Colombia issues set of rules in relation with the work of employees outside of free zones
Colombia’s Ministry of Commerce, Industry and Tourism issued Decree 505 of 2022, according to which the Industrial Users of Free Zone Services will have a maximum of fifty percent (50%) as a limit, to costs generated by the performance of the works carried out by employees outside of free zones, in relation with the total costs of rendering the services for which the industrial user is qualified in the respective fiscal year.
The extension of the maximum limit took into consideration that the labor costs of the companies that are located in free zones represent high percentages within their cost structure, since they provide specialized services and, therefore, require the hiring of highly qualified human talent, also requiring competitive salaries and telecommuting options.
This decree will enter into force once the health emergency decreed by the National Government due to Covid-19 ends, which is currently scheduled for April 30, 2022.
Colombia’s continues to reduce custom tariffs to more agricultural inputs
In order to control the increasing price of food that final consumers in Colombia are facing, the country’s Ministry of Agriculture and Rural Development issued Decree 504 of 2022, through which custom tariffs are reduced to 0% for a term of 12 months in relation with the import of products from the agricultural sector that are part of the 39 subheadings that are listed.
On the other hand, the Decree also contemplates a six-month extension of the 0% custom tariff on imports of products that are classified in 36 tariff subheadings that the rule also incorporates, a measure that was originally taken through Decree 307 of 2022.
In both Decrees, custom tariff reduction affect agricultural products, including: feldspar, nitrogen, sodium hydroxide, magnesium nitrates, calcium phosphates, and salts. The measure is due to the impact that international transportation crisis has had on the cost of agricultural products.
The Decree came into force the day following its publishing in the official gazette, and its measures will correspond to the terms of 12 and 6 months for the aforementioned subheadings.
US dollar depreciates against Colombia peso
On April 4th, 2022, the value of the USD had a considerable depreciation, dropping approximately COP 60 and closing at a value of COP 3,706.95, the lowest price of the currency in the past 9 months. Among the different factors that may be impacting the price are international causes such as the Russia/Ukraine conflict and national causes such as the USD flows that enter the country due to the Sura and Nutresa takeover bid.