With the objective of attack high food inflationwhich in 2021 closed at 19.94%, the national government is preparing a draft decree to reduce the arances of 182 products and inputs that have been considered key for the country.
(USA, China and Mexico, Colombia’s main trading partners).
This draft of the standard continues with the recommendations that the Committee on Tariff, Customs and Foreign Trade Affairs (Triple A) he did to the Executive a few weeks ago. According to preliminary information from the Ministry of Commerce, spokesperson for this issue, these are goods that currently have a tariff of 5%, 10% and in some cases 15%.
“In the case of food and non-alcoholic beverages, an annual inflation of 19.94% was registered, mainly explained by an increase in the prices of potatoes, beef, bananas, milk and fruits. This was associated with an increase in the cost of agricultural inputs. Additionally, the winter wave affected the agricultural production cycle”, states the decree.
(179 imported products would reduce their tariffs).
The standard promises to establish a 0% tariff and for a duration of six months to products such as cornseeds for sowing or wheat grain, paper, paperboard, cotton, plastic, gingerbread, threads, needles, carpets, leather, resinoid oils, among others.
Subsequently, the draft decree proposals seek to establish a 0% tariff and suspend for six months the application of the Andean Price Band System to malt from unroasted or roasted barley and other grains classified under the tariff subheading of 1107100000 and 1107200000.
(Fuel and food, the ‘kings’ of imports).
Likewise, the rule expresses the establishment of tariffs of 5% and a duration of six months for products based on cereals obtained by puffing or roasting; other cereal-based products except corn and non-alcoholic beverages except fruit or other fruit or vegetable juices.
In the last point of the draft that is still under study, it is proposed to establish a 0% tariff with a temporary period of 12 months to different inputs that are used in the agricultural production, as premixes for animals; mineral fertilizers and chemical and binder preparations for foundry molds or cores.
These recommendations have the approval of the Superior Council for Fiscal Policy (Confis) of the Ministry of Finance and it is expected that in the coming days the Government will officially issue the document.
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