Plan Vallejo for Services Manual

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ISSN 2027-3576

Title: Plan Vallejo de Servicios / Plan Vallejo for Services ISSN 2027-3576 Volume I – No. 1 February 2009 Bogotá D.C. Publishing Company: Fiducoldex – Fideicomiso Proexport Colombia Vicepresidencia de Inversión Extranjera [email protected] Publisher: Dirección Legal y Clima de Inversión Teléfono: +57 (1) 5600100 – Fax: +57 (1) 3415689 Cover Design: Natalia Cortés Báez Printed in: Offset Gráfico Bogotá D.C., Colombia – Febrero de 2009 The digital version of this document can be found on: www.investincolombia.com.co

Contents

Manual . Plan Vallejo for Services

manual

PVSS

What is the Plan Vallejo for Services?................................................................................................

0.1

6 Reasons to use the Plan Vallejo for Services ..............................................................................0.2

0.3

Any service exporting company can benefit from the Plan Vallejo for Services .................. ....

0.4

What does it take to access the Plan Vallejo for Services? ............................................................

What services (economic activities) are covered by the Plan Vallejo for Services? ...............0.5

0.6

How to export using the Plan Vallejo for Services? .......................................................................

0.7

What capital goods and parts can be imported under the Plan Vallejo for Services? ................

0.9

How can the temporary imports of capital goods and parts be terminated under the Plan Vallejo for Services? ..............................................................................................................0.10

When can the Plan Vallejo for Services be terminated? ....................................................................0.11What penalties apply when the applicant fails to comply with the established obligations and commitments? .........................................................................................................

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0.8

When can the Plan Vallejo for Services be modified? ......................................................................

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0.12Related links ............................................................................................................................................ 15

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What is the Plan Vallejo for Services? 0.1The Plan Vallejo for Services is a foreign trade instrument whereby service export companies including consortia and temporary unions can request authorization from the Colombian National Tax and Customs Office (DIAN), to import capital goods and spare parts (the latter only for air transportation services) totally free of import tariffs and VAT, in exchange for providing exportable services.

0.2

The PVSS offers the following benefits:

* Tariff suspension for imports of capital goods and their parts.

* No VAT is accrued on the importation of the capital goods and their parts.

* Approval of a global dollar quota to import capital goods and their parts.

* More efficiency in customs formalities.

* Possibility of being used by small and medium size companies (SMEs).

* Possibility of exporting services under the four international service provision modes recognized by the General Agreement on Trade in Services (GATS) of the World Trade Organization (WTO).

Reasons to use the Plan Vallejo for Services

((((-Manual . [ Plan Vallejo for Services ]

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Manual . [ Plan Vallejo for services ]

0.3 Any service exporting company can benefit from the Plan Vallejo for Services

The PVSS is available for companies, including consortia and temporary unions, which are registered as “service exporting users” before the DIAN.

In order to access a Plan Vallejo program, the applicant’s Tax Identification Registry (RUT) must show as main economic activity -that from which the applicant derives most of its income- any of the eco -nomic activities identified by the International Standard Industrial Classification (ISIC) described under Decrees 2099 and 2100 of 2008.

0.4 What does it take to access the Plan Vallejo for Services?

* The program must contribute to the country’s service exporting development.

* Submitting to DIAN the application form whereby the applicant company states that it carries out one of the main economic activities for which the tool is available and requests authorization to import capital goods and authorized spare parts. The financial statements of the company must be attached.

* Having a production capacity that supports the service export project.

* Exporting services for an amount equivalent to one point �ve times 1.5 the FOB price of the imported capital goods and spare parts.

* The applicant must obtain a bank guarantee or insurance policy equivalent to 20% of the FOB price of the quota amount allocated to the program.

* The companies exporting health services must be of�cially recognized by the National Heath Accreditation System or they must commit to obtain this authorization within the next two years of the approval of the program.

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What services (economic activities) are covered by the Plan Vallejo for Services?

0.5

Exports of the following services under the ISIC classification adapted for Colombia may qualify for the benefits offered by this tool:

((((Manual . [ Plan Vallejo for Services ]

7210 Hardware consultancy.

7220 Software consultancy and supply.

7230 Data processing.

7240 Data base activities and on-line distribution of e-contents.

7250 Maintenance and repair of office, accounting and computing machinery.

7290 Other computer related activities.

7310 Research and experimental development on natural sciences, health sciences, livestock and agricultural sciences and engineering.

7320 Research and experimental development on social sciences and humanities.

4010 Production, collection and distribution of electricity.

7495 Packing and bottling activities.

reSearch and developmentServiceS r&d

other ServiceSprovided to companieS

ServiceS Provided to comPanieS

packaging ServiceS

ServiceS and informaticS related ServiceS

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What services ( economic activities) are covered by the Plan Vallejo for Services?

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7499 Exclusively for activities related to telephony and computer integrated systems to generate and receive outgoing and incoming calls (Call Centers).

9211 Production and distribution of motion pictures and video tapes.

9213 Radio and television activities.

6424 Radio and paid television broadcasting services, by using cable networks, satellite or wireless land networks

C OMMUNICATION SERVICE S

TELECOMMUNICATION SERVICES

AUDI OV ISU A L SERVIC ES

RAD IO AND T.V. SERVI CES

511 W ho lesale t rade act iv it ies o n a fee o r con t ract b asis, in term ed iaries, co m m o d it y b ro kers, auct io n ee rs an d o th er w ho lesalers w ho se act iv it y co nsist s exclu siv ely o r m ain ly of est ab lish in g a con t act b et w een b u yer and seller o r p erfo rm in g t rad e act iv it ies o n b eh al f an d at th e exp en se of th ird p art ies, even th ro ug h In tern et .

DI STRIBUTION SERVICE S

WHOLESALE TRADE SERVICES

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8090 Other types of education.

teaching ServiceS

other ServiceS related to teaching and

education

8511 Activities of health care institutions with hospitalization services.

8512 Medical practice-related activities.

8514 Diagnosis support activities.

8515 Therapeutic support activities.

8519 Other human health-related activities.

Social and health ServiceS

hoSpital ServiceS

other human health ServiceS


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5511 Lodging in hotels, guest houses and apartment hotels.

5513 Lodging in tourist resorts and camping areas.

TOURI SM AND TRAVEL -RELATED SERVICE S

LODGING SERVICES

4530 Construction of civil infrastructure engineering works for bridges, hanging roads, tunnels, underground tunnels, construction of ocean and river ports, airport runways and railroad construction.

7421 Architectural and engineering activities and related techni-cal consultancy only for services related to construction of bridges, hanging roads, tunnels, underground tunnels, construction of ocean and river ports, airport runways and railroad construction.

C ON STRUCTION SERVICE S AND R ELATED ENGINEERING SERVICE S

GENERAL ENGINEERING WORK FOR

CONSTRUCTION

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3511 Only maintenance, overhaul and repair of ships or floating structures.

6211 National regular transportation of passengers by air.

6213 International regular transportation of passengers by air.

6214 National regular transportation of cargo by air.

6333 Airport activities and supplementary services for air transportation.

3530 Only for airship and airship engine maintenance, repair or modification.

3520 Only for the specialized repair of locomotives and rolling stock.

tranSPortation ServiceS

maritime tranSportation

ServiceS

air TranSporTaTion ServiceS

paSSenger and cargo tranSportation

airShip maintenance and repair

maintenance and repair of railroad

tranSportation equipment

railroad TranSporTaTion ServiceS

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5020 Maintenance and repair of automotive vehicles only for cargo transportation.

6310 Cargo handling.

6320 Storage and warehousing.

T RAN SPORTATION SERVICE S

MAINTENANCE AND REPAIR OF ROAD TRANSPORTATION

EQUIPMENT

ROAD TRANSPORTATION SERVICES

ANCILLARY SERVICES RELATED TO ALL MEANS

OF TRANSPORTATION

STORAGE SERVICES


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How to export using the Plan Vallejo for Services?

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Under the Plan Vallejo, services may be exported through one of the following modes:

The service is provided in country “A” to a consumer residing in country “B”. (i.e. tailor-made software exports, telemedicine services, etc.).

The service is provided in country “A” to a consumer from country “B” who travels to country “A” for such purpose. (i.e. Tourism, education or health services)

Through commercial presence in the territory of country “B” of the sup-plier of country “A” in order to provide the service to consumers in country “B”. (i.e. Distribution services)

The service is provided through the temporal physical presence of a natural person of country “A” in country “B” with the purpose of meeting the needs of consumers from country “B”. (i.e. Professional construction services)

In another country’s territory by a Colombian company remaining in such foreign country for less than 18 months.

international Service SuPPly modeS

Mode 1: croSS-boundary

SuPPly

Mode 2: conSumPtion

abroad

Mode 3: commercial

PreSence

Mode 4: PhySical movement

of PerSonS

Mode 5: eSPecial mode

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((((


0.7 What capital goods and parts can be imported under the Plan Vallejo for

Services?

The PVSS system allows for the importation of the capital goods corresponding to the tariff items listed by the Ministry of Treasury and the Ministry of Commerce, Industry and Tourism under article 1 of Decree 2394 of 2002, as subsequently amended. (Instructions to see these tariff ítems: 1. Enter our website www.proexport.com.co ; 2. Click on “Investing in Colombia”; 3 Click on “Publica-tions”).

Spare parts imports are allowed only for air transportation services, and are limited to the tariff items listed by the Ministry of Treasury and the Ministry of Commerce, Industry and Tourism under Decree 2100 of 2008.

0.8 When can the Plan Vallejo for Services be modified?

* When the user wants to extend the term to import the goods.

* When the user wants to increase or decrease the authorized import quota.

* When the user wants to do the import with a leasing contract .

* When the user wants to transfer, totally or partially, the authorized import quota.

* When the user of the program is going to change as a result of a corporate reorganization.

* When the user wants to restructure the export commitments.

A PVSS program can be modified in the following cases:

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How can the temporary imports of capital goods and parts be terminated under the

Plan Vallejo for Services?

0.9


When can the Plan Vallejo for Services be terminated?

* When the export commitments are fully met. In particular, by duly presenting the studies of demonstration and proving that the good has been re-exported or ordinarily imported.

* Whenever the studies of demonstration have been duly presented and it has been proved that the good has been re-exported or ordinarily imported.

* When the approved quota is not entirely used.

* Unilaterally, by DIAN, when the user fails to comply with the established obligations.

* By re-exporting the imported capital goods:

* Due to the impossibility to comply with the program commitments.

* Due to compliance with the program commitments.

* To replace them for the insurance policy submitted by the applicant.

* Due to previous authorization of the DIAN, during the life of the program.

* Due to compulsory re-exportation when the DIAN refuses to issue the import

registration for the ordinary import of the goods.

* By importing the good under the ordinary import system:

* Due to the impossibility to comply with the program commitments.

* Due to compliance with the program commitments.

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0.11 What penalties apply when the applicant fails to comply with the

established obligations and commitments?

The following penalties may apply as a consequence of the applicant’s default regarding the obligations acquired upon approval of the program; they can all be enforced through the insurance policy submitted by the applicant:

* Termination of the program by the DIAN and enforcement of the insurance policy.

* Fines equivalent to 20% of the import quota used, if the user fails to comply with the obligations acquired.

* Fines equivalent to 20% of the import quota used when the export commitments are not met.

* Fines equivalent to 5% of the import quota used without due justification.

0.12 Related links

* Ministry of Commerce, Industry and Tourism www.mincomercio.gov.co

* Proexport www.proexport.com.co

* Colombian National Tax and Customs Office (DIAN) www.dian.gov.co

For more information please contact us at [email protected]

Plan Vallejo for Services Manual

Investor Relations

Transcript of Plan Vallejo for Services Manual