WORLD TRADE G/STR/N/10/COL G/STR/N/11/COL ORGANIZATION 8 June 2007
(07-2374) Working Party on State Trading Enterprises Original: Spanish
STATE TRADING
New and Full Notification Pursuant to Article XVII.4(a) of the GATT 1994 and Paragraph 1 of the Understanding on the Interpretation of Article XVII
COLOMBIA
The following communication, dated 23 May 2007, is being circulated at the request of the delegation of Colombia.
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STATE TRADING
I. ENUMERATION OF STATE TRADING ENTERPRISES
A. IDENTIFICATION OF STATE TRADING ENTERPRISES1
Fábrica de Licores y Alcoholes de Antioquia2, Industria Licorera de Bolívar3, Industria Licorera de Boyacá3, Industria Licorera de Caldas4, Industria Licorera del Cauca4, Empresa de Licores de Cundinamarca4, Empresa Licorera del Chocó4, Industria Licorera del Huila3, Empresa Licorera del Magdalena3, Fábrica de Licores del Tolima4, Industria de Licores del Valle4, Unidad de Licores del Meta2, Empresa Licorera de Santander3, Empresa de Licores del Caquetá4 and Aguardiente Nariño.2
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) ENCOMPASSED IN PRODUCT DESCRIPTION)
FÁBRICA DE LICORES Y ALCOHOLES DE ANTIOQUIA
PRODUCT NAME HS NUMBER Aguardiente Antioqueño (aguardiente or sugar-cane 22.08.40.00.00 liquor) Ron Medellín Añejo (aged rum) 22.08.40.00.00
INDUSTRIA LICORERA DE BOLIVAR
PRODUCT NAME HS NUMBER Licor Tres Esquinas (rum) 22.08.40.00.00
INDUSTRIA LICORERA DE BOYACA
PRODUCT NAME HS NUMBER Aguardiente Onix 22.08.40.00.00 Aguardiente Líder 22.08.90.42.00 Ron Boyacá (rum) 22.08.40.00.00 Ron Tunja (rum) 22.08.40.00.00
1 Not all Colombian distillers operate as or are constituted as State industrial and trading enterprises. Some form an integral part of the department or are under concession. 2 Distillery attached to the department. 3 Concessionaire enterprise. 4 State industrial and trading enterprise.
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INDUSTRIA LICORERA DE CALDAS
PRODUCT NAME HS NUMBER Aguardiente Cristal 22.08.40.00.00 Aguardiente Amarillo de Manzanares (yellow 22.08.90.42.00 aguardiente) Aguardiente Cristal sin Azúcar (sugar-free 22.08.90.49.00 aguardiente) Ron Viejo de Caldas (aged rum) 22.08.40.00.00 Ron Extraviejo Juan de la Cruz (extra-aged rum) 22.08.40.00.00 Ron Joven de Caldas (young rum) 22.08.40.00.00
INDUSTRIA LICORERA DEL CAUCA
PRODUCT NAME HS NUMBER Aguardiente Caucano 22.08.90.42.00 Ron Añejo del Cauca (aged rum) 22.08.40.00.00
EMPRESA DE LICORES DE CUNDINAMARCA
PRODUCT NAME HS NUMBER Aguardiente Néctar Azul 22.08.40.00.00 Aguardiente Néctar Tradicional 22.08.40.00.00 Licor Anisado Néctar Club sin azúcar (sugar-free 22.08.40.00.00 anise-flavoured liqueur) Ron Blanco Sun Dry (white rum) 22.08.40.00.00 Ron Santafé (rum) 22.08.40.00.00
EMPRESA LICORERA DEL CHOCÓ
PRODUCT NAME HS NUMBER Aguardiente Platino 22.08.40.00.00 Aguardiente Platino Deluxe sin Azúcar (sugar-free 22.08.40.00.00 aguardiente) Ron Añejo Citará (aged rum) 22.08.40.00.00
INDUSTRIA LICORERA DEL HUILA
PRODUCT NAME HS NUMBER Aguardiente Doble Anís (anise-flavoured aguardiente) 22.08.40.00.00 Ron San Agustín (rum) 22.08.40.00.00
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EMPRESA LICORERA DEL MAGDALENA
PRODUCT NAME HS NUMBER Ron Caña Negro (sugar-cane rum) 22.08.40.00.00
FÁBRICA DE LICORES DEL TOLIMA
PRODUCT NAME HS NUMBER Aguardiente Tapa Roja 22.08.40.00.00 Licor de Aguardiente Tapa Roja Ice (low-alcohol 22.08.40.00.00 aguardiente) Ron Viejo San Juan (aged rum) 22.08.40.00.00
INDUSTRIA DE LICORES DEL VALLE DEL CAUCA
PRODUCT NAME HS NUMBER Aguardiente Blanco del Valle (white aguardiente) 22.08.40.00.00 Ron Trapiche Premium (premium rum) 22.08.40.00.00
The objective of Industria de Licores del Valle is to produce and market alcohol, spirits and beverages in order to transfer significant resources to the department of Cauca Valley for the benefit and support of health, education, sports, culture and recreation.
UNIDAD DE LICORES DEL META
PRODUCT NAME HS NUMBER Aguardiente Llanero 22.08.40.00.00 Ron San Martín Añejo (aged rum) 22.08.40.00.00
EMPRESA LICORERA DE SANTANDER
PRODUCT NAME HS NUMBER Aguardiente Santander 22.08.40.00.00
EMPRESA DE LICORES DEL CAQUETA
PRODUCT NAME HS NUMBER Aguardiente Extra del Caquetá (premium aguardiente) 22.08.40.00.00 Aguardiente Sol Dorado 22.08.40.00.00
AGUARDIENTE NARIÑO
PRODUCT NAME HS NUMBER Aguardiente Nariño 22.08.40.00.00
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II. REASON AND PURPOSE
A. REASON OR PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING ENTERPRISE
Colombian distilleries represent a significant source of income for the departmental tax authorities which ensure the sustainability of health services in many regions of the country. Furthermore, the distilleries' profits are transferred to the departments, in some cases in their entirety. In short, the reasons for the existence of the distilleries are as follows:
1. Ease of administration and monitoring of tax payments.
2. Profits go to the departments, not to a private entity.
3. Resources are invested in deprived areas of the country.
4. Departmental distilleries are subject to an additional tax which private enterprises would not be prepared to pay.
5. Job creation.
6. Taxes generated of approximately 1,096 billion Colombian pesos.
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR CONSTITUTIONAL POWERS
Under Article 336 of the Political Constitution of Colombia, Article 61 of Law No. 14 of 1983 and Decree No. 1222 of 1986 and Law No. 788 of 2002, the departments, i.e. the territorial divisions of the country, are independent administrators of the spirits monopoly, with discretion to allocate revenue on the basis of preferential allocation to the education and health services.
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE
The departmental distilleries produce, export and import alcoholic beverages. Individual traders may engage in export and import activities after concluding a contractual agreement with the department concerned. The agreement includes clauses concerning the term of validity and the quantity of spirits that may be distributed, as well as the department's percentage share under the monopoly of the sale price of the products.
IV. STATISTICAL INFORMATION
• TABLE I Structure of the Colombian domestic and imported spirits market 2002-2006.
• TABLES II Sales of rum and of aguardiente on the domestic market 2002-2006.
• TABLE III Industria Licorera de Caldas. Exports 2002-2006.
• TABLE IV Fábrica de Licores y Alcoholes de Antioquia. Exports 2002-2006.
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• TABLE V Empresa de Licores de Cundinamarca. Exports 2002-2006.
• TABLE VI Industria Licorera del Valle. Exports 2002-2006.
• TABLE VII Fábrica de Licores y Alcoholes de Antioquia. Imports 2003 to September 2006.
• TABLE VIII Empresa de Licores de Cundinamarca. Imports 2003 to September 2006.
• TABLE IX Industria Licorera del Valle. Imports 2003 to September 2006.
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TABLE I
STRUCTURE OF THE COLOMBIAN SPIRITS MARKET
2002-2006
Millions of 750 cc. units
YEAR PRODUCT 2002 2003 2004 2005 2006 WHISKY 1.52 2.32 2.97 2.91 4.05 VODKA 0.36 0.38 0.40 0.44 0.44 GIN 0.04 0.08 0.10 0.07 0.07 BRANDY-COGNAC 0.16 0.06 0.03 0.02 0.05 IMPORTED RUM 0.50 0.52 0.72 0.69 0.40 TEQUILA 0.07 0.10 0.17 0.16 0.23 MISC. SPIRITS 1.65 2.27 3.53 2.59 1.88 AGUARDIENTE 88.18 85.37 82.61 74.71 72.11 DOMESTIC RUM 36.12 35.17 44.63 48.53 52.48 TOTAL SPIRITS 128.60 126.27 135.15 130.11 131.71
Note: Excludes data relating to the informal market and products not considered as distilled spirits pursuant to Decree No. 365/95. Source: Data from the Fondo-Cuenta (account fund for taxes on the consumption of foreign products) and the Asociación Colombiana de Industrias Licoreras, ACIL (Colombian Distillers' Association).
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TABLE II
SALES OF RUM ON THE DOMESTIC MARKET
2002-2006
Millions of 750 cc. units
Description of YEAR product DISTILLERY (including HS number) 2002 2003 2004 2005 2006 ANTIOQUIA 15.43 19.02 25.60 27.28 28.23 CALDAS 14.88 11.53 15.15 17.82 21.31 CUNDINAMARCA 3.20 2.55 3.17 3.06 2.52 VALLE 0.22 1.33 0.48 0.17 0.20 BOYACA 0.15 0.04 0.01 0.05 0.16 CAQUETA - - HUILA 0.02 0.02 0.01 0.00 0.01 MAGDALENA - 0.01 0.05 0.04 0.02 META 0.01 0.02 0.04 0.02 0.01 22.08.40.00/RUM NARIÑO 0.20 0.64 NORTE DE - - SANTANDER PUTUMAYO 0.49 - SANTANDER - - TOLIMA - - 0.05 0.07 0.01 CAUCA - 0.00 0.00 CONSORCIO S.M. 1.51 - CHOCO 0.07 0.00 TOTAL 36.12 35.17 44.63 48.53 52.48
Source: Colombian Distillers' Association (Asociación Colombiana de Industrias Licoreras, ACIL). Calculations: Ministry of Commerce, Industry and Tourism.
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TABLE II (Cont'd)
SALES OF AGUARDIENTE ON THE DOMESTIC MARKET
2002-2006
Millions of 750 cc. units
Description of YEAR product DISTILLERY (including HS number) 2002 2003 2004 2005 2006 ANTIOQUIA 30.33 29.90 27.10 26 26.16 CALDAS 8.86 8.97 8.29 7 6.43 CUNDINAMARCA 19.74 17.67 17.56 17 15.73 META 1.52 1.68 1.37 1 1.07 TOLIMA 1.97 2.05 2.16 2 1.49 VALLE 13.18 11.70 13.29 9 10.65 CAUCA 3.91 3.84 3.90 4 2.85 BOYACA 1.37 1.23 1.14 1 1.43 22.08.40.00/ CAQUETA 1.22 1.19 1.13 1 0.51 AGUARDIENTE HUILA 2.01 2.02 2.00 2 1.73 SANTANDER 0.81 0.70 0.23 0 0.23 NARIÑO 1.54 3.14 3.43 3 2.81 NORTE DE 0.59 0.42 0.29 0 0.15 SANTANDER MAGDALENA 0.01 CHOCO 1.11 0.87 0.72 1 0.87 PUTUMAYO TOTAL 88.18 85.37 82.61 74.71 72.11
Source: Colombian Distillers' Association (Asociación Colombiana de Industrias Licoreras, ACIL). Calculations: Ministry of Commerce, Industry and Tourism.
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TABLE III
STATISTICAL INFORMATION ON AGUARDIENTE AND RUM EXPORTS
STATE TRADING: INDUSTRIA LICORERA DE CALDAS
Millions of 750 cc. units
Quantity Average Description of Average exported by representative Average product(s) procurement National YEAR State domestic sales export price (including price production trading price US$ HS number(s)) US$ (1) enterprise US$ (1) 1 2 3 4 5 6 2002 22.08.40.00 1.93 2.38 3.79 1.67 124.30 2003 22.08.40.00 2.63 1.88 4.15 1.84 120.54 2004 22.08.40.00 0.98 2.25 5.08 2.27 127.24 2005 22.08.40.00 1.28 2.45 5.82 2.59 123.23 2006 22.08.40.00 1.12 2.24 5.84 2.24 124.59
Source: Colombian Distillers' Association (Asociación Colombiana de Industrias Licoreras, ACIL). (1) Domestic price (Colombian pesos) Average annual exchange rate – Banco de la República. Calculations: Ministry of Commerce, Industry and Tourism.
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TABLE IV
STATISTICAL INFORMATION ON AGUARDIENTE AND RUM EXPORTS
STATE TRADING: FÁBRICA DE LICORES DE ANTIOQUIA
Millions of 750 cc. units
Quantity Average Description of Average exported by representative Average product(s) procurement National YEAR State domestic sales export price (including price production trading price US$ HS number(s)) US$ (1) enterprise US$ (1)
1 2 3 4 5 6 2002 2.208.40.00 0.74 0.99 3.79 1.67 124.30 2003 22.08.40.00 0.49 2.34 4.15 1.84 120.54 2004 22.08.40.00 0.89 3.00 5.08 2.27 127.24 2005 22.08.40.00 1.03 3.32 5.82 2.59 123.23 2006 22.08.40.00 1.21 3.65 5.84 3.65 124.59
Source: Colombian Distillers' Association (Asociación Colombiana de Industrias Licorera, ACIL) (1) Domestic price (Colombian pesos)/Average annual exchange rate – Banco de la República Calculations: Ministry of Commerce, Industry and Tourism.
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TABLE V
STATISTICAL INFORMATION ON AGUARDIENTE EXPORTS
STATE TRADING: EMPRESA DE LICORES DE CUNDINAMARCA
Millions of 750 cc. units
Average Description of Quantity Average representative Average product(s) exported by procurement National YEAR domestic sales export price (including State trading price production price US$ HS number(s)) enterprise US$ (1) US$ (1) 1 2 3 4 5 6 2002 22.08.40.00 0.10 0.95 3.48 1.56 88.18 2003 22.08.40.00 0.12 1.01 3.62 1.54 85.37 2004 22.08.40.00 0.13 1.26 4.28 1.74 82.61 2005 22.08.40.00 0.14 1.38 4.91 1.81 74.71 2006 22.08.40.00 0.12 1.56 5.05 1.56 72.11
Source: Colombian Distillers' Association (Asociación Colombiana de Industrias Licoreras, ACIL). (1) Domestic price (Colombian pesos)/Average annual exchange rate – Banco de la República. Calculations: Ministry of Commerce, Industry and Tourism.
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TABLE VI
STATISTICAL INFORMATION ON AGUARDIENTE EXPORTS
STATE TRADING: INDUSTRIA LICORERA DEL VALLE
Millions of 750 cc. units
Average Description of Quantity Average representative Average product(s) exported by procurement National YEAR domestic sales export price (including State trading price production price US$ HS number(s)) enterprise US$ (1) US$ (1) 1 2 3 4 5 6 2002 (*) 22.08.40.00 0.09 1.85 3.79 1.67 124.30 2003 22.08.40.00 0.02 2.32 3.62 1.54 85.37 2004 22.08.40.00 0.08 2.48 4.28 1.74 82.61 2005 22.08.40.00 0.10 4.31 4.91 1.81 74.71 2006 22.08.40.00 0.30 3.99 6.64 1.85 72.11
Source: Colombian Distillers' Association (Asociación Colombiana de Industrias Licoreras, ACIL). (*) Industria Licorera del Valle exported both aguardiente and rum in 2002; in subsequent years it exported only aguardiente. (1) Domestic price (Colombian pesos)/Average annual exchange rate - Banco de la República. Calculations: Ministry of Commerce, Industry and Tourism.
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TABLE VII
FÁBRICA DE LICORES Y ALCOHOLES DE ANTIOQUIA
IMPORTS 2003 - SEPTEMBER 2006
LITRES
Description of product(s) Quantity imported f.o.b. value Average import YEAR (including HS number(s)) (millions of litres) (US$ million) price 22.08.40.00.00 0.77 1.13 1.47 2003 22.08.90.10.00 2.29 3.37 1.47 22.07.10.00.00 3.00 1.23 0.41 2004 22.08.40.00.00 4.58 3.96 0.87 22.07.10.00.00 5.02 2.15 0.43 2005 22.08.40.00.00 6.30 5.10 0.81 2006 22.08.40.00.00 5.94 5.07 0.85
Source: Import declarations, Information Systems Office, ,Ministry of Commerce, Industry and Tourism.
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TABLE VIII
EMPRESA DE LICORES DE CUNDINAMARCA
IMPORTS 2003 – SEPTEMBER 2006
LITRES
Description of product(s) Quantity imported f.o.b. value Average import YEAR (including HS number(s)) (millions of litres) (US$ million) price 2003 22.07.10.00.00 6.47 3.63 0.56 2004 22.07.10.00.00 4.05 2.02 0.50 2005 22.07.10.00.00 3.77 1.94 0.52 2006 22.07.10.00.00 5.12 3.08 0.60
Source: Import declarations, Information Systems Office, Ministry of Commerce, Industry and Tourism.
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TABLE IX
INDUSTRIA DE LICORES DEL VALLE
IMPORTS 2003 – SEPTEMBER 2006
LITRES
Description of product(s) Quantity imported f.o.b. value Average import YEAR (including HS number(s)) (millions of litres) (US$ million) price 22.07.10.00.00 1.05 0.29 0.28 2003 22.08.40.00.00 0.09 0.10 1.10 22.07.10.00.00 1.49 0.54 0.36 2004 22.08.40.00.00 0.08 0.16 2.16 2005 22.08.40.00.00 0.02 0.05 1.97
Note: No information available for 2006. Source: Import declarations, Information Systems Office, Ministry of Commerce, Industry and Tourism.
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