Trade: Exporting to the world Business Guide

Doing business in Colombia? We can help 2 Colombia Business Guide Colombia Business Guide 3

UK Trade & Investment contact details at British diplomatic posts in Colombia

British Embassy, Bogotá Carrera 9 No 76-49 Piso 9 Bogotá Telephone: +57 (1) 326 8300 Email: [email protected]

UK Trade & Investment 1 Victoria Street London SW1H 0ET Telephone: +44 (0)20 7215 8000 Email: [email protected] 4 Colombia Business Guide Contents Colombia Business Guide 5

Contents

Introduction UK Trade & Investment 8 Who is this guide for? 8 How to use this guide 9 What does this guide aim to do? 9

Researching the market Why Colombia? 10 The security situation 11 Human rights and business 12 Taking the strategic approach 14 What is the right approach to Colombia? 15

How UK Trade & Investment General support 17 can help Tailor-made support 18 Trade missions/overseas events 20 International trade contacts 21

Market entry and Agents and distributors 23 start-up considerations Direct and indirect investment 26 Other sources of assistance 28

Making the connections Finding a customer or partner 30 This guide was produced by the UK Disclaimer Marketing and branding 32 Trade & Investment Latin America Unit Whereas every effort has been made Language 34 in collaboration with the UK Trade & to ensure that the information given Investment team in Colombia. in this document is accurate, neither Import formalities Tariffs and taxes 36 UK Trade & Investment nor its parent and documentation General documentation requirements 37 Contributors Departments (the Department for Additional documentation 38 Edward Dallas, Clara Bermudez, Business, Innovation and Skills, and Labelling and packaging 40 Juliet Gilbert, Karen Donegan and the Foreign and Commonwealth Commercial samples and temporary imports 42 UK Export Finance. Office) accept liability for any Technical help for exporters 43 errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. 6 Colombia Business Guide Contents Contents Colombia Business Guide 7

Finance and Getting paid 44 risk management Insurance 46 Due diligence 48 Intellectual property rights 49 and 50 Managing security and other risks 51

Business etiquette Overview 52 Meetings 53 Entertainment 54 Business negotiations 55 Interpreters 56 Return visits 58 Useful Spanish phrases 59 Top ten tips 60 8 Colombia Business Guide Introduction Introduction Colombia Business Guide 9

Introduction

How to use this guide This guide is not designed to be read from cover to cover, but more as a useful reference to dip in and out of. It should be used in conjunction with the UK Trade & Investment website (www.ukti.gov.uk) and our other services.

The guide will take you through the process of doing business in Colombia, while the website will provide you with regularly updated market and sector information, business opportunities and details of further contacts.

UK Trade & Investment Who is this guide for? What does this guide aim to do? The objective of this guide is to steer UK Trade & Investment is the government We do not usually advise companies This guide aims to provide a route companies through the initial research department that supports companies new to international trade to start with map of the way ahead, together with and preparation stages of entering the in the UK trading internationally, and Colombia. But the positive business signposts to other sources of help. Colombian market. It is far better overseas companies seeking to locate in environment and strong growth potential It identifies the main issues associated to spend time and money carrying the UK. One of the themes of its five-year does make the market an attractive with initial research, market entry, risk out thorough research and preparation strategy Prosperity in a Changing World is proposition for those considering management, and cultural and language before entering the market than to to focus UK Trade & Investment’s resources entering the Latin American region. issues. It also includes questions that enter in a rush, only to discover, when it on high-growth emerging markets, like This guide is aimed at companies you should ask at the beginning of your is too late, that you have made a poor Colombia, which are expected to be major experienced in overseas trade that are research into Colombia. and expensive decision. UK Trade & sources of both trade and foreign direct new to doing business with Colombia. Investment is here to help you through investment in the future. You may be an exporter looking to We do not pretend to provide all the this process. sell directly to Colombian customers answers in this guide. It does not cover UK Trade & Investment helps or through an agent or distributor in the regions of Colombia or sectoral companies of all sizes do business the country. Alternatively, you may opportunities. Neither does it cover the in Colombia through a network of be planning to set up a representative legal, taxation or accounting aspects international trade teams based in the office, joint venture or other form of of setting up a permanent presence nine English regions and the devolved permanent presence in Colombia. in market – but it will point you in the administrations in Northern Ireland, direction of the people, organisations and Scotland and Wales. In Colombia, there publications that will be able to answer is a dedicated trade team based in the these and other more detailed questions. British Embassy in Bogotá. 10 Colombia Business Guide Researching the market Researching the market Colombia Business Guide 11

Researching the market Why Colombia? The security situation

Colombia is a market of 46 million UK trade with Colombia is people, making it the third largest underdeveloped. Although the country in Latin America, after Brazil Colombian economy is of a broadly and Mexico. Its economy is currently similar size to that of South Africa, UK the 33rd largest in the world, but it exports to Colombia are a small fraction is the positive business environment of those to the latter market. This and strong growth prospects that reflects historical factors but it is an mark out Colombia as a potential illustration of the potential that exists. market of interest for UK companies. UK exports (including both goods and Colombia was included in the group services) amounted to £418 million in of new emerging markets (the so- 2010, up 60 per cent on 2009. Strong called CIVETS) alongside Indonesia, growth continued in 2011. Our principal Vietnam, Egypt, Turkey and South export categories are pharmaceuticals, Africa. Colombia regained investment chemicals, machinery and beverages. grade status in March 2011, a move On the services side, the UK is that was an endorsement of its the particularly strong in insurance. positive outlook, both economically and politically. The Government continues Although trade is relatively small, UK It is impossible to talk about Colombia Having said that, Colombia does still to seek the modernisation of the investment in Colombia has been of without considering the security face the problems associated with drug Colombian economy and has ambitions significant interest. Historically, this situation. Many people’s first reaction trafficking and, particularly in rural to join the OECD (Organisation was principally concentrated in the to the thought of Colombia is to think areas, an ongoing struggle between for Economic Co-operation and extractive sectors (oil and mining) but of drugs cartels and the associated armed groups and the Government. Development) in the future. recent years have seen new companies violence. Many are also familiar But Colombia’s cities are broadly similar arriving in services, beverages and with Colombia’s history of political to any large cities around the world and chemicals. The UK is the second largest violence which has led to large-scale the problems that visitors face are those investor in Colombia after the United displacement of people. As is often that exist in all large cities. The Foreign States, with recorded investments of the case, the reputation is, in general, and Commonwealth Office’s (FCO’s) US$5 billion in the last ten years. outdated and does not reflect the travel advice (available through current reality of the country. www.fco.gov.uk) provides the latest Colombia today offers a range of information and advice for those visiting. opportunities in a variety of sectors. Historically, Colombia has looked For companies that plan to operate in primarily to the United States for new more rural areas of Colombia (such as products and technology but Europe those related to the extractive sector is increasingly seen as an interesting or agriculture), professional security alternative. advice will be an important part of your research work. 12 Colombia Business Guide Researching the market Researching the market Colombia Business Guide 13

Human rights and business

Colombia has long given rise to justified In Colombia, as anywhere else, human rights concerns. President we encourage and expect British Santos has taken a different approach companies to respect human rights from his predecessor, proposing and in the places where they do business. steering through landmark legislation Both UK Trade & Investment and the to compensate victims of violence and Embassy provide advice for British restore land stolen during the conflict companies to ensure that this happens. (when owners were often forcibly displaced). The Colombian Government UK Trade & Investment and human is engaged in dialogue with human rights colleagues in our Embassy in rights groups, and plans a national Bogotá work closely on the issues human rights conference. But there is around human rights and the extractive a long way to go in terms of effective industries. Our British Embassy was implementation, especially in remote a founding member of the Mining areas where much abuse takes place. and Energy Committee in 2007, an organisation to facilitate the application of the international Voluntary Principles on Security and .

Further information is available on the Overseas Business Risk pages at: www.ukti.gov.uk. 14 Colombia Business Guide Researching the market Researching the market Colombia Business Guide 15

Taking the strategic approach What is the right approach to Colombia?

Doing business in any new market can seem daunting for those new to the country, but taking a strategic approach is the key to making the process manageable. Researching your plan and strategy in the market will be important.

Doing business in any new market can • if you should be targeting particular • Leave your preconceptions at home. • Obtain good-quality, independent seem daunting for those new to the niches; • Keep hold of your business sense as legal and professional advice. country, but taking a strategic approach • if you can be competitive in the market. tightly as you would anywhere else. • If your product is in danger of being is the key to making the process • Do your homework on the market copied or counterfeited, seek specialist manageable. Researching your plan and UK Trade & Investment can help you and on potential partners. legal advice on how best to protect strategy in the market will be important. with market research through its • Be patient – as in any market your intellectual property rights. Overseas Market Introduction Service with which you are not familiar, • Do not forget to carry out due In many sectors, Colombia is already (OMIS). The type of services that we can bureaucratic issues can take longer diligence. a well-developed market, with strong offer are explained in greater detail on than you would expect. • Consult UK Trade & Investment domestic companies and the presence pages 17–19. • Take the time to meet and speak teams in Colombia and the UK who of a number of international players. with people – as in many Latin can provide help with researching the But new products, technologies and Once you have confirmed that there is American markets, people prefer to Colombian market. services are well received once their a market for your product in Colombia, do business with people who they benefits are understood. Educating you will need to address questions such know personally. Building a positive potential clients and partners about the as the form of market entry (i.e. setting relationship will be crucial. competitive advantage that you offer up a subsidiary, using a distributor • Take a long-term approach, but will be important and may take time. or an agent, joint ventures etc.), do not always stick too rigidly to identification of customers, potential your plans. Your initial research should tell you: partners, geographical locations, sales structure, product delivery, payment • whether there is a market for your channels and after-sales set-up. product/service in Colombia; 16 Colombia Business Guide How UK Trade & Investment can help How UK Trade & Investment can help Colombia Business Guide 17

How UK Trade & Investment can help General support

UK Trade & Investment is the Once you have gained a clearer idea As an initial support, the following Aid Funded Business: Advice on government department that of the Colombian market and what fully funded or subsidised services are business opportunities that are created supports companies in the UK you want to achieve, it is time to start available from UK Trade & Investment through multilateral development trading internationally, and overseas exploring what kind of tailored research in the UK. agency projects. companies seeking to locate in the UK. you might need to make an effective entry into the market, and to find the Export Marketing Research Scheme: Export Communications Review: An UK Trade & Investment helps right customer or partner. Assistance with the development of a assessment of your company’s export companies of all sizes do business strategy for considering which overseas communications, followed by practical in Colombia through a network of You can commission a wide range markets to target. recommendations for improvement. international trade teams based in the of information about the Colombian nine English regions and the devolved market from UK Trade & Investment Business Opportunities: Free information administrations in Northern Ireland, through your local International Trade through our internet-based service Scotland and Wales. In Colombia, there Adviser or directly from UK Trade & matching UK companies with is a dedicated trade team based in the Investment’s team in the market. international opportunities identified by British Embassy in Bogotá. trade and investment teams overseas. In England, UK Trade & Investment You will be able to find much valuable provides support for companies through free information from carrying out desk a network of international trade teams research. A good place to start is the based in the English regions. UK Trade & Investment website (www.ukti.gov.uk) which provides UK Trade & Investment services are also detailed country and sector available to companies in Scotland, information. Registering on the website, Wales and Northern Ireland (contact which is free, provides you with a details on page 21). number of additional benefits, such as access to business opportunities, sector As well as providing general help and and market reports, and information advice on all aspects of exporting, the alerts. You can choose the information trade teams run a range of roadshows, you receive. seminars and other events on Colombia and other markets. To find your nearest International Trade Adviser, call +44 (0)20 7215 8000 or enter your postcode in the local trade team finder at: www.ukti.gov.uk. 18 Colombia Business Guide How UK Trade & Investment can help How UK Trade & Investment can help Colombia Business Guide 19

Tailor-made support

UK Trade & Investment officers Warmed list of customer/partner In-market support Assistance with marketing issues: in Colombia provide tailor-made contacts: A more detailed list of Briefing: Face-to-face briefing at the Support in tailoring press releases information for UK-based companies potential customers or partners (agents, start of a trip or debriefing following to local markets and distributing at a highly subsidised rate. This may distributors etc), including assessment market visit. material to potentially interested include the following. of their level of interest in connecting media contacts. Where appropriate and with you based upon phone calls and Assistance with appointment feasible, arrangement of interviews Pre-visit research provision of information about your programme: Arrangement of with relevant local media. Market overview: Basic market company. appointments with contacts (either information such as sector information identified through research or provided In all cases, the service can be tailored and statistics. Verification of potential partners: by you) and putting together visit to your particular needs. If in doubt, Information on specific partners such programmes. please ask us. We will be happy to help. Market analysis: Market information, as verification of company registration We are always willing to give general specific to your product or service, details and assessment (with or without Assistance with visit logistics: advice and chat through your potential including analysis of competitors and direct contact) of their potential Advice on costings and arrangement approach to the market before defining the regulatory environment affecting reliability. This should inform, rather of logistical services such as transport, the exact ways that we can help. your market entry. than replace, your wider due diligence hotels and interpreters. Charges processes. associated with such services are the The cost of UK Trade & Investment Contacts client’s responsibility and costs will be services depends on the time invested Initial list of potential business paid direct to the service providers. in research or spent undertaking these contacts: Tailored list of named activities. Details of the rates are individuals and verified contact details, In-market promotional events: available from www.ukti.gov.uk – ranging from local sectoral chambers Assistance with arrangement of the exact charge will depend on the and relevant government contacts in-market events, such as technical specification of the service. through to potential customers or seminars to explain your product/ business partners. service to a wider audience or a social marketing event to launch a brand. Details of other service providers: Events can be arranged in the Embassy Information on such essential in-market or Ambassador’s Residence (subject to contacts as lawyers, accountants, risk approval) or assistance can be given in management specialists and freight identifying and making arrangements handlers. with a suitable hotel or other location. 20 Colombia Business Guide How UK Trade & Investment can help How UK Trade & Investment can help Colombia Business Guide 21

Trade missions/overseas events International trade contacts in Scotland, Wales and Northern Ireland

Scottish Development International 150 Broomielaw 5 Atlantic Quay Glasgow G2 8LU Tel: 0800 917 9534 within Scotland Tel: +44 (0)141 228 2828 outside Scotland Email: [email protected] Website: www.sdi.co.uk

Welsh Government – Business Wales QED Centre, Main Avenue Treforest Industrial Estate Treforest CF37 5YR Tel: +44 (0)3000 6 03000 Email: [email protected] Website: www.ibwales.com In some cases, taking part in overseas If your company is small or medium events such as trade shows or missions sized and Colombia is a new market Invest Northern Ireland is an effective way for you to test for you then you may be eligible for Bedford Square markets, attract customers, appoint financial support to visit the country Bedford Street agents or distributors, and make under UK Trade & Investment’s Market Belfast BT2 7EH sales. UK Trade & Investment helps Visit Support scheme. Tel: +44 (0)28 9023 9090 companies to attend trade shows Email: [email protected] worldwide and take part in trade UK Trade & Investment also periodically Website: www.investni.com missions to overseas markets. Trade arranges events in Colombia around missions are usually arranged in specific sectors or to help promote conjunction with sectoral bodies in the recently arrived companies to reach UK such as trade associations or with out to their potential customers. the British and Colombian Chamber of Details of these events are published Commerce, based in London. on the UK Trade & Investment website. Alternatively, the UK Trade & Investment team in Colombia will be willing to provide you with details of planned events. 22 Colombia Business Guide Market entry and start-up considerations Market entry and start-up considerations Colombia Business Guide 23

Market entry and start-up considerations Agents and distributors

To export successfully to Colombia, you Using a distributor may also increase will probably need to employ an agent the risk of your product being copied or distributor. An agent is a company’s or counterfeited. Some of the larger direct representative in a market and agents and distributors may manage is paid commission, while a distributor so many product lines that not sells products on to customers after enough attention is given to yours. buying them from the manufacturer – Consequently, as sales develop, you their income comes from the margin may wish to open a representative they can make on resale. office or some other form of permanent representation. Employing an agent or distributor can have several advantages and can To manage agents and distributors greatly reduce the set-up costs and properly, you will need to identify the time taken to enter the market. By agent or distributor that is right for you. employing an agent or distributor, you The box overleaf provides a checklist gain the experience of a seasoned local of issues which you should take into who will have expert local knowledge account when looking for a suitable and contacts, and you will have agent or distributor. Once you have decided that entering someone on the ground to look after the Colombian market is right for your your interests. company, you will need to identify how best to do it. Should you establish However, there are some drawbacks to a presence in the country, appoint a this approach. Employing a third party distributor/agent or just deal directly will raise the cost of your products in with end customers from outside the the market and you will also lose some country? The answer will depend on control over sales and/or marketing. your product and your ambitions. 24 Colombia Business Guide Market entry and start-up considerations Market entry and start-up considerations Colombia Business Guide 25

Finding the right agent or distributor

The checklist below details the things you should bear in mind when looking for a suitable agent or distributor.

Background Distribution • Size of agency • Geographical coverage • History and experience of the agency • Types of outlets covered • Other companies they act for • Transportation • What is the core business of the • Warehousing agent or distributor? • Does the agent or distributor carry Are they right for your product? products that will compete with • Knowledge of local market conditions yours? • Marketing competence • Does the agent or distributor • Degree of English language skills have qualified staff who can throughout the organisation offer the necessary technical support, • Their interest in and enthusiasm Once you have chosen an agent or • working closely with your agents and without which clients will not buy the for new products – and yours in distributor, you will want to ensure that distributors to show them how they products? particular your products receive a fair share (or more can profit from your products; • Number of salespeople, their length • After-sales service levels than a fair share) of the agent’s attention. • helping to prepare marketing and of service and qualifications • Required skills of salespeople This can be achieved by: sales plans for your agent; • Success record • Personal relationships – this is very • visiting as regularly as possible at • providing regular training for the sales • Banking and trade references important in Colombia senior management level – this shows staff, and after-sales training for the interest in, and commitment to, the technical staff in the UK; agent and the market. This will also • linking performance to incentives and provide you with an opportunity to agreeing milestone targets. learn about conditions in the market and see how your products are faring. This is particularly important in Colombia, where it is beneficial to develop strong personal relationships to do business; 26 Colombia Business Guide Market entry and start-up considerations Market entry and start-up considerations Colombia Business Guide 27

Direct and indirect investment

There are both direct and indirect In contrast, a corporation (whether SA investment options in Colombia. Direct or SAS) would be a new local company investments are those made through that is separate from any parent a newly created corporate entity or organisation. The SAS is a relatively new by acquiring equity participation in option which is intended to simplify existing Colombian companies. the processes of incorporation and of the basic functions of a company Indirect investments are those made (for example decisions, meetings, by foreign investors in the financial liquidation etc). and securities market where there is no requirement to establish or acquire If you are looking to set up a local participation in a Colombian company. company, we strongly advise that you take the necessary legal advice to Colombian law provides several means choose the most appropriate business by which foreign companies can model. The registration process has to be engage in permanent commercial done before the chamber of commerce operations in Colombia. The three most for the city in which you are operating. commonly resorted vehicles are the Parts of the process can be carried out opening of a foreign company branch online at www.crearempresa.com.co (FCB) and the incorporation of a share (Spanish only). corporation (SA) or simplified share corporation (SAS). Joint ventures do exist in Colombia but are not the norm. Temporary In legal terms, an FCB is an extension partnerships for specific projects of the head office and, for several are relatively common in areas such purposes, is considered the same legal infrastructure/construction. person under Colombian law. This is particularly important for companies looking to bid for state contracts as it allows them to use the experience of their head office as if it were their own. 28 Colombia Business Guide Market entry and start-up considerations Market entry and start-up considerations Colombia Business Guide 29

Other sources of assistance

Cámara de Comercio Colombo The importance of good quality, Británica independent legal advice, as in any Executive Director foreign market, cannot be emphasised Calle 104 # 14 A-45 Of. 301 enough. It is essential to take this into Bogotá Colombia consideration at the early stages of Tel: +57 (1) 256 2833 doing business in Colombia. Always seek Email: [email protected] good quality, independent legal advice Website: www.colombobritanica.com before starting or signing anything that could have legal implications for Proexport is the Colombian investment your company, such as contracts or and export promotion agency. Its representation agreements. Specialist office in London provides assistance to legal advice on the protection of companies looking to make significant intellectual property rights is also In addition to the services of UK The British and Colombian Chamber of investments in the Colombian market. recommended, and there are a number Trade & Investment, a wide variety of Commerce in London and the Cámara of highly qualified patent agents’ non-subsidised private sector advice is de Comercio Colombo Británica in Proexport Colombia firms available. available for companies wishing to do Bogotá also provide services to UK 6th floor, 2 Conduit Street business in Colombia. This ranges from companies and work closely with UK London W1X 2SB Legal advice can be expensive, but it the business services provided by the Trade & Investment. Tel: +44 (0)20 7491 3535 is money well spent. It is far better big international professional services Email: [email protected] to ensure that your interests in firms to specific services provided by British and Colombian Chamber Website: www.proexport.com.co Colombia are fully protected than to specialist operators. Many of the large of Commerce leave yourself vulnerable to untoward banks and accountancy firms provide Executive Director consequences – which can be even reports on the Colombian economy. 2 Belgrave Square more expensive to sort out. London SW1X 8PJ The range of services available from Tel: +44 (0)207 235 2106 The UK Trade & Investment office the private sector includes company Email: director@ in Colombia is able to provide a list structuring advice, marketing, britishandcolombianchamber.com of lawyers that you may want to translation and interpreting, website Website: www.britishandcolombian consider using. design, partner selection, due diligence, chamber.com legal services, advice on intellectual property rights and outsourcing. Some consultancies also offer more in-depth assistance on developing a strategy for Colombia and operational management. 30 Colombia Business Guide Making the connections Making the connections Colombia Business Guide 31

Making the connections Finding a customer or partner

Once you have identified where • Take part in a trade mission. you would like to start and the best There are an increasing number of market‑entry option for your company, trade missions to Colombia, run the next step is to find potential by accredited organisations such customers or partners. as trade associations and local chambers of commerce. Travel The following are effective ways of grants may be available to eligible finding potential customers, partners, participating companies. agents or distributors: • If your company is small or medium • Commission a UK Trade & Investment sized and Colombia is a new market Overseas Market Introduction Service for you, then you may be eligible for (OMIS) workplan for a tailor-made list financial support to visit the country of potential customers/partners. under UK Trade & Investment’s A programme of meetings with these Market Visit Support scheme. potential customers/partners can also be arranged for you when you In addition, the approaches below are visit Colombia. This is a very cost- suitable for companies that want to effective way of using locally based, export to Colombia: experienced UK Trade & Investment • Make an approach via the relevant • Advertise in professional newspapers, For more information on how UK Trade staff to identify potential partners on trade association in Colombia. magazines and journals. This can be & Investment can help you to do your behalf. The members themselves will beneficial for high-tech companies business in Colombia, please speak to • Attend trade shows and exhibitions. often be the most appropriate with leading-edge products, but less your local UK Trade & Investment team A number of relevant trade shows and partner for your product or service effective for companies without a on +44 (0)20 7215 8000 or visit: exhibitions take place in Colombia in Colombia, and many Colombian technical background. www.ukti.gov.uk. throughout the year and these can companies that are well established • Hold a technical seminar or product be an excellent way to meet potential in their home market are looking introduction meeting in Colombia customers face to face. for new and innovative products to to attract potential customers. UK complement their range. You can ask Trade & Investment can help you to for a list of trade associations when organise product promotion events commissioning an OMIS workplan. and identify the audience you need to target as part of our chargeable services. Alternatively, you may wish to involve a local consultancy or public relations firm to assist you. 32 Colombia Business Guide Making the connections Making the connections Colombia Business Guide 33

Marketing and branding

You may also consider using UK Trade & In order to create a favourable Investment’s Export Marketing Research impression of your company and your Scheme. This aims to encourage UK product in Colombia, it is essential companies to use export marketing to have a name that Colombian research in the development of a consumers can remember. If a product market-entry strategy for their overseas name cannot be remembered, it is markets. It also helps companies to unlikely that many people will buy it. undertake or commission marketing It is not advisable to have a Spanish research based on sound methods. translation of your company name. In addition to advising companies on English names are very well accepted how to use export marketing research by . effectively, financial support towards the costs of undertaking approved However, it is advisable to spend some projects is also provided. time on getting this right. The name is, after all, the first thing your potential For more detailed information, customers will see. please contact: Export Marketing Research Team Tel: +44 (0)845 034 2111 Trade shows, exhibitions and advertising and cultural preferences is a recipe Email: [email protected] are good ways to attract potential for failure. Later pages of this guide customers. You will need to ensure highlight some aspects of Colombian that your sales literature is effective culture that you should be aware of in both English and Latin American when promoting your product. Spanish, and you should consider whether advertising is appropriate. The advertising industry is well We recommend that you involve a developed in Colombia, with several Colombian specialist consultancy which UK companies present. UK companies can develop an appropriate marketing wishing to advertise to the general strategy for your product and the areas public should engage the services of a of Colombia it will be sold in. local advertising agency to ensure that their messages are both localised and You may need to adapt your product sophisticated. to meet Latin American preferences or requirements to be able to sell it. Ignoring local regulations, tastes 34 Colombia Business Guide Making the connections Making the connections Colombia Business Guide 35

Language

The language spoken in Colombia is You should try to ensure that initial Spanish. The differences between Latin written approaches to Colombian American and European Spanish are companies are in Spanish and that slight and are similar to those between company literature (including a British and American English (such as basic company profile and product differing accents and some different descriptions/profiles) is translated. words). The Spanish spoken in each country of Latin America varies slightly. The Export Communications Review Making the effort to speak the language provides companies with impartial demonstrates seriousness about and objective advice on language and entering the Colombian market and any cultural issues, in order to help them attempt to communicate in Spanish develop an effective communications will be met with a positive response. strategy, thus improving their competitiveness in existing and future While an increasing number of export markets. Subsidies are available Colombian companies, particularly for eligible companies. those with an international outlook, have English speakers on their staff, For more detailed information, do not assume that everyone speaks please contact: English. It is advisable to engage a local Export Communications Review Team interpreter to accompany you to your Tel: +44 (0)845 034 2111 first meeting with a potential partner Email: [email protected] until you have established whether your partner is confident doing business in English. Your interpreter will be one of your key assets and should be selected with care. 36 Colombia Business Guide Import formalities and documentation Import formalities and documentation Colombia Business Guide 37

Import formalities and documentation Tariffs and taxes General documentation requirements

It is important that you comply with all aspects of Colombian regulations on documentation. A good partner and/or freight forwarder with a local office in Colombia can provide invaluable advice on documentation.

It is important to know what import We recommend the European The general documentation Details for each of these are available duties a product will attract when it Commission’s Market Access Database requirements for Colombia are: in the Exporters’ Guide to Import lands in Colombia. Duties payable on as a useful resource to research how • customs import declaration Formalities within the European imports to Colombia are generally no much it will cost to import your • manifest Commission’s Market Access Database higher than 15 per cent, but there are product. The database is available at • declaration of dutiable value (http://madb.europa.eu) by exceptions. http://madb.europa.eu but can only • commercial invoice searching by the HS code. be accessed from an internet service • pro forma invoice The Harmonised System (HS) code is provider within the EU. • packing list an international method of classifying • Certificate of Origin products for export purposes. This Within the database, the Applied Tariffs • Air/Sea Waybill classification is used by customs Database section allows users to enter • Bill of Lading officials around the world to determine an HS code or product description to • Single Tax Register (RUT) of importer the duties, taxes and regulations that obtain a tariff rate and details of taxes apply to the product. To obtain an HS applicable, enabling you to calculate a code, you should contact HM Revenue landed cost. & Customs, (Tel: +44 (0)1702 366077).

In addition to import duties, IVA (equivalent to VAT) is levied on the value of the items. The general rate of IVA is 16 per cent but certain products are subject to higher or lower rates. 38 Colombia Business Guide Import formalities and documentation Import formalities and documentation Colombia Business Guide 39

Additional documentation

• Department of Health – The BIS Export Control Organisation’s medical, dental and surgical helpline +44 (0)20 7215 4594 is the equipment and prostheses first point of contact for information on (Tel: +44 (0)20 7211 6200) export controls. The helpline provides • Medicines and Healthcare advice on many issues, including how products Regulatory Agency – to establish whether or not specific medicinal products goods need an export licence, the (Tel: (+44 (0)20 3080 6000) different types of export licences, how • Health and Safety Executive – to complete export licence application pesticide products forms and how long they take to (Tel: +44 (0)151 951 4000) process. The helpline is also the point of • Forestry Commission – contact for Export Control Organisation phytosanitary certificates for publications and licence application products or packaging material forms. If you think your goods may made from or containing wood be applied to military purposes, you Tel: (+44 (0)117 906 6000) are advised to phone the helpline or visit: www.bis.gov.uk/policies/export- Some goods may be subject to A Certificate of Free Sale can be required Export controls apply to goods upon control-organisation. additional requirements with regard to show that goods are available for which the UK Government has placed to documentation, such as sanitary retail sale, that they comply with EU export licensing requirements. If you think your goods may be of certificates, licences, permits and regulations and that they are suitable Typically, export controls relate to importance to national heritage, you Certificates of Free Sale. The European for use by EU consumers. For more goods that may be used in some way are advised to contact the Department Commission’s Market Access Database details, please contact: for military applications, goods of for Culture, Media and Sport provides details, including an • Department for Business, Innovation national heritage (such as works of (Tel: +44 (0)20 7211 6200). explanation of each relevant form, and and Skills (BIS) – cosmetics, art) and certain chemicals used in the can be searched by tariff code. The chemicals, detergents and cleaners, production of controlled drugs. For chemicals that are used in the Colombian National Institute for Control and disinfectants. production of drugs, contact the Home of Medical Products and Foods (INVIMA) (Tel: +44 (0)20 7215 5000) Office (Tel: +44 (0)20 7035 0445). is the principal body responsible for • Defra – food, drinks, additives, If the above departments consider your such certifications, although certain disinfectants, pesticides, animal products to be sensitive, you will need specific requirements are operated medicines, milk and dairy products, to apply for an export licence before by others, such as the Ministry of pet food and animal feed, fertilisers, you can take them out of the UK. Environment. sugar and sugar products, protein crops, tea, coffee, cocoa, herbs, spices, tobacco flavouring and wines (Tel: +44 (0)845 9 335577) 40 Colombia Business Guide Import formalities and documentation Import formalities and documentation Colombia Business Guide 41

Labelling and packaging

Imported products can be sold in Colombia in their original packaging provided a label is attached, giving the following information in Spanish: • a description of the product; • the weight (metric) according to local standards; • the composition of the product; • its validity (sell-by date or expiry); • the country of origin; • the name and address of the importer; and • any special warning on risks to health or security.

Usually this label is placed on the product in Colombia by the importer. Special labelling regulations apply to imported pharmaceutical specialities, antiseptics, disinfectants, cosmetics, beauty and hygienic preparations, alcoholic beverages and foodstuffs. 42 Colombia Business Guide Import formalities and documentation Import formalities and documentation Colombia Business Guide 43

Commercial samples Technical help for exporters and temporary imports

Samples should not be sent to Colombia Short-term importation of products that This service is provided by the British For specific enquiries, contact BSI: without prior discussion with the will not be altered is allowed, usually Standards Institution (BSI) to give Tel: +44 (0)20 8996 9001 customer or partner in Colombia. Some for a period of six-months with the information and advice on compliance Email: [email protected] samples may first require authorisation possibility of a three-month extension. with overseas statutory and other from specific government departments It is usual for the customs authority technical requirements. BSI produces a in Colombia, such as the Ministry of to require a deposit equivalent to wide range of publications and provides Health and the Ministry of Agriculture. 10 per cent of applicable duties/taxes a special updating service of information Samples cannot be sent if the product as a guarantee. in some product fields. It can supply is forbidden. detailed information on foreign An alternative scheme exists for regulations; identify, supply and assist longer-term (but still temporary) in the interpretation of foreign standards imports of some goods (for example and approval procedures; research capital goods). and give consultation on technical requirements for a specific product; and provide translations of foreign standards, items of legislation and codes of practice. Fees vary according to the amount of work involved. 44 Colombia Business Guide Finance and risk management Finance and risk management Colombia Business Guide 45

Finance and risk management Getting paid

When exporting to Colombia, normal There are no problems regarding Letters However, you should be aware that a Open Account and Bills for Collection commercial rules should be followed. of Credit opened by Colombian banks Letter of Credit is a form of contract are other payment methods You should discuss the arrangements being accepted by foreign banks. The between two banks. A bank will make commonly used between UK exporters for security of payment with the Colombian bank will make payment payment provided that the documents and Colombian importers when a international department of your UK provided that the requirements of the submitted to it are in strict compliance trustworthy relationship between bank or a UK-based bank that has Letter of Credit are met. with the conditions of the Letter of the two parties has developed. Major offices in Colombia. Credit. This is regardless of the purchase exports and those requiring long-term contract. To prevent the possibility of finance will require specialist payment If you are a first-time exporter to a payment being made if the terms of and financing. Colombia, the standard method of the purchase contract are not met, the receiving payment for your goods is seller should check the Letter of Credit by documentary Letter of Credit. The against the terms of the purchase opening of the documentary Letter of contract and request amendments from Credit is based on the contract signed the buyer if necessary. between the Colombian buyer and the foreign seller. 46 Colombia Business Guide Finance and risk management Finance and risk management Colombia Business Guide 47

Insurance

Insurance Commercial risk insurance for Commercial insurance in Colombia capital goods and major projects usually covers transportation insurance, UK Export Finance is the UK’s official financial insurance, fire insurance and export credit agency. Its aim is to multi-risk insurance. help UK exporters of goods or services win business and complete contracts The private sector provides credit with confidence. UK Export Finance insurance for exports of consumer can support contracts valued as low goods, raw materials and other similar as £20,000, and potentially up to goods. Speak to your banker or hundreds of millions of pounds. The insurance broker for more information, responsibility for providing insurance or contact the British Insurance Brokers’ cover for consumer goods that are sold Association for impartial advice. Its on credit of less than two years rests details are as follows: with private sector insurers.

British Insurance Brokers’ Association UK Export Finance provides services John Stow House such as: 18 Bevis Marks • insuring UK exporters against non- London EC3A 7JB payment by their overseas buyers; UK Export Finance works closely with For more detailed enquiries, please Tel: +44 (0)870 950 1790 • helping overseas buyers to purchase exporters, sponsors, banks and buyers contact UK Export Finance’s customer Email: [email protected] goods and/or services from UK to put together the right package for service team: Website: www.biba.org.uk exporters by guaranteeing bank loans each contract. The full range of UK Tel:+44 (0)20 7512 7887 to finance those purchases; Export Finance facilities is available to Email: [email protected] Private sector insurance has some • sharing credit risks with banks in support exports to, and investments limitations though, particularly for order to assist exporters in the raising in, Colombia. sales of capital goods, major services of tender and contract bonds, in and construction projects that require accessing pre- and post-shipment To help those customers who are longer credit packages or are in riskier working capital finance and in securing relatively new to exporting, UK Export markets. confirmations of Letters of Credit; Finance has a customer service team • insuring UK investors in overseas which is dedicated to helping new markets against political risks. customers through the process of credit insurance and export finance. 48 Colombia Business Guide Finance and risk management Finance and risk management Colombia Business Guide 49

Due diligence Intellectual property rights

Colombia is a signatory to the main The UK Intellectual Property Office is intellectual property treaties and is the government body responsible for a member of the World Intellectual the national framework of intellectual Property Organization. Its legal property rights in the UK, comprising provisions are therefore generally patent, designs, trademarks and consistent with international standards. copyright. If you are thinking about trading internationally, then you should In principle, Colombia has a sound consider registering your intellectual intellectual property rights and patent property rights abroad. For more details system that does not discriminate on intellectual property abroad, please unduly against foreign companies. visit the UK Intellectual Property Office However, the effectiveness and website at: www.ipo.gov.uk. impartiality of enforcement is variable, and any legal processes will be both Further information is also available protracted and costly. from the Colombia Intellectual Property Office within the Superintendencia For companies whose business involves de Industria y Comercio. It can be intellectual property, there are issues contacted at: Due diligence is a security measure that issues concerning a particular business of piracy and contraband to consider, companies often choose to undertake enterprise. Special attention should particularly for goods such as books, Superintendencia de Industria in order to check the viability of be given to ongoing, or threatened, CDs, textiles, cosmetics and spare parts. y Comercio potential new business before contracts commercial and tax claims at Carrera 13 No. 27-00 are signed. administrative and judicial level. Bogotá Tel: +57 (1) 587 0000 Due diligence is strongly advisable, Wherever the purchase of property is Website: www.sic.gov.co particularly in connection with the involved, a review of relevant status (English language option available) acquisition of a shareholding interest of the land is crucial to establish that either in a limited liability company or the seller has valid title, and that the in corporation, and in the acquisition of property is free and unencumbered. all quotas of a limited liability company This is of particular importance or shares of a corporation. in Colombia given the history of displacement and cases of illegal For practical purposes, it is acquisition of land. recommended that due diligence covers all accounting, tax and legal 50 Colombia Business Guide Finance and risk management Finance and risk management Colombia Business Guide 51

Bribery and corruption Managing security and other risks

There can be problems of bribery Colombia ranks joint 80th in the world While most visits to Colombia are problem Colombia has long given rise to justified and corruption in Colombia. Bribery in the 2011 Transparency International free, visitors should be aware that human rights concerns. President is illegal. It is an offence for a British Corruption Perceptions Index (CPI), problems can arise. Colombia’s cities Santos has taken a different approach national or someone who is ordinarily putting it slightly behind Brazil, are broadly similar to any large cities from his predecessor, proposing and resident in the UK, a body incorporated alongside Peru and ahead of Argentina, around the world, and the problems steering through landmark legislation in the UK or a Scottish partnership, to Mexico and Venezuela. Other data from that visitors face are those that exist to compensate victims of violence and bribe anywhere in the world. Transparency International suggests in all large cities. The FCO travel advice restore land stolen during the conflict that the problem is most serious in the available through www.fco.gov.uk (when owners were often forcibly In addition, a commercial organisation political field, although it is also present provides the latest information and displaced). The Colombian Government carrying on a business in the UK can be in business. advice for those visiting. is engaged in dialogue with human liable for the conduct of a person who is rights groups, and plans a national neither a UK national nor resident in the Visit the Business Anti-Corruption portal Colombia does still face the problems human rights conference. But there is UK or a body incorporated or formed in page (www.business-anti-corruption.com), associated with drug trafficking and, a long way to go in terms of effective the UK. In this case it does not matter which provides advice and guidance particularly in rural areas, an ongoing implementation, especially in remote whether the acts or omissions which about corruption in foreign markets struggle between armed groups and areas where much abuse takes place. form part of the offence take place in and some basic but effective procedures the Government. the UK or elsewhere. you can follow to protect your company In Colombia, as anywhere else, from it. For companies that plan to operate we encourage and expect British in more rural areas of Colombia (for companies to respect human rights example those related to the extractive in the places where they do business. sector or agriculture), professional Both UK Trade & Investment and the security advice will be an important Embassy provide advice for British part of your research work. companies to ensure that this happens.

High-profile businesses can become Further information is available on targets and will need to consider the Overseas Business Risk pages adequate security for office buildings at: www.ukti.gov.uk. and high-level personnel. Most major office buildings and residential blocks in smarter areas of town have private security. Businesses operating outside of main cities will need to give adequate thought to protective security and take specialist advice. 52 Colombia Business Guide Business etiquette Business etiquette Colombia Business Guide 53

Business etiquette Overview Meetings

Before conducting business in The first time you meet a woman, it is It is probably best to start arranging interpret lateness as a sign of rudeness Colombia, you should be aware of the generally acceptable to shake hands. But meeting schedules around two weeks or laziness. If you will be late for a local customs that need to be taken if you have met the woman before, it is before arrival. But it is normal for meeting business meeting, you should phone into account. Colombia’s business acceptable to kiss her on her right cheek schedules to remain unconfirmed the Colombian company to advise culture varies across the country. In the – once you have met her several times until close to the visit. If a local agent them. Colombians generally expect the major cities (in particular Bogotá and and have built a relationship with her, or partner is arranging a programme, British to always be punctual. Traffic in Medellín) the business culture is more this will be expected. you should be open to the fact that Colombia, especially in Bogotá, can be formal, often more so than in Europe. the schedule is likely to change. It is bad. Plan your trip with plenty of time In smaller cities such as Cali or those on On departure you should repeat all the advisable to reconfirm meetings the to allow for delays. the North Coast, the culture is generally handshaking and kissing. Time should day prior to the scheduled slot. more informal. In all cases, establishing be included in your programme; do not Meetings can be lengthy affairs, personal relationships is essential to assume that you will be able to make a Obtaining meetings with officials allowing for small talk before getting conducting business. quick exit. from the public sector can be difficult, down to business. It is normal to especially at a senior level, and these exchange business cards at the start First names should normally be used, Conservative European dress code is the meetings can be particularly vulnerable of meetings (although in restaurants but titles are important and terms like norm for all meetings in Bogotá and to late changes. UK Trade & Investment or at business lunches they should be ‘Doctor’ should be used as a form of Medellín. Remember that just because can provide assistance in this area. exchanged after the meal). It is polite to respect. This can be used for anyone Bogotá is close to the equator does not turn off your mobile (or leave it mute) with a degree, not necessarily a PhD. mean that it will be warm – at 2,500m When arranging a meeting, it is during meetings and business lunches above sea level, the temperature will advisable to provide the Colombian or dinners, only taking urgent calls. If When meeting and greeting, expect a usually be around 18–21ºC. Smart company with the subject of the you are expecting an urgent call, it is firm handshake, often for a long time, casual dress may be acceptable, or even meeting in advance, although only wise to inform your contact in advance. combined with strong eye contact. desirable, in smaller cities, especially limited detail will be required at that Smiling is also important. Expect to be those in more tropical climates. stage. You should not expect the The Colombians welcome presentations, asked several times how you are and how company to have carried out extensive and a booklet that contains the things are going. If this is your first visit Colombians usually take holidays during research on you, even if you have sent presentation will be well received – it to Colombia, you are likely to be asked if Christmas/New Year and Easter week. them material in advance. It is probable is always useful to have some form you like it – Colombians are universally Try to arrange your visit at other times. that they will not have read the of marketing material (preferably in keen to know that visitors have a positive material. Punctuality is frequently an Spanish) to hand over. impression of their country and how issue in Colombia, but you should not it compared with what they imagined. They are aware that Colombia’s reputation in the UK and elsewhere is often one of violence and drugs. 54 Colombia Business Guide Business etiquette Business etiquette Colombia Business Guide 55

Entertainment Business negotiations

Lunches are an important part of doing that you are not left to eat by yourself. Detailed business negotiations Investment can provide a list of lawyers business in Colombia. Business breakfasts If you invite somebody, this should be are likely to happen in the office with experience in international trade are also popular (generally starting at for lunch or dinner, not just for a drink. rather than over a meal. In general, issues, on request. 7.30am or 8.00am), allowing business Colombians tend to be flexible and to get under way before the traffic gets If you organise an evening reception, adaptable and use common sense. Colombians are more likely to discuss to its worst. These can be in your hotel it is best to send paper invites rather They will tend to want to get to know business issues by telephone than by or a local restaurant/café. than electronic ones. Do not expect you before doing business. You should email. But the first preference is face- Colombians to confirm their attendance not expect a quick, direct approach to to-face communication. It would be a Sometimes it is easier to invite a senior (or those who have confirmed to turn issues of pricing etc. mistake to depend on the regular mail contact for a meal than for a meeting up!). In general, 40 per cent of invitees service to send material. Instead, it is at the company. Meals are seen as an will attend a reception. Although Colombians are concerned better to use registered mail/couriers. opportunity to socialise and to get to with quality, price is usually the key know each other in more depth. They Colombians are unlikely to arrive on factor to determine the success of a Colombian business is hierarchical. are not generally seen as a means to time for social functions; they usually business partnership. Decisions are made by the carry out detailed negotiations. arrive 15 minutes after the agreed time. highest‑ranking person. You should As a general rule, it is advisable to not expect lower-level staff to have the Colombians rarely do business over Lunch in Colombia is served from appoint a lawyer who will be able to authority to take decisions. dinner but are open to evening 12.30pm to 2.30pm and dinner from help you with all the legal requirements receptions. They may well invite a about 8.30pm to 10.30pm. during the contract process. UK Trade & foreigner for dinner on a social basis so 56 Colombia Business Guide Business etiquette Business etiquette Colombia Business Guide 57

Interpreters Below are a number of recommendations for getting the best out of your interpreter:

• Though expensive, a well-briefed professional interpreter is best. A good interpreter is the key to successful Interpreting is a skill requiring communication. If your audience has professional training. Just because • Try to involve your interpreter at every stage of your pre-meeting not understood what you have said, someone is fluent in English and arrangements. The quality of interpretation will improve greatly if your message will be lost on them. Spanish, it does not mean that they you provide adequate briefing on the subject matter. Ensure that will make a good interpreter. your interpreter understands what you are aiming to achieve. A growing number of Colombian executives and government officials If you are giving a speech or • Speak clearly and evenly, without rambling on for several paragraphs speak some English but you should presentation, remember that the need without pause. Your interpreter will find it hard to remember everything not assume this. When setting up an to interpret everything will cut your you have said, let alone interpret all your points, if you speak at length. appointment, you should always ask if available speaking time approximately your contact speaks English or if they in half (unless using simultaneous • Conversely, do not speak in short phrases and unfinished sentences. would feel more comfortable with an interpreting). It is essential to make Your interpreter may find it impossible to translate the meaning if interpreter. sure that the interpreter can cope with you have left a sentence hanging. any technical or specialist terms in the There are two forms of interpreting. presentation. It is better to be slightly • Avoid jargon, unless you know your that interpreter is familiar with Consecutive interpreting means that restricted and speak close to a script the terminology. you speak and then your interpreter than to fail to be understood because interprets; this is the usual form for your interpreter cannot follow you. • Take into account that some interpreters may be more familiar with meetings, discussions and negotiations. If you are giving a speech, give the American English and have a little difficulty at first with British accents. Simultaneous interpreting is when you interpreter the text well in advance speak while the interpreter interprets and forewarn them of any changes. • Listen to how your interpreter interprets what you have just said. simultaneously, but special equipment If you have given a lengthy explanation but the interpreter translates is required which is expensive to hire. into only a few Spanish words, it may be that they have not fully Simultaneous interpreting is generally understood. Or they may be wary of passing on a message that is used only for large seminars and too blunt and will not be well received by the audience. conferences. • Avoid jokes. They will fall flat, embarrass you, and leave the audience puzzled. 58 Colombia Business Guide Business etiquette Business etiquette Colombia Business Guide 59

Return visits Useful Spanish phrases

Hello Hola Good morning Buenos días Good afternoon, evening, night Buenas tardes, noches Mr/Mrs Señor/Señora Doctor (used as a respectful title for Doctor/Doctora anyone with a university degree) Nice to meet you Mucho gusto How are you? Cómo está? Yesterday, today, tomorrow Ayer, hoy, mañana Please Por favor Thank you Gracias You’re welcome De nada I’m sorry Lo siento Excuse me Perdon/Disculpe Colombians will want to reinforce their Coffee Café business relationship with you by visiting the UK, once a deal has been or Milk Leche is likely to be done, so be sure to invite Tea Té them at the end of your first meeting if Water Agua appropriate. Indeed, they will probably be delighted to visit the UK, especially See you soon Hasta luego/Nos vemos pronto if it is for the first time. How much is it? Cuánto es? Colombians tend to leave arrangements One, two, three, four, five Uno, dos, tres, cuatro, cinco (such as visa processes) late, so remind your contacts frequently to follow the Where is…? Dónde está…? correct procedure. They may need help Toilet (Mens/Womens) Baños (Caballeros/Mujeres) with translation of personal material such as CVs and presentations. 60 Colombia Business Guide Business etiquette Business etiquette Colombia Business Guide 61

Top ten tips

1. Research and plan early 5. Think about language implications 8. Arrange a programme of visits in 9. Take part in a guided market visit Is there a market there for you? Make the effort to produce brochures the market To take advantage of travel grants, Is your competitive edge in the UK in Spanish – it makes a difference. If you are new to business in Colombia, local contacts, experienced mission transferable to Colombia? Also think about translation of parts it is strongly advisable to arrange a leaders and business networking, why Desk research via the internet, suppliers, of your website. programme of meetings through the not consider joining a group-guided customers, trade associations, trade local UK Trade & Investment office or and supported market visit with UK journal editors and exhibition organisers 6. Think about cultural implications other local contacts prior to travel. Trade & Investment? More details are can be free of charge. Make sure that your business cards are In planning your itinerary, allow time available at: www.ukti.gov.uk. up to date and any titles are included – at the end of your stay in Colombia to 2. Seek out sources of advice and Colombians place a lot of importance on pay a second visit to those potential 10. Follow up expertise early titles and good quality business cards. clients who have asked you to come Don’t forget to follow up and don’t let This should save you time and money back and see them again. the contacts go cold. on wasteful activity and help to Take business suits – Colombians in mitigate risk. the major business cities generally Be prepared to socialise and do Stay in touch with your Colombian wear formal suits to all meetings. working lunches. Do not over-cram contact/partner: don’t let relationships 3. Get in touch with a global your time with meetings. drift, and make sure that you visit the support network through UK Try to visit Colombians at their offices, market regularly. Trade & Investment rather than invite them to your hotel. Allow plenty of time between Find your local International Trade meetings, as the larger cities can get Adviser and overseas-based Trade 7. Think about your strategy very congested with traffic. Officer by going towww.ukti.gov.uk and It is usually best to have a local partner selecting “Find your local trade team”. or local presence. Think about your strategy – can your business model 4. Consider your pricing strategy support margin reduction or transfer Pricing must be competitive – US dollar of intellectual property? or pricing is the norm. 62 Colombia Business Guide Business etiquette Colombia Business Guide 63

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Published February 2012 by UK Trade & Investment © Crown Copyright URN 12/500 Colombia: Departments and major cities Colombia: Departments and major cities

MAGDALENA Puerto Bolivar

Riohacha

Santa Marta Caribbean Sea LA GUAJIRA Barranquilla ATLÁNTICO

Cartagena Valledupar CESAR

PANAMA Sincelejo Monteriá SUCRE

Turbo NORTE DE CORDOBA BOLÍVAR SANTANDER VENEZUELA Carepa Cúcuta

Bucaramanga ANTIOQUIA Arauca Puerto Berrio SANTANDER ARAUCA

Medellín Paz de Rio Puerto CHOCÓ Carreño Quibdó BOYACÁ CASANARE CALDAS Tunja Yopal Pacific Manizales CUNDINAMARCA Pereira Santa Rita Ocean Armenia Bogotá VICHADA MAGDALENA Puerto Bolivar RISARALDA Ibagué Villavicencio Riohacha QUINDÍO VALLE DEL TOLIMA 0 200 Kilometers CAUCA DISTRITO Puerto CAPITAL SantaBarrancomin Marta a Cali CaribbeanMETA Sea IníridaLA GUAJIRA Barranquilla Neiva ATLÁNTICO HUILA CAUCA San José GUAINÍA Cartagena Valledupar Popayan del Guaviare CESAR GAUVIARE NARIÑO Florencia PANAMA Sincelejo Pasto Monteriá Mocoa SUCRE VAUPÉS Mitú PUTUMAYO CAQUETÁ Turbo NORTE DE CORDOBA BOLÍVAR SANTANDER VENEZUELA Carepa Cúcuta ECUADOR Puerto ANTIOQUIA Bucaramanga Santander Arauca Puerto Berrio ARAUCA Key AMAZONAS La Pedrera SANTANDERBRAZIL

El Encanto Medellín Paz de Rio Puerto DEPARTMENT CHOCÓ Carreño Quibdó BOYACÁ CASANARE City with UK Trade & Investment office CALDAS Tunja Yopal Airport Pacific Manizales CUNDINAMARCA Pereira Santa Department capital city Rita PERUOcean Armenia Bogotá VICHADA Secondary city RISARALDA Ibagué Villavicencio QUINDÍO VALLE DEL LeticiaTOLIMA 0 200 Kilometers CAUCA DISTRITO Puerto CAPITAL Barrancomina Cali META Inírida Neiva HUILA CAUCA San José GUAINÍA Popayan del Guaviare

GAUVIARE NARIÑO Florencia Pasto Mocoa VAUPÉS Mitú PUTUMAYO CAQUETÁ

ECUADOR Puerto Santander AMAZONAS La Pedrera BRAZIL

El Encanto

PERU

Leticia