Doing Business in Colombia? We Can Help 2 Colombia Business Guide Colombia Business Guide 3
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Trade: Exporting to the world Colombia 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 Bribery and corruption 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.