The Challenges
The automotive industry is critical to the Colombian economy, supporting almost 60,000 jobs. In addition, hundreds of micro-, small, and medium enterprises (MSMEs) depend on the local operations of global carmakers. But inconsistencies in how parts are treated by customs and inefficient information and appeals procedures at ports increased costs, with knock-on effects for consumers.
What We Did
The Alliance worked with the Colombian Customs and Tax Administration (DIAN) and the private sector to create a Center of Excellence to provide consistency in how customs classifies and treats components. The Center has become a virtual hub for specialised automotive industry knowledge within DIAN. By centralising and harmonising decision-making on an industry-specific basis, it has created a more fluid and operational relationship between the public and private sectors.
The Impacts
The Center is reducing delays and costs for importers while allowing border controls to concentrate on higher-risk shipments. It is a win for the government, the private sector, and the wider population. Aside from building unprecedented trust through public-private collaboration, it improves predictability, streamlines administrative processes, enhances Customs’ knowledge of rulings and improves the competitiveness of the Colombian automotive industry.
Colombia
