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L ib ertad y O rd e n


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MINISTER OF TRADE A Letter from the Minister of Trade, Industry and Tourism


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A Letter from the Minister of Trade, Industry and Tourism In Colombia, free trade zones have become the firstline of development to face the challenges of the XXI century. They have been effective in attracting investment and generating employment while being important centers for regional progress. With 56 years in existence, they have evolved with a special shift in 1991, when the Minister of Foreign Trade at that time and current President of the Republic, Juan Manuel Santos signed the formation of the Private Free Trade Zones which led to the development of new areas for industry, commerce and services with special custom and tax regulations in Bogota, Rionegro, Palmira, Cartagena and La Tebaida. With the rise of the national economy, free trade zones grew dynamically throughout the Colombian territory as logistics and business development centers. This is echoed in the 90 that have been approved under the current tax and customs system for a total of 101 free trade zones already established in Colombia. We currently have the largest number of free trade zones in Latin America. Projects are being developed in almost all regions of Colombia in order to improve trade logistics and directly reach markets benefiting from the free trade system, thus, obtaining a greater competitive advantage. A boom that has forced builders to wage on these business centers as new focus for investment and industry growth. Under the new regime, free trade zones have become an effective tool to attract investment representing a figure of USD 11,138 million*. They have also contributed to the generation of 16,000 new direct jobs and 142,000 new indirect jobs. We believe that this figure will continue to grow driven by investment in infrastructure and the consolidation of free trade zones focused on services which are also known as a source of employment. Free trade zones are a business model that will undoubtedly transform the industrial sector through incentives and benefits such as the flat income tax rate of 15%, the exemption in customs duties and the facilitation of importing and exporting. These are all key factors to address the needs of today’s market that is constantly changing in the face of free trade agreements as well as the interests of the different sectors to improve logistics, the need of being present in other countries and the advantages of tariff preferences. Thanks to these incentives, the country’s strategic location, its excellent connectivity to the Americas, Europe and Asia, and the possibility of attracting companies to use Colombia as a platform for the distribution of their products internationally, the free trade zones activity represents a pillar of competitive development of our regions and an excellent opportunity on the road to the nation’s prosperity. *Exchange rate 2,900 COP/USD CECILIA ÁLVAREZ-CORREA Minister of Trade, Industry and Tourism


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A LETTER FROM THE PRESIDENT PROCOLOMBIA Colombia has been projected as one of the most promising destinations for businesses in the last decade. The Government adopted policies that created a dynamic internal market and a growing trade integration with the world. Foreign Direct Investment joins as one of the elements that reflect the country’s momentum: a decade ago, the value of FDI was USD 1,720 billion and at the close of 2014, it reached USD 16,257 billion, according to the Ministry of Trade, Industry and Tourism. Major companies decided to invest in our country, and moreover, expand their businesses towards other markets, motivated by the safety and benefits that the Colombian law grants to foreign investors, among other reasons. In the last ten years, the Gross Domestic Product (GDP) recorded an average growth of 4.8%. Additionally, one of its most attractive points is an internal market of 47 million people, 55% of whom is under 30 years of age and a middle class that grew its GDP per capita from USD 2,479 in 2000 to USD 7,930 in 2014. Moreover, the current free trade agreements with Colombia open the doors for current or potential companies in Colombia to obtain the tariff benefits that the nearly 50 markets with 1.5 billion consumers offer, to which these companies have privileged access. In recent years, the three main credit rating agencies (Standard and Poor’s, Moody’s, and Fitch Ratings) granted an investment rating to Colombia. Additionally, the World Bank’s Doing Business qualified Colombia as the fourth friendliest country in the region for doing business and the country that has carried out the most positive reforms to this end. Development, stability, dynamism, and potential are some of the attributes that the main international financial institutions and multilateral bodies use to refer to Colombia, considering it a trustworthy and attractive partner for foreign investors. Colombia also has an optimal regulation of free trade zones, strengthened by the enactment of Law 1004 of 2005, with which the country positioned itself in the orbit of global trade and significantly elevated the inflow of foreign investment and foreign exchange, which has also generated new jobs and an increase in the development of our industry. The current publication offers privileged information about the potential, opportunities, and advantages that the Free Trade Zones in Colombia provide to investors who are interested in entering the country.   I hope you will find in ProColombia an ally able to provide tailored information and legal advice, through our network of international offices in 26 countries and throughout Colombia. MARÍA CLAUDIA LACOUTURE President of ProColombia


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COLOMBIA: A competitive location with easy access to global markets More than 3,300 vessels in regular service originate their routes from the Colombian ports, both direct and connecting, run by more than 30 shipping companies and destined for around 480 ports around the world. More than 165 million import and export tons were transported by sea in 2013. Country United States Panama Mexico Ecuador Peru Venezuela Spain El Salvador Brazil Chile Dominican Republic 11h15m 6h05m Toronto Weekly flights 254 252 79 78 73 47 32 32 29 26 18 14 11 10 9 8 7 7 7 7 5 5 4 3 1,017 Source: OAG, December 2014. Frankfurt Costa Rica Curacao Cuba Aruba Argentina Germany France New York 5h35m Los Angeles Paris 10h40m 9h40m Madrid 8h20m 3h00m Mexico City Miami 4h45m 1h20m 1h30m Quito Caracas Bolivia Guatemala Canada 3h00m Santiago de Chile Lima São Paulo 5h45m Puerto Rico United Kingdom Portugal Total 5h00m Buenos Aires 6h15m The information takes into account the routes that originate from the ports of Barranquilla, Buenaventura, Cartagena, and Santa Marta. Source: Routes and Tariffs - Tools for the Colombian Exporter. Processed by ProColombia.


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TABLE OF CONTENTS Ministry of Trade, Industry and Tourism ProColombia services for investors ANDI, Chamber of Free Trade Zone Members 8 9 12 FREE TRADE ZONES Andean Region Caribbean Region Western Region Pacific Region 15 37 69 81 SECTORS Agribusiness BPO, Software & IT Services Infrastructure and logistics Automotive Construction materials Cosmetics and cleaning products Metalworking industry Hotel and tourism infrastructure Healthcare 100 102 103 104 105 106 107 108 109


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MINISTRY OF TRADE, INDUSTRY AND TOURISM L ibert y O rd e n The mission of the Ministry of Trade, Industry and Tourism is to support entrepreneurial activity, production of goods, services and technology, as well as the management of the country’s tourism areas, with the aim of improving competitiveness, sustainability and encouraging the creation of added value. In this way, the Ministry seeks to consolidate national production, both domestic and in foreign markets, at the same time aiming for sufficient competition to benefit consumers and tourists, contributing to an improved global position for Colombia and quality of life for Colombians. The Ministry creates, adopts, directs and coordinates general policies for the economic and social development of the country, related to competitiveness, integration and development of productive sectors of industry, as well as micro-, small- and medium-sized companies, foreign trade of goods, services and technology, foreign investment promotion, domestic trade, and tourism. The Ministry of Trade, Industry and Tourism is made up of attached and associated entities including ProColombia, Bancoldex, Artisans of Colombia, the Superintendence of Industry and Trade, the Superintendence of Companies, Central Council of Accountants, National Guarantee Fund, National Institute of Metrology and the Technical Council of Public Accounting. 8 FREE TRADE ZONES DIRECTORY


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PROCOLOMBIA’S SERVICES FOR INVESTORS WHO ARE WE? PROCOLOMBIA is the state body responsible for the commercial promotion of Colombia as a destination for foreign direct investment, Colombian investment abroad, international tourism, and the export of nontraditional Colombian goods and services. Through its network of offices, abroad and in Colombia, it provides support and advice, information about added value, and support in the exploration of commercial opportunities. It promotes the realization of international business by identifying market opportunities and creating strategies for exploiting these, promoting the internationalization of companies, supporting the creation of action plans, encouraging contact between businesspeople through promotional activities as well as in investments and international tourism; supplying specialized services to foreign businesspeople who are interested in acquiring Colombian goods and services or investing in Colombia and establishing partnerships with domestic and international public and private entities. This allows it to increase the availability of resources that support the various business initiatives that the organization promotes aimed at developing and improving its portfolio of services. SERVICES FOR INVESTORS Invest in Colombia app Specialized websites Support and follow-up to established Investors SIFAI System enabler to attract investment International seminars about Colombia Matchmaking forums Promotional activities Business Intelligence Guidance Regional Investment Promotion Agencies - APRI Tailor-made intelligence Regional Investment Promotion Agencies - APRI Coordination and development of investment agendas Media outreach PROCOLOMBIA.CO 9


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PROCOLOMBIA CANADA Montreal, Toronto, Vancouver UNITED STATES San Francisco, Miami, Los Angeles, Washington D.C. New York, Houston, Atlanta, Dallas, Chicago UNITED KINGDOM FRANCE PORTUGAL Mexico City, Guadalajara MEXICO CARIBBEAN NORTH TRIANGLE (Guatemala, Honduras, El Salvador) COSTA RICA (Panama). COLOMBIA ECUADOR PERU Pto. Rico, Dominican Republic, Trinidad and Tobago VENEZUELA BRAZIL CHILE ARGENTINA


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ANDI CHAMBER OF FREE TRADE ZONE MEMBERS The Chamber of Free Trade Zone Members is part of the NATIONAL ASSOCIATION OF INDUSTRIALISTS OF COLOMBIA (ANDI). Users, industrial and trade operators of Free Trade Zones can join it, provided that they are affiliated to ANDI and also demonstrate an interest in joint activities that favor the harmonious development of Free Trade Zones in Colombia. • Advising members on the correct application of legislation. • Unifying legal opinion. • Defending access to Free Trade Zone products by countries with whom an international agreement is in place. • Representing and supporting Chamber members or their respective users before the State authorities. Members of the Chamber must subscribe to, Additionally, hold monthly meetings with the apply and disseminate the ANDI Declaration of heads of operation to analyze and seek solutions for the different operations that are undertaken Ethical Principles. in different regions, and periodically issue a manual of criteria for this purpose. The Chamber’s activities are focused on: • Proposing rules and procedures that promote the development of the Free Trade Zones. • Defending legal stability for the companies that make up the Chamber. • Promoting the ethics and good commercial practices of the Free Trade Zones. • Carrying out studies on the sectoral behavior of the system. • Issuing bulletins with statistics on the Free Trade Zones’ operations. • Creating special committees to review the legal and operational aspects that are relevant to the Free Trade Zones’ activities. Support the preparation of programs for business missions to other countries (either public or private). Coordinate global conferences and seminars abroad to promote Colombia, such as PROCOLOMBIA, to communicate the opportunities that Free Trade Zones offer to foreign investors. Create training courses on different themes and to organize the National Congress, in which national and foreign business people will take part. 12 FREE TRADE ZONES DIRECTORY


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FREE TRADE ZONES BY REGION Atlantic Ocean 8 9 7 10 2 5 11 4 14 3 Caribbean Region / Free Trade Zone 6 1 Venezuela 6 Atlantico La Cayena. ZOFIA. Barranquilla. Del Rio. 7 Bolivar Pacific Ocean 12 16 Santelca. Central Park. Port of the Americas. La Candelaria. Zofranca. Dexton. 8 La Guajira 9 Magdalena Brisa. Las Americas. Tayrona. Santa Marta. Palermo. 14 Eastern Region / Free Trade Zone Ecuador Brazil 10 Antioquia Rionegro. Uraba. Zofiva S.A.S. Peru 11 Quindio Coffee Cultural Landscape. 12 Risaralda Pereira International. 13 Caldas Andean. Andean Region / Free Trade Zone Pacific Region / Free Trade Zone 1 Norte de Santander Cucuta. 2 Santander 3 Boyaca Santander. Agroindustrial GEA. 4 Tolima 5 Cundinamarca Industrial and Logistical Free Trade Zone of Ibague. 14 Huila Southern Colombian. 15 Cauca Intexzona. Metropolitan. Tocancipa. Bogota. Zofrandina S.A.S. FTZ Operator User S.A.S. (IFOU S.A.S). Western. International Cauca. Southern Park. 16 Valle del Cauca Celpa. Pacífico region. Palmaseca. Zonamerica. PROCOLOMBIA.CO 13


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ANDEAN REGION Cundinamarca, Boyaca, Santander and Norte de Santander Characteristics: Population: (2014, 2005 census) Bogota D.C. Cundinamarca Boyaca Santander Norte de Santander 7,776,845 2,639,059 1,274,615 2,051,022 1,344,038 Source: DANE (The National Administrative Department of Statistics). Inflation Rate by City: City Bogota D.C. Tunja Bucaramanga Cucuta National Total Per year Jan. - Jul. 2010 3.25 1.93 3.91 2.42 3.17 2011 3.21 4.31 5.76 5.00 3.73 2012 2.43 2.16 3.48 2.01 2.44 2013 2.43 1.53 2.08 0.03 1.94 2014 3.77 3.60 4.32 2.87 3.66 Source: DANE (The National Administrative Department of Statistics). PROCOLOMBIA.CO 15



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