Technical Analysis of DIAN Concept Rad. 2-2024-002966 – February 2024
Antidumping Duties on Products Manufactured in Free Trade Zones
DIAN Concept Rad. 2-2024-002966, issued in February 2024, addresses critical aspects of antidumping duties applicable to products manufactured in Free Trade Zones (FTZs).
Transformation and Tariff Classification
The production process in an FTZ involves transforming raw materials into new products, which changes the tariff classification of the final product. This transformation means that products manufactured in an FTZ may be exempt from trade defense measures such as antidumping duties. Antidumping duties are designed to protect domestic industries from imports sold at unfairly low prices. By altering the tariff classification, these products might not be considered direct imports, thus avoiding these duties.
National Goods Producers Register
The National Goods Producers Register is a procedure through which individuals or legal entities register their manufactured goods with the Ministry of Commerce, Industry, and Tourism, ensuring compliance with current regulations. This register is different from the Integration Certificate issued in an FTZ, which details the national, foreign, nationalized components, labor, among others.
Implications for Companies
For companies operating in FTZs, understanding this distinction is crucial. They must ensure their products are correctly classified and registered to legally support their foreign trade operations and clarify the transformation process within the FTZ.
DIAN Concept Rad. 2-2024-002966 clarifies the impact of product transformation in FTZs and its relation to antidumping duties. Companies must be well-informed about these regulations to ensure compliance and maximize their competitive advantages.
