Colombia - Measures Relating to the Importation of Textiles, Apparel and Footwear (WT/DS461): Report of the Appellate Body

Summary

INTRODUCTION

Colombia appeals certain issues of law and legal interpretations developed in the Panel Report, Colombia – Measures Relating to the Importation of Textiles, Apparel and Footwear (Panel Report). The Panel was established on 25 September 2013 to consider a complaint by Panama with respect to a measure taken by Colombia affecting imports of textiles, apparel, and footwear.

This dispute concerns the imposition by Colombia of a “compound tariff” on the importation of certain textiles, apparel, and footwear classified under Chapters 61 through 64 of Colombia's Customs Tariff. The compound tariff was introduced by Decree of the President of the Republic of Colombia No. 074 of 23 January 2013 (Decree No. 074), which was subsequently “replace[d] and repeal[ed]” by Decree of the President of the Republic of Colombia No. 456 of 28 February 2014 (Decree No. 456). Decree No. 456 entered into force on 30 March 2014 for a period of two years, and was recently extended until 30 July 2016.

The compound tariff is composed of an ad valorem levy, expressed as a percentage of the customs value of goods, and a specific levy, expressed in units of currency per unit of measurement. While the ad valorem component of the compound tariff is 10% for all products regardless of their value, the specific component varies depending on the product and the declared free on board (f.o.b.) price in respect of two thresholds: (i) for products classified in Chapters 61, 62, and 63 (textiles and articles of apparel), and under tariff line 6406.10.00.00 of Chapter 64 of the Customs Tariff (uppers of footwear and parts thereof, other than stiffeners), the specific levy is US$5/kg when the declared f.o.b. price is US$10/kg or less, and US$3/kg when the declared f.o.b. price is greater than US$10/kg; and (ii) for products classified in Chapter 64 (footwear), with the exception of those under heading 64.06 (parts of footwear), the specific levy is US$5/pair when the declared f.o.b. price is US$7/pair or less, and US$1.75/pair when the declared f.o.b. price is greater than US$7/pair.