Customs Penalties in Columbia

(Sea Venture Volume 19)

As of the 1^st July a new customs decree will enter into force in Colombia. According to the new decree (no. 2685) the following penalties will apply:

50-100 x minimum monthly salary¹ (approximately US$ 7,500 to US$15,000 per event) for:

• Arrival in non-approved ports
• Subtraction of cargo, or hiding cargo from customs
• Non-delivery of cargo within the time periods stated in the decree
• Failure to inform customs of over-landed or short-landed cargo and cargo weighing more or less than the weights stated in the cargo documentation.

200% of freight in the following cases:

• Non-presentation of documents for cargo, including manifests, bills of lading, airway bills, house bills of lading, house airway bills.

100% of freight for the relevant cargo for:

• Non-transmittal of documents in an electronic manner within the time frames mentioned in the decree before arrival of vessel²
• Failure to on-carry short-landed cargo in the next available vessel.

Up to 20 x minimum monthly salary for each event (i.e. each bill of lading mentioned in the manifest, each airway bill in manifest, each passenger³):

• Not advising customs of vessel's arrival
• Presenting manifests with errors or omissions
• Not giving passengers the relevant customs forms.

Up to US$ 3,000 per event for:

• Not transmitting export cargo-manifest within 24 hours after vessel has left
• Failure to present a hard copy of the documents required to customs.
• customs of over-landed or short-landed cargo and cargo weighing more or less than the weights stated in the cargo documentation.

100 x minimum monthly salary per event (approx. US$15,000) or suspension or cancellation of operating licence of the carrier for:

• Delivering less cargo than that mentioned in the cargo documentation in in-bound transport cases
• Non delivery of cargo to customs warehouse or free zone
• Non performance of in-bound transport⁴.

Repeat Offenders:

• If a carrier is liable for two or more fines in a period of one year it will lead to the suspension of the operating licence in Colombia for three months
• If the carrier is suspended more than twice in one year the operating licence will be permanently cancelled.

The Club covers fines imposed in Colombia in respect of misdeclaration of cargo. However, given the harsh nature of the penalties imposed and criteria applied by the authorities, Members must be particularly careful in respect of instructions given to their agents and personnel concerning the drawing up of documentation for cargoes bound for Colombia. Infringements can result in suspension or loss of licence to trade in Colombia and this is not a matter that is likely to be covered by the Club.

By way of illustration, all consignments destined for Colombia must be described on the freight document, ocean bill of lading, cargo manifest or any other shipping document in the same manner as they appear in the signed or legalised commercial invoice. It is advisable for the Member or their agents to request a copy of the invoice before the cargo manifest and bill of lading are prepared. It has been known that very broad descriptions of cargoes such as ''electrical equipment'' or '' household goods'' have not been considered an accurate description of the cargo by the local customs and the authorities have retained cargo and imposed fines as there was no description of the particular type of equipment or goods covered by the bill of lading. Generic descriptions of cargoes should, therefore, be avoided as they will give the local authorities reason to impose fines.

Members can take positive steps to show that they have acted as a ''prudent uninsured'', and thereby maintain cover, by establishing procedures with instructions to their agents concerning the way in which documentation in respect of cargo bound for Colombia is prepared. The agents should also be made aware of the risks run if they fail to comply with these instructions. A policy should also be adopted in respect of inland transportation or consolidation of cargoes bound for Colombia ensuring, at all times, that a careful and consistent description of the cargo is maintained in all the documentation to be presented to the customs authorities.

 ¹Some penalties are calculated by reference to the official Colombian minimum wage
²Wrong transmittal of documents is considered as non-transmittal of documents
³This equates to US$ 3.000 per event
⁴It is advisable for members to consider the position very carefully before accepting cargo to inland destinations in Columbia or to the free zones. The port of discharge should be the preferred final destination.