ANNOUNCED AS TEMPORARYNo
On 24 October 2016, the Ministry of Commerce, Industry and Tourism of Colombia issued Decree 1687 eliminating peanuts (HS Code 1202.42.00) from the Andean Price Band System. This decision led to the elimination of the variable import duty established on this good and leaving the fixed import tariff of 15%.
Andean Price Band System
The Andean Price Band System (i.e. Sistema Andino de Franja de Precios) is a mechanism adopted by Decision 371 of the Andean Community that aims at stabilizing the import cost of a special group of agricultural products characterized by marked instability in its international prices.
Stabilization is achieved by increasing the ad valorem tariff when the international price is below the floor level and lowering the tariff to zero when the price is above the ceiling. That is, the price band is equivalent to converting the tariff into a variable factor that is automatically adjusted to counteract external fluctuations in the international price.
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