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  • Foreign Trade Logistics and Customs, Legal Update

Termination of the temporary export for passive improvement modality

  • October 23,2023
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TERMINATION OF THE TEMPORARY EXPORT FOR PASSIVE IMPROVEMENT MODALITY

On September 18, 2023, the National Directorate of Taxes and Customs (“DIAN” for its acronym in Spanish) issued an opinion in which it analyzed the feasibility of terminating a temporary export for passive improvement with reimportation for passive improvement when the term of stay abroad has expired.

In this regard, DIAN pointed out that, while Article 371 of Decree 1165 of 2019 establishes the reimportation of the goods as one of the events that lead to the termination of the temporary export for passive improvement, Article 409 of Resolution 046 of 2019 specifies that, for this purpose, the Electronic Information Service or the competent official will verify that the reimportation is carried out within the period established for that specific type of export, which corresponds to the one indicated in the export declaration and can be extended once for an additional year.

Based on the above, DIAN concludes that, once the authorized term for customs authority for the reimportation of the merchandise has expired, the temporary export for passive improvement cannot be terminated with reimportation for passive improvement. In that case, the merchandise must be subjected to other import modalities.

Author: Diana Ramírez I dramirez@lloredacamacho.com I Foreign Trade, Logistics & Customs

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Ignacio Santamaría
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Diana Ramírez
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