NEW INTERNAL CONSULAR TAX ON IMPORTS OF HOME APPLIANCES/PAYMENTS OF US DOLLAR DRAFTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00423R001700840005-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 1
• Document Creation Date: November 9, 2016
• Document Release Date: December 10, 1998
• Sequence Number: 5
• Publication Date: January 24, 1955
• Content Type: REPORT

Approved For Release W
INFORMATION REPORT
T erial contains information affecting the
National the United States within the
meaning of the Espi s, Title 18, U. S. C.
PREPARED AND DISSEMINATED BY
Secs. 739 and 794, the transmi evelation
of which in any manner to an unauthon
CENTRAL INTELLIGENCE AGENCY
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COUNTRY Colombia
REPORT NO.
SUBJECT
Imports of Home
New Internal Consular Tax
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DATE ACQUIRED (By source) DATE OF INFORMATION (Date or dates, on or between which,
events or conditions described in report existed)
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Nov Dec 5
THIS IS UNEVALUATED INFORMATION
SOURCE
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1. The government has issued a new tax decree based only on imports. This tax
is purely internal and is entitled "Consular Tax". Previously a "consular
tax" of three percent was charged on all imports but now the rate has been
increased to 83%. The tax is on the FAS value of the merchandise.
2. Import duties on such merchandise have not been altered as any change in
the import routine might call for an investigation by shippers and this
would be embarrassing to the government.
3. Because of this jump in the "Consular Tax", imports of refrigeration
equipment (home and commercial)., electric ranges, waterheaters, washers,
and all small electrical home appliances, are impossible. Gas, kerosene
or gasoline ranges are not included in the new edict.
4. This new rate of tax will practically force many importers out of business
as the Public will not pay the new compulsory increase in retail prices.
The price increase of our net landed cost is two Colombian pesos for each
US dollar on the FAS value. The old price could be figured at Colombian
pesos 3.30 to US$1. net landed at Cartagena. The new price figures at
5.30 Colombian pesos for US$l. This is an increase of over 66% on the
net landed cost and is much more than our gross profit based on the old
import figures.
5. There are rumors that the new regulations insofar as refrigeration equip-
ment is concerned, will be lowered when the import control board reopens
on 10 Jan 55. It was closed in December 1954 for what was officially
called a vacation for the employees.
6. 'While definite proof of government figures is difficult to obtain, we
understand that about US$85 million is unpaid for imported merchandise.
Nearly all of this merchandise has been paid for in Colombian pesos to
the collecting banks but no foreign exchange has been made available to
pay the drafts.
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