Colombia’s tax agency DIAN is to monitor companies in Export Processing Zones more closely to ensure they are meeting their obligation of job creation and investment, said the trade minister.
“DIAN is keeping an eye on Export Processing Zones to verify whether or not they are doing what they promised,” said Trade Minister Sergio Diaz-Granados in an interview with W Radio Tuesday.
Diaz-Granados added that if this is not the case, the penalty would be that companies would have their special treatment taken away.
Companies located in Free Trade Zones — often located near air and sea ports –receive preferential treatment in terms of taxes and customs.
The end of year studies recently carried out by Colombia’s central bank on Export Processing Zones (EPZs) indicate that the system is not creating the promised employment and investment opportunities.
The minister said “It is the intention of the government to modify the system of agreement of recent years so that it be more demanding in terms of capital and employment.”
The most recent reports reiterate those published by Colombia’s central bank in May, which also raised concerns that EPZs were not delivering on their promises in terms of job creation and investment.
In the radio interview, Diaz-Granados also discussed the free trade agreement between Colombia and South Korea, saying that the motor vehicle industry will not be affected, and that he foresees Colombia exporting cars to Mexico and Brazil.
