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📦 Goods of Colombia, under the terms of general note 34 to the tariff schedule

Goods of Colombia, under the terms of general note 34 to the tariff schedule

HS Code:

📦

Overview

Goods of Colombia under General Note 34 to the Harmonized Tariff Schedule (HTS) of the United States refer to products eligible for preferential tariff treatment under the United States-Colombia Trade Promotion Agreement (CTPA), implemented in 2012. This agreement aims to eliminate tariffs and other trade barriers on most goods traded between the two countries. Colombian goods span various categories, including agricultural products (e.g., coffee, flowers, and fruits), textiles, apparel, and industrial products. General Note 34 outlines specific rules of origin and eligibility criteria for these goods to qualify for duty-free or reduced-duty access to the U.S. market. Colombia is a significant trade partner in Latin America, leveraging its diverse production base and strategic geographic location to export a wide range of commodities and manufactured goods.

Total Trade Volume

USD 14.3 billion (exports to the U.S.)

Data from 2022

Source

United States International Trade Commission (USITC) and Office of the United States Trade Representative (USTR)

Tariff Analysis

Average Rate

0% (duty-free for most qualifying goods under CTPA)

Highest Rate

Up to 20% for non-qualifying goods or sensitive products (e.g., certain textiles or agricultural products outside CTPA rules of origin)

Lowest Rate

0% (duty-free for most goods meeting CTPA criteria under General Note 34)

Common Restrictions

  • Rules of Origin compliance (must be produced in Colombia or undergo substantial transformation)
  • Quota limitations on specific agricultural products (e.g., sugar, dairy)
  • Documentation requirements (Certificate of Origin for preferential treatment)
  • Exclusion of certain sensitive products from duty-free status unless specific conditions are met

Market Trends

Increased demand for Colombian agricultural exports

Growth in exports of coffee, avocados, and cut flowers to the U.S. due to duty-free access under CTPA, boosting rural economies in Colombia

2021-2022

Diversification into value-added products

Shift towards processed foods and textiles with higher profit margins, supported by tariff reductions, enhancing competitiveness in the U.S. market

2020-2022

Strengthening of U.S.-Colombia trade ties

Bilateral trade agreements and policy stability have encouraged long-term investments in export-oriented industries in Colombia

2019-2022

Recent Developments

Expansion of Agricultural Quotas under CTPA

The U.S. and Colombia agreed to revise quotas for certain agricultural products like sugar and beef, allowing increased duty-free access for Colombian exporters.

March 2023

Positive for Colombian farmers, with an estimated increase of USD 50 million in agricultural exports annually.

Digital Trade Facilitation Initiatives

Implementation of electronic certification systems for rules of origin under General Note 34 to streamline customs processes for Colombian goods entering the U.S.

July 2022

Reduces administrative delays and costs, improving market access for small and medium-sized exporters.

Sustainability and Labor Standards Compliance

Renewed focus on environmental and labor provisions under CTPA, with U.S. audits ensuring Colombian goods meet sustainability and fair labor criteria.

October 2022

Potential for temporary trade restrictions if non-compliance is found, though it also promotes long-term sustainable practices in Colombian industries.