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Restrictions on data

COLOMBIA

Since 2008

Chapter Data policies  |  Sub-chapter Restrictions on cross-border data flows
Law 1581 of 2012 (as regulated by decree 1377 of 2013)

Law 1266 of 2008 (as regulated by decrees 2952 of 2010 and 1727
of 2009)
Pursuant to Law 1266 of 2008, personal data may not be transferred outside of Colombia to countries which do not comply with the adequate standards of data protections. This restriction does not apply in the following cases:
- when there is an express authorisation by the data dubject;
- when the information relates to medical data as required by issues of health and public hygiene;
- for banking operations; and
- for operations carried out in the context of international conventions which Colombia has ratified.
Coverage Horizontal
Restrictions on data

COLOMBIA

Reported in 2017

Chapter Data policies  |  Sub-chapter Restrictions on cross-border data flows
Draft legislation on data localisation
It has been reported that Colombia's National Protection Office (NPO) is considering data localisation or other barriers to data flows as part of a cloud services procurement project for government agencies. Early drafts show the NPO is considering a vague “adequacy” assessment to decide which countries provide adequate data protection. The NPO has reportedly prepared a draft list of “adequate” countries without detailing how these countries were assessed.
Coverage Cloud services
Establishment restrictions

COLOMBIA


Chapter Business mobility  |  Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Decree 834 of 2014 and Resolution 4310
No direct quotas are applied. However, Colombian Labor Law states that companies with more than 10 employees, Colombian nationals must occupy at least 80% of all managerial level positions and 90% of non-managerial positions.
Coverage Horizontal
Establishment restrictions

COLOMBIA


Chapter Competition policy  |  Sub-chapter Other restrictive practices related to competition policy
Lack of independence of the regulator
According to a report, Colombia has not yet achieved effective separation between regulation and effective policy making in the telecommunication sector, increasing the risk of political interference in the regulator decisions.
Coverage Telecommunication sector
Establishment restrictions

COLOMBIA


Chapter Competition policy  |  Sub-chapter Competition
Poor enforcement of wholesales obligations
It is reported that the telecom regulator in Colombia lacks of monitoring, enforcement or sanctioning powers over infractions to wholesale obligations for fixed broadband markets.
Coverage Telecommunication sector
Establishment restrictions

COLOMBIA


Chapter Competition policy  |  Sub-chapter Competition
State Owned Enterprise (SOE)
Colombia does not have a single incumbent, but different local ones. For instance, Empresa de Telefonos de Bogota, Emcali and Metrotel are the incumbent operators serving Bogota, Cali and Barranquilla, respectively. Most of these local incumbents are state owned entreprises.
Coverage Telecommunication sector
Establishment restrictions

COLOMBIA


Chapter Intellectual Property Rights  |  Sub-chapter Copyright
Copyright inadequately enforced
It is reported that, in terms of investigations, Colombia’s success against counterfeiting and IPR violations is limited to specific isolated events and seizures.
Coverage Horizontal
Establishment restrictions

COLOMBIA


Chapter Intellectual Property Rights  |  Sub-chapter Copyright
Law on Copyright - Law No. 23 of 28 January 1982
Colombia does not provide for clear fair use/fair dealing exceptions. Chapter III of Law No.23 on Copyright lays out a closed list of limitations and exceptions to copyright infringement.
Coverage Horizontal
Establishment restrictions

COLOMBIA

Reported in 2015

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
Restriction to foreign participation
According to reports published by the United States government, foreign participants in Colombia’s telecommunications market continue to raise concerns about the regulatory treatment in the mobile market. Barriers include high license fees (USD150 million for a long distance license) and a system of subsidies where, for example, long-distance telephone service subsidizes local telephone service.
Coverage Mobile sector
Establishment restrictions

COLOMBIA

Reported in 2010

Chapter Investment  |  Sub-chapter Restrictions on board of directors and managers
Decree 834 of 2014 and Resolution 4310
Colombian Labor Law states that companies with more than 10 employees, Colombian nationals must occupy at least 80% of all managerial level positions and 90% of non-managerial positions. This restriction extends to directors and executive officers if they are employees.
Coverage Horizontal
Fiscal Restrictions

COLOMBIA

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Requirement to surrender patents, source codes, trade secrets
National Copyright Directorate legislation
Colombia's National Copyright Directorate requires that IT providers contracting with the government must provide source codes to the entities that they are providing services to.
Coverage IT services
Fiscal Restrictions

COLOMBIA

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
WTO Government Procurement Agreement
Colombia is not a signatory to the WTO Agreement on Government Procurement, but it has been an observer to the WTO Committee on Government Procurement since February 1996.
Coverage Horizontal
Source
  • USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
Restrictions on data

COLOMBIA

Reported in 2017

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Draft legislation on data localisation
It has been reported that Colombia's National Protection Office (NPO) is considering data localisation or other barriers to data flows as part of a cloud services procurement project for government agencies. Early drafts show the NPO is considering a vague “adequacy” assessment to decide which countries provide adequate data protection. The NPO has reportedly prepared a draft list of “adequate” countries without detailing how these countries were assessed.
Coverage Cloud services
Fiscal Restrictions

COLOMBIA

Since 2003

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Law No. 816
In 2003, Colombia introduced preference margins for domestic suppliers and foreign suppliers that use Colombian goods, materials or personnel. Law No. 816 of 8 July 2003, which aims to provide support for the domestic industry, allows the granting of a preference margin of between 10% and 20% to offers of Colombian goods or services and between 5% and 15% for offers of foreign goods and services that incorporate Colombian components or professional, technical and operating services. If the offer of a foreign bidder is on equal terms with that of a domestic bidder, the contract is awarded to the domestic bidder or to the foreign supplier that uses domestic components.
Coverage Horizontal
Source
  • WTO Trade Policy Review Report by the Secretariat, Colombia, Document WT/TPR/S/265/Rev.2, 1 August 2012
Fiscal Restrictions

COLOMBIA

Since January 2017, entry into force in January 2018

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
Tax reform
In January 2017, Colombia enacted a tax reform which imposes a VAT on certain foreign digital services and intangible goods, through a withholding mechanism. The services concerned are audiovisual services, platform service for digital distribution of mobile applications, provision of online advertising services, and teaching or distance training supply. Credit and debit card issuers and other payment processors will have to withhold Colombian VAT before payment is made from the resident to the supplier. The VAT rate is 19%.
Coverage Certain foreign digital services