La Latest reform to the Customs Statute has generated controversy, mainly due to the mandatory advance declaration of import or entry (in the case of free trade zones). However, there is a vital issue that has gone relatively unnoticed: the expansion of the scope of legal abandonment, creating new situations in which the Nation becomes the owner of the merchandise.

What was the scope of legal abandonment before Decree 659 of 2024?

Prior to this Decree, legal abandonment in imports occurred when the term of permanence of the merchandise in storage expired (one month extendable for an additional month) or when the merchandise remained in the place of arrival for a period of more than one month, counted from its arrival in the national customs territory.

Furthermore, once the abandonment had occurred, the importer had an additional month to legalize the merchandise by paying a ransom equivalent to 10% of its customs value.

What changed with the new Decree?

Three new grounds were created under which a declaration of legal abandonment may be made.

First, when no advance declaration is submitted, the submission of an initial declaration is permitted, paying a penalty of 1% of the FOB value of the merchandise, up to a maximum of 300 UVT. When neither an advance nor an initial declaration is submitted, the merchandise is subject to abandonment.

Second, there is an obligation to update the declarations before requesting a payment authorization, entry authorization, release or inspection. Failure to update the declarations will result in the legal abandonment of the merchandise.

Finally, the Dian has two business days for air transport and five business days for maritime transport, from the date of the declaration update, to determine whether an inspection is required. If an inspection is required, it must be completed no later than the day following its order, unless there is justification for a longer period. If the declarant does not appear for the inspection, the merchandise is legally abandoned.

The worrying thing is not only the creation of these new causes and the reduction of the time limits, but also the elimination of the possibility of legalizing the merchandise. This Decree establishes that merchandise abandoned for the above reasons cannot be recovered and will become the property of the Nation. This provision is contrary to what is intended by the Kyoto Convention, which rejects excessive sanctions for failure to comply with advance declarations, which are a recommendation and not a requirement of said Convention.

What happens to goods that are abandoned?

This Decree allows organizations or entities not previously considered, such as Territorial Associative Schemes (EAT), councils and indigenous, black, Afro-Colombian, Raizal, Palenquera and RROM communities, to receive abandoned goods as a donation.

In addition to donation, the Nation may dispose of the goods through sale, assignment, destruction and/or waste management, scrapping and payment in kind.

Source: Legal Matters