By means of Notice No. 17 dated April 20, 2016, the Colombian Central Bank amended the External Regulation DCIN 83, aiming at updating certain procedures related to international trade transactions and registration of foreign investments.
The Colombian Central Bank now allows cancelling the foreign exchange channel associated with international trade transactions (importations and exportations) by means of a dation in payment. Therefore, foreign exchange declarations, corresponding to the payment of importations or the refund of exportations, will include (i) the dation in payment as an alternative to complete the transaction through the foreign exchange market and (ii) the equivalent dollar value of the traded goods. When agreeing in a dation in payment the obligation of conducting foreign trade operations through the foreign exchange market will be accomplished.
Additionally, the Colombian Central Bank clarified certain procedures regarding international investments. First, amendments to Forms No. 15 (for companies) and/or Forms No. 13 (for branches), will have to be made electronically.
Second, registration of foreign investments (whether derived from the transfer of funds or any other type of investment) will be subject to the following rules:
- When the foreign investor -legal entity- acts through its legal representative, it is necessary to file a certificate of incorporation and good standing evidencing its capacity as such. The certificate must be issued by the relevant authority of the foreign investor’s domicile, and must be authenticated, legalized or apostilled.
- If the foreign investor grants a power of attorney to a third person, a copy of such power of attorney must be filed jointly with the documents to register the investment. The power of attorney must be duly authenticated, legalized or apostilled. If the power is granted in Colombia, the power of attorney must be authenticated before a notary public.
Amendments to the External Regulation DCIN-83 will be effective as of April 20th, 2016.