PBH / colombia (travelguide, pictures) / post

Import Export Business

My name is Martin, I live in the US and I am a US resident. I am in the import export business. I import products into the US from all over the world. I will be traveling to Barranquilla on Sept 12th to the 18th. I have a friend in Barranquilla that moved from the US 2 years ago and started a business in Barranquilla.
With the help of my friend and a few of his new Barranquilla friends, I would like to start a company in Barrinquilla with the intent of buying products and then exporting them to my company in the US. The reason I will need to start a company in Barranquilla is because the product suppliers will only sell the products within Colombia, as they can not sell outside their territories. So they can not sell directly to someone in the US.
My new company in Barranquilla will purchase the products from the product distributors. My Purchase Orders and payments will come from my Barranquilla company. I will have my own freight forwarder pick up the products in Barranquilla and ship them to the US for me. My freight Forwarder handles all the paperwork for me on having the product cleared in US customs, so that is not a problem. My freight Forwarder has a office in Cartagena, so they will arrange the pick up of the products, take them to the airport, and air freight them to me in the US.
What I will need to do after I create this company in Barrinquilla is open a Bank account. I would like to open it at Citibank, I see their is one in Barranquilla. Every time I purchase products in Barranquilla, I will need to wire money from my US business account to my Barranquilla business account at Citibank. I will then wire the money from my Barranquilla account to pay the distributors. My other concern is I will be purchasing large amounts of products at one time, so I will want to wire this amount from my US account to my Barranquilla account, then to the Distributor's account. I need for these transactions to be smooth, I have been told that sometimes when large amounts of money are sent into Colombia they may freeze your money due to money laundering concerns.
Here are my main questions.
Are their any issues I am unaware of in exporting products out of Colombia?
Is Barranquilla a free trade zone?
Do I have to pay any taxes, fees, or duties, to export products from Colombia?
I need to know everything about a US citizen opening a company in Colombia?
I need to know everything about opening a Bank account and know everything about wiring the money so I have no problems wiring the money.
Since I am buying the product in Colombia and then exporting it, am I exempt from taxes?
Thanks for all you help, Martin

By martin2mmg on Sep 9, 2007, 19:53 in Friendly Talkzone.

RAAAY says on Sep 9, 2007, 20:51:

1. Are their any issues I am unaware of in exporting products out of Colombia?
.................................Oh Yes

2. Is Barranquilla a free trade zone?
.................................No

3. Do I have to pay any taxes, fees, or duties, to export products from Colombia?
.................................Oh Yes

4. I need to know everything about a US citizen opening a company in Colombia?
................................ www.google.com

5. I need to know everything about opening a Bank account and know everything about wiring the money so I have no problems wiring the money.
................................Only after 4. is resolved.

6. Since I am buying the product in Colombia and then exporting it, am I exempt from taxes?
................................What type of product ?

.........Its useless to argue with ignorance

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goin_south says on Sep 9, 2007, 21:33:

Better do what RAY says. Google.
there's about five people on this forum who really might know some shit, in answering some - a few - of your concerns. And, there will be others that will pretend to know. But, there must be a website/forum directed exactly at your concerns. If you find out, why don't you come back and post it here. Thanks.

Ciao! Gustav.

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goin_south says on Sep 9, 2007, 21:40:

.....you mean, like you pretend to know football?
.
.
.lol
any dawg can play dead.
check yer pm.

Ciao! Gustav.

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christobeldawg says on Sep 9, 2007, 21:50:

I definitely know college football better than the import\export business. basically, if there is a subject that does not pay, I know it. jaja.

admittedly, arriving can feel great too

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goin_south says on Sep 9, 2007, 22:02:

Mujeres???

Ciao! Gustav.

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goin_south says on Sep 9, 2007, 22:12:

the ultimate paradox, eh?
'I don no'
'It no pay'.
lol

Ciao! Gustav.

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goin_south says on Sep 9, 2007, 22:40:

Ciao! Gustav.

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pilotguy says on Sep 10, 2007, 06:02:

Maybe Raay is a pain in the ass........ but...... he is correct....... on this...... :) Joe

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RAAAY says on Sep 10, 2007, 06:15:

Pilot.......in a tither..... because I ignored your e-mail....??

.........Its useless to argue with ignorance

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strata2woman says on Sep 10, 2007, 08:57:

Yes, there is a Free Zone in Barranquilla. La Zona Franca. Here's your link:
http://www.colombiaexport.com/zonafbaq/zonafbaq.htm [in English]

You will need to register as a Persona Juridica with the Barranquilla Chamber of Commerce.
Be prepared for a long paper hassle. We in Barranquilla want and need more enviromental friendly busines and more employment. Good luck in your endeavour.

- "con sombrero vueltiao y abarcas de tres puntá"

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Tinto (Moderator) says on Sep 10, 2007, 09:21:

From what I understand, you'll need a cedula to open a bank account. A few people have done it without a cedula but that seems rare.

Also, check out http://www.proexport.com.co. Their job is to encourage exports and to help people navigate the ropes. You'll also find more info on the "free trade zones."

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Gator says on Sep 10, 2007, 09:38:

Based on your post:

1. Hire a damn good, knowledgeable Colombian attorney

2. Hire a damn good, knowledgeable CPA (contador público). To the jackass who sent me a PM Answer: NO, CPA does not mean Colombian Pilots Association, even though there is such an animal.

You need a lot of basic information that your post indicates you do NOT have. The first thing they try will be, "A ver cuato dinero tiene usted." You need to say, "Los documentos están en poder de mi abogado. Seriously have you thought this through? I had a business (agriculture) for years and it was complicated-especially taxes and employee benefits.

"Brevior Sltare Cum Deformibus Mulieribus Est Vita!" .

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PC says on Sep 10, 2007, 13:29:

I ran an import/export business for a couple years in Colombia. I must say it was not a good experience. The government restrictions were so severe and so difficult that I just had to shut it down.

For example, I worked with clients in India who always wanted samples. The cost of sending even a $10 sample was over $400 after including the exportation inspection and shipping fees. Fedex alone for a 1 ounce envelope was $80 US. Then the inspection and taxes had minimum fees.

When I did this same thing from the US, it cost me nothing to send out a sample except the fedex fee of about $20-$30.

Importing was it's own nightmare. Even a small commercial imporation is fraught with red tape galore and huge fees and waiting periods. After 2 years I gave it up. Just was not worth it. I had to lay off my whole office staff and close the business down.

Just could not turn a profit on my small scale of about $10-20,000 per month. I think you have to have a pretty large scale operation to be able to survive in import export operations in Colombia. This is because there are a lot of "fixed" and minimum fees that add up to a significant percentage of your inventory costs unless you can operate on a large enough scale to emeliorate those minimus.

Good luck, you will need it.

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vicshere says on Sep 11, 2007, 11:02:

PC man you have hit the nail on the head good info and very true...almost any business in Colombia is hard to turn a profit....if it the employee or the customers aren't stealing it is the government.....robbery from 3 different angles is hard to deal with in any country especially Colombia

listo

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rmykita says on Sep 12, 2007, 10:49:

Martin,

I believe you can do this. My company runs well here, and so does my friends - she has a factory in China, and she imports to Colombia...she lived in NYC for many years and is exploring an entry into the US Market. I would be happy to set up a teleconference. We are in Bogota, however, Barranquilla is under the same jurisdiction. Are you interested? She has a lot of experience, and if you get a long, maybe something fruitful could come! Email or Call

Best,

Ryan
ryan_mykita at hotmail.com
3168575446

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