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Tariff classification, customs valuation and advance rulings in Colombia: binding DIAN rulings, the Andean Value Declaration and valuation fines

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Last verified: 2026-10-26 · Status: Stable

Colombia classifies goods under the Harmonized System as applied in the Andean Nandina nomenclature and values imports under the WTO Valuation Agreement and Andean Decision 571. Importers can ask DIAN for a binding advance ruling on classification, valuation criteria, origin and other matters, issued within two months of a complete request. Every import needs an Andean Value Declaration unless an exception applies, and declaring a customs value below the correct one is fined 50 percent of the difference under Ley 2586 de 2026.

USD figures use the TRM (tasa representativa del mercado) of COP 3,158.43 per US dollar, valid 24 to 26 October 2026, from the official TRM series certified by the Superintendencia Financiera and published on the national open data portal. Amounts in UVT use the 2026 UVT of COP 52,374 (DIAN Resolución 000238 de 2025). Conversions are for orientation only.

Key facts

Term for DIAN to issue an advance ruling	2 monthsDecreto 1165 de 2019 art. 300, as of 2026-10-26 · in force
Term for DIAN to issue an ordinary classification ruling	2 monthsDecreto 1165 de 2019 art. 305, as of 2026-10-26 · in force
FOB value from which an Andean Value Declaration is required	5000 USDDecreto 1165 de 2019 art. 327, as of 2026-10-26 · in force
Fine for declaring a value below the customs value	50 % of the value differenceLey 2586 de 2026 art. 15 num. 15.14.2.1, as of 2026-10-26 · in force
Fine for not filing the Andean Value Declaration	100 UVTLey 2586 de 2026 art. 15 num. 15.14.3.3, as of 2026-10-26 · in force
Term to import all parts of a functional unit, extendable by one year	1 yearsDecreto 1165 de 2019 art. 307, as of 2026-10-26 · in force

The rule

1. Classification follows the Harmonized System approved by Ley 646 de 2001, the Andean Nandina nomenclature, binding Andean Community criteria and the tariff decrees. DIAN issues classification resolutions in advance of import, on ordinary request by any interested party (within two months of the request) or on its own initiative to harmonize criteria. Advance and ordinary rulings bind the applicant from the day after they become final and third parties from the day after publication in the Diario Oficial; DIAN's unifying rulings become generally binding three months after publication. Rulings stay in force while the conditions under which they were issued remain.
Cost to do it: The ruling is a supporting document of the import declaration; an appeal lies against a decision on an ordinary request. Using the wrong subpartida that lowers taxes is fined 10 percent of the taxes not paid (Ley 2586 de 2026 art. 15 num. 15.2.2.6).
Example: A Bogotá importer of smart meters unsure whether they fall in chapter 85 or 90 requests a classification ruling and gets it within two months. / A ruling that confirms a 5 percent instead of a 15 percent subpartida on US$1,000,000 a year of imports secures a US$100,000 yearly duty difference.Decreto 1165 de 2019; art. 304 to 306 as amended by Decreto 659 de 2024, Art. 303, art. 304, art. 305, art. 305-1 and art. 306, 2024-05-22 official text · verified 2026-10-26

2. An advance ruling is issued by DIAN, before import, at the request of exporters, importers, producers or any legitimate party, on tariff classification, application of valuation criteria, whether goods are originating, refunds, suspensions or exemptions of customs taxes, duty free re import after outward processing, tariff quota allocation, country of origin marking (by the competent authority) and other matters agreed in trade agreements. It is binding as long as the information was true and the facts have not changed; the applicant must report any change within 15 days. DIAN issues it within two months of a complete request; it may ask for more information within one month, and the applicant has two months (extendable once) to reply or the request is deemed withdrawn. Foreign applicants act through a representative in Colombia.
Cost to do it: Supplying irregular information to obtain an advance ruling is fined 1,000 UVT (COP 52,374,000, about US$16,582); inexact information or failing to report changed facts, 100 UVT (COP 5,237,400, about US$1,658) (Ley 2586 de 2026 art. 15 num. 15.16).
Example: A Colombian distributor obtains an advance ruling on whether royalties paid to its foreign licensor must be added to customs value before signing the licence. / A US exporter requests, through a Colombian representative, an advance ruling on origin for products it will ship under the Colombia United States agreement.Decreto 1165 de 2019; art. 299 as amended by Decreto 360 de 2021 and art. 300 as amended by Decreto 659 de 2024, Art. 298, art. 299, art. 300 and art. 301, 2024-05-22 official text · verified 2026-10-26

3. Customs value is determined under the WTO Valuation Agreement (approved by Ley 170 de 1994), Andean Decision 571 of 2003 and its regulation adopted by Resolution 1684 of 2014 of the Andean Community General Secretariat. Every imported good needs an Andean Value Declaration, filed electronically, unless an exception applies (notably imports with a FOB value below US$5,000, with split shipments added together). The buyer or importer must declare the value and bears the burden of proof. For goods made in a free trade zone, customs value refers only to the foreign raw materials and inputs used. Value may be declared provisionally in defined cases, such as prices subject to later adjustment.
Cost to do it: Not filing an Andean Value Declaration, or filing one that does not match, is fined 100 UVT (COP 5,237,400, about US$1,658) and release is withheld until it is filed; not producing the contract when declaring a provisional value, 200 UVT (Ley 2586 de 2026 art. 15 num. 15.14).
Example: A Colombian subsidiary buying from its parent at transfer prices must show the related party relationship did not influence the price, under the Decision 571 rules. / A US$80,000 machine bought FOB Miami has a customs value including freight and insurance to the Colombian port; royalties or assists paid by the buyer are added.Decreto 1165 de 2019 as amended by Decreto 360 de 2021, Art. 320, art. 323, art. 325, art. 327, art. 328, art. 332, art. 334 and art. 338, 2021-04-07 official text · verified 2026-10-26

4. Declaring a taxable base lower than the correct customs value is a serious breach fined 50 percent of the difference between the declared and the correct value, per declaration, when it leads to underpaid customs taxes, on top of the taxes due. DIAN can check value through value studies and official assessments within the period the declaration remains open. Inexact data in the Andean Value Declaration that prevents correct valuation, or failing to answer an information request on value, is fined 100 UVT per occurrence.
Cost to do it: Fine of 50 percent of the undervaluation plus the duty and VAT on the difference and interest; the reductions for voluntary admission of art. 19 apply.
Example: An importer that declared COP 315,843,000 for goods worth COP 473,764,500 faces a fine of COP 78,960,750 plus the duty and VAT on the COP 157,921,500 difference. / Undervaluing a shipment by US$50,000 costs a US$25,000 fine before taxes and interest; voluntary admission before a DIAN requirement cuts the fine to 20 percent, US$5,000.Ley 2586 de 2026 (customs sanctions), Art. 15 num. 15.14.2.1, 15.14.3.1 and 15.14.3.2; art. 61 and art. 62, 2026-06-19 official text · verified 2026-10-26 · changed: Ley 2586 de 2026, in force 19 June 2026, replaced the valuation fines of Decreto Ley 920 de 2023.

5. When machines forming a functional unit arrive in several shipments, the importer must obtain a DIAN classification ruling for the unit, and declare each shipment under the unit's subpartida; all elements must be imported within one year of the first declaration, extendable by one more year. The pending request may support the declarations, which must then be corrected within one month after the ruling becomes final if the subpartida differs.
Cost to do it: Correction declarations carry the difference in taxes and, where applicable, fines; there is no DIAN fee for the request.
Example: A bottling line imported in five shipments over eight months is declared under the single subpartida for the complete line. / A US$3,000,000 production line split into containers can be classified as one unit, avoiding higher rates on individual parts.Decreto 1165 de 2019, art. 307 as amended by Decreto 659 de 2024, Art. 307, 2024-05-22 official text · verified 2026-10-26

Breach	Fine	COP	USD (approx.)
Declared base below customs value (with underpayment)	50% of the difference
No Andean Value Declaration or one that does not match	100 UVT	5,237,400	1,658
Inexact Andean Value Declaration	100 UVT	5,237,400	1,658
No contract when declaring a provisional value	200 UVT	10,474,800	3,316
Irregular information to obtain an advance ruling	1,000 UVT	52,374,000	16,582
Not reporting changed facts behind an advance ruling	100 UVT	5,237,400	1,658

Valuation and ruling related fines under Ley 2586 de 2026 art. 15, at the 2026 UVT of COP 52,374 and COP 3,158.43 per US dollar.

Worked example

A German machinery maker's Colombian subsidiary will import equipment worth US$2,000,000 a year and pay a royalty to the parent on local sales. It requests a DIAN advance ruling on whether the royalty is part of customs value and on the classification of the main machine (Decreto 1165 de 2019 art. 298).
DIAN rules within two months. The ruling becomes a supporting document of each import declaration and binds DIAN as long as the facts stay the same (art. 299 and 300).
When the licence is renegotiated, the subsidiary informs DIAN within 15 days, avoiding the 100 UVT (COP 5,237,400, about US$1,658) fine for not reporting changed facts (Ley 2586 de 2026 art. 15 num. 15.16.3.2).

Step by step

1. Classify each product at ten digits in Decreto 1881 de 2021, applying the HS general rules and Andean criteria; search DIAN's published classification rulings.
2. Where the classification, valuation of related party prices, royalties or origin is uncertain, request an advance ruling before the first import.
3. Build the customs value from the transaction value plus the Decision 571 additions (freight, insurance, royalties, assists) and keep the supporting documents.
4. File the Andean Value Declaration electronically with each import of US$5,000 FOB or more.
5. Review declarations periodically and correct undervaluation or misclassification voluntarily before DIAN acts, to pay only 20 percent of the fine (Ley 2586 de 2026 art. 19).

Common traps

Treating another authority's product description as a classification. DIAN is not bound by how other entities describe goods (Decreto 1165 de 2019 art. 304).
Forgetting that rulings follow the facts. A ruling stops protecting the importer when the information was inexact or the facts change (art. 299 and 301).
Leaving royalties and assists out of customs value. The buyer bears the burden of proving the declared value (art. 332), and undervaluation is fined 50 percent of the difference.
Missing the one month window to answer DIAN's information request on a ruling application; after two months without reply the request is deemed withdrawn and fees are not refunded (art. 300).
Importing the parts of a functional unit over more than one year without an approved extension (art. 307).

Sources

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