James Perea

AZKOYEN

Zona Franca Pereira


  1. What was the determining factor for you to take the decision to participate in the Free Trade Zone?

Azkoyen Espana compared locations for their first plant in Latin America between Brazil and Colombia. Definitely because of the benefits of the FTZ regime and the specialised suppliers they chose Colombia.

Another important factor is that our company is a very strong exporter and one competitive advantage is to be allowed merchandise without having to pay customs tax. Also the different commercial trades available allow us to obtain benefits.

Paying less taxes compared to a company outside the FTZ

  1. Point out 5 factors how the Free Trade Zone help to increase the exportation of your products or services.

The ability to acquire primary materials in Colombia without IVA.

Paying less income tax.

Our HQ is in Spain and many of our assembly parts come from there. The ability to have these materials available without custom tax, and then to export the finished machinery to many countries with these benefits is a great advantage.

The different commercial agreements that Colombia have with other countries allows us to have tariff advantages and makes us competitive.

  1. Indicate 3 characteristics that the Free Trade Zone has that promote the competitiveness of your operation.

Allows us to be competitive because we have the ability to deal with clients in the TAN and the rest of the world.

Allows us to do partial processes outside of the FTZ. This helps when we need specialised processes or machines to complete our manufacture.

The ability to stock merchandise for an indeterminate time in our plant is a great advantage.

  1. Why do you consider the Free Trade Zones generate development and investment?

They encourage foreign companies to invest. An example is our company, our capital is 100% Spanish and since we took the decision to establish in the FTZ we have contributed to the region and country generating employment, developing local suppliers and growing the know how.

  1. Since being in the Free Trade Zone what are the most important benefits that you have given to the region?

The ability to generate employment, development of local suppliers and creating a unique specialised industry in the country.

  1. What economic and social benefits has the Free Trade Zone contributed to your company and the region?

Our company, being located in the FTZ and qualified as an industry and services user, allows us to have various types of operation. An important factor is to have professional and able people from the region that contribute to the development and growth of the business.

The tax and tariff advantages reflect in the economic benefits and in the time taken for investment return is less than when outside a FTZ.

  1. What benefits would you have by being in a FTZ with respect to free trade agreements?

We have benefits because we have products that can be acquired for our clients without duties or at reduced duties. It makes us more competitive than our European competitors.

  1. Factually, how can you benefit the region by establishing your operations in the FTZ?

Investment in the region and country.

Generation of employment.

Development of local suppliers.

Growth of know how.

Payment of taxes.

  1. Since your company started in the FTZ how have the incentives contributed to your company´s growth?

It has contributed to growth by reducing the payment of taxes, the ability of having primary materials and finished products without paying duties and IVA while they are in the FTZ.

The ability to acquire local primary materials without IVA.

To be more competitive because we have products without or with lower duties depending on the commercial agreements of the country.

  1. What type of production chain has your company realised by being part of the FTZ?

Allows for the development of different local suppliers in sectors such as plastic, metalworking, electrics and packaging among others.

  1. How do the facilities of the FTZ help the creation of SMEs?

The legal stability that the state offers companies within the FTZ more than the commercial and tax benefits allow the SMEs to have clear ´rules of the game ´to help decide whether to become part of the regime. The SMEs should see the FTZ as a starting point to consolidate their products in other countries and increase exports.

  1. Do you think that being in the FTZ helps with access to external markets?

Of course, to be in a FTZ allows you to have Colombian branded products and take advantage of the commercial agreements and tax benefits. It also simplifies the operation as the formalities are standard and the lead-time is reduced.

In a FTZ there is an infrastructure serving the companies that makes it easier for them to export.

  1. Do you think that being part of the FTZ contributes to helping make your products more competitive in international markets?

Yes we think it is that way because all the financial and tax benefits we receive are finally going to our clients. This advantage became a differentiator factor appreciated by our clients in different countries.

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