An Operator User is the legal entity authorized to direct, manage, supervise, promote and develop one or more Free Zones, as well as qualify its Users.” (Title I, Chapter I, Article 4. Decree 2147 of 2016. )
The types of Free Trade Zone Users are: Industrial Users of Goods, Industrial Users of Services, and Commercial Users, who operate in Free Trade Zones; Administrator Users and Exhibitor Users operate in temporary Free Trade Zones to carry out various types of activities.
Many entrepreneurs have chosen Free Trade Zones as the ideal location for establishing different types of businesses. This is a great investment opportunity, considering the tax and trade benefits that companies that choose to locate in these areas of the country receive, as well as the potential for boosting foreign trade.
Today we will tell you everything you need to know about the different types of Free Trade Zone Users in Colombia , because without a doubt, this is an essential topic that you should know, especially identifying what the Operator User is, who also has the task of boosting foreign trade.
Operator User Authorizations
Main Types of Free Trade Zone Users in Colombia
As we've already mentioned, there are different types of Users (companies) in Free Trade Zones. Below, we'll detail each one, as well as the role they play within them. One of the most important to identify is the Operator User, who is responsible for generating a positive user experience.
Operator User
It is a company located in each Free Zone that it controls, promotes and advises, it also has the mission of reporting to the Ministry of Commerce, Industry and Tourism ( MINCIT ), the fulfillment of the commitments of employment and investment, the role of the Operator User is vital for a Free Zone to function like clockwork.
The User Operator is a company responsible for the administration, promotion, control, supervision, and management of the Free Trade Zone in which it operates; therefore, its role is essential for its proper functioning. Furthermore, User Operators are responsible for authorizing new organizations, as well as providing guidance and advice.
Industrial Users of Services
These are companies that develop activities related to logistics, packaging, transportation, distribution, labeling, warehousing, telecommunications, and data transmission, among other things. They also provide technological and scientific research, medical assistance, technical support, and equipment repair, as well as consulting and auditing services. This type of business benefits many companies located in Colombia, offering important advantages such as cash flow, partial nationalization, high safety standards, and double inventory control, among others.
You might be interested in: Companies that operate from a Free Trade Zone
Industrial Users of Goods
These are authorized companies that carry out activities related to the production, transformation, and assembly of raw materials or semi-finished or intermediate products into final goods and products through processing. These functions must be performed exclusively within their designated Free Trade Zone , offering significant opportunities to expand or enter international trade.
Commercial Users
As their name suggests, Commercial Users of Free Trade Zones are companies responsible for carrying out marketing, storage, conservation, marketing, and distribution activities for their own or third-party merchandise for sale in Colombia or to other countries, taking advantage of the benefit of not being nationalized in the second option.
Unlike the previous cases, Commercial Users face some restrictions. One of them is that they cannot occupy an area exceeding 15% of the total area of the Free Trade Zone where they are located. Furthermore, Commercial Users cannot be classified as goods or services, and because they are already operating in Colombia, they do not benefit from differential rent.
Exhibiting Users
Exhibitors are organizations that temporarily set up shop in temporary Free Trade Zones when events or trade fairs are held. It's worth noting that these events are considered to be of national or international significance, and this unique feature enables them to be held within the Free Trade Zone framework and carry out activities.
Administrator users
This type of user, within the Temporary Free Trade Zones, refers to Administrator Users, who are companies that organize events of national or international significance. In this sense, the administrator user is the person responsible for carrying out administrative, management, and promotion activities for these events held in the Temporary Free Trade Zones, ensuring an adequate user experience.
Currently, there are approximately 1.200 companies located in the various Free Trade Zones across the country. Zona Franca Occidente is one of over 40 Operator Users responsible for monitoring and advising the different Users (companies) located in the 124 Free Trade Zones in Colombia, creating a robust structure for the entry and exit of goods.
You might be interested in: New Free Trade Zone Regime in Colombia
Some benefits of being a Free Trade Zone User
Free Trade Zones are delimited areas with a series of tax, customs, and labor benefits for businesses who choose to establish themselves in them. They were created to encourage foreign investment and promote international trade. Below, we present some of the most important benefits of being a Free Trade Zone User.
Tax exemption
One of the main advantages for Free Trade Zone Users is the tax exemption offered to companies operating within them. There are alternatives to receive benefits for paying income tax, value-added tax, and customs duties.
This exemption represents significant savings, allowing them to invest more in their business and increase profitability. Simplification of customs procedures
Goods can enter and leave the Free Trade Zone without customs restrictions and without having to pay the corresponding customs duties. This significantly reduces the costs and time of customs procedures, allowing companies to be more efficient in their commercial operations.
Access to international markets
Located in strategic areas, these companies can benefit from the logistical and transportation facilities available to export their products to other countries. Infrastructure and services
Finally, Free Trade Zone Users benefit from high-quality infrastructure and services, as these typically include industrial parks, research and development centers, storage areas, financial and logistics services, among others. All of this allows them access to unique resources that help them be more competitive in their commercial and entry operations.
In other words, Free Trade Zones offer a number of significant benefits for companies that choose to establish themselves within them. These include tax and customs advantages that simplify processes, provide labor flexibility, access to international markets, and high-quality infrastructure and services. All of this allows companies to be more competitive and profitable in an increasingly globalized environment; becoming a Free Trade Zone User is a smart move.
Our experience allows you to open yourself up to a new world of business. Contact us and enter the era of modern organizations. Want to learn more about becoming a user? Write to us for detailed information on requirements and the onboarding process.