Open Letter to DIAN: Colombia’s Customs System is Unfair to Individual Professionals

Sirs: I want to share a problem that many people living in Colombia face when importing goods through courier services. The issue shows how our customs system, managed by DIAN (Colombia’s taxation authority), creates an unfair burden on ordinary citizens and people living in Colombia. 

I am a professional photographer and use Japanese cameras and lenses. Colombia does not make any such equipment, and sellers and resellers here have outrageous prices. I therefore have no other option but to import my camera gear. 

My Experience: A $500 USD Lens Becomes a $750 USD Purchase 

Last month, I bought a camera lens online for $500 USD and paid $53 USD for DHL shipping. Colombia’s law clearly states that any item worth less than $200 USD is exempt from customs duties. This makes sense – it helps small importers and regular people who buy personal items online for their personal use. 

But here’s where the system becomes unfair. Instead of applying duties only to the amount above $200 USD, DIAN charges customs fees on the full $553 CIF value (item plus shipping costs). This is how my customs fees were calculated: 

• Gravamen Arancelario: 10% on $553 USD = $219.000 COP

• IVA (VAT): 19% = $457.000 COP

• Manejo de Envío: $123.359 COP

• IVA Sobre Manejo + Cargo: 19% on $123.359 COP = $23.438 COP

Additional fees and calculations bring the total to exactly what I paid. Total customs charges: $822.797 COP (about $200 USD)

This means I paid an additional 40% of the item’s value in Colombian customs charges and taxes, turning my $500 USD lens into a $750+ USD purchase when you include shipping and customs fees. 

Questions in my mind 

• Should there be an IVA levied on the basic duty? Note: I am not buying my lens from Colombian Customs. 

• What is the handling fee for? Is that not covered in the basic customs charges? 

• Is the DIAN system a penalty for importers? That does not make sense: Colombia does not make the item, and it has to be imported. 

The Core Problem: Ignoring the $200 USD Exemption 

The law says items under $200 USD are exempt from duties. Logic tells us that for items over $200 USD, only the excess amount should be taxed. If someone imports a $199 USD item, they pay zero duties. But if I import a $201 USD item, I suddenly owe duties on the full $201 USD, not just the $1 USD over the limit. 

This creates a massive jump in costs for items just over the threshold. It’s like having an income tax system where earning $1 USD more pushes you into a bracket that taxes your entire income at a higher rate, not just the excess. 

How Other Countries Handle This Fairly 

Most countries with de minimis thresholds apply them correctly. In the United States, items are exempt from duties up to $800 USD, and duties apply only to amounts above that threshold.  

For example, using my case, if someone imported a $553 USD item to a country with a $200 exemption (like ours should work), they would calculate duties on $353 USD, not the full $553 USD. This makes the exemption meaningful and creates fair treatment across different purchase values. 

The Impact on Colombian Consumers 

This current system hurts regular Colombians in several ways: 

• Economic burden: People buying essential items like medical equipment, educational materials, or work tools (including IT equipment which are not made in Colombia), face unexpected costs that can double their purchase prices. 
• Unfair treatment: The current system means the $200 USD exemption is essentially worthless for most imports, as courier shipping typically costs $30-60 USD, pushing most items over the threshold. 

Photographic equipment that cannot be repaired in Colombia, and has to be sent to the USA for repair. The cost of parts, service, and courier will push the total cost above $200 USD. 

Reduced competitiveness: Local businesses that need to import supplies or equipment face higher costs, making them less competitive compared to companies in countries with fairer customs systems. 

Discourages small business: Entrepreneurs who want to import small quantities of products for resale face prohibitive customs costs that make their business models unworkable. 

A Simple Solution 

DIAN should change its calculation method to apply customs duties only to the amount above $200 USD. Using my example again: 

• Item value: $500 USD

• Shipping: $53 USD

• Total CIF: $553 USD

• Taxable amount: $553 USD – $200 USD = $353 USD

• Customs duties would then apply only to the $353 USD

This would reduce my customs fees from $200 USD to about $110 USD, making the exemption meaningful and fair.

Time for Reform 

If the shipments are equal to or less than $200 USD, they are exempt from customs duties – this is what the law says. But DIAN’s interpretation makes this exemption almost meaningless for most imports. 

Other countries manage to implement fair de minimis systems without losing significant revenue. Colombia can do the same. The current system doesn’t just hurt individual consumers – it reduces our economic competitiveness and discourages the kind of small-scale importing that helps diversify our economy. 

I call on DIAN to review their calculation methods and implement a fair system that honors the spirit of the $200 USD exemption. Colombian consumers deserve customs policies that support economic activity, not systems that create artificial barriers to fair trade. 

The law already exists. We just need DIAN to apply it fairly. 

Photo credit: Mano Chandra Dhas.