FINAL ACTIVITY NICOLE GONZALEZ RODRIGUEZ 2010126046

TO IMPORT COTTON FROM THE INDIA GENERAL INFORMATION ABOUT THE COTTON

Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. Under natural conditions, the cotton bolls will tend to increase the dispersion of the seeds. The plant is a shrub native to tropical and subtropical regions around the world, including the Americas, Africa, and India. Uses Cotton is used to make a number of textile products. These include terrycloth for highly absorbent bath towels and robes; denim for blue jeans; cambric, popularly used in the manufacture of blue work shirts and corduroy, seersucker, and cotton twill. Socks, underwear, and most T-shirts are made from cotton. Bed sheets often are made from cotton. International trade The largest producers of cotton are China and India, approximately with annual production of about 34 million bales and 27 million bales, respectively; most of this production is consumed by their respective textile industries. Textile manufacturing having moved to developing nations in Eastern and South Asia such as India and China. Leading producer countries The five leading exporters of cotton until 2011 were: the United States, India, Brazil, Australia, and Uzbekistan. The largest nonproducing importers are Korea, Taiwan, Russia, and Japan.

In India, the states of Maharashtra (26.63%), Gujarat (17.96%) and Andhra Pradesh (13.75%) and also Madhya Pradesh are the leading cotton producing states; these states have a predominantly tropical wet and dry climate.

INDIAN INDUSTRY

The textiles have been pioneers of the industrialization in India and occupy a place privileged in the economy of this country due to his contribution with the industrial production. Currently the Indian market synthetic and rayon textiles reaches a figure close to 4,600 million dollars in exports held annually to 168 countries. The biggest buyers of his products and inputs are the Middle East and the region of the Gulf with 25 per cent and the Asian countries follow him with 23 per cent of the whole of the exports of this segment. In 2010 Colombia mattered about US$1.600 million in textiles, which represented an increase of 27 per cent in the imports from countries as the United States, China, India, Mexico, Korea, Israel, Brazil, Italy, Germany and Indonesia, between others. Of the imports of this year, US$600 millions were in synthetic textiles. Also, US$142 millions were invested in synthetic fibers proceeding from India, which it constituted a growth of more than 92 per cent with regard to the year 2009. This helped to improve bilateral trade and investment between the two countries. Specific sectors such as Mines and Minerals, engineering, automobile, pharmaceuticals and Biotech, transport sector, infrastructure development, services trade (IT, software engineers, BPOs), especially textiles have been identified for enhancing collaboration and co-operation. For that reason, it was decided to constitute Joint Working Group (JWG) in five sectors viz pharma/biotech, IT, FMCG, Auto, engineering & transport, textiles to formalize the structure and follow up enhancement in value chains in these sectors. Both sides decided to consider flexibility in Visa issues. Cooperation in tourism sector was also explored.

COTTON, INDIAS IMPORT REGIME

The import of basic products, included the cotton, is ruled in the India by the Law of Foreign trade (Development and Rules) of 1992, the rules and regulations arising from the law and by the provisions of Foreign Trade Policy. The imported cotton is subject to the same laws, rules, regulations, dispositions, technical specifications, environmental and safety standards that the cotton produced in the country. Cotton imports can freely enter the Indian market. Import standard procedures are similar to those followed in other parts of the world. The contract negotiations between buyer and seller can be done through various media, such as oral agreements and communications by phone or e-mail writing and personal visits by representatives of the industries. If the quality does not match the agreed parameters, be identified and agreed discounts. The cotton commerce in the India keeps on being a traditional deal in which many providers and buyers still predominate over the ancient commercial relations between. The majority of the provisions are on credit including financing from suppliers. In general, both parts fulfill his commitments. With a market of the cotton that makes to itself every year more competitive, the providers are submitted now to the constant pressure that supposes fulfilling the parameters of quality and the delivery times to support commercial healthy and lasting relations with his buying clients

OVERVIEW OF LATIN AMERICAN REGION

The Latin America of today has changed fundamentally and irreversibly. The Governments of Latin America have opened up their markets and reduced import tariffs. They are privatizing their state enterprises. They are according priority to the

modernization/improvement of existing infrastructure and creation of new infrastructure for the growth and development of the region. The Latin American countries are convinced and have realized Indias export capabilities and the advantages of doing business with

India. The Latin American countries look forward to countries like India more seriously for imports at affordable prices.

COLOMBIA AND INDIA

If we specified products, Colombia receives products from the India: mainly cotton and others like motorcycles to assemble, vehicles and autoparts (the majority of taxis Hyundai i10 are from this country), chemists, pharmacists, iron and steel and machinery. In 2010, Colombia imported about U.S. $ 1,600 million in textiles from several countries including India. But this growth in Colombian imports of cotton yarn from India causes serious damage to the domestic and formal employment in the textile sector. These problems were solved with business reforms in Colombia, for example, with Enforcing Contracts Colombia made enforcing contracts easier by simplifying and speeding up the proceedings for commercial disputes.

COLOMBIA INVESTMENT IN TEXTILES, APPAREL AND GARMENTS

Colombia shows a growing trend in importing textile products and cotton fibers to meet the internal demand of Colombian apparel manufacturers, which indicates investment opportunities in this industry in Colombia. Between 2009 and 2010, imports grew over 30% and after the first semester of 2011, they registered a 75% growth with regards to the same period in 2010. Also Colombia hosts important textile and apparel trade fairs like Colombiatex, Colombiamoda, and the Footwear and Leather Show, amongst others.

Services Provided to Investors Proexport, provides a world-class service to meet your needs Tailored information. Public and private sector contacts. Organized agendas and guides for your visits to Colombia. Attention to established investors, and others services.

Investment Incentives in Colombia The World Bank ranked Colombia as the third most business-friendly country in Latin America in its 2013 "Doing Business Report".

Free Trade Zone Regime: Colombia has a competitive Free Trade Zone regime which grants the following benefits for projects for the production of goods or the provision of services:
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Single 15% income tax rate*. No customs taxes (VAT and CUSTOMS DUTIES) on merchandise introduced to the Free Trade Zone from abroad.

Taxes in Colombia Colombia, like any other emerging economy, is facing an increasingly competitive international economic environment, with certain advantages offered to foreign investors on taxes and incentives. Taxes Income and capital gains tax Definition Income tax is a national tax levied on profits and gains derived from day-to-day operations (ordinary income). The capital gains tax applies over the extraordinary income. Tariff Income tax: 25% Capital gains: 10%

Income Tax for Equality (CREE)

CREE is a National tax designed as a contribution of companies to the benefit of employees, employment generation and social investments. The CREE applies over profits and gains obtained by companies which are likely to enrich them. This tax replaced certain wage-based social contributions.

9% for 2013-2015, 8%as from 2016

Sales tax (VAT)

VAT is a indirect national tax on supplied services and on sales and imports of physical goods.

Three tariffs: 0%, 5% or 16%

Consumption tax

Indirect tax levied on vehicles, telecommunications, food and beverages.

4%, 8% and 16%

Tax on financial transactions

The tax is accrued on every transaction aimed at withdrawing resources from checking, deposit or savings accounts, and cashier checks.

0.4% of the value of the operation.

Industry and Commerce Tax

The industry and commerce tax is a local tax that is imposed on revenue generated from industrial, commercial or service activities carried out in the corresponding municipality.

Between 0,2% and1,4%.

Property tax

This tax is levied annually on the ownership, usufruct or possession of real estate property. It is collected by the municipality where the property is located.

Between 0,3% and3,3%.

REGIONAL INFORMATION ABOUT THE MARKET Investment Opportunities in Medellin Antioquia

Medellin has become an advanced epicenter for commerce, industry, and technology. While 20% of the countrys most important companies have their headquarters in this city, each month entrepreneurs from all over the world arrive to see what the region has to offer. Service outsourcing, software and IT services, cosmetics and hygiene products, and hotel and tourism infrastructure all have an important presence in this city. Medellins urban metro transportation system is modern and sleek, and the city has two airports: the Jose Maria Cordova International Airport in the neighboring municipality of Rionegro, and the Olaya Herrera Airport for regional and domestic flights.

REAL TARGET CLIENT IN COLOMBIA

There are needed companies registered in guilds associated with the Colombian Confederation of Cotton - CONALGODON, the company formed by the textile to negotiate the price, purchase and distribute cotton fiber, as well as the National Cotton Distributor DIAGONAL, manufacturers thread yarns and fabrics in ASCOLTEX unionized; clothing manufacturers represented in the national scope, by the Colombian Association of Tailoring - ASCONFECCIONES, and finally, stores and chain stores that sell the final products, that is to say, costumes, fabrics, threads. Medellin, this companies and the whole Colombia worked with important exporting companies of cotton, such as S.C.I BIG COLOMBIAN ALVIVAN LTDA COATS CHAIN S.A C.I. GREENS INTERNACIONAL LTDA C.I. EXPORT MANAGER LTDA