{"id":121076,"date":"2025-12-10T13:36:42","date_gmt":"2025-12-10T13:36:42","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=121076"},"modified":"2025-12-10T13:36:42","modified_gmt":"2025-12-10T13:36:42","slug":"colombia-aviation-finance-leasing","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/colombia-aviation-finance-leasing\/","title":{"rendered":"Colombia: Aviation Finance &amp; Leasing"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-121076","comparative_guide","type-comparative_guide","status-publish","hentry","guides-aviation-finance-leasing","jurisdictions-colombia"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Parra Rodr\u00edguez Abogados<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/10\/parra-rodriguez-logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Parra Rodr\u00edguez Abogados<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/10\/parra-rodriguez-logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Aviation Finance &amp; Leasing laws and regulations applicable in Colombia<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What international aviation conventions has your jurisdiction signed and\/or ratified?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Republic of Colombia has signed and ratified the following international conventions relating to aviation matters:<\/p>\n<ol>\n<li>The 1944 Chicago Convention on International Civil Aviation, approved by Colombia pursuant to Law 12 of 1947, together with the Montreal Protocols of 1980, 1984, and 1990 amending the Convention, approved in Colombia pursuant to Law 19 of 1992, Law 39 of 1988, and Law 22 of 1992, respectively (the Chicago Convention).<\/li>\n<li>The 1948 Geneva Convention on the International Recognition of Rights in Aircraft, approved by Colombia pursuant to Law 834 of 2003 (the Geneva Convention).<\/li>\n<li>The 1963 Tokyo Convention on Offences and Certain Other Acts Committed on Board Aircraft, approved by Colombia pursuant to Law 14 of 1972 (the Tokyo Convention).<\/li>\n<li>The 1970 Hague Hijacking Convention for the Suppression of Unlawful Seizure of Aircraft, approved by Colombia pursuant to Law 14 of 1972 (the Hague Hijacking Convention).<\/li>\n<li>The 1971 Montreal Convention for the Suppression of Unlawful Acts Against the Safety of Civil Aviation, approved by Colombia pursuant to Law 4 of 1974 (the 1971 Montreal Convention).<\/li>\n<li>The 1988 Montreal Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, supplementary to the Convention for the Suppression of Unlawful Acts Against the Safety of Civil Aviation, concluded at Montreal on 23 September 1971, approved by Colombia pursuant to Law 764 of 2002 (the Montreal Protocol).<\/li>\n<li>The 1991 Convention on the Marking of Plastic Explosives for the Purpose of Detection, approved by Colombia pursuant to Law 1077 of 2006 (the Convention on the Marking of Plastic Explosives).<\/li>\n<li>The 1999 Montreal Convention for the Unification of Certain Rules for International Carriage by Air, approved by Colombia pursuant to Law 701 of 2001 (the 1999 Montreal Convention).<\/li>\n<li>The 2001 Cape Town Convention on International Interests in Mobile Equipment and the Protocol to the Convention on Matters Specific to Aircraft Equipment (the Aviation Protocol), approved by Colombia pursuant to Law 967 of 2005 (the Cape Town Convention).<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If your jurisdiction has signed and ratified the Cape Town Convention: a. Which qualifying declarations (opt-in and opt-out) has your jurisdiction made under the Cape Town Convention? b. Does the Cape Town Convention take priority over conflicting national law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>a. Which qualifying declarations (opt-in and opt-out) has your jurisdiction made under the Cape Town Convention:<\/strong><\/p>\n<p>The following are the declarations made by the Republic of Colombia when it acceded to the Cape Town Convention:<\/p>\n<ol>\n<li>Article 39 (1)(a) of the Cape Town Convention: Labour rights and fiscal debts have priority over an interest in an object equivalent to that of the holder of a registered international interest and shall have priority over a registered international interest, whether in or outside insolvency proceedings.<\/li>\n<li>Article 54 (2) of the Cape Town Convention: The remedies below may only be exercised with leave of court:<br \/>\n&#8211; take possession or control of the object charged to the creditor;<br \/>\n&#8211; sell or lease any object;<br \/>\n-collect or receive any income or profit derived from the management of said object.<\/li>\n<li>Article XXX (1) of the Aviation Protocol:<br \/>\n-Article VIII (choice of law) will apply.<br \/>\n-Article XII (insolvency assistance) will apply.<\/li>\n<li>Article XXX (2) of the Aviation Protocol: Article X will apply in full and the number of working days for the purposes of Article X (2) is of 30 days.<\/li>\n<li>Article XXX (3) of the Aviation Protocol: Article XI, Alternative A will apply in full to all types of insolvency proceedings where the Republic of Colombia is recognized as the primary insolvency jurisdiction. In addition, the waiting period for the case of Article XI (3) of said Alternative will be 60 days.<\/li>\n<\/ol>\n<p>The following are the declarations in respect of which the Republic of Colombia did not opt-in or opt-out when it acceded to the Cape Town Convention, and the effect thereof:<\/p>\n<ol>\n<li>Article 40 of the Cape Town Convention: no declaration in this connection was made by the Republic of Colombia and as a consequence the only rights and interests available for registration will be those established under the Cape Town Convention.<\/li>\n<li>Article 50 of the Cape Town Convention: since no declaration was made by the Republic of Colombia in this respect, paragraphs (2) and (3) under article 50 of the Convention shall apply and thus, articles 8(4) (Remedies of chargee), 9(1) (Vesting of object in satisfaction; redemption), 16 (The International Registry), Chapter V (Other matters relating to registration) and article 29 (Priority of competing interests) will be applicable to internal transactions.<\/li>\n<li>Article 53 of the Cape Town Convention: the Republic of Colombia did not make any declaration in this connection. Therefore, the competent courts in the Republic of Colombia will be defined as per domestic laws, pursuant to which civil courts will have jurisdiction.<\/li>\n<li>Article XIII of the Aviation Protocol: the Republic of Colombia has made no declaration pursuant to article XXX (1) of the Protocol. Therefore, article XIII thereof, which governs irrevocable de-registration and export request authorizations (IDERAs), will not be applicable.<\/li>\n<li>Article 55 of the Cape Town Convention: since no declaration was made under this article by the Republic of Colombia, the provisions of Articles 13 and Article 43 of the Convention will apply.<\/li>\n<li>Article XXI of the Protocol: the Republic of Colombia has made no declaration pursuant to article XXX (5) of the Protocol. Therefore, article XXI of the Protocol will apply.<\/li>\n<\/ol>\n<p><strong>b. Does the Cape Town Convention take priority over conflicting national law? <\/strong><\/p>\n<p>Yes. The Cape Town Convention takes precedence over conflicting national laws. The Convention has the status of national law in Colombia and prevails over inconsistent domestic provisions pursuant to the<em> lex specialis derogat legi generali<\/em> principle and Article 5 of Law 57 of 1887. This doctrine has been upheld by the Constitutional Court in Decision C-005 of 1996.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Will a court uphold the choice of a foreign governing law in respect of the following contracts and if so, please also state any conditions or formality requirements to this recognition a. Lease and b. Security document (for example, mortgage)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>a. Lease<\/strong><\/p>\n<p>Yes. Colombian courts will uphold the choice of foreign law governing an international aircraft equipment lease agreement in accordance with the declaration made by the Republic of Colombia under the Cape Town Convention.<\/p>\n<p>This declaration allows the parties to an agreement governed by the Cape Town Convention, namely a security agreement, a title reservation agreement or a leasing agreement, to choose the law governing their contractual rights and obligations, in whole or in part.<\/p>\n<p>However, it should be noted that if the agreement is to be enforced in Colombia, the judicial proceedings will be conducted in accordance with Colombian procedural law, regardless of the governing law selected by the parties. Furthermore, a Colombian court will give effect to the rights and obligations of each party as set out in the agreement, except to the extent that any of its provisions contravene Colombian public policy rules (<em>normas de orden p\u00fablico<\/em>).<\/p>\n<p><strong>b. Security documents (for example, mortgage)<\/strong><\/p>\n<p>Yes. Please refer to the response to the preceding question.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please confirm whether it is (i) customary and (ii) necessary to also take a local law mortgage and if so, why?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It is neither customary nor necessary to execute a local law mortgage following the accession of the Republic of Colombia to the Cape Town Convention.<\/p>\n<p>Under Colombian law, a mortgage governed by foreign law over an aircraft, whether registered in Colombia or abroad, is valid, recognized, and enforceable in Colombia, provided that such mortgage is registered with the Colombian Aircraft Registry.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign judgments recognized and enforceable by courts of your jurisdiction and if so, please also state any conditions or formality requirements to this recognition (for example, do you require a local court order confirming such recognition)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Any final judgment issued by a foreign court against a Colombian company would be recognized and enforced by Colombian courts without re-trial or re-examination of the merits of the case, through a procedural mechanism known as exequatur, subject to the provisions of Article 605 et seq. of the Colombian General Procedure Code. This procedure requires, among other conditions, that there be reciprocity in the recognition of foreign judgments between Colombia and the jurisdiction in which the judgment was rendered.<\/p>\n<p>Recognition of foreign judgments falls under the exclusive jurisdiction of the Colombian Supreme Court of Justice.<\/p>\n<p>To obtain such recognition, evidence of reciprocity between Colombia and the country where the judgment was issued must be provided. This may be established through the existence of a treaty or convention in force between the two jurisdictions. In the absence of such a treaty, legislative reciprocity must be demonstrated, that is, that the courts of the foreign jurisdiction would likewise recognize and enforce a Colombian judgment.<\/p>\n<p>This legislative reciprocity may be evidenced by the existence of written law in the foreign jurisdiction stating that Colombian judgments are enforceable therein. If no such written law exists, reciprocity may be proven by other means, such as legal opinions from two attorneys duly qualified in the foreign jurisdiction confirming that a Colombian judgment would be recognized and enforced in that country.<\/p>\n<p>The following additional conditions must also be met for the recognition of foreign judgments in Colombia:<\/p>\n<ol>\n<li>the foreign judgment does not relate to rights in rem over assets located in Colombia at the time the original proceedings were initiated;<\/li>\n<li>the foreign judgment does not contravene Colombian public policy rules (<em>normas de orden p\u00fablico<\/em>);<\/li>\n<li>the judgment is final and binding under the laws of the country in which it was issued, and a duly certified and authenticated copy has been submitted to the competent Colombian court;<\/li>\n<li>the subject matter of the dispute is not within the exclusive jurisdiction of Colombian courts;<\/li>\n<li>no proceedings are pending in Colombia involving the same cause of action, and no final judgment has been rendered in any other proceeding involving the same subject matter and the same parties; and<\/li>\n<li>the defendant was properly served in accordance with the laws of the foreign jurisdiction, in a manner reasonably sufficient to afford the opportunity to present a defense.<\/li>\n<\/ol>\n<p>Once a foreign judgment has been duly recognized in Colombia through the exequatur proceedings before the Supreme Court of Justice, it acquires the same legal force as a domestic judgment and may therefore be enforced through local execution proceedings before the competent Colombian court, in accordance with the provisions of the Colombian General Code of Procedure.<\/p>\n<p>&nbsp;<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your aircraft registry an owner-register (registering ownership interests) or an operator-register (registering interests as operator)? Please also state any conditions, procedural steps or formality requirements for such registration and explain how this is evidenced (for example, the issuance of a Certificate of Registration)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Colombian Aircraft Registry operates both as an ownership and operator registry, in accordance with the provisions set forth in the Colombian Commercial Code and the Colombian Civil Aviation Regulations.<\/p>\n<p>The Registry is administered by the Colombian Civil Aviation Authority and records information relating to the ownership, operation, and encumbrances of aircraft in Colombia.<\/p>\n<p>The following documents are required for the registration of an aircraft in Colombia:<\/p>\n<ul>\n<li>aircraft import declaration;<\/li>\n<li>evidence that the aircraft has been deregistered abroad (e.g., an FAA certificate of cancellation of U.S. registration marks);<\/li>\n<li>proof of payment of the applicable Aircraft Registry fees;<\/li>\n<li>documents evidencing that title to the aircraft is vested in the owner (for this purpose, a copy of the aircraft bill of sale must be filed);<\/li>\n<li>a copy of the agreement pursuant to which possession or use of the aircraft is transferred (e.g., a lease agreement);<\/li>\n<li>evidence of the corporate existence and incumbency of the owner, lessor, and lessee (airline);<\/li>\n<li>the aircraft\u2019s technical specifications, including make, model, manufacturer\u2019s serial number, and engine serial numbers (and propeller numbers, if applicable);<\/li>\n<li>a narcotics inspection certificate issued by the Anti-Narcotics Division of the Colombian National Police;<\/li>\n<li>a certificate of absence of drug-trafficking reports issued by the Colombian Civil Aviation Authority; and<\/li>\n<li>photographs of the aircraft.<\/li>\n<\/ul>\n<p>Once the above documents have been duly submitted to the Aircraft Registry, a certificate of registration will be issued for the relevant aircraft.<\/p>\n<p>Upon registration, the Colombian Aircraft Registry records key details of the aircraft, including its manufacturer\u2019s serial number, registration marks, model, and type, as well as any registered agreements relating to its ownership, security interests, or operation.<\/p>\n<p>Under Colombian Aviation Regulations, any documents intended to be registered with the Colombian Aircraft Registry that are executed outside Colombia must be duly notarized and apostilled (or consularized, as applicable) prior to filing in Colombia. In addition, if such documents are drafted in a language other than Spanish, they must be accompanied by an official Spanish translation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a security document register in your jurisdiction where a mortgagee\u2019s interests will be recorded? If so, please also state any conditions, procedural steps or formality requirements for such registration and explain how this is evidenced (for example, the issuance of a certificate or official stamp on the security document)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. A security document (e.g., a mortgage) must be registered with the Colombian Aircraft Registry in order to be recognized, valid, and enforceable in Colombia.<\/p>\n<p>For this purpose, the following documents must be submitted to the Colombian Aircraft Registry:<\/p>\n<ol>\n<li>the original or a true copy of the security document together with two copies thereof;<\/li>\n<li>certificates of corporate existence and incumbency of the relevant parties to the security document. These documents must also comply with the execution formalities described below for instruments executed outside Colombia; and<\/li>\n<li>proof of payment of the applicable registration fees.<\/li>\n<\/ol>\n<p>The security document itself is not required to comply with any particular formality, other than being duly notarized and apostilled (or consularized, as applicable) if executed outside Colombia. In addition, if drafted in a language other than Spanish, it must be filed together with its official Spanish translation.<\/p>\n<p>The documentary requirements outlined above may be simplified if the relevant agreement is executed in Colombia by the attorneys-in-fact of the signing parties. In such case, the corresponding powers of attorney must be duly notarized and apostilled (or consularized, as applicable) and accompanied by the certificates of corporate existence and incumbency of the company granting the power of attorney.<\/p>\n<p>Please note that the mortgagee\u2019s interest will not appear in the aircraft certificate of registration, which only identifies the owner and the operator (lessee). Nevertheless, although the security interests are not reflected in this certificate, they remain fully protected under Colombian law, provided that the underlying security document has been duly registered with the Aircraft Registry.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the effect of registration of: a. Ownership interest (for example, proof of title to third parties of ownership) b. Lease (for example, perfects the status of the Lessor under the Lease) c. Security document (for example, secures priority over later registered security). If there are any interests that could rank prior to the security document please state these<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>a. Ownership interest (for example, proof of title to third parties of ownership)<\/strong><\/p>\n<p>In the case of ownership, registration of the relevant bill of sale with the Colombian Aircraft Registry is the act through which ownership of the aircraft is formally recorded in Colombia. Such registration confers upon the owner full legal recognition as the lawful owner of the aircraft under Colombian law and ensures that the transfer of title is valid and enforceable in Colombia.<\/p>\n<p>In addition, registration provides public notice of ownership, thereby protecting the owner\u2019s rights against third-party claims, and also bestows authenticity on the documents, thereby perfecting, validating, and recognizing the act or agreement with respect to the corresponding aircraft, whether Colombian-registered or foreign-registered and operated in Colombia.<\/p>\n<p><strong>b. Lease (for example, perfects the status of the Lessor under the Lease)<\/strong><\/p>\n<p>Particularly in the case of a lease agreement, registration of the relevant lease agreement is the means by which the Colombian lessee is formally recognized as the operator of the aircraft in Colombia, with all rights and obligations arising from such capacity.<\/p>\n<p>Accordingly, any liabilities resulting from (i) damage caused to third parties on the ground, (ii) collision or interference involving the aircraft, and (iii) the carrier\u2019s liability in respect of passengers and goods arising from the operation of leased aircraft, are statutorily attributed to the lessee-operator.<\/p>\n<p><strong>c. Security documents (for example, secures priority over later registered security). If there are any interests that could rank prior to the security documents, please state these<\/strong><\/p>\n<p>In the case of a security document (such as a mortgage), registration ensures the priority and enforceability of the security interest against third-party claimants in respect of the aircraft. A registered interest takes precedence over any subsequently registered or unregistered interests.<\/p>\n<p>In light of the foregoing, registration with the Colombian Aircraft Registry constitutes public notice to third parties of the rights of the owner, lessor, or secured party in and to the aircraft. Such registration is necessary to ensure the priority, enforceability, and full legal effect of the relevant agreement in Colombia.<\/p>\n<p>Pursuant to the declarations made by the Republic of Colombia under the Cape Town Convention, labor rights and fiscal debts have priority over an interest in an aircraft equivalent to that held by the holder of a registered international interest (such as a mortgage or other security document). This priority applies both within and outside insolvency proceedings. Accordingly, labor rights and fiscal debts rank ahead of the rights of a secured party under a security document constituting an international interest under the Cape Town Convention.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of lease are recognized in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Colombian Commercial Code expressly recognizes aircraft lease agreements and provides that they may be entered into on either a dry lease or a wet lease basis.<\/p>\n<p>In addition, for Colombian tax purposes, international aircraft lease agreements are classified as either international financial aircraft leases or international operating aircraft leases.<\/p>\n<p>International financial aircraft leases are those that include a purchase option at the end of the lease term (whether at a residual or market value) and are registered with the Colombian Central Bank (Banco de la Rep\u00fablica) as a foreign indebtedness transaction. Payments made under international financial aircraft leases are subject to a 1% withholding tax rate, and such leases are not subject to VAT.<\/p>\n<p>International operating aircraft leases, on the other hand, are those that do not include a purchase option at the end of the lease term and do not involve any capital amortization during the lease period. These leases are not required to be registered with the Colombian Central Bank. Payments under operating leases are subject to a 20% withholding tax rate. In addition, operating leases are generally subject to VAT at a rate of 19%, except when the aircraft is used for international transportation, in which case the transaction is exempt from VAT.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What formalities are required to perfect Lessor\u2019s rights under a lease in your jurisdiction (for example, translation, notarization, apostille, legalization etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The lease agreement, once executed in compliance with the formalities described above, must be registered with the Colombian Aircraft Registry and, in the case of international financial aircraft leases, also with the Colombian Central Bank (Banco de la Rep\u00fablica), as explained above.<\/p>\n<p>In addition, the lease agreement must also be registered with the International Registry established under the Cape Town Convention as an international interest, in order for the creditor to be entitled to the rights and remedies available under the Convention.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are the ownership rights relating to engines recognized as separate and distinct from the ownership of the rest of the aircraft in your jurisdiction? Please highlight any separate registration, filing or additional formalities that are required to be completed to perfect Lessor\u2019s interest in the engines<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Article XIV (3) of the Aircraft Protocol to the Cape Town Convention provides that ownership of, or any other right or interest in, an aircraft engine shall not be affected by its installation on, or removal from, an aircraft.<\/p>\n<p>As stated by Professor Sir Roy Goode, paragraph 3 of Article XIV \u201coverrides the national law of a Contracting State which would otherwise apply a doctrine of accession and ensures that neither the installation of an aircraft engine on an aircraft nor its removal from the aircraft affects ownership of or other interest in the aircraft engine.\u201d<\/p>\n<p>Accordingly, ownership rights relating to aircraft engines are recognized in Colombia as separate and distinct from the ownership of the rest of the aircraft.<\/p>\n<p>However, it should be noted that there is no specific registry for stand-alone engines in Colombia. Therefore, in order to protect the lessor\u2019s interests in a stand-alone engine, the relevant engine lease should be registered as an international interest with the International Registry under the Cape Town Convention.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What form does security over aircraft generally take in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Colombia, security over aircraft generally takes the form of a mortgage, which constitutes a right in rem over the aircraft to secure the performance of an obligation, typically the repayment of a debt.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any particular terms or characteristics that such a security document must take (for instance, a cap on the secured liabilities)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no specific terms or characteristics that a security document must contain, other than a clear identification of the parties involved, the encumbered asset, the amount of the secured obligation, and the term of such obligation.<\/p>\n<p>In addition, to create and perfect a local law aircraft mortgage, the security agreement must be executed in writing and registered with the Colombian Aircraft Registry.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any perfection requirements for such security document? If so, please state any conditions, procedural steps, formality requirements or documentation (for example, corporates, list of directors etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned above, in order to create and perfect a security interest over an aircraft in Colombia, the relevant security document must be executed in writing, registered with the Colombian Aircraft Registry, and comply with the minimum requirements established under Colombian law for its validity, namely: the identification of the parties, a lawful purpose, valid consideration, and compliance with the execution formalities described above.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Summarize any captive insurance regime in your jurisdiction as applicable to aviation.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no captive insurance regime currently available under Colombian law that specifically applies to aviation or to any other industry.<\/p>\n<p>Under Colombian legislation, the insurance business is a regulated activity that may only be carried out by insurance companies authorized and supervised by the Financial Superintendency of Colombia in accordance with the Organic Statute of the Financial System and related regulations.<\/p>\n<p>Therefore, Colombian entities are not permitted to establish or operate captive insurance companies to underwrite or retain their own risks, including aviation-related risks.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are cut-through clauses under the insurance and reinsurance documentation legally effective in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Cut-through clauses are not legally effective under Colombian law. Pursuant to Article 1135 of the Colombian Commercial Code, reinsurance is not deemed to be a contract in favor of third parties. Accordingly, the insured has no direct action against the reinsurer, and the reinsurer bears no obligations toward the insured. Although there are no judicial precedents expressly declaring such clauses invalid, Colombian legal doctrine overwhelmingly supports this interpretation.<\/p>\n<p>As an alternative, it is advisable to obtain an irrevocable letter of instructions from the primary insurer to the reinsurer, directing the latter to pay any reinsurance proceeds directly to the designated loss payee. This mechanism is considered valid and enforceable under Colombian law, as it does not alter the legal nature of the reinsurance contract.<\/p>\n<p>This structure achieves the same practical effect as a cut-through clause while remaining fully compliant with Colombian legal principles. The key element is that the instruction must constitute a unilateral act of the primary insurer, independent from the reinsurance agreement, thereby authorizing the reinsurer to make payment validly to a third party on behalf of the insurer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there minimum requirements for the amount of third-party liability cover that must be in place in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Aircraft operators are required to maintain third-party liability insurance covering damage or injury caused to persons or property on the ground.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a mortgagee (or equivalent security interest holder) or lessor following an event of default under a mortgage (or equivalent security document) or lease, respectively, take possession of the aircraft without judicial intervention in your jurisdiction? Please also state any conditions, procedural steps, formality requirements or documentation (for example, original, legalized, translated Lease\/Mortgage, corporates etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. Self-help repossession remedies are not legally recognized or enforceable under Colombian law. In the event of a disputed or hostile repossession, it is highly likely that judicial proceedings will be required in order to lawfully recover possession of the aircraft.<\/p>\n<p>If the lessee or mortgagor refuses to redeliver the aircraft to the lessor or mortgagee, court proceedings must be initiated, as self-help remedies, such as unilateral repossession or export, are not enforceable in Colombia. In such circumstances, authorization from a competent court must be obtained before the aircraft can be repossessed and exported.<\/p>\n<p>The Colombian Constitutional Court has emphasized that self-help remedies granted by a debtor to a creditor may infringe constitutional rights to due process, access to justice, and a fair trial, particularly where a creditor exercises such rights abusively in the event of default.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How can a mortgagee (or equivalent security interest holder), lessor under a lease or designee\/beneficiary of an IDERA deregister the aircraft? Please also state any conditions, procedural steps, formality requirements or documentation (for example, original, legalized, translated Lease\/Mortgage\/IDERA etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The deregistration process must be initiated by either the Colombian lessee (operator) or the aircraft owner. For this purpose, a deregistration application must be submitted to the Aircraft Registry together with the following documents:<\/p>\n<ul>\n<li>evidence of lease termination;<\/li>\n<li>a copy of the aircraft\u2019s export declaration;<\/li>\n<li>the aircraft\u2019s identification plates;<\/li>\n<li>the original certificate of registration (CoR); and<\/li>\n<li>proof of payment of the applicable deregistration fees.<\/li>\n<\/ul>\n<p>In addition, any registered security agreements (such as mortgages) over the aircraft must be cancelled prior to deregistration, or alternatively, a written authorization from the relevant creditor consenting to the deregistration must be filed with the Aircraft Registry.<\/p>\n<p>Yet, if the lessee does not cooperate or voluntarily redeliver the aircraft to the lessor or mortgagee and a hostile repossession is required, judicial proceedings would be required to repossess the aircraft, and it would only be possible for the aircraft to be repossessed, deregistered and exported by the lessor or mortgagee with a court order.<\/p>\n<p>In addition, please note that Irrevocable Deregistration and Export Request Authorizations (\u201cIDERAs\u201d) are not valid or recognized in Colombia.<\/p>\n<p>As an alternative to IDERAs, it is advisable to request an irrevocable deregistration power of attorney from the Colombian lessee.<\/p>\n<p>An irrevocable deregistration power of attorney granted by the lessee in favor of the lessor, lender, or security trustee, authorizing such party to deregister and export the aircraft from Colombia upon the expiration or early termination of the lease agreement, including as a result of an event of default by the lessee, is valid, recognized, and enforceable under Colombian law, pursuant to the Colombian Code of Commerce.<\/p>\n<p>However, the practical value of such a power of attorney may be limited, as creditors are not permitted to exercise self-help remedies in Colombia to repossess leased aircraft.<\/p>\n<p>Furthermore, these powers of attorney have not been tested in practice, and their actual enforceability remains uncertain, particularly in the context of a hostile repossession.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the government or the lessee lawfully prevent the repossession or deregistration and if so, in what circumstances<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. In certain circumstances, the government or the lessee may lawfully prevent or delay the repossession or deregistration of an aircraft in Colombia.<\/p>\n<p>The Colombian Civil Aviation Authority (CAA) may refuse to deregister an aircraft if there is an ongoing or disputed repossession. In such cases, deregistration will only proceed once the creditor (lessor or mortgagee) obtains a court order authorizing the repossession and deregistration of the aircraft.<\/p>\n<p>Likewise, if the lessee is undergoing insolvency proceedings before the Superintendency of Companies (<em>Superintendencia de Sociedades<\/em>), the creditor may be temporarily prevented from repossessing or exporting the aircraft. In these circumstances, repossession rights are subject to the supervision and authorization of the insolvency court.<\/p>\n<p>It is worth noting that Alternative A under Article XI of the Aircraft Protocol to the Cape Town Convention applies in Colombia to all types of insolvency proceedings where Colombia is recognized as the primary insolvency jurisdiction. Pursuant to Colombia\u2019s declaration to the Convention, the waiting period referred to in Article XI(3) is 60 days. Accordingly, the creditor may request the insolvency court to order the repossession of the aircraft, and, in theory, such order should be issued within sixty (60) days from the commencement of the reorganization proceedings.<\/p>\n<p>Outside these circumstances, the government has no general right to prevent repossession or deregistration, provided that the creditor complies with the applicable judicial procedures and obtains the necessary court authorization when required.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If judicial intervention is required, please describe the process? Please also state any procedural steps, length of time to complete and advise as to documentation required<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If judicial intervention is required, the creditor (lessor or mortgagee) may invoke the remedies available under the Cape Town Convention to obtain interim relief pending a final determination from the competent Colombian court.<\/p>\n<p>The Republic of Colombia declared that the period for obtaining speedy relief under Article 13 of the Cape Town Convention is 30 working days, counted from the date the application is filed. Therefore, the lessor or lender should, in theory, obtain interim relief, such as repossession of the aircraft, within this timeframe.<\/p>\n<p>Article 13 of the Cape Town Convention applies in Colombia, and pursuant to Article XXX (2) of the Aircraft Protocol, Colombia declared that Article X applies in full, setting the same 30-working-day period for interim relief. Accordingly, a creditor may, pending final determination of its claim, obtain from a Colombian court one or more of the advance reliefs provided in Article 13 of the Cape Town Convention, including possession, control, or custody of the aircraft.<\/p>\n<p>The exportation and physical transfer of the aircraft should be made available by the relevant Colombian administrative authorities no later than five (5) working days after the creditor notifies such authorities that these reliefs have been granted by a Colombian court, pursuant to Articles IX and X of the Aircraft Protocol, and provided that the debtor has previously consented to such actions in the circumstances specified in Chapter II of the Aircraft Protocol.<\/p>\n<p>However, it should be noted that these Cape Town Convention remedies have not yet been tested in practice in Colombia, and therefore their practical effects and enforceability remain uncertain.<\/p>\n<p>It is likely that the Colombian judge would require evidence that a claim against the lessee or mortgagor is already pending before a competent foreign court (for instance, an English court) before granting interim relief such as repossession. For that purpose, a notarized and apostilled (as applicable) copy of the relevant lawsuit and evidence of its acceptance for filing by the competent court would need to be submitted to the Colombian judge.<\/p>\n<p>Under Article 13(2) of the Cape Town Convention, judges granting advance relief may impose conditions they deem necessary to protect the interests of the parties, including cases where the lessor fails to perform any of its obligations under the Convention or fails to establish its claim, wholly or in part, upon final determination. Based on this provision, a Colombian court may require the lessor to post a bond (cauci\u00f3n) to guarantee compliance with the measure.<\/p>\n<p>According to Article 590(2) of the General Procedure Code, the judge has discretion to determine the amount of the bond, which may be up to 20 percent of the lessor\u2019s monetary claim. However, the judge may also decide not to require any bond before granting the requested relief.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is legal title transferred under the laws of your jurisdiction? Please also state any conditions, procedural steps, formality requirements or documentation (for example, corporates etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Colombian law, the regulation of property rights and the modes of their transfer (Article 20 of the Colombian Civil Code and Article 26 of the International Civil Law Treaty signed in Montevideo on 12 February 1889, approved by Law 33 of 1992) provides that the transfer of ownership of any asset requires (i) an agreement between the parties to transfer ownership of the relevant asset, and (ii) the execution of a mode of transfer through which ownership is effectively conveyed from the transferor to the transferee.<\/p>\n<p>As a general rule, title to movable property in Colombia is transferred upon delivery of the asset. However, in the case of registrable assets such as aircraft, vessels, motor vehicles, and real estate, ownership is deemed effectively transferred only upon registration of the relevant transfer instrument (for example, a bill of sale) with the corresponding public registry (for example, the Colombian Aircraft Registry).<\/p>\n<p>A bill of sale executed abroad will have full legal effect in Colombia, provided that it is duly notarized, apostilled, or consularized (as applicable), officially translated into Spanish, and registered with the Colombian Aircraft Registry.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the sale of an aircraft following enforcement (for example, the requirement to obtain a court order or conduct a public auction or other action in order to sell the aircraft upon enforcement)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The enforcement of a security document (e.g., mortgage agreement) in Colombia will not grant the mortgagee any right to take possession of the aircraft without a court order. Accordingly, the secured party&#8217;s rights are limited to initiating judicial proceedings for the sale of the aircraft through public auction in order to satisfy its claims with the proceeds thereof, or to requesting, within such judicial proceedings, that the aircraft be awarded to it, and thereafter proceed with the sale, as well as to exercising the remedies available under the Cape Town Convention.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would lease rentals be subject to tax (for example, withholding or income tax)? Please also state if there are any conditions for such tax to be imposed and any steps usually taken to mitigate this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The classification of an international aircraft lease agreement as either (i) a financial lease or (ii) an operating lease has a direct impact on the applicable withholding tax (WHT) and value added tax (VAT) treatment of lease payments made by a Colombian lessee to a foreign lessor.<\/p>\n<p>As mentioned before, international aircraft financial leases are those that include a purchase option at the end of the lease term (whether for a residual or market value) and are registered with the Colombian Central Bank as a foreign indebtedness transaction. Payments under international financial aircraft leases are subject to a 1% withholding tax, and such leases are not subject to VAT.<\/p>\n<p>By contrast, international aircraft operating leases are those that do not include a purchase option at the end of the lease term and do not involve capital amortization during the lease term. These leases do not need to be registered with the Colombian Central Bank. Payments made under operating leases are subject to a 20% withholding tax and to VAT at a rate of 19%, except where the aircraft is used for international transportation, in which case the lease payments are exempt from VAT.<\/p>\n<p>Furthermore, decree 175 of 14 February 2025 reinstated the stamp duty in Colombia at a rate of 1%, with provisional effect until 31 December 2025. This duty applies to both public and private documents executed in Colombia or abroad that create, amend, or terminate obligations enforceable in Colombia.<\/p>\n<p>The 1% rate is calculated based on the value of the agreement. If the value of the agreement cannot be determined at the time of execution, the 1% duty will be calculated on each payment made under the agreement (i.e., rental payments).<\/p>\n<p>Agreements classified as foreign indebtedness transactions, such as international financial aircraft lease agreements duly registered with the Colombian Central Bank, are expressly exempt from stamp duty under Article 529 of the Colombian Tax Statute. However, international operating lease agreements may be subject to this tax.<\/p>\n<p>Foreign taxpayers (e.g. aircraft lessors) are not required to file income tax returns in Colombia when the applicable withholding tax has been duly withheld and paid by the Colombian lessee. If, however, the Colombian lessee fails to withhold or pay the relevant tax to the Colombian Tax and Customs Authority (DIAN), the foreign lessor will become liable for filing and paying income tax in Colombia at the applicable rate for non-resident entities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would a sale of an aircraft in your jurisdiction incur sales tax? Please also provide details of amount or calculation and any steps usually taken to mitigate this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>With respect to taxes applicable to the transfer of ownership, the Colombian tax authorities have stated that the sale of an aircraft located in Colombia at the time of the transaction may trigger Value Added Tax (VAT) and income tax.<\/p>\n<p>The Colombian Tax Statute and Colombian Tax Authority consider that VAT applies to the sale of movable goods located in Colombian territory, including aircraft, even if they are temporarily imported.<\/p>\n<p>Accordingly, if the aircraft is physically located in Colombia at the time of the sale, the transaction would be subject to VAT at a rate of 19%, which must be paid before the Colombian Civil Aviation Authority (CAA) registers the change of ownership.<\/p>\n<p>For income tax purposes, Article 24 of the Colombian Tax Statute provides that income derived from the sale of tangible goods located in Colombia at the time of the sale is considered Colombian-source income. Therefore, if the aircraft is located in Colombia when sold, the income obtained by the seller may be subject to Colombian income tax. The applicable tax rate is 35% on ordinary income or 15% if the aircraft qualifies as a long-term capital asset (i.e., held for more than two years).<\/p>\n<p>In summary, both VAT and income tax may be triggered if the aircraft is located in Colombian territory at the time of the sale.<\/p>\n<p>It should be noted that, in the case of the sale of used aircraft, the taxable base for calculating both VAT and income tax corresponds to the difference between the sale price and the acquisition cost.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of aircraft in your jurisdiction and would such importation or exportation incur any liability as to customs or taxes? Please also state if any consents or approvals are required and the procedural steps taken to obtain these, and any procedural steps or formality requirements to mitigate any taxes<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to Colombian law, the importation of an aircraft requires prior authorization (an import license) from the Colombian Tax and Customs Authority (DIAN) to bring the aircraft into Colombian territory.<\/p>\n<p>If the aircraft is subject to an international lease agreement, it must be imported into Colombia under a temporary import regime. A permanent importation will only occur when the aircraft is fully cleared through customs following its acquisition by a Colombian resident.<\/p>\n<p>A leased aircraft imported under a temporary regime pursuant to a lease agreement may remain in Colombian territory for the entire duration of the lease.<\/p>\n<p>If leased equipment, such as an aircraft, exceeds the maximum authorized period under the temporary import regime without prior authorization from DIAN, the authority may enforce the performance bond provided by the importer at the time of importation and may also impose fines.<\/p>\n<p>Furthermore, if the aircraft remains in Colombian territory beyond the authorized period under the temporary import regime and without the necessary authorization, DIAN may seize the aircraft.<\/p>\n<p>It is important to note that the importer (lessee) is the sole party liable before the Colombian Customs Authority for compliance with all import and customs obligations.<\/p>\n<p>On the other hand, in principle, the Colombian lessee is responsible for carrying out all re-export procedures and arranging the ferry flight of the aircraft out of Colombia. Accordingly, in a friendly repossession scenario, the Colombian lessee must obtain a re-export declaration upon redelivery of the aircraft.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any foreign exchange restrictions on transfers of funds<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no foreign exchange restrictions in Colombia that would prevent the transfer of funds under a lease or security document. However, certain Colombian foreign exchange regulations must be observed.<\/p>\n<p>An international lease structured as an operating lease (that is, without a purchase option) does not need to be filed with or approved by the Colombian Central Bank (Banco de la Rep\u00fablica) for the remittance of lease payments from the lessee to the lessor.<\/p>\n<p>If, however, the lease is structured as a financial lease (that is, it includes a purchase option), it will be treated as a foreign indebtedness transaction for Colombian exchange control purposes. In such case, the lease must be registered with the Colombian Central Bank as a foreign indebtedness transaction, and all payments under the lease must be made through the Colombian Exchange Market (mercado cambiario). This registration process is free of charge.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How successful have foreign creditors and lessors been in enforcing their security and lessor rights over and successfully repossessing aircraft in a timely manner?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There have been no enforcement cases in Colombia over the past twenty years that have required foreign creditors or lessors to enforce their rights through judicial proceedings. All aircraft repossessions have instead been resolved amicably and out of court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What government led reforms affecting creditor and lessor rights are currently underway in the aviation sector in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Currently, there are no ongoing legislative reforms in Colombia that aim to affect the rights of aircraft lessors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please describe any interesting legal development in your jurisdiction (for instance, decided court cases or arbitral awards) which affect creditor and lessor rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Superintendency of Companies (acting as the Colombian insolvency court) has recognized aircraft lessors\u2019 claims arising from international interests, such as international aircraft lease agreements, registered with the International Registry prior to the commencement of insolvency proceedings of a Colombian lessee as second-class credits, subordinated only to the lessee\u2019s labor and fiscal debts.<\/p>\n<p>This decision represents a significant milestone for aircraft lessors and financiers in Colombia, as it provides assurance that, in the event of the debtor\u2019s insolvency, their claims (and associated rights) arising from international interests may be classified as preferential claims under Colombian insolvency law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please discuss any relevant governmental regulations implemented in your country to help alleviate the financial and other difficulties faced by airlines in your jurisdiction caused by CoVid 19 and whether that will impact rights of lessors (who lease aircraft to the airlines) and lenders (who finance such aircraft which are mortgaged in favour of the lenders)? Are such governmental regulations expected to be in place until the difficulties faced by airlines caused by the CoVid 19 subside or are they more long term?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a result of the COVID-19 pandemic, many Colombian airlines experienced severe financial distress. In particular, Viva Air, Ultra Air, Clic Air, and Avianca entered insolvency or restructuring proceedings.<\/p>\n<p>In response, the Colombian government implemented various measures to expedite insolvency proceedings and support corporate recovery. These measures included simplifying procedural requirements, shortening statutory deadlines, and facilitating negotiations and agreements between debtors and creditors.<\/p>\n<p>As a result of these actions, some of the aforementioned airlines were able to successfully exit insolvency, thereby preserving jobs and contributing to the recovery and stabilization of Colombia\u2019s aviation sector.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">7483<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/121076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=121076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}