List of Business Practices

The information contained herein does not constitute a certification. If you require certification of any of the following business practices, you can visit any of our offices, pay the corresponding rights and acquire said certification. 

For further information in regard to business practices, click on the area of your choice. 

A - Real State

The business practices in Bogotá's Real State Sector are the following:

A.1. Commission for brokering the sale or purchase of real estate 

"In Bogotá there is business practice in place whereby through the commission agreement for arranging the sale of a property, the seller of the property pays the broker a commission when the latter has managed to complete a purchase agreement on the property. The commission is determined as follows: (I) if the property is sold in the urban area of Bogota D.C., commission will be three percent (3%) of the sale price of the property; (Ii) if the property sold is outside the urban area of Bogota, but in municipalities within the jurisdiction of the Bogotá Chamber of Commerce, commission will be five percent (5%) of the sale price of the property".

A.2. Brokerage commission in commercial leases, when the property is delivered for administration purposes

"In Bogotá D.C., it is customary in commercial brokerage contracts for commercial leases, that the owner or lessee of the property pays the broker a fee equal to eight percent (8%) of the monthly lease fee when the broker has managed to hold a lease and property administration is delivered to the broker".   

A.3. Lease payments for commercial premises 

"In Bogotá D.C., there is business practice among commercial tenants whereby they make their lease payments monthly, in advance, during the first five (5) working days of each month". 

A.4. Brokerage commission in commercial leases, when the property is not delivered for administration purposes 

"In Bogotá D.C., it is a business practice in commercial brokerage contracts for commercial leases, that the owner or lessee of the property pays the broker a one-time fee, equivalent to one (1) month's lease payment amount, when the broker has managed to hold a lease agreement, but property administration is not delivered to the broker". 

A.5. Who pays the notary fees on the sale of a property? 

"In Bogotá, D.C., in contracts for the sale or purchase of real estate, it is a business practice for notary expenses corresponding to public sale/purchase deeds to be covered by the buyer and seller in equal amounts". 

A.6. Who pays the notary fees on the sale of a property? 

"In Bogotá, D.C., in property sales contracts, it is a business practice for registry taxes on the property and the public sale/purchase deed at the Public Deed Registration Office, to be made by the purchaser of the corresponding property".

A.7. Prorated payment of unified property tax

A7. "In Bogotá D.C., it is a business practice in real estate sale commercial contracts for the unified property tax corresponding to the year when the agreement is made, to be paid proportionally by the seller and the buyer". 

 A.8. Delivery of the property in good standing (free and clear) in the sale 

A8. "In Bogotá D.C., it is a business practice in real estate sale commercial contracts for the seller to cover the obligation to deliver the property free and clear and in good standing of property taxes, public utilities and management fees". 

A.9. Inventory signature on the lease agreement of commercial premises

"In Bogotá D.C., it is a business practice that in the lease agreement of commercial premises, the tenant must sign an inventory list upon receiving the property, which includes its condition and the elements that comprise it. This inventory is part of the lease agreement".

B - Commercial Sector

The business practices in Bogotá's Commercial Sector are the following: 

B.1. Check-out times for hotels in Bogotá. 

"In Bogotá D.C., there is a business practice between hotels whereby check out time is 3:00 p.m.".

B.2. Term of notice for termination of the supply contract

"In Bogotá D.C., it is a business practice that in order to terminate the contract for the supply of retail goods for items other than food, chain stores and/or supermarkets give notice of such termination to wholesale distributors by telephone and in advance of at least one (1) week".

B.3. Determination of the amount in the supply contract  

"In Bogotá D.C., there is a business practice for the supply of retail goods other than food marketed between wholesalers and chain stores and/or supermarkets, that fixes the amount of the contract monthly, depending on the turnover of the goods and inventories when the parties have not fixed said amount and frequency". 

B.4. Graphic arts and information technology businesses usually indicate that the value of VAT is included in the quoted price 

"In Bogotá D.C., it is a business practice for printing companies and information technology companies, to indicate the value of VAT in the quoted price for the goods or services offered to their clients, to break down VAT when included in the quoted price and to indicate that good and/or service is not subject to VAT where applicable". 

B.5. Graphic arts and information technology businesses usually indicate that the value of VAT is included in the quoted price 

"In Bogotá D.C., it is a business practice for good and/or service budget consulting companies to indicate the value of VAT in the prices offered to their clients, to break down VAT when included in the quoted price and to indicate that good and/or service is not subject to VAT where applicable". 

B.6. Use of the sign ® or its abbreviation Reg. as a trademark in the pharmaceutical sector 

"In Bogotá, D.C., in the pharmaceutical sector, it is a business practice to use the symbol ® or the abbreviation "Reg." next to the name of a product, or on its label, packaging, container or wrapping, in order to notify the public that the brand of the product is a registered trademark".

B.7. Changing medications about to expire 

"In Bogotá D.C., it is a business practice that by way of medication supply and/or purchase agreements, suppliers or wholesalers of pharmaceutical products, change medications which are about to expire at no cost to small distributors (drugstores, pharmacies, drug deposits, etc.)". 

B.8. Guest guarantees in the hotel sector

"In Bogota, D.C., it is a business practice that upon check in at hotels, guests are required to produce a voucher or credit card receipt to ensure payment of consumption or services".

B.9. Hotel reservation cancellation

"In Bogota, D.C., it is a business practice that hotels allow cancellation of the hotel reservation at no cost to the customer, when done at least 24 hours prior to the date set for the entry or check in". 

B.10. Rights of traders who operate in public areas of shopping centers 

"In Bogotá D.C., it is a business practice that in the commercial use of public areas in shopping malls, the trader who is granted such use is entitled to the use of transit corridors, loading areas and public restrooms". 

B.11. Rights of traders who operate in public areas of shopping centers 

"In Bogotá D.C., it is a business practice that for commercial use of public areas in shopping malls, the trader who is granted use remains subject to compliance with the obligations contained in horizontal property bylaws and the internal manuals of said shopping centers". 

B.12. What is included in the economic compensation for the use of public areas of shopping centers? 

"In Bogotá D.C., it is a business practice for the commercial use of public areas in shopping malls, when use is granted to the trader, that the cost of public utilities is encompassed in the agreement as compensation". 

B.13. How to determine the remuneration for the commercial use of public areas in malls

"In Bogotá D.C., it is a business practice for the commercial use of public areas in shopping malls, when use is granted to the trader, that the compensation is determined per square meter". 

B.14. Ready-mix concrete delivery 

"It is a business practice in Bogotá that in the ready-mix concrete purchase/sale agreement, the seller delivers the material wherever the buyer so requires". 

B.15. Agency contract confidentiality

"It is a business practice in Bogotá that in the commercial agency agreement, the parties undertake to maintain the confidentiality of the information exchanged between them in terms of clients and contracts". 

B.16. Disposition of animal products

"It is common practice within the CCB jurisdiction that slaughterhouses, when slaughtering bovine animals, may dispose of waste materials such as: blood, ruminal and biliary content, uteri and reproductive organs". 

C - Information Technology Sector

The business practices in Bogotá's Information Technology Sector are the following: 

C.1. Delivery of object code in software licenses  

"In Bogotá D.C., it is a business practice for software licensing contracts to comprise the delivery of the object code by the licensor to the licensee". 

C.2. Are there any differences between maintenance and software support services?

"In Bogotá D.C. it is a business practice that the term "maintenance" in software license agreements be understood in a way that does not include support services".   

C.3. Ensuring good performance in software licensing contracts 

"In Bogotá D.C., it is a business practice that in software licensing agreements, the customer is given a guarantee of proper operation of the software for a period of one (1) year". 

C.4. Terms and conditions of use of websites 

"In Bogotá D.C., it is a business practice that because visitors are surfing a given website, they are all under the obligation to abide by the terms and conditions of use, content and intellectual property rules". 

C.5. The website is part of the business establishment

"In Bogotá, it is a business practice that the website is considered as an integral part of the employer's business establishment". 

C.6. The vendor shall be responsible for the update of the technical and user manuals

"In Bogotá, it is common practice in software licensing, manufacturing, maintenance and support contracts for the vendor to update the technical and user manuals whenever the software product is updated, at no extra cost".

D - Transportation Industry

The business practices in Bogotá's Transportation Industry are the following: 

D1. Airfare discounts granted by Colombian airlines to their beneficiaries

"In Bogotá, D.C., in accordance with business practices, it is normal that the discount granted by Colombian airlines for the issuance of tickets on behalf of their contractors, consultants, employees of other airlines or people linked to the transportation or tourism sector, or to people for whom they decide to do so as part of the trade policy, may rise to 100% of the value of the ticket, subject to the terms and restrictions set by each airline in its ticket issuance manual".

D.2. Discontinuance by the passenger of the inter municipal public transportation agreement

"In Bogotá, D.C., it is a business practice for public inter municipal transportation companies to return the cost of the ticket when the passenger declines to take the agreed transportation, provided that such discontinuance of the agreement is communicated personally by the passenger before the time set for the trip". 

D.3. Signing the bill of lading by the shipping agent 

"In Bogotá D.C., it is a business practice for the shipping agent in the Contract for International Cargo, in its capacity as representative of the owner and/or shipping agent, to sign the bill of lading as security title representing the goods shipped". 

D.4. Load Order in the shipping contract 

In Bogotá D.C., it is a business practice that the shipping contract is issued by way of a document called Load Order, which has the following effects: (i) To provide the cargo generator with the authorization given to the driver by the shipper to withdraw and ship the goods and, (ii) Upon acceptance by the shipping agent, the quantity, quality and characteristics of the goods are verified.

D.5. Load Order in the enrollment contract 

"In Bogotá D.C., it is a business practice that the enrollment contract issues a document entitled the load order, which has the following purposes: (i) It proves the connection between the vehicle owner and the shipper; and (ii) It gives the bound shipper the right to withdraw the goods at the premises of the cargo generator". 

E - Automotive Industry

The business practices in Bogotá's Automotive Industry are the following: 

E.1. The concept of 'trade promotion' in the purchase of new domestic vehicles 

"In Bogotá D.C., it is a business practice in joint venture agreements entered into in the form of consortiums and/or joint ventures, to delegate administrative management of the agreement on one of its members."  

E.2. Conditions for the exchange of vehicles between dealerships 

"In Bogotá D.C. it is a business practice to exchange domestic vehicles, new and for private use, between dealers of the same brand. The swap is made at factory cost, without any markup or surcharge, in order to timely and adequately meet customers' demands in terms of colors and types of cars." 

E.3. Bogotá dealers repair vehicles sold by other dealers of the brand as part of the warranty offer 

"In Bogotá D.C., it is a business practice in the purchase of new domestic and imported vehicles, for dealers provide warranty service of the product, regardless if the vehicle has been purchased at a different dealership of the same brand." 

E.4. Payment of transfer costs at the dealership for used vehicles for private use  

"In Bogotá D.C., it is a business practice that the payment of transfer fees is covered by the buyer and seller equally in contracts for the sale of private, used cars." 

E.5. Payment of previous year's taxes at the dealership for used vehicles for private use

"In Bogotá D.C., in contracts for the sale of private, used cars, it is a business practice to prorate the payment of the previous year's vehicle taxes proportionally between the buyer and seller."  

E.6. Deadline to sell or return used motor vehicles given in consignment 

"In Bogotá, it is a business practice that as part of the consignment agreement for used motor vehicles, the consignee has a minimum of 30 days to either sell or, otherwise, return any unsold vehicles." 

E7. Delivery of accessories in the sale of new vehicles for private use 

"In Bogotá, D.C., in contracts for the sale of new vehicles for private use, it is a business practice that the seller delivers the following accessories to the buyer: Spare tire, one (1) new spare key and floormats." 

E8. Delivery of accessories in the sale of new vehicles for public service 

"In Bogotá, D.C., in contracts for the sale of new vehicles for public service, it is a business practice that the seller delivers the following accessories to the buyer: Spare tire, and one (1) new spare key and floormats."  

E9. Delivery of accessories in the sale of used vehicles for public service 

"In Bogotá, D.C., in contracts for the sale of new vehicles for private use, it is a business practice that the seller delivers the following accessories to the buyer: Spare tire and floormats." 

E10. Delivery of accessories in the sale of used vehicles for public service 

"In Bogotá, D.C., in contracts for the sale of used vehicles for public service, it is a business practice for the seller to deliver the buyer the spare tire." 

F- Joint Venture Agreements and Franchises

The business practices in Bogotá's Joint Ventures Agreements and Franchises are the following: 

F.1. Administrative management of shared risk agreements (joint ventures) 

"In Bogotá D.C., it is a business practice in joint venture agreements entered into in the form of consortiums and/or joint ventures, to delegate administrative management of the agreement on one of its members."  

F.2. Independent Accounting Management in Consortiums or Temporary Unions 

"In Bogotá D.C., it is a business practice in joint venture contracts entered into in the form of consortiums or temporary unions, to keep their accounts separately from the accounts of the people who make up the consortium or temporary union." 

F.3. Know-how in Franchise agreements

"In Bogotá D.C., it is a business practice in franchise agreements for the franchisor to provide the franchisee with initial and ongoing training on the goods or services that comprise the franchise, to convey its know-how."

F.4. Delivery of Operations Manuals in franchise agreements 

"In Bogotá D.C., it is a business practice that in the franchise agreement, the franchisor delivers the franchisee an operations and procedures manual, in order for the latter to successfully perform the business activity under contract." 

F.5. Assignment of shares in consortium or temporary union contracts 

"In Bogotá D.C., it is a business practice that in Consortium or Temporary Union contracts, once awarded and entered into, the members can only assign their participation to third parties with the acceptance and/or approval of the contracting party."

F.6. Distribution of internal accountability in consortia in Joint Venture contracts 

"In Bogotá D.C., it is a business practice in joint venture contracts entered into under the modality of consortium or temporary union, to agree among partners on sharing the internal liability for breach of obligations under the contract."

F.7. The franchisor may exercise permanent audit of the franchised business 

"In Bogotá D.C., it is a business practice in the franchise agreement for the franchisor to perform permanent audit on the business of the franchisee for the latter to properly implement and develop the franchise under contract."

F.8. The duty of confidentiality in the franchise

"In Bogotá D.C., it is a business practice that under franchise contracts, the franchisee has the obligation to keep confidentiality of the transferred know-how."

F.9. Term of consortium or joint venture contracts 

"In Bogotá D.C., it is a business practice that in Consortium and/or Temporary Union contracts, the term is extended up to one (1) year after the settlement of the agreement entered into with the contracting entity, which led to the temporary union and/or consortium."

F.10. Expenses in the underwriting of consortium or temporary union contracts 

"In Bogotá D.C., it is a business practice that in Consortium and/or Temporary Union contracts, expenses incurred in consequence of the same shall be covered proportionally to the participation of each member thereof."

G - Financial Sector

The business practices in Bogotá's Financial Sector are the following: 

G.1. Meaning of the term 'counter-guarantee' letter of credit transactions 

"In Bogotá D.C., the term "counter-guarantee" used in letter-of-credit issuance operations refers to the delivery to the issuer by the holder of a blank promissory note with a letter of instructions to be used as an executive title for collection in case of breach of the obligations assumed by the policyholder."

G.2. Actions against the vendor in the leasing contract

"In Bogotá, DC, it is a business practice in leasing contracts for the tenant or lessee to exercise the rights arising from a purchase transaction from the seller."

G.3.  What is meant by canceled checking account and settled checking account?

"In Bogotá, D.C., it is a business practice that in a checking account contract, the financial sector establishes a distinction between "canceled account" and "settled account."
The meaning of "canceled checking account" is when the bank unilaterally terminates the contract upon the occurrence of any one (1) of the following events: poor management; drawing checks without provision of funds; breach of the obligations under the contract; when the account is used for illegal operations or for providing false personal or financial information.
The meaning of "settled checking account" is when the contract is terminated: unilaterally by the bank or by the client, or by agreement between the bank and the client, for reasons different from those required for a canceled checking account."

G.4. Time of disbursement in the contract of pledge without possession of the creditor 

"In Bogotá, D.C., it is a business practice that in the contract of pledge without possession of the creditor, the guaranteed loan disbursement is made after the registration of the pledge agreement in the Mercantile Registry of the Bogotá Chamber of Commerce." 

G5. EBITDA Concept

"In Bogotá it is a business practice that the term EBITDA, when used in the accounting and financial development of the business, refers to earnings before interest, taxes, depreciation and amortization."

G6. Uses of EBITDA

"In Bogotá it is a business practice that the term EBITDA, when used in the accounting and financial development of the business, it is used for any of the following purposes:
• Valuation of companies. • Analysis of the value generated in the company. • Determines the profit or gains obtained by the company or project. • Provides better information regarding the operation of the business in which the company participates, compared to the information obtained by looking only at the profit or loss results. • Measurement of profitability and, therefore, an indicator that enables an approximation to the value of a company. • To measure the performance of companies."

G7. Using UCP-600 rules of the ICC, in Documentary Letters of Credit 

"In Bogotá D.C., it is a business practice to hold commercial rights and obligations derived from letters of credit in International Sale of Goods Agreements, to the uniform rules and uses adopted by the International Chamber of Commerce in Prospectus 600".  

H - Insurance Sector

The business practices in Bogotá's Insurance Sector are the following: 

H.1. Mechanical signature on the Insurance Contract 

"In Bogotá D.C., it is a business practice in insurance contracts that the insurance companies use mechanical signatures on the cover, annexes and amendments in all issuing branches." 

H.2. Leasing contract insurance 

"In Bogotá D.C., it is a business practice in leasing contracts to purchase insurance to protect the leased assets against all kinds of risks, and where the beneficiary is the Commercial Financing company. The insurance premium must be paid by the tenant, and when it is hired by the Commercial Financing Company, the amount of the premium must be added to the leasing contract amount."  

I - Publishing Sector

The business practices in Bogotá's Publishing Sector are the following: 

I.1 Term to sell or return the books given in consignment 

"In Bogotá, it is a business practice that in book consignment agreements, the consignee has a minimum of 30 days to sell the books or to return any unsold copies." 

I.2 Term to sell or return biweekly distribution magazines given in consignment

"In Bogotá, it is a business practice that in biweekly distribution magazine consignment agreements, the consignee has a period equivalent to the distribution period (15 days) of the magazines to sell them or, otherwise, to return any unsold copies." 

I.3 Term to sell or return monthly distribution magazines given in consignment 

"In Bogotá, it is a business practice that in biweekly distribution magazine consignment agreements, the consignee has a period equivalent to the distribution period (30 days) of the magazines to sell them or, otherwise, to return any unsold copies." 

J - INCOTERMS

The business practices in Bogotá's Incoterms are the following: 

J.1. Use of the term INCOTERMS EXW

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term EXW, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed". 

J.2. Use of the term INCOTERMS FAS

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term FAS, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed". 

J.3. Use of the term INCOTERMS FCA

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term FCA, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed". 

J.4. Use of the term INCOTERMS FOB

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term FOB, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed".

J.5. Use of the term INCOTERMS CPT

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term CPT, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed". 

J.6. Use of the term INCOTERMS CFR

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term CFR, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed". 

J.7. Use of the term INCOTERMS CIP

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term CIP, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed". 

J.8. Use of the term INCOTERMS CIF

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term CIF, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed". 

J.9. Use of the term INCOTERMS DAT

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term DAT, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed". 

J.10. Use of the term INCOTERMS DAP

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term DAP, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed". 

J.11. Use of the term INCOTERMS DDP

"It is a business practice in Bogotá, that when a contract for the international sale of goods uses the term DDP, it is understood as the term in the INCOTERMS described by the International Chamber of Commerce, in force at the time when the contract was signed". 

 

Note: 

The Chamber of Commerce of Bogotá, jointly with the trade law research area at the Universidad Colegio Mayor de Nuestra Señora del Rosario, is currently conducting a survey to assess the validity and suitability of the 78 merchant common practices currently included in this list.

We are currently completing this survey and, once we have the results we will: (i) ratify the merchant common practices that are current, and (ii) decertify those practices that have fallen out of use, or those which have been subject to regulation under Law.

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