On May 11 2001, the board of directors Colombian Central Bank (Banco de la República) issued External Resolution No. 2 of 2001 reforming articles 48, 49, 50 and 51 of External Resolution No. 8 of 2000, issued by the same entity, which contains the Foreign Exchange Regime. The articles that were reformed comprise the special foreign exchange regime applicable to the oil, gas & mining sectors in Colombia. The special regime allows certain entities which participate in the oil, gas and mining sector in Colombia not to repatriate to the Colombian foreign exchange market the revenues they receive from sales made by them in foreign currencies.
Aside from the format and conformity changes introduced to the articles mentioned, Resolution No. 2 restricted the special foreign exchange regime only to branches of foreign companies (sucursales de sociedad extranjera) that undertake activities of exploration and exploitation of oil, gas, coal, nickel and uranium, or that are exclusively dedicated to the rendering of services inherent to the hydrocarbon sector, in accordance with article 16 of Law 9 of 1991 and Decree 2058 of 1991. Therefore, the possibility for entities with foreign capital (entidades con capital del exterior) that participate in the Colombian oil, gas & mining sector, to accede to the special foreign exchange regime was suppressed. In consequence, any entity that undertakes activities related with the sector, and that is not a branch of a foreign company, will have to comply with the ordinary foreign exchange regime.
As per the entities with foreign capital that until now were part of the special foreign exchange regime, such entities may adopt the ordinary foreign exchange regime.