What is the Rice Development Quota?

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It is a contribution paid by rice growers for each ton of rice produced to promote the technological development of the crop.

The Cuota de Fomento Arrocero began as a voluntary contribution by farmers and was made mandatory by Law 101 of 1963. The current amount of 0.5% of the value of production was established by Law 67 of 1983 and was elevated to the status of a parafiscal contribution by Law 101 of 1993.

Who is responsible for the payment of the Quota?

They are all those natural or legal persons that produce rice.

What is the value of the fee?

It is 0.5% of the selling price of each kilogram of paddy rice.

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COLLECTION OF THE FEE

Who collects the Quota?

Natural or legal persons who acquire or receive in any way, benefit or transform paddy rice, act as collection agents of the quota.

When is the collection made?

When paddy rice is purchased, the producer receives a discount and the development quota is collected by the mills that market the rice, which remit the proceeds to the National Rice Fund during the first days of the month following collection. Approximately 120 mills do this work.

When and where is the amount collected recorded?

The payment of the collected monies must be made within ten (10) days of the month following the month of collection. Checks drawn for the payment of the quota shall be made out to FEDEARROZ Fondo Nacional del Arroz and shall be deposited only in the duly authorized National Collection Account of the Fund.

What are the tax implications for those responsible for the collection of the Quota?

For tax purposes and in order for the natural or legal persons obliged to collect the Development Fees to have the purchases made during the respective taxable year accepted as a cost, they must attach a Certificate of Good Standing for the collection and remittance of such fees, issued by FEDEARROZ, to the income and net worth statement.

What is the extent of the collectors' liability?

They shall be liable for all assessments collected, for assessments not collected and for any erroneous or defective assessment thereof.

What happens for failure to deliver collections in a timely manner?

It will generate interest for late payment, at the rate indicated for income tax and complementary taxes.

GENERAL CONCEPT

Rice Development Quota?

For half a century, the Development Quota has been the support for the technological development of rice in Colombia and its permanence has been due to four important elements:

  • The willingness of farmers to contribute to their technological development.
  • The administration of the funds by the rice growers' guild itself, since the farmers' welfare is always sought.
  • The efficient collection of funds by the mills, which reaches 97%.
  • The effective association between FEDEARROZ's work and research in the Quota.
  • The identification of production limitations in the crop and the research developed to solve them.
  • The results obtained by the National Rice Fund.

How is compliance with contributions verified?

Decree 2025 of November 6, 1996 empowers FEDEARROZ's internal audit to verify the correct liquidation of the Quota, its timely payment, collection and consignment.


It also provides that the legal representative of FEDEARROZ request the Ministry of Finance and Public Credit, who delegated to the DIAN the authorization to carry out inspection visits to the accounting books, accounting supports and records of those subject to the contribution and the collecting entities. When dues are not paid on time or are not collected, or when they are paid with irregularities in the liquidation, collection or consignment, the Federation sends a report to the DIAN, which issues a certificate of conformity that authorizes FEDEARROZ to carry out the collection by judicial means.