ANNOUNCEMENT 23 Nov 2018

The Ecuadorian Government has adopted a new trade policy eliminating import duties on products not locally produced with the intention to boost local production. 

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Foreign Trade Committee of Ecuador. Comité de Comercio Exterior. Resolución No. 022-2018 de 23 de noviembre de 2018. Available at: https://www.comercioexterior.gob.ec/wp-content/uploads/2018/12/resolucio%CC%81n-022-2018.pdf

Official Gazette of Ecuador. Registro Oficial de Ecuador. No. 379 – Suplemento Viernes 30 de noviembre de 2018. Anexo I. Available at: http://www.pudeleco.com/files/Anexo%20I%20Comex%20Res.pdf

Inception date: 30 Nov 2018 | Removal date: open ended

Import tariff

On 23 November 2018, the Ecuadorian Foreign Trade Committee (COMEX) has issued Resolution No. 022-2018 approving a new trade policy to promote the productive development of the local industry. To this end, the new legislation exempt beneficiaries from import duties of goods and commodities that are not-locally produced and are required in the beneficiary's manufacturing process.

In order to enjoy the incentive, potential beneficiaries must fulfil the following requisites:

  • Proof from the Ministry of Industry that imported goods must lack local production and/or its technical requirements must not be generated in the country;
  • Proof from the relevant Ministry that the imported commodities are related to the industrial sector where the beneficiary belongs;
  • Provide multiple administrative documentation related to the beneficiary's activity, production and exportation activity, manufacturing capacity, the volume of imports that will be affected by the incentive, costs structure, competitors analysis, social security compliance and number of employees classified by job category; and
  • An annual report detailing the company's perspectives related to local sales, the volume of exports, services related to the produced products, the volume of imports that will be affected by the incentive and the estimation of the number of jobs that will be created as a result of the incentive. 

The new legislation revokes all previous legislation that contravenes the new incentive and has entered into force on 30 November 2018. 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A