- Importer Registration
- Prior Authorizations
- Certificates of Conformity with Technical Standards
- Certificate of Origin
- Import Declaration ("DUI") and Authorization:
- Term of Validity
- Limits of Tolerance
- Inspection Abroad Prior to Shipment
- Taxes on Imports
- Customs Clearance

1. Importer Registration:

For an individual or corporation to import on a customary basis, it is necessary to obtain an importer registration at any correspondent bank of the Central Bank of Ecuador. The following is required to obtain the registration: (i) application; (ii) taxpayer registration number ("RUC"); (iii) affiliation with one of the production chambers; (iv) authorized signatures registered for importation purposes.

2. Prior Authorizations:

Imports of certain goods (i.e., alcoholic beverages, medicines, certain foodstuffs, among others) need a prior authorization from the corresponding authorities. Such authorizations must be obtained before the import declaration is submitted to a Central Bank correspondent bank for approval.

3. Certificates of Conformity with Technical Standards:

Imports of goods subject to certain mandatory technical standards and/or regulations must be authorized by INEN or must have certificates of conformity issued by competent entities from countries with which agreements have been executed for mutual recognition of certificates of quality.

4. Certificate of Origin:

Imports from countries that enjoy customs preferences granted by Ecuador must have a certificate of origin issued by the competent agencies of the country concerned (i.e., Andean Community, Venezuela. Colombia, Peru, Bolivia; ALADI member countries, Chile; among others).

5. Import Declaration ("DUI") and Authorization:

Imports of goods whose FOB value exceeds US$ 4,000 must have an authorization ("Visto Bueno") from a Central Bank correspondent bank stamped on the DUI. (If this condition is not met, the goods will be immediately re-exported.) To obtain the authorization, importers must fill out the Import Declaration and deliver it to a Central Bank correspondent bank together with the following:

5.1 Petition or letter indicating if the goods will be imported on a CFR or FOB basis.

5.2 Insurance policy, if any.

5.3 Certificate of good standing issued by the Office of the Superintendent of Companies or the Office of the Superintendent of Banks, as the case may be.

5.4 Order list.

6. Term of Validity:

The term of the DUI, with authorization from a Central Bank correspondent bank, is indefinite, but it is valid for one shipment only. If the goods are subject to a prior authorization, they must be shipped within the period of validity of such authorizations.

7. Limits of Tolerance:

A fine will be imposed on imported goods if they exceed the quantity or value declared on the DUI. However, goods that require a prior authorization have a limit of tolerance, regardless of the value, of up to 10% of the quantity of goods declared. If that limit is exceeded, the goods must be re-exported.

8. Inspection Abroad Prior to Shipment:

Before shipped from the country of origin, goods whose FOB value is equal to or greater than US$ 4,000 must be inspected by a private inspection company retained by the Government of Ecuador. Inspection comprises, among other things, verification of quality, price, quantity and weight of the goods, tariff classification, customs value and previous settlement of applicable taxes.

9. Taxes on Imports:

9.1 Customs duties: These may be ad-valorem (on value), specific (on weight, measures or account units), or mixed (a combination of the above). In Ecuador, customs duties are generally ad-valorem and are calculated on the CIF value of the goods.

9.2 Taxes:

9.2.1 Value added tax ("IVA"): IVA rate is 12% and the taxable base is the result of adding the CIF value, taxes, customs duties, fees, duties, surcharges and other items appearing on the DUI.

9.2.2 Excise Tax ("ICE"): This tax is applied on imports of cigarettes, beer, soft drinks, alcohol, alcoholic products other than beer, motor vehicles for land transportation of up to 3.5 tons load weight, three-wheel carts, four-wheel carts, airplanes, light aircraft, helicopters, water scooters, yachts and recreation boats, among others. The rate varies depending on the goods concerned.

9.2.3 Contribution to CORPEI: This is equivalent to 0.25 per one thousand on the FOB value of imports in excess of US$ 20,000, and a fixed amount of US$ 5 on those lower than or equal to US$ 20,000.

9.2.4 Fondo de Desarrollo para la Infancia ("FONDINFA"): Equivalent to 0.50% of the CIF value, applied to all imports except goods destined for manufacture of medicines for human and veterinary consumption.

9.3 Customs Services Fees:

9.3.1 Storage Fee: Paid only if Customs provides this service directly in warehouses under its responsibility.

9.3.2 Control Fee: Consists of 0.50% of CIF value with US$ 39.43 maximum, applicable on imports under special regimes for temporary admission and re-exportation in the same condition, commercial bonded deposit, free storage (in-bond or duty-free) and free zone.

9.3.3 Modernization Fee: Equivalent to 0.05% of CIF value of goods imported for consumption.

10. Customs Clearance:

Importers themselves must establish the determination of taxes to be paid. In order to submit a customs declaration, participation of a customs agent is mandatory in the following cases: (a) Imports by public sector entities. (b) Imports of goods whose value exceeds US$ 2,000. (c) Imports under any of the special regimes.

© CORRAL & ROSALES, 2007

PLEASE NOTE: These comments are intended to provide general information only. Corral & Rosales cannot accept any responsibility for loss suffered by any persons acting or refraining from action as a result of information contained herein. Any specific legal questions should be addressed to the firm in Quito, Ecuador.