Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.

Ecuador has imposed a broad range of tariff and non-tariff restrictions on trade in goods and services. This trend began several years ago, but accelerated significantly in 2014 and 2015.

As a member of the World Trade Organization (WTO), Ecuador limits most of its tariff rates to 30 percent or less. Its average applied Most Favored Nation (MFN) tariff rate was 7.6 percent for industrial products and 19.6 percent for agricultural products.  However, Ecuador has implemented trade restrictions since its most recent Trade Practice Review (TPR) in 2011, and accordingly the actual average applied MFN tariff rates may be higher. As a member of the Andean Community of Nations (CAN), Ecuador grants and receives exemptions from tariffs, i.e., reduced ad valorem tariffs and no application of the Andean Price Band System, for products from the other CAN countries: Bolivia, Colombia, and Peru. Currently, these countries have an Andean Free Trade Zone and apply common external tariffs (CET), as described in CAN Decision 370.

Ecuador maintains the Andean Price Band System (APBS) on 153 agricultural products –13 “marker” and 140 “linked” products – imported from outside the CAN. The 13 “marker” products are: wheat, rice, sugar, barley, white corn, yellow corn, soybeans, soybean meal, African palm oil, soy oil, chicken meat, pork meat, and powdered milk. The APBS works as an internal price stabilization mechanism whereby the basic (ad-valorem) tariff is increased or decreased using a variable levy. The amount of the variable levy is calculated based on the relation between bi-weekly reference prices and floor and ceiling prices established by the CAN for each marker product. The price band works to maintain protection for domestic industry by keeping tariffs high when world prices fall, and reducing tariffs when world prices increase.

As a condition of its joining the WTO, Ecuador committed to phasing out its price band system, starting in January 1996, with a total phase out by December 2001. No steps have been taken to comply with this commitment. Ecuador argues that retaining the APBS is WTO-consistent and does not constitute a violation of its agreements since Ecuador bound its final tariffs for agricultural commodities between 31.5 percent and 85.5 percent, the same bindings as the APBS.

In March 2015, Ecuador implemented tariff surcharges (salvaguardias) ranging from 5 to 45 percent on 2,800 tariff lines, which represents about 32 percent of the value of Ecuador’s imports. The Government stated that this measure was necessary to protect the country's balance of trade, which had been negatively affected by the recent decrease in oil prices and the appreciation of the U.S. dollar.

Ecuador committed to the World Trade Organization to phase out these increased tariffs by June 2016. To that end, Ecuador reduced the surcharge rate on certain items at the end of January 2016 and outlined a plan to eliminate the tariff surcharges by June 30. In April 2016, the Ecuadorian government announced the extension of the tariff surcharges of 15, 25, or 40 percent on roughly 2,200 products until June 2017. 

In addition to duties, all imports are subject to a 12 percent value-added tax and an additional 0.5 percent tax for the Children’s Development Fund applied to the CIF value of the merchandise. (As part of a tax package passed after the April 2016 earthquake, Ecuador has temporarily raised the VAT to 14 percent for one year. The increased VAT is scheduled to expire on May 31, 2017.)

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