Ecuador requires prior authorization from various government agencies, such as the Ministry of Agriculture (MAGAP)’s Agrocalidad, Livestock Undersecretariat, or Commercialization Undersecretariat, for imports of 80 types of agricultural items. The Ministry of Health must also grant prior authorization (sanitary registration or notification) for imports of processed foods, food ingredients, beverages, cosmetics, pharmaceutical products, reagents, natural products, and pesticides.
There are a number of products that require a standards certification. For more information on standards, please review the standards section below.
Agricultural imports are subject to the decisions of “Consultative Committees” concerning import authorizations, usually related to crop absorption programs. The committees, mainly composed of local producers, often advise MAGAP against granting import authorizations of products such as corn, soybean meal, dairy, and meats. In addition, the Consultative Committees determine the price, usually higher than international prices, at which local production will be absorbed by local industry and require full absorption before imports are allowed.
As a result of combined efforts on behalf of the American Brahman Breeders Association, USDA Foreign Agriculture Service, USDA Animal and Plant Inspection Service, and other cooperatives, a live cattle shipment from the United States to Ecuador was made on May 20, 2015. A total of 171 heads of cattle were shipped via air to Latacunga Airport in Ecuador. This event was the first sale and shipment of live cattle from the United States to South America in 12 years. A second shipment took place in December 2015.
Ecuador maintains bans on the import of used motor vehicles, tires, and clothing. Used special-purpose vehicles such as ambulances, mobile clinics, street sweepers, and fire trucks are permitted as donations.
Ecuador applies a special consumption tax (ICE) to certain “luxury” products including distilled spirits, beer, cigarettes, and soft drinks. The ICE is divided into four groups, and rates as of June 2016 are summarized in the following tables:
| Group 1 Products | ICE Tax |
|---|
| Tobacco products and tobacco substitutes. (This includes pre-prepared products or raw material intended to be smoked, inhaled, or chewed). | 150% |
| Perfumes and eau de cologne | 20% |
| Video games | 35% |
| Firearms, guns used in sports, munitions (except those acquired by the police) | 300% |
| Incandescent bulbs, except those used for automotive purposes. Water heaters and water heating systems, domestic appliances, operating wholly or partly by the combustion of gas. | 100% |
| Group 2 Products | ICE Tax |
|---|
| Type I (Vehicles up to 3.5 tons) | |
| Motorized vehicles priced up to USD $20,000 | 5% |
| Trucks, vans, trucks and rescue vehicles whose retail price is up to USD $30,000 | 5% |
| Motorized vehicles, except trucks, vans, and rescue vehicles, whose retail price exceeds USD $20,000 and up to $30,000 | 10% |
| Motor vehicles, whose retail price exceeds USD $30,000 and up to $40,000 | 15% |
| Motor vehicles , whose retail price exceeds USD $40,000 and up to $50,000 | 20% |
| Motorized vehicles whose retail price exceeds USD $50,000 and up to $60,000 | 25% |
| Motorized vehicles whose retail price exceeds USD $60,000 and up to $70,000 | 30% |
| Motorized vehicles whose retail price exceeds USD $70,000 | 35% |
| Type II (Hybrid or electric motorized vehicles/road transport up to 3.5 tons) | |
| Hybrid or electric vehicles with a retail price up to USD $35,000 | 2% |
| Hybrid or electric vehicles whose retail price exceeds USD $35,000 and up to $40,000 | 8% |
| Hybrid or electric vehicles whose retail price exceeds USD $40,000 and up to $50,000 | 14% |
| Hybrid or electric vehicles whose retail price exceeds USD $50,000 and up to $60,000 | 20% |
| Hybrid or electric vehicles whose retail price exceeds USD $60,000 and up to $70,000 | 26% |
| Hybrid or electric vehicles whose retail price exceeds USD $70,000 | 32% |
| Type III | |
| Planes and helicopters except those for the carriage of passengers, freight, and services; watercraft; yachts; and pleasure boats | 15% |
| Group 3 Products | ICE Tax |
|---|
| Cable TV (prepaid TV) | 15% |
| Casino services, gaming rooms, i.e., bingo, and other gambling activities | 35% |
| Group 4 Products | ICE Tax |
|---|
| Social club memberships/shares above $1,500 per year. | 35% |
| Group 5 Products | ICE Tax (percent) | ICE Tax (specific) |
|---|
| Cigarettes | N/A | USD $0.160 per Unit |
| Alcoholic Beverages, including artisanal beer | 75% | $6.20 USD per liter of pure alcohol |
| Mass-produced beer | | |
| Sodas with a sugar content less than or equal to 25 grams per liter. Energy drinks. | 10% | |
| Sodas with a sugar content greater than 25 grams per liter, except for energy drinks. | | $0.18 USD per 100 grams of sugar |
Regulations issued in November 2011 changed the way the tax is applied to cigarettes and alcohol, adding an additional specific tax per unit, in the case of cigarettes, or liter, in the case of alcohol. In 2016, Ecuador again changed the way it applied the taxes to sodas, energy drinks, and alcoholic beverages. The new taxes are listed above for the Group 5 products.
Ecuador maintains anti-biotechnology laws and regulations. Despite these laws, trade continues in genetically engineered (GE) products, e.g., soybean and soybean products, cotton, and corn. Starting in August 2014, Ecuador requires mandatory labeling of food and beverage products containing more than 0.9 percent transgenic content.
Imports of psychotropic medicines and certain precursor chemicals used in narcotics processing require prior authorization from the National Drug Council (CONSEP) (http://www.prevenciondrogas.gob.ec).
Imports of weapons, munitions, explosives, armored vehicles, ships, and other related equipment require prior authorization from the Ministry of National Defense (http://www.defensa.gob.ec/).
Foreign professionals are subject to national licensing legislation. Foreign insurance companies may present offers on government tenders. If the company is awarded a contract, however, they must obtain authorization from the Superintendent of Banks to operate in Ecuador.
Maritime transport services are generally open, subject to reciprocity with other countries. Since January 2002, telecommunications services have been open to free competition. A new telecommunications law was implemented on June 14, 2013 that considerably increased central government control in the sector and hindered new foreign investment.
Ecuador’s complicated legal and regulatory regime may impose additional non-tariff barriers, increasing the difficulty and cost of doing business in the country. The Foreign Trade Council (COMEX) (http://www.comexi.gob.ec/) is in charge of foreign trade policy and regulations.
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