Elimination of the cost of freight from the tax base seeks to provide relief to importers

The measure was announced on December 3 by the Ministry of Production, Foreign Trade, Investment and Fisheries.

A relief measure was announced by the Government for the merchandise importing sector nationwide.

growth was in the order of 20% in dollars and 8% in volume, compared to 2020. Until December, this segment managed to place $18,091 million in different destinations worldwide. Ministry of Production, Foreign Trade, Investments and Fisheries in conjunction with the National Customs Service of Ecuador (Senae) They reported that, as of November 29 of this year, the total elimination of the cost of freight in the tax base for calculating customs duties. That is, imports They will pay less duties and taxes upon entering the country.

Miguel Angel Gonzalez, president of the Guayaquil Chamber of Commerce (CCG), explained that customs duties take the value of the product plus insurance and freight as the tax base. The latter is the one that has hadan increaseof more than 500% which has translated into a higher tax payment. For example, mobilizea 40 foot containerIt cost $2,500 eight months ago, and is currently trading at up to $10,000.

The increase in rates is due to themarked shortage of containers, through which 80% of world trade is moved. “Companies have faced this problem throughout 2021 and analyzes indicate that this situation will continue throughout 2022,” González said.

Therefore, it is considered that the total elimination of freight cost in the tax base will allow the businessman to conserve part of his resources instead of paying more taxes.

Through this measure, as detailed in a statement from the Production portfolio, the Government implements concrete actions that will significantly reduce the impact generated by the constant increase in the cost of international maritime freight to exporters, importers and consumers throughout the country.

The main objective is acost reductionfor the productive sector, says the ministry.

From theChamber of Commerce of Quito (CCQ)It is also highlighted that this mechanism is positive and helps somewhat to reduce the increase in costs that foreign trade has suffered.

However, David López, director of that union, points out that it needs to be operational in the customs system, which has suffered some inconveniences in recent weeks. This, in addition to harmonizing the new measure with the Andean regulations.

growth was in the order of 20% in dollars and 8% in volume, compared to 2020. Until December, this segment managed to place $18,091 million in different destinations worldwide.Ministry of Production, Foreign Trade, Investments and Fisheriesindicated, until last December 3, that the National Customs Service of Ecuador was implementing the necessary improvements in its computer systemEcuapassfor the immediate application of this measure.