Elimination of the cost of freight from the tax base in Ecuador

The Ministry of Production, Foreign Trade, Investment and Fisheries of Ecuador, and the National Customs Service of Ecuador (Senae) announced that, since November 29, 2021, the complete elimination of the cost of freight in the tax base came into force for the calculation of customs duties.

This means imports will pay lower taxes and duties when entering the country. Through this measure, the Government seeks to reduce the impact generated by the constant increase in the cost of international maritime freight to entrepreneurs of Ecuador. 

As was explained by Miguel Ángel González, president of the Guayaquil Chamber of Commerce, customs duties take as a tax base the value of the product, as well as freight and insurance. The latter one rose by over 500% which has resulted in a higher payment of taxes. For example, 8 months ago, moving a 40-foot container cost $2.500, today it costs around $10.000.

The increase in rates is impulsed by the marked deficit of containers, through which 80% of international trade is mobilized. González said that this situation might continue throughout 2022.

source: eluniverso.com, ecuadortimes.net