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

A relief measure was announced from the Government for the goods importing sector on a national scale.

The Ministry of Production, Foreign Trade, Investments and Fisheries in conjunction with the National Customs Service of Ecuador (Senae) reported that, as of November 29 of this year, the total elimination of the cost of freight in the tax base for the calculation of customs duties. That is, imports 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 as a tax base the value of the product, plus insurance and freight. The latter is the one that has had An increment of more than 500% which has resulted in a higher tax payment. For example, mobilize a 40 foot container It cost $ 2,500 eight months ago, currently it is trading up to $ 10,000.

The increase in rates is due to the marked container shortage, through which 80% of world trade is mobilized. “Companies have faced this problem throughout 2021 and analyzes suggest that this situation will continue throughout 2022,” said González.

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Therefore, consider that the total elimination of the freight cost In the tax base it will allow the entrepreneur 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 a costs reduction for the productive sector, says the ministry.

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

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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.

The Ministry of Production, Foreign Trade, Investments and Fisheries indicated, until last December 3, that the National Customs Service of Ecuador was implementing the necessary improvements in its computer system Ecuapass for the immediate application of this measure. (I)