“Now that they let you bring in a 60-inch TV tax-free, I’m thinking of ordering one for a family member going to the States in November.” This is Marina’s plan, who has been wanting to replace her 32-inch screen with a larger one for months, but the brand’s prices and the specifications she is looking for are not within her budget.

That’s why he wants to take advantage of the latest update to the list of personal belongings of travelers created by the National Customs Service of Ecuador (Senae), which specifies the amount and type of items that can be brought in by air tax-free. And one of the items on that list that has been modified is precisely the TV size limit. Before it was allowed to carry one up to 32 inches, now it is allowed up to 60 inches.

With a new list of what travelers can bring in by air tax-free, Customs will focus scrutiny on more expensive goods brought in for sale

Passengers over the age of 18 will now be able to carry up to five liters of alcoholic beverages, compared to three liters before. Additionally, up to a maximum of 500 milliliters of perfume per passenger or 1000 milliliters of perfume per family group, contained in new bottles. Previous regulations allowed 300 per passenger and 600 per family group, among other changes.

What is the real benefit of the measure?

Economic analyst Jorge Calderón highlighted the economic benefit based on the savings that a traveler can achieve by entering the products that appear on the Senae list.

For example, in the case of televisions, savings could mean paying half of what it costs in Ecuador for a screen with the same or similar characteristics as those that can be brought from the United States or Panama, the two main destinations for television shopping. Ecuadorians.

Calderón pointed out that in the United States, a 60-inch screen, the maximum size Senae allows, can be found for $299 to $500, depending on brands; while a similar product in Ecuador is between $850 and $1,100 in the commercial trade, “double or even triple, depending on the brand.”

In the case of alcoholic beverages, savings are estimated to be in the range of 40% to 50%, also taking into account the types of alcoholic beverages and taking whiskey as a reference.

In the case of perfume, the savings ratio is slightly higher, between 50% and 60% savings if carried as passenger luggage compared to what can be found in stores in the country. For example, a 1,100 ml bottle of perfume that costs $128 in Panama can be found in Ecuador for $220, the expert said.

The costs to the client will be much lower than those paid by the official importer

A customs expert compared the prices of purchases in the United States and what it costs a formal importer to bring these products into the country:

Walmart’s benchmark 55-inch screen in the United States costs $497.99 plus tax of $32.37, for a total of $530.36 paid by the consumer.

A TV up to 60 inches and five liters of liquor, which is allowed to enter Ecuador by plane without paying taxes

Whereas to import the same TV, an Ecuadorian trader must pay an FOB (goods on board) price of $461.21, plus insurance and freight of $23.06, resulting in a CIF price (cost, insurance and freight) of $484, 27 USD. But add to that $24.21 ad valorem, $158.14 special tariff, and $79.99 VAT, which ends up costing $746.62. That’s more than $200 more than it costs a customer to buy one in the United States.

Buy in the United States:

Price on hanger: $497.99

Tax: $32.37

Final price in the US: $530.36

Costs for formal importers:

FOB (TV of same feature and brand): $461.21

Insurance and shipping: $23.06

CIF price: $484.27

Ad valorem: $24.21

Specific rate: $158.14

VAT: $79.99

Direct cost: $746.62

In the case of formal importers, all costs related to importation, internal logistics and marketing have not yet been taken into account, such as customs agents, storage, lease, warehouse staff, promotion, among others.

For this reason, the consulted expert does not agree with the update applied by Senae. “In order to bring a television into Ecuador, there are a number of taxes that must be paid… If today there is a possibility that a person can bring it in (without paying those taxes) it will obviously be cheaper, but it is completely Unlike formal trade, ideally should be to remove taxes from absolutely everything,” he suggested.

The scanners will be operational in all Guayaquil ports by the first half of next November, said Ralph Suástegui, director of Senaa.

He comments that the average citizen will perceive the measure as useful for cheaper purchases, but insists that the lack of coherence of public policy is not correct. “On the one hand, we tell those who have the privilege of traveling that they are entitled to cheaper things; and those who do not have the privilege to travel, then we condemn them to have more expensive things”, said the customs expert.