The value of international transport is again fully taken into account as part of the calculation of the taxable base of tariff duties. This has been happening since last December 20, as reported by the National Customs Service of Ecuador (Senae).

The Andean Community has decided to partially reduce freight charges for customs value

This value was partially excluded from that calculation by Resolution 894 of the Andean Community of Nations (CAN), which is made up of Peru, Bolivia, Ecuador and Colombia, of March 16, 2022, as a strategy to counter the high costs of international freight caused by the pandemic that produced cost overruns for producers and in turn increased the price of final goods to the final consumer.

The first article of Decision 894 Note: Each member country may temporarily apply, for the tariff subheadings it determines, a reduction in the percentage of transportation and/or related costs, included in the first paragraph of Article 6 of Decision 571.

In September 2021, the National Federation of Ecuadorian Chambers of Commerce and the Chamber of Commerce of Guayaquil (CCG) stated that transportation costs have increased by 500% since the pandemic. On that occasion, the unions explained that the average price of transporting a 40-foot container in 2019 was $2,000, while in 2020 it rose to $5,000; and by 2021, it escalated and exceeded 11,000 dollars due to the lack of containers and the consequences of the pandemic.

The trade unions are asking the Government to exclude ship transport from the tax base for paying taxes

Following this panorama, CAN Decision 894 authorized “member countries to temporarily reduce a certain percentage of transport and/or related costs…”. The application of the percentage was valid until December 31, 2023, and at the request of the member countries, the extension can be assessed, once, for an additional year, which is an option that Ecuador did not use.

Now, from Senaa it is indicated that “foreign trade operators who use software “The private sector must update its system so that transport costs are taken into account in the calculation of the tax base.”