Other unions have also proposed measures such as the elimination of the ISD or that the cost of freight is not part of the tax base of the taxes.
The global logistics crisis that impacts the cost of shipping freight and the availability of containers, of which Ecuador is no stranger, has driven the different foreign trade actors: exporters, importers, members of the related logistics chain such as ports. , shipping companies and all service providers in this sector, to devise alternatives in search of minimizing the effects as much as possible.
These effects translate into higher costs for sending and bringing merchandise or supplies; in the latter case, up to more than 300% if they come from distant destinations such as China, for example, the first supplier in Ecuador.
One of these alternatives is the creation of a Logistics Emergency Front, revealed Xavier Rosero, executive vice president of the Ecuadorian Federation of Exporters (Fedexpor), who explained that this entity will act and will be based on addressing three fundamental pillars: logistics, competitiveness and security. .
“Logistics has to be competitive, safe and efficient because at this time we need to identify all those bottlenecks in which we can be much more dynamic in the movement of cargo at the country level,” explained Rosero, who specified that in this The scope is that when the containers arrive in Ecuador they do not remain delayed for so long, but, on the contrary, move in an agile way so that the importer’s container can be used by the exporter quickly.
The cost of bringing imports from China rose 187% this year compared to 2020, but is there an increase in prices for the final consumer?
Regarding competitiveness, the leader assured that they have detected that there are tax surcharges that generate that logistics have an additional cost to that required by international conditions, proof of that, according to Rosero, is that shipping freight continues to face collection of the foreign currency outflow tax (ISD).
“If we manage to reduce this segment of foreign currency outflow in shipping freight, we will have a consideration, not only in exports but also in imports,” said Rosero, who clarified that the ISD is only paid in Ecuador, because it is a tax that does not exist in the other countries
Regarding security, he cited the situation that occurs in the different ports of the country where cargo is detected contaminated by criminal groups that put the country brand at risk, which according to the vice president of Fedex for “so many years and decades it has cost us to possess” .
“We believe that all the efforts we make through logistics must ensure traceability and security standards in port and extra-port areas that allow us to guarantee that the cargo from the moment it leaves the farm, from the moment it leaves the port, has complete certainty. , complete security ”, added Rosero, who assured that the containers are contaminated in the ports.
However, Fedexpor’s proposal is not the only one, other unions have proposed various alternatives, such as the Guayaquil Chamber of Commerce.
Gabriela Uquillas, customs advisor for the union, indicated that a formal proposal was presented to the Government that seeks that the cost of freight does not form part of the tax base of taxes on foreign trade as is currently the case.
This, because the impacts of the logistics crisis are already reflected in the value of the merchandise and the scarcity of the products in the market, in terms of imports. Meanwhile, in exports it is denoted in the increase in price of Ecuadorian products abroad, which reduces their competitiveness.
Uquillas explained that import taxes are currently paid on the value of the products, plus the cost of freight, plus the cost of insurance. “Our request has been to eliminate the freight component to avoid that this extra cost, which currently and in some cases exceeds the value of the merchandise, does not generate an impact on the taxes to be paid to the State,” said Uquillas, who He assured that the logistics situation is estimated to last until 2022.
Freight to export wood to distant countries such as India increased up to 700% compared to the price prior to the COVID-19 pandemic
Rosero agreed with Uquillas, who assured that the committee proposed by Fedexpor will address this front (the situation of 2022) and other decisions in the course of that year and the consequences that remain for the following years.
For his part, Francisco Jarrín, president of the Guayaquil Chamber of Industries, assured that other countries in the region, such as Peru, have also requested measures similar to those proposed in Ecuador from their governments.
“Government entities have been asked to consider a reference logistics cost, since currently the cost of freight directly influences the calculation of the to value to be canceled in imports, thus having a double-sided problem: higher logistics cost, and higher cost to value to be canceled, “said the leader.
He added that his union also proposed that the reduction or elimination of the amount of the freight be considered to calculate the customs valuation and thus be able to compensate, at least, the increase in the tariff that is being generated; or, failing that, allow ISD exemption for those imports that come from countries with higher prices.
Felipe Ribadeneira, president of Fedexpor and the Ecuadorian Business Committee, also highlighted that Ecuador could also manage actions at an external level in search of support from international organizations.
“The external front does not depend (on us), but it can still be managed, the country can somehow seek support … the countries of the southern hemisphere somehow seek to apply pressure through the World Trade Organization (WTO) “Said Ribadeneira, who added other alternatives that could be applied in the domestic sector with the Logistics Emergency Front, such as analyzing cases in which maritime transport can be replaced by air and eliminating or deferring indirect taxes with the slogan that no lose a single export dollar and that the prices of Ecuadorian products remain competitive.
For now, Rosero announced that in the next few days they will have a meeting to learn about the advances in the technical table of foreign trade security that the Government has structured to articulate the needs that the private sector has already identified.
“Once we manage to consolidate the formation of this front, because it has been proposed, it is not that it is formally structured; The idea is to propose the first two or three actions in each of these three work pillars that allow for short-term results ”, explained the Vice President of Fedexpor, who added that other actions will require some additional coordination that will surely be implemented in the course of of the next few weeks. (I)
Paul is a talented author and journalist with a passion for entertainment and general news. He currently works as a writer at the 247 News Agency, where he has established herself as a respected voice in the industry.
