Among the important pillars of the tax project, which is being processed by the Economic Commission of the National Assembly, is the incentive for investments. The purpose for which it has developed several mechanisms, among the most important, two significant legal entities, public-private alliances (PPP) and Free Trade Zone (ZF). The last one is not new. By the 1980s, it had proven to be a sharp fiscal instrument in the world, with enough power to cause profound economic and social change.

Option I

With such a background, he first entered our legal system in the 90s, with the purpose of developing an economically and socially depressed area: the province of Esmeraldas. It did not achieve its goal, as well as in several South American countries. Argentina placed it in the south of the pampas, where it had no opportunity. It just showed that an ill-conceived legal figure is of little use. The lack of infrastructure, no means of communication, urban consumer centers and skilled labor disables its muscles.

All of Latin America redesigned this legal figure and developed it correctly. It has now demonstrated its potential as an instrument of extraordinary economic and social development. Our neighbors have developed free zones that give entrepreneurs an exceptional competitive advantage in relation to the international market.

How to judge public finances?

Unfortunately, Ecuador has repealed all laws related to them and replaced them with ZEDES, which have not progressed. ZF needs a proper design. As stated in the proposal, it has an inconsistent legal structure that distorts its nature.

2. incl. of art. 36 provides: “goods, merchandise, raw materials, supplies, equipment, material machinery and other tools entering the free zones from the rest of the world shall be considered outside the territory of Ecuador, therefore exempt from payment of all taxes.” . local, taxes on foreign trade and customs formalities on imports.” This is a mistake because it is not advisable legal practice or technique to give definitions in legal norms, since they are short-term useful because their content is surpassed by social evolution that has a different dynamic and progress that responds more easily to the speeds typical of the time, business.

In addition, it contains a serious conceptual error for the definition of this legal figure, estimating that goods entering the ZF will be considered outside the territory of Ecuador. In doctrine, it is correct to resort to legal fiction and consider the Free Trade Zone to be foreign territory. For this reason, in the following articles it is easy to point out that the goods entering the territory of Ecuador from the FTZ are imported; and, conversely, those that leave the territory of Ecuador are exports.

The law is full of fictions that serve its full application, among other important functions, such as the fact that we all know the law, and ignorance exempts no one. (OR)