Codeofproduction

Econ. Rafael Correa Delgado
President of the Republic of Ecuador
Registro Oﬁcial™
Quito, wednesday, december 29th, 2010
# 351

SUPPLEMENT
Supplement # 351.

Code of Production
Code of Production Code of Production
Code of Production

SUMMARY: NATIONAL ASSEMBLY That Article 283 of The Constitution of the Republic That Article 320 of our Constitution establishes
of Ecuador establishes that the economic system is that production in any of its forms will be subject
NATIONAL ASSEMBLY CERTIFICATION. social and supportive; recognises a human being to principles and quality standards, sustainability,
In my condition of Secretary General of the National as the individual and the aim; tends towards a systemic production, to giving value to work and
CODE: Assembly, I certify that the the Project of Law- dynamic and balanced relationship between society, economic and social efficiency;
ORGANIC CODE OF PRODUCTION, COMMERCE State and market, in harmony with Nature; and
- Organic Code of Production, Commerce and AND INVESTMENT, was discussed and approved has as objective guaranteeing the production and That in Article 334 of the Constitution of the Republic
Investment. in the following dates: reproduction of the pertinent conditions that make of Ecuador dictates that the State should promote
possible the well-living; equitable access to the components of production,
NATIONAL ASSEMBLY FIRST DEBATE: 04-Nov-2010 evading concentration or stockpiling of elements
SECOND DEBATE: 16-Nov-2010 That Article 284, of The Constitution of the Republic of and resources for and of production, redistribution
Of. No. SAN-010-2038 PARTIAL OBJECTION: 16-Dic-2010 Ecuador establishes the objectives of the economic and suppression of privileges or inequalities of
December 22nd, 2010 policy, amongst which are included the stimulation access to them;
Quito, December 21st, 2010 of national production, systemic productivity and
Engineer Dr. Francisco Vergara O., Secretary General. competitiveness, the accumulation of scientific and That Article 335 of the Constitution of the Republic
Hugo Del Pozo technological knowledge, the strategic insertion determines that the State shall regulate, control
DIRECTOR OF THE OFFICIAL REGISTRY in the world’s economy and the complementary and intervene whenever needed, in interchanges
In your office. COMPLETE NATIONAL ASSEMBLY productive activities in regional integration; and economic transactions; and will sanction
exploitation, usury, stockpiling, speculative
Mr. President: THE PLENARY That numerals 1, 2 and 3 of Article 285 of The simulation, intervention of goods and services,
Constitution of the Republic of Ecuador prescribe as well as any form of detriment to the economic
The NATIONAL ASSEMBLY, in accordance to the Bearing in mind: as objects of fiscal policy: 1) the financing of rights and to the public and communal goods. Also
attributions that the Constitution of the Republic of services, investments and public properties; 2) the determines that the State shall define a price policy
Ecuador and the Organic Law of the Legislature, That numerals 2, 15, 16, 17, 26 and 27 of Article redistribution of income through transferences, directed to the protection of national production;
discussed and approved the Project of the 66 of The Constitution of the Republic of Ecuador, duties and adequate subsidies; 3) the generation shall establish the mechanisms for punishment to
ORGANIC CODE OF PRODUCTION, COMMERCE establish Constitutional guarantees for persons, of incentives for investment in different sectors of prevent the practice of private monopoly or oligopoly,
AND INVESTMENT. said guarantees require a normative that regulates the economy, and for the production of sociably or of abuse of market dominance and other disloyal
its practice; desirable and environmentally responsible goods competition practices;
In the session of 16th of December 2010, the and services;
Plenum of the National Assembly was aware of and That, in accordance with numeral 2 of Article 133 That Article 336 of the Constitution of the Republic
pronounced itself on the partial objection presented of The Constitution of the Republic of Ecuador, the That Article 304 of The Constitution of the Republic of Ecuador imposes on the State the duty of
by the Constitutional President of the Republic of organic laws have to regulate the exercise of the of Ecuador establishes the objectives of the encouraging and keeping vigilance for fair trade as
Ecuador. Constitutional rights and guarantees as the ones commercial policy; amongst which are included a means of accessing to quality goods and services,
determined on the above item; developing, strengthening and making dynamic promoting the reduction of intermediation distortions
By what has been stated, and as determined the internal markets of the strategic objective and promoting its sustainability, thus assuring
Article 138 of the Organic Law of the Legislature, That numeral 2 of Article 276 of The Constitution established in the National Development Plan; market transparency and efficiency, through the
we submit the original and certified copy of the of the Republic of Ecuador establishes that the encouragement of competition in equality of
text of the approved Project of Law, as well as the economic system has among its objectives the That article 306 of The Constitution of the Republic circumstances and opportunities;
certification of the dates of its discussion for its building of a fair, democratic, productive, supportive of Ecuador mandates the State’s obligation for
publication on the Official Registry. and sustainable economic system, based on the promoting environmentally responsible exports, That article 304, numeral 6, of the Constitution
equitable distribution of the benefits of progress, preferring those that generate more employment of the Republic of Ecuador establishes that the
Respectfully, signed) Dr. Francisco Vergara O., of the means for production and the creation of and added value, and in particular those exports economic policy shall have as its goal the avoidance
Secretary General. dignified and stable work; from small and intermediate producers and from of monopoly and oligopoly practices, especially in
the artisan sector; the private sector, and any others that might affect
That numeral 5 of Article 281 of The Constitution the functioning of the markets;
of the Republic of Ecuador, establishes the That Article 319 of the Magna Carta recognises
responsibilities of the State in order to attain diverse production organisation forms in the economy, That in virtue of the faculties conferred under
alimentary sovereignty, responsibilities among amongst others the community, cooperative, public Executive Decree 103, published in the Official
which it is included the establishment of preferential or private enterprise, associative, family, domestic, Registry Supplement No. 26 from February
financing mechanisms for the small and mid-size autonomous and mixed, so that it will encourage 22nd, 2007, and the Secretary for National
producers, aiding them in the acquisition of means the production that will satisfy internal demand and Planning has made and set in motion the
for production; guarantee an active participation of Ecuador in the National Plan for Well-Living which considers that,
international context;

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in face of the indicators of migration unemployment In the same manner, it shall be ruled by principles employment that contribute to value all forms o. The encouragement and diversification of
and poverty, an economic revolution that leads that allow an international strategic linkup, through of work and that abide with the labour rights of exports;
to a reactivation of production, generation of commercial policy, including its instruments for workers.
employment becomes necessary, thus making us a application and those that facilitate external p. The expediting of foreign trade operations;
society of owners and producers which overcomes commerce through a modern, transparent and e. The generation of an integral system for
the present system of social exclusion; in face of efficient customs system. innovation and enterprise, so that science and q. The advancement of activities of popular,
that, a proposal is made to democratise the means technology generate a change of the productive supportive and communitarian economy, as
for production as “a necessary condition to promote Art. 2. - Productive Activity. - The Productive matrix, and in helping build a society of owners, well as the worldwide strategic insertion and
equality and cohesion from the perspective of Activity shall be considered as the process through producers and entrepreneurs; promotion of its productive offer, in accordance
integral territorial development, which promotes an which human activity transforms supplies into with the Constitution and the Law;
economically social and supportive system”; licit goods and services, socially necessary and f. The guaranteeing of the exercise of rights of the
environmentally sustainable, including commercial people to have access, use, and enjoyment of r. The incorporation in all production policies, as a
That Objective number 11 of the National Plan for and any other activities that generate added value. the goods and services in equality, optimum transversal element, of the view of gender and
Well-Living, published in the Supplement of the quality and in harmony with Nature; of the view of inclusion of economical activities
Official Registry Nº 144 of March 5th, 2010, is “ Art.3. - Purpose. - The present code has as its of all people and nationalities;
to establish an economic social system that has objective regulating the productive process on its g. The enticement and regulation of all forms
solidarity and sustainability”; and, in conformity with stages of manufacture, distribution, interchange, of private investment in productive activities s. The boosting of mechanisms that shall allow fair
the attributions and competence of the National trade, consuming, handling of externalities and and sociably desirable and environmentally trade and a transparent market; and,
Assembly, and of exercising its Constitutional productive investments leaning towards the acceptable services;
faculties issues the following: execution of the Plan for Well-Living. t. The encouragement and support for industrial
This normative also seeks to generate and h. The regulation of productive investment in and scientific research, as well as for innovation
De conformidad a las atribuciones y competencias consolidate the regulations that boost, move strategic sectors of the economy, in keeping and technological transfer.
de la Asamblea Nacional, y en ejercicio de sus forward and incentivise production with more with the National Plan for Development;
facultades constitucionales expide el siguiente: value added; seeks to establish the conditions
for increasing productivity and for promoting the i. The promotion of technical and professional
ORGANIC CODE OF PRODUCTION, transformation of the productive matrix; seeks labour and civil competences, which shall allow
COMMERCE AND INVESTMENT to aid in the implementation of instruments for that everyone will obtain results of the change;
productive, fair, ecologically efficient development
PRELIMINARY TITLE and sustainable in the care of Nature. j. The strengthening of state control to assure that
productive activities will not be affected by the
Of the Objective and Scope of its Application Art. 4. - Ends. - This legislation has as its main abuse of market share, like monopolistic and
ends the following: oligopolistic practices, and in general all those
Art. 1. - Scope. - All natural persons, legal entities that will affect the functioning of the market;
and other forms of association that perform a a. The Transformation of the Productive Matrix,
productive activity, in any part of the National so that it shall have more added value, shall k. The stimulation of the country’s productive
Territory, shall be guided by the present normative. boost services, shall be based on knowledge development through a view of systemic
and innovation, as well as on sustainable and competitiveness, with an integral vision,
ecologically efficient environs. which shall include territorial development and
The scope of said normative shall include in its shall articulate in a coordinating fashion the
application the productive process as a whole, b. The Democratization of access of the means macroeconomic targets, the basic principles
starting with making good use of the elements for production, with special emphasis on micro, and patterns of society’s growth, the actions of
for production, the productive transformation, small, and intermediate businesses, as well as the producers and enterprises, and the judicial-
the distribution and commercial exchange, the the democratization of the actors of the popular institutional environs;
consuming, the taking advantage of positive and supportive economy.
externalities and policies that discourage negative l. The impulse of productive growth in zones of
externalities. As well it shall encourage at the c. The Fostering of national production, trade and lesser economic expansion;
national level all productive activities in all its levels sustainable spending of goods and services,
of development; shall encourage the actors of with social and environmental responsibility, as m. The establishment of the fundamental principles
the popular and supportive economy, as well as well as fostering its commercialisation and the and instruments for articulation of Ecuador’s
encourage the production of goods and services use of new environmentally clean technologies international commercial policy;
done by the various forms of association for and alternative energy.
production in the economy, recognised by the n. The promotion of the strategic substitution of
National Constitution. d. The Generation of quality and dignified imports;

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BOOK I
PRODUCTION DEVELOPMENT, MECHANISMS AND PUBLIC BODY OF COMPETENCE.

Code of Production
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BOOK I e. The implementing of a political policy at the Chapter II TITLE II
service of the development of all productive Institutionalise Productive Development
PRODUCTION DEVELOPMENT, parties of the country in particular; of the parties The Productive Sector.
MECHANISMS AND PUBLIC BODY OF of popular and supportive economies, and of Art. 6.- Sector Councils.- It belongs to the
COMPETENCE the micro, small and mid size enterprises, and Executive the definition of the policies pertaining The Promotion of Dignified Productive Work
guaranteeing food and energetic sovereignty to productive development and the promoting
TITLE I
as well as economies of scale, fair trade and its of investments through the Sector Council of Art. 8. - Honourable Salary. - The monthly
Productive Development and its Institutionalise strategic establishing in the world; Production, which shall be constituted and shall Honourable Salary shall be that which will cover
function according to what is established in the the basic needs of a worker as well as of his/her
f. The deepening of access to financing al all Regulations of this Code, framing its directives family, and shall be according to the Basic Family
Chapter I productive actors, through adequate incentives within the National System of Planning. Basket cost, divided by the number of recipients at
The role of the State in the Production and the regulation of the private, public and the home. The cost of the Basic Family Basket and the
Development popular and supportive financial system, as well This body shall have a Technical Secretary’s Office number of recipients at home, shall be determined
as the encouragement and development of that shall be under the Ministry that presides over by the official ruling agency of Statistical and
Art. 5.- Role of the State.- The State shall public banking destined to the developmental the Sector Council of Production and which duties National Census of the country, on an annual base,
encourage productive development and change service of the country; shall be the ones established in this Code and in which shall help as the basis for determining of
of the production matrix, through determining the rules. This Secretary’s Office shall have the the established Honourable Salary, decided by the
of policies and defining and implementing g. The betterment of the productivity of all parties necessary technical areas for designing public Ministry of Labour Relations.
instruments and incentives that shall leave behind of the common and supportive economy and policies and a policies program for productive
the specialised pattern of dependency of primary of the micro, small and mid size enterprises, fostering and investment, amongst others linked to Art. 9.- Components of the Honourable Salary.-
products of low added value. so as to participate in the internal market, the productive sector. The following components shall be added, only
and eventually reach economies of scale and and exclusively for the purpose of calculation, to
For the transformation of the production matrix, levels of quality production that will allow the Art. 7.- Inter-Sector Participation.- The Inter- determine if a worker gets the monthly Honourable
the State shall encourage productive development internationalization of their productive offer; Sector Participation in the development of said Salary:
through fostering: policies, shall be guaranteed by the Conductive
h. The development of logistics and of infrastructure Council of Productive Development and Foreign a. The monthly salary;
a. The economy’s systemic competitiveness, that boosts the productive transformation, for Trade; body strictly for the purposes of consultation
by providing public goods such as education, which end the State shall generate the conditions and obligatory institutional summons by who b. The Thirteenth Salary divided by twelve, which
health, infrastructure and by assuring the to promote the efficiency of maritime, air and presides the Production Sector Participation period of calculation and payment shall be
provision of the necessary basic services, land transportation under an all encompassing Council, in the way dictated by the rules. coherent with that determined in Art. 111 of the
such as to boost the productive vocation of focus and a multimodal operation; Code of Work;
the territories and the human talent of the This Consultive Council shall be made up of,
Ecuadoreans. i. The sustainable production through the amongst others, representatives of the private, c. The Fourteenth Salary divided by twelve, which
implementation of technologies and practices mixed, popular and supportive productive period of calculation and payment shall be
b. The establishing and use of a regulatory frame for clean production; and sectors, workers and autonomous decentralised coherent with that determined in Art. 113 of the
that shall guarantee that no economic party governments. The Consultive Council shall have Code of Work;
will abuse its market share, and this shall be j. The expansion through the national territory, ample and plural representation that reflects the
established in the law for this matter; of public productive policies so as to eliminate different sectors, territories and sizes of production. d. The variable commissions that follow legitimate
the territorial disequilibrium in the process of The Consultive Council shall not have public and usual market practices and which the
c. The productive development of sectors with development. resources for its functioning, but the Technical employer pays the employee;
strong, positive externalities, so as to add to the Secretary’s Office of the Sector Council for
general level of productivity and the development Production, shall provide logistical support for its e. The worker’s amount of share in profits of the
of the this Code faculties for innovation of all functioning and for the participation of its members. company, according to the law, divided by
economies, through the strengthening of the twelve;
establishment that this Code determines; The Consultive Council could propose or suggest
technical positions for the creation of policies that f. The additional benefits received by the worker,
d. The generation of an innovative, entrepreneurial shall be adopted by the entities responsible for acquired in money, due to collective contract,
and associative ecosystem through the drafting policies of production development, investment and that do not constitute legal obligations, and
and coordination of public, private, popular foreign trade. This Consultive Council’s integration the periodical voluntary contributions by the
and supportive initiatives for innovation and and functioning shall be normed in the rules of this employer to his/her workers, made in currency;
transferring of productive technology, and tying code, and in whatever not provisioned for in said and;
of investigation to the productive activity; Rules, through a ruling of the Sector Council for
Production. g. The Reserve Funds;

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In case a worker had done labour for a period less worker’s income tax, and shall strictly be temporary
than one year, the calculation shall be proportional to in nature until the Honourable Salary is achieved.
the time of employment.

The above mentioned calculation, in no way means TITLE III
the proportional monthly payment of the thirteenth
and fourteenth salaries, and the workers’ share of Generating an Integral System for Innovation,
profit, which amounts shall be paid in full and in the Technical Training, and Entrepreneurship
dates assigned in accordance with the law.
Art. 11.- System for Innovation, Technical
Art. 10.- Economic Compensation for the Training and Entrepreneurship.- The Productive
Honourable Salary.- From the start of fiscal year Sector Council shall annually design a plan for te-
2011, the employers mentioned below who have chnical training, which shall become a link in plan-
not paid all of their workers an amount equal to or ning the system for innovation, technical training,
above the monthly Honourable Salary shall calculate and entrepreneurship, as per the Productive Trans-
an additional obligatory economic compensation formation Agenda and the National Development
that will be paid to achieve the Honourable Salary Plan.
to those workers who have made less than outlined
in Art. 9. This system shall link the work of various public
and private institutions, in their different stages of
The economic compensation mentioned in the growth and with their different tools, in a One-Stop-
above subsection, shall be compulsory for those Customer-Service virtual window, decentralized so
employers who: it aids in disseminating information on: training for
entrepreneurial initiative, financial instruments, risk
a. Are persons or legal entities that are required to
keep accounting;
capital, development banking geared to the finan-
ce of enterprises, the National Guarantees Fund,
technical assistance and linking of decentralised,
BOOK II
THE DEVELOPMENT OF PRODUCTIVE INVESTMENT AND ITS INSTRUMENTS.
b. At the end the fiscal year had any profits; and, autonomous governments, not-for –profit organi-
zations, and universities, amongst others.
c. In the fiscal year had paid anticipated income
taxes. Art. 12.- Risk Capital.- The State may give
funds for risk capital through legal and financial
This calculation for the amount of the economic mechanisms. The temporary nature of investments
compensation shall be based through the thirty first made by the State shall have been previously agreed
of December of that fiscal year and it may be paid upon both for time and form; giving priority to the
up until March, once a year, amongst those workers disinvestment of the State in companies where it
that did not receive the Honourable Salary during is partial or total owner, in favour of the employees
the previous fiscal year. If needed, for this economic and workers of said companies, as well as in favour
compensation the employer shall destine an amount of the community where those companies work,
equivalent of up to a hundred per cent of the profits within the conditions and times established for each
of the fiscal year. project.

In case the amount described before does not cover
all of the Honourable Salary of all workers with rights
to the Economic Compensation, the latter shall be
proportionately divided amongst said workers, this
compensation coming from the difference between
the components of a Honourable Salary and the
Honourable Salary as stated in Art. 8 of this Code.

This Economic Compensation is additional, shall not
be an integral part of the salary, does not constitute
taxable income for Social Security nor for the

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e. Persons or legal Ecuadorean entities owners Chapter II Constitution prohibits all manners of confiscation.
BOOK II that exercise control of an investment made Therefore, confiscation of national or foreign
in Ecuadorean territory. Also included under General Principles investments shall not be decreed or executed.
this concept are national citizens or legal
THE DEVELOPMENT OF PRODUCTIVE Ecuadorean entities, or from the cooperative, Art. 17.- Non-Discriminatory Conduct.- National The State can declare, exceptionally and in
INVESTMENT AND ITS INSTRUMENTS associative and community Ecuadorean sectors and foreign investors; societies, companies accordance with the Constitution, the expropriation
made in Ecuadorean territory. The national or entities from the cooperative, popular, and of real state with the sole purpose of executing
TITLE I Ecuadorean citizens that have dual citizenship, supportive economy, in which these partake as social development plans, environmental
or expatriates residents of this country for the well as well as their legally established investments sustainable management, and collective well being,
Promotion, Encouragement, and Regulation of purpose of this code, will be considered national in Ecuador, with the limitations provided by in the following the legally established procedures in a
Productive Investments investors. Constitution of the Republic, shall have equality of non-discriminatory way, with previous assessment
conditions with respect to administration operation, of value, and the payment of fair and adequate
Chapter I It shall not be considered a national investment expansion, and transfer of their investments, and indemnification in compliance with the law.
that made by a national or foreign company whose shall not be the subject of discriminatory or arbitrary
Productive Investment shares, participation property or control, both total measures. Foreign investors and investments shall
or majority, belongs to a national citizens or legal have full protection and equal protection of the law, Chapter III
Art. 13.- Definitions.- The following definitions are Ecuadorean entity. in such way that they shall have the same protection
for the purposes of the present regulation: that Ecuadorean nationals receive within the national The Rights of the Investors
Art. 14.- Application.- The new investments shall territory.
a. Productive Investment. - Productive Investment not require authorizations of any nature, with the Art. 19.- Rights of the Investors.- The following
shall be understood, irrespective of the type of exception of those that the Law expressly determines The State in all its governmental levels, exercising rights shall be recognised to the investors:
property, as the cash flow destined to produce and that are derived from the corresponding their public authority, could give differentiated
goods and services, to enlarge productive territorial arrangement, having to comply with the treatment, as a way of incentives, in favour of new a. Freedom of production and commercialisation of
capacity, and to generate employment sources requisites that this regulation demands to benefit and productive investments, which will be given in licit goods and services, socially desirable and
in the national economy. from the incentives stated here. function of sectors, geographical location, or other environmentally sustainable, as well as freedom
parameters which they will have to comply with, of pricing, with the exception of those goods and
b. New Investment. - For the incentives to apply The benefits of this code shall not apply to those according to the terms provisioned in this Code and services which production and commercialisation
to new investments, with the understanding investments by citizens or legal entities domiciled in its Regulations. are regulated by the law.
that new investments are cash flow destined to tax havens. The Code shall regulate the parameters
increment economic capital, it has to be through of incentive application for all and any sector that Foreign investments shall have a direct b. Access to administrative and control actions that
effective investment in productive assets, which request it. complementary role in the strategic sectors of the the State establishes to avoid any speculative
will enlarge future production capacity, generate economy that require investment and financing to practice of private monopoly or oligopoly, or
a larger production of goods and services, or The benefits and guarantees recognised by this reach the objectives of the National Development abuse of market dominance and other disloyal
generate new employment sources, in the Code shall be applied with no detriment to the plan, and subject to applicable legislation. In the competition practices;
terms provisioned for in the regulations. The Constitution of the Republic and of other laws, as rest of the economy’s sectors, foreign investors can
mere change of proprietorship of productive well to other international agreements duly ratified directly participate without the need of previous c. Freedom of import and export of goods and
assets that are already in production, as well as by Ecuador. or additional authorisation provided for national services, with the exceptions of those limits
the credit obtained to acquire said assets, under investors. established in the norm and in accordance with
this Code does not constitute new investment. Art. 15.- Competent Law Body.- The Productive the international agreements in which Ecuador
Sector Council will be the State’s supreme governing Governmental entities shall promote in a priority partakes;
c. Foreign Investment. -Investment that is property organ in investment matters. way the attraction of direct foreign investment
of foreign national citizens or that is run by according to the needs of, and priorities defined in, d. Free transfer abroad, in currency, of the periodical
foreign legal entities domiciled abroad, or that Art. 16.- Manners for Investments.- The ways for the National Plan for Development, the Productive earnings or profits that come from registered
implies money not generated in Ecuador. investments and its exceptions shall be established Transformation Agenda, as well as in the different private investment, once the duties concerning
in the regulations of this norm. developmental plans of the decentralised the workers’ share, tax obligations, and others
d. National Investment. - Investment that is autonomous governments. Additionally, the established in this code are complied with.
property of Ecuadorean national citizens or investments made in other sectors of the economy
that is run by legal Ecuadorean entities, or by will have the same benefits from State policies of e. Freedom to send resources that are obtained
expatriates residents of Ecuador, unless they productive stimulus, in terms of the present norm. through total or partial liquidation of the
demonstrate that it is capital not generated in companies in which the registered foreign
Ecuador; and, Art. 18.- Ownership Rights.- The property of investment was made, or through the sale
investors shall be protected in the terms established of shares, participations, or acquired rights
in the Constitution and other pertinent laws. The because of investments made, once the

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tributary obligations as well as other pertaining a) Draw up plans and projects for the development TITLE III
responsibilities, as established in legal norms; and national advancement of national, regional, 2. Sector and for fair regional development: For
provincial and local production, in the frame Incentives for Productive Development sectors that contribute to the change of the energy
f. Freedom to acquire, transfer or transfer ownership of the Intercultural and Plurinational State, matrix, strategic substitution of imports, fostering
of shares participations or rights of ownership to guaranteeing the rights of persons, community Chapter I of exports, as well as for rural development in
third parties, in the country or abroad, abiding by and nature; all of the country and urban zones, as specified
the formalities provided in the law; General Rules about Incentives and Stimulus in the second corrective disposition (2.2), total
b) Support and consolidate the Community for Economic Development exoneration, for five years, of Corporate Income
g. Freedom of access to the national financial Productive Partner, for which it shall make Tax to new investment that might develop in these
system and to the stock market, to obtain long, programmes and projects with public Art. 23.- Incentives.- The incentives of the sectors.
mid- or, long term financial resources. financing to recuperation, support and tributary nature that this norm recognises shall be
technological transfer, investigation, training incorporated as reforms to the pertinent tributary 3. For Economically Depressed Zones: besides
h. Freedom of access to the mechanisms and commercialization and public purchases norms as stated in the Corrective Dispositions at the from these investments benefiting from the general
for promotional, technical, cooperation, mechanisms, amongst others; end of this Code. and sector incentives afore mentioned, new
technological assistance and other equivalents; investment in these zones shall be given priority,
and, c) Promote equality of opportunities through the Art. 24.- Classification of the Incentives.- The giving, for five years, an additional tax benefit by
giving of benefits, incentives and production tax incentives that this code establishes are of three deducting 100% of the cost of contracting new
i. Access to the rest of general benefits and means; sorts: employees.
incentives provided for in this Code, other laws
and applicable normative. d) Promote Nourishment Insurance through 1. General: Those that apply to investments that are
preferential financing mechanisms for the carried out in any part of national territory. Art. 25.- The Contents of Investment
micro, small, mid-, and big ventures of the They consist of the following: Contracts.- Upon the investor’s initiative,
Art. 20.- Tributary Regime.- In tax matters, communities, peoples, indigenous, Afro- investment contracts may be signed, which shall
national and foreign investments shall be subject Ecuadorean and montubios nationalities; a. The progressive reduction of three percentage be held through a Public, in which shall appear the
to the same Tributary Regime, with the exceptions points of Corporate Income Tax; treatment given to investment, under the scope of
provided for in this Code. e) Finance productive projects of the communities, this Code and its Regulation.
peoples, indigenous, Afro-Ecuadorean b. Those established for special growth zones,
Art. 21.- Obligatory Standards.- National and montubios nationalities that propel the providing they comply with the criteria for their Investment contracts may give stability over tax
and foreign investors and their investments, inn agricultural, livestock, artisan, fishing, mining, conformation; incentives, during the time the contract is valid,
general shall be subject to observance and faithful industrial, tourist production and others of this as per the prerogatives of this Code. In the same
compliance of the laws of this country, and especially segment. c. The additional deductions for calculating manner these investments contracts shall detail
the ones relating to the labour, environmental, Corporate Income Tax, as mechanisms to the supervision and regulation mechanisms for the
tributary and social security aspects in use. The Branches of the Ministries or national Secretary encourage the improvement of productivity, compliance of the investment parameters expected
Offices that have competence to foster the popular, innovation, and eco-efficient production; in each contract. The Council for Sector Production
TITLE II supportive and community economy, shall present shall establish the parameters that investments that
at the end of the annual economic activity, to the d. The benefits for companies opening the social ask to be subjected to this regime, must comply
Productive Development of the Popular, Ministry that presides over the Council for Sector capital in benefit of its workers; with.
Supportive and Community Economy Production, reports on the money invested in
programmes for the generation of aptitudes, e. The facilities of payment in foreign commerce
Art. 22.- Specific Measures.- The Council innovation, entrepreneurship, technology, taxes; Art. 26.- Validity.- Investment contracts shall have
of Sector Production shall establish policies for betterment of productivity, associativity, fostering and validity up to fifteen (15) years from the date of its
boosting the popular, supportive and community promotion of exportable supply, commercialization, f. The deduction for calculating Corporate Income inception, and its validity shall not limit the authority
economy, as well as democratic access the elements amongst others, with the objective of fostering this Tax from the additional compensation on of the State to exercise control and regulation,
of production, without detriment to the competence segment of the economy. payment of the Honourable Salary; through its appropriate organisms.
of decentralised, autonomous governments and
the specific institutionalising created for the entire g. Exoneration of the Currency Transfer Tax for Upon request by the investor, and as long as the
development of this segment, in accordance to operations with external financing; Council for Sector Production considers pertinent,
what the law regulates on this matter. according to the type of investment that is evolving,
h. Exoneration, for five years, of Anticipated investment contracts may be extended for one
Additionally, to foster and strengthen the popular, Income Tax Payment for all new investment; time, up to the same originally awarded time period.
supportive and community economy, the Productive
Sector Council, shall execute the following actions: i. Reforms on calculation of the Anticipated
income Tax Payment.

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Art. 27.- Solution of Conflicts.- In the investment The Technical Secretary Office, in conjunction with c. Non-compliance on the investor’s side to payment of taxes plus the corresponding interest,
contract with foreign investors, arbitration clauses the Internal Revenue Service, may make controls execute the minimum conditions for the that would have had to be paid, had there not
may be agreed upon to solve controversies that to verify compliance of the criteria that caused authorised investment within the provided time been access to the tax incentives acknowledged
might happen between the State and the investors. the incentive, related to the investment made, period for the respective investment project; by this rulings, for the time period in which the
be applied. The regulations shall establish the non-compliance took place; excepting fortuitous
The controversies between a foreign investor and parameters for execution of this monitoring. d. Transfer of the investment, without abiding by circumstances or force majeure, properly
the Ecuadorean State, which had been pursued the requisites and conditions provided for in the documented and accepted by the Council for
and exhausted through administrative routes, shall If the beneficiary does not comply with what is regulations. Sector Production /Productive Sector Council. All of
try to be resolved in an amicable manner, with direct required, the Technical Secretary Office shall put the above are without prejudice to the assessment
dialogue within a period of sixty (60) days. If a direct into knowledge of the Council for Sector Production e. Deceitful non-compliance of labour regulations, rights of the Tax Administration, in compliance with
solution between the parties is not arrived at, there /Productive Sector Council, a detailed report with Social Security taxes, or environmental laws of the law.
shall be a compulsory mediation instance within the respect to the seriousness of the identified non- the country, verified by the competent authority;
three (3) following months from the inception of the compliances, which were not fixed, as well as TÍTTLE IV
formal beginning of direct negotiations. recommending the implementation of the pertinent f. Judicially proved deceit in the documents or
punishment, depending on the gravity of said non- information provided, which served to obtain Special Economic Development Zones (ZEDE)
If after this mediation instance the controversy still compliances. the incentives for investment;
exists, the conflict may be subjected to national Chapter I
or international arbitration, in accordance to the Art. 30.- Special Ineligibilities.- The President of g. Obstructing or hindering the verification by the
valid treaties, of which Ecuador is a party. The the Republic, the Vice president of the Republic the State’s entities competent in this matter, or The Making up of and the Purpose of Special
decisions of this Arbitration Tribunal shall be of law, Ministers and secretaries of the nation, and the public resorting to any means to induce these entities Economic Development Zones
the applicable legislature shall be the Ecuadorean servants of the governing entity of the production or their public official to err, with the intent of
one, and the binding judgment in arbitration, shall policy, neither directly nor through a third party, even benefiting from the benefits that the State Art. 34.- The National Government may authorise
be definitive and binding to all parties. on partnership companies that have direct or indirect acknowledges; the establishing of Special Economic Development
participation of its capital assets, as well as those who Zones (ZEDE), as a customs destination, in
If after six (6) months the administrative route has had had direct or indirect connection in any stage of h. Bribery or intention of bribery of public officials in especially determined spaces within the national
been exhausted, the parties have not arrived to the process of access to the incentives, or that may charge of control and supervision of the benefits territory, for setting up new investment, with the
an amicable agreement, neither have subjected have a degree of responsibility in the procedure, and acknowledged by this rulings, upon conviction incentives that are detailed in the present norm,
to arbitrational jurisdiction for the solution of their for whose activities or functions, it may be reasonably by the competent judicial authority, without which shall be conditioned to the compliance of the
conflicts, the controversy shall be shall be brought presumed that they have privileged information detriment to the penal actions that might ensue; specific objective of this Code, in compliance with
to the attention of the Ordinary National Justice. Tax of these processes, as well as the spouses of and, the parameters set by the regulations and those
issues shall not be subject of arbitration. the dignitaries, public official and employees provisioned for in the Plan of Territorial Order.
aforementioned, and anyone not up to date with their i. Benefit from the incentives of those who have
Art. 28.- The application of incentives.- The tax , labour, environmental and Social Security duties. been forbidden by law. Art. 35.- Location.- Special Economic
Technical Secretary Office of the Council for Sector Development Zones (ZEDE) shall be located in
Production /Productive Sector Council, shall Chapter II especially determined spaces within the national
coordinate with the pertinent control bodies, the Art. 32.- Revocation.- - Without detriment to the territory, taking into account conditions such as
appropriate execution of the benefits recognised Infringements of and sanctions for the civil or penal actions that might ensue performing environmental preservation, territoriality, potential
for each investment project, not being able to investors any of the causals provided for in the previous of each site, road infrastructure, basic services,
demand from the investors other requisites asides Article, shall generate the revocation of the connectivity to other parts of the country, amongst
from the ones established in this legislation. Art. 31.- Infringements.- The following shall granted benefits. The revocation provided for in others, previously determined by the ruling
constitute causal of infringements by investors who this chapter, shall be decided through a resolution body in productive development matters, and in
Art. 29.- Monitoring.- The monitoring of the benefit from the incentives provisioned by this ruling: motioned by the Technical Secretary Office of the coordination with the body in charge of National
duties taken on by the investors, be them legal or Council for Sector Production /Productive Sector Planning, and shall be the subject of special
contractual, shall be in charge of Secretary Office a. Non-compliance on the side of the investors, of Council. The investor, upon whom sanctions were treatment in regards to foreign trade, tax and
of the Council for Sector Production /Productive making timely contributions or acquisitions to imposed, can present an administrative appeal financial reporting.
Sector Council. which they have committed themselves, within before this Council, following the procedures
the planned period of time for the respective established in the Statute of the Executive’s Judicial Art. 36.- Types.- Special Economic Development
The Internal Revenue Service shall send to the investment project; and Administrative System. Zones (ZEDE) may be the following types:
Technical Secretary Office, a quarterly list of the new
companies that have applied for the incentives, so b. Total or partial withdrawal of the investment, as Art. 33.- If the grounds for revoking are any of a. For carrying on activities for transfer and
that the latter entity shall make an electronic registry long as this implies non-compliance of legal or the established in literals e, f, g, h, I, of Art. 31, disaggregation of technology and innovation.
with this information. contractual obligations; it shall be additionally determined what are the In these zones all types of ventures and
reimbursements of the given incentives, and the projects for technological development,

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electronic innovation, biodiversity, sustainable sector that is taking place in the authorised zone, d. Resolve the queries that might arise with respect the interested party may ask, under the initiative
environmental or energy improvements; and that the ZEDE has, within its constituent to the application of this code in regards to the of public sector institutions or of decentralised,
instrument, the authorisation to operate under the Special Economic Development Zones; autonomous governments.
b. For executing operations of industrial typology that corresponds to the activity that may Investment used for the growth in these zones can
diversification, that may be of all types of be installed. e. Impose sanctions set in this regulation to those be public, private, or mixed. Also, the managing
innovative industrial enterprises, especially administrators and operators that do not company as well as the operators that set up in
directed towards the export of goods with the Art. 37.- Customs Controls.- The people and comply with the convened upon dispositions for said zones can be private individuals or legal
use of quality employment. In these zones, it is transportation means that go in or out of a ZEDE, its functioning; entities, private, public, mixed, national, or foreign.
allowed to carry on all types of active perfecting its boundaries, and the entry and exit points of In order to evaluate the convenience of authorising
activities like: transformation of, manufacturing the ZEDE, shall be under vigilance of Customs f. Provide the general and specific requirements, the set up of a Special Economic Development
of (including assembly, and adaptation to Administration. Custom control may be carried out including those of national origin and value Zones (ZEDE), a general description shall
other merchandise) and repair of merchandise, before entering, during the stay of the merchandise added, so that transformed manufactured be required, which will include the requisites
(including its restoration or conversion) in the zone, or after its exit. goods (including assembly, joining and established in the rules of this norm.
especially of all types of goods for export and adaptations to other merchandise) or repaired A ZEDE shall not be created in spaces that are
the strategic substitution of imports; and; The procedures for control that shall be established (including its restoration or conditioning) part of the National System for Protected Areas,
Customs Administration, shall not constitute an within Special Economic Development Zones or of National Forestry Heritage, or that have been
c. For developing logistical services, such obstacle for the flow of productive processes (ZEDE) may be nationalised, with or without declared Protected Woods or Protected Vegetation
as: storing of cargo with consolidation and taking place in the ZEDE, and shall be simplified for total payment or partial payment of duties. To or that are fragile ecosystems.
deconsolidation, classification, labelling, the entering and exiting of the merchandises from the effect of establishing this procedure, the In the license to operate the ZEDE, there may be
packaging, repackaging, refrigeration, inventory these territories. customs value of the merchandise that may be an itemization of the incentives that apply to each
management, dry ports management or inside nationalised shall be taken into account, having particular case, both for managers as well as for
cargo terminals, coordination of national and Art. 38.- Administrative Statute for Settlement.- to subtract the national added value and/or the operators.
international distribution of merchandise, as well The Special Economic Development Zones (ZEDE), value of national or nationalised goods that have
as maintenance or repair of vessels, airplanes shall be created through authorization from the been incorporated to the production process of Chapter II
and land transportation vehicles for the Council for Sector Production /Productive Sector the good to be nationalised, the compliance to
transport of merchandise. Preferably these type Council, taking into account the potential economic the regulations on origin of national products for Managers and Operators of the Special
of zones shall be set up inside of or adjacent growth of the territories where the especial zones export, amongst other, should it be appropriate. Economic Development Zones (ZEDE)
to seaports and airports, or near border zones. are set up, the objectives, plans and strategies of These procedures will be exclusively for the
Exclusive storage of cargo or stocking shall not the National Development Plan, the Productive calculation of tariff rights. To the effect of Art. 41.- Managers of ZEDE.- The legal entities
be authorised within this type of zones. The Transformation Agenda, and any other regional plans, payment and collection of Value Added Tax private, public, or of mixed economy, national
logistical services shall be directed to promote based on the requirements and formalities that shall (VAT), the IRS’s established procedures shall be or foreign, that may make a request for it, may
the physical facilities of seaports, airports and be determined in the regulations of this code. followed; constitute themselves in managers of Special
border crossings, that shall serve to further Economic Development Zones (ZEDE), as long as
the positive net value of foreign trade and Authorization shall be granted for a period of twenty g. Verify, in coordination with the environmental they obtain permission to do one of the activities
local supplying under allowed parameters, in (20) years, which can be extended, subject to the entity in charge, that the management in the described in Art. 36 of the present Code. Its function
compliance with the requirements established evaluation established in the Regulations, and may Special Economic Development Zones (ZEDE) shall be the growth, management and operational
on the Regulations of this Code. only be revoked before the time period convened are not creating environmental impacts that control of the ZEDE, in congruence with the duties
upon by having verified any infringements that as a gravely affect the region; of the by-laws of this Code and the ones that shall
The goods that shall be part of these processes, result revoke the authorization. be determined by the Productive Sector Council.
shall serve to diversify the supply of exports; h. The rest that the Regulation of this Code
however, its nationalization shall be authorised Art. 39.- Public Jurisdiction.- The following shall establishes. The responsibilities and control processes with
for consumption within the country in those be the attributions of Council for Sector Production which the managers shall comply, shall be
percentages of production that the ruling of the /Productive Sector Council, for the establishment of To carry on supervision and operative controls of established by the Productive Sector Council
present Code determines. These limits shall not ZEDE: the running and compliance with the objectives of
apply to the goods obtained from the processes of the Special Economic Development Zones (ZEDE), Art. 42.- Operators of ZEDE.- Operators of
transfer and innovation of technology. a. Dictate the general policies for functioning and the Ministry responsible for industrial fostering, ZEDE are individuals or legal entities, public,
supervision of the ZEDE; shall provide an executive authority of the policies private or mixed, national or foreign proposed by
Private individuals or legal entities that establish that may be established by the Council for Sector the ZEDE’s managing company and authorised by
themselves in the special zones, may operate b. Authorise the set up of Special Economic Production /Productive Sector Council, in relation the Productive Sector Council, which may perform
exclusively in one of the aforementioned ways, Development Zones (ZEDE) that comply with to the ZEDE. authorised activities in these zones of national
or may diversify their operations within the same the provided legal requirements; territory, for which boundaries have been set.
territory, as long as the variations of activities befit c. Qualify and authorise administrators and Art. 40.- Request for ZEDE.- To set up a
the expedition of productive linking of the economic operators of ZEDE; Special Economic Development Zone (ZEDE),

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Operators of ZEDE may exclusively perform the imposed for infractions made, according to this the deed or omission done, without prejudice of e. Not compliance of established procedures for
activities for which they were authorised in their Code and its Applicable Regulations. civil and penal actions that take place. entry and exit of merchandise of the Special
corresponding qualification, under the terms of Economic Development Zones (ZEDE);
this Code, its by-laws, in the befitting customs Art. 46.- Customs and Foreign Trade Art. 50.- Minor Infringements.- The following
legislation and the norm passed by the Productive Treatment. Because it is an exceptional judicial are considered minor infringements punished with f. For non-compliance of the chronograms
Sector Council. structure, Special Economic Development written reprimand or fine. regarding work, equipment and investment,
Zones (ZEDE) both for managers as well as for which shall be carried out in the times
In the same manner, they shall ascertain that operators, shall receive the Customs treatment a. The non-compliance of duties of the manager, determined in the documents that were the base
their activities comply with the parameters that that the legal Customs Regime grants them, which shall be in the authorisation and that do for qualifying a Special Economic Development
the labour and environmental norm, national and exempting duty payments on foreign merchandise not constitute serious infringements; Zones’ (ZEDE’s) Operator, or for the granting of
international, through licensed environmental that enter said zones for the performance of the authorisation as Manager;
processes if needed, technology transfers and local authorised processes. The procedures for entry b. When the Operator does not inform the Manager
personnel training. and exit of ZEDE’s merchandise, as well as the of entry, use, and exit of goods and products g. The non-compliance of any other regulation not
usage of waste, shrinkage and surplus, their to be manufactured, transformed, processed, provided for as a serious infringement.
Art. 43.- Prohibited Links.- The managers shall possible nationalisation, re-export or destruction of commercialised, or used, as well as the use of
not have simultaneously the license of operator, deteriorated merchandise, shall be regulated by the labour and sale of currency that are made in the Art. 51.- Serious Infringements.- Serious
neither shall they have any economic or company rules of this Code. country, within the time period provided for in infringements shall be those behaviors that imply a
links with the rest of ZEDE’s operators, under the Regulations. performance inexcusably lacking in thoroughness
penalty of revocation. To the effect of operations, this Code shall establish and carefulness, or those in which there is a
the parameters in which the entry of merchandise c. For not presenting the Internal Regulations relapsing of a minor infringement.
Art. 44.- Support Services.- Any individuals to Special Economic Development Zones (ZEDE), for the operation of each Special Economic
or legal entities, public or private, that want to shall be considered an export, and also for when Development Zones (ZEDE) within the stipulated The following are serious infringements punished
set up a Special Economic Development Zones goods coming from Special Economic Development time period; with interruption, cancellation of qualification as
(ZEDE), to provide support services, or support Zones (ZEDE) enter the national customs territory, operator, or the revocation of authorisation:
to the operators set up in the authorised zone, shall be considered an import d. When the Administrators do not keep the
shall present the request to the respective following information through organized, a. Non-compliance of any of the objectives
management company, which will approve or deny Art. 47.- Entry to another regime.- Capital assets computerised systems, on line with the indicated in the authorization for Special
the request upon a previous favourable ruling from entering the country through a temporary or free Internal Revenue System, the Ecuadorean Economic Development Zones (ZEDE), within
the Technical-Operational Unit, responsible for zone of foreign trade may finish its regime with Customs Service, and the Special Economic the stipulated time period;
exercising supervision and control of the ZEDE. the re-export of the assets to a Special Economic Development Zones (ZEDE):
Development Zones (ZEDE), as long as the operator b. The non-compliance with the prohibition of non
The companies that want to set up support services has requested its respective entry for use in 1. Entry and exit of merchandise of Special linkage provided for Managers and Operators;
for the operators of Special Economic Development authorised activities. Economic Development Zones (ZEDE) with
Zones (ZEDE) shall comply with all security and origin and destination identification; c. When the Managers do not verify and control
control regulations that are a by-product of this Art. 48.- Valuation of Capital Assets.- The assets the activities of their Operators, using the
Code, its regulations, as well as the directives that of foreign origin used in an authorised zone, for 2. The charts of contents of raw materials established legal mechanisms in this Code,
Sector Productive Council shall issue. In the case of nationalization effects, shall be valued considering that shall be converted into intermediate its Regulation and the other norms applicable,
private financial institutions, national or foreign, they the state in which they are at the moment of or final products in the Special Economic informing of infringements to the pertinent
shall obtain authorisation from the Superintendent registering documents for the Statement of Use. Development Zones (ZEDE), bodies, such as to adopt pertinent administrative
of Banks, which shall set the requirements with and legal measures;
which these companies must abide. Chapter III 3. The partial processing operations to which
the Norm refers; d. Refusal to, admit entry to, verification of, or
Infringements and Sanctions for Special audits of Special Economic Development
Art. 45.- Responsibilities- The operators and Economic Development Zones (ZEDE) 4. The authorised change of regime; Zones (ZEDE) by its appropriate administrative
managers of Special Economic Development bodies, or by the agreements for each case, or
Zones (ZEDE), with regards to income, possession, Art. 49.- Infringements.- Infringements for non- 5. The inventories of its Operators; obstruction of these practises;
maintenance and final destination of all merchandise compliance of provisions for Special Economic
introduced or processed within the authorised Development Zones (ZEDE) shall be classified 6. The tax-free transactions made; and e. The entry into Special Economic Development
zones, shall have solidarity responsibility and shall as minor or serious. The punishments provided Zones (ZEDE) of merchandises such as: arms,
legally be held accountable for the adequate and for shall be applied by the controlling Technical 7. Sales made within de territory of Special explosives and ammunition, illegal drugs of any
legal use and destination of said merchandise. The Operative Unit of special zones or by the Productive Economic Development Zones (ZEDE), with nature, or products that are against health,
established solidarity responsibility applies to unmet Sector Council in accordance to their competence the buyers’ identification. environment, and public safety, or morals,
Customs Tax duties, and the monetary punishments and considering the gravity and consequences of that do not have express authorisation from

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the technical Operative Unit of the Special punishments, are bound to perform the remedial
Economic Development Zones (ZEDE), without process in accordance with the Environmental
prejudice to penal or civil actions that these Norm in use, and with adherence to Constitutional
infringements imply; and, norms and to the law.

f. When the activities that Operators make The units may apply the provisioned punishments
cause environmental damage or incur in for Minor Infringements with legal capacity for
non-compliance of the National Plan for operative control of Special Economic Development
Environmental Handling, in case they occur; Zones (ZEDE). The Sector Production Councils
shall adopt the sanctions provisioned for Serious
The carrying out of any of these causal’s, as well Infringements. For applying sanctions detailed in this
as the repetition of a minor infringement, shall be article, the pertinent administrative process shall be
monetarily punished or by stoppage of the Manager set up and whose procedure shall be established
or Operator up to three (3) months. In case of the Regulations of this Code. Suspension of
relapse, they shall be punished with the cancellation authorisation, cancellation, or revoking, entail the
of the Operator authorisation, or by revoking said suspension or termination of the tax incentives
authorisation whether it is a Manager or Operator. granted, for the same time period as the duration
of the sanction.
To application of the penalties for the above-
described infringements shall not be in detriment of
any other legal responsibilities.

Art. 52.- Sanctions.- The Managers and Operators

BOOK III
of Special Economic Development Zones (ZEDE),
shall be sanctioned for infringements of this Chapter
depending on the seriousness of each case, with:
For Minor Infringements: ENTREPRENEURIAL DEVELOPMENT OF MICRO, SMALL, AND MID-SIZE
BUSINESSES, AND THE DEMOCRATIZATION OF PRODUCTION.
a. Written reprimand; and,

b. Fine shall be of a minimum of ten (10) and a
maximum of one hundred (100) Unified Basic
Salaries for workers.

For Serious Infringements:

a. Fine shall be of a minimum of fifty (50) and a
maximum of two hundred (200) Unified Basic
Salaries for workers;

b. Suspension of authorization granted to carry
out its activities, for a time period of up to three
(3) months;

c. Final cancelation of authorisation given as
Operator, within Special Economic Development
Zones (ZEDE).

d. Revoking authorisation for Special Economic
Development Zones (ZEDE).
In the case of environmental damage, the
responsible parties, apart from the established

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Book III appropriate measures for financial and technical Chapter III This registry shall help identify and categorize
support; MIPYMES as producers of goods or services,
ENTREPRENEURIAL DEVELOPMENT Mechanisms for productive development according to concepts, parameters, and criteria
OF MICRO, SMALL, AND MID- b. Formulate, prioritize and coordinate actions for defined in this Code. It shall also make a database
the sustainability of the MIPYMES, as well as Art. 55.- Public institutions are bound to apply with information from the sector and about
SIZE BUSINESSES, AND THE
establish the annual budget for carrying out all the principle of inclusion in their purchases. To MIPYMES that participate in public programs for
DEMOCRATIZATION OF PRODUCTION. of its prioritized programmes and plans; foster MIPYMES, the National Institute of Public production and support of their growth, or that
Acquisitions shall foster and monitor that all the benefit from the incentives of this Code, so that
TITLE I c. Authorize the creation of, and supervise the contracting entities comply with the following: the pertinent authority shall direct and define public
growth of new infrastructure specialized in this policies, as well as adequately assist and advice
Fostering the micro, small and mid-size subject, like: development centres MIPYMES, a. Establish criteria for inclusion of MIPYMES in the MIPYMES.
businesses technological research and development, procedures and in the proportions established
enterprise stimulators, transfer nodes or by National System for Public Contracting; Solely for the purpose of monitoring public policies
Chapter I laboratories, required to foster, facilitate and give that are of this sector, the Ministry managing the
impulse to productive development of these b. Grant MIPYMES all the support so that they shall Registry may ask for information related to the
Fostering the micro, small and mid-size businesses, in accord with the laws pertinent to have timely and adequate information about the categorization of the MIPYMES in the database, in
businesses (MIPYMES) each sector; processes in which they can take part; terms to be determined in the Regulations.

Art. 53.- Definition and classification of d. Coordinate with the public and private c. Strive towards simplification of the paperwork TITLE II
(MIPYMES).- Micro, small and mid-size businesses specialized sectors, creation of programmes required to take part as purveyors of the State;
are any private citizen or legal entity, that as a for training, information, technical support and, Democratization of the Productive Transformation
productive unit, does a production, commercial and commercial promotion, geared towards and the Access to the Means for production
and/or services activity and that abides with the promoting the participation of MIPYMES in d. Define within the Public Sector annual plan of
number of workers and gross value of annual sales, international commerce; contracts, the goods, services, and work that Art. 57.- Productive Democratization.- In
determined for each category, in conformity of the can be provided and made by MIPYMES. accordance with the Constitution, Production
ranges that may be established in the regulations e. Propitiate participation of universities and local Democratization shall be understood as the
of this Code. In case of inconformity of the education centres, national and international, policies, mechanisms, and instruments that
variables applied, gross value of annual sales shall in the development of entrepreneurial and The National Institute for Public Acquisitions generate the de-centralization of productive means
prevail over number of workers for the purpose of production programmes linked to the productive shall keep an up-to-date registry of purchases and resources, and aid in accessing finance,
determining the category of a business. Artisans sectors, with the purpose of strengthening made to the popular and supportive economy capital, and technology for carrying out their
that qualify the criteria of Micro, small and mid-size MIPYMES; of the MIPYMES, and shall make it known to the productive activities.
businesses, may receive the benefits of this code, public such benefits, as well as future plans for
upon previous compliance of the requirement and f. Promote the application of principles and criteria public purchases to be made by the State and The State shall protect family and community
conditions in the Code. needed for the Quality certification of MIPYMES, its Institutions. To benefit parts involved in the agriculture as the guarantors of Food Sovereignty,
determined by the authority competent in this popular, supportive and community economy, the as well as protect craftsmanship, the urban
Chapter II subject; same duties and technical parameters for inclusive informal sector, and the micro, small, and mid-size
acquisitions shall apply. businesses, establishing polices that shall regulate
The Bodies Regulating MIPYMES g. Give impulse to implementation of programmes its interchanges with the private sector.
for clean production and for social responsibility
Art. 54.- Institutionality and Competence.- The by MIPYMES; Chapter IV The State shall promote specific policies to
Productive Sector Council shall coordinate policies eradicate inequality and discrimination of women
for fostering and growth of the micro, small and h. Foster application of information tools and Of the Registry for MIPYMES and producers, in regards to access to the factors of
mid-size businesses, with the sector Ministries in organizational development, that support the Simplification of Procedure production.
the scope of their competences. For determining links between public and private institutions
cross policies of MIPYMES, the Productive Sector that participate in the entrepreneurial growth of Art. 56.- Registry for MIPYMES.- The Registry Art. 58.- Implementation of Processes
Council shall have the following rights and duties: MIPYMES; for MIPYMES is created as a database of the for the Democratization of Productive
Ministry that heads the Sector Productive Council, Transformation.- Productive Sector Councils
a. Approve the policies, plans, programmes and i. Coordinate with public and private institutions, which shall manage it and for which purpose all the shall make and control effective implementation
projects recommended by the executing organ, linked with entrepreneurial financing the actions Ministries of the sectors shall be under obligation to of the policy for the Democratization of Productive
as well as monitor and evaluate the management to facilitate access of MIPYMES to credit; provide timely information needed for the database Transformation, through the design and application
of the bodies in charge of execution, taking creation and its continual update. of specific programmes that allow access to the
into account the individual cultural, social and j. The rest established in the law; means of production, as are land and capital,
environmental peculiarities, and taking the amongst others.

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Art. 59.- Objectives of Democratization.- of production, for the discriminated sectors; purchase of shares with credits and preferential The resources for these programmes shall be
The policy for the Democratization of Productive financial programmes; and, assigned yearly from the State National Budget.
Transformation, shall have the following objectives: k. Promote specific measures to eradicate
inequality and discrimination from access to c. Give impulse to opening up of capital of private Chapter II
a. Foster and expedite for Ecuadorean nationals the means of production, towards women companies, in favour of the workers of said
access to proprietorship and transformation of producers; companies, through approval of fiscal and Financing and Capital
the productive means; financial incentives that are created in this Code.
l. Foster development and dissemination of Art. 62.- Access to Public Banking.- The
b. Expedite the access of citizens to shares of knowledge and technologies directed to The Regulations of this Code shall establish the Productive Sector Council shall determine and
State businesses, by designing and putting into production processes; parameters that the companies and workers that watch over access of all productive sectors to
effect the tools that allow this; participate in the processes of opening up of capital public bank financing; establish the guidelines and
m. Foster national production in all sectors, shall comply with, especially in regards to the incentives to support access to private financing, in
c. Aid the growth of MYPES and productive especially to guarantee Sovereign Nourishment mechanisms that limit any link between the actors particular for those actors of the economic social
groups and entities, through innovation for and Energy Sovereignty that generate and any action that simulates the massification supportive system, from micro, small, and mid-
developing new products, markets, and employment and added value; and of the business capital. Equally, special faculties sized businesses, and shall determine the ways to
productive processes; shall be granted to the competent authorities, so boost the deepening of the stock market, to foster
n. Develop financial public services for as to guarantee the transparent diffusion of these access for all involved in production, and try to
d. Foster compliance with the business ethics democratization of credit, to make access to processes, to society in general, and to guarantee reduce the costs of such financial intermediation.
that the Government promotes, by creating financing, capital and technology easy, for the the proper evaluation of the achieved objectives.
a publicly acknowledged Seal of Operations, carrying on of productive activities of groups The competent authority in matters of public
that shall give incentives and encouragement traditionally excluded from said financial Chapter I financing may establish special credit programmes
to those businesses that work with respect services. with the participation of the private financial System.
towards the environment; show observance of Of Land
labour and Social Security duties owed to its The initiatives that these mechanisms seek to foster Art. 63.- Registration.- Public and private
workers and employees; and to the community, shall be those that do productive transformation Art. 61.- Access to Land and its Integral financial entities must create and keep a registry
by timely payment of their tributary obligations and add value. The Regulations of this Code Fomentation.- The State, through its appropriate of the operations of the businesses qualified as
according to applicable law; shall establish the technical parameters and governmental bodies, shall foster and make easy MYPYMES and shall periodically report to the
requirements that shall be complied with by the the access to land to rural communities and families executing entities of the policies of the MYPYMES.
e. Support the growth of innovative processes persons and business involved in these processes. lacking thereof, granting them preferences in the
of Ecuadorean businesses by designing tools redistribution processes, through mechanisms that Art. 64.- Guarantees.- The regulating financial
that shall allow businesses to be more efficient Art. 60.- Incentives for Opening Business’ provide Property Titles, transfer of State-owned authority shall establish a special guarantees
and attractive, both in national and international Capital.- For compliance with the mentioned property, mediation for the sale/purchase of land system for public and private financing of
markets; objectives above, the Directive Body in Productive in the market, reversion, or other mechanisms MYPYMES and for initiatives for risk capital, public
Development Policy matters, shall give impulse established in the Constitution and the Law. as well as private.
f. Give incentives and attract investment that and control, in coordination with the Internal To guarantee that these actions contribute in
shall generate local and territorial growth, larger Revenue System (SRI), the governing Ministry of productive improvement and access to markets, Art. 65.- National Guarantees Fund.- The
chains of production with equality, strategic Labour policy, the Superintendant of Companies, the following shall be done: National Guarantees Fund shall be created to
insertion in international markets, quality the Superintendant of Banks and Insurance facilitate access of MYPYMES to finance their
employment, technological innovation and Companies, amongst other Government entities, operations. For financial purposes, the guarantees
democratization of capital; shall implement the following mechanisms: a. Boost alternative ways of commercialization so that this fund backs shall be considered as self-
that the supply of local and regional markets is liquidating and whose coverage with respect to the
g. Territorialize public policies; a. Diversification of shareholding of exclusive guaranteed, while improving productive rural guaranteed credit shall be one for one. The Fund
State-owned businesses or in which it owns family income; shall be part of the System of Credit Guarantees of
h. Promote decentralization of productive means part of the social capital, in favour of the workers b. Supporting Food Sovereignty of the country, Ecuador, under regulation of the Superintendant of
and resources; of said businesses. The purchase of share through fostering food production for national Banks and Insurance. The operations of this Fund
packages may be made through the National use, as well as productivity and manufacturing shall be determined by the Regulations.
i. Implement measures directed towards family System of Stock Markets or other mechanisms goods that favour proper nutrition to Ecuadorean
farmers, women, communities, peoples recognised in the law. This mechanism does not families, especially its children; and, Art. 66.- Norms for MYPYMES.- The regulating
and nationalities, to eradicate inequality and apply to public businesses. c. Promote productive practises that assure authority of the stock market shall develop a special
discrimination; sustainable land preservation and handling, norm for MYPYMES individuals and associative
b. The State may temporarily intervene, in the especially of its fertile layer, so as to prevent access to financing through the stock market.
j. Provide incentives for redistribution and capital structure of production transformation, its degradation, in particular that provoked by The institutional public investors shall determine
elimination of inequality of access to the means private or mixed, for financing workers in the contamination and erosion. a facilitating and special norm that allows the

28 29


purchase of securities generated by MYPYMES. TITLE III

Art. 67.- Other forms of financing.- The pertinent Of Equal territorial Development
body for Fostering and regulation of popular
micro-finances shall establish the mechanisms Art. 69.- Territorial Priorization.- The Productive
for boosting the financing of the micro and small Transformation shall seek to dynamize all national
businesses in all national territory, but mostly in the territories; however, it shall give priority investment
regions that have less financial coverage, and to in productive development in Economically
improve the access to and efficiency of specialized Depressed Zones, taking into account other
technologies of the private operators of the system. elements such as: high indexes of unsatisfied basic
needs, amongst others, that shall be determined
The national government shall implement a jointly with the National Planning Secretary’s Office,
programme that allows MYPYMES of these the Productive Sector Council and the Autonomous
types, necessary for innovation and productive Decentralised Governments. These entities shall
transformation, as well as a whole programme evaluate and monitor that the policy is complied
for entrepreneurship for pre-investment and with.
investment cycle.
Art. 70.- National Planning Secretary’s Office,
Art. 68.- Credit for the opening of capital the Productive Sector Council, and Autonomous
structure and investment.- Private businesses Decentralised Governments may define policies
that require financing to develop new investment to drive mechanisms for promoting endogenous
and that also may want to carry out a programme economic development in the territories, and for
of opening their capital structure under the terms integration into national and international markets.
of this regulation, may benefit from flexible credit

BOOK IV
programmes of the national government for the
massification of these processes, with preferential
interest rates and long-term credit.
FOREIGN TRADE, REGULATING ENTITIES AND INSTRUMENTS.

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BOOK IV 1. The Committee for Foreign Trade shall be h. Establish international commercial negotiations Art. 73.- Resolutions.- The norms of general and
presided by the Ministry that the Executive parameters in matters of origin; obligatory compliance that the governing entity
FOREIGN TRADE, REGULATING ENTITIES shall determine, and this shall also work as in commercial trade approves shall be adopted
AND INSTRUMENTS the Technical Secretary’s Office; and, i. Adopt the necessary measures for administrative through Resolutions that shall be published in the
efficiency and simplification in foreign trade mat- Official Registry. The form and effects of the other
2. Technical Secretary’s Office of the Commit- ters, different from customs processes; matters that the Committee approves shall be
TITLE I
tee for Foreign Trade shall have the needed regulated by the dispositions of this Code, and by
technical areas to design public policy and j. Adopt norms and necessary measures to coun- international agreements, duly ratified by Ecuador.
Intentionality in Foreign Trade Matters
foreign trade policy, as well as its evaluation teract disloyal international trade practises that
and monitoring. affect national production, export, or in general Carrying out the decisions adopted by the governing
Art. 71.- Institutionalise.-The body that shall
the Country’s commercial interests; body in commercial policy matters, as well as its
approve national public policy in foreign trade
Art. 72.- Attributions.- Duties and attributions of control, shall be the responsibility of the competent
matters, shall be a collegial entity of a public inter-
the governing body in trade matters shall be the k. Be aware of the investigative authority reports Ministries and public entities, in accordance
sector type, in charge of the regulation of all matters
following: and adopt commercial protections according to with the functions and duties established in the
and processes linked to this subject, which shall be
national and international norms in use, in the Regulations, as well as the resolutions issued by
called Committee for Foreign Trade (COMEX), and
a. Make and approve general and sector policies face of internationally disloyal practices or the that same entity. The Technical Secretary Office
that shall be made up of designated or delegated
and strategies in foreign trade matters, fostering increment of imports that may cause or threaten of COMEX, shall supervise the compliance of its
persons from the following institutions:
and promotion of exports, as well as designa- national production; dispositions.
tion of executive bodies;
a. The Ministry directing Foreign policy;
l. Approve import contingencies or restrictive mea- Art. 74.- Coordination.- The ministries and
b. Give prior opinion for beginning negotiations of sures for foreign trade operations, when com- public entities responsible for administrating
b. The Ministry directing agricultural policy;
international agreements and treaties in foreign mercial conditions, harm to local industry, or the authorisations or procedures previous to import or
trade matters and economic integration, as well economic circumstances of the country, or the export of merchandises, in matters of public health,
c. The Ministry directing industrial policy;
as the strategies and alignments for negotia- countries economic circumstances so require; environmental, animal and plant health technical
tions. Within the framework of commercial ne- and quality regulations, cultural heritage, illegal
d. The Ministry in charge of coordinating economic
gotiations, the State might give preferential tax m. Resolve jurisdictional conflicts that may be diffi- drug control and psychotropic substances, and
development;
or tariffs for the entry of products that are in its cult to solve between different public sectors in other measures related to commerce, shall execute
commercial interest, with special emphasis to foreign trade matters; those functions in accord with the directing body
e. The Ministry in charge of coordinating economic
environmentally responsible goods; in commercial policy matters. These bodies shall
policy;
n. Promote financial assistance programmes of not apply administrative or technical measures
c. Create, modify and abolish tariffs; public banking for national producers, with flexi- related to commerce, which had not previously
f. The Ministry in charge of national financing;
ble credits that facilitate the implementation of coordinated with the directing body on commercial
d. Review non tariff rates, different from customs adequate environmental practises for clean and policies.
g. National Planning Body;
ones, linked to foreign trade processes; competitive production, and for fostering the
export of environmentally responsible goods;
h. The Ministry in charge of coordinating strategic
e. Regulate, facilitate or restrict the export, import, Art. 75.- Investigating Authority.- Is the body
sectors;
circulation, and transit of non-national or natio- o. Promote the creation of environmental certifica- determined by the regulations of this Code that shall
nalized merchandise, in the cases provided by tion for agricultural and industrial products for manage the investigative procedures in matters of
i. IRS;
this Code and in international agreements, duly the effect of accessing international markets, defence in foreign trade.
ratified by the Ecuadorean State; in coordination with the national environmental
j. The National Customs Authority (SNA);
authority;
f. Issue norms over registries, Authorisations, pre-
k. The rest of institutions that the President of the
vious document control, licenses, and procedu- p. Approve the required norm that is required in fo-
Republic shall determine through Executive
res for import and export, different from those reign trade to foster the trade of environmental
Decree.
of customs, general and sector, including the responsibility standards;
requisites that shall be abided by, different from
The delegates should have at least the rank of
customs processes; q. Defer temporarily, the application of general tariff
Under Secretary.
duties or for specific sectors of the economy, as
g. Approve an publish the nomenclature for clas- convenient to national production or the State’s
The Committee shall function under established
sifying and describing merchandise for import economic needs;
norms for professional associations of the
and export;
Executive, as well as the following provisions:
r. Promote environmentally responsible exports
and imports; and the rest established in this
Code.
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TITLE II Chapter II c. To protect non-renewable natural resources, Art. 83.- Nomenclature.- For applying non-cus-
national cultural, artistic, historical, or tom or customs measures for export and import of
Of Tariff and Non-Tariffs measures for Foreign Trade Non- Custom Duties Measures archaeological heritage; and, merchandise as well as for foreign trade statistics, it
regulating Foreign Trade shall be used the nomenclature that the ruling body
Art. 78.- Non- Custom Duties Measures.- The d. In the rest of cases that the governing entity in foreign trade matters shall decide, in compliance
Chapter I Foreign Trade Committee shall establish Non- establishes in this matter, for being convenient to with the Agreement over the Harmonised System
Custom Duties regulatory Measures for import and commercial and economic policies of Ecuador, for designation and merchandise codification (Har-
Foreign Trade Tariff Measures export of merchandise like: according to what is established in duly ratified monised System) as well as any other recognised
international agreements. system duly ratified in international agreements.
Art. 76.- Ways of expressing tariffs.-Tariff rates a. When needed to guarantee a fundamental right
may be expressed in percentage terms of customs’ recognised by the Constitution of the Republic; Art. 80.- Rates.- The rates that shall be applied in The ruling body may create additional or supple-
valuing of merchandise (ad-valorem), in monetary order to arrange permits, registries, authorisations, mentary codes for application of specific trade
terms of unit measurements (specific), or as a b. To comply by international treaties or licences, analysis, inspections and other applicable measures, with respect to the products that cannot
combination of both (mix). Other ways that are in conventions of which Ecuador is part; procedures to import and export of merchandise, be totally or partially classified in the nomenclature
international commercial treatises, duly ratified by or in connection with them, different from ordinary in use.
Ecuador, may also be acknowledged. c. To protect the life, people’s health and national custom procedures and services, shall be fixed in
security; proportion to the cost of services rendered, at local Chapter III
Art. 77.- Type of Custom Duties.- Custom Du- or national level.
ties may be adopted under different technical mo- d. To guarantee preservation of the environment, Certification of the origin of merchandises
des, such as: biodiversity and animal and plant health; This way, only the above mentioned rates shall be
applied, as well as the requisites and formalities Art. 84.- Norms of Origin.- The norms governing
a. Fixed duties. When a unique tariff is established e. When measures are needed to be imposed as applicable to import and export of merchandise, the origin of merchandise shall be understood as
for a subentry of customs nomenclature and of an answer to restriction of Ecuadorean exports, from the inception by the ruling entity on foreign the technical parameters established with the
foreign trade; or, which were unilateral and unjustified by other trade, through the pertinent legal instrument publis- purpose of determining the customs territory or
countries, in compliance with the provided hed in the Official Registry. region of a product. The origin of merchandise may
b. Contingent Custom Duties, when a Custom norms and procedures in international trade The required formalities and requisites of these pro- be national, if only one country is considered o, or
Duties is establish for a certain quantity or value agreements, and the orders that the Regulating cedures shall be only those strictly needed to reach regional, if is more than one country.
of imported or exported merchandise, and a entity establishes in foreign trade matters; the objective’s purpose.
tariff to imports or exports that exceed such To benefit from tariff preferences, contingencies,
amount. f. When temporary measures are required to Art. 81.- Procedures.- The electronic procedures special custom regimes, and other specific
correct trade balance disequilibrium; for approval of requests, notifications, and commercial measures where it is required to
Other means shall also be recognised that are procedures related to foreign trade and custom establish commercial origin, merchandise shall be
contemplated in international trade treaties, duly g. To avoid illicit trafficking of drugs and facilitation, shall be recognized as valid. subject to compliance by an origin of merchandise
ratified by Ecuador. National Custom Duties shall psychotropic substances; and, norm.
respect all commitments that Ecuador acquires in The State shall promote the interconnecting
international trade agreements that are duly ratified h. To achieve compliance with rules and laws electronic system amongst all institutions of the Art. 85.- Certification of origin.- It shall
by Ecuador, without prejudice to the right to apply compatible with international commitments in private and public sector that have relation with correspond to the governing entity that designs this
safeguards or of commercial defence that may be subjects such as customs control, intellectual foreign trade, to expedite and make easy the import code to regulate and administrate the certification
applicable, that go over the Custom Duties. property rights, consumer rights defence, quality and export procedures related to merchandises, of origin of national merchandise. Administration of
control, or the commercialisation of products and which shall be executed by the National the certification may be done directly or through
destined to foreign trade, amongst others. Customs authority, and who shall be in charge of public or private entities enabled to the effect, and
its implementation and development. the competent authority may act by appointed
Art. 79.- Besides the provided cases, in the or by petition of the national or foreign interested
following instances regulatory and restriction of Art. 82.- Mechanisms.- Amongst the non- party, in the investigation of questions about the
non-custom duties measures may be applied: custom duty measures that this norm provides origin of a product exported from Ecuador.
for, the non-custom duty contingencies, import
a. To avoid shortage of food products or other licenses, sanitary and phytosanitary measures, To this effect, the competent authority shall also
products vital to the country, as well as to control technical regulations, and any other mechanism certify to the origin of merchandise subject to active
price adjustment of this type of products. that is recognised in international agreements duly perfectioning that takes place in a ZEDE; that abide
ratified by Ecuador. by the established norms for recognition of origin
b. To insure national producers with supply of raw Requisites and procedures for application of these of the processed product; or in conformity with
materials, as execution of a governmental plan measures shall be established in the rules of this applicable international agreements, for its export
for industrial development. code. as well as for its entry to national customs territory.

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Art. 86. - Verification of origin.- National TITLE III any other mechanism provided for in international those rights may be subject to an administrative or
Customs authority shall be in charge of control and agreements duly ratified by Ecuador. judicial controversy, national or international.
verification of compliance of the rules of origin of Commercial Defence Measures
imported merchandise when it pertain to foreign The requisites, procedures, mechanisms for In any case, resolutions that declare the beginning
origin goods, independently of the customs regime Chapter I application and execution of commercial defence and end of the review shall be notified to the known
from where they are imported. To this effect, it may measures, shall abide by what is determined in the interested parties. Interested parties shall have the
make use of all lawful attributes and international Art. 88.- Trade Defence.- The State shall give regulations of this Code; including the retrospective right of participating.
agreements for the control of imported goods, promote transparency and efficiency in international application of measures stipulated, after abiding
including verification in the factory of the production markets and foster equality of conditions and by the formal investigation process detailed in the Chapter II
processes of imported goods. opportunities, for which effect, in agreement with regulations; as well as determining to which type
this norm, as well as with the respective international of products, exceptions, and measures may be Art. 92.- Competencies.- In matters of
Art. 87. - Discrepancies about origin. - When instruments, shall adopt trade measures for: applied. commerce defence, in the face of commercial
doubts exist about the authenticity of certification measures applied by other countries, it shall be the
of compliance with applicable origin norms, or a. Prevention or remediation of damage or threat Art. 89.- Rights.- The antidumping and responsibility of the governing entity in commercial
when the certificate of origin is not presented, has of damage to national production, derived from compensatory rights shall remain in use, during the matters, to:
errors, or is incomplete for nationalisation of foreign disloyal practises of dumping and subsidies; time and amount needed to counteract the harm to
origin merchandise, the customs administration national production. a. Resolve or recommend the necessary
may accept a guarantee for the corresponding b. Restrict or regulate imports of similar or directly commercial policy measures to guarantee
amount of the tariff, rights, and taxes, according to competitive products that add significantly to However, those rights shall be eliminated in five respect of the Ecuadorean state rights,
applicable regulations. and are performed in conditions that cause or years, starting on the date of their inception, as according to international commerce norms;
threaten to cause grave damage to national established in the terms of these norms.
producers; b. Without prejudice to the attributions of the
In the case of safeguards, these shall be in force General Procurator of the Nation, this entity
c. Answer in kind to commercial, administrative, for four years and may be extended for four more shall decide if a foreign commerce controversy
monetary, or financial measures adopted years, as long as the need to keep them is justified, should be submitted to a panel, special group,
by a third country, that affect the rights and taking into consideration the compliance to the arbitration tribunal, international tribunal, or any
commercial interests of Ecuador, as long National Programme for Production Adjustment. entity of appeal, established in conformity with
as they may be considered incompatible or international agreements;
unjustified in light of international agreements, Economic taxes that will be imposed as result of
or annul or undermine advantages derived from these processes may be less than the antidumping c. Adopt appropriate measures compatible with
international trade agreements; margin or that amount of proven subsidy, as well international agreements and treaties, when
as that they are enough to discourage the imports another country starts internal or international
d. Limit imports or exports of products because resulting from disloyal international commercial procedures of financial, commercial, currency,
of social needs, stability of internal prices, or practise. or administrative processes, which results may
protection of national production and national affect production, export, or the commercial
consumers; When retroactive payment of these taxes is resolved, interests of Ecuador;
customs authority shall determine the procedures
e. Restrict import of products to protect the for collecting the overcharges established for these d. Adopt the necessary measures to ensure
balance of trade payments; and, cases, in the terms of these regulations. compliance of the decisions by entities of
commercial resolution, as established din this
f. Counteract any negative effects to national Art. 90.- Devolution.- The amounts charged Code and in pertinent international agreements;
production, as provided in international for provisional measures of antidumping,
agreements duly ratified by Ecuador. compensatory rights, or provisional safeguards, e. The rest that this norm establishes.
shall be given back if at the end of the investigation
Through international trade agreements, the it is not determined that the increase in imports has
application of these measures may be limited, or caused or threatened grave harm to any branch of
other specific mechanisms for commercial defence national production.
may be established, like origin of goods.
Art. 91.- Review.- The antidumping, definitive
Within the trade defence measures that the compensatory rights, or safeguards may be
governing entity of economic policy may adopt, periodically reviewed and modified, by party or
the following are included: antidumping measures, court appointment, at any time previous to the
compensation rights, safeguard measures, and Investigative Authorities report, independently that

36 37


TITLE IV

Export Promotion

Art. 93.- Promotion of exports.- The State
shall foster production destined to export, and
shall promote them through direct application
and general order mechanisms, with no detriment
to those stated in the legal norms of government
programmes:

a. Access to tariff preferences or other types of
preferences derived from mutually beneficial
commercial agreements, to the signing
countries, be them regional, bi-lateral, or
multilateral, for the goods and services that
comply with the applicable origin requisites or
that enjoy said benefits;
b. Right to conditional refund, total or partial,
of taxes paid for import of supplies and raw
materials incorporated into products that are
exported, in compliance of this Code;
c. Right to make use of special customs regimes,

BOOK V
with postponement of payment of tariff rights,
import taxes, and tributary charges, of goods
destined for export, as established in BOOK V
of this Code; SYSTEMIC COMPETITION AND CUSTOMS SIMPLIFICATION.
d. Financial support provided in the general or
sector programmes that are established in
agreement with the National Development Pro

Art. 94.- Insurance.- The financial body from
the public sector, which shall be determined by
the Executive, shall establish and manage the
mechanism of Credit Insurance for Exports, with
the objective of, within the parameters of financial,
covering the risk of non-payment of the value of
goods or services sold overseas.

Art. 95.- Non-financial promotion of exports.-
The Institute for Export Promotion and Foreign
Investment will be an entity of the Ministry that
directs foreign trade policies and shall be structured
and function under its regulations.

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BOOK V that entities, institutions and bodies have, or that over national aggregate component in acquisition Art. 105.- Customs Territory.- It is the national
they may legally and operatively have access to. of goods and services, in public purchases, and territory in which the dispositions of this code shall
SYSTEMIC COMPETITION AND investments in strategic sectors. be applied, and its primary and secondary zones.
CUSTOMS SIMPLIFICATION Public entities and institutions shall try to limit the
requirements for certified current copies of public TITLE II The custom borders coincide with national borders
documents that may be obtained through legal or provided in this Code.
TITLE I
operative means, by interconnecting with the public Customs Procedures Simplification Significance
sector database. to Customs Art. 106.- Custom Zones.- For customs
Fostering and Promotion of Strategic Sectors Key
administration, customs territory zones shall be
to Productive Infrastructure
Art. 100.- Exceptions.- As an exception duly Chapter I divided in the following zones, corresponding to
decreed by the President of the Republic, when each Customs district:
Art. 96.- Investment in Strategic Sectors.- The
it is necessary and adequate for the collective or Fundamental Norms
State may exceptionally delegate to the private
general public interest, when there is no technical a. Primary. - Made up by the area within sea and
sector and the popular, supportive economy,
or economic capacity or when demand for service Art. 103.- Scope of Use.- This title regulates airports, custom areas and habilitated premises
investment in strategic sectors in the cases
cannot be covered by public or mixed companies, the legal relationships between persons and legal within land borders, as well as other places
established in each sector’s laws and therefore in
the State or its institutions may delegate to the entities that have, directly or indirectly, activities that Customs management shall designate,
this Code.
private or popular and supportive economy related to international merchandise traffic. For where shall take place loading, unloading,
sectors, the management of strategic sectors and customs effects, merchandise shall be understood and movement of merchandise entering from
Without prejudice to what corresponding sector
the provision of public electricity, roads, sea or as personal property, of material nature. All that is outside or with foreign destination.
laws say, national and foreign investors that
airport infrastructure, train or others. not expressly provided for in this title, tax Code and
develop projects in strategic areas determined in
other legal norms shall apply. b. Secondary. - That shall comprise the rest of
the Constitution, and any other judicial resolution,
What is decreed in the Constitution shall be national territory, including territorial waters and
may receive additionally what is provided in this
guaranteed and forewarned that prices and rates Art. 104.- Fundamental Principles.- Aside from air space.
chapter.
for services shall be just and that State institutions that established in the Constitution, the following
establish their control and regulation. shall be Fundamental Principles of this norm: Chapter II
Art. 97.- Need for Habilitating Titles.- The
investment contract shall not be interpreted as
Delegation forms may be concession, association, a. Simplifying foreign commerce. - Custom Custom Tax Obligations
authorisation for development of activities in
strategic alliance, or other lawful contractual forms, processes shall be quick, simple, expeditious,
strategic sectors, in which other specific habilitating
taking into account the proceedings for public and electronic, trying to secure the logistic chain Art. 107.- Custom Tax Obligations.- The
titles defined by sector laws, are required, such as
contracting that the regulation determines, except so as to boost national competitiveness and customs tax obligations is the personal law link
contacts, permits, authorisations, concessions,
in the case when it pertains to state property of productivity; between the state and the people who operate
etc. The existing of an investment contract shall not
through countries that are part of the international international merchandise traffic, therefore they are
limit regulation and control from the State through
community, in which case delegation may be made b. Customs Control. - In all foreign trade under customs authority to present their respective
its appropriate entities.
directly. operations, precise controls shall be applied taxes, when the act is verified, and the compliance
through risk management, to ensure respect of with the rest of formal duties.
Art. 98.- Non-discriminatory Treatment in the
Art. 101.- Efficiency in Public Services.- The law and order and for tax interests.
Electrical Sector.- In the electrical area, new
State shall adopt specific measures to support Art. 108.- Taxes on Foreign Trade.- They are:
national private companies projects, shall have
systemic competitiveness, through reduction of c. Cooperation and exchange of information. -
the same treatment, mechanism, and guarantee
transaction costs, elimination of unnecessary Exchange of information and integration on a a. Tariff rights;
condition and/or payment for purchase of power, as
procedures, as well as promoting a public national and international level, between private b. The established taxes on ordinary and organic
the ones applied to international power transactions,
culture of quality service. The use of information and public entities, shall be aimed for. law, and those activities that have a relationship
in compliance with Andean Community decisions
and telematic services shall be encouraged for with the entry and exit of merchandise; and,
and norms given by the electrical sector directing
obtaining, validating, and exchanging information d. Good faith. - Good faith shall be assumed in all c. Customs services taxes.
entity, after favourable reports from the Ministry of
and other measures for electronic government; to customs proceedings;
Electricity, and The Ministry of Finance.
that effect, Central Government entities as well as National Customs Service of Ecuador, through
decentralised autonomous ones, shall establish e. Publicity. - All dispositions of the National resolution, shall create, eliminate, and fix the rates
Art. 99.- Simplification of Administrative
specific programmes to guarantee permanent in- Customs Service shall be public; for customs services and regulate their collection.
Processes.- In keeping with the objectives of
line services, agile and efficient. Tariff over charges and the rest of economic taxes
the National System of Public Data Registry,
f. Use of good international practice. - The best that shall apply for national commercial security or
State entities, institutions, in the scope of
Art. 102.- National Aggregate Value.- The custom practices shall be applied to reach those of a similar nature, shall not be considered as
their competence, shall simplify administrative
Ministry in charge of industrial policy with the international standards of service. taxes in the terms established by this Code, and
processes. Within this context, entities, institutions,
regulating entity for public acquisitions shall therefore shall not be regulated by Tributary Law.
and bodies, shall implement automated databases,
develop appropriate control mechanisms to watch
and shall not require certified copies or photocopies

40 41

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Art. 109.- Actions that Generate Customs Tax Art. 112.- Norms and Applicable Taxes.- The In case of not paying within the deadlines, there of payment shall enter into action after notification
Duties.- The entry and exit of foreign merchandise applicable norms for customs obligations are the shall be generation of interest calculated from due of tax rectifications, before of the deadline.
from customs territory under control of Customs one in use at time of acceptance of the customs date.
Authority. With no detriment to the above, there is declaration. The right to demand a refund of money for excess
no generation of customs taxes, even when under It will be conceded easy payment terms for all or wrongly collected money, prescribes in five years,
the control of customs, merchandise that crosses However, applicable taxes are the ones in use at the foreign trade taxes on the import of capital goods, from the day of payment verification; prescription
the national customs territory, in international date of presentation the customs declaration for the as per the Tax Code. Authorised self-liquidation of shall be suspended from the date of the claim
transit under applicable norms or those that import of merchandise and for exports shall be the payments, complimentary liquidation as a result Prescription of custom matters shall be expressly
enter customs territory as part of an international ones in use upon entering primary zone of appraisal and tax corrections, shall be enough asked by who might benefit from it and shall be
merchandise traffic operation, with overseas ground to execute collection through coactive executed by proper law or administrative authority.
destination, including transhipment regimes. There Art. 113.- Customs Tax Obligation Demands.- procedure.
is no generation of tax obligations, although there is
the obligation to submit to customs controls, with a. In the balance and substitutive import or On notes of credit given by the National Customs Art. 121.- Express Abandonment.- Is the written
regards to merchandise that arrives unexpectedly, export declaration, from the date payment is Service, as a consequence of credits in favour of renunciation of merchandise property done in
unless the person that has rights to make use of authorised; Customs, all taxes on foreign trade and the interest favour of the State, for which it can be done. Its
said merchandise expressly states the intention of that they generate in accordance to the Regulations acceptance by any public official of Customs
entering them to national customs territory. b. In the rates, from asking for service; of This Code and prescribed by Custom Authority, district, extinguishes custom tax obligation.
shall be included. It may be refunded the
Art. 110.- Tax base.- The tax base of tariffs is c. In the rest of cases from the next working day economical taxes of a commercial nature charged Express abandonment does not proceed after
the value of the merchandise. The merchandise of notification of liquidation of balance due, tax for imports or exports, because of commercial assessment of presumed abandonment or law
valuation in Customs shall be the same as its rectification, or corresponding administrative defence adopted by the government. When the offense.
transactional value plus transportation and action. National Customs Service, makes refunds for taxes
insurance costs, as determined by customs on exports, as established in literal b), Art. 108 Art. 122.- Customs.- Tax obligations prescribe
valuation dispositions. The cost of insurance shall Art. 114.- Exemption of Tax Obligations.- of this Code, it shall periodically notify IRS for the when there is total destruction or loss of
be part of customs value, but the insurance policy Customs tax duties disappear by: respective control. merchandise, prior to its arrival or when in
shall not be an obligatory document to support temporary storage in customs or in any other
customs declaration. a. Payment; Art. 117.- Collection.- Collection of money that for installations authorised by it, as long as said events
any reason belongs to National Customs Service are fortuitous or of force majeure, and accepted by
When tax base of tariffs cannot be determined, in b. Compensation; shall be done through entities of the national Customs.
conformity of imported merchandise value, it shall Financial System. For this, Customs Director may
be estimated by secondary valuation methods that c. Prescription; sign special agreements with the national Financial Without prejudice to the above said, robbery, theft,
regulate the value of merchandise in customs. System. and subtraction of merchandise do not extinguish
d. Total loss or destruction of merchandise; custom duties
For calculation of the tax base, the values and, Art. 118.- Coactive action.- The National
expressed in foreign currency shall be converted to Customs Service shall exercise a coactive action Art. 123.- Administrative Confiscation.-
legal currency used to the exchange rate in use at e. Legal or administrative seizure of to collect money owed it for any concept. Tax Code Confiscation of merchandise proceeds when the
the moment of customs declaration. merchandise. or Civil Procedures Code shall apply depending on authorised public official declares that:
the nature of the debt. To execute this action, it shall
Art. 111.- Subject to Custom Tributary Art. 115.- Payment methods.- The methods to be enough to pay the liquidation, complimentary a. Merchandised left behind, even in primary
Obligations.- The following are active and passive pay customs tax obligations shall be established in liquidation, tax corrections, or administrative action zones, when the cosignatory, consignee, or
subjects of customs tax obligations: the regulations of the Code. that issues fines. owner are not known;

a. Active obligation: The State through national Art. 116.- Deadlines for payments.- Foreign Art. 119.- Compensation.- Tax debts of b. Lost at sea merchandise;
Customs Service trade tax duties shall be paid in the following time customers shall be paid to the National Customs
b. Passive obligation: is who in condition of periods: Service, with tax credits, recognised by any central c. Merchandises that have been the subject of
contributor or responsible party, shall satisfy the tax administration, as long as they have not expired. robbery, stealing, subtraction in Customs or in
respective tax. a. Two work days after authorisation for payment, its transport, when the cosignatory, consignee,
of the substituting declaration and liquidation; Art. 120.- Prescription.- Administration actions or owner are not known; and,
A person or legal entity that exports or imports, b. On rates, the following working day when tax is to collect, shall prescribe after five years from their
must register at the national Customs Service, as due; due date. In case of liquidation, complimentary d. Merchandise that has been ordered re-embarked
to the dispositions issued by the Director General. c. In the rest of the cases, within twenty working liquidation done by appraisal, the prescription shall and it did not take place within the deadline;
In imports, the contributor is the owner or consignee days after notification of or determination of be interrupted with a coactive process notification shall not cause a Customs taxes obligation
of the merchandise, and in exports is the consigner. Customs tax, or its administrative action. of payment. In the subsequent control, interruption

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Art. 124.- Claims and Administrative g. Samples without commercial value, to the authorization by district director in the following Art. 132.- Cargo Units.-Those cargo units that
Resources.- Anyone whose rights as a person extent authorized by the National Customs cases: arrive to the country while transporting merchandise
may be directly threatened, may present an service. as part of international trade practices, shall be
administrative claim to the Director General or a. Free of taxes after 5 years, from the day in which under Customs control, but shall not be treated as
District Directors of the National Customs Service h. Those provided for in Immunity, Diplomatic the benefit was given; merchandise, therefore not generating any taxes.
of Ecuador, within twenty days of having been Privileges and Franchises, which include
notified of said action. diplomatic, consular delegations and b. Before those five years, previous to monthly Cargo transport vehicles that will be used for other
representations, international organizations payment, taking into account the time remaining ends, shall make a Customs declaration and if they
Claims shall be supported and resolved by Tributary and other foreign governmental organizations from the five years; intend to stay indefinitely in the country, shall be
Code, within sixty days of the Plaintiff’s presentation recognized by Ecuador. nationalised; all documentation for such purposes
of claim. c. Tax-free when the transfer of control is done shall be the ones required by Customs.
i. The medical equipment, technical help, special in favour of entities and persons that have the
The District Director of the National Customs tools, raw materials for the elaboration of same benefits. Art. 133.- Arrival Date.- The Customs arrival
Service of Ecuador is the competent authority for prosthetics and orthopedics for the use by date is that on which merchandise gets to the first
this procedure and plaintiffs may ask for review of handicapped people or the law entity in charge In the case of transfer of control of exempted Customs post.
resolutions in accordance to norms of Tax Code. of these persons’ protection. The vehicles for merchandise the same conditions shall apply.
these ends, within the provisions of the Law for Art. 134.- Temporary Storage.- Unloaded
the Disabled. merchandise shall be passed from the transporter
Chapter III Chapter IV to Customs for temporary storage as prescribed by
j. Postal parcels within the limits established by Customs.
Exemptions the code and laws and agreements signed by Customs Operations
Ecuador. Customs shall have the jurisdiction to authorise the
Art. 125.- Exemptions.- The following Art. 128.- Customs Operations.- These and the operation of temporary storage, as per the needs
merchandise shall be exempt of all taxes, except k. Human fluids, tissues, and organs for medical rest of activities derived thereof shall be established of foreign trade.
those for customs services: procedures according to the law; and regulated by this Code and Customs norms.
Art. 135.- Responsibilities for Merchandise
a. Personal effects that travel with the person; l. Objects and pieces belonging to the Cultural Art. 129.- Customs Border Crossing.- Entering Storage.- While in storage, the following
Heritage of the State, imported or repatriated by or exiting of people, merchandise, transportation responsibilities shall exist, without prejudice to civil
b. Household goods and work equipment; the State within the regulations; shall be done only through those places, times, and or penal responsibilities that might ensue:
dates established by Customs.
c. Merchandise sent as humanitarian aid in favour m. Merchandise waste under special regimes that a. Responsibilities for entities in charge of
of the State or of private organizations for aid or shall be destroyed by Customs. Any transportation means shall be under control of temporary storage or custom storage facilities
charity; Customs shall be.
The exemptions provided here shall be given by a
d. The imports of the State, public institutions, public official, excepting literals a), b), c), d), f), g), Art. 130.- Receiving Transportation Vehicles.- 1. Indemnization to the owner or consignee
companies and entities, including decentralised j), k) and l), which shall not require administrative TAll transportation vehicles shall enter to the primary for loss or damage to their merchandise;
autonomous governments, associations resolutions and shall be regulated by this Code. customs zone and shall present electronic or 2. Payment to the State of dues that may
which own at least 50% of its capital, a public hardcopy required documentation. have generated merchandise subjected
institution, Junta de Beneficencia of Guayaquil Art. 126.- Return or Re-import of Merchandise.- to robbery, stealing and subtraction from
and the Society for the Fight Against Cancer Overseas total or partial return and re-import Art. 131.- Loading and Unloading.- Merchandise entry port to storage facility.
(SOLCA). Mixed economy companies are of merchandise imported as consumer goods, coming from abroad, through any way, shall be
exempt to the percent that corresponds to the are free of taxes, with the exception of tariffs for described in the Cargo Statement. b. It is the responsibility of the merchandise’s owner,
public portion. services, as provided by this Code. cosignatory, or consignee, indemnification for
Whether because of weight, volume, or type of damages caused by said merchandise when
e. Donations coming from abroad that go to public Shall there be a return of money in favour of the merchandise it becomes necessary to unload, it they did not expressly disclose the nature
or private sector not for profit entities, destined exporter for merchandise re-imported into the may be authorised by the customs official to do so or danger of it, to the owner or authorised
to health, food, technical support, charity, country, as in the case of Drawback, first total in other places as the ones normally assigned for companies of storage and temporary storage
medical assistance, scientific and cultural payment must be assessed, and a coactive this. facilities.
investigation, as long as they have cooperation measure can be used for collection.
agreements with the public sector. Export merchandise shall be subject to Customs Art. 136.- Rights of the Owner, Cosignatory,
Art. 127.- Transfer of Control.- Merchandise until such time when the air, naval or land authority or Consignee of Merchandise.- Before customs
f. Coffins or vials that have body remains or imported with total or partial tax exemptions, may gives permission of exit of the transportation declaration the afore mentioned entities may
corpses; be subject to Transfer of Control, previous to the vehicle. require from the Customs authority, verification of
merchandise to establish its nature and quantity.
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Art. 137.- Transfer.- Refers to the customs Art. 142.- Tacit Abandonment.- Shall operate To this effect Customs may require from the public Customs shall also have the right, through its
operation by which merchandise is moved from when any of the following takes place. - sector information on the people who operate in operative units, to investigate any accusations
one customs point to another customs point. international merchandise trade. There shall be presented, as well as to make the controls it deems
a. Non-presentation or transmission of the neither secrecy nor discretion that shall apply. necessary within Customs territory, to insure
Chapter V Customs Declaration within the set time period; compliance with this Code, adopting preventive
b. No tax payment of foreign trade, within twenty Whenever asked by either Customs or the IRS, and control actions.
Customs Declaration days of due date, except when facilitation of custom control may be performed post dispatch.
payments was granted; In case recurrent control errors are determined The operative unit of Customs in charge of
Art. 138.- Customs Declaration.- Customs c. When the period of stay in Customs is over. in a customs declaration already accepted, any subsequent control may apprehend merchandise
declaration shall be presented according to differences shall go to Customs and will be paid and objects that may be elements for conviction
Customs Director General. In case of incurring in any of the above-mentioned in a supplementary declaration. Complementary or evidence of commission of a customs infraction,
scenarios, the person or his customs agent declarations shall be paid before tax payments; and shall immediately make them available to the
Customs may declare the merchandise release shall have twenty-five days to remedy said non- otherwise the procedure shall be subject to corresponding Customs official.
in those cases provided for by the regulations of compliances, after which the Abandonment state subsequent control. The same conditions shall
this code, and when abiding by all dispositions shall be lifted, after paying a fine apply, as long as there is no presumption of Risk profiles. - A predetermined concurrence of
issued by Customs Director General. In these wrongdoing, excepting those cases established in risk indicators and based on information obtained,
cases, Customs declarations may be presented Art. 143.- Definitive Abandonment.- this Code. analysed, and put in a hierarchical manner.
afterwards. The Customs official may declare definitive
abandonment when they may fall under: In every case of amendments to a customs
Exceptions for Customs declarations are imports declaration, Customs shall keep records of initially Chapter VII
and exports made exclusively by the Armed Forces a. If within the twenty five working days stated presented or transmitted information, of all changes
and Police for qualifying military materials. above, the tacit abandonment status is not made as well as the name of the customs official Customs Regimes
remedied; handling this matter.
Customs may change, eliminate, or regulate the b. Non-appearance of the merchandise’s owner or Section I
simplified customs declarations and its application its delegate on the second date for appearance; Art. 145.- Subsequent Control.- Within five years
when so needed by trade. c. In the case of travelling personal effects or from the date of payment of Custom taxes, Customs Imports Regimes
taxable goods detained at International Arrivals may submit to verification customs declarations,
Art. 139.- Release and its Types.- Release is site, which have not been retrieved within five as well as all information that any person or Art. 147.- Imports for Consuming.- The customs
the administrative procedure to which all exiting days of its entry to the country. legal entity may have in relation with imported regime through which imported merchandise from
and entering merchandise shall be subject; this merchandise. Risk management systems shall be abroad or coming from ZEDE, can freely circulate
procedure starts with presentation of the Unified On the same Definitive Abandonment declaration, used, for determining Subsequent Control customs in Customs territory, with the purpose of definitively
Customs Declaration (DAU) and ends with the initiation process for the public action, declarations. If determined that the declaration had staying in it, after payment of import taxes, fees
dispatch. Its types and procedures shall be the adjudication, or destruction of the merchandise errors that have a monetary difference in favour of and fines, when there is grounds for such, and after
ones in this Code. shall be asked in accordance to this Code. Customs, a procedure shall start for the respective complying with customs formalities and duties.
The Customs’ Risk profile System shall determine corrections, without prejudice to any other legal
the ways of release applicable to each declaration, Chapter VI actions that might ensue, the payment of taxes, Art. 148.- Temporary admission for re-export
based on international norms that the Customs and this shall be sufficient for executing a coactive in same condition.- Customs may allow entry of
Director shall decide upon. In the case of courier Customs Control action.The person may present a substitutive certain merchandise to be used to a specific end,
transportation, it shall be normed by Customs declaration, within five years from the acceptance with total or partial suspension of payment of duties,
regulations. Art. 144.- Customs Control.- This shall apply to of the declaration, so as to correct errors made with the exception of normal depreciation because
entry, stay, transfer, circulation, storage, and exit of in good faith in a customs declaration, when said of use, to be re-exported, without having been
Art. 140.- Appraisal.- Done by Customs in regards merchandise, cargo vehicles, and transportation declaration implies a larger amount of money for subjected to any transformation, as determined by
to merchandise and done through electronic, means in and out of the National territory, including Customs, and as long as it has not issued a tax the regulation.
physical, or documentary verification of origin, merchandise entering or exiting ZEDE zones, for rectification for the same motive or if subsequent
nature, quantity, value, weight, measurements and any reason. control had not formally begun. A substitutive
tariffs classification. declaration shall be validated and accepted the Art. 149.- Temporary admission for active
Customs control shall be exercised over persons same manner as a Customs declaration. improvement.- The regime that allows
Art. 141.- Tariffs Classification Consultations.- who intervene in foreign trade operations and those merchandise to enter customs territory with
Any person may consult the Customs Director for who come in and out of customs territory. If considered necessary, Customs shall order audits suspension of duties, taxes, and applicable
a Tariffs classification, when abiding by this Code Customs control should be carried according to for special regimes, within five years from the date charges, to be re- exported after an improvement
and Tax law. Its determination shall be binding for international norms and in the following stages: pre, of the customs declaration, to which effect all type procedure, under the form of compensatory
the Administration, with respect to the person who current, and post control. of verifications may be made, whether they may be products.
asks, and shall be published in the Official Registry. documentary, accounting, or physical.

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Industrial facilities may, under a general guarantee, temporary exit of merchandise of free circulation zones may be authorised for supply, repair, and Section IV
be allowed to operate, abiding with this Code’s with a due date, within which they shall be maintenance of vessels, airplanes and cargo
regulations. re-imported without having undergone any vehicles, destined to public passenger and cargo Regimes of Exemption
transformation, with the exception of normal wear transportation, and which may include parts and
Compensatory products obtained under this because of their normal use. replacement pieces for their repair, conditioning, or Art. 164.- Postal Traffic.- Import or export postal
regime may be allowed to change regime to adaptation. packages, whose value does not exceed that
consumer imports after paying duties on the Art. 156.- Temporary Admission for Passive For this condition to apply, Customs Director may established in the regulations, may be dispatched
imputed component of said product. Improvement.- The regime that allows apply simple formalities. through simplified formalities, respecting
merchandise of free circulation in Customs international agreements in accordance to what
Art. 150.- Replacement of Merchandise with territory to be temporarily exported outside of Art. 160.- International Fairs. .- Special customs customs establishes. The packages that exceed
Tariffs.- Customs regimes that allow import, free of said territory or to a ZEDE in of said territory, for regime, by which it may authorised the entry of the established limits, shall abide by customs
duties and charges, with the exception of applicable its transformation, manufacture, or repair, and then merchandise with suspension of payment of taxes, general rules.
rates, identical or similar merchandise because of re-imported as compensatory products with the for a limited time, destined for exhibiting in already
their kind, quality, and technical characteristics, exemption of applicable and pertinent taxes. authorised venues, as well as consumer goods for Art. 165.- Courier.- Correspondence, documents,
which having been in free circulation, and have been purposes of tasting, promotion, and décor, tax free and merchandise that abide with the norms
used to obtain previously exported merchandise of Section III of foreign trade duties, previous to compliance of decreed by Customs director, or Director General
definitive condition. requisites set in the norms. of Customs, and that do not exceed the provided
Other customs regimes limits, transported by courier, may be dispatched
Art. 151.- Transformation under Customs Art. 161.- Customs Transit.- Customs regime, by simplified formalities, in accordance to the
Control. .-The regime that allows merchandise Art. 157.- Conditioned Returns.- Regime under which merchandise destined abroad, may be norms of Customs. The packages that exceed the
to enter customs territory with suspension of that allows for the return automatically, partially transported under customs control from a district established limits, shall abide by customs general
duties, taxes, and applicable charges, having been or totally, foreign trade taxes paid for imports of office. rules.
subjected to transformation that modifies its type or merchandise that will be exported within the time
state, for later import and consumption. period and percentages set by this Code, in the Art. 162.- Reshipping.- Customs regime by Art. 166.- Borders Traffic.- In accordance with
following cases: which declared merchandise is in temporary international agreements and treaties, interchange
Art. 152.- Customs Depository.- Customs storage, awaiting a regime assignation or customs of merchandise destined for domestic use amongst
regime that allow imported material to be stored for a. Those used in the country for transformation destination, shall be reshipped from customs border towns, shall be allowed free of formalities
a certain period of time under customs control in an processes; territory. and of payment of foreign trade taxes, within limits
appropriate and recognized site for this purpose, set by Customs.
payment of import taxes, duties and charges. b. Those incorporated in merchandise; and, Even when merchandise had been declared under a
regime, reshipment proceeds when under customs Art. 167.- Private Vehicle used by Tourists.-
Art. 153.- Re-import in same condition.- c. Containers or conversions. control a change in tariff classification demands Regime that may allow the entrance of a tourist’s
Regime that allow importation of consumer goods, previous control or other documentation that was vehicle for private use, free of taxes within the time
with exoneration of payment of import taxes, The conditioned return process shall be completely not required by the importer, when this obstructs and conditions provided by this Code.
duties, and charges as long as they have not been managed by Customs. This way, Customs may legal merchandise import.
subjected to transformation, manufacture or repair, return all foreign trade taxes that correspond, and Reshipment shall be not authorised when a Art. 168.- Other regimes for exceptions.-
and under condition that all due amounts caused later do cross accounting of said amounts with the founded presumption of transgression of law has Passenger baggage, household items, and
by reimbursement or return, or a conditional holders of returned taxes, who shall be part of the been determined. Reshipment shall be compulsory supplies for sea or air vessels shall abide by the
exoneration of duties and taxes, or any other integrated system of electronic One-Step Process for merchandise prohibited for import, in case of regulations of this code and the norm to this effect
subsidy or amount given at the moment of export, for foreign commerce. perishables, apparel, and educational material that decreed by Customs.
have been paid. shall be donated to the Ministry of Social Policy.
Customs, through its electronic system shall do This regime shall be applied through simplified Section V
Section II the corresponding return, without prejudice of an proceedings, according to this Code.
administrative claim that the contributor may install General Laws
Export Regimes against said action, if he feels affected by it. Art. 163.- Transhipment.- Customs regime under
which transfer of merchandise is taken out of the Art. 169.- Change of regime.- Merchandise
Art. 154.- Definitive Export.- Regime that may Art. 158.- Duty-Free.- Duty-free is the regime that vehicle used upon arrival to customs territory and declared under a regime that suspends or frees
allow definite exit of merchandise of free circulation, allows storage and sale of merchandise, national loaded in the transport used for exit from customs from taxes foreign trade, may be declared to
outside common Customs territory or from a or foreign, to passengers entering or exiting the territory, under customs control. This regime another regime within the provided time. Upon
ZEDE located in Ecuadorean Customs territory, in country in international sea or airports, without shall be applied through simplified proceedings, completion of legal and regulatory requisites, the
accordance to this Code. export duties. according to this Code. change may be authorised by a competent public
Art. 155.- Temporary Export for Re-Import Art. 159.- Free Zones.- As per applicable official. Change of regime is prohibited for declared
in same condition.- Regime that allows the international norms, merchandise special free consumer goods.

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TITLE III retained merchandise be taken out of the containers a. Import or export of merchandise with false
Art. 170.- Tax Payment. .- In changing regimes they are in to give them back to the transporter or or adulterated documents so as to change
from consumer goods to imports, payment of Sanctions for Customs Transgressions its rightful owner. the value, quality, quantity, weight, type, age,
foreign trade taxes shall be made by customs origin or other characteristics as labels, codes,
valuation of the goods, applying tariffs and currency Chapter I The Director general shall regulate the procedure to series, models; in this case, the exercise of a
exchange rates on the date of acceptance of regulate the enforcement of these measures. penal action shall not depend on prejudicial
declaration to consumer goods regime. General norms matters whose decision is in the competence of
statutory civil law;
Art. 171.- Payment of rates for services.- No Art. 175.- Custom Transgressions.-A crime, Chapter II
special regime shall free, compensate, or suspend contravention, or regulatory fault provided for in this b. Simulates a foreign transaction with the purpose
payment of rates for services, does not allow its code. Customs Felonies of getting an economic incentive or benefit, total
return. For determination of a crime it shall be required the or partial, or of any other nature;
existence of premeditation. For contraventions and Art. 177.- Contraband.- The person who, to evade
Art. 172.- Transference to third parties. .- regulatory faults, they shall be punished by simple customs controls and security of merchandise that c. Does not declare the correct amount of
Merchandise of temporary admission, for active transgression of the norm. has a value of over ten basic unified salaries, and merchandise;
improvement, shall be the object of transfer of performs the following actions, shall be sanctioned
Domain to third parties, previous to customs In case that a merchandise non - suitable for with prison from two to five years, fines of up to three d. Hides within declared merchandise other goods
authorization, as per this Code and dispositions human use is imported or exported, the District times of customs valuation of the merchandise, and subject to declaration;
dictated by customs. Under this same procedure, Director shall order its immediate destruction, and seizure of the goods:
the transfer of this type of merchandise to third communicate the act to the Customs Director e. Unlawfully obtains liberation or reduction of
parties for export purpose may be regulated. General, at the expense of the owner, consigner, or a. Enters or takes clandestinely merchandise from foreign trade taxes on merchandises that under
of the one who declares it. customs territory; the law do not abide with the requisites to enjoy
Chapter VIII b. Moving of foreign merchandise in a secondary such privileges;
Art. 176.- Preventive Measures.- When a zone without documentation that sustains
Customs Guarantees customs offense is presumed, Customs, in order legal possession of it, and unable to prove its f. Improperly sells, transfers, or uses merchandise
to assure abidance to customs formalities and licit origin within seventy hours following its imported under special regimes or with total or
Art. 173.- Right of Pledge.- Customs shall have obligations, shall dispose the respective preventive detection, unless proven otherwise; partial exoneration, without due authorisation;
the special and preferential right of pledge over and transitory measures to provisionally stop and c. Loading or unloading of non-authorised
merchandise under customs authority to guarantee retain merchandise. In this matter Customs shall merchandise from the transportation vehicle g. Violates or removes seals, padlocks or
payment of customs tax obligations. This right have the same competence as national police without authorised customs supervision; other security devices put in transportation
shall prevail over any other legally or conventionally with respect to the object and instruments of the d. Internment of merchandise from a ZEDE, or units, places, or spaces enabled as
established. offense, in regards to the chain of custody. subject of a special regime, without abidance of temporary deposits, as long as total or partial
requisites established in this Code; disappearance of merchandise is determined.
Art. 174.- Types of guarantees.- Customs Immobilization is the act through which the official e. Unloading, discharging, throwing to land,
guarantees are general and specific, and may be in charge of the district decrees that merchandise throwing overboard or to another transportation
given, approved or executed in the way and time remain in the primary zones or another established vehicle, of foreign merchandise before customs Art. 179.- Attempt.- The mere attempt to commit
established by this Code. place under custody and responsibility of the legal controls, excepting inevitable or forced arrival; customs felony, shall be suppressed with half of the
representative of the temporary storage or by f. Hiding of foreign merchandise in vessels, provided for punishment, as long as it is within its
General guarantees are those that secure any whom Customs authority assigns. airplanes, transportation vehicles, or cargo phase of execution.
activity of a person that acts in foreign trade of units, without having subjected them to
merchandise or in the carrying out of customs Provisional retention is the obligatory seizure customs controls. Art. 180.- Administrative Sanction and
operations.Special guarantees are those that of the merchandise in secondary zones and its Re-incidence.- When the value of merchandise
secure a customs operation of private foreign trade. move to customs storage or another designated does not exceed the amounts provided for
place to this effect by customs authority, while the Art. 178.- Customs Fraud.- The person who the configuration of felony and fiscal fraud, the
Customs guarantees shall be irrevocable, of total or legal situation of the merchandise is determined. evades Customs tax collection on merchandise infraction may not constitute a felony and shall be
partial execution, unconditional, and of immediate Retention may not last more than three working whose value is above one hundred and fifty times punished administratively as a contravention of law,
payment and constitute reason enough for its days, after which the respective procedure shall be the amount of a basic unified salary, and as long as with the maximum fine provided in this code in the
immediate execution with sole presentation of continued. said merchandise has to comply with payment of cases where the commission of felony has been
collection, as disposed by law. foreign taxes, shall be sanctioned with two to five determined.
At any moment, and as long as it does not imply years of prison and fines of up to 10 times the taxes However, who has been administratively sanctioned
risk to the merchandise, nor founded presumption evaded, through the commission of these acts: more than once within two years, and the addition
of the transporter being involved in the investigated of the values on said occasions exceeds half of the
offense, the customs official may require that the amount provided for the configuration of felony and

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fiscal fraud established in articles 177 and 178 of the maximum fine corresponding to customs fraud same that should be exercised by the competent Art. 188.- Support and collaboration of the
this Code, shall be investigated and processed for and with the rest of the sanctions provided for in official from the corresponding jurisdiction, being Public law-enforcement entities.- The Armed
the corresponding felony. the corresponding felony, when any of the typified part of the penal process, even while in the Forces and National Police shall permanently be
felonies of this Code has been verified, and occurs intermediate or trial phase. available to the Customs Administration and its
Art. 181.- Responsibilities of Administrators, in one or more of the following circumstances: authorities, whenever so required, for control of
Directors and Representatives.-The person, Art. 186.- Real Precautionary Measures.- activities and prevention of the typified felonies in
who acts as administrator, director and a. When a public official or servant, who while Upon initiation of fiscal instruction, the judge of this Code, personnel that shall serve Customs in an
representative of legal entities that commit fiscal exercising or on the occasion of his functions, Penal Guarantees shall obtain Real Precautionary integrated way, according to this Code.
fraud, is personably liable as author, even if tax abuses his position; Measures over the goods belonging to the accused
fraud may result in benefit of the legal entity that he and of the legal entity that should presumably Art. 189.- Duty of no interference in Ecuadorean
intervenes for. b. When a bonded customs agent or an Authorised benefit from customs felonies. National Customs Service exclusive
Economic Agent is participant in the felony, competencies.- The entities of the judicial system
Persons who exercise control over the legal entities who while exercising or on the occasion of his Art. 187.- Prohibition of Return of Goods shall not intervene in exclusive competencies given
or employees or workers, if who deceitfully commit functions, abuses his position; Subject of an Investigation.- In any legal to the Ecuadorean National Customs Service, for
fiscal fraud for benefit of the legal entity, even procedural or penal process, the return of the release of goods that are in customs, and that
though they may have not acted under any order, c. When the uncovering or hindering or obstructing merchandise object of the felony, including are object of a penal investigation.
shall be responsible as perpetrators the seizure, provisional retention, immobilization, transportation vehicles used for committing it,
or confiscation of the merchandise material cannot be ordered, but only in virtue of a procedural Chapter III
When the cession of fiscal fraud has direct relation object of the felony, through the use of force, action that puts an end to the investigation or to
with the functioning and control of the legal entity, intimidation or power; the penal process, with the only exception provided Contraventions
the competent Tribunal of Penal Guarantees, shall for in the article about accessory measures of the
dispose at the time of sentencing, the dissolution of d. When it is made to appear as addressees or present chapter. Art. 190.- Contraventions.- Customs
all rights of the legal entity, for which it shall send to suppliers, non-existing civilians or legal entities, contraventions are the following:
the Superintendant of Companies certified copies or false address in custom regime documents In cases of Customs crimes, from the onset of
of the process with final judgement, for compliance and procedures; prosecution instruction, any public entity, including a. Allowing entrance of people to primary customs
of what is decreed. customs, may ask to the judge or tribunal which zones, without abiding by the regulations
e. When minors or any other non-attributable know the case, that aforementioned goods be approved by the Director General;
Art. 182.- Customs Reception.- The acquisition person is used; adjudicated to them, when they so require for
of free or paid foreign merchandise, as pledge, for the compliance of the institutional needs. To this b. Untimely, total, or partial transmission of the
storing, hiding, sale, or any other benefit, without f. When the caused taxes are more than three effect the value of the merchandise shall be the one cargo manifest by the transporter and actual
certifying its legal import or acquisition in the hundred times that of a unified basic salary; or, declared and with regards to the goods to which operator of the vehicle;
country, within the following seventy two hours, this rule does not apply, it shall be determined by
from the time of request of by the competent g. When the merchandise subject of this felony Customs. c. Untimely delivery of merchandise that is
customs authority, shall be reprimanded with a fine is counterfeit or is given a different place compelled for unload;
twice the customs value of said merchandise. of manufacture, so as to benefit from tariff Prior to signing the adjudicatory act, the requesting
preferences or on matters pertaining to origin of entity, or if in the case, the Ministry of Finance, d. Disclosing information classified as confidential
Art. 183.- Additional Measures.- In case of goods. shall certify that the value of the goods appear in by the respective authorities, by public officials
commission of customs felonies, without prejudice the corresponding budget of the beneficiary entity, of Customs, without prejudice to the rest of
to tax collection, duties, and the imposition of In the case of literal a), the sanction shall also be having to maintain the respective budget line administrative sanctions that may take place;
established punishments, the judge shall order the permanent disqualification for being in public office; account, for the duration of the penal process.
seizure of merchandise subject of the felony and of and in the case of literal b) it will as well be punished In the cases where the writ of execution establishes e. Not providing passenger roster, on the side of
the objects used for its commission, including the with final cancellation of license or authorisation non-existence of customs felony, the judicial entity the transporter, to customs before arrival or
transportation units, as long as they belong to the for working as a bonded customs agent or to may decree the return of the values belonging to the prior to departure of vessel;
author and accomplice of the felony. In case the qualify again as an Authorised Economic Operator, owners of said goods; otherwise the judicial entity f. Not delivering to customs the cargo manifest,
transportation vehicles do not belong to the author personally, through a third party individual or legal shall obligatorily notify the respective public entity, unless it has been authorized by customs, in
or accomplice, prior to its return, a fine equivalent entity. so that the corresponding budget line account be which case merchandise shall be surrendered
to twenty per cent of the customs value of the closed. upon arrival, with pending sanctions for the
merchandise shall be imposed to the owner of said Art. 185.- Procedures.- The penal actions to transporter if he does not comply with delivery;
vehicle. prosecute custom felonies is public and shall Additionally, the process participants may require
be exercised complying with the Code for Penal from the judge that knows the cause, the auction sale g. Obstructing or preventing customs actions
Art. 184.- Aggravated Felony.- Shall be Procedures. With respect to customs felony, of the consumer goods and fiduciary documents, controls, be it through actions with the purpose
penalized with the maximum sentence of loss of Customs shall have all the faculties and rights that object of the real precautionary measure. of obstructing customs activity or by refusing to
freedom, established in the above articles, with the Code establishes for the individual accuser, the collaborate with on-going investigations;

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h. Non-compliance with schedules for transfer b. Untimely electronic transmission of the cargo Art. 197.- Procedures.- When the Director e. Give or dispose of merchandise that is
or re-embarking, on the part of the owner, manifest on the side of the international cargo General has knowledge of an infraction, he shall under their control without the authorization
consignor, consignee or transporter; agent or cargo de-consolidator, except in the initiate an administrative process, in conformity with of Customs.
cases where such untimely transmission of data the norms of the administrative judicial regime of
i. Non-presentation of accompanying documents is on the part of the transporter; the Executive. 3. Duty-free stores, when:
with the customs declaration, should this is be
in conformity with manner of assigned dispatch c. A mistake on the part of the customs agent, Art. 198.- Suspension Sanctions.- Shall be a. They sell merchandise in a special regime
by the owner, consignor, consignee; excepting the importer, or exporter, in which electronic punished with up to sixty days of suspension: when the beneficiaries are persons different
cases where documentation can be backed by transmission of data that is in customs from passengers that enter or leave the
a guarantee; declaration, cannot be corrected as decreed by 1. Temporary deposits when: country or are in transit; and,
this Code; a. The use unauthorised areas for storing
j. Non-complying on the side of the owner, merchandise subjected to customs b. They do not keep up to date the electronic
consigner, or consignee, with the deadlines of d. Non-compliance with the provisions established authority; and physical inventories of the merchandise
special regimes; in the regulations of this Code, or to the ones stored.
decreed by the Director General of Customs, b. Have not indemnified the owner or
k. Over or under-valuating merchandises in a prior that had been previously published in the Official cosignatory for the amount of loss or 4. Express mail services or couriers, when:
control process; the existence of non-declared Registry, as long as it does not constitute a more damage to merchandise,
merchandise when determining duties; serious infraction. a. Have made 3 infractions.
c. When they not keep up to date physical
l. Allowing entry of merchandise in temporary e. The non-compliance or non-observance of any and electronic inventory of merchandise, b. Have been sanctioned with more than 10%
storage, without justification over it; contractual stipulation, whose sanction is not of the quantity of declarations presented
provided for in the respective contract. d. Give or dispose of merchandise under his in the same month, for non-compliance
m. - Non-delivery of storage inventory in temporary custody without following the procedure or non-observance of any regulation,
storage, when so required by customs. Art. 194.- Sanctions for offences of established by customs; and, procedures’ manual, work instructions,
Regulations.- Offenses for regulations shall be or customs administrative dispositions, of
Art. 192.- Sanction for non-delivery of punished with a fine equivalent to fifty per cent of e. Does not notify to customs authority general duty, not classified as crimes, or
information.-Customs officers or the one in the unified basic salary. Except in cases of literal abandoned merchandise. violations.
charge of district office shall sanction those who do c) of the preceding article, when they pertain to
not deliver information required by customs, with export, re-export or import, when customs value is As a consequence of suspension, the authorised c. Do not keep for the period foreseen in
closing down of the establishment of the mentioned of is less than ten unified basic salaries, sanctions authority will not be able to enter merchandise in the regulations of this Code, the registers
individual at the beginning of this article. Sanction may be ten per cent of the unified basic salary. this manner, without prejudice to those that have and documents that serve as a base for
may be lifted at the moment of compliance. If a entered may be nationalised. the elaboration of the customs declaration
person persists with non- compliance of delivering presented before the National Customs
information required by customs within thirty days, Art. 195.- Procedure and Sanctions.- Ecuadorean 2. Customs storage and authorised installations Service of Ecuador;
Customs shall ask the Judge of Penal Guarantees, Customs, previous to proceedings that shall that usually operate under the regime for
with an urgent nature, decree the delivery of said be established in the regulations, shall sanction temporary import for active improvement when, d. Do not answer before the owners of
information. The judge, within 48 hours, shall order contraventions and offences of regulations. a. Store merchandise in non- authorised merchandise that has been lost or
the release of information with the aid of public Ecuadorean customs may notify through its informatics customs storage site, designated as such; damaged while under the responsibility of
enforcement. Copies of all information shall be sent all actions issued in this proceeding. the authorized firm; and,
to the Prosecutor, so that pertinent enquiries begin, b. Store in the area authorised as customs
should that be the case. storage, unauthorised merchandise of
Chapter V forbidden import or without justification of e. Do not maintain up to date an electronic
Chapter IV its possession; and physical inventory of the merchandise.
Administrative actions applicable to
Of Regulations offences Operators of Foreign Trade c. Do not justify the use of merchandise As a consequence of the suspension, the authorized
destined to storage processes, firm may not import or export merchandise via this
Art. 193.- Regulations offenses are: Art. 196.- Incumbency.- The Director General transformation, manufacture, or repair; regime. Merchandise already embarked with a
shall have incumbency to establish administrative destination to Ecuador and prior to notification of
a. Mistake on the part of the transporter in the responsibility and sanction with suspension or d. Have not compensated the owner or the suspension, may be nationalized.
electronic sending of data of the cargo manifest, revocation of the concession, authorisation or consignee for the amount equivalent to the
which may not be subject of correction, respective permits of foreign trade operators, loss or damage of merchandise; and, Merchandise already embarked with a destination
according to this code; custom agents, and authorised economic abroad and prior to notification of the suspension,
operators, as prescribed by law. may be regularized.

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In all cases, once the sanction has been complied Art. 201.- Expiration of Sanctions.-The penal TITLE IV transport; the payment of taxes and fees, even if
with, the operator may resume foreign commerce sentences expire in double the amount of time of they correspond to different entities of the Central
operations without delay. statute of limitations, counted from the date of the Customs Administration Administration of different tax administrations,
sentence if the individual has not been deprived of that, by legal mandate or regulation, the National
Art. 199.- Cancelation Sanctions.- Temporary their liberty. Chapter I Customs Service of Ecuador should control or
customs warehouses, customs warehouses, collect.
installations authorized to operate habitually under a Chapter VII Legal Nature and Powers
regime of temporary import for final manufacturing, Art. 210.- Customs Services.- For the exercise
express mail service, couriers, and free warehouses Public Auction, Free Adjudication, and Art. 205.- Legal Nature.- Customs service is a of customs power, the National Customs
shall be sanctioned with cancelation of their Destruction public power exercised by the State, through the Service of Ecuador will have under its control
concession, authorization, or permission when: National Customs Service of Ecuador, without the services of storage, inspection, control, and
Art. 202.- Public Auction.- Public auction will be prejudice to the exercise of power by duly vigilance of merchandise that has entered, and as
a. They do not maintain or comply with the subject to the norms established for its effect, both authorized delegates and with the coordination determined by the Director; for said effects, the
requirements or conditions to operate; in the regulations of this Code and the dispositions and cooperation of other entities, subject to the National Customs Service of Ecuador may draw
dictated by the customs administration. For said present legal body, its regulations, procedures and up contracts with public or private institutions to
b. They use the authorized areas for activities ends, a third party may be contracted. operations manuals, and other applicable norms. perform said services.
different from those authorized
Art. 203.- Free Adjudication.- Appropriate free The objectives of Customs are: to facilitate foreign These contracts will contain clauses and sanctions
c. The temporary deposit has been used by assignment will proceed for merchandise found commerce and exercise control over the entry and for the cases of non-compliance of contractual
those responsible for it, to commit a customs expressly and definitively abandoned, those exit of merchandise, cargo units and transport obligations, without prejudice to other penal and
crime, money laundering, or drug trafficking as declared in judicial administrative decommission, through the borders and customs zones of the civil responsibilities that cannot be limited by the
declared and sentenced by a competent legal and those already in the process of public auction, Republic, as well as over persons directly or contract.
authority, within the terms and dispositions contained in the indirectly involved in the international movement
present Code, its regulations and other norms of merchandise; to determine and collect Art. 211.- Attributions of Customs.- The
d. Do not perform authorized activities for a period of the National Customs Service of Ecuador, in customs taxes caused by the import and export following are the attributions of Customs, exercised
of 6 months benefit of entities and companies of the public of merchandise; to resolve claims, complaints, in the form and circumstance determined by the
sector, including customs administration, when petitions, and consults of interested parties; to Regulations:
e. Incur in causes for suspension on more than 2 so required. Merchandise prohibited to import prevent, pursue, and sanction customs infractions,
occasions within the same fiscal period; and, may only be donated to the public sector, when and, in general, the powers inherent to the Customs a. Exercise vigilance over the persons,
it can serve for a specific institutional activity, or it Administration in the norms adopted by Ecuador in merchandise, and means of transport in the
f. Do not comply with the sanction of suspension shall be destroyed. Additionally, free adjudication international agreements. primary and secondary zones;
imposed by National Customs Service of will proceed in benefit of institutions of social
Ecuador. assistance, charity, education, or non-profit Art. 206.- Customs Policy.- It corresponds b. Inspect and apprehend merchandise, goods,
research, as required for the compliance of social to the National Customs Service of Ecuador to and means of transport, for effects of control
objectives, in the cases and conditions provided for execute customs policy and issue norms for their and when it is presumed the commission of
Chapter VI in the Regulations of this Code. application through the General Director. an infraction of the law in relation to the entry
and exit of merchandise in customs territory,
Statute of Limitations Art. 204.- Destruction of Merchandise.- The Art. 207.- Customs Powers.- Customs powers and solicit the prosecutor’s office for search
public servant in charge at district level or his are a combination of rights and attributions of warrants;
Art. 200.- Expiration of Penal Action.- Penal delegate will destroy merchandise as established in supranational norms, the law, and the regulations,
actions for customs crimes expire after a period the Regulations of this Code. given exclusively to the National Customs Service c. Inspect and apprehend persons and put them
of five (5) years from the date the infraction was of Ecuador for the compliance of its purpose. at the disposal of the competent legal authority
perpetrated or the last criminal act was performed. Without prejudice to that aforementioned, in case of flagrant crimes;
weapons, accessories, munitions, and related Art. 208.- Subjects of Customs Power.- The
In case a penal process has been initiated prior to items abandoned or decommissioned, will be merchandise, transport that cross through the d. Realize investigations, in coordination with
the completion of the 5-year period, the action will placed at the disposal of the armed forces for their borders, and persons directly or indirectly involved the Attorney General’s Office, when there is
expire in the same period counting from the initial control. Medicines in abandon or decommission in the international movement of merchandise, are presumption of commission of a customs crime,
notification of the charges. will be placed at the disposition of the Ministry of subject to customs powers. for which it may perform all acts that determine
Public Health. the Regulations;
The power to impose sanctions for regulatory Art. 209.- Scope of Costums Power.- Obedience
violations and failures expires in 5 years, counted to customs’ power implies the compliance of all e. Exercise coercive credit action in benefit of the
from the date of the infraction or from performance formalities and requirements that regulate the entry National Customs Service of Ecuador directly or
of the last act. and exit of persons, merchandise, and means of by delegation;

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f. Coordinate activities with other entities of the determination, resolution, sanction, and regulation e. Set out the boundaries of the area for the o. Control imported merchandise that is under
State or abroad, request information from them in customs matters, in accordance with this Code application of border traffic, in accordance with special customs regimes;
and analyze it in relation to the entry and exit of and its regulations. international agreements, this Code, and its
merchandise, means of transport, and persons regulations. p. Perform the public auction of abandoned
in Ecuadorian territory, as well as the economic Art. 213.- Administration of the National merchandise;
activity of persons in Ecuador. With respect to Customs Service of Ecuador.- The management f. Establish in secondary zones, and border
the information sent or received by the National of the National Customs Service of Ecuador is the perimeters, special control points subject to q. Authorize the direct nationalization of
Customs Service of Ecuador, the end user will responsibility of the General Director who is the international agreements, this Code, and its merchandise;
guard and keep as confidential said information; maximum authority and legal representative, on regulations.
account of which it will exercise administrative, r. The rest established by the law, as well as those
g. Require from the National Police, in the form and operating, and vigilance controls outlined in this g. Grant, suspend, cancel, or declare terminated delegated by the General Director, via resolution.
frequency established by the National Customs Code through the authorities referred to in the the licenses for customs agents, without
Service of Ecuador, the list of persons who enter previous article. delegating anyone. Art. 219.- Notifications.- Notifications effected by
and exit the country. The National Police are the National Customs Service of Ecuador through
obligated to supply the information; Art. 214.- Policy Council.- The General Director h. Resolve the consultations about the import its information system, carry complete judicial force.
shall be part of the Policy Councils convened by the duty with respect to merchandise classification,
h. Be part of the penal processes that investigate President in the related field. as well as over application of this Code and its Art. 220.- Customs Public Servants.- The
the facts behind the perpetration of customs Regulations, with submission to the dispositions Organic Law of Public Servants will govern
crimes; Art. 215.- General Director. .- The General of the Tax Code, resolution that will have binding public servants of the National Customs Service
Director will be a functionary of free appointment effect for whomever presented the consultation. of Ecuador. When institutional needs require so,
i. Regulate customs operations derived from and removal, designated directly by the President public servants that fulfill required administrative
the development of international commerce of the Republic, and should fulfill the following pre- i. Review with the law their own acts in terms operations in one area, may fulfill other required
and customs regimes even when they are requisites: established by this Code and the Tax Code, operations without it being considered a change
not expressly determined in this Code or its and revoke them when said revocation is not or administrative transfer. They will be available
regulations.Collaborate in the control of non- a. Be of Ecuadorian nationality and enjoy all contrary to law and does not generate damage for required work outside of their normal work
authorized exit of works considered artistic, accompanying rights; to the contributor; hours and will be compensated in accordance
cultural, or archaeological Heritage, and, of with the law that regulates public servants and the
species of wild flora and fauna in the primary b. Hold a Bachelors Degree from a national or j. Authorize the functioning of industrial regulations established in the present Code.
and secondary zones; foreign university. installations under the regime of temporary
import and finished manufacturing, express mail Art. 221.- Responsibilities.- The National
k. Collaborate in the control of the illicit traffic c. Possess ample professional experience in and courier, customs warehouses, duty free Customs Service of Ecuador is responsible for
of illegal drugs, the chemicals used in their foreign commerce, administration, or related stores, and the regime of international fairs. the efficient and agile dispatch of merchandise,
manufacture, weapons, munitions, and areas. completing its responsibility in cases where these
explosives in the primary and secondary zones; k. Exercise the functions of nominating authority of shall be put under judicial authority. In case of
Art. 216.- Competencies.- The General National Customs Service of Ecuador. unjustified delays in the dispatch of merchandise
l. The rest provide for in this Law. Director will hold the following attributions and imputable to the National Customs Service of
competencies: l. Issue, through resolution, the regulations, Ecuador, the institution will reimburse the costs of
Chapter II a. Legally represent the National Customs Service manuals, and instructions necessary for the storage and late fees to the affected party. Said
of Ecuador; operational, administrative, and procedural values will be discounted, up to a maximum amount
The National Customs Service of Ecuador aspects of customs valuation, and for the of one month’s unified salary, from the responsible
b. Administrate the goods, material and human creation, suppression, and regulation of public servant whose negligence caused the
Art. 212.- The National Customs Service resources, funds of the National Customs customs service fees, as well as the regulations problem, without prejudice to other administrative
of Ecuador.- The National Customs Service of Service of Ecuador, acts of investment and necessary for the efficient functioning of the sanctions. The restitution will be in accordance
Ecuador is a legal public entity, of indefinite duration, supervision, and those others required for the customs administration and those operating with the procedures determined en the regulations.
with technical, administrative, financial, and budget compliance of the purpose of the institution; aspects not contemplated in this Code and its
autonomy, domiciled in the City of Guayaquil with regulations; and, Customs procedures shall be carried out with due
legal authority throughout the national territory. c. Know and resolve complaints presented by diligence and care on the part of the pubic servants
customs users against customs personnel, as m. Authorize the customs regimes contemplated of the National Customs Service of Ecuador, striving
It is an entity to which the attributions are given well as being aware of the recourses of revision in this Code and regulations that Supranational always to prevent the deterioration of merchandise
in virtue of this Code, the technical-administrative of resolutions dictated against said employees. Organizations in customs matters decrees; subject to inspection.
powers necessary to carry forward the planning d. Know and resolve administrative complaints
and execution of the country’s customs policy, placed against the institutions’ own actions. n. Authorize changes of regimes in accordance The General Director and other functionaries of
and, in a regulated manner, the powers of tax with this Code and its regulations; the National Customs Service of Ecuador, in the

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exercise of any of the faculties of tax administration formats as those published on the website of the Unified Treasury Account, and later distributed all cases, custom agents will bear the same the
provisioned for in the law, will act with the entity, at third party request, will carry a fee in according to the General State Budget; responsibilities of a notary public.
responsibilities established in the Tax Code. accordance with the dispositions dictated by the
General Director. The National Customs Service of c. Revenues collected for contracts, licenses, and In the dispatch of merchandise involving a customs
For the establishment of responsibilities in the Ecuador may require, at any moment, of importers, royalties; agent, they shall have co-responsibility for the
exercise of their duties, the General Director or his exporters, transporters, public or private entities or related tax obligations, without prejudice to their
substitute will be under the penal jurisdiction of persons, the transfer of information in relation to d. Non-reimbursable funds from international administrative or penal responsibilities that legally
the National Court. To the same end, the public import and export activity, to facilitate the effective organizations; and, correspond. Independent of the before mentioned,
servants of high rank will be under the jurisdiction control of compliance with tax obligations derived custom agents will not be responsible for the
of the Provincial Court. from the same, granting a maximum of 15 days to e. Other revenues legitimately collected, not valuation of merchandise.
comply with the request. provisioned for in this Code.
Art. 222.- Customs Vigilance Unit.- The Customs Art. 228.- Rights and Duties of the Customs
Vigilance Unit is an administrative Unit of the Art. 225.- Data Bases.- The National Customs Agent.- The rights of the customs agent are
National Customs Service of Ecuador, empowered Service of Ecuador and the Internal Revenue TITLE V recognized throughout the country. The main duty
to execute operations related with the prevention Service, when they require, shall have free and of the customs agent is to comply with this Code,
of customs crimes and investigations in national unrestricted access, permanently and continually, Auxiliaries of the Administration of Customs its regulations, the dispositions of the National
territory, as support to the Attorney General’s via information or physical presence, to all Customs Service of Ecuador, and advise their
Office, according to the Law that Regulates information concerning foreign commerce that Chapter I clients to do the same.
Public Service and the regulations decreed by the are in the archives and data bases of the Central
General Director, in coordination with the Minister Bank of Ecuador, Immigration Police, Civil Registry, Custom Agents The granting of a license to a customs agent, his
of Labour Relations, in order to obtain permission Social Security Administration, Superintendents, rights, obligations, and the regulation of his activity,
from the competent authority to possess and carry Agency for Agro Quality, INEN, Mercantile Register, Art. 227.- Custom Agents.- An individual or legal will be determined in the Regulations of this Code
weapons. Financial Intelligence Unit of the National Police, entity whose license, given by the General Director and the dispositions of the National Customs
and other Ecuadorian entities that participate of the National Customs Service of Ecuador, grants Service of Ecuador.
The Director General of the National Customs directly or indirectly in foreign commerce. Public the right to manage, at their own cost, the routine
Service of Ecuador is the maximum authority of the servants who do not send information or put dispatch of merchandise, sign customs declarations Art. 229.- Sanctions.- While an act does make
Customs Vigilance Unit and has the power to issue obstacles to, or interfere to obtain said information, and clients invoices, when allowed by regulation a crime, customs agents will be subject to the
the regulations necessary to function. will be sanctioned with dismissal from their job. and in accordance with minimum fee schedule, following sanctions:
authorized and fixed by the General Director of the
Art. 223.- Organic and Administrative The content of the database of the National National Customs Service of Ecuador. The license 1. Suspension of the license. - Customs Agents will
Structure.- The Director General shall determine Customs Service of Ecuador is protected shall be valid for 5 years and may be renewed for be sanctioned with the suspension of their license
the organic and administrative structures and the information, and its unauthorized access and/or the same period of time. for up to 60 calendar days when they incur in the
attributions of the district units of the National use shall be sanctioned according to the Penal following:
Customs Service of Ecuador. Code. Custom Agents may contract with other operators
of foreign commerce and are obligated to respond a. being sanctioned 3 times within 12 months,
before the National Customs Service of Ecuador for for failure to comply with the Regulations
Chapter III Chapter IV information contained in their declarations. of this Title or the Rules dictated by the
Director of the National Customs Service
Information Financing of the Customs Service Custom Agents will have characteristics of both of Ecuador.
notary and auxiliary of the public sector, so that b. Being sanctioned 3 times within 12 months
Art. 224.- Information Related to Foreign Art. 226.- Financing of the National Customs customs will assume the information presented, for any of the following: 1) Obstructing or
Commerce.- The foreign commerce statistical Service of Ecuador- It is the patrimony of the faithfully conforms to all legal requirements, and hindering the control function of customs,
information processed by the National Customs National Customs Service of Ecuador, the buildings serves as a legal base for the customs declaration, either for actions to hinder the activity of the
Service of Ecuador shall be published free of and furniture that it has acquired or may acquire without prejudice to any verification that the National Customs Service of Ecuador, or
charge, without other restrictions contemplated in under any method. National Customs Service of Ecuador may perform. for obstructing the activities of the National
the Intellectual Property Law, on the web site of Customs Service of Ecuador, as well as for
the National Customs Service of Ecuador and may The National Customs Service of Ecuador will be Customs Agents, whom in the performance of their not collaborating with the investigations it
be consulted without prohibition, according to the financed by: duties, had participated as authors or conspirators may realize.
Organic Law of Transparency and Access to Public in a cover-up, shall carry penal responsibility for acts
Information. a. Assignments from the General State Budget; against public faith in what pertains to falsification 2. Non-presentation of documents that accompany
of documents, in which case, a civil judicial ruling a customs declaration, when it corresponds to
The information that shall be generated by the b. Revenue collected from fees for customs is not required prior to penal action provisioned do so, for the assigned dispatch by the owner or
National Customs Service of Ecuador in different services, which shall be transferred to the for in Art. 180 of the Code of Civil Procedure. In consignee, or

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c. Non-compliance of the obligations Chapter II
provided for in the Rules for Customs
Agents in this Code and in the rules that Authorized Economic Operators
regulate the activity of customs agents
dictated by the Director General. Art. 231.- Authorized Economic Operators.- A
person or legal entity involved in the international
2. Cancelation of License. - Customs Agents shall movement of goods and merchandise, irrespective
be sanctioned with the cancelation of their license of any function they have assumed, who comply
when any one the following occur: with norms of logistical security established by the
National Customs Service of Ecuador, in order to
a. Repeated suspension of their license within have access and perform customs paperwork.
a period of 12 months; The Authorized Economic Operators include,
amongst others, producers, importers, exporters,
b. having been sentenced for a customs transporters, consolidators, de-consolidators,
crime; international cargo agents, ports, airports, bonded
warehouses, couriers, terminal operators. They
c. not preserving the files of the dispatches for shall be regulated according to the dispositions
the period established by this Code; or, dictated by the Director General.

d. Death of the license holder or dissolution of To be qualified as Authorized Economic Operator
the company. (OEA), they must comply with the requirements of
the regulations of this Code.

Art. 230.- Auxiliaries of Customs Agents.- Persons or entities will not be considered Authorized

BOOK VI
Customs Agents may have auxiliaries for their Economic Operators if they or their representatives,
business. They must be certified by the National partners, or shareholders, have been sanctioned
Customs Service of Ecuador in accordance with for a customs crime. Whomever uses any form
the dispositions of the General Director. The of simulation to appear as an OEA is incurring in SUSTAINIBILITY OF PRODUCTION AND ITS RELATIONSHIP WITH THE ECOSYSTEM.
credentials of the auxiliary will be valid as long as prohibited activity of this Code and will lose their
the customs agent maintains valid his respective status as OEA’s, including those persons or entities
credential. The auxiliaries of the customs agents that have aided to obtain this status, and they will
may act in representation of Customs Agents, be unable to obtain authorization in the future.
before the customs administration, in all matters
except the signing of customs declarations. In case of non-compliance with customs norms
and without prejudice to the corresponding
The main duty of the auxiliary customs agents is sanctions, the Director General may suspend or
to comply with this Code, its regulations, and the revoke the authorization of an OEA, in accordance
dispositions of the National Customs Service of with the provisions and regulations of this Code and
Ecuador. the regulations dictated by the National Customs
Service of Ecuador, which regulates the activity of
The credentials of the auxiliary customs agent shall the OEA’s.
be cancelled in any of the following cases:

a) Being sentenced for a customs crime;

b) Death of the agent; and,

All other provisions established in this Code.

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BOOK VI 1) Reducing, reusing, recycling. GENERAL DISPOSITIONS of entry to a primary zone, for their approval by the
General Director.
SUSTAINIBILITY OF PRODUCTION 2) Adopting the best technology available. FIRST. - To regulate the different material that in an
AND ITS RELATIONSHIP WITH THE integral manner makes up this Code, the specific SEVENTH. - From the publication of this Code, the
3) Using responsibly determined products, regulations shall be emitted within 90 days and be Ministry of Agriculture will register banana, plantain
ECOSYSTEM
especially chemicals. in accord with the Constitution of the Republic. plantations in the country.

4) Preventing and controlling environmental SECOND. - The rights, obligations, and REFORM DISPOSITIONS
TITLE I contamination. responsibilities acquired by private citizens and
legal entities, in accord with the laws, regulations, FIRST.- At the end of Art. 72 of the General Law
Of Eco-Efficiency and Sustainable Production 5) Paying for contamination. concessions, ministerial authorizations, or contracts for Institutions of the Financial System add an insert
legally celebrated before this Code entered into law, with the following text:
Art. 232.- Definition.- For the purposes of this 6) Using gradually alternative energy. shall remain valid for the period of time that they
Code, efficient productive processes are those were issued. “ The Superintendant of Banks shall regulate a
that use clean environmental technology and low- 7) Managing responsibly and placing value to special guarantee regime for Micro, Small, and
impact, non-contaminating alternative energy, natural resources. THIRD. - All legal dispositions and regulations Medium size companies that allows the setting up
adapted to reduce the negative effects on human where it says “Customs Corporation of Ecuador”, of adequate levels, in accord with the economic
beings and the environment. These measures 8) Being Intra and Intergenerational responsible. “CAE”, or “Customs Corporation of Ecuador, CAE”, capability of this type of businesses, as well as, at
are understood as those whose design and shall say “National Customs Service of Ecuador”. the time of their conceptualization, the incorporating
implementation improve production, considering All legal dispositions and regulations where it says: and use of modern financial instruments, such
the product life cycle and the sustainable use of Art. 235.- Incentives for Cleaner Production.- “customs military police” or “customs vigilance as invoices and patents, amongst others, to be
natural resources. As well, productive processes To promote clean production and energy efficiency, service “ shall say “Customs Vigilance Unit”, included in the regulations of this law.
are those that implement modern technology, allow the State shall establish the following incentives: except in the special law that reincorporates
for the administration and rational utilization of personnel of the ex-military customs police to the SECOND.- Reforms to the Organic Law of the
resources, and prevent and control environmental a. Tax benefits created in this Code. customs vigilance service. In equal manner, all Internal Tax Regime
contamination from productive processes, services, judicial dispositions, of equal or inferior hierarchy,
and final use of products. b. Benefits of an economic nature, obtained that confer authority and power to the Customs 2.1.- Reform article 9 in the following manner:
through the transfer of “Negotiable Discharge Military Police or Customs Vigilance Service, shall
Art. 233.- Sustainable Development.- Permits”. The regulations of this Code shall be understood to be the same as that exercised by 1. Substitute numeral 15 for the following:
Persons and legal entities and other associations fix the parameters by which the firms that ask the National Customs Service of Ecuador.
considered by this Code should develop their for these benefits shall comply, and the way 15.- The revenues obtained by mercantile trusts,
productive processes in a sustainable manner and in which the market for discharge permits FOURTH. - All administrative regulations that say as long as they do not develop business activities
in accordance with the precepts of the Constitution or contamination rights will be regulated, “Board of the Customs Corporation of Ecuador” or operate ongoing concerns, according to the
and international agreements that Ecuador adheres according to the national norms and of the or “Board of the CAE” or simply “Board”, referring definition given by Art. 42.1 of this law. Also exempt
to. Autonomous Decentralized Governments, with to said collegial body, shall read “Director General shall be the revenue obtained by investment and
their respective valid time periods, the transfer of the National Customs Service of Ecuador” complementary funds.
Art. 234.- Clean Technology.- Companies, in mechanisms of these rights, and the desired or “Director General”. As well, where it is said
the course of technology substitution, shall adopt objectives of environmental quality. “General Manager” or “General Management”, shall The same way, those revenues obtained from
measures to attain cleaner production, for example: say “Director General”. investment funds and complimentary funds may be
exempt.
a. Using non-toxic and environmentally low-impact Art. 236.- Adaptation to Climate Change.- With FIFTH. - The National Customs Service of
raw material. the purpose of adapting Ecuador to the effects of Ecuador assumes all the rights and obligations of In order for the above mentioned societies, so
climate change and minimize them, private citizens, the Customs Corporation of Ecuador. Because they may benefit from such exemptions, it is
legal entities, and associations under this Code, of this disposition, all the assets of the Customs an indispensable requisite that at the moment
b. Adapting sustainable processes and using shall acquire and adopt adequate environmental Corporation of Ecuador will pass to the National of distributing benefits, yields, returns from
efficient equipment that contributes to the technologies to insure prevention and control of Customs Service of Ecuador, and in case they investments, profits to the beneficiary, part or
prevention of contamination. contamination, clean production, and the use of are subject to registration, the corresponding participant of each financial trust, the fiduciary
alternative energy. inscription will be made by law, without cost, by or funds administrator entities have done the
c. Applying in an effective, responsible, and those in charge of said registries. corresponding tax retentions in the same
timely manner, the principles of universally percentages established for the cases of dividends
accepted environmental management, codified SIXTH. - The concessionaries of temporary and profits distribution, and abiding by the
in international agreements and domestic storage service, port and airport operators, shall, in dispositions of the Regulations for the application
legislation; in particular: a period of 90 days, present the norms for control of this law, and have also presented to the SRI,

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in magnetic medium, an informative declaration exiting companies, with the purpose of making 2.3.- Reformation of article 10 in the following and the emission of greenhouse-effect gases, will
for each mercantile trusts, investment funds, new and productive investments, may benefit from form: be reduced an additional one hundred per cent,
complimentary funds that it manages, which also Income Tax exemption, for five years counted from as long as such acquisitions are not necessary
shall be presented to the General Director of IRS, the date when new income is generated and is only 1. Add the following numeral: for the compliance of dispositions of the pertinent
by a resolution of general nature, in the periodicity and directly attributable to the new investment. environmental authority, to reduce the impact of
the Director decrees. “17) For calculating income tax, mid-size businesses work or as a requisite or condition for the issuance
To the effect that what is said in this article applies, may have the right of an additional one hundred per of environmental license, card or corresponding
If the above mentioned mercantile trusts, new and productive investments shall be made cent of the costs incurred in the following items: permit. In any case, there shall be an authorisation
investment or complimentary funds do not comply outside the urban jurisdiction of the Canton of Quito of the pertinent authority.
with the above-mentioned requisites, they shall be or the Canton of Guayaquil, and within the following 1. Technical training directed to investigation,
taxed without any exemptions. economic sectors, considered priority by the State: growth and technological innovation that This additional expense shall not go over an
technology, destined has to improve production amount equivalent to five per cent of total income.
2. Substitution of paragraph following a. Production of fresh, frozen or industrialised and which benefit shall not go over one per Expenses made to obtain the expected results
numeral 15 to the following: foodstuff; cent of the amount of expenses for salaries and in this article, may enjoy the same incentive. The
wages of that year in which the benefit may regulations of this law, shall establish the technical
“15.1. - Benefits or profits obtained by private b. Forestry and agro forestry chain, and its apply; and formal parameters that have to be complied
citizens or companies for fixed time deposits, paid manufactured products; with to have access to this additional deduction.
by national or international financial institutions to 2. Expenses for productive improvement through
private individuals or companies, except to financial c. Metal mechanical; the following activities: technical assistance, This incentive does not constitute accelerated
system institutions, as well as yields obtained through market and competitiveness analyses depreciation.”
because of investment in fixed negotiable securities d. Petrochemical; and studies, for the product development;
negotiated through the stock markets of the technological assistance for development
country, and for investment in market, investment e. Pharmaceutical; of processes, products; adaptation and 3. In the second subsection of number
and complementary trusts, as long as they are implementation of designs of processes, 9, after the phrase “ obligatory social
fixed time investments or fixed-yield securities, f. Tourism; packaging, specialized software and other security”, add the phrase “whenever
negotiated in the stock market. In all of the above- services for companies’ growth, that shall be applicable”.
mentioned cases, investments or deposits shall g. Renewable energy, including bio energy or specified in the regulations of this law, and
be originally made for one year or more. These energy by biomass; which profits do not exceed one per cent of 4. In the fourth subsection of number 9,
exemptions shall not apply in those cases where sales; and after the phrase “ of the respective
the beneficiary is directly or indirectly a debtor of h. Logistics services for foreign trade; exercise”, add the following text:
the financial institution in which he has his deposits 3. Expenses of travel, lodging and commercial
or investments, or of any of its linked institutions; i. Biotechnology and applied software; promotion with the objective of accessing “When the investment is new in ZEDE and border
and” international markets, like business rounds, zones, and workers inhabiting said zones are
j. Sectors for strategic substitution of imports international fairs, amongst other costs and contracted, the deduction may be the same and
3. After numeral 16), addition of following and for fostering export, as determined by the expenses of similar nature and which shall for a five-year period of time. In this last case, the
numerals: President of the Republic. not exceed fifty per cent of the total cost and specific aspects for its application shall be in the
expenses destined tor promotion and publicity. regulation of this law.”
“17. Interests paid by workers because of loans The mere change of proprietorship of productive
given by the entity for which they work, so that said assets that are already working and operating, The regulation of this law shall determine the 5. At the end of numeral 9, add a
workers acquires shares or participations in same does not imply new investment, according to what technical and formal parameters, that the subsection that says the following:
entity, as long as the worker keeps proprietorship of has been aforementioned in this article. contributors shall fulfil so they may profit from this
said shares or participations.” benefit.” “Economic compensation paid to workers to
In case that non-compliance of the necessary reach the Honourable Salary, may be subject for
“18. The economic compensation for the conditions for the application of this article has been deduction.”
Honourable Salary.” verified, the Tax Administration, exercising its legally 2. in number 7), add a subsection with the
established powers, shall determine and collect the following text: 2.4.- Reform article 13 in the following way:
2.2.- After Art.9, addition of following article: corresponding Income tax, with no prejudice to the
sanctions that might take place. Depreciation and amortization that correspond 1. Eliminate number 2.
Art. 236.- Income Tax exemption for the to acquisition of machinery, equipment and
development of new and productive investments. To enjoy the benefits stated in this article, no technology destined to implementing cleaner 2. Substitute number 3 with the following:
- The companies that may be set up after the registrations, authorisations, or of any other production mechanisms, renewable energy
inception of the Code of Production, as well as nature, asides from the ones in this article, may be sources (solar, Aeolic or similar), or to the reduction 3.- Payments on interests of external credits and
those new companies that may be set up by already required.” of environmental impact of the productive activity, credit lines opened by foreign financial institutions,

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legally established as such, as well as the interests and technology, that shall improve productivity, Development Zones (ZEDE) from the 2.10.- Reform article 41 this way:
on foreign credits conferred government-to- generate employment and productive diversity, inception of the Code of Production, may
government, or multilateral organizations. In theses for which end they shall make the corresponding have an additional five percentage points 1. Replace the last insert of letter b) of Art. 41 for:
cases, interests shall not exceed the maximum capital increase and comply with the requisites on Income Tax rates. “Companies recently formed, new investments
referential interest rates fixed by the Board of the established in the regulations of this law. In the case recognised by the Code of Production, private
Central Bank, on the date of the registration of the of private financial institutions, savings and credit citizens required to keep accounting records and the
credit or its renovation, and if in fact they exceed, cooperatives and similar ones, they may get the 2.8.- In article 39, incorporate the following undivided succession required to keep accounting
the corresponding retention over excess interest tax cut, as long as the credits they issue are for reforms: records, which might start activities, shall be subject
rate, shall be made. Lack of registration, according the productive sector, including small and mid-size to anticipated income tax payment after five years
to the dispositions given by the Board of the Central producers, as established by the regulations and 1. In sub index one after the sentence “shall pay of effective operation, understanding the latter as
Bank, shall determine that the financial costs of the are made with the corresponding capital increase. the Only Tariff, eliminate the phrase “twenty five per the start of its productive and commercial process.
credit shall not be subject for deductions. Credits cent (25%)” and add, “provisioned for companies”; In case the productive process so requires, this
from financial institutions domiciled in tax havens or This increase in capital shall be improved with its period of time may be extended, prior authorisation
in jurisdictions with lesser tax rates.” inscription in the Mercantile Registry until the thirty 2. In sub index two, after the sentence “shall pay of the of the Productive Sector Council’s Technical
first of December of the financial year following that the unified tariff”, eliminate “of twenty five per cent Secretary Office and the IRS.”
2.5.- Incorporate the following norms to in which profits, subject of this reinvestment were (25%)” and add “provisioned for companies”;
article 36: generated, and in the case of savings and credits 2. In number 2 of art. 41, add after literal i) literals j),
cooperatives and its similar, it may be improved 2.9.- Following article 39, add the following k), l) and m) with the following text:
1. In literal “b” after the sentence “shall satisfy the according to the pertinent norms. not-numbered article:
single tariff”, eliminate the phrase “of twenty “j) For private citizens and legal entities that
five per cent (25%)”, and add “provided for In exceptional cases, and duly justified through Art. 39.1. - The company which transfers by sale commercialise and distributors of fuel to the
companies”. the technical report from the Productive Sector no less than five per cent of its shares, to at least automotive sector, the coefficient corresponding
and Economic Policy Council, the President twenty per cent of its workers, may defer income tax to the total of taxable income, because for
2. In literal “c” after the sentence “… shall pay the of the Republic of Ecuador, through Executive payment and its advance payment, for up to five fiscal income tax purposes, may be replaced by
single tariff”, eliminate “of twenty five per cent Decree, may establish other productive assists years, with the corresponding payment of interests, the cero point four per cent (0.4%) of the
(25%)” and add, “provided for companies”. over which to reinvest profits, and therefore get calculated over the active corporate rate, in the terms corresponding total spread.”
the ten percentage points discount. The definition established in the Regulations of this law. This benefit
3. In literal “e” after the sentence which in no case of productive assets shall be in the Regulations shall be applicable only as long as the shares are the “k) Tax payers whose exclusive economic activity is
shall be greater”, eliminate “of twenty five per of this law. Companies that explore and extract property of the workers. related with productive agro forestry and forestry
cent (25%)”, and add “provided for companies”. hydrocarbons shall be subjected to the minimum for its species, with a growth time period of over
tax over their base established for companies in the In case abovementioned workers transfer their shares a year, may be exonerated of the income tax
terms of sub index one of this article. to third parties, or to other shareholders, in such advance payment during fiscal years in which
2.6.- For the reduction of Income Tax rates way that not even the minimal limits provided in this they receive non taxed income, product of a
for companies, substitute article 37 for the When a company gives money loans to its partners, norm are met, the deferment shall immediately end main harvest.”
following: shareholders, participants, and beneficiaries, those and the company shall pay the remaining income tax
shall be considered as the company’s anticipated the month following verifying any non-compliance. “l) Tax payers whose exclusive economic activity is
“Art37. - Income Tax rates for companies. - dividends or benefits; therefore it shall make The benefit mentioned here might be effective during related to software or technology projects, with
Companies set up in Ecuador, as well as those the corresponding retention over the base rate the established time as long as the company’s social a growth time period of over a year, may be
branches of foreign companies domiciled in the provided for companies. Said retention shall be capital is proportionally kept or increased in favour of exonerated of the income tax advance payment
country, and those permanent entities of foreign declared and paid the month after it was done, and the workers, as prescribed in this article. during fiscal years in which they receive non
ones not domiciled, that have taxable income, shall within the tame frame provided in the regulations, taxed income.”
be subjected to the tax rate of twenty two per cent and shall be a tax credit for the company at the The regulations of the law, shall establish the
(22%) over its taxable base. moment of income tax declaration. parameters and requisites that have to be met, so as m) To the effect of advance income tax calculations,
to recognise said benefits. amounts that belong to incremental spending for
Companies that re invest their profits in the country, When referring to income tax rates for companies, generating new employment or improvement of
may get a reduction of ten percentage points of it should be understood as a twenty two per cent The present disposition shall not apply with respect salaries, as well as for purchase of new actives,
the income tax rate, of the amount reinvested in rate, for all effects provided in the Tax regime and to those workers for whose advantage the opening destined to the improvement of productivity and
productive assets, as long as they are destined to provided for in sub index one of this article. of capital is made if, outside of the labour relationship, technology, and in general those investments
purchasing of new machinery or equipment, assets they have any other type of link, spousal, family and expenses effectively made, and relating to
for watering, vegetal material, plantlets a and any 2.7.- Following article 37, add the following relatives up to level four of consanguinity, or second tax benefits for income tax payment, which is
other vegetable provisions for agricultural, forestry, not-numbered article.- of kinship, or as a party with links to the owners or the recognised by the Code of Production for new
livestock and floricultural used in their production, The entities that are Managers and representatives of the company, in the terms provided investments in the Regulations’ established
as well the purchase of goods related to research Operators of a Special Economic by tax legislature. terms, may be excluded.

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2.11.- After Art. 42, add the following Article: credit exclusively for said payment. Once transport credits of greater than a one-year term, granted FOURTH.- Add an additional paragraph to article
service has been provided, the contributor will by international financial institutions, destined to 2 of the Law of the Electric Sector Regime to say:
“Art. 42.1. - Payment of Income tax from Mercantile/ request from the Internal Revenue Service the finance their development in Ecuador, as well are
commercial/business/trade/ trusts and investment refund in the form and conditions provided for in exempt. The interest rate of said operations shall “The State may delegate the provisioning of
funds. - the corresponding resolution. be less than the active referential interest rate at electrical energy services in its phases of generation,
As established in this law, the mercantile trusts the date the credit is registered. This exemption will transmission, distribution, and commercialization to
that do entrepreneurial activities or that manage The operators and administrators of the ZEDE’s not apply to credits received from related parties public/private firms where the State holds a majority
operating businesses, shall declare and pay the have the right to a tax credit for VAT paid in the or financial institutions constituted or domiciled participation. In exceptional circumstances, it may
corresponding income tax over profits, the same acquisition of raw material, inputs, and services in fiscal paradises or jurisdictions considered tax grant to the private and popular, supportive and
way other companies do. from national territory that are incorporated in the havens.” community economy sectors, the provisioning
productive process in the ZEDE’s. The taxpayer of electric energy services in any of the following
The mercantile trusts that do not do entrepreneurial will request from the Internal Revenue Service, the 3.2.- Substitute article 177 for the following: cases:
activities or that do not manage operating refund in the ways and conditions provided for in
businesses, investment, and complimentary funds, the corresponding resolution, once the responsible “Art.177. - Taxable Base. - For calculation of taxable 1. When necessary to satisfy public,
as long as they obey numeral 15 of article 9 of this operative technical unit of supervision and control base, this shall be considered as the total area, at collective, and general interest; or,
law, may be exempt from income tax. Without of the ZEDE certifies, under its responsibility that national level, of rural real estate, determined by
prejudice to it, they may only present an informative said goods are part of the productive process of the land registry that shall be made together by 2. When the demand for service cannot be
declaration of income tax, in which the status of the the acquiring company. the municipalities and the Minister of Agriculture or satisfied by the public companies.”
trust or mercantile is stated. their equivalent. This information shall be sent and
updated annually to the Internal Revenue Service in
For taxes purposes, it shall be understood that a 2.14.- In every disposition of the Law of the accordance with the regulations for the application FIFTH.- Reform the Labour Code with the following
mercantile trust is one that does entrepreneurial Internal Tax Regime where it is said: “FOB of the Rural Land Tax.” dispositions:
activities or that manages operating businesses, value” and “CIF value”, substitute said
when the object and/or activities it does are of words for the phrase “value in customs”. 3.3.- In article 180, make the following 1. In article 81, add the following inserts:
industrial, commercial, agricultural, services, as well changes:
as any other operation for profit making, and that 2.15.- In the second to last subsection of the “The Basic Salary is the minimum economic
are commonly done by other types of companies. numbered article after article 4, delete the a. Substitute the text of literal a), for the following remuneration that a person must receive for his
phrase “ for which purpose they may base text: “a) real estate located in the moors work from his employer and which makes up part
The same way, for applying the anticipated income it on the information of the OCDE and ecosystems, duly defined by the Ministry of the of his total compensation, but does not include the
tax, in the case of mercantile real estate trusts, and the International Financial Action Group Environment.” income in the form of money, kind, or services, that
for the purpose of determining the start of effective – GAFI.” is derived from supplementary work, commissions,
operations, the real estate business project, or any b. In literal g) at the continuation of the phrase profit participation, reserve funds, benefits, per
of its phases, should comply with the break-even THIRD. - Reforms to the Tax Equality Reform Law “priority ecosystems”, substitute the period “.” diem, occasional subsidies, additional pay, nor
point.” of Ecuador For a comma “,” ; and include the phrase “duly any other conventional remuneration or those
qualified by the Ministry of the Environment”. determined by Law.
2.12.- Reform Article 55 thus: 3.1.- In article 159, incorporate the following
inserts: c. At the end of article 180 add the following literal: The amount of the Basic Salary shall be determined
After literal d) of numeral 9), add literal e) with the by the National Salary Council (CONADES), or
following text: “Payments abroad for the amortization of capital i) Rural property over which force majeure by the Ministry of Labour Relations in case an
and interest for credits of greater than a one-year or fortuitous cases have occurred, duly agreement cannot be reached in CONADES.
“e) The Managers and Operators of Special term granted by international financial institutions, justified and certified by the Minister
Economic Development Zones (ZEDE), where the destined to finance investment allowed in the of Agriculture, which gravely affect the The annual salary revision of the Basic Salary will
imported goods are destined exclusively to the Code Of Production, are also exempt. In these performance and productivity of same. be carried out in a progressive way, until it reaches
authorized zone or incorporated in a one of the cases, the interest rate of said operations shall be the Honourable Salary, in accordance with the
production transformation processes developed less than the active referential interest rate at the 3.4.- Substitute article 181 for the following: Constitution of the Republic and the present Code.”
there.” date the credit is registered. This exemption will
not apply to credits received from related parties “Art. 181. - Liquidation and Payment. - The Internal 2. At the continuation of Art. 105, incorporate
2.13.- In article 57, incorporate 2 inserts with or financial institutions constituted or domiciled Revenue Service will determine the tax, based the following numbered article:
the following text: in fiscal paradises or jurisdictions considered tax on the land registry elaborated together with the
havens. Payments abroad by the administrators municipalities and the Minister of Agriculture or “Art. 105.1. – By prior agreement of the employee
“As well, the taxpayers that have as their business of the ZEDE’s, both for the import of goods and their equivalent. The private citizen or legal entity and the employer, all or part of the profits that
the transport of cargo abroad and have paid IVA services related to their authorized activity, and shall pay in the form and dates determined in the correspond to the employee may be paid with
in the acquisition of jet fuel, have the right for a tax for the amortization of capital and interest for regulations for the application of this tax.” shares of the company where the employee

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works, as long as the firm is registered in the Stock EIGHTH.- Substitute article 2 of the Law for the 4. Substitute Article 9 for the following: 4. Knowing the results of the Ecuadorian Institute
Market and complies with the ethical protocol Development of the Port of Manta, for the following: for Norms-INEN, as well as of the Ecuadorian
for companies as defined by the State and the “Art. 9.- Create the Inter-Ministry Committee Accreditation Organization-OAE, and share the
requirements in the Regulation of the Code of “Art.2. - The Special Inter-institutional Commission for Quality as the authority for coordinating and recommendations with the organizations that
Production, Commerce, and Investment.” for the Port of Manta, as a legal entity, shall have formulating the policy for sector quality, and shall make up the Ecuadorian Quality System.
the nature of an advisory organization to the Board be made up from the following public entities:
3. In the second insert of Art.17 of the Labour of the Manta Port Authority, with the objective of 5. Resolve, as last resort, conflicts that arise from
Code, after the word “continuous”, add becoming responsible for the promotion of the 1. Coordinating Minister of Production, this law as a result of actions or omissions by
the phrase “or discontinuous”, and at the International Cargo Transfer Port project in the Employment, and Competitiveness. entities that make up the Ecuadorian Quality
end of the same insert add the following: port of Manta. To comply with these ends, the System.
Commission will enjoy administrative, economic, 2. Minister of Industry and Productivity, who will
“The salary or wages paid for temporary contracts, and technical autonomy. The commission shall preside over the committee or name a delegate. 6. Issue the guidelines for the evaluation
shall be increased 35% over the per-hour value of contain the following members: procedures for compliance and related to the
the basic salary of the sector to which the employee 3. Minister of the Environment or a named obligatory certification of products, systems,
belongs.”. At the end of the third insert add the a) The Mayor of Manta, as presiding officer; permanent delegate. and private citizens that perform specialized
following: “The salary or wages paid for temporary labour.
contracts, shall be increased 35% over the per- b) A representative of the Chamber of Production 4. Minister of Tourism or a named permanent
hour value of the basic salary of the sector to which of Manta, legally constituted; and, delegate. 7. Coordinate and facilitate the execution, in
the employee belongs.” an integrated manner, the national policies
c) The President of the Board of the Manta Port 5. Minister of Agriculture. pertinent to quality.
4. Following Article 23, add the following Authority
article: 6. Minister of Public Health or a named permanent 8. Promote and request the preparation of
The Municipality of Manta will provide the delegate. investigation, technical and legal studies for
“Art.23.1. - The Ministry of the area may administrative facilities for the functioning of the the development and adjustment of the quality
regulate those special work relationships that Commission. Additionally, the Commission will 7. Minister of Transport and Public Works or a policy.
are not regulated by this Code, according to the be financed with resources from national and named permanent delegate.
Constitution of the Republic.” international organizations that serve to accomplish 9. Request the preparation and validation of
its purpose. 8. Minister of Electricity and Renewable Energy or parameters to promote awareness of a culture
5. In the second subsection of Art.95 a named permanent delegate. of quality in goods and services.
of the Labour Code, after the phrase The Board of the Manta Port Authority shall consult
“the thirteenth and fourteenth the Commission when it must make decisions The Sub Secretary of Quality from the Ministry of 10.Request the participation and advice of work
remunerations,”, add the following text: related to the development of the International Industry and Competitiveness shall act as Secretary groups with institutions and organizations that
“the economic compensation for the Cargo Transfer Port project of Ecuador in the Port of the committee. require compliance of their duties.
Honourable Salary.” of Manta. The pronouncements of the Commission
will be of non-binding technical advice nature.” 5. After article 9 add the following numbered 11.Promote the activities of training, technical
SIXTH.- Reforms to the Social Security Law:t article: assistance, specialization, and widespread
NINTH.- In the Ecuadorean Quality System Law, diffusion of quality themes in goods and
1. Add a numeral to Art.14 of the Social make the following modifications: The Inter-Ministry Committee shall have the services.
Security Law to say: “The economic following authority:
compensation for the Honourable Salary.” 1. In the first subsection of article 7, 12. Promote the securing of additional resources
2. At the end of the second insert of Art.11 of eliminate the phrase “and private”. 1. Approving the National Quality Plan. and the complementary inter-Ministry assistance
the Social Security Law, add the following 2. Substitute literal a) of article 8 and add and cooperation for the issues of climate
phrase: The economic compensation to literal e) as: 2. Formulation of policies for the implementation change, through the institution established for
achieve the Honourable Salary shall not and compliance of the present law. said effect; and.
be taxed.” “a) Inter-Ministry Quality Committee”
3. Formulation of policies that shall be the 13.Issue the necessary norms for its functioning
SEVENTH.- Reform article 165 of the Law for “e) Ministry of Industry and Productivity (MIPRO)” base for defining those goods and products and regulate the exercise of its authority. All
Investment Promotion and Citizen Participation, that must comply with technical regulations matters lacking norms for its functioning, shall
published in the Supplement to Official Registry No. 3. Add the following subsection after article and procedures to evaluate compliance; be governed by the Judicial and Administrative
144 of 18 August 2000, in the following manner: 8: “The Ministry of Industry and Productivity coordinating the activities of the entities that Regime of the Executive Branch.
where it says “National Training Council and (MIPRO) will be the governing institution of makes up the Ecuadorian Quality System.
Professional Formation”, it will say “The Governing the Ecuadorian Quality System.”
Body for Training and Professional Education”.

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An Inter-Ministerial Consultant Committee will be 8. After Article 12, add the following elaboration, adoption, and application of the “Art. 22.- In relation to the OAE, 4. Substitute the
convened and made up of representatives from the numbered article: OTC norms of the World Trade Organization. first insert of article 22 with the following:”
productive, academic, and consumer sectors.
“The National Quality Plan will be valid for one year - Substitute in literal g) the phrase “propose to “Art. 22- In relation to the OAE, the Ministry
The INEN and OAE will have their respective from the approval in the month of January by the CONCAL”, with “propose to the Inter-Ministerial of Industry and Productivity shall have the
technical advisory committees that will include the Inter-Ministerial Quality Committee and must be Quality Committee”. following powers:”
participation of the productive sector, universities, evaluated two times during this period.
and experts in the field of these entities. - In literal j), replace the word “CONCAL” with the 16.In literal a) of Art. 22, replace the word “CONCAL”
The contents of the National Quality Plan will be “Minister of Industry and Productivity”. with “Inter-Ministry Quality Committee”, and
It shall be compulsory to consult these advisory focused on the following aspects: in literal i) replace the word “CONCAL” with
committees, and their pronouncements will be “Ministry of Industry and Productivity”.
non-binding. a. Promotion of quality. 13.- Substitute Article 18 for the following:
iamientos tendrán carácter referencial no vinculante. 17. In article 23, substitute the phrase “may remain
b. Preparation and review of the list of products Art. 18- The General Director of the INEN shall be four years in the exercise of his duties and may
6. Eliminate articles 10 and 11 subject to quality control. of free appointment and removal by the Minister of be re-elected.” For “will be of free appointment
Industry and Productivity; shall be a professional and removal by the Minister of Industry and
7. Substitute article 12 for the following: c. Guidelines for the elaboration of technical with a university Bachelors degree in Science and Productivity.”; in letters f), g), h), substitute the
regulations. a Master Degree in a relevant field; with ample phrase “Director of the OAE” for “Minister of
“Art. 12- For the execution of policies dictated by technical and professional experience in the areas Industry and Productivity”; in letter k) eliminate
the Inter-Ministerial Quality Committee, the Ministry d. Guidelines to promote and develop the related to this law. the phrase “at the request of the Board” and
of Industry and Productivity will have the following designation and accreditation of organizations “will be known and signed by the Board”, and
powers:s: of evaluation, which include: local and foreign The Director will be the legal representative of replace “National Quality Council” with “Ministry
laboratories, organizations of certification and the INEN. He or she will be responsible for the of Industry and Productivity”.
a. To advise the Inter-Ministerial Quality Committee inspection of products and services established performance of the entity, in compliance with all
in the study, design, and feasibility of the in literal a) of this article. laws and regulations. He or she will convene, in 18 In article 26, replace the word “CONCAL” with
programs and projects, in order to comply with coordination with the involved sectors, technical “Ministry of Industry and Productivity”.
the objectives of this law; e. The Procedures for Evaluation and Compliance.” committees to prepare norms and regulations.
The Director General, at the request of the Minister 19.In the second insert of Art. 28, replace the
b. To Comply and enforce the dispositions of the of Industry and Productivity, should present, for word “CONCAL” with “Inter Ministerial Quality
Inter-Ministerial Quality Committee. 9. Eliminate Art. 13. approval, the projects of technical norms and Committee” and “Director of the OAE” for
regulations, as well as studies and other documents “Ministry of Industry and Productivity”.
c. Sign all classes of contracts, agreements of 10. In article 14, after the phrase “Public considered appropriate, in relation to the approved
mutual recognition with international institutions, Right”, add “assign the Minister of plans and programs. 20. In article 29, second paragraph, replace the
and agreements for technical and financial Industry and Productivity,” phrase “National Quality Council” with “Ministry
cooperation with the approval of the Inter- The Director General will be responsible to carry of Industry and Productivity” and eliminate the
Ministerial Consultant Committee. 11.Eliminate Article 16. out investigations concerning presumed infractions word “policies”.
of this law and make the respective report to
d. Impose the corresponding sanctions for be presented to the Minister of Industry and 21 In Art. 34, replace the word “CONCAL” with
violations of the dispositions of the present law, 12.In article 17, incorporate the following Productivity for his knowledge and signing. “Ministry of Industry and Productivity”.
based on reports presented by the INEN or the reforms
OAE. It corresponds to the Director of INEN to contract 22.In Art. 40, second insert, replace the words “of
- Substitute the first subsection with the following: and dismiss the employees of the institution. He the board” with “of the Ministry of Industry and
e. Temporarily designate laboratories, compliance “Art 17. – In relation to INEN, the Ministry of may sign all manner of acts and contracts that are Productivity”.
evaluation organizations, and other entities Industry and Productivity shall have the following necessary for the development and compliance
necessary for specific issues, if they do not exist duties and powers.” with the institution’s activities, and, may make the 23.In article 46, literal c), replace the word
in the country. The designated organizations annual budget of the entity. “CONCAL” with “Ministry of Industry and
cannot give accreditation services in areas - Replace literal f) with the following: “approve the Productivity”; in letter k) and l) replace the
outside the scope of their designation. proposals of norms and technical regulations 14.In the first subsection of Article 20, phrase “INEN Board” with “Ministry of Industry
and procedures for compliance evaluation after the phrase “Public Right”, add, and Productivity”.
f. All others, for compliance of the policies dictated in the field of competition. The technical “attached to the Ministry of Industry and
by the Committee, shall not provide services in norms voluntarily emitted by the INEN (Norms Productivity,” and eliminate subsections 24.In article 47, final subsection, replace the phrase
their condition as accredited agents, other than NTE INEN), will be of official nature and shall 2,3,4,5, and 6. “INEN Board” with “Ministry of Industry and
those within their fields. comply with the Code of Good Conduct for the Productivity.”

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Agriculture will organize negotiation meetings. In If found to be in non-compliance, the administrative TRANSITORY DISPOSITIONS:
25. In article 48, replace the phrase “INEN Board” case the parties cannot come to an agreement, the authority in charge of the process, and after a
with “Ministry of Industry and Productivity”, Ministry of Agriculture will fix the price by ministerial hearing from the interested parties and having FIRST.- The reduction in Corporate Income Tax
agreement. It will also fix the minimum reference received a technical report, will apply a fine of (CIT) considered in Art. 37 of the law of the Internal
26.In article 50, replace the word “CONCAL” with price (FOB) to be declared by the exporter, in twenty five and fifty times the value of the evasion Tax Regime will apply in a progressive form in the
“Ministry of Industry and Productivity” accordance with the different packaging and of non-compliance, will return to the producers following terms:
specifications. The mechanism for fixing the price the value of the evasion and/or non-payment, and
27.In article 52, first and second insert, replace the will be determined by regulation.” will order the suspension of export permission for During fiscal year 2011, the CIT will be 24%.
word “CONCAL” with “Ministry of Industry and fifteen days, without prejudice to any civil or penal During fiscal year 2012, the CIT will be 23%
Productivity.” 10.2 In the fifth insert of article 1, substitute the actions that may follow. During fiscal year 2013, the CIT will be 22%”
words “intermediary” for “commercial agent, these From fiscal year 2013 and on, the CIT will be 22%
28. In Art. 53, literal b), replace the phrase “National being the business chambers of banana and In case of repeated offenses, the suspension of
Quality Council” with “Ministry of Industry and plantain producers”; and in addition, substitute in export permission will be thirty days. After three SECOND.- For effects of fulfilling the idea of
Productivity”. the same subsection, the words “”thirty days” for offenses, the sanction will be sixty days, and, after greater citizen participation, diversify the ownership
“one year”. four offenses, the suspension will be permanent and open the capital structure of firms with State
29. In Art. 57, replace the word “CONCAL” with and definitive. ownership, in a period of one-hundred and eighty
“Ministry of Industry and Productivity.” 10.3 Add after the fifth subsection of article 1 the days from the inception of this Code, the State
following text: Repeated offenses are considered as non- shall define the conditions and mechanisms for
30. In the first subsection of Art. 58, replace the compliance within a period twelve months. the process of divestiture of said companies, as
word “CONCAL” with “Ministry of Industry “Except the guarantee of the agents that buy fruit long as they are not part of the strategic sectors
and Productivity”: in the second subsection, from the producers. The Ministry of Agriculture, 10.7 After the third subsection of article 4, add the of the economy, established by the Constitution.
replace the phrase “National Quality Council after a technical analysis, will determine who are following text: This way, in the given period, the Production
so that its President” with “Ministry of Industry the exporters that are exempt from presenting Sector Council, in the field of its competency, will
and Productivity, who”; in the sixth subsection, guarantees.” “The exporter is oblige obligated to pay for the design the mechanisms for the financing and sales
replace the word “CONCAL” with “Ministry of purchase of the bananas, plantains in their different process for the respective shares or companies,
Industry and Productivity”, and in the seventh types, in a period of eight calendar days, counting in benefit of the Ecuadorian people or investors in
subsection, replace the phrase “National 10.4 In the sixth subsection of article 1, substitute from the bill of lading, through the transfer of funds general, giving preference to the workers of said
Quality Council” with “Ministry of Industry and the words “ in favour of the producer” with “in using the Interbank Payment System (SPI) of the companies.
Productivity” and replace the word “CONCAL” favour of the Ministry of Agriculture”. Central Bank of Ecuador, from the checking and/or
with “Ministry of Industry and Productivity”. savings account of the exporter, to the respective THIRD.- Duty-Free Zones, whose concessions
10.5 Add after the sixth subsection of article 1, the account of the producer and/or agent. The non- have been granted under the Law of Duty-Free
31.Eliminate the first and second general following text: use of the Interbank Payment System will carry with Zones, will continue operating under the conditions
dispositions. it an administrative fine equivalent to the amount at the time of authorization for the remainder of
“All producers, agents, and exporters are obligated evaded or not paid through the (SPI)”. the concession. However, the administrators and
to sign buy-sell contracts for the fruit and will users of the present duty-free zones are subject to
TENTH.- Reforms to the Law to Stimulate and respect the clauses that are freely and voluntarily 10.8 Eliminate the fourth subsection of article 4 the administrative and operational dispositions of
Control the Production and Sale of Banana and agreed upon between the parties, under the this Code.
Plantain, destined for export, codified in RO-S315 condition that they are not against the present law 10.9 In the first subsection of article 8, after the
of 16 April 2004. and regulation. The exporter that does not sign words “present Law,” add the following: FOURTH.- At the time of the enactment of this
contracts with the producers and or agents will not Code, and for the effects of their qualification,
10.1 Replace the first and second subsections of be allowed to export. “that has not been previously authorized by the companies that desire to register themselves as new
article 1 with the following text: Ministry of Agriculture”. users of the duty-free zones that are functioning,
10.6 Replace the first subsection of article 4 with shall comply with the norm required from the
“Art. 1- Minimum Price Support. - The Executive the following text: operators of Special Economic Development
Branch, through an agreement with the Ministry Zones (ZEDE); and they may be approved when
of Agriculture, will fix in U.S. Dollars, the minimum “Art.4- Sanctions for Non-Compliance and they are in accordance with a qualified investment
support price that a banana producer must Repeated Offenses- The Ministry of Agriculture, plan presented to the Duty-Free Zone.
compulsorily receive at the pier, for each of the through its corresponding administrative authority,
distinct classes of packaging and specification by law, or through written complaint, will verify that FIFTH.- The firms that administer the duty-free
for bananas and plantains for export, and for exporters and/or agents pay the producers for zones that desire to convert to a ZEDE, will be able
any agreement or commercial contract allowed their bananas, plantains, the established minimum to do it provided that their request is presented to
under present law. For this reason the Ministry of support price. the pertinent authority up to six months prior to the
end of their concession. In cases where possible,

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the Production Sector Council will give priority to SEVENTH. - With respect to the redeemable EIGHTH.- The actual board of the Customs judge or tribunal is to return the merchandise,
migration of existing Duty-Free Zones to the new quotas collected y CORPEI, the following is issued: Corporation will continue its functions for a period the administration will return the proceeds of
mode provided for in this code. of 90 days from the promulgation of this Code, the public auction and, if the merchandise is
Without prejudice to that stipulated in the with the objective to conclude the matters that decommissioned, the proceeds will be deposited
SIXTH.- As of the publication of this Code in the preceding Transitory Disposition, the redeemable remain pending to resolve. After this period, the in the Unified Treasury Account.
Official Registry, it is decreed that planning and final quotas created by Law 24, published in Official continuation and resolution of unfinished processes
execution of export promotion and non-financial Registry 165 of 2 October 1997, will continue will pass to the authority of the General Director. The same procedures will be followed with
investment, both in and out of the country, that being collected until 31 December 2010 for the respect to goods that are not under judicial
have been in charge of the CORPEI under that CORPEI, at that moment that the obligation ceases NINTH.- The Public Servants that have positions order and are under the custody of the National
established in Title IV, Chapter I, of Law No. 12: to contribute said redeemable quota. within the Customs Corporation will be moved Customs Service of Ecuador. In this case, if
Law of Foreign Commerce and Investment LEXI, to positions in the National Customs Service of no person demonstrates a legitimate claim
published in the Official Registry 9 June 1997, will 2o For the effects to refund the redeemable quota, Ecuador. over said merchandise, the proceeds from the
be assumed by the Ministry of Foreign Relations, certificates, and coupons of the contributors, The public servants that are part of Customs public auction will be deposited in the Unified
Commerce, and Integration, in coordination with in the corresponding periods, the CORPEI will Vigilance Service at moment that the Code Treasury Account; on the contrary, if a person
the other entities and institutions of the state in this constitute in a pertinent period of 90 days the becomes law, will be moved to positions in the demonstrates a legitimate claim over said
field, until the President of the Republic, in exercise trusts considered necessary and sufficient for National Customs Service of Ecuador, through a merchandise, a process over the corresponding
of his powers provided for in numeral 5 of Article the refund of the contributors funds. Said trusts process of reclassification, be it in the Customs claim will be transmitted in accordance with the
147 of the Constitution of the Republic, structures will be constituted in a Public Sector financial Vigilance Unit or other operating units in the entity, dispositions of the applicable legislation.
and regulates the functioning of the Institute for institution with the resources that conserve the respecting at every moment their pay and labour
Export Promotion and Foreign Investment. statutory and technical corresponding restitution. stability in accordance with the law of Public If it is determined there are goods without
The general characteristics of the trust, as well as Service. commercial value, and within the time period
In accord of that is established in Title XXX of whatever other aspect that relates to the net equity stipulated in the present disposition no person
the Civil Code, the CORPEI will remain a non- of CORPEI generated before 31 December 2010, TENTH.- Until the new General Director takes makes a legitimate claim, the destruction of
profit legal entity, contributing to the country’s will be incorporated in the reforms of the statutes charge, whomever is in the post of General the goods will proceed without delay. If the
development, through private promotion of exports considered in Transitory Disposition N.6. Manager of the Customs Corporation, will assume merchandise in this case is clothing whose import
and investment in the country and abroad. the functions of the General Director of the National is prohibited, it will be transferred to the Ministry in
3o So as to insure that the contributors that have Customs Service of Ecuador. charge of social policy for its respective donation.
In this context, because of that established in the completed US $500.00 in coupons go to exchange For the realization of the process detailed in this
present disposition, the CORPEI, in a maximum for certificates of contribution of the CORPEI ELEVENTH.- The good and merchandise disposition the authority may contract with the
of ninety days from the publication of this law in for their respective restitution, the CORPEI will that are stored, under custody of the Customs private sector.
the Official Registry, will reform the Statutes, in convene by notice through a major newspaper of Corporation or en warehouses rented by said
reference to its functions, activities, members, widespread circulation, once every three months, institution, for whatever reason, will be submitted TWELFTH.- The administrative and judicial
administrative entities, board, resources, and from the publication of this Code in the Official to a process of valuation and inventory by the processes that have been filed against the
equity; it will eliminate competencies, functions, Registry. The contributors will have two years to institution, except that which has already been customs authority or that the authority has filed
and assignments, that for these dispositions shall exchange their coupons for CORPEI certificates of valued by an expert within a judicial process, in against customs users, including until year 2000,
be assigned to a specialized public entity for contribution. At the same time, the period for the which case this shall be the value of the good. and whose quantities do not exceed US $1000,
promotion of exports and foreign investment. The payment of the certificates will be 10 years from the will be dismissed by the judicial or administrative
Ministry of Foreign Relations shall carry out the emission of the last coupon paid by the CORPEI. After the valuation of the goods, three authority and eliminated from fiscal accounts,
reform of the statutes of the CORPEI, within thirty 4o In equal form the contributors that have publications will be executed every eight days whether it concerns reclaimed values by the
days after having presented the corresponding not completed US$500.00 in coupons will be in two newspapers of widespread national customs user or to be recovered in favour of the
project to be known and resolved. convened by notice through a major newspaper publication, giving a period of 20 days from the treasury.
Being a policy and strategic objective of the of widespread circulation, so that in a period of date of the last publication for those persons
Ecuadorian State, provided for in the Constitution, two years they convert the CORPEI certificates of who believe they have rights with respect to the THIRTEENTH.- Until it is promulgated the
the state shall keep its representation in the CORPEI contribution. The payment of the certificated will goods to certify their claims in due legal form. reforms anticipated in the regulations of the
as a member of the assembly general and as a board be within a period of 5 years from the date of the Organic Law of Customs and/or promulgated
member, for the purpose of coordinating policies in emission of the last coupon paid by the CORPEI. If within the designated period it is determined the respective administrative dispositions for
the field of foreign commerce and optimizing human 5o The unclaimed money of the contributors that the goods are submitted to a judicial the case of consumable goods, live animals,
and economic resources. Therefore, the Ministry held by the trust in the form of coupons and process, they will be publically auctioned, with perishable or easily decomposable goods, article
of Foreign Relations will establish cooperation certificates will be used to finance projects for the disposition that proceeds from the auctions 157 of the General Regulations of the Organic
agreements with the CORPEI for the purpose of promotion and investment between the Ministry are deposited with the National Customs Service Customs law, published in the Official Registry N.
taking advantage of its experience and technical of Foreign Relations, Commerce and Integration, of Ecuador according to that established in the 158 of 7 September 200 will apply, as well as the
capacity in trade promotion and investment. and the CORPEI, conforming to the particular regulations, until the end of the corresponding internal manuals that regulate it. In other cases,
characteristics of the trusts. judicial process, in which case if the order of a until the regulations of this Code are promulgated,

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the Director of the Customs Corporation, while curriculum based on the professional profiles for become a permanent acquired right of the five years may be granted under the tax code for
it exists, and after, the General Director of the developmental training and personal formation, workers. facilitation of payments.
National Customs Service of Ecuador, may and in addition, the recognition of labour
dictate technical norms for their application. competencies through labour evaluation and TWENTY FIRST.- For fiscal year 2010, the TWENTY THIRD.- within a period of 60 days from
certification. period for the declaration and payment of the the entry in force of this Code, the administrative
FOURTEENTH.- Upon entering into law the Rural Land Tax will be until 31 December of said resources and personnel of the Council of Foreign
present Code, the General Director of the For this effect, the Training and Professional fiscal year. Trade (COMEXI) and Investment will be transferred
National Customs Service of Ecuador, subject to Formation Entity may finance all activities and to the ministry designated by the Technical
the law and institutional necessity, may stipulate direct and indirect costs that make possible TWENTY SECOND.-In the case of property Secretary of the governing body for commercial
the administrative transfer of public servants of a system based on labour competencies, to located in the Amazon region, for the time period policy. Equally, all resolutions adopted by the
the institution, including those that members of include studies, identification of professional covering fiscal years 2010 through 2015, the COMEXI will maintain their validity and provide for
the Customs Vigilance Service. profiles, designing of norms and standards, process that generates the tax will be produced their respective legal effects until they are expressly
design of curriculum, training programs, and with property or land area that exceeds 70 revoked.
FIFTEENTH.- Within a period of 90 days from evaluation and certification, amongst others. hectares, under the terms of Article 174 of the
the entry in force of this Code, the respective Tax Equality Reform Law of Ecuador. However, TWENTY FOURTH.- Within a period of 60
modifying contracts with the concessionary NINETEENTH.-The resources that have been those that have cancelled the tax corresponding days from the entry in force of this Code, the
companies for customs services will be signed in generated for the application of article 1 of to 2010, and do not possess properties greater administrative resources and personnel of the
accordance with the new norms. the Reformatory law of the Law of the Port of than 70 hectares, will have the right to a tax National Council for Quality, the Bureau Statistics,
Manta Development published in Official Registry refund for unjustified excess tax paid under the and the OAE Directorate will be transferred to the
SIXTEENTH.- Within a period of 90 days from numbers 323 of 22 May 1998, until the entry Tax Code. Ministry of Industry and Productivity. Equally,
the entry in force of this Code, the Director of in force of this Code, will be distributed in the all resolutions that these entities have adopted
the National Customs Service of Ecuador will following form: In case the liable person is in possession of or at will maintain their validity and provide for their
decree the regulations that regulate the Customs 10% of said resources will be sent to the Special the same time owns land in the Amazon Region respective legal effects until they are expressly
Vigilance Unit, within which will be established Interinstitutional Commission for the Port of and in other regions of the country, the calculation revoked by the Interministerial Quality Committee
the attributions, responsibilities, and organic Manta, to be invested in studies and promotional of this tax will be based on the maximum sum of all of by the Ministry of Industry and Productivity,
structure. projects for the development of the port and the land owned less the land in the Amazon Region whomever corresponds.
airport of Manta, oriented towards the formation for the fiscal period. The resulting positive number
SEVENTEENTH.- The competent institution of a logistical service centre, without detriment will be the base of the tax. However, if the number TWENTY FIFTH.- All fines for regulatory infractions
that will exercise administrative control over the that the funds can be used as well for complying of hectares possessed in the Amazon Region is registered in the Interactive System of Foreign
Special Economic Development Zones (ZEDES) with contractual obligations contracted before less than 25, the tax liability will be based on those Commerce (SICE) of the Ecuadorian Customs
will be established with corresponding public the entry in force of this Code. hectares that exceed 25 hectares of the sum total Authority under the Organic Customs Law up until
servants, financial and administrative resources, The other 90% of the resources will be sent of rural land owned at the national level. 30 October 2010, except those registered for late
and the infrastructure of the National Duty-Free Manta Port Authority, and will serve to finance presentation of customs declaration, or for non-
Zone Council. the public works of the port, as well as for the Beginning in 2016, for the calculation of rural lands collaboration with customs control, or for cases of
execution of projects for the International Cargo located in the Amazon Region, the following table non-payment over which the Customs Authority
EIGHTEENTH.- In a period of 60 days from the Transfer Port of Ecuador in the Port of Manta. will apply: has not initiated legal procedures for payment,
publication of this Code, the President of the The promotion of said project will be executed will be eliminated from the customs administrative
Republic, through Executive Order, will designate in coordination with the Special Interinstitutional FISCAL YEAR LÍMITE (HECTÁREAS) information system by the Director of the National
the structure and make-up of the “Training Commission for the Port of Manta. At a later 2016 61 Customs Service of Ecuador.
and Professional Formation Entity”. Until said date, the resources generated as a consequence 2017 52
entity is designated, the National Training and of the legal dispositions of this article will be 2018 43 REPEAL OF DISPOSITIONS
Professional Formation Council will continue as assigned to the Manta Port Authority for the 2019 34 Apart from the established Transitory Dispositions,
the governing entity. execution of projects for the International Cargo 2020.... and beyond 25 from the date of the validity of this Code, all norms
Transfer Port of Ecuador. that are contrary to the dispositions of this Code
To comply with the rules of the Code concerning In any case, for the payment of the Rural Land stand repealed. In addition, the following norms
professional and technical training, the Training TWENTIETH.- The payment of economic Tax, as long as it is not taken into account with are expressly repealed:
and Professional Formation Entity, within a compensation to arrive at the Honourable Salary a actualized national land registry and this is not
period of 18 months from the norms of the will be realized over the base stated in article 8 sent to the Internal Revenue Service in conformity a. Code N. 2006-004 of the Law of Industrial
Code entering in force, will consolidate a of this Code when the sum of the Basic Unified with the present law and its regulations, the Promotion, published in Official Registry N. 269
professional training system based on labour Salary plus the components contemplated in liable persons will declare and pay this tax in the of 12 May 2006;
competencies, with the corresponding structural article are less than the Honourable Salary or until authorized financial institutions according to the b. The law of Small Industry Promotion, contained
and administrative changes, in such form that the the Basic Unified Salary is equal to it. Under no format of the Internal Revenue Service. For proven in Supreme Decree N. 921, published in the
methods of financing lead to the establishment of circumstances will this temporary compensation cases of Force Majeure of the tax authority, up to Official Registry N. 372 of 20 August 1973;

80 81


c. The Law of Tax and Credit Promotion in favour published as Codification N. 2004-02, published
of the industries established in the Province of in the Supplement of Official Registry N. 315 of
Esmeraldas, published in Official Registry N. 16 April 2004.
130 of 14 August 1997; n. The Law of Duty Free Zones, published as
d. Law N. 35 of Agro Industrial y Tourism Codification N. 4, published in Official Registry
Development in the Province of Manabí, N. 562 of 11 April 2005.
published en the Supplement of Official Registry o. Chapter Two of Law N. 90 of the Assembly
N. 194 of 14 November 1997; and Part-Time Labour Contracting Regime,
e. Law N. 45 of Industrial Promotion for the published in the Supplement of Official Registry
Province of Bolivar, published in Official Registry N. 493 of 3 August 1990. In what is pertinent,
N. 218 of 18 December 1997; the norm for what this disposition repeals may be
f. Law N. 48 of Industrial and Agro Industrial incorporated in customs rules for the regulation
Promotion for the Province of Imbabura, of temporary entry and finished manufacture
published in Official Registry N. 223 of 26 considering the particular systems of assembly
December 1997; the are valid in the before mentioned laws.
g. Law N. 51 for the Promotion of Production of p. Stands repealed articles 3 and 5 of the Law of
Goods and Development of Fisheries Industry the Development of the Port of Manta, as well
in the Province of Chimborazo, published in as the article and numeral following article 3,
the Supplement to Official Registry N. 227 of 2 introduced by Law N. 28, published in Official
January 1998; Registry 231 of 1 December 2003. Stands
h. Law N. 65 for the Promotion of Industrial, Repealed as well the second insert of article
Artisan, and Tourism Development of the 1 of Interpretive Law N. 2006-51, published in
Province of Cañar, published in Official Registry Official Registry N. 344 of 29 August 2006.
N. 269 of 5 March 1998; q. The Organic Law of Customs.
i. Law N. 65 for the Promotion of Production r. The Law of Industrial Parks, published in Official
and Avoidance of Population Migration of Registry 137 of 1 November 2005 and its
the Province of Loja, published in the Official reforms.
Registry N. 1 of 12 August 1996;
j. Law N. 46 for Promotion and Guarantee of The dispositions of this Code and its revocations
Investment, published in Official Registry N. 219 enter into force from the date of promulgation en
of 19 December 1997; the Official Registry.
k. The Law of Foreign Commerce and Investment,
published in the Supplement of Official Registry Given and Signed in the seat of the National
N. 82 of 9 June 1997. Assembly, located in Metropolitan District of
l. Article 7 of the Law for Fisheries Promotion and Quito, Province of Pichincha, this sixteenth day of
Development, published in Official Registry N. December of 2010.
792 of 15 March 1979.
m. Article 15 of the Law of Agrarian Development, f.) Fernando Cordero Cueva, President.
f.) Dr. Francisco Vergara O., General Secretary.

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