WORLD TRADE
ORGANIZATIONG/AG/N/ECU/5
17 June 1998
(98-2446)
Committee on Agriculture
NOTIFICATION
The following notification concerning the administration of tariff quotas (Table MA:1) was
received from the delegation of Ecuador  on 29 April 1998.
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In annex to this notification the delegation of  Ecuador has supplied the following information:
- Annual quota volumes and tariffs for the period 1998-2001;- national legislation concerning the use and distribution of tariff quotas
(Interministerial Agreement No. 063 published in Official Journal No. 279 of
19 March 1998).G/AG/N/ECU/5
Page 2Table MA:1
MARKET ACCESS:  ECUADOR
REPORTING PERIOD:  1998
Implementation of market access opportunities:  Syst em of administration of tariff quota commitments
Description of  products Tariff item number(s) encompassed in product
descriptionDescription of import arrangement applicable
(from Section I-B (or I-A) of Part
I of the Schedule)(from Section I-B (or I-A) of Part I of the Schedule)
12 3
Whole turkeys, fresh or chilled 02072200 (a) Allocation of quotas to supplying countries:  None
Cuts and offal of fowls, frozen 02074100 (b) Allocation of licences:  (i) Quota import licences are allocated by the Ministry of A griculture and Livestock,
subject to the opinion of the Committee on Tariff Quotas.  (ii) Licences are auctioned through an auction houseappointed by the Committee.  (iii) Import licences are valid for three months, effective during the quota period to be
notified to WTO at the beginning of each year.
(c) Quotas are allocated in equal lots.
(d) (Legal reference).
Milk in powder, granules or other
solid forms, of a fat content, byweight, not exceeding 1.5%
Milk in powder, granules or other
solid forms, not containing added
sugar or other sweetening matter,
of a fat content, by weight,exceeding 1.5%
Other, containing 26% or more of
fat by weight of the dry product04021000
04022100
04022900(a) Allocation of quotas to supplying countries:  None
(b) Allocation of licences:  (i) Quota import licences are allocated by the Ministry of Agriculture and Livestock,
subject to the opinion of the Committee on Tariff Quotas.  (ii) Licences are auctioned through an auction house
appointed by the Committee.  (iii) Import licences are valid for three months, effective during the quota periodwhich is annual.
(c) Quotas are allocated in equal lots, and there is a single quota for these three dairy products.(d) (Legal reference).G/AG/N/ECU/5
Page 312 3
Soya oilcake
Oilcake of colza or rape seeds23040000
23064000(a) Allocation of quotas to supplying countries:  None
(b) Allocation of licences:  (i) Quota import licences are allocated by the Ministry of Agriculture and Livestock, subject
to the opinion of the Committee on Tariff Quotas.  (ii) 80% of licences are allocated to traditional importers and
20% to new importers on the basis of average imports over the last five years.  (iii) Import licences are valid for
three months, effective during the quota period to be notified to WTO at the beginning of each year.
(c) Not applicable.
(d) (Legal reference).
Wheat, all headings (other than
for animal consumption).
Barley.  Other, except for seedMalt, not roasted10010000
10030090
11071000(a) Allocation of quotas to supplying countries:  None
(b) Allocation of licences:  (i) Quota import licences are allocated by the Ministry of Agriculture and Livestock, subject
to the opinion of the Committee on Tariff Quotas.  (ii) 90% of licences are allocated to traditional importers and10% to new importers on the basis of average imports over the last five years.  (iii) Import licences are valid for
three months, effective during the quota period to be notified to WTO at the beginning of each year.
(c) Not applicable.
(d) (Legal reference).
Wheat starch
Maize (corn) starch
Glucose
Glucose containing fructose
Glucose syrup11081100
11081200
17023090
17024010
17024020(a) Allocation of quotas to supplying countries:  None
(b) Allocation of licences:  (i) Quota import licences are allocated by the Ministry of Agriculture and Livestock, subject
to the opinion of the Committee on Tariff Quotas.  (ii) Licences are auctioned through an auction house appointed
by the Committee.  (iii) Import licences are valid for three months, effective during the quota period which is annual
(c) Quotas are allocated in equal lots.
(d) (Legal reference)
Flint maize – other
Grain sorghum - other10059000
10070090(a) Allocation of quotas to supplying countries:  None
(b) Allocation of licences:  (i) Quota import licences are allocated by the Ministry of Agriculture and Livestock, subject
to the opinion of the Committee on Tariff Quotas.  (ii) 80% of licences are allocated to traditional importers and
20% to new importers on the basis of average imports over the last five years.  (iii) Import licences are valid forthree months, effective during the quota period to be notified to WTO at the beginning of each year.
(c) Not applicable.(d) (Legal reference).G/AG/N/ECU/5
Page 4ANNEX I
Annual Quota Volumes and Tariffs
Period 1998-2001
In Metric Tonnes and Percentages
Product Tariff heading Volume
1998Maximum tariff Volume
1999Maximum
tariffVolume
2000Maximum tariff Volume
2001Maximum
tariff
Whole turkeys, fresh or chilled 02072200 225 25% 233 25% 242 25% 250 25%
Poultry cuts and offal, frozen 02074100 2,250 40% 2,333 40% 2,417 40% 2,500 40%
Wheat (all headings) 10010000 435,000 19% 450,000 19% 465,000 19% 480,000 19%
Maize, other (flint) 10059000 17,839 25% 18,452 25% 19,065 25% 19,678 25%
Sorghum 10070090 11,150 25% 11,533 25% 11,917 25% 12,300 25%
Malt, not roasted* or
other barley (other than seed)11071000
1003009014,50020%-25%
25%15,00020%-25%
25%15,50020%-25%
25%16,00020%-25%
25%
Wheat starch 11081100 110 25% 113 25% 117 25% 120 25%
Maize (corn) starch 11081200 126 30% 129 30% 133 30% 137 30%
Soya oilcake 23040000 17,000 25% 17,000 25% 17,000 25% 17,000 25%
Colza seed oilcake 23064000 6,000 25% 6,000 25% 6,000 25% 6,000 25%
Milk in powder of tariff headings 04021000
04022100
040229001,074 45% 1,132 45% 1,190 45% 1,250 45%
Glucose 17023090 1,500 35% 1,500 35% 1,500 35% 1,500 35%
Glucose containing fructose 17024010 200 35% 200 35% 200 35% 200 35%
Glucose syrup 17024020 100 35% 100 35% 100 35% 100 35%
 *A 20 per cent tariff will be applied to "malt, not roasted", for the first 1,000 MT entering each year, and above that quanti ty a tariff of 25 per cent will be applied within the allocated quotas.
    The technical justification for the quota volumes and tariffs set out in this table is contained in the footnotes to sectio n I-B of Ecuador's schedules of commitments.G/AG/N/ECU/5
Page 5
ANNEX 2
INTERMINISTERIAL AGREEMENT No. 063
The Ministers of Foreign Trade, Industrialization and Fisheries,
Finance and Public Credit, and Agriculture and Livestock
CONSIDERING:
That during the process of accession by Ecuador to the World Trade Organization (WTO), the
country undertook to grant tariff quotas for various agricultural products, in order to guarantee
domestic market access opportunities to exporting country Members of WTO;
That in accordance with the provisions of GATT 1994, it is necessary to establish a system of
administration of tariff quotas based on transparent and fair mechanisms;
That by virtue of the Law on Foreign Trade and Investments (LEXI), the Ministry of Foreign
Trade, Industrialization and Fisheries is responsible for planning, directing, supervising and
implementing foreign trade policies, a function which it exercises in coordination with the public and
private sector entities making up the "Foreign Trade Sector";  and,
By virtue of the powers vested in them,
AGREE:
To issue the following directive for the distribution and use of the tariff quotas referred to in
Schedule CXXXIII-Ecua dor, Part I, Goods - most-favoured-nation tariff, Section I-B - Tariff Quotas
under the Protocol of Accession of Ecuador to the World Trade Organization (WTO), published in the
supplement to Official Journal ( Registro Oficial ) No. 977 of 28 June 1996.
Article 1
"Tariff quotas" means the volumes of agricultural  imports subject to the tariffs referred to in
Schedule CXXXIII-Ecua dor, Part I, Goods - most-favoured-nation tariff, Section I-B - Tariff Quotas
under the Protocol of Accession of Ecuador to the World Trade Organization (WTO).
The tariff quota mechanism shall enter into force when the tariff applied to a quota product
exceeds the maximum tariff established for the quota in question within a period referred to as the
"quota period".
"Quota period" means the months and times of the year in which quotas will be opened.Tariff quotas are valid for one year and the respective annual volumes are established
automatically in the schedule set out in the table c onstituting Annex I to this Agreement;  they are
therefore not cumulative.
Article 2
Tariff quotas shall be administered by the Committee on Tariff Quotas, in coordination with
the Ministry of Agriculture and Livestock, and the Ministries of Foreign Trade, Industrialization and
Fisheries, and Finance and Public Credit.G/AG/N/ECU/5
Page 6
The Committee on Tariff Quotas is set up for that purpose, with the following membership:
(a) The Under-Secretary for Sectoral Policy and Investment of the Ministry of
Agriculture and Livestock, who shall act as Chairman;
(b) the Under-Secretary for Foreign Trade and Integration of the Ministry of Foreign
Trade, Industrialization and Fisheries, or his representative;
(c) the Under-Secretary for Customs of the Ministry of Finance and Public Credit, or his
representative;
(d) a delegate of the trade associations concerned by the specific tariff quota to be
granted.
A technical expert to be appointed by the Committee on the proposal of its Chairman shall act
as Secretary of the Committee on Tariff Quotas.
Article 3
The Committee on Tariff Quotas shall have the following functions:
(a) To establish the conditions to be satisfied by natural or legal persons applying for the
grant of tariff quotas;
(b) to allocate tariff quotas on the basis of the terms of the annexed tables which form an
integral part of this Agreement under which specific treatment for each of the quota
products is detailed;
(c) to change the seasonal characteristics of the quota period on the basis of prior
justification and analysis;
(d) to monitor compliance with quota volumes for individual products by the method of
historical allocation defined in the annexed tables which form an integral part of this
Agreement;
(e) to define and modify the auction arrangemen ts for tariff quotas subject to the method
of allocation by auction, on the basis of prior justification and analysis;
(f) to redistribute the tariff quota volumes granted by the method of historical allocation,
which have not been put into effect within a time limit laid down by the Committee
on Tariff Quotas, so that they may be auctioned to new applicants within the quota
period;
(g) to authorize the Under-Secretariat for Sectoral Policy and Investment of the Ministry
of Agriculture and Livestock to issue quota import licences on the basis of the
conditions laid down in these regulations and in accordance with the decisions
adopted by the Committee on Tariff Quotas;
(h) such other functions as may be provided for in the Rules of Procedure to be approved
by the Committee on Tariff Quotas.G/AG/N/ECU/5
Page 7
Article 4
The Committee on Tariff Quotas shall meet upon convocation by its Chairman at the request
of one of its members, or in accordance with a pre-established timetable of meetings, the necessary
quorum being three of its members.  Decisions shall be adopted by a simple majority of votes.  In the
event of a tie, the person chairing the meeting shall have the casting vote.
Article 5
Natural or legal persons, trade associations and/or new importers who consider that they are
entitled to the allocation of a quota within the tariff quota system referred to in Article 1 of this
Agreement shall be required to submit the following documentation for approval by the Committee on
Tariff Quotas.
IN THE CASE OF NATURAL PERSONS:
(a) Full name, certificate of citizenship, taxpayer registration number and income tax
declaration for the last three years;
(b) business or private address;  and
(c) documentary evidence of the availability  of the necessary infrastructure for the
specific activity undertaken, based on presentation of deeds of ownership and/or
tenancy agreement, together with evidence, where possible, of experience in the
branch of activity concerned, with supporting documentation.
IN THE CASE OF LEGAL PERSONS:
(a) Articles of incorporation of the enterprise entered in the Trade Register and/or deed
of establishment, letter of appointment of the duly authorized legal representative,
evidence of compliance with obligations vis à vis the Companies Inspectorate, and
income tax declaration for the last three years;  and
(b) documentary evidence of the availability  of the necessary infrastructure for the
specific activity undertaken, based on presentation of deeds of ownership and/or a
business tenancy agreement, together with evidence, where possible, of experience in
the branch of activity concerned, with supporting documentation.
IN THE CASE OF NEW IMPORTERS:
(a) The Committee on Tariff Quotas is empowered to determine the quota period, taking
into account the interests of the sectors of production and taking care not to violate
principles enshrined in the rules of the World Trade Organization (WTO);
(b) the Committee on Tariff Quotas is empowered to allocate tariff quotas to new
importers, taking care not to violate the principles enshrined in the rules of the WorldTrade Organization.
Article 6
Tariff quotas which were used without any justification during the period of validity of the
import authorization shall be notified by the beneficiaries sufficiently well in advance for timelyreallocation.G/AG/N/ECU/5
Page 8
Article 7
Products subject to the Andean system of pr ice bands (SAFP), Decision 371 of the Board of
the Cartagena Agreement, under tariff quotas, shall be subject to the commitment that the total tariff
charges determined by the SAFP may not exceed the maximum bound WTO tariffs for such tariff
quotas.
Article 8
The specific treatment applied to each quota product is described in detail in the attached
tables which form an integral part of this Agr eement and which shall be notified to the Committee on
Agriculture of the World Trade Organization (WTO), following publication in the Official Journal by
the Ministry of Foreign Trade, Industrialization and Fisheries.
Article 9
For the fulfilment of the WTO quota commitment, the annual quota volumes corresponding to
each year from 1998 are specified in the Table at Annex I of this Agreement, on the basis ofSchedule CXXXIII-Ecua dor, Part I, Goods - most-favoured-nation tariff, Section I-B  - Tariff Quotas
under the Protocol of Accession of Ecuador to the World Trade Organization.
Final Article
This Agreement shall enter into force as from the date of its publication in the Official
Journal.
(Signed) Ing. Benigno Sotormayor
Minister of Foreign Trade,
Industrialization and Fisheries
(Signed) Ing. Alfredo Saltos Guale
Minister of Agriculture and Livestock
(Signed) Econ. Marco Flores
Minister of Finance and Public Credit
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