WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 26 
 
 
III. TRADE POLICIES BY MEASURE 
(1) MEASURES AFFECTING IMPORTS  
(i) Customs documentation and procedures 
1. The customs regime is based on the Organic Customs Law and its implementing regulation.1  
It is also governed by a number of decisions adopted by the members of the Andean Community, in 
particular on customs control2, intra-community customs coope ration and information exchange3, 
training for customs authorities4 and trade facilitation.5  Ecuador is a member of the World Customs 
Organization. 
2. The Foreign Trade and Investment Council (COMEXI) frames policy on import and export 
procedures, "in coordination with the Ministry of Finance and Public Credit".6  Implementation of 
customs policy is the responsibility of the Ecuadorian Customs Corporation (CAE).7  The CAE has 
been administered by the Armed Forces since 2003.  In its report to the nation on its second year in 
office, the Government stated that the Armed Forces had lent their support "with a view to 
modernizing and improving control in Customs, and so prevent it from being ... a source of corruption 
as in past decades".8 
3. All importers must register with the Central Bank.  Registration is automatic and is necessary 
once only, the sole requirement being a Taxpayer's Registration Number ( Registro Único de 
Contribuyentes ), to be obtained from the Internal Revenue Service.  The services of a customs broker 
must be enlisted to carry out customs formalities for goods amounting to more than US$2,000 and for 
imports entering under special customs regimes (section (iv)). 
4. The imported goods must be covered by the custom s declaration, which is sent to the customs 
office of destination through the SICE (Interactive Foreign Trade System)  computer system.  Under 
the Organic Customs Law, the customs declaratio n may be submitted from seven days before to 
15 working days after the arrival of the goods.  The following must be sent with the declaration:  the transport document (bill of lading, air waybill or consignment note), the commercial invoice, 
insurance policy and, where required, the certificate of origin. 
5. For imports with an f.o.b. value of more than  US$4,000, the customs declaration must also be 
accompanied by an approval document ( visto bueno ) from the Central Bank and an inspection 
certificate from a pre-shipment inspection company.
9  The visto bueno  is issued automatically by any 
of the banks authorized by the Central Bank, on presentation of the Single Importation Document 
(DUI), a copy of the purchase order and, depending on the product, a certificate of conformity with 
                                                      
1 Organic Customs Law, Codification 1, Official Journal/Suppl. 219, 26 November 2003;  General 
Regulation of the Organic Customs La w, Executive Decree No. 726, Offici al Journal 158, 7 September 2000. 
2 Andean Community Decision 574 of 12 December 2003. 
3 Andean Community Decision 478 of 8 June 2002. 
4 Andean Community Decision 573 of 12 December 2003. 
5 Andean Community Decision 477 of 8 June 2002. 
6 Foreign Trade and Investment Law (No. 12), Article 11, Official Journal/Suppl. 82, 9 June 1997. 
7 Organic Customs Law, Article 103. 
8 Report to the Nation by President Lucio Gutiérrez on the Government's Second Year in Office, 
available on-line at:  http://www.presidencia.g ov.ec/noticias.asp?noid=4189 [10 April 2005]. 
9 Organic Customs Law, Article 44. Ecuador WT/TPR/S/148/Rev.1 
 Page 27 
 
 
technical standards and the import licence (sections (vii) and (x)).  The visto bueno  can be sent via the 
Internet10, and the authorities have indicated that this  is used for the purpose of statistics. 
6. The Organic Customs Law requires imported goods  to be deposited in Customs-authorized 
warehouses pending completion of clearance formalities.11  Stored goods are subject to a charge, 
based on their weight (section v). 
7. Goods entering with a pre-shipment inspecti on certificate undergo physical inspection at 
destination if they are selected by the random check  system.  According to the Organic Customs Law 
General Regulations, the system works "on the basi s of risk profiles determined by the Customs 
Corporation".12  Physical inspection of goods at destina tion is also required in the following cases:  
where the importer disagrees with Customs' observations on the import declaration;  where the 
District Manager knows of or suspects an infringe ment of customs rules;   where pre-shipment 
verification is not a requirement;  at the importe r's request;  where the goods come from free zones, 
free ports, transit ports and "so-ca lled tax havens" in gene ral;  and "in any other instances that the 
Board of the Ecuadorian Custom s Corporation may determine".13  In addition, the Law on the Reform 
of Public Finances requires physical inspection at destination "in all instances where exemption from 
customs duties or zero tariff for VAT is granted." 
8. The bodies responsible for carrying out inspecti ons (documentary and physical) in Ecuador 
are the CAE and private inspection companies.  In 2003, 70 per cent of imports underwent physical 
inspection;  in 2004, the proportion increased to 73.4 per cent. 
9. Administrative claims against Customs must be  filed with the relevant Manager within 
20 days of the administrative action.  The Manager is  required to settle the claim within 20 days of its 
submission14, otherwise it will be deemed to have succeeded.  Applications for review are filed with 
the CAE General Manager.  Appeal against an admini strative decision lies to the District Tax Court.   
10. Customs clearance procedures are some of the sl owest in Latin America.  According to the 
authorities, in December 2004 clearance took an average of 11.6 days, of which approximately 3.5 were taken up in processing (from acceptance to clearan ce) the customs declaration.  Nearly six days 
(just over half of the total) elapsed  between the arrival of the carrier and the acceptance of the customs 
declaration.  The remaining 2.2 days were spent on payment of duties and removal of the goods from 
the customs precinct. 
11. The number of physical inspections carried out by the CAE explains in part why the 
procedures take so long.  In the context of this Review, the authorities pointed out that another cause 
of delay is the large number of entities invol ved in goods clearance (for example, transport 
companies, inspection companies, storage companie s and customs brokers), whose various tasks may 
require some considerable time.  They also poi nted out that the Organic Customs Law makes no 
provision for the CAE to apply penalties where times are too long. 
12. The Quito Chamber of Commerce has repeatedly co mplained about the "critical situation" of 
Customs in Ecuador.
15  The main problems identified by the members of the Quito Chamber of 
                                                      
10 See http://www.bce.fin.ec  
11 Organic Customs Law, Article 39. 
12 Organic Customs Law General Regulation, Article 56. 
13 Organic Customs Law, Article 46. 
14 Organic Customs Law, Article 76. 
15 Quito Chamber of Commerce (2004). WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 28 
 
 
Commerce include:  failure to use suitable importer risk  profiles;  failure to comply with documentary 
inspection as determined by the CAE's computerized random check system, which means that a high proportion of goods undergo physical inspection on arrival;  restrictions on entry and processing of 
customs declarations;  and the high turnover of the military personnel employed  in Customs, and their 
lack of technical knowledge and experience. 
13. In early 2005, Ecuador was implementing a customs modernization plan designed with 
support from the World Bank and the United States Agen cy for International Development (USAID).  
The plan aims to enhance the efficiency, eff ectiveness and transparency of CAE operations by 
stepping up automation of customs procedures and enhancing coordination between the CAE and the 
other institutions involved in the clearance process.  In addition, a system was being developed to 
determine the need for physical inspections on the b asis of importer risk profiles.  The modernization 
plan also aims to improve the CAE's internal auditing processes.
16 
14. Ecuador reported to the WTO that it has a pre-shipment inspection programme17, which is 
administered by the CAE and has been in operation since October 1994.  In early 2005, four inspection companies were authorized to inspect good s for importation by Ecuador in their country of 
origin:  Bureau Veritas, COTECNA, ITS and SGS.   The importer selects an inspection company for 
each shipment.   The CAE sets, in a resolution,  the fees payable by importers to inspection 
companies.
18  The rates of the fees range from 0.2 per cen t of the f.o.b. value of shipments amounting 
to more than US$1 million, and 0.7 per cent of the f.o.b. value of shipments amounting to less than 
US$100,000.  The minimum fee is US$180. 
15. Since January 1998, pre-shipment inspection has been mandatory for all goods with an f.o.b. 
value of more than US$4,000, regardless of their origin.19  Under the pre-shipment inspection 
programme, inspection companies are required to check  the quality, quantity, weight and price of the 
goods.  They must also determine their tariff headings, nature, origin and provenance.20   Pursuant to 
Executive Decree No. 1885, goods entering Ecuador under a maquila programme are exempt from the 
pre-shipment inspection requirement until 31 July 2005.21 
(ii) Customs valuation 
16. Customs valuation is governed by the WTO rules and by Decision 571 of the Commission of 
the Andean Community and its implementing regulation, set forth in Resolution 846.22  On acceding 
to the WTO, Ecuador availed itself of Article 20.1 of  the Agreement on Customs Valuation in order to 
delay implementation of the Agreement for five years from 21 January  1996.23   Ecuador has notified 
its customs valuation legislation to the WTO24, but has not submitted replies to the list of questions on 
customs valuation.25 
                                                      
16 World Bank (2004a), pp.43 et seq . 
17 WTO document G/PSI/N/1/Add.8, 28 September 1999. 
18 CAE Board Resolution No. 7-2004-R2 of 7 April 2004. 
19 Executive Decree No. 698 of 19 September 1997. 
20 CAE Board Resolution No. 7-2004-R2 of 7 April 2004. 
21 Executive Decree No. 1885, Offici al Journal 383, 22 July 2004. 
22 Andean Community Decision 571 of 12 Decembe r 2003; Andean Community General Secretariat, 
Resolution 846 of 6 August 2004. 
23 WTO document WT/Let/72, 11 April 1996. 
24 WTO documents G/VAL/N/1/ECU/1, 28 August 1995; and G/VAL/N/1/ECU/2 and Rev.1, 
1 March 1996. 
25 The list of questions is in WTO document G/VAL/5, 13 October 1995. Ecuador WT/TPR/S/148/Rev.1 
 Page 29 
 
 
17. In accordance with the Agreement's provisions  on special and differential treatment for 
developing country Members of the WTO, Ecuador decided to delay application of the computed 
value method until 21 January 2004 and to adopt  reservations on the application of certain 
disciplines.26 
18. The customs duties to be applied to "marker" products of the Andean price band system are 
calculated on the basis of the c.i.f. reference pric e set by the Andean Community General Secretariat 
(Chapter IV (1)(ii)).27  Otherwise, in accordance with Article 14 of the Organic Customs Law and 
Article 6 of the Decision 571, duties are determined on the basis of the c.i.f. value of the imported goods using the transaction value method.  Where the latter cannot be used as the basis for customs 
valuation, Decision 571 lays down five alternative me thods, to be used in the order prescribed by the 
Agreement on Customs Valuation.  The legislati on expressly forbids the use of minimum prices in 
assessing customs value.
28 
19. The CAE uses reference prices to evaluate the risk of imports being undervalued.  According 
to a USAID study, the reference prices are deri ved from the prices sent by pre-shipment inspection 
companies to the CAE's Valuation Department.  Th e Department adjusts the prices on the basis of 
information it obtains either on-line or by cont acting exporters or manufac turers directly.  The 
Department discards the lowest price and incorpor ates the remaining prices into its reference price 
database.29 
20. In order to clear customs, importers must pr esent an Andean Customs Valuation Declaration, 
on the basis of which the authorities will determine the value of the goods.  The CAE compares the 
declared value with the reference prices in its database.  Where there is "reasonable doubt" about the 
declared prices, the importer is so informed in wr iting and is given two options.  The first is to accept 
the CAE's decision regarding reasonable doubt, in which case the importer may withdraw the goods 
after payment of the duties due, calculated on the b asis of the highest reference price in the CAE 
database.30  In such cases, the importer retains the right to file a claim at a later stage.  The second 
option is to pay the duties due, calculated on the basi s of the declared value, and to submit a 30-day 
guarantee equal to 120 per cent of the difference be tween the duties calculated on the declared value 
and those determined by the customs authority.31  The importer may withdraw the goods upon 
presentation of the guarantee and has 10 working days within which to provide the customs authority 
with documentary evidence of the declared value.32  Upon expiry of the 10 days, Customs proceeds 
with dispute settlement. 
21. According to information supplied by the CAE,  between 19 April and 31 July 2004, 6.4 per 
cent of the customs declarations it received were  submitted to the reasonable doubt procedure.  Of 
                                                      
26 WTO document WT/Let/72, 11 April 1996. 
27 Andean Community Decision 371 of 26 November 1994.  
28 Andean Community General Secretariat Resolution 846, Article 45. 
29 USAID (undated). 
30 USAID (undated). 
31 Directive for Applying the Withdrawal of Goods w ith Guarantee, when the Declared Value of the 
Imports is Subject to the Reasonable Doubt Procedure, 25 August 2004. 
32 Directive for Applying the Withdrawal of Goods w ith Guarantee, when the Declared Value of the 
Imports is Subject to the Reasonable Doubt Procedure, 25 August 2004. WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 30 
 
 
these, some 83 per cent underwent adjustment, whic h yielded a 1.5 per cent increase in the CAE's 
total revenue for the period.33 
22. According to the USAID study, one of the main  problems in customs valuation is that the 
reference price database is used not  as a risk assessment tool but in  many instances as a substitute for 
the transaction value.  The study makes several recommendations, inter alia :  to develop and 
implement risk assessment measures and a post-entry aud it system;  to reduce the role of pre-shipment 
inspection companies in the valuation pro cess;  and to increase training for CAE staff.34 
23. In 2004, 169 administrative claims and 30 app lications for review were filed in connection 
with customs valuation. 
(iii) Rules of origin 
24. Ecuador has notified the WTO that it applies pref erential rules of origin within the Andean 
Community and LAIA.35  The authorities reported that Ecuador has no non-preferential rules of 
origin. 
25. The Andean rules of origin regime is set fo rth in Decisions 416 and 417 of the Commission of 
the Andean Community.36  The basic criteria for determining the origin of goods incorporating inputs 
from outside the Andean Community are change of tariff heading (four-digit HS) as a result of a 
production or transformation process, or else the re gional value content, expressed as a percentage 
derived from the ratio of the c.i.f value of non-originat ing materials to the f.o.b. value of the goods for 
export.  In Ecuador, regional value content must amount to at least 40 per cent of the f.o.b. value of the goods.  Ecuador (along with Bolivia) enjoys speci al treatment in this ar ea, the regional content 
requirement for exports of the other members of the Andean Community being 50 per cent. 
26. A limited number of products are subject to specific requirements of origin.  These are 
established by the Andean Community General Secretar iat, on its own initiative or at the request of a 
member country, for "products that so require".
37  They may be less stringent than the basic criteria 
for determining origin.  Specific requirements of origin currently apply in the automotive, chemicals and oilseeds sectors among others.  
27. Agreements concluded within LAIA  are either governed by LAIA's  general rules of origin, set 
forth in Resolution 252 of 4 August 1999, or have th eir own rules of origin.  The general LAIA rules 
follow the same basic principles for determining orig in as apply in the And ean Community.  In all 
Ecudador's LAIA partial-scope agre ements except the one with Mexico , the general rules apply, with 
additions in some cases. 
(iv) Tariffs 
28. Under the 1998 Constitution, authority for amendi ng the rates and nomencl ature of tariffs lies 
solely with the Executive
38, although it has been transferred in part to certain bodies of the Andean 
                                                      
33 CAE information available on-line at: http://www .aduana.gov.ec/contenido/detalleprensa.asp?art=11 
[10 April 2005]. 
34 USAID (undated). 
35 WTO documents G/RO/N/1, 9 May 1995, and G/RO/N/12, 1 October 1996. 
36 Andean Community Decisions 416 and 417 of 30 July 1997. 
37 Decision 417, Article 1. 
38 Political Constitution of the Republic of Ecuador, 1998, Article 257. Ecuador WT/TPR/S/148/Rev.1 
 Page 31 
 
 
Community.  As a member of the Andean Community , Ecuador is required, in theory, to align any 
changes in its tariff rates and nomenclature with am endments to the common external tariff – in force 
since 1995 – approved by the members of the Andean Community.  However, given the current status 
of the Andean integration process, in practice Ec uador and the other Community members apply the 
common external tariff with exceptions. 
29. Ecuador grants at least MFN treatme nt to all its trading partners. 
30. Between 1999 and 2003, averag e revenue from tariffs amounted  to US$335.5million, about 
9 per cent of total central Government revenue.  Between 1999 and 2003, the average effective tariff 
rate was 7.2 per cent.39 
(a) Structure and levels of MFN tariffs 
31. For the classification of goods, Ecuador uses the nomenclature common to the countries of the 
Andean Community known as NANDINA, whic h is based on the Harmonized Commodity 
Description and Coding System (HS).  Ecuador's nomenclature is based on the version of NANDINA 
that incorporates the third amendment of the Harmonized System.40 
32. At the beginning of 2005, Ecuador's tariff nomenclature comprised 6,949 10-digit lines 
(Table III.1).  All import tariffs are ad valorem  (Table III.2).  Under the Andean price band system, 
Ecuador applies variable tariff rates to certain ag ricultural products which rise or fall in accordance 
with international prices (Chapter IV (1)(ii)).  S easonal duties are not applied.  The simple average 
applied MFN tariff rate is 11.4 per cent, with a coeffi cient of variation of 0.6.  This average increases 
to 11.9 per cent if account is taken of the levy  Ecuador imposes on all imported goods, other than 
inputs of pharmaceuticals, to finance the Children's Development Fund.  In 1990, the average applied 
tariff rate was 32.9 per cent.41 
Table III.1  
Summary analysis of MFN tariff, January 2005a 
MFN  
Product description 
No. of lines Average 
(%) Range 
(%) Coefficient of 
variation Average 
bound 
tariff b 
(%) 
Total 6,949 11.4 0–85.5 0.6 21.0 
      
HS 01-24 978 16.7 0–85.5 0.5 26.5 
HS 25-97 5,971 10.6 0-35 0.6 20.1 
Table III.1 (cont'd) 
 
                                                      
39 The average effective tariff is the percentage deri ving from the tariff revenue/ total value of imported 
goods ratio. 
40 Andean Community Decision 507 of 22 June 2001 updating the NANDINA nomenclature.  As from 
1 January 2005, Decision 570 of 12 December 2003 on the Updating of the Common Customs Classification 
System of the Cartagena Agreement Member Countries (NANDIN A) will replace Decision 507.    According to 
the Andean Community General Secretariat, the new decision will make it easier for the Andean countries to coordinate positions in negotiating tariff reduction progra mmes and specific rules of or igin (General Secretariat 
of the Andean Community 2004, page 41). 
41 Arias Rivadeneira (undated). WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 32 
 
 
MFN  
Product description 
No. of lines Average 
(%) Range 
(%) Coefficient of 
variation Average 
bound 
tariff b 
(%) 
By WTO category      
Agricultural products 926 15.7 0–85.5 0.6 25.4 
  Animals and products of animal origin 107 17.4 0–85.5 0.5 29.0 
  Dairy products 34 34.4 5-72 0.7 42.8 
  Coffee and tea, cocoa, sugar, etc. 168 17.5 5-45 0.4 27.8 
  Cut flowers, plants 48 9.0 0-15 0.5 19.1 
  Fruit and vegetables 212 15.8 5-20 0.2 24.9 
  Cereals 33 21.5 0-45 0.7 28.5 
  Oilseeds, oils and fats and products thereof 97 15.1 0–38.7 0.5 27.4 
  Beverages and spirits 52 19.1 10-20 0.1 26.2 
  Tobacco 12 16.7 10-20 0.3 26.7 
  Other agricultural products n.e.s. 163 8.7 0-20 0.5 18.1 
  Non-agricultural products (including petroleum) 6,023 10.8 0-35 0.6 20.3 
  Non-agricultural products (excluding petroleum) 5,981 10.8 0-35 0.6 20.4 
    Fish and fishery products 141 18.3 5-20 0.2 28.3 
     Mineral products, preci ous stones and precious metals 374 9.4 0-20 0.6 19.6 
     Metals 694 9.1 0-20 0.5 20.9 
     Chemicals and photographic goods 1,405 7.0 0-20 0.6 10.8 
     Leather, rubber, footwear and travel goods 211 12.5 0-20 0.5 23.9 
     Wood, wood pulp, paper and furniture 329 12.4 0-20 0.4 23.4 
     Textiles and clothing 936 18.1 5-20 0.2 28.4 
     Transport equipment 217 10.7 0-35 0.8 22.2 
     Non-electrical machinery 722 7.4 0-20 0.6 19.7 
     Electrical machinery 405 10.0 0-20 0.6 22.2 
     Non-agricultural products n.e.s. 547 12.9 0-20 0.5 23.7 
  Petroleum 42 5.2 0-15 0.9 14.5 
By ISIC sectorc      
Agriculture and fishing 394 12.1 0-45 0.6 21.3 
Mining 112 5.3 0-15 0.3 15.3 
Manufacturing  6,442 11.5 0–85.5 0.6 21.1 
By HS Section      
  01  Live animals;  animal products 271 19.1 0–85.5 0.7 29.2 
  02  Vegetable products 369 13.5 0-45 0.5 22.9 
  03  Fats and oils 61 16.6 0-20 0.3 28.2 
  04  Prepared foodstuffs, etc.  277 18.7 5-45 0.3 28.5 
  05  Mineral products 209 5.2 0-15 0.5 15.3 
  06  Products of the chemical or allied industries 1,327 6.5 0-20 0.6 10.3 
  07  Plastic and rubber 294 11.6 0-20 0.5 18.8 
  08  Raw hides and skins 80 12.1 5-20 0.5 22.2 
  09  Wood and articles of wood 102 12.6 5-20 0.3 21.6 
  10  Pulp of wood, paper, etc. 204 11.6 0-20 0.5 23.9 
  11  Textiles and textile articles 922 17.9 5-20 0.2 28.2 
  12  Footwear, hats and other headgear 58 18.8 15-20 0.1 28.7 
  13  Articles of stone 160 12.9 5-20 0.3 24.7 
  14  Precious stones, etc. 57 12.2 5-20 0.4 22.6 
  15  Base metals and articles of base metal 675 9.5 0-20 0.5 21.4 
  16  Machinery and mechanical appliances 1,159 8.5 0-20 0.6 20.6 
  17  Transport equipment 229 10.7 0-35 0.8 22.2 
  18  Precision instruments 308 9.6 0-20 0.5 21.1 
  19  Arms and ammunition 28 18.2 10-20 0.2 28.0 
  20  Miscellaneous manufactured articles 152 18.4 5-20 0.2 28.4 
  21  Works of Art 7 20.0 20-20 0.0 .. 
Table III.1 (cont'd) 
 Ecuador WT/TPR/S/148/Rev.1 
 Page 33 
 
 
MFN  
Product description 
No. of lines Average 
(%) Range 
(%) Coefficient of 
variation Average 
bound 
tariff b 
(%) 
By stage of processing      
First stage of processing 809 10.3 0-45 0.7 20.3 
Semi-processed products  2,325 9.6 0-45 0.6 17.3 
Fully processed products  3,815 12.8 0–85.5 0.6 23.4 
.. Not available. 
a Excluding 18 tariff lines in Chapter 98, classifying goods impor ted by express mail which are subject to a 20 per cent duty.  For 
the 155 tariff items subject to the Andean price band system, the common external tariff rates, not the applied rates, were tak en 
into account.  
b The bindings are given in HS 92 and the applied rates in HS 2002;   consequently, there may be differences in the number of li nes 
included in the analysis.   
c ISIC (Rev.2), except fo r electricity (one line). 
Source:  WTO Secretariat estimates, based on data supplied by the Ecuadorian authorities.  
Table III.2 
MFN tariff  structure 
 2005 
1.  Total number of lines 6,949 
2.  Non- ad valorem  tariffs (% of tariff lines) 0 
3.  Non- ad valorem  tariffs with no AVEs (% of tariff lines) 0 
4.  Tariff quotas (% of tariff lines) 0.5 
5.  Duty-free tariff lines  (% of tariff lines) 3.2 
6.  Average lines above zero (%) 11.8 
7.  Domestic tariff  "peaks"  (%  of  tariff lines) a 0.7 
8.  International tariff  "peaks" (%  of  tariff lines)b 24.7 
9.  Bound tariff lines (% of tariff lines) 100 
a Domestic tariff peaks are defined as rates exceeding three times the overall simple average applied rate. 
b International tariff peaks are defi ned as rates exceeding 15 per cent. 
Source : WTO Secretariat calculations, based on data provided by the authorities. 
 
33. The agricultural sector (WTO definition) has the highest levels of tariff protection, with an 
average applied MFN rate of 15.7 per cent.  Th e average for non-agricultural sectors (including 
petroleum), is 10.8 per cent.  Using the ISIC (Rev . 2) definition, the average applied MFN rates are 
12.1 per cent for agriculture including hunting, fore stry and fishing, 11.5 per cent for manufacturing 
and 5.3 per cent for mining and quarrying. 
34. The most frequent tariff rate is 5 per cent, and applies to a little over one third of tariff lines 
(Chart III.1).  About three per cent of tariff lines are duty free.  A rate of 35 per cent applies to 
14 tariff lines corresponding to motor vehicles and mo tor vehicle parts.  Rates of above 35 per cent 
apply to 32 tariff lines corresponding to out-of-quot a imports of certain agricultural products 
(Chapter IV (1)(ii)).  Twenty-five tariff lines are subject to a rate of 3 per cent. 
35. The tariff displays positive escalation from raw ma terials to semi-finished products to finished 
products in all branches of manufacturing excep t non-metallic mineral products (Chart III.2). 
36. The tariff is based on the Andean Community 's common external tariff, which has the 
following four bands:  5, 10, 15 and 20 per cent.  Ecuador may defer applying the common external 
tariff to the tariff lines listed in Annexes 2, 3 and 4 of Andean Community Decision 465.  In 
October 2002, Ecuador and the other members of the Andean Community agreed on a common WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 34 
 
 
external tariff for 62 per cent of the tariff universe.42  However, the entry into force of the common 
external tariff has been postponed repeatedly.  At the beginning of 2005, the date scheduled for it to 
take effect was 10 May 2005.43 
(0,7%)(35,5%)
(3,2%)(18,3%) (18,5%)(23,8%)
(0,0%)
05001.0001.5002.0002.5003.000
Franquicia
arancelaria>0-5 >5-10 >10-15 >15-20 >20-30 >300102030405060708090100Gráfico III.1
Distribución de frecuencias de los tipos arancelarios NMF, 2005
Número de líneas arancelariasaPorcentaje
Porcentaje acumulativo
Número de líneas (% del total)
El número de líneas ad valorem es de 6.949.
Cálculos de la Secretaría de la OMC, basados en datos facilitados por las autoridades de Ecuador.a
Fuente:
 
                                                      
42 Andean Community Decision 535 of 14 October 2002. 
43 Andean Community Decision 580 of 4 May 2004. Chart III.1 
Frequency distribution of MFN tariff rates, 2005 
Number of tariff linesa Percenta ge
Cumulative percent 
Number of lines (% of total ) 
Duty free 
The total number of ad valorem  lines is 6,949. 
Source:  WTO Secretariat calculations, based on data provided by the Ecuadorian authorities. Ecuador WT/TPR/S/148/Rev.1 
 Page 35 
 
 
0,05,010,015,020,025,0
Materias primas Productos semielaborados Productos totalmente acabadosGráfico III.2
Progresividad arancelaria de los productos ma nufacturados por categorías de la CIIU al 
nivel de 2 dígitos, 2005
Porcentaje
Fuente:  Estimaciones de la Secretaría de la OMC, basada s en datos facilitados por las autoridades del Ecuador.Prod. 
alimenticiosTextiles, 
prendas de 
vestirIndustrias de 
la maderaPapel, 
imprentaProd. 
químicos, 
plásticosProd. 
mineralesIndustrias 
metálicas 
básicasProductos 
fabricados 
en metal NO APLICABLE
 
 
(b) Tariff bindings 
37. The bindings of Ecuador's concessions are c ontained in Schedule CXXXIII appended to the 
General Agreement on Tariffs and Trade 1994.  The Schedule is based on HS 92. 
38. Ecuador bound its entire tariff upon acceding to the WTO.  Approximately 98 per cent of its 
tariff lines are bound at 30 per cent or less.  The av erage bound rate is 21 per cent, compared to an 
average applied MFN rate of 11.2 per cent. 
39. Duties on agricultural products (WTO defin ition) were bound at rates ranging from 5 to 
85.5 per cent.  The lowest bound rates mostly pertain to seeds, and the highest to cuts and offals of 
certain types of poultry.  Duties on non-agricultural products are bound at levels ranging from 5 to 40 
per cent, the lowest applying mainly to ch emicals and the highest to motor vehicles. 
40. Of the tariff lines in the Schedule that are strictly comparable to HS 2002, the WTO 
Secretariat identified four 10-digit lines for which the applied rates at the beginning of 2005 could 
have been above the bound rates (Table III.3).  Fo r 585 tariff lines, the applied rates are the same as 
the bound rates.  If certain charges applied solely to imports are taken into account, including the 
redeemable quota and the contribution to the Childre n's Development Fund, the rates actually applied 
to these products would be higher than the bound rates. 
 Chart III.2 
Tariff escalation by ISIC 2-digit industry, 2005 
Percenta ge 
Raw materials Semi- processed Fully processed 
Food, 
beverages  Textiles, 
apparel Wood  
products Paper, 
printing Chemicals, 
plastics Mineral 
products Basic metal 
 products Fabricated 
metal 
products NOT APPLICABLE 
Source:   WTO Secretariat calculations, based on da ta provided by the Ecuadorian authorities . WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 36 
 
 
Table III.3 
Products for which the applied MFN ta riff rates exceed the bound rates, 2005a 
HS Code  Description of product Applied MFN 
rate (%) Bound tariff rate 
(%) 
01.02.90.90.00 Live bovine animal s;  other (other than pure-bred breeding animals);  
other (other than for fighting) 10 5 
38.09.93.00.00 Finishing agents, dye carriers to accelerate the dying or fixing of dye 
stuffs and other products and prepara tions (e.g. dressings and mordants), 
of a kind used in the textile, pape r, leather or like industries, not 
elsewhere specified or included;  ot her (other than with a basis of 
amylaceous substances);  of a kind used in the leather or like industries 10 5 
87.02.10.10.90 Motor vehicles for the transport of ten or more persons, including the 
driver;  with compression-ignition internal combustion piston engine 
(diesel or semi-diesel);  for the transport of not more than sixteen persons, including the driver;  other (other than CKD) 35 20 
87.02.90.91.90 Motor vehicles for the transport of ten or more persons, including the 
conductor;  other (other than w ith compression-ignition internal 
combustion (piston) engine diesel or se mi diesel);  for the transport of not 
more than sixteen persons, including the driver;  other (other than CKD). 35 20 
a For lines strictly comparable  between HS 92 and HS 2002. 
Source: WTO Secretariat, on the basis of information supplied by the authorities. 
(c) Tariff quotas 
41. Under the commitment on minimum access opport unities contained in the WTO Agreement 
on Agriculture, Ecuador is entitled to operate tariff quot as in respect of 17 four-, six- or eight-digit 
lines (Chapter VI (1)(i)). 
(d) Tariff concessions 
42. Besides the conditional refund, maquila and free zone regimes (section (2)(iv)), Ecuador has a 
number of special customs regimes that offer tari ff concessions to importers (Table III.4).  They 
consist in suspending payment of duties and other taxes incurred on imports of goods under certain 
conditions.   
Table III.4 
Tariff concessions granted under sp ecial customs regimes, December 2004 
Regime  Requirements for suspension of duties  Maximum stay of goods 
imported into Ecuador Basis in law 
Temporary import 
with 
re-exportation in the same state The goods must be re-exported in the same 
state, except for normal depreciation due to 
use  Generally up to 180 days, 
extendable in some cases Article 58, Organic Customs 
Law (LOA);  Articles 75-83 of 
the LOA General Regulations 
Temporary 
importation for 
inward processing  The goods must be re-exported after 
transformation, processing or repair Up to 90 days, extendable for a 
further 90 days Article 59, LOA;  Articles 84-
87 of the LOA General 
Regulations 
Customs storage Storage in authorized premises;  the goods 
must be re-exported in the same state 
(commercial customs storage) or transformed (industrial customs storage) Up to six months, extendable 
for a further six months Article 60, LOA;  Articles 88-
102 of the LOA General 
Regulations 
Free and special 
storage Storage of imported goods in international 
ports and airports;  the goods must be 
intended for sale to outgoing passengers Up to one year Article 61, LOA;  Articles 103-
108 of the LOA General 
Regulations 
Table III.4 (cont'd) 
 
 Ecuador WT/TPR/S/148/Rev.1 
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Regime  Requirements for suspension of duties  Maximum stay of goods 
imported into Ecuador Basis in law 
Duty-free 
replacement Importation of goods to  replace previously 
imported "identical or equivalent goods";  
the replaced goods must be exported after transformation or use for the production or 
packaging of goods for export  Up to six months for the goods 
to be replaced Article 65, LOA;  Articles 128 
and 129 of the LOA General 
Regulations  
International 
Trade Fairs Imports for exhibition in previously 
authorized premises or for tasting, promotion 
and decoration For the duration of the event 
plus 15 days Article 68, LOA;  Articles 135 
and 136 of the LOA General 
Regulations  
Source: WTO Secretariat. 
(e) Tariff preferences 
43. Ecuador grants duty-free treatment to all impor ts from Bolivia, Colombia and Venezuela, 
provided that they comply with the Andean Comm unity's origin requirements (section (iii)).  By 
January 2004, Ecuador had eliminated duties on 99.5 per cent of all tariff items for imports 
originating in Peru.  Ecuador also grants prefer ential treatment for imports from countries with which 
it has LAIA agreements under (Table A III.1). 
(v) Other charges 
44. In addition to tariff duties, imports are subject to charges for storage and in some cases for 
other customs services.  They are also subject to:  value added tax (VAT), the special consumption tax 
(ICE), the "redeemable quota" and a contribution to the Children's Development Fund.  Domestic 
products are subject to VAT and the ICE but not to  the redeemable quota or the contribution to the 
Children's Development Fund.  The redeemable quota applies to all imports except those originating 
in the Andean Community. 
(a) Customs charges 
45. Ecuador applies a number of charges for customs services, including storage.44  A storage 
charge applies to goods stored in Customs-au thorized warehouses.  The Organic Customs Law 
requires imported goods to be stored in such warehouses pending completion of clearance 
formalities.45  Storage charges are specific and are based on  the weight of the goods.  Airport storage 
rates range from US$7 for consignments of under 50kg. to US$750 for consignments of over 
40 tonnes for seven days (from the eighth day ther e is a daily surcharge of US$0.005 per).  For 
storage in ports, the charge for a 40ft container stored from 11 to 20 days is US$5.26 (US$2.63 for a 
20ft container).46 
46. A laboratory analysis charge applies when the cu stoms authority deems that goods need to be 
analysed in order to establish their tariff classification.   The charge is equal to the fee of the laboratory 
conducting the analysis. 
47. Clearance of goods under the special customs regimes (other than the industrial customs 
storage regime) is subject to a customs control charge of US$40.47 
                                                      
44 Resolution No. 18-2002-R8, Official Journal 729, 20 December 2002. 
45 Organic Customs Law, Article 39. 
46 CAE Board Resolution No. 12-2004-R1. 
47 CAE Board Resolution No. 18-2002-R8, Of ficial Journal 729, 20 December 2002. WT/TPR/S/148/Rev.1 Trade Policy Review 
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(b) Redeemable quota 
48. The redeemable quota applies to imports fro m outside the Andean Community.  The amount 
of the quota is equal to 0.025 per cent of the f.o.b. value of the imports, but may not be less than US$5 per consignment.
48  Once they have accumulated US$500 in paid up redeemable quotas, importers 
obtain a certificate ( Certificado de Aportación ) made out in that amount from the Export and 
Investment Promotion Corporation (CORPEI).  The certificates can be cashed in for their nominal value after 10 years.  The proceeds from the invest ment of redeemable quotas are used to part-finance 
CORPEI's activities (section (2)(v)).
49  Annual revenue from rede emable quotas on imports and 
exports amounts to US$4.5 million. 
49. In January 2002, COMEXI issued Resolution 129 reducing to zero the redeemable quota on 
all imports from Andean Community member countries.  It did so because of a complaint filed by the Andean Community Secretariat with the Andean Court of Justice, in which the Court found that "the 
mandatory quota, imposed by the Republic of Ec uador, being established on the basis of the f.o.b. 
value of imports rather than in exchange for services rendered, constitutes a charge ( gravámen ) for the 
purposes of the Cartagena Agreement Liberaliza tion Programme ... and amounts to an objective 
breach of obligations deriving from the Andean legal system".
50 
(c) Contribution to the Children's Development Fund 
50. In referring to the redeemable quota, the aut horities stressed CORPEI's importance to export 
and investment promotion.  In their view, the quota is not a gravamen , and they pointed out that 
although they apply the Court's decision, they disagree with it on the grounds that this exception 
applies solely within the context of the advantag es accorded to members of a regional integration 
system notified to the WTO under Article XXIV of the GATT. 
51. The amount of the contribution to the Children's Development Fund is equal to 0.5 per cent of 
the c.i.f. value of imports, regardless of their origin.51  Inputs for pharmaceuticals for human and 
veterinary use are exempt.  In 2004, revenue fro m contributions to the Children's Development Fund 
amounted to US$40.8 million. 
(d) Indirect taxes 
52. In 2003, tax revenue from VAT and the ICE am ounted to US$1,764 million, about 55 per cent 
of non-petroleum revenue and 37 per cent of total re venue.  VAT is by far the largest source of tax 
revenue. 
Value Added Tax (VAT) 
 53. VAT is charged on the transfer and importation of moveable goods and services at each stage 
of marketing, and Ecuador applies the destination principle.
52  There is no VAT on imported services 
provided "occasionally" in Ecuador and invoiced outside Ecuador.53  The rate of VAT is 12 per cent 
of the assessment base – usually the sales price less  ordinary customer discounts and rebates, the 
                                                      
48 Foreign Trade and Investment Law, Article 22. 
49 Foreign Trade and Investment Law, Article 22. 
50 Acción de Incumplimiento [complaint] 19-AI-99, 2 June 2000.  
51 Law No. 4, Official Journal 122, 3 February 1997. 
52 Internal Taxation Law, Article 51. 
53 Regulation Implementing the Internal Taxation Law, Article 114. Ecuador WT/TPR/S/148/Rev.1 
 Page 39 
 
 
value of goods and packaging returned by the customer  and, in the case of hire-purchase, interest and 
insurance premiums.  The assessment base for imported products is the c.i.f. value plus duties and any 
other tax, charge, surcharge or expenditure stated  in the import declaration and other relevant 
documents, including the ICE. 
54. The rate for export goods is zero.  Consequent ly, exporters pay no VAT and may claim back 
from the Internal Revenue Service the VAT paid on inputs (including services) for the manufacture of 
goods for export.54 
55. The import and domestic sale of certain goods and services are exempt from VAT (Box III.1).  
Although the regime applying to these goods and services is referred to as "zero rate" in Ecuador's tax 
legislation, in practice it is not a "zero rate" but  an "exemption" regime, since the producers of the 
goods and services are not entitled to deduct the valu e-added or to claim it back from the State. 
56. Under the Internal Taxation Law, raw, past eurized, homogenized and powdered milk and 
canned tuna are exempt from VAT, but only if they are of domestic origin.55 
Special Consumption Tax (ICE) 
57. The ICE is a specific tax applying to the c onsumption of certain products, whether domestic 
or imported (Table III.5).56  Exports are exempt from the ICE.  ICE rates are ad valorem  and vary 
according to the product.  For domestic products, the assessment base is the ex-factory price plus a 
"notional" margin for marketing of 25 per cent.  For imported products, the assessment base is the ex-
customs value plus the 25 per cent notional margin .  The assessment base may not be lower than the 
retail price set by the manufacturer less VAT and the ICE.  The retail price of products subject to the 
ICE must be marked on product labels. 
Box III.1:  Goods and services exempt from VAT 
  
- Unprocessed, untransformed and untreated foodstuffs, and the cooling, ch illing and freezing 
 services needed for their preservation; 
- mother's milk, and protein substitutes for infants; 
- bread, sugar, unrefined cane sugar (panela), salt, butter, margarine, oats, cornflour, noodles, 
 flour for human consumption, scad, sardine, trout, and edible oils other than olive oil; 
- certified seeds, bulbs, live plants, cuttings and roots; 
- fishmeal, balanced foods, sweetened preparations  of a kind used in animal feedings, and other 
 preparation of a kind us ed in animal feeding; 
- fertilizers, insecticides, pesticides, fungicides, he rbicides, plant oil used against black sigatoka, anti-
parasite and veterinary products, and inputs therefor; 
- wheeled tractors of up to 200 horsepower, ploughs, harrows, grippers, pourers, harvesters, 
 seeders, grass cutters, portable fumigation pumps,  sprinklers and sprayers for irrigation equipment; 
- medicines and drugs for human use (including inputs  therefor), in accordan ce with the yearly lists 
published by the Ministry of Public Health; 
- packaging and labels for the manufacture of medicines for human or veterinary use; 
Box III.1 (cont'd)  
                                                      
54 Internal Taxation Law, Article 69A. 
55 Internal Taxation Law, Article 55. 
56 Internal Taxation Law, Title Three. WT/TPR/S/148/Rev.1 Trade Policy Review 
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- bond paper and newsprint paper, newspapers, magazines, books and supplementary material of a kind 
sold with books; 
- river, maritime and land transport of passengers and cargo and international air transport of 
 cargo; 
- health, education, religious, funeral and book printing services; 
- public electricity, drinking water, sewage and waste collection services; 
- State-supplied administrative services; 
- public entertainment; 
- financial and stock exchange services; 
- certain services provided by graduate professionals for an amount of up to 10 million sucres per case 
undertaken; 
- use of roads; 
- lottery of the Junta de Beneficencia de Guayaquil y Fe y Alegría ;  
- aerial spraying services; 
- craft-related services;  and  
- exported services. 
Source:  Internal Taxation Law  
 
 
Table III.5 
ICE rates by product, December 2004 
Product  No. of 10-digit items subject to the ICE 
(with corresponding tariff heading) Rate (%) 
Cigarettes 
 Light 
 Dark  
1 (2402) 
1 (2402)  
77,25 
18,54 
Beer 1 (2203) 30,9 
Aerated beverages 1 (2201) 
1 (2202) 10,3 
Alcohol and alcoholic products other than beer 5 (2204) 
2 (2205) 1 (2206) 
2 (2207) 
16 (2208) 26,78 
Motor vehicles for the land transport of goods up to 
3.5 tonnes 1 (8702) 
9 (8703) 
4 (8704) 7 (8705) 
6 (8711) 5,15 
Aeroplanes, helicopters, water scooters, motor-tricycles 
and -quadricycles, yachts and recreational craft 1 (8703) 
7 (8802) 
1 (8901) 
4 (8903) 10,3 
Telecommunication and radio services n.a. 15,0 
n.a. Not applicable 
 
Source :  WTO Secretariat, on the basis of in formation supplied by the authorities. 
 
(vi) Prohibitions 
58. Ecuador prohibits the importation of a sma ll number of products, listed in COMEXI 
Resolutions 182 and 184.57  Most of these prohibitions are maintained in order to protect the 
                                                      
57 COMEXI Resolution 182, Official Journal 57, 8 Ap ril 2003;  and COMEXI Resolution 184, Official 
Journal 57, 8 April 2003. Ecuador WT/TPR/S/148/Rev.1 
 Page 41 
 
 
environment and health.  The banned products include:  worn clothing and other worn articles of tariff 
heading HS 6309;  used tyres of heading HS 4012;  vehicles and used parts thereof of HS Chapter 87, 
with some exceptions;  used engines of headings HS 8407 and 8408 with some exceptions;  and used 
parts of heading HS 8409, except for certain rema nufactured parts.  All these import prohibitions 
apply regardless of the origin of the goods. 
(vii) Other restrictions and licensing 
59. In order to import agricultural machinery and u sed or remanufactured parts thereof of tariff 
headings HS 8429, 8430, 8431, 8432 and 8433 and tariff items HS 8701.1000, 8701.3000 and 8701.9000, a permit must be obtained from COME XI.  COMEXI sets "import quotas" for these 
products "on the basis of specific needs and after examining substantiated applications".
58  
Applications to COMEXI must be accompanied by a certificate from a pre-shipment inspection company attesting that the equipment "is in perfect working order". 
60. Ecuador has an import licensing regime, which, at  the end of 2004, applied to 1,386 10-digit 
tariff items (Chart III.3).  The regime was established by COMEXI Resolution 183
59 and has not been 
notified to the WTO.  Pursuant to the WTO Ag reement on Import Licensing Procedures, Ecuador had 
notified its previous licensing system, which remain ed in effect until May 2003, and answered the 
questionnaire on import licensing procedures.60 
Gráfico III.3
Productos sujetos a licencias de importación, diciembre de 2004
Porcentaje del total
Fuente :  Secretaría de la OMC, en base a datos proporcionados por las autoridades.Prod. químicos
39,9%
Prod. vegetales
23,3%Preparaciones alimenticias 
17,7%Prod. animales
10,5%Grasas y aceites
2,5%Armas y municiones
1,7%Vehículos
1,2%Otros
3,2%
Total: 1.386 líneasChart III.3 
Products subject to import licensing, December 2004 
Percentage of total 
Food preparations 
17.7% Animal products 
10.5% Fats & Oils 
2.5% Arms & Ammunition 
1.7% Vehicles 
1.2% Other 3.2% 
Chemicals 
39.9% 
Plant products 
23.3% 
Total: 1,386 lines 
Source:   WTO Secretariat, on the basis of data supplied by the authorities. 
 
                                                      
58 Executive Decree No. 3497, Article 40, Official Journal 744, 14 January 2003. 
59 COMEXI Resolution 193, Official Journal/Suppl. 6, 5 May 2003. 
60 WTO documents G/LIC/N/1/ECU/ 1 and G/LIC/N/3/ECU/2, 20 December 2002;  and G/LIC/N/3/ 
ECU/1/Add.1-G/LIC/Q/ECU/2, 17 October 2002. WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 42 
 
 
61. Through its licensing regime, Ecuador seeks "to secure compliance" with the import 
provisions of various laws, which are li sted in Annex IV to Resolution 183.61  Licenses are intended 
in particular to ensure that certain imported produc ts carry no risk to human, animal and plant life and 
health;  imported narcotics and ps ychotropic substances are used for lawful purposes;  imports of arms 
and explosives for civilian use do not become a th reat to the peace and public safety;  imported 
vehicles are not so heavy as to damage public highways;  imported electrical plant is compatible with the national grid;  and imported telecommuni cation equipment is compatible with the 
telecommunication networks. 
62. Annex IV to Resolution 183 states that licences are used for limiting the quantity of imports 
of narcotics and psychotropic substances and of arms, ammunition and explosives.  The volumes of 
quotas for narcotics and psychotropic substances are determined on a quarterly or semi-annual basis, and licenses are awarded on the strength of historical  consumption.  Imports of arms, ammunition and 
explosives must not exceed "the quantities need ed to maintain the peace and public safety".
62  There 
are no restrictions as to the time of year at whic h licence applications may be filed, other than for 
certain agricultural products (Chapter IV (1)(ii)).   Licensing applies whatever the origin of the 
products. 
63. No licence is required for imports entering unde r a special customs regime (section (iv) and 
(2)(iv)), except in the case of hazardous wastes, ag ricultural products, and narcotics and psychotropic 
substances.63 
64. Import licences are approved by various bodies, depending on the product (Table AIII.2).  For 
the most part, approval needs to be obtained fro m only one administrative body; however, approval 
from two administrative bodies is required for 113 ta riff items.  Importers carry out licence formalities 
electronically through the Central Bank's Internet website64 without having to apply to other 
administrative bodies.  COMEXI Resolution 299 requires the Central Bank to post ongoing import licensing formalities on its Internet webpage. 
65. Time-limits for licence processing and licence validity depend on the issuing body.  Annex IV 
to Resolution 183 states that the National Council for the Control of Narcotic and Psychotropic 
Substances (CONSEP) takes between five and eight days to process licences and the Ministry of 
Public Works, 72 hours.  Licences issued by CONSEP, the Armed Forces Joint Command and the 
Ministry of Public Works are valid for 90 days, whereas the Ecuadorian Atomic Energy Commission issues licences for four years.  The WTO Secretariat had no further information about processing 
times or the periods of validity of licences issued by other administrative bodies. 
66. Licences may not be refused on grounds "not envisaged" in the laws on which they are 
based.
65  The import licence application form asks for the following information:  description of the 
goods, quantity and value, country of  origin, place of shipment, des tination, supplier or exporter, 
transport route and the applicant's signature.  Anyone may apply for a licence, but to import certain 
products including narcotic and ps ychotropic substances, radioactive materials, pesticides, and arms, 
ammunition and explosives, importers  must first register with the administrative body issuing the 
licence.  The WTO Secretariat had no information on the proportion of licence applications approved 
in recent years. 
                                                      
61 COMEXI Resolution 183, Article 1. 
62 COMEXI Resolution 183, Annex IV. 
63 COMEXI Resolution 305, Official Journal 543, 14 March 2005. 
64 COMEXI Resolution 299, Official Journal 508, 20 January 2005. 
65 COMEXI Resolution 183, Article 1. Ecuador WT/TPR/S/148/Rev.1 
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67. In March 2004, the Andean Community General Secretariat issued Resolution 802 following 
complaints filed by two members of the Andean Community against Ecuador's licensing regime.  The 
Andean Community General Secretariat found that  Ecuador's prior authorization or import licence 
"constitutes a requirement that is additional to and distinct from the documentation needed for 
customs purposes [and that] in the case of agricultu ral products, the prior authorization or import 
licence is a requirement additional to and distinct from the phytosanitary import permit."  On the trade 
effects of the regime, the Andean Community General Secretariat said that "the prior authorization or 
import licence [is] an administrative requirement or measure involving the completion of formalities 
that affect the import process, obstructing it and making it more cumbersome", and that "the 
requirement for prior authorization or an import li cence has in some cases had the effect of preventing 
the importation of agricultural products origin ating in Member countries [of the Andean 
Community]." 
68. In early 2005, COMEXI issued Resolution 297 , which eliminated 127 tariff items from the 
list of products subject to import licensing.66  COMEXI decided as well to "pursue the process of 
reform under COMEXI Resolution 183, pursuant to the provisions of the World Trade Organization 
and the Cartagena Agreement, with active particip ation by the sectors of production represented in the 
Foreign Trade and Investment Council".67 
(viii) Anti-dumping and countervailing measures 
69. Since its accession to the WTO in 1996, Ecuador has adopted no countervailing duty 
measures or conducted any investiga tions in this area.  It has not  submitted a semi-annual report on 
such actions to the WTO since 1999.68  Since 1991, the Andean Community General Secretariat has 
initiated three subsidy investigati ons.  None of them led to the imposition of countervailing duties.69 
70. Since 1996, Ecuador has notified to the WTO the initiation of only one anti-dumping 
investigation.  Initiated in Februa ry 1998, the investigation resulted in the application of provisional 
and definitive duties on imports of cement originat ing in Mexico.  On account of this measure, 
Mexico requested WTO consultations (Chapter II (3)(i)).  The Ecuadorian authorities reported that 
following the consultations, Ecuador decided to terminate the measure.  Ecuador has submitted no 
semi-annual report on anti-dumping measures since 2000.70 
71. Since 1991, the Andean Community General Secretariat has initia ted 21 anti-dumping 
investigations, 17 of which concerned intra-community  trade.  Two others c oncerned imports of iron 
and steel products from non-Member countries of the WTO;  both gave rise to the adoption of 
definitive measures. 
72. In the two remaining investigations, (biorien ted polypropylene film from the United States 
and 70 per cent aqueous sorbitol from France) the Andean Community General Secretariat found in 
favour of the imposition of duties.  According to  the General Secretariat, the duties "should be 
implemented once the resolutions to apply them ha ve been notified by the Members [of the Andean 
Community] to the relevant WTO body."71  In October 2004, COMEXI decided to apply 
anti-dumping duties in an amount of US$70 per tonne to imports of aqueous sorbitol, 70 per cent 
                                                      
66 COMEXI Resolution 297, Article 1, Official Journal 507, 19 January 2005. 
67 COMEXI Resolution 297, Article 2. 
68 WTO document G/SCM/N/47/Add.1/Rev.2, 20 October 1999. 
69 General Secretariat of the And ean Community (2004b), p. 60. 
70 The latest report appears in WTO document G/ADP/N/59/ECU, 13 April 2000. 
71 General Secretariat of the And ean Community (2004b), page 58. WT/TPR/S/148/Rev.1 Trade Policy Review 
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solution (HS 2905.4400 and 3824.6000);  pursuan t to Andean Community General Secretariat 
Resolution 740.72 
73. The legal framework governing anti-dumping a nd countervailing measur es consists of the 
relevant provisions of the WTO, the Foreign Tr ade and Investment Law, Executive Decree No. 349773 
and Andean Community Decisions 283, 456 and 457.74  Ecuador has submitted a number of 
notifications on its anti-dumping and counterva iling legislation, the most recent in 2000.75  It has not 
responded to questions from two Members concerning its latest notification76,  which refer to several 
aspects of the legislation, including comparison between normal value and export price, cumulative 
assessment of imports from more than one country, de termination of the existence of injury, initiation 
and duration of investigations, verification vis its, evidence and information requested during an 
investigation, best available information, im position and collection of duties, public notice and 
explanation of determinations, mutually agreed solutions, judicial review, duration of measures, 
investigations regarding countries that are not WTO Members and measures applied to textile and 
agricultural products. 
74. The Foreign Trade and Investment Law a llows COMEXI to levy anti-dumping and 
countervailing duties "in order to remedy unfair practices and anomalous situations concerning 
imports that injure ... the domestic industry,  in observance of WTO rules and procedures".77  T h e  
Commercial Operations Directorate of the MICIP's Under-Secretariat for Foreign Trade is responsible 
for conducting investigations concerning dumped or s ubsidized imports.  As Ecuador's investigating 
authority, it may initiate an investigation on its own mo tion or at the request of an interested party.  In 
early 2005, it had initiated no i nvestigations on its own motion.  Resolutions implementing final 
decisions on the application of anti-dumping or co untervailing duties may be challenged before the 
courts. 
75. The Andean Community General Secretariat is th e authority that conducts investigations on 
dumped or subsidized imports within the Andean legal framework, which covers imports both from 
member countries of the Andean Community (Decisions 456 and 457) and from non-member 
countries.  In the case of non-member countries, the Andean rules cover only imports affecting a 
member country's production destined for export to another member country,78 and imports affecting 
the production of several member countries that requir e remedial measures to be applied in more than 
one member country.79  
76. In the WTO Committee on Anti-Dumping Prac tices, the European Union expressed doubts 
about the WTO–consisting of the proceedings conducted by the Andean Community General 
Secretariat regarding aqueous sorbitol originating in France.80 
                                                      
72 COMEXI Resolution 289, Official  Journal 487, 22 December 2004. 
73 Official Journal 70, 4 May 2000. 
74 Andean Community Decision 283 of 21 March 1991;  Andean Community Decisions 456 and 457 of 
4 May 1999. 
75 WTO document G/ADP/N/1/EC U/2-G/SCM/N/1/ECU/2-G/SG/N/1 /ECU/3, 22 September 2000. 
76 The questions are contained in WTO documents G/ADP/Q1/ECU/10-G/SCM/Q1/ECU/10 and 
G/ADP/Q1/ECU/11-G/SCM/Q1/ECU/11, 11 April 2001. 
77 Foreign Trade and Investment Law, Article 11. 
78 Decision 283, Article 2.c. 
79 Decision 283, Article 2.d. 
80 WTO document G/ADP/M/25, 9 March 2004. Ecuador WT/TPR/S/148/Rev.1 
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(ix) Safeguard measures 
77. Since 1996, Ecuador has notified to the WTO th e initiation of seven safeguards investigations 
(Table III.6).  Three of them resulted in the imposition of definitive measures. 
 
Table III.6 
Safeguards investigations notified to the WTO, December 2004 
Products Date of 
initiation/petitioner Origin of investigated imports Decision Relevant WTO 
notifications 
Tyres (4011.1000 
and 
4011.2000) 31.10.2003/ Compañía  
Ecuatoriana del 
Caucho S.A .  
(ERCO S.A.)  Argentina;  Belgium;  Brazil;  Canada;  
Chile;  China;  Chines e Taipei;  Colombia;  
France;  Germany;  Hong Kong, China;  
Czech Republic;  India;  Indonesia;  Italy;  Japan;  Korea;  Morocco;  Mexico;  
Netherlands;  Panama;  Peru;  South Africa;  
Spain;  Thailand;  United Arab Emirates;  United Kingdom;  United States;  Russia;  
and Venezuela Investigation 
ended without 
imposition of 
measures G/SG/N/6/ECU/7, 
17.12.2003 and 
G/SG/N/9/ECU/1, 
17.03.2004 
Paper and paper board (4804.1100, 
4805.6090, 
4805.7090, 4805.8090, 4805.1100, 
4805.1900, 
4805.2400 and 
4805.2500) 31.10.2003/ Papelera 
Nacional S.A.  Belgium;  Bolivia;  Brazil;  Canada;  Chile;  
China;  Chinese Taipei;  Colombia;  Finland;  France;  Germany;  Holy See;  Italy;  Japan;  
Mexico;  Netherlands;  Norway;  Peru;  
Spain;  United States;  and Venezuela Investigation 
ended without imposition of 
measures G/SG/N/6/ECU/6, 
16.12.2003 and G/SG/N/9/ECU/2, 
15.03.2004 
Ceramic, 
porcelain and 
china 
products (6912.0000) 13.08.2003/ Cerámica 
Andina C.A.  Afghanistan;  Argentina;  Australia;  Austria;  
Belgium;  Bolivia;  Botswana;  Brazil;  
Canada;  Chile;  China;  Chinese Taipei;  
Colombia;  Costa Rica;  Cuba;  Czech Republic;  Denmark;  Dominican Republic;  
Egypt;  El Salvador;  Finland;  France;  
Germany;  Greece;  Honduras;  Hong Kong, China;  India;  Indonesia;  Iran;  Israel;  
Italy;  Japan; Kenya;  Korea;  Lebanon;  
Malaysia;  Malta;  Mexico;  Netherlands;  Panama;  Peru;  Philippines;  Puerto Rico;  
Saudi Arabia;  Singapore;  Slovakia;  Spain;  
Sweden;  Switzerland;  Thailand;  Turkey;  United Arab Emirates;  United Kingdom;  
United States;  Uruguay;  Venezuela;  and 
Vietnam Investigation 
shelved G/SG/N/6/ECU/5, 
17.09.2003 
Table III.6 (cont'd) WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 46 
 
 
Products Date of 
initiation/petitioner Origin of investigated imports Decision Relevant WTO 
notifications 
Glazed 
ceramic flags 
and paving (6908.9000 y 
6907.9000) 03.07.2003/ C.A. 
Ecuatoriana de 
Cerámica, Cerámica Rialto S.A. and 
Cerámicas Graiman Cía. 
Ltda.  Canada;  Chile;  Colombia;  Curacao;  
Dominican Republic;  Haiti;  Hong Kong, 
China;  Jamaica;  Laos;  Mexico;  Netherlands Antilles;  Norway;  Panama;  
Peru;  Puerto Rico;  United States;  and 
Venezuela Definitive 
measure in the 
form of a tariff surcharge G/SG/N/6/ECU/4, 
28.07.2003;  
G/SG/N/6/ECU/4/ Suppl.1, 
10.10.2003;  
G/SG/N/7/ECU/2, 10.10.2003;  and 
G/SG/N/8/ECU/2 
G/SG/N/10/ECU/3, 25.02.2004 
Medium density 
fibreboard 
(4411) 05.12.2002/ Aglomerados 
Cotopaxi S.A.  .. Definitive 
measure in the 
form of a 
quantitive restriction G/SG/N/6/ECU/3, 
20.02.2003;  
G/SG/N/10/ECU/2, 
26.02.2002;  and G/SG/N/8/ECU/1 
G/SG/N/10/ECU/2/
Suppl.1, 08.10.2003 
Matches (3605) 28.10.1999/ Fosforera 
Ecuatoriana S.A.  .. Definitive 
measure in the form of a tariff increase G/SG/N/6/ECU/2, 
11.11.1999;   G/SG/N/7/ECU/1, 19.12.2000; 
G/SG/N/10/ECU/1, 
18.10.2002 
Sandals 
6401.9900, 
6402.2000, 6402.1900, 
6402.9900, 
6403.1900, 6403.2000, 
6403.5100, 
6403.5900, 6403.9900, 
6404.1100, 
6404.1900, 6405.1000, 
6405.2000, 
6405.9010 12.01.1999/ Arcasol S.A. 
and Asociación de 
Fabricantes de Calzado (ASOFACAL)  .. Investigation 
shelved G/SG/N/6/ECU/1, 
28.01.1999 
.. Not available. 
Source:  WTO Secretariat. 
78. Following the imposition of definitive safeguard  measures on imports of medium density 
fibreboard, Chile requested consultations in the WTO (Chapter II (3)(i)).  According to Chile, the 
investigating authority's report showed no unforeseen  change in circumstances or any causal link 
between the increase in imports and threat of serious  injury alleged by Ecuador;  nor did it explain 
whether imports from countries to which the me asure was not applied were excluded from the 
examination of the alleged increase in imports and thr eat of injury.  Chile further contended that the 
investigating authority failed to examine separate ly the eight subheadings affected, that in its 
notifications Ecuador gave no deta ils of the manner in which it administered and distributed the 
import quotas among supplier countries, and that, by failing to notify the provisional safeguard 
measure in a timely manner, Ecuador had ruled out the possibility of consultations.  Consultations 
between Chile and Ecuador were he ld in January 2004.  The authorities indicated that the safeguard 
measure remained in force until January 2005. 
79. Under the Andean legal system, there have been no requests for investigation of imports from 
outside the Andean Community (see below). Ecuador WT/TPR/S/148/Rev.1 
 Page 47 
 
 
80. The legal framework for safeguards comprises the relevant WTO provisions, the Foreign 
Trade and Investment Law and Executive Decree No. 3497.81  Ecuador also applies Chapter XI of the 
Cartagena Agreement and Andean Community Decision 452.82  Ecuador has submitted three 
notifications on its safeguards legislation, the most recent in 2000,83 and received questions from only 
one Member, to which it did not reply.  The ques tions addressed the following aspects of Ecuador's 
legislation:  investigations, application of measu res, duration and review of measures and regional 
procedures.84 
81. Ecuador has reserved the right to impose add itional duties on seven eight-digit tariff-lines 
under the special safeguard provisions of the WTO Agreement on Agriculture.85  According to its 
notifications, it did not use any special safeguard provisions between 1996 and 2000.86  Ecuador has 
likewise reserved the right to use the transitional safeguard mechanism of the WTO Agreement on 
Textiles and Clothing.87  It has had recourse to the mechanis m once, in connection with a number of 
textiles and clothing products from Korea and Hong Kong, China.  The safeguard measure was in effect from August 1996 to February 1997.
88  Ecuador has not submitted any lists of textiles and 
clothing products for inclusion in the various stages of integration into the GATT 1994.89 
82. The Foreign Trade and Investment Law allows COMEXI to apply safeguard measures "in 
order to remedy unfair practices and anomalous situations concer ning imports that injure ... the 
domestic industry, in observance of WTO rules and procedures".90  The MICIP's Commercial 
Operations Directorate is responsible for conductin g safeguards investigations.  It may initiate an 
investigation on its own motion or at the request of an interested party. 
83. Executive Decree No. 3497 stipulates that any safeguard measure imposed on a product will 
apply "regardless of the pr ovenance" of the product.91  Safeguard measures may take the form of ad 
valorem  or specific duties, or quantitative restric tions, although Executive Decree No. 3497 expresses 
a preference for the former.92  A definitive measure may not be applied for more than four years, 
unless it is extended.  Adding together the duratio n of the provisional measure and that of any 
extension, the safeguard may not be applied for more than eight years in all.  Within 30 working days 
of publication of a COMEXI resolution initiating an  investigation, petitioners  are required to submit 
an adjustment plan showing the objectives they intend  to meet thanks to imposition of the safeguard 
measure.  COMEXI incorporates the adjustment plan in its resolution approving a definite safeguard.  
In approving application of a safeguard, COMEXI must assess the measure in terms of public interest.
93 
                                                      
81 Official Journal 744, 14 January 2003. 
82 Andean Community Decision 452 of 12 April 1999. 
83 WTO document G/ADP/N/1/EC U/2-G/SCM/N/1/ECU/2-G/SG/N/1 /ECU/3, 22 September 2000. 
84 The questions are contained in WTO document G/SG/Q7/ECU/4, 10 November 2000. 
85 Schedule CXXXIII, Part I, Section I-A, contained in WTO documents WT/L/77/Add.1, 
20 July 1995;  WT/L/77/Add.1/Corr.1, 2 August 1995;  and WT/L/77/Add.1/Corr.2, 8 August 1995. 
86 WTO documents G/AG/N/ECU/14, 11 January 2001;  G/AG/N/ECU/10, 8 December 2000;  
G/AG/N/ECU/6, 29 April 1999;  and G/AG/N/ECU/2, 3 July 1997. 
87 WTO document G/TMB/N/138, 7 March 1996. 
88 WTO documents G/TMB/R/21, 6 January 1997; G/TMB/R/22, 20 January 1997;  G/TMB/R/23, 
7 February 1997;  and G/TMB/R/30, 11 June 1997. 
89  WTO Agreement on Textiles and Clothing, Article 2.6 and 2.7(b). 
90 Foreign Trade and Investment Law, Article 11. 
91 Executive Decree No. 3497, Article 301. 
92 Executive Decree No. 3497, Article 320. 
93 Executive Decree No. 3497, Article 327. WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 48 
 
 
84. In the Andean Community system, Decision 452 al lows safeguards to be applied to imports 
from outside the Community where the domestic industr y of two or more memb ers is affected.  The 
Andean Community General Secretariat is responsib le for conducting safegua rds investigations under 
Decision 452. 
85. Under Chapter XI of the Cartag ena Agreement, a member country of the Andean Community 
may apply safeguard measures to imports from ot her member countries in order to rectify any 
balance-of-payments disequilibrium94; in the framework of the Andean Trade Liberalization 
Programme95, in the event of currency devaluation96; or when there is ev idence of disruption of 
domestic production.97  The Cartagena Agreement also allows  Andean Community Members to apply 
safeguards to certain agricultural products, liste d in Decision 474.  Safe guard measures taken under 
Chapter XI of the Cartagena Agreement must have the authorization of the General Secretariat.  
Between 2000 and 2004, Ecuador invoked the Ca rtagena Agreement safeguard mechanism in 
10 instances, and the Andean Community General Se cretariat authorized measures in two of them.98 
86. In September 2003, Ecuador applied a provisi onal safeguard measure on imports of ceramic 
flags and paving (6908.9000 and 6907.9000) from all countries.99  In January 2004, COMEXI decided 
to apply a definitive safeguard measure on impo rts of these products from all countries, "in 
accordance with the provisions of Articles 3.1 and 5.1 of the Agreement on Safeguards of the World 
Trade Organization".100  As a result, two members of the A ndean Community sought a ruling from the 
Andean Community General Secretariat as to whethe r Ecuador's adoption of the safeguard measures 
was consistent with Community rules.  One member  of the Andean Community held that, in adopting 
COMEXI's Resolutions 203 and 232, Ecuador had overlooked "the precedence of Community 
provisions over rules established for third countries, safeguards applicable to trade among members of the Andean Community being governed by the Cart agena Agreement and other regulations of the 
Community's legal system".  Ecuador took the vi ew that "safeguard measures applied within the 
regional integration system are different fro m safeguards applied under WTO provisions". 
87. In Resolution 814, the Andean Community Genera l Secretariat ruled that the duties demanded 
by Ecuador in COMEXI's Resolutions 203 and 232 constituted "levies for the purposes of the 
Cartagena Agreement Liberalization Programme" and that Ecuador should accordingly terminate 
them.  The General Secretariat noted in its Reso lution:  "the Court of Justice of the Andean 
Community has held on various occasions that th e fact that member countries of the Andean 
Community belong to the World Trade Organization as well does not relieve them of their duty to 
apply Andean Community rules on the pretext that  they are observing the rules of the WTO or 
seeking to comply with their WTO commitments".  Pu rsuant to the General Secretariat's Resolution, 
Ecuador terminated the safeguard measure, but onl y in respect of imports from Andean Community 
countries.
101 
                                                      
94 Cartagena Agreement, Article 95. 
95 Cartagena Agreement, Article 96. 
96 Cartagena Agreement, Article 98. 
97 Cartagena Agreement, Article 97. 
98 Andean Community General Secretariat Resolutions 690 of 14 January 2003 and 800 of 
20 February 2004. 
99 COMEXI Resolution 205, Official Journal 159, 1 September 2003. 
100 COMEXI Resolution 232, Official Journal 304, 31 March 2004. 
101 CAE Bulletin 44, 14 May 2004. Ecuador WT/TPR/S/148/Rev.1 
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(x) Standards and technical regulations 
 
88. At the beginning of 2005, Ecuador  had not as yet submitted to the WTO its notification on the 
implementation and administration of the Agreement on Technical Barriers to Trade.  It notified the 
Ecuadorian Institute of Standard ization (INEN) as the enquiry point required by the Agreement.102  It 
also reported that the INEN has accepted the Code of Good Practice for the Preparation, Adoption and 
Application of Standards.103 
89. The main instruments governing standardization,  metrology, certification and verification in 
Ecuador are the Organic Law on Consumer Protection104; the Foreign Trade and Investment Law;  the 
provisions on the Ecuadorian Metr ology and Standardization System105; the Law on Weights and 
Measures and its Regulations;  the Tech nical Regulation on Standardization106;  the Regulation on the 
Granting of Certificates of Conformity107;  the Regulation replacing the Regulation on goods that must 
comply with Ecuadorian technical standards, codes of practice, regulations, resolutions and technical 
regulations108;  and the List of Goods Subject to Control.109  The legislation also includes the relevant 
provisions of the WTO and various rules approved by the member countries of the Andean 
Community, including Decision 419 on the Andean syst em of standardization, accreditation, testing, 
certification, technical regulation and metrology110 and several resolutions of the Andean Community 
General Secretariat111;  Decision 506 on recognition and acceptance of certificates in respect of 
products traded in the Andean Community112;  and Decision 562 on guidelines for the drafting, 
adoption and application of techni cal resolutions in member countries of the Andean Community and 
at Community level.113 
90. The National Council of the Ecuadorian System of  Metrology, Standardization, Accreditation 
and Certification (National Council)  is responsible for framing policy on standardization, metrology, 
certification and verification.  It is composed of  representatives of the MICIP, the Ministry of 
Agriculture and Livestock, the Ministry of Public Health, the Office of the President of the Republic, 
the National Federation of Chambers  of Industry, the National Fede ration of Chambers of Commerce 
and the Ecuadorian Federation of Exporters.  Th e National Council coordinates the activities of the 
following bodies:  the INEN, which is responsible for standardization activ ities and is the national 
enquiry point notified to the WTO under Article 10 of  the Agreement on Technical Barriers to Trade;  
the Ecuadorian Accreditation Agency, an MICIP body that carries out accreditation activities;  and the 
official metrology agency, whose functions are currently performed by the INEN. 
91. The INEN is a member of the International Organization for Standardization and the Pan-
American Commission for Technical Standards, an associate member of the Inter-American 
Accreditation Cooperation and the General Conf erence on Weights and Measures, a corresponding 
                                                      
102 WTO document G/TBT/ENQ/25, 13 October 2004. 
103 WTO document G/TBT/CS/2/Rev.10, 4 March 2004. 
104 Organic Law on Consumer Protection, Codification 2000-21, 4 July 2000. 
105 Executive Decree No. 401, Official Journal 87, 30 May 2000. 
106 Executive Decree No. 3497, Title XIV, Official Journal 744, 14 January 2003. 
107 Agreement No. 587, Official Journal 128, 26 July 2000. 
108 Executive Decree No. 3497, Title III, O fficial Journal 744, 14 January 2003. 
109 Interministerial Agreement No. 02428, Official Journal 707, 19 November 2002. 
110 Andean Community Decision 419 of 30 July 1997. 
111 Resolution No. 502 of 23 July 1997, Resolution No. 503 of 23 July 1997, Resolution No. 504 of 
23 July 1997 and Resolution No. 313 of 8 November 1999. 
112 Andean Community Decision 506 of 22 June 2001. 
113 Andean Community Decision 562 of 25 June 2003. WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 50 
 
 
member of the International Organization of Lega l Metrology and the contact point for the CODEX 
Alimentarius Commission.  The Ecuadorian Accredita tion Agency is an affiliate of the International 
Laboratories Accreditation Cooperation.  Ecuador sits  on the Andean Committee for Standardization, 
Accreditation, Testing, Certification, Technical Regulation and Metrology and belongs to the Inter-
American Metrology System. 
92. At the beginning of 2004, there were 640 mandatory and 1,554 voluntary "Ecuadorian 
technical standards" in force.  Of the mandatory standards, one third belong to the food technology 
category (ICS 67).114  Chemical technology (ICS 71) accounts for some 7 per cent, of these standards 
and metallurgy (ICS 77) and petroleum (ICS 75) about  6 per cent each.  Slightly over 40 per cent of 
voluntary Ecuadorian technical standards belong to the food technology (ICS 67), construction 
materials and building (ICS 91) and mechanical systems and components for general use (ICS 21) 
categories. 
93. The authorities reported that pursuant to a rule issued by the Ministry of Foreign Trade, 
Industrialization, Fisheries and Competitiveness, no mandatory Ecuadorian technical standards had 
been adopted since April 2003;  and that Ecuador ha d been engaged since that date in converting all 
its mandatory technical standards to voluntary standa rds.  The authorities hope that the process will be 
completed in 2006.  They have also indicated th at (mandatory) technical regulations were to be 
adopted that would comply with the WTO Agreement on Technical Barriers to Trade.  In early 2005, 
Ecuador notified to the WTO four technical regul ations on the following products:  gas burning 
cooking appliances for domestic use, portable fire extinguishers;  cement, lime and gypsum;  and 
welded steel tanks and cylinders for liquefied petroleum gas.115 
94. According to the authorities, pending comple tion of the above-mentioned conversion process, 
Interministerial Agreement No. 02428 will remain in  force.  The Agreement lists the 65 Ecuadorian 
technical standards to be met by imported pr oducts under 462 10–digit tariff lines.  The authorities 
pointed out that these 462 lines correspond to a tota l of 59 products.  The categories of imported 
goods subject to the greatest number of Ecuadoria n standards are mineral fuels, crude oil from 
petroleum and bituminous minerals (HS Chapter 27 ), iron and steel products (HS Chapter 72) and 
motor vehicles (HS Chapter 87).  Taken together, the above categories account for some 45 per cent 
of the Ecuadorian standards to be met by importe d products.  Interministerial Agreement No. 02428 
refers only to products under HS Chapters 25 and following.  There are also Ecuadorian technical 
standards that apply to the products in HS Chapters  1 to 24, and compliance with them is one of the 
requirements for obtaining sanitary certificates or san itary and phytosanitary permits (section (xi)). 
95. All the Ecuadorian technical standards in Interministerial Agreement No. 02428 are 
mandatory, except NTE 1332-98, which is a voluntary st andard applying to tubes, pipes and tube and 
pipe fittings.  According to the authorities, it w as included in Interministe rial Agreement No. 02428 
by mistake and in practice imports need not comply with it. 
96. Form INEN-1, issued by the INEN, is require d for importation of the products listed in 
Interministerial Agreement No. 02428.  The form is valid for one year and covers all shipments of the 
product applied for.  There are three types of app lication for form INEN-1:  importers may submit to 
the INEN a certificate of conformity with an N TE INEN standard, an ISO international technical 
standard or a foreign standard "of repute".116  According to Decree No. 3497, standards "of repute" 
                                                      
114 ICS = International Classification of Standards. 
115 WTO documents G/TBT/N/ECU/1, 1 February 2005, G/TBT/N/ECU/2, 3 February 2005; 
G/TBT/N/ECU/4, 17 March 2005;  and G/TBT/N/ECU/5, 17 March 2005. 
116 Decree No. 3497, Article 44. Ecuador WT/TPR/S/148/Rev.1 
 Page 51 
 
 
include DIN standards (German industrial standards) , JAS and JIS (Japanese) standards and various 
United States standards.  Certificates of conformity with an ISO international technical standard or a 
standard "of repute" are granted by duly accredited certification bodies in the product's country of origin.  Companies with ISO-9001 certification applying for the INEN-1 form may submit a 
manufacturer's declaration to the INEN and need not  provide a certificate of conformity from another 
body.  Prior accreditation in Ecuador is not require d of bodies certifying conformity with a foreign 
standard.  
97. The authorities indicated that, in the case of app lications for form INEN-1 that are based on a 
certificate of conformity with a foreign standard  "of repute", the INEN accepts "unilaterally" and 
without verification that the foreign standard is equivalent to the Ecuadorian technical standard. 
98. In the case of imported vehicles, steel cylinders for liquefied petroleum gas, refrigerators and 
cookers, applicants for form INEN-1 that submit certificates of confor mity with a foreign standard of 
repute must also submit the report of the laboratory th at carried out the testing for the standard.  Such 
laboratories do not have to be accredited in Ecuador.  According to the authorities, laboratory reports 
and tests are not required for any other imported pr oducts.  Certificates of conformity must be 
submitted in Spanish or English and contain the fo llowing information:  name and address of the 
certifying body, certificate number, place and date of issuance, name and signature of the official, name and address of the certifying body's accreditation agency, and the description and tariff subheading of the product, together with its type, trademark, country of origin or purchase and the 
name and address of the manufacturer or supplier.  The INEN reviews the documentation and issues a 
decision within 72 hours. 
99. There is no physical inspection at the border to determine the conformity of imported 
products with Ecuadorian technical  standards.  The INEN may carry out conformity checks on 
products (domestic as well as imported) that are su bject to mandatory Ecuadorian technical standards 
at the marketing stage, either on its own initiative or following consumer co mplaints, in accordance 
with the Organic Law on Consumer Protection. 
100. Ecuador has concluded mutual recognition agreem ents with Colombia, Peru and Venezuela.  
Under the Andean Standardization Network, a mech anism enabling member countries' standardization 
bodies to join forces for the purpose of preparing An dean standards or harm onizing national standards 
in "priority" sectors, 50 Andean standards have been adopted.
117  All are voluntary. 
101. For purposes of public consultation, the Technical  Regulation on Standardization requires the 
INEN to publish draft Ecuadorian t echnical standards in its bulletin.118  The Regulation says nothing 
about the length of the consultation period, but the authorities indicate that the practice is to allow 
60 days.  For member countries of the Andean Community, the period of public consultation is 
90 days, pursuant to Andean Community Decision 562. 
102. The Technical Regulation on Standardization la ys down a procedure for the formulation and 
approval of draft Ecuadorian technical standards in cases of emergency.119  Although the emergency 
procedure does not require public consultation before  a technical regulation is adopted, it does specify 
that emergency technical standards may not remain in  force indefinitely and that public consultation is 
required in order to extend them.  At the begi nning of 2005, two emerge ncy Ecuadorian technical 
                                                      
117 Cartagena Agreement Board Resolution 503 of 23 July 1997. 
118 The INEN's official bulletin is available on-line at:  http://www.inen.gov.ec 
119 Decree No. 3497, Articles 209-211. WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 52 
 
 
standards had been adopted.  Both are for PVC tele phone and electricity cond uits, and neither applies 
to imports. 
103. The INEN has two laboratories, one for metrology  and the other for chemistry, food analysis 
and microbiology.  Two more laboratories are planne d, one for scientific metrology and the other for 
physical verification.  At the beginning of 200 5, the Ecuadorian Accreditation Agency was processing 
accreditation applications from 16 analysis and calib ration laboratories.  Of the five laboratories 
accredited, three are private and two belong to the State. 
(xi) Sanitary measures 
104. At the beginning of 2005, Ec uador had submitted no notifica tions under the WTO Agreement 
on the Application of Sanitary and Phytosanitary Measures. 
105. The main legal provisions on animal and pl ant health are the Law on Animal Health,120 the 
Law on Plant Health121, the Law on Pesticides122, the Law on Seeds123 and their implementing 
regulations.124  The legal framework also includes the re levant WTO rules and various instruments 
approved by the member countries of the Andean Community, including Decision 515 on the Andean 
Agricultural Health System and Resolutions 347, 431, 449 and 451 issued by the Cartagena 
Agreement Board.125 
106. According to the authorities, Ecuador is wo rking on legislation to govern biotechnology 
security.  As at early 2005, imports were not checked for genetically modified organisms. 
107. The Ecuadorian Agricultural Health Service (S ESA), which reports to the Ministry of 
Agriculture and Livestock, sets requirements and pr ohibitions pertaining to the importation of plants 
and plant products according to "the law a nd international phyto sanitary agreements".126  For the 
importation of animals and animal products, SESA has the authority to establish requirements "in accordance with the [Law on Animal Health], its Regulation, the Basic Catalogue of Pests and 
Diseases Exotic to the Andean Subregion and any ot her relevant [instruments] that exist or are 
adopted".
127 
108. No document was available to the WTO Secret ariat showing the animal and plant health 
measures that Ecuador applies to imports. 
109. The Andean Community has a subregional register  of its members' sanitary and phytosanitary 
standards.  According to Andean Community Decision 515, a Community member may require 
                                                      
120 Law No. 56, Official Journal 409, 31 March 1981. 
121 Decree No. 52, Official Journal 475, 18 January 1974. 
122 Law (No. 73) on the Formulation, Manufacture, Importation, Marketing and Use of Pesticides and 
Related Products for Agricultural Purposes, Official Journal 442, 22 May 1990. 
123 Decree No. 2509, Official Journal 594, 26 May 1978. 
124 General Regulation of the Law on Animal Health, Official Journal 1008, 10 August 1996;  
Regulation of the Law on Plant Health, Executive Decree No. 189, 30 September 1998;  and General Regulation 
of the Law on Seeds, Agr eement No. 375, Official Jour nal 728, 11 December 1978. 
125 Cartagena Agreement Board Reso lution 347 of 18 February 1994;  Cartagena Agreement Board 
Resolution 431 of 12 September 1996;  Cartagena Agreement Board Resolution 449 of 23 January 1997;  
Cartagena Agreement Board Resolution 451 of 23 January 1997;  Andean Community Decision 515 of 8 March 2002. 
126 Regulation of the Law on Plant Health, Article 7. 
127 Law on Animal Health, Article 17. Ecuador WT/TPR/S/148/Rev.1 
 Page 53 
 
 
another member to comply with its sanitary and ph ytosanitary standards only if the latter have been 
incorporated in the subregional register.  Ecuador's  sanitary and phytosanitary standards listed in the 
subregional register are shown in Tables AIII.3 a nd AIII.4.  Ecuador and the other members of the 
Andean Community have adopted common sanitary requirements for 31 agricultural products and 
most animals and animal products.128  There are also harmonized requirements and procedures for the 
registration and control of chemic al pesticides for agricultural use.129 
110. Imports of animals, plants and their products mu st be covered by a certificate of animal or 
plant health issued by the national health authority of the country of origin.130  This requirement 
applies regardless of where the imports originate.  Animal health certificates must be accompanied by 
documentation showing:  absence of any infectious/c ontagious diseases in the animals' areas of origin 
over a period preceding shipment which varies accordin g to the disease;  immunization with vaccines 
prescribed by SESA and anti-parasite treatment undergone by the animals.  Importers must also show that the results of individual laboratory tests and examinations to detect the presence of 
infectious/contagious diseases were negative. 
111. SESA may require plant health certificates to be  accompanied by a fumigation or quarantine 
treatment certificate issued by the country of origin .  Importers of propagation material must submit 
documents showing that the material is pure and fre e of weed seeds and stating the date of production 
and the products and doses used in disinfection. 
112. Once it has approved importation, SESA issues a pl ant or animal health permit showing the 
treatment and requirements the product must comply with in order to enter the country.  Imports 
covered by a plant or animal health certificate are su bject to physical inspection at the port of entry.  
This means that imports can enter only at ports where SESA has inspection and quarantine facilities, 
namely:  Quito and Guayaquil airports, the seaports  of Guayaquil, Manta, Esmeraldas and Puerto 
Bolívar and the land entry posts of Tulcán, Macará and Huaquillas.  If the results of the physical 
inspection are satisfactory, SESA issues a licence allowing entry of the products. 
113. For imports of animals, plants and their pr oducts entering Ecuador through the provinces of 
El  Oro, Loja and Carchi, the Ministry of Agri culture has empowered the provincial authorities to 
issue plant and animal health certificates.
131 
114. In order to import the animals, plants and their products listed in Annex 1 to COMEXI 
Resolution 183, an import license issued by the Mi nistry of Agriculture and Livestock must be 
submitted together with the animal or plant health certificate (section (vii)). 
115. A sanitary certificate ( registro sanitario ) from the Ministry of Public Health is required for 
imports of additives, processed foods, medicines, drugs, homeopathic products, medical appliances 
and pesticides for domestic use.  The same certif icate is required in order to market domestic 
                                                      
128 The sanitary standards applying to trade between members of the Andean Community are set out in 
Cartagena Agreement Board Resolution 347 of 18 February 1997.  The standards for imports from outside the Andean Community are contained in Cartagena Agreement Board Resolution 449 of 23 January 1997. 
129 Andean Community Decision 436 of 11 June 1 998 and Andean Community  General Secretariat 
Resolution 630. 
130 General Regulation of the Law on Animal Health, Article 14, and Regulation of the Law on Plant 
Health, Article 4. 
131 Agreement No. 354 of 15 October 2001. WT/TPR/S/148/Rev.1 Trade Policy Review 
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products.132  Applications for the certificate must be addressed to the "Leopoldo Izquieta Pérez" 
National Hygiene Institute.  The permit is valid for 10 years. 
116. Besides the sanitary certificate from the Ministry  of Public Health, an import licence from the 
same ministry is required for the importation of a dditives, processed foods and their raw materials, 
medicines, cosmetics, drugs, homeopathic products , medical appliances and pesticides for domestic 
use listed in Annex 1 to COMEXI Resolution 183 (section (vii)). 
117. Ecuador, together with the other member countries of the Andean Community, have a special 
regime for the registration and importation of co smetics, under which the sanitary certificate is 
replaced by a notification requirement for the market ing in Ecuador of cosmetics originating in the 
Andean Community or third countries.133 
(2) MEASURES AFFECTING EXPORTS  
(i) Registration and documentation 
118. The main legal provisions governing the regist ration and documentation of exports are the 
Organic Customs Law and its implementing regulati ons and the Law on Facilitation of Exports and 
Waterborne Transport.134  Exporters must register with the Ce ntral Bank.  Registration is automatic 
and valid indefinitely.  The sole requirement is  a Taxpayer's Registration Number issued by the 
Internal Revenue Service.  For goods amounting to  more than US$2,000, exporters must enlist the 
services of a customs broker to carry out the customs formalities. 
119. All exports require a visto bueno  (approval) from the Central Bank.135  To obtain it, exporters 
must submit to one of the banks authorized by the Central Bank the single export form, the 
commercial invoice and, for exports of coffee and co coa, a quality certificate issued by the National 
Coffee Board (COFENAC) or the Nationa l Association of Cocoa Exporters.136  Prior authorization is 
required for exports of roundwood and specimens of wild flora and fauna and their products.  The 
single export form can be obtained from authorized banks.  The visto bueno  is issued automatically to 
exporters that meet the requirements laid down in  the Central Bank's Foreign Trade Regulations, and 
formalities can be done over the Internet.137 
120. Formalities with the customs authority require submission of the single export form together 
with the visto bueno  from the Central Bank, the commercial invoice, the transport document and, 
where necessary, the prior authorization.  Althou gh Customs is empowered to carry out physical 
inspections on all goods for export, the authorities said that in practice a negligible proportion of 
exports underwent physical inspection. 
121. Exporters needing certificates of origin in order to comply with import requirements in the 
country of destination may apply for them to  the MICIP, the Ecuadorian Export Federation 
(FEDEXPOR) or the chambers of commerce or industry.  The MICIP issues certificates of origin for products exported under preferences granted by th e United States and the European Union, while 
                                                     
 
132 COMEXI Resolution 183, Annex IV. 
133 Andean Community Decision 516 of 8 March 2002. 
134 Law No. 147, Official Journal 901, 25 March 1992. 
135 Codifed Regulations of the Central Bank of Ecuador, Book II, Second Title, Section II, Article 1. 
136 Interministerial Agreement No. 0399 of 30 Decem ber 1997 and Interministe rial Agreement No. 297 
of 22 June 1998. 
137 See http://www.bce.fin.ec. Ecuador WT/TPR/S/148/Rev.1 
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FEDEXPOR issues the certificates of origin requir ed for goods to be exported to the Andean 
Community and under LAIA agreements.  The cham bers of commerce or industry issue all other 
certificates of origin.  For plant a nd animal health certificates, exporters must apply to the Ecuadorian 
Agricultural Health Service.  The National Fish eries Institute issues fish health certificates. 
(ii) Other charges and minimum prices 
122. Ecuador abolished export taxes though the La w on Facilitation of Exports and Waterborne 
Transport.  Exports are exempt from special consumption tax and have zero tariff status for purposes of value added tax (section (1)(v)).  They are s ubject to the "redeemable quota".  In addition, 
minimum prices apply to exports of certain products. 
123. The redeemable quota applied to exports amounts to 0.15 per cent of their f.o.b. value, except 
for petroleum and petroleum products, which are subject to a redeemable quota of 0.05 per cent.
138  
The redeemable quota applies regard less of destination.  Exporte rs accumulating US$500 in paid up 
redeemable quotas may apply to CORPEI for a certificate ( Certificado de Aportación ) in that amount.  
After 10 years, certificates may be cashed in fo r their nominal value.  The proceeds from the 
investment of redeemable quotas are used to  part-finance CORPEI's activities (section (v)).139 
124. Exports of unground coffee, roasted unground coffee and roasted ground coffee are subject to 
a contribution amounting to 2 per cent of their f.o.b. value.140  The proceeds of the contributions go to 
the National Coffee Board. 
125. Exports of banana and plantains141, cocoa142, coffee143, shrimp and fish products are subject to 
minimum reference prices.  The value declared on the single export form may not be less than the 
minimum reference price set for each product.  The minimum reference price for bananas is based on 
a "minimum support price" that ba nana exporters must pay producers and which is usually set in an 
agreement between the MAG and the MICIP (Chapter IV (1)(ii)).  For cocoa, the minimum reference 
price is set by a special commission, comprising representatives of the MICIP, the MAG and the National Association of Cocoa Producers.
144  There is no available information on the setting of 
minimum reference prices for other products. 
(iii) Prohibitions, licensing and other restrictions 
126. Ecuador has undertaken to apply export restric tions to certain products pursuant to the 
Convention on International Trade in Endangered Species of Wild Flora and Fauna and the Basel 
Convention on the Control of Transboundary Move ments of Hazardous Wastes and Their Disposal, 
and the Montreal Protocol on Substa nces that Deplete the Ozone Layer. 
                                                      
138 Foreign Trade and Investment Law, Article 22. 
139 Foreign Trade and Investment Law, Article 22. 
140 Special Law on the Coffee Sector, Article 8, Official Journal 657, 20 March 1995. 
141 Law to Promote and Control the Production and Marketing of Bananas, Plantains (Barraganete) and 
related Musaceas Plants, destined for expo rtation, and its implementing regulations. 
142 Law No. 79, Official Journal 93, 2 October 1981. 
143 Special Law on the Coffee Sector, and Execu tive Decree No. 2855, Official Journal 736, 
12 July 1995. 
144 Executive Decree No. 1720-A, Official Journal 369, 2 July 2004. WT/TPR/S/148/Rev.1 Trade Policy Review 
Page 56 
 
 
127. The exportation of roundwood is prohibited ex cept in limited quantities for scientific and 
experimental purposes.145  Prior authorization for the export of roundwood is issued by the MAG.  
The exportation of semi-finished forest products is  authorized only when "domestic needs and the 
minimum levels of industrializa tion therefor have been met".146  In such cases prior authorization is 
obtained from the MAG and the MICIP. 
128. According to the authorities, there are restric tions on exports of goods that form part of 
Ecuador's cultural, artistic, archaeo logical and historical heritage. 
(iv) Subsidies, charge and tax concessions and free zones 
129. During Ecuador's WTO accession process, the representative of Ecuador stated that the 
Ecuadorian Government planned to  abolish all existing export subsidies by November 1995 at the 
latest and that thereafter Ecuador would grant no export subsidies.147 
130. In 1999, Ecuador reported to the WTO that it ha d authorized no specific subsidies within the 
meaning of the Agreement on Subsidies and Countervailing Measures.148  In its most recent 
notification on commitments concerning export subsid ies on agricultural products, Ecuador stated that 
it had granted no subsidies in 2000.149 
131. Ecuador has several regimes under which it offers  various tax concessions.  Three of them are 
described below (Table III.7).  The othe rs are dealt with in section (1)(iv). 
Table III.7 
Programmes offering concessions on duties and other taxes, December 2004 
 Drawback Maquila Free zone 
Basis in law Organic Customs Law, 
Regulations on the 
Drawback of Customs Duties (Executive Decree 
No. 653 of 
11 August 2003) Organic Customs Law, Law on the 
Maquila Regime and Hiring of Part Time 
Labour (Law No. 90, Official Journal Suppl. 494, 3 August 1990) and Maquila 
Law Regulations (Executive Decree 
No. 1921, Official Journal 553, 31 October 1990) Organic Customs Law, Law on Free Zones 
(Law No. 1, Official Journal 625, 
19 February 1991) and its Regulations (Executive Decree No. 2790, Official 
Journal 624, 23 July 2002) 
General objectives set 
in the Law Enhance competitiveness 
of the export sector Modernize production sectors, increase 
investment in high technology sectors, 
raise employment, train the workforce, provide for more domestic components to be incorporated in production Promote employment, foreign currency 
earnings, foreign investment, technology 
transfer, increased exports of goods and services and development of the country's depressed geographical areas 
Benefits offered by the 
programme 
(duration) Refund of duties paid on 
imported inputs or inputs purchased locally from 
direct importers 
(indefinite) Suspension of duties and other taxes on 
imports of inputs, equipment and other implements pending their exportation 
(indefinite, except in the case of 
equipment, including tools, machinery and parts which may be imported under 
the regime for the first six months only) Exemption from income tax or any other 
tax replacing it, provincial and municipal taxes and any other such tax as may be 
created (20 years, extendable) 
Exemption from duties and other taxes on 
imports of inputs, equipment and other 
implements (indefinite)  
Goods entering free zones are not subject to 
control by customs administration 
Both administering and user companies are 
eligible for these advantages 
   Table III.7 (cont'd) 
                                                      
145 Law No. 74 on Forestry and the Conservation of Natural Areas and Wildlife, Article 45, Official 
Journal 64, 24 August 1981. 
146 Law on Forestry and the Conservation of  Natural Areas and Wildlife, Article 46. 
147 WTO document WT/L/77, 14 July 1995. 
148 WTO document G/SCM/N/38/ECU, 3 May 1999. 
149 WTO document G/AG/N/ECU/16, 11 January 2001. Ecuador WT/TPR/S/148/Rev.1 
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 Drawback Maquila Free zone 
Authorized 
activities Exportation, except for 
hydrocarbons Industrial or service processes for the 
manufacture processing, transformation 
or repair of goods of foreign origin for 
subsequent re-exportation Processing of goods for exportation or re-
exportation;  international marketing of 
goods for importation, exportation or re-
exportation;  and provision of "international" services, including tourist 
services 
Special charges 
(amount) Customs control charge 
(US$40 per shipment) Customs control charge (US$40 per 
shipment) Customs control charge (US$40 per 
shipment) 
Source :  WTO Secretariat. 
 
(a) Drawback regime 
132. The drawback regime is open to any domestic or  foreign exporter registered as a taxpayer in 
Ecuador, except exporters of hydrocarbons.  Eligible  exporters must register with the Ecuadorian 
Customs Corporation (CAE), submitting a list of the i nputs used in the manufacture of each of their 
export products and a certificate from the Internal Re venue Service showing the ratio of the value of 
their exports to the total value of their sales.  The certificate is used in determining the amount of the 
refund to the exporter, which is calculated on the basi s of the ratio of export value to total sales.  
Registration with the CAE is automatic provided all requirements are met, and is valid indefinitely. 
133. The amount to be refunded under the drawback regime may not exceed 5 per cent of the f.o.b. 
value of the exported goods.  Exporters may request refund of any amount in excess of this in a future 
application or after one year.  Refund ap plications may be submitted electronically. 
(b) Maquila regime 
134. In 2004, imports entering Ecuador under the ma quila regime amounted to US$77.3 million. 
135. In order to qualify for the maquila regime, a company must register with the MICIP as a 
"maquiladora".  The MICIP must likewise aut horize the "maquila programme" under which the 
company operates and which consists of the sp ecific activities agreed upon by the maquiladora and 
the entity hiring its services.  Registration as a maqu iladora is automatic for companies meeting all the 
requirements.  Before the MICIP will authorize a maquila programme, registered maquiladoras must 
file an application providing the following information:  description of the processes used under the 
programme;  description, quantity and value of inputs;  destination of output;  minimum number of employees;  duration of the programme.  The MICIP has 10 days within which to authorize the maquila programme.  There are no minimum employmen t or domestic input requirements to be met.  
The MICIP may extend a maquila programme. 
136. A maquiladora seeking to import under the maquila regime must post a guarantee equal to the 
amount of the taxes payable at the time of importing the goods.  The guarantee must be valid for 30 days more than the duration of the maquila pr ogramme.  It lapses once the goods processed by the 
maquiladora have been re-exported. 
137. No goods imported under the maquila regime may be imported into the customs territory of 
Ecuador other than waste or quality rejects th at cannot be re-exported owing to unforeseen 
circumstances or force majeure.
150  Such importation is subject to a favourable report from the MICIP 
and authorization by the Ministry of Finance and P ublic Credit.  Waste or rejects entering the customs 
territory of Ecuador under these circumstances are liable for duties and other taxes. 
                                                      
150 Law on the Maquila Regime and the Hiring of Part Time Labour, Article 12. WT/TPR/S/148/Rev.1 Trade Policy Review 
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138. The MICIP may suspend or terminate author ization of maquiladora operations if they 
generate "substances or elements that pollute or  are harmful to health and the environment."151 
(c) Free zone regime 
139. Between 2000 and 2003, yearly average imports to free zones amounted to US$78.9 million.  
As at early 2005, four free zones were in operation:  two in Manta, one in Esmeraldas and one in 
Quito. 
140. The National Council for Free Zones (CONAZOF RA) is responsible for framing general 
policy for the operation and supervis ion of free zones.  Its members are the President of the Republic, 
the Ministers for Foreign Trade, Industrializati on and Fishing, Finance and Public Credit, and 
National Defence, a representative of the Chamber of Free Zones of Ecuador and a representative of 
free zone users. 
141. Any domestic or foreign company may apply for a concession to operate and administer a free 
zone.  It must submit an application to the Executive Director of CONAZOFRA together with certified copies of the company's articles of incor poration and the title deeds of the land on which it 
plans to set up the free zone. 
142. The President of the Republic has the author ity to grant a concession for the operation and 
administration of a free zone on the basis of a decision by CONAZOFRA.  CONAZOFRA's decision takes account of the company's "legal and financia l" capacity and its estimates of the national value 
added and employment that would accrue from th e establishment of the free zone, but no minimum 
requirement is applied to any of these factors in assessing applications. 
143. Companies administering free zones are authorized  to build the basic infrastructure as well as 
premises for offices and for storage or depot fa cilities in the free zone and to provide, either 
themselves or through subcontractors, water, electricity and telecommunication services.  
CONAZOFRA supervises their operations and requir es them to submit on a daily basis data on the 
value, volume, origin and destination of all produc ts entering and leaving the free zone.  The same 
data must be supplied to the Internal Revenue Serv ice, the CAE and the Central Bank.  Administering 
companies must also submit an annual report to  CONAZOFRA on production, commercial operations 
and the use of labour in the free zone. 
144. Any domestic or foreign company wishing to set up business in a free zone must apply to the 
administering company.  Foreign companies are no t required to set up a subsidiary or branch in 
Ecuador in order to operate in a free zone.  They need only provide evidence of their incorporation in 
their country of origin by means of a consular cer tificate and have a legal representative in Ecuador.  
They must also demonstrate "the feasibility of their projects."
152  The administering company has 
15 days within which to accept the application. 
145. Companies operating in a free zone may export their output to the customs territory of 
Ecuador after payment of duties and other import tax es.  The amount of the duties is calculated on the 
basis of the imported inputs and the rate pertaining to the finished product applies.  The Law on Free 
Zones says nothing about payment of income tax on the profits made by free zone users from their 
exports to the customs territory of Ecuador.  Acco rding to the authorities, in practice users are not 
                                                      
151 Law on the Maquila Regime and the Hiring of Part Time Labour, Article 9. 
152 Regulation of the Law on Free Zones, Article 22. Ecuador WT/TPR/S/148/Rev.1 
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required to pay income tax.  Between 2000 and 2003,  exports to the customs territory of Ecuador 
amounted on average to a little more than 70 per cent of total exports from free zones. 
(v) Export promotion and marketing support 
146. The Export Promotion and Investment Co rporation (CORPEI) is responsible for 
implementing export promotion policy and for attracti ng foreign investment.  Established in 1997 by 
the Foreign Trade and Investment Law, CORPEI is  a private non-profit institution recognized by the 
State as the official body in charge of promoting exports and non-petroleum investment.  Its Board of 
Directors comprises representatives of the public and private sectors.  Its activities are funded in part 
from the proceeds of the redeemable quota applied to  imports and exports (section (ii) and (1)(v)).  
CORPEI has an annual budget of between US$4 and US$4.5 million. 
147. CORPEI carries out diagnosis and strategic sector al plans.  It develops training programmes 
for exporters;  acts as a facilitator in the establishm ent of strategic alliances  between companies;  
supports trade promotion events and maintains an  information centre covering products, markets, 
export management, trade negotiations  and investment.  In association with the Ministry of Foreign 
Affairs, CORPEI operates a network of commercial offices that support its activities abroad.  They are 
located in Australia, Belgium, Brazil, Canada, Ch ile, China, Colombia, France, Germany, Italy, 
Mexico, Netherlands, Peru, Spain, Sweden, United Kingdom and United States. 
(vi) Financing, insurance and guarantees 
148. The National Finance Corporation, a public development bank, operates a credit facility 
known as FOPEX, which grants loans of up to US$ 400,000 to companies established in Ecuador to 
finance operations relating to the shipment of go ods for export or the production of exportable goods.  
The loans on offer are for up to 180 days and carry an  interest rate of from 4.58 per cent to 6.25 per 
cent.  According to the authorities, the Corporation grants the loans through financial intermediaries, 
and the rates paid by the end borrowers are up to 4 percentage points higher.  In 2003, loans granted 
through FOPEX totalled US$500,000.153 
149. CORPEI administers several programmes providing financial support for exports.  One of 
them, ExpoEcuador, has funds of €10 million gr anted by the European Union and €4.5 million 
provided by Ecuador.  Some €5 million are channe lled in the form of non-refundable resources to 
technical assistance activities aimed at improving the competitiveness of small and medium-sized 
export companies or companies with export plans.  These funds may not be used to acquire assets or 
cover the company's operating costs, and €19,000 is the maximum amount granted to eligible 
companies.  The funds are open only to companies whose capital is more than 50 per cent Ecuadorian 
in origin. 
150. There are no State export insurance or guarantee programmes.  The private sector provides 
these services under market conditions.  The Export Credit Insurance Standards require insurance 
companies offering export credit insurance to have authorization from the Superintendency of Banks 
and Insurance in order to provide their services in Ecuador.154 
(vii) Measures applied in third markets 
151. Ecuador has preferential access to several third markets (Chapter II (3)(ii)). 
                                                      
153 National Finance Corporation (2003), p. 10. 
154 Executive Decree No. 1793, Official Journal 365, 28 June 2004. WT/TPR/S/148/Rev.1 Trade Policy Review 
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152. The European Union maintains a system of ta riff quotas for imports of bananas, Ecuador's 
main non-petroleum export.  Between October 2004 and September 2005, the United States allocated 
to Ecuador slightly more than 1 per cent (equivalent  to 11,583 tonnes) of the in-quota share of its 
tariff quota for raw cane sugar.155 
153. Since July 2003, Mexico has applied definitiv e anti-dumping measures to exports of ceramic 
dishware and loose articles from Ecuador.156  In August 2004, the United States applied a preliminary 
anti-dumping measure to imports of fro zen and canned shrimp from Ecuador. 
(3) O THER MEASURES AFFECTING PRODUCTION AND TRADE  
 
(i) Company registration 
154. The formation of companies is governed by the Law on Companies157 and the Commercial 
Code.  The most common of the five types of co mpany allowed under the Law on Companies are the 
public limited company, the limited liability compan y and the semi-public company.  Semi-public 
companies are companies in which both the State and private parties participate; they perform 
activities relating to "the development and promotion of  agriculture and of industries beneficial to the 
national economy ... the satisfaction of collective n eeds [and] the provision of new public services or 
the improvement of those already in existence".158  The formation of companies that "tend towards 
monopoly of the means of subsistence or a branch of an industry" is prohibited.159  
155. The Superintendency of Companies must approv e the articles of incorporation of public 
limited companies, limited liab ility companies and semi-public companies in order for them to 
acquire legal existence.  The Law on Companies does not specify a time limit for approval of articles  
of incorporation.  Once the articles have been a pproved, the Superintendency of Companies orders 
registration in the Trade Register and publication.  In order to register in the Trade Register, a 
certificate is required showing registration with a ch amber of commerce.  If the Superintendency of 
Companies refuses approval, it must state its reasons.  A refusal may be challenged before the district 
administrative court. 
156. To set up a branch in Ecuador, a foreign comp any must submit its articles of incorporation 
and by-laws to the Superintendency of Companies.  It must also submit a certificate issued by an 
Ecuadorian consul confirming the existence of the comp any, its eligibility to operate in the country in 
which it is based, and its capacity to trade in other countries.  It must also provide a document certifying that its board of directors has decided to operate in Ecuador and specifying the capital 
designated for the purpose.  Branches of foreign companies must have at least one resident 
representative in Ecuador with full authority to  represent the company in all business operations 
conducted in the country.  Once the Superintende ncy of Companies has verified the information 
submitted, it authorizes establishment of the branch and orders its publication and registration in the 
Trade Register. 
                                                     
 
155 Federal Register Vol. 69, No. 147, 2 August 2004. 
156 WTO document G/ADP/N/112/MEX, 24 February 2004. 
157 Codification No. 000, Official Journal 312, 5 November 1999. 
158 Law on Companies, Articles 308 and 309. 
159 Law on Companies, Article 3. Ecuador WT/TPR/S/148/Rev.1 
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157. A survey of investors conducted by the United Nations Conference on Trade and 
Development (UNCTAD) revealed that procedures for setting up companies in Ecuador were fairly smooth.
160 
(ii) Competition policy 
158. A number of Ecuadorian laws contain provisions  on competition policy.  According to the 
Constitution, it is the State's responsibility to "p romote the development of competitive activities and 
markets [  , ] encourage free competition and penalize, in  accordance with the law, monopolistic and 
other practices which hinder and distort it".161  The Foreign Trade and Investment Law prohibits any 
practices or arrangements that restrict free co mpetition.  The Law on Companies prohibits the 
formation of companies "that tend towards monopoly of the means of subsistence or of a branch of an 
industry by means of trade practi ces directed towards that end".162  However, because they are general 
in nature and there is no specialist body resp onsible for competition policy, these provisions are 
difficult to enforce.  To address this situation, a preliminary draft law on competition policy has been 
prepared, which the authorities hoped to refer to the National Congress during the first quarter of 
2005. 
159. A number of sectoral laws also contain provisions  on competition policy.  In some cases they 
provide for the establishment of regulatory bodi es with responsibilities in the area of competition 
policy (Chapter IV (5) and (6)). 
160. Within the Andean Community framework, Ecua dor is signatory to Decision 285, which 
applies where practices affect competit ion in more than one member country.163  The Decision seeks 
notably to prevent or correct distortions to competition in the region resulting from concerted 
restrictive practices or abuse of dominant position, in cluding:  price fixing;  lim itations on production, 
distribution, exports, imports, technical development and investments;  market sharing arrangements;  
the non-supply of inputs to companies also compe ting for the market of the end-product;  and making 
the conclusion of contracts subject to the acceptance of additional obligations.164  Decision 285 does 
not cover mergers. 
161. The implementation of Decision 285 is the res ponsibility of the General Secretariat of the 
Andean Community, which has the authority to co nduct investigations at the request of member 
countries or affected companies.  During the cour se of these investigations, the General Secretariat 
must establish whether there is any evidence of prac tices restricting free competition, threat of injury, 
injury, and a causal link between the restrictive practi ces and the threat of injury or the injury.  Some 
observers have pointed out that what Decision 285 prescribes is an analysis not so much of 
competition policy as of contingency measures.165 
162. The Andean Community General Secretariat ha s two months in which to carry out its 
investigation.  If its finding is positive, the Genera l Secretariat may either issue an order to stop the 
restrictive practice in question or authorize the affected country to take corrective measures.  
Corrective measures may include applying a tariff lower than the common external tariff to the 
products affected by the restrictive practice. 
                                                      
160 UNCTAD (2001), p.55. 
161 Political Constitution of Ecuador, 1998, Article 244.  
162 Law on Companies, Codification No. 000, Article 3, Official Journal 312, 5 November 1999. 
163 Andean Community Decision 285 of 21 March 1991. 
164 Andean Community Decision 285, Articles 4 and 5. 
165 Tavares d'Araujo (2001), p. 247. WT/TPR/S/148/Rev.1 Trade Policy Review 
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163. Only one complaint made under Decision 285 has involved an Ecuadorian company.  The 
company in question objected that certain practi ces of companies in Colombia and Venezuela were 
restricting free competition.  The Andean Communi ty General Secretariat declared the complaint 
(lodged in 1997) unfounded.  A draft decision has been drawn up to replace Andean Community 
Decision 285.  
164. According to the authorities, no studies have been conducted on the level of competition in 
the Ecuadorian economy. 
(iii) Price fixing, production controls and marketing agreements 
165. In general, the State plays no part in fixing prices.  The Organic Law on Consumer Protection 
authorizes the President of the Republic, "in excep tional cases", to control temporarily the prices of 
goods and services.  The President may exercise this authority inter alia  "when the country's 
economic situation has given rise to an unjustified increase in prices".166 All prices controlled under 
this law must be reviewed every six months or when ever an interested party so requests.  The same 
law requires that, in fixing prices, consideration be given to the effects that the control measure might have on supply. 
166. The State controls the prices of fuels (Chapter IV (3))
167 and medicines.168  During the first 
half of 2002, there were controls on the price of wheat flour used for making bread and bread products 
and noodles, and on the price of bread and bread products and noodles.169  Electricity and telephone 
tariffs are subject to official price controls. 
167. There is a prohibition on extending the surface area devoted to banana-growing.170 
(iv) State trading, State-owned companies and privatization  
168. In the context of the present review, the author ities pointed out that no State-owned or private 
companies enjoy exclusive privileges which affect the level or direction of imports or exports. 
169. The National Agricultural Product Exchange Corporation ( Corporación Bolsa Nacional de 
Productos Agropecuarios ), a private non-profit body established in 1986 under Executive Decree 
No. 1425,171 has been designated by the Ministry of Agriculture and Livestock as "the impartial body 
for recording imports and exports of rice and its by -products, [and] operations involving absorption of 
local purchases"172 (Chapter IV (1)(ii)).  Hydrocarbons, how ever, are transported from and to Ecuador 
by domestic shipping companies in which the State has a share of at least 51 per cent 
(Chapter IV (6)(iv)). 
170. State involvement in the production and supply of goods and services is significant.  There are 
approximately 60 State-owned companies, including PETROECUADOR, Flota Petrolera 
                                                      
166 Organic Law on Consumer Protection, Article 54. 
167 Executive Decree No. 17 , Official Journal 14, 4 February 2003, and Executive Decree No. 575, 
Official Journal 130, 22 July 2003. 
168 Executive Decree No. 191-A, Official Journal 44, 20 March 2003. 
169 Executive Decree No. 2257, Official Journal No. 503, 28 January 2002. 
170 Law to Promote and Control the Production and Marketing of Bananas, Article 8. 
171 Official Journal 347, 3 January 1986. 
172 Ministry of Agriculture and Livestock, Agreement No. 254, Article 1, Official Journal 408, 
10 September 2001. Ecuador WT/TPR/S/148/Rev.1 
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Ecuatoriana  (FLOPEC) and Transportes Aéreos Militares del Ecuador  (Chapter IV (3) and 
Chapter IV (6)(iv) and (6)(v)).  Th e State is also a shareholder in 67 other companies operating in 
very diverse sectors, including electricity, teleco mmunications, tourism, financial services, mining, 
agricultural products and miscellaneous manufactures. 
171. The Law on Modernization of the State, Privati zation and the Provision of Public Services by 
Private Enterprise173 was adopted in 1993 and lays down gene ral rules on the "de-monopolization and 
privatization of public services and State economic activities".174  Among other things the Law 
authorizes the State to delegate to semi-public or private companies the provision of public services:  
drinking water supply;  irrigation;  sanitation;  electricity;  telecommunications;  highways; port, 
airport and rail facilities;  postal services;  and other such services.  It also allows private or semi-
public companies to prospect for and exploit non-renewable natural resources.175 
172. The National Council for the Modernization of the State (CONAM), a body attached to the 
Office of the President of the Republic, was establi shed in order to ensure the fulfilment of the 
objectives set out in the Law on Modernization of the State.  CONAM conducted the concession procedures for the port of Esmeraldas and Guayaq uil Airport.  It has also carried out the 
modernization of the State-owned electricity and telecommunication companies (Chapter IV (5) and 
(6)(ii)), the Ecuadorian postal service, the Intern al Revenue Service and the Ecuadorian Customs 
Corporation (CAE).  However, attempts to transfer part of the State's share in companies operating in 
sectors such as electricity and telecommunications to  private entities have been unsuccessful, partly 
because of strong political opposition.  The State's current policy therefore seeks not to privatize all at 
once, but to hand over to privat e companies the administration of companies that are partly State-
owned. 
(v) Incentives 
173. Ecuador offers incentives mainly through its fr ee zone regime and other special customs 
regimes (sections (1)(iv) and (2)(iv)).  Other incentive schemes ar e described below. 
(a) Tax concessions 
174. Incentives offered under the Law on Tourism
176 to tourism projects approved by the Ministry 
of Tourism include:  exemption from the payment of taxes resulting from the incorporation of a 
company and other financial transactions, and from  taxes relating to the transfer of property 
ownership to the company;  duty-free importation of aircraft, boats and vehicles used for transporting 
tourists, for a specified period, provided there is no domestic production thereof;  and the possibility 
to deduct from income tax, within certain limits, exte rnal payments made to promote inbound tourism.  
These benefits are granted both to new tourism projec ts and to projects for the expansion of existing 
facilities.  New projects are granted benefits for a peri od of 10 years.  The projects must be located in 
economically underdeveloped rural ar eas and constitute touristic activ ities "which warrant accelerated 
promotion".177 
                                                      
173 Law No. 50, Official Journa l 349, 31 December 1993. 
174 Law on Modernization of the State, Article 5. 
175 Law on Modernization of the State, Article 41. 
176 Law No. 97, Official Journal/S uppl. 733, 27 December 2002. 
177 Law on Tourism, Article 34. WT/TPR/S/148/Rev.1 Trade Policy Review 
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(b) Loan programmes 
175. The number of loan programmes would appear to be limited.  The main institutions 
administering such programmes are the National Finance Corporation (CFN) and the National Development Bank (BNF). 
176. The CFN granted loans amounting to US$53.5 million in 2003 and US$67.4 million in 2004, 
for periods of between one and six years and with an nual interest rates of between 4 and 8 per cent.  
Slightly over half of the loans granted in 2003 went to trade and services.  The agricultural and 
manufacturing sectors each received one fifth of all loans. 
177. Between January and September 2004, the BNF granted loans amounting to some 
US$125 million, at annual interest rates of between 9 and 11 per cent.  Just over 50 per cent of the 
total was assigned to the agricultural sector.  One quar ter of the total went to  trade and around 10 per 
cent to small industries and to crafts. 
(c) Trade-related investment measures 
178. Ecuador informed the WTO that trade-relate d investment measures are published in the 
Official Journal.
178 
179. In April 1996, Ecuador notified the Compleme ntarity Agreement for the Automotive Sector 
as a trade-related investment measure inconsis tent with the provisions of the WTO TRIMs 
Agreement.179  Signed by Ecuador, Colombia and Ven ezuela in 1993, this agreement required 
domestic or foreign vehicle assembly enterprises in  the signatory countries to incorporate a minimum 
amount of local material in their vehicles.  At the time of notification, the subregional content 
requirement applied by Ecuador under the agreement was 35 or 40 per cent, depending on the type of 
vehicle. 
180. In September 1999, Ecuador, together with  Colombia and Venezuela, signed a new 
Complementarity Agreement for the Automotive Sect or.  The new agreement, which entered into 
force in January 2000 for a renewable 10-year peri od, lays down no subregional content requirements. 
(d) Aid for research, development and enhanced competitiveness 
181. The most recent available figures, which date  from 1998, show that research and development 
expenditure rose to just under 0.1 per cent of GDP - six times less than the average recorded for Latin 
America and the Caribbean.180 
182. No direct tax incentives are granted for r esearch and development.  The Science and 
Technology Programme, administered by the Sc ience and Technology Foundation (a private non-
profit organization) in conjunction with the Nationa l Secretariat of Science and Technology (attached 
to the Office of the Vice-President of the Republic), was implemented between 1996 and 2001.  
During that period the programme, which is f unded by the Inter-American Development Bank, 
granted loans amounting to US$10 million for technological innovation and modernization projects in 
                                                      
178 WTO document G/TRIMS/N/2/Rev.6, 16 July 1999. 
179 WTO document G/TRIMS/N/1/ECU/1, 2 April 1996. 
180 MICIP and UNIDO (2004), p. 85. Ecuador WT/TPR/S/148/Rev.1 
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five areas:  food, biomedicine, industrial process es, environment and natural resources and minerals 
and raw materials. 181 
183. The Autonomous National Institute of Agricultu ral Research (INIAP) is a public body which 
carries out research aimed at enhancing the compe titiveness of the agricultural sector.  The Ministry 
of Agriculture and Livestock has an Agricultura l Services Modernization Programme through which 
the research is funded (Chapter IV (1)(i)). 
184. Between 2002 and 2003, CORPEI administered the Programme for the ongoing improvement 
of the quality and competitiveness of small and me dium-sized enterprises.  During the programme's 
initial phase, US$600,000 in payments were granted by the World Bank.  The main beneficiaries were 
the timber sector, various manufactures and flower  growing.  At the beginning of 2003, CORPEI 
embarked on the second phase of the programme, wh ich had been allocated US$120,000 in funding 
by the MICIP.  Funds allocated under this programme are non-repayable. 
(vi) Government procurement 
185. Ecuador is not a party to the WTO Plurilate ral Agreement on Government Procurement.  
Ecuador offers no country preferential treatment in this area.  
186. The authorities estimate that in 2003 central government purchases of goods and services 
amounted to approximately US$700 million, or ar ound 10 per cent of the general State budget.  
Taking the public sector as a whole, purchases of goods and services amount to US$2,100 million. 
187. The general legal framework governing government purchases consists of the Law on 
Government Procurement182 and its regulations183, which apply to all public sector bodies except those 
governed by special laws, such as PETROECUADOR.  State-owned firms operating as public limited 
companies are not subject to the Law on Government Procurement, nor are procurement contracts for medical inputs, pharmaceutical products and surgic al equipment concluded by public bodies that 
provide health care services, or contracts the purpo se of which is to implement social communication 
activities.  Bodies created to provide public services or to develop State economic activities are subject to the Law on Government Procurement if they use public resources for their purchases. 
188. The Law on Government Procurement governs th e purchase of movable property and services 
(except consultancy services) and the procurement of public works.  It also lays down special 
procedures for the acquisition of immovable proper ty and the renting of movable and immovable 
property.  Procedures for the procurement of consultancy services are set forth in the Law on 
Consultancy Services
184 and its regulations.185  In the case of procurement that uses funds from loans 
granted by multilateral agencies, "the provisions of  the respective agreemen ts shall be observed".186  
In practice, these agreements reproduce the operative rules of the multilateral agency in question.  
Government procurement is decentralized, each purchasing entity carrying ou t its own transactions. 
189. There are no registers of approved suppliers for purchases of moveable property and services 
(excluding consultancy services) and the procurement of public works.   However, consultancy service 
                                                      
181 Central Bank of Ecuador (2002b), p. 23. 
182 Codification of the Law on Government Procurement, Official Journal 272, 22 February 2001. 
183 Executive Decree No. 2822, Official Journal/Suppl. 622, 19 July 2002. 
184 Law No. 15, Official Journal 136, 24 February 1989. 
185 Executive Decree No. 2544, Official Journal/Suppl. 557, 17 April 2002. 
186 Law on Government Procurement, Article 53 and Law on Consultancy Services, Article 18. WT/TPR/S/148/Rev.1 Trade Policy Review 
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providers wishing to conclude contracts with the Stat e must be registered in the Consultancy Services 
Register, which is open only to pe rsons affiliated to the Ecuadorian Association of Consultancy Firms 
(ACCE).187  Both natural and legal persons may join th e ACCE.  Natural persons (whether Ecuadorian 
or foreign) must submit copies of their academic qualifications recognized in  Ecuador under the Law 
on Higher Education, a document from a professiona l body certifying compliance with the respective 
law governing the exercise of the profession in question, a curriculum vitae , and particulars of their 
specialization and experience.  Companies must subm it their legal documents of incorporation and be 
established as partnerships in Ecuador.  The ACCE verifies in addition that partners in the company 
meet the same requirements as individual consultants. 
190. The Law on Government Procurement provides for the following procurement procedures: 
bidding by invitation, open calls for tenders, and dir ect contracting.  The first two methods consist in 
inviting interested parties to submit their bids.  In  the case of a bidding by invitation, offers may be 
submitted between 18 and 48 days from the date on whic h the invitation to bid is published.  Between 
12 and 24 days are given to submit offers in an ope n call for tenders.  The pr ocedure applied depends 
on the value of the purchase:  if the amount of th e purchase is more than 0.00004 times the annual 
State budget (approximately US$293, 738 in 2005), the authorities must apply the bidding by 
invitation procedure;  if the amount is below this  threshold, but more than 0.00002 times the annual 
State budget (approximately US$146,869 in 2005), an open call for tenders must be made.  In the case 
of purchases amounting to less than 0.00002 times the annual State budget, public entities may contract suppliers individually, in acco rdance with their internal regulations.
188 
191. There are three procurement procedures for contracts relating to consultancy services.  An 
open call for tenders is made when the value of the c ontract is equal to or mo re than 0.00004 times the 
annual State budget; if the value is below this thr eshold but more than 0.00001 times the annual State 
budget, then a restricted call for tenders is made.  A call for tenders is not required if the value of the 
contract is equal to or less than 0.00001 times the annual State budget.  Any interested party may respond to an open call for tenders.  Participation in restricted calls for tenders is limited to between 
three and six consultants, who must be invited in writing to submit their bids.
189  Both the Law on 
Government Procurement and the Law on Consultanc y Services prohibit the subdivision of contracts 
as a means of circumventing purchasing procedures. 
192. Where procurement is necessary to resolve a "serious emergency" or to safeguard national 
security, bidding by invitation or open call is not required.190  Also exempt from this requirement are 
contracts relating to the procurement of spare part s and accessories and artistic, literary and scientific 
works, contracts for procuring goods for which ther e is only one supplier or which involve the use of 
exclusive patents or marks, consultancy contracts which involve the use of specialized or wholly-
owned technology, equipment and pr ocedures, and "urgent" contracts where a bidding by invitation or 
open call process has been declared void under the Law on Government Procurement.191  I n  t h e  
context of the present review, the authorities indicat ed that instances have been noted of purchasers 
resorting to emergency procurement at their own discretion. 
193. The Law on Government Procurement does not  guarantee national treatment for foreign 
bidders.  The procurement committee of the procuri ng entity has the authority to decide whether to 
allow foreign bidders to participat e in bidding by invitation and open call.  The authorities indicated 
                                                      
187 Law on Consultancy Services, Article 41. 
188 Law on Government Procurement, Article 4. 
189 General Regulations replacing the Regulations of the Law on Consultancy Services, Article 29 
190 Law on Government Procurement, Article 6 and Law on Consultancy Services, Article 14. 
191 Law on Government Procurement, Article 29. Ecuador WT/TPR/S/148/Rev.1 
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that in the event of a committee decision to allow foreign bidders, then any foreign entity would be 
entitled to participate, even if it were not domiciled in Ecuador. 
194. In the case of contracts for carrying out works funded by another government, the Law on 
Government Procurement requires foreign comp anies to form partnerships with national 
companies.192  A company with foreign capital which is do miciled in Ecuador is treated as a national 
company for government procurement purposes and ma y therefore participate in invitation and open 
call processes that are open exclusively to national bidders.  Under Andean Community Decision 439, 
the principle of national treatment applies to the procurement of services by government agencies or 
public entities of the Andean Community member countries.193 
195. Article 26 of the Regulations of the Law on Government Procurement stipulates that "in 
projects that provide solely for domestically produced and supplied i nputs and services, the 
Procurement Committee shall ensure that pre-contra ctual documents are conducive to participation by 
domestic bidders". 
196. Foreign consultants may respond to a call for tenders only where the Consultancy Committee 
determines that no national consultant s have the requisite technical capacity and experience.  In that 
event, it is necessary to apply to the Consultancy Committee for a permit in order to hire a foreign 
consultant.  The Committee has 15 days in which to  issue a decision.  The Consultancy Committee is 
made up of public and private sector representatives and is responsible for setting the rules needed to 
enforce the Law on Consultancy Services.  Foreign c onsultants are authorized to participate in a call 
for tenders only if the Consultancy Committee issues a favourable decision.194  The authorities 
indicated that for practical reasons, consultants who are affiliated to the ACCE and registered in the 
Consultancy Services Register are cons idered to be national consultants. 
197. The purchasing authorities are responsible for setting adjudication criteria and ranking them 
in order of importance.  In the case of bids relating to moveable property, services (except 
consultancy services) and public works, the principles a nd criteria used to evaluate such bids must be 
included in the bidding documentation.  The Law on Government Procurement states that the main 
criterion for awarding contracts is that the bid be the "best suited to national and institutional 
interests".195  Nowhere does the legislation enlarge on th is, and the authorities have indicated that 
although the lack of a clear definition gives rise to different interpretations, the usual practice is to 
consider the lowest offer that meets all legal, technical and economic requirements to be the best 
suited to national and institutional interests.  Ther e are no legal provisions requiring the application of 
preference margins when assessing bids involving products of domestic origin. 
198. The Law on Consultancy Services stipulates that the following criteria are to be considered 
when choosing among bids: available technical  and administrative capacity; background and 
experience in carrying out similar work;  bac kground and experience of the personnel assigned to 
perform the contract;  work plan, proposed met hodology and proven knowledge of the general, local 
and specific conditions for implementing the project;  economic capacity and availability of the tools 
and equipment needed for the consultancy;  and, if  the bidding process is open to foreign companies, 
the procedures and methodologies to be used to en sure proper transfer of technology and maximum 
use of Ecuadorian professional technical capacity.196  Once all the bids have been assessed, and before 
                                                      
192 Law on Government Procurement, Article 53. 
193 Decision 439 of 11 June 1998, Article 4. 
194 General Regulations replacing the Regulations of the Law on Consultancy Services, Article 12. 
195 Law on Government Procurement, Article 26. 
196 Law on Consultancy Services, Article 26. WT/TPR/S/148/Rev.1 Trade Policy Review 
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the contract is awarded, all economic and contract ual aspects are negotiated with the highest-scoring 
bidder. 
199. The results of the bidding (whether by invitation or  open call) must be notified by the public 
entity to the bidders, but there is no legal requireme nt to inform unsuccessful bidders of the reasons 
for rejecting their bids.  Such reasons must be r ecorded in the minutes of meetings of the relevant 
government procurement committee. 
200. Public entities are not required to publish no tice of their intended purchases.  Bidding 
invitations or calls for tenders relating to mov eable property, services (except consultancy services) 
and public works must be published for three consec utive days in two national newspapers produced 
in different cities.  Bidding invitations or calls for tenders are published outside Ecuador when to do 
so is of "national and institutional interest".197  They must contain the following information:  the 
object of the procurement;  form of payment;  place where documentation can be obtained and 
proposals submitted;  registration fees;  deadlines fo r submitting bids;  and the date on which the bids 
are to be opened.  The technical specifications of the object of the procurement must not include 
characteristics exclusive to a particular  mark, patent or registered process.198  Bids made in response 
to bidding invitations and open calls to tender must  be in Spanish, although they may be accompanied 
by catalogues in another language. 
201. In the case of consultancy services, calls ar e published for two consecutive days in one or 
more national newspapers.  They must contain th e following information:  the name of the entity 
calling for bids and the object of the procurement;  the name of the proposed study and a description 
of its level and scope;  the type of bidding process and, in the case of restricted calls, a list of the 
consultants who are invited to bid;  the source of  financing;  the place where information on bidding 
conditions may be obtained; and the deadlines and conditions for the receipt of offers. 
202. Executive Decree No. 122 stipulates that all government bodies and agencies are to publish 
their bidding invitations and calls to tender in electronic form.199  Publication in electronic form is 
optional for other entities and for purchases involving amounts below the threshold set for open call 
bidding.  Contratanet, an online information servi ce on government procuremen t, was launched at the 
beginning of 2005.200  With the support of the World Bank, Ecuador has devised a project to convert 
Contratanet from an information to a transaction system. 
203. Under the Law on Government Procurement, bi dders may file complaints relating to the 
awarding of contracts with the procuring entity.201  They are required to provide a guarantee 
amounting to 7 per cent of the value of the bid.  The guarantee is enforced if the procuring entity finds 
the complaint to be malicious or unfounded.  The authorities pointed out that in view of this provision, bidders prefer to file complaints with the Office of the Comptroller General. 
204. Contracts awarded through bidding by invitati on or open call may not be concluded until the 
Comptroller General and the Attorney General have issued a report confirming compliance with the 
Law on Government Procurement, its regulations and the bidding conditions.  These reports are also 
needed for the signing of contracts which have not been awarded through bidding by invitation or open call, but which are worth more than the thr eshold set for open call.  An unfavourable report 
                                                     
 
197 Law on Government Procurement, Article 17. 
198 Law on Government Procurement, Article 16. 
199 Executive Decree No. 122, Official Journal 25, 19 February 2003. 
200 See http://www.contratanet.gov.ec. 
201 Law on Government Procurement, Article 72. Ecuador WT/TPR/S/148/Rev.1 
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precludes conclusion of a contract, in which case the relevant procurement committee may review the 
bids or call for a new process.  In 2004, arou nd 8 per cent of bidding processes received an 
unfavourable assessment. 
(vii) Intellectual property rights 
(a) Legal and institutional framework 
205. Ecuador has been a member of the World Intell ectual Property Organization since 1988.  It is 
also signatory to a number of agreements on intellectual property rights (Table III.8). 
Table III.8 
Participation in agreements on intellect ual property protection, December 2004 
Agreement Date of accession 
Paris Convention for the Protection of Industrial Property (1883) 22 June 1999  (Ecuador is party to the Stockholm 
Act) 
Berne Convention for the Protection of L iterary and Artistic Works (1886) 9 Oct ober 1991 (Ecuador is party to the Paris 
Act) 
Patent Cooperation Treaty  (1970) 7 May 2001 
Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations 18 May 1964 
Geneva Convention for the Protection of Producers of Phonograms Against  
Unauthorized Duplication of their Phonograms  14 September 1974 
WIPO Copyright Treaty 6 March 2002 
WIPO Performances and Phonograms Treaty 20 May 2002 
     
Source : WTO Secretariat, on the basis of information from the World Intellectual Property  Organization, "Contracting 
Parties or Signatories to Treaties Administered by WIPO ".  Available on-line at:  h ttp://www.wipo.int/treaties/en.  
 
206. The Agreement on Trade-Related Aspects of Inte llectual Property Rights (TRIPS) has been in 
force in Ecuador since 28 June 1996.  It was incorpor ated into domestic legislation by ratification of 
the Marrakesh Agreement.  There are, however, a number of other statutes governing intellectual 
property, including the Law on Intellectual Property and some Andean Community Decisions.202  
Pursuant to the provisions of the TRIPS Agreement, Ecuador has notified this legislation to the WTO.  
It covers the main areas referred to in the TRIPS Agreement (Table III.9). 
                                                      
202 Law on Intellectual Property, Official Journal 320, 19 May 1998;  Decision 345 of 21 October 1993 
regarding common provisions on the protection of the rights of breeders of new plant varieties;  Decision 351 of 17 December 1993 regarding common provisions on copy right and neighbouring ri ghts;  Decision 391 of 
2 July 1996 on the common regime for access to genetic reso urces;  and Decision 486 of 14 September 2000 on 
the common industrial property regime. WT/TPR/S/148/Rev.1 Trade Policy Review 
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Table III.9 
Overview of the protection of inte llectual property rights, July 2004 
Coverage Term of protection Selected exclusions and limitations 
Copyright and related rights 
All intellectual works in the literary or 
artistic field, regardless of their nature, form 
of expression, merit or purpose, including 
computer programmes;  related rights include economic rights in respect of public 
communication of performers, producers of 
phonograms and broadcas ting organizations Lifetime of the author plus 
70 years (copyright) and 
70 years from 1 January of 
the year following the year in which the performance, 
publication, broadcast or 
transmission took place Ideas contained in the works, processes, operating 
methods or mathematical concepts as such; systems or 
ideological or technical conten t of scientific works, legal 
and regulatory provisions, judicial decisions and records, agreements, deliberations a nd decisions by public bodies. 
Patents  
All inventions, whether products or 
processes, in any field of technology, 
provided that the invention is new, involves 
an inventive step and is industrially applicable 20 years from filing date of 
application;  non-
extendable Discoveries, scientific theories and mathematical 
methods;  any living thing, either complete or in part, as 
found in nature, natural biological processes,  such 
biological material as exists in nature or is able to be separated, including the genome or germplasm of any 
living thing;  literary and artistic works;  plans, rules and 
methods for the pursuit of intellectual activities, games or economic and business activities;  computer programmes 
and software, as such; methods for presenting 
information;  inventions w hose commercial exploitation  
must be prevented in order to protect public order or 
morality;  inventions whos e commercial exploitation 
within the respective member country must be prevented 
in order to protect human or animal health or life, or to protect plant life or the environment;  plants, animals and 
essentially biological pro cesses for the production of 
plants and animals other than non-biological or microbiological processes;  therapeutic or surgical 
methods for the treatment of humans or animals, as well 
as diagnostic methods app lied to human beings or 
animals.  The granting of patents relating to inventions 
developed from materi al obtained from the 
abovementioned heritage or  knowledge is conditional 
upon this material being acquired in accordance with 
international, community and domestic law. 
 
Industrial designs 
Any particular new appearance of a product 
that results from any arrangement of lines or 
combination of colours, or any two-
dimensional or three-dimensional outward 
shape, line, outline, form, texture or material, without the intended use or purpose of the 
said product being thereby changed. 10 years from filing date of 
application;  non-
extendable.   Industrial designs whose commercial exploitation within 
the territory of the member country where registration is 
being applied for must be pr evented in order to protect 
morality or public order;  industrial designs whose 
appearance was dictated essentially by technical or functional considerations and that fail to incorporate any 
arbitrary contribution by the designer;  industrial designs 
that consist only of a form the exact reproduction of which proved necessary in orde r to permit the mechanical 
assembly or connection of the product incorporating the 
design with another product of which it is a part.  This restriction shall not apply where the design assumes a particular form to allow for the assembly or multiple 
connection of the products or their connection within a 
modular system. 
Utility models 
Any new form, configuration or arrangement of elements of any device, tool, instrument 
or mechanism or other object or any part 
thereof that enable it to function or be manufactured better or differently or that 
give it a use, advantage or technical effect 
that it did not previously have. 10 years from filing date of 
application; non-
extendable. In addition to the exclusions  listed for patents:  three-
dimensional works, architectural works and objects of a 
purely aesthetic nature. 
Table III.9 (cont'd) 
 
 Ecuador WT/TPR/S/148/Rev.1 
 Page 71 
 
 
Coverage Term of protection Selected exclusions and limitations 
Layout-designs (topographies) of integrated circuits 
Original layout-designs of integrated circuits 
(the three-dimensional arrangement, 
however expressed, of the elements, at least one of which is an active element, and the 
interconnections of an in tegrated circuit, as 
well as such a three-dimensional arrangement prepared for an integrated 
circuit intended for manufacture).  10 years from the date 
when the layout-design 
was first exploited anywhere in the world.  
Protection of a registered 
layout-design shall in any event lapse 15 years from 
the last day of the year in 
which it was created. None 
Trademarks 
Signs that are sufficiently distinctive and 
capable of graphic representation; 
commercial slogans, provided they contain 
no references to similar products or marks or expressions that might adversely affect such 
products or marks. 10 years from date of 
issue;  extendable for 
periods of ten years. Signs that are likely to misl ead commercial circles or the 
public as to the nature, origin, method of manufacture, 
characteristics, or suitability  for use of the products 
concerned, or that  give  a functional or technical 
advantage to the product to which they apply;  signs that 
could be used in trade to qualify or describe a 
characteristic of the product concerned; geographical indications;  signs which consist of the name of a 
protected plant variety;  signs which are contrary to 
morality or public order or which violate the rights of third parties, including those which are similar to a well-
known or highly renowned sign.   
Trade names 
Signs or names which identify a business or  an economic activity. The exclusive right to a 
trade name is acquired 
through its first commercial use and ends 
when use of the name 
ceases or when the activities of the 
undertaking or 
establishment that uses it cease. Signs or names likely to be conf used with others that have 
been used previously. 
Designations of origin 
"Designation of origin" means a geographical indication consisting of the 
name of a country, a region or a particular place or of a name which, without being that 
of a country, a region or a particular place, 
relates to a particular geographical area, serving to designate a product originating 
therein whose quality, reputation  or other 
characteristics are due exclusively or essentially to the geographical environment 
in which it is produced, including natural 
and human factors. Indefinite, as long as  the 
initial conditions on the 
basis of which protection was granted prevail. Indications which are contrary to morality or public order 
or those which are likely to mislead the public as to the 
origin, nature, method of manufacture, characteristics or qualities of the products con cerned; common or generic 
terms. 
Undisclosed information 
Undisclosed information relating to commercial or industrial secrets or any other 
type of information that is confidential 
insofar as it is secret, has commercial value 
and is subject to reasonable measures that have been adopted to keep it secret by the 
person  who controls it by law; technological 
knowledge including manufacturing and production processes in general, and 
knowledge relating to the use and 
application of industrial techniques resulting from  the confidential knowledge, 
experience or intellectual skill  that allows a 
person to maintain or obtain a competitive or economic advantage over third parties.  Indefinite, as long as the 
conditions ensuring 
protection prevail.  In circumstances where it is  necessary to protect the 
public and where necessary measures are adopted to 
ensure that data are protected against unfair commercial 
use, test data or other undisclosed information submitted 
within the context of an application for marketing 
approval for pharmaceutical products or agricultural 
chemical products which use new chemical-producing 
chemical entities are not protected 
Table III.9 (cont'd) WT/TPR/S/148/Rev.1 Trade Policy Review 
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Coverage Term of protection Selected exclusions and limitations 
New plant varieties  
Cultivated genera and species of plants 
associated with the inheritable improvement 
of plants, as long as the varieties are new, distinct, uniform and stable and have been 
given a denomination that constitutes their 
generic designation. 25 years from filing date of 
application in the case of 
vines and forest and fruit trees;  20 years for all other 
species. Wild species not improved by man. 
  
Source:  WTO Secretariat 
 
207. In December 1998, the TRIPS Council reviewed legislation relating to intellectual property 
rights.  Ecuador received and replie d to questions from two delegations203; most of the questions 
referred to copyright and the enforcement of intellectual property rights. 
208. Ecuador notified the WTO that the Ecuadorian In tellectual Property Institute (IEPI) is the 
contact point established for the purposes of Article 69 of the TRIPS Agreement.204  The IEPI was set 
up under the Law on Intellectual Property to foster  the protection of intellectual property rights, 
promote intellectual creation and the disseminati on of technological knowledge in Ecuador and 
prevent "actions and deeds which may endange r intellectual property and free competition".205 
209. The holder of a patent, utility model, industrial design registration, layout-design registration, 
mark or plant breeder's right may not, subject to certain limitations, prevent the import of protected 
goods that have been marketed in another country with the consent of their legitimate right holder.206  
Parallel imports of goods protected by a patent , utility model, industrial design registration, 
layout-design registration or mark are therefore permi tted.  A copyright holder, however, is authorized 
to prohibit the import of protected goods into Ecuador.207  Therefore, parallel imports of products 
protected by copyright or industrial design registrations are not permitted. 
210. A party may apply to the National Directorat e of Industrial Property of the IEPI for a 
compulsory licence "principally for the industrial ma nufacture of the product covered by the patent or 
for the full use of the patented process" only if, after a period of three years following the patent grant, 
or four years following the patent application, whic hever is longer, at the time of the request the 
patent had not been exploited in Ecuador, or if the exploitation of the invention has been suspended 
for more than one year.  Licences will not be granted if  failure to exploit a pate nt or invention is due 
to force majeure or unforeseen circumstances.  The applicant must prove that his efforts to obtain 
authorization from the right holder "on reas onable commercial terms and conditions" were 
unsuccessful "within a reasonable period of time".208  The licensee is required, at the risk of having 
the licence revoked, to exploit the invention w ithin two years from the grant of the licence. 
                                                      
203 The questions put to Ecuador by the European Union and Japan are listed, respectively, in WTO 
documents IP/C/W/112/Add.1, 26 October 1998, and IP/C/W/111, 30 September 1998.  Ecuador's replies can be 
found, respectively, in WTO documents IP/C/W/116, 16 November 1998, and IP/C/W/116/Add.1, 30 November 
1998. 
204 WTO document IP/N/3/Rev.7, 19 August 2003. 
205 Law on Intellectual Property, Article 346. 
206 Law on Intellectual Property, Articles 149, 181 and 219.  Andean Community Decision 486, 
Articles 54, 85, 131, 101 and 158.  Andean Community Decision 345, Article 27. 
207 Law on Intellectual Property, Articles 24 and 171. 
208 Andean Community Decision 486, Article 61. Ecuador WT/TPR/S/148/Rev.1 
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211. Moreover, Andean Community Decision 486 au thorizes the State to grant compulsory 
licences following a declaration of the existence of  public interest, emergency or national security 
considerations.  In such cases, before granting the compulsory licence the IEPI must notify the patent 
holder "as soon as is reasonably possible".  The deci sion to grant a compulsory licence must specify 
the period for which it is granted, the purpose of the licence, the amount of the royalties to be paid and 
the payment conditions.  The granting of a compulsory  licence for reasons of public interest does not 
diminish the patent holder's right to continue exploiting the patent.209 
212. Under Andean Community Decision 486, the IEPI may,  either ex officio or at the request of a 
party, and after having obtained the consent of th e national anti-trust authority, grant compulsory 
licences where practices are noted that are detrimen tal to the exercise of free competition, especially 
where they constitute an abuse by the patent  holder of a dominant position in the market.210 
213. A compulsory licence may also be granted if it is applied for by the holder of a patent which 
requires the use of another patent in order to be exploited and if the said holder has been unable to 
secure a contractual licence on reasonable terms.  Fo r the licence to be granted, the invention claimed 
in the second patent must involve an important  technological advance of considerable economic 
significance in relation to that claimed in the first.  Moreover, the holder of the first patent is entitled 
to a cross-licence on reasonable terms to exploit the invention claimed in the second patent.  The 
licence relating to the first patent is unassignable except with the assignment of the second patent.211 
214. Compulsory licences are non-exclusive and no sublicences may be granted.  Compulsory 
licences may not be transferred except with the pa rt of the company or its intangible assets that 
enables them to be exploited industrially; the transf er shall be evidenced in writing and registered with 
the IEPI.  They may be revoked if the circumstance s on the basis of which they were issued cease to 
exist and are unlikely to recur.  Their scope and duration shall be defined by the purposes for which 
they are granted.  Compulsory licences must provi de for payment of adequate remuneration according 
to the circumstances of each case, taking into accoun t the economic value of the licence.  They must 
be used for the purposes of supplying the domestic market.212 
215. In the context of the present review, the author ities indicated that Ecuador has never granted a 
compulsory licence. 
216. With regard to new plant varieties, the State may declare the "free availability" of a protected 
plant variety in exceptional circumstances relating to  national security or public interest.  According 
to the authorities, there has never been recourse to this provision in Ecuador. 
217. Ecuador, in conjunction with other WTO Member s, has made two written submissions to the 
TRIPS Council on the relationship between the TR IPS Agreement, the Convention on Biological 
Diversity and the protection of traditional knowledge.213  The most recent of these submissions 
presented arguments for introducing a provision into  the TRIPS Agreement which "mandates patent 
applicants for inventions that use biological r esources and traditional knowledge, to disclose the 
source of origin of such resources and knowledge, as well as provide evidence that they have obtained 
the necessary prior informed consent (PIC) and co mplied with national laws on benefit sharing".  
                                                      
209 Andean Community Decision 486, Article 65. 
210 Andean Community Decision 486, Article 66. 
211 Andean Community Decision 486, Article 67. 
212 Andean Community Decision 486, Article 67. 
213 WTO documents IP/C/W/356, 24 June 2002, and IP/C/W/403, 24 June 2003. WT/TPR/S/148/Rev.1 Trade Policy Review 
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Ecuador made a further submission to the TRIPS Council in which it raised a number of concerns 
about the settlement of intellectual property disputes.214 
(b) Enforcement 
218. Information regarding the enforcement of inte llectual property rights in Ecuador can be found 
in Ecuador's replies to the Ch ecklist of Issues on Enforcement.215  The Law on Intellectual Property 
stipulates that the violation of any of the intellect ual property rights established therein shall give rise 
to civil, administrative and, if the act has been categorized as an  offence, criminal proceedings.216  
Civil remedies include forfeiture and destruction of  the infringing goods, seizure of the equipment and 
other means used to produce and store them and payment of damages.217  The IEPI may impose 
various administrative remedies, including insp ection, requests for information, and fines.218  Penalties 
which may be imposed in criminal proceedings in clude fines, imprisonment and the forfeiture and 
destruction of the infringing goods.219  The Law on Intellectual Property also provides for provisional 
measures, which both the administrative and the judicial authorities may apply.220 
219. Article 342 of the Law on Intellectual Property s tipulates that customs officials "are under the 
obligation to prevent the import or export of produc ts which in any way violate intellectual property 
rights".  This requirement is applied irrespective of the origin of the goods.  Proceedings may be 
initiated by order of the IEPI, in response to an individual complaint or at the initiative of the customs authority.  Andean Community Decisions 486, 345 and 351 likewise stipulate the administrative and judicial remedies that are available to intellectual property right holders.  They include definitive and 
precautionary measures, border measures and f iling for damages and to reclaim rights.   
 
                                                     
 
214 WTO document IP/C/W/385, 30 October 2002. 
215 WTO document IP/N/6/ECU/1, 27 November 1998. 
216 Law on Intellectual Property, Article 288. 
217 Law on Intellectual Property. Article 289. 
218 Law on Intellectual Property, Articles 335, 337 and 339. 
219 Law on Intellectual Property, Chapter III. 
220 Law on Intellectual Property, Articles 305 and 336.