Imports from Ecuador by 4x4 regime generate US $ 60 million annually
Published on 06 September 2019
The facilities to bring consumer goods to relatives from abroad have made it possible to boost the flow.
Ecuador is a country with a dollarized economy and based on the production of raw materials. While this is not a good thing or a bad thing in itself, beyond the restrictions that come from not having a monetary policy and absorbing everything that happens from the US Federal Reserve when deciding what to do with the greenback, it is true that there are facilities to take advantage of foreign exchange for the benefit of consumers.
Along these lines, the Ecuadorian government has provided facilities for importing products worth less than US $ 400 and weighing less than 4 kg. A single tariff of US $ 42 is applied to these shipments, with an annual limit of 12 shipments and US $ 2,400 over a similar time horizon.
In this way, migrants have been able to supply their relatives with products that are more expensive or scarce in their homeland. The following table shows the main products of low unit value imported from the two main origins of goods introduced under the regime.
In general, the evolution of the commercial flow from the most representative countries of the regime, the United States and Spain, has been positive. As expected, the offer from the United States incorporates technological products as a distinctive element, while in the case of Spain, the gastronomic part is important due to the greater tradition of its ingredients. On the other hand, both origins share the characteristic of being a source of medicines and books.
But the category that attracts the most attention is that of expedited offices. It is here that a large number of errands are concentrated, including clothing, food products and all kinds of items associated with gifts. In general, Ecuadorians have taken advantage of the benefits of the regime, although they have an annual ceiling that might seem low if one considers that a piece of art or a musical instrument can easily exceed US $ 3,000.
As for the means of transport used, the participation of the airway stands out, which is usually much less representative compared to the sea. Among other things, one of the reasons for using it is the use of expedited mail dispatches. In the following tables, you can see the distribution detail.
In general, any tariff reduction benefits the consumers of a country, which are the main mass of beneficiaries. The case of the 4x4 can be a first step to continue the process of opening Ecuadorian trade with the rest of the world, which could contribute significantly to the development of the country.
For more information on imports from Ecuador, you can enter the Veritrade portal.
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