Ecuador’s Regimen 20 establishes the regulatory framework for the temporary entry, for up to one year, of items used for demonstrations or trade fairs and special projects. For public tenders, temporary entry is allowed for the term of the contract, and in some cases, the time period may be extended. During this period, the obligation to pay taxes and duties is suspended on condition that the goods are re-exported. Commodities may also be nationalized upon payment of the required taxes and duties on the Cost Insurance Freight (CIF) value of the goods.
The equipment required for assembly operations can also be imported duty-free, although a bond must be posted. Import permits are not required. Special labor regulations apply to companies operating under this system. According to Ecuadorian import regulations, when goods are temporarily exported for repair, the applicable import duties are only applied on the value added to the original merchandise, i.e., new or reconditioned spare parts. The Ecuadorian National Customs Service (SENAE) will mark goods temporarily leaving the country to identify them upon their return.
In February 2024, SENAE issued the Foreign Trade Operator’s Guide for Temporary Admission of goods for re-export in the same state and cost, which establishes the procedure foreign trade operators need to follow using SENAE’s digital platform.