Ecuador has imposed a range of tariff and non-tariff restrictions on trade in goods and services over the last decade. Besides import tariffs, Ecuador uses the Andean Price Band System (APBS) for agricultural products, a consumption tax for “luxury” goods and services, compound tariffs on textiles and other goods, and value-added taxes (IVA) for specific services described below.
The Ministry of Health must issue prior authorization (i.e., sanitary registration or notification) for imports of processed foods, food ingredients, and beverages, as well as cosmetics, pharmaceutical products, reagents, natural products, and pesticides. There are several products that require a standards certification. For more information on standards, please review the standards section below.
To protect local production, “Consultative Committees” can influence decisions on agricultural imports that the Government of Ecuador considers “sensitive products.” The committees, composed of local producers, local industry, importers, and Ministry of Agriculture officials, often advise against granting import authorizations of products such as corn, dairy, and meats, among others. In addition, the Consultative Committees determine the local buying price, usually higher than international prices, at which local industry will buy the local production. The Government of Ecuador requires the purchase of all local production before it allows agricultural imports.
Ecuador maintains bans on the import of used motor vehicles and spare parts, tires, and clothing. Ecuador permits the import of used, special-purpose vehicles, such as ambulances, mobile clinics, street sweepers, and fire trucks, as donations.
Imports of psychotropic medicines and certain precursor chemicals used in narcotics processing require prior authorization from the National Agency of Sanitary Control and Vigilance (ARCSA). Imports of weapons, munitions, explosives, armored vehicles, ships, and other related equipment require prior authorization from the Ministry of National Defense.
In April 2023, then-President Lasso issued Decree 707 that allowed civilians to carry weapons for personal defense, provided they obtain a permit and meet several requirements. A ministerial agreement updated the requirements, controls, and permits for importers. Additionally, in January 2023, the Ecuadorian government made a significant reduction in the special consumption tax for firearms, sports weapons, and ammunition from 300 percent to 30 percent. The Law on Weapons, Ammunition, Explosives and Related Materials, which regulates the manufacture, import, export, transit, commercialization of weapons, ammunition, explosives, fireworks, biological agents, and other related materials, entered into force in November 2024. It establishes general requirements for registration, traceability, and permit obligations for the internment and possession of firearms.