July 20, 2008
Quito
The measure decided by the COMEXI applied on goods and raw materials for agriculture.
The last Thursday night, the Executive Committee of the Board of Foreign Trade and Investment (COMEXI) resolved the tariff reduction of 327 subheadings for raw materials and capital goods, in order to generate greater competitiveness in the agricultural and industrial sectors.
Last Wednesday, in another meeting, the resolution amounted to 282. Of the 327 present, 95% will benefit from tariff 0 and the rest has been reduced to the rank of taxes between 10% and 5%. This is the fifth tariff reform which implements the scheme in external trade.
Thus, 2,400 subheadings enter without paying taxes, a total of 7,229 articles that the country imports, or about 33%. However, according to the total volume of imports from the country, the new exemption means that "50% of the value of our imports will come with 0 tariff," said Undersecretary of Commerce, Alexis Valencia.
The main assets are exempt active ingredients for fertilizers, herbicides, fungicides, anti-germination and plant growth regulators, plastic containers, irrigation accessories, textile fibres, fishing nets, picks, rakes, wires, and scissors to scythe power.
The measure will come into force next week, since it enlists the decree of the case. Valencia also stressed that talks with local manufacturers of agricultural tools that could be affected.
Figures
$ 30
Millions. The fiscal impact of this tariff reduction will reach this amount annually.
20
Items. Exemptions to this number of items could affect local manufacturers.
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