To give protection to Ecuadorian manufacturers, the EC government imposed new tariff surcharges in early 2015. Most of the 1,392 products affected by the surcharges had tariff increases of 45 percent this year.
The Cuenca Highlife website reports that those products will see a reduction of surcharges to 40 percent in January 2016 .. 26.7 percent in April .. 13.3 percent in May .. and the surcharges will be completely dropped in June.
Imports affected by the tariff surcharges include wine, food, clothing, electronics, machinery, cosmetics, cars and other products.
Source... www.cuencahighlife.com
cccmedia in Quito
Price Break Coming On Imported Goods: Say Goodbye to the 2015 Tariffs
cccmedia
26 November 2015 05:34:14
10194
mugtech
26 November 2015 13:01:07
4347
cccmedia wrote:To give protection to Ecuadorian manufacturers, the EC government imposed new tariff surcharges in early 2015. Most of the 1,392 products affected by the surcharges had tariff increases of 45 percent this year.
The Cuenca Highlife website reports that those products will see a reduction of surcharges to 40 percent in January 2016 .. 26.7 percent in April .. 13.3 percent in May .. and the surcharges will be completely dropped in June.
Imports affected by the tariff surcharges include wine, food, clothing, electronics, machinery, cosmetics, cars and other products.
Source... www.cuencahighlife.com
cccmedia in Quito
So the new idea on such imports is hold out until June, then one would expect a big uptick in same.
EvaCanada
26 November 2015 13:57:10
34
So really not much savings from January till April as reduction on 45% surcharges will be only 5%.
MGLuke
26 November 2015 15:00:42
133
When was the last time the US dropped taxes by 40%? I think it is great news.
mugtech
26 November 2015 15:16:26
4347
MGLuke wrote:When was the last time the US dropped taxes by 40%? I think it is great news.
They are dropping tariffs back to the level they were a year ago, not really a tax reduction. It's like retail doubles prices and then gives you 50% off the new price. You are right back where you started.
EvaCanada
26 November 2015 15:44:23
34
If I recall correctly tariffs were imposed at the beg of 2015 to last 18 months and to be reviewed by WTO, as it stands now they are still in effect for 18 months only reduction is about 5% till April then about 19% and so on, but great news nevertheless for us living in Ecuador.
Volkhard
07 December 2015 13:26:50
3
Probably the gouvernment found out it really didn't create the windfall they hoped for. I do not believe the reasoning of protecting the local manufacturers. Ecuador is desperate for money and thought to generate a quick buck or two.
But instead reaping in 45% extra of mostly consumer goods, the consumers did what every reasonable economist would have predicted they stopped buying. In this case it not only means 45% of nothing but also minus 12% of salestax on an item that might have been bought at a regular price.
Protection of Ecuadorian manufacturers:
Okay all these ecuadorian companies making cellphones, computers, TV needed a break from the foreign competition..... In my case, I was importing German PVC material and window hardware, also something that is not produced here in Ecuador, but my tariffs went up never the less.......
Now I am planing to leave Ecuador and have a whole PVC window shop with all machines to sell in Manabi. I am not leaving because good (not chinese) PVC windows and doors are a bad business (to the contrary it will boom over the next years) but because I simply lost trust into the administration. Somebody interested to buy a complete small factory?
Taking the additional tariffs back in steps in just a way to make it look all planned and finetuned.
I have no high hopes that all the prices that have gone up because of the tariffs will come down again.
The damage for the trade and industries is done, some did close or are closing, others had to reduce the workforce and most suffered a bottomline profit reduction trying to make due with the added cost of doing business. Yes, taking these tarrifs back is a good thing, but they shouldn't have impossed in the first place. Generating more needed money for the empty pockets of the country: stop the corruption and raise the salestax for real and instant added revenue. Corruption will stay and flourish but the salestax will eventually raised up.
Just my $0.02 about the current situation and why I am not celebrating "tax reduction".
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