The Minister of Foreign Trade, Diego Aulestia, and the Coordinating Minister of Production, Nathalie Cely, announced that the Committee for Foreign Trade (COMEX), at its meeting on Friday March, 20, approved the Resolution that puts into effect the simplified procedure for the refund of foreign trade taxes -drawback-, pursuant to provisions of Executive Decree 607, published in Official Register 459, last March, 16.

Through this procedure, refund of up to 5% of the total value of foreign trade taxes of exports will be applied, excluding products considered as non-traditional (banana, coffee, cocoa, shrimp, tuna and fish); some of which are included through a temporary mechanism that considers, for example, a tax refund for banana, depending on its target market, case in which the percentage reaches 4%, and 3% for tuna.

For implementing this process, the Government has allocated a budget of 250 million dollars to support export activities.

“The President (Rafael Correa) had announced the activation of a support measure for exporters. These are elements that are part of a more comprehensive strategy; this is not just to decrease the volume of imports but to generate increased foreign exchange for the Ecuadorian economy.”

Minister Aulestia also mentioned that this measure has been discussed with private sector representatives, while affirming that the Organic Code of Production (COPCI) provides that the State shall promote export-oriented production, among other mechanisms, through “the total or partial conditional tax refund paid on imports of inputs and raw materials incorporated in products to be exported (…)”. He further stated that this mechanism, known as ”drawback,” is part of international regulations, duly stipulated by the World Trade Organization (WTO).

The Minister of Foreign Trade insisted that they will continue working to deepen and activate the development of exportable supply.

On the other hand, he reported that during his visit to Brussels this week, he will meet with officials from the European Union (EU) to explain the reasons why the safeguard measure was applied for BOP. “We are sure that they will understand, as we have all the elements for them to do so. In addition, he will ratify the interest that Ecuador has to move forward with the process of Agreement with the European Union, and thus materialize permanent access to the European market.