Informal Trade Practices The case of Ecuador

World Customs OrganizationBrussels, June 2014

Ecuador and the Andean Community

The Andean Community Trade

has no tariffs.

FTA (Free Trade

Agreement): USA

FTA: China and USA

2012 2013 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

138,263 198,271

2,050,965 2,162,578

922,552 995,083

Imports EC CAN

Bolivia Colombia Perú

2012 2013 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

22,167 23,348

1,054,875 913,048

1,989,346 1,883,183

Exports EC CAN

Bolivia Colombia Perú

Jan-Dec Jan-Dec Variation

2012 2013 (%)

Grand Total 137 991 134 478 -2,5

Bolivia 11 606 11 444 -1,4

Colombia 58 687 58 526 -0,3

Ecuador 23 724 24 966 5,2

Perú 43 975 39 542 -10,1

EXPORTER COUNTRY

EXPORTS FROM ANDEAN COMMUNITY TOWARDS WORLD

(Millions of US Dollars)

Jan-Dec Jan-Dec Variation

2012 2013 (%)

Grand Total 10 349 9 742 -5,9

Bolivia 1 194 1 259 5,4

Colombia 3 741 3 392 -9,3

Ecuador 3 066 2 820 8,0

Perú 2 348 2 171 -3,3

EXPORTS BETWEEN A COUNTRY-MEMBER AND THE ANDEAN COMMUNITY

(Millions of US Dollars)

EXPORTER COUNTRY

Ecuador and the Andean Community: North Border (Colombia)

Ecuador and the Andean Community: South Border (Perú)

Culture of Informality

Corruption Impunity

Policies and Trade Agreements

Free Mobility

Socio-economic Factors

Causes and Incentives for Contraband

Legal Aspects

Customs Controls

Social Development

Institutional Strengthening

Technology

Strategies Implemented to Combat Contraband

Sensitive Goods for Contraband

Alcoholic beverage Clothing

Cellphones

Footwear

Fruits and Vegetables

Tax burden close to

130%

Quota restrictions

associated with environmental

issues

ADV: 10% + 6 USD per pair

Price differential compared to neighboring

countries

ADV: 10% + 5.5 USD per Kg

X RAY Machine

Strengthening the Customs Laboratory

Tagging in Origin

(Alcoholic Beverage)

Mandatory Registration of Imported Cellphones

1800-Delito Program

Emblematic projects for combating Contraband

Development Actions and Institutional Transformation

• Over 1600 trained customs officers

• Over 36 hours of training per customs officer

• Implementation of the Code of Ethics

• More than 180 published and documented processes at www.aduana.gob.ec

• 100% compliance Organic Law of Transparency and Access to Information (LOTAIP)

Human Resource and Knowledge Management

Institutionality

Operational Efficiency Achieved: 2007-2013

Total collection: 2000-2006: 9.616 M 2007-2013: 21.083 M

Average time: 2000-2006: 15 days 2007-2013: 7,91 days

Days

Mill

ions

of U

S D

olla

rs

Non-Customs Strategies

Improving productivity of perishables (fruits and vegetables)

Implementation of trade strategies

Improving the quality of information provided by other institutions

The Army should assist the task of Customs in not enabled points

Implementation of Electronic Frontier Plan

Maintaining the balance between facilitation and customs control.

To position SENAE as a global leader in the customs processes.

Strengthening border controls through the development and implementation of strategic areas: physical infrastructure,

technological infrastructure, equipment.

Promoting civic culture against contraband.

Present and Future Challenges

Thanks for your attention!

Econ. XAVIER CARDENAS MONCAYODirector GeneralNational Customs Service of Ecuador SENAEWeb Site: www.aduana.gob.ecPbx: 5934-500-6060  ext. 1009 Guayaquil – Ecuador