Quick answer
When importing a machine into Ecuador you pay, on the CIF value (cost + freight + insurance), the tariff for its product code, the 0.5% FODINFA levy and then 15% VAT on all of the above. For a $10,000 FOB machine with a 5% tariff, taxes come to about 21% of the CIF value.
The price the Chinese manufacturer gives you is not what the machine ends up costing. You have to add freight, insurance and customs taxes, which in Ecuador are paid before you can collect the goods. Here's what you pay and how it's calculated.
The base: the CIF value
Almost all taxes are calculated on the CIF value, which is the sum of three things: the cost of the machine (FOB), international freight and insurance. That's why expensive freight also pushes up your taxes.
The taxes you pay
- Tariff (ad valorem): a percentage of the CIF value that depends on the product's tariff code. For many machines and capital goods it is low and can even be 0%, but it has to be checked product by product.
- FODINFA: 0.5% of the CIF value. A fixed levy paid on almost every import.
- ICE (special consumption tax): only for certain products such as spirits, cigarettes or some vehicles. It doesn't normally apply to machinery.
- VAT: 15%, calculated on CIF plus the tariff, FODINFA and ICE. In other words, you also pay VAT on the other taxes.
A worked example
Let's take a machine at $10,000 FOB, with $1,200 freight and $100 insurance, and a tariff code with a 5% duty. The duty rate is just an example; yours depends on the product.
- CIF value: $10,000 + $1,200 + $100 = $11,300.
- Tariff 5%: $565.
- FODINFA 0.5%: $56.50.
- 15% VAT on $11,921.50: $1,788.23.
- Total taxes: $2,409.73, or about 21% of the CIF value.
If your business has a RUC and files VAT returns, the import VAT can usually be used as a tax credit. Confirm it with your accountant, because it changes the real cost a lot.
Costs that aren't taxes but you still pay
- The customs broker's fees.
- Storage at the port while the paperwork is done. If it drags on, it goes up.
- Transport from the port to your business.
- Permits from other agencies, if the product needs them.
How to avoid surprises
The most important thing is to identify the correct tariff code before you buy. With it you know the exact duty and whether permits are needed. A classification mistake can mean overpaying, fines or having the machine held at the port.
Read also: How to import equipment from China, step by step →
Frequently asked questions
What value are import taxes calculated on?
On the CIF value: the price of the goods plus international freight and insurance.
What is import VAT in Ecuador?
15%, calculated on CIF plus the tariff, FODINFA and ICE if it applies.
Can import VAT be recovered?
If your business has a RUC and files VAT returns, it can usually be used as a tax credit. Confirm it with your accountant.
About the author
Giovanni Guadalupe
Consultant in digital marketing, imports from China and studying in Russia and China. I took my degree in Moscow, a master's in Minsk and another in Barcelona, and I speak Spanish, English and Russian.
