Ecuador will respond legally to the CAN for resolution on fees

Ecuadornews:

Chancellery analyzes the administrative and judicial processes that still remain. The Chamber of Commerce of Guayaquil celebrated the repeal; they will continue with resources in the courts.

The Government analyzes what resources to apply to defend the Customs Control Service Rate (TSCA) created by the National Customs Service of Ecuador (Senae) with the objective of combating smuggling. Resolution # 1999, of April 20, 2018 issued by the General Secretariat of the Andean Community (SGCAN) qualified as a levy the customs fee, because there is no consideration for the service.

Therefore, it establishes a term of 10 business days, counted from the publication of said document, so that the Ecuadorian government can withdraw the measure for Andean trade.

The Ecuadorian Foreign Ministry, through a statement published on its website, said that this entity and the Senae, currently evaluate the procedural resources, both administrative and judicial, within the framework of the Andean legal system, which will allow obtaining the review of the resolution issued by the SGCAN.

“The aforementioned resolution does not constitute in any way a firm act, nor the final stage of the process,” the ministry said. In the administrative field, Ecuador has the reconsideration appeal before the SGCAN and in the judicial scope before the Court of Justice of the Andean Community, where it could file a nullity action against the aforementioned resolution.

The Minister of Industries and Productivity, Eva García, said that these resources can reverse the resolution of the CAN and recalled that the government initiative means “the fight against smuggling, a scourge that affects the country and all Ecuadorians as a whole.”

Entrepreneurs celebrate

Entrepreneurs are happy and applaud the resolution. The TSCA is illegal, a tax-exempt encumbrance, entirely collected as a result of the Ecuadorian state spending more than it enters, that has consequences for trade, said Juan Carlos Díaz-Granados, executive director of the Chamber of Commerce of Guayaquil (CCG).

For the trade union leader, if Ecuador does not repeal the tax, it would be a disrespect for the legal security of the country, which would make it very difficult to do business in the long term, as it contradicts the Government’s message of attracting investment.

“When you do business with people, you respect the contracts, whether nationally or internationally,” he said. Caterina Costa, president of the Chamber of Industries of Guayaquil (CIG), considered that the rate is illegal because there is no service that the customs provide to the importer in an individual way that justifies the collection of the same, in addition the formula to calculate it is discretionary.

“We hope that the National Government will abide by the CAN resolution and eliminate this rate not only for our Andean partners but for all countries,” Acosta added.

On the legal issue Gabriela Uquillas, customs advisor of the CCG, recalled that on November 9, 2018, the CCG filed an action for precautionary measures.

“National justice did not prevent this illegality and today it must be international organizations that determine it”. The CCG also filed a lawsuit before the National Court, which must be resolved on May 18; “The judges have on their shoulders to determine what is the fate of this rate, not only for the countries of the CAN but in general terms.”

“There is no doubt about the illegality of the tax because there is no compensation, this analysis is the same as that of the judges of the National Court. Once the sentence is obtained and the measure is declared illegal, everything that has been collected by virtue of it must be returned to the citizenry, she said.

The TSCA became effective on November 13, 2017. Its purpose is to reduce contraband and fraud, applies to all imported products, with specific exceptions such as personal belongings of the traveler. So far the rate has raised $ 25,840,674 of the $ 121 million that were proposed as a goal. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/ecuador-can-resolucion-tasas