Through Decree No. 783, the Government provides to strengthen the fight against smuggling and reinforce customs controls, in the face of possible crimes such as money laundering.
Customs personnel seized contraband merchandise in January 2022.
The Government issued decree No. 783, on June 19, with which it declares the fight against smuggling and under-invoicing of imported merchandise as a “matter of national interest.”
According to the recitals of the regulation, in some sectors of the Ecuadorian economy there has been evidence of money laundering practices, and undervaluation of imports, “which, in certain cases, compete unfairly with national production.”
Recently, a survey by the Chamber of Industries and Production (CIP) reported that 40% of the products that circulate in the Ecuadorian market are informal.
For this reason, article two of the decree provides that customs controls be strengthened in the event of possible crimes associated with smuggling, such as money laundering and fraud.
To comply with the controls, the Executive orders that the Ministry of Production and the National Customs Service appoint a public servant, with the rank of undersecretary.
This official will be in charge of articulating and monitoring what is ordered in the decree.
In addition, within a period of 90 days, counted from the issuance of the decree, both entities will present a technical regulation to execute the provisions.
