Questions free trade agrements with Ecuador

Questions: free trade agreement with Ecuador

Here you will find the relevant documents and the most frequently asked questions about the free trade agreement (FTA) with Ecuador, which has been in force since 1 November 2020.

Will the preferential rates still be granted? Since the free trade agreement came into force, Ecuador is no longer granted tariff preferences under the Generalized System of Preferences for developing countries. These have been replaced by the agreed preferential rates.

Cumulation of origin The EFTA–Ecuador agreement provides for cumulation for products originating in the EFTA countries and Ecuador. Cumulation can also be applied to primary materials originating in Colombia and Peru. These primary materials must be originating products under the respective agreement and must be processed or integrated into a product in the EFTA countries or in Ecuador; it is not possible to transfer origin in respect of goods originating in Colombia and Peru that are forwarded without being processed or integrated. Cumulation with primary materials originating in other countries is not permitted.

Tolerances There is a general value tolerance of 10% of the ex-works price of the product for non-originating materials in the list rules. This does not apply to products in Chapters 50–63, where the tolerance is 10% of the total weight of the product.

No-alteration rule This agreement provides for the no-alteration rule, i.e. the imported originating products must be the same as those exported from the contracting party. They must not have undergone any unauthorized working or processing during transport. The splitting of consignments in third countries is permitted.

Proof of origin from Switzerland The declaration of origin can be issued by the exporter on the invoice regardless of the value of the goods. The declaration of origin must be made out in English or Spanish.

Reduction of tariffs on imports to Ecuador The reduction of tariffs is asymmetrical for most of the products listed in Chapters 25–97. While the EFTA countries abolished their tariffs in one step when the agreement came into force, the reduction/elimination of tariffs in Ecuador takes place gradually.