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Ecuador Removes Surcharges & Quotas on Textiles, Apparel, Footwear, Etc

According to the Office of Textiles and Apparel, Ecuador has removed its “Balance of Payments” (BOP) safeguard measures for all textile, apparel, footwear and travel products, as it has instead imposed a system of mixed tariffs on similar products. The BOP measures were removed effective July 23, 2010.

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“BOP” Surcharges and Quotas in Place Since January 2009

In January 2009, Ecuador implemented import restrictions on approximately 600 products, which it justified as “BOP” safeguard measures.

These restrictions included ad valorem surcharges, specific surcharges, and quotas, which were applied on imports from all countries. For example, surcharges of $10 per pair were applied to certain footwear and $12 per kilogram to certain apparel items. Certain travel goods and floor-covering products were subject to quotas.

OTEXA states that these surcharges and quotas, which have now been removed, were in addition to earlier tariff reform measures introduced in 2007 and 2008 that increased tariffs on certain textile products to 30%.

Ecuador Now Using System of Mixed Tariffs on Textile, Apparel, Footwear

On June 1, 2010, Ecuador implemented a system of mixed tariffs (a flat import surcharge plus an ad valorem tariff) on more than 300 products, including certain textile, apparel, and footwear articles. It also announced its plan to phase out the BOP measures on July 23, 2010. (See ITT’s Online Archives or 07/26/10 news, 10072619, for BP summary.)

Labeling, Certification Requirements Remain in Place

OTEXA explains that certain labeling standards and certification requirements introduced in 2008 were not affected by these changes in Ecuador’s import restrictions and remain in place. (See notice for details.)