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University of Azuay Faculty of Legal Sciences University of Azuay Faculty of Legal Sciences School of International Studies Comparative analysis in the operational and legal field between the traditional import model and the B2B import model through electronic commerce. Graduation work prior to obtaining a Bachelor's Degree on International Studies, Bilingual Mention in Foreign Trade Authors: Daysi Estefanía Granda Crespo Andrea Cristina Mera Andrade Director: Dr. Claudia Inés Campoverde Cárdenas Advisor: Ing. María Inés Acosta Urigüen Cuenca - Ecuador 2018 THANKS We want to thank our Thesis Director, Dr. Claudia Inés Campoverde Cárdenas, as well as our Consultant, Engineer María Inés Acosta Urigüen for their patience and unconditional support throughout this work and the college career itself. To all the public and private institutions that gave us their openness and information to make this thesis, University of Azuay teachers who helped with testimonies and ideas and the people involved in general. Finally, we greatly appreciate the immense support that our parents have given us throughout this college stage with their example of perseverance and dedication. ii INDEX OF CONTENTS ABSTRACT .................................................................................................................................vi INTRODUCTION ....................................................................................................................... 1 CHAPTER 1: THEORETICAL FRAMEWORK OF IMPORT ............................................ 2 Introduction to Chapter 1....................................................................................................... 2 1.1. Introduction to imports and process definition (General State of imports on our country) .................................................................................................................................... 3 1.1.1 Legal definitions .................................................................................................. 5 1.1.2 Process of a traditional import .................................................................................. 7 1.2 Current status of electronic commerce in the world, Latin America and Ecuador .. 17 1.3 E-commerce and the Business to Business model or B2B ........................................... 20 1.4 Import process through electronic commerce B2B pages ........................................... 23 1.5 Imports through electronic commerce under emergency regimes. ............................ 26 1.6 Categories of goods for emergency regimes .................................................................. 30 Conclusion to Chapter 1 ........................................................................................................... 33 CHAPTER 2 COMPARATIVE ANALYSIS ......................................................................... 34 Introduction to Chapter 2..................................................................................................... 34 2.1 Analysis of the interviews conducted (Interviews attached in annexes) ......................... 35 2.1.1 Analysis of the interview with Commercial Engineer Antonio Torres, current university professor and foreign trade operator. ............................................................... 35 2.1.2 Analysis of the interview with Dr. Jaime Moreno, Chamber of Commerce of Cuenca Legal Director and Eng. Diego Farfán, in charge of the systems department of the aforementioned Chamber. ............................................................................................. 37 2.1.3 Analysis of the interview with of Marcimex national purchasing manager, Eng. Juan Francisco Vanegas ....................................................................................................... 40 2.1.4 Analysis of the interview with Miss Elisa Rizzo, sales manager of La bahía.ec ..... 41 2.1.5 Analysis of the interview with Eng. Cristina Córdova, National Decoration Imports on Colineal. .............................................................................................................. 41 2.1.6 Analysis of the interview with Engineer Carlos Brussil, SENAE District Department of Cuenca, capacity technical operator .......................................................... 42 2.1.7 Analysis of the interview with Eng. Nuria Maldonado, Correos del Ecuador Regional Director CDE E.P. ................................................................................................. 45 2.1.8 Analysis of the interview with DHL Corporate Clients shipments economist Carolina González ................................................................................................................. 47 iii 2.1.9 Analysis of the interview with IMPORTEC CEO Engineer Fernando Vélez, and DHL user ................................................................................................................................ 48 2.1.10 Analysis of the interview of Mrs. Dayana Vidal, Ali Express and Correos del Ecuador user .......................................................................................................................... 49 2.2 Opinions and positions regarding the Customs Control Service Fee (TSCA) from the interviews conducted ................................................................................................................. 50 Eng. Cristina Córdova, Colineal National Decoration Imports ............................................ 50 2.3 Final opinion regarding the TSCA .................................................................................... 54 2.4 Legal analysis of traditional imports ................................................................................. 55 2.5 Legal analysis of B2B imports through electronic commerce ......................................... 56 2.6 Operational analysis of traditional imports ...................................................................... 59 2.7 Operational analysis of B2B imports through electronic commerce .............................. 60 Conclusion to Chapter 2 ........................................................................................................... 63 CHAPTER 3: B2B IMPORTS, ADVANTAGES AND DISADVANTAGES ...................... 64 Introduction to Chapter 3......................................................................................................... 64 3.1 Barriers to electronic commerce in Latin America .......................................................... 65 BIBLIOGRAPHY ..................................................................................................................... 84 ANNEXES .................................................................................................................................. 87 iv GRAPHIC INDEX Graph No. 1 Gross Merchandise Value by B2B electronic commerce (GMV) from 2013 to 2017 (In billions of US dollars) ....................................................................... 18 Graph No. 2 Percentage of e-commerce within total trade in Latin America ........ 19 Graph No. 3 Percentages of Ecuadorian companies that negotiate on the internet20 Graph No. 4 The growth of E-commerce from 1995 to 2016 ................................... 21 Graph No. 5 Typical e-commerce model .................................................................... 22 Graph No. 6 Process to make a purchase on Alibaba ............................................... 24 Graph No. 7 Avísalo System from Correos del Ecuador .......................................... 27 Graph No. 8 Categories of Postal Traffic and Accelerated Messaging ................... 32 Graph No. 9 Stages in Electronic Commerce transactions ....................................... 65 Graph No. 10 Perception of the challenges faced by companies in cross-border e- commerce ....................................................................................................................... 67 Graph No. 11 Percentage of rejected orders for fraud in Latin America ............... 69 Graph No. 12 Estimated sales of B2B and B2C Electronic Commerce globally and in Latin America and the Caribbean .......................................................................... 71 v ABSTRACT This thesis focuses on a comparative analysis of traditional imports and Business to Business (B2B) model import through electronic commerce, focusing on global, Latin American and local situation. To achieve this analysis an approach has been made in the legal and operational scope of both import models in order to determine the advantages and disadvantages that importing through electronic commerce could provide to the importer. This work has been the result of a bibliographical research and a field study in which real data of companies and institutions was obtained. This is how we reach the main conclusion that the B2B import model is advantageous in comparison to the traditional one, in the measure of the type of product to be imported, the quantity and its purpose. It is for this reason that it is recommended that uncomplicated merchandise, without greater technical specifications or requirement of guarantees, should be imported through this model (B2B) taking into account the limits established by law. vi INTRODUCTION Imports of goods made by individuals for commercial purposes or for personal effects, whether the importers were natural or legal, involve a series of steps to ensure that the goods arrive in the country of destination according to the law. One of the first steps involves
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