Doing Business in Ecuador: 2016 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2016. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Table of Contents Doing Business in Ecuador ..............................................................................................................................4 Market Overview ..........................................................................................................................................4 Market Challenges ........................................................................................................................................4 Market Opportunities....................................................................................................................................5 Market Entry Strategy ...................................................................................................................................5 Political Environment .....................................................................................................................................6 Political Environment ....................................................................................................................................6 Selling US Products and Services.....................................................................................................................6 Using an Agent to Sell US Products and Services ...............................................................................................6 Establishing an Office ....................................................................................................................................6 Franchising...................................................................................................................................................8 Direct Marketing...........................................................................................................................................8 Joint Ventures/Licensing ................................................................................................................................8 Selling to the Government .............................................................................................................................9 Distribution and Sales Channels .................................................................................................................... 10 Express Delivery.......................................................................................................................................... 11 Selling Factors and Techniques ..................................................................................................................... 12 eCommerce ................................................................................................................................................ 12 Trade Promotion and Advertising ................................................................................................................. 12 Pricing ....................................................................................................................................................... 14 Sales Service/Customer Support ................................................................................................................... 14 Due Diligence ............................................................................................................................................. 14 Local Professional Services ........................................................................................................................... 14 Principal Business Associations ..................................................................................................................... 15 Limitations on Selling US Products and Services .............................................................................................. 16 Selling U.S. Products and Services Web Resources .......................................................................................... 16 Trade Regulations, Customs, and Standards ................................................................................................. 17 Import Tariff............................................................................................................................................... 17 Trade Barriers............................................................................................................................................. 18 Import Requirements and Documentation ..................................................................................................... 21 U.S. Export Controls .................................................................................................................................... 21 Temporary Entry ......................................................................................................................................... 21 Labeling/Marking Requirements ................................................................................................................... 22 Prohibited and Restricted Imports ................................................................................................................ 22 Customs Regulations ................................................................................................................................... 23 Trade Standards.......................................................................................................................................... 23 Trade Agreements....................................................................................................................................... 26 Licensing Requirements for Professional Services ........................................................................................... 26 Trade Regulation Web Resources .................................................................................................................. 27 Investment Climate Statement ..................................................................................................................... 27 Executive Summary ..................................................................................................................................... 27 Openness to and Restrictions upon Foreign Investment................................................................................... 28 Conversion and Transfer Policies................................................................................................................... 30 Expropriation and Compensation.................................................................................................................. 31 Dispute Settlement ..................................................................................................................................... 31 Performance Requirements and Investment Incentives ................................................................................... 32 Right to Private Ownership and Establishment ............................................................................................... 33 Protection of Property Rights ....................................................................................................................... 33 Transparency of the Regulatory System ......................................................................................................... 36 Efficient Capital Markets and Portfolio Investment ......................................................................................... 36 Competition from State-Owned Enterprises ................................................................................................... 36 Corporate Social Responsibility..................................................................................................................... 37 Political Violence ........................................................................................................................................ 37 Corruption ................................................................................................................................................. 37 Bilateral Investment Agreements.................................................................................................................. 42 OPIC and Other Investment Insurance Programs............................................................................................. 43 Labor ......................................................................................................................................................... 43 Foreign Trade Zones/Free Ports/Trade Facilitation.......................................................................................... 44 Foreign Direct Investment and Foreign Portfolio Investment Statistics .............................................................. 44 Trade and Project Financing ......................................................................................................................... 45 Methods of Payment ................................................................................................................................... 45 Banking Systems ........................................................................................................................................