|
Ecuador: Safe Donation for Earthquake Relief:
After delivering relief supplies from the
Ecuadorian Baha'i community to Muisne, it was suggested that Atacames has a lot of empty hotels and condos that could provide relief to many of the victims, How to facilitate that, is a question. The government could easily do so. The owners could also, The Prem Rawat Foundation has donated $25K towards earthquake relief here, and clearly there are others. Charitable relief funds that are making sure the bureaucracy doesn't divert monies could manage this. Atacames and Tonsupa were relatively unscathed by the earthquake, They only get about 30 days per year of full hotel, etc. occupation during holidays. Now the beach is empty and may remain so even in holidays to come for awhile. I would hope that this might get passed on to those who could implement it.
Ecuador: RUMOR CONTROL: QUAKE RECOVERY:
A friend from Manta told me that the Army troops that were sent there are not being fed by the Army. They are expected to feed themselves on the $90/month they are given to pay the $3/day they pay back to eat at the mess halls at their garrisons. Seems like a recipe for disaster. If they were doing combat duty, they would be being fed, so?? Perhaps someone who has connections could look into this. In the off chance that the government monitors expat forums maybe some investigation could get to the bottom of this gross negligence.
IMHO
Ecuador: Sales Tax (IVA) Refunds:
March, 2016
Since most posts are outdated: For tourists the 12% Sales Tax you paid in Ecuador is refundable at the airport with the proper (invoice - factura) documentation from the vendor.
For those who have obtained a permanent resident visa and are over 65 (tercer edad - 3rd age) the value added tax (VAT) or IVA is refunded by the SRI (Ecuadorian IRS).
This requires a visit to the SRI office the first time, but afterwards can be done using an online form, and the refunds will be deposited in your Ecuadorian bank savings (ahorros) account. You will need an official certificate from your bank to start this as well as your original C.I. (national ID card, aka CEDULA) as well as the Facturas (invoices) showing the merchants´ R.U.C.´s and the IVA collected to get started on that first visit. There are also some forms to submit. After that the internet form just requires the information to be entered.
Do not neglect to request a factura when you purchase anything, and you will need to know your Cedula number or have a copy of it with you. It is a good practice to keep the original secure since it is a bureaucratic hassle to get a replacement. That same number would be on a Drivers License, and that is also something that is better kept secure.
Tercer Edad IVA Refund limit (2015)
$2,548.8o annual limit
$212.40 monthly limit
AFTER the over-the-counter request for VAT refund, the procedure can be performed online. To do this requires only the electronic services key to access online. The SRI will send you that key by email, but you have to ask for it.
At this writing I am struggling with the internet process, but as soon as it becomes clear, I intend to post a step by step guide. Otherwise, you can go to: https://declaraciones.sri.gob.ec/devolucionTerceraEdad-internet-1.0/pages/
You will need to have Internet Explorer , Netscap , or Mozilla ; Google Chrome or FireFox will not work with the Excel form the SRI uses.
Also, you will need to set your Windows language-idiom to Spanish to get the appropriate entries in Excel because in Spanish the thousands separator is the (.) "Point or Period" & the decimal point is the (,) "Coma". (English is 1,000.00 & Spanish is 1.000,00). With the idiom change Excel makes the correct entries even if you are using an English keyboard.
Ecuador: Ecuador Missing the Boat:
So, the government believes that yachts are just for the rich and charges a very high tariff on all those that are brought into and registered in Ecuador. This in turn has prevented the development of marinas, anchorages, boatyards, and chandleries that could serve power and sailboats in Pacific equatorial waters. That in itself, reduces Ecuadorian potential incomes and that of the government.
In fact, there are many people who are not so wealthy that they would be willing to bring their boats to Ecuador because of this. Many are cruisers who live aboard, but still have to put money into their hole in the water, even if they do their own maintenance.
Indeed, the fishing industry is primary here. But a great resource is not being used to its potential, IMHO.
Ecuador: Exorbitant Tariffs:
Sure, and the government is cash strapped, but the high tariffs probably reduce the sales so much that they are self defeating.
Given that many items may be considered luxuries and affordable only by the oligarchy, and tariffs on items that compete with Ecuadorian produced goods are understandable, unless, of course, the prices of local goods are inflated to match them.
On another level, the tariffs on foreign products other than those from China, promote low quality goods that end up costing Ecuadorians more in the long run due to less durability and the cost of maintenance.
Ecuador is like an island since its overland trade is minimal. Shipping and air transport are the primary means of transport. Although that increases the cost of imports, the selective tariffs do more damage.
For example, a Japanese motorcycle priced in Quito was $10K more than the same bike's MSRP in the US. Is shipping from Japan to the US that much less than to Ecuador? Perhaps a bit, due to volume, but even then, transport of that same bike from the US to Ecuador would not account for the price difference even with all of the middle men.
Not being an economist I cannot say, but the impact on businesses and the people may be more than the government understands, and is, itself losing income by the exorbitant tariffs, IMHO. I expect that many businesses will experience a reduction in sales. For example, Club Correos has folded due to the additional $42 tariff on small packages imposed to protect Ecuadorian clothing makers from internet purchases from the US.
Ecuador: Sailboat slips for rent in Ecuador ??:
Here is the results of research on the importation of a yacht into Ecuador as of 10/2014.
Importing a yacht to Ecuador
IVA 12%
The VAT, value added tax (IVA), is added to the customs value of imported tangible personal property. The customs value of the goods will be the transaction value supported with invoices (FOB price), plus transport and insurance costs
ICE-*
The Impuesto a los Consumos Especiales (ICE) shall apply to specific domestic or imported goods. The tax base of imported goods subject to ICE, is based on the retail price suggested by the manufacturer (MSRP), or invoice value, not including the IVA.
Chart No. 23 ICE Tax RateGroup II, 2, yachts and pleasure boats: 15%
In the case of imports, the liquidation of the ICE will be performed in the import declaration and payment will be made prior to release of the goods by the Customs Office. The tax for ICE shall be deposited into the respective account of the internal revenue service (SRI) in the Central Bank of Ecuador. The Importer shall submit the Single Customs Declaration (DAU) together with the supporting and accompanying documents. The Supportive Documents will constitute the base of the information of the Customs Statement. These original documents, whether submitted physically or electronically, must be kept in the declarant's file at the time of presentation or transmission of the Customs Statement and will be his responsibility.
a) Transport Document - Constitutes the instrument that credits the property of goods before the transmission or presentation of Customs Statement. The endorsement of the transport document implies the endorsement of other accompanying documents
b) For Customs the commercial invoice (factura) will be the support that credits the commercial transaction for the importation. The invoice must be definite, an original document even if it is digital, and issued by the seller.
*To determine the (ICE) tariff to be paid for each imported product as well as the required documentation prior to shipment or customs clearance, the Foreign Trade Integrated System (SICE) must be consulted.
Redacted from: from: TRADE GUIDE OF THE REPUBLIC OF ECUADOR, 2012,
PRO ECUADOR - Instituto de Promocion de Exportaciones e Invversiones
(note: the information from the SICE link given was dysfunctional, but was accessed by going to):
www.producion.gob.ec/wp-content/uploads/2013/08/anexo-arancel-nacional
"Parte 3 PDF; Capitulo 89; Barcos-- 89.03 Yates;
8903.9100 Barcos de Vela (sailboats) --- Tarifa Arancelaria=30(%)"
Considering that the reference to the 30%, 2013, SICE tax rate takes precedence to the 2012, 15% ICE tax rate, it is probable that both the 12% IVA and 30% ICE are in effect as of October, 2014. So, to import a sailboat with an invoice value of $100,000, the Government imposes taxes of $42,000.
In addition to that, according to the Direccion General de la Marina Mercante y del Litoral, in order to navigate Ecuadorian waters yachts <50 tons require a monthly zarpe ($5.00) signed by the Yacht Club Commodore and the Port Captain. (The Galapagos have further requirements). Non-Ecuadorian boats can receive a transit permit and provisional registration at any Ecuadorian Port Captain’s office. These documents allow the ship to make the trip to the country.
To get the navigation permit, the title of the ship and the certificate of registration, or a duly canceled registration, must be submitted. Once a transit permit is granted, provisional registration may be obtained. The provisional registration and transit permit are valid for six months, renewable once. Yachts sailing from one Ecuadorean port to another must obtain a domestic zarpe, while yachts leaving the country will require an international zarpe.
Agents are required for all foreign boats clearing into and out of all ports. The port authorities may not deal directly with you. Exorbitant agent fees may be attempted.
When an Ecuadorian is being overcharged by another it is common for him to say, "Que te ves, una cara de gringo?" (What do you see, the face of a [wealthy] Euro-American?)
Ecuador: Esmeraldas Log:
One week in Esmeraldas and Atacames does not an expert make.
1. The town of Esmeraldas is on the coast, Not 20 miles inland. Atacames is down the coast.
2 During the time of the primary post Esmeraldas was re-paving its primary streets. It does get more rain than Atacames where the rainy season is mostly light night time showers, although there can be heavy rain storms.
3. No comment on Esmeraldas city street cleaning or garbage collection. I live in Atacames where that is well managed.
4. The beach sand is grey and has a lot of fine silt from the rivers mixed in it. The ocean is turbid near any river during the rainy season. Most tourists are from inland areas and have little or no appreciation of not littering the beach. During high occupancy times the City of Atacames has a daily beach cleaning team for that reason.
5. The Panama current keeps the Esmeraldas Province water warmer than So, Cal., It meets the cold Humboldt current South of the Equator near Jama.
Just another note: The Atlantic Ocean at St. Augustine, FL gets as cold as 51 F in the Winter. So does the Pacific at Ventura in the Winter. Malibu can get as warm as 68 F in the late Summer. Santa Cruz is usually in the low 50's. Montanita, Ecuador has much cooler water than Atacames.
Global Expat Forum: Unsubscribe:
Goto: Search - Unsubscribe, but not the Global Forum, just the newsletter. I have been trying to unsubscribe myself, but get the message that my email address is not on the list although it is in my profile and I get a plethora of newsletters that I have to delete from the spam folder, so this may not help.
Ecuador: Real Estate Report - Atacames / Tonsupa:
I resent the heading "Esmeraldas Province has amongst the highest per capita crime rates in Ecuador."
This is not only prejudicial, but probably a real estate ploy to channel customers to Cuenca.
The North Coast of Ecuador has a predominantly African ancestry population. This stemmed from a salve ship foundering in 1554, and those who escaped and survived intermarried with the indigenous population. The area became a refuge for slaves escaping from inland mines and plantations. Although the Spanish culture pervaded along with further inter-racial marriage, or at least progeny, the Spanish class system disenfranchised both indigenous Indians and Ecuadorians with African ancestry. Marginalized, those populations as well as the poorer Spanish created a culture of theft that the Conquistadors set the paradigm for and created the extreme economic disparity. To be just, the Incas were just as rapacious in their treatment of lesser tribes. The disparity of the division of wealth continues, and where there is only a short seasonal tourist trade, like in Atacames, the population is transient, and is slowly establishing roots and a broader financial base than tourism. Crime in Quito and Guayaquil is also high, and not just by Blacks.
Ecuador Welcome Forum: North Coast:
We have lived in Barrio Nueva Granada, which is between Atacames proper and Sua for almost 4 years, having bought a 3BR-2bath house on the beach after renting for several months nearby. Part of the attraction was to not live where a lot of other expats live, like Cuenca.
Also, the beach here is one of the best in Ecuador according to many. It's only 70 Km from Mompiche, a world class, left point break and Atacames has some fast beach breaks in the Winter on an incoming tide. The beach has a northwestern exposure.
On the negative side, the water is turbid from the very fine river silt, and has a history of causing skin, eye, and digestive tract infections from the polluted Atacames River. A sewage system has reduced the incidence of that. Tonsupa, on the other hand, just has septic tanks and a lot of high rise construction. BTW, Malibu, California has a much polluted, world famous surf break from its septic tanks.
Atacames is considered an Ecuadorian and Columbian holiday resort area. As such it has full capacity hotel occupancy maybe 30 days each year. The Malecon has deafening loudspeaker music and decibel level ordinances are not enforced. Many of the condos are just rented out or used during the holidays. Economic diversity is slowly developing to support the local population, but there is an over-dependence on the tourist trade and too much duplication of businesses that serve it.
Historically, in the 1500's a ship carrying African slaves foundered on the coast and those who survived intermarried with the local indigenous people. That integration expanded to Spanish Ecuadorians and the Esmeraldas province has a predominantly mixed black population. Slaves who escaped from other parts of Ecuador found refuge here too. Racial discrimination against both indigenous people and African Ecuadorians has depressed the economy and many live marginally. Atacames has a reputation of armed robbery, burglary, and theft due to that disenfranchisement, but Ecuador has wide economic class disparity that engenders that sort of thing nationally. The bugaboo about the North Coast being dangerous is an unmerited racially stereotyped prejudice. Real estate promoters on the internet tend to ignore the North Coast for that reason. The culture is Spanish, not Caribbean, but there is an African influence in the local music.
There are mosquitoes; little ankle biters that come out at dusk, but otherwise none are as painful and as irritating as those at Canoa. That is not to say that malaria and dengue fever are not here, but the city has an abatement program. There are times, especially during the rainy season when different species of mosquitoes are abundant, especially at night so Palo Santo, mosquito coils, and applied repellent are useful. Also there is a tiny gnat, a no-see-um that can get through screens and has a sharply felt bite; same as on some Florida beaches at night.
We are north of the Equator and the Central American current keeps the ocean at a comfortable temperature. There are occasional hot and humid days, but nothing like you would find in Panama. Cool offshore breezes predominate in the evenings and a cross-onshore breeze can build to a strong wind in the afternoon that blows the dust from the river silt into homes. Things that can rust do.
Hey, it is not paradise, but neither is Hawaii, Tahiti, or Florida and the cost of living is a lot less
| |