Logistics Zone at Guayaquil opened
A Special Economic Development Zone (ZEDE) has been launched in Ecuador. It is located in the hinterland of Contecon Guayaquil (CGSA), an affiliate of International Container Terminal Services. The Philippines-based port operator, together with national government and port authority representatives, recently presented its 'ZEDE Declaration'. It provides a complete and stable regulatory framework of Ecuadorian legislation for the development of investments from the private sector.
Several tax incentives have been put in place to attract businesses, including exemption from income tax for the first ten years of the project and reductions of ten points from the tax rate for the following ten years; exemption from foreign exchange exit tax for up to 20 years; exemption from foreign trade taxes for a similar period, as well as VAT credit on local purchases; benefits in sectional fees and taxes, depending on the location of the project; and benefits in special customs processes for the scheme.
The CGSA currently handles over five million t of export cargo per year. (cd)