Category: Investor News/Analysis

My 1st export from Ecuador: the good, the bad, the ugly, + the ABCs

Recently, I completed my first export from Ecuador. 

Ecuador-themed 2013 wall calendars. 

A big 9 kilo box of them. 

What did I learn? 

Well, it’s not as easy as just taking them to DHL and “chao”. 

1. First, you have to check to see if the product you’re shipping will have to pay import tariffs upon entrance to the country you are shipping to.  To do that, you’ll need to find out the HS Code, every product has one.  The fastest way to find it is to “Google it”.  For instance, “HS Code calendars”.  Or in Spanish “partida arancelaria calendarios”.  Or you can go to this link from the Ecuadorian Customs and search it by the name of the product (in Spanish)… http://sice1.aduana.gob.ec/ied/arancel/index.jsp

2. Then, you can use the handy free tool online at macmap.org after free registration to see if the product you are exporting will incur an import duty to the country you are exporting to based on the country you are exporting from.  Register than follow the link that says “Market Access Map” and fill in the blanks with the HS code of your product. 

3. (If applicable) In the Mac Map tool from the last step, if it appears that the product you are exporting would incur a duty yet doesn’t because it falls under a special bi-lateral treaty then in order to take advantage of the benefit you will need to get a Certificate of Origen (Certificado de Origen).  It’s not as hard as it sounds, to get one in Ecuador you will need to register in the website of the Ecuapass, portal.aduana.gob.ec .  Choose the option “Solicitud de uso”.  In the menu choose “Ventanilla Unica” then fill in the form at “Elaboracion de DJO”.  Then choose “Elaboracion de CO” and fill in that form completely, but you will need to pick it up physically at the local offices of MIPRO where you reside in Ecuador.  The cost is minimal.  But my wall calendars according to Mac Map enter the US at 0% duty so I could skip this step. 

4. Then choose your shipping carrier.  For important documents I recommend DHL, you can get items from Ecuador to the USA quick, usually in about 2 days (for about $60).  But for a box that weighs 9 kilos like mine it would cost $350 to ship, while with the general post of Ecuador CORREOS ECUADOR it only cost me $150.  Correos Ecuador does give you a tracking number where you can check the shipping status online and works with the government post services of other nations. 

However, if I register as an exporter at ExportaFacil.gob.ec I can ship internationally with Correos Ecuador at about half the price of the normal shipment of $150.  For me, it cost just $72 to ship the box.  You will need to obtain an Ecuadorian tax ID number (RUC) from the SRI to sign up for the discount program. 

5. Once your goods make it to the final destination the easy way is to pay a friend or relative to ship them off one by one to their final destinations or if exporting to the USA, you could use a service like Webgistix.com.  They receive, unpack, warehouse and ship products to their final destination for a fee. 

My calendars arrived. 

They sold.  All good. 

But I underestimated how long they would take to arrive. 

Allow 4 days to arrive in Miami from Ecuador with Correos Ecuador.  Then allow another 2 days for the package to clear customs, more if your package hits the US on a weekend when offices are closed.  Then another 2 days for it to get to its final destination in the USA.  Then give it 2-4 more days when mailing the items within the US unless you’d like to pay more to overnight them. 

…To keep reading this article, sign up for my list below, you can unsubscribe at any time:

First Name
* Email
* = Required Field

What pays in Ecuador and what don’t

“I’d love to offer my marketing service to Ecuador businesses, but what would they pay me?” A friend told me recently over a coffee in Ecuador.

He was right.

Did Ecuadorian businesses need his service, just like businesses in the US do?

Yes.

But were they willing to pay him what the service is worth?

No.

After a year and a half in Ecuador, I feel like I got a bird’s eye view of this s-h-i-t.

Like in most ‘third world’ countries, in order to make money in Ecuador you have to sell a product.

Your own product.

So stop thinking like an American, or someone from a service-based economy, and stop trying to sell services.

I mean…

Don’t start a travel agency… build your own specialty tour and sell it through the travel agencies.

Don’t become a real estate agent… flip your own properties.

Don’t become an ESL English teacher (it doesn’t pay like it does in Asia)… start your own English school.

Don’t offer a service to exporters… export something.

Don’t be a financial advisor… sell shares of your own niche investment fund.

Don’t offer your service as an electrician, plumber or builder… start your own specialty lighting business.

Don’t offer your service as a professional video editor… make your own videos.

Don’t look for someone else to hire you (employees start out making $318USD a month)… start your own business.

I can’t stress this enough, you need your own ‘thang’.

My first few months in Ecuador I spun my wheels trying to sell a marketing service to Ecuador businesses, I learned the hard way, now you don’t have to.

…To keep reading this article, sign up for my list below, you can unsubscribe at any time:

First Name
* Email
* = Required Field

How to Buy your Residency Visa in Ecuador on the Cheap

Man, I wish someone would have told me this a year and a half ago.

Really, sometimes info is worth money.

The door to Ecuador residency really is wider open than it even seems to be.

Now, the easiest way to get a resident visa in Ecuador is to prove you have a pension of over $800/month.

But what if you don’t have a pension?

Then you have to buy your way in with an investor’s visa.

But it’s actually cheaper than advertised.

Sure, you can lock up $25k or more in a one year CD which than qualifies you if you trust Ecuador’s banks.

Or…

You can buy a property municipally valued over $25k.

Here’s where it gets interesting…

You don’t actually have to pay $25k.

Or scowl the earth in Ecuador looking for a property that is municipally valued over $25k, many properties, although worth well over $25k are municipally valued far under that.

…To keep reading this article, sign up for my list below, you can unsubscribe at any time:

First Name
* Email
* = Required Field

How Will the New Airport Effect the City of Quito?

 

The new airport scheduled to open February 20 will have profound effects on the city of Quito.

Skyscapers will now be allowed to be built higher, which could drive already high (for Ecuador) property prices downward.  The area around the current airport will probably wither on the vine, it already is a seedy area that will not get any better now that the legit airport-related businesses will be on their way out.

Many travelers whose final destination is somewhere in Ecuador other than Quito will probably opt to go through now more convenient Guayaquil or not bother to pass through the city of Quito at all scheduling their connecting flights back to back to their international arrivals.

The short Quito-Guayaquil flight is the most trafficked route in all of South America, but may not be any longer as more people will choose not to travel as often or use the bus considering the increase in travel times.

The area of the current airport will  be converted into a park, convention center and several large roads servicing the different areas of Quito.

To keep reading this article, sign up for my list below, you can unsubscribe at any time:

First Name
* Email
* = Required Field

Banking it with Wedding Rentals in Ecuador

“They paid …how… much?” …

… I said earlier this week while visiting a wedding on a hacienda (small country home) outside of Quito.

“$1500, just for the day.” The owner of the hacienda told me.

“Damn.” I responded, “and they don’t even sleep here.”

It’s true, from my time in Ecuador I’ve noticed no matter how much or how little Ecuadorians make, they spend BIG money on three things…

Clothes.

Beer.

And weddings (Often over $10-12k).

Big money.

And weddings are a commonly overlooked rental opportunity here in Ecuador.

Where I’m at now, just outside of Quito, as I check in from my smart phone, the haciendas charge anywhere from $8-12 per person charging for a minimum of 100 people.  (That’s $800-1200 minimum daily rate for the hacienda owner.)

For even larger wedding receptions with up to 400 people, which are common in Ecuador, most haciendas will charge a flat daily rate usually around $1500-2500. I should say that the biggest reception I have ever attended was at the reception barn at Mint Springs Farm. There was around 200 people and I thought that was too many guests.

The only costs to the hacienda owner (you) are what you’ll need to pay to a guard for the day (around $20) who helps park the cars and a dry cleaning service that takes care wedding dress and suit (around $20 for the job). One place I know of in Monterey, California, called Gatherings, has just the ambiance I’m talking about. Check out some of the pictures of their Boutique Venue by Googling a unique event venue in Monterey — see the ambiance I’m talking about? There is a piano, chandeliers, two fireplaces, an outdoor deck area, antique furniture, beautiful draperies and more. You would never be able to afford decorating the local hall, hotel or restaurant banquet room to this degree — well, at least I personally couldn’t afford to. And the feeling these facilities give your guests is extra special – it’s warm, cozy, inviting and family-oriented (home-like). You can even choose between four fonts and if you’d rather have a colored or white background, if  you want to learn more about the best invitations and other wedding preparations you can visit www.modernmoh.com online. Now, a Victorian home such is Gatherings may not be your cup of tea, but all-inclusive, or Boutique, wedding reception venues are made up of many different styles from contemporary and urban to sexy and flamboyant. Just do your research in the city you plan to get married. In your browser, just type in all inclusive wedding venue in The Enchanted Valley Barn. Some of these venues take care of every little detail including photographer and florists, and others include mainly what I listed above, but I know that if you were to go and hire each of these vendors individually and add them all up, it would equal quite a bit more than the package price you will get at an All-Inclusive Wedding Reception Venue or Boutique Wedding Reception Venue. Check here learn more about wedding limousine services. Depending on the time of year, many all-inclusive wedding reception venues run promotions. You may find that for an off season date they offer a discounted rate or include a free wedding cake, an extra appetizer, or a free bartender. You can check here the list of wedding planners. Remember to ask them if the date of your wedding falls within one of these off season times that they may have some specials for. And if these venues don’t fit for your ideal wedding reception, don’t forget them as possibilities for your Rehearsal Dinner or Engagement Parties. You can check here about romantic Myrtle Beach weddings. Many of people prefer them over others.

It’s never been easier to arrange a celebration outdoors or in an unconventional venue. Nowadays, just about anything is transportable from foldaway tables to portaloos to kitchen equipment. So if you have been dreaming about hosting an anniversary, birthday celebration or wedding therein perfect location within the middle of nowhere, hesitate not . With a touch of effort and tons of investment (unfortunately, this stuff don’t come cheap… ) you’ll roll in the hay. If it is summer, you may need to server beverages cold, and probably you may also have to need a chiller for that. You’ll also have to pay for the cost of a generator installation for the day (DJs and weddings use a lot of electricity). This would all cost you alot, if you are hiring different company for arrangement. But with the help of the Chiller Rentals, you can find generator service, AC- chiller, Water Chiller all at one place.

Everything else is organized and paid for by the bride and groom or the wedding planner.

In order to rent your place like crazy, your hacienda needs to be at least 2000m2 in size and have plenty of space for the tents and have well-kept green grass.

It needs to be excellently gardened.

Have at least two outdoor bathrooms (the wedding guests won’t even use the house on your premise!)

And an attractive entry gate.

Plus have an electric generator.

And a small room with a mirror and couch where the bride and go and freshen up (like an actor’s room).

Additional extras that aren’t necessary but helpful include… a small wedding chapel, a small pool in the shape of a lake with a small bridge over it (the bride and groom will stand over it while the parents give speeches (a cheesy Ecuadorian tradition)).

In Ecuador, it’s common to get married in the church around 11am, then go to the reception around 1pm which usually lasts until about 8pm, but can go as late as 12 midnight.

Folks pay you the hacienda owner the daily rent and must leave by 12 midnight or pay extra.

Where’s best to have your hacienda for wedding rentals in Ecuador?

Keep in mind Ecuador has two main cultures.  The people on the coast live one way and the highland people have their own customs.

The same goes for weddings.

On the warmer coast, hacienda rentals is not much of an opportunity, because most folks prefer to get married in the church and have their receptions in air conditioned hotel ballrooms or on the beach with the best maintenance from dryer vent cleaning service online.

In the highlands, its common for folks to get married in the church, then go to a hacienda near the city but in the countryside for the reception.

By far, the most in demand area for hacienda wedding rentals are the valleys near Ecuadors capitol city, Quito.

Specifically the Cumbaya or Tumbaco areas.

How much is land going for in the Cumbaya area?

If you look like the locals lookin the way I describe in my full guide to housing hunting in Ecuador you can find haciendas going for around $70/m2.  Many go for more though and I’ve seen prices as high as $200/m2.

How do you promote your hacienda for wedding rentals once you have it?

To keep reading this article, sign up for my list below, you can unsubscribe at any time:

First Name
* Email
* = Required Field