Category: Ecuador for Investors

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

22 things that will shock you in Ecuador

There´s a few things in Ecuador that will straight shock you when you see them…

…like when…

1.You see Ecuadorian males drown their French fries in Mayonnaise.

2. You see milk in unrefrigerated boxes on the shelves of grocery stores.

3. You pay $1 for a taxi ride in Quito, Cuenca or many of the small towns in Ecuador.

4. You see resumes in Ecuador with people´s picture, birth date, marital status and more.

5. That 100% of Ecuadorian grade schools require their kids to use uniforms.

6. The price tag of Levis Jeans, iPhones or Apple Computers in Ecuador (about triple that of the USA).

7. The sheer number of policemen in the streets, it may seem as though Ecuador tries to employ their entire male population as police or taxi drivers.

8. How Ecuadorians can drive while simultaneously leaning on their horns.

9. How Chicken soup in Ecuador will often have a chicken foot floating in it.

10. The mysterious lack of automatic cars.

11. You see the Ecuador delicacy of Bulls Penis soup (Caldo de Tronquito).

12. That in the Amazon there actually aren´t that many mosquitos at all.

13. That gas prices are still around $1.50 a gallon and water bills for a small house can be as low as $4.

14. Things like pay phones and internet computer centers in the street still exist and thrive.

15. How cars retain value. Seriously, you can buy a used car, use it for a few years and sell it for about what you paid for it!

16. How Ecuadorians love to drink beer, I mean a lot of beer, on the beach.

17. The sight of magazines with nude girls on the streets.

18. When you see the Ecuadorian remedy for hangovers… fish soup early in the morning (encebollado).

19. When you see the free public hospitals and free public universities. Like it should be, right?

20. How many Ecuadorian guys believe with every fiber of their being that it’s OK to be unfaithful but it’s a horrible, unforgiveable sin if their woman is unfaithful to them.This is not just an Ecuador thing, but actually more of a belief present throughout Latin America. Not that I mind double standards that benefit me.

21. How getting the internet is not a given if living deep in the Ecuador countryside.

22. How the streets are lined with pirated DVD shops. Want a new copy of Windows 7, sure, $5 please.

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

First Name
* Email
* = Required Field

How Ecuador compares to the big boys

The first thing people ask me when they meet me is…

So why’d you choose Ecuador?  

Good question. 

Well, here’s how Ecuador compares to the other countries where I’ve lived or spent significant time over the last 10 years.

Here’s my take based on my own experiences, despite my critique i really did enjoy each place listed below…

Spain:  Lived in Madrid for 8 months studying abroad.  In this part of Spain the climate swings from dreadfully cold in winter to scorchingly hot in the summer.  Ecuador has much more mild and steady weather.  Also, quite a few, not all, of the locals in Spain were a bit xenophobic, or rascist towards foreigners, specfically gringos like me, not so in Ecuador.

Hawaii:  Studied and worked here for 1 year.  Hawaii IS paradise, but it is expensive too and this is another place where the locals don’t think too kindly of white “howleys” (people not from Hawaii).  Hawaii is small and I think most can get burned out quick.  Ecuador has more variety like the Andes, Amazon and coast plus it has more things to do.  

San Diego, California:  Lived and worked here for 4 months.  Nice weather, beautiful city, tons to do, friendly people, good tex mex food.  Great place with lots of money to make, really no complaints but real estate and rental prices are really high meaning I would have to take on a job I really don’t like just to keep spinning my hamster wheel just to make it.  I prefer being able to have the time to do what i really want to do in a place like Ecuador.  


Lithuania:  Lived and worked in Vilnius for 1 month.  Too cold for me, if I’m going to be sitting through a snowy winter I better have some mountains to ski nearby.  

Italy: Lived in Ascoli for 1 month. Stunning little town on the Adriatic coast where I spent time with long lost relatives, but how would I make a living and the high prices scare me.  The Ecuador economy seems to be moving faster and i see more opportunities in Ecuador.  


Mexico:   Lived in Chihuahua  for 1 month.  If I weren’t in Ecuador I would probably be in Mexico, I love the place, the food, the culture, the people but I rarely felt “at ease” in most parts of this country. 


Peru:  Lived in Lima for 1 month. The coastline of Peru is akin to the Sahara Desert.  Seriously, all the way down!  I’m talking sand dunes and trash blowing in the wind, cool to visit, but Ill stick with living in Ecuador.  


Bolivia:  Lived in Santa Cruz for about 1 month. Nice place with a lot of variety like Ecuador but with no beach.  Economy particularly bad, don’t think I could make a living here like Im doing in Ecuador unless I worked online.  Ecuador wins.  


Brazil:   Lived in Rio and Porto Alegre for about 1 month.  Beautiful place, really high prices, even more costly than the USA these days, it kind of squeezes the fun out of everything.  I’ll stick with the low costs of Ecuador for now.  


Uruguay:   Lived in Montevideo for 1 month.  In my month living in Montevideo I coudn’t figure out why anyone would want to live there?  The beaches are not tropical like most northern US beaches, and you’re really far from the States.  More organized than Ecuador yes, but Ecuador is more “latin” which to me makes it more interesting.  


Argentina:   Lived in Buenos Aires for 1 month.  Never saw people party until daylight… regularly.  And the beef is as good as advertised, so is the wine, and the country is incredibly diverse but the increased cost of living over the last few years and hyper-inflation is a concern for me here.  


Colombia:   Lived, worked and studied here for 1 year.  Colombia may seduce you at first sight as it did me but the culture struck me as simply “wierd” and “tense” after years and years of violence, the drug trade, and being closed off from the rest of the world.  I’ll stick to the more laid back Ecuadorians any day.  


Philippines:  Lived and worked online here for 5 months.  Dirty.  Poor.  Usually i don’t mind it but this place is on another level.  Hot and flat.  Didn’t like the food.  Nice people though who really like foreigners and try to make them comfortable.  Far away from US.  Makes Ecuador look like Beverly Hills, Ecuador much more developed.  Like in most Asian countries there are restrictions against foreign ownership of land limiting possibilities.

Thailand:   Lived and traveled here in Krabi area for 1 month.  Too on-the-beaten-track for me, just hoards and hoards of travelers.  Beaches are amazing, but language is too difficult, Spanish is easier making it easier to integrate with the locals of Ecuador.  


Malaysia:   Lived in KL for 1 month.  About the next blandest place I’ve seen after my hometown of Cleveland, Ohio.  For me, Ecuador has better food, weather, lower prices and more things to do.  


Dominican Republic:   Lived in Santo Domingo for 6 months.  Beautiful beaches and people, vibrant culture and lively music but the public transport was deficient, food was nasty and there were too many guns.  It seemed as though literally every male member of society had one tucked in his pants.  Didn’t make me feel very safe.  Ecuador outlaws guns which for me makes me feel more comfortable than the other extreme which is the DR.  


Vietnam:   Lived in Mui Ne and Hanoi for about 1 month.  Great food!  But here I really felt like a walking dollar sign most of the time, the locals really try to grossly overcharge you whenever they can.  In Ecuador it is not so in-your-face.  


China:   Worked in Shenzhen and Guangzhou for 5 months.  Dont live in southern China in the winter!  You see, the Chinese government outlaws heat in homes below a certain point but trust me, you need heat, its cold, freezing cold inside the apartments in the winter.  I found China hard to get a grip on, I’ve never been more lost, more often as I was there.  Overall I found it good for westerners to make money, but I bet few would consider it a better place to live than their home countries.  


India:  Worked in Bhopal for 1 month.  I’ve never seen so many guys just standing around in the streets all day.  Like most foreigners working in India, one moment I loved india, the next I hated it.  Generally, I felt like a walking dollar sign here while many locals tried to hussle me.  Others were incredily nice inviting me into their home upon meeting them.  Too much of a challenge for me, and too hot, I’ll stick to Ecuador for now.  


Egypt/Israel:   Lived here for almost 1 month.  Countries of extremes and it starts with the people.  Met some incredibly friendly people and the exact opposite, usually within the same day, would not consider this place as one to live in near future.  Politically and socially unstable making me weary about investing.

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

First Name
* Email
* = Required Field

Where’s best for you on the coast of Ecuador?

Like flat oceans good for swimming?  

Or maybe rockin’ waves?  

How about lush green jungle right to the water’s edge?

Or dry-as-a-bone landscapes with low humidity?  

For such a small country, the Ecuador coast has it all… so where should you begin?

Here are my top picks…

flat ocean good for swimming, snorkeling– Salinas, Ayangue, Punta Blanca

surf towns/ good waves– Montanita, Ayampe, Playas, Canoa, Mompiche

Sunniest beaches– San Clemente, Playas

wide, flat beaches good for walking– Playas, Olon, Atacames, Muisne

scuba / hand gliding / kiteboarding / fishing– Ayangue (scuba), Canoa, Crucita (hand gliding), Santa Marianita (kite boarding), Salinas (fishing)

green, lush right up to water edge– Olon, Ayampe, Jama, Mompiche, Muisne, Same, Puerto Cayo

dry, brown, low humidity and less mosquitos– Salinas, Playas, Punta Blanca, Ballenita, Santa Marianita, Manta, Crucita, Machalilla, Cadeate, Valdivia

Quiet spots near the action and shopping– Ballenita, Crucita, Manglaralto, Olon, Canoa, Atacames, Tonsupa

Bigger cities with health care– Salinas+ Santa Elena, Manta, Esmeraldas, Bahia, Pedernales

White sand beaches– Playa Rosada, Muisne, Atacames, Tortuga Bay (Galapagos), Isabela Island (Galapagos)

Palm tree forests to waters edge– Cojimes, Muisne

Established expat community– Salinas, Olon, Puerto Lopez, Manta, Crucita, San Clemente-San Jacinto, Bahia

Off the beaten track/ no foreigners– La Libertad, Chanduy, Palmar, Valdivia, La Entrada, Tunas, Pedernales, Cojimes, Muisne, Esmeraldas

People watch/ women in bikinis, men in thongs/ party towns– Montanita, Canoa, Atacames

Beachfront condos in highrises– Salinas, Manta, Bahia, Tonsupa

Large lots of vacant beach land– Jama area, Cojimes, Muisne

Gated beach communities– Manta area, Salinas area

Beachfront property on smaller lots– Same, San Clemente-San Jacinto, Ballenita, Cadeate, Canoa

Bird and wildlife watching– Isla de la Plata (Puerto Lopez), Everywhere in Galapagos

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

First Name
* Email
* = Required Field