Ecuador economic port zone

Contecon Guayaquil S.A. (CGSA), International Container Terminal Services’ (ICTSI) subsidiary in Ecuador has presented a plan for the special economic zone at the Port of Guayaquil. The Declaration of Special Economic Development Zone (ZEDE) aims to strengthen the competitiveness of Ecuador’s exports.

“The ZEDE promoted by Contecon Guayaquil S.A., has an unbeatable location, next to the Guayaquil Maritime Port, whose scheme has an absolutely clear and stable regulatory framework that will enable the development of long-term financial and tax planning while also covering activities included in the prioritized sectors of the Ecuadorian economy,” explained José Antonio Contreras, CGSA general manager.

Robust framework in place

The ZEDE will be situated in an area adjacent to the Port of Guayaquil and offers a complete and stable regulatory framework of Ecuadorian legislation for the development of high-impact investments. Within the framework, the project generates added value to the supply chain and provides the State and business operators a competitive area for their activities as required by law.

To attract businesses, the ZEDE will offer several tax incentives that include exemption from Income Tax for the first 10 years of the project and reduction of 10 points from the tax rate for the next 10 years; exemption from Foreign Exchange Exit Tax for up to 20 years; exemption from Foreign Trade Taxes for a similar period, as well as Value Added Tax credit on local purchases; benefits in sectional fees and taxes, depending on the location and location of the project; and benefits in special customs processes for the scheme.

The Libertador Simon Bolivar Container and Multipurpose Terminal, located in the Port of Guayaquil, has been operated by CGSA since 2007 under a 20-year concession. The terminal handles containerized, general and bulk cargo.