Ecuador updates subheadings with differentiated ISD rates for 2026

The Ministry of Production, Foreign Trade, and Investments has replaced the annex of tariff subheadings benefiting from the differentiated rate of the Currency Outflow Tax (ISD) for the 2026 fiscal year, through Ministerial Agreement No. MPCEI-MPCEI-2026-0043-A, published in Official Registry No. 361 on Thursday, September 3, 2026. The decision, signed by Minister Luis Alberto Jaramillo Granja, nullifies the previous list and updates the goods applying for reduced rates to 1,123 subheadings.

The new list maintains the two differentiated rates established by Executive Decree No. 272 of December 30, 2025: 0% for subheadings in the pharmaceutical sector and 2.5% for those corresponding to other productive sectors. The regulation replaces the annex of Ministerial Agreement No. MPCEI-MPCEI-2026-0035-A of May 31, 2026, published in Official Registry No. 308 on June 18, 2026.

Regulatory Framework and Background

The differentiated ISD rate is based on Article 155 of the Reformatory Law for Tax Equity in Ecuador, which creates the tax on foreign monetary operations and transactions. Executive Decree No. 272 empowered the governing body for production, trade, and investments to determine, via ministerial agreement, the included subheadings and the criteria, conditions, and application parameters, with an annual fiscal ceiling defined by the Ministry of Economy and Finance.

The first list of 2026 was issued via Ministerial Agreement No. MPCEI-MPCEI-2026-0003-A on January 29, 2026, and was updated in May with 1,120 subheadings. The new version incorporates three additional items, supported by Technical Report No. 26-177 of July 22, 2026, prepared by the Directorate of Policies and approved by the Vice Ministry of Production and Industries.

The Novelty: Raw Material for the Tuna Sector

The update incorporates subheadings 0303.42.00.00, 0303.43.00.00, and 0303.44.00.00 into the list, corresponding to essential raw materials for the tuna processing sector. The technical report justifies the measure due to the insufficiency of the national supply compared to a processing capacity of nearly 550,000 annual tons.

• The tuna sector recorded total sales of USD 5.455 billion in 2025.
• Net income for the period reached USD 145.22 million.
• It generates 73,394 adequate jobs (March 2026).
• Imports of the three subheadings totaled 84,042 tons in 2025.
• Exported canned fish totaled USD 1.848 billion in 2025, with primary destinations in the European Union, Colombia, United States, United Kingdom, and Argentina.

Control and Monitoring

The agreement tasks the Undersecretariat of Competitiveness with technical support and coordination with the Internal Revenue Service and the National Customs Service of Ecuador for the ex ante and ex post control of the application of the differentiated rate. Additionally, it must submit a quarterly report to the Ministry of Economy and Finance on the impact of the measure on the productive sector.

The annex may be reviewed and updated according to the established criteria, conditions, and parameters, considering the monitoring information from the control bodies. In the event of the opening, splitting, or nomenclature update of a sub-heading that is already a beneficiary, it shall retain the rate assigned to the original heading, provided that the nature of the good and its productive use remain the same.

The update of the ISD list is relevant for importers, exporters, and the pharmaceutical sector, as it reduces costs associated with the import of raw materials and essential inputs not produced locally or with insufficient national supply. With the incorporation of tuna raw materials, the Government seeks to strengthen the competitiveness of one of the country’s strategic industries and sustain its export commitments in international markets.

Source: Official Registry of Ecuador, No. 361, September 3, 2026, p. 7 (official reference: Ministerial Agreement No. MPCEI-MPCEI-2026-0043-A).