PROHIBITED AND RESTRICED GOODS

Drugs, narcotics, food, pornographic material, live plants, firearms, ammunition, tires and Household Appliances (refrigerators, freezers, dehumidifiers, etc) that operate with compressed gas containing CFC's or with fluids type R-12 or R-502 are strictly prohibited. - Alcohol, cigarrettes are restricted.

CUSTOMS REGULATIONS

New Customs Law issued by the Ecuadorian Congress, and published at the Official Register On May 3rd 2003, verification at origin for shipments whose value for customs is equal or greater than US$ 4000= is mandatory.

The issuance of a Marine or Air Transport Insurance for the international transportation leg of the shipment by Companies Established in Ecuador is being enforced in this law to determine the CIF value of the shipment and is one of the documents to be obtained in Ecuador to request the verification at origin.

Contact will be made with the Ecuadorian Insurance Company or broker to obtain the local Insurance Policy, costs to be informed and billed, including handling fees, to customer in Ecuador or Origin Agent, accordingly.

Once the previous steps are fulfilled a "GREEN LIGHT" will be given to proceed with the embarking of shipment.

In the event of a shipment arriving to Ecuador without the Inspection Certificate. - The Customer has 15 Working days upon the arrival date of the shipment to request Ecuadorian Customs Authorities at Port/Airport of shipment's arrival: re-embarkation, in this case Customer's presence is needed to sign personally this request and present additional obligatory documents, as per Customs Procedures valid at that time. - If in this period of time, Customer does not apply for it, Customs will confiscate the shipment.

Only the following imports are exempted of Verification at Origin:

1. Imports destined for the Diplomatic and Consular Sector
2. International Transit Regime
3. Traveler's accompanied baggage
4. International Mail Traffic and Courier
5. Border Traffic

It is important to differentiate between [Declared Value For Customs] and [Declared Value for Insurance].-Also it is recommended that these figures are not indicated on MAWB,HAWB,MBL or HBL.-The process of assessing values to the shipment based on the consularized list is a careful coordination between Customer, Origin Agent, Customs Broker and INSA.

In any case, the Door to Door Insurance, purchased by the Customer is a different document, not requested by Customs.-Please inform if by T.I.M.N. Insurance Program, there would be an insurance conflict regarding this matter to prevent any confusion and misunderstandings with claims arising under the Door to Door Insurance in the event a complete loss during international transportation arises.

HOUSEHOLD GOODS

Household goods and personal effects are allowed duty free for:

1. Foreign diplomats
2. Ecuadorian diplomats
3. Ecuadorian citizens returning after finishing official assignments in International Organizations recognized by the Ecuadorian Government
4. Ecuadorian citizens returning after a minimum if one (1) year of legal residence abroad (resident visa from the country where they return from is required)
5. Foreigners with immigrant visa
6. Foreigners with non-immigrant working visa

REMARKS:
Only one item per article is allowed. Additional items are subject to payment of duties and fines or confiscation

Returning citizens will not be eligible for duty free importation in they have stayed in Ecuador for more than 30 days during the last year of abroad residence.

The shipment must arrive up to 60 days AFTER the arrival of the consignee.

Shipments on which all conditions are not fulfilled will be subject to payment of import taxes (approx. 43% of CIF value, calculated by Customs after inspection)

The OBL/AWB and cargo documentation must have the consignee�s R.U.C. (Ecuador tax contributor unique register, if the consignee is a company)), ID number (if importer is an Ecuadorian natural person) or passport number (if other than Ecuadorian). If the cargo is consigned to THE OTHER, the notifies R.U.C., ID or Passport number must be indicated.

NEW REGULATIONS IN EFFECT SINCE MAY/03

Except for diplomats, household goods and personal effects shipments valued over $ 4,000.00 (declared value for Customs purposes only, not full replacement value), must be inspected an origin before embarkation. Inspection authorization will be requested by the destination agent in Ecuador. Lack of verification at origin will cause immediate re-embarkation of shipment. Cost of verification is 1% of FOB value (min.$250.00) and taxes approx. 2 weeks.

Transportation Insurance policy must be taken in Ecuador (for Customs purposes only, does not replace regular door to door insurance certificate issued at origin).

ADDITIONAL NOTE:
Since this is a reference value only, most airfreight and single container (up to 1x40' ) shipments can be valuated under $4,000.00. Before routing your next shipment consigned to Ecuador, please e-mail the packing list to your destination Agent as soon as available in order to confirm if this is a suitable option for this particular shipment.

DOCUMENTATION NEEDED

1. Original passport with stamped visa
2. The property of goods must be demonstrated by means of the buying documents or with a sworn declaration stamped by an Ecuadorian Consul at origin, in which is evident the detailed and complete list of household goods and working equipment included on the shipment. There will be no exceptions to this requirement
3. 2 Originals of OBL / 1 original of AWB (please see consignment instructions below)
4. Work contract valid for more than one year (foreigners only)
5. Resident visa from the country they return from (returning citizens only)
6. Migratory Certificate, issued at destination by Migration Police prior to presentation of Customs declaration (not applicable to foreign and Ecuadorian diplomats)
7. Verification certificate (issued by Inspection Company)
8. Transportation Insurance policy issued in Ecuador

REMARKS:
If the visa is not stamped on arrival, a $2,000.00 refundable guarantee must be presented. If the working visa is not presented to Customs within 90 days, the guarantee will not be reimbursed and Customs duties will be applied.

Returning Ecuadorians must present the resident visa from the country they were living in.

Except for diplomats, detailed physical inspection at the port of entry is mandatory

If non-declared items are found during inspection, this will be considered a felony and will be severely punished.

1. Original passport
2. Inventory list (no Consular seal needed)
3. 2 Originals of OBL / 1 original of AWB
4. Official Franchise from the Ministry of Foreign Affairs approved by Customs
5. If a motor vehicle is included, original invoice

MOTOR VEHICLES

Except for diplomatic shipments, importation of used motor vehicles is prohibited. To import a motor vehicle, it must be brand new, it must be inspected at origin before embarkation (even if it is sharing a container with household goods) and an import permit must be previously approved in Ecuador. Motor vehicles are subject to duties (approx. 65% of CIF value).

IMPORTANT NOTICE

Customs clearance process takes approximately 4-5 weeks in Guayaquil and approximately 2 weeks in Quito. Please make sure that consignee is informed.

Please send Company a copy of the OBL as soon as it is issued.