International 4×4 package deliveries will cost an extra $20 but businesses say it’s not enough

The government announced Monday that most deliveries of packages from overseas will cost an additional $20 beginning June 16. The tariff is applied to the popular 4×4 delivery system and will have the biggest impact on purchases from online sellers Temu, Amazon and Shein.

4×4 packages deliveries from overseas will cost $20 more June 16.

According to the Ministry of Production, the new charge is intended to protect Ecuadorian industries, particularly clothing manufacturers, who claim they cannot compete with Chinese imports.

The 4×4 system currently allows duty- and tax-free deliveries of up to four kilograms and a maximum value of $400, with an annual cap of $1,600 per household. The government says the benefit will be maintained for Ecuadorian migrants, for whom the 4×4 system was originally designed.

The new charge was approved by the Foreign Trade Committee (COMEX), which said more than 90% of deliveries are of merchandise from China. According to COMEX, 6.8 million 4×4 packages entered the country with a FOB value of $502 million in 2024, an increase of 91% over 2023.

Only 4.3% of 4×4 deliveries arrived from migrants last year.

“The system’s purpose has been distorted by commercial interests, and the tariff is intended to correct that distortion,” the committee said in a statement. “The objective is to protect formal employment and national production, prevent smuggling, ensure fair trade and recover resources that are lost today due to market distortions.”

The corporation ¡Mucho Mejor Ecuador!, which represents hundreds of small businesses, said the charge is a “good start” but says it should be much more. In addition to doubling the tariff, the corporation recommends that the 15% national VAT be applied.

Another small business lobby, the Pichincha Business Cooperative, said the charge should be based on the total cost of 4×4 merchandise. “It is not logical to apply a blanket tariff,” the coop said. “Why would someone who makes a $20 purchase from Temu be charged 100%, when someone who makes a $400 purchase pay 5%?” Like ¡Mucho Mejor Ecuador!, the coop wants overseas purchases to be charged the 15% VAT.