| Ecuador: Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation | ||
| Indicators | Score | |
| 67 | Are business licenses available to all citizens? | 81 |
| 68 | Are there transparent business regulatory requirements for basic health, environmental, and safety standards? | 100 |
| 69 | Does government effectively enforce basic health, environmental, and safety standards on businesses? | 33 |
Indicator and sub-Indicator Details
| 67 | Are business licenses available to all citizens? | |||||||
| 67a: In law, anyone may apply for a business license. | ||||||||
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Comments: The Constitution gives the right to free enterprise , any person can apply for a business license. The free enterprise must be framed under the law, that is to say, the business licenses are not allowed for activities explicitly prohibited by law. References: National Constitution: Article 23 No.16, Libertad de empresa
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| 67b: In law, a complaint mechanism exists if a business license request is denied. | ||||||||
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Comments: This law recognizes the right of petition , by which citizens have the right to present claims to a public authority. The claim should be resolved in a term not greater of 15 days after its date of presentation. In all cases if the Agency during the closing date does not have a decision the claim is approved (administrative silence). References: Art. 28 Ley de Modernización del Estado.
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| 67c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period. | ||||||||
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Comments: When a person wants to import a good, there are three import regimens, which are: free import, subject to import license and forbidden import. Inside the subject to import license regimen, the importers should declare the imports before the shipment of the goods in the Unique Document of Import. The Central Bank and the other bank entities should allow the importations realize and they grant the automatic license in 10 days. But in the case that the imported goods need a previous license like sanitary license etc., there is a non-automatic import license and applications are not always approved. When the non-automatic licenses of import are approved, these are granted between10 to 60 days.
References: Cómo exportar a Ecuador (Embajada de Brasil en Ecuador)
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| 67d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost. | ||||||||
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Comments: No exact cost exists. Once the information of the importer is given to the Central Bank, the importer can enter to Central Banks Web site, and put the quantity and the value of product. Automatically ,the system will calculate the cost of the importation and the institutions from which to request a license.
References: Cómo exportar a Ecuador (Embajada de Brasil en Ecuador)
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| 68 | Are there transparent business regulatory requirements for basic health, environmental, and safety standards? | |||||||
| 68a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available. | ||||||||
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Comments: The Constitution gives the right to health, therefore the licenses must be offered based on the law and with transparency. Additionally there are several laws in which where standards of public health are established, among them we can mention the following, the Law of Helath (Ley orgánica de salud) and Regulations for the licensing of the services of health (Reglamento para el licenciamiento de los servicios de salud) . References: National Constitution: Article 42, 43,44 and 45, Derecho a la Salud . Ley de Transparencia y acceso a la información pública
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| 68b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available. | ||||||||
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Comments: The environmental standards are transparent. There are several laws which establish public environmental standards. References: Ley del Sistema Ecuatoriano de Calidad Acuerdo Ministerial 154, Registro Oficial 61, 1984/11/08 Ley de Transparencia y acceso a la información pública
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| 68c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available. | ||||||||
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Comments: The Law of the Ecuadorian System of Quality (Ley del Sistema Ecuatoriano de Calidad) , mentions among its objectives to guarantee the compliance of the civic rights related to the security, the protection of the life and the vegetable, animal, and human health, the preservation of the environment, the consumer protection against deceitful practices and the correction and sanction of these practices. References: Article 1 Ley del Sistema Ecuatoriano de Calidad Acuerdo Ministerial 154, Registro Oficial 61, 1984/11/08
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| 69 | Does government effectively enforce basic health, environmental, and safety standards on businesses? | |||||||
| 69a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner. | ||||||||
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Comments: The Metropolitan Address of Health of the Quitos Municipality carries out inspections of the control of the last food chain, which means after the consumers already ingested the foods. But this control is not enough to guarantee efficiency and effectiveness. There is not information in other places of the country. References: Seminario-Taller Proyecto Piloto de Inocuidad de Alimentos en la Zona Norte-Distrito Metropolitano de Quito.
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| 69b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner. | ||||||||
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Comments: The inspections could be carried out by: "comisarias" (Municipal Level) and "Defensoria del Consumidor"(the last one is an agency within the National Ombudsman). Their scope is local. The Quito´s Municipality carries out inspections for the industrial, commercial and services activities. These activities may fulfill the environmental standards. The contamination of the air of Quito is due to the emission of particles that contribute to the global warming. These activities may show a detailed report about physical-chemical characteristics of their emissions biannually as control mechanism for preventing the contamination of the air. In the case that, these activities do not fulfill environmental standards, they may pay a penalty.
References: Plan Maestro de Gestión Ambiental 2004-2010.
Peer Review Comments: Ecuador's bus drivers reportedly have a "special" relationship with the police, leading to a favorable relationship regarding emissions. Ecuador's buses are notorious for their noxious exhaust and low compliance with emission standards.
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| 69c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner. | ||||||||
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Comments: It is not known if the Municipality carries out these classes of inspections. References: Municipio Distrital de Quito Metropolitano (Atención al ciudadano)
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