Though the Ecuador export tours we have sponsored take place in the north of Ecuador… there is also great export potential in the south. Ecuador Ateam member Stephen Midden reports.
by Stephen Milden
One of the many things we love about Ecuador is the fact that people make things here. We know the names of the craftsmen who made our furniture, kitchen cabinets, doors, windows, etc. which is very different than going to Home Depot or Levitz Furniture. We were able to design each piece and got something hand made of great quality.
In each area of Ecuador there seems to be one thing in particular the people are known for. In Cotacachi, for example, it’s leather goods. In Cuenca it’s carpentry, Gualaceo is famous for shoes and in Chordeleg it’s jewelry.
Chodeleg’s Main Square
Chordeleg is a small town located about 45 minutes outside of Cuenca and while you can buy Panama Hats, pottery and other items, what it’s mainly known for is jewelry. Occasionally my wife, who swears she doesn’t like jewelry, suggests we take a ride in the country and go visit Chordeleg. Given that 98+% of what one would see is jewelry, I have come to suspect that there must be something in the air that she has to experience a couple of times a year. The fact that the photo below is what she’s bought in Chordeleg the last few visits perhaps it’s not something in the air.
My wife’s growing jewelry collection
What you can’t see in the photo is the quality of the workmanship. This last trip Leanna purchased a couple of rings that to me were easily worth hundreds of dollars yet she only paid $35-40 each for them.
While silver is the predominant metal seen, gold and stainless steel can also be found. The detail and variety of what is available is surprising. From antique looking pieces….
To what I think is called cloisonné..
to fine filigree that is so intricate I have no idea how they do it…
However one look at these hands that have been doing this for many years and it is clearer.
If you’d like to come and take a look for yourself, please let me know and I’ll be happy to set you up with one of our drivers to explore the area. Stephen
Improve the quality of your life, expand your horizons and reduce the tax you pay as you increase asset protection by having an overseas company and overseas income!
Join other like minded souls in Ecuador. Learn how to gain freedom and self fulfillment through an Ecuador export business.
In wood products.
In Ecuador’s art.
In jewelry and all types of exports.
The ultimate form of financial security is to serve in a way you love through your own business.
Improved technology continually makes this easier but increased ability to serve is often hindered by red tape.
Almost everyone has heard of the Texas Rangers. They are the oldest law enforcement body on the North American Continent and have helped bring in many famous criminals like John Wesley Hardin and Bonnie and Clyde.
We were really tickled to hear from a delegate of the Ecuador Export tours that he had sold hundreds of embossed Ecuador leather backpacks to the Texas Rangers and that was just the first order. However it turned out that there was one thing that even these famous lawmen could not overcome…. red tape.
Almost no one has heard of the 106 rules the current administration has passed in the last three years that collectively will cost taxpayers more than $46 billion annually in compliance and lost productivity.
As you’ll see below the process of shifting from a small to medium or large Ecuador exporter requires a lot and growing amount of red tape… so much so that it overwhelms even the large Ecuador rose farms.
However there are two rays of sunshine that can help with this problem. The first is the The Red Tape Reduction and Small Business Act (H.R. 4078).
The website of the Oversight and Government Reform Committee wrote a report that says: July 26, 21012 the House Passed the “Red Tape Reduction and Small Business Job Creation Act”. Measure freezes new job-killing regulations and streamlines rulemaking process.
(WASHINGTON)—The House of Representatives today passed a comprehensive regulatory reform bill to cut red tape and make the federal rulemaking process more friendly to job creators. The measure included several provisions previously passed by the House Committee on Oversight and Government Reform.
“The Obama Administration has issued some 106 rules in its first three years that collectively will cost taxpayers more than $46 billion annually in compliance and lost productivity. This is four times the number of major regulations and five times the cost of rules issued in the prior administration’s first three years,” Oversight and Government Reform Committee Chairman Issa said.
“In more than 30 hearings, examinations and public forums, our Committee has heard loud and clear from job creators across the country who tell us that red tape imposed by the federal government chokes economic expansion and hurts job creation. Nonpartisan research surveys report that the American public feels the same way—with an overwhelming majority saying federal regulations are a major reason why the economy is struggling. This bill helps unwind much of this unnecessary red tape and frees entrepreneurs and business owners to do what they do best: create jobs and opportunity,” Issa added.
See a link below to The Red Tape Reduction and Small Business Act (H.R. 4078).
This is why we are pleased to introduce the second bit of good small business news, a new benefit for our Export Service delegates.
First, let’s look at the red tape to export from Ecuador to the USA.
#1: A US company.
#2: A continuous bond, which has to be purchased each year to be eligible to register to import with the US Customs.
#3: A broker who has a power of attorney authorizing them to handle your imports.
#4: A US bank account to pay US customs department when taxes and duties are due.
Plus if you are selling direct to customers and accepting credit cards, you need:
#1: A verifiable credit history and Social Security number.
#2: A gateway company to process the charges.
#3: A credit card merchant account.
#4: A certified, secure shopping cart.
#5: An annual PCI compliance review and certification
#6: An EIN number provided by the IRS
#7: A sales number issued by the state of Florida.
#8: A Physical US address (PO box not allowed).
#9: Monthly accounting system.
#10: IRS annual sales report.
This along with the 106 new regulations adds so much expense and bother that even the large rose plantations in Ecuador cannot keep up.
Fortunately there is a solution and a special benefit for you if you have an Ecuador export business.
Our import logistic provider sent me this note: Gary, A great new system has developed in Ecuador so that Flower Shops can now order direct from the rose plantations.
The way things have worked is that flower shops received their flowers from a local vendor, who got them from a distributor who got them from an importer, who dealt with a farm.
Or the flower shop purchased them from someone like me who buys them from a farm and ships them by FedEx.
This has expanded our business because in order to sell and import direct into the USA there is an endless list of things to do. (They are described above).
The Ecuadorshop Logistics service provides all these services for exporters in importers into the USA.
The farms can sell to the flower shops but have no way of charging them nor of getting the flowers through customs. Our company does everything for them as their logistics provider.
We charge the buyers credit cards, do the FedEx labels, send the tracking number, deal with customs, pay duties when rehired, use our bond and broker coordinate and pay the rose plantation.
The plantations find that complying with all these requirements is too expensive we do the entire logistic service.
The farm only has to grow, harvest and sell the roses. Our logistics service takes care of everything else.
Every farm I have talked to has signed with me.
I am happy to now provide an even more special exclusive service to your Ecuador Living Club members and export tour delegates.
I can provide our logistics service for Ecuador exports beyond roses.
There are two more very special benefits.
First, our logistics service can pay manufacturers in Ecuador.
Second, our service can monitor production and quality and assure timely delivery.
I have met many of your export tour delegates who have found really greet products that they sell really well. However once they return to the US they can’t restock unless they return to Ecuador.
If they do reorder but are not present for delivery, they are at the mercy of the manufacturer… which creates a huge quality control problem. These importers get whatever suppliers here send them.
Many don’t even try to reorder. They don’t know how. They don’t want to wire money without seeing the product and being are of delivery.
Many others just have no idea or find that the income is not worth the time, effort and cost of all the red tape.
The good news is that I do not get in-between the importer and buyer either. I set a price for my service and the importer knows his product cost.
Our service is provided for a set fee so the importer knows all costs and can price his product accordingly.
Turning your passion into profit with your own business makes sense in these technological times… if you can outrun growth in red tape. The Ecuadorshop logistic service can help stop red tape from putting your business in the red.
The ultimate form of financial security is to serve in a way you love through your own business. Exporting can be fun and fulfilling as well as profitable. Improved technology continually makes having your own global micro business easier if you can eliminate most of the red tape.