Are the plans for the mining sector to be fulfilled, or not?

Throughout our lives, especially within the professional and corporate sphere, we are constantly making plans. These plans, in theory, should be related to the different challenges and opportunities we have or plan to have. However, the most important aspect of these plans is that we can execute them. Doing so signifies an achievement of objectives, beyond the results.

In October 2020, the Ministry of Energy and Non-Renewable Natural Resources (now the Ministry of Energy and Mines) developed and enacted the Mining Sector Development Plan 2020-2030. According to Minister René Ortiz Durán, the goal of this plan was to contribute to the fulfillment of both national and global objectives. It also represents a strategic vision for the development of the mining sector through the implementation of harmonious, efficient, transparent, and sustainable industry management.

On the other hand, in August 2021, through Presidential Decree No. 151, the Action Plan for the Ecuadorian Mining Sector was issued, which determined public policies to promote the sector’s development. These policies have been fundamental for certain decisions and actions of the government of Guillermo Lasso.

Now that the electoral campaign has ended, and Daniel Noboa has been elected, it is advisable to look back and review the plans proposed for the mining industry.

The “Multi-year Work Plan for the President and Vice President of the National Democratic Action Alliance” consists of 76 pages, and it emphasizes that investment in strategic sectors is a priority for national economic growth. It will promote the development of activities in hydrocarbons, mining, energy, electricity, telecommunications, water resources, and the environment. Regarding the topic we are analyzing, the ADN movement established three actions: i) promoting national mining production through delegation to private initiatives, cooperatives, and associations of popular and solidarity economy; ii) regularizing artisanal activities so that participants can affiliate with the IESS (Social Security Institute) and have access to healthcare and loans to improve their living conditions; and iii) conducting controls against illegal mining, coordinated by the armed forces and national police, to dismantle the involved mafias and gangs.

Apart from the legal nuances that the industry is currently facing, especially before the Constitutional Court, President-elect Noboa has the legal resources to carry out his Work Plan. However, it will be crucial for him to have a qualified team that, along with his political will, can implement what has been planned. We don’t know if they will plan something new, but it is essential that there is a clear work plan for the 18 months of his term to provide some certainty to one of the few sectors that can truly inject foreign direct investment into the country.


Carlos Torres Salinas
Senior associate at CorralRosales

Regulation for fintech entities

Through Resolution JPRF-F-2023-076 (hereinafter “Resolution“), issued on September 11, 2023, and published in the Second Supplement to the Official Gazette 402 of September 22, 2023, the Board of Financial Policy and Regulation (hereinafter “JPRF“) enacted “Regulations for Fintech Entities”.

This Regulation aims to articulate the application of Ecuador’s Law for the Development, Regulation, and Control of Technological Financial Services (“Fintech Law”).

All entities that offer financial services or products centered on technology are required to:

  1. Comply with money laundering prevention regulations issued by the JPRF and the Banking Superintendency.


  1. Designate a primary and alternate compliance officer, both of whom shall carry out their duties at least on a part-time basis.

Particularly, this Resolution regulates digital credit-granting entities which encompass those institutions exclusively providing credit through electronic platforms.

Digital credit-granting entities shall refrain from soliciting funds for the purpose of intermediation and are obligated to establish provisions for the diverse credit segments they service in accordance with the percentages stipulated in the Resolution.

Additionally, digital credit-granting entities must consider and comply with the following provisions for their operation:

i.    Establish themselves with a minimum capital of two hundred thousand United States dollars (USD 200,000).

ii.    Prior to the beginning of their operation they must qualify as digital credit-granting entities before the Banking Superintendency.  Qualification requirements are yet to be defined, but they will encompass assessment criteria centered on risk management, cybersecurity, and information security.

iii.    Subject themselves to the oversight and regulation of the Banking Superintendency.

iv.    Provide direct credit, including credit cards, to all credit segments recognized in applicable regulations.

v.    Implement a thorough customer creditworthiness assessment process for which digital credit-granting entities must access the customer’s credit history.

vi.    Effect disbursements by means of transfers from accounts that the entity holds in the national financial system.

vii.    Ensure the rights and protection of financial consumers in accordance with the standards outlined in the Resolution and additional applicable legislation.

viii.    Adhere to regulations established for financial institutions with regards to portfolio classification, novation, refinancing, restructuring, and the write-off of obligations.

ix.    Establish a Risk Management Committee that will oversight and implement the necessary measures to ensure effective risk management.

x.    Designate a Chief Information Security Officer who must oversee the formulation of policies, objectives, and procedures aimed at preserving the security of the institution’s information.

Until Novembre 22, 2023 Ecuador´s Banking Superintendency must issue the requirements for the qualification of digital credit-granting entities.


Juan Fernando Riera, associate at CorralRosales
+593 2 2544144


DISCLAIMER: El texto anterior ha sido elaborado con fines informativos. CorralRosales no es responsable de ninguna pérdida o daño ocasionado como consecuencia de haberse actuado o dejado de actuar en base a la información contenida en este documento. Cualquier situación determinada adicional requiere la opinión y concepto específico de la firma en Quito / Guayaquil, Ecuador.


New provisions for correcting customs declarations subject to compensation

Through Resolution SENAE-SENAE-2023-0080-RE, issued on September 27, 2023, and published in the Second Supplement to the Official Gazette 412 of October 6, 2023, the National Customs Service of Ecuador made more flexible the deadlines for requesting the regularization of inventories due to shortages of goods identified after the import customs declaration (DAI) has been transmitted and the release has been carried out.

The importer is allowed to reduce the quantities declared in the DAI subject to compensation when it has been identified that the goods are not physically present. For this purpose, the importer must submit a request for regularization of inventories attaching the following documents:

  1. A sworn statement detailing the goods that did not arrive in the country; and,
  2. Documents justifying the cause of the shortage.

The request for regularization may be filed at the following times:

  1. Within 15 non-extendable days counted from the date of release of the goods. The Customs Authority will request the payment of taxes and resolve the regularization.


  1. Outside the term of 15 days, but within the period of permanence of the goods subject to the customs regime. The Customs Authority will request the payment of taxes, resolve the regularization, and impose a fine according to article 193(d) of the Code of Production, Commerce, and Investment.


  1. Outside of the period of permanence of the goods subject to the customs regime. The Customs Authority will request the payment of taxes, resolve the regularization, and impose a fine for non-compliance with the permanence terms.

If the Customs Authority identifies that the importer included false information in the sworn declaration, it will initiate the corresponding criminal actions against the importer in accordance with the Criminal Code.

Finally, the Seventh Transitory Provision allows importers whose regularization requests have been rejected to submit a new regularization request under the provisions of Resolution SENAE-SENAE-2023-0080-RE within 60 days from its issuance.

In the following link you can review the complete text of the Resolution:


Andrea Moya, partner at CorralRosales
+593 2 2544144

               Fernanda Inga, senior associate at CorralRosales
+593 2 2544144

NOTE: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm.



Some current (and other permanent) issues of Foreign Trade Operator (FTO) qualification – ADA Journal


DATE: 09-10-2023


Fernanda Inga



Our senior associate, Fernanda Inga, published an article in the Asociación de Agentes de Aduana de Guayaquil magazine in which she analyzes recent amends regarding Foreign Trade Operators (FTO), their classification and the procedure to acquire and renew authorizations from SENAE (Servicio Nacional de Aduana del Ecuador).

She explains that, following the approval of the Executive Decree 586, the law distinguishes two types of FTO, those that require an authorization from SENAE, such as customs agents, and those that do not require such authorization. These include importers, exporters, transporters as well as any person “intervening directly or indirectly in a foreign trade operation”, among others.

Fernanda also explains that, regarding changes to the procedure required to obtain and renew the previously mentioned authorizations, the approval procedure is immediate. “A previous inspection is not necessary, and the application must be attended within a maximum period of 45 working days from the admission for review of the procedure”, she explains.

Likewise, she clarifies that the requirements that did not correspond to the customs activity or represented an obstruction to the qualification were eliminated.

In that sense “it is no longer necessary to submit corporate documents, IESS contribution forms, municipal license, fire department operating permit, among others. Nor is it an obstruction to the qualification to have incurred in 5% of regulatory faults over the total operations”.

However, new requirements were also established, such as the implementation of the ISO 9001 quality management system and anti-bribery policies.

“The purpose of these reforms is for the FTO to have access to agile, simplified, and clear procedures. However, it is recommended that applications for authorization or renewal be carried out with the assistance of a professional expert in the technical and legal fields to avoid errors that may delay or hinder the process”, she adds, stating that “the main obstacles faced by the FTO derive from the presentation of erroneous documentation”.

To read the full article, click here (pages 12 to 15): REVISTA_ANIVERSARIO_2023_C.pdf (

The self-generation regime as an alternative to “regular” electricity consumption

Articles 261.7, 261.11 and 313 of the Constitution of Ecuador provide that the State has exclusive jurisdiction over natural and energy resources, and is responsible for administering, regulating, controlling and managing strategic sectors, including energy in all its forms.

In line with the above, Article 7 of the Organic Law of the Public Service of Electric Energy (“LOSPEE”) provides that it is the duty of the State to satisfy the need of the public service of electric energy of the country, through electric companies[1] authorized for such purpose.

Within this regulatory framework, private sector companies usually satisfy their demand for electric energy with that supplied by the electric company, under an adhesion contract[2], which establishes the conditions under which the service will be provided.  Under this scheme, the electric company issues a monthly invoice with the amount to be paid for the service, which is calculated based on a tariff[3] set by the competent authority and the consumption of electric energy during the month.

Additionally, the legislation contemplates the self-generation regime. Article 3 of the LOSPEE defines the self-generator as the “Legal entity, producer of electric energy, whose production is intended to supply its own consumption points, being able to produce generation surpluses that can be made available to the demand”; and self-consumption as “…the energy demand of the installation or facilities of a legal entity engaged in a productive or commercial activity, which in turn is the owner, shareholder or has shares in a self-generating company”.

In other words, the self-generation regime consists of a company (self-generator) that is authorized to produce electric energy for its own consumption points (i.e., the consumption of its shareholders or partners), and that can sell surplus energy to large consumers[4] and electric companies[5]. Therefore, the fundamental requirement for a company (regardless of its line of business) to benefit from the self-generation regime is to be a shareholder or partner of a self-generator.

Once this requirement is fulfilled, the self-generator must request from the Agency for Regulation and Control of Energy and Non-Renewable Natural Resources or Regulatory Body (“ARCERNNR”) the authorization of the shareholder company for its own consumption, according to the procedure established in the sixth general provision of Regulation No. ARCERNNR 001/23.

Once the above has been complied with, the self-generator may start supplying electricity to its partners or shareholders under the terms and conditions agreed upon by the parties. According to Regulation No. ARCERNNR 001/23, the company must remain at least one year as its own consumption of the self-generator with which it was qualified, except that, due to its characteristics of operational seasonality, it must periodically make changes of condition.

Once the minimum time of permanence has elapsed, the company may: (i) remain under the self-generation regime with the same self-generator with which it was qualified or with another self-generator; (ii) return to its original status as a regulated consumer[6]; or (iii) switch to a large consumer scheme. 

The main advantage of the self-generation scheme is the possibility of negotiating the conditions of the electricity to be supplied by the self-generator, unlike what happens in the “regular” scheme where the price is subject to the tariff set by the authority. Another advantage is that consumers in this scheme can choose self-generators from renewable sources, with which companies could meet environmental goals through electricity consumption with clean energy.

In summary, the self-generation scheme is attractive for companies seeking to reduce their electricity costs, in addition to using electricity generation in an environmentally friendly way.

[1] Article 3.7 of the LOSPEE defines an electric company as the “…legal entity of public or private law, whose enabling title entitles it to carry out activities of generation, transmission, distribution and commercialization, import or export of electric energy and the general public lighting service”.

[2] The LOSPEE identifies it as a “Supply Contract”. In this regard, paragraph 12 of Regulation No. ARCONEL 001/2020 states: “As a requirement for the energization of the new supply of the public electric power service, the applicant must sign a contract called “Supply Contract” with the distributor. This contract shall contain the rights and obligations of the distributor and the consumer, as well as the conditions under which the service will be provided. For the application of this numeral, the provisions of Regulation No. ARCONEL 002/18 “Electricity supply contract model” or the one that replaces or substitutes it shall be observed.”

[3] Article 54 of the LOSPEE provides that the competent authority “… within the first semester of each year, will determine the costs of generation, transmission, distribution and commercialization, and public lighting – general, to be applied in the electric transactions, which will serve as the basis for the determination of the tariffs to the consumer or end user for the immediately subsequent year.” Additionally, Article 55 of the LOSPEE provides that the authority “…shall approve the tariff schedules, which, for the knowledge of the users of the system, shall be informed through the media in the country and published in the Official Gazette.”

[4] It is the consumer that meets the requirements established in Regulation ARCERNNR – 003/21 and has qualified as a “large consumer” before the competent authority. Once qualified under this regime, the large consumer must purchase all its electricity demand from qualified generators or self-generators.

[5] The regulation also refers to them as distributors. Article 4 of Regulation No. ARCONEL 001/2020 defines it as follows: “Distribution and commercialization electric company or distributor: Legal entity whose Enabling Title entitles it to carry out the activity of distribution and commercialization of electric energy and the service of general public lighting, within its service area.”

[6]  “Regulated consumer” is the denomination given to consumers who satisfy their demand for electric energy than that delivered to them by the electric company under a Supply Contract. Article 4 of Regulation No. ARCONEL 001/2020 defines it as follows: “Regulated consumer: Natural or legal person who maintains a supply contract with the electric distribution company and who benefits from the provision of the public electric energy service.”

Mario Fernández
Associate at CorralRosales