We have been asked to supply and install equipment in The Galapagos by A UK Charity who is the exporter?

Question

I am pricing up for this project in the Galapagos and I am unsure whether it will be our responsibility to cover any import duties or that of our client. We would be supplying and installing the equipment which is long term research apparatus but as our client is UK based and they will own the equipment it is a bit unclear who is exporting the equipment and I don’t want to get stitched up by not accounting for any import duty through Ecuador. All our other projects have been UK or EC based and when EC the customer has been based in that country so no confusion.

Answer

If I understand your question correctly, you are quoting for a contract to supply equipment to a UK Charity and install the equipment onsite at a location in the Galapagos Islands. As a rule, I would expect the supplier (ie you) to include in their quotation all costs to ship the goods to the point of installation, clear them through Ecuadorian Customs, and therefore pay all import duties & other costs. If this is the case, you should quote the Charity with delivery terms of Delivered Duty Paid, including installation. If you have any doubts on this, you might want to check with the charity whether this is what they are expecting you to do, or whether they wish to make different arrangements for shipping charges, Customs clearance & duty charges. Whatever agreement you come to with them, you need to specify the terms of delivery on your offer, preferably making reference to Incoterms 2010 (to avoid any misunderstanding).

This sounds like an interesting project, and if you do go down the route I suggested above, and include all shipping costs, I would strongly recommend that you get quotations from experienced freight forwarders, preferably ones with experience in that market, and an office or representative in Ecaudor to give you the freight costs and carry out the shipping – depending on the size of the goods, it might even be worth using a specialist project freight forwarder. Bearing in mind the special conditions which apply to the Galapagos Islands, you may need to transport over some of the equipment you will use to install the equipment (lifting gear?)

Answer

Dear Peter,
I suggest if you are selling the goods to another UK company who in addition is a registered charity it would be easier to sell the goods to them as usual on one purchase invoice. In that way they can export and re-import the equipment on a temproary export basis.
The Galapagos is such a rare route in this industry that you will find it is quite expensive to export to. Also because of the laws in Ecuador being a bit more shall we say "fluid" than our own I suggest not getting involved in the movement.
You could sell them the goods on a payment upon return basis thus you would be in control of all the costs and thus re-sell the service at a profit. You would need to get in contact with a agent in Ecu with a good grasp of what you want to do and go from there. I could link you up with someone in our network if you want?
I am just expressing my opinion I dont want to seen as be giving a biased response.
Good Luck

Glenn Hayes glenn@embassyfreight.co.uk

Answer

Hi Peter

Agree with Glen, shipping to the Galapagos Islands will be a very specialised service and in the first instance you should ask your client to recommend a forwarder or service they have previously used. If this is not available then a recommendation from one of the other scientific camps on the islands would be your next point of call. Hopefully this will greatly lower the risks involved with the shipping/clearance and final delivery.

Recommended reading

http://www.darwinfoundation.org/english/_upload/procedure_handbook_cvs.pdf

I believe section four gives some detail on logistics.

Hope this helps

Kind Regards

David

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