Ecuador will impose a 25% safeguard tariff on imported liquor.

Ecuador will apply an additional 25% safeguard tariff on imported liquor, adding new pressure to a market that was already facing higher taxes and the prospect of steep retail price increases.

The measure, reported by El Comercio, adds a new charge on top of the existing import tariff for alcoholic beverages. The government’s stated goal is to curb imports, limit the outflow of foreign currency and protect the domestic economy. The safeguard was set to take effect the following Wednesday.

Products covered by the new surcharge include sparkling wine, malt beer, vodka, pisco, cream liqueurs, aguardiente, whisky, wine, rum, gin, grape must used for winemaking and extracts used to produce brandy, according to the report. Because the tariff applies to a broad range of imported drinks, the move is likely to affect pricing across several beverage categories, from wine and spirits to some beer products, while also putting pressure on importer margins and distribution channels.

The safeguard comes after an earlier change that began in January, when Ecuador revised the formula used to calculate the Special Consumption Tax, known locally as ICE. Industry representatives said that change alone could drive prices up by as much as 400%, depending on the product. The new 25% safeguard adds another cost layer to a sector that says it was already under severe strain.

El Comercio reported that imported liquor in Ecuador had already been selling at more than double the price seen in neighboring countries such as Colombia. The newspaper cited the example of a bottle of whisky that cost between USD 30 and USD 35 in Colombia, compared with about USD 75 in Ecuador, after years of tariffs and taxes introduced since 2009.

Felipe Cordovez, president of the liquor industry association, told the newspaper that the combined effect of the tax changes could become unmanageable for businesses and consumers. He said that, based on the industry’s calculations, a one-liter boxed wine from Chile that was selling for about USD 6 could rise to roughly USD 25 under the new ICE calculation, even before the additional safeguard tariff was included.

The full impact had not yet been felt in stores at the time of the report because importers were still selling inventory already held in warehouses. The sector also said there were still unresolved questions about how the Internal Revenue Service, known as the SRI, would apply the revised ICE formula, and companies were seeking clarification from tax authorities.

Industry concerns extend beyond higher shelf prices. A broad rise in import costs for wine, spirits and beer can affect product mix, purchasing plans and sales strategies for distributors, retailers and restaurants. It can also shift demand toward lower-cost alternatives or locally made products. If price gaps widen too far, market participants have warned that illicit trade could become more attractive, although that outcome would depend on enforcement and consumer behavior.

Cordovez told El Comercio that some companies in the sector could be forced to shut down if the new tariff remains in place alongside the revised tax regime. He said the industry had recently presented its concerns in a meeting with government officials, who, according to him, had offered to review the situation. Even so, companies had already begun placing new foreign orders and were now facing uncertainty over their future costs.

The government has also signaled that it expects greater risks of smuggling as import restrictions and tariffs rise. Richard Espinosa, who was serving as coordinating minister for production, announced a package of incentives and the creation of an elite intelligence group to fight contraband at the border. On March 8, Ecuador’s customs authority, Senae, said the plan had already started.

Under the program described by officials, the anti-contraband unit would operate both inside the country and at border points. Authorities said part of the value seized from improperly documented cargo containers would fund incentives. Half of that amount would go to an incentive program, with 50% of the incentive pool assigned to the unit carrying out the operation, 25% to the supporting unit and the rest to a reward fund for people who provide reliable information on smuggled goods.

Officials also said the reward system would apply broadly to smuggled merchandise, though not to liquor and food, which cannot be auctioned and must instead be destroyed. Even in those cases, authorities said there would still be financial compensation tied to enforcement efforts.

The new safeguard puts Ecuador’s imported beverage market at the center of a broader policy push that combines tax changes, trade barriers and tighter customs controls. For importers and distributors of wine, beer and spirits, the immediate issue is the added 25% charge. For consumers, the most visible effect is expected to be higher prices in a market where imported alcohol was already expensive.