How to Pay Chinese Suppliers from Ecuador (2026)

Key takeaways

The US dollar is the only legal tender in Ecuador under Article 94 of the Código Orgánico Monetario y Financiero, so an Ecuadorian importer pays Chinese suppliers in dollars without any currency conversion.
The SRI publishes a general ISD rate of 5% for 2026, with 0% for imports of fuels and listed pharmaceutical tariff lines and 2.5% for listed productive-sector tariff lines.
The ISD applies to money sent or carried abroad in cash, by cheque, by transfer or by payment of any kind, with or without a bank, so an agent or courier route does not remove it.
The SRI presumes that payments made from abroad by Ecuadorian residents cause ISD, even when they are made with the company's own funds held abroad.
ISD paid on imports of raw materials, inputs and capital goods on the Tax Policy Committee list can be used as an income tax credit in the year paid and the following four years.
Ecuador's trade agreement with China entered into force on 1 May 2024, with more than 4,600 product types entering Ecuador duty-free from that date, as reported by Primicias.

How to pay a Chinese supplier from Ecuador: the short answer

An Ecuadorian company pays a Chinese supplier from its ordinary business account, because every account at an Ecuadorian bank is held in US dollars. Article 94 of the Código Orgánico Monetario y Financiero (COMF), the law that governs money and banking in Ecuador, makes the US dollar the only legal tender. The bank sends the dollars by SWIFT, the international messaging network banks use for cross-border payments, to the supplier's account in China or Hong Kong.

There is no exchange control to clear. What applies instead is the ISD, a tax administered by the SRI (Servicio de Rentas Internas), Ecuador's tax authority. The bank withholds it when the company sends money abroad.

The usual sequence for an order from China is:

Agree the price, the payment terms and the Incoterm with the supplier, and get a proforma invoice. An Incoterm is a standard trade term, such as FOB or CIF, that sets who pays freight and insurance.
Check the ISD rate for the goods: 5%, or a reduced rate if the tariff line is on a Tax Policy Committee list.
Pay the deposit by SWIFT, stating the purpose of the transfer as your bank requires.
Pay the balance against a copy of the bill of lading, the document the shipping line issues when it receives the goods.
Clear the goods with the Servicio Nacional de Aduana del Ecuador (SENAE), the customs service, and claim the trade agreement preference where the goods qualify.
Keep the ISD records for each payment, so you can use any credit or refund.

This guide covers the Ecuadorian side of each step. For the supplier's side, such as how Chinese factories invoice and why many ask to be paid in Hong Kong, see our general guide on how to pay suppliers in China.

The ISD on payments to Chinese suppliers

The ISD is charged on the transfer, sending or carrying of money abroad, in cash, by cheque, by transfer, by withdrawal or by payment of any kind, with or without a bank. The rate was cut in steps from 5% in 2021 to 3.5% in 2023, and returned to 5% from 1 April 2024. The rates published by the SRI for 2026 are:

Payment abroad	ISD rate in 2026
General rate, including most payments to foreign suppliers	5%
Imports of fuels	0%
Imports of tariff lines on the pharmaceutical sector list	0%
Imports of tariff lines on the productive sectors list	2.5%

Source: Servicio de Rentas Internas, Impuesto a la Salida de Divisas (ISD), tariff by year, as published on 29 October 2026.

On a US$40,000 order at the general rate, the ISD comes to US$2,000. If the goods are on the productive sectors list, it is US$1,000.

Exemptions, credits and refunds

Transfers abroad other than by card are exempt up to three basic unified salaries, with the period set in specific rules, and the excess is taxed. Banco Pichincha's transfer request form for companies applies this as an exempt base measured per fortnight. The same form states that the client authorizes the debit of ISD on transfers to tax havens or low tax jurisdictions regardless of amount.

ISD paid on imports of raw materials, inputs and capital goods on the Tax Policy Committee list can be used as an income tax credit in the year paid and the following four years, and unused credit can be refunded. Habitual exporters can also request a refund of ISD paid on imports of raw materials, inputs and capital goods used for exports. Ask your accountant which tariff lines on your import list qualify, because both the reduced rates and the credit depend on those lists.

Paying from abroad does not avoid the ISD

The SRI presumes that any payment made from abroad by an individual or company domiciled or resident in Ecuador is made with funds that cause ISD, even when no transfer leaves Ecuador and the payment uses the company's own funds abroad. Paying a supplier from an account outside Ecuador changes where the money sits, not whether the tax is due.

How the money reaches a Chinese supplier

Most Chinese suppliers invoice in US dollars, which suits an Ecuadorian buyer that holds nothing else. Many invoice through a Hong Kong trading company with a Hong Kong bank account. Whichever route you use, pay the company named as seller on the invoice.

Supplier asks for	How you pay from Ecuador	What to check
USD to a Hong Kong company account	SWIFT transfer from your Ecuadorian bank, with ISD withheld	The Hong Kong company is the seller on the invoice
USD to a mainland China account	SWIFT transfer from your Ecuadorian bank, or from a USD account abroad with ISD declared	The supplier's bank checks the contract and invoice before it credits the funds
Chinese yuan (CNY)	Ask your bank whether it sends yuan; Banco Pichincha's online service for companies has only dollar payments enabled	The supplier's quote in dollars may be simpler
Letter of credit	Your bank issues the credit; the supplier is paid against documents	Documents must match the credit exactly
Documentary collection	Banks release the shipping documents to you against payment	The supplier carries more risk than under a credit

Routes as described in this guide; bank details from Banco Pichincha's company transfer guide and request form; supplier-side checks from PNC Bank, as published on 29 October 2026.

What your bank asks for

Banco Pichincha's online banking guide for companies asks for the beneficiary's name, address, identification, account number and account type, and the receiving bank's BIC, which is its SWIFT code. It asks for the economic motive of each transfer. For an advance payment it requires the number of the DAU, the customs declaration, and tells users without one to enter "ANTICIPO" followed by zeros. The bank's paper form offers OUR, under which the sender pays all charges, and SHA, under which charges are shared. It states that funds may be credited after 24 hours for transfers to the Americas and within 48 hours to the rest of the world.

What the supplier's bank checks

China manages foreign exchange through the State Administration of Foreign Exchange (SAFE). As summarized by PNC Bank, the supplier's bank verifies each receipt against documents such as the contract, invoice and customs declaration, and the remitter and beneficiary must be the parties to the contract.

Deposit, balance and payment terms

The payment term decides when dollars leave Ecuador, when ISD is withheld and what you hold in return.

Term	How it works	Point to watch
Advance payment (deposit)	You pay part of the order before production, often 30%	ISD is withheld on the deposit; your bank may ask for a DAU number or the advance payment code
Balance against bill of lading copy	You pay the rest once the goods have shipped	Check that shipper, consignee and goods match the invoice
Supplier credit	The supplier ships first and you pay later	ISD is due when the payment goes abroad
Letter of credit	Your bank promises to pay the supplier when it presents documents that match the credit	Bank commissions and ISD apply; discrepancies delay payment
Documentary collection	Banks exchange the shipping documents for your payment, without a bank promise	The supplier carries more risk than under a credit

Payment terms as commonly used in trade with China; ISD from the SRI; advance payment data from Banco Pichincha, as published on 29 October 2026.

A letter of credit (LC) is a bank's written promise to pay the seller when it presents documents that comply with the credit's terms. A documentary collection sends the shipping documents through the banks, and you receive them only after you pay or accept a bill of exchange. A supplier that has not traded with you before may ask for an LC on the first order and accept deposit and balance on later orders.

What it costs: ISD and bank charges

For an Ecuadorian importer, the ISD is usually larger than every bank charge put together. The table brings together the cost items as published.

Cost item	What the source says
ISD, general rate	5% of the amount sent
ISD, listed productive-sector imports	2.5%
ISD, fuels and listed pharmaceutical imports	0%
ISD on transfers to tax havens or low tax jurisdictions	Debited regardless of amount, per Banco Pichincha's form
Bank commission for a transfer abroad	Set in each bank's published tariff; ask before you send
Charges of foreign banks	Banco Pichincha states it is not responsible for amounts debited by banks abroad
Returned transfer	Operating costs are deducted from the amount returned, per Banco Pichincha

Sources: Servicio de Rentas Internas, ISD; Banco Pichincha, company transfer request form, as published on 29 October 2026.

Send SWIFT payments with the charge code OUR where the supplier expects the full invoice amount. SHA shares the fees, so intermediary deductions come out of the amount. A payment that arrives short delays shipment while the supplier queries the gap.

Recover what you can. If the goods are raw materials, inputs or capital goods on the Tax Policy Committee list, record the ISD paid on each import so it can be used as an income tax credit over five years. The credit depends on the paperwork tying each payment to an import.

The China trade agreement and the documents

Ecuador's trade agreement with China entered into force on 1 May 2024. Primicias reported, citing the Minister of Production, that more than 4,600 product types enter Ecuador duty-free from that date, that 1,666 tariff lines are reduced gradually over 5 to 10 years, and that 1,089 lines are reduced over 15 to 20 years. Ask your customs agent which schedule applies to your goods and what proof of origin the agreement requires.

Stage	Document	Why it matters
Company file	RUC, the taxpayer number issued by the SRI; registration with the Superintendencia de Compañías	Banks and SENAE identify the company by it
Before ordering	Proforma invoice	Supports the deposit and its ISD
Each payment	Transfer request with the economic motive; DAU number where the bank asks; SWIFT confirmation (MT103)	Links the payment, the ISD and the import
After shipment	Bill of lading, commercial invoice, packing list	Supports the balance and the customs entry
For the preferential tariff	Proof of origin under the Ecuador-China agreement	Lets qualifying goods enter at the agreement rate
Clearance	Customs declaration filed with SENAE	Records the customs value
After clearance	ISD records by import and tariff line	Needed for the income tax credit or refund

Sources: Primicias (14 March 2024); Banco Pichincha; SRI. Typical sequence; requirements vary by product. As published on 29 October 2026.

The MT103 is the standard SWIFT message for a customer transfer and is the supplier's proof that the money left your bank. Keep the invoice number identical on the transfer, the commercial invoice and the customs declaration.

Agents, cash and crypto: what the rules say

Some importers pay through an agent who collects dollars in Ecuador and pays the supplier from an account abroad, carry cash, or use a stablecoin seller. The facts below are what an importer should weigh.

The ISD follows the money, with or without a bank. The tax applies to money sent or carried abroad in cash, by cheque, by transfer, by withdrawal or by payment of any kind, with or without a financial institution.
Payments from abroad are presumed taxed. The SRI presumes that payments made from abroad by Ecuadorian residents cause ISD, even when no money leaves Ecuador.
Crypto is not an authorized means of payment. On 12 August 2024 the Banco Central del Ecuador (BCE) stated that crypto assets are neither legal tender nor an authorized means of payment, and that it would refer their use as payment to the Fiscalía, the public prosecutor. It cited Article 98 of the COMF, which prohibits unauthorized means of payment.
Informal routes leave no ISD credit. The income tax credit depends on ISD paid and recorded against listed imports.
The supplier's bank may query it. China's rules expect the payer to be the party on the contract.

Where Helm fits

Helm is a financial technology company, not a bank. Accounts are held with regulated partner institutions. Helm serves companies registered in Ecuador. A Helm account gives your company USD account details in its own name, with a US routing and account number that receives ACH, Fedwire and SWIFT payments.

For an Ecuadorian business that buys from China, it works like this:

Pay suppliers in USD. Send international payments by SWIFT from your company's own account to the supplier's USD account in China or Hong Kong, with the rate, fee and expected arrival shown before you send.
Account for the ISD. The SRI presumes that payments made from abroad by Ecuadorian residents cause ISD, so record each payment and settle the tax with your accountant.
Collect from buyers abroad. Exporters can receive dollars from US buyers by ACH or Fedwire. Export proceeds kept abroad are presumed to cause ISD 6 months after the goods arrive at the destination port.
Stablecoins. The account can receive USDC or USDT and convert them to USD. Given the BCE's position that crypto assets are not an authorized means of payment, take legal advice before using them in trade.
Finance the order. Trade finance, such as supplier finance and working capital, is arranged case by case.

Each account has a named account manager, and review questions are answered in writing within one business day. Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment.

A checklist for paying a Chinese supplier from Ecuador

Check the ISD rate for each tariff line before you price the order: 5%, 2.5% or 0%.
Pay from the company that is the buyer, to the seller named on the invoice.
Give your bank the economic motive and, for an advance payment, the DAU number or the advance payment code it asks for.
Send each payment by SWIFT with charges set to OUR, quoting the invoice number.
Pay the balance against a copy of the bill of lading, or use a letter of credit for a new supplier.
Check the goods' schedule under the Ecuador-China agreement and get the proof of origin before they arrive.
Record the ISD paid on listed raw materials, inputs and capital goods for the income tax credit.
If you pay from an account abroad, settle the ISD the SRI presumes on payments from abroad.

For how other importers organize supplier payments, see the importers page.

Open a Helm account

USD, EUR and GBP accounts in your company's name, with a named account manager.

Open account

Questions

How do I pay a Chinese supplier from Ecuador?

Send US dollars by SWIFT from your company's account at an Ecuadorian bank to the seller named on the invoice. The bank withholds the ISD, Ecuador's tax on money leaving the country, at 5% unless a reduced rate or exemption applies.

What is the ISD rate on imports in Ecuador in 2026?

The SRI publishes a general ISD rate of 5% for 2026. Imports of fuels and of listed pharmaceutical tariff lines are taxed at 0%, and imports of listed productive-sector tariff lines at 2.5%.

Does paying a Chinese supplier from a US account avoid ISD?

No. The SRI presumes that any payment made from abroad by an individual or company resident in Ecuador is made with funds that cause ISD, even when the payment uses the company's own funds held abroad.

Can ISD on imports from China be recovered?

Does Ecuador need to convert currency to pay Chinese suppliers?

No. The US dollar is Ecuador's only legal tender, so an Ecuadorian company pays suppliers that invoice in dollars without any conversion. A supplier that asks for yuan needs a bank that sends yuan.

When did the Ecuador-China trade agreement take effect?

The agreement entered into force on 1 May 2024. Primicias reported that more than 4,600 product types enter Ecuador duty-free from that date, with other tariff lines reduced over 5 to 10 years or 15 to 20 years.

What does my bank need to send a payment to China?

Banks ask for the beneficiary's name, address and account number, the receiving bank's SWIFT code and the purpose of the transfer. Banco Pichincha asks for the DAU customs declaration number on advance payments, or the advance payment code where there is none yet.

Can I pay a Chinese supplier through an agent or with cash to avoid ISD?

No. The ISD applies to money sent or carried abroad in cash, by cheque, by transfer or by payment of any kind, with or without a bank. An informal route also leaves no record for the ISD income tax credit.

Can I pay a Chinese supplier with USDT from Ecuador?

On 12 August 2024 the Banco Central del Ecuador stated that crypto assets are neither legal tender nor an authorized means of payment, and that it would refer their use as payment to the prosecutor. Take legal advice before using a stablecoin to pay for goods.

Why does my Chinese supplier want payment to a Hong Kong account?

Many Chinese factories sell through a Hong Kong trading company that holds a Hong Kong bank account. Make sure the Hong Kong company is the seller on the invoice, so the payment, the ISD record and the customs declaration match.

References

HelmHelm is a business account for companies that trade internationally: USD, EUR and GBP accounts, international payments, collections and currency exchange, with a named account manager. Questions: [email protected].

This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.

How to pay Chinese suppliers from Ecuador