FODINFA stands for Fondo de Desarrollo para la Infancia, a child development fund, and it is charged on every commercial import that enters Ecuador. The rate is 0.5% of the CIF value. It looks tiny, but on large operations it adds up to several hundred dollars, and no importer is exempt. Here is how it works.
Where FODINFA comes from
The fund was created in the 1990s to finance the Ecuadorian state's child development programs, mainly early childhood care, nutrition and preschool education. It is administered by the National Institute for Children and Families (INFA). Collection happens at customs at the moment of clearance.
How it is calculated
On an import with a CIF value of USD 10,000, FODINFA comes to USD 50. On a USD 80,000 container, it comes to USD 400. It does not depend on the product category or the origin.
Where it sits in the tax cascade
FODINFA is part of the taxable base for IVA, Ecuador's value added tax. First you calculate CIF, then add ad valorem duty, then add FODINFA, and the 15% VAT is applied to that total. So FODINFA actually costs you the 0.5% itself plus another 0.075% in cascading VAT.
| Item | Amount (CIF USD 10,000) |
|---|---|
| CIF | 10,000 |
| Ad valorem 10% | 1,000 |
| FODINFA 0.5% | 50 |
| VAT base | 11,050 |
| VAT 15% | 1,657 |
Who pays it
Every commercial import pays FODINFA. There are no exemptions by category, origin, customs regime or company size. Imports under the 4x4 regime (courier shipments up to USD 400 and 4 kg) do not pay FODINFA because they are taxed under a simplified rule. Imports from free trade zones inside Ecuador are also exempt.
The only things you need to remember
- Fixed rate: 0.5% of CIF.
- No exemptions for regular trade.
- It is part of the VAT taxable base.
- It appears on the DAI (the import customs declaration) and is paid together with the other taxes at clearance.
- It is not refunded, offset or reimbursed.
ATLAS applies FODINFA automatically in every calculation, so it will never slip through, even if you wanted it to.
