Exporting to Chile
Chile has one of the most open markets in the world, exporting over 3,800 products to 165 countries and importing goods from a similar number of nations. Chile's friendly business atmosphere, transparency and openness to world markets, will allow you to do business as you do in your own country, with the ease and convenience that you expect, coupled with competitive advantages that will certainly surprise you. Chile welcomes foreign investment, and does not discriminate between locals and foreign investors.
Thanks to its open trade policy and the vigorous economic growth experienced during the last two decades, businesses and consumers are now in a position, more than ever before, to buy a broader range of imported goods. In 2004, Chilean imports amounted to US$ 23 billion.
A vast network of free trade agreements with other countries, provides a privileged position as a leading world trader and a strategic business base in the region.
Chile has a single import tariff rate of 6 percent ad valorem for goods. However, as a consequence of tariff reductions negotiated in free trade agreements, the average real tariff rate in 2004 was 2.1 percent. For imports from the U.S., the average custom duty was 1.2 percent.
As exceptions to the 6 percent import duty, a few agricultural commodities (wheat, edible oils, sugar, and wheat flour), are subject to a price band that results in additional charges that can effectively raise taxes on the import. For wheat, wheat flour and edible oils the base import tariff is 31,5 percent, while for sugar the base import tariff is 98 percent. The import duties on these specific items will phase out and disappear in 12 years starting in 2004, on a non lineal scheme.
Chilean customs duties are based on the regular value of the goods, plus freight and insurance. Imports are subject to the same 19 percent value added tax (VAT) assessed on domestic goods, which will decrease to 18 percent in 2006 (Goods exported to Chile pay VAT at the Customs House). This is not an import tax as this is levied on all transactions.
The formula for calculating the VAT is: CIF + import duty x 19 percent. However, the U.S. exporter shall not pay import duties when selling to Chile. The importer or local agent pays all duties and value added taxes.
Importing involves a series of private sector services, including banks, custom agents, insurance companies and transportation firms. Banks handle all the financial transactions and Central Bank procedures, and customs agents deal with all custom house formalities.
In general terms, there are few barriers that affect imports and investments in Chile. Foreign companies based in Chile are protected by the same safeguards and operate under the same conditions as domestic firms. As one exception, a 16.5 percent tariff is assessed on used goods, while computer products are allowed to enter duty-free. Used automotive vehicles may not be imported.
Imported luxury goods - such as yachts, certain types of jewelry, furs, automobiles and other items - are also subject to luxury taxes. As a consequence of the FTA, luxury tax on automobiles will phase out and disappear in January 2008. Other duties on capital goods purchased to be used for export may be deferred for a period of seven years or even waived under some circumstances.
New business opportunities develop constantly in all lines of business and industry. We invite you to explore these opportunities and to establish trade partnerships with Chile. To learn about taxation procedures, such as obtaining a Tax Identification Number (RUT), appointing a legal representative and starting a business, please see the following web page: www.sii.cl.
- For a description of different types of taxes, please visit: www.sii.cl (Web site in Spanish).
- See also the Web page of the American Chilean chamber of commerce (AMCHAM) (In Spanish only).
- You can also find more detailed information on ways to operate in Chile, legal aspects and other matters of interest for business purposes at the following link: www.deloitte.com.
- Cámara de Comercio de Santiago (CCS), a private association that gathers more than 140 companies, provides assistance to foreign business people who are looking for commercial partners in Chile. You can access directly to this information at www.ccs.cl.
- You can also find information about doing business in Chile in www.buyusa.gov.