G/VAL/N/2/CHL/1  
25 February 2014  
(14-1153)  Page: 1/5  
Committee on Customs Valuation  Original: Spanish  
 
  INFORMATION ON IMPLEMENTATION AND ADMINISTRATION 
OF THE AGREEMENT ON CUSTOMS VALUATION 
CHECKLIST OF ISSUES 
CHILE 
The following communication, dated 7 February 2014,  is being circulated at the request of the 
delegation of Chile. 
 
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1. Questions concerning Article 1:  
(a) Sales between related persons: 
(i) Are sales between related person s subject to special provisions? 
Sales between related persons are examined in acco rdance with Article 1.1(d) and 1.2(a) and (b) 
of the WTO Agreement on Customs Valuation. In fact, these provisions are covered by Articles 12(d), 13 and 14 of Ministry of Fi nance Decree No. 1134 – approved by Resolution 
No. 1.300 (O.J.20.06.2002) establishing the Comp endium of Customs Regulations - on customs 
valuation regulations, with the instructions adop ted under Chapter II of Resolution No. 1300/2006. 
Special provisions on this subject are also included in the first subchapter of Chapter II of the 
Compendium of Customs Regulations under paragraph 4.1.2: "Requirements" for the acceptance 
of the transaction value, subparagraph (d); 4.1.3: "Relationship between the buyer and 
the seller"; and 4.1.4:"Acceptability and comparison prices between related persons". 
(ii) Is the fact of intercompany prices prima facie  considered as grounds for 
regarding the respective prices as being influenced? 
If intercompany prices are considered as grounds for regarding the prices as being influenced, 
the customs authorities will examine the "circumsta nces surrounding the sale", and will accept the 
value declared as the transaction value provided  the relationship did not influence the price. 
The declared transaction value will also be acce pted whenever the importer demonstrates that 
such value closely approximates some of the test values provided (paragraph 4.1.4.2 of the first subchapter of Chapter II, Compen dium of Customs Regulations). 
(iii) What is the provision for giving the communication of the aforementioned 
grounds in writing if the importer  so requests? (Art icle 1.2(a)). 
The provision in our domestic legislation for communicating in writing to the importer based 
on Article 1.2(a) of the WTO Customs Valuation Agreement, can be found in paragraph 4.1.4.1, 
third subparagraph, of the first subchapter of Chapter II of the Compendium of Customs 
Regulations, which reads as follows: "If following the general examination of the circumstances 
surrounding the sale the customs administration has grounds for considering that the relationship 
influenced the price, it shall communicate its grounds to the importer and provide the importer with the opportunity to respond." G/VAL/N/2/CHL/1 
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  (iv) How has Article 1.2(b) been implemented? 
It has been implemented on the basis of reasonable doubt, as established in Article 69 of the 
Customs Ordinance which sets out the mechanism for verifying the truth and accuracy of the value declared by the importer at the valuation stage, covered by Article 84 of the said Ordinance. 
If the customs administration does not accept the "test values" and the declared value is modified 
accordingly, resulting in the collection of unpaid duties and taxes possibly leading to a complaint before the tax and customs courts under Articles 117 et seq. of the Customs Ordinance, 
those courts shall definitively settle the conflict by accepting or rejecting the "test values" 
submitted by the importer. 
(b) Price of lost or damaged goods: 
Are there any special provisions or practical arrangements concerning the 
valuation of lost or damaged goods? 
Yes. They can be found in paragraph 7.2 of the second subchapter of Chapter II of the 
Compendium of Customs Regulation s, which provides as follows: 
"The customs value of the goods referred to in this subchapter shall be determined 
taking account of their state or condition at the time customs duties are payable. 
Accordingly, consideration shall be given, where appropriate, to possible reductions 
for use or damage. Where this is the case, the amount involved shall be determined 
by a certificate issued by an insurance company or a report by a competent expert or technician. Both the certificate and the report shall be reviewed by the competent regional customs administrator or director." 
2. How has the provision of Article 4 to a llow the importer an option to reverse the 
order of application of Articl es 5 and 6 been implemented? 
Thus far, there have been no such requests from importers. 
3. How has Article 5.2 been implemented? 
Here once again, we have not had occasion to implement this article, since the importers have 
made no such request. 
4. How has Article 6.2 been implemented? 
To date, no one has required or compelled any person to produce any account or other record for 
the purpose of determining a computed value in accordance with the provisions of that article. Nor has information supplied by the producers of  the goods been submitted for verification 
in another country. 
5. Questions concerning Article 7: (a) What provisions have been made for ma king value determinations to Article 7? 
Paragraph 4.6 of the first subchapter of Chapte r II of the Compendium of Customs Regulations 
contains the provisions relating to the implementation of this article,  inter alia : requirements 
governing its implementation, criteria, reason able flexibility, and excluded procedures. 
(b) What is the provision for informing the importer of the customs value determined 
under Article 7? 
The provisions are contained in Article 69 of the Customs Ordinance on control of the truth 
and/or accuracy of the declared value, and in paragraph 5.5(e) of the first subchapter 
of Chapter II of the Compendium of Customs Regulations. G/VAL/N/2/CHL/1 
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  In this connection, the mentioned paragraph states that "[t]he same communication shall indicate 
the specific valuation method used to determine the new customs value." 
(c) Are the prohibitions found  in Article 7.2 delineated? 
Yes, they are delineated in paragraph 4.6.4 on excluded procedures in the first subchapter 
of Chapter II of the Compendium of Customs Re gulations which, in subparagraphs (a) and (g), 
sets out the procedures that are excluded in determining the custom's value. 
6. How have the options found in Article 8. 2 been handled? In the case of f.o.b. 
application, are ex-factory prices accepted? 
These options are covered by the following legal provisions: - Article 6 of Decree with Force of Law (DFL) No. 31 (O.J.22.04.2005); 
- Article 6 of the Regulations implementing  the WTO Agreement on Customs Valuation; 
- Paragraph 2.7 of the first subchapter of  Chapter II of the Compendium of Customs 
Regulations on the customs value of goods. 
In accordance with these provisions, the basis for taxation in Chile is CIF. 
7. Where is the rate of exchange pub lished, as required by Article 9.1? 
The exchange rate is published on the webs ite of the National Customs Service under 
"Indicadores", on the basis of information provided on a monthly basis by the Board of 
the Central Bank of Chile. 
8. What steps have been taken to ensure co nfidentiality, as required by Article 10? 
Confidentiality is guaranteed by the following provisions: - Article 6 of the Customs Ordinance; 
- Article 2 of Ministry of Finance Decree No. 1.134 (O.J.20.06.2002); 
- Paragraph 2.1 of the first subchapter of Chapter II of the Compendium 
of Customs Regulations. 
9. Questions concerning Article 11: 
(a) What rights of appeal are open to the importer or any other person? 
The rights of appeal open to the importer or an y other person are those set forth in Articles 117 
and 121 of the Customs Ordinance. 
- Article 117 refers to customs value complaints filed with the tax and customs courts, 
which exercise their jurisdiction indepe ndently of the Customs Service and the 
Internal Tax Service; 
- Article 121 concerns appeals for "administrative review", which are filed with the 
National Customs Service. 
(b) How is he to be informed of his right to further appeal? 
The importer only has two channels of appeal: those mentioned above. G/VAL/N/2/CHL/1 
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  10. Provide information on the publicat ion, as required by Article 12, of: 
(a) (i) the relevant national laws; 
(ii) the regulations concerning th e application of the Agreement; 
(iii) the judicial decision and administrati ve rulings of general application relating 
to the Agreement; 
(iv) general or specific laws being refe rred to in the rules of implementation 
or application. 
All of the information covered by Article 12 of th e Agreement is published in the Official Journal 
of the Republic of Chile, and the relevant parts posted on the official website of 
the National Customs Service ( http://www.aduana.cl ). 
(b) Is the publication of further rules anti cipated? Which topics will they cover? 
Yes, for example the advance pricing agreement (APA ) procedure. Joint approval with the Internal 
Tax Service of the record of acceptance of th e APAs pertaining to the importation of goods 
(Article 41 E, No. 7, Law No. 20.630 (O.J.27.09.2012)). 
11. Questions concerning Article 13: 
(a) How is the obligation of Article 13 (last sentence) being dealt with in the 
respective legislation? 
In our legislation, the subject of the "guara ntee" is covered by the following provisions: 
- DFL No. 31 (O.J.22.04.2005), last indent of Article 5; 
- Article 92 of the Customs Ordinance; - Ministry of Finance Decree No. 1.134. (O.J.20.06.2002), Article 4; 
- Paragraph 2.4 of the first subchapter of  Chapter II of the Compendium of Customs 
Regulations, under the title "Guarantees". 
(b) Have additional explanations been laid down? 
No. 
12. Questions concerning Article 16 (a) Does the respective national legislat ion contain a provision requiring customs 
authorities to give an explanation in writing as to how the customs value 
was determined? 
Yes. Article 69 of the Customs Ordinance stipulates that "[a] reasoned decision shall be taken 
and communicated in writing within a maximum period of 12 working days." 
(b) Are there any further regulations co ncerning an above-mentioned request? 
Yes. Paragraph 5.5 (e) of the first subchapter of the Chapter II of the Compendium of Customs 
Regulations states that: "Upon notification of the amount to be recovered, the importer shall also 
be notified that the grounds for doubt have not been removed and accordingly, 
the Customs Administration has disregarded the declared value. The same communication shall indicate the specific valuation method used to determine the new customs value." 
13. How have the Interpretative Notes of the Agreement been included? 
The Interpretative Notes have been posted on th e official website of the Customs Service under 
"WTO Customs Valuation Agreement". G/VAL/N/2/CHL/1 
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  As regards implementation, they are included alon gside the substantive rules in the instructions 
for the implementation of the WTO Agreement on Customs Valuation in Chapter II of the Compendium of Customs Regulations. 
14. How have the provisions of the Decisi on on the Treatment of Interest Charges 
in the Customs Value of Import ed Goods been implemented? 
They have been implemented in accordance with Decision 3.1 of the WTO Committee on Customs 
Valuation, regulated by Article 7(f) of Ministry of Finance Decree No. 1.134 (O.J.20.06.2002) 
and incorporated in paragraph 2.8(f) of the su bchapter of the Chapter II of the Compendium 
of Customs Regulations, under the title "Expendi tures, costs, duties and taxes that are not 
included in the customs value". 
15. For those countries applying paragrap h 2 of the Decision on the Valuation 
of Carrier Media Bearing Software for Da ta Processing Equipment, how have the 
provisions of this paragraph been implemented? 
They have been implemented on the basis of pa ragraph 2 of Decision 4.1 of the WTO Committee 
on Customs Valuation, which itself has been incorporated in paragraph 13 of the second 
subchapter of Chapter II of the Compendium of Cu stoms Regulations and in a series of technical 
documents issued by the Technical Sub-Directorate and/or the Sub-Department for Valuation 
of the National Customs Directorate, for the purpose of regulating the valuation procedure so that 
the customs value is determined taking into account only the "cost of the carrier medium".  
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