Chile WT/TPR/S/220 
 Page 25 
 
 
  III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) OVERVIEW1 
1. Since the previous Review of its trade policy in 2003, Chile has adopted several measures to 
modernize its customs regime a nd facilitate trade, including advance publication of customs 
regulations, introduction of an onlin e public consultation process, computerization of procedures for 
the entry and exit of goods, and the creation of cust oms tribunals.  In additio n, in late 2003 a law was 
published giving effect to the application of th e WTO Customs Valuation Agreement.  Following 
unilateral tariff reduction, since 2003 Chile has applie d a virtually uniform MFN tariff of 6 per cent.  
All tariff lines have been bound, the majority at an ad valorem  rate of 25 per cent.  Chile still has a 
price band system for certain agricultural products.  The only tariff quota in effect applies to imports 
of sugar. 
2. In addition to tariffs, there are other taxes on the import of goods, some of them on an 
ad valorem  basis.  Over the period under review, the customs clearance tax and the airport tax were 
abolished.  Chile has no quantitative restrictions or  import licences, even though it bans the import of 
used motor vehicles, used motorcycles and used ty res.  Since 2003, continge ncy measures have been 
imposed on a few occasions, mostly on certain agricultu ral products.  In general, technical regulations 
and sanitary measures are drawn up and implemente d transparently and both types of measure are 
regularly notified to the WTO. 
3. Chile has several export promotion programmes,  which mainly consist of administrative 
facilities for payment and reimbursement of customs duties.  During the period under review, some of 
these programmes were modified in order to br ing them into line with the WTO Agreement on 
Subsidies and Countervailing Measures (SCM Agreem ent).  Chile also has several export financing 
and guarantee schemes, one of which requires complia nce with national content requirements.  There 
are a number of incentive programmes to prom ote regional development, micro, small- and 
medium-sized enterprises (MSMEs) and innovatio n, consisting of tax concessions, financing for 
investment and technological developmen t, and support for business management. 
4. Chile's government procurement regime has been the subject of legislative reform since 2003 
to make it more transparent and efficient, inter alia , through use of electronic bidding procedures;  
foreign suppliers are given national treatment.  Th e competition regime has also been revised, and in 
2004 a tribunal to protect free competition was create d;  there have been many investigations into 
mergers and buy-outs in the transport, tel ecommunications, electricity and health sectors, inter alia .  
Chile has also introduced legislative reforms to st rengthen its intellectual property regime;  in some 
areas of copyright and industrial property, Chile's legislation goes further than the obligations laid 
down in the Agreement on Trade-Related Asp ects of Intellectual Property Rights (TRIPS). 
                                                      
1 In Chapters III and IV, the figures in Chilean pesos have been converted into United States dollars at 
an exchange rate of Ch$587.32/US$1, which corresponds to the arithmetic average of the exchange rate for the 
United States dollar over the first six months of 2009.  Unidades de Fomento  - UF (Development Units) have 
been converted into United States dollars at a rate of US$35.9/1 UF, which corresponds to the arithmetic 
average of the value of the UF over the first six months of 2009. WT/TPR/S/220 Trade Policy Review 
Page 26 
 
 
  (2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Procedures, documentation and registration 
5. Since the previous Review, Chile has introd uced several measures to streamline customs 
procedures, facilitate trade and make monitoring  easier, and is still making further improvements. 
6. Chile's customs regime is based on the Customs Ordinance (Decree with Force of Law No. 30 
of the Ministry of Finance, published on 16 June 2005).2  Other instruments which form part of the 
regime are the Organic Customs Law (Decree No. 329 of 20 June 1979), the Customs Tariff (Decree 
No. 1.019 of 31 December 2001 and amendments th ereto), the Tax Code (Decree Law No. 830 of 
31 December 1974), the Compendium of Customs Regulations (Resolution No. 1300 of 2006), Law 
No. 18.525 on the Import of Goods into Chile a nd amendments thereto, Law No. 19.912 of 2003, 
which brings Chile's legislation into line with  the WTO Agreements, as well as several regulations 
and resolutions3 and the customs provisions in the trade agreements signed by Chile.  Chile is a 
member of the World Customs Organization (WCO ) and has customs cooperation agreements with 
eight countries.4 
7. The Servicio Nacional de Aduanas  - SNA (National Customs Service) (the Customs), is a 
government body with its own administration and is responsible for monitoring and supervising the 
passage of goods at Chile's ports, borders and air ports, collecting foreign trade-related duties and 
taxes (including VAT and specific taxes), compiling statistics on Chile's trade, and carrying out any 
other tasks entrusted to it by the law.  The strategi c cornerstones of the Custom s work are supervision, 
facilitation of foreign trade and the incorporati on of information technology into both processes.5 
8. A declaración de ingreso  - DIN (declaration of entry) has to be submitted before bringing 
goods into Chile and it must be endorsed by the cust oms authorities.  The declaration must contain the 
following information:  the identity of the exporter,  the carrier, the importer or consignee and, where 
applicable, the customs agent;  the importer's tax identification number;  a description of the goods 
(Harmonized System code, weight, quantity , unit price);  and the customs value. 
9. The following documents must be attached to th e DIN:  the bill of lading, waybill or airway 
bill;  the original of the invoice;  a sworn statem ent from the importer regarding the price of the goods 
for the purposes of customs valuation and, where a pplicable, the mandate given to the customs agent 
(consisting of endorsement of the original bill of lading).  In addition, any permits, certificates or 
authorizations required for the goods  must be submitted, together with a certificate of origin if the 
imports are covered by a preferential agreement. 
10. The involvement of a customs agent (customs di spatcher) is mandatory for all imports whose 
f.o.b. value exceeds US$1,0006, except for those going to free zon es.  The criteria for the profession 
of customs agent include Chilean nationality and accr editation by the National Director of Customs.  
                                                      
2 Decree with Force of Law No. 30 of  2005 contains the revised, coordinated and consolidated text of 
Decree with Force of Law (DFL) No. 213 of 1953 on the Customs Ordinance. 
3 Chile's legislation, regulations and case law on customs matters are available at:  
http://www.aduana.cl/prontus_aduana/site/edic/base/port/inf_leg_y_normativa.html 
4 Online information from the National Customs Service.  Viewed at:  http://www.aduana.cl/ 
prontus_aduana/ 
5 Online information from the National Customs Service.  Viewed at:  http://www.aduana.cl 
6 Since the previous Review of Chile (2003), this value has been increased from US$500 to US$1,000.  
For exports, the services of cu stoms agents are required for transactions exceeding US$2,000. Chile WT/TPR/S/220 
 Page 27 
 
 
  By law, customs agents are government auxiliaries;  at  the same time, together with their clients, they 
are responsible for paying the import duties and tax es and incur civil and administrative liability for 
any action or omission affecting the interests of the State.7  In 2008, 236 customs agents were 
operating in Chile. 
11. There are no registration requirements for importe rs.  There is only a Register of Importers 
and Exporters of Ozone -Depleting Substances8, for which the SNA is responsible, in order to ensure 
compliance with the international commitments arisi ng from the Montreal Protocol on the control of 
such substances. 
12. The DINs are always sent electronically thr ough a customs agent and include the calculation 
of the taxes payable.  Since the end of 2007, it has also been possible to send cargo manifests (for 
maritime, land, air and courier transport) electronically to the Customs.9  After the DIN has been 
accepted, the import duties and taxes are paid either electronically or at authorized banks.  There is a project for a single window for foreign trade to a llow foreign trade operators to complete all the 
formalities electronically.  According to informati on from the Customs, by the end of 2007 bilateral 
coordination of systems and procedures had been completed for ten government departments, which 
taken as a whole accounted for over 96 per cent of the volume of operations.
10 
13. Once a DIN has been accepted for processing, in or der to verify the data declared the customs 
authorities may check the documents, conduct a phys ical inspection or assess the value of the goods, 
which involves simultaneous physical inspection and checking of documents.11  According to 
information from the authorities, between 5 and 10 per cent of import (and export) transactions are 
subject to checking of documents and physical inspection. 
14. The decision regarding which shipments to insp ect is based on risk profiles, filtering and 
selectivity criteria;  random checks are also carried  out.  In 2007, some 84 per cent of the DINs 
verified were chosen using a computerized system and the rest were chosen manually.  The selection 
criteria are determined by the Customs Inspection Department and concern sensitive sectors and tax 
related aspects, especially undervaluation, but criteria relating to the companies' fiscal record are not 
utilized.  The customs authorities may also carry out audits a posteriori and these concern some 15 to 
20 per cent of import transactions, selected on the basis of risk profiles. 
15. If there are no comments to be made after in spection, the customs authorities endorse the 
payment of the duties and other import levies.  As a general rule, duty should be paid up to 15 days 
after acceptance of the DIN and before the goods are withdrawn from the Customs, unless they are 
subject to a different form of payment.  The average time taken for clearance is two days. 
16. Since the previous Review, Chile has adopted sev eral measures to facilitate trade and make it 
more secure.  From 2007 onwards, there has been "a dvance publication", which consists of publishing 
customs regulations on the Customs website before th ey come into force so that they are known and 
can be the subject of comments by all interested pa rties.  In the same year, the Customs introduced an 
online procedure calling on trade operators to pro pose measures to improve customs regulations and 
procedures, called the "regulatory agenda".  Besides enhancing transparency and promoting 
                                                      
7 Articles 196, 199 and 200 of the Customs Ordinance (DFL No. 30). 
8 Exempt Resolution No. 5630 of 17 October 2007. 
9 For bills of lading (B/L), only the heading is sent electronically. 
10 Online information from the National Customs Service.  Viewed at:  http://www.aduana.cl/ 
prontus_aduana/site/ artic/20071210/pags/20071210131656.html 
11 Article 84 of the Customs Ordinance (DFL No. 30). WT/TPR/S/220 Trade Policy Review 
Page 28 
 
 
  participation by the private sector, this mechan ism helps to ensure better compliance with the 
regulations.  Both the "advance publication" and the "regulatory agenda" have been considered as best 
international practices by the IMF. 
17. Chile is working on implementing the WCO's Regulatory Framework for Trade Security and 
Facilitation and since 2005 has applied the WC O's Convention on Temporary Admission (ATA 
Carnets).  Other trade facilitation measures include m odernization of the physical infrastructure, the 
acquisition of non-invasive technology (container s canners), inter-operability between Customs and 
ports, the introduction of a pilot project for export cl earance that allows information to be sent from 
the factory directly to the port and the Customs12, lessening the time during which the cargo remains 
in the port and improving coopera tion with border customs posts. 
18. In October 2008, the Customs set up the Post-C learance Audit Unit, pa rt of the Inspection 
Subdirectorate, in order to conduct full post-clearance inspection of companies and by group of activity.  In February 2009, a pilot project for the Authorized Economic Operator Scheme was implemented in order to facilitate legitimate trad e and focus inspection on those operators who posed 
the greatest risk. 
19. Under the Regional Trade Agreements (RTAs)  signed by Chile, since 2009, the Chilean 
Customs have been issuing binding advance resolutions  at the request of importers, or exporters or 
producers of goods to be imported, covering aspects su ch as customs valuation, tariff classification 
and the origin of the goods.  The advance resolutions  are issued for all imports irrespective of origin. 
20. Pursuant to the Customs Ordinance, interested parties may lodge complaints against decisions 
and actions by the Customs within 60 working days.  Complaints must be lodged with the competent 
Customs regional director or administrator, who tak es a decision in the first instance.  Appeals against 
their decisions may be lodged with the National Di rector of Customs within five working days, but 
there is no subsequent appeal against the latter's ruling and it applies in all the Customs posts in 
Chile.
13  Chilean case law on customs matters can be viewed on the Customs website.14  T h e  
authorities indicate that, during the period 2003-2006 (t he latest for which information is available), 
6,422 complaints against valuations were made in the first or sole instance and 4,559 in the second 
instance. 
21. In 2008, the National Congress approved the crea tion of Tax and Customs Tribunals as bodies 
independent of the inspection entities and responsible for deciding on disputes between taxpayers and 
the Customs regarding classification, valuation, origin, etc.  It is hoped that these tribunals will start to 
function in stages between 2009 and 2013. 
22. Chile has notified the WTO that it has no preshipment laws or regulations.15  The authorities 
have confirmed that this type of service is not used. 
                                                      
12 Pilot project implemented in the port terminals at San Antonio and San Vicente. 
13 The procedure for lodging complaints against deci sions by the customs authorities is laid down in 
Title VI of the Customs Ordinance (DFL No. 30). 
14 Online information from the SNA.   Viewed at:  http://www.aduana.cl/prontus_aduana/site/edic/ 
base/port/inf_fallos.html 
15 WTO document G/PSI/N/1 of 31 March 1995. Chile WT/TPR/S/220 
 Page 29 
 
 
  (ii) Customs valuation 
23. In November 2003, Law No. 19.912 was published,  giving effect to application of the 
WTO Customs Valuation Agreement, whose provisi ons had been applied by Chile since 2002 by 
means of Decree No. 1.134 of 20 June 2002.  Law No. 19.912 brought Chile's legislation into line 
with the provisions of the Agreemen t, as well as making other amendments.16  These amendments 
have been notified to the WTO.17  At its meeting in March 2004, the WTO Customs Valuation 
Committee concluded its examination of Chile's notification. 
24. Chile uses the transaction valu e as the initial basis for determining the customs value and 
defines this as the price actually paid or payabl e for the goods when these are sold for entry into 
Chile.  The transaction value is applied on a c.i.f.  basis both for imports covered by MFN treatment 
and for imports under preferential regimes.  In 2008, the value of 99 per cent of imports was 
determined according to the transaction value. 
25. If the customs value cannot be determined on the basis of the transaction value, it is 
determined using each of the methods laid dow n in the WTO Customs Valuation Agreement in 
sequence (Articles 2, 3, 5, 6 and 7) until the first me thod that allows it to be determined is reached.  If 
it is necessary to postpone the defin itive determination of the customs value at the time the value of 
the goods to be imported is determined, in t hose cases indicated by the Customs the importer may 
withdraw the goods from the Customs subject to lodging a sufficient guarantee.18 
26. Verification of the declared value is based on the principle of reasonable doubt.19  If the 
Customs has grounds for doubting the accuracy or ex actitude of the declared value, it may require the 
importer to submit other documents or proof attesti ng to the value.  If doubt persists regarding the 
declared value even after receiving the additional elem ents, or in their absence,  the value of the goods 
is determined using the methods in the WTO Cust oms Valuation Agreement.  This procedure is 
without prejudice to the power of the Customs to carry out subsequent revi ews, investigations or 
audits. 
27. Chile's legislation gives the National Director of Customs the authority to issue regulations 
for valuing used goods, but also states that th ese regulations must be consistent with the 
WTO Customs Valuation Agreement. 
(iii) Rules of origin 
28. Chile applies preferential rules of origin under its various RTAs;  no non-preferential rules of 
origin are envisaged in its legislation.20  All the RTAs signed by Chile contain special provisions on 
rules of origin and certification procedures.  Chile has notified the WT O Committee on Rules of 
Origin of the preferential rules of origin in some of its RTAs.21  Information on rules of origin in other 
agreements signed by Chile has been notified to  the Committee on Regional Trade Agreements (see 
Table AII.3). 
                                                      
16 The laws amended include Law No. 18.525 on the import of goods into Chile and Law No. 18.483, 
known as the "Automotive Statute". 
17 WTO document G/VAL/N/1/CHL/1 of 24 November 2003. 
18 Article 5 of Law No. 18.525, amended by Decree No. 19.912. 
19 Article 69 of the Customs Ordinance (DFL No. 30). 
20 WTO document G/RO/N/6 of 19 December 1995. 
21 WTO document G/RO/N/38 of 7 October 2002. WT/TPR/S/220 Trade Policy Review 
Page 30 
 
 
  29. Three kinds of rules of origin can be distinguished in the RTAs signed by Chile and they 
differ in terms of complexity, specificity and level of  detail:  (i) rules of origin in agreements which 
are similar to those in the North American Free Tr ade Agreement;  (ii) rules in agreements negotiated 
with European countries;  and (iii) rules of orig in in Economic Complement arity Agreements (ECAs) 
concluded within the LAIA framework. 
30. Generally speaking, Chile's RTAs with countri es on the American continent, Asian countries, 
the P-422 and Australia define goods as originating if they are wholly obtained or produced in the 
territory of the parties;  if they are wholly produced in the territory of the parties exclusively from originating inputs;  if they are produced from non-or iginating inputs that undergo a change of tariff 
classification in the territory of the parties and comply with other requirements, or if they satisfy a 
regional content value requirement, calcula ted on the basis of detailed formulas. 
31. In the agreements signed with the Europ ean Community and the European Free Trade 
Association, rules of origin are based on the con cept of "sufficient working or processing".  Although 
they differ from product to product, the criteria for defining whether a good has been sufficiently processed or worked may include a change in tariff classification, a regional content value 
requirement or production process rules. 
32. The rules of origin in ECAs are based on Resolution No. 252 of 1999 of the LAIA Committee 
of Representatives.  These are somewhat simpler rules of origin.  In addition to products wholly obtained in the territory of the parties, goods whic h undergo a substantial transformation (i.e. a change 
in tariff classification) are also considered as origin ating.  If there is no subs tantial transformation, a 
regional content value requirement applies calculated us ing a simple formula (c.i.f./f.o.b.).  The rules 
of origin in the various ECAs signed by Chile we re described in the Secretariat's Report for the 
1997 Review of Chile.
23 
33. Imports benefiting from preferential treatment under a trade agreement must be accompanied 
by a certificate of origin.  The procedures for certif ying and verifying origin differ according to the 
agreement.  In some RTAs self-certification is allo wed and there is a certificate of origin for this 
purpose, which in some cases may be issued and s ubmitted electronically;  verification of origin is 
initiated directly by the Customs of import a nd the procedures regarding the responsibilities and 
attributions of each entity participating tend to be  very detailed.  In agreements with European 
countries, origin is certified by the competen t government authority (in Chile's case, the Dirección 
General de Relaciones Económicas Internacionales  - DIRECON (Directorate-General of 
International Economic Relations)), wh ich may not delegate this role;  a special certificat e of origin is 
required (with a particular wate rmark and colour) and verificati on procedures are conducted through 
the competent government authority.  In ECAs, cer tification is the responsibility of the competent 
authority, which may delegate this task to othe r government or private bodies;  the format for the 
certificate of origin is straightforward and the verification procedures are carried out through the 
certifying authority.24 
34. As part of the action taken to move towards convergence of the trade agreements to which 
Chile is party, the authorities are exploring th e possibility of setting up mechanisms for the 
cumulation of origin with partners in various agreements;  for example, in the "Pacific Rim" 
framework (see Chapter II(4)(iii)), where Ch ile chairs a working group on convergence. 
                                                      
22 The Trans-Pacific Strategic Economic Partne rship Agreement (P-4) was signed by Chile, 
New Zealand, Singapore and Brunei Darussalam on 18 July 2005. 
23 WTO (1997). 
24 R. Contreras (undated). Chile WT/TPR/S/220 
 Page 31 
 
 
  (iv) Tariffs 
35. Chile's average MFN tariff is 6 per cent.  The tariff rate is virtually standard, although there 
are a few exceptions for some agricultural products, which are imposed at 12.5 per cent or are subject 
to a price band system, as well as some products that  enter duty free (aircraft, boats and some capital 
goods).  During the Uruguay Round, Chile bound all its tariffs at 25 per cent, except for some 
agricultural products, which were bound at 31.5 per cen t at the end of the implementation period.  
Subsequently, in accordance with Article XXVIII of the GATT, Chile renegotiated the bound rate for 
sugar, raising it to 98 per cent and introducing a tariff quota. 
(a) Structure and levels 
36. Since January 2003, Chile has had a virtually uniform MFN tariff resulting from 
implementation of Law No. 19.589 (1998), which provided for a unilateral reduction in the general 
tariff by one percentage point each year, from 11 per cent down to 6 per cent in 2003 (January).  Chile 
grants at least MFN treatment to all its trading partners. 
37. Chile's customs tariff is based on the 2007 version of the Harmonized Commodity 
Description and Coding System (HS 2007).  In January 2009, the tariff comprised 7,715 eight-digit 
lines (compared with 7,903 in 2003) (Table III.1).  Ad valorem duty applied to all imports, with the 
exception of eight lines corresponding to agricultu ral products (wheat, whea t flour and sugar) to 
which compound duties applied under the price ba nd system (see Chapter IV(2)(iv)).  In 
January 2009, the ad valorem  equivalent of the tariff applied under the price band system was 0 per 
cent for wheat and wheat flour and 6 per cent for sugar.25  There were no seasonal tariffs. 
38. In January 2009, there were three ad valorem  rates:  0, 6 and 12.5 per cent.  The most 
common rate was 6 per cent, which applied to 99.3  per cent of tariff lines, followed by 0 per cent 
(0.5 per cent of tariff lines) and 12.5 per cent (0.2 per cent of tariff lines). 
Table III.1 
MFN tariff structure, January 2009  
(Percentage) 
2009   
1. Total number of tariff lines 7,715 
2. Non- ad valorem  tariffs (% of all tariff lines) 0.1 
3. Non- ad valorem  tariffs without AVEs (% of all tariff lines) 0.0 
4. Tariff quotas (% of all tariff lines) 0.1 
5. Duty-free tariff lines (% of all tariff lines) 0.5 
6. Average of lines exceeding zero (%) 6.0 
7. Domestic tariff peaks (% of all tariff lines)a 0.0 
8. International tariff peaks (% of all tariff lines)b 0.0 
9. Bound tariff lines (% of all tariff lines) 100.0 
a Domestic tariff peaks are defined as rates exceeding three times the overall simple average applied rate. 
b International tariff peaks are de fined as rates above 15 per cent. 
Source : WTO Secretariat estimates based on data provided by the Chilean authorities. 
39. In January 2009, the average MFN tariff was 6 pe r cent (Table III.2).  Agricultural products 
(WTO definition) were subject to an average rate  of 6.1 per cent, while the tariff on non-agricultural 
                                                      
25 Information provided by the Chilean authorities. WT/TPR/S/220 Trade Policy Review 
Page 32 
 
 
  products was 6 per cent on average.  The highest ra te (12.5 per cent) applied to 12 tariff lines for 
certain agricultural products, mainly meat and edible  poultry offal.  In fact, following the conclusion 
of the RTA with the United States of Ameri ca, in 2004 Chile increased its MFN tariff on these 
12 lines from 6 to 25 per cent, which will gradually be brought back to 6 per cent26;  in January 2009, 
it was 12.5 per cent.  In the same month, Chile applied a zero per cent tariff on 35 tariff lines for 
non-agricultural products, including books and printed matter, electrical machinery and appliances, 
fire-fighting vehicles, tanks, helicopters, aircraft, and cargo and passenger vessels, inter alia . 
Table III.2 
Breakdown of the MFN tariff, January 2009 
MFN 
Description Number of 
lines Average 
(%)a Range 
(%)a Coefficient of 
variation (CV) Average 
bound tariff 
(%) 
Total 7,715 6.0 0 - 12.5 0.1 25.1 
HS 01-24 1,484 6.0 0 - 12.5 0.1 25.8 
HS 25-97 6,231 6.0 0 - 6 0.1 25.0 
By WTO category      
Agricultural products 1,045 6.1 0 - 12.5 0.1 26.1 
 - Animals and animal products 127 6.6 6 - 12.5 0.3 25.0 
 - Dairy products 51 6.0 6 - 6 0.0 29.8 
 - Coffee and tea, cocoa, sugar, etc. 172 6.0 0 - 6 0.1 27.6 
 - Cut flowers and plants 59 6.0 6 - 6 0.0 25.0 
 - Fruit, vegetables and garden produce 270 6.0 6 - 6 0.0 25.0 
 - Cereals 20 5.7 0 - 6 0.2 25.3 
 - Oilseeds, fats and oils and their products 103 6.0 6 - 6 0.0 29.4 
 - Alcoholic beverages and liquids 81 6.0 6 - 6 0.0 25.0 
 - Tobacco 14 6.0 6 - 6 0.0 25.0 
 - Other agricultural products n.e.s. 148 6.0 6 - 6 0.0 25.0 
Non-agricultural products (including petroleum) 6,670 6.0 0 - 6 0.1 25.0 
 - Non-agricultural products (excluding 
petroleum) 6,641 6.0 0 - 6 0.1 25.0 
  - Fish and fish products 510 6.0 6 - 6 0.0 25.0 
  - Minerals, precious stones and metals 401 6.0 6 - 6 0.0 24.9 
  - Metals 659 6.0 6 - 6 0.0 25.0 
  - Chemicals and photographic products 1,342 6.0 6 - 6 0.0 25.0 
  - Leather, rubber, footwear, and travel 
 articles 252 6.0 6 - 6 0.0 25.0 
  - Wood, wood pulp, paper and furniture 425 5.9 0 - 6 0.1 25.0 
  - Textiles and clothi ng 1,114 6.0 6 - 6 0.0 25.0 
  - Transport equipment 320 5.5 0 - 6 0.3 24.8 
  - Non-electrical machinery 711 6.0 0 - 6 0.0 25.0 
  - Electrical machinery 412 6.0 0 - 6 0.0 25.0 
  - Non-agricultural products n.e.s. 495 6.0 0 - 6 0.0 25.0 
 - Petroleum 29 6.0 6 - 6 0.0 25.0 
By ISIC sectorb      
Agriculture and fishing 516 6.0 0 - 6 0.0 25.3 
Mining 119 6.0 6 - 6 0.0 25.0 
Manufacturing 7,079 6.0 0 - 12.5 0.1 25.1 
By HS chapter      
  01 Live animals and animal products 604 6.1 6 - 12.5 0.1 25.4 
                                                      
26 Law No. 19.914 of 19 November 2003. Chile WT/TPR/S/220 
 Page 33 
 
 
  MFN 
Description Number of 
lines Average 
(%)a Range 
(%)a Coefficient of 
variation (CV) Average 
bound tariff 
(%) 
  02 Plant products 405 6.0 0 - 6 0.1 25.4 
  03 Fats and oils 60 6.0 6 - 6 0.0 28.2 
  04 Food preparations, etc. 415 6.0 6 - 6 0.0 26.3 
  05 Mineral products 196 6.0 6 - 6 0.0 24.9 
  06 Products of the chemical and related 
industries 1,232 6.0 6 - 6 0.0 25.0 
  07 Plastics and rubber 304 6.0 6 - 6 0.0 25.0 
  08 Hides and skins 81 6.0 6 - 6 0.0 25.0 
  09 Wood and articles of wood 158 6.0 6 - 6 0.0 25.0 
  10 Wood pulp, paper, etc. 209 5.9 0 - 6 0.1 25.0 
  11 Textiles and textile ar ticles 1,093 6.0 6 - 6 0.0 25.0 
  12 Footwear, hats and other headgear 109 6.0 6 - 6 0.0 25.0 
  13 Articles of stone 187 6.0 6 - 6 0.0 25.0 
  14 Precious stones, etc. 60 6.0 6 - 6 0.0 25.0 
  15 Base metals and articles of  base metal 637 6.0 6 - 6 0.0 25.0 
  16 Machinery and mechanical appliances 1,142 6.0 0 - 6 0.0 25.0 
  17 Transport material 333 5.5 0 - 6 0.3 24.8 
  18 Precision instruments 258 6.0 6 - 6 0.0 25.0 
  19 Arms and ammunition 23 6.0 6 - 6 0.0 25.0 
  20 Miscellaneous manufactured articles 202 6.0 6 - 6 0.0 25.0 
  21 Works of art, etc. 7 6.0 6 - 6 0.0 25.0 
By stage of processing      
First stage of processing 1,111 6.0 0 - 6 0.0 25.1 
Semi-processed products 2,281 6.0 0 - 6 0.0 25.2 
Fully processed products 4,323 6.0 0 - 12.5 0.1 25.1 
a The calculations include the ad valorem equivalents of products subject to the price band system (an ad valorem  rate of 6 per 
cent plus a special rate or a ta riff reduction, whichever applies). 
b ISIC (Rev.2), excluding electricity (1 line). 
Source : WTO Secretariat estimates based on data provided by the Chilean authorities. 
 
40. There is no tariff escalation in Chile's tariff as the average tariff on fully processed and 
semi-processed products is the same as that on products at the firs t stage of processing, i.e. 6 per cent.  
There is little dispersion in the tariff structure.  In fact, tariff dispersion, measured by the coefficient 
of variation, fell from 0.2 per cent in 2003 to 0.1 per cent in 2009. 
41. Used goods are subject to a surcharge of 50 per ce nt on top of the general tariff or preferential 
tariff, whichever applies.  Ambulances, armoured vehicles, highway cleansing vehicles, motor homes 
and other special vehicles do not ha ve to pay this additional duty. 
(b) Tariff bindings 
42. Chile's tariff bindings are contained in Sche dule VII annexed to the General Agreement on 
Tariffs and Trade 1994 and also in the Schedule compiled prior to the entry into force of the Marrakesh Agreement.
27  During the Uruguay Round, Chile bound all its tariffs (Chapters 1 to 97 of 
                                                      
27 The Schedule prior to the entry into force of the Marrakesh Agreement is  contained in document 
L/7195/Add.5 attached to the Geneva Protocol (1993). WT/TPR/S/220 Trade Policy Review 
Page 34 
 
 
  the HS) at a rate of 25 per cent, with the exception of certain agricultural products and six tariff lines 
that had been bound at lower levels prior to the Round. 
43. The agricultural products listed in Section I of  Chile's Schedule VII were subject to a bound 
rate of 31.5 per cent at the end of the implementation period.  Th ese include wheat and wheat flour, 
various dairy products, oil seeds and oleaginous fruit, vegetable fats and oils, and cane or beet sugar.  
The rates bound at less than 25 per cent are:  one bound line at zero per cent (bone ash), another line bound at 3 per cent (ships over 3,500 tonnes or 120 metr es in length), another at 15 per cent (various 
worked carving materials) and three lines at  23 per cent (various types of turbine). 
44. After the end of the Uruguay Round, Chile rene gotiated the bound rate for sugar pursuant to 
Article XXVIII of the GATT 1994.  In November  2001, it notified that it had completed the 
negotiations, which had resulted in an increase in th e final bound rate for sugar from 31.5 per cent to 
98 per cent, and the introduction of an annual tariff quota of 60,000 tonnes at a rate of zero per cent.
28  
The amendments to Chile's Sche dule of Concessions were certif ied and came into force on 
30 January 2002.29  Pursuant to Article XXVIII.5 of th e GATT 1994, Chile reserved the right to 
amend its Schedule of Concessions on a number of o ccasions.  The most recent notification in this 
respect concerns the three-year period beginning on 1 January 2006.30  At the time of preparing this 
report, a new notification by Chile in this regard , covering the period 2009-2011, was being prepared. 
45. Chile did not follow the procedures to introdu ce the 1996 HS changes into its Schedule of 
Concessions.  The changes introduced into its Schedule in accordance with the 2002 HS were 
certified in document WT/Let/583 of 29 August 2007. 
(c) Tariff quotas 
46. Following the amendment of its Schedule of Concessions, Chile has had an MFN tariff quota 
for refined sugar since January 2002 (see Chapte r IV(2)(iv)).  Moreover, under its RTAs, Chile 
applies tariff quotas on imports of certain products such as vegetable oils, bovine meat, poultry meat, 
dairy produce and fish. 
(d) Price band system 
47. Chile has a price band system based on international reference prices for imports of wheat, 
wheat flour and sugar.  In accordance with this sy stem, amended in 2003, specific duties are added to 
the ad valorem  tariff when the reference price falls below th e lower threshold price in the price band;  
in exchange, a tariff reduction applies when the reference price exceeds the upper threshold of the 
band (see Chapter IV(2)(iv)). 
(e) Special tariff treatment 
48. Section 0 of Chile's customs tariff provides for sp ecial tariff treatment consisting of total or 
partial exemption from duty for certain users or purposes.  This applies, inter alia , to imports of 
certain goods by government bodies, foreign service offi cials, international organizations, educational 
and social welfare organizations, religious communities and air and maritime transport companies, as 
well as to donations, samples of goods of no commerc ial value and certain automobile parts.  Chile 
also gives tariff concessions in connectio n with the free zones (see (4)(iii)). 
                                                      
28 WTO document G/MA/TAR/RS/82 of 30 October 2001. 
29 WTO document WT/Let/415 of 4 March 2002. 
30 WTO document G/MA/173 of 5 December 2005. Chile WT/TPR/S/220 
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  49. In addition, under Law No. 20.269, which came into force on 27 June 2008, a zero per cent 
MFN tariff applies to imports of certain capital goods.31 
(f) Preferential tariffs 
50. The important role played by tariff preference s in Chile's foreign trade continued to grow 
during the period under review.  Since 2003, Chile has signed RTAs with the Republic of Korea, the 
United States of America, EFTA (Iceland, Liechte nstein, Norway and Switzerland), China, Panama, 
Peru, Colombia, Australia, Japan and Turkey, as we ll as an economic partnership agreement with 
New Zealand, Singapore and Brunei Darussalam (P-4 ) and a partial scope agreement with India.  
Chile also has RTAs with Cana da, Mexico and Central America32 and an economic association 
agreement with the EC.  Chile grants tariff prefer ences to several countries under ECAs signed within 
the LAIA framework.  In all, Chile has si gned 20 trade agreements with 56 countries (see 
Chapter II(4)(ii)). 
51. The WTO Secretariat has not been able to prep are a statistical breakdown of the preferential 
tariffs granted by Chile under the RTAs it has sign ed because there is no information on the rates 
actually applied in 2009 under these ag reements at the tariff line level.33 
52. A study of the effective tariff imposed on Chile's imports, published by the Central Bank of 
Chile, found that because an increasingly larg e proportion of these imports come from countries 
which have tariff preferences, the effective tari ff rate showed a downward trend over the period 
2000-2005, falling to less than 2 per cent in 2005.  The study also shows that capital goods were 
subject to the lowest effective tariff in 2005 (1.3 per cent), whereas higher rates applied to 
intermediate goods (1.7 per cent) and consumer goods (3.1 per cent).34 
(v) Other charges affecting imports 
53. Other levies are imposed exclusively on imports of goods in addition to tariffs, some of them 
on an ad valorem  basis.  Since the previous Review, Chile has abolished import levies such as the 
customs clearance tax and the airport tax.  Im ported goods, in the same way as domestic goods, must 
pay the value added tax (VAT) and other additiona l taxes depending on the nature of the goods. 
54. The Customs imposes a 1 per cent tax on the cu stoms value for its verification service for 
"valuation examination" in connection with  simultaneous payment import declarations.35 
55. There is a tax on goods entering under the tempor ary admission regime at a rate that is a 
percentage of the total customs duties and tax es on their import and varies depending on the time the 
goods are going to remain in Chile.  If they remain fr om one to 15 days, the rate applicable is 2.5 per 
cent;  it is 5 per cent for 16 to 30 days;  10 per cent for 31 to 60 days;  15 per cent for 61 to 90 days;  
                                                      
31 The zero per cent tariff is applied on an ad hoc basis to capital goods that meet the definitions laid 
down in Law No. 18.634. 
32 As of May 2009, it was in force only for Costa Rica, El Salvador and Honduras. 
33 The WTO Secretariat had access to the tariff reduc tion timetables for each of  the RTAs signed by 
Chile, but the majority of these are expressed in nomenclatures that pre ceded the HS, whereas the MFN tariff 
rates applied by Chile are based on HS2007.  Consequently , it was not possible to calculate the reductions made 
or the preferential rates applied. 
34 Becerra (2005). 
35 Article 85 of the Customs Ordinance. WT/TPR/S/220 Trade Policy Review 
Page 36 
 
 
  20 per cent for 91 to 120 days;  and 100 per cent for over 121 days.36  If the goods entering under the 
temporary admission regime are from an origin that  is covered by a preferential agreement, the 
taxable base includes all the customs duties and taxes laid down in the general import regime.37 
56. In principle, a storage tax is payable wh en goods are deposited in the customs in-bond 
warehouse.38  The authorities have indicated, however, th at in practice the Customs does not provide 
warehousing and warehouses are operated by natural or legal persons authorized by the National 
Director of Customs or under a concession given following a public bidding procedure.  Warehouse 
operators set their rates but may not allo w arbitrary or discriminatory treatment.39 
57. VAT applies to the domestic sale and import of goods and services, with some exceptions 
specified by law.40  In October 2003, the VAT rate was temporarily increased from 18 per cent to 
19 per cent and this increase was made perman ent in April 2006.  VAT on imported goods is 
calculated on the customs value plus the import duty.   The legislation defines the exceptions to VAT 
depending on the use or purpose of the goods impor ted, one of the most important being the 
concession for exports.  In addition, imports of cap ital goods may be exempted from VAT if they are 
to be used for investment, in accordance with th e Foreign Investment Statute (Decree Law No. 600, 
see also Chapter II(3)), or if local production is insufficient or not of high enough quality.41 
58. Depending on their nature, some domestic and impor ted goods are subject to additional taxes;  
these include luxury articles, beverages, tobacco, pyrotechnical articles and fuels (Table III.3). 
Table III.3 
Taxes levied on imports and domestic goods, January 2009 
Taxable base 
Tax Product Rate (%) 
Imports Domestic goods 
Value added 
tax (VAT) All goods 19 Customs value plus 
import duty Selling price at all 
transaction levels 
Luxury tax Articles made of gold, platinum 
and ivory;  jewellery, natural or 
synthetic precious stones;  fine 
furs;  rugs and fine tapestries;  motor homes;  caviar;  air or 
compressed gas guns 15 Customs value plus 
import duty Selling price at all 
transaction levels 
 Pyrotechnical articles (fireworks), 
except for industrial, mining or 
agricultural use 50 Customs value plus 
import duty Selling price at all 
transaction levels 
Tax on beverages Non-alcoholic beverages (mineral 
waters, artificial beverages and 
syrups) 13 Customs value plus 
import duty Selling price at all 
transaction levels, except 
for retail sale 
 Alcoholic beverages, wines, 
champagne, cider and beer 
Liqueurs, pisco, whiskies, spirits, 
eau de vie 15 
 
27   
                                                      
36 Article 107 of the Customs Ordinance. 
37 National Customs Service, Office Circular No. 0017 of 17 January 2008. 
38 Article 110 of the Customs Ordinance. 
39 Finance Decree No. 1.114, published on 26 May 1998. 
40 Decree Law No. 825 of 1974 on the tax on sales an d services, replaced by Decree Law No. 1.606, 
published on 3 December 1976 and updated on 5 J une 2007 (hereinafter, Law on the Tax on Sales and 
Services). 
41 Law on the Tax on Sales and Services, Article 12, B, 10. Chile WT/TPR/S/220 
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  Taxable base 
Tax Product Rate (%) 
Imports Domestic goods 
Tax on tobacco 
products Cigars 
Cigarettes Manufactured tobacco 51.0 
60.4 57.9 Final consumer price 
Final consumer price Final consumer price Final consumer price 
Final consumer price Final consumer price 
Tax on fuels Gasoline 4.5 UTM/m3 
(1 UTM = US$69.5)a Customs value plus 
import duty plus VAT Producer price, including 
VAT (first sale) 
 Diesel 1.5 UTM/m3 
(1 UTM = US$69.5)a Customs value plus 
import duty plus VAT Producer price, including 
VAT (first sale) 
a Unidad Tributaria Mensual  - UTM (monthly tax unit) is an economic unit us ed for taxation purposes and adjusted monthly 
according to the CPI.  At 30 June 200 9, it amounted to Ch$36.792, some US$69.5. 
Source : Online information from the Internal Taxation Service.  Viewed a t:  http://www.sii.cl. 
59. During the period under review, Chile abolishe d the tax on the import of luxury vehicles 
which, at the end of 2003, amounted to 85 per cent of the part of the customs value exceeding 
US$15,835 for imported vehicles.  The same tax app lied to domestic vehicles on a percentage of the 
value which exceeded that sum.  This tax wa s gradually lowered and then abolished as of 
1 January 2007 pursuant to Law No. 19.914 of 19 November 2003 and Chile's commitments under its 
RTA with the United States of America. 
60. Law No. 19.912, published on 4 November 2003, repealed Article 190 of Law No. 16.464 
establishing the customs clearance tax.  This was a 5 per cent tax on the customs value of goods fully 
or partially exempt from customs duty.  Preferen tial imports under trade agreements signed by Chile 
were exempt from this charge.  In addition, D ecree No. 30 of the Undersecretariat of Aviation, 
published on 5 April 2004, repealed the "airport tax" of 2 per cent on customs duty applicable to goods imported by air. 
(vi) Import prohibitions, restrictions and licensing 
61. Chile has no quantitative restrictions and no im port licensing regime, but bans the import of 
used vehicles, used motorcycles and used and retr eaded tyres.  Furthermore, the entry of certain 
products is subject to administrative formalities. 
(a) Import prohibitions 
62. The Constitutional Organic Law of the Centra l Bank establishes freedom of importation, 
provided that there is compliance with the legisla tion in force and the goods are not specifically 
prohibited.
42  Chile has some prohibitions on imports in order to protect the environment and human 
or animal health and to preserve plants, in accordan ce with its domestic legislation and international 
commitments.  These prohibitions apply indi scriminately to all its trading partners. 
63. The import of used vehicles43, used motorcycles and used and retreaded tyres (with the 
exception of wheel-mounted tyres) is prohibited.44  The origin of this prohibition on importing used 
vehicles is to be found in Law No. 18.483, known as the Automotive Statute of 1985, whose original 
objective was to assist Chile's automobile industr y and promote its exports.  According to the 
authorities, the reason for maintaining the prohibition is to ensure that there is a modern, safe and 
                                                      
42 Article 88 of the Constitutional Organic Law of the Central Bank of Chile (Law No. 18.840, 
published on 10 October 1989). 
43 Article 21 of Law No. 18 .483 of 28 December 1985. 
44 Exempt Resolution No. 1.108 of the Ministry of Health. WT/TPR/S/220 Trade Policy Review 
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  environmentally friendly fleet of motor vehicles.  This prohibition does not apply to ready-mix 
cement trucks, ambulances, fire-fighting vehicles,  urban and highway cleansing vehicles, armoured 
vehicles, motor homes and penitentiary vehicles, inter alia , or to vehicles belonging to Chilean 
citizens who have resided abroad for one year or more and then returned to Chile, and vehicles 
intended for free zones.  The reason for prohibiting used tyres is one of public health.  It is to ensure 
that the mosquito aedes albopictus , which transmits epidemic diseases such as dengue and yellow 
fever, is not introduced into Ch ile by means of used tyres. 
64. Other products that may not be imported incl ude asbestos, pornography, dangerous goods 
such as certain pesticides for agri cultural use, toys and articles for children which contain toluene, 
adhesives with a volatile solvent base and other goods  prohibited by decree of the Ministry of Health 
or Agriculture or other government bodies.  Pursua nt to the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora (CITES), it is prohibited to import animals or plants in 
danger of extinction.  Chile also prohibits the import of toxic and hazardous waste pursuant to the 
Basel Convention, as well as the import of ozone-d epleting substances and pr oducts containing CFCs 
in accordance with the Montreal Protocol  (Annexes A, B and Group II in Annex C). 
65. The Ministry of Finance is empowered to prohib it, by means of a supreme decree, imports of 
goods coming from or originating in countries that have imposed trade restrictions on Chile.45  The 
authorities have indicated that this provision has never been applied. 
(b) Import restrictions and licensing 
66. The Constitutional Organic Law of the Centra l Bank does not allow the establishment of 
quotas for imports (or exports).46  Consequently, Chile does not a pply quantitative restrictions on 
imports, and it has no import licensing regime.47 
67. Nevertheless, the import of certain products re quires that endorsement, authorization or 
certification be obtained in advance from an offici al control body.  The most important among these 
supervisory services are the Servicio Agrícola y Ganadero  - SAG (Agriculture and Livestock 
Service), the Ministry of Health (MINSAL), th rough its Regional Ministerial Secretariats, the 
Directorate-General of Recruitment and Mobilization of the Armed Forces and the Directorate of 
Frontiers and Borders.  Table III.4 shows goods the import of which is subject to some type of 
administrative formality, including sanitary or phyt osanitary permits and compliance with technical 
regulations (see also (2)(viii) and (ix) below).  Th ese formalities apply indiscriminately to all Chile's 
trading partners and are automatically approved. 
Table III.4 
Goods subject to import formalities 
Goods that require approval, certification or authorizat ion Supervisory body Type of formality/legal basis 
Firearms, ammunition, explosives and inflammable or 
asphyxiating chemical substances  Directorate-General of 
Recruitment and Mobilization of 
the Armed Forces Law No. 17.798 
Written or audiovisual material relating to martial arts for 
teaching purposes, irrespective of the person undertaking the 
transaction Directorate-General of 
Recruitment and Mobilization of 
the Armed Forces Law No. 18.536 
                                                      
45 Article 88 of the Constitutional Organic Law of the Central Bank of Chile. 
46 Idem . 
47 WTO documents G/LIC/N/1/CHL/1 of 5 June 1996 and G/LIC/N/3/CHL/3 of 28 September 2007. Chile WT/TPR/S/220 
 Page 39 
 
 
  Goods that require approval, certification or authorizat ion Supervisory body Type of formality/legal basis 
Enriched fissile or radioactive elements or materials, 
radioactive substances, devices or tools that emit ionic 
radiation Chilean Nuclear Energy 
Commission Decree No. 323/1974 of the 
Ministry of the Economy 
Alcohol, alcoholic beverages and vinegar Agriculture and Livestock Service  Law No. 18.164/1982 
Plant products and products that may be dangerous to plants Agriculture and Livestock Service Law No. 18.164/1982 
Animals, animal products a nd by-products and waste of 
animal or plant origin Agriculture and Livestock Service Law No. 18.164/1982 
Fertilizers and pesticides Agriculture and Livestock Service Law No. 18.164/1982 
Food products or by-products of animal or plant origin Agriculture and Livestock Service Law No. 18.164/1982 
Food products of any kind MINSAL Regional Ministerial 
Secretariats  Law No. 18.164/1982 
Toxic substances or substances that are dange rous to health MINSAL Regional Ministerial 
Secretariats  Law No. 18.164/1982 
Pharmaceutical or food products for medical and/or cosmetic 
use MINSAL Regional Ministerial 
Secretariats Law No. 18.164/1982 
Narcotics and psychotropic substances that cause addiction MINSAL Regional Ministerial 
Secretariats Law No. 18.164/1982 
Toxic substances or substances dangerous  to health MINSAL Regional Ministerial 
Secretariats Sanitary Code (DFL 
No. 725/1968);  Sanitary 
Regulations for Foodstuffs;  
MINSAL Decree No. 977 
Hydrobiological resources in any state of growth, including 
ornamental species Undersecretariat of 
Fisheries/National Fisheries 
Service  Law No. 18.892/1989, 
Decree No. 96/1996, Decree 
No. 730/1995, Decree 
No. 626/2001, Decree No. 175/1980 of the Ministry of 
the Economy
 
Fisheries products, including raw materials for processing and 
exporting, bait and food intended for hydrobiological species National Fisheries Service Law No. 18.892/1989, Decree 
with Force of Law No. 5/1983 
Cinematographic films and video tapes, to be marketed or for 
commercial use  Film Classification Board Decree Law No. 679/74, 
amended by Law No. 18.853 
Wastage and waste of batteries and accumulators;  waste of zinc, lead, antimony, beryllium, cadmium, chromium, 
pharmaceutical products or organic solvents Ministry of Health Sanitary Code (DFL 
No. 725/1968), MINSAL Exempt 
Resolution No. 714/2002 
Human remains or ashes from their in cineration MINSAL Regional Ministerial 
Secretariats Sanitary Code (DFL 
No. 725/1968), MINSAL Decree 
No. 357/1970 
Species of wild fauna and flora protected by the CITES Administrative authority as 
defined in Article IX of the 
Convention Article IX of the CITES  
Source : Online information from the National Customs Service.  Viewed at:  http://www.ad uana.cl/prontus aduana/ 
(vii) Anti-dumping, countervailing and safeguard measures48 
68. During the period under review, Chile imposed anti-dumping, countervailing or safeguard 
measures on a few occasions.  These measures have tended to be applied to certain agricultural 
products.  In January 2009, only one anti-dumping duty was in force.  In view of the exceptionally 
short periods during which continge ncy measures remain in effect, Chile's legislation has the potential 
to discourage their use for protectionist purposes a nd prevent the distortions this implies for the 
allocation of resources.  Moreover, in certain of th e RTAs it has signed, Chile has agreed that there 
                                                      
48 For an analysis of the development and operation of Chile's contingency measures regime, see 
Sáez (2006), pp. 109-135. WT/TPR/S/220 Trade Policy Review 
Page 40 
 
 
  should be no reciprocal application of such measure s and, at the multilateral level, advocates stricter 
disciplines for their use.  On the other hand, some  contingency measures applied by Chile have been 
the subject of complaints under the WTO dispute settlement mechanism. 
(a) Anti-dumping and countervailing measures 
69. Chile's legal framework for anti-dumping and countervailing measures comprises Law 
No. 18.525 of 30 June 1986 and amendments thereto49, Ministry of Finance Decree No. 575 of 
17 June 1993 establishing the implementing Regula tions for Article 11 of Law No. 18.525, the 
Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement) and the 
SCM Agreement.  Both these Agreements have for ce of law pursuant to Supreme Decree No. 16 of 
the Ministry of Foreign Affairs of 17 May 1995.  Should there be any discrepancy between these 
Agreements and Law No. 18.5 25, the former prevail. 
70. Chile's legislation in this respect has been  notified to the WTO and examined by the 
Committees on Anti-Dumping Practices and on Subsidies and Countervailing Measures.50  In these 
Committees, Chile provided replies to the questions raised by Brazil and Argentina.51  There have not 
been any changes to Chile's relevant legislation since 2003. 
71. Chile has notified the WTO that the Comisión Nacional Encargada de Investigar la 
Existencia de Distorciones en el Precio de las Mercaderías Importadas  - CNDP (National 
Commission responsible for investigating distortions  in the price of imported goods) is the competent 
authority for anti-dumping and subsidization investigations.52  The CNDP was set up by Article 9 of 
Law No. 18.525 and is composed of the National Economic Prosecutor, who chairs the Commission, 
two representatives of the Central Bank of Chile, a re presentative each from the Ministries of Finance, 
Agriculture, the Economy, and Foreign Affairs, an d by the National Director of Customs.  The 
Central Bank is responsible for the CNDP's Tec hnical Secretariat.  The Commission's decisions are 
adopted by a majority of votes. 
72. The President of the Republic has the power to  determine which goods are to be subject to 
such duties, their amount and duration, following a report from the CNDP.53  It is the task of the 
CNDP to examine complaints of distortion in the prices of imported goods.  The complaints may be 
submitted by any domestic industry, or on its behalf , and must contain information substantiating the 
existence of the distortion, the way in which it is causing actual or imminent serious injury to 
domestic production and the causal relationship betw een the imports at distorted prices and the 
alleged injury or threat of injury.  The CNDP may al so initiate investigations ex officio if it has the 
background information justifying this and it th en follows the same procedures as those for 
investigations following a complaint;  the authorities ha ve indicated that in ex officio investigations 
the provisions laid down in the WTO Anti-Dumpi ng Agreement and SCM Agreement, as applicable, 
are followed. 
                                                      
49 Law No. 19.155 of 13 August 1992;  Law No. 19.383 of 5 May 1995;  and Law No. 19.612 of 
31 May 1999. 
50 WTO documents G/ADP/N/1/CHL/1 and G/SCM/N/1/CHL/1 of 7 April 1995 and 
G/ADP/N/1/CHL/2 and G/SCM/N/1/CHL/2 of 14 March 2000. 
51 WTO documents G/ADP/Q1/CHL/3 and G/ SCM/Q1/CHL/3 of 5 December 2000 and 
G/ADP/Q1/CHL/4 and G/SCM/Q1/CHL/4 of 30 April 2001. 
52 WTO document G/ADP/N/14/Add.25 of 29 April 2008. 
53 Article 8 of Law No. 18.525. Chile WT/TPR/S/220 
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  73. Investigations into dumping or subsidization mu st be concluded within one year and at the 
latest by 18 months after the date of publication of the notice of initiation.  Within 60 days from the 
initiation of the investigation, the CNDP may re commend to the President of the Republic that 
provisional duties, which must not remain in force for more than four months or six months in special 
cases, be applied.  If after carrying out the inve stigation, the CNDP finds that there are price 
distortions which are causing serious actual or im minent injury to domestic production, it issues a 
resolution recommending to the President that definitive anti-dumping or countervailing duties be applied.  The duties must not exceed the margin of  the distortion and may not be imposed for more 
than one year because they are cons idered to be a temporary solution.
54  The duties may not be 
renewed and may only be extended if the CNDP carries out a new investigation and finds it necessary 
to recommend the application of new duties. 
74. The President of the Republic may decide not to follow the CNDP's recommendation and 
refrain from imposing anti-dumping or countervailing duti es.  Nevertheless, if it is decided to impose 
duties, these may not exceed the level recommended by the CNDP.  There is no provision in Chile's 
legislation for applying anti-circumvention measures or  for retroactive application of measures.  All 
preliminary or definitive determin ations are published, together with the initiation and end of the 
investigation, by means of the relevant notificatio ns in the Official Journal and in reports on the 
CNDP's sessions which, once approved, are publis hed and may be viewed on the CNDP's website55;  
the foregoing is without prejudice to the protection of confidential information. 
75. Between January 2003 and December 2008, Chile  initiated three anti-dumping investigations 
(compared to nine over the period 1997-2002), one of which was initiated ex officio by the CNDP and 
concerned imports of wheat flour from Argentina.  Tw o of the investigations gave rise to provisional 
duties, which were subsequently c onfirmed by the final determination.56  The third case ended without 
the imposition of measures because no dumping or injury was found.57  In June 2009, Chile did not 
have any anti-dumping investigations under way and applied one definitive anti dumping duty of 
30.3 per cent on imports of wheat flour from Argentina.  In May 2009, Argentina requested 
consultations pursuant to the WTO Dispute Se ttlement Understanding regarding this measure.58 
76. Between January 2003 and Dece mber 2008, Chile initiated two anti-subsidy investigations 
(compared to four between 1997 a nd 2002).  Both investigations e nded without the imposition of 
measures;  in one case, because no injury was found  and in the other because the investigation was 
terminated as there was a simultaneous anti-dum ping investigation into the same product from the 
same origin.  The products in question were wheat flour and chicken meat from Argentina, 
respectively.  In January 2009, there were no counter vailing duties in effect and no investigations into 
subsidization under way. 
77. In connection with its negotiations on RT As, Chile has sought commitments that no 
anti-dumping measures would be appl ied between parties.  This is the case, for example, in the 
agreements signed with Canada a nd EFTA.  Other trade agreements signed by Chile simply reaffirm 
                                                      
54 As a general rule, the WTO Anti-Dumping Agreement allows the application of definitive 
anti-dumping duties for up to five years (Article 11). 
55 The CNDP's website can be vi ewed at:  http://www.cndp.cl 
56 The two cases both referred to the same product (w heat flour) from Argentina.  This is because 
Chile's legislation requires that anti-dumping duties only re main in effect for one year and their renewal requires 
initiation of a new investigation. 
57 This case concerned imports of chicken meat from Argentina. 
58 WTO document WT/DS393/1 of 14 May 2009. WT/TPR/S/220 Trade Policy Review 
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  the provisions of the WTO Anti-Dumping Agreement (s uch as those with the P-4, the United States 
and China) or do not include any relevant  provisions (the agreement with Japan). 
78. In the Doha Round negotiations Chile has submitt ed, either individually or together with 
other Members, many proposals to clarify and improve the provisions of the Anti-Dumping 
Agreement and make them stricter in order to prevent the use of anti-dumping measures as a means of 
protection.  Among the issues covered in the propo sals are disciplines for initiation of investigations, 
the practice of "zeroing", concepts of "lesser duty" a nd "public interest", substantive rules relating to 
the determination of dumping and injury, the dura tion and reviews of anti-dumping measures, as well 
as due process and transparency.59 
(b) Safeguard measures 
79. Chile's legal framework for safeguards includes Law No. 19.612 of 31 May 1999 (which 
amended Law No. 18.525), the Regulations on the a pplication of safeguard measures, published by 
means of Ministry of Finance Decree No. 909 of  17 June 1999, Article XIX of the GATT 1994 and 
the WTO Agreement on Safeguards.  Chile has notified Law No. 19.612 to the WTO Committee on 
Safeguards.60 
80. Law No. 19.612 for the first time incorporated provisions on safeguards in Chilean legislation 
and empowered the CNDP to undertake investig ations and recommend the adoption of such 
measures.  The President of the Republic may, by means of a supreme decree, impose safeguard measures subject to a favourable report from the CNDP.
61  There have been no changes to the 
safeguards legislation since 2003. 
81. At the written request of a domestic industry, or on its own initiative, the CNDP may initiate 
an investigation to determine whether or not there is serious injury or threat of injury to the domestic 
industry in question.  The authorities have indicated that in ex officio investigations the procedures 
and requirements laid down in the WTO Agreemen t on Safeguards are followed.  Serious injury 
means a significant impairment in the position of a domestic industry.  When determining injury or 
threat of injury, the CNDP must evaluate all rele vant factors of an objective and quantifiable nature.62 
82. Within 90 days of the initiation of the investig ation, the CNDP must decide whether, in the 
light of the information available, it can be c oncluded that a product has been imported in such 
increased quantities and under such co nditions as to cause or threaten to cause serious injury to the 
domestic industry that produces like or directly comp etitive products.  If this is the case, it has to issue 
a resolution recommending the imposition of tariff surcharges and forward this, together with 
information on the case and its findings, to the President of the Republic, who adopts a final decision 
by means of a Ministry of Finance decree.63 
83. In emergencies where any delay would cause da mage which it would be difficult to repair, 
and within 30 days of the initiation of an investig ation, the CNDP may request the President of the 
Republic to apply provisional tariff surcharges.  Th e CNDP's decision must be based on a preliminary 
                                                      
59 For an overview of Chile's position in the anti-dumping negotiations, see WTO document 
TN/RL/W/171 of 15 December 2005. 
60 WTO document G/SG/N/1/CHL/2 of 24 August 1999. 
61 Article 7 of Law No. 18.525, as amended by Law No. 19.612. 
62 Articles 11 and 12 of the Regulations on the application of safeguard measures (Decree No. 909). 
63 Articles 16 and 17 of Decree No. 909. Chile WT/TPR/S/220 
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  determination of clear evidence that increased imports  have caused or are threatening to cause serious 
injury.64 
84. Safeguard measures may only be adopted in the form of ad valorem  tariff surcharges;  Chile's 
legislation does not allow the imposition of quotas or specific tariffs.  If the proposed surcharge, 
added to the tariff in effect, exceeds the tariff bound in  the WTO, the approval of three quarters of the 
members of the CNDP is required.  Safeguard meas ures may not be applied for more than one year, 
including the period during which the provisional measure was in effect.  The measures may be 
extended by the President for a pe riod not exceeding one year, subject  to a favourable report from the 
CNDP.65  If they are extended, a timetable for their gradual dismantling must be drawn up.  
Provisional measures may not remain in effect for more than 200 days.  The CNDP may at any time 
recommend that the tariff surcharges be modified or a bolished prior to their expiry.  It should be noted 
that the periods of duration and extension of safeg uard measures in Chile's legislation are much 
shorter than those laid down in the WTO Agreement on Safeguards. 
85. Chile initiated three safeguards investiga tions between January 2003 and December 2008 
(compared to 11 over the period 1997-2002).  In all three cases, the investigation led to the imposition 
of a definitive measure in the form of an ad valorem  tariff surcharge.  Two of the investigations 
concerned the same product (wheat flour);  one of them was initiated by the CNDP ex officio.  The 
third investigation concerned da iry products (powdered milk, liq uid milk and Gouda cheese);  the 
definitive measure was eliminated be fore it expired.  In June 2009, th ere were no safeguard measures 
in effect and no investigations under way. 
86. During the period under review, there were tw o cases before the WTO dispute settlement 
mechanism concerning a safeguard  measure, initially provisional66 and subsequently definitive67, 
imposed by Chile on imports of certain Argentine da iry products.  After consu ltations had been held 
with Chile in March 2007, Argentina requested  the establishment of a Panel to address both 
disputes.68  The DSB set up the Panel, but shortly afterw ards it suspended its work at the request of 
Argentina.  In August 2008, the decision to establis h a Panel lapsed without the latter having resumed 
work.69  Among the complaints raised by Argentina were the lack of an adequate definition of like or 
directly competitive products, the absence of eviden ce proving an increase in imports, the significant 
overall impairment of the domestic  industry and the causal link between them.  Argentina also 
claimed that the measure discriminated be tween its products and products from other 
WTO Members.70 
87. When imposing safeguard measures, Chile also complies with the provisions in its RTAs, 
which include various types of safeguards.  Bilate ral safeguards strictly apply to trade between the 
parties and are normally imposed only during the ta riff reduction period.  Other types of safeguards 
apply to "sensitive" sectors (for example, agriculture and textiles);  in such case s, their use is subject 
to special procedures and to limits on the type of measure that may be utilized (generally speaking, 
only tariffs). 
                                                      
64 Article 14 of Decree No. 909. 
65 Article 21 of Decree No. 909. 
66 WTO document WT/DS351/1 of 30 October 2006. 
67 WTO document WT/DS356/1 of 9 January 2007. 
68 WTO document WT/DS351/2 and WT/DS356/2 of 9 March 2007. 
69 WTO document WT/DS351/4 and WT/DS356/4 of 1 August 2008. 
70 WTO document WT/DS351/2 and WT/DS356/2 of 9 March 2007. WT/TPR/S/220 Trade Policy Review 
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  88. Some of the RTAs signed by Chile also contai n provisions exempting one or more parties 
from the imposition of the global safeguard measures adopted within the WTO framework.71  In some 
instances, Chile has invoked these provisions in orde r to refrain from applying safeguards on imports 
from its preferential partners.72  Nevertheless, in the most recent RTAs signed by Chile there are no 
exceptions to global safeguards, and the parties merely reaffirm their rights and obligations under 
Article XIX of the GATT and the WTO Agreement on Safeguards.73  A study has shown that the fact 
of exempting preferential partners may lessen th e effectiveness of a global safeguard by creating 
incentives to divert trade towards trading part ners that are not affected by the measure.74 
(viii) Technical regulations and standards 
89. There have been no major changes to Chile's  legal and institutional framework for the 
preparation and application of technical regulations , standards and conformity  assessment procedures 
since 2003.  The rules require that such measures should be drafted on the basis of the principles of 
non-discrimination and transparency and, whenever  possible, international standards.  Between 
January 2003 and January  2009, Chile submitted 53 notifications to the WTO on technical regulations 
and over the same period adopted 169 new regulations. 
(a) Transparency 
90. The Agreement on Technical Barriers to Trade (T BT Agreement) came into force in Chile in 
May 1995.75  Law No. 19.912 of 4 November 2003 provid es for a mechanism for compliance with the 
notification commitments required by the TBT Agre ement.  In addition, Ministry of the Economy 
Decree No. 77 of 14 June 2004 determined the require ments to be met by institutions responsible for 
drawing up, adopting and implementing technical re gulations and conformity assessment procedures 
(see below).  The Decree also lays down principles to  be observed in standardization activities such as 
using international standards as a basis, not cr eating unnecessary barriers to trade, national and MFN 
treatment, and wherever possible technical regulati ons should be drafted on the basis of operational 
criteria.  Chile's most recent communication on the implementation and administration of the TBT Agreement dates from March 2006.
76 
91. Up until April 2008, the Ministry of the Economy, through the Departamento de Comercio 
Exterior  - DECOEX (Foreign Trade Department), was responsible for administering the 
TBT Agreement, acting as the enquiry point for technical regulations and conformity assessment 
procedures, and making notifications to the WTO.77  Since May 2008, these tasks have become the 
responsibility of the DIRECON, which belongs to the Ministry of Foreign Affairs.  Technical 
regulations are voluntary and the Instituto Nacional de Normalización  - INN (National 
Standardization Institute) is the service in charge (see (c) below). 
                                                      
71 For example, the agreements signed with Canada, Mexico, Peru and Central America. 
72 This is the case for the safeguard measures applied to socks made from synthetic fibres (2001), 
fructose and fructose syrup (2002), hot-rolled coils and sheets (2002), and wheat flour (2005 with an extension 
in 2006), from which imports from Canada, Mexico and Peru were excluded. 
73 See, for example, the agreements with Panama, Ch ina, EFTA, the P-4 and th e Republic of Korea.  
The agreement with Japan does not contain any provision on global safeguards. 
74 Sáez (2006), p. 127. 
75 Ministry of Foreign Affairs Decree No. 16.1995 of 17 May 1995. 
76 WTO document G/TBT/2/Add.16/Rev.1. 
77 Ibid. Chile WT/TPR/S/220 
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  92. The DIRECON also chairs the National Commission on Technical Barriers to Trade, which 
coordinates the work of the various governmen t entities involved in standardization activities.78  The 
purpose of the Commission is to ensure complian ce with obligations under the TBT Agreement, 
coordinate Chile's position in the relevant trade ne gotiations and promote standardization as a tool in 
support of Chile's technological modernization process.   In October 2008, a gove rnment/private sector 
working group on technical barriers to trade was set up, in which the DIRECON and the production sector work together to overcome the technical barri ers faced by Chilean exports in foreign markets.  
During the period under review, no concerns or co mplaints relating to the technical regulations 
implemented by Chile were submitted to the WTO Committee on Technical Barriers to Trade. 
93. Chile is a member of the International Organization for Standardization (ISO), the 
International Organization of Lega l Metrology (OIML), the Inter-American Metrology System (SIM), 
the Panamerican Standards Commission (COPANT), th e International Accreditation Forum (IAF), the 
International Laboratory Accreditation Coopera tion (ILAC), the InterAmerican Accreditation 
Cooperation (IAAC), the Asociación MERCOSUR de Normalización  - AMN (MERCOSUR 
Standardization Association)
79, the Bureau International des Poids et Mesures  - EIPN (International 
Bureau of Weights and Measures)  and the Codex Alimentarius. 
94. Most of the RTAs signed by Chile contain a chapter on technical regulations and standards 
that includes rules on transparency, equivale nce, mutual recognition and risk assessment. 
(b) Technical regulations 
95. Mandatory technical regulations are prepared  by the government entities responsible for 
regulating their respective areas of competence, fo r example, the Ministries of the Economy, Health, 
Agriculture, Transport and Telecommunicati ons, Housing and Urba n Planning, and the 
Superintendencia de Electricidad y Combustibles  - SEC (Supervisory Authority for Electricity and 
Fuel).  These regulations are in the form of laws, de crees or resolutions.  As Chile is a unitary State, 
technical regulations and conformity assessment pr ocedures are drafted by the Central Government. 
96. Pursuant to the aforementioned Decree No. 77, the drafting and adoption of technical 
regulations and conformity assessment procedures is  initiated by the regulatory authority or by 
stakeholders that propose the measure.  The pro cedure then goes through th e following stages:  the 
competent government entity publishes the proposed technical regulation and/or conformity assessment procedure by means of a notice in a nationwide medium or on its website, giving an excerpt of the draft, its aim and the reasons for th e approach adopted, at the same time forwarding a 
copy to the DIRECON for the purposes of notificati on to the WTO.  A minimum period of 60 days is 
given as of publication of the notice for the submi ssion of comments in writing, although this may be 
extended, except in emergency situations involvi ng safety, health, environmental protection or 
national security.  Decree No. 77 also provides th at, except in cases of emergency, the technical 
regulations and conformity assessment procedures no tified to the WTO may only be issued by the 
competent entities at the end of a period of at least  60 days following their notification to the WTO. 
                                                     
 
78 The National Commission on Technical Barriers to Tr ade is composed of the Ministries of Foreign 
Affairs, the Economy, Housing and Urban Planning, Transport and Telecommunications, National Defence, 
Health, Agriculture, Public Works, the Supervisory Auth ority for Health Services, the National Environmental 
Commission and the National Energy Commission.  The Ministry of the Economy is represented by the Undersecretariat of the Economy, th e National Consumer Service, the U ndersecretariat of Fisheries, the 
National Fisheries Service and the Supervisory Authority for Electricity and Fuel. 
79 Chile participates in the AMN as an as sociate member and has no voting rights. WT/TPR/S/220 Trade Policy Review 
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  97. After they have been approved, technical re gulations and conformity assessment procedures 
are published in the Official Journal.  A period of at least six months must elapse between their publication and their implementation, unless such a pe riod would mean that the legitimate objectives 
of the measure could not be achieved.  Once the measure has been published, replies are given to the 
most important comments received.  There is no special mechanism for reviewing or abolishing 
technical regulations.  Nevertheless, the authorities have indicated that the competent agencies review 
technical regulations and conformity assessment pro cedures on a regular basis in order to repeal those 
that have become obsolete. 
98. According to the authorities, the vast majority of technical regulations are based on 
international standards, but the authorities do not ha ve any information on the exact proportion.  As an 
example, they indicated that, in the electricity sector, all the technical regulations applied by the 
Supervisory Authority for Electricity and Fuel are id entical to international standards.  The authorities 
point out that the fact that the majority of tec hnical regulations are based on international standards 
and have no significant impact on trade explains wh y not all the measures adopted have been notified 
to the WTO. 
99. Chile keeps an inventory of all technical re gulations, conformity assessment procedures and 
public consultation procedures, which can be vi ewed at:  www.reglamentostecnicos.cl.  In 
December 2008, Chile had a total of 689 technical re gulations and conformity assessment procedures 
in effect, of which 169 had been adopted since January 2003.
80 
100. Between January 2003 and January 2009, Ch ile submitted 53 notifications to the 
WTO Committee on Technical Barriers to Trade, of which 36 concerned technical regulations and 
17 conformity assessment procedures.81  With the exception of three notifications concerning 
emergency situations, in all the other cases the techni cal regulations were notified at the drafting stage 
and a period of 60 days was given for submitting co mments on the proposed measure or amendment.  
The purpose of most of the measures notified is to protect human safety and health, and they concern 
mainly foodstuffs, toys, household electrical app liances, building materials, vehicles, pharmaceuticals 
and cosmetics.  Seven government bodies took part in preparing the measures notified, including the 
Ministries of Health, the Economy, Housing and Ur ban Planning, Transport and Telecommunications, 
and the National Environmental Commission. 
(c) Standards 
101. Chilean technical standards (NCh) are volunta ry and are drawn up and disseminated by the 
INN.  This is a private-law, non-profit-making foundation, set up by the Corporación de Fomento de 
la Producción  - CORFO (Chilean Economic Development Ag ency), with the aim of promoting the 
use of metrology and technical standards.  In 1995, the INN adopted the Code of Good Practice for the Preparation, Adoption and Application of  Standards, annexed to the TBT Agreement.
82  T h e  
internal procedure for drafting Chilean standards is  set out in Chilean Standards NCh 1.Of 2004.  The 
                                                      
80 The inventory of technical regulations also contains sanitary and phytosanitary measures as some 
decrees and regulations cover both types of measure in the same instrument. 
81 The measures notified can be consulted in WTO documents G/TBT/N/CHL/35 to 87 (of various 
dates). 
82 WTO documents G/TBT/CS/N/15 of 16 October 1995 and G/TBT/CS/2/Rev.14 of 
20 February 2008. Chile WT/TPR/S/220 
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  authorities have indicated that this procedure is cons istent with the criteria internationally accepted by 
the ISO and the International Electrotechnical Commission (IEC).83 
102. The process of preparing a standard is initiated by  the INN or at the request of any interested 
government or private entity.  If the necessary fi nancing is available, a technical committee is 
established to draw up a provisional draft standard, taking into account the relevant international or 
regional standards.  The private sector (producers, importers, traders and consumers), the competent authorities and representatives of academia take part in this committee.  Once the standard has been 
drawn up, the draft is put up for public consultation for a period of 60 days on the INN website and its 
text is made available to any person who so requ ests.  The comments receiv ed in the course of the 
public consultation are forwarded to the technical committee, which decides whether or not they are 
relevant.  Once there is a consensual text, the technical committee submits it to the INN Council for 
approval.  After the Chilean standard has been ap proved, it is sent to the competent ministry for 
endorsement and publication in the Official Journa l.  Unless any legal provision makes it mandatory, 
the "endorsed" standard is voluntary. 
103. The INN keeps a catalogue of Chilean standard s, together with information on standards 
under consideration, which can  be viewed on its website.
84  By December 2008, there were 
3,250 Chilean standards, compared with the 2,600 in  effect in 2003.  According to the authorities, a 
large number of Chilean standards are equivalent or similar to international standards.  Nevertheless, 
Chile does not consider it appropriate to apply certain  international standards at the national level, for 
example those on seismic standards for designs a nd buildings, because of local seismic conditions. 
(d) Conformity assessment 
104. In Chile, conformity assessment includes, on th e one hand, mandatory mechanisms under the 
responsibility of the competent government entities in  the case of technical regulations and, on the 
other, a voluntary system administered by the INN in the case of standards. 
105. All Chilean and imported products must comply with the corresponding technical regulations.  
As a general rule, compliance with technical regula tions is verified after the products have been 
placed on the market;  the exceptions mainly concer n food products, beverages, medicines, weapons 
and radioactive substances which, in the case of impo rts, are inspected at the border.  In some cases, 
the ministry or government entity that issued the technical regulation performs the inspection using its 
own infrastructure;  in most cases, however, the government authorities call on the conformity 
assessment bodies accredited by the INN.  The gove rnment bodies which recognize INN accreditation 
include the Ministries of Agriculture, the Economy, Housing and Urban Planning, the Servicio 
Nacional de Pesca  - SERNAPESCA (National Fisheries Service), and the SEC.  The drafting and 
implementation of conformity assess ment procedures follows the same stages and time-limits as 
technical regulations (see (b) above). 
106. The INN is responsible for conformity assessment procedures for voluntary technical 
standards.  For this purpose, the INN has a National Accreditation Scheme, which accredits 
certification, verification and inspection bodies and clin ical, testing and calibration laboratories.  This 
scheme is governed by the procedures laid down in the Regulations for the accreditation of 
conformity assessment bodies (INN-R401) and by the international guidelines of the ISO and the IEC.  Accreditation is given for a rene wable period of three years, during which the INN carries out 
inspections in order to ensure that the accredited b ody continues to comply with the requirements.  
                                                     
 
83 WTO document G/TBT/2/Add.16/Rev.1 of 16 March 2006. 
84 The INN's website is at:  http://www.inn.cl WT/TPR/S/220 Trade Policy Review 
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  Both Chilean and foreign conformity assessment bodi es participate in the scheme and they include 
universities, government and private institutions and subsidiaries of multinationals.  The INN keeps a 
directory of accredited conformity assessment bodi es, and this can be consulted on its website. 
107. In Chile, conformity assessment is generally carried out by a third party, that is to say an 
accredited body that is independent of the supplier a nd the buyer.  There is no supplier's declaration of 
conformity (SDoC). 
108. Chile has no mutual recognition agreements (MRA s) on technical regulations with its trading 
partners.  Nevertheless, in the APEC context, it is a participant in Part I of the MRA on electrical and 
electronic equipment (EEMRA) and envisages participa ting in Part II in the future.  Chile is also 
considering participating in the APEC sectoral F ood MRA.  The SEC recognizes the results of tests 
and certification from organizations on a list that  includes 14 countries (Austria, Belgium, Canada, 
Denmark, France, Germany, Italy, Japan, the Netherlands, Norway, Sweden, Switzerland, the 
United Kingdom and the United States). 
109. The Red Nacional de Metrología  - RNM (National Metrology Network) is a government 
private body whose purpose is to guarantee and dissemi nate the traceability of measurements made in 
Chile and obtain their internati onal recognition.  The RNM is composed of the Ministry of the 
Economy, as the national authority, the INN as the co ordinating and supervisory unit, the laboratories 
that safeguard the national measurement standards, responsible for administering the measurements of 
seven internationally recognized measurements, an d calibration or testing laboratories.  The INN 
provides the RNM with support, accrediting the laboratories keeping the national measurement 
standards as well as calibration laboratories, so as to be able to show that they are in a position to 
guarantee traceability.  Work is going ahead on drawi ng up a National Metrology Plan to further build 
up Chile's metrological system in order to respond to the present and future needs of international 
trade. 
(ix) Sanitary and phytosanitary measures 
110. There have been no fundamental changes to Chile 's regulations on animal and plant health 
since 2003.  There are no general regulations on drafting and notifying sanitary and phytosanitary 
(SPS) measures;  each competent body follows its own internal pr ocedures.  During the period under 
review, Chile actively supported improvements to  implementation of the WTO Agreement on the 
Application of Sanitary and Phytosanitary Measur es (SPS Agreement) in areas such as regionalization 
and transparency.  It has also submitted a large number of notifications to the WTO Committee on 
Sanitary and Phytosanitary Measures (SPS Committee);   in a small number of cases, the deadline for 
submitting comments expired before the date of the notification while, in others, the period given for 
comments was slightly less than 60 days. 
(a) Transparency 
111. Since 2003, there have been no fundamental chan ges to Chile's regulations on animal and 
plant health.  In addition to the SPS Agreement, the main instruments governing this area are the 
Organic Law on the Agriculture and Livestock Serv ice (No. 18.755 of 1989), the Animal Health Law 
(DFL No. 16 of 1963), Decree-Law No. 3.557 of 1982 laying down provisions on agricultural protection, the General Law on Fisheries and Aquacu lture (No. 18.892 of 1989), the Regulations on 
procedures for importing hydrobiological species (DS (Supreme Decree) No. 96-96 of the Ministry of the Economy), the Regulations on certification an d other sanitary requirements for the import of 
hydrobiological species (Exempt Decree No. 626/2001) , the Regulations on the first import of species Chile WT/TPR/S/220 
 Page 49 
 
 
  (Decree No. 730/1995), the Sanitary Code (DFL No. 725)  and the Sanitary Regulations for foodstuffs 
(DS No. 977 of 1996). 
112. The main bodies involved in drafting and implementing SPS measures are the Ministries of 
Agriculture, Health, the Economy and Foreign Affair s.  The Ministry of Agriculture, through the 
SAG, is responsible for everything concerning animal  health (with the exception of aquatic animals) 
and for the protection of plants, including the a pplication of measures for the import and export of 
animals, plants, and animal and plant products.  Th e SAG acts as the national notification and enquiry 
service for the purposes of the SPS Agreement.85 
113. The Ministry of Health, through its MINSAL Re gional Ministerial Secretariats, is responsible 
for approving and inspecting the establishment a nd operation of facilities that produce, process, 
package, store, distribute and sell foodstuffs, and fo r authorizing or rejecting the import and marketing 
of food and beverages intended for human consumption.  The Ministry is also responsible for setting 
the levels of tolerance and verifying residues of ag ricultural chemicals in domestically produced or 
imported foodstuffs. 
114. The Ministry of the Economy, acting thr ough SERNAPESCA, is responsible for aspects 
connected with health checks on aquatic animal s, including the adoption and implementation of 
measures to prevent the entry of diseases that affect hydrobiological resources. 
115. The Ministry of Foreign Affairs, acting through the DIRECON, chairs the National 
Commission on the Coordination of Sanitary and Phyt osanitary Measures, whose task it is to follow 
up commitments and action plans relating to SPS m easures arising from the trade agreements signed 
by Chile, examine related trade concerns, and revi ew Chile's position in the relevant international 
forums. 
116. Chile is a member of the three international organizations mentioned in the SPS Agreement, 
namely, the Codex Alimentarius Commission, the Wo rld Organisation for Animal Health (OIE) and 
the International Plant Protection Convention (IPPC). 
117. During the period under review, four measures ta ken by Chile were the subject of discussion 
in the WTO SPS Committee.86  Three of these measures (restrictions on imports of wheat and fruit, 
restrictions concerning foot-and-mouth disease, an d pet food import requirements) were resolved 
during the period under review.87  A fourth measure, which came before the Committee for the first 
time in 2007, concerns the quarantine treatment (fumigation) of aircraft which, according to 
Argentina, affects the export of live bees from Argentina to Chile.88  After initiating bilateral talks 
with Chile, at the SPS Committee meeting in June  2009 Argentina announced that the problem had 
been resolved. 
118. The authorities have indicated that, in order to enhance and complement implementation of 
the SPS Agreement, Chile has concluded bilateral agre ements of different kinds, some as chapters of 
or annexes to its RTAs (see Chapter II(4)(ii)) and others at the institutional level through the agencies 
or services in charge of animal and plant health matters.89  The SAG has institutional cooperation 
                                                      
85 WTO document G/SPS/ENQ/24 of 1 October 2008. 
86 WTO document G/SPS/GEN/204/Rev.8 and Adds 1-3 of 27 March 2008. 
87 WTO document G/SPS/GEN/204/Rev.8/Add.3 of 27 March 2008. 
88 WTO document G/SPS/R/46, paragraphs 16 and 17, of 2 January 2008. 
89 WTO document G/SPS/GEN/863 of 7 July 2008. WT/TPR/S/220 Trade Policy Review 
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  agreements with services and laboratories in 25 countries.90  Chile does not have any recognition 
agreements on the equivalence of SPS measures, although these are covered in its regional trade 
agreements to a varying degree.91 
(b) Implementation 
119. The drafting and implementation of SPS measure s in Chile is the responsibility of the 
government services empowered for this purpose (Min istries of Agriculture, Health and the Economy) 
and is governed by procedures which ensure that  the objective of SPS measures is to protect the 
sanitary and phytosanitary status of products, on a scientific basis, and ensure a balance between 
sanitary and phytosanitary protection and the develo pment of trade flows.  SPS measures are drafted 
by the Central Government. 
120. There are no general regulations on the prepara tion and notification of SPS measures;  each 
competent body follows its own internal procedures.  The preparation process starts with the need to 
update a measure, a request from any particular count ry or the existence of a particular sanitary 
occurrence.  Drafts of SPS measures are drawn up by technical committees, which look at the 
background information, and take into account the re levant international standards.  The drafts are 
open for public consultation on the website of the corresponding agency and are simultaneously 
notified to the WTO through the SAG.  The consultation period lasts for 60 days, unless there is a request to extend this period or in cases of emerge ncy or trade facilitation.  The comments received 
are examined and taken into account if there is a good reason.  SPS measures appear in the form of 
resolutions from the competent agencies, which are published in the Official Journal;  there is no 
overall rule laying down a minimum period between publication of an SPS measure and its entry into 
force. 
121. The authorities have indicated that Chilean SPS measures are to a large extent based on the 
international standards or guidelines of the IPPC, the OIE and the Codex Alimentarius, unless special 
circumstances warrant a risk analysis and it is decided to impose special conditions or more stringent requirements than the international standards. 
122. Chile does not have an inventory of SPS measu res, although all the measures in force can be 
found on the Internet sites of the agencies that adopted them.
92  Between January 2003 and 
January 2009, Chile subm itted 185 notifications on sanitary a nd phytosanitary regulations to the 
WTO SPS Committee;  of these 11 concerned em ergency measures and the remainder draft 
measures.93  Around one half concerned the protection of plants and the remainder animal health and 
food safety, although some notifications related to  more than one measure.  The SAG was the body 
responsible for the large majority of the meas ures, followed by the Ministry of Health and 
SERNAPESCA.  It was noted that in six cases the deadline for submitting comments expired before the date of the notification, while in others th e period given for comments was slightly less than 
60 days. 
                                                     
 
90 Argentina, Australia, Bolivia, Brazil, Canada, China, Colombia, Cuba, the Dominican Republic, 
Ecuador, France, India, Is rael, Italy, New Zealand, Nicaragua, Norway, Paraguay, Peru, Philippines, the 
Russian Federation, Spain, the United Kingdom, the Unite d States and Venezuela.  Online information from the 
SAG, viewed at:  http://www.sag.gov.cl 
91 The agreements with th e EU and the P-4 deal with the questi on of the equivalence of SPS measures 
in greater detail. 
92 Online information from the SAG, viewed at:  http ://www.sag.gov.cl;  Ministry of Health, viewed at:  
http//www.minsal.cl;  National Fisheries Serv ice, viewed at:  h ttp://www.sernapesca.cl 
93 WTO documents G/SPS/N/CHL/118/Add.1 to G/SPS/N/CHL/290 (various dates). Chile WT/TPR/S/220 
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  123. Compliance with general and specific "sanitary requirements" is necessary for the import of 
livestock products.  These requirements can be viewed on the SAG website.94  The general 
requirements lay down the procedures for importing animals and poultry95 and for recognition of 
countries and zones free of disease96, measures for preventing bovine spongiform encephalitis 
(BSE)97, procedures for approving facilities where the products originate98, and regulations on the 
transit of animals, animal products and by produc ts.  The specific requireme nts are determined by 
species and by product and define the sanitary status applicable to the country or zone of origin, the 
facility of provenance, the animal or the product, as well as preshipment handling measures.  If there 
is no specific requirement for the product it is so ught to import, an import application must be 
submitted to the Livestock Protection Division of the SAG;  if the latter considers necessary, a risk 
analysis is undertaken. 
124. Livestock products imported must come from a facility approved in accordance with the 
relevant regulations99;  the list of facilities approved for expor ts to Chile is available on the SAG 
website.  Facilities that produce manufactured products  of animal origin and inputs for animal feed 
are exempt from the approval requirements, but must submit descriptions of their production 
processes. 
125. All imports of animals and animal products must be accompanied by an official sanitary 
certificate issued by the competen t sanitary authority in the country of origin, attesting that the 
product meets the relevant requirements.  All importe d animals, irrespective of their origin, must be 
put in quarantine. 
126. Imports of plants and plant products must comply with the phytosanitary requirements 
determined by the SAG in specific regulations p ublished in the Official Journal by means of 
resolutions.  These specific rules concern pl ant products for consumption, processing or 
manufacturing, for plant propagation or reproducti on, wood, packaging and like products.  Plant 
products must be free of pests that are not present in Chile.100  The regulations on the import of 
regulated articles or goods that are dangerous to pl ants are set out in Resolutions No. 350 of 1981, 
No. 3.185 of 2003 and No. 2.781 of 2006.101 
127. A phytosanitary certificate issued  by the competent authorities of the exporting country is 
required for plants or parts of plants, whether in th eir natural state or processed, if they can transmit 
pests or themselves constitute a pest, as well as for ar ticles that may be dangerous to plants (including 
plant by-products, live organisms, plant pots, agricultural materials and soil). 
128. If there are no phytosanitary requirements determ ined for a product, the party concerned must 
submit an application to the Agricultural Protecti on Department of the SAG for an import permit for 
regulated articles.  The latter examines the appli cation and undertakes a pest risk analysis (PRA) in 
                                                      
94 Online information from the SAG, viewed at:  http:// www.sag.gov.cl.  To see this information, select 
"Importaciones " and then " pecuarias ". 
95 Resolution No. 1.254/1991. 
96 Resolution No. 1.150/2000. 
97 Resolution No. 5.277/2004. 
98 Resolution No. 3.138/1999 and amendments thereto (Resolutions No. 1.995/2000 and 
No. 2.567/2003). 
99 As established in Resolution No. 3.138 of 1999 and amendments thereto. 
100 Resolutions No. 3.080 of 2003 and No. 792 of 2007. 
101 Online information from the SAG.  See:  h ttp://www.sag.gov.cl.  To view them, select 
"Importaciones " and then " agrícolas " and " forestale ". WT/TPR/S/220 Trade Policy Review 
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  order to determine the requirements for importin g the product.  The PRA may have one of two 
outcomes:  (i) issue of an import permit, laying  down the phytosanitary requirements and conditions 
for entry, which are put up for public consultation for a period of 60 days, notified to the WTO and 
then published in the Official Journal;  or (ii) rejection of the import application because there is a 
high or very high risk associated with the product.   The PRA's procedures are based on International 
Standard for Phytosanitary Measures (ISPM) No. 11 of the IPPC. 
129. The time required to carry out a PRA depends on the complexity of the case.  For plant health 
applications, it may take between three months to one  year;  in the case of livestock, the period varies 
from seven months to two years.  The State pa ys the cost of PRAs initiated on the basis of 
applications to import new products.  If inspectio n visits to the exporting country are required, 
however, the costs are borne by the interested part y.  According to the authorities, 968 agriculture 
related PRAs were conduc ted between 2003 and 2008, of which 9 53 resulted in an SPS measure, and 
this large number is attributable to the fact that the regulations adopted include numerous species.  In 
the fisheries subsector, at the end of 2008 thr ee PRAs were being conducted by SERNAPESCA.  For 
foodstuffs, risk analyses are the responsibility of the Ministry of Health. 
130. The quarantine applicable to plants and seeds depends on the phytosanitary status in their 
country of origin and is based on a risk analysis  in accordance with the IPPC guidelines.  Plant 
products may only enter Chile through the ports authorized for this purpose.102 
131. The import of food for human consumption requires approval by the Ministry of Health or its 
regional offices.  Import procedures provide for sa nitary controls and laboratory analyses.  The 
analyses are based on risk criteria and statistical da ta concerning the safety of the food.  Imports of 
pharmaceuticals, cosmetics and biochemical preparations must be registered and approved by the Ministry of Health's Public Health Institute.
103 
132. SERNAPESCA is responsible for sanitary checks on imports of hydrobiological resources, 
for which the national regulations are based on the OIE's Aquatic Animal Health Code.  Imports of 
such products must be accompanied by a sanitary certificate issued by the country of export.104  
SERNAPESCA recognizes the test results and certifi cates issued by Austra lia (Tasmania), Canada 
(New Brunswick), Denmark, Scotland, the United St ates (Washington and Maine), Finland, Iceland, 
Norway and the Republic of Ireland;  imports fro m other countries must be placed in quarantine. 
133. Compliance with sanitary and phytosanitary regulat ions is verified at the border.  The SAG 
has 32 permanent sanitary and phytosanitary inspect ion points at border crossings.  The authorities 
utilize private entities to assess conformity, includi ng veterinary surgeons, certification bodies and 
analytical and testing laboratories duly accredited by the SAG.  The requirements and criteria for accreditation, together with lists of accredited third parties, appear on the SAG's website.  The State 
pays the cost of inspection unless it is a question of mechanisms to ensure quality and safety, good 
practices and certification for export or fumigation, in which case the private sector has to bear the 
cost. 
134. Resolution No. 1.150 of 2000 lays down the procedure by which Chile recognizes that a 
country or zone is free of disease.  This status h as to be consistent with the recommendations of the 
OIE's International Animal Health Code and notified to the OIE prior to the request for recognition by 
                                                     
 
102 Defined in Decrees No. 156 of 1998 and No. 92 of 1999. 
103 Article 94 of the Sanitary Code (DFL No. 725). 
104 Article 11 of the General Law on Fisheries and Aquaculture (No. 18.892 of 1989) and Article 11 of 
the Regulations on procedures for importing hydrobiological species (DS Minecon No. 96-96). Chile WT/TPR/S/220 
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  Chile.  Recognition is based on an assessment of th e public veterinary services in the country of 
export, the available health information and the in spection and monitoring measures, which must be 
verified on the spot.  Chile has actively promoted the principle of regionalization at the WTO.  At the SPS Committee meeting in June 2008, Chile announced that it had recognized th e entire territory of 
the United States (with the exception of Arkansas) as free of avian influenza.  Chile also stated that it 
had recognized the Brazilian states of Paraná, Sa nta Catarina and São Paulo as free of Newcastle 
disease.
105 
135. The SAG is responsible for determining rul es and procedures for the import and release of 
genetically modified organisms (GMOs), subject to  special criteria.  The Technical Committee on 
GMOs, created in 2005106 has the task of advising the National Director of the SAG in this respect.  
Resolution No. 1.523 of 2001 lays down the rul es for importing and releasing modified live plant 
organisms for propagation into the environment.  Transgenic seeds may be imported for the purposes 
of multiplication and subsequent exportation, but th eir import for marketing purposes, industrial use 
or consumption on the domestic market is not auth orized.  An import application has to be submitted 
to the SAG before importing any transgenic materi al.  The authorization is granted after a risk 
analysis has been conducted and a favourable report has been receiv ed from the competent authority 
in the country of origin stating that introduction of the material into the environment in the said 
country has had no negative effects.107 
136. In addition, Resolution No. 3.970 of 1997 author izes the use of transgenic maize grain for 
consumption in animal feed.  Authorization is only given for biotechnological events that have 
received approval for animal and human consumption in  the country of origin and/or another country.  
Regulations on processed products containing GMOs are currently under discussion. 
137. In accordance with the sanitary regulations on food (Article 279), it is not allowed to market 
meat, entrails and animal by-products containing  non-endogenous hormone residues or substances 
with a hormonal effect if they exceed the limits se t by the Ministry of Health on the basis of the 
corresponding Codex technical standard. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures, documentation and registration 
138. The formalities and documents required for expor t transactions are specified in the Customs 
Ordinance (Decree with Force of Law No. 30 of 2004) and are regulated in Chapter IV of the 
Compendium of Customs Regulations (Resolution No. 1.300 of 2006). 
139. Exporters of goods must submit to the National Customs Service, thr ough a customs agent, 
the Documento Único de Salida - Aceptación a Trámite  - DUS-AT (single export document - 
acceptance for processing), which must contain all the information required.108  In addition to the 
DUS-AT, the mandate given to the customs agent must  be submitted, together with the shipping note 
or instructions, the transport and freight documen ts, a copy of the commercial invoice issued (except 
                                                      
105 WTO document G/SPS/R/51 of 27 August 2008. 
106 Resolution No. 6.966 of 2005. 
107 Article 4 of Resolution No. 1.523. 
108 Name of the shipping agent or exporter, address, municipality, customs post, port of loading, type of 
cargo, means of transport, code of the region of origin, port of unloading, country of destination, name of the 
transport company, name of the issuer, name of the ship, number of the voyage, authorizations, volume of the 
goods, f.o.b. value, gross weight, type and quantity of containers, inter alia . WT/TPR/S/220 Trade Policy Review 
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  for goods whose f.o.b. value does not exceed US $2,000), as well as the necessary signatures and/or 
authorizations. 
140. The services of a customs agent are required for all exports whose f.o.b. value exceeds 
US$2,000, except if they are leaving free zones and in the special cases laid down in the Compendium 
of Customs Regulations.109 
141. The customs agent completes and forwards th e DUS electronically to the National Customs 
Service.  Once the DUS is accepted for processing, th is means that the goods have been submitted to 
Customs;  they are authorized to  enter the customs area (first zone) and be shipped abroad.  After 
Customs has accepted the DUS, the goods must be load ed within 25 calendar days from the date on 
which the DUS was accepted for processing.  The customs agent must certify that the goods have 
been shipped if they are being transported by sea or  by air and Customs at the border certifies this in 
the case of land or rail transport. 
142. Exports may be subject to physical inspection or verification of documents.  In 2007, 31 per 
cent of the DUS were selected using filters, 33 pe r cent manually, and the remainder were selected at 
random. 
143. There is no register of exporters, although exporters that have exported goods for an 
f.o.b. value of US$50 million or more annually mu st inform the Central Bank, as required by the 
provisions in Chapter IV of the Compendium of Fo reign Exchange Regulations of the Central Bank of 
Chile. 
(ii) Export taxes and duties 
144. Pursuant to the Customs Ordinance (Article  112), the export of goods from Chile is not 
subject to duties. 
(iii) Export prohibitions and restrictions and licensing regimes 
145. The Constitutional Organic Law on the Central Ba nk of Chile provides that all goods may be 
freely exported provided that they comply with the legal and regulatory provisions in force.110  This 
Law also prohibits the use of quotas for exports.  Consequently, Chile has no export quotas and no 
export licensing regime. 
146. In conformity with its domestic legislation or  international agreements, Chile does prohibit or 
control the export of certain products.  Among the products which may not be exported are 
anthropological, archaeological, ethnic, historical and palaeontological items and articles;  pehuen  or 
Chilean pine (araucaria araucana );  and psychotropic substances.  There is also a ban on exports of 
ozone-depleting substances and new or used produ cts containing substances controlled under the 
Montreal Protocol (Annexes A, B and Group II of Annex C) to countries that are not parties to that Protocol.
111 
147. The export of goods for which trade is regulated  by CITES is also prohibited or requires an 
export permit.  An export permit is necessary for products listed in CITES Appendices I, II and III, 
                                                      
109 Compendium of Customs Regulations, Chapter IV, paragraph 2.1.2. 
110 Law No. 18.840 published on 10 October 1989. 
111 Law No. 20.096 establishing control mechanisms for ozone-depleting substances and 
Decree No. 37, published on 23 March 2006 and 11 September 2007, respectively. Chile WT/TPR/S/220 
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  and in the case of forest flora this is granted by the Corporación Nacional Forestal - CONAF 
(National Forest Corporation), while for non-forest species and fauna, it is issued by SAG, and for marine species (hydrobiological fauna) by SERNAPESCA. 
148. Endorsements and authorizations are required for the export of some products such as 
firearms, ammunition, explosives, inflammable an d asphyxiating chemical substances, radioactive 
substances, plant products, wild fauna specimens, fi sheries and seafood produc ts (crabs, prawns and 
abalone), alga gracilaria, certified bean seed s and works by Chilean and foreign artists.
112 
(iv) Tariff and tax concessions 
149. Chile has several export promotion progra mmes which currently consist essentially of 
administrative facilities for the payment and reimbursement of customs duties and VAT.  During the 
period under review, Chile phased out those elements of some of these programmes that constituted 
export subsidies according to the SCM Agreement. 
150. Chile's incentive programmes to promote exports are as follows:  (a) a general scheme for the 
reimbursement of customs duties;  (b) a simplif ied scheme of reimburseme nt for minor exports;  
(c) deferred payment of customs duties and tax credits for capital goods;  (d) a system of temporary 
admission for inward processing;  and (e) recovery of VAT.  Programmes (b) and (c) were notified to 
the WTO as providing subsidies113 and were subsequently amended to bring them into conformity 
with Chile's multilateral commitments.  Conse quently, neither programme now appears in the 
notifications of subsidies submitted by Chile.114 
151. Other programmes notified by Chile under the SCM Agreement consist of tax credits for 
investment in certain provinces;  tax exemptions in  free zones;  a regional promotion and development 
fund;  and tax and tariff concessions under the Motor Vehicle Statute.115  The basic objective of the 
first three programmes is regional development and they  are described in section 4(iii) of this chapter.  
In addition, Law No. 19.912 of 4 November 2003 fo rmally ended the tariff and tax concessions under 
the Motor Vehicle Statute, which had been gran ted subject to local content and trade balance 
requirements.  In fact, some of these concessions were abolished in December 1998 and others in 
February 2003.116 
(a) General reimbursement of customs duties 
152. On the basis of Law No. 18.708, published on 13 May 1988, Chile has a general scheme for 
the reimbursement of customs duties paid on the import of raw materials, semi-processed products 
and parts and components incorporated or consum ed in the production of goods exported.  This 
concession is also available for imported inputs inco rporated or consumed in the manufacture of 
domestic goods sold to free zones, provided that their c.i.f. value is 10 per cent or more of the value of 
the sale.  The inputs may have been imported either di rectly by the exporter or through third parties.  
Tariff surcharges or countervailing duties on imported inputs are not reimbursed.  According to data 
                                                      
112 The list of products which require endorsement or authorization before they can be exported can be 
found in Annex 40 to the Compendium of Customs Regulations. 
113 WTO documents G/SCM/N/2/CHL of 2 May 1995 and G/SCM/N/2/CHL/Suppl.1 of 
16 October 1995. 
114 WTO document G/SCM/N/125/CHL of 24 November 2008. 
115 WTO document G/SCM/95/CHL of 24 March 2004. 
116 For a description of the concessions granted u nder the Motor Vehicle Statute, see WTO (2003), 
Chapter III(3)(vii). WT/TPR/S/220 Trade Policy Review 
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  provided by the authorities, between January 20 03 and March 2009, refunds paid out under this 
scheme amounted to US$324.4 million. 
(b) Simplified scheme of reimbursement  for non-traditional minor exports 
153. Law No. 18.480 of 19 December 1985 established a simplified scheme of reimbursement for 
minor exports of non-traditional goods .  Originally, the rate of reimbursement was determined as a 
percentage of the f.o.b. value of the goods expor ted (with a ceiling of 10 per cent), so it might exceed 
the duty effectively paid, and in addition a mi nimum 50 per cent content of Chilean inputs was 
required.  The maximum value of exports elig ible for the reimbursement scheme was updated 
annually and goods exported in the previous cale ndar year that exceeded the amounts determined 
were included in a list of items excluded.  Law No. 19.589, published on 14 November 1998, 
amended Law No. 18.480 to bring it into line with  the provisions of the SCM Agreement, by 
gradually lowering the percentage of the re imbursement and amending the requirements for 
eligibility. 
154. As a result, since 1 January 2003, exporters ha ve been given a flat rate reimbursement of 
3 per cent of the f.o.b. value of the goods exported.   Furthermore, the reimbursement is only granted 
for exports of non-traditional products (i.e. those th at do not appear on the list of excluded items 
published annually by the Ministry of the Economy)  which contain at least 50 per cent of imported 
inputs in value terms.  In order to qualify for reimbursement, the maximum amount exported by tariff 
heading must be equal to or less than the ceiling publ ished yearly by the Ministry of the Economy;  in 
2009, this was U$29.47 million.  Bearing in mind that  the general tariff is 6 per cent for almost all 
imports and that the reimbursement is only grante d for exports of goods with at least 50 per cent of 
imported inputs, this flat rate of 3 per cent woul d in fact correspond to customs duties on the inputs 
imported. 
155. The authorities have indicated that the amendm ents to the simplified reimbursement scheme 
have enabled the amounts paid out by the tax authorities to be reduced from US$199 million in 1998 to US$23.1 million in 2003 and US$2.1 million in 2008. 
(c) Deferred payment of customs levies and tax credits for capital goods 
156. Law No. 18.634 of 5 August 1987 and its im plementing Regulations created three 
mechanisms to promote technological modernizati on and investment in capital goods.  The first 
allowed the deferred payment of customs duties on imports of capital goods for up to a maximum of seven years, payable in three instalments.   Under the second mechanism, purchasers of 
Chilean-manufactured capital goods were entitled to a tax credit equivalent to 73 per cent of the 
customs duty on the net invoice value of the goods, which had to be repaid to the tax authorities 
within a maximum of seven years.  In both cases, the debt owing to the tax authorities was subject to a 
market interest rate established by the Central Bank.   Under the third mechanism, all or some of the 
amount owing as a result of deferred payment of tari ffs or tax credits when the exporter used capital 
goods to produce goods for export was cancelled.  Th e reduction or cancellation of the debt depended 
on the percentage exported in comparison with the company's total sales.
117 
157. Law No. 19.589 (November 1998) abolished cance llation of the debt dependent on exports, 
providing for a transitional regime that ended on 1 January 2003.  Since then, the import of capital 
goods or the purchase of Chilean-manufactured capital goods only gives entitlement to deferred 
payment or a tax credit, whichever applies. 
                                                      
117 For further information, see WTO (2003), Chapter III(3)(iv). Chile WT/TPR/S/220 
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  158. The capital goods eligible are those to be found on a list drawn up annually by the Ministry of 
Finance and are subject to a minimum value determined by law and updated yearly.  In December 2008, this minimum value was US$5,525. 26 (c.i.f. in the case of imported goods and net 
invoice value for Chilean goods).  In the case of  vehicles, the minimum value was US$6,998.65. 
159. According to the authorities, the reduction or  cancellation of debts as a result of deferred 
payment of customs duties fell from US$211 million in 2003 to US$398,000 in 2007, and ceased altogether in 2008.  The benef its consisting of tax credits amount ed to US$18.5 million in 2003, 
falling to US$981,000 in 2006,  and also ceased in 2007. 
160. In addition, Law No. 20.269, published on 27 June 2008, fixed customs duties on imports of 
capital goods classified in Law No. 18.634 at 0 per cen t, which means that the benefits provided for 
under the Law have for the most part been eliminat ed and replaced by the zero rate tariff, the only 
benefit remaining being the tax credit for the purchase of Chilean-manufactured capital goods.
118 
(d) Temporary admission for inward processing 
161. Another mechanism intended to  facilitate exporting is the Admisión Temporal para el 
Perfeccionamiento Activo  - DATPA (temporary admission for inward processing) regime, established 
by Ministry of Finance Decree No. 473 of 28 August 2003.  The DATPA consists of a special form of 
warehousing that allows companies producing goods for export to enter raw materials, semi-processed 
products and parts and components from abroad wit hout paying the import duties and other levies or 
VAT.  The beneficiaries have 180 days in which to  carry out the authorized processing, working or 
other finishing processes and export the final goods obtained, a duration which may be extended by 
the National Director of Customs, where justified.   The authorities have indicated that in 2008, 
21 companies took advantage of the DATPA and regi stered 1,158 operations for a c.i.f. value of 
US$225.8 million. 
(e) Recovery of VAT 
162. Pursuant to Decree Law No. 825 (31 December  1974) and Supreme Decree No. 348 of the 
Ministry of the Economy (31 December 1975), expo rters of products and services may recover the 
VAT paid on the purchase of goods, inputs or services required for their exports.  They also have the 
right to recover the VAT paid on the import of goods for these purposes.  Exporters of services may only be entitled to this benefit if they provide servi ces to persons without any domicile or residence in 
Chile, provided that the service is deemed to be an export according to the resolution issued by the 
National Customs Service.
119 
(v) Export financing and guarantees 
163. Chile has several financing and guarantee progra mmes to assist exporters in obtaining credit.  
For the most part, these are intended for MSMEs;  one of them is subject to compliance with national content requirements. 
                                                     
 
118 For further information, see:  http://www. portalcomercioexterior. cl/files/LEY_20269.pdf 
119 The services deemed to be ex ports are listed in Exempt Resolution No. 002511 of 16 May 2007.  
A request may be made to include other services in the list following a procedure carried out with the National 
Customs Service. WT/TPR/S/220 Trade Policy Review 
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  164. CORFO, which is a State agency, provides Ch ilean companies with support and runs two 
export credit programmes:  "Financing for Chilean  exporters" and "Financing for foreign buyers".120  
In both of these programmes, CORFO acts as a second-tier bank, chan nelling funds through 
commercial banks, which evaluate the projects and lay down specific terms for the credit.  The 
authorities consider that the interest rates applied in these programmes are not on preferential terms.  
CORFO is fully liable for the risk of failure to reimburse the credit. 
165. The "Financing for Chilean exporters" programme  (known as B22) is a credit intended for 
companies established in Chile with annual sales of up to US$30 million (excluding VAT) that are 
direct or indirect exporters of non-traditional goods and services (all goods except cellulose, copper, 
fishmeal, fruit and iron).  It finances the purchase of inputs for production, investment, working 
capital, the cost of creating infrastructures for ma rketing abroad, as well as pre- and post-shipment 
loans.  The credit is for a maximum of US$3 million and may be expressed in dollars or in Development Units (UF)
121, at a fixed or variable interest rate and for a period not exceeding 
eight years, including grace periods of up to 18 months for repaying the capital (see Table III.4). 
166. The "Financing for foreign buyers" programme  (B21) provides long-term financing for 
purchasing Chilean goods or services abroad.  In order to be entitled to this credit, Chilean companies 
exporting capital goods, durable cons umer goods and engineering and consulting services with sales 
exceeding US$30 million, irrespective of their si ze, require prior approval from CORFO.  One 
criterion for eligibility is that the goods exported by  the Chilean company must have national content 
of no less than 40 per cent, including labour and comp onents.  Exports of services must be confirmed 
by the National Customs Service.  The credits are granted for a maximum amount of US$3 million, 
for terms ranging from one to 10 years, including grace periods of up to 30 months for repayment of 
the capital, and are expressed in Unite d States dollars with fixed or variable interest rates (Table III.5). 
167. According to data provided by the authorities,  in 2008 the amount of credit approved under 
the Financing for Chilean exporters programme am ounted to US$2 million, while under the Financing 
for foreign buyers programme it was US$2.2 million. 
168. CORFO also has a programme to cover or guarantee bank loans granted to exporters 
(COBEX) against the risk of non-payment.  Exporting companies with annual sales of up to US$30 million are eligible for this guarantee, together  with those companies which, within this sales 
limit and even if they have not exported goods, are able to show that they have firm orders from 
foreign buyers.  The guarantee covers 50 per cent of the outstanding capital of the loan with a 
maximum ceiling of US$5 million. 
Table III.5 
Interest rates:  lines of financing for exports - CORFO 
Financing for Chilean exporters (B22)a Financing for foreign buyers (B21)b 
Interest rates in UF Interest rates in US$ Interest rates in US$ Term (years)  
Fixed Floating Fixed Floating Fixed Floating 
1 1.70 n.a. 3.40 Lib +1.90 4.15 Lib +2.30 
2 1.80 n.a.  3.60 Lib +1.95 4.15 Lib +2.35 
                                                      
120 Details of the credits and guarantees offered by CORFO, as well as other programmes, can be 
viewed at:  http://www.corfo.cl/lineas_de _apoyo 
121 The UF is a unit of measure expressed in Chilean pesos and readjusted daily on the basis of 
variations in the Consumer Price Index.  In the first ha lf of 2009, the average value of the UF was Ch$21,078, or 
US$35.9. Chile WT/TPR/S/220 
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  Financing for Chilean exporters (B22)a Financing for foreign buyers (B21)b 
Interest rates in UF Interest rates in US$ Interest rates in US$ Term (years)  
Fixed Floating Fixed Floating Fixed Floating 
3 1.90 n.a. 3.90 Lib +2.00 4.20 Lib +2.40 
4 1.95 n.a.  3.90 Lib +2.00 4.20 Lib +2.40 
5 2.00 n.a.  3.95 Lib +2.05 4.25 Lib +4.25 
6 2.05 n.a.  3.95 Lib +2.05 4.25 Lib +4.25 
7 2.10 n.a.  4.00 Lib +2.10 4.30 Lib +4.30 
8 2.15 n.a.  4.00 Lib +2.10 4.30 Lib +4.30 
9 2.20 n.a.  4.04 n.a. 4.35 Lib +4.35 
10 2.25 n.a.  4.05 n.a. 4.35 Lib +4.35 
n.a. Not applicable. 
a Lines of financing through local banks;  rate s applicable from 15 April 2009 to 15 July 2009. 
b Direct agreements with foreign banks; rates applicable from  15 April 2009 to 15 July 2009. 
Source :  Chilean Economic Development Agency (CORFO). 
169. At the request of banks, CORFO approves a line of cover for each exporter;  approval is 
subject to payment by the bank of an annual commission of 0.75 per cent on the amount of the line of cover.  The minimum period of cover is 30 days with a maximum of one year, which may be extended 
for one further year.  In June 2009, m oneys placed under the COBEX Fund amounted to 
US$92 million.  According to the legal provisions in  force, the amount of cover may reach ten times 
the size of the Fund.  The authorities have indicated  that, by lessening the risks for banks, the COBEX 
cover allows access to financing by small enterpri ses and exporters without experience, which would 
otherwise find it difficult to obtain financing. 
170. The Fondo de Garantía para Pequeños Empresarios  - FOGAPE (Small Business Credit 
Guarantee Fund), which is administered by BancoEstado, gives credit guarantees to micro and small 
entrepreneurs and exporters that do not have sufficient guarantees to submit financing applications to 
banks.  The types of financing offered by FOGA PE include credit, leasing transactions and other 
financing mechanisms granted by financial ins titutions.  BancoEstado auctions guarantee rights 
among eligible institutions, which may bid for th ese rights and use them to grant financing to 
micro/small businesses and exporters.  Under the amendments introduced in 2007 by the Decree Law 
on FOGAPE
122, agricultural and non-agricultural enterprises with annual net sales of up to 25,000 UF 
(US$897,500) and exporters with annual sales abroad averaging up to US$16,700,000 f.o.b. value, over the two previous calendar years, may have access to the Fund. 
171. FOGAPE covers up to 80 per cent of the debit balance of companies for loans of less than 
3,000 UF (approximately US$107,700 in November 2008) and up to 50 per cent for credits of 
3,000 UF to 5,000 UF (US$107,700 to US$179,500).  The maximum term of the guarantee is 
ten years.  Beneficiaries have to pay commission,  which may not exceed 2 per cent per year of the 
amount guaranteed.
123  According to data from FOGAPE, in 2 007 17 financial institu tions participated 
in the Fund, carrying out 24,000 operations invol ving credit guarantees in excess of 13 million UF 
                                                      
122 Law No. 20.2002 of 3 August 2007, which amended Decree Law No. 3.472 of 1980. 
123 For further details, view the FOGAPE website at:  http://www .fogape.cl/portal/ contenido.asp WT/TPR/S/220 Trade Policy Review 
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  (approximately US$466.7 million).  In  terms of the total financing granted, the most common sector 
was trade (33.6 per cent), followed by services (26.3 per cent).124 
(vi) Export promotion 
172. The government body responsible for promoting exports is the Dirección de Promoción de 
las Exportaciones  - ProChile (Directorate of Export Promotion)  of the Ministry of Foreign Affairs.  
Its task is to boost the number of exporting ente rprises and of products exported, as well as market 
diversification.  ProChile's activities focus on three basic areas:  helping small- and medium-sized enterprises to gain an international dimension, taki ng advantage of the opportunities afforded by the 
trade agreements concluded by Chile, and governme nt-private sector cooperation.  ProChile has 
56 trade offices in the major international mark ets and 15 offices throughout Chile responsible for 
identifying and promoting the development of Chile's export offer. 
173. ProChile has several export promotion programmes,  financed jointly with the private sector.  
These include the Fund to Promote Non-Forestry or Agricultural Exports (industry, products from the sea and services), Forestry and Agricultural C ooperation, Cooperation fo r Internationalizing 
Small-Scale Family Farming, the Business Coaching Programme and PyMEXPORTA. 
174. In 2008, the budget allocated to ProChile was US$33 million, broken down by programme as 
follows:  Fund to Promote Non-Forestry or Agri cultural Exports (27.4 per cent), international 
dissemination (24.2 per cent), Forestry and Agricultural Cooperation (44.2 per cent) and 
PyMEXPORTA (4 per cent). 
175. ProChile also makes advisory services, trade promotion activities and information technology 
available to exporters.  Its activities include help ing and training exporters, organizing seminars on 
exports, support for participation by Chilean exporte rs in international fairs and missions, as well as 
information on tariffs and regulations in the destin ation markets, and the conduct of market surveys 
and profiles on request.
125 
176. CORFO also has a foreign market survey a nd research programme under which it finances 
the implementation of projects that enable exporting companies to improve the diversification of their 
products and integrate into external marketing ch ains, as well as to identify innovation opportunities 
and needs as a result of market surveys.126  The support consists of a subsidy for up to 60 per cent of 
the total amount of the project.  The resources are allocated through a competition and in 2008 
12 projects were approved for a total amount of US$8 02,316.  In addition, CORFO offers services to 
help Chilean companies make contact with potenti al foreign buyers, and provides information on 
prices and assistance with packag ing, financing and promotion. 
177. The private sector also plays a role in export promotion activities through organizations such 
as the Asociación de Exportadores de Manufacturas  - ASEXMA (Association of Manufacturing 
Exporters) and the Asociación de Exportadores de Chile  - ASOEX (Association of Chilean Exporters) 
and Chilean Wines.  ASEXMA is an association th at brings together manufacturing exporters in 
various sectors, providing support for their manageme nt and trade diversification through courses and 
seminars, business trips, government lobbying an d access to CORFO resources.  The ASOEX brings 
                                                      
124 FOGAPE online information.  Viewed at:  http://www.fogape.cl/portal/Contenido.asp?CodCanal= 
177&TipoCanal=A 
125 For further information, view the ProChile website at:  http:/www.prochile.cl 
126 Further details can be obtained from the CORFO website at:  http://www.corfo.cl Chile WT/TPR/S/220 
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  together exporters of fresh fruit and vegetables;  its tasks include support for opening up new markets 
for these products, training its members and disseminating technical and trade information, inter alia . 
(4) OTHER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Establishment and taxation of enterprises 
178. A trading enterprise can be set up in Chile in sev eral legal forms:  a public limited company;  
a limited liability company;  a general partnership;  a limited partnership;  a joint stock company;  an 
individual limited liability company;   an individual business and an association or joint venture.  The 
most common forms for a trading company are a public limited company or a limited liability company. 
179. Law No. 18.046 of 1981 (amended in 1999) provid es that a public limited company is a legal 
person composed of shareholders who pool their cap ital and whose liability is limited to the amount 
of their individual contributions.  There are two types of public limited company:  open and closed.  The former are companies that meet one of the follo wing criteria:  their shares are offered for sale to 
the public and quoted on the stock exchange;  they ha ve 500 or more shareholde rs or at least 10 per 
cent of the paid-up capital belongs to over 100 shar eholders.  All other public limited companies are 
deemed to be closed.  Open public limited companies are subject to inspection by the 
Superintendencia de Valores y Seguros  (Supervisory Authority for Securities and Insurance) and must 
be registered in the National Securities Register.
127  In the case of a limited liability company, the 
liability of each partner is limited to the amount of cap ital it has paid in or to a larger amount if this is 
specified in the company's articles of incorporati on.  There is no minimum capital requirement for 
setting up such a company;  it may have two to 50 pa rtners, but if this amount is exceeded it becomes 
a general partnership. 
180. Foreign companies can operate in Chile through a representative, agency or subsidiary, or set 
up in Chile in one of the aforementioned legal forms. 
181. Companies are set up by means of public articles of incorporation.  An extract from these 
must be registered in the Commercial Register for the place where the company is domiciled and must 
be published in Chile's Official Journal.  Both th e registration and the publication must take place 
within 60 days from the date of incorporation.  Notarial and registration fees depend on the company's 
level of taxation, but normally represent some 2 per cent of the capital. 
182. Following registration in the Commercial Register, the company set up must complete the 
following formalities:  register in the Registro Rol Único Tributario  - RUT (Taxpayers' Register) at 
the Unidad del Servicio de Impuestos Internos  - SII (Internal Taxation Service Unit) of the place 
where the person concerned has his domicile and notif y this Unit of the commencement of activities;  
await verification of the domicile by the SII in order to obtain authorization for the taxation 
documentation and the books of account, or, in the case of electronic documentation, obtain authorization from the SII;  obtain a business licence from the competent municipal authorities;  
register for social security against occupational accidents and diseases;  and, where applicable, obtain 
sanitary authorization from the competent health service.  Depending on the type of activity, other authorizations may be required from the competent government services. 
183. A World Bank study of competitiveness indicators sh ows that, in 2008, an average of 27 days 
was required to set up a company or business in Chile, at  an average cost equivalent to 7.5 per cent of 
                                                     
 
127 Article 2 of Law No. 18.046. WT/TPR/S/220 Trade Policy Review 
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  per capita gross national income.128  Although Chile is still the leading country in Latin America as 
regards the competitiveness of its regulatory busi ness framework, its position  in the international 
ranking drawn up by the World Bank has fallen in recent years, putting it in 40th place (out of a total 
of 181 countries) in 2008.129 
184. In Chile, tax is levied at the national level and there are no significant municipal, provincial or 
regional taxes, except for the busin ess licence.  The main taxes on co mpanies are income tax (which 
includes a tax on dividends), the tax on royalty paym ents, the tax on interest, and property tax.  The 
income of companies set up in Chile is subject to in come tax, irrespective of the source of the income.  
Subsidiaries of foreign companies only pay inco me tax on their income from Chilean sources.  
Services supplied abroad to a Chilean resident are taxed. 
185. Pursuant to the Income Tax Law130, "capital income" (as distinct from "earned income") is 
subject to first category tax, which is imposed  on companies whose income comes from industry, 
trade, mining, property or other activities that involve the use of capital.  Since 2004, the first category tax has been levied at a flat rate of 17 per cent.  This tax is chargeable against the supplementary 
overall tax or the additional tax, as applicable.  The supplementary overall tax is a graduated tax 
(ranging from 0 to 40 per cent) applied to all inco me of natural persons re sident in Chile.  The 
additional tax, whose general rate is 35 per cen t, is imposed on the capital income from Chilean 
sources of natural or legal persons not resident in Chile.  This tax applies to the profits earned by 
companies which have non-resident shareholders or partners when these profits are withdrawn, 
distributed as dividends or remitted abroad. 
186. In general terms, foreign companies operating in Chile are subject to the first category tax 
(17 per cent) and the additional tax (35 per cent) on the amount of the profits distributed or remitted 
abroad, but they are entitled to a credit of 17 per cent against the additional tax.  Alternatively, foreign 
companies which invest under DL No. 600 may opt for a clause that allows them to pay a flat tax rate of 42 per cent for a period of 10 years (which may be extended up to 20 years for projects exceeding US$50 million, see also Chapter II(3)).  Since January  2006, there has been a special tax on mining 
("mining royalty") which is added to income tax (see Chapter IV(4)). 
187. Pursuant to tax legislation, all royalties paid ab road are subject to a withholding tax of 30 per 
cent, except for payments to persons residing in co untries with which Chile has signed agreements to 
avoid double taxation (see Chapter II(3)(ii)).  Since January 2007, some royalties have benefited from 
a reduced rate of 15 per cent, for example, royalti es related to the use of patents, utility models, 
industrial designs, layout designs of integrated circ uits, new plant varieties and computer programs.  
In general, interest on loans taken out abroad is subject to a withholding tax of 35 per cent;  however, 
if the interest is paid to foreign banks or financial institutions, the rate is 4 per cent. 
188. There is a 1.2 per cent land tax on non-agricultu ral real estate based on valuation of the 
property and the amount collected goes to the munici pal authorities.  A surcharge of 100 per cent on 
the rate in effect applies if the property is locat ed in urban areas on non-built-up sites or has been 
abandoned.  A number of transactions and documents  are subject to a stamp tax.  These include 
cheques, transfers or payments connected with payment orders, charges or transfers from current 
accounts in banks, as well as loans of money and docum ents covering loan transactions such as bills 
of exchange and issue of bonds.  The stamp tax was temporarily discontinued in 2009 for all loan 
                                                     
 
128 World Bank (2008). 
129 Ibid. 
130 Decree Law No. 824 of 1974. Chile WT/TPR/S/220 
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  transactions and its reduction to 0.6 per cent of th e capital has been announced for the first half of 
2010.131 
(ii) Competition policy and price control 
189. During the period under review, Chile revised its  regulatory and institutional framework for 
competition with the aim of promoting efficient market s.  One of the most im portant changes has been 
the creation of the Tribunal de Defensa de la Libre Competencia  - TDLC (Competition Tribunal), 
intended to give the system greater autonomy.  Additional amendments to the regulations are 
foreseen, particularly to strengthen the powers of th e investigating authority.  The main objective of 
Chile's competition policy is to prevent abuse of a dominant market position, but not concentration as 
such. 
190. Decree Law No. 211 is the principal legal instru ment dealing exclusively with competition in 
Chile.  It was published in 1973 but has been significantly amended over the years132, the most 
important amendment having been introduced by La w No. 19.911 of November 2003.  Its current text 
was revised, coordinated and consolidated by Decree with Force of Law No. 1 of 2005 of the Ministry 
of the Economy133, hereinafter the Competition Law. 
191. The aim of this Law is to promote and protect free competition in the market.  It defines as an 
anti-competitive offence "… any act or contract that prevents, restricts or hinders free competition, or 
tends to produce such effects", in cluding practices such as price fixing, limiting production, assigning 
market quotas or zones, abuse of a dominant pos ition and predatory or unfair competition practices 
whose object is to attain, maintain or increase a dominant position.134 
192. Market concentration is not considered an an ti-competitive practice in itself, so mergers do 
not require prior notification and no limits are set on market share.  In connection with the present 
Review, the authorities have indicated that since th e entry into force of the Competition Law, parties 
wishing to merge have always consulted the TDLC  in advance, even though there is no notification 
obligation in this regard. 
193. The Law applies to all Chilean or foreign indivi duals or companies, and to the State itself.  
There is no exclusion whatsoever as to the branch of  economic activity and it applies to foreign trade 
activities to the extent that they affect competition in the Chilean market.  The State may exercise a 
monopoly over certain activities on the basis of special laws, but may not give any form of monopolistic control to private enterpri ses, unless a special law so authorizes.
135 
194. The Fiscalía Nacional Económica  - FNE (National Economic Pros ecutor's Office), created by 
Decree Law No. 211, is a decentralized governme nt service of the Executive responsible for 
safeguarding and promoting free competition.136  The FNE is headed by the National Economic 
Prosecutor, who must be a lawyer by profession and is appointed by the President of the Republic.  The main task of the FNE is to investigate any f act, act or contract that is contrary to economic 
                                                     
 
131 Law No. 20.326, enacted on 20 January 2009. 
132 The amendments were introduced by DL Nos. 2.760 and 2.879 of 1979;  DL No. 3.057 of 1980;  
and Laws No. 19.336 of 1994, No. 19.610 of 1999, No. 19.806 of 2002 and No. 19.911 of 2003. 
133 DFL No. 1 of 2005 may be viewed on the website of the National Economic Prosecutor's Office at:  
http://www.fne.cl/ 
134 Article 3 of DFL No. 1 of 2005. 
135 Article 4 of DFL No. 1 of 2005. 
136 Title III of DFL No. 1 of 2005. WT/TPR/S/220 Trade Policy Review 
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  competition in markets.  It may initiate investigations  at the request of a party or ex officio and may 
act as a party, representing the public interest in the ec onomic field, before the TDLC or courts of law.  
It may defend or contest rulings by the TDLC before  the Supreme Court of Justice.  Another task of 
the FNE is to ensure compliance with the decisi ons and opinions of the TDLC and the commissions 
that preceded it.  Moreover, in cases where it is  not party to the proceedings, the FNE draws up 
technical reports at the request of the TDLC. 137 
195. Law No. 19.911 (14 November 2003) introduced one of the major changes in the competition 
regulations by creating the TDLC, which replaced the former preventive commissions and the commission responsible for final decisions.  The TD LC is a special and independent collegiate court 
whose task is to prevent, remedy and penalize acts contrary to free competition.  It is composed of 
three lawyers and two economists, appointed by the President, the Supreme Court of Justice and the 
Council of the Central Bank, following a public competition.
 138  At the request of the FNE or of an 
interested party, the TDLC may rule on contentio us proceedings concerning acts or facts that may 
violate the Law and can adopt the necessary meas ures or penalties to prevent or remedy their 
anti-competitive effects, including the amendment or termination of contracts, the winding up of 
companies and the imposition of fines.  The TD LC may also be consulted in non-contentious 
proceedings regarding buy-outs and mergers.  It is also empowered to lay down general rules on 
competition and to propose amendments to legislation which it considers contrary to free competition.  
Appeals against decisions by the TDLC may be made to the Supreme Court of Justice. 
196. In recent years, the competition authorities ha ve undertaken several investigations into 
mergers and buy-outs, particularly in the transpor t, telecommunications, retail trade, electricity, 
financial services and health sectors.  In October 2006, the FNE published internal guidelines on the 
examination of horizontal concentr ation operations, which clarify the criteria to be used to examine 
mergers completed or planned, either at the request of  third parties (whether or not they are parties to 
the operation), the TDLC or ex officio.  The gu idelines have enhanced the legal certainty and 
transparency in this sphere, in addition to setti ng a maximum period of 60 days for examination of 
mergers by the FNE.  In March 2009, the TDLC issu ed Resolution No. 12, which defines the relevant 
information to be submitted in cases where mergers are examined.139 
197. In the context of this Review, the Chilean authorities indicated that the FNE had limited 
powers of investigation, particularly for investiga tions into cartels or other collusive practices, as 
cases are based on documents voluntarily submitted and on testimony and reports from experts.  This 
situation makes it difficult for the FNE to have acce ss to direct evidence to prove the effects of an 
unlawful act and, hence, violation of the Law.  Between 2004 and 2006, two penalty rulings by the 
TDLC were overturned and annulled by the Suprem e Court of Justice for insufficient evidence. 
198. In April 2009, the Congress approved a draft la w containing important amendments to the 
Competition Law in order to reinforce the FNE's i nvestigative powers and the independence of the 
TDLC.  The amendments in this draft include an  increase in maximum fines for offences;  the 
introduction of new powers to combat hard core car tels (the possibility of granting immunity or 
leniency to those who provide evidence on the exis tence of cartels and power to carry out raids, 
inter alia );  express authority for the TDLC to impose co rrective measures ex officio;  changes in the 
scope of offences;  measures to give the members of the TDLC greater independence;  procedural 
                                                      
137 Article 39 of DFL No. 1 of 2005. 
138 Articles 5 and 6 of DFL No. 1 of 2005. 
139 The guidelines, the activities of the Economic Pros ecutor's Office, and the case law and resolutions 
of the TDLC, may be viewed on the websites of the FNE (http://www.fne.cl) and the TDLC 
(http://www.tdlc.cl). Chile WT/TPR/S/220 
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  changes;  and amendments intended to increas e the autonomy and independence of the Economic 
Prosecutor's Office.  The reforms came into e ffect with the publication of Law No. 20.361 on 
13 July 2009. 
199. According to a recent study evaluating comp etition policies in APEC economies, Chile's 
experience shows how adequate institutional capacity  (the Government's capacity to draft and 
implement policies and recommendations that permit  and promote development of the private sector) 
can increase the effectiveness of competition policy a nd allow Chile to reach levels of competition on 
local markets similar to those seen in countries with higher incomes.140 
200. In a report published in 2003, the OECD gave  a positive evaluation of Chile's competition 
regime, in general terms, and made a series of recommendations to strengthen its regulatory and 
institutional framework.141  Most of the recommendations were incorporated in DFL No. 1 (2005), 
including the creation of the TDLC, the publication of internal guidelines for examining horizontal 
concentrations and public access to decisions by th e FNE and the TDLC.  The report noted that the 
Chilean authorities had been successful in im plementing competition policy in relation to 
infrastructure (telecommunications and electricity), but that their approach had been much more 
prudent in relation to other industrial sector s, and it therefore recommended more dynamic 
implementation of the law in those sectors;  the report suggested a revision of the policy on mergers 
and hard-core cartels.  The draft law approved by Congress in April 2009 incorporated several of the 
recommendations on the investigation of  hard core cartels, among others. 
201. Without prejudice to the competent authoriti es' powers for safeguarding free competition, 
some activities such as telecommunications, water supply, electricity distribution and financial 
services are subject to special regulations whic h contain provisions on competition, under the 
supervision of the relevant authorities:  the Unde rsecretariat of Telecommunications, the Supervisory 
Authority for Sanitary Services, the Supervisory Au thority for Electricity a nd Fuel, the Supervisory 
Authority for Banks and Financial Institutions a nd the Supervisory Authority for Securities and 
Insurance (see Chapter IV(7)). 
202. In February 2007, a law regulating unfair co mpetition was published (Law No. 20.169), with 
the aim of protecting competitors, consumers and, in general, any person affected by an act of unfair 
competition.  The Law defines as unfair competition conduct that is not covered by other legal 
provisions, including free-riding on the reputation of third parties, disseminating false information on 
the characteristics or price of goods and services offe red, defamation of third parties and the misuse of 
legal action in order to hamper the operations of a competitor.  Cases filed against such unlawful acts 
may take the form of action for cessation or prohib ition of the act, a declaratory ruling on the unfair 
act, the elimination of its effects and compensation for damage.  Such cases are heard by the civil courts, which forward their ruling to the Nationa l Economic Prosecutor, who may request the TDLC 
to impose a fine.  Unfair practices whose purpose is to attain, maintain or increase a dominant position 
are examined by the competition authorities. 
203. Chile's regulatory framework to protect co mpetition includes a number of cooperation 
agreements signed by the FNE with competition bodies in several countries
142, as well as provisions in 
                                                      
140 APEC (2008). 
141 OECD (2004). 
142 Brazil, Canada, Costa Rica and Mexico. WT/TPR/S/220 Trade Policy Review 
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  the RTAs signed by Chile.  Twelve of these agreements143 contain a chapter on competition matters, 
with varying degrees of detail and coverage. 
204. The Chilean State does not have any overall power to control the prices of goods and services, 
but nevertheless does so in respect of activities where it is deemed that there is a natural monopoly in 
order to avoid abuse of a dominan t position by private operators.  These sectors include local basic 
telephony, electricity, and drinking water and sewag e services.  The determination of rates for the 
basic telephony and electricity sectors is dealt with  in Chapter IV.  The Supervisory Authority for 
Sanitary Services sets the maximum rate that may be imposed by companies supplying drinking water 
and processing waste water.  The rates are calculated in such a way that the profitability of a company 
operating efficiently is equal to the cost of the capital on assets employed.144 
(iii) Incentives 
205. Chile has a large number of incentive progra mmes intended to achieve objectives such as 
promoting investment and employment in remote  or disadvantaged regions, the development of 
MSMEs, and the promotion of technological innovation, inter alia .  These incentives mainly consist 
of tax concessions, financing for investment and t echnological development, and support for business 
management. 
(a) Support for regional development 
206. As mentioned above (section (3)(iv)), Chile notified to the WTO as subsidies three 
programmes whose objective is regional development, namely, tax credits for investment in certain 
provinces, tax exemptions in free zones and the Fu nd for the Promotion and Development of Remote 
Areas.145  These programmes are described below. 
Tax credits 
207. With a view to promoting economic developmen t in the provinces of Arica and Parinacota, 
Decree with Force of Law No. 1 of the Minist ry of Finance (Arica Law) of September 2001146 grants 
tax credits to companies investing in these provinc es.  Investment projects amounting to more than 
2,000 UTM147 (around US$139,000148) to be used for economic activities in Arica and 
1,000 UTM (US$69,500) or more in Parinacota, are e ligible for a tax credit of 30 per cent of the value 
of fixed physical assets (buildings, machinery and eq uipment) in the province of Arica (40 per cent in 
the case of tourism projects), and 40 per cent in the pr ovince of Parinacota.  Taxpayers are eligible for 
this concession until 31 December 2011 and th e credits may be repaid up to 2034. 
208. Similarly, the Austral Plan (Law No. 19. 606 of March 1999) provides tax credits for 
investment in regions XI and XII (Aysén and Magalla nes) and in the province of Palena in the region 
                                                      
143 These are the agreements with MERCOSUR, Canada, Mexi co, Central America, the 
European Union, the United States of America, EFTA, th e Republic of Korea, the P-4, Japan, Australia and 
Peru. 
144 For further information on how rates are set, see the website of the Supervisory Authority for 
Sanitary Services at:  http://w ww.siss.cl/article-4336.html 
145 WTO document G/SCM/N/155/CHL of 24 November 2008. 
146 DFL No. 1 of the Ministry of Finance of 2001 contains the revised, coordinated and consolidated 
text of Law No. 19.420 of 1995, as amended by Laws No. 19.478 of 1996 and No. 19.669 of 2000. 
147 Law No. 20.268 (24 June 2008) amended DFL No. 1 and for 2008 and 2009 set a minimum amount 
for investment projects of 1,000 UTM, a figure of 1,500 UTM for 2010 and 2,000 UTM for 2011. 
148 In June 2009, the UTM was worth Ch$36,792, some US$69.5. Chile WT/TPR/S/220 
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  of Los Lagos.  Investment projects amounting to a minimum of 2,000 UTM (some US$123,000)149 in 
the transport, energy, tourism, property, manufact uring, agriculture, aquaculture and research and 
development (R&D) sectors are eligible for a tax credit of up to 32 per cent of the value of fixed 
physical assets.  The credits are granted until 2011 a nd may be repaid up to 2030.  According to data 
provided by the authorities, in 2008 tax credits granted for investment under the Austral Plan 
amounted to Ch$73.996 billion (US$126 million), while  those granted under the Arica Law amounted 
to Ch$14.097 billion (US$24 million). 
209. There are also special tax and tariff incentiv es for activities in Tierra del Fuego and in 
Antarctic territory (Law No. 19.149 ).  These are available to mining, manufacturing, transport, fishing 
and tourism companies producing goods or services that include a minimum of 25 per cent, by value, 
of local labour and inputs.  The concessions, which are planned to remain in force until 2035 (or 2036 
in some zones), include exemption from first cate gory income tax, VAT on sales and import duties.  
There is an additional credit equivalent to 20 per cent of the value of sales made by these companies 
in the rest of Chile.150  It is estimated that the cost of tax and tariff incentives under these programmes 
in 2009 will be Ch$1.18 billion (US$2 million).151 
Free zones 
210. Ministry of Finance Decree No. 341 of 1997 establishes two free zones:  one in the port of 
Iquique in the far north of Chile and the other in P unta Arenas in the south.  The revised, coordinated 
and consolidated text of the Decree can be found in  DFL No. 2 of the Ministry of Finance, published 
on 10 August 2001.152  Any type of activity can be carried out in the free zones of Iquique and 
Punta Arenas, but mining, fishing and financial serv ices are not eligible for the concessions offered 
there. 
211. Management companies and firms setting up in the free zones are exempt from payment of 
tariffs, VAT and other charges on im ports, first category income ta x under the Income Tax Law, and 
payment of VAT on goods and services for a ll their operations within the zone. 
212. Goods imported into a free zone may remain in a warehouse, be processed, finished or 
marketed within the zone, without any restrictions , and may be re-exported without paying tax.  Sales 
or transfers of goods from a free zone to Chilean customs territory, however, are subject to tariffs, VAT and other import duties from the moment they leave the zone
153, unless the goods are eligible for 
tariff exemption under a free-trade agreement.  Th ere are no limits on the percentage of production 
which companies in free zones may export to Chil ean customs territory and there are no domestic 
content requirements. 
213. Goods transferred from a free zone to the imme diately adjoining area, called the "extension 
zone" are subject to a flat rate tax of 0.8 per cent on the c.i.f. value.154  This tax may be utilized as a 
tax credit against import duties and VAT if the goods are subsequently transferred elsewhere in Chile 
                                                      
149 In January 2009. 
150 Law No. 18.392 of 14 January 1985 (amended by Law No. 19.606 of 14 April 1999), and Law 
No. 19.149 of 6 July 1992 (amended by  Law No. 19.270 of 6 December 1993). 
151 Information provided by the Chilean authorities. 
152 DFL No. 2 was the subject of some amendments under Law No. 19.827 of 31 August 2002, Law 
No. 20.122 of 28 September 2006, and Law No. 20.320 of 31 December 2008. 
153 Sales to visitors not exceeding US$1,000, and of a non-commercial nature, are exempt from tariffs 
and VAT. 
154 Resolution No. 1172 of the National Customs Service of 24 February 2009. WT/TPR/S/220 Trade Policy Review 
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  or exported.  The regions of Aysén and Magallane s and the province of Palena in the Los Lagos 
region have been declared "extension zones" for th e free zone in Punta Arenas in respect of capital 
goods.155 
214. The preferential regime in the Iquique fre e zone applies to industrial manufacturing 
companies established or setting up in Arica and engaged in activities for the purpose of obtaining 
goods different from the foreign raw materials, part s or components used to make them, or whose 
production process results in an irreversible transf ormation of the foreign raw materials, parts or 
components.156  When imported to the rest of Chile, but only up to 31 December 2010, these goods 
will be exempt from import duties, taxes and other customs levies. 
215. Law No. 19.709 of 31 January 2001 established a preferential customs and tax regime for the 
commune of Tocopilla in the Antofagasta region and this will remain in force until 
31 December 2026.  Manufacturing companies who se sole purpose is to produce inputs, parts or 
components, or to repair capital goods for the mini ng industry, and which became established in the 
commune of Tocopilla between 1 Fe bruary 2001 and 31 January 2006, ar e eligible for this regime.  
Law No. 20.333 (4 February 2009) extended  this cut-off date to 31 January 2012.157 
216. It is the Ministry of Finance's task to determine the tax regime for the free zones.  The zones 
are managed and operated by joint ventures in wh ich the public and private sectors participate.  
Activities in the free zones of Iquique and Aric a consist of export processing, for example, 
manufacturing, assembling and finishing imported g oods, whereas in the Punta Arenas free zone the 
activities are mainly commercial.  The companies managing these zones are in the real estate 
business.  According to information provided by the authorities, at 31 December 2007, the Arica free 
zone had 116 users, while the Iquique zone had 1,831.  The free zone in Punta Arenas had 58 companies in May 2008. 
217. Over the period under review, activities in free zones have expanded.  The figures provided 
by the authorities show that the total volume of foreign goods entering the free zones of Arica, 
Iquique and Punta Arenas rose from US$1.616 billion in  2003 to US$3.702 billion in 2008.  In the 
three zones, goods leaving the free zone for an exte nsion zone (according to requests for registration 
of invoices), as a whole, rose from US$604 million in 2003 to US$1,340 million in 2008, while consignments of goods from one free zo ne to another, abroad, to free warehouses or to a primary zone 
(according to re-shipment requests) increased from US$406 million to US$1.044 billion in 2008.  According to estimates by the authorities, the fiscal cost
158 of implementing the free zone programmes 
in 2008 amounted to Ch$44.616 billion, or some  0.27 per cent of total customs tax revenue. 
218. Firms established in the free zones are also entitled to streamlined customs procedures:  they 
are exempt from the obligation to use a customs disp atcher or agent for their customs operations;  they 
may leave Chilean or imported goods in a warehouse within the free zone for an unlimited length of 
time;  and they benefit from a remote endorsement sc heme which consists of electronic control of the 
goods by the National Customs Service. 
                                                      
155 Law No. 19.946 of 11 May 2001. 
156 Article 27 of DFL No. 2 of 2001. 
157 The concessions under this regime may be viewed on the website of the Official Journal of Chile at:  
http://www.diariooficial.cl/actualidad/20ulle/19709-html 
158 The fiscal cost means the amount which the Treas ury forgoes because of tax or tariff concessions. Chile WT/TPR/S/220 
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  Fund for the Promotion and Development of Remote Areas 
219. In order to assist the development of disadvant aged regions in the far north and south of 
Chile, the Fondo de Fomento y Desarrollo de las Regiones Extremas  (Fund for the Promotion and 
Development of Remote Areas)159  provides financial assistance for small- and medium-sized 
enterprises wishing to invest in these regions.  The Fund operates on an annual basis and is approved 
each year under the Finance Law.  It is only availa ble to small- and medium-sized producers of goods 
and services in the construction, machinery, equipm ent, special animal feed and small-scale fishing 
sectors.  The annual amount of individual investment may not exceed 50,000 UF (around US$1.8 million) and the funds provided may not exceed 20 per cent of the investment in fixed assets.  
According to information provided by the Chilean Treasury, in 2008 the Fund paid out 
Ch$1,049 million (US$1.78 million). 
220. In addition, employers in companies located in  the far north (Region I) and in the far south 
(Regions XI and XII and the province of Chiloé) ar e eligible for a subsidy representing 17 per cent of 
taxable remuneration, up to a maximum of C h$147,000 (approximately US$250) per month for each 
employee.
160  According to information from the authoriti es, the fiscal cost of this subsidy in 2008 
was Ch$51,000 million (some US$87 million). 
(b) Support for MSMEs 
221. Chile has several business support programmes, th e majority of which are administered by 
CORFO and are intended for small businesses.  They  range from micro enterprises with annual sales 
of 2,400 UF (US$86,160) or less up to medium-s ized enterprises with annual net sales of up to 
100,000 UF (some US$3.6 million).  The support essentially  consists of financing to start businesses, 
innovate, improve management, de velop networks of suppliers, encourage association between 
enterprises, and boost the creati on and transfer of technology, inter alia .161 
222. One of the most important programmes is the "C ORFO Investment Credit", which consists of 
granting long-term credit to finance investment proj ects by MSMEs.  The credit is channelled through 
commercial banks and may finance up to 100 per cen t of the investment, with repayment terms of 
three to ten years and interest rates ranging from 10. 8 to 15 per cent annually.  CORFO also offers a 
guarantee that covers 50 to 70 per cent of the cred it, with a limit of 5,000 UF (around US$179,500) 
per beneficiary.  The authorities have indicated that, in 2008, loans amounting to US$224.4 million were granted, with guarantees amounting to US$106.1 million. 
223. CORFO's Fondo de Asistencia Técnica  - FAT (Technical Assistance Fund) finances business 
management projects that help to enhance the qua lity and productivity of businesses.  CORFO covers 
up to 70 per cent of the total cost of employing c onsultants, with minimum and maximum limits.  The 
Programa de Desarrollo de Proveedores  (Suppliers' Development Programme) finances projects to 
integrate MSMEs in export chains and clusters, cove ring up to 50 per cent of the total cost of the 
project (with ceilings for each stage of the project and by business).  The Proyectos Asociativos de 
Fomento  (Cooperative Promotion Projects) programme supports the establishment and growth of 
groups of at least five firms that have a common  business plan so as to enable them to achieve 
                                                     
 
159 The Fund was set up in 1980 pursuant to Decree Law No. 3.529 of the Ministry of Finance.  Decree 
No. 15 of 1981 laid down the terms for the Fund and it was amended by Law No. 19.606 of March 1999. 
160 Law No. 19.853 of 11 February 2003, and Decree Law No. 889 of 30 January 1975. 
161 The details of the programmes offered by CO RFO may be viewed at:  http://www.corfo.cl/ 
líneas_de_apoyo WT/TPR/S/220 Trade Policy Review 
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  economies of scale, share information on mark ets and obtain access to competitive resources.  
CORFO finances up to 50 per cent of the total cost of each stage of the project, with maximum limits. 
224. CORFO also has many other financing and s upport programmes for MSMEs.  According to 
figures given by the authorities, in 2008 the loans granted by CORFO to MSMEs amounted to 
US$512 million, channelled through the banking and non-banking financial system, while the amount 
of other support and subsidies to businesses a nd technological entities amounted to some 
US$92.2 million. 
(c) Innovation for competitiveness 
225. One of the economic policy priorities of the Chilean Government and CORFO's principal 
field of action is support for technological innovation in business.  At the head of the institutional 
structure in this area is the President of the Republic, who is advised by the Consejo Nacional de 
Innovación para la Competitividad  - CNIC (National Council on I nnovation for Competitiveness).  A 
Committee of Ministers of Innovation, chaired by the Minister of the Economy, is responsible for drafting innovation policy, following the recommendations of the CNIC, and also manages the Fondo 
de Innovación para la Competitividad  (Fund for Innovation for Competitiveness). 
226. Support is provided through various entities, pa rticularly through InnovaChile, which since 
March 2005 has replaced the former Fondo Nacional de Desarrollo Tecnológico y Productivo  
(National Technological and Produc tion Development Fund).  InnovaCh ile, which is part of CORFO, 
provides financing for research and development proj ects to any type of company whose purpose is to 
promote innovation and technology transfer.  Projects are selected by committees composed of 
representatives of the public and private sectors and a cademia.  Lines of support are also available for 
research centres.  In 2008, InnovaChile had a budget of Ch$47,772 million (around US$81 million) to 
be allocated to its various support lines.  The same  year, the total government resources for innovation 
amounted to Ch$233 billion (around US$398 milli on), corresponding to 0.68 per cent of the GDP.
162 
227. Law No. 20.241, published on 19 January 2008, established a tax incentive for private 
investment in research and development.  It consists of a credit against first category income tax 
corresponding to 35 per cent of all payments conn ected with research and development contracts 
certified by CORFO and signed with research centres lis ted in the Register kept by CORFO.  Another 
concession is the tax reduction applicable to the re maining 65 per cent of such payments, which can 
be deducted as a necessary cost for the production of income, irrespective of the firm's sector of 
activity. 
(iv) State-owned enterprises and privatization 
228. Chile has notified the WTO that Comercializa dora de Trigo S.A. (COTRISA) is the only 
State-trading enterprise.163  COTRISA has the authority to interv ene in the market for wheat and other 
grains, purchasing from Chilean producers when the tr ansaction price is lower than the price that 
would exist in a competitive market.  Neverthele ss, as Chile's notification indicates, COTRISA has 
not intervened in the domestic market for grai n since 2003 and has not engaged in importation or 
exportation.  In 2008, its tasks mainly concer ned providing services connected with packaging, 
storage and certification of the quality of grain, and encouraging production lin ks between small- and 
medium-sized grain producers and industrial users. 
                                                      
162 Figures provided by the Chilean authorities. 
163 WTO document G/STR/N/12/CHL of 6 August 2008. Chile WT/TPR/S/220 
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  229. After more than three decades of privatization,  which covered major economic sectors such as 
telecommunications and electricity, there were 30 Stat e-owned enterprises in Chile at the beginning of 
2009.  Some of these are of major economic importance, for example, the Corporación Nacional del 
Cobre  - CODELCO (National Copper Corporation), th e world's largest producer of copper, the 
BancoEstado, the Empresa Nacional del Petróleo  - ENAP (National Petroleum Company) and the 
Empresa Nacional de Minería  - ENAMI (National Mining Company) (see Chapter IV(4)).  Other 
companies either owned by the State or in which th e State is a shareholder are active in sectors such 
as port infrastructure, urban and inter-urban land transport, postal services, communication media, 
defence, gambling, free zones and supplies for remote areas. 
230. In 2007, Chile's State-owned enterpri ses as a whole earned operating revenue of 
US$31.872 billion, corresponding to 27.17 per cent of the GDP, with book assets of US$11.734 billion, and they employed 46,366 worker s.  The five largest companies had 83.4 per cent 
of the assets (CODELCO alone accounted for 40.4 pe r cent) and 96.8 per cent of the operating 
revenue (CODELCO was responsible fo r 53 per cent).  The majority of State-owned enterprises (23) 
are monitored by the Sistema de Empresas Públicas  - SEP (Government Enterprises System), a 
technical body whose role is to represent the State's interests in enterprises in which it is a partner or 
shareholder or which it owns.  The SEP appoints the boards of directors and monitors the strategic 
management of these enterprises in order to ensure that their performance is based on the principles of 
efficiency, competitiveness, transparency a nd probity, and that they are profitable. 
231. Between 2003 and 2008, priva tization mainly focused on por ts (see Chapter IV(7)(v)) and 
sanitary services.  In the case of companies providing  sanitary services, the rights to operate sanitary 
concessions for the production and distribution of dr inking water and the collection and disposal of 
waste water were put out to tender for a period of 30 years, and there are six regional sanitary 
companies.  The income earned from privatiz ation was over 17.5 million UF (approximately 
US$628 million). 
(v) Government procurement 
232. Chile has significantly reformed its regime for government procurement of goods and 
services since 2003 in order to make it more transparent and efficient, inter alia , through the use of an 
electronic procurement platform.  The reforms were envisaged as practical improvements and they have expanded participation by s uppliers and buyers in the government procurement market.  There is 
no discrimination whatsoever as regards products, ser vices and suppliers according to their origin.  
Purchasing by State-owned enterprises and for public  works is governed by the respective regulations. 
233. Procurement by the Chilean Government (excluding State-owned enterprises and 
concessions) amounted to US$5.045 billion (corresponding to 2.9 per cent of GDP) in 2008.  Over 900 purchasing agencies among the central and local administrative authorities are on ChileCompra's 
electronic bidding platform and some 1,600,000 contracts are handled annually.
164 
234. Chile did not sign the WTO plurilateral Agreem ent on Government Procurement, but is an 
observer in the corresponding committ ee.  The Chilean authorities have  indicated that, for the time 
being, they have no plans to negotiate accession to this Agreement, but they have expressed an 
interest in following the drafting of the new te xt.  Chile has accepted commitments on government 
procurement under the RTAs it has signed.  By  mid-2009, there were government procurement 
sections in 11 agreements signed by Chile (with  Central America, the European Community, the 
United States of America, the Republic of Korea,  EFTA, the P-4, Canada, Japan, Australia, Colombia 
                                                      
164 ChileCompra, 2008-2010 Strategic Plan. WT/TPR/S/220 Trade Policy Review 
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  and Mexico).  Moreover, in January 2009, Chile  signed an agreement on government procurement 
with Uruguay within the LAIA framework and this is  expected to come into effect during the last 
quarter of 2009. 
235. As part of the State's wide-ranging modernization plans, in 2003 Chile started to reform its 
government procurement regime. One pivotal elemen t of this reform was the enactment of the 
Procurement Law (Law No. 19.886), which came into  force in August 2003 with the aim of grouping 
together the procedures for government procurem ent of goods and services.  According to the 
2008-2010 Strategic Plan, the objectives of Chile's government procurement policy are to ensure a 
transparent, efficient and inclusive government  market and to generate innovation for its 
sustainability.165 
236. A World Bank study found that Chile's government procurement regime is considered 
generally free of corruption, given the probity of the public servants, decentralization and good 
budgetary and control systems.  As regards the 2003 reforms, the study found that their conceptual 
approach and design could be considered as b est practice and, although implementation was still 
under way, there were already positive results, par ticularly as regards disclosure of information, 
participation by buyers and selle rs, and procurement based on framework agreements (see below).166  
Nevertheless, some aspects of public work s procurement could be  improved (see below). 
(a) Procurement of goods and services 
237. The Basic Law on Administrative Contracts for the Supply and Rendering of Services 
(No. 19.886) of 30 July 2003167 and its implementing Re gulations (Ministry of Finance DS No. 250 of 
September 2004)168 lay down the legal framework for govern ment procurement of goods and services 
by all Central Government departments, regional and provincial governments, municipal authorities, 
the armed forces, the Central Bank and the Comptroller General of the Republic.  The Law does not apply to State-owned enterprises, which follow thei r own regulations.  In the case of public works, 
Law No. 19.886 applies to the mandatory use of the electronic information system for procurement and the Tribunal de Contratación Pública  (Government Procurement Tribunal) (see below), and on a 
general supplementary basis.
 169 
238. The main reforms introduced by Law No. 19.886 include the creation of the Dirección de 
Compras y Contratación Pública  - DCCP (Directorate of Purchasing and Government Procurement) 
of the Ministry of Finance, which is responsible for implementing the relevant government policy, as 
well as the creation of an electronic informati on system for purchasing and government procurement 
(ChileCompra)170, through which all entities covered by Law No. 19.886 must quote prices, invite 
bids, source contractors, award contracts and ca rry out procurement procedures for goods, services 
and public works (even though the latter are not subj ect to the law).  This electronic procurement 
information system is open to the public and free of charge and is managed by the DCCP.  Law 
                                                      
165 The Strategic Plan may be viewed at:  http://www.chilecompra.cl 
166 World Bank (2004). 
167 Laws No. 20.088 of 2006 and No. 20.238 of 2008 introduced minor changes to Law No. 19.886, 
particularly to Article 4 thereof, concerning cases of disqualification from procurement. 
168 Amended by Decree No. 1562 of the Ministry of Finance, published on 20 April 2006, and by 
Decree No. 260 of 13 July 2007. 
169 Law No. 19.886 and its implementing Regulations may be viewed at:  http://chilecompra.cl/ 
normativa_ legal.htm 
170 The ChileCompra website is:  www.chilecompra.cl Chile WT/TPR/S/220 
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  No. 19.886 also set up the Registro Nacional de Proveedores de la Administración Pública  (National 
Register of Public Administration Suppliers)171 and the Government Procurement Tribunal.172 
239. Law No. 19.886 provides for four types of government procurement, namely, framework 
agreements, public bidding, private bidding and direct negotiation or contracting.  Framework 
agreements allow the purchase of a wide variety of goods and services by various entities to be 
grouped together for greater efficiency and lower prices.  Under such agreements, awarded following 
a public bidding procedure, the DCCP agrees unit prices with suppliers of the goods and services in 
question, which government agencies then purch ase simply through purchase orders in accordance 
with the terms laid down in the framework agreements. 
240. Pursuant to Law No. 19.886 (Article 5), public bidding procedures are the general rule and 
are mandatory if the contracts exceed 1,000 UT M (around US$70,000), except in the circumstances 
covered by the Law.  Nevertheless, according to the implementing Regulations for the Law, a public 
bidding procedure is require d for procurement of goods and services exceeding 100 UTM 
(approximately US$7,000).173  Private bidding procedures and direct contracting are rare;  they must 
be based on a substantiated resolution and are onl y allowed in the circumstances defined in the 
Law.174  Breaking up contracts for the sole purpose of avoiding the public bidding procedure is 
prohibited.  The authorities have indicated that 91 pe r cent of procurement is through a public bidding 
procedure. 
241. All procurement, that is to say, public or pr ivate bidding procedures, direct negotiation or 
contracting and framework agreements must use the ChileCompra electronic information system.  
Without prejudice to the foregoing, for public bidding procedures, the call for bids may also be 
published in other international,  national or regional media. 
242. Law No. 19.886 lays down minimum time limits between the call for bids and the closing 
date for receipt.  If the amount of a contract is 1, 000 UTM or more, the call must be published at least 
20 calendar days prior to the cut-off date for receiving bids;  for lesser amounts, the minimum period is ten days.  For direct contracting, the mini mum period between publication of the price quotation 
and receipt of bids is five days.  All these time-limits may be decreased if only single goods or 
services are to be procured. 
243. The National Register of Public Administration Suppliers, kept by the DCCP, is an electronic 
register in which Chilean or foreign natural or lega l persons not domiciled in Chile may be registered.  
Listing in the Register attests to the legality and financial and technical capacity of the suppliers, but 
is not an essential requirement in order to take  part in procurement.  Entities may decide for 
themselves whether or not to require that bidders s hould be listed in the National Register at the time 
of contracting.  The Register is open to the pub lic and available on the website of ChileCompra, as 
well as on that of ChileProveedores.  An applicati on for listing in the Register may be made at any 
time.  According to information provided by the authorities, in April 2009 there were around 
32,000 suppliers listed in the Register, of whic h 57 per cent were from the metropolitan region and 
43 per cent from other regions. 
244. Pursuant to the implementing Regulations for Law No. 19.886, entities must establish the 
criteria for evaluating bids, taking into account, inter alia , the price of the bid, the experience of the 
                                                     
 
171 The Register of Suppliers (ChileProveed ores) website is:  www.chileproveedores.cl 
172 The Tribunal's website is:  www.tribunaldecompras.cl 
173 Article 10, paragraph 8, of the implementing Regulations for Law No. 19.886 (DS 250/2004). 
174 Article 8 of Law No. 19.886 and Article 10 of its implementing Regulations. WT/TPR/S/220 Trade Policy Review 
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  bidders, the technical quality of the goods or services offered, technical assistan ce, after-sales service 
and the delivery date.  The criteria must also be specified in advance in the tender specifications, 
showing the scores assigned to each of them.175  The technical specifications for the goods or services 
to be procured must be generic and must not refer to any specific brands. 
245. The bids are opened electronically through the in formation system.  The contract is awarded 
to the bid that provides the most advantageous  combination of the criteria laid down in the 
specifications and takes the form of an administ rative act duly notified to the winning bidder and the 
other bidders.  This act sets out the evaluation crite ria and shows the points scored that resulted in the 
winner being declared as having made the most co mpetitive bid.  The administrative act awarding a 
contract or declaring the procurement procedure null and void must be published in such a way that 
all suppliers can see for themselves the results of the bidding procedure.176  The contract may not be 
awarded to a bid that does not meet the crite ria and requirements laid down in the tender 
specifications. 
246. There is no provision in the legislation for marg ins of preference for national suppliers and no 
discrimination among products, services and suppliers according to their orig in.  Nor is there any 
provision for offsets as a condition for awarding a contract. 
247. Under Law No. 19.886, in September 2005 the Go vernment Procurement Tribunal was set up 
as a specialized and independent jurisdictional body of the State Administration.  The Tribunal is 
empowered to hear and decide on action taken to cha llenge any illegal or arbitrary act or omission that 
may have occurred between the appr oval of the tender specifications and the award of the contract in 
procurement procedures by government entities, in cluding those concerning public works.  Any 
natural or legal person having a pr oven interest in a procurement pr ocedure may submit an application 
to the Tribunal challenging the award within ten wo rking days from the time  when the contested act 
or omission became known or after its publication. 
248. After the Tribunal has agreed to hear the challenge, it may decree the suspension of the 
bidding procedure to which the challenge relates.  In a definitive ruling, the Tribunal decides on the 
legality or arbitrariness of the act or omission cha llenged and orders the meas ures needed to restore 
the rule of law.  An appeal may be made agai nst the Tribunal's rulings to the Appeal Court in 
Santiago.  In December 2008, 334 applications had been submitted to the Tribunal since its creation, 
of which 211 had been finalized and 123 were be ing processed;  on the same date, the Tribunal had 
issued 72 rulings.177 
(b) Procurement of public works 
249. There is no unified regulatory framework for public works and the procurement procedures 
are governed by the individual organic laws pertai ning to government and municipal authorities.  
Nevertheless, the regulations of the Ministry of Public Works (MOP) establish the guidelines 
followed by other entities. 
250. The MOP is responsible for public infrastructure works;  its organic law (DFL No. 850 of 
1997) and the Regulations on Public Works Contract s (Supreme Decree No. 75 of 2004, amended by 
Decree No. 810 of 2008) lay down the rules to be foll owed for such contracts.  There is also a Law on 
Public Works Concessions (Supreme Decree No. 900 of 1996 of the MOP) and its implementing 
                                                      
175 Article 38 of the implementing Regulations for Law No. 19.886. 
176 Articles 6 and 41 of the implementing Regulations and Articles 18 et seq . of Law No. 19.886. 
177 Information viewed at:  http://www.tribunaldecompras.cl Chile WT/TPR/S/220 
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  Regulations (DS No. 856 of 1997).178  Works contracts concluded by the Ministry of Housing and 
Urban Planning for its own purposes and contracts fo r carrying out, operating and maintaining urban 
works with third party involvement are governed by Supreme Decree No. 236, which lays down the 
general basic regulations for procurement of wo rks for housing and urban services, Law No. 19.537 
on co-ownership of property, and Law No . 19.865 on shared urban financing. 
251. A World Bank study in 2004 found that the MOP's bid evaluation and contract award 
procedures were generally open and transparent, although there was room for improvement in areas 
such as a unified register of contractors, th e submission of bids and appeal mechanisms.179  I n  
January 2005, new MOP regulations on pub lic works contracts came into force180, introducing 
changes aimed inter alia  at improving transparency, simplifying and streamlining the management of 
public works contracts, making the register of cont ractors more efficient and specifying the channels 
for appeals.  In December 2008, amendments to  the Regulations, consisting of administrative 
facilities, were approved so as to make it easier for SMEs to obtain access to public works contracts. 
(vi) Protection of intellectual property 
252. Since its previous Review, Chile has made a numbe r of reforms to its legislation with the aim 
of strengthening its intellectual property regime an d bringing it into line with its international 
commitments.  In some instances, Chile's legisl ation goes further than the obligations under the 
TRIPS Agreement, for example, in certain areas relating to copyright a nd industrial property. 
(a) Overview 
253. Chile is a net importer of products w ith a high intellectual property content181;  in 2007, 
imports of these products accounted for 9.1 per cent of  total imports of goods and 2.3 per cent of total 
exports.182  In the same year, Chile had a payment deficit of almost US$373 million in respect of 
royalties and licence fees, as a result of paying out US$434 million while earning US$61 million. 183 
254. Chile has been a member of the World Intellectual Property Organization (WIPO) since 1975 
and has signed a number of WIPO-administered treaties.184  Since the previous Review, Chile has 
                                                      
178 The MOP's rules may be viewed at:  http://www.mop.cl/mop_marco_legal.htm. 
179 World Bank (2004). 
180 MOP Supreme Decree No. 75 of  2004, which replaced the fo rmer Decree dating from 1992 
(DS No. 15). 
181 For example, products included in Annex A to the Ministerial Declarati on on Trade in Information 
Technology Products (excluding headings 8524.31 and 8524.91 of the HS);  pharmaceutical products (HS 30, 
including generic products);  alcoholic beverages and spirits (HS 22, excluding vinegar),  books and other printed matter (HS 49),  cinematographic film (HS 3706),  other exposed film (HS 3705) and records, CDs, 
computer programs and other recorded media (HS 8524). 
182 WTO Secretariat calculations based on information from the Comtrade database (HS), United 
Nations Statistics Division. 
183 WTO Secretariat calculations based on Chile's balance of payments, Central Bank of Chile. 
184 The WIPO treaties to which Chile is party are (with the date of entry into force in brackets):  Rome 
Convention (5 September 1974), Berne Convention (5 June 1970), WIPO Convention (25 June 1975), 
UPOV Convention (5 January 1996), Paris Convention (14 June 1991), Phonograms Convention 
(24 March 1977), Nairobi Treaty (14 December 1983), Copyright  Treaty (6 March 2002), Film Register Treaty 
(29 December 1993), Performances  and Phonograms Treaty (20 May 2002) and Patent Cooperation Treaty 
(2 June 2009).  See:  http://www.wipo.int/treaties/es /ShowResults.jsp?country_id=36C&start_year=ANY&end_ 
year=ANY&search_what=C&treaty_all=ALL WT/TPR/S/220 Trade Policy Review 
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  given effect to the WIPO Treaties on Internet Copyright185 and on Performances and Phonograms.186  
The Patent Cooperation Treaty (PCT) came into force for Chile in June 2009.187  In mid-2009, 
accession to the Copyright Treaty and the 1991 Act of  the UPOV Convention were being discussed in 
the Congress. 
255. The majority of Chile's RTAs include sp ecial chapters on intellectual property (see 
Table AII.3).  Where this is not the case, Chile  has included clauses on geographical indications or 
enforcement measures as part of  the market access disciplines.188  Chile has also signed agreements 
with the European Community on trad e in wines and spirits, which are annexed to its RTA.  In these, 
both parties undertake to grant protection for geogr aphical indications listed in the appendices to the 
agreements and to refrain from using certain generic indications and trademarks that are identical or 
similar to those of the other party.  Accession to the PCT is one of the commitments undertaken by 
Chile in its RTAs with the United States and the European Community. 
256. The WTO Agreement on Trade-Related Asp ects of Intellectual Property Rights 
(TRIPS Agreement) was enacted in Chile by means of Supreme Decree No. 16 of the Ministry of 
Foreign Affairs, of 5 January 1995. 
257. Chile has notified the texts of its intellectual property laws and regulations to the WTO (see 
Table AII.2).  When this report was being drawn up , notifications of various  laws and regulations 
recently submitted by Chile pursuant to the TR IPS Agreement were being examined.  In 
September 2000, the TRIPS Council examined Chile's legislation.  Chile responded to the questions 
put by various Members.189  Chile has also replied to th e checklist of issues on enforcement190 and has 
notified the WTO that the enquiry point for intelle ctual property rights is the Intellectual Property 
Department of the Ministry of Foreign Affairs.  Chile plays an active part in the work of the 
TRIPS Council, particularly in the area of ge ographical indications, on which it has submitted a 
proposed decision, together with 18 other Members,  on the creation of a multilateral system for the 
registration and notification of geograph ical indications for wines and spirits.191 
(b) Institutional and legal framework 
258. Chile's legislation covers the intellect ual property categories included in the 
TRIPS Agreement.  Table III.6 gives an overall but no t exhaustive picture of Chile's main rules on the 
protection of intellectual property and protected rights.  During the period under review, Chile 
amended its legislation in order to bring it into lin e with the TRIPS Agreement and other international 
agreements.  In some cases, the changes go beyo nd the disciplines of the TRIPS Agreement, for 
example, as regards the protection of undisclosed information on sanitary registration applications for 
pharmaceutical products and agricultural chemicals, and extension of the term of protection for 
copyright and related rights to 70 years. 
                                                      
185 DS No. 70 of the Ministry of Foreign Affairs of 7 March 2003. 
186 DS No. 139 of the Ministry of Foreign Affairs of 22 August 2003. 
187 DS No. 52 of the Ministry of Foreign Affairs of 2 June 2009. 
188 This is the case for the agreements with Canada, Central America, China and Panama. 
189 The questions put to Chile and the corresponding replies can be found in the following 
WTO documents:  IP/C/W/207 of 29 September 2000;  IP/C/W/208 of 29 September 2000;  IP/C/W/215 of 
3 October 2000;  IP/C/W/219/Add.1 of 15 November 2000;  IP/C/W/222 of 16 November 2000;  IP/C/W/225 of 22 November 2000;  and IP/Q/CHL/1 of 7 June 2001. 
190 WTO document IP/N/6/CHL/1 of 3 May 2000. 
191 WTO document TN/IP/W/10/Rev.2 of 24 July 2008. Chile WT/TPR/S/220 
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  Table III.6 
Overview of intellectual prop erty rights in Chile, 2009 
Main legislation Area covereda Term Exclusions and limitationsa 
Trademarks 
Industrial Property Law 
No. 19.039 (revised, 
coordinated and consolidated text in DFL No. 3 of 2006) 
and its implementing 
Regulations (Decree No. 236 of 2005);  Law No. 19.996 of 2005;  and Law No. 20.160 
of 2007 
 Any sign that may be 
represented graphically, 
capable of distinguishing on the market products 
or services or industrial 
or business establishments, including sounds. 10 years from the date of 
entry in the register;  
renewable for equal periods at the request of 
the owner. The following may not be registered as 
trademarks:  coats of arms, flags, names of 
States, international organizations or government public services, names of plant 
varieties, names of persons, names that 
mislead or deceive, trademarks that are identical or similar to well-known trademarks registered in Chile or abroad, 
registered geographical indications and 
appellations of origin and distinctive signs that are contrary to public order or morality. 
Patents  
Industrial Property Law No. 19.039 (revised, coordinated and consolidated 
text in DFL No. 3 of 2006) 
and its implementing Regulations (Decree No. 236 
of 2005);  Law No. 19.996 of 
2005;  and Law No. 20.160 of 2007 Any product or process 
that is new, involves an inventive step and is 
capable of industrial 
application. 20 years from the filing 
date;  non-renewable unless there has been an 
unjustified delay on the 
part of the authority in processing the granting of 
the patent or by the 
sanitary authority.   Procedures and materials such as scientific 
theories, business plans, mathematical, surgical, therapeutic or diagnostic methods;  
plants and animals (except microorganisms) 
and essentially biological processes for the production of plants and animals (other than 
microbiological processes);  parts of living 
beings as encountered in nature and natural biological processes and materials. 
Protection is not granted if an invention is 
contrary to public order, security, morality, the health of persons, animals or plants, or 
the environment. 
Compulsory licences may be granted to remedy anti-competitive practices, for 
reasons of public health, national security, 
non-commercial public use or national emergency;  or to work a subsequent patent that cannot be worked without infringing a 
prior patent. 
Utility models  
Industrial Property Law 
No. 19.039 (revised, 
coordinated and consolidated 
text in DFL No. 3 of 2006) and its implementing 
Regulations (Decree No. 236 
of 2005);  Law No. 19.996 of 2005;  and Law No. 20.160 
of 2007 Instruments, appliances, 
tools and objects, in 
which the arrangement 
can be claimed (appearance and 
functioning) and 
provided that it has utility. 10 years from the date of 
filing;  not  renewable. The exclusions and limitations laid down in 
Title III of the Industrial Property Law 
concerning patents, where applicable. 
Industrial drawings and designs  
Industrial Property Law 
No. 19.039 (revised, 
coordinated and consolidated 
text in DFL No. 3 of 2006) and its implementing 
Regulations (Decree No. 236 
of 2005);  Law No. 19.996 of 2005;  and Law No. 20.160 
of 2007 Industrial design:  any 
three-dimensional form 
and industrial or 
hand-made article used to make other units that 
can be distinguished 
from similar articles and has a new appearance. 
 
Industrial drawing:  combination of figures, 
lines or colours to be 
incorporated in a product for the purposes of ornamentation and that 
give it a new appearance. 10 years from the date of 
filing;  not  renewable. Designs and drawings whose appearance is 
dictated entirely by technical or functional 
considerations.   
Articles of clothing of any kind and products which consist of a form whose 
exact reproduction is necessary to allow the 
product in which it is incorporated to be assembled or connected to another product 
of which it is a part. 
 WT/TPR/S/220 Trade Policy Review 
Page 78 
 
 
  Main legislation Area covereda Term Exclusions and limitationsa 
Layout designs of integrated circuits 
Industrial Property Law 
No. 19.039 (revised, coordinated and consolidated 
text in DFL No. 3 of 2006) 
and its implementing Regulations (Decree No. 236 
of 2005);  Law No. 19.996 of 
2005;  and Law No. 20.160 of 2007 The three-dimensional 
arrangement of elements in layout designs of 
integrated circuits 
designed for their manufacture, to the 
extent that they are 
original. 10 years from the date of 
filing for registration or first commercial 
exploitation in any part of 
the world;  not renewable. The right does not include reproductions of 
layout designs made for private or evaluation purposes, analysis, research or 
teaching;  acts of commercial exploitation of 
original layout designs created as a result of the evaluation or analysis of a protected 
layout design;  acts of commercial 
exploitation of any article incorporating an unlawfully produced integrated circuit if the person carrying out such acts did not know 
and had no reasonable ground to know that 
it incorporated an unlawfully reproduced integrated circuit. 
Business secrets and information submitted to the auth ority in order to obtain sanitary registration  
Industrial Property Law 
No. 19.039 (revised, coordinated and 
consolidated text in DFL 
No. 3 of 2006) and its implementing Regulations 
(Decree No. 236 of 2005);  
Law No. 19.996 of 2005;  and Law No. 20.160 of 2007 Any knowledge 
regarding products/industrial 
processes which, if not 
disclosed, gives its owner an improvement, 
advance or competitive 
advantage.  
Undisclosed test data 
submitted to the authority in order to 
obtain the sanitary 
registration of pharmaceutical products 
and agricultural 
chemicals.  Registration is with the Public Health Institute. Indefinite. 
  
 
  
 
  
 
  
 
  
 
  
 
The competent authority may not disclose or utilize the test data for a period of 
5 years for pharmaceutical 
products and 10 years for agricultural chemicals. None. 
  
 
  
 
  
 
  
 
  
 
  
 
Protection is not granted if the owner engages in anti-competitive practices;  for reasons of public health, national security, 
non-commercial public use or national 
emergency;  if the product is the subject of a compulsory licence, if it has not been put on 
sale in Chile or abroad 12 months after its 
sanitary registration, or if the application for protection was submitted in Chile 
12 months after the date on which the first 
registration abroad was obtained. 
Geographical indications (GI) and appellations of origin (AO)  
Industrial Property Law 
No. 19.039 (revised, 
coordinated and consolidated text in DFL No. 3 of 2006) 
and its implementing 
Regulations (Decree No. 236 of 2005);  Law No. 19.996 of 
2005;  and Law No. 20.160 
of 2007. Law No. 18.455 of 1985 
(Appellations of origin);  and 
Decree No. 464 of 1995 (Wine-growing zoning) GI:  identifies the 
product as originating in 
a country or region or locality of the national 
territory, when its 
quality, reputation or other characteristic is 
basically attributable to 
its geographical origin.  
AO:  Ibidem . Also taking 
into consideration other natural and human factors affecting the 
special nature of the 
product. Indefinite. The following are not recognized as GI or 
AO:  signs or expressions contrary to 
morality or public order;  those that may mislead as to the geographical source, 
nature, method of manufacture, or qualities 
of the product;  those that are generic (except those recognized in Chile's trade 
treaties);  those that are identical or similar 
to other GI or AO for the same product. Chile WT/TPR/S/220 
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  Main legislation Area covereda Term Exclusions and limitationsa 
Copyright and related rights  
Law No. 17.336 of 1970 
(amended by Law No. 19.912 of 2003, Law No. 
19.914 of 2003, and Law 
No. 19.928 of 2004) and its implementing Regulations 
(Decree No. 1.122 of 1971)  Literary, artistic and 
scientific works, including, inter alia , 
musical compositions, 
radio or television adaptations, 
photographs, 
cinematographic works and computer programs. Life of the author plus 
70 years after his death or from the first publication 
or fixation, depending on 
the type of work. No authorization or remuneration is required 
if the work is used pr ivately, in educational 
establishments or charitable or similar 
institutions, not for profit. 
Regulations on the distribution of related rights 
(DS No. 4.764 of 1985) Includes economic and 
moral rights. 
No registration required. 50 years for broadcasts of 
broadcasting 
organizations. The adaptation of a computer program 
provided that it is essential for use in a 
particular computer and not intended for any other use;  the copy of a computer program 
for filing or back-up purposes;  these may 
not be transferred under any title.  
The exceptions provided in Articles 38 to 45 
of Law No. 17.336 also apply. 
New plant varieties  
Law No. 19.342 of 1994 and 
its implementing Regulations 
(Decree No. 373 of 1996) New plant varieties that 
are distinct, 
homogeneous and stable.  
Registration is with the 
Agriculture and Livestock Service. 18 years for trees and vines 
and 15 years for other 
species.  Not renewable. A breeder's right is not infringed if the 
farmer uses properly harvested reproduction 
material on his own farm.  This material may not, however, be publicized or 
transferred as seed. 
  
Compulsory licences are granted if the 
breeder exercises an abusive monopoly of the exploitation or sale of the protected 
variety. 
a The description of the areas covered and the excl usions or limitations listed is not exhaustive. 
Source :   WTO Secretariat. 
 
259. Since the previous Review, Chile has made  a number of changes to Law No. 19.039 on 
industrial property.192  These include the incorporation of new categories of protection in 2005193;  the 
protection of undisclosed information on new chemical entities submitted for the purpose of 
registering pharmaceuticals (five years) and agricultu ral chemicals (ten years);  the extension of the 
term for patents from 15 to 20 years from the date of  filing;  limited exceptions to patentability;  the 
determination of new grounds for granting compul sory licences;  stronger trademark protection, 
including the incorporation of sounds and well- known marks;  and new provisions on enforcement 
concerning summary civil proceedings, preventive and preliminary measures.194  In 2007, changes 
were also introduced in the procedure for annulling registration, a supplementary term of protection in 
cases of unjustified administrative delay in granting  a patent, the coexistence of trademarks and 
geographical indications or appe llations of origin, and recognition of collective and certification 
marks.195 
260. As regards copyright and related rights, th e major changes introduced since 2003 concern 
clarification of the scope of the rights protected (including, for example, making the work available to 
                                                      
192 DFL No. 3, of 9 March 2006, contains the revised, coordinated and consolidated text of Law 
No. 19.039. 
193 Namely, geographical indications and appellations of origin, layout designs of integrated circuits, 
industrial designs, business secr ets and undisclosed information. 
194 Amendments introduced by Law No. 19.996, published on 11 March 2005. 
195 Amendments introduced by Law No. 20.160, published on 17 January 2007. WT/TPR/S/220 Trade Policy Review 
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  the public)196, the incorporation of new elements such as textile designs and information management, 
and extension of the term of copyright protection from 50 to 70 years after the author's death (or from the date of publication or fixation, depending on the type of work).  There are also new provisions on 
border measures in order to ensure enforcement of rights (see below).
197  In mid-2009, the National 
Congress was discussing a draft intellectual property law198, which deals with issues such as civil and 
criminal proceedings to deal with piracy-related o ffences, limitations and exceptions to copyright and 
related rights and the responsibility of Internet ser vice providers.  The draft, which has been the 
subject of considerable debate among the various st akeholders in the knowledge industry, civil society 
and the Government, has been approved by the Ch amber of Deputies and is now before a special 
Senate commission. 
261. Law No. 20.169 was enacted in early 2007 to pu nish acts of unfair competition and applies 
specifically to intellectual property rights.  Ac ts considered by the Law to constitute unfair 
competition include improper use of distinctive signs belonging to a third party, false information on 
the goods or services of a third party likely to impa ir its reputation on the market and the manifestly 
abusive exercise of judicial proceedings in order to  hamper action by an agent on the market (see also 
(4)(ii) above). 
262. The Instituto Nacional de Propiedad Industrial  - INAPI (National Industrial Property 
Institute), of the Ministry of the Economy, is the government body responsible for registering and 
promoting industrial property rights (trademarks, pate nts, utility models, industrial designs, integrated 
circuits and geographical indications) and it has a database of applications and/or registration of 
trademarks and patents that  is open for consultation.199  The INAPI started to operate in 
January 2009200, replacing the former Industrial Property Department.  The Departamento de 
Derechos Intelectuales  - DDI (Intellectual Property Rights De partment) in the Directorate of 
Libraries, Archives and Museums, is responsible fo r the Intellectual Property Register (copyright and 
related rights).201  The Seeds Department of the SAG deals w ith applications for the protection of new 
plant varieties and the SAG's New Plant Variety Assessment Committee grants registration for them. 
263. The Instituto de Salud Pública  - ISP (Public Health Institute), belonging to the Ministry of 
Health, keeps the register of me dicines, information on which h as been protected as undisclosed 
information, while the Pesticides and Fertilizers Depa rtment of the SAG is responsible for registering 
agricultural chemicals, information on which has been protected as undisclosed information.  The 
Interministerial Intellectual Property Committee, ch aired by the Ministry of Foreign Affairs and 
composed also of the Ministries of the Economy, Education, Health, and Agriculture and the National 
Council for Culture and the Arts, was set up in 2005  to coordinate Chile's position in international 
forums and facilitate implementation of its international commitments. 
264. Law No. 19.996 created the Industrial Propert y Tribunal, a special and independent 
jurisdictional body, to hear and settle disputes relating to opposition or cancellation of industrial 
property rights and plant variety rights registered  with the SAG.  Appeals against the Tribunal's 
                                                      
196 So that members of the public may have access to  such works from the place and at the time they 
wish. 
197 Amendments introduced by Law No. 19.912, published on 4 November 2003, Law No. 19.914 of 
19 November 2003 and Law No. 19.928 of 31 January 2004. 
198 Bulletin No. 5012-03. 
199 The INAPI database is available at:  http://www.dpi.cl/dpi_web/Frm_Login_ default2.htm 
200 The INAPI was created by Law No. 20.254, published on 14 April 2008. 
201 The website of the Intellectual Property Right s Department is:  http://www.dibam.cl/derechos_ 
intelectuales/contenido.asp?id_contenido=122&id_submenu=173&id_menu=38 Chile WT/TPR/S/220 
 Page 81 
 
 
  rulings may be submitted to the Supreme Court of  Justice.  Infringements of rights relating to 
industrial property, intellectual property and regist ered plant varieties always come before the 
ordinary civil or criminal courts of justice. 
265. Chile's legislation provides for the possibility of  granting compulsory licences.  In the case of 
patents, a compulsory licence is granted if the pate nt's owner has been guilty of conduct or practices 
contrary to free competition according to a decision by the Competition Tribunal (see (4)(ii) above);  for reasons of public health, national security, n on-commercial public use, national emergency or 
other extremely urgent situations;  also if the co mpulsory licence is needed  to work a subsequent 
patent that cannot be worked without infringing a prior patent, subject to certain conditions.
202  
Compulsory licences can also be granted if the breeder of a new plant variety exercises an abusive 
monopoly of the exploitation or sale of the protected variety.  The authorities have indicated that Chile has never granted compulsory licences.  As  regards implementation of paragraph 6 of the 
Doha Declaration on the TRIPS Agreement and Public  Health, Chile has not yet ratified the Protocol 
amending the TRIPS Agreement (Decision of the General Council of 6 December 2005 (WT/L/641)). 
266. The Intellectual Property Law contains provisi ons regulating the collective management of 
copyright and related rights.
203  The collective management bodies are private bodies that must be 
authorized by the Minister of Education in order to  engage in their activities.  The Law provides that 
the royalties collected must be shared among the owners of the works or productions used in 
proportion to their use.  The management bodies ar e obliged to agree, with any person who so 
requests, the concession of non-exclusive authoriza tion for the intellectual property rights they 
administer, in accordance with the rates they themselves fix.  In Chile there are several collective 
management bodies.204  According to data provided by the Chilean Copyright Society, in 2007 the 
royalties collected by the Society for copyright and reproduction rights amounted to US$14.8 million, and remittances to foreign management bodies amount ed to US$2.8 million.  According to data 
provided by Chileactores, the amounts collected for related rights resulting from repeat broadcasts on 
open television channels amounted to US$169,704 in 2007. 
267. Chile allows parallel imports for all intellectua l property rights and, as a result, provides for 
international exhaustion of rights.  The Industrial Property Law provides that patents do not give the 
right to prevent third parties from marketing the pr oduct covered by the patent if they acquired it 
lawfully after the product was legally introduced into  trade in any country by the owner of the patent 
or by a third party, with the owner's consent.
 205  Likewise, the registration of a trademark does not 
authorize the owner to prohibit third parties from usi ng it on products legally marketed in any country 
by the owner or with his express authorization.206  As regards copyright and related rights, the 
legislation provides that the first sale or other tran sfer of ownership in Chile  or abroad exhausts the 
right of national and international distribution in resp ect of the original or the transferred copy of the 
protected work.207 
                                                      
202 Article 51 of Law No. 19.039 (revised, coordinated and consolidated text). 
203 Title V, Articles 91 to 102 of Law No. 17.336. 
204 The Chilean Copyright Society, th e Chilean Performers Society, th e Literary Rights Society, the 
Collective Management Body for the Rights of Chilean Audiovisual Producers, the Association of National 
Theatre, Cinema and Audiovisual Authors, the Management Society for Creators of Fixed Images, the Chilean 
Actors Corporation, and the Collective Management Body for Producers of Phonograms and Videograms. 
205 Article 49 of Law No. 19.039 (revised, coordinated and consolidated text). 
206 Article 19 bis E of Law No. 19.039 (revised, coordinated and consolidated text). 
207 Articles 18, 66 and 68 of Law No. 17.336, as amended by Law No. 19.914. WT/TPR/S/220 Trade Policy Review 
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  (c) Enforcement 
268. In Chile, infringement of intellectual property rights entails criminal penalties (prison or 
fines) and/or civil penalties (damages).  The Indus trial Property Law specifies the offences against 
rights in marks, patents, utility models, industria l designs, integrated circuits and geographical 
indications, and determines the respective fines.  In  addition, the tools or elements used to commit the 
offence are confiscated and given to the owner of  the right, and the articles produced illegally are 
destroyed.  There is no term of imprisonment for those infringing industrial property rights.  The Intellectual Property Law, on the other hand, defines offences against copyright  and related rights and 
these may give rise to a monetary penalty and/or imprisonment.  The draft amendment to the 
Intellectual Property Law mentioned above proposes increasing fines for infringement of copyright 
and related rights and the imposition of more sev ere penalties for piracy committed by organized 
groups;  it also provides for the confiscation of the materials and elements used to commit the offence 
and the destruction of the articles, unless the owner authorizes their donation. 
269. Infringements of the rights of breeders of pl ant varieties are also subject to fines or 
imprisonment.  A draft law to replace the current regulations and incorporate the standards in the 
1991 Act of the UPOV Convention was being discussed by Congress in mid-2009 and it increases the 
fines for infringement, eliminates prison terms and makes the special measures on enforcement in the 
Industrial Property Law applicable, including preventive and preliminary measures. 
270. As regards border measures, Law No. 19.912 provid es that the owners of industrial rights, as 
well as the owners of copyright and related rights,  may request the civil courts to suspend customs 
clearance of goods if an infringement has occurred or there are reasonable grounds for believing that 
an infringement has occurred.  To maintain this measure, the owner of the right must submit a request 
within ten days following notification of the suspen sion of clearance.  The customs authority may also 
ex officio suspend clearance of goods for a maximum period of five days if it is obvious that the goods are counterfeit or infringe copyright, in which ca se it must immediately notify the right-holder.  
In 2008, the Customs seized 1,182,421 articles susp ected of infringing marks or copyright, with a 
value of US$49.1 million.
208 
271. In 2008, a special force was set up within the Economic Offences Unit of the Chilean Police 
Force in order to investigate offences related to infringement of intellectual and industrial property 
rights.  The special force seized goods amounting to US$6.2 million during its first year of operation.  The Economic Offences and Mone y Laundering Unit is responsible for giving Chilean public 
prosecutors support in investigations, disputes, case studies and compilation of case law on 
infringement of intellectual property rights.  In 2008, the Office of th e Public Prosecutor investigated 
1,179 cases of infringement of intellectual prope rty rights and 7,425 cases of infringement of 
industrial property rights.
209 
                                                      
208 Information provided by the Chilean authorities. 
209 Idem