WORLD TRADE
ORGANIZATIONG/ADP/N/1/CHL/2
G/SCM/N/1/CHL/2
14 March 2000
(00-1017)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS
UNDER ARTICLES 18 .5 AND 32.6 OF THE AGREEMENTS
CHILE
The following communication, dated 9 March 2000, has been received from the Permanent
Mission of Chile.
_______________
Pursuant to Article 18.5 of the Anti-Dumping Agreement and Article 32.6 of the Agreement
on Subsidies and Countervailing Measures, I have pleasure in transmitting herewith the amendments
made to Chile's legislation on the investigation and imposition of anti-dumping duties and
countervailing measures.
The amendment to Law 18,525 concerning "Rules on the importation of goods", which
authorized the conduct of investigations concerning anti-dumping and countervailing duties, was
adopted under Law No. 19,612 published in the Offi cial Journal (Diario Oficial) of 31 May 1999.
The amendment in question introduces no significant changes in anti-dumping or countervailing duty
investigations.  It merely revokes the authority under Article 10 to establish so-called "tariff
surcharges" and minimum customs values, while at the same time incorporating procedures for theinvestigation and application of safeguard measures, through the amendment to Article 9 of
Law No. 18,525, procedures which were duly notified in document G/SG/N/1/CHL/2.
For a better understanding of this notification, the following two annexes are attached:
Annex I: the text of Law No. 19,612.
Annex II: the text of Law No. 18,525, in its current wording following the recent
amendments under Law No. 19,612.G/ADP/N/1/CHL/2
G/SCM/N/1/CHL/2
Page 2
ANNEX I
Law No. 19,612
Amending Law No. 18,525 on Import Pri ce Distortions for the Purpose of
Establishing a Safeguards Procedure Pursuant
to the Marrakesh Agreement
Bearing in mind that the National Congress has approved the following draft Law
"Single article  - Make the following amendments to Law No. 18,525:
(a) Delete the comma after the word "surcharges" in the first paragraph of Article 4 and
insert the words "of the kind" referred to in Article 9 or".
(b) Replace Article 9 by the following:
Article 9 .  In the circumstances envisaged in Article XIX of the General Agreement on
Tariffs and Trade 1994 and in the Agreement on Safeguards of the World Trade Organization, the
President of the Republic may apply ad valorem  tariff surcharges, through a Supreme Decree of the
Ministry of Finance, subject to a favourable report by the Commission referred to in Article 11.
The surcharges referred to in the preceding paragraph may be applied provisionally if the
Commission determines that the circumstances envisaged in Article 6 of the Agreement on
Safeguards of the World Trade Organization exis t.  The Commission shall have a period not
exceeding 30 days from the date of initiation of the investigation in which to make such
determinations.
The Commission may initiate an investigation pursuant to a written request submitted by the
domestic industry affected by the serious injury or threat of serious injury.  Domestic industry shall be
understood to meet the definition contained in Arti cle 4.1(c) of the Agreement on Safeguards of the
World Trade Organization.  The Commission may on its own initiative conduct an investigation whenit possesses information that justifies so doing.
The surcharges referred to in this Article shall not be applied for more than one year,
including the period of provisional application of the measure.  However, they may be extended for
one further period not exceeding one year when the reasons for their application still exist, subject to afavourable report by the Commission referred to in the first paragraph above.  Extension of the
surcharge shall include a timetable for its gradual dismantling, unless there are exceptional
circumstances duly substantiated by the Commission.
Application of a surcharge which, when added to the tariff in effect, amounts to a figure
higher than the tariff bound in the World Trade Organization shall require the approval of three-
quarters of the members of the Commission.
The application of emergency or safeguard measures provided for in trade agreements shall
be governed, as a supplementary matter, by the rules of this Article and its regulations.  Where there isinconsistency between the regulations under this Law and those contained in the aforementioned
agreements, the latter shall prevail to the extent of the inconsistency.G/ADP/N/1/CHL/2
G/SCM/N/1/CHL/2
Page 3
When compensation is agreed with another country under a safeguard measure, the President
of the Republic may, through a Supreme Decree of the Ministry of Finance and for the period of
application of the measure, lower tariffs or accelerate the tariff reduction process provided for in the
corresponding trade agreement.
The President of the Republic may, through a Supreme Decree of the Ministry of Finance,
raise the tariffs applicable to goods from another country when no agreement has been reached on
adequate compensation as a result of that country's application of a safeguard measure to Chilean
goods.
(c) In Article 10, delete the phrase beginning "Surcharges of" and ending with "24 per
cent ad valorem ".
(d) In Article 10, delete the words "these surcharges" between the words "which" and
"anti-dumping duties".
(e) In the fifth paragraph of Article 11, delete the words "these surcharges" and replace
the words "minimum customs values" by "surcharges".
(f) Replace the tenth paragraph of Article 11 by the following:
"The Commission shall be responsible for considering complaints concerning the
application of the Agreement on Subsidies and Countervailing Measures, the
Agreement on Safeguards and the Agreement on Implementation of Article VI of the
General Agreement on Tariffs and Trade 1994, which form part of the Marrakesh
Agreement Establishing the World Trade Organization".
With my approval and endorsement;  to be enacted and implemented as a law of the Republic.
Santiago, 28 May 1999.  EDUARDO FREI RUIZ-TAGLE, President of the Republic.
Eduardo Aninat Ureta, Minister for Finance.  Jorge Leiva Lavalle, Minister for the Economy,
Development and Reconstruction.G/ADP/N/1/CHL/2
G/SCM/N/1/CHL/2
Page 4
ANNEX II
LAW NO. 18,525
Rules on the Importation of Goods
Article 1.   All foreign goods to be imported into Chile shall be subject to payment of the
duties established in the Customs Tariff or in other relevant legal provisions.
The provisions of the preceding paragraph shall not apply to the total or partial exemptions
provided in the Tariff, in specia l laws or international treaties.
Article 2.   The customs duties established for various categories of goods in the official text
of the Tariff approved by Finance Decree No. 679 of 1981, published in the Diario Oficial  of
14 December 1981, and its subsequent amendments, and the duties to be applied under the 1980Montevideo Treaty Establishing the Latin American Integration Association (LAIA), shall form part
of this Law.
The general rules on interpretation of the tari ff nomenclature, the complementary general
rules, the rules on units and packaging, the rules on valuation procedures and the Notes under eachheading in the Tariff referred to in the preceding paragraph shall also form part of this Law.
Article 3.   The rules on surtaxes and rates shall be established in a resolution by the Director
of the National Customs Service.  The explanatory not es to the nomenclature issued or to be issued by
the Brussels Customs Cooperation Council shall be used to interpret the Customs Tariff withoutprejudice to the authority given to the Director of the Service under Article 4, No. 7, of the Basic Law
on the National Customs Service.
Article 4.   Where the President of the Republic subdivides the headings in the Customs Tariff
and modifies those subdivisions for statistical purposes or for any other administrative reasons, this
shall not affect the customs duty payable under Article 2 upon import of the goods, except when the
subdivision has been created to apply surcharges of the kind referred to in Article 9 or anti-dumpingduties or countervailing duties of the kind referred to in Article 10.
The National Customs Service may make the subdivisions and amendments referred to in the
preceding paragraph, subject to authorization by the President of the Republic.  In such cases, the
resolutions of the Service shall be published in the Diario Oficial .
The Director of the National Customs Service shall be responsible for indicating the customs
categories in which the goods shall be classified and shall be obliged to use the nomenclature in the
Customs Tariff for that purpose.
Article 5.   The taxable base for ad valorem  duties shall be the customs value of the goods
entering Chile.  This value shall be determined in accordance with the provisions of Articles 6, 7, 8
and 9 of this Law.
Article 6.   Where sales take place under free market conditions, the customs value shall be
determined on the basis of the transaction value, that is the price actually paid or payable for the
goods when sold for import into Chile.G/ADP/N/1/CHL/2
G/SCM/N/1/CHL/2
Page 5
A transaction shall be deemed to have taken place under free market conditions between a
buyer and an independent seller when the payment of the price is the only obligation performed by the
buyer and there is no contractual or other commercial relation between the buyer and the seller and
their partners other than that created by the transaction on the goods in question.  Two persons shallbe deemed to be related commercially if one of them has any interest whatsoever in the business of
the other or if both have a common interest in any business or if a third party has a direct or indirect
interest in the business of one of them.
When these free conditions do not exist, the taxable base of the ad valorem  duties shall be the
price that it is deemed the goods could obtain at the time the customs duties are payable in a
transaction under free market conditions between an independent buyer and seller.
Article 7.   The customs value of the imported goods shall include all the costs incurred for
transport to the place of importation.  These costs shall include loading and unloading, transport,
commission, insurance, brokerage, interest and the cost of packing unless they are governed by their
own customs regime.  The place of importation of the goods shall be the place of entry for customsformalities.  For the purposes of valuation, the customs duties shall be payable on the date appearing
on the corresponding customs declaration.
Article 8.   In the cases referred to in the final paragraph of Article 6 or where there are
grounds for considering that the declared value is not the actual value, the National Customs Serviceshall establish the value taking into account the various elements which, in the transaction in question,
are contrary to the concept of a transaction under free market conditions.
For the purposes mentioned above, the Service shall consider the customs value of identical
goods or, if there are none, similar goods sold at the same level of trade as those being valued.  Indetermining the value, the Service shall also  take into account reliable information from
manufacturers or may require information from national or foreign public authorities.  The same
procedure shall be followed when the importation of the goods into Chile does not come under a sales
contract.  In the case of used goods, when taking into account the price of new identical or similar
goods, reductions for use and age shall be taken into account as appropriate.
The valuation established on the basis of the rule s in this Law shall constitute the taxable base
for the application of ad valorem  duties or for fixing the amount corresponding to the difference in
duty if the import declaration has already been processed.  The acts of the National Customs Service
modifying the declared value shall be appealable  in conformity with the procedure laid down in
Articles 132 et seq. of the Customs Order.
Article 9.   In the circumstances envisaged in Article XIX of the General Agreement on
Tariffs and Trade 1994 and in the Agreement on Safeguards of the World Trade Organization, the
President of the Republic may apply ad valorem  tariff surcharges, through a Supreme Decree of the
Ministry of Finance, subject to a favourable report by the Commission referred to in Article 11.
The surcharges referred to in the preceding paragraph may be applied provisionally if the
Commission determines that the circumstances envisaged in Article 6 of the Agreement on
Safeguards of the World Trade Organization exis t.  The Commission shall have a period not
exceeding 30 days from the date of initiation of the investigation in which to make such
determinations.
The Commission may initiate an investigation pursuant to a written request by the domestic
industry affected by the serious injury or threat of serious injury.  Domestic industry shall be
understood to meet the definition contained in Arti cle 4.1(c) of the Agreement on Safeguards of theG/ADP/N/1/CHL/2
G/SCM/N/1/CHL/2
Page 6
World Trade Organization.  The Commission may on its own initiative conduct an investigation when
it possesses information that justifies so doing.
The surcharges referred to in this Article shall not be applied for more than one year,
including the period of provisional application of the measure.  However, they may be extended for
one further period not exceeding one year when the reasons for their application still exist, subject to a
favourable report by the Commission referred to in the first paragraph above.  Extension of the
surcharge shall include a timetable for its gradual dismantling, unless there are exceptional
circumstances duly substantiated by the Commission.
Application of a surcharge which, when added to the tariff in effect, amounts to a figure
higher than the tariff bound in the World Trade Organization shall require the approval of
three quarters of the members of the Commission.
The application of emergency or safeguard measures provided for in trade agreements shall
be governed, as a supplementary matter, by the rules of this Article and its regulations.  Where there isinconsistency between the regulations under this Law and those contained in the aforementioned
agreements, the latter shall prevail to the extent of the inconsistency.
When compensation is agreed with another country under a safeguard measure, the President
of the Republic may, through a Supreme Decree of the Ministry of Finance and for the period ofapplication of the measure, lower tariffs or accelerate the tariff reduction process provided for in the
corresponding trade agreement.
The President of the Republic may, through a Supreme Decree of the Ministry of Finance,
raise the tariffs applicable to goods from another country when no agreement has been reached onadequate compensation as a result of that country's application of a safeguard measure to Chilean
goods.
Article 10.   Anti-dumping
1 and countervailing duties are hereby established for imports of
goods of which the entry into the country causes or threatens serious injury to the domestic industry
by entering at diminished prices as a result of artificial effects in their respective markets.  The
President of the Republic shall determine the goods to which these surcharges, anti-dumping dutiesand countervailing duties shall apply, as well as their amount and duration, which shall not exceed
one year, after receipt of the report by the Commission referred to in the following Article.
Article 11.   A National Commission shall be established to investigate the existence of
distortions in the prices of imported goods.  This Commission shall comprise the Inspector-General ofthe Economy, who shall be its Chairman;  two represen tatives of the Central Bank of Chile, who shall
be designated by its Board;  representatives of the Ministry of Finance, the Ministry of Agriculture
and the Ministry of the Economy, Development and Reconstruction, who shall be designated by a
resolution published in the Diario Oficial ;  the National Director of Customs;  and a representative of
the Ministry of Foreign Affairs, designated as above.  The above-mentioned members shall have thealternates provided for by law or as designated by their respective institutions by resolution published
in the Diario Oficial .
The Commission shall be responsible for heari ng complaints concerning distortions in the
prices of internationally traded goods.  To that end, it shall conduct an investigation in each case.  Itshall report the opening and subject of an investigation within five working days after the complaint
has been duly lodged, by means of a notice published in the Diario Oficial.  Within 30 days from the
                                                     
1 The phrase beginning "surcharges of 3 per cent and ending with 24 per cent ad valorem  is deleted.G/ADP/N/1/CHL/2
G/SCM/N/1/CHL/2
Page 7
date of such notice, the Commission shall receive whatever information interested parties wish to
submit and request any reports it considers necessary.  Before reaching a decision, it shall also
conduct hearings of the interested parties, if they so request, to hear their arguments.
The complaint submitted to the Commission shall indicate the distortion and the manner in
which it causes or threatens material injury to the domestic industry affected.
Without prejudice to the provisions of the preceding paragraphs, the Commission may on its
own initiative conduct the investigations referred to  in this Article when it possesses information that
justifies so doing.  Investigations conducted by the Commission on its own initiative shall as far as
possible be subject to the same procedure as for investigations of complaints.
Within a maximum period of 90 days from the date of publication of the notice in the  Diario
Oficial , the Commission shall make a decision on the facts under investigation on the basis of the
information in its possession.  If the Commission considers that, on the basis of such information, it is
possible to establish the existence of distortions in the price of the product and that such distortionscause or threaten material injury to the affected dom estic industry, it shall so state in the decision it
delivers for that purpose, in which it shall recommend, either jointly or separately, the establishment
of the surcharges
2 referred to in Article 9 or3 the anti-dumping or countervailing duties referred to in
Article 10.
Before delivering the decision referred to in the preceding paragraph and at any stage in the
investigation, the Commission may request the President of the Republic, through the Minister for
Finance, to establish within a period of 60 days provisional surcharges, anti-dumping or
countervailing duties or minimum customs values.  The duration of the surcharges, anti-dumping or
countervailing duties or minimum customs values applied under this paragraph shall not extendbeyond the date on which the final decision is adopted, and shall be payable if they were in force at
the time when the Customs Service accepted the corresponding import declaration for processing.
The Commission may at any time request the competent authority to modify or repeal
measures adopted provisionally.
In the event that, upon completion of the investigation, the Commission decides that there is
no distortion in the price of the goods concerning which it requested provisional measures, or that
distortions do exist but do not cause or threaten serious injury to the national economy, the persons
affected by the provisional surcharges, anti-dum ping or countervailing duties or minimum customs
values may apply for the refund of such payments.  Likewise, the persons concerned may request the
total or partial refund of amounts paid under such provisional measures when, following arecommendation by the Commission in the relevant resolution that definitive surcharges, anti-
dumping or countervailing duties or minimum cust oms values be imposed, the competent authority
does not impose any such measure or adopts a measure for a lower amount than that which had to be
paid under the provisional measure.  Current interest shall accrue on refundable amounts.  Application
for refund must be made within 90 days of the date of entitlement to refund, after which the rightthereto shall lapse.
The resolutions of the Commission shall be adopted by a majority of votes;  in the case of a
tied vote, the Chairman shall have the deciding vote.
                                                     
2 The words "minimum customs values" are replaced by "surcharges".
3 The word "surcharges" is deleted.G/ADP/N/1/CHL/2
G/SCM/N/1/CHL/2
Page 8
The Commission shall be responsible for considering complaints concerning the application
of the Agreement on Subsidies and Countervailing Measures, the Agreement on Safeguards and the
Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994,
which form part of the Marrakesh Agreement Establishing the World Trade Organization.
Regulations enacted by Supreme Decree of the Ministry of Finance shall establish the
necessary procedure for the collection of the duties, taxes and other charges arising out of the
provisional imposition of minimum customs values, surcharges, anti-dumping and countervailing
duties and their refund, where appropriate.  The regulations shall also determine the procedures
necessary for the implementation of the provisions of this Article.
The Central Bank of Chile shall act as the Technical Secretariat of the Commission referred to
in the first paragraph of this Article.
__________