Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.
The U.S.-Chile Free Trade Agreement (FTA) came into force on January 1, 2004. Tariffs on 90 percent of U.S. exports to Chile were eliminated immediately. Since January 1, 2015, all trade between the U.S. and Chile became duty-free (i.e., zero tariff). For those products not of U.S. (or other FTA country) origin, Chile generally applies a uniform 6 percent tariff.
The U.S.-Chile FTA further addressed some other non-tariff import taxes that Chile applied. For example, under the FTA, Chile eliminated the 50 percent duty surcharge applied to used goods originating from the United States. In addition, Chile agreed to phase out its luxury tax on U.S.-made automobiles. As of January 2007, the tax was eliminated completely.
Imported luxury goods incur a 15 percent tax upon entry into Chile. These include gold, platinum, and white ivory articles; jewelry and natural or synthetic precious stones; fine furs; mobile home trailers; caviar conserves and their derivatives; air or gas arms and their accessories (except for underwater hunting); electric vehicles; and fine carpets and similar articles. Pyrotechnic articles, such as fireworks, petards, and similar items (except for industrial, mining, or agricultural use) are subject to 50 percent tax.
Natural or artificial non-alcoholic beverages, energizing or hypertonic, syrups and in general any other product that substitutes them, are subject to 10 percent tax. In the event that any of these beverages have a nutritional composition of high sugar content of more than 15 grams for every 240 milliliter, the tax rate increases to 18 percent.
Wines, sparkling wines or champagne, sunny wines, chichas, and ciders intended for consumption, whatever their packaging, beers and other alcoholic beverages, whatever their type, quality or denomination, are subject to a rate of 20.5 percent tax. Liquors, piscos, whiskey, spirits, and distillates, including liquor or flavored wines similar to vermouth, are subject to 31.5 percent tax. Cigars are subject to 52.6 percent tax, tobacco elaborated products, pay 59.7 percent tax and cigarettes pay 30 percent tax plus an additional percentage based on the Monthly Tax Unit. These additional taxes are charged at the retail level, much as a sales tax or value added tax. Additionally, all imports are subject to the same 19 percent Value Added Tax (Impuesto al Valor Agregado, IVA) imposed on domestic goods.
Exporters may consult the International Trade Administration’s Customs Info Database (free registration required) to estimate duties and taxes.