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.
Certain other imported “luxury goods” incur a 15 percent tax upon entry into Chile. These include: beer, chicha, cider, wine and champagne; gold, platinum, and white ivory articles; jewelry and natural or synthetic precious stones; fine furs; mobile home trailers; caviar conserves and their derivatives; pyrotechnic articles, such as fireworks, petards, and similar items (except for industrial, mining or agricultural use); air or gas arms and their accessories (except for underwater hunting); electric vehicles; and fine carpets and similar articles. Other liquors, such as grape pisco, whisky, aguardiente face a 31.5 percent tax, wines, sparkling wine cider and beer face a 20.5 percent tax. Tobacco products, such as cigarettes, cigars and processed tobacco, are subject to additional 61 percent, 51 percent and 57.9 percent taxes, respectively.
Additionally, all imports are subject to the same 19 percent Value Added Tax (IVA) imposed on domestic goods.