Importing products is an increasingly common practice in the world, especially with the acceleration of e-commerce. Although any good can be imported, in Chile there are goods that are prohibited by current law.
In order to facilitate the operation for those who are starting out in this type of purchase, the JVD Customs Agency has prepared a twelve-step guide to follow.
1. The National Customs Service of Chile This is a public service responsible for monitoring the passage of goods across the country's borders, sea coasts and airports. It intervenes in international import and export traffic. www.aduanas.cl
2. Foreign Seller When making a first purchase, the supplier is asked for a Pro-Forma Invoice. This is an international quotation, a document in which the seller details the goods, specifying their price for a certain period of time that is also indicated. This document is always nominative, intended for a potential buyer. The same offer conditions cannot be freely extended to a third party, unless the seller agrees to do so. The pro-forma invoice is informative in nature, but at the same time, it implies a commitment by the offeror to respect the conditions inserted for the entire period of validity that he has freely and unilaterally established. In addition to its function as an offer document, they are also used to open creditors. In this sense, it is complementary to the offer made by another means, for example an offer letter or an email.
3.What goods can I import? Any merchandise may be imported, except those expressly prohibited by current legislation. Sometimes, the product to be imported, due to its nature, may be subject to authorization or control by a supervisory service, so it is necessary to obtain it, in advance, from the respective agency. The following are mentioned as examples:
.
4. The importation of the following goods is prohibited:
- Used vehicles (without prejudice to the deductibles established in current regulations).
- Used motorcycles.
- Used bicycles.
- Used and retreaded tires.
- Asbestos in any of its forms.
- Pornography.
- Toxic industrial waste.
- Goods that are dangerous for animals, agriculture or human health (for example; some pesticides used in agriculture, toys and articles for children that contain toluene, adhesives made from volatile solvents), which are prohibited by Decree of the Ministry of Health, the Ministry of Agriculture and other State agencies.
- Other goods that, according to current legislation, are prohibited from importing.
5. The Value of the Goods to be Imported is relevant as it determines the Procedure that must be followed
A. If the value of the goods does NOT exceed US $ 1.000 FOB valueThis is a simplified procedure, which can be carried out personally by the importer, before the corresponding Customs Office (the one with jurisdiction in the place where the merchandise will enter). The importer must present the following documents:
- Original Bill of Lading (sea route) or a document that takes its place, depending on the means of transport (if it is by land, it will be an International Waybill; if it is by air, it will be an Air Waybill).
- Commercial invoice.
- Insurance Certificate with the amount of the premium paid (CIF clause).
- Power of Attorney of the owner or consignee for a specific shipment, in cases where the person processing it is a third party.
- Approvals or certifications where applicable.
B. If the value of the goods exceeds US$1.000 FOB value. In this case, the importer must hire a Customs Agent. He must provide the Agent with the Basic Documents required to prepare the Entry Declaration that will be submitted to the SNA. In this regard, it is necessary to clarify that there are some documents that are mandatory for all commercial imports, while other documents are required only on certain occasions.
- The following documents are among the mandatory documents for all commercial imports:
- Original Bill of Lading, Waybill or Air Waybill, which proves ownership of the merchandise by the consignee.
- Original commercial invoice, certifying the merchandise being sold and its value.
- Insurance Certificate with the amount of the premium paid (CIF clause).
- Affidavit of the importer on the price of the goods, form provided by the customs agent.
- Mandate constituted by the sole endorsement of the original bill of lading.
C. Among the documents that are required only for certain import operations are the following::
- Original Certificate of Origin, in case the import is eligible for any tariff preference, pursuant to a Trade Agreement.
- Packing list, where applicable, always corresponding to the case of goods packed in full containers.
- Expenses Note, when these are not included in the commercial invoice or also when it is a purchase with an ex-factory clause.
- Permits, visas, certifications or approvals, where applicable.
6. What taxes must be paid on imports? As a general rule, imports are subject to the payment of ad valorem duty (6%) on their CIF value (cost of the merchandise + insurance premium + value of the transport freight) and to the payment of VAT (19%) on imports on their CIF value plus the ad valorem duty.
In some cases, depending on the nature of the goods, special taxes are required to be paid, based on the same tax base (CIF value + ad valorem duty). In other cases, the goods are subject to specific duties, according to the ranges established in each case (for example: wheat and sugar).
In the event of a purchase with a FOB clause, without contracted insurance, the SNA calculates a theoretical insurance of 2% on the FOB value.
In cases where their importation is authorized, used goods pay an additional surcharge of 3% on their CIF value, in addition to the taxes to which they are subject, depending on their nature.
7. What Goods Must Pay Additional Taxes? Among the goods subject to the payment of additional taxes upon import, the following can be mentioned, among others:
A. With an additional tax of 15% (on the customs value of the goods + ad valorem duty):
- Articles of gold, platinum and ivory;
- Jewelry, natural or synthetic precious stones;
- Fine carpets, fine tapestries and any other articles of a similar nature; classified as such by the Internal Revenue Service;
- Fine hides, classified as such by the Internal Revenue Service, whether manufactured or not;
- Preserved caviar and its substitutes.
- Air or compressed gas weapons, their accessories and projectiles, except those for underwater hunting.
B. With an additional tax of 50% (on the customs value of the merchandise + ad valorem duty): – Pyrotechnic articles, such as fireworks, firecrackers and similar, except those for industrial, mining or agricultural use or for light signaling.
C. With other taxes: Alcoholic beverages, soft drinks and tobacco
Trade Agreements: In the case of goods originating in a country with which Chile has signed a trade agreement (Free Trade Agreement – TLC), the ad valorem duty may be free or subject to a percentage reduction. VAT on imports is payable in any case.
Books: It should be added that, by virtue of the application of the Montevideo Treaty and for the purposes of calculating the payment of VAT, the importation of books, magazines and other printed matter for reading, culture or study are exempt from payment of the ad valorem duty. The benefits of this Treaty extend to all books and printed matter published in countries that are part of the World Trade Organization (WTO), by virtue of the Most Favored Nation Clause. By express provision of the Agreement, books that tend to produce propaganda that affects the public, social or moral order of the signatory countries, or that are advertising, are excluded from the benefit.
8. Payment Payment of tariffs for the import of goods can be made once the import declaration has been prepared and validated by Customs. Payment can be made electronically (www.tesoreria.cl) or through commercial banks or authorized financial institutions. The maximum payment period for customs duties is 15 days, counting from the date of issue of the income declaration. If payment is made after the deadline, it must be made directly to the General Treasury of the Republic, where the amount is recalculated based on the increase in the CPI and the corresponding interest for late payment. With the proof of payment, the goods are withdrawn for their subsequent transfer to the final destination. If the goods, having paid customs duties, are not withdrawn from the Primary Jurisdiction Zone (Warehouse or Customs Enclosure) within the 90-day period, they are presumed to be abandoned, and a surcharge must be paid on the duties.
9. Labeling, Classification and Packaging Requirements.Packaged products must be marked to show quality, purity, ingredients or mixtures, as well as the net weight or measurement of the contents. Packaged or canned foods imported into Chile must display labels in Spanish, detailing all ingredients, additives, manufacturing and expiration dates, along with the name of the producer or packer or distributor, as well as the importer, without prejudice to the specific regulatory requirements established for each particular type of food. Likewise, all sizes and weights must be converted for each particular type of food.
10. Products that require Pre-Marketing Certification
a) Electrical products and products that use fuel.
The Superintendency of Electricity and Fuels of Chile (www.sec.cl) is responsible for establishing the mandatory certification system, with specific protocols that electrical products must follow for their correct safety and energy efficiency performance, authorizing Certification Bodies and Testing Laboratories. The regulations governing the certification of these products is the Regulation for the Certification of Electrical Products and Fuels (Decree No. 298 of November 10, 2005), which aims to establish the procedures for the certification of safety and quality of electrical products, prior to their commercialization in the country. In general, products included in any of these categories require certification: Household appliances, Low Voltage Materials, Lighting, Measuring Instruments (meters), and Conductors.
b) Drugs and Cosmetics. The Institute for Public Health of Chile is the competent authority in matters of sanitary control of pharmaceutical and cosmetic products. Both pharmaceutical and cosmetic products, whether imported or manufactured in the country, must have the sanitary authorization of the Ministry of Health and be registered with the Public Health Institute prior to their commercialization. This authorization is subject to compliance with the sanitary standards approved by the Ministry of Health. The application for registration is available at www.ispch.cl
c) Narcotics and Psychotropic SubstancesThe import, export, transit, production and distribution of drugs, preparations and narcotic and psychotropic products requires sanitary authorization from the Public Health Institute. The specific regulations applicable to these products are the Narcotics Regulation, DS No. 404 of 1983 and the Psychotropic Products Regulation, DS No. 405 of 1983.
d) Pesticides and Fertilizers. The Agricultural and Livestock Service (SAG – www.sag.cl) is responsible for analyzing and evaluating each batch to authorize its commercialization through documentary and physical inspection. Pesticides: Resolution 3.670/99, technical requirements: composition, physical and chemical properties, toxicology and safety. Resolution 1038/2003: Analysis and evaluation criteria. Fertilizers: Decree Law 3557. No analysis will be necessary when an official certificate issued in the country of origin or by virtue of an International Convention that determines it is inadmissible is available.
e) Vehicles. Vehicles sold in Chile must undergo a homologation process to certify compliance with applicable emission and safety standards. The legislation on this matter can be found on the website of the Ministry of Transport and Telecommunications (www.mtt.gob.cl).
f) Food. The Ministry of Health (www.minsal.cl) is responsible for establishing technical standards for the production, distribution and marketing of food (permitted ingredients and their concentrations, declaration of nutritional information, tolerance of permitted pesticide residues and labelling standards). The import procedure requires two types of formalities before the Health Authority of the Metropolitan Region.
- A Customs Destination Certificate (CDA) must be requested and secondly, an Authorization for Use and Disposal must be obtained.
- Prior to this last request, the Regional Health Secretariat will inspect and/or subject said products to laboratory analysis to verify that they comply with current health regulations.
g) Personal protection elements against the risk of accidents at work. There is an official compendium regarding the national regulations on Personal Protective Equipment (PPE) that can be consulted on the website of the National Institute for Standardization (INN) (www.inn.cl).
11. Products that do not require prior certification, but must meet certain requirements for marketing
A. Toys. The Ministry of Health establishes technical standards regarding the physical and chemical properties of toys to ensure minimum safety requirements for their use. The Toy Safety Regulation, Decree 114 of 2005, requires the inclusion on the label of the aspects detailed below, information that may be incorporated into the product in the national territory, after customs clearance, but before its commercialization: generic name of the product, name or company name and address of the producer or person responsible for the manufacture or import of the toy, country of origin of the product, legend or symbol indicating the age of the user recommended by the manufacturer, and the warning to be used under adult supervision when necessary. An original certificate in official format, issued by the supplier, is required.
B. Footwear. The Footwear Labeling Regulation, Decree 17 of 2006, includes technical standard 1808 of 1980 on the requirements to be met for the marketing of footwear of both national and imported origin.
C. Textiles. Decree No. 26 of 1984 establishes the labeling and symbol requirements for the care of textiles. Labeling of Fabrics and Labeling of Clothing.
D. Plastic Products. The Labeling Regulation for Plastic Products integrates the technical standards relating to this product and specifies the labeling that all plastic products, whether national or imported, must bear, with the aim of verifying the manufacturer or importer.
E. Telecommunications. Through the website of the Undersecretariat of Telecommunications (www.subtel.cl) you can access all the technical regulations and approvals applicable to television, broadcasting, telephony or the Internet
12. Presumption of Abandonment Merchandise that is expressly and presumably abandoned, confiscated and seized, when applicable, will be sold at public auction to the highest bidder on the date and place set by the National Director of Customs. No notification or notice of any kind will be necessary for the inclusion of these goods at auction. The President of the Republic may exempt weapons or war supplies from the auction. In this case, the merchandise will become the property of the state. According to customs regulations, they are presumed to be abandoned.
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
