Chile's trade fell by 27,8% compared to the same month in 2019, totaling $8.535 billion, the lowest figure since 2009, at the height of the subprime crisis, the Customs Service reported.
Exports fell by 20,7%, totaling $4.940 billion, and imports fell by 34,2%, totaling $3.900 billion in the fifth month of this year compared to the same period in 2019, according to the Customs Foreign Trade Report.
In any case, this flow of goods through imports and exports allowed the State to collect US$ 4.891 million in customs duties and a series of taxes, such as VAT or taxes on diesel oil, automotive gasoline or tobacco.
El Undersecretary of Finance, Francisco MorenoHe explained that “Chile’s trade during the past month fell by -27.8% compared to the same month last year. These figures take us back to July 2009 – in the midst of the subprime crisis – when our trade fell by -28,5% compared to the previous year. Given this scenario, as the Ministry of Finance we are promoting trade facilitation measures that will help us to have a prompt recovery. All our services, especially the National Customs Service, continue to work so that foreign trade and the supply chain of essential goods and supplies for all citizens continue to operate as quickly as possible.”.
In turn, the National Director of Customs, José Ignacio Palma, highlighted that “From the very beginning we have been developing coordinated work with other services and with the private sector to ensure that the control and inspection we carry out in all ports and border crossings is as expeditious as possible, facilitating foreign trade through the adoption of contingency measures.".
"It should be noted that the facilitation measures implemented by the National Customs Service, as well as the Integrated Foreign Trade System-SICEX, are in force and operational in support of the challenging global panorama that we are facing.", added the Coordinator of Trade Facilitation and Trade Policy of the Ministry of Finance, Joseph Nehme.
Exports
For this same period, exports totaled US$ 4.940 billion: mining exports fell 12,5% and non-mining exports fell 27,4%. In the year-to-date, exports have fallen 11%, totaling US$ 28.664,6 billion. It should be noted that 27.732.316 tons have been exported to date, with a growth of 6%).
Mining sector exports account for 51% of total exports in the year to date and while exports of copper ore and concentrates fell by 21% in May, copper exports increased slightly by 0,2%.
As regards non-mining exports, some of the main decreases in May were: grapes -41,9%, cellulose -25,2%, wine -20,9%, wood -18% and salmon and trout -9,3%. Among the main increases, pork stands out with +43,6%, fishmeal +29,2% and cherries +6,4%.
The performance of services exports is remarkable. They showed a growth of +15,6% in the month of May, totaling US$ 99 million, although with an accumulated year-to-date figure of -4,9%. This performance is an example of the greater resilience of the sector in relation to goods.
Imports
Imports in May 2020 totaled US$ 3.900 billion, representing a contraction of 34,2%. In the year-to-date, imports have represented US$ 22.307 billion, suffering a decrease of 18,7%. In the same period, 25.463.959 tons have been imported, with a drop of -5,8%.
In May, non-fuel imports were worth US$ 3.564 billion, a decrease of 24,3%. The main decreases include: machinery -13,7%, means of transport -46,9%, food -23,8%, clothing -58,4% and technology -32,4%. To date, this sector has an accumulated decrease of -16,4%.
Fuel imports in May amounted to US$ 335,5 million, a drop of 72,5%. Accumulated to date, the contraction is 29,4%.
Vehicles
Regarding national imports, one of the products that has registered a significant drop in purchases between January and May 2020 is vehicles for the transport of people, with a decrease of 48,3% in terms of value and 54.819 fewer units compared to the same period in 2019.
This drop is largely explained by the decrease in vehicle purchases from South Korea (-81,6%), Brazil (-64,6%) and Japan (-48,3%), which together represent a decrease of 27.680 cars.
For its part, China, the country that led the shipments of this type of products to the country, representing 25,6% of the total vehicle imports (216,8 million dollars), showed a decrease in the imported quantity of 23,1%, that is, 5.615 fewer units, a figure that only explained 10,2% of the total drop in acquisitions of vehicles for the transport of people.
It is also important to note that although 96,2% of imports of this type of merchandise entered through the port of San Antonio, in terms of units, these revenues showed a drop of 47,4%, equivalent to 52.631 fewer vehicles, which represents a decrease of 734,3 million dollars.
Corn for consumption
Contrary to the case of vehicles, this is what happens with imports of a non-fuel market product, corn for consumption, in which increases in purchases have been observed during 2020.
Between January and May of this year, corn purchases for consumption increased by more than 16% in its imported volume, (954.035,7 tons), compared to the same period in 2019, a figure equivalent to 39,3 million dollars more; Argentina being the main supplier country, which accounted for 87,2% of shipments of this product in terms of amount. It is also important to note that approximately 95,0% of national corn purchases, both in tons and amount, actually entered the country through the port of San Antonio.
tax collection
Between January 1 and May 31, US$ 4.891 billion were collected, money that goes directly to state coffers and is obtained from the collection of customs duties and a series of taxes, such as VAT or taxes on diesel oil, automotive gasoline or tobacco, among others. There was a decrease of 16,8% less than that recorded in the same period in 2019.
The main tax collected was VAT, amounting to US$ 4.146 billion. The specific tax on diesel oil was in second place, contributing 8,1% of Customs revenue.
In 2019, a total of 49.200 billion dollars were collected in Chile. Of this amount, 27,7% was collected by the National Customs Service through control and inspection processes.
Trade facilitation
Since March, the National Customs Service has taken a series of measures to protect the health of officials and their families, and to facilitate foreign trade and keep the logistics chain operational, thus contributing to the country's economic development, issuing the following resolutions so far:
- Resolution No. 1.179, of March 19: measures to facilitate foreign trade, such as electronic procedures and the limitation of the presence of officials and personnel in logistical aspects, such as cargo inspections
- Resolution No. 1.313, of March 26: referring to critical medical supplies to deal with Covid-19 and their more expeditious importation, generating a detailed list of goods that may be imported under this modality and a simplified procedure. In coordination with the Public Health Institute (ISP)
- Resolution No. 1.559, of April 17: allows the deferral of the total Value Added Tax (VAT) on imports, a measure aimed at micro, small or medium-sized companies whose annual income is between 75.000 and 350.000 Unidades de Fomento, for import operations carried out in the months of April, May and June 2020. In coordination with the Internal Revenue Service (SII).
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