Description

Trade relations between EU and Chile are governed by the EU-Chile association agreement (2002), including a comprehensive free trade agreement that goes well beyond WTO commitments. The agreement:

  • eliminates barriers to trade
  • establishes clear rules for exporters, importers and investors
  • creates a free trade area in goods, services and government procurement
  • liberalises investment and capital flows
  • strengthens the protection of intellectual property rights.

The agreement also foresees that both parties will further liberalise trade in agricultural goods and services in the future, including protection of geographical indications.

Additional protocol bringing the EU's new member countries into the association agreement with Chile (2004)

Chile also has a very wide network of free trade agreements with other countries and regions.

Rules of Origin

Tolerance

Tolerance is fixed at 10% in price of the product for all products, except for textile and clothing, for which specific tolerance will apply (cf. Appendix 1)

See also: General rule of Tolerance or De Minimis

Cumulation

See also: General rule of Cumulation

Direct transport

Evidence of the direct transport will have to be brought to the customs authorities of the importing country

See also: General rule of Direct transport or Non-Manipulation

Duty drawback

Duty drawback is prohibited

See also: General rule of Duty drawback

Vessels conditions

Fish captured within the territorial seas of Chile or the EU will be considered as originating without additional conditions. Nevertheless, this would not apply to EU vessels fishing in Chile EEZ or in Chilean vessels in EU EEZ

For fish captured beyond territorial seas, the product will be considered as originating only if it was captured by a vessel:

1) Flying the flag of the beneficiary/partner country, and

2) Registered in that beneficiary/partner country, and

3 a) owned:

  • (i) to an extent of at least 50 per cent by nationals of Member States of the Community or of Chile, or
  • (ii) by a partnership or limited company with its head office in one of the Member States of the Community or of Chile, of which the manager or managers, Chairman of the Board of Directors or the Supervisory Board, and the majority of the members of such boards are nationals of Member States of the Community or of Chile and, of which at least half the capital belongs to those States or to public bodies or nationals of the said States, or
  • (iii) by a company other than those referred to in (ii) with its head office in one of the Member States of the Community or in Chile, of which the manager or managers, Chairman of the Board of Directors or the Supervisory Board, and the majority of the members of such boards are nationals of Member States of the Community or of Chile;

3 b) and of which the master and at least 75 per cent of the crew, officers included, are nationals of a Member State of the Community or of Chile.

Product specific rules of origin

Product Specific Rules are provided by Annex II including additional flexibilities for some products

Explanatory notes are provided in Annex III

Proofs of Origin

Under the rules of origin applicable to Chile (see Annex III to the Association Agreement), in order to benefit from the preferential duty rates, products originating in Chile must be accompanied by either:

  • a movement certificate EUR.1 - issued by 'DIRECON' of the Chilean Ministry of Foreign Affairs, as well as its local 'ProChile' offices. The exporter applying for the certificate should be prepared to submit documents proving the originating status of the products concerned.
  • an invoicedeclaration by the exporter

For consignments of products originating in Chile valued €6 000 or less, any exporter can fill out a declaration. Approved exporters can do so for consignments of any value.

When filling in an invoice declaration, you should be prepared to submit documents proving the originating status of your products.

To make an invoice declaration, you should type, stamp or print the following declaration (in the appropriate language) on the invoice, delivery note or other commercial document:

" The exporter of the products covered by this document (customs authorisation No ... ) declares that, except where otherwise clearly indicated, these products are of ... preferential origin"

You can find the different language versions, together with explanatory notes, in the second page of the invoice declaration. Check with your customs authorities for any extra requirements they might have.

You must sign your invoice declaration by hand.

If you are an approved exporter, you are exempt from this requirement provided you give your customs authorities a written undertaking that you accept full responsibility for any declaration identifying you.

To become an approved exporter, you must be able to satisfy your customs authorities of the originating status of your products, as well as any other requirements they may impose.

Competent customs authorities can withdraw your approved status if you abuse it in any way. To find out more about the procedures, contact the competent authorities (DIRECON for the Chilean side).

Proof of origin remains valid for 10 months

Please consult the explanatory notes to Annex III to the Agreement for details on general provisions and how to make out of proofs of origin.