Chile, a long and narrow country in South America, has established itself as one of the most open economies in the world, with a robust customs tariff regime designed to facilitate trade and protect local industries. As a member of the World Trade Organization (WTO), Pacific Alliance, and various free trade agreements (FTAs), including with the United States, China, the European Union, and other countries, Chile benefits from preferential tariff treatment with key trading partners. The general customs tariff for most imports to Chile is 6%, though numerous products benefit from lower or zero tariffs due to Chile’s extensive network of FTAs. Special import duties are applied to specific products from certain countries under trade remedy laws, such as anti-dumping and countervailing duties.
Custom Tariff Rates by Product Category in Chile
1. Agricultural Products
Agriculture plays a significant role in Chile’s economy, both in domestic production and exports. However, the country also imports various agricultural products, including grains, fruits, vegetables, and meat, to meet local demand. The tariff structure for agricultural products is generally low due to Chile’s numerous trade agreements, though certain items are subject to special duties when needed to protect domestic producers.
1.1 Basic Agricultural Products
- Cereals and Grains: Chile imports cereals such as wheat, rice, and maize, as local production is often insufficient to meet domestic demand.
- Wheat: Typically taxed at 6%, though imports from countries with free trade agreements (e.g., United States, European Union, China) generally face 0% tariffs.
- Rice and maize: Generally taxed at 0% to 6%, with reduced or zero tariffs under Chile’s FTAs.
- Fruits and Vegetables: Chile imports a variety of fruits and vegetables, especially during the off-season, to ensure a steady supply for the domestic market.
- Citrus fruits (oranges, lemons): Typically taxed at 6%, though imports from FTA countries such as Peru, Argentina, and Mexico often enjoy duty-free access.
- Leafy greens and root vegetables: Subject to tariffs ranging from 0% to 6%, depending on the origin.
- Sugar and Sweeteners: Chile imports sugar primarily to supplement domestic production.
- Refined sugar: Typically taxed at 6%, though reduced or zero tariffs apply to imports from Peru and Mexico under FTAs.
1.2 Livestock and Dairy Products
- Meat and Poultry: Chile imports significant quantities of meat and poultry to meet domestic demand, particularly from neighboring countries and trade partners.
- Beef and lamb: Generally taxed at 0% to 6%, with duty-free access for imports from Argentina, Uruguay, and Brazil under regional trade agreements.
- Poultry (chicken, turkey): Subject to tariffs of 6%, but imports from Brazil and Peru benefit from preferential or zero tariffs.
- Dairy Products: Chile imports various dairy products, such as cheese, butter, and milk powder, from both regional and global markets.
- Milk and milk powder: Typically taxed at 6%, with lower or zero tariffs applied under trade agreements with the European Union, United States, and other countries.
- Cheese and butter: Subject to tariffs of 6%, though imports from FTA countries often enjoy zero tariffs.
1.3 Special Import Duties
Chile applies safeguard measures and anti-dumping duties on certain agricultural products when necessary to protect local producers from unfair competition. For example, anti-dumping duties have been applied to imported poultry from Brazil and Argentina at various times to protect Chilean poultry farmers from low-priced imports.
2. Industrial Goods
Chile’s industrial sector is diversified, with a focus on mining, manufacturing, and construction. The country imports a wide range of industrial goods, including machinery, equipment, and construction materials, to support its infrastructure and industrial development. Tariffs on industrial goods are generally low, particularly for countries with which Chile has signed FTAs.
2.1 Machinery and Equipment
- Industrial Machinery: Chile imports significant amounts of industrial machinery to support its mining and manufacturing industries. These imports benefit from low tariffs due to trade agreements.
- Construction machinery (excavators, bulldozers): Typically taxed at 6%, but reduced to 0% for imports from the United States, China, European Union, and other FTA partners.
- Manufacturing equipment: Tariffs range from 0% to 6%, depending on the country of origin, with most FTA partners enjoying duty-free access.
- Electrical Equipment: Electrical machinery and equipment, such as transformers and generators, are essential for Chile’s growing infrastructure.
- Generators and transformers: Typically taxed at 0% to 6%, with preferential rates under Chile’s FTAs.
2.2 Motor Vehicles and Transportation
Chile imports most of its motor vehicles and automotive parts, particularly from Japan, the United States, and the European Union. The tariff structure on motor vehicles is designed to protect the local assembly industry while facilitating trade with key partners.
- Passenger Vehicles: Import duties on vehicles vary depending on the type of vehicle and its country of origin.
- US-made vehicles: Duty-free under the Chile-US FTA.
- Japanese-made vehicles: Tariffs range from 0% to 6% under the CPTPP.
- European-made vehicles: Generally taxed at 0% to 6% under CETA.
- Commercial Vehicles: Imports of trucks, buses, and other commercial vehicles are essential for Chile’s logistics and transportation sector.
- Trucks from the US and Japan: Typically duty-free under respective FTAs.
- Commercial vehicles from other countries: Subject to tariffs ranging from 0% to 6%.
- Vehicle Parts and Accessories: Imports of vehicle parts, including tires, engines, and batteries, are taxed at 0% to 6%, with duty-free access for parts from FTA countries.
2.3 Special Import Duties for Certain Countries
Chile has imposed anti-dumping duties on specific categories of steel and automobile components from countries like China and South Korea to protect local manufacturers from unfair competition. These duties apply in addition to the general tariff rates.
3. Textiles and Apparel
Chile imports significant volumes of textiles and apparel, particularly from Asia, to meet domestic demand. The tariff structure on textile products is designed to protect the local textile industry while ensuring that consumers have access to affordable clothing.
3.1 Raw Materials
- Textile Fibers and Yarn: Chile imports raw materials such as cotton, wool, and synthetic fibers to support its local textile production.
- Cotton and wool: Typically taxed at 6%, with preferential rates for imports from Peru, China, and other FTA countries.
- Synthetic fibers: Tariffs range from 0% to 6%, depending on the country of origin and trade agreements.
3.2 Finished Clothing and Apparel
- Clothing and Apparel: Imported garments face moderate tariffs, with preferential rates for countries that have trade agreements with Chile.
- Casual wear and uniforms: Generally taxed at 6%, though imports from China, Vietnam, and Peru benefit from duty-free access under FTAs.
- Luxury and branded clothing: Tariffs remain at 6%, with certain exemptions under specific trade agreements.
- Footwear: Imported footwear is subject to tariffs ranging from 6%, though products from countries like China and Vietnam may benefit from lower tariffs under the CPTPP.
3.3 Special Import Duties
Chile has imposed anti-dumping duties on certain categories of textiles and footwear from countries like China to protect its local textile and apparel industries.
4. Consumer Goods
Chile imports a wide range of consumer goods, including electronics, household appliances, and furniture. The tariff rates on these products vary depending on the type of product and the country of origin, with many goods benefiting from reduced tariffs due to trade agreements.
4.1 Electronics and Home Appliances
- Household Appliances: Chile imports most of its large household appliances, such as refrigerators, washing machines, and air conditioners, from countries like China and the United States.
- Refrigerators and freezers: Typically taxed at 6%, but reduced to 0% for imports from FTA countries.
- Washing machines and air conditioners: Subject to tariffs of 0% to 6%, depending on the trade agreement.
- Consumer Electronics: Electronics such as televisions, smartphones, and laptops are essential imports in Chile, and tariffs are generally low due to trade agreements.
- Televisions: Typically taxed at 6%, though imports from China, South Korea, and the United States often benefit from duty-free access.
- Smartphones and laptops: Generally subject to 0% tariffs under Chile’s FTAs.
4.2 Furniture and Furnishings
- Furniture: Imported furniture, including home and office furniture, is subject to tariffs ranging from 0% to 6%, depending on the material and country of origin.
- Wooden furniture: Typically taxed at 6%, but duty-free access is available for imports from Brazil, Argentina, and other FTA partners.
- Plastic and metal furniture: Subject to 0% to 6% tariffs, depending on the trade agreement.
- Home Furnishings: Items such as carpets, curtains, and home décor products are generally taxed at 6%, though imports from FTA countries may enjoy lower tariffs or duty-free access.
4.3 Special Import Duties
Chile has imposed safeguard measures on certain categories of furniture imports from countries like China to protect local manufacturers from unfair competition.
5. Energy and Petroleum Products
Chile is highly dependent on imports for its energy needs, particularly petroleum products and energy-related equipment. Tariffs on these imports are generally low to support the country’s energy sector and infrastructure development.
5.1 Petroleum Products
- Crude Oil and Gasoline: Chile imports petroleum products, particularly from the United States, Middle East, and South American neighbors.
- Crude oil: Typically subject to 0% tariffs.
- Gasoline and diesel: Generally taxed at 0% to 6%, depending on the source.
- Diesel and Other Refined Petroleum Products: Refined products are typically taxed at 6%, though preferential tariffs apply under trade agreements with countries like Brazil, Argentina, and the United States.
5.2 Renewable Energy Equipment
- Solar Panels and Wind Turbines: To promote the use of renewable energy, Chile applies zero tariffs on renewable energy equipment, such as solar panels and wind turbines, to encourage investment in green energy.
6. Pharmaceuticals and Medical Equipment
Chile prioritizes access to affordable healthcare, and as such, tariffs on essential medicines and medical equipment are kept low or zero to ensure affordability and availability for the population.
6.1 Pharmaceuticals
- Medicines: Essential medicines, including life-saving drugs, are typically subject to zero tariffs under Chile’s general tariff regime. Non-essential pharmaceutical products may face tariffs of 6%, though reduced or zero tariffs apply to imports from countries with FTAs.
6.2 Medical Devices
- Medical Equipment: Medical devices, such as diagnostic tools, surgical instruments, and hospital beds, are generally subject to zero tariffs to support the healthcare sector.
7. Special Import Duties and Exemptions
7.1 Special Duties for Non-FTA Countries
Chile imposes anti-dumping duties and countervailing duties on certain imports from non-FTA countries when products are found to be unfairly subsidized or sold at below-market prices. For example, steel products and textiles from China have faced additional duties to protect local industries.
7.2 Bilateral and Multilateral Agreements
- Chile-United States Free Trade Agreement (FTA): Provides duty-free access for most goods traded between Chile and the United States.
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): Offers reduced or zero tariffs on goods traded between Chile and countries like Japan, Australia, and Vietnam.
- Chile-European Union Association Agreement (AA): Provides duty-free access for most goods traded between Chile and the European Union.
Country Facts
- Official Name: Republic of Chile
- Capital City: Santiago
- Largest Cities:
- Santiago (capital and largest city)
- Valparaíso
- Concepción
- Per Capita Income: Approx. $15,000 USD (2023 estimate)
- Population: Approx. 19.5 million (2023 estimate)
- Official Language: Spanish
- Currency: Chilean Peso (CLP)
- Location: Chile is located in South America, bordered by Argentina to the east, Peru to the north, and the Pacific Ocean to the west.
Geography of Chile
Chile is a long, narrow country that stretches along the southwestern coast of South America. It covers an area of 756,102 square kilometers, with a highly diverse geography that includes deserts, forests, mountains, and coastal plains.
- Mountains: The Andes mountains run along Chile’s eastern border, with Ojos del Salado being the highest peak.
- Deserts: The Atacama Desert in the north is one of the driest places on Earth.
- Climate: Chile’s climate varies from desert in the north to a Mediterranean climate in the central regions, and temperate rainforest in the south.
Economy of Chile
Chile is one of the most stable and prosperous economies in Latin America, with key industries in mining, agriculture, fishing, and manufacturing. The country’s open trade policies and strategic location make it an important player in global markets.
1. Mining
Mining is the backbone of Chile’s economy, with the country being the world’s largest producer of copper. Other important minerals include lithium, molybdenum, and gold. The mining sector accounts for a significant portion of Chile’s exports and government revenue.
2. Agriculture
Agriculture is a key sector in Chile’s economy, particularly in the production and export of fruits, vegetables, wine, and seafood. Chile’s diverse climate allows it to produce a wide range of agricultural goods, making it one of the world’s top exporters of wine and fresh fruit.
3. Manufacturing and Industry
Chile’s manufacturing sector includes the production of food products, textiles, and chemicals. The country has also developed a strong forestry and paper industry, with significant exports of wood and paper products.
4. Services and Tourism
The services sector, including banking, telecommunications, and tourism, is an important contributor to Chile’s GDP. The country’s natural beauty, including Patagonia, the Atacama Desert, and its extensive coastline, makes it a popular destination for international tourists.
