F.A.Q

A firm, group, industry, or commercial sector may be specifically named as the beneficiary of a quota allocation, or the allocation may have a broad nature without naming the holder. Chile benefits from a number of bilateral quotas, including those negotiated in the Agreement with the European Union for specific products in the fishing and dairy sectors and those negotiated in the Agreement with the United States for avocados, condensed milk, artichokes, and other products. Quotas can be applied by a country to products from all other countries or they can be applied bilaterally within the framework of a Free Trade Agreement, as established by the World Trade Organization.

The following elements are included in the providing of a service, for instance: a service applied to a tangible good that the consumer provides (such as technical support for a television). a task carried out on an intangible good supplied by the customer (such as technical support for the Internet service contract). delivery of a non-tangible good (knowledge obtained during training). the environment designed for a consumer (in hotels and restaurants). Intangibility, flexibility, indivisibility, perishability, and absence of ownership are the key traits that set services apart from products. Services are "intangible," which means that customers cannot touch, taste, feel, see, or otherwise physically experience them before making a purchase. Variability: This implies that no service will ever be identical to another; standards of attention and quality can be established, but achieving "mass production" of services is impossible. Deliveries of the same service are performed by people and directed at other people, in different moments and places. Indivisibility: It is impossible to divide the creation and use of services. Services are perishable and cannot be saved or stored. Lack of ownership: Customers who utilize services cannot purchase ownership of them; instead, they only pay for the right to receive, use, or have access to those services. The following categories are used to group them in accordance with statistics on the trade in services on a global scale: Transportation Travel Other commercial services (such as royalties and license fees, computer and information services, insurance services, other business services, personal, cultural, and recreational activities).

The following duties must be paid in order to import automobiles: Ad valorem duty: 6% of the vehicle's CIF value Ad valorem duty and 19% value added tax (VAT) on the CIF value. Calculation illustration FOB Price: $25,000 US US $2,325 for ocean freight US $500 in insurance (calculated at 2%). VALUE CIF TOTAL: US $27,825 DUTIES: Ad valorem duty equals US $1,669.50 (6% of US $27,825). 19% of US$27,825+1,669.50 (VAT) is equal to US$5,603.96. (ad valorem duty plus VAT) TOTAL DUTIES TO BE PAID: US$7,273.46 ¿Cuáles son los impuestos adicionales vigentes a las bebidas alcohólicas y no alcohólicas? Which additional taxes, if any, are levied on alcoholic and non-alcoholic beverages? Alcoholic and non-alcoholic beverages may be subject to the following additional taxes in addition to the ad valorem duty and VAT, depending on the product: Artificial beverages, syrups, and mineral waters: 10% Cider, beer, champagne, and wines: 20.5% Spirits, including vermouth-like fortified or aromatized wines, pisco, whisky, brandy, and distilled beverages: 31.5% The rate will be 18% if the products listed in this category contain a high level of sugars in their nutritional composition, as defined in Article 5 of Law No. 20.606, which is regarded to be present when they have more than 15 grams (g) per 240 milliliters (ml) or an equivalent portion. The CIF value plus customs duties serves as the tax basis used to determine the additional tax. Calculation illustration importing bourbon Value CIF: US $1,000 Ad valorem duty: US $60.00 (6% of CIF value). Additional tax of US $333.90 (or 31.5% of US $1,060.00) US $201.40 (or 19% of US $1,060) for VAT TAXES TO BE PAID IN FULL: US $595.30 (Additional tax plus VAT and ad valorem duty)

Alcoholic and non-alcoholic beverages pay, in addition to the ad valorem duty and VAT, the following additional taxes, depending on the product: Mineral waters, artificial drinks and syrups: 10% Wines, champagne, cider and beers: 20.5% Liquors, piscos, whiskey, spirits and distillates, including fortified or flavored wines similar to vermouth: 31.5% In the event that the species indicated in this letter present the nutritional composition of high sugar content referred to in article 5 of Law No. 20,606 , which for these purposes will be considered existing when they have more than 15 grams (g) per 240 milliliters (ml) or equivalent portion, the rate will be 18%. The tax base on which the additional tax is calculated is the CIF value + customs duties. CALCULATION EXAMPLE Whiskey import ▪ CIF value: US $1,000.00 ▪ Ad valorem duty (6% on CIF value): US $60, 00 ▪ Additional tax (31.5% on US $1060.00) : US $ 333.9 ▪ VAT (19% on US$ 1060) : US $ 201.40< /span> TOTAL TAXES TO PAY US $ 595.3 (ad valorem duty + VAT + additional tax)

https://www.subrei.gob.cl/acuerdos-comerciales/acuerdos-comerciales-vigentes

The approach entails some industrialized countries offering a reduction or abolition of import tariffs on specific products supplied from developing countries. items on the so-called positive lists (items entitled to preferences) created by the nations giving preferences, subject to specific origin requirements specified by them, are those that are eligible for the GSP.

Due to the high level of specialization needed, determining the tariff code for a product can be a challenging task. Fresh fruits are an example of a simple product with an easy manufacturing process; however, when a product undergoes considerable transformation or processing that involves additional ingredients or components, the process becomes considerably more complex. It is strongly advised in these situations to seek the advice of an expert to ensure appropriate classification.

Subsidies might be either illegal or actionable. Subsidies that are dependant, either de facto or de jure, on export performance as either the single condition or among many circumstances, and subsidies that are contingent, either as the only condition or among several conditions, on the use of domestic over imported goods, are prohibited subsidies. Actionable Subsidies: According to the Agreement, the usage of these subsidies cannot have an unfavorable impact on the interests of other member nations. The Agreement only permits the possibility of applying Countervailing Measures when dealing with "specific" subsidies, which are defined as subsidies that are exclusively targeted to a company or specific industry or to a group of companies or industries in the granting country.

Usually, when we talk about dumping, we are referring to a scenario of worldwide price discrimination. The practice of dumping can be started by a firm itself or by state subsidies. Cases of dumping are typically more complex than the example mentioned, and a series of analyses must be carried out to determine the appropriate price in the exporting country's market ("normal value") and the appropriate price in the importing country's market ("export price"). For instance, we can identify a simple case of dumping by comparing the price of a product in two markets to determine if there is a price difference between them. A prior investigation of the facts and the confirmation that significant harm - or at least a threat - is being caused to a specific branch of national production or that it is impeding the establishment of a national production branch are necessary before any measures are taken. The aforementioned agreement explicitly establishes the conditions under which specific anti-dumping duties, which are added to the import duties, can be applied.

In order to protect a certain branch of domestic production from an increase in imports of a product that is causing or threatens to cause substantial harm to that branch of production, these provisions aim to temporarily prohibit imports of that product. The World Trade Organization's (WTO) Agreement on Safeguards establishes regulations to govern the application of these measures, outlining the circumstances in which they are acceptable and the terms in which they might be imposed. Increases in tariffs or quotas are a couple of examples of safeguard measures.

According to the GATS, there are four ways that the export of services can be developed, depending on the geographical presence of the service provider and the consumer at the time of the transaction: Mode 1: Cross-border supplyFor example, getting services like consulting, market research, distance learning, or architectural projects from overseas through email or conventional mail are examples of cross-border supply. Mode 2: Consumption abroadConsumers from one Member receive services in another Member's territory, such as tourists, patients, or students who travel to another country to receive the relevant services. Mode 3: Commercial presenceA foreign service provider creates a commercial presence (such as a subsidiary, branch, or office) to provide services in the territory of another Member, such as a foreign-owned bank, hotel chain, or construction business providing services abroad. Mode 4: Presence of Natural PersonsA foreign service provider provides services by the presence of natural persons from one Member in the territory of another Member, either as independent service providers (such as consultants) or as employees of service providers (such as consulting firms, hospitals, or construction firms). The General Agreement on Trade in Services (GATS) defines trade in services as the supply of services, which can be provided in accordance with these four defined modes. Member countries of the World Trade Organization (WTO) typically use a classification system to structure their commitments under the GATS. This system includes 12 sectors of basic services, each further subdivided into 160 subsectors. Recall that the word "Member" refers to nations that abide by the GATS under the WTO's supervision.

A group of businesses that participate in a cooperative endeavor with specific, well-defined goals at their own volition and while maintaining their legal and managerial freedom is said to be associative. The fact that incorporation is voluntary and the businesses keep their independence in terms of legal and decision-making are two of associativity's key traits. Companies join together to accomplish a shared objective, and it is crucial for the partners to share complimentary values and traits to ensure that the group is homogeneous, everyone participates equally, and everyone benefits. Among the justifications for a corporate associativity initiative are: lowering expenses. Increasing the rate of production. creating their own commercial and marketing channels. improving your negotiation skills. resources and potentials that are complementary. enhancing the competitive environment. Here are a few instances of how using an associativity model affects businesses: Financial: funding availability. Purchasing together. investing together. Organizational: generating scale economies. development and research. streamlining the production process. access to novel items, technology, or procedures. gaining more clout in negotiations. Commercialization: export alliances. establishing new markets. introducing new goods to the market. distribution and logistics. market analysis. information about commerce being exchanged. investing together. As seen, there are a number of benefits to creating associations, particularly for SMEs. These organizations should think about these advantages and get through the biggest barrier to this alternative—mental paradigms. This point is particularly sensitive for businesses, as there may be worries about losing confidentiality, especially when sharing markets, but the legal framework of this type of initiative protects the businesses' information. In associativity, agreements are voluntary and therefore flexible. Associativity does not affect the company's autonomy, either in management or legal aspects. Several associative patterns include: The many nodes in the value chain are vertically related, and subcontracting: Small or medium-sized businesses that concentrate their production on big clients. Strategic alliances: A horizontal association between rival businesses that collaborate on important tasks including marketing, purchasing, and research and development. Industrial districts are groups of businesses from the same industry that complement one another and agree to work closely together in a local organization. Business nuclei: Workgroups of entrepreneurs from related or unrelated industries that face similar issues come together to brainstorm solutions and exchange experiences. Service networks: A multidisciplinary team that works together to fully address the demands of potential clients. Purchase pools: A collection of people who get together to meet their shared need for a good or service, thereby strengthening their negotiating position with suppliers. Companies from the same industry band together to address an export project in consortia; this model includes a coordinator who directs the process of placing their offer abroad. Some advantages of this kind of association include cost reduction for the entire project, from management to promotion and commercialization. There is also the potential to improve the offer and negotiating power of participating companies, as well as to create a strong commercial image of cohesion.

The international organization in charge of promoting standardization around the world is called the International Organization for Standardization, or ISO. In order to improve the adaptation of goods, processes, and services to their intended purposes, as well as to prevent technical trade barriers and facilitate technological cooperation, standardization offers significant advantages, both for product manufacturers or service providers and for consumers or users. Some of these advantages are as follows (Source: INN): Justify production processes increase output potential Reduce your inventory. simplifying operations uniform minimum standards of quality encourage the use of interchangeable parts Use better equipment and machines. help with employee training lower the price of production Boost the company's productivity and competitiveness. The implementation of ISO standards is not mandatory, but compliance with these standards may be required by buyers or markets as these standards guarantee levels of quality that suppliers must meet. ISO certification implies an advantage for products or services over their competitors as it ensures that they meet the requirements and expectations of consumers or users in destination markets for exports. The most well-known ISO standards are ISO 9000 and ISO 14000, while there are numerous other sorts and iterations of them as well. The most representative ISO 9000 standards are ISO 9001:1994, ISO 9002:1994, and ISO 9003:1994, which together form the current ISO 9001:2000. This standard promotes the adoption of a process-based approach when developing, implementing, and improving a quality management system to enhance customer satisfaction by meeting their requirements. In order to establish tools and systems for internal production processes within a company or organization and the externalities that these processes have on the environment, ISO 14000 standards primarily focus on developing international environmental standards. This standard is a set of environmental management documents that, once implemented, will have an impact on all aspects of an organization. ¿Existe un esquema que me permita obtener una guía para analizar y definir los costos y el precio de exportación? 35. Is there a process I can use to get a manual for examining and establishing export costs and prices? To have a clearly defined minimum negotiable price while negotiating with the importer, it is crucial to build a cost and expected profitability scheme based on different levels of the marketing chain. This procedure should be viewed as dynamic rather than a static formula and requires study on various export expenses in order to help the exporter better define the export price. It is important to be aware of, study, and analyze these aspects to understand their impact on the product's pricing. These elements include fiscal reforms, trade agreements, and institutional changes. The following is a general framework for arranging details regarding the factors that determine the pricing (which may change based on the INCOTERM that was negotiated): (Production cost plus profit) Ex-works pricing in addition to the commission paid to the agent the price of inland transportation additionally, customs clearance costs FOB, FCA, port of shipping, or agreed point of departure pricing including loading and handling fees CFR, CPT: agreed-upon destination point for the products when shipped abroad plus primary transportation charges CIF: port or destination point in the foreign country + international transportation insurance Moreover, unloading fees the tariffs of the country of destination additionally, storage fees incurred during the nationalization period Goods delivered duty-paid at a destination point in the customer's country plus customs transit fees = DDP. The following cost structure can be used as a starting point, to which other lines can be added or subtracted depending on the conditions agreed upon with the customer and other costs unique to the product.

The four modalities in which an export of services could be developed depend on the territorial presence of the provider and the consumer at the time of the transaction. According to the above, the modalities are the following: Cross-Border Trade (Mode 1), from the territory of a Member to the territory of any other Member. Consumption Abroad (Mode 2), in the territory of a Member to a consumer of services of any other Member. Commercial Presence (Mode 3), by a service provider of a Member through commercial presence in the territory of any other Member. Presence of Natural Persons (Mode 4), by a service provider of a Member through the presence of natural persons of a Member in the territory of any other Member. Original text of the GATS, specifically Article I in which these modalities of export of services are defined. Examples of the four modes of export of services, being country X the importer: Mode 1: A user from country X receives consulting services, market studies, distance training or architectural projects (for example) from abroad through e-mail or conventional mail. Mode 2: Tourists, patients or students from country X who travel abroad to receive the corresponding services. Mode 3: Subsidiary, branch or representative office of a foreign owned and controlled company, such as a bank, a hotel chain or a construction company, for example, that provides the service in country X. Mode 4: In country X a foreigner provides a service, as an independent provider (such as a consultant), or as an employee of a service provider (such as a consultancy, hospital or construction company). The General Agreement on Trade in Services (GATS) applies to measures adopted by its Members that affect trade in services, which can be supplied according to the four modes already defined. For the purposes of this agreement, trade in services is defined as the supply of services. WTO Members routinely use a classification system to structure their commitments. This system comprises 12 basic service sectors: Services provided to companies (including professional and IT services) Communications services Construction and related engineering services Distribution services Education services Services related to the environment Financial services (including those related to insurance and banking) Social and health services Tourism and travel related services Recreational, cultural and sports services Transportation services Other services not included in other headings In addition, these sectors are subdivided into 160 subsectors, with the objective that any service sector can be classified and included in a Member's list of commitments, which are presented under the GATS framework and are subject to specific obligations market access and national treatment. Only certain terms are excepted under the GATS Annex on Air Transport Services, excluding measures that affect air traffic rights and services directly related to their exercise, a measure that is constantly reviewed.Complete list of services classification by sector (English). * Member is referred to when referring to one of the countries that adhere to the GATS under the umbrella of the World Trade Organization.Source: World Trade Organization (WTO).

The import procedure can be separated into two systems based on the value of the goods: Documents required for this process include the bill of lading, commercial invoice, notarized power of attorney, and any applicable certifications. a) The process can be completed personally at the respective Customs office if the goods are non-commercial and their value is up to US$4,050 FOB, or if they are commercial and their value is up to US$3,000. The required documents for this process include the bill of lading, original commercial invoice, packing list, and a mandate. Some operations may require additional documents such as a certificate of origin, a sworn declaration from the importer regarding the price of the goods, insurance certificate, expense note, permits or certifications. b) If the value of the goods exceeds US$3,000 FOB, it is necessary to hire a customs agent.

Depending on the degree of dimensions of international trade that trade agreements cover, they are classified into four different categories. The categories are: Strategic Partnership Agreements: It is an intermediate-scope bilateral agreement between a free trade agreement and a partial-scope agreement, since in addition to opening markets tariffs it can address agreements on other issues not directly commercially related, such as cooperation in scientific, technological, social and educational matters. Free Trade Agreements: It is a bilateral agreement that seeks to create a free trade zone that guarantees the free circulation of goods, services and capital, through a harmonization of policies and relevant legal regulations . These must ensure comparable or common competitive bases in areas that are not directly commercial, but that may have a high competitive impact (environment, health and plant health, technical barriers to trade, intellectual property, dispute resolution, legal certainty, etc.).< /span> Economic Complementation Agreements (ACE): It is the denomination used by Latin American countries in the bilateral agreements that they enter into with each other to reciprocally open their merchandise markets, which are registered in the legal framework of the Latin American Integration Association (ALADI). The ACEs aim at inclusive objectives of opening markets greater than the partial scope agreements. Partial Scope Agreements: It is the most basic type of bilateral agreement on tariff matters that seeks to partially free trade in limited lists of products. It is normally conceived as a first stage in a larger long-term opening process.

Depending on the type, the following taxes may apply to tobacco imports: tobacco: 52.6% cigarettes: 0.0010304240 UTM specific tax per cigarette, plus a 30% sales tax per pack, box, or wrapper (including taxes). tobacco produced: 59.7% Amounts have been adjusted by Circular Letter No. 343 from December 21, 2012. The exact tobacco tax is provided with the calculating procedure listed below: Factor x U.T.M. = 4 decimal truncation Results truncated to nine decimals when divided by T.C. Result x Amount of Goods (Item Note Related to Code 86) = Results are entered in account code 295 and rounded to two decimals. Example: smokes in the amount of 3,000,000 (Item Note 86) b) U.T.M. $40,206.00 c) T.C. $481.69 0.000128803 factor 4.1786 (truncated to 4 decimals) = 0.000128803 x 40,206.00 5.1786 / 481.69 = 0.010750897 (9 decimals clipped) Account number 295: 0.010750897 x 3,000,000 = US$ 32,252.69 The other steps in the process for determining the cigarette tax set forth in Resolution No. 4125 of August 31, 2010, remain the same. TAXES TO BE PAID IN FULL: US$692.60

The National Customs Service's Resolution Exenta N° 002.511 of June 25, 2007, states that the following conditions must be satisfied in order for a service to be categorized as an export by this service in accordance with the terms of item 16 of letter E of article 12 of DL N° 825 of 1974: Individuals without a domicile or place of residence in Chile must receive the service there. Except for services supplied to commodities passing through the country, the service shall be used only outside the country. The service's value and reality must be able to be independently verified. Additionally, the service provider must carry out the necessary activity in Chile, either directly through a corporation covered by article 41D of the Income Tax Law, or through a domicile or resident in Chile.

Services that are specified in the "List of Services Qualified for Export," which is regarded as a part of the decree, are qualified for export in line with the terms of Article 12, Section E, Number 16 of Decree Law No. 825 of 1974. Despite not requiring a new qualification, the specified services must nonetheless adhere to the specifications outlined in Section 1 of Resolution Exenta No. 002.511. You can acquire the necessary form and filling instructions to request the qualification of services that are not on this list by submitting a well-supported application to the Customs Service.

With an additional 15% tax (on the item's customs value plus ad valorem duty): Items crafted from ivory, platinum, and gold Natural or artificial gemstones for jewelry according to Internal Revenue Service classification, fine carpets and tapestries Fine furs, whether produced or not, as defined by the Internal Revenue Service Caviar and alternatives Projectiles and equipment for air or gas-compressed guns, excluding those used for underwater hunting with an additional 50% tax (on the item's customs value plus the ad valorem duty): Fireworks and other pyrotechnic objects, excluding those used for mining, agriculture, or illuminating signaling, are prohibited. Additional taxes apply to: Alcoholic drinks tobacco items

The relevant national authorities set the required conditions that products must adhere to in order to reach the target markets. These regulations are primarily hygienic in nature. Markets may also have quality and technical requirements that are not always mandatory but, in practice, if not met, the market may shut its doors to those products. This can be due to consumer preferences, high standards set by competitors, or incompatibility with a country's technical requirements (e.g., electrical voltage and plug type for electrical appliances). The following conditions must be fulfilled: Phytosanitary or sanitary laws Technical guidelines Exemplary standards Environmental regulations Requirements for containers, packaging, and labeling, among others.

Generally speaking, imports are liable to paying an ad valorem duty of 6% on their CIF value (cost of the goods plus the cost of the insurance plus the cost of the freight), as well as VAT of 19% on their CIF value plus the ad valorem duty. A SIMPLE CALCULATION IS: CIF Value: $1000 USD Ad valorem duty ($60.00) (6% of 1,000). $1,060.00 + VAT (19%) = US$201.40 CUSTOMS TAXES IN FULL: US$261.40 In other cases, items may be subject to unique duties or exemptions, according to the defined ranges (e.g., wheat and sugar), or they may be subject to special taxes depending on the nature of the goods, based on the same tax base (CIF value + ad valorem duty). However, exceptions are provided in Rule 3 of the National Customs Tariff. Used products, when permitted for importation, suffer an additional 50% ad valorem charge, in addition to the taxes they are liable to based on their type. Goods subject to Law No. 20.690 or those made in a nation with which Chile has a trade agreement may be free from paying ad valorem duty entirely or subject to a reduction in value.

However, the importation of books, pamphlets, newspapers, magazines, and printed musical compositions that are produced in paperback and common binding by businesses based in the signatory nations to the Uruguayan Treaty—as long as they are not luxury editions—is exempt from paying the ad valorem duty under Article 1 of the said Treaty (Decree Ministry of Foreign Affairs No. 656/49). Books that are of an advertising nature or that attempt to conduct propaganda impacting the political, social, or moral order of the signatory countries are expressly prohibited from receiving this benefit under the Convention.

The goal of Incoterms is to clearly specify the costs that the exporter must bear, enabling their identification and subsequent inclusion in the export price of the goods. Indicating the obligations and rights between the seller or exporter and the buyer or importer, such as the point of delivery, the mode of transportation, the inclusion or exclusion of insurance, and responsibility for documentation, among other points, these terms are based on globally accepted rules due to their accuracy, acceptance, and use. Incoterms is the shorthand for "International Commercial Terms," which are provided by the Paris-based International Chamber of Commerce (ICC). A revised version, endorsed by the International Chamber of Commerce (ICC), which differed significantly from the 2000 version, went into force in January 2011.

A pro-forma invoice is a preliminary invoice issued by the exporter to the importer to give them a clear understanding of the price they must pay for the intended transaction. It contains the same information as a firm offer, with the exception of the validity period, and includes information on the type of quotation, payment method, payment instrument, shipping method, delivery date, and the validity of its terms. The importer typically uses this document to begin the process of obtaining import licenses and permits or to open a letter of credit. It frequently includes statements that the importer requires due to regulations in their country (for example, that the quoted prices are standard for all export markets).

Tariffs, quotas, reference prices, import licenses, and sanitary and phytosanitary permits are a few types of trade barriers. Authorities in various markets have preferred tariffs and quotas as the most obvious, significant-impact measures; however, in recent years, due to the global trend towards tariff liberalization, non-tariff barriers have increased, such as the implementation of overly strict regulations for some products. With the intention of safeguarding public health (e.g., sanitary certificates to ensure the quality and safety of products), supporting domestic exporters to compete on an equal footing with imported products, ensuring public safety by regulating or prohibiting the entry of dangerous products, collecting money for state plans, and promoting domestic production, these measures aim to protect national economies and societies. However, these measures can have some negative effects. Instances of trade restrictions: Certifications Tariffs Quotas Import permits Rules for labeling Health restrictions Obtaining licenses for sanitary and phytosanitary purposes Authorizations for import, etc

In an export operation, there are four distinct modalities for setting sales conditions, and they are connected to how prices are agreed upon. Firm Sale: This method is applicable for any kind of goods, and it involves the exporter and the importer coming to an unchangeable and definitive agreement on the price for the items. Products that can undergo changes during transportation, such as wood, fruit, seeds, etc., are typically traded under this modalities, where the final price of the goods is subject to the fulfillment of certain conditions agreed upon between the exporter and the importer. The final price will depend on the current international market prices at the time of commercialization. In a free consignment sale, the value of the merchandise is merely indicative as it is sent to an agent or consignee abroad for reception and sale in accordance with the instructions provided by the consignor or as agreed upon by the parties. The commercial invoice is issued on the date of shipment for the minimum firm value, and once the final price is determined, a new invoice must be issued for the remaining obtained value. Consignment with Minimum Firm: Involves setting a minimum value for the merchandise under the firm sale modality. The final value is subject to the conditions agreed upon between the exporter and the buyer.

The advantages of a service being eligible for export are outlined in DL N° 825 of 1974 and include the following: Exemption from paying value-added tax (VAT) on money received in exchange for a service. VAT paid on purchases of goods or services required to complete the export is recouped. Refund of customs charges and additional taxes that were paid on imported raw materials, partially manufactured goods, and parts or components that were used or consumed during the manufacturing of the service that would be exported.

The importation of machines and data processing equipment is exempt from customs duties due to the Most Favored Nation (MFN) clause under article C-07 of the Chile-Canada Free Trade Agreement (FTA), regardless of the origin or source of the goods, as long as the countries involved are members of the World Trade Organization (WTO). In general, computers are subject to the ad valorem duty (6%) in addition to the Value Added Tax (VAT) (19%). The products that benefit from this exemption are identified through specific tariff codes; the most recent version of these codes can be found in Circular Letter No. 461 dated 24.11.2016, but they may be subject to changes as the tariff nomenclature evolves. As a result, machines and data processing equipment are only subject to the VAT (19%).

By having insurance in place, the risk is transferred to another party through the contract, which entails contractual agreements (policies) in which the insurer, upon payment of a premium (insurance cost), promises to reimburse the insured or provide specific services in the event of pre-agreed accidental losses or damages (insured risks) during the policy's duration. For cargo insurance, the insurable value typically consists of the cost price (invoice value) of the goods, plus freight and other expenses, along with a percentage for the expected profit. Insurance can cover a variety of aspects in export operations, such as goods (cargo), transportation (by road, sea, or air), and even commercial and political risks (e.g., payment delays, civil wars), among others. Depending on the type of product, various insurance policies can offer differing levels of coverage, ranging from "all-risk" coverage to more affordable ones with less coverage. The following are the fundamental cargo insurance exclusions: The advantage for the insured is that, in the event of a claim, the insurer must demonstrate the application of one of the named exclusions in the policy to reject the claim.Clause A: Provides coverage against "all risks," with specific exclusions mentioned in the policy.This is the most comprehensive clause. The insured must demonstrate, at the time of the claim, that the loss or damage to the cargo was caused by one of the covered hazards. Clause B: Offers standard coverage with "named perils with exclusions." This clause is frequently used for maritime transportation. It is advised for goods with low commercial value. Clause C: The most minimal coverage, it primarily covers risks stemming from significant accidents typical of navigation. Depending on the clause chosen, numerous occurrences like as fire, explosion, grounding, sinking, collision, cargo overboard, theft, and others are covered risks under these provisions. You should get quotations for export insurance from different insurance providers to discover the optimum price-to-coverage ratio that fits both your needs and the needs of the goods being sent.

This type of trade barrier is regulated in the context of agreements made under the auspices of the World Trade Organization (WTO), in order to protect the fundamental principles of the Organization, which guarantee non-discriminatory treatment that a certain country provides to another WTO member country in relation to its nationals (national treatment). Under contrast to an implemented tariff, which can be lower than what a member nation committed to imposing, a "consolidated tariff" is a tariff for which there is a legal commitment not to raise it above the level pledged under the WTO Agreement.

In terms of import tariffs, most favored nation treatment simply means that any benefit, privilege, or immunity granted to a product coming from or going to another country by one GATT contracting party will be immediately and unconditionally extended to all comparable products coming from or going to the territories of all other contracting parties. The term "MFN tariff" refers to a duty that is imposed on all WTO members. The approach entails some industrialized countries offering a reduction or abolition of import tariffs on specific products supplied from developing countries. Items on the so-called positive lists (items entitled to preferences) created by the nations giving preferences, subject to specific origin requirements specified by them, are those that are eligible for the GSP.

The strategy entails some wealthy countries reducing or completely eliminating import taxes on a select range of exports from developing nations. items on the so-called positive lists (items entitled to preferences) created by the awarding nations, subject to specific origin requirements specified by them, are those that benefit from the SGP.

If it is not specified in the list, the Resolution of the service qualification should be attached in addition to the DUS (Documento nico de Salida - Single Exit Document). The commercial invoice for the service is another document that needs to be submitted.

A Customs Agent is an auxiliary professional of the customs function, as established by the Customs Chamber and the Customs Ordinance (Article 195). The Customs Agent is a private professional who is not employed by the public administration; rather, they work as collaborators of the State in the control of the entry and exit of goods. The license granted to the Customs Agent authorizes them to provide services to third parties as a representative in the clearance of goods.

The certificate of origin is a document that enables the exporter to take advantage of the advantages obtained via the different agreements Chile has signed. Chilean goods benefit from the Generalized System of Preferences (SGP) that industrialized economies give because Chile is a developing country. The origin of the exported goods must be certified through a Certificate of Origin issued by an official department or a trade association with legal personality and authorized by the government of the exporting country in order to benefit from the tariff preferences obtained in the agreements signed by Chile; however, exports under the Free Trade Agreements with Canada, Mexico, Central America, the United States, South Korea, and P4 are exempt from this requirement as they allow for origin certification.

In order to negotiate with the importer, it is essential to build a scheme of costs and expected profitability from different levels of the marketing chain, in order to have a well-defined minimum negotiable price. It is necessary to carry out an investigation on the different export costs, which will allow the exporter to better define the export price. This process should be considered as dynamic and not as a formula or something static. There are tax reforms, trade agreements, institutional reforms that affect the costs of the company; it is important to know, review and analyze them to be clear about the effect they may have on the price of a product. The following is a guiding scheme to organize the information on the elements that affect the price (it varies according to the terms in which it is negotiated, that is, the INCOTERM used): Spot price (production cost plus margin) plus Agent commission more transportation within the country plus customs clearance costs plus stowage charges = FOB, FCA., port of shipment or agreed point of departure price plus main transport = CFR price, CPT: agreed place of destination of the merchandise abroad plus international transport insurance = CIF price: port or place of destination in the foreign country plus landing costs plus destination country duties plus storage costs in the nationalization period plus cost of transportation from customs to the point of destination = DDP Price; merchandise delivered duty-free at a destination point in the customer's country. The previous scheme can be used as a basic cost structure, in which lines can be added or eliminated according to the terms that are negotiated with the client and additional costs of the product.

When a product is exported between parties to a Free Trade Agreement, its eligibility for preferential tariff treatment is determined by the rules of origin. The World Trade Organization (WTO) regulates the international rules to establish the origin of traded goods through an Agreement on Rules of Origin. The objective is to prevent goods produced in third countries from receiving preferential tariff treatment when they have only transited or undergone minimal processing in the participating countries. Based on the standards outlined in the WTO Agreement, bilateral agreements specify the exact rules of origin that each party applies to trade with preferential treatment. Depending on the Agreement and the type of product, officials from governments and trade associations provide certificates of origin. Governmental Organizations The ALADI/MERCOSUR/PERU/SGP countries may receive certificates of origin from Chilean Copper Commission (COCHILCO), which has that authority. Authorized to grant certificates of origin for nations within ALADI/MERCOSUR/PERU/SGP is the National Fisheries Service (SERNAPESCA). The ALADI/MERCOSUR/PERU/SGP countries' Agricultural and Livestock Service (SAG) is authorized to issue certificates of origin for those nations. A certificate of origin may be issued by the General Directorate of International Economic Relations (DIRECON) for the European Union and EFTA. Entities in a trade association: For countries in ALADI/MERCOSUR/PERU/SGP, the National Chamber of Commerce is permitted to issue certificates of origin (only for agricultural and raw wood goods). For countries in ALADI/MERCOSUR/PERU/SGP, the Society of Industrial Development (SOFOFA) is allowed to issue certificates of origin (only for industrial products). The agreements with the United States, Canada, Mexico, South Korea, and Central America allow for self-certification, where a sworn declaration by the exporting agent is sufficient to recognize the product's origin and grant it the corresponding preferential treatment. However, beyond the official certification obligations, the agreements leave room for flexibility in these procedures.

Furthermore, in the Chilean context, there are some perks for exporters of goods and services to promote export activities. When exporting goods, they are exempt from any kind of tax or customs charge.

Yes, we provide a variety of solutions for cargo insurance to safeguard your financial investment and provide you with peace of mind during the overseas trade process.

Although we have a network of business partners spread across several nations, our main offices are in Chile. This makes it possible for us to compete successfully in numerous foreign marketplaces.

Simply contact us by phone, email, or through our online contact form. To better understand your needs and provide you with a service proposal, a member of our team will get in touch with you.

We are working on a cutting-edge web platform that will streamline and improve the management of your global business. Join our email to receive updates on this fascinating development.

In addition to supplier discovery and evaluation, thorough logistics management, accounting audit, shipping insurance, legal services, and strategic advising, we also provide a full variety of other foreign trade services. We'll soon be providing a cutting-edge web platform for organizing global operations as well.

At TutyComex, we want to perform more than just serve as an intermediary. We see ourselves as a strategic partner for our clients, offering them individualized solutions and all-encompassing support to help them develop and prosper in the complicated world of global trade.

Yes, TutyComex handles every facet of international trade, from finding suppliers to shipping the goods. Our goal is to simplify international business for our clients.