Chile Import Duty Rates, Tariffs & Duty Calculations Explained

Import duty in Chile is a tax levied on goods imported into the country. The duty rates vary by product and are determined by the Chilean customs authorities. In addition to import duty, imported goods are also subject to VAT (Value-Added Tax) of 19%, which is levied on the sum of the import duty and the value of the goods. The total cost of importing goods into Chile is therefore the sum of the import duty, VAT, and other applicable taxes and fees, all of which are payable in CLP (Chilean Pesos).

The import duty in Chile is calculated using either the ad valorem method or the specific method. The ad valorem method calculates the duty as a percentage of the value of the goods, while the specific method calculates the duty as a fixed amount per unit of the goods. The method used to calculate the duty varies by product and is determined by the Chilean customs authorities. The value of the goods is typically determined by the transaction value, which is the price paid or payable for the goods.

HS codes (Harmonized System codes) play a crucial role in the calculation of import duty in Chile. The HS code is a unique code assigned to each product and is used to classify the product for customs purposes. The HS code determines the duty rate applicable to the product, as well as any restrictions or prohibitions on the importation of the product. It is therefore essential to ensure that the correct HS code is used when declaring goods for import into Chile.

The preferential origin of goods can have a significant impact on the import duty payable in Chile. Goods that originate from countries with which Chile has a free trade agreement or preferential trade agreement may be eligible for reduced or zero duty rates. To qualify for preferential treatment, the goods must meet the rules of origin specified in the relevant agreement, which typically require that the goods be wholly obtained or substantially transformed in the country of origin.

To calculate the import duty payable on goods imported into Chile, the following steps can be followed: (1) determine the HS code of the goods; (2) determine the value of the goods (typically the transaction value); (3) determine the duty rate applicable to the goods (which varies by product); (4) calculate the import duty using either the ad valorem or specific method; (5) add VAT (19%) to the sum of the import duty and the value of the goods; and (6) pay the total amount due in CLP (Chilean Pesos).