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APEC RULES OF ORIGIN - CHILE

2.4 CHILE: PREFERENTIAL RULES OF ORIGIN

2.4.1 BASIS OF SUBSTANTIAL TRANSFORMATION CRITERIA

In some cases, a value-added basis is considered, with a threshold of 50 percent or less of the FOB value of the exported good attributable to CIF value of materials of third party countries.

In Chile only one trade initiative where rules of origin appear is in force. This is within the framework of the Latin American Integration Association, LAIA (Asociación Latino Americana de Integración, ALADI), whose function is the verification of origin as a requirement for being granted the benefit of preferential treatment.

Argentina, Bolivia, Brazil, Colombia, Chile, Ecuador, Paraguay, Mexico, Peru, Uruguay and Venezuela.

At present Chile charges customs duties at a general rate of 11 percent. With LAIA, bilateral agreements are allowed. So preferential rates range from 0 to about 11 percent.

The LAIA Treaty was approved by Decree 568, of the Foreign Affairs Ministry, published on 24 Augus 1981.

No booklets on rules of origin and related procedures are available.

There is a standard form, adopted by LAIA, which is a statement to prove that origin requirements are met. It must be completed by the final producer or the exporter and certified by a public body or an authorized union in the exporting country.

2.4.5 Rules of Origin

Criteria contained in Resolution 78 depend on the goods' special status, as follows:

• completely produced in an LAIA country, with material from an LAIA country;
  
• certain convened headings, on account of being produced in LAIA territories - for example, mineral, vegetal, and animal products (including hunting and fishing), sea products extracted from its territorial or patrimonial waters or exclusive zones, by ships with LAIA flags and products which acquire final form through operations or processes carried out in LAIA territory;
  
• production in LAIA territory with materials from non-participating countries, if the transformation in the LAIA country confers new individuality to a product, resulting in classification under a different heading;
  
• simple assembling processes, assembly, packing, splitting in bundles, parts or volume, selection and classification, markings, composition or assortments or other processes which do not imply substantial transformation in terms of classification under a different heading of non member countries, do not confer origin.
  
• assembled in a LAIA country, with materials from a LAIA country and from a third country, if the CIF value of the materials of the third country is less than 50 percent FOB value of the exported product.

Direct shipment is required for preferential treatment. Transit through non-LAIA countries is allowed in exceptional cases.

Besides the abovementioned statement and its authentication, the importing country may ask the certifying body for additional data.

The Chilean Customs Service maintains internal customs review procedures.

Claudio Sepúlveda V.
International Affairs Coordinator
Dirección Nacional de Aduanas
Plaza Sotomayor 60, Valparaíso, Chile

Tel: 56-32-217-911 ext. 127
Fax: 56-32-254-035

Gastón Aravena S. In charge of APEC
Dirección Nacional de Aduanas
Plaza Sotomayor 60, Valparaíso, Chile

Tel: 56-32-217-911 ext. 236
Fax: 56-32-254-035