How to import to Chile?

Chile was the first Latin American country to establish diplomatic relations with China and the first one to sign a Free Trade Agreement (FTA) with China, commercial relations between the two countries are really narrow and for a long time that importing from China has become not only an exclusive issue for large companies but increasingly common for small entrepreneurs as well, because it allows them to acquire directly a variety of products at more competitive prices than local resellers.

So discover with us in this article the requirements of how to make imports from China to Chile to expand your product range and open more possibilities for your entrepreneurship.

Two import systems

First of all, it is important to introduce the concept Fob Value (Free on Board) since the import process to Chile has two systems depending on this value that is the purchase value that appears in the commercial invoice issued by the supplier, not including the international freight or insurance.
https://www.chinalatinagent.com/en/news/What-are-Incoterms-EXW-FOB-and-CIF-are-the-most-common-ones.html

1.For merchandise with a FOB value of less than US$ 1000
If your products have an invoiced FOB value of less than US $ 1000, the import will be a simplified process that you can perform yourself in person before the respective customs, presenting the following documentation:

Original shipping document according to the transport form: Bill of Lading, BL (by boat) or Airway Bill, AWB (by plane);
Original commercial invoice;
Insurance policy with the amount of the premium paid (if applicable);
Notarial, in the event that the person who processing is a third party and not the same consignee/importer;
Certifications or approval when necessary for particular merchandise.

2.For merchandise with a FOB value of more than US$ 1000
In this case, being the importer you must hire a customs agent, to whom you will provide the basic documents to submit the declaration before the SCN (National Customs Service).

Regarding these basic documents, it is necessary to specify that there are some that are mandatory for any commercial import, and others that are required only on certain occasions.

Mandatory documents:
The aforementioned BL or AWB, which demonstrates the property of the merchandise by the recipient;
Original commercial invoice, which accredits merchandise as an object of sales and its values;
Insurance policy with the amount of the premium paid (if applicable);
Declaration of the importer on the price of goods, a form that must be delivered to the customs agent;
Mandate constituted by the exclusive endorsement of the original shipping document.

There is some additional documentation that importers can be requested, depending on the products they choose to import. It is important to confirm with your customs agent on this point.

Documents required only for certain import operations:
Certificate of origin, in the event that the merchandise is eligible for tariff exemption of preferences for commercial agreements;
Packaging list, when it comes to merchandise packed in full containers;
Expenditure note, when these are not included in the commercial invoice, for example, when the purchase of the merchandise has an EXW incoterm;
Permits, visas, certifications or approval , according to the type of imported merchandise.

What products can I import to Chile?

Every merchandise can be imported to Chile unless the legislation specifies that some categories of goods require prior approval such as firearms, explosives, alcoholic beverages, vinegar, alcohols, vegetables, animals, fertilizers, pesticides, pharmaceutical products, radioactive, human remains, Flora and fauna samples, among others. The Chilean Customs Site includes a complete list of these products, together with the organizations that issue the certification or approval of each article.
https://www.aduana.cl/productos-que-requieren-certificado-o-visto-bueno/aduana/2018-12-13/161927.html

Customs Inspection

We must bear in mind that sometimes some imports are randomly selected for customs inspection in airports or ports by checking the documents or with X -rays to verify the nature, quantity, value and tariff classification of the products, in a maximum of 5 days, period after which the shipping company or the agency that processes the import has the duty to inform the consignee if the imported products require any additional certificate or approval for entry to the Chilean territory.

To avoid setbacks in the delivery of your products, as we have already noticed at the beginning, it is essential that you consult in advance which goods require the "approval" of other organisms, such as the Agricultural and Livestock Service (SAG), Undersecretariat of Fisheries or the General Directorate of National Mobilization, among others.

For example, in the health area highlights the retention of products for not having approval of the Institute of Public Health (ISP), such as cosmetics, body cream creams, facial treatments, nail polish, medications, etc.

What tariffs and other taxes do I have to pay when importing?
Taxes
The ad valorem is 6%, calculated on the CIF value (the cost + insurance + international freight). In addition, there is VAT (Value Added Tax) of 19%, calculated on the CIF and the ad valorem tariff.
https://www.chinalatinagent.com/news/Que-son-los-Incoterms-EXW-FOB-y-CIF-son-los-mas-comunes.html

Example of calculation:
-Valor CIF of the product: US$ 1000
-AD VALEM (6% of US$ 1000): US$ 60
-IVA (19% of US$ 1060): US$ 201.4
Total Customs Taxes: US$ 261.4

It should be noted that when the product that matters is within the framework of the bilateral agreement between Chile and China, the AD VALEM tax can be reduced or exempted. 

And if it is an occasional purchase, without a commercial nature, with a value of less than 30 dollars, it will be free of the payment of tariffs and taxes.

Additional taxes
These apply to certain products depending on the regulations with the reason for protecting Chilean industries or the well -being of the population.

Additional 15%tax: gold, platinum, ivory, jewelry, natural or synthetic stones, high -end carpets, high -end upholstery, high -end skins, canned caviar and their substitutes, air or compressed gas weapons , its accessories and projectiles. Consult more information on the SII site (Internal Revenue Service).
https://www.sii.cl//aprenda_sobre_impuestos/impuestos/impuestos_indirectos.htm
Additional 15% : gold, platinum, ivory, jewelry, natural or synthetic stones, high -end carpets, high -end upholstery, high -end skins, canned caviar and their substitutes, air or compressed gas weapons, its accessories and projectiles. Consult more information on the SII site (Internal Revenue Service).
Additional 50%: pyrotechnic articles such as fireworks, firecrackers, with the exception of products for industrial, mining, light or agricultural signaling.
Other additional taxes: alcoholic beverages, luxury drinks and tobacco.
For second-hand goods that receive authorization, an additional position of 3% on its CIF value is applied.

When and where should I pay taxes?

The payment of customs rights can be carried out electronically and in physical entities, banks, authorized financial institutions, General Treasury of the Republic or postal branches (in cases of postal shipping).

You will have 15 days to pay them, counted from the day you receive the merchandise and the declaration of entry is issued. After the deadline assigned, additional charges will be applied due to the payment delay. In addition, if the merchandise is not possible to withdraw from the customs warehouse after 90 days, it is presumed that it is abbot and additional rates will be applied to the taxes.

How do I proceed with the customs clearance when I ship the merchandise via Courier?

If you make a purchase that is sent by the Courier company (DHL/UPS/FEDEX) and the amount of the products does not exceed US$ 3000, the Courier company will be in charge of the customs clearance and will pay the taxes on behalf of you, which will be added to the final invoice of the delivery service.

In the event that the purchase exceeds US$ 3000, then it will be mandatory for you to hire a customs agent for the nationalization of the merchandise.

Finally, it is important to know that a good logistics company and purchasing agent will guarantee you to carry out the import process from China to your country safely and quickly. As an international carrier and purchasing agent in China, we source, purchase, collect, check, repack, warehousing and deliver your goods from the factory in China to your home.

If you have more doubts about how to make imports from China to your country or need any advice or help in this regard, contact China-Latin right now!