Chile

The Australia-Chile Free Trade Agreement (ACFTA) was executed on 30 July 2008 and entered into force on 6 March 2009.

The ACFTA has eliminated all tariffs on Australian exports except one – a tariff on sugar products of 6%.

The ACFTA was designed to open the market for Australian goods, services and investment including coal, meat, wine, dairy products, education, mining, engineering and professional services.

Since the ACFTA entered into force, there has been a large increase in the number of Australian companies operating in Chile and Latin America more broadly. There are approximately 120 Australian companies operating in Chile. More than half of these companies are in the mining industry.

Two-way trade in goods and services totalled $1.8 billion in 2013-14. Two-way trade in services totalled $413 million. Exports from Australia to Chile totalled $539 million.

For detailed FTA information, please visit: http://dfat.gov.au/trade/agreements/aclfta/Pages/australia-chile-fta.aspx

Date in force

  • 6 March 2009

Direct benefits

No tariffs except a tariff on sugar products of 6%.

Below you will find a way to look up the tariffs associated with a SELECTION of popular Australian exports. PLEASE NOTE: this is not a tariff calculator OR an exhaustive list. We recommend obtaining professional advice for products not listed here.

Indirect benefits

Open services and investment regimes.

High standards of IP protection for patents, trademarks, geographical indications and copyright.

Reduced withholding taxes on dividend, interest and royalty payments.

Subject to certain thresholds, the Chilean Government procurements market will be open to Australian companies.

Certificate of Origin

Tariff concessions under the ACFTA are available to goods that "originate" in Australia or Australia and Chile.

Goods must be either wholly obtained in Australia, produced in Australia from originating materials, or produced in Chile and Australia from non-originating materials, or a combination of originating and non-originating materials.

The non-originating materials must have undergone a change in tariff classification, or the non-originating materials that have not undergone a change in tariff classification must not exceed 10% of the value of the goods.

Some goods must meet the minimum regional value content.

Doing business with Chile

There are many things to consider before embarking upon an export journey. Doing business in Chile presents some unique challenges, but there are a number of key areas to consider before doing any international business.

The areas to consider are:

Business activities and risks

  • Location
  • Legal Structure
  • Direct tax
  • Funding
  • Repatriation of profits
  • Transfer pricing
  • Withholding tax
  • Indirect tax
  • Staffing

For a full checklist that will put you on the right path to doing business in the Chile, click HERE.

Want to know more? Visit the Export Council of Australia’s website.