17.6 Million (2016)*
Chilean Peso (CLP)
*Source: The CIA World Factbook
The U.S.’ 23rd largest goods export market in 2016
U.S. is 2nd largest trading partner
United States – Chile Free Trade Agreement implemented in 2004
U.S. exported US$12.9 billion in goods to Chile (2016)
Ranked 1st in Latin America for economic competitiveness
Top Industry Export Opportunities
There are 4.9 million motorized vehicles in Chile and that number is expected to surpass 5 million in 2017. The ratio of used car sales to new car sales increased from 2.97 to 3.40 between 2015 and 2016. This fact directly benefits the sales of auto parts for the maintenance of used vehicles. There is no significant local production of auto parts and many parts and accessories are imported. U.S. parts lead the market and accounted for approximately 30% of the auto parts imported by Chile in 2016. In the market for heavy vehicles, American brands are the top sellers. Opportunities in the market include: engine kits, differential gears, clutches, rings, accessories, lights, pneumatic suspension systems, batteries, filters, and oil. Other successful parts include those that wear out, such as joints, rods, and fifth wheels. In the market for light vehicles opportunities include: engine components, clutches, mufflers, tires, catalytic converters, lights, gearboxes, air filters, brake components, and windshields.
Chile is the world’s #1 copper producer and has world-class mining infrastructure and operations. Not surprisingly, the mining sector plays an enormous and important role to Chile’s economy, accounting for about 10% of GDP and about 50% of Chilean exports. The U.S. remains the single largest supplier of mining parts and equipment in Chile, with a market share of around 22%. Opportunities in the market include: crushers, grinders, off-road trucks (240-440 tons), cabbed truck chassis (+50 tons), parts for rock cutters, 360-degree revolving excavators, cranes, screening machines, water treatment and desalination systems, air pollution abatement, mine closure, carbon footprint reduction, and dust control technology, arsenic management, and wear-resistant materials.
Safety and Security Equipment
The safety and security industry in Chile grew approximately 2% during 2015 and according to industry contacts the same growth is expected for 2016. Although the incidence of terrorist activity and civil disturbance is generally considered low in Chile, security-related incidents that continue to be present include: home break-ins, and street crime. American products in the safety and security industry sector have a strong presence in Chile, due to the positive, longstanding U.S. reputation for quality, technical service, and after-sales support, which offset the perception of U.S. products being more expensive than products from Asia. Opportunities in the market include: access control, biometric equipment, parking systems, fire detectors, sprinkler systems, extrication equipment, firefighting suits, fire trucks, alarms and monitoring, CCTV, outdoor perimeter protection, locks and safes, sensors, vehicle protection devices, safety gear for industrial use, and scanning equipment for drug detection.
Trade Regulations & Customs Information
Import Tariffs: Tariffs on 90% of U.S. exports to Chile were eliminated immediately. Starting January 1, 2015, all trade between the U.S. and Chile became duty-free (i.e. zero tariff).
Import Duty: The U.S.-Chile FTA further addressed some other non-tariff import taxes that Chile applied. For example, under the FTA, Chile eliminated the 50% duty surcharge applied to used goods originating from the United States. In addition, Chile agreed to phase out its luxury tax on U.S.-made automobiles. As of January 2007, the tax was eliminated completely. All imports are subject to the same 19% Value Added Tax (IVA) imposed on domestic goods.
Import Requirements and Documentation: The commercial forms used by both local importers and exporters are commercial invoices, certificates of origin, bills of lading, freight insurance, and packing lists. Special permission, certificates, and approval documents, such as sanitary and phytosanitary certificates, are required for most agricultural products and in special cases for industrial products. Depending on the nature of the product, these certificates can be obtained at the USDA Food Safety Inspection Service (FSIS), USDA Animal and Plant Health Inspection Service (APHIS), USDA Agricultural Marketing Service (AMS), and the National Oceanic and Atmospheric Administration (NOAA).
Customs Regulations: Chilean customs valuation uses the normal value of merchandise, without special discounts, plus freight and insurance (CIF). Used goods are valued by the customs service per the current new value of similar merchandise, discounting 10% per year of use, up to a 70% discount.
U.S. Export Controls: The U.S. does not maintain an embargo or any country-specific export controls for shipments to Chile. However, U.S. exporters should verify applicable overarching and product-specific export controls by reviewing information from the U.S. Department of Commerce and U.S. Department of State.
Source: The International Trade Administration (ITA), U.S. Department of Commerce www.export.gov
Important Country Government Entities