Doing Business in

Chile

Produced by the UKTI Team in the British Embassy Santiago

Contact: Tom Warwick, Head of Trade & Investment
Email: Tom.Warwick@fco.gov.uk
Last Updated: March 2010

The purpose of the Doing Business guides, prepared by UK Trade & Investment (UKTI) is to provide information to help recipients form their own
judgments about making business decisions as to whether to invest or operate in a particular country. The Report’s contents were believed (at the
time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent
Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the
Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to
purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or
damage (whether consequential or otherwise) which may arise out of or in connection with the Report.
Are you a member of a UK company wishing to export overseas? Interested in entering or
expanding your activity in the Chilean market? Then this guide is for you!

The main objective of this Doing Business Guide is to provide you with basic knowledge about
Chile; an overview of its economy, business culture, potential opportunities and an introduction to
other relevant issues. Novice exporters, in particular will find it a useful starting point.

Further assistance is available from the UKTI team in Chile who would be happy to speak to you
directly. Full contact details are available at the end of this guide.

Important Information - Sanctions and Embargoes

Some countries maybe subject to export restrictions due to sanctions and embargoes placed on
them by the UN or EU. Exporting companies are responsible for checking that their goods can be
exported and that they are using the correct licences.

Further information is available on the Department for Business, Innovation & Skills (BIS) website
Contents 
1.  Introduction ...............................................................................................................................................4 
Strengths of the market.........................................................................................................................................4 
Opportunities in Chile............................................................................................................................................4 
Trade between UK and Chile .................................................................................................................................5 
Economic Overview ...............................................................................................................................................6 
Population..............................................................................................................................................................7 
Political Overview ..................................................................................................................................................7 
Getting here and advice about your stay ..............................................................................................................8 
2.  Preparing to Export to Chile ....................................................................................................................8 
3.  How to do business in Chile ....................................................................................................................9 
What companies should consider when doing business .......................................................................................9 
Market entry and start up Considerations ............................................................................................................9 
Gateways/Locations – Key areas for business .......................................................................................................9 
Customs and Regulations.......................................................................................................................................9 
EU‐Chile Economic Association Agreement...........................................................................................................9 
What the Agreement Means for Goods ................................................................................................................9 
Government Procurement...................................................................................................................................10 
What the Agreement Means for Services............................................................................................................10 
What the Agreement Means for Investment ......................................................................................................10 
Legislation and Local Regulations ........................................................................................................................10 
Recruiting and Retaining Staffing ........................................................................................................................11 
Documentation ....................................................................................................................................................11 
Labelling and Packaging Regulations ...................................................................................................................12 
Standards and Technical Regulation....................................................................................................................12 
Intellectual Property Rights .................................................................................................................................12 
4.  Business Etiquette, Language and Culture..........................................................................................13 
Language..............................................................................................................................................................13 
Meetings and Presentations ................................................................................................................................13 
Negotiations.........................................................................................................................................................13 
5.  What are the challenges?.......................................................................................................................13 
Getting Paid ‐ Terms of Payment.........................................................................................................................13 
6.  How to Invest in Chile ............................................................................................................................14 
Foreign Investment Statute ‐ DL 600 ...................................................................................................................14 
Financial Assistance .............................................................................................................................................14 
7.  Contacts....................................................................................................................................................15 
8.  Resources/Useful Links...........................................................................................................................16 
1. Introduction
Chile is located along the southwest coast of South America, stretching approximately 4,300 km (2,666
miles) from the Atacama Desert in the North to the polar icecaps in the South. Over 6 million of its
population of 16.8 million live in the metropolitan area of the capital Santiago.

Chile is widely recognised as the best managed economy in South America and has enjoyed regular
periods of steady growth. It has long been open to foreign investment, including from the UK which is
the 4th largest investor in Chile (behind the US, Spain and Canada). Chile has an extensive network of
Free Trade Agreements and economic association agreements. It is also an associate member of
Mercosur. This network provides access to almost 1.2 billion consumers world-wide and has made
Chile an attractive export platform.

Chile is amongst the least bureaucratic states in the region and is a good place to do business,
according to a number of rankings (WEF, World Bank, etc), corruption is very low, and tight regulation
has led to market efficiency. Capital markets are deep following the innovative pension reform of the
eighties.

As well as through sound management, Chile’s economic success has been driven by exports,
particularly of copper. Chile is the world’s largest producer of copper, which accounted for 56% of its
exports in 2009.

Strengths of the market 

• Macroeconomic and political stability.

• Open economy.
• A good place to do business – Chile is regularly ranked 1st in the region for competitiveness,
has relatively low levels of bureaucracy and very low levels of corruption.
• A comprehensive network of trade agreements, including an economic association agreement
with the EU – 91% of EU products can be imported tariff free.
• Overhead costs are generally low compared with the UK
• A good stepping stone into the region

Opportunities in Chile 

Chile’s position as the world’s largest producer of copper creates opportunities within the mining
industry, although the tendency is to turn to suppliers from countries that have a similar mining
industry to that in Chile (open-cast and hard rock). This puts the UK at a disadvantage as regards
some of the large scale equipment used in open cast mining operations. However, there is also a
requirement for a whole range of smaller equipment and specialist consulting services.

Chile is moving quickly to diversify its energy supply matrix and increase power generation capacity.
The country now has two liquefied natural gas regasification plants, a number of coal-fired plants in
construction and others in planning, and large, medium and small scale hydro projects under
development. Chile’s geographical diversity gives it access to practically all types of renewable power
sources. The possibility of nuclear power is being increasingly debated and studied. There are
opportunities for British companies that can supply products or operate assets in power generation,
transmission and distribution, particularly for those prepared to adopt a long-term strategy.

The financial services sector is the second-largest in Chile (behind mining) accounting for 16% of GDP
(approximately US$27 billion). Chile's banking sector is one of the most stable in the region. Chilean
individuals and business have relatively good access to credit and the local Stock Market performs
well. Equities in particular are bolstered by the Chilean pension fund industry (Chilean pension fund
administrators manage around US$118.053 billion in assets).

The construction sector employs 500,000 people and represents 8.1% of Chilean GDP. It has been
estimated that the cost of repairing and rebuilding the infrastructure and housing that was damaged
during the 27th February earthquake is around US$1.2 billion. Additionally, prior to the earthquake, the
Ministry of Public Works had major construction plans for Chile: US$5 billion would be spent on 38
mega infrastructure projects throughout Chile to celebrate 200 years of independence in a project
called Chile 2020. These projects would include: enlargement of Santiago’s airport, the creation of
reservoirs and irrigation canals, shipping and coastal infrastructure and a coastal road spanning the
two thirds of the length of Chile. Whether the plan Chile 2020 is modified in light of the recent
earthquake will be announced shortly.

Over the last 5 years, interest in British education has re-emerged, especially with respect to school
management, curricula, and educational technology. Chileans see the British education system as one
of the best in the world – reflected in the fact that 200 of the 770 scholarships offered in 2009 for
postgraduate students chose British universities. A 2008 study conducted by the University of Navarra
found that Chile spends US$500 per capita on ICT, and that there is one computer per four people
(the highest figure in South America). Opportunities for hardware and software suppliers exist through
the Catalogo en Red – a catalogue which advertises educational supplies for public schools, launched
for the first time in 2009. There is also demand for training and niche accreditation in the areas of
insurance, banking, IT, hospitality and catering.

Chile is also keen to expand its services, and there are consultancy opportunities across all sectors.

Trade between UK and Chile  

UK exports to Chile totaled £478 million in 2009 (compared to £272 million in 2008). The main exports
by value in 2009 were petroleum products & related material, power generating machinery and
equipment, as well as industrial machinery and equipment. Significant UK investors include Anglo
American Mining, Balfour Beatty Group, BG Group, HSBC and RSA.

Chilean exports to the UK were £550 million in 2009 (£549 million in 2008). By value beverages
(including wine) were their biggest exports to the UK, followed by fruit and vegetables

Chile has signed Free Trade Agreements with Australia, Canada, China, Central America (Costa Rica, El
Salvador, Guatemala, Honduras, and Nicaragua), EFTA, Japan, Mexico, Panama, South Korea and the
United States. In addition, Chile has entered into economic association agreements with P-4 and the
European Union; partial scope agreement with India; has economic complementary agreements with
Bolivia, Colombia, Cuba, Ecuador, Peru, and Venezuela. It is also an associate member of Mercosur.
This network provides access to almost 1.2 billion consumers world-wide and has made Chile an
attractive export platform.

In part due to this wealth of bilateral agreements, Chile is being increasingly used as a platform to the
region. It is an attractive base for services operations, manufacturing and assembly.
Economic Overview 

Chile’s modern and open economy is stable, well managed, and has enjoyed long periods of growth.
Economic policy in Chile is steps ahead of the region.

Chile as a small open economy is vulnerable to global shocks, particularly those related to commodity
prices (especially copper). The recent economic crisis hit Chile at a time when it had USD 22.7 billion
saved (15% of GDP); the Government tapped some of these funds to stimulate the economy and
came out of 2009 with an estimated contraction of 1.9% (1.6% contraction in the twelve months to
November 2009).

Chile has two sovereign wealth funds: the Fondo de Estabilizacion Economica y Social (the “Economic
and Social Stabilisation Fund” or “FEES”) and the Fondo de Reserva de Pensiones (the “Pension
Reserve Fund” or “FRP”). At the end of 2009, the FEES had a market value of USD12.6 billion and the
FRP had a market value of USD3.5 billion.

In spite of having privatised most public companies during the eighties, Chile still retains public
ownership of Codelco, the world largest copper producer (although part privatisation is a hot topic),
and ENAP, an energy company.

In March 2009 Moody’s Investors Service lifted Chile’s foreign debt rating one level to A1. In
December 2007, Standard and Poor’s raised its long-term foreign currency rating for Chile from A to
A+, putting it on a par with China and ahead of most other emerging economies. Fitch Ratings ranks
Chile at A.

On the 15 December 2009 Chile was formally invited to join the OECD. It went on to sign the
acceptance agreement on 11 January 2010. Chile is the second country in Latin America to join,
Mexico already being a member. Chile had to make a number of changes in order to be able to
accede to the OECD. These, together with the other changes that Chile has committed to, should be
drivers of development. Accession may also encourage more international capital but Chile already
does quite well here and improvement in the quality of Chilean education, in line with OECD
recommendations, should have a bigger impact - if future governments are able to successfully
implement them.

The main economic descriptive statistics follow:

Output

In spite of Chile’s widely praised fiscal and monetary response to the international financial crisis,
which included a US$4 billion (2.8% of GDP) fiscal plan announced in January 2009, Chilean GDP
contracted in 2009 by an estimated 1.9% (1.6% in the twelve months to November 2009). This fell
short of average private forecasts, which predicted a contraction of 1.5% and the Central Bank’s
forecast for 2009.

Average private forecasts for 2010 suggest a growth of 4.3%. This can be viewed against the
promises of President Sebastian Piñera who has pledged an annual growth rate of 6% over the next
four years. The Central Bank estimates that GDP will expand by between 4.5% and 5.5% in 2010.
Interest Rate

The Central Bank's interest rate (in January 2010) is 0.5%. This low rate reflects cuts that took place
throughout 2009 as a result of a decline in economic activity, a drop in the inflation rate, falling
employment figures and tight credit conditions. The Central Bank has also stated that these cuts were
necessary to try and achieve the 3% inflation target.

In its January meeting the Central Bank noted that whilst domestic activity and demand are increasing,
inflation remains low as so an increase in rates is unlikely before the second quarter of 2010.

Exchange rate

The exchange rate was 508.85 pesos /dollar as of 8th March 2010. The average for January to March
2010 has been 516.4 pesos/dollar. Yearlong averages stood at 558 pesos/dollar for 2009 and 522
pesos/dollar in 2008.

However, the exchange rate in Chile varies considerably throughout the year. In December 2009 the
peso was at 506.43 pesos/dollar, much lower than the 636 pesos/dollar rate in January 2009. This
appreciation of the peso was as a result of the repatriation of funds from the FEES (see above), the
weakening of the dollar against other currencies and the increase in the price of copper.

Population 

Chile's population is estimated at around 17 million, the birth rate is actually declining, but this is has
been offset slightly by immigration, resulting in low net population growth. Around 85% of the
population lives in urban areas, and 40% alone live in greater Santiago.

Chile has an ethnic structure of roughly 50% white, 50% mestizo (mixed white and indian blood). The
white segment of Chile’s population is mainly of Spanish descent but there has been immigration from
many other parts of Europe, notably Germany.

Recent years have seen growing immigration from within the region. This includes both legal and
undocumented migrants.

Political Overview 

Sebastian Piñera, took over the Presidency from Michelle Bachelet on March 11th 2010, ending 20
years of centre-left government. President Piñera has pledged to create jobs and to give private
businesses a bigger role in the economy, as well as creating a social development ministry.

President Piñera, however, is unlikely to make radical changes to the management of Chile’s economy,
given the country’s economic success. He has promised a further growth of 6% over the next four
years – it remains to be seen how this will be achieved, especially given the damage to the economy
caused by the major earthquake in February 2010.

President Piñera has spoken of the need to make profound changes to the state-run copper company
Codelco given its lack of efficiency and productivity. For example, the privately-run Escondida mine
produces 145 tonnes of copper/man as compared with the 36 tonnes/man produced by Codelco.
Privatisation of 20% of Codelco has been mooted as a possibility (a 20% float would raise at least
US$20 billion). However, this is not supported by the opposition parties or the unions and would
require a change in the constitution, making it unlikely. President Piñera has recently spoken of
allowing foreign investment into Codelco as a way to improve operations.

As a result of Chile’s entry into the OECD, a number of changes are still required in spheres such as
the environment, education and labour. Some of these changes are at odds with the views of the
parties forming Piñera’s governing alliance.

The National Congress of Chile, the legislative branch has a 38 seat senate and a 120 member
chamber of deputies. Chile’s judiciary is independent and includes a court of appeal, a system of
military courts, a constitutional tribunal and the Supreme Court of Chile.

Getting here and advice about your stay 

FCO Travel Advice

The FCO website has travel advice to help you prepare for your visits overseas and to stay safe and
secure while you are there.

For advice please visit the FCO Travel section

2. Preparing to Export to Chile

Visiting the market is essential if you wish to be seen as keen to compete seriously in Chile. In most
cases doing business in Chile requires local representation in the form of an agent or distributor.

UKTI’s team in Chile can provide a range of services to British-based companies wishing to grow their
business in the Chilean market. Our services include the provision of market information, validated lists
of agents/potential partners, key market players or potential customers; establishing the interest of
such contacts in working with the company; and arranging appointments. In addition, they can also
organise events for you to meet contacts or promote a company and its products/services.

You can commission these services under which are chargeable and operated by UK Trade &
Investment (UKTI) to assist British-based companies wishing to enter or expand their business in
overseas markets. Under this service, the Embassy's Trade & Investment Advisers, who have wide
local experience and knowledge, can identify business partners and provide the support and advice
most relevant to your company's specific needs in the market.

To find out more about commissioning work, please contact your local UKTI office. See
www.ukti.gov.uk

UK companies seeking to establish in Chile can also rely on the support of the British Chilean Chamber
of Commerce (www.britcham.cl). The Chamber can help facilitate networking opportunities, runs
seminars, courses and events and provides exclusive discounts to its members.
3. How to do business in Chile
What companies should consider when doing business  

The Chilean market is very competitive and highly price-sensitive. Therefore, companies must develop
an aggressive marketing campaign and a pricing strategy that is appropriate for the local market.
Additionally, it is important to implement long-term vision and provide strong support to the local
counterpart.
 
Market entry and start up Considerations

The common mode of entry into the Chilean market is through an agent or franchise.
Agent/representative commissions normally range from 5% to 10%, depending on the product.
Chile has low levels of corruption and bureaucracy.

Some sectors have special regulatory frameworks, including telecommunications, energy, and fisheries.
Sector specific information regarding regulation and market entry can be found by contacting the
British Chamber of Commerce (www.britcham.cl).

Gateways/Locations – Key areas for business 

At least a third of Chile's population (population 16.8 million) lives in Gran Santiago (the capital and
suburbs). Nearly all Chilean industrial concerns and commercial houses have their head offices in
Santiago.

Valparaiso (650,000) is the capital of Region V. It is an important port and administrative centre whose
key industries are food processing, mining and fruit production.

The mining industry is mostly clustered in northern Chile, including around the city of Antofagasta
(280,000). Arica (200,000) is the northernmost town, sitting on the border with Peru. Half of all
Bolivia's exports pass through the port of Arica.

Customs and Regulations 
 
EU‐Chile Economic Association Agreement 

Chile has actively pursued a range of both bilateral and multilateral agreements in order to increase its
global engagement. In 2002 the European Union and Chile signed an Economic Association
Agreement. The Agreement’s Free Trade provision makes Chile attractive for trade in goods, services
and investment, both in its own right and as a platform for the wider region.
 
What the Agreement Means for Goods  

The majority of tariffs on UK goods entering Chile were eliminated on 1 February 2003, as too were
most tariffs on Chilean goods entering the UK. Most other tariffs will have a phased reduction, to be
completed in 2010.

Under the agreement, Chile and the EU are also committed to reducing non-tariff barriers with the
Agreement containing a detailed list of trade facilitation measures to improve working methods and
the transparency, simplification and efficiency of customs operations. The Agreement also aims to
facilitate trade by reducing technical barriers to trade.

An associated agreement on Sanitary and Phytosanitary measures aims to facilitate trade in animals
and plants and their products and agreements on wines and spirits gives protection to geographical
indications and traditional expressions.

Government Procurement 

UK operators will have the same treatment and opportunities as Chilean operators for central
government, regional, municipal and certain other public undertakings’ contracts above thresholds as
set out in the Agreement.

What the Agreement Means for Services 

Over the last ten years, Services have consistently represented just over half of Chile’s GDP, while
goods account for around 40%. The Agreement provides for the reciprocal liberalisation of trade in
services with a comprehensive sectoral coverage

What the Agreement Means for Investment  

UK investment in Chile stood at over $2,100 million for the year 2008 with net earnings that year
worth some $142 million; over the period 1974-2008 UK investment totalled US$5.8 billion.
Investment in the Mining sector accounts roughly for 65% of the total billion total followed by the
Industry with 10.5%, Services with 8.5% and Water with 7%. In 2008 authorised investment totalled
US$2.1 million and materialised investment for the same year was US$142 million.

The Agreement provides for liberalisation of investment through the principle of non-discrimination for
establishment. The existing UK bilateral agreement with Chile already guarantees that the treatment
of UK investment will be no less favourable than that given to national investors and guarantees the
free transfer of investment and returns.

Chilean customs valuations use the normal value of merchandise, without special discounts, plus
freight and insurance. Used goods are valued by the customs service according to the current new
value of similar merchandise, discounting 10% per year of use, up to a 70% discount.

Servicio Nacional de Aduanas

(National Customs Service)
Plaza Sotomayor 60
VALPARAISO
Tel: +56 32 200500
Fax: +56 32 212841
Website: www.aduana.cl

Legislation and Local Regulations 

Responding to Tenders   

All government purchases are channeled through an online procurement site, ChileCompra
(www.chilecompra.cl), whether through bids for large contracts or recurring purchases such as
disposable items. Up to December 2008, there were 900 public institutions and 82,000 businesses
trading a total of US$5.04 billion. The government awarded these businesses bids or contracts and
realized over 1.6 million purchase orders with them. Foreign suppliers may register directly by
following instructions on the ChileCompra website, which is also available in English. After registering
on the website, one can access all public sector procurement requirements by industry area and
request to receive an email with a list of current available bids.
 
Recruiting and Retaining Staffing 

Although high-quality administrative staff and unskilled workers are readily available in Chile, it is
rather more difficult to find technicians or specialist workers.

Salaries: These must not be below the monthly minimum wage of CH$165,000 in January 2010,
though there are some exceptions. Payslips must show the deduction of social security contributions,
for which the worker is responsible, but are deducted from salary by the employer. These
subscriptions are as follows (as a percentage of taxable income or declared earnings):

• Not less than 13.3% for pension

• Not less than 7% for health care

The only contributions for which the employer is liable are those for work accident insurance and
occupational illness.

Working week: 45 hours, over five or six days. (Overtime: maximum of two hours per day).
Labour legislation: The age of majority is 18, but 14 to 18 year-olds can work under certain
conditions. The contract of employment must be prepared in two copies and shall contain as a
minimum:

• the place and date of drawing up the contract

• the identity of the employee (nationality, date of birth and date of commencement of employment)
• the nature and location of the work
• the amount, form and period of remuneration
• the length and distribution of the working day
• duration of contract
• any other points which the two parties wish to be specified

Documentation 

Residents of the UK currently do not need a visa to travel to Chile on a tourist basis, and will be
granted 90 days free of charge.

Working visas can also be obtained from Chilean consulates in the UK, or alternatively from the
Chilean Ministry of Foreign Affairs in Chile. The criteria for receiving a working visa can be found in
English on the Chilean Ministry of Foreign Affairs page: (www.minrel.gov.cl)

Obtaining a RUT number (tax identification number) is an essential step for those planning to work in
Chile or planning to establish a business. A RUT is also required in order to opening a local bank
account, which can be a long and bureaucratic process.
Labelling and Packaging Regulations 

Imported consumer goods must display the country of origin before being sold in Chile. Packaged
goods must be marked to show the quality, purity, ingredients or mixtures and the net weight or
measure of the contents.

Canned or packaged foodstuffs imported into Chile must bear labels in Spanish for all ingredients,
including additives, manufacturing and expiration dates of the products, and the name of the producer
or importer. All sizes and weights of the net contents also must be converted to the metric system.
Goods not complying with these measurements may be imported but not sold to consumers until
conversion is made.
 
Getting your Goods to the Market  

The main options for Chile are airfreight, sea freight and express or courier service.

For all methods it is often easier to use a freight forwarder. Forwarders should be approached in the
early stages of market research rather than waiting until the goods are ready to go.

Standards and Technical Regulation 

In 1997 the Consumer’s Law was introduced to establish consumer’s rights and duties and regulate the
relationship between consumer and provider. The Servicio Nacional del Consumidor (SERNAC,
www.sernac.cl) is the public body that establishes product and service standards that must be
complied with, and enforces the law and issues penalties through the courts.

SERNAC regulates purchasing over the internet -making sure customers have not been deceived in the
terms and conditions, and also that advertising by companies on the TV and otherwise represents the
true quality of product/service that is to be delivered. There are also laws for unsolicited advertising,
circumstances in which a contract can be declared void, product/service conformity, refund/warranty,
consumer credit.

Intellectual Property Rights 

Chile is a member of the Paris Convention, the PCT, and the WTO. The Economic Association
Agreement with the European Union includes clauses for the recognition and respect of all kinds of
Intellectual Property.

In 2006 Chile was penalized by the USA for infringing the rights of US patent holders of
pharmaceutical products. There was a failure to adequately enforce key provisions on term
adjustments, data exclusivity and patent linkage. The Instituto Nacional de Propiedad Industrial
(INAPI, www.inapi.cl) was created in April 2008 to strengthen the protection of intellectual property,
and has shifted much domestic manufacturing from copy products to branded products under license
from multinationals. Up to 36% of drugs sold in the Chilean market in 2008 were generic.
4. Business Etiquette, Language and Culture
Language 

The official language of Chile is Spanish. Chilean business is normally conducted in Spanish; however,
most senior managers are proficient in English.

Chilean Spanish has a reputation as being notoriously hard to understand. Many Chileans speak
quickly and drop the final syllables from words. There are also a great number of chilenismos (slang
words) which are unique to Chile.

Meetings and Presentations 

If you decide to do business in Chile, try to meet your trading partners personally. Chile is a face to
face culture and Chileans have a strong preference for doing business with somebody they have
actually met. Written communications sent to a Chilean you know have a much better chance of being
attended to than messages sent to somebody you have not met. Moreover, Chileans will often open
up in personal contacts and give useful information that they are reluctant to commit to paper.
Introductions by a third party, such as a bank or a consulting firm, are often a key prelude to
conducting business in Chile.

Negotiations 

Chileans are typically well informed and know what they are buying, and appreciate the lowest total
cost over the lifetime of the product/service.

5. What are the challenges?

By comparison to other South American markets Chile is a relatively straightforward place to do
business. However, it is not without challenges for UK companies:

- Long distance from the UK means that business is often conducted at arm’s length
- Language barrier
- Importance of a personal introduction and contacts
- Price sensitive market & exchange rate fluctuation

Getting Paid ‐ Terms of Payment 

There is a minimum repayment period for short-term imports of 90 days. Arrangements for remittance
by the intervening commercial bank can proceed within a period of five days prior to the due date.
Imports with a value below US$5,000 will not be subject to the 90 days minimum payment term,
provided the goods are supplied in one shipment and correspond to a single commercial invoice.

Shipments with a FOB value not exceeding US$ 100,000 are possible while the import documentation
formalities are being completed by the local importer.

For short-term payments there is a choice of 'for collection' or Letter of Credit (L/C); the importer is
unable to deposit the equivalent of the value of the goods in local currency until the shipping
documents have been received at the Chilean commercial bank. In such cases exporters are advised
to stipulate at the time of accepting the order that payment should be received by the Chilean
commercial bank by a certain date. If additional assurance of payment is required a Bill of Exchange
may be enclosed with the shipping documents.

Chilean importers usually expect to pay by Letter of Credit (L/C) for initial purchases, however an
alternative method of collection is through a bill of exchange, which reduces the cost to the importer.
The granting of a Letter of Credit (L/C) indicates to the supplier that the importer's bank regards him
as a good risk, thus before going on to use Bills of Exchange, exporters should require the local firm to
present satisfactory commercial and banking references.

6. How to Invest in Chile

Foreign Investment Statute ‐ DL 600 

DL 600 is the main regulatory norm for foreign direct investment in Chile. Investments made under it
are entitled to the rights described below, which are included in an investment agreement entered into
between the investor and the Chilean State (the Foreign Investment Contract, “FIC”).

DL 600 gives foreign investors (non-Chilean legal or natural persons and Chileans residing or domiciled
abroad) the following rights:

• to receive non-discriminatory treatment;

• to participate in any form of investment;
• to hold assets indefinitely;
• to remit or reinvest earnings immediately and to remit capital after one year (or immediately
with authorisation from the FIC);
• to acquire foreign currency at the inter-bank rate of exchange; and
• to opt for either national tax treatment, under which local firms are currently taxed at a rate
of 35% on fully distributed earnings, or, for a period of 10 years, a guaranteed tax rate of
42%.

In order to qualify the investment must be over US$ 5,000,000. Capital investments below this
minimum and can be channeled through Chapter XIV of the Central Bank’s Compendium of Foreign
Exchange Regulations (whose minimum level is US$10,000).

Financial Assistance  

Export credit insurance is available from the private insurance sector (e.g. Atradius, Coface UK) for
which your insurance broker or adviser can help you. The Export Credits Guarantee Department
(ECGD) was launched in 2009 to assist UK exporters by boosting the availability of short-term export
finance (www.ecgd.gov.uk). Further Information on Export Insurance and Finance is available from
the UKTI website under Advice and Support.
7. Contacts
If you have a specific export enquiry about Chile which is not answered by the information on this
report, you may contact:

UK Trade & Investment Enquiry Service

Tel: +44 (0)20 7215 8000
Fax: +44 (0)141 228 3693
Email: enquiries@ukti.gsi.gov.uk

If you prefer to contact the team in Chile direct, contact:

UK Trade and Investment

British Embassy
0125 El Bosque Norte,
Santiago
Chile
(+56 2) 370 4100
commercial.santiago@fco.gov.uk

UK Trade & Investment can help you make the most of these opportunities and help you plan your
approach to the market. You may find out more about the range of services available to UK
companies trading internationally through your local International Trade Team.

We hope that you have found this guide useful. For further information, please contact
your International Trade Adviser or one of the UKTI team in Chile.
8. Resources/Useful Links

Business Link: International Trade

Business Link’s International Trade pages provide an overview of export basics including licensing,
customs procedures, classifying and movement of goods, other regulatory information and export
paperwork issues. It also introduces exporters to the UK Trade Tariff.

Essential reading for exporters!

Find out more at:

http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&r.lc=en&topicId=1079717544

Country Information:

BBC Website:
http://news.bbc.co.uk/1/hi/country_profiles/default.stm

FCO Country Profile:

http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/country-profile/

Culture and communications:

CILT – National Centre for Languages - Regional Language Network in your area:
http://www.cilt.org.uk/workplace/employer_support/in_your_area.aspx

Kwintessential culture guides:

http://www.kwintessential.co.uk/

Customs & Regulations:

HM Revenue & Customs: www.hmrc.gov.uk

Import Controls and documentation (SITPRO): http://www.sitpro.org.uk

Economic Information:

World Bank: www.worldbank.org

OECD: www.oecd.org
Economist: http://www.economist.com/countries/

Export Control

Export Control Organisation:

http://www.businesslink.gov.uk/exportcontrol

Export Finance and Insurance:

ECGD: http://www.ecgd.gov.uk/
Intellectual Property

Intellectual Property Office:

www.ipo.gov.uk

Market Access

Market Access Database for Tariffs (for non-EU markets only):

http://mkaccdb.eu.int/mkaccdb2/indexPubli.htm

SOLVIT – Overcoming Trade Barriers (EU Markets only)

www.bis.gov.uk/EUMarketAccessUnit

Standard and Technical Regulations:

British Standards Institution (BSI):

http://www.bsigroup.com/en/sectorsandservices/Disciplines/ImportExport/

National Physical Laboratory: http://www.npl.co.uk/

Intellectual Property - http://www.ipo.gov.uk/

Trade Statistics:

National Statistics Information: http://www.statistics.gov.uk/hub/index.html

UK Trade Info: www.uktradeinfo.com

Travel Advice:

FCO Travel: http://www.fco.gov.uk/en/travel-and-living-abroad/

NHS: http://www.nhs.uk/nhsengland/Healthcareabroad/
Travel health: http://www.travelhealth.co.uk/