Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref : EIC 414/2

7 May 2013

Dear Sirs,

Commercial Information Circular No. 350/2013

Chile : Import Taxes Lowered for "Extended Free Zones"

The Chilean government published Exempt Resolution No. 1091/2013 in March 2013 to lower the tax applied to imports of foreign goods into certain areas adjacent to free zones.

2. "Extended free zones" include the free zones of Iquique (normally for use and consumption by residents of Chile's Region I) and Punta Arenas (normally for use and consumption by residents of Chile's Region XV). The "extended free zone" regime for Punta Arenas has subsequently been broadened to cover the Aysén region (Region XI) and the Palena province in Region X.

3. The special fiscal regime in place for these "extended free zones" allows residents to purchase goods free of any duties or taxes (including value-added tax), with the exception of a modest tax assessment that is typically lowered every year. Exempt Resolution No. 1091/2013 has lowered the tax rate to 0.57 percent with effect from 1 April 2013.

4. For details, traders are advised to consult their importers in Chile and/or the abovementioned Chilean Exempt Resolution No. 1091/2013 (in Spanish), which is available at http://www.leychile.cl/Navegar?idNorma=1049168&buscar=resolucion+1091+2013

ENQUIRIES

5.For enquiries about the content of this circular, please contact Miss S Y TANG at telephone number 2398 5405.

Yours faithfully,

(Ms Linda Ng)

for Director-General of Trade and Industry

Note : While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.