Trade between Canada and Chile continue to grow and exceeds $2 billion per year. The Canada-Chile Free Trade agreement / CCFTA has been the cornerstone of Canada’s strong trade and investment relationship with Chile. The relationship will certainly be strengthened by the CPTPP Free Trade agreement, which Canada and Chile are a part of. Businesses now have the choice of whether to use the CCFTA or the CPTPP, depending on whichever applies more favourably to their goods or services.

In addition to shipping from Canada, Jet Worldwide has parcel shipping solutions from high volume parcel flows to Chile from the USA.

In this blog, we review:

  • Chilean customs processes, duty and VAT for shipments from Canada
  • Canadian carrier shipping options to Chile and shipping terms
  • Chilean customs and import duties for shipments from Canada
  • CPTPP - Canada Chile duty free import for Canada Origin Goods
  • Canada - Chile free trade agreement
  • Duty free import for Chile origin goods to Canada

Disclaimer: The information in this blog is for general information only. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.

Jet Worldwide provides shipping to Chile from Canada

Jet Worldwide shares our logistics expertise (as evidenced by our industry leading blog articles) and global parcel shipping solutions: Including shipping to Chile. For professional insights, a comparison quote or "out of the box" solution,Contact Jet's logistics professionals.

Clearance in Chile for Parcels Sent From Canada

Jet Worldwide's service to Chile includes entry preparation. However, it is best to first check with the importer to ensure they have the necessary approvals and valid importer code.

Duty charges in Chile is based on the "CIF value." The CIF value is the total of the value of the item(s) being imported, Insurance and Freight charges. The value is assessed using the Harmonized Code (HS Code). Specific duties can be as high as 30% but the "ad valorem" rate of duty of 6% applies to most goods.

To take advantage of the Chilean - Canadian Free Trade Agreement, goods must be accompanied by a certificate of origin and other supporting documents.

Shipping heavy machinery Chile from Canada

Heavy machinery and parts are big part of the trade between Canada the US and Chile. Whether shipping Canada from Chile - or vice versa- Jet Worldwide provides shipping solutions.

VAT and Import Duties in Chile for shipments sent from Canada

Chile customs follows WTO rules and assesses duty rates on the harmonized code classification and CIF Value (cost of item plus insurance cost plus freight costs). Most shipments valued under $30 USD can be imported free of duty.

Duty Rates to Chile:

As mentioned above, most items imported to Canada are subject to a duty rate that averages between 5% and 10% (6% is a common duty rate for electronics, beauty products, fashion items and pet accessories).

Value added Tax:

In addition to duty, all goods imported to Chile are subject to a Value Added Tax (VAT) of 19%. The VAT rate is applied to the CIF value (outlined above) plus duty.

DUTY FREE ≠ TAX FREE

It is important to understand that CPTPP applies to duty assessments but not taxes. All goods - even those cleared duty free - are subject to Chilean taxes (Value Added Tax 19%)

Shipping Terms to Consider When Shipping to Chile

The default option for shipping internationally from Canada is delivery duty unpaid. Common carriers use the term EXW which essentially assigns all import related costs (duty, taxes, and other fees) to the receiver/ importer. Shippers from Canada can choose to pay the import fees on behalf of the receiver via a Delivery Duty Paid (DDP) options that many carriers offer. See our blog on IncoTerms and shipping terms for packages and online orders.

The disadvantage of paying import fees on behalf of the receiver is that the bulk of the import fees are often from a value added tax (of 19%) that the importing business may otherwise be able to claim back.

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Parcel Shipping Options

Delivery from Canada to Chile from Montreal

Delivery to Chile via Canada Post

Canada Post offers the lowest cost for small packets (under 2kg) to Chile. For Canadians shipping small parcels to Indonesia, Canada Post packet service offers the lowest cost option.

canada-post-box-in-village

Parcels sent via Canada Post are delivered via Correos Chile.

Canada Post Services to Chile include:

  • Canada-Post Small Packet to Chile: Surface and Air for small parcels under 2 kg
  • International Parcel Canada-Post to Chile: For larger parcels
  • Canada-Post Xpresspost to Chile: Fastest postal delivery to Chile (2 weeks)
  • Get a comparison quote for shipping Chile from Canada

Delivery to Chile via FedEx/ UPS Canada

FedEx and UPS Canada are North America's largest parcel carriers and offer - along with DHL -reliable express delivery to Chile. These carriers can be expensive, especially for small companies who are unable to benefit from significant discounts.

FedEx and UPS options for shipping Chile from Canada

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Delivery to Chile from Canada via Jet Worldwide

Jet Worldwide shares our logistics expertise (as evidenced by our industry leading blog articles) and global parcel shipping solutions: Including shipping to and from Chile.

Shipping to Chile via Purolator Canada

Purolator Courier, a leading Canadian Carrier, provides international parcel delivery to Chile via partners (including UPS).

 

 
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Duty free shipping to Chile from Canada:   CPTPP Trade Agreement

SEE OUR BLOG ON CANADA'S MAJOR FREE TRADE AGREEMENTS.

In order to claim the preferential tariff treatment to Chile from Canada under CPTPP,  a set a data elements referred to as a ‘certification origin’ must be provided by the exporter, producer or importer of the goods by adding the information to any document (e.g., Commercial Invoice) accompanying the shipment or if preferred, by providing it on a separate document.

The data elements do not have to follow a prescribed format but must contain the minimum data elements listed below. In addition, the imported goods must originate and be exported from a CPTPP ratified country.

  1. Indicate the Certifier (Importer, Exporter or Producer)
  2. Name, Address and Contact Information of the Certifier
  3. Name, Address and Contact Information of the Exporter (if different from the certifier)
  4. Name, Address and Contact Information of the Producer (if different from the certifier, or exporter)
  5. Name, Address and Contact Information of the Importer
  6. Description and HS Tariff Classification for the Goods
  7. Origin Criterion for the Goods
  8. Blanket Period
  9. Authorized Signature and Date

Note: The certification of origin must be signed and dated by the Certifier and accompanied by the following statement:

“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification”

For full details regarding the minimum data requirements for the certification of origin, please refer to Annex 3-B of the CPTPP agreement.

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Information for Commercial goods sent to Chile seeking CPTPP duty free entry

.Products valued less than US$1000 (equivalent in local currency) that are sent to Chile only requires a signed statement completed by the importer, exporter or producer certifying that the goods originated from Canada.   This can be included as part of - or in addition to - the commercial invoice.    All  other supporting document should also be included.    Higher value shipments require a certification of origin to claim CPTPP preferential tariff treatment. 

Jet Worldwide provides delivery of parcels shipped from Toronto GTA - Ontario, Montreal, Laval - Quebec, Vancouver - British Columbia, Calgary, Edmonton - Alberta and all Canada for parcel delivery in 3-5 days to Santiago, Puente Alto, La Florida, Concepcion and all of Chile.

Canada-Chile Free Trade Agreement CCFTA

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The Canada-Chile Free Trade has been modernized and now co-exists with CPTPP.    Businesses have a choice of whether to use CCFAT or CPTPP and able to apply the one which is more favourable to their goods or services.   

Chile origin orIgIn goods shipped FROM Chile  TO Canada

Canadian companies can more easily take advantage of duty free clearance from Chile a CPTPP  and CCFTA participant.   

Proof of origin requirements under Canada's free trade agreements

The value for duty amount for all of Canada's free trade agreements (including CPTPP and CCFTA) for which the proof of origin / certificate of origin is waived was changed to $3,300 CAD in July 2020.  This change was made to harmonize the regulations with the new NAFTA/  CUSMA.

For imports not exceeding $3,300 to Canada, the  requirement for proof of origin is waived. The requirement on the importer to maintain records (for example, commercial invoice and B3) applies even if the CBSA does not require a certification of origin or if a requirement for a certification of origin has been waived.

 

Disclaimer:   The information in this blog is for general information only.   Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.

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Disclaimer:   The information in this blog is for general information only.   Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.


 

Written by Timothy Byrnes