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Trading restrictions

CHILE

Reported in 2018

Chapter Standards  |  Sub-chapter Product safety certification (EMC/EMI, radio transmission)
Lack of self-certification
Products that utilize radio frequency, cellular, or satellite technology require approval, but they can be homologated with the use of existing test reports.

In general, equipment connecting to the analogue PSTN (Public Switched Telephone Network) and radio equipment is subject to approval by Subtel (Subsecretaría de Telecomunicaciones de Chile). However, network operators are likely to request evidence of compliance with international standards for digital equipment connecting to their networks.

Certificates or tests carried out in the country of origin, although valid in Chile, must be completed with a two-step verification process in Chile which increases the cost for importing goods. This requirement also applies for products certified in their country of origin by internationally recognized laboratories and which are based on international standards. In addition, the foreign certificates also have to be validated by the Chilean consulate in the country of origin.
Coverage Telecom equipment
Restrictions on data

CHILE

Proposed in February 2015
Reported in April 2017

Chapter Data policies  |  Sub-chapter Sanctions for non-compliance
Proposal of Data Protection Law
The proposal of Data Protection Law will impose fines of up to CLP 236,500,000 (approximately USD 370,000).
Coverage Horizontal
Restrictions on data

CHILE

Since August 1999, amended in 2012
Reported in April 2017

Chapter Data policies  |  Sub-chapter Sanctions for non-compliance
Chilean Data Protection Law N° 19,628 (Amendment by Law No. 20,575)

Proposal for Data Protection Law
In Chile, courts are authorized to impose a fine for privacy violations of 2 to 50 UTM (approximately US$150 to $3,400). However, fines have never been imposed until now.

A new proposal for a Data Protection Law will create a Personal Data Protection Agency that will have the ability to monitor and enforce compliance and penalize violations of the law by applying fines of up to CLP 236,500,000 (approximately USD 370,000).
Coverage Horizontal
Restrictions on data

CHILE

Since 1906, amended in 2007

Chapter Data policies  |  Sub-chapter Data retention
Criminal Procedure Code - Art. 222
The Chilean Criminal Procedure Code imposes a mandatory data retention regime that compels Internet service providers (ISPs) and telecommunication companies to collect and store for at least one year records documenting the online activities of users.
Coverage Internet Service Providers and telecommunication companies
Restrictions on data

CHILE

Reported in April 2017

Chapter Data policies  |  Sub-chapter Restrictions on cross-border data flows
Proposal of Data Protection Law
According to a proposed Data Protection Law, data transfer is permitted when (i) the data subject consents to it and in order to fulfill the purposes of the processing; (ii) it is necessary for performing a contract to which the data subject is a party; (iii) there is a legitimate interest by the transferor or transferee; and (iv) the law provides it as such. Additionally, international transfers of data will be considered lawful when the transfer is made to a person subject to the legal system of a country that provides adequate levels of protection, understood as meaning that such protection meets the standards similar or higher than those of the data protection law. The Personal Data Protection Agency will determine the countries that have adequate levels of data protection, considering the elements provided for by the data protection law.
Coverage Horizontal
Establishment restrictions

CHILE

Since 2014

Chapter Business mobility  |  Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Labor Code, Chapter III, article 19
According to the Labor Code, at least 85% of employees in a company must be Chilean, except if the total number of employees is less than 25.
Coverage Horizontal
Establishment restrictions

CHILE

Since 1982

Chapter Competition policy  |  Sub-chapter Competition
Lack of local-loop unbundling
Chile started the liberalization of its telecommunications market in 1982. However, it never implemented the structural separation of its infrastructure and the last mile is still owned by the incumbent.
Coverage Telecommunication sector
Establishment restrictions

CHILE

Since 1970

Chapter Intellectual Property Rights  |  Sub-chapter Copyright
Law No. 17,336, on Intellectual Property
Law No.17,336 on Intellectual Property does not provide for a clear fair use/fair dealing exception, but it lists exceptions where the law authorises certain uses of works protected by intellectual property law.
Coverage Horizontal
Establishment restrictions

CHILE

Reported in 2015

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
Licensing procedure for telecommunication services
While there are no limits on foreign ownership in Chile, there are licensing requirements in place. It is reported that the licensing procedure for telecommunication services can become burdersome for foreign investors as the requirements are unclear.
Coverage Telecommunication sector
Fiscal Restrictions

CHILE

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
WTO Agreement on Government Procurement
Chile is not a party to the WTO Agreement on Government Procurement, it is only an observer to the Committee on Government Procurement.
Coverage All sectors
Sources
  • USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
  • WTO Trade Policy Report by the Secretariat, Chile, Document WT/TPR/S/315, 3 May 2015
Fiscal Restrictions

CHILE

Since 1974

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
Chilean VAT Tax
A VAT of 19% is imposed on the provision of services rendered or utilized in Chile. No VAT registration threshold applies. All business entities must file a business initiation application on commencement of operations and an application for a taxpayer identification number (RUT).
Coverage All services
Fiscal Restrictions

CHILE

Since 2003

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on digital goods and products
Revision of the Withholding Tax Information for Importing Software
In accordance to the US-Chile FTA, "digital goods" were exempt from customs duties. However, instead of applying such an exemption to software programs, Chilean Customs authorities instructed that software products should be characterized as a license and thus remain subject to a 30% withholding tax.
Coverage Foreign Software providers
Fiscal Restrictions

CHILE

ITA signatory? I II

Chapter Tariffs and Trade Defence  |  Sub-chapter Applied tariffs on digital goods
Average MFN rate
5.99%
Weighted average MFN rate
6%
Maximum tariff rate
6%
Coverage rate of zero-tariffs
0.28%

Coverage: Digital goods
Sources

Trading restrictions

CANADA

Reported in 2018

Chapter Online sales and transactions  |  Sub-chapter Online sales
Requirement for online pharmacy
Internet pharmacies are allowed, but a legitimate street address of a physical pharmacy in Canada must be provided. Prescription drugs must come directly from a pharmacy located in Canada.
Coverage Online pharmacies
Trading restrictions

CANADA

Since 2000

Chapter Online sales and transactions  |  Sub-chapter Domain name (DNS) registration requirements
Canadian Presence Requirements for Registrants
To register a .CA domain, individuals or businesses must have a connection to Canada. Either as a Canadian citizen, a permanent resident, a legal representative or a corporation under Canadian laws
Coverage Horizontal