Understanding Chile’s import tax and duty system is essential for accurate cost calculation, regulatory compliance, and profitability modeling. This comprehensive guide explains every tax, duty, special charge, and recent regulatory change affecting imports to Chile as of January 2026.
The Chilean Import Tax Framework: An Overview
Chile’s import tax system comprises three primary layers: customs duties (arancel), value-added tax (VAT/IVA), and special product taxes. The system is designed to be transparent and relatively uniform, though with important product-specific exceptions. The weighted average effective tariff rate is just 0.48% on manufactured products due to extensive free trade agreements, but importers face the full 6% baseline tariff without FTA eligibility.
Fundamental Principle: CIF Valuation Base
All Chilean import taxes are calculated on the CIF (Cost, Insurance, Freight) value—the sum of:
- Cost: Product price (FOB value)
- Insurance: Cargo insurance premium (typically 1-2% of product value)
- Freight: Ocean or air transportation cost
This CIF value becomes the basis for calculating both customs duties and VAT. Understanding CIF calculation is critical because many importers mistakenly think duties apply only to the product price, not including freight and insurance costs.
Layer 1: Customs Duties (Arancel Aduanero)
Standard Tariff Rate: 6% (Without FTA)
The baseline customs tariff for imports into Chile from countries without a trade agreement is a flat 6% ad valorem duty. This rate applies to the CIF value.
Example Calculation:
| Component | Amount |
|---|---|
| Product (FOB) | $1,000 USD |
| Insurance (2%) | $20 USD |
| Freight | $100 USD |
| CIF Value | $1,120 USD |
| Customs Duty (6%) | $67.20 USD |
Reduced or Zero Tariffs: Free Trade Agreements
Chile has negotiated free trade agreements (FTAs) with most major trading partners, dramatically reducing or eliminating tariffs. Major agreements include:
| Partner/Agreement | Coverage | Key Benefit |
|---|---|---|
| China | ~98% of products duty-free | Most Chinese imports: 0% tariff with Certificate of Origin |
| United States | 100% of bilateral trade tariff-free as of 2015 | Nearly all US goods: 0% tariff |
| European Union | 99.9% of EU exports duty-free | Most EU goods: 0% tariff (except sugar) |
| CPTPP (Trans-Pacific) | Staged reductions over time | Preferential rates; some goods reach 0% by 2032 |
| MERCOSUR (Peru, Colombia, Argentina, etc.) | Preferential rates | Variable by product; many goods 0% |
Critical Requirement: To claim FTA benefits, you must provide a Certificate of Origin proving the goods were manufactured in the FTA country. Without this certificate, customs applies the standard 6% rate.
Special Tariff Rates for Specific Products
Despite the general 6% rate, some products have product-specific tariff rates that can be dramatically higher or lower:
- Wheat and sugar: Specific tariff rates (not ad valorem)
- Petroleum and derivatives: Specific rates
- Certain agricultural products: Variable rates
Importers must verify the exact HS code for their product to confirm whether the general 6% rate applies or a different rate governs.
Layer 2: Value-Added Tax (IVA) – 19%
Standard Rate and Calculation
Chile’s VAT (Impuesto al Valor Agregado, or IVA) is a 19% tax applied to the CIF value plus the customs duty.
Tax Calculation:
IVA Base = CIF Value + Customs Duty
IVA = IVA Base × 19%
Example:
| Component | Amount |
|---|---|
| CIF Value | $1,120 USD |
| + Customs Duty (6%) | $67.20 USD |
| = IVA Base | $1,187.20 USD |
| IVA (19%) | $225.57 USD |
Total Import Tax Burden
Combining customs duty and VAT:
Total Taxes = Duty + IVA
= ($1,120 × 6%) + ($1,187.20 × 19%)
= $67.20 + $225.57
= $292.77 USD (26.2% of CIF value)
New VAT Rules on Low-Value Imports (October 25, 2025)
Chile implemented sweeping VAT changes effective October 25, 2025, fundamentally altering how low-value goods are taxed:
Previous Rule (Pre-October 25, 2025):
- Imports valued under USD 41 were exempt from VAT and customs duties
- This created tax-free zones for small e-commerce purchases
New Rule (October 25, 2025 Onward):
- The USD 41 exemption is completely eliminated
- All imports are now subject to VAT, regardless of value
- A new USD 500 threshold determines how VAT is collected:
| Value Range | Collection Method | Tariff Treatment |
|---|---|---|
| Under USD 500 | Foreign seller/platform collects VAT at checkout (Simplified Regime) | Duty-free (customs exemption) |
| USD 500 or More | Buyer must declare and pay VAT at Chilean customs | Subject to standard 6% customs duty (or FTA rate) |
Practical Impact:
For importers ordering directly from China (not through e-commerce platforms):
- Orders valued under USD 500: You pay 19% VAT to the seller at checkout, but no 6% customs duty
- Orders valued USD 500 or more: You pay both 19% VAT and 6% customs duty at Chilean port/airport
For consumer e-commerce platforms (Alibaba, AliExpress, Shein, Amazon):
- Platforms must register with Chile’s SII tax authority and collect VAT directly at purchase
- This creates a simplified collection process but increases prices for Chilean consumers
Important Caveat: The customs duty exemption only applies if VAT was actually collected at point of sale. If a foreign seller does not properly register and collect VAT, the goods still face the 6% customs duty plus VAT at import.
Layer 3: Special Taxes on Specific Products
Beyond standard tariffs and VAT, Chile imposes additional “special taxes” (impuestos especiales) on certain products, levied on the same CIF + Duty base as VAT:
Alcoholic Beverages
| Category | Tax Rate | Base |
|---|---|---|
| Beer | 20.5% | Retail or base price |
| Wine, sparkling wine, champagne | 20.5% | Retail or base price |
| Liquors, whiskey, spirits, distillates | 31.5% | Retail or base price |
| Pisco | 31.5% | Base price |
Example: Importing 1,000 bottles of wine with CIF value of $5,000:
- Customs Duty (6%): $300
- IVA (19% × $5,300): $1,007
- Wine Tax (20.5% × $5,300): $1,086.50
- Total Taxes: $2,393.50 (48% tax burden)
Non-Alcoholic Beverages
| Product | Tax Rate | Condition |
|---|---|---|
| Mineral water, syrups, soft drinks | 10% | General rate |
| Sugary drinks (beverages with >15g sugar per 240ml) | 18% | Higher rate for health reasons |
Tobacco Products
| Product | Tax Rate | Application |
|---|---|---|
| Cigarettes | 30% | Plus specific tax per unit (varies by brand/type) |
| Cigars (pure) | 52.6% | As percentage of retail price |
| Processed tobacco | 59.7% | As percentage of retail price |
Note: Tobacco taxes are among the highest globally and consist of both ad valorem and specific unit taxes.
Luxury Goods
Luxury items incur a 15% additional tax on the CIF value plus standard duty:
- Gold, platinum, and ivory articles
- Jewelry and precious stones (natural or synthetic)
- Fine furs
- Mobile home trailers
- Caviar and derivatives
- Fine carpets and similar articles
- Fine art and antiques
Note: The luxury goods tax for personal property owners was recently modified (2% on assets held; import tax remains 15%).
Pyrotechnic Articles (Fireworks)
- 50% tax on CIF + duty for non-industrial pyrotechnic items
- Industrial, mining, and agricultural use: exempt from this tax
Electric Vehicles
- 15% luxury goods tax applies to imported electric vehicles
Complete Tax Calculation Example
To illustrate the full tax burden, here’s a comprehensive example:
Scenario: Importing 500 stainless steel thermoses from China
| Item | Amount |
|---|---|
| PRODUCT COSTS | |
| Unit FOB price | $4.50 USD |
| Total FOB (500 units) | $2,250 USD |
| SHIPPING & INSURANCE | |
| Insurance (2% of FOB) | $45 USD |
| Ocean freight (LCL) | $189 USD |
| CIF VALUE | $2,484 USD |
| CHILEAN IMPORT TAXES | |
| Customs duty (6% × $2,484) | $149 USD |
| IVA base ($2,484 + $149) | $2,633 USD |
| IVA (19% × $2,633) | $500 USD |
| Total Import Taxes | $649 USD |
| TOTAL LANDED COST | $3,133 USD |
| Cost per unit | $6.27 USD |
Converted to Chilean Pesos (at 920 CLP/USD):
- Total landed cost: $2,882,360 CLP
- Cost per unit: $5,765 CLP
- If retail price is $15,990 CLP, profit margin is 177%
Used Goods: Additional Surcharges
Imports of used items face an additional 50% surcharge on top of standard duties and taxes:
Example: Importing a used laptop with CIF value of $500:
- Customs duty (6%): $30
- Standard VAT (19% × $530): $100.70
- Additional Used Goods Surcharge (50% × duties): $15
- Total Taxes: $145.70 (29% burden, vs. 26% for new goods)
This surcharge applies to used vehicles, machinery, equipment, and other secondhand items (when importation is permitted).
Free Trade Zones and Special Tax Regimes
Chile offers special tax incentives in designated free trade zones:
Free Zones (Iquique, Arica, Parinacota, Tocopilla, Palena, Magallanes)
Benefits:
- Exemption from customs duties on imports into the zone
- VAT exemption (19%) on goods remaining in the zone
- No First Category Tax (corporate tax) for companies operating in zones
- Simplified customs procedures
Limitation: These benefits are available only to goods remaining in the zone. Once goods are moved to mainland Chile for sale, duties and VAT become due.
Private Export Warehouses
Companies can import raw materials duty-free for processing and re-export, with customs duties owed only after manufacturing.
Key Documentation and Compliance Requirements
Required Documents for Duty Calculation
To ensure proper duty assessment and avoid delays, provide:
- Commercial Invoice: Item descriptions, quantities, unit prices, total value, FOB/CIF terms, country of origin
- Bill of Lading or Air Waybill: Proof of shipment and value
- Packing List: Item-by-item breakdown with weights and dimensions
- Certificate of Origin: Required to claim FTA benefits (0% or preferential rate)
- HS Code: Verified 8-digit or 10-digit tariff classification
Common Documentation Errors Leading to Overpayment
- Inconsistent values across documents (invoice says $2,500, B/L says $2,490) trigger physical inspections and delays
- Undervaluation to minimize duties is flagged by customs and results in penalties
- Missing HS code or wrong HS code results in reclassification and potential overpayment by 10-32%
- Missing Certificate of Origin costs importers ~6% tariff on FTA-eligible goods
How to Calculate Duties and VAT: Step-by-Step
Use this procedure before every import to budget accurately:
Step 1: Determine CIF Value
CIF = Product FOB + Insurance (usually 2% of FOB) + Freight Cost
Step 2: Look Up HS Code and Applicable Tariff Rate
- Visit www.aduana.cl and use the HS code lookup tool
- Determine if your product qualifies for FTA benefits
- Confirm the applicable rate (0% FTA, 6% MFN, or special rate)
Step 3: Calculate Customs Duty
Customs Duty = CIF × Applicable Tariff Rate
If FTA-eligible with Certificate of Origin: 0%
If from non-FTA country: 6%
Step 4: Calculate VAT Base and VAT
VAT Base = CIF + Customs Duty
IVA = VAT Base × 19%
Step 5: Check for Special Taxes
- Is your product on the special tax list (alcohol, tobacco, luxury goods)?
- If yes, apply the special tax percentage to the VAT base
Step 6: Calculate Total Tax Obligation
Total Taxes = Customs Duty + IVA + Special Taxes (if applicable)
Step 7: Add Local Costs
Total Landed Cost = CIF + Total Taxes + Broker Fees + Port Handling + Transport
Recent Regulatory Changes Impacting Importers (2025-2026)
October 25, 2025: VAT Rules on Low-Value Imports
What Changed:
- Elimination of the USD 41 VAT exemption
- New USD 500 threshold for tax collection mechanism
- Foreign sellers must register with Chile’s tax authority (SII) and collect VAT
Impact on Importers:
- Imports under USD 500 are now subject to 19% VAT (previously exempt below USD 41)
- Customs duty exemption for goods under USD 500 provided VAT is collected at sale
- Larger shipments (USD 500+) face both VAT and standard customs duties as before
Requirement: If you’re importing on behalf of an e-commerce business, ensure your supplier is registered with Chile’s SII to avoid double taxation.
January 1, 2025: Enhanced VAT Compliance on Low-Value Goods
Prior to October’s changes, Chile required collection of VAT from foreign sellers on certain low-value goods beginning January 1, 2025. The October changes expanded and systematized this requirement.
Ongoing: Stricter Tariff Classification Enforcement
Customs authorities have increased scrutiny on HS code misclassification. Misclassified goods are reclassified at customs (causing delays) and importers are liable for tariff differences, plus penalties.
Free Trade Agreement Benefits: The Math
China-Chile FTA Example
China-Chile FTA covers approximately 98% of products and is Chile’s most frequently used FTA for importers in the region.
Scenario: Importing thermoses WITH vs. WITHOUT Certificate of Origin
| Scenario | Without COO | With COO (FTA) |
|---|---|---|
| CIF Value | $2,484 USD | $2,484 USD |
| Customs Duty Rate | 6% (MFN) | 0% (FTA) |
| Customs Duty Amount | $149.04 USD | $0 USD |
| IVA Base | $2,633.04 USD | $2,484 USD |
| IVA (19%) | $500.28 USD | $471.96 USD |
| Total Taxes | $649.32 USD | $471.96 USD |
| Tax Savings | — | $177.36 USD (27% reduction) |
For a 500-unit shipment, this represents a savings of approximately $163,000 CLP (27% tax reduction) simply by providing proper documentation.
US-Chile FTA Example
US goods benefit from 100% tariff elimination under the US-Chile FTA (in effect since 2004):
Scenario: Importing US electronics
| Component | With FTA |
|---|---|
| CIF Value | $5,000 USD |
| Customs Duty | 0% (vs. 6% = $300 savings) |
| IVA (19%) | $950 (calculated on CIF alone, not CIF + duty) |
| Total Taxes | $950 USD (vs. $1,250 without FTA) |
| Savings | $300 USD per shipment |
Cost Optimization Strategies
1. Maximize FTA Benefits
- Always provide Certificates of Origin for eligible goods
- Verify your supplier’s willingness to provide accurate COO documentation
- Confirm your product qualifies under the specific FTA rules of origin
2. Accurate HS Code Classification
- Misclassification can add 10-32% to duty costs
- Consult with customs broker before importing
- Verify HS code independently; you are legally liable for accuracy
3. Strategic Valuation
- Avoid undervaluation; customs will challenge it and assess penalties
- Ensure invoice, B/L, and packing list values are consistent
- Don’t artificially inflate freight to disguise product value (triggers inspection)
4. Product Selection for First Imports
- Avoid heavily taxed categories (alcohol, tobacco, luxury goods) for first imports
- Choose unregulated products to minimize complexity
- These products require additional permits and taxes that complicate cash flow
5. Consider Duty Drawback Programs (for Exporters)
- If you’re importing to manufacture for re-export, you can recover duties
- Requires registration in export warehouse programs
- Complex but valuable if re-exporting is your business model
6. Optimize Shipping Method Timing
- Use maritime for year-round products to minimize duty burden (longer lead times)
- Use air freight for seasonal products to hit market windows (accept higher duty burden)
- Calculate opportunity cost: faster arrival often justifies higher freight + duty combination
Special Situations and Exceptions
Temporary Importation (Customs Bonding)
Products imported for temporary use (exhibitions, repairs, research) can avoid duties through customs bonding. You must post a bond equal to the duty amount and re-export within the specified period.
Damaged Goods in Transit
If goods are damaged during transit, you can file a claim for duty reduction based on the percentage damage. Insurance claims may cover the loss, but duties are generally owed on the full CIF value.
Prohibited and Restricted Items
Some items cannot be imported at all (used vehicles, asbestos) or face special restrictions (agricultural products, pharmaceuticals, electronics). These require pre-approval from regulatory agencies (SAG, ISP, SEC) and cannot be imported through standard duty procedures.
Payment and Timeline
When Are Duties Due?
Duties and VAT are due upon customs clearance, typically within 2-7 business days of cargo arrival. You must pay before goods are released from port or airport.
Payment Methods
- Direct bank transfer to Chilean Treasury (Tesorería General de la República)
- Through your customs broker’s escrow account
- Online via SII portal (for VAT-registered importers)
Late Payment
- Penalties accrue if duties are not paid within specified timeframes
- Storage fees accumulate during any delay ($15,000-40,000 CLP/day)
- Cargo can be seized or auctioned if duties remain unpaid beyond 30 days
Summary Table: Typical Tax Burden by Product Category
| Product | Customs Duty | VAT | Special Tax | Total Burden | Notes |
|---|---|---|---|---|---|
| General goods (FTA-eligible) | 0% | 19% | — | ~19% | With Certificate of Origin |
| General goods (non-FTA) | 6% | 19% | — | ~26% | Default rate |
| Alcoholic beverages | 6% | 19% | 20-31.5% | ~50-60% | Highest tax burden |
| Tobacco/cigarettes | 6% | 19% | 30-60% | ~60-75% | Most heavily taxed |
| Luxury goods | 6% | 19% | 15% | ~43% | Gold, jewelry, furs |
| Electronics | 0-6% | 19% | — | ~19-26% | Depends on FTA/origin |
| Agricultural products | Variable | 19% | 0-10% | ~20-35% | Subject to SAG approval |
| Used goods | 6% | 19% | 50% surcharge | ~35% | Additional penalty for used items |
Chile’s import tax system is complex but transparent. The foundation is straightforward—6% customs duty and 19% VAT on CIF value—but special taxes, FTA benefits, and recent regulatory changes (October 2025) create significant variation by product and origin. Success requires three things:
- Accurate HS code classification and documentation
- Proper use of FTA benefits via Certificate of Origin
- Complete cost modeling including all taxes before committing to orders
By understanding these systems, importers can optimize costs, avoid penalties, and achieve the profitability required for sustainable business operations in Chile.