Reaching the consumers

Marketing opportunities

Consumer behavior

According to a study by A.C.Nielsen of changes in the Chilean market in 2006, 42% of Chileans say they orient their purchasing according to the price of the product. 68% of Chileans possess at least one credit card.

Consumer profile and purchasing power

Chileans are not only interested in basic products. More than 50% of them bought electronic goods in 2005 (e.g. DVDs, mobile phones, music equipment, computers). Rising Chilean purchasing power allows them to invest more in health and education, two fundamental elements for the future.

Consumers associations

Asociacion de consumidores y usuarios de Chile

Main advertising agencies

Grupo Color
Canto Nevado
Coloma y asociados

Distributing a product

Market shares

Large-scale distribution, which, until recently, used to address only the upper classes of the population, tends to expand its business in order to reach customers not only in Santiago but in other provinces as well. Big chains such as Carrefour or Wal-mart have been established in Chile for the last few years. However, Carrefour has been obliged to withdraw from the market , as it has not managed to face up to the competition.

Organizations in the retail sector

Asociacion Gremial de Supermercados de Chile

Market access procedures

International Conventions

Member of OECD
Party to the Montreal protocol on Substances that deplete the Ozone Layer

Main International economic cooperation

Chile is a member of several regional and international organizations: it belongs to the UNO and its organizations, to the WTO, to the OAS (Organization of American States), to the ALADI (Latin American Integration Association), to the SELA (Latin American Economic System). On the other hand, it withdrew from the Andean Pact in 1976. With Peru, Chile is the only South American member country of APEC (Forum for Asia-Pacific Economic Cooperation). Since the beginning of the 1990s, Chile has conducted a policy of regional trade agreements. Thus, foreign companies which set up business in Chile to develop industrial production there can benefit from privileged access to the region's markets.

 

"Economic complementarity" agreements have been signed within the framework of the Latin American Integration Association (ALADI), with Bolivia (1993), Peru (1998), Colombia (1993), Ecuador (1994) and Venezuela (1993). Still within the framework of the ALADI, Chile signed with MERCOSUR an association agreement in force since 1 October 1996, aiming to establish gradually a free trade area from 2006. However, because of the economic situation of some neighbors (Argentina), of Chile's desire to maintain the level of its external Customs tariff (quite a lot lower than that of Mercosur) and especially to keep the autonomy of its foreign trade policy, this project has been postponed. In 1999 a free trade agreement was signed with Central America (El Salvador, Honduras, Costa Rica, Guatemala). The free trade treaty between Chile and EFTA (Iceland, Norway, Switzerland and Liechtenstein) came into force on 1 December 2004. Free trade agreements with Canada and Mexico came into force respectively in 1997 and 1998. They were then followed by the one with the United States, which came into force in 2004. This latter agreement has stimulated trade significantly, without having any noteworthy influence on FDI flows. The agreement of association EU/Chile, called "fourth generation" because of its wide field of application (political, economic, commercial and cooperation chapters) is the most ambitious agreement concluded up to now, as it includes commitments to liberalize services especially financial services, and measures concerning investment (pre-establishment).  Since 1 May 2004 the free trade treaty with South Korea has been in force. The free trade treaty between China and Chile came into force on 1 October 2006. In September 2007, a free trade treaty came into force with Japan (Chile's third top trade partner. The last free trade treaty) and another free trade treaty between Chili and Australia came into force in March 2009. 

Non tariff barriers

The Chilean Customs Administration has reserved the right to apply minimum prices to increase the value of imports (that can be the case especially for certain agricultural products such as wheat, edible oils and sugar). However, some products are more watched over than others, especially pharmaceuticals or farm products. Indeed, these products are subject to an authorisation from the Ministry of Agriculture. Some very strict standards totally prevent the import of beef. The import of second-hand vehicles is forbidden (with the exception of ambulances, armoured vehicles, and mobile homes).

Customs duties and taxes on imports

6%

Customs classification

Chile applies the Harmonised Customs System. The customs duties are calculated Ad valorem on the CIF value. Since the 1st January of 2003, the general tariff rate has been 6% on most products, one of the lowest in Latin America. 

Import procedures

Chile is a very open market. All natural persons or legal entities are authorized to carry out import transactions.
In spite of the liberal import regime, licenses are required for goods whose value is over 3 500 USD. In principle, they are granted automatically by the Central Bank of Chile. The importer must present an "Informe de Importacion", a document which must go through the commercial bank. This license is used above all for statistical purposes.

Importing samples

It is possible to export temporarily to Chile according to the procedure in the ATA 12 documentation.  It allows temporary admission: - of commercial samples, - merchandise en route to markets, exhibitions and other commercial displays, - professional materials.  The carnet ATA equally applies to postal and transit traffic.  On the other hand it is not acceptable as regards unaccompanied merchandise.

For further information

Chilean Customs

Organizing goods transport

Main useful means

As there is no reliable rail network, the domestic movement of goods is carried out especially by road. Goods transport by rail is not very developed and neither is goods transport by airplane.

Ports

The harbour office of Chile
Port of San Antonio
Port of Val Paraiso

Airports

Santiago Airport
LAN Cargo
Cargo Chile

Sea transport organizations

The harbour office of Chile

Air transport organizations

Junta aeronautica civil

Road transport organizations

Regulation of roads

Rail transport organizations

Chilean Ministry of Transport

Identifying a supplier

Type of production

The industrial sector contributes about 47% of Chile's GDP and the service industry about 48%.  In the course of the last 150 years, Chile has looked towards exporting its mineral resources, firstly nitrates (used the in the fabrication of fertiliser), then copper, especially since the 1930's.  It has remained the principal exporter of copper in the world, and this metal constitutes without doubt a major pillar of the economy.  In as much as copper still represents by a long way, Chile's principal export, the country has recently succeeded in diversifying its exports, notably in the field of manufactured goods.  From the mining perspective, copper doesn't hold an absolute monopoly since Chile is equally an important producer of iron, zinc, molybdenum, silver and gold as well as manufactured goods( agricultural and food, chemical products , wood and paper.).

Business directories

Yellow Pages
White Pages
Chilnet

Manufacturers associations of the main industries

Association of the electrical and electronic industry
Ores National Association
Federation of Fruits Producers of Chile

Trade Agencies and their representations abroad

Santiago Chamber of Commerce

Enterprises federation

Clima de empredimiento organizado
Servicio de cooperacion tecnica
Industries Trade-Unions federation