U.S. - Chile Free Trade Agreement: Do You Qualify?

The U.S.-Chile Free Trade Agreement (FTA) became effective on Jan. 1, 2004. At that time, more than 85 percent of two-way trade in consumer and industrial goods became duty free. In fact, as of Jan. 1, 2015, all qualifying products are now duty free.

To take advantage of the benefits for U.S. goods under this agreement, exporters will need to understand how to determine that their goods are originating or qualify for preferential duty treatment under the U.S.-Chile FTA Rules of Origin.

Lower duty rates are not the only benefit provided by the U.S.-Chile Free Trade Agreement. The agreement also contains commitments by both countries on many non-tariff issues including intellectual property rights, services, investment, temporary entry of business/technical persons, and telecommunications.

To determine if your product can enter Chile duty-free, it is first necessary to obtain the appropriate HS number for your product. (Download the free white paper, Classifying Your Products for International Trade: The Harmonized System (HS), Harmonized Tariff Schedule (HTS), and Schedule B Codes.)

Armed with the proper HS number, it's possible to check the Chilean tariff schedule, which is found in Annex 3.3 to Chapter Three of the FTA to find out if your products qualify under the terms of the agreement. The U.S. Trade Representative website provides the entire U.S.-Chilean Trade Agreement.

For more information about the FTA Rules of Origin, check out my article, U.S.-Chile Free Trade Agreement Rules of Origin. For answers to common questions about the agreement, read my article, U.S. and Chile Free Trade Agreement: Frequently Asked Questions.

This article was first published in February 2004 and has been updated to include current information, links and formatting.

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