Canada-Chile Free Trade Agreement

Annex I

Schedule of Chile

Sector:

All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation:

National Treatment (Article G-02)

Measures:

Decreto Ley 1.939, Diario Oficial, noviembre 10, 1977,
Normas sobre adquisición, administración y disposición de bienes del Estado

Decreto con Fuerza de Ley 4 del Ministerio de Relaciones Exteriores, Diario Oficial, noviembre 10, 1967

Description:

Investment

Chile when disposing of the ownership or any other right over State land may only do so to Chilean natural or juridical persons. State land for these purposes refers to State land up to a distance of 10 kilometres from the borderfront and up to a distance of 5 kilometres from the oceanfront.

Corporeal immovable property situated in borderland and declared "borderland zone" by virtue of Decreto con Fuerza de Ley 4, 1967, by the Ministerio de Relaciones Exteriores may not be acquired, either as property or in another quality, by natural persons with nationality in a neighbouring country or juridical persons with its principal seat in a neighbouring country or with 40 per cent or more of its capital belonging to such natural persons or its effective control is exercised by such natural persons.

Phase-Out::

None

Sector:

All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation:

National Treatment (Article H-02)

Most-Favoured Nation Treatment (Article H-03)

Local Presence (Article H-05)

Measures:

Additional non-conforming measures

Description:

Cross-Border Services

Additional non-conforming measures with respect to a sector or sub-sector for which a reservation has not been taken pursuant to Article H-06(1) in Chile's Schedule to Annex I. This reservation does not include computer-related services, and technical testing and analysis services.

Phase-out:

None

Sector:

All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation:

National Treatment (Article G-02)

Senior Management and Boards of Directors (Article G-07)

Measures:

As set out in the Description element

Description:

Investment

Chile, when selling or disposing of its equity interests in, or the assets of, an existing state enterprise or an existing governmental entity, may prohibit or impose limitations on the ownership of such interests or assets, and on the ability of owners of such interests or assets to control any resulting enterprise, by investors of Canada or of a non-Party or their investments. With respect to such a sale or other disposition, Chile may adopt or maintain any measure relating to the nationality of senior management or members of the board of directors.

For purposes of this reservation:

• 1. any measure maintained or adopted after the date of entry into force of this Agreement that, at the time of sale or other disposition, prohibits or imposes limitations on the ownership of equity interests or assets or imposes nationality requirements described in this reservation shall be deemed to be an existing measure; and
• 2. "state enterprise" means an enterprise owned or controlled through ownership interests by Chile and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interests in, or the assets of, an existing state enterprise or governmental entity.

Phase-Out:

None

Sector:

All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation:

National Treatment (Article G-02)

Measures:

Decreto con Fuerza de Ley 1 del Ministerio del Trabajo y Prevision Social, Diario Oficial, enero 24, 1994, Código del Trabajo

Description:

Investment

A minimum of 85 per cent of employees who work for the same employer shall be Chilean natural persons. This rule applies to employers with more than 25 employees under a contract of employment (contrato de trabajo). Expert technical personnel, who cannot be replaced by national personnel, shall not be subject to this provision as determined by the Dirección General del Trabajo.

An employee shall be understood to mean any natural person who renders intellectual or material services, under dependence or subordination, pursuant to a contract of employment.

Phase-out:

None

Sector:

Automotive

Sub-Sector:

Industry Classification:

CPC

Type of Reservation:

Performance requirements (Article G-06)

Measures:

Ley 18.483, Diario Oficial, diciembre 28, 1985, Régimen Legal para la Industria Automotriz

Description:

Investment

In order to qualify for the benefits established in Ley 18.483, it is required to be registered in the Registros de la Comisión Automotriz and comply with the minimum national content, as set out in Annex C-03.2

Phase-Out:

As set out in Annex C-03.2.

Sector:

Business Services

Sub-Sector:

Research Services

Industry Classification:

CPC 851 Research and experimental development services on natural sciences and engineering

CPC 853 Interdisciplinary research and experimental development services

CPC 882 Services incidental to fishing

Type of Reservation:

National Treatment (Article H-02)

Measures:

Decreto Supremo 711 del Ministerio de Defensa Nacional, Diario Oficial, octubre 15, 1975

Description:

Cross-Border Services

Foreign juridical persons or natural persons intending to conduct research in the Chilean 200-mile maritime zone, shall be required to submit a request six months in advance and shall comply with the requirements established by the corresponding regulations.

Phase-out:

None

Sector:

Business Services

Sub-Sector:

Research Services

Industry Classification:

CPC 851 Research and experimental development services on natural sciences and engineering

CPC 853 Interdisciplinary research and experimental development services

CPC 8675 Related scientific and technical consulting services

Type of Reservation:

National Treatment (Article H-02)

Measures:

Decreto con Fuerza de Ley 11 del Ministerio de Relaciones Exteriores, Diario Oficial, diciembre 5, 1968

Decreto 559 del Ministerio de Relaciones Exteriores, Diario Oficial, enero 24, 1968

Decreto con Fuerza de Ley 83 del Ministerio de Relaciones Exteriores, Diario Oficial, marzo 27, 1979

Description:

Cross-Border Services

Natural persons representing foreign juridical persons or natural persons residing abroad and intending to perform explorations for work of a scientific or technical nature, or connected to mountain climbing in areas that are adjacent to Chilean borders shall apply for the appropriate authorization through a Chilean Consul in the corresponding country. The Chilean Consul shall then send such request directly to the Dirección de Fronteras y Límites del Estado. The Dirección shall determine whether one or more Chilean natural persons working in the appropriate related activities shall join the expedition in order to become acquainted with the studies to be undertaken.

The Departamento de Operaciones de la Dirección de Fronteras y Límites del Estado shall pronounce itself on whether to authorize or reject geographic or scientific explorations to be carried out by foreign juridical or natural persons in Chile. The Dirección Nacional de Fronteras y Límites del Estado shall authorize and will supervise all explorations involving work of a scientific or technical nature, or related to mountain climbing, that foreign juridical persons or natural persons residing abroad intend to carry out in areas adjacent to Chilean borders.

Phase-out:

None

Sector:

Business Services

Sub-Sector:

Research in Social Sciences

Industry Classification:

CPC 8675 Related scientific and technical consulting services

Type of Reservation:

National Treatment (Article H-02)

Measures:

Ley 17.288, Diario Oficial, febrero 4, 1970

Decreto Supremo 484 del Ministerio de Educación, Diario Oficial, abril 2, 1991

Description:

Cross-Border Services

Foreign juridical persons or foreign natural persons intending to perform excavations, surveys, probings and/or collect anthropological, archaeological and paleontological material must apply for a permit from the Consejo de Monumentos Nacionales. In order to obtain the permit, the person in charge of the research must be engaged by a reliable foreign scientific institution and must be working in collaboration with a Chilean state-owned scientific organization or a Chilean university.

The aforementioned permit can be granted to Chilean researchers having the pertinent scientific background in archaeology, anthropology, paleontology, duly certified as appropriate, and who also have a research project and appropriate institutional sponsorship; and to foreign researchers provided that they are engaged by a reliable scientific institution and that they work in collaboration with a Chilean state-owned scientific organization or a Chilean university. Museum Directors or Curators acknowledged by the Consejo de Monumentos Nacionales, professional archaeologists, anthropologists or paleontologists, as appropriate, and the members of the Sociedad Chilena de Arqueología shall be authorized to perform salvage-related works. Salvage involves the urgent recovery of data or archaeological, anthropological or paleontological artifacts or species threatened by imminent loss.

Phase-out:

None

Sector:

Energy

Sub-Sector:

Industry Classification:

CPC 12 Crude petroleum and natural gas

CPC 13 Uranium and Thorium minerals

CPC 14 Metallic minerals

CPC 16 Other minerals

Type of Reservation:

National Treatment (Article G-02)

Performance Requirements (Article G-06)

Measures:

Constitución Política de la República de Chile

Ley 18.097, Diario Oficial, enero 21, 1982, Ley Orgánica Constitucional sobre concesiones mineras

Ley 18.248, Diario Oficial, octubre 14, 1983, Código de Minería

Ley 16.319, Diario Oficial, octubre 23, 1965, que crea la Comisión Chilena de Energía Nuclear

Description:

Investment

The exploration, exploitation and treatment (beneficio) of liquid or gaseous hydrocarbons, deposits of any kind existing in sea waters subject to national jurisdiction and deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, can be the object of administrative concessions or special operating contracts, subject to the requirements and the conditions to be determined, in each case by a supreme decree of the President of the Republic. For greater certainty, it is understood that the term beneficio shall not include the storage, transportation or refining of the energy material referred to in this paragraph.

The production of nuclear energy for peaceful purposes may only be carried out by the Comisión Chilena de Energía Nuclear or, with its authorization, jointly with third persons. Should the Comisión deem it advisable to authorize, it may determine, in turn, the terms and conditions therein.

Phase-Out:

None

Sector:

Fisheries

Sub-Sector:

Aquaculture

Industry Classification:

CPC 04 Fish and other fishing products

Type of Reservation:

National Treatment (Article G-02)

Measures:

Ley 18.892, Diario Oficial, enero 21 1992, Ley General de Pesca y Acuicultura

Description:

Investment

A concession or permit is required for the use of beaches, land adjacent to beaches (terrenos de playas), water-column (porciones de agua) and sea-bed lots (fondos marinos) to engage in aquaculture activities.

Only Chilean natural or juridical persons constituted in accordance with Chilean law and foreigners with permanent residency may be holders of a permit or concession to carry out aquaculture activities.

Phase-Out:

None

Sector:

Fisheries

Sub-Sector:

Industry Classification:

CPC 04 Fish and other fishing products

Type of Reservation:

National Treatment (Article G-02)

Most-Favoured-Nation Treatment (Article G-03)

Measures:

Ley 18.892, Diario Oficial, enero 21, 1992, Ley General de Pesca y Acuicultura

Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación

Description:

Investment

 In order to harvest and to catch hydrobiological species in interior waters, in the territorial sea and Exclusive Economic Zone of Chile, a permit issued by the Subsecretaría de Pesca is required.

Only Chilean natural persons or juridical persons constituted in accordance with Chilean law and foreigners with permanent residency may be holders of permits to harvest and to catch hydrobiological species.

Only Chilean vessels are permitted to fish in interior waters, in the Territorial sea and Chile's Exclusive Economic Zone. Chilean vessels are those defined in the Ley de Navegación.

Access to extractive industrial fishing activities shall be subject to the previous registration of the vessel in Chile.

Only a Chilean natural or juridical person may register a vessel in Chile. A juridical person must be constituted in Chile with principal domicile and real and effective seat in Chile with its president, manager and majority of the directors or administrators being Chilean natural persons. In addition, more than 50 percent of its equity capital must be held by Chilean natural or juridical persons. For these purposes, a juridical person with ownership participation in another juridical person that owns a vessel has to comply with all the aforementioned requisites.

A joint ownership (comunidad) may register a vessel if the majority of the joint owners are Chilean with domicile and residency in Chile. The administrators must be Chilean natural persons and the majority of the rights of the joint ownership (comunidad) must belong to a Chilean natural or juridical person. For these purposes, a juridical person with ownership participation in a joint ownership (comunidad) that owns a vessel, has to comply with all the aforementioned requisites.

An owner (natural or juridical person) of a fishing vessel registered in Chile prior to June 30, 1991, shall not be subject to the nationality requirement above mentioned.

Fishing vessels specifically authorized by the maritime authorities, pursuant to powers conferred by law in cases ofreciprocity granted to Chilean vessels by other States may be exempted from the above mentioned requisites on equivalent terms provided to Chilean vessels by that State.

Access to small scale fishing activities (pesca artesanal) shall be subject to registration in the Registro de Pesca Artesanal. Registration for small scale fishing (pesca artesanal) is only granted to Chilean natural persons and foreign natural persons with permanent residency, or a Chilean juridical person constituted by the aforementioned persons.

Phase-Out:

None

Sector:

Mining

Subsector:

Industrial

Classification:

CPC 13 Uranium and Thorium minerals

CPC 14 Metallic minerals

CPC 16 Other minerals

Type of Reservation:

National Treatment (Article G-02)

Performance Requirements (Article G-06)

Measures:

Constitución Política de la República de Chile

Ley 18.097, Diario Oficial, enero 21, 1982, Ley Orgánica Constitucionalsobre concesiones mineras

Ley 18.248, Diario Oficial, octubre 14, 1983, Código de Minería

Ley 16.319, Diario Oficial, octubre 23, 1965, que crea la Comisión Chilena de Energía Nuclear

Description:

Investment

The State has the right of first refusal, at the customary market prices and terms, for the purchase of mineral products from mining operations in the country, when thorium or uranium are contained in significant amounts therein.

The State may demand that producers separate from mining products, the portion of substances which cannot be granted in mining concessions which exist, in significant amounts, in said products, and which can be economically and technically separated, for delivery to or for sale on behalf of the State. For these purposes, economically and technically separated requires that the costs incurred to recover the substances concerned through a sound technical procedure, and to commercialize and deliver the same shall be lower than its commercial value.

The exploration, exploitation and treatment ("beneficio") of lithium, deposits of any kind existing in sea waters subject to national jurisdiction and on deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, can be the object of administrative concessions or special operating contracts, subject to the requirements and the conditions to be determined, in each case by a supreme decree of the President of the Republic.

Natural atomic materials and lithium extracted, and concentrates, derivatives and compounds of both of them, cannot be subject to any kind of juridical acts, unless executed or entered into by the Comisión Chilena de Energía Nuclear, with the same or with its prior authorization. Should the Comisión deem it advisable to grant the authorization, it shall determine, in turn, the conditions granted therein.

Phase-out:

None

Sector:

Professional, Technical and Specialized Services

Subsector:

Professional Services

Industry Classification:

CPC 86211 Financial Auditing Services (refers only to financial auditing or financial institutions)

Type of Reservation:

National Treatment (Article H-02)

Local Presence (Article H-05)

Measures:

Ley 18.046, Diario Oficial, octubre 22, 1981, Ley de Sociedades Anónimas

Decreto Supremo 587 del Ministerio de Hacienda, Diario Oficial, noviembre 13, 1982, Reglamento de Sociedades Anónimas

Decreto Ley 1097, Diario Oficial, julio 25, 1975

Decreto Ley 3.538, Diario Oficial, diciembre 23, 1980

Circular 2714, de 1982; Circular 1, octubre 17, 1989, de la Superintendencia de Bancos e Instituciones Financieras; capítulo 19 de la Recopilación de Normas de la Superintendencia de Bancos e Instituciones Financieras, sobre Auditores Externos

Circulares 327, junio 29, 1983 y 350, octubre 21, 1983, de la Superintendencia de Bancos e Instituciones Financieras

Description:

Cross-Border Services

External auditors of financial institutions must be registered in the Registry of External Auditors kept by the Superintendencia de Bancos e Instituciones Financieras and the Superintendencia de Valores y Seguros. Only firms legally incorporated in Chile as partnerships (sociedades de personas) or associations (asociaciones) and whose main line of business is auditing services may be inscribed in the Registry.

Phase out:

None

Sector:

Professional Services

Sub-Sector:

Engineering and Technicians

Industry Classification:

CPC 8672 Engineering Services

CPC 8673 Integrated engineering services

CPC 8675 Related scientific and technical consulting services

Type of Reservation:

National Treatment (Article H-02)

Measures:

Ley 12.851, Diario Oficial, febrero 6, 1958

Description:

Cross-Border Services

Engineers and technicians holding foreign degrees who have been hired to provide services in Chile will require an authorization, entailing registration in a special register, from the corresponding professional association (colegio profesional) and will be subject to the tutelage and the disciplinary authority of such association.

Sector:

Professional Services

Sub-Sector:

Legal Services

Industry Classification:

CPC 861 Legal Services

Type of Reservation:

National Treatment (Article H-02)

Measures:

Código Orgánico de Tribunales

Decreto 110 del Ministerio de Justicia, Diario Oficial, marzo 20, 1979

Ley 18.120, Diario Oficial, mayo 18, 1982

Description:

Cross-Border Services

Only Chileans shall be authorized to practice as lawyers.

Only lawyers shall be authorized to plead a case in Chilean courts and the first legal action or claim filed by each party shall be done so by a lawyer duly qualified to practise law. Among others, the following documents shall be drawn up solely by lawyers: drafting of articles of incorporation and amendments thereto, mutual termination of obligations or liquidation of corporations, liquidation of community property between spouses, distribution of property, articles of incorporation of juridical persons, of associations of irrigation channel members, of cooperative associations, agreements governing financial transactions, the issue of bonds by corporations, and requests asking for the juridical person for corporations and foundations.

Phase-out:

None

Sector:

Professional, Technical and Specialized Services

Sub-Sector:

Justice - Ancillary Services

Industry Classification:

CPC 861 Legal Services

Type of Reservation:

National Treatment (Article H-02)

Local Presence (Article H-05)

Measures:

Código Orgánico de Tribunales

Reglamento del Registro Conservador de Bienes Raíces

Ley 18.118, Diario Oficial, mayo 22, 1982

Decreto 197, del Ministerio de Economía, Diario Oficial, agosto 8, 1985

Ley 18.175, Diario Oficial, octubre 28, 1982

Description:

Cross-Border Services

Justice ancillaries must have their residence in the same city or place where the court house for which they render services is domiciled.

Public defenders ("defensores públicos"), public notaries ("notarios publicos"), and custodians ("conservadores") must be Chilean natural persons and fulfill the same requirements that are needed to become a judge.

Archivists ("archiveros") and arbitrators at law ("árbitros de derecho") must be lawyers, and therefore, need to be Chilean natural persons.

Only Chilean natural persons with the right to vote and foreign natural persons with permanent residence and the right to vote can act as process servers ("receptores judiciales") and superior court attorneys ("procuradores del número").

Only Chilean natural persons, foreign natural persons with permanent residence in Chile or Chilean juridical persons may be public auctioneers ("martilleros públicos").

Receivers in bankruptcy ("síndicos de quiebra") must have a professional or technical degree granted by a university, or a professional or technical institute recognized by the State of Chile. Receivers in bankruptcy must have experience in the commercial, economic or juridical field of no less than three years and they must be duly authorized by the Ministry of Justice and can only work in the place where they reside.

Phase-out:

None

Sector:

Specialized Services

Sub-Sector:

Customs Agents and Brokers

Industry Classification:

CPC 748 Freight transport agency services

CPC 749 Other supporting and auxiliary transport services

Type of Reservation:

National Treatment (Article H-02)

Local Presence (Article H-05)

Measures:

Decreto con Fuerza de Ley 30 del Ministerio de Hacienda, Diario Oficial; abril 13, 1983

Description:

Cross-Border Services

Only Chilean natural persons may act as customs brokers or agents. These duties shall be carried out in person and with due diligence.

Phase-out:

None

Sector:

Specialized Services

Sub-Sector:

Private Armed Guards

Industry Classification:

CPC 873 Investigation and Security

Type of Reservation:

National Treatment (Article H-02)

Measures:

Decreto 1.773 del Ministerio del Interior, Diario Oficial, noviembre 14, 1994

Description:

Cross-Border Services

Only Chilean natural persons shall be able to render services as private armed guards.

Phase-out:

None

Sector:

Sports Services, Industrial Fishing and Hunting

Sub-Sector:

Industry Classification:

CPC 881 Services incidental to agriculture, hunting and forestry

CPC 882 Services incidental to fishing

CPC 96599 Otros servicios de esparcimiento

Type of Reservation:

Local Presence (Article H-05)

Measures:

Ley 17.798,Diario Oficial, diciembre 6, 1977

Decreto Supremo 77 del Ministerio de Defensa Nacional, Diario Oficial, abril 29, 1982

Description:

Cross-Border Services

Any person who own guns, explosives or similar substances must apply for registration to the appropriate authority for the corresponding domicile, for which purpose a request shall be submitted to the Dirección General de Movilización Nacional del Ministerio de DefensaNacional.

Phase-out:

None

Sector:

Transportation

Sub-Sector:

Air transportation

Industry Classification:

CPC 734 Rental services of aircraft with operator

CPC 7469 Other complementary air services

Type of Reservation:

National Treatment (Articles G-02, H-02)

Most-Favoured-Nation Treatment (Article H-03)

Local Presence (Article H-05)

Senior Management and Boards of Directors (Article

G-07)

Measures:

Ley 18.916, Diario Oficial, febrero 8, 1990, Código Aeronáutico

Decreto Ley 2.564, Diario Oficial, junio 22, 1979, Normas sobre Aviación Comercial

Decreto Supremo 624del Ministerio de Defensa Nacional, Diario Oficial, enero 5, 1995

Ley 16.752, Diario Oficial, febrero 17, 1968

Decreto 34 del Ministerio de Defensa, Diario Oficial, febrero 10, 1968

Decreto Supremo 102del Ministerio de Transportes y Telecomunicaciones, Diario Oficial, junio 17, 1981

Decreto Supremo 172del Ministerio de Defensa Nacional, Diario Oficial, marzo 5, 1974

Decreto Supremo 37del Ministerio de Defensa Nacional, Diario Oficial, diciembre 10, 1991

Decreto 234del Ministerio de Defensa Nacional, Diario Oficial, junio 19, 1971

Description:

Cross-Border Services and Investment

Only a Chilean natural or juridical person may register an aircraft in Chile. A juridical person must be constituted in Chile with principal domicile and real effective seat in Chile. In addition, a majority of its ownership must be held by Chilean natural or juridical persons, which in turn must comply with the aforementioned requisites.

The president, manager, majority of directors and/or administrators of the juridical person must be Chilean natural persons.

Foreign registered aircraft engaged in non-commercial activities may not remain in Chile more than 30 days of its date of entry into Chile, unless authorized by the Dirección Generalde Aeronáutica Civil. For greater clarity, this measure shall not apply to specialty air services as defined in Article H-12(2) of this Agreement, except for glider towing and parachute jumping.

In order to work as crew members on aircraft used by a Chilean aviation company, foreign aviation staff shall be required to first obtain a Chilean license with the appropriate permits enabling them to discharge the pertinent duties.

Foreign aviation personnel shall be allowed to work in that capacity in Chile provided that the license or authorization granted by a foreign country is validated by Chilean civil aviation authorities. In the absence of an international agreement regulating such validation, the license or authorization shall be granted under conditions of reciprocity. In that case, proof shall be submitted showing that the licenses or authorizations were issued or validated by the pertinent authorities in the State where the aircraft is registered, that the documents are in force and that the requirements for issuing or validating such licenses and authorizations meet or exceed the standards required in Chile for analogous cases.

Air transportation services may be provided by Chilean or foreign companies subject to the condition that, along the routes in which they operate, foreigners grant similar conditions to Chilean aviation companies when so requested. The Junta Aeronáutica Civil, by means of a substantiated resolution (resolución fundada), may terminate, suspend or limit domestic traffic services (cabotage) or any other class of commercial aviation services carried out solely in Chilean territory by foreign companies or aircraft if in their country of origin the right to equal treatment for Chilean companies and aircraft is denied.

Foreign civil aircraft not engaging in commercial transport activities or non-scheduled commercial air transport intending to enter Chilean territory, including its territorial waters, to fly over Chile and to make stop-overs for non-commercial purposes, shall be required to notify the Dirección General de Aeronáutica Civil at least twenty-four hours in advance. Commercial traffic aircraft not operating on a regular basis shall not be allowed to carry passengers, cargo or mail in Chilean territory without prior authorization by the Junta de Aeronáutica Civil.

Phase-Out:

None

Sector:

Transportation

Sub-Sector:

Land Transportation

Industry Classification:

CPC 712 Other land transport services

Type of Reservation:

National Treatment (Article H-02)

Most-Favoured Nation (Article H-03)

Local Presence (Article H-05)

Measures:

Decreto Supremo 212 del Ministerio de Transportes y Telecomunicaciones, Diario Oficial, noviembre 21, 1992

Decreto 163 del Ministerio de Transportes y Telecomunicaciones, Diario Oficial, enero 4, 1985

Decreto Supremo 257 del Ministerio de Relaciones Exteriores, Diario Oficial, octubre 17, 1991

Description:

Cross-Border Services

Ground transportation service providers must be registered with the Registro Nacional by means of an application submitted to the Secretario Regional Ministerial de Transportes y Telecomunicaciones. In the case of urban services, the request must be submitted to the Secretario Regional of the area where the services are to be rendered and, in the case of rural and inter-city services, in the region where the applicant resides. All information required by law must be included on the registration request and the following documents, among others, must be attached: photocopy of the National Identification card and in the case of juridical persons, public documents verifying incorporation, the name and domicile of the legal representative and a document certifying such status. Foreign natural and juridical persons authorized to provide international transportation in Chilean territory cannot provide local transportation services and/or participate, in any form, in such activities within Chilean territory.

Only companies with real and effective domicile and incorporated under the laws of the following countries can provide international land transportation between Chile, Argentina, Bolivia, Brasil, Peru, Uruguay and Paraguay. Furthermore, in the case of foreign juridical persons more than half of the capital and the effective control of such juridical persons must be in the hands of nationals of Chile, Argentina, Bolivia, Brasil, Peru, Uruguay or Paraguay to obtain a permit to provide international land transportation services.

Phase-out:

None

Sector:

Transportation

Sub-Sector:

Land Transportation

Industry Classification:

CPC 712 Other land transport services

Type of Reservation:

National Treatment (Article H-02)

Most-Favoured-Nation Treatment (Article H-03)

Level of Government:

Measures:

Ley 18.290, Diario Oficial, febrero 7, 1984

Decreto Supremo 485 del Ministerio de Relaciones Exteriores, Diario Oficial, septiembre 7, 1960, Convención de Ginebra.

Description:

Cross-Border Services

Motor vehicles with foreign licence plates entering Chile on a temporary basis under the provisions set forth in the "Convention on Highway Traffic" adopted in Geneva in 1949 shall be authorized to travel freely on Chilean territory for the period established in the above mentioned Convention, provided that they meet the requirements established by Chilean law.

Holders of valid international driving licences or certificates, issued by a foreign country pursuant to the Geneva Convention shall be authorized to travel throughout Chilean territory. Drivers of vehicles with foreign licence plates who hold international driving licences shall present, upon request by the authorities, documents proving that the vehicle is duly authorized for traffic in addition to the documents that authorize the holder to drive.

Phase-out:

None

Sector:

Transportation

Sub-Sector:

Water transportation

Industry Classification:

CPC 721 Transport services by sea-going vessels

CPC 722 Cargo transportation

Type of Reservation:

National Treatment (Articles G-02, H-02)

Most-Favoured-Nation Treatment (Articles G-03, H-03)

Local Presence (Article H-05)

Senior Management and Boards of Directors (Article G-07)

Measures:

Decreto Ley 3.059, Diario Oficial, diciembre 22, 1979, Ley de Fomento a la Marina Mercante

Decreto Supremo 24, Diario Oficial, marzo 10, 1986, Reglamento del Decreto Ley 3.059

Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación

Decreto Supremo 153, Diario Oficial, marzo 11, 1966, Aprueba el Reglamento General de Matrícula del Personal de Gente de Mar, Fluvial y Lacustre

Código de Comercio

Description:

Cross-Border Services

and Investment

Only a Chilean natural or juridical person may register a vessel in Chile. A juridical person must be constituted with principal domicile and real and effective seat in Chile with its president, manager and majority of the directors or administrators being Chilean natural persons. In addition, more than 50 per cent of its equity capital must be held by Chilean natural or juridical persons. For these purposes, a juridical person with ownership participation in another juridical person that owns a vessel has to comply with all the aforementioned requisites.

A joint ownership (comunidad) may register a vessel if the majority of the joint owners are Chileans with domicile and residency in Chile, the administrators must be Chileans and the majority of the rights of the joint ownership must belong to a Chilean natural or juridical person. For these purposes, a juridical person with ownership participation in a joint ownership (comunidad) that owns a vessel has to comply with all the aforementioned requisites.

Special vessels owned by foreign natural or juridical persons domiciled in Chile may under certain conditions be registered in the country. For these purposes a special vessel does not include a fishing vessel. The conditions required are the following: domicile in Chile, principal head office in the country or undertaking a profession or commercial activity in a permanent way in Chile. The maritime authority may, for reasons of national security, impose certain special restrictions on the operation of these vessels.

The maritime authority may concede a better treatment based on the principle of reciprocity.

Cabotage is reserved to Chilean vessels. The maritime authority may concede a better treatment based on the principle of reciprocity with respect to the transportation of passengers and cargo on seas, rivers and lakes between points on the national territory and between such points and naval artifacts installed in territorial waters or in the Exclusive Economic Zone.

Foreign vessels shall be required to use pilotage, anchoring and harbor pilotage services when the maritime authorities so require it. In tugging activities or other maneuvers performed in Chilean ports, only tugboats flying the Chilean flag shall be used.

Captains shall be required to be Chilean nationals and to be acknowledged as such by the pertinent authorities. Officers on Chilean vessels shall be required to be Chilean natural persons registered in the Officers' Registry (Registro de oficiales). To become crew members of a Chilean vessel is required to be Chilean, to have the permit granted by the Maritime Authority and to be registered in the respective Registry. Professional titles and licenses granted by a foreign country shall be considered valid for the discharge of officers' duties on national vessels pursuant to a substantiated resolution (resolución fundada) issued by the Director.

Ship Captains ("patrón de nave") shall be Chilean nationals. The Ship Captains ("patr F3¢n de nave") is the natural person who, pursuant to the corresponding title awarded by the Director, is empowered to exercise command on smaller vessels and on certain special larger vessels.

Only Chilean nationals, or foreigners with domicile in Chile, shall be authorized to act as fishing boat Captains ("patrones de Pesca"), machinists ("mecánicos-motoristas"), machine operators ("motoristas"), sea-faring fishermen ("marineros pescadores"), small-scale fishermen ("pescadores"), industrial or maritime trade technical employees or workers, and as industrial and general ship service crews on fishing factories or fishing boats when so requested by ship operators ("armadores") in order to initiate such work.

In order to fly the national flag, the Captain of the ship, its officers and crew shall be required to be Chilean nationals. Nevertheless, the Dirección Marítima, on the basis of a substantiated resolution (resolucíon fundada), shall authorize the hiring of foreign personnel, on a temporary basis if essential, with the exception of the Captain who, at all times, shall be required to be a Chilean national.

Shipping agents or representatives of ship operators, owners or Captains, whether they are natural or juridical persons, shall be required to be Chilean nationals. Agents responsible for stowing and unstowing, and mooring, i.e., the persons responsible for moving the cargo from ship to port facilities and to overland transport vehicles and vice-versa, whether fully or in part, shall also be required to comply with this provision. Furthermore, the persons responsible for unloading and transferring goods andgenerally using Chilean continental or insular ports, particularly with regard to fishing catches or to fishing catches processed on board shall also be required to be Chilean nationals.

Only a Chilean natural or juridical person shall be authorized to work in Chile as a multimodal operator.

Phase-out:

None