Since 28 February 2014, LDCs are granted Duty-Free, Quota-Free market access by Chile. The QFDF scheme covers all products except for wheat, wheat flour and sugar. All LDCs designated as such by the UN, can receive this beneficial market access. The list of LDCs will be reviewed every three years, by the Ministry of Finance.
Chile has also defined rules of origin. A product is considered to be originated in an LDC when (a) wholly obtained or produced in an LDC, (b) produced entirely in an LDC, using only originating materials or (c) produced in an LDC using non-originating materials that conform to regional value content no less than 50 % or a change in tariff heading. More detailed information about the RoO can be found here.
Utilization by LDCs:
Between 2013 and 2014, Chile’s total imports from LDCs jumped from $139 million to $504 million, $386 million of which entered through the DFQF scheme for LDCs. However, oil imports from Angola accounted for about 77% of total imports from LDCs, and the tariff rates on oil imports are zero in any case. Chile is still not a major importer of LDC goods: the imports from LDCs only accounted for 0.7% of Chile’s total world imports.
Available Smooth Transition Procedures:
No information on smooth transition provisions is available.