Hong Kong-Chile free trade deal eliminates tariffs
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Hong Kong-Chile free trade deal eliminates tariffs

The tariff-free exchange of goods and services between Hong Kong and Chile, though not immediate, is a feature of the bilateral free trade agreement (FTA) that came into effect in the two jurisdictions on October 9.

The FTA was signed September 7 2012 and is Hong Kong’s first with a non-Asian or European country.

Hong Kong will not levy tariffs on any incoming Chilean products and Chile has agreed that 88% of its tariff lines will become immediately duty free. An additional 10% will be phased out in the next three years. The remaining 2% of taxed products, including sugar, cereals, and iron and steel products will continue to have tariffs due to ‘market sensitivity’.

Hong Kong companies seeking preferential tax treatment on exports to Chile must complete a Declaration of Origin and comply with preferential rules of origin.

The agreement also covers service sectors. Hong Kong’s traditionally strong financial, telecommunications and professional service sectors will now have access to the Chilean market free of barriers.

The number of service providers or employees will be not be restricted and capital will be permitted to flow freely. The FTA contains additional provisions to encourage competition and cooperation and protect environmental considerations. Both countries will enter negotiations on an additional agreement concerning investments, which will cover non-discrimination, protection from expropriation, and transfer protection.

more across site & bottom lb ros

More from across our site

PwC could elect a woman into the senior leadership position for the first time; in other news, KPMG Australia has extended its CEO’s term
The Senate report into PwC’s scandal is titled ‘The cover up worsens the crime’
Law firms that are conscious of their role in society are more likely to win work, according to a survey of over 23,000 in-house professionals
The firm’s tax business generated a quarter of HLB’s overall revenues in 2023
While successful pillar two implementation will require collaboration across all units, a combination of internal and external tax advice is at the centre of the effort
Binance has also been accused of manipulating foreign exchange rates via currency speculation and rate-fixing
Six individuals should have raised questions over information they received but did not breach professional standards, according to the firm
The partnership of KPMG UK has installed Holt for a second term as CEO and senior partner; in other news, a Baker McKenzie partner has sued the IRS
HSBC has settled a claim originally worth £240m relating to a failed film tax relief scheme without admitting liability or wrongdoing
Their prediction comes after the IRS announced it would send compliance letters to large foreign companies emphasising their US tax obligations
Gift this article