EU-Chile Interim Trade Agreement
As of February 1, 2025, the EU-Chile Interim Trade Agreement (ITA) is now in effect, marking a new beginning for the relationship between these regions. Signed in 2023, this groundbreaking trade deal goes beyond traditional commerce, focusing on sustainability, equal opportunities, and global cooperation. This agreement can reshape industries, empower businesses, and strengthen shared values in both the EU and Chile.
In this blog we will go through the following topics:
EU-Chile ITA: Boosting Growth
The ITA aims to create a fair environment where businesses can thrive. By removing tariffs on 99.9% of EU exports, the agreement opens up new opportunities for European businesses in Chile. This facilitates the movement of goods between the regions and ensures fair competition for companies of all sizes.
Key Industries Benefiting
- Delivery Services: Reduced trade barriers ensure smoother routes for exporting and importing goods.
- Telecommunications: Easier market access fosters innovation and service expansion.
- Maritime Transport: The agreement creates efficient shipping lanes, crucial for global trade.
- Financial Services: EU financial institutions can offer their expertise and services more freely in Chile, enhancing cross-border investments.
Green Economy and Critical Materials
A vital aspect of this agreement is securing critical raw materials. The Energy and Raw Materials chapter ensures a reliable supply of resources like lithium and copper, which are essential for green technologies such as electric vehicles and renewable energy. The inclusion of clean fuels like hydrogen highlights the commitment to a sustainable, low-carbon future.
EU-Chile ITA: New Investment Opportunities
The ITA also promises fair treatment for investors. EU companies looking to expand into Chile will be treated the same as local investors. This simplification benefits small businesses by making it easier to navigate legal and regulatory landscapes and explore new opportunities in a competitive market.
Sustainability & Gender Equality
The agreement emphasizes sustainability and social responsibility. The Trade and Sustainable Development (TSD) chapter commits both the EU and Chile to uphold the standards of the International Labour Organization (ILO) and the Paris Agreement on climate change. These commitments show that trade should go hand-in-hand with environmental responsibility and fair labour practices.
The ITA also includes a Trade and Gender chapter, the first in an EU trade agreement. This chapter aims to eliminate discrimination against women and promote equal opportunities in trade and investment, reflecting shared values of fairness and inclusivity.
EU-Chile ITA: Key Changes Since 1 Feb 2025
- Proof of Origin: EUR.1 movement certificates and invoice declarations are no longer accepted. Claims for preferential origin should be based on a statement on origin or importer’s knowledge.
- Approved Exporter Numbers: Numbers under the old EU-Chile Association Agreement are no longer valid.
- Statement on Origin for EU Products: For consignments over €6,000, a Registered Exporter System (REX) number is required.
- REX Applications: Submitted electronically via the EU Trader Portal. Requirements include a valid Revenue Online Service (ROS) certificate, Customs and Excise registration in ROS, and a valid EORI number.
Tariff Treatment
Preferential tariff treatment can be applied to goods in transit or temporarily stored in bonded warehouses or free zones in the EU or Chile on 1 February 2025. Claims can be made up to two years after this date.
How to Create a Statement on Origin
Exporters should include the following on the invoice, delivery note, or other commercial documents:
- The period for multiple shipments.
- The exporter reference number (REX for EU exporters, RUT for Chilean exporters).
- The origin of the products (EU or Chile).
- Place and date (if not already on the document).
- Name and signature (if required).
Import Declaration Codes for Preferential Origin in the EU:
- Region or Country: ISO country code ‘CL’ for Chile.
- Preference Codes: 300 for standard preference, 320 for preferential quota.
- Supporting Document Types: U123 for a statement on origin, U124 for multiple shipments, and U125 for importer’s knowledge.
These updates should help streamline trade between the EU and Chile under the new agreement.
At Customs Complete, we help businesses stay compliant with changing trade agreements and customs regulations, ensuring you have the right documentation to keep shipments moving efficiently under the EU-Chile agreement.
