Free Trade Agreements

U.S.-Chile Free Trade Agreement

Also known as: Chile FTA · USCFTA

A bilateral FTA between the U.S. and Chile entered into force January 1, 2004 — duties on virtually all goods now phased out.

The U.S.-Chile Free Trade Agreement is a bilateral free trade agreement implemented by Pub. L. 108-77 and entered into force January 1, 2004. Tariffs on approximately 87% of bilateral trade were eliminated immediately; nearly all categories phased to duty-free by January 1, 2015.

Origin rules. The Chile FTA uses product-specific rules combining tariff shift and regional value content tests where applicable. RVC build-up is 35%; build-down is 45%. A 10% de minimis tolerance applies.

Apparel: yarn-forward. Like most modern U.S. FTAs, Chile uses a yarn-forward rule for apparel. A Tariff Preference Level (TPL) of 1 million SME for cotton and man-made fiber apparel and 2 million SME for wool apparel allows limited non-yarn-forward shipments at preferential rates.

Service and investment provisions. The Chile FTA was a model for later U.S. FTAs, with strong intellectual property, services, investment, and government procurement chapters.

Certification. No prescribed form. Importer's claim is based on a certification containing required data elements (Chile FTA Article 4.13). Records retained for five years.

Claims. Use the "CL" Special Program Indicator on CBP Form 7501. Post-entry claims may be filed within one year under 19 U.S.C. § 1520(d).

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