«s

RESTRICTED

GENERAL AGREEMENT O N TjSf^'2

TARIFFS A N D TRADE Limited Distribution

Original: .. Spanish

1975 CONSULTATIONS UNDER ARTICLE XVIII:12(b) WITH CHILE

Additional Information Submitted by Chile Under the Simplified Procedures for Consultations

COMMUNICATION FROM THE CHILEAN DELEGATION

The Chilean Permanent Delegation to the General Agreement on Tariffs and Trade presents its compliments to the GATT secretariat and has the honour to communicate the supplementary information that was requested by the Committee on Balance-of-Payments Restrictions at its meeting on 24 April last.

Specifically, on that occasion a number of additional questions were formulated concerning the import restrictions applied by the Chilean Government for balance-of-payments reasons. The replies to each of these questions are set forth below:

1. More detailed information on the import restrictions system applied by Chile and the way in which it operates (United States).

In Chile there is a regime of unrestricted imports, under which any natural person or corporate body can freely purchase abroad any quantity of goods included in the "List of Permitted Imports". This means that goods not included in that list may not be imported, being deemed to be prohibited for import. Nevertheless, this applies to only a small number of products of a clearly luxury or non-essential character, representing only a very small percentage of imports (Annex' 1).

2. Balance-of-payments figures for the year 1974. (EEC).

The balance of payments for the year 1974- showed a deficit of US$139,700,000. A table is attached which sets forth details of the balance of payments from 1969 to 1974 (Annex 2).

B0P/U7/Add.2_ Pago 2

3. Confirmation that only thirty tariff headings are subject to prior deposit (EEC).

Two-thirds of the tariff headings in the "List of Permitted Imports" were subject to a prior deposit of 10,000 per cent until April 1974- when this requirenont was suspended except in respect of a snail group of non-essential goods, at present comprising fourteen tariff headings (̂ jinex 3).

Lr, A list of products that nay not be imported, indicating whether the;/ are prohibited or subject to quantitative restrictions and, in the latter case, whether for this purpose the system of global quotas or of discretionary or liberal licensing is in effect. Indicate, furthermore, any other provisions applied on imports, other than customs duties, quantitative restrictions and prior deposits (EEC).

The first part of this question is answered in paragraph 1 above. xiS regards the remainder, we wish to state that at the sane tine as it abolished the 10,000 per cent prior deposits, the Chilean Government lifted the following non-tariff restrictions: prior author!zatlons or import licences exchange budgets, quotas by product and importer monopolies for State enterprises, preferential exchange rates, etc.

In addition, the Chilean Government considers that import trade should not be regulated by means of administrative and artificial restrictions, but rather through a rational tariff policy, in combination with a realistic approach concerning international foreign exchange transactions.

5. A question as to whether Chile's customs legislation still comprises the so-called "aforo" (appraisal) charge on invoices, and if so, an explanation thereof (France).

The Chilean "Customs Ordinance", Article 160, stipulates that: "Where the interested party so specifically requests or where the documents of destination presented do not contain all the necessary declarations to allow the customs officer to verify the accuracy of the application a determination shall be made, in accordance with the regulations, through the raforo por examenT (appraisal by examination) procedure in respect of the data, whether lacking or incomplete, also deemed to have been omitted".

This Ordinance provides further that: "Likewise, appraisal of the goods shall be by the Taforo por examen1 procedure in cases where, in accordance with this Ordinance and its regulations, the appraisal is to be made ex officio because the application cannot be required for a particular tariff heading". A subsequent provision states that: "The rates to be charged by the customs authorities for the 'appraisal by examination1 service shall be determined by regulations".

B0P/H7/Add.2 Page 3

6. A question concerning the present situation regarding the abolition of the prior deposit of .10,000 per cent in respect of all but thirty tariff headings, since the Chilean report indicated that this abolition was on a provisional basis (Canada).

As indicated in the reply to question 3> at the present time only fourteen tariff headings are subject to the prior deposit of 10,000 per cent. This is in line with the general policy aimed at gradually eliminating this type of restriction.

Q

The Chilean Permanent. Dele gat ion to the General Agreement on Tariffs and Trade takes this opportunity to present to the GATT secretariat the renewed assurances of its highest consideration.

Geneva, 29 May 1975

B0P/l47/Add.2 Page 4

ANNEX I

List of Goods not Included in the List of Permitted Imports

(Prohibited Items)

Tariff heading No. Product

16.04 Caviar

22.04 Grape must

22. 05 Wine of f r e sh grapes

22.06 Vermouths and o the r wine of f r e sh grapes f lavoured with aromatic e x t r a c t s <** 22.09 S p i r i t s , g in , vodka, whisky, o the r l i q u e u r s Q

24.. 02 C i g a r e t t e s

33.06 Perfumery

43»02 F u r s k i n s , tanned or dressed

43 .03 .Ar t ic les of fu r sk in

58 , CO. Ca rpe t s , c a r p e t i n g and rugs (hand-made)

71 .01 P e a r l s , unworked or worked

71.02 Prec ious s tones

71.Q3 Syn the t i c s tones o the r t han for

i n d u s t r i a l uses

71.QA Dust and powder of p rec ious s tones

71.07 Gold

71.08 Rolled gold

71.09 Pla t inum v l

71.10 Rol led p la t inum

71.U Goldsmiths', silversmiths' and jewellers' sweepings, residues, etc. of precious metal

71.12 Articles of jewellery and parts thereof, of precious metal

B0P/U7/Adâ.2 Page 5

Product

Articles of goldsmiths' or silversmiths' wares

Articles consisting of or incorporating pearls

Passenger cars, station wagons and vans

Watches with cases of precious metal

Worked tortoise shell

Worked mother of pearl

Worked ivory

B0P/U7/Add.2 Page 6

ANNEX. 2

Balance of Payments. 1969-74 (in $ million)

Item

I. CURRENT TRANSACTIONS t

Goods

Exports

Imports

Non-monetary gold

Goods servicing

Transport and communications

Commercial services

Insurance

Capital servicing

Private

Public

Public sector transactions

Diplomatic and consular repre sentation

Official commissions and other costs

Taxes and charges

Miscellaneous

Private transactions

Remittances and transfers

Movement of institutional assets

Tourism and travel costs

Miscellaneous

Total soods and service

1969

-5.6

245.1

1,171.9

926.8

1.4

27.4

33.5

-6.6

0.5

—«c.28.8

-172.1

-56.7

-13.5

-0.8

-19.3

4.6

2.0

-40.8

0.7

5.2

-29.9

-16.8

(-9.2)

1970 ;

-81.1 '

155.7 ;

1,111.7 ;

956.0 |

0.2 !

16.2 i

3i.i : i

-7.3 ;

-7.6

-199.4

-135.7

-63.7

-15.3

-3.1

-19.4

4.3

2.9

-62.1

0.8

6.0

-43.0

-25.6

(-104.7)

1971

-188.8

-18.1

996.8

1,014-9

1.8

11.2

19.0

-3.7

-4.1

-118.5

-55.7

-62.8

-35.0

-7.5

-32.9

3.4

2.0

-50.4

-1.7

5.3

-40.4

-13.6

(-209.0)

1972

-318.3

-186.9

847.4

1,034.3

1.8

2.9

6.5

0.1

-3.7

-59.3

-42.1

-17.2

-26.7

-5.6

-35.4

1.4

12.9

-73.7

-1.3

6.6

-65.2

-13.8

(-341.9)

1973^ J 1974^ !

-379.8

-260.8

1,346.9

1,607.7

2.0

-

-89.0

-

-

(-383.8)

-382.8

-195.5

2,0^3.4

2,238.9

2.0 1

-154.3

-

(-386.8)

B0P/l47/Add.2 Page 7

Balance of Payments. 1969-74 (cont'd) (in $ million)

Item

I. CURRENT TRANSACTIONS (cont'd)

Donations-

Public

Private

SDR allocation

II. CAPITAL MOVEMMTS (Autonomous)

Private

Long term

Medium term

Short term

Public

Long term

Medium term

Short term

III. CAPITAL MOVEMENTS (Compensatory)

Central Bank

Movement of assets

Movement of liabilities

Commercial banks

Movement of assets

Movement of liabilities

Other institutions

1

1969 !

i

(3.6)

0.6

3.0

-

263.1

(-154.6)

-185.3

14.2

16.5

(417.7)

365.8

107.3

-55.4

-215.7

(-169.8)

-138.8

-31.0

(-12.7)

-6.8

-5.7

(-32.8)

1970

(1-.8)

-

1.8

(21.8)

252.5

(-2.6)

9.8

41.7

-54.2

(255.1)

120.3

102.2

32.6

-98.5

(-121.3)

-54.0

-67.3

(-1.9)

-7.3

5.4

(24.7)

1971

(3.5)

0.2

3.3

(16.7)

-49.9

;-117.1

-25.6

-16.8

-74.7

(67.2)

81.0

15.0

-28.8

323.2

(243.7)

181.5

62.2

(65.2)

21.9

43.3

(14.3)

1972

(5.4)

0.3

5.1

(18.2)

228.8

(-5.6)

-2.0

-8.5

4.9

(234.4)

59.3

156.2

18.9

327.6

(198.4)

, 62.1

135.3^

(125.1)

-14.6

' 139.7

(4.D

I973V

(4.0)

(-)

150.5

..

-

248.8

(145.3)

-113.3

256.6

(103.5)

-14.6

118.1

(-)

1974^

(4.0)

(-)

109.4

..

-

139.7

(121.3)

-5.5

126.8

(18.4)

-38.8

57.2

(-)

B0P/l4.7/Add.2 ' Page 8

Balance of Payments. 1969-7£ (cont'd) (in $ million)

•- — I t em ' '~

IV.

V.

VI.

ERRORS AND OMISSIONS

MOVEMENT OF TRADE DEBT

BALANCE, RALANCE OF.PAÏMENTS (Surplus: +; de f i c i t : -)

-1969 - <

-A2.U

-2 .6

217.7

1970 ' * '

-72.9

-

98.5

' —

1971

-84.5

-323.2

i •

1972

-238.1

-

-327.6

1 9 7 3 ^

-19.5

-

-248.8

1974^

133. &

-

-139.7

**Preliminary figures. 2/" ' -/ Not including liabilities under renegotiation with United States banks

(US$152.4 million). 3/ ..' . . M Corresponds to settlements in respect of private persons and D.L. 110.

B0P/H7/Aâd.2 Page 9

•ANNEX 3

List of Goods Subject to 10,000 Per Cent Prior Deposit, with no Automatic Liberalization from this Requirement

18.06.01 Chocolate confectionery

18.06.89 Other (chocolates and other food preparations containing cocoa)

22.09.01 Spirits obtained from sugar cane

24.02.01 Cigars

70.19.89 Other (glass beads and fancy wares of glass)

71.07.01 Gold in powder, leaf and wire for dental and/or industrial use

71.09.01 Platinum and other metals of the platinum group, in powder, leaf and wire for dental and/or industrial use

71.13.01 Of silver (articles)

93.05.01 Air guns

97.03.01 Reproductions of musical instruments

97.04-.02 Casino tables and roulette tables with bearings

97.04.89 Other (games equipment)

97.05.01 Christmas ornaments

97.05.89 Other (entertainment articles)