Chile Forum

Take into account that when you purchase a car in the US you are also paying taxes, this taxes are not charged if the car is brand new for export so, the CIF value is lesser than the value in a concesionary in the states.

If my memory not fails a 15K car is taxed with 11% internacion and 19% VAT, so it may be around 6k taxes (it has not tax for "luxury")

Hey, Chile should have some better trade agreements with other countries. Certainly, being a part of the Pan American or SAFTA or whatever countries agree to, trade should be pretty good with Brazil. They build BMWs and a lot of Ford and other products. Would these be a deal in Chile? There's one vehicle I particularly like, the Obvio. For Obvious reasons.
http://www.obvio.ind.br/obviona/cars.htm Oh, and make mine with a winch!

TomBrad,

I thought that the luxury tax has expired as of the beginning of this year. At least for imports from the US.

While 30% is a lot extra, but what are the prices of a new car in Chile vs. a new Car in the US (same models of course)? But I guess we would have to factor in the tax paid on the car in the US. Unless you could buy a car with the sole purpose of exporting it. How would that work?

Yes, with the original f a certificate of origin you may cut the internacion tax a lot depending on country, may be from Canada, USA and Japan by example wich we have free trade agreements, with Basil and Mexico there are also agreements but assembly is not so reputable from those countries, in the chilean market from bigger countries are prefered because the higher quality control standars

mlightheart, there is not so big difference between brand new cars, you may check prices online in clasified ads from http://www.emol.com, FOB value is the same, the diferences are the freigth/insurance (you have to pay anyway) and the diference on taxes, I understand that taxation is not the same all over the US so is not easy to determine, but I thimk that thhe main difference is freigth and 11% internacion (when apply).

I would be not so optimistic on expiration of luxury tax, the expiration of a tax is in Chile an event so infrequent as a rainy day in Arica (actually It NEVER rains here)

TomBrad2,

What is a certificate of origin and how do you get one?

Certificate of origin must be issued by the manufacturer or exporter in the country of origin (english or spanish) with the specific info required by custom

You may see an example at http://www.pollmann.cl/Resoluciones/Formulario%20Certificado%20de%20Origen%20TLC%20China.pdf

TomBrad2,

I am curious, how does someone go about and buy a new car in the US for export into Chile. You get a Certificate of origin and what other paper work? Since you aren't going to be going to be registering the auto in the US, you are not going to be paying taxes here. And then you have it loaded into a container. I guess it would help to deal with a car dealer that was familiar with doing this sort of thing.

M.

Why would you do that,? You can buy a perfectly good new car in Chile. I suppose maybe because it would be hard to pay for it since you can't get credit and paying cash is tough with ATM withdrawels.

Certificate of origin is to avoid a third country take advantage of free trade agreement. By example> Bolivia has not free trade agreement with the US so they may export to Chile for then export to the US as a chilean product. With a car is the same, certificate of origen is to avoid someone import /lets say/ a frnch made car using the US as a middleman. It is just anoither small bureucreatic nigthmare, one more.

hellibel

¿Qué derechos aduaneros afectan a la importación de vehículos automóviles?

Por regla general; la importación de vehículos automóviles está afecta al pago de dos tributos:

- Derecho ad valorem: 6% del valor CIF del vehículo

- IVA: 19% sobre la base valor CIF+ derecho ad valorem.

Sin embargo, existen otros tributos aduaneros que afectan a la importación de vehículos automóviles:

- Impuesto a los Artículos Suntuarios: Vehículos Casas Rodantes, gravadas con un impuesto adicional de un 15% sobre la misma base del IVA (Valor CIF + derecho ad valorem ).

- Impuesto al Lujo: Vehículos automóviles cuyo valor CIF supere el monto de US $22.788,49, pagan además del derecho ad valorem y el IVA, un impuesto adicional de 42,50% sobre la parte del valor aduanero que exceda el monto en US $ indicado (Impuesto al lujo),durante el presente año 2005.

These are the taxes from the customs website.

19% iva + 6%, plus an additional 45.5% for luxury cars over $22,788 This would explain the lack of sports cars on the road.

Are the documents from the customs web site from 2005? Seem to be.


From a document (that I mentioned in a prior post) from the US Dept of Commerce International Trade Administration (April 2006):

Chile

Tariffs:

· All new imported motor vehicles and automotive parts coming from non-treaty countries are assessed Chile's uniform tariff rate of 6 percent, based on the CIF value (see Various Trade Arrangements).
· Used automotive parts coming from non-treaty countries are assessed an additional tariff surcharge equal to 50 percent of the tariff.

Taxes:

· Value Added Tax (VAT) of 19 percent, charged on the sum of the CIF value and the amount of the duty. This tax is chargeable to the importer, not the foreign supplier. (Imports by Chilean Government offices and Armed forces are not subject to import duties or taxes.)

· Luxury tax: based on CIF value and included in the calculation of VAT, the luxury tax is charged on 21.25 percent of the car's value in excess of an amount which is adjusted annually according to U.S. wholesale price index. (The dollar amount as of January 2006 is $ 27,726.85.) This tax is assessed on all items in excess of this annually determined value. This tax is applied using the following formula: (CIF- 27,726.85) x 0.2125.

· The luxury tax does not apply to buses, trucks, ambulances, off road vehicles, motor homes, or other special vehicles. The luxury tax is applied to those finished and semi- finished vehicles with a useful weight of under 2,000 Kg (a kg being 2.44 lbs).