importing your Auto to Chile

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mlightheart
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importing your Auto to Chile

Post by mlightheart » Mon Apr 16, 2007 10:37 am

I have heard people say that it might be better to buy an automobile after you move to Chile. But for those who have purchased an automobile recently in the US, What are the requirements/problems with importing your automobile into Chile?

Also is there an age limit on the automobile? If your automobile is 10 years old (1997 model), can you import it in? Whether you would want to or not, is another issue, but can you?

Thanks.

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el kayakista
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tax will kill you...

Post by el kayakista » Mon Apr 16, 2007 10:54 am

i did come across legal documentations as to how old a vehicle you can take in. i know in places such as japan, you're not allowed to bring in your own car due to strict regulations. but if you bring in a car, expect to pay A LOT of taxes. so it is better to purchase a vehicle there.

do a google search in importing vehicles into chile. i think you may hit something with the keywords that i've just given you. i've found it, so you should be able too.

actually. here: http://www.ajleon.com/us/faq.htm#Can%20I%20%20bring

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mlightheart
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Post by mlightheart » Mon Apr 16, 2007 2:44 pm

I saw that link before, but it wasn't and still is not clear to me. It says that you can't ,but then you can. Or does this only apply to Chileans? Only Chileans are allowed to import a vehicle into Chile? Also the info is from an Import/Export company, not from a government agency.


As for the situation in Japan goes, I am aware of that fact. If I remember correctly, as a car gets older in Japan, the owner is required to pay more in fees (taxes?) every year. So the lifespan of the car is effectively 5 years or so. The engines in these cars are shipped to other countries, like the US, and jobbers use those engines as replacement engines. I had the engine of my Camry replaced a number years ago with one of these engines.

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just a bit

Post by admin » Tue Apr 17, 2007 1:50 pm

You can not import used vehicles to Chile. The only way you are allowed is for Chileans moving back to Chile, or in the duty free zones such as around Chaiten or Futa.

This is designed to cut down on the junk cars and smog. If you look at Argentina, you will see a lot trashy old fords and such bouncing around. You do not see many beaters in Chile.

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mlightheart
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Post by mlightheart » Tue Apr 17, 2007 3:15 pm

I understand the rationale for not wanting junkers coming in.

But are there any rules on what constitutes a used car? How old the car is, how many miles? I know a car is used once you drive it off the lot.

If someone bought a 2007 model car and wanted to move to Chile and take it with them, could they? Or can only manufactures like GM, Toyota, or Ford import in cars (current models)?

What's the deal with the duty free zones around Chaiten or Futa? I don't follow.

I have read about people driving from the US down the Pan American to Panama and then they had the car ferried to pass the Darien Gap. They drove down to Chile. One heck of a trip.

What's the laws about driving a car into Chile?

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mlightheart
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Post by mlightheart » Wed Apr 18, 2007 12:13 am

I think I found the answers to my questions. I found a pdf document on the ITA website that outlines the import requirements for various countries in SA and it has a section on Chile.

The document is titled "Compilation of Foreign Motor Vehicle Import
Requirements"

By

United States Department of Commerce
International Trade Administration
Office of Aerospace and Automotive Industries

I can provide the link to the pdf, if it is okay with Charles (Admin).

But basically, the part of interest was this:

Import Restrictions:
· In Chile the importation of used vehicles is prohibited. Chile does allow imports of used ambulances, funeral hearse cars, fire- fighting vehicles, street cleaning vehicles, irrigation vehicles, towing vehicles, television projection equipment vehicles, armored commercial vehicles, workshop vehicles, cement making trucks, prison vans, radiological equipment vehicles, motor homes, off-road transportation vehicles, and other similar vehicles for special purposes, different from common transportation vehicles. These used vehicles pay a 9 percent import duty plus VAT. Fire- fighting vehicles are not subject to import duties, and pay the VAT on the CIF value only. A vehicle is considered new if: 1) It is of the current year; or The model is of the last year but the importation occurred before April 30th, and 2) the vehicle has no more mileage than that required to transport the vehicle from the factory to the point of sale and according to customs it corresponds to a first transaction vehicle (i.e., the invoice is from the distributor or the factory).

<Questions>
For off road I wonder if they mean 4X4 vehicles?

For tow vehicles, does having a motorized winch attached qualify? ;)
</Questions>

And here is the part that was mentioned in a post before about the special law for returning Chileans:

Special laws allow tax-exempt new/used car imports by persons returning from exile or returning after living abroad (for one complete year or more) for studies or work after a determined number of years. People domiciled in two domestic free trade zones, Iquique in the north and Punta Arenas in the south may also import used cars. Imports in these areas are exempt from customs duties and VAT. (See Various Trade Arrangements).



From another place on the web, I found that if you drive a car into Chile, you have only 90 days. The temporary import of vehicles into Chile is valid for 90 days only, even if the tourist obtains an extension of his tourist visa. If the vehicle remains in Chile for a longer period, it will be treated as illegal, in accordance with Chilean customs regulations.

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no go ahead

Post by admin » Wed Apr 18, 2007 2:28 am

Sorry, I don't mean to make everyone gun shy about posting links, just as long as they are useful relevant information about Chile or at least the conversation at hand.

It is the spam, or the attempts at hiding spam that I am very nasty with. So far, I think we have gotten the spam problem under fairly good control. Still, I don't want open any invitation to the spammers to come back.

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tax free zones

Post by admin » Wed Apr 18, 2007 2:35 am

That posting above more or less covers all the big points regarding used cars in Chile.

I would just add that if you buy a car in one of the tax free zones ( Futaleufu and Palena are extensions of them ), you are only allowed to drive the car outside of those zones for 90 days a year, and then you must pay the IVA on them. They must be driven by the owner on the registration. You can not give them to a friend to drive. The car basically has a passport, and your licenses plate is red to indicate that it is a tax free zone car. The cops will know if they catch you driving it.

Fines, a beating, and public humiliation for having read this and ignored it will be issued accordingly (well at least a fine). :P :P :P :P :P :P :P :lol: :lol: :lol: :lol: :?: :?:

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Post by mlightheart » Wed Apr 18, 2007 11:00 am

Here is the link to the pdf file:

http://www.ita.doc.gov/td/auto/internat ... BR2006.pdf


What exactly are the boundaries of the tax free zones and extended zones? All I know is that one is located in the North of Chile and one is in the South of Chile.

Is Chile trying to create an incentive for development in these tax free zones?


If you buy a car in one of the tax free zones and later on you move out of the zone, do you pay the IVA and get new tags for the car? Do you pay it once?

The pdf file mentions Taxes and Tariffs: a tariff of 6% on cars from a non-treaty country, a Value Added Tax (VAT) of 19 percent, charged on the sum of the CIF value and the amount of the duty.

Is the VAT and the IVA, the same thing? They are both 19%.

Does CIF stand for Cost, Insurance and Freight? I have seen it in a few other documents.

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cost

Post by admin » Wed Apr 18, 2007 1:23 pm

They are designed to off set the cost of living in those zones. The residents receive all kinds of government subsidies for different things. Everything needs to be shipped in, and Santiago is a long ways a way.

Yes you have to pay your iva and register your car where you move outside the tax zone. I am not sure how they handle used vehicles that where moved in through the tax free zones and then you want move to a tax zone.

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Post by mlightheart » Wed Apr 18, 2007 6:00 pm

The document that I referenced earlier also mentioned a luxury tax on new cars:

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.

From another pdf document that I found:

Under the terms of the FTA (my note: between Chile and the US entered into force on January 1, 2004.), the luxury tax on automobiles is to be phased out over four years by raising the threshold value and lowering the rate each year. The luxury tax is charged on the amount exceeding the threshold value. On January 1, 2007 the luxury tax will be eliminated completely.

document link: http://www.ustr.gov/assets/Document_Lib ... 7_9234.pdf

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exotic cars

Post by admin » Wed Apr 18, 2007 7:51 pm

This is one of the reasons, even among the rich, that you do not see a lot of exotic cars or even true sports cars on the streets of Chile. That has started to change as the Exchange rate to the US dollar has gotten so bad.

Even in Guatemala, the finca owners would buy a new Porsche to beat the hell out of on the dirt roads every year after harvest season.

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