ANNOUNCEMENT 29 Apr 2022

In April 2022, the government of Chile increased the applicable reductions on the import tariffs of sugar for the month of May 2022.

 

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Public Finance Ministry. Ministerio de Hacienda. "Decreto Exento 125/2022, Aplica rebajas de derechos de aduana para la importación de azúcar cruda, azúcar refinada grados 1 y 2, y azúcar refinada grados 3 y 4, y subestándares". 29/04/2022. Available at:
https://www.bcn.cl/leychile/navegar?idNorma=1175444

Public Finance Ministry. Ministerio de Hacienda. "Decreto Exento 87/2022, Aplica rebajas de derechos de aduana para la importación de azúcar cruda, azúcar refinada grados 1 y 2, y azúcar refinada grados 3 y 4, y subestándares". 30/03/2022. Available at:
https://www.bcn.cl/leychile/navegar?idNorma=1174191

Inception date: 01 May 2022 | Removal date: 31 May 2022

Import tariff

On 29 April 2022, the Chilean Government adopted Exempt Decree 125/2022 increasing the applicable discount on customs duties of raw sugar, sugar qualified as Grade 1 or 2, as well as Grade 3 and 4, and other substandard. The new discount values are in force for a one-month period, starting on 1 May 2022, and are to be applied to the ad valorem customs duties.

The affected tariff subheadings are 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99. According to the Decree, its objective is to establish a “reasonable margin for internal prices to fluctuate in comparison to the international market” (own translation).

For raw sugar, the discount was increased from USD 161.68 to USD 181.73 per tonne. For sugar qualified as Grade 1 or 2, the discount was increased from 266.25 USD to USD 304.03 per tonne. Additionally, the discount for sugar qualified as Grade 3 or 4 and other substandard was also increased from USD 203.51 to USD 230.65 per tonne. The previous discounts were established via Exempt Decree 87/2022 (see related state act). 

Chile's Price Band System

The system, established in 1986, has the objective of mitigating the impact of fluctuations in international prices of some agricultural products on the domestic market. The Chilean government can apply additional duties or discounts on the import prices, depending on where the international price of the product falls in comparison to a pre-determined margin (minimum and maximum prices). Currently, the system applies to wheat, wheat flour, and sugar. 

AFFECTED SECTORS

 

AFFECTED PRODUCTS