GENERAL AGREEMENT ON TjSf^' 2

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1 RESTRICTED GENERAL AGREEMENT ON TjSf^' 2 TARIFFS AND 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 «s 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 Balanceof 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 balanceofpayments 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 nonessential character, representing only a very small percentage of imports (Annex' 1). 2. Balanceofpayments figures for the year (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).

2 B0P/U7/Add.2_ Pago 2 3. Confirmation that only thirty tariff headings are subject to prior deposit (EEC). Twothirds 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 nonessential 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 nontariff 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 socalled "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 r aforo por examen T (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 T aforo por examen 1 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 examination 1 service shall be determined by regulations".

3 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

4 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 Caviar Grape must Wine of fresh grapes Vermouths and other wine of fresh grapes flavoured with aromatic extracts Spirits, gin, vodka, whisky, other liqueurs <** Q Cigarettes Perfumery 43»02 Furskins, tanned or dressed Articles of furskin 58, CO. Carpets, carpeting and rugs (handmade) Pearls, unworked or worked Precious stones 71.Q3 Synthetic stones other than for 71.QA Gold industrial uses Rolled gold Dust and powder of precious stones Platinum vl Rolled platinum 71.U Goldsmiths', silversmiths' and jewellers' sweepings, residues, etc. of precious metal Articles of jewellery and parts thereof, of precious metal

5 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

6 B0P/U7/Add.2 Page 6 ANNEX. 2 Balance of Payments (in $ million) Item ; ^ J 1974^ I. CURRENT TRANSACTIONS Goods t ' ; ! Exports 1, ,111.7 ; , ,0^3.4 Imports Nonmonetary gold Goods servicing ! 16.2 i 1, , , , Transport and communications Commercial services Insurance i.i : i 7.3 ; Capital servicing «c 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 (9.2) (104.7) (209.0) (341.9) (383.8) (386.8)

7 B0P/l47/Add.2 Page 7 Balance of Payments (cont'd) (in $ million) Item ! I973V 1974^ I. CURRENT TRANSACTIONS (cont'd) i Donations (3.6) (1.8) (3.5) (5.4) (4.0) (4.0) Public Private SDR allocation (21.8) (16.7) (18.2) () () II. CAPITAL MOVEMMTS (Autonomous) Private (154.6) (2.6) ;117.1 (5.6).... Long term Medium term Short term Public (417.7) (255.1) (67.2) (234.4) Long term Medium term Short term III. CAPITAL MOVEMENTS (Compensatory) Central Bank (169.8) (121.3) (243.7) (198.4) (145.3) (121.3) Movement of assets , Movement of liabilities ^ Commercial banks (12.7) (1.9) (65.2) (125.1) (103.5) (18.4) Movement of assets Movement of liabilities Other institutions 5.7 (32.8) 5.4 (24.7) 43.3 (14.3) ' (4.D () 57.2 ()

8 B0P/l4.7/Add.2 ' Page 8 Balance of Payments (cont'd) (in $ million) Item' '~ < 1970 ' * ' 1971 i ^ 1974^ IV. ERRORS AND OMISSIONS A2.U & V. MOVEMENT OF TRADE DEBT 2.6 VI. BALANCE, RALANCE OF.PAÏMENTS (Surplus: +; deficit: ) **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 '

9 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 Chocolate confectionery Other (chocolates and other food preparations containing cocoa) Spirits obtained from sugar cane Cigars Other (glass beads and fancy wares of glass) Gold in powder, leaf and wire for dental and/or industrial use Platinum and other metals of the platinum group, in powder, leaf and wire for dental and/or industrial use Of silver (articles) Air guns Reproductions of musical instruments Casino tables and roulette tables with bearings Other (games equipment) Christmas ornaments Other (entertainment articles)

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