TRADE IN SERVICES AGREEMENT REVISED OFFER BY CHILE APRIL 2014

Transcription

1 TRADE IN SERVICES AGREEMENT REVISED OFFER BY CHILE APRIL 2014 This offer has been drafted based on the November 2013 version of the core text adopted by the TiSA participants. Chile reserves the right to withdraw, modify, or reduce this offer in whole or part, and to correct any errors, omissions or inaccuracies. Chile s offer may change depending on the outcome of the negotiations. This offer is subject to ongoing internal consultation. Chile will table its initial offer with respect to Financial Services following further progress on the development of Financial Services obligations. Chile s offer does not currently include any commitments or exemptions on Most-Favoured-Nation (MFN) treatment, as the related provision in the core text is currently under negotiation. CPC references mean Central Product Classification established by the United Nations Statistics Division (CPC), Series M, Nº77, Provisional Central Product Classification,

2 Modes of supply: (1) Cross border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons Sector o subsector Limitations on national treatment Additional commitments I. HORIZONTAL COMMITMENTS SECTION A RESERVATIONS pursuant to Article II-2:4. Pursuant to Part II, Article II-2:4, Chile reserves the right to adopt or maintain any measure in the specific sectors, sub-sectors or activities listed below: All Sectors Chile reserves the right to adopt or maintain any measure relating to the ownership or control of land within five kilometres of the coastline that is used for agricultural activities. Such measure could include a requirement that the majority of each class of stock of a Chilean juridical person that seeks to own or control such land be held by Chilean persons or by persons residing in Chile for 183 days or more per year. Decree Law 1939, Official Gazette, November 10, 1977, Rules for acquisition, administration and disposal of State owned assets, Title I (Decreto Ley 1939, Diario Oficial, noviembre 10, 1977, Normas sobre adquisición, administración y disposición de bienes del Estado, Título I). All Sectors Communications In the transfer or disposal of any interest in stock or asset held in an existing state enterprise or governmental entity, Chile reserves the right to prohibit or impose limitations on the ownership of said interest or asset and on the right of foreign investors or their investments to control any State company created thereby or investments made by the same. In connection with any such transfer or disposal, Chile may adopt or maintain any measure related to the nationality of senior management and members of the board of directors. A State company shall mean any company owned or controlled by Chile by means of an interest share in the ownership thereof, and it shall include any company created after the entry into force of this Agreement for the sole purpose of selling or disposing of its interest share in the capital or assets of an existing state enterprise or governmental entity. Chile reserves the right to adopt or maintain any measure related to one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services and limited telecommunication services. Law , Official Gazette, October 2, 1982, General Telecommunications Law, Titles I, II, III, V and VI (Ley , Diario 2

3 Oficial, octubre 2, 1982, Ley General de Telecomunicaciones, Títulos I, II, III, V y VI) Issues Involving Minorities Issues Involving Indigenous People Education Government Finances Chile reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities. Chile reserves the right to adopt or maintain any measure according rights or preferences to indigenous people. Chile reserves the right to adopt or maintain any measure relating to education. This non-conforming measure does not apply to the supply of services related to second-language training, corporate, business, and industrial training and skill upgrading, which include consulting services relating to technical support, advice, curriculum, and program development in education Chile reserves the right to adopt or maintain any measure related to the acquisition, sale or disposal by nationals of another Party of bonds, treasury securities or any other type of debt instruments issued by the Central Bank of Chile (Banco Central de Chile) or the Government of Chile. This non-conforming measure is not intended to affect the rights of TiSA members financial institutions (banks) established in Chile to acquire, sell or dispose of such instruments when required for the purposes of regulatory capital. Fisheries Chile reserves the right to control the activities of foreign fishing, including fish landing, first landing of fish processed at sea and access to Chilean ports (port privileges). Chile reserves the right to control the use of beaches, land adjacent to beaches (terrenos de playas), water columns (porciones de agua) and sea-bed lots (fondos marinos) for the issuance of maritime concessions. For greater certainty, maritime concessions do not cover aquaculture. Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I, II, III, IV and V (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación Títulos I, II, III, IV y V) D.F.L. 340, Official Gazette, April 6, 1960, about Maritime Concessions (D.F.L. 340, Diario Oficial, abril 6, 1960, sobre Concesiones Marítimas). Supreme Decree 660, Official Gazette, November 28, 1988, Maritime Concession Act (Decreto Supremo 660, Diario Oficial, noviembre 28, 1988, Reglamento de Concesiones Marítimas). Supreme Decree 123 of the Ministry of Economic Affairs, Development and Reconstruction, Vice- Ministry of Fishing, Official Gazette, August 23, 2004, On Use of Ports (Decreto Supremo 123 del Ministerio de Economía, Fomento y Reconstrucción, Subsecretaría de Pesca, Diario Oficial, agosto 23, 2004, Sobre Uso de Puertos). 3

4 Cultural Industries Social Services Environmental Services Chile reserves the right to adopt or maintain any measure with respect to cultural industries. For greater certainty, for the purposes of this non-conforming measure, government supported subsidy programs for the promotion of cultural activities are not subject to the limitations or obligations of this Agreement. Cultural industries means persons engaged in any of the following activities: (a) publication, distribution, or sale of books, magazines, periodical publications, or printed or electronic newspapers, excluding the printing and typesetting of any of the foregoing; (b) production, distribution, sale, or display of recordings of movies or videos; (c) production, distribution, sale, or display of music recordings in audio or video format; (d) production, distribution, or sale of printed music scores or scores readable by machines; or (e) radiobroadcasts aimed at the public in general, as well as all radio, television and cable television-related activities, satellite programming services and broadcasting networks. Chile reserves the right to adopt or maintain any measure with respect to the supply of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for reasons of public interest: income security or insurance, social security or insurance, social welfare, public education, public training, health care and child care. Chile reserves the right to adopt or maintain any measure imposing the requirement that the production and distribution of drinking water, the collection and disposal of waste water and sanitation services, such as sewage systems, waste disposal and waste water treatment may only be provided by juridical persons incorporated under Chilean law or created in accordance with the requirements established by Chilean law. This non-conforming measure shall not apply to consultancy services retained by the said juridical persons. Construction Services Chile reserves the right to adopt or maintain any measure with respect to the supply of construction services by foreign juridical persons or legal entities. These measures may include requirements such as residency, registration and/or any other form of local presence, or the obligation of giving financial security for work as a condition for the supply of construction services. Transportation Chile reserves the right to adopt or maintain any measure relating to the international land transportation of cargo or passengers in border areas. Additionally, Chile reserves the right to adopt or maintain the following limitations for the supply of international land 4

5 transportation from Chile: (a) the service supplier must be a Chilean natural or juridical person; (b) the service supplier must have a real an effective domicile in Chile; and (c) in the case of juridical persons, the service supplier must be legally constituted in Chile and more than 50 percent of its capital stock must be owned by Chilean nationals and its effective control must be by Chilean nationals. Transportation Chile reserves the right to adopt or maintain any measure relating to land transportation of persons or merchandise within the territory of Chile ( cabotage ). Those activities are reserved to Chilean juridical and natural persons, which shall use vehicles registered in Chile. All Sectors Payments and transfers Chile reserves the right of the Central Bank of Chile to maintain or adopt measures in conformity with its Constitutional Organic Law (Ley Orgánica Constitucional del Banco Central de Chile, Ley ) or other legislation, in order to ensure currency stability and the normal operation of domestic and foreign payments. For this purpose, the Central Bank of Chile is empowered to regulate the supply of money and credit in circulation and international credit and foreign exchange operations. The Central Bank of Chile is empowered as well to issue regulations governing monetary, credit, financial, and foreign exchange matters. Such measures include, inter alia, the establishment of restrictions or limitations on current payments and transfers (capital movements) to or from Chile, as well as transactions related to them, such as requiring that deposits, investments or credits from or to a foreign country, be subject to a reserve requirement (encaje). All Sectors Decree Law 600 (Decreto Ley 600) Decree Law 600 (1974), the Foreign Investment Statute, is a voluntary and special investment regime. As an alternative to the common regime for the entry of capital into Chile, potential investors may apply to the Foreign Investment Committee to be subject to the regime set out in Decree Law 600. The obligations and commitments contained in this Agreement and in this Annex do not apply to Decree Law 600, Foreign Investment Statute, Law Foreign Capital Investment Funds Law, to the continuation or prompt renewal of such laws, to amendments to those laws or to any special and/or voluntary investment regime that may be adopted in the future by Chile. For greater certainty, it is understood that the Foreign Investment Committee of Chile has the right to reject applications to invest through Decree Law 600 and Law Additionally, the Foreign Investment Committee has the right to regulate the terms and conditions of foreign investment under the aforementioned Decree Law 600 and Law

6 All Sectors Movement of Natural Persons Providing Services Chile reserves the right to adopt or maintain any measure with respect to the supply of services through the presence of natural persons (provision of services through mode 4), including immigration measures, except as specifically set out in this Schedule, for the following categories: Intra Corporate Transferees: means natural persons within a foreign enterprise established in Chile, in accordance to commercial presence, of senior and specialized personnel who have been employed by the organization for a period of at least two years immediately preceding the date of their application for admission, performing the same type of duties in the parent company of their country of origin. In any case, foreign natural persons may not represent more than 15 percent (15%) of the total staff employed in Chile, when the employer hires more than 25 persons. Senior personnel are those executives who come under the direct supervision of the board of directors of the enterprise established in Chile and who, inter alia: - conduct the management of the organization or one of its departments or subdivisions; - supervise and control the work of other supervisory, professional or managerial employees; - are personally authorized to hire and fire or recommend hiring or firing or any other measure related to personnel. Specialised personnel are those highly qualified persons who are indispensable to the supply of the service because of their professional knowledge or: - possession of qualifications for a particular type of work or activity requiring specialized technical expertise; - essential knowledge for the supply of the service, research equipment, techniques or management; and - the non-availability of such specialized personnel in Chile. The category of senior and specialized personnel does not include the members of the board of directors of a company established in Chile. For all legal purposes, senior and specialized personnel must establish domicile or residence in Chile. Providers of services are admitted temporarily, for a period of two years, extendable to two more years. Personnel admitted under these conditions will be subject to the provisions of the labour and social security legislation in force. Business Visitors: means a natural person seeking temporary entry, for the purpose of participating in business meetings, performing market or investment studies, generating business contacts or participating in negotiations related to the supply of services in the future, including the setting up of a business or enterprise in the territory of Chile. Temporary entry shall be granted when the business visitor: a) does not perceive remuneration in Chile; b) is not involved in making direct sales to the 6

7 public; c) does not personally supply a service. Persons Responsible for Setting up a Commercial Presence: means persons working in a senior position, as defined above, within a legal person, who are responsible for setting up in Chile a commercial presence of a service provider of another Party when: - the representatives are not engaged in making direct sale or supplying services; and - the service provider has its principal place of business in the territory of another Party and has no other representative, office, branch or subsidiary in any of the Parties. The commitments for Business Visitors and Persons Responsible for Setting up a Commercial Presence do not apply to financial services. 7

8 Sector o subsector Limitations on Market access Limitations on national treatment Additional commitments I. HORIZONTAL COMMITMENTS SECTION B All Sectors Limitations on Market Access pursuant to Article II-1 Pursuant to Part II, Article II-1, Chile maintains the following terms, limitations and conditions on market access in all sectors included in Part II of this Schedule: (4) Unbound, except as indicated in Part I, Section A. Reservations pursuant to Articles II-2:2 and II-2:3 Pursuant to Part II, Articles II-2:2 and II-2:3, Chile maintains the following conditions and qualifications on national treatment in all sectors. Movement of Natural Persons Providing Services All Sectors Chile may only dispose of the ownership or other rights over State land to Chilean natural or juridical persons, unless the applicable legal exceptions, such as in Decree Law 1939 (Decreto Ley 1939), apply. State land for these purposes refers to State owned land up to a distance of ten kilometres from the border and up to a distance of five kilometres from the coastline. Chile may only dispose of the ownership or other rights over State land to Chilean natural or juridical persons, unless the applicable legal exceptions, such as in Decree Law 1939 (Decreto Ley 1939), apply. State land for these purposes refers to State owned land up to a distance of ten kilometres from the border and up to a distance of five kilometres from the coastline. 8

9 Corporeal immovable property situated in areas declared the borderland zone by virtue of D.F.L 4 of the Ministry of Foreign Affairs, 1967 (D.F.L. 4 del Ministerio de Relaciones Exteriores, 1967) may not be acquired, either as property or in any other title, by (a) natural persons with nationality of a neighbouring country; (b) juridical persons with their principal seat in a neighbouring country; (c) juridical persons with 40 per cent or more of capital owned by natural persons with nationality of a neighbouring country; or (d) juridical persons effectively controlled by such natural persons. Notwithstanding the foregoing, this limitation may not apply if an exemption is granted by a Supreme Decree (Decreto Supremo) of the President of the Republic based on considerations of national interest. Corporeal immovable property situated in areas declared the borderland zone by virtue of D.F.L 4 of the Ministry of Foreign Affairs, 1967 (D.F.L. 4 del Ministerio de Relaciones Exteriores, 1967) may not be acquired, either as property or in any other title, by (a) natural persons with nationality of a neighbouring country; (b) juridical persons with their principal seat in a neighbouring country; (c) juridical persons with 40 per cent or more of capital owned by natural persons with nationality of a neighbouring country; or (d) juridical persons effectively controlled by such natural persons. Notwithstanding the foregoing, this limitation may not apply if an exemption is granted by a Supreme Decree (Decreto Supremo) of the President of the Republic based on considerations of national interest. Decree Law 1939, Official Gazette, November 10, 1977, Rules for acquisition, administration and disposal of State owned assets, Title I (Decreto Ley 1939, Diario Oficial, noviembre 10, 1977, Normas sobre adquisición, administración y disposición de bienes del Estado, Título I). Decree with Force of Law (D.F.L.) 4 of the Ministry of Foreign Affairs, Official Gazette, November 10, 1967 (Decreto con Fuerza de Ley (D.F.L.) 4 del Ministerio de Relaciones Exteriores, Diario Oficial, noviembre 10, 1967). 9

10 All sectors A minimum of 85 per cent of employees who work for the same employer shall be Chilean natural persons. This rule applies to employers with more than 25 employees under a contract of employment (contrato de trabajo). Expert technical personnel shall not be subject to this provision, as determined by the Directorate of Labour (Dirección del Trabajo). An employee shall be understood to mean any natural person who supplies intellectual or material services, under dependency or subordination, pursuant to a contract of employment. A minimum of 85 per cent of employees who work for the same employer shall be Chilean natural persons. This rule applies to employers with more than 25 employees under a contract of employment (contrato de trabajo). Expert technical personnel shall not be subject to this provision, as determined by the Directorate of Labour (Dirección del Trabajo). An employee shall be understood to mean any natural person who supplies intellectual or material services, under dependency or subordination, pursuant to a contract of employment. D.F.L. 1 of the Ministry of Labour and Social Welfare, Official Gazette, January 24, 1994, Labour Code, Preliminary Title, Book I, Chapter III (D.F.L. 1 del Ministerio del Trabajo y Previsión Social, Diario Oficial, enero 24, 1994, Código del Trabajo, Título preliminar, Libro I, Capítulo III) All Sectors The exploration, exploitation, and treatment (beneficio) of liquid or gaseous hydrocarbons, deposits of any kind existing in sea waters subject to national jurisdiction, and deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, can be the object of administrative concessions or special operating contracts, subject to the requirements and the conditions to be determined, in each case by a Supreme Decree of the President of the Republic. For greater certainty, it is understood that the term treatment (beneficio) shall not include the storage, transportation or refining of the energy material referred to in this paragraph. The exploration, exploitation, and treatment (beneficio) of liquid or gaseous hydrocarbons, deposits of any kind existing in sea waters subject to national jurisdiction, and deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, can be the object of administrative concessions or special operating contracts, subject to the requirements and the conditions to be determined, in each case by a Supreme Decree of the President of the Republic. For greater certainty, it is understood that the term treatment (beneficio) shall not include the storage, transportation or refining of the energy material referred to in this paragraph. 10

11 The production of nuclear energy for peaceful purposes may only be carried out by the Chilean Nuclear Energy Commission (Comisión Chilena de Energía Nuclear) or, with its authorization, jointly with third persons. Should the Commission grant such an authorization, it may determine the terms and conditions thereof. The production of nuclear energy for peaceful purposes may only be carried out by the Chilean Nuclear Energy Commission (Comisión Chilena de Energía Nuclear) or, with its authorization, jointly with third persons. Should the Commission grant such an authorization, it may determine the terms and conditions thereof. Political Constitution of the Republic of Chile, Chapter III (Constitución Política de la República de Chile, Capítulo III) Law , Official Gazette, January 21, 1982, Constitutional Organic Law on Mining Concessions, Titles I, II and III (Ley , Diario Oficial, enero 21, 1982, Orgánica Constitucional sobre Concesiones Mineras, Títulos I, II y III) Law , Official Gazette, October 14, 1983, Mining Code, Titles I and II (Ley , Diario Oficial, octubre 14, 1983, Código de Minería, Títulos I y II) Law , Official Gazette, October 23, 1965, Creates the Chilean Nuclear Energy Commission, Titles I, II and III (Ley , Diario Oficial, octubre 23, 1965, crea la Comisión Chilena de Energía Nuclear, Títulos I, II y III) 11

12 All sectors The exploration, exploitation, and treatment (beneficio) of lithium, deposits of any kind existing in sea waters subject to national jurisdiction, and deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, can be the object of administrative concessions or special operating contracts, subject to the requirements and the conditions to be determined, in each case by a Supreme Decree of the President of the Republic. Chile has the right of first offer at market prices and terms for the purchase of mineral products when thorium and uranium are contained in significant quantities. For greater certainty, Chile may require that producers separate from mining products the portion of: (1) liquid or gaseous hydrocarbons; (2) lithium; (3) deposits of any kind existing in sea waters subject to national jurisdiction; and (4) deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, that exists, in significant amounts, in such mining products and that can be economically and technically separated, for delivery to or for sale on behalf of the State. For these purposes, economically and technically separated means that the costs incurred to recover the four types of substances referred to above through a sound technical procedure and to commercialize and deliver those substances shall be lower than their commercial value. The exploration, exploitation, and treatment (beneficio) of lithium, deposits of any kind existing in sea waters subject to national jurisdiction, and deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, can be the object of administrative concessions or special operating contracts, subject to the requirements and the conditions to be determined, in each case by a Supreme Decree of the President of the Republic. Chile has the right of first offer at market prices and terms for the purchase of mineral products when thorium and uranium are contained in significant quantities. For greater certainty, Chile may require that producers separate from mining products the portion of: (1) liquid or gaseous hydrocarbons; (2) lithium; (3) deposits of any kind existing in sea waters subject to national jurisdiction; and (4) deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, that exists, in significant amounts, in such mining products and that can be economically and technically separated, for delivery to or for sale on behalf of the State. For these purposes, economically and technically separated means that the costs incurred to recover the four types of substances referred to above through a sound technical procedure and to commercialize and deliver those substances shall be lower than their commercial value. 12

13 Furthermore, only the Chilean Nuclear Energy Commission, or parties authorized by the said Commission, may execute or enter into juridical acts regarding extracted natural atomic materials and lithium, as well as their concentrates, derivatives and compounds. Furthermore, only the Chilean Nuclear Energy Commission, or parties authorized by the said Commission, may execute or enter into juridical acts regarding extracted natural atomic materials and lithium, as well as their concentrates, derivatives and compounds. Political Constitution of the Republic of Chile, Chapter III (Constitución Política de la República de Chile, Capítulo III) Law , Official Gazette, January 21, 1982, Constitutional Organic Law on Mining Concessions, Titles I, II and III (Ley , Diario Oficial, enero 21, 1982, Orgánica Constitucional sobre Concesiones Mineras, Títulos I, II y III) Law , Official Gazette, October 14, 1983, Mining Code, Titles I and III (Ley , Diario Oficial, octubre 14, 1983, Código de Minería, Títulos I y III) Law , Official Gazette, October 23, 1965, Creates the Chilean Nuclear Energy Commission, Titles I, II and III (Ley , Diario Oficial, octubre 23, 1965, crea la Comisión Chilena de Energía Nuclear, Títulos I, II y III) All Sectors Commercial Presence (mode 3) This Schedule applies only to the following types of commercial presence for foreign investors: public corporations open or closed (sociedades anónimas abiertas y cerradas), privatelimited companies (sociedades de responsabilidad limitada), and subsidiaries (agencias de sociedades extranjeras). Commercial Presence (mode 3) This Schedule applies only to the following types of commercial presence for foreign investors: public corporations open or closed (sociedades anónimas abiertas y cerradas), privatelimited companies (sociedades de responsabilidad limitada), and subsidiaries (agencias de sociedades extranjeras). 13

14 Sector o subsector Limitations on market access Limitations on national treatment Additional commitments II. SECTOR-SPECIFIC COMMITMENTS I. BUSINESS SERVICES A. Professional Services 1 1. Legal Services (861) (1) and (3) None, except: Justice ancillaries (auxiliaries de la administración de justicia) must be resident in the same place or city as the court for which they render services is domiciled. Receivers in bankruptcy (síndicos de quiebra) must have not less than three years experience and must be duly authorized by the Minister of Justice (Ministerio de Justicia), and can only work in the place they reside. (2) None Only Chilean and foreign nationals with residence in Chile, who have completed the totality of their legal studies in the country, shall be authorized to practice as lawyers (abogados). Only lawyers (abogados) duly qualified to practice law shall be authorized to plead a case in the Chilean courts and to file the first legal action or claim of each party. 1 Without prejudice to what is established in Part I (Horizontal Commitments), suppliers of the professional services included in this Schedule may be subject to assessment by the competent authorities in connection with which they must show that they fulfill the requirements designed to ensure that they perform competently in the sector. 14

15 The following documents, among others, shall be drawn up solely by lawyers (abogados): drafting of articles of incorporation and amendments thereto; mutual termination of obligations or liquidation of corporations; liquidation of community property between spouses (sociedad conyugal); distribution of property; articles of incorporation of juridical persons, associations, water canal members (asociaciones de canalistas) and cooperative associations (cooperativas); agreements governing financial transactions; corporate bond issuance agreements; and sponsoring applications for legal representation made by corporations and foundations. None of the above measures apply to foreign legal consultants who practice or advice on international law or another TiSA member s law. Justice ancillaries (auxiliaries de la administración de justicia) must have their residence in the same city or place where the court house for which they render services is domiciled. Public defenders (defensores públicos), public notaries (notarios públicos), and custodians (conservadores) shall be Chilean natural persons and fulfil the same requirements needed to become a judge. Archivists (archiveros), public defenders (defensores públicos) and arbitrators at law (árbitros de derecho) must be lawyers (abogados) and, therefore, must be Chilean or foreign nationals with residence in Chile who have completed the totality of their legal studies in the country. TiSA members lawyers may assist in arbitration when dealing with TiSA members law and international law and the private parties request it. Only Chilean natural persons, with the right to vote, and foreign natural persons with permanent residence and the right to vote, can act as process servers (receptors judiciales) and superior court attorneys (procuradores del número). 15

16 Only Chilean natural persons, foreign natural persons with permanent residence in Chile or Chilean juridical persons may be auctioneers (martilleros públicos). Receivers in bankruptcy (síndicos de quiebra) must have a professional or technical degree granted by a university or a professional or technical institute recognised by Chile. Receivers in bankruptcy must have at least three years of experience in the commercial, economic or judicial field. Decree 110 of the Ministry of Justice, Official Gazette, March 20, 1979 (Decreto 110 del Ministerio de Justicia, Diario Oficial, marzo 20, 1979) Law , Official Gazette, May 18, 1982 (Ley , Diario Oficial, mayo 18, 1982) Tribunals Organic Code, Titles XI, XII and XV (Código Orgánico de Tribunales, Títulos XI, XII y XV) Real State Custodian Registry Act, Titles I, II and III (Reglamento del Registro Conservador de Bienes Raíces, Títulos I, II y III) Law , Official Gazette, May 22, 1982, Title I (Ley , Diario Oficial, mayo 22, 1982, Título I) Decree 197 of the Ministry of Economic Affairs, Development and Reconstruction, Official Gazette, August 8, 1985 (Decreto 197 del Ministerio de Economía, Fomento y Reconstrucción, Diario Oficial, agosto 8, 1985) Law , Official Gazette, October 28, 1982, Title III (Ley , Diario Oficial, octubre 28, 1982, Título III) 16

17 Accounting, auditing and bookkeeping services 2 (862) (1) and (3) None, except: The external auditors of financial institutions must be registered in the Registry of External Auditors kept by the Superintendence of Banks and Financial Institutions (Superintendencias de Bancos e Instituciones Financieras) and the Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros). Only Chilean juridical persons legally incorporated in Chile as partnerships (sociedades de personas) or associations (asociaciones), and whose main line of business is auditing services, may be inscribed in the Register. (2) None. External auditors of financial institutions must be registered in the Register of External Auditors kept by the Superintendence of Banks and Financial Institutions (Superintendencia de Bancos e Instituciones Financieras) and the Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros). Only Chilean juridical persons legally incorporated as partnerships (sociedades de personas) or associations (asociaciones) and whose main line of business is auditing services may be inscribed in the Register. Law , Official Gazette, October 22, 1981, Corporations Law, Title V (Ley , Diario Oficial, octubre 22, 1981, Ley de Sociedades Anónimas, Título V) Supreme Decree 587 of the Ministry of Finance, Official Gazette, November 13, 1982, Corporations Act (Decreto Supremo 587 del Ministerio de Hacienda, Diario Oficial, noviembre 13, 1982, Reglamento de Sociedades Anónimas) Decree Law 1.097, Official Gazette, July 25, 1975, Titles I, II, III and IV (Decreto Ley 1.097, Diario Oficial, julio 25, 1975, Títulos I, II, III y IV) Decree Law 3.538, Official Gazette, December 23, 1980, Titles I, II, III and IV (Decreto Ley 3.538, Diario Oficial, diciembre 23, 1980, Títulos I, II, III y IV) Circular 2.714, October 6, 1992; Circular 1, January 17, 1989; Chapter 19 Updated Collection, Superintendency of Banks and Financial Institutions Norms on External Auditors (Circular 2.714, octubre 6,1992; Circular 1, enero 17, 1989; Capítulo 19 de la Recopilación Actualizada de Normas de la Superintendencia de Bancos e Instituciones Financieras sobre auditores externos) Circulars 327, June 29, 1983 and 350, October 21, 1983, Superintendence of Securities and Insurance (Circulares 327, junio 29, 1983 y 350, octubre 21, 1983, de la Superintendencia de Valores y Seguros) 2 Financial statements must be endorsed by a professional legally authorized to practice in Chile. 17

18 2. Taxation services (863) (1), (2), and (3) None, except: The external auditors of financial institutions must be registered in the Registry of External Auditors kept by the Superintendence of Banks and Financial Institutions (Superintendencias de Bancos e Instituciones Financieras) and the Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros). Only Chilean juridical persons legally incorporated in Chile as partnerships (sociedades de personas) or associations (asociaciones), and whose main line of business is auditing services, may be inscribed in the Registry. External auditors of financial institutions must be registered in the Registry of External Auditors kept by the Superintendence of Banks and Financial Institutions (Superintendencia de Bancos e Instituciones Financieras) and the Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros). Only Chilean juridical persons legally incorporated as partnerships (sociedades de personas) or associations (asociaciones) and whose main line of business is auditing services may be inscribed in the Registry. Law , Official Gazette, October 22, 1981, Corporations Law, Title V (Ley , Diario Oficial, octubre 22, 1981, Ley de Sociedades Anónimas, Título V) Supreme Decree 587 of the Ministry of Finance, Official Gazette, November 13, 1982, Corporations Act (Decreto Supremo 587 del Ministerio de Hacienda, Diario Oficial, noviembre 13, 1982, Reglamento de Sociedades Anónimas) Decree Law 1.097, Official Gazette, July 25, 1975, Titles I, II, III and IV (Decreto Ley 1.097, Diario Oficial, julio 25, 1975, Títulos I, II, III y IV) Decree Law 3.538, Official Gazette, December 23, 1980, Titles I, II, III and IV (Decreto Ley 3.538, Diario Oficial, diciembre 23, 1980, Títulos I, II, III y IV) Circular 2.714, October 6, 1992; Circular 1, January 17, 1989; Chapter 19 Updated Collection, Superintendency of Banks and Financial Institutions Norms on External Auditors (Circular 2.714, octubre 6,1992; Circular 1, enero 17, 1989; Capítulo 19 de la Recopilación Actualizada de Normas de la Superintendencia de Bancos e Instituciones Financieras sobre auditores externos) Circulars 327, June 29, 1983 and 350, October 21, 1983, Superintendence of Securities and Insurance (Circulares 327, junio 29, 1983 y 350, octubre 21, 1983, de la Superintendencia de Valores y Seguros). 18

19 3. Architectural services (8671) 4. Engineering services (8672) 5. Veterinary services (93201) 6. Services provided by midwives, nurses, physiotherapists and paramedical personnel (93191) B. Computer and related services 1. Consultancy services related to the installation of computer hardware (841) 2. Software implementation services (842) 3. Data processing services (843) 4. Data base services (844) 19

20 5. Maintenance and repair services of office machinery and equipment including computers (845) (4) Unbound, except as indicated in horizontal section. 6. Other computer services (4) Unbound, except as indicated in horizontal section. C. Research and Development Services 1. Research and development services on natural sciences (part of 851) (part of 853) (part of 8675) (1) and (3) None, except: Natural persons representing foreign juridical persons, or natural persons residing abroad, intending to perform explorations for work of a scientific or technical nature, or mountain climbing in areas that are adjacent to Chilean borders shall apply for the appropriate authorization through a Chilean consul in the country of domicile of the natural person. Foreign natural and juridical persons intending to conduct research in the 200- mile maritime zone shall be required to submit a request six months in advance to the Chilean Army Hydrographic Institute (Instituto Hidrográfico de la Armada de Chile), and shall comply with the requirements established in the corresponding regulation. Chilean natural and juridical persons shall be required to submit a request three months in advance to the Chilean Army Hydrographic Institute (Instituto Hidrográfico de la Armada de Chile) and shall comply with the requirements established in the corresponding regulation. Natural persons representing foreign juridical persons, or natural persons residing abroad, intending to perform explorations for work of a scientific or technical nature, or mountain climbing in areas that are adjacent to Chilean borders shall apply for the appropriate authorization through a Chilean consul in the country of domicile of the natural person. The Chilean consul shall then send such application directly to the Directorate of Borders and Frontiers (Dirección Nacional de Fronteras y Límites del Estado). The Directorate may order that one or more Chilean natural persons working in the appropriate related activities shall join the explorations in order to become acquainted with the studies to be undertaken. 20

21 The Chilean consul shall then send such application directly to the Directorate of Borders and Frontiers (Dirección Nacional de Fronteras y Límites del Estado). The Directorate may order that one or more Chilean natural persons working in the appropriate related activities shall join the explorations in order to become acquainted with the studies to be undertaken. The Operations Department of the Directorate of Borders and Frontiers (Departamento de Operaciones de la Dirección Nacional de Fronteras y Límites del Estado) shall decide to announce whether it authorizes or rejects geographic or scientific explorations to be carried out by foreign juridical or natural persons in Chile. The National Directorate of Borders and Frontiers shall authorize and will supervise all explorations involving work of scientific or technical nature, or mountain climbing, that foreign juridical persons or natural persons residing abroad intend to carry out in areas adjacent to Chilean borders. (2) None The Operations Department of the Directorate of Borders and Frontiers (Departamento de Operaciones de la Dirección Nacional de Fronteras y Límites del Estado) shall decide to announce whether it authorizes or rejects geographic or scientific explorations to be carried out by foreign juridical or natural persons in Chile. The National Directorate of Borders and Frontiers shall authorize and will supervise all explorations involving work of scientific or technical nature, or mountain climbing, that foreign juridical persons or natural persons residing abroad intend to carry out in areas adjacent to Chilean borders. Supreme Decree 711 of the Ministry of National Defence, Official Gazette, October 15, 1975 (Decreto Supremo 711 del Ministerio de Defensa Nacional, Diario Oficial, octubre 15, 1975) D.F.L. 11 of the Ministry of Economic Affairs, Development and Reconstruction, Official Gazette, December 5, 1968 (D.F.L. 11 del Ministerio de Economía, Fomento y Reconstrucción, Diario Oficial, diciembre 5, 1968) Decree 559 of the Ministry of Foreign Affairs, Official Gazette, January 24, 1968 (Decreto 559 del Ministerio de Relaciones Exteriores, Diario Oficial, enero 24, 1968) D.F.L. 83 of the Ministry of Foreign Affairs, Official Gazette, March 27, 1979 (D.F.L. 83 del Ministerio de Relaciones Exteriores, Diario Oficial, marzo 27, 1979). 21

22 2. Research and development services on social sciences and humanities (part of 852) Foreign juridical or foreign natural persons intending to perform excavations, surveys, probing and/or collect anthropological, archaeological or paleontological material must apply for a permit from the National Monuments Council (Consejo de Monumentos Nacionales). In order to obtain the permit, the person in charge of the research must be engaged by a reliable foreign scientific institution and must be working in collaboration with a Chilean governmental scientific institution or a Chilean university. The aforementioned permit can be granted to (a) Chilean researchers having the pertinent scientific background in archaeology, anthropology or palaeontology, duly certified as appropriate, and also having a research project and due institutional sponsorship; and (b) foreign researchers, provided that they are engaged by a reliable scientific institution and that they work in collaboration with a Chilean governmental scientific institution or a Chilean university. Museum directors or curators acknowledged by the National Monuments Council (Consejo de Monumentos Nacionales), professional archaeologists, anthropologists or palaeontologists, as appropriate, and the members of the Chilean Society of Archaeology (Sociedad Chilena de Arqueología) shall be authorised to perform salvage-related works. Salvage related works involve the urgent recovery of data and archaeological, anthropological or paleontological artefacts or species threaten by imminent loss. Law , Official Gazette, February 4, 1970, Title V (Ley , Diario Oficial, febrero 4, 1970, Título V) Supreme Decree 484 of the Ministry of Education, Official Gazette, April 2, 1991 (Decreto Supremo 484 del Ministerio de Educación, Diario Oficial, abril 2, 1991) 22

23 3. Interdisciplinary R&D services (853) Same limitations as indicated above for Research and development services on natural sciences and on social sciences and humanities. D. Real Estate Services 1. Involving own or leased property (821) 2. On a fee or contract basis (822) E. Rental/Leasing Services without Operators 1. Relating to ships (83103) 2. Relating to aircraft (83104) 3. Relating to other transport equipment ( ) 23

24 4. Relating to other machinery and equipment ( ) F. Other Business Services 1. Advertising services 871, except other advertising services (CPC 8719) 2. Market research and public opinion polling services (864) 3. Management consulting service (865) (except 86509) 4. Services related to management consulting (866), except for those arbitration proceedings that Chilean legislation designates as being under the exclusive jurisdiction of national arbitral tribunals or within the purview of an arbitrator at law. Chilean legislation designates some arbitration proceedings as being under the exclusive jurisdiction of national arbitral tribunals or within the purview of an arbitrator at law (árbitro de derecho), whom, by legal mandate, shall be Chilean nationals. Technical testing and analysis services (8676) 24

25 5. Services incidental to agriculture, hunting and forestry (881) Any person who owns guns, explosives or similar substances must register with the appropriate authority in its domicile for which purpose a request shall be submitted to the General Directorate for National Mobilization of the Ministry of National Defense (Dirección General de Movilización Nacional del Ministerio de Defensa Nacional). Law , Official Gazette, October 21, 1972, Title I (Ley , Diario Oficial, octubre 21, 1972, Título I) Supreme Decree 77 of the Ministry of National Defence, Official Gazette, August 14, 1982 (Decreto Supremo 77 del Ministerio de Defensa Nacional, Diario Oficial, agosto 14, 1982) 6. Services incidental to fishing (882) (1), (2) and (3) Unbound Foreign natural and juridical persons intending to conduct research in the 200- mile maritime zone shall be required to submit a request six months in advance to the Chilean Army Hydrographic Institute (Instituto Hidrográfico de la Armada de Chile), and shall comply with the requirements established in the corresponding regulation. Chilean natural and juridical persons shall be required to submit a request three months in advance to the Chilean Army Hydrographic Institute (Instituto Hidrográfico de la Armada de Chile) and shall comply with the requirements established in the corresponding regulation. Only Chilean natural or juridical persons constituted in accordance with Chilean law and foreigners with permanent residency may hold an authorization or concession to carry out aquaculture activities. Only Chilean natural persons or juridical persons constituted in accordance with Chilean law and foreigners with permanent residency may hold permits to harvest and catch hydrobiological species. 25

26 Only Chilean vessels are permitted to fish in internal waters, in the territorial sea and in the exclusive economic zone. Chilean vessels are those defined in the Navigation Law (Ley de Navegación). Access to industrial extractive fishing activities shall be subject to prior registration of the vessel in Chile. Only a Chilean natural or juridical person may register a vessel in Chile. Such juridical person may register a vessel in Chile. Such juridical person must be constituted in Chile with principle domicile and real and effective seat in Chile. The president, manager and the majority of the directors or administrators must be Chilean natural persons. In addition, more than fifty per cent of its equity capital must be held by Chilean natural or juridical persons. For these purposes, a juridical person with ownership participation in another juridical person that owns a vessel has to comply with all the requirements mentioned above. A joint ownership (comunidad) may register a vessel if (1) the majority of the joint ownership is Chilean with domicile and residency in Chile; (2) the administrators are Chilean natural persons; and (3) the majority of the rights of the joint ownership(comunidad) belong to a Chilean natural or juridical person. For these purposes, a juridical person with ownership participation in a joint ownership (comunidad) that owns a vessel has to comply with all the requirements above. An owner (natural or juridical person) of a fishing vessel registered in Chile prior to June 30, 1991, shall not be subject to the nationality requirement mentioned above. In cases of reciprocity granted to Chilean vessels by any other country, fishing vessels specifically authorized by the maritime authorities pursuant to powers conferred by law may be exempted from the requirements mentioned above on equivalent terms provided to Chilean Vessels by that country. Access to small-scale fishing (pesca artesanal) activities shall be subject to registration in the registry for small scale fishing (Registro de Pesca Artesanal). Registration for small-scale fishing (pesca artesanal) is only granted to Chilean natural persons and foreign natural persons with permanent residency, or a Chilean juridical person constituted by the aforementioned persons. 26

27 Guard services (87305) 7. Maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment) ( ) (1), (2) and (3), None, except: Only Chilean nationals may provide services as private armed security guards. Supreme Decree 711 of the Ministry of National Defence, Official Gazette, October 15, 1975 (Decreto Supremo 711 del Ministerio de Defensa Nacional, Diario Oficial, octubre 15, 1975) Law , Official Gazette, January 21, 1992, General Law on Fisheries and Aquaculture, Titles I and VI (Ley , Diario Oficial, enero 21, 1992, Ley General de Pesca y Acuicultura, Títulos I y VI) Law , Official Gazette, January 21, 1992, General Law on Fisheries and Aquaculture, Titles I, III, IV and IX (Ley , Diario Oficial, enero 21, 1992, Ley General de Pesca y Acuicultura, Títulos I, III, IV y IX) Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I and II (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I y II) Only Chilean nationals may provide services as private armed security guards. Decree of the Ministry of Interior, Official Gazette, November 14, 1994 (Decreto del Ministerio del Interior, Diario Oficial, noviembre 14, 1994) 8. Building-cleaning services (874) 9. Photographic services (875) 27