How much does it cost to import from China to Chile?
By Martín Novoa, Founder of Dinasty Partners · Updated · 6 min read
Short answer
The cost of importing from China to Chile is the sum of the FOB price, freight and insurance to Chile, the import duty (0% for most products under the Chile–China FTA with a certificate of origin; 6% without it), 19% VAT (IVA) on the CIF value plus duty, and local costs: port charges, customs broker and transport to your warehouse.
The components of the cost
| Component | What it is | How it's calculated |
|---|---|---|
| FOB | Price of the goods loaded at the Chinese port | Quoted by the factory |
| Freight and insurance | Ocean transport and its insurance to Chile | Depends on volume, route and season |
| CIF | FOB + freight + insurance | The tax base |
| Duty (ad valorem) | Customs tariff | 0% under the Chile–China FTA with certificate of origin · 6% without it |
| Import VAT (IVA) | The same VAT as on any sale | 19% on CIF + duty |
| Local costs | Port, storage, customs broker, transport | Vary by port and volume |
Import VAT is not a final cost for a registered business: it is recovered as a tax credit, like the VAT on any purchase. What you do need is the cash to pay it at clearance.
Worked example
A US$ 10,000 FOB purchase with US$ 1,500 in freight and insurance, for a product that qualifies for the FTA and arrives with a certificate of origin:
| Item | Amount (US$) |
|---|---|
| FOB | 10,000 |
| Freight and insurance | 1,500 |
| CIF | 11,500 |
| Duty 0% (FTA) | 0 |
| VAT 19% on CIF | 2,185 |
| Total before local costs | 13,685 |
Where do the costs nobody quotes go?
- Samples and their air shipping, before production.
- Quality inspection in China before shipment.
- Port storage if the cargo is slow to leave.
- Transport from the port (San Antonio or Valparaíso) to your warehouse.
- Exchange-rate differences between the deposit and the balance paid to the factory.
Comparing factories on FOB price alone is misleading: a cheaper factory with defects or delays ends up costing more. Compare the landed cost at your warehouse.