WORLD TRADE
ORGANIZATIONG/SG/N/1/CHL/2
24 August 1999
(99-3520)
Committee on Safeguards Original:  Spanish
NOTIFICATION OF LAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TO SAFEGUARD MEASURES
CHILE
The following communication, dated 23 July 1999, has been received from the Permanent
Mission of Chile.
_______________
Pursuant to Article 12.6 of the Agreement on Safeguards, I have pleasure in communicating
herewith Chile's new legislation on investigation and imposition of safeguard measures.
The new legislation was adopted in Law No. 19.612, published in the Diario Oficial  (Official
Journal) of 31 May 1999.
Under the provisions of Law No. 19.612, the new safeguards provisions have been
incorporated into the law previously in force, namely Law No. 18.525.  In other words, the new Law
No. 19.612 is a law amending Law No. 18.525.
Law No. 18.525 is entitled "Rules on the Importation of Goods" and allows for the conduct of
investigations related to anti-dumping and count ervailing duties;  the investigating authority
mentioned in this Law has now also been given th e authority to initiate investigations and impose
safeguard measures.
In addition to the foregoing, you will find attached the Regulations on application of
safeguard measures issued in Ministry of Finan ce Decree No. 909 of 17 June 1999 and published in
the Diario Oficial  of 23 June 1999.
For a better understanding of this notification, the following three annexes are attached:Annex I: The text of Law No. 19.612.
Annex II: The text of Law No. 18.525 as it now appears following the recent
amendments in Law No. 19.612 (the provisions concerning safeguard
measures are in bold italics).
Annex III: Ministry of Finance Decree No. 909-99, implementing the law.G/SG/N/1/CHL/2
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ANNEX I
LAW NO. 19.612
AMENDING LAW NO. 18.525 ON DISTORTI ON OF IMPORT PRICES FOR THE
PURPOSE OF ESTABLISHING A SAFEGUARDS PROCEDURE
PURSUANT TO THE MARRAKESH AGREEMENT
Bearing in mind that the National Congress has approved the following draft Law
"Single article  - add the following amendments to Law No. 18.525:
(a) Add the following words in the first paragraph of Article 4 after the word
"surcharges" and delete the comma following it:  "as referred to in Article 9 or".
(b) Replace Article 9 by the following:
Article 9 . In the cases referred to in Article XIX of the General Agreement on Tariffs and Trade
1994 and the Agreement on Safeguards of the World Trade Organization, the President of the
Republic may apply ad valorem  tariff surcharges, through a Supreme Decree of the Ministry of
Finance, subject to a favourable report by the Commission referred to in Article 11.
The surcharges referred to in the preceding paragraph may be applied provisionally if the
Commission determines that the circumstances referred to in Article 6 of the Agreement on
Safeguards of the World Trade Organization exis t.  The Commission shall have a period not
exceeding 30 days from the date of initiation of the investigation in which to undertake thisdetermination.
The Commission may initiate an investigation pursuant to a written request submitted by the
domestic industry affected by the serious injury or threat of serious injury.  Domestic industry shall be
interpreted as referring to the industry described in Article 4.1(c) of the Agreement on Safeguards of
the World Trade Organization.  The Commission may on its own initiative conduct an investigation
when it possesses information that justifies so doing.
The surcharges referred to in this Article shall not be applied for more than one year,
including the period of provisional application of the measure.  This period may be extended for one
further period not exceeding one year when the reasons for their application still exist, subject to a
favourable report by the Commission referred to in the first paragraph above.  Extension of thesurcharge shall include a timetable for its gradual dismantling, unless there are exceptional
circumstances duly substantiated by the Commission.
Application of a surcharge which, added to the ta riff in effect, amounts to a figure higher than
the tariff bound in the World Trade Organization shall require the approval of three-quarters of themembers of the Commission.
The application of emergency or safeguard measures provided in trade agreements shall be
governed, as a supplementary matter, by the rules of this Article and its regulations.  Where there is
inconsistency between the regulations in this Law and those in the aforementioned agreements, thelatter shall prevail to the extent of the inconsistency.
When compensation with another country is agreed under a safeguard measure, the President
of the Republic may, through a Supreme Decree of the Ministry of Finance and for the period ofG/SG/N/1/CHL/2
Page 3
application of the measure, lower tariffs or accelerate the tariff reduction process provided in the
corresponding trade agreement.
The President of the Republic may, through a Supreme Decree of the Ministry of Finance,
raise the tariffs applicable to goods from other countries when no agreement on adequatecompensation under a safeguard measure has been agreed by this country in respect of Chilean goods.
(c) In Article 10, delete the words beginning "Surcharges of" and ending with "24 per
cent ad valorem  and".
(d) In Article 10, delete the words "these surcharges" between the words "which" and
"anti-dumping duties".
(e) In the fifth paragraph of Article 11, delete the words "these surcharges" and replace
the words "minimum customs values" by "surcharges".
(f) Replace the tenth paragraph of Article 11 by the following:
"The Commission shall be responsible for considering complaints concerning the
application of the Agreement on Subsidies and Countervailing Measures, the
Agreement on Safeguards and the Agreement on Implementation of Article VI of the
General Agreement on Tariffs and Trade 1994, which form part of the MarrakeshAgreement establishing the World Trade Organization".
In as much as I have approved and endorsed it;  to be enacted and implemented as a law of
the Republic.  Santiago, 28 May 1999.  EDUARDO FREI RUIZ-TAGLE, President of the Republic.
Eduardo Aninat Ureta, Minister for Finance.  Jorge Leiva Lavalle, Minister for the Economy,Development and Reconstruction.G/SG/N/1/CHL/2
Page 4
ANNEX II
LAW NO. 18.525
RULES ON THE IMPORTATION OF GOODS
Article 1. All foreign goods to be imported into Chile shall be subject to the payment of the
duties laid down in the Customs Tariff or in other relevant legal provisions.
The total or partial exemptions provided in the ta riff, in special laws or international treaties,
shall be exempt from the provisions of the preceding paragraph.
Article 2. The customs duties established for various categories of goods in the official text of
the Tariff approved by Finance Decree No. 679 of 1981, published in the Diario Oficial of
14 December 1981, and its subsequent amendments, and the duties to be applied under the 1980
Montevideo Treaty establishing the Latin American Integration Association (LAIA), shall form partof this Law.
The general rules on interpretation of the ta riff nomenclature, the complementary general
rules, the rules on units and packaging, the rules on valuation procedures and the notes on each
heading contained in the Tariff referred to in the preceding paragraph shall also form part of this Law.
Article 3. The rules on surtaxes and weights shall be fixed in a resolution by the Director of the
National Customs Service.  The explanatory notes to the nomenclature issued or to be issued by the
Brussels Customs Cooperation Council shall be used to interpret the Customs Tariff without prejudice
to the authority given to the Director of the Service under Article 4, No. 7, of the Basic Law on theNational Customs Service.
Article 4. Where the President of the Republic breaks down the headings in the customs tariff
or amends these headings for statistical purposes or for any other administrative reasons, this shall not
affect the customs duty to be paid upon import of the goods laid down in Article 2, unless the
breakdown is needed to apply the surcharges referred to in Article 9 or anti-dumping duties or
countervailing duties referred to Article 10.
The National Customs Service may make the breakdowns and amendments referred to in the
preceding paragraph, subject to authorization by the President of the Republic.  In such cases, the
resolutions of the Service shall be published in the Diario Oficial.
The Director of the National Customs Service shall be responsible for indicating the customs
categories in which the goods shall be classified and shall be obliged to use the nomenclature in the
Customs Tariff for this purpose.
Article 5. The taxable base for ad valorem  duties shall be the customs value of the goods
entering Chile.  This value shall be determined in accordance with the provisions of Articles 6, 7, 8
and 9 of this Law.
Article 6. Where sales take place under free market conditions, the customs value shall be
determined on the basis of the transaction value, that is the price actually paid or payable for thegoods when sold for import into Chile.
A transaction shall be deemed to have taken place under free market conditions between a
buyer and an independent seller when the payment of the price is the only transaction by the buyer
and there is no contractual or other commercial relation between the buyer and the seller and partnersG/SG/N/1/CHL/2
Page 5
other than that created by the transaction of the goods in question.  Two persons shall be deemed to be
related commercially if one of them has any interest whatsoever in the business of the other or if both
have a common interest in any business or if a third party has a direct or indirect interest in the
business of one of them.
Where these free conditions do not exist, the taxable base of the ad valorem  duties shall be
the price that it is deemed the goods could obtain at the time the customs duties are payable in a
transaction under free market conditions between an independent buyer and seller.
Article 7. The customs value of the imported goods shall include all the costs incurred for
transport to the place of importation.  These costs shall include loading and unloading, transport,
commission, insurance, brokerage, interest and the cost of packing unless they have their owncustoms regime.  The place of importation of the goods shall be the place of entry for customs
formalities.  For the purposes of valuation, the customs duties shall be payable on the date appearing
on the corresponding customs declaration.
Article 8. In the cases referred to in the final paragraph of Article 6 or where there are grounds
for considering that the declared value is not th e actual value, the National Customs Service shall
establish the value taking into account the various elements which, in the transaction in question, are
contrary to the concept of a transaction under free market conditions.
For the purposes mentioned above, the Service shall consider the customs value of identical
goods or, if there are none, similar goods sold at the same level of trade as those being valued.  In
determining the value, the Service shall also  take into account reliable information from
manufacturers or may require information from national or foreign public authorities.  The same
procedure shall be followed when the importation of the goods into Chile does not come under a sales
transaction.  In the case of used goods, when taking into account the price of new identical or similargoods, reductions for use and age shall be taken into account as appropriate.
The valuation established on the basis of the rules in this Law shall constitute the taxable base
for the application of ad valorem  duties or for fixing the amount corresponding to the difference in
duty if the import declaration has already been processed.  The acts of the National Customs Service
modifying the declared value may be requested in conformity with the procedure laid down in
Articles 132 et seq. of the Customs Order.
Article 9. In the cases referred to in Article XIX of the General Agreement on Tariffs and
Trade 1994 and the Agreement on Safeguards of the World Trade Organization, the President of
the Republic may apply ad valorem tariff surcharges, through a Supreme Decree of the Ministry of
Finance, subject to a favourable report by the Commission referred to in Article 11.
The surcharges referred to in the preceding pa ragraph may be applied provisionally if the
Commission determines that the circumstances referred to in Article 6 of the Agreement on
Safeguards of the World Trade Organization exist.  The Commission shall have a period not
exceeding 30  days from the date of initiation of the investigation in which to undertake thisdetermination.
The Commission may initiate an investigation pursuant to a written request submitted by
the domestic industry affected by the serious injury or threat of serious injury.  Domestic industry
shall be interpreted as referring to the industry  described in Article 4.1(c) of the Agreement on
Safeguards of the World Trade Organization.  Th e Commission may on its own initiative conduct
an investigation when it possesses information that justifies so doing.
The surcharges referred to in this Article shall not be applied for more than one year,
including the period of provisional application of the measure.  This period may be extended forG/SG/N/1/CHL/2
Page 6
one further  period not exceeding one year when the reasons for their application still exist, subject
to a favourable report by the Commission referred to in the first paragraph above.  Extension of the
surcharge shall include a timetable for its gradual dismantling, unless there are exceptional
circumstances duly substantiated by the Commission.
Application of a surcharge which, added to the tariff in effect, amounts to a figure higher
than the tariff bound in the World Trade Organizat ion shall require the approval of three quarters
of the members of the Commission.
The application of emergency safeguard measures provided in trade agreements shall be
governed, as a supplementary matter, by the rules of this Article and its regulations.  Where there is
inconsistency between the regulations in this Law and those in the aforementioned agreements, thelatter shall prevail to the extent of the inconsistency.
When compensation with another country is  agreed under a safeguard measure, the
President of the Republic may, through a Supreme Decree of the Ministry of Finance and for the
period of application of the measure, lower tariffs or accelerate the tariff reduction processprovided in the corresponding trade agreement.
The President of the Republic may, through a Supreme Decree of the Ministry of Finance,
raise the tariffs applicable to goods from other countries when no agreement on adequate
compensation under a safeguard measure has been agreed by this country in respect of Chileangoods.
Article 10. Anti-dumping
1 and countervailing duties are hereby established for imports of goods
of which the entry into the country causes or threatens serious injury to the domestic industry by
entering at diminished prices as a result of artificial effects in their respective markets.  The Presidentof the Republic shall determine the goods to which these surcharges, anti-dumping duties and
countervailing duties shall apply, as well as their amount and duration, which shall not exceed one
year, after receipt of the report by the Commission referred to in the following Article.
Article 11. A national commission shall be established to investigate the existence of distortions
in the prices of imported goods. This commission shall comprise the Inspector-General of the
Economy, who shall be its Chairman;  two representa tives of the Central Bank of Chile, who shall be
designated by its Board;  representatives of the Ministry of Finance, the Ministry of Agriculture and
the Ministry of the Economy, Development and Reconstruction, who shall be designated by a
resolution published in the Diario Oficial ;  the National Director of Customs;  and a representative of
the Ministry of Foreign Affairs designated as me ntioned above.  The above-mentioned members shall
have the alternates provided for by law or, as design ated by their respective institutions by resolution
published in the Diario Oficial .
The commission shall be responsible for hearing complaints concerning distortions in the
prices of internationally traded goods.  To that end, it shall conduct an investigation in each case.  It
shall report the opening and subject of an investig ation within five working days after the complaint
has been duly lodged, by means of a notice published in the Diario Oficial .  Within 30 days from the
date of such notice, the Commission shall receive whatever information interested parties wish to
submit and request any reports it considers necessary.  Before reaching a decision, it shall also
conduct hearings of the interested parties, at their request, to hear their arguments.
The complaint submitted to the commission sha ll indicate the distortion and the manner in
which it causes or threatens material injury to the domestic industry affected.
                                                     
1 The words "surcharges of 3 per cent" up to the words "24 per cent ad valorem " are deleted.G/SG/N/1/CHL/2
Page 7
Without prejudice to the provisions of the preceding paragraphs, the commission may on its
own initiative conduct the investigations referred to  in this Article when it possesses information that
justifies so doing.  Investigations conducted by the commission on its own initiative shall be subject to
the same procedure as is established for investigation upon complaint to the extent applicable.
Within a maximum period of 90 days from the date of publication of the notice in Diario
Oficial , the commission shall make a decision on the facts under investigation on the basis of the
information in its possession.  If the commission considers that, on the basis of such information, it is
possible to establish the existence of distortions in the price of the product and that such distortions
cause or threaten material injury to the affected dom estic industry, it shall so state in the decision it
delivers for that purpose, in which it shall recommend, either jointly or separately, the establishment
of the surcharges2 referred to in Article 9 or3 the anti-dumping or countervailing duties referred to in
Article 10.
Before delivering the decision referred to in the preceding paragraph and at any stage in the
investigation, the commission may request the President of the Republic, through the Minister for
Finance, to establish within a period of 60 days provisional surcharges, anti-dumping orcountervailing duties or minimum customs values.  The duration of the surcharges, anti-dumping or
countervailing duties or minimum customs values applied under this paragraph shall not extend
beyond the date on which the final decision is adopted, and shall be payable if they were in force at
the time when the Customs Service accepted the corresponding import declaration for processing.
The commission may at any time request the competent authority to modify or repeal
measures adopted provisionally.
In the event that when the investigation has be en completed the commission decides that there
is no distortion in the price of the goods concerning which it requested provisional measures, or thatdistortions do exist but do not cause or threaten serious injury to the national economy, the persons
affected by the provisional surcharges, anti-dum ping or countervailing duties or minimum customs
values may apply for the refund of such payments.  Likewise, the persons concerned may request the
total or partial refund of amounts paid under such provisional measures when, following a
recommendation by the commission in the relevant resolution that definitive surcharges, anti-dumping
or countervailing duties or minimum customs values be imposed, the competent authority does not
impose any such measure or adopts a measure for a lower amount than that which had to be paidunder the provisional measure.  Current interest shall accrue on the amounts refunded.  Application
for refund must be made within 90 days of the date of entitlement to refund, after which the right
thereto shall lapse.
The resolutions of the commission shall be adopted by a majority of votes;  in the case of a
tied vote, the Chairman shall have the deciding vote.
The commission shall be responsible for considering complaints concerning the application
of the Agreement on Subsidies and Countervailing Measures, the Agreement on Safeguards and
the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade1994, which form part of the Marrakesh Agreement establishing the World Trade Organization.
Regulations enacted by Supreme Decree of the Ministry of Finance shall establish the
necessary procedure for the collection of the duties, taxes and other charges arising out of the
provisional imposition of minimum customs values, surcharges, anti-dumping and countervailingduties and their refund, where appropriate.  The regulations shall also determine the procedures
necessary for the implementation of the provisions of this Article.
                                                     
2 The words "minimum customs values" are replaced by the word "surcharges".
3 The words "surcharges and" are deleted.G/SG/N/1/CHL/2
Page 8
The Central Bank of Chile shall act as the Technical Secretariat of the commission referred to
in the first paragraph of this Article.G/SG/N/1/CHL/2
Page 9
ANNEX III
DECREE OF THE MINISTRY OF FINANCE NO. 909 OF 1999 ADOPTING
REGULATIONS FOR THE APPLICATION OF SAFEGUARD MEASURES
IN CONFORMITY WITH THE MARRAKESH AGREEMENT
No. 909-Santiago, 17 June 1999.  Having regard to Article 32, No. 8, of the Political
Constitution of the Republic;  Law No. 19.612, amending Law No. 18.525, on establishing a
safeguards procedure in conformity with the Marrakesh Agreement;  Law No. 18.525 on rules on the
importation of goods into Chile;  the Supreme Decr ee of the Ministry of Foreign Affairs No. 65 of
1995;  and the Supreme Decree of the Ministry of Finance No. 575 of 1993.
I HEREBY DECREE THAT THE FOLLOWING REGULATIONS ON APPLICATION OF THE
SAFEGUARD MEASURES REFERRED TO IN ARTICLE 9 OF LAW NO. 18.525,
REPLACED BY SECTION B OF THE SINGLE ARTICLE OF LAW NO. 19.612
ARE APPROVED.
Title 1.  The National Commission
Article 1. The National Commission created under Article 11 of Law No. 18.525, hereinafter
called the "Commission", shall be the body responsible for receiving requests and recommending theapplication of safeguard measures consisting of tariff surcharges when, following the relevant
investigation, it finds the existence of an increase in imports of a product in such volume, in absolute
terms or relative to domestic production, and the conditions which cause or threaten to cause serious
injury to the domestic industry producing like or directly competitive products.
Article 2. The investigations shall be conducted by the Commission in accordance with the
rules and procedures laid down in Law No. 18.525, Article XIX of the General Agreement on Tariffs
and Trade 1994, the Agreement on Safeguards of the World Trade Organization, the international
treaties and agreements signed by Chile, and the provisions of these regulations.
In addition, the provisions contained in Title I of Decree No. 575 of the Ministry of Finance,
published in the Diario Oficial of 20 August 1993 shall apply to the extent that they are compatible
with the provisions of these regulations.
Title 2.  Submission of Applications
Article 3. Application for the imposition of a safeguard measure shall be submitted by the
domestic industry affected by the injury or threat of serious injury.
"Domestic industry" shall be interpreted as the producers as a whole of the like products or
directly competitive products in Chile or whose collective output of the like or directly competitive
products constitutes a major proportion of the total domestic production of the products.
The interested parties shall make a written application to the Technical Secretariat of the
Commission, addressed to its Chairman, and shall complete the form provided by the Secretariat for
this purpose and drawn up in accordance with the instructions of the Commission.
Article 4. In the request for imposition of a safeguard measure, simple assertion,
unsubstantiated by relevant evidence shall not be considered sufficient and the application shall
contain such information as is reasonably available to the applicant in order to decide whether the
measure shall be applied.G/SG/N/1/CHL/2
Page 10
Article 5. Without prejudice to the provisions of Article 3, the Commission may on its own
initiative conduct an investigation when it possesses information that justifies so doing.  Such
investigations shall be subject to the same procedur e as is established for investigations following a
complaint, to the extent applicable.
Title 3.  Investigation
Article 6. After it has received a complaint, the Techncial Secretariat shall bring it to the
attention of the Commission, which shall decide whether or not to initiate an investigation.
Where it is decided to initiate an investigation, a notice shall be published in the Diario
Oficial at the expense of the applicant containing an extract of the information contained in the
complaint and, as the minimum,  the following indications:
(a) The name of the applicant(s);
(b) an indication of the imported product under investigation and its tariff classification;
(c) the form and time-limits for the Resolution;
(d) information on an increase in imports of a product in such volume, in absolute terms
or relative to domestic production, under conditions that cause or threaten to cause
serious injury to the domestic industry producing like or directly competitive
products;
(e) the date and place of the public hearing;
(f) the time-limit for submission of reports, declarations and other documents;  and
(g) the address, telephone and fax numbers of the Technical Secretariat indicating that
interested parties may submit documents, make applications and, in general, obtain
information on the conduct of the investigation from this Secretariat.
Article 7. Where the Commission decides not to initiate an investigation, it shall adopt a
resolution to that effect, rejecting the initiation of an investigation.  The resolution shall be notified to
the applicants by registered post within 10 (ten) working days following the decision.
Article 8. Within 30 (thirty) days from the date of publication of the notice of initiation of an
investigation, the Commission shall receive the information submitted by the interested parties and
shall request the reports it deems necessary for a proper investigation of the facts.
Article 9. The interested parties shall be given ample opportunity to provide the evidence they
deem necessary.  Where the interested parties have  supplied information deemed to be confidential
and do not provide a public summary thereof acceptable to the Commission, the latter may decide to
disregard this information in the investigation unless it can be demonstrated to its satisfaction from
appropriate sources that the information is correct.
Article 10. Before adopting a definitive decision, the Commission shall hold a public hearing at
which the interested parties shall be given an oppor tunity to submit evidence, present their arguments
and express their views on the information submitted by the other parties.  The date and place for the
hearing shall be communicated in the notice of initiation of an investigation.
Parties wishing to appear at the hearing shall make an application in writing to the Technical
Secretariat up until the third working day prior to the date fixed for the hearing.G/SG/N/1/CHL/2
Page 11
Interested parties shall be given a period of 3 (three) working days following the hearing to
provide written copies of the information given orally otherwise it shall not be taken into account in
the final determination.
Title 4.  Determination of Serious Injury
Article 11. Serious injury shall be understood to mean a significant impairment in the position of
a domestic industry.
Threat of serious injury shall be understood to mean serious injury that is clearly imminent.
A determination of the existence of a threat of serious injury shall be based on facts and not merely on
allegation, conjecture or remote possibilities.
Article 12. In determining the existence of injury or threat of serious injury, the Commission
shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the
situation of the domestic industry, in particular, the rate and amount of the increase in imports of the
product concerned in absolute terms or relative to domestic production, the prices of the imports, theshare of the domestic market taken by increased imports, changes in the level of sales, production,
prices, productivity, capacity utilization, profits and losses, and employment.
Article 13. The determination referred to above sha ll not be made unless the investigation
demonstrates, on the basis of objective evidence, the existence of a causal link between increasedimports of the product concerned, in absolute terms or relative to domestic production, and serious
injury or threat of serious injury.  When factors ot her than increased imports are causing injury to the
domestic industry at the same time, such injury shall not be attributed to increased imports.
Title 5.  Provisional Measures
Article 14. In critical circumstances where delay would cause damage which it would be difficult
to repair, the Commission may request the President of the Republic, through the Minister for
Finance, to apply provisional tariff surcharges within a period of 30 (thirty) days from the initiation of
the investigation.
The Commission's decision must be based on a preliminary determination of the existence of
clear evidence that the increase in imports has caused or threatens to cause serious injury.  The
resolution recommending the provisional application of the measure shall be transmitted to the
President of the Republic for his consideration, together with the relevant technical report, and the
President shall decide whether to impose the proposed measure and its amount, putting the application
into effect through a decree of the Ministry of Finance to be published in the Diario Oficial .
The determination shall be comm unicated to the Ministry of Foreign Affairs in a registered
letter so that it may make the relevant notifications.
Article 15. The tariff surcharges adopted shall enter into force upon publication in the Diario
Oficial  and remain in force until publication of the decision on the application or non-application of
definitive measures in the Diario Oficial .
The Commission may at any time request the President of the Republic, through the Minister
for Finance, that the provisional measures be modified or annulled.
Title 6.  Definitive Measures
Article 16. Within 90 (ninety) days from the initiation of the investigation, the Commission shall
take a decision regarding the facts investigated on the basis of the information available to it.G/SG/N/1/CHL/2
Page 12
Article 17. If, at the end of the investigation, the available information leads the Commission to
conclude that, as a result of the unforeseen developments in the situation and its obligations, including
the tariff concessions granted by Chile, imports of a product have increased in such volume and under
such conditions as to cause or threaten to cause serious injury to domestic producers of like or directlycompetitive products, it shall so state in the relevant Resolution recommending the application of the
tariff surcharges referred to in Article 9 of Law No. 18.525.
The Commission's Resolution, together with the background information and conclusions of
the investigation, shall be transmitted to the Pr esident of the Republic, through the Minister for
Finance, who shall also inform the Commission of the final decision of the President of the Republic
to be given in a Decree of the Ministry of Finance.
Article 18. Where, in the opinion of the Commission, the background information does not
permit the establishment of a safeguard measure, it shall take the relevant resolution ending the
investigation and shall transmit the decision to the Minister for Finance so that a summary may be
published in the Diario Oficial .
Article 19 . The Acts containing the Commission's recommendation on the application or non-
application of a safeguard measure shall be brought to the attention of the interested parties when the
Decree or summary, whichever is appropriate, is published in the Diario Oficial .
The recommendation shall contain references and information summarizing the following
aspects inter alia :
(a) The product under investigation and its corresponding tariff clarification;
(b) the identity of the applicant(s);
(c) the identity of the producers, exporters or importers of the product who have taken
part in the investigation;
(d) the facts concerning the existence of an increase in imports in such volume, in
absolute terms or relative to domestic production, under circumstances that cause orthreaten to cause serious injury to domestic industry producing like or directly
competitive products;
(e) considerations concerning the determination of injury;
(f) considerations concerning the determination of a causal link between the increase in
imports and the injury or threat of injury to the domestic industry.
Title 7.  Duration of the Measures
Article 20 . The Commission may at any time when it has the relevant information recommend to
the President of the Republic, through the Minister for Finance, that the application of the tariff
surcharges in effect should be modified or abolished before the date of their expiry.
Before making the aforementioned recommendation, the Commission shall hear the interested
parties concerning the information which, in their view, make it necessary to modify or abolish the
measure adopted.  The interested parties shall be given a hearing 10 (ten) working days after the
relevant communication has been sent by the Commission, whether or not comments have been made
on the information brought to their attention.G/SG/N/1/CHL/2
Page 13
Article 21 . The duration of tariff surcharges shall not exceed one year from the date of
publication of the Decree by the Ministry of Finance establishing them.  Where provisional measures
are applied, the period of one year shall be calculated from the date of publication of the Decree
imposing them.
The measures may be extended once for a further period not exceeding one year, at the
request of the applicant, which must be made at least 30 (thirty) days before the expiry of the original
period provided that the circumstances that led to their application persist and subject to a favourable
report by the Commission.
Title 8.  Notification, Consultation and Compensation
Article 22 . The Ministry of Foreign Affairs shall be responsible for making the relevant
notifications and holding the consultations with Governments involved.
In the situation referred to above, the Commission shall inform the Ministry of Foreign
Affairs so that it may take the necessary steps.
The notifications shall under no circumstances reveal confidential information whose
disclosure might constitute an obstacle for the implementation of laws or in any other way be contrary
to the public interest or injure the legitimate commercial interests of public or private companies.
Article 23 . Where, as a result of the consultations, the Ministry of Foreign Affairs recommends
the granting of compensation, it shall inform the President of the Republic through the Ministry of
Finance, of the outcome of the consultations, the compensation agreed and its amount where
applicable.
In such cases, the President of the Republic, in  issuing the Supreme Decree of the Ministry of
Finance establishing the safeguard measure or in a new Decree if the former Decree has already been
issued, shall specify the duration of the measure, the reduction in tariffs or the acceleration of the
tariff reduction process under the corresponding agreement.
Article 24. The President of the Republic, through a Supreme Decree of the Ministry of Finance,
may increase the tariffs applicable to goods from the other country when no agreement has beenreached on adequate compensation through application of a safeguard measure, by the other country,
to Chilean goods.
The Ministry of Foreign Affairs shall report on the outcome of the consultations and shall
recommend the application of such measures to the President of the Republic through the Ministry ofFinance.
Title 9.  Refund and Payment of Duties
Article 25. Persons affected by provisional measures during investigations on the application of
safeguard measures may request the refund of the total amount paid if it is finally decided not to apply
tariff surcharges.
Likewise, persons affected by provisional measures may request the partial refund of the
amount paid when the competent authority finally d ecides to apply measures of an amount lower than
that paid while the provisional measures were in force.
Current interest shall be paid on the sums refunded.  The right to request a refund shall be
exercised within 90 (ninety) days from the date on which the refund became payable otherwise the
refund shall be forfeited.G/SG/N/1/CHL/2
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Article 26. The payment of duties, taxes and other levies payable as provisional tariff surcharges
shall be made by payment of a percentage of the applicable amount in the relevant customs
declaration and the calculations shall be made by applying the percentage of the tariff surcharge to the
customs value of the corresponding item.
Article 27. Where duties, taxes and other levies payable as provisional tariff surcharges are to be
refunded, the importer claiming the refund shall submit an application in writing to the Regional
Director or Administrator of Customs wher e the relevant declaration was processed.
To be recorded, registered and published.  EDUARDO FREI RUIZ-TAGLE, President of the
Republic.  EDUARDO ANINAT URETA, Minister for Finance.
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