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The World of Foreign Trade

SHIPMENT CONDITIONS

REQUIREMENTS TO IMPORT TO CHILE

It is important to consider that all types of cargo must comply with:

  • The regulations in force in each country according to international treaties.
  • The required certification for each type of merchandise that is not considered as general cargo.
  • All the documentation required by the local customs, for the due internment and customs management of the merchandise, considering:  Proforma Invoice – Commercial Invoice – Packing List – Certificate of Origin – Sanitary and Phytosanitary Certificate according to the type of products, BL or Bill of Lading and Insurance Policy.

REQUIREMENTS TO EXPORT FROM CHILE

All merchandise leaving the country must consider:

  • That it will be inspected and approved by a customs office, which makes an export declaration.
  • All merchandise to be exported over USD 1000, the exporter must present a DUS (Unique Document of Exit) or a shipping order.
  • To have the documentation required by the local customs, for the due exit of the merchandise, considering:
  • Proforma Invoice – Commercial Invoice – Packing List – Certificate of Origin – Sanitary and Phytosanitary Certificate according to the type of products, BL or Bill of Lading and Insurance Policy.
  • And any type of documentation that proves that the merchandise complies with the regulations of the country of destination.

MAIN INCOTERMS

FOB – Free on Board. It is the most used condition since the seller delivers the goods directly to the warehouse assigned to the port of departure of the cargo, from there the expense is of the buyer or his intermediary (ffww). This condition allows control over expenses.

EXW – Ex works. It means that the supplier delivers the goods in its own facilities, coordinating the collection by the buyer and/or its intermediary (ffww), where the costs of origin and insurance are assumed. This condition also allows to have control over the expenses.

CIF – Cost + Insurance + Freight. It means that the seller delivers the goods on board, contracting and paying the associated costs, customs formalities to the port of destination and freight. In this condition there is no total control of the costs to be paid at destination.

FCA – Free Carrier. In this condition the seller delivers the goods at any place agreed between the parties, providing greater flexibility in terms of transportation, where the costs of origin are passed on to the buyer. 

C.F.R. (cost and freight). Means that the seller assumes all costs of transporting the goods to the named place of destination, but loss or damage to the goods or any increased costs are passed on to the buyer from the time the goods pass the ship’s rail at the port of shipment.

THC – Terminal Handling Charge. In practice, this is the charge for the service related to the movement of the cargo or container on the ship to the place where it will be stored until customs clearance actually begins. Since this is a service performed at the port of destination, the importer is responsible for the cost.

 

TYPES OF SHIPMENT

Shipments are classified according to the type of cargo, condition and means of transportation and, depending on the volume of the cargo, the type of freight.

  • In the case of FCL (Full Container Load), the entire container is at the disposal of the importer or exporter for the use of space he deems convenient.
  • In the case of LCL (Less Container Load) or ocean groupage, it is a type of shipment in which the cargo travels inside a container together with the cargoes of other shippers ‘shared container’.

TYPES OF CONTAINERS

It is important to be clear about the type and condition of shipment when requesting a service, where you can consolidate if you have loads from different suppliers or if it must be in one container.

  • Dry from 20″- 40″ ST/HQ and 40″ NOR for general or dry cargo.
  • Open Top 20″ and 40″ for heavy and oversized loads (no roof)
  • 20″ and 40″ Flat Rack for heavy and oversized cargo (no sides)
  • 40″ Reefer for refrigerated or frozen cargo such as fruits, dairy products, meats, etc.
  • Break Bulk is the space that the warehouses allocate for oversized loose cargo such as construction equipment, pipes, motors, etc.
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