RESTRICTED
WORLD TRADE S/NGMTS/W/2/Add.13
22February 1995
ORGANIZATION(95-0365)
Original: Spanish Negotiating Group onMaritime Transport Services
COMMUNICATION FROM CHILE
Response toQuestionnaire onMaritime Transport Services
Thefollowing communication iscirculated attherequest ofChile toMembers oftheNegotiating
Group onMaritime Transport Services.
_________________
With reference tothequestionnaire onmaritime transport services prepared asagreed atthe
second meeting oftheNegotiating Group onMaritime Transport Services on13July1994, Chile,
onthebasis ofexchanging information, hereby replies tothequestionnaire inthegiven order.
I. Market structure
Vessels
1. Thestructure ofthenational merchant fleetisasfollows:
STRUCTURE OFNATIONALLY-OWNED OROPERATED FLEET
Types ofvessels Number ofvessels Deadweight tonnage
National flag Foreign flag National flag Foreign flag
Oiltankers 11 2 442,000 222,000
Liquified gascarriers 4 62,003
Chemical tankers
Combination carriers 16 289,992
Ore/Bulk carriers
General cargo
Container ships 10 147,032
Refrigerated carriers 4 48,088
Specialized cargo 3 23,368
Ro-ro 4 8,075
Ferries andpassengers
Allvessels 35 19 802,000 440,488
1. Dataasat31December 1994
2. Source:DirecciónGeneraldelTerritorioMaritimoydeMarinaMercante(Directemar).S/NGMTS/W/2/Add.13
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Trade -DataasatDecember 1993
2. International trade carried byseacorresponds involume toabout 95percent, i.e.
35,284,453 metric tonnes (M.T.).
3. Theestimated shares oftotalinternational trade carried byseaisasfollows:
94percentexports byf.o.b. value - 7,644,329 (thousands ofdollars)
95percentexports byvolume - 21,770,941 M.T.
94percentimports byf.o.b. value - 6,990,204 (thousands ofdollars)
93percentimports byvolume - 13,513,512 M.T.
4. Theestimated share oftotalinternational trade carried byseainterms ofcargo andvolume
bynational-flag vessels isasfollows:
50percentgeneral cargo orlinershipping
30percentbulkcargo
22percentrefrigerated cargo
There isnoinformation oncarriage bycross-trading vessels.
5. Coastal shipping bynational-flag vessels makes up8percentofthetotalofhome trading.
There isnodataforcross-trading carried bynational-flag vessels.
Organization ofcargo
6. Thef.o.b. value (inthousands ofdollars) oftonnage carried byseapertypeofcargo isas
follows:
US$'000
General cargo (liner shipping) 10,884,747
Drybulkshipping 1,580,349
Liquid bulkshipping 1,020,862
7and8.
Anestimated volume of70percentofexternal trade iscarried byshipping lineswhich are
members ofconferences andconsortia. TheUnited Nations Code ofConduct forLiner Conferences
isnotapplied toshipping toandfrom Chile.
9. Theestimatedshare,intermsofquantityand/orvalue,ofcargocarriedbytradesunderabilateral
agreement (Chile-Brazil traffic) isasfollows:S/NGMTS/W/2/Add.13
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3.5percentvolume =1,800,713 M.T.
3.9percentfreight value =US$67,405,324.
10and11.
Approximately 90percentoflinercargo iscontainerized andaround 80percentiscarried
bymeans ofmultimodal transport arrangements.
Ports andauxiliary services
12. Thetotalnational porttraffic forinternational tradecargoes isapproximately 35,284,453 M.T.
andthemajor national ports thatparticipate inthisthrough putare:
SanVicente-Talcahuano 11,000,000 M.T.
Valparaíso 4,200,000 M.T.
Guayacán 3,400,000 M.T.
SanAntonio 3,000,000 M.T.
Antofagasta 2,500,000 M.T.
Lirquén 2,100,000 M.T.
.
Patillo 1,100,000 M.T.
Puerto Montt 1,000,000 M.T.
Coloso 1,000,000 M.T.
Iquique 950,000 M.T.
Source: (Directemar).
13and14.
Foreign suppliers arepresent inthemarket inthefollowing auxiliary services:
Container Station andDepot Services 20%
Maritime Agency Services 20%
Maritime Freight Forwarding Services Nodataavailable
Maritime Cargo Handling Services 15%
Storage andWarehousing Services 0%
Customs Clearance Services 0%
Maintenance andRepair ofVessels 0%S/NGMTS/W/2/Add.13
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Wholly-owned foreign suppliers operating intheinland movement (bytruck, railorwater of
international waterborne trade cargoes) arenotpresent inthemarket.
II. Regulatory structure
General
1,2and3.
Theinstitutional structure oftheinternational maritime transport sector consists oftheMinistry
ofTransport andTelecommunications, theMaritime Trade Commission, created byExecutive Order
3.059 of1979onMaritime Trade Promotion, andtheDirectorate-General fortheMaritime Territory
andtheMerchant Navy.
TheMinistry isthebody responsible forinspecting andsupervising everything related tothe
commercial aspects ofmaritime transport, aswellasforrules applicable withthesector.
TheCommission, which ischaired bytheMinister ofTransport, isresponsible forapplying
theprinciple ofreciprocity inmaritime transport, bymeans ofcargo reservation inbilateral traffic
orexclusion offoreign vessels incross-trading whenever acountry imposes restrictions onChilean
ships carrying itscargoes.
TheDirectorate-GeneralfortheMaritimeTerritoryandtheMerchantNavyisthebodyincharge
ofinspecting andsupervising thetechnical aspects ofshipping, especially withregards tonavigation
security andsafety oflifeatsea.Itestablishes norms andassigns portpilotservices, pilotage, shipping
agents, theuseoftugboats, etc.
Theonlyoverall regulatory approach forshipping isbased ontheprinciple ofreciprocity.
There arenogeneral provisions applicable tobulk(dryandliquid) shipping.
Withrespect tolinershipping, while being subject togeneral rules, theMinistry ofTransport
andtheCommission havetoensure thatnoChilean shipping company isdenied access toanyregular
shipping linesthatmaybeestablished, which areunderstood aslinesthatmeetamarket demand and
offer regular, efficient andsafeexternal orcoastal shipping.
4. Multimodal transport operators, general andbulkshipping linesandshippers ingeneral have
reasonable andnon-discriminatory access torentorleasetrucks, railway carriages, orbarges andrelated
equipment forthepurpose ofinland forwarding ofcargoes.
5. There areState-owned andprivate ports forpublic use.
State-owned ports areadministered bytheChilean Ports Company, anindependent company
whose relations with theGovernment aremaintained through theMinistry ofTransport and
Telecommunications. ThePorts Company istheportauthority intheports itadministers. Auxiliary
services (cargo transfer, carriage, loading andunloading) maybecontracted freely innational ports.
ThePorts Company doesnotprovide theabove services.
ThePorts Company mayleaseorgrant concessions fortheuseofportproperty upto30years,
subject toprior authorization from thePresident oftheRepublic.S/NGMTS/W/2/Add.13
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Private portsareadministered andoperated bytheirowners, inaccordance withtheconditions
theyhaveestablished ineachcase. They alsoestablish theconditions fortheprovision ofauxiliary
services. Theprocedures andconditions fortheallocation ofscarce resources arefixedandadministered
bythecompany concerned, whether public orprivate.
6. International maritime transport isthecarriage ofgoods byseatoandfromChile evenwhen
thecargo doesnotfallwithin Chilean external trade.
7. AChilean shipowner orshipping enterprise isanynatural orlegal person whofulfils the
requirements needed toregister avessel inChile inaccordance withArticle 11oftheShipping Act
(E.O. 2.222/78), isengaged inshipping andistheowner orlessee ofaregistered trading shiporships
flying theChilean flag.
Inaccordance withArticle 11oftheShipping Act,avessel mayberegistered inChile only
ifitsowner isChilean (natural orlegalperson).
Iftheowner ofavessel isacompany (legal person), itisconsidered Chilean ifitsdomicile
andactual principal place ofbusiness isinChile, ifthepresident, manager andmostofthedirectors
oradministrators areChilean andifmostoftheequity belongs to(natural orlegalpersons) Chileans.
Ifavessel isjointly owned, itisconsidered Chilean ifmost oftheco-owners areChilean,
domiciled inandresidents ofChile andifitsadministrators areChilean andthemajority oftheco-
ownership rights belong toChileans (natural orlegalpersons).
Therefore, therequirements are:
-nationality;
-domicile;
-majority oftheequity ofthecompany.
Market access
8.(a,b,c) There arenolimits tothenumber ofmaritime transport service suppliers ortothetotal
valueofmaritimetransportservicetransactionsoroperationsortothetotalquantityofmaritimetransport
service output. There arenoinstitutional arrangements forcargo allocation.
(d)i,ii Atleast85percentoftheemployees working forthesame employer mustbeChilean, except
inthecaseofemployers withlessthan25employees.
9. There arenomeasures which restrict orrequire specific types oflegalentity orjointventure
towhich amaritime transport service supplier maysupply services indicated in(a)and(b).
10. Theparticipation offoreign capital inshare-holding orinthetotalvalue ofindividual investment
intheownership ofChilean shipping enterprises orcompanies, inconformity withtheprovisions in
theMerchant Navy Act,must bebelow 50percent. Inthiscaseships mayberegistered inChile.
Ifparticipation isabove theabove-mentioned limittheenterprise orcompany willbeashipping
company inaccordance withgeneral company law,since itwascreated andhasitsdomicile inChile,
butitcannot register vessels inChile orhaveaccess tocarriage ofgoods inbilateral traffic where theS/NGMTS/W/2/Add.13
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principle ofreciprocity applies cargo reservation fornational vessels, orengage incoastal shipping,
orapply forsubsidies incoastal traffic, etc.
11. Inorder toflythenational flag:
(a) Itisnecessary tobeaChilean natural orlegalperson
(b) Thedomicile andprincipal place ofbusiness must beinChile
(c) Chileans (natural orlegalpersons) mustadminister andownthemajority oftheequity
ofthecompany
(d) Vessels mustberegistered inChile (seeAnswer toNo.7under Regulatory Structure).
National treatment
12.(a,b) There isa5percenttaxonocean freight, oncommissions orshares onocean freight to
andfrom Chilean ports, andonother receipts forservices rendered tovessels andcargo innational
orforeign ports which arenecessary inorder toprovide thetransport services, payable bypersons
notdomiciled orresiding inthecountry.
Thetaxisalsolevied onforeign shipping enterprises which havepermanent establishments
inChile, butthese maydeduct itfromthetaxes theyhavetopayinaccordance withtheRevenue Act.
Thistaxisnotlevied onincome generated byforeign vessels ifinthecountry where these
vessels areregistered there isnosimilar taxorifequal orparallel exemptions aregranted toChilean
shipping enterprises (reciprocity).
Theapplication ofreciprocity hasmade thistaxobsolete, since theMinistry ofFinance has
issued many resolutions based ontheprinciple ofreciprocity withalmost allcountries.
There isnoindirect preferential treatment granted exclusively tonational shipping enterprises.
Access toanduseofportfacilities
13. Pilotage, towing andtugassistance, provisioning, fuelling andwatering, garbage collecting
andballast waste disposal andnavigation aidsareoffered totheusers onanon-discriminatory basis.
14. Pilotageandtowingaremandatoryforportoperations(berthing,anchoring,casting-off).Pilotage
ismandatory forcanal shipping.
15. Alloftheservices enumerated inNo.13,ashasbeen mentioned, areoffered onanon-
discriminatory basis.
16,17,18.
Therearenomeasureswhichdiscriminateagainstforeignvessels,withrespecttonationalvessels,
asregards access toanduseofnational ports, norisitcompulsory tousespecific terminal facilities.
19. There arenomeasures imposed bynon-government entities.S/NGMTS/W/2/Add.13
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Most-favoured-nation treatment
20,21.
There isabilateral shipping agreement withBrazil under which commercial cargoes inmaritime
trade between thetwocountries must becarried byChilean orBrazilian vessels registered inthe
respective countries. Under thisagreement, thetwocountries 'shares areequally (50percent-
50percent) andregulated byafreight pool.
22. TheCode ofConduct forLiner Conferences isnotapplicable. Therefore, cargo sharing as
stipulated inthesaidCode isnotpermitted, since itisincompatible withthefreedom ofmaritime
transport prevailing inChile.
23,24.
There arenomeasures which grantpreferential treatment inthesupply ofinternational transport
andauxiliary services oraccess toanduseofportandharbour facilities.
25. Iffaced withrestrictions imposed bycountries forthebenefit oftheirships orshipowners,
suchascargo reservation ingeneral orreservation ofaspecific cargo, exclusive useofonewayor
two-way traffic, etc.,theGovernment authorities canapply theprinciple ofreciprocity asacounter-
measure intheshipping sector, sothatvessels owned, hired oroperated byshipowners flying theflag
ofthecountry orcountries applying therestrictions willbesubjected tosimilar restrictions foraslong
asthenational vessels areprevented from participating inshipping cargo orintraffic asaresult of
theprevailing restrictions.
26. There arenomeasures enabling theGovernment toimpose selective restrictions onthesupply
ofmaritime transport andrelated services.
Government procurement
27,28.
There arenomeasures relating toaccess tonon-commercial cargoes ortheprocurement of
maritime transport orauxiliary services.
Competition law
29. TheChileanMarineNavyAct,inconformitywiththecustomandusageofinternationalmaritime
transport, states thatshipping enterprises mayparticipate infreight conferences, ports andconsortia
which regulate andstreamline services, since theyarenotsubject inthisparticular tothestandards
laiddown intheanti-trust laws.
TheAnti-Trust Commission hasdetermined thatonlymembership ofconferences, agreements
orconsortia isnotaffected bytheAnti-Trust Law; shipping enterprises which seektoestablish a
monopoly inthemaritime transport sector willbesanctioned bytheAnti-Trust Law.
Shipping conferences
30. There arenomeasures which render theadmission ofnewmembers toaparticular conference
subject totheapproval ofexisting members. Therefore, amember isquite freetowithdraw from a
particular conference.S/NGMTS/W/2/Add.13
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31. Conference agreements arerequired tobefiledtotheMinistry ofTransport. TheMinistry
cannot oppose anagreement; withrespect toanyexemption toanti-trust lawsprovided forinsuch
agreements, itmust notify theNational Anti-Trust Commission.
32. Thetariffs applied bytheconferences arerequired tobefiledtotheMinistry ofTransport.
TheMinistry doesnothavethepower toensure orenforce compliance withtariffs which havebeen
filed.
33. Conferences arenotrequired toallow independent rateaction. ("IRA").
34. There arenoinstitutional arrangements orspecific measures dealing witha,borc.
Shipper/carrier relations
35. Book IIIoftheTrade Code: "OnShipping andMaritime Trade", contains theprovisions which
regulate shipper/carrier relations.
36. There arenospecial requirements withregard tofreight ratenegotiations orconsultations on
matters ofcommon interest. Market forces apply.