(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure;
(f) Description sets out the non-conforming aspects of the existing measures for which the reservation is taken; and
(g) Phase-out sets out commitments, if any, for liberalization after the date of entry into force of this Agreement.
3, In the interpretation of a reservation, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of the Chapters against which the reservation is taken. To the extent that:
(a) the Phase-out element provides for the phasing out of non-conforming aspects of measures, the Phase-out element shall prevail over all other elements; and
(b) the Measures element shall prevail over all other elements, unless any discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that discrepancy.
4. Where a Party maintains a measure that requires that a service provider be a citizen, permanent resident or resident of its territory as a condition to the provision of a service in its territory, a reservation for that measure taken with respect to Article 11.3 or 11.4 shall operate as a reservation with respect to Article 10.3 or 10.7 to the extent of that measure.
5. The listing of a measure in this Annex is without prejudice to a future claim that Annex II may apply to the measure or some application of the measure.
6. For purposes of this Annex, CPC means Central Product Classification (CPC) numbers as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991.
Annex I. Schedule of Chile
Sector: All Sectors
Sub-sector:
Industry Classification:
Type of Reservation: National Treatment (Article 10.3)
Measures: Decreto Ley 1939, Diario Oficial, noviembre 10, 1977, Normas sobre adquisición, administración y disposición de bienes del Estado, Título I
Decreto con Fuerza de Ley 4 del Ministerio de Relaciones Exteriores, Diario Oficial, noviembre 10, 1967
Description: Investment
Chile when disposing of the ownership or any other right over State land may only do so to Chilean natural or juridical persons, except for the applicable legal exceptions.
State land for these purposes refers to State land up to a distance of 10 kilometers from the border front and up to a distance of 5 kilometers from the oceanfront.
For greater transparency, corporeal immovable property situated in borderland and declared “borderland zone” by virtue of Decreto con Fuerza de Ley 4, 1967, by the Ministerio de Relaciones Exteriores may not be acquired, either as property or in another quality by natural persons with nationality in a neighboring country or juridical persons with its principal seat in a neighboring country or with 40 per cent or more of its capital belonging to such natural persons or its effective control is exercised by such natural persons. Notwithstanding the foregoing, said limitation may not apply if exemption is granted by a supreme decree of the President of the Republic based on considerations of national interest.
Phase-out: None
Sector: All Sectors
Sub-sector:
Industry Classification:
Type of Reservation: National Treatment (Article 11.3) Local Presence (Article 11.4)
Measures: Decreto con Fuerza de Ley 1 del Ministerio del Trabajo y Previsión Social, Diario Oficial, enero 24, 1994, Código del Trabajo, Título Preliminar, Libro I, Capítulo III
Decreto con Fuerza de Ley 2 del Ministerio del Trabajo y Previsión Social, Diario Oficial 29 de octubre 1967, artículo 5, letra c)
Código Civil, artículo 16, inciso 3º
Description: Cross-Border Trade in Services
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 who cannot be replaced by national personnel shall not be subject to this provision, as determined by the Dirección General del Trabajo.
An employee shall be understood to mean any natural person who renders intellectual or material services, under dependency or subordination, pursuant to a contract of employment.
The person acting as employer shall constitute a representative or mandatary in the country, with residence and domicile within the territory, with enough empowerment and authority to respond for the obligations imposed by the labor and social security law to such contract, as well as for the sanctions that might be applied.
The said mandatary shall be responsible for keeping and maintaining all labor and social security documentation related to an employee, in order to allow for legal supervision, as well as to withhold, declare or pay the social security obligations of the said worker.
Phase-out: None
Sector: Automotive
Sub-sector:
Industry Classification:
Type of Reservation: Performance Requirements (Article 10.7)
Measures: Law No. 18,483, Official Gazette of December 28, 1985, Régimen Legal para la Industria Automotriz
Description: Investment
In order to qualify for the benefits established in Ley 18.483, it is required to be registered in the Registros de la Comisión Automotriz and comply with the minimum national content.
Phase-out: None
Sector: Business Services
Sub-sector: Research in Social Sciences
Industry Classification: CPC 86751 Related Services Provided by Science and Technology Consultants
Type of reservation: National Treatment (Article 11.3)
Measures: Ley 17.288, Diario Oficial, febrero 4, 1970, Título V Decreto Supremo 484 del Ministerio de Educación, Diario Oficial, abril 2, 1991
Description: Cross-Border Trade in Services
Foreign juridical or foreign natural persons intending to perform excavations, surveys, probings and/or collect anthropological, archeological or paleontological material must apply for a permit from the 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 state-owned scientific institution or a Chilean university.
The aforementioned permit can be granted to Chilean researchers having the pertinent scientific background in archeology, anthropology or paleontology, duly certified as appropriate, and who also have a research project and due institutional sponsorship; and to foreign researchers, provided that they are engaged by a reliable scientific institution and that they work in collaboration with a Chilean state-owned scientific institution or a Chilean university. Museum directors or curators acknowledged by the Consejo de Monumentos Nacionales, professional archeologists, anthropologists or paleontologists, as appropriate, and the members of the Sociedad Chilena de Arqueología shall be authorized to perform salvage-related works. Salvage involves the urgent recovery of data or archeological, anthropological or paleontological artifacts or species threatened by imminent loss.
Phase-out: None
Sector: Business Services
Sub-sector: Research Services
Industry Classification: CPC 851 Research and Experimental Development Services in Natural Sciences and Engineering CPC 853 Interdisciplinary Research and Experimental Development Services CPC 8675 Related Scientific and Technical Consulting Services
Type of Reservation: National Treatment (Article 11.3)
Measures: Decreto con Fuerza de Ley 11 del Ministerio de Relaciones Exteriores, Diario Oficial, diciembre 5, 1968
Decreto 559 del Ministerio de Relaciones Exteriores, Diario Oficial, enero 24, 1968
Decreto con Fuerza de Ley 83 del Ministerio de Relaciones Exteriores, Diario Oficial, marzo 27, 1979
Description: Cross-Border Trade in Services
Natural persons representing foreign juridical persons or natural persons residing abroad and intending to perform explorations for work of a scientific or technical nature, or connected to mountain climbing in areas that are adjacent to Chilean borders shall apply for the appropriate authorization through a Chilean Consul in the corresponding country. The Chilean Consul shall then send such request directly to the Dirección de Fronteras y Límites del Estado. The Dirección shall determine whether one or more Chilean natural persons working in the appropriate related activities shall join the expedition in order to become acquainted with the studies to be undertaken.
The Departamento de Operaciones de la Dirección de Fronteras y Límites del Estado shall pronounce itself on whether to authorize or reject geographic or scientific explorations to be carried out by foreign juridical or natural persons in Chile. The Dirección de Fronteras y Límites del Estado shall authorize and will supervise all explorations involving work of a scientific or technical nature, or related to mountain climbing, that foreign juridical persons or natural persons residing abroad intend to carry out in areas adjacent to Chilean borders.
Phase-out: None
Sector: Business Services
Sub-sector: Research Services
Industry Classification: CPC 851 Research and Experimental Development Services in Natural Sciences and Engineering CPC 853 Interdisciplinary Research and Experimental Development Services CPC 882 Services Incidental to Fisheries
Type of Reservation: National Treatment (Article 11.3)
Measures: Decreto Supremo 711 del Ministerio de Defensa, Diario Oficial, octubre 15, 1975
Description: Cross-Border Trade in Services
Foreign natural and juridical persons intending to conduct research in the Chilean 200-mile maritime zone, shall be required to submit a request six months in advance to the Instituto Hidrográfico de la Armada de Chile, and shall comply with the requirements established in the corresponding regulations.
Phase-out: None
Sector: Communications
Sub-sector: Basic National or International Long-Distance Telecommunications Services and Intermediate Services; Supplementary Telecommunications Services; and Limited Telecommunications Services
Industry Classification:
Type of Reservation: National Treatment (Article 10.3)
Measures: Law No. 18,168, Official Gazette of October 2, 1982, General Telecommunications Law, Titles I, II and III.
Description: Investment
A concession granted by means of a Supreme Decree issued by the Ministry of Transportation and Telecommunications shall be required for the installation, operation and exploitation of public and intermediary telecommunications services in Chilean territory. Only juridical persons organized according to Chilean law shall be eligible for such concessions.
An official decision issued by the Under-Secretariat of Telecommunications shall be required to render Supplementary Telecommunications Services consisting of additional services provided by hooking up equipment to public networks. Said decision refers to compliance with the technical standards established by the Under-Secretariat of Telecommunications and non-alteration of the essential technical features of networks or of the permissible technological or the basic service modalities provided through them.
A permit issued by the Subsecretaría de Telecomunicaciones shall be required for the installation, operation and development of limited telecommunications services.
International traffic shall be routed through the installations of a company holding a concession granted by the Ministry of Transportation and Telecommunications.
Phase-out: None
Sector: Communications
Sub-sector:
Industry Classification:
Type of Reservation: National Treatment (Articles 10.3, 11.3) Local Presence (Article 11.4) Senior Management and Boards of Directors (Article 10.8) Performance Requirements (Article 10.7)
Measures: Law 18,838, published in the Official Gazette on September 30, 1989, National Television Council, Titles I, II and III
Law 18,168, published in the Official Gazette on October 2, 1982, General Telecommunications Law, Titles I, II and III
Law 19,733, published in the Official Gazette on June 4, 2001, on Freedom of Speech and Freedom of Information, and the Practice of Journalism, Titles I and III
Description: Cross-Border Trade in Services and Investment
The owner of a social communication medium such as sound and image transmissions or a national news agency, shall in the case of a natural person have a duly established domicile in Chile and in the case of a juridical persons shall be constituted with domicile in Chile or have an agency authorized to operate within the national territory. Only Chilean nationals may be President, administrators or legal representatives of the juridical person. In the case of public radio broadcasting services, the board of Directors may be integrated by foreigners only if they do not represent the majority. The legally responsible Director and the person who subrogates him/her must be Chilean with domicile and residence in Chile.
Requests for public radio broadcasting concessions submitted by juridical persons in which foreigners hold an interest exceeding ten percent of the capital, shall be granted only if proof is previously provided verifying that similar rights and obligations as those that the applicants will enjoy in Chile are granted to Chilean nationals in their country of origin.
The National Television Council may establish, as a general requirement, that programs broadcast through public (open) television channels include up to 40 per cent of Chilean production.
Only juridical persons duly constituted in Chile and having domicile in the country may be the titleholders or make use of permits for limited radio broadcasting telecommunications services. Only Chilean nationals may be president, managers or legal representatives of that juridical person.
Only juridical persons duly constituted in Chile and having domicile in the country may be the titleholders or make use of permits for limited cable television or microwave television services. Only Chilean nationals may be president, directors, managers, administrators and legal representatives of the juridical person.
Phase-out: None
Sector: Energy
Sub-sector:
Industry Classification: CPC 12 Crude Petroleum and Natural Gas CPC 13 Uranium and Thorium Minerals CPC 14 Metallic Minerals CPC 16 Other Minerals
Type of Reservation: National Treatment (Article 10.3) Performance Requirements (Article 10.7)
Measures: Political Constitution of the Republic of Chile, Chapter III
Law No. 18,097, Official Gazette of January 21, 1982, Constitutional Organic Law on Mining Concessions, Titles I, II and III.
Law No. 18,248, Official Gazette of October 14, 1983, Mining Code, Titles I and II.
Law No. 16,319, Official Gazette of October 23, 1965, creates the Chilean Nuclear Energy Commission, Titles I, II and III.
Description: Investment
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 beneficio shall not include the storage, transportation or refining of the energy material referred to in this paragraph.
The production of nuclear energy for peaceful purposes may only be carried out by the Comisión Chilena de Energía Nuclear or, with its authorization, jointly with third persons. Should the Comisión deem it advisable to authorize, it may determine, in turn, the terms and conditions therein.
Phase-out: None
Sector: Fisheries
Sub-sector: Aquaculture
Industry Classification: CPC 04 Fish and Other Fishing Products
Type of Reservation: National Treatment (Article 10.3)
Measures: Law No. 18,892, Official Gazette of January 21, 1992, General Fisheries and Aquaculture Law, Titles I and VI.
Description: Investment
A concession or permit is required for the use of beaches, land adjacent to beaches (terrenos de playas), water-column (porciones de agua) and sea-bed lots (fondos marinos) to engage in aquaculture activities.
Only Chilean natural or juridical persons constituted in accordance with Chilean law and foreigners with permanent residency may be holders of an authorization or concession to carry out aquaculture activities.
Phase-out: None
Sector: Fisheries
Sub-sector:
Industry Classification: CPC 04 Fish and Other Fishing Products
Type of Reservation: National Treatment (Articles 10.3) Local Presence (Article 11.4) Senior Management and Boards of Directors (Article 10.8)
Measures: Ley 18.892, Diario Oficial, enero 21, 1992, Ley General de Pesca y Acuicultura, Títulos I, III, IV y IX
Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I y II
Description: Cross-Border Trade in Services and Investment
In order to harvest and to catch hydrobiological species in interior waters, in the territorial sea and Exclusive Economic Zone of Chile, a permit issued by the Subsecretaría de Pesca is required.
Only Chilean natural persons or juridical persons constituted in accordance with Chilean law and foreigners with permanent residency may be holders of permits to harvest and to catch hydrobiological species.
Only Chilean vessels are permitted to fish in interior waters, in the Terrritorial seas and Chile´s Exclusive Economic Zone.
Chilean vessels are those defined in the 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. A juridical person must be constituted in Chile with principal domicile and real and effective seat in Chile, with its president, manager and the majority of the directors or administrators being Chilean natural persons. In addition, more than 50 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 aforementioned requisites.
A joint ownership (comunidad) may register a vessel if the majority of the joint owners are Chilean with domicile and residency in Chile. The administrators must be Chilean natural persons and the majority of the rights of the joint ownership (comunidad) must 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 aforementioned requisites.
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 above mentioned. Fishing vessels specifically authorized by the maritime authorities, pursuant to powers conferred by law in cases of reciprocity granted to Chilean vessels by other States, may be exempted from the above-mentioned requisites on equivalent terms provided to Chilean vessels by that State.
Access to small-scale fishing activities (pesca artesanal) shall be subject to registration in the 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 persons constituted by the aforementioned persons.
Phase-out: None
Sector: Mining
Sub-sector:
Industry Classification: CPC 13 Uranium and Thorium Minerals CPC 14 Metallic Minerals CPC 16 Other Minerals
Type of Reservation: National Treatment (Article 10.3) Performance Requirement (Article 10.7)
Measures: Political Constitution of the Republic of Chile, Chapter III.
Constitutional Organic Law No. 18,097, Official Gazette of January 12, 1982, on Mining Concessions, Titles I, II and III
Law No. 18,248, Official Gazette of October 14, 1983, Mining Code, Titles I and III.