Australia-Chile Free Trade Agreement

Chapter 23 - Final Provisions

Article 23.1: Annexes and Footnotes

The Annexes and footnotes to this Agreement constitute an integral part of this Agreement.

Article 23.2: Accession

This Agreement is open to accession, on terms to be agreed between the Parties, by any country.

Article 23.3: Amendments

1. The Parties may agree, in writing, on any modification of or addition to this Agreement.

2. When so agreed, and approved in accordance with the necessary domestic legal procedures of each Party, a modification or addition shall constitute an integral part of this Agreement. Such amendment shall enter into force 45 days after the date on which the Parties exchange written notification that such procedures have been completed, or after such other period as the Parties may agree.

Article 23.4: Amendment of the WTO Agreement

If any provision of the WTO Agreement that the Parties have incorporated into this Agreement is amended, the Parties shall consult on whether to amend this Agreement.

Article 23.5: Entry into Force and Termination

1. The entry into force of this Agreement is subject to the completion of necessary domestic legal procedures by each Party.

2. This Agreement shall enter into force 45 days after the date on which the Parties exchange written notifications that such procedures have been completed, or after such other period as the Parties may agree.

3. Either Party may terminate this Agreement by written notification to the other Party. This Agreement shall expire 180 days after the date of such notification.

Article 23.6: Authentic Texts

The English and Spanish texts of this Agreement are equally authentic.

IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective governments, have signed this Agreement.

DONE at …, in duplicate, this XX day of XXXX, 2008.

FOR THE GOVERNMENT OF THE REPUBLIC OF CHILE: FOR THE GOVERNMENT OF AUSTRALIA:

Annex I

1. The Schedule of a Party to this Annex sets out, pursuant to Articles 9.7 (Non-Conforming Measures – Cross-Border Trade in Services Chapter) and 10.9 (Non-Conforming Measures – Investment Chapter), a Party’s existing measures that are not subject to some or all of the obligations imposed by:

(a) Article 9.3 (National Treatment – Cross-Border Trade in Services Chapter) or 10.3 (National Treatment – Investment Chapter);

(b) Article 9.4 (Most-Favoured-Nation Treatment – Cross-Border Trade in Services Chapter) or 10.4 (Most-Favoured-Nation Treatment – Investment Chapter);

(c) Article 9.5 (Market Access – Cross-Border Trade in Services Chapter);

(d) Article 9.6 (Local Presence – Cross-Border Trade in Services Chapter);

(e) Article 10.7 (Performance Requirements – Investment Chapter); or

(f) Article 10.8 (Senior Management and Boards of Directors – Investment Chapter).

2. Each Schedule entry sets out the following elements:

(a) Sector refers to the sector for which the entry is made;

(b) Obligations Concerned specifies the obligation(s) referred to in paragraph 1 that, pursuant to Articles 9.7.1(a) (Non-Conforming Measures – Cross-Border Trade in Services Chapter) and 10.9.1(a) (Non-Conforming Measures – Investment Chapter), do not apply to the listed measure(s);

(c) Level of Government indicates the level of government maintaining the listed measure(s);

(d) For Chile, Measures identifies the laws, regulations or other measures for which the entry is made. For Australia, Source of Measure means the laws, regulations or other measures that are the source of the non-conforming measure for which the entry is made. A measure cited in the Measures or Source of Measure element:

(i) means the measure as amended, continued or renewed as of the date of entry into force of this Agreement, and

(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure;

(e) Description, for Australia, sets out the non-conforming measure for which the entry is made; and Description, for Chile, provides a general, non-binding, description of the Measures.

3. In accordance with Article 9.7.1(a) (Non-Conforming Measures – Cross-Border Trade in Services Chapter) and 10.9.1(a) (Non-Conforming Measures – Investment Chapter) , the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply, in the case of Australia, to the non-conforming measure identified in the Description element of that entry or, in the case of Chile, to the law, regulation or other measure identified in the Measures element of that entry. Local Presence and National Treatment are separate disciplines and a measure that is only inconsistent with Local Presence (such as residency requirements) need not be reserved against National Treatment.

4. Where a Party maintains a measure that requires that a service supplier be a citizen, permanent resident or resident of its territory as a condition to the supply of a service in its territory, a Schedule entry for that measure taken with respect to Article 9.3 (National Treatment – Cross-Border Trade in Services Chapter), 9.4 (Most-Favoured-Nation Treatment – Cross-Border Trade in Services Chapter) or 9.6 (Local Presence – Cross-Border Trade in Services Chapter) shall operate as a Schedule entry with respect to Article 10.3 (National Treatment – Investment Chapter), 10.4 (Most-Favoured-Nation Treatment – Investment Chapter) or 10.7 (Performance Requirements – Investment Chapter) to the extent of that measure.

Annex I

Schedule of Australia

Sector: All Sectors
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Local Presence (Article 9.6)

Performance Requirements (Article 10.7)

Senior Management and Boards of Directors (Article 10.8)

Level of Government: Regional
Source of Measure: All existing non-conforming measures at the regional level of government.
Description: Cross-Border Trade in Services and Investment

All existing non-conforming measures at the regional level of government.

Note: this reservation will be replaced by individual listings of State and Territory non-conforming measures in due course, as agreed.

Sector: All Sectors
Obligations Concerned: National Treatment (Article 10.3)

Senior Management and Boards of Directors (Article 10.8)

Level of Government: Central
Source of Measure: Australia’s Foreign Investment Policy, which comprises the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA);

Foreign Acquisitions and Takeovers Regulations 1989 (Cth); Financial Sector (Shareholdings) Act 1998 (Cth); and Ministerial Statements.

Description: Investment

The following investment activities require notification and prior approval from the Australian Government:

  • proposed acquisitions by foreign persons23-[63] of substantial interests23-[64] in existing Australian businesses with total assets valued at more than $A100 million;
  • proposals by foreign persons to take over offshore companies whose Australian subsidiaries or gross assets account for 50 per cent or more of the target company’s global assets and are valued at more than $A100 million;
  • proposals by foreign persons to take over offshore companies whose Australian subsidiaries or gross assets account for less than 50 per cent of the target company’s global assets and are valued at more than $A200 million;
  • proposals by foreign persons to establish new businesses in Australia involving a total investment of $A10 million or more;
  • proposed direct investments by foreign governments or their agencies, irrespective of size;
  • proposed direct (non-portfolio) investments by foreign persons in the media sector, irrespective of size, and all portfolio investments of five per cent or more in existing businesses in the media sector;
  • proposed acquisitions by foreign persons of interests in urban land (including interests that arise via leases, financing and profit sharing arrangements and the acquisitions of interests in urban land corporations and trusts) that involve the:
    • proposed acquisition of developed non‑residential commercial real estate where the property is valued at $A5 million or more and is subject to heritage listing; or
    • proposed acquisition of developed non‑residential commercial real estate where the property is valued at $A50 million or more and is not subject to heritage listing; and
  • proposals where any doubt exists as to whether they are notifiable (funding arrangements that include debt instruments having quasi-equity characteristics will be treated as direct foreign investment).

Notified investments may be refused, subject to interim orders, and/or approved subject to compliance with certain conditions.

Separate or additional requirements may apply to measures subject to other Annex I non-conforming measures and to sectors, sub-sectors or activities subject to Annex II.


Sector: All sectors
Obligations Concerned: Senior Management and Boards of Directors (Article 10.8)
Level of Government: Central
Source of Measure: Corporations Act 2001 (Cth)

Corporations Regulations 2001 (Cth)

Description: Investment

At least one director of a private company must be ordinarily resident in Australia.

At least two directors of a public company must be ordinarily resident in Australia.

At least one secretary of a private company (if such a private company appoints one or more secretaries) must be ordinarily resident in Australia.

At least one secretary of a public company must be ordinarily resident in Australia.


Sector: Professional Services
Obligations Concerned: Local Presence (Article 9.6)
Level of Government: Central
Source of Measure: Patents Act 1990 (Cth)

Patent Regulations (Cth)

Description: Cross-Border Trade in Services

In order to register to practise in Australia, patent attorneys must be ordinarily resident in Australia23-[65].


Sector: Professional Services
Obligations Concerned: National Treatment (Article 9.3)

Most-Favoured-Nation Treatment (Article 9.4)

Level of Government: Central
Source of Measure: Migration Act 1958 (Cth)
Description: Cross-Border Trade in Services

To practise as a migration agent in Australia a person must be an Australian citizen or permanent resident or a citizen of New Zealand with a special category visa.


Sector: Professional Services
Obligations Concerned: Local Presence (Article 9.6)
Level of Government: Central
Source of Measure: Corporations Act 2001 (Cth)
Description: Cross-Border Trade in Services

A person who is not ordinarily resident in Australia may be refused registration as a company auditor. At least one partner in a firm providing auditing services must be a registered company auditor who is ordinarily resident in Australia.


Sector: Fishing and Pearling
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)
Level of Government: Central
Source of Measure: Fisheries Management Act 1991 (Cth)

Foreign Fishing Licences Levy Act 1991 (Cth)

Description: Cross-Border Trade in Services and Investment

Foreign fishing vessels23-[66] seeking to undertake fishing activity in the Australian Fishing Zone must be authorised.

Where foreign fishing vessels are authorised to undertake such fishing activity, they may be subject to a levy23-[67].


Sector: Professional Services
Obligations Concerned: National Treatment (Article 9.3)

Local Presence (Article 9.6)

Level of Government: Central
Source of Measure: Customs Act 1901 (Cth)
Description: Cross-Border Trade in Services

To act as a customs broker23-[68] in Australia, service suppliers must provide the service in and from Australia.


Sector: Telecommunications
Obligations Concerned: National Treatment (Article 10.3)

Senior Management and Boards of Directors (Article 10.8)

Level of Government: Central
Source of Measure: Telstra Corporation Act 1991 (Cth)
Description: Investment

Aggregate foreign equity is restricted to no more than 35 per cent of shares of Telstra. Individual or associated group foreign investment is restricted to no more than five per cent of shares.

The Chairperson and a majority of directors of Telstra must be Australian citizens and Telstra is required to maintain its head office, main base of operations and place of incorporation in Australia.


Sector: Health Services
Obligations Concerned: National Treatment (Article 10.3)

Senior Management and Boards of Directors (Article 10.8)

Level of Government: Central
Source of Measure: Commonwealth Serum Laboratories Act 1961 (Cth)
Description: Investment

The votes attached to significant foreign shareholdings23-[69] are prevented from being counted in respect to the appointment, replacement or removal of more than one third of CSL’s directors who hold office at a particular time. The head office and principal facilities used to produce products derived from human plasma collected from blood or plasma donated by individuals in Australia must remain in Australia. Two-thirds of the directors of the board of CSL and the chairperson of any meeting must be Australian citizens. CSL must not seek incorporation outside of Australia.


Sector: Transport Services
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Local Presence (Article 9.6)

Level of Government: Central
Source of Measure: Trade Practices Act 1974 (Cth)
Description: Cross-Border Trade in Services and Investment

Every ocean carrier who provides international liner cargo shipping services to or from Australia must, at all times, be represented by a natural person who is resident in Australia.

Only Australian flag operators may apply to the Australian Competition and Consumer Commission to examine whether conference members, and non-conference operators with substantial market power, are hindering other shipping operators from engaging efficiently in the provision of outward liner cargo services to an extent that is reasonable.


Sector:

Transport
Obligations Concerned: National Treatment (Article 10.3)

Senior Management and Boards of Directors (Article 10.8)

Level of Government: Central
Source of Measure: Air Navigation Act 1920 (Cth)

Ministerial Statement

Description: Investment

Total foreign ownership of Australian international airlines (other than Qantas) is restricted to a maximum of 49 per cent.

Furthermore, it is required that:

  • at least two-thirds of the Board members must be Australian citizens;
  • the Chairperson of the Board must be an Australian citizen;
  • the airline’s head office must be in Australia; and
  • the airline’s operational base must be in Australia.

Sector: Transport
Obligations Concerned: National Treatment (Article 10.3)

Senior Management and Boards of Directors (Article 10.8)

Level of Government: Central
Source of Measure: Qantas Sale Act 1992 (Cth)
Description: Investment

Total foreign ownership of Qantas Airways Ltd is restricted to a maximum of 49 per cent in aggregate, with individual foreign holdings limited to 25 per cent and aggregate holdings by foreign airlines to 35 per cent. In addition:

  • the head office of Qantas must always be located in Australia;
  • the majority of Qantas’ operational facilities must be located in Australia;
  • at all times, at least two-thirds of the directors of Qantas must be Australian citizens;
  • at a meeting of the board of directors of Qantas, the director presiding at the meeting (however described) must be an Australian citizen; and
  • Qantas is prohibited from taking any action to become incorporated outside Australia.

Annex I

Schedule of Chile

Sector: All Sectors
Sub-Sector:  
Industry

Classification:

 
Obligations Concerned: National Treatment (Article 10.3)
Level of Government: Central
Measures Decree Law 1939, Official Gazette, November 10, 1977, Rules for acquisition, administration and disposal of State owned assets, Title I (Decreto Ley 1939, Diario Oficial, noviembre 10, 1977, Normas sobre adquisición, administración y disposición de bienes del Estado, Título I)

Decree with Force of Law (D.F.L.) 4 of the Ministry of Foreign Affairs, Official Gazette, November 10, 1967 (Decreto con Fuerza de Ley (D.F.L.) 4 del Ministerio de Relaciones Exteriores, Diario Oficial, noviembre 10, 1967)

Description: Investment

Chile may only dispose of the ownership or other rights over “State land” to Chilean natural or juridical persons, unless the applicable legal exceptions, such as in Decree Law 1939 (Decreto Ley 1939), apply. “State land” for these purposes refers to State owned land up to a distance of 10 kilometers from the border and up to a distance of five kilometers from the coastline.

Corporeal immovable property situated in areas declared “the borderland zone” by virtue of D.F.L 4 of the Ministry of Foreign Affairs, 1967 (D.F.L. 4 del Ministerio de Relaciones Exteriores, 1967) may not be acquired, either as property or in any other title, by (1) natural persons with nationality of a neighbouring country; (2) juridical persons with their principal seat in a neighbouring country; (3) juridical persons with 40 per cent or more of capital owned by natural persons with nationality of a neighbouring country; or (4) juridical persons effectively controlled by such natural persons. Notwithstanding the foregoing, this limitation may not apply if an exemption is granted by a Supreme Decree (Decreto Supremo) of the President of the Republic based on considerations of national interest.


Sector: All Sectors
Sub-Sector:  
Industry

Classification:

 
Obligations Concerned: National Treatment (Article 9.3)

Local Presence (Article 9.6)

Level of Government: Central
Measures D.F.L. 1 of the Ministry of Labour and Social Welfare, Official Gazette, January 24, 1994, Labour Code, Preliminary Title, Book I, Chapter III (D.F.L. 1 del Ministerio del Trabajo y Previsión Social, Diario Oficial, enero 24, 1994, Código del Trabajo, Título preliminar, Libro I, Capítulo III)
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 Chilean personnel shall not be subject to this provision, as determined by the Directorate of Labour (Dirección del Trabajo).

An employee shall be understood to mean any natural person who supplies intellectual or material services, under dependency or subordination, pursuant to a contract of employment.

Article 20 of the Código del Trabajo shall be understood to mean that the personnel that an investor of Australia that has made an investment under Chapter 10 (Investment) requires for starting up in Chile will be treated, for a period of 18 months from the date of start up, as specialised technical personnel that cannot be replaced by national personnel.

For greater certainty, a contrato de trabajo is not mandatory for the supply of cross–border trade in services.


Sector: Communications
Sub-Sector:  
Industry

Classification:

 
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Performance Requirements (Article 10.7)

Senior Management and Boards of Directors (Article 10.8)

Local Presence (Article 9.6)

Level of Government: Central
Measures Law 18.838, Official Gazette, September 30, 1989, National Television Council, Titles I, II and III (Ley 18.838, Diario Oficial, septiembre 30, 1989, Consejo Nacional de Televisión, Títulos I, II y III)

Law 18.168, Official Gazette, October 2, 1982, General Telecommunications Law, Titles I, II and III (Ley 18.168, Diario Oficial, octubre 2, 1982, Ley General de Telecomunicaciones, Títulos I, II y III)

Law 19.733, Official Gazette, June 4, 2001, Law on Liberties of Opinion and Information and the Exercise of Journalism, Titles I and III (Ley 19.733, Diario Oficial, junio 4, 2001, Ley sobre las Libertades de Opinión e Información y Ejercicio del Periodismo, Títulos I y III)

Description: Investment and Cross-Border Trade in Services

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 person shall be constituted with domicile in Chile or have an agency authorised 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 include 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 10 per cent 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 Chile may be the titleholders or make use of permits for radio broadcasting telecommunications services. Only Chilean nationals may be president, managers or legal representatives of the juridical person.

Only juridical persons duly constituted in Chile and having domicile in Chile 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 or legal representatives of the juridical person.


Sector: Energy
Sub-Sector:  
Industry

Classification:

CPC 12 Crude petroleum and gas natural

CPC 13 Uranium and thorium ores

CPC 14 Metal ores

CPC 16 Other minerals

Obligations Concerned: National Treatment (Article 10.3)

Performance Requirements (Article 10.7)

Level of Government: Central
Measures Political Constitution of the Republic of Chile, Chapter III (Constitución Política de la República de Chile, Capítulo III)

Law 18.097, Official Gazette, January 21, 1982, Constitutional Organic Law on Mining Concessions, Titles I, II and III (Ley 18.097, Diario Oficial, enero 21, 1982, Orgánica Constitucional sobre Concesiones Mineras, Títulos I, II y III)

Law 18.248, Official Gazette, October 14, 1983, Mining Code, Titles I and II (Ley 18.248, Diario Oficial, octubre 14, 1983, Código de Minería, Títulos I y II)

Law 16.319, Official Gazette, October 23, 1965, Creates the Chilean Nuclear Energy Commission, Titles I, II and III (Ley 16.319, Diario Oficial, octubre 23, 1965, crea la Comisión Chilena de Energía Nuclear, Títulos I, II y 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 “treatment” (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 Chilean Nuclear Energy Commission (Comisión Chilena de Energía Nuclear) or, with its authorisation, jointly with third persons. Should the Commission grant such an authorisation, it may determine the terms and conditions thereof.


Sector: Mining
Sub-Sector:  
Industry

Classification:

CPC 13 Uranium and thorium ores

CPC 14 Metal ores

CPC 16 Other minerals

Obligations Concerned: National Treatment (Article 10.3)

Performance Requirements (Article 10.7)

Level of Government: Central
Measures Political Constitution of the Republic of Chile, Chapter III (Constitución Política de la República de Chile, Capítulo III)

Law 18.097, Official Gazette, January 21, 1982, Constitutional Organic Law on Mining Concessions, Titles I, II and III (Ley 18.097, Diario Oficial, enero 21, 1982, Orgánica Constitucional sobre Concesiones Mineras, Títulos I, II y III)

Law 18.248, Official Gazette, October 14, 1983, Mining Code, Titles I and III (Ley 18.248, Diario Oficial, octubre 14, 1983, Código de Minería, Títulos I y III)

Law 16.319, Official Gazette, October 23, 1965, Creates the Chilean Nuclear Energy Commission, Titles I, II and III (Ley 16.319, Diario Oficial, octubre 23, 1965, crea la Comisión Chilena de Energía Nuclear, Títulos I, II y III)

Description: Investment

The exploration, exploitation, and treatment (beneficio) of lithium, 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.

Chile has the right of first refusal, at the customary market prices and terms, for the purchase of mineral products from mining operations in Chile when thorium or uranium are contained in significant amounts therein.

For greater certainty, Chile may demand that producers separate from mining products the portion of:

(1) liquid or gaseous hydrocarbons;

(2) lithium;

(3) deposits of any kind existing in sea waters subject to national jurisdiction; and

(4) 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, that exists, in significant amounts, in such mining products and that can be economically and technically separated, for delivery to or for sale on behalf of the State. For these purposes, “economically and technically separated” means that the costs incurred to recover the four types of substances referred to above through a sound technical procedure and to commercialise and deliver those substances shall be lower than their commercial value.

Extracted natural atomic materials and lithium, and their concentrates, derivatives and compounds, cannot be subject to any kind of juridical acts, unless executed or entered into by the Chilean Nuclear Energy Commission (Comisión Chilena de Energía Nuclear), or with its prior authorisation. Should the Commission grant an authorisation, it shall determine, in turn, the conditions granted therein.


Sector: Fisheries
Sub-Sector: Aquaculture
Industry

Classification:

CPC 04 Fish and other fishing products
Obligations Concerned: National Treatment (Article 10.3)
Level of Government: Central
Measures Law 18.892, Official Gazette, January 21, 1992, General Law on Fisheries and Aquaculture, Titles I and VI (Ley 18.892, Diario Oficial, enero 21, 1992, Ley General de Pesca y Acuicultura, Títulos I y VI)
Description: Investment

A concession or authorisation is required for the use of beaches, land adjacent to beaches (terrenos de playas), water-columns (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 hold an authorisation or concession to carry out aquaculture activities.


Sector: Fisheries
Sub-Sector:  
Industry

Classification:

CPC 04 Fish and other fishing products
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Senior Management and Boards of Directors (Article 10.8)

Local Presence (Article 9.6)

Level of Government: Central
Measures Law 18.892, Official Gazette, January 21, 1992, General Law on Fisheries and Aquaculture, Titles I, III, IV and IX (Ley 18.892, Diario Oficial, enero 21, 1992, Ley General de Pesca y Acuicultura, Títulos I, III, IV y IX)

Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I and II (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I y II)

Description: Investment and Cross-Border Trade in Services

A permit issued by the Vice-Ministry of Fishing (Subsecretaría de Pesca) is required in order to harvest and catch hydrobiological species in internal waters, in the territorial sea and in the exclusive economic zone.

Only Chilean natural persons or juridical persons constituted in accordance with Chilean law and foreigners with permanent residency may hold permits to harvest and catch hydrobiological species.

Only Chilean vessels are permitted to fish in internal waters, in the territorial sea and in the exclusive economic zone. “Chilean vessels” are those defined in the Navigation Law (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. Such juridical person must be constituted in Chile with principal domicile and real and effective seat in Chile. The president, manager and the majority of the directors or administrators must be 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 requirements mentioned above.

A joint ownership (comunidad) may register a vessel if (1) the majority of the joint ownership is Chilean with domicile and residency in Chile; (2) the administrators are Chilean natural persons; and (3) the majority of the rights of the joint ownership (comunidad) 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 requirements mentioned above.

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 mentioned above.

In cases of reciprocity granted to Chilean vessels by any other country, fishing vessels specifically authorised by the maritime authorities pursuant to powers conferred by law may be exempted from the requirements mentioned above on equivalent terms provided to Chilean vessels by that country.

Access to small-scale fishing (pesca artesanal) activities shall be subject to registration in the registry for small-scale fishing (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 person constituted by the aforementioned persons.


Sector: Sports, Industrial Fishing and Hunting, and Recreational Services
Sub-Sector:  
Industry

Classification:

CPC 881 Services incidental to agriculture, hunting and forestry

CPC 882 Services incidental to fishing

CPC 96499 Other recreational services n.e.c.

Obligations Concerned: Local Presence (Article 9.6)
Level of Government: Central
Measures Law 17.798, Official Gazette, October 21, 1972, Title I (Ley 17.798, Diario Oficial, octubre 21, 1972, Título I)

Supreme Decree 77 of the Ministry of National Defence, Official Gazette, August 14, 1982 (Decreto Supremo 77 del Ministerio de Defensa Nacional, Diario Oficial, agosto 14, 1982)

Description: Cross-Border Trade in Services

Any person who owns guns, explosives or similar substances must register with the appropriate authority in its domicile, for which purpose a request shall be submitted to the General Directorate for National Mobilisation of the Ministry of National Defence (Dirección General de Movilización Nacional del Ministerio de Defensa Nacional).

Any natural or juridical person registered as an importer of fireworks may request authorisation for importation and entrance thereof into Chile from Group No. 3 of the General Directorate for National Mobilisation and may keep stocks of the said elements for sale to persons holding authorisation to stage pyrotechnical shows.

The Supervisory Authority (Autoridad Fiscalizadora) shall only authorise pyrotechnical shows if a report is available with regard to the installation, development, and security measures for the show, which must be signed and approved by a fireworks programmer registered in the national registries of the General Directorate for National Mobilisation or by a professional certified by the said General Directorate.

For the production and execution of pyrotechnical shows, the presence of at least a fireworks expert handler registered with the General Directorate shall be required.


Sector: Specialised Services
Sub-Sector: Customs Agents (Agentes de Aduana) and Brokers (Despachadores de Aduana)
Industry

Classification:

CPC 748 Freight transport agency services

CPC 749 Other supporting and auxiliary transport services

Obligations Concerned: National Treatment (Article 9.3)

Local Presence (Article 9.6)

Level of Government: Central
Measures D.F.L. 30 of the Ministry of Finance, Official Gazette, April 13, 1983, Book IV (D.F.L. 30 del Ministerio de Hacienda, Diario Oficial, abril 13, 1983, Libro IV)

D.F.L. 2 of the Ministry of Finance, 1998 (D.F.L. 2 del Ministerio de Hacienda, 1998)

Description: Cross-Border Trade in Services

Only Chilean natural persons may act as customs brokers (Despachadores de Aduana) or agents (Agentes de Aduana).


Sector: Specialised Services
Sub-Sector: Private Armed Security Guards
Industry

Classification:

CPC 873 Investigation and security services
Obligations Concerned: National Treatment (Article 9.3)
Level of Government: Central
Measures Decree 1.773 of the Ministry of Interior, Official Gazette, November 14, 1994 (Decreto 1.773 del Ministerio del Interior, Diario Oficial, noviembre 14, 1994)
Description: Cross-Border Trade in Services

Only Chilean nationals may provide services as private armed security guards.


Sector: Business Services
Sub-Sector: Research Services
Industry

Classification:

CPC 851 Research and experimental development services on natural sciences and engineering

CPC 853 Interdisciplinary research and experimental development services

CPC 882 Services incidental to fishing

Obligations Concerned: National Treatment (Article 9.3)
Level of Government: Central
Measures Supreme Decree 711 of the Ministry of National Defence, Official Gazette, October 15, 1975 (Decreto Supremo 711 del Ministerio de Defensa Nacional, 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 Chilean Army Hydrographic Institute (Instituto Hidrográfico de la Armada de Chile) and shall comply with the requirements established in the corresponding regulation.


Sector: Business Services
Sub-Sector: Research Services
Industry

Classification:

CPC 851 Research and experimental development services on natural sciences and engineering

CPC 853 Interdisciplinary research and experimental development services

CPC 8675 Engineering related scientific and technical consulting services

Obligations Concerned: National Treatment (Article 9.3)
Level of Government: Central
Measures D.F.L. 11 of the Ministry of Economic Affairs, Development and Reconstruction, Official Gazette, December 5, 1968 (D.F.L. 11 del Ministerio de Economía, Fomento y Reconstrucción, Diario Oficial, diciembre 5, 1968)

Decree 559 of the Ministry of Foreign Affairs, Official Gazette, January 24, 1968 (Decreto 559 del Ministerio de Relaciones Exteriores, Diario Oficial, enero 24, 1968)

D.F.L. 83 of the Ministry of Foreign Affairs, Official Gazette, March 27, 1979 (D.F.L. 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, intending to perform explorations for work of a scientific or technical nature, or mountain climbing, in areas that are adjacent to Chilean borders shall apply for the appropriate authorisation through a Chilean consul in the country of domicile of the natural person. The Chilean consul shall then send such application directly to the National Directorate of Borders and Frontiers of the State (Dirección Nacional de Fronteras y Límites del Estado). The Directorate may order that one or more Chilean natural persons working in the appropriate related activities shall join the explorations in order to become acquainted with the studies to be undertaken.

The Operations Department of the National Directorate of Borders and Frontiers of the State (Departamento de Operaciones de la Dirección Nacional de Fronteras y Límites del Estado) shall decide and announce whether it authorises or rejects geographic or scientific explorations to be carried out by foreign juridical or natural persons in Chile. The National Directorate of Borders and Frontiers of the State shall authorise and will supervise all explorations involving work of a scientific or technical nature, or mountain climbing, that foreign juridical persons or natural persons residing abroad intend to carry out in areas adjacent to Chilean borders.


Sector: Business Services
Sub-Sector: Research in Social Sciences
Industry

Classification:

CPC 86751 Geological, geophysical and other scientific prospecting services
Obligations Concerned: National Treatment (Article 9.3)
Level of Government: Central
Measures Law 17.288, Official Gazette, February 4, 1970, Title V (Ley 17.288, Diario Oficial, febrero 4, 1970, Título V)

Supreme Decree 484 of the Ministry of Education, Official Gazette, April 2, 1991 (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, probing and/or collect anthropological, archeological or paleontological material must apply for a permit from the National Monuments Council (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 governmental scientific institution or a Chilean university.

The aforementioned permit can be granted to (1) Chilean researchers having the pertinent scientific background in archeology, anthropology or paleontology, duly certified as appropriate, and also having a research project and due institutional sponsorship; and (2) foreign researchers, provided that they are engaged by a reliable scientific institution and that they work in collaboration with a Chilean governmental scientific institution or a Chilean university. Museum directors or curators acknowledged by the National Monuments Council (Consejo de Monumentos Nacionales), professional archeologists, anthropologists or paleontologists, as appropriate, and the members of the Chilean Society of Archeology (Sociedad Chilena de Arqueología) shall be authorised to perform salvage-related works. Salvage-related works involve the urgent recovery of data or archeological, anthropological or paleontological artifacts or species threatened by imminent loss.


Sector: Business Services
Sub-Sector: Printing, Publishing and Other Related Industries
Industry

Classification:

 
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Senior Management and Boards of Directors (Article 10.8)

Local Presence (Article 9.6)

Level of Government: Central
Measures Law 19.733, Official Gazette, June 4, 2001, Law on Liberties of Opinion and Information and the Exercise of Journalism, Titles I & III (Ley 19.733, Diario Oficial, junio 4, 2001, Ley sobre las Libertades de Opinión e Información y Ejercicio del Periodismo, Títulos I y III)
Description: Investment and Cross-Border Trade in Services

The owner of a social communication medium such as newspapers, magazines or regularly published texts whose publishing address is located in Chile, 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 person, shall be constituted with domicile in Chile or have an agency authorised to operate within the national territory. Only Chilean nationals may be president, administrators or legal representatives of the juridical person. The director legally responsible and the person who replaces him or her must be Chilean with domicile and residence in Chile.


Sector: Professional Services
Sub-Sector: Professional, Technical and Specialised Services
Industry

Classification:

CPC 86211 Financial auditing services
Obligations Concerned: National Treatment (Article 9.3)

Local Presence (Article 9.6)

Level of Government: Central
Measures Law 18.046, Official Gazette, October 22, 1981, Corporations Law, Title V (Ley 18.046, Diario Oficial, octubre 22, 1981, Ley de Sociedades Anónimas, Título V)

Supreme Decree 587 of the Ministry of Finance, Official Gazette, November 13, 1982, Corporations Act (Decreto Supremo 587 del Ministerio de Hacienda, Diario Oficial, noviembre 13, 1982, Reglamento de Sociedades Anónimas)

Decree Law 1.097, Official Gazette, July 25, 1975, Titles I, II, III and IV (Decreto Ley 1.097, Diario Oficial, julio 25, 1975, Títulos I, II, III y IV)

Decree Law 3.538, Official Gazette, December 23, 1980, Titles I, II, III and IV (Decreto Ley 3.538, Diario Oficial, diciembre 23, 1980, Títulos I, II, III y IV) Circular 2.714, October 6, 1992; Circular 1, January 17, 1989; Chapter 19 Updated Collection, Superintendency of Banks and Financial Institutions Norms on External Auditors (Circular 2.714, octubre 6,1992; Circular 1, enero 17, 1989; Capítulo 19 de la Recopilación Actualizada de Normas de la Superintendencia de Bancos e Instituciones Financieras sobre auditores externos)

Circulars 327, June 29, 1983 and 350, October 21, 1983, Superintendency of Stock Corporations and Insurance Companies (Circulares 327, junio 29, 1983 y 350, octubre 21, 1983, de la Superintendencia de Valores y Seguros)

Description: Cross-Border Trade in Services

External auditors of financial institutions must be registered in the Registry of External Auditors kept by the Superintendency of Banks and Financial Institutions (Superintendencia de Bancos e Instituciones Financieras) and the Superintendency of Stock Corporations and Insurance Companies (Superintendencia de Valores y Seguros). Only firms legally incorporated in Chile as partnerships (sociedades de personas) or associations (asociaciones) and whose main line of business is auditing services may be inscribed in the Registry.


Sector: Professional Services
Sub-Sector: Legal Services
Industry

Classification:

CPC 861 Legal services
Obligations Concerned: National Treatment (Article 9.3)

Most-Favoured-Nation Treatment (Article 9.4)

Local Presence (Article 9.6)

Level of Government: Central
Measures Tribunals Organic Code, Title XV (Código Orgánico de Tribunales, Título XV)

Decree 110 of the Ministry of Justice, Official Gazette, March 20, 1979 (Decreto 110 del Ministerio de Justicia, Diario Oficial, marzo 20, 1979)

Law 18.120, Official Gazette, May 18, 1982 (Ley 18.120, Diario Oficial, mayo 18, 1982)

Agreement on Mutual Recognition of Examinations and Professional Degrees between Chile and Ecuador, Official Gazette, July 16, 1937 (Convenio sobre mutuo reconocimiento de exámenes y de títulos profesionales entre Chile y Ecuador)

Description: Cross-Border Trade in Services

Only Chilean and foreign nationals with residence in Chile, who have completed the totality of their legal studies in the country, shall be authorised to practice as lawyers (abogados). This paragraph shall be understood in accordance with Chile’s obligations under any other international treaty.

Only lawyers (abogados) duly qualified to practise law shall be authorised to plead a case in Chilean courts and to file the first legal action or claim of each party.

The following documents, among others, shall be drawn up solely by lawyers (abogados): drafting of articles of incorporation and amendments thereto; mutual termination of obligations or liquidation of corporations; liquidation of community property between spouses (sociedad conyugal); distribution of property; articles of incorporation of juridical persons, associations, water canal members (asociaciones de canalistas), and cooperative associations (cooperativas); agreements governing financial transactions; corporate bond issuance agreements; and sponsoring applications for legal representation made by corporations and foundations.

Chile has a bilateral agreement with Ecuador, whereby Ecuadorian citizens holding a lawyers degree granted by a University in Ecuador are admitted to practise as lawyers (abogados) in Chile.

None of these measures apply to foreign legal consultants who practise or advise on international law or Australian law.


Sector: Professional, Technical and Specialised Services
Sub-Sector: Auxiliary Services in the Administration of Justice
Industry

Classification:

CPC 861 Legal services
Obligations Concerned: National Treatment (Article 9.3)

Local Presence (Article 9.6)

Level of Government: Central
Measures Tribunals Organic Code, Titles XI and XII (Código Orgánico de Tribunales, Títulos XI y XII)

Real State Custodian Registry Act, Titles I, II and III (Reglamento del Registro Conservador de Bienes Raíces, Títulos I, II y III)

Law 18.118, Official Gazette, May 22, 1982, Title I (Ley 18.118, Diario Oficial, mayo 22, 1982, Título I)

Decree 197 of the Ministry of Economic Affairs, Development and Reconstruction, Official Gazette, August 8, 1985 (Decreto 197 del Ministerio de Economía, Fomento y Reconstrucción, Diario Oficial, agosto 8, 1985)

Law 18.175, Official Gazette, October 28, 1982, Title III (Ley 18.175, Diario Oficial, octubre 28, 1982, Título III)

Description: Cross-Border Trade in Services

Justice ancillaries (auxiliares de justicia) must have their residence in the same city or place where the court house for which they render services is domiciled.

Public defenders (defensores públicos), public notaries (notarios públicos), and custodians (conservadores) shall be Chilean natural persons and fulfill the same requirements needed to become a judge.

Archivists (archiveros) and arbitrators at law (arbitros de derecho) must be lawyers (abogados) and, therefore, must be Chilean or foreign nationals with residence in Chile who have completed the totality of their legal studies in the country. Australian lawyers may assist in arbitration when dealing with Australian and international law and the private parties request it.

Only Chilean natural persons with the right to vote, and foreign natural persons with permanent residence and the right to vote, can act as process servers (receptores judiciales) and superior court attorneys (procuradores del número).

Only Chilean natural persons, foreign natural persons with permanent residence in Chile or Chilean juridical persons may be auctioneers (martilleros públicos).

Receivers in bankruptcy (síndicos de quiebra) must have a professional or technical degree granted by a university or a professional or technical institute recognised by Chile. Receivers in bankruptcy must have at least three years of experience in the commercial, economic or juridical field.


Sector: Transportation
Sub-Sector: Air Transportation
Industry

Classification:

CPC 734 Rental services of aircraft with operator

CPC 7469 Other supporting services for air transport

Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Senior Management and Boards of Directors (Article 10.8)

Local Presence (Article 9.6)

Level of Government: Central
Measures Law 18.916, Official Gazette, February 8, 1990, Code of Aeronautics, Preliminary Title and Titles II and III(Ley 18.916, Diario Oficial, febrero 8, 1990, CódigoAeronáutico, Títulos Preliminar, II y III)

Decree Law 2.564, Official Gazette, June 22, 1979, Commercial Aviation Norms (Decreto Ley 2.564, Diario Oficial, junio 22, 1979, Normas sobre Aviación Comercial)

Supreme Decree 624 of the Ministry of National Defence, Official Gazette, January 5, 1995 (Decreto Supremo 624 del Ministerio de Defensa Nacional, Diario Oficial, enero 5, 1995)

Law 16.752, Official Gazette, February 17, 1968, Title II (Ley 16.752, Diario Oficial, febrero 17, 1968, Título II)

Decree 34 of the Ministry of National Defence, Official Gazette, February 10, 1968 (Decreto 34 del Ministerio de Defensa Nacional, Diario Oficial, febrero 10, 1968)

Supreme Decree 102 of the Ministry of Transport and Telecommunications, Official Gazette, June 17, 1981 (Decreto Supremo 102 del Ministerio de Transportes y Telecomunicaciones, Diario Oficial, junio 17, 1981)

Supreme Decree 172 of the Ministry of National Defence, Official Gazette, March 5, 1974 (Decreto Supremo 172 del Ministerio de Defensa Nacional, Diario Oficial, marzo 5, 1974)

Supreme Decree 37 of the Ministry of National Defence, Official Gazette, December 10, 1991 (Decreto Supremo 37 del Ministerio de Defensa Nacional, Diario Oficial, diciembre 10, 1991)

Decree 234 of the Ministry of National Defence, Official Gazette, June 19, 1971 (Decreto 234 del Ministerio de Defensa Nacional, Diario Oficial, junio 19, 1971)

Description: Investment and Cross-Border Trade in Services

Only a Chilean natural or juridical person may register an aircraft in Chile. Such juridical person must be constituted in Chile with principal domicile and real and effective seat in Chile. In addition, a majority of its ownership must be held by Chilean natural or juridical persons, which in turn must comply with the aforementioned requisites.

The president, manager, majority of directors and/or administrators of the juridical person must be Chilean natural persons.

A foreign registered private aircraft engaged in non-commercial activities may not remain in Chile more than 30 days from its date of entry into Chile, unless authorised by the General Directorate for Civil Aeronautics (Dirección General de Aeronáutica Civil). For greater certainty, this measure shall not apply to specialty air services as defined in Article 9.1(l) (Definitions, Cross-Border Trade in Services Chapter), except for glider towing and parachute jumping.

In order to work as crew members on aircraft used by a Chilean aviation company, foreign aviation personnel shall be required first to obtain a Chilean licence with the appropriate permits enabling them to discharge the pertinent duties.

Foreign aviation personnel shall be allowed to work in that capacity in Chile provided that Chilean civil aviation authorities validate the licence or authorisation granted by a foreign country. In the absence of an international agreement regulating such validation, the licence or authorisation shall be granted under conditions of reciprocity. In that case, proof shall be submitted showing that the licences or authorisations were issued or validated by the pertinent authorities in the country where the aircraft is registered, that the documents are in force, and that the requirements for issuing or validating such licences and authorisations meet or exceed the standards required in Chile for analogous cases.

Air transportation services may be provided by Chilean or foreign companies subject to the condition that, along the routes in which they operate, foreigners grant similar rights to Chilean aviation companies when so requested. The Civil Aviation Board (Junta de Aeronáutica Civil), by means of a substantiated resolution (resolución fundada), may terminate, suspend or limit domestic traffic services (cabotage) or any other class of commercial aviation services carried out solely in Chilean territory by foreign companies or aircraft if in their country of origin the right to equal treatment for Chilean companies and aircraft is denied.

Foreign civil aircraft not engaging in commercial transport activities or non-scheduled commercial air transport intending to enter Chilean territory, including its territorial waters, to fly over Chile, and to make stop-overs for non-commercial purposes, shall be required to notify the General Directorate for Civil Aeronautics at least 24 hours in advance. Commercial traffic aircraft not operating on a regular basis shall not be allowed to carry passengers, cargo or mail in Chilean territory without prior authorisation by the Civil Aviation Board (Junta de Aeronáutica Civil).


Sector: Transportation
Sub-Sector: Water Transport Services and Shipping
Industry

Classification:

CPC 721 Transport services by sea–going vessels

CPC 722 Transport services by non–sea–going vessels

Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Senior Management and Boards of Directors (Article 10.8)

Local Presence (Article 9.6)

Level of Government: Central
Measures Decree Law 3.059, Official Gazette, December 22,1979, Merchant Fleet Promotion Law, Titles I and II (Decreto Ley 3.059, Diario Oficial, diciembre 22, 1979, Ley de Fomento a la Marina Mercante, Títulos I y II)

Supreme Decree 24, Official Gazette, March 10, 1986, Act of Decree Law 3.059, Titles I and II (Decreto Supremo 24, Diario Oficial, marzo 10, 1986, Reglamento del Decreto Ley 3.059, Títulos I y II)

Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I, II, III, IV and V (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I, II, III, IV y V)

Supreme Decree 153, Official Gazette, March 11, 1966, Approves the Sea People, Fluvial and Lacustrine Personnel Registration General Act (Decreto Supremo 153, Diario Oficial, marzo 11, 1966, Aprueba el Reglamento General de Matrícula del Personal de Gente de Mar, Fluvial y Lacustre)

Code of Commerce, Book III, Titles I, IV and V (Código de Comercio, Libro III, Títulos I, IV y V)

Law 19.420, Official Gazette, October 23, 1995, Establishes incentives for the economic development of the Provinces of Arica and Parinacota, and modifies the legal bodies indicated therein, Title Various Provisions (Ley 19.420, Diario Oficial, octubre 23, 1995, Establece incentivos para el desarrollo económico de las provincias de Arica y Parinacota y modifica cuerpos legales que indica, Título Disposiciones Varias)

Description: Investment and Cross-Border Trade in Services

Only a Chilean natural or juridical person may register a vessel in Chile. Such juridical person must be constituted with principal domicile and real and effective seat in Chile. The president, manager and majority of the directors or administrators must be Chilean natural persons. In addition, more than 50 per cent of its 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 (1) the majority of the joint ownership is Chilean with domicile and residency in Chile; (2) the administrators are Chileans; and (3) the majority of the rights of the joint ownership 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 to be considered Chilean.

Special vessels owned by foreign natural or juridical persons domiciled in Chile may under certain conditions be registered in the country. For these purposes, a special vessel does not include a fishing vessel. Foreign natural or juridical persons must meet the following conditions: (1) domicile in Chile; (2) principal head office in Chile; or (3) undertaking a profession or commercial activity in a permanent way in Chile. The maritime authority may, for reasons of national security, impose certain special restrictions on the operation of these vessels.

The maritime authority may provide better treatment based on the principle of reciprocity.

Foreign vessels shall be required to use pilotage, anchoring and harbour pilotage services when the maritime authorities so require. In tugging activities or other maneouvres performed in Chilean ports, only tugboats flying the Chilean flag shall be used.

Captains shall be required to be Chilean nationals and to be acknowledged as such by the pertinent authorities. Officers on Chilean vessels must be Chilean natural persons registered in the Officers’ Registry (Registro de oficiales). Crewmembers of a Chilean vessel must be Chilean, have the permit granted by the Maritime Authority (Autoridad Marítima) and be registered in the respective Registry. Professional titles and licences granted by a foreign country shall be considered valid for the discharge of officers' duties on national vessels pursuant to a substantiated resolution (resolución fundada) issued by the Director of the Maritime Authority.

Ship captains (patrón de nave) shall be Chilean nationals. A ship captain is a natural person who, pursuant to the corresponding title awarded by the Director of the Maritime Authority, is empowered to exercise command on smaller vessels and on certain special larger vessels.

Only Chilean nationals, or foreigners with domicile in Chile, shall be authorised to act as fishing boat captains (patrones de Pesca), machinists (mecánicos-motoristas), machine operators (motoristas), sea-faring fishermen (marineros pescadores), small-scale fishermen (pescadores), industrial or maritime trade technical employees or workers, and industrial and general ship service crews on fishing factories or fishing boats when so requested by ship operators (armadores) in order to initiate such work.

In order to fly the national flag, the ship captain (patrón de nave), officers and crew must be Chilean nationals. Nevertheless, the General Directorate for the Maritime Territory and Merchant Fleet (Dirección General del Territorio Marítimo y de Marina Mercante), on the basis of a substantiated resolution (resolución fundada), may authorise the hiring of foreign personnel, on a temporary basis if essential, with the exception of the captain, who, at all times, must be a Chilean national.

Only a Chilean natural or juridical person shall be authorised to work in Chile as a multimodal operator.

Cabotage shall be reserved for Chilean vessels. Cabotage shall include the ocean, river or lake shipping of passengers and cargo between different points of the national territory and between such points and naval artifacts installed in territorial waters or in the exclusive economic zone.

Foreign merchant vessels may be able to participate in cabotage when cargo volumes exceed 900 tons, following a public tender called by the user with due anticipation. When the cargo volumes involved are equal to or less than 900 tons, and no vessels flying the Chilean flag are available, the Maritime Authority shall authorise embarking such cargo on foreign merchant vessels. The reservation of coastal trade to Chilean vessels shall not apply in the event of cargo coming from or destined for ports located in the Province of Arica (Provincia de Arica).

In the event that Chile should adopt, for reasons of reciprocity, a cargo reservation measure applicable to international cargo transportation between Chile and a non-Party, the reserved cargo shall be transported in Chilean-flag vessels or in vessels considered as such.


Sector: Transportation
Sub-Sector: Water Transport Services and Shipping
Industry

Classification:

CPC 721 Transport services by sea–going vessels

CPC 722 Transport services by non–sea–going vessels

Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Senior Management and Boards of Directors (Article 10.8)

Local Presence (Article 9.6)

Level of Government: Central
Measures Code of Commerce, Book III, Titles I, IV and V (Código de Comercio, Libro III, Títulos I, IV y V)

Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I, II and IV (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I, II y IV)

Decree 90 of the Ministry of Labour and Social Welfare, Official Gazette, January 21, 2000 (Decreto 90 del Ministerio de Trabajo y Previsión Social, Diario Oficial, enero 21, 2000)

Decree 49 of the Ministry of Labour and Social Welfare, July 16, 1999 (Decreto 49 del Ministerio de Trabajo y Previsión Social, Diario Oficial, julio 16, 1999)

Labour Code, Book I, Title II, Chapter III, paragraph 2 (Código del Trabajo, Libro I, Título II, Capítulo III, párrafo 2º)

Description: Investment and Cross-Border Trade in Services

Shipping agents or representatives of ship operators, owners or captains, whether they are natural or juridical persons, shall be required to be Chilean.

Work of stowage and dockage performed by natural persons is reserved to Chileans who are duly accredited by the corresponding authority to carry out such work and have an office established in Chile.

Whenever these activities are carried out by juridical persons, they must be legally constituted in Chile and have their principal domicile in Chile. The chairman, administrators, managers or directors must be Chilean. At least 50 per cent of the corporate capital must be held by Chilean natural or juridical persons. Such enterprises shall designate one or more empowered agents, who will act in their representation and who shall be Chilean nationals.

Harbour workers shall pass a basic course on harbour security in a Technical Execution Office (Organismo Técnico de Ejecución) authorised by the National Bureau for Training and Employment (Servicio Nacional de Capacitación y Empleo), according to the norms established in the respective regulation.

Anyone unloading, transshipping and, generally, using continental or insular Chilean ports, particularly for landing fish catches or processing fish catches on board, shall also be required to be a Chilean natural or juridical person.


Sector: Transportation
Sub-Sector: Land Transportation
Industry

Classification:

CPC 712 Other land transport services
Obligations Concerned: National Treatment (Article 9.3)

Most-Favoured-Nation Treatment (Article 9.4)

Local Presence (Article 9.6)

Level of Government: Central
Measures Supreme Decree 212 of the Ministry of Transport and Telecommunications, Official Gazette, November 21, 1992 (Decreto Supremo 212 del Ministerio de Transportes y Telecomunicaciones, Diario Oficial, noviembre 21, 1992)

Decree 163 of the Ministry of Transport and Telecommunications, Official Gazette, January 4, 1985 (Decreto 163 del Ministerio de Transportes y Telecomunicaciones, Diario Oficial, enero 4, 1985)

Supreme Decree 257 of the Ministry of Foreign Affairs, Official Gazette, October 17, 1991 (Decreto Supremo 257 del Ministerio de Relaciones Exteriores, Diario Oficial, octubre 17, 1991)

Description: Cross-Border Trade in Services

Land transportation service providers shall register in the National Registry by submitting an application to the Regional Secretary of Transport and Telecommunications (Secretaría Regional Ministerial del Ministerio de Transportes y Telecomunicaciones). In the case of urban services, applicants shall submit the application to the Regional Secretary responsible for the area in which the service is to be provided and, in the case of rural and interurban services, in the region where the applicant is domiciled. The application shall provide the detailed information required by law, attaching thereto, among other documents, a properly certified photocopy of the National Identity Card and, in the case of juridical persons, the public instruments accrediting its constitution and name and the domicile of its legal representative and documents evidencing such capacity.

Foreign natural and juridical persons qualified to provide international transportation services in Chilean territory cannot provide local transportation services or participate in any manner whatsoever in the said activities in the national territory.

Only companies with actual and effective domicile in Chile and organised under the laws of Chile, Argentina, Bolivia, Brazil, Peru, Uruguay or Paraguay shall be authorised to provide international land transportation services between Chile and Argentina, Bolivia, Brazil, Peru, Uruguay or Paraguay. Furthermore, to obtain an international land transport permit, in the case of foreign juridical persons, more than 50 per cent of its corporate capital and effective control shall be held by nationals of Chile, Argentina, Bolivia, Brazil, Peru, Uruguay or Paraguay.


Sector: Transportation
Sub-Sector: Land Transportation
Industry

Classification:

CPC 712 Other land transport services
Obligations Concerned: National Treatment (Article 9.3)

Most-Favoured-Nation Treatment (Article 9.4)

Level of Government: Central
Measures Law 18.290, Official Gazette, February 7, 1984, Title IV (Ley 18.290, Diario Oficial, febrero 7, 1984, Título IV)

Supreme Decree 485 of the Ministry of Foreign Affairs, Official Gazette, September 7, 1960, Geneva Convention (Decreto Supremo 485 del Ministerio de Relaciones Exteriores, Diario Oficial, septiembre 7, 1960, Convención de Ginebra)

Description: Cross-Border Trade in Services

Motor vehicles bearing foreign licence plates that enter Chile on a temporary basis, pursuant to provisions set forth in the 1949 Geneva Convention on Road Traffic, shall circulate freely throughout the national territory for the period established therein, provided that they comply with the requirements established by Chilean law.

Holders of valid international driving licences or certificates issued in a foreign country in accordance with the Geneva Convention may drive anywhere within the national territory. The driver of a vehicle bearing foreign licence plates who holds an international driver’s licence shall present, upon request by the authorities, the documents certifying both the roadworthiness of the vehicle and the use and validity of his or her personal documents.

Annex II

1. The Schedule of a Party to this Annex sets out, pursuant to Articles 9.7 (Non-Conforming Measures – Cross-Border Trade in Services) and 10.9 (Non-Conforming Measures – Investment), the specific sectors, sub-sectors or activities for which that Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:

(a) Article 9.3 (National Treatment – Cross-Border Trade in Services) or 10.3 (National Treatment – Investment);

(b) Article 9.4 (Most-Favoured-Nation Treatment – Cross-Border Trade in Services) or 10.4 (Most-Favoured-Nation Treatment – Investment);

(c) Article 9.5 (Market Access– Cross-Border Trade in Services);

(d) Article 9.6 (Local Presence– Cross-Border Trade in Services);

(e) Article 10.7 (Performance Requirements– Investment); or

(f) Article 10.8 (Senior Management and Boards of Directors– Investment).

2. Each Schedule entry sets out the following elements:

(a) Sector refers to the sector for which the entry is made;

(b) Obligations Concerned specifies the obligation(s) referred to in paragraph 1 that, pursuant to Articles 9.7.2 and Article 10.9.2, do not apply to the sectors, sub-sectors or activities listed in the entry;

(c) Description sets out the scope of the sector, sub-sector or activities covered by the entry; and

(d) Existing Measures identifies, for transparency purposes, existing measures that apply to the sector, sub-sector or activities covered by the entry.

3. In accordance with Articles 9.7.2 and 10.9.2, the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, sub-sectors and activities identified in the Description element of that entry.

Annex II

Schedule of Australia

Sector: All
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Performance Requirements (Article 10.7)

Local Presence (Article 9.6)

Senior Management and Boards of Directors (Article 10.8)

Description: Cross-Border Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure according preferences to any indigenous person or organisation or providing for the favourable treatment of any indigenous person or organisation in relation to acquisition, establishment or operation of any commercial or industrial undertaking in the service sector.

Australia reserves the right to adopt or maintain any measure with respect to investment that accords preferences to any indigenous person or organisation or providing for the favourable treatment of any indigenous person or organisation.

For the purpose of this non-conforming measure, an indigenous person means a person of the Aboriginal race of Australia or a descendent of an indigenous inhabitant of the Torres Strait Islands.

Existing Measures: Legislation and ministerial statements at all levels of government including Australia’s foreign investment policy and the Native Title Act (Cth).

Sector: All
Obligations Concerned: National Treatment (Article 10.3)

Performance Requirements (Article 10.7)

Description: Investment

Australia reserves the right to adopt or maintain any measure with respect to proposals by “foreign persons” to invest in Australian urban land23-[70](including interests that arise via leases, financing and profit sharing arrangements, and the acquisition of interests in urban land corporations and trusts), other than developed non-residential commercial real estate.

Existing Measures: Australia’s foreign investment policy, which comprises the Foreign Acquisitions and Takeovers Act 1975 (Cth)(FATA); Foreign Acquisitions and Takeovers Regulations 1989; and Ministerial Statements.

Sector: All
Obligations Concerned: National Treatment (Article 10.3)

Performance Requirements (Article 10.7)

Senior Management and Boards of Directors (Article 10.8)

Description: Investment

Australia reserves the right to adopt or maintain any measure with respect to:

(a) the devolution to the private sector of services provided in the exercise of governmental authority at the time that the Agreement enters into force; and

(b) the privatisation of government owned entities or assets.

Existing Measures:  

Sector: All
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)
Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)
Local Presence (Article 9.6)
Performance Requirements (Article 10.7)
Senior Management and Boards of Directors (Article 10.8)
Description: Cross-Border Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, child care, public utilities and public transport.

Existing Measures:  

Sector: Agriculture
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)
Description: Cross-Border Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to marketing boards.

Existing Measures: Wheat Marketing Act 1989 (Cth)

Sector: Communication Services, and Recreational, Cultural and Sporting Services
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Performance Requirements (Article 10.7)

Local Presence (Article 9.6)

Senior Management and Boards of Directors (Article 10.8)

Description: Cross-Border Trade in Services and Investment Australia reserves the right to adopt or maintain any measure with respect to:

  • the creative arts, 23-[71] cultural heritage23-[72] and other cultural industries, including audiovisual services, entertainment services and libraries, archives, museums and other cultural services;
  • broadcasting and audiovisual services, including measures with respect to planning, licensing and spectrum management, and including:
    • services offered in Australia; and
    • international services originating from Australia.
Existing Measures: Broadcasting Services Act 1992 (Cth)

Radiocommunications Act 1992 (Cth)

There are minimum Australian content requirements for commercial television.


Sector: Education services
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Local Presence (Article 9.6)

Performance Requirements (Article 10.7)

Senior Management and Boards of Directors (Article 10.8)

Description: Cross-Border Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to primary education.

Existing Measures:  

Sector: Education Services
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Local Presence (Article 9.6)

Performance Requirements (Article 10.7)

Senior Management and Boards of Directors (Article 10.8)

Description: Cross-Border Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to the supply of public secondary and higher educational services.

Existing Measures:  

Sector: Gambling and Betting
Obligations Concerned: National Treatment (Articles 9.3 and 10.3)

Performance Requirements (Article 10.7)

Local Presence (Article 9.6)

Senior Management and Boards of Directors (Article 10.8)

Description: Cross-Border Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to gambling and betting.

Existing Measures: Legislation and ministerial statements including the Interactive Gambling Act 2001(Cth).

Sector:

Maritime Transport
Obligations Concerned: National Treatment (Article 9.3 and 10.3)

Performance Requirements (Article 10.7)

Local Presence (Article 9.6)

Senior Management and Boards of Directors (Article 10.8)

Description: Cross-Border Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to maritime cabotage services and offshore transport services. 23-[73]

Existing Measures: Navigation Act 1912 (Cth) supported by Migration Act 1958 (Cth), Customs Act 1901 (Cth), Workplace Relations Act 1996 (Cth), Seafarers’ Compensation and Rehabilitation Act 1992 (Cth), Occupational Health and Safety (Maritime Industry) Act 1993 (Cth), Shipping Registration Act 1981 (Cth) and Income Tax Assessment Act 1936 (Cth)

Sector: Maritime
Obligations Concerned: National Treatment (Article 10.3)
Description: Investment

Australia reserves the right to adopt or maintain any measure with respect to the registration of vessels in Australia.

Existing Measures:  

Sector: Transport
Obligations Concerned: National Treatment (Article 10.3)

Senior Management and Boards of Directors (Article 10.8)

Description: Investment

Australia reserves the right to adopt or maintain any measure with respect to investment in federal leased airports.

Existing Measures: Airports Act 1996 (Cth)

Airports (Ownership-Interests in Shares) Regulations 1996 (Cth)

Airports Regulations 1997 (Cth)


Sector: All
Obligations Concerned: Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)
Description: Cross-Border Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to the service suppliers or investors of non-Parties under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement. 23-[74]

Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to the service suppliers or investors of non-Parties under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving:

(a) aviation;

(b) fisheries; or

(c) maritime matters, including salvage.

Existing Measures:  

Sector: All Sectors
Obligations

Concerned:

Market Access (Article 9.5)
Description: Investment and Cross-Border Trade in Services
  Australia reserves the right to adopt or maintain any measure relating to Article 9.5, except for the following sectors and sub-sectors subject to the limitations and conditions listed below:

Legal services:

(1) and (2) None.

(3) None for legal advisory and representational services in domestic law (host-country law). For legal advisory services in foreign law and international law and (in relation to foreign and international law only) legal arbitration and conciliation/mediation services, natural persons practising foreign law may only join a local law firm as a consultant and may not enter into partnership with or employ local lawyers in South Australia.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Accounting, auditing and bookkeeping services:

(1) and (2) None.

(3) Only natural persons may be registered as auditors and liquidators.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Taxation services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Architectural services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Engineering services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Integrated engineering services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Urban planning and landscape architectural services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Dental services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Veterinary services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Computer and related services (excluding measures relating to content covered by CPC 844 and 849):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Research and Development services on social sciences and humanities:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Real Estate Services: involving owned or leased property; on a fee or contract basis:

(1) and (2) Commercial presence required.

(3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Rental/leasing services without operators: relating to ships (excludes cabotage, intrastate and offshore trades); relating to aircraft; relating to other transport equipment; relating to other machinery and equipment:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Advertising services (covers services by advertising agencies in creating and placing advertising in periodicals, newspapers, radio and television for clients; outdoor advertising; media representation i.e. sale of time and space for various media; distribution and delivery of advertising material or samples. Does not include production or broadcast/screening of advertisements for radio, television or cinema):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Market research and public opinion polling services; management consulting services; services related to management consulting (excludes arbitration and conciliation services); technical testing and analysis services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Services incidental to agriculture, hunting and forestry. (Covers provision of advice and guidance relating to crop and livestock management on consultancy basis. Includes specialised consultancy services only, related to forestry activities, timber evaluation, forest management or planning. Does not include logging.):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Services incidental to fishing. (Consists of specialised consultancy services only, related to marine or freshwater fisheries, fish hatchery services. Does not include fishing.):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Services incidental to mining and site preparation work for mining:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Services incidental to manufacturing:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Services incidental to energy distribution. (Covers consultancy services related to the transmission and distribution on a fee or contract basis of electricity, gaseous fuels and steam and hot water to household, industrial, commercial and other users.):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Placement and supply services of personnel:

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Investigation and security services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Related scientific and technical consulting services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Building-cleaning services:

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Photographic services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Convention services. (Activities of establishments engaged in provision of planning, organising, managing and marketing services for conventions and similar events (including catering and beverage services)):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Telephone answering services, duplicating services, translation and interpretation services, mailing list compilation and mailing services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Interior design services. (Specialised consultancy services related to the post-construction design and fitting out of interior living and working spaces. Includes purchase of necessary goods.):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Voice telephone services; packet-switched data transmission services; circuit-switched data transmission services; telex services; telegraph services; facsimile services; private leased circuit services; digital cellular services; paging services; personal communications services; trunked radio system services; mobile data services (excluding services covered by the Broadcasting Services Act 1992 (Cth)):

(1) and (2) None.

(3) An entity holding a new carrier licence must be a public body or a constitutional corporation under Australian law or a partnership where each partner is a constitutional corporation under Australian law.

Aggregate foreign equity in Telstra Corporation Limited (Telstra) is restricted to no more than 35 per cent of shares of Telstra. Individual or associated group foreign investment in Telstra is restricted to no more than five per cent of shares.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Electronic mail; voice mail; on-line information and data base retrieval; electronic data interchange; enhanced/value-added facsimile services, including store and retrieve; code and protocol conversion:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

General construction work for buildings; general construction work for civil engineering; installation and assembly work; building completion and finishing work; other:

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Commission agents’ services; wholesale trade services; franchising:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Retailing services. (Extends to inventory management of goods, assembling, sorting and grading of goods, breaking bulk, re-distribution and delivery services for retailing. Does not cover dispensing of pharmaceuticals):

(1) No commitments except for mail order.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Secondary education services (covers general as well as technical and vocational education at the secondary level in private institutions); higher education services (covers provision of private tertiary education services including at university level); other education services (covers English-language tuition):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Wastewater management (this covers removal, treatment and disposal of household, commercial and industrial sewage and other waste waters including tank emptying and cleaning, monitoring, removal and treatment of solid wastes):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Waste management (this covers hazardous and non-hazardous waste collection, treatment and disposal (including incineration, composting and landfill); sweeping and snow removal, and other sanitation services):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Protection of ambient air and climate (this covers services at power stations or industrial complexes to remove air pollutions; monitoring of mobile emissions and implementation of control systems or reduction programs):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Remediation and cleanup of soil and water (this covers cleaning-up systems in situ or mobile, emergency response, clean-up and longer-term abatement of spills and natural disasters; and rehabilitation programs, eg recovery of mining sites, including monitoring):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Noise and vibration abatement (this covers monitoring programs, and installation of noise reduction systems and screens):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Protection of biodiversity and landscape (this covers ecology and habitat protection and promotion of forests and promoting sustainable forestry):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Other environmental and ancillary services (this covers other environment protection services, including services related to environmental impact assessment):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Other human health services. (Covers podiatry and chiropody services. Includes podiatry services carried out in health clinics, and in residential health facilities other than hospitals, as well as in own consulting rooms, patients’ homes or elsewhere.):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Hotels and restaurants:

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Travel agencies and tour operator services:

(1) Commercial presence required.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Tourist guide services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

News agency services; sporting services and other recreational services (covers recreation park and beach services):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Maritime transport:

International transport (freight and passengers) not including cabotage and offshore transport:

(1) None for liner shipping or for bulk, tramp and other international shipping, including international passenger transportation.

(2) None.

(3) Establishment of registered company for the purpose of operating a fleet under the national flag of Australia: nationality requirements for ownership and registration of vessels as defined by the Shipping Registration Act 1981 (Cth).

None for other forms of commercial presence for the supply of international maritime transport services.

(4) No commitments for ships crews or key shore personnel, except as indicated in the Temporary Entry for Business Persons Chapter.

International rental of vessels with crew (less cabotage and offshore transport):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Maritime auxiliary services (International rental of vessels with crew, less cabotage and offshore transport):

(1), (2) and (3) None

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Maritime cargo handling services:

(1) No commitments.

(2) None.

(3) Licences/concessions are granted by port authorities.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter. In addition there is a requirement for shore labour to undertake loading and unloading of ships under the Navigation Act 1912 (Cth).

Storage and warehousing services:

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Maritime freight forwarding services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Customs clearance services:

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Preshipment inspection; maritime agency services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Air transport:

Ground handling services: airport operation services (excluding cargo handling); cargo handling (air transport sector only); other supporting services for air transport (excludes airport and terminal firefighting services):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Maintenance and repair of aircraft. (Covers establishments mainly engaged in periodic maintenance and repair (routine and emergency) of airframes (including wings, doors, control surfaces) avionics, engines and engine components, hydraulics, pressurisation and electrical systems and landing gear. Includes painting, other fuselage surface treatments and repair of flight-deck (and other) transparencies. Further includes rotary and glider aircraft):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Computer reservation systems (CRS). (Activities of establishments engaged in providing and maintaining computer reservation to other enterprises engaged in the provision of travel agency services, including transport and accommodation booking, tour and travel wholesaling/retailing – to establishments engaged in providing reservation services (such as travel agencies etc). CRS services related to air carriers include the provision of information on air carrier schedules, space availability and tariffs.):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Selling and marketing of air transport services (defined as in paragraph 6(b) of the GATS Annex on Air Transport Services, except that the aspects of “marketing” covered by this commitment are limited to market research, advertising and distribution):

(1) None, except commercial presence required for services covered by travel agencies and tour operator services.

No commitments for retailing services except for mail order.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Rail transport services: freight transportation; pushing and towing services; and supporting services for rail transport services:

(1) and (2) None.

(3) Below track: most rail-track networks in Australia are government owned although much is leased to private operators. There are no restrictions on the right to establish new networks but access to public land may not be guaranteed.

Above track (rail transport services (such as trains) that operate over the rail-track infrastructure): none except that access to rail infrastructure is allocated under pro-competitive principles for safety, efficiency and the long term interests of users.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Road transport services:

Passenger transportation, excluding regular urban bus services:

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Freight transportation; rental of commercial vehicles with operator:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Pipeline transport: transportation of fuels; transportation of other goods:

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Services auxiliary to all modes of transport: storage and warehouse services, excluding maritime (extending to cover distribution centre services and materials handling and equipment services such as container station and depot services (excluding maritime)):

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Freight transport agency services, excluding maritime (extending to cover customs agency services and load scheduling services (excluding maritime)):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Other supporting and auxiliary transport services, excluding maritime (extending to cover container leasing and rental services (excluding maritime)):

(1), (2) and (3) None.

(4) No commitments, except as indicated in the Temporary Entry for Business Persons Chapter.

Annex II

Schedule of Chile

Sector: All Sectors
Sub-Sector:  
Industrial

Classification:

 
ObligationsConcerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Description: Investment

Chile reserves the right to adopt or maintain any measure relating to the ownership or control of land within five kilometers of the coastline that is used for agricultural activities. Such measure could include a requirement that the majority of each class of stock of a Chilean juridical person that seeks to own or control such land be held by Chilean persons or by persons residing in Chile for 183 days or more per year.

Existing Measures: Decree Law 1939, Official Gazette, November 10, 1977, Rules for acquisition, administration and disposal of State owned assets, Title I (Decreto Ley 1939, Diario Oficial, noviembre 10, 1977, Normas sobre adquisición, administración y disposición de bienes del Estado, Título I)

Sector: All Sectors
Sub-Sector:  
Industrial

Classification:

 
Obligations

Concerned:

National Treatment (Article 10.3)

Senior Management and Boards of Directors (Article 10.8)

Description: Investment

In the transfer or disposal of any interest in stock or asset held in an existing state enterprise or governmental entity, Chile reserves the right to prohibit or impose limitations on the ownership of said interest or asset and on the right of foreign investors or their investments to control any State company created thereby or investments made by the same. In connection with any such transfer or disposal, Chile may adopt or maintain any measure related to the nationality of senior management and members of the board of directors.

A “State company” shall mean any company owned or controlled by Chile by means of an interest share in the ownership thereof, and it shall include any company created after the entry into force of this Agreement for the sole purpose of selling or disposing of its interest share in the capital or assets of an existing state enterprise or governmental entity.

Existing Measures:  

Sector: All Sectors
Sub-Sector:  
IndustrialClassification:  
ObligationsConcerned: Most-Favoured-Nation Treatment

(Articles 9.4 and 10.4)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force on, or signed prior to, the date of entry into force of this Agreement.

Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries under any international agreement in force or signed after the date of entry into force of this Agreement involving:

(a) aviation;
(b) fisheries; or
(c) maritime matters, including salvage.

Existing Measures:  

Sector: Communications
Sub-Sector: One Way Satellite Broadcasting of Digital Telecommunication Services, whether these involve Direct Home Television Broadcasting, Direct Broadcasting of Television Services and Direct Audio Broadcasting; Supplementary Telecommunication Services.
Industrial

Classification:

 
Obligations

Concerned:

National Treatment (Article 9.3)

Most-Favoured-Nation Treatment (Article 9.4)

Local Presence (Article 9.6)

Description: Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure related to cross-border trade in one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services.

Existing

Measures:

Law 18.168, Official Gazette, October 2, 1982, General Telecommunications Law, Titles I, II, III, V and VI (Ley 18.168, Diario Oficial, octubre 2, 1982, Ley General de Telecomunicaciones, Títulos I, II, III, V y VI)

Sector: Communications
Sub-Sector: One Way Satellite Broadcasting of Digital Telecommunication Services, whether these involve Direct Home Television Broadcasting, Direct Broadcasting of Television Services and Direct Audio Broadcasting; Supplementary Telecommunication Services.
Industrial

Classification:

 
Obligations

Concerned:

National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Performance Requirements (Article 10.7)

Senior Management and Boards of Directors (Article 10.8)

Description: Investment

Chile reserves the right to adopt or maintain any measure related to the investors of Australia or to their investments in one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services.

Existing

Measures:

Law 18.168, Official Gazette, October 2, 1982, General Telecommunications Law, Titles I, II, III, V and VI (Ley 18.168, Diario Oficial, octubre 2, 1982, Ley General de Telecomunicaciones, Títulos I, II, III, V y VI)

Sector: Issues Involving Minorities
Sub-Sector:  
Industrial

Classification:

 
Obligations

Concerned:

National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Performance Requirements (Article 10.7)

Senior Management and Boards of Directors (Article 10.8)

Local Presence (Article 9.6)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities.

Existing

Measures:

 

Sector: Issues Involving Minorities
Sub-Sector:  
Industrial

Classification:

 
Obligations

Concerned:

National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Performance Requirements (Article 10.7)

Senior Management and Boards of Directors (Article 10.8)

Local Presence (Article 9.6)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure denying investors of Australia and their investments or service suppliers of Australia any rights or preferences provided to indigenous peoples.

Existing

Measures:

 

Sector: Education
Sub-Sector:  
Industrial

Classification:

CPC 92 Education services
Obligations

Concerned:

National Treatment (Article 9.3)

Most-Favoured-Nation Treatment (Article 9.4)

Local Presence (Article 9.6)

Description: Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure relating to natural persons who supply educational services, including teachers and auxiliary personnel supplying educational services in elementary education, kindergarten, pre-school, special education, primary and high school education, professional, technical, and university education, including in educational establishments of any kind as well as sponsors of educational establishments, schools, lyceums, academies, training centres, professional and technical institutes and/or universities.

This non-conforming measure does not apply to the supply of services related to second-language training, corporate, business, and industrial training and skill upgrading, which include consulting services relating to technical support, advice, curriculum and program development in education.

Existing

Measures:

 

Sector: Government Finances
Sub-Sector:  
Industrial

Classification:

CPC 91112 Financial and fiscal services
Obligations

Concerned:

National Treatment (Article 10.3)
Description: Investment

Chile reserves the right to adopt or maintain any measure related to the acquisition, sale or disposal by Australian nationals of bonds, treasury securities or any other type of debt instruments issued by the Central Bank of Chile (Banco Central de Chile) or the Government of Chile. This non-conforming measure is not intended to affect the rights of Australian financial institutions (banks) established in Chile to acquire, sell or dispose of such instruments when required for the purposes of regulatory capital.

Existing

Measures:

 

Sector: Fisheries
Sub-Sector: Fishing-Related Activities
Industrial

Classification:

CPC 882 Services incidental to fishing

CPC 04 Fish and other fishing products

Obligations

Concerned:

National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to control the activities of foreign fishing, including fish landing, first landing of fish processed at sea and access to Chilean ports (port privileges).

Chile reserves the right to control the use of beaches, land adjacent to beaches (terrenos de playas), water-columns (porciones de agua) and sea-bed lots (fondos marinos) for the issuance of maritime concessions. For greater certainty, “maritime concessions” do not cover aquaculture.

Existing

Measures:

Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I, II, III, IV and V (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación Títulos I, II, III, IV y V)

D.F.L. 340, Official Gazette, April 6, 1960, about Maritime Concessions (D.F.L. 340, Diario Oficial, abril 6, 1960, sobre Concesiones Marítimas)

Supreme Decree 660, Official Gazette, November 28, 1988, Maritime Concession Act (Decreto Supremo 660, Diario Oficial, noviembre 28, 1988, Reglamento de Concesiones Marítimas)

Supreme Decree 123 of the Ministry of Economic Affairs, Development and Reconstruction, Vice-Ministry of Fishing, Official Gazette, August 23, 2004, On Use of Ports (Decreto Supremo 123 del Ministerio de Economía, Fomento y Reconstrucción, Subsecretaría de Pesca, Diario Oficial, agosto 23, 2004, Sobre Uso de Puertos)


Sector: Cultural Industries
Sub-Sector:  
Industrial

Classification:

 
Obligations

Concerned:

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)
Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries under any existing or future bilateral or multilateral international agreement with respect to cultural industries, such as audiovisual cooperation agreements. For greater certainty, for the purposes of this non-conforming measure, government supported subsidy programs for the promotion of cultural activities are not subject to the limitations or obligations of this Agreement.

“Cultural industries” means persons engaged in any of the following activities:

(a) publication, distribution, or sale of books, magazines, periodical publications, or printed or electronic newspapers, excluding the printing and typesetting of any of the foregoing;

(b) production, distribution, sale, or display of recordings of movies or videos;

(c) production, distribution, sale, or display of music recordings in audio or video format;

(d) production, distribution, or sale of printed music scores or scores readable by machines; or

(e) radiobroadcasts aimed at the public in general, as well as all radio, television and cable television-related activities, satellite programming services and broadcasting networks.

Existing

Measures:

 

Sector: Social Services
Sub-Sector:  
Industrial

Classification:

CPC 913 Compulsory social security services

CPC 92 Education services

CPC 93 Health and social services

Obligations

Concerned:

National Treatment (Articles 9.3 and 10.3)

Most-Favoured-Nation Treatment (Articles 9.4 and 10.4)

Performance Requirements (Article 10.7)

Senior Management and Boards of Directors (Article 10.8)

Local Presence (Article 9.6)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure with respect to the supply of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for reasons of public interest: income security or insurance, social security or insurance, social welfare, public education, public training, health care and child care.

Existing

Measures:

 

Sector: Environmental Services
Sub-Sector:  
Industrial

Classification:

CPC 94 Sewage and refuse disposal, sanitation and other environmental protection services
Obligations

Concerned:

National Treatment (Article 9.3)

Most-Favoured-Nation Treatment (Article 9.4)

Local Presence (Article 9.6)

Description: Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure imposing the requirement that the production and distribution of drinking water, the collection and disposal of waste water and sanitation services, such as sewage systems, waste disposal and waste water treatment may only be provided by juridical persons incorporated under Chilean law or created in accordance with the requirements established by Chilean law.

This non-conforming measure shall not apply to consultancy services retained by the said juridical persons.

Existing

Measures:

 

Sector: Construction Services
Sub-Sector:  
Industrial

Classification:

CPC 51 Construction work

CPC 52 Constructions

Obligations

Concerned:

National Treatment (Article 9.3)

Local Presence (Article 9.6)

Description: Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure with respect to the supply of construction services by foreign juridical persons or legal entities imposing requirements of residence, registration and/or any other form of local presence, or imposing the obligation of giving financial security for work as a condition for the supply of construction services.

Existing

Measures:

 

Sector All Sectors
Obligations

Concerned:

Market Access (Article 9.5)
Description Investment and Cross-Border Trade in Services
  Chile reserves the right to adopt or maintain any measure relating to Article 9.5, except for the following sectors and sub-sectors subject to the limitations and conditions listed below:

Legal services:

(1) and (3) None, except in the case of receivers in bankruptcy (síndicos de quiebra) who must be duly authorised by the Minister of Justice, and they can only work in the place where they reside.

(2) None

(4) No commitments, except as indicated in Labour Code restriction.

Accounting, auditing and bookkeeping services:

(1) and (3) None, except the external auditors of financial institutions must be inscribed in the Register of External Auditors of the Superintendencia de Bancos e Instituciones Financieras and in the Superintendencia de Valores y Seguros. Only firms legally incorporated in Chile as partnerships (sociedades de personas) or associations (asociaciones), and whose main line of business is auditing services, may be inscribed in the Register.

(2) None

(4) No commitments, except as indicated in Labour Code restriction.

Taxation services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Architectural services:

(1), (2) and (3) None

(4) No commitments, except as indicated in Labour Code restriction.

Engineering services:

(1), (2) and (3) None

(4) No commitments, except as indicated in Labour Code restriction.

Integrated engineering services:

(1) No commitments.

(2) None

(3) No commitments.

(4) No commitments, except as indicated in Labour Code restriction.

Veterinary services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Services provided by midwives, nurses, physiotherapists and

paramedical personnel:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Computer and related services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Research and Development services on natural sciences:

(1), (3) None except: The Directorate of Borders and Frontiers may stipulate that an expedition include one or more representatives of relevant Chilean activities. These representatives would participate in and learn about the studies and their scope.

(2) None

(4) No commitments, except as indicated in Labour Code restriction.

Research and Development services on social sciences and humanities, Interdisciplinary Research and Development services:

(1), (2) and (3) None

(4) No commitments, except as indicated in Labour Code restriction.

Real Estate services: involving owned or leased property or on a fee or contract basis:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Rental/leasing services without crew/operators, related to vessels, aircraft, any other transport equipment, and other machinery and equipment:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Advertising services, market research and public opinion polling services, management consulting services, services related to management consulting, technical testing and analysis services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Services related to agriculture, hunting and forestry:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Services related to mining, placement and supply services of personnel, investigation and security services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Maintenance and repair of equipment (not including vessels, aircraft, or other transport equipment), building-cleaning services, photographic services, packing services, and convention services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Printing and publishing services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Post-secondary technical and vocational education services and adult education services n.e.c.:

(1), (2) None.

(3) No commitments.

(4) No commitments, except as indicated in Labour Code Restriction.

National or international long-distance telecommunications services:

(1), (2), (3), and (4) Chile reserves the right to adopt or maintain any measure that is not inconsistent with

Chile’s obligations under Article XVI of GATS.

Local basic telecommunication services and networks, intermediate telecommunications services, supplementary telecommunications services and limited telecommunications services:

(1), (2), and (3) A concession granted by means of a Decreto Supremo issued by the Ministerio de Transportes y Telecomunicaciones shall be required for the installation, operation and exploitation of public and intermediary telecommunications services in Chilean territory. Only juridical persons organised under the Chilean law shall be eligible for such concessions.

An official decision issued by the Subsecretaría de Telecomunicaciones 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 Subsecretaría de Telecomunicaciones and non-alteration of the essential technical features of networks or of the permissible technological or 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 Ministerio de Transporte y Telecomunicaciones.

(4) No commitments, except as indicated in Labour Code restriction.

Commission agents services, wholesale trade services, retailing services, franchising and other distribution:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Hotels and restaurants (including catering), travel agencies and tour operators services and tourist guide services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Entertainment services (including theatre, live bands and circuit services), news agencies services, libraries, archives, museums, and other cultural services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Sporting and other recreational services, excluding gambling and betting services:

(1) (2), and (3) None, except that a specific type of legal entity may be required for sporting organisations that develop professional activities. In addition, (a) it is not permitted to participate with more than one team in the same category of a sport competition; (b) specific regulations may be established on equity ownership in sporting companies; and (c) minimal capital requirements may be imposed.

(4) No commitments, except as indicated in Labour Code restriction.

Road Transport: freight transportation, rental of commercial vehicles with operator; maintenance and repair of road transport equipment; supporting services for road transport services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Services auxiliary to all transport: cargo handling services; storage and warehouse services; freight transport agency services:

(1), (2), and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Pipeline transport: transportation of fuels and other goods:

(1), (2), and (3) None, except that the service has to be supplied by juridical persons established under Chilean law and the supply of the service may be subject to a concession on a national treatment basis.

(4) No commitments, except as indicated in Labour Code restriction.

Aircraft repair and maintenance services:

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Annex III

Schedule of Australia

Non-Conforming Measures of Australia with respect to Financial Services

Introductory Note for the Schedule of Australia

1. The Schedule of Australia to Annex III sets out:

(a) headnotes that limit or clarify the commitments of Australia with respect to the obligations described in subparagraphs (b) and (c);

(b) in Section 1, pursuant to Article 12.10.1 (Non-Conforming Measures – Financial Services), the existing measures of Australia that do not conform with some or all of the obligations imposed by:

(i) Article 12.3 (National Treatment – Financial Services);

(ii) Article 12.4 (Most-Favoured-Nation Treatment – Financial Services);

(iii) Article 12.5 (Market Access for Financial Institutions– Financial Services);

(iv) Article 12.6 (Cross-Border Trade – Financial Services); or

(v) Article 12.9 (Senior Management and Boards of Directors – Financial Services); and

(c) in Section 2, pursuant to Article 12.10.2 (Non-Conforming Measures – Financial Services), the specific sectors, sub-sectors or activities for which Australia may maintain existing, or adopt new or more restrictive, measures that do not conform with the obligations imposed by:

(i) Article 12.3 (National Treatment);

(ii) Article 12.4 (Most-Favoured-Nation Treatment);

(iii) Article 12.5 (Market Access for Financial Institutions);

(iv) Article 12.6 (Cross-Border Trade); or

(v) Article 12.9 (Senior Management and Boards of Directors);

2. Each entry in Section 1 as described in subparagraph 1(b) sets out the following elements:

(a) Sector refers to the general sector for which the entry is made;

(b) Obligations Concerned specifies the obligation(s) referred to in paragraph 1(b) that, pursuant to Article 12.10.1 (Non-Conforming Measures – Financial Services), do not apply to the listed measure(s);

(c) Level of Government indicates the level of government maintaining the listed measure(s);

(d) Source of Measure identifies the laws, regulations or other measures that are the source of the non-conforming measure for which the entry is made. A measure cited in the Source of Measure element:

(i) means the measure as amended, continued or renewed as of the date of entry into force of this Agreement, and

(ii) includes any subordinate measure adopted or maintained hereunder; and

(e) Description sets out the non-conforming aspects of the measure for which the entry is made.

3. Each entry in Section 2 as described in subparagraph 1(c) sets out the following elements:

(a) Sector refers to the general sector for which the entry is made;

(b) Obligations Concerned specifies the obligation(s) referred to in paragraph 1(c) that, pursuant to Article 12.10.2 (Non-Conforming Measures – Financial Services), do not apply to the sectors, sub-sectors, or activities listed in the entry;

(c) Level of Government indicates the level of government maintaining the listed measure(s);and

(d) Description sets out the scope of the sectors, subsectors, or activities covered by the entry.

4. For entries in Section 1, in accordance with Article 12.10.1(a) (Non-Conforming Measures – Financial Services), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the measures identified in the Description element of that entry except to the extent the measure identified in the Description element is inconsistent with a Specific Commitment in Annex 12-B (Annex on Specific Commitments, Section C Portfolio Management).

5. For entries in Section 2, in accordance with Article 12.10.2, the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, sub-sectors and activities identified in the Description element of that entry.

6. Where Australia maintains a measure that requires that a service supplier be a citizen, permanent resident or resident of its territory as a condition to the provision of a service in its territory, a listing for that measure taken in Annex III with respect to Articles 12.3, 12.4, 12.5 or 12.6 shall operate as a non-conforming measure with respect to Articles 10.3 (National Treatment, Investment Chapter), 10.4 (Most-Favoured-Nation Treatment, Investment Chapter) and Article 10.7 (Performance Requirements, Investment Chapter), to the extent of that measure.

Annex III

Non-Conforming Measures of Australia with Respect to Financial Services

Headnotes

1. Commitments under this Chapter are undertaken subject to the limitations and conditions set forth in these headnotes and the Schedule below.

2. To clarify Australia’s commitment with respect to Article 12.5 (Market Access for Financial Institutions – Financial Services), juridical persons supplying financial services and constituted under the laws of Australia are subject to non-discriminatory limitations on juridical form. 23-[75]

3. A foreign bank that operates a representative office in Australia is not permitted to undertake any banking business, including advertising for deposits, in Australia. Such a representative office is only permitted to act as a liaison point. Such requirements are consistent with Article 12.3 (National Treatment – Financial Services).

Annex III

Schedule of Australia

Section 1

Sector: Financial Services
Obligations Concerned: National Treatment (Article 12.3)
Level of Government Central
Source of Measure: Banking Act 1959 (Cth)

Payment Systems (Regulation) Act 1998 (Cth)

Description: A branch of a foreign bank that is authorised as a deposit taking institution in Australia (foreign ADI) is not permitted to accept initial deposits (and other funds) from individuals and non-corporate institutions of less than $A250,000.

Sector:

Financial Services
Obligations Concerned: Senior Management and Boards of Directors (Article 12.9)
Level of Government: Central
Source of Measure: Corporations Act 2001(Cth)
Description: At least two of the directors of a public company must be ordinarily resident in Australia.

Sector: Financial Services
Obligations Concerned: National Treatment (Article 12.3)

Most-Favoured-Nation Treatment (Article 12.4)

Cross-Border Trade (Article 12.6)

Senior Management and Boards of Directors (Article 12.9)

Level of Government Regional
Source of Measure: All existing non-conforming measures at the regional level of government.
Description: All existing non-conforming measures at the regional level of government.

Sector: Financial Services
Obligations Concerned: National Treatment (Article 12.3)
Level of Government Central
Source of Measure: Commonwealth Banks Act 1959 (Cth)

AIDC Sale Act 1997 (Cth)

Australian Industry Development Corporation Act 1970 (Cth)

Description: Liabilities of the Commonwealth Bank and the Australian Industry Development Corporation (AIDC), previously Commonwealth Government-owned, are covered by transitional guarantee arrangements.

Sector Financial services
Sub-sector Life insurance services
Level of Government Central
Obligations Concerned: National Treatment (Article 12.3)
Source of Measure: Life Insurance Act 1995 (Cth)

Description: Approval of non-resident life insurers is restricted to subsidiaries incorporated under Australian law.

Annex III

Schedule of Australia

Section 2

Sector Financial Services
Obligations

Concerned:

Market Access for Financial Institutions (Article 12.5)
Description Australia reserves the right to adopt or maintain any measure relating to Article 12.5 (Market Access for Financial Institutions), except for the following sectors and sub-sectors subject to the limitations and conditions listed below:
Subsector Limitation on Market Access
A. Insurance and insurance‑related services Approval of non‑resident life insurers is restricted to subsidiaries.
  Most State and Territory Governments maintain restrictions, by way of monopolies or licensing provisions and associated controls on premiums and other terms of policies, in the following areas of insurance:

Compulsory Third Party Motor Vehicle Accident: VIC, WA, TAS, NT (monopolies); NSW, QLD, SA, ACT (licensing, premiums/policy terms).

Workers Compensation: SA, VIC, QLD (monopolies); NSW, WA, TAS (licensing, premiums/policy terms).

Comcare is the monopoly provider of workers' compensation insurance to Commonwealth Government employees.

B. Banking and other financial services (excluding insurance) A foreign bank located overseas is able to offer its services to Australian enterprises, but is not allowed to raise deposit funds in Australia or undertake business within Australia unless it is an authorised bank (or establishes a money market corporation, subsidiary, etc.). Foreign banks located overseas may, however, raise funds in Australia through the issue of debt securities provided that those securities are offered/traded in parcels of not less than $A500,000 and the securities and any information memoranda clearly state the issuing bank is not authorised under the Banking Act 1959 (Cth) in Australia.
  Foreign banks may undertake banking operations in Australia through locally incorporated subsidiaries and/or an authorised branch. However, a branch may not accept “retail” deposits. A foreign bank wishing to accept “retail” deposits must seek authorisation as a locally incorporated subsidiary for that purpose. Foreign bank branches may accept deposits (and other funds) in any amount from incorporated entities, non‑residents and their own employees. Deposits (and other funds) may only be accepted from other sources where the initial deposit (or other funds) is greater than $A250,000. Deposit‑taking outside of this is considered to be “retail” banking business.
  A number of State and Territory Governments operate central financing authorities through which the Government's wholly or partly‑owned statutory authorities and business enterprises are obliged to borrow (and in some cases invest) their funds, or otherwise obtain certain financial services:

SA ‑ South Australian Government Financing Authority,
Local Government Finance Authority of South Australia

TAS ‑ Tascorp

NSW ‑ NSW Treasury Corporation

VIC ‑ Treasury Corporation of Victoria

QLD ‑ Queensland Treasury Corporation,

Queensland Investment Corporation

NT ‑ Northern Territory Treasury Corporation

WA ‑ Western Australian Treasury Corporation

  To obtain an Australian market licence, an applicant must be a body corporate.

The responsible entity of a registered managed investment scheme must be a public company that holds an Australian financial services licence authorising it to operate a managed investment scheme.


Sector: Financial Services
Obligations Concerned: National Treatment (Article 12.3)
Level of Government Central and regional
Description: Australia reserves the right to adopt or maintain any measure23-[76] with respect to the guarantee by government of government-owned entities, including guarantees related to the privatisation of such entities, which may conduct financial operations.

Annex III

Schedule of Chile

Non-Conforming Measures of Chile with respect to Financial Services

Introductory Note for the Schedule of Chile

1. The Schedule of Chile to Annex III sets out:

(a) in the headnotes, the limitations or clarifications to the commitments of Chile with respect to the obligations described in Sections 1 and 2;

(b) in Section 1, pursuant to Article 12.10.1 (Non-Conforming Measures), the existing measures of Chile that are not subject to some or all of the obligations imposed by:

(i) Article 12.3 (National Treatment – Financial Services);

(ii) Article 12.4 (Most-Favoured-Nation Treatment – Financial Services);

(iii) Article 12.5 (Market Access for Financial Institutions – Financial Services);

(iv) Article 12.6 (Cross-Border Trade – Financial Services); or

(iv) Article 12.9 (Senior Management and Boards of Directors – Financial Services); and

(c) in Section 2, pursuant to Article 12.10.2 (Non-Conforming Measures), the existing and future measures of Chile that are not subject to some or all of the obligations imposed by:

(i) Article 12.3 (National Treatment – Financial Services);

(ii) Article 12.4 (Most-Favoured-Nation Treatment – Financial Services);

(iii) Article 12.5 (Market Access for Financial Institutions – Financial Services);

(iv) Article 12.6 (Cross-Border Trade – Financial Services); or

(v) Article 12.9 (Senior Management and Boards of Directors – Financial Services).

2. Each entry in Section 1 as described in subparagraph 1(b) sets out the following elements:

(a) Sector to which the non-conforming measure applies;

(b) Subsector of the financial services sector to which the non-conforming measure applies;

(c) Obligations Concerned specifies the obligation(s) referred to in subparagraph 1(b) that, pursuant to Article 12.10.1, do not apply to the listed measures;

(d) Measures identifies the laws, regulations or other measures for which the entry is made. A measure cited in the Measures element:

(i) means the measure as amended, continued or renewed as of the date of entry into force of this Agreement, and

(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure;

(e) Description provides a general, non-binding description of the Measures.

3. Each entry in Section 2 as described in subparagraph 1(c) sets out the following elements:

(a) Sector to which the non-conforming measure applies or will apply;

(b) Subsector of the financial services sector to which the non-conforming measure applies or will apply;

(c) Obligations Concerned specifies the obligation(s) referred to in subparagraph 1(c) that, pursuant to Article 12.10.2, do not or will not apply to the listed measures;

(d) Measures, as applicable, identifies the laws, regulations or other measures for which the entry is made. A measure cited in the Measures element:

(i) means the measure as amended, continued or renewed as of the date of entry into force of this Agreement, and

(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure;

(e) Description provides a general, non-binding description of the Measures.

4. In accordance with Article 12.10.1(a) and 12.10.2, the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the laws, regulations or other measures identified in the Measure or in the Description element of that entry.

Headnotes

1. Commitments in the financial services sector under this Agreement are undertaken subject to the limitations and conditions set forth in these headnotes and the schedule below.

2. Juridical persons supplying financial services and constituted under the laws of Chile are subject to non-discriminatory limitations on juridical form.23-[77]

Annex III

Schedule of Chile

Section 1 

Sector: Financial Services
Subsector: Banking and Other Financial Services
Obligations Concerned: Senior Management and Boards of Directors (Article 12.9)
Measures: Ley N° 18.045, Official Gazette of October 22, 1981, Ley de Mercado de Valores, Titles VI and VII, Articles 24, 26 and 27.

 

Description: The directors, administrators, managers or legal representatives of legal entities performing the activities of stockbroker and securities agent must be Chileans or foreigners with a residence permit.

Sector: Financial Services
Subsector: Banking and Other Financial Services
Obligations Concerned: National Treatment (Article 12.3)
Measures: Ley N° 18.657, Official Gazette of September 29, 1987, Ley de Fondos de Inversión de Capital Extranjero, Title II, Article 14.
Description: The capital of a foreign capital investment fund may not be remitted abroad until five years from the date in which the contribution was made.

Sector: Financial Services
Subsector: Banking and other Financial Services
Obligations Concerned: National Treatment (Article 12.3)
Measures: Ley N° 18.045, Official Gazette of October 22, 1981, Ley de Mercado de Valores, Titles VI and VII, Articles 24 and 26.
Description:

 

Natural persons performing the activity of stockbroker and securities agent in Chile must be Chileans or foreigners with a residence permit.

Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Obligations Concerned: Senior Management and Boards of Directors (Article

12.9)

Measures:

 

Decreto con Fuerza de Ley N° 251, Official Gazette of May 22, 1931, Ley de Seguros, Title III, Article 58.

 

Decreto Supremo N° 863 de 1989 del Ministerio de Hacienda, Official Gazette of April 5, 1990, Reglamento de los Auxiliares del Comercio de Seguros, Title I, Article 2, letter c).

Description:

 

Administrators and legal representatives of legal entities performing the activity of insurance brokerage must be Chileans or foreigners with a residence permit.

Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Obligations Concerned: National Treatment (Article 12.3)
Measures: Decreto con Fuerza de Ley N° 251, Official Gazette of May 22, 1931, Ley de Seguros, Title I, Article 16.
Description:

 

Reinsurance brokerage can be performed by foreign reinsurance brokers.  These brokers shall be juridical persons, demonstrate that the entity is legally established in its country of origin and authorised to intermediate risks ceded from abroad, and provide the date that such authorisation was granted.  Such entities shall designate a representative in Chile to represent them with broad powers.  The representative may be subject to summons and must have residence in Chile.

Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Obligations Concerned: Senior Management and Boards of Directors (Article

12.9)

Measures:

 

Decreto con Fuerza de Ley 251, Official Gazette of May 22, 1931, Ley de Seguros, Title III, Article 62.
Description: The administrators and legal representatives of legal entities performing the activity of claim settlement must be Chileans or foreigners with a residence permit.

Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Obligations Concerned: National Treatment (Article 12.3)
Measures: Decreto con Fuerza de Ley N° 251, Official Gazette of May 22, 1931, Ley de Seguros, Title I, Article 20.
Description: In the case of the types of insurance covered in Decreto Ley 3.500, involving the cession of reinsurance to foreign reinsurers, the deduction for reinsurance cannot exceed 40 per cent of the total of the technical reserves associated with those types of insurance or a higher percentage if set by the Superintendencia de Valores y Seguros.

Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Obligations Concerned: National Treatment (Article 12.3)
Measures:

 

Decreto con Fuerza de Ley N° 251, Official Gazette of May 22, 1931, Ley de Seguros, Title I, Articles 58 and 62.

Decreto Supremo N° 863 de 1989 del Ministerio de Hacienda, Official Gazette of April 5, 1990, Reglamento de los Auxiliares del Comercio de Seguros, Title I, Article 2, letter c).

Description:

 

Natural persons performing the activity of insurance brokerage and claim settlement must be Chileans or foreigners with a residence permit.

Annex III

Schedule of Chile

Section 2

Sector: Financial Services
Subsector: All Subsectors
Obligations Concerned: Market Access for Financial Institutions (Article 12.5)
Description: Chile reserves the right to adopt measures that restrict or require specific types of juridical form or establishment, such as subsidiaries, with respect to financial conglomerates, including the entities forming part of it.

Sector: Financial Services
Subsector: All Subsectors
Obligations Concerned: Cross-Border Trade (Article 12.6)
Measures:

 

Ley 18.840, Official Gazette of October 10, 1989, Ley Orgánica Constitucional del Banco Central de Chile, Title III.
Description:

 

The purchase of financial services, by persons located in the territory of Chile and its nationals wherever located, from financial services suppliers of Australia shall be subject to the exchange rate regulations adopted or maintained by the Banco Central de Chile in accordance with its Organic Law (Ley 18.840).

Sector: Financial Services
Subsector: All Subsectors
Obligations Concerned: National Treatment (Article 12.3)

Senior Management and Boards of Directors (Article12.9)

Description: In the transfer or disposal of any interest in stock or asset held in an existing state enterprise or governmental entity, Chile reserves the right to prohibit or impose limitations on the ownership of said interest or asset, and on the right of foreign investors or their investment to control any State company created thereby or investments made by the same.  In connection with any such transfer or disposal, Chile may adopt or maintain any measure related to the nationality of senior management and member of the board of directors.

A “State company”shall mean any company owned or controlled by Chile by means of an interest share in the ownership thereof, and it shall include any company created after the entry into force of this Agreement for the sole purpose of selling or disposing of its interest share in the capital or assets of an existing state enterprise governmental entity.


Sector: Financial Services
Subsector: Banking and other Financial Services
Obligations Concerned: National Treatment (Article 12.3)
Measures: Decreto Ley N° 2.079, Official Gazette of January 18, 1978, Ley Orgánica del Banco del Estado de Chile.

Decreto Ley N° 1.263, Official Gazette of November 28, 1975, Decreto Ley Orgánico de Administración Financiera del Estado, Article 6.

Description: Chile may grant advantages or exclusive rights to Banco del Estado de Chile, a Chilean state owned bank, including but not limited to the following: the management of the Chilean government financial resources is made only through deposits in the Cuenta Única Fiscal and in its subsidiary accounts, all of which must be kept at Banco del Estado de Chile.

Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Obligations Concerned: Cross-Border Trade (Article 12.6)
Measures: Decreto con Fuerza de Ley N° 251, Official Gazette of May 22, 1931, Ley de Seguros, Title I, Article 4.
Description:

 

All types of insurance that Chilean law makes or may make compulsory, and all insurance related to social security, cannot be contracted outside Chile.  This non-conforming measure shall not apply to the types of insurance included in Chile’s commitments listed in subparagraphs 2(a)(i) and 2(a)(ii) of Annex 12-A (Cross-Border Trade).

Sector: Financial Services
Subsector: Social Services
Obligations Concerned: National Treatment (Article 12.3)
Most-Favoured-Nation Treatment (Article 12.4)
Market Access for Financial Institutions (Article 12.5)
Cross-Border Trade (Article 12.6)
Senior Management and Boards of Directors (Article 2.9
Description:

 

Chile reserves the right to adopt or maintain any measure with respect to the provision of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for reasons of public interest: income security or insurance, social security or insurance, social welfare, public education, public training, health care and child care.

Sector:

 

Financial Services
Subsector:

 

Insurance and Insurance-related Services
Obligations Concerned:

 

Market Access for Financial Institutions (Article 12.5)
Description:

 

Chile reserves the right to adopt or maintain any measure with respect to Article 12.5 (Market Access for Financial Institutions), except for the following sectors, sub-sectors and financial services defined in accordance with the relevant Chilean legislation, subject to the terms, limitations and conditions specified below.

All-subsectors
1. The Chilean financial services sector is partially compartmentalised, that is to say the institutions, domestic and foreign, authorised to operate as banks may not participate directly in the insurance and securities business and vice versa. However, subject to authorisation from the Superintendencia de Bancos e Instituciones Financieras, SBIF (Superintendency of Banks and Financial Institutions), domestic and foreign banks operating in Chile may set up subsidiaries, with their own and separate capital, to supply other financial services in addition to their main line of business. The main business of banks is accepting or receiving money from the public on a regular basis and granting money credits represented by securities or commercial paper or any other credit instrument.

2. The term “CPC” means the Provisional Central Product Classification (Statistical paper Series M, No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, (1991)).

Subsector Limitation on Market Access
a) Banking services:
a.1) Core banking services and bank operations:

Acceptance of deposits

(includes only current bank accounts (cuentas corrientes bancarias), sight deposits, time deposits, savings accounts, financial instruments with repurchase agreements, and warranty deposits or surety bonds);

Credit granting

(includes only ordinary loans, consumer credit, loans in letters of credit, mortgage loans, mortgage loans in letters of credit, purchase of financial instruments with resale agreements, credit for issue of bank surety bonds or other types of financing, issue and negotiation of letters of credit for imports and exports, issue and confirmation of stand-by letters of credit);

Purchase of publicly-offered securities (includes only purchase of bonds, purchase of letters of credit, subscription and placement as agents of shares, bonds and letters of credit (underwriting));

Issue and operation of credit cards (CPC 81133) (includes only credit cards issued in Chile);

Issue and operation of debit cards;

Travellers' cheques;

Transfer of funds (bank drafts);

Discounting or acquisition of bills of exchange and promissory notes;

Endorsement and guarantee of third party liabilities in Chilean currency and foreign currency;

Securities custody;

Exchange market operations carried out according to the regulations issued or to be issued by the Central Bank of Chile;

Operations with derivatives authorised or to be authorised by the Central Bank of Chile

(includes only forwards and swaps of currency and interest rate); and

Acceptance and execution of fiduciary operations.

Foreign banking institutions must be banking companies (sociedades bancarias) legally constituted in their country of origin and must put up the capital required by Chilean law.

Foreign banking institutions may only operate:

(i) through shareholdings in Chilean banks established as corporations in Chile;

(ii) by becoming established as a corporation in Chile;

(iii) as branches of foreign corporations, in which case the legal personality in the country of origin is recognised. For the purposes of foreign bank branch operations in Chile, the capital effectively invested in Chile is considered, and not that of the main office. The increases of capital or reserves that do not come from capitalisation of other reserves, will have the same treatment as the initial capital and reserves. In the transactions between a branch and its main office abroad, both will be considered as independent entities. No foreign bank will be able to invoke rights derived from its nationality regarding transactions that its branch may carry out in Chile.

No national or foreign, natural or legal, person may acquire directly or through third parties shares in a bank which, alone or added to the shares such a person already possesses, represent more than 10 per cent of the bank's capital without having first obtained the authorisation of the SBIF. In addition, the partners or shareholders of a financial institution may not transfer a percentage of rights or shares in their company in excess of 10 per cent without having obtained authorisation from the SBIF.

a.2) Complementary banking services: The supply of financial services that complement core banking services may be provided directly by these institutions, with prior authorisation from the SBIF, or through subsidiaries which the SBIF shall determine.
Financial leasing (CPC 81120)

(includes only leasing contracts for goods acquired at the client's request, i.e. they cannot acquire goods in order to stock them and offer them for leasing).

Financial leasing services are regarded as complementary banking services and, consequently, the SBIF is empowered to extend or restrict the operation of the financial leasing services which these institutions may offer, and these institutions may only offer the services expressly authorised by the SBIF.
Advisory and other auxiliary financial services (CPC 8133)

(includes only services indicated in the banking sector in this schedule).

None.
Factoring. Factoring services are regarded as complementary banking services and, consequently, the SBIF is empowered to extend or restrict the operation of the financial factoring services which these institutions may offer, and these institutions may only offer the services expressly authorised by the SBIF.
Management of funds of third parties performed by:

(in no circumstances does this include management of pension funds and voluntary pension savings plans (Planes de Ahorro Previsional Voluntario))

i) Mutual funds management companies;

ii) Investment funds management companies;

iii) Foreign capital investment funds management companies; and

iv) General funds management companies.

The management of funds of third parties is regarded as a complementary banking service and, therefore, in the case of banks can only be offered through subsidiaries as established in the General Banking Act and with prior authorisation of both the SBIF and the Superintendencia deValores y Seguros, SVS(Securities and Insurance Commission).
Intermediation of publicly offered securities (CPC 81321). Banks can provide the services of intermediation of publicly offered securities through subsidiaries as established in the General Banking Act, either as securities agents and/or as stockbrokers. The description of agents and stockbrokers in horizontal note 1 of the securities services section of this schedule apply in this case. Except for the requirement to enrol in the relevant register of the SVS, in order to provide these services bank subsidiaries must comply with the securities laws and the norms issued by the SVS. Prior authorisation from both the SVS and the SBIF is required.
Securitisation. Banks can provide the services of securitisation through subsidiaries as established in the General Banking Act. The description of securitisation corporations in horizontal note 9 of the securities services section of this schedule apply in this case. In order to provide these services, bank subsidiaries must comply with the securities laws and the norms issued by the SVS. Prior authorisation from both the SVS and the SBIF is required.
a.3) Representative offices of foreign banks. The SBIF may authorise foreign banks to maintain representative offices acting as business agents for their main offices, and shall exercise upon them the same inspection authority granted upon the Superintendent by the Ley General de Bancos with respect to banking enterprises. Under no circumstances shall these representative offices have the right to perform any acts which pertain to the banking business. The authorisation given by the SBIF to representative offices is subject to revocation if its maintenance is found to be inconvenient, as expressed in the Ley General de Bancos. This is not intended to limit any remedies that the investor affected by the revocation of the authorisation may have under Chilean law to challenge the measure.

b) Insurance and insurance-related services:
1. In Chile, the insurance business is divided into two groups: the first group comprises companies that insure goods or property (patrimonio) against the risk of loss or damage, while the second comprises those that cover personal risks or guarantee, within or at the end of a certain term, a capital sum, a paid-up policy or an income for the insured or his/her beneficiaries. The same insurance company may not be constituted in such a way as to cover both categories of risk.

2. Credit insurance companies, even though classified in the first group, must be established as legal entities with the sole purpose of covering this type of risk, i.e. loss of or damage to the goods or property (patrimonio) of the insured as a result of the non-payment of a money debt or loan, being also permitted to cover guarantee and fidelity risks.

Subsector Limitation on Market Access
Insurance:

Sale of direct life insurance

(does not include insurance related to the social security system) (CPC 81211), and

Sale of direct general insurance (CPC 8129, except for CPC 81299)

(excluding the Instituciones de Salud Previsional, ISAPRES (social security health institutions) i.e. legal persons set up for the purpose of providing health benefits to persons who opt to become members and financed through the statutory contribution of a percentage of taxable income fixed by law or a higher amount, as the case may be. It also excludes the Fondo Nacional de Salud, FONASA (National Health Fund), a public agency financed by the government and the statutory contribution of a percentage of taxable income fixed by law, which is jointly responsible for paying benefits under the optional health scheme which persons not members of an ISAPRE may join. Does not include sale of insurance for international maritime transport, international commercial aviation and goods in international transit).

Insurance services can be provided only by insurance companies established in Chile as corporations or as branches of foreign corporations with the sole purpose of developing this line of business, either direct life insurance or direct general insurance. In the case of general credit insurance (81296), they must be established as corporations or branches with the sole purpose of covering this type of risk.

Insurance corporations can be legally constituted only in accordance with the provisions of the law on corporations.

For the purposes of foreign insurance branch operations in Chile, the capital and reserves (patrimonio) effectively invested in Chile is considered, and not that of the main office. Such capital and reserves (patrimonio) must be effectively transferred and converted into domestic currency in conformity with any of the systems authorised by Law or by the Banco Central de Chile. The increases in capital that do not come from the capitalisation of reserves will have the same treatment as the initial capital. In transactions between a branch and its main office or other related companies abroad they will be considered as independent entities. No foreign insurance company will be able to invoke rights derived from its nationality regarding transactions that its branch may carry out in Chile.

Insurance may be issued directly or through insurance brokers who, to engage in that activity, must be enrolled in the Register maintained by the SVS, and must satisfy the requirements of the law.

Sale of insurance for international maritime transport, international commercial aviation and goods in international transit

(includes goods transported, the vehicle transporting the goods and any civil responsibility deriving therefrom. Does not include national transport (cabotage)).

Insurance services for international maritime transport, international commercial aviation and goods in international transit may be offered by insurance corporations constituted in Chile and which have the sole purpose of developing the business of direct general insurance.
Insurance brokers

(excludes insurance for international maritime transport, international commercial aviation and goods in international transit).

Must be enrolled in the Register maintained by the SV Sand fulfil the requirements established by the SVS. Only legal persons legally constituted in Chile for this specific purpose may provide this service.
Brokers of insurance for international maritime transport, international commercial aviation and goods in international transit

(includes goods transported, the vehicle transporting the goods and any civil responsibility deriving therefrom. Does not include national transport (cabotage)).

Must be enrolled in the Register maintained by the SVS and fulfil the requirements established by the SVS. Only legal persons legally constituted in Chile for this specific purpose may provide this service.
Reinsurance and retrocession

(includes reinsurance brokers).

Reinsurance services are provided by reinsurance corporations and branches established in Chile in accordance with the provisions of the law on corporations and authorised by the SVS. Insurance corporations may also provide reinsurance services as a complement to their insurance business if their articles of association so allow.

Reinsurance services may also be provided by foreign reinsurers and foreign reinsurance brokers enrolled in the Register maintained by the SVS.

Claim settlement services. Claim settlement services may be offered directly by insurance companies established in Chile or by legal persons constituted in Chile and registered with the SVS.
Auxiliary insurance services

(includes only consultancy, actuarial services and risk assessment).

Auxiliary insurance services may only be provided by legal persons constituted in Chile and registered with the SVS.

c) Securities services:
1. Publicly offered securities may be traded by legal persons established under Chilean law, whose sole purpose is securities brokerage, either as members of a stock exchange (stockbrokers) or outside the stock exchange (securities agents), and these institutions must be registered with the Superintendencia de Valores y Seguros, SVS(Securities and Insurance Commission). However, only stockbrokers may trade shares or their derivatives (subscription options) on the stock exchange. Non-share securities may be traded by stockbrokers or securities agents registered with the SVS.

2. The purpose of financial portfolio management is to diversify investments, on behalf of third parties, over a range of instruments and may be provided by securities traders (stockbrokers and securities agents) as a complementary activity for their clients.

3. Publicly offered securities risk rating services are provided by rating agencies established for the sole purpose of rating publicly offered securities, and they must be enrolled in the Registro de Entidades Clasificadoras de Riesgo (Register of Risk Rating Agencies) maintained by the SVS. They are inspected and controlled by the SVS. On the other hand, the inspection of rating agencies with respect to the rating of securities issued by banks and financial companies is the responsibility of the Superintendencia de Bancos e Instituciones Financieras, SBIF (Superintendency of Banks and Financial Institutions).

4. Securities custody consists of the physical safe-keeping of securities’ certificates and may be undertaken by securities intermediaries (stockbrokers and securities agents) as an activity complementary to their sole purpose. It may also be undertaken by entities that provide depository and custodial services for securities which should be established as special purpose corporations (sociedades anónimas especiales) with the sole purpose of receiving in deposit publicly offered securities from entities authorised by law and to facilitate operations for the transfer of such securities (centralised securities depositories, depósitos centralizados de valores).

5. Financial advisory services, which involve giving financial advice on financing alternatives, investment appraisal, investment possibilities and debt rescheduling strategies may be undertaken by securities intermediaries (stockbrokers and securities agents) as an activity complementary to their sole purpose.

6. Securities services that may be provided by banking institutions either directly or through subsidiaries are listed in the banking services sector of this Schedule and are excluded from the securities services section of this Schedule.

7. The service of managing third parties' funds may be undertaken by the following:

(a) Mutual funds management companies are those corporations whose sole purpose is the management of mutual funds;

(b) Investment funds management companies are those corporations whose sole purpose is the management of investment funds. Without prejudice to the above, those corporations may also manage foreign capital investment funds;

(c) Foreign capital investment funds management companies are those corporations whose sole purpose is the management of foreign capital investment funds. The capital brought into those funds may be remitted abroad only after five years from the date on which the capital contribution was made; and

(d) General funds management companies are those corporations created for the purpose of managing mutual funds, investment funds, foreign capital investment funds, housing funds or any other fund supervised by the SVS.

8. The service of clearing houses for stock exchange derivative products may be undertaken by corporations established in Chile with that sole purpose. They have the purpose of being the counterpart for all purchases and sales of contracts for futures, securities options and others of similar nature authorised by the SVS.

9. Securitisation services may only be provided by legal persons whose sole purpose is to provide such services. These entities must be registered with the SVS.

10.- Stock exchanges are entities established for the sole purpose of furnishing its members with the installations needed to efficiently engage in securities trading by continuous public auction methods, in the premises they provide, and to perform the other securities intermediation activities allowed by the law.

11.- Cattle and agricultural commodities exchanges are special purpose corporations (sociedades anónimas especiales) that have as sole purpose to provide its members with the premises and infrastructure needed to efficiently engage in products trading by continuous public auction methods, in the premises provided, ensuring the existence of an equitable, competitive and transparent market.

Subsector Limitation on Market Access
Stock exchanges. Stock exchanges must be established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Intermediation of publicly offered securities, except shares (CPC 81321)

Subscription and placement as agents (underwriting).

Brokerage activities must be supplied through a legal person established in Chile and require prior enrolment in the Register of stockbrokers and securities agents kept by the SVS. In addition to the legal requirement concerning capital and reserves (patrimonio), the SVS may impose more stringent non-discriminatory requirements regarding economic solvency on the intermediaries, taking into account the nature of their operations, the amounts involved, the type of instrument negotiated and the category of intermediaries to which they apply.
Intermediation of publicly offered shares of

corporations (CPC 81321) (includes subscription and placement as agents, underwriting).

In order to trade on the stock exchange, intermediaries (stockbrokers) must be constituted as a legal person in Chile. They must acquire a share in the respective stock exchange and be accepted as members of this exchange. Prior enrolment in the Register of stockbrokers and securities agents maintained by the SVS is required for brokerage activities. In addition to the legal requirement concerning capital and reserves (patrimonio), the SVS may impose more stringent non-discriminatory requirements regarding economic solvency on intermediaries, taking into account the nature of their operations, the amounts involved, the type of instrument negotiated, and the category of intermediaries to which they apply.
Operations in stock exchange derivatives authorised by the Superintendencia de Valores y Seguros (Securities and Insurance Commission)

(includes only dollar and interest rate futures, and options on shares. Shares must fulfill the requirements established by the respective clearing house, cámara de compensación).

In order to trade on the stock exchange, intermediaries (stockbrokers) must be constituted as legal persons in Chile. They must acquire a share in their respective stock exchange and be accepted as members of this exchange. Prior enrolment in the Register of stockbrokers and securities agents maintained by the SVS is required for brokerage activities. In addition to the legal requirement concerning capital and reserves (patrimonio), the SVS may impose more stringent non-discriminatory requirements regarding economic solvency on intermediaries, taking into account the nature of their operations, the amounts involved, the type of instrument negotiated and the category of intermediaries to which they apply.
Trading in metals on the stock exchange (includes only gold and silver). Trading in gold and silver may be carried out by stockbrokers on their own account and for third parties in the stock exchange in accordance with stock exchange regulations. In order to trade on the stock exchange, intermediaries (stockbrokers) must be constituted as legal persons in Chile. They must acquire a share in their respective stock exchange and be accepted as members of this exchange. Prior enrolment in the Register of stockbrokers and securities agents maintained by the SVS is required for brokerage activities. In addition to the legal requirement concerning capital and reserves (patrimonio), the SVS may impose more stringent non-discriminatory requirements regarding economic solvency on intermediaries, taking into account the nature of their operations, the amounts involved, the type of instrument negotiated and the category of intermediaries to which they apply.
Securities risk rating

(relates solely to rating or giving an opinion on publicly offered securities).

They must be established in Chile as a partnership (sociedad de personas). One of the specific requirements to be fulfilled is that not less than 60 per cent of the company's capital must be held by the principal partners (natural or legal persons in this line of business holding a minimum of five per cent of the membership rights in the rating agency). They must enrol in the register of risk rating agents kept by the SVS.
Securities custody undertaken by securities

intermediaries (CPC 81319)

(does not include the services offered by suppliers who combine custody, securities clearance and settlement (securities depositories, depósitos de valores)).

For securities custody, intermediaries (stockbrokers and agents) must be constituted in Chile as a legal person. In addition to the legal requirement concerning capital and reserves (patrimonio), the SVS may impose more stringent non-discriminatory requirements regarding economic solvency on intermediaries, taking into account the nature of their operations, the amounts involved, the type of instrument negotiated and the category of intermediaries to which they apply.
Custody undertaken by entities for the deposit and custody of securities. Securities deposit and custody entities must be constituted in Chile as corporations set up for that sole purpose and require authorisation from the SVS.
Financial advisory services supplied by securities intermediaries (CPC 81332). Financial advisory services supplied by securities intermediaries established as legal persons in Chile require prior enrolment in the Register of stockbrokers and securities agents maintained by the SVS. In addition to the legal requirement concerning capital and reserves (patrimonio), the SVS may impose more stringent non-discriminatory provisions regarding economic solvency on the intermediaries, taking into account the nature of their operations, the amounts involved, the type of instrument negotiated and the category of intermediaries to which they apply.
Financial portfolio management supplied by security intermediaries

(this does not under any circumstances include the following: management of mutual funds, foreign capital investment funds, investment funds and pension funds).

Financial portfolio management services supplied by securities intermediaries established as legal persons in Chile require prior enrolment in the Register of stockbrokers and securities agents maintained by the SVS. In addition to the legal requirement concerning capital and reserves (patrimonio), the SVS may impose more stringent non-discriminatory provisions regarding economic solvency on the intermediaries, taking into account the nature of their operations, the amounts involved, the type of instrument negotiated and the category of intermediaries to which they apply.
Management of funds of third parties performed by:

(in no circumstances does this include management of pension funds and voluntary pension savings plans (Planes de Ahorro Previsional Voluntario))

i) Mutual funds management companies;

ii) Investment funds management companies;

iii) Foreign capital investment funds management companies; and

iv) General funds management companies.

The Fund management service may be carried out by corporations set up for that sole purpose or by general funds management companies, constituted in Chile, with authorisation from the SVS. Foreign capital investment funds may also be managed by investment funds management companies.
Service of clearing houses for derivatives (contracts for futures and options on securities). Clearing houses for futures contracts and options on securities must be established in Chile as corporations for that sole purpose and with an authorisation from the SVS. They may only be constituted by stock exchanges and their stockbrokers.
Cattle and agricultural commodities exchanges. Cattle and agricultural commodities exchanges must be established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Cattle and agricultural commodities brokerage. The activity of cattle and agricultural commodities broker must be performed by legal entities established under Chilean law.
Service of clearing houses of futures and options on cattle and agricultural commodities. Clearing houses of futures and options on cattle and agricultural commodities must be established as corporations for that sole purpose and with an authorisation from the SVS.
General deposit warehouses (warrants)

(corresponds to merchandise warehousing services accompanied by the issue of a deposit certificate and a chattel mortgage receipt (vale de prenda)).

Provision of warrant services may be carried out only by legal persons duly constituted in Chile who have the supply of warrant services as their sole purpose.
Securities issue and registration services (CPC 81322)(does not include deposit and custody of securities services). None
d) Other financial services:
Provision and transfer of financial information and financial data processing and related software by suppliers of other financial services. None.
Exchange market operations carried out according to the regulations issued or to be issued by the Central Bank of Chile. Only banks, juridical persons, stockbrokers and securities agents, all of which must be established in Chile as legal entities, can operate in the Formal Exchange Market. Juridical persons, stockbrokers and securities agents require prior authorisation from the Banco Central de Chile to operate in the Formal Exchange Market.
Management of mortgage loans as established in Decreto con Fuerza de Ley N° 251, Ley de Seguros, Title V. Mortgage Loans Management Agencies must be established as corporations (sociedades anónimas) under Chilean law. For greater certainty, according to Decreto con Fuerza de Ley N° 251, Ley de Seguros, Title V, Article 88.

23-[63]The term “foreign person” has the meaning set out in the Foreign Acquisitions and Takeovers Act 1975 (Cth).
23-[64]The term “substantial interest” has the meaning set out in the Foreign Acquisitions and Takeovers Act 1975 (Cth).
23-[65]For the purposes of this entry, a person is taken to be “ordinarily resident”in Australia if: (a) the person has his or her home in Australia; or (b) Australia is the country of his or her permanent abode even though he or she is temporarily absent from Australia. However, the person is taken not to be ordinarily resident in Australia if he or she resides in Australia for a special or temporary purpose only.
23-[66] For the purposes of this non-conforming measure, a foreign vessel is one that does not meet the definition of an Australian boat, that is, an Australian-flagged boat (not owned by a foreign resident) or a boat owned by an Australian resident or corporation and built, and whose operations are based, in Australia.
23-[67] The levy charged will be in accordance with the Foreign Fishing Licenses Levy Act 1991 (Cth) or any amendments thereto.
23-[68] Customs brokers may complete customs formalities required by the relevant customs legislation on behalf of the owners of goods prior to their import into or export from Australia. Such formalities include the requirement to complete the import or export entries whereby owners notify the goods being exported or imported, the duty and other taxes payable and whether or not the appropriate permits have been obtained.
23-[69] For the purposes of this entry, “significant foreign shareholding” means a holding of voting shares in CSL in which a foreign person has a relevant interest, if the foreign person has relevant interests in at least five per cent of the voting shares in CSL.
23-[70] “Australian urban land”means land situated in Australia that is not used wholly or exclusively for carrying on a business of primary production.
23-[71] “Creative arts” include: the performing arts – including theatre, dance and music – visual arts and craft, literature, film, television, video, radio, creative on-line content, indigenous traditional practice and contemporary cultural expression, and digital interactive media and hybrid arts work which uses new technologies to transcend discrete artform divisions.
23-[72] “Cultural heritage” includes: ethnological, archaeological, historical, literary, artistic, scientific or technological moveable or built heritage, including the collections which are documented, preserved and exhibited by museums, galleries, libraries, archives and other heritage collecting institutions.
23-[73] For the purposes of this non-conforming measure, “cabotage” is defined as the transportation of passengers or goods between a port located in Australia and another port located in Australia and traffic originating and terminating in the same port located in Australia. “Offshore transport” refers to shipping services involving the transportation of passengers or goods between a port located in Australia and any location associated with or incidental to the exploration or exploitation of natural resources of the continental shelf of Australia, the seabed of the Australian coastal sea and the subsoil of that seabed.
23-[74] For the avoidance of doubt, this includes measures adopted or maintained under any existing or future protocol to the Australia New Zealand Closer Economic Relations - Trade Agreement (ANZCERTA) done at Canberra on March 28, 1983.
23-[75] For example, partnerships and sole proprietorships are generally not acceptable juridical forms for authorised depository institutions in Australia. This headnote is not itself intended to affect, or otherwise limit, a choice by a financial institution of the other Party between branches or subsidiaries.
[76] That is, measures that would be excluded from the application of Chapter 12 (Financial Services) under Article 12.2.3(b), except for the application of Australia’s policy on competitive neutrality which in general allows competition and avoids providing a net competitive advantage to an entity by virtue of its public sector ownership.
23-[77] For example, partnerships (sociedades de personas) are generally not acceptable juridical forms for financial institutions in Chile. This headnote is not in and of itself intended to affect, or otherwise limit, a choice by a financial institution of the other Party between branches or subsidiaries.