According to the Guangdong Entry-Exit Inspection and Quarantine Bureau on January 4, the Protocol to upgrade the China-Chile Free Trade Agreement (hereinafter referred to as the "upgraded version") was officially signed in November 2017 and is expected to be implemented within this year. On the basis of the high level of liberalization of goods in the original FTA, the two sides will continue to open their markets wider. The overall proportion of products with zero tariffs will reach about 98 percent, which will be the highest level of openness in China's free trade agreement to date.

After the upgrade takes effect, Chile will immediately remove tariffs on 24 products from China, including home appliances, textiles and clothing, involving China's annual exports to Chile of about US $4 million. The direct reduction of import tariff of relevant products from the current 6% to zero will greatly improve their competitiveness in the Chilean market, help export enterprises to further explore Chile and even the emerging markets in South America, and transform the advantages of the FTA into advantages for enterprises to expand exports.

It is reported that the updated version has optimized the rules of origin and improved the relevant implementation procedures to provide more convenience for enterprises to take advantage of the preferential policies of the China-Chile free trade Agreement. First, the standard of origin is more relaxed. If the change in tariff classification is not met, the standard for "minimal content" of exported products will be relaxed to 10% from 8% of non-original material content; Simplify the wording of "goods of origin", "goods package" and other clauses, and try to be consistent with other existing new agreements. Second, it is more convenient to apply and use the certificate. Allow the reissue and reissue of certificates of origin, breaking the previous limit of 30 days before and after the shipment of goods; When applying for preferential tariffs, goods can be exempted from submitting the transfer certificate issued by the customs of the transit place when meeting the relevant provisions of the "direct transport Rules", so as to solve the difficulty that the customs of the transit place is reluctant to issue the certificate. Allow the use of electronic Certificate of Origin to facilitate the transmission, use and preservation of enterprises, and allow the use of certificate copies for customs clearance. Third, the certificate content is more perfect. Cancel the filling of invoice amount to solve the problem that the bidding enterprise cannot get the amount due to the confidentiality requirements of the third party; Add "WP" standard and modify "P" standard to "WO" to classify and describe the origin of products more accurately.

The China-Chile FTA is the first FTA signed between China and a Latin American country. Since its official implementation in October 2006, it has promoted the rapid development of bilateral economic and trade relations. According to statistics, in 2017, Guangdong Entry-Exit Inspection and Quarantine Bureau issued 54,600 certificates of origin under the China-Chile Free Trade Agreement to enterprises, with the value of visas amounting to 2.182 billion US dollars, which could reduce Chilean import tariffs for enterprises by 131 million US dollars.

In the upgraded version, the 24 products whose tariffs will be reduced to zero immediately involve household appliances, textiles and garments and other advantageous export products from Guangdong, which has great potential for enterprises to take advantage of preferential tariff policies of origin.