Hidden costs of importing to Chile: VAT, tariff, storage and delays

You closed the order thinking about the FOB price, and when the cargo arrives, the bill is another story. Duties, port charges, storage, and a fee called *demurrage* that no one explained to you show up. That difference between "what you thought it cost" and "what it ended up costing" is where many companies lose their margin. Let's break down every cost so that none of them takes you by surprise.

1. Tariff (ad valorem duty)

It's calculated on the CIF value (goods + insurance + freight), not on the product price alone. The general tariff is 6%. But if you import from a country with an FTA — China, among others — and present the certificate of origin, it drops to 0%. This is a cost that's often avoidable and goes unclaimed for lack of a document.

2. Import VAT

The 19% applies to the CIF value plus the tariff. It's the heaviest duty in the operation. The good news: if your company files VAT, that 19% is recoverable as a tax credit on your Form 29. In other words, it's a cash-flow cost, not a final one. Planning it well avoids unnecessary cash crunches.

Example structure (CIF value of US$ 10.000, no FTA): 6% tariff = US$ 600; VAT base = US$ 10.600; 19% VAT = US$ 2.014. With a certificate of origin and the FTA, the tariff goes to 0 and the VAT base drops to US$ 10.000.

3. The insurance you "save on" that costs you more

If you don't present an insurance policy at clearance, the National Customs Service (Servicio Nacional de Aduanas) estimates the insurance at around 2% of the FOB value to calculate the duties. That 2% is usually far above the real premium of a cargo insurance policy. The result: not insuring not only leaves you exposed to a claim, it inflates the base on which you pay taxes. Insurance taken out properly is often cheaper than going without it.

4. Port and broker charges

THC (terminal handling), document issuance, customs broker fees. These are amounts that don't show up in the freight rate and must be added to the total cost.

5. Storage and demurrage (*demurrage*): the cost that spirals

This is where the money really leaks. The port gives you a few free days (usually 3 to 7 on ocean imports) to collect the cargo. After that:

• Storage (charged by the terminal) starts running by the day.
• Demurrage (the *demurrage* the shipping line charges for not returning the container on time) also starts running by the day.

These charges climb steadily and, if not managed, can end up exceeding the cost of the international freight itself. The trigger is usually the same: incomplete documentation or a clearance that wasn't ready when the ship arrived.

Where the money leaks (and how to stop it)

The pattern is clear: nearly all hidden costs come from coordinating late or incompletely. Not from bad luck.

Mini-FAQ

Can import VAT be recovered?

Yes, if your company files VAT: it's used as a tax credit on Form 29. It's a cash-flow cost, not a final one.

How many days do I have to collect the cargo before paying storage?

It depends on the terminal and the shipping line, but it's usually 3 to 7 free days on ocean imports. After that, storage and demurrage kick in.

Is *demurrage* negotiable?

Free days are agreed with the shipping line when you book. A good coordinator negotiates them and, above all, has clearance ready so the charge is never triggered.