On February 1, 2025, the EU-Chile Interim Trade Agreement (ITA 2024) came into force, updating the previous 2002 Association Agreement. This new framework eliminates most of the remaining trade tariffs and modernizes the rules of origin to facilitate trade between both parties. Through a more flexible and simplified system, businesses will be able to access tariff preferences with fewer bureaucratic hurdles.

The guidance document on rules of origin provides detailed instructions on how products can qualify for preferential treatment under the ITA. This analysis covers the key changes, the implementation of new rules, and their impact on exporters and importers on both sides of the Atlantic.


1. Rules of Origin in ITA 2024: Key Changes

- Rules of origin determine whether a product is considered as originating from Chile or the EU, a fundamental requirement for benefiting from tariff elimination. Under the new ITA, the methods for certifying origin have been modernized and simplified:

A) Self-Certification by the Exporter:

- The previous system of EUR.1 certificates and invoice declarations is replaced by a statement on origin made directly by the exporter.
- EU exporters must use their REX (Registered Exporter System) number, while Chilean exporters will use their Rol Único Tributario (RUT).

B) Importer’s Knowledge:

- Importers can certify tariff preference based on information and documents in their possession, without requiring a statement from the exporter.

C) Product-Specific Rules of Origin:

- The criteria have been harmonized and made more flexible for many products, facilitating certification and access to trade benefits.
- Sectors such as agriculture, chemicals, machinery, and automobiles will have clearer and less restrictive rules.

D) Statements of Origin for Multiple Shipments:

- An exporter can issue a single statement of origin for multiple shipments of identical products over a period of up to 12 months.

E) Accumulation of Origin:

- Bilateral accumulation schemes (use of materials from both parties to qualify as originating) are maintained.
- The possibility of extended accumulation with third countries with trade agreements with the EU and Chile is introduced, although it is not yet in force.


2. Benefits for Businesses and Exporters

Cost Reduction and Simplification of Procedures

One of the key objectives of ITA is to reduce the bureaucratic burden on companies, making exports and imports easier. The elimination of the EUR.1 certificate and the possibility of self-certification will speed up customs processes, saving time and money for exporters.

Greater Predictability and Legal Security

Companies will be able to claim tariff preferences for up to two years after importation, allowing them to correct errors and adjust business strategies. Additionally, transparency and verification measures are reinforced, ensuring compliance with rules of origin without excessive bureaucracy.

Facilitation of Agricultural and Manufacturing Trade

Key sectors such as agriculture and manufacturing will benefit from more flexible rules. For example, in plant-based products, the origin criterion will be simpler by recognizing as originating any product grown in Chile or the EU, even if imported seeds are used.


3. Declaration and Registration Procedure

How to Claim Preferential Treatment

To obtain tariff benefits, importers can submit one of these two documents at customs:

A) Statement on origin issued by the exporter.
B) Importer’s knowledge, which must be supported by sufficient documentation.

The ITA eliminates prior certification by origin customs authorities, allowing exporters and producers to issue their own statements more easily.

Verification and Control

If there are doubts about a product´s origin, customs authorities can request additional information from the importer or exporter. In the case of an official review:

- Exporters must keep records for at least 4 years.
- Importers must keep their documentation for at least 3 years.
- If customs do not receive a satisfactory response, preferential treatment may be denied.


4. Transitional Measures and Retroactive Application

To facilitate the transition between the old agreement and the new ITA, several transitional measures have been implemented:

- Goods shipped before February 1, 2025 can continue to benefit from the previous system (EUR.1 or invoice declaration).
- Products in transit or temporarily stored may adopt the new system of statement on origin.

- Importers have up to two years to request retroactive application of tariff preferences, offering companies greater flexibility in adapting to the new regulatory framework.


5. Economic and Trade Impact

The ITA 2024 is a key step in modernizing trade between the EU and Chile, boosting competitiveness and facilitating commercial exchanges. This agreement is expected to:

- Increase bilateral trade by eliminating barriers and facilitating origin certification.
- Reduce logistical and administrative costs for exporters and importers.
- Enhance investment attractiveness by improving legal security and trade predictability.
- Increase integration with other trade agreements, through a possible extension of origin accumulation with Latin American countries.

The most benefited sectors include manufacturing, agriculture, fisheries, and automotive industries, which will now have clearer and more favorable rules of origin.


Summary

The EU-Chile Interim Trade Agreement (ITA 2024) marks a new phase in trade relations between the two regions, focusing on simplification, digitalization, and trade facilitation. The modernization of rules of origin not only reduces costs and processing times but also offers businesses greater security and flexibility.

With these new rules, the EU and Chile reaffirm their commitment to more agile and efficient trade, benefiting both large exporters and small and medium-sized enterprises seeking to expand in the international market.