What is a free trade zone in Chile?
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A zona franca is a government-designated area where imported goods can be stored, processed and re-exported without paying customs duties or IVA. Chile has two: Zona Franca de Iquique (ZOFRI) in the north and Zona Franca de Punta Arenas in the south. Both provide duty-free storage, manufacturing and distribution capabilities that Interworld Freight manages on behalf of its clients. Goods enter the zone from the port or airport, and Aduanas processes them with no duties or IVA assessed.
What are ZOFRI and Zona Franca de Punta Arenas?
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ZOFRI is Chile's primary free trade zone, in northern Chile near the Peruvian and Bolivian borders. Zona Franca de Punta Arenas is in the southernmost region and serves Patagonia and Antarctic-related commerce. Both offer duty-free storage and processing with Aduanas oversight. ZOFRI in Iquique serves Bolivia, Peru and mining operations in the Atacama region, while Punta Arenas serves Patagonian markets and Antarctic supply routes.
How does duty deferral work in Chile's free trade zones?
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Goods entering a zona franca are not assessed customs duties or 19% IVA while they remain inside. Duties are triggered only when goods are transferred into Chilean customs territory for domestic consumption, and goods re-exported from the zone never incur Chilean import taxes. At that point duty is the general 6% tariff, or 0% for US-origin goods with a valid origin claim under the US-Chile FTA, plus 19% IVA.
Can I store both domestic and imported goods?
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Free trade zones are designed mainly for imported goods under Aduanas control. Domestic goods can enter the zone for export consolidation, but the main duty and tax benefits apply to imported merchandise that has not cleared Chilean customs. Our inventory tracking system keeps accurate stock control of inbound and outbound shipments inside the zone.
How long can I store goods in Chile's free trade zones?
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There is no fixed time limit in ZOFRI or Zona Franca de Punta Arenas. Goods can remain indefinitely as long as they comply with zone regulations and the operator keeps proper documentation with Aduanas. Without a time limit, you decide timing and destination based on demand signals.
Can goods be processed inside the zone?
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Yes. We provide labeling, repackaging, kitting, quality inspection and light assembly inside the free trade zone, so raw materials or components can be transformed before distribution without triggering duty obligations. Our TMS and customs team coordinate the logistics end to end.
What happens when goods are ready for the Chilean market?
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We handle the Aduanas documentation, tariff classification and duty payment so your products clear customs efficiently, with duties and IVA paid only at that point. For commercial imports above US$1,000 FOB, a licensed agente de aduanas files the DIN with the Servicio Nacional de Aduanas.
Why use a free trade zone if Chile already has 33 FTAs?
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Chile's 33 free trade agreements covering 65 economies already offer preferential tariff access to most major markets. The free trade zones add complete duty and IVA elimination: zero customs duties, zero IVA (19%) and no other import taxes on goods that remain in the zone or are re-exported, which means significant cash flow savings for importers managing large inventories. Since the US-Chile FTA took effect in 2004, US-origin goods already enter at 0% duty, so the zone's edge is IVA deferral and re-export flexibility.