Latest updates
New law allows passenger cabotage on foreign cruise vessels
JJR Abogados- Shipping & Transport
- Chile
- 12 June 2019
The Merchant Navy Law, which includes a cabotage reservation system, implies that only Chilean vessels are permitted to provide maritime or fluvial transport services (of cargo or passengers) within Chile or its exclusive economic zone. However, Law 21,138 recently came into force, allowing passenger cabotage on foreign cruise vessels provided that certain conditions are met.
New law increases criminal liability for damage to hydro-biological resources
JJR Abogados- Shipping & Transport
- Chile
- 08 May 2019
Law 21,132 recently came into force and introduced new definitions of criminal offences in connection with marine biological resources, including the exploitation of banned natural resources or products extracted from the seabed and overfishing. In the case of spills that cause damage to hydro-biological resources, shipowners operating in Chile are now subject to greater contingency – not only in terms of administrative penalties, but also in connection with criminal liability.
Change of Supreme Court doctrine regarding limitation periods in employment actions
Porzio Rios Garcia- Employment & Benefits
- Chile
- 13 March 2019
The Supreme Court recently decided a variation on limitation periods for employment actions – the so-called 'content doctrine' – which stresses the nature of relief sought by plaintiffs. However, the doctrine is problematic, as it implicitly extends limitation periods by calculating them from the date of termination of employment and not from the date on which any wrongdoing was committed.
Santiago court holds state agencies liable for negligent protection of trapped miners' occupational safety
Porzio Rios Garcia- Employment & Benefits
- Chile
- 14 November 2018
The Ninth Civil Court of Santiago recently held that three state agencies had been negligent in protecting the occupational safety of 31 trapped miners and ordered the Treasury to pay approximately €101,523 to each miner. In its defence, the state argued that the significant amount spent in rescuing and compensating the miners (approximately €8.63 million) had protected their moral suffering.
Surface landowners versus mining concession holder rights
- Energy & Natural Resources
- Chile
- 12 November 2018
The relationship between surface landowners and mining concession holders in Chile is governed by law, which grants preferential rights to the latter. Mining concession holders may exercise their rights to search for minerals and impose mining easements on landowners. However, in the case of state property, such matters are regulated by a ministerial order.
Courts clarify meaning of 'personal acts' of shipowners
JJR Abogados- Shipping & Transport
- Chile
- 24 October 2018
The owners of a Chilean tugboat constituted a limitation fund to respond to damages suffered by different parties in connection with the sinking of a towed vessel following a salvage and towage operation. The plaintiffs opposed the fund's constitution, arguing that 'personal acts' committed by the tug's owners exempted them from the right to limit liability. The Supreme Court recently rejected the opposition; its decision should provide future certainty regarding the interpretation and scope of shipowners' personal acts.
Companies may continue to offer historical benefits to non-union employees without union consent
Porzio Rios Garcia- Employment & Benefits
- Chile
- 29 August 2018
Following a recent opinion rendered by the Labour Board, companies may continue to extend to non-union employees benefits which they received before they were added to a collective bargaining agreement, because such benefits are not an attribute of the collective bargaining agreement for non-union employees. This new position impedes union interference in the granting of benefits to employees who are not involved in union activity.
Competition Agency blocks Ideal's acquisition of Nutrabien
- Competition & Antitrust
- Chile
- 09 August 2018
The Competition Agency (FNE) recently gave a clear sign to the market by blocking a concentration transaction for the first time since the new merger control system entered into force. The FNE dismissed the efficiencies and mitigation measures raised by the parties, as the risks to competition were too great according to its guidelines.
Pampa Camarones mining project penalised for damage to archaeological site
- Environment & Climate Change
- Chile
- 25 June 2018
The government recently filed a compensation claim for environmental damage against mining company Pampa Camarones. The claim was based on the fact that Pampa Camarones' operations had violated a series of measures that the regional evaluation commission had stipulated to protect a nearby archaeological site. As a result, over 15 hectares of the site were destroyed without the required measures being undertaken to protect its archaeological value.
Nothing is certain but death and taxes: Tax Department considers taxation of cryptocurrencies
- Corporate Tax
- Chile
- 22 June 2018
A taxpayer recently requested a ruling from the Tax Department on the treatment of gains from cryptocurrency transactions for income and value added tax purposes, as cryptocurrencies are not specifically regulated in Chile or recognised as legal tender or foreign currency. The department's analysis reflected the broad definition of 'income' in the Income Tax Act and the fact that there is no specific exemption or favourable treatment given to these specific gains.
Employment liability cannot be avoided by hiring staff through affiliates or related entities
Porzio Rios Garcia- Employment & Benefits
- Chile
- 20 June 2018
When structuring their businesses, companies must keep in mind that employment liability cannot be avoided by hiring personnel through their company affiliates or related entities. Fines may apply if the existence of multiple companies under a common employment management is found to be a scheme to avoid compliance with employment rights (eg, allocating profits in one company but hiring employees in another).
Legal framework for lithium gets recharged
- Energy & Natural Resources
- Chile
- 21 May 2018
Until 1979, the Mining Code 1932 defined the legal regime for lithium. During that period, lithium was treated like any other mineral and could be privately owned without special restrictions. This situation has changed with the enactment of a number of laws. Most recently, the Ministry of Mining's Supreme Decree 64 established special operation contract requirements and conditions for the exploration, exploitation and processing of lithium deposits in the Atacama region.
Conversation recorded by concealed voice recorder accepted as valid evidence
Porzio Rios Garcia- Employment & Benefits
- Chile
- 16 May 2018
Evidence used in employment cases must be obtained in a lawful manner and in accordance with fundamental rights, such as due process. However, a recent Supreme Court decision has fostered debate about the protection of fundamental rights within the context of an employment relationship. The court found that a conversation recorded without consent by a concealed voice recorder at a meeting could be considered valid evidence and did not violate the fundamental rights of the individuals recorded.
INAPI designated as international searching and preliminary examining authority
- Intellectual Property
- Chile
- 07 May 2018
In 2015 the National Institute of Industrial Property (INAPI) was designated as an international searching authority (ISA) and international preliminary examining authority (IPEA) under the Patent Cooperation Treaty. From January 1 2018, the INAPI can issue international search and preliminary examination reports for Chilean applicants and applicants from Latin American and Caribbean countries that have designated the INAPI as their ISA and IPEA.
Supreme Court casts doubt on non-unionised employees' right to collective bargaining
Porzio Rios Garcia- Employment & Benefits
- Chile
- 02 May 2018
The right to collective bargaining for non-unionised employees is a contentious issue following the recent labour reform. The Supreme Court recently decided on constitutional protective action, finding that the Labour Inspectorate need not register a collective agreement with a non-union employee group. Although this has not rendered such agreements illegal, it has increased the uncertainty around them and may discourage them in future.
Navigating choppy waters – new wreck removal provisions introduced
JJR Abogados- Shipping & Transport
- Chile
- 02 May 2018
Law 21,066 recently came into force and amended the Navigation Law in connection with the extraction of sunk or stranded vessels and harmful materials contained therein. The changes strengthen marine environment preservation and navigation safety, and the new faculties granted to the Maritime Authority in respect of ships or craft whose condition poses a risk or danger represent a positive change.
Tax implications for foreign mergers
- Corporate Tax
- Chile
- 06 April 2018
A business group recently requested an advance ruling from the Internal Revenue Service regarding the merger of a Chilean subsidiary with a company resident in a low-tax jurisdiction. The service stated that pursuant to Article 64 of the Tax Code, it will not exercise its assessment authority where it has been effectively proven that the legal effects of a merger in another country will be carried out in accordance with Chilean legislation and that the operation will be carried out under the terms of tax neutrality.
SoE orders permanent closure of Pascua Lama mine
- Environment & Climate Change
- Chile
- 26 March 2018
The Superintendence of the Environment (SoE) recently issued an environmental resolution ordering the permanent cessation of Compañía Minera Nevada (CMN) SpA's Pascua Lama mining project. After having considered the background and evidence provided during the investigative process, the SoE ordered the permanent closure of the mining site based on a number of breaches and imposed a series of fines. CMN SpA has filed a complaint against the resolution.
Technology and innovation support centre inaugurated
- Intellectual Property
- Chile
- 05 March 2018
The National Institute of Industrial Property (INAPI) recently inaugurated its technology and innovation support centre, which was backed by the World Intellectual Property Organisation. The INAPI also recently implemented an advanced electronic signature programme, strengthened security measures to safeguard information and initiated a pilot plan that will enable the institute to become a paperless organisation.
Recognition of salvors' rights to limit liability
JJR Abogados- Shipping & Transport
- Chile
- 28 February 2018
A limitation fund was recently constituted in the context of a salvage and towage operation. The plaintiffs opposed the fund's constitution, arguing that, under Chilean law, salvors are not entitled to limit their liability. The Valparaiso Second Civil Court rejected the opposition and upheld the limitation fund. The decision is one of the most relevant substantive decisions in this regard and should provide future certainty in the safeguarding salvors' rights to limit their liability.
