CHILE Law and Practice Contributed by: Ricardo Rozas, Max Morgan and Stefano Perretta, JJR Abogados
7.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction Chilean procedural regulations are silent on this mat - ter. However, when an arrest is decreed as a prejudicial precautionary measure (ie, a measure to secure the outcome of a subsequent substantive action), it would be possible to arrest to obtain security and then pur - sue proceedings on the merits elsewhere. Note that the procedural obligations established must be met – namely filing the petitioner’s complaint requesting that the decreed arrest remains in force for a period that, in principle, is ten days but that may be extended for up to a total of 30 days provided there is sound basis for doing so (see 5.12 Damages in the Event of Wrongful Arrest of a Vessel ). However, this is an option that has As pointed out in 1.1 Domestic Laws Establishing the Authorities of the Maritime and Shipping Courts , Article 1203 of the Code of Commerce establishes the general principle that the resolution of all maritime disputes, including those relating to marine insurance, is subject to mandatory arbitration. to be further tested in Chilean courts. 7.5 Domestic Arbitration Institutes Although Chile has well-known arbitration centres (including the Santiago Arbitration and Mediation Centre (CAM)) that provide maritime arbitrators, most cases are handled through ad hoc arbitration. 7.6 Remedies Where Proceedings Are Commenced in Breach of Foreign Jurisdiction or Arbitration Clauses Under Chilean law, the defendant can oppose a spe - cific defence based on lack of jurisdiction. 8. Ship-Owners’ Income Tax Relief 8.1 Exemptions or Tax Reliefs on the Income of Ship-Owners’ Companies The Chilean Merchant Navy Law (Decree Law 3059/79) contains certain special tax regulations, subsidies and tax cuts. Among others, owners that carry out cargo and passenger transport from abroad to Chile, and vice versa, can recover VAT charged when purchas - ing goods or using services intended for their activity.
• the party against whom enforcement is sought was duly served with process, except that the party may still be able to allege that, for other reasons, it was prevented from making a defence; and • they are not subject to appeals or further review in the country of origin. Procedure for Enforcement of a Foreign Judgment A duly legalised copy of the judgment – officially trans - lated into Spanish, if necessary – must be presented to the Chilean Supreme Court to begin the exequatur process. In the case of an arbitral award, its authentic - ity must be certified by attestation of a high court of the originating jurisdiction. Notice of the enforcement request must be served on the party against whom it is sought. That party must respond within 15 days (which may be extended depending on where the party is domiciled). An opin - ion from an independent court official is also request - ed by the Supreme Court. The Supreme Court considers the matter in a hearing at which the parties may make oral statements. After enforcement is allowed, the judgment must be presented to the competent civil court to commence an executive proceeding (under which the defendant’s assets can be foreclosed, if applicable). In respect of foreign arbitral awards, the Law on Inter - national Commercial Arbitration (Law No 19,971) – based on the UNCITRAL Model Law – was passed in 2004. Article 35 of that law regulates the recognition and enforcement of foreign arbitral awards, and Arti - cle 36 lists the defences that can be asserted against enforcement and regulates orders of stay. In addition, Article 9 of said law makes it possible to request from a local court any of the interim measures set forth under Chilean procedural regulations, such as attach - ments or goods retention, to protect the outcome of a foreign arbitration award. This criterion has already been tested in the context of international arbitration proceedings relating to a shipping dispute.
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