CHILE Law and Practice Contributed by: Ricardo Rozas, Max Morgan and Stefano Perretta, Jorquiera & Rozas Abogados
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 opinion from an independent court official is also requested 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 International Commercial Arbitration (Law No 19,971) – based on the UNCITRAL Model Law – was passed in 2004. Article 35 of that law regu - lates the recognition and enforcement of foreign arbitral awards, and Article 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 attachments or goods retention, to protect the outcome of a foreign arbitration award. This cri - terion has already been tested in the context of international arbitration proceedings relating to a shipping dispute. 6.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction Chilean procedural regulations are silent on this matter. However, when an arrest is decreed as a prejudicial precautionary measure (ie, a meas - ure to secure the outcome of a subsequent sub - stantive action), it would be possible to arrest to
obtain security and then pursue 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 4.12 Dam- ages in the Event of Wrongful Arrest of a Ves- sel ). However, this is an option that has to be further tested in Chilean courts. 6.5 Domestic Arbitration Institutes As pointed out in 1.1 Domestic Laws Estab- lishing 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. Although Chile has well-known arbitration cen - tres (including the Santiago Arbitration and Mediation Centre (CAM)) that provide maritime arbitrators, most cases are handled through ad hoc arbitration. 6.6 Remedies Where Proceedings Are Commenced in Breach of Foreign Jurisdiction or Arbitration Clauses Under Chilean law, the defendant can oppose a specific defence based on lack of jurisdiction. 7. Ship-Owners’ Income Tax Relief 7.1 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
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