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You are at the Zona Franca, north of downtown. A law of 1975 authorised it, and it opened on the 12th of September 1977. The idea is old here: Punta Arenas was already a free port from 1868 until the 1910s. While goods are inside the zone they count as if they were abroad, so they are free of the usual duties and taxes. For locals it is a weekend outing: a large shopping centre with a cinema, bowling and even an ice rink, surrounded by warehouses. If you need warm gear before Torres del Paine, this is a good place to look.
Source: Wikipedia en español, «Zona Franca de Punta Arenas». · Decreto Ley 1.055 de 1975, «Autoriza el establecimiento de Zonas Francas en Iquique y Punta Arenas», Biblioteca del Congreso Nacional, LeyChile. · Memoria Chilena (Biblioteca Nacional de Chile), «Punta Arenas y la economía magallánica (1848-1950)». · Mateo Martinic, «La hotelería en el antiguo Magallanes (1870-1950)», Magallania 33(1), 2005. · Chócale, «Zona Franca de Punta Arenas: la historia del corazón comercial del extremo austral de Chile», 13 de septiembre de 2025.