How Does It Work

We bought some really nice apples yesterday.  On the bag it says:
U.S. Extra Fancy
Produce of Chile.

I'm sure there is stuff in Canada like this as well but I'm wondering how it works.  Does the country import the fruit and because they do the actual distribution they can put their own country name on it too?  I've just never taken note before.  I guess that's what you do when you're retired.  You read  bags!!

At any rate, they are excellent apples.

Gramma