viii) Promotion and implementation of good manufacturing practices;
ix) Criteria for the evaluation of potential damage to the environment by use of goods or services;
x) Analysis of the simplification of procedures for the import requirements of goods or services;
xi) Methodologies for the assessment of risk;
xii) Guidelines for testing of chemicals, including industrial and agricultural use, pharmaceutical and biological;
xiii) Means that facilitate consumer protection, including with respect to redress the same; and
xiv) any other matter, as determined by the Committee.
6. Each Sub-Committee shall be composed of representatives of each party and shall:
a) Where necessary, consult with or include:
i) Representatives of non-governmental bodies, such as cameras and standardisation bodies or private sector associations;
ii) Representatives of academic institutions of higher education and scientific research;
iii) Technical experts;
iv) representatives of governmental institutions; and
b) Determine its work programme, taking into account relevant international activities.
Article 14-17. Technical Cooperation
1. At the request of a Party may, the other party to the extent possible:
a) That party to provide information or technical advice and assistance on mutually agreed terms and conditions to strengthen measures concerning the standardization of that Party, as well as their activities, processes and systems; and
b) That party to provide information on its technical cooperation programs linked with measures related to standardization on areas of particular interest.
2. Each Party shall encourage cooperation standardisation of its bodies, as appropriate, in standardisation activities, such as through membership in international standardisation bodies.
Article 14-18. Technical Consultations
1. Where a Party has doubts concerning the interpretation or application of this chapter, on measures related to standardization and metrology of the other party, and measures related to them, may apply alternately by the Committee or the mechanism established in Chapter XX (dispute settlement). the Parties shall not use two tracks simultaneously.
2. Where a Party decides to apply to the Committee, it shall notify the other party to consider the matter, refers to any Sub-Committee or another forum to obtain technical advice or non-binding recommendations.
3. The Committee shall consider any matter referred to it in accordance with paragraphs 1 and 2, as expeditiously as possible and, similarly, to the Parties shall make known any technical advice or recommendations that it develops or receives concerning the matter. once the parties receive the Committee a technical advice or recommendations that have requested, send a written response to such technical advice or recommendations within a period determined by the Committee.
4. Subject to paragraphs 2 and 3, in the event that the recommendation issued by the Technical Committee fails to resolve the difference between the parties, the parties may invoke the mechanism established in Chapter XX (dispute settlement). if the parties so agree, consultations before the Committee shall constitute consultations for purposes of article 20-05.
5. The party to ensure that a measure on standardisation of the other party is inconsistent with the provisions of this chapter shall demonstrate that inconsistency.
Chapter XV. Government Procurement
Section A. Definitions
Article 15-01. Definitions
1. For the purposes of this chapter, the following definitions shall apply:
scheduled purchase: the purchase for which an entity listed in annexes 2 and 3 to article 15-02 publishes a call for purchase pursuant to paragraph 4 of article 15-11, and subsequently invites suppliers that have expressed interest in the purchase to confirm their interest pursuant to paragraph 5 of article 15-11;
entity: an entity listed in Annex 1, 2 or 3 to Article 15-02;
technical specification: a specification that establishes the characteristics of goods or processes and related production methods, or the characteristics of services or their related methods of operation, including the applicable administrative provisions. It may also include or deal exclusively with terminology, symbols, packaging, marking or labeling requirements applicable to a good, process, or method of production or operation;
standard: "standard", as defined in Article 14-01;
international standard: "international standard" as defined in Article 14-01;
tendering procedures: open tendering procedures, selective tendering procedures or restricted tendering procedures;
open tendering procedures: procedures in which all interested suppliers may submit tenders;
restricted tendering procedures: procedures by which an entity communicates individually with suppliers only in the circumstances and in accordance with the conditions described in Article 15-16;
selective tendering procedures: procedures in which, under the terms of paragraph 3 of Article 15-12, tenders may be submitted by suppliers invited by the entity to do so;
supplier: a person who has supplied or may supply goods or services in response to an entity's invitation to tender;
locally established supplier: a natural person resident in the territory of the Party, an enterprise organized under the laws of the Party and established in the Party, and a branch or representative office located in the territory of the Party, among others;
services: the services specified in the Appendix to Annex 5 to Article 15-02 and those specified in the Appendix to Annex 6 to Article 15-02, unless otherwise specified; and
construction services: the services specified in the Appendix to Annex 6 to Article 15-02.
Section B. Scope of Application
Article 15-02. Scope of Application
1. This chapter applies to measures adopted or maintained by a Party relating to procurement:
a) An entity of a federal or central specified in Annex 1 to this article; a company or autonomous government entity set out in annex 2 to this article; or a State or Government or municipal regional entity specified in annex 3 to this article in accordance with article 15-24;
b) Goods in accordance with Annex 4 to this article; services in accordance with annex 5 to this article; or construction services in accordance with annex 6 to this Article; and
c) Where it considers that the value of the contract to be awarded equals or exceeds the value of the thresholds, calculated and adjusted in accordance with the inflation rate of the United States of America, as provided in annex 7 to this article, to:
i) Federal or central government entities, $50,000 of the United States of America ($) for contracts for goods, services or any combination thereof, and 6.5 million for contracts for construction services;
ii) Government enterprises and autonomous entities, of $250,000 for contracts for goods, services or any combination thereof, and 8 million for contracts for construction services; and
iii) Entities of State or regional and municipal governments, the value of the applicable thresholds as provided in annex 3 to this article, in accordance with article 15-24.
2. Paragraph 1 is subject to the transitional arrangements laid down in Annex 8 to this article and to the general notes set out in annex 9 to this article.
3. Subject to paragraph 4, where a contract to be awarded by an entity is not subject to this chapter, its provisions shall not be construed to cover any good or service component of that contract.
4. No entity shall, shall be structured or a purchase contract in such a manner as to avoid the obligations of this chapter.
5. Procurement includes procurement by entities through methods such as purchase or lease, with or without an option to buy. purchases does not include:
a) Non-contractual agreements or any form of government assistance, including cooperation agreements, loans, transfers, capital transfers, guarantees, fiscal incentives and supply of goods and services to persons or to State Governments or regional or local governments; or
b) The acquisition of Fiscal Agency services or deposits, liquidation and Management Services for regulated financial institutions and sale and distribution services for government debt.
6. The provisions contained in this Chapter establishes the general principles for the entities of each party in its procurement procedures.
7. The Parties shall ensure that measures to implement its entities are in accordance with the provisions of this chapter.
Article 15-03. Valuation of Contracts
1. Each Party shall ensure that, when determining whether a contract is covered by this chapter, its entities to implement the provisions of paragraphs 2 to 7 in calculating the value of the contract.
2. The value of the contract shall be estimated at the time of publication of a notice in accordance with article 15-11.
3. In calculating the value of a contract, entities shall take into account all forms of remuneration, including premiums, fees, commissions and interests.
4. In addition to paragraph 4 of Article 15-02, an entity may not select a valuation method or purchases subdivided into separate contracts in order to avoid the obligations contained in this chapter.
5. Where an individual requirement would result in the award of a contract or contracts are awarded in separate parts, the basis for valuation shall be:
a) The actual value of the successive contracts of the same type awarded during the preceding 12 months or fiscal year, adjusted where possible, in the light of the changes in quantity and value for 12 months; or
b) The estimated value of the successive contracts of the same nature concluded over the fiscal year or 12 months following the initial contract.
6. In the case of leases, with or without an option to buy, or contracts which do not indicate a total price, the basis for valuation shall be in the case of:
a) Contracts for a given period, the calculation shall be based on the total contract value for its duration; or
b) Contracts for an indefinite period, the estimated monthly payment shall be multiplied by 48.
If the entity is not certain whether the contract is limited in time and the value of the contract, calculated using the method referred to in subparagraph (b).
7. Where the tender consider clauses allowing the listing of alternative or substitute goods or services, the basis for valuation shall be the total value of the maximum permissible, including all possible optional purchases.
Article 15-04. National Treatment and Non-Discrimination
1. With respect to measures covered by this chapter Each Party shall grant the goods of the other party and to the suppliers of such goods and to service providers of another party treatment no less favourable than the most favourable treatment accorded to:
a) Its own goods and suppliers; and
b) Suppliers of goods and another party.
2. With respect to measures covered in this chapter, no party may:
a) To a supplier established in its territory treatment less favourable than that accorded to another supplier established in the Territory, on the basis of the degree of foreign ownership or affiliation; or
b) Discriminate against a locally-established supplier in its territory on the basis that the goods or services offered by that supplier for a particular procurement are goods or services of the other party.
3. Paragraph 1 shall not apply to measures concerning customs duties or other charges imposed on of any kind or in connection with the method of levying charges or such other duties and import regulations, including restrictions and formalities.
4. The Parties shall not introduce requirements of representation or local presence which have as their object or effect discriminate in favour of domestic suppliers.
Article 15-05. Rules of Origin
For purposes of government procurement covered by this chapter, neither party shall apply rules of origin to goods imported from the other party different or inconsistent with the rules of origin applies the party in the normal commercial transactions.
Article 15-06. Denial of Benefits
1. A Party may deny the benefits of this chapter to a service provider of the other party, subject to prior notification and consultation, where the party establishes that the Service is being provided by an enterprise that has no substantial business activities in the territory of any party and is owned or controlled by persons of a non-party.
Article 15-07. Prohibition of Countervailing Special Conditions
Each Party shall ensure that its entities do not take into account, upon request, nor impose countervailing special conditions in the qualification and selection of suppliers of goods or services. in the evaluation of tenders or in the award of contracts. for the purposes of this article, shall mean those countervailing special conditions that an entity may impose or take into account before or during the procurement procedures to encourage local development or improve balance of payments accounts by means of local content requirements, licensing of the use of technology, investments, countertrade or similar requirements.
Article 15-08. Technical Specifications
1. Each Party shall ensure that its entities do not develop, adopt or apply any technical specification with the purpose or the effect of creating unnecessary obstacles to trade.
2. Each Party shall ensure that, where appropriate, any technical specification requiring their entities:
a) Defined in terms of performance criteria rather than design or descriptive characteristics; and
b) Based on international standards, national technical regulations, recognised national building codes or standards.
3. Each Party shall ensure that technical specifications stipulating its entities do not require or refer to a particular trademark or trade name; patent, design or type, specific origin; suppliers; or producer unless there is no other sufficiently precise or intelligible way of describing the procurement requirements and provided that in such cases are included in the tender words such as "or equivalent.
4. Each Party shall ensure that its entities do not seek or accept, in a manner that would have the effect of precluding that advice, competition may be used in the preparation or adoption of any technical specification for a specific procurement from a person that may have a commercial interest in that procurement.
Section C. Tendering Procedures
Article 15-09. Tendering Procedures
1. Entities shall make its purchases by means of open or restricted selective tendering procedures. without prejudice to the provisions of article 15-16, entities of each Party may choose to the open or selective tendering procedures, provided that the procedure chosen to ensure maximum possible competition.
2. Each Party shall ensure that the tendering procedures of its entities:
a) Are applied in a non-discriminatory manner; and
b) Are consistent with this Article and Articles 15-10 on 15-16.
3. In this regard, each Party shall ensure that its entities:
a) Do not provide any information relating to supplier to a specific procurement in a manner that would have the effect of precluding competition or grant an advantage to a supplier; and
b) All suppliers to provide equal access to information regarding a purchase during the period prior to the issuance of any notice or tender basis.
Article 15-10. Supplier Qualification
1. In accordance with article 15-04, in the qualification of suppliers during the tendering procedure, no entity of a Party may discriminate between suppliers of the other party or between domestic suppliers and suppliers of the other party.
2. The qualification of suppliers to conduct an entity shall be consistent with the following:
a) The conditions for participation by suppliers in tendering procedures shall be published sufficiently in advance to allow suppliers are provided with adequate time to initiate and to the extent that it is compatible with the efficient operation of the procurement to complete the qualification procedures;
b) The conditions for participation in tendering procedures, such as financial guarantees and technical qualifications and information necessary to prove the financial, commercial and technical capacity of suppliers, as well as the verification that the supplier satisfies the conditions, shall be limited to those essential to ensure the fulfillment of the contract in question;
c) The financial, commercial and technical capacity of a supplier shall be determined on the basis of its global business, including its activity in the territory of the Party of the supplier as its activity in the territory of the Party of the entity has, if the buyer;
d) An entity may not use the classification process, including the time required to exclude suppliers of another party a list of suppliers or not to be considered for a particular purchase;
e) An entity shall recognize as qualified suppliers to those suppliers of another party that meet the conditions for participation in a particular purchase;
f) An entity shall consider for a particular procurement those suppliers of another party that request to participate in the procurement and that are not yet qualified, provided that there is sufficient time to complete the qualification procedure;
g) An entity that maintains a permanent list of qualified suppliers shall ensure that suppliers may apply for qualification at any time and that all qualified suppliers so requesting are included in the List within a reasonably short time and that all suppliers included in the list of the termination or notified of their removal of the same;
h) If, after the publication of a notice in accordance with Article 1511, a supplier not yet qualified requests to participate in a particular purchase, the entity shall promptly start procedures for qualification;
i) An entity shall communicate to any supplier that qualification has applied for its decision on whether it has been qualified; and
j) Where an entity rejects an application for qualification or ceases to recognize a supplier qualification, upon request, the entity promptly provide pertinent information concerning its reasons for action.
3. Each Party shall:
a) It shall ensure that each of its entities may use a single procedure qualification; however the procedure for the assessment of suppliers will vary according to the nature of the aspects to analyse. where the entity established the need for a different procedure, and at the request of the other party, is prepared to demonstrate the need, may use additional qualification procedures; and
b) Endeavour to minimize differences between the qualification procedures of its entities.
4. Nothing in paragraphs 2 and 3 prevent an entity shall exclude a supplier on grounds such as bankruptcy or false declarations.
Article 15-11. Invitation to Participate
1. Except as provided in article 15-16, an entity shall publish in accordance with paragraphs 2, 3 and 5, an invitation to participate in the appropriate for all purchases publication referred to in annex 1 to article 15-19.
2. The invitation to participate shall take the form of a notice containing the following information:
a) A description of the nature and quantity of the goods or services to be procured, including any option to buy future and, if possible:
i) An estimate of when they may be exercised such options; and
ii) In the case of successive contracts of the same type, an estimate of when subsequent notices will be issued;
b) An indication of whether it is open or selective tendering procedures;
c) Where relevant, the date to engage in or conclude the delivery of goods or services to be procured;
d) Where appropriate, the address to which must be submitted an application to be invited to tender or for qualifying for the suppliers list and the final date for receipt of the application;
e) The Authority which shall refer to tenders and the final date for receipt;
f) The address of the entity awarding the contract and provide any information necessary for obtaining specifications and other documents;
g) A statement of any economic or any guarantee, technical and financial information and documents required from suppliers;
h) The amount and terms of payment of any sum payable for the tender; and
i) The indication if the entity invites the submission of tenders for the acquisition or rental, with or without an option to buy.
3. In the case of selective tendering, the invitation to participate shall contain, in addition to the provisions in paragraph 2, the following information:
a) The authority to which the request must be sent to be invited to tender or for qualifying for the suppliers list and the final date for receipt of the application; and
b) When it does not involve the use of a supplier registration, deadlines for submission of applications for admission to the tender.
4. Notwithstanding paragraphs 2 and 3, an entity listed in annex 2 or 3 of Article 15-02 may use an invitation to participate as a notice of planned procurement that shall contain the information in paragraphs 2 and 3 insofar as is available to the entity but shall include at least the following information:
a) A description of the subject-matter of the procurement;
b) The time limits for the receipt of tenders or, in the case of selective tendering, for the submission of requests to be invited to tender;
c) The authority to which it may request the documents relating to procurement;
d) A statement that interested suppliers should express their interest in the procurement; and
e) The identification of an information centre in the Entity where they may seek additional information.
5. An entity that uses an invitation to participate as a notice of planned procurement invite, subsequently, to suppliers that have expressed an interest in the procurement to confirm their interest, based on the information provided by the entity shall include at least the information set out in paragraphs 2 and 3.
6. Notwithstanding paragraphs 2 and 3, an entity listed in annex 2 or 3 of Article 15-02 may use an invitation to participate as a notice regarding the rating system. an entity that uses such notice shall provide timely, in accordance with the considerations referred to in paragraph 8 of Article 15-15, information to allow all suppliers that have expressed an interest in participating in the procurement have a real chance to assess their interest. the information shall normally data required for the convening referred to in paragraphs 2 and 3. information provided to any interested supplier shall be provided without discrimination to all other stakeholders.
7. In the case of selective tendering procedures or constitutes an entity that maintains a permanent list of qualified suppliers shall be inserted in the appropriate publication referred to in annex 1 to article 15-19, a notice containing the following information:
a) A list of all existing lists, including its led, in relation to those types of goods or services or goods or services which are made through the lists;
b) The conditions to suppliers to be included in the lists and the methods pursuant to which the entity in question shall verify each of these conditions; and
c) The period of validity of the list and the formalities for its renewal. this publication shall meet annually.
8. If, after the publication of an invitation to participate, but before the expiration of the time set for opening or receipt of tenders as stated in the notice or the tender, the necessary modifications or entity issuing the invitation to tender or databases, the Entity shall ensure that the notice or tender bases of new or amended the same circulation is given to the original documentation. any significant information given to one supplier on purchase, shall be given to other suppliers simultaneously all concerned in sufficient time to allow all interested parties the appropriate time to consider such information and to respond.