c. a good imported into the territory of a Party, which is subsequently deemed to be exported from its territory or used as a material in the production of another good that is subsequently deemed to be exported to the territory of the other Party, or replaced by an identical or similar good used as a material in the production of another good that is subsequently deemed to be exported to the territory of the other Party, by reason of:
i) its shipment to a store free of customs duties; or
ii) its shipment to stores on board vessels or as supplies for vessels or aircraft;
d. the refund by a Party of customs duties paid on a specific good imported into its territory and subsequently exported to the territory of the other Party, where such refund is granted on the grounds that the good does not correspond to the samples or specifications of the subject good, or by reason of the shipment of that good without the consent of the consignee; or
e. an originating good imported into the territory of a Party that is subsequently exported to the territory of the other Party, or used as a material in the production of another good subsequently exported to the territory of the other Party, or replaced by an identical or similar good used as a material in the production of another good subsequently exported to the territory of the other Party.
10. The Party that refunds, exempts or reduces customs duties shall, on request of the other Party, provide such information as it requires to verify the existence of the conditions set out in paragraph 6, including statistical information relating to imports on which it grants refunds, exemptions or reductions of customs duties in respect of a good exported to the territory of another Party.
11. As a condition for excluding from the calculation of the percentage referred to in paragraph 9(a), refunds, exemptions or reductions of customs duties granted on a good that meets the conditions of paragraph 4(a) and (b), the Party refunding, exempting or reducing such customs duties shall demonstrate that there is no production in the free trade area of a good identical or similar to that good.
12. For purposes of paragraph 11, on request of the Party refunding, exempting or reducing customs duties on a good, the other Party shall, to the extent possible, provide relevant and available information on that good.
13. Each Party shall establish clear and strict procedures for the application of paragraphs 4 and 5, in accordance with the following:
a. the Party that decides to initiate an investigation to implement paragraphs 4 and 5 shall publish the initiation of the investigation in the appropriate official organs of dissemination and shall notify the exporting Party in writing on the day following publication;
b. for purposes of determining significant distortion and injury under paragraph 6(b)(i) and (ii), the competent authorities shall evaluate all factors of an objective and quantifiable nature;
c. in determining the application of paragraphs 4 and 5, a direct causal link shall also be demonstrated between the reimbursement, exemption or reduction, and the distortion and injury to the domestic production of identical or similar goods, or direct competitors;
d. if as a result of this investigation the competent authority determines, on the basis of objective evidence, that the conditions set forth in this Article are met, the importing Party may initiate consultations with the other Party;
e. the consultation procedure shall not oblige the Parties to disclose information that has been provided on a confidential basis, the disclosure of which could impede compliance with the laws of the Party regulating the matter or could cause injury to the other Party.
f. the period of prior consultations shall begin on the day following receipt by the exporting Party of the notification of the request for the initiation of consultations. The period of prior consultations shall be 45 days, unless the Parties agree on a shorter period;
g. the notification referred to in subparagraph f) shall be made through the competent authority and shall contain sufficient background information to support the application of paragraphs 4 and 5, including:
(i) the names and addresses of the domestic producers of identical or similar goods, or direct competitors representative of the domestic production, their share in the domestic production of that good, and the reasons that lead them to claim that they are representative of that sector;
ii) a clear and complete description of the good subject to the proceeding, the tariff subheading under which it is classified and the tariff treatment in force, as well as the description of the identical or similar good, or direct competitor;
iii) import data for each of the three most recent calendar years that provide the basis that such good is being imported in increasing quantities, either in absolute terms or relative to domestic production;
iv) data on the total domestic production of the identical or similar good, or direct competitor for the last three most recent years; and
v) data demonstrating injury caused by imports of the good in question, in accordance with subparagraphs (b) and (c);
h. the application of paragraphs 4 and 5 may only be adopted after the conclusion of the prior consultation period;
i. during the consultation period the exporting Party shall make any comments it deems relevant; and
j. the exporting Party shall apply paragraphs 4 and 5 at the conclusion of the consultation period under subparagraph f) if any of the circumstances set out in paragraph 6 are found to exist.
14. The Parties shall consult annually on the implementation of this Article.
Article 3-06. Temporary Admission of Goods
1. Each Party shall allow the temporary importation without payment of customs tariff to:
a) Professional equipment necessary for carrying out the activity, trade or profession of a business person;
b) Equipment for the press or for transmission to air of radio or television broadcasting and cinematographic equipment;
c) For sports purposes and goods intended for display or demonstration, including components and accessories, ancillary apparatus; and
d) Commercial Samples and Advertising films,
Imported from the territory of the other party, regardless of their origin and that in the territory of the Party are available similar goods, direct competitors or substitutes.
2. Except as otherwise provided in this Treaty, the parties may subject the Temporary Importation without payment of customs tariff, of a good of the type indicated in subparagraphs (a), (b) or (c) of paragraph 1 to one of the following conditions, which may be taken without additional conditions:
a) If the good is imported by a national or resident of the other party;
b) Where the good is used exclusively by the visitor or person under the personal supervision in the performance of its activity, trade or profession;
c) Where the good is not sale, lease or in any other way transfer while in its territory under the Temporary Importation procedure;
d) That the good to be accompanied by a bond or guarantee not exceeding 110 percent of the charges that would otherwise due, where appropriate, on entry or final importation, or by another form of guarantee reimbursable at the time of exportation of goods, except that it may require bond or security of customs duties on an originating good;
e) Where the good be capable of identification by any reasonable method established by the Customs Authority;
f) The good to be exported on the departure of that person within the period applicable to the purpose of the temporary admission;
g) The goods are imported in quantities not greater than reasonable according to the intended to use it;
h) Where the good does not undergo modification or processing during the term of import except normal wear authorized by the use of the good; and
i) The good that complies with sanitary and phytosanitary measures taken pursuant to Chapter V (sanitary and phytosanitary measures) and measures related to standardization applicable adopted in accordance with chapter XIV (measures related to standardization).
3. Except as otherwise provided in this Treaty, the parties may subject the Temporary Importation without payment of customs tariff, of a good of the type indicated in paragraph (d) of paragraph 1, any of the following conditions, which may be taken without additional conditions:
a) If the good is imported only for purposes of lifting of orders for goods or services provided from the territory of the other party or from another country that is not a party;
b) Where the good is not sale, lease or in any other form, and are used only for demonstration or exhibition while in its territory;
c) That the good to be accompanied by a bond or guarantee not exceeding 110 percent of the charges that would otherwise due, where appropriate, on entry or final importation, or by another form of guarantee reimbursable at the time of exportation of goods, except that it may require bond or security of customs duties on an originating good;
d) Where the good be capable of identification by any reasonable method established by the Customs Authority;
e) When the good is exported within a period reasonably corresponding to the purpose of the temporary admission;
f) The goods are imported in quantities not greater a reasonable in accordance with its intended use;
g) Where the good does not undergo modification or processing during the term of import except normal wear authorized by the use of the good; and
h) The good that complies with sanitary and phytosanitary measures taken pursuant to Chapter V (sanitary and phytosanitary measures) and measures related to standardization applicable adopted in accordance with chapter XIV (measures related to standardization).
4. Where a good imported temporarily fails to comply with any of the conditions that imposes a Party under paragraphs 2 and 3, that party may apply the customs duty and any other charge payable on entry or final importation of the same.
Article 3-07. Import Free of Customs Tariff for Commercial Samples Void
Each Party shall authorize the free importation of customs tariff to non-commercial samples from the territory of the other party.
Article 3-08. Exemption from Customs Tariffs
1. No Party may adopt any new waiver of customs duties when the exemption is explicitly or implicitly the fulfillment of a performance requirement.
2. From 1 July 2007, neither party may condition, explicitly or implicitly, any exemption from customs duties in force on the fulfilment of a performance requirement.
3. If a Party can demonstrate that an exemption or a combination of waivers of customs duties that the other party has given to commercial goods for use by a designated person has an adverse effect on:
a) Its economy;
b) The commercial interests of a person of that Party; or
c) The commercial interests of an enterprise that is owned or controlled by a person of that Party, productive whose premises are located in the territory of the party granting the waiver;
The Party granting the waiver shall do so or make available to any importer.
Section D. Non-tariff Measures
Article 3-09. Restrictions on the Importation and Exportation.
1. Except as otherwise provided in this Treaty, neither party may adopt or maintain any prohibition or restriction on the importation of any good of the other party or on the exportation for sale or export of any good destined for the Territory of the other party, except as provided in article XI of the GATT 1994, including its interpretative notes. to this end article XI of GATT 1994 and its interpretative notes are incorporated into this Agreement and form an integral part thereof.
2. The parties understand that in any circumstances in which any other form of restriction is prohibited, the rights and obligations of GATT 1994 as incorporated in paragraph 1 prohibits the requirements of export and import price, except as permitted by the application of sanctions and assessed countervailing commitments.
3. In cases where a party adopts or maintains a prohibition or restriction on the importation or exportation of goods or to a country that is not a party, nothing in this Treaty shall be construed as to prevent:
a) Limiting or prohibiting the importation of the goods in the country that is not a party, from the territory of the other party; or
b) As a condition requiring of such export of goods of the Party to the territory of the other party that they are re-exported to the country that is not a party, directly or indirectly, without being consumed in the territory of the other party.
4. In the event that a party adopts or maintains a prohibition or restriction on the importation of a good from a country that is not a party, at the request of either party The Parties shall consult with a view to avoiding undue interference with or distortion pricing mechanisms, marketing and distribution in the other party.
5. Paragraphs 1 through 4 shall not apply to the measures set out in the annex to article 3-03 and 3-09.
Article 3-10. Export Taxes
1. Except as provided in this article No Party shall adopt or maintain excise duty or charge on the export of any good to the territory of the other party, unless they are adopted or maintained on such good when destined for domestic consumption.
2. Each Party shall adopt or maintain a tax, tax or other charge on the export of goods basic foodstuffs listed in paragraph 3, on their ingredients or on the goods which are derived from such foodstuffs, if such taxes, levies or charge is used:
a) If the benefits of a domestic food assistance including those foods are received only by domestic consumers; or
b) To ensure the availability of sufficient quantities of basic foodstuff to domestic consumers or of sufficient quantities of its ingredients or of the goods from which such basic foodstuffs goods related to a domestic processing industry, when the domestic price of such basic foodstuff is held below the world price as part of a governmental stabilization, provided that such taxes, taxes or charges:
i) Do not have the effect of increasing the protection afforded to such domestic industry; and
ii) Support only for the period necessary to maintain the integrity of the Stabilization Plan.
3. For the purposes of paragraph 2, goods basic foodstuffs shall mean:
Vegetable oil
Rice
Canned tuna
White sugar
Brown sugar
Beef steak or pulp
Soluble coffee
Roasted coffee
Chicken meat
Ground beef
Beer
Packaged chili
Chocolate powder
Chicken concentrate
Fish fillet
Bean
Popular sweet cookies
Crackers
Jellies
Corn flour
Wheat flour
Beef liver
Oat flakes Egg
Cooked ham
Milk
condensed milk
Powdered milk
Powdered milk for children
Evaporated milk
Pasteurized milk
Corn
Vegetable shortening
Margarine
Corn dough
White bread
Boxed bread
Soup pasta
Tomato puree
Cheese
Bottled soft drinks
Bone-in slices
Salt
Canned sardines
Corn tortilla
4. Notwithstanding paragraph 1, each Party may adopt or maintain levy a tax or charge on the export of any goods to the territory of the other party, if such taxes or levies a charge applied temporarily alleviate critical desabasto for good that foodstuff. For purposes of this paragraph, temporarily means up to one year or a longer period agreed by the parties.
Article 3-11. Customs Processing Fees
Neither party shall increase any customs duty or in respect of the service provided by the customs duties on goods originating and eliminate such duties on goods originating from 1 July 2005.
Article 3-12. Country of Origin Marking
The Annex to this article applies to measures relating to the country of origin marking.
Article 3-13. Distinctive Product
The Annex to this article applies to products specified therein.
Section E. Publication and Notification
Article 3-14. Publication and Notification
1. Each Party shall promptly publish and notify the laws, regulations, administrative regulations and procedures of general application that has entered into force and relating to the classification or the valuation of goods to Customs valuation, the rates of customs duties, taxes or charges or to other measures, prohibitions or restrictions on imports or exports, or to the transfer of payments relating to, or the sale, distribution, transport, insurance, storage, inspection, the submission, processing, mixing or any other use of such goods to enable Governments and traders or interested persons of the other party are aware of them. each Party shall also publish international agreements relating to trade policy which are in force between the Government or a government authority that party and the Government or a government authority of the other party.
2. To the extent possible, each Party shall publish in advance any measure referred to in paragraph 1 that it proposes to adopt interested persons and provide a reasonable opportunity to comment on such proposed measures.
3. No party shall apply before its official publication any measure of general nature adopted by the party which has the effect of increasing a customs duty or other charge on the importation of goods of the other party, or imposing a new measure, or more burdensome restrictions or prohibitions on the importation of goods of the other party or on the transfer of funds related to them.
4. The provisions of this article shall not require any party to disclose confidential information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interests of particular public or private enterprises.
5. Each Party shall identify in terms of tariff items and nomenclature for them in accordance with its respective tariff measures, restrictions or prohibitions on the importation or exportation of goods for reasons of national security, public health, preservation of flora and fauna, the environment, health, fitopecuaria standards, labels, international commitments, requirements of public order or any other rules.
Section F. Provisions on Textile Goods
Article 3-15. Levels of Flexibility to Temporary Goods Classified In Chapters 61 and 62 of the Harmonized System.
1. Each Party shall accord to goods classified in Chapters 61 and 62 of the Harmonized System, produced in the territory of the other party and imported into its territory in accordance with the provisions of paragraph 2, the preferential tariff treatment set out in the schedule of tariff relief for goods originating in accordance with the amounts and periods set out below:
a) For the period from 1 July 1998 to 30 June 1999 United States dollars ($125,000);
b) For the period from 1 July 1999 to 30 June 2000, $145,000;
c) For the period from 1 July 2000 to 30 June 2001, $165,000;
d) For the period from 1 July 2001 to 30 June 2002, $170,000; and
e) For the period from 1 July 2002 to 30 June 2003, $175,000.
2. For the purposes of this article, the goods classified in Chapters 61 and 62 of the harmonized system shall comply with the following requirements:
a) Those goods classified in chapter 61 of the Harmonized System, a change to heading 61.01 through 61.17 from any other chapter, provided that the good is cut (or fabric), to form and sewn or otherwise assembled in the territory of the exporting Party; and
b) Those goods classified in Chapter 62 of the Harmonized System, a change to heading 62.01 through 62.17 from any other chapter, provided that the good is cut to shape) (or fabric, and sewn or otherwise assembled in the territory of the exporting Party.
3. The total annual amounts specified in paragraph 1 may not be allocated to goods classified in a particular heading in an amount not exceeding 25 per cent of the total annual.