1. For the purposes of this Article, perishable goods are goods that rapidly decay due to their natural characteristics, in particular in the absence of appropriate storage conditions.
2. With a view to preventing avoidable loss or deterioration of perishable goods, each Party shall:
(a) provide, in normal circumstances, for perishable goods to be released within six hours of arrival, provided: (3)
(i) all information and documentation necessary to release the goods have been submitted on or prior to arrival; and
(ii) the goods are not to be subject to physical examination or inspection; and
(b) release perishable goods outside the business hours of its customs authority in exceptional circumstances, if it would be appropriate to do so.
2. Each Party shall give appropriate priority to perishable goods when scheduling any examinations that may be required.
4. Each Party shall either arrange, or allow an importer to arrange, for the proper storage of perishable goods pending their release. Each Party may require that any storage facilities arranged by the importer be approved or designated by its relevant authorities. Each Party shall, if practicable and consistent with its laws and regulations, on request of the importer, provide for the release to take place at those storage facilities.
Article 4.11. Risk Management
1. Each Party shall adopt or maintain a risk management system which shall include the use of electronic data processing techniques for customs control that enables its customs authority to focus its inspection activities on high- tisk consignments and expedite the release of low-risk consignments.
2. Each Party shall design and apply risk management in a manner as to avoid arbitrary or unjustifiable discrimination, or disguised restrictions to international trade.
3. Each Party shall base risk management on assessment of risk through appropriate selectivity criteria.
4. Each Party may also select, on a random basis, consignments for inspection activities referred to in paragraph 1 as part of its risk management.
5. In order to facilitate trade, each Party shall periodically review and update, as appropriate, the risk management system specified in paragraph 1.
Article 4.12. Advance Rulings
1. Each Party shall issue through its customs authority an advance ruling to an applicant that has submitted a written request with respect to:
(a) tariff classification;
(b) whether a good is originating in accordance with Chapter 3 (Rules of Origin and Origin Procedures); and
(c) such other matters as the Parties may decide.
2. On receipt of all necessary information, each Party shall issue an advance ruling referred to in subparagraphs 1(a) or 1(b) as soon as practicable and in any event within 90 days or in such shorter time as prescribed in each Party's customs law.
3. A Party may request that the applicant provide additional information at any time during the course of an evaluation of an application for an advance ruling, which may include a sample of the good, necessary to evaluate the request.
4. A Party may decline to issue an advance ruling if the facts and circumstances forming the basis of the advance ruling are the subject of administrative or judicial review, or in circumstances set out in each Party's customs law. A Party that declines to issue an advance ruling shall promptly notify the applicant in writing, setting out the relevant facts and the basis for its decision.
5. A Party may modify or revoke an advance ruling that it has issued ift
(a) the ruling was made in error or based on an error of fact;
(b) the information provided is false or inaccurate;
(c) there is a change in the material facts or circumstances on which the tuling was based; or
(d) a change is required to conform with a judicial decision or a change in its laws and regulations.
6. A Party may only revoke, modify, or invalidate an advance ruling with retroactive effect, ifthe ruling was based on incomplete, incorrect, inaccurate, false, or misleading information provided by the applicant.
7. When a Party revokes, modifies, or invalidates the advance ruling, it shall provide written notice to the applicant setting out the relevant facts and the basis for its decision.
8. Each Party shall publish online, at least:
(a) the requirements for the application for an advance ruling, including the information to be provided and the format;
(b) the time period by which it will issue an advance ruling; and
(c) the length of time for which the advance ruling is valid.
9. An advance ruling issued by a Party shall be binding on that Party in respect of the applicant that sought it and on the applicant.
10. Each Party shall provide, upon written request of an applicant, a review or appeal of the advance ruling or of the decision to revoke, modify, or invalidate it. Subject to any confidentiality requirements in its laws and regulations, a Party may publish its advance rulings, including online.
Article 4.13. Customs Valuation
For the purpose of determining the customs value of goods traded between the Parties, Part I of the Customs Valuation Agreement shall apply.
Article 4.14. Single Window (4)
1. Each Party shall adopt or maintain single window systems enabling traders to submit documentation or data requirements for the exportation, importation, and transit of goods through a single entry point to the participating authorities or agencies.
2. In cases where documentation or data requirements have already been received through the single window, the same documentation or data requirements shall not be requested by participating authorities or agencies except in urgent circumstances and other limited exceptions which are made public.
3. Each Party shall adopt or maintain procedures to determine duties and taxes upon the submission of the customs declaration through the single window and to allow collection of payment electronically upon approval of the customs declaration.
Article 4.15. Authorised Economic Operator (5)
1. Each Party shall establish or maintain a trade facilitation partnership programme for operators who meet specified criteria, hereinafter referred to as the Authorised Economic Operator (AEO) programme. Each Party's programme shall operate in accordance with internationally recognised standards which the respective Parties have accepted, such as the WCO SAFE Framework and Article 7.7 of the Agreement on Trade Facilitation.
2. The specified criteria to qualify as an AEO shall be published and relate to compliance, or the risk of non-compliance, with requirements specified in the Parties' laws, regulations, or procedures.
3. The specified criteria to qualify as an AEO shall not be designed or applied so as to afford or create arbitrary or unjustifiable discrimination between operators where the same conditions prevail and shall allow the participation of small and medium-sized enterprises.
Article 4.16. Customs Brokers
The Parties:
(a) agree that their respective customs provisions and procedures shall not require the mandatory use of customs brokers;
(b) shall publish any measures on the use of customs brokers; and
(c) shall apply transparent, non-discriminatory, and proportionate rules if and when licensing customs brokers.
Article 4.17. Review and Appeal
1. Each Party shall provide effective, prompt, non-discriminatory, and easily accessible procedures to guarantee the right of appeal against a decision on a customs matter.
2. Each Party shall ensure that any person to whom it issues a decision on a customs matter has access to:
(a) an appeal to or review by an administrative authority higher than or independent of the official or office that issued the decision; and
(b) a judicial appeal or review of the decision.
3. Each Party shall ensure that, in a case where the decision on appeal or review under subparagraph 2(a) is not given within the period of time provided for in its laws and regulations or without undue delay, the person has the right to further administrative or judicial appeal or review or any other recourse to judicial authority in accordance with that Partyâs laws and regulations.
4. Each Party shall provide a person to whom it issues an administrative decision with the reasons for the decision, in writing, so as to enable the person to have recourse to appeal procedures where necessary.
Article 4.18. Penalties
1. Each Party shall ensure that any penalties imposed for breaches ofits customs law or customs procedures be proportionate and non-discriminatory. Any penalty imposed shall depend on the facts and circumstances of the case and shall be commensurate with the degree and severity of the breach.
2. Each Party is encouraged to require its customs authority, when imposing a penalty for a breach of its customs law or customs procedures, to consider as a potential mitigating factor the voluntary disclosure of the breach prior to its discovery by the customs authority.
3. Each Party shall ensure that, if a penalty is imposed for a breach of customs law or customs procedures, an explanation in writing is provided to the person upon whom the penalty is imposed, specifying the nature of the breach and the applicable customs law or customs procedures under which the amount or range of penalty for the breach has been prescribed.
4. Each Party shall provide in its laws, regulations, or customs procedures, or shall otherwise give effect to, a fixed and finite period within which its customs authority may initiate proceedings to impose a penalty relating to a breach of its customs law or customs procedures.
Article 4.19. Transit and Transportation
Each Party Shall:
(a) ensure the facilitation and effective control of transhipment operations and transit movements within its respective territory;
(b) where appropriate, promote and implement regional transit arrangements with a view to facilitating trade;
(c) ensure cooperation and coordination between all concerned authorities and agencies in its respective territory to facilitate traffic in transit; and
(d) allow goods intended for import to be moved within its territory under customs control from a customs office of entry to another customs office in its territory from where the goods would be released or cleared.
Article 4.20. Post Clearance Audit.
1. With a view to expediting the release of goods, each Party shall:
(a) adopt or maintain post-clearance audit to ensure compliance with customs law;
(b) conduct post-clearance audits in a risk-based manner, which may include appropriate selectivity criteria;
(c) conduct post-clearance audits in a transparent manner. Where an audit is conducted and conclusive results have been achieved, the Party shall, without delay, notify the person whose record is audited of the results, the reasons for the results, and the audited person's rights and obligations; and
(d) wherever practicable, use the result of post-clearance audit in applying risk management.
2. The Parties acknowledge that the information obtained in a post-clearance audit may be used in further domestic administrative or judicial proceedings.
Article 4.21. Confidentiality
1. Each Party shall maintain, in conformity with its law, the confidentiality of information collected as part of its customs processes, including determination of origin, and shall protect that information from use or disclosure that could prejudice the competitive position of the trader to whom the confidential information relates. Where information is provided to one Party by the other Party, and the Party receiving the information is required by its law to disclose the information, the receiving Party shall notify the Party who provided that information wherever possible in advance of that disclosure.
2. Confidential information collected pursuant to this Chapter or Chapter 3 (Rules of Origin and Origin Procedures) shall only be used or disclosed for the purpose of administration and enforcement of customs matters, including determination of origin, or as otherwise provided under the Party's law, except with the permission of the person or the Party who provided the confidential information. Where that permission is sought from, and has been granted by a Party, such use shall then be subject to any restrictions laid down by that Party.
3. Paragraph 2 shall not preclude the use of information collected as part of its customs processes as evidence in proceedings or charges subsequently instituted before the courts or tribunals for failure to comply with a Party's law. Where the information is received from the other Party, the Party shall notify the Party who provided the information in advance of such use.
4. If confidential information is used or disclosed other than in accordance with this Article, the Party shall address the incident, in accordance with its law or procedures, and review or update its processes and safeguards, as appropriate, to prevent a reoccurrence.
Article 4.22. Rules of Origin and Customs and Trade Facilitation Working Group
The Rules of Origin and Customs and Trade Facilitation Working Group established under Article 30.10 (Working Groups - Institutional Provisions) shall be responsible for the effective implementation and operation of this Chapter.
Chapter 5. SANITARY AND PHYTOSANITARY MEASURES
Article 5.1. Definitions.
For the purposes of this Chapter, the following definitions apply:
(a) the definitions in Annex A of the SPS Agreement;
(b) the definitions adopted under the auspices of the Codex Alimentarius Commission ("Codex");
(c) the definitions adopted under the auspices of the World Organisation for Animal Health ("OIE"); and
(d) the definitions adopted under the auspices of the International Plant Protection Convention ("IPPC").
2. Further to paragraph 1, in the event of an inconsistency between the definitions set out in the SPS Agreement and the definitions adopted under the auspices of the Codex, the OIE, or the IPPC, the definitions set out in the SPS Agreement shall prevail.
3. For the purposes of this Chapter:
(a) "competent authority" means a government body of a Party responsible for measures and matters referred to in this Chapter;
(b) "import check" means an assessment, that may include consignment documentation and identity examination and testing, which is conducted by an importing Party or its delegated representative to determine if a consignment complies with the sanitary and phytosanitary requirements of the importing Party;
(c) "SPS Agreement" means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement.
Article 5.2. Scope
1. Except as provided in paragraph 3, this Chapter shall apply to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties.
2. Notwithstanding paragraph 1, this Chapter shall not apply to a measure or good covered by the Sanitary Agreement.
3. This Chapter shall also apply to cooperation on antimicrobial resistance ("AMR").
Article 5.3. Objectives
The objectives of this Chapter are to:
(a) protect human, animal and plant life and health in the territory of the Parties while facilitating trade between them;
(b) ensure that the Parties' sanitary and phytosanitary measures do not create unjustified barriers to trade;
(c) further the implementation of the SPS Agreement;
(d) promote transparency and understanding on the application of each Party's sanitary and phytosanitary measures;
(e) maintain and enhance cooperation between the Parties in the Codex, the OIE, and the IPPC to develop international standards, guidelines, and recommendations on animal health, food safety, and plant health; and
(f) enhance cooperation between the Parties to reduce the development and spread of AMR.
Article 5.4. Affirmation of the SPS Agreement
1. The Parties affirm their rights and obligations with respect to each other under the SPS Agreement.
2. Nothing in this Chapter shall affect the rights and obligations of each Party under the SPS Agreement.
Article 5.5. Competent Authorities and Contact Points
1. Each Party shall notify to the other Party a list of its competent authorities upon the date of entry into force of this Agreement. The notification shall include contact information of these authorities.
2. Each Party shall also designate and notify a contact point for matters arising under this Chapter including, if different, a contact point to coordinate the Sanitary and Phytosanitary Measures Sub-Committee ("SPS Sub- Committee") agenda on the date of entry into force of this Agreement.
3. Each Party shall promptly notify the other Party of any change in its competent authorities, the contact information of its competent authorities, or its contact point.
Article 5.6. Equivalence
1. The Parties acknowledge that recognition of the equivalence of sanitary and phytosanitary measures is an important means to facilitate trade. The determination of equivalence rests with the importing Party.
2. In determining the equivalence of a specific sanitary or phytosanitary measure, group of measures, or equivalence on a systems-wide basis, each Party shall take into account the relevant guidance of the WTO SPS Committee and international standards, guidelines, and recommendations.
3. At the request of the exporting Party, the importing Party shall, within a reasonable period of time, explain the objective and rationale of its sanitary or phytosanitary measure and clearly identify the risk the sanitary or phytosanitary measure is intended to address.
4. When determining the equivalence of phytosanitary measures, each Party shall apply the principles laid down in the International Standard for Phytosanitary Measures ("ISPM") No. 24 Guidelines for the determination and recognition of equivalence of phytosanitary measures adopted under the IPPC.
5. If the importing Party receives a request for an equivalence assessment, it shall initiate the equivalence assessment without unreasonable delay.
6. The importing Party shall recognise the equivalence of sanitary or phytosanitary measures, even if the measures differ from its own, if the exporting Party objectively demonstrates to the importing Party that the exporting Party's measures achieve the importing Party's appropriate level of protection.
7. If an equivalence assessment does not result in an equivalence determination by the importing Party, the importing Party shall provide the exporting Party with the rationale for its decision.
Article 5.7. Recognition of Pest Freedom
1. Each Party shall recognise the concepts of Pest Free Areas, Pest Free Places of Production, and Pest Free Production Sites, as well as areas of low pest prevalence as specified in the ISPMs.
2. For the purposes of trade, each Party shall accept the other Party’s determinations regarding Pest Free Areas, Pest Free Places of Production, Pest Free Production Sites, and areas of low pest prevalence.
3. Without prejudice to Article 5.10 (Trade Conditions), where the importing Party’s import requirements permit the use of Pest Free Areas, Pest Free Places of Production, Pest Free Production Sites, or areas of low pest prevalence by the exporting Party in respect of a particular commodity and a specific pest, the importing Party shall take into account subparagraphs (a) to (g) and the relevant ISPMs:
(a) for the purposes of trade, each Party will accept the other Party’s official controls (1) in the establishment and maintenance of Pest Free Areas, Pest Free Places of Production, and Pest Free Production Sites;
(b) the exporting Party shall communicate Pest Free Areas, Pest Free Places of Production, Pest Free Production Sites, or areas of low pest prevalence to the other Party and, on request for additional information, shall provide an explanation and supporting data as provided for in the relevant ISPMs or as otherwise deemed appropriate;
(c) if the importing Party is satisfied with the evidence provided under subparagraph (b), the importing Party shall undertake the approval process to allow trade from Pest Free Areas, Pest Free Places of Production, Pest Free Production Sites, or areas of low pest prevalence without undue delay;
(d) without prejudice to Article 5.11 (Emergency Measures), when establishing or maintaining phytosanitary measures, the importing Party shall take into account Pest Free Areas, Pest Free Places of Production, Pest Free Production sites, and areas of low pest prevalence established and maintained by the exporting Party;
(e) the importing Party retains the right to request additional information as provided for under subparagraph (b) from Pest Free Areas, Pest Free Places of Production, Pest Free Production Sites, or areas of low pest prevalence, and restrict or prohibit trade following an audit conducted in accordance with Article 5.9 (Audit) or in accordance with Article 5.11 (Emergency Measures);
(f) in the event that the importing Party does not approve or withdraws its approval for trade from Pest Free Areas, Pest Free Places of Production, Pest Free Production Sites, or areas of low pest prevalence, it shall notify its decision to the exporting Party as soon as possible, explaining the reasons for the rejection and, on request, hold consultations in accordance with Article 5.17 (Technical Consultations); and
(g) if verification activities are required by the importing Party, they shall be conducted in accordance with Article 5.9 (Audit) and take into account the biology of the pest and the commodity concerned.
4. The SPS Sub-Committee established under Article 30.9 (Sub-Committees – Institutional Provisions) may, while taking into account the SPS Agreement and IPPC guidelines, standards, and recommendations, define further details for the procedures set out in this Article.
Article 5.8. Risk Analysis
1. The Parties shall ensure that their sanitary and phytosanitary measures are based on the relevant international standards, guidelines, or recommendations, or if its sanitary and phytosanitary measures are not based on international standards, guidelines, or recommendations, that they are based on a risk analysis carried out in accordance with relevant provisions, including Article 5 of the SPS Agreement.
2. When conducting its risk analysis, each Party shall:
(a) take into account relevant guidance of the WTO SPS Committee and standards, guidelines, and recommendations of the IPPC and Codex; and
(b) ensure that a measure that is established is not more trade restrictive than necessary to achieve the appropriate level of protection, taking into account technical and economic feasibility.
3. If requested by the exporting Party, the importing Party shall provide its risk assessment within a reasonable period of time.
Article 5.9. Audit (2)
1. A Party may carry out audits to verify that all or part of the regulatory control programme of the exporting Party’s competent authority is functioning as intended. (3)
2. Each Party shall assist the other to carry out audit procedures.
3. Prior to the commencement of an audit, the competent authorities of the Parties shall discuss the rationale and mutually agree the objectives and scope of the audit, the criteria or requirements against which the exporting Party will be assessed, and any other relevant matter.
4. The Parties shall carry out those audits in accordance with the SPS Agreement, taking into account the relevant guidance of the WTO SPS Committee, international standards, guidelines, and recommendations of the Codex or the IPPC.
5. Each Party shall endeavour to limit the frequency and number of audit visits. In case of a subsequent audit related to the same product, the importing Party shall carry out an audit only in duly justified circumstances and provide the exporting Party with an explanation as to the reason for the audit.
6. The importing Party shall provide the exporting Party with the opportunity to comment in writing on the findings of any audit. The importing Party shall take these comments into account before reaching its conclusions and taking any action thereon. The importing Party shall, within a reasonable period of time, provide the exporting Party with a written report setting out its conclusions.