Title
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE SULTANATE OF OMAN
Preamble
PREAMBLE
The Government of the Republic of India ("India") and the Government of the Sultanate of Oman ("Oman");
hereinafter referred to individually as a "Party" and collectively as "the Parties";
RECOGNISING the Parties' strong, historic, and developing relationship, the friendly ties that exists between their people, and wishing to strengthen these links through the creation of a free trade area, thus establishing close and lasting relations;
CONSCIOUS of their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization, in a manner conducive to the development of regional and international cooperation, thereby contributing to the harmonious development and expansion of world trade;
ESTABLISH an agreement to address economic and strategic challenges and opportunities, and contribute to advancing their respective legislative priorities over time;
AIMING to establish a clear, transparent, and predictable legal framework that supports further expansion of trade;
DETERMINED to strengthen their economic and trade relations for their mutual benefit through trade liberalisation in goods and services;
AIMING to encourage the transfer of technology, strengthen their bilateral relationship, encourage the creation of new employment opportunities, raise living standards, and improve the general welfare of their people;
CONVINCED that the establishment of a free trade area will provide a more favourable climate for the promotion and development of economic and trade relations between the Parties;
INTENDING to facilitate trade by promoting efficient and transparent customs procedures that reduce costs and ensure predictability for their importers and exporters;
DETERMINED to support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;
RECOGNISING their right to regulate and to preserve the flexibility of the Parties to set legislative and regulatory priorities;
RECOGNISING FURTHER the need to protect legitimate public welfare objectives, such as health, safety, environmental protection, conservation of living or non-living exhaustible natural resources, integrity and stability of the financial system, and public morals, in accordance with the rights and obligations provided in this Agreement;
CONSCIOUS that a bilateral relationship between the Parties will contribute to trade expansion and promote greater regional economic integration, not only between the Parties but also in the region; and
CONVINCED that this Agreement will open a new era for the relationship between the Parties;
HAVE AGREED, as follows:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. Establishment of a Free Trade Area
The Parties, in conformity with the Decision of 28 November 1979 on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries (Enabling Clause), and Article V of GATS, hereby establish a free trade area in accordance with the provisions of this Agreement.
Article 1.2. Objectives
1. The objectives of this Agreement are:
(a) to strengthen and enhance trade and economic cooperation in the fields agreed between the Parties;
(b) to liberalise and facilitate trade between the Parties in accordance with the provisions of this Agreement;
(c) to improve the efficiency and competitiveness of the Parties' manufacturing and services sectors and to expand trade between the Parties, including joint exploitation of commercial and economic opportunities in non-Parties;
(d) to facilitate and enhance regional economic cooperation and integration; and
(e) to build upon the Parties' commitments at the WTO.
Article 1.3. General Definitions
For the purposes of this Agreement:
"Agreement" means the Comprehensive Economic Partnership Agreement between the Government of the Republic of India and the Government of the Sultanate of Oman;
"Customs Valuation Agreement" means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement;
"CTG" means the Committee on Trade in Goods established pursuant to Article 2.20 (Committee on Trade in Goods -Trade in Goods);
"days" means calendar days, including weekends and holidays;
"direct taxes" comprise all taxes on total income, on total capital or on elements of income or of capital, including taxes on gains from the alienation of property, taxes on estates, inheritances and gifts, and taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation; and also include the taxes covered under the Agreement between the Republic of India and the Sultanate of Oman for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, as amended by the Protocols thereto;
"DSU" means the Understanding on Rules and Procedures Governing the Settlement of Disputes, set out in Annex 2 to the WTO Agreement;
"GATS" means the General Agreement on Trade in Services, set out in Annex 1 B to the wro Agreement;
"GATT 1994" means the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the wro Agreement, and includes its notes and supplementary provisions;
"Harmonised System (HS)" means the Harmonised Commodity Description and Coding System, defined in the International Convention on the Harmonised Commodity Description and Coding System, including its General Rules of Interpretation, and legal notes which includes Section Notes and Chapter Notes, as adopted and implemented by the Parties in their respective laws;
"Import Licensing Agreement" means the Agreement on Import Licensing Procedures, set out in Annex 1A to the wro Agreement;
"Joint Committee" means the Joint Committee established pursuant to Article 15.1 (Joint Committee -Administration of the Agreement) of this Agreement; "measure" means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form;
"perishable goods" means goods that rapidly decay due to their natural characteristics, in particular in the absence of appropriate storage conditions;
"person" means either a natural person or a juridical person;
"Trade Facilitation Agreement" means the Agreement on Trade Facilitation, set out in Annex 1A to the WTO Agreement;
"SME" means small and medium-sized enterprises, including micro enterprises, and may be further defined, where applicable, according to the respective laws, regulations, or national policies of each Party;
"territory" means
(a) with respect to India, the territory of the Republic of India, in accordance with the Constitution of India, including its land territory, its territorial sea, and the airspace above it, and other maritime zones including the Exclusive Economic Zone and continental shelf over which the Republic of India has sovereignty, sovereign rights, or exclusive jurisdiction, in accordance with its laws and regulations in force and international law, including the United Nations Convention on the Law of the Sea, 1982.
(b) with respect to Oman, the territory of the Sultanate of Oman, the land, internal waters, territorial sea, air space under its sovereignty, and maritime areas, namely, the exclusive economic zone and the continental shelf, where the Sultanate of Oman exercises sovereign rights or jurisdiction in accordance with its domestic laws and the provisions of international law.
"WTO" means the World Trade Organization; and "WTO Agreement" means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh, on 15 April 1994.
Article 1.4. Geographical Scope
Unless otherwise provided, this Agreement shall apply to the territory of the Parties.
Article 1.5. Relation to other Agreements
1. The Parties reaffirm their rights and obligations with respect to each other under the WTO Agreement and other agreements to which the Parties are party.
2. In the event of any inconsistency between this Agreement and other agreements to which both Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
Article 1.6. Transparency
1. Without prejudice to Article 1.7 (Confidential Information), each Party shall publish or otherwise make publicly available their laws, regulations, judicial decisions and administrative rulings of general application, as well as their respective international agreements which may affect the operation of this Agreement.
2. Each Party shall, within a reasonable period of time, respond to specific questions and provide, upon request, information to each other on matters referred to in paragraph 1.
3. Each Party shall make available to the public the names and addresses of the competent authorities responsible for laws, regulations, administrative procedures, and administrative rulings.
4. The Parties shall endeavour to facilitate the provision of all information, published or otherwise, under paragraphs 1 through 3 in the English language, if a request is made by a person before the competent authority, within a reasonable period of time.
Article 1.7. Confidential Information
1. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information designated as confidential by the other Party.
2. Information provided in confidence pursuant to this Agreement shall be used only for the purposes specified by the Party providing the information and shall not be disclosed without the prior written permission of the Party providing the information, except to the extent that it may be required to be disclosed in the context of judicial or quasi-judicial proceedings. In such situations, the Party that has received the information shall notify in writing the other Party of the disclosure.
3. Notwithstanding paragraph 1, confidential information provided pursuant to this Agreement may be transmitted to a third party subject to the prior written consent of the Party providing the information.
4. Nothing in this Agreement shall be construed to require a Party to disclose, furnish, or allow access to confidential information, the disclosure of which would impede law enforcement of the Party, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of any economic operator.
CHAPTER 2 TRADE IN GOODS Article 2.1 Scope Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties. For the purposes of this Chapter: Article 2.2 Definitions "Customs Administration" means the authority that, according to the laws and regulations of each Party, is responsible for the administration and enforcement of the customs laws and regulations of that Party. For Oman, it shall be the Royal Oman Police, Directorate General of Customs and for India, it shall be the Central Board of Indirect Taxes and Customs; and "customs duty" refers to any duty or charge of any kind imposed in connection with the importation of a product, but does not include any: (a) charge equivalent to an internal tax imposed in conformity with Article Ill of the GATT 1994; (b) anti-dumping or countervailing duty that is applied consistently with the provisions of Article VI of the GA TT 1994, the Agreement on the Implementation of Article VI of the GA TT 1994, and the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement respectively, and; safeguard measures under Article XIX of the GATT 1994 and the Agreement on Safeguards in Annex 1A to the WTO Agreement; or (c) fee or other charge in connection with importation commensurate with the cost of services rendered in conformity with Article VIII of the GA TT 1994.
Article 2.3 National Treatment on Internal Taxation and Regulation 1. The Parties shall accord national treatment in accordance with Article 111 of the GATT 1994, including its interpretative notes. To this end, Article 111 of the GA TT 1994 and its interpretative notes are incorporated into and form part of this Agreement, mutatis mutandis. 2. The treatment to be accorded by a Party under paragraph 1 means, with respect to a sub-central level of government, treatment no less favourable than the most favourable treatment that sub-central level of government accords to any like, directly competitive, or substitutable goods, as the case may be, of the Party of which it forms a part. Article 2.4 Customs Duties 1. The Parties shall not nullify or impair any of the tariff concessions made by them under this Agreement, except as provided in this Agreement. 2. Upon the entry into force of this Agreement, India shall eliminate or reduce its customs duties applied on goods originating from Oman in accordance with Annex 2A (Schedule of Specific Tariff Commitments of India) and Oman shall eliminate or reduce its customs duties on goods from India in accordance with Annex 2B (Schedule of Specific Tariff Commitments of Oman). 3. Where and for so long as a Party's applied most favoured nation customs duty is lower than the rate calculated in accordance with Annex 2A (Schedule of Specific Tariff Commitments of India) or Annex 2B (Schedule of Specific Tariff Commitments of Oman), an importer may claim the lower most favoured nations customs duty and the Party shall apply the lower rate to the originating good of the other Party. Article 2.5 Classification of Goods and Transposition of Schedules 1. The classification of goods traded between the Parties shall be in conformity with the HS code and its amendments. Each Party shall ensure consistency in applying its laws and regulations on tariff classification of originating goods of the other Party.
2. Pursuant to paragraph 1, each Party shall ensure that the transposition of its tariff commitments, undertaken in order to implement Annex 2A (Schedule of Specific Tariff Commitments of India) or Annex 2B (Schedule of Specific Tariff Commitments of Oman) in the nomenclature of the revised HS Code following periodic amendments to the HS Code, is carried out without impairing or diminishing the tariff commitments set out in its Schedule of Tariff Commitments in Annex 2A (Schedule of Specific Tariff Commitments of India) or Annex 2B (Schedule of Specific Tariff Commitments of Oman). 3. The Parties shall publish such revisions in a timely manner. 4. Each Party shall, on the request of the other Party and within a reasonable period of time after receiving the request, provide the other Party with a brief explanation in response to any concerns raised regarding the transposition of its tariff commitments. Article 2.6 Temporary Admission 1. Each Party shall, in accordance with its laws and regulations, grant temporary admission free of customs duties for the following goods imported from the other Party regardless of their origin: (a) professional and scientific equipment and materials, including their spare parts, and goods for sports purposes, that are necessary for carrying out the business activity, trade, or profession of a person who qualifies for temporary entry pursuant to the laws of the importing Party; (b) goods intended for display or use at playgrounds, theatres, exhibitions, fairs or other similar events, including commercial samples, advertising materials including printed materials, films and recordings; (c) containers and pallets in use or to be used for refilling; (d) machinery and equipment for completion of projects or for conducting the experiments and tests relating to such projects, or for repair; and (e) goods entered for completion of processing. 2. A Party shall not impose any condition on the temporary admission of a good referred to in paragraph 1, other than to require that such good:
(a) be accompanied by a security deposit in an amount no greater than the customs duty or charges that would otherwise be owed on importation, releasable on exportation of the good; (b) be exported on the departure of the person referred to in subparagraph 1 (a) or within such period of time as is reasonably related to the purpose of temporary admission in accordance with the laws of a Party; (c) be capable of identification when exported; (d) not be sold or leased while in its territory; (e) not be imported in a quantity greater than is reasonable for its intended use; and (f) be otherwise admissible into the importing Party's territory under its laws. 3. If any condition that a Party imposes under paragraph 2 has not been fulfilled, that Party may apply the customs duty and any other charge that would normally be owed on importation of the good. 4. Each Party shall, at the request of the importer and for reasons deemed valid by its Customs Administration, extend the time limit for temporary admission beyond the period initially fixed. 5. Each Party shall relieve the importer of liability for failure to export a temporarily admitted good upon presentation of satisfactory proof to the Party's Customs Administration that the good has been destroyed within the original time limit for temporary admission or any lawful extension. A Party may condition relief of liability under this paragraph by requiring the importer to receive prior approval from the Customs Administration of the importing Party before the good can be so destroyed. 6. Each Party shall endeavour, through its Customs Administration and in accordance with its laws and regulations, to adopt and maintain procedures providing for the expeditious release of goods admitted under this Article. Article 2.7 Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials 1. Each Party shall, in accordance with its laws and regulations, grant duty�free entry to commercial samples of negligible value, and to printed
advertising materials, imported from the territory of the other Party, regardless of their origin, but may require that: (a) such samples be imported solely for the solicitation of orders for goods, or the solicitation of orders for services provided from the territory, of the other Party or a non-Party; or (b) such advertising materials be imported in packets that each contain no more than one copy of each such material and that neither such materials nor. packets form part of a larger consignment. Article 2.8 Goods Returned or Re-Entered After Repair or Alteration 1. Neither Party may apply a customs duty to a good, regardless of its origin, that re-enters its territory within 1 year after that good has been exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in its territory, except that a customs duty may be applied to the addition resulting from the repair or alteration that was performed in the territory of the other Party. 2. Neither Party may apply a customs duty to a good, regardless of its origin, admitted temporarily from the territory of the other Party for repair or alteration, provided such good is exported from the territory of the importing Party within 1 year of its entry. 3. For the purposes of this Article, "repair" or "alteration" means any operation or process undertaken on a good to remedy operational defects or material damage and entailing the re-establishment of the good to its original function, or to ensure its compliance with technical requirements for its use. Repair or alteration of a good includes restoring, renovating, cleaning, resterilising, maintenance, or other operation or process, regardless of a possible increase in the value of the good, that does not: (a) destroy a goad's essential characteristics or create a new or commercially different good; (b) transform an unfinished good into a finished good; or (c) change the function of a good.
4. The Parties shall commence a review of this Article within 2 years of the date of entry into force of this Agreement and, thereafter, every 3 years, or as the Parties agree otherwise. Article 2.9 Import and Export Restrictions Unless otherwise provided in this Agreement, neither Party shall adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GA TT 1994. To this end Article XI of GATT 1994 is incorporated into and made part of this Agreement, mutatis mutandis. Article 2.10 Import Licensing 1. Each Party shall ensure that all automatic and non-automatic import licensing procedures are implemented in a transparent and predictable manner and applied in accordance with the Import Licensing Agreement. 2. Each Party shall adopt, maintain, or administer its import licensing procedures in a manner consistent with Articles 1 through 3 of the Import Licensing Agreement. 3. A Party that institutes licensing procedures or makes changes to existing licensing procedures, shall notify the other Party of such procedures within 60 days of publication. The notification shall include the information specified in Article 5.2 of the Import Licensing Agreement. A Party shall be deemed to be in compliance with this provision if it has notified the relevant import licensing procedure, or any modifications thereof, to the Committee on Import Licensing provided for in Article 4 of the Import Licensing Agreement. 4. Upon request of a Party, the other Party shall promptly provide any relevant information specified in Article 5.2 of the Import Licensing Agreement, regarding any import licensing procedure that it has adopted or maintains, and wherever feasible the procedures that it intends to adopt, or changes to existing licensing procedures. 5. Nothing in this Article shall be construed in a manner that would require a Party to grant an import license.
6. If a Party denies an import license application with respect to a good of the other Party, it shall, on request of the applicant and within a reasonable period after receiving the request, provide the applicant with a response unless that information is not publicly available and accessible. Article 2.11 Customs Valuation Each Party reaffirms its commitment to the provisions of Part I and Annex I of the Customs Valuation Agreement for determining the customs value of the goods traded between the Parties. Article 2.12 Subsidies The rights and obligations of the Parties relating to subsidies and countervailing measures shall be governed by Articles VI and XVI of the GA TT 1994 and the Agreement on Subsidies and Countervailing Measures, set out in Annex 1A to the WTO Agreement. Article 2.13 Transparency Article X of the GA TT 1994 is incorporated into and forms part of this Agreement, mutatis mutandis. Article 2.14 Restrictions to Safeguard the Balance-of-Payments 1. The Parties shall endeavour to avoid the imposition of restrictive measures for balance-of-payments purposes. 2. Any such measures taken for trade in goods shall be in accordance with Article XII of the GATT 1994 and the Understanding on the Balance-of-Payments Provisions of the General Agreement on the Tariffs and Trade 1994, the provisions of which are incorporated into and form part of this Agreement, mutatis mutandis.
Article 2.15 Administrative Fees and Formalities 1. Each Party shall ensure, in accordance with Article Vlll:1 of the GA TT 1994 and its interpretive notes and Article 6 of the Trade Facilitation Agreement, that all fees and charges of whatever character (other than import and export duties, charges equivalent to an internal tax or other internal charges applied consistently with Article 111:2 of the GA TT 1994, and anti-dumping and countervailing duties applied pursuant to its laws and regulations) imposed by that Party on, or in connection with, importation or exportation, are limited in amount to the approximate cost of services rendered to imports or exports and do not represent a direct or indirect protection for domestic goods or a taxation of imports for fiscal purposes. 2. Each Party shall promptly publish details and shall make such information available on the internet regarding the fees and charges it imposes in connection with importation or exportation and shall make such information available to the other Party, upon written request, in the English language. Article 2.16 Non-Tariff Measures 1. Neither party shall adopt or maintain any non-tariff measures on the importation of any goods of the other Party or on the exportation of any goods destined for the territory of the other Party except in accordance with its rights and obligations under Annex 1 A of the WTO Agreement or in accordance with other provisions of this Agreement. 2. Each Party shall ensure that the non-tariff measures under paragraph 1 are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to trade in goods between the Parties. Article 2.17 State Trading Enterprises Nothing in this Agreement shall be construed to prevent a Party from maintaining or establishing a state trading enterprise in accordance with Article XVII of the GATT 1994 and the Understanding on the Interpretation of Article XVII of the General Agreement on the Tariffs and Trade 1994.
Article 2.18 Revision Clause 1. Upon request of a Party, the Parties shall consult to consider accelerating, or broadening the scope of the elimination of customs duties as set out in Annex 2A (Schedule of Specific Tariff Commitments of India) and Annex 2B (Schedule of Specific Tariff Commitments of Oman). Further commitments between the Parties to accelerate the elimination of a customs duty on a good, or to include a good in Annex 2A (Schedule of Specific Tariff Commitments of India) and Annex 2B (Schedule of Specific Tariff Commitments of Oman), shall supersede any duty rate or staging category determined pursuant to their respective Schedules of Tariff Commitments. These commitments shall enter into force on the date specified by the Parties following the exchange of notifications certifying that they have completed their internal legal procedures. 2. Nothing in this Agreement shall prohibit a Party from unilaterally accelerating or broadening the scope of the elimination of customs duties set out in its Schedule of Tariff Commitments in Annex 2A (Schedule of Specific Tariff Commitments of India) or Annex 2B (Schedule of Specific Tariff Commitments of Oman). Any such unilateral acceleration or broadening of the scope of the elimination of customs duties will neither permanently supersede any duty rate or staging category determined pursuant to their respective Schedule nor will serve to waive that Party's right to impose at a later time the duty rate or staging category that is determined for that later time by their respective Schedule. 3. For greater certainty with respect to paragraph 2, a Party may: (a) raise a customs duty back to the level established in its respective Schedule of Tariff Commitments in Annex 2A (Schedule of Specific Tariff Commitments of India) or Annex 28 (Schedule of Specific Tariff Commitments of Oman) following a unilateral reduction; or (b) maintain or increase a customs duty as authorised by the Dispute Settlement Body of the wro. Article 2.19 Exchange of Data~ 1. The Parties recognise the value of trade data in accurately analysing the implementation of this Agreement. The Parties shall cooperate with a
view to conducting periodic,exchanges of data relating to trade in goods between the Parties. 2. The Parties may engage in such periodic exchanges within the CTG for such purposes and for any other purposes in furtherance of the obligations described in this Chapter as the CTG may determine. 3. A Party shall give positive consideration to a request from the other Party for technical assistance for the purposes of the exchange of data under paragraph 1. Article 2.20 Committee on Trade in Goods 1. The Parties hereby establish CTG under the Joint Committee. 2. The functions of the CTG shall include: (a) the monitoring and review of measures taken and implementation of commitments under this Chapter; (b) the exchange of information and review of developments; (c) the preparation of technical amendments, including HS Code updating, and otherwise assisting the Joint Committee; (d) any other matter referred to it by the Joint Committee; and (e) the preparation of recommendations and reports to the Joint Committee, as necessary. 3. The CTG shall establish such subcommittees as may be necessary under this Agreement, including on Customs Procedures and Trade Facilitation, Technical Barriers to Trade, Sanitary and Phytosanitary Measures, Rules of Origin and Trade Remedies. All such subcommittees shall report to the CTG. 4. Each Party has the right to be represented in the CTG. The CTG shall act by consensus. 5. The CTG shall meet annually or more frequently as the Parties agree otherwise. The meetings of the CTG shall be chaired jointly by Oman and India. 6. The Parties shall examine any difficulties that might arise in their trade in goods and shall endeavour to seek appropriate solutions through dialogue and consultations.
CHAPTER 3 RULES OF ORIGIN For the purposes of this Chapter: Article 3.1 Definitions "aquaculture" including mariculture, means the farming of aquatic organisms including fish, molluscs, crustaceans, other aquatic invertebrates, and aquatic plants, from seed stock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production, such as, regular stocking, feeding, protection from predators; "carrier" means any vehicle for air, sea, or land transport. However, the carriage of product can be made through multimodal transport; "CIF value" means the price actually paid or payable to the exporter for a product when the product is loaded out of the carrier, at the port of importation, including the cost of the product, insurance, and freight necessary to deliver the product to the named port of destination. The valuation shall be made in accordance with Article VII of the GATT 1994 and the Customs Valuation Agreement; "competent authority" refers to: (a) for exports from India, the Department of Commerce or any other agency notified from time to time; and for imports into India, the Central Board of Indirect Taxes and Customs (CBIC) or any other agency notified from time to time; and (b) for Oman, Ministry of Commerce, Industry and Investment Promotion; and Directorate General of Customs, Royal Oman Police or any other authority notified from time to time; "Customs Administration" refers to: (a) for India, the CBIC or its successor of such customs administration; and (b) for Oman, Directorate General of Customs, Royal Oman Police or its successor of such customs administration; "customs value" means the value of a product as determined in accordance with Article VII of the GATT 1994, including its notes and
supplementary provisions thereof, and the Customs Valuation Agreement; "Ex Works price" means the price paid for the product ex-works to the producer in the Party where the last working or processing is carried out, provided the price includes the value of all the materials used; "Free-On-Board (FOB) value" means the price actually paid or payable to the exporter for a product when loaded onto the carrier at the named port of exportation, including the cost of the product, and all costs necessary to bring the product onto the carrier; "Fungible products or materials" means products or materials that are interchangeable for commercial purposes and whose properties are essentially identical; "generally accepted accounting principles (GAAP)" means the recognised consensus of substantial authoritative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information and the preparation of financial statements. These principles may encompass broad guidelines of general application as well as detailed standards, practices, and procedures; "indirect material" means a material used in the production, testing, or inspection of a product, or a material used in the maintenance of buildings, or the operation of equipment associated with the production of a product but not physically incorporated into the product, including: (a) fuel and energy; (b) tools, dies and moulds; (c) spare parts and materials used in maintenance of equipment and buildings; (d) lubricants, greases, and compounding materials used in production or used to operate equipment and buildings; (e) gloves, glasses, footwear, clothing, safety equipment and supplies; (f) equipment, devices, and supplies used for testing or inspecting of products; (g) catalysts and solvents; and
(h) any other material that is not incorporated into the product but for which the use in the production of the products can be reasonably demonstrated to be a part of that production; "issuing authority" refers to the government authority(ies) or agency(ies) identified and designated by the competent authority of each Party for issuance of the certificate of origin, notified before the entry into force of the Agreement and as amended from time to time; "juridical person" means any legal entity duly constituted or otherwise organised under the applicable laws and regulations, whether for profit or otherwise, and whether privately-owned or government-owned, including any corporation, trust, partnership, joint venture, sole proprietorship, or association; "manufacture" refers to any kind of working or processing, or specific operations; "material" means any ingredient, raw input, component or part that is used in the production of a product or physically incorporated into it; "non-originating material" means any materials whose country of origin is a country other than the Parties (imported non-originating), any materials whose origin cannot be determined (undetermined origin) or a material that does not qualify as originating in accordance with this Chapter; "originating material" means materials that qualify as originating in accordance with this Chapter; "preferential tariff treatment" means the customs duty rate applicable to an originating product, pursuant to each Party's Schedule in Annex 2A (Schedule ,of Specific Tariff Co.mmitments of India) and Annex 2B (Schedule of Specific Tariff Commitments of Oman); "producer" means a person who engages in the production of a product; "product" means that which is obtained by growing, raising, mining, harvesting, fishing, aquaculture, trapping, hunting, extracting or manufacturing, even if it is intended for later use in another manufacturing operation; "production" refers to growing, cultivating, raising, mining, harvesting, picking, breeding, extracting, gathering, collecting, fishing, farming, aquaculture, trapping, hunting, capturing, manufacturing and processing, assembling a product or any combination thereof;
1. "tariff classification" means the classification of a product according to the HS, including its General Interpretative Rules and Explanatory Notes thereof; "territorial sea" means waters extending up to 12 nautical miles from the baseline as defined by the Parties, in accordance with the United Nations Convention on the Law of the Sea, 1982; and "value of non-originating materials" means the customs value at the time of importation of the non-originating materials used, i.e., the CIF value or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the territory of a Party. Article 3.2 Application and Interpretation For the purposes of this Chapter: (a). the basis for tariff classification is the HS; and (b) any cost and value referred to in this Chapter, shall be recorded and maintained in accordance with the GAAP applicable in the territory of the Party in which the product is produced. Article 3.3 Origin Criteria 1. For the purposes of this Agreement, a product shall be deemed as originating in a Party and shall be eligible for preferential treatment provided it: (a) is wholly obtained or produced in the territory of the Party as per Article 3.4 (Wholly Obtained or Produced Product); or (b) has undergone sufficient working or production as per the Product Specific Rules (PSR) in Annex 38 (Product Specific Rules). 2. The producer has the option to use either of the following two methods of computing the value addition criteria of a product in the PSR in Annex 38 (Product Specific Rules): (a) Build-down Method (FOB value or Ex Works price) -(Value of Non Originating Materials) VA=-----------------------X 100 FOB value or Ex Works Price
(b) Build-up Method Value of Originating Material + direct labour cost+ direct overhead cost VA=-----------------------X 100 FOB value or Ex Works Price "VA" means the value addition in a product, expressed as a percentage. 3. In case of build-down method, the value of the non-originating materials shall be: (a) the CIF value at the time of importation of the materials; or (b) the earliest ascertained price paid for the materials of undetermined origin in the territory of the Party where the working or processing takes place. 4. In case of build-up method: (a) value of originating material shall consist of: (i) cost of materials; (ii) freight and insurance. (b) direct labour cost shall include: (i) wages; (ii) remuneration; (iii) other employee benefits associated with the manufacturing process. (c) direct overhead cost shall include, but not limited to: (i) real property items associated with the production process (insurance, factory rent and leasing, depreciation on buildings, repair and maintenance, taxes, and interests on mortgage); (ii) leasing of and interest payments for plant and equipment; (iii) factory security; (iv) insurance (plant, equipment and materials used in the manufacture of the products); (v) utilities (energy, electricity, water and other utilities directly attributable to the production of the product); (vi) research, development, design and engineering;
(vii) dies, moulds, tooling and the depreciation, maintenance and repair of plant and equipment; (viii) royalties or licenses (in connection with patented machines or processes used in the manufacture of the product or the right to manufacture the product); (ix) inspection and testing of materials and the products; (x) storage and handling in the factory; (xi) disposal of recyclable wastes; (xii) cost elements in computing the value of raw materials, i.e., port and clearance charges and import duties paid for the dutiable component. 5. Notwithstanding paragraph 1, the final manufacture before export must have occurred in the exporting Party. Article 3.4 Wholly Obtained or Produced Product 1. For the purposes of this Chapter, the following products shall be considered as being wholly obtained or produced in the territory of a Party: (a) plant and plant products, including fruits, flowers, vegetables, trees, seaweed, fungi, algae and live plants, grown, cultivated, harvested, picked or gathered there; (b) live animals born and raised there; (c) products obtained from live animals born or raised there; (d) mineral products and natural resources extracted or taken from that Party's soil, waters, seabed or subsoil beneath the seabed; (e) product obtained from hunting, trapping, fishing or aquaculture, gathering, or capturing conducted there; (f) product of sea fishing and other marine products taken from outside its territorial sea by a vessel or produced by a factory ship registered, recorded or licensed with a Party and flying its flag; (g) product, other than products of sea fishing and other marine products, taken or extracted from the seabed or the subsoil of the continental shelf or the exclusive economic zone of any of the Parties;
(h) waste or scrap (excluding precious metals) resulting from consumption or manufacturing operations conducted in the territory of that Party, fit only for disposal or recovery of raw materials; and (i) product produced in the territory of that Party exclusively from product referred to in subparagraphs (a) through (h). Article 3.5 De Minimis 1. Notwithstanding paragraph 1 of Article 3.3 (Origin Criteria), non�originating materials that do not meet the required change in tariff classification (CTC), if applicable in the product specific rule (PSR), shall be deemed originating if: (a) their total value does not exceed 10% of the FOB value or Ex Works price of the exported product; or (b) in the case of textiles and clothing under chapters 50-63 of the HS, the weight of the non-originating material is less than 10% of the total weight of the materials used in the production of the exported product or 10% of the FOB value or Ex Works price. 2. In the case of a wholly obtained product, a de minimis value not exceeding 10% of the FOB value or Ex Works price of the exported product is allowed. 3. For the purpose of paragraph 1, the de minimis availed under this Article shall be included in the determination of the value of non-originating materials for arriving at the applicable VA as set out in Annex 3B (Product Specific Rules). Article 3.6 Minimal or Insufficient Operations and Processes 1. Notwithstanding any provisions in this Chapter, a product shall not be considered originating in a Party merely by undergoing any one or more of the following operations on non-originating materials in the territory of that Party: (a) operations to ensure the preservation of products in good condition during transport, and storage (such as drying, freezing or thawing, keeping in brine, removal of damaged parts) and other similar operations;
(b) changes of packaging and breaking up and assembly of packages; (c) washing, cleaning, and removal of dust, oxide, oil, paint or other coverings; (d) simple1 combining operations, labelling, pressing, cleaning or dry cleaning, packaging operations, or any combination thereof; (e) cutting to length or width and h_emming, or stitching or over locking of fabrics which are readily identifiable as being intended for a particular commercial use; (f) for textiles: trimming or joining together by sewing looping, linking or attaching accessory articles such as straps, bands, beads, cords, rings and eyelets; ironing or pressing; (g) simple painting and polishing; (h) husking, partial or total bleaching, polishing, and glazing of cereals and rice; (i) operations to colour sugar or form sugar lumps; U) peeling and removal of stones and shells from fruits, nuts and vegetables; (k) unflaking, crushing, squeezing, slicing, macerating and removal of bones; (I) sharpening, simple grinding or simple cutting and repackaging; (m) simple operations such as removal of dust, sifting, screening, sorting, classifying, grading, matching, slitting, bending, coiling or uncoiling; (n) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations; (o) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging; (p) simple mixing of products, whether or not of different kinds; (q) mere dilution with water or another substance that does not materially alter the characteristics of the product; 1 For the purposes of this Article, "simple" describes an activity which needs neither special skills nor machines, apparatus or equipment especially produced or installed to carry out the activity.
(r) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts; (s) slaughter of animals; or (t) simple testing, calibration, inspection or certification. 2. Operations or processes as set out in paragraph 1 of Article 3.3 (Origin Criteria) may be considered while determining eligibility of a product for preferential treatment to the extent s~fficient working or production on a product includes operations or processes other than those listed in paragraph 1, or is in combination with operations or processes listed in paragraph 1. 3. Each Party shall provide that a product shall not be considered to be an originating product merely by reason of a production or pricing practice in respect of which it may be demonstrated, on the basis of a preponderance of evidence, that the object was to circumvent the provisions of this Chapter. Article 3.7 Bilateral Cumulation 1. Originating products from the territory of a Party that are used in the production of a product in the territory of the other Party as materials for finished products shall be considered as materials originating in the territory of the other Party where the manufacture of the finished product has taken place. 2. Notwithstanding paragraph 1, the last production process should be beyond the minimal or insufficient operations as described in Article 3.6 (Minimal or Insufficient Operations and Processes). Article 3.8 Packages, Packing Materials and Containers 1. The packages, packing materials and containers for retail sale in which a product is packed for retail sale, when classified together with the product according to Rule 5(b) of the General Rule for the Interpretation of the Harmonised System, shall be disregarded in determining whether all non-originating materials used in the manufacture of a product undergo a CTC applicable to the said product. 2. Wherever such a product is subject to value addition, the value of the packages, packing materials and containers for retail sale in which a
product is packed for retail sale shall be taken into account as originating or non-originating, as the case may be, in calculating the value addition for the product. 3. The containers and packing materials exclusively used for the transport or shipment of a product shall not be taken into account in determining the origin of the product. Article 3.9 Accessories, Spare Parts or Tools 1. Each Party shall provide that accessories, spare parts, or tools classified and delivered with a product that forms a part of the product's standard accessories, spare parts, or tools as per standard trade practice, shall be considered as originating and part of the product in question. However, this is contingent on the following: (a) the accessories, spare parts, or tools are not invoiced separately from the product; (b) the quantities and value of the accessories, spare parts, or tools are customary for the product; and (c) the value of the accessories, spare parts, or tools shall be taken into account as originating or non-originating materials, as the case may be, in calculating the value addition of the product in accordance with Article 3.3 (Origin Criteria). Article 3.10 Indirect Materials An indirect material shall be considered to be originating without regard to where it is produced. Article 3.11 Accounting Segregation 1. Each Party shall provide that the determination of whether fungible products or materials are originating products shall be made ordinarily by physical segregation of each product or material; or, in case of any difficulty, an inventory management method, such as averaging, last-in, first-out, or first-in, first out, recognised in the GAAP of the Party in which
the production is performed, or otherwise accepted by the Party in which the production is performed. 2. The inventory management method shall continue to be used for those fungible products or materials throughout the fiscal year of the Party and shall be recorded, applied and maintained in accordance with the GAAP applicable in the Party in which the product is manufactured. The inventory management method chosen must: (a) permit a clear distinction to be made between originating and non�originating materials including materials of undetermined origin acquired or kept in stock; and (b) guarantee over the relevant accounting period of 12 months that no more products receive originating status than would be the case if the materials had been physically segregated. 3. A producer using an inventory management system shall keep records of the operation of the system that are necessary for the competent authority of the Party concerned to verify compliance with the provisions of this Chapter. 4. The competent authority may require from its exporters that the application of the method for managing stocks as provided for in this Article will be subject to prior authorisation. Article 3.12 Direct Consignment 1. The originating product of a Party shall be deemed to meet the direct consignment criteria under this Chapter when they are: (a) transported directly from the territory of that Party to the territory of the other Party; or (b) transported through the territory or territories of one or more non�Parties for the purpose of transit in such territory or territories, provided that: (i) the products remain under customs control in the territory of a non-Party and have not entered the trade or consumption in the non-Party; (ii) the products do not undergo operations other than unloading, reloading or operations necessary to preserve them in good condition; and
(iii) the transit entry is justified for geographical reason and by considerations related exclusively to transport requirements. 2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing Party, on request, by the production of bill of lading/airway bill and any other relevant transport document covering the passage from the exporting Party to the importing Party, including through the country of transit where applicable. 3. An importer shall, upon request, provide a certificate issued by the customs authorities of the country of transit mentioning the following information: (a) giving an exact description of the products; (b) stating the dates of unloading and reloading of the products and, where applicable, the names of the ships, or the other means of transport used; and (c) certifying that the products remained under customs control in the territory of the non-Party, and did not enter into trade or commerce in the non-Party. Article 3.13 Proof of Origin 1. For products originating in a Party and otherwise fulfilling the requirements of this Chapter, the proof of origin of an exported product shall be provided through any of the following means: (a) a Certificate of Origin in electronic or hard copy format issued by issuing authority referred to in Article 3.14 (Certificate of Origin and Certification Procedures), signed and stamped by the exporter, electronically or otherwise: (i) till the system of electronic signing and stamping is instituted for the exporter by either party, the exporter should manually append the signature and stamp on the printed Certificate of Origin issued by the issuing authority; and (ii) in case the electronic Certificate of Origin cannot be issued by the issuing authority due to technical difficulties, a printed Certificate of Origin, issued with the official stamp of the issuing authority;
(b) a fully digitised Certificate of Origin (e-certificate) issued by issuing authority and exchanged by a mutually developed electronic system in accordance with Article 3.33 (Exchange of Electronic Data on Origin); or (c) an origin declaration, when agreed by the Parties, in accordance with Article 3.34 (Origin Declaration). 2. A Certificate of Origin shall be valid for 12 months from the date of issue in the exporting Party. 3. The Certificate of Origin shall be submitted to the Customs Administration of the importing Party in accordance with the procedures applicable in that Party. Article 3.14 Certificate of Origin and Certification Procedures 1. The Certificate of Origin shall be as per the format in Annex 3C (Certificate�of Origin Template). 2. The Certificate of Origin shall be in the English language. 3. The Certificate of Origin shall bear a unique, sequential serial number separate for each office of issuance and affixed by the issuing authority in the exporting Party. In case of issuance of electronic Certificate of Origin, it shall bear a QR code as well. 4. The Certificate of Origin .will be issued by the issuing authority of each Party. It shall bear the official stamp of the issuing authority. 5. The Certificate of Origin shall be valid for only one import declaration and may include one or more products. 6. The nu_mber and date of t~e commercial invoice or any other relevant documents shall be indicated in the box reserved for this purpose in the Certificate of Origin. 7. The Certificate of Origin shall be submitted within its validity period. 8. In exceptional circumstances, the Certificate of Origin may be accepted by the Customs Administration of the importing Party for the purpose of granting preferential tariff treatment even after the expiry of its validity, provided 'that the failure t~ observe th~ time limit 'results from force majeure or other valid reasons beyond the control of the exporter and the products have been imported before the expiry of the validity period of the said Certificate of Origin. 41 ?
9. The Certificate of Origin shall be forwarded by the exporter to the importer. The customs authorities may require the original copy in case of manual issuance of Certificate of Origin. 10. Neither erasures nor superimposition shall be allowed on the Certificate of Origin. A new certificate of origin may be issued to replace the erroneous one. 11. The Certificate of Origin shall be issued either prior to, or within 5 working days from the date of exportation. However, under exceptional cases, where a Certificate of Origin has not been issued prior to, or within 5 working days from the date of exportation due to involuntary errors or omissions, or any other valid reasons, the Certificate of Origin may be issued retrospectively, bearing the words "ISSUED RETROSPECTIVELY" in box 4 of the Certificate of Origin, with the issuing authority also recording the reasons in writing on the exceptional circumstances due to which the certificate was issued retrospectively. The Certificate of Origin can be issued retrospectively within 12 months from the date of shipment. . 12. In the event of theft, loss or destruction of a physical copy of the Certificate ~ of Origin, the producer, exporter or their authorised representative may apply in writing to the issuing authority for a certified true copy of the original Certificate of Origin made on the basis of the export documents in their possession bearing the endorsement of the words "CERTIFIED TRUE COPY" (in lieu of the original certificate) and the date of issuance of the original Certificate of Origin. The certified true copy of a Certificate of Origin shall be issued within the validity period of the original Certificate of Origin. The exporter shall immediately notify the theft, loss or destruction and undertake not to use the original Certificate of Origin for exports under this Agreement to the competent authority. 13. Minor discrepancies between the Certificate of Origin and the documents submitted to the Customs Administration at the port of importation for the purpose of carrying out the formalities for importing the products shall not ipso facto invalidate the Certificate of Origin, if such Certificate of Origin corresponds to the products under importation. Minor discrepancies include typing errors or formatting errors, subject to the condition that these mi.nor errors do not affect the authenticity of the Certificate of Origin or the accuracy of the information included in the Certificate of Origin. For greater clarity, discrepancies in the specimen stamps of the issuing authority shall not be regarded as minor discrepancies.
Article 3.15 Third-party Invoicing 1. An importing Party shall not deny a claim for preferential tariff treatment for the sole reason that an invoice was not issued by the exporter or producer of a product, provided that it meets the requirements in this Chapter. 2. The exporter of the products shall indicate "third-party invoicing" and such information as name, address,. invoice date and number, and the country of the company issuing the invoice shall appear in box 7 of the Certificate of Origin as per the format in Annex 3C (Certificate of Origin Template). Article 3.16 Authorities 1. The Certificate of Origin shall be issued by an issuing authority of a Party. 2. Each Party shall inform the competent authorities and the Customs Administration of the other Party of the names and addresses of the officials of the issuing authority designated to issue Certificates of Origin under this Chapter. 3. The Parties shall exchange specimen stamps of the authorities issuing the Certificate of Origin. 4. Each Party shall intimate the name, designation and contact details (address, phone number and e-mail) of its authorities: (a) to whom the specimen stamps of the issuing authorities of the other Party should be� communicated: (i) India: CBIC, Department of Revenue, Government of India. (ii) Oman: Ministry of Commerce, Industry and Investment Promotion or any other relevant authority as notified by Oman. (b) to whom the references of verification of the Certificate of Origin issued by the Party, should be addressed: (i) India: Department of Commerce, Government of India. (ii) Oman: Ministry of Commerce, Industry and Investment Promotion.
(c) from whom the specimen stamps of the issuing authority of the other Party would be received: (i) India: Department of Commerce, Government of India. (ii) Oman: Ministry of Commerce, Industry and Investment Promotion. (d) from whom references would emanate for verification of the Certificate of Origin issued by the other Party: (i) India: CBIC, Department of Revenue, Government of India. (ii) Oman: Ministry of Commerce, Industry and Investment Promotion. 5. Any change in the officials' stamps shall be promptly informed to the other Party. 6. Each Party shall, within .30 days of the date of ei:itry into for.ce of this Agreement for that Party, designate one or more contact points within its competent authority for the implementation of this Chapter and shall notify the other Party of the contact details of that contact point or those contact points. Each Party shall promptly notify the other Party of any change to those contact details. 7. Any changes in authorities or agencies shall be promptly notified to the other Party. Such changes shall come into effect after 30 days from the date of receipt of the notice by the other Party (the receiving Party). The receiving Party shall acknowledge the receipt of such notice within 7 days of th'e receipt of the notice. Article 3.17 Application for Certificate of Origin 1. For the issuance of a Certificate of Origin, the final producer or exporter of the product shall present, or submit electronically to the issuing authority of the exporting Party, in accordance with the procedure laid down by each Party's laws and regulations, the following: (a) an application to the issuing authority together with the appropriate supporting documents for proving origin; (b) set of minimum information requirements referred to in Annex 3A (Minimum Required Information) in whichever form or format as
may be required by the issuing authority and in consonance with the description in the invoice; (c) the corresponding commercial invoice or other documents necessary to establish the origin of the product; and (d) the HS code, description, quantity and value of exported product if the same has already not been provided for. 2. Multiple items declared on the sa,:ne Certificate of Origin, shall be allowed, provided that each item qualifies separately in its own right. 3. The issuing authority may apply a risk management system in order to selectively conduct pre-export verification of the minimum required information filed by an exporter or producer. The verification may, at the discretion of the issuing authority, include methods such as obtaining detailed cost sheets, and conducting a factory visit. Article 3.18 Record Keeping 1. The issuing authorities shall keep the minimum required information and supporting documents for a period not less than 5 years from the date of issuance of the Certificate of Origin. 2. The importer shall keep records relevant to the importation in accordance with the laws and regulations of the importing Party. The application for Certificates of Origin and all documents related to such application shall be retained by the issuing authority for not less than 5 years from the date of issue. 3. The records in paragraphs 1 and 2 may include electronic records and shall be maintained in accordance with the laws and regulations of each Party. Article 3.19 Obligations of the Exporter or Producer 1. The exporter or producer shall submit the minimum required information, as referred in paragraph 1 (b) of Article 3.17 (Application for Certificate of Origin), and supporting documents for the issue of the Certificate of Origin as per the procedures followed by the issuing authority in the exporting Party only in cases where a product conforms to the Rules of Origin provided in this Chapter.
2. Any exporter or producer who falsely represents any material information relevant to the determination of origin of a product shall be liable to be penalised under the laws and regulations of the exporting Party. 3. The exporter or producer shall keep the minimum required information, as referred in subparagraph 1 (b) of Article 3.17 (Application for Certificate of Origin), and supporting documents for a period not less than 5 years from the date of issuance of the Certificate of Origin or the date of export, whichever is earlier. 4. For the purpose of the determination of origin, the exporter or producer applying for a Certificate of Origin or Origin Declaration under this Chapter shall maintain appropriate commercial accounting records for the production and supply of products (as well as relevant records and documents from the suppliers) qualifying for preferential treatment and keep all commercial and customs documentation relating to the material used in the production of the product, including breakup of costs relating to material, labour, other overheads, ,and any other relevant elements -. ~uch as profits and related components for at least 5 years from the date of issuance of the Certificate of Origin or the date of export, whichever is earlier. The exporter or producer shall promptly, upon request of the competent authority of the exporting Party, where the Certificate of Origin has been issued, make available records for inspection to enable verification of the origin of the product. 5. The exporter or producer shall not deny any request for a verification visit, agreed between the competent authority of the exporting Party and the competent authority of the importing Party, under the terms of Article 3.21 (Verification of Certificates of Origin). Any failure to consent to a verification visit shall be grounds for a denial of preferential tariff treatment claimed under this Agreement. 6. If the exporter or producer has reason to believe that the Certificate of Origin is based on incorrect information that could affect the accuracy or validity of the Certificate of Origin, they shall be obliged to immediately notify the issuing authority or competent authority in writing of any change affecting the originating status of each product to which the Certificate of Origin applies. Article 3.20 Presentations of the Certificate of Origin 1. For the purposes of claiming preferential tariff treatment, the importer or its authoris~d representative shall submit 'to the Customs Administration of the importing Party, at the time of filing import declaration, the
Certificate of Origin including supporting documentation and other documents as required, in accordance with the laws and regulations of the importing Party. 2. If a claim for preferential treatment 1s made without producing the original copy of the Proof of Origin as referred to in Article 3.14 (Certificate of Origin and Certification Procedures), the Customs Administration of the importing Party may deny preferential tariff treatment and request a guarantee in any of its modalities or may take any action necessary in order to preserve fiscal interests, as a pre-condition for the completion of the importation operations subject to and in accordance with the laws, regulations and procedures of the importing Party. 3. Each Party shall, in accordance with its laws and regulations, provide for a refund of any excess duties paid as a result of the product not having been accorded preferential treatment if a product would have qualified as an originating product when it was imported into the territory of that Party. The importer of the product may, within a period of 1 year from the date of importation or the period as specified by the laws of the importing Party, apply for a�refund of any excess duties paid as a� result of the product not having been accorded preferential treatment at the time of importation, provided that the importer formally declares to the Customs Administration of the importing Party that the product in question qualified as an originating product in accordance with the importing Party's laws and regulations. 4. Each Party shall provide that if the importer has reason to believe that the claim for preferential tariff treatment is based on incorrect information that could affect the accuracy or validity of the Certificate of Origin, the importer shall correct the importation document, and pay any customs duty and, if applicable, penalties owed. Article 3.21 Verification of Certificates of Origin 1. For the purpose of determining the authenticity and the correctness of the information given in the Certificate of Origin, the importing Party may conduct verification by means of: (a) requests for information from the importer; (b) requests for assistance from the competent authority of the exporting Party as provided for in paragraph 2;
(c) written questionnaires to an exporter or a producer in the territory of the other Party through the competent authority of the exporting Party; (d) in exceptional circumstances, visits to the premises of an exporter or a producer in the territory of the other Party; or (e) such other procedures as the Parties may agree. 2. For the purposes of subparagraph 1 (b), the competent authority of the importing Party, in accordance with its laws and regulations: (a) may request, in writing, from the competent authority of the exporting Party to assist it in verifying: (i) the authenticity of a Certificate of Origin; (ii) the accuracy of any information contained in the Certificate of Origin; or (iii) the authenticity and accuracy of the information and documents, including breakup of costs relating to material, labour, other overheads and any other relevant elements such as profits and related components which are relevant to the origin determination of the product under Article 3.3 (Origin Criteria); (b) shall provide the competent authority of the exporting Party with: (i) the reasons why such assistance is sought; (ii) the Certificate of Origin, or a copy thereof; and (iii) any information and documents as may be necessary for the purpose of providing such assistance. 3. In so far as possible, the competent authority of the importing Party conducting a verification shall seek necessary information or documents relating to the origin of imported product from the importer, in accordance with its laws and regulations, before making any request to the competent authority of the exporting Party for verification. 4. In cases where the competent authority of the importing Party deems it necessary to ? seek a verification from the competent authority of the exporting Party, it shall specify in its written request whether the verification is on a random basis, or the veracity of the information is in doubt. In case the determination of origin is in doubt, the competent authority of the importing� Party shall provide detailed grounds for the doubt concerning the veracity of the Certificate of Origin. �,
5. The proceedings of verification of origin as provided in this Chapter shall also apply to the pro9ucts already cleared for home consumption under preferential tariffs in accordance with this� Agreement. Article 3.22 Procedure for Verification 1. Any request made pursuant to Article 3.21 (Verification of Certificates of Origin) shall be in accordance with the procedures set forth in this Article and shall be conducted in a transparent, objective, and non�discriminatory manner. 2. In cases where the competent authority of the importing Party seeks to verify the veracity of the claim for preferential tariff treatment, including the basis of such claim, it shall make a written request or send a questionnaire seeking information from the importer of the product. 3. The importer shall respond to the verification request or questionnaire within 10 working days from the date of receipt of such request, if the request is on the ground of suspicion in respect of the claim for preferential tariff treatment in respect of the product and the information and documents which form the basis of such claim. 4. Where the importer fails to provide requisite information and documents by the prescribed due date in subparagraph 3 or where the information and documents received from the importer are found to be insufficient to conclude that the origin criteria prescribed in the respective rules of origin have been met, the competent authority of the importing Party shall request the competent authority of the exporting Party: (a) by providing a copy of the Certificate of Origin and any supporting document such as an invoice, packing list, bill of lading or airway bill, etc. (b) by specifying whether it requires a verification of the genuineness of the Certificate of Origin to rule out any forgery, seeks the minimum required information with the supporting documents or seeks to verify the determination of origin. 5. In cases where the competent authority of the importing Party seeks to verify the authenticity of the Certificate of Origin, accuracy of the information contained in the certificate or a copy of the minimum required information set out in Annex 3A (Minimum Required Information), along with supporting documents based on which origin was claimed, the competent authority of the importing Party shall send a written request for the same to the competent authority of the exporting� Party.
6. In cases where the Customs Administration of the importing Party seeks to verify the determination of origin, the competent authority of the importing Party shall send a questionnaire to the competent authorities of the exporting Party, which shall be passed on to the exporter or producer, for such inquiry or documents, as necessary. 7. The competent authority of the exporting Party shall provide the information and documentation requested by the Customs Administration of the importing Party, within the following time periods from the date of receipt of the request: (a) 15 days, where the request pertains to the authenticity of the Certificate of Origin, including the stamp of the issuing authority; (b) 30 days, where the request seeks a copy of the relevant document with the minimum required information; or (c) 90 days, where the request is on the grounds of suspicion of the accuracy of the determination of origin of the product. This period may be extended by mutual consultation between the Customs Administration of the importing Party and the issuing authority of the exporting Party for a period not more than 60 days. 8. If, upon receiving the results of the verification questionnaire pursuant to paragraphs 5 and 6, the competent authority of the importing Party has reasons to believe and therefore deems it necessary to request further investigative actions or information, the competent authority of the importing Party shall communicate the fact to the competent authority of the exporting Party in writing. The term for the execution of such new actions, or for the presentation of additional information, shall not be more than 90 days from the date of the receipt of the request for the additional information. 9. If, upon receiving the results of the verification pursuant to paragraphs 5 and 6, the competent authority of the importing Party deems it necessary to conduct a verification visit, it may deliver a written request to the competent authority of the exporting Party to facilitate a visit to the premises of the exporter or producer with a view to examining the records, production processes, as well as the equipment and tools utilised in the manufacture of the product under verification. 10. The request for a verification visit shall be made no later than 30 days of the receipt of the verification report referred to in paragraphs 5 and 6. The requested Party shall promptly inform the dates of the visit, but no later than 45 days of the receipt of request and give a notice of at least 21 days to the requesting Party and exporter or producer so as to enable arrangements for the visit.
11. The competent authorities of the exporting Party shall accompany the authorities of the importing Party during the verification visit. Such visits may include the participation of specialists acting as observers. Each Party can designate specialists, who shall be neutral and have no interest whatsoever in the verification. Each Party may deny the participation of such specialists whenever the latter represent the ioterest~J>f the _s::ompa :es involved Ln Jhe verification .. ,. ... ~ .. t -.. ? ,.. ? ""':'. ? .. w;i 12. Participants in the visit shall subscribe to a "Record of Visit" within 60 days of the conclusion of the visit. The said record shall contain the following information: (a) date and place of the visit; (b) identification of the Certificate of Origin which led to the verification; (c) identification of the products under verification; (d) identification of the participants, including the institutions they represent; and (e) a record of the proceedings. Article 3.23 Release of Products Upon reasonable suspicion regarding the origin of the products, the importing Party, subject to and in accordance with its laws and regulations, may as a condition for the release of the products: (a) request the importer to provide a guarantee in any of its modalities; or (b) take any action necessary in order to preserve fiscal interests as a pre-condition for the completion of the importation operations. Article 3.24 Confidentiality , ,,. .. r 1. The information obtained by the �competent authority of the importing Party may be used for,,the purpose of-:at a-. decision regarding the determination of origin in respect of the product under verification or during legal proceedings concerning issues under this Chapter and in . ? . r ~~ ... #. ., ? # ' ._ .._ ? ,� ' accordance_ with eac_h� ~f~f~,-~~~p.ective_~~1s -~n-~ �r~gul9tio{1s. ? -
2. Each Party shall protect. s4ch inforlT)atiqn
from any unauthorised disclosure, in accordance with-_its respective laws and regulatiqns . . _. �' Article 3.25 Denial of Preferential Treatment 1. Except as otherwise provided in this Chapter, the importing Party may deny a claim for preferential tariff treatment, if: (a) the importing party determines that the products do not meet the requirements of this Chapter; (b) the importer, exporter or producer fails to comply with the relevant requirements of this Chapter including those in Article 3.18 (Record Keeping), Article 3.19 (Obligations of the Exporter or Producer) or Article 3.22 (Procedure for Verification); (c) the Certificate of Origin does not meet the requirements of this Chapter; or (d) the exporting Party refuses or fails to respond to the competent authority of the importing Party in accordance with Article 3.22 (Procedure for Verification). 2. In cases where the Certificate of Origin is rejected by the Customs Administration of the importing Party, after following the due process provided under its laws, a copy of the decision, containing the grounds of rejection, shall be notified to the importer. Article 3.26 Products Complying with Rules of Origin If a verification conducted under Article 3.21 (Verification of Certificates of Origin), determines that the products comply with the rules of origin under this Chapter, the importer shall be promptly refunded the duties paid in excess of the preferential duty or release guarantees� obta'ined in accordance ~ith importing Party's laws and regulations. Article 3.27 Prospective Restoration of Preferential Benefits ' .? . 1. Where preferential treatment for a product has been denied by the Customs Administration of the importing Party prospectively or retrospectively, the exporter or producer may take recourse to the
procedure in paragraph ? in respect of future exports to the importing Party. �-'-' 2. Such exporter or producer shall clearly demonstrate to the satisfaction of the competent authority of the exporting Party that the manufacturing conditions were modified so as to fulfil the origin requirements of the rules of origin under this Chapter. 3. The competent authority of the exporting Party shall send the information to the competent authority of the importing Party explaining the changes carried out by the exporter or producer in the manufacturing conditions as a consequence of which the products fulfil the origin criterion. 4. If deemed necessary, the competent authority of the importing Party, shall within 45 days from the date of the receipt of the information, request for a verification visit to the producer's premises, for satisfying itself of the veracity of the claims of the exporter or producer referred in paragraph 2. 5. The prospective restoration of preferential benefits would be granted by the competent authority of the importing Party, if the veracity of the claims of the exporter or producer are established. 6. If the competent authorities of the Parties fail to agree on the fulfilment of the rules of origin under this Chapter subsequent to the modification of the manufacturing conditions, they may refer the matter to the Subcommittee established under Article 3.31 (Cooperation) for a decision. Article 3.28 Temporary Suspension of Preferential Treatment 1. The importing Party may suspend the preferential tariff treatment in respect of a product originating in the exporting Party when the suspension is justified due to persistent failure to comply with the provisions of this Chapter by an exporter or producer in the exporting Party or a persistent failure on the part of the competent authority of the exporting Party to respond to a request for verification. 2. The importing Party shall, within 90 days from the date of suspension of the preferential tariff treatment for a product, notify the exporting Party in writing of the reasons for such suspension. 3. Upon receipt of the notification of the suspension, the competent authority of the exporting Party may request consultations.
4. The consultations may be conducted by electronic means, including, video conference, or by in-person meetings, as mutually agreed, and may also involve joint verification. 5. Pursuant to the consultations between the Parties, and such measures as they may mutually agree, the Parties shall resolve to: (a) restore preferential tariff treatment to the product with retrospective effect; (b) restore preferential tariff treatment to the product with prospective effect, subject to implementation of any mutually agreed measures by one or both Parties; or (c) continue with the suspension of preferential tariff treatment to the product, subject to remedies available under Article 3.27 (Prospective Restoration of Preferential Benefits). Article 3.29 Non-Compliance of Products with Rules of Origin and Penalties 1. If the verification under Article 3.21 (Verification of Certificates of Origin) establishes the non-compliance of products with the rules of origin, duties shall be levied in accordance with the laws and regulations of the importing Party. 2. Each Party shall also adopt or maintain measures that provide for the imposition of sanctions for violations of its customs laws and regulations, including those governing rules of origin and the entitlement to preferential tariff treatment under this Agreement. Article 3.30 Relevant Dates The time periods set out in this Chapter shall be calculated on a consecutive day basis from the day following the fact or event to which they refer. Article 3.31 Cooperation 1. The Parties hereby establish a. Subcommittee on Rules of Origin to oversee the implementation of this Chapter, under the CTG.
2. The Subcommittee on Rules of Origin shall comprise of officials of the competent authorities, the Customs Administration and the issuing authorities of the Parties. 3. The Subcommittee on Rules of Origin shall meet at least once annually for the furtherance of the objectives of this Chapter, including to enhance mutual capacity building to facilitate the smooth implementation of the procedures under this Chapter and to explore ways and means for utilising information technology-enabled services for the issuance and verification of the Certificate of Origin. 4. The Subcommittee on Rules of Origin will also evaluate and decide on whether to continue with the issuance of the Certificate of Origin by the issuing authority of each Party, or to switch to self-certification procedures. If either Party is not ready to switch to self-certification during the first regular review session, the issue shall be deferred to subsequent reviews until such time where both Parties can agree to adopt the self-certification procedures. 5. The Subcommittee on Rules of Origin may_ refer any matter to the Joint Committee. Article 3.32 Consultation and Modifications 1. The Parties shall consult and cooperate through the Subcommittee on Rules of Origin as appropriate to: (a) ensure that this Chapter is applied in an effective and uniform manner; and (b) discuss necessary amendments to this Chapter, taking into account developments in technology, production processes, and other related matters. Article 3.33 Exchange of Electronic Data on Origin The Parties endeavour to develop an electronic system for information exchange on origin to ensure the effective and efficient implementation of this Chapter particularly on transmission of electronic Certificate of_Origin. '
Article 3.34 Origi_n D_ecl~fration For the purposes of subparagraph 1 (c) of Article 3.13 (Proof of Origin), the Parties endeavour fo negotiate, agree on, and implement provisions allowing each competent authority to recognise an origin declaration made by an approved exporter.
CHAPTER 4 SANITARY AND PHYTOSANITARY MEASURES For the purposes of this Chapter: Article 4.1 Definitions 1. "SPS Agreement" means the Agreement on the Application of Sanitary and Phytosanitary Measures, set out in Annex 1A to the WTO Agreement. 2. The definitions under Annex A of the SPS Agreement shall apply. 3. Relevant definitions developed by Codex Alimentarius Commission (Codex), the World Organisation for Animal Health (WOAH), and the International Plant Protection Convention (IPPC) shall apply. 4 -'"Competent authorities" mean those authorities within each Party recognjsed by the national government as responsible for deve_lqping and adm.imstering the SPS measures within that Party. ? _, '~ . . 5. An "emergency measure" means a sanitary or phytosanitary measure that is applied by a Party to products of the other Party to address an urgent problem of human, animal or plant life or health protection that arises or threatens to arise in the Party applying the measure. Article 4.2 Objectives 1. The objectives of this Chapter are to'. (a) ? protect human, animal or plant life or health in the territories of the Parties while facilitating trade between them; (b) reinforce the SPS Agreement; (c) strengthen communication, consultation, and between the Parties, and particularly between competent authorities;. cooperation the Parties' (d) ensure that sanitary or phytosanitary measures implemented by -? -a Party.do not create. tmjustified barriers to trade; (e) enhance transparency in and understanding of the.,applicatidn of each Party's sanitary and phytosanitary measures; and
(f) encourage the development and adoption of science-based international standards, guidelines, and recommendations, and promote their implementation by the Parties. Article 4.3 Scope This Chapter shall apply to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties. Article 4.4 General Provision 1. The Parties affirm their rights and obligations with respect to each other under the SPS Agreement. 2. In the event of any conflict between the definitions under the SPS Agreement and any of the other sources specified in paragraph 3 of Article 4.1 (Definitions), the definitions under the SPS Agreement shall prevail. Article 4.5 Equivalence 1. Both Parties shall strengthen cooperation on equivalence in accordance with Article 4 of the SPS Agreement while taking into account relevant decisions of the WTO SPS Committee and international standards, guidelines and recommendations, in accordance with Annex A of the SPS Agreement, mutatis mutandis. 2. The importing Party shall recognise the equivalence of a sanitary and phytosanitary measure if the exporting Party objectively demonstrates to the importing Party that its measure achieves the same level of protection as the importing Party's measure or that its measure has the same effect in achieving the objective as the importing Party's measure. 3. In determining equivalence, the importing Party shall take into account existing knowledge, information and experience as well as the regulatory competence of the exporting Party. 4. A Party shall, upon request, enter into consultation with the aim of achieving bilateral recognition arrangements of equivalence of specified sanitary and phytosanitary measures. The recognition of equivalence
may be with respect to a single measure, group of measures or on a systems-wide basis. For this purpose, reasonable access shall be given, upon request, to the importing Party for inspection, testing and other relevant procedures. 5. As part of the consultation for equivalence recognition, on request by the exporting Party, the importing Party shall explain and provide: (a) the rationale and objective of its measures; and (b) the specific risks its measures are intended to address. 6. The exporting Party shall provide necessary information for the importing Party to commence an equivalence asses~ment. Once the assessment commences, the importing Party shall, without undue delay and upon request, explain the process and plan for making an equivalence determination. 7. The consideration by a Party of a request from the other Party for recognition of equivalence of its measures with regard to a specific product, or group of products, shall not be in itself a reason to disrupt or suspend ongoing imports from the Party of the product(s) in question. 8. When the importing Party recognises the equivalence of the exporting Party's specific sanitary and phytosanitary measure, group of measures or measures on a systems-wide basis, the importing Party shall communicate the decision in writing to the exporting Party and implement the measure within a reasonable period of time. The rationale shall be provided in writing by the importing Party in the event that the decision is negativ~~ 9. The importing Party may withdraw or suspend equivalence on the basis of any amendment, by one of the Parties, of measures affecting equivalence, in accordance with the following provisions: (a) the exporting Party shall inform the importing Party of any proposal for amendment of its measures for which equivalence of measures is recognised and the likely effect of the proposed measures on t_he equivalence which has been recognised; (b) within 60 working days or as mutually agreed by the Parties on receipt of this information, the importing Party shall inform the exporting Party whether or not equivalence would continue to be recognised on the basis of the proposed measures; (c) the importing Party shall inform the exporting Party of any proposal for amendment of its measures on which recognition of
equivalence has been based and the likely effect of the proposed measures on the equivalence which has been recognised; and (d) in case of non-recognition or withdrawal or suspension of equivalence, the importing Party shall indicate to the exporting Party the required conditions on which the process referred to in paragraphs 4 and 5 may be reinitiated, provided that the timelines of paragraph 6 shall be adhered to in any process for re�assessment of equivalence. 10. The withdrawal or suspension of equivalence rests solely with the importing Party acting in accordance with its administrative and legislative framework which shall adhere to the international standards, guidelines and recommendations. The importing Party shall provide to the exporting Party, upon request, an explanation for its determinations and decisions, except for disclosure of confidential data. 11. Compliance by an exported product that has been accepted as equivalent to sanitary and phytosanitary measures and standards of the importing Party shall not remove the need for that product to comply with any other relevant mandatory requirements of the importing Party. Article 4.6 Adaptation to Regional Conditions, including Pest-or Disease-Free Areas and Areas of Low Pest or Disease Prevalence 1. Both Parties recognise the concepts of regional conditions, including pest-or disease-free areas and areas of low pest or disease prevalence, zoning and comp?rtmentalisation. Parties shall take into account the relevant decisions of the WTO SPS Committee and international standards, guidelines, and recommendations. 2. Both Parties may cooperate on the recognition of regional conditions with the objective of acquiring confidence in the procedures followed by each other for such recognition. 3. At the request of the _exporting Party, the importing Party shall, without undue delay, explain its process and plan for making the determination of regional conditions. 4. When the importing Party has received a request for a determination of regional conditions from the exporting Party, and has determined that the information provided by the exporting Party is sufficient, it shall initiate the assessment within a reasonable period of time.
5. For this assessment, reasonable access shall be given, upon request, to the importing Party for inspection, testing and other relevant procedures. 6. On request of the exporting Party, the importing Party shall inform the exporting Party of the status of the assessment. 7. When the importing Party recognises specific regional conditions of an exporting Party, the importing Party shall communicate that decision to the exporting Party in writing and implement the measures within a reasonable period of time. 8. If the evaluation of the evidence provided by the exporting Party does not result in a decision by the importing Party to recognise the regional conditions, the importing Party shall provide the exporting Party the rationale for its decision in writing within a reasonable period of time. 9. Where a determination recognising regional conditions is made, the Parties are encouraged, where mutually agreed, to report the outcome to the WTO SPS Committee. Article 4.7 Risk Analysis 1. The Parties shall strengthen their cooperation on risk analysis in accordance with the SPS Agreement while taking into account the relevant decisions of the WTO SPS Committee and international standards, guidelines, and recommendations. 2. When conducting a risk analysis, an importing Party shall: (a) ensure that the risk analysis is documented and that it provides the exporting Party with an opportunity to comment in a manner to be determined by the importing Party; (b) consider risk management options that are not more trade restrictive than required to achieve its appropriate level of sanitary or phytosanitary protection; and (c) select a risk management option that is not more trade restrictive than required to achieve its appropriate level of sanitary or phytosanitary protection, taking into account technical and economic feasibility. 3. On request of the exporting Party, the importing Party shall inform the exporting Party of the progress of a��specific risk analysis request, and of any delay that may occur during the process.
4. Without prejudice to the Parties' right to take emergency measures consistent with Article 4.9 (Emergency Measures), no Party shall stop the importation of a good of the other Party solely for the reason that the importing Party is undertaking a review of a sanitary or phytosanitary measure, if the importing Party permitted importation of the good of the other Party at the time of the initiation of the review. Article 4.8 Audit, Certification and Import Checks 1. The Parties shall ensure that their import procedures comply with Annex C of the SPS Agreement including audit, certification, and import checks. 2. When conducting an audit, the Parties agree that: (a) audits shall be systems-based and designed to check the effectiveness of the regulatory controls of the competent authorities of the exporting Party. Audits may include an assessment of the competent authorities' control programme, including, where appropriate, reviews of the inspection and audit programmes, and on-site inspections of facilities, without prejudice to the rights of a Party to seek market access on the basis of individual inspection and audits; (b) prior to commencement of an audit, both Parties shall discuss and agree, inter alia: (i) the rationale for and the objectives and scope of the audit; (ii) the criteria or requirements against which the exporting Party will be assessed; and (iii) the itinerary and procedures for conducting the audit; (c) the auditing Party shall provide the audited Party the opportunity to comment on the finding of an audit and take any such comments into account before making its conclusions and taking any action; (d) any decisions or actions taken by the auditing Party as a result of the audit shall be supported by objective evidence and data which can be verified, t~king into account the knowledge, relevant experience, and confidence that the auditing Party has with the audited Party. Any such objective evidence and data shall be provided to the audited Party on request; ..
(e) any costs incurred by the auditing Party shall be borne by the auditing Party, unless the Parties agree otherwise; and (f) the auditing Party and the audited Party shall each ensure that procedures are in place to prevent the disclosure of confidential information acquired during the auditing process. 3. When conducting certification, the Parties agree that: (a) where certification is required for trade in a product, the importing Party shall ensure such certification is applied, in meeting its sanitary or phytosanitary objectives, only to the extent necessary to protect human, animal and plant life or health; (b) in applying certification requirements, each Party shall take into account relevant decisions from the WTO SPS Committee and international standards, guidelines, and recommendations; (c) the Parties shall promote the implementation of electronic certification and other technologies to facilitate trade; and (d) without prejudice to each Party's right to use import controls, the importing Party shall accept certificates issued by the competent authorities in compliance with the regulatory requirements of the importing Party. 4. When conducting import checks, the Parties agree that: (a) both Parties shall ensure that their control, inspection and approval procedures are in accordance with Annex C of the SPS Agreement; (b) the import checks applied to imported animals, animal products, plants and plant products traded between the Parties shall be based on the risk associated with such importations. The import checks shall be carried out in a manner that is appropriate to the risk involved, without undue delay, and shall be least trade�restrictive; and (c) unless there is a clearly identified risk in holding a consignment, the consignment shall not be destroyed without affording an opportunity to the importer to take back the consignment. 5. In the case of non-compliant consignments, both Parties agree to share relevant laboratory reports, if any.
Article 4.9 Emergency Measures 1. If a Party adopts an emergency measure that is necessary for the protection of human, animal or plant life or health and that may have an effect on trade, the Party shall promptly notify, in writing, in the English language, the other Party of that measure through the relevant contact point referred to in Article 4.13 (Contact Points and Competent Authorities). The importing Party shall take into consideration any information provided by the other Party in response to the notification. 2. If a Party adopts an emergency measure, it shall review the measure within 8 months or any other such time as agreed by the Parties and make available the results of the review to the other Party on request. If the emergency measure is maintained after the review, because the reason for its adoption remains, the Party may review the measure every 6 months. Article 4.10 Transparency 1. The Parties recognise the value of transparency in the adoption and application of sanitary and phytosanitary measures and the importance of sharing information on such measures on an ongoing basis. 2. Each Party shall notify proposed measures or changes to sanitary or phytosanitary measures that may have a significant effect on the trade of the other Party through the online WTO Sanitary and Phytosanitary Measures Notifiyation Submission System, the contact points designated under Article 4.13 (Contact Points and Competent Authorities), or through already established communication channels of the Parties. 3. In implementing this Article, both Parties shall take into account relevant decisions of the WTO SPS Committee and international standards, guidelines, and recommendations. 4. A Party, upon request from the other Party, shall provide relevant information and clarification regarding any sanitary or phytosanitary measure to the requesting Party within a reasonable period of time including: (a) the sanitary and phytosanitary requirements that apply for the import of specific products; (b) the status of the Party's application; and
(c) the procedures for the authorisation of specific products. 5. Unless urgent problems of human, animal or plant life or health protection arise or threaten to arise, or the measure is of a trade�facilitating nature, the Party proposing a sanitary or phytosanitary measure shall normally allow at leasf 60 days for the other Party to provide written comments on the proposed measure after it makes a notification under paragraph 2. If feasible and appropriate, the Party proposing the measure should allow more than 60 days. The Party shall consider any reasonable request from the other Party to extend the comment period. On request of the other Party, the Party proposing the measure shall respond to the written comments of the other Party in an appropriate manner. 6. A Party that proposes to adopt a sanitary or phytosanitary measure shall discuss with the other Party, on request, and if appropriate and feasible, any scientific or trade concerns that the other Party may raise regarding the proposed measure and the availability of alternative, less trade�restrictive approaches for achieving the objective of the measure. 7. The Parties encourage the publication, by electronic means, in an official journal or on a website, the proposed sanitary or phytosanitary measure notified under paragraph 3, and the legal basis for the measure. 8. Each Party shall notify the other Party of final sanitary or phytosanitary measures through the WTO Sanitary and Phytosanitary Measures Notification Submission System. Each Party shall ensure that the text or the notice of a final sanitary or phytosanitary measure specifies the date on which the measure takes effect and the legal basis for the measure. Each Party shall publish, preferably by electronic means, notices of final sanitary or phytosanitary measures in an official journal or website. 9. An exporting Party shall notify the importing Party through the contact points referred to in Article 4.13 (Contact Points and Competent Authorities) in a timely and appropriate manner: (a) if it has identified significant sanitary or phytosanitary risk related to the export of a good from its territory going to the importing Party; (b) of urgent situations where a change in animal or plant health status in the territory of the exporting Party may affect current trade; (c) of significant changes in the status of a regionalised pest or disease;
(d) of new scientific findings of importance which affect the regulatory response with respect to food safety, pests or diseases; or (e) of significant changes in food safety, pest or disease management, control or eradication policies or practices that may affect current trade. 10. Each Party shall provide within a reasonable period of time, appropriate information to the other Party through the contact points established under Article 4.13 (Contact Points and Competent Authorities) or already established communication channels of the Parties, when: (a) there is significant or recurring sanitary or phytosanitary noncompliance associated with an exported consignment identified by the importing Party; and (b) a sanitary or phytosanitary measure adopted provisionally against or affecting the export of the other Party is considered necessary to protect human, animal or plant life or health within the importing Party. 11. A Party shall provide to the other Party, on request, all sanitary or phytosanitary measures related to the importation of a good into that Party's territory in the English language. Article 4.11 Cooperation and Capacity Building 1. Both Parties shall explore opportunities for further cooperation between them, including capacity building, technical assistance, collaboration, and information exchange on sanitary and phytosanitary matters of mutual interest, consistent with the provisions of this Chapter. 2. In undertaking cooperative activities, both Parties shall endeavour to coordinate with bilateral, regional or multilateral work programmes with the objective of avoiding unnecessary duplications and eliminating unnecessary obstacles to trade between the Parties and maximising the use of resources. 3. If there is mutual interest and with the objective of establishing a common scientific foundation for each Party's regulatory approach, the competent authorities of the Parties are encouraged to: (a) share best practices; and (b) cooperate on joint scientific data collection.
Article 4.12 Technical Discussions 1. Where a Party considers that a sanitary or phytosanitary measure is affecting its trade with the other Party, it may, through the contact points or through other established communication channels, request a detailed explanation of the sanitary or phytosanitary measures including the scientific basis of the measure. The other Party shall respond promptly to any request for such explanation. 2. A Party shall notify the other Party of an emergency measure under this Chapter immediately after adopting its decision to implement the measure. If a Party requests technical discussion to address the emergency SPS measure, the technical discussion must be held within 10 days of the notification of the emergency measure. The Parties shall consider any information provided through the technical discussion. 3. A Party may request to hold technical discussions with the other Party in an attempt to resolve any concerns on specific issues arising from the application of the sanitary and phytosanitary measure. The requested Party shall respond promptly to any reasonable request for such consultation. 4. Where a Party requests technical discussion, such discussion shall take place as soon as practicable, unless the Parties agree otherwise. 5. The technical discussions may be conducted via teleconference, videoconference, or through any other means as the Parties mutually agree. 6. Such technical discussions are witho~t prejudice to the rights and obligations of the Parties under Chapter 13 (Dispute Settlement). Article 4.13 Contact Points and Competent Authorities 1. Upon entry into force of this Agreement, each Party shall: (a) designate a contact point or contact points to facilitate communication on matters covered under this Chapter; (b) inform the other Party of a contact point or contact points; and (c) when more than one contact point is designated, specify a contact point that serves as the focal point to respond to enquiries by the other Party about the approp�riate contact point with which to communicate. 84
2. A Party shall provide the other Party, through the contact point or contact points, a description of its competent authorities and their division of functions and responsibilities. 3. Both Parties shall notify each other of any changes to the contact points and significant changes in the structure, organisation and division of responsibility within its competent authorities. 4. Both Parties recognise the importance of the competent authorities in the implementation of this Chapter. Accordingly, the competent authorities of the Parties may cooperate with each other on matters covered by this Chapter in a manner the Parties mutually agree. Article 4.14 Subcommittee on SPS Measures 1. The Parties hereby establish a Subcommittee on Sanitary and Phytosanitary Measures (SPS Subcommittee) under the CTG, consisting of representatives of each P-arty's competent authorities. 2. The SPS Subcommittee shall meet within one year from the date of entry into force of this Agreement, and thereafter, at such venues and time�period as the Parties mutually determine. 3. The functions of the SPS Subcommittee shall be to: (a) consider any sanitary and phytosanitary matters of mutual interest; (b) coordinate cooperation pursuant to Article 4.11 (Cooperation and Capacity Building) and identify mutually agreed priority sectors for enhanced cooperation; (c) monitor the implementation and operation of this Chapter; (d) encourage the Parties to share their experiences regarding the implementation of this Chapter; and (e) facilitate technical discussions. 4. Meetings may occur in person, by teleconference, by video conference, or through any other means as determined by .the Parties.
Article 4.15 Annex 1. The agreed text of Annex on Export Inspection Council Certification to Chapter 4 on Sanitary and Phytosanitary Measures is placed in Annex 4A. 2. The Parties shall, through mutual agreement, extend recognition of certification requirements for products issued by the competent authorities of Oman and India, as may be established for this purpose, in compliance with the regulatory requirements of the importing Party, to facilitate trade between them. The Parties, subject to their respective laws and regulations, shall commit to enter into a mutual recognition arrangement within 6 months from the date of signature of this Agreement or from the receipt of an official request letter, whichever is later, unless otherwise agreed. 3. Nothing in this Chapter prevents the Parties to request for such mutual recognition arrangements, whenever required, to facilitate trade between the Parties. Any such arrangements, once agreed upon between the Parties, shall form part of subsequent Annexes under this Chapter.
CHAPTER 5 TECHNICAL BARRIERS TO TRADE Article 5.1 Definitions 1. For the purposes of this Chapter, the terms and their definitions set out in Annex 1 of the TBT Agreement shall apply. 2. "TBT Agreement" means Agreement on Technical Barriers to Trade, set out in Annex 1A to the WTO Agreement. Article 5.2 Objectives 1. The objectives of this Chapter are to facilitate trade in goods between the Parties by: (a) ensuring that standards, technical regulations and conformity assessment procedures do not create unnecessary obstacles to trade; (b) furthering cooperation pursuant to the TBT Agreement, promoting mutual understanding of each Party's standards, technical regulations and conformity assessment procedures, and enhancing transparency; (c) facilitating information exchange and cooperation between the Parties in the field of standards, technical regulations and conformity assessment procedures, including the work of relevant international bodies; and (d) addressing the issues that may arise under this Chapter. Article 5.3 Scope 1. This Chapter shall apply to the standards, technical regulations and conformity assessment procedures that may affect trade in goods between the Parties. The Chapter shall not apply to: (a) sanitary and phytosanitary measures which are covered in Chapter 4 (Sanitary and Phytosanitary Measures) of this Agreement; and 91
(b) purchasing specifications prepared by governmental bodies for production or consumption requirements of governmental bodies. 2. Without prejudice to paragraph 1, this Chapter shall apply to the preparation, adoption and application of all standards, technical regulations and conformity assessment procedures by central government bodies, and where explicitly provided for in this Agreement, government bodies at the level directly below that of the central level of government that may affect trade in goods between the Parties. 3. All references in this Chapter to standards, technical regulations and conformity assessment procedures shall be construed to include any amendments to them and any addition to the rules or the product coverage of those standards, technical regulations and conformity assessment procedures, except amendments and additions of an insignificant nature. 4. Each Party shall take such reasonable measures that are within its authority to encourage observance by local government bodies, as the case may be, on the level directly below that of the central level of government within its territory which are responsible for the preparation, adoption, and application of standards, technical regulations and conformity assessment procedures, of Articles 5.5 (Standards) and 5.7 (Conformity Assessment Procedures). 5. For greater certainty, nothing in this Chapter shall prevent a Party from preparing, adopting, applying or maintaining standards, technical regulations or conformity assessment procedures in accordance with its rights and obligations under this Agreement, the TBT Agreement, and any other relevant international agreement. Article 5.4 Affirmation and Incorporation of the TBT Agreement 1. The Parties affirm their rights and obligations under the TBT Agreement, and the following provisions of the TBT Agreement are incorporated into and form part of this Agreement, mutatis mutandis: (a) Article 2; (b) Article 3; (c) Article 4.1; (d) Article 5; (e) Article 6.1, 6.3; and
(f) Annex 3, except paragraph A. 2. In the event of any inconsistency between the provisions of the TBT Agreement incorporated under this Article and other provisions of this Chapter, the latter shall prevail. 3. Neither Party shall have recourse to dispute settlement under Chapter 13 (Dispute Settlement) for a dispute that exclusively alleges a violation of the provisions of the TBT Agreement incorporated under this paragraph. Article 5.5 Standards 1. The Parties recognise the important role that international standards, guides and recommendations can play in harmonising technical regulations, conformity assessment procedures and national standards, and in reducing unnecessary barriers to trade. 2. To determine whether there is an international standard, guide or recommendation within the meaning of Articles 2 and 5 and Annex 3 of the TBT Agreement, each Party shall apply the Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2 and 5 and Annex 3 of the TBT Agreement (G/TBT19, 13 November 2000, Annex 4), and subsequent relevant decisions and recommendations in this regard, adopted by the WTO Committee on Technical Barriers to Trade (WTO TBT Committee). 3. Each Party shall ensure that its standardising body or bodies, while formulating national standards, shall ensure that such standards are not prepared, adopted or applied with a view to, or with the effect of, creating unnecessary obstacles to international trade. 4. Where modifications to the contents or structure of the relevant international standards were necessary in developing a Party's national standards, that Party_ shall, on request of the other Party, encourage its standardising body or bodies to provide information about the differences in the contents and structure, and the reason for those differences. Any fees charged for this service shall, apart from the real cost of delivery, be the same for foreign and domestic persons. 5. The Parties shall cooperate with each other to ensure that international standards, guides and recommendations that are likely to become a basis for technical regulations and conformity assessment procedures do not create unnecessary obstacles to international trade.
6. Each Party shall encourage the standardising body or bodies in its territory to cooperate with the standardising body or bodies of the other Party including: (a) exchange of information on standards; (b) exchange of information relating to standard setting procedures; and (c) cooperation in the work of international standardising bodies in areas of mutual interest. 7. The Parties shall, where appropriate, strengthen coordination and communication with each other in the context of discussion on international standards and related issues in other international fora, such as the WTO TBT Committee. Article 5.6 Technical Regulations 1. Each Party shall prepare, adopt and apply its technical regulations in accordance with Article 2 of the TBT Agreement and ensure adherence to Article 3 of the TBT Agreement. 2. Each Party shall use relevant international standards to the extent provided in paragraph 4 of Article 2 of the TBT Agreement, as a basis for its technical regulations. Where a Party does not use such international standards, or their relevant parts, as a basis for its technical regulations and these may have an effect on trade of the other Party, it shall, upon request of the other Party, explain the reasons therefor. The explanation shall make every effort to address why the standard has been judged inappropriate or ineffective for the objective pursued. Where the Party considers that the technical explanation provided is not satisfactory, both Parties shall enter into technical discussions that will take place as expeditiously as possible to arrive at a mutually satisfactory understanding. 3. In implementing Article 2.2 of the TBT Agreement, each Party shall consider available alternatives in order to ensure that any proposed technical regulations to be adopted are not more trade-restrictive than necessary to fulfil a legitimate objective, taking account of the risk non�fulfilment would create. 4. Each Party shall give positive consideration to accepting as equivalent, technical regulations of the other Party, even if these regulations differ
from its own, provided it is satisfied that these regulations adequately fulfil the objectives of its own regulations. 5. In addition to Article 2.7 of the TBT Agreement, a Party shall, on request of the other Party,1 provide the reasons why it has not accepted, or cannot accept, a technical regulation of that Party as equivalent to its own. The Party to which the request is made should provide its response within a reasonable period of time. 6. Each Party shall uniformly and consistently apply its technical regulations that are prepared and adopted by its central government bodies to its territory. For greater certainty, nothing in this paragraph shall be construed to prevent local government bodies from preparing, adopting and applying additional technical regulations in a manner consistent with the provisions of the TBT Agreement. 7. Except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise, Parties shall allow a reasonable interval between the publication of technical regulations and their entry into force in order to provide sufficient time for producers in exporting Party to adapt their products or methods of production to the requirements of importing Party. 8. At the request of a Party that has an interest in developing a technical regulation similar to a technical regulation of the other Party, such other Party shall endeavour to provide, to the extent practicable, relevant information, including studies or documents, except for confidential information, on which it has relied in its development. 9. Consistent with the obligations of the TBT Agreement, incorporated by Article 5.4 (Affirmation and Incorporation of the TBT Agreement), each Party shall ensure that its technical regulations concerning labels: (a) accord treatment no less favourable than that accorded to like goods of national origin; and (b) do not create unnecessary obstacles to trade between the Parties. 1 The Party's request should identify with precision the respective technical regulations it considers to be equivalent and any data or evidence that supports its position.
Article 5.7 Conformity Assessment Procedures 1. In cases where a positive assurance is required that products conform with technical regulations or standards, and relevant international standards, guides or recommendations issued by international standardising bodies exist or their completion is imminent, each Party shall ensure that central government bodies use them or the relevant parts of them as a basis for their conformity assessment procedures, except where, as duly explained upon request, such international standards, guides or recommendations or relevant parts are inappropriate for the Party concerned, for reasons such as: national security requirements; the prevention of deceptive practices; protection of human health or safety, animal or plant life or health, or the environment; fundamental climatic or other geographical factors; fundamental technological or infrastructural problems. 2. Procedures for assessment of conformity by central government bodies of each P~tty shall be in accordance with Atticle�s�of the TBT Agreement. 3. Each Party shall ensure, whenever possible, that results of the conformity assessment procedures in the other Party are accepted, even when those procedures differ from its own, provided it is satisfied that those procedures offer an assurance of conformity with applicable technical regulations or standards equivalent to its own procedures. 4. A Party shall, upon request of the other Party, explain its reasons for not accepting the results of a conformity assessment procedure conducted in the other Party. Each Party recognis~s that a broad range of r:nechanis.ms exists to facilitate the acceptance of the results of conformity assessment procedures conducted in the other Party. Such mechanisms may include: (a) mut�al recognition agreements for the results of conformity assessment procedures conducted by bodies in the Parties; (b) cooperative (voluntary) arrangements between accreditation bodies or those between conformity assessment bodies in the Parties; (c) use �of accreditation to qualify conformity assessment bodies, including through relevant multilateral ? agreements or arrangements to recognise the accreditation granted by the other Party; (d) designation of conformity assessment bodies in the other Party;
5. (e) unilateral recognition by a Party, of results of conformity assessment procedures conducted in the other Party; and (f) manufacturer's or supplier's declaration of conformity. Upon reasonable request, the Parties shall exchange information or share experiences on the mechanisms referred to in paragraph 4, with a view to facilitating the acceptance of the results of conformity assessment procedures. 6. Each Party shall, if it considers appropriate, permit participation of conformity assessment bodies in the other Party, in its conformity assessment procedures under conditions no less favourable than those accorded to conformity assessment bodies in that Party. 7. Where a Party permits participation of its conformity assessment bodies and does not permit participation of conformity assessment bodies in the other Party in its conformity assessment procedures, it shall, upon written request of that Party, explain the reason for its refusal in writing. 8. The Parties recognise the important role that relevant regional or international organisations can play in cooperation in the area of conformity assessment. In this regard, each Party shall take into consideration the participation status or membership in such organisations of relevant bodies in the Parties in facilitating this cooperation. 9. The Parties agree to encourage cooperation between their relevant conformity assessment bodies in working closer with a view to facilitating the acceptance of conformity assessment results between the Parties. Article 5.8 Cooperation 1. The Parties shall encourage cooperation between their respective organisations responsible for standardisation, conformity assessment, accreditation and metrology, with a view to facilitating trade. 2. Each Party shall, upon request of the other Party, give positive consideration to proposals for cooperation on matters of mutual interest on standards, technical regulations and conformity assessment procedures. 3. Such cooperation, which shall be on terms and conditions the Parties mutually determine, may include:
(a) advice, technical assistance or capacity building relating to the development and application of standards, technical regulations and conformity assessment procedures; (b) cooperation between conformity assessment bodies, both governmental and non-governmental, in the Parties on matters of mutual interest; (c) cooperation in areas of mutual interest in the work of relevant regional and international bodies relating to the development and application of standards and conformity assessment procedures, such as enhancing participation in the frameworks for mutual recognition developed by relevant regional and international bodies; (d) enhancing cooperation in the development and improvement of standards, technical regulations and conformity assessment procedures; (e) strengthening communication and coordination in the WTO TBT Committee and other relevant international, or regional fora; (f) greater alignment of national standards with relevant international standards, except where such international standards are inappropriate or ineffective; (g) facilitation of the greater use of relevant international standards, guides and recommendations as the basis for technical regulations and conformity assessment procedures; and (h) promotion of the acceptance of technical regulations of the other Party as equivalent. 4. Each Party shall, upon request of the other Party, give due consideration for cooperation in areas of mutual interest under this Chapter. Article 5.9 Information Exchange and Technical Discussions 1. A Party may request in writing that the other Party provide information on any matter arising under this Chapter. A Party receiving a written request in ihe English language under this paragraph shall provide that information within a reasonable period of time and, if possible, by electronic means. 2. When a Party considers the need to resolve an issue under the provisions of this Chapter, it may request, in writing, to hold technical
discussions with the other Party. The requested Party shall respond as early as possible to such a request. 3. The Parties shall discuss the matter raised within 60 days after the date of the request. If the requesting Party considers that the matter is urgent, it may request that any discussion take place within a shorter time frame. The Parties shall attempt to obtain satisfactory resolution of the matter as expeditiously as possible, recognising that the time required to resolve a matter will depend on a variety of factors, and that it may not be possible to resolve every matter through technical discussions. 4. Requests for information or technical discussions and communications shall be conveyed through the respective contact points designated pursuant to Article 5.11 (Contact Points). 5. Unless the Parties agree otherwise, the discussions and any information exchanged in the course of the discussions shall be confidential and without prejudice to the rights and obligations of the participating Parties under this Agreement, the WTO Agreement or any other agreement to which both Parties are party. 6. The Parties understand and agree that this Article is without prejudice to the rights and obligations of the Parties under Chapter 13 (Dispute Settlement). Article 5.10 Transparency 1. The Parties recognise the importance of the provIsIons relating to transparency in the TBT Agreement. In this respect, the Parties shall take into account relevant Decisions and Recommendations adopted by the WTO TBT Committee. 2. Upon request, a Party shall provide, if already available, the full text or summary of its notified technical regulations and conformity assessment procedures in the English language. If unavailable, that Party shall provide a summary stating the requirements of the notified technical regulations and conformity assessment procedures to the requesting Party in the English language, within a reasonable period of time agreed between the Parties and, if possible, within 30 days after receiving the written request. In implementing the preceding sentence, the contents of the summary shall be determined by the responding Party. 3. Each Party shall, on request of the other Party, provide information regarding the objectives of, and rationale for, a technical regulation or
conformity assessment procedure that Party has adopted or is proposing to adopt. 4. Each Party shall normally allow 60 days from the date of notification to the WTO in accordance with Articles 2.9 and 5.6 of the TBT Agreement for the other Party to present comments in writing, except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise. 5. Each Party shall take the comments of the other Party into account and shall endeavour to provide responses to these comments upon request. 6. Each Party shall allow persons of the other Party to participate in consultation procedures which are available to the general public for the development of technical regulations, national standards and conformity assessment procedures by the Party, subject to its laws and regulations, on terms no less favourable than those accorded to its own persons. 7. When a Party detains at the point of entry an imported consignment, due to non-compliance with a technical regulation or a conformity assessment procedure, it shall notify the importer .or its representative, as soon as possible, the reasons for the detention. 8. Unless the Chapter provides otherwise, any information or explanation requested by a Party pursuant to this Chapter shall be provided to the other Party, within a reasonable period of time as the Parties may agree and, if possible, within 60 days. Upon request, the requested Party shall provide such information or explanation in the English language. Article 5.11 Contact Point 1. Within 60 days after the date of entry into force of this Agreement, each Party shall designate a contact point or contact points responsible for coordinating the implementation of this Chapter. 2. Each Party shall provide the other Party with the name of the designated contact point or contact points and the contact details of the relevant official(s) in that organisation, including telephone, email and any other relevant details. 3. Each Party shall notify the other Party promptly of any change in their contact points or any amendments to the details of the relevant official(s).
4. Each Party shall ensure that its contact point or contact points facilitate the exchange of information between the Parties on standards, technical regulations and conformity assessment procedures, in response to all reasonable requests for such information from a Party. Article 5.12 Subcommittee on Standards, Technical Regulations and Conformity Assessment Procedures 1. The Parties hereby establish a Subcommittee on Standards, Technical Regulations and Conformity Assessment Procedures, under the Committee on Trade in Goods, consisting of representatives of the Parties. 2. The Subcommittee shall meet at such venues and time-period as the Parties mutually agree. Meetings may be conducted in person, or by any other means as the Parties mutually agree. 3. The functions of the Subcommittee may include: (a) monitoring the implementation and operation of this Chapter; (b) coordinating cooperation pursuant to Article 5.8 (Cooperation); (c) facilitating technical discussions; (d) reporting, where appropriate, its findings to the CTG; and (e) carrying out other functions as may be delegated by the CTG. Article 5.13 Annexes 1. The agreed text of Bilateral Cooperation on Pharmaceutical Products is placed in Annex 5A. 2. The agreed text of Mutual Recognition of Halal Certification is placed in Annex 5B. 3. The agreed text on Organic Products is placed in Annex 5C.
CHAPTER 6 CUSTOMS PROCEDURES AND TRADE FACILITATION For the purposes of this Chapter: Article 6.1 Definitions "Customs Administration" means any administration that is responsible under law of a Party for customs law and regulations. For Sultanate of Oman, it is Directorate General of Customs, Royal Oman Police and for India, it is the Central Board of Indirect Taxes & Customs; "customs laws and regulations" means laws and regulations concerning the importation, exportation, transit of goods, or any other customs procedures, whether relating to customs duties, taxes or any other charges collected by the Customs Administrations, or to measures for prohibition, restriction, or control enforced by the Customs Administrations; "customs procedures" means the measures applied by the Customs Administration of a Party to goods and to the means of transport that are subject to its customs laws and regulations; "persons" means both natural or legal persons, unless the context otherwise requires; "Authorised Economic Operators (AEO)" means, in accordance with the Trade Facilitation Agreement, the programme which recognises an operator involved in the international movement of goods in whatever function that has been approved by the national Customs Administration as complying with the World Customs Organisation (WCO) supply chain security standards; "Mutual Recognition Arrangement (MRA)" means the arrangement between the Parties that mutually recognises AEO authorisations that have been properly granted by the respective Customs Administrations; and "TFA commitments" means respective commitments of both Parties under the Trade Facilitation Agreement.
Article 6.2 Scope and Objectives 1. This Chapter shall apply, in accordance with each Party's respective laws and regulations, to customs procedures required for clearance of goods traded between the Parties. 2. The objectives of this Chapter are to: (a) promote trade facilitation for ~oods traded between the Parties while ensuring effective customs controls; (b) ensure transparency of each Party's customs laws, regulations, and procedural requirements and, where possible, conformity thereof with applicable international standards; (c) ensure using of effective methods to combat fraud and promote legitimate trade; (d) simplify and modernise customs procedures of the Parties; and (e) enhance cooperation between the Parties in the field of customs and trade facilitation. Article 6.3 General Provisions 1. The Parties recognise the importance of customs and trade facilitation matters in the evolving global trading environment. The Parties shall reinforce cooperation in this area with a view to ensuring that the relevant legislation and procedures, as well as the administrative capacity of the relevant administrations, fulfil the objectives of promoting trade facilitation while ensuring effective customs control. 2. The Parties agree that their customs laws and regulations and customs procedures shall be transparent, non-discriminatory, consistent and avoid unnecessary procedural obstacles to trade. 3. The Partie.$.affirm their rights and obligations under the Trade Facilitation Agreement: 4. The 'Parties shall eri'sur~1that their customs procedures conform, where possible, to the stan~ards and ~ecominended practices of the WCO. 5. The Parties shall ensure that their Customs Administration, to the extent possible, periodically revi~w its customs procedures with a view to their further simplification and development to facilitate bilateral trade. , _.-.-.-..... "' . ' . . ?
6. The Parties recognise that legitimate public policy objectives, including in relation-to security, safety and fight against fraud shall not be compromised in any manner. Article 6.4 Transparency measures 1. Each Party shall ensure that its laws, regulations, guidelines, procedures, tariffs, fees and administrative rulings governing customs matters are promptly published, on the internet in the English language, to the extent possible. 2. Each Party shall designate, establish, and maintain one or more enquiry points consistent with its TFA commitments to address reasonable enquiries from interested persons pertaining to customs matters, and shall endeavour to make available publicly through electronic means, information concerning procedures for-making such enquiries. 3. Nothing in this Agreement shall require any Party to publish internal operational guidelines including those related to conducting risk analysis and targeting methodologies. 4. Each Party shall, to the extent practicable, and in a manner consistent with its law and TFA commitments, ensure that new or amended laws and regulations of general application related to the movement, release, and clearance of goods, including goods in transit, are published or information on them made otherwise publicly available, as early as possible before their entry into force,. so that interested parties have the opportunity to become acquainted with the new or amended laws and regulations. Such informatfori and publications� shall be made available rn the English language. 5. Each Party to the extent possible shall in a manner consistent with its law, ensure that new or amended customs laws and regulations are published online, or information on them made otherwise publicly available, as early as possible before their entry into force to enable traders and other interested parties to become acquainted with them. 6. Changes to-duty rates o.r tariff r:ates,,. measures that have a relie,ving effect, mec;1sures the effectiveness of which would be undermined as a result of compliance with -paragraph 4, measures applied in urgent circurnstqn.ees, or minor changes to law are each excluded from the obligations in paragraphs 1 to 5.
Article 6.5 Risk Management 1. Each Party shall adopt a risk management approach using electronic data processing techniques in its customs activities, based on its risk evaluation criteria concerning goods and supply chain entities, in order to facilitate the clearance of low-risk consignments, while focusing its customs control on high-risk goods. 2. Each Party shall design and apply risk management in a manner so as to avoid arbitrary or unjustifiable discrimination, or disguised restrictions on international trade. Article 6.6 Automation 1. For the purposes of trade facilitation, the Parties shall endeavour to provide an electronic environment that supports business transactions between the Customs Administrations and trading entities. 2. The Parties shall exchange views and information on realising and promoting paperless communications between the Customs Administrations and trading entities. 3. The Customs Administration of each Party, in implementing initiatives which provide for the use of paperless communications, shall take into account the methodologies agreed at the WCO. Article 6.7 Single Window 1. Each Party shall establish or maintain single window systems enabling traders to submit documentation or data requirements for importation, exportation, or transit of goods through a single entry point to the participating authorities or agencies. 2. Each Party shall endeavour to inform an applicant using single window of the status of the release of goods in a timely manner. , Article 6.8 Advance Rulings 1. In accordance with its TFA commitments, each Party shall provide for the issuance of an advance ruling, prior to the importation of a good into
its territory, to an importer of the good in its territory, or to an exporter or producer of the good in the territory of the other Party. 2. 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. 3. For the purposes of paragraph 1, each Party shall issue rulings as to whether the good qualifies as an originating good or to assess the goad's tariff classification. Each Party shall issue its determination regarding the origin or classification of the good within a reasonable and time-bound manner from the date of receipt of a complete application for an advance ruling. 4. The importing Party shall apply an advance ruling issued by it under paragraph 1 on the date that the ruling is issued or on a later date specified in the ruling. The ruling shall remain in effect for a reasonable period of time and in accordance with the national procedures on advance rulings. 5. Where 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. Where a Party revokes, modifies or invalidates advance rulings with retroactive effect, it may only do so where the ruling was based on false or misleading information. 6. The advance ruling issued by the Party shall be binding only on the person to whom the ruling is issued. 7. 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 a post clearance audit or are under review before any governmental agency or an administrative, judicial, or quasi-judicial review or appeal. A Party that declines to issue an advance ruling shall promptly in accordance with its national procedures notify, in writing, the person requesting the ruling, setting out the relevant facts and circumstances and the basis for its decision. 8. The importing Party may: (a) modify an advance ruling in such respects as it considers appropriate and as per its laws and regulations or system on
advanced ruling, if the ruling was based on incorrect facts or mistake of law; (b) revoke or find the advance ruling non-binding if there is a change in the material facts or circumstances or law on which the ruling was based; or (c) revoke the advance ruling from when it was issued if the advance ruling has been obtained by fraud or misrepresentation of facts. 9. Where a Party revokes or modifies an advance ruling, it shall provide written notice to the applicant setting out the relevant facts and the basis for its decision. 10. Each Party shall provide that any modification or revocation of an advance ruling shall be effective on the date on which the modification or revocation is issued, or on such later date as may be specified therein, and shall not be applied to importations of a good that have occurred prior to that date, unless the advance ruling was based on incomplete, incorrect, false, or misleading information. 11. Each Party shall provide, upon written request of an applicant, an opportunity to review an advanced ruling, or the decision to revoke, modify or invalidate it.1 12. For the purpose of the Article, each Party shall issue advance rulings in accordance with the provisions of Chapter 3 (Rules of Origin). 13. Each Party may require that the applicant have legal representation or registration in its territory. To the extent possible, such requirements shall not restrict the categories of persons eligible to apply for advance rulings, with particular consideration for the specific needs of small and medium-sized enterprises. These requirements shall be clear and transparent and not constitute a means of arbitrary or unjustifiable discrimination. ., ... _, . -. .. 1 Under this paragraph, a review may, either before or after the ruling has been acted upon, be provided by the official, office, or authority that issued the ruling, a higher or independent administrative authority, or a judicial authority; and a Party is not required to provide the applicant with recourse to paragraph 1 of Article 6.16 (Review and Appeal). 117
Article 6.9 Penalties 1. Each Party shall maintain measures imposing criminal, civil or administrative penalties, whether solely or in combination, for violations of the Party's customs laws and regulations or customs procedures. 2. Each Party shall ensure that penalties issued for a breach of its customs laws and regulations or customs procedures are imposed only on the person(s) responsible for the breach under its laws. 3. Each Party shall ensure that the penalty imposed by its Customs Administration is dependent on the facts and circumstances of the case and is commensurate with the degree and severity of the breach, and consistent with its laws and regulations. 4. Each Party shall ensure that it maintains measures to avoid conflicts of interest in the assessment and collection of penalties and duties. Each Party shall ensure that it maintains measures to avoid creating an incentive� for the assessment or collection of a penalty that is inconsistent with paragraph 3. 5. Each Party shall ensure that if a penalty is imposed by its Customs Administration for a breach of its customs laws and regulations or customs procedures, an explanation in writing is provided to the person(s) upon whom the penalty is imposed specifying the nature of the breach and the law, regulation or procedure used for determining the penalty amount. Article 6.1 O Pre-arrival Processing 1. Each Party shall adopt or maintain procedures allowing for the submission of documents and other information required for the importation of goods, in order to begin processing prior to the arrival of goods with a view to expediting the release of goods upon arrival. 2. Each Party shall provide, as appropriate, for advance lodging of documents and the other information referred to in paragraph 1 in electronic format for pre-arrival processing of such documents.
Article 6.11 Release of Goods 1. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade, consistent with its laws, regulations and procedures. 2. Pursuant to paragraph 1, each Party shall adopt or maintain procedures that: (a) provide for the release of goods without unnecessary delay upon receipt of the customs declaration and fulfilment of all applicable requirements and procedures; (b) provide for the electronic submission and processing of documentation and data, including manifests, prior to the arrival of the goods, in order to expedite the release of goods from customs control upon arrival; (c) Allow goods to be released at the point of arrival to the extent possible without requiring temporary transfer to warehouses or other facilities; and (d) require that, to the extent permitted by its customs laws and regulations, the importer be informed if a Party does not promptly release goods, including, the reasons why the goods are not released and which border agency, if not the Customs Administration, has withheld release of the goods. 3. Nothing in this Article requires a Party to release goods if its requirements for release have not been met nor prevents a Party from liquidating or requiring a security deposit in accordance with its customs laws and regulations. 4. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade, consistent with laws, regulations and procedures, and Article 7.3 of the Trade Facilitation Agreement. 5. Each Party may allow, to.the extent practicable and in accordance with its customs laws and regulations, goods intended for import to be moved within its territory under customs control from the point of entry into the Party's territory to another customs office in its territory from where the goods are.intended to be released, provided the applicable regulatory requirements are met. 6. Nothing in.this Article shall:
(a) in case of suspicion or as per the risk management, affect the right of a Party to examine, detain, seize, confiscate or refuse entry of goods, or to carry out post-clearance audits, including in connection with the use of risk management systems; or (b) prevent a Party from requiring, as a condition for release, the submission of additional information and the fulfilment of non�automatic licensing requirements. Article 6.12 Authorised Economic Operators 1. Each Party shall establish or maintain a trade facilitation partnership programme for operators who meet specified criteria, in accordance with the SAFE Framework of Standards to Secure and Facilitate Global Trade adopted at the June 2005 WCO Session in Brussels and as updated from time to time (the "SAFE Framework"). 2. Each Party shall publish its specified criteria to qualify as an AEO. The specified criteria shall relate to compliance, or the risk of non�compliance, in accordance with requirements specified in the Party's customs laws and regulations. The Parties may use the criteria set out in paragraph 7.2(a) of Article 7 of the Trade Facilitation Agreement. 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. The specified criteria shall be designed or applied so as to allow the participation of small and medium-sized enterprises. 4. The programme referred to in paragraph 1 shall include specific benefits for operators that meet the specified criteria, taking into account the commitments of each Party.under paragraph 7.3 of Article 7 of the Trade Facilitation Agreement. 5. The Parties shall endeavour to conclude an MRA on the programme referred to in paragrc~ph 1, taking into account paragraphs 2 through 4, as soon m~ possible, after entry into force of this Agreement.
Article 6.13 Perishable Goods 1. For the purposes of this Article, "perishable goods" means 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, in normal circumstances, release perishable goods immediately from customs control on arrival at each point of presentation to customs provided that: (a) the Party has received and checked all customs information and documentation required to release all goods in the shipment on or prior to presentation to customs; (b) no further examination of this information or documentation is required; (c) the goods, or any other goods in the same shipment, are not subject to physical inspection or examination; and (d) all non-customs regulatory checks required for release have been completed. 3. If further examination of the customs information or documentation is required, each Party shall, in normal circumstances, release perishable goods from customs control within shortest time possible of arrival at each point of presentation to customs provided that the conditions in subparagraphs (a), (c), and (d) of paragraph 2 are met. 4. Each Party shall provide, in exceptional circumstances, and if appropriate for the release of perishable goods outside the business hours of its customs auth~rity. 5. With a view to expediting the release of goods, each Party shall ensure that any physical inspection or� examination of perishable goods is conducted without undue delay. 6. Each Party shall giye appropriate priority to perishable goods when scheduling and conducting any inspections or examinations that may be required. 7. Each Party shall either arr~nge, or allow an importer to arrange, for the appropriate storage of perishable goods pending their �release. Each Party may require that its customs authority approve or designate any storage.facilities arrang~p P� the i11Jporter, Each Party shall, if possible, release the perishable gQQQS directly..from,those storage facilities ...
8. Nothing in this Article requires a Party to release goods if regulatory requirements for release have not beeh met. Article 6.14 Border Agency Cooperation Each Party shall ensure that its authorities and agencies responsible for border controls and procedures dealing with the importation, exportation, and transit of goods cooperate with one another and coordinate their activities in order to facilitate trade pursuant to this Chapter. Article 6.15 Expedited Shipments 1. Each Party shall adopt or maintain expedited customs procedures for goods entered through air cargo facilities while maintaining appropriate customs control and selection. These procedures, subject to TFA commitments, shall: (a) provide for information necessary to release an expedited shipment to be submitted and processed before the shipment arrives; (b) minimise the documentation required for the release of expedited shipments, and to the extent possible, provide for release based on a single submission of information on certain shipments through electronic means; (c) under normal circumstances, provide for expedited shipments to be released as soon as possible after submission of the necessary customs documents, provided the shipment has arrived and applic.able customs duties have been assessed where applicable; (d) apply to shipments of any weight or value recognizing that a Party may require formal entry procedures as a condition for release, including declaration and supporting documentation and payment of customs duties, based on the good's weight or value; and (e) under normal circumstances, provide that no customs duties will be collected on expedited shipments_ valued or assessed to duty
at or below a fixed amount set under the Party's law.2 Each Party shall endeavour to review the amount periodically taking into account factors that it may consider relevant. Article 6.16 Review and Appeal 1. Each Party shall ensure that any person to whom it issues a decision on a customs matter has access to: (a) an administrative appeal to or review by an administrative authority higher than or independent from the official or office that issued the decision; or (b) a judicial appeal or review of the decision. 2. Each Party shall ensure that its procedures for appeal and review are carried out in a non-discriminatory and timely manner. 3. Each Party shall ensure that an authority conducting a review or appeal under paragraph 1 notifies the person in writing of its determination or decision in the review or appeal, and the reasons for the determination or decision. Article 6.17 Customs Cooperation 1. With a view to further enhancing customs cooperation and exchange of information between the Customs Administrations to secure and facilitate lawful trade through the proper application of customs laws and regulations for the prevention, investigation and combating of customs offences, and to ensure the security of the international trade supply chain, each Party shall implement and comply with the obligations in the Customs Mutual Assistance Agreement (CMAA). 2. The Parties shall endeavour to conclude a customs mutual administrative assistance agreement with a view to enhancing cooperation for the purposes of assisting the other Party in the administra'tion and enforcement of its customs laws and regulations, including its measures concerning customs offences. 2 Notwithstanding this Article, a Party may assess customs duties or may require formal entry documents for restricted or controlled goods, such as goods subject to import licensing or similar requirements.
3. The Parties shall facilitate initiatives for the exchange of pre-arrival customs data as well as information on best practices in relation to the implementation and management of customs procedures described in this Chapter, and in accordance with the CMAA. Article 6.18 Confidentiality Any information received under this Chapter shall be treated as confidential pursuant to the terms of the CMAA. Article 6.19 Subcommittee on Customs Procedures and Trade Facilitation 1. The Parties agree to establish a Subcommittee on Customs Procedures and Trade Facilitation (CPTF Subcommittee) under the CTG, consisting of representatives of each Party's competent authorities from Customs Administrations. 2. The functions of the CPTF Subcommittee shall include: (a) cooperating in the administration and uniform interpretation of this Chapter; (b) monitoring the effective operation and implementation of this Chapter, including the transparent and consistent application of customs procedures of the Parties; (c) cooperatif1g to further� :?simplify and implement the customs procedures under this Chapter; (d) exchanging information on matters related to this Chapter; (e) communicating the necessary contact details of the CPTF Subcommittee members for the purposes of this Chapter; (f) considering any matters referred to it by the Joint Committee or the CTG; and� (g) any other matter as the CPTF Subcommittee mutually agrees . ? ? ) :; ~ . . '-';.; ~ ' ' .... : . :-.' ?-' .. ' 3. The CPTF Subcommitt~e, s.h.all meet within 6 months of the date of entry into force of this Agreement and thereafter annually.
CHAPTER 7 TRADE REMEDIES For the purposes of this Chapter: Article 7.1 Definitions "Anti-Dumping Agreement" means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement; "Safeguards Agreement" means the Agreement on Safeguards, set out in Annex 1A to the WTO Agreement; and "SCM Agreement" means the Agreement on Subsidies and Countervailing Measures, set out in Annex 1A to the WTO Agreement. Article 7.2 Anti-Dumping and Countervailing Measures Each Party retains its rights and obligations under Article VI of the GATT 1994, the Anti-Dumping Agreement, and the SCM Agreement. Article 7.3 Global Safeguard Measures 1. Each Party retains its rights and obligations under Article XIX of the GA TT 1994 and the Safeguards Agreement. 2. Neither Party shall apply with respect to the same good at the same time: (a) a bilateral safeguard measure as provided in Article 7.4 (Bilateral Safeguard Measures); and (b) a measure under Article XIX of the GATT 1994 and the Safeguards Agreement.
Article 7.4 Bilateral Safeguard Measures Definitions: For the purposes of this Article: "bilateral safeguard measure" means a measure described in paragraph 1 of Article 7.4; "domestic industry" means with respect to an imported good, the producers as a whole of the like or directly competitive good operating within the territory of a Party, or those producers whose collective production of the like or directly competitive good constitutes a major proportion of the total domestic production of that good; "serious injury" means a significant overall impairment in the position of a domestic industry; and "threat of serious injury" means serious injury that, on the basis of facts and not merely on allegation, conjecture or remote possibility, is clearly imminent. General: 1. If, as a result of the reduction or elimination of a customs duty under this Agreement, an originating good of the other Party is being imported into the territory of a Party in such increased quantities, either in absolute terms or relative to domestic production, and under such conditions that the imports of such originating good from the other Party causes serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party may: (a) suspend the further reduction of any rate of customs duty on the imports of the originating good provided for under this Agreement; (b) increase the rate of customs duty on the imports of the originating good to a level not to exceed the lesser of: (i) the most favoured nation applied rate of duty on the good in effect at the time the measure is applied; and (ii) the most favoured nation applied rate of duty on the good in effect on the day immediately preceding the date this Agreement enters into force. 2. The Parties agree that neither tariff rate quotas nor quantitative restrictions are permissible forms of bilateral safeguard measures. I '
3. The Parties agree that the right to apply bilateral safeguard measures shall be permanent for the duration of this Agreement. Nonetheless, upon a request by a Party, the Joint Committee may, not less than 5 years after the date on which the elimination or reduction of the customs duty on all the goods is completed, discuss and review the implementation and operation of this Article. Notification and Consultation: 4. A Party shall notify the other Party in writing or by electronic communication: (a) within 7 days from the initiation of a bilateral safeguard investigation; (b) immediately upon making a finding of serious injury or threat thereof caused by increased imports; and (c) immediately upon application of provisional or a definitive bilateral safeguard measure or extending the measure. 5. In making the notification referred to in subparagraphs 4(b) and 4(c), the Party proposing to apply a bilateral safeguard measure shall provide the other Party with all pertinent information, which shall include evidence of serious injury or threat thereof caused by the increased imports, precise description of the good involved and the proposed measure and expected duration. 6. A Party proposing to apply a definitive bilateral safeguard measure or proposing the extension of a definitive bilateral safeguard measure shall provide adequate opportunity for prior consultations with the other Party as far in advance, of making a definitive finding for applying or extending any such measure, with a view to reviewing the information arising from the investigation, and exchanging views on the measure. The Parties shall in such consultations, review, inter afia, the information provided by the competent investigating authority, to determine: (a) compliance with this Article; (b) whether the proposed measure should be applied; and (c) the ? appropriateness of the proposed ? coriiideration of alternative� measures .? measure, :, including I ? Conditions and Limitations: 7. A Party shall apply a bilateral safeguard measure only following an investigation by the Party's competent �authorities in accordance with Article 3 and Article 4.2(c) of the Safeguards Agreement, and to this end,
Article . 3 and Article 4.2(c) of the Safeguards Agreement are incorporated into and form a part of this Agreement, mutatis mutandis. 8. While conducting a bilateral safeguard investigation, a Party shall comply whh the requirements of Article 4.2(a) of the Safeguards Agreement, and to this end, Article 4.2(a) of the Safeguards Agreement is incorporated into and forms a part of this Agreement, mutatis mutandis. 9. Each Party shall ensure that its competent authorities complete any such investigation within 8 months from the date of initiation which may be extended up to 1 year by the competent authority. 10. Neither Party may apply a bilateral safeguard measure: (a) except to the extent, and for such time, as may be necessary to prevent or remedy serious injury and to facilitate adjustment; or (b) for a period exceeding 2 years, except that the period may be extended by up to 2 years if the competent authorities of the importing Party determine, in conformity with the procedures specified in this Article, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting, provided that the total period of application of a bilateral safeguard measure, including the period of initial application and any extension thereof, shall not exceed 4 years. 11. No bilateral safeguard measure shall be applied to the import of an originating good for a period of 1 year from the date of commencement of tariff reduction or tariff elimination for that originating good provided for under this Agreement. 12. When a Party terminates a bilateral safeguard measure, the rate of customs duty for the originating good subject to that bilateral safeguard measure shall be the rate that, according to that Party's Schedule of Tariff Commitments in Annex 2A (Schedule of Specific Tariff Commitments of India) or Annex 2B (Schedule of Specific Tariff Commitments of Oman), would have been in effect but for that bilateral safeguard measure. 13. No bilateral safeguard measure shall be applied again to the import of an originating good that has been previously subject to such measure for a period of time equal to the period during which the previous measure was applied or 1 year since the expiry of such measure, whichever is longer.
14. Notwithstanding the provisions of paragraph 13, a bilateral safeguard measure with a duration of 180.days or less may be applied again to the import of an originating good if: (a) at least 1 year has elapsed since the date of introduction of a bilateral safeguard measure on the import of that originating good; and (b) such a bilateral safeguard measure has not been applied on the same originating good more than twice in the 4 year period immediately preceding the date of introduction of the measure. 15. Where the expected duration of a bilateral safeguard measure is over 1 year, the Party applying the bilateral safeguard measure shall progressively liberalise it at regular intervals during the period of application. Provisional Safeguard Measures: 16. In critical circumstances where delay would cause damage that would be difficult to repair, a Party may apply a bilateral safeguard measure on a provisional basis pursuant to a preliminary determination by its competent authorities that there is clear evidence that imports of an originating good from the other Party have increased as a result of the reduction or elimination of a customs duty under this Agreement, and such imports have caused serious injury, or threat thereof, to the domestic industry. 17. If a Party's competent authorities make a preliminary determination, the Party shall make such determination available to interested parties and shall provide interested parties at least 15 days to comment and submit their arguments with respect to such determinations. 18. The duration of any provisional measure shall not exceed 200 days, during which time the Party shall comply with the requirements of paragraphs 5, 7, and 8. 19. The Party shall promptly refund any tariff increases if the investigation described in paragraphs 7 and 8 results in a finding that the requirements of paragraph 1 are not met. The duration of any provisional measure shall be counted as part of the period described in subparagraph 10(b). Compensation: 20. No later than 30 days after a Party applies a definitive bilateral safegua~d measure, the Party shall afford an opportunity to the other Party to consult regarding the appropriate trade liberalising compensation in the form of concessions having substantially equivalent trade effects. The
applying Party shall provide such compensation as the Parties mutually agree. 21. If the Parties are unable to agree on compensation within 30 days in the consultations, the Party against whose originating good the bilateral safeguard measure is applied may suspend the application of concessions with respect to the originating goods of the other Party that has trade effects substantially equivalent to that of the bilateral safeguard measure. The Party exercising the right of suspension may suspend the application of concessions only for the minimum period necessary to achieve substantially equivalent trade effects. 22. A Party against whose originating good the bilateral safeguard measure is applied shall notify the Party applying the bilateral safeguard measure in writing at least 30 days before it suspends concessions in accordance with paragraph 21. 23. The right to suspend the application of concessions referred to in paragraph 21 shall not be exercised for: (a) the first 2 years that the measure is in effect; and (b) the first 3 years during which the bilateral safeguard measure is in effect, where it has been extended beyond 2 years. 24. The applying Party's obligation to provide compensation under paragraph 20 and the other Party's right to suspend concessions under paragraph 21 shall cease on the termination of the bilateral safeguard measure. Article 7.5 Subcommittee on Trade Remedies 1. The Parties agree to establish a Subcommittee on Trade Remedies under the CTG, consisting of representatives of each Party's competent authorities. 2. The Subcommittee on Trade Remedies shall meet annually or when requested by either Party. Article 7.6 Non-Application of Dispute Settlement Neither Party shall have recourse to dispute settlement under Chapter 13 (Dispute Settlement) for any matter arising under Article 7.2 and Article 7.3.
CHAPTER 8 TRADE IN SERVICES For the purposes of this Chapter: Article 8.1 Definitions "a service supplied in the exercise of governmental authority" means any service which is supplied neither on a commercial basis nor in competition with one or more service suppliers; "aircraft repair and maintenance services" means such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service and do not include so-called line maintenance; "commercial presence" means any type of business or professional establishment, including through: (a) the constitution, acquisition or maintenance of a juridical person; or (b) the creation or maintenance of a branch or a representative office, within the territory of a Party for the purpose of supplying a service; "computer reservation system services" means services provided by computerised systems that contain information about air carriers' schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued; "juridical person" means any legal entity duly constituted or otherwise organised under the law of that Party, whether for profit or otherwise, and whether privately-or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship, or association; A "juridical person". is: (a) owned by persor:,s of_a Party if more than 50 per cent of the equity interest in it is benefidally owned by persons of that Party; (b) controlled by persons of a Party if such persons have the power to name a majority of its directors or otherwise to legally direct its actions; (c) affiliated with another per$on.when it controls, or is controlled by, 131