6. For greater certainty, Articles 10.6 and 10.8 shall not be construed as preventing a Party from prescribing information requirements, including for statistical purposes, in connection with the establishment or operation of investors of the other Party or of a covered enterprise, provided that it does not constitute a means to circumvent that Party's obligations under those Articles.
Article 10.12. Denial of Benefits
A Party may deny to an investor of the other Party or a covered enterprise the benefits of this Chapter if the denying Party adopts or maintains measures related to the maintenance of international peace and security, including the protection of human rights, which:
(a) prohibit transactions with that investor or covered enterprise; or
(b) would be violated or circumvented if the benefits of this Chapter were accorded to that investor or covered enterprise, including if the measures prohibit transactions with a person who owns or controls either of them.
Article 10.13. Sub-Committee on Services and Investment
The Sub-Committee on Services and Investment ("Sub-Committee") is established pursuant to Article 33.4(1). When addressing matters related to investment, the Sub-Committee shall monitor and ensure proper implementation of this Chapter and of Annexes 10-A, 10-B and 10-C.
Chapter 11. CROSS-BORDER TRADE IN SERVICES
Article 11.1. Scope
1. This Chapter applies to measures of a Party affecting cross-border trade in services supplied by service suppliers of the other Party. Such measures include measures that affect:
(a) the production, distribution, marketing, sale and delivery of a service;
(b) the purchase or use of, or payment for, a service;
(c) the access to and use of, in connection with the supply of a service, services which are required by a Party to be offered to the public generally, including distribution, transport and telecommunications networks; and
(d) the provision of a bond or other form of financial security, as a condition for the supply of a service.
2. This Chapter does not apply to:
(a) financial services, as defined in Article 18.2;
(b) audio-visual services;
(c) national maritime cabotage (1);
(d) domestic and international air services or related services in support of air services (2), whether scheduled or non-scheduled, and services directly related to the exercise of traffic rights, other than:
(i) aircraft repair and maintenance services during which an aircraft is withdrawn from service;
(ii) selling and marketing of air transport services;
(iii) computer reservation system (CRS) services; and
(iv) ground handling services;
(e) public procurement; and
(f) subsidies or grants provided by a Party or by a state-owned enterprise, including government- supported loans, guarantees and insurance.
Article 11.2. Definitions
For the purposes of this Chapter and Annexes 10-A, 10-B and 10-C:
(a) "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;
(b) "computer reservation system (CRS) 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;
(c) "cross-border trade in services" or "cross-border supply of services" means the supply of a service:
(i) from the territory of a Party into the territory of the other Party; or
(ii) in the territory of a Party to a service consumer of the other Party;
(d) "enterprise" means a juridical person, branch or representative office set up through establishment;
(e) "ground handling services" means the supply at an airport, on a fee or contract basis, of the following services: airline representation, administration and supervision; passenger handling; baggage handling; ramp services; catering, except for the preparation of food; air cargo and mail handling; fuelling of an aircraft; aircraft servicing and cleaning; surface transport; and flight operation, crew administration and flight planning; ground handling services do not include: self-handling; security; line maintenance; aircraft repair and maintenance; or management or operation of essential centralised airport infrastructure, such as de-icing facilities, fuel distribution systems, baggage handling systems and fixed intra-airport transport systems;
(f) "juridical person of a Party" means (1):
(i) for the European Union:
(A) a juridical person constituted or organised under the law of the European Union or of at least one of its Member States and engaged in substantive business operations (2) in the territory of the European Union; and
(B) shipping companies established outside the European Union, and controlled by natural persons of a Member State, whose vessels are registered in, and fly the flag of, a Member State;
(ii) for Chile:
(A) a juridical person constituted or organised under the law of Chile and engaged in substantive business operations in the territory of Chile; and
(B) shipping companies established outside Chile, and controlled by natural persons of Chile, whose vessels are registered in, and fly the flag of, Chile;
(g) "selling and marketing of air transport services" means opportunities for the air carrier concerned to sell and market freely its air transport services, including all aspects of marketing such as market research, advertising and distribution; these activities do not include the pricing of air transport services or the applicable conditions;
(h) "service" means any service in any sector except services supplied in the exercise of governmental authority;
(i) "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; and
(j) "service supplier of a Party" means any natural or juridical person of a Party that seeks to supply or supplies a service.
Article 11.3. Right to Regulate
The Parties reaffirm the right to regulate within their territories to achieve legitimate policy objectives, such as the protection of public health, social services, education, safety, the environment, including climate change, public morals, social or consumer protection, privacy and data protection, or the promotion and protection of cultural diversity.
Article 11.4. National Treatment
1. Each Party shall accord to services and service suppliers of the other Party treatment no less favourable than the treatment it accords, in like situations, to its own services and service suppliers.
2. The treatment accorded by a Party under paragraph 1 means:
(a) with respect to a regional or local government of Chile, treatment no less favourable than the most favourable treatment accorded, in like situations, by that level of government to its own services and service suppliers;
(b) with respect to a government of, or in, a Member State, treatment no less favourable than the most favourable treatment accorded, in like situations, by that government to its own services and service suppliers.
3. A Party may meet the requirement set out in paragraph 1 by according to services and service suppliers of the other Party either formally identical treatment or formally different treatment to that it accords to its own services and service suppliers.
4. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of a Party when compared to service suppliers of the other Party.
5. Nothing in this Article shall be construed as requiring a Party to compensate for inherent competitive disadvantages which result from the foreign character of the relevant services or services suppliers.
Article 11.5. Most-favoured-nation Treatment
1. Each Party shall accord to services and service suppliers of the other Party treatment no less favourable than the treatment it accords, in like situations, to services and service suppliers of a third country.
2. Paragraph 1 shall not be construed as obliging a Party to extend to services and service suppliers of the other Party the benefit of any treatment resulting from measures providing for the recognition of standards, including of the standards or criteria for the authorisation, licensing or certification of a natural person or an enterprise for carrying out an economic activity, or of prudential measures.
3. For greater certainty, the treatment referred to in paragraph 1 does not include dispute resolution procedures or mechanisms provided for in other international treaties or trade agreements. The substantive provisions in other international treaties or trade agreements do not in themselves constitute "treatment" as referred to in paragraph 1 and thus cannot give rise to a breach of this Article, absent measures adopted or maintained by a Party. Measures of a Party applied pursuant to such substantive provisions may constitute "treatment" under this Article and thus give rise to a breach of this Article.
Article 11.6. Local Presence
A Party shall not require a service supplier of the other Party to establish or maintain an enterprise or to be resident in its territory as a condition for the cross-border supply of a service.
Article 11.7. Market Access
In the sectors or subsectors where market access commitments are undertaken, a Party shall not adopt or maintain, either on the basis of its entire territory or on the basis of a territorial subdivision, measures that:
(a) impose limitations on:
(i) the number of service suppliers, whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;
(ii) the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(iii) the total number of service operations or the total quantity of services output, expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test (1); or
(iv) the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; or
(b) restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service.
Article 11.8. Non-conforming Measures
1. Articles 11.4, 11.5 and 11.6 do not apply to:
(a) any existing non-conforming measure that is maintained by:
(i) for the European Union:
(A) the European Union, as set out in Appendix 10-A-1;
(B) the central government of a Member State, as set out in Appendix 10-A-1;
(C) a regional level of government of a Member State, as set out in Appendix 10-A-1; or
(D) a local level of government; and
(ii) for Chile:
(A) the central government, as set out in Appendix 10-A-2;
(B) a regional level of government, as set out in Appendix 10-A-2; or
(C) a local level of government;
(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a) of this paragraph; or
(c) a modification to any non-conforming measure referred to in subparagraph (a) of this paragraph, to the extent that the modification does not decrease the conformity of the measure, as it existed immediately before the amendment, with Articles 11.4, 11.5 and 11.6.
2. Articles 11.4, 11.5 and 11.6 do not apply to any measure of a Party with respect to sectors, sub-sectors or activities as set out in its schedule in Annex 10-B.
3. Article 11.7 does not apply to any measure of a Party with respect to committed sectors, subsectors or activities, as set out in Annex 10-C.
Article 11.9. Denial of Benefits
A Party may deny a service supplier of the other Party the benefits of this Chapter if the denying Party adopts or maintains measures related to the maintenance of international peace and security, including the protection of human rights, which:
(a) prohibit transactions with that service supplier, or with a person who owns or controls that service supplier; or
(b) would be violated or circumvented if the benefits of this Chapter were accorded to that service supplier.
Article 11.10. Sub-Committee on Services and Investment
The Sub-Committee on Services and Investment ("Sub-Committee") is established pursuant to Article 33.4(1). When addressing matters related to services, the Sub-Committee shall monitor and ensure proper implementation of this Chapter, Chapters 12, 13, 14, 15, 16, 17 and 19 and Annexes 10-A, 10-B, 10-C, 12-A, 12-B, 12-C, 14-A and 14-B.
Chapter 12. TEMPORARY PRESENCE OF NATURAL PERSONS FOR BUSINESS PURPOSES
Article 12.1. Scope
1. This Chapter applies to measures of a Party concerning the performance of economic activities through the entry and temporary stay in its territory of natural persons of the other Party who are business visitors for establishment purposes, investors, intra-corporate transferees,
short-term business visitors, contractual services suppliers and independent professionals.
2. This Chapter does not apply to the sectors referred to in subparagraphs (b), (c) and (d) of Article 11.1(2).
3. This Chapter does not apply to measures of a Party affecting natural persons of the other Party seeking access to its employment market, or to measures regarding citizenship, nationality, residence or employment on a permanent basis.
4. Nothing in this Agreement shall prevent a Party from applying measures regulating the entry of natural persons of the other Party into, or their temporary stay in, its territory, including measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across, its border, provided that those measures are not applied in a manner as to nullify or impair the benefits accruing to the other Party under this Agreement.
5. The sole fact that a Party requires persons of the other Party to obtain a visa shall not be construed as nullifying or impairing the benefits accruing to the other Party under this Agreement.
6. To the extent that commitments are not undertaken under this Chapter, all requirements provided for in the law of a Party regarding the entry and temporary stay of natural persons shall continue to apply, including laws and regulations concerning the period of stay.
7. Notwithstanding this Chapter, all requirements provided for in the law of a Party regarding work and social security measures, including laws and regulations concerning minimum wages and collective wage agreements, shall continue to apply.
8. Commitments under this Chapter on the entry and temporary stay of natural persons for business purposes do not apply in cases where the intent or effect of the entry and temporary stay is to interfere with or otherwise affect the outcome of any labour or management dispute or negotiation, or the employment of any natural person who is involved in that dispute.
Article 12.2. Definitions
1. The definitions in Articles 10.2 and 11.2 apply to this Chapter and to Annexes 12-A, 12-B and 12-C, with the exception of the definition of investor of a Party in subparagraph (j) of Article 10.2(1).
2. For the purposes of this Chapter and Annexes 12-A, 12-B and 12-C:
(a) "business sellers" means short-term business visitors who:
(i) are representatives of a service or goods supplier of a Party for the purposes of negotiating the sale of services or goods, or entering into agreements to sell services or goods for that supplier, including: attending meetings or conferences; engaging in consultations with business colleagues; and taking orders or negotiating contracts with an enterprise located in the territory of the other Party;
(ii) are not engaged in the supply of a service in the framework of a contract concluded between an enterprise that has no commercial presence in the territory of the Party where the short-term business visitors are staying temporarily, and a consumer in that territory; and
(iii) are not commission agents;
(b) "business visitors for establishment purposes" means natural persons working in a senior position within a juridical person of a Party who are responsible for establishing an enterprise of such juridical person in the territory of the other Party, who do not offer or provide services or engage in any economic activity other than that required for establishment purposes, and who do not receive remuneration from a source located within the other Party;
(c) "contractual services suppliers" means natural persons employed by a juridical person of a Party which is not itself established in the territory of the other Party and is not an agency for placement and supply services of personnel, or acting through such an agency, and which has concluded a bona fide contract with a final consumer in the other Party to supply services in the other Party requiring the presence on a temporary basis of its employees in that other Party in order to fulfil the contract to supply services (1);
(d) "independent professionals" means natural persons engaged in the supply of a service and established as self-employed in the territory of a Party, but not in the territory of the other Party, who have concluded a bona fide contract, other than through an agency for placement and supply services of personnel, with a final consumer to supply services in the other Party requiring their presence on a temporary basis in that other Party (2);
(e) "installers and maintainers" means short-term business visitors possessing specialised knowledge essential to a seller's or lessor's contractual obligation, performing services or training workers to perform services, pursuant to a warranty or other service contract incidental to the sale or lease of commercial or industrial equipment or machinery, including computer and related services, purchased or leased from an enterprise located outside the territory of the Party into which entry and temporary stay is sought, throughout the duration of the warranty or service contract;
(f) "intra-corporate transferees" means natural persons who have been employed by, or partners in, a juridical person of a Party for at least one year, who are temporarily transferred to an enterprise of that juridical person in the territory of the other Party, and who belong to one of the following categories:
(i) managers;
(ii) specialists;
(iii) trainee employees;
(g) "investor" means a natural person who establishes in the territory of the other Party an enterprise to which that natural person or the juridical person employing that natural person has committed, or is in the process of committing, a substantial amount of capital, and who develops or administers the operation of that enterprise in a capacity that is supervisory or executive;
(h) "managers" means natural persons working in a senior position within a juridical person of a Party who primarily direct the management of the enterprise in the territory of the other Party (1), receiving general supervision or direction principally from higher level executives, the board of directors or from stockholders of the business or their equivalent and whose responsibilities include:
(i) directing the enterprise or a department or subdivision thereof;
(ii) supervising and controlling the work of other supervisory, professional or managerial employees; and
(iii) having the personal authority to recruit and dismiss or to recommend recruitment, dismissal or other personnel-related actions;
(i) "short-term business visitors" means natural persons who are seeking entry and temporary stay in the territory of the other Party who do not engage in making direct sales to the general public, do not receive remuneration from a source located within the other Party, and belong to one of the following categories:
(i) business sellers;
(ii) installers and maintainers;
(j) "specialists" means natural persons working within a juridical person of a Party who possess specialised knowledge essential to the areas of activity, techniques or management of the enterprise; in assessing such knowledge, account shall be taken not only of knowledge specific to the enterprise, but also of whether the person has a high level of qualification, including adequate professional experience, regarding a type of work or activity requiring specific technical knowledge, including possible membership of an accredited profession; and
(k) "trainee employees" means natural persons who possess a university degree and are temporarily transferred for career development purposes or to obtain training in business techniques or methods1.
Article 12.3. Intra-corporate Transferees, Business Visitors for Establishment Purposes and Investors
1. Subject to the relevant conditions and qualifications set out in Annex 12-A, each Party:
(a) shall allow the entry and temporary stay of intra-corporate transferees, business visitors for establishment purposes and investors of the other Party;
(b) shall allow the employment in its territory of intra-corporate transferees of the other Party;
(c) shall not maintain or adopt limitations in the form of numerical quotas or the requirement of an economic needs tests on the total number of natural persons who, in a specific sector, are allowed entry as business visitors for establishment purposes or investors, or who may be employed as intra-corporate transferees, either on the basis of a territorial subdivision or on the basis of its entire territory; and
1 The recipient enterprise may be required to submit a training programme covering the duration of the stay for prior approval, demonstrating that the purpose of the stay is for training. For AT, CZ, DE, FR, ES, HU and LT, training must be linked to the university degree which has been obtained.
(d) shall accord to intra-corporate transferees, business visitors for establishment purposes and investors of the other Party, with regard to their temporary stay in its territory, treatment no less favourable than that it accords, in like situations, to its own natural persons.
2. The permissible length of stay shall be:
(a) for Chile, a period of up to two years which may be extended, without a requirement to apply for permanent residence, provided that the conditions on which the stay is based remain in effect; and
(b) for the European Union, a period of up to three years for managers and specialists, up to one year for trainee employees and investors, and up to 90 days within any six-month period for business visitors for establishment purposes.
Article 12.4. Short-term Business Visitors
1. Subject to the scope exclusions set out in Article 10.1(2) and subject to the relevant conditions and qualifications set out in Annex 12-A, a Party shall allow entry and temporary stay of short-term business visitors without the requirement of a work permit, economic needs test or other prior approval procedures of similar intent.
2. If short-term business visitors of a Party are engaged in the supply of a service to a consumer in the territory of the Party where they are staying temporarily, that Party shall accord to them, with regard to the supply of that service, treatment no less favourable than that it accords, in like situations, to its own service suppliers.
3. The permissible length of stay shall be a period of up to 90 days in any 12-month period.