1. Each Party shall allow the entry and temporary stay of contractual services suppliers of the other Party in its territory, in the sectors, subsectors and activities set out in Annex 12-B, subject to the relevant conditions and qualifications specified therein, and provided that:
(a) the natural persons are engaged in the supply of a service as employees of a juridical person which has obtained a service contract not exceeding 12 months;
(b) the natural persons entering the other Party have been engaged as employees of the juridical person referred to in subparagraph (a) for at least one year immediately preceding the date of submission of an application for entry into the other Party and possess, on the date of application for entry, at least three years of professional experience, obtained after having reached the age of majority, in the sector of activity which is the subject of the contract;
(c) the natural persons entering the other Party shall possess:
(i) a university degree or a qualification demonstrating knowledge of an equivalent level (1); and
(ii) professional qualifications, if required to exercise an activity pursuant to the laws and regulations of the Party where the service is supplied;
(d) the natural person does not receive remuneration for the provision of services in the territory of the other Party, other than the remuneration paid by the juridical person employing the natural person; and
(e) access accorded pursuant to this Article relates only to the service activity which is the subject of the contract and does not confer entitlement to use the professional title of the Party where the service is provided.
2. Each Party shall allow the entry and temporary stay of independent professionals of the other Party in its territory in the sectors, subsectors and activities set out in Annex 12-B, subject to the relevant conditions and qualifications specified therein, and provided that:
(a) the contract concluded does not exceed a period of 12 months;
(b) the natural persons possess, on the date of application for entry and temporary stay, at least six years of professional experience in the sector of activity which is the subject of the contract.
(c) the natural persons entering into the territory of the other Party possess:
(i) a university degree or a qualification demonstrating knowledge of an equivalent level (1); and
(ii) professional qualifications, if such are required to exercise an activity pursuant to the laws and regulations of the Party where the service is supplied;
(d) access accorded pursuant to this Article relates only to the service activity which is the subject of the contract; it does not confer entitlement to use the professional title of the Party where the service is provided.
3. A Party shall not adopt or maintain limitations on the total number of contractual services suppliers or independent professionals of the other Party who are allowed entry and temporary stay in the form of numerical quotas or the requirement of an economic needs test.
4. A Party shall accord to contractual services suppliers and independent professionals of the other Party, with regard to the supply of their services in its territory, treatment no less favourable than that it accords, in like situations, to its own service suppliers.
5. The permissible length of stay shall be:
(a) for the European Union, a cumulative period of not more than six months in any 12-month period or for the duration of the contract, whichever is less; and
(b) for Chile, a period up to one year which may be extended for subsequent periods, provided that the conditions on which the stay is based remain in effect.
Article 12.6. Non-conforming Measures
To the extent that the relevant measure affects the entry or temporary stay of natural persons for business purposes, subparagraphs (c) and (d) of Article 12.3(1) and Article 12.5(3) and (4) do not apply to:
(a) any existing non-conforming measure of a Party at the level of:
(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 government of a Member State, as set out in Appendix 10-A-1; or
(D) a local government, other than that referred to in subparagraph (C); and
(ii) for Chile:
(A) the central government, as set out in Appendix 10-A-2;
(B) a regional government, as set out in Appendix 10-A-2; or
(C) a local government;
(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a) of this paragraph;
(c) a modification of any non-conforming measure referred to in subparagraphs (a) and (b) of this Article to the extent that it does not decrease the conformity of the measure, as it existed immediately before the modification, with subparagraphs (c) and (d) of Article 12.3(1) and Article 12.5(3) and (4); or
(d) any measure of a Party consistent with a condition or qualification specified in Annex 10-B.
Article 12.7. Transparency
1. A Party shall make publicly available information relating to the entry and temporary stay of natural persons of the other Party referred to in Article 12.1(1).
2. The information referred to in paragraph 1 of this Article shall include, if applicable, the following information:
(a) categories of visa, permits or any similar type of authorisation regarding the entry and temporary stay;
(b) documentation required and conditions to be met;
(c) method of filing an application and options on where to file it, such as consular offices or online;
(d) application fees and an indicative timeframe of the processing of an application;
(e) the maximum length of stay under each type of authorisation referred to in subparagraph (a) of this paragraph;
(f) conditions for any available extension or renewal;
(g) rules regarding accompanying dependents;
(h) available review or appeal procedures; and
(i) relevant laws of general application pertaining to the entry and temporary stay of natural persons.
3. With respect to the information referred to in paragraphs 1 and 2 of this Article, a Party shall endeavour to promptly inform the other Party of the introduction of any new requirements or procedures, or of any changes in requirements or procedures, which affect the effective application for the grant of entry into, temporary stay in and, if applicable, permission to work in the former Party.
Article 12.8. Non-application of Dispute Settlement
Chapter 31 does not apply to a refusal to grant entry and temporary stay unless the matter involves a pattern of practice.
Chapter 13. DOMESTIC REGULATION
Article 13.1. Scope and Definitions
1. This Chapter applies to measures by the Parties relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards (1) that affect:
(a) cross-border supply of services;
(b) the supply of a service or pursuit of any other economic activity through the establishment of an enterprise or operation of a covered enterprise; or
(c) the supply of a service through the temporary stay of certain categories of natural persons of a Party in the territory of the other Party, as set out in Article 12.1.
2. This Chapter only applies to sectors for which a Party has undertaken specific commitments under Chapters 10, 11 and 12 and to the extent that those specific commitments apply.
3. Notwithstanding paragraph 2, this Chapter does not apply to licensing requirements and procedures, qualification requirements and procedures, and technical standards relating to:
(a) manufacturing of basic chemicals and other chemical products;
(b) manufacturing of rubber products;
(c) manufacturing of plastics products;
(d) manufacturing of electric motors, generators and transformers;
(e) manufacturing of accumulators, primary cells and primary batteries; and
(f) recycling of metal and non-metal waste and scrap.
4. Notwithstanding paragraph 1, this Chapter does not apply to measures of a Party to the extent that they constitute limitations subject to scheduling pursuant to Articles 10.5, 10.6, Article 10.11(1), 10.11(2), Articles 11.4, 11.6, 11.7, Articles 11.8(1), 11.8(2), 12.3(1), 12.4(2), 12.5(1) and Article 12.6.
5. For the purposes of this Chapter:
(a) "authorisation" means a permission to carry out any of the activities referred to in subparagraphs (a), (b) and (c) of paragraph 1 resulting from a procedure to which an applicant must adhere in order to demonstrate compliance with licensing requirements, qualification requirements or technical standards;
(b) "competent authority" means a central, regional or local government or authority, or a non- governmental body in the exercise of powers delegated by central, regional or local governments or authorities, which is empowered to take a decision concerning the authorisation to supply a service, including through establishment of an enterprise, or concerning the authorisation to pursue any other economic activity;
(c) "licensing procedures" means administrative or procedural rules to which a natural or a juridical person seeking an authorisation, including an amendment or renewal of an authorisation, must adhere in order to demonstrate compliance with licensing requirements;
(d) "licensing requirements" means substantive requirements, other than qualification requirements, with which a natural or a juridical person is required to comply in order to obtain, amend or renew an authorisation;
(e) "qualification procedures" means administrative or procedural rules to which a natural person must adhere in order to demonstrate compliance with qualification requirements, for the purposes of obtaining an authorisation; and
(f) "qualification requirements" means substantive requirements relating to the competence of a natural person to supply a service, and with which a natural person is required to comply in order to obtain, amend or renew an authorisation.
6. For the purposes of this Chapter, the definitions set out in Articles 10.2 and 11.2 also apply.
Article 13.2. Conditions for Licensing and Qualification
1. Each Party shall ensure that measures relating to licensing requirements, licensing procedures, and qualification requirements and qualification procedures are based on criteria which preclude the competent authorities from exercising their power of assessment in an arbitrary manner (1).
2. The criteria referred to in paragraph 1 shall be:
(a) clear;
(b) objective and transparent; and
(c) accessible to the public and interested persons in advance.
3. When adopting technical standards, each Party shall encourage its competent authorities to adopt technical standards developed through open and transparent processes, and shall encourage bodies, including relevant international organisations (2), designated to develop technical standards to use open and transparent processes.
4. An authorisation shall, subject to availability, be granted as soon as it is established, in the light of an appropriate examination, that the conditions for obtaining an authorisation have been met.
5. Where the number of licences available for a given activity is limited because of the scarcity of available natural resources or technical capacity, each Party shall apply a selection procedure to potential candidates which provides full guarantees of impartiality and transparency, including, in particular, adequate publicity about the launch, conduct and completion of the procedure.
6. Subject to paragraph 5, in establishing the rules for the selection procedure, each Party may take into account legitimate policy objectives, including considerations of health, safety, protection of the environment and preservation of cultural heritage.
Article 13.3. Licensing and Qualification Procedures
1. Licensing and qualification procedures and formalities shall be clear, made public in advance, and shall not in themselves constitute a restriction on the supply of a service or the pursuit of any other economic activity. Each Party shall endeavour to make such procedures and formalities as simple as possible and shall not unduly complicate or delay the supply of the service or the pursuit of any other economic activity.
2. If authorisation is required, each Party shall promptly publish or otherwise make publicly available the information necessary for the applicant to comply with the requirements and procedures for obtaining, maintaining, amending and renewing such authorisation. Such information shall include at least the following, to the extent that it exists:
(a) the requirements and procedures;
(b) contact information of relevant competent authorities;
(c) fees;
(d) technical standards;
(e) procedures for appeal or review of decisions concerning applications;
(f) procedures for monitoring or enforcing compliance with the terms and conditions of licences and qualifications;
(g) opportunities for public involvement, such as through hearings or comments; and
(h) indicative timeframes for processing an application.
3. Any authorisation fee (1) which the applicants may incur shall be reasonable, transparent, and not in itself restrict the supply of the relevant service or the pursuit of the relevant economic activity.
4. Each Party shall ensure that the procedures used by, and the decisions of, the competent authority in the authorisation process are impartial with respect to all applicants. The competent authority shall reach its decision in an independent manner and not be accountable to any person supplying the services or carrying out the economic activities for which the authorisation is required.
5. If specific time limits for applications apply, an applicant shall be allowed a reasonable period for the submission of an application. If possible, the competent authority should accept applications in electronic format under the same conditions of authenticity as paper submissions.
6. The competent authority shall start processing an application without undue delay after submission. Each Party shall endeavour to establish the indicative timeframe for the processing of an application and shall, at the request of the applicant and without undue delay, ensure that the competent authority provides information concerning the status of the application. Each Party shall ensure that the processing of an application, including reaching a final decision, is completed within a reasonable period of time after the date of submission of a complete application.
7. The competent authority shall, within a reasonable period of time after the receipt of an application which it considers incomplete, inform the applicant, identify, to the extent feasible, the additional information required to complete the application, and provide the applicant with the opportunity to correct inadequacies in the application.
8. The competent authority shall accept copies of documents that are authenticated in accordance with the Party's law, instead of original documents, unless the competent authority requires original documents to protect the integrity of the authorisation process.
9. If an application is rejected by the competent authority, the applicant shall be informed, either on its own request or on the competent authority's initiative, in writing and without undue delay. In principle, the applicant shall be informed of the reasons for the decision to reject the application and of the timeframe for submitting an appeal against that decision. An applicant shall be permitted, within a reasonable time period, to resubmit an application.
10. Each Party shall ensure that an authorisation, once granted, enters into effect without undue delay and in accordance with the terms and conditions specified therein.
11. Where examinations are required for an authorisation, the competent authority shall ensure that such examinations occur at reasonably frequent intervals, and provide a reasonable period of time to enable applicants to request to take the examination.
Article 13.4. Review
If the results of the negotiations related to paragraph 4 of Article VI of GATS enter into force, the Parties shall jointly review such results. Where the joint review assesses that the incorporation of such results into this Agreement would improve the disciplines contained herein, the Parties shall jointly determine whether to incorporate such results into this Agreement.
Article 13.5. Administration of Measures of General Application
Each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.
Article 13.6. Appeal of Administrative Decisions
Each Party shall maintain or institute judicial, arbitral or administrative tribunals, or procedures which provide, on request of an affected investor or service supplier, a prompt review of, and where justified, appropriate remedies for administrative decisions affecting establishment, cross-border supply of services or temporary presence of natural persons for business purposes. If such procedures are not independent of the agency entrusted with the administrative decision concerned, each Party shall ensure that the procedures provide for an objective and impartial review.
Chapter 14. MUTUAL RECOGNITION OF PROFESSIONAL QUALIFICATIONS
Article 14.1. Mutual Recognition of Professional Qualifications
1. Nothing in this Chapter shall prevent a Party from requiring that natural persons possess the necessary qualifications and professional experience required in the territory where the activity is performed, for the sector of activity concerned.
2. Each Party shall encourage professional bodies or authorities relevant to the sector of activity concerned, in its territory, to develop and provide joint recommendations on mutual recognition of professional qualifications to the Sub-Committee on Services and Investment referred to in Article 11.10. Such joint recommendations shall be supported by an evidence-based assessment of:
(a) the economic value of an envisaged arrangement on mutual recognition of professional qualifications ("mutual recognition arrangement"); and
(b) the compatibility of the respective regimes, that is, the extent to which the requirements applied by each Party for the authorisation, licensing, operation and certification are compatible.
3. Upon receipt of a joint recommendation, the Sub-Committee on Services and Investment shall review its consistency with this Agreement within a reasonable period of time. That Sub-Committee may, following such review, develop and recommend to the Trade Council to adopt, pursuant to subparagraph (a) of Article 33.1(6), a decision on a mutual recognition arrangement in order to determine or amend mutual recognition arrangements set out in Annex 14-B (1).
4. An arrangement as referred to in paragraph 3 of this Article shall provide for the conditions for recognition of professional qualifications acquired in the European Union and professional qualifications acquired in Chile relating to an activity covered by Chapter 10, 11, 12 or 19.
5. The guidelines for arrangements on the recognition of professional qualifications set out in Annex 14-A shall be taken into account in the development of the joint recommendations referred to in paragraph 2 of this Article and by the Trade Council when assessing whether to adopt the arrangement referred to in paragraph 3 of this Article.
Chapter 15. DELIVERY SERVICES
Article 15.1. Scope and Definitions
1. This Chapter sets out the principles of the regulatory framework for all delivery services.
2. For the purposes of this Chapter:
(a) "delivery services" means postal and courier or express services, including activities of collection, sorting, transport, and delivery of postal items;
(b) "express delivery services" means the collection, sorting, transport and delivery of postal items at accelerated speed and reliability, and may include value added elements such as collection from point of origin, personal delivery to the addressee, tracing, possibility of changing the destination and addressee in transit or confirmation of receipt;
(c) "express mail services" means international express delivery services supplied through the Express Mail Service Cooperative, which is the voluntary association of designated postal operators under the Universal Postal Union;
(d) "licence" means an authorisation, granted to an individual supplier of delivery services by a competent regulatory authority, setting out procedures, obligations and requirements specific to the delivery services sector;
(e) "postal item" means an item up to 31,5 kg addressed in the final form in which it is to be carried by any type of supplier of delivery services, whether public or private, and may include items such as a letter, parcel, newspaper or catalogue;
(f) "postal monopoly" means the exclusive right to supply specified delivery services in the territory of a Party pursuant to laws of that Party; and
(g) "universal service" means the permanent supply of a delivery service of a specified quality at all points in the territory of a Party at affordable prices for all users.
Article 15.2. Universal Service
1. Each Party has the right to define the kind of universal service obligation it wishes to maintain. Each Party that maintains a universal service obligation shall administer it in a transparent, non-discriminatory and neutral manner with regard to all suppliers of delivery services subject to the obligation.
2. If a Party requires inbound express mail services to be supplied on a universal service basis, it shall not accord preferential treatment to those services over other international express delivery services.
Article 15.3. Prevention of Market Distortive Practices
Each Party shall ensure that a supplier of delivery services that is subject to a universal service obligation or a postal monopoly does not engage in market distortive practices such as:
(a) using revenues derived from the supply of a service subject to a universal service obligation or a postal monopoly to cross-subsidise the supply of an express delivery service or any non- universal delivery service; or
(b) unjustifiably differentiating among customers such as businesses or large-volume mailers or consolidators with respect to tariffs or other terms and conditions for the supply of a service subject to a universal service obligation or a postal monopoly.
Article 15.4. Licences
1. If a Party requires a licence for the provision of delivery services, it shall make publicly available:
(a) all licensing requirements and the period of time normally required to reach a decision concerning an application for a licence; and
(b) the terms and conditions of the licence.
2. The procedures, obligations and requirements of a licence shall be transparent, non-discriminatory and based on objective criteria.
3. If an application for a licence is rejected by the competent regulatory authority, it shall inform the applicant of the reasons for the rejection in writing. Each Party shall establish or maintain an appeal procedure through a body that is independent from the parties involved in the licence application procedure. That body may be a tribunal or court.