(e) opportunities for public involvement, such as through hearings or comments.
6. If a Party requires authorisation for the supply of a financial service, the competent authorities of that Party shall:
(a) to the extent practicable, permit an applicant to submit an application at any time throughout the year (2);
(b) allow a reasonable period of time for the submission of an application if specific time periods for applications exist;
(c) initiate the processing of the application without undue delay;
(d) endeavour to accept applications in electronic format under the same conditions of authenticity as paper submissions; and
(e) accept copies of documents which are authenticated in accordance with the law of the Party in place of original documents, unless they require original documents to protect the integrity of the authorisation process.
7. Each Party shall endeavour to make authorisation procedures and formalities as simple as possible and shall not unduly complicate or delay the provision of the financial service.
8. Each Party shall endeavour to establish the indicative timeframe for processing an application and shall, on request of the applicant and without undue delay, provide information concerning the status of the application.
9. If a competent authority considers an application incomplete for processing under the laws and regulations of the Party, it shall, within a reasonable period of time, and to the extent practicable:
(a) inform the applicant that the application is incomplete;
(b) at the request of the applicant, identify the additional information required to complete the application, or otherwise provide guidance on why the application is considered incomplete; and
(c) provide the applicant with the opportunity (1) to submit the additional information required to complete the application.
10. If none of the actions set out in subparagraph (a), (b) or (c) of paragraph 9 is practicable, the competent authorities shall nevertheless, if the application is rejected due to incompleteness, ensure that they inform the applicant thereof within a reasonable period of time.
11. Each Party shall ensure that its competent authorities, with respect to authorisation fees (2) that they charge, provide applicants with a schedule of fees or information on how fee amounts are determined, and do not use the fees as a means of avoiding the commitments or obligations of the Party.
12. A competent authority shall take its decision in an independent manner and not be accountable to any person supplying the services for which the licence or authorisation is required.
13. Each Party shall ensure that the processing of an application, including reaching a final decision, is completed within a reasonable timeframe after the date of submission of a complete application, and that the applicant is informed of the decision concerning the application, to the extent possible, in writing.
14. If an application is rejected by the competent authority, the applicant shall be informed, either on its own request or upon the initiative of the competent authority, in writing and without undue delay. To the extent practicable, the applicant shall be informed of the reasons for the decision to reject the application and of the timeframe for an appeal against that decision. An applicant should be permitted, within reasonable time limits, to resubmit an application.
15. If examinations are required for an authorisation, the competent authority shall ensure that such examinations are organised at reasonably frequent intervals and provide a reasonable period of time to enable applicants to request taking the examination.
16. Each Party shall ensure that an authorisation, once granted, enters into effect without undue delay in accordance with the terms and conditions specified therein.
Article 18.14. Financial Services New to the Territory of a Party
1. A Party shall permit a financial institution of the other Party, other than a branch, to supply any new financial service that the former Party would permit its own financial institutions to supply in accordance with its law, in like situations, provided that the introduction of the new financial services does not require new laws or regulations or the modification of existing laws or regulations.
2. A Party may determine the institutional and juridical form through which the new financial service may be supplied and may require authorisation for the supply of the service. If such authorisation is required, a decision shall be made within a reasonable period of time and the authorisation shall only be refused for prudential reasons.
3. This Article does not prevent a financial institution of a Party from applying to the other Party requesting it to consider authorising the supply of a financial service that is not supplied within the territory of either Party. Such application is subject to the law of the Party receiving the application and is not subject to the obligations of this Article.
Article 18.15. Self-regulatory Organisations
When a Party requires a financial institution or a cross-border financial service supplier of the other Party to be a member of, participate in, or have access to a self-regulatory organisation in order to provide a financial service in or into the territory of the former Party, it shall ensure that the self-regulatory organisation observes the obligations set out in Articles 10.6, 10.8, 11.4 and 11.5.
Article 18.16. Payment and Clearing Systems
Under terms and conditions that accord national treatment, each Party shall grant to financial institutions of the other Party established in its territory access to payment and clearing systems operated by public entities, and to official funding and refinancing facilities available in the normal course of ordinary business. This Article does not confer access to the lender of last resort facilities of the Party.
Article 18.17. Sub-Committee on Financial Services
1. The Sub-Committee on Financial Services ("Sub-Committee"), established pursuant to Article 33.4(1), shall be composed of representatives of the Parties responsible for financial services.
2. The Sub-Committee shall:
(a) supervise the implementation of this Chapter;
(b) consider issues regarding financial services that are referred to it by a Party; and
(c) carry out a dialogue on the regulation of the financial services sector with a view to improving mutual knowledge of the respective regulatory systems of the Parties and to cooperate in the development of international standards.
Article 18.18. Technical Discussions and Consultations
1. A Party may request technical discussions and consultations with the other Party regarding any matter arising under this Agreement that affects financial services. The other Party shall give sympathetic consideration to that request. The Parties shall report the results of their discussions and consultations to the Sub-Committee.
2. Each Party shall ensure that in those technical discussions and consultations, its delegation includes officials with the relevant expertise in financial services.
3. For greater certainty, nothing in this Article shall be construed as requiring a Party to:
(a) derogate from its relevant laws and regulations regarding the sharing of information among financial regulators or from the requirements of an agreement or arrangement between financial authorities of the Parties; or
(b) require regulatory authorities to take any action that would interfere with specific regulatory, supervisory, administrative, or enforcement matters.
4. Nothing in this Article shall be construed as impeding a Party that requires information for supervisory purposes concerning a financial institution located in the territory of the other Party or a cross-border financial service supplier of the other Party from approaching the competent regulatory authority of the other Party to seek the information.
5. For greater certainty, this Article is without prejudice to either Party's rights and obligations under Chapter 31.
Article 18.19. Dispute Settlement
1. Chapter 31, including Annexes 31-A and 31-B, applies as modified by this Article to the settlement of disputes concerning the application or interpretation of this Chapter.
2. In addition to the requirements set out in Article 31.9, panellists shall have expertise or experience in financial services law or practice, which may include the regulation of financial institutions, unless the Parties agree otherwise.
3. The Sub-Committee shall recommend that the Trade Committee establish a list of at least 15 individuals, fulfilling the requirements referred to in paragraph 2, who are willing and able to serve as panellists. The Trade Committee shall establish such a list no later than one year after the date of entry into force of this Agreement. The list shall be composed of three sub-lists:
(a) one sub-list of individuals established on the basis of proposals by the European Union;
(b) one sub-list of individuals established on the basis of proposals by Chile; and
(c) one sub-list of individuals that are not nationals of either Party and who shall serve as chairperson to the panel.
4. Each sub-list shall include at least five individuals. The Trade Committee shall ensure that the list is always maintained at that minimum number of individuals.
5. For the purposes of this Chapter, the list referred to in paragraph 3 of this Article shall, after its establishment, replace the list established pursuant to Article 31.8(1).
Chapter 19. DIGITAL TRADE
Section A. GENERAL PROVISIONS
Article 19.1. Scope
1. This Chapter applies to trade enabled by electronic means.
2. This Chapter does not apply to audio-visual services.
Article 19.2. Definitions
1. The definitions in Articles 10.2 and 11.2 apply to this Chapter.
2. For the purposes of this Chapter:
(a) "consumer" means any natural person, or juridical person if provided for in the laws and regulations of a Party, using or requesting a public telecommunications service for purposes outside its trade, business or profession;
(b) "direct marketing communication" means any form of commercial advertising by which a natural or juridical person communicates marketing messages directly to end-users via a public telecommunications service and covers at least electronic mail and text and multimedia messages;
(c) "electronic authentication" means a process that enables the confirmation of:
(i) the electronic identification of a natural or juridical person; or
(ii) the origin and integrity of data in electronic form;
(d) "electronic seal" means data in electronic form used by a juridical person which are attached to, or logically associated with, other data in electronic form to ensure the origin and integrity of those other data;
(e) "electronic signature" means data in electronic form which are attached to, or logically associated with, other data in electronic form, and fulfils the following requirements:
(i) it is used by a natural person to agree on the data in electronic form to which it relates; and
(ii) it is linked to the data in electronic form to which it relates in such a way that any subsequent alteration in the data in electronic form is detectable;
(f) "electronic trust services" means an electronic service consisting of the creation, verification, and validation of electronic signatures, electronic seals, electronic time stamps, electronic registered delivery, website authentication and certificates related to that service;
(g) "end-user" means any natural or juridical person using or requesting a public telecommunications service, either as a consumer or, if provided for in the laws and regulations of a Party, for trade, business or professional purposes;
(h) "personal data" means personal data as defined in subparagraph (u) of Article 1.3; and
(i) "public telecommunications service" means public telecommunications service as defined in subparagraph (j) of Article 16.2.
Article 19.3. 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 19.4. Exceptions
Nothing in this Chapter prevents the Parties from adopting or maintaining measures in accordance with Articles 18.11, 32.1 and 32.2 for the public interest reasons set out therein.
Section B. DATA FLOWS AND PERSONAL DATA PROTECTION
Article 19.5. Cross-border Data Flows
The Parties are committed to ensuring cross-border data flows to facilitate digital trade. To that end, a Party shall not restrict cross-border data flows between the Parties by:
(a) requiring the use of computing facilities or network elements in the territory of that Party for processing, including by imposing the use of computing facilities or network elements that are certified or approved in the territory of that Party;
(b) requiring the localisation of data in the territory of that Party for storage or processing;
(c) prohibiting storage or processing in the territory of the other Party; or
(d) making the cross-border transfer of data contingent upon the use of computing facilities or network elements in the territory of that Party or upon localisation requirements in the territory of that Party.
Article 19.6. Protection of Personal Data and Privacy
1. Each Party recognises that the protection of personal data and privacy is a fundamental right and that high standards in that regard contribute to trust in the digital economy and to the development of trade.
2. Each Party may adopt and maintain the measures it deems appropriate to ensure the protection of personal data and privacy, including the adoption and application of rules for the cross-border transfer of personal data. Nothing in this Agreement shall affect the protection of personal data and privacy afforded by the measures of a Party.
Section C. SPECIFIC PROVISIONS
Article 19.7. Customs Duties on Electronic Transmissions
A Party shall not impose customs duties on electronic transmissions between a person of that Party and a person of the other Party.
Article 19.8. No Prior Authorisation
1. A Party shall not require prior authorisation solely on the ground that a service is provided online (1), or adopt or maintain any other requirement having equivalent effect.
2. Paragraph 1 does not apply to telecommunications services, broadcasting services, gambling services, legal representation services, or services of notaries or equivalent professions to the extent that they involve a direct and specific connection with the exercise of public authority.
Article 19.9. Conclusion of Contracts by Electronic Means
1. Each Party shall ensure that its laws and regulations allow contracts to be concluded by electronic means and that the legal requirements for contractual processes do not create obstacles to the use of contracts concluded by electronic means or result in such contracts being deprived of legal effect and validity by reason of their having been concluded by electronic means.
2. Paragraph 1 does not apply to:
(a) broadcasting services, gambling services and legal representation services;
(b) services of notaries or equivalent professions involving a direct and specific connection with the exercise of public authority; and
(c) contracts that establish or transfer rights in real estate, contracts requiring by law the involvement of courts, public authorities or professions exercising public authority, contracts of suretyship granted and collateral securities furnished by persons acting for purposes outside their trade, business or profession, and contracts governed by family law or by the law of succession.
Article 19.10. Electronic Trust Services and Electronic Authentication
1. A Party shall not deny the legal effect or admissibility as evidence in judicial or administrative proceedings of an electronic trust service or an electronic authentication on the basis that it is in electronic form.
2. A Party shall not adopt or maintain measures that would:
(a) prohibit parties to an electronic transaction from mutually determining the appropriate method of electronic authentication for their transaction; or
(b) prevent parties to an electronic transaction from having the opportunity to prove to judicial or administrative authorities that their electronic transaction complies with any legal requirements with respect to electronic trust services or electronic authentication.
3. Notwithstanding paragraph 2, a Party may require that for a particular category of electronic transactions, the method of electronic authentication or electronic trust service:
(a) is certified by an authority accredited in accordance with its law; or
(b) meets certain performance standards which shall be objective, transparent and non- discriminatory and only relate to the specific characteristics of the category of electronic transactions concerned.
Article 19.11. Online Consumer Trust
1. The Parties recognise the importance of enhancing consumer trust in digital trade. Each Party shall adopt or maintain measures to ensure the effective protection of consumers engaging in electronic commerce transactions, including measures that:
(a) prohibit fraudulent and deceptive commercial practices;
(b) require suppliers of goods and services to act in good faith and abide by fair commercial practices, including through the prohibition of charging consumers for unsolicited goods and services;
(c) require suppliers of goods or services to provide consumers with clear and thorough information regarding their identity and contact details (1), as well as regarding the goods or services, the transaction and the applicable consumer rights; and
(d) grant consumers access to redress in order to claim their rights, including a right to remedies where goods or services are paid and not delivered or provided as agreed.
2. The Parties recognise the importance of cooperation between their respective national consumer protection agencies, or other relevant bodies, on activities related to electronic commerce in order to enhance consumer trust.
Article 19.12. Unsolicited Direct Marketing Communications
1. Each Party shall ensure that end-users are effectively protected against unsolicited direct marketing communications.
2. Each Party shall adopt or maintain effective measures regarding unsolicited direct marketing communications that:
(a) require suppliers of unsolicited direct marketing communications to ensure that recipients are able to prevent ongoing reception of those communications; or
(b) require the consent, as specified according to its laws and regulations, of recipients to receive direct marketing communications.
3. Each Party shall ensure that direct marketing communications are clearly identifiable as such, clearly disclose on whose behalf they are made and contain the necessary information to enable end-users to request cessation free of charge and at any moment.
Article 19.13. Prohibition of Mandatory Transfer of or Access to Source Code
1. A Party shall not require the transfer of, or access to, source code of software owned by a natural or juridical person of the other Party. This paragraph does not apply to the voluntary transfer of, or granting of access to, source code on a commercial basis by a person of the other Party, for instance in the context of a public procurement transaction or a freely negotiated contract. Nothing in this paragraph prevents a person of a Party from licensing its software on a free and open-source basis.
2. For greater certainty, Articles 18.11, 32.1 and 32.2 may apply to measures of a Party adopted or maintained in the context of a certification procedure.
3. Nothing in this Article shall affect:
(a) requirements by a court, administrative tribunal or competition authority to remedy a violation of competition law;
(b) protection and enforcement of intellectual property rights; or
(c) the right of a Party to take measures in accordance with Article 21.3.
Article 19.14. Cooperation on Regulatory Issues with Regard to Digital Trade
1. The Parties shall cooperate by exchanging information on their respective law, as well as on the implementation of that law, related to regulatory issues arising from digital trade, including:
(a) the recognition and facilitation of interoperable cross-border electronic trust and electronic authentication;
(b) the treatment of direct marketing communications;
(c) the protection of consumers online; and
(d) any other regulatory issue relevant for the development of digital trade.
2. The Parties shall maintain a dialogue based on the exchange of information referred to in paragraph 1.
3. This Article does not apply to the rules and measures of a Party for the protection of personal data and privacy, including on cross-border transfer of personal data.
Article 19.15. Review
On request of either Party, the Sub-Committee on Services and Investment referred to in Article 11.10 shall review the implementation of this Chapter, in particular in light of relevant changes affecting digital trade that might arise from new business models or technologies. The Sub-Committee on Services and Investment shall report its findings and may make any necessary recommendations to the Trade Committee.
Chapter 20. CAPITAL MOVEMENTS, PAYMENTS AND TRANSFERS AND TEMPORARY SAFEGUARD MEASURES
Article 20.1. Objective and Scope
The objective of this Chapter is to enable the free movement of capital and payments related to transactions liberalised under this Agreement (1).
Article 20.2. Current Account
Without prejudice to other provisions of this Agreement, each Party shall allow, in freely convertible currency and in accordance with the Articles of Agreement of the International Monetary Fund, adopted in Bretton Woods, New Hampshire on 22 July 1944, any payments and transfers with regard to transactions on the current account of the balance of payments that fall within the scope of this Agreement.
Article 20.3. Capital Movements
Without prejudice to other provisions of this Agreement, each Party shall allow, with regard to transactions on the capital and financial account of the balance of payments, the free movement of capital for the purpose of liberalisation of investment and other transactions as provided for in Chapters 10, 11 and 18.