Title

FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF CHINA (TAIWAN) AND THE REPUBLIC OF GUATEMALA

Preamble

The Government of the Republic of China (Taiwan) and the Government of the Republic of Guatemala determined to:
STRENGHTEN the traditional bonds of friendship and the spirit of cooperation between both countries;
RECOGNIZE the strategic and geographic position of each nation within its respective regional market;
REACH a better balance in their trade relations;
CREATE an expanded and secure market for goods and services produced in their territories;
RECOGNIZE the differences in the levels of development and the size of their economies and the need to create opportunities for economic development;
AVOID distortions in their reciprocal trade;
ESTABLISH clear rules of mutual benefit governing trade of their goods and services, and for the promotion and protection of the investments in their territories;
RESPECT the rights and obligations derived from the Marrakech Agreement Establishing the World Trade Organization (WTO), as well as other bilateral and multilateral cooperation instruments;
STRENGHTEN the competitiveness of their enterprises in global markets;
CREATE employment opportunities and improve standards of living in their territories;
PROMOTE economic development in accordance with the protection and conservation of the environment, as well as sustainable development;
PRESERVE their capacity to safeguard the public well-being; and
PROMOTE the dynamic participation of different economic agents, in particular the private sector, in deepening the trade relations between both nations;
HAVE AGREED as follows: 

Body

Part ONE. GENERAL ASPECTS

Chapter 1. Initial Provisions

Article 1.01. Establishment of a Free Trade Area

The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994 and Article V of the General Agreement on Trade in Services, hereby establish a free trade area.

Article 1.02. Objectives

The objectives of this Agreement are to:
a) promote the expansion and diversification of trade of goods and services between the Parties;
b) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties;
c) promote fair competition between the Parties;
d) promote, protect and substantially increase investments in each Party;
e) create effective procedures for the implementation and application of this Agreement, and for its joint administration and dispute settlement; and
f) establish a framework for further bilateral cooperation based on mutually agreed terms and conditions in order to expand and enhance the benefits of this Agreement.

Article 1.03. Relation to other International 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 case of any inconsistency between the provisions of this Agreement and the provisions of the agreements mentioned in paragraph 1, the provisions of this Agreement shall prevail, unless otherwise agreed.
3. In the event of any inconsistency between this Agreement and the specific trade obligations set forth in:
a) the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), done at Washington, March 3, 1973, as amended June 22, 1979;
b) the Montreal Protocol on Substances that Deplete the Ozone Layer done at Montreal, September 16, 1987, as amended June 29, 1990; or
c) the Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and Their Disposal, done at Basel, March 22, 1989, these obligations shall prevail to the extent of the inconsistency, provided that where a Party has a choice among equally effective and reasonably available means of complying with such obligations, the Party chooses the alternative that is the least inconsistent with the other provisions of this Agreement.

Article 1.04. Extent of Obligations

Each Party shall ensure, in conformity with its Constitutional rules, the adoption of all necessary measures to comply with provisions of this Agreement in its territory and at all levels of government.

Article 1.05. Succession of Agreements

Any reference in this Agreement to any other treaty or international agreement shall be made in the same terms to its successor treaty or international agreement to which the Parties are party.

Chapter 2. General Definitions

Article 2.01. General Application Definitions

For the purposes of this Agreement, unless otherwise agreed: chapter means the first two digits of the Harmonized System;
Commission means the Administrative Commission of the Agreement established in accordance with Article 17.01 (Administrative Commission of the Agreement);
customs tariff means any tax, tariff or duty on imports or any charge of any type collected in relation to the import of goods, including any type of surtax or surcharge on imports, except:
a) any charge equivalent to an established internal tax in accordance with Article III.2 of the GATT Agreement of 1994;
b) any right or other charge related to the import, proportional to the cost of rendered services;
c) any offered or collected prime on concerned goods derived from all auction system with respect to the administration of quantitative restrictions of the import or tariff-quota, or tariff preference quotas; and
d) antidumping or countervailing duty that is applied pursuant to a Party's domestic law and applied consistently with Chapter 7 (Unfair Trade Practices);
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, including its interpretative notes, which forms part of the WTO Agreement;
days means calendar days, including Saturdays, Sundays and holidays;
enterprise means any legal entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association;
existing means in effect on the date of entry into force of this Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, which forms a part of the WTO Agreement;
goods means any material, substance, product or part;
goods of a Party means a national product as understood in GATT 1994, or good that the Parties have agreed to attribute such character, including an originating good of that Party.
A good of a Party may contain materials from other countries;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, and Chapter Notes, chapters, headings, subheadings, as adopted and implemented by the Parties in their respective tariff laws;
heading means the first four digits of the Harmonized System;
measure means any law, regulation, procedure, requirement, provision or practice, among others;
national means a natural person of a Party according to Annex 2.01;
originating goods means goods that qualify as originating according to the rules established in Chapter 4 (Rules of Origin);
Party means the Republic of Guatemala or the Republic of China (Taiwan);
person means a natural person, or an enterprise;
person of a Party means a national or an enterprise of a Party;
producer means a person who manufactures, produces, processes or assembles a good, or who cultivates, grows, develops, raises, exploits a mine, extracts, harvests, fishes, hunts, collects, gathers, or captures a good;
Secretariat means "Secretariat" as established in accordance with Article 17.03 (Secretariat);
state enterprise means, an enterprise that is owned or controlled by a Party through ownership interests;
subheading means the first six digits of the Harmonized System;
tariff reduction schedule means "tariff reduction schedule", as established in Annex 3.04 (Tariff Reduction Schedule);
territory means, the land, maritime and air space of each Party, including the exclusive economic zone and the continental shelf within which each exercises sovereign rights and jurisdiction in accordance with international and domestic law;
TRIPS means the Agreement on Trade-Related Aspects of Intellectual Property Rights, which is part of the WTO Agreement;
Uniform Regulations means "Uniform Regulations", as established in Article 5.11 (Uniform Regulations); and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, of April 15, 1994.

Part TWO. Trade In Goods

Chapter 3 . National Treatment and Market Access for Goods

Article 3.01. Definitions

For purposes of this Chapter, unless otherwise agreed in this Agreement, the following terms shall be understood as:
commercial samples of negligible value:
a) raw materials and goods of which dimensions, quantities, weight, volume or presentation are such that indicate without a doubt that they are not for any other use than demonstrations or proof;
b) objects of common materials fixed over cards, supports or clearly presented as samples, according to trade uses;
c) raw materials and goods, as well as the surplus of those raw materials and goods that have been disabled for other use rather than demonstration, by laceration, perforation, marked permanently, or any other way that effectively prevent their commercialization; and
d) goods that cannot be subject to the conditions established in subparagraphs a) through c), consisting in:
i) non consumer good, with no more than ten (10) US dollars unit value, composed by unique specimens in each series or quality; and
ii) consumer goods with no more than ten (10) US dollars unit value, including those composed totally or partially of specimens of the same type or quality, as long as the quantity and form presentation exclude all possibility of commercialization. printed advertising materials: products classified in chapter 49 of the harmonized system, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, and tourist promotional materials and posters that are used to promote, publicize, or advertise an originating good or service, and are supplied free of charges. agricultural products or agricultural goods: the products listed in Annex I of the WTO Agreement on Agriculture, and including any future amendments agreed at the WTO.

Article 3.02. Scope of Application

Except as otherwise provided in this Agreement, this Chapter applies to the trade in goods between the Parties.

Section II. National Treatment

Article 3.03. National Treatment

1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretative notes, and for that matter, the Article III of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement.
2. The provisions on paragraph 1 regarding the national treatment shall mean, with respect to a Party, including its departments, counties, or provinces, a treatment not less favourable than the most favourable treatment that this Party accords to any like, directly competitive, or substitutable goods of its national origin.

Section III. Tariffs

Article 3.04. Tariff Reduction Schedule

1. Unless otherwise agreed in this Agreement, no Party may increase any existing tariff rate nor adopt any new customs tariff on originating goods.
2. The Parties agree to establish the tariff reduction schedule in Annex 3.04 (Tariff Reduction Schedule) for the originating goods.
3. Paragraph 1 does not intend to impede a Party to create a new subheading duty, if the customs tariff applied for is not higher than the tariff applied to the fraction.
4. Upon request by either Party, the Parties shall hold consultations to examine the possibility to improve the tariff treatment of each Party established in Annex 3.04 (Tariff Reduction Schedule). An agreement between the Parties of improving the tariff treatment of a good, shall prevail over any customs tariff or preference established in their schedules for that specific good, once approved by each Party in accordance with its applicable legal procedures.
5. Paragraph 1 of this Article does not prevent a Party from increasing a customs tariff to a level no higher than that established in Annex 3.04 (Tariff Reduction Schedule) if previously this customs tariff had been unilaterally reduced to a level lower than that established in Annex 3.04 (Tariff Reduction Schedule).
6. During the tariff reduction process, the Parties commit themselves to apply in their reciprocal trade of originating goods, the lowest customs tariff, obtained by comparing the level established in accordance with its respective Tariff Reduction Schedule and the level in force according to Article I of GATT 1994 (MFN).

Article 3.05. Temporary Admission of Goods

1. Each Party shall grant duty-free temporary admission for the following goods, regardless of their origin: a) professional equipment, including equipment for the press and television, and broadcasting and cinematographic equipment, necessary for carrying out the business trade, or professional activities; b) goods intended for display or demonstration; c) commercial samples and advertising films and recordings; and d) goods imported for sports purposes.
2. Each Party, shall, at the request of an interested person, and for reasons deemed valid by its customs authority, extend the time limit for temporary admission beyond the period initially fixed, pursuant to its domestic law.
3. No Party shall condition the duty-free temporary admission of goods referred to in paragraph 1, other than to require that such goods:
a) not be sold or leased in its territory;
b) be accompanied by a bond in an amount no greater than the duties and charges that would otherwise be owed on entry or final importation, reimbursable or releasable on exportation of the good;
c) be identifiable when exported;
d) be exported within the period established in the domestic law in force of each Party;
e) be admitted in quantities no greater than is reasonable for their intended use; and
f) be otherwise admissible into the territory of the Party under its domestic laws. 
4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the goods plus penalties provided for under its domestic law.
5. Each Party, through its customs authority, shall adopt procedures providing for the expeditious release of goods admitted under this Article.
6. Each Party shall permit goods temporarily admitted under this Article to be exported through a customs port other than that through which they were admitted.
7. Each Party, through its customs authority, according to its domestic law, shall relieve the importer or other person responsible for the goods admitted under this Article from any liability for failing to export the goods, provided that satisfactory proof has been presented to customs authorities showing that the goods have been destroyed within the given period.
8. Subject to Chapter 10 (Investment) and 11 (Cross-Border Trade in Services):
a) each Party shall allow a container used in international transportation that enters its territory from the territory of the other Party to exit its territory on any route that is reasonably related to the cost effective and prompt departure of such container;
b) neither Party shall require any bond or impose any penalty or charge solely by reason of any difference between the port of entry and the port of departure of a container;
c) neither Party shall condition the release of any obligation, including any bond, that it imposes in respect of the entry of a container into its territory on its exit through any particular port of departure; and
d) neither Party shall require that a carrier bringing a container from the territory of the other Party into its territory be the same carrier that takes such container to the territory of the other Party.

Article 3.06. Duty-free Entries of Commercial Samples of Negligible Value and Printed Advertising Materials

Each Party shall grant duty-free entrance to commercial samples of negligible value and to printed advertising materials imported from the territory of the other Party.

Article 3.07. Customs Valuation

Upon the entry into force of this Agreement, the principles of customs valuation applied to trade between the Parties shall be that established in the Customs Valuation Agreement, including its annexes. Besides, the Parties shall not determine the customs value of the goods based on the officially established minimum value.

Article 3.08. Domestic Support

1. The Parties recognize that domestic support measures may be important to their agricultural sectors, but they may also distort trade and affect production. In this sense, the Parties shall apply domestic support in accordance with the Agreement on Agriculture of the WTO, or its successors, and when a Party decides to support its agriculture producers it shall ensure, in accordance with the relevant legal instruments, that the benefits arising from those programs do not distort domestic trade of the other Party, nor diminish the opportunity of the goods of the other Party to access the market of the Party.
2. In order to ensure transparency, the Parties agree that the Committee on Trade in Goods established pursuant to Article 3.15 shall carry out ongoing and permanent analysis of the status of all domestic support measures, seeking to evaluate the accomplishment of the provisions under paragraph 1. Also, the Parties shall exchange information in a timely manner or, at the request of a Party may engage in consultations over this issue at any time.

Article 3.09. Import and Export Restrictions

1. The Parties agree to immediately eliminate non-tariff barriers, with the exception of rights of the Parties under Articles XX and XXI of GATT 1994, and those regulated in Chapter 8 (Sanitary and Phytosanitary Measures) and Chapter 9 (Standard, Metrology-related Measures and Authorization Procedures).
2. Except as otherwise provided in this Agreement, neither Party may adopt or maintain any prohibition or restriction on the importation of any goods of the other Party or on the exportation or sale for export of any goods destined to the territory of the other Party, except in accordance with Article XI of GATT 1994, including its interpretative notes. To this end, Article XI of GATT 1994 and its interpretative notes, are incorporated into and form part of this Agreement.
3. The Parties reaffirm their rights and obligations under GATT 1994, that prohibit, under any circumstances any form of restrictions, export price requirements and, except as permitted in the enforcement of countervailing and antidumping orders, import price requirements, including minimum prices and reference prices.
4. In the event that a Party adopts or maintains a prohibition or restriction on the importation or exportation of originating goods from the other Party, if required, the former Party shall establish that the measure is in accordance with this Agreement and the WTO Agreements.
5. The Parties hereby establish Annex 3.09 (Import and Export Restrictions). Paragraphs 1 to 3 shall not apply to the measures set forth in said Annex.
6. If a Party has state trading enterprises, said Party shall guarantee that their activities be carried out based solely on considerations of a commercial nature, such as prices, quality, availability, marketability, transportation and other conditions of purchase or sale. The Party shall accord to the trade of the other Party fair and equitable treatment, to avoid these activities becoming barriers to trade, in accordance with Article XVII of GATT 1994 including its interpretative notes, and to this end, this Article and its interpretative notes, are incorporated into and form part of this Agreement.

Article 3.10. Consular Fees

Upon the entry into force of this Agreement, neither Party shall require consular fees or charges, nor shall require consular formalities on originating goods from the other Party.

Article 3.11. Country of Origin Marking

1. The Parties confirm their rights and obligations under Article IX of GATT 1994 and any successor agreement.
2. Each Party shall ensure that the establishment and implementation of their laws on country of origin marking does not have the purpose or effect of creating unnecessary barriers to trade between the Parties.

Article 3.12. Export Taxes

Except as provided in Annex 3.09 (Import and Export Restriction), at the time of entry into force of this Agreement, neither Party shall adopt nor maintain any tax, duty or charge on the export of a good to the territory of the other Party.

Article 3.13. Special Safeguard Measures

1. The Parties may apply a special safeguard measures (SSM) at any given time in a calendar year, for those products included in Annex 3.13 (Products subject to Special Safeguard Measures), whenever the imports of a product from the other Party have exceeded the trigger levels established in Annex 3.13. The trigger levels shall be a percentage of the yearly average growth of those imports made during the last 3 calendar years; as long as there have been imports consecutively in those years.
2. The SSM application shall consist of a tariff increase to the level of the MFN customs tariff established either at the time of importation or on July 31 2005, whichever is lower.
3. The SSM application is not subject to any kind of compensation.
4. The SSM duration period shall be of up to eighteen (18) months, renewable for an equal period of time. The Party shall notify the other Party of its intention to extend said measure at least thirty (30) days before the due date, if the conditions that caused it persist.
5. The adopted SSM shall take effect on the day that said measure is published in the media designated by each Party's legislation, taking into account all relevant information that justifies its entry into force. The Party imposing the measures shall notify it to the other Party at least fifteen (15) days before its entry into force.
6. Notwithstanding the application of the SSM, the Parties shall be able to hold consultations at any time in order to exchange information and with the goal of reaching mutually beneficial agreements.
7. Whenever new products are incorporated into the Tariff Reduction Schedule included in Annex 3.04 (Tariff Reduction Schedule) the Parties shall be able to include them in Annex 3.13 (Products subject to Special Safeguard Measures).
8. The SSM shall not apply to those products listed under the exclusion category or subject to a tariff quota system.

Article 3.14. Distinctive Products

1. For purposes of labeling, the Government of Taiwan recognizes coffee as a distinctive product of Guatemala, especially the coffee from the regions of Antigua, Huehuetenango, Cobán, San Marcos, Oriente, Atitlán and Fraijanes. Therefore, the Government of Taiwan shall not permit the commercialization and sale of any product as Guatemalan Coffee, particularly from Antigua, Huehuetenango, Cobán, San Marcos, Oriente, Atitlán and Fraijanes, unless these products have been manufactured with originating coffee from Guatemala or the regions mentioned above, if applied.
2. The Parties may recognize other regions, as well as other distinctive products after the entry into force of this Agreement. For these purposes the Parties shall conduct consultations in the Committee on Trade in Goods.

Article 3.15. Committee on Trade In Goods

1. The Parties hereby establish the Committee on Trade in Goods, which shall be composed as set out in Annex 3.15 (Committee on Trade in Goods).
2. The Committee on Trade in Goods shall meet periodically, and by request of a Party or the Commission, to ensure the effective implementation and administration of Chapter 3 (National Treatment and Market Access for Goods).
3. Without prejudice to the provisions of Article 17.05(2) (Committees), the Committee shall have the following functions: a) supervise the implementation and administration of this Chapter by the Parties; b) at the request of either Party, review any proposed modification or addition; c) make recommendation on modifications or additions to the Commission; d) consider any other matter related to the implementation and administration of this Chapter; and e) analyze, the status of all domestic support measures of the Parties, in an ongoing and permanent manner, as well as any other modifications of this measures, seeking to assess compliance with paragraph 1 of Article 3.08.

Chapter 4. Rules of Origin

Article 4.01. Definitions

For purposes of this Chapter, the following terms shall be understood as:
CIF: the value of an imported good that includes the costs of insurance and freight to the port or place of entry in the importing Party;
FOB: free on board;
regardless of the mode of transportation, at the point of direct shipment by the seller to the buyer;
fungible goods or materials: goods or materials which are interchangeable for commercial purposes and whose properties are essentially identical and it is not possible to differentiate one from another by a simple eye examination;
generally accepted accounting principles: recognized consensus or substantial authorized support given in the territory of one of the Parties with respect to the recording of revenues, expenses, costs, assets and liabilities, the disclosure of information and the preparation of financial statements. Generally accepted accounting principles may encompass broad guidelines for general application, as well as detailed standards, practices and procedures; goods wholly obtained or produced entirely in the territory of a Party:
a) minerals extracted or obtained in the territory of that Party;
b) vegetables and vegetable products harvested, gathered or recollected in the territory of that Party;
c) live animals born and raised in the territory of that Party;
d) goods obtained by hunting, trapping, fishing, aquaculture, gathering or capture in the territory of that Party;
e) goods obtained from live animals in the territory of that Party;
f) fish, shellfish, and other marine species obtained outside the territorial sea of that Party, by fishing vessels registered or recorded in that Party and flying its flag, or by fishing vessels rented by enterprises established in the territory of that Party;
g) goods obtained or produced on board factory vessels from the goods referred to in subparagraph f) provided that such vessels are registered or recorded in that Party and fly its flag, or are rented by enterprises established in the territory of that Party;
h) goods obtained from the seabed or subsoil beneath the sea bed outside the territorial sea of that Party, by that Party or a person of that Party, provided that the Party has rights to exploit such seabed or subsoil;
i) scrap and waste derived from manufacturing or processing operations in the territory of that Party and fit only for disposal or for the recovery of raw materials; or
j) goods produced in the territory of that Party, exclusively from goods mentioned in subparagraph a) through and i) above;
indirect material: a good used in the production, testing or inspection of another good, but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment related to the production of another good, including:
a) fuel, energy, solvents and catalysts;
b) equipment, devices and supplies used in the testing or inspection of goods;
c) gloves, glasses, footwear, clothing, and safety equipment and supplies;
d) tools, dies and molds;
e) spare parts and materials used in the maintenance of equipment and buildings;
f) lubricants, greases, compounding materials, and other materials used in production, or used to operate equipment and maintenance of buildings; and
g) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production;
material: a good used in the production of another good including ingredients, parts, components and goods that have been physically incorporated into another good or were subject to the production process of another good;
producer: a "producer" as defined in Chapter 2 (General Definitions);
production: methods of obtaining goods including manufacturing, producing, growing, assembling, processing, harvesting, raising, breeding, mining, extracting, hunting, collecting, gathering, fishing, trapping and capturing;
transaction value of a good: the price actually paid or payable for a good related to the transaction done by the producer of the good, according to the principles of Article 1 of the Customs Valuation Agreement, adjusted according to paragraphs 1, 3 and 4 of Article 8 of the Agreement, regardless whether the good is sold for exportation.
For purposes of this definition, the seller referred to in the Customs Valuation Agreement shall be the producer of the good;
transaction value of a material: the price actually paid or payable for a material related to the transaction done by the producer of the material, in accordance with the principles of Article 1 of the Customs Valuation Agreement, adjusted according to paragraphs 1, 3 and 4 of Article 8 of the said Agreement, regardless whether the material is sold for exportation. For purposes of this definition, the seller referred to in the Customs Valuation Agreement shall be the producer of the material; and
value: the value of a good or material for purposes of calculating customs duties or for purposes of applying this Chapter according to the principles established in the Customs Valuation Agreement.

Article 4.02. Application and Interpretation Instruments

1. For purposes of this Chapter:
a) the tariff classification of goods shall be based on the Harmonized System; and
b) the principles and rules of the Customs Valuation Agreement shall be used to determine the value of a good or a material.
2. For purposes of this Chapter, the Customs Valuation Agreement will be applied to determine the origin of a good as follows:
a) the principles and rules of the Customs Valuation Agreement shall be applied to domestic transactions, with the modifications required by the circumstances, as they would apply to international transactions; and
b) the provisions of this Chapter shall prevail over those of the Customs Valuation Agreement, where there are inconsistencies.

Article 4.03. Originating Goods

1. Except as otherwise provided in this Chapter, a good shall be considered as originating in the territory of a Party, when:
a) it is wholly obtained or produced entirely in the territory of that Party;
b) it is produced entirely in the territory of one or both Parties exclusively from materials that qualify as originating according to this Chapter;
c) it is produced in the territory of one or both Parties from non-originating materials that meet with a change in tariff classification, satisfies a regional value content or other requirements, as specified in Annex 4.03 and the good complies with all other applicable requirements of this Chapter;
d) it is produced in the territory of one or both Parties, even though one or more of the non-originating materials, provided for as parts under the Harmonized System, that are used in the production of the good have not undergone a change in the tariff classification because: i) the good was imported into the territory of one or both Parties in an unassembled or a disassembled form and has been classified as an assembled good according to General Rules of Interpretation 2(a) of the Harmonized System;
ii) the good and its parts are classified into the same heading which describes specifically both the good itself and its parts, and that heading is not further divided into subheadings; or
iii) the subheading for the good is the same as for its parts and describes specifically both the good itself and its parts; provided that the regional value content of the good, determined in accordance with Article 4.07, is not less than thirty five percent (35%), and the good fulfills all other applicable requirements of this Chapter, unless the specific rule of origin applicable to the good pursuant to Annex 4.03, specifies a different requirement of regional value content, in which case that specific requirement shall be applied. The rules provided for in this subparagraph shall not be applicable to the goods in Chapters 61 through 63 of the Harmonized System.
2. If a good of a Party fulfills the specific rules of origin in Annex 4.03, the additional fulfillment of the requirement of regional value content established in paragraph 1 d) shall not be required.
3. For purposes of this Chapter, the production of a good from non-originating materials that fulfill a change of tariff classification and other requirements specified in Annex 4.03, shall be done totally in the territory of one or both Parties, and the good shall satisfy all the applicable requirements of this Chapter.
4. Notwithstanding other provisions of this Article, goods shall not be considered originating, if they are exclusively the outcome of the minimal operations set out in Article 4.04 and carried out in the territory of one or both Parties, unless the specific rules of origin of Annex 4.03 indicate otherwise.

Article 4.04. Minimal Processes or Operations

The minimal processes or operations that by themselves or in combination do not confer origin to a good are as follows:
a) the necessary operations for the preservation of a good during transportation or storage, including airing, ventilation, drying, refrigeration, freezing, elimination of damaged parts, application of oil, antirust painting or protective coatings, or the placing in salt, sulfur dioxide or some other aqueous solution;
b) simple operations consisting of cleaning, washing, sifting or straining, or shaking, selection, classification or grading, culling, peeling, shelling or striping, grain removal, pitting, pressing or crushing, soaking, elimination of dust or of spoiled or damaged parts, sorting, division of consignments in bulk, grouping in packages, placing of marks, labels or distinctive signs on products and their packages, packing, unpacking or repackaging;
c) combination or mixing operations of goods that have not result in any important difference in the characteristics of the goods before and after the combination or mixing;
d) simple jointing or assembling of parts to make a complete good, or to form sets or assortments of goods;
e) simple water dilution operations or ionization and salting, which have not changed the nature of the good; and
f) slaughter of animals.

Article 4.05. Indirect Materials

Indirect materials shall be considered as originating, regardless where they are produced or manufactured, and the value of those materials shall be included in the costs as indicated in the accounting records of the producer of the good.

Article 4.06. Accumulation

1. A Party may only accumulate origin with goods originating from the territory of the other Party.
2. The originating materials or goods from a territory of one Party, incorporated into a good in the territory of the other Party, shall be considered as originating in the territory of the latter.
3. A good is originating when it is produced in the territory of one or both Parties by one or more producers, provided that the good satisfies the requirements established in Article 4.03 and all other applicable requirements of this Chapter.

Article 4.07. Regional Value Content

1. The regional value content of the goods shall be calculated according to the following formula: RVC= [(TV- VMN) / TV] * 100 Where: RVC is the regional value content, expressed as a percentage;
TV is the transaction value of the good adjusted to a FOB basis, unless as stated in paragraph 2. In case this value does not exist, or cannot be determined according to the principles and rules of Article 1 of the Customs Valuation Agreement, it shall be calculated according to the principles and rules of Articles 2 through 7 of the Agreement; and VMN is the transaction value of the non-originating materials adjusted to a CIF basis, unless as stated in paragraph 5. In case that the value does not exist or cannot be determined according to the principles and rules of Article 1 of the Customs Valuation Agreement, it shall be calculated according to the principles and rules of Articles 2 through 7 of the Agreement.
2. When the good is not exported directly by its producer, the value shall be adjusted to the point at which the buyer receives the good in the territory in which the producer is located. 3. When the origin is determined by the method of regional value content, the required percentage shall be specified in Annex 4.03 in the corresponding specific rule of origin.
4. All the records of the costs considered for the calculation of the regional value content shall be recorded and maintained according to the generally accepted accounting principles, applicable in the territory of the Party where the good is produced.
5. When the producer of a good acquires a non-originating material in the territory of a Party in which it is located, the value of the non-originating material shall not include freight, insurance, packing costs and any other cost incurred in the transportation of the material from the supplier's warehouse to the location of the producer.
6. For purposes of calculating the regional value content, the value of the non-originating materials used in the production of the good shall not include the value of the non-originating materials used in the production of an originating material acquired and used in the production of such good.

Article 4.08. De Minimis

1. A good shall be considered originating if the value of all non-originating materials used in the production of this good that does not satisfy the requirement of change in tariff classification set out in Annex 4.03 does not exceed ten percent (10%) of the transaction value of the good, as determined according to Article 4.07.
2. When it refers to goods classified into chapters 50 through 63 of the Harmonized System, the percentage indicated in paragraph 1 shall refer to the weight of fibers or yarns with respect to the weight of the good being produced.
3. Paragraph 1 shall not apply to a non-originating material used in the production of goods classified into Chapters 1 through 27 of the Harmonized System, unless the non-originating material is classified in a different subheading from the good for which the origin is being determined according to this Article.

Article 4.09. Fungible Goods and Materials

1. When in the production of goods using originating or non-originating fungible goods or materials, the origin of those fungible goods or materials shall be determined either by physical segregation of each good or material, at the producer's choice, or through the application of one of the following inventory management methods:
a) first in first out (FIFO) method;
b) last in first out (LIFO) method; or c) averaging method.
2. When originating and non-originating fungible goods or materials are physically mixed or combined in the warehouse and before their exportation do not undergo any production process or any other operation in the territory of the Party in which they were mixed of physically combined, other than unloading, reloading or any other necessary movement to maintain the goods or materials in good condition or transport them to the territory or the other Party, the origin of the good or material shall be determined by one of the inventory management methods listed out in the preceding paragraph.
3. Once the inventory management method listed out in the preceding paragraph is selected by a producer, it shall be used during the entire period of a fiscal year of that producer.

Article 4.10. Sets or Assortments of Goods

1. A set or assortment of goods that is classified according to rule 3 of the General Rules of the Interpretation of the Harmonized System, as well as the goods whose description according to the nomenclature of the Harmonized System is specifically that of a set or assortment, shall qualify as originating, whenever each one of the goods contained in that set or assortment complies with the rules of origin set out in this Chapter and in Annex 4.03. 2. Notwithstanding paragraph 1, a set or assortment of goods shall be considered originating, if the value of all non-originating goods used in making the set or assortment does not exceed the percentage set out in paragraph 1 of Article 4.08 with respect to the value of the set or assortment, adjusted to the basis indicated in Article 4.07 paragraphs 1 or 2, as the case may be.
3. The provisions of this Article shall prevail over the specific rules of origin set out in Annex 4.03.

Article 4.11. Accessories, Spare Parts and Tools

1. The accessories, spare parts or tools delivered with the good that usually form part of the good shall not be taken into account in determining whether all non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex (4.03), provided that:
a) the accessories, spare parts or tools are not invoiced separately from the good; and
b) the amount and the value of these accessories, spare parts or tools are customary for the good.
2. When the good is subject to a requirement of regional value content, the value of the accessories, spare parts or tools will be considered as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
3. For those accessories, spare parts or tools that do not fulfill the conditions mentioned above, the rules of origin shall apply to each of them respectively and separately, according to this Chapter.

Article 4.12. Packaging Materials and Containers for Retail Sale

1. When packaging materials and containers in which a good is packaged for retail sales are classified in the Harmonized System with the good, they shall not be taken into account in determining whether all non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 4.03.
2. When the good is subject to a requirement of regional value content, the value of these packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

Article 4.13. Packing Materials and Containers for Shipment

Containers and packing materials in which the good is packed for shipment shall not be taken into account in determining whether:
a) the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 4.03; or
b) the good satisfies the requirement of regional value content.

Article 4.14. Transit and Transshipment

An originating good shall not lose such status when it is exported from a Party to the other Party and during its transportation it passes by the territories of one or more non-Parties, as long as it fulfills the following requirements:
a) the transit is justifiable by geographical reasons or by considerations relative to requirements of international transportation;
b) the good has not been destined for trade, consumption, and use in the countries of transit;
c) during its transportation and temporary storage the good has not undergone operations other than unloading, reloading or any other operation necessary to preserve them in good condition; and the good remains under the control of the customs authority in the territory of any non-Party.

Chapter 5. Customs Procedures Related to Rules of Origin

Article 5.01. Definitions

1. For purposes of this Chapter, the following terms shall be understood as:
certifying authority: in the case of the Republic of Guatemala, the Ministry of Economy, or its successor; and in the case of the Republic of China (Taiwan), the Bureau of Foreign Trade (BOFT), Ministry of Economic Affairs, or its successor, or other agencies as authorized by BOFT or its successor;
commercial importation: the importation of a good into the territory of a Party for sale, or for commercial, industrial or similar purposes;
competent authority: in the case of the Republic of Guatemala, the Ministry of Economy, or its successor; and
in the case of the Republic of China (Taiwan), the customs authority under the Ministry of Finance, or its successor;
customs authority: the authority, according to the respective laws of each Party, responsible for administering and implementing customs laws and regulations;
days: "days" as defined in Chapter 2 (General Definitions); determination of origin: the written legal document issued by the competent authority as a result of a procedure for verifying whether a good qualifies as originating according to Chapter 4 (Rules of Origin); exporter: a person engaging in exportation and located in the territory of a Party who is obligated, in accordance with this Chapter, to maintain records in the territory of that Party according to paragraph 1 a) of Article 5.05;
identical goods: goods that are equal in all aspects, including physical characteristics, quality and commercial prestige, irrespective of minor differences in appearance that are not relevant to the determination of origin of these goods according to Chapter 4 (Rules of Origin);
importer: a person engaging in importation and located in the territory of a Party, who is obligated, in accordance with this Chapter, to maintain records in the territory of that Party according to paragraph 1 b) of Article 5.05;
preferential tariff treatment: the application of the tariff rate corresponding to an originating good according to the tariff reduction schedule, pursuant to Article 3.04 (Tariff Reduction Schedule);
producer: "producer" as defined in Chapter 2 (General Definitions); located in the territory of a Party who is obligated, in accordance with this Chapter, to maintain records in the territory of that Party according to paragraph 1 a) of Article 5.05; and
valid certificate of origin: a certificate of origin in the format established in paragraph 1 of Article 5.02, completed, signed and dated by the exporter of a good in the territory of a Party, and certified by a certifying authority of that Party, according to the provisions of this Chapter and to the instructions for filling the certificate.
2. The definitions established in Chapter 4 (Rules of Origin) shall be incorporated into this Chapter.

Article 5.02. Origin Certification

1. For the purposes of this Chapter, the Parties shall establish a single form of certificate of origin, which shall enter into force on the same day as this Agreement and may be modified as many time as deemed necessary by mutual consent.
2. The certificate of origin referred to in paragraph 1 shall be used to certify that a good being exported from the territory of a Party into the territory of the other Party qualifies as originating.
3. The certifying authorities of each Party shall require its exporters or producers to complete and sign a certificate of origin for each exportation of goods for which an importer of the other Party may claim preferential tariff treatment.
4. The exporter or producer completing and signing a certificate of origin will do so through an affidavit, committing to assume administrative, civil or criminal liability whenever the exporter includes false or incorrect information in the certificate of origin.
5. The certifying authority of each Party shall certify that the certificate of origin filled out and signed by the exporter or producer of the good is correctly completed, based on the information provided by such exporter or producer, who shall be responsible for the accuracy and validity of the information provided, and shall verify that the exporter or producer is indeed located in that Party.
6. Each Party shall require the certificate of origin to be sealed, signed and dated by the certifying authority of the exporting Party with respect to the exportation of a good for which the importer may claim preferential tariff treatment. The certificate of origin shall also carry a serial number allowing its identification, which will be managed by the certifying authority.
7. The certifying authority of the exporting Party shall: a) maintain the administrative procedures for certifying the certificates of origin that its producer or exporter fills out and signs; b) provide, if requested by the competent authority of the importing Party, information about the origin of the imported goods claiming preferential tariff treatment; and c) notify in writing, before this Agreement enters into force, the list of the names of the authorized persons and, where applicable, the list of bodies authorized to certify the certificate of origin, with the corresponding signatures and seals. Modifications to this list shall be notified immediately in writing to the other Party and shall enter into force thirty (30) days after the date on which that Party receives notification of the modification.
8. Each Party shall provide that a certificate of origin shall only be applicable to a single importation of one or more goods into the territory of that Party.
9. Each Party shall provide that a valid certification of origin be accepted by the customs authority of the importing Party for a period of one year from the date on which the certificate was signed and sealed by the certifying authority.
10. Each Party shall provide that the preferential tariff treatment shall not be denied only because the good covered by a certificate of origin is invoiced by an enterprise located in the territory of a non-Party.
11. The Parties shall, in the second year from the date on which this Agreement enters into force, review the certifying procedures with a view to confirm whether it would be more beneficial to the Parties to let exporters or producers certify certificates of origin by themselves, rather than requiring any agency to perform the certification. If this is agreed by the Parties, the exporter or producer will be the one responsible to certify the origin without the certifying agency of each Party being the one required to perform the certification.

Article 5.03. Obligations Regarding Importations

1. Each Party shall require the importer claiming preferential tariff treatment for a good imported into its territory from the territory of the other Party to:
a) declare in writing in the importation document required by its legislation, based on a valid certificate of origin that a good qualifies as an originating good;
b) have the certification of origin in his possession at the time the declaration is made;
c) provide, if requested by its customs authority, the certificate of origin or its copies; and
d) promptly make a corrected declaration and pay any duties owing where the importer has reasons to believe that the certificate of origin on which a customs declaration was based contains incorrect information. Where the importer presents a corrected declaration before the customs authority notifies the revision, according to the domestic laws of each Party, the importer may not be penalized.
2. Each Party shall provide that, if an importer in its territory fails to comply with any requirement established in this Chapter, it may deny the preferential tariff treatment under this Agreement to a good imported from the territory of the other Party.
3. Each Party shall provide that, when the importer does not ask for a preferential tariff treatment for goods imported into its territory that would have qualified as originating, the importer may, not later than four (4) months from the date of release of the imported goods, request the return of the tariff duties paid in excess for not having requested the preferential tariff treatment for that good, as long as the importer has the certificate of origin in his/her possession and the request is accompanied by:
a) a written declaration, indicating that the good qualifies as originating at the time of importation;
b) the certificate of origin or its copy; and
c) any other documentation related to the import of the good, as the customs authority may require.
4. Compliance with the provisions of previous paragraphs of this Article does not exempt the importer from the obligation to pay the corresponding customs duties according to the applicable laws of the importing Party, when the competent authority of that Party concludes an origin verification and determines to deny the preferential tariff treatment to goods imported, according to Article 5.06.

Article 5.04. Obligations Regarding Exportations

1. Each Party shall require its exporter or producer that has filled out and signed a certificate of origin to submit a copy of such certificate to its competent authority upon request.
2. Each Party shall require its exporter or producer who has completed and signed a certificate of origin or information for his/her certifying authority, and has reasons to believe such certificate contains incorrect information, to notify promptly in writing all persons to whom that certificate was given and its certifying authority, of any change that may affect the accuracy or validity of that certificate, in which case, the exporter or producer may not be penalized for having provided an incorrect certificate or information according to domestic laws of each Party.
3. Each Party shall require that if a false Certificate or information provided by its exporter or producer results in the good being exported to the territory of the other Party qualified as originating, such exporter or producer shall be subject to similar penalties as would apply to an importer in its territory for violating its customs laws and regulations by making false declarations or statements.
4. The certifying authority of the exporting Party shall provide the competent authority of the importing Party the notification referred to in paragraph 2.

Article 5.05. Records

1. Each Party shall provide that:
a) its exporter or producer who requests a certificate of origin and provides information to its certifying authority shall maintain, for at least five (5) years from the date on which the certificate is signed, all records and documents related to the origin of the goods, including those concerning:
i) the purchase, costs, value, and payment of the good exported from its territory;
ii) the purchase, costs, value and payment of all materials, including indirect ones, used in the production of the good exported from its territory; and
iii) the production of the good in the form in which it is exported from its territory;
b) an importer who claims preferential tariff treatment for a good imported into that Party's territory shall maintain a copy of the certificate of origin and other documentation relating to the importation for at least five (5) years from the date of importation of the good; and
c) the certifying authority of the exporting Party that has issued a certificate of origin shall maintain all documentation relating to the issuance of the certificate for a minimum period of five (5) years from the issuing date of the certificate.
2. A Party may deny the preferential tariff treatment to an imported good subject to an origin verification, if the exporter, producer or importer of the good who shall maintain records or documents in accordance with paragraph 1:
a) does not have the records or documents for determining the origin of the good, in accordance with the provisions of this Chapter and of Chapter 4 (Rules of Origin); or
b) denies access to the records or documents.

Article 5.06. Origin Verification Procedures

1. The importing Party, through its competent authority, may request information about the origin of a good from the certifying authority of the exporting Party. The competent authority of the importing Party may also request its Embassy in the territory of the other Party for assistance in those matters.
2. For purposes of determining whether a good imported into its territory from the territory of the other Party under preferential tariff treatment according to this agreement qualifies as originating, a Party may verify the origin of the good through its competent authority by means of:
a) written questionnaires or requests for information sent directly to the importer in its territory or the exporter or producer in the territory of the other Party;
b) verification visits to the exporter or producer in the territory of the other Party to review the records and documents referred to in Article 5.05, and to inspect the materials and facilities used in the production of the good in question;
c) delegating its Embassy in the territory of the other Party to conduct the verification visit mentioned above; or
d) other procedures as the Parties may agree to.
3. For the purposes of this Article, the questionnaires, requests, official letters, determinations of origin, notifications or any other written communications sent by the competent authority to the importer, exporter or the producer for origin verification, shall be considered valid, provided that they are done by the following means:
a) certified mails with receipts of acknowledgement or other ways that confirm that the importer, exporter or producer has received the documents;
b) official communications through the Embassies of the Parties whenever the competent authority requires; or
c) any other way as the Parties may agree to.
4. In a written questionnaire or request for information referred to in paragraph 2 a) it shall: a) indicate the time period, which shall be no less than thirty (30) days from the date of receipt, that the importer, exporter or producer has to duly complete and return the questionnaire or provide the information requested; and
b) include the notification of intention to deny preferential tariff treatment, in case the importer, exporter or producer does not duly complete and return the questionnaire or provide the information requested within such time period.
5. The importer, exporter or producer who receives a questionnaire or request for information according to paragraph 2 a) shall duly complete and return the questionnaire or respond to the request for information within the time period established in paragraph 4 a) from the date of receipt. During that time period, the importer, exporter or producer may make a written request to the competent authority of the importing Party for an extension of no more than thirty (30) days. Such request shall not have the consequence of denial of the preferential tariff treatment.
6. Each Party shall provide that, even if the answered questionnaire or information requested referred to in paragraph 5 has been received within the specified time period, it may still request, through its competent authority, additional information from the importer, exporter or producer, by means of a subsequent questionnaire or request. In such cases the importer, exporter or producer shall answer the questionnaire or respond to the request within thirty (30) days from the date of receipt.
7. If the importer, exporter or producer does not duly complete a questionnaire, or does not return the questionnaire or provide the information requested within the time period established in paragraphs 4 a), 5 and 6 above, the importing Party may deny preferential tariff treatment to the goods subject to verification, by issuing a written determination of origin, including facts and the legal basis for that determination, to the importer, exporter or producer.
8. Prior to conducting a verification visit according to paragraph 2 b), the importing Party shall, through its competent authority, provide a written notification of its intention to conduct the visit. The notification shall be sent to the exporter or producer to be visited, to the certifying authority and the competent authority of the Party in whose territory the visit will be conducted, and, if necessary, to the Embassy of the other Party in the territory of the importing Party. The competent authority of the importing Party shall request written consent from the exporter or producer to be visited.
9. The notification referred to in paragraph 8 shall include:
a) the name of the competent authority that sends the notification;
b) the name of the exporter or producer to be visited;
c) the date and place of the proposed verification visit;
d) the objective and scope of the verification visit, including the specific reference to the goods subject to verification;
e) the names and positions of the officers conducting the verification visit; and
f) the legal basis for carrying out the verification visit.
10. Any modification of the information referred to in the preceding paragraph shall also be notified according to paragraph 8.
11. If the exporter or producer has not given his written consent to a proposed verification visit within the thirty (30) days of the written notification as provided in paragraphs 8 and 9, the importing Party may deny preferential tariff treatment to the good or goods by notifying in writing to the importer, exporter or producer its determination, including facts and the legal basis for such denial.
12. Each Party shall provide that, when an exporter or producer receives a notification as provided in paragraphs 8 and 9, that exporter or producer may, within fifteen (15) days of receipt of the notification, notify in writing the competent authority of the importing Party, certifying authority and competent authority of the exporting Party, its decision to postpone only for once the proposed verification visit for a period no longer than sixty (60) days from the date the notification was received, or for a longer period as the Parties may agree to.
13. The Parties shall not deny the preferential tariff treatment to a good solely because a verification visit is postponed according to paragraph 12.
14. Each Party shall permit an exporter or producer who is subject to a verification visit to designate two observers to be present during the visit, provided that the observers do not participate in a manner other than as observers. Nevertheless, the failure of designating the observers by the exporter or producer shall not be a cause for postponing the visit.
15. Each Party shall require that an exporter or a producer provides the records and documents referred to in paragraph 1 a) of Article 5.05 to the competent authority of the importing Party conducting a verification visit. If the records and documents are not in possession of the exporter or producer, he/she may request the producer or supplier of the materials to deliver them to the competent authority mentioned above.
16. When the competent authority of the importing Party verifies whether the regional value content, the de minimis calculation or any other requirement established under Chapter 4 (Rules of Origin) have been fulfilled, it shall adopt, where applicable, the generally accepted accounting principles applied in the territory of the Party from which the good under verification was exported.
17. Once the verification visit has been concluded, the competent authority of the importing Party shall prepare a minute of the visit, which shall include the facts confirmed by it. The exporter or producer may sign this minute.
18. Within a period of one hundred and twenty (120) days from the conclusion of the verification of origin, the competent authority shall issue a written determination of origin, including the facts, results and the legal basis for such determination, and send it to the importer, exporter or producer of the good subject to verification according to paragraph 3, to determine whether or not the good qualifies as originating.
19. Where through a verification the importing Party determines that an importer, exporter or a producer has provided more than once, a false or unfounded certificate of origin or stating that a good qualifies as originating, the importing Party may suspend preferential tariff treatment to the identical goods imported, exported or produced by that person, until it is confirmed that such person is in compliance with all the requirements under Chapter 4 (Rules of Origin). The suspension and resumption of the preferential tariff treatment shall be accompanied by a written notification, including facts and the legal basis, to the importer, exporter or producer.
20. When the competent authority of the importing Party determines that a good imported into its territory does not qualify as originating, according to the tariff classification or the value applied by the Party to one or more materials used in the production of the good, which differs from the classification or the value applied to the materials by the Party from which the good was exported, that Party shall provide that its origin determination shall not take effect until it has been notified in writing to the certifying authority of the exporting Party, to the importer of the good, to the person that has completed and signed the certificate of origin, as well as to the producer of the good.
21. A Party shall not apply a determination issued under paragraph 20 to an importation made before the date of entry into force of the determination when:
a) the competent authority of that Party from whose territory the good was exported, had issued a determination on the tariff classification or on the value of the materials, on which a person is entitled to rely; and
b) the determination mentioned in the preceding subparagraph was issued prior to the notification of the origin verification.

Article 5.07. Advance Rulings

1. Each Party shall, through its competent authority, expeditiously provide a written advance ruling, prior to the importation of a good into its territory. The advance ruling shall be issued in response to a written application made by an importer in whose territory or an exporter or producer in the territory of the other Party, based on the facts and circumstances stated by such importer, exporter or producer of the good, with respect to:
a) whether the good qualifies as originating according to Chapter 4 (Rules of Origin);
b) whether the non-originating materials used in the production of the good have undergone applicable changes on tariff classification established in Annex 4.03 (Specific Rules of Origin);
c) whether the good fulfills the requirement of regional value content established in Chapter 4 (Rules of Origin) and in Annex 4.03 (Specific Rules of Origin); or
d) whether the method applied by an exporter or producer in the territory of the other Party, according to the norms and principles of the Customs Valuation Agreement, to calculate the transaction value of a good or of the materials used in the production of the good, with respect to which an advance ruling is being requested, is adequate for demonstrating whether the good satisfies a regional value content requirement according to Chapter 4 (Rules of Origin) and in Annex 4.03 (Specific Rules of Origin).

2. Each Party shall establish directives for the issuance of advance rulings, including:
a) the obligation of the importer to provide information reasonably required to process an application for such ruling;
b) the power of the competent authority to ask at any time for additional information from the person who applies for an advance ruling, while evaluating such application;
c) the obligation of the competent authority to issue an advance ruling within a maximum period of one hundred and twenty (120) days, once all the necessary information has been collected from the applicant; and d) the obligation of the competent authority to issue an advance ruling in a complete, well-founded, and reasoned manner.

3. Each Party shall apply an advance ruling to the imports concerned, from the date on which the ruling is issued or a later date indicated in the ruling, unless such ruling has been modified or revoked according to paragraph 5.

4. Each Party shall provide any person who applies for an advance ruling the same treatment, including the same interpretation and application of the provisions of Chapter 4 (Rules of Origin), regarding the determination of origin as provided for any other person, to whom an advance ruling has been issued, whenever the facts and circumstances are identical in all substantial aspects.

5. An advance ruling may be modified or revoked by the issuing competent authority:
a) when it is based on an error:
i) in fact;
ii) in the tariff classification of the good or materials which are the subject of the ruling; or
iii) in the application of the regional value content requirement according to Chapter 4 (Rules of Origin);
b) when the ruling is not in accordance with the interpretation agreed by the Parties with respect to Chapter 4 (Rules of Origin);
c) when there is a change in the facts or circumstances on which the ruling is based;
d) for the purpose of conforming with a modification of Chapter 4 (Rules of Origin) or this Chapter; or
e) for the purpose of complying with an administrative decision independent from the issuing authority, a judicial decision or to adjust to a change in the national legislation of the Party that issued the advance ruling.
6. Each Party shall provide that any modification or revocation of an advance ruling shall enter into force from 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 the importation of a good having occurred prior to that date, unless the person to whom the advance ruling was issued has not acted according to its terms and conditions.
7. Each Party shall provide that, when its competent authority verifies the origin of a good with respect to which an advance ruling has been issued, that authority shall evaluate whether:
a) the exporter or producer has complied with the terms and conditions of the advance ruling;
b) the operations of the exporter or producer are consistent with the facts and circumstances on which the advance ruling is based; and
c) the data and calculations used in the application of criteria or methods to calculate the regional value content are correct in all substantial aspects.
8. Each Party shall provide that, when its competent authority determines that any of the requirements established in paragraph 7 has not been fulfilled, that authority may modify or revoke the advance ruling as the circumstances warrant.
9. Each Party shall provide that, when a person to whom an advance ruling has been issued demonstrates that he has acted with reasonable care and in good faith while stating the facts and circumstances on which the ruling was based, that person shall not be penalized whenever the issuing authority determines that the ruling was based on incorrect information.
10. Each Party shall provide that, when an advance ruling has been issued to a person who had falsely stated or omitted substantial facts or circumstances on which the ruling was based, or has not acted in accordance with the terms and conditions of the ruling, the competent authority may apply measures against that person according to the legislation of each Party.
11. The Parties shall provide that the holder of an advance ruling may use it solely while the facts or circumstances on which the ruling was based are maintained. In case those facts or circumstances have changed, the holder of the ruling shall be allowed to present the necessary information for the issuing authority to modify or revoke it according to paragraph 5.
12. Any good subject to an origin verification or a request for review or appeal in the territory of one of the Parties, shall not be subject to advance ruling.

Article 5.08. Confidentiality

1. Each Party shall maintain, according to its legislation, the confidentiality of confidential information collected according to this Chapter and shall protect such information from disclosure.
2. The confidential information collected in accordance with this Chapter may only be disclosed to the authorities in charge of the administration and enforcement of origin determinations, and of customs and taxation matters according to the legislation of each Party.

Article 5.09. Penalties

Each Party shall establish or maintain measures that impose criminal, civil or administrative penalties for violations of its laws and regulations related to the provisions of this Chapter.

Article 5.10. Review and Appeal

1. Each Party shall grant the same rights of review and appeal with respect to determinations and advance rulings to its importers, or to the exporters or producers of the other Party to whom those determinations and rulings have been issued according to Article 5.06 and Article 5.07.
2. When a Party denied preferential tariff treatment to a good by a determination based on non-compliance with time periods established in this Chapter, with respect to the presentation of records or other information to the competent authority of this Party, the decision made in the review or appeal shall only deal with the non-compliance of the time period to which this paragraph refers.
3. The rights referred to in paragraphs 1 and 2 include access to at least one administrative review, independent from the responsible official or office of the determination or the advance ruling under review, and access to a judicial review of the determination or ruling as the final resort of the administrative proceedings, according to the laws of each Party.

Article 5.11. Uniform Regulations

1. The Parties shall establish and implement, through their respective laws or regulations, by the date on which this Agreement enters into force, or at any later date as agreed by the Parties, the uniform regulations regarding the interpretation, application and administration of Chapter 4 (Rules of Origin), this Chapter and other matters as may be agreed by the Parties.
2. Each Party shall implement any modification or addition to the uniform regulations no later than one hundred and eighty (180) days after the Parties agree on such modification or addition, or within any other period that the Parties may agree.

Article 5.12. Cooperation

1. Each Party shall notify the other Party of the following determinations, measures and rulings, including, to the extent possible, the ones to be applied:
a) an origin determination issued as a result of a verification conducted according to Article 5.06, once the review and appeal referred to in Article 5.10 are exhausted;
b) an origin determination that the Party considers contrary to a ruling issued by the competent authority of the other Party on the tariff classification or the value of a good, or of the materials used in the manufacturing of a good;
c) a measure that establishes or significantly modifies an administrative policy that may in the future affect the determinations of origin; and
d) an advance ruling, and its revocation or modification, issued according to Article 5.07.
2. The Parties shall cooperate:
a) in the enforcement of their respective customs laws or regulations, for the implementation of this Agreement, and, if applicable, under mutual customs assistance agreements, or in any another customs related agreement which they are parties to;
b) to the extent possible and for the purpose of facilitating the flow of trade between their territories, in customs issues such as the collection and exchange of statistics regarding the importation and exportation of goods, and the exchange of information;
c) to the extent possible, in the collection and exchange of documentation on customs procedures; and
d) to the extent possible, in the verification of origin of a good, in such a way that the competent authority of the importing Party may request, for the Republic of Guatemala, the competent authority and for the Republic of China (Taiwan), the certifying authority, to conduct investigations in its territory and provide the corresponding reports.

Chapter 6. Safeguard Measures

Article 6.01. Definitions

For the purposes of this Chapter, the following terms shall be understood as:
Agreement on Safeguards: the Agreement on Safeguards which forms part of the WTO Agreement, its modifications or any successor agreement;
threat of serious injury: as defined in the Agreement on Safeguards;
competent and investigating authority: for the purposes of this Chapter, the investigating authority shall be:
a) in the case of the Republic of China (Taiwan), the International Trade Commission of the Ministry of Economic Affairs, or it successor;
b) in the case of Guatemala, Ministry of Economy or it successor;
critical circumstances: those circumstances where delay of the application of the safeguard measure would cause damage that would be difficult to repair;
serious injury: as defined in the Agreement on Safeguards;
safeguard measure: all kinds of tariff measures as applied in accordance with the provisions of this Chapter, with the exception of any derived safeguard measure of an initiate procedure before the entering into force of this Agreement 1;
domestic industry: the producers as a whole of the like or directly competitive goods operating within the territory of a Party, or those whose collective output of the like or directly competitive goods constitutes a major proportion of the total domestic production of those goods;
transition period: means a period of ten (10) years as of the date this Agreement enters into force; except when it refers to a good where tariffs should be eliminated in a period of more than ten (10) years, according to the Schedule to Annex (3.04) (Tariff Elimination) of the Party that applies the measure, in which case Transition period means the one set out in the aforementioned Schedule; and causal link: as defined in Agreement on Safeguards.
1 The Parties understand that neither tariff rate quotas nor quantitative restrictions would be a permissible form of safeguard measure.

Article 6.02. Bilateral Safeguard Measures

1. All the substantive aspects, procedures and in general the application of the safeguard measures shall be governed by this Chapter, and Article XIX of GATT 1994, the Agreement on Safeguards and the applicable legislation for each Party as suppletory.

2. During the transition period, each Party may apply a safeguard measure according to the procedure established in this Chapter if, as a result of the reduction or elimination of a customs tariff in accordance with this Agreement, an originating good from the territory of a Party is being imported into the territory of the other Party, in such increased quantities, relative to domestic production and under such conditions as to constitute a substantial cause of serious injury, or a threat thereof, to the domestic industry of the like or directly competitive good. The importing Party will be able to the extent necessary to prevent or remedy serious injury, or the threat thereof:
a) suspend the further reduction of any customs tariff provided for under this Agreement on the good; or
b) increase the customs tariff on the good to a level not to exceed the lesser of:
i) the Most Favored Nation (MFN) applied customs tariff in effect at the time the measure is taken; or
ii) the MFN applied customs tariff in effect on the day immediately preceding the date of entry into force of this Agreement.

3. Guatemala shall have the right to extend the period of application of a safeguard measure for up to an additional two (2) years beyond the maximum period provided for in Article 6.02, paragraph 4.

4. The following conditions shall be observed in the proceeding that may result in the application of a safeguard measure according to paragraph 2:
a) a Party shall, without delay and in writing, notify the other Party of the initiation of the proceeding which could have as a consequence the application of a safeguard measure against a good originating in the territory of the other Party;
b) any safeguard measure shall be initiated no later than one (1) year from the date of the initiation of the procedure; except for what is established by the Article 6.04 paragraph 15. c) no safeguard measure may be maintained:
i) for more than four (4) years, extendable for a period of four (4) additional consecutive years as provided in Article 6.04 paragraphs 27 through 29;
ii) after the termination of the transition period, unless with the consent of the Party against whose good the measure is applied.
d) a safeguard measure may be applied as many times as necessary provided that at least a period has elapsed, equivalent to half of the time during which the safeguard measure was applied for the first time.
e) the period in which a provisional safeguard measure has been applied shall be calculated for the purpose of determining the period of duration of the definitive safeguard measure established in subparagraph (c) of this paragraph.
f) provisional measures that do not become definitive shall be excluded from the limitation provided for in subparagraph (d) of this paragraph.
g) on the termination of the safeguard measure, the applied customs tariff shall be the rate as that in the Tariff Reduction Schedule.

5. In critical circumstances a Party may apply provisional bilateral safeguard measures pursuant to a preliminary determination that there is clear evidence that increased imports have been given on originating goods of the other Party, as a result of the reduction or elimination of duty pursuant this Agreement and under such conditions as to constitute a serious injury or threat thereof. The duration of provisional measures shall not exceed two hundred (200) days.

Article 6.03. Global Safeguard Measures

1. Each Party shall reserve its rights and obligations in accordance with Article XIX of the GATT 1994, and the Agreement on Safeguards, its modifications or successor provisions, except those relating to compensation or retaliation and exclusion of a safeguard measure which are inconsistent with the provisions of this Article.

2. Any Party applying a safeguard measure in accordance with paragraph 1 shall exclude goods imported from the other Party from this measure, unless:
a) imports from the other Party account for a substantial share of total imports. Those imports normally shall not be considered to be substantial if that Party is not among the top three suppliers of the good subject to the proceeding, measured in terms of its import share during the most recent three (3) year period; and
b) imports from the other Party contribute importantly to the serious injury, or threat thereof, caused by total imports. To determine this, the investigating authority shall consider factors such as the change in the import share of the other Party in the total imports, as well as the import volume of the other Party and the changes in that volume. Normally, the imports from a Party shall not be considered to contribute importantly to serious injury, or threat thereof, if its growth rate of imports from a Party during the period in which the injurious surge in imports occurred is appreciably lower than the growth rate of total imports from all sources during the same period.

3. A Party shall notify in writing in a fifteen (15) day term to the other Party of the initiation of a proceeding that may result in the application of a safeguard measure, in accordance with paragraph 1 of this Article.

4. No Party may apply a measure under paragraph 1 of this Article, that imposes restrictions on a good, without previous notification in writing to the other Party, and without giving appropriate opportunity to carry out consultations in advance with the other Party, with as much anticipation as feasible before applying it;

5. When a Party determines, in accordance with this Article, that it needs to apply a safeguard measure to those goods originating from the other Party, the measure applied to those goods shall consist, only and exclusively, of tariff measures;

6. The Party applying a safeguard measure under this Article shall provide to the other Party mutually agreed trade liberalization compensation, in the form of concessions, having substantially equivalent trade effects or equivalent to the additional customs tariff expected to result from the safeguard measure;

7. If the Parties are unable to agree on the compensation, the Party against whose good the safeguard measure is applied may impose measures which have trade effects substantially equivalent to the effects of the safeguard measure applied pursuant to paragraph 1 of this Article.

Article 6.04. Administration of the Safeguard Measure Proceedings

1. Each Party shall ensure the consistent impartial and reasonable application of the applicable legislation of each Party, regulations, decisions and rulings governing the application of safeguards proceeding, that shall be consistent with the provisions set forth in Article XIX of GATT 1994, Agreement on Safeguards its modifications or successors.

2. Safeguard proceedings and the determination of the existence of serious injury or threat thereof shall be entrusted to the investigating authority of each Party. The investigating authority empowered under the domestic law of each Party to conduct these proceedings should be provided with all the necessary resources to fulfill its duties.

3. Each Party shall comply in an equitable, timely, transparent and effective manner with the safeguard proceedings under this Chapter. Proceeding

4. The investigating authority may initiate a proceeding ex officio or by a petition of a domestic industry. When the investigating authority acts ex officio it shall notify the domestic industry to corroborate with its consent to continue the investigation.

5. When the procedure is initiated ex officio, or is a result of a petition by the domestic industry, support by at least 25% of said domestic industry shall be required. Content of the Petition

6. The domestic industry that files a petition to initiate an investigation shall provide the following information in the petition, to the extent that such information is publicly available from governmental or other sources, or its best estimates and the basis therefore if such information is not thus available:
a) designation of the investigating authority to whom the petition is presented;
b) data of identification of the petitioner or petitioners, as well as the location of the establishments in which they produce the like or directly competitive good. A proxy shall document the capacity in which it acts;
c) documentation to certify petitioner's share of domestic production of the like or directly competitive goods they represent and reasons for claiming that they represent said domestic industry;
d) description of the imported good concerned at the level of tariff subheading under which that good is classified, or when necessary at a more detailed level, the effective tariff treatment as well as the specifications and elements that allow to compare them with domestic goods;
e) description of the affected like or directly competitive domestic goods and its tariff subheading;
f) volume and value of the imports;
g) import data for each of the three (3) full years immediately prior to the initiation of the safeguard proceedings that form the basis of the claim that the good is being imported into the territory of the other Party, in increased quantities, either in absolute terms or relative to domestic production;
h) cause of injury: the listing and description of the alleged causes of injury or threat thereof, and a summary of the basis for the assertion that imports of the good concerned increased relative to domestic production. The quantitative and objective indicators that denote the nature and cause of injury or threat thereof to the domestic industry, such as changes in the level of sales, prices, production, productivity, utilization of installed capacity, market share, profits or losses, and employment;
i) volume and value of the domestic production of the like or directly competitive goods for each of the three (3) full years immediately prior to the initiation of the safeguard proceeding;
j) petition to initiate the investigation and for the imposition of a safeguard measure;
k) lists of known importers and exporters with addresses or place to serve them notice;
l) petitioner's addresses or place to serve them notice;
m) place and date of petition; and
n) signature of the petitioner or legal representative. Acceptance or Rejection of the Petition

7. After receiving a petition, the investigating authority shall review it and determine within thirty (30) days whether to accept the petition.
a) If the petition fulfills the requirements, the investigating authority shall initiate the investigation;
b) If the petition does not fulfill the requirements, the investigating authority shall notify the petitioner of the requirement to fulfill them within a period of fifteen (15) days and this term shall be extended for the same period at the request of the interested parties;
c) the investigating authority may reject the petition, through a justified resolution, if there are not enough elements to justify the investigation or if the petitioner fails to fulfill the standing requirements of the domestic industry support. If the petitioner fulfills the requirements pursuant to part b) of this paragraph the investigating authority shall, within thirty (30) days after the petitioner fulfills the requirements, accept the petition and initiate the investigation or reject it. If the petitioner does not fulfill the requirements the investigating authority shall reject it, without prejudice of submittal of a new petition by the interested parties at a later date. Resolution to Initiate an Investigation

8. The resolution to initiate an investigation shall contain as minimum:
a) identification of the investigating authority, as well as the place and date on which resolution is issued;
b) indication that the petition is accepted with attached documents;
c) name of individual or legal person of domestic producers of the like or directly competitive goods that support the petition and their addresses to be served notice;
d) description of the imported good concerned at the level of the tariff subheading under which that good is classified, or when necessary at a more detailed level, the effective tariff treatment as well as a description of the like or directly competitive goods.
e) the basis that sustains the resolution;
f) previous representative period;
g) time period for interested parties to submit written allegations and related documents, and
h) other relevant data.

Notifications in General
9. The notifications in the proceedings shall be made in writing within fifteen (15) days after the date the resolutions are issued, with attached copies of public versions of the petition and documents.

Publication Requirements
10. When initiating an investigation, the investigating authority shall publish a notice of initiation in an official journal of the Party or nation-wide newspaper, within a period of ten (10) days starting from the acceptance of the petition. The notification of the investigation initiation shall be sent through the competent authority to the other Party by certified mail, courier, fax or any other means that will ensure the reception of it.

Opposition
11. The investigating authority shall grant forty-five (45) days to the interested parties, starting from the day after the notification that the investigation has initiated, to allow them to submit their position and introduce evidence. The investigating authority may, at the request of the interested parties, extend the period by not more than thirty (30) days.

Previous Representative Period
12. The previous representative period, shall be the basis for the determination of the existence of serious injury or threat thereof to the domestic industry and shall be determined by the investigating authority upon initiating the investigation and can be modified when necessary.

Consultations
13. Once a petition is accepted, the Party that intends to initiate the case shall notify the other Party, and the Parties may hold consultations at any time during the proceeding, without interrupting them.

14. During these consultations the Parties may address, among others, any issue relating to the investigation, the elimination of the measure, and in general, any related issues.

Time limit of investigation
15. An investigation shall normally be concluded within six (6) months, and in exceptional circumstances qualified by the investigating authority, shall conclude twelve (12) months from the initiation of the investigation.

Information Required
16. The investigating authority may request all kinds of information from the interested parties. When the interested parties deny access to the necessary information, or they do not cooperate within the period set by the investigating authority, it can make a determination based on the evidence available.

Provisional Safeguard Measures
17. If the justified elements are gathered for the petition of a provisional measure, and the investigating authority has made an affirmative injury determination or threat thereof, it may recommend that the competent authority imposes a provisional measure.

18. Provisional measures shall take the form of customs tariff increases to be promptly refunded, pursuant to this Chapter, if the subsequent investigation does not determine that increased imports have caused or threatened to cause serious injury to a domestic industry.

Evidence of Serious Injury or Threat Thereof
19. In conducting its proceedings the investigating authority shall gather, to the best of its ability, all relevant information appropriate to make the determination. It shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of the domestic industry, including the rate and amount of the increased import quantities, absolute or relative to domestic production of the good concerned, the share of the domestic market taken by the increased imports, changes in the level of sales, production, productivity, capacity utilization, profits and losses, and employment. In making its determination, the investigating authority may also consider other economic factors, such as changes in prices and inventories, and the ability of the domestic industry to raise capital or investments.

Public Hearing
20. In the course of each proceeding, the investigating authority shall: a) notify the date and the place of the public hearing to the interested parties, including the importers and exporters, fifteen (15) days before it is held, to allow them to appear in person or through a representative to submit evidence, allegations and be heard on issues of serious injury or threat thereof and the appropriate remedy; and b) provide an opportunity to all interested parties appearing at hearing to express their arguments and to ask questions.

21. After the public hearing the interested parties should have fifteen (15) days to submit their supplementary evidence and conclusions on the investigation, in writing, to the investigating authority.

Confidential Information
22. The investigating authority shall establish or maintain procedures for the treatment of confidential information protected by the national legislation that is provided in the course of the proceeding, and shall request that the interested parties furnish non-confidential written summaries thereof. If the interested parties indicate that the information cannot be summarized, they shall explain the reasons why a summary cannot be provided. Unless it is demonstrated that the information is accurate, in a convincing way and from an accurate source, the authority may disregard that information.

23. The investigating authority shall not disclose any confidential information provided in accordance with any obligation related to the confidential information obtained in the course of the proceedings.

Deliberation and Determination
24. Except in critical circumstances or involving bilateral safeguard measures involving to perishable agricultural goods, the investigating authority, before making definitive determination in a proceeding for the application of safeguard measures, shall allow sufficient time to gather and check relevant information, shall hold a public hearing and provide opportunity for all interested parties to prepare and submit their views.

25. The investigating authority shall promptly publish a final determination notice in an official journal or nation-wide newspaper publicizing the results of the investigation and the reasoned conclusions on all pertinent issues of law and fact. The determination notice shall include a description of the imported good, its tariff subheading, the methodology applied and the findings made in the proceedings. The statement of reasons shall set out the basis for the determination, including a description of:
a) the domestic industry seriously injured or threatened with serious injury;
b) information supporting a finding that imports are increasing, the domestic industry is seriously injured or threatened with serious injury, and increasing imports are causing or threatening to cause serious injury; and
c) if provided for by domestic law, any finding or recommendation regarding the appropriate remedy, as well as the basis thereof.

26. Each Party shall ensure that the decisions in safeguard proceedings may be subject to review by judicial or administrative proceedings of the Party, as provided in its domestic laws. Negative determinations of the existence of serious injury or threat thereof shall not be subject to modification by the investigating authority, unless the modification is required by such judicial or administrative review. 

Extension of Measures
27. If the importing Party determines that reasons justify the extension of a bilateral safeguard measure, the Party shall notify the competent authority of the other Party of its intention to extend the measure at least ninety (90) days before the measure is expected to expire, and shall prove that the reasons leading to its application persist, for the purpose of holding respective consultations which shall be done according to the provisions of this Article.

28. The domestic industry that submitted the request for an extension of measures shall present a readjustment plan including variables controllable by the domestic industry or production involved to eliminate injury or threat thereof.

29. The notifications of extension and compensation shall be presented pursuant to this Article prior to the expiration of the applied measures.

Compensation
30. The Party that applies a safeguard measure according to this Article shall provide to the other Party mutually agreed compensation in the form of concessions that have commercial effects substantially equivalent to the value of the additional customs duties that are expected from the safeguard measure. However, no compensation shall be provided for the first three (3) years that the safeguard measure is in effect, as well as the right of suspension of the concession or other obligations substantially equivalent shall not be exercised by the Party against which the safeguard measure is applied during these three (3) years.

31. Following the expiration of the three (3) years mentioned in the previous paragraph, the Party that applies the measure shall give opportunity to hold consultations within ninety (90) days following the expiration. If the Parties cannot reach an agreement on compensation, the Party to whose good the safeguard measure is applied shall be able to suspend concessions or other obligations that have commercial effects substantially equivalent to those of the applied safeguard measure according to this Article, after having notified the other Party in writing at least thirty (30) days before imposing these measures. The Party shall apply the tariff measure during the necessary minimum period to reach the effects substantially equivalent and in any event it shall cease when the other Party finishes the application of the safeguard measure.

Article 6.05. Dispute Settlement as Regards of Safeguard Measures

No Party shall request the establishment of an arbitral panel, under Article 18.07 (Request for an Arbitral Panel), before the application of a safeguard measure by the other Party.

Chapter 7. Unfair Trade Practices

Article 7.01. Anti-dumping and Countervailing Measures

The Parties confirm their rights and obligations for the application of antidumping or countervailing duties imposed by a Party on the goods imported from the territory of the other Party, such measures shall be subject to Article VI and XVI of the General Agreement on Tariffs and Trade 1994, the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 and the Agreement on Subsidies and Countervailing Measures.

Article 7.02. Scope of Application

Except as provided in this Chapter, the antidumping and countervailing duties shall be applied by the Parties in accordance with the provisions of the agreements set forth in Article 7.01 and the legislation of each Party as suppletory. 1

Article 7.03. Competent Authority

For the investigation and application of the provisions of this Chapter the competent authority in the case of Guatemala is the Ministry of Economy or it successor and in the case of ROC, the Ministry of Economic Affairs and the Ministry of Finance, or their successors.

Article 7.04. Consultations

Prior to initiating an antidumping or countervailing investigation under this Chapter, the Parties may hold consultations in order to clarify the facts of the situations and to arrive at a mutually agreed solution.

Article 7.05. Support of Domestic Industry

An antidumping or countervailing investigation shall not be initiated between the Parties unless the authority have determined that the application has been made by on behalf of the domestic industry whose collective output constitutes more than fifty per cent (50 %) of the total production of the like good produced by that portion of the domestic industry expressing either support for or opposition to the application, however no investigation shall be initiated when the domestic producers expressly supporting the application account for less than twenty five per cent (25 %) of the total production of the like product produced by the domestic industry. 

Article 7.06. Maximum Period for Completing an Investigation

An investigation on dumping or subsidy practices initiated by a Party against the goods imported from the territory of the other Party shall be concluded within one (1) year and, in special circumstances, this period may be extended to no more than eighteen (18) months, after its initiation.

Article 7.07. Duration of Measures

Notwithstanding the right to review in accordance with the WTO Agreements included in Article 7.01, any definitive antidumping or countervailing duty imposed by a Party on a good imported from territory of the other Party shall be terminated on a date not later than five (5) years from its imposition.

Part THREE. Trade Barriers

Chapter 8. Sanitary and Phytosanitary Measures

Article 8.01. Definitions

For purposes of this Chapter, the Parties shall apply the definitions and terms set out in:
a) the Agreement on the Application of Sanitary and Phytosanitary Measures, that forms a part of the WTO, Agreement, hereinafter referred to as ASPS;
b) the Office International des Epizooties, hereinafter, referred to as OIE;
c) the International Plant Protection Convention, hereinafter referred to as IPPC; and
d) the Codex Alimentarius Commission, hereinafter referred to as Codex.

Article 8.02. General Provisions

1. The authorities legally responsible for ensuring the compliance with the sanitary and phytosanitary obligations provided in this Chapter shall be deemed as the competent authorities.
2. The Parties, on the basis of the ASPS, established this framework of rules and disciplines that shall guide the adoption and implementation of sanitary and phytosanitary measures. 3. The Parties shall facilitate trade through mutual cooperation to prevent the introduction or spreading of pests or diseases and to improve plant health, animal health and food safety.

Article 8.03. Rights of the Parties

The Parties, according to the ASPS, may:
a) establish, adopt, maintain or implement any sanitary or phytosanitary measures in their territories , only to the extent necessary to protect human life and health (food safety) and animal life and health or to preserve plant health, even if they are stricter than international standard, guidelines or recommendations, provided that there is a scientific basis to justify them;
b) implement the sanitary and phytosanitary measures only to the extent necessary to reach an appropriate level of protection; and
c) verify that plants, animals, products and by-products bound for export are subject to sanitary and phytosanitary monitoring to ensure conformity with the requirements of the sanitary and phytosanitary measures established by the importing Party.

Article 8.04. Obligations of the Parties

1. Sanitary and phytosanitary measures shall not constitute a disguised restriction to trade and shall not have the purpose or effect of creating an unnecessary obstacle to trade between the Parties.
2. Sanitary and phytosanitary measures shall be based on scientific principles, shall only be maintained if there are reasons to sustain them and shall be based on risk assessment.
3. Sanitary and phytosanitary measures shall be based on international standards, guidelines or recommendations.
4. Where conditions are identical or similar, sanitary and phytosanitary measures shall not discriminate arbitrarily or unjustifiably.

Article 8.05. International Standards and Harmonization