The Parties shall adopt or maintain expedited customs procedures for fast delivery shipments, maintaining appropriate screening and selection systems. These procedures shall:
(a) provide for the electronic transmission and processing of information necessary for the clearance of a fast delivery shipment prior to its arrival;
(b) to allow the electronic presentation of a single manifest covering all the goods contained in a shipment transported by an express delivery service;
(c) provide for the release of certain goods with a minimum of documentation, in accordance with its national legislation; and
(d) under normal circumstances, provide for the clearance of expedited shipments within 6 hours of presentation of the necessary customs documents, provided the shipment has arrived and no irregularities have been detected.
Article 6.9. Means of Challenge
Each Party shall ensure, with respect to its administrative acts on customs matters, access to:
(a) an administrative review body independent of the official or agency issuing the administrative acts, in accordance with its national legislation; and
(b) ajudicial review instance of the decision or of the decision taken at the last administrative review instance, in accordance with its national legislation.
Article 6.10. Sanctions
The Parties shall adopt or maintain a system that allows for the imposition of civil or administrative penalties and, where appropriate, criminal penalties for violations of their customs laws and regulations, including those governing tariff classification, customs valuation, country of origin and claims for preferential tariff treatment under this Agreement.
Article 6.11. Authorized Economic Operators
1. Each Party shall promote the implementation of Authorized Economic Operators in accordance with the WCO Framework of Standards to Secure and Facilitate Global Trade (known as the SAFE Framework of Standards), with the objective of strengthening the security of the international trade supply chain and facilitating the clearance of its goods. The obligations, requirements, formalities and benefits of Authorized Economic Operators will be established in accordance with their national legislation.
2. The Parties may negotiate the mutual recognition of their Authorized Economic Operators, with the objective of avoiding the duplication of security controls and contributing significantly to the facilitation and control of goods circulating in the international trade logistics chain.
Article 6.12. Single Window for Foreign Trade
Each Party shall promote the creation of a foreign trade single window toexpedite and facilitate trade. To the extent possible, the Parties shall seek the interconnection between their respective windows.
Chapter VII. Trade Defense
Section A. Bilateral Safeguards Measures
Article 7.1. Definitions
For the purposes of this Section, the following definitions shall apply:
threat of serious harm: the clear imminence of serious harm based on facts and not merely on allegation, conjecture or remote possibility;
competent investigating authority:
(a) In the case of Costa Rica, the Trade Defense Directorate of the Ministry of Economy, Industry and Commerce;
(b) in the case of El Salvador, the Directorate for the Administration of Trade Agreements of the Ministry of Economy;
(c) In the case of Guatemala, the Direcci6n de Administracién del Comercio Exterior del Ministerio de Economia;
(d) in the case of Honduras, the General Directorate for Economic Integration and Trade Policy of the Secretariat of State in the Offices of Industry and Commerce;
(e) in the case of Mexico, the International Trade Practices Unit of the Ministry of Economy; and
(f) in the case of Nicaragua, the Directorate for the Implementation and Negotiation of Trade Agreements;
or their successors;
serious injury: a significant overall impairment of the condition of a domestic industry;
directly competing merchandise: that which, not being similar to the one being compared, is essentially equivalent for commercial purposes because it is dedicated to the same use and is interchangeable with it;
similar merchandise: that which, although not identical in all respects to the merchandise with which it is compared, has similar characteristics and composition, which allows it to fulfill the same functions and be commercially interchangeable with it;
transition period: the period of tariff relief applicable to each good under the Tariff Treatment Program, plus an additional period of 2 years after the tariff relief for the good in question ends; and
domestic industry: the group of producers of like or directly competitive goods operating in the territory of a Party, or those producers whose collective production of like or directly competitive goods constitutes a major proportion of the total domestic production of that good.
Article 7.2. Imposition of a Bilateral Safeguard Measure
1. A Party may apply a measure described in paragraph 2, only during the transition period, if it has determined that as a result of the reduction or elimination of a customs duty under this Agreement, an originating good is imported into the territory of the Party in such increased quantities in absolute terms or relative to domestic production and under such conditions as to constitute serious injury or threat thereof to the domestic industry producing a like or directly competitive good.
2. If the conditions set out in paragraph 1 are met, to the extent necessary to prevent or remedy serious injury or threat of serious injury and to facilitate adjustment, a Party may:
(a) suspend the future reduction of any customs duties provided for in this Agreement for the good; or
(b) increase the customs duty for the good to a level not to exceed the lesser of (1):
(i) the MFN customs tariff applied at the time the measure is applied, or
(ii) the MFN customs tariff applied on the day immediately preceding the entry into force of this Agreement.
3. No Party may adopt bilateral safeguard measures on goods that are subject to tariff-rate quotas provided for in this Agreement.
4. No Party may maintain a bilateral safeguard measure:
(a) for a period exceeding 2 years, including the duration of a provisional safeguard measure taken pursuant to Article 7.4, except that this period may be extended for an additional year, if the competent investigating authority determines, in accordance with the procedures set forth in Article 7.3, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment, and that there is evidence that the domestic industry has been complying with the adjustment plan; and
(b) after the expiration of the transition period, except with the consent of the other Party.
5. In order to facilitate adjustment in a situation where the expected duration of a bilateral safeguard measure exceeds one year, the Party applying the measure shall progressively release it at regular intervals during the period of application.
6. The Parties may adopt a bilateral safeguard for a second time on the same good, provided that a period equal to the duration of the previous bilateral safeguard measure, including any extension, has elapsed, starting from the termination of the previous bilateral safeguard measure. The duration of this measure shall not exceed 18 months.
7. Upon termination of the application of the bilateral safeguard measure, the customs duty that shall apply to the good in question shall be the one that corresponds to that date according to the Tariff Treatment Program.
8. No Party may apply a bilateral safeguard measure before one year has elapsed from the date of entry into force of this Agreement.
Article 7.3. Investigation Procedures and Transparency Requirements
1. A Party may apply a safeguard measure only after an investigation conducted by its competent investigating authority, in accordance with Articles 3 and 4.2(c) of the Agreement on Safeguards. For these purposes, Articles 3 and 4.2(c) of the Agreement on Safeguards are incorporated into this Agreement and form an integral part thereof, mutatis mutandis.
2. In the investigation described in paragraph 1, the Party shall comply with the requirements of Article 4.2(a) and (b) of the Agreement on Safeguards. For these purposes, Article 4.2(a) and (b) of the Agreement on Safeguards are incorporated into this Agreement and form an integral part thereof, mutatis mutandis.
Article 7.4. Provisional Bilateral Safeguard Measures
1. In critical circumstances, where any delay would cause injury which would be difficult to repair, a Party may apply a provisional bilateral safeguard measure pursuant to a preliminary determination that there is clear evidence that increased imports from the other Party have caused or are threatening to cause serious injury to the domestic industry.
2. The duration of the provisional bilateral safeguard shall not exceed 200 days and shall take any of the forms provided for in Article 7.2.2 during which the relevant requirements of Articles 7.2 and 7.3 must be met.
7.3. The guarantees or economic resources received for provisional measures shall be released or reimbursed promptly when it is determined that it is not appropriate to apply a definitive safeguard.
Article 7.5. Notification and Consultation
1. A Party shall promptly notify in writing the other Party that may be affected, when:
(a) initiate a bilateral safeguard procedure in accordance with this Section;
(6) adoptan interim bilateral safeguard measure; and (c) adopta definitive bilateral safeguard measure or decide to extend it.
2. In addition to the referred notification, the Party that carries out any of the actions referred to in paragraph 1, shall publish its determination in the corresponding official dissemination organs.
3. The Party conducting a bilateral safeguard proceeding shall provide to the Party whose good is subject to such proceeding a copy of the public version of the final report of its competent investigating authority required under Article 7.3.1.
4. Upon request of the Party whose good is subject to a bilateral safeguard proceeding under this Chapter, the Party conducting the proceeding shall enter into consultations with the requesting Party with a view to reviewing the notifications under paragraph 1 or any public notice or report issued by the competent investigating authority in connection with such proceeding.
Article 7.6. Compensation
1. The Party applying a bilateral safeguard measure shall, after consultation with the Party against whose good the measure is applied, provide to that Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent effect on trade or equivalent to the value of the additional customs duties applied as a result of the measure. The Party against whose good the bilateral safeguard measure is applied shall provide an opportunity for such consultations within 30 days of the application of the final bilateral safeguard measure.
2. If consultations under paragraph 1 do not result in a trade liberalization compensation agreement or are not completed within 30 days, the Party against whose good the bilateral safeguard measure is applied may suspend the granting of tariff concessions substantially equivalent to those of the bilateral safeguard measure.
3. A Party that decides to suspend tariff concessions pursuant to paragraph 2 shall notify the Party applying the bilateral safeguard measure in writing at least 30 days prior to suspending concessions.
4. The obligation to grant compensation pursuant to paragraph 1 and the right to suspend tariff concessions pursuant to paragraph 2 shall terminate on the date on which the bilateral safeguard measure is eliminated.
Section B. Global Safeguarding Measures
Article 7.7. Global Safeguarding Measures
1. Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the Agreement on Safeguards.
2. This Section confers no additional rights or obligations on the Parties with respect to actions taken pursuant to Article XIX of the GATT 1994 and the Agreement on Safeguards, except the obligation that the Party imposing a global safeguard measure shall exclude imports of a good originating in the other Party, if such imports:
(a) donotrepresent a substantial part of total imports; and
(b) do not contribute significantly to the serious harm or threat of serious harm.
3. For the purposes of paragraph 2, the following criteria shall be taken into account:
(a) imports of a good from the other Party shall not normally be considered to account for a substantial part of total imports if they are not among the top 5 suppliers of the good subject to the proceeding, based on their share of total imports of that good during the immediately preceding 3 years;
(b) imports from the other Party shall not normally be considered to contribute importantly to serious injury or threat of serious injury if their rate of growth during the period in which the injurious increase in imports is substantially less than the rate of growth of total imports of the like or directly competitive merchandise from all sources of supply during the same period; and
(c) changes in the Party's share of total imports and the volume of imports shall be taken into account in the determination of material contribution to serious injury or threat of serious injury.
4. No Party shall apply, with respect to the same good and during the same period:
(a) a bilateral safeguard measure; and
(b) a measure under Article XIX of GATT 1994 and the Agreement on Safeguards.
5. Except for the provisions set forth in paragraphs 2, 3 and 4, Chapter XVII (Dispute Settlement) shall not apply to this Section.
Section C. Antidumping and Countervailing Measures
Article 7.8. Antidumping and Countervailing Measures
1. Each Party retains its rights and obligations under Articles VI and XVI of the GATT 1994, the Antidumping Agreement and the Agreement on Subsidies and Countervailing Measures.
2. Nothing in this Agreement, including the provisions of Chapter XVII (Dispute Settlement), shall be construed to impose any rights or obligations on the Parties with respect to antidumping and countervailing duty measures.
Section D. Cooperation between the Parties
Article 7.9. Cooperation
The Parties agree to establish a mechanism for cooperation between their competent investigating authorities, which may include, among others, the exchange of non-confidential information from trade defense investigations with third parties and technical assistance.
Chapter VIII. Sanitary and Phytosanitary Measures
Article 8.1. Definitions
For the purposes of this Chapter, the following definitions shall apply: competent authority: those authorities legally responsible for ensuring compliance with the sanitary and phytosanitary requirements of this Chapter, and those responsible for developing and issuing sanitary and phytosanitary measures.
In addition, the definitions set forth in Annex A of the SPS Agreement shall be used, and for matters not provided for in that Annex, those established by:
(a) the World Organization for Animal Health (hereinafter "OIE");
(b) the International Plant Protection Convention (hereinafter "IPPC"); and
(c) the Codex Alimentarius Commission.
Article 8.2. Objectives
The objectives of this Chapter are to protect human, animal and plant life and health in the territories of the Parties, as well as to facilitate and increase trade in goods by identifying, preventing and eliminating unnecessary barriers to trade between the Parties that may arise as a result of the preparation, adoption and application of sanitary and phytosanitary measures within the terms of the SPS Agreement.
Article 8.3. Incorporation of Rights and Obligations
The rights and obligations established in the SPS Agreement are incorporated into and form part of this Agreement, without prejudice to the provisions of this Chapter.
Article 8.4. Scope of Application
This Chapter applies to all sanitary and phytosanitary measures that may directly or indirectly affect trade in goods between the Parties.
Article 8.5. Rights and Obligations
1. The Parties may adopt, maintain or apply sanitary or phytosanitary measures to achieve an appropriate level of sanitary or phytosanitary protection, provided they are based on scientific principles.
2. The Parties may adopt, maintain or apply sanitary or phytosanitary measures with a higher level of protection than that which would be achieved by the application of a measure based on an international standard, guideline or recommendation, provided that there is scientific justification for doing so.
3. No Party may adopt, maintain or apply sanitary or phytosanitary measures that have the purpose or the effect of creating a disguised restriction on trade or an unnecessary obstacle to trade.
Article 8.6. Equivalence
At the request of the exporting Party, the importing Party shall accept the equivalence of a sanitary or phytosanitary measure even if it differs from its own, provided that the exporting Party objectively demonstrates that such measure provides an adequate level of sanitary and phytosanitary protection. For these purposes, the Parties shall hold consultations for such recognition, based on international standards and guidelines or recommendations and the SPS Agreement.
Article 8.7. Risk Assessment and Appropriate Level of SPS Protection
1. In addition to the provisions of Article 5 of the SPS Agreement, when conducting a risk assessment on a commodity, including food additives and physical, chemical and biological contaminants, the Parties shall take into account the following factors:
(a) epidemiology of diseases and pests at risk;
(b) critical control points in the production, handling, packing, packaging, packing and transportation processes; and
(c) the applicable quarantine measures and treatments that satisfy the importing Party in terms of risk mitigation.
2. When the exporting Party requests access of its products and by-products to the market of the importing Party, the latter shall respond within a period not exceeding 30 days, informing whether:
(a) a risk assessment is necessary, as well as the procedures and information required for its preparation;
(b) once the exporting Party has submitted sufficient information to the importing Party to complete the risk assessment referred to in subparagraph (a), both Parties shall agree on a time period for completion of the risk assessment and, where appropriate, the importing Party shall immediately modify the provisional sanitary or phytosanitary measure; and
(c) upon completion of the risk analysis process, the resulting document and its supporting documentation shall be communicated to the exporting Party.
3. Where a Party is able to achieve its appropriate level of protection through the gradual application of a sanitary or phytosanitary measure, it may, at the request of the other Party and in accordance with this Chapter, allow such gradual application or grant specific exceptions for the measure, during established periods, taking into consideration the export interests of the requesting Party.
Article 8.8. Recognition of Pest or Disease Free Areas or Zones and Areas or Zones of Low Prevalence of Pests or Diseases
1. The Parties recognize the concept of pest- or disease-free areas or zones and areas or zones of low pest or disease prevalence, in accordance with the SPS Agreement, as well as the standards, guidelines, recommendations and recognitions of the OIE and IPPC.
2. For the purposes of paragraph 1, the Committee on Sanitary and Phytosanitary Measures shall develop a procedure.
Article 8.9. Control, Inspection and Approval Procedures
1. The Parties, through the Committee on Sanitary and Phytosanitary Measures, shall establish control, inspection and approval procedures, taking into consideration Article 8 and Annex C of the SPS Agreement.
2. The costs arising from the control, inspection and approval procedures shall be borne by the interested parties.
Article 8.10. Transparency
1. The Parties shall make their best efforts to make known their annual or semi- annual work program on sanitary and phytosanitary measures at the same time that it is made public to their nationals.
2. The Parties shall transmit, preferably electronically, to the notification and information services established in accordance with the SPS Agreement, the draft sanitary and phytosanitary regulations they intend to adopt. Each Party shall ensure that the draft sanitary and phytosanitary regulations it intends to adopt are subject to consultations for a period of 60 days, so that the Party concerned may be aware of their content, as well as to allow for comments from any Party or interested persons, and that these may be considered. Emergency situations shall be exempt from the aforementioned period, in accordance with Annex B of the SPS Agreement.
3. Where a Party considers that a sanitary or phytosanitary measure of the other Party adversely affects or may adversely affect its exports, and the measure is not based on relevant international standards, guidelines or recommendations, it may request that Party to inform it in writing, within a period not exceeding 30 days, of the reasons for the measure.
4. Additionally, the Parties shall notify each other:
(a) changes occurring in the field of animal health and food safety, such as the appearance of exotic diseases or sanitary alerts in food products within 24 hours of the diagnostic detection of the problem;
(b) changes in the phytosanitary field, such as the appearance of quarantine pests or the spread of pests under official control, within 72 hours of their verification;
(c) findings of epidemiological importance and significant changes in relation to diseases and pests not included in subparagraphs (a) and (b) that may affect trade between the Parties, within a maximum period of 10 days;
(d) disease outbreaks in which the consumption of imported processed or unprocessed foods is scientifically proven to be causal;
(e) the causes or reasons why a good of the exporting Party is rejected, within 7 days, with the exception of emergency situations, which shall be notified immediately; and/or
(f) the exchange of information on matters related to the development and application of sanitary and phytosanitary measures that affect or may affect trade between the Parties, with a view to minimizing their negative effects on trade.
Article 8.11. Emergency Measures
1. The importing Party may adopt, for reasons of high risk to human, animal or plant life or health, emergency measures necessary for their protection, in accordance with the provisions of paragraph 2 of Annex B of the SPS Agreement. For shipments in transit between the Parties, the importing Party shall consider the most appropriate and proportionate solution to avoid unnecessary disruptions to trade.
2. The importing Party that adopts the measures provided for in paragraph 1 shall inform the exporting Party at the latest within 3 days of their adoption. The exporting Party may request any information related to the sanitary and phytosanitary situation and the measures adopted by the importing Party, and the importing Party shall respond as soon as the requested information is available.
3. Any of the Parties involved may request consultations related to the situation within 15 days of the request. These consultations shall be carried out in order to avoid unnecessary interruptions to trade, considering options that facilitate the implementation or even the substitution of the measures.
Article 8.12. Regulatory Cooperation
1. Regulatory cooperation between the Parties aims to strengthen mechanisms to increase transparency in the processes of sanitary and phytosanitary measures, as well as to simplify regulatory processes and promote the compatibility and harmonization of sanitary and phytosanitary measures.
2. The Parties, through the Committee on Sanitary and Phytosanitary Measures, shall create work programs at the bilateral or regional level on regulatory cooperation that include the regulatory authorities involved, the corresponding sectors and work schedules, in order to establish specific actions to facilitate trade between the Parties.
3. Regulatory cooperation activities may include, but are not limited to:
(a) exchange of information in order to learn about the regulatory systems of the other Parties;
(b) Promote the harmonization and compatibility of sanitary and phytosanitary measures, based on the standards, guidelines and recommendations of the competent international organizations;
(c) promote the recognition of equivalence of sanitary and phytosanitary measures;
(d) to the extent possible, to bring common positions, based on mutual interests, to the competent international organizations; and
(e) development of mechanisms for technical assistance and confidence building between the Parties.