Title
FREE TRADE AGREEMENT BETWEEN THE GOVERNMENT OF MALAYSIA AND THE GOVERNMENT OF THE REPUBLIC OF TURKEY
Preamble
The Government of Malaysia and The Government of the Republic of Turkey (hereinafter referred to as "the Parties"):
Inspired by their longstanding friendship and cooperation and growing trade relationship;
Desiring to enlarge the framework of relations between them through further liberalising trade;
Recognising that the strengthening of their economic partnership will bring economic and social benefits, create new opportunities for employment and improve the living standards of their people;
Building on their respective rights and obligations under the World Trade Organization and other multilateral, regional and bilateral agreements and arrangements;
Confirming their shared commitment to trade facilitation through removing non-tariff barriers to trade between them;
Desiring to strengthen the cooperative framework for the conduct of economic relations to ensure it is dynamic and it encourages broader and deeper economic cooperation;
Aware that economic development, social development and environmental protection are components of sustainable development and that free trade agreements can play an important role in promoting sustainable development; and
Resolved to promote bilateral trade through the establishment of clear and mutually advantageous trade rules and the avoidance of trade barriers,
Have agreed as follows:
Body
Chapter 1. Initial Provisions
Article 1.1. Establishment of a Free Trade Area
The Parties, consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994, hereby establish a free trade area.
Article 1.2. Objectives
The objectives of this Agreement are:
(a) to increase and enhance the economic cooperation between the Parties;
(b) to promote the expansion of trade through the harmonious development of the economic relations between the Parties;
(c) to gradually eliminate difficulties and restrictions on trade between the Parties so as to improve the efficiency and competitiveness of their respective sectors;
(d) to establish a framework of transparent and predictable rules to facilitate trade between the Parties; and
(e) to create an environment conducive to broadening and supplementing the scope of this Agreement to include trade in services and bilateral investment.
Article 1.3. Relation to other Agreements
Nothing in this Agreement shall derogate from the existing rights and obligations of a Party under the WTO Agreement or any other multilateral or bilateral agreement to which it is a party. In the event of any inconsistency between this Agreement and any other agreement to which the Parties are party, the Parties shall immediately consult with each other within the Joint Committee with a view to finding a mutually satisfactory solution, taking into consideration general principles of public international law.
Article 1.4. Customs Unions and Free Trade Areas
Nothing in this Agreement shall preclude the maintenance or establishment of customs unions, free trade areas or other arrangements between either of the Parties and third countries, insofar as they do not alter the rights and obligations provided for in this Agreement.
Chapter 2. General Definitions
Article 2.1. General Definitions
For the purposes of this Agreement, unless otherwise specified:
(a) Agreement means the Free Trade Agreement between the Government of Malaysia and the Government of the Republic of Turkey;
(b) Agreement on Customs Valuation means the Agreement on Implementation of Article VII of the GATT 1994, contained in Annex 1A to the WTO Agreement;
(c) chapters, headings and subheadings means the chapters (two-digit codes), headings (four-digit codes) and the sub-headings (six-digit codes) used in the nomenclature which makes up the Harmonized Commodity Description and Coding System, referred to in this Chapter as "the Harmonized System" or "HS";
(d) customs duty includes any duty or charge of any kind imposed on, or in connection with, the importation of a good, including any form of surtax or surcharge imposed on, or in connection with, such importation. A customs duty does not include any:
(i) charges equivalent to an internal tax imposed consistently with Article III of GATT 1994;
(ii) duties imposed consistently with Chapter 8 (Trade Remedies);
(iii) fees or other charges imposed consistently with Article 3.6 (Administrative Fees and Charges);
(e) Customs Authority means the authority that, according to the legislation of each Party, is responsible for the administration and enforcement of its customs laws:
(i) in the case of Malaysia, the Royal Malaysian Customs Department, or its successor; and
(ii) in the case of Turkey, the Ministry of Customs and Trade, or its successor;
(f) days means calendar days, including weekends and holidays;
(g) GATT 1994 means the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement; (h) goods means both materials and products;
(i) Harmonized System (HS) means the Harmonized Commodity Description and Coding System governed by the International Convention on the Harmonized Commodity Description and Coding System, done at Brussels on 14 June 1983, including its General Rules of Interpretation, Section Notes, and Chapter Notes, and their amendments, as adopted and implemented by the Parties in their respective tariff laws;
(j) Joint Economic and Trade Council means the Joint Economic and Trade Council established under Article 11.1 (Joint Economic and Trade Council);
(k) Joint Committee means the Joint Committee established under Article 11.4 (Joint Committee);
(l) measure means any measure by a Party, whether in the form of a law, regulation, rule, procedure, practice, decision, administrative action or any other form;
(m) originating goods means the goods that qualify as originating in accordance with Chapter 4 (Rules of Origin);
(n) person means both natural and legal persons;
(o) publish includes publication in written form or on the internet;
(p) territory 1 means:
(i) with respect to Malaysia,
(AA) the territories of the Federation of Malaysia;
(BB) the territorial waters of Malaysia and the seabed and subsoil of the territorial waters, and the air space above such areas over which Malaysia has sovereignty; and
(CC) any area extending beyond the limits of the territorial waters of Malaysia, and the seabed and subsoil of any such area, which has been or may hereafter be designated under the laws of Malaysia and in accordance with international law as an area over which Malaysia has sovereign rights or jurisdiction for the purposes of exploring and exploiting the natural resources, whether living or non-living;
(ii) with respect to Turkey, the land territory, internal waters, the territorial sea and the airspace above them, as well as the maritime areas beyond the territorial sea over which it has jurisdiction or sovereign rights for the purpose of exploration, exploitation and preservation of natural resources, pursuant to international law;
(q) WTO means the World Trade Organization; and 1 Nothing in this Agreement, nor any cooperation, act or activity carried out in pursuant to this Agreement shall prejudice the political and legal position of the Parties with regard to any unsettled dispute concerning sovereignty or other rights over the territory and jurisdiction areas.
(r) WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on 15 April 1994.
Chapter 3. Trade In Goods
Article 3.1. Scope
Except as otherwise provided, this Chapter applies to trade in goods between the Parties.
Article 3.2. National Treatment
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 to this end, Article III of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
Article 3.3. Reduction or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, each Party shall reduce or eliminate its customs duties on originating goods of the other Party in accordance with its Tariff Schedule set out in Annex 3-1.
2. Except as otherwise provided in this Agreement, neither Party may increase any existing customs duty or adopt any customs duty on an originating good of the other Party covered by this Agreement.
3. If, at any time a Party reduces its applied most-favoured-nation (hereinafter referred to as "MFN") customs duty rate after the entry into force of this Agreement, that duty rate shall apply as regards trade in goods covered by this Chapter, as long as it is lower than the customs duty rate calculated in accordance with the Party's Tariff Schedule in Annex 3-1.
4. On the request of either Party, the Joint Committee shall be convened to consider accelerating the reduction or elimination of customs duties set out in their respective Tariff Schedules in Annex 3-1. Following the decision of the Joint Committee, each Party shall give effect to such acceleration in accordance with Article 14.5 (Amendments).
5. The Parties shall not introduce new or increase existing customs duties and charges having equivalent effect on exports from the date of entry into force of this Agreement. If a Party enters into any agreement with a non-Party where commitments are more favourable in terms of liberalization of the customs duties and charges having equivalent effect on exports than that accorded under this Agreement, it shall without delay apply the same favourable treatment to the other Party.
Article 3.4. Classification of Goods
For the purposes of this Agreement, the classification of goods in trade between the Parties shall be in conformity with the Harmonized System (HS).
Article 3.5. Customs Valuation
For the purposes of determining the customs value of goods traded between the Parties, the Agreement on Customs Valuation, as may be amended shall, mutatis mutandis, be incorporated into and made part of this Agreement.
Article 3.6. Administrative Fees and Charges
Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994 and its interpretative notes, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charge applied consistently with Article III:2 of GATT 1994, and anti-dumping duty, countervailing duty and safeguard duty) imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
Article 3.7. Non-tariff Measures
1. Except in accordance with Article XI of GATT 1994 or as otherwise provided in this Agreement, neither Party shall adopt or maintain any prohibition or restriction other than duties, taxes or other charges on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party.
2. Each Party shall ensure the transparency of its non-tariff measures permitted under paragraph 1 and that they are not constituted, adopted or applied with a view to or with the effect of creating unnecessary restrictions to trade between the Parties.
Article 3.8. Sub-committee on Trade In Goods
1. The Parties hereby establish a Sub-Committee on Trade in Goods, comprising of officials of the Parties. 2. For the purposes of effective implementation and operation of this Chapter, the functions of the Sub-Committee on Trade in Goods shall be:
(a) reviewing and monitoring the implementation and operation of this Chapter;
(b) discussing any issues related to this Chapter;
(c) reporting the findings and the outcome of discussions to the Joint Committee;
(d) promoting trade in goods between the Parties, including through consultations on accelerating tariff elimination under this Agreement and other issues as appropriate;
(e) addressing barriers to trade in goods between the Parties, especially those related to the application of non-tariff measures, and, if appropriate, referring such matters to the Joint Committee for its consideration; and
(f) carrying out other functions as may be delegated by the Joint Committee in accordance with Article 11.4 (Joint Committee).
3. The Sub-Committee on Trade in Goods shall meet at a venue and time, to be agreed by the Parties.
Chapter 4. Rules of Origin
Article 4.1. Definitions
For the purposes of this Chapter:
(a) aquaculture means the farming of aquatic organisms including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production such as regular stocking, feeding, or protection from predators;
(b) competent authorities means the Ministry of Customs and Trade for Turkey and the Ministry of International Trade and Industry for Malaysia;
(c) consignment means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;
(d) customs value means the value determined in accordance with Agreement on Customs Valuation;
(e) ex-works price means the price paid for the product ex-works to the manufacturer in Turkey or in Malaysia in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the product obtained is exported;
(f) generally accepted accounting principles (GAAP) means the recognised consensus or substantial authoritative support in a Party, with respect to the recording of revenues, expenses, costs, assets and liabilities; the disclosure of information; and the preparation of financial statements. These standards may encompass broad guidelines of general application as well as detailed standards, practices and procedures;
(g) manufacture means any kind of working or processing including assembly or specific operations;
(h) material means any matter or substance including raw materials, ingredients, parts, and components used or consumed in the production of goods or physically incorporated into goods subjected to a process in the production of other goods;
(i) non-originating good or non-originating material means a good or material which does not qualify as originating under this Chapter;
(j) originating good or originating material means a good or material that qualify as originating under this Chapter;
(k) packing materials or containers for transportation means goods used to protect a good during its transportation, different from those containers or materials used for its retail sale;
(l) product means the product being manufactured, even if it is intended for later use in another manufacturing operation;
(m) production means methods of obtaining goods including growing/planting, mining, harvesting, farming, raising, breeding, extracting, gathering, collecting, capturing, fishing, trapping, hunting, aquaculture, manufacturing, producing, processing or assembling a good;
(n) value of materials means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the non-originating materials in Turkey or in Malaysia; and
(o) value of originating materials means the customs value at the time of importation of the originating materials used, if they are imported, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the originating materials in Turkey or in Malaysia. DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"
Article 4.2. Originating Products
For the purpose of implementing this Agreement, the following products shall be considered as originating in a Party: (a) products wholly obtained in that Party within the meaning of Article 4.4 (Wholly Obtained Products); and
(b) products produced in that Party incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in that Party within the meaning of Article 4.5 (Sufficiently Worked or Processed Products).
Article 4.3. Cumulation of Origin
1. Without prejudice to the provisions of Article 4.2 (Originating Products), materials originating in a Party shall be considered as materials originating in the other Party when incorporated into a product there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond the operations referred to in Article 4.6 (Insufficient/Minimal Working or Processing).
2. Notwithstanding paragraph 1, materials falling under HS Chapters 25 to 97 originating in the European Union shall be considered as materials originating in Turkey or Malaysia when further processed or incorporated into a product obtained there.
3. In order for the products referred to in paragraph 2 to acquire originating status, it shall not be necessary that the materials have undergone sufficient working or processing, provided that:
(a) the working or processing of the materials carried out in Turkey or Malaysia goes beyond the operations referred to in Article 4.6 (Insufficient/Minimal Working or Processing);
(b) the materials were originating in the European Union, in application of rules of origin identical to those applicable if the said materials were exported directly to Turkey or Malaysia; and
(c) Turkey, Malaysia and the European Union have arrangements which allow for adequate administrative cooperation procedures ensuring full implementation of this cumulation mechanism as well as of Articles on certification and on verification of origin of the products.
4. The cumulation established in paragraphs 2 and 3 shall be applied provided that preferential trade agreements in accordance with Article XXIV of GATT 1994 between Turkey, Malaysia and the European Union, respectively, are in force.
5. Notwithstanding paragraph 1, materials falling under HS Chapters 25 to 97 originating in a member of the Association of Southeast Asian Nations (hereinafter referred to as "ASEAN") shall be considered as materials originating in Turkey or Malaysia when further processed or incorporated into a product obtained there.
6. In order for the products referred to in paragraph 5 to acquire originating status, it shall not be necessary that the materials have undergone sufficient working or processing, provided that:
(a) the working or processing of the materials carried out in Turkey or Malaysia goes beyond the operations referred to in Article 4.6 (Insufficient/Minimal Working or Processing);
(b) the materials were originating in a member of ASEAN, in application of rules of origin identical to those applicable if the said materials were exported directly to Turkey or Malaysia; and
(c) Turkey, Malaysia and the relevant member of ASEAN have arrangements which allow for adequate administrative cooperation procedures ensuring full implementation of this cumulation mechanism as well as of Articles on certification and on verification of origin of the products.
7. The cumulation established in paragraphs 5 and 6 shall be applied provided that preferential trade agreements in accordance with Article XXIV of GATT 1994 between Turkey, Malaysia and the relevant member of ASEAN, respectively, are in force.
Article 4.4. Wholly Obtained Products
1. The following shall be considered as wholly obtained in Turkey or in Malaysia:
(a) minerals and other naturally occurring substances, not included in subparagraphs (b) to (e), extracted or taken from its soil, water, seabed or beneath the seabed of a Party;
(b) plant and plant goods, including fruits, flowers, vegetables, trees, seaweed, fungi and live plants, grown, cultivated, planted, harvested, picked, or gathered in the territory of a Party;
(c) live animals born and raised in the territory of a Party;
(d) products from live animals raised there; (e) goods obtained from hunting, trapping, fishing, farming, cultivating, planting, growing, aquaculture, gathering, or capturing in the territory of a Party;
(f) products of sea fishing and other products taken from the sea including shellfish and other marine life or marine goods outside the territorial waters of Turkey or of Malaysia by their vessels;
(g) goods obtained, processed or produced on board their factory ships exclusively from products referred to in subparagraph (f);
(h) used articles collected there which can no longer perform their original purpose nor are capable of being restored or repaired and are fit only for the recovery of raw materials;
(i) waste, scrap or used goods collected in the territory of a Party which can no longer perform their original purpose nor are capable of being restored or repaired and are fit only for the recovery of raw materials;
(j) goods taken from the waters, seabed or beneath the seabed outside the territorial waters of that Party, provided that Party has the rights to exploit such waters, seabed and beneath the seabed in accordance with international law; and
(k) goods produced in the territory of a Party solely from goods referred to in subparagraphs (a) to (j) or from their derivatives, at any stage of production.
2. The terms "their vessels" and "their factory ships" in subparagraphs 1(f) and (g) shall apply only to vessels and factory ships:
(a) which are registered in Turkey or in Malaysia;
(b) which sail under the flag of Turkey or of Malaysia;
(c) which meet one of the following conditions: (i) they are at least 50% owned by nationals of Turkey or of Malaysia; or (ii) they are owned by companies:
(AA) which have their head office and their main place of business in Turkey or in Malaysia; and
(BB) which are at least 50% owned by Turkey or by Malaysia, by public entities or nationals of one of those Parties.
Article 4.5. Sufficiently Worked or Processed Products
1. For the purposes of subparagraph (b) of Article 4.2 (Originating Products), products which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the list in Annex 4-2 are fulfilled. The conditions referred to above indicate, for all products covered by this Agreement, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials. It follows that if a product which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.
2. By way of derogation from paragraph 1 and subject to paragraphs 3 and 4, non-originating materials which, according to the conditions set out in the list in Annex 4-2 are not to be used in the manufacture of a given product may nevertheless be used, provided that their total value or net weight assessed for the product does not exceed:
(a) 10% of the weight of the product for products falling under Chapter 2 and within Chapters 4 to 24 of the Harmonized System, other than processed fishery products of Chapter 16;
(b) 10% of the ex-works price of the product for other products, except for products falling within Chapters 50 to 63 of the Harmonized System, for which the tolerances mentioned in Notes 6 and 7 of Annex 4-1, shall apply.
3. Paragraph 2 shall not allow to exceed any of the percentages for the maximum content of non-originating materials as specified in the rules laid down in the list in Annex 4-2. 4. Paragraphs 2 and 3 shall not apply to products wholly obtained in a Party within the meaning of Article 4.4 (Wholly Obtained Products). However, without prejudice to Article 4.6 (Insufficient/Minimal Working or Processing) and paragraph 2 of Article 4.7 (Unit of Qualification), the tolerance provided for in those paragraphs shall nevertheless apply to the sum of all the materials which are used in the manufacture of a product and for which the rule laid down in the list in Annex 4-2 for that product requires that such materials be wholly obtained.
Article 4.6. Insufficient/minimal Working or Processing
1. Without prejudice to paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 4.5 (Sufficiently Worked or Processed Products) are satisfied:
(a) preserving operations to ensure that the products remain in good condition during transport and storage;
(b) breaking-up and assembly of packages; change of packaging or presenting products for sale;
(c) washing, cleaning; removal of dust, oxide, oil, paint or other coverings;
(d) simple painting and polishing operations;
(e) sharpening, slitting, simple coiling and uncoiling, bending, simple grinding or simple cutting;
(f) sifting, screening, sorting, classifying, grading, matching (including the making-up of sets of articles);
(g) ironing or pressing of textiles;
(h) husking, partial or total bleaching, polishing, and glazing of cereals and rice; (i) operations to colour or flavour sugar or form sugar lumps; partial or total milling of crystal sugar;
(j) peeling, stoning and shelling of fruits, nuts and vegetables;
(k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
(l) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;
(m) simple mixing of products, whether or not of different kinds; mixing of sugar with any material;
(n) simple addition of water or dilution or dehydration or denaturation of products;
(o) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;
(p) slaughter of animals; and
(q) a combination of two or more operations specified in subparagraphs (a) to (p).
2. All operations carried out either in Turkey or in Malaysia on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1. 3. For the purposes of paragraph 1, operations shall be considered simple when neither special skills nor machines, apparatus or tools especially produced or installed for those operations are required for their performance.
Article 4.7. Unit of Qualification
1. The unit of qualification for the application of the provisions of this Chapter shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonized System. It follows that:
(a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonized System in a single heading, the whole constitutes the unit of qualification;
(b) when a consignment consists of a number of identical products classified under the same heading of the Harmonized System, each product must be taken individually when applying the provisions of this Chapter.
2. Where, under General Rule 5 of the Harmonized System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin.
Article 4.8. Accessories, Spare Parts and Tools
1. Accessories, spare parts, tools and instructional or other information materials delivered with a good that form part of the good's standard accessories, spare parts, tools and instructional or other information materials shall be regarded as a part of the good, and shall be disregarded in determining whether or not all the non-originating materials used in the production of the originating goods undergo the applicable change in tariff classification provided that:
(a) the accessories, spare parts, tools and instructional or other information materials are classified with and not invoiced separately from the good; and
(b) the quantities and value of the accessories, spare parts, tools and instructional or other information materials are customary for the good.
2. The value of packages and packing materials for retail sale, shall be taken into account in determining the origin of that good as originating or non-originating, as the case may be, provided that the packages and packing materials are considered to be forming a whole with the good.
3. If a good is subject to the change in tariff classification criterion provided in Annex 4-2, packages and packing materials classified together with the packaged good, shall not be taken into account in determining origin.
4. Packing materials and containers used exclusively for the transportation of a good shall not be taken into account in determining the origin of such goods.
Article 4.9. Sets
Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15% of the ex-works price of the set.
Article 4.10. Neutral Elements
In order to determine whether a product originates, it shall not be necessary to determine the origin of the following, which might be used in its production and not physically incorporated into the good, which includes the following:
(a) energy, fuel, catalysts and solvents;
(b) plant and equipment;
(c) machines, tools, dies and moulds;
(d) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings;
(e) gloves, glasses, footwear, clothing, safety equipment and supplies;
(f) equipment, devices and supplies used for testing or inspecting goods; and
(g) goods which do not enter and which are not intended to enter into the final composition of the product. TERRITORIAL REQUIREMENTS
Article 4.11. Principle of Territoriality
1. Except as provided for in Article 4.3 (Cumulation of Origin), the conditions set out in Section 4-B (Definition of the Concept of "Originating Products") relating to the acquisition of originating status must be fulfilled without interruption in a Party.
2. If originating goods exported from a Party to a non-Party return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:
(a) the returning goods are the same as those exported; and
(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that non-Party or while being exported.
Article 4.12. Direct Consignment
1. The products declared for importation in a Party shall be the same products as exported from the other Party in which they are considered to originate. They shall not have been altered, transformed in any way or subjected to operations other than operations to preserve them in good condition, prior to being declared for import. Storage of products or consignments and splitting of consignments may take place where carried out under the responsibility of the exporter or of a subsequent holder of the goods and the products remain under customs supervision in the country(ies) of transit.
2. Compliance with paragraph 1 shall be considered as satisfied unless the customs authorities have reason to believe the contrary; in such cases, the customs authorities may request the declarant to provide evidence of compliance, which may be given by any means, including contractual transport documents such as bills of lading or factual or concrete evidence based on marking or numbering of packages or any evidence related to the goods themselves.
Article 4.13. Exhibitions
1. Originating products sent for exhibition in a third country and sold after the exhibition for importation in Turkey or in Malaysia shall benefit on importation from the provisions of the Agreement, provided it is shown to the satisfaction of the customs authorities that:
(a) an exporter has consigned these products from Turkey or from Malaysia to the country in which the exhibition is held and has exhibited them there;
(b) the products have been sold or otherwise disposed of by that exporter to a person in Turkey or in Malaysia;
(c) the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition; and
(d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.
2. A proof of origin must be issued or made out in accordance with the provisions of Section 4-E (Proof of Origin) and submitted to the customs authorities of the importing Party in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the conditions under which they have been exhibited may be required.
3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display, which is not organized for private purposes in shops or business premises with a view to the sale of foreign products, and during which the products remain under customs control. DRAWBACK OR EXEMPTION
Article 4.14. Drawback of, or Exemption from, Customs Duties
After two years from the entry into force of this Agreement, upon the request of either Party, the Joint Committee shall review the operation of duty drawback and inward processing schemes of the Parties. The Joint Committee may establish the criteria to review duty drawback and inward processing issues of the Parties and may consider prohibiting the application of duty drawback. PROOF OF ORIGIN
Article 4.15. General Requirements
1. Products originating in Turkey shall, on importation into Malaysia and products originating in Malaysia shall, on importation into Turkey, benefit from this Agreement upon submission of either: (a) a Certificate of Origin, a specimen of which appears in Annex 4-3; or (b) in the cases specified in paragraph 1 of Article 4.21 (Conditions for Invoice Declaration), a declaration, the text of which appears in Annex 4-4, given by the exporter on an invoice, a delivery note or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified (hereinafter referred to as the "invoice declaration").
2. Notwithstanding paragraph 1, originating products within the meaning of this Chapter shall, in the cases specified in Article 4.27 (Exemption from Proof of Origin), benefit from this Agreement without it being necessary to submit any of the documents referred to above.
Article 4.16. Procedure for the Issuance of Certificate of Origin
1. A Certificate of Origin shall be issued by the competent authorities of the exporting Party on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorized representative.
2. For this purpose, the exporter or his authorized representative shall fill out Certificate of Origin specimen of which appears in Annex 4-3. The form shall be completed in English and in accordance with the provisions of the domestic law of the exporting Party. If it is handwritten, it shall be completed clearly and legibly in ink and printed characters. In that case, neither erasures nor alterations shall be allowed on the form. The description of the products must be given in the box reserved for this purpose without leaving any blank lines. Where the box is not completely filled, a horizontal line must be drawn below the last line of the description, the empty space being crossed through.
3. The exporter applying for the issue of Certificate of Origin shall be prepared to submit at any time, at the request of the competent authorities of the exporting Party where the Certificate of Origin is issued, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Chapter.
4. A Certificate of Origin shall be issued by the competent authorities of Turkey or of Malaysia if the products concerned can be considered as products originating in Turkey or in Malaysia and fulfil the other requirements of this Chapter.
5. The competent authorities issuing Certificate of Origin shall take any steps necessary to verify the originating status of the products and the fulfilment of the other requirements of this Chapter. For this purpose, the Customs Authorities shall, in accordance with its domestic legislation, have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate.
6. The issuing competent authorities shall also ensure that the form referred to in paragraph 2 is duly completed. In particular, they shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions.
7. The date of issue of Certificate of Origin shall be indicated in Box 11 of the certificate. 8. A Certificate of Origin shall be issued by the competent authorities and made available to the exporter as soon as actual exportation has been effected or made known.
Article 4.17. Certificate of Origin Issued Retrospectively
1. Notwithstanding paragraph 8 of Article 4.16 (Procedure for the Issuance of Certificate of Origin), a Certificate of Origin may exceptionally be issued after exportation but not later than 12 months from the date of exportation of the products to which it relates if:
(a) it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances; or (b) it is demonstrated to the satisfaction of the customs authorities or other competent authorities that a Certificate of Origin was issued, but was not accepted at importation for technical reasons.
2. For the implementation of paragraph 1, the exporter must indicate in his application the place and date of exportation of the products to which the Certificate of Origin relates, and state the reasons for his request.
3. The competent authorities may issue a Certificate of Origin retrospectively only after verifying that the information supplied in the exporter's application agrees with that in the corresponding file. 4. Certificate of Origin issued retrospectively must bear with the words "ISSUED RETROSPECTIVELY". The endorsement shall be inserted in the 'Remarks' box of the Certificate of Origin.
Article 4.18. Issuance of a Duplicate Certificate of Origin
1. In the event of theft, loss or destruction of a Certificate of Origin, the exporter may apply to the competent authorities which issued it for a duplicate to be made out on the basis of the export documents in their possession.
2. The duplicate Certificate of Origin will indicate the date of issuance of the original Certificate of Origin and shall take effect as from the original date.
Article 4.19. Issuance of Certificate of Origin on the Basis of a Proof of Origin Issued or Made Out Previously
When originating products are placed under the control of a customs office in Turkey or Malaysia, the original proof of origin may be replaced by one or more proof of origin for the purpose of sending all or some of these products elsewhere within a Party. The replacement proof(s) of origin shall be issued by the customs office in Turkey under whose control the products are placed or competent authorities in Malaysia.
Article 4.20. Identical and Interchangeable Materials
The determination of whether identical and interchangeable materials are originating materials shall be made either by physical segregation of each of the materials, or by the use of generally accepted accounting principles of stock control, or inventory management applicable in the exporting Party.
Article 4.21. Conditions for Invoice Declaration
1. An invoice declaration as referred to in subparagraph 1(b) of Article 4.15 (General Requirements) may be made out: (a) by an approved exporter within the meaning of Article 4.22 (Approved Exporter); or (b) by any exporter for any consignment consisting of one or more packages containing originating products whose total value does not exceed USD10,000.
2. An invoice declaration may be made out if the products concerned can be considered as products originating in Turkey or in Malaysia and fulfil the other requirements of this Chapter.
3. The exporter making out an invoice declaration shall be prepared to submit at any time, at the request of the customs authorities or other competent authorities of the exporting Party, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Chapter.
4. An invoice declaration shall be made out by the exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, the declaration in English, the text of which appears in Annex 4-4, and in accordance with the provisions of the domestic law of the exporting Party. If they are handwritten, they shall be completed clearly and legibly in ink in printed characters. In that case, neither erasures nor alterations shall be allowed on these forms.
5. Invoice declarations shall bear the original signature of the exporter in manuscript. However, an approved exporter within the meaning of Article 4.22 (Approved Exporter) shall not be required to sign such declarations provided that he gives the customs authorities or other competent authorities of the exporting Party a written undertaking that he accepts full responsibility for any invoice declaration which identifies him as if it had been signed in manuscript by him. 6. An invoice declaration may be made out by the exporter when the products to which it relates are exported, or after exportation on condition that it is presented in the importing Party no longer than 12 months after the importation of the products to which it relates.
Article 4.22. Approved Exporter
1. The competent authorities of the exporting Party may authorize any exporter as "approved exporter" who makes frequent shipments of products under this Agreement to make out invoice declarations irrespective of the value of the products concerned. An exporter seeking such authorisation must offer to the satisfaction of the competent authorities evidence of the originating status of the products as well as the fulfilment of the other requirements of this Chapter.
2. The competent authorities may grant the status of approved exporter subject to any conditions which they consider appropriate.
3. The competent authorities shall grant to the approved exporter a customs authorisation number or reference number which shall appear on the invoice declaration.
4. The competent authorities shall monitor the use of the authorization by the approved exporter.
5. The competent authorities may withdraw the authorization at any time. They shall do so where the approved exporter no longer offers the guarantees referred to in paragraph 1, does not fulfil the conditions referred to in paragraph 2 or otherwise makes an incorrect use of the authorization.
6. The competent authorities responsible for the implementation of the verification of proof of origin within the meaning of Article 4.33 (Verification of Proofs of Origin) may inform each other on the changes in granting authorizations to the approved exporters and may also mutually exchange the updated lists.
Article 4.23. Third Party Invoice
The competent authorities of the importing Party may accept Certificate of Origin or invoice declaration in cases where the invoice is issued either by a company located in a third country or by an exporter for the account of that company, provided that the goods meet the requirements of this Chapter.
Article 4.24. Validity of Proof of Origin
1. A proof of origin shall be valid for 12 months from the date of issue in the exporting Party, and must be submitted within the said period to the customs authorities of the importing Party.
2. Proofs of origin which are submitted to the customs authorities of the importing Party after the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit these documents by the final date set is due to exceptional circumstances. 3. In other cases of late presentation, the customs authorities of the importing Party may accept the proofs of origin where the products have been presented to customs before the said final date.
Article 4.25. Submission of Proof of Origin
Proofs of origin shall be submitted to the customs authorities of the importing Party in accordance with the procedures applicable in that country. The said authorities may require a translation of a proof of origin and may also require the import declaration to be accompanied by a statement from the importer to the effect that the products meet the requirements of this Chapter.
Article 4.26. Importation by Instalments
Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing Party, dismantled or non-assembled products within the meaning of General Rule 2(a) of the Harmonized System falling within Sections XVI and XVII or heading Nos. 7308 and 9406 of the Harmonized System are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.
Article 4.27. Exemptions from Proof of Origin
1. Products sent as small packages from private persons to private persons from Malaysia to Turkey or forming part of travellers' personal luggage travelling from Malaysia to Turkey shall be admitted as originating products without requiring the submission of a proof of origin, provided that such products are not imported by way of trade and have been declared as meeting the requirements of this Chapter and where there is no doubt as to the veracity of such a declaration. In the case of products sent by post from Malaysia to Turkey, this declaration can be made on the customs declaration CN22/CN23 or on a sheet of paper annexed to that document.
2. Imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families from Malaysia to Turkey shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is in view.
3. Furthermore, the total value of these products referred to paragraphs 1 and 2 shall not exceed EUR500 in the case of small packages or EUR1,200 in the case of products forming part of travellers' personal luggage.
4. In the case of consignments of goods originating in Turkey and exported to Malaysia and not exceeding USD200 FOB, the requirement of a proof of origin may be waived, provided that the importation does not form part of one or more importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the submission of proof of origin.
Article 4.28. Supporting Documents
The documents referred to in paragraph 3 of Article 4.16 (Procedure for the Issuance of Certificate of Origin) and paragraph 3 of Article 4.21 (Conditions for Invoice Declaration) used for the purpose of proving that products covered by a Certificate of Origin or an invoice declaration can be considered as products originating in Turkey or in Malaysia and fulfil the other requirements of this Chapter may consist, inter alia, of the following:
(a) direct evidence of the processes carried out by the exporter or supplier to obtain the goods concerned, contained for example in his accounts or internal bookkeeping;
(b) documents proving the originating status of materials used, issued or made out in Turkey or in Malaysia;
(c) documents proving the working or processing of materials in Turkey or Malaysia, issued or made out in Turkey or in Malaysia; and/or
(d) Certificate of Origin or invoice declarations proving the originating status of materials used, issued or made out in Turkey or in Malaysia in accordance with this Chapter.
Article 4.29. Preservation of Proof of Origin and Supporting Documents
1. The exporter applying for the issue of a Certificate of Origin shall keep for at least three years the documents referred to in paragraph 3 of Article 4.16 (Procedure for the Issuance of Certificate of Origin).
2. The exporter making out an invoice declaration shall keep for at least three years a copy of this invoice declaration as well as the documents referred to paragraph 3 of Article 4.21 (Conditions for Invoice Declaration).
3. The competent authorities of the importing Party shall keep for at least three years the Certificate of Origins and the invoice declarations submitted to them.
Article 4.30. Discrepancies and Formal Errors
1. The discovery of slight discrepancies between the statements made in the proof of origin and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the products may not ipso facto render the proof of origin null and void if it is duly established that this document does correspond to the products submitted.
2. Obvious formal errors such as typing errors on a proof of origin should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.
Article 4.31. Amounts Expressed In Usd or Eur
1. For the application of the provisions of subparagraph 1(b) of Article 4.21 (Conditions for Invoice Declaration) and Article 4.27 (Exemption from Proof of Origin) in cases where products are invoiced in a currency other than USD or EUR, amounts in the national currencies of Turkey and of Malaysia equivalent to the amounts expressed in USD or EUR shall be fixed annually by each of the countries concerned.
2. A consignment shall benefit from the provisions of subparagraph 1(b) of Article 4.21 (Conditions for Invoice Declaration) or Article 4.27 (Exemption from Proof of Origin) by reference to the currency in which the invoice is drawn up, according to the amount fixed by the country concerned.
3. The amounts to be used in any given national currency shall be the equivalent in that currency of the amounts expressed in USD or EUR as at the first working day of October and shall be applied from 1 January the following year. The Parties shall communicate the amounts to each other by 15 October.
4. Turkey or Malaysia may round up or down the amount resulting from the conversion into its national currency of an amount expressed in USD or EUR. The rounded-off amount may not differ from the amount resulting from the conversion by more than 5%. Turkey or Malaysia may retain unchanged its national currency equivalent of an amount expressed in USD or EUR if, at the time of the annual adjustment provided for in paragraph 3, the conversion of that amount, prior to any rounding-off, results in an increase of less than 15% in the national currency equivalent. The national currency equivalent may be retained unchanged if the conversion would result in a decrease in that equivalent value.
5. The amounts expressed in USD or EUR shall be reviewed by the Joint Committee at the request of Turkey or of Malaysia. When carrying out this review, the Joint Committee shall consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in USD or EUR. ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION
Article 4.32. Mutual Assistance
1. Each Party shall inform the other Party of the names and addresses of its respective Competent Authorities to issue the Certificate of Origin and verify the proofs of origin, and shall provide the official seals used by the said authorities. Any change in names, addresses, specimen signatures or official seals shall be promptly informed in the same manner.
2. In order to ensure the proper application of this Chapter, Turkey and Malaysia shall assist each other, through the competent customs administrations and relevant competent and duly authorized bodies, in checking the authenticity of the Certificate of Origin or the invoice declarations and the correctness of the information given in these documents.
Article 4.33. Verification of Proof of Origin
1. The Competent Authority of the importing Party may verify the eligibility of a good for preferential tariff treatment in accordance with its domestic laws, regulations or administrative practices.
2. If the Competent Authority of the importing Party has reasonable doubts as to the authenticity or accuracy of the information included in the Certificate of Origin or other documentary evidence, it may:
(a) institute retroactive checking measures to establish the validity of the Certificate of Origin or other documentary evidence of origin;
(b) request information from the relevant importer of a good for which preferential tariff treatment was claimed; or
(c) issue written requests to the Issuing Authority of the exporting Party for information from the exporter or producer. 3. The Competent Authority of the exporting Party shall provide the information requested under paragraph 2 within a period of 90 days from the date the written request is made.
4. The reply of the Competent Authority of the exporting Party must indicate clearly whether the documents are authentic and whether the products concerned can be considered as products originating in Turkey or Malaysia and fulfil the other requirements of this Chapter.
5. If the reply does not have the necessary details in paragraph 4, the Competent Authority of the importing Party shall provide written advice as to whether the goods are eligible for preferential tariff treatment to the exporting Party within 90 days from the receipt of reply of the exporting Party. The exporting Party shall provide a reply within 90 days from the date of the written advice to the importing Party to make the final decision.
6. If there is no reply from the Competent Authority of the exporting Party within 90 days under paragraph 3 or if there is no reply from the Competent Authority of the exporting Party within 180 days according to paragraph 5 or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the products, the Competent Authority of the importing Party shall, except in exceptional circumstances, refuse entitlement to the preferences.
Article 4.34. Suspension of Preferential Tariff Treatment
1. The Customs Authorities of the importing Party may suspend preferential tariff treatment to goods that are the subject of an origin verification action under this Chapter for the duration of that action or any part thereof.
2. The Customs Authorities of the importing Party may release the goods to the importer subject to any administrative measures deemed necessary, provided that they are not held to be subject to import prohibition or restriction and there is no suspicion of fraud.
3. In the event that a determination is made by the Competent Authority of the importing Party that the goods qualify as the originating goods of the exporting Party, the preferential tariff treatment shall be implemented.
Article 4.35. Penalties
Penalties shall be imposed, in accordance with domestic laws and regulations, on any person who draws up, or causes to be drawn up, a document which contains false information for the purpose of obtaining a preferential treatment for products. FINAL PROVISIONS
Article 4.36. Sub-committee on Rules of Origin
1. A Sub-Committee on Rules of Origin shall be set up under the Joint Committee to assist it in carrying out its duties and to ensure a continuous information and consultations process between experts.
2. The functions of the Sub-Committee on Rules of Origin shall include:
(a) monitoring of the implementation and administration of this Chapter;
(b) discussion of any issues that may arise in the course of implementation;
(c) discussion of any proposed amendments of the rules of origin under this Chapter;
(d) consultation on issues relating to rules of origin and administrative cooperation; and
(e) discussion on any issues that may arise in relation to the verification under Article 4.33 (Verification of Proof of Origin) which cannot be settled between the competent authorities responsible for carrying out the verification.
Article 4.37. Transitional Provisions for Goods In Transit and Storage
Originating goods which are in the process of being transported from the exporting Party to the importing Party, or which are in temporary storage in a bonded area in the importing Party, should be accorded preferential tariff treatment if they are imported into the importing Party on or after the date of entry into force of this Agreement, subject to the submission of a Certificate of Origin issued retrospectively, within 12 months of that date, to the Customs Authority of the importing Party and subject to domestic laws, regulations or administrative practices of the importing Party.
Article 4.38. Review and Appeal
The importing Party shall grant the right of appeal in matters relating to the eligibility for preferential tariff treatment to importers of goods traded or to be traded between the Parties, in accordance with its domestic laws, regulations and administrative practices.
Chapter 5. Customs Procedures and Cooperation
Article 5.1. Objectives
The objectives of this Chapter are to:
(a) ensure predictability, consistency and transparency in the application of customs laws and regulations of the Parties;
(b) promote efficient, economical administration of customs procedures, and the expeditious clearance of goods;
(c) simplify customs procedures; and (d) promote cooperation between the customs administrations of the Parties.
Article 5.2. Scope
This Chapter applies, in accordance with the Parties' respective laws, regulations and policies, to customs procedures applied to goods traded between the Parties.
Article 5.3. Definitions
For the purposes of this Chapter:
(a) customs law means such laws and regulations administered and enforced by the Customs Authority of each Party concerning the importation, exportation, and transit/transhipment of goods, as they relate to customs duties, charges, and other taxes, or to prohibitions, restrictions, and other similar controls with respect to the movement of controlled items across the boundary of the customs territory of each Party;
(b) customs procedures means the treatment applied by the customs administration of each Party to goods, which are subject to customs law.
Article 5.4. Customs Procedures and Facilitation
1. Each Party shall ensure that its customs procedures and practices are predictable, consistent, transparent, and facilitate trade, including through the expeditious clearance of goods.
2. Customs procedures of the Parties shall, where possible and to the extent permitted by their respective customs laws, conform to the standards and recommended practices of the World Customs Organization.
3. The customs administration of each Party shall review its customs procedures with a view to their simplification to facilitate trade.
Article 5.5. Risk Management
1. The Parties shall administer customs procedures so as to facilitate the clearance of low-risk goods and focus on high-risk goods. To enhance the flow of goods across their borders, the customs administrations shall regularly review these procedures.
2. Where a customs administration deems that the inspection of goods is not necessary to authorise clearance of the goods from customs control, it shall endeavour to provide a single point for the documentary or electronic processing of those goods.
Article 5.6. Advance Rulings
1. Each Party, through its customs administration or other relevant authorities, to the extent permitted by their domestic laws, regulations and administrative determinations, on the application of a person referred in subparagraph 2(a), shall provide in writing advance rulings in respect of the tariff classification.
2. Where available, each Party shall adopt or maintain procedures for advance rulings, which shall:
(a) provide that an importer in its territory may apply for an advance ruling before the importation of goods in question;
(b) require that an applicant for an advance ruling provide a detailed description of the goods and all relevant information needed to process an application for an advance ruling;
(c) provide that its customs administration may, at any time during the course of an evaluation of an application for an advance ruling, request that the applicant provide additional information within a specified period;
(d) provide that any advance ruling be based on the facts and circumstances presented by the applicant, and any other relevant information in the possession of the decision maker; and
(e) provide that an advance ruling be issued to the applicant expeditiously, within the period specified in each Party's domestic laws, regulations or administrative determinations.
3. A Party may reject requests for an advance ruling where the additional information requested by it in accordance with subparagraph 2(c) is not provided within a specified time.
4. Subject to paragraphs 1 and 5 and where available, each Party shall apply an advance ruling to all importations of goods described in that ruling imported into its territory for the period as specified in that Party's domestic laws, regulations or administrative determinations.
5. A Party may modify or revoke an advance ruling where there is a determination that the advance ruling was based on an error of fact or law (including human error), the information provided is false or inaccurate, or if there is a change in:
(a) domestic law;
(b) a material fact; or
(c) the circumstances, on which the ruling is based.
6. Where an importer claims that the treatment accorded to an imported good should be governed by an advance ruling, the customs administration may evaluate whether the facts and circumstances of the importation are consistent with the facts and circumstances upon which an advance ruling was based.
Article 5.7. Use of Automated Systems
1. The customs administrations, where applicable, shall endeavour to have their own system that supports electronic customs transactions.
2. In implementing initiatives, each customs administration shall take into account the relevant standards and best practices recommended by the World Customs Organization, taking into consideration the available infrastructures and capabilities of each Party.
Article 5.8. Customs Cooperation
1. To the extent permitted by their domestic law, the customs administrations of the Parties may, as deemed appropriate, assist each other, in relation to:
(a) the implementation and operation of this Chapter;
(b) developing and implementing customs best practices and risk management techniques;
(c) providing, where possible, prior notice of changes to laws, regulations, and relevant procedures and guidelines that would affect the operation of this Agreement;
(d) simplifying and harmonising customs procedures;
(e) advancing technical skills and the use of technology; and
(f) application of the Agreement on Customs Valuation.
2. Subject to available resources, the customs administrations of the Parties may, as deemed appropriate, explore and undertake cooperation projects, including capacity building programmes to enhance the capability of their customs personnel.
Article 5.9. Transparency
Each Party shall ensure that its customs laws, regulations and general administrative procedures and other requirements, including customs fees and charges, are readily available to all interested parties wherever possible in electronic form.
Article 5.10. Contact Points
Each Party shall designate or maintain one or more contact points to address inquiries by interested persons concerning customs matters.
Article 5.11. Consultation
The customs administrations of the Parties will encourage consultation with each other regarding significant customs issues that affect goods traded between the Parties.
Article 5.12. Confidentiality
1. Nothing in this Chapter shall be construed to require any Party to furnish or allow access to confidential information pursuant to this Chapter the disclosure of which it considers would:
(a) be contrary to the public interest as determined by its legislation;
(b) be contrary to any of its legislation including but not limited to those protecting personal privacy or the financial affairs and accounts of individual customers of financial institutions;
(c) impede law enforcement; or
(d) prejudice legitimate commercial interests, which may include competitive position of particular enterprises, public or private.
2. Where a Party provides information to the other Party in accordance with this Chapter and designates the information as confidential, the Party receiving the information shall maintain the confidentiality of the information, use it only for the purposes specified by the Party providing the information, and not disclose it without the specific written permission of the Party providing the information.
Article 5.13. Review and Appeal
1. Each Party shall ensure that the importers in its territory have access to administrative review within the customs administration that issued the decision subject to review or where applicable, the higher authority supervising the administration and/or judicial review of the determination taken at the final level of administrative review, in accordance with the Party's domestic laws.
2. The decision on appeal shall be given to the appellant and the reasons for such decision shall be provided in writing. 3. The level of institution to carry out administrative review may include any authority in accordance with the Party's domestic laws.
Chapter 6. Sanitary and Phytosanitary Measures
Article 6.1. Objectives
The objectives of this Chapter are:
(a) to facilitate bilateral trade in food, plants, animals and products thereof, while protecting human, animal or plant life or health in the territory of each Party;
(b) to deepen mutual understanding of each Party's regulations and procedures relating to consultations on and implementation of sanitary and phytosanitary measures;
(c) to strengthen cooperation between the Parties' competent authorities that have the responsibility for sanitary and phytosanitary matters; and (d) to provide a means to enhance communication and improve resolution of sanitary and phytosanitary issues.
Article 6.2. Scope and Coverage
This Chapter applies to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties.
Article 6.3. Definitions
For the purposes of this Chapter:
(a) SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement;
(b) the definitions in Annex A of the SPS Agreement are incorporated into and made part of this Chapter, mutatis mutandis; and
(c) the relevant definitions developed by the Codex Alimentarius Commission, World Organisation for Animal Health and the International Plant Protection Convention shall apply to the implementation of this Chapter.