Article 4.5. Temporary Admission and Goods In Transit

1. Each Party shall continue to facilitate the procedures for the temporary admission of goods traded between the Parties in accordance with its laws, regulations and international obligations.
2. Each Party shall continue to facilitate customs clearance of goods in transit from or to the other Party in accordance with paragraph 3 of Article V of the GATT 1994.
3. The Parties shall endeavor to promote, through arrangements such as seminars and courses, the use of A.T.A. carnets in accordance with the international obligations and the facilitation of customs clearance of goods in transit in the Parties or non-Parties.
4. For the purposes of this Article:
(a) the term "A.T.A. carnet" shall have the same meaning as in:
(i) for Japan, the Customs Convention on A.T.A. Carnet for the Temporary Admission of Goods, done at Brussels on December 6, 1961; and
(ii) for Mongolia, the Convention on Temporary Admission, done at Istanbul on June 26, 1990; and
(b) the term "temporary admission" means customs procedures under which certain goods may be brought into a customs territory conditionally, relieved totally or partially from the payment of customs duties. Such goods shall beimported for a specific purposeand shall be intended for reexportationwithin a specified period and without having undergone any change except normal depreciation due to the use made of them.

Article 4.6. Advance Rulings

Where a written application is made in accordance with relevant laws, regulations or procedures adopted or maintained by theimporting Party and the importing Party has no reasonable grounds to deny the issuance, the importing Party shall endeavor to, prior to the importation of the good, issue a written advance ruling on: (a) the tariff classification;
(b) the customs valuation; and
(c) the qualification of the good as an originating good of the exporting Party under the provisions of Chapter 3.

Article 47. Cooperation and Exchange of Information

1. The Parties shall cooperate and exchange information with each other in the field of customs procedures, including combating the trafficking of prohibited goods and the importation and exportation of goods suspected of infringing intellectual property rights.
2. Such cooperation and exchange of information shall be implemented as provided for in the Implementing Agreement.
3. Paragraph 2 of Article 1.8 shall not apply to the exchange of information under this Article.

Article 4.8. Sub-committee on Customs Procedures and Trade Facilitation

1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Sub-Committee on Customs Procedures and Trade Facilitation (hereinafter referred to in this Article as "the Sub- Committee").
2. The functions of the Sub-Committee shall be:
(a) reviewing and monitoring the implementation and operation of this Chapter;
(b) identifying areas, related to this Chapter, to be improved for facilitating trade between the Parties;
(c) reporting the findings of the Sub-Committee to the Joint Committee; and
(d) carrying out other functions as may be delegated by the Joint Committee
3. The composition of the Sub-Committee shall be specified in the Implementing Agreement.
4. The Sub-Committee shall hold meetings at such times and venues or by means, as may be agreed by the Parties.

Chapter 5. Sanitary and Phytosanitary Measures

Article 5.1. Scope

This Chapter shall apply to all sanitary and phytosanitary (hereinafter referred to as "SPS") measures of the Parties under the SPS Agreement, that may, directly or indirectly, affect trade in goods between the Parties. Article 5.2 Reaffirmation of Rights and Obligations The Parties reaffirm their rights and obligations related to SPS measures under the SPS Agreement.

Article 5.3. Harmonization

The Parties shall endeavor to cooperate on the matters related to the harmonization of SPS measures, on as wide a basis as possible, as prescribed under Article 3 of the SPS Agreement. Such cooperation shall be conducted without requiring either Party to change its appropriate level of protection of human, animal or plant life or health that the Party has determined in accordance with Article 5 of the SPS Agreement.

Article 5.4. Equivalence

1. An importing Party shall accept an exporting Party's SPS measures as equivalent, if the exporting Party objectively demonstrates to the importing Party that its measures achieve the importing Party's appropriate level of SPS protection.
2. Each Party shall, upon request of the other Party,enter into consultations with the aim of achievingbilateral arrangements related to recognition of theequivalence of specified SPS measures.

Article 5.5. Enquiry Point

Each Party shall designate an enquiry point to answer all reasonable enquiries from the other Party regarding SPS measures and, where appropriate, to provide the other Party with relevant information.

Article 5.6. Sub-committee on Sanitary and Phytosanitary Measures

1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Sub-Committee on SPS Measures (hereinafter referred to in this Article as "the Sub-Committee"). 2. The functions of the Sub-Committee shall be:
(a) reviewing and monitoring the implementation and operation of this Chapter;
(b) exchanging information on such matters as change or introduction of SPS-related regulations and standards of the Parties and occurrences of SPS incidents in the Areas of the Parties, which may, directly or indirectly, affect trade in goods between the Parties;
(c) undertaking science-based technical consultations to address matters related to harmonization, equivalence, adaptation to regional conditions, and control, inspection and approval procedures as referred to in the SPS Agreement with the objective to achieve mutually acceptable solutions;
(d) discussing technical cooperation between the Parties on SPS measures including capacity building, technical assistance and exchange of experts;
(e) discussing any other issues related to this Chapter;
(f) reporting the findings of the Sub-Committee to the relevant bodies; and
(g) carrying out other functions as may be delegated by the Joint Committee.
3. The Sub-Committee shall be composed of representatives of the Governments of the Parties with appropriate participation of relevant experts.
4. The Sub-Committee shall hold meetings at such times and venues or by means, as may be agreed by the Parties.

Article 5.7. Non-application of Chapter 16

Chapter 16 shall not apply to this Chapter.

Chapter 6. Technical Regulations, Standards and Conformity Assessment Procedures

Article 6.1. Scope

1. This Chapter shall apply to technical regulations, standards and conformity assessment procedures as defined in the TBT Agreement, that may affect trade in goods between the Parties.
2. This Chapter shall not apply to:
(a) purchasing specifications prepared by governmental bodies for production or consumption requirements of such bodies; or
(b) SPS measures as defined in Annex A of the SPS Agreement.

Article 6.2. Objectives

The objectives of this Chapter are to:
(a) increase and facilitate trade between the Parties, through the improvement of the implementation of the TBT Agreement;
(b) ensure that technical regulations, standards and conformity assessment procedures do not create unnecessary obstacles to trade; and
(c) enhance joint cooperation between the Parties.

Article 6.3. Definitions

For the purposes of this Chapter:
(a) the term "TBT Agreement" means the Agreement on Technical Barriers to Trade in Annex 1A to the WTO Agreement; and
(b) the terms and definitions set out in Annex 1 of the TBT Agreement shall apply.

Article 6.4. Reaffirmation of Rights and Obligations

The Parties reaffirm their rights and obligations related to technical regulations, standards and conformity assessment procedures under the TBT Agreement.

Article 6.5. International Standards

1. Each Party shall use relevant international standards and guides or recommendations to the extent provided in paragraph 4 of Article 2 and paragraph 4 of Article 5 of the TBT Agreement, as a basis for its technical regulations and conformity assessment procedures.
2. Each Party shall encourage its national standardizing bodies to cooperate with the relevant national standardizing bodies of the other Party in international standardizing activities. Such cooperation may take place in regional and international standardizing bodies of which they are both members.

Article 6.6. Technical Regulations

1. Upon request of a Party that has an interest in developing a technical regulation similar to a technical regulation of the other Party, such other Party shall provide, to the extent practicable, relevant information, including studies or documents, except for confidential information, on which it has relied in its development.
2. Each Party shall give positive consideration to accepting as equivalent technical regulations of the other Party, even if these regulations differ from its own, provided it is satisfied that these regulations adequately fulfill the objectives of its own regulations.
3. Where a Party does not accept a technical regulation of the other Party as equivalent to its own, it shall, upon request of the other Party, explain the reasons therefor.

Article 6.7. Acceptance of Results of Conformity Assessment Procedures

1. The Parties recognize that a broad range of mechanisms exists to facilitate the acceptance in a Party of the results of conformity assessment procedures conducted in the other Party. Each Party shall, upon request of the other Party, provide information on the range of such mechanisms used in its Area.
2. Each Party shall ensure, whenever possible, that results of the conformity assessment procedures in the other Party are accepted, even when those procedures differ from its own, provided it is satisfied that the procedures offer an assurance of conformity with applicable technical regulations or standards equivalent to its own procedures.
3. Where a Party does not accept the results of a conformity assessment procedure conducted in the other Party, it shall, upon request of the other Party and subject to the laws and regulations of that Party, explain the reasons therefor so that corrective action may be taken by the other Party where appropriate.
4. Each Party shall, whenever possible, accredit, designate or recognize conformity assessment bodies in the other Party on terms no less favorable than those it accords to conformity assessment bodies in its Area. If a Party accredits, designates or recognizes a body assessing conformity with a particular technical regulation or standard in its Area and it refuses to accredit, designate or recognize a body in the other Party assessing conformity with that technical regulation or standard, it shall, upon request, explain the reasons therefor.

Article 6.8. Enquiry Point

Each Party shall designate an enquiry point to answer all reasonable enquiries from the other Party regarding technical regulations, standards and conformity assessment procedures and, where appropriate, to provide the other Party with other relevant information which it considers the other Party should be made aware of.

Article 6.9. Sub-committee on Technical Regulations, Standards and Conformity Assessment Procedures

1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Sub-Committee on Technical Regulations, Standards and Conformity Assessment Procedures (hereinafter referred to in this Article as "the Sub-Committee").
2. The functions of the Sub-Committee shall be:
(a) reviewing and monitoring the implementation and operation of this Chapter;
(b) enhancing joint cooperation in the development and improvement of technical regulations, standards and conformity assessment procedures;
(c) exchanging information on technical regulations, standards and conformity assessment procedures;
(d) undertaking consultations on issues related to technical regulations, standards and conformity assessment procedures;
(e) exchanging information on the work in regional and multilateral fora engaged in activities related to technical regulations, standards and conformity assessment procedures;
(f) discussing technical cooperation between the Parties on matters related to this Chapter;
(g) discussing any issues including those which may cause disputes between the Parties related to this Chapter with the objective of finding mutually acceptable solutions;
(h) reporting the findings of the Sub-Committee to the relevant bodies; and
(i) carrying out other functions as may be delegated by the Joint Committee.
3. The Sub-Committee shall be composed of representatives of the Governments of the Parties.
4. The Sub-Committee shall hold meetings at such times and venues or by means, as may be agreed by the Parties.
5. For the purposes of this Article, the Sub-Committee shall be coordinated by:
(a) for Japan, the Ministry of Foreign Affairs, or its successor; and
(b) for Mongolia, the Ministry of Industry, or its successor.

Article 6.10. Non-application of Chapter 16

Chapter 16 shall not apply to this Chapter.

Chapter 7. Trade In Services

Article 7.1. Scope

1. This Chapter shall apply to measures adopted or maintained by a Party affecting trade in services.
2. This Chapter shall not apply to:
(a) cabotage in maritime transport services;
(b) with respect to air transport services, measures affecting traffic rights, however granted, or measures affecting services directly related to the exercise of traffic rights;
(c) government procurement;
(d) subsidies provided by a Party or a state enterprise, including grants, government- supported loans, guarantees and insurance;
(e) measures pursuant to immigration laws and regulations;
(f) measures affecting natural persons of a Party seeking access to the employment market of the other Party, or measures regarding nationality or citizenship, or residence or employment on a permanent basis; and (g) services supplied in the exercise of governmental authority.
3. Notwithstanding subparagraph 2(b), this Chapter shall apply to measures affecting:
(a) aircraft repair and maintenance services;
(b) the selling and marketing of air transport services; and
(c) computer reservation system services.
4. Annex 4 provides supplementary provisions to this Chapter on financial services, including scope and definitions.
5. Annex 5 provides supplementary provisions to this definitions.

Article 7.2. Definitions

For the purposes of this Chapter:
(a) the term "aircraft repair and maintenance services" means such activities when undertaken on an aircraft or a part thereof while it is withdrawn from services and does not include so- called line maintenance;
(b) the term "computer reservation system services" means services provided by computerized systems that contain information about air carriers' schedules, availability, fares and fare rules, through which reservations may be made or tickets may be issued;
(c) the term "existing" means in effect on the date of entry into force of this Agreement;
(d) the term "juridical person of the other Party" means a juridical person which is either:
(i) constituted or otherwise organized under the law of the other Party; or
(ii) in the case of the supply of a service through commercial presence, owned or controlled by:
(A) natural persons of the other Party; or
(B) juridical persons of the other Party identified under subparagraph (i);
(e) the term "measure" means any measure, whether in the form of a law, regulation, rule, procedure, decision, administrative action or any other form; Note: The term "measure" shall include taxation measures to the extent covered by the GATS.
(f) the term "measure adopted or maintained by a Party" means any measure adopted or maintained by:
(i) any level of government or authority of a Party; and
(ii) non-governmental bodies in the exercise of powers delegated by any level of government or authority of a Party;
(g) the term "measures by a Party affecting trade in services" includes measures with respect to:
(i) the purchase, payment or use of a service;
(ii) the access to and use of, in connection with the supply of a service, services which are required by the Party to be offered to the public generally; and
(iii) the presence, including commercial presence, of persons of the other Party for the supply of a service in the Area of the former Party;
(h) the term "monopoly supplier of a service" means any person, public or private, which in the relevant market of the Party, is authorized or established formally or in effect by that Party as the sole supplier of that service;
(i) the term "natural person of a Party" means a national of a Party under the law of the Party;
(j) the term "selling and marketing of air transport services" means opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution. These activities do not include the pricing of air transport services nor the applicable conditions;
(k) the term "service supplied in the exercise of governmental authority" means any service which is supplied neither on a commercial basis nor in competition with one or more service suppliers;
(l) the term "supply of a service" includes the production, distribution, marketing, sale and delivery of a service;
(m) the term "trade in services" means the supply of a service:
(i) from the Area of a Party into the Area of the other Party ("cross-border supply mode");
(ii) in the Area of a Party to the service consumer of the other Party ("consumption abroad mode");
(iii) by a service supplier of a Party, through commercial presence in the Area of the other Party ("commercial presence mode"); or (iv) by a service supplier of a Party, through presence of natural persons of that Party in the Area of the other Party ("presence of natural persons mode"); and
(n) the term "traffic rights" means the rights for scheduled and non-scheduled services to operate and/or to carry passengers, cargo and mail for remuneration or hire from, to, within, or over a Party, including points to be served, routes to be operated, types of traffic to be carried, capacity to be provided, tariffs to be charged and their conditions, and criteria for designation of airlines, including such criteria as number, ownership and control.

Article 7.3. National Treatment

1. In the sectors inscribed in its Schedule of Specific Commitments in Annex 6, and subject to any conditions and qualifications set out therein, each Party shall accord to services and service suppliers of the other Party, with respect to all measures affecting the supply of services, treatment no less favorable than that it accords to its own like services and service suppliers.

Note: Specific commitments assumed under this Article shall not be construed to require either Party to compensate for any inherent competitive disadvantages which result from the foreign character of the relevant services or service suppliers.
2. A Party may meet the requirement of paragraph 1 by according to services and service suppliers of the other Party, either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers.
3. Formally identical or formally different treatment shall be considered to be less favorable if it modifies the conditions of competition in favor of services or service suppliers of a Party compared to like services or service suppliers of the other Party.

Article 7.4. Most-favored-nation Treatment

1. Each Party shall accord to services and service suppliers of the other Party treatment no less favorable than that it accords to like services and service suppliers of any non-Party.
2. Each Party may maintain measures inconsistent with paragraph 1 provided that such measures are listed in, and meet the conditions of, the List of Most-Favored-Nation Treatment Exemptions in Annex 6.

Article 7.5. Market Access

1. With respect to market access through the modes of supply identified in subparagraph (m) of Article 7.2, a Party shall accord services and service suppliers of the other Party treatment no less favorable than that provided for under the terms, limitations and conditions agreed and specified in its Schedule of Specific Commitments in Annex 6. Note: If a Party undertakes a market-access commitment in relation to the supply of a service through the mode of supply referred to in subparagraph (m)(i) of Article 7.2 and if the cross-border movement of capital is an essential part of the service itself, that Party is thereby committed to allow such movement of capital. If a Party undertakes a market-access commitment in relation to the supply of a service through the mode of supply referred to in subparagraph (m)(iii) of Article 7.2, it is thereby committed to allow related transfers of capital into its Area.
2. In sectors where market-access commitments are undertaken, the measures which a Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire Area, unless otherwise specified in its Schedule of Specific Commitments in Annex 6, are defined as:
(a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;
(b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(c) limitations on the total number of service operations or on the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; Note: This subparagraph does not cover measures of a Party which limit inputs for the supply of services.
(d) limitations on the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test;
(e) measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service; and
(f) limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment.

Article 7.6. Additional Commitments

The Parties may negotiate commitments with respect to measures affecting trade in services not subject to scheduling under Articles 7.3 and 7.5, including those regarding qualifications, standards or licensing matters. Such commitments shall be inscribed in a Party's Schedule of Specific Commitments in Annex 6.

Article 7.7. Schedule of Specific Commitments

1. Each Party shall set out in a schedule the specific commitments it undertakes under Articles 7.3, 7.5 and 7.6. With respect to sectors or sub-sectors where such commitments are undertaken, each Schedule of Specific Commitments in Annex 6 shall specify:
(a) terms, limitations and conditions on market access;
(b) conditions and qualifications on national treatment;
(c) undertakings related to additional commitments; and
(d) where appropriate, the time-frame for implementation of such commitments.
2. With respect to sectors or sub-sectors where the specific commitments are undertaken and which are indicated with "SS", any terms, limitations, conditions and qualifications, referred to in subparagraphs 1(a) and 1(b), other than those based on measures pursuant to immigration laws and regulations, shall be limited to those based on existing non-conforming measures.
3. Measures inconsistent with both Articles 7.3 and 7.5 shall be inscribed in the column related to Article 7.5. In this case the inscription will be considered to provide a condition or qualification to Article 7.3 as well.

Article 7.8. Domestic Regulation

1. Each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.
2. Where authorization is required by a Party for the supply of a service, the competent authorities of that Party shall, within a reasonable period of time after the submission of an application is considered complete under the laws and regulations of that Party, inform the applicant of the decision concerning the application. Upon request of the applicant, the competent authorities of that Party shall provide, without undue delay, information concerning the status of the application.
3. With a view to ensuring that any measure adopted or maintained by a Party in any services sector related to the authorization, qualification requirements and procedures, technical standards and licensing requirements of service suppliers of the other Party does not constitute an unnecessary barrier to trade in services, each Party shall ensure that such measure:
(a) is based on objective and transparent criteria, such as the competence and ability to supply the service; (b) is not more burdensome than necessary to ensure the quality of the service; and
(c) does not constitute a disguised restriction on the supply of the service.

Article 7.9. Recognition

1. A Party may recognize the education or experience obtained, requirements met, or licenses or certifications granted in the other Party for the purposes of the fulfillment, in whole or in part, of its standards or criteria for the authorization, licensing or certification of service suppliers of the other Party.
2. Recognition referred to in paragraph 1, which may be achieved through harmonization or otherwise, may be based upon an agreement or arrangement between the Parties or may be accorded unilaterally.
3. Where a Party recognizes, by agreement or arrangement between the Party and a non-Party or unilaterally, the education or experience obtained, requirements met, or licenses or certifications granted in the non-Party:
(a) nothing in Article 7.4 shall be construed to require the Party to accord such recognition to the education or experience obtained, requirements met, or licenses or certifications granted in the other Party;
(b) the Party shall accord the other Party an adequate opportunity to negotiate the accession of that other Party to such an agreement or arrangement or to negotiate a comparable one with it between the Parties; and
(c) where the Party accords such recognition unilaterally, the Party shall accord the other Party an adequate opportunity to demonstrate that the education or experience obtained, requirements met, or licenses or certifications granted in the other Party should also be recognized.

Article 7.10. Monopolies and Exclusive Service Suppliers

1. A Party shall ensure that any monopoly supplier of a service in its Area does not, in the supply of the monopoly service in the relevant market, act in a manner inconsistent with that Party's obligations under Articles 7.3, 7.4 and 7.5.
2. Where a Party's monopoly supplier competes, either directly or through an affiliated company, in the supply of a service outside the scope of its monopoly rights, in an area subject to its Specific Commitments, that Party shall ensure that such a supplier does not abuse its monopoly position to act in the Area of that Party in a manner inconsistent with such commitments under Articles 7.3 and 7.5.
3. If a Party has a reason to believe that a monopoly supplier of a service of the other Party is acting in a manner inconsistent with paragraph 1 or 2, the former Party may request the other Party to provide specific information concerning the relevant operations.
4. This Article shall also apply to cases of exclusive service suppliers, where a Party, formally or in effect:
(a) authorizes or establishes a small number of service suppliers; and
(b) substantially prevents competition among those suppliers in its Area.

Article 7.11. Business Practices

1. The Parties recognize that certain business practices of service suppliers, other than those falling under Article 7.10, may restrain competition and thereby restrict trade in services.
2. A Party shall, upon request of the other Party, enter into consultations with a view to eliminating practices referred to in paragraph 1. The Party addressed shall accord full and sympathetic consideration to such a request and shall cooperate through the supply of publicly available non-confidential information of relevance to the matter in question. The Party addressed shall also provide other information available to the requesting Party, subject to its laws and regulations and to the conclusion of a satisfactory agreement concerning the safeguarding of its confidentiality by the requesting Party.

Article 7.12. Payments and Transfers

1. Except under the circumstances envisaged in Article 7.13, a Party shall not apply restrictions on international transfers and payments for current transactions related to trade in services.
2. Nothing in this Chapter shall affect the rights and obligations of the Parties as members of the International Monetary Fund under the Articles of Agreement of the International Monetary Fund, including the use of exchange actions which are in conformity with the Articles of Agreement of the International Monetary Fund. However, a Party shall not impose restrictions on any capital transactions inconsistently with its Specific Commitments regarding such transactions, except under Article 7.13 or upon request of the International Monetary Fund.

Article 7.13. Restrictions to Safeguard the Balance of Payments

1. In the event of serious balance-of-payments and external financial difficulties or threat thereof, a Party may adopt or maintain restrictions on trade in services, including on payments or transfers for transactions. 2. The restrictions referred to in paragraph 1 shall:
(a) be applied on the basis of national treatment and most-favored-nation treatment;
(b) be consistent with the Articles of Agreement of the International Monetary Fund;
(c) avoid unnecessary damage to the commercial, economic and financial interests of the other Party;
(d) not exceed those necessary to deal with the circumstances described in paragraph 1; and
(e) be temporary and be phased out progressively as the situation specified in paragraph 1 improves.
3. In determining the incidence of such restrictions, a Party may give priority to the supply of services which are more essential to its economic or development programs. However, such restrictions shall not be adopted or maintained for the purposes of protecting a particular service sector.
4. Any restrictions adopted or maintained under paragraph 1, or any changes therein, shall be promptly notified to the other Party.

Article 7.14. Transparency

Each Party shall prepare a non-legally binding list providing all relevant measures affecting the obligations under Articles 7.3, 7.4 and 7.5 in all sectors. The list shall be exchanged with the other Party and made publicly available within five years from the date of entry into force of this Agreement and shall also be subject to future review and revision where necessary or as agreed between the Parties. The list shall include the following elements:
(a) sector and sub-sector or matter;
(b) type of inconsistency (i.e. national treatment, most-favored-nation treatment and/or market access);
(c) legal source or authority of the measure; and
(d) brief description of the measure.

Note: The list under this Article is made solely for the purposes of transparency, and shall not be construed to affect the rights and obligations of a Party under this Chapter. Any review or revision under this Article is solely for the purposes of updating such list.

Article 7.15. Denial of Benefits

1. A Party may deny the benefits of this Chapter to a service supplier of the other Party that is a juridical person of the other Party, where the denying Party establishes that the juridical person is owned or controlled by persons of a non-Party, and the denying Party:
(a) does not maintain diplomatic relations with the non-Party; or
(b) adopts or maintains measures regarding the non- Party that:
(i) prohibit transactions with the juridical person; or
(ii) would be violated or circumvented if the benefits of this Chapter were accorded to the juridical person.
2. Subject to prior notification and consultation, a Party may deny the benefits of this Chapter to a service supplier of the other Party that is a juridical person of the other Party, where the denying Party establishes that the juridical person is owned or controlled by persons of a non-Party and has no substantial business activities in the Area of the other Party.

Article 7.16. Sub-committee on Trade In Services

1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Sub-Committee on Trade in Services (hereinafter referred to in this Article as "the Sub-Committee").
2. The functions of the Sub-Committee 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 of the Sub-Committee to the Joint Committee; and
(d) carrying out other functions as may be delegated by the Joint Committee.
3. The Sub-Committee shall be composed of representatives of the Governments of the Parties.
4. The Sub-Committee shall hold meetings at such times and venues or by means, as may be agreed by the Parties.

Article 7.17. Review of Commitments

1. With the objective of further liberalizing trade in services between the Parties, including the possibility of renegotiating the format of schedules, the Parties shall consider in due course undertaking a review of this Chapter and the Annexes referred to therein on occasions as may be agreed by the Parties.
2. If, after the entry into force of this Agreement, a Party has undertaken further liberalization autonomously in any of the services sectors, sub-sectors or activities, it shall consider in due course requests from the other Party to incorporate such liberalization into this Agreement.

Chapter 8. Movement of Natural Persons

Article 8.1. General Principles

1. This Chapter reflects the preferential trading relationship between the Parties, the desire of the Parties to facilitate entry and temporary stay of natural persons on a mutually beneficial basis and to establish transparent criteria and procedures for entry and temporary stay, and the need to ensure border security and to protect the domestic labor force and permanent employment in each Party.
2. Each Party shall apply its measures related to the provisions of this Chapter in accordance with the general principles referred to in paragraph 1, and, in particular, shall apply those measures expeditiously so as to avoid unduly impairing or delaying trade in goods or services or investment activities under this Agreement.

Article 8.2. Scope

1. This Chapter shall apply to measures affecting the entry and temporary stay of natural persons of a Party who enter the other Party and fall under one of the categories referred to in paragraph 1 of Article 8.4.
2. This Chapter shall not apply to measures affecting natural persons of a Party seeking access to the employment market of the other Party, nor shall it apply to measures regarding nationality or citizenship, or residence or employment on a permanent basis.
3. This Chapter shall not prevent a Party from applying measures to regulate the entry and temporary stay of natural persons of the other Party, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across, its borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to the other Party under the terms of specific commitments set out in Annex 7.

Note: The sole fact of requiring a visa for natural persons of the other Party and not for those of certain non-Parties shall not be regarded as nullifying or impairing benefits under the terms of specific commitments set out in Annex 7.

Article 8.3. Definition

For the purposes of this Chapter, the term "naturalperson of a Party" means a natural person who resides in aParty or elsewhere and who under the law of the Party is anational of the Party.

Article 8.4. Specific Commitments

1. Each Party shall set out in Annex 7 the specific commitments it undertakes for:
(a) short-term business visitors of the other Party;
(b) intra-corporate transferees of the other Party;
(c) investors of the other Party;
(d) natural persons of the other Party who engage in professional services;
(e) natural persons of the other Party who engage in supplying services, which require technology or knowledge at an advanced level on the basis of a contract with public or private organizations in the former Party; and
(f) spouse and children accompanying those natural persons set out in subparagraphs (b) through (e).

2. Natural persons covered by the categories referred to in paragraph 1 shall be granted entry and temporary stay in accordance with the terms and conditions set out in Annex 7, provided that the natural persons comply with immigration laws and regulations applicable to entry and temporary stay which are not inconsistent with the provisions of this Chapter.
3. Neither Party shall impose or maintain any limitation on the number of natural persons to be granted entry and temporary stay under paragraph 1.

Article 8.5. Requirements and Procedures

1. Each Party shall publish or otherwise make available to the other Party upon the date of entry into force of this Agreement, with respect to natural persons covered by that Party's specific commitments set out in Annex 7, information on requirements and procedures necessary for an effective application by natural persons of the other Party for the grant of:
(a) entry into the former Party;
(b) initial temporary stay in the former Party;
(c) renewal of temporary stay in the former Party; (d) where applicable, permission to work in the former Party; and
(e) change of status of temporary stay in the former Party.
2. Each Party shall endeavor to provide, upon request by a natural person of the other Party, information on requirements and procedures referred to in paragraph 1.
3. Each Party shall endeavor to promptly inform the other Party of the introduction of any new requirements and procedures, or changes in any existing requirements and procedures referred to in paragraph 1 that affect the effective application by natural persons of the other Party for the grant of entry, temporary stay or permission referred to in subparagraphs 1(a) through (e).
4. Each Party shall ensure that fees charged by its competent authorities on application referred to in paragraph 1 do not in themselves represent an unjustifiable impediment to entry and temporary stay of natural persons of the other Party under this Chapter.
5. Each Party shall endeavor, to the maximum extent possible, to take measures to simplify the requirements and to facilitate and expedite the procedures related to the entry and temporary stay of natural persons of the other Party subject to its laws and regulations.

Article 8.6. Sub-committee on Movement of Natural Persons

1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Sub-Committee on Movement of Natural Persons (hereinafter referred to in this Article as "the Sub-Committee").
2. The functions of the Sub-Committee shall be:
(a) reviewing and monitoring the implementation and operation of this Chapter;
(b) considering the development of measures to further facilitate the entry and temporary stay of natural persons on a reciprocal basis;
(c) exchanging information on measures affecting entry and temporary stay of natural persons referred to in Annex 7;
(d) discussing any issues related to this Chapter as may be agreed upon;
(e) reporting the findings of the Sub-Committee to the Joint Committee; and
(f) carrying out other functions as may be delegated by the Joint Committee.
3. The Sub-Committee shall be composed of representatives of the Governments of the Parties.
4. The Sub-Committee shall hold meetings at such times and venues or by means, as may be agreed by the Parties.

Article 8.7. Dispute Settlement

1. The dispute settlement procedures provided for in Chapter 16 shall not apply to this Chapter unless:
(a) the matter involves a pattern of practice; and
(b) the natural persons of a Party affected by that matter have exhausted the available domestic administrative remedies of the other Party.
2. The remedies referred to in subparagraph 1(b) shall be deemed to be exhausted if a final determination in the matter has not been issued by the competent authority of the other Party within one year after the date of the institution of the administrative remedy, and the failure to issue such a determination is not attributable to the delay caused by the natural persons.

Chapter 9. Electronic Commerce

Article 9.1. General Provisions

1. The Parties recognize the economic growth and opportunities provided by electronic commerce, and the importance of avoiding unnecessary barriers to its use and development.
2. The objective of this Chapter is to contribute to creating an environment of trust and confidence in the use of electronic commerce and to promote electronic commerce between the Parties and the wider use of electronic commerce globally.
3. The Parties recognize the principle of technological neutrality in electronic commerce.
4. In the event of any inconsistency between this Chapter and Chapter 2, 7, 10 or 12, the Chapter other than this Chapter shall prevail to the extent of the inconsistency.

Article 9.2. Definitions

For the purposes of this Chapter:
(a) the term "digital products" means computer programs, text, video, images, sound recordings and other products, that are digitally encoded, regardless of whether they are fixed on a carrier medium or transmitted electronically;
(b) the term "electronic certificate" means an electromagnetic record prepared for certifying that matters used to confirm that the user has performed the electronic signature are pertaining to such user;
(c) the term "electronic signature" means a measure taken with respect to information that can be recorded in an electromagnetic record and which fulfills both of the following requirements:
(i) that the measure indicates that such information has been approved by a person who has taken such measure; and
(ii) that the measure confirms that such information has not been altered; and
(d) the term "trade administration documents" means forms that a Party issues or controls and that must be completed by or for an importer or exporter in connection with the importation or exportation of goods.

Article 9.3. Customs Duties

Each Party shall maintain its practice of not imposing customs duties on electronic transmissions between the Parties.

Article 9.4. Non-discriminatory Treatment of Digital Products

1. Neither Party shall adopt or maintain:
(a) measures that accord less favorable treatment to digital products of the other Party than it accords to its own like digital products; and
(b) measures that accord less favorable treatment to digital products of the other Party than it accords to like digital products of a non-Party.
2. Paragraph 1 shall not apply to:
(a) government procurement;
(b) subsidies provided by a Party or a state enterprise, including grants, government- supported loans, guarantees and insurance;
(c) measures maintained by a Party in accordance with paragraph 2 of Article 7.4;
(d) measures adopted or maintained by a Party within the scope of Article 7.3 or 7.5 which are:
(i) related to the sectors not committed in its Schedule of Specific Commitments in Annex 6; or
(ii) not inconsistent with the terms, limitations, conditions and qualifications agreed and specified in its Schedule of Specific Commitments in Annex 6; and
(e) non-conforming measures adopted or maintained by a Party in accordance with Article 10.8.
3. In implementing its obligations under paragraph 1, each Party shall, where necessary, determine in good faith whether a digital product is a digital product of a Party, of the other Party or of a non-Party. Such determination shall be made in a transparent, objective, reasonable and fair manner.
4. Each Party shall, upon request of the other Party, explain how it determines the origin of a digital product where it determines such origin in implementing its obligations under paragraph 1.
5. The Parties shall cooperate in internationalorganizations and fora to foster the development ofcriteria for the determination of the origin of a digitalproduct, with a view to considering the incorporation ofsuch criteria into this Agreement.

Article 9.5. Electronic Signature

1. Neither Party shall adopt or maintain measures regulating electronic signature that would:
(a) prohibit parties to an electronic transaction from mutually determining the appropriate electronic signature methods for their transaction; or
(b) prevent parties to an electronic transaction from having the opportunity to prove in court that their electronic transactions comply with any legal requirements.
2. Notwithstanding paragraph 1, each Party may require that, for a particular category of electronic transactions, the electronic signatures meet certain performance standards or are based on a specific electronic certificate issued by a supplier of certification services accredited or recognized in accordance with the laws and regulations of the Party, provided that the requirement:
(a) serves a legitimate policy objective; and
(b) is substantially related to achieving that objective.

Article 9.6. Consumer Protection

1. The Parties recognize the importance of adopting and maintaining transparent and effective consumer protection measures for electronic commerce as well as measures conducive to the development of consumer confidence.
2. The Parties recognize the importance of cooperation between their respective competent authorities in charge of consumer protection on activities related to electronic commerce in order to enhance consumer protection.
3. The Parties shall adopt or maintain measures, in accordance with their respective laws and regulations, to protect the personal data of electronic commerce users.

Article 9.7. Unsolicited Commercial E-mail

Each Party shall endeavor to take appropriate and necessary measures to regulate unsolicited commercial e-mail for advertising purposes.

Article 9.8. Paperless Trade Administration

1. Each Party shall endeavor to make all trade administration documents available to the public in electronic form.
2. Each Party shall endeavor to accept trade administration documents submitted electronically as the legal equivalent of the paper version of such documents.
3. The Parties shall cooperate bilaterally and in international fora to enhance the acceptance of electronic versions of trade administration documents.

Article 9.9. Domestic Regulation

Each Party shall ensure that all its measures affecting electronic commerce are administered in a transparent, objective, reasonable and impartial manner, and are not more burdensome than necessary to meet legitimate policy objectives.

Article 9.10. Prohibition on Requirement Concerning the Location of Computing Facilities

1. Neither Party shall require:
(a) a service supplier of the other Party;
(b) an investor of the other Party; or
(c) an investment of an investor of the other Party in the Area of the former Party, as a condition for conducting its business in the Area of the former Party, to use or locate computing facilities in that Area.
2. Notwithstanding paragraph 1, nothing in this Article shall be construed to prevent a Party from adopting or maintaining measures affecting the use or location of computing facilities necessary to achieve a legitimate public policy objective, provided that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade.

Article 9.11. Source Code

1. Neither Party shall require the transfer of, or access to, source code of software owned by a person of the other Party, as a condition of the import, distribution, sale or use of such software, or of products containing such software, in its Area.
2. For the purposes of this Article, software subject to paragraph 1 is limited to mass-market software or products containing such software, and does not include software used for critical infrastructure.

Article 9.12. Cooperation

1. The Parties shall, where appropriate, cooperate bilaterally and participate actively in regional and multilateral fora to promote the development of electronic commerce.
2. The Parties shall, where appropriate, share information and experiences, including on related laws, regulations and best practices with respect to electronic commerce, related to, LQWHUDOLD, consumer confidence, cyber-security, combatting unsolicited commercial e-mail, intellectual property, electronic government and personal data protection.
3. The Parties shall cooperate to overcome obstacles encountered by small and medium enterprises in the use of electronic commerce.
4. Each Party shall encourage, through existing means available to it, the activities of non-profit organizations in that Party aimed at promoting electronic commerce, including the exchange of information and views.
5. The Parties recognize the importance of working to maintain cross-border flows of information as an essential element for a vibrant electronic commerce environment.
6. The Parties recognize the importance of further enhancement of trade in digital products.

Article 9.13. Sub-committee on Electronic Commerce

1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Sub-Committee on Electronic Commerce (hereinafter referred to in this Article as "the Sub-Committee").
2. The functions of the Sub-Committee shall be:
(a) reviewing and monitoring the implementation and operation of this Chapter;
(b) discussing any issues related to this Chapter including, where appropriate, the possible review of Article 9.4;
(c) seeking new opportunities to further enhance trade in digital products;
(d) reporting the findings of the Sub-Committee to the Joint Committee; and
(e) carrying out other functions as may be delegated by the Joint Committee.
3. The Sub-Committee shall be composed of representatives of the Governments of the Parties.
4. The Sub-Committee shall hold meetings at such times and venues or by means, as may be agreed by the Parties.

Chapter 10. Investment

Article 10.1. Scope

1. This Chapter shall apply to measures adopted or maintained by a Party related to:
(a) investors of the other Party;
(b) investments of investors of the other Party in the Area of the former Party; and
(c) with respect to Articles 10.7 and 10.17, all investments in the Area of the former Party.

Note 1: For greater certainty, this Chapter shall also apply to measures adopted or maintained by a Party related to investments made by investors of the other Party in the Area of the former Party prior to the entry into force of this Agreement.

Note 2: For greater certainty, this Chapter shall not apply to claims arising out of events which occurred prior to the entry into force of this Agreement.
2. In the event of any inconsistency between this Chapter and Chapter 7:
(a) with respect to matters covered by Articles 10.3, 10.4 and 10.7, Chapter 7 shall prevail to the extent of the inconsistency; and
(b) with respect to matters not falling under subparagraph (a), this Chapter shall prevail to the extent of the inconsistency.
3. Nothing in this Chapter shall impose any obligation on either Party regarding measures pursuant to immigration laws and regulations.

Article 10.2. Definitions

For the purposes of this Chapter:
(a) the term "Bilateral Investment Agreement" means the Agreement between Japan and Mongolia concerning the Promotion and Protection of Investment signed at Tokyo on February 15, 2001;
(b) an enterprise is:
(i) "owned" by an investor if more than 50 percent of the equity interest in it is owned by the investor; and
(ii) "controlled" by an investor if the investor has the power to name a majority of its directors or otherwise to legally direct its actions;
(c) the term "existing" means in effect on the date of entry into force of this Agreement;
(d) the term "freely usable currency" means freely usable currency as defined under the Articles of Agreement of the International Monetary Fund;
(e) the term "investment activities" means establishment, acquisition, expansion, operation, management, maintenance, use, enjoyment and sale or other disposal of an investment; and
(f) the term "measure" means any measure, whether in the form of a law, regulation, rule, procedure, decision, administrative action or any other form.

Article 10.3. National Treatment

1. Each Party shall in its Area accord to investors of the other Party and to their investments treatment no less favorable than the treatment it accords in like circumstances to its own investors and to their investments with respect to investment activities.
2. Paragraph 1 shall not be construed to prevent a Party from adopting or maintaining a measure that prescribes special formalities in connection with investment activities of investors of the other Party in its Area, provided that such special formalities do not impair the substance of the rights of such investors under this Chapter.

Article 10.4. Most-favored-nation Treatment

Each Party shall in its Area accord to investors of the other Party and to their investments treatment no less favorable than the treatment it accords in like circumstances to investors of a non-Party and to their investments with respect to investment activities.

Article 10.5. General Treatment

1. Each Party shall in its Area accord to investments of investors of the other Party treatment in accordance with international law, including fair and equitable treatment and full protection and security.

Note 1: This paragraph prescribes the customary international law minimum standard of treatment of aliens as the minimum standard of treatment to be afforded to investments of investors of the other Party. The concepts of "fair and equitable treatment" and "full protection and security" do not require treatment in addition to or beyond that which is required by the customary international law minimum standard of treatment of aliens. A determination that there has been a breach of another provision of this Agreement, or of a separate international agreement, does not establish that there has been a breach of this paragraph.

Note 2: "Fair and equitable treatment" includes the obligation of the Party not to deny justice in criminal, civil or administrative adjudicatory proceedings in accordance with the principle of due process of law.
2. Each Party shall observe any written obligation it may have entered into with respect to a specific investment by an investor of the other Party, which the investor could have relied on at the time of establishment, acquisition or expansion of such investment.
3. This Article shall apply to taxation measures.

Article 10.6. Access to the Courts

1. Each Party shall in its Area accord to investors of the other Party treatment no less favorable than the treatment it accords in like circumstances to its own investors or to investors of a non-Party with respect to access to the courts and administrative agencies in all degrees of jurisdiction, both in pursuit and in defense of such investors' rights.
2. This Article shall apply to taxation measures.

Article 10.7. Prohibition of Performance Requirements

1. Neither Party shall impose or enforce any of the following requirements, or enforce any commitment or undertaking, in connection with investment activities of an investor of a Party or of a non-Party in its Area to: (a) export a given level or percentage of goods or services;
(b) achieve a given level or percentage of domestic content;
(c) purchase, use or accord a preference to goods produced or services provided in its Area, or to purchase goods or services from persons in its Area;
(d) relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with an investment of the investor;
(e) restrict sales of goods or services in its Area that an investment of the investor produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings;
(f) restrict the exportation or sale for export;
(g) appoint, as executives, managers or members of boards of directors, individuals of any particular nationality;
(h) locate the headquarters of that investor for a specific region or the world market in its Area;
(i) hire a given number or percentage of its nationals;
(j) supply one or more of the goods that the investor produces or the services that the investor provides to a specific region or the world market, exclusively from the Area of the former Party; or
(k) adopt:
(i) given rate or amount of royalty under a license contract; or
(ii) a given duration of the term of a license contract, with respect to any license contract freely entered into between the investor and a person in its Area, whether it has been entered into or not, provided that the requirement is imposed or the commitment or undertaking is enforced by an exercise of governmental authority of the Party.

Note: A "license contract" referred to in this subparagraph means any license contract concerning transfer of technology, a production process, or other proprietary knowledge.

2. Neither Party shall condition the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Party or of a non-Party in its Area, on compliance with any of the following requirements to:
(a) achieve a given level or percentage of domestic content;
(b) purchase, use or accord a preference to goods produced or services provided in its Area, or to purchase goods or services from persons in its Area;
(c) relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with an investment of the investor;
(d) restrict sales of goods or services in its Area that an investment of the investor produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; or
(e) restrict the exportation or sale for export.
3. (a) Nothing in paragraph 2 shall be construed to prevent a Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Party or of a non-Party in its Area, on compliance with a requirement to locate production, supply a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its Area. (b) Subparagraph 1(k) shall not apply when the requirement is imposed or the commitment or undertaking is enforced by a court or competition authority to remedy an alleged violation of laws controlling the anti-competitive activities.
(c) Subparagraphs 1(a), 1(b), 1(c), 2(a) and 2(b) shall not apply to qualification requirements for goods or services with respect to foreign aid programs.
(d) Subparagraphs 2(a) and 2(b) shall not apply to requirements imposed by an importing Party related to the content of goods necessary to qualify for preferential tariffs or preferential quotas.
4. Paragraphs 1 and 2 shall not apply to any requirement other than the requirements set out in those paragraphs.

Article 10.8. Non-conforming Measures

1. Articles 10.3, 10.4 and 10.7 shall not apply to: (a) any existing non-conforming measure that is maintained by the central government of a Party, as set out in its Schedule in Annex 8; (b) any existing non-conforming measure that is maintained by a local government of a Party; (c) the continuation or prompt renewal of any nonconforming measure referred to in subparagraphs (a) and (b); or (d) an amendment or modification to any nonconforming measure referred to in subparagraphs (a) and (b), to the extent that the amendment or modification does not decrease the conformity of the measure, as it existed immediately before the amendment or modification, with Articles 10.3, 10.4 and 10.7.
2. If a Party considers that the non-conforming measure referred to in subparagraph 1(b) and adopted or maintained by a prefecture or the city of Ulaanbaatar or a province of the other Party creates an impediment to investment activities of an investor of the former Party, that former Party may request consultations with respect to the application of that measure with a view to achieving mutually satisfactory solution.
3. Articles 10.3, 10.4 and 10.7 shall not apply to any measure that a Party adopts or maintains with respect to sectors, sub-sectors or activities, as set out in its Schedule in Annex 9.
4. Neither Party shall, under any measure adopted after the date of entry into force of this Agreement and covered by its Schedule in Annex 9, require an investor of the other Party, by reason of its nationality, to sell or otherwise dispose of an investment that exists at the time when the measure becomes effective.
5. In cases where a Party makes an amendment or a modification to any existing non-conforming measure set out in its Schedule in Annex 8 or where a Party adopts any new or more restrictive measure with respect to sectors, sub- sectors or activities set out in its Schedule in Annex 9 after the date of entry into force of this Agreement, the Party shall, prior to the implementation of the amendment or modification or the new or more restrictive measure, or in exceptional circumstances, as soon as possible thereafter:
(a) notify the other Party of detailed information on such amendment, modification or measure; and
(b) hold, upon request of the other Party, consultations in good-faith with the other Party with a view to achieving mutual satisfaction.
6. Each Party shall endeavor, where appropriate, to reduce or eliminate the non-conforming measures specified in its Schedules in Annexes 8 and 9 respectively.
7. Articles 10.3 and 10.4 shall not apply to any measure covered by the exceptions to, or derogations from, obligations under Articles 3 and 4 of the TRIPS Agreement, as specifically provided in Articles 3 through 5 of the TRIPS Agreement.
8. Articles 10.3, 10.4 and 10.7 shall not apply to any measure that a Party adopts or maintains with respect to government procurement.

Article 10.9. Expropriation and Compensation

1. Neither Party shall expropriate or nationalize an investment in its Area of investors of the other Party or take any measure equivalent to expropriation or nationalization (hereinafter referred to as "expropriation") except:
(a) for a public purpose;
(b) in a non-discriminatory manner;
(c) upon payment of prompt, adequate and effective compensation in accordance with paragraphs 2 through 4; and
(d) in accordance with due process of law and Article 10.5.
2. The compensation shall be equivalent to the fair market value of the expropriated investment at the time when the expropriation was publicly announced or when the expropriation took place, whichever is earlier. The fair market value shall not reflect any change in value occurring because the intended expropriation had become publicly known earlier.
3. The compensation shall be paid without delay and shall include interest at a commercially reasonable rate, taking into account the length of time until the time of payment. It shall be effectively realizable and freely transferable, and shall be freely convertible into the currency of the Party of the investors concerned and into freely usable currencies at the market exchange rate prevailing on the date of expropriation.
4. Without prejudice to the provisions of Article 10.13, the investors affected by expropriation shall have a right of access to the courts or administrative agencies of the Party making the expropriation to seek a prompt review of the investors' case and the amount of compensation in accordance with the principles set out in this Article.
5. This Article shall apply to taxation measures, to the extent that such taxation measures constitute expropriation.
6. This Article shall be interpreted in accordance with Annex 10.

Article 10.10. Protection from Strife

1. Each Party shall accord to investors of the other Party that have suffered loss or damage related to their investments in the Area of the former Party due to armed conflict or a state of emergency such as revolution, insurrection, civil disturbance or any other similar event in the Area of that former Party, treatment, as regards restitution, indemnification, compensation or any other settlement, that is no less favorable than the treatment it accords to its own investors or to investors of a non- Party, whichever is more favorable to the investors of the other Party.
2. Any payment as a means of settlement referred to in paragraph 1 shall be effectively realizable, freely transferable and freely convertible at the market exchange rate into the currency of the Party of the investors concerned and freely usable currencies.
3. Notwithstanding the provisions of Article 1.10, neither Party shall be relieved of its obligation under paragraph 1 by reason of its measures taken in accordance with that Article.

Article 10.11. Transfers