(b) be contrary to the public interest as determined by its domestic laws, regulations and administrative provisions;
(c) be contrary to any of its domestic laws, regulations and administrative provisions including but not limited to those protecting personal privacy or the financial affairs and accounts of individual customers of financial institutions;
(d) impede law enforcement; or
(e) prejudice legitimate commercial interests of particular public or private enterprises
Article 5.11. Co-operation
1. The Parties shall strengthen their co-operation in the field of standards, technical regulations and conformity assessment procedures with a view to increasing the mutual understanding of their respective systems and facilitating access to their respective markets.
2. The Parties shall seek to identify, develop and promote trade facilitating initiatives which may include, but are not limited to:
(a) exchanging information and experiences on the preparation and application of their technical regulations and the use of good regulatory practice;
(b) where appropriate, simplifying technical regulations, standards and conformity assessment procedures;
(c) avoiding unnecessary divergence in their approaches to technical regulations and conformity assessment procedures, and working towards the possibility of converging or aligning technical regulations with international standards;
(d) encouraging cooperation between their respective bodies, public or private, responsible for metrology, standardisation, testing, certification and accreditation;
(e) conducting joint studies, symposiums and seminars;
(f) exchanging information in respect of technical regulations, standards, conformity assessment procedures and good regulatory practice;
(g) reinforcing the role of international standards as a basis for technical regulations and conformity assessment procedures;
(h) promoting the accreditation of conformity assessment bodies on the basis of relevant standards and guides of the International Organization for Standardization (“ISO”) and the International Electrotechnical Commission (“IEC”);
(i) ensuring efficient interaction of regulatory authorities at national, regional and international levels, for instance, by referring enquiries from a Party to the appropriate regulatory authorities; and
(j) exchanging information on developments in relevant regional and multilateral fora related to standards, technical regulations and conformity assessment procedures.
3. The Parties shall promote bilateral cooperation between their public and private institutions in the field of:
(a) food labelling standards, regulations, and certification;
(b) pharmaceuticals and medical devices;
(c) apparels; and
(d) other sectors of mutual interest.
4. Upon request, a Party shall give appropriate consideration to proposals that the other Party makes for cooperation under the terms of this Chapter.
5. The Parties may enter into mutual recognition agreements (“MRAs”) to strengthen their cooperation in the field of technical regulations, standards and conformity assessment procedures with a view to increasing the mutual understanding of their respective systems and facilitating access to their respective markets.
6. The financial arrangements to cover expenses for the cooperative activities undertaken shall be mutually agreed upon by the Parties on a case by case basis subject to the availability of funds.
Article 5.12. Joint Sub-Committee on Sanitary and Phytosanitary (“SPS”) Measures and Technical Barriers to Trade (“TBT”)
1. The Parties hereby establish the Joint Sub-Committee on Sanitary and Phytosanitary Measures and Technical Barriers to Trade (“Joint Sub-Committee”), comprising representatives from the relevant authorities of each Party. The Joint Sub-Committee shall be co-ordinated by the co-ordinators from both Parties specified in this Chapter.
2. The functions of this Joint Sub-Committee may include the following:
(a) reviewing the functioning of and work done by the Co-ordinators of the SPS and TBT Chapters;
(b) strengthening technical co-operation and communication on SPS and TBT issues to enhance the relationship between the Parties;
(c) consulting on agendas, issues, and positions for meetings covering SPS and/or TBT issues in relevant WTO Committees and International Organisations;
(d) arranging the establishment of ad hoc working groups as mutually agreed by the Parties;
(e) monitoring the progress of work programmes and the implementation of Article 5.11 (Cooperation) and Article 5.14 (Sectoral Annexes); and
(f) other functions mutually agreed by the Parties.
3. Each Party shall ensure the participation of its representatives with responsibility for the items on the agenda for each meeting of the Joint Sub-Committee. Upon mutual agreement, the Parties may invite representatives from industry, business associations or other relevant organisations to participate in parts of the meetings of the Joint Sub- Committee on a case by case basis.
4. The Joint Sub-Committee shall meet at least once every two (2) years unless the Parties agree otherwise. Meetings may be conducted in person, by teleconference, by videoconference, or any other means as mutually agreed by the Parties. The Parties may avail themselves of the opportunity to meet in conjunction with other FTA related meetings or on the margins of international meetings, where possible.
5. The Parties shall inform each other of any significant changes in the structure, organisation and division of responsibility within its competent authorities or co- ordinators.
Article 5.13. Co-ordinators
1. To facilitate the implementation of this Chapter and co-operation between the Parties, each Party shall designate a Co-ordinator, who shall be responsible for co-ordinating with interested authorities in the Party’s territory and communicating with the other Party’s Co-ordinator on all matters pertaining to this Chapter.
2. The Co-ordinators’ functions shall include:
(a) developing the necessary procedures or arrangements for the implementation and administration of this Chapter;
(b) monitoring the implementation and administration of this Chapter;
(c) promptly addressing any issue that a Party raises related to the development, adoption, application, or enforcement of standards, technical regulations or conformity assessment procedures;
(d) exchanging information on standards, technical regulations, and conformity assessment procedures, including referring enquiries from a Party to the appropriate regulatory authorities, in response to all reasonable requests for such information from a Party;
(e) considering and facilitating any sector-specific proposal a Party makes to further the objectives of this Chapter;
(f) facilitating the consideration of a request by a Party for the recognition of the results of conformity assessment procedures, including a request for the negotiation of an agreement, in a sector nominated by that Party;
(g) reviewing this Chapter in light of any developments under the TBT Agreement, and developing recommendations for amendments to this Chapter in light of those developments; and
(h) simultaneously informing the contact points set out in Article 17.16 (Contact Points) of Chapter 17 (Institutional, General and Final Provisions) of any communication between the Parties.
3. The Co-ordinators may communicate through teleconference, videoconference, or any other means, as mutually determined by the Parties.
4. Each Party shall notify the other Party promptly of any change in their Co-ordinator or any amendment to the details of the relevant officials.
5. For the purposes of this Article, the Co-ordinator for:
(a) Singapore shall be:
Ministry of Trade and Industry,
Trade Division,
100 High Street #09-01 The Treasury, Singapore 179434
Tel: (65) 6225 9911
Fax: (65) 6332 7260
Email: mti_email@mti.gov.sg
or its successor; (b) Sri Lanka shall be:
Department of Commerce
4th Floor,
Rakshana Mandiraya
21, Vauxhall Street
Colombo 02, Sri Lanka
Email: fortrade@doc.gov.lk ; spssrilanka@doc.gov.lk
or its successor.
Article 5.14. Sectoral Annexes
1. The Parties may conclude as appropriate, Sectoral Annexes, including MRAs, on product sectors which shall provide the implementing arrangements for such sectors.
2. A Sectoral Annex shall minimally include:
(a) provisions on scope and coverage; and
(b) applicable laws, regulations and administrative provisions i.e. mandatory requirements of each Party concerning the scope and coverage.
3. The Parties shall:
(a) specify and communicate to each other the applicable articles or annexes contained in the mandatory requirements set out in the Sectoral Annexes;
(b) exchange information concerning the implementation of the mandatory requirements specified in the Sectoral Annexes; and
(c) notify each other of any scheduled changes in their respective mandatory requirements as and when they are made.
4. Unless otherwise provided for, a Sectoral Annex concluded pursuant to paragraph 2 of this Article shall enter into force on the first day of the second month following the date on which the Parties have exchanged notes confirming the completion of their respective procedures for the entry into force of that Sectoral Annex.
5. A Party may terminate an MRA in its entirety by giving the other Party one year’s advance notice in writing unless otherwise stated in the relevant Sectoral Annex. However, a Party shall continue to accept the results of conformity assessment or equivalence for the duration of the one year notice period.
6. Where urgent problems of safety, health, consumer or environment protection or national security arise or threaten to arise for a Party, that Party may suspend the operation of any Sectoral Annex, in whole or in part, immediately. In such a case, the Party shall immediately advise the other Party of the nature of the urgent problem, the products covered and the objective and rationale of the suspension.
Chapter 6. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 6.1. Agreement on Trade Facilitation
The Parties recognise the TFA and shall give effect to the provisions of Section I of the TFA as per the implementation schedule of each Party. In the event of any inconsistency between the obligations set out in Section I of the TFA and the obligations set out in the other provisions of this Chapter, the latter shall prevail to the extent of the inconsistency.
Article 6.2. Advance Rulings
1. A Party shall issue an advance ruling, on an application of an exporter, importer or any person with respect to:
(a) the origin of goods;
(b) the tariff classification of a product; and
(c) the appropriate method or criteria, and the application therof, to be used for determining the customs value under a particular set of facts.
The issuing Party shall issue its determination within sixty (60) days on receipt of all necessary information.
2. The issuing Party shall apply an advance ruling issued by it under paragraph 1 of this Article. The customs administration of a Party shall establish a validity period for an advance ruling of not less than one (1) year from the date of its issuance.
3. The issuing Party may modify or revoke an advance ruling:
(a) if the ruling was based on an error of fact;
(b) if there is a change in the material facts or circumstances on which the ruling was based; or
(c) to conform with a judicial decision or a change in its domestic laws.
4. Each Party shall provide, in its domestic law, that any modification or revocation of an advance ruling shall be effective on the date on which the modification or revocation is issued, or on such later date as may be specified therein, and shall not be applied to importations of a good that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted in accordance with the terms and conditions of the advance ruling.
5. Where a Party modifies or revokes an advance ruling, it shall provide written notice to the applicant setting out the relevant facts and the basis for its decision. Where a Party revokes or modifies an advance ruling with retrospective effect, it may only do so where the advance ruling was based on incomplete, incorrect, false or misleading information.
6. An advance ruling issued by a Party shall be binding on that Party in respect of the applicant that sought it. The Party may provide that the advance ruling is binding on the applicant.
Article 6.3. Single Window
The Parties shall develop or maintain single window systems within the capability of that Party, to facilitate a single, electronic submission of all information required by customs and other legislation for the exportation, importation and transit of goods.
Article 6.4. Publication
1. The Parties shall promptly publish or otherwise make available, including through electronic means, the following information in a non-discriminatory and easily accessible manner, in order to enable interested parties to become acquainted with them:
(a) importation, exportation and transit procedures (including port, airport, and other entry-point procedures) and required forms and documents;
(b) applied rates of duties, and taxes of any kind imposed on or in connection with importation or exportation;
(c) rules for the classification or the valuation of products for customs purposes;
(d) laws, regulations and administrative rulings of general application relating to rules of origin;
(e) import, export or transit restrictions or prohibitions;
(f) fees and charges imposed on or in connection with importation, exportation or transit;
(g) penalty provisions against breaches of import, export or transit formalities;
(h) appeal procedures;
(i) agreements or parts thereof with any country or countries relating to importation, exportation or transit; and
(j) administrative procedures relating to the imposition of tariff quotas.
2. The information in paragraph 1 of this Article shall, to the extent practicable, be made available on the Internet in English.
3. The Parties shall designate or maintain one or more inquiry or information points to address inquiries by interested persons concerning customs and trade facilitation matters. Such inquiries shall be addressed in English.
Article 6.5. Temporary Admission of Goods
The Parties shall continue to facilitate the procedures for the temporary admission of goods traded between the Parties in accordance with the Customs Convention on the A.T.A. Carnet for the Temporary Admission of Goods and Article 10.9 (Temporary Admission of Goods meant for Inward and Outward Processing) of the TFA.
Article 6.6. Technical Co-operation
In order to enhance co-operation on customs matters, the Parties shall, inter alia:
(a) exchange information concerning their respective customs legislation, its
implementation, and customs procedures, particularly in the following areas:
(i) simplification and modernisation of customs procedures;
(ii) border enforcement of intellectual property rights by the customs authorities;
(iii) transit movements and transhipment; and
(iv) relations with the business community;
(b) consider developing joint initiatives relating to import, export and other customs procedures, as well as towards ensuring an effective service to the business community;
(c) work together on customs-related aspects of securing and facilitating the international trade supply chain; and
(d) strengthen co-ordination in international organisations such as the WTO and the World Customs Organization.
Article 6.7. Customs Contact Points
1. The Parties shall exchange lists of designated contact points for matters arising under this Chapter.
2. The contact points shall endeavour to resolve operational matters covered by this Chapter through consultations.
Article 6.8. Express Shipments
The Parties shall ensure efficient clearance of all shipments, while maintaining appropriate control and customs selection. In the event a Party’s existing system does not ensure efficient clearance, it should adopt procedures to expedite express shipments. Such procedures shall:
(a) provide for pre-arrival processing of information related to express shipments;
(b) permit, as a condition for release, the submission of a single document in the form that the Party considers appropriate, such as a single manifest or a single declaration, covering all of the goods in the shipment by an express service company, through, if possible, electronic means;
(c) minimise, to the extent possible, the documentation required for the release of express shipments; and
(d) allow, in normal circumstances, for an express shipment to be released within six (6) hours of the submission of necessary customs documentation.
Article 6.9. Risk Management
1. The Parties shall adopt or maintain a risk management system for assessment and targeting that enables its customs administration to focus its inspection activities on high-risk goods and that simplifies the clearance and movement of low-risk goods.
2. The Parties shall design and apply risk management in a manner as to avoid arbitrary or unjustifiable discrimination, or a disguised restriction on international trade.
3. The Parties shall base risk management on an assessment of risk through appropriate selectivity criteria. Such selectivity criteria may include, inter alia, the Harmonized System Code, nature and description of the goods, country of origin, country from which the goods were shipped, value of the goods, compliance record of traders, and type of means of transport.
Article 6.10. Pre-Arrival Processing
1. The Parties shall adopt or maintain procedures allowing for the submission of import documentation and other required information in order to begin processing prior to the arrival of goods with a view to expediting the release of goods upon arrival.
2. The Parties shall provide for advance lodging of documents in electronic format for pre-arrival processing of such documents. (1)
Article 6.11. Pre-Shipment Inspection
1. The Parties shall not require the use of pre-shipment inspections in relation to tariff classification and customs valuation.
2. Without prejudice to the rights of the Parties to use types of pre-shipment inspection not prohibited by paragraph 1 of this Article, the Parties shall endeavour not to introduce or apply new requirements for the use of pre-shipment inspections. (2)
Article 6.12. Post-Clearance Audit
1. With a view to expediting the release of goods, the Parties shall adopt or maintain post- clearance audits to ensure compliance with customs and other related laws and regulations.
2. The Parties shall select a person or a consignment for post-clearance audit in a risk- based manner, which may include appropriate selectivity criteria. The Parties shall conduct post-clearance audits in a transparent manner. Where conclusive results of a post-clearance audit have been achieved, the Party conducting the post-clearance audit shall, without delay, notify the person whose record was audited of the audit results, the person's rights and obligations, and the reasons for the audit results, wherever practicable.
3. The Parties shall, wherever practicable, use the result of post-clearance audit in applying risk management.