4. If no reply is received within the periods mentioned above, or if the reply does not contain sufficient information to determine the authenticity of the documents or the originating status of the goods in question, the requesting customs authorities may deny preferential tariff treatment.
Article 44. Denial of Preferential Tariff Treatment
Except as otherwise provided in this Chapter, the importing Party may deny claim for preferential tariff treatment, if:
(a) the goods do not meet the requirements of this Chapter;
(b) the importer, exporter or producer fails to comply with the relevant requirements of this Chapter; or
(c) the Certificate of Origin or the Declaration of Origin does not meet the requirements of this Chapter.
Article 45. Contact Points
Each Party shall designate contact points to ensure the effective and efficient implementation of this Chapter.
Chapter 4. Customs Procedures and Trade Facilitation
Article 46. General Principles
1. The Parties recognise their common objectives of serving the interests of their respective business communities and creating a trading environment allowing them to take advantage of the opportunities offered by this Agreement.
2. The Parties agree that the following principles, inter alia, are the basis for the development and administration by competent authorities, of trade facilitation measures:
(a) transparency, efficiency, simplification, harmonisation and consistency of trade procedures;
(b) promotion of international standards;
(c) consistency with multilateral instruments;
(d) the best possible use of information technology;
(e) high standard of public service in the interest of their respective business communities;
(f) governmental controls based on risk management principles;
(g) co-operation within each Party among customs and other border authorities;
(h) consultations with their respective business communities; and
(i) assurance of trade security and facilitation.
Article 47. Co-operation
While recognising the need for strengthening co-operation in multilateral fora and for applying the procedures in the major instruments governing trade facilitation to which both Parties are signatories, the Parties affirm their commitment to the use of efficient trade procedures aiming to reduce costs and unnecessary delays in the trade between them.
Article 48. Transparency
1. Each Party shall promptly publish on the Internet, as far as practicable in English, all laws, regulations and rules of general application relevant to trade in goods between the Parties.
2. Each Party shall establish inquiry points for customs and other matters covered under this Chapter that may be contacted as far as practicable in English via the Internet.
3. The Parties shall consult their respective business communities on their needs with regard to the development and implementation of trade facilitation measures, noting that particular attention should be given to the interests of small and medium-sized enterprises.
4. Each Party shall publish in advance, and in particular on the Internet, draft laws and regulations of general application relevant to international trade, with a view to affording the public, especially interested persons, an opportunity to provide comment on them.
5. Each Party shall ensure that a reasonable interval is provided between the publication of laws and regulations of general application relevant to international trade in goods and their entry into force.
6. Each Party shall administer in a uniform, impartial and reasonable manner all its laws, regulations, rules and administrative decisions relevant to international trade in goods.
Article 49. Advance Rulings
1. Each Party shall in a reasonable, time-bound manner, upon written request, issue a binding, written advance ruling, which contains all information necessary to an importer, exporter or producer that has registered with the Party's customs administration as required by its domestic laws, before the date of importation of a product , with regard to:
(a) tariff classification of the product;
(b) the rules of origin that the Party will apply to the product; and
(c) such other matters as the Parties may agree.
2. A Party that declines to issue an advance ruling shall promptly notify the requesting importer, producer or exporter in writing, setting forth the basis for its decision.
3. Each Party shall provide that advance rulings take effect on the date they are issued, or on another date specified in the ruling, provided that the facts or circumstances on which the ruling is based remain unchanged.
4. Each Party may limit the validity of advance rulings to a period determined by domestic legislation.
5. Each Party shall endeavour to make information on advance rulings, which it considers to be of significant interest to other traders, publicly available, taking into account the need to protect confidential information.
Article 50. Customs Valuation
The Parties shall apply Article VII of the GATT 1994 and the Agreement on Implementation of Article VII of the General Agreement on Tariff and Trade 1994 to goods traded between them.
Article 51. Tariff Classification
The Parties shall apply the International Convention on the Harmonised Commodity Description and Coding System to goods traded between them.
Article 52. Simplification of Customs Procedures
1. Each Party's customs procedures shall be simple, reasonable, objective and impartial.
2. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties.
3. The Parties shall limit controls, formalities and the number of documents required in the context of trade in goods between the Parties to those necessary and appropriate to ensure compliance with legal requirements and thereby simplify to the greatest extent possible the respective procedures.
4. Pursuant to paragraph 3, each Party shall adopt or maintain procedures that:
(a) provide for advance electronic submission and processing of information before the physical arrival of goods subject to the satisfaction of certain conditions or requirements, to expedite their clearance;
(b) may allow importers to obtain the release of goods prior to meeting all import requirements of that Party if the importer provides sufficient and effective guarantees and where it is decided that neither further examination, physical inspection nor any other submission is required. A Party is not required to release goods where the Party's legitimate import requirements have not been satisfied; and
(c) provide for a guarantee to be discharged without delay once it is no longer required.
5. Each Party shall base its procedures for trade in goods and related services to the greatest extent possible on internationally agreed standards that are applied by each Party respectively, aiming to reduce costs and unnecessary delays in trade between them, in particular the standards and recommended practices of the World Customs Organisation (hereinafter referred to as "the WCO"), including the principles of the revised International Convention on the Simplification and Harmonisation of Customs Procedures (Revised Kyoto Convention).
Article 53. Risk Management
1. In the application of customs control, the Parties shall use risk management. Each Party shall determine which persons and which goods, including means of transport, should be examined, and the extent of the examination based on current risk assessments. The Parties shall adopt a compliance measurement strategy to support risk management. This shall not preclude the Parties from conducting quality control and compliance reviews which may require more extensive examinations.
2. Each Party shall focus measures of control on high-risk goods and facilitate the clearance of low-risk goods in administering customs procedures.
3. Each Party's customs procedures, including its documentary examinations, physical examinations or post-audit examinations, shall not be more onerous than necessary to limit the Party's exposure to the risks referred to in paragraph 2.
Article 54. Application of Information Technology
The Parties shall apply information technology to support customs operations, where it is cost-effective and efficient, particularly in the paperless trading context, taking into account developments in this area within the WCO.
Article 55. Authorised Economic Operator System
A Party operating an Authorised Economic Operator System or security measures affecting international trade flows shall:
(a) afford the other Party the possibility to negotiate a mutual recognition of authorisation and security measures for the purpose of facilitating international trade while ensuring effective customs control; and
(b) draw on relevant international standards, in particular the WCO Framework of Standards.
Article 56. Temporary Admission of Goods
1. Each Party shall facilitate temporary admission of goods in accordance with its domestic laws and regulations and international standards that are applied by each Party respectively.
2. For the purposes of this Article, "temporary admission" means customs procedures under which certain goods may be brought into a customs territory conditionally relieved from payment of customs duties. Such goods shall be imported for a specific purpose, and shall be intended for re-exportation within a specified period and without having undergone any change except normal depreciation due to the use made of them.
Article 57. Review and Appeal
Each Party shall ensure that importers, exporters and producers have the right to at least one level of independent administrative review and judicial appeal in accordance with its domestic legislation.
Article 58. Border Agency Co-operation
Each Party shall ensure co-operation and co-ordination in the procedures of its authorities and agencies involved in border enforcement and import and export controls in order to facilitate trade.
Article 59. Confidentiality
All information provided in relation to importation, exportation or other related matters shall be treated as confidential by the Parties and shall be covered by the obligation of professional secrecy, in accordance with the respective laws of each Party. Such information shall not be disclosed by the authorities of a Party without the express permission of the person or authority providing the information.
Article 60. Consultation
1. Either Party may request consultations on matters arising from the operation or implementation of this Chapter. Such consultations shall be conducted through the relevant contact points, designated by the Parties. Information on contact points shall be provided to the other Party, who shall be notified promptly of any amendments of the said information.
2. With the objective of developing further steps to facilitate trade under this Agreement, the Parties shall establish and notify each other, as appropriate, identify and submit, for the consideration of the FTA Joint Commission established under Chapter 10, further measures aimed at facilitating trade between the Parties, such as, inter alia, the following:
(a) general measures to facilitate trade;
(b) official controls;
(c) transport;
(d) the promotion and use of standards;
(e) the use of computers and EDI;
(f) the availability of information;
(g) customs operations in general;
(h) customs and other official procedures concerning means of transport and transport equipment, including containers;
(i) official requirements for imported goods;
(j) customs clearance of exports;
(k) the origin of goods;
(l) transhipment of goods;
(m) goods in international transit;
(n) commercial trade practices;
(o) advance rulings;
(p) customs brokers;
(q) payment procedures; and
(r) such other matters as the Parties may agree.
3. The FTA Joint Commission will review relevant international initiatives on trade facilitation, to identify areas where further joint action would promote their common objectives.
Article 61. Definitions
For the purposes of this Chapter:
(a) "customs administration" means:
(i) in relation to China, the General Administration of Customs, the People's Republic of China; and
(ii) in relation to Iceland, the Directorate of Customs, Iceland.
(b) "customs law" means the statutory and regulatory provisions of a Party relating to the importation, exportation, movement or storage of goods, the administration and enforcement of which are specifically charged to the Customs, and any regulations made by the Customs under their statutory powers;
(c) "customs procedures" means the treatment applied by the customs administration of a Party to goods and the means of transport that are subject to that Party's customs law; and
(d) "means of transport" means various types of vessels, vehicles, aircraft and pack-animals which enter or leave the territory carrying persons, goods or articles.
Chapter 5. Competition
Article 62. Rules of Competition
1. The Parties recognise that anti-competitive business conduct may frustrate the benefits arising from this Agreement. Such conduct is therefore incompatible with the proper functioning of this Agreement in so far as it may affect trade between the Parties.
2. This Chapter also applies to undertakings with privilege and exclusive rights authorised by law. Such application shall not prevent the above undertakings from fulfilling their legal functions.
3. The provisions of this Chapter shall not be construed to create any legally binding obligations for the undertakings and are also without prejudice to the independence of the Parties' competition authorities according to their respective competition laws.
4. The Parties undertake to apply their respective competition laws with a view to removing anti-competitive business conduct. The co-operation between the Parties may include the exchange of information in accordance with the respective laws and regulations of the Parties, as well as their confidentiality obligations.
5. The competition authorities of the Parties shall co-operate and consult on matters pertaining to this Chapter.
6. Any dispute under this Chapter shall be settled through consultation between the Parties. Neither Party may have recourse to dispute settlement mechanism under this Agreement in respect of any issue arising from or relating to this Chapter.
Chapter 6. Intellectual Property Rights
Article 63. General Provisions
1. The Parties recognise the importance of intellectual property rights in promoting economic and social development, particularly in the new digital economy, technological innovation and trade, as well as the need to achieve a balance between the rights of right holders and the legitimate interests of users and the community with regard to protected subject matter.
2. For the purpose of this Chapter, the term "intellectual property rights" refers to copyright and related rights, rights in trademarks, geographical indications, industrial designs, patents, undisclosed information, layout designs of integrated circuits, and rights in plant varieties as defined in the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (hereinafter referred to as "the TRIPS Agreement").
3. Each Party shall establish and maintain transparent intellectual property rights regimes and systems that:
(a) provide certainty over the protection and enforcement of those rights against infringement, including counterfeiting and piracy;
(b) minimise compliance costs for business; and
(c) facilitate international trade through the dissemination of ideas, technology and creative works.
Article 64. International Conventions
Each Party reaffirms its obligation to the TRIPS Agreement, which is hereby incorporated into and made part of this Agreement. The Parties also reaffirm their obligations set out in the following multilateral agreements relating to intellectual property rights to which both are parties:
(a) Paris Convention of 20 March 1883 for the protection of Industrial Property, as revised by the Stockholm Act of 1967 (referred to as the "Paris Convention");
(b) Berne Convention of 9 September 1886 for the protection of Literary and Artistic Works, as revised by the Paris Act of 1971 (referred to as the "Berne Convention");
(c) Patent Cooperation Treaty of 19 June 1970, as revised by the Washington Act of 2001;
(d) Budapest Treaty of 28 April 1977 on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure;
(e) Protocol of 27 June 1989 relating to the Madrid Agreement concerning the International Registration of Marks; and
(f) Nice Agreement of 25 June 1957 Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks, as revised by the Geneva Act of 1979.
Article 65. Co-operation and Exchange of Information
1. The Parties aim to further strengthen their co-operation in the field of intellectual property rights in general. The Parties may co-operate in the following fields, inclusively but not exclusively:
(a) the exchange of information, experience and views on issues of common concern relating to intellectual property rights;
(b) the exchange of information concerning the protection and enforcement of intellectual property rights;
(c) personnel training and the information systems on intellectual property rights;
(d) the promotion of mutual understanding of each Party's policy, activities and experiences in the field of intellectual property rights;
(e) the promotion of education on and awareness of intellectual property rights; and
(f) other activities and initiatives as may be mutually determined by the Parties.
2. Each Party shall designate a contact point or points within 60 days of the entry into force of this Agreement to facilitate communications between the Parties on any matter covered by this Chapter, and provide details of such contact points to the other Party. The Parties shall promptly notify each other of any amendments to the details of their contact points.
3. The designated contact points shall be responsible for the exchange of information pursuant to paragraph 1.
Article 66. Dialogue and Review
1. A Party may at any time request dialogue with the other Party, with a view to seeking a timely and mutually satisfactory resolution of any intellectual property issue within the scope of this Chapter. Unless the Parties agree otherwise, such dialogue shall be conducted through the Parties' designated contact points within 60 days of the receipt of the request for dialogue. Only in the case that such dialogue fails to resolve any such issue a Party can take actions pursuant to Chapter 11.
2. Notwithstanding paragraph 1, after the commencement of such dialogue, if a Party considers that the dialogue fails to resolve the issue, it may take actions pursuant to Chapter 11 after notifying the other Party of such a decision.
3. The Parties agree, upon request of any Party to the FTA Joint Commission established under Chapter 10 and subject to both Parties' and the FTA Joint Commission's consensus, to review the provisions of this Chapter, with a view to further improving the levels of protection and to ensure the good functioning of the provisions of this Chapter.
Chapter 7. Trade In Services
Article 67. Scope and Coverage
1. This Agreement applies to measures by the Parties affecting trade in services taken by central, regional or local governments and authorities as well as by non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities.
2. This Agreement shall not apply to:
(a) services supplied in the exercise of governmental authority within the territory of each Party; or
(b) regulations or requirements governing the procurement by governmental agencies of services purchased for governmental purposes and not with a view to commercial resale or with a view to use in the supply of services for commercial sale.
3. This Chapter does not apply to measures affecting air traffic rights or measures affecting services directly related to the exercise of air traffic rights, except as provided for in paragraph 3 of the GATS Annex on Air Transport Services.
Article 68. Incorporation of Provisions from the Gats
Wherever a provision of this Chapter provides that a provision of the GATS is incorporated into and made part of this Chapter, the meaning of the terms used in the GATS provision shall be understood as follows:
(a) "Member" shall mean "Party", except that "among Members" shall mean "among Members of the WTO";
(b) "Schedules" shall mean the Schedules referred to in Article 84 and contained in Annex VII; and