Title
Costa Rica - Singapore Free Trade Agreement
Preamble
The Government of the Republic of Costa Rica and the Government of the Republic of Singapore, hereinafter in this Agreement referred to as "the Parties",
Recognizing the friendship and growing economic ties between them;
Aware of the increasing importance of trade and investment for the future prosperity of the economies of the Asia Pacific region ;
Desiring to contribute to the harmonious development and expansion of world trade and provide a catalyst to broader international cooperation;
Reaffirming their willingness to strengthen and reinforce the multilateral trading system as reflected in the World Trade Organization and other multilateral, regional and bilateral agreements and arrangements to which they are both parties;
Resolving to create an expanded and secure market for the goods and services produced in their territories and conscious that open, transparent and competitive markets are the key drivers of economic efficiency, innovation, wealth creation and consumer welfare;
Seeking to avoid distortions to their reciprocal trade;
Desiring to strengthen their economic partnership to bring economic and social benefits to their people and improve living standards ;
Willing to ensure a predictable commercial framework for business planning and investment;
Determined to create a legal framework for an economic partnership between the Parties;
Seeking to facilitate trade by promoting efficient and transparent customs procedures that reduce costs and ensure predictability for their importers and exporters;
Desiring to foster creativity and innovation, and promote trade in goods and services that are the subject of intellectual property rights;
Recognizing the importance of transparency in international trade;
Seeking to implement this Agreement in a manner consistent with environmental protection and conservation, and sustainable development, Have agreed as follows:
Body
Chapter 1. Initial Provisions and General Definitions
Section A. Initial Provisions
Article 1.1. Establishment of a Free Trade Area
The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994 and Article V of the General Agreement on Trade in Services, hereby establish a free trade area.
Article 1.2. Objectives
1. The objectives of this Agreement are to:
(a) encourage expansion and diversification of trade between the Parties;
(b) facilitate trade in goods and services;
(c) establish comprehensible rules in order to ensure a predictable and transparent environment for trade in goods and services between the Parties;
(d) promote conditions of fair competition in the free trade area;
(e) increase investment opportunities in the territories of the Parties;
(f) ensure an adequate and effective protection of intellectual property rights in the territories of the Parties, taking into consideration the economic situation and the social or cultural need of each country;
(g) confirm their commitment to the promotion of trade and reaffirm their aspiration to achieve an appropriate balance between the economic, social and environmental components of sustainable development;
(h) create effective procedures for the implementation and application of this Agreement, for its joint administration, and for the resolution of disputes; and
(i) establish a framework for further bilateral cooperation to expand and enhance the benefits of this Agreement.
2. The Parties shall interpret and apply the provisions of this Agreement in the light of its objectives set out in paragraph 1 and in accordance with applicable rules of international law.
Article 1.3. Relation to other Agreements
1. The Parties reaffirm their existing rights and obligations with respect to each other under the WTO Agreement and other existing agreements to which both Parties are party.
2. In the event of any inconsistency between this Agreement and the agreements referred to in paragraph 1, this Agreement shall prevail to the extent of the inconsistency, except as otherwise provided in this Agreement.
Section B. General Definitions
Article 1.4. Definitions of General Application
For purposes of this Agreement, unless otherwise specified:
central level of government means
(a) for Costa Rica, the national level of government; and
(b) for Singapore, the national level of government;
chapters, headings and subheadings refers to the first two digits in the case of chapters, first four digits in the case of headings and first six digits in the case of subheadings, used in the classification of the Harmonized System (HS);
Commission means the Free Trade Commission established under Article 16.1 (The Free Trade Commission);
customs authority means the competent authority that is responsible under the law of a Party for the administration of customs laws and regulations;
customs duties includes any duty or charge of any kind imposed in connection with the importation of a good, including any form of surtax or surcharge in connection with such import, but does not include any: (a) charge equivalent to an internal tax imposed consistently with Article III.2 of GATT 1994, such as excise duties and sales tax (1) ;
(b) antidumping or countervailing duty imposed pursuant to a Party's domestic law and consistently with Chapter 7 (Trade Remedies); or
(c) fee or other charge in connection with importation commensurate with the cost of services rendered and which does not represent a direct or indirect protection for domestic goods or a taxation of imports for fiscal purposes;
Customs Valuation Agreement means the WTO Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994;
days means calendar days;
existing means in effect on the date of entry into force of this Agreement;
GATS means the WTO General Agreement on Trade in Services;
GATT 1994 means the WTO General Agreement on Tariffs and Trade 1994;
goods of a Party means domestic products as these are understood in GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, and Chapter Notes, as adopted and implemented by the Parties in their respective tariff laws;
local level of government means
(a) for Costa Rica, the municipalities; and
(b) for Singapore, entities with sub-national legislative or executive powers under domestic law, including Town Councils and Community Development Councils;
measure includes any law, regulation, procedure, requirement, or practice;
national means a natural person who has the nationality of a Party according to Article 1.5 (Country-Specific Definitions) or a permanent resident of a Party;
originating means qualifying under the rules of origin set out in Chapter 3 (Rules of Origin);
Party means any State for which this Agreement is in force;
person means a natural person or an enterprise;
person of a Party means a national or an enterprise of a Party;
preferential tariff treatment means the duty rate applicable under this Agreement to an originating good;
Safeguards Agreement means the WTO Agreement on Safeguards;
sanitary or phytosanitary measure means any measure referred to in Annex A, paragraph 1, of the SPS Agreement;
SPS Agreement means the WTO Agreement on the Application of Sanitary and Phytosanitary Measures;
TBT Agreement means the WTO Agreement on Technical Barriers to Trade; territory means for a Party the territory of that Party as set out in Article 1.5 (Country-Specific Definitions);
TRIPS Agreement means the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights;
WTO means the World Trade Organization; and WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on 15 April 1994.
Article 1.5. Country-specific Definitions
For purposes of this Agreement, unless otherwise specified:
1. national means:
(a) with respect to the Republic of Costa Rica, a Costa Rican as defined in Articles 13 and 14 of the Constitución Política de la República de Costa Rica (Political Constitution of the Republic of Costa Rica);
(b) with respect to the Republic of Singapore, any person who is a citizen of Singapore within the meaning of its Constitution and its domestic laws.
2. territory means:
(a) with respect to the Republic of Costa Rica, the national territory including air and maritime space, where the State exercises complete and exclusive sovereignty or special jurisdiction in accordance with Articles 5 and 6 of the Constitución Política de la República de Costa Rica and international law;
(b) with respect to the Republic of Singapore, its land territory, internal waters and territorial sea, as well as any maritime area situated beyond the territorial sea which has been or might in the future be designated under its national law, in accordance with international law, as an area within which Singapore may exercise sovereign rights or jurisdiction with regards to the sea, the sea-bed, the subsoil and the natural resources.
Chapter 2. Trade In Goods
Article 2.1. Scope and Coverage
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Article 2.2. Definitions
For purposes of this Chapter:
advertising films and recordings means recorded audio/visual or audio media designed to advertise or promote goods or services by any person having an established business or resident in the territory of a Party, excluding such media for broadcast to the general public;
commercial samples of negligible value means commercial samples having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount in the currency of the other Party, or so marked, torn, perforated, or otherwise treated that they are unsuitable for sale or for use except as commercial samples;
consular transactions means requirements that goods of a Party intended for export to the territory of the importing Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas for commercial invoices, certifications of origin, manifests, shippers' export declarations, or any other customs documentation required on or in connection with importation;
duty-free means free of customs duty;
goods intended for display or demonstration includes their component parts, ancillary apparatus, and accessories;
goods admitted for sports purposes means sports equipment for use in sports contests, events, or training in the territory of the Party into whose territory such goods are admitted; and
printed advertising materials means those goods classified in chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks of trade associations, tourist promotional materials, and posters, that are used to promote, publicize, or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge.
Article 2.3. National Treatment
1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994.
2. To this end, Article III of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.4. Elimination of Customs Duties
1. The provisions of this Chapter concerning the elimination of customs duties on imports shall apply to goods originating in the territories of the Parties.
2. Except as otherwise provided in this Agreement, each Party shall eliminate its customs duties on originating goods in accordance with Annex 2.1 (Elimination of Customs Duties).
3. During the customs duties elimination process, the Parties shall apply to originating goods traded between them, the lesser of the customs duties resulting from a comparison between the rates established in accordance with Annex 2.1 (Elimination of Customs Duties) and the existing rate pursuant to Article II of GATT 1994.
4. Each Party shall not increase an existing customs duty, introduce a new customs duty or impose an additional customs duty to that determined under paragraph 2, on the importation of originating goods.
5. Each Party shall refrain from applying any measure that reduces or nullifies the commitments of this Chapter.
6. The tariff classification of goods in trade between the Parties shall be governed by the national nomenclature of each Party, which shall be consistent with the Harmonized System.
Article 2.5. Accelerated Customs Duties Elimination
1. On the request of a Party, the Parties shall consult to consider accelerating the elimination of customs duties on originating goods as set out in Annex 2.1 (Elimination of Customs Duties).
2. An agreement by the Parties to accelerate the elimination of customs duties on originating goods shall enter into force after the Parties have exchanged written notifications informing that they have completed necessary internal legal procedures and on such date or dates as may be agreed between them.
3. A Party may at any time accelerate unilaterally the elimination of customs duties on originating goods of the other Party set out in Annex 2.1 (Elimination of Customs Duties). A Party considering doing so shall inform the other Party as early as possible.
Article 2.6. Export Taxes
A Party shall not adopt or maintain any duty, tax or other charge on the exportation of goods to the territory of the other Party, except as provided in Annex 2.2 (Export Taxes).
Article 2.7. Customs Valuation
The Parties shall determine the customs value of goods traded between them in accordance with the provisions of Article VII of GATT 1994 and the Customs Valuation Agreement.
Article 2.8. Administrative Fees and Formalities
Each Party shall ensure, in accordance with Article VIII.1 of GATT 1994, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax imposed consistently with Article III.2 of GATT 1994, and antidumping and countervailing duties imposed pursuant to a Party's domestic law and consistently with Chapter 7 (Trade Remedies)) imposed on or in connection with import or export are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation on imports or exports for fiscal purposes.
Article 2.9. Consular Fees
1. Neither Party shall require consular transactions, including related fees and charges, in connection with the importation of any good of the other Party.
2. Each Party shall make available and maintain through the Internet a current list of the fees and charges it imposes in connection with importation or exportation.
Article 2.10. Temporary Admission of Goods
1. With the exception of liquor and tobacco products, each Party shall grant duty-free temporary admission for the following goods, regardless of their origin, imported by or for the use of a national or resident of the other Party:
(a) professional equipment, including equipment for the press or television, software, and broadcasting and cinematographic equipment, necessary for carrying out the business activity, trade, or profession of a person who qualifies for temporary entry pursuant to the laws of the importing Party;
(b) goods intended for display or demonstration;
(c) commercial samples and advertising films and recordings; and
(d) goods admitted for sports purposes.
2. Each Party, at the request of the person concerned and for reasons its customs authority considers valid, shall extend the time limit for temporary admission beyond the period initially fixed.
3. Neither Party shall condition the duty-free temporary admission of a good referred to in paragraph 1, other than to require that such good:
(a) be used solely by or under the personal supervision of a national or resident of the other Party in the exercise of the business activity, trade, profession, or sport of that person;
(b) not be sold or leased or consumed while in its territory;
(c) be accompanied by a security in an amount no greater than the charges that would otherwise be owed on entry or final importation, releasable upon exportation of the good;
(d) be capable of identification when admitted and exported;
(e) be exported on the departure of the person referenced in subparagraph (a), or within such other period that is reasonably related to the purpose of the temporary admission, as the Party may establish;
(f) be admitted in no greater quantity than is reasonable for its intended use; and
(g) be otherwise admissible into the Party's territory under its law.
4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the final importation of the good plus any other charges or penalties provided for under its domestic law.
5. Each Party, through its customs authority, shall adopt procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, such procedures shall provide that when such a good accompanies a national or resident of the other Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national or resident.
6. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than that through which it was admitted.
7. Each Party shall provide that its customs authority or other competent authority relieve the importer or other person responsible for a good admitted under this Article from any liability for failure to export the good on presentation of satisfactory proof to the importing Party's customs authority that the good has been destroyed within the original period fixed for temporary admission or any lawful extension.
Article 2.11. Goods Re-entered after Repair or Alteration
1. Neither Party shall apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in the territory of the Party from which the good was exported for repair or alteration.
2. A Party shall not apply a customs duty to a good regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.
3. For purposes of this Article, repair or alteration does not include an operation or process that:
(a) destroys a good's essential characteristics or creates a new or commercially different good; or
(b) transforms an unfinished good into a finished good.
Article 2.12. Duty-free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials
With the exception of liquor and tobacco products, each Party shall grant duty-free entry to commercial samples of negligible value, and to printed advertising materials, imported from the territory of the other Party, regardless of their origin, but may require that:
(a) such samples be imported solely for the solicitation of orders for goods or services provided from the territory of the other Party or a non-Party; or
(b) such advertising materials be imported in packages that each contain no more than one copy of each such material and that neither such materials nor packages form part of a larger consignment.
Article 2.13. Import and Export Restrictions
1. Neither Party shall adopt or maintain any non-tariff measures that prohibit or restrict the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except in accordance with its WTO rights and obligations, or in accordance with other provisions of this Agreement.
2. Each Party shall ensure that such measures are not adopted or applied with a view to or with the effect of creating unnecessary obstacles to trade between the Parties.
Article 3.1. Definitions
For purposes of this Chapter: