(b) the Trade and Development Committee may make any recommendation with a view to seeking an acceptable solution needed to remedy the circumstances which have arisen. If no recommendation has been made by the Trade and Development Committee, or no other satisfactory solution has been reached within thirty (30) days of the matter being referred to the Trade and Development Committee, the SACU Member State concerned or Mozambique may adopt measures in accordance with this Article;
(c) in the application of measures pursuant to paragraph 1, priority must be given to those which least disturb the operation of this Agreement; and
(d) any measure taken pursuant to this Article shall be notified immediately to the Trade and Development Committee and shall be the subject of periodic consultations within that body.
5. In critical circumstances where delay would cause damage which would be difficult to repair, the SACU Member State concerned or Mozambique may take measures provided for in paragraph 1 ona provisional basis without complying with the requirements of paragraph 4. Such measures may be taken for a maximum period of two hundred (200) days. The duration of any such provisional measure shall be counted as part of the period referred to in paragraph 3. In taking such provisional measures, the interest of all parties involved shall be taken into account. The importing SACU Member State concerned or Mozambique shall inform the UK, and it shall immediately refer the matter to the Trade and Development Committee for the examination of such provisional measures.
6. SACU Member States shall have the right to have recourse to Article 26 of the SACU Agreement.
Chapter III. NON-TARIFF MEASURES
Article 39. Prohibition of Quantitative Restrictions
The Parties may apply quantitative restrictions provided such restrictions are applied in conformity with the WTO Agreement.
Article 40. National Treatment on Internal Taxation and Regulation
1. The Parties recognise that internal taxes and other internal charges, and laws, regulations and requirements affecting the internal sale, offering for sale, purchase, transportation, distribution or use of products, and internal quantitative regulations requiring the mixture, processing or use of products in specified amounts or proportions, should not be applied to imported or domestic products so as to afford protection to domestic production.
2. Imported products originating in the other Party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products. Moreover, the Parties shall not otherwise apply internal taxes or other internal charges to imported or domestic products in a manner contrary to the principles set forth in paragraph 1. (4)
3. Imported products originating in the other Party shall be accorded treatment no less favourable than that accorded to like domestic products of national origin in respect ofall laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use. The provisions of this paragraph shall not prevent the application of differential internal transportation charges which are based exclusively on the economic operation of the means of transport and not on the nationality of the product.
4. The Parties shall not establish or maintain any internal quantitative regulation relating to the mixture, processing or use of products in specified amounts or proportions which requires, directly or indirectly, that any specified amount or proportion of any product which is the subject of the regulation must be supplied from domestic sources. Moreover, Parties shall not otherwise apply internal quantitative regulations in a manner contrary to the principles set forth in paragraph 1.
5. No internal quantitative regulation relating to the mixture, processing or use of products in specified amounts or proportions shall be applied in such a manner as to allocate any such amount or proportion among external sources of supply.
6. The provisions of this Article shall not apply to laws, regulations or requirements governing the procurement by governmental agencies of products purchased for governmental purposes and not with a view to commercial resale or with a view to use in the production of goods for commercial sale.
7. The provisions of this Article shall not prevent the payment of subsidies exclusively to domestic producers, including payments derived from the proceeds of internal taxes or charges applied consistently with the provisions of this Article and subsidies effected through governmental purchases of domestic products.
8. The Parties recognise that internal maximum price control measures, even though conforming to the other provisions of this Article, can have effects prejudicial to the interests of Parties supplying imported products. Accordingly, Parties applying such measures shall take account of the interests of exporting Parties with a view to avoiding to the fullest practicable extent such prejudicial effects.
9. The provisions of this Article shall not prevent any Party from establishing or maintaining internal quantitative regulations relating to exposed cinematograph films and meeting the requirements of Article IV of the GATT 1947.
Chapter IV. CUSTOMS AND TRADE FACILITATION
Article 41. Objectives
The objectives of this Chapter are to:
(a) reinforce cooperation in the area of customs and trade facilitation with a view to ensuring that the relevant legislation and procedures, as well as the administrative capacity of the customs authorities, fulfil the objectives of effective control and the promotion of trade facilitation;
(b) promote harmonisation of customs legislation and procedures;
(c) ensure that legitimate public policy objectives, including those related to security and the prevention of fraud in the area of customs and trade facilitation, shall not be compromised in any way; and
(d) provide the necessary support for the SACU Member States' and Mozambique's customs administrations to effectively implement this Agreement.
Article 42. Customs and Administrative Cooperation
1. In order to ensure compliance with the provisions of this Chapter and effectively respond to the objectives laid down in Article 41, the Parties shall:
(a) exchange information on customs legislation and procedures;
(b) develop joint initiatives relating to customs and trade facilitation and the strengthening of administrative capacity;
(c) exchange experience and best practices on combating corruption and fraud in matters relating to this Chapter;
(d) exchange experience and best practices on issues relating to import, export and transit procedures and to improving the service to the business community;
(e) exchange experience and best practices on facilitating transit;
(f) facilitate the exchange of experts between customs administrations; and
(g) promote coordination between all related agencies, both internally and across borders.
2. The Parties shall prepare and develop an enhanced cooperation on the implementation of the World Customs Organisation ("WCO") Framework of Standards to Secure and Facilitate Global Trade of 2005. This cooperation shall include initiatives in view of working towards the mutual recognition of the Authorised Economic Operator status and the exchange of advance information to allow an effective risk assessment and management for security purposes.
3. The Parties shall provide mutual administrative assistance in customs matters in accordance with the provisions of Protocol 2.
Article 43. Customs Legislation and Procedures
1. The Parties agree that their respective trade and customs legislation and procedures shall to the extent possible be based on:
(a) the Revised Kyoto Convention on the Simplification and Harmonization of Customs Procedures of 1999, the substantive elements of the WCO Framework of Standards to Secure and Facilitate Global Trade, the International Convention on the Harmonised System and other international instruments and standards applicable in the field of customs and trade;
(b) the need to protect and facilitate legitimate trade;
(c) the need to avoid unnecessary and discriminatory burdens on economic operators, the need to safeguard against fraud and corruption and the need to provide further facilitation for operators that meet high level of compliance;
(d) the need for each Party to apply a single administrative document or electronic equivalent;
(e) the application of modern customs techniques, including risk assessment, simplified procedures for entry and release of goods, post release controls, and company audits;
(f) transparency, efficiency and proportionality, in order to reduce costs and increase predictability for economic operators;
(g) the need for non-discrimination in terms of requirements and procedures applicable to import, export and goods in transit, though it is accepted that consignments might be treated differently according to objective risk assessment criteria;
(h) the progressive development of systems, including those based upon information technology, for both export and import operations, to facilitate the exchange of information between economic operators, customs administrations and other agencies;
(i) the adoption of systems that facilitate the importation of goods through the use of simplified customs procedures and processes, including pre-arrival clearance;
(j) the elimination of any requirements for the mandatory use of pre- shipment inspections as defined by the WTO Agreement on Preshipment Inspection, or their equivalent;
(k) the application of rules that ensure that any penalties imposed for minor breaches of customs regulations or procedural requirements are proportionate and, in their application, do not give rise to undue delays in customs clearance;
(l) a system of binding rulings on customs matters, in particular on tariff classification and rules of origin, in accordance with rules laid down in their respective legislation;
(m) the facilitation of transit movements;
(n) the elimination of all requirements for the mandatory use of customs brokers; and
(o) transparent, non-discriminatory and proportionate rules in respect of the licensing of customs brokers.
2. In order to improve working methods and to ensure transparency and efficiency of customs operations, the Parties shall:
(a) ensure that the highest standards of integrity be maintained, through the application of anti-corruption measures in this field;
(b) take further steps towards the reduction, simplification and standardisation of data in the documentation required by customs and other related agencies;
(c) simplify requirements and formalities wherever possible, in respect of the rapid release and clearance of goods;
(d) provide effective, prompt and non-discriminatory procedures enabling the right of appeal, against customs and other agency administrative actions, rulings and decisions affecting imports, exports or goods in transit. Procedures for appeal shall be easily accessible, including to small or medium enterprises; and
(e) create an environment for the effective enforcement of legislative requirements.
Article 44. Facilitation of Transit Movements
1. The Parties shall ensure freedom of transit through their territory via the route most convenient for transit. Any controls or requirements must be non- discriminatory, proportionate and applied uniformly.
2. Without prejudice to legitimate customs control, the Parties shall accord to traffic in transit treatment no less favourable than that accorded to domestic goods, exports and imports, and their movement.
3. The Parties shall:
(a) operate bonded transport regimes that allow the transit of goods without payment of duties or other charges, subject to the provision of an appropriate guarantee;
(b) promote and implement regional transit arrangements;
(c) use international standards and instruments relevant to transit; and
(d) promote coordination between all concerned agencies, both internally and across borders.
Article 45. Relations with the Business Community
The Parties agree to:
(a) ensure that all customs legislation, procedures and fees and charges are made publicly available, as well as whenever possible the necessary explanations, and as far as possible through electronic means;
(b) consult, as far as possible, timely and regularly with trade representatives on legislative proposals and procedures related to customs and customs related trade issues;
(c) introduce, where appropriate, new or amended legislation and procedures and their entry into force in a way to allow traders to become well prepared for complying with them. The Parties shall make publicly available relevant notices of an administrative nature, including agency requirements and entry procedures, hours of operation and operating procedures for customs offices at ports and border crossing points, and points of contact for information enquiries; and
(d) foster cooperation between operators and relevant administrations through the use of instruments such as memoranda of understanding.
Article 46. Customs Valuation
1. The Agreement on Implementation of Article VII of the GATT 1994 ("WTO Agreement on Customs Valuation") shall govern customs valuation rules applied to trade covered by this Agreement.
2. The Parties shall cooperate with a view to reaching a common approach to issues relating to customs valuation.
Article 47. Harmonisation of Customs Standards at Regional Level
1. The Parties shall promote harmonisation of customs legislation, procedures, standards and requirements.
2. Each Party shall determine the content and pace of this process.
Article 48. Support to the SACU Member States' and Mozambique's Customs Administrations
1. The Parties recognise the importance of supporting the SACU Member States' and Mozambique's customs administrations for the implementation of this Chapter, in line with the provisions of Chapter III of PART I.
2. The priority areas for such support are:
(a) the application of modern customs techniques, including:
(i) risk management;
(ii) post release controls; and
(iii) automation of customs procedures;
(b) control of customs valuation, classification and rules of origin, including in view of meeting the requirement of Article 43(1)(j);
(c) the facilitation of transit and the enhancement of the efficiency of regional transit arrangements;
(d) transparency issues relating to the publication and administration of all trade regulations, as well as relevant fees and formalities;
(e) the introduction and implementation of procedures and practices which reflect international instruments and standards applicable in the field of customs and trade, inter alia the revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures and the WCO Framework of Standards to Secure and Facilitate Global Trade.
3. The Parties recognise the need for specific needs assessment studies taking into account the situation in each country, using WTO and WCO needs assessment instruments or any other mutually agreed instrument.
Article 49. Transitional Arrangements
1. The Parties recognise the need for transitional arrangements to ensure the smooth implementation of the provisions of this Chapter.
2. In view of the need to enhance their capacity in the area of customs and trade facilitation and without prejudice to their WTO rights and obligations, the SACU Member States and Mozambique shall benefit from a transitional period of eight (8) years to meet those requirements referred to in Articles 27, 43, 44, and 45 where the need for capacity building exists at the time of entry into force of this Agreement.
3. The Joint Council may decide to extend this transitional period by two (2) years in case the necessary capacity has not yet been attained.
Article 50. Special Committee on Customs and Trade Facilitation
1. The Parties hereby establish a Special Committee on Customs and Trade Facilitation, composed of representatives of the Parties.
2. The functions of the Special Committee on Customs and Trade Facilitation shall include:
(a) monitoring the implementation and administration of this Chapter and of Protocol I;
(b) providing a forum to consult and discuss all issues concerning customs, including rules of origin, general customs procedures, customs valuation, tariff classification, transit and mutual administrative assistance in customs matters;
(c) enhancing cooperation on the development, application and enforcement of rules of origin and related customs procedures, general customs procedures and mutual administrative assistance in customs matters;
(d) enhancing cooperation on capacity building and technical assistance;
(e) following up on the implementation of Article 47;
(f) determining its own rules of procedure; and
(g) addressing any other issues agreed by the Parties in respect of this Chapter.
3. The Special Committee on Customs and Trade Facilitation shall meet on a date and with an agenda agreed in advance by the Parties.
4. The Special Committee on Customs and Trade Facilitation shall be chaired alternately by either Party.
5. The Special Committee on Customs and Trade Facilitation shall report to the Trade and Development Committee.
Chapter V. TECHNICAL BARRIERS TO TRADE
Article 51. Multilateral Obligations
1. The Parties affirm their commitment to the rights and obligations provided for in the Agreement on Technical Barriers to Trade ("WTO TBT Agreement").
2. Those rights and obligations shall underlie the activities of the Parties under this Chapter.
Article 52. Objectives
The Parties agree to:
(a) cooperate in order to facilitate and increase trade in goods between them, by identifying, preventing and eliminating unnecessary barriers to trade within the terms of the WTO TBT Agreement;
(b) cooperate in strengthening regional, and specifically the SACU Member States' and Mozambique's integration and cooperation on matters concerning TBT; and
(c) establish and enhance the SACU Member States' and Mozambique's technical capacity on matters concerning TBT.
Article 53. Scope and Definitions
1. The provisions of this Chapter shall apply to standards, technical regulations, and conformity assessment procedures as defined in the WTO TBT Agreement in so far as they affect trade covered by this Agreement.
2. For the purposes of this Chapter, the definitions used by the WTO TBT Agreement shall apply.
Article 54. Collaboration and Regional Integration
The Parties agree that collaboration between national and regional authorities dealing with matters concerning TBT, in both the public and private sector, is important to facilitate trade in the region and between the Parties, as well as for the overall process of regional integration and undertake to cooperate to this end.
Article 55. Transparency
1. The Parties reaffirm the principle of transparency in the application of technical regulations and standards in accordance with the WTO TBT Agreement.
2. The Parties recognise the importance of effective mechanisms for consultation, notification and exchange of information with respect to technical regulations and standards in accordance with the WTO TBT Agreement.
3. The Parties agree to establish an early warning mechanism to ensure that the SACU Member States and Mozambique are informed in advance of new measures of the UK that may affect SACU Member States' and Mozambique's exports to the UK. The Parties shall make optimal use of existing mechanisms and avoid unnecessary duplications to multilateral or unilateral mechanisms.
Article 56. Measures Related to Technical Barriers to Trade
The Parties agree to identify and implement mechanisms among those supported by the WTO TBT Agreement that are the most appropriate for particular priority issues or sectors. Such mechanisms may include:
(a) intensifying their collaboration to facilitate access to their respective markets, by increasing the mutual knowledge and understanding of their respective systems in the field of technical regulations, standards, metrology, accreditation and conformity assessment;
(b) exchanging information, identifying and implementing appropriate mechanisms for particular issues or sectors, ie. alignment with international standards, reliance on the supplier's declaration of conformity, the use of internationally recognised accreditation to qualify conformity assessment bodies and the use of international product testing and certification schemes;
(c) identifying and organising sector-specific interventions on standards, technical regulations and conformity assessment procedures to facilitate understanding of and access to their respective markets. These sectors will be chosen taking into account key areas of trade, including priority products;
(d) developing cooperation activities and measures with a view to supporting the implementation of the rights and obligations under the WTO TBT Agreement;
(e) developing common views and approaches on technical regulatory practices, including transparency, consultation, necessity and proportionality, the use of international standards, conformity assessment requirements, the use of impact and risk assessment, enforcement and market surveillance, where appropriate;
(f) promoting harmonisation, whenever possible and in areas of mutual interest, towards international standards, and the use of such standards in the development of technical regulations and conformity assessment procedures;
(g) undertaking to consider, in due course, negotiating mutual recognition agreements in sectors of mutual economic interest;
(h) promoting collaboration between the Parties' organisations responsible for technical regulations, metrology, standardisation, testing, certification, inspection and accreditation; and
(i) promoting the participation by the SACU Member States and Mozambique in international standards-setting bodies.
Article 57. Role of the Trade and Development Committee on TBT Matters
The Parties agree that the Trade and Development Committee shall be competent to:
(a) monitor and review the implementation of this Chapter;
(b) provide coordination and consultation on TBT matters;
(c) identify and review priority sectors and products and the resulting priority areas for cooperation;
(d) make recommendations for modifications of this Chapter if necessary and appropriate; and
(e) address any other issues agreed by the Parties in respect of this Chapter.
Article 58. Capacity Building and Technical Assistance
1. The Parties recognise the importance of cooperating in the areas of technical regulations, standards, metrology, accreditation and conformity assessment in order to achieve the objectives of this Chapter.
2. The Parties agree that the following are priority areas for cooperation:
(a) the establishment of appropriate arrangements for the sharing of expertise, including appropriate training to ensure adequate and enduring technical competence of the relevant standardisation and conformity assessment bodies of the SACU Member States and Mozambique and mutual understanding between such bodies in the territories of the Parties;
(b) the development of capacities of the SACU Member States and Mozambique in the fields of technical regulations, metrology, standards, accreditation and conformity assessment including through the upgrading or setting up of laboratories and other equipment. In this regard, the Parties acknowledge the importance of strengthening regional cooperation and the need to take into account priority products and sectors;