6. The implementation of electronic information exchange shall be divided into the following stages:
a) not later than two years from the date of entry into force of this Agreement the authorities involved shall establish trial electronic information exchange between individual customs authorities of the Parties which are responsible for the customs clearance of particular goods traded between the Parties. Such individual customs authorities and such particular goods shall be determined by the central customs authorities of the Parties in a protocol stipulated in paragraph 5 of this Article;
b) not later than three years from the date of entry into force of this Agreement electronic information exchange shall cover goods for which the trade flow between the Parties will have increased more than 20 percent from the date of entry into force of this Agreement; and
c) not later than five years from the date of entry into force of this Agreement central customs authorities of the Parties shall provide the application of electronic information exchange, covering all goods traded between the Parties, for all customs authorities concerned.
7. Any information exchanged in accordance with the provisions of this Article shall be treated as confidential and shall be used for customs purposes only.
8. The operation of electronic information exchange shall not hinder the application or establishment of any information exchange based on international obligations of the Parties.
Article 5.8. Publication
1. The competent authorities of each Party shall publish, on the internet or through any other appropriate media, the customs laws and regulations of such Party.
2. The competent authorities of each Party shall designate or maintain one or more enquiry points to process enquiries from interested persons concerning customs issues, and shall publish on the internet information concerning such enquiry points.
3. The competent authorities of a Party shall inform the competent authorities of the other Party of the contact information of the designated enquiry points.
4. To the extent possible, each Party shall publish in advance its laws and regulations of general application governing customs issues that it proposes to adopt and shall provide interested persons with an opportunity to comment before adopting such laws and regulations.
Article 5.9. Advance Rulings
1. Customs authorities of the Parties shall provide any applicant registered in the importing Party in writing with advance rulings in respect of tariff classification, origin of goods and any additional matter which a Party considers appropriate. The Parties shall endeavour to adopt or maintain the issuance of advance rulings in respect of the application of the method to be used for determining the customs value.
2. Each Party shall adopt or maintain procedures for advance rulings, which shall:
a) provide that the applicant may apply for an advance ruling before the importation of goods;
b) require that the applicant for an advance ruling provide a detailed description of the goods and all relevant information needed to process an advance ruling;
c) provide that its customs authority may, within 30 days from the date of application, request that the applicant provide additional information within a specified period of time;
d) provide that any advance ruling be based on the facts and circumstances presented by the applicant and any other relevant information available to its customs authority; and
e) provide that an advance ruling be issued to the applicant expeditiously, or in any case within 90 days from the date of the application or 60 days from the date of receipt of all necessary additional information.
3. A customs authority of a Party may reject requests for an advance ruling where the additional information requested by it in accordance with subparagraph c) of paragraph 2 of this Article is not provided within the specified period of time.
4. An advance ruling is valid for at least three years from the date of issuance, or such other period of time exceeding the specified period as required by the customs laws and regulations of the Parties.
5. A customs authority of a Party may modify or revoke an advance ruling:
a) upon a determination that the advance ruling was based on false or inaccurate information;
b) if there is a change in the customs laws and regulations consistent with this Agreement; or
c) if there is a change in material facts or circumstances on which the advance ruling is based.
6. Subject to confidentiality requirements, the customs authorities of the Parties shall publish advance rulings.
Article 5.10. Customs Valuation
The customs value of goods traded between the Parties shall be determined in accordance with the customs laws and regulations of the importing Party based on the provisions of Article VII of GATT 1994 and the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, in Annex 1A to the WTO Agreement.
Article 5.11. Tariff Classification
The Parties shall apply nomenclatures of goods based on the current edition of the Harmonized System to goods traded between them.
Article 5.12. Transit of Goods
The Parties may mutually recognise identification tools and documents applied by the Parties required for the control of goods and vessels as well as other means of transport in transit.
Article 5.13. Express Consignments
1. Customs authorities of the Parties shall provide expedited customs clearance for express consignments while maintaining appropriate customs control.
2. Express consignments shall be placed under the customs procedure in an expedited manner in accordance with the customs laws and regulations of the respective Party.
Article 5.14. Temporary Admission of Goods
In accordance with international standards, customs authorities of the Parties shall endeavour to facilitate the performance of customs operations for the customs procedure of temporary admission of goods.
Article 5.15. Inward Processing and Outward Processing
In accordance with international standards, customs authorities of the Parties shall endeavour to facilitate the performance of customs operations for temporary importation and exportation of goods for inward processing or outward processing.
Article 5.16. Confidentiality
All information provided in accordance with this Chapter, excluding statistics, shall be treated by the Parties as confidential in accordance with the respective laws and regulations of the Parties. It shall not be disclosed by the authorities of the Parties without the permission of the person or authority of the Party providing such information.
Article 5.17. Customs Agents (Representatives)
The customs laws and regulations of each Party shall enable declarants to submit their customs declarations without requiring mandatory recourse to the services of customs agents (representatives).
Article 5.18. Automation
1. The customs authorities of the Parties shall ensure that customs operations may be performed with the use of information systems and information technologies, including those based on electronic means of communication.
2. The central customs authorities of the Parties shall provide declarants with an opportunity to declare goods in electronic form.
Article 5. Review and Appeal
Each Party shall ensure the possibility of administrative review of customs decisions affecting rights of interested persons and judicial appeal against such decisions in accordance with the laws and regulations of the respective Party.
Article 5.20. Penalties.
Each Party shall adopt or maintain measures that allow for the imposition of administrative penalties for violations of its customs laws and regulations during importation and exportation, including provisions on tariff classification, customs valuation, determination of country of origin and obtaining preferential tariff treatment under this Agreement.
Chapter 6. TECHNICAL BARRIERS TO TRADE
Article 6.1. Objectives
The objectives of this Chapter are to facilitate trade in goods between the Parties by:
a) promoting cooperation on the preparation, adoption and application of standards, technical regulations and conformity assessment procedures in order to eliminate unnecessary technical barriers to trade, reduce, where possible, unnecessary costs to exporters;
b) promoting mutual understanding of each Party's standards, technical regulations and conformity assessment procedures;
c) strengthening information exchange between the Parties in relation to the preparation, adoption and application of standards, technical regulations and conformity assessment procedures;
d) strengthening cooperation between the Parties in the work of international bodies related to standardisation and conformity assessment;
e) providing a framework to realise these objectives; and
f) promoting cooperation on issues relating to technical barriers to trade.
Article 6.2. Scope
1. This Chapter shall apply to all standards, technical regulations and conformity assessment procedures of the Parties that may directly or indirectly affect the trade in goods between the Parties except:
a) purchasing specifications prepared by governmental bodies for production or consumption requirements of governmental bodies; and
b) sanitary or phytosanitary measures as defined in Chapter 7 (Sanitary and Phytosanitary Measures) of this Agreement.
2. In accordance with this Chapter and the TBT Agreement each Party has the right to prepare, adopt and apply standards, technical regulations and conformity assessment procedures.
Article 6.3. Definitions
For the purposes of this Chapter, the definitions set out in Annex 1 to the TBT Agreement shall apply, mutatis mutandis.
Article 6.4. Incorporation of the TBT Agreement
Except as otherwise provided for in this Chapter, the TBT Agreement shall apply between the Parties and is incorporated into and form part of this Agreement, mutatis mutandis.
Article 6.5. Transparency
1. The Parties acknowledge the importance of transparency with regard to the preparation, adoption and application of standards, technical regulations and conformity assessment procedures.
2. Each Party should provide the period for comments of at least 60 days following the publication of a notice of the kind envisaged in Articles 2.9 and/or 5.6 of the TBT Agreement, except for situations where urgent problems of safety, health, environmental protection or national security arise or threaten to arise for the Parties.
3. Each Party should allow at least 180 days from the adoption of a technical regulation and/or conformity assessment procedure and their/its entry into force, except for situations where urgent problems of safety, health, environmental protection or national security arise or threaten to arise for the Parties.
4. The Parties shall, to the fullest extent possible, endeavour to exchange information in the English language.
Article 6.6. Marking and Labelling
The Parties note that in accordance with paragraph 1 of Annex 1 to the TBT Agreement, a technical regulation may include or deal exclusively with marking or labelling requirements, and agree that where such technical regulation contains mandatory marking or labelling requirements, they will act in accordance with the principles of Article 2.2 of the TBT Agreement that technical regulations should not be prepared, adopted and applied with a view to, or with the effect of, creating unnecessary obstacles to international trade, and should not be more trade restrictive than necessary to fulfil a legitimate objective.
Article 6.7. Consultations
1. Where the day to day application of standards, technical regulations and conformity assessment procedures is affecting trade between the Parties, a Party may request consultations aimed at resolving the matter. A request for consultations shall be directed to the other Party's contact point established in accordance with Article 6.9 of this Agreement.
2. Each Party shall make every effort to give prompt and positive consideration to any request from the other Party for consultations on issues relating to the implementation of this Chapter.
3. Where a matter covered under this Chapter cannot be clarified or resolved as a result of consultations, the Parties may establish an ad hoc working group with a view to identifying a workable and practical solution that would facilitate trade. The working group shall comprise representatives of the Parties.
4. Where a Party declines a request from the other Party to establish a working group, it shall, upon request, explain the reasons for its decision.
Article 6.8. Cooperation
1. For the purposes of ensuring that standards, technical regulations and conformity assessment procedures do not create unnecessary obstacles to trade in goods between the Parties, the Parties shall, where possible, cooperate in the field of standards, technical regulations and conformity assessment procedures.
2. The cooperation pursuant to paragraph 1 of this Article may include the following:
a) holding joint seminars in order to enhance mutual understanding of standards, technical regulations and conformity assessment procedures in each Party;
b) exchanging officials of the Parties for training purposes;
c) exchanging information on standards, technical regulations and conformity assessment procedures;
d) strengthening cooperation in international fora, including international bodies related to standardisation and conformity assessment and the WTO Committee on Technical Barriers to Trade, in areas of mutual interest;
e) encouraging the bodies responsible for standards, technical regulations and conformity assessment procedures in each Party to cooperate on matters of mutual interest;
f) providing scientific and technical cooperation in order to improve the quality of technical regulations; and
g) making efficient use of regulatory resources.
3. The implementation of paragraph 2 of this Article shall be subject to the availability of appropriated funds and the respective laws and regulations of each Party.
4. Cooperation on issues relating to technical barriers to trade may be undertaken, inter alia, through dialogue in appropriate channels, joint projects and technical assistance.
5. The Parties may conduct joint projects, technical assistance and cooperation on standards, technical regulations and conformity assessment procedures in selected areas, as mutually agreed.
6. The Parties undertake to exchange views on matters of market surveillance and enforcement activities in the field thereof relating to technical barriers to trade.
7. Upon request, a Party shall give appropriate consideration to proposals that the other Party makes for cooperation under this Chapter.
8. In order to promote cooperation in the framework of this Chapter, the Parties may conclude ad hoc arrangements on the matters covered therein.
Article 6.9. Competent Authorities and Contact Points
1. The Parties shall designate competent authorities and contact points and exchange information containing the names of the designated competent authorities and contact points, contact details of relevant officials in such competent authorities and contact points, including telephone and facsimile numbers, email addresses and other relevant details.
2. The Parties shall promptly notify each other of any change to their competent authorities and contact points or amendment to the information of the relevant officials.
3. The contact points' functions shall include the following:
a) facilitating the exchange of information between the Parties on standards, technical regulations and conformity assessment procedures in response to all reasonable requests for such information from a Party; and
b) referring the enquiries from a Party to the appropriate regulatory authorities.
4. The competent authorities' functions shall include:
a) monitoring the implementation of this Chapter;
b) facilitating cooperation activities, as appropriate, in accordance with Article 6.8 of this Agreement;
c) promptly addressing any issue that a Party raises related to the preparation, adoption, application or enforcement of standards, technical regulations and conformity assessment procedures;
d) facilitating consultations on any matter arising under this Chapter upon request of a Party;
e) taking any other action that the Parties consider will assist them in implementing this Chapter; and
f) carrying out other functions as may be delegated by the Joint Committee.
Chapter 7. SANITARY AND PHYTOSANITARY MEASURES
Article 7.1. Objectives
The objectives of this Chapter are to facilitate trade in goods between the Parties by:
a) seeking to resolve issues relating to sanitary and phytosanitary measures while protecting human, animal or plant life or health in the territories of the Parties;
b) strengthening cooperation between the Parties and among their competent authorities including in the development and application of sanitary and phytosanitary measures as defined in the SPS Agreement; and
c) facilitating information exchange in the field of sanitary and phytosanitary measures and enhancing the knowledge and understanding of each Party's regulatory system.
Article 7.2. Scope
This Chapter shall apply to sanitary and phytosanitary measures of the Parties that may, directly or indirectly, affect trade between the Parties.
Article 7.3. Definitions
For the purposes of this Chapter:
a) the definitions set out in Annex A to the SPS Agreement shall apply, mutatis mutandis; and
b) the relevant definitions developed by the international organisations: the Codex Alimentarius Commission, the World Organization for Animal Health (hereinafter referred to as "OIE") and international and regional organisations operating within the framework of the International Plant Protection Convention (hereinafter referred to as "IPPC") shall apply in the implementation of this Chapter, mutatis mutandis.
Article 7.4. Incorporation of the SPS Agreement
Except as otherwise provided for in this Chapter, the SPS Agreement shall apply between the Parties and is incorporated into and form part of this Agreement, mutatis mutandis.
Article 7.5. Equivalence
1. The Parties recognise that equivalence is an important means to facilitate trade.
2. The Parties may recognise equivalence of a measure, a group of measures or a system to the extent feasible and appropriate.
Article 7.6. Adaptation to Regional Conditions
1. The Parties recognise the concept of adaptation to regional conditions, including pest- or disease-free areas and areas of low pest or disease prevalence, as an important means to facilitate trade.
2. When determining such areas, the Parties shall consider factors such as information of the Parties confirming the status of pest- or disease-free areas and areas of low pest or disease prevalence, the results of an audit, inspection monitoring, information provided by OIE and IPPC and other factors.
Article 7.7. Audit and Inspections
1. Each Party may carry out an audit and/or inspection in order to ensure the safety of the products (goods).
2. The Parties agree to enhance further their cooperation in the field of audits and inspections.
3. In undertaking audits and/or inspections, each Party shall take into account relevant international standards, guidelines and recommendations.
4. The auditing or inspecting Party shall provide the audited or inspected Party the opportunities to comment on the findings of the audits and/or inspections.
5. Costs incurred by the auditing or inspecting Party shall be borne by the auditing or inspecting Party, unless both Parties agree otherwise.
Article 7.8. Documents Confirming Safety
1. Where a document is required to confirm safety of the products (goods) traded between the Parties, the exporting Party shall ensure compliance with the requirements of the importing Party. The importing Party shall ensure the requirements of the documents for confirming safety of the products (goods) traded between the Parties are applied only to the extent necessary to protect human, animal or plant life or health.
2. The Parties shall take into account relevant international standards, guidelines and recommendations, when developing the documents for confirming safety of the products (goods), as appropriate.
3. The Parties may agree to develop bilateral documents for confirming safety of specific product (good) or groups of products (goods) traded between the Parties.
4. The Parties shall promote the use of electronic technologies in the documents for confirming safety of the products (goods) in order to facilitate trade.
Article 7.9. Emergency Measures
1. Where a Party adopts emergency measures necessary to protect human, animal or plant life or health, such Party shall as soon as possible notify such measures to the other Party. The Party that adopted the emergency measures shall take into consideration relevant information provided by the other Party.
2. Upon request of either Party, consultations of the relevant competent authorities regarding the emergency measures shall be held as soon as possible unless otherwise agreed by the Parties.
Article 7.10. Contact Points and Information Exchange
1. The Parties shall notify each other of the contact points for the provision of information in accordance with this Chapter and of their designated competent authorities responsible for matters covered by this Chapter and the areas of responsibility of such competent authorities.
2. The Parties shall inform each other of any change to their contact points or any significant change in the structure or competence of their competent authorities.
3. The Parties, through their contact points, shall provide each other in a timely manner with a written notification of:
a) any significant food safety issue or change in animal or plant health, disease or pest status in their territories; and
b) any change to the legal frameworks or other sanitary or phytosanitary measures.
4. The Parties, through their contact points, shall inform each other of systematic or significant cases of non-compliance of sanitary and phytosanitary measures and exchange relevant documents which confirm this non-compliance.