Title
Free Trade Agreement Central America - Dominican Republic
Preamble
The Government of the Republic of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic,
Determined to
Strengthen ties of friendship and spirit of cooperation between their peoples;
To achieve a better balance in their trade relationship;
Promote an expanded and secure market for goods produced and mutual exchange of services in their territories;
Increasing the competitiveness of the services sector, requirement sine qua non for the facilitation of trade in goods and the flow of capital and technology, contribute decisively to consolidate the competitiveness of countries in the Free Trade Area;
Reduce distortions in their reciprocal trade;
Establish a legal system with clear rules, transparent and mutually beneficial for the promotion and protection of investment and trade in goods and services;
Respecting their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization (WTO) Agreement and other bilateral and multilateral instruments of cooperation and integration;
Strengthen the competitiveness of their enterprises in global markets;
The protection of intellectual property rights;
Creating job opportunities and the improvement of living standards in their respective territories;
To promote economic development in a manner consistent with the protection and conservation of the environment and sustainable development;
Preserving its ability to safeguard the public welfare;
Promoting the active participation of the various economic operators, in particular the private sector, in efforts to deepen their economic relations; and
Improve the negotiation capacity of the Parties in the commercial forums in which they participate jointly;
Celebrate the Present Free Trade Agreement Central America-Dominican Republic
General provisions
Body
Part I. General Provisions
Chapter I. Initial Provisions
Article 1.01. Establishment of the Free Trade Area
The parties establish a free trade area in accordance with Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and article V of the General Agreement on Trade in Services (GATS) of the WTO Agreement.
Unless otherwise provided in this Treaty shall apply between the Dominican Republic and each of the Central American countries individually.
Article 1.02. Objectives
The main objectives of this Treaty is as follows:
Encourage expansion and diversification of trade in goods and services between the parties;
Promote conditions of fair competition in the Free Trade Area;
Reciprocally eliminate barriers to trade in goods and services originating in the Parties;
Eliminating barriers to the movement of capital and business persons between
The territories of the Parties;
Increase investment opportunities in the territories of the Parties;
Promotion and protection of investments to subject the advantages offered by the markets of the Parties and to strengthen the competitiveness of the signatory countries in the world trade flows; and
Create effective procedures for the implementation and application of this Treaty, for its joint administration and for the resolution of disputes.
The Parties shall interpret and apply the provisions of this Treaty in the light of the objectives set out in paragraph 1 and in accordance with applicable rules of international law.
Article II. General Definitions
Article 2.01. Definitions of General Application
For purposes of this Treaty, unless otherwise specified:
WTO Agreement: Agreement Establishing the World Trade Organization;
Good: the goods or national products as understood in GATT 1994 either originates or not;
Originating good: it refers to a good which complies with the rules of origin set out in chapter IV (rules of origin);
Customs valuation code: it means the Agreement on Implementation of article VII GATT 1994, including its interpretative notes;
Council: the Joint Council of Administration established in accordance with article 18.01;
Days: Calendar days;
Tariff: the percentage breakdown of a code of tariff classification of the harmonized system for more than six digits;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, as defined in annex 1A to the Marrakesh Agreement Establishing the World Trade Organization;
Measure: it means any law, regulation, provision or administrative procedure, practice, among others;
National: it means a natural person who has the nationality of a Party according to its legislation;
NAD: Dominican tariff nomenclature, based on the Harmonized Commodity Description and Coding System of goods with tariff openings, used by the Dominican Republic;
Party: any State which has consented to be bound by this Treaty and with respect to which the treaty is in force.
Exporting Party: the Party from whose territory goods or services are exported;
Importing Party: means the party into whose territory goods or services are imported;
Person: it means a natural or legal person;
Legal person: means any legal entity duly constituted or organized under the applicable law, with or non-profit, whether public, private or mixed;
SAC: the Central American tariff system used by the member states of the Central American Economic Integration Treaty, based on the Harmonized Commodity Description and Coding System of goods;
Secretarial: the secretariat established under article 18.02;
Harmonized System (HS): it means the Harmonized Commodity Description and Coding System (HS), including its general rules of classification and their legal notes and explanatory notes;
Territory: means the territory of each party.
Part II. Provisions Relating to Trade and Investment
Chapter III. National Treatment and Access to the Market of Goods
Article 3.01. Definitions
For purposes of this chapter:
Tariff: any customs duty or charge imposed on imports and any charge of any kind imposed in connection with the importation of goods, including any form of surtax or surcharge on imports, except:
Any charge equivalent to an internal tax established in accordance with Article III.2 of GATT 1994 or any equivalent provision of a successor agreement to which the parties are party;
Any quota or right originated in the imposition of measures against unfair trade practices or application of safeguard measures;
Any duty or other charge in connection with importation commensurate with the cost of services rendered;
Any exchange difference taken by any of the Parties.
Article 3.02. Coverage
This chapter shall apply to trade in goods between the parties.
For the purposes of this chapter, in case of any inconsistency between the provisions and any other provision of this Treaty, the rules of this chapter will prevail.
Article 3.03. National Treatment
Each Party shall accord National Treatment to goods of the other Party in accordance with article III GATT 1994 and any equivalent provision of a successor agreement to which all are contracting parties, which are incorporated into this Agreement and form an integral part thereof.
The provisions of paragraph 1 means with respect to a party, including its departments, municipalities and provinces, treatment no less favourable than the most favourable treatment that party, including its departments, municipalities and provinces, grant to any similar goods, direct competitors or replacement of national origin.
Article 3.04. Liberalization of Trade In Goods
From the entry into force of this Treaty, the parties undertake to ensure access to their respective markets through the total elimination of customs duties on primary goods, except those contained in the annex of this article.
Notwithstanding paragraph 1, Nicaragua may apply the Customs Tariff component shown in column ATP of its tariff and eliminated as from 1 January 1999, except for the products specified in the annex to this article.
The parties agree that upon the request of any party, consultations to discuss the possibility of eliminating the Customs Tariff to goods contained in the annex to this article will be made.
Article 3.05. Restrictions to the Refund of Import Customs Duties on Goods Exported and Deferral of Tariffs
The Parties shall apply their domestic legislation governing on refund of import customs duties on goods exported and on programmes of deferral of customs duties in accordance with its rights and obligations under the World Trade Organization.
Article 3.06. Customs Valuation
The customs value of an imported good shall be determined in accordance with the domestic legislation of the importing country, while it adopts the Customs Valuation Code of GATT 1994.
Notwithstanding the above, from the entry into force of this Treaty, no party shall apply reference prices or minimum prices for purposes of customs valuation of primary goods.
Article 3.07. Restrictions on Imports and Exports
With the exception of the Rights of the Parties in accordance with Article XX of the GATT 1994 and those covered in chapter VI (sanitary and phytosanitary measures) and chapter XIII (Technical Barriers to Trade) of this Treaty, the parties undertake to ensure access to their respective markets through the immediate and complete elimination of non-tariff barriers.
Unless otherwise specified in other chapters of this treaty, neither party may adopt or maintain a prohibition or restriction on the importation of any good of the other party or on the exportation for sale or export of any good destined for the territory of another party, except as provided in article XI of the GATT 1994. To this end article XI of the GATT 1994 or any equivalent provision of a successor agreement to which they belong the parties are incorporated into this Agreement and form an integral part thereof.
In the event that a party adopts or maintains prohibitions or restrictions on the importation of goods originating of another party, shall demonstrate to the other party that these measures are consistent with the WTO Agreement.
Article 3.08. Rights of Customs Formalities and Consular Rights
Neither party shall increase customs duties in respect of service provided by the customs and eliminate such duties on goods originating from the entry into force of this Treaty, except those permitted under the WTO Agreement.
Neither party will charge consular fees or require consular formalities on goods originating from the entry into force of this Treaty.
Article 3.09. Country of Origin
The annex to this article applies to measures relating to the country of origin policies.
Article 3.10. Support, Domestic Support and Export Subsidies
The Parties confirm their rights and obligations under the WTO Agreement in the area of support, domestic support and export subsidies.
Article 3.11. Notification and Publication
Each Party shall publish and shall notify the other party within a period no greater than forty (40) days from the date of entry into force of this Treaty, measures in respect of laws, regulations, judicial decisions, administrative regulations and procedures of general application that has entered into force and are linked to the requirements of this chapter.
To the extent possible, each of the Parties shall publish and notify the other party of any measure referred to in paragraph 1 that it proposes to adopt interested party; and provide a reasonable opportunity to comment on such proposed measures.
The provisions of this article do not require any party to disclose confidential information which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interests of public or private enterprises.
Each Party, at the request of the other Party shall provide information and reply promptly to any question relating to existing measures or project, without prejudice to the Party concerned has been previously notified of that measure.
Article 3.12. Committee on Trade In Goods
The Council shall establish a Committee on Trade in Goods comprising representatives of each party. The Committee shall meet at least once a year.
Chapter IV. Rules of Origin
Article 4.01. Definitions
For the purposes of this chapter:
Chapter: refers to the first breakdowns of sections identified by the two digits in the Harmonized Commodity Description and Coding System (HS) or the Central American tariff system (SAC) or the tariff nomenclature (NAD);
CIF: it is an international acronym which means insurance, cost and freight;
Customs valuation code means the Agreement on Implementation of article VII of GATT 1994, including its interpretative notes;
FOB : international acronym which means in spanish free on board (LAB). It applies to all means of transport;
Import: entry of goods in the territory of a Party for use or consumption after fulfilment of customs formalities;
Materials or products: goods used in the production of another goods. The Parties included;
Goods means any material, product or a part may be sold;
Fungible goods: goods interchangeable for commercial purposes and whose properties are essentially identical that it is impractical to differentiate by a mere visual examination by another;
Identical goods: equal goods in all its aspects, including physical characteristics, quality and reputation, trademark, where the minor differences of aspects not impede consideration as identical;
Indirect goods: any material or product, which is not physically incorporated into a good used in the production, verification and inspection of goods, operation of related equipment or maintenance of buildings. Includes:
Fuel and energy; catalysts and solvents;
b) equipment and devices used for testing or inspecting the goods;
Gloves, spectacles, footwear, clothing, equipment and security devices;
Tools, moulds and dies;
Renovation or spare parts and materials used in the maintenance of equipment and buildings;
Lubricants, fats, composite products and other products used in the production, operation of equipment or maintenance of buildings;
Any other matters or product that is not incorporated into the good but is properly documented as part of that production;
Similar goods: goods that although not alike in all respects, has similar characteristics and compositions, particularly as regards quality and reputation, enabling them to perform the same functions and commercially interchangeable;
Goods, material, product or native goods: a material or product that qualifies as originating under this chapter;
Heading: refers to the identified by contain breakdowns of chapters at the 4-digit HS SAC nad; or
Generally accepted accounting principles means the principles used in the territories of the Parties, to confer substantial authoritative support with respect to the recording of income, expenditure, assets and liabilities involved in information and the preparation of financial statements. These indicators may be broad guidelines of general application as well as those standards and practices usually employed in the accounting procedures;
Production: the cultivation, production, harvesting, the birth and upbringing, fishing, hunting, manufacture, processing or assembling electrical goods;
Producer: natural or legal person who invests it extracts, harvest, breeding animals born in its country and products obtained therefrom; fishing, hunting, manufacture, processing or assembles a good;
The transaction value of a good means the price actually paid or payable for a good. For the purposes of determining the transaction value shall apply the law in force in the parties.
Article 4.02. Origin Criteria
It is understood that a good is considered as originating in the Parties to this treaty if it has been wholly obtained in any of their territories or when non-originating goods are incorporated shall be a degree of processing.
Article 4.03. Determination, Certification and Verification of Origin
The determination of the origin of the goods and the corresponding certification and verification procedures shall be made in accordance with this chapter.
Article 4.04. Scope
The scope of application of the rules of origin and its amendments are limited to exchange of goods governed by the provisions of this Treaty.
Article 4.05. Core Principles for the Determination of Origin When Incorporating Materials or Not Originating Products
The rules of origin of this chapter are based on the general principle of change in tariff classification accompanied, where necessary, with other requirements as specified in this chapter and annex.
Article 4.06. Means of Implementation
For the purposes of this article, the classification of goods is SA and for those goods codified more than six digit the NAD or the SAC.
In determining the transaction value of a good shall be applided the law in force in each of the Parties.
Article 4.07. Originating Goods
Are considered originating goods from the territory of a party:
Products and by-products obtained entirely in a party:
Live animals born and raised in that party. "Animal" means all live animals, including mammals, birds, fish, crustaceans, molluscs, reptiles and viruses, bacteria;
Animals obtained from hunting, fishing, trapping and gathering or capturing in the party. It also covers animals obtained in the nature of the Parties;
Products obtained from live animals in that party. It includes among others; products obtained from live animals without further elaboration, including milk, eggs natural honey;
Plants and plant products harvested or gathered in that party. It includes inter alia, including any vegetation, cuttings, fruit, vegetables, flowers, seed trees, seaweeds, fungi and live plants floods in the Parties;
Mineral and other sustances arise naturally, it does not included in the above definitions, extracted or taken in the Party; includes inter alia: salt; marine mineral raw sulphur arising in the Free State, natural sands, clays, stones, ores, crude oil, natural gas, bituminous minerals, natural land, natural waters, natural mineral water;
Waste and scrap resulting from manufacturing or processing operations or from consumption in the Party and fit only for disposal or for the recovery of raw materials. It covers all waste and scrap, including those resulting from manufacturing or processing operations or consumption in the same party machinery, defective packaging discarded waste, and all products that can no longer fulfil the purpose for which they were produced and fit only for disposal or for the recovery of raw materials. such operations means from the other manufacture chemical, industrial or mining, agriculture, construction, refined copper and sewage treatment;