Title
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN UNITED ARAB EMIRATES AND GEORGIA
Preamble
PREAMBLE Georgia and the United Arab Emirates hereinafter being referred to individually as a "Party" and collectively as "the Parties";
RECOGNISING the strong economic and political ties between Georgia and the UAE, and wishing to strengthen these links through the creation of a free trade area, thus establishing close and lasting relations;
DETERMINED to build on their respective rights and obligations under the Marrakesh Agreement establishing the World Trade Organization;
CONSCIOUS of the dynamic and rapidly changing global environment brought about by globalisation and technological progress that presents various economic and strategic challenges and opportunities to the Parties;
DETERMINED to develop and strengthen their economic and trade relations through the liberalisation and expansion of trade in goods and services in their common interest and for their mutual benefit;
AIMING to promote transfer of technology and expand trade;
CONVINCED that the establishment of a free trade area will provide a more favourable climate for the promotion and development of economic and trade relations between the Parties in areas of their common interest on the basis of equality, mutual benefit, and nondiscrimination, in conformity with international and domestic law;
AIMING to facilitate trade by promoting efficient and transparent customs procedures and ensure predictability for their importers and exporters;
DETERMINED to support the growth and development of their enterprises by enhancing their competitiveness in global markets and benefit from the opportunities created by this Agreement;
AIMING to establishing a clear, transparent, and predictable legal and commercial framework for business planning, that supports further expansion of trade and investment;
RECOGNISING their inherent right to regulate and resolved to preserve the flexibility of the Parties to set legislative and regulatory priorities, and protect legitimate public welfare objectives, such as health, safety, environmental protection, conservation of living and nonliving exhaustible natural resources, integrity and stability of the financial system, and public morals, in accordance with the rights and obligations provided in this Agreement;
HAVE AGREED, in pursuit of the above, to conclude the following Agreement (hereinafter referred to as this "Agreement"):
Body
Chapter I. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. General Definitions
For the purposes of this Agreement:
Agreement means Comprehensive Economic Partnership Agreement between Georgia and the UAE;
Agreement on Agriculture means the Agreement on Agriculture in Annex 1 A to the WTO Agreement;
Anti-Dumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 in Annex IA to the WTO Agreement;
Customs duty refers to 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 importation, but does not include any:
(a) charge equivalent to an internal tax imposed in conformity with Article III of the GATT 1994;
(b) anti-dumping or countervailing duty that is applied consistently with the provisions of Article VI of the GA TT 1994, the Agreement on the Implementation of Article VI of the GATT 1994 and the Agreement on Subsidies and Countervailing Measures in Annex I A to the WTO Agreement; or
(c) fees or other charges in connection with importation commensurate with the cost of services that is rendered in conformity with subparagraph 1 (a) of the Article VIII of the GATT 1994;
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex IA to the WTO Agreement;
Days means calendar days, including weekends and holidays;
DSU means the Understanding on Rules and Procedures Governing the Settlement of Disputes in Annex 2 to the WTO Agreement;
GATS means the General Agreement on Trade m Services m Annex I 8 to the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 in Annex 1 A to the WTO Agreement;
GPA means the Agreement on Government Procurement in Annex 4 to the WTO Agreement;
Harmonized System or (HS) means the Harmonized Commodity Description and Coding System, including its General Rules for the Interpretation, Section Notes, Chapter Notes and Subheading Notes;
Import Licensing Agreement means the Agreement on Import Licensing Procedures m Annex I A to the WTO Agreement;
Joint Committee means the Joint Committee established pursuant to Article 1 7.1 of this Agreement;
Measure means any measure, whether in form of a law, regulation, rule, procedure, decision, practice, administrative action, or any other form;
Safeguards Agreement means the Agreement on Safeguards in Annex lA to the WTO Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures in Annex I A to the WTO Agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex IA to the WTO Agreement;
TBT Agreement means the Agreement on Technical Barriers to Trade in Annex IA to the WTO Agreement;
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1 C to the WTO Agreement;
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh, 15 April 1 994.
Article 1.2. Establishment of a Free Trade Area
The Parties hereby establish a free trade area, in conformity with Article XXIV of the GATT 1994 and Article V of the GATS.
Article 1.3. Objectives
The objectives of this Agreement are to liberalise and facilitate trade and investment between the Parties in accordance with the provisions of this Agreement.
Article 1.4. Geographical Scope
This Agreement shall apply:
(a) With regard to Georgia, to the entire territory of Georgia as defined by Georgian legislation, including the land territory, its subsoil and the air space above it, internal waters and territorial sea, the sea bed, its subsoil and the air space above them, in respect of which Georgia exercises sovereignty, as well as the contiguous zone, the exclusive economic zone and continental shelf adjacent to its territorial sea, in respect of which Georgia exercises its sovereign rights and/or jurisdiction in accordance with international law; and
(b) With regard to the UAE, to its land territories, including its free zones, internal waters, territorial sea, including, the seabed and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which UAE has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with international law.
Article 1.5. Relation to other Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which both Parties are party.
2. In the event of any inconsistency between this Agreement and other agreements to which both Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
Article 1.6. Local Government
1. Each Party shall take such reasonable measures as may be available to it under its legislation to ensure observance of the provisions of this Agreement by the local governments and authorities where applicable within its territories.
2. This provision is to be interpreted and applied in accordance with the principles set out in paragraph 12 of Article XXIV ofthe GATT 1994 and paragraph 3 of Article I ofthe GATS.
Article 1.7. Transparency
1. Each Party shall publish, or otherwise make publicly available, its laws and regulations, as well as its respective international agreements which may affect the operation of this Agreement.
2. Without prejudice to Article 1.8 (Confidential Information), each Party shall promptly respond to specific questions and provide, upon request, information to the other Party on matters referred to in paragraph 1.
Article 1.8. Confidential Information
1. Each Party shall, in accordance with its domestic laws and regulations, maintain the confidentiality of information designated as confidential by the other Party.
2. Nothing in this Agreement shall require a Party to disclose confidential information, or the disclosure of which would impede law enforcement of the Party, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of any economic operator.
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 the purposes of this Chapter:
Customs authorities means the authorities that, according to the legislation of each Party, is responsible for the administration and enforcement of customs laws and regulations of the Party. In the case of Georgia, it shall be the Legal Entity of Public Law Revenue Service of the Ministry of Finance; in the case of the UAE, it shall be the Federal Authority for Identity, Citizenship, Customs & Port Security; and
Import licensing means an administrative procedure requmng the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party.
Article 2.3. National Treatment on Internal Taxation and Regulation
The Parties shall accord national treatment in accordance with Article III of the GATT 1994, including its interpretative notes. To this end, Article III of the GATT 1994 and its interpretative notes are incorporated into and form part of this Agreement, mutatis mutandis.
Article 2.4. Reduction or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, neither Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good.
2. Upon the entry into force of this Agreement, Georgia shall eliminate its customs duties applied on goods originating from the UAE in accordance with Annex 2A (Georgia Schedule of Tariff Commitments) and the UAE shall eliminate its customs duties on goods originating from Georgia in accordance with Annex 28 (UAE Schedule ofTariff Commitments).
3. Where a Party reduces its most-favoured-nation (hereinafter "MFN") applied rate of customs duty, that duty rate shall apply to an originating good of the other Party if, and for as long as, it is lower than the customs duty rate on the same good calculated in accordance with Annex 2A (Georgia Schedule of Tariff Commitments) in the case Georgia or Annex 28 (UAE Schedule of Tariff Commitments) in the case of the UAE.
Article 2.5. Acceleration or Improvement of Tariff Commitments
1. Upon request of a Party, the other Party shall consult with the requesting Party to consider accelerating, improving or broadening the scope of the elimination of customs duties as set out in its schedule of tariff commitments in Annex 2A (Georgia Schedule of Tariff Commitments) or 28 (UAE Schedule of Tariff Commitments).
2. Nothing in this Agreement shall prohibit a Party from unilaterally accelerating or broadening the scope of the elimination of customs duties set out in its Schedule in Annex 2 (Schedules of Tariff Commitments) on originating goods in line with its national legislation Any such unilateral acceleration or broadening of the scope of the elimination of customs duties will not permanently supersede any duty rate or staging category determined pursuant to its respective Schedule nor serve to waive that Party's right to impose at a later time the duty rate or staging category that is determined for that later time by its respective Schedule.
Article 2.6. Classification of Goods and Transposition of Schedules
1. The classification of goods in trade between the Parties shall be in conformity with the Harmonized Commodity Description and Coding Systems (HS) and its amendments. Each Party shall ensure consistency in applying its laws and regulations to the tariff classification of originating goods of the other Party.
2. The Parties shall mutually decide whether any revisions are necessary to implement Annexes 2A (Georgia Schedule of Tariff Commitments) and 28 (UAE Schedule of Tariff Commitments) due to periodic amendments and transposition of the HS Code.
3. If the Parties decide that revisions are necessary in accordance with paragraph 2, the transposition of the Schedules of Tari ff Commitments shall be carried out in accordance with the methodologies and procedures adopted by the Joint Committee.
4. Each Party shall ensure that the transposition of its Schedule of Tariff Commitments under paragraph 3 does not afford less favourable treatment to an originating good of the other Party set out in its Schedule of Tariff Commitments in Annexes 2A (Georgia Schedule of Tariff Commitments) and 28 (UAE Schedule of Tariff Commitments).
5. A Party may introduce new tariff splits, provided that the preferential conditions applied in the new tariff splits are not less preferential than those applied originally.
Article 2.7. Temporary Admission
1. Each Party shall, in accordance with its respective domestic laws, grant temporary admission free of customs duties for the following goods imported from the other Party regardless of their origin:
(a) professional and scientific equipment and materials, including their spare parts, and included goods for sports purposes, that are 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 use at playgrounds, theatres, exhibitions, fairs or other similar events, including but not necessarily limited to commercial samples, advertising materials including printed materials, films and recordings;
(c) containers and pallets in use or to be used for refilling;
(d) machinery and equipment for completion of projects or for conducting the experiments and tests relating to such projects, or for repair; and
(e) goods imported in connection with manufacturing operations.
2. A Party shall not impose any condition on the temporary admission of a good referred to in paragraph 1 of this Article, other than to require that such good:
(a) be accompanied by a security deposit in an amount no greater than the customs duty or charges that would otherwise be owed on importation, releasable on exportation of the good;
(b) be exported on the departure of the person referred to in paragraph I or within such period of time as is reasonably related to the purpose of temporary admission;
(c) be capable of identification when exported;
(d) not be sold or leased while in its territory;
(e) not be imported in a quantity greater than is reasonable for its intended use; and
(f) be otherwise admissible into the importing Party's territory under its laws.
3. If any condition that a Party imposes under paragraph 2 of this Article has not been fulfilled, that Party may apply the customs duty and any other charge that would normally be owed on importation of the good.
4. Each Party shall, at the request of the importer and for reasons deemed valid by its Customs authorities, extend the time limit for temporary admission beyond the period initially fixed.
5. Each Party shall relieve the importer of liability for failure to export a temporarily admitted good upon presentation of satisfactory proof to the Party's Customs authorities that the good has been destroyed within the original time limit for temporary admission or any lawful extension. A Party may condition relief of liability under this paragraph by requiring the importer to receive prior approval from the Customs authorities of the importing Party before the good can be so destroyed.
6. Each Party, through its Customs authorities, shall adopt and maintain procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, these procedures shall provide that when such goods accompany 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.
Article 2.8. Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials
Each Party shall, in accordance with its respective domestic laws and regulations, 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 the solicitation of orders for services provided from the territory of the other Party or a non-Party; or
(b) such advertising materials be imported in packets that each contain no more than one copy of each such material and that neither such materials nor packets form part of a larger consignment.
Article 2.9. Goods Returned or Re-Entered after Repair or Alteration
1. Neither Party may apply a customs duty to a good, regardless of its origin, that re-enters its territory within one year after that good has been 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 its territory, except that a customs duty may be applied to the addition resulting from the repair or alteration that was performed in the territory of the other Party.
2. Neither Party may apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration, provided such good is exported from the territory of the importing Party according to its domestic laws and regulations.
3. For purposes of this Article, "repair" or "alteration" means any operation or process undertaken on a good to remedy operational defects or material damage and entailing the re-establishment of the good to its original function, or to ensure its compliance with technical requirements for its use. Repair or alteration of a good includes restorating, renovating, cleaning, resterilising, maintenance or other operation or process regardless of a possible increase in the value of the good that does not:
(a) destroy a good's essential characteristics or create a new or commercially different good;
(b) transform an unfinished good into a finished good; or
( c) change the function of a good.
Article 2.10. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, neither Party may adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994 and its interpretative notes, and to this end Article XI of GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
2. In the event that a Party introduces a measure that imposes a prohibition or restriction otherwise justified under the relevant provisions of the WTO Agreement with respect to the exportation of goods to the other Party, the Party imposing the measure shall publish the measure in a timely manner. Upon the request of the other Party, it shall enter into consultation with the aim of resolving any problem that may arise due to that measure.
Article 2.11. Import Licensing
1. Neither Party may adopt or maintain a measure that is inconsistent with the Import Licensing Agreement, (1) which is hereby incorporated into and made part of this Agreement, mutatis mutandis.
2. Before applying any new or modified import licensing procedure, a Party shall publish it in such a manner as to enable governments and traders to become acquainted with it, including through publication on an official government internet site. Upon request of the other Party, the Party shall exchange information concerning its implementation in a reasonable period.
Article 2.12. Customs Valuation
The Parties shall determine the customs value of goods traded between them in accordance with the provisions of Article VII of the GATT I 994 and the Customs Valuation Agreement, mutatis mutandis.
Article 2.13. Export Subsidies
Upon entry into force of this Agreement, no Party shall maintain, introduce or reintroduce export subsidies or other measures with equivalent effect on any good destined for the territory of the other Party, including agricultural products.
Article 2.14. Transparency
Article X of the GATT 1994 is incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.15. Restrictions to Safeguard the Balance-of-Payments
1. The Parties shall endeavour to avoid the imposition of restrictive measures for balance-of-payments purposes.
2. Any such measures taken for trade in goods shall be in accordance with Article XII of the GATT 1994 and the Understanding on the Balance-of-Payments Provisions of the GA TT 1994, the provisions of which are incorporated into and made a part of this Agreement, mutatis mutandis.
Article 2.16. Administrative Fees and Formalities
1. Each Party shall ensure, in accordance with Article VIll: 1 of GATT 1994 and its interpretive notes, and Article 6 of the WTO Agreement on Trade Facilitation, that all fees and charges of whatever character ( other than import and export duties, charges equivalent to an internal tax or other internal charges applied consistently with Article lll:2 of GA TT 1994, and antidumping and countervailing duties applied pursuant to its laws or regulations) imposed on, or in connection with, importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. Each Party shall promptly publish details and shall make such information available on the internet regarding the fees and charges it imposes in connection with importation or exportation and shall make such information available to the other Party upon written request in English.
Article 2.17. Non-Tariff Measures
1. Neither Party shall adopt or maintain any non-tariff measure on 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 this Agreement.
2. Each Party shall ensure that its laws, regulations, procedures and administrative rulings relating to non-tariff measures are not prepared, adopted or applied with the view to, or with the effect of, creating unnecessary obstacles trade with the other Party.
3. If a Party considers that a non-tariff measure of the other Party is an unnecessary obstacle to trade, that Party may nominate such a non-tariff measure for review by the Sub-committee on Trade in Goods by notifying the other Party at least 30 days before the date of the next scheduled meeting of the Sub-committee on Trade in Goods. A nomination of a non-tariff measure for review shall include reasons for its nomination, how the measure adversely affects trade between the Parties, and if possible, suggested solutions. The Sub-committee on Trade in Goods shall immediately review the measure with a view to securing a mutually agreed solution to the matter.
Article 2.18. State Trading Enterprises
Nothing in this Agreement shall -be construed to prevent a Party from maintammg or establishing a state trading enterprise in accordance with Article XVII of the GATT 1994 and the Understanding on the Interpretation of Article XVII of the GATT 1994.
Article 2.19. Exchange of Data
1. The Parties recognise the value of trade data in accurately analysing the implementation of the Agreement. The Parties shall cooperate with a view to conducting periodic exchanges of data relating to trade in goods between the Parties.
2. The Parties may engage in such periodic exchanges within the Sub-committee on Trade in Goods.
3. A Party shall give positive consideration to a request from the other Party for technical assistance for the purposes of exchange of data under paragraph 1.
Article 2.20. Subcommittee on Trade In Goods
1. The Parties hereby establish a Subcommittee on Trade m Goods under the Joint Committee comprising representatives of each Party.
2. The Subcommittee shall meet once a year or as often as the Parties consider necessary to consider any matter arising under this Chapter.
3. The functions of the Subcommittee shall include, inter alia:
(a) monitoring the implementation and administration of this Chapter;
(b) promoting trade in goods between the Parties, including through consultations on accelerating and broadening the scope of preferential treatment or tariff elimination under this Agreement and other issues as appropriate;
(c) addressing barriers to trade in goods between the Parties, including those related to non-tariff measure that may restrict trade in goods between the Parties and, if appropriate, referring such matters to the Joint Committee for its consideration;