2. The customs audit shall be implemented in a transparent manner. Parties shall notify the persons concerned of the result of the case, the rights and obligations it has, as well as the evidences and reasons for the result.
3. The Parties shall, wherever practicable, use the result of customs audit in applying risk management and identifying authorised traders.
Article 4.13. Authorised Economic Operator System
A Party operating an Authorised Economic Operator System or security measures affecting international trade flows shall:
(a) afford the other Party the possibility to negotiate mutual recognition of authorisation and security measures for the purpose of facilitating international trade while ensuring effective customs control; and
(b) draw on relevant international standards, in particular the WCO Framework of Standards.
Article 4.14. Customs Brokers
The Parties shall ensure that legislation regarding customs brokers is based on transparent rules. The Parties shall allow legal persons to operate with their own customs brokers, as defined intheir respective nationallaw.
Article 4.15. Fees and Charges
1. Each Party shall ensure, in accordance with paragraph 1 of Article VIII of the GATT 1994, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charge applied consistently with paragraph 2 of Article III of the GATT 1994, and antidumping and countervailing duties) 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 imports or exports for fiscal purposes.
2. Each Party shall publish information on fees and charges. The Parties shall endeavour to publish this information on the Internet, in English, as appropriate. Such information may include the type of the fee or charge, the fees and charges that will be applied and the way they are calculated.
3. Upon request, a Party shall provide information on fees and charges applicable to imports of goods into that Party.
Article 4.16. Consular Transaction
A Party shall not require consular transaction, including related fees and charges in connection with the importation of any goods of the other Party.
Article 4.17. Temporary Admission of Goods
1. Each Party shall facilitate temporary admission of goods.
2. For the purposes of this Article, "temporary admission" means customs procedures under which certain goods may be brought into a customs territory conditionally relieved from payment of customs duties. Such goods shall be imported for a specific purpose, and shall be intended for reexportation within a specified period and without having undergone any change except normal depreciation due to the use made of them.
Article 4.18. Inward and Outward Processing
1. Each Party shall allow inward and outward processing of goods, in accordance with international standards and practices subject to terms and conditions as may be specified in the national legislation.
2. For the purposes of this Article, "inward processing" means customs procedures under which certain goods can be brought into a customs territory conditionally relieved from payment of customs duties, on the basis that such goods are intended for manufacturing, processing or repair and subsequent exportation.
3. For the purposes of this Article, "outward processing" means customs procedures under which certain goods, which are in free circulation in a customs territory, may be temporarily exported for manufacturing, processing or repair abroad and then reimported with total or partial exemption from customs duties and taxes.
Article 4.19. Border Agency Cooperation
A Party shall ensure that its authorities and agencies involved in border and other import and export controls cooperate and coordinate their procedures in order to facilitate trade.
Article 4.20. Review and Appeal
Each Party shall ensure that importers, exporters and producers have the right to at least one level of independent administrative review or appeal and judicial appeal in accordance with its domestic legislation.
Article 4.21. Confidentiality
All information provided in relation with the importation, exportation, advance rulings or transit of goods shall be treated as confidential by the Parties and shall be covered by the obligation of professional secrecy, in accordance with the respective laws of each Party. This information shall not be disclosed by the authorities of a Party without the express permission of the person or authority providing it.
Article 4.22. Consultation
Either Party may request consultations on matters arising from the operation or implementation of this Chapter. Such consultation shall be conducted through the relevant contact points of the respective customs administration. Information on the contact points shall be provided to the other Party and any amendment of the said information shall be notified promptly.
Article 4.23. Sub-Committee on Customs Procedures and Trade Facilitation
1. A SubCommittee on Customs Procedures and Trade Facilitation (hereinafter referred to in this Article as the "SubCommittee") consisting of representatives of both Parties is hereby established under the Joint Committee.
2. The Sub-Committee shall deal with the following issues:
(a) monitor and review of measures taken and implementation of commitments;
(b) exchange of information and review developments;
(c) prepare and coordinate positions of the Parties;
(d) prepare technical amendments and assist the JointCommittee;
(e) customs practices, including national and international standards, which facilitate trade in goods between the Parties;
(f) interpretation, application and administration of this Chapter;
(g) tariff classification and customs valuation matters;
(h) other subjects regarding practices and procedures adopted by the Parties, which may have an impact on the expeditious clearance ofgoods;
(i) other matters as the Parties may agree;
(j) other matters that are referred to the Sub-Committee by the Joint Committee; and
(k) make recommendations and report to the Joint Committee as necessary.
3. The Sub-Committee shall be chaired by representatives of the customs administration of the Parties. Upon mutual agreement, the Parties may invite representatives from industry, business associations or other relevant organisations to participate in parts of the meetings of the SubCommitteeona case by case basis.
4. The SubCommittee shall be co-chaired. The Sub-Committee shall designate a chairperson. The chairperson shall prepare a provisional agenda for each meeting of the Sub-Committee in consultation with the other Party and forward it to the other Party before the meeting.
5. The SubCommittee shall meet as often as required. It shall be convened by the Joint Committee, by the chairperson of the Sub-Committee or upon request of a Party. The meeting shall take place alternately between China and Switzerland, or as mutually agreed by the Parties.
6. The Sub-Committee shall prepare a report on the results of each meeting, and the chairperson shall, if requested, report at a meeting of the Joint Committee.
Chapter 5. Trade Remedies
Section I. General Trade Remedies
Article 5.1. Scope
This Chapter applies to trade in goods between the customs territory of China and the customs territory of Switzerland as defined in Article 2.1.
Article 5.2. Antidumping
1. The rights and obligations of the Parties in respect of anti-dumping measures shall be governed by Article VI of the GATT 1994 and the WTO Agreement on Implementation of Article VI of the GATT 1994. The Parties agree not to take such measures in an arbitrary or protectionist manner.
2. As soon as possible following the acceptance of a properly documented application from an industry in one Party for the initiation of an anti-dumping investigation in respect of goods from the other Party and before proceeding to initiate such investigation, that Party shall notify the other Party.
Article 5.3. Subsidies and Countervailing Measures
1. The rights and obligations of the Parties in respect of subsidies and countervailing measures shall be governed by Articles VI and XVI of the GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures.
2. Before a Party initiates an investigation to determine the existence, degree and effect of any alleged subsidy in the other Party, as provided for in Article 11 of the WTO Agreement on Subsidies and Countervailing Measures, the Party considering initiating an investigation shall notify the other Party and allow for a consultation with a view to finding a mutually acceptable solution in an amicable manner.
Section II. Bilateral Safeguard Measures
Article 5.4. Application of a Bilateral Safeguard Measure
1. If, as a result of the reduction or elimination of a customs duty under this Agreement, a product originating in a Party is being imported into the territory of the other Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause serious injury or threat thereof to a domestic industry producing a like or directly competitive product, the importing Party may apply a bilateral safeguard measure described in paragraph 2 during the transition period.
2. If the conditions in paragraph 1 are met, a Party may, only to the extent as may be necessary to prevent or remedy serious injury, or threat thereof, and to facilitate adjustment:
(a) suspend the further reduction of any rate of customs duty on the product provided for under this Agreement;or
(b) increase the rate of customs duty on the product to a level not exceeding the lesser of:
i. the MFN applied rate of customs duty in effect at the time the measure is taken; or
ii. the MFN applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement.
3. No Party may apply, with respect to the same product, at the same time:
(a) a bilateral safeguard measure; and
(b) a measure under Article XIX of the GATT 1994 and the WTO Agreement on Safeguards.
Article 5.5. Standards for a Bilateral Safeguard Measure
1. Bilateral safeguard measures shall only be taken during the transition period, which shall be a period of five years beginning on the date of entry into force of this Agreement. In the case of a product where the liberalisation process as set out in Annex I lasts five or more years, the transition period shall be extended to the date on which such a product reaches zero-tariff according to the Schedule in that Annex plus three years.
2. Bilateral safeguard measures shall in principle be limited to a period of two years; they may be extended for another year. Regardless of its duration, a bilateral safeguard measure shall terminate no later than at the end of the transition period for the product concerned.
3. A Party shall not apply a bilateral safeguard measure again on a product which has been subject to such a measure for a period of time equal to that during which such a measure had been previously applied, provided that the period of nonapplication is at least two years. However, no bilateral safeguard measure may be applied more than twice on the same product.
4. Upon the termination of the bilateral safeguard measure, the rate of customs duty shall be the rate which would have been in effect but for the measure.
Article 5.6. Investigation Procedures and Transparency Requirements
1. The importing Party may apply a bilateral safeguard measure only following an investigation by its competent authorities in accordance with Article 3 of the WTO Agreement on Safeguards. To this end, Article 3 of the WTO Agreement on Safeguards is incorporated into and made a part of this Agreement, mutatis mutandis.
2. In determining whether increased imports of an originating product of the other Party have caused serious injury or are threatening to cause serious injury to a domestic industry, the competent authority of the importing Party shall follow the rules in Article 4 of the WTO Agreement on Safeguards. To this end, Article 4 of the WTO Agreement safeguards is incorporated into and made a part of this Agreement, mutatis mutandis.
Article 5.7. Provisional Safeguard Measures
1. In critical circumstances, where delay would cause damage which would be difficult to repair, a Party may take a provisional safeguard measure pursuant to a preliminary determination that there is clear evidence that increased imports have caused or are threatening to cause serious injury.
2. The duration of the provisional safeguard measure shall not exceed 200 days during which period the pertinent requirements of Article 5.4, Article 5.5, Article 5.6 and Article 5.8 shall be met. Such a provisional safeguard measure shall take the form of an increase in the rate of customs duty not exceeding the lesser of the rates in Article 5.4, which shall be promptly refunded if the subsequent investigation does not determine that increased imports have caused or threatened to cause serious injury to a domestic industry. The duration of any such provisional safeguard measure shall be counted as a part of the duration of the measure set out in Article 5.5.
Article 5.8. Notification and Consultation
1. A Party shall promptly notify the other Party on:
(a) initiating an investigation;
(b) making a finding of serious injury or threat thereof caused by increased imports; and
(c) taking a decision to apply or extend a bilateral safeguard measure.
2. The Party making the notification referred to in subparagraphs 1(b) and 1(c) shall provide the other Party with all pertinent information which shall include evidence of serious injury or threat thereof caused by increased imports, a precise description of the product involved and the proposed measure, as well as the proposed date of introduction and its expected duration. In the case of an extension of a bilateral safeguard measure, evidence that the continued application of the measure is necessary to prevent or remedy serious injury and that the industry is adjusting, shall also be provided.
3. APartyproposing to apply or extend a bilateral safeguard measure shall provide adequate opportunity for prior consultations with the other Party, with a view to, inter alia, reviewing the information provided under paragraph 2, exchanging views on the bilateral safeguard measure and reaching an agreement on compensation as set forth in Article 5.9.
4. Before a Party takes a provisional safeguard measure referred to in Article 5.7, it shall notify the other Party, and, on request of the other Party, consultations shall be initiated immediately after taking such a measure.
Article 5.9. Compensation
1. The Party applying a bilateral safeguard measure shall, in consultation with the other Party, provide to the other Party mutually agreed trade liberalising compensation in the form of substantially equivalent concessions during the period of application of the bilateral safeguard measure.
2. If the Parties are unable to reach agreement on compensation within 30 days after the application of the bilateral safeguard measure, the Party against whose product the bilateral safeguard measure is taken may take compensatory action. In the selection of the compensatory action, priority must be given to the action which least disturbs the functioning of this Agreement. The right of compensation referred to in this paragraph shall not be exercised for the first six months that a bilateral safeguard measure is in effect under the condition that the bilateral safeguard measure has been taken as a result of an absolute increase in imports and that such a measure conforms to the provisions of this Chapter.
3. A Party shall notify the other Party at least 30 days before taking compensatory action under paragraph2.
4. The Party taking compensatory action shall apply the action only for the minimum period necessary to achieve the substantially equivalent trade effects and in any event, only while the bilateral safeguard measure is being applied.
Chapter 6. Technical Barriers to Trade
Article 6.1. Objectives
The objectives of this Chapter are to:
(a) facilitate bilateral trade and access to respective markets for goods falling under the scope of this Chapter and furthering the implementation of the WTO Agreement on Technical Barriers to Trade (hereinafter referred to as the "TBT Agreement");
(b) reduce, wherever possible, unnecessary costs associated with trade between the Parties;
(c) facilitate information exchange and technical cooperation between the Parties, and enhance mutual understanding of each party's regulatorysystem;and (d) strengthen cooperation between the Parties in the field of technical regulations, standards and conformity assessment procedures.
Article 6.2. Affirmation
Except as otherwise provided for in this Chapter, with respect to technical regulations, standards and conformity assessment procedures, the TBT Agreement shall apply between the Parties and is hereby incorporated into and made part of this Agreement, mutatis mutandis.
Article 6.3. Scope and Definitions
1. This Chapter applies to all standards, technical regulations and conformity assessment procedures of the Parties, except sanitary and phytosanitary measures covered by Chapter 7, and purchasing specifications prepared by governmental bodies for production or consumption requirements of governmental bodies.
2. The definitions of Annex1 to the TBT Agreement shall apply to this Chapter.
Article 6.4. International Standards
For the purpose of applying this Chapter, standards issued, in particular, by the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the International Telecommunication Union (ITU) and Codex Alimentarius Commission (CAC) shall be considered relevant international standards in the sense of Article 2.4 of the TBT Agreement.
Article 6.5. Technical Cooperation
With a view to increasing their mutual understanding of their respective systems, enhancing capacity-building and facilitating bilateral trade,the Parties shall strengthen their technical cooperation in the following areas :
(a) activities of international standardisation bodies and the WTO Committee on Technical Barriers to Trade;
(b) communication between each other's competent authorities, exchange of information in respect of technical regulations, standards, conformity assessment procedures and good regulatory practice;
(c) reinforcing the role of international standards as a basis for technical regulations and conformity assessment procedures;
(d) promoting the accreditation of conformity assessment bodies on the basis of relevant standards and guides of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC);
(e) encouraging the mutual acceptance of conformity assessment results of bodies accredited in accordance with paragraph d), which have been recognised under an appropriate multilateral agreement or arrangement; and
(f) other areas as agreed upon by the Parties.
Article 6.6. Measures at the Border
Where a Partydetains, at a port of entry, goods exported from the other Party due to a perceived failure to comply with a technical regulation or conformity assessment procedures, the reasons for the detention shall be promptly notified to the importer or his or her representative.
Article 6.7. Subcommittee on Technical Barriers to Trade
1. A Sub-Committee on Technical Barriers to Trade (hereinafter referred to as the "TBT SubCommittee") is hereby established under the Joint Committee.
2. The functions of the TBT Sub-Committee shall be:
(a) monitoring the implementation of this Chapter;
(b) coordinating technical cooperation activities;
(c) facilitating technical consultations pursuant to Article 6.8;
(d) identifying sectors for enhanced cooperation, including giving favourable consideration to any sector-specific proposal made by either Party;
(e) establishing dialogues between regulators in accordance with the objectives of this Chapter;
(f) initiating side agreements where appropriate pursuant to Article 6.9;
(g) coordinating the implementation of side agreements pursuant to 6.9;
(h) consulting on any issue prior to meetings of relevant international organisations if appropriate;
(i) other functions mutually agreed by the Parties;and
(j) carrying out other tasks assigned to it by the JointCommittee.
3. The TBT SubCommittee shall be cochaired and meet once a year, unless otherwise agreed by the Parties. The TBT SubCommittee meetings may be conducted by any agreed method on a case by case basis and may be combined with those of the SubCommittee on Sanitary and Phytosanitary Measures established under Article 7.9.
4. The TBT SubCommittee shall keep up to date a work programme and keep track of its activities.
5. The TBT SubCommittee may establish ad hoc working groups to accomplish specific tasks.
6. The TBT Sub-Committee shall report on its work to the JointCommittee.
7. The contact points referred to in Article 6.11 shall be responsible for setting the agenda and organising the meetings. The TBT Sub-Committee shall include representatives of the authorities of each Party with expertise in the areas to be discussed.
8. Upon agreement, the Parties may invite representatives from industry, business associations or other relevant organisations to participate in parts of the meetings of the TBT Sub-Committee on a case by case basis.
Article 6.8. Technical Consultations
Technical consultations under the auspices of the TBT SubCommittee shall be held at the written request of the Party which considers that the other Party has taken a measure which is likely to create, or has created, an unnecessary obstacle to trade. Such consultations shall take place within 60 days from the request with the objective of finding mutually acceptable solutions. Such consultations may be conducted by any agreed method on a case by case basis. (6)
Article 6.9. Annexes and Side Agreements
1. The Parties have concluded Annex V to this Agreement on Labelling of Textiles.
2. Pursuant to and in conjunction with this Agreement, the Parties have concluded side agreements to implement this Chapter. The Parties may conclude further side agreements in the future.
Article 6.10. Review Clause
1. The Parties shall no later than two years after the entry into force of this Agreement, and thereafter upon request, jointly review this Chapter.
2. In this review, the Parties shall consider, among others, entering into negotiations with regard to providing each other treatment granted to a third party with whom both Parties have established arrangements concerning standards, technical regulations or conformity assessment procedures.
Article 611. Contact Points
1. The Parties shall exchange names and addresses of contact points for matters related to this chapter in order to facilitate communication and the exchange of information.
2. The Parties shall notify each other of any significant changes in the structures and responsibilities of the authorities acting as contact points.
Chapter 7. Sanitary and Phytosanitary Measures
Article 7.1. Objectives
The objectives of this Chapter are to:
(a) facilitate bilateral trade and access to respective markets for goods falling under the scope of this Chapter and furthering the implementation of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (hereinafter referred to as the "SPS Agreement");