23. "sub-sector" means a well-defined and controlled part of a sector;
24. "commodities" means animals and plants, or categories thereof, or specific products and other objects being moved for trade or other purposes, including those referred to in points 2 to 7 of this Article;
25. "specific import authorisation" means a formal prior authorisation by the competent authorities of the importing Party addressed to an individual importer as a condition for import of a single consignment or multiple consignments of a commodity from the exporting Party, within the scope of this Agreement;
26. "working days" means week days except Sunday, Saturday and public holidays in one of the Parties;
27. "inspection" means the examination of any aspect of feed, food, animal health and animal welfare in order to verify that such aspect(s) comply with the legal requirements of feed and food law and animal health and animal welfare rules;
28. "plant health inspection" means official visual examination of plants, plant products or other regulated objects to determine if pests are present and/or to determine compliance with phytosanitary regulations;
29. "verification" means checking, by examination and the consideration of objective evidence, whether specified requirements have been fulfilled.
Article 63. Competent Authorities
The Parties shall inform each other about the structure, organisation, and division of competences of their competent authorities during the first meeting of the Sanitary and Phytosanitary Management Sub-Committee (hereinafter referred to as the "SPS Sub-Committee") referred to in Article 74 of this Agreement. The Parties shall inform each other of any change concerning such competent authorities, including contact points.
Article 64. Regulatory Approximation
1. Ukraine shall approximate its sanitary and phytosanitary and animal welfare legislation to that of the EU as set out in Annex V to this Agreement.
2. The Parties shall cooperate on legislative approximation and eapacity-building.
3. The SPS Sub-Committee shall regularly monitor implementation of the approximation process, set out in Annex V to this Agreement, in order to provide the necessary recommendations on approximation measures.
4. Not later than three months after the entry into force of this Agreement, Ukraine shall submit to the SPS Sub-Committee a comprehensive strategy for the implementation of this Chapter, divided into priority areas that relate to measures, as defined in Annex IV-A, Annex IV-B and Annex IV-C to this Agreement, facilitating trade in one specific commodity or group of commodities. The strategy shall serve as the reference document for the implementation of this Chapter and it will be added to Annex V to this Agreement (1).
Article 65. Recognition for Trade Purposes of Animal Health and Pest Status and Regional Conditions
A. Recognition of status for animal diseases, infections in animals or pests
1. As regards animal diseases and infections in animals (including zoonosis), the following shall apply:
(a) The importing Party shall recognise for trade purposes, the animal health status of the exporting Party or its regions as determined by the exporting Party in accordance with Annex VII Part A to this Agreement, with respect to animal diseases specified in Annex VI-A to this Agreement;
(b) Where a Party considers that it has, for its territory or a region, a special status with respect to a specific animal disease, other than those listed in Annex VI-A to this Agreement, it may request recognition of this status in accordance with the criteria laid down in Annex VII Part C to this Agreement. The importing Party may request guarantees in respect of imports of live animals and animal products, which are appropriate to the agreed status of the Parties;
(c) The status of the territories or regions, or the status in a sector or sub-sector of the Parties related to the prevalence or incidence of an animal disease other than listed in Annex VI-A to this Agreement, or infections in animals, and/or the associated risk, as appropriate, as defined by OIE, is recognised by the Parties as the basis for trade between them. The importing Party may request guarantees in respect of imports of live animals and animal products which are appropriate to the defined status in accordance with the recommendations of OIE, as appropriate.
(d) Without prejudice to Articles 67, 69 and 73 of this Agreement, and unless the importing Party raises an explicit objection and requests supporting or additional information or consultations and/or verification, each Party shall take, without undue delay, the necessary legislative and administrative measures to allow trade on the basis of points (a), (b) and (c) of this paragraph.
2. As regards pests, the following shall apply:
(a) The Parties recognise for trade purposes their pest status in respect of pests specified in Annex VI-B to this Agreement;
(b) Without prejudice to Articles 67, 69 and 73 of this Agreement, and unless the importing Party raises an explicit objection and requests supporting or additional information or consultations and/or verification, each Party shall take, without undue delay, the necessary legislative and administrative measures to allow trade on the basis of point (a) of this paragraph.
B. Recognition of regionalisation/zoning, pest-free areas (hereinafter referred to as "PFAs") and protected zones (hereinafter referred to as "PZs")
3. The Parties recognise the concept of regionalisation and PFAs as specified in the relevant Food and Agriculture Organization/International Plant Protection Convention of 1997 and International Standards for Phytosanitary Measures (hereinafter referred to as "ISPM") of the Food and Agriculture Organization, and of protected zones according to Directive 2000/29/EC, which they agree to apply to trade between them.
4. The Parties agree that regionalisation decisions for animal and fish diseases listed in Annex VI-A, and for pests listed in Annex VI-B to this Agreement, shall be taken in accordance with the provisions of Annex VII Part A and B to this Agreement.
5. (a) As regards animal diseases, and in accordance with Article 67 of this Agreement, the exporting Party seeking recognition of its regionalisation decision by the importing Party shall notify its measures with full explanations and supporting data for its determinations and decisions. Without prejudice to Article 68 of this Agreement, and unless the importing Party raises an explicit objection and requests additional information or consultations and/or verification within 15 working days of receipt of the notification, the regionalisation decision so notified shall be deemed to be accepted;
(b) The consultations referred to in point (a) of this paragraph shall take place in accordance with Article 68(3) of this Agreement. The importing Party shall assess the additional information within 15 working days of receipt of the ad- ditional information. The verification referred to in point (a) shall be carried out in accordance with Article 71 of this Agreement and within 25 working days of receipt of the request for verification.
6. (a) As regards pests, each Party shall ensure that trade in plants, plant products and other objects takes account, as appropriate, of the pest status in an area recognised as a protected zone or as a PFA by the other Party. A Party seeking recognition of its PFA by the other Party shall notify its measures and, upon request, provide full explanation and supporting data for its establishment and maintenance, as guided by the relevant ISPMs as the Parties deem appropriate. Without prejudice to Article 73 of this Agreement, and unless a Party raises an explicit objection and requests additional information or consultations and/or verification within three months of the notification, the regionalisation decision for PFAs so notified shall be deemed to be accepted;
(b) The consultations referred to in point (a) shall take place in accordance with Article 68(3) of this Agreement. The importing Party shall assess the additional information within three months of receipt of the additional information. The verification referred to in point (a) shall be carried out in accordance with Article 71 of this Agreement and within 12 months of receipt of the request for verification, taking into account the biology of the pest and the crop concerned.
7. After finalisation of the procedures described in paragraphs 4 to 6 of this Article, and without prejudice to Article 73 of this Agreement, each Party shall take, without undue delay, the necessary legislative and administrative measures to allow trade on that basis.
C. Compartmentalisation
The Parties commit themselves to engaging in further discussions with a view to implementing the principle of compartmentalisation referred to in Annex XIV to this Agreement.
Article 66. Determination of Equivalence
1. Equivalence may be recognised in respect of:
(a) an individual measure; or
(b) a group of measures; or
(c) a system applicable to a sector, sub-sector, commodities or group of commodities.
2. In the determination of equivalence, the Parties shall follow the process set out in paragraph 3 of this Article. This process shall include the objective demonstration of equivalence by the exporting Party and the objective assessment of this demonstration by the importing Party. This may include an inspection or verification.
3. Upon a request by the exporting Party concerning recognition of equivalence, as set out in paragraph 1 of this Article, the Parties shall without delay and no later than three months following receipt by the importing Party of such request, initiate the consultation process which includes the steps set out in Annex IX to this Agreement. However, if multiple requests are made by the exporting Party, the Parties, at the request of the importing Party, shall agree within the SPS Sub- Committee referred to in Article 74 of this Agreement on a time schedule in which they shall initiate and conduct the process referred to in this paragraph.
4. When legislative approximation is achieved as a result of the monitoring referred to in Article 64(3) of this Agreement, this fact shall be deemed to be a request by Ukraine to initiate the process of recognition of equivalence of relevant measures, as set out in paragraph 3 of this Article.
5. Unless otherwise agreed, the importing Party shall finalise the determination of equivalence referred to in paragraph 3 of this Article within 360 days of receipt from the exporting Party of the request, including a dossier demonstrating the equivalence, except for seasonal crops when it is justifiable to delay the assessment to permit verification during a suitable period of growth of a crop.
6. The importing Party determines equivalence as regards plants, plant products and other objects in accordance with relevant ISPMs, as appropriate.
7. The importing Party may withdraw or suspend equivalence, on the basis of any amendment by one of the Parties, of measures affecting equivalence, provided that the following procedures are followed:
(a) In accordance with Article 67(2) of this Agreement, the exporting Party shall inform the importing Party of any proposal for amendment of its measures for which equivalence of measures is recognised and the likely effect of the proposed measures on the equivalence which has been recognised. Within 30 working days of receipt of this information, the importing Party shall inform the exporting Party whether or not equivalence would continue to be recognised on the basis of the proposed measures;
(b) In accordance with Article 67(2) of this Agreement, the importing Party shall inform the exporting Party of any proposal for amendment of its measures on which recognition of equivalence has been based and the likely effect of the proposed measures on the equivalence which has been recognised. Should the importing Party not continue to recognise equivalence, the Parties may agree on the conditions to re-initiate the process referred to in paragraph 3 of this Article on the basis of the proposed measures.
8. The recognition, suspension or withdrawal of equivalence rests solely with the importing Party acting in accordance with its administrative and legislative framework. That Party shall provide to the exporting Party in writing full explanations and supporting data used for the determinations and decisions covered by this Article. In case of non-recognition, suspension or withdrawal of equivalence, the importing Party shall indicate to the exporting Party the required conditions on the basis of which the process referred to in paragraph 3 may be reinitiated.
9. Without prejudice to Article 73 of this Agreement, the importing Party may not withdraw or suspend equivalence before the proposed new measures of either Party enter into force.
10. Where equivalence is formally recognised by the importing party, on the basis of the consultation process as set out in Annex IX to this Agreement, the SPS Sub-Committee shall, in accordance with the procedure set out in Article 74(2) of this Agreement, declare recognition of equivalence in trade between the Parties. The decision shall also provide for the reduction of physical checks at the frontiers, simplified certificates and pre-listing procedures for the establishments as appropriate.
The status of the equivalence shall be listed in Annex IX to this Agreement.
11. When laws are approximated, the equivalence determination takes place on that basis.
Article 67. Transparency and Exchange of Information
1. Without prejudice to Article 68 of this Agreement, the Parties shall cooperate to enhance mutual understanding of their official control structure and mechanisms tasked with the application of SPS measures and their respective performance. This can be achieved, amongst others, through reports of international audits when these are made public and the Parties can exchange information on the results of these audits or other information, as appropriate.
2. In the framework of approximation of legislation as referred to in Article 64 or of determination of equivalence as referred to in Article 66 of this Agreement, the Parties shall keep each other informed of legis- lative and other procedural changes adopted in the areas concerned.
3. In this context, the EU Party shall inform Ukraine well in advance of changes to the EU Party legislation to allow Ukraine to consider amending its legislation accordingly.
The necessary level of cooperation should be reached in order to facilitate transmission of legislative documents at the request of one of the Parties.
To this effect, each Party shall notify the other Party of its contact points. The Parties shall also notify each other of any changes to this information.
Article 68. Notification, Consultation and Facilitation of Communication
1. Each Party shall notify the other Party in writing within two working days, of any serious or significant public, animal or plant health risk, including any food control emergencies or situations where there is a clearly identified risk of serious health effects associated with the consumption of animal or plant products and in particular of:
(a) any measures affecting regionalisation decisions as referred to in Article 65 of this Agreement;
(b) the presence or evolution of any animal disease listed in Annex VI- A or of the regulated pests on the list contained in Annex VI-B to this Agreement;
(c) findings of epidemiological importance or important associated risks with respect to animal diseases and pests which are not listed in Annex VI-A and Annex VI-B to this Agreement or which are new animal diseases or pests; and
(d) any additional measures going beyond the basic requirements applicable to the respective measures taken by the Parties to control or eradicate animal diseases or pests or to protect public or plant health and any changes in prophylactic policies, including vaccination policies.
2. (a) Notifications shall be made in writing to the contact points referred to in Article 67(3) of this Agreement.
(b) Notification in writing means notification by mail, fax or e-mail. Notifications shall only be sent between the contact points referred to in Article 67(3) of this Agreement.
3. Where a Party has serious concerns regarding a risk to public, animal or plant health, consultations regarding the situation shall, at the Party's request, take place as soon as possible and, in any case, within 15 working days. In such situations, each Party shall endeavour to provide all the information necessary to avoid a disruption in trade, and to reach a mutually acceptable solution compatible with the protection of public, animal or plant health.
4. Upon request by a Party, consultations regarding animal welfare shall take place as soon as possible and, in any case, within 20 working days of notification. In such situations, each Party shall endeavour to provide all the requested information.
5 Upon request by a Party, consultations as referred to in paragraphs 3 and 4 of this Article, shall be held by video or audio conference. The requesting Party shall ensure the preparation of the minutes of the consultation, which shall be formally approved by the Parties. For the purposes of such approval, Article 67(3) of this Agreement shall apply.
6. A mutually applied rapid alert system and early warning mechanism for any veterinary or phytosanitary emergency will start at a later stage after Ukraine implements the necessary legislation in this field and creates the conditions for the proper on-the-spot functioning of such mechanisms.
Article 69. Trade Conditions
1. General import conditions
(a) For any commodity covered by Annex ITV-A and Annex IV-C(2) to this Agreement, the Parties agree to apply general import conditions. Without prejudice to the decisions taken in accordance with Article 65 of this Agreement, the import conditions of the importing Party shall be applicable to the total territory of the exporting Party. Upon entry into force of this Agreement and in accordance with Article 67 of this Agreement, the importing Party shall inform the exporting Party of its sanitary and phytosanitary import requirements for commodities referred to in Annex IV-A and Annex IV-C(2) to this Agreement. This information shall include, as appropriate, the models for the official certificates or declarations or commercial documents, as prescribed by the importing Party.
(b) (i) For the notification by the Parties of amendments or proposed amendments of the conditions referred to in paragraph 1 of this Article, they shall comply with the provisions of the SPS Agreement and subsequent decisions as regards the notification of measures. Without prejudice to Article 73 of this Agreement, the importing Party shall take into account the transport time between the Parties to establish the date of entry into force of the amended conditions referred to in paragraph 1(a).
(ii) If the importing Party fails to comply with these notification requirements, it shall continue to accept the certificate or attes- tation guaranteeing the previously applicable conditions until 30 days after entry into force of the amended import conditions.
2. Import conditions after recognition of equivalence
(a) Within 90 days of the adoption of a decision on recognition of equivalence, the Parties shall take the necessary legislative and administrative measures to implement the recognition of equivalence in order to allow on that basis trade between them of commodities referred to in Annex IV-A and Annex IV-C(2) to this Agreement in sectors and sub-sectors where applicable, for which all respective sanitary and phytosanitary measures of the exporting Party are recognised as equivalent by the importing Party. For these commodities, the model of the official certificate or official document required by the importing Party may, at that stage, be replaced by a certificate drawn up pursuant to Annex XILB to this Agreement;
(b) For commodities in sectors or sub-sectors, where applicable, for which some but not all measures are recognised as equivalent, trade shall continue on the basis of compliance with the conditions referred to in paragraph 1(a). Upon request by the exporting Party, paragraph 5 of this Article shall apply.
3. From the date of entry into force of this Agreement, the commodities referred in Annex IV-A and Annex IV-C(2) to this Agreement shall not be subject to import authorisation.
Any entry into force of this Agreement earlier than 31 December 2013 shall not have any impact on the Comprehensive Institutional-Building assistance.
4. For conditions affecting trade in the commodities referred to in paragraph 1(a), upon request by the exporting Party, the Parties shall enter into consultations within the SPS Sub-Committee in accordance with Article 74 of this Agreement, in order to agree on alternative or additional import conditions of the importing Party. Such alternative or additional import conditions may, where appropriate, be based on measures of the exporting Party recognised as equivalent by the importing Party. If agreed, the importing Party shall take the necessary legislative and/or administrative measures to allow import on that basis, within 90 days of the decision of the SPS Sub-Committee.
5. List of establishments, conditional approval
(a) For the import of animal products referred to in Annex IV-A, Part 2 to this Agreement, upon a request by the exporting Party accom- panied by appropriate guarantees, the importing Party shall provisionally approve processing establishments referred to in Annex VIIN(2.1) to this Agreement which are situated in the territory of the exporting Party, without prior inspection of indi- vidual establishments. Such approval shall be consistent with the
conditions and provisions set out in Annex VIII to this Agreement. Unless additional information is requested, the importing Party shall take the necessary legislative and/or administrative measures to allow import on that basis within 30 working days of receipt of the request and relevant guarantees by the importing Party.
The initial list of establishments shall be approved in accordance with the procedure set out in Annex VIII to this Agreement.
(b) For the import of animal products referred to in paragraph 2(a), the exporting Party shall inform the importing Party of its list of estab- lishments meeting the importing Party's requirements.
6. Upon request by a Party, the other Party shall provide necessary explanations and supporting data for the determinations and decisions falling within the scope of this Article.
Article 70. Certification Procedure
1. For purposes of certification procedures and the issuing of certificates and official documents, the Parties agree on the principles set out in Annex XII to this Agreement.
2. The SPS Sub-Committee referred to in Article 74 of this Agreement may agree on rules to be followed in case of electronic certification, withdrawal or replacement of certificates.
3. In the framework of approximated legislation, as referred to in Article 64 of this Agreement, the Parties will agree on common models of certificates where applicable.
Article 71. Verification
1. In order to maintain confidence in the effective implementation of the provisions of this Chapter, each Party shall have the right:
(a) to verify, in accordance with the guidelines of Annex X to this Agreement, all or part of the total control programme of the other Party's authorities or other measures where applicable. The expenses of such verification shall be borne by the Party carrying out the verification;
(b) from a date to be determined by the Parties, to receive, at its request from the other Party, information about all or part of that Party's total control programmes and reports concerning the results of the controls carried out under that programme;
(c) for laboratory tests relating to the commodities of Annex IV-A and Annex IV-C(2) to this Agreement, upon request, and where applicable, to participate in the periodical inter-comparative test programme for specific tests organised by the reference laboratory of the other Party. The expenses of such participation shall be bome by the participating Party.
2. Either Party may share the results of the verifications referred to in subparagraph 1(a) of this Article with third parties and make the results publicly available as may be required by provisions applicable to either Party. Confidentiality provisions applicable to either Party shall be respected in such sharing and/or publication of the results, where appro- priate.
3. The SPS Sub-Committee referred to in Article 74 of this Agreement may modify, by means of a decision, Annex X to this Agreement, taking due account of relevant work carried out by inter- national organisations.
4. The results of verification may contribute to measures referred to in Articles 64, 66 and 72 of this Agreement by the Parties or one of the Parties.
Article 72. Import Checks and Inspection Fees
1. The Parties agree that import checks on the import by the importing Party of consignments from the exporting Party shall respect the principles set out in Annex XI, Part A to this Agreement. The results of these checks may contribute to the verification process referred to in Article 71 of this Agreement.
2. The frequency of physical import checks applied by each Party are set out in Annex XI, Part B to this Agreement. A Party may amend these frequencies within its competences and in accordance with its internal legislation, as a result of progress made in accordance with Articles 64, 66 and 69 of this Agreement, or as a result of verifications, consultations or other measures provided for in this Agreement. The SPS Sub-Committee referred to in Article 74 of this Agreement shall, by decision, amend Annex XI, Part B of this Agreement accordingly.
3. Inspection fees may only cover the costs incurred by the competent authority for performing import checks. The fees shall be calculated on the same basis as fees charged for the inspection of similar domestic products.
4. The importing Party shall, at the request of the exporting Party, inform it of any amendments, including the reasons for these amend- ments, concerning the measures affecting import checks and inspection fees and of any significant changes in the administrative conduct of such checks.
5. From a date to be determined by the SPS Sub-Committee referred to in Article 74 of this Agreement, the Parties may agree on the conditions to approve each other's controls as laid down in Article 71(1)(b) with a view to adapting and reciprocally reducing, where applicable, the frequency of physical import checks for the commodities referred to in Article 69(2) of this Agreement.
From that date the Parties may reciprocally approve each other's controls for certain commodities and, consequently, reduce or replace the import checks for these commodities.
6. The conditions required for approval of the adaptation of import checks shall be included in Annex XI to this Agreement by the procedure referred to in Article 74(6) of this Agreement.
Article 73. Safeguard Measures
1. Should the importing Party take, within its territory, measures to control any cause likely to constitute a serious hazard or risk to human, animal or plant health, the exporting Party, without prejudice to paragraph 2 of this Article, shall take equivalent measures to prevent the introduction of the hazard or risk into the territory of the importing Party.
2. On the basis of serious public, animal or plant health grounds, the importing Party may take provisional measures necessary for the protection of public, animal or plant health. For consignments in transport between the Parties, the importing Party shall consider the most suitable and proportionate solution in order to avoid unnecessary disruption to trade.
3. The Party adopting measures under paragraph 2 of this Article shall inform the other Party no later than one working day following the date of adoption of the measures. Upon request by either Party, and in accordance with Article 68(3) of this Agreement, the Parties shall hold consultations regarding the situation within 15 working days of the notification. The Parties shall take due account of any information provided through such consultations and shall endeavour to avoid unnecessary disruption to trade, taking into account, where applicable, the outcome of the consultations provided for in Article 68(3) of this Agreement.
Article 74. Sanitary and Phytosanitary Management (SPS) Sub-Committee
1. The Sanitary and Phytosanitary Management (SPS) Sub- Committee is hereby established. The SPS Sub-Committee shall meet within three months of the entry into force of this Agreement and, thereafter, upon request of either Party or at least once a year. If agreed by the Parties, a meeting of the SPS Sub-Committee may be held by video or audio-conference. The SPS Sub-Committee may also address issues out of session, by correspondence.
2. The SPS Sub-Committee shall have the following functions:
(a) to monitor the implementation of this Chapter and consider any matter relating to this Chapter, and examine all matters which may arise in relation to its implementation;
(b) to review the Annexes to this Chapter, in particular in the light of progress made under the consultations and procedures provided for under this Chapter;
(c) in the light of the review provided for in subparagraph (b) of this paragraph or as otherwise provided in this Chapter, to modify, by means of a decision, Annexes IV to XIV to this Agreement; and
(d) in the light of the review provided for in subparagraph (b) of this paragraph, to give opinions and make recommendations to other bodies as defined in the Institutional, General and Final Provisions of this Agreement.
3. The Parties agree to establish technical working groups, where appropriate, consisting of expert-level representatives of the Parties, which shall identify and address technical and scientific issues arising from the application of this Chapter. When additional expertise is required, the Parties may establish ad hoc groups, including scientific groups. Membership of such ad hoc groups need not be restricted to representatives of the Parties.
4. The SPS Sub-Committee shall regularly report to the Trade Committee established under Article 465 of this Agreement on its activities and decisions taken within its competence.
5. The SPS Sub-Committee shall adopt its working procedures at its first meeting.
6. Any decision, recommendation, report or other action by the SPS Sub-Committee or any group established by the SPS Sub-Committee, relating to the authorisation of imports, exchange of information, trans- parency, recognition of regionalisation, equivalence and alternative measures, and any other issue covered by paragraphs 2 and 3, shall be adopted by consensus between the Parties.
Chapter 5. Customs and Trade Facilitation
Article 75. Objectives
The Parties acknowledge the importance of customs and trade facili- tation matters in the evolving bilateral trade environment. The Parties agree to reinforce cooperation in this area with a view to ensuring that the relevant legislation and procedures, as well as the administrative capacity of the relevant administrations, fulfil the objectives of effective control and support facilitation of legitimate trade as a matter of principle.
The parties recognise that utmost importance shall be given to legitimate public policy objectives including trade facilitation, security and prevention of fraud and a balanced approach to them.
Article 76. Legislation and Procedures
1. The Parties agree that their respective trade and customs legis- lation, as a matter of principle, shall be stable and comprehensive, and that provisions and procedures shall be proportionate, transparent, predictable, non-discriminatory, impartial and applied uniformly and effectively and shall inter alia:
(a) protect and facilitate legitimate trade through effective enforcement of, and compliance with, legislative requirements;
(b) avoid unnecessary or discriminatory burdens on economic oper- ators, prevent fraud and provide further facilitation for economic operators having a high level of compliance;
(c) apply a single administrative document for the purposes of customs declarations;
(d) lead to greater efficiency, transparency and simplification of customs procedures and practices at the border;
(e) apply modern customs techniques, including risk assessment, post clearance controls and company audit methods in order to simplify and facilitate the entry and release of goods;
(f) aim at reducing costs and increasing predictability for economic operators, including small and medium-sized companies;
(g) without prejudice to the application of objective risk-assessment criteria, ensure the non-discriminatory application of requirements and procedures applicable to imports, exports and goods in transit;
(h) apply the international instruments applicable in the field of customs and trade including those developed by the World Customs Organization (hereinafter referred to as the "WCO") (Framework of Standards to Secure and Facilitate Global Trade of 2005, Istanbul Convention on temporary admission of 1990, HS Convention) of 1983, the WTO (e.g. on Valuation), the UN (TIR Convention of 1975, 1982 Convention on harmonization of frontier controls of goods), as well as EC guidelines such as the Customs Blueprints;
(i) take the necessary measures to reflect and implement the provisions of the Revised Kyoto Convention on the Simplification and Harmonization of Customs Procedures of 1973;
(j) provide for advance binding rulings on tariff classification and tules of origin. The Parties ensure that a ruling may be revoked or annulled only after notification to the affected operator and without retroactive effect unless the rulings have been made on the basis of incorrect or incomplete information;
(k) introduce and apply simplified procedures for authorised traders according to objective and non-discriminatory criteria;
(l) set rules that ensure that any penalties imposed for the breach of customs regulations or procedural requirements are proportionate and non-discriminatory and, in their application, do not result in unwarranted and unjustified delays;
(m) apply transparent, non-discriminatory and proportionate rules in respect of the licensing of customs brokers.
2. In order to improve working methods, as well as to ensure non-discrimination, transparency, efficiency, integrity and accountability of operations, the Parties shall:
(a) take further steps towards the reduction, simplification and standardisation of data and documentation required by customs and other agencies;
(b) simplify requirements and formalities wherever possible, in respect of the prompt release and clearance of goods;
(c) provide effective, prompt and non-discriminatory procedures guaranteeing the right of appeal against customs' and other agencies' administrative actions, rulings and decisions affecting the goods submitted to customs. Such procedures for appeal shall be easily accessible, including to small or medium-sized enterprises and any costs shall be reasonable and commensurate with costs in providing for appeals. The Parties shall also take steps to ensure that where a disputed decision is the subject of an appeal, goods are normally released and duty payments may be left pending, subject to any safeguarding measures judged necessary. Where required, this should be subject to the provision of a guarantee, such as a surety or deposit;
(d) ensure that the highest standards of integrity be maintained, in particular at the border, through the application of measures reflecting the principles of the relevant international conventions and instruments in this field, in particular the WCO Revised Arusha Declaration (2003) and the EC Blueprint on Customs ethics (2007).
3. The Parties agree to eliminate:
(a) any requirements for the mandatory use of customs brokers;
(b) any requirements for the mandatory use of pre-shipment inspections or destination inspection.