3. A Party shall be deemed to be in compliance with the obligations in paragraph 2 with respect to an existing import licensing procedure if:
(a) it has notified that procedure to the WTO Committee on Import Licensing provided for in Article 4 of the Import Licensing Agreement together with the information specified in Article 5.2 of that agreement;
(b) in the most recent annual submission due before the date of entry into force of this Agreement for that Party to the WTO Committee on Import Licensing in response to the annual questionnaire on import licensing procedures described in Article 7.3 of the Import Licensing Agreement, it has provided, with respect to that procedure, the information requested in that questionnaire; and
(c) it has included in either the notice described in subparagraph (a) or the annual submission described in subparagraph (b) any information required to be notified to the other Parties under paragraph 6.
4. Each Party shall comply with Article 1.4(a) of the Import Licensing Agreement with respect to any new or modified import licensing procedure. Each Party shall also publish on an official government website any information that it is required to publish under Article 1.4(a) of the Import Licensing Agreement.
5. Each Party shall notify the other Parties of any new import licensing procedures it adopts and any modifications it makes to its existing import licensing procedures, if possible, no later than 60 days before the new procedure or modification takes effect. In no case shall a Party provide the notification later than 60 days after the date of its publication. The notification shall include any information required under paragraph 6. A Party shall be deemed to be in compliance with this obligation if it notifies a new import licensing procedure or a modification to an existing import licensing procedure to the WTO Committee on Import Licensing in accordance with Articles 5.1 through 5.3 of the Import Licensing Agreement, and includes in its notification any information required to be notified to the other Parties under paragraph 6.
6. A notice under paragraph 2, 3, or 5 shall state if, under any import licensing procedure that is a subject of the notice:
(a) the terms of an import license for any product limit the permissible end users of the product; or
(b) the Party imposes any of the following conditions on eligibility for obtaining a license to import any product:
(i) membership in an industry association;
(ii) approval by an industry association of the request for an import license;
(iii) a history of importing the product or similar products;
(iv) minimum importer or end user production capacity;
(v) minimum importer or end user registered capital; or
(vi) a contractual or other relationship between the importer and a distributor in the Party?s territory.
7. A notice that states, under paragraph 6, that there is a limitation on permissible end users or a license-eligibility condition shall:
(a) list all products for which the end-user limitation or license eligibility condition applies; and
(b) describe the end-user limitation or license-eligibility condition.
8. Each Party shall respond within 60 days to a reasonable enquiry from another Party concerning its licensing rules and its procedures for the submission of an application for an import license, including the eligibility of persons, firms and institutions to make an application, the administrative body or bodies to be approached and the list of products subject to the licensing requirement.
9. If a Party denies an import license application with respect to a good of another Party, it shall, on request of the applicant and within a reasonable period after receiving the request, provide the applicant with a written explanation of the reason for the denial.
10. No Party shall apply an import licensing procedure to a good of another Party unless it has, with respect to that procedure, met the requirements of paragraph 2 or 4, as applicable.
Article 2.11. 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 1994 and the Customs Valuation Agreement, mutatis mutandis.
Article 2.12. 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 all goods traded between them including agricultural products.
Article 2.13. Transparency
Article X of the GATT 1994 is incorporated into and made a part of this Agreement, mutatis mutandis.
Article 2.14. Export Duties
1. Except as otherwise provided in this Agreement, no Party shall adopt or maintain any duty, tax or other charge on the export of any good destined to the territory of the other Party.
2. Paragraph 1 shall not apply to the measures set out in Annex 2A (National Treatment, Export Duties, and Import and Export Restrictions).
Article 2.15. Administrative Fees and Formalities
1. Each Party shall ensure, in accordance with Article VIII:1 of the 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 III:2 of the GATT 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 2.16. Non-Tariff Measures
1. Unless otherwise provided, 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 those of this Agreement.
2. Each Party shall ensure the transparency of its non-tariff measures permitted in paragraph 1 and shall ensure that any such measures are not prepared, adopted, or applied with the view to, or with the effect of, creating unnecessary obstacles in trade with the other Party. Any new measure or modification to an existing measure shall be duly notified to the other Party as soon as practicable, but in any event no later than the day the measure takes effect.
3. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings relating to non-tariff measures are promptly published, including on the internet where feasible, or otherwise made available in such a manner as to enable the other Party to become acquainted with them.
4. 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 Subcommittee on Trade in Goods by notifying the other Party at least 30 days before the date of the next scheduled meeting of the Subcommittee on Trade in Goods. A nomination of a non-tariff measure for review shall include reasons for its nomination and, if possible, suggested solutions. The Subcommittee on Trade in Goods shall immediately review the measure with a view to securing a mutually agreed solution to the matter. Review by the Subcommittee on Trade in Goods is without prejudice to the Parties' rights under Chapter 18 (Dispute Settlement).
The results of the discussions will be reported to the Joint Committee.
Article 2.17. State Trading Enterprises
Nothing in this Agreement shall be construed to prevent a Party from maintaining 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 2.18. Revision Clause
1. Upon request of a Party, the Parties shall consult to consider accelerating, or broadening the scope of the elimination of customs duties as set out in Annex 2B (Reduction or Elimination of Customs Duties). Further commitments between the Parties to accelerate the elimination of a customs duty on a good, or to include a good in Annex 2B (Reduction or Elimination of Customs Duties) shall supersede any duty rate or staging category determined pursuant to their respective Schedules of Tariff Commitments. These commitments shall enter into force after the Parties have exchanged notification certifying that they have completed the necessary internal legal procedures and on such dates as may be agreed between the Parties.
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 of Tariff Commitments in Annex 2B (Reduction or Elimination of Customs Duties). 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 their 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 their respective Schedule.
3. For greater certainty with respect to paragraph 2, a Party may:
(a) raise a customs duty back to the level established in its respective Schedule of Tariff Commitments in Annex 2B (Reduction or Elimination of Customs Duties) following a unilateral reduction; or
(b) maintain or increase a customs duty as authorized by the Dispute Settlement Body of the WTO.
Article 2.19. Exchange of Data
1. The Parties recognize the value of trade data in accurately analyzing 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 Subcommittee 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 in Goods under the Joint Committee comprising representatives of each Party.
2. The Subcommittee shall meet upon request of a Party or of the Joint Committee to consider any matter not covered by another Subcommittee arising under this Chapter.
3. The functions of the Subcommittee shall include, inter alia:
(a) 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;
(b) addressing barriers to trade in goods between the Parties including those related to non-tariff measures which may restrict trade in goods between the Parties and, if appropriate, referring such matters to the Joint Committee for its consideration;
(c) providing advice and recommendations to the Joint Committee on cooperation needs regarding trade in goods matters;
(d) exchanging data on trade in goods in accordance with Article 2.19;
(e) assessing matters that relate to trade in goods and undertaking any additional work that the Joint Committee may assign to it; and
(f) reviewing and monitoring any other matter related to the implementation of this Chapter.
Chapter 3. RULES OF ORIGIN
Section A. Origin Determination
Article 3.1. Definitions
For the purposes of this Chapter:
aquaculture means the farming of aquatic organisms including fish, molluscs, crustaceans, other aquatic invertebrates, and aquatic plants, from seedstock such as eggs, fry, fingerlings, and larvae, by intervention in the rearing or growth processes to enhance production, such as, inter alia, regular stocking, feeding, protection from predators;
CIF value means the price actually paid or payable to the exporter for a product when the product is loaded out of the carrier, at the port of importation, including the cost of the product, insurance, and freight necessary to deliver the product to the named port of destination. The valuation shall be made in accordance with Article VII of the GATT 1994, including its notes and supplementary provision thereof, and the Customs Valuation Agreement;
competent authority means:
(a) in the case of the UAE, the Ministry of Economy, or its successor; and
(b) in the case of Colombia, Directorate on National Taxes and Customs (DIAN), or its successor;
consignment means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;
customs authority means:
(a) in the case of the UAE, the Federal Authority of Identity, Citizenship, Customs and Port Security, or its successor; and
(b) in the case of Colombia, Directorate on National Taxes and Customs (DIAN), or its successor;
customs value means the value as determined in accordance with Article VII of the GATT 1994 and its interpretative notes, and the Customs Valuation Agreement;
generally accepted accounting principles means the recognised consensus or substantial authoritative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information and the preparation of financial statements. These standards may encompass broad guidelines of general application as well as detailed standards, practices, and procedures;
good means a material or product that has been produced or obtained, even if it is intended for later use in another production operation etc.;
HS means the "Chapters" (two-digit codes), the "headings" (four-digit codes), or the "subheadings" (six-digit codes) used in the nomenclature of the 2022 version of the Harmonized System;
indirect material means a material used in the production, testing, or inspection of a good but not physically incorporated into the good, or a material used in the maintenance of buildings or the operation of equipment associated with the production of a good, including:
(a) Fuel and energy;
(b) tools, dies, and molds;
(c) spare parts and materials used in the maintenance of equipment and buildings;
(d) lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings;
(e) gloves, glasses, footwear, clothing, and safety equipment;
(f) equipment, devices, and supplies used for testing or inspecting the goods;
(g) catalysts and solvents;
(h) any other material that is not incorporated into the good but for which the use in the production of the good can reasonably be demonstrated to be a part of that production;
manufacture means any kind of working or processing, including assembly or specific operations;
material means any ingredient, raw material, compound or part, etc., used in the production of a good;
non-originating good or non-originating material means a good or material that does not qualify as originating under this Chapter;
originating good or originating material means a good or material that does qualify as originating under this Chapter;
production means operations including growing, cultivating, raising, mining, harvesting, fishing, aquaculture, trapping, hunting, capturing, extracting, manufacturing, processing, assembling, or disassembling a good; and
QVC means qualifying value added content of a good expressed as a percentage.
Article 3.2. Originating Goods
For the purpose of implementing this Agreement, goods shall be considered as originating in the territory of a Party, if:
(a) goods are wholly obtained or produced there according to Article 3.3; or
(b) goods are not wholly obtained or produced entirely there, provided that the good has satisfied the requirements of Article 3.4; or
(c) goods are produced there exclusively from originating materials. and the good meets all other applicable requirements of this Chapter.
Article 3.3. Wholly Obtained or Produced Goods
For the purposes of this Agreement, the following goods shall be considered as being wholly obtained or produced in the territory of a Party:
(a) plants and plant products grown, collected, and harvested there;
(b) live animals born and raised there;
(c) products obtained from live animals there;
(d) mineral products and natural resources extracted or taken from that Party's soil, subsoil, waters, seabed, or beneath the seabed;
(e) products obtained from hunting, trapping, collecting, capturing, fishing, or aquaculture conducted there;
(f) product of sea fishing and other marine products taken from outside the territory of the Parties by a vessel and/or produced or obtained by a factory ship registered, recorded, listed or licensed with a Party and flying its flag;
(g) products, other than products of sea fishing and other marine products, taken or extracted from the seabed, ocean floor, or the subsoil of outside the territories of any of the Parties provided that the Party or person has the right to exploit such seabed, ocean floor, or subsoil;
(h) raw materials recovered from used goods collected there;
(i) waste or scrap resulting from utilisation, consumption, or manufacturing operations conducted there, fit only for recovery of raw materials; and
(j) products produced or obtained there exclusively from products referred to in subparagraphs (a) through (i), or from their derivatives, at any stage of production.
Article 3.4. Sufficient Working or Production
1. For the purposes of Article 3.2 (b), a good shall be deemed to be originating if the good satisfies the rule applicable to it as set out in Annex 3A (List of Product Specific Rules (PSRs)).
2. The Joint Committee may modify Annex 3A (List of Product Specific Rules (PSRs)) by mutual agreement.
Article 3.5. Intermediate Goods
For a non-originating material that undergoes sufficient production in the territory of a Party as provided in Article 3.4, the resulting good shall be considered as originating and no account shall be taken of the non-originating material contained therein when that good is used in the subsequent production of another good.
Article 3.6. De Minimis
Notwithstanding Article 3.4, a good will be considered to have undergone a change in tariff classification if:
(a) the value of all non-originating materials that are used in the production of the good and that do not undergo the applicable change in tariff classification does not exceed 10% of the Ex-Works price of the good; and
(b) for goods provided for in Chapters 50 through 63 of the HS code, the weight or value of all non-originating materials that are used in the production of the good and that do not undergo the applicable change in tariff classification does not exceed 10% of the weight or the Ex-Works price of the good.
Article 3.7. Indirect Materials
An "indirect material" shall be considered to be an originating material without regard to where it is produced.
Article 3.8. Accumulation
1. Originating goods from the territory of a Party, used in the production of a good in the territory of the other Party, shall be considered to originate in the territory of the other Party.
2. Notwithstanding paragraph 1, an originating material from a Party that does not undergo processing beyond the minimal or insufficient operations listed in Article 3.9 in the other Party shall retain its originating status of the former Party.
3. The Joint Committee may agree to review this Article with a view to providing for other forms of accumulation for the purpose of qualifying goods as originating goods under this Agreement.
Article 3.9. Insufficient Operations
Whether or not the requirements of Article 3.4 are satisfied, a good shall not be considered to be originating in the territory of a Party if the following operations are undertaken exclusively by itself or in combination in the territory of that Party:
(a) operations to ensure the preservation of products in good condition such as drying, freezing, ventilation, chilling, and like operations;
(b) simple operations consisting of removal of dust, oxide, oil, paint, or other coverings, sifting or screening, sorting, classifying, matching (including assembly of sets of articles), washing, cleaning, roll division, cutting;
(c) changes in packing and breaking up and assembly of consignments;
(d) simple cutting, placing in bottles, slicing and re-packing in flasks, bags, cans, cases, boxes, fixing on cards or boards, and all other simple packing operations;
(e) affixing of marks, labels, logos, or other like distinguishing signs on goods or their packaging;
(f) slaughter of animals;
(g) simple (1) painting and polishing operations, including applying oil;
(h) husking, partial or total bleaching, polishing, and glazing of cereals and rice;
(i) ironing or pressing of textiles;
(j) operations to colour or flavour sugar, or form sugar lumps partial or total milling of crystal sugar;
(k) peeling, stoning, and shelling, of fruits, nuts, and vegetables;
(l) sharpening, simple grinding, or simple cutting;
(m) sifting, screening, sorting, classifying, grading, matching (including the making-up of sets of articles);
(n) diluting in water or other substances, provided that the characteristics of the good remain unchanged;
(o) simple (1) assembly of parts of articles to constitute a complete article or disassembly of products into parts;
(p) simple mixing (2) of products, whether or not of different kinds, simple mixing of sugar with any material;
(q) any combination of two or more operations referred to in subparagraphs (a) through (p).
Article 3.10. Accessories, Spare Parts, Tools
1. Accessories, spare parts, tools, and instructional or other information materials delivered with a good that form part of the good?s standard accessories, spare parts, tools, and instructional or other information materials shall be regarded as a part of the good, and shall be disregarded in determining whether or not all the non-originating materials used in the production of the originating goods undergo the applicable change in tariff classification provided that:
(a) The accessories, spare parts, tools, and instructional or other information materials are classified with and not invoiced separately from the good; and
(b) The quantities and value of the accessories, spare parts, tools, and instructional or other information materials presented with the good are customary for the good.