(a) ruling on tariff classification;
(b) information on the application of customs valuation criteria for a particular case, in accordance with the Article VII of GATT 1994 and Customs Valuation Agreement; or
(c) any such other matters as the Parties may agree.
2. An advanced ruling and information issued by a Party shall be binding on that Party in respect of the applicant that had sought it.
3. Each Party shall issue an advance ruling within 90 days after its customs authority receives a request, provided that the requester has submitted all information that the Party requires, including, if the Party requests, a sample of the good for which the requester is seeking an advance ruling. In issuing an advance ruling, the Party shall take into account facts and circumstances the requester has provided. For greater certainty, a Party may decline to issue an advance ruling if the facts and circumstances forming the basis of the advance ruling are the subject of administrative or judicial review. A Party that, pursuant to this paragraph, declines to issue an advance ruling shall promptly notify the requester in writing, setting forth the relevant facts and the basis for its decision to decline to issue the advance ruling.
4. Each Party shall provide that advance rulings shall take effect on the date they are issued, or on another date specified in the ruling, provided that the facts or circumstances on which the ruling is based remain unchanged.
5. The issuing Party may modify or revoke an advance ruling and shall promptly provide written notice to the requester.
6. Each Party shall ensure that requesters have access to administrative review of advance rulings.
7. If a requester provides false information or omits relevant facts or circumstances relating to the advance ruling, or does not act in accordance with the rulingâs terms and conditions, the importing Party may apply appropriate measures, including civil, criminal, and administrative actions, monetary penalties, or other sanctions.
Article 4.11. Consultation
1. Either customs authority at any time may request for consultations with the other customs authority on any matter arising from the operation or implementation of this Chapter and Chapter three (Rules of Origin and Origin Procedures), in cases where there are reasonable grounds or truth provided by the requesting Party. Such consultations shall be conducted through the relevant contact points.
2. In the event that such consultations fail to resolve any such matter, the requesting Party may refer the matter to the Committee on Customs and Trade Facilitation referred to in Article 4.12.
Article 4.12. Committee on Customs and Trade Facilitation
1. The Parties hereby establish Committee on Customs and Trade Facilitation (hereinafter referred to as the "Committee") composed of the customs authorities of the Parties. Other competent authorities of the Parties may join the Committee if the Parties deem it necessary.
2. The Committee shall ensure the proper functioning of this Chapter and Chapter Three (Rules of Origin and Origin Procedures) and examine all the issues arising from the application of these Chapters.
3. The functions of the Committee may include:
(a) reviewing, discussing, and proposing effective, uniform, and consistent administration of this Chapter and Chapter Three (Rules of Origin and Origin Procedures),
(b) reviewing, discussing, and proposing uniform regulations for the effective, uniform, and consistent interpretation of this Chapter and Chapter Three (Rules of Origin and Origin Procedures);
(c) revising Amnex 3-A (Product Specific Rules) on the basis of the transposition of the Harmonized System (hereinafter referred to as the "HS");
(d) consulting on and endeavoring to resolve any difference that may arise between the Parties on matters related to the classification of goods under the HS;
(e) reviewing the possibility of revision and reaching agreement on revision of this Chapter and Chapter Three (Rules of Origin and Origin Procedures).
4. The Committee shall meet every year, or as otherwise agreed, alternating between the Parties.
Chapter 5. TRADE REMEDIES
Section A. Safeguard Measures
Article 5.1. Definitions
For purposes of Section A:
competent authority means:
(a) for Korea, the Korea Trade Commission, or its successor; and
(b) for Indonesia, the Ministry of Trade, or its successor;
domestic industry means, with respect to an imported good, the producers as a whole of the like or directly competitive good operating in the territory of a Party, or those whose collective output of the like or directly competitive good constitutes a major proportion of the total domestic production of that good;
safeguard measure means a measure described in Article 5.2;
serious injury means a significant overall impairment in the position of a domestic industry;
substantial cause means a cause that is important and not less than any other cause;
threat of serious injury means serious injury that, on the basis of facts and not merely on allegation, conjecture, or remote possibility, is clearly imminent; and
transition period means the ten-year period following the date of entry into force of this Agreement, except that for any good for which the Schedule in Annex 2-A (Reduction or Elimination of Custom Duties) of the Party applying the safeguard measure provides for the Party to eliminate its tariffs on the good over a period of more than ten years, transition period means the tariff elimination period for the good set out in that Schedule.
Article 5.2. Application of a Safeguard Measure
If, as a result of the reduction or elimination of a customs duty under this Agreement, an originating good of the other Party is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that the imports of such originating good of the other Party constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party may:
(a) suspend the further reduction of any rate of customs duty on the good provided for under this Agreement;
(b) increase the rate of customs duty on the good to a level not to exceed the lesser of:
(i) the most-favoured-nation (hereinafter referred to as "MFN") applied rate of duty on the good in effect at the time the measure is taken; or
(ii) the base rate of customs duty specified in the Schedules in Annex 2-A (Reduction or Elimination of Customs Duties) pursuant to Article 2.4 (Reduction or Elimination of Customs Duties); or
(iii) the MFN applied rate of duty on the good in effecton the day immediately preceding the date of entry into force of this Agreement.
Article 5.3. Conditions and Limitations
1. A Party shall notify the other Party in writing immediately after the initiation of an investigation described in paragraph 2, and should conduct a public hearing and consultations after the initiation as practicable with a view to reviewing the information arising from the initiation of the investigation.
2. A Party shall apply a safeguard measure only following an investigation by the Party's competent authorities in accordance with Articles 3 and 4.2(c) of the Safeguards Agreement, and to this end, Articles 3 and 4.2(c) of the Safeguards Agreement are incorporated into and made a part of this Agreement, mutatis mutandis.
3. In the investigation described in paragraph 2, the Party shall comply with the requirements of Article 4.2(a) of the Safeguards Agreement, and to this end, Article 4.2(a) of the Safeguards Agreement is incorporated into and made a part of this Agreement, mutatis mutandis.
4. Each Party shall ensure that its competent authorities complete any such investigation within six months of its date of initiation.
5. Neither Party may apply a safeguard measure:
(a) except to the extent, and for such time, as may be necessary to prevent or remedy serious injury and to facilitate adjustment;
(b) for a period exceeding two years, except that the period may be extended by up to one year if the competent authorities of the importing Party determine, in conformity with the procedures specified in this Article, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting, provided that the total period of application of a safeguard measure, including the period of initial application and any extension thereof, shall not exceed three years; or
(c) beyond the expiration of the transition period, except with the consent of the other Party.
6. A Party shall not apply a safeguard measure more than once on the same good until a period of time equal to the duration of the previous safeguard measure, including any extension, has elapsed commencing from the termination of the previous safeguard measure, provided that the period of non-application is at least two years.
7. Where the expected duration of the safeguard measure is over one year, the importing Party shall progressively liberalize it at regular intervals.
8. When a Party terminates a safeguard measure, the rate of customs duty shall be the rate that, according to the Party's Schedule in Annex 2-A (Reduction or Elimination of Custom Duties), would have been in effect but for the measure.
Article 5.4. Provisional Measures
1. In critical circumstances where delay would cause damage that would be difficult to repair, a Party may apply a safeguard measure on a provisional basis pursuant to a preliminary determination by its competent authorities that there is clear evidence that imports of an originating good of the other Party have increased as the result of the reduction or elimination of a customs duty under this Agreement, and such imports constitute a substantial cause of serious injury, or threat thereof, to the domestic industry.
2. Before a Party's competent authorities may make a preliminary determination, the Party shall publish a public notice in its official journal setting forth how interested parties, including importers and exporters, may obtain a non-confidential copy of the application requesting a provisional safeguard measure, and shall provide interested parties at least 20 days after the date it publishes the notice to submit evidence and views regarding the application of a provisional measure. A Party may not apply a provisional measure until at least 45 days after the date its competent authorities initiate an investigation.
3. The applying Party shall notify the other Party before applying a safeguard measure on a provisional basis, and shall initiate consultations immediately after applying the measure.
4. The duration of any provisional measure shall not exceed 180 days, during which time the Party shall comply with the requirements of Articles 5.3.2 and 5.3.3.
5. The Party shall promptly refund any tariff increases if the investigation described in Article 5.3.2 does not result in a finding that the requirements of Article 5.2 are met. The duration of any provisional measure shall be counted as part of the period described in Article 5.3.5(b).
Article 5.5. Compensation
1. Within 30 days after a Party applies a safeguard measure, the Party shall afford an opportunity for the other Party to consult with it regarding appropriate trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the measure. The applying Party shall provide such compensation as the Parties mutually agree.
2. If the Parties are unable to agree on compensation through consultations under paragraph 1 within 30 days after the consultations begin, the Party against whose originating good the measure is applied may suspend the application of concessions with respect to originating goods of the applying Party that have trade effects substantially equivalent to the safeguard measure.
3. The right of suspension referred to in paragraph 2 shall not be exercised for the first two years that the safeguard measure is in effect, provided that the 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 Section.
4. The applying Party's obligation to provide compensation under paragraph 1 and the other Party's right to suspend concessions under paragraph 2 shall terminate on the date the safeguard measure terminates.
5. Any compensation shall be based on the total period of application of the provisional safeguard measure and of the safeguard measure.
Article 5.6. Global Safeguard Measures
1. Each Party retains its rights and obligations under Article XIX of GATT 1994 and the Safeguards Agreement. This Agreement does not confer any additional rights or obligations on the Parties with regard to measures taken under Article XIX of GATT 1994 and the Safeguards Agreement, except that a Party taking a global safeguard measure may exclude imports of an originating good of the other Party if such imports are not a substantial cause of serious injury or threat thereof.
2. At the request of the other Party, the Party intending to take a global safeguard measure may provide immediately ad hoc written notification of all pertinent information on the initiation of a safeguard investigation, the preliminary determination and the final finding of the investigation.
3. Neither Party may apply, with respect to the same good, at the same time:
(a) a safeguard measure; and
(b) a measure under Article XIX of GATT 1994 and the Safeguards Agreement.
Notwithstanding the provisions of this Article, neither Party may impose a safeguard measure on a good to which a measure is being applied pursuant to Article XIX of GATT 1994 and the Safeguards Agreement. When a Party intends to apply, pursuant to Article XIX of GATT 1994 and the Safeguards Agreement, a measure on a good to which a safeguard measure is being applied, it shall terminate the safeguard measure prior to the imposition of the measure to be applied pursuant to Article XIX of GATT 1994 and the Safeguards Agreement.
Section B. Anti-Dumping and Countervailing Duties
Article 5.7. General Provisions
1. Except as otherwise provided for in this Agreement, each Party retains its rights and obligations under the WTO Agreement with regard to the application of anti-dumping and countervailing duties.
2. The Parties shall ensure, immediately after any imposition of provisional measures and in any case before the final determination, full and meaningful disclosure of all essential facts and considerations which form the basis for the decision to apply measures, without prejudice to Article 6.5 of the Anti-Dumping Agreement and Article 12.4 of the SCM Agreement. Disclosures shall be made in writing, and interested parties shall be allowed sufficient time to make their comments.
3. The Parties shall observe the following practices in anti-dumping or countervailing cases between them in order to enhance transparency in the implementation of the WTO Agreement:
(a) when anti-dumping margins are established, assessed, or reviewed under Articles 2, 9.3, 9.5, and 11 of the Anti-Dumping Agreement regardless of the comparison bases under Article 2.4.2 of the Anti-Dumping Agreement, all individual margins, whether positive or negative, should be counted toward the average;
(b) if a decision is taken to impose an anti-dumping duty pursuant to Article 9.1 of the Anti-Dumping Agreement, the Party taking such a decision may apply the ‘lesser duty’ rule, by imposing a duty which is less than the dumping margin where such lesser duty would be adequate to remove the injury to the domestic industry;
(c) When a Party considers imposing an anti-dumping or countervailing duty, careful consideration should be given to the interests of the other Party; and
(d) The investigating Party shall request an exporter or producer in the territory of the other Party for a timely response to its questionnaires. When the investigating Party finds major deficiency in information in a questionnaire response from relevant exporter or producer received before the deadline or requires clarifications for purposes of investigation, the investigating Party shall demand missing information or request clarification of information concerning the answers to the questionnaires. This procedure shall not be used to cause unwarranted delays in the investigation or to circumvent the deadlines.
Article 5.8. Notification and Consultations
1. Upon receipt by a Party’s competent authorities of a properly documented anti-dumping application with respect to imports from the other Party, and no later than 15 days before initiating an investigation, the Party shall provide written notification to the other Party of its receipt of the application.
2. Upon receipt by a Party’s competent authorities of a properly documented countervailing duty application with respect to imports from the other Party, and before initiating an investigation, the Party shall provide written notification to the other Party of its receipt of the application and afford the other Party a meeting to consult with its competent authorities regarding the application.
3. The Parties affirm their rights and obligations under Annex II of the Anti-Dumping Agreement and in particular its paragraph 5, and under Articles 12.7 and 12.8 of the SCM Agreement. In the event the investigating authorities intend to make a determination on the basis of the facts available pursuant to Article 6.8 of the Anti-Dumping Agreement and Article 12.7 of the SCM Agreement, the investigating authorities shall provide a reasoned and adequate explanation of:
(a) indication of conditions under which the use of facts available is applicable;
(b) the information which interested parties have failed to submit to the investigating authorities; and
(c) the facts with which the investigating authorities decided to replace the information referred to in subparagraph (b).
Article 5.9. Investigation after Termination Resulting from a Review
A Party shall examine, with special care, any application for initiation of an anti-dumping investigation on an originating good of the other Party on which anti-dumping measures have been terminated in the previous 12 months as a result of a review. Unless this pre-initiation examination indicates that the circumstances have changed, the investigation shall not proceed.
Article 5.10. Cumulative Assessment
When imports from more than one country are simultaneously subject to an anti-dumping or countervailing duty investigation, a Party shall examine, with special care, whether the cumulative assessment of the effect of the imports from the other Party is appropriate in light of the conditions of competition between the imported goods and the conditions of competition between the imported goods and the like domestic goods.
Article 5.11. Cooperation In Anti-Circumvention Investigations
1. The Parties agree to cooperate in preventing circumvention in accordance with Articles 5 and 6 of the Anti-Dumping Agreement.
2. The Parties agree to carry out anti-circumvention investigations in a transparent way and to respect the right of all interested parties to defend their concerns in every step of the anti-circumvention investigation.
3. At the request of the other Party, the Party conducting an anticircumvention investigation shall provide non-confidential information regarding the companies under investigation to the other Party.
4. In any proceedings in which a Party determines to conduct an on-site verification in the territory of the other Party, it shall notify the companies under investigation in advance.
5. The Party conducting an anti-circumvention investigation shall inform, before the final determination, all interested parties in the territory of the other Party of the essential facts under consideration, which form the basis for the assessment on whether to apply the measure or to grant an exemption. The Party will provide adequate opportunity for all interested parties to make comments on such assessment. Such disclosure of the essential facts should take place within a reasonable period of time for interested parties to defend their interests. Interested parties may also apply to be heard.
Chapter 6. TRADE IN SERVICES
Article 6.1. Definitions
For purposes of this Chapter:
aircraft repair and maintenance services means such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service and do not include so-called line maintenance;
commercial presence means any type of business or professional establishment, including through:
(a) the constitution, acquisition or maintenance of a juridical person; or
(b) the creation or maintenance of a branch or a representative office,
within the territory of a Party for the purpose of supplying a service;
computer reservation system (CRS) services means services provided by computerized systems that contain information about air carriers’ schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued;
juridical person of the other Party means a juridical person which is either:
(a) constituted or otherwise organized under the laws and regulations of the other Party, and is engaged in substantive business operations in the territory of the other Party; or
(b) in the case of the supply of a service through commercial presence, owned or controlled by:
(i) natural persons of the other Party; or
(ii) juridical persons of the other Party identified under subparagraph (a);
a juridical person is:
(a) owned by persons of a Party if more than 50 per cent of the equity interest in it is beneficially owned by persons of that Party;
(b) controlled by persons of a Party if such persons have the power to name a majority of its directors or otherwise to legally direct its actions;
(c) affiliated with another person when it controls, or is controlled by, that other person; or when it and the other person are both controlled by the same person;
measure means any measure as defined in Article 1.1 (General Definitions) by a party affecting trade in services including measures in respect of:
(a) the purchase, payment, or use of a service;
(b) the access to and use of, in connection with the supply of a service, services which are required by a Party to be offered to the public generally; and
(c) the presence, including commercial presence, in its territory of a service supplier of the other Party;
monopoly supplier of a service means any person, public or private, which in the relevant market of the territory of a Party is authorized or established formally or in effect by that Party as the sole supplier of that service;
natural person of the other Party means a natural person who resides in the territory of the other Party or elsewhere and who under the law of the other Party is a national of the other Party;
person means cither a natural person or a juridical person; sector of a service means,
(a) with reference to a specific commitment, one or more, or all, subsectors of that service, as specified in a Party's Schedule;
(b) otherwise, the whole of that service sector, including all of its subsectors;
selling and marketing of air transport services means opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution. These activities do not include the pricing of air transport services nor the applicable conditions;
services includes any service in any sector except services supplied in the exercise of governmental authority;
a service supplied in the exercise of governmental authority means any service which is supplied neither on a commercial basis nor in competition with one or more service suppliers;
service consumer means any person that receives or uses a service; service of the other Party means a service which is supplied:
(a) from or in the territory of the other Party, or in the case of maritime transport, by a vessel registered under the laws of the other Party, or by a person of the other Party which supplies the service through the operation of a vessel and/or its use in whole or in part; or
(b) in the case of the supply of a service through commercial presence or through the presence of natural persons, by a service supplier of the other Party;
service supplier means any person that supplies a service; (1)
supply of a service includes the production, distribution, marketing, sale and delivery of a service;
trade in services is defined as the supply of a service:
(a) from the territory of a Party into the territory of the other Party;
(b) in the territory of a Party to the service consumer of the other Party;
(c) by a service supplier of a Party, through commercial presence in the territory of the other Party; and
(d) by a service supplier of a Party, through presence of natural persons of a Party in the territory of the other Party; and
traffic rights means the right for scheduled and non-scheduled services to operate and/or to carry passengers, cargo and mail for remuneration or hire from, to, within, or over the territory of a Party, including points to be served, routes to be operated, types of traffic to be carried, capacity to be provided, tariffs to be charged and their conditions, and criteria for designation of airlines, including such criteria as number, ownership, and control.
Article 6.2. Scope
1. This Chapter applies to measures by a Party affecting trade in services.
2. For purposes of this Chapter, measures by a Party means measures taken by:
(a) central, regional, or local governments and authorities; and
(b) non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities.
3. This Chapter shall not apply to:
(a) a service supplied in the exercise of governmental authority within the territory of each respective Party;
(b) measures affecting air traffic rights, however granted; or to measures affecting services directly related to the exercise of air traffic rights, other than measures affecting:
(i) aircraft repair and maintenance services;