2. Customs procedures of each Party shall, where possible and to the extent permitted by their respective customs laws and regulations, conform with the standards and recommended practices of the World Customs Organization (WCO) and other international organisations as relevant to customs.
3. The customs authority of each Party shall review its customs procedures and practices with a view to their simplification to facilitate trade.
Article 4.7. Customs Clearance
1. Each Party shall endeavor to apply customs procedures in a predictable, consistent, and transparent manner for the efficient release of goods in order to facilitate trade between the Parties.
2. For prompt release of goods traded between the Parties, to the extent possible, each Party may:
(a) provide for the release of goods within a period no greater than the period that is required to ensure compliance with its customs laws or regulations;
(b) make use of information and communications technology;
(c) adopt or maintain procedures allowing, to the extent possible, goods to be released at the point of arrival, without temporary transfer to warehouses or other locations;
(d) harmonise its customs procedures, as far as possible, with relevant international standards and best practices, such as those recommended by the WCO; and
(e) adopt or maintain procedures allowing the release of goods prior to, and without prejudice to, the final determination by its customs authority of the applicable customs duties, taxes, and fees, subject to domestic procedures.
3. Under normal circumstances, the Parties shall endeavor to ensure the simultaneous inspection of goods by the competent national authorities when goods are entering or leaving the Partiesâ customs territory at a single time and place.
Article 4.8. Trade Facilitation Measures for Authorised Operators
1. Each Party shall provide additional trade facilitation measures related to import, export, or transit formalities and procedures, pursuant to paragraph 3, to operators who meet specified criteria, hereinafter called "authorised operators". Alternatively, a Party may offer such trade facilitation measures through customs procedures generally available to all operators and is not required to establish a separate scheme.
2. The specified criteria to qualify as an authorised operator shall be related to compliance, or the risk of non-compliance, with requirements specified in a Party's laws, regulations or procedures.
(a) Such criteria, which shall be published, may include:
(i) an appropriate record of compliance with customs and other related laws and regulations;
(ii) a system of managing records to allow for necessary internal controls;
(iii) financial solvency, including, where appropriate, provision of a sufficient security or guarantee; and
(iv) supply chain security.
(b) Such criteria shall not:
(i) be designed or applied so as to afford or create arbitrary or unjustifiable discrimination between operators where the same conditions prevail; and.
(ii) to the extent possible, restrict the participation of small and medium-sized enterprises.
3. The trade facilitation measures provided pursuant to paragraph 1 shall include at least three of the following measures (1):
(a) low documentary and data requirements, as appropriate;
(b) low rate of physical inspections and examinations, as appropriate;
(c) rapid release time, as appropriate;
(d) deferred payment of duties, taxes, fees, and charges;
(e) use of comprehensive guarantees or reduced guarantees; and
(f) clearance of goods at the premises of the authorised operator or another place authorised by the relevant customs authority.
4. Each Party is encouraged to develop authorised operator schemes based on international standards, where such standards exist, except when such standards would be an inappropriate or ineffective means for the fulfilment of the legitimate objectives pursued.
5. In order to enhance the trade facilitation measures provided to operators, a Party shall afford to the other Party the possibility of negotiating mutual recognition of authorised operator schemes.
6. Each Party is encouraged to exchange relevant information about authorised operator schemes in force.
Article 4.9. Risk Management
1. In order to facilitate release of goods traded between the Parties, the customs authority of each Party shall apply risk management methodology.
2. The customs authority of each Party is encouraged to exchange information, including best practices, on risk management techniques and other enforcement techniques.
3. Each Party shall endeavor to adopt or maintain risk management systems that enable its customs authority to focus its inspection activities on high-risk goods and that simplify the clearance and movement of low-risk goods.
4. The Parties shall design and apply risk management in a manner as to avoid arbitrary or unjustifiable discrimination, or a disguised restriction on international trade.
5. The Parties shall base risk management on an assessment of risk through appropriate selectivity criteria. Such selectivity criteria may include, inter alia, the Harmonized System Code, nature and description of the goods, country of origin, country from which the goods were shipped, value of the goods, compliance record or traders, and type of means of transport.
Article 4.10. Expedited Shipments
1. Each Party shall adopt or maintain customs procedures to expedite the clearance of expedited shipments for at least those goods entered through air cargo facilities while maintaining appropriate customs control and selection, by:
(a) providing for pre-arrival processing of information related to expedited shipments to the extent possible;
(b) permitting, to the extent possible, the single submission of information covering all goods contained in an expedited shipment, through electronic means;
(c) minimizing, to the extent possible, the documentation required for the release of expedited shipments;
(d) providing for expedited shipments to be released under normal circumstances as rapidly as possible, and within six hours, when possible, after the arrival of the goods and submission of the information required for release;
(e) endeavouring to apply the treatment in subparagraphs (a) through (d) to shipments of any weight or value recognising that a Party is permitted to require additional entry procedures, including declarations and supporting documentation and payment of duties and taxes, and to limit such treatment based on the type of goods, provided that the treatment is not limited to low value goods such as documents; and
(f) providing, to the extent possible, for a de minimis shipment value or dutiable amount for which customs duties and taxes will not be collected, aside from certain prescribed goods. Internal taxes, such as value added taxes and excise taxes, applied to imports consistently with Article I of GATT 1994, are not subject to this subparagraph.
2. Nothing in paragraph 1 shall affect the right of a Party to examine, detain, seize, confiscate or refuse the entry of goods, or to carry out post-clearance audit, including in connection with the use of risk management systems.
Further, nothing in paragraph 1 shall prevent a Party from requiring, as a condition for release, the submission of additional information and the fulfillment of non-automatic licensing requirement.
Article 4.11. Time Release Studies
1. The Parties are encouraged to measure the time required for the release of goods by the customs authority periodically and in a consistent manner, and to publish the findings thereof, using tools such as the Guide to Measure the Time Required for the Release of Goods issued by the WCO with a view to assessing their trade facilitation measures and to considering opportunities for further improvement of the time required for the release of goods.
2. A Party is encouraged to share with the other Party their experiences in the time release studies referred to in paragraph 1, including methodologies used and bottlenecks identified.
Article 4.12. Temporary Admission of Goods
1. Each Party shall allow temporary admission of goods in accordance with relevant international standards applied by, and international agreements applicable to, such Party and its laws and regulations.
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, totally, or partially, from payment of customs duties. Such goods must be imported for a specific purpose and must be intended for re-exportation within a specified period and without having undergone any change except normal depreciation due to the use made of them.
Article 4.13. Use of Automated Systems
1. The customs authorities of the Parties shall make cooperative efforts to promote the use of information and communications technology in their customs procedures to support customs operations, including sharing best practices, for the purposes of improving their customs procedures.
2. The customs authorities of each Party, in implementing initiatives which provide for the use of paperless trading, shall take into account the methods agreed by the WCO, including adoption of the WCO data model for the simplification and harmonisation of data.
3. The customs authorities of each Party shall work towards having electronic means for all its customs reporting requirements, as soon as practicable.
4. The introduction and enhancement of information technology shall, to the greatest extent possible, be carried out in consultation with all relevant parties including businesses directly affected.
5. Each Party shall develop or maintain single window systems within the capability of that Party, to facilitate a single, electronic submission of all information required by customs and other legislation for the exportation, importation, and transit of goods.
Article 4.14. Review and Appeal
1. Each Party shall ensure that with respect to its determinations on customs matters, importers in its territory have access to:
(a) administrative review issued by a superior official different from who made the determination; and
(b) judicial review of the determination or decision taken at the final level of administrative review.
2. Notice of the decision on appeal shall be given to the appellant and the reasons for such decision shall be provided in writing.
Article 4.15. Penalties Disciplines
Each Party shall maintain measures for the imposition of civil or administrative penalties or sanctions and, where appropriate, criminal sanctions for violations of its customs laws and other laws relating to customs according to its laws and regulations.
Article 4.16. Enquiry Points
1. Each Party shall designate one or more enquiry points to deal with enquiries from interested persons from either Party on customs matters arising from the implementation of this Agreement, and provide details of such enquiry points to the other Party's customs administration.
2. Information concerning the procedures for making such enquiries shall be made easily accessible to the public.
Article 4.17. Publication
1. Each Party shall promptly publish or otherwise make available, including through electronic means, the following information in a non-discriminatory and easily accessible manner, in order to enable interested parties to become acquainted with them:
(a) importation, exportation, and transit procedures (including port, airport, and other entry-point procedures) and required forms and documents;
(b) applied rates of duties and taxes of any kind imposed on or in connection with importation or exportation;
(c) rules for the classification or the valuation of products for customs purposes;
(d) import, export, or transit restrictions or prohibitions;
(e) fees and charges imposed on or in connection with importation, exportation, or transit;
(f) penalty provisions against breaches of import, export, or transit formalities; and
(g) appeal procedures.
2. The information in paragraph 1 shall, to the extent practicable, be made available on the internet in the English language.
3. The Parties shall designate or maintain one or more enquiry or information points to address enquiries by interested persons concerning customs and trade facilitation matters. Such enquiries shall be addressed in the English language.
Article 4.18. Customs Cooperation
1. The Parties shall enhance their cooperation in customs and customs related. matters. In order to enhance cooperation on customs matters, the Parties shall, to the extent possible, inter alia:
(a) exchange information concerning their respective customs legislation, its implementation, and customs procedures, particularly in the following areas:
(i) simplification and modernisation of customs procedures;
(ii) border enforcement of intellectual property rights by the customs authorities;
(iii) transit movements and transshipment; and
(iv) relations with the business community;
(b) uphold their commitment to the facilitation of the legitimate movement of goods, and to the improvement of customs techniques and procedures in accordance with the provisions of this Agreement;
(c) consider developing joint initiatives relating to import, export, and other customs procedures towards ensuring an effective service to the business community;
(d) work together on customs-related aspects of securing and facilitating the international trade supply chain; and
(e) strengthen coordination in international organisations such as the WTO and the WCO.
Article 4.19. Post-Clearance Audit
1. With a view to expediting the release of goods, the Parties shall adopt or maintain post-clearance audits to ensure compliance with customs and other related laws and regulations.
2. Each Party shall select a person or a consignment for post-clearance audit in a risk-based manner, which may include appropriate selectivity criteria. The Parties shall conduct post-clearance audits in a transparent manner. Where conclusive results of a post-clearance audit have been achieved, the Party conducting the post-clearance audit shall, without delay, notify the person whose record was audited of the audit results, the person's rights and obligations, and the reasons for the audit results, wherever practicable.
3. Each Party shall, wherever practicable, use the result of post-clearance audit in applying risk management.
Article 4.20. Electronic Payment
Each Party shall adopt or maintain procedures allowing the option of electronic payment for duties, taxes, fees, and charges collected by the relevant customs authorities incurred upon importation and exportation.
Chapter 5. SANITARY AND PHYTOSANITARY MEASURES
Article 5.1. Objectives
The objectives of this Chapter are to:
(a) facilitate trade while protecting human, animal and plant life or health;
(b) enhance the implementation of the Sanitary and Phytosanitary Agreement under the World Trade Organization (hereinafter referred to as "SPS Agreement") with a view to minimize the negative effects of sanitary and phytosanitary (hereinafter referred to as "SPS") measures on trade between the Parties;
(c) encourage to use of the applicable harmonised SPS measures on the basis of International Standards, Guidelines, and Recommendations (herein after referred to as âISGRsâ) developed by the relevant international organisations.
(d) enhance mutual understanding of each Party's national laws, regulations, and procedures relating to the implementation of SPS measures; and
(e) strengthen cooperation and communication between the Parties, including solving SPS issues arising from the implementation of this Chapter.
Article 5.2. Scope
This Chapter shall apply to SPS measures that may, directly or indirectly, affect trade between the Parties.
Article 5.3. Definitions
1. For the purposes of this Chapter, the following definitions shall apply:
(a) the Definitions In Annex a of the SPS Agreement;
(b) Relevant definitions adopted under the auspices of the Codex Alimentarius Commission ("the CODEX"), the World Organization for Animal Health ("the WOAH") and the International Plant Protection Convention ("the IPPC");
(c) Competent Authorities mean those authorities within each Party recognised by the national government as responsible for developing and administering the SPS measures within that Party.
2. Further to paragraph 1, the definitions under the SPS Agreement shall prevail to the extent that there is an inconsistency between the definitions adopted under the auspices of the CODEX, the WOAH, the IPPC and the definitions under the SPS Agreement.
Article 5.4. General Provision
The Parties affirm their rights and obligations with respect to each other under the SPS Agreement.
Article 5.5. Harmonization
The Parties are encouraged to harmonize their SPS measures based on the ISGRs developed by the relevant international organisations.
Article 5.6. Equivalence
1. The Parties recognise the application of equivalence, set out in Article 4 of the SPS Agreement. The Parties further recognise that equivalence can be accepted for a specific measure or a group of measures, or on a systems-wide basis related to a certain product or categories of products.
2. In application of equivalence, the Parties shall follow the procedures for determining the equivalence of a sanitary or phytosanitary measure, developed by the WTO SPS Committee, the CODEX, the WOAH and the IPPC, including in any future work related to equivalence undertaken by these international organisations.
3. The importing Party shall recognise a sanitary or phytosanitary measure of the exporting Party as equivalent to its own, if the exporting Party objectively demonstrate to the importing Party that its measure achieves the importing Partyâs appropriate level of protection.
4. To facilitate a determination of equivalence, the importing Party, on request of the exporting Party, shall explain the rationale and objective of its sanitary or phytosanitary measures and clearly identify the risks the sanitary or phytosanitary measures are intended to address.
5. The exporting Party shall provide appropriate science-based and technical information to support its objective demonstration that its measure achieves the appropriate level of protection identified by the importing Party. For this purpose, reasonable access shall be given by the exporting Party, upon request, to the importing Party for inspection, testing, and other relevant procedures.
6. The importing Party shall determine the science-based and technical information provided by the exporting Party on its sanitary or phytosanitary measures with an aim of entering bilateral Mutual Recognition Agreements ("MRAs") on the equivalence of specified sanitary or phytosanitary measures.
7. The importing Party shall respond in a timely manner to any request from the exporting Party for consideration of the equivalence of its measures, normally within a six-month period of time, unless otherwise agreed.
8. When the importing Party has adopted a sanitary or phytosanitary measure on equivalence, it shall promptly communicate the decision in writing to the exporting Party.
9. The determination by an importing Party of a request for recognition of equivalence of its measures shall not be in itself a reason to disrupt or suspend ongoing imports from that Party of the product in question.
10. If an equivalence determination does not result in recognition by the importing Party, the importing Party shall provide the exporting Party with the rationale for its decision. The Party may refer the issue under the Article 5.13: Technical Consultation.
Article 5.7. Risk Analysis
1. The Parties recognise that risk analysis is an important tool for ensuring that their SPS measures are based on scientific evidence as provided for in Article 5 of the SPS Agreement, taking into account relevant decisions of the WTO SPS Committee and ISGRs.
2. The Parties shall endeavor to expedite the risk analysis process, by working together in determining principles and guidelines, in accordance with procedures, policies, resources and laws and regulations of the importing Party.
3. When conducting its risk analysis, each Party shall:
(a) consider risk management option(s) that are not more trade restrictive than required to achieve the level of protection that the Party determines to be appropriate; and
(b) select risk management options to achieve the sanitary or phytosanitary objective, taking into account technical and economic feasibility.
4. On request of the exporting Party, the importing Party shall inform the exporting Party of the progress of the risk analysis status.
5. If the importing Party adopts the determination of risk analysis that allows trade to commence or resume, the importing Party shall implement the measure within a reasonable period of time.
6. If a determination does not result in the recognition of risk analysis, the importing Party shall provide the exporting Party with the rationale for its decision.
Article 5.8. Adaptation to Regional Conditions, Including Pest-or Disease- Free Areas and Areas of Low Pest or Disease Prevalence
1. The Parties recognise the principles of regionalisation and _ its implementation as provided for in Article 6 of the SPS Agreement in the light of relevant decisions of the WTO SPS Committee and ISGRs.
2. When the importing Party receives a request for a determination of regional conditions from the exporting Party and determines that the information provided by the exporting Party is sufficient, it shall initiate an evaluation within a reasonable period of time.
3. On request of the exporting Party, the importing Party shall inform the exporting Party of the status of evaluation for a determination of regional conditions.
4. When the importing Party adopts a measure that recognises regional conditions of the exporting Party, the importing Party shall communicate to the exporting Party in writing and implement such measure within a reasonable period of time. Any arrangement of the recognition of regional conditions which is concluded between the Parties shall be recorded by the competent authorities of the Parties.
5. If the evaluation of the evidence provided by the exporting Party does not result in a determination of regional conditions, the importing Party shall provide the exporting Party with the rationale for its determination.
Article 5.9. Transparency
1. The Parties shall undertake cooperation as per transparency requirements set out in Annex B of the SPS Agreement, and strengthen the cooperation between Contact Points of the Parties as laid out in Article 5.16 (Competent Authorities and Contact Points).
2. The Parties, through the Competent Authorities or Contact Points established under Article 5.16 (Competent Authorities and Contact Points), shall notify proposed measures or changes to existing SPS measures that may have an effect on the trade of the other Party on a consistent and systematic basis.
3. In addition, the Party, upon request from the other Party shall provide information or clarification regarding the proposed measures within a reasonable period of time.