2. This Article does not require a Party to publish, or otherwise make available, law enforcement procedures and internal operational guidelines including those related to conducting risk assessment.
Article 4.21. Definitions
For the purposes of this Chapter:
customs administration means the authority that is responsible under the law of a Party for the administration and application of its customs laws and regulations;
determination of origin means a determination as to whether a good qualifies as an originating good in accordance with Chapter Three (Rules of Origin);
exporter means an exporter located in the territory of a Party and an exporter required under this Chapter to maintain records in the territory of that Party regarding exportations of a good;
express shipments means shipments falling under the WCO Guidelines for the Immediate Release of Consignments by Customs;
identical goods means goods that are the same in all respects, including physical characteristics, quality, and reputation, irrespective of minor differences in appearance that are not relevant to a determination of origin of those goods under Chapter Three (Rules of Origin);
importer means an importer located in the territory of a Party and an importer required under this Chapter to maintain records in the territory of that Party regarding importations of a good;
indirect material has the same meaning as "indirect material" in Article 3.14 (Indirect Materials);
material means "material" as defined in Article 3.20 (Definitions);
net cost of a good means "net cost of a good" as defined in Article 3.20 (Definitions);
preferential tariff treatment means the duty rate applicable to an originating good;
producer means "producer" as defined in Article 3.20 (Definitions);
production means "production" as defined in Article 3.20 (Definitions);
transaction value or ex-works price of the good means "transaction value or ex-works price of the good" as defined in Article 3.20 (Definitions);
Uniform Regulations means "Uniform Regulations" established under Article 4.12; and value means value of a good or material for the purposes of calculating customs duties or for the purposes of applying Chapter Three (Rules of Origin).
Chapter Five. Sanitary and Phytosanitary Measures
Article 5.1. Objectives
The objectives of this Chapter are to minimise the negative effects of sanitary and phytosanitary measures on trade while protecting human, animal and plant life or health in the territory of each Party and enhance the implementation of the SPS Agreement.
Article 5.2. Scope
This Chapter applies to all sanitary and phytosanitary measures that may, directly or indirectly, affect trade between the Parties.
Article 5.3. Rights and Obligations of the Parties
The Parties affirm their rights and obligations under the SPS Agreement.
Article 5.4. Dispute Settlement
This Chapter is not subject to Chapter Twenty-One (Dispute Settlement).
Article 5.5. Committee on Sanitary and Phytosanitary Measures
1. The Parties hereby establish a Committee on Sanitary and Phytosanitary Measures, composed of representatives of each Party who are responsible for sanitary and phytosanitary matters.
2. Upon entry into force of this Agreement, each Party shall designate a contact point to coordinate the Committee meetings.
3. The objectives of the Committee are to enhance each Party's implementation of the SPS Agreement while respecting each other's rights to adopt measures to protect human, animal or plant life or health, enhance cooperation and consultation on sanitary and phytosanitary matters, and minimise negative effects on trade between the Parties.
4. Each Party shall ensure the participation, as appropriate, of representatives with responsibility for the development, implementation, and enforcement of sanitary and phytosanitary measures from its relevant government authorities in the Committee meetings.
5. Recognising that the management of sanitary and phytosanitary matters must rely on science and risk-based assessment and is best achieved through bilateral cooperation and consultation, the Committee shall seek to enhance present or future relationships between the Parties' agencies with responsibility for sanitary and phytosanitary matters. For these purposes, the Committee shall:
(a) recognise that scientific risk analysis shall be conducted and evaluated by the relevant regulatory agencies of each Party;
(b) enhance mutual understanding of each Party's sanitary and phytosanitary measures, including through the exchange of information relating to each other's measures and the regulatory processes related to those measures;
(c) consult on matters related to the development or application of sanitary and phytosanitary measures that affect, or may affect, trade between the Parties;
(d) promote bilateral consultations on sanitary and phytosanitary issues under discussion in multilateral and international fora, such as the WTO Committee on Sanitary and Phytosanitary Measures, the Codex Alimentarius Commission, the International Plant Protection Convention, and the World Organisation for Animal Health;
(e) encourage and coordinate the design, implementation, and review of technical and institutional cooperation programs; and
(f) review progress on addressing sanitary and phytosanitary matters that may arise between the Parties.
6. Unless the Parties otherwise agree, the Committee shall meet no later than one year following the entry into force of this Agreement. The Committee shall establish its rules of procedure at its initial meeting. Thereafter, the Committee shall meet once a year, unless the Parties otherwise agree.
Chapter Six. Standards-related Measures
Article 6.1. Scope and Coverage
1. Except as provided in paragraph 2, this Chapter applies to all standards-related measures that may affect trade in goods between the Parties.
2. This Chapter does not apply to:
(a) purchasing specifications prepared by government bodies for production or consumption requirements of such bodies; and
(b) sanitary and phytosanitary measures as defined in Annex A of the SPS Agreement.
Article 6.2. Extent of Obligations
1. Article 1.4 (Extent of Obligations) does not apply to this Chapter. This Chapter applies only to national governments unless otherwise specified.
2. Each Party shall provide information to sub-national 1 and local governments and authorities to encourage their adherence to this Chapter, as appropriate. For the purposes of this Chapter, sub-national government does not include local government.
Article 6.3. Affirmation of the WTO Agreement on Technical Barriers to Trade and other International Agreements
Further to Article 1.2 (Relation to Other Agreements):
(a) the Parties affirm with respect to each other their existing rights and obligations related to standards-related measures under the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement (hereinafter referred to as the "TBT Agreement") and all other international agreements to which both Parties are party.
(b) Articles 2 through 9 and Annexes 1 and 3 of the TBT Agreement are incorporated into and made part of this Agreement, mutatis mutandis.
Article 6.4. Cooperation
1. The Parties shall strengthen their cooperation in the field of standards-related measures with a view to increasing the mutual understanding of their respective systems and facilitating access to their respective markets.
2. The Parties shall mutually identify trade facilitating bilateral initiatives regarding standards-related measures that are appropriate for particular issues or sectors, taking into consideration the respective Parties' experience in other regional and multilateral agreements or arrangements of which both Parties are party or member.
3. Further to paragraphs 1 and 2, the Parties shall cooperate, in particular, by:
(a) encouraging their standardising bodies to cooperate with the standardising bodies in the territory of the other Party in their participation, as appropriate, in standardising activities, such as through membership in both regional and international standardising bodies;
(b) encouraging their conformity assessment bodies other than the governments of the Parties to participate in the cooperation with the conformity assessment bodies in the territory of the other Party to promote the mutual acceptance of conformity assessment results;
(c) promoting the accreditation of conformity assessment bodies on the basis of relevant international standards and guides; and
(d) promoting the acceptance of results of conformity assessment bodies that have been recognised under a relevant multilateral agreement or arrangement between their respective accreditation systems or bodies.
4. If a Party declines a request from the other Party to engage in negotiations on an agreement for facilitating recognition in its territory of the results of conformity assessment procedures conducted by bodies in the other Party's territory, it shall explain, at the request of the other Party, the reasons for its decision.
5. In accordance with Articles 2.4 and 5.4 of the TBT Agreement, as incorporated into this Agreement, each Party shall use relevant international standards as a basis for its technical regulations and conformity assessment procedures.
6. The Parties shall, within the context of this Article, expeditiously broaden the exchange of information and give favourable consideration to any written request for discussion.
Article 6.5. Cooperation In Sector-specific Initiatives
1. Each Party shall take all appropriate measures as may be available to it to ensure that sub-national and local governments comply with this Article, as appropriate.
2. The Parties shall cooperate in sector-specific initiatives, including by:
(a) recognising the importance of standards-related measures in the area of medical devices, sharing information on, and promoting the use of, internationally accepted approaches;
(b) reducing possibly redundant testing and certification requirements for pharmaceutical products and medical devices by promoting the use of internationally accepted standards, including those related to Good Manufacturing Practices (GMP) and Good Laboratory Practices (GLP);
(c) taking steps to implement Phase II of the APEC Mutual Recognition Arrangement for Conformity Assessment of Telecommunications Equipment (1998) with respect to the other Party as soon as possible. No later than one year after the date this Agreement enters into force, Korea will publish notice of the changes in its legislation that it proposes to make to implement Phase II;
(d) promoting the harmonisation and use of international standards such as standards developed in the International Electrotechnical Commission (IEC) in the area of low voltage devices; encouraging their national certification bodies to be members of the IEC System of Conformity Assessment Schemes for Electrotechnical Equipment and Components-Certification Bodies' Scheme (IECEE-CB Scheme) and to accept each other's IECEE-CB test certificate as the basis for national certification to relevant electric safety requirements in order to reduce duplicative testing and certification requirements;
(e) pursuant to the framework established by the International Laboratory Accreditation Cooperation (ILAC) and the Asia Pacific Laboratory Accreditation Cooperation (APLAC) Mutual Recognition Arrangement (MRAs), promoting the acceptance of test reports for wood building products and related assemblies issued by organisations accredited by the Standards Council of Canada (SCC) and Korean Laboratory Accreditation Scheme (KOLAS);
(f) encouraging cooperation between the National Research Council Institute for Research in Construction (NRC-IRC) and the Korea Institute of Construction Technology (KICT), or their respective successors, to build confidence in their respective research results and test data for wood building products and related assemblies. To facilitate confidence building, the Parties shall encourage the NRC-IRC and the KICT to negotiate a cooperation arrangement; and
(g) establishing, at the request of either Party, a technical ad hoc working group on standards-related measures related to building products and related assemblies that would be composed of relevant officials responsible for standards-related measures in the building products sector.
Article 6.6. Transparency
1. When a Party notifies WTO Members of a proposed technical regulation or conformity assessment procedure under the TBT Agreement, it shall transmit electronically, at the same time, the proposed technical regulation or conformity assessment procedure to the other Party.
2. On request, each Party shall promptly provide the other Party with the regulatory impact analysis statement for the technical regulation that the Party has adopted or is proposing to adopt, provided that it is publicly available.
3. Each Party shall ensure that transparency procedures regarding the development of technical regulations and conformity assessment procedures allow interested parties to participate at an early appropriate stage, when amendments can still be introduced and comments taken into account, except if urgent problems of safety, health, environmental protection, or national security arise or threaten to arise. If consultations respecting the development of technical regulations and conformity assessment procedures are open to the public, each Party shall permit persons of the other Party to participate on terms no less favourable than those accorded to its own persons.
4. Each Party shall recommend that non-governmental bodies in its territory observe paragraph 3 in the consultation process for the development of standards and voluntary conformity assessment procedures.
5. Each Party shall allow a period of at least 60 days for the public and the other Party to provide written comments on proposed standards-related measures, except if urgent problems of safety, health, environmental protection, or national security arise or threaten to arise.
6. For the purposes of paragraphs 1, 2 and 5, a Party may transmit its proposed technical regulations and conformity assessment procedures, their impact analysis statements for the technical regulation, and comments on proposed standards-related measures of the other Party to the enquiry point of the other Party established under Article 10 of the TBT Agreement.
7. When appropriate, each Party shall publish or otherwise make available to the public, in print or electronically, its responses, or a summary of its responses, to significant comments it receives no later than the date it publishes the final technical regulation or conformity assessment procedure.
Article 6.7. Automotive Standards-related Measures
1. A Party shall allow on its market automotive goods originating in the other Party pursuant to the provisions of this Article. Safety Standards Incorporation or Equivalence
2. Korea shall accept as complying with the corresponding Korea Motor Vehicle Safety Standards (hereinafter referred to as "KMVSS" (2)), as amended, automotive goods originating in Canada that comply with:
(a) the United States Federal Motor Vehicle Safety Standards (hereinafter referred to as "FMVSS") and other standards or regulations listed in Annex 6-A; or
(b) the UN regulations 3 and other standards or regulations listed in Appendix 2-C-3 Table 1 of the Free Trade Agreement between the Republic of Korea, of the One Part, and the European Union and its Member States, of the Other Part in accordance with the terms of that Agreement, as amended. (4)
If Korea incorporates any additional FMVSS, UN regulations, or other standards or regulations into its domestic law or otherwise accepts any such additional standards or regulations as equivalent to KMVSS, it shall also accept as complying with the corresponding KMVSS automotive goods of Canada that comply with these standards or regulations, as they are incorporated into, including any adaptations, or deemed equivalent to, its domestic law.
3. Canada shall accept as complying with the corresponding Canadian Motor Vehicle Safety Standards (hereinafter referred to as "CMVSS" (5)), as amended, automotive goods originating in Korea that comply with:
(a) the FMVSS and other standards or regulations listed in Annex 6-B (Table 1), as incorporated into the corresponding CMVSS, including any adaptations provided for in CMVSS; or
(b) the UN regulations listed in Annex 6-B (Table 2), as incorporated into the corresponding CMVSS, including any adaptations provided for in CMVSS.
If Canada incorporates any additional FMVSS, UN regulations, or other standards or regulations into its domestic law or otherwise accepts any such additional standards or regulations as equivalent to CMVSS, it shall also accept as complying with the corresponding CMVSS automotive goods of Korea that comply with these standards or regulations, as they are incorporated into, including any adaptations, or deemed equivalent to, its domestic law.
4. Notwithstanding compliance with the standards or regulations referred to in paragraphs 2 and 3, each Party may:
(a) require that automotive goods be certified and marked as complying with its relevant domestic law;
(b) verify by random sampling in accordance with its domestic law that the automotive good, including an automotive good self-certified by a manufacturer, complies as appropriate with:
(i) an applicable standard or regulation of the Party; or
(ii) an applicable standard or regulation, as set out in paragraphs 2 and 3.
Each Party may require the supplier to withdraw the automotive good from the market in case the good concerned does not comply with the applicable standard or regulation as the case may be;
(c) in exceptional circumstances, require a supplier to withdraw an automotive good from its market if there are urgent and compelling risks for road safety, public health, or the environment based on substantiated scientific or technical information. Such a temporary emergency measure shall not constitute a means of arbitrary or unjustifiable discrimination against the good of the other Party or a disguised restriction on trade. Before it is implemented, any such measure shall be notified to the other Party and to the supplier with an objective, reasoned, and sufficiently detailed explanation of the motivation for the measure; and
(d) modify its domestic law, including by amending or revising any standard or the manner in which or the extent to which a standard is incorporated into, or deemed equivalent to, its domestic law. Each Party shall maintain the incorporation of the standards or regulations covered by paragraphs 2 and 3 into its domestic law or continue to otherwise accept those standards or regulations as equivalent to its domestic law, unless doing so would provide for a lower level of safety than the level of safety that would be achieved by a modification to its domestic law or, for Canada, would compromise North American integration.
5. If a Party modifies its domestic law pursuant to paragraph 4(d), the Party shall notify the other Party of the modification. Without prejudice to paragraph 4(d), if such modification renders inappropriate the continued incorporation into, or otherwise acceptance as equivalent to, its domestic law of the standards and regulations covered by paragraphs 2 and 3, the Parties may decide to amend accordingly the relevant provisions of this Agreement upon consideration by the Commission.
6. Each Party shall promptly communicate to the concerned manufacturer or importer a decision taken on compliance testing if the manufacturer or importer is deemed by competent national authorities not to be in compliance with relevant laws or regulations, as well as the basis for any such decision and information on available legal remedies.
7. The Parties agree to use relevant Global Technical Regulations, or other guides or recommendations issued by international standardising bodies (hereinafter collectively referred to as "guides or recommendations"), or relevant parts of them, if they exist, as a basis for compliance testing procedures on automotive goods, except if such guides or recommendations are inappropriate for the Party concerned for reasons covered by Article 5.4 of the TBT Agreement and duly explained upon request of the other Party 6 . If a Party proposes to apply a compliance testing procedure that is not based on relevant guides or recommendations, it shall publish in advance the procedure it proposes to adopt, and provide interested persons a reasonable opportunity to comment. Compliance Testing New Technologies
8. A Party shall not prevent or unduly delay the placing on its market of an automotive good on the ground that the good incorporates a new technology or a new feature which has not yet been regulated unless the Party demonstrates at the request of the other Party, based on scientific or technical information, that this new technology or new feature creates a risk for human health, safety, or the environment.
9. If a Party decides to refuse the placing on its market or require the withdrawal from its market of an automotive good on the ground that the good incorporates a new technology or a new feature creating a risk for human health, safety, or the environment, the Party shall immediately notify the other Party and the importer of the good of its decision. The notification shall include all relevant scientific or technical information.
10. The Parties shall endeavour to promote cooperation on automotive goods issues under discussion in the World Forum for Harmonization of Vehicle Regulation (WP.29) within the framework of the United Nations Economic Commission for Europe (UNECE), or its successor.
Article 6.8. Committee on Standards-related Measures
1. The Parties hereby establish a Committee on Standards-Related Measures, composed of trade and relevant regulatory officials, as set out in Annex 6-C.
2. The functions of the Committee include:
(a) monitoring and facilitating the implementation of this Chapter;
(b) promptly addressing any issues that a Party raises related to the development, adoption, application, or enforcement of standards-related measures;
(c) enhancing cooperation in the development and improvement of standards-related measures and Good Regulatory Practices;
(d) exchanging information on standards-related measures in response to all reasonable requests for such information from a Party;
(e) exchanging information on developments in non-governmental, regional, and multilateral fora for standards-related measures;
(f) reviewing the provisions of this Chapter in light of any developments under the TBT Agreement and, if required, developing recommendations to the Parties for amendments to these provisions in light of such developments;
(g) taking any steps the Parties consider will assist them in implementing the provisions of this Chapter;
(h) as it considers appropriate, reporting to the Commission on the implementation of the provisions of this Chapter;
(i) as it considers appropriate, establishing working groups that may include or consult with non-governmental experts and stakeholders as mutually agreed by the Parties; and
(j) at the request of a Party, consulting on any matters arising under this Chapter.
3. The Committee shall meet at least once a year unless the Parties otherwise agree.
Article 6.9. Definitions
For the purposes of this Chapter:
automotive good means all forms of motor vehicles, systems, and parts thereof falling under Chapters 40, 84, 85, 87, and 94 of the Harmonized System (HS), except the following goods:
(a) tractors (in HS 8701.10, 8701.20, 8709.11, 8709.19, and 8709.90);
(b) snow mobiles and golf carts (in HS 8703.10); and (c) construction machinery (in HS 8413.40, 8425.11, 8425.19, 8425.31, 8425.39, 8425.41, 8425.42, 8425.49, 8426.11, 8426.12, 8426.19, 8426.20, 8426.30, 8426.41, 8426.49, 8426.91, 8426.99, 8427.20, 8428.10, 8428.20, 8428.31, 8428.32, 8428.33, 8428.39, 8428.40, 8428.60, 8428.90, 8429.11, 8429.19, 8429.20, 8429.30, 8429.40, 8429.51, 8429.52, 8429.59, 8430.10, 8430.20, 8430.31, 8430.39, 8430.41, 8430.49, 8430.50, 8430.61, 8430.69, 8431.10, 8431.31, 8431.39, 8431.41, 8431.42, 8431.43, 8431.49, 8474.10, 8474.20, 8474.31, 8474.32, 8474.39, 8474.80, 8474.90, 8479.10, 8701.30, 8704.10, 8705.10, 8705.20, 8705.40, and 8705.90);
Good Regulatory Practices means Good Regulatory Practices as defined by the OECD Guiding Principles for Regulatory Performance (2005); and
standards-related measures means standards, technical regulations, and conformity assessment procedures as defined by the TBT Agreement.
Chapter Seven. Trade Remedies
Section A. Safeguard Measures
Article 7.1. Article XIX of the Gatt 1994 and the Safeguards Agreement
1. Each Party retains its rights and obligations under Article XIX of the GATT 1994, the Safeguards Agreement, and any successor agreements. This Agreement does not confer additional rights or obligations on the Parties with regard to measures taken pursuant to Article XIX of the 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 from such measure if those imports are not a substantial cause of serious injury or threat thereof.
2. A Party shall not apply or maintain, with respect to the same good, at the same time:
(a) a bilateral safeguard measure; and
(b) a measure pursuant to Article XIX of the GATT 1994 and the Safeguards Agreement.
Article 7.2. Bilateral Safeguard Measures
1. Subject to paragraph 2, if a good originating in the territory of a Party, as a result of the reduction or elimination of a customs duty provided for under this Agreement, is being imported into the territory of the other Party in such increased quantities and under such conditions that the imports of the good from that Party alone constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party into whose territory the good is being imported may, to the minimum extent necessary to remedy or prevent the injury:
(a) suspend the further reduction of a rate of customs duty provided for under this Agreement on the good;
(b) increase the rate of customs duty on the good to a level not to exceed the lesser of:
(i) the most-favoured-nation (MFN) applied rate of customs duty in effect at the time the safeguard measure is taken; and
(ii) the MFN applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement; or
(c) in the case of a customs duty applied to a good on a seasonal basis, increase the rate of customs duty to a level that, for each season, does not exceed the lesser of:
(i) the MFN applied rate of customs duty on the good in effect for the corresponding season immediately preceding the date of application of the safeguard measure; and
(ii) the MFN applied rate of customs duty on the good in effect for the corresponding season immediately preceding the date of entry into force of this Agreement.
2. The following conditions and limitations apply to a proceeding that may result in the application of a safeguard measure pursuant to paragraph 1:
(a) A Party shall, without delay, deliver to the other Party written notice of, and a request for consultations regarding, the initiation of a proceeding that could result in the application of a safeguard measure against a good originating in the territory of the other Party;
(b) Each Party shall ensure that its competent investigating authority completes any such investigation within one year of the date of initiation of the proceeding. A Party shall apply any such safeguard measure no later than one year after the date of initiation of the proceeding, unless the Parties agree otherwise;