7. For purpose of paragraph 5:
distributor means a person of a Party who is responsible for the distribution, agency, concession, or representation in the territory of that Party of goods of the other Party.
Article 2.14. ANTIDUMPING DUTIES
Nothing in this agreement affects the rights and obligations of the Parties under Article VI of GATT 1994, the Agreement on Implementation of Article VI of the General Agreement of Tariffs and Trade 1994 with regard to the application of antidumping duties or any amendments or provisions that supplement or replace them.
Article 2.15. SUBSIDIES AND COUNTERVAILING MEASURES
1. Each Party maintains its rights and obligations under the WTO Agreement on Subsidies and Countervailing Measures.
2. Consistent with their rights and obligations under the WTO Agreement, neither Party shall introduce or maintain any export subsidy on any agricultural product destined for the territory of the other Party.
3. The Parties share the objective of the multilateral elimination of export subsidies on agricultural products and shall work towards an agreement in the WTO to eliminate those subsidies and prevent the introduction in any form of any new export subsidies on agricultural products.
Article 2.16. RESTRICTIONS TO SAFEGUARD THE BALANCE OF PAYMENTS
1. The Parties shall endeavour to avoid the imposition of restrictive measures for balance-of-payments purposes.
2. Any such measure taken for trade in goods must be in accordance with Article XII of the GATT 1994 and the Understanding on the Balance-of-Payments Provisions of the GATT 1994, which shall be incorporated into and made a part of this Agreement.
Article 2.17. PROTECTION OF GEOGRAPHICAL INDICATIONS
1. The Parties affirm that their obligations in the Agreement on Trade Related Aspects of Intellectual Property Rights ("TRIPS Agreement") will be applicable to the geographical indications under paragraphs 2 and 3 below.
2. The geographical indications "Pisco", "Maiz Blanco Gigante Cusco"and "Chulucanas" are recognized as geographical indications for spirits and products, respectively, in Peru, within the meaning of paragraph 1 of Article 22 of the TRIPS Agreement. Subject to Singapore's domestic laws (2-2), in a manner that is consistent with the TRIPS Agreement, such terms will be protected as geographical indications in Singapore.
3. The Parties may by mutual consent accord similar recognition and protection as under paragraph 2 above to other geographical indications of the Parties.
Article 2.18. DISTINCTIVE PRODUCTS
The Parties shall endeavour to consider the recognition of distinctive products (2-3) after one year following the entry into force of this Agreement.
Chapter 3. SPECIAL AGRICULTURAL MEASURE
Article 3.1. SCOPE OF APPLICATION
A Party may apply, in exceptional circumstances and subject to the criteria provided in Annex 3A (Criteria for the Application of Special Agricultural Measure), additional duty (hereinafter referred to as "a special agricultural measure") to a product listed in Annex 3B (List of Products Subject to Special Agricultural Measure) for which the Party has commenced custom duties elimination in accordance with Article 2.4 (Elimination of Customs Duties) of this Agreement.
Article 3.2. CONDITIONS
1. The special agricultural measure applied in accordance with this Chapter shall result in the increase of the tariff rate, but shall not exceed the base tariff rate provided in Annex 2A (Peru Tariff Schedule) or Annex 2B (Singapore Tariff Schedule), as relevant for the good.
2. The special agricultural measure may be applied by a Party as long this Agreement is in force.
3. The special agricultural measure referred to in paragraph 1 shall be applied in accordance with this Chapter and based on the criteria established in Annex 3A (Criteria for the Application of Special Agricultural Measure).
Article 3.3. APPLICATION OF SPECIAL AGRICULTURAL MEASURE
Per Volume Criteria
1. A Party may impose a special agricultural measure on an agricultural good, in accordance with the per volume criteria under Annex 3A (Criteria for the Application of Special Agricultural Measure), if the volume of such imported good including the volume of the corresponding shipment during the last twelve (12) calendar months exceeds fifteen per cent (15%) of the intervention volume of the mentioned good.
2. The intervention volume will be determined every year on the basis of the annual average of imports of a determined good originating in the exporting Party registered in the thirty-six (36) calendar months prior to the effective year of the intervention volume. Each Party shall send a notice to the other of such volume during the first twenty (20) days of January, and such notice shall be effective for the period ofa year.
Per Price Criteria
3. A Party may impose a special agricultural measure on an agricultural good, in accordance with the per price criteria under Annex 3A (Criteria for the Application of Special Agricultural Measure), if, upon entry of the good into a customs territory, the unitary import price of the corresponding shipment of the good is no less than fifteen per cent (15%) below the intervention price of such good.
4. For goods entering Peru, the unit import price (3-1) will be determined in accordance with the CIF import price, expressed in US Dollars.
5. The intervention price of a good shall be determined every year on the basis of the average CIF import unit price expressed in US Dollars, corresponding to the last thirty-six (36) calendar months prior to the effective year of the intervention price. Each Party shall send a notice to the other Party on these prices during the first twenty (20) days of January, such notice shall be effective for the period of year.
Disqualification
6. A Party shall not apply a special agricultural measure if:
(a) there is no import registered by the Party during the period of twenty-four (24) months prior to the last twelve (12) months; or
(b) the imports of such good from the exporting Party do not exceed fifteen per cent (15%) of the total imported by the importing Party of such good in the period of twenty-four (24) months prior to the last twelve (12) months.
Article 3.4. NOTICE AND CONSULTATIONS
1. When a Party applies a special agricultural measure under this Chapter, the Party shall give notice of such measure to the other Party not more than ten (10) days after the date on which the measure was adopted. The notice shall provide the background information of the special agricultural measure. Upon request of the other Party to the Party applying the measure, the Parties shall establish consultations regarding the application of the special agricultural measure.
2. A Party may not impose or maintain, simultaneously, in regard to the same good, a special agricultural measure under this Chapter and:
(a) a safeguard measure under Chapter 8 (Bilateral Safeguards) of this Agreement; or
(b) a safeguard measure under Article XIX of GATT 1994 and the WTO Agreement on Safeguards.
Chapter 4. RULES OF ORIGIN
Article 4.1. DEFINITIONS
For the purposes of this Chapter:
1. 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 regular stocking, feeding, protection from predators, etc.;
2. Chapters, Headings and Subheadings refers to the two first digits in the case of chapters, four digits in the case of headings and six digits in the case of subheadings, used in the classification of the Harmonized System;
3. exporter means a natural or juridical person located in the territory ofa Party from which the good is exported;
4. fungible goods or materials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical;
5. generally accepted accounting principles means the recognized 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, and may encompass broad guidelines for general application, as well as detailed standards, practices, and procedures;
6. good means any merchandise, product, article, or material;
7. importer means a natural or juridical person located in the territory ofa Party into which the good is imported;
8. indirect material means a good used in the production, testing, or inspection of a good but not physically incorporated into the good, or a good 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, safety, equipment, and supplies;
(f) equipment, devices, and supplies used for testing or inspecting the good;
(g) catalysts and solvents; and
(h) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production;
9. material means a material used in the production of another good, including any parts or ingredients;
10. non-originating good or non-originating material means a good or material that does not qualify as originating under the provisions of this Chapter;
11. packing material and container for shipment means goods used to transport a good or to protect a good during its transportation, save for the packaging materials and containers in which a good is packaged for retail sale;
12. producer means a person who engages in the production of a good in the territory ofa Party;
13. production means growing, harvesting, extracting, mining, raising, capturing, fishing, trapping, hunting, manufacturing, remanufacturing of goods listed in Annex 4B(Remanufactured Goods), processing or assembling a good;
14. recovered goods means materials in the form of individual parts that result from:
(a) the complete disassembly of used goods into individual parts; and
(b) the cleaning, inspecting, or testing, and as necessary for improvement to sound working condition one or more of the following processes: welding, flame spraying, surface machining, knurling, plating, sleeving, and rewinding in order for such parts to be assembled with other parts, including other recovered parts in the production of a remanufactured good;
15. remanufactured good means an industrial good listed within Annex 4B (Remanufactured Goods) that, assembled in the territory of a Party:
(a) is entirely or partially comprised of recovered goods;
(b) has the same life expectancy and meets the same performance standards as a new good; and
(c) enjoys the same factory warranty as such a new good;
16. simple mixing means, generally, an activity, including the dilution in water or another substance that does not substantially alter the characteristics of the product, that does not require abilities or special machines, apparatuses or equipment specially produced or installed to implement such activity (4-1);
17. used means utilized or consumed in the production of goods; and
18. WTO Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade.
Article 4.2. ORIGINATING GOODS
1. Except as otherwise provided in this Chapter, for the purposes of this Agreement, a good shall be deemed originating and eligible for preferential treatment if it conforms to the origin requirement under any of the following conditions:
(a) the good is wholly obtained or produced entirely in the territory of one or both Parties; or
(b) the good is produced entirely in the territory of one or both parties, exclusively from materials whose origin conforms to the provisions of this Chapter; or
(c) the good is produced entirely in the territory of one or both Parties, using non-originating materials that conform to a change in tariff classification, a qualifying value content, or other requirements specified in Annex 4A (Product Specific Rules).
2. In addition to a paragraph 1, the good shall meet the other applicable requirement under this Chapter.
Article 4.3. MINIMAL OPERATIONS
1. Notwithstanding any provision in this Chapter, a good shall not be considered to have satisfied the requirements for an originating good under merely by reason of going through any or all of the following operations:
(a) operations to ensure the conservation or preservation of goods in good condition during transport and storage, such as ventilation, cooling, freezing, extraction of damaged parts, drying or addition of substances;
(b) sifting, peeling, classifying, selecting, washing, filtering, cutting, shelling, marinating drying;
(c) cleaning, including the removal of dust, oxide, oil, paint or other coverings;
(d) packaging, repackaging, breaking up and putting the good for retail sale;
(e) affixing of marks, labels, trade marks or other distinguishing signs on goods;
(f) simple mixing, dilution in water or in another watery substance, ionized or saline;
(g) application of oil, salt, sugar or any sweetener;
(h) disassembly of goods into their constituent parts;
(i) slaughtering of animals;
(j) operations of painting and polishing;
(k) placing in bottles, cases, boxes and other packaging operations;
(l) simple assembly of parts or products to constitute a complete product unless it is for the production of a remanufactured good as listed in Annex 4B (Remanufactured Goods); or
(m) the combination of two or more of the operations listed at subparagraphs (a) to (l) above
Article 4.4. WHOLLY-OBTAINED OR PRODUCED GOODS
Goods wholly obtained or produced entirely in the territory of one or both Parties means:
(a) plants and plant products harvested or gathered in the territory of one or both Parties;
(b) live animals born and raised in the territory of one or both Party;
(c) goods obtained in the territory of one or both Parties from live animals;
(d) goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of one or both Parties;
(e) minerals and other non-living natural resources, not included in sub-paragraphs (a) to (d), extracted or taken from the territory of one or both Parties;
(f) goods obtained from sea fishing and other marine goods taken from outside the territory of a Party by a vessel registered, recorded or licensed with a Party, and entitled to fly its flag;
(g) goods produced and/or made on board a factory ship from products referred to in sub-paragraph (f), provided that such factory ship is registered, recorded or licensed with that Party, and entitled to fly its flag;
(h) goods taken by a Party, or a person of a Party, from the seabed or beneath the seabed outside its territory, provided that the Party has rights to exploit such seabed;
(i) waste and scrap derived from:
(i) production in the territory of that Party, which is only fit for the recovery of raw materials; or
(ii) used goods collected in the territory of that Party, provided such goods are fit only for the recovery of raw materials;
(j) recovered goods derived in the territory of a Party from used goods and utilized in the territory of that Party in the
(k) production of remanufactured goods; and
(l) goods produced in the territory of one or both Parties exclusively from goods referred to in sub-paragraphs (a) to (j), or from their derivatives, at any stage of production.
Article 4.5. QUALIFYING VALUE CONTENT
1. Where Annex 4A (Product Specific Rules) specifies a qualifying value content requirement, the following formula shall be applied:
QVC = FOB - VNM / FOB X 100
where
(a) QVC is the qualifying value content of the good, expressed as a percentage;
(b) FOB is the Free On Board value of the particular good determined in accordance with the WTO Customs Valuation Agreement; and
(c) VNM is the value of non-originating materials used by the producer in the production of the good, calculated in accordance with paragraph 2.
2. For the purpose of calculating the value of non-originating materials pursuant to sub-paragraph (c) above, the following formula shall be applied:
VNM = TVM - QVM where
(a) TVM is the total value of materials; and
(b) QVM is the qualifying value of materials, which shall be calculated as:
(i) the total value of the material if the material satisfies the product-specific rule established in Annex 4A (Product Specific Rules), and the material has undergone its last production or operation in the territory of either Party; or
(ii) the value of the material that can be attributed to one or both of the Parties if the material does not satisfy the product-specific rule established in Annex 4A (Product Specific Rules).
3. All costs considered for the calculation of qualifying value content shall be recorded and maintained in conformity with the generally accepted accounting principles applicable in the territory of the Party where the good is produced.
Article 4.6. VALUE OF MATERIALS
For the purposes of Article 4.5 (Qualifying Value Content), the value of a material shall be:
(a) for amaterial imported directly by the producer of the good, the CIF value of the material, in accordance with the WTO Customs Valuation Agreement;
(b) for a material acquired by the producer in the territory where the good is produced, the transaction value, or if this is not known and cannot be ascertained, the first ascertainable price paid for the material in the Party; or
(c) fora material that is self-produced, or where the relationship between the producer of the good and the seller of the material influences the price actually paid or payable for the material, including a material obtained without charge, the sum of:
(i) all expenses incurred in the production of the material, including general expenses; and
(ii) an amount for profit equivalent to the profit added in the normal course of trade.
Article 4.7. DE MINIMIS
1. Notwithstanding Article 4.2 (Originating Goods), a non-textile or apparel good shall be considered to be an originating good, where the value of all non-originating materials used in the production of the good, which do not undergo the applicable change in tariff classification set out in Annex 4A (Product Specific Rules), does not exceed ten percent (10%) of the F.O.B. value of the good.
2. Notwithstanding Article 4.2 (Originating Goods), a textile or apparel that is not an originating good because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo the applicable change in tariff classification set out in Annex 4A (Product Specific Rules), shall nonetheless be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than seven percent (7%) of the total weight of that component.
Article 4.8. ACCUMULATION
1. Originating materials 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 A good is an originating good where it is produced in the territory of one or both Parties by one or more producers, provided that the good satisfies the requirements in Article 4.2 (Originating Goods).
Article 4.9. ACCESSORIES, SPARE PARTS AND TOOLS
Each Party shall provide that accessories, spare parts, or tools delivered with a good that form part of the goodâs standard accessories, spare parts, or tools shall be treated as originating goods if the good is an originating good, and shall be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification, provided that:
(a) the accessories, spare parts, or tools are classified with and not invoiced separately from the good, regardless of whether they appear specified or separately identified in the invoice itself;
(b) the quantities and value of the accessories, spare parts, or tools are customary for the good; and
(c) if the good is subject to a qualifying value content requirement, the value of the accessories, spare parts, or tools shall be taken into account as originating or non- originating materials, as the case may be, in calculating the qualifying value content of the good.
Article 4.10. SETS AND ASSORTMENTS OF GOODS
1. Each Party shall provide that if goods are classified as a set pursuant to rule 3 of the General Rules of Interpretation of the Harmonized System, the set is originating only if