1. The importing Party shall grant preferential tariff treatment in accordance with this Agreement to an originating good of the exporting Party on the basis of a Proof of Origin submitted, when it is required, by the importer who claims preferential tariff treatment at the time of importation, in accordance with the procedures applicable in the importing Party.
2. Notwithstanding paragraph 1, the importing Party shall not require a Proof of Origin from importers for: (a) an importation of originating goods of the exporting Party whose aggregate customs value does not exceed US$ 1,500 or its equivalent amount in the Party's currency, or such higher amount as may be established by the importing Party, provided that the importation does not form part of importations that may reasonably be considered to have been made separately for the purpose of avoiding the requirement for a Proof of Origin; or
(b) an importation of an originating good of the exporting Party, for which the importing Party has waived the requirement for a Proof of Origin.
3. Where an originating good of the exporting Party is imported through one or more non-Parties, the importing Party may require importers who claim preferential tariff treatment for that good to submit:
(a) in the case of Japan:
(i) a copy of the through bill of lading; or
(ii) a certificate or any other information given by the customs authority of such non-Parties or other relevant entities, which evidences that the good has not undergone operations other than unloading, reloading and any other operation to preserve it in good condition in those non-Parties; and
(b) in the case of Peru:
(i) in the case of transit or transshipment: the transportation documents, such as the air waybill, the bill of lading, or the multimodal or combined transportation document, that certify the transport from the exporting Party to the importing Party, as the case may be; and
(ii) in the case of storage: the transportation documents, such as the air waybill, the bill of lading, or the multimodal or combined transportation document, that certify the transport from the exporting Party to the importing Party, as the case may be, as well as, the documents issued by the customs authority or other competent authority of the non-Party that authorized this operation, according to its domestic legislation.

Article 61. Obligations Related to Importations

1. Except as otherwise provided for in this Chapter, each Party shall require an importer that claims preferential tariff treatment for a good imported from the other Party to:
(a) make a written statement in the customs declaration, based on a valid Proof of Origin, that the good qualifies as an originating good of the exporting Party;
(b) have the Proof of Origin in its possession at the time the statement referred to in subparagraph (a) is made;
(c) have in its possession the documents referred to in paragraph 3 of Article 60, where applicable;
(d) submit the Proof of Origin, as well as the documents indicated in subparagraph (c) on the request of the customs authority; and
(e) promptly make a corrected declaration and pay any duties owing where the importer has reason to believe that a Proof of Origin on which a declaration was based contains information that is not correct.
2. Where an importer of an originating good at the time of importation does not have in his possession a Proof of Origin, the importer may, in accordance with the laws and regulations of the importing Party, apply for a refund of any excess customs duties paid or deposit imposed as a result of the goods not having been granted preferential tariff treatment, on presentation to the customs authority of the importing Party of the Proof of Origin issued or made out in accordance with Article 54 or Article 57 and, if required, such other documentation relating to the importation of the good, within a period not exceeding one year after the time of importation.

Note: Notwithstanding this paragraph, in the case of importation into Japan, refund of any excess duties paid shall not be applicable.
3. Paragraph 2 shall not be applicable in the case where the importer failed to declare to the customs authority of the importing Party, at the time of importation, that the good was an originating good under this Agreement, even though a valid Proof of Origin was provided to the customs authority subsequently.
4. Where an importer claims preferential tariff treatment for a good, the importing Party may deny preferential tariff treatment to the good where the good does not qualify as an originating good of the exporting Party or where the importer fails to comply with any of the relevant requirements of this Chapter.

Article 62. Validity of Proof of Origin

1. A Proof of Origin shall be valid for 12 months from the date on which it is issued or made out, and shall be submitted for a single importation covered under one or more customs declarations within such period, when it is required by the customs authority of the importing Party.
2. In the event that the good is temporarily admitted or stored under control of the customs authority of the importing Party, the validation period of the Proof of Origin may be extended by the amount of time the customs authority has authorized such operations.
3. Proofs of Origin which are submitted to the customs authority of the importing Party after the final date for submission specified in paragraph 1 may be accepted for the purpose of granting preferential tariff treatment, where the failure to submit these documents by the final date set is due to exceptional circumstances.

Article 63. Supporting Documents

The documents referred to in paragraph 5 of Article 54 and paragraph 4 of Article 57 used for the purposes of proving that the goods covered by a Proof of Origin qualify as originating goods of the exporting Party may consist of, inter alia, the following:
(a) direct evidence of the processes carried out by the exporter or producer to obtain the goods concerned; (b) documents proving the originating status of the materials used in a Party, where the documents are used in accordance with its laws and regulations;
(c) documents proving the working or processing of materials in a Party, where these documents are used in accordance with its laws and regulations; or
(d) Proofs of Origin stating the originating status of the materials used, issued or made out in a Party.

Article 64. Preservation of Documents and Records

1. The exporter to whom a Certificate of Origin was issued shall keep the documents referred to in paragraph 5 of Article 54 for at least five years after the date on which the Certificate of Origin was issued.
2. The competent authority of the exporting Party or its certification bodies issuing a Certificate of Origin shall keep a record of the Certificate of Origin, as well as the supporting information required for the certification, for at least five years after the date on which the Certificate of Origin was issued.
3. The approved exporter who has made out an origin declaration shall keep a copy of the origin declaration as well as the documents referred to in paragraph 4 of Article 57 for at least five years after the date on which the origin declaration was made out.
4. The producer of a good who provides a declaration referred to in subparagraphs 6(a) and 6(b) of Article 54 shall keep the records relating to the origin of the good for at least five years after the date on which the Certificate of Origin was issued or after the date on which the declaration referred to in subparagraph 6(a) of Article 54 was given by the producer to the exporter, except where the Certificate of Origin is not issued based on the declaration provided by the producer.
5. The producer of a good referred to in subparagraph 3(b) of Article 57 shall keep the records relating to the origin of the good for at least five years after the date on which the declaration referred to in subparagraph 3(b) of Article 57 was given by the producer to the approved exporter, except where the origin declaration is not made out based on the declaration provided by the producer.
6. The records to be kept in accordance with this Article may include electronic records.

Article 65. Minor Errors

The customs authority of the importing Party shall disregard minor errors, such as slight discrepancies or omissions, typing errors or protruding from the designated field, provided that these minor errors are not such as to create doubts concerning the accuracy of the information included in the Proof of Origin.

Article 66. Verifications Process

1. In order to ensure the proper application of this Chapter, the Parties shall assist each other to carry out verification of the information related to the Proof of Origin, in accordance with this Agreement and their respective laws and regulations.
2. For the purpose of determining whether a good imported from the other Party meets the requirements of this Chapter, the importing Party may conduct a verification through its relevant authority by means of:
(a) request of information relating to a Proof of Origin from the importer;
(b) request of information relating to a Proof of Origin from the competent authority of the exporting Party on the basis of the Proof of Origin;
(c) request of information relating to a Proof of Origin from the exporter, the approved exporter or the producer, keeping documents and records in accordance with Article 64 through the competent authority of the exporting Party; and
(d) request to the exporting Party to check the facilities used in the production of the good, through a visit by the competent authority of the exporting Party along with the relevant authority of the importing Party as an observer to the premises of the exporter, the approved exporter or the producer, keeping documents and records in accordance with Article 64 and to provide the collected information after the visit.
3. For the purposes of paragraph 2, the relevant authority of the importing Party shall return a copy of the Proof of Origin to the competent authority of the exporting Party giving the reasons for the request for the verification. Any documents or information obtained suggesting that the information given in the Proof of Origin is incorrect shall be forwarded to the competent authority of the exporting Party in support of such request.
4. (a) For the purposes of subparagraphs 2(b) and 2(c), the competent authority of the exporting Party shall provide the information requested in a period not exceeding three months after the date of receipt of the request.
(b) If the relevant authority of the importing Party considers necessary, it may require additional information relating to the Proof of Origin. If additional information is requested by the relevant authority of the importing Party, the competent authority of the exporting Party shall provide the information requested in a period not exceeding two months after the date of receipt of the request.
5. (a) When requesting the exporting Party to conduct a visit pursuant to subparagraph 2(d), the relevant authority of the importing Party shall deliver a written communication with such request to the exporting Party at least 30 days before the proposed date of the visit, the receipt of which is to be confirmed by the exporting Party.
(b) The communication referred to in subparagraph 5(a) shall include:
(i) the identity of the relevant authority of the importing Party issuing the communication;
(ii) the name of the exporter, the approved exporter or the producer, keeping documents and records in accordance with Article 64 in the exporting Party, whose premises are requested to be visited;
(iii) the proposed date and place of the visit;
(iv) the objective and scope of the proposed visit, including specific reference to the good subject of the verification referred to in the Proof of Origin; and
(v) the names and titles of the officials of the relevant authority of the importing Party to be present during the visit.
(c) The exporting Party shall respond in writing to the importing Party, within 30 days after the receipt of the communication referred to in subparagraph 5(a), if it accepts or refuses to conduct the visit requested pursuant to subparagraph 2(d). (d) The exporting Party shall provide within 60 days or any other mutually agreed period after the last day of the visit, to the relevant authority of the importing Party the information obtained pursuant to subparagraph 2(d).
6. The relevant authority of the importing Party shall, within 12 months after the exporting Party receives the request for verification, provide the competent authority of the exporting Party with a written determination of whether or not the good meets the requirements of this Chapter, including findings of fact and the legal basis for the determination.
7. (a) The relevant authority of the importing Party may deny preferential tariff treatment to a good where the importer of the good does not respond to a request for information related to a Proof of Origin from the relevant authority of the importing Party pursuant to subparagraph 2(a).
(b) The relevant authority of the importing Party may deny preferential tariff treatment, and a written determination thereof shall be sent to the competent authority of the exporting Party, where:
(i) the requirements to provide the information within the period referred to in paragraph 4 or subparagraph 5(d) or to respond to the communication referred to in subparagraph 5(a) within the period referred to in subparagraph 5(c) are not met;
(ii) the request referred to in subparagraph 2(d) is refused; or
(iii) the information provided to the relevant authority of the importing Party pursuant to subparagraphs 2(b), 2(c) and 2(d) is not sufficient to prove that the good meets the requirements of this Chapter.
(c) The customs authority of the importing Party may suspend preferential tariff treatment to the goods covered by the Proof of Origin concerned while awaiting the results of the verification. However, the suspension of the preferential tariff treatment shall not be a reason to stop the release of the goods.
(d) A Party may suspend preferential tariff treatment to an importer on any subsequent import of a good when the relevant authority had already determined that an identical good from the same producer was not eligible for such treatment, until it is demonstrated that the good complies with the provisions under this Chapter.

Article 67. Penalties

Each Party shall adopt or maintain appropriate penalties or other measures against violations of its laws and regulations relating to the provisions of this Chapter.

Article 68. Confidentiality

1. Each Party shall maintain in accordance with its laws and regulations, the confidentiality of information provided to it as confidential by the other Party pursuant to this Chapter, and shall protect that information from disclosure.
2. Information obtained by the relevant authority of the importing Party pursuant to this Chapter:
(a) may only be used by such authority for the purposes of this Chapter; and
(b) shall not be used by the importing Party in any criminal proceedings carried out by a court or a judge, unless permission to use such information is requested by and provided to the importing Party through the diplomatic channels or other channels established in accordance with the applicable laws and regulations of the exporting Party.

Article 69. Sub-committee on Rules of Origin

1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Sub-Committee on Rules of Origin (hereinafter referred to in this Article as "the Sub-Committee"). 2. The functions of the Sub-Committee shall be:
(a) reviewing and making appropriate recommendations, as necessary, to the Commission on:
(i) the effective, uniform and consistent administration of this Chapter, including its interpretation, application and enhancement of cooperation in this regard;
(ii) any amendments to Annex 3, taking into account the amendment of the Harmonized System, as well as Annex 4 proposed by either Party; and
(iii) the Operational Procedures referred to in Article 70;
(b) considering any other matter related to this Chapter, such as tariff classification and customs valuation related to the determination of origin, calculation of the qualifying value content, and development of an electronic certification system, as the Parties may agree;
(c) reporting the findings of the Sub-Committee to the Commission; and
(d) other functions assigned by the Commission.
3. The Sub-Committee shall hold meetings at such times and venues or by means, as may be agreed by the Parties.

Article 70. Operational Procedures

Upon entry into force of this Agreement, the Commission may adopt Operational Procedures that provide detailed guidelines regarding the provisions of this Chapter.

Article 71. Miscellaneous

Communications between the importing Party and the exporting Party shall be conducted in the English language.

Article 72. Transitional Provisions for Goods In Transit or Storage

This Agreement may be applied to goods which comply with the provisions of this Chapter, and which on the date of entry into force of this Agreement, are either in transit from the exporting Party to the importing Party or in temporary storage in a bonded warehouse under customs control. Such application shall be subject to the submission to the customs authority of the importing Party, within four months after the date of entry into force of this Agreement, of a Certificate of Origin issued retrospectively or an origin declaration, together with the documents pursuant to Article 60 showing that the goods comply with the consignment criteria established in Article 52.

Chapter 4. Customs Procedures and Trade Facilitation

Article 73. Scope of Application

1. This Chapter shall apply to customs procedures required for the clearance of goods traded between the Parties and for customs control on goods traded between the Parties, including means of transport, which enter or leave the customs territory of the Parties.
2. This Chapter shall be implemented by the Parties in accordance with the laws and regulations of each Party. Note: For the purposes of this Article and Article 75, the term "customs territory" means the territory in which customs laws of a Party apply.

Article 74. Objectives

The objectives of this Chapter are:
(a) to establish a framework to ensure transparency, proper application of customs laws and prompt clearance of goods; and
(b) to promote cooperation in the field of customs procedures, with a view to facilitating trade in goods between the Parties and preventing, investigating and repressing any violation of customs laws.

Article 75. Definition

For the purposes of this Chapter, the term "customs laws" means the statutory and regulatory provisions relating to the importation, exportation and transit or storage of goods, as they relate to prohibitions, restrictions and other similar controls with respect to the movement of controlled goods across the boundary of the customs territory of each Party.

Article 76. Transparency

1. Each Party shall ensure that all relevant information of general application pertaining to its customs laws is readily available to any interested person, in English to the extent possible.
2. When information that has been made available must be revised due to changes in its customs laws, each Party shall, to the extent possible, make the revised information readily available in English sufficiently in advance of the entry into force of the changes to enable interested persons to take account of them, unless such an advance notice is precluded.
3. At the request of any interested person of the Parties, each Party shall provide, as quickly and accurately as possible, information relating to the specific customs matters raised by the interested person and pertaining to its customs laws. Each Party shall supply not only the information specifically requested but also any other pertinent information which it considers the interested person should be made aware of.
4. Each Party shall designate one or more enquiry points to answer reasonable enquiries from any interested person of the Parties concerning customs matters, and shall make publicly available, including through its website, the names and addresses of such enquiry points.

Article 77. Information and Communications Technology

Each Party shall promote the use of information and communications technology in its customs procedures.

Article 78. Risk Management

In order to facilitate their customs procedures, the Parties shall maintain risk management systems that enable them to concentrate inspection activities on high risk goods and that simplify the clearance, including release, and movement of low risk goods.

Article 79. Customs Clearance

1. The Parties shall apply their respective customs procedures in a predictable, consistent and transparent manner.
2. For prompt customs clearance, including release, of goods traded between the Parties each Party shall:
(a) simplify its customs procedures;
(b) harmonize its customs procedures, to the extent possible, with relevant international standards and recommended practices such as those made under the auspices of the Customs Co-operation Council;
(c) promote cooperation, wherever appropriate, between its customs authority and:
(i) other national authorities of the Party; and
(ii) the trading communities of the Party; and
(d) adopt or maintain customs procedures:
(i) for checking of the information, including documents, relating to the clearance of goods prior to the arrival of goods to be imported; and
(ii) for allowing goods to be released for importation without being placed in customs warehouses as soon as its customs authority has examined them or decided not to examine them, provided that:
(A) no offence has been found;
(B) the import license or any other documents required have been acquired;
(C) all permits relating to the customs procedures concerned have been acquired; and
(D) any duties and taxes have been paid or that appropriate action has been taken to ensure their collection.

Article 80. Separate and Expedited Customs Procedures for Shipment

Each Party shall adopt or maintain separate and expedited customs procedures for shipment. Such procedures shall provide a simplified clearance of goods after submission of all the necessary customs documents in accordance with the laws and regulations of each Party.

Article 81. Advance Rulings

The importing Party shall adopt or maintain, in accordance with its laws and regulations, procedures of advance ruling that is issued prior to the importation of a good, concerning the tariff classification of the good, the customs valuation of the good and the qualification of the good as an originating good of the exporting Party under the provisions of Chapter 3, where a written application is made with all the necessary information by importers of the good or their authorized representatives, or exporters or producers of the good in the exporting Party or their authorized representatives and the importing Party has no reasonable grounds to deny the issuance.

Article 82. Review

Each Party shall, in relation to any decision concerning customs matters taken by the Party, provide affected parties with easily accessible processes of administrative and judicial review. Such review shall be independent of the official or office making the decision.

Article 83. Customs Cooperation and Exchange of Information

1. The Parties shall cooperate and exchange information with each other in the field of customs procedures within the available resources of their respective customs authorities. Such cooperation and exchange of information include mutual administrative assistance and technical assistance.
2. Cooperation and exchange of information pursuant to paragraph 1 shall be implemented as provided for in the Implementing Agreement.
3. Paragraph 1 of Article 7 shall not apply to the exchange of information under this Article.

Article 84. Penalties

Each Party shall adopt or maintain appropriate sanctions or other measures against violations of its customs laws, for the purposes of this Chapter.

Article 85. Sub-committee on Customs Procedures and Trade Facilitation

1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Sub-Committee on Customs Procedures and Trade Facilitation (hereinafter referred to in this Article as "the Sub- Committee").
2. The functions of the Sub-Committee shall be:
(a) reviewing the implementation and operation of this Chapter;
(b) identifying areas, relating to this Chapter, to be improved for facilitating trade between the Parties;
(c) reporting the findings of the Sub-Committee to the Commission;
(d) consulting on tariff classification issues to resolve any difference that may arise between the Parties; and Note: If the issue is not resolved in the course of consultations referred to in this subparagraph, it shall be referred to the Harmonized System Committee of the Customs Co-operation Council.
(e) other functions assigned by the Commission.
3. The Sub-Committee shall be composed of government officials of the Parties.
4. The Sub-Committee shall hold meetings at such times and venues or by means, as may be agreed by the Parties.

Chapter 5. Sanitary and Phytosanitary Measures

Article 86. Scope of Application

This Chapter shall apply to all sanitary and phytosanitary (hereinafter referred to as "SPS") measures of the Parties under the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement (hereinafter referred to as "SPS Agreement"), that may, directly or indirectly, affect trade in goods between the Parties.

Article 87. Reaffirmation of Rights and Obligations

The Parties reaffirm their rights and obligations relating to SPS measures under the SPS Agreement.

Article 88. Enquiry Points

Each Party shall designate an enquiry point which is able to answer all reasonable enquiries from the other Party regarding SPS measures and, if appropriate, to provide the relevant information.

Article 89. Sub-committee on Sps Measures

1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Sub-Committee on SPS Measures (hereinafter referred to in this Article as "the Sub-Committee"). 2. The functions of the Sub-Committee shall be:
(a) reviewing the implementation and operation of this Chapter;
(b) exchanging information on such matters as occurrences of SPS incidents in the Parties, and change or introduction of SPS-related regulations and standards of the Parties, which may, directly or indirectly, affect trade in goods between the Parties in order to improve mutual understanding of each Party's SPS measures including their administrative procedures;
(c) notifying either Party of information on potential SPS risks recognized by the other Party;
(d) undertaking science-based technical consultations to identify and address specific issues between the Parties that may arise from the application of SPS measures;
(e) consulting on cooperative efforts between the Parties in international fora in relation to SPS measures;
(f) discussing technical cooperation between the Parties on SPS measures including capacity building, technical assistance and exchange of experts subject to the availability of appropriated funds and the applicable laws and regulations of each Party; and
(g) other functions assigned by the Commission.
3. The Sub-Committee shall be composed of government officials of the Parties with necessary expertise relevant to the issues to be discussed.
4. The Sub-Committee shall hold meetings at such times and venues or by means, as may be agreed by the Parties.
5. For the purposes of this Article, the Sub-Committee shall be coordinated by:
(a) in the case of Japan, the Ministry of Foreign Affairs, or its successor; and
(b) in the case of Peru, the Ministry of Foreign Trade and Tourism, or its successor.

Chapter 6. Technical Regulations, Standards and Conformity Assessment Procedures

Article 90. Scope of Application

1. This Chapter shall apply to technical regulations, standards and conformity assessment procedures as defined in the Agreement on Technical Barriers to Trade in Annex 1A to the WTO Agreement (hereinafter referred to as "TBT Agreement"), that may affect the trade in goods between the Parties.
2. This Chapter shall not apply to:
(a) purchasing specifications prepared by governmental bodies for production or consumption requirements of such bodies; or
(b) SPS measures as defined in Annex A of the SPS Agreement.

Article 91. Objectives

The objectives of this Chapter are:
(a) to increase and facilitate trade between the Parties, through the improvement of the implementation of the TBT Agreement;
(b) to ensure that technical regulations, standards and conformity assessment procedures do not create unnecessary obstacles to trade; and (c) to enhance joint cooperation between the Parties.

Article 92. Definitions

For the purposes of this Chapter, the terms and definitions set out in Annex 1 of the TBT Agreement shall apply.

Article 93. Reaffirmation of Rights and Obligations

The Parties reaffirm their rights and obligations relating to technical regulations, standards and conformity assessment procedures under the TBT Agreement.

Article 94. International Standards

1. Each Party shall use relevant international standards and guides or recommendations to the extent provided in paragraph 4 of Article 2 and paragraph 4 of Article 5 of the TBT Agreement, as a basis for its technical regulations and conformity assessment procedures.
2. Each Party shall encourage its national standardizing bodies to cooperate with the relevant national standardizing bodies of the other Party in international standardizing activities. Such cooperation may take place in regional and international standardizing bodies of which they are both members.

Article 95. Technical Regulations

1. Each Party shall give positive consideration to accepting as equivalent technical regulations of the other Party, even if these regulations differ from its own, provided it is satisfied that these regulations adequately fulfill the objectives of its own regulations.
2. Where a Party does not accept a technical regulation of the other Party as equivalent to its own, it shall, at the request of the other Party, explain its decision.
3. At the request of a Party that has an interest in developing a technical regulation similar to a technical regulation of the other Party, such other Party shall provide, to the extent practicable, relevant information, including studies or documents, except for confidential information, on which it has relied in its development.

Article 96. Conformity Assessment

1. The Parties recognize that a broad range of mechanisms exists to facilitate the acceptance in a Party of the results of conformity assessment procedures conducted in the other Party. Each Party shall, on request of the other Party, provide information on the range of such mechanisms used in its Area.
2. Where a Party does not accept the results of a conformity assessment procedure conducted in the other Party, it shall, on request of the other Party and subject to the laws and regulations of that Party, explain the reasons for its decision so that corrective action may be taken by the other Party when appropriate.
3. Each Party shall, whenever possible, accredit, designate or recognize conformity assessment bodies in the other Party on terms no less favorable than those it accords to conformity assessment bodies in its Area. If a Party accredits, designates or recognizes a body assessing conformity with a particular technical regulation or standard in its Area and it refuses to accredit, designate or recognize a body in the other Party assessing conformity with that technical regulation or standard, it shall, on request, explain the reasons for its refusal. 4. Where a Party declines a request from the other Party to enter into negotiations to conclude an arrangement for recognition in its Area of the results of conformity assessment procedures conducted by conformity assessment bodies in the other Party, it shall explain the reasons for its decision.

Article 97. Transparency

1. Each Party shall notify electronically to the other Party's enquiry point, established under Article 10 of the TBT Agreement, at the same time it submits its notification to the WTO Secretariat in accordance with the TBT Agreement:
(a) its proposed technical regulations and conformity assessment procedures; and
(b) its technical regulations and conformity assessment procedures adopted to address urgent problems of safety, health, environmental protection or national security arising or threatening to arise.
2. The notification of technical regulations and conformity assessment procedures shall include a link to or, if requested by the other Party, a copy of, the English version of such technical regulations and conformity assessment procedures, where possible, or in case of voluminous copies, an English summary of such technical regulations and conformity assessment procedures that includes the main requirements thereof.
3. The Parties shall endeavor to allow a period of at least 60 days following the notification of proposed technical regulations and conformity assessment procedures for the public and the other Party to provide written comments, except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise. A Party shall give positive consideration to a reasonable request for extending the comment period.
4. Each Party shall, on request of the other Party, provide information regarding the objectives of, and rationale for, a technical regulation or conformity assessment procedure that the Party has adopted or is proposing to adopt.
5. Each Party shall endeavor to ensure that all adopted technical regulations and conformity assessment procedures are available on official websites that are freely and publicly available. The Parties shall exchange the list of official websites in a period of 60 days from the entry into force of this Agreement and any modification to that list, when appropriate.
6. Where a Party detains at a port of entry a good exported from the other Party due to a perceived failure to comply with a technical regulation, it shall endeavor to immediately notify the importer of the reasons for the detention of the good.

Article 98. Technical Cooperation

The Parties shall give positive consideration to supply each other cooperation and technical assistance, to the extent possible, in order to, inter alia:
(a) encourage the enforcement of this Chapter;
(b) encourage the enforcement of the TBT Agreement;
(c) strengthen the corresponding bodies of standardization, technical regulation and conformity assessment, including the formation and training of the human resources; and
(d) increase the collaboration in international organizations in the areas of standardization and conformity assessment.

Article 99. Sub-committee on Technical Regulations, Standards and Conformity Assessment Procedures

1. The Parties hereby establish a Sub-Committee on Technical Regulations, Standards and Conformity Assessment Procedures (hereinafter referred to in this Article as "the Sub-Committee").
2. The functions of the Sub-Committee shall be:
(a) monitoring the implementation and operation of this Chapter;
(b) promptly addressing any issue that a Party raises related to the development, adoption or application of technical regulations, standards and conformity assessment procedures under this Chapter and the TBT Agreement;
(c) enhancing joint cooperation in the development and improvement of technical regulations, standards and conformity assessment procedures;
(d) exchanging information on technical regulations, standards and conformity assessment procedures;
(e) reviewing this Chapter in light of any developments under the WTO Committee on Technical Barriers to Trade established under Article 13 of the TBT Agreement, and if necessary, developing recommendations for amendments to this Chapter;
(f) as it considers appropriate, reporting to the Commission on the implementation and operation of this Chapter;
(g) establishing, if necessary to achieve the objectives of this Chapter, ad hoc working groups to deal with specific issues or sectors;
(h) exchanging information on the work in regional and multilateral fora engaged in activities related to technical regulations, standards and conformity assessment procedures;
(i) taking any steps the Parties may consider that will assist them in implementing this Chapter and the TBT Agreement and in facilitating trade between the Parties; and
(j) other functions assigned by the Commission.
3. The Sub-Committee shall be composed of government officials of the Parties.
4. The Sub-Committee shall hold meetings at such times and venues or by means, as may be agreed by the Parties. 5. For the purposes of this Article, the Sub-Committee shall be coordinated by:
(a) in the case of Japan, the Ministry of Foreign Affairs, or its successor; and
(b) in the case of Peru, the Ministry of Foreign Trade and Tourism, or its successor.
6. The authorities referred to in paragraph 5 will be responsible for coordinating with the relevant institutions and persons in their Areas as well as ensuring that such institutions and persons are convened when necessary.

Article 100. Information Exchange

Any information or explanation requested by a Party pursuant to this Chapter shall be provided by the other Party, in print or electronically, within a reasonable period of time agreed between the Parties and, if possible, within 60 days.

Chapter 7. Cross-border Trade In Services

Article 101. Scope of Application

1. This Chapter shall apply to measures adopted or maintained by a Party affecting cross-border trade in services by service suppliers of the other Party. Such measures include measures affecting:
(a) the supply of a service;
(b) the purchase or use of, or payment for, a service;
(c) the access to and the use of services offered to the public generally, including distribution, transport or telecommunications networks and services, in connection with the supply of a service;
(d) the presence in its Area of a service supplier of the other Party; and
(e) the provision of a bond or other form of financial security as a condition for the supply of a service.
2. This Chapter shall not apply to:
(a) in respect of air transport services, measures affecting traffic rights, however granted, or measures affecting services directly related to the exercise of traffic rights, other than measures affecting:
(i) aircraft repair and maintenance services;
(ii) the selling and marketing of air transport services; and
(iii) computer reservation system (CRS) services; and
(b) government procurement as defined in Article 144.
3. Articles 103, 106, 110 and 111 shall also apply to measures by a Party affecting the supply of a service by covered investments. Note: The Parties understand that none of the provisions of this Chapter, including this paragraph and any of its Annexes, is subject to Article 18 (Settlement of Investment Disputes between a Contracting Party and an Investor of the Other Contracting Party) of the BIT.
4. This Chapter shall not impose any obligation on a Party with respect to a national of the other Party seeking access to its employment market, or employed on a permanent basis in that Party and shall not confer any right on that national with respect to that access or employment.
5. This Chapter shall not apply to services supplied in the exercise of governmental authority. A service supplied in the exercise of governmental authority means a service which is supplied neither on a commercial basis nor in competition with one or more service suppliers.
6. Annex 7 provides for supplementary provisions to this Chapter, including scope of application and definitions, and the BIT, on measures by a Party affecting trade in financial services.

Note: For the purposes of this paragraph, "trade in financial services" refers to trade in financial services as defined in subparagraph 1(f) of Article 2 of Annex 7.

Article 102. Definitions

1. For the purposes of this Chapter:
(a) the term "aircraft repair and maintenance services" means such activities when undertaken on an aircraft or a part thereof while it is withdrawn from services and does not include so- called line maintenance;
(b) the term "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;
(c) the term "covered investments" means, with respect to a Party, investments of an investor of the other Party in the Area of the Party existing on the date of entry into force of this Agreement or established, acquired or expanded thereafter;
(d) the term "cross-border trade in services" or "cross-border supply of services" means the supply of a service:
(i) from the Area of a Party into the Area of the other Party;
(ii) in the Area of a Party by a person of that Party to a person of the other Party; or
(iii) by a national of a Party in the Area of the other Party;
(e) the term "enterprise of a Party" means an enterprise constituted or organized under the laws of a Party; (f) the term "existing" means in effect on the date of entry into force of this Agreement, except for entry 35 of Part 1 of Annex 5;
(g) the term "measure adopted or maintained by a Party" means any measure adopted or maintained by:
(i) any level of government or authority of a Party; and
(ii) non-governmental bodies in the exercise of powers delegated by any level of government or authority of a Party;
(h) the term "national" means a natural person who is a national of a Party under its laws;
(i) the term "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;
(j) the term "service supplier" means a person that supplies or seeks to supply a service; Note: Where the service is not supplied or sought to be supplied directly by an enterprise but through its covered investments such as a branch or a representative office, the service supplier (i.e. the enterprise) shall, nonetheless, through such covered investments be accorded the treatment provided for service suppliers under this Chapter. Such treatment shall be extended to the covered investments through which the service is supplied or sought to be supplied and need not be extended to any other parts of the service supplier located outside the Area of a Party where the service is supplied or sought to be supplied.
(k) the term "supply of a service" includes the production, distribution, marketing, sale and delivery of a service; and
(l) the term "traffic rights" means the rights 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 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.
2. For the purposes of this Chapter, an enterprise is: (a) "owned" by a person if more than 50 percent of the equity interests in it is beneficially owned by the person; and (b) "controlled" by a person if the person has the power to name a majority of its directors or otherwise to legally direct its actions.

Article 103. Subsidies

1. Each Party shall promptly and at least annually inform the other Party of the introduction of any new subsidy or grant which significantly affects trade in services covered by its specific commitments under the GATS.
2. A Party which considers that it is adversely affected by a subsidy or grant of the other Party may request consultations with the other Party on such matters. The other Party shall accord sympathetic consideration to such requests. Note: "Consultations" referred to in this Chapter does not mean consultations under Article 208.
3. If the results of the negotiations referred to in paragraph 1 of Article XV of the GATS (or the results of any similar negotiation undertaken in other multilateral fora in which the Parties participate) enter into force for the Parties, they shall jointly review the results of the negotiations with a view to incorporating into this Chapter, as appropriate, any discipline agreed in such negotiations.

Article 104. National Treatment

Each Party shall accord to services and service suppliers of the other Party treatment no less favorable than that it accords, in like circumstances, to its own services and service suppliers. Note: For greater certainty, nothing in this Article shall be construed to require either Party to compensate for any inherent competitive disadvantages which result from the foreign character of the relevant services or service suppliers.

Article 105. Most-favored-nation Treatment

Each Party shall accord to services and service suppliers of the other Party treatment no less favorable than that it accords, in like circumstances, to services and service suppliers of any non-Party.

Article 106. Market Access

Neither Party shall maintain or adopt either on the basis of a regional subdivision or on the basis of its entire Area measures defined as:
(a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;
(b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(c) limitations on the total number of service operations or on the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; Note: This subparagraph does not cover measures of a Party which limit inputs for the supply of services.
(d) limitations on the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; and
(e) measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service.

Article 107. Local Presence

Neither Party shall require a service supplier of the other Party to establish or maintain a representative office, a branch or any form of enterprise, or to be resident, in its Area as a condition for the cross-border supply of a service.

Article 108. Non-conforming Measures

1. Articles 104 through 107 shall not apply to:
(a) any existing non-conforming measure that is maintained by:
(i) with respect to Japan:
(A) the central government or a prefecture, as set out in its Schedule in Part 1 of Annex 5; or
(B) a local government other than prefectures; and
(ii) with respect to Peru:
(A) the central government or a regional government, as set out in its Schedule in Part 2 of Annex 5; or
(B) a local government;
(b) the continuation or prompt renewal of any nonconforming measure referred to in subparagraph (a); or
(c) an amendment or modification to any nonconforming measure referred to in subparagraph (a), to the extent that the amendment or modification does not decrease the conformity of the measure, as it existed immediately before the amendment or modification, with Articles 104 through 107.
2. Articles 104 through 107 shall not apply to any measure that a Party adopts or maintains with respect to sectors, sub-sectors or activities, as set out in its Schedule in Annex 6.

Article 109. Notification

1. In the case where a Party makes an amendment or modification to any existing non-conforming measure as set out in its Schedule in Annex 5 in accordance with subparagraph 1(c) of Article 108, the Party shall notify the other Party, as soon as possible, of such amendment or modification.
2. In the case where a Party adopts any measure after the entry into force of this Agreement, with respect to sectors, sub-sectors or activities as set out in its Schedule in Annex 6, the Party shall, to the extent possible, notify the other Party of such measure.

Article 110. Transparency

Further to Chapter 1:
(a) each Party shall endeavor, to the extent possible, to respond to inquiries from interested persons regarding its regulations relating to the subject matter of this Chapter; and
(b) where each Party adopts regulations relating to the subject matter of this Chapter, it shall, to the extent possible, publish comments received from the public and results of its consideration with respect to the proposed regulations.

Note: For greater certainty, a Party may consolidate the comments and results, and publish them in a separate document from the one that sets forth the final regulations.

Article 111. Domestic Regulation

1. Where a Party requires authorization for the supply of a service, its competent authorities shall, within a reasonable period of time after the submission of an application considered complete under its laws and regulations, inform the applicant of the decision concerning the application. At the request of the applicant, the competent authorities of that Party shall provide, without undue delay, information concerning the status of the application.
2. With a view to ensuring that any measure adopted or maintained by a Party in any services sector relating to the qualification requirements and procedures, technical standards and licensing requirements of service suppliers of the other Party does not constitute an unnecessary barrier to trade in services, each Party shall ensure that such measure:
(a) is based on objective and transparent criteria, such as the competence and ability to supply the service; (b) is not more burdensome than necessary to ensure the quality of the service; and
(c) in the case of licensing procedures, is not in itself a restriction on the supply of the service.
3. Paragraph 2 is binding upon a Party only in sectors in which it has undertaken specific commitments in its Schedule under the GATS. Paragraph 2 shall be applied, to the extent possible, to the sectors where a Party has not undertaken specific commitments in its Schedule under the GATS.

Note: For the purposes of this paragraph, the term "sector" means one or more, or all, sub-sectors of the service concerned, as specified in a Party's Schedule under the GATS.
4. The Parties affirm their commitments with respect to the development of any necessary disciplines pursuant to paragraph 4 of Article VI of the GATS. To the extent that any such disciplines are adopted by the WTO Members, the Parties shall review them jointly with a view to incorporating them into this Chapter as appropriate.

Article 112. Recognition

1. For the purposes of the fulfillment, in whole or in part, of its standards or criteria for the authorization, licensing or certification of service suppliers, and subject to the requirements of paragraph 4, a Party may recognize the education or experience obtained, requirements met, or licenses or certifications granted in a particular country. Such recognition, which may be achieved through harmonization or otherwise, may be based upon an agreement or arrangement with the country concerned or may be accorded autonomously. 2. Where a Party recognizes, autonomously, or by an agreement or arrangement, the education or experience obtained, requirements met, or licenses or certifications granted in a non-Party, nothing in Article 105 shall be construed to require the Party to accord such recognition to the education or experience obtained, requirements met, or licenses or certifications granted in the other Party.
3. A Party that is a party to an agreement or arrangement referred to in paragraph 2, whether existing or future, shall afford adequate opportunity for the other Party, if that other Party is interested, to negotiate its accession to such an agreement or arrangement, or to negotiate one comparable with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that education or experience obtained, requirements met, or licenses or certifications granted in that other Party should be recognized.
4. Neither Party shall accord recognition in a manner that would constitute a means of discrimination between countries in the application of its standards or criteria for the authorization, licensing or certification of service suppliers, or a disguised restriction on cross- border trade in services.

Article 113. Payments and Transfers

1. Each Party shall permit all transfers and payments relating to the cross-border supply of services to be made freely and without delay into and out of its Area.
2. Each Party shall permit such transfers and payments relating to the cross-border supply of services to be made in a freely usable currency at the market rate of exchange prevailing at the time of transfer or payment.
3. Notwithstanding paragraphs 1 and 2, a Party may prevent or delay a transfer or payment through the equitable, non-discriminatory and good faith application of its laws relating to:
(a) bankruptcy, insolvency or the protection of the rights of creditors;
(b) issuing, trading or dealing in securities, futures, options or derivatives;
(c) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities;
(d) criminal or penal offences; or
(e) ensuring compliance with orders or judgments in judicial or administrative proceedings.
4. Nothing in this Chapter shall affect the rights and obligations of the Parties as members of the International Monetary Fund under the Articles of Agreement of the International Monetary Fund, including the use of exchange actions which are in conformity with the Articles of Agreement of the International Monetary Fund, provided that a Party shall not impose restrictions on any capital transactions inconsistently with the obligations under this Chapter regarding such transactions, except under Article 13, or at the request of the International Monetary Fund.

Article 114. Implementation

The Parties shall consult to review the implementation of this Chapter and consider other matters of mutual interest affecting cross-border trade in services within the framework of the Commission established under Article 14.

Article 115. Denial of Benefits

1. A Party may deny the benefits of this Chapter to a service supplier of the other Party that is an enterprise of the other Party, where the former Party establishes that the enterprise is owned or controlled by persons of a non- Party, and the former Party:
(a) does not maintain diplomatic relations with the non-Party; or
(b) adopts or maintains measures with respect to the non-Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of this Chapter were accorded to the enterprise.
2. Subject to prior notification and consultation, a Party may deny the benefits of this Chapter to a service supplier of the other Party that is an enterprise owned or controlled by persons of a non-Party and that has no substantial business activities in the Area of the other Party.

Chapter 8. Telecommunications Services

Article 116. Scope of Application

1. This Chapter shall apply to:
(a) measures adopted or maintained by a Party relating to access to and use of public telecommunications transport networks and services;
(b) measures adopted or maintained by a Party relating to obligations of suppliers of public telecommunications transport networks and services; and
(c) other measures adopted or maintained by a Party relating to public telecommunications transport networks and services.
2. Articles 125 and 131 shall also apply to telecommunications services.
3. This Chapter shall not apply to measures by a Party affecting broadcasting services, including cable distribution of radio and television programming, as defined in its laws and regulations.
4. Nothing in this Chapter shall be construed to:
(a) require a Party to authorize a service supplier of the other Party to establish, construct, acquire, lease, operate or supply telecommunications transport networks or services other than specifically provided in this Agreement;
(b) require a Party (or require a Party to oblige service suppliers under its jurisdiction) to establish, construct, acquire, lease, operate or supply telecommunications transport networks or services not offered to the public generally; or
(c) prevent a Party from prohibiting persons operating private networks from using their networks to supply public telecommunications transport networks or services to third persons.

Article 117. Definitions

For the purposes of this Chapter:
(a) the term "cost-oriented" means based on cost, and may include a reasonable profit, and may involve different cost methodologies for different facilities or services;
(b) the term "end user" means a final consumer of or subscriber to a public telecommunications transport network or service, including a service supplier other than a supplier of public telecommunications transport networks or services;
(c) the term "essential facilities" means facilities of a public telecommunications transport network or service that:
(i) are exclusively or predominantly provided by a single or limited number of suppliers; and
(ii) cannot feasibly be economically or technically substituted in order to provide a service;
(d) the term "leased circuits" means telecommunications facilities between two or more designated points that are set aside for the dedicated use of, or availability to, particular users;
(e) the term "major supplier" means a supplier which has the ability to materially affect the terms of participation, having regard to price and supply, in the relevant market for basic telecommunications services as a result of:
(i) control over essential facilities; or
(ii) use of its position in the market;

Note 1: For Peru, rural telephone companies that have at least 80 percent of their total fixed subscriber lines in operation in rural areas may not be considered as major suppliers.

Note 2: For the purposes of this Chapter, basic telecommunications services do not include non-public telecommunications services and value added services. Each Party may classify which services in its Area are value-added services.
(f) the term "non-discriminatory" means treatment no less favorable than that accorded to any other user of like public telecommunications transport networks or services under like circumstances;
(g) the term "public telecommunications transport network" means the public telecommunications infrastructure which permits telecommunications between and among defined network termination points; (h) the term "public telecommunications transport service" means any telecommunications transport service required, explicitly or in effect, by a Party to be offered to the public generally, typically involving customer-supplied information between two or more points without any end-to-end change in the form or content of the customer's information. Such services may include, inter alia, telegraph, telephone, telex and data transmission;
(i) the term "telecommunications" means the transmission and reception of signals by any electromagnetic means including by photonic means;
(j) the term "telecommunications regulatory body" means the body responsible for the regulation of telecommunications; and
(k) the term "users" means consumers of, subscribers to or suppliers of public telecommunications transport networks or services.

Article 118. Access and Use

1. Each Party shall ensure that any service supplier of the other Party is accorded access to and use of public telecommunications transport networks and services in a timely fashion, on transparent, reasonable and nondiscriminatory terms and conditions. This obligation shall be applied, inter alia, through paragraphs 2 through 6.
2. Each Party shall ensure that service suppliers of the other Party have access to and use of any public telecommunications transport network or service offered within or across the border of that Party, including private leased circuits, and to this end shall ensure, subject to the provisions of paragraphs 5 and 6, that such suppliers are permitted:
(a) to purchase or lease and attach terminal or other equipment which interfaces with the network and which is necessary to supply their services;
(b) to interconnect private leased or owned circuits with public telecommunications transport networks and services or with circuits leased or owned by other service suppliers;
(c) to use operating protocols of their choice in the supply of any service, other than as necessary to ensure the availability of telecommunications transport networks and services to the public generally; and
(d) to perform switching, signaling and processing functions.
3. Each Party shall ensure that service suppliers of the other Party may use public telecommunications transport networks and services for the movement of information within and across borders, including for intra-corporate communications of such service suppliers, and for access to information contained in data bases or otherwise stored in machine-readable form in either Party or in any other member of the WTO.
4. Notwithstanding the provisions of paragraph 3, a Party may take such measures as are necessary:
(a) to ensure the security and confidentiality of messages; or
(b) to protect the personal data of users of public telecommunications transport networks or services, subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade in services.
5. Each Party shall ensure that no condition is imposed on access to and use of public telecommunications transport networks and services other than as necessary:
(a) to safeguard the public service responsibilities of suppliers of public telecommunications transport networks and services, in particular their ability to make their networks or services available to the public generally; or
(b) to protect the technical integrity of public telecommunications transport networks or services.
6. Provided that they satisfy the criteria set out in paragraph 5, conditions for access to and use of public telecommunications transport networks and services may include:
(a) a requirement to use specified technical interfaces, including interface protocols, for interconnection with public telecommunications transport networks and services;
(b) requirements, where necessary, for the interoperability of public telecommunications transport services and to encourage the achievement of the goals set out in Article 131;
(c) type approval of terminal or other equipment which interfaces with public telecommunications transport networks and technical requirements relating to the attachment of such equipment to such networks;
(d) restrictions on inter-connection of private leased or owned circuits with public telecommunications transport networks or services or with circuits leased or owned by other service suppliers; or
(e) notification, permit, registration and licensing. Note: For greater certainty, this Article shall not prohibit a Party from requiring any service supplier of the other Party to obtain a license, concession, or other type of authorization to supply public telecommunications transport networks or services in its Area.

Article 119. Number Portability

Each Party shall ensure that suppliers of public telecommunications transport networks or services in its Area provide number portability for mobile services and any other services designated by that Party, to the extent technically feasible, on a timely basis and on reasonable terms and conditions. Note: For the purposes of this Article, Peru may take into account the economic feasibility of providing number portability.

Article 120. Competitive Safeguards

1. Each Party shall adopt and maintain appropriate measures for the purpose of preventing suppliers who, alone or together, are a major supplier from engaging in or continuing anti-competitive practices.
2. The anti-competitive practices referred to in paragraph 1 shall include, in particular:
(a) engaging in anti-competitive cross-subsidization;
(b) using information obtained from competitors with anti-competitive results; and
(c) not making available to other suppliers of public telecommunications transport networks or services, on a timely basis, technical information about essential facilities and commercially relevant information which are necessary for them to supply services.

Article 121. Treatment by Major Suppliers

Each Party shall ensure that a major supplier in its Area accords to suppliers of public telecommunications transport networks and services of the other Party treatment no less favorable than that such major supplier accords in like circumstances to itself, its subsidiaries and affiliates, or any non-affiliated service suppliers regarding:
(a) the availability, provisioning, rates or quality of like telecommunications services; and
(b) the availability of technical interfaces necessary for interconnection.

Note: For Japan, this Article shall be applied only to a major supplier which has control over essential facilities.

Article 122. Resale

Each Party shall ensure that suppliers of public telecommunications transport services in its Area do not impose unreasonable or discriminatory conditions or limitations on the provision of the resale services by suppliers of public telecommunications transport networks or services of the other Party.

Article 123. Interconnection

1. Each Party shall ensure that a major supplier in its Area provides interconnection for the facilities and equipments of suppliers of public telecommunications transport networks and services of the other Party at any technically feasible point in the network. Such interconnection shall be provided:
(a) under non-discriminatory terms, conditions (including technical standards and specifications) and rates; (b) with a quality no less favorable than that provided by such major supplier for its own like services, or for like services of non-affiliated service suppliers or of its subsidiaries or other affiliates;
(c) in a timely fashion, on terms, conditions (including technical standards and specifications) and cost-oriented rates that are transparent, reasonable, having regard to economic feasibility, and sufficiently unbundled so that the supplier of public telecommunications transport networks or services of the other Party need not pay for network components or facilities that it does not require for the services to be provided; and
(d) upon request, at points in addition to the network termination points offered to the majority of users, subject to charges that reflect the cost of construction of necessary additional facilities.
2. Each Party shall require major suppliers in its Area to make publicly available reference interconnection offers or other standard interconnection offers containing the rates, terms and conditions that the major suppliers offer generally to suppliers of public telecommunications transport networks or services.
3. Each Party shall ensure that suppliers of public telecommunications transport networks or services of the other Party may interconnect their facilities and equipments with those of major suppliers in its Area pursuant to at least one of the following options:
(a) a reference interconnection offer, at a minimum, containing a list and description of the interconnection-related services offered, the terms and conditions for such services, the operational and technical requirements, and the procedures or processes that will be used to order and supply such services;
(b) another standard interconnection offer containing the terms and conditions, and, where possible, rates that the major suppliers offer generally to suppliers of public telecommunications transport networks or services;
(c) the terms and conditions of an interconnection agreement in force; or
(d) the terms and conditions provided through negotiation of a new interconnection agreement.
4. Each Party shall ensure that the procedures applicable for interconnection to a major supplier are made publicly available.
5. Each Party shall ensure that a major supplier in its Area makes publicly available either its interconnection agreements, reference interconnection offer or another standard interconnection offer.
6. Each Party shall ensure that a major supplier does not use or provide commercially sensitive or confidential information on suppliers of public telecommunications transport networks or services or end users thereof, which was acquired through its interconnection business with telecommunications facilities of the suppliers of the public telecommunications transport networks or services, for purposes other than such interconnection business.
7. (a) Japan shall apply paragraphs 1 through 3 and 6 only to a major supplier which has control over essential facilities.
(b) Peru may apply paragraphs 1 through 3 and 6 only to a major supplier which has control over essential facilities.

Article 124. Provisioning and Pricing of Leased Circuit Services

Each Party shall ensure that a major supplier in its Area provides suppliers of public telecommunications transport networks and services of the other Party with leased circuit services that are public telecommunications transport networks or services on terms and conditions, and at rates, that are reasonable, non-discriminatory and transparent.

Note: For Japan, this Article shall be applied only to a major supplier which has control over essential facilities.

Article 125. Independent Telecommunications Regulatory Body

1. Each Party shall ensure that its telecommunications regulatory body is separate from, and not accountable to, any supplier of telecommunications services.
2. Each Party shall ensure that the decisions of, and the procedures used by, its telecommunications regulatory body are impartial with respect to all market participants.

Article 126. Universal Service

Each Party has the right to define the kind of universal service obligations it wishes to maintain. Such obligations shall not be regarded as anti-competitive per se, provided that they are administered in a transparent, non-discriminatory and competitively neutral manner, and are not more burdensome than necessary for the kind of universal service defined by the Party.

Article 127. Public Availability of Licensing Criteria

1. Where a license, concession, permit, registration or other type of authorization is required for the supply of public telecommunications transport networks or services, each Party shall make publicly available:
(a) all the licensing or other authorization criteria and procedures, and the period of time normally required to reach a decision concerning an application for a license, concession, permit, registration or other type of authorization; and
(b) the terms and conditions of individual licenses, concessions, permits, registrations or other type of authorizations it has issued.
2. The competent authority of a Party shall notify the applicant of the outcome of its application without undue delay after a decision has been taken. In case a decision is taken to deny an application for a license, concession, permit, registration or other type of authorization, the competent authority of the Party shall make known to the applicant, upon request, the reason for the denial.

Article 128. Allocation and Use of Scarce Resources

1. Each Party shall carry out any procedures for the allocation and use of scarce resources related to telecommunications, including frequencies, numbers and rights of way, in an objective, timely, transparent and non-discriminatory manner.
2. Each Party shall make publicly available the current state of allocated frequency bands, but shall not be required to provide detailed identification of frequencies allocated for specific government uses.
3. A Party's measures allocating and assigning spectrum and managing frequency are not measures that are per se inconsistent with Article 106. Accordingly, each Party retains the right to establish and apply spectrum and frequency management policies that have the effect of limiting the number of suppliers of public telecommunications transport networks or services, provided that it does so in a manner consistent with other provisions of this Agreement. Such right includes the ability to allocate frequency bands, taking into account current and future needs and spectrum availability.