(b) who has received an advance ruling pursuant to Article 5-09.
2. The rights referred to in paragraph 1 shall include access to at least one level of administrative review independent of the official or office responsible for the determination or advance ruling under review, and access to a judicial or quasi-judicial review of the determination or decision taken at the final level of administrative review, in accordance with its domestic law.
Article 5-12. Uniform Regulations
1. The Parties shall establish, and implement through their respective laws and regulations by the date of entry into force of this Agreement, and at any time thereafter, upon express agreement of the Parties, Uniform Regulations regarding the interpretation, application and administration of Chapter 3 (National Treatment and Market Access for Goods), Chapter 4 (Rules of Origin) and other matters as may be agreed by the Parties.
2. Each Party shall implement any modification of or addition to the Uniform Regulations no later than 180 days after the Parties agree on such modification or addition, or such other period as the Parties may agree.
Article 5-13. Cooperation
1. Each Party shall notify the other Party of the following determinations, measures and rulings, including to the greatest extent practicable those that are prospective in application:
(a) a determination of origin issued as the result of a verification conducted pursuant to Article 5-07, after the avenues for review and appeal mentioned in Article 5-11 have been exhausted;
(b) a determination of origin that the Party considers to be contrary to a ruling issued by the customs administration of the other Party with respect to the tariff classification or value of a good, or of materials used in the production of a good, or the reasonable allocation of costs where calculating the net cost of a good, that is the subject of a determination of origin;
(c) a measure establishing or significantly modifying an administrative policy that is likely to affect future determinations of origin; and
(d) an advance ruling, or a ruling modifying an advance ruling, pursuant to Article 5-09.
2. The Parties shall cooperate:
(a) in the enforcement of their respective customs-related laws or regulations implementing this Agreement, and under any customs mutual assistance agreement or other customs-related agreement to which they are party;
(b) to the extent practicable and for purposes of facilitating the flow of trade between them, in such customs-related matters as the collection and exchange of statistics regarding the importation and exportation of goods, the harmonization of documentation used in trade, the standardization of data elements, the acceptance of an international data syntax and the exchange of information;
(c) to the extent practicable, in the storage and transmission of customs-related documentation;
(d) to the extent practicable, in the verification of origin of a good, for which purpose the customs administration of the importing Party may request the customs administration of the other Party to carry out determined operations or measures for that purpose in its territory and to issue the respective reports; and
(e) in seeking mechanisms for the detection and prevention of unlawful transhipments of goods from a non-Party.
Article 5.14. Customs Sub-Committee
1. Notwithstanding Article 3-16 (Committee on Trade in Goods), The Customs Sub-Committee shall have the following functions:
(a) endeavour to agree on:
(i) tariff classification and valuation matters relating to determinations of origin,
(ii) equivalent procedures and criteria for the request, approval, modification, revocation and implementation of advance tulings,
(iii) the revisions to the certificate or declaration of origin mentioned in Article 5-02,
(iv) the interpretation, application and uniform administration of Article 3-06 (Temporary Admission of Goods), 3-07 (Duty- Free Entry of Certain Commercial Samples and Printed Advertising Materials) and 3-08 (Goods Re-Entered after Repair or Alteration), Chapter 4 (Rules of Origin), this Chapter and the Uniform Regulations, and
(v) any other customs-related matter arising under this Agreement;
(b) propose to the Committee on Trade in Goods modifications or additions to Chapter 4 (Rules of Origin), this Chapter, the Uniform Regulations and customs-related matters in its sphere of competence; and
(c) examine proposals for administrative or operational modifications in customs-related matters that could affect trade flows between the Parties. 2. Nothing in this Chapter shall be construed to prevent a Party from issuing a determination of origin or an advance ruling or from taking such other action as it considers necessary, pending a resolution of a matter submitted to this Sub-Committee for consideration.
Chapter 6. EMERGENCY ACTION
Article 6-01. Definitions
For the purposes of this Chapter:
Agreement on Safeguards means the Agreement on Safeguards of the WTO Agreement;
competent investigating authority means "competent investigating authority" as defined in Annex 6-01;
contribute importantly means an important cause, but not necessarily the most important cause;
critical circumstances means circumstances where delay would cause damage that would be difficult to repair;
domestic industry means the producers as a whole of the like or directly competitive good operating in the territory of a Party;
emergency action does not include any emergency action pursuant to a proceeding instituted prior to the entry into force of this Agreement;
serious injury, threat of and causal relationship means that the provisions in that regard established in the Agreement on Safeguards will be applied;
surge means a significant increase in imports over the trend for a recent representative base period; and
transition period means the period during which a good is in the process of tariff elimination.
Article 6-02. Bilateral Emergency Actions
1. Subject to paragraphs 2 through 4, and during the transition period only, if a good originating in the territory of a Party, as a result of the reduction or elimination of a duty provided for in this Agreement, is being imported into the territory of the other Party in such increased quantities, in relation to domestic production, and under such conditions that the imports of the good from that Party alone constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party into whose territory the good is being imported may, to the minimum extent necessary to remedy or prevent the injury or threat thereof:
(a) suspend the further reduction of any rate of duty provided for under this Agreement on the good;
(b) increase the rate of duty on the good to a level not to exceed the lesser of
(i) the most-favoured-nation applied rate of duty in effect at the time the action is taken, and
(ii) the most favoured nation applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement.
2. The following conditions and limitations shall apply to a proceeding that may result in emergency action under paragraph 1:
(a) a Party shall, without delay, deliver to the other Party written notice of the institution of a proceeding that could result in emergency action against a good originating in the territory of the other Party;
(b) any such action shall be initiated no later than one calendar year after the date of institution of the proceeding;
(c) no action may be maintained
(i) for a period exceeding one year, or
(ii) beyond the expiration of the transition period, except with the consent of the Party against whose good the action is taken;
(d) no action may be taken by a Party against any particular good originating in the territory of the other Party more than once during the transition period; and
(e) on the termination of the action, the rate of duty shall be the rate that, according to the Party's Schedule to Annex 3-04(3) (Tariff Reduction Programme) for the staged elimination of the tariff, would have been in effect one year after the initiation of the action, and beginning January 1 of the year following the termination of the action, at the option of the Party that has taken the action
(i) the rate of duty shall conform to the applicable rate set out in its Schedule to Annex 3-04(3), or
(ii) the tariff shall be eliminated in equal annual stages ending on the date set out in its Schedule to Annex 3-04(3) (Tariff Reduction Programme).
3. A Party may take a bilateral emergency action after the expiration of the transition period to deal with cases of serious injury, or threat thereof, to a domestic industry arising from the operation of this Agreement only with the consent of the other Party.
4. The Party taking an action under this Article shall provide to the other Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the action. If the Parties are unable to agree on compensation, the Party against whose good the action is taken may take tariff action having trade effects substantially equivalent to the action taken under this Article. The Party taking the tariff action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects.
Article 6-03. Global Emergency Actions
1. Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the Agreement on Safeguards, except those regarding compensation or retaliation and exclusion from an action to the extent that such rights or obligations are inconsistent with this Article. Any Party taking an emergency action under Article XIX of the GATT 1994 and the Agreement on Safeguards shall exclude imports of a good from the other Party from the action unless:
(a) imports from the other Party account for a substantial share of total imports; and
(b) imports from the other Party contribute importantly to the serious injury, or threat thereof, caused by total imports.
2. In determining whether:
(a) imports from the other Party account for a substantial share of total imports, those imports normally shall not be considered to be substantial if that Party is not among the top five suppliers of the good subject to the proceeding, measured in terms of import share during the most recent three-year period; and
(b) imports from the other Party contribute importantly to the serious injury, or threat thereof, the competent investigating authority shall consider such factors as the change in the total import share of the other Party, and the level and change in the level of imports of the other Party. Imports from a Party normally shall not be deemed to contribute importantly to serious injury, or the threat thereof, if the growth rate of such imports during the period in which the injurious surge in imports occurred is appreciably lower than the growth rate of total imports from all sources over the same period.
3. A Party taking such action, from which a good from the other Party is initially excluded pursuant to paragraph 1, shall have the right subsequently to include that good in the action in the event that the competent investigating authority determines that a surge in imports of such good undermines the effectiveness of the action.
4. A Party shall, without delay, deliver written notice to the other Party of the institution of a proceeding that may result in emergency action under paragraph 1 or 3.
5. Neither Party may impose restrictions on a good in an action under paragraph 1 or3:
(a) without delivery of prior written notice to the Commission, and without adequate opportunity for consultation with the other Party, as far in advance of taking the action as practicable; and
(b) that would have the effect of reducing imports of such good from the other Party below the trend of imports of the good over a recent representative base period with allowance for reasonable growth.
6. A Party taking global emergency action pursuant to this Article against goods originating in the other Party shall limit that action solely and exclusively to tariff measures.
7. The measures mentioned in paragraph 6 shall consist of increasing the rate of duty on the originating good to a level not to exceed the lesser of:
(a) the most-favoured-nation applied rate of duty in effect at the time the action is taken; and
(b) the most favoured nation applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement.
8. The Party taking an action pursuant to this Article shall provide to the other Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the action.
9. If the Parties are unable to agree on compensation, the Party against whose good the action is taken may take action having trade effects substantially equivalent to the action taken under paragraph 1 or 3.
Article 6-04. Administration of Emergency Action Proceedings
1. Each Party shall ensure the consistent, impartial and reasonable administration of its laws, regulations, decisions and rulings governing all emergency action proceedings.
2. Each Party shall entrust determinations of serious injury, or threat thereof, in emergency action proceedings to a competent investigating authority, subject to review by judicial or administrative tribunals, to the extent provided by domestic law. Negative injury determinations shall not be subject to modification, except by such review. The competent investigating authority empowered under domestic law to conduct such proceedings shall be provided with the necessary resources to enable it to fulfil its duties.
3. Each Party shall adopt or maintain equitable, timely, transparent and effective procedures for emergency action proceedings, in accordance with the requirements set out in Annex 6-04.
Article 6-05. Dispute Settlement In Emergency Action Matters
Neither Party may request the establishment of an arbitral panel under Article 18-06 (Request for an Arbitral Panel) regarding any emergency action that has simply been proposed.
Part Three. TECHNICAL STANDARDS
Chapter 7. SANITARY AND PHYTOSANITARY MEASURES
Article 7-01. Definitions
For the purposes of this Chapter, the Parties shall use the definitions and terms established:
(a) in the Agreement on the Application of Sanitary and Phytosanitary Measures of the WTO Agreement (Agreement on Sanitary and Phytosanitary Measures);
(b) by the International Office of Epizootics (OIE);
(c) in the International Convention on Phytosanitary Protection; and
(d) by the Codex Alimentarius Commission.
Article 7-02. General Provisions
1. This Chapter applies to the principles, rules and procedures relating to the sanitary and phytosanitary measures which regulate or which may, directly or indirectly, affect trade in agricultural, fish and forest products between the Parties and other trade in plants and animals, their products and byproducts.
2. Through mutual cooperation, the Parties shall facilitate trade in agricultural, fish and forest products that present no sanitary or phytosanitary risks and undertake to prevent the introduction or spread of pests or diseases and to improve plant and animal health and food safety.
3. The competent authorities shall be the authorities with legal responsibility for enforcing compliance with the sanitary and phytosanitary requirements established in this Chapter.
4. The Parties revoke the document mentioned in Annex 7-02.
Article 7-03. Rights of the Parties
The Parties may:
(a) adopt, maintain or apply any sanitary or phytosanitary measure in their territory only to the extent necessary to protect human, animal or plant life or health, in accordance with this Chapter;
(b) apply their sanitary and phytosanitary measures only to the extent necessary to achieve an appropriate level of protection, taking into account technical and economic feasibility; and
(c) verify that plants, animals and plant and animal products for export are subject to strict sanitary and phytosanitary monitoring, certifying compliance with the requirements of the importing Party.
Article 7-04. Obligations of the Parties
1. Sanitary and phytosanitary measures shall not constitute a disguised restriction on trade or create unnecessary obstacles to trade between the Parties.
2. Sanitary and phytosanitary measures shall be based on scientific principles, be maintained only where there are sufficient grounds and be based on an appropriate risk assessment.
3. Where identical or similar conditions exist, a sanitary or phytosanitary measure shall not discriminate arbitrarily or unjustifiably between its goods and similar goods of the other Party or between the goods of the other Party and similar goods of a non-Party.
4. The Parties shall provide the necessary facilities to verify control, inspection and approval procedures and sanitary and phytosanitary programmes.
Article 7-05. International Standards and Harmonization
1. Each Party shall use international standards, guidelines or recommendations as the basis for its sanitary and phytosanitary measures, in order to harmonize them or make them compatible with those of the other Party.
2. Notwithstanding paragraph 1, the Parties may adopt a sanitary or phytosanitary measure that offers alevel of protection different from that which would be achieved by measures based on an international standard, guideline or recommendation, or which is higher, if there is scientific justification.
3. To achieve closer harmonization, the Parties shall follow the guidelines of the competent international organizations: the International Convention on Phytosanitary Protection for plant health; the OIE for animal health; and the standards of the Codex Alimentarius Commission with respect to food safety and tolerance limits.
4. The parties shall also take into consideration the standards and guidelines of other international organizations of which they are members.
5. The Parties shall establish sanitary and phytosanitary harmonization systems for sampling, diagnosis, inspection and certification of animals, plants, their products and byproducts and food safety.
Article 7-06. Equivalence
1. Without reducing the appropriate level of protection, the Parties shall accept to the fullest extent possible, their sanitary and phytosanitary measures as equivalent.
2. Each Party shall accept the sanitary and phytosanitary measures of the other Party as equivalent, even if they differ from its own, providing scientific information is furnished to demonsirate that they achieve the appropriate level of protection of the other Party.
3. To establish equivalencies between sanitary and phytosanitary measures, the Parties shall adopt reasonable procedures to facilitate access to their territory for the purposes of inspection, tests and other pertinent measures.
Article 7-07. Assessment of Risk and Determination of the Appropriate Level of Sanitary or Phytosanitary Protection
1. The Parties shall ensure that their sanitary and phytosanitary measures are based on an adequate assessment, as appropriate to the circumstances, of the risks to human and animal life and health and to the preservation of plant health and shall prevent harmful effects of the inputs used in protection and production, taking into account the guidelines and risk assessment techniques established by the competent international organizations.
2. On assessment of risk and determination of the appropriate level of protection, the Parties shall take account of the existence of specific diseases or pests; recognition of pest- or disease-free areas and areas of low pest or disease prevalence, programmes for eradication or control, the structure and organization of sanitary and phytosanitary services, procedures for protection, surveillance, diagnoses and treatments to ensure the safety of the product.
3. In establishing their appropriate level of protection, the Parties shall take into account the objective of minimizing the negative effects on trade and, with the purpose of achieving consistency in protection levels, shall avoid arbitrary or unjustifiable distinctions that could lead to discrimination or which constitute a disguised restriction on trade between the Parties.
4. Where a Party performs a risk assessment and concludes that the scientific information is insufficient, it may adopt a sanitary or phytosanitary measure on the basis of available information, including information from the competent international organizations as well as from sanitary or phytosanitary measures applied by the other Party. Once the necessary information becomes available, the Party shall conclude the assessment and, when warranted, shall proceed to modify the sanitary or phytosanitary measure.
Article 7-08. Recognition of Pest- or Disease-Free Areas and Areas of Low Pest or Disease Prevalence
1. The Parties shall recognize pest- or disease-free areas and areas of low pest or disease prevalence on the basis of geographic location, ecosystems, epidemiological surveillance and the effectiveness of sanitary or phytosanitary controls in such areas, among the main factors.
2. A Party that declares an area in its territory to be free from a given pest or disease shall demonsirate that condition objectively to the satisfaction of the other Party and give it assurances that the area shall be maintained as such, based on the protection measures adopted by the heads of the sanitary or phytosanitary services.
3. A Party interested in obtaining recognition of an area that is free from a given pest or disease shall make application to the other Party and provide it with the corresponding scientific and technical information.
4. The Party receiving the application for recognition shall decide on it within a period agreed upon in advance with the other Party and may conduct verifications with respect to inspections, tests and other procedures. In the event it refuses the application, it shall give the technical grounds for its decision in writing.
5. The Parties shall agree on specific requirements whose compliance shall permit a good produced in an area of low pest or disease prevalence to be imported, if the appropriate level of protection is provided.
Article 7-09. Control, Inspection and Approval Procedures
Pursuant to this Chapter, the Parties shall apply the provisions of Annex C of the Agreement on Sanitary and Phytosanitary Measures relating to control, inspection and approval procedures, including systems for approving the use of additives or for establishing tolerances for contaminants in foods, beverages or feedstuffs.
Article 7-10. Transparency
Each Party, when proposing the adoption or modification of a sanitary or phytosanitary measure for general application on the central or federal level, shall notify through its competent authorities:
(a) the adoption and modification of such measures and facilitate information on them, in accordance with Annex B of the Agreement on Sanitary and Phytosanitary Measures, and shall make the pertinent adaptations;
(b) changes or modifications in sanitary or phytosanitary measures with a significant effect on trade between the Parties, no less than 60 days prior to the entry into force of the new provision, to permit the other Party to comment. In emergency situations the term shall be waived, in accordance with Annex B of the Agreement on Sanitary and Phytosanitary Measures;
(c) changes in the field of animal health and the appearances of exotic diseases and diseases of List A of the OIE, within 24 hours after detection of the problem;
(d) changes in the field of plant health, such as the appearance of quarantine pests or the spread of pests under official control, within 72 hours after verification; and
(e) findings of epidemiological importance and significant changes in relation to diseases and pests not included in (b) or (c) that could affect trade between the Parties, within a maximum of 10 days.
Article 7-11. Committee on Sanitary and Phytosanitary Measures
1. The Parties establish a Committee on Sanitary and Phytosanitary Measures Committee comprised of representatives of each of them, with responsibilities for sanitary and phytosanitary matters. The Committee shall be established within 30 days after this Agreement comes into force.
2. The Committee shall coordinate and apply the provisions of this Chapter, oversee the fulfilment of its objectives, facilitate consultations or negotiations on specific sanitary and phytosanitary matters and issue the pertinent recommendations.
3. The Committee's functions shall include:
(a) establishing adequate terms and conditions for the coordination and expeditious solution of matters submitted to it;
(b) immediately examining possible discrepancies that may arise in the application of this Chapter;
(c) promoting the facilities needed for the training and specialization of technical staff; and
(d) promoting cooperation and exchanges of technical staff, including cooperation in the development, application and observance of sanitary or phytosanitary measures.
4. The Committee shall establish the following sub-committees, inter alia: animal health, plant health, food safety, fisheries and agricultural chemicals. The members of the sub-committees shall be appointed by the competent authorities in their respective fields.
5. The sub-committees' functions shall include:
(a) preparing terms of reference for activities in their spheres of competence and reporting on their results to the Committee;
(b) establishing specific agreements on matters of interest involving greater technical and operational detail, for presentation to the Committee; and
(c) establishing mechanisms for expeditious exchanges of information in response to consultations by the Parties.
6. The Committee shall convene once a year, unless otherwise agreed, and shall report on the results of its work to the Commission. The sub-committees shall convene at least once a year, or as often as necessary, depending on the requirements of their programme of activities.
Article 7-12. Technical Consultations
1. Nothing in the Chapter shall prevent a Party from consulting the other Party when it has questions about the application or interpretation of its content.