1. Each customs administration shall focus its inspection activities on high-risk shipments of goods and facilitate the clearance, including release, of low-risk goods in administering customs procedures. Additionally, customs administrations shall exchange information related to applied techniques on risk management, ensuring the confidentiality of the information.
2. Each Party shall endeavor to mutually accept the certification given to the economic operator by the customs administration of the exporting Party throughout its supply chain which follows international standards and promotes safer trade in cooperation with governments and international organizations.
3. The Parties shall fully implement the obligation under paragraph 2 within three years following the date of entry into force of this Agreement.

Article 5.10. Publication and Inquiry Points

1. Each customs administration shall publish all customs laws and administrative procedures it applies or enforces.
2. Each customs administration shall designate one or more inquiry points to deal with inquiries from interested persons of either Party on customs matters arising from the implementation of this Agreement, and provide details of such inquiry points to the other customs administration. Information concerning the procedures for making such inquiries shall be accessible to the public.
3. Each customs administration shall endeavor to provide the other customs administration with timely notice of any significant modification to its customs laws or procedures governing the movement of goods and means of transport that is likely to substantially affect the operation of this Chapter.

Article 5.11. Express Consignments

Each customs administration shall adopt or maintain separate and expeditious customs procedures for express shipments while maintaining appropriate customs control and selection. Those procedures shall, under normal circumstances, provide an express clearance of goods after submission of all the necessary customs documents, regardless of their weight or customs value.

Article 5.12. Release of Goods

1. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties.
2. In accordance with paragraph 1, each Party shall ensure that its customs administration or competent authority adopt or maintain procedures that:
(a) provide for the release of goods within a period no longer than that required to ensure compliance with its customs laws and to the extent possible within 48 hours following the goods' arrival;
(b) provide for advance electronic submission and processing of information before physical arrival of goods to enable the release of goods on arrival;
(c) allow goods to be released at the point of arrival without temporary transfer to warehouses or other facilities; and
(d) allow importers to withdraw goods from customs before, and without prejudice to, the final determination by its customs administration of the applicable customs duties, taxes, and fees.
3. A Party may require an importer to provide sufficient guarantee in the form of a surety, a deposit, or other appropriate instrument, covering the ultimate payment of the customs duties, taxes, and fees in connection with the importation of the good.

Section B. CUSTOMS COOPERATION

Article 5.13. Customs Cooperation

1. The Parties shall enhance their cooperation in customs and customs-related matters.
2. The Parties affirm their commitment to the facilitation of the legitimate movement of goods and shall exchange expertise on measures to improve customs techniques and procedures and on computerized systems in accordance with this Agreement.
3. The Parties shall assist each other, in the areas within their competence, in the manner and under the conditions set out in this Chapter to ensure that the customs legislation is correctly applied, in particular by preventing, detecting, and investigating operations in breach of that legislation.
4. The Parties shall commit to:
(a) pursuing the harmonization of documentation used in trade and data elements in accordance with international standards, for purposes of facilitating the flow of trade between them, in customs-related matters regarding the importation, exportation, and transit of goods;
(b) intensifying cooperation between their customs laboratories and scientific departments and working towards the harmonization of customs laboratories methods ;
(c) exchanging customs' experts of the Parties;
(d) jointly organizing training programs on customs-related issues for the officials who participate directly in customs procedures;
(e) developing effective mechanisms for communicating with the trade and business communities;
(f) assisting each other, to the extent possible, in tariff classification, valuation, and determination of origin, for the preferential tariff treatment of imported goods, and other customs matters including non-preferential origin;
(g) promoting strong and efficient intellectual property rights enforcement by customs authorities, regarding imports, exports, re-exports, transit, transshipments, and other customs procedures, and in particular regarding counterfeit goods; and
(h) improving the security, while facilitating trade, of sea-container and other shipments from all locations that are imported into, trans-shipped through, or transiting Korea or Peru. The Parties agree that the objectives of the intensified and broadened cooperation include, but are not limited to:
(i) working together to reinforce the customs-related aspects for securing the logistics chain of international trade; and
(ii) coordinating positions, to the extent possible, in any multilateral fora where issues related to container security may be appropriately raised and discussed.

Article 5.14. Implementation of the Customs Cooperation

1. The implementation of this Section shall be entrusted to the customs administration of the Parties. They shall decide on all practical measures and arrangements necessary for its application, taking into consideration the rules in force in the field of data protection.
2. The Parties shall consult each other on the detailed rules of implementation which are adopted in accordance with this Chapter.
3. The Parties shall exchange the contact points for the exchange of information.

Article 5.15. Mutual Administrative Assistance on Customs Matters

1. Upon request of the applicant authority, the requested authority shall provide it with all relevant information which may enable it to ensure compliance with customs legislation, including information on non-preferential origin, tariff classification, valuation, determination of origin, and operations noted or planned which are or might be in breach of such legislation.
2. Upon request of the applicant authority, the requested authority shall inform it whether goods exported from the territory of one of the Parties have been properly imported into the territory of the other Party, specifying, where appropriate, the customs procedure applied to the goods.
3. Upon request of the applicant authority, the requested authority shall, within the framework of its laws, take the necessary steps to ensure special surveillance of:
(a) natural or legal persons in respect of whom there are reasonable grounds for believing that they are or have been in breach of customs legislation;
(b) places where goods are stored in a way that gives grounds for suspecting that they are intended to be used in operations in breach of customs legislation;
(c) movements of goods notified as possibly giving rise to substantial breaches of customs legislation; and
(d) means of transport for which there are reasonable grounds for believing that they have been, are, or may be used in operations in breach of customs legislation.
4. The Parties shall provide each other, on their own initiative and in accordance with their laws, rules, and other legal instruments, with assistance if they consider that to be necessary for the correct application of customs legislation, particularly when they obtain information on:
(a) operations which are or appear to be in breach of such legislation and which may be of interest to other Party;
(b) new means or methods employed in carrying out such operations;
(c) goods known to be subject to substantial breaches of customs legislation;
(d) natural or legal persons in respect of whom there are reasonable grounds for believing that they are or have been in substantial breach of customs legislation; or
(e) means of transport for which there are reasonable grounds for believing that they have been, are, or may be used in operations in substantial breach of customs legislation.

Article 5.16. Form and Substance of Requests for Assistance

1. Requests for assistance in accordance with this Chapter shall be made in writing. They shall be accompanied by the documents necessary to enable compliance with the request. In urgent situations, oral requests may be accepted, but shall be confirmed in writing immediately.
2. Requests for assistance in accordance with this Chapter shall include the following information:
(a) the applicant authority;
(b) the measure requested;
(c) the object of and the reason for the request;
(d) the legal or regulatory provisions and other legal elements involved;
(e) indications as exact and comprehensive as possible on the natural or legal persons who are the target of the investigations; and
(f) a summary of the relevant facts and of the inquiries already carried out.
3. Requests shall be submitted in English. Where the documents are made in a language other than English, the requested authority may require the applicant authority to submit a translation of the documents into English.
4. If a request does not meet the formal requirements set out above, its correction or completion may be requested.

Article 5.17. Execution of Requests

ArticleFREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF KOREA AND THE REPUBLIC OF PERU PREAMBLE The Republic of Peru (hereinafter referred to as "Peru") and the Republic of Korea (hereinafter referred to as "Korea"), collectively referred to as "the Parties", resolved to:
STRENGTHEN the special bonds of friendship and cooperation between them;
PROMOTE broad-based economic development in order to reduce poverty and generate opportunities for sustainable economic growth;
ENSURE a predictable legal framework for trade, business, and investment;
CREATE new employment opportunities and effectively improve labor conditions and living standards in their respective territories;
AVOID distortions to their trade;
PROMOTE transparency and prevent and combat corruption, including bribery, and human rights violations-related rackets in international trade and investment;
IMPLEMENT this Agreement in a manner consistent with environmental protection and conservation and basic human and fundamental rights protection and promote sustainable development;
REAFFIRM their consent to strengthen and enhance the multilateral trading system as reflected by the World Trade Organization; and
REAFFIRM their commitment to the "Bogor Goals" of free and open trade and investment of the Asia-Pacific Economic Cooperation;
HAVE AGREED as follows:BodyInitial Provisions and DefinitionsONEEstablishment of a Free Trade Area1.1The Parties to this Agreement, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish a Free Trade Area.Relation to other Agreements1.21. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement.
2. In the event of any inconsistency between this Agreement and other agreements to which both Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution, taking into consideration general principles of international law.
3. If any provision of the WTO Agreement that the Parties have incorporated into this Agreement is amended and accepted by the Parties at the WTO, such amendment shall be deemed incorporated automatically into this Agreement.Extent of Obligations1.3Each Party shall ensure within its territory the observance of all obligations and commitments under this Agreement by its respective central, regional, and local levels of government.General Definitions1.4For purposes of this Agreement, unless otherwise specified:
AD Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement;
Agriculture Agreement means the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement;
CBD means the Convention on Biological Diversity, concluded at Rio de Janeiro on June 5, 1992;
central level of government means:
(a) for Peru, the national level of government; and
(b) for Korea, the central level of government; covered investment means, with respect to a Party, an investment in its territory of an investor of the other Party existing on the date of entry into force of this Agreement, as well as investments established, acquired, or expanded thereafter; customs authority means the authority that is responsible under the law of a Party for the administration and enforcement of customs laws and regulations;
customs duty includes any duty or a charge of any kind imposed on, or in connection with, the importation of goods, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994;
(b) anti-dumping, countervailing, or safeguard duty that is applied in accordance with Article VI of GATT 1994, the AD Agreement, the SCM Agreement, Article XIX of GATT 1994, the Safeguards Agreement, and Article 5 of the Agriculture Agreement; or
(c) fee or other charge in connection with importation commensurate with the cost of services rendered; Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement;
days means calendar days;
enterprise means any entity constituted or organized under applicable law, whether or not for profit, and whether privately or governmentally owned or controlled, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association;
enterprise of a Party means an enterprise constituted or organized under a Party's law;
existing means in effect on the date of entry into force of this Agreement;
GATS means the General Agreement on Trade in Services, contained in Annex 1B to the WTO Agreement; GATT 1994 means the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement;
goods of a Party means domestic products as these are understood in GATT 1994 or such goods as the Parties may agree and includes originating goods of that Party;
Harmonized System (hereinafter referred to as "HS") means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, and Chapter Notes;
heading means the first four digits in the tariff classification number under the HS;
IMF means the International Monetary Fund;
Joint Commission means the Joint Commission established under Article 22.1 (Joint Commission);
local level of government means:
(a) for Peru, the provincial and local municipalities; and
(b) for Korea, a local government as defined in the Local Autonomy Act;
measure includes any law, regulation, procedure, requirement, or practice;
national means:
(a) for Peru, a natural person who has the nationality of Peru by birth, naturalization, or option in accordance with Articles 52 and 53 of the Political Constitution of Peru (Constitución Política del Perú) and other relevant domestic legislation, or a permanent resident in Peru; and
(b) for Korea, a Korean national within the meaning of the Nationality Act; originating means qualifying in accordance with the rules of origin established under Chapter Three (Rules of Origin);
person means a natural person or an enterprise; person of a Party means a national or an enterprise of a Party;
regional level of government means:
(a) for Peru, regional government in accordance with the Political Constitution of Peru (Constitución Política del Perú) and other applicable legislation; and
(b) for Korea, "regional level of government" is not applicable since a regional government does not exist in Korea;
Safeguards Agreement means the Agreement on Safeguards, contained in Annex 1A to the WTO Agreement;
SCM Agreement means the Agreement on Subsides and Countervailing Measures, contained in Annex 1A to the WTO Agreement;
subheading means the first six digits in the tariff classification number under the HS;
territory (1) means:
(a) for Peru, the mainland territory, the islands, the maritime zones, and the air space above them over which Peru exercises sovereignty or sovereign rights and jurisdiction in accordance with its domestic law and international law; and
(b) for Korea, the land, maritime, and air space over which Korea exercises sovereignty, and those maritime areas, including the seabed and subsoil adjacent to and beyond the outer limit of the territorial seas over which it may exercise sovereign rights or jurisdiction in accordance with its domestic law and international law;
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights, contained in Annex 1C to the WTO Agreement;
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on April 15, 1994. (1) For greater certainty, the definition of and references to "territory" contained in this Agreement apply exclusively for purposes of determining the geographical scope of application of this Agreement.National Treatment and Market Access for GoodsTWOScope of Application2.1Except as otherwise provided in this Agreement, this Chapter shall apply to trade in goods of a Party.NATIONAL TREATMENTANational Treatment2.21. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretative notes, and to this end Article III of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
2. Paragraph 1 shall not apply to the measures set out in Annex 2A.ELIMINATION OF CUSTOMS DUTIESBElimination of Customs Duties2.31. Except as otherwise provided in this Agreement, neither Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good.
2. Except as otherwise provided in this Agreement, each Party shall eliminate its customs duties on originating goods in accordance with its Schedule set out in Annex 2B.
3. The Parties may deny preferential tariff treatment under this Agreement for used goods. For purposes of this paragraph, used goods includes those identified as such in headings or sub-headings of the HS and those reconstructed, repaired, recovered, remanufactured, or any other similar goods that, after having been used, have been subject to a process to restore their original characteristics or specifications, or to restore the functionality they had when they were new. (1)
4. Upon request of a Party, the Parties shall consult to consider accelerating the elimination of customs duties set out in their Schedules set out in Annex 2B.
5. An agreement between the Parties to accelerate the elimination of a customs duty on a good, shall supersede any duty rate or staging category determined pursuant to their 1 This paragraph shall not apply to used vehicles that are classified in heading 8703 of the HS, provided that they do not fall within the scope of the measures referred to in Annex 2A. Accordingly, each Party shall provide preferential tariff treatment under this Agreement for such used vehicles. Schedules set out in Annex 2B for such good, when approved by the Parties in accordance with Article 22.1 (Joint Commission) and their applicable legal procedures.
6. For greater certainty, a Party may:
(a) raise a customs duty to the level established in its Schedule set out in Annex 2B following a unilateral reduction for the respective year; or
(b) maintain or increase a customs duty as authorized by the Dispute Settlement Body of the WTO or in accordance with Chapter Twenty-Three (Dispute Settlement).(1) This paragraph shall not apply to used vehicles that are classified in heading 8703 of the HS, provided that they do not fall within the scope of the measures referred to in Annex 2A. Accordingly, each Party shall provide preferential tariff treatment under this Agreement for such used vehicles.SPECIAL REGIMESCWaiver of Customs Duties2.41. Neither Party shall adopt any new waiver of customs duties, or expand with respect to existing recipients or extend to any new recipient the application of an existing waiver of customs duties, where the waiver is conditioned, explicitly or implicitly, on the fulfillment of a performance requirement.
2. Neither Party shall, explicitly or implicitly, condition on the fulfillment of a performance requirement the continuation of any existing waiver of customs duties.Temporary Admission of Goods2.51. Each Party shall grant duty-free temporary admission for the following goods, regardless of their origin:
(a) professional equipment, including equipment for the press or television, software, and broadcasting and cinematographic equipment, necessary for carrying out the business activity, trade, or profession of a person who qualifies for temporary entry in accordance with the laws of the importing Party;
(b) goods intended for display or demonstration;
(c) commercial samples and advertising films and recordings; and
(d) goods admitted for sports purposes.
2. Each Party, upon request of the person concerned and for reasons its customs authority considers valid, shall extend the time limit for temporary admission beyond the period initially fixed.
3. Neither Party shall condition the duty-free temporary admission of a good referred to in paragraph 1, other than to require that the good:
(a) be used solely by or under the personal supervision of a national or resident of the other Party in the exercise of business activity, trade, profession or sport activity of that person;
(b) not be sold or leased while in its territory;
(c) be accompanied by a security in an amount no greater than 110 percent of the charges that would otherwise be owed on entry or final importation, releasable on exportation of the good;
(d) be capable of identification when exported;
(e) be exported on the departure of the person referred to in subparagraph (a), or within such other period related to the purpose of the temporary admission as the Party may establish, or within one year, unless extended;
(f) be admitted in no greater quantity than is reasonable for its intended use; and
(g) be otherwise admissible into the Party's territory under its law.
4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the good plus any other charges or penalties provided for under its law.
5. Each Party shall adopt or maintain procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, such procedures shall provide that when such a good accompanies a national or resident of the other Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national or resident.
6. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than that through which it was admitted.
7. Each Party shall provide that its customs authority or other competent authority relieves the importer or another person responsible for a good admitted under this Article of any liability for failure to export the good on presentation of satisfactory proof to the customs authority of the importing Party that the good has been destroyed within the original period fixed for temporary admission or any lawful extension.
8. Neither Party shall:
(a) prevent a vehicle or container used in international traffic that enters its territory from the territory of the other Party from exiting its territory on any route that is reasonably related to the economic and prompt departure of such vehicle or container;
(b) require any security or impose any penalty or charge solely by reason of any difference between the port of entry and the port of departure of a vehicle or container;
(c) condition the release of any obligation, including any security, that it imposes in respect of the entry of a vehicle or container into its territory on its exit through any particular port of departure; and
(d) require that the vehicle or carrier bringing a container from the territory of the other Party into its territory be the same vehicle or carrier that takes the container to the territory of the other Party.
9. For purposes of paragraph 8, vehicle means a truck, a truck tractor, a tractor, a trailer unit or trailer, a locomotive, or a railway car or other railroad equipment.Goods Re-entered after Repair or Alteration2.61. Neither Party shall apply a customs duty to a good, regardless of its origin, that reenters its territory after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in the territory of the Party from which the good was exported for repair or alteration.
2. Neither Party shall apply a customs duty to a good, regardless of its origin, admitted temporarily from the territory of the other Party for repair or alteration.
3. For purposes of this Article, repair or alteration does not include an operation or process that:
(a) destroys a good's essential characteristics or creates a new or commercially different good; or
(b) transforms an unfinished good into a finished good.Duty-free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials2.7Each Party shall grant duty-free entry to commercial samples of negligible value, and to printed advertising materials, imported from the territory of the other Party, regardless of their origin, but may require that:
(a) such samples be imported solely for the solicitation of orders for goods, or services provided from the territory, of the other Party or a non-Party; or
(b) such materials be imported in packets that each contain no more than one copy of each such material and that neither such materials nor packets form part of a larger consignment.Import and Export Restrictions2.81. Except as otherwise provided in this Agreement, neither Party shall adopt or maintain any non-tariff measures that prohibit or restrict the importation of any good of the other Party or the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994 and its interpretative notes, and to this end Article XI of GATT 1994 and its interpretive notes are incorporated into and made part of this Agreement, mutatis mutandis.
2. The Parties understand that the GATT 1994 rights and obligations incorporated by paragraph 1 prohibit, in any circumstances in which any other form of restriction is prohibited, a Party from adopting or maintaining: (a) export and import price requirements, except as permitted in enforcement of countervailing and anti-dumping duty orders and undertakings;
(b) import licensing conditioned on the fulfillment of a performance requirement; or
(c) voluntary export restraints inconsistent with Article VI of GATT 1994, as implemented under Article 18 of the SCM Agreement and Article 8.1 of the AD Agreement.
3. Paragraphs 1 and 2 shall not apply to the measures set out in Annex 2A.
4. Neither Party shall, as a condition for engaging in importation or for the importation of a good, require a person of the other Party to establish or maintain a contractual or other relationship with a distributor in its territory.
5. Nothing in paragraph 4 prevents a Party from requiring the designation of an agent for purposes of facilitating communications between regulatory authorities of the Party and a person of the other Party.
6. For purposes of paragraph 4: distributor means a person of a Party who is responsible for the commercial distribution, agency, concession, or representation in the territory of that Party of goods of the other Party.Import Licensing2.91. Neither Party shall adopt or maintain a measure that is inconsistent with the Import Licensing Agreement and to this end the Import Licensing Agreement is incorporated into and made part of this Agreement, mutatis mutandis.
2. (a) Promptly after the entry into force of this Agreement, each Party shall notify the other Party of its existing import licensing procedures, if any. The notification shall:
(i) include the information specified in Article 5 of the Import Licensing Agreement; and
(ii) be without prejudice as to whether the import licensing procedure is consistent with this Agreement.
(b) Before applying any new or modified import licensing procedure, a Party shall publish the new procedure or modification on an official government website or in a single official journal. The Party shall do so at least 20 days before the new procedure or modification takes effect. (2)
3. Neither Party shall apply an import licensing procedure to a good of the other Party unless the Party has met the requirements of paragraph 2 with respect to that procedure.(2) This subparagraph shall not apply to a law or regulation that takes effect less than 20 days after it is published.Administrative Fees and Formalities2.101. Each Party shall ensure that all fees and charges of whatever character imposed on or in connection with the importation or exportation of goods are consistent with Article VIII:1 of GATT 1994 and its interpretive notes. To this end, Article VIII:1 of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
2. Neither Party shall require consular transactions, including related fees and charges, in connection with the importation of any good of the other Party.
3. Each Party shall make available and maintain through the Internet a current list of the fees and charges it imposes in connection with importation or exportation.Export Taxes2.11Neither Party shall adopt or maintain any duty, tax, or other charge on the export of any good to the territory of the other Party, unless the duty, tax, or charge is also adopted or maintained on the good when destined for domestic consumption.State Trading Enterprises2.12The rights and obligations of the Parties with respect to state trading enterprises shall be governed by Article XVII of GATT 1994, its interpretative notes, and the Understanding on the Interpretation of Article XVII of GATT 1994, which are incorporated into and made part of this Agreement, mutatis mutandis. 2 This subparagraph shall not apply to a law or regulation that takes effect less than 20 days after it is published.Customs Valuation2.131. The Customs Valuation Agreement and any successor Agreement shall govern the customs valuation rules applied by the Parties to their trade. To this end, the Customs Valuation Agreement and any successor Agreement, as well as the WTO Decisions of Committee on Customs Valuation, are incorporated into and made part of this Agreement, mutatis mutandis.
2. The custom laws of the Parties shall comply with Article VII of GATT 1994 and the Customs Valuation Agreement.OTHER MEASURESDAgricultural Safeguard Measures2.141. Notwithstanding Article 2.3, a Party may apply a measure in the form of a higher import duty on an originating agricultural good listed in that Party's Schedule set out in Annex 2C, consistent with this Article if the aggregate volume of imports of that good in any year exceeds a trigger level as set out in its Schedule set out in Annex 2C.
2. The higher import duty under paragraph 1 shall not exceed the lesser of:
(a) the prevailing most-favored-nation (MFN) applied rate;
(b) the most-favored-nation (MFN) applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement;
(c) the base rate set out in its Schedule set out in Annex 2B; or
(d) the duty set out in its Schedule set out in Annex 2C.
3. Neither Party shall apply or maintain an agricultural safeguard measure under this Article and at the same time apply or maintain, with respect to the same good:
(a) a bilateral safeguard measure under Chapter Eight (Trade Remedies);
(b) a measure under Article XIX of GATT 1994 and the Safeguards Agreement; or
(c) a special safeguard measure under Article 5 of the Agriculture Agreement.
4. A Party shall implement any agricultural safeguard measure in a transparent manner. Within 60 days after imposing an agricultural safeguard measure, the Party applying the measure shall notify the other Party in writing and provide the other Party with relevant data concerning the measure. Upon written request of the exporting Party, the Parties shall consult regarding application of the measure.
5. The Committee on Trade in Goods established under Article 2.17 may review and discuss the implementation and operation of this Article.
6. Neither Party shall apply or maintain an agricultural safeguard measure on an originating agricultural good if the period specified in the agricultural safeguard provisions of the Party's Schedule set out in Annex 2C has expired.Agricultural Export Subsidies2.15Neither Party shall introduce or reintroduce an export subsidy on an agricultural good destined for the territory of the other Party. (3) (3) Korea confirms that no subsidized agricultural goods is or will be exported to Peru.Price Band System2.16Peru may maintain its price band system established in its Supreme Decree N° 115-2001-EF and its amendments, with respect to the goods subject to the application of the system and listed in Annex 2D.INSTITUTIONAL PROVISIONSFCommittee on Trade In Goods2.171. The Parties hereby establish a Committee on Trade in Goods comprising officials of each Party. The meetings of the Committee and any ad-hoc working group shall be coordinated by the Ministry of Foreign Affairs and Trade of Korea and the Ministry of Foreign Trade and Tourism of Peru, or their respective successors.
2. The Committee shall meet upon request of a Party or the Joint Commission to consider matters arising under this Chapter, Chapter Three (Rules of Origin), Four (Origin Procedures) or Five (Customs Administration and Trade Facilitation).
3. The Committee's functions shall include, inter alia:
(a) promoting trade in goods between the Parties, including through consultations on accelerating, or broadening the scope of, tariff elimination under this Agreement and other issues as appropriate;
(b) addressing barriers to trade in goods between the Parties, especially those related to the application of non-tariff measures, and, if appropriate, referring such matters to the Joint Commission for its consideration;
(c) reviewing the future amendments to the HS to ensure that each Party's obligations under this Agreement are not altered, and consulting to resolve any conflicts between:
(i) subsequent amendments to HS 2007 and Annex 2B; or
(ii) Annex 2B and national nomenclatures; 
(d) consulting on and endeavoring to resolve any difference that may arise between the Parties on matters related to the classification of goods under the HS;
(e) consulting on matters related to this Chapter in coordination with other committees, working groups or any other bodies established under this Agreement; and
(f) establishing ad-hoc working groups with specific commands.
4. The Committee shall meet at least once a year unless otherwise agreed by the Parties. When special circumstances arise, the Committee shall meet at any time upon request of a Party.
5. The Parties hereby establish an ad-hoc Working Group on Trade in Agricultural and Fishery Goods. In order to solve any obstacle to the trade of agricultural and fishery goods between the Parties, the ad-hoc Working Group shall meet upon request of a Party. The ad-hoc Working Group shall report to the Committee on Trade in Goods.(3) Korea confirms that no subsidized agricultural goods is or will be exported to Peru.DEFINITIONSDDefinitions2.18For purposes of this Chapter:
advertising films and recordings means recorded visual media or audio materials, consisting essentially of images and/or sound, showing the nature or operation of goods or services offered for sale or lease by a person established or resident in the territory of a Party, provided that such materials are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public;
agricultural goods means those goods referred to in Article 2 of the Agriculture Agreement;
commercial samples of negligible value means commercial samples having a value, individually or in the aggregate as shipped, of not more than the amount specified in a Party's laws, regulations, or procedures governing temporary admission, or so marked, torn, perforated, or otherwise treated that they are unsuitable for sale or use except as commercial samples;
consular transactions means requirements that goods of a Party intended for export to the territory of the other Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for purposes of obtaining consular invoices or consular visas for commercial invoices, certificates of origin, manifests, shippers' export declarations, or any other customs documentation required on or in connection with importation;
consumed means:
(a) actually consumed; or
(b) further processed or manufactured so as to result in a substantial change in the value, form, or use of the good or in the production of another good;
duty-free means free of customs duty;
export subsidies shall have the meaning assigned to that term in Article 1(e) of the Agriculture Agreement, including any amendment of that Article;
goods intended for display or demonstration includes their component parts, ancillary apparatus, and accessories;
goods temporarily admitted for sports purposes means sports requisites for use in sports contests, demonstrations, or training in the territory of the Party into whose territory such goods are admitted;
import licensing means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party;
Import Licensing Agreement means the Agreement on Import Licensing Procedures, contained in Annex 1A to the WTO Agreement;
performance requirement means a requirement that:
(a) a given level or percentage of goods or services be exported;
(b) domestic goods or services of the Party granting a waiver of customs duties or an import license be substituted for imported goods;
(c) a person benefiting from a waiver of customs duties or an import license purchase other goods or services in the territory of the Party granting the waiver of customs duties or the import license, or accord a preference to domestically produced goods;
(d) a person benefiting from a waiver of customs duties or an import license produce goods or supply services, in the territory of the Party granting the waiver of customs duties or the import license, with a given level or percentage of domestic content; or
(e) relates in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows; but does not include a requirement that an imported good be:
(f) subsequently exported;
(g) used as a material in the production of another good that is subsequently exported;
(h) substituted by an identical or similar good used as a material in the production of another good that is subsequently exported; or
(i) substituted by an identical or similar good that is subsequently exported; and printed advertising materials means those goods classified in Chapter 49 of the HS, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials, and posters, that are used to promote, publicize, or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge.Rules of OriginTHREEOriginating Goods3.11. Except as otherwise provided in this Chapter, a good shall be treated as originating in a Party where the good is:
(a) wholly obtained or produced entirely in the territory of one or both of the Parties;
(b) produced entirely in the territory of one or both of the Parties, exclusively from originating materials under this Chapter; or
(c) produced entirely in the territory of one or both of the Parties using non-originating materials, satisfying the requirements under Annex 3A.
2. Additionally, the good shall satisfy all the other applicable requirements of this Chapter.Wholly Obtained or Produced Goods3.2For purposes of Article 3.1.1(a), the following goods are wholly obtained or produced entirely in the territory of one or both of the Parties:
(a) live animals born and raised in the territory of Korea or Peru;
(b) goods obtained from live animals born and raised in the territory of Korea or Peru;
(c) goods obtained by hunting, trapping, fishing, or aquaculture in the territory of Korea or Peru; (1)
(d) goods of sea-fishing and other goods taken from the sea outside the territory of a Party by vessels registered or recorded with a Party and flying its flag;
(e) goods produced on board factory ships, exclusively from the goods referred to in subparagraph (d), provided that such factory ships are registered or recorded with a Party and fly its flag;
(f) plants and plant products grown and harvested, picked, or gathered in the territory of Korea or Peru;
(g) mineral goods and other naturally occurring substances extracted from the soil, waters, seabed, or beneath the seabed of Korea or Peru;
(h) goods taken or extracted by a Party or a person of a Party from the seabed or beneath the seabed outside the territory of a Party, provided that the Party has rights to exploit them;
(i) waste and scrap derived from:
(i) manufacturing operations conducted in the territory of Korea or Peru; or
(ii) used goods collected in the territory of Korea or Peru, provided that such waste and scrap is fit only for the recovery of raw materials; and
(j) goods produced exclusively from goods specified in subparagraphs (a) through (i).(1) Notwithstanding this subparagraph, goods of sea-fishing and other goods taken from the sea within the territories of the Parties by vessels registered or recorded with a non-Party and flying its flag shall not be regarded as wholly obtained or produced entirely in the territory of one or both of the Parties under this Article.Regional Value Content (rvc)3.31. The regional value content of a good shall be calculated on the basis of one of the following methods:
(a) Method Based on Value of Non-Originating Materials (Build-down Method)
           FOB – VNM 
RVC = ------------------- x 100               
                FOB
(b) Method Based on Value of Originating Materials (Build-up Method)
               VOM
RVC=--------------------x 100
              FOB
where,
RVC is the regional value content, expressed as a percentage;
FOB is the free on board value of the good;
VNM is the value of the non-originating materials; and
VOM is the value of the originating materials.
2. The value of the non-originating materials shall be:
(a) in the case of a material imported directly by the producer of a good, the CIF value at the time of importation of the material;
(b) in the case of a material acquired by the producer in the territory where the good is produced, the transaction value, without considering the costs of freight, insurance, packing, and the other costs incurred in the transportation of the material from the warehouse of the supplier to the place where the producer is; or
(c) in the case of a self-produced material or where the relationship between the producer of the good and the seller of the material influences the price actually paid or payable for the material, the sum of all costs incurred in the production of the material, including general expenses. Additionally, it will be possible to add an amount for profit equivalent to the profit added in the normal course of trade.
3. The values referred to in this Article shall be determined in accordance with the Customs Valuation Agreement.Intermediate Materials3.41. When an originating good is used in the subsequent production of another good, no account shall be taken of the non-originating materials contained in the originating good for purposes of determining the originating status of the subsequently produced good.
2. When a non-originating good is used in the subsequent production of another good:
(a) for purposes of calculating the value of the non-originating materials of the subsequently produced good, an account shall be taken only of the non-originating materials contained in the non-originating good; and
(b) for purposes of calculating the value of the originating materials of the subsequently produced good, an account shall be taken of the originating materials contained in the non-originating good.Non-qualifying Operations3.51. The following operations shall be considered to be non-qualifying operations to confer the status of originating goods, whether or not the requirements under this Chapter are satisfied:
(a) operations to ensure the preservation of goods in good condition during transport and storage;
(b) changes of packing or breaking-up or assembly of packages;
(c) washing, cleaning, removal of dust, oxide, oil, paint, or other coverings;
(d) ironing or pressing of textiles;
(e) simple painting and polishing operations;
(f) husking, partial or total bleaching, polishing, and glazing of cereals and rice;
(g) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards, and all other simple packing operations;
(h) simple mixing of products, whether or not of different kinds;
(i) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts; (j) slaughter of animals; or
(k) a combination of two or more operations specified in subparagraphs (a) through (j).
2. All operations carried out in a Party on a given good shall be considered together when determining whether the operations undergone by that good are to be regarded as non-qualifying within the meaning of paragraph 1.
3. For purposes of this Article:
(a) simple means activities which need neither special skills nor machines, apparatus or equipment especially produced or installed for carrying out the activity;
(b) simple mixing means activities which need neither special skills nor machines, apparatus, or equipment especially produced or installed for carrying out the activity but does not include chemical reaction; and
(c) chemical reaction means a process (including a biochemical process) which results in a molecule with a new structure by breaking intramolecular bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.Accumulation3.61. Originating goods or materials from the territory of a Party, incorporated into a good in the territory of the other Party, shall be considered to be originating in the territory of the other Party.
2. Production carried out by a producer in the territory of a Party may be accumulated with the production of one or more producers in the territory of that Party or the other Party, in such way that the production of the materials incorporated into the good shall be considered as carried out by that producer, provided that the good satisfies the requirements established in Article 3.1 and all other applicable requirements in this Chapter.De Minimis3.71. A good that does not undergo a change in tariff classification in accordance with Annex 3A shall nonetheless be considered to be originating if the value of all non-originating materials that have been used in its production and do not undergo the applicable change in tariff classification does not exceed 10 percent of the value of the good, determined in accordance with Article 3.3 if:
(a) the value of such non-originating materials is included in the value of non-originating materials for any applicable regional value content requirement; and
(b) the good satisfies all other applicable requirements in this Chapter.
2. Paragraph 1 shall not apply to goods classified in Chapters 1 through 14 and in Chapters 50 through 63 of the HS. A good classified in Chapters 50 through 63 of the HS, produced in the territory of a Party, shall be considered an originating good if the total weight of all non-originating fibers or yarns used in the production of the component that determines the tariff classification of that good, that do not undergo the applicable change in tariff classification, does not exceed 10 percent of the weight of the good.Fungible Goods or Materials3.81. In determining whether a good or material is originating for purposes of granting preferential tariff treatment, any fungible goods or materials shall be distinguished by:
(a) physically separating each fungible good or material; or
(b) using any inventory management method, such as averaging, last-in-first-out (LIFO) or first-in-first-out (FIFO), recognized in the generally accepted accounting principles of a Party in which the production is performed or otherwise accepted by the Party in which the production is performed.
2. The inventory management method selected under paragraph 1 for a particular fungible good or material shall continue to be used for that good or material throughout the fiscal year of the person that selected the inventory management method.Sets3.9A set, as defined in General Rule 3 of the HS, shall be regarded as originating when all the components of the set are originating. Nevertheless, when a set is composed of originating and non-originating goods, the set as a whole shall be regarded as originating, provided that the value of the non-originating goods does not exceed 15 percent of the total value of the set, determined in accordance with Article 3.3.Accessories, Spare Parts, and Tools3.10The origin of the accessories, spare parts, or tools delivered with a good at the time of importation:
(a) shall be disregarded if the good is subject to a change in tariff classification requirement; and
(b) shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good, if the good is subject to a regional value content requirement, provided that:
(a) the accessories, spare parts, or tools are not invoiced separately from the good, regardless of whether they appear specified or separately identified in the invoice itself; and
(b) the quantities and value of the accessories, spare parts, or tools are customary for the good.Packaging Materials and Containers for Retail Sale3.111. Where packaging materials and containers are classified with a good, the origin of the packaging materials and containers in which the good is packaged for retail sale, shall be disregarded in determining the origin of the good, provided that:
(a) the good is wholly obtained or produced entirely in the territory of one or both of the Parties as set out in Article 3.1.1(a);
(b) the good is produced exclusively from originating materials, as set out in Article 3.1.1(b); or
(c) the good is subject to a change in tariff classification requirement set out in Annex 3A. 2. Where a good is subject to a regional value content requirement, the value of the packaging materials and containers used for retail sale shall be taken into account when determining the origin of the good.Packing Materials and Containers for Shipment3.12Packing materials and containers used to protect a good during its transportation shall not be taken into account when determining the origin of the good.Indirect Materials3.131. For purposes of determining whether a good is originating, the origin of the indirect materials defined in paragraph 2 shall not be taken into account.
2. Indirect materials means articles used in the production of a good which are neither physically incorporated into it, nor form part of it, including:
(a) fuel, energy, catalysts, and solvents;
(b) equipment, devices, and supplies used for testing or inspecting the goods; (c) gloves, glasses, footwear, clothing, safety equipment, and supplies;
(d) tools, dies, and molds;
(e) spare parts and materials used in the maintenance of equipment and buildings;
(f) lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings; and
(g) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.Direct Transport3.141. In order for originating goods to maintain their originating status, the goods shall be transported directly between the Parties.
2. Notwithstanding paragraph 1, the following shall be considered to be transported directly from the exporting Party to the importing Party:
(a) goods that are transported without passing through the territory of a non-Party; and
(b) goods whose transport involves transit through one or more non-Parties, with or without trans-shipment or temporary storage in such non-Parties, under control of the customs authority, provided that the goods do not:
(i) enter into trade or commerce there; and
(ii) undergo any operation there other than unloading and reloading, repacking, or any operation required to keep them in good condition.
3. Compliance with paragraphs 1 and 2 shall be demonstrated by presenting the following documentation to the customs authority of the importing Party:
(a) in the case of transit or trans-shipment, the transportation documents, such as the airway bill, the bill of lading, or the multimodal or combined transportation document, that certify the transport from the country of origin to the importing country, as the case may be; and
(b) in the case of storage, the transportation documents, such as the airway bill, the bill of lading, or the multimodal or combined transportation document, that certify the transport from the country of origin to the importing country, as the case may be, as well as the documents issued by the customs authority or other competent authority that authorized this operation in accordance with the domestic legislation of the non-Party.Principle of Territoriality3.151. The conditions for acquiring originating status set out in Articles 3.1 through 3.14 must be fulfilled without interruption in the territory of one or both of the Parties.
2. Notwithstanding paragraph 1, an originating good exported from a Party to a non-Party shall when returned be considered to be non-originating unless it can be demonstrated to the satisfaction of the customs authorities in accordance with laws and regulations of the importing Party concerned that the returning good:
(a) is the same as that exported; and
(b) has not undergone any operation beyond that necessary to preserve it in good condition while being exported.
3. Notwithstanding paragraphs 1 and 2, goods listed in Annex 3B shall be considered to be originating in accordance with Annex 3B, even if such goods have undergone operations and processes outside the territories of the Parties.Definitions3.16For purposes of this Chapter:
aquaculture means the farming of aquatic organisms, including fish, mollusks, crustaceans, other aquatic invertebrates, and aquatic plants, from seedstock such as eggs, fry, fingerlings, and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding, protection from predators, etc.;
CIF means the value of the good in the country of origin inclusive of the cost of insurance and freight up to the port or place of entry in the country of importation;
competent authority means:
(a) for Korea, the Ministry of Strategy and Finance, or its successor; and
(b) for Peru, the Ministry of Foreign Trade and Tourism, or its successor;
exporter means a person located in the territory of a Party from where a good is exported by such a person; FOB means the value of the good free on board, inclusive of the cost of transportation to the port or site of final shipment abroad, regardless of the mode of transportation;
fungible goods or materials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical;
generally accepted accounting principles means recognized consensus or substantial authoritative support given in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information and the preparation of financial statements. Generally accepted accounting principles may encompass broad guidelines for general application, as well as detailed standards, practices, and procedures; good means any merchandise, product, article, or material;
importer means a person located in the territory of a Party where a good is imported by such a person; material means a good that is used in the production of another good, including any components, ingredients, raw materials, parts, or pieces;
non-originating good or non-originating material means a good or material that does not qualify as originating under this Chapter;
originating material means a material that qualifies as originating under Article 3.1;
producer means a person who engages in the production of a good in the territory of a Party; and production means growing, raising, extracting, picking, gathering, mining, harvesting, fishing, trapping, hunting, manufacturing, processing, or assembling a good.Origin ProceduresFOUCertificate of Origin4.11. Each Party shall grant preferential tariff treatment in accordance with this Agreement to an originating good imported from the territory of the other Party on the basis of a Certificate of Origin.
2. In order to obtain preferential tariff treatment, an importer shall, in accordance with the procedures applicable in the importing Party, request preferential tariff treatment at the time of importation of an originating good.
3. A Certificate of Origin which certifies that a good being exported from the territory of a Party into the territory of the other Party qualifies as originating shall:
(a) be in a printed or electronic format; and
(b) be completed in English in conformity with the specimen and the instructions contained therein as set out in Annex 4B, which may be amended by agreement between the Parties.
4. Each Party shall:
(a) require an exporter in its territory to complete and sign a Certificate of Origin for any exportation of a good for which an importer may claim preferential tariff treatment upon importation of the good into the territory of the other Party; and
(b) provide that where an exporter in its territory is not the producer of the good, the exporter may complete and sign a Certificate of Origin on the basis of:
(i) its knowledge that the good qualifies as originating;
(ii) its reasonable reliance on the producer's written representation that the good qualifies as originating; or (iii) a completed and signed Certificate of Origin for the good voluntarily provided to the exporter by the producer.
5. A Certificate of Origin, duly completed and signed by an exporter or producer in a Party, may apply to:
(a) a single shipment of one or more goods into the territory of the other
(b) multiple shipments of identical goods to the same importer within any period specified in the Certificate of Origin, not exceeding 12 months from its date of issuance. Party; orWaiver of Certificate of Origin4.2A Certificate of Origin shall not be required where:
(a) the customs value of the importation does not exceed 1,000 US dollars or the equivalent amount in the currency of the importing Party, or such higher amount as may be established by the importing Party, unless the importing Party considers the importation to be carried out or planned for purposes of evading compliance with the Party's laws governing claims for preferential tariff treatment under this Agreement; or (b) it is a good for which the importing Party does not require the importer to present a Certificate of Origin demonstrating origin.Validity of Certificate of Origin4.31. A Certificate of Origin shall be valid for one year from its date of issuance in the exporting Party and be submitted within the same period to the customs authority of the importing Party in accordance with applicable procedures of the importing Party.
2. Notwithstanding paragraph 1:
(a) in the event that the good referred to in the Certificate of Origin is temporarily admitted or stored under control of the customs authority of a non-Party, the term of validity of the Certificate of Origin may be extended for one additional year; and
(b) in the event that the good referred to in the Certificate of Origin is temporarily admitted or stored under control of the customs authority of the importing Party, the term of validity of the Certificate of Origin shall be suspended for the amount of time the customs authority has authorized such operations.Claims for Preferential Tariff Treatment4.41. Except as otherwise provided for in this Chapter, each Party shall require an importer in its territory that claims preferential tariff treatment to:
(a) make a written statement in the customs declaration, based on a valid Certificate of Origin, indicating that the good qualifies as originating;
(b) have in its possession the Certificate of Origin at the time the statement referred to in subparagraph (a) is made;
(c) have in its possession the documents which certify that the requirements established in Article 3.14 (Direct Transport) have been met, where applicable; and
(d) submit the valid Certificate of Origin, as well as the documents referred to in subparagraph (c) to the customs authority, where it is required.
2. Where an importer has a reason to believe that a Certificate of Origin on which a statement was based contains incorrect information, the importer shall make a corrected statement and pay any customs duty owed.
3. Where an importer does not comply with any requirements under this Chapter or Chapter Three (Rules of Origin), preferential tariff treatment shall be denied to the goods imported from the territory of the exporting Party.Post-importation Claims for Preferential Tariff Treatment4.5Where a good was originating when it was imported into the territory of the importing Party, but the importer of the good did not claim preferential tariff treatment at the time of importation, that importer may, within the period specified in the Party's legislation or within one year following the date of importation, claim preferential tariff treatment and apply for a refund of any excess duties paid as a result of the good not having been accorded preferential tariff treatment, upon presentation to the importing Party of:
(a) a written or electronic declaration or statement, in accordance with the legislation of the importing Party, that the good was originating at the time of importation;
(b) a copy of a Certificate of Origin demonstrating that the good was originating; and
(c) such other documents related to the importation of the good as the importing Party may require.Record Keeping Requirements4.61. The records that may be used to prove that a good covered by a Certificate of Origin is originating and has fulfilled other requirements under this Chapter and Chapter Three (Rules of Origin) include, but are not limited to:
(a) documents related to the purchase of, cost of, value of, and payment for, the exported good;
(b) documents related to the purchase of, cost of, value of, and payment for, all materials, including indirect materials, used in the production of the exported good;
(c) documents related to the production of the good in the form in which it was exported; and
(d) such other documents as the Parties may agree.
2. An exporter or producer in the territory of the exporting Party that completes and signs a Certificate of Origin shall keep, at least for five years from the date of issuance of the Certificate of Origin, the records referred to in paragraph 1.
3. An importer claiming preferential tariff treatment for a good imported into the territory of a Party shall keep, at least for five years from the date of importation of the good, the records related to the importation, including a copy of the Certificate of Origin.
4. An importer, exporter, or producer may choose to keep the records referred to in paragraph 1 in any medium that allows for prompt retrieval, including, but not limited to, digital, electronic, optical, magnetic, or written form.Formal Errors4.71. Upon discovering formal errors in a Certificate of Origin, namely those that do not affect the originating status of the goods, the customs authority of the importing Party shall notify the importer of the errors that make the Certificate of Origin unacceptable.
2. The importer shall submit the appropriate correction of the Certificate of Origin within 30 days following the date of the receipt of the notification.
3. The correction shall contain the amendment, the date of the amendment, and, where applicable, the number of the Certificate of Origin and shall be signed by the person who issued the original Certificate of Origin.
4. If the importer fails to submit the correction within the period referred to in paragraph 2, the competent authority of the importing Party may proceed to conduct a verification under Article 4.8.Verification4.81. For purposes of determining whether a good imported into the territory of a Party from the territory of the other Party qualifies as originating, the competent authority of the importing Party may conduct a verification by means of:
(a) written requests for additional information from the importer;
(b) written requests for additional information from the exporter or producer through the competent authority of the exporting Party;
(c) requests that the competent authority of the exporting Party assists in verifying the origin of the good; or (d) verification visits to the premises of an exporter or producer in the territory of the other Party, along with officials of the competent authority of the exporting Party, to observe the facilities and the production processes of the good and to review the records referred to in Article 4.6.1, including accounting files.
2. Requests made under paragraph 1(b) or 1(c) by the competent authority of the importing Party and all the information provided in response by the competent authority of the exporting Party shall be in English.
3. Where the importer, exporter, or producer fails to answer the written request for additional information that the importing Party made under paragraph 1(a) or 1(b) within 90 days following the date of the receipt of the request, the importing Party may deny preferential tariff treatment to the relevant good.
4. Where the competent authority of the importing Party requests assistance under paragraph 1(c):
(a) it shall provide the competent authority of the exporting Party with:
(i) the reasons why such assistance for verification is requested;
(ii) the Certificate of Origin of the good or a copy thereof; and
(iii) any information and documents as may be necessary for purposes of such request;
(b) the competent authority of the exporting Party shall provide the competent authority of the importing Party with a written statement in English, including facts and findings, and any supporting documents made available by the exporter or producer. This statement shall indicate clearly whether the documents are authentic and whether the good concerned is originating and has fulfilled other requirements under this Chapter and Chapter Three (Rules of Origin). If the good can be considered to be originating, the statement shall include a detailed explanation of how the good obtained the originating status; and
(c) in case where the competent authority of the exporting Party fails to provide the written statement within 150 days following the date of the receipt of the request or where the written statement provided does not contain sufficient information, the importing Party may deny preferential tariff treatment to the relevant good.
5. Where the competent authority of the importing Party intends to conduct a verification under paragraph 1(d), it shall notify in writing, 30 days prior to the verification visit, the competent authority of the exporting Party of such a request. In case where the competent authority of the exporting Party does not give its written consent to such a request within 30 days following the date of the receipt of the notification, the importing Party may deny preferential tariff treatment to the relevant good.
6. The importing Party shall, within one year following the initiation of the verification, notify the importer and the exporting Party, including the exporter or producer through the competent authority of the exporting Party, in writing, of the determination whether the good is originating, as well as factual findings and the legal basis for the determination.
7. Where, at the time of importation, the customs authority of the importing Party has a reasonable doubt on the origin of a good, the good may be released upon a deposit or the payment of duties, pending the outcome of the verification. The deposit or duties paid shall be refunded once the outcome of the verification confirms that the good qualifies as originating.
8. A Party may suspend preferential tariff treatment to an importer on any subsequent import of a good when the competent authority of the Party had already determined that an identical good was not eligible for such treatment, until it is demonstrated that the good complies with the requirements under this Chapter and Chapter Three (Rules of Origin).
9. A Party may provide all the information requested under this Article, supporting documents, and all other related information electronically to the other Party.Penalties4.9Penalties shall be imposed on any person who does not comply with this Chapter or Chapter Three (Rules of Origin).Confidentiality4.101. A Party shall maintain the confidentiality of the information provided by the other Party in accordance with this Chapter, when requested by the other Party, and protect it from disclosure that could prejudice the competitive position of the person providing the information. Any violation of the confidentiality shall be treated in accordance with the domestic legislation of each Party.
2. The information provided in accordance with this Chapter shall not be disclosed without specific permission of the person or authority providing such information, except to the extent that it may be required to be disclosed in the context of judicial proceedings.Denial of Preferential Tariff Treatment4.11Except as otherwise provided in this Chapter, the importing Party may deny a claim for preferential tariff treatment or recover unpaid duties, where the good does not meet the requirements under this Chapter or Chapter Three (Rules of Origin).Modifications4.121. If a Party considers that this Chapter or Chapter Three (Rules of Origin) needs to be modified, that Party may submit a modification proposal to the other Party, along with supporting rationale and studies.
2. A Party shall respond to the proposal made by the other Party within 180 days following the submission of the proposal. 3. In case where the Parties do not reach an agreement, either Party may refer the matter to the Committee on Customs, Origin, and Trade Facilitation established under Article 5.25 (Committee on Customs, Origin, and Trade Facilitation) for consideration.Implementation4.131. During the period of five years following the date of entry into force of this Agreement, Annex 4A shall apply in lieu of Articles 4.1 and 4.6.1
2. After the period referred to in paragraph 1, Article 4.1 and 4.6 shall apply in lieu of Annex 4A.
3. During the period referred to in paragraph 1, the term Certificate of Origin used in Articles 4.2, 4.3, 4.4, 4.5, 4.7, 4.8, and 4.13 and Chapter Three (Rules of Origin) shall have the meaning of Proof of Origin referred to in Rule 1 of Annex 4A.
4. For purposes of accepting Certificates of Origin in an electronic format, the Parties shall, after one year following the date of entry into force of this Agreement, initiate the discussion on developing an electronic certification system to ensure the effective and efficient implementation of this Chapter, in a manner to be jointly determined by the competent authorities of the Parties.Uniform Regulations4.141. The Parties may establish and implement, through their respective laws, regulations, or administrative policies, Uniform Regulations regarding the interpretation, application, and administration of this Chapter and Chapter Three (Rules of Origin).
2. Each Party shall implement any modification of, or addition to, the Uniform Regulations within such period as the Parties may agree. 1 Proofs of Origin issued in accordance with Annex 4A, until the last day of the calendar year in which Articles 4.1 and 4.6 start to apply, shall be accepted by the Parties. Persons and authorized bodies referred to in Rule 6 of Annex 4A shall keep the documents referred therein even if Annex 4A ceases to apply.Definitions4.15For purposes of this Chapter:
competent authority means:
(a) for Korea, the Korea Customs Service, or its successor; and
(b) for Peru, the Ministry of Foreign Trade and Tourism, or its successor; and identical goods means goods that are the same in all respects relevant to the particular rule of origin that qualify the goods as originating.Customs Administration and Trade FacilitationFIVETRADE FACILITATIONAScope of Application and Objectives5.11. This Chapter shall apply, in accordance with the Parties' respective international obligations and domestic customs laws, to customs procedures applied to goods traded between the Parties and to the movement of means of transport between the Parties.
2. The objectives of this Chapter are to:
(a) simplify and harmonize customs procedures of the Parties;
(b) ensure predictability, consistency, and transparency in the application of customs laws, including administrative procedures of the Parties;
(c) ensure the efficient and expeditious clearance of goods and movement of means of transport;
(d) facilitate trade between the Parties; and
(e) promote cooperation between the customs administrations, within the scope of application of this Chapter.Competent Authorities5.21. The competent authorities for the administration of this Chapter are:
(a) for Korea, the Ministry of Strategy and Finance, or its successor; and
(b) for Peru, the Ministry of Foreign Trade and Tourism, or its successor.
2. Each competent authority shall designate one or more contact points for purposes of this Chapter and provide contact details of such contact points to the competent authority of the other Party. Competent authorities of the Parties shall promptly notify each other of any changes to the contact details of their contact points.Facilitation5.31. Each Party shall ensure that its customs procedures and practices are predictable, consistent, and transparent and facilitate trade.
2. Customs procedures of each Party shall, where possible and to the extent permitted by its respective customs laws, conform with the trade-related instruments of the World Customs Organization (hereinafter referred to as "WCO") to which the Party is a party, including those of the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention) (as amended) and Protocol of Amendment to the International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention).
3. Each Party shall provide for clearance of goods with minimum documentation requirements and make electronic systems accessible to customs users and use information technology that expedites procedures for the release of goods.
4. Customs administrations of the Parties shall facilitate the clearance, including the release, of goods in administering their procedures.
5. Each Party shall endeavor to provide a focal point, electronic or otherwise, through which its traders may submit all regulatory information that is required in order to obtain the clearance, including the release, of goods.Customs Valuation5.4The Parties shall apply Article VII of GATT 1994 and the Customs Valuation Agreement to goods traded between them.Tariff Classification5.5The Parties shall apply the International Convention on the Harmonized Commodity Description and Coding System to goods traded between them.Review and Appeal5.61. Each Party shall ensure that with respect to its determinations (1) on customs matters including origin of goods and preferential tariff treatment and other import, export, and transit requirements and procedures, persons concerned who are the subject of such determinations (2) shall have access to:
(a) a level of administrative review independent of the employee or office that issued the determinations; and (b) judicial review of the determinations.
2. A producer or exporter may provide, upon request of the reviewing authority, information directly to the Party conducting the administrative review, and may request such Party to treat that information as confidential in accordance with the rules applicable in that Party. This information shall be provided in accordance with the rules determined by the Parties.(1) For purposes of this Article, a determination, if made by Peru, means an administrative act. (2) It shall be understood that these persons need a representative domiciled in the territory of the Party where the review or appeal is made. Advance Rulings5.71. The Parties shall adopt or maintain procedures for the issuance of advance rulings on the following matters:
(a) tariff classification;
(b) execution of the rules of origin; and
(c) such other matters as the Parties may agree.
2. Procedures for the issuance of these advance rulings shall include at least: 
(a) a maximum term of 120 days for issuance or such shorter period as may be established by a Party, starting from the date on which all the requirements by the competent authority are met;
(b) conditions for their validation, revocation, and publication; and
(c) sanctions
3. Upon written request of importers, exporters, or producers, each Party shall issue, through its customs administration or competent authority, written advance rulings on customs matters, in particular on tariff classification and rules of origin, in accordance with the legislation of each Party.
4. Detailed procedures, and in particular deadlines, for the issuance, use, and revocation of advance rulings shall be set out in the legislation of each Party.
5. Peru shall fully implement the obligations under paragraph 1 from January 1, 2012.Use of Automated Systems In the Paperless Trading Environment5.81. The customs administrations shall use information technology to support customs operations, where it is cost-effective and efficient, particularly in the paperless trading context, taking into account developments in this area within the WCO.
2. The customs administrations shall endeavor to use information technology that expedites procedures for the release of goods, including the submission and processing of information and data before arrival of the shipment, as well as electronic or automated systems for risk management and targeting.
3. The Parties shall endeavor to ensure the simultaneous inspection of goods by the relevant domestic authorities at a single time and place when goods enter or leave the Parties' customs territory at a single time and place.Risk Management5.91. Each customs administration shall focus its inspection activities on high-risk shipments of goods and facilitate the clearance, including release, of low-risk goods in administering customs procedures. Additionally, customs administrations shall exchange information related to applied techniques on risk management, ensuring the confidentiality of the information.
2. Each Party shall endeavor to mutually accept the certification given to the economic operator by the customs administration of the exporting Party throughout its supply chain which follows international standards and promotes safer trade in cooperation with governments and international organizations.
3. The Parties shall fully implement the obligation under paragraph 2 within three years following the date of entry into force of this Agreement.Publication and Inquiry Points5.101. Each customs administration shall publish all customs laws and administrative procedures it applies or enforces.
2. Each customs administration shall designate one or more inquiry points to deal with inquiries from interested persons of either Party on customs matters arising from the implementation of this Agreement, and provide details of such inquiry points to the other customs administration. Information concerning the procedures for making such inquiries shall be accessible to the public.
3. Each customs administration shall endeavor to provide the other customs administration with timely notice of any significant modification to its customs laws or procedures governing the movement of goods and means of transport that is likely to substantially affect the operation of this Chapter.Express Consignments5.11Each customs administration shall adopt or maintain separate and expeditious customs procedures for express shipments while maintaining appropriate customs control and selection. Those procedures shall, under normal circumstances, provide an express clearance of goods after submission of all the necessary customs documents, regardless of their weight or customs value.Release of Goods5.121. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties.
2. In accordance with paragraph 1, each Party shall ensure that its customs administration or competent authority adopt or maintain procedures that:
(a) provide for the release of goods within a period no longer than that required to ensure compliance with its customs laws and to the extent possible within 48 hours following the goods' arrival;
(b) provide for advance electronic submission and processing of information before physical arrival of goods to enable the release of goods on arrival;
(c) allow goods to be released at the point of arrival without temporary transfer to warehouses or other facilities; and
(d) allow importers to withdraw goods from customs before, and without prejudice to, the final determination by its customs administration of the applicable customs duties, taxes, and fees.
3. A Party may require an importer to provide sufficient guarantee in the form of a surety, a deposit, or other appropriate instrument, covering the ultimate payment of the customs duties, taxes, and fees in connection with the importation of the good.CUSTOMS COOPERATIONBCustoms Cooperation5.131. The Parties shall enhance their cooperation in customs and customs-related matters.
2. The Parties affirm their commitment to the facilitation of the legitimate movement of goods and shall exchange expertise on measures to improve customs techniques and procedures and on computerized systems in accordance with this Agreement.
3. The Parties shall assist each other, in the areas within their competence, in the manner and under the conditions set out in this Chapter to ensure that the customs legislation is correctly applied, in particular by preventing, detecting, and investigating operations in breach of that legislation.
4. The Parties shall commit to:
(a) pursuing the harmonization of documentation used in trade and data elements in accordance with international standards, for purposes of facilitating the flow of trade between them, in customs-related matters regarding the importation, exportation, and transit of goods;
(b) intensifying cooperation between their customs laboratories and scientific departments and working towards the harmonization of customs laboratories methods ;
(c) exchanging customs' experts of the Parties;
(d) jointly organizing training programs on customs-related issues for the officials who participate directly in customs procedures;
(e) developing effective mechanisms for communicating with the trade and business communities;
(f) assisting each other, to the extent possible, in tariff classification, valuation, and determination of origin, for the preferential tariff treatment of imported goods, and other customs matters including non-preferential origin;
(g) promoting strong and efficient intellectual property rights enforcement by customs authorities, regarding imports, exports, re-exports, transit, transshipments, and other customs procedures, and in particular regarding counterfeit goods; and
(h) improving the security, while facilitating trade, of sea-container and other shipments from all locations that are imported into, trans-shipped through, or transiting Korea or Peru. The Parties agree that the objectives of the intensified and broadened cooperation include, but are not limited to:
(i) working together to reinforce the customs-related aspects for securing the logistics chain of international trade; and
(ii) coordinating positions, to the extent possible, in any multilateral fora where issues related to container security may be appropriately raised and discussed.Implementation of the Customs Cooperation5.141. The implementation of this Section shall be entrusted to the customs administration of the Parties. They shall decide on all practical measures and arrangements necessary for its application, taking into consideration the rules in force in the field of data protection.
2. The Parties shall consult each other on the detailed rules of implementation which are adopted in accordance with this Chapter.
3. The Parties shall exchange the contact points for the exchange of information.Mutual Administrative Assistance on Customs Matters5.151. Upon request of the applicant authority, the requested authority shall provide it with all relevant information which may enable it to ensure compliance with customs legislation, including information on non-preferential origin, tariff classification, valuation, determination of origin, and operations noted or planned which are or might be in breach of such legislation.
2. Upon request of the applicant authority, the requested authority shall inform it whether goods exported from the territory of one of the Parties have been properly imported into the territory of the other Party, specifying, where appropriate, the customs procedure applied to the goods.
3. Upon request of the applicant authority, the requested authority shall, within the framework of its laws, take the necessary steps to ensure special surveillance of:
(a) natural or legal persons in respect of whom there are reasonable grounds for believing that they are or have been in breach of customs legislation;
(b) places where goods are stored in a way that gives grounds for suspecting that they are intended to be used in operations in breach of customs legislation;
(c) movements of goods notified as possibly giving rise to substantial breaches of customs legislation; and
(d) means of transport for which there are reasonable grounds for believing that they have been, are, or may be used in operations in breach of customs legislation.
4. The Parties shall provide each other, on their own initiative and in accordance with their laws, rules, and other legal instruments, with assistance if they consider that to be necessary for the correct application of customs legislation, particularly when they obtain information on:
(a) operations which are or appear to be in breach of such legislation and which may be of interest to other Party;
(b) new means or methods employed in carrying out such operations;
(c) goods known to be subject to substantial breaches of customs legislation;
(d) natural or legal persons in respect of whom there are reasonable grounds for believing that they are or have been in substantial breach of customs legislation; or
(e) means of transport for which there are reasonable grounds for believing that they have been, are, or may be used in operations in substantial breach of customs legislation.Form and Substance of Requests for Assistance5.161. Requests for assistance in accordance with this Chapter shall be made in writing. They shall be accompanied by the documents necessary to enable compliance with the request. In urgent situations, oral requests may be accepted, but shall be confirmed in writing immediately.
2. Requests for assistance in accordance with this Chapter shall include the following information:
(a) the applicant authority;
(b) the measure requested;
(c) the object of and the reason for the request;
(d) the legal or regulatory provisions and other legal elements involved;
(e) indications as exact and comprehensive as possible on the natural or legal persons who are the target of the investigations; and
(f) a summary of the relevant facts and of the inquiries already carried out.
3. Requests shall be submitted in English. Where the documents are made in a language other than English, the requested authority may require the applicant authority to submit a translation of the documents into English.
4. If a request does not meet the formal requirements set out above, its correction or completion may be requested.Execution of Requests5.171. In order to comply with a request for assistance, the requested authority shall proceed, within the limits of its competence and available resources, as though it were acting on its own account or upon request of other authorities of that same Party, by supplying information already possessed, by carrying out appropriate inquiries, or by arranging for them to be carried out. This paragraph shall also apply to any other authority to which the request has been addressed by the requested authority when the latter cannot act on its own.
2. Requests for assistance shall be executed in accordance with the legal or regulatory provisions of the requested Party and the answer shall be sent at the latest within 120 days following the date of the receipt of the request.
3. Duly authorized officials of a Party may be present in the offices of the requested authority or any other concerned authority in accordance with paragraph 1, to obtain information related to activities that are or may be operations in breach of customs legislation which the applicant authority needs for purposes of this Chapter.
4. Duly authorized officials of a Party involved may be present at inquiries or verifications carried out in the territory of the other Party.

Article 5.18. Exceptions to the Obligation to Provide Assistance

1. The Parties may refuse to give assistance as provided for in this Chapter, where such assistance would:
(a) be likely to prejudice their sovereignty, public policy, security, or other essential interests;
(b) involve currency or tax regulations other than customs legislation; or
(c) violate an industrial, commercial, or professional secret.
2. Where the applicant authority requests assistance which it would itself be unable to provide if so requested, it shall draw attention to that fact in its request. It shall then be for the requested authority to decide how to respond to such a request.
3. If assistance is refused, the decision and the reasons therefor shall be notified to the applicant authority without delay.

Article 5.19. Confidentiality

1. Any information communicated in any form in accordance with this Chapter, shall be treated as confidential or restricted. It shall be covered by the obligation of official secrecy and shall enjoy the protection extended to similar information under the relevant laws of the receiving Party.
2. Personal data, that is, all information related to an identified or identifiable individual, may be exchanged only where the receiving Party undertakes to protect such data in at least an equivalent way to the one applicable to that particular case in the supplying Party.

Article 5.20. Use of Information

1. Information obtained shall be used solely for purposes of this Chapter. Where a Party requests the use of such information for other purposes, the Party shall ask for the prior written consent of the authority which furnished the information. Such use shall then be subject to any restrictions laid down by that authority. Information related to illicit drug trafficking may be communicated to other authorities.
2. Paragraph 1 shall not impede the use of information in any judicial or administrative proceedings instituted for failure to comply with customs legislation. The customs administration which supplied that information shall be notified of such use without delay.
3. The Parties may, in their records of evidence, reports, and testimonies and in proceedings and charges brought before the courts, use as evidence information obtained and documents consulted in accordance with this Chapter.

Article 5.21. Experts and Witnesses

An official of a requested authority may be authorized to appear, within the limitations of the authorization granted, as an expert or witness in judicial or administrative proceedings regarding the matters covered by this Chapter in the jurisdiction of the other Party, and produce such objects, documents, or authenticated copies thereof, as may be needed for the proceedings. The request for an appearance shall indicate specifically on what matters and by virtue of what title or qualification the official will be questioned.

Article 5.22. Assistance Expenses

The Parties shall waive all claims on each other for the reimbursement of expenses incurred in accordance with this Chapter, except, as appropriate, for expenses related to experts and witnesses and to interpreters and translators who are not public officials.

Article 5.23. Review of Customs Procedures

1. Each customs administration shall periodically review its procedures with a view to their further simplification and the development of mutually beneficial arrangements to facilitate the trade between the Parties.
2. In applying a risk management approach to customs control, each customs administration shall regularly review the performance, effectiveness, and efficiency of its systems.

Article 5.24. Consultations

1. Without prejudice to Article 5.25, a Party may at any time request consultations with the other Party on any matter arising from the operation, or implementation of this Chapter, including tariff classification, customs valuation, and origin determination. Such consultations shall be conducted through the relevant contact points, and shall take place within 30 days following the date of receipt of the request, unless the Parties determine otherwise.
2. In the event that such consultations fail to resolve the matter, the requesting Party may refer the matter to the Committee on Customs, Origin, and Trade Facilitation established under Article 5.25 for consideration.
3. The Parties may consult each other on any trade facilitation issues arising from procedures to secure trade and the movement of means of transport between the Parties.

Article 5.25. Committee on Customs, Origin, and Trade Facilitation

1. The Parties hereby establish a Committee on Customs, Origin, and Trade Facilitation, which shall ensure the proper functioning of this Chapter and Chapters Three (Rules of Origin) and Four (Origin Procedures), and examine all issues arising from their application. For matters covered by this Agreement, it shall report to the Joint Commission.
2. The Committee shall consist of the competent authorities and other relevant authorities of the Parties responsible for rules of origin, origin procedures, trade facilitation, and customs matters.
3. The Committee shall:
(a) ensure the effective, uniform, and consistent administration of this Chapter and Chapters Three (Rules of Origin) and Four (Origin Procedures), and enhance cooperation in this regard;
(b) maintain the Annex 3A (Product Specific Rules of Origin) on the basis of the transposition of the HS;
(c) advise the Joint Commission of proposed solutions to address issues related to:
(i) interpretation, application, and administration of this Chapter and Chapters Three (Rules of Origin) and Four (Origin Procedures);
(ii) tariff classification and customs valuation related to the determination of origin;
(iii) calculation of the regional value content; and
(iv) the adoption by either Party of operational practices not in conformity with this Chapter and Chapters Three (Rules of Origin) and Four (Origin Procedures) that may adversely affect the trade between the Parties;
(d) adopt customs practices and standards which facilitate commercial exchange between the Parties in accordance with international standards;
(e) settle any disputes related to interpretation, application, and administration of this Chapter, including tariff classification. If the Committee does not reach a decision on the tariff classification, the Committee shall hold the appropriate consultations at, and seek recommendations from, the WCO. Such recommendations of the WCO shall be applied by the Parties;
(f) propose to the Joint Commission for approval of the modification proposals under Article 4.12 (Modifications) in the event a consensus is reached between the Parties; (g) work on the development of an electronic certification and verification system; and (h) examine any other origin-related matters not covered by the Committee on Trade in Goods established under Article 2.17 (Committee on Trade in Goods).
4. The Committee may formulate resolutions, any recommendations, or opinions which it considers necessary for the attainment of the common objectives and sound functioning of the mechanisms established in this Chapter and Chapters Three (Rules of Origin) and Four (Origin Procedures).

Section C. DEFINITIONS

Article 5.26. Definitions

For purposes of this Chapter:
applicant authority means a competent administrative authority which has been appointed by a Party to make a request;
breaches of customs legislation means any violation or attempted violation of that legislation;
customs administration means:
(a) for Korea, the Korea Customs Service, or its successor; and
(b) for Peru, the National Superintendence of Tax Administration (Superintendencia Nacional de Administración Tributaria), or its successor.
customs laws means any legislation administered, applied, or enforced by the customs administration of a Party;
customs legislation means any legal or regulatory provision adopted by Korea or Peru, governing the import, export, and transit of goods and their placing under any customs procedure, including measures of prohibition, restriction, and control;
customs procedures means the treatment applied by each customs administration to goods and means of transport that are subject to customs control;
goods means all goods falling within Chapters 1 to 97 of the HS;
means of transport means various types of vessels, vehicles, aircraft, and pack-animals which enter or leave the territory carrying persons, goods, or articles; and
requested authority means a competent administrative authority which has been appointed by a Party to receive a request.

Chapter SIX. Sanitary and Phytosanitary Measures

Article 6.1. Objectives

The objectives of this Chapter are to:
(a) minimize the negative effects on trade of sanitary and phytosanitary measures while protecting human, animal, or plant life or health in the Parties' territories;
(b) ensure that the Parties' sanitary and phytosanitary measures shall not be applied in a manner which would constitute a disguised restriction on trade between the Parties;
(c) provide a committee to deal with matters related to sanitary and phytosanitary measures that may, directly or indirectly, affect trade between the Parties;
(d) strengthen communication and cooperation between the Parties' competent authorities having responsibility for matters covered by this Chapter; and
(e) deepen mutual understanding of each Party's sanitary and phytosanitary regulations and procedures.

Article 6.2. Scope of Application

This Chapter shall apply to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties.

Article 6.3. Affirmation of the Sps Agreement

The Parties affirm their existing rights and obligations with respect to each other under the SPS Agreement.

Article 6.4. Equivalence

The importing Party shall accept the sanitary and phytosanitary measures of the exporting Party as equivalent, even if these measures differ from its own measures, if the exporting Party objectively demonstrates to the importing Party that its measures achieve the importing Party's appropriate level of sanitary and phytosanitary protection. For this purpose, reasonable access shall be given, upon request, to the importing Party for inspection, testing, and other relevant procedures.

Article 6.5. Risk Assessment

Without prejudice to Article 5 of the SPS Agreement, the Parties shall endeavor to give due consideration to a request for risk assessment of the other Party.

Article 6.6. Adaptation to Regional Conditions, Including Pest-or Disease-free Areas and Areas of Low Pest or Disease Prevalence

1. Each Party shall recognize the concepts of pest-or disease-free areas and areas of low pest or disease prevalence in accordance with the SPS Agreement.
2. The exporting Party claiming that areas within its territory are pest-or disease-free areas or areas of low pest or disease prevalence shall provide the necessary evidence thereof in order to objectively demonstrate to the importing Party that such areas are, and are likely to remain, pest-or disease-free areas or areas of low pest or disease prevalence, respectively. For this purpose, reasonable access shall be given, upon request, to the importing Party for inspection, testing, and other relevant procedures.
3. In connection with paragraphs 1 and 2, if a Party does not accept the determination on pest-or disease-free areas or areas of low pest or disease prevalence made by the other Party, the Party not accepting the determination shall explain the reasons in a timely manner.

Article 6.7. Committee on Sanitary and Phytosanitary Matters

1. The Parties hereby agree to establish a Committee on Sanitary and Phytosanitary Matters comprising representatives of each Party's competent authorities who have responsibility for sanitary and phytosanitary matters.
2. The objectives of the Committee shall be to:
(a) enhance each Party's implementation of the SPS Agreement;
(b) protect human, animal, or plant life or health;
(c) enhance cooperation and consultation on sanitary and phytosanitary matters; and
(d) facilitate trade between the Parties.
3. Recognizing that the resolution of sanitary and phytosanitary matters must rely on science and risk-based assessment and is best achieved through bilateral technical cooperation and consultation, the Committee shall seek to enhance any present or future relationships between the Parties' agencies with responsibility for sanitary and phytosanitary matters. For this purpose, the Committee shall:
(a) monitor the implementation of this Chapter;
(b) pursue transparency regarding sanitary and phytosanitary measures applicable to trade;
(c) facilitate the exchange of information on matters related to the application of sanitary and phytosanitary measures that affect, or may affect, trade between the Parties;
(d) promote coordination of technical cooperation activities related to development, implementation, and application of sanitary and phytosanitary measures;
(e) improve mutual understanding of each Party's sanitary and phytosanitary measures and the regulatory processes related to those measures;
(f) discuss and review issues arising from the application of sanitary and phytosanitary measures;
(g) cooperate to develop a common understanding on the application of international standards, guidelines, and recommendations; and
(h) deal with other issues agreed by the Parties.
4. The Parties shall adopt the Committee's terms of reference within a reasonable time following the entry into force of this Agreement.
5. The Committee shall be coordinated by:
(a) for Korea, the Ministry for Food, Agriculture, Forestry and Fisheries, or its successor; and
(b) for Peru, the Ministry of Foreign Trade and Tourism, or its successor.
6. The Parties will exchange the contact details of their respective coordinators referred to in paragraph 5 after the entry into force of this Agreement in order to facilitate communication with respect to the implementation of this Chapter.
7. The Committee shall meet within one year following the date of entry into force of this Agreement and thereafter every two years unless the Parties otherwise agree. The Committee may meet in person or by any technological means available to the Parties.

Article 6.8. Dispute Settlement

Neither Party shall have recourse to Chapter Twenty-Three (Dispute Settlement) for any matter arising under this Chapter.

Article 6.9. Definitions

For purposes of this Chapter: SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement; and definitions in Annex A to the SPS Agreement shall apply.

Chapter SEVEN. Technical Barriers to Trade

Article 7.1. Objective

The objective of this Chapter is to increase and facilitate trade between the Parties by:
(a) improving the implementation of the TBT Agreement;
(b) ensuring that standards, technical regulations, and conformity assessment procedures do not create unnecessary obstacles to trade; and
(c) enhancing joint cooperation between the Parties.

Article 7.2. Relation to the Tbt Agreement

The Parties affirm their existing rights and obligations with respect to each other under the TBT Agreement, and to this end the TBT Agreement is incorporated into and made part of this Agreement, mutatis mutandis.

Article 7.3. Scope of Application

1. This Chapter shall apply to the preparation, adoption, and application of all standards, technical regulations, and conformity assessment procedures of the Parties that may affect trade in goods between the Parties.
2. Notwithstanding paragraph 1, this Chapter shall not apply to sanitary and phytosanitary measures covered by Chapter Six (Sanitary and Phytosanitary Measures) or to purchasing specifications prepared by governmental bodies for production or consumption requirements of governmental bodies covered by Chapter Sixteen (Government Procurement).

Article 7.4. International Standards

1. Each Party shall use relevant international standards, guides, and recommendations, to the extent provided in Articles 2.4 and 5.4 of the TBT Agreement, as a basis for its technical regulations and conformity assessment procedures. 2. In determining whether an international standard, guide, or recommendation for purposes of Articles 2, 5, and Annex 3 of the TBT Agreement exists, each Party shall apply Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex 3 of the Agreement (Annex 4 to G/TBT/9), adopted on November 13, 2000 by the WTO Committee on Technical Barriers to Trade.

Article 7.5. Equivalence of Technical Regulations

1. Each Party shall, upon written request of the other Party, give positive consideration to accepting as equivalent technical regulations of the other Party, even if these regulations differ from its own, provided that 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, upon request of the other Party, explain the reasons for its decision.

Article 7.6. Conformity Assessment Procedures

1. The Parties recognize that a broad range of mechanisms exists to facilitate the acceptance in a Party's territory of the results of conformity assessment procedures conducted in the other Party's territory. The Parties shall exchange information on the range of mechanisms used in their territories.
2. The Parties shall accept, whenever possible, the results of the conformity assessment procedures conducted in the territory of the other Party, even when those procedures differ from its own, provided that those procedures offer a satisfactory assurance of conformity with applicable technical regulations or standards equivalent to its own procedures. Where a Party does not accept the results of conformity assessment procedures conducted in the other Party, it shall, upon request of the other Party, explain the reasons for its decision.
3. Prior to accepting the results of a conformity assessment procedure in accordance with paragraph 2, the Parties may consult on matters such as the technical competence of the conformity assessment bodies involved in order to enhance confidence in the permanent reliability of each one of the conformity assessment results.
4. Each Party may accredit or otherwise recognize conformity assessment bodies in the territory of the other Party on terms no less favorable than those it accords to conformity assessment bodies in its territory. If a Party accredits or otherwise recognizes a body assessing conformity with a particular technical regulation or standard in its territory and it refuses to accredit or otherwise recognize a body in the territory of the other Party assessing conformity with that technical regulation or standard, it shall, upon request of the other Party, explain the reasons for its decision.
5. The Parties shall give positive consideration to a request by the other Party to negotiate agreements for the mutual recognition of the results of their respective conformity assessment procedures. Where a Party declines such request, it shall, upon request of the other Party, explain the reasons for its decision. The Parties shall work together to implement the mutual recognition agreements to which both Parties are party.

Article 7.7. Transparency

1. Each Party shall electronically notify the other Party's representative to the Committee on Technical Barriers to Trade established under Article 7.9, at the same time as it submits its notification to the WTO Central Registry of Notifications in accordance with the TBT Agreement of:
(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. Each Party shall also notify the other Party of its proposed technical regulations and conformity assessment procedures that are in accordance with the technical content of relevant international standards and that may have a significant effect on trade between the Parties.
3. The notification of technical regulations and conformity assessment procedures shall include an on-line link to, or a copy of, the complete text of the notified document. Where possible, the Parties shall provide an on-line link to, or a copy of, the complete text of the notified document in English.
4. Each Party shall allow a period of at least 60 days following the notification of its 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 of the other Party for extending the comment period.
5. Each Party shall publish or otherwise make publicly available, in print or electronically, its responses or a summary of its responses to significant comments it receives, no later than the date it publishes the final technical regulation or conformity assessment procedure.
6. Each Party shall, upon request of the other Party, provide information on the objectives of, and rationale for, a technical regulation or conformity assessment procedure that the Party has adopted or is proposing to adopt.
7. A Party shall give positive consideration to a reasonable request of the other Party, received prior to the end of the comment period following the notification of a proposed technical regulation, for extending the period of time between the adoption of the technical regulation and its entry into force, except where this would be ineffective in fulfilling the legitimate objectives pursued.
8. The Parties shall ensure that all adopted technical regulations and conformity assessment procedures are available on an official website that is free of charge and publicly accessible.
9. Where a Party detains at a port of entry a good imported from the territory of the other Party due to a failure to comply with a technical regulation, it shall immediately notify the importer of the reasons for the detention of the good.

Article 7.8. Technical Cooperation

1. The Parties agree to cooperate and provide technical assistance, to the extent possible, in order to, inter alia:
(a) encourage the implementation of this Chapter;
(b) encourage the implementation of the TBT Agreement;
(c) strengthen the relevant organizations of standardization, technical regulation, and conformity assessment, including their training of the human resources;
(d) increase the cooperation between the standardizing, technical regulatory, or conformity assessment bodies in the Parties' territories, including participation and collaboration in international organizations;
(e) enhance cooperation in the development and improvement of standards, technical regulations, and conformity assessment procedures; and
(f) facilitate the consideration of any sector-specific proposal a Party makes for further cooperation between governmental and non-governmental standardizing or conformity assessment bodies in the Parties' territories.
2. Upon request of a Party that has an interest in developing a similar technical regulation of the other Party, that other Party shall endeavor to provide, to the extent practicable, relevant information, studies, or other documents, except for confidential information, on which it has relied in the development of the technical regulation.

Article 7.9. Committee on Technical Barriers to Trade

1. The Parties hereby establish a Committee on Technical Barriers to Trade comprising representatives of each Party as set out in paragraph 4.
2. The Committee shall:
(a) monitor the implementation, enforcement, and administration of this Chapter;
(b) promptly address any issue that a Party raises related to the development, adoption, application, or enforcement of standards, technical regulations, or conformity assessment procedures;
(c) enhance cooperation between the Parties in the areas set out in Article 7.8;
(d) facilitate the process for the negotiation of a mutual recognition agreement;
(e) exchange information, upon request of a Party, on standards, technical regulations, and conformity assessment procedures, including the Parties respective views regarding third party issues;
(f) exchange information on developments in non-governmental, regional, and multilateral fora engaged in activities related to standards, technical regulations, and conformity assessment procedures;
(g) upon written request of a Party, consult on any matter arising under this Chapter;
(h) review this Chapter in light of any developments under the WTO Committee on Technical Barriers to Trade and, if necessary, develop recommendations for amendments to this Chapter;
(i) establish, if necessary to achieve the objectives of this Chapter, issue or sector-specific ad-hoc working groups;
(j) as it considers appropriate, report to the Joint Commission on the implementation of this Chapter;
(k) take any other steps that the Parties consider will assist them in implementing this Chapter; and
(l) establish its own rules.
3. Where the Parties have had recourse to consultations under paragraph 2(g), the consultations shall, if the Parties agree, constitute consultations under Article 23.4 (Consultations).
4. The Committee shall be coordinated by:
(a) for Korea, the Korean Agency for Technology and Standards, or its successor; and
(b) for Peru, the Vice Ministry of Foreign Trade, or its successor.
5. The Committee shall meet at least every two years unless the Parties otherwise agree. The Committee may meet in person or by any technological means available to the Parties.

Article 7.10. Information Exchange

1. Any information or explanation requested by a Party in accordance with this Chapter shall be provided by the other Party, in print or electronically, within 60 days, which may be extended with prior justification of the Party providing information or explanation.
2. Nothing in this Chapter shall be construed to require a Party to furnish any information the disclosure of which it considers is contrary to its essential security interests.

Article 7.11. Definition

For purposes of this Chapter, TBT Agreement means the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement.

Chapter EIGHT. Trade Remedies

Section A. GLOBAL SAFEGUARD MEASURES

Article 8.1. Global Safeguard Measures

1. Each Party retains its rights and obligations under Article XIX of GATT 1994 and the Safeguards Agreement. 2. This Agreement does not confer any additional rights or obligations on the Parties with regard to actions taken in accordance with Article XIX of GATT 1994 and the Safeguards Agreement, except that a Party taking a global safeguard measure may exclude imports of an originating good of the other Party if such imports are not a substantial cause of serious injury or threat thereof.
3. Neither Party may apply, with respect to the same good, at the same time:
(a) a bilateral safeguard measure; and
(b) a measure under Article XIX of GATT 1994 and the Safeguards Agreement.

Section B. BILATERAL SAFEGUARD MEASURES

Article 8.2. Imposition of a Bilateral Safeguard Measure

1. A Party may apply a measure set out in paragraph 2, during the transition period only, if, as a result of the reduction or elimination of a customs duty in accordance with this Agreement, an originating good of the other Party is being imported into the Party's territory in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good.
2. If the conditions in paragraph 1 are met, a Party may take a bilateral safeguard measure which:
(a) suspends the further reduction of any rate of customs duty on the good provided for under this Agreement; or
(b) increases the rate of customs duty on the good to a level not to exceed the lesser of
(i) the most-favored-nation (MFN) applied rate of customs duty in effect at the time the measure is applied; and (ii) the base rate of customs duty as provided in the schedule set out in Annex 2B (Elimination of Customs Duties).（1）
3. A Party shall apply a bilateral safeguard measure to imports of an originating good irrespective of their source.

Article 8.3. Standards for a Bilateral Safeguard Measure

1. Neither Party may apply a safeguard measure:
(a) except to the extent, and for such time, as may be necessary to prevent or remedy serious injury and to facilitate adjustment;
(b) for a period exceeding two years, except that the period may be extended by up to two years if the competent authority of the importing Party determines, in conformity with the procedures set out in Article 8.4, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the domestic industry is adjusting; or
(c) beyond the expiration of the transition period.
2. In order to facilitate adjustment in a situation where the expected duration of a bilateral safeguard measure is over one year, the Party applying the measure shall progressively liberalize it at regular intervals during the period of application.
3. Upon the termination of a bilateral safeguard measure, the Party that has applied the measure shall apply the rate of customs duty set out in the Party's Schedule set out in Annex 2B (Elimination of Customs Duties) as if the measure had never been applied.
4. A Party shall not apply a bilateral safeguard measure more than once on the same good until a period of time equal to the duration of the previous bilateral safeguard measure, including any extension, has elapsed commencing from the termination of the previous bilateral safeguard measure, provided that the period of non-application is at least one year.

Article 8.4. Investigation Procedures and Transparency Requirements

1. A Party shall apply a bilateral safeguard measure only following an investigation by the Party's competent investigating authority in accordance with Articles 3 and 4.2(c) of the Safeguards Agreement. To this end, Articles 3 and 4.2(c) of the Safeguards Agreement are incorporated into and made part of this Agreement, mutatis mutandis.
2. In the investigation described in paragraph 1, a Party shall comply with the requirements of Article 4.2(a) of the Safeguards Agreement. To this end, Article 4.2(a) of the 1 The Parties understand that neither tariff rate quotas nor quantitative restrictions would be a permissible form of a bilateral safeguard measure. Safeguards Agreement is incorporated into and made part of this Agreement, mutatis mutandis.
3. Each Party shall ensure that its competent investigating authority completes any such investigation within one year following its date of initiation.

Article 8.5. Provisional Bilateral Safeguard Measures

1. In critical circumstances, where delay would cause damage that would be difficult to repair, a Party may apply a provisional bilateral safeguard measure pursuant to a preliminary determination by its competent investigating authority that there is clear evidence that the increased imports of an originating good from the other Party, as the result of the reduction or elimination of a customs duty under this Agreement, constitute a substantial cause of serious injury, or threat thereof, to a domestic industry.
2. The duration of the provisional bilateral safeguard measure, taking any forms set out in Article 8.2, shall not exceed 180 days, during which the pertinent requirements of Articles 8.2 and 8.4 shall be met. The guarantees or received funds arising from the imposition of a provisional bilateral safeguard measure shall be promptly liberated or refunded, as it corresponds, when the investigation does not determine that increased imports constitute a substantial cause of serious injury, or threat thereof, to a domestic industry. The duration of any such provisional bilateral safeguard measure shall be counted as part of the duration of a bilateral safeguard measure.

Article 8.6. Notification and Consultation

1. A Party shall promptly notify the other Party in writing upon:
(a) initiating a bilateral safeguard proceeding under this Section;
(b) applying a provisional bilateral safeguard measure; and
(c) taking a final decision to apply or extend a bilateral safeguard measure.
2. A Party shall provide to the other Party a copy of the public version of the report of its competent investigating authority in accordance with Article 8.4.1.
3. Upon request of a Party whose good is subject to a bilateral safeguard proceeding under this Section, the Party conducting that proceeding shall enter into consultations with the requesting Party to review a notification under paragraph 1 or any public notice or report that the competent investigating authority has issued in connection with the proceeding.
4. All notifications during any bilateral safeguard investigation shall be exchanged in English.

Article 8.7. Compensation

1. No later than 30 days after it applies a bilateral safeguard measure, the Party applying the measure shall afford an opportunity to the other Party to consult with it regarding appropriate 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 measure. The Party applying the measure shall provide such compensation as the Parties mutually agree.
2. If the Parties are unable to reach an agreement on compensation within 30 days following the commencement of consultations, the Party against whose originating good the measure is applied may suspend the application of concessions with respect to originating goods of the Party applying the measure that have trade effects substantially equivalent to the measure.
3. The Party against whose originating good the measure is applied shall notify the Party applying the measure in writing and in English before suspending concessions under paragraph 2.
4. The obligation to provide compensation under paragraph 1 and the right to suspend concessions under paragraph 2 shall terminate on the date of the termination of the bilateral safeguard measure.

Article 8.8. Definitions

For purposes of this Section: bilateral safeguard measure means a measure described in Article 8.2.2; competent investigating authority means:
(a) for Korea, the Korea Trade Commission, or its successor; and
(b) for Peru, the Vice Ministry of Foreign Trade, or its successor; domestic industry means, with respect to an imported good, the producers as a whole of the like or directly competitive good operating within the territory of a Party or those producers whose collective production of the like or directly competitive good constitutes a major proportion of the total domestic production of such good; serious injury means a significant overall impairment in the position of a domestic industry; substantial cause means a cause which is important and not less than any other cause; threat of serious injury means serious injury that, on the basis of facts and not merely on allegation, conjecture, or remote possibility, is clearly imminent; and transition period means the 10-year period following the date of entry into force of this Agreement, except that for any good for which the Schedule set out in Annex 2B (Elimination of Customs Duties) of the Party applying the bilateral safeguard measure provides for the Party to eliminate its customs duties on the good over a period of 10 years or more, transition period means the customs duty elimination period for the good set out in that Schedule plus five years.

Section C. ANTI-DUMPING AND COUNTERVAILING MEASURES

Article 8.9. Anti-dumping and Countervailing Measures

1. Each Party retains its rights and obligations under Article VI of GATT 1994, the AD Agreement, and the SCM Agreement regarding the application of anti-dumping and countervailing measures.
2. During any anti-dumping and countervailing duty investigation involving the Parties, the Parties agree to exchange all notifications, exporter/producer questionnaires, and information requirements (2) in English.
3. Should a Party decide to impose an anti-dumping or countervailing duty, the amount of such duty shall not exceed the margin of dumping or subsidies, and the investigating Party shall endeavor to apply a duty which is less than the margin of dumping or subsidies, if such lesser duty would be adequate to remove the injury to the domestic industry.
4. Upon receipt by a Party's competent investigating authority of a properly documented countervailing duty application with respect to imports from the other Party, and before initiating an investigation, the Party shall provide written notification to the other Party of its receipt of the application and afford the other Party a meeting to consult with its competent investigating authority regarding the application, as provided for in Article 13 of the SCM Agreement.
5. Where a Party's competent investigating authority conducts an anti-dumping or countervailing duty investigation with respect to imports from the other Party, in addition to the notifications in accordance with the relevant provisions of the AD Agreement and the SCM Agreement, and independently of the notifications provided directly to the producers or exporters, it shall provide to the other Party written notification of the initiation of such investigation procedure, together with a copy of the exporter/producer questionnaire and the list of the known main exporters or producers.
6. The Party that received the notification in accordance with paragraph 5:
(a) shall endeavor to send the list of producers and exporters of the good under investigation to the competent investigating authority of the other Party, together with their addresses, within 30 days;
(b) shall endeavor to inform the exporters or producers, or the relevant trade or industrial associations of the good under investigation, of the information received from the competent investigating authority of the other Party; and
(c) may collect responses of the exporters or producers to the questionnaire and send the collected responses to the competent investigating authority of the other Party by the due date specified in the questionnaire.

Article 8.10. Definition

For purposes of this Section:
competent investigating authority means:
(a) for Korea, the Korea Trade Commission, or its successor; and
(b) for Peru, the National Institute of the Defense of Competition and the Protection of Intellectual Property, or its successor.

Section D. COOPERATION MECHANISMS ON TRADE REMEDIES

Article 8.11. Cooperation Mechanisms on Trade Remedies

1. The Parties may establish cooperation mechanisms between the competent investigating authorities and relevant agencies of each Party to promote a better understanding of their respective laws, their application and, in general, any aspect of trade policy regarding trade remedies matters by sharing information and experiences.
2. The Parties may undertake cooperative activities through cooperation mechanisms on trade remedies matters that they consider appropriate, such as:
(a) enhancing each Party's knowledge and understanding of the other Party's trade remedy laws, policies, and practices;
(b) improving cooperation between the Parties' agencies responsible for trade remedies matters;
(c) exchanging information on multilateral issues related to trade remedies, including those related to WTO negotiations such as disciplines with regards to lesser duty rule and prohibition of zeroing in anti-dumping investigations; and
(d) subject to each Party's laws and regulations, providing a meeting or other similar opportunities after the notification of the receipt of a properly documented application for the initiation of an anti-dumping investigation. Such a meeting or similar opportunities shall not interfere with a Party's procedures for the initiation of an anti-dumping investigation.

Chapter NINE. Investment

Section A. INVESTMENT

Article 9.1. Scope of Application

1. This Chapter shall apply to measures adopted or maintained by a Party related to:
(a) investors of the other Party;
(b) covered investments; and
(c) with respect to Articles 9.7 and 9.9, all investments in the territory of the Party.
2. For greater certainty, this Chapter does not bind a Party in relation to any act or fact that took place or any situation that ceased to exist before the date of entry into force of this Agreement.
3. A Party's obligations under this Section shall apply to non-governmental bodies (1) when they exercise any regulatory, administrative, or other governmental authority delegated to them by that Party, such as the authority to expropriate, grant licenses, approve commercial transactions, or impose quotas, fees, or other charges.

Article 9.2. Relation to other Chapters

1. In the event of any inconsistency between this Chapter and another Chapter, the other Chapter shall prevail to the extent of the inconsistency.
2. A requirement by a Party that a service supplier of the other Party post a bond or other form of financial security as a condition of the cross-border supply of a service does not of itself make this Chapter applicable to measures adopted or maintained by the Party related to such cross-border supply of the service. This Chapter applies to measures adopted or maintained by the Party related to the posted bond or financial security, to the extent that such bond or financial security is a covered investment.
3. This Chapter does not apply to measures adopted or maintained by a Party to the extent that they are covered by Chapter Twelve (Financial Services).

Article 9.3. National Treatment

1. Each Party shall accord to investors of the other Party treatment no less favorable than that it accords, in like circumstances, to its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory.
2. Each Party shall accord to covered investments treatment no less favorable than that it accords, in like circumstances, to investments in its territory of its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments.

Article 9.4. Most-favored-nation Treatment (2)

1. Each Party shall accord to investors of the other Party treatment no less favorable than that it accords, in like circumstances, to investors of a non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory.
2. Each Party shall accord to covered investments treatment no less favorable than that it accords, in like circumstances, to investments in its territory of investors of a non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments.

Article 9.5. Minimum Standard of Treatment

1. Each Party shall accord to covered investments treatment in accordance with customary international law minimum standard of treatment of aliens, (3) including fair and equitable treatment and full protection and security.
2. The concepts of "fair and equitable treatment" and "full protection and security" in paragraph 1 do not require treatment in addition to or beyond that which is required by that standard, and do not create additional substantive rights. The obligation in paragraph 1 to provide:
(a) "fair and equitable treatment" includes the obligation not to deny justice in criminal, civil, or administrative adjudicatory proceedings in accordance with the principle of due process embodied in the principal legal systems of the world; and
(b) "full protection and security" requires each Party to provide the level of police protection required under customary international law.
3. A determination that there has been a breach of another provision of this Agreement, or of a separate international agreement, does not establish that there has been a breach of this Article. 2 For greater certainty, Article 9.4 shall be interpreted in accordance with Annex 9A. 

Article 9.6. Senior Management and Boards of Directors

1. Neither Party may require that an enterprise of that Party, that is a covered investment, appoint to senior management positions natural persons of any particular nationality.
2. A Party may require that a majority of the board of directors, or any committee thereof, of an enterprise of that Party that is a covered investment, be of a particular nationality, or resident in the territory of the Party, provided that the requirement does not materially impair the ability of the investor to exercise control over its investment.

Article 9.7. Performance Requirements

1. Neither Party may impose or enforce any requirement, or enforce any commitment or undertaking4, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party:
(a) to export a given level or percentage of goods or services;
(b) to achieve a given level or percentage of domestic content;
(c) to purchase, use, or accord a preference to goods produced or services provided in its territory, or to purchase goods or services from persons in its territory;
(d) to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investment;
(e) to restrict sales of goods or services in its territory that such investment produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings;
(f) to transfer technology, (5) a production process, or other proprietary knowledge to a person in its territory; or
(g) to supply exclusively from the territory of the Party the goods that such investment produces or the services that such investment provides to a specific regional market or to the world market.
2. A measure that requires an investment to use a technology to meet generally applicable health, safety, or environmental requirements shall not be construed to be inconsistent with paragraph 1(f). For greater certainty, Articles 9.3 and 9.4 apply to the measure.
3. Neither Party may condition the receipt or continued receipt of an advantage, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party, on compliance with any of the following requirements:
(a) to achieve a given level or percentage of domestic content;
(b) to purchase, use, or accord a preference to goods produced in its territory, or to purchase goods from persons in its territory;
(c) to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investment; or
(d) to restrict sales of goods or services in its territory that such investment produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings.
4. (a) Nothing in paragraph 3 shall be construed to prevent a Party from conditioning the receipt or continued receipt of an advantage, in connection with an investment in its territory of an investor of a Party or of a non-Party, on compliance with a requirement to locate production, provide a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its territory.
(b) Paragraph 1(f) does not apply where:
(i) a Party authorizes use of an intellectual property right in accordance with Article 31 of the TRIPS Agreement, and to measures requiring the disclosure of proprietary information that fall within the scope of, and are consistent with, Article 39 of the TRIPS Agreement; or
(ii) the requirement is imposed or the commitment or undertaking is enforced by a court, administrative tribunal, or competition authority, to remedy an alleged violation of competition laws or to act in a manner not inconsistent with other provisions of this Agreement.(6)
(c) Provided that such measures are not applied in an arbitrary, discriminatory, or unjustifiable manner, and provided that such measures do not constitute a disguised restriction on international trade or investment, paragraphs 1(b), (c), and (f), and 3(a) and (b), shall not be construed to prevent a Party from adopting or maintaining measures, including environmental measures:
(i) necessary to secure compliance with laws and regulations that are not inconsistent with this Agreement; (ii) necessary to protect human, animal, or plant life or health; or
(iii) necessary to the conservation of living or non-living exhaustible natural resources.
5. Paragraphs 1 and 3 shall not apply to any commitment, undertaking, or requirement other than those set out in those paragraphs.
6. The provisions of:
(a) paragraphs 1(a), (b), and (c), and 3(a) and (b) shall not apply to qualification requirements for goods or services with respect to export promotion and foreign aid programs;
(b) paragraphs 1(b), (c), (f), and (g), and 3(a) and (b) shall not apply to procurement as defined in Article 16.20 (Definitions); and (c) paragraphs 3(a) and (b) shall not apply to requirements imposed by an importing Party related to the content of goods necessary to qualify for preferential tariffs or preferential quotas.
7. Nothing in this Article shall be construed to derogate from the rights and obligations of the Parties under the TRIMs Agreement.
8. This Article does not preclude enforcement of any commitment, undertaking, or requirement between private parties, where a Party did not impose or require the commitment, undertaking, or requirement. 

Article 9.8. Non-conforming Measures

1. Articles 9.3, 9.4, 9.6, and 9.7 do not apply to:
(a) any existing non-conforming measure that is maintained by a Party at:
(i) the central level of government, as set out by that Party in its Schedule set out in Annex I; or
(ii) a local level of government;
(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or (c) an amendment to any non-conforming measure referred to in subparagraph (a) to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Article 9.3, 9.4, 9.6, or 9.7.
2. Articles 9.3, 9.4, 9.6, and 9.7 do not apply to measures that a Party adopts or maintains with respect to sectors, subsectors, or activities, as set out in its Schedule set out in Annex II.
3. Neither Party may, under any measure adopted after the date of entry into force of this Agreement and covered by its Schedule set out in Annex II, require an investor of the other Party, by reason of its nationality, to sell or otherwise dispose of an investment existing at the time the measure becomes effective.
4. Articles 9.3 and 9.4 do not apply to any measure that is an exception to, or derogation from, a Party's obligations under the TRIPS Agreement, as specifically provided in that agreement.
5. Articles 9.3, 9.4, and 9.6 shall not apply to:
(a) procurement as defined in Article 16.20 (Definitions); or
(b) subsidies or grants provided by a Party, including government-supported loans, guarantees, and insurance.

Article 9.9. Health, Safety, and Environmental Measures

1. Nothing in this Chapter shall be construed to prevent a Party from adopting, maintaining, or enforcing any measure otherwise consistent with this Chapter that it considers appropriate to ensure that investment activity in its territory is undertaken in a manner sensitive to environmental concerns.
2. The Parties recognize that it is inappropriate to encourage investment by relaxing their health, safety, or environmental measures. Accordingly, a Party should not waive or otherwise derogate from, or offer to waive or otherwise derogate from, such measures as an encouragement for the establishment, acquisition, expansion, or retention in its territory of an investment of an investor. If a Party considers that the other Party has offered such encouragement, the Parties shall consult, upon request, with a view to avoiding any such encouragement.

Article 9.10. Special Formalities and Information Requirements

1. Nothing in Article 9.3 shall be construed to prevent a Party from adopting or maintaining a measure that prescribes special formalities in connection with covered investments, such as a requirement that covered investments be legally constituted under the laws or regulations of the Party, provided that such formalities do not materially impair the protections afforded by a Party to investors of the other Party and covered investments in accordance with this Chapter.
2. Notwithstanding Articles 9.3 and 9.4, a Party may require an investor of the other Party or its covered investments to provide information on that investment solely for informational or statistical purposes. The Party shall protect any confidential business information from any disclosure that would prejudice the competitive position of the investor or the covered investment. Nothing in this paragraph shall be construed to prevent a Party from otherwise obtaining or disclosing information in connection with the equitable and good faith application of its law.

Article 9.11. Compensation for Losses

1. Each Party shall accord to investors of the other Party, and to covered investments, non-discriminatory treatment with respect to measures it adopts or maintains related to losses suffered by investments in its territory owing to armed conflict or civil strife.
2. Paragraph 1 shall not apply to existing measures related to subsidies or grants that would be inconsistent with Article 9.3 but for Article 9.8.5(b).

Article 9.12. Expropriation

1. Neither Party may expropriate or nationalize a covered investment either directly or indirectly through measures equivalent to expropriation or nationalization (hereinafter referred to as the "expropriation"), except:
(a) for a public purpose8;
(b) in a non-discriminatory manner;
(c) on payment of prompt, adequate, and effective compensation; and (d) in accordance with due process of law and Article 9.5.
2. The compensation referred to in paragraph 1(c) shall:
(a) be paid without delay;
(b) be equivalent to the fair market value of the expropriated investment immediately before the expropriation took place ("date of expropriation"); 
(c) not reflect any change in value occurring because the intended expropriation had become known earlier; and
(d) be fully realizable and freely transferable.
3. If the fair market value is denominated in a freely usable currency, the compensation referred to in paragraph 1(c) shall be no less than the fair market value on the date of expropriation, plus interest at a commercially reasonable rate for that currency, accrued from the date of expropriation until the date of payment.
4. If the fair market value is denominated in a currency that is not freely usable, the compensation referred to in paragraph 1(c) – converted into the currency of payment at the market rate of exchange prevailing on the date of payment – shall be no less than:
(a) the fair market value on the date of expropriation, converted into a freely usable currency at the market rate of exchange prevailing on that date, plus
(b) interest, at a commercially reasonable rate for that freely usable currency, accrued from the date of expropriation until the date of payment.
5. The investor affected shall have a right, under the law of the Party making the expropriation, to promptly review, by a judicial or other independent authority of that Party, its case and the valuation of its investment in accordance with the principles set out in this Article.
6. This Article does not apply to the issuance of compulsory licenses granted in relation to intellectual property rights in accordance with the TRIPS Agreement, or to the revocation, limitation, or creation of intellectual property rights, to the extent that such issuance, revocation, limitation, or creation is consistent with Chapter Seventeen (Intellectual Property Rights).

Article 9.13. Transfers (9)

1. Each Party shall permit all transfers related to a covered investment to be made freely and without delay into and out of its territory. Such transfers include:
(a) contributions to capital, including the initial contribution;
(b) profits, dividends, interest, capital gains, royalty payments, management fees, technical assistance, and other fees, returns in kind, and other amounts derived from the investment;
(c) proceeds from the sale of all or any part of the covered investment or from the partial or complete liquidation of the covered investment;
(d) payments made under a contract entered into by the investor, or the covered investment, including payments made pursuant to a loan agreement;
(e) payments made in accordance with Articles 9.11 and 9.12; and
(f) payments arising under Section B.
3. Notwithstanding paragraphs 1 and 2, a Party may prevent a transfer through the equitable, non-discriminatory, and good faith application of its laws related to:
(a) bankruptcy, insolvency, or the protection of the rights of creditors;
(b) issuing, trading, or dealing in securities, futures, options, or derivatives;
(c) criminal or penal offenses;
(d) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities; or
(e) ensuring compliance with orders or judgements in judicial or administrative proceedings.
4. Neither Party may require its investors to transfer or penalize its investors that fail to transfer the income, earnings, profits, or other amounts derived from, or attributable to, investments in the territory of the other Party.
5. Paragraph 4 shall not be construed to prevent a Party from imposing any measure through the equitable, non-discriminatory, and good faith application of its laws related to the matters set out in subparagraphs (a) through (e) of paragraph 3.
6. Notwithstanding paragraph 1, a Party may restrict transfers in kind in circumstances where it could otherwise restrict transfers under this Agreement and as set out in paragraph 3.

Article 9.14. Denial of Benefits

Subject to prior notification and consultations, and in accordance with the procedures set out in Article 21.2 (Notification and Provision of Information), a Party may deny the benefits of this Chapter to an investor of the other Party that is an enterprise of such Party and to investments of such investor where the Party establishes that the enterprise is owned or controlled by persons of a non-Party, or of the denying Party, and has no substantive business operations in the territory of the other Party.

Article 9.15. Subrogation