(c) in determining the application of paragraphs 4 and 5, a direct causal link shall also be demonstrated between the reimbursement, exemption, suspension or reduction of customs duties, and the distortion and injury or threat of injury to the domestic industry;
d) if as a result of this investigation the competent authority determines, on the basis of objective evidence, that the conditions set forth in this Article are met, the importing Party may initiate consultations with the other Party;
e) the consultation procedure shall not oblige the Parties to disclose information that has been provided on a confidential basis, the disclosure of which could impede compliance with the laws of the Party governing the matter or harm commercial interests;
f) the period of prior consultations shall begin on the day following receipt by the exporting Party of the notification of the request to initiate consultations. The period of prior consultations shall be 60 days, unless the Parties agree on a shorter period;
g) the notification referred to in subparagraph f) shall be made through the competent authority and shall contain sufficient background information to support the application of paragraphs 4 and 5, including:
(i) the names and addresses of the domestic producers of identical, similar or directly competitive goods that are representative of the domestic industry, their share in the domestic production of that good and the reasons that lead them to claim that they are representative of that sector;
ii) a clear and complete description of the good subject to the proceeding, the tariff subheading under which it is classified and the tariff treatment in force, as well as the description of the identical, similar or direct competitor good;
iii) the import data corresponding to each of the last 3 years that constitute the basis that such good is imported in increasing quantities, either in absolute terms, or relative to domestic production;
iv) data on the total national production of the identical, similar or direct competitor good for the last 3 years; and
(v) data demonstrating injury or threat of injury caused by imports of the good in question in accordance with subparagraphs (b) and (c);
(h) the application of paragraphs 4 and 5 may only be adopted after the conclusion of the prior consultation period;
i) during the consultation period the exporting Party shall make any comments it considers relevant;
(j) the exporting Party shall apply paragraphs 4 and 5 at the conclusion of the consultation period under subparagraph (f) if any of the circumstances set out in paragraph 7 are found to exist; and
(k) in the event that the exporting Party fails to apply paragraphs 4 and 5 under subparagraph (j), the importing Party shall have the right to withdraw the preferential tariff treatment provided for in this Agreement for that good.
12. The Parties shall consult annually on the implementation of this Article.
Article 3-05. Customs Valuation
1. The customs value of an imported good shall be determined in accordance with the principles of the Customs Valuation Code.
2. The dutiable base on which customs duties shall be applied to goods imported from the other Party shall not be the value of a good produced in the territory of the importing Party, nor an arbitrary or fictitious value.
Article 3-06. Temporary Importation of Goods.
For the purposes of this Article, the following definitions shall apply:
goods imported for sporting purposes: sporting equipment for use in competitions, sporting events or training in the territory of the Party into which it is imported;
goods intended for exhibition or demonstration: goods intended for exhibition or demonstration, including components, auxiliary apparatus and accessories;
advertising films: recorded visual media, with or without sound, consisting essentially of images showing the nature or functioning of goods or services offered for sale or rental by a person established or resident in the territory of a Party, provided that the films are suitable for exhibition to potential customers, but not for dissemination to the general public; and are imported in packages containing not more than one copy of each film, and are not part of a larger consignment.
2. Each Party shall authorize the temporary importation without payment of customs duty of at least the following goods that are imported from the territory of the other Party, regardless of their origin and regardless of whether like, directly competitive or substitute goods are available in the territory of the Party:
(a) professional equipment necessary for the exercise of the activity, trade or profession of a business person;
b) press equipment or equipment for the broadcasting of radio or television signals and cinematographic equipment;
c) goods imported for sporting purposes, or for exhibition or demonstration; and
d) commercial samples and advertising films.
3. Except as otherwise provided in this Agreement, a Party may subject the temporary importation without payment of customs duty of a good of the type referred to in paragraph 2(a), (b) or (c) to any of the following conditions, provided that no additional conditions may be adopted:
(a) the good is imported by a person of the other Party or its representative;
(b) the good is used exclusively by the person or by his representative, or under his personal supervision, in the course of his trade, craft or profession;
c) that the property is not sold, leased or otherwise disposed of while it remains in its territory;
d) that the good is accompanied by a bond not exceeding 110% of the charges that would be due, if any, for entry or final importation, or other form of security, refundable at the time of exportation of the good, except that no bond may be required for customs duties on an originating good;
e) that the good is capable of identification when exported;
f) that the good is exported upon departure of the person or his representative, or within a period of time that reasonably corresponds to the purpose of the temporary importation;
g) that the good is imported in quantities not greater than is reasonable in accordance with its intended use, and
h) that the good is re-exported in the same condition in which it was imported.
4. Except as otherwise provided in this Agreement, the Parties may subject the temporary importation without payment of customs duty of a good of the type referred to in paragraph 2(d) to any of the following conditions, provided that no additional conditions may be adopted:
(a) the good is imported only for the purpose of lifting orders for goods or services to be supplied from the territory of the other Party or from another non-Party;
(b) the good is not for sale or lease and is used only for demonstration or exhibition while remaining in its territory;
c) the good is capable of identification when exported;
(d) the good is exported within a period of time reasonably corresponding to the purpose of the temporary importation;
e) that the good is imported in quantities not greater than is reasonable in accordance with its intended use, and
(f) the good is accompanied by a bond not exceeding 110% of the charges, if any, that would be due on entry or final importation, or such other form of security, refundable upon exportation of the good, except that no bond may be required for customs duties on an originating good.
5. Where a good that is temporarily imported fails to comply with any of the conditions that a Party imposes under paragraphs 3 and 4, that Party may apply the customs duties and any other charges that would be due on the entry or final importation of the good.
Article 3-07. Duty-free Import for Samples with No Commercial Value
1. For the purposes of this article, samples of no commercial value shall be understood to mean goods representative of a class of goods already produced or a model the production of which is planned. It does not include identical goods imported by the same person or sent to a single consignee, in such quantity that, taken as a whole, they constitute an ordinary import subject to the payment of customs duties.
2. Each Party shall authorize the importation free of customs duties of samples of no commercial value from the territory of the other Party.
Section C. Non-tariff Measures
Article 3-08. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, neither Party may adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except as provided in Article XI of the GATT, including its interpretative notes. For this purpose, Article XI of the GATT and its interpretative notes are incorporated into and made an integral part of this Agreement.
2. The Parties understand that the GATT rights and obligations embodied in paragraph 1 prohibit, in all circumstances in which any other type of restriction is prohibited, the establishment of minimum export and import prices, except as permitted for the application of sanctions and countervailing duty commitments.
3. Where a Party adopts or maintains a prohibition or restriction on the importation of goods from a non-Party or the exportation of goods destined for a non-Party, nothing in this Agreement shall be construed to prevent it from:
(a) limiting or prohibiting the importation of the goods of the non-Party from the territory of the other Party; or
b) requiring as a condition for the exportation of such goods from the Party to the territory of the other Party that the goods not be re-exported to the non-Party, directly or indirectly, without being processed or manufactured in the territory of the other Party in a manner that results in a substantial change in the value, form or use of the goods, or in the production of another good.
4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, at the request of either Party, the Parties shall consult with a view to preventing the measure from interfering with or causing undue distortions in the pricing, marketing and distribution mechanisms in the other Party.
5. Paragraphs 1 through 4 do not apply to the measures set out in the Annex to Articles 3-02 and 3-08.
Article 3-09 . Customs Duties
Upon entry into force of this Agreement, the Parties shall eliminate all their customs duties on originating goods for the service rendered by customs.
Article 3-10. Export Taxes
1. Salvo lo dispuesto en este artículo, ninguna Parte adoptará ni mantendrá impuesto, gravamen o cargo alguno a la exportación de un bien a territorio de la otra Parte, a menos que éstos también se adopten o mantengan sobre ese bien cuando esté destinado al consumo interno.
2. Cada Parte podrá mantener o adoptar un impuesto, gravamen u otro cargo sobre la exportación de los bienes alimenticios básicos listados en el párrafo 3, sobre sus ingredientes, o sobre los bienes de los cuales esos productos alimenticios se derivan, si ese impuesto, gravamen o cargo es utilizado:
a) para que los beneficios de un programa interno de asistencia alimentaria que incluya esos alimentos sean recibidos sólo por los consumidores en la Parte que aplica ese programa; o
b) para asegurar la disponibilidad de cantidades suficientes de los bienes alimenticios destinados a los consumidores nacionales, o de cantidades suficientes de sus ingredientes o de los bienes de que esos bienes alimenticios se derivan, destinados a una industria procesadora nacional, cuando el precio interno de esos bienes alimenticios sea mantenido por debajo del precio mundial, como parte de un programa gubernamental de estabilización, siempre que esos impuestos, gravámenes o cargos no tengan el efecto de aumentar la protección otorgada a la industria nacional y se mantengan sólo por el periodo necesario para conservar la integridad de ese programa.
3. Para efectos del párrafo 2, "bienes alimenticios básicos" significa: Aceite vegetal Arroz Atún en lata Azúcar blanca Azúcar morena Bistec o pulpa de res Café soluble Café tostado Carne molida de res
15 Cerveza Chile envasado Chocolate en polvo Concentrado de pollo Frijol Galletas dulces populares Galletas saladas Gelatinas Harina de maíz Harina de trigo Hígado de res Hojuelas de avena Huevo Jamón cocido Leche condensada Leche en polvo Leche en polvo para niños Leche evaporada Leche pasteurizada Manteca vegetal Margarina Masa de maíz Pan blanco Pan de caja Pasta para sopa Puré de tomate Refrescos embotellados Retazo con hueso Sal Sardina en lata Tortilla de maíz
4. No obstante lo dispuesto en el párrafo 1, cada Parte podrá adoptar o mantener un impuesto, gravamen o cargo a la exportación de cualquier bien alimenticio a territorio de la otra Parte si ese impuesto, gravamen o cargo se aplica temporalmente para aliviar un desabasto crítico de ese bien alimenticio. Para propósitos de este párrafo, "temporalmente" significa hasta un año, o un periodo mayor acordado por las Partes.
Article 3-11. Country of Origin
The annex to this article applies to measures related to country of origin.
Article 3-12. Distinctive Products
The annex to this article applies to the products listed in this article.
Section D. Publication and Notification
Article 3-13. Publication and Notification
1. Each Party shall promptly publish and notify the laws, regulations, procedures and administrative provisions of general application which it has put into force and which relate to the classification, valuation or customs valuation of goods, rates of customs duties, taxes or other charges or to import or export measures, restrictions or prohibitions, or the transfer of payments relating thereto, or to the sale, distribution, transportation, insurance, storage, inspection, exhibition, processing, mixing or other use of such goods, so that governments and interested traders or persons of the other Party may be aware of them. Each Party shall also publish agreements relating to international trade policy and in force between the government or a government agency of that Party and the government or a government agency of the other Party.
No Party shall apply prior to their official publication any measure of a general nature adopted by that Party that has the effect of increasing a customs duty or other charge on the importation of goods of the other Party under established and uniform usage, or that imposes a new or more burdensome measure, restriction or prohibition on imports of goods of the other Party or on transfers of funds relating thereto.
3. Each Party shall identify in terms of the tariff items and nomenclature corresponding to them according to their respective tariffs, the measures, restrictions or prohibitions on the importation or exportation of goods for reasons of national security, public health, preservation of flora or fauna, preservation of the environment, plant and animal health, standards, labels, international commitments, public order requirements or any other regulations.
Chapter IV. Agricultural Sector and Animal and Plant Health and Phytosanitary Measures
Section A. Agricultural Sector
Article 4-01. Definitions
For the purposes of this section, the following definitions shall apply:
agricultural good: a good classified in any of the following chapters, headings or subheadings of the Harmonized System:
(Descriptions are provided for reference purposes only.)
Chapters 01 to 24, (excluding fish and fish products)
subheading 2905.43, mannitol
subheading 2905.44, sorbitol
subheading 2918.14, citric acid
subheading 2918.15, salts and esters of citric acid
subheading 2936.27, vitamin C and its derivatives
heading 33.01, essential oils
Subheadings 35.01 to 35.05, albuminoidal substances, modified starches and modified starch products
subheading 3809.10, dressings and finishing products
subheading 3823.60, sorbitol n.e.s.
headings 41.01 to 41.03, hides, skins and leather
heading 43.01, raw furskins
headings 50.01 to 50.03, raw silk and silk waste
headings 51.01 to 51.03, wool and fur
heading 52.01 to 52.03, raw cotton, cotton waste and cotton waste, carded or combed
heading 53.01, raw flax
heading 53.02, raw hemp
fish and fish products: fish, crustaceans, molluscs or any other aquatic invertebrates, marine mammals and their derivatives, classified in any of the following chapters, headings or subheadings of the Harmonized System:
(Descriptions are provided for reference purposes).
chapter 03, fish and crustaceans, molluscs and other aquatic invertebrates
heading 05.07, ivory, tortoiseshell, marine mammals, horns, antlers, hooves, hoofs, claws, claws and beaks, and their products
heading 05.08, coral and similar products
heading 05.09, natural sponges of animal origin
heading 05.11, products of fish, crustaceans, molluscs or any other marine invertebrate; dead animals of Chapter 03
heading 15.04, fats and oils and their fractions, of fish or marine mammals
heading 16.03, extracts and juices other than those of meat
heading 16.04, Prepared or preserved fish or fish preserves
heading 16.05, Prepared or preserved crustaceans or molluscs and other marine invertebrates
subheading 2301.20, flours, meals, pellets and pellets of fish
export subsidies:
(a) the granting of direct export subsidies, including payments in kind, by governments or public agencies, to an enterprise, to an industry, to producers of an agricultural good, to a cooperative or other association of such producers or to a marketing board;
(b) the sale or placement for export of non-commercial stocks of agricultural goods by governments or public bodies at a price lower than the comparable price charged to purchasers in the domestic market for a similar agricultural good;
(c) payments for the export of agricultural goods financed by virtue of governmental action, whether or not involving a charge on government accounts, including payments financed out of the proceeds of a levy imposed on the agricultural good in question or on an agricultural good from which the exported agricultural good is derived;
(d) the provision of subsidies to reduce the costs of marketing exports of agricultural goods (other than readily available export promotion and advisory services), including handling, processing and other processing costs, and international transportation and freight costs;
(e) internal transportation and freight costs for export shipments established or imposed by governments on terms more favorable than for domestic shipments; and
(f) subsidies on agricultural goods contingent upon their incorporation into exported goods.
Article 4-02. Scope of Application
Article 4-02: Scope of application.
1. This Section applies to measures adopted or maintained by any Party relating to agricultural trade.
2. In the event of any inconsistency between the provisions of this Section and any other provision of this Agreement, the provisions of this Section shall prevail to the extent of the inconsistency.
Article 4-03: International Obligations.
A Party, before adopting a measure under an intergovernmental agreement on goods under Article XX(h) of the GATT that may affect trade in an agricultural good between the Parties, shall consult with the other Party to avoid nullifying or impairing a concession granted by that Party in its Schedule to the Tariff Break Schedule.
Article 4-04: Market Access.
1. The Parties shall facilitate access to their respective markets by reducing or eliminating barriers to trade in agricultural goods and shall not establish new barriers to trade between them.
2. The Parties waive their rights under Article XI:2(c) of the GATT and those rights embodied in Article 3-08 (Import and Export Restrictions) with respect to any measures adopted or maintained on the importation of agricultural goods.
3. From the date of entry into force of this Agreement, no Party may refund the amount of customs duties paid, or waive, suspend or reduce the amount of customs duties owed, on any agricultural good imported into its territory that is:
(a) substituted by an identical or similar agricultural good subsequently exported to the territory of the other Party; or
(b) replaced by an identical or similar agricultural good used as a material in the production of another good subsequently exported to the territory of the other Party.
4. Notwithstanding any other provision of this Agreement, with respect to agricultural goods contained in the Annexes to this Article, any Party may maintain or adopt a prohibition or restriction, or a customs tariff on the importation of such goods, in accordance with its rights and obligations under the GATT. Once a year from the entry into force of this Agreement, the Parties shall examine, through the Working Group on Agricultural Trade established in Article 4-08, the possibility of incorporating into a trade liberalization program the agricultural goods contained in those annexes.
5. Once the Parties have adopted the resolutions of the Working Group formulated under the terms of paragraph 4 for an originating agricultural good listed in the annexes to this Article, in accordance with their applicable legal procedures, that resolution shall prevail over the provisions of this Agreement for that good.
Article 4-05: Domestic Support.
1. The Parties recognize that domestic support measures may be of vital importance to their agricultural sectors, but that they may also distort trade and affect production. In this regard, the Parties shall apply domestic support as provided for in the multilateral agricultural negotiations under the WTO Agreement and, where a Party decides to support its agricultural producers, it shall endeavor to move towards domestic support policies that:
(a) have minimal or no trade or production-distorting effects; or
(b) are exempt from any domestic support reduction commitments that may be negotiated under the WTO Agreement.
2. The Parties also recognize that either Party may modify at its discretion its domestic support measures, including those that may be subject to reduction commitments, in accordance with its rights and obligations under the WTO Agreement.
Article 4-06: Export Subsidies.
1. The Parties share the objective of achieving the multilateral elimination of export subsidies on agricultural goods. In this regard, they shall cooperate in the effort to reach an agreement within the framework of the WTO Agreement.
No Party may maintain or introduce export subsidies on agricultural goods in its reciprocal trade after the entry into force of this Agreement. Likewise, the Parties waive their rights under the WTO Agreement to use export subsidies and the rights with respect to the use of such subsidies that may result from multilateral negotiations on agricultural trade within the framework of the WTO Agreement, in their reciprocal trade.
Notwithstanding the provisions of paragraph 2, if at the request of the importing Party, the Parties agree on an export subsidy on an agricultural good to the territory of the importing Party, the exporting Party may adopt or maintain such subsidy.
Article 4-07: Agricultural Technical and Marketing Standards.
Without prejudice to the provisions of Chapter IX (Standardization Measures), the Parties establish the Agricultural Technical and Marketing Standards Working Group, composed of representatives of each Party, which shall meet annually or as otherwise agreed. This Group will review the operation of agricultural grading and quality standards affecting trade between the Parties and resolve issues that may arise in connection with the operation of such standards. The Working Group shall report its activities to the Agricultural Trade Working Group established under Article 4-08.
2. Where a Party applies a technical or marketing standard with respect to the packaging, grade, quality and size of an agricultural good, that Party shall accord to an identical agricultural good originating in the other Party treatment no less favorable than that accorded to its identical agricultural goods with respect to the application of those standards.
Article 4-08: Agricultural Trade Working Group.
1. The Parties establish the Agricultural Trade Working Group, composed of representatives of each Party, which shall meet at least once a year and as agreed.
2. The functions of the Working Group include:
(a) monitoring and promoting cooperation to implement and administer this Section;
(b) establishing a forum for the Parties to consult on matters related to this Section; and
c) submitting an annual report to the Commission on the implementation of this section.