a) the good is imported only for the purpose of lifting orders for goods or services to be supplied from the territory of another Party or from a non-Party;
b) the property is not sold, leased or otherwise disposed of, and is used only for demonstration or exhibition while it remains in its territory;
c) the good is accompanied by a bond or guarantee not exceeding 110% of the charges that would otherwise be due for entry or final importation, or other form of security, refundable at the time of exportation of the good, except that no bond or guarantee may be required for customs duties on an originating good;
d) the good is capable of identification by any reasonable means established by the customs legislation of each Party;
e) the good is re-exported within a period of time that reasonably corresponds to the purpose of the temporary importation, in accordance with the time limits established by the customs legislation of each Party;
f) the good is imported in quantities no greater than is reasonable in accordance with its intended use and in accordance with the customs legislation of each Party;
g) the good does not undergo any transformation or modification during the authorized import period, except for wear and tear due to normal use of the good; and
h) the good complies with the applicable sanitary and phytosanitary measures and standardization measures, in accordance with the provisions of Chapters V and XV, respectively.
4. Where a good is imported temporarily and does not comply with any of the conditions that a Party imposes pursuant to paragraphs 2 and 3, 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. Importation Free of Customs Duty for Samples of No Commercial Value
Each Party shall authorize the importation free of customs duty of samples of no commercial value from the territory of another Party.
Article 3-08. Customs Valuation
1. Upon entry into force of this treaty, the customs value of an imported good shall be determined in accordance with the principles of the Customs Valuation Code.
2. Pursuant to Article 13 of the Customs Valuation Code, if in the course of determining the customs value of imported goods it becomes necessary to delay the final determination of that value, the importer may remove the goods from customs if, when required to do so, he provides a deposit or other form of security as provided for in the legislation of the Party. Such form of security shall cover the payment of the taxes to which the goods would ultimately be subject.
3. Each Party shall establish the appropriate documentation to demonstrate that the customs value is correct, which shall not be greater than that which may reasonably be required to comply with Article VII of the GATT 1994.
4. When a Party uses or applies estimated prices, it shall establish mechanisms for exemption from the application of the provisions of paragraphs 2 and 3. 5. Before a Party adopts or modifies the estimated price referred to in this Article, it shall communicate to the other Parties the description of the good, its tariff item and the estimated price it intends to establish.
6. The Parties shall consult with each other to ensure that the foregoing does not hinder trade.
7. The Parties understand that the estimated price referred to in paragraph 4 shall serve only as a reference for valuation purposes, and may not be considered as a base price for the determination of internal taxes of each Party or for the application of customs duties or tariffs.
Article 3-09. Import and Export Restrictions.
1. Except as otherwise provided in this Agreement, no Party may adopt or maintain any prohibition or restriction on the importation of any good of another Party or on the exportation or sale for export of any good destined for the territory of another Party, except as provided in Article XI of the GATT 1994, including its interpretative notes. For this purpose, Article XI of the GATT 1994 and its interpretative notes are incorporated into and made an integral part of this Agreement.
2. The Parties understand that the rights and obligations of the GATT 1994 embodied in paragraph 1 prohibit export price requirements and, except as permitted for the application of countervailing duty orders and undertakings, import price requirements.
3. The Parties understand that the rights and obligations embodied in paragraph 1 prohibit, inter alia, but not limited to:
a) quantitative restrictions on imports, in accordance with the parameters of paragraph 1;
b) prices or minimum values;
c) voluntary export restraints when they do not result from an agreement consistent with the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
d) the granting of import licenses on the condition that the importer purchases domestic production;
e) the granting of import licenses on the condition that the importer exports; and
f) the granting of import licenses on the condition that the good to be imported includes a certain percentage of content from the importing Party.
4. In cases where a Party adopts or maintains a prohibition or restriction on the importation or exportation of goods from or to a non-Party, nothing in this treaty shall be construed to prevent it:
a) limit or prohibit the importation of the goods of the non-Party from the territory of another Party; or
b) require as a condition for the exportation of such goods from the Party to the territory of another Party, that the goods are not re-exported to the non-Party, directly or indirectly, without being consumed in the territory of another Party.
5. 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 avoiding undue interference or distortion in the pricing, marketing and distribution mechanisms in another Party.
6. Paragraphs 1 to 4 do not apply to the measures set forth in Annex 3 -03 and 3-09.
Article 3-10. Registration of Importers
If, as a result of the application and administration of an importers registry, a Party considers that the access of a good of that Party to the territory of the Party applying the measure is hindered or prevented, both Parties shall consult with a view to reaching a mutually satisfactory solution.
Article 3-11. Customs Measures.
Each Party shall ensure that the application, administration and publication of customs measures is in accordance with the provisions of this Agreement, its legislation and the WTO Agreement.
Article 3-12. Establishment of Specific Customs.
1. When a Party contemplates the establishment of limitations on the customs clearance of certain types of goods to specific customs offices, it shall consult with the other Parties to prevent such limitations from affecting its interests under this treaty.
2. The Party that establishes such limitations shall allow the entry of the goods into its territory, through any of the legally established border posts, in order for the goods to reach the specific customs office for the respective clearance, provided that they comply with the corresponding customs formalities.
Article 3-13. Customs Processing Fees
No Party shall increase or establish any customs duties for the service rendered by customs and shall eliminate such duties on originating goods upon the entry into force of this Agreement.
Article 3-14. Export Taxes
1. Except as provided in this Article and Annex 3-14, no Party shall adopt or maintain any tax, customs duty or charge on the export of any good destined for consumption in the territory of another Party, unless such tax, duty or charge is adopted or maintained on such good when destined for domestic consumption.
2. For purposes of this paragraph, "temporarily" means up to one year, or such longer period as the Parties may agree. Notwithstanding paragraph 1, each Party may adopt or maintain a tax, levy or charge on exports to the territory of another Party if such tax, levy or charge is applied temporarily for:
a) to alleviate a critical shortage of a food commodity; or
b) to ensure to a domestic processing industry the supply of indispensable quantities of raw materials during periods when the domestic price is maintained at a level lower than the world price in execution of a governmental stabilization plan, provided that such taxes, levies or charges:
i) The company's activities do not have the effect of increasing the exports of this domestic industry;
ii) do not have the effect of increasing the protection afforded to such domestic industry;
iil) not run counter to the non-discrimination provisions of this treaty; and
iv) be sustained only for the period necessary to maintain the integrity of the stabilization plan.
3. The Parties may hold consultations regarding the application of the provisions of this article, aimed at the application of measures that seek to avoid undesirable effects in the implementation of a domestic food aid program.
Article 3-15. Country of Origin Marking
Annex 3-15 applies to measures related to country of origin marking.
Article 3-16. Distinctive Products
With respect to distinctive products, the Parties shall be subject to the provisions of Annex 3-16.
Article 3-17. Publication and Notification
1. No Party shall apply prior to its 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 another Party, or that imposes a new or more burdensome measure, restriction or prohibition on imports, or that establishes or increases non-tariff restrictions and prohibitions on imports of goods of another Party or on transfers of funds relating thereto.
2. 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, environment, sanitary and phytosanitary, standards, labels, technical regulations, international commitments, public order requirements or any other regulations.
Article 3-18. Committee on Trade In Goods
1. The Parties establish the Committee on Trade in Goods, composed of a representative and an alternate designated by each Party. The representatives appointed by the Parties shall be officials responsible for handling matters related to this Chapter.
2. The Committee shall be established upon entry into force of the treaty and, at the request of any Party, shall hold its first meeting no later than 60 days after its establishment. The Committee shall meet ordinarily once a year, and extraordinarily at the request of any Party.
3. Except in the case of extraordinary meetings, for ordinary meetings the Committee shall be chaired successively by each Party, with the Party exercising the chairmanship calling the meeting at least 30 days in advance and proposing the agenda of the topics to be discussed. It shall also act as rapporteur.
4. When a Party considers that another Party is contravening the provisions of this Chapter, including the adoption of measures prohibited by paragraph 3 of Article 3 -09, it may request in writing an extraordinary meeting of the Committee, which shall be notified to the other Parties. The request shall contain the specific measure and the provision that the Party considers to be in violation of the treaty. The extraordinary meeting may be held when attended by at least representatives of the requesting Party and the requested Party and shall take place in the country to which the request for consultations was made. The results of the extraordinary meeting shall be without prejudice to, and shall not affect the rights of, any Party that did not participate in such meeting.
5. Unless the Parties agree otherwise, the extraordinary meeting may be considered consultations pursuant to Article 19-05. Likewise, in the event that a Party does not respond within five days from the date on which the request for the extraordinary meeting was received, does not initiate or does not intend to hold the extraordinary meeting within a period of no more than 15 days, or other mutually agreed period, from the date of receipt of the request, such Party may request the meeting of the Commission, in accordance with article 19-06.
Article 3-19. Temporary Flexibility Levels
Notwithstanding the provisions of Article 3-04, preferential tariff treatment shall be granted in accordance with Annex 3-19.
Chapter IV. AGRICULTURAL SECTOR
Article 4-01. Definitions
For the purposes of this Chapter, the following definitions shall apply:
MFN Tariff: the Most Favored Nation tariff;
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.)
Chapter, heading or subheading - Description
Chapters 01 to 24 (except fish and fish products)
Subheading 2905.43 mannitol.
Subheading 2905.44 sorbitol.
Heading 33.01 essential oils.
Headings 35.01 to 35.05 albuminoidal substances, modified starch products, starch products.
subheading 3809.10 dressings and finishing products.
subheading 3824.60 sorbitol n.e.c.
headings 41.01 to 41.03 hides and skins.
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.
headings 52.01 to 52.03 raw cotton, cotton waste and cotton waste, carded or combed. combed cotton.
heading 53.01 raw flax.
heading 53.02 raw hemp;
quota: the specific volume as quota of imports of a good in a given period, which determines the application of different tariff rates, with the lowest rate (quota tariff) being used until that volume is reached and the highest tariff rate on the over-quota thereafter;
fish and fish products: fish, crustaceans, mollusks 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, heading or subheading - Description
chapter 03 fish and crustaceans, mollusks and other aquatic invertebrates.
heading 05.07 ivory, tortoise shell, marine mammals, horns, antlers, hooves, hoofs, claws, nails, antlers, horns, antlers, horns, antlers,
hooves, hoofs, nails, claws and beaks, and products thereof.
heading 05.08 coral and similar products.
heading 05.09 natural sponges of animal origin.
heading 05.11 products of fish or crustaceans, mollusks or any other marine invertebrate; animals of fish or crustaceans, mollusks or other invertebrate marine invertebrates; dead animals of Chapter 03.
heading 15.04 fats, oils and their fractions, of fish or marine mammals.
heading 16.03 extracts and juices other than of meat.
heading 16.04 Prepared or preserved fish.
heading 16.05 Prepared or preserved crustaceans, mollusks or other marine invertebrates.
subheading 2301.20 flours, meals, pellets of fish;
export subsidies: those subsidies or grants which are contingent upon export performance, including those listed in subheading 2301.20.
including those listed in Article 9 of the Agreement on Agriculture, which is part of the WTO Agreement on Agriculture, which is part of the WTO Agreement;
tariff rate for imports under quota: the customs duty payable within the volume negotiated as a quota; and
volume negotiated as quota; and
tariff rate for out-of-quota imports: the tariff rate applied to quantities in excess of the specified quantity.
quantities in excess of the quantity specified in a quota tariff.
Article 4-02. Scope of Application
1. This Chapter applies to measures adopted or maintained by any Party relating to trade in agricultural goods.
2. In case of incompatibility between the provisions of this chapter and any other provision of this treaty, the provisions of this chapter shall prevail to the extent of the incompatibility.
Article 4-03. International Obligations
A Party, before adopting a measure under an intergovernmental agreement on goods pursuant to Article XX(h) of the GATT 1994 that may affect trade in an agricultural good between the Parties, shall consult through the Committee on Agricultural Trade, established under Article 4-10, with another Party to avoid nullifying or impairing a concession granted by that Party in its Schedule to the Tariff Break Schedule.
Article 4-04. Access to Markets
1. Notwithstanding the provisions of Article 4-02 and except as otherwise provided in this Agreement, the Parties shall progressively eliminate their customs duties on originating agricultural goods in accordance with Annex 3 -04(5).
2. The Parties, at the request of any of them, shall hold consultations through the Committee to examine the possibility of accelerating the elimination of customs tariffs provided for in the Tariff Dismantling Program.
3. Once approved by the Parties, in accordance with their legal procedures, the agreement on the accelerated elimination of the customs duty on an originating good reached between the Parties shall prevail over any customs duty or relief category identified under the Tariff Relief Program for that good.
4. Notwithstanding any other provision of this Agreement, with respect to goods excluded from the Tariff Relief Program, any Party may maintain or adopt a prohibition or restriction, or a customs duty on the importation of such goods, in accordance with its rights and obligations under the WTO Agreement.
5. Once a year after the entry into force of this Agreement, the Parties shall examine, through the Committee, the possibility of incorporating into the Tariff Discharge Program the goods excluded from it. The agreements by means of which such goods are incorporated into the Tariff Relief Program shall be adopted by the Parties in accordance with their legal procedures.
Article 4-05. Non-Tariff Measures
Except as otherwise provided in this Agreement, no Party shall adopt or maintain prohibitions or restrictions on the importation and exportation of any agricultural good, or measures of the kind that Article 4.2 of the Agreement on Agriculture, which forms part of the WTO Agreement, are required to be converted into ordinary customs duties, such as minimum import prices or values, discretionary import licensing, quantitative restrictions on imports and similar border measures other than ordinary customs duties, in agricultural trade between the Parties.
Article 4-06. Internal Aid
1. The Parties recognize that domestic support measures can be important for their agricultural sectors, but that they can also distort trade and affect production. In this regard, the Parties shall apply domestic support as provided for in the multilateral agricultural negotiations within the framework of the WTO Agreement, and when a Party decides to support its agricultural producers, it shall endeavor to move towards domestic support measures that:
a) have minimal or no trade or production distorting effects; and b) are in full conformity with the provisions of Annex 2 of the Agreement on Agriculture, which is part of the WTO Agreement.
2. To ensure transparency, the Committee shall review, at least once a year, the status of all domestic support measures in the Parties, as well as any modifications to these measures, seeking to assess compliance with the provisions of paragraph 1.
3. The application of any type of domestic support measures on an agricultural good, to the extent that they cause or threaten to cause injury to the production or trade of the other Party, may be subject to an investigation of unfair international trade practices and, if applicable, to the application of countervailing duties in accordance with Chapter IX.
Article 4-07. Domestic Food Aid
1. A Party that establishes a domestic food aid program, in accordance with paragraph 4 of Annex 2 of the Agreement on Agriculture, which is part of the WTO Agreement, shall ensure, through such instruments as it deems necessary, that the benefits of this program are received only by consumers of that Party.
2. At the request of a Party, consultations shall be held to ensure compliance with paragraph 1.
3. If no agreement is reached, the Parties shall refer to article 4 -06, paragraph 3.
Article 4-08. Export Subsidies
Five years after the entry into force of this Agreement, no Party may maintain or adopt export subsidies on agricultural goods in its reciprocal trade.
Article 4-09. Special Agricultural Safeguard
The Parties, with respect to the special agricultural safeguard, shall be subject to the provisions of Annex 4-09.
Article 4-10. Agricultural Trade Committee
1. The Parties establish the Committee on Agricultural Trade, composed of representatives of each Party, in accordance with Annex 4-10. The term for the integration of the Committee shall not exceed 90 days from the entry into force of this treaty and shall be chaired by a representative of the country hosting the meeting.
2. The Committee may invite representatives of the private or academic sectors and officials of regional and subregional organizations to participate, depending on the topic to be discussed at the meeting.
3. The Committee shall meet ordinarily twice a year and extraordinarily as often as necessary at the request of a Party. The resolutions of the Committee shall be taken by consensus.
4. For ordinary meetings, the host Party shall call the other Parties 30 days in advance, and the latter shall acknowledge receipt thereof. For extraordinary meetings, the time of convocation shall depend on the urgency of the matter to be discussed.
5. The functions of the Committee include:
a) to oversee the compliance, application and correct interpretation of the provisions of this chapter;
b) serve as a forum for the Parties to consult and resolve issues related to this chapter in coordination with the other committees, subcommittees, working groups or any other body established in the treaty;
c) make pertinent recommendations to the Commission on matters within its competence;
d) coordinate the exchange of information on trade in agricultural goods between the Parties;
e) conduct an annual evaluation of trade in agricultural goods between the Parties and submit a report to the Commission;
f) to promote cooperation in the implementation and administration of this chapter, and
g) such other functions as may be entrusted to it by the Commission.
Article 4-11. Sugar Trade.
The Parties agree to establish a Sugar Analysis Committee, in accordance with the Annex to this Agreement.