2. Customs procedures of each Party shall, where possible, conform to the standards and recommended practices of the World Customs Organization, including those of the International Convention on the Simplification and Harmonization of Customs Procedures (as amended), known as the Revised Kyoto Convention.
3. Customs authorities of the Parties shall facilitate the clearance of goods in administering their customs procedures in accordance with this Chapter.
4. Each customs authority shall provide one or more focal points, electronic or otherwise, through which its traders may submit all information as may be required by the customs authority in respect of the importation of goods.
Article 5.4. Customs Valuation
The Parties shall determine the customs value of goods traded between them in accordance with Article VII of GATT 1994 and the Customs Valuation Agreement.
Article 5.5. Tariff Classification
Each Party shall apply the International Convention on the Harmonized Commodity Description and Coding System to goods traded between the Parties.
Article 5.6. Advance Rulings
1. Each customs authority shall, subject to its customs law, provide, in writing, advance rulings in respect of the tariff classification and origin of goods (“advance rulings”) to an exporter, importer or any person making an application (“applicant”) as described in paragraph 2.
2. Subject to its customs law, each Party shall endeavour to develop procedures for advance rulings, which shall provide that an applicant with a justifiable cause may apply for an advance ruling in accordance with this Agreement before the importation of the goods in question.
3. Notwithstanding paragraph 1, a Party may reject an application for an advance ruling by promptly notifying the applicant in writing, setting forth the basis for its decision to decline to issue the advance ruling.
4. Each Party shall provide that advance rulings take effect on the date they are issued, or on another date specified in the ruling. A Party may limit the validity of advance rulings to a period determined by its customs law.
5. A Party may modify or revoke an advance ruling:
(a) upon a determination that the advance ruling was based on an error of fact or of law, or the information provided is false or inaccurate;
(b) if there is a change in customs law which is consistent with this Agreement; or
(c) if there is a change in a material fact, or circumstances on which the ruling is based.
Article 5.7. Use of Automated Systems
The customs authority of each Party shall apply information technology to support customs operations where it is practicable, cost-effective and efficient, particularly in the paperless trading context, taking into account developments on this issue within the World Customs Organization.
Article 5.8. Express Consignments
Each customs authority shall adopt procedures to expedite the clearance of express consignments while maintaining appropriate control, including:
(a) to provide for pre-arrival processing of information related to express consignments;
(b) to permit the submission of a single document covering all goods contained in an express consignment, through electronic means if possible; and
(c) to minimise, to the extent possible, the documentation required for the release of express consignments.
Article 5.9. Release of Goods
Each Party shall adopt or maintain procedures which allow goods to be released within 48 hours of arrival, and at the point of arrival without temporary transfer to warehouses or other locations, unless:
(a) the importer fails to provide any information required by the importing Party at the time of first entry;
(b) the goods are selected for closer examination by the customs authority of the importing Party through the application of risk management techniques;
(c) the goods are to be examined by an agency, other than the customs authority of the importing Party, acting under powers conferred by the domestic laws and regulations of the importing Party; or
(d) the fulfilment of all necessary customs formalities has not been able to be completed or the release is otherwise delayed by virtue of force majeure.
Article 5.10 . Risk Management
1. The Parties shall administer customs procedures so as to facilitate the clearance of low-risk goods and focus on high-risk goods.
2. To enhance the flow of goods across their borders, the customs authority of each Party shall regularly review its customs procedures.
Article 5.11. Review and Appeal
Each Party shall ensure that exporters, importers, and persons affected by customs administrative rulings, determinations or decisions have the right to at least one level of administrative or judicial review or appeal in accordance with its domestic law.
Article 5.12. Customs Cooperation
1. To the extent permitted by their domestic laws and regulations, the customs authorities of the Parties shall assist each other by providing information in relation to:
(a) the implementation and operation of this Chapter and, as appropriate, Chapter 4 (Rules of Origin);
(b) security of trade between the Parties; and
(c) such other issues as the Parties mutually determine.
2. Each customs authority shall provide the other customs authority with timely notice of any modification of its customs law or procedures that is likely to substantially affect the operation of this Chapter.
Article 5.13. Publication and Enquiry Points
1. Each customs authority shall publish, on the internet or in print form, its customs law and any administrative procedures it applies or enforces.
2. Each customs authority shall designate one or more enquiry points to deal with enquiries from interested persons from either Party on customs matters arising from the implementation of this Agreement, and provide details of such enquiry points to the other customs authority. Customs authorities of the Parties shall notify each other promptly of any amendments to the details of their enquiry points.
Chapter 6. SANITARY AND PHYTOSANITARY MEASURES
Article 6.1. Definitions
1. For the purposes of this Chapter, the definitions in Annex A of the SPS Agreement are incorporated into and made part of this Chapter, mutatis mutandis.
2. The relevant definitions developed by Codex Alimentarius Commission (“Codex”), the World Organization for Animal Health (“OIE”) and under the framework of the International Plant Protection Convention (“IPPC”) shall apply in the implementation of this Chapter.
Article 6.2. Objectives
The objectives of this Chapter are to:
(a) facilitate bilateral trade between the Parties, while protecting human, animal or plant life or health in the Area of each Party;
(b) uphold and enhance implementation of the SPS Agreement and applicable international standards, guidelines and recommendations developed by Codex, OIE and under the framework of the IPPC;
(c) provide a means to resolve, where possible, problems arising from sanitary and phytosanitary measures that may affect trade, and to expand trade opportunities;
(d) provide a means to improve communication, consultation and cooperation between the Parties on sanitary and phytosanitary matters; and
(e) strengthen collaboration between the Parties in relevant international bodies that develop international standards, guidelines and recommendations relevant to the matters covered by this Chapter.
Article 6.3. Scope
This Chapter shall apply to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties.
Article 6.4. Rights and Obligations
The Parties affirm their rights and obligations with respect to each other under the SPS Agreement.
Article 6.5. Transparency and Exchange of Information
1. The Parties confirm their commitments to implementing the transparency provisions set out in Article 7 and Annex B of the SPS Agreement and relevant Decisions and Recommendations on transparency adopted by the WTO Committee on Sanitary and Phytosanitary Measures.
2. Each Party shall notify the other in a timely and appropriate manner in writing through the contact points of any significant food safety issue or change in animal health, plant health or pest status in its Area that is relevant to existing trade.
Article 6.6. Equivalence
Each Party may make determinations of equivalence consistent with the SPS Agreement and in particular with its Article 4, relevant Decisions and Recommendations on equivalence adopted by the WTO Committee on Sanitary and Phytosanitary Measures, and relevant international standards, guidelines and recommendations from the relevant international organisations stated in the SPS Agreement.
Article 6.7. Adaptation to Regional Conditions
Each Party may make determinations in relation to regionalisation, pest- free areas, areas of low pest prevalence, zoning and compartmentalisation consistent with the SPS Agreement and in particular with its Article 6, relevant Decisions and Recommendations adopted by the WTO Committee on Sanitary and Phytosanitary Measures, and relevant international standards, guidelines and recommendations from the relevant international organisations stated in the SPS Agreement.
Article 6.8. Cooperation
1. The Parties agree to cooperate to facilitate the implementation of this Chapter.
2. The Parties may explore opportunities for further cooperation, collaboration and information exchange on sanitary or phytosanitary matters of mutual interest consistent with this Chapter, including in relevant international standard-setting bodies.
Article 6.9. Competent Authorities and Contact Points
1. The competent authorities responsible for the implementation of the measures referred to in this Chapter are listed in Annex 6.9.1
2. The contact points that have the responsibility relating to communications between the Parties under this Chapter are set out in Annex 6.9.2.
3. The Parties shall inform each other of any significant change in the structure, organisation and division of responsibility of the competent authorities or contact points.
Article 6.10. Sub-Committee on Sanitary and Phytosanitary Measures
1. The Parties hereby establish a Sub-Committee on Sanitary and Phytosanitary Measures (“Sub-Committee on SPS”) under the Committee on Trade in Goods.
2. The Sub-Committee on SPS shall be comprised of representatives of each Party who have responsibilities for the development, implementation and enforcement of sanitary and phytosanitary measures.
3. The objective of the Sub-Committee on SPS is to facilitate effective implementation of this Chapter by providing a forum for:
(a) enhancing mutual understanding of each Party’s sanitary and phytosanitary measures and the regulatory processes related to those measures;
(b) discussing matters related to the development or application of sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect human, animal and plant health and trade between the Parties;
(c) addressing any bilateral issues arising from the implementation of sanitary and phytosanitary measures between the Parties;
(d) reviewing progress on addressing bilateral issues arising from the implementation of sanitary and phytosanitary measures between the Parties;
(e) coordinating technical cooperation programmes on sanitary and phytosanitary measures;
(f) exchanging views on issues relating to the meetings of the WTO Committee on Sanitary and Phytosanitary Measures, Codex, OIE and IPPC; and
(g) holding consultations on the disputes concerning sanitary and phytosanitary matters. (3)
4. The Sub-Committee on SPS may meet at such venues and time as may be agreed by the Parties.
5. The Sub-Committee on SPS may meet in person, unless both Parties mutually agree otherwise, in which case it may meet via teleconference, videoconference or any other means that allow the fulfilment of its objectives.
6. The terms of reference of the Sub-Committee on SPS shall be determined in its first meeting.
7. The Sub-Committee on SPS shall seek to enhance and ensure cooperation between the Parties’ agencies with responsibility for sanitary and phytosanitary measures.
8. The Sub-Committee on SPS shall report its activities to the Committee on Trade in Goods.
Article 6.11. Consultations
1. At the request of a Party for consultations on any matter arising under this Chapter, the Parties shall enter into consultations. A request for consultations shall be made through the contact points listed in Annex 6.9.2
2. Consultations shall be carried out within 30 days of receiving the request for consultations given by the requesting Party, unless otherwise agreed by the Parties. Such consultations may be conducted via teleconference, videoconference or any other means agreed by the Parties.
3. The consultations under this Article shall be without prejudice to the rights and obligations of the Parties under Chapter 17 (Dispute Settlement) or under the WTO Dispute Settlement Understanding.
Chapter 7. TECHNICAL BARRIERS TO TRADE
Article 7.1. Definitions
1. For the purposes of this Chapter, TBT Agreement means the Agreement on Technical Barriers to Trade, which is part of the WTO Agreement.
2. The definitions in Annex 1 of the TBT Agreement are incorporated into and made part of this Chapter, mutatis mutandis.
Article 7.2. Objectives
The objectives of this Chapter are to increase and facilitate trade by preventing and eliminating unnecessary obstacles to trade and enhancing bilateral cooperation in accordance with the rights and obligations of the Parties with respect to the TBT Agreement.
Article 7.3. Scope
1. Except as provided in paragraphs 2 and 3, this Chapter applies to all standards, technical regulations, and conformity assessment procedures, as defined in the TBT Agreement that may, directly or indirectly, affect trade in goods between the Parties.
2. Purchasing specifications prepared by governmental bodies for production or consumption requirements of such bodies are not subject to this Chapter but are addressed in Chapter 9 (Government Procurement), according to its coverage.
3. This Chapter does not apply to sanitary and phytosanitary measures as defined under paragraph 1 of Annex A of the SPS Agreement, which are covered by Chapter 6 (Sanitary and Phytosanitary Measures).
Article 7.4. Affirmation of TBT Agreement
The Parties affirm their existing rights and obligations with respect to each other under the TBT Agreement.
Article 7.5. International Standards
1. The Parties shall use international standards, guides and recommendations, or the relevant parts of them, to the extent provided in Articles 2 and 5 and Annex 3 of the TBT Agreement, as a basis for their technical regulations and related conformity assessment procedures where relevant international standards, guides and recommendations exist or their completion is imminent, except when they or their relevant parts are ineffective or inappropriate to fulfil the legitimate objectives.
2. In determining whether an international standard, guide or recommendation as mentioned in Articles 2 and 5 and Annex 3 of the TBT Agreement exists, each Party shall base its determination on the principles set out in relevant Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade since January 1st, 1995.
Article 7.6. Trade Facilitation
The Parties shall work cooperatively in the fields of standards, technical regulations and conformity assessment procedures with a view to facilitating trade between the Parties, in particular, to identify bilateral initiatives regarding standards, technical regulations and conformity assessment procedures that are appropriate for particular issues or sectors. Such initiatives may include:
(a) cooperation on regulatory issues, such as convergence or equivalence of technical regulations and standards;
(b) alignment with international standards;
(c) reliance on a supplier’s declaration of conformity; and
(d) use of accreditation to qualify conformity assessment bodies, as well as cooperation through recognition of conformity assessment procedures.
Article 7.7. Equivalence of Technical Regulations
1. Consistent with the TBT Agreement, each Party shall give positive consideration to accepting as equivalent technical regulations of the other Party, even if these regulations differ from its own, provided that it is satisfied that these regulations adequately fulfil the objectives of its own regulations.
2. A Party shall, at the request of the other Party, explain the reasons why it has not accepted a technical regulation of the other Party as equivalent.
Article 7.8. Conformity Assessment Procedures
1. The Parties recognise that a broad range of mechanisms exist to facilitate the acceptance in the Area of a Party of the results of conformity assessment procedures conducted in the Area of the other Party. For example:
(a) accepting the declaration of conformity by a supplier in the Area of the other Party, preferably with the proof from accreditation agencies, where appropriate;
(b) promoting recognition of cooperative arrangements between accreditation bodies located in the Areas of the Parties;
(c) implementing mutual recognition of conformity assessment procedures conducted by bodies located in the Areas of the Parties;
(d) implementing unilateral recognition by one Party of the results of conformity assessment procedures performed in the Area of the other Party with respect to specific technical regulations;
(e) recognising accreditation procedures of the other Party for qualifying conformity assessment bodies in the Area of that Party;
(f) designating conformity assessment bodies located in the Area of the other Party;
(g) facilitating the consideration of a request by the other Party to recognise the results of conformity assessment procedures conducted by bodies in the Area of the other Party, including through negotiation of agreements in a sector nominated by that other Party; and
(h) utilising relevant international multilateral recognition agreements and arrangements.
2. The Parties shall exchange information on the mechanisms referred in paragraph 1 and other similar mechanisms with a view to facilitating acceptance of conformity assessment results.
3. Each Party shall accredit, approve, license, or otherwise recognise conformity assessment bodies in the Area of the other Party on terms no less favorable than those it accords to conformity assessment bodies in its Area. Where a Party accredits, approves, licenses, or otherwise recognises a body in its Area assessing conformity with a specific technical regulation or standard and refuses to accredit, approve, license, or otherwise recognise a body in the Area of the other Party assessing conformity with that technical regulation or standard, it shall, at the request of that other Party, explain the reasons for its decision.
4. Each Party shall give positive consideration to a request by the other Party to negotiate and conclude arrangements to facilitate recognition of the results of conformity assessment procedures conducted by bodies located in the Area of the other Party. Where a Party declines such a request, it shall, at the request of that other Party, explain the reasons for its decision.
Article 7.9. Transparency
1. Each Party shall ensure that the information relating to technical regulations and conformity assessment procedures is published. Such information should be made available in printed or electronic form.
2. The Parties acknowledge the importance of transparency in decision- making, including providing a meaningful opportunity for interested persons to provide comments on proposed technical regulations and conformity assessment procedures. Where a Party publishes a notice under Article 2.9 or 5.6 of the TBT Agreement, it shall:
(a) include in the notice a statement describing the objective of the proposed technical regulation or conformity assessment procedure and the rationale for the approach the Party is proposing; and
(b) transmit the proposal electronically to the other Party through the enquiry point the Party has established under Article 10 of the TBT Agreement at the same time as it notifies WTO Members of the proposal pursuant to the TBT Agreement.
Each Party should allow at least 60 days after it transmits a proposal under subparagraph (b) for the interested persons of the other Party and the other Party to make comments in writing on the proposal.
3. Where a Party makes a notification under Article 2.10 or 5.7 of the TBT Agreement, it shall at the same time transmit the notification to the other Party electronically through the enquiry point established under Article 10 of the TBT Agreement.
4. Each Party shall discuss comments received under paragraph 2 with the other Party upon request.
5. At the request of the other Party, a Party shall provide the other Party information regarding the objective of, and rationale for, a standard, technical regulation or conformity assessment procedure that the Party has adopted or is proposing to adopt.
Article 7.10. Technical Cooperation
1. Recognising the important relationship between good regulatory practices and trade facilitation, the Parties shall cooperate in the areas of standards, technical regulations and conformity assessment procedures, on a case-by-case basis, including to:
(a) promote good regulatory practice based on risk management principles;
(b) improve the quality and effectiveness of their technical regulations;
(c) develop joint initiatives for managing risks to health, safety and the environment; and
(d) build understanding and capacity to promote better regulatory compliance.
2. The Parties shall implement this Article by establishing work programmes to, inter alia:
(a) exchange information on, inter alia:
(i) regulatory systems;
(ii) incident analysis;
(iii) hazard alerts;