Article 2.13. Penalties
1. Each Party shall adopt or maintain measures that permit the imposition of civil or administrative penalties and, where appropriate, criminal penalties for violations of its laws and regulations governing the entry, exit or transit of goods, including, inter alia, those governing tariff classification, customs valuation, rules of origin and claims for preferential tariff treatment.
2. Each Party shall ensure that the penalties established pursuant to paragraph 1 for violation of its customs laws and regulations are imposed only on the person or persons responsible for the violation, in accordance with its relevant legislation in force.
3. The sanction to be imposed will depend on the facts and circumstances of each case and will be proportional to the degree and seriousness of the infringement committed.
Article 2.14. Use and Exchange of Documents In Electronic Format
1. The Parties shall endeavour to:
(a) use documents in electronic format for exports and imports;
(b) adopting relevant international standards, where they exist, for the types, issuance and receipt of documents in electronic form, and
(c) promote mutual recognition of documents in electronic format required for import and export issued by the authorities of each Party.
2. The Parties shall promote, based on international standards, the exchange of certificates of origin, phytosanitary and sanitary certificates, and other certificates in electronic format, which may be required in commercial transactions.
Article 2.15. Transit
1. Formalities, documentation requirements and customs controls in connection with transit traffic shall not be more burdensome than necessary for:
(a) identify the goods, and
(b) ensure compliance with traffic regulations.
2. In addition, for greater certainty, each Party shall ensure that customs controls, including inspection activities on transit operations, are in accordance with the provisions of paragraphs 1 and 2 of Article 2.9.
Article 2.16. Authorized Economic Operator
1. The customs administrations of the Parties shall promote the implementation and strengthening of their Authorized Economic Operator (AEO) programs, in accordance with the WCO Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework of Standards), and shall move towards the conclusion of Mutual Recognition Agreements of such programs with each other.
2. In this regard, the customs administrations of the Parties shall take the necessary measures to agree on Mutual Recognition benefits for their Authorized Economic Operators.
Article 2.17. Acceptance of Copies
1. Each Party shall endeavour, where appropriate, to accept copies of supporting documents required for import, export or transit formalities.
2. Where a government agency of a Party already holds the original of a supporting document, any other agency of that Party shall, where appropriate, accept in lieu of the original document a copy provided by the agency holding the original.
Article 2.18. Foreign Trade Single Window
1. The Parties shall promote the development of their respective Foreign Trade Single Windows (hereinafter referred to as "SWFs") for the expediting and facilitation of trade, in order for the authorities and commercial operators involved in foreign trade to use documentation and/or information for the import, export and transit of goods through a single point of entry, and through which applicants shall be notified of the results in a timely manner.
2. The Parties shall promote interoperability between their ECVs, in order to exchange information that expedites trade and allows the Parties to verify information on foreign trade operations carried out.
3. The Parties shall promote the following guidelines, to the extent possible, in the integrations of their ECVs:
(a) interoperability for documents and information to be determined by the Parties;
(b) compliance with the legal requirements of the Parties regarding the confidentiality and protection of the information exchanged;
(c) the availability of the information in the documents in accordance with the operating conditions to be set by the Parties;
(d) have computerized schemes that allow the transfer of information electronically between the Parties;
(e) be based on the WCO Data Model, and other international standards as appropriate, and
(f) implementation in a phased manner.
Article 2.19. Cooperation and Technical Assistance
1. The Parties recognize the importance of cooperation and technical assistance in the area of customs and trade facilitation in implementing the measures set out in this Chapter.
2. Cooperation and technical assistance under this Chapter shall be provided by the Parties, in accordance with their respective legal systems and available resources.
3. The Parties may cooperate in areas of mutual interest, which may include, but are not limited to, the following:
(a) simplification and modernisation of customs and administrative procedures;
(b) international instruments and standards applicable in the customs field;
(c) facilitation of transit and transhipment movements;
(d) relationships with business operators and other stakeholders;
(e) supply chain security, AEO programme and risk management;
(f) use of information technology, data and documentation requirements and single window systems, including work towards their future interoperability;
(g) tariff classification, origin and customs valuation, and
(h) other topics defined by mutual agreement.
4. For purposes of cooperation on the issues in this Chapter, the Parties shall promote coordination between their respective competent authorities and, where appropriate, between their National Trade Facilitation Committees.
Article 2.20. Confidentiality
The Parties undertake to treat as confidential the information they provide to each other, guaranteeing each other the level of confidentiality and data protection provided for in the legislation of the Party providing the information.
Article 2.21. Focal Points
1. The Parties, through their competent bodies, shall designate focal points responsible for monitoring issues relating to the implementation of this Chapter. Each Party shall promptly notify the other Party of any changes to its focal points, as well as the details of the relevant officials.
2. The functions of the focal points will include:
(a) facilitate discussions, requests and the timely exchange of information;
(b) consult and, if possible, coordinate with the competent governmental authorities in its territory on matters related to this Chapter, and
(c) perform such additional functions as may be agreed by the Parties.
Chapter 3. GOOD REGULATORY PRACTICE
Article 3.1. Definitions
For purposes of this Chapter:
Regulatory impact analysis (RIA) means the systematic process of analysis, based on evidence, that seeks to evaluate, from the definition of a problem, the possible impacts of the available action alternatives to achieve the intended objectives, in order to guide and assist decision making;
regulatory authority means any competent regulatory authority of the executive branch;
Good regulatory practices refers to the use of tools in the process of planning, elaboration, adoption, implementation, review and monitoring of regulatory measures;
public consultation is the participatory mechanism, of a non-binding consultative nature, by means of which, during a reasonable period of time, the competent regulatory authority collects data and opinions from society in a regulatory process, and
regulatory measure refers to laws and decrees of general application adopted by regulatory authorities and with which compliance is mandatory.
Article 3.2. General Objective
The objective of this Chapter is to strengthen and encourage the regulatory authorities of the Parties to adopt good regulatory practices in order to promote a transparent regulatory environment, with predictable procedures and steps for their citizens and economic operators.
Article 3.3. Implementation of Good Regulatory Practice
1. Each Party shall encourage its respective regulatory authorities to subject proposed amendments and new draft regulatory measures to a public consultation process, for a reasonable period of time, to allow interested parties to comment on and consider the appropriateness of the proposed amendments and new draft regulatory measures.
2. Each Party shall encourage its regulatory authorities to conduct, in accordance with its legal system, to the extent possible, an RIA prior to the adoption of proposed amendments and new draft regulatory measures, which have a significant impact.
3. When conducting the RIA, each Party may take into consideration the potential impact of the proposed regulation on MSMEs.
4. Each Party shall encourage its regulatory measures to be clear, concise, and easy to understand, notwithstanding that specialized knowledge may be required if technical issues are involved.
5. In accordance with its legal system, each Party shall endeavour to ensure that regulatory authorities provide public access to new draft regulations and proposed amendments to existing regulatory measures and, to the extent possible, make this information available online.
6. Each Party shall seek to maintain or establish domestic procedures for the review of existing regulatory measures, as often as it considers appropriate, to determine whether they should be modified, expanded, simplified or repealed, with the objective of making its regulatory regime more effective.
Article 3.4. Cooperation
1. The Parties shall cooperate to facilitate the implementation of this Chapter. Cooperative activities should take into account the different needs and levels of development of each Party, and may include:
(a) exchange of experiences, dialogues, seminars and meetings between the Parties, including MSMEs;
(b) exchange of data, information and practices related to the development of new regulatory measures, including how to conduct public consultations and RIAs;
(c) strengthening cooperation, technical capacity building and other relevant activities among regulatory authorities; and
(d) such other activities as the Parties may agree.
2. Cooperative activities under this Chapter shall be carried out on mutually agreed terms, in accordance with their respective legal systems and available resources.
Article 3.5. Focal Points
1. Each Party shall designate and notify a focal point for matters arising under this Chapter. A Party shall promptly notify the other Party of any changes to its focal point.
2. Each focal point will be responsible for:
(a) provide information related to the implementation of this Chapter, upon request of the other Party;
(b) consult and coordinate with their respective regulatory authorities, as appropriate, on matters arising under this Chapter, and
(c) meet with the other Party's point of contact as agreed, in person or by any other technological means.
Article 3.6. Relationship to other Chapters
In the event of any inconsistency between this Chapter and another Chapter of this Agreement, the other Chapter shall prevail to the extent of the inconsistency.
Article 3.7. Non-Application of Dispute Resolution
Neither Party may have recourse to the dispute settlement mechanism provided for in Chapter 17 (Dispute Settlement) with respect to any matter arising under this Chapter.
Chapter 4. SANITARY AND PHYTOSANITARY MEASURES
Article 4.1. General Provisions
In order to facilitate trade in agricultural, forestry, fishery and aquaculture goods, the Parties reaffirm their commitment to implement the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (hereinafter referred to as the "SPS Agreement") and the decisions adopted in the framework of the WTO SPS Committee, and the standards, guidelines and recommendations of the Codex Alimentarius, the World Organisation for Animal Health (OIE), and the International Plant Protection Convention (IPPC).
Article 4.2. Objectives
The objectives of this Chapter are:
(a) protect human, animal and plant life and health in the territory of each Party, while facilitating mutual trade;
(b) ensure that Parties' sanitary and phytosanitary (SPS) measures do not create unjustified barriers to trade;
(c) establish mechanisms to ensure the exchange of information and communication, enabling the Parties to provide background information without undue delay, in order for the exporting Party to carry out its procedures to propose equivalence, risk analysis, sanitary surveys, inspection and approval procedures, correctly applying the principles of the SPS Agreement;
(d) strengthening cooperation, and
(e) resolve any sanitary and phytosanitary difficulties arising from the implementation of this Chapter.
Article 4.3. Scope of Application
This Chapter applies to all SPS measures adopted or applied by a Party that may, directly or indirectly, affect trade in goods between the Parties.
Article 4.4. Establishment of Import Requirements
The importing Party undertakes to establish and report, without undue delay, sanitary and phytosanitary requirements for products of interest to the exporting Party, following the principles of the SPS Agreement.
Article 4.5. Equivalence
1. Equivalence arrangements between the Parties shall be established in accordance with the Decisions adopted by the WTO SPS Committee and the standards, guidelines and recommendations adopted by the international reference bodies of the SPS Agreement.
2. A Party may request an equivalence determination from the other Party for any measure or group of SPS measures for a product or group of products.
3. The Parties may initiate procedures for the recognition of equivalence of their SPS measures and their respective control, inspection and approval procedures.
4. In order to obtain equivalence, the exporting Party shall provide scientific and technical information to demonstrate that its SPS measure achieves the appropriate level of protection defined by the importing Party.
5. If the assessment does not result in a determination of equivalence, the importing Party shall provide in writing the scientific and technical reasons for such a determination.
Article 4.6. Risk Analysis
1. Where risk analysis is necessary, and where relevant international standards, guidelines or recommendations do not exist or are not sufficient to achieve the appropriate level of protection, it should be conducted taking into account the risk analysis techniques adopted within the framework of the international reference organizations for the SPS Agreement.
2. For the purposes of paragraph 1, the exporting Party shall provide the importing Party with all information necessary to conduct a risk analysis in accordance with the provisions of the SPS Agreement.
3. Any reassessment of risk, in situations where there is regular and fluid trade in the good concerned between the Parties, should not be a reason to interrupt trade, except in the case ofa sanitary or phytosanitary emergency.
4. The Parties may establish by mutual agreement in the SPS Committee established in Article 4.12, the procedures and timelines for conducting the risk analysis on the basis of the standards, guidelines and recommendations adopted by the international reference organizations of the SPS Agreement.
5. The results of the risk analysis or reassessment shall be reported in writing with their respective scientific and technical rationale without undue delay.
Article 4.7. Recognition of Sanitary and Phytosanitary Status
1. The exporting Party shall be responsible for objectively demonstrating to the importing Party the pest or disease free or low or low pest or disease prevalence status of the country, areas or zones.
2. The importing Party may choose an expedited process for assessing a request for recognition of pest- or disease-free areas or areas of low pest or disease prevalence, especially in the following cases:
(a) where an area has been officially recognized as a pest or disease free area or an area of low pest or disease prevalence by a relevant international organization; or
(b) where, having suspended, as a result of an outbreak in a previously recognized area, the recognition of that area as a pest- or disease-free area or an area of low pest or disease prevalence, the importing Party has reinstated the previous status of that area in accordance with relevant international standards, guidelines or recommendations.
3. If an on-site visit is necessary for the recognition of sanitary or phytosanitary status, it shall be carried out considering the provisions of Article 4.8.4.
Article 4.8. Control, Inspection and Approval Procedures (1)
1. The implementation of control, inspection and approval procedures should not become disguised restrictions on trade between the Parties and should be carried out in accordance with the SPS Agreement and the international standards, guidelines and recommendations set by the SPS Agreement's reference bodies.
2. Any modification of the agreed sanitary or phytosanitary conditions related to market access of the importing Party, without due justification, shall be considered an unjustified barrier to trade.
3. The Parties shall agree, where possible, on the simplification of controls and verifications and the frequency of inspections on the basis of the risks involved and the international standards, guidelines and recommendations set by the SPS Agreement reference bodies.
4. If an on-site visit by the importing Party to the exporting Party is necessary for the verification of compliance with sanitary and phytosanitary requirements or for the recognition of pest- or disease-free areas or zones of low or low pest prevalence, it should follow the rules provided for in the SPS Agreement and, in particular, Annex C thereof. In particular, the visit should be limited to verifying in situ only what is technically necessary, and should not take longer than necessary or generate unnecessary costs.
5. The deadlines for the submission of the reports resulting from the audits carried out by the importing Party, the submission of comments by the exporting Party and the publication of the final report by the importing Party shall be notified through official communications between the competent authorities.
6. In the event of undue delays by either Party, the Party concerned may report them to the SPS Committee established under Article 4.12, for follow-up.
Article 4.9. General Transparency Obligations
The Parties recognize the importance of observing the notification rules of the SPS Agreement in order to strengthen transparency in trade.
Article 4.10. Information Sharing In Risk Situations
Each Party shall notify the other Party in writing within two (2) working days of any confirmed serious or significant risk to public, animal or plant health, including any emergency food control situation or situation where there is a clearly identified risk of serious health effects associated with the consumption of products of animal or plant origin.
Article 4.11. Technical Cooperation
1, The Parties agree to attach particular importance to technical cooperation to facilitate the implementation of this Chapter.
2. The competent authorities of the Parties referred to in Annex 4.1 may enter into agreements on cooperation and coordination of activities.
3. The Parties shall endeavor, where possible, to coordinate positions in regional or multilateral fora where international SPS standards, guidelines or recommendations are developed or aspects related thereto are negotiated.
Article 4.12. Committee on Sanitary and Phytosanitary Measures
1. The Parties agree to establish the Committee on Sanitary and Phytosanitary Measures (hereinafter referred to as the "SPS Committee"), for the purpose of monitoring the implementation of this Chapter. The SPS Committee shall be composed of the competent authorities and focal points of each Party as listed in Annex 4.1.
2. The SPS Committee shall meet once a year, unless otherwise agreed by the Parties, and may hold additional meetings as deemed necessary by the Parties. Meetings may be held in person, by teleconference, videoconference, or by other means that ensure an adequate level of functioning.
3. The functions of the SPS Committee shall be:
(a) exchange information on the competent authorities and contact points of each Party, detailing their areas of competence. The relevant information included in Annex 4.1 may be updated in the event of changes;
(b) facilitate cooperation and technical assistance, including cooperation in the development, implementation and enforcement of SPS measures;
(c) to consult on a written request from a Party on any matter arising under this Chapter;
(d) establish technical working groups in the fields referred to in Article 4.1 and others as deemed relevant, and
(e) keep the Bilateral Administrative Commission informed of the work of the SPS Committee.
4. To order its functioning, the SPS Committee shall establish its own rules of procedure, if possible at its first meeting. The SPS Committee may revise these rules as it deems appropriate.
Article 4.13. Consultation Mechanism
1. In the event of difficulties arising from the implementation of this Chapter, the Parties may request consultations through the contact points set out in Annex 4.1 to discuss and suggest any procedures to resolve such difficulties. Consultations may be held by electronic means, teleconference, videoconference, or other means that ensure an adequate level of discussion. The Party requesting the consultation shall prepare the corresponding minutes.
2. Upon receipt of the request, the Parties shall consult without undue delay, unless a specific time limit is agreed in the SPS Committee.
3. Where the Parties have resorted to consultations under this Article, such consultations shall be in lieu of consultations under Article 17.4 (Consultations).
Annex 4.1. COMPETENT AUTHORITIES AND FOCAL POINTS
1. For the purposes of Article 4.12.1, the competent authorities shall be: