5. Israel may determine that certain traffic products, as defined in Article 97 of the Law of Licensing of Services and Professions in the Motor Vehicle Sector, 2016, are made for marketing in the Israeli market alone.
6. Nationality or residency of Israel is required for licensure as a motor vehicle appraiser.
7. Nationality or residency of Israel is required for licensure as a professional manager of a motor vehicle service center (garage) and at least one licensed professional manager is required to be available on the premises in order to operate a motor vehicle garage.
Note 1:“Traffic Product” as defined in Article 2 of the Law of Licensing of Services and Professions in the Motor Vehicle Sector, 2016, is an accessory, a part, system of parts, an appliance with the exception of an appliance that is a work tool used by garages or manufacturers only, a device or substance that is a liquid, solid or gas, that is used or designed to be used for assembly, maintenance or the proper operation of a motor vehicle or for ensuring the safety of a motor vehicle or for ensuring user safety or for his convenience.
Note 2:For the purposes of this Schedule, it is understood that director general is an equivalent position to chief executive officer.
Note 3:For the purposes of this Schedule, “interested party”, as defined in Article 1 of the Companies Law, 1999, is:
(a) a substantial shareholder;
(b) a person with the power to appoint one or more
members of the board of directors or the director general; or
(c) a person who serves in the enterprise as a member of the board of directors or as a director general.
20. Sector : Transportation
Sub-sector: Driving Licenses and Road Transport Services, including Passenger Transportation Services, Motor Vehicle Mechanics Safety Officer
Obligations concerned:
National Treatment (Articles 9.3 and 10.2)
Local presence (Article 10.5)
Measure:
Road Transport Regulations, 1961 (Articles 175-190, 213-213H, 216, 221, 221A, 247, 251, 531, 567, 567B and 582)
Road Transport Ordinance (Article 14)
Supervision Order on Commodities and Services (Purchase, Installation and Maintenance of Taxi Meters), 1984
Companies Law, 1999 (Article 1)
Description:
Cross-Border Trade in Services and Investment
1. Israeli residency or nationality is required to obtain certain types of driving licenses, in accordance with Articles 175-185, 189 and 190 of Road Transport Regulations, 1961.
2. Israeli residency or nationality is required for obtaining a taxi operator license.
3. Israeli residency or nationality is required for an individual working in installation or maintenance of taxi meters and an enterprise operating in installation or maintenance of taxi meters must have at least one interested party, as defined in Article 1 of the Companies Law, 1999, who is a national or resident of Israel.
4. Israeli residency or nationality is required for authorization to work as a motor vehicle mechanics safety officer.
21. Sector: Road transportation services
Sub-Sector:
Transportation of freight
Transportation of furniture
Rental of commercial vehicles with operator
Industry Classification: CPC 71233, 71239, 71234, 7124
Obligations Concerned:
National Treatment (Articles 9.3 and 10.2)
Local presence (Article 10.5)
Measures:
Road Transport Regulations, 1961 (Article 189)
Freight Services Regulations, 2001 (Article 2 and 24)
Law of Transport Services, 1997
Description:
Cross-Border Trade in Services and Investment
1. Israeli residency or nationality is required in order to obtain a license to transport freight over 10 tons or hazardous materials of any weight.
2. The professional manager and the operator of haulage shall be a national or resident of Israel.
22. Sector : Transportation
Sub-sector: Customs Agents
Industry Classification: CPC 749**
Obligations Concerned:
National Treatment (Articles 9.3 and 10.2)
Local presence (Article 10.5)
Measures: Customs Agent Law, 1964 (Articles 4 and 5)
Description:
Cross-Border Trade in Services and Investment
1. Israeli residency or nationality is required to obtain a Customs agent’s license.
2. All customs firms, including foreign customs firms, must employ at least one Israeli licensed custom agent as an active manager, clerk or as a partner.
Annex I. SCHEDULE OF THE REPUBLIC OF KOREA
EXPLANATORY NOTE
1. The Schedule of Korea to this Annex sets out, pursuant to Articles 9.12 (Non- Conforming Measures) and 10.6 (Non-Conforming Measures), Korea’s existing measures that are not subject to some or all of the obligations imposed by:
(a) Article 9.3 (National Treatment) or 10.2 (National Treatment);
(b) Article 9.4 (Most-Favoured-Nation Treatment) or 10.3 (Most-Favoured- Nation Treatment);
(c) Article 10.4 (Market Access);
(d) Article 10.5 (Local Presence);
(e) Article 9.9 (Performance Requirements); or
(f) Article 9.10 (Senior Management and Boards of Directors)
2. Each Schedule entry sets out the following elements:
(a) Sector, refers to the sector for which the entry is made;
(b) Obligation Concerned, specifies the obligation(s) referred to in paragraph 1 that, pursuant to Articles 9.12.1(a) and 10.6.1(a), shall not apply to the non- conforming aspects of the law, regulation, or other measures, as set out in paragraph 3;
(c) Measures, (1) identifies the laws, regulations, or other measures for which the entry is made. A measure cited in the Measures element:
(i) means the measure as amended, continued, or renewed as of the date of entry into force of this Agreement; and
(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and
(d) Description, sets out commitments, if any, for liberalization on the date of entry into force of this Agreement, and the remaining non-conforming aspects of the measure for which the entry is made.
3. In the interpretation of a Schedule entry, all elements of the entry shall be considered.
An entry shall be interpreted in light of the relevant Articles of the Chapters against which the entry is made. To the extent that:
(a) the Measures element is qualified by a liberalization commitment from the Description element, the Measures element as so qualified shall prevail over all other elements; and
(b) the Measures element is not so qualified, the Measures element shall prevail over all other elements, unless any discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that discrepancy.
4. In accordance with Articles 9.12.1(a) and 10.6.1(a) and subject to Articles 9.12.1(c) and 10.6.1(c), the Articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming aspects of the law, regulation, or other measure identified in the Measures element of that entry.
5. Where Korea maintains a measure that requires that a service provider be a citizen, permanent resident, or resident of its territory as a condition to the provision of a service in its territory, a Schedule entry for that measure taken with respect to Article 10.2 (National Treatment), 10.3 (Most-Favoured-Nation Treatment), or 10.5 (Local Presence) shall operate as a Schedule entry with respect to Article 9.3 (National Treatment), 9.4 (Most- Favoured-Nation Treatment), or 9.9 (Performance Requirements) to the extent of that measure.
6. A foreign person means a foreign national or an enterprise organized under the laws of another country.
7. The Schedule contained in this Annex is without prejudice to Korea’s position on the supply of services that were not technically feasible at the time of entry into force of this Agreement, and the supply of new services other than those classified positively and explicitly in UN CPC provisional code.
8. For greater certainty, in accordance with Article 10.1.3, a Schedule entry for a non- conforming measure with respect to Article 10.4 (Market Access) shall also apply to measures adopted or maintained by Korea affecting the supply of a service in its territory through commercial presence, notwithstanding the heading of the Description element.
9. For greater certainty, Articles 10.2 (National Treatment) and 10.5 (Local Presence) are separate disciplines and a measure that is only inconsistent with Article 10.5 (Local Presence) need not be reserved against Article 10.2 (National Treatment)
1. Sector: Construction Services
Obligations Concerned: Local Presence (Article 10.5)
Measures:
Framework Act on the Construction Industry (Law No. 16415, April 30, 2019), Articles 9 and 10
Enforcement Decree of the Framework Act on the Construction Industry (Presidential Decree No. 29877, June 18, 2019), Article 13
Enforcement Regulations of the Framework Act on the Construction Industry (Ordinance of the Ministry of Land, Infrastructure and Transport No. 627, June 19, 2019), Article 2
Information and Communication Construction Business Act
(Law No. 16020, December 24, 2018), Article 14
Fire Fighting System Installation Business Act (Law No. 15366, February 9, 2018), Articles 4 and 5
Enforcement Decree of the Fire Fighting System Installation Business Act (Presidential Decree No. 30106, October 8, 2019), Article 2 (Table 1)
Enforcement Regulations of the Fire Fighting System Installation Business Act (Ordinance of the Prime Minister No. 1247, January 27, 2016), Article 2
Description:
Cross-Border Trade in Services
A person that supplies construction services in Korea must, prior to the signing of the first contract related to such services, establish an office in Korea.
2. Sector: Leasing, Rental, Maintenance, Repair, Sales, and Disposal Services Related to Construction Machinery and Equipment
Obligations Concerned: Local Presence (Article 10.5)
Measures:
Construction Machinery Management Act (Law No.16134, December 31, 2018), Article 21
Enforcement Decree of the Construction Machinery Management Act (Presidential Decree No.30085, September 17, 2019), Articles 13, 14, 15 and 15-2
Enforcement Regulations of the Construction Machinery Management Act (Ordinance of the Ministry of Land, Infrastructure and Transport No.659, October 18, 2019), Articles 57 through 63, 65-2 and 65-3
Description:
Cross-Border Trade in Services
A person that supplies leasing, rental, maintenance, repair, sales, and disposal services related to construction machinery and equipment must establish an office in Korea.
3. Sector: Transportation Services - Automobile Maintenance, Repair, Sales, Disposal, and Inspection Services; Automobile License Plate Issuing Services
Obligations Concerned:
Market Access (Article 10.4)
Local Presence (Article 10.5)
Measures:
Automobile Management Act (Law No.16101, December 31, 2018), Articles 20, 44, 45 and 53
Enforcement Regulations of the Automobile Management Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 647, August 20, 2019), Articles 7, 8, 83, 87 and 111
Rules on the Enforcement of Comprehensive Inspection of Automobiles, Etc. (Ordinance of the Ministry of Land, Infrastructure and Transport No. 621, April 23, 2019), Article 16
Description:
Cross-Border Trade in Services
A person that supplies automobile management services (which includes used car sales, maintenance, repair, and disposal services) must establish an office in Korea and obtain authorization from the head of the si/gun/gu (municipal authorities), which is subject to an economic needs test, as appropriate.
A person that supplies automobile inspection services that is designated as a “designated repair facility” must establish an office in Korea.
A person that supplies license plate manufacturing, delivery, and seal services that is designated as a “license plate issuing agency” must establish an office in Korea.
4. Sector: Distribution Services - Wholesale and Retail Distribution of Tobacco and Liquor
Obligations concerned:
Market Access (Article 10.4)
Local Presence (Article 10.5)
Measures:
Tobacco Business Act (Law No. 14839, July 26, 2017), Articles 12, 13, and 16
Enforcement Decree of the Tobacco Business Act
(Presidential Decree No. 29015, July 3, 2018), Articles 4 and 5
Enforcement Regulations of the Tobacco Business Act
(Ordinance of the Ministry of Economy and Finance No. 700, December 7, 2018), Articles 5, 7 and 7-3
Liquor Tax Act (Law No. 16125, December 31, 2018), Articles 8 through 10
Enforcement Decree of the Liquor Tax Act (Presidential Decree No. 29531, February 12, 2019), Article 9
Notice of National Tax Service, 2018-20(June 29, 2018) and 2019-11(April 1, 2019)
Description:
Cross-Border Trade in Services
A person that supplies tobacco wholesale (including importation) or retail distribution services must establish an office in Korea.
Only designated tobacco retailers may sell tobacco to retail buyers. The sale of tobacco to retail buyers by mail or in electronic commerce is prohibited.
The distance between places of business of tobacco retailers must be at least 50 meters.
A person that supplies liquor wholesale distribution services must establish an office in Korea and obtain authorization from the head of the relevant tax office, which is subject to an economic needs test.
The sale of liquor by telephone or in electronic commerce is prohibited.
5. Sector: Agriculture and Livestock
Obligations Concerned: National Treatment (Article 9.3)
Measures:
Foreign Investment Promotion Act (Law No. 16479, August 20, 2019), Article 4
Enforcement Decree of the Foreign Investment Promotion Act (Presidential Decree No. 30170, October 29, 2019), Article 5
Regulations on Foreign Investment (Notice of the Ministry of Trade, Industry, and Energy, No. 2018-137, July 6, 2018), Attached Table 2
Description:
Investment
Foreign persons shall not: (i) invest in an enterprise engaged in rice or barley farming; or (ii) hold 50 percent or more of the equity interest of an enterprise engaged in beef cattle farming.