(f) cut trees retaining foliage;
(g) plant tissue cultures;
(h) leaves, foliage;
(i) live pollen; and
(j) bud-wood, cuttings, scions;
6. "plant products" means products of plant origin, unprocessed or having undergone simple preparation insofar as they are not plants, set out in Part 3 of Annex I-A to this Agreement;
7. "seeds" means seeds in the botanical sense, intended for planting;
8. "pests" or "harmful organisms" means any species, strain or biotype of plant, animal or pathogenic agent injurious to plants or plant products;
9. "animal disease" means a clinical or pathological manifestation in animals of an infection;
10. "aquaculture disease" means clinical or non-clinical infection with one or more of the aetiological agents of the diseases referred to in the Aquatic Animal Health Code of the OIE;
11. "infection in animals" means the situation where animals maintain an infectious agent with or without the presence of clinical or pathological manifestation of an infection;
12. "animal welfare standards" means standards for the protection of animals, developed and applied by the Parties and, as appropriate, in line with the OJE standards;
13. "appropriate level" of sanitary and phytosanitary protection means the appropriate level of sanitary and phytosanitary protection as defined in paragraph 5 of Annex A to the SPS Agreement;
14. "region" means, with regard to animal health, a zone or a region as defined in the Terrestrial Animal Health Code of the OIE and, with regard, to aquaculture a zone as defined in the Aquatic Animal Health Code of the OIE;
15. "pest free area" (PFA) means an area in which a specific pest does not occur as demonstrated by scientific evidence and in which, where appropriate, that condition is being officially maintained;
16. "regionalisation" means the concept of regionalisation as described in Article 6 of the SPS Agreement;
17. "consignment" means a number of live animals or quantity of animal products of the same type, covered by the same certificate or document, conveyed by the same means of transport, consigned by a single consignor and originating in the same exporting Party or region(s) of the Party. A consignment of animals may be composed of one or more lots. A consignment of animal products may be composed of one or more commodities or lots;
18. "consignment of plants or plant products" means a quantity of plants, plant products and/or other objects being moved from a Party to another Party and covered, when required, by a single phytosanitary certificate. A consignment may be composed of one or more commodities or lots;
19. "lot" means a number or units of a single commodity, identifiable by its homogeneity of composition and origin, and forming part of a consignment;
20. "equivalence for trade purposes" (equivalence) means the situation where the importing Party shall accept the measures listed in Annex III to this Agreement of the exporting Party as equivalent, even if those measures differ from its own, if the exporting party objectively demonstrates to the importing Party that its measures achieve the importing Partyâs appropriate level of sanitary and phytosanitary protection or acceptable level of risk;
21. "sector" means the production and trade structure for a product or category of products in a Party;
22. "sub-sectorâ" means a well-defined and controlled part of a sector;
23. "commodity" means the products or objects being moved for trade purpose, including those referred to in points 2 to 7;
24. "specific import authorisation" means a formal prior authorisation by the competent authorities of the importing Party addressed to an individual importer as a condition for import of a single consignment or multiple consignments of a commodity from the exporting Party, within the scope of this Chapter;
25. "working days" means week days except Sunday, Saturday and public holidays in one of the Parties;
26. "inspection" means the examination of any aspect of feed, food, animal health and animal welfare in order to verify that such aspect(s) comply with the legal requirements of feed and food law and animal health and animal welfare rules;
27. "plant health inspection" means official visual examination of plants, plant products or other regulated objects to determine if pests are present and/or to determine compliance with phytosanitary regulations;
28. "verification" means checking, by examination and consideration of objective evidence, whether specified requirements have been fulfilled.
Article 157. Competent Authorities
The Parties shall inform each other about the structure, organisation and division of competences of their competent authorities during the first meeting of the Sanitary and Phytosanitary Sub-Committee (SPS Sub-Committee) referred to in Article 167 of this Agreement. The Parties shall inform each other of any change of the structure, organisation and division of competences, including of the contact points, concerning such competent authorities.
Article 158. Recognition for Trade Purposes of Animal Health and Pest Status and Regional Conditions
Recognition of status for animal diseases, infections in animals or pests
1. As regards animal diseases and infections in animals (including zoonosis), the following shall apply:
(a) the importing Party shall recognise for trade purposes the animal health status of the exporting Party or its regions determined in accordance with the procedure set out in Annex V Part A to this Agreement, with respect to animal diseases specified in Annex IV-A to this Agreement;
(b) where a Party considers that it has, for its territory or a region within its territory, a special status with respect to a specific animal disease other than a disease listed in in Annex IV-A to this Agreement, it may request recognition of that status in accordance with the procedure laid down in Annex V Part C to this Agreement. The importing Party may request guarantees in respect of imports of live animals and animal products, which are appropriate to the agreed status of the Parties;
(c) the Parties recognise as the basis for trade between them the status of the territories or the regions, or the status in a sector or a sub-sector of the Parties related to the prevalence or the incidence of an animal disease other than a disease listed in Annex IV-A to this Agreement, or related to infections in animals and/or the associated risk, as appropriate, as determined by the OIE. The importing Party may request guarantees in respect of imports of live animals and animal products, which are appropriate to the defined status in accordance with the recommendations of the OIE; and
(d) without prejudice to Articles 160, 162 and 166 of this Agreement, and unless the importing Party raises an explicit objection and requests supporting or additional information, consultations and/or verification, each Party shall take without undue delay the necessary legislative and administrative measures to allow trade on the basis of points (a), (b) and (c) of this paragraph.
2. As regards pests, the following shall apply:
(a) the Parties recognise for trade purposes the pest status in respect of pests specified in Annex IV-B to this Agreement as determined in Annex V Part B to this Agreement; and
(b) without prejudice to Articles 160, 162 and 166 of this Agreement, and unless the importing Party raises an explicit objection and requests supporting or additional information, consultations and/or verification, each Party shall take without undue delay the necessary legislative and administrative measures to allow trade on the basis of point (a) of this paragraph.
Recognition of regionalisation/zoning and pest free areas (PFAs)
3. The Parties recognise the concept of regionalisation and PFAs, as specified in the International Plant Protection Convention (IPPC) of 1997 and the International Standards for Phytosanitary Measures (ISPMs) of the Food and Agriculture Organisation of the United Nations (FAO), which they agree to apply to trade between them.
4. The Parties agree that regionalisation decisions for animal and fish diseases listed in Annex IV-A to this Agreement and for pests listed in Annex IV-B to this Agreement shall be taken in accordance with the provisions of Annex V Part A and B to this Agreement.
5. As regards animal diseases, in accordance with the provisions of Article 160 of this Agreement, the exporting Party seeking recognition of its regionalisation decision by the importing Party shall notify its measures with full explanations and supporting data for its determinations and decisions. Without prejudice to Article 161 of this Agreement, and unless the importing Party raises an explicit objection and requests additional information, consultations and/or verification within 15 working days following receipt of the notification, the regionalisation decision so notified shall be deemed accepted.
The consultations referred to in the first subparagraph of this paragraph shall take place in accordance with Article 161(3) of this Agreement. The importing Party shall assess the additional information within 15 working days following receipt of the additional information. The verification referred to in the first sub-paragraph of this paragraph shall be carried out in accordance with Article 164 of this Agreement within 25 working days following receipt of the request for verification.
6. As regards pests, each Party shall ensure that trade in plants, plant products and other objects takes account, as appropriate, of the pest status in an area recognised as a PFA by the other Party. A Party seeking recognition of its PFA by the other Party shall notify its measures and, upon request, provide full explanation and supporting data for its establishment and maintenance, as guided by the FAO or IPPC, including ISPMs. Without prejudice to Article 166 of this Agreement, and unless a Party raises an explicit objection and requests additional information, consultations and/or verification within three months following the notification, the regionalisation decision for PFA so notified shall be deemed accepted.
The consultations referred to in the first sub-paragraph of this paragraph shall take place in accordance with Article 161(3) of this Agreement. The importing Party shall assess the additional information within three months following receipt of the additional information. The verification referred to in the first sub-paragraph of this paragraph shall be carried out in accordance with Article 164 of this Agreement within 12 months following receipt of the request for verification, taking into account the biology of the pest and the crop concerned.
7. After finalisation of the procedures referred to in paragraphs 4 to 6 of this Article, and without prejudice to Article 166 of this Agreement, each Party shall take, without undue delay, the necessary legislative and administrative measures to allow trade on that basis.
Compartmentalisation
8. The Parties commit to engaging in further discussions with a view to implementing the principle of compartmentalisation.
Article 159. Recognition of Equivalence
1. Equivalence may be recognised in relation to:
(a) an individual measure;
(b) a group of measures; or
(c) a system applicable to a sector, sub-sector, commodities or a group of commodities.
2. With regard to recognition of equivalence, the Parties shall follow the process set out in paragraph 3. That process shall include an objective demonstration of equivalence by the exporting Party and an objective assessment of the request by the importing Party. That assessment may include inspections or verifications.
3. Upon request of the exporting Party concerning recognition of equivalence as set out in paragraph 1 of this Article, the Parties shall without delay and no later than three months following the receipt of such request by the importing Party, initiate the consultation process which includes the steps set out in Annex VII to this Agreement. In case of multiple requests from the exporting Party, the Parties, upon request of the importing Party, shall agree within the SPS Sub-Committee referred to in Article 167 of this Agreement on a time schedule during which they shall initiate and conduct the process referred to in this paragraph.
4. Unless otherwise agreed, the importing Party shall finalise the process for recognition of equivalence referred to in paragraph 3 of this Article within 12 months after the receipt of the request of the exporting Party, including a dossier demonstrating the equivalence. That time-limit may be extended with regard to seasonal crops when it is justifiable to delay the assessment to permit verification during a suitable period of growth of a crop.
5. The importing Party determines equivalence as regards plants, plant products and other objects in accordance with the relevant ISPMs.
6. The importing Party may withdraw or suspend equivalence on the basis of any amendment by one of the Parties of measures affecting equivalence, provided that the following procedure is followed:
(a) in accordance with the provisions of Article 160(2) of this Agreement, the exporting Party shall inform the importing Party of any proposal for amendment of its measures for which equivalence of measures is recognised and the likely effect of the proposed measures on the equivalence which has been recognised. Within one month following the receipt of that information, the importing Party shall inform the exporting Party whether or not equivalence would continue to be recognised on the basis of the proposed measures;
(b) in accordance with the provisions of Article 160(2) of this Agreement, the importing Party shall inform the exporting Party of any proposal for amendment of its measures on which recognition of equivalence has been based and the likely effect of the proposed measures on the equivalence which has been recognised. Should the importing Party not continue to recognise equivalence, the Parties may agree on the conditions to re-initiate the process referred to in paragraph 3 of this Article on the basis of the proposed measures.
7. The recognition, suspension or withdrawal of equivalence rests solely with the importing Party acting in accordance with its administrative and legislative framework. That Party shall provide to the exporting Party, in writing, a full explanation and supporting data used for the determinations and decisions covered by this Article. In case of non-recognition, suspension or withdrawal of equivalence, the importing Party shall indicate to the exporting Party the required conditions on the basis of which the process referred to in paragraph 3 may be reinitiated.
8. Without prejudice to Article 166 of this Agreement, the importing Party may not withdraw or suspend equivalence before the proposed new measures of either Party enter into force.
9. Incase equivalence is formally recognised by the importing Party, on the basis of the consultation process as set out in Annex VII to this Agreement, the SPS Sub- Committee shall, in accordance with the procedure set out in Article 167(5) of this Agreement, endorse the recognition of equivalence in trade between the Parties. That endorsement decision may also provide for the reduction of physical checks at the frontiers, simplification of certificates and pre-listing procedures for the establishments, as applicable.
The status of the equivalence shall be listed in Annex X to this Agreement.
Article 160. Transparency and Exchange of Information
1. Without prejudice to Article 161 of this Agreement, the Parties shall cooperate to enhance mutual understanding of the other Party's official control structure and mechanisms tasked with the application of the measures listed in Annex III to this Agreement and of the effectiveness of such a structure and mechanism. That can be achieved, amongst others, through reports of international audits when they are made public by the Parties. The Parties can exchange information on the results of such audits or other information, as appropriate.
2. In the framework of recognition of equivalence as referred to in Article 159 of this Agreement, the Parties shall keep each other informed of legislative and procedural changes adopted in the concerned areas.
3. The necessary level of cooperation should be reached in order to facilitate transmission of legislative documents upon request of one of the Parties.
To that effect, each Party shall notify, without delay, the other Party of its contact points, including any changes to those contact points.
Article 161. Notification, Consultation and Facilitation of Communication
1. Each Party shall notify the other Party in writing within two working days of any serious or significant human, animal or plant health risk, including any food control emergencies or situations where there is a clearly identified risk of serious health effects associated with the consumption of animal or plant products, in particular:
(a) any measures affecting the regionalisation decisions referred to in Article 158 of this Agreement;
(b) the presence or evolution of any animal disease listed in Annex IV-A to this Agreement or of the regulated pests listed in Annex IV-B to this Agreement;
(c) findings of epidemiological importance or important associated risks with respect to animal diseases and pests which are not listed in Annexes IV- A and IV-B to this Agreement or which are new animal diseases or pests; and
(d) any additional measures beyond the basic requirements to their respective measures taken by the Parties to control or eradicate animal diseases or pests or protect public or plant health and any changes in prophylactic policies, including vaccination policies.
2. Notifications shall be made in writing to the contact points referred to in Article 160(3) of this Agreement.
Notification in writing means notification by mail, fax or e-mail. Notifications shall only be sent between the contact points referred to in Article 160(3) of this Agreement.
3. Where a Party has serious concerns regarding a risk to human, animal or plant health, consultations regarding the situation shall, upon request of that Party, take place as soon as possible and, in any case, within 15 working days of that request. In such situations, each Party shall endeavour to provide all the information necessary to avoid a disruption in trade, and to reach a mutually acceptable solution consistent with the protection of human, animal or plant health.
4. Upon request of a Party, consultations regarding animal welfare shall take place as soon as possible and, in any case, within 20 working days from the date of notification. In such situations, each Party shall endeavour to provide all the tequested information.
5. Upon request of a Party, consultations as referred to in paragraphs 3 and 4 of this Article shall be held by video or audio conference. The requesting Party shall ensure the preparation of the minutes of the consultation, which shall be formally approved by the Parties. For the purposes of that approval, the provisions of Article 160(3) of this Agreement shall apply.
6. A mutually applied rapid alert system and early warning mechanism for any veterinary and phytosanitary emergencies will start at a later stage after the Parties have decided on the arrangements for the functioning of such mechanisms.
Article 162. Trade Conditions
General import conditions:
(a) The Parties agree to subject imports of any commodity covered by Annexes I[I]-A and I-C(2) and (3) to this Agreement to general import conditions. Without prejudice to the decisions taken in accordance with Article 158 of this Agreement, the import conditions of the importing Party shall be applicable to the total territory of the exporting Party. Upon entry into force of this Agreement and in accordance with the provisions of Article 160 of this Agreement, the importing Party shall inform the exporting Party ofits sanitary and/or phytosanitary import requirements for commodities referred to in Annexes III-A and III-C to this Agreement. That information shall include, as appropriate, the models for the official certificates or declarations or commercial documents, as prescribed by the importing Party.
(b) (i) Any amendment or proposed amendment of the conditions referred to in paragraph 1(a) of this Article shall comply with the relevant notification procedures of the SPS Agreement whether or not they refer to measures covered by the SPS Agreement;
(ii) Without prejudice to the provisions of Article 166 of this Agreement, the importing Party shall take into account the transport time between the Parties to establish the date of entry into force of the amended conditions referred to in paragraph 1(a) of this Article; and
(iii) If the importing Party fails to comply with those notification requirements, it shall continue to accept the certificate or the attestation guaranteeing the previously applicable conditions until 30 days after the amended import conditions enter into force.
Import conditions after recognition of equivalence:
(a) Within a reasonable period of time following the date of adoption of the decision on recognition of equivalence, the Parties shall take the necessary legislative and administrative measures to implement the recognition of equivalence in order to allow, on that basis, trade between them of the commodities referred to in Annexes III-A and I-C(2) and (3) to this Agreement. For those commodities, the model for the official certificate or official document required by the importing Party may, then, be replaced by a certificate drawn up as provided for in Annex IX Part B to this Agreement.
(b) For commodities in sectors or sub-sectors for which not all measures are recognised as equivalent, trade shall continue on the basis of compliance with the conditions referred to in paragraph 1(a) of this Article. Upon request of the exporting Party, the provisions of paragraph 5 of this Article shall apply.
3. From the date of entry into force of this Agreement, the commodities referred to in Annexes I-A and II-C(2) to this Agreement shall not be subject to a specific import authorisation.
4. For conditions affecting trade of the commodities referred to in paragraph 1(a) of this Article, upon request of the exporting Party, the Parties shall enter into consultations within the SPS Sub-Committee in accordance with the provisions of Article 167 of this Agreement, in order to agree on alternative or additional import conditions of the importing Party. Such alternative or additional import conditions may, when appropriate, be based on measures of the exporting Party recognised as equivalent by the importing Party. If agreed, the importing Party shall within 90 days take the necessary legislative and/or administrative measures to allow import on the basis of the agreed import conditions.
5. List of establishments, conditional approval:
(a) For the import of animal products referred to in Part 2 of Annex III-A to this Agreement, upon request of the exporting Party accompanied by the appropriate guarantees, the importing Party shall, subject to and in accordance with its domestic legislation, provisionally approve the processing establishments referred to in paragraph 2 of Annex VI to this Agreement which are situated in the territory of the exporting Party, without prior inspection of individual establishments. Such approval shall be consistent with the conditions and provisions set out in Annex VI to this Agreement. Except when additional information is requested, the importing Party shall take the necessary legislative and/or administrative measures to allow import on that basis within one month following the date of receipt of the request and the relevant guarantees by the importing Party.
The initial list of establishments shall be approved in accordance with the provisions of Annex VI to this Agreement.
(b) For the import of animal products referred to in paragraph 2(a) of this Article, the exporting Party shall inform the importing Party of its list of establishments meeting the importing Party's requirements. 6. Upon request of a Party, the other Party shall provide the explanation and the supporting data for the determinations and decisions covered by this Article.
Article 163. Certification Procedure
1. For the purposes of certification procedures and issuing of certificates and official documents, the Parties agree on the principles set out in Annex IX to this Agreement.
2. The SPS Sub-Committee referred to in Article 167 of this Agreement may agree on the rules to be followed in the case of electronic certification, withdrawal or replacement of certificates.
3. The Parties shall agree on common models of certificates, where appropriate.
Article 164. Verification
1. In order to maintain confidence in the effective implementation of the provisions of this Chapter each Party has the right:
(a) to carry out verification of all or part of the inspection and certification system of the other Party's authorities, and/or of other measures, where applicable, in accordance with the relevant international standards, guidelines and recommendations of Codex Alimentarius, OTE and IPPC; and
(b) to receive information from the other Party about its control system and be informed of the results of the controls carried out under that system.
2. Either Party may share the results of the verifications referred to in paragraph 1(a) with third parties and make the results publicly available as may be required by provisions applicable to either Party. Confidentiality provisions applicable to either Party shall be respected in such sharing and/or publication of results, where appropriate.
3. If the importing Party decides to carry out a verification visit to the exporting Party, the importing Party shall notify the exporting Party of that verification visit at least three months before the verification visit is to be carried out, except in emergency cases or if the Parties agree otherwise. Any modification to that visit shall be agreed by the Parties.
4. The costs incurred in undertaking a verification of all or part of the other Party's competent authorities' inspection and certification systems, or other measures, where applicable, shall be borne by the Party carrying out the verification or the inspection.
5. The draft written communication of verifications shall be forwarded to the exporting Party within three months after the end of verification. The exporting Party shall have 45 working days to comment on the draft written communication. Comments made by the exporting Party shall be attached to and, where appropriate, included in the final outcome. However, where a significant human, animal or plant health risk has been identified during the verification, the exporting Party shall be informed as quickly as possible and in any case within 10 working days following the end of the verification.
6. For clarity the results of a verification may contribute to the procedures referred to in Articles 159 and 165 of this Agreement conducted by the Parties or one of the Parties.
Article 165. Import Checks and Inspection Fees
1. The Parties agree that import checks by the importing Party of consignments from the exporting Party shall respect the principles set out in Annex VII Part A to this Agreement. The results of those checks may contribute to the verification process referred to in Article 164 of this Agreement.
2. The frequencies of physical import checks applied by each Party are set out in Annex VIII Part B to this Agreement. A Party may amend those frequencies, within its competence and in accordance with its internal legislation, as a result of progress made in accordance with Articles 159 and 162 of this Agreement, or as a result of verifications, consultations or other measures provided for in this Agreement. The SPS Sub-Committee referred to Article 167 of this Agreement shall accordingly modify Annex VIII Part B to this Agreement by decision.
3. Inspection fees may only cover the costs incurred by the competent authority for performing import checks. The fee shall be calculated on the same basis as the fees charged for the inspection of similar domestic products.
4. The importing Party shall upon request of the exporting Party inform the exporting Party of any amendment, including the reasons for such an amendment, concerning the measures affecting import checks and inspection fees, and of any significant changes in the administrative conduct for such checks.
5. The Parties may agree on the conditions to approve, as from a date to be determined by the SPS Sub-Committee referred to in Article 167 of this Agreement, each otherâs controls as referred to in Article 164(1)(b) of this Agreement with a view to adapting and reciprocally reducing, where applicable, the frequency of physical import checks for the commodities referred to in Article 162(2)(a) of this Agreement.
From that date onwards, the Parties may reciprocally approve each otherâs controls for certain commodities and consequently reduce or replace the import checks for those commodities.
Article 166. Safeguard Measures
1. Should the exporting Party take within its territory measures to control any cause likely to constitute a serious hazard or risk to human, animal or plant health, the exporting Party, without prejudice to the provisions of paragraph 2, shall take equivalent measures to prevent the introduction of the hazard or risk into the territory of the importing Party.
2. On grounds of serious human, animal or plant health, the importing Party may take provisional measures necessary for the protection of human, animal or plant health. For consignments en route between the Parties, the importing Party shall consider the most suitable and proportionate solution in order to avoid unnecessary disruptions to trade.
3. The Party adopting measures under paragraph 2 of this Article shall inform the other Party no later than one working day following the date of the adoption of the measures. Upon request of either Party, and in accordance with the provisions of Article 161(3) of this Agreement, the Parties shall hold consultations regarding the situation within 15 working days of the notification. The Parties shall take due account of any information provided through such consultations and shall endeavour to avoid unnecessary disruption to trade, taking into account, where applicable, the outcome of the consultations provided for in Article 161(3) of this Agreement.
Article 167. Sanitary and Phytosanitary Sub-Committee
1. The SPS Sub-Committee is hereby established. It shall meet within three months, after the entry into force of this Agreement, upon request of either Party, or at least once every year. Subject to agreement by the Parties, a meeting of the SPS Sub-Committee may be held by video or audio-conference. The SPS Sub-Committee may also address issues out of session, by correspondence.
2. The SPS Sub-Committee shall have the following functions: (a) to consider any matter relating to this Chapter;
(b) to monitor the implementation of this Chapter and examine all matters which may arise in relation to its implementation;
(c) to review Annexes III to X to this Agreement, notably in the light of progress made under the consultations and procedures provided for under this Chapter;
(d) to modify, by means of a decision, Annexes III to X to this Agreement in the light of the review provided for in point (c) of this paragraph, or as otherwise provided in this Chapter; and
(e) to give opinions and make recommendations to the Political and Strategic Dialogue in trade configuration, in accordance with Article 375 ofthis Agreement in the light of the review provided for in point (c) of this paragraph.
3. The Parties agree to establish technical working groups, when appropriate, consisting of expert-level representatives of the Parties, which shall identify and address technical and scientific issues arising from the application of this Chapter. When additional expertise is required, the Parties may establish ad hoc groups, including scientific and expert groups. Membership of such ad hoc groups need not be restricted to representatives of the Parties.
4. The SPS Sub-Committee shall regularly inform, by means of a report, the Political and Strategic Dialogue in Trade configuration, as set out in Article 375(3) of this Agreement, on its activities and the decisions taken within its competence.
5. The SPS Sub-Committee shall adopt its working procedures at its first meeting. 6. Any decision, recommendation, report or other action by the SPS Sub- Committee or any group established by the SPS Sub-Committee shall be adopted by consensus between the Parties.
Chapter 5. CUSTOMS AND TRADE FACILITATION
Article 168. Objectives
1. The Parties acknowledge the importance of customs and trade facilitation in the evolving bilateral trade environment. The Parties agree to reinforce cooperation in this area with a view to ensuring that the relevant legislation and procedures, as well as the administrative capacity of the relevant administrations, fulfil the objectives of effective control and support facilitation of legitimate trade, as a matter of principle.
2. The Parties recognise that utmost importance shall be given to legitimate public policy objectives, including trade facilitation, security and prevention of fraud, and a balanced approach to them.
Article 169. Legislation and Procedures
1. The Parties agree that their respective trade and customs legislation, as a matter of principle, shall be stable and comprehensive, and that the provisions and the procedures shall be proportionate, transparent, predictable, non-discriminatory, impartial and applied uniformly and effectively and shall inter alia:
(a) protect and facilitate legitimate trade through effective enforcement of, and compliance with, legislative requirements;
(b) avoid unnecessary or discriminatory burdens on economic operators, prevent fraud and provide further facilitation for economic operators having a high level of compliance;
(c) apply a Single Administrative Document (SAD) for the purposes of customs declarations;
(d) take measures which lead to greater efficiency, transparency and simplification of customs procedures and practices at the border;
(e) apply modern customs techniques, including risk assessment, post- clearance controls and company audit methods, in order to simplify and facilitate the entry and the release of goods;
(f) aim at reducing costs and increasing predictability for economic operators, including small and medium-sized enterprises;
(g) without prejudice to the application of objective risk-assessment criteria, ensure the non-discriminatory administration of requirements and procedures applicable to imports, exports and goods in transit;
(h) apply the international instruments applicable in the field of customs and trade, including those developed by the World Customs Organisation (WCO) (the Framework of Standards to Secure and Facilitate Global Trade), the WTO (the Agreement on Customs Valuation), the Istanbul Convention on Temporary Admission of 1990, the International Convention on the Harmonised Commodity Description and Coding System of 1983, the UN TIR Convention of 1975 and the 1982 International Convention on the Harmonisation of Frontier Controls of Goods;
(i) take the necessary measures to reflect and implement the provisions of the Revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures of 1973;
(j) provide for advance binding rulings on tariff classification and rules of origin. The Parties ensure that a ruling may be revoked or annulled only after notification to the affected operator and without retroactive effect, unless the rulings have been made on the basis of incorrect or incomplete information;
(k) introduce and apply simplified procedures for authorised traders according to objective and non-discriminatory criteria;
(l) set rules that ensure that any penalties imposed for the breaches of customs regulations or procedural requirements be proportionate and non- discriminatory and that their application does not result in unwarranted and unjustified delays; and