b) Equipment for the press or for transmission to air of radio or television broadcasting and cinematographic equipment;
c) Admitted for sports purposes and goods intended for display or demonstration; and
d) Commercial Samples and Advertising films;
Admitted into the territory of another party, regardless of whether they are goods originating in the territory of the other party are available directly or similar goods competing substitutable.
2. Except as otherwise provided in this Treaty, any party subject the temporary admission free of customs tariff of a good of the type indicated in paragraph 1 (a), (b) or (c), other than the following conditions:
a) Where the goods are accepted by a national or resident of the other party who seeks temporary entry;
b) Where the goods are used exclusively by the visitor or person under the personal supervision in the performance of its activity, trade or profession;
c) That the goods not be sold or leased while in its territory;
d) If the goods to be accompanied by a bond not exceeding one hundred ten percent (110 percent of the charges that would otherwise due to his case by the final importation, or by another form of guarantee reimbursable at the time of the exportation of goods is not required, except that a bond for customs duties on goods originating whichever is;
e) Where the good be capable of identification when outside its territory;
f) Where the goods leave together with that person or within a reasonably time period corresponding to the purpose of the temporary admission; and
g) If the goods to be admitted in quantity no greater than is reasonable for its intended use.
3. Except as otherwise provided in this Treaty, any party subject the temporary admission free of customs tariff of a good of the type indicated in paragraph 1 (d), other than the following conditions:
a) Where the goods are allowed only for purposes of live orders for goods of another party, regardless of whether they are provided services or goods originating from the territory of another party;
b) Where the goods are not intended for sale or lease, and is used only for demonstration or exhibition while in its territory;
c) Where the good be capable of identification when outside its territory;
d) Where the goods leave within a period reasonably corresponding to the purpose of the temporary admission; and
e) If the goods to be admitted to no greater quantity in reasonable according to the intended use.
4. Where a good is temporarily admitted free of customs tariff in accordance with paragraph 1 fails to comply with any of the conditions that imposes a Party under paragraphs 2 and 3, that party may apply:
a) The customs duty and any other charge that would be due to the final importation of the same; and
b) Any criminal, civil or administrative penalties that the circumstances warrant.
5. Subject to the provisions of Chapters 10 (investment) and eleven (cross-border trade in services):
a) Each Party shall permit containers and vehicles used in international transport which have entered into its territory from the other party to its territory on any exit route that is reasonably related to the economic and prompt departure of such vehicle or container;
b) A Party may require any bond or impose any penalty or charge solely by reason of the entry of a vehicle or container is different from that of departure;
c) No party will condition the release of any obligation, including a bond that has applied for the entry of a vehicle or container into its territory on its exit is made by a port in particular; and
d) No party may require that the carrier bringing a container or vehicle from the territory of another party, is the same as that in the territory of the other party.
6. For purposes of paragraph 5: means a vehicle, trailer truck, tractocamión 1.tractor, trailer or unit or locomotive freight railroad or other equipment.
Article 3.06. Duty-free Imports for Commercial Samples of Negligible or No Commercial Value and Printed Advertising Materials
Each Party shall authorize the free customs tariff for Importation of Commercial Samples of negligible value or no commercial value and printed materials advertising, regardless of their origin, if imported from the territory of the other party, but may require that:
a) Such commercial samples be imported solely for purposes of live orders for goods or services of another party, regardless of whether they are originating goods or services are supplied from the territory of the other party or of a non- Party; or
b) Such advertising materials be imported in printed packets containing no more than one copy of each form, and that neither the materials nor packets form part of a larger consignment.
Article 3.07. Goods Reimported after Having Been Repaired or Altered Altered
1. No party may apply a customs duty to a good regardless of their origin, which is being re-imported into its territory after being or having left temporarily exported to the territory of another party to be repaired or altered, regardless of whether such repair or alteration could be performed in its territory.
2. No party may apply the customs duties on goods, regardless of their origin, are temporarily admitted to the territory of another party to be repaired or altered.
3. Both the reimportation temporary admission as paragraph 1 of paragraph 2 shall be made within the time period established in the respective laws of the Parties.
Article 3.08. Customs Valuation
The Customs Valuation Agreement shall govern the customs valuation rules applied by the parties in their reciprocal trade in the form in which the parties have taken. without prejudice to the foregoing, the parties undertake not to determine the value of the goods on the basis of minimum values, except as provided in annex 3.08.
Article 3.09. Restrictions on Exports to Support Programmes
The Parties shall establish the treatment to domestic support for agricultural goods and to support programmes for exports in annex 3.09.
Section D. Non-tariff Measures
Article 3.10. Import and Export Restrictions
1. The parties undertake to complete immediately and eliminate non-tariff barriers, with the exception of the Rights of the Parties in accordance with Articles XX and XXI of the GATT 1994 and those covered in chapter 8 (sanitary and phytosanitary measures) and chapter 9 (measures of standardization, metrology and authorization procedures).
2. Except as otherwise provided in this Treaty, no Party may adopt or maintain a prohibition or restriction on the importation of any goods of the other party or on the exportation for sale or export of any good destined for the territory of another party, except as provided in article XI of the GATT 1994, including its interpretative notes. to this end article XI of GATT 1994 and its interpretative notes are incorporated into this Agreement and form an integral part thereof.
3. The parties understand that the rights and obligations of GATT 1994 as incorporated in paragraph 2, prohibit in any circumstances in which any other form of restriction is, the requirements of export prices and except as permitted for the Implementation of Resolutions and Commitments anti-dumping and countervailing measures, the requirements of import prices.
4. In cases where a party adopts or maintains a prohibition or restriction on the importation or exportation of goods to non- or a party, nothing in this Treaty shall be construed as to prevent:
a) Limiting or prohibiting the importation of the goods in the country no party from the territory of the other party; or
b) Requiring as a condition of the export of goods to the territory of another party, which shall not be re-exported non-party to the country, directly or indirectly, without being consumed in the territory of that other party.
5. In the event that a party adopts or maintains a prohibition or restriction on the importation of goods of a non- Party, at the request of another party, the Parties shall consult with a view to avoiding undue interference with or distortion pricing mechanisms, marketing and distribution in that other party.
6. Paragraphs 1 through 4 shall not apply to the measures set out in annex 3.10 (6).
Article 3.11. Customs Processing Fees and Consular Fees
1. Subject to the provisions of annex 3.11 (1), from the entry into force of this Treaty, the Parties shall not apply any right of existing customs formalities, including those set out in annex 3.11 (1), or adopt any new customs formalities, originating on goods.
2. Subject to the provisions of annex 3.11 (2), no party shall be charged consular fees or charges or require consular formalities on goods originating from the entry into force of this Treaty.
Article 3.12. Geographical Indications
1. Each Party shall recognize and protect the geographical indications and designations of origin of the other Party in accordance with this article.
2. Each Party shall permit the import, manufacture or sale of goods using a geographical indication or designation of origin in another Party, unless it has been drawn up and certified in accordance with its applicable legislation to that good.
3. The provisions of paragraphs 1 and 2 shall only those effects in respect of geographical indications and designations of origin and protected by the legislation of the party claiming the protection and whose definition consistent with paragraph 1 of article 22 of the Agreement on Trade-Related Aspects of Intellectual Property Rights related to trade, which is part of the WTO Agreement. furthermore, for access to the protection, each Party shall notify
The other party or geographical indications designations of origin that complying with the requirements set forth above, should be considered within the scope of protection.
4. The foregoing is without prejudice to the recognition that the parties may accord to geographical indications and designations of origin may lawfully homonymous non- belong to a party.
Article 3.13. A Country of Origin Marking
1. Each Party shall apply to the goods of another party, where appropriate, legislation relating to their country of origin marking, pursuant to Article IX of GATT 1994. to this end article XI of GATT 1994 and is incorporated into this treaty is an integral part thereof.
2. Each Party shall accord to the goods of the other party treatment no less favourable than that accorded to goods of a non- party with regard to the implementation of the rules relating to country of origin marking, pursuant to Article IX of GATT 1994.
3. Each Party shall ensure that the establishment and implementation of their respective laws on country of origin marking does not have the purpose or effect of creating unnecessary obstacles to trade between the parties.
Article 3.14. Export Taxes
Without prejudice to annex 3.14, no party shall adopt or maintain taxes, levies or charge on the export of the goods to the territory of another party, unless it is adopted or maintained on such goods, when it is intended for domestic consumption.
Article 3.15. International Obligations
A party, before taking a measure pursuant to an intergovernmental agreement on goods under subparagraph (h) of the article XX of GATT 1994, that may affect trade between the parties shall consult with the other party for avoiding nullification or impairment of a concession granted by that Party in accordance with article 3.04.
Article 3.16. Committee on Trade In Goods
1. The parties establish a committee on trade in goods as set out in annex 3.16.
2. The Committee shall hear matters relating to this chapter and chapter 4 (rules of origin), chapter 5 (procedures) and the uniform customs regulations.
3. Without prejudice to the provisions of article 18.05 (2) (Committees), the Committee shall have the following functions:
a) The Committee refer to matters that impede access of goods to the territory of the Parties, in particular those related to the application of non-tariff measures; and
b) Promoting trade in goods between the parties through consultations and studies to modify the time-limits set out in Annex 3.04 (2) (tariff relief programme), to accelerate tariff relief.
Chapter 4. Rules of Origin
Article 4.01. Definitions
For purposes of this chapter:
CIF means the value of the good imported and includes the cost of insurance and freight up to the port or place of entry into the country of importation;
FOB means the value of the good free on board regardless of the means of transport to final site or the port of shipment abroad;
A good means material that is used in the transformation of production or another includes goods and components, inputs, raw materials, parts and components;
Indirect means a good material used in production, testing or inspection of another good but not physically incorporated into the Party; or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good including:
a) Fuel and energy; catalysts and solvents;
b) Aircraft, equipment and devices used for testing or inspecting the goods;
c) Gloves, spectacles, footwear, clothing, equipment and devices;
d) Tools and moulds, dies;
e) Spare parts and materials used in the maintenance of equipment and buildings;
f) Lubricants, fats, composite products and other products used in production, operation or maintenance of equipment and buildings;
g) Any other matters or product that is not incorporated into the good but properly documented a part of that production;
Fungible goods means interchangeable goods for commercial purposes and whose properties are essentially identical and which cannot be distinguished from one another for mere visual examination;
Goods wholly obtained or produced entirely in the territory of one or more Parties:
a) Minerals extracted in the territory of one or more of the Parties;
b) Vegetable products harvested in the territory of one or more of the Parties;
c) Live animals born and raised in the territory of one or more of the Parties;
d) Goods obtained from hunting or fishing in the territory of one or more of the Parties;
e) Fish, crustaceans and other marine species obtained from the sea outside the territorial waters and the maritime areas where the parties exercise jurisdiction, either by vessels registered or recorded with a party and carry the flag of the party or rented vessels by firms established in the territory of a party;
f) Goods produced on board ships from the factory goods identified in subparagraph (e) provided such factory ships are registered or recorded in a party and carry the flag of that Party factory ships or leased by a company established in the territory of a party;
g) Goods extracted from the seabed beneath the seabed or outside the territorial waters, by a party or a person of a Party provided that the Party has rights to exploit such seabed subsoil; or
h) Waste and scrap derived from:
i) The production in the territory of one or more Parties; or
ii) Used goods collected in the territory of one or more parties, provided that such goods are only for the recovery of raw materials; or
iii) Goods produced in the territory of one or more of the Parties exclusively from goods referred to in subparagraphs (a) to (h) or from their derivatives, at any stage of production;
Generally accepted accounting principles means the principles used in the territory of each Party which confer substantial authoritative support with respect to the recording of income, expenditure, assets and liabilities involved in information and the preparation of financial statements. these indicators may be broad guidelines of general application as well as those standards and practices usually employed in the accounting procedures;
Production: the cultivation, production, harvesting, the birth and upbringing, fishing, hunting, processing, manufacture or assembly of goods;
Producer means a person who cultivate, extract, harvest, farming, fishing, hunting, manufacture, processing or assembles a good;
Value shall be: the value of a good or a material, under the Rules of the Customs Valuation Agreement.
The transaction value of a good means the price actually paid or payable for a good with respect to a transaction of the producer of the good in accordance with the principles of article 1 of the Customs Valuation Agreement, adjusted in accordance with the principles of paragraphs 1, 3 and 4 of Article 8 of the same without considering that the good is sold for export. for the purposes of this definition, the seller referred to in the agreement on customs valuation shall be the producer of the goods; and
The transaction value of a material means the price actually paid or payable for a material with respect to a transaction of the producer of the good in accordance with the principles of article 1 of the Customs Valuation Agreement, adjusted in accordance with the principles of paragraphs 1, 3 and 4 of Article 8 of the same without considering that the material is sold for export. for the purposes of this definition, the seller referred to in the agreement on customs valuation shall be the supplier of the material and the buyer referred to in the agreement on customs valuation shall be the producer of the goods.
Article 4.02. Instruments of Application and Interpretation
1. For purposes of this chapter:
a) The Harmonized System shall be the basis for the tariff classification of goods; and
b) The principles of the Customs Valuation Agreement shall be used for the determination of value of a good or a material.
2. For purposes of this chapter, in applying the Agreement on customs valuation to determine the origin of a good:
a) The principles of the Customs Valuation Agreement shall apply to transactions
Internal, with such modifications as circumstances require, as would apply to international standards; and
b) The provisions of this chapter shall prevail over the valuation of the Agreement
Customs to the extent of the inconsistency.
3. A Party may only accumulate origin of goods originating in countries in respect of which is in force of this Treaty.
4. In cases where a good subject to a specific rule of origin common to all parties, the rules of origin this chapter shall apply only between the exporting party and the importing Party, considering the other parties that are not such a specific rule of origin, as non- party.
5. Two (2) years after the Entry into Force of this treaty for all parties, they shall establish a work program to examine the possibility of materials originating in Chile may be acquired for the purpose of the fulfilment of the rule of origin intracentroamericana. the foregoing, provided that the goods to which incorporates such materials enjoys free trade between Chile and each Central American country as well as between them.
6. Notwithstanding the provisions of paragraph 5, if the countries of Central America accord the treatment referred to in article 5 (a) To 4.02 non- party prior to Chile, they shall accord no less favourable treatment to materials originating in Chile.
Article 4.03. Originating Goods
1. Except as otherwise provided in this chapter shall be regarded as originating goods when:
a) Is wholly obtained or produced entirely in the territory of one or more of the Parties;
b) Is produced in the territory of one or more of the Parties exclusively from materials that qualify as originating under this chapter;
c) Is produced in the territory of one or more of the Parties from non-originating materials that conform to a change in tariff classification, a regional value content or other requirements as specified in annex 4.03 and the good complies with the other applicable provisions of this chapter; or
d) Is produced in the territory of one or more of the Parties but one or more of the non-originating materials used in the production of the good does not satisfy a change in tariff classification because:
i) The goods are imported into the territory of a party without assembling or desensamblada and has been classified as an assembled good pursuant to rule 2 (a) of the general rules for the interpretation of the Harmonized System;
ii) The goods and their parts are classified under the same heading and describes specifically provided that it is not divided into subheadings; or
iii) The goods and their parts are classified in the same subheading and describes it specifically;
Provided that the regional value content of the good determined in accordance with article 4.07, not less than 30 per cent (30%), and the good complies with the other applicable provisions of this chapter, unless the applicable rule of annex 4.03 under which the good is classified specifies a requirement of different regional value content, in which case it shall be applied. nothing in this subparagraph shall not
Apply to goods covered in Chapters 61 to 63 of the Harmonized System.
2. If a party complies with the specific rule of origin established in annex 4.03, is not required in compliance with the requirement of regional value content established in paragraph 1 (d).
3. For purposes of this chapter, the production of a good from non-originating materials that conform to a change in tariff classification and other requirements as specified in annex 4.03, shall be done entirely in the territory of one or more parties, and all the regional value content of a good shall be met entirely in the territory of one or more parties.
4. Notwithstanding the provisions of this article shall not be regarded as originating goods that despite the requirement of a change in tariff classification under the materials are solely the result of operations provided for in article 4.04 performed in the territory of the Parties by the acquiring the final form in which they are marketed, where such operations using non-originating materials, unless the specific rule of origin of annex 4.03 otherwise.
Article 4.04. Minimal Operations or Processes
Minimal operations or processes which alone or in combination thereof, do not confer origin goods are the following:
a) Aeration, ventilation, drying, chilling, freezing;
b) Washing, cleaning, sifting screening, sorting, classifying, or zarandeo entresaque or rank;
c) Peeling husking or desconchado, desgranado boning estrujado, or who, macerado;
d) Removal of dust or damaged parts or damaged, implementation of oil or protective coatings, paint oxide;
e) Testing or division; calibration of bulk shipments, grouping in packs, accession of marks or labels, products or distinguishing signs on their packaging;
f) Packaging, repackaging or unpacking;
g) Dilution in water or in any other aqueous solution, ionization and salting;
h) Armed or simple assembly of parts of products to constitute a complete sets of goods, formation or sets of goods; and
i) The slaughter of animals.
Article 4.05. Indirect Materials
Indirect materials shall be treated as originating regardless of their development or production and the value of such materials shall be the same as in the accounting records of the producer of the goods.
Article 4.06. Cumulation
1. Originating materials or goods originating in the territory of a Party incorporated into a good in the territory of another party, shall be considered as originating in the territory of the latter.
2. For purposes of establishing whether a product originating, is the producer of a good may accumulate its production with that of one or more producers in the territory of one or more Parties, of materials that are incorporated into the good so that the production of the materials is considered as that done by producer, provided that the good satisfies the requirements in article 4.03.
Article 4.07. Regional Content Value
1. The regional value content of the goods shall be calculated according to the following formula: