5. The advance ruling may be modified or revoked by the competent authority in the following cases:
a) Where it is based on an error:
i) In fact;
ii) In the tariff classification of goods or materials;
iii) In the application of a regional value content requirement under rules of origin (chapter 4); or
(iv) In the application of the rules for determining whether a good re-enters that its territory after it has been exported from its territory to the territory of another Party for repair or alteration qualifies for duty-free treatment in accordance with article customs (0307 re-imported goods after having been repaired or altered);
b) If it is not in accordance with an agreed interpretation by the parties regarding chapter 3 (National Treatment and access of goods to market) or the rules of origin (chapter 4);
c) Where a change in the circumstances or facts therefor;
d) In order to comply with a modification to this chapter and chapter 3 (National Treatment and access of goods to the market), chapter 4 (rules of origin), or the uniform regulations; or
e) In order to comply with an administrative or judicial decision or a change in conformity with the legislation of the party that issued the advance ruling.
6. Each Party shall provide that any modification or revocation of an advance ruling takes effect on the date on which it is issued or on a later date that there is established. and shall not be applied to imports of goods made before those dates, unless the person to whom it was issued has not acted in accordance with its terms and conditions.
7. Notwithstanding paragraph 6, the party that issued the advance ruling shall postpone the effective date of such modification or revocation for a period not exceeding ninety (90) days where the person to whom it issued an advance ruling was based on that basis and in good faith to its detriment.
8. Each Party shall provide that when considering the regional value content of a good for which it has issued an advance ruling, its competent authority evaluate whether:
a) The exporter or producer has complied with the terms and conditions of the advance ruling;
b) The exporter or producer operations are consistent with the material facts and circumstances underlying this resolution; and
c) The data supporting computations and used in applying the basis or method for calculating the correct value are substantial in all aspects.
9. Each Party shall provide that where its competent authority determines that has not been complied with any of the requirements established in paragraph 8, the competent authority may revoke or modify the advance ruling as the circumstances warrant.
10. Each Party shall provide that where its competent authority determines that the advance ruling was based on incorrect information shall not penalize the person to whom it issued if it proves that it acted with reasonable care and good faith in stating the facts and circumstances on which the advance ruling.
11. Each Party shall provide that where it issues an advance ruling to a person that has omitted or falsely signified substantial facts or circumstances on which the advance ruling is based or has not acted in accordance with the terms and conditions of the same, the competent authority issuing the advance ruling may apply appropriate measures in accordance with its legislation.
12. The Parties shall provide that the holder of an advance ruling may use it only while maintaining the facts or circumstances that led to its issuance. in this case, the holder of the ruling may submit the information necessary for the appropriate authority that issued it pursuant to paragraph 5.
13. It shall not be the subject of an advance ruling a good that is subject to a procedure to verify the origin or a request of review or appeal in the territory of either party.
Article 5.10. Review and Challenge
1. Each Party shall grant to exporters or producers of the other party the same rights of appeal and review of determinations of origin and advance rulings referred to its importers, provided that:
a) Complete and sign a declaration or certificate of origin that covers a good that has been the subject of a determination of origin in accordance with article 5.08 (12); or
b) Has received an advance ruling pursuant to article 5.09.
2. The rights referred to in paragraph 1 shall include access to at least one level of administrative review of the independent office or official responsible for the determination of origin or an advance ruling subject to review and access to a level of judicial review of the determination or decision taken at the final level of administrative review, in accordance with the legislation of each party.
Article 5.11. Sanctions
Each Party shall establish or maintain criminal, civil or administrative penalties for violations of its laws and regulations relating to the provisions of this chapter.
Nothing in articles 5.03 (1) (d), 5.03 5.04 (2), (2), (4), 5.08 5.08 (7) or 5.08 (9) shall be construed to prevent a party from applying measures that apply under its law.
Article 5.12. Uniform Regulations
The Parties shall establish and implement through their respective laws or regulations by the date of Entry into Force of this Treaty and at any time thereafter, uniform regulations concerning the interpretation, application and administration of this chapter and chapter 3 (National Treatment and access of goods to the market), chapter 4 (rules of origin) and other matters as agreed by the parties.
2. The parties undertake to complete the negotiation of uniform regulations within sixty (60) days after the signature of this Treaty.
3. Once the uniform regulations, each Party shall implement any of modification or addition to no later than one hundred and eighty (180) days after the respective agreement between the parties or within any other period as they may agree.
Article 5.13. Cooperation
1. To the extent possible, a Party shall notify the other party of the following measures, determinations or resolutions, including those which are being applied:
a) A determination of origin issued as a result of the verification conducted pursuant to article 5.08, any high levels of review and appeal referred to in Article 5.10;
b) A determination of origin that the Party considers contrary to a ruling issued by the competent authority of the other Party on the tariff classification or value of a good or of the materials used in the production of a good;
c) A measure significantly establishing or modifying an administrative policy that could affect future resolutions of a determination of origin; and
d) An advance ruling or modification pursuant to article 5.09.
2. The Parties shall cooperate:
a) In the enforcement of their respective customs-related laws or regulations for the implementation of this Treaty, as well as any Customs Mutual Assistance Agreement or other customs agreement to which they are party;
b) For purposes of facilitating trade between their territories in customs matters such as the collection and exchange of statistics regarding the importation and exportation of goods, the harmonization of documentation used in trade, the standardization of data elements, the acceptance of an international data syntax and the exchange of information;
c) In the exchange of customs legislation;
d) In the verification of origin of a good for which the competent authority of the importing Party may request to the competent authority of the other party that the latter practised in its territory specific investigations leading to that end, the report referring to the competent authority of the importing Party;
e) In seeking a mechanism for the purpose of detecting and preventing the illicit transhipment of goods from a Party or of a non- party; and
f) In jointly organizing training programs on Customs matters which include training for officials and the users who participate directly in customs procedures.
Chapter 6. Safeguard Measures
Article 6.01. Definitions
For purposes of this chapter:
Agreement on safeguards means the Agreement on Safeguards, which is part of the WTO agreement;
Threat of serious harm: in accordance with the Agreement on Safeguards;
The investigating authority: investigating authority pursuant to annex 6.01;
Critical circumstances: those circumstances in which a delay in the application of the safeguard measure would cause damage that would be difficult to repair;
Serious injury: in accordance with the Agreement on Safeguards;
Safeguard measure means a measure applied under the provisions of this chapter. does not include any safeguard measure arising from such proceedings brought before the Entry into Force of this Treaty;
Transition period means the period during which a Party may adopt and maintain safeguard measures, and shall include, for each good, the tariff relief that is subject to a further period of two (2) years from the end of the programme;
The domestic industry means producers as a whole of the like or directly competing goods operating within the territory of a party or those whose collective output of the like or directly competing goods constitutes a major proportion of the total domestic production of those goods; and
Link: in accordance with the Agreement on Safeguards.
Article 6.02. Bilateral Safeguard Measures
1. For the application of the Bilateral safeguard measures, the investigating authority shall be referred to in this chapter and, subsidiarily, in accordance with Article XIX of GATT 1994 and the Agreement on Safeguards and their respective legislation.
2. Subject to paragraphs 2 through 5 and during the transition period, may apply a safeguard measure if as a result of the reduction or elimination of a customs duty pursuant to this Treaty, goods originating from the territory of a Party is being imported into the territory of another party in such increased quantities in quantity in relation to domestic production and under such conditions that the imports of the good from that party alone constitute a substantial cause of serious injury or threat of serious injury to a domestic industry producing a like or directly competing goods. the party into whose territory the good is being imported may, to the minimum extent necessary to remedy or prevent the serious injury or threat of serious harm:
a) The suspend any further reduction of tariff rate under this Treaty for the goods; or
b) Increasing the tariff rate for the good to a level not to exceed the lesser of:
i) The Customs most-favoured-nation tariff applied at the time the measure is taken; and
ii) The Customs most-favoured-nation tariff applied on the day preceding the date of entry into force of this Treaty.
3. The following conditions and limitations shall apply to a proceeding that may result in the application of a safeguard measure pursuant to paragraph 2:
a) A Party shall notify the other party without delay and in writing, the initiation of a proceeding that could result in the application of a measure to safeguard an goods originating from the territory of another party;
b) Any safeguard measure shall take effect within one (1) year from the date of initiation of the proceeding;
c) No safeguard measure may be maintained:
i) For more than three (3) years which may be extended for a period of one additional year (1), in accordance with the procedure laid down in article 6.04 (21); or
ii) After the expiration of the transition period, except with the consent of the Party whose good against the measure is applied;
d) During the transition period, the Parties may implement and extend the application of safeguard measures of the same goods only twice;
e) A safeguard measure may be applied in a second time has elapsed, provided that at least a period equivalent to half of the safeguard that during which the measure was applied for the first time;
f) The period during which has been applied a provisional safeguard measure shall be counted for purposes of determining the duration of the definitive Safeguard Measure set out in subparagraph (c);
g) Provisional measures that do not become final shall be excluded from the limitation provided for in subparagraph (d);
h) During the period of extension of a safeguard measure, the tariff rate shall be progressively reduced to be surrendered appropriate tariff relief under the current programme; and
i) Upon the termination of the safeguard measure, the tariff rate shall be the party concerned, in accordance with the schedule of tariff relief in force.
4. Only with the consent of the party, the other party may apply a safeguard measure beyond the expiration of the transition period to deal with cases of serious injury or threat of serious injury to the domestic industry arising from the implementation of this Treaty.
5. The party applying a safeguard measure under this article shall provide to the other party mutually agreed compensation liberalizing trade in the form of trade concessions having substantially equivalent effects or equivalent to the value of the additional customs duties expected of the safeguard measure. if the parties are unable to agree on compensation against the party whose product the safeguard measure is applied may impose tariff trade substantially action having effects equivalent to the safeguard measure taken pursuant to this article. the Party taking the action shall only tariff for the minimum period necessary to achieve the substantially equivalent effects.
Article 6.03. Global Safeguard Measures
1. Each Party retains its rights and obligations under article XIX of GATT 1994 and the Agreement on Safeguards, except those regarding compensation or retaliation and exclusion of a safeguard measure as incompatible with the provisions of this article.
2. A Party applying a safeguard measure in accordance with paragraph 1 of this measure, shall exclude imports of goods from another Party, unless:
a) Imports from the other party account for a substantial share of total imports; and
b) Imports from the other party contribute importantly to the serious injury or threat of serious injury caused by imports.
3. In determining whether:
a) Imports from the other party account for a substantial share of total imports, those normally shall not be considered to be substantial if that Party is not among the top five (5) major suppliers of goods
Subject to the procedure based its import share during the three (3) years immediately preceding; and
b) Imports from the other party contribute importantly to the serious injury or threat of serious harm, the competent investigating authority shall consider such factors as the change in the participation of that other Party on the total imports, as well as the volume of imports of that other Party that has suffered and volume changes. normally shall not be considered as imports from a Party contribute importantly to the serious injury or threat of serious harm if its growth rate during the period in which the sudden increase harmful to the same is appreciably lower than the growth rate of total imports from all sources over the same period.
4. A Party shall without delay and in writing to the other party of the initiation of a proceeding that could result in the application of a safeguard measure in accordance with paragraph 1.
5. No party may apply a measure referred to in paragraph 1 to impose restrictions on a good without prior written notification to the Commission and provide adequate opportunity for prior consultations with the other party as early as practicable before application.
6. Where a Party determines, pursuant to this article, apply to goods originating a safeguard measure of the other party, the arrangements applied to those goods consist solely and exclusively in tariff measures.
7. The party applying a safeguard measure under this article shall provide to the other party mutually agreed compensation liberalizing trade in the form of trade concessions having substantially equivalent effects or equivalent to the value of the additional customs duties expected of the safeguard measure.
8. If the parties are unable to agree on compensation against the party whose product the safeguard measure is applied may impose trade measures substantially having effects equivalent to the safeguard measure adopted in accordance with paragraph 1.
Article 6.04. Proceedings Relating to Safeguard Measures
1. Each Party shall provide consistent and impartial application of its laws, regulations, decisions and rulings governing all procedures for the application of safeguard measures.
2. Procedures for the adoption of safeguard measures, the determination of the existence of serious injury or threat of serious harm, the investigating authority of each party. these decisions shall be subject to judicial review or by tribunals
Administrative to the extent provided for domestic legislation. negative resolutions on the existence of serious injury or threat of serious harm may not be modified by the investigating authority. the investigating authority empowered under domestic law to conduct such proceedings, it shall provide all the necessary facilities for the performance of its duties.
3. Each Party shall establish or maintain procedures equitable, timely, transparent and effective for the application of safeguard measures in accordance with the requirements set out in this article.
Initiation of proceedings
4. The investigating authority may initiate on its own initiative or on application by entities empowered under its laws, procedures for the adoption of safeguard measures. the Entity shall submit the request that it is representative of the domestic industry producing a like or directly competing goods imported goods. to this effect means that the major proportion may not be less than 25 percent (25 per cent).
5. Except as provided in this article shall govern deadlines that these procedures shall be established in the domestic legislation of each party.
Content of the application
6. The representative of the domestic industry to submit an application for an investigation, provide information in its request, to the extent that it is publicly available from governmental or other sources, or if that is not available, their best estimates and the basis for them to consist in:
a) Description of goods: the name and description of the imported goods in question, the tariff subheading which is classified and the current tariff treatment and the name and description of the like or directly competing national goods;
b) Representativeness:
i) The names and addresses the request of the submitting entities, as well as the locations of the establishments in which they produce the domestic goods in question;
ii) The percentage of domestic production of the like or directly competing goods that such entities account for and the basis for claiming that they are representative of the domestic industry; and
ii) The names and locations of all other establishments in which the domestic like or directly competing goods;
c) Figures on Importation: import data for each of the 3 full years immediately prior to the initiation of the proceedings relative to the application of a safeguard measure, which constitute the
Basis of the claim that the good concerned is being imported in such increased quantities, either in absolute terms or relative to domestic production as appropriate;
d) Figures on domestic production: data on total domestic production of the like or directly competing goods, for each of the past three (3) years immediately prior to the initiation of the proceedings relative to the application of a safeguard measure;
e) Data showing injury or threat thereof: quantitative indicators and targets to reflect the nature and extent of injury or threat of injury to the domestic industry at issue, such as the showing changes in the level of sales, productivity, prices, production capacity utilisation, market share, profits or losses, and employment;
f) A cause of injury - an enumeration and description of the alleged causes of injury or threat of serious harm, and a summary of the basis for the claim that the increased imports of such goods, with respect to the domestic industry, is the cause of serious injury or threat of serious harm, supported by relevant information; and
g) Criteria for inclusion - quantitative and objective data indicating the share of imports from the territory of the other contracting party, as well as the considerations of the applicant on the extent to which such imports are contributing importantly to the serious injury or threat of serious harm.
7. Once the application is admitted, it shall without delay inform the public inspection, except information confidential.
Consultations
8. As soon as possible, once admitted an application pursuant to paragraph 6 and in any case before the initiation of an investigation, the Party that seeks to begin it shall notify the other party and invited to hold consultations with a view to clarifying the situation.
9. During the period of the investigation shall be given to the Party whose goods are the subject of an adequate opportunity to continue consultations.
10. During the consultations the parties may seek, among other matters on the investigation procedure, the elimination of the measure, the matters referred to in article 6.02 (5) and, in general, exchanging views on the measure.
11. Without prejudice to the obligation to provide adequate opportunity for consultations, the provisions of paragraphs 8, 9 and 10 are not intended to prevent any party to the proceeding promptly to the initiation of an investigation or to the formulation of preliminary and final determinations, affirmative or negative, or from applying measures in accordance with the provisions of this Treaty.
12. The Party conducting an investigation shall, if so requested, access to the Party whose goods are subject to the public record, including the confidential summary of non-confidential information used for the initiation or during the investigation.
Notification requirements
13. To initiate a procedure for the adoption of safeguard measures, the investigating authority shall publish the resolution in the Official Journal of initiation or other of national circulation within a period of thirty (30) days of the submission of the request. such publication shall notify the other party without delay and in writing. the notification shall contain the following information: the name of the applicant; the indication of the imported goods subject to the proceeding and its tariff fraction; the nature and timing of delivery; the resolution Date and place of the public hearing; the time limits for the submission of reports, statements and other documents; where the application and other documents submitted during the proceeding may be inspected; and the name, address and telephone number of the office where additional information is available.
14. With respect to a procedure for the adoption of safeguard measures, initiated on the basis of a petition filed by an entity claiming to be representative of the domestic industry, the investigating authority shall not publish the notice required in paragraph 13 without carefully evaluating the application if complies with the requirements established in paragraph 6.
Public hearing
15. Over the course of each procedure, the investigating authority:
a) Without prejudice to the legislation of the Party after providing reasonable notice, shall hold a public hearing to appear in person or through representatives, importers, exporters, consumer associations and other interested parties to submit
Evidence and to be heard on the serious injury or threat of serious harm and the appropriate remedy; and
b) Provide an opportunity to all interested parties, for appearing at the hearing and question interested parties to submit arguments in the same.
Confidential information
16. For the purposes of article 6.02, the investigating authority shall adopt or maintain procedures for the treatment of confidential information protected by domestic legislation that is provided in the course of the proceedings and shall require the interested parties to provide such information, the delivery of written non-confidential summaries thereof. if the parties concerned are unable to summarize this information, explain the reasons
Prevent. the authorities may disregard such information, unless it can be satisfactorily demonstrated from appropriate sources that the information is correct.
17. The investigating authority shall not disclose any confidential information provided pursuant to any undertaking concerning confidential information that has been made in the course of the proceedings.
Evidence of injury or threat of injury
18. For conducting the procedure, the investigating authority shall as far as possible any relevant information for the relevant resolution. shall evaluate all relevant factors of an objective and quantifiable nature that affect the situation of domestic industry, including that the rate and the amount of increase in imports of the goods in question under the domestic industry; the share of the domestic market covered by increased imports; and changes in the level of production, sales, productivity, utilisation of capacity, profits or losses, and employment. for the resolution, the investigating authority may also consider other economic factors such as changes in prices and inventories and the ability of firms in the industry to generate capital.
Deliberation and resolution
19. Except in critical circumstances and in global agricultural safeguard measures concerning perishable goods, the investigating authority, before issuing an affirmative resolution in a procedure for the adoption of safeguard measures, allow sufficient time to gather and consider the relevant information, shall hold a public hearing and provide an opportunity to all interested parties to prepare and submit their views.
20. The final determination is issued without delay in the Official Journal or other of national circulation and shall indicate the findings and reasoned conclusions on all pertinent issues of law and fact. the resolution shall describe the imported goods, fractions tariff, the applicable evidentiary standard applied and the finding made in the proceedings. recitals shall state the grounds for resolution, including a description of:
a) The domestic industry which has been or is threatened with serious injury;
b) The information supporting a finding that imports are increasing; that the domestic industry is or is threatened with serious injury; that increased imports are causing or threatening to cause serious injury; and
c) If provided for by domestic legislation, any recommendation or finding regarding the appropriate remedy and the basis.
Extension
21. If the importing Party determines that the reasons that led to the application of the Bilateral safeguard measure shall be notified to the competent authority of the other party of its intention to renew at least ninety (90) days before the expiry of its duration and shall provide evidence that the reasons that led to their adoption, to initiate consultations, which shall be made in accordance with this article. notifications of the extension and compensation shall be implemented as provided for in this article before the expiry of the measures taken.
Article 6.05. Settlement of Disputes Regarding Safeguard Measures
No party may request the establishment of an arbitral panel in accordance with article 19.08 integration (Request for an arbitral panel), when that safeguard measures have been merely proposals.
Chapter 7. Unfair Trading Practices
Article 7.01. Scope of Application
1. The Parties confirm their rights and obligations under the Agreement on Subsidies and Countervailing Measures and the Agreement on Implementation of article VI of the General Agreement on Tariffs and Trade 1994, that form part of the WTO Agreement.
2. Each Party may initiate an investigation procedure and apply anti-dumping or countervailing duties in accordance with the agreements referred to in paragraph 1, as well as with its legislation.