Central America - Chile FTA (1999)
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3. Except as provided in annexes and 16.01 16.02, this chapter applies to procurements covered by the respective laws of the Parties and make its Entities, relating to:

a) Goods; and

b) Services, subject to the provisions in annexes I and II of chapter 11 (cross-border trade in services).

4. Notwithstanding paragraph 3 (b), this chapter shall not apply to:

b) Subsidies or grants provided by a party or a state enterprise, including loans, guarantees and insurance supported by a party;

b) Government services or functions such as law enforcement services, social rehabilitation, pension or unemployment insurance or social security services, social welfare, education, training and public health care or protection of children; and

c) Cross-border financial services.

Article 16.03. General Rights and Obligations

1. The parties agree to the following rights and obligations pursuant to this chapter:

a) Implementation of the measures regarding government procurement, so as to enable maximum possible competition and respecting the principles of transparency and non-discrimination, as well as the other provisions in this chapter;

b) Promoting business opportunities for suppliers compete in the public procurement preferably based on the principle of value for money, insofar as the application of this principle is compatible with the nature of the procurement. the application of this principle is designed to achieve the most efficient with the financial resources allocated to public entities, considering conducting procurement needs;

c) To ensure maximum simplicity and publicity of government procurement measures;

d) Maintenance and promotion of business opportunities in public procurement for the suppliers of another Party, during implementation processes required to fulfil the commitments made under international agreements relating to the matter to which they are party;

e) Accorded equitable opportunities to suppliers of another party in the procurement procedures; and

f) Does not apply to a measure that:

i) Is discriminatory;

ii) Arbitrary; or

iii) Has the effect of denying equal access or opportunity to a supplier of another party.

2. Nothing in this chapter shall prevent a party to develop a new recruitment policy, provided that this does not contravene the provisions of this chapter.

Article 16.04. National Treatment and Non-discrimination

1. With respect to procurement by entities through competitive procedures, each Party shall accord to the goods and services suppliers of another party treatment no less favourable than that accorded to its own like similar goods and services suppliers of goods and similar services.

2. Without prejudice to the foregoing, in public procurement procedures that use other than those set out in paragraph 1, the Parties shall take the necessary measures that are reasonably available to it to ensure compliance with the obligations under article 16.03 (1) (f).

3. Each Party shall ensure that its entities do not require special conditions to countervailing suppliers of the other Party to participate in the procurement.

4. This article shall not apply to measures concerning customs duties or on other charges of any kind or in connection with the method of importation; levying charges or such other duties and import regulations, including restrictions and formalities.

Article 16.05. Provision of Information and Transparency

1. In addition to the provisions of article 17.04 (disclosure of information), each Party shall ensure that its entities provide for effective dissemination and understanding of:

a) Their respective government procurement systems;

b) Business opportunities generated by the relevant government procurement processes, to provide suppliers of the other Party with all the information required to take part in such procurement; and

c) The results of government procurement processes.

2. Each Party shall ensure that the award criteria are duly substantiated in the manner prescribed by its entities.

3. Each Party undertakes to notify the other party (1) Within one year from the Entry into Force of this Treaty, the legislation governing public procurement in their respective countries and entities covered by this chapter. this obligation extends to any modification of the said information.

Article 16.06. Technical Specifications

Each Party shall ensure that its entities do not develop, adopt or apply technical specifications which have the purpose or effect of creating unnecessary obstacles to trade.

Article 16.07. Denial of Benefits

Subject to prior notification and consultation in accordance with articles 17.04 (provision of information) and article 19.06 (consultations), a Party may deny the benefits of this chapter to a service supplier of another party where it determines that the service is being provided by an enterprise that has no substantial business activities in the territory of the other party and that, in accordance with the other party of legislation that is owned or controlled by persons of a non- party.

Article 16.08. Avoidance Proceedings

Each Party shall maintain or establish administrative or judicial procedures which allow, at the request of an affected supplier of another party, the prompt review of administrative decisions affecting procurements covered by this chapter. each Party shall ensure that such avoidance proceedings are timely, effective, transparent and conform to the principle of non-discrimination and due process.

Article 16.09. Modifications to Coverage

1. The Parties shall conduct consultations at the request of any of them to examine the possibility of incorporating the scope of application of this chapter the entities listed in annex 16.01.

2. The Parties shall adopt these agreements subject to article 18.01 (3) (b) (Free Trade Commission).

Article 16.10. Privatization

1. Nothing in this chapter shall be construed as preventing a party to privatise an entity covered in this chapter. in such cases, the other party may not require compensation.

2. Privatized entities shall not be subject to the implementation of this chapter.

Article 16.11. Information Technology

1. The Parties shall, as far as possible, use electronic means of communication to permit efficient dissemination of information on Government Procurement, in particular those relating to business opportunities offered by entities.

2. With the aim of reaching an enlarged market of public procurement, the Parties shall endeavour to implement an electronic information system and brokerage binding for their respective entities. the main objective of the system shall consist in the dissemination of business opportunities offered by entities.

Article 16.12. Committee on Government Procurement

1. The parties establish a committee on Government Procurement comprising representatives of each, which shall be appointed within three (3) months from the date of Entry into Force of this Treaty.

2. The Committee shall hear matters relating to this chapter and without prejudice to the provisions of article 18.05 (2) (Committees), shall have the following functions:

a) Unless the parties otherwise agree, reviewed every two (2) years of the results of the implementation of this chapter;

b) Consultations and studies to incorporate the scope of application of this chapter the entities listed in annex 16.01;

c) To promote the development and implementation of electronic information system and brokerage mentioned in article 16.11 (2);

d) Coordinate the exchange of statistical information of its public procurement; and

e) Coordinate and promote the development of training programmes for the competent authorities of the Parties.

Article 16.13. Cooperation and Technical Assistance

The Parties shall endeavour to provide technical assistance and cooperation through the development of training programmes with a view to achieving a better understanding of their respective government procurement systems and statistics and better access to their respective markets.

Article 16.14. Relationship to other Chapters

In the event of incompatibility between any provision of this chapter and any other provision of the chapter shall prevail to the extent of the inconsistency.

In the case of Chile:

a) Office of the Controller-General;

b) Central Bank;

c) Armed forces;

d) Security forces;

e) Municipalities;

f) National Council of Television;

g) The State enterprises;

h) Judiciary (Courts of Justice);

i) National legislature (Congress);

j) Constitutional Court;

k) Electoral Commission;

l) Regional electoral courts;

m) Higher Education Council; and

n) Public prosecutor.

In the case of Costa Rica:

a) Office of the Controller-General;

b) The Ministry of Interior and Police;

c) Ministry of Public Security;

d) The Central Bank of Costa Rica;

e) The autonomous and semi-autonomous institutions or any other public entity and state enterprise;

f) Legislature;

g) Judiciary;

h) Supreme Electoral Tribunal;

i) The Office of the Ombudsman;

j) Municipalities;

k) Non-State public authorities;

l) Duty-free shops and similar entities subject to private law in its procurement; and

m) The Council of Higher Education.

In the case of El Salvador:

a) Court of Auditors of the Republic;

b) Reserve Bank of El Salvador;

c) Ministry of Defence;

d) National Public Security Academy;

e) National Civil Police;

f) Municipalities;

g) Directorate-General of Public Entertainment, Radio and Television;

h) Judicial body;

i) Legislative body;

j) Supreme Electoral Tribunal;

k) Public Prosecutor;

l) National Charitable Lottery;

m) Directorate-General for mail;

n) Autonomous Port Executive Commission, CEPA; and

o) Hydroelectric Executive Commission of the Lempa River, CEL.

In the case of Guatemala:

a) Ministry of Defence;

b) National Institute of rural electrification;

c) Office of the Comptroller General of Accounts;

d) Bank of Guatemala;

e) The Ministry of Interior;

f) Judicial body;

g) Congress;

h) Constitutional Court;

i) Supreme Electoral Tribunal;

j) Public Prosecutor;

k) Attorney General's Office;

l) State and municipal government enterprises;

m) Municipalities; and

n) Public entities, decentralized and autonomous, in accordance with its establishment by law or provision or another are excluded from the application of procurement procedures contained in the Law of the Contracting State and its Rules of Procedure, Decree No 57-92 of the Congress of the Republic and its regulation.

In the case of Honduras:

a) National tribunal of elections;

b) State public enterprises;

c) Municipalities;

d) The President of the Republic;

e) Ministry of National Defence;

f) Ministry of Security;

g) Family Assistance Programme (PRAF);

h) National Supply of Basic Products (BANASUPRO);

i) Standing Committee on Contingencies (COPECO); and

j) Public entities, in accordance with its law or establishment or by another provision, are excluded from the application of public procurement procedures.

Annex 16.02 . Classes of recruitment

The classes of public procurement that are excluded from this chapter are the following:

a) Defence procurements of strategic nature and other procurements that relate to national security;

b) Public procurement staff to compliance functions of the entities; and

c) Procurements made with financing institutions of States, Regional or multilateral or persons requiring conditions inconsistent with the provisions of this chapter.

Part Seventh. Administrative and Institutional Provisions

Chapter 17. Transparency

Article 17.01. Definitions

For purposes of this chapter, Administrative Ruling of general application, an administrative ruling or interpretation that applies to all persons and fact situations that generally fall within its scope, and that establishes a standard of conduct, but does not include:

a) Orders or judgements in administrative procedures applicable to a person, in particular goods or service of another Party in a specific case; or

b) A decision to deal with respect to a particular act or practice.

Article 17.02. Information Center

1. Each Party shall designate a branch or office as an information centre to facilitate communication between the parties on any matter covered by this Treaty.

2. When a party so requests, the Information Centre of the other party shall indicate the office or official responsible for the matter and provide the required support to facilitate communication with the requesting party.

Article 17.03. Publication

1. Each Party shall ensure that its laws, regulations, procedures and administrative rulings of general application relating to any matter covered by this Agreement are promptly published or otherwise made available to the parties and to any interested person.

2. To the extent possible, each Party shall:

a) Publish in advance any such measure that it proposes to adopt; and

b) Provide interested persons and the other party a reasonable opportunity to comment on such proposed measures.

Article 17.04. Information Supply

1. Each Party shall notify the other party to the extent possible, any existing or proposed measure considers that it might affect or substantially affect the interests of the other party under the terms of this Treaty.

  • Part   One General Aspects 1
  • Chapter   1 Initial Provisions 1
  • Article   1.01 Establishment of the Free Trade Area 1
  • Article   1.02 Objectives 1
  • Article   1.03 Compliance 1
  • Article   1.04 Relation to other International Agreements 1
  • Article   1.05 Succession of Treaties 1
  • Chapter   2 General Definitions 1
  • Article   2.01 Definitions of General Application 1
  • Part   Two Trade In Goods 1
  • Chapter   3 NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 1
  • Section   A Definitiones and Scope of Application 1
  • Article   3.01 Definitions 1
  • Article   3.02 Scope 1
  • Section   B National Treatment 1
  • Article   3.03 National Treatment 1
  • Section   C Tariffs 1
  • Article   3.04 Tariff Relief 1
  • Article   3.05 Temporary Admission of Goods 1
  • Article   3.06 Duty-free Imports for Commercial Samples of Negligible or No Commercial Value and Printed Advertising Materials 2
  • Article   3.07 Goods Reimported after Having Been Repaired or Altered Altered 2
  • Article   3.08 Customs Valuation 2
  • Article   3.09 Restrictions on Exports to Support Programmes 2
  • Section   D Non-tariff Measures 2
  • Article   3.10 Import and Export Restrictions 2
  • Article   3.11 Customs Processing Fees and Consular Fees 2
  • Article   3.12 Geographical Indications 2
  • Article   3.13 A Country of Origin Marking 2
  • Article   3.14 Export Taxes 2
  • Article   3.15 International Obligations 2
  • Article   3.16 Committee on Trade In Goods 2
  • Chapter   4 Rules of Origin 2
  • Article   4.01 Definitions 2
  • Article   4.02 Instruments of Application and Interpretation 2
  • Article   4.03 Originating Goods 2
  • Article   4.04 Minimal Operations or Processes 2
  • Article   4.05 Indirect Materials 2
  • Article   4.06 Cumulation 2
  • Article   4.07 Regional Content Value 2
  • Article   4.08 De Minimis 3
  • Article   4.09 Consumable Goods 3
  • Article   4.10 Sets or Assortments of Goods 3
  • Article   4.11 Accessories, Spare Parts and Tools 3
  • Article   4.12 Containers and Packaging Materials In Which a Good Is Presented for Retail Sale 3
  • Article   4.13 Packing Materials and Containers for Shipment 3
  • Article   4.14 Transhipment and Direct Consignment or International Transit 3
  • Chapter   5 Customs Procedures 3
  • Article   5.01 Definitions 3
  • Article   5.02 Certificate of Origin and Declaration 3
  • Article   5.03 Obligations with Respect to Imports 3
  • Article   5.04 Obligations with Regard to Exports 3
  • Article   5.05 Exceptions 3
  • Article   5.06 Invoicing by a Third-country Operator 3
  • Article   5.07 Confidentiality 3
  • Article   5.08 Procedures for Verification of Origin 3
  • Article   5.09 Resolution Advance 3
  • Article   5.10 Review and Challenge 4
  • Article   5.11 Sanctions 4
  • Article   5.12 Uniform Regulations 4
  • Article   5.13 Cooperation 4
  • Chapter   6 Safeguard Measures 4
  • Article   6.01 Definitions 4
  • Article   6.02 Bilateral Safeguard Measures 4
  • Article   6.03 Global Safeguard Measures 4
  • Article   6.04 Proceedings Relating to Safeguard Measures 4
  • Article   6.05 Settlement of Disputes Regarding Safeguard Measures 4
  • Chapter   7 Unfair Trading Practices 4
  • Article   7.01 Scope of Application 4
  • Article   7.02 Future Work Program 5
  • Part   Three Technical Barriers to Trade 5
  • Chapter   8 Sanitary and Phytosanitary Measures 5
  • Article   8.01 Definitions 5
  • Article   8.02 General Provisions 5
  • Article   8.03 Rights of Parties 5
  • Article   8.04 Obligations of the Parties 5
  • Article   8.05 International Standards and Harmonization 5
  • Article   8.06 Equivalence 5
  • Article   8.07 Risk Assessment and Determination of the Appropriate Level of Sanitary and Phytosanitary Protection 5
  • Article   8.08 Recognition of Disease or Pest Free Areas and Areas of Low Disease or Pest Prevalence 5
  • Article   8.09 Control Procedures, Inspection and Approval 5
  • Article   8.10 Transparency 5
  • Article   8.11 Committee on Sanitary and Phytosanitary Measures 5
  • Chapter   9 Measures of Standardization , Metrology and Authorization Procedures 5
  • Article   9.01 Definitions 5
  • Article   9.02 General Provisions 5
  • Article   9.03 Scope of Application 5
  • Article   9.04 Basic Rights and Obligations 5
  • Article   9.05 Risk Assessment 5
  • Article   9.06 Compatibility and Equivalence 5
  • Article   9.07 Conformity Assessment 5
  • Article   9.08 Authorisation Procedures 6
  • Article   9.09 Metrology Standards 6
  • Article   9.10 Notification 6
  • Article   9.11 Information Centres 6
  • Article   9.12 Committee of Standardization, Metrology and Authorisation Procedures 6
  • Article   9.13 Technical Cooperation 6
  • Part   Four Investment, Services and Related Matters 6
  • Chapter   10 Investment 6
  • Article   10.01 Scope of Application 6
  • Article   10.02 Future Work Program 6
  • Annex 10.01  Scope of application 6
  • Chapter   11 Cross-border Trade In Services 6
  • Article   11.01 Definitions 6
  • Article   11.02 Scope of Application 6
  • Article   11.03 National Treatment 6
  • Article   11.04 Most Favoured Nation Treatment 6
  • Article   11.05 Standard of Treatment 6
  • Article   11.06 Local Presence 6
  • Article   11.07 Granting of Permits, Authorizations, Licenses or Certifications 6
  • Article   11.08 Reservations 6
  • Article   11.09 Non-discriminatory Quantitative Restrictions 6
  • Article   11.10 Denial of Benefits 6
  • Article   11.11 Future Liberalization 6
  • Article   11.12 Proceedings 6
  • Article   11.13 Professional Services 6
  • Article   11.14 Committee on Cross-border Investment and Services 6
  • Annex 11.12   Professional services 6
  • Annex 11.14   Committee on cross-border investment and services 6
  • Chapter   12 Air Transport 6
  • Article   12.01 Scope of Application 6
  • Article   12.02 Consolidation of Measures 6
  • Article   12.03 Dispute Settlement 6
  • Article   12.04 Air Transport Committee 7
  • Annex 12.01   Scope of application 7
  • Annex 12.01   Committee on air transport 7
  • Chapter   13 Telecommunications 7
  • Article   13.01 Exclusion 7
  • Article   13.02 Definitions 7
  • Article   13.03 Scope of Application 7
  • Article   13.04 Access to Networks and Public Telecommunications Services and Use 7
  • Article   13.05 Conditions for the Provision of Value-added or Improved Services 7
  • Article   13.06 Measures Related to Standardization 7
  • Article   13.07 Monopolies or Anticompetitive Practices 7
  • Article   13.08 Transparency 7
  • Article   13.09 Relationship to other Chapters 7
  • Article   13.10 Relationship with Organizations and International Treaties 7
  • Article   13.11 Technical Cooperation and other Consultations 7
  • Chapter   14 Temporary Entry of Business Persons 7
  • Article   14.01 Definitions 7
  • Article   14.02 General Principles 8
  • Article   14.03 General Obligations 8
  • Article   14.04 Authorisation for Temporary Entry 8
  • Article   14.05 Provision of Information 8
  • Article   14.06 Settlement of Disputes 8
  • Article   14.07 Relationship to other Chapters 8
  • Annex 14.04   Temporary entry for business persons 8
  • Section   A Business Visitors 8
  • Section   B Traders and Investors 8
  • Section   C Transfers of Personal Within an Enterprise 8
  • Annex 14.04   Specific provisions for the country for temporary entry of business persons 8
  • Appendix 14.04(A)(1)   Business visitors 8
  • Part   Fifth Competition Policy 8
  • Chapter   15 Competition Policy 8
  • Article   15.01 Cooperation 8
  • Article   15.02 State Monopolies and Enterprises 8
  • Part   Sixth Procurement 8
  • Chapter   16 Procurement 8
  • Article   16.01 Definitions 8
  • Article   16.02 Objective and Scope 8
  • Article   16.03 General Rights and Obligations 9
  • Article   16.04 National Treatment and Non-discrimination 9
  • Article   16.05 Provision of Information and Transparency 9
  • Article   16.06 Technical Specifications 9
  • Article   16.07 Denial of Benefits 9
  • Article   16.08 Avoidance Proceedings 9
  • Article   16.09 Modifications to Coverage 9
  • Article   16.10 Privatization 9
  • Article   16.11 Information Technology 9
  • Article   16.12 Committee on Government Procurement 9
  • Article   16.13 Cooperation and Technical Assistance 9
  • Article   16.14 Relationship to other Chapters 9
  • Annex 16.02   Classes of recruitment 9
  • Part   Seventh Administrative and Institutional Provisions 9
  • Chapter   17 Transparency 9
  • Article   17.01 Definitions 9
  • Article   17.02 Information Center 9
  • Article   17.03 Publication 9
  • Article   17.04 Information Supply 9
  • Article   17.05 Hearing, Legality and Due Process Guarantees 10
  • Article   17.06 Administrative Procedures for the Adoption of Measures of General Application 10
  • Article   17.07 Review and Challenge 10
  • Article   17.08 Communications and Notifications 10
  • Chapter   18 Administration of the Treaty 10
  • Section   A Committee, Subcommittee and Secretariat 10
  • Article   18.02 Free Trade Subcommittee 10
  • Article   18.03 Secretariat 10
  • Section   B Committees, Subcommittees and Expert Groups 10
  • Article   18.04 General Provisions 10
  • Article   18.05 Committees 10
  • Article   18.06 Subcommittees 10
  • Article   18.07 Experts Group 10
  • Annex 18.01(1)   Officials of the Free Trade Commission 10
  • Annex 18.01 (4)  Implementation of the modifications approved by the Commission 10
  • Annex 18.02   Officials of the Free Trade Subcommittee 10
  • Annex 18.03   Remuneration and Payment of Expenses 10
  • Annex 18.05   Committees 10
  • Article   19 Dispute Settlement 10
  • Section   A Settlement of Disputes 10
  • Article   19.01 Definitions 10
  • Article   19.02 Cooperation 10
  • Article   19.03 Scope 10
  • Article   19.04 Dispute Settlement Understanding 10
  • Article   19.05 In Case of Urgency 10
  • Article   19.06 Consultations 11
  • Article   19.07 Intervention by the Commission, Good Offices, Mediation and Conciliation 11
  • Article   19.08 Request for Integration of the Arbitration Panel 11
  • Article   19.09 List of Arbitrators 11
  • Article   19.10 Qualities of Arbitrators 11
  • Article   19.11 Integration of the Arbitral Group 11
  • Article   19.12 Model Rules of Procedure 11
  • Article   19.13 Third Parties 11
  • Article   19.14 Information and Technical Advice 11
  • Article   19.15 Preliminary Report 11
  • Article   19.16 Final Report 11
  • Article   19.17 Implementation of the Final Report 11
  • Article   19.18 Suspension of Benefits 11
  • Section   B Internal Procedures and Private Commercial Dispute Resolution 11
  • Article   19.19 Interpretation of the Treaty Before Domestic Judicial and Administrative Authorities. 11
  • Article   19.20 Rights of Individuals 11
  • Article   19.21 Alternative Means of Dispute Settlement between Individuals 11
  • Annex 19.03   Nullification and Impairment 11
  • Chapter   20 Exceptions 11
  • Article   20.01 Definitions 11
  • Article   20.02 General Exceptions 11
  • Article   20.03 National Security 11
  • Article   20.04 Balance of Payments 11
  • Article   20.05 Exceptions to Disclosure of Information 12
  • Article   20.06 Taxation 12
  • Annex 20.06   Double taxation 12
  • Chapter   21 Final Provisions 12
  • Article   21.01 Modifications 12
  • Article   21.02 Reservations 12
  • Article   21.03 Duration 12
  • Article   21.04 Annexes 12
  • Article   21.05 Denunciation 12
  • Annex I   12
  • Annex II   12
  • Annex III   12