Title
Free Trade Agreement between China and Costa Rica
Preamble
Article Article
The Government of the People's Republic of China ("China") and the Government of the Republic of Costa Rica ("Costa Rica") hereinafter referred to as "the Parties";
COMMITTING to strengthen the bonds of friendship and cooperation between the Parties;
DESIRING to contribute to the expansion and development of world trade and reaffirming their willingness to strengthen and reinforce the multilateral trading system as reflected in the World Trade Organization (hereinafter "WTO") and other multilateral, regional and bilateral agreements and arrangements to which they are both parties;
BUILDING on their respective rights and obligations under the WTO Agreement and other multilateral, regional and bilateral instruments of cooperation; SHARING the belief that this Free Trade Agreement shall produce benefits to each Party;
RESOLVING to promote reciprocal trade through the establishment of clear and mutually advantageous trade rules and the avoidance of trade barriers and distortions to their reciprocal trade;
RECOGNIZING the importance of transparency in international trade;
RECOGNIZING that this Agreement should be implemented with a view towards raising the standards of living, creating new job opportunities and promoting sustainable development; and
DESIRING to strengthen their economic partnership to bring economic and social benefits to their people; HAVE AGREED as follows:
Body
Section CHAPTER 1. Initial Provisions
Article 1. Establishment of a Free Trade Area
The Parties to this Agreement, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish a free trade area.
Article 2. Objectives
1. The objectives of this Agreement are to:
(a) encourage expansion and diversification of trade between the Parties;
(b) facilitate trade in goods and services;
(c) establish comprehensible rules in order to ensure a regulated and transparent environment for the trade of goods and services between the Parties;
(d) increase investment opportunities in the territories of the Parties;
(e) ensure an adequate and effective protection of intellectual property rights in the territories of the Parties, taking into consideration the economic situation and the social or cultural need of each Party; as well as to promote technological innovation and the transfer and dissemination of technology between the Parties;
(f) confirm their commitment to the promotion of trade and reaffirm their aspiration to achieve an appropriate balance between the economic, social and environmental components of sustainable development;
(g) create effective procedures for the implementation and application of this Agreement, for its joint administration, and for the resolution of disputes; and
(h) establish a framework for further bilateral cooperation to expand and enhance the benefits of this Agreement.
2. The Parties shall interpret and apply the provisions of this Agreement in the light of its objectives set out in paragraph 1 and shall also interpret them in accordance with customary rules of interpretation of public international law.
Article 3. Relation to other International Agreements
1. Nothing in this Agreement shall derogate from the existing rights and obligations of a Party under the WTO Agreement or any other multilateral or bilateral agreement to which it is a party.
2. In the event of any inconsistency between this Agreement and any other agreement to which the Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution in accordance with customary rules of interpretation of public international law.
Article 4. Extent of Obligations
The Parties shall ensure that all necessary measures are taken in order to give effect to the provisions of this Agreement in their respective territories.
Chapter 2. Definitions of General Application
Article 5. Definitions
For purposes of this Agreement, unless otherwise specified:
Commission means the Free Trade Commission established under Article 135 (The Free Trade Commission); customs administration means the competent authority that is responsible under the law of a Party for the administration of customs laws and regulations;
customs duty means any duty or charge of any kind imposed on or in connection with the importation of a good, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article III.2 of GATT 1994 and with Article 8 (National Treatment) of Chapter 3 (National Treatment and Market Access for Trade in Goods);
(b) antidumping or countervailing duty imposed consistently with Article VI of GATT 1994, the WTO Agreement on Implementation of Article VI of GATT 1994, the WTO Agreement on Subsidies and Countervailing Measures and with Chapter 8 (Trade Remedies);
(c) fee or other charge imposed consistently with Article 13 (Administrative Fees and Formalities) of Chapter 3 (National Treatment and Market Access for Trade in Goods);
Customs Valuation Agreement means the WTO Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994;
days means calendar days;
existing means in effect on the date of entry into force of this Agreement;
GATS means the WTO General Agreement on Trade in Services;
GATT 1994 means the WTO General Agreement on Tariffs and Trade 1994;
goods of a Party means domestic products as these are understood in the GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes and Chapter Notes as adopted by the World Customs Organization;
heading means the first four digits in the tariff classification number under the Harmonized System;
measure includes any law, regulation, procedure, requirement, or practice; national means a natural person who has the nationality of a Party according to Article 6 (Country Specific Definitions);
originating means qualifying under the rules of origin set out in Chapter 4 (Rules of Origin and Related Operational Procedures);
Party means any State for which this Agreement is in force; person means a natural person or a juridical person; person of a Party means a national or a juridical person of a Party;
preferential tariff treatment means the duty rate applicable under this Agreement to an originating good; Safeguards Agreement means the WTO Agreement on Safeguards;
SPS Agreement means the WTO Agreement on the Application of Sanitary and Phytosanitary Measures;
SPS measure means any sanitary or phytosanitary measure as referred to in Annex A, paragraph 1 of the SPS Agreement; subheading means the first six digits in the tariff classification number under the Harmonized System;
TBT Agreement means the WTO Agreement on Technical Barriers to Trade; territory means for a Party the territory of that Party as set out in Article 6 (Country Specific Definitions);
TRIPS Agreement means the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights;
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on 15 April 1994.
Article 6. Country Specific Definitions
For purposes of this Agreement, unless otherwise specified:
1. national means:
(a) with respect to China, a natural person who has the nationality of China according to the laws of China; and
(b) with respect to the Republic of Costa Rica, a Costa Rican as defined in Articles 13 and 14 of the Political Constitution of the Republic of Costa Rica (Constitución Política de la República de Costa Rica).
2. territory means:
(a) with respect to China, the territory of the People's Republic of China, including its land territory, air space, internal waters and territorial sea, and any area beyond its territorial sea, within which it has sovereign rights or jurisdiction of exploration for and exploitation of the natural resources thereof in accordance with international law and its internal laws; and
(b) with respect to the Republic of Costa Rica, the national territory including air and maritime space, where the State exercises complete and exclusive sovereignty or jurisdiction in accordance with its domestic legislation and international law.
Chapter 3. National Treatment and Market Access for Trade In Goods
Article 7. Scope and Coverage
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties. National Treatment
Article 8. National Treatment
1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of the GATT 1994, including its interpretative notes, and to this end Article III of the GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
2. Paragraph 1 shall not apply to the measures set out in Annex 1 (National Treatment and Import and Export Restrictions). Tariff Elimination
Article 9. Tariff Elimination
1. Except as otherwise provided in this Agreement, no Party may increase any existing customs duty, or adopt any new customs duty, on an originating good of the other Party.
2. Except as otherwise provided in this Agreement, each Party shall eliminate its customs duties on originating goods of the other Party, in accordance with Annex 2 (Tariff Elimination).
3. The schedules attached to Annex 2 (Tariff Elimination) shall not apply to used goods, including those identified as such in headings or subheadings of the Harmonized System. Used goods also include those goods that are reconstructed, repaired, remanufactured or any other similar name given to goods that, after having been used, have been subject to some kind of process to restore their original characteristics or specifications, or to restore the functionality they had when they were new.
4. On the request of any Party, the Parties shall consult to consider accelerating the elimination of customs duties set out in their schedules attached to Annex 2 (Tariff Elimination).
5. Notwithstanding Article 135 (The Free Trade Commission), an agreement between the Parties to accelerate the elimination of a customs duty on a good, shall supersede any duty rate or staging category determined pursuant to their schedules attached to Annex 2 (Tariff Elimination) for such good when approved by the Parties in accordance with their applicable legal procedures.
6. For greater certainty, a Party may:
(a) raise a customs duty to the level established in its Schedule to Annex 2 (Tariff Elimination) following a unilateral reduction; or
(b) maintain or increase a customs duty as authorized by the Dispute Settlement Body of the WTO or in accordance with the relevant provisions of Chapter 14 (Dispute Settlement) of this Agreement.
7. The Parties agree that the base rates for tariff elimination are each Party's applied customs duties on 1st January 2009, which are established in their respective schedule attached to Annex 2 (Tariff Elimination). Special Regimes
Article 10. Temporary Admission of Goods
1. Each Party shall grant duty-free temporary admission for the following goods, regardless of their origin:
(a) professional equipment, such as equipment used for scientific research, pedagogical or medical activities, the press or television and cinematographic purposes, necessary for a person who qualifies for temporary entry pursuant to the laws of the importing Party;
(b) goods intended for display or demonstration at exhibitions, fairs, meetings, or similar events;
(c) commercial samples; and
(d) goods admitted for sports purposes.
2. Each Party shall, at the request of the person concerned and for reasons its customs administration considers valid, extend the time limit for temporary admission beyond the period initially fixed in accordance with its domestic law.
3. No Party shall condition the duty-free temporary admission of a good referred to in paragraph 1, other than to require that such good:
(a) be used solely by or under the personal supervision of a national or resident of the other Party in the exercise of the business activity, trade, profession or sport of that person;
(b) not be sold or leased while in its territory;
(c) be accompanied by the deposit of a bond or security in an amount no greater than the charges that would otherwise be owed on entry or final importation, releasable on exportation of the good;
(d) be capable of identification when exported;
(e) be exported on the departure of the person referenced in subparagraph (a), or within such other period related to the purpose of the temporary admission as the Party may establish, or within 6 months, unless extended;
(f) be admitted in no greater quantity than is reasonable for its intended use; and (g) be otherwise admissible into the Party's territory under its domestic law.
4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the good plus any other charges or penalties provided for under its domestic law.
5. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than that through which it was admitted.
6. Each Party shall provide that its customs administration or other competent authority shall relieve the importer or another person responsible for a good admitted under this Article from any liability for failure to re-export the good on presentation of proof to the satisfaction of the customs administration of the importing Party that the good has been destroyed by reason of force majeure. Non-Tariff Measures
Article 11. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, no Party shall adopt or maintain any non-tariff measure that prohibits or restricts the importation of any good of the other Party or on the exportation or sale for export of any good destined to the territory of the other Party, except in accordance with Article XI of the GATT 1994 and its interpretative notes, and to this end Article XI of the GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
2. Paragraph 1 shall not apply to the measures established in Annex 1 (National Treatment and Import and Export Restrictions).
Article 12. Import Licensing
1. No Party shall adopt or maintain a measure that is inconsistent with the WTO Agreement on Import Licensing Procedures.
2. Each Party shall notify the other Party of any existing import licensing procedures and the list of goods subject to such procedures upon the entry into force of this Agreement.
3. Each Party shall publish any new import licensing procedures and any modification to either the existing import licensing procedures or the list of goods subject to such procedures, if possible, 21 days before it takes effect and, in any event, no later than such effective date.
4. Each Party shall notify the other Party of any other new import licensing procedures, any modifications to either the existing import licensing procedures or the list of goods subject to such procedures, within 60 days of publication. Such publication shall be in accordance with the procedures set out in the WTO Agreement on Import Licensing Procedures.
5. Notification provided under paragraphs 2 and 4 shall include the information specified in Article 5 of the WTO Agreement on Import Licensing Procedures.
Article 13. Administrative Fees and Formalities
1. Each Party shall ensure, in accordance with Article VIII.1 of the GATT 1994 and its interpretative notes, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charge applied consistently with Article III.2 of the GATT 1994, and antidumping and countervailing duties) imposed on or in connection with importation or exportation are limited to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. No Party shall require consular transactions, including related fees and charges, in connection with the importation of any good of the other Party.
3. Each Party shall make available and maintain, through the Internet or a comparable computer-based telecommunications network, a current list of the fees and charges it imposes in connection with importation or exportation. Other Measures
Article 14. Customs Valuation
The Customs Valuation Agreement and the decisions taken by the WTO Committee on Customs Valuation are incorporated into and made part of this Agreement, mutatis mutandis, and the customs law of each Party shall comply with them. Agriculture
Article 15. Scope and Coverage
1. This Section applies to the measures related to agricultural trade adopted or maintained by the Parties.
2. For purposes of this Agreement, agricultural goods mean those goods referred to in Article 2 of the WTO Agreement on Agriculture.
Article 16. Agricultural Export Subsidies
1. The Parties share the objective of the multilateral elimination of export subsidies for agricultural goods, and shall work together toward an agreement in the WTO to eliminate those subsidies and prevent their reintroduction in any form.
2. Neither Party shall maintain, introduce or reintroduce any export subsidy on any agricultural good destined to the territory of the other Party.
3. If either Party considers that the other Party has failed to carry out its obligations under this Agreement by maintaining, introducing or re-introducing an export subsidy, such Party may request consultations with the other Party in accordance with Chapter 14 (Dispute Settlement) with a view to arriving to a mutually satisfactory solution.
Article 17. Domestic Support Measures for Agricultural Goods
In order to establish a fair and market-oriented agriculture trading system, the Parties agree to cooperate in the WTO agricultural negotiations on domestic support measures to provide for a substantial and progressive reduction in trade distorting agricultural support. Institutional Provisions
Article 18. Committee on Trade In Goods
1. The Parties hereby establish a Committee on Trade in Goods, comprising representatives of each Party.
2. The Committee shall consider matters arising under this Chapter, Chapter 4 (Rules of Origin and Related Operational Procedures) or Chapter 5 (Customs Procedures).
3. The Committee's functions shall include, inter alia:
(a) promoting trade in goods between the Parties, including through consultations on accelerating tariff elimination under this Agreement and other issues as appropriate;
(b) addressing barriers to trade in goods between the Parties, especially those related to the application of non-tariff measures, and, if appropriate, referring such matters to the Commission for its consideration;
(c) reviewing future amendments to the Harmonized System to ensure that each Party's obligations under this Agreement are not altered, and consulting in order to resolve any conflicts between: (i) subsequent amendments to Harmonized System 2007 and Annex 2 (Tariff Elimination); or (ii) Annex 2 (Tariff Elimination) and national nomenclatures;
(d) consulting on and endeavouring to resolve any difference that may arise among the Parties on matters related to the classification of goods under the Harmonized System; and
(e) establishing ad hoc working groups with specific functions.
4. The Committee shall meet at least once a year, unless otherwise agreed by the Parties. When special circumstances arise, the Committee shall meet at any time upon request of either Party or the Commission. Definitions
Article 19. Definitions
For purposes of this Chapter:
consular transactions means requirements that goods of a Party intended for export to the territory of the other Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas for commercial invoices, certificates of origin, manifests, shippers' export declarations, or any other customs documentation required on or in connection with importation;
duty-free means free of customs duty;
export subsidies shall have the meaning assigned to that term in Article 1(e) of the WTO Agreement on Agriculture, including any amendment to that Article;
goods intended for display or demonstration includes their component parts, ancillary apparatus and accessories; and
import licensing means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party.
Chapter 4. Rules of Origin and Related Operational Procedures
Article 20. Definitions
For purposes of this Section:
aquaculture means the farming of aquatic organisms including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seed stock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding, protection from predators, among others;
CIF means the value of the good imported inclusive of the cost of insurance and freight up to the port or place of entry in the country of importation;
FOB means the value of the good free on board, regardless of the mode of transportation inclusive of the cost of transport to the port or site of final shipment abroad;
fungible materials or goods means materials or goods, which are interchangeable for commercial purposes, whose properties are essentially identical;
Generally Accepted Accounting Principles means the recognized consensus or substantial authoritative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information and the preparation of financial statements. Generally Accepted Accounting Principles may encompass broad guidelines for general application, as well as detailed standards, practices, and procedures; good means any merchandise, product, article, or material;
material means a good used in the production of another good, including any components, ingredients, subassemblies, raw materials, parts or pieces;
neutral elements means the goods used in the production, testing or inspection of another good but not physically incorporated into the good by themselves;
non-originating materials or non-originating goods means materials or goods other than those which qualify as originating in accordance with the provisions of this Chapter, including materials or goods of undetermined origin;
originating materials or originating goods means materials or goods which qualify as originating in accordance with the provisions of this Chapter;
packing materials and containers for shipment means goods used to protect a good during its transportation or storage, other than containers or packaging materials used for retail sale;
producer means a person who engages in the production of a good; Product Specific Rules means rules which specify that a change in tariff classification, a Regional Value Content, a specific processing operation, or a combination of any of these criteria has to be satisfied for the goods as a result of processes of the non-originating materials used in the production performed in the territory of one or both Parties; and production means methods of obtaining goods including, but not limited to, growing, raising, mining, harvesting, fishing, farming, trapping, hunting, capturing, gathering, collecting, breeding, extracting, manufacturing, processing or assembling a good.
Article 21. Originating Goods
Except as otherwise required in this Chapter, a good shall be considered as originating in a Party when:
(a) the good is wholly obtained or produced in the territory of one or both Parties, as defined in Article 22 (Wholly Obtained Goods);
(b) the good is produced entirely in the territory of one or both Parties, exclusively from materials whose origin conforms to the provisions of this Chapter; or
(c) the good is produced in the territory of one or both Parties, using non-originating materials that conform to the Product Specific Rules and meet the other applicable provisions of this Chapter.
Article 22. Wholly Obtained Goods
For purposes of Article 21 (Originating Goods) subparagraph (a), the following goods shall be considered as wholly obtained or produced in the territory of one or both Parties:
(a) live animals born and raised in the territory of one or both Parties;
(b) goods obtained in the territory of one or both Parties from live animals1;
(c) plants and plant products harvested, picked or gathered in the territory of one or both Parties;
(d) goods obtained from hunting, trapping, fishing, aquaculture, farming, or capturing conducted in the territory of one or both Parties;
(e) minerals and other natural resources not included in subparagraphs (a) through (d) above, extracted or taken from its soil, waters, seabed or subsoil;
(f) goods extracted from the waters, seabed or subsoil outside the territorial sea of a Party, provided that the Party has sole rights to exploit such waters, seabed or subsoil under that Party's applicable domestic law, in accordance with relevant international agreements to which that Party is a party;
(g) goods of sea fishing and other products taken from the territorial sea or the Exclusive Economic Zone of a Party;
(h) goods of sea fishing and other products taken from the high sea by a vessel registered or recorded with a Party and flying or entitled to fly the flag of that Party;
(i) goods processed and/or made on board factory ships registered or recorded with a Party and flying or entitled to fly the flag of that Party, exclusively from goods referred to in subparagraphs (g) and (h) above;
(j) scrap and waste derived from processing operations in the territory of China or Costa Rica and fit only for the recovery of raw materials, or used goods collected in the territory of China or Costa Rica provided that such goods are fit only for the recovery of raw materials; and
(k) goods obtained or produced in the territory of one or both Parties solely from goods referred to in subparagraphs (a) to (j) above. 1 Products refer to those obtained from live animals without further processing, including milk, eggs, natural honey, hair, wool, semen and dung.
Article 23. Product Specific Rules
Except as otherwise provided in this Chapter, a good, using non-originating materials and produced in the territory of one or both Parties, shall comply with the corresponding origin criterion established, such as change in tariff classification, a Regional Value Content, processing operation rule, a combination of any of these criteria or other requirements specified in Annex 3 (Product Specific Rules of Origin) in determining the originating status of the goods.
Article 24. Change In Tariff Classification
For purposes of a change in tariff classification criterion provided in Article 23 (Product Specific Rules), the originating status shall be conferred to the goods only when the non-originating materials used in the production of the goods undergo a change of tariff classification specified in Annex 3 (Product Specific Rules of Origin), as a result of processes performed in the territory of one or both Parties. For these purposes, the Harmonized System shall be the basis of the classification of the goods.
Article 25. Regional Value Content
1. For purposes of the Regional Value Content (RVC) criterion of a good provided in Article 23 (Product Specific Rules), the RVC shall be calculated as follows: RVC = V – VNM x 100 V
where:
RVC: is the Regional Value Content, expressed as a percentage; V: is the value of the good, as defined in the Customs Valuation Agreement, adjusted on an FOB basis; and VNM: is the value of the non-originating materials, including materials of undetermined origin, as provided in paragraph 2.
2. The value of the non-originating materials shall be:
(a) the value of the good, as defined in the Customs Valuation Agreement, adjusted on a CIF basis; or
(b) the earliest ascertainable price paid or payable for the non-originating materials in the territory of the Party where the working or processing takes place. When the producer of a good acquires non-originating materials within that Party, the value of such materials shall not include freight, insurance, packing costs and any other costs incurred in transporting the material from the supplier's warehouse to the producer's location.
3. For purposes of calculating the Regional Value Content of the good, pursuant to paragraph 1, the value of the non-originating materials used by the producer in the production of the final good in the territory of the Party shall not include the value of non-originating materials used to produce originating materials that are subsequently used in the production of the final good.
Article 26. Processing Operations
For purposes of the processing operation rule provided in Article 23 (Product Specific Rules), the originating status shall be conferred only to the goods as a result of manufacturing or processing operations specified in Annex 3 (Product Specific Rules of Origin), which are carried out in the territory of one or both Parties.
Article 27. Accumulation
1. Where originating goods or materials of a Party are incorporated into a good in the other Party's territory, the goods or materials so incorporated shall be regarded to be originating in the latter's territory.
2. A good shall be considered as originating where its production is carried out by one or more producers in the territory of a Party, in such way that the production of the materials incorporated in that good, carried out in the territory of that Party, may be considered as part of the production of the good, provided that the good complies with the requirements established in Article 21 (Originating Goods) and all other applicable requirements in this Chapter.
Article 28. Minimal Operations or Processes That Do Not Confer Origin
The following operations or processes, either by themselves or in combination, are considered to be minimal operations or processes and do not confer origin:
(a) operations to ensure the preservation of goods in good condition during transport and storage;
(b) breaking-up and simple assembly of goods;
(c) packing, unpacking or repacking operations for purposes of sale or presentation; or
(d) slaughter of animals.
Article 29. De Minimis
A good that does not meet tariff classification change requirements, pursuant to the provisions of Annex 3 (Product Specific Rules of Origin), shall nonetheless be considered to be an originating good, provided that: (a) the value of all non-originating materials, as determined pursuant to Article 25 (Regional Value Content), that do not meet the tariff classification change requirement, does not exceed 10% of the FOB value of that good; and (b) the good meets all the other applicable requirements of this Chapter.
Article 30. Fungible Materials and Goods
1. In determining whether a good is an originating good, any fungible materials or goods shall be distinguished by:
(a) physical separation of the fungible goods or materials; or
(b) an inventory management method recognized in the Generally Accepted Accounting Principles of the exporting Party.
2. The inventory management method selected under paragraph 1 for a particular fungible good or material shall continue to be used for that good or material throughout the fiscal year.
Article 31. Neutral Elements
In determining whether a good is an originating good, the origin of the following neutral elements shall be disregarded:
(a) fuel, energy, catalysts and solvents;
(b) equipment, devices and supplies used for testing or inspecting the goods;
(c) gloves, glasses, footwear, clothing, safety equipment and supplies;
(d) tools, dies and moulds;
(e) spare parts and materials used in the maintenance of equipment and buildings;
(f) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; and
(g) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.
Article 32. Sets
Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all the components of the sets are originating. Nevertheless, when a set is composed of originating and non-originating goods, the set as a whole shall be regarded as originating, provided that the value of the non-originating goods as determined pursuant to Article 25 (Regional Value Content) does not exceed 15% of the total value of the set.
Article 33. Packing, Packages and Containers
1. Containers and packing materials used for the transport of goods shall not be taken into account in determining the origin of the goods.
2. Where goods are subject to a change in tariff classification criterion set out in Annex 3 (Product Specific Rules of Origin), the origin of the packaging materials and containers in which goods are packaged for retail sale shall be disregarded in determining the origin of the goods, provided that the packaging materials and containers are classified with the goods. However, if the goods are subject to a Regional Value Content requirement, the value of the packaging materials and containers used for retail sale shall be taken into account as originating materials or non-originating materials, as the case may be, when determining the origin of the goods.
Article 34. Accessories, Spare Parts and Tools
1. Accessories, spare parts, or tools presented as part of the good upon importation shall be disregarded when determining the origin of the good, provided that:
(a) the accessories, spare parts, or tools are classified with and not invoiced separately from the good; and
(b) the quantities and values of accessories, spare parts, or tools are commercially customary for the good.
2. Where goods are subject to a Regional Value Content requirement, the value of the accessories, spare parts, or tools, shall be taken into account as originating materials or non-originating materials, as the case may be, in calculating the Regional Value Content of the goods.
Article 35. Direct Consignment
1. The originating goods of the Parties claiming for preferential tariff treatment shall be directly consigned between the Parties.
2. Originating goods whose transport involves transit through one or more non-Parties, with or without transhipment or temporary storage in such non-Parties under control of the customs administration of such countries, are still considered directly consigned between the Parties, provided that:
(a) the transit entry is justified for geographical reason or by consideration related exclusively to international transport requirements;
(b) the goods do not enter into trade or consumption there;
(c) the goods do not undergo any operation there other than unloading and reloading, repacking, or any operation required to keep them in good condition;
(d) in case where the goods are temporarily stored in the territory of a non-Party, as provided in paragraph 2, stay of the goods in that non-Party shall not exceed 3 months from the date of its entry.
3. For purposes of paragraph 2, the following documents shall be submitted to the customs administration of the importing Party upon import declaration of the goods:
(a) the Through Bill of Lading and other supporting documents for those goods with trans-shipment in a non-Party; and
(b) in case where the goods are temporarily stored in the territory of a non-Party, additional documentary evidence provided by the customs administration of such non-Party. Where conditions under subparagraphs (a), (b), (c) and (d) are not met, such good will not be considered as originating. Related Operational Procedures
Article 36. Definitions
For purposes of this Section:
authorized body means any body designated under the domestic law of a Party or by the governmental authority of a Party to issue a Certificate of Origin; and
competent authority means:
(a) in the case of China, the General Administration of Customs is responsible for the organization and implementation of the Rules of Origin under this Agreement in accordance with domestic laws, the General Administration of Quality Supervision, Inspection and Quarantine is responsible for the administration of issuance of the Certificate of Origin in accordance with domestic laws; and
(b) in the case of Costa Rica, the National Customs Service (Servicio Nacional de Aduanas).
Article 37. Certificate of Origin
1. To qualify originating goods for preferential tariff treatment, the Certificate of Origin, as set out in Annex 4 (Certificate of Origin), shall be issued by the authorized body or bodies of the exporting Party, on written application by the exporter, together with supporting documents, and shall be submitted on importation to the customs administration of the importing Party. The Certificate of Origin shall:
(a) contain a unique certificate number;
(b) cover one or more goods under one consignment;
(c) state the basis on which the goods are deemed to qualify as originating for purposes of Section A of this Chapter;
(d) contain security features, such as specimen signatures or stamps as advised to the importing Party by the exporting Party; and (e) be completed in English by typing.
2. A Certificate of Origin shall remain valid for 12 months from the date of issuance.
3. In principle, the Certificate of Origin shall be issued before or at the time of exportation. Nevertheless, a Certificate of Origin may exceptionally be issued retrospectively after exportation, on the condition that the exporter provides all the necessary commercial documents and export declaration processed by the customs administration of the exporting Party, provided that:
(a) it was not issued at the time of exportation due to force majeure, or errors, or involuntary omissions or other special circumstances as may be deemed satisfied under the domestic law of each Party, where applicable; or
(b) it is demonstrated to the satisfaction of the authorized body that the Certificate of Origin was issued but was not accepted at importation for technical reasons. The validation period shall remain the same as indicated in the Certificate originally issued.
4. Where paragraph 3 is applied, the Certificate shall be issued retrospectively within 12 months from the date of exportation, and shall be endorsed with the words "ISSUED RETROSPECTIVELY".
5. In the event of theft, loss or accidental destruction of a Certificate of Origin, the exporter or producer may make a written request to the authorized body or bodies of the exporting Party for issuing a certified copy, provided that the original copy previously issued has been proved unused as a result of verification. The certified copy shall bear the words "CERTIFIED TRUE COPY with the original Certificate of Origin number ___ dated ___".
Article 38. Authorized Bodies
1. A Certificate of Origin shall be issued only by the authorized body or bodies in the exporting Party.
2. The competent authority of the exporting Party shall inform the competent authority of the importing Party of the name of each authorized body, as well as the relevant contact details of each authorized body, and shall provide details of any security features for the Certificate of Origin, including official stamps used by each authorized body, prior to the issuance of any Certificates by that body. Any change in the information provided above shall be informed promptly to the competent authority of the other Party.
Article 39. Supporting Documents
The documents used for purposes of proving that the goods covered by a Certificate of Origin can be considered as originating goods and fulfil the other requirements of this Chapter may include, inter alia, the following:
(a) direct evidence of the processes carried out by the exporter or supplier to obtain the goods concerned, contained for example in his accounts or internal book-keeping;
(b) documents proving the originating status of the materials used, where these documents are used in accordance with the domestic law;
(c) documents proving the working or processing of materials, where these documents are used in accordance with the domestic law; or
(d) Certificates of Origin proving the originating status of the materials used.
Article 40. Preservation of Certificate of Origin and Supporting Documents
1. The exporter applying for the issuance of a Certificate of Origin shall keep, for at least 3 years, the documents referred to in Article 39 (Supporting Documents), from the date of issuance of the Certificate.
2. The authorized body or bodies of the exporting Party issuing a Certificate of Origin shall keep a copy of the Certificate of Origin for at least 3 years, from its date of issuance.
Article 41. Obligations Regarding Importations
Except as otherwise provided in this Chapter, each Party shall require an importer in its territory that claims preferential tariff treatment to:
(a) make a written statement in the import customs declaration, indicating that the good qualifies as an originating good;
(b) posses a valid Certificate of Origin, at the time the import customs declaration referred to in subparagraph (a) is made; and
(c) submit the original Certificate of Origin and other documentary evidence related to the importation of the goods, upon requirements of the customs administration of the importing Party.
Article 42. Refund of Import Customs Duties or Deposit
1. Where a good is imported into the territory of a Party without the submission of a Certificate of Origin under this Agreement, the customs administration of the importing Party may, where applicable, impose the applied non-preferential customs duties, or require payment of a deposit or guarantee equivalent to the full duties on that good. The importer may, within 1 year, after the payment of the customs duties, apply for a refund of any excess import customs duties imposed, or apply for a refund of deposit or guarantee paid, within 3 months or such longer period as may be specified in the domestic law of the importing Party, after the payment of the deposit or guarantee, on presentation of:
(a) a valid Certificate of Origin issued in accordance with Article 37 (Certificate of Origin); and
(b) other documentary evidence related to the importation of the good as the customs administration of the importing Party may require; provided that the importer declares, on his own initiative, to the customs administration through a written statement upon importation, indicating that the good presented qualifies as an originating good.
2. No customs duties, deposit or guarantee shall be refunded in the case where the importer fails to declare upon importation, in the same way as specified in paragraph 1, to the customs administration that the good qualifies as an originating good, even though a valid Certificate of Origin is submitted subsequently.
Article 43. Exemption of Obligation of Submitting Certificate of Origin
1. Each Party shall provide that a Certificate of Origin shall not be required for:
(a) a commercial importation of a good whose value does not exceed US$ 600 or its equivalent amount in the Party's currency. Nevertheless, the Party may require a statement certifying that the good is qualified as an originating good;
(b) a non-commercial importation of a good whose value does not exceed US$ 600 or its equivalent amount in the Party's currency; or
(c) other cases where a Certificate of Origin is not required, as provided under its domestic law.
2. The exemptions established in paragraph 1 shall be applicable, provided that the importation does not form part of one or more importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the certification requirements set out in Article 37 (Certificate of Origin).
Article 44. Verification of Origin
1. For purposes of determining whether goods imported into the territory of a Party qualify as originating goods under this Chapter, the customs administration of the importing Party may verify origin of the goods, when there are reasonable grounds to doubt the accuracy or authenticity of the Certificate of Origin or when performing the control. The customs administration of the importing Party shall conduct the verification by means of:
(a) written requests for additional information from the importer;
(b) written requests for additional information from the exporter or producer in the territory of the exporting Party;
(c) written requests to the authorized body of the exporting Party to verify the origin of the goods, with a copy of such request being notified or communicated to the competent authority of the exporting Party; or (d) such other procedures as the competent authorities of the Parties may jointly decide, including a verification visit. 2. The customs administration of the importing Party which makes a written request for verification under subparagraph 1(c) shall specify the reasons of the request and provide any documents and information or copies thereof in support of such request.
3. The importer, exporter or producer, who is requested for verification under the subparagraphs 1(a) or 1(b), shall respond the results of the verification in such detail as requested by the requesting Party within 60 days (not extendable) from the date of notification of the written request. The authorized body which is requested to undertake the verification under subparagraph 1(c), shall respond the results of the verification in such detail as requested by the requesting Party, within 6 months from the date of the notification of the written request, to the competent authority of the importing Party, with a copy of the results of the verification being notified or communicated to the competent authority of the exporting Party.
4. The competent authority of the importing Party shall notify, in writing, to the competent authority of the exporting Party of the results of the determination on the origin of the good, including its legal basis and findings of fact.
Article 45. Denial of Preferential Tariff Treatment
1. A Party may deny preferential tariff treatment to a good when:
(a) the good imported does not qualify as originating in accordance with the provisions of this Chapter;
(b) the good imported does not comply with the provisions on direct consignment under Article 35 (Direct Consignment);
(c) the competent authority of the exporting Party fails, as required under Article 38 (Authorized Bodies), to inform the competent authority of the importing Party of the name of the authorized body or bodies, any security features of the Certificate of Origin, or any change in the above information;
(d) the importer, exporter, producer or authorized bodies, as appropriate, requested by the importing Party, fails to comply with the requirements under paragraph 3 of the Article 44 (Verification of Origin);
(e) the Certificate of Origin has not been duly completed, signed, or stamped in accordance with the provisions under this Chapter;
(f) the data provided under the Certificate of Origin does not correspond to that of the supporting documents submitted; or
(g) the description, quantity and weight of goods, marks and number of packages, number and kinds of packages, as specified in the Certificate of Origin, do not conform to the goods presented.
2. In the event that the preferential tariff treatment is denied, the competent authority of the importing Party shall inform the importer of the decision on the denial of the preferential treatment and the reasons for that decision.
Article 46. Committee on Rules of Origin
1. The Parties hereby establish a Committee on Rules of Origin, comprising in the case of China, the General Administration of Customs, the General Administration of Quality Supervision, Inspection and Quarantine, and the Ministry of Commerce; and in the case of Costa Rica, the Ministry of Foreign Trade (Ministerio de Comercio Exterior) and the National Customs Service (Servicio Nacional de Aduanas).
2. The Committee shall meet on the request of a Party or the Commission to consider any matter arising under this Chapter.
3. The functions of the Committee on Rules of Origin, shall include:
(a) ensuring the effective, uniform and consistent administration of this Chapter, and enhancing the cooperation in this regard;
(b) keeping updated Annex 3 (Product Specific Rules of Origin) on the basis of the transposition of the Harmonized System;
(c) advising the Commission of proposed solutions to address issues related to:
(i) interpretation, application and administration of this Chapter;
(ii) calculation of the Regional Value Content; and
(iii) issues arising from the adoption by either Party of operational practices not in conformity with this Chapter that may adversely affect the flow of trade between the Parties.
Chapter 5. Customs Procedures
Article 47. Definitions
For purposes of this Chapter, customs administration means: (a) for China, the General Administration of Customs of the People's Republic of China; and (b) for Costa Rica, the National Customs Service (Servicio Nacional de Aduanas).
Article 48. Publication
1. Each administration shall publish, including on the Internet, its customs laws, regulations, and rules. (2)
2. Each administration shall designate or maintain one contact point to address inquiries by interested persons concerning customs matters and shall make available on the Internet information concerning the procedures for making such inquiries.
Article 49. Release of Goods
1. According to its domestic law, each Party shall establish or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties.
2. Each Party shall endeavour to adopt procedures to ensure, to the extent possible, the release of goods within a period no greater than 48 hours after submission of the customs declaration.
Article 50. Use of Automated Systems
1. The customs administrations shall apply information technology to support customs operations, particularly by facilitating the transmission of information prior to the arrival of the shipment, to allow the release of goods in the shortest time possible after their arrival.
2. The customs administrations shall endeavour to use information technology that expedites procedures for the release of goods and risk management and targeting.
Article 51. Cooperation
1. With a view to facilitating the effective operation of this Agreement, each Party shall endeavour to provide the other Party with advance notice of any significant modification of its administrative policy and other similar development related to its laws or regulations governing importations or exportations, and that is likely to substantially affect the operation of this Agreement.
2. The Parties, through their customs administrations, shall cooperate in achieving compliance with their respective domestic laws or regulations governing importations or exportations pertaining to:
(a) the implementation and operation of this Agreement, including its Chapter 4 (Rules of Origin and Related Operational Procedures);
(b) the implementation and operation of the Customs Valuation Agreement;
(c) restrictions or prohibitions on imports or exports; and
(d) other customs matters as the Parties may agree.
3. According to its domestic law, each Party, through its customs administration, shall endeavour to provide the other Party with any information that may assist that Party in determining if importations or exportations are in compliance with its laws or regulations governing importations, in particular those related to the prevention of fiscal fraud in any of its modalities.
4. For purposes to facilitate the flow of trade between the Parties, the Parties shall endeavour to provide the other Party with technical advice and assistance for the purpose of improving risk assessment techniques, simplifying and expediting customs procedures, advancing the technical skills of personnel, and enhancing the use of technologies that can lead to improved compliance with the laws or regulations governing importations.
5. The customs administrations of the Parties shall negotiate a Mutual Administrative Assistance Agreement that will cover relevant customs issues, no later than 3 months counted from the date of entry into force of this Free Trade Agreement. The Mutual Administrative Assistance Agreement shall be in compliance with the domestic law of each Party.
Article 52. Risk Management
Each Party shall endeavour to adopt or maintain risk management systems that enable its customs administration to focus its inspection activities on high-risk goods and that simplify the clearance and movement of low-risk goods.
Article 53. Express Shipments
Each customs administration shall adopt or maintain separate and expedited customs procedures for express shipments while maintaining appropriate risk management systems. These procedures shall, under normal circumstances, provide an express or expedited clearance of goods after submission of all the necessary requirements and customs documents.
Article 54. Review and Appeal
Each Party shall ensure, with respect to its determinations on customs matters, that importers in its territory have access to:
(a) a level of administrative review independent of the employee or office that issued the determination; and (b) judicial review of the administrative decision.
Article 55. Penalties
Each Party shall adopt or maintain measures that allow for the imposition of administrative penalties and, where appropriate, criminal sanctions for violations of its customs laws and regulations, including those governing tariff classification, customs valuation, country of origin, and claims for preferential treatment under this Agreement.
Article 56. Advance Rulings
1. The customs administration of each Party shall issue written advance rulings prior to the importation of a good into its territory upon written request of an importer in its territory, or exporter in the territory of the other Party, (3) on the basis of the facts and circumstances provided by the requester, including a detailed description of the information required to process a request for an advance ruling. The advance ruling may be issued on the following matters:
(a) tariff classification; or
(b) origin of a good in accordance with this Agreement.
2. The customs administration shall issue an advance ruling within 90 days after a request, provided that the requester has submitted all information that the competent authority requires. These advance rulings shall be in force from their date of notification, provided that the facts or circumstances on which the ruling is based remain unchanged.
3. The advance rulings that are into force may be annulled, amended or revoked, by the authorities that issued them, by administrative initiative, when one of the following situations is presented:
(a) where the facts or circumstances prove that the information on which the advance ruling is based is false or inaccurate. In these cases, the customs administration may apply appropriate measures to the requester, including civil, criminal and administrative actions, penalties or other sanctions in accordance with its domestic laws;
(b) where the customs administration deems appropriate to apply different criteria on the same facts and circumstances subject to the initial advance rulings. In this case, the amendment or revocation shall be applied from the date of the change and in no case shall oppose to situations occurred being into force the resolution; or
(c) when the administrative decisions are affected due to changes in the laws, regulations and rules that served as basis. In this case, the advance rulings shall automatically cease to be in force from the date of publication of the changes. In the cases mentioned in subparagraphs (b) and (c) the customs administration shall make available to interested persons the information reviewed, with sufficient time prior to the date on which the amendments enter into force, so they can take them into account, with the exception of the cases where it is impossible to publish in advance.
Chapter 6. Sanitary and Phytosanitary Measures
Article 57. Objectives
The objectives of this Chapter are to:
(a) facilitate trade between the Parties, while protecting human, animal or plant life or health in the territory of the Parties;
(b) uphold and enhance the implementation of the SPS Agreement and applicable international standards, guidelines and recommendations developed by relevant international organizations; and
(c) provide means to improve communication and consultation to resolve sanitary and phytosanitary issues in an efficient manner.
Article 58. Scope
This Chapter applies to all SPS measures of a Party that may, directly or indirectly, affect trade between the Parties.
Article 59. Definitions
For purposes of this Chapter:
(a) the definitions in Annex A of the SPS Agreement and the definitions provided in the glossary of harmonized terms of the relevant international organizations shall apply to this Chapter; and
(b) relevant international organizations refers to the organizations mentioned in the SPS Agreement, namely the International Plant Protection Convention (IPPC), the Codex Alimentarius (Codex) and the World Organization for Animal Health (OIE).
Article 60. Reaffirmation of Rights and Obligations
1. The Parties reaffirm their rights and obligations under the SPS Agreement. The Parties agree to follow the principles of scientific justification, harmonization, equivalence and regionalization of the SPS Agreement when developing relevant SPS measures. Nothing in this Chapter shall prevent a Party from adopting or maintaining SPS measures in accordance with its rights and obligations under the SPS Agreement. 2. The Parties recognize and apply the decisions on the application of the SPS Agreement adopted by the WTO Committee on Sanitary and Phytosanitary Measures (hereinafter "WTO/SPS Committee").
Article 61. Regionalization
The Parties recognize the principle of regionalization, as provided in Article 6 of the SPS Agreement, as a tool to properly and actively resolve issues of concern to each other, taking into account the appropriate criteria or guidelines developed by the relevant international organizations and decisions adopted by the WTO/SPS Committee.
Article 62. Equivalence
1. The Parties recognize that the principle of equivalence as set out in Article 4 of the SPS Agreement, as applied to SPS measures, produces mutual benefits for both Parties. The importing Party shall give positive consideration to accepting the SPS measures of the exporting Party as equivalent, if the exporting Party objectively demonstrates to the importing Party that its measures achieve the importing Party's appropriate level of sanitary or phytosanitary protection.
2. For the recognition of equivalence, the Parties should take into account international standards, guidelines and recommendations developed by the relevant international organizations and decisions adopted by the WTO/SPS Committee, where relevant to the particular case.
Article 63. Risk Analysis
1. The Parties recognize that risk analysis is an important tool for ensuring that SPS measures have scientific basis. The Parties shall ensure that their SPS measures are based on an assessment, as appropriate to the circumstances, of the risks to human, animal or plant life or health as provided in Article 5 of the SPS Agreement, and take into account the risk assessment techniques developed by the relevant international organizations.
2. The importing Party shall give priority consideration to market access requests of the exporting Party by undertaking as soon as possible the risk analysis in a manner consistent with the domestic legislation of the importing Party. For this purpose, the competent authorities of the Parties will maintain close communications and good working relationships at each stage of the risk analysis process in order to facilitate it and to avoid undue delay. The exporting Party shall provide the necessary information required by the importing Party for the risk assessment.
3. At the end of the risk analysis process, evidence supporting the risk analysis, remaining uncertainties and risk management proposals shall be communicated to the exporting Party.
4. If an exporting Party submits multiple market access requests to the importing Party, the exporting Party should identify its priority among these requests and this will be taken into account by the importing Party.
5. If a protocol of sanitary and/or phytosanitary requirements is needed based on risk analysis, the competent authorities of the Parties shall enter into negotiations as soon as possible, with the aim of adopting the protocol. The establishment, review and amendment of the protocol by the competent authorities will be in accordance with the provisions of this Chapter and the SPS Agreement. In this sense, the protocol shall be scientifically justified, and shall not constitute a disguised restriction on trade.
Article 64. Control, Inspection and Approval Procedures
Control, inspection and approval procedures shall be carried out in accordance with the provisions of Article 8 and Annex C of the SPS Agreement.
Article 65. Transparency
1. The Parties shall notify each other electronically through their respective WTO/SPS Enquiry Points of their proposed SPS measures that may affect trade between the Parties, in accordance with relevant provisions of the SPS Agreement. Each Party shall allow at least 60 days for the other Party to present comments on any notifications except where urgent problems of health protection arise or threaten to arise. This comment period is encouraged to be extended when the WTO/SPS Committee recommends a longer period. Each Party shall provide the full text of its notified SPS measures to the other Party within 5 working days after receiving the written request.
2. The Parties shall ensure that all adopted SPS measures are published and available to the other Party upon request and at no cost.
3. The Parties agree to strengthen information exchange cooperation between their WTO/SPS Enquiry Points and contact points established in Annex 5 (Contact Points for Sanitary and Phytosanitary Matters), including sharing, when available, translated English versions of the full texts of the adopted SPS measures as well as relevant information.
4. The exporting Party shall take effective measures to prevent and avoid sanitary and phytosanitary risks in bilateral trade, including notification in a timely manner to the importing Party of possible risks associated with its exports. Both Parties should encourage their competent authorities to enhance cooperation in this field and sign cooperative agreements if needed.
5. The importing Party shall notify the exporting Party in a timely manner of any problems that might occur with products imported from the exporting Party, the measure to be taken and its justifications, through the contact points established in Annex 5 (Contact Points for Sanitary and Phytosanitary Matters).
Article 66. Technical Cooperation
1. The Parties agree to strengthen bilateral technical cooperation on sanitary and phytosanitary issues, with a view to enhancing the mutual understanding of the regulatory systems of the Parties and facilitating access to each other's markets, with respect to, inter alia, laboratory testing techniques, disease/pest control methods and risk analysis methodology. The Parties agree to explore cooperation programs on technical assistance and capacity building, including but not limited to training programs and exchange visits.
2. Both Parties agree to encourage their WTO/SPS Enquiry Points to work in the following areas:
(a) providing assistance in English translation;
(b) providing information for specific products; and
(c) providing information on relevant regulations and documents.
Article 67. Committee on Sanitary and Phytosanitary Matters
1. The Parties hereby establish a Committee on Sanitary and Phytosanitary Matters (hereinafter "SPS Committee"), comprising representatives of each Party who have responsibility for sanitary and phytosanitary matters.
2. The SPS Committee shall convene its first meeting not later than 1 year after the date of entry into force of this Agreement and meet once every 2 years or at any time agreed by the Parties, in presence or through teleconference, videoconference, or any other means agreed by the Parties.
3. At its first meeting, the SPS Committee shall establish rules of procedure to guide its operation.
4. The SPS Committee shall have the following functions:
(a) to facilitate and monitor the implementation of this Chapter;
(b) to promote and facilitate communication, information exchange between the competent authorities with a view to enhancing mutual understanding of each Party's SPS measures and the regulatory processes that relate to those measures;
(c) to provide a forum for discussions on sanitary and phytosanitary issues that affect, or may affect, trade between the Parties;
(d) to coordinate technical cooperation programs on sanitary and phytosanitary matters;
(e) to enhance communication and cooperation in international organizations related to sanitary and phytosanitary matters;
(f) to establish ad hoc working groups in accordance with its terms of reference, when necessary;
(g) to review this Chapter in light of developments under the SPS Agreement; and
(h) other functions mutually agreed by the Parties.
5. The SPS Committee shall be coordinated by:
(a) in the case of China, the Department of International Cooperation, General Administration of Quality Supervision, Inspection and Quarantine, or its successor; and
(b) in the case of Costa Rica, the Directorate for the Application of International Trade Agreements of the Ministry of Foreign Trade (Dirección de Aplicación de Acuerdos Comerciales Internacionales del Ministerio de Comercio Exterior), or its successor.
6. In order to facilitate daily communication, the Parties designate contact points in the competent authorities. For detailed information, see Annex 5 (Contact Points for Sanitary and Phytosanitary Matters).