Title

CANADA - INDONESIA COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT

Preamble

PREAMBLE

CANADA AND THE REPUBLIC OF INDONESIA, collectively referred to as “the Parties”, resolving to:

STRENGTHEN the bonds of friendship and cooperation between them and their peoples;

BUILD on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994, and other multilateral and bilateral instruments of cooperation;

FACILITATE trade in goods and services between the Parties by enhancing transparency, and promoting good regulatory practices;

RECOGNISE that the provisions of this Agreement preserve the right of the Parties to regulate within their territories to achieve legitimate public policy objectives;

PROTECT human, animal, orplant life orhealth in the territories of the Parties and advance science-based decision making while facilitating trade between them;

PROMOTE transparency, good governance and the rule of law, and prevent and combat bribery and corruption in trade and investment;

ENHANCE conditions of fair competition in the territory of the Parties;

ENCOURAGE enterprises operating within their territory or subject to their jurisdiction to respect internationally recognised responsible business conduct principles and standards;

PROMOTE, PROTECT and ENFORCE labour rights, the improvement of working conditions, and the strengthening of cooperation on labour issues;

PROMOTE high levels of environmental protection, including through effective enforcement of environmental laws and environmental cooperation;

ADVANCE the objective of sustainable development in its economic, social and environmental dimensions through enhanced bilateral relations;

SUPPORT the growth and development of small and medium-sized enterprises by enhancing their ability to fully participate in and benefit from the opportunities created by this Agreement;

RECOGNISE that small and medium-sized enterprises, including micro enterprises and entrepreneurs contribute significantly to economic prosperity, employment, community development, youth engagement and innovation, as well as making progress in achieving the UN Sustainable Development Goals;

REAFFIRM their commitments as parties to the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions, done at Paris on 20 October 2005, and recognise that states must maintain the ability to preserve, develop, and implement their cultural policies;

ESTABLISH a predictable legal and commercial framework that supports increased trade and investment through their Comprehensive Economic Partnership;

HAVE AGREED as follows:

Body

Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS

Section A. Initial Provisions

Article 1.1. Establishment of a Free Trade Area

The Parties, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish the Canada-Indonesia Comprehensive Economic Partnership as a free trade area.

Article 1.2. Relation to other Agreements

1. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which the Parties are party.

2. If a Party considers that a provision of this Agreement is inconsistent with a provision of another agreement referred to in paragraph 1, the Parties shall, on request, consult with each other to reach a mutually satisfactory outcome. This paragraph is without prejudice to a Party’s rights and obligations under Chapter 24 (Dispute Settlement).

Article 1.3. Extent of Obligations

Except as otherwise provided in this Agreement, each Party is fully responsible for the observance of all provisions of this Agreement and shall take reasonable measures as may be available to it to ensure observance of the provisions of this Agreement by governments other than at the central level and authorities within its territory.

Article 1.4. Delegated Authority

Each Party shall ensure that any person that has been delegated regulatory, administrative, or other governmental authority by a Party act in accordance with the Party’s obligations as set out under this Agreement in the exercise of that authority.

Section B. General Definitions

Article 1.5. General Definitions

For the purposes of this Agreement, unless otherwise specified:

AD Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;

central government means:

(a) for Canada, the Government of Canada;

(b) for Indonesia, the Government of the Republic of Indonesia;

covered investment means, with respect to a Party, an investment:

(a) in its territory;

(b) made in accordance with the applicable domestic law of the Party at the time the investment is made; (1)

(c) directly or indirectly owned or controlled by an investor of the other Party; and

(d) existing on the date of entry into force of this Agreement, or made or acquired thereafter;

customs administration means the governmental authority that is responsible under the law of a Party for the administration of customs laws and regulations or any successor of such customs administration;

Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex 1A of the WTO Agreement;

days means calendar days, including weekends and holidays;

enterprise means any entity constituted or organised under applicable law, whether or not for profit, and whether privately or governmentally owned or controlled, including any corporation, trust, partnership, sole proprietorship, joint venture, association, or similar organisation;

existing means in effect on the date of entry into force of this Agreement;

GATS means the General Agreement on Trade in Services Annex 1B of the WTO Agreement;

GATT 1994 means the General Agreement on Tariffs and Trade 1994 in Annex 1A of the WTO Agreement;

goods means any merchandise, product, article, or material;

Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, Chapter Notes, and Subheading Notes as set out in the Annex to the International Convention on the Harmonized Commodity Description and Coding System, done at Brussels on 14 June 1983, as may be amended, and as adopted and implemented by the Parties in their respective laws;

heading means the first four digits in the tariff classification number under the Harmonized System; measure means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form;

national means a natural person who is:

(a) for Canada, a Canadian citizen or permanent resident under Canadian law;

(b) for Indonesia, an Indonesian national as defined in Law No. 12/2006, as amended, or any successor legislation;

perishable goods means goods that rapidly decay due to their natural characteristics, in particular in the absence of appropriate storage conditions;

person means a natural person or an enterprise;

person of a Party means a national of a Party or an enterprise of a Party;

preferential tariff treatment means the customs duty rate applicable to an originating good under this Agreement; regional government means:

(a) for Canada, a province or territory of Canada;

(b) for Indonesia, a province of Indonesia, as defined under Indonesian law;

Safeguards Agreement means the Agreement on Safeguards in Annex 1A to the WTO Agreement;

sanitary or phytosanitary measure means a measure referred to in paragraph 1 of Annex A to the SPS Agreement;

SCM Agreement means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;

SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement;

state enterprise means an enterprise that is owned, or controlled through ownership interests, by a Party;

subheading means the first six digits in the tariff classification number under the Harmonized System;

territory means:

(a) with respect to Canada,

(i) the land territory, air space, internal waters, and territorial sea of Canada,

(ii) the exclusive economic zone of Canada, and

(iii) the continental shelf of Canada, as determined by its domestic law and consistent with international law;

(b) with respect to Indonesia, the land territories, internal waters, archipelagic waters, territorial sea, including the seabed and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which Indonesia has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with international law, including the United Nations Convention on the Law of the Sea, done at Montego Bay on 10 December 1982;

TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement;

WTO means the World Trade Organization; and

WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.

Chapter 2. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS

Article 2.1: Definitions For the purposes of this Chapter: Agreement on Agriculture means the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement; agricultural good means a product listed in Annex 1 to the Agreement on Agriculture; 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; customs duty means a duty or a charge of any kind imposed on or in connection with the importation of a good, including a form of surtax or surcharge imposed on or in connection with that importation, but does not include: (a) a charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994; (b) an anti-dumping or countervailing duty; (c) a fee or other charge imposed in connection with the importation commensurate with the cost of services rendered; and (d) a payment or a security offered or collected related to an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions or tariff rate quotas; duty-free means free of customs duty; export licensing procedure means a requirement that a Party adopts or maintains under which an exporter must, as a condition for exporting a good from the Party’s territory, submit an application or other documentation to an administrative body or bodies, but does not include customs documentation required in the normal course of trade or any requirement that must be fulfilled prior to introduction of the good into commerce within the Party’s territory; export subsidy means an export subsidy as defined in Article 1(e) of the Agreement on Agriculture; 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 a Party; 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; Import Licensing Agreement means the Agreement on Import Licensing Procedures, contained in Annex 1A to the WTO Agreement; low level presence (LLP) occurrence means the inadvertent low level presence in a shipment of plants or plant products, except for a plant or plant product that is a medicine or medical product, of rDNA plant material that is authorized for use in at least one country, but not in the importing country, and if authorized for food use, a food safety assessment has been done based on the Codex Guideline for the Conduct of a Food Safety Assessment of Foods Derived from Recombinant-DNA Plants (CAG/GL 45-2003). modern biotechnology means the application of: (a) in vitro nucleic acid techniques, including recombinant DNA and direct injection of nucleic acid into cells or organelles; or (b) fusion of cells beyond the taxonomic family, that overcome natural physiological reproductive or recombination barriers and that are not techniques used in traditional breeding and selection; product of modern biotechnology means an agricultural good, or a fish or fish product covered by Chapter 3 of the Harmonized System (HS) intended for food and feed, developed using modern biotechnology, but does not include a medicine or a medical product. Article 2.2: Scope Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties. Article 2.3: 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. For greatercertainty, the treatment to be accorded by a Party under paragraph 1 means, with respect to a regional level of government, treatment no less favourable than the most favourable treatment that the regional level of government accords to any like, directly competitive or substitutable goods, as the case may be, of the Party of which it forms a part. 3. This Article does not apply to a measure, including a measure’s continuation, prompt renewal or amendment, in respect of excise duties on absolute alcohol, as listed under tariff item 2207.10.90 in each Party’s Schedule of Concessions annexed to the GATT 1994 and the internal sale and distribution of wine and distilled spirits. Article 2.4: Elimination of Customs Duties on Imports 1. Except as otherwise provided in this Agreement, a Party shall not increase any existing customs duty, or adopt any new customs duty, on an originating good. 2. Except as otherwise provided in this Agreement, each Party shall eliminate its customs duties on originating goods in accordance with its Schedule to Annex 2-A (Tariff Commitments). 3. On the request of a Party, the Parties shall consult to consider accelerating or broadening the scope of the elimination of customs duties set out in their Schedules to Annex 2-A (Tariff Commitments). An agreement between the Parties to accelerate or broaden the scope of the elimination of a customs duty on an originating good shall supersede any customs duty rate or staging category determined pursuant to each Party’s Schedule to Annex 2-A(Tariff Commitments) for that good in accordance with and upon completion of each Party's applicable legal procedures. 4. A Party may at any time unilaterally accelerate or broaden the scope of the elimination of customs duties set out in its Schedule to Annex 2-A (Tariff Commitments) on originating goods of the other Party. A Party shall inform the other Party as early as practicable before the new rate of customs duties takes effect. 5. For greater certainty, a Party shall not prohibit an importer from claiming for an originating good the rate of customs duty applied under the WTO Agreement. 6. For greater certainty, a Party may: (a) modify its tariffs on goods for which no tariff preference is claimed under this Agreement; (b) increase a customs duty to the level established in its Schedule to Annex 2-A(Tariff Commitments) after a unilateral reduction; or (c) maintain or increase acustoms duty as authorized by this Agreement, the Dispute Settlement Body of the WTO, or an agreement under the WTO Agreement. Article 2.5: Classification of Goods and Transposition of Tariff Commitments 1. The classification of goods in trade between the Parties shall be in conformity with the Harmonized System (HS) and its amendments. 2. At the request of a Party, the Parties shall share information on those tariffitems if any revisions are necessary, to ensure that each Party’s obligations under this Agreement are not altered by its implementation of future amendments to the Harmonized System (HS) into its national nomenclature. 3. At the request of a Party, the Committee on Trade in Goods may review the future amendments to the Harmonized System (HS) to ensure that each Party’s obligations under this Agreement are not altered, including by establishing, as needed, guidelines for the transposition of Parties’ Schedules to Annex 2-A (Tariff Commitments) and consult to resolve any differences that may arise between the Parties on matters related to the Harmonized System (HS). Article 2.6: Agricultural Special Safeguards Originating agricultural goods traded under preferential tariff treatment shall not be subject to any duties that the importing Party applies pursuant to a special safeguard it takes pursuant to the Agreement on Agriculture.1 Article 2.7: Import and Export Restrictions 1. Except as otherwise provided in this Agreement, a Party shall not adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of the GATT 1994, including its interpretative notes, and to this end, Article XI of the GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis. 2. The Parties understand that GATT 1994 rights and obligations incorporated by paragraph 1 prohibit, in any circumstances in which any other form of restriction is prohibited, a Party from adopting or maintaining: (a) export or import pricerequirements, except as permitted in enforcement of countervailing and antidumping duty orders or undertakings; or (b) voluntary export restraints inconsistent with Article VI of theGATT 1994, as implemented under Article 18 of the SCM Agreement and Article 8.1 of the AD Agreement. 3. Except as otherwise provided in this Agreement, a Party shall not adopt or maintain any measure prohibited by Article 4.2 of the Agreement on Agriculture with respect to goods of the other Party. To this end, Article 4.2 of the Agreement on Agriculture is incorporated into and made part of this Agreement.2 4. Ifa Party adopts or maintains a prohibition or restriction on the importation from or exportation to a non-Party of a good, nothing in this Agreement shall be construed to prevent that Party from: (a) limiting or prohibiting the importation of the good of that non-Party from the territory of the other Party; or (b) requiring, as a condition for exporting the good of that Party to the territory of the other Party, that the good not be re-exported to the non-Party, directly or indirectly, without being consumed in the territory of the other Party. 5. For the purposes of this Article, consumed means: (a) actually consumed; or 1 For greater certainty,an agricultural good forwhichmost-favored-nation tariff treatment applies may be subject to additional duties applied by aParty pursuantto aspecial safeguard taken under the Agreement on Agriculture. 2 For greater certainty,the Parties shared theunderstanding that Article 24.4.2 (Dispute Settlement –ChoiceofForum) includes any matter that has beensubject todispute settlement proceedingunder WTO DSU. (b) further processed or manufactured so as to result in a substantial change in the value, form or use of the good, or in the production of another good. 6. Ifa Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, on the request of a Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing or distribution arrangements in the other Party. 7. This Article does not apply to a measure, including that measure’s continuation, prompt renewal or amendment, in respect of the following: (a) excise duties on absolute alcohol, as listed under tariff item 2207.10.90 in a Partys’ Schedule of Concessions annexed to the GATT 1994; (b) the importation of goods of the prohibited provisions of tariff items 9897.00.00, 9898.00.00, and 9899.00.00 referred to in the Schedule of the Customs Tariff; (c) the use of ships in the coasting trade of each Party’s own territory; (d) the export of logs of all species; and (e) the export of unprocessed fish pursuant to applicable provincial legislation. Article 2.8: Agricultural Export Subsidies 1. The Parties affirm their rights and obligations under the Nairobi WTO Ministerial Decision of 19 December 2015 on Export Competition.3 2. The Parties share the objective of the multilateral elimination of export subsidies for agricultural goods and shall work together to prevent their reintroduction in any form. 3. A Party shall not adopt or maintain a measure on an agricultural good that is not consistent with the Nairobi WTO Ministerial Decision of 19 December 2015 on Export Competition. Article 2.9: Transparency in Import Licensing Procedures 1. Each Party shall ensure that its import licensing procedures are implemented in a transparent and predictable manner, and applied in accordance with the Import Licensing Agreement. 2. Promptly after this Agreement enters into force, each Party shall notify the other Party of its existing import licensing procedures, if any. The notification shall include the information specified in Article 5.2 of the Import Licensing Agreement and any information required under paragraph 6. 3 WTO DocumentWT/MIN(15)/45. 3. A Party shall be deemed to be in compliance with the obligations in paragraph 2 with respect to an existing import licensing procedure if: (a) it has notified that procedure to the WTO Committee on Import Licensing provided for in Article 4 of the Import Licensing Agreement together with the information specified in Article 5.2 of that agreement; (b) it has provided with respect to that procedure the information requested in the annual questionnaire on import licensing procedures under Article 7.3 of the Import Licensing Agreement in its most recent annual submission to the WTO Committee on Import Licensing due before the date of entry into force of this Agreement for that Party; and (c) it has included in either the notification described in subparagraph (a) or the annual submission described in subparagraph (b) any information required to be notified to the other Party under paragraph 6. 4. Each Party shall comply with Article 1.4(a) of the Import Licensing Agreement with respect to any new or modified import licensing procedure. Each Party shall also publish on an official government website any information that it is required to publish under Article 1.4(a) of the Import Licensing Agreement. 5. Each Party shall notify the other Party of any new import licensing procedures it adopts and any modifications it makes to its existing import licensing procedures, if possible, no later than 60 days before the new procedure or modification takes effect. A Party shall not provide the notification later than 60 days after the date of its publication. The notification shall include any information required under paragraph 6. A Party shall be deemed to be in compliance with this obligation, if it notifies a new import licensing procedure or a modification to an existing import licensing procedure to the WTO Committee on Import Licensing in accordance with Article 5.1, 5.2, or 5.3 of the Import Licensing Agreement, and includes in its notification any information required to be notified to the other Party under paragraph 6. 6. (a) A notice under paragraph 2, 3,or 5 shall state if, under any import licensing procedure that is a subject of the notice: (i) the terms of an import licence for any product limit the permissible end users of the product; or (ii) the Party imposes any of the following conditions on eligibility for obtaining a licence to import any product: (A) membership in an industry association; (B) approval by an industry association of the request for an import licence; (C) a history of importing the product or similar products; (D) minimum importer or end user production capacity; (E) minimum importer or end user registered capital; or (F) a contractual or otherrelationship between the importer and a distributor in the Party’s territory. (b) A notice under subparagraph (a), that states that there is a limitation on permissible end users or a licence-eligibility condition shall: (i) list all products for which the end-user limitation or licence-eligibility condition applies; and (ii) describe the end-user limitation or licence-eligibility condition. 7. Each Party shall respond within 60 days to a reasonable enquiry from the other Party concerning its licensing rules and its procedures for the submission of an application for an import licence, including the eligibility of persons, firms, and institutions to make an application, the administrative body or bodies to be approached and the list of products subject to the licensing requirement. 8. If a Party denies an import licenceapplication with respect to a good of theother Party, it shall, on request of the applicant and within a reasonable period after receiving the request, provide the applicant with a written explanation of the reason for the denial. 9. AParty shall not apply an import licensing procedure to a good of the other Party unless it has, with respect to that procedure, met the requirements of paragraph 2 or 4, as applicable. Article 2.10: Transparency in Export Licensing Procedures 1. Within 30 days after the date of entry into force of this Agreement, each Party shall notify the other Party in writing of the publications in which its export licensing procedures, if any, are set out, including addresses of relevant government websites on which the procedures are published. Thereafter, each Party shall publish any new export licensing procedure, or any modification of an export licensing procedure it adopts, as soon as practicable but no later than 60 days after the new procedure or modification takes effect. 2. Each Party shall ensure that, the publications it notifies under paragraph 1 include: (a) the texts of its export licensing procedures, including any modifications it makes to those procedures; (b) the goods subject to each licensing procedure; (c) for each procedure, a description of: (i) the process for applying for a licence; and (ii) any criteria an applicant must meet to be eligible to seek a licence; (d) a contact point or points from which interested persons can obtain further information on the conditions for obtaining an export licence; (e) the administrative body or bodies to which an application or other relevant documentation should be submitted; (f) a description of or a citation to a publication reproducing in full any measure or measures that the export licensing procedure implements; (g) the period during which each export licensing procedurewill be in effect, unless the procedure will remain in effect until withdrawn or revised in a new publication; (h) if the Party intends to use a licensing procedure to administer an export quota, the overall quantity and, if practicable, the value of the quota, and the opening and closing dates of the quota; and (i) any exemptions or exceptions available to the public that replace the requirement to obtain an export licence, how to request or use these exemptions or exceptions, and if applicable the criteria for them. 3. In accordance with its relevant laws and regulations, a Party shall provide the other Party, on the other Party’s request and to the extent practicable, the following information regarding a particular export licensing procedure that it adopts or maintains, except if doing so would reveal business proprietary or other confidential information of a particular person: (a) the aggregate number of licences the Party has granted over arecent period specified in the other Party’s request; and (b) measures, if any, that the Party has taken in conjunction with the licensing procedure to restrict domestic production or consumption or to stabilize production, supply, or prices for the relevant good. 4. This Articledoes not require a Party to grant an export licence. Article 2.11: Customs User Fees 1. A Party shall not adopt or maintain a customs user fee or require consular transactions in connection with the importation or exportation of a good from the territory of the other Party. 2. Paragraph 1 does not prevent a Party from imposing a customs duty or a charge set out in paragraphs (a), (b), or (d) of the definition of “customs duty”. Article 2.12: Exchange of Preference Utilization Data 1. For the purpose of monitoring the functioning of thisAgreement and calculating preference utilization rates, the Parties shall annually exchange updated import statistics for a period starting one year after the date of entry into force of this Agreement until five years after the tariff elimination is completed. This period may be extended by decision of the Parties through the Committee on Trade in Goods. 2. The import statistics referred to in paragraph 1 shall include data pertaining to the most recent calendar year available, at the tariff line level for Chapters 1 through 97 of the HS, on imports of goods from the other Party that are subject to MFN-applied tariffs and tariff preferences under this Agreement, including information on value, and if applicable, volume and tariff-rate quotas’ fill rate. Article 2.13: Trade in Products of Modern Biotechnology 1. The Parties recognise the importance of agricultural innovation and facilitating trade in products of modern biotechnology including transparency, cooperation, and the voluntary exchange of information related to the trade in products of modern biotechnology including policies, legislation, guidelines and good practices. 2. Nothing in this Article shall be construed to require a Party to authorize a product of modern biotechnology to be on the market. 3. Each Party shall, when available and subject to its laws, regulation or policy, make available to the public and, to the extent possible, online: (a) information and documentation requirements for an authorization, if required, of a product of modern biotechnology; (b) summary of risk or safety assessment,if any, that has led to the authorization, if required, of a product of modern biotechnology; and (c) list of the products of modern biotechnology that have been authorized in its territory. 4. To reduce the likelihood of disruptions to trade in products of modern biotechnology: (a) each Party shall continue to encourage applicants to submit timely and concurrent applications to the other Party for authorization, if required, of products of modern biotechnology; and (b) a Party requiring any authorization for a product of modern biotechnology shall: (i) accept and review applications for the authorization, if required, of products of modern biotechnology on an ongoing basis year-round; (ii) if an authorization is subject to expiration, take steps to help ensure that the review of the product is completed and decision is made in a timely manner, and if possible, prior to expiration; and (iii) communicate with the other Party regarding any new and existing authorizations of products of modern biotechnology, so as to improve information exchange. 5. Each Party shall endeavor to adopt or maintain policies and approaches designed to facilitate the management of an LLP occurrence. 6. The Parties shall pursuecollaborative and trade-facilitative approaches to the management of an LLP occurrence. 7. In order to address an LLP occurrence, and with a view to preventing a future LLP occurrence, on request of an importing Party, an exporting Party shall, when available and subject to its laws, regulations and policies: (a) provide summary of the risk or safety assessment or assessments, if any, that the exporting Party conducted in connection with an authorization of a specific plant product of modern biotechnology; (b) provide, if known to the exporting Party, contact information for any entity within its territory that received authorization for the plant product of modern biotechnology and which the Party believes that it is likely to possess: (i) validated methods that exist for the detection of the plant product of modern biotechnology found at a low level in a shipment; (ii) reference samples necessary for the detection of the LLP occurrence; and (iii) relevant information4that can be used by the importing Party to conduct a risk or safety assessment if appropriate, in accordance with the relevant international standards and guidelines; and (c) encourage an entity referred to in subparagraph (b) to share the information referred to in sub-subparagraphs (b)(i), (b)(ii) and (b)(iii) with the importing Party. 8. In the event of an LLP occurrence, the importing Party shall, subject to its laws, regulation or policy: (a) inform the importer or the importer’s agent of the LLP occurrenceand of any additional information that the importer will be required to submit, to allow the importing Party to make a decision on the disposition of the shipment in which the LLP occurrence has been found; (b) on request, and if available, provide to the exporting Party summary of risk or safety assessment that the importing Party has conducted in connection with the LLP occurrence; (c) ensure that the measuresapplied to address thatLLP occurrenceare appropriate to achieve compliance with its laws, regulation or policy; and (d) take into account, as appropriate, any relevant risk or safety assessment provided, and authorization granted, by the other Party or non-Party when deciding how to manage the LLP occurrence. 4 For example, relevant information includes the information contained in Annex 3 ofthe Codex Guideline for the Conduct of Food Safety Assessment of Foods Derived from Recombinant-DNA Plants (CAC/GL 45-2003). Article 2.14: Cooperation 1. The Parties recognise that cooperation under this Chapter may advance the inclusive, effective and efficient implementation and utilization of this Chapter through various activities between the Parties. 2. The Parties shall explore opportunities for cooperation relating to: (a) products covered under Article 2.15, including policies related to LLP occurrences; (b) innovative plants and plant varieties and the products derived therefrom;5 and (c) other matters, as agreed between the Parties. 3. For the purpose of subparagraphs 2(a) and 2(b), that cooperation may include: (a) information sharing on domestic regulations, policies, and technical matters; (b) collaborative dialogue on trade, emerging technologies, and regulatory streamlining; and (c) efforts to advance transparent, science and risk-based regulatory approaches and trade policies with regional partners, non-Parties, and in international organizations. 4. The cooperation shall take into account, among other things, the different levels of development, existing bilateral cooperation and collaboration, availability of appropriate resources, and the national capacity of each Party. Article 2.15: Committee on Trade in Goods 1. The Parties hereby establish a Committee on Trade in Goods (“Committee”), comprising representatives of each Party. 2. The Committee shall meet atthe request of a Party or the Joint Committee, established under Article 23.1 (Administrative and Institutional Provisions – Establishment of the Joint Committee), to consider any matter arising under this Chapter. 5 Innovative plants andplant varieties means plants andplant varietiesproducedby means other than conventional plant breeding methods. 3. The Committee shall meet at a venue and time as the Parties decide or by electronic means. Hosting responsibilities shall alternate between the Parties. 4. The Committee’s functions shall include: (a) monitoring the implementation and administration of this Chapter; (b) consulting on ways to improve market access between the Parties further to a request under Article 2.4.3; (c) consulting on, and endeavour to resolving, any other issues relating to this Chapter, including, as appropriate, in coordination or jointly with other committees, subcommittees, working groups, or other bodies established under this Agreement; (d) promptly seeking to address barriers to trade in goods between the Parties, including on agricultural goods other than those within the competence of other committees, subcommittees, working groups or any other bodies established under this Agreement and, if appropriate, referring the matter to the Joint Committee for its consideration; (e) coordinating the exchange of information on trade in goods between the Parties; (f) referring any relevant issues to other committees, subcommittees, working groups or any other bodies established under this Agreement and notifying the Joint Committee, as appropriate; and (g) undertaking additional work that the Joint Committee may assign or another committee may refer to it. 5. Notwithstanding paragraph 2, for matters involving issues or trade barriers affecting perishable goods, the Committee shall meet within 30 days of a request by a Party or the Joint Committee and shall be composed of relevant representatives of each Party. CHAPTER 3 RULES OF ORIGIN AND ORIGIN PROCEDURES Section A: Definitions Article 3.1: Definitions For the purposes of this Chapter: aquaculture means the farming of aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seed stock such as eggs, fingerlings, fry, larvae, post-larvae or seedlings by the intervention in the rearing, or growing processes, to enhance production, such as regular stocking, feeding or protection from predators; competent authority means: (a) for Canada, the Canada Border Services Agency, or its successor; and (b) for Indonesia, the Directorate of Export and Import Facilitation, Directorate General of Foreign Trade, Ministry of Trade, or its successor; declaration of origin means a document containing a set of minimum data elements in accordance with Annex 3-A: Minimum Data Elements of the Declaration of Origin; determination of origin means a determination as to whether a good qualifies as an originating good in accordance with this Chapter; fungible goods ormaterials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical; generally accepted accounting principles means the principles recognized by consensus or with 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. These principles may encompass broad guidelines for general application as well as detailed standards, practices, and procedures; indirect material means a material used in the production, testing, or inspection of another good but not physically incorporated into that good, or a material used in the maintenance of buildings or the operation of equipment associated with the production of a good, including: (a) fuel, energy, catalysts, and solvents; (b) equipment, devices,and supplies used for testing or inspection of the goods; (c) gloves, glasses, footwear, clothing, safety equipment, and supplies; (d) tools, dies, and moulds; (e) spare parts and materials used in the maintenanceof equipment and buildings; (f) lubricants, greases, compounding materials, and other materials used in production, or used to operate equipment or in the maintenance of buildings, and (g) any other material that is not incorporated into thegood but the use of which in the production of the good can reasonably be demonstrated to be a part of that production; material means a good that is used in the production of another good, and includes a part or ingredient; non-originating good or non-originating material means a good or material that does not qualify as originating in accordance with this Chapter; originating good or originating material means a good or material that qualifies as originating in accordance with this Chapter; packaging materials and containers means materials and containers in which a good is packaged for retail sale; packing materials and containers for transportation and shipment means materials and containers that are used to protect a good during its transportation; production means methods for obtaining goods, including growing, raising, harvesting, cultivating, picking, fishing, hunting, capturing, aquaculture, gathering, extracting, manufacturing, processing, or assembling a good; value of the good means the price paid or payable to the producer of the good at the place where the last production was carried out, must include the value of all materials, and may include the cost of domestic transport from the place of production to the port of export as well as all costs incurred at the port of export. If there is no price paid or payable or if it does not include the value of all materials, the value of the good: (a) must include the value of all materials and the cost of production employed in producing the good, calculated in accordance with generally accepted accounting principles; and (b) may include amounts for general expenses and profit to the producer that can be reasonably allocated to the good. Any internal taxes which are, or may be, repaid when the good obtained is exported are excluded; and value of non-originating materials means the customs value of the material at the time of its importation into aParty as determined in accordance with the Customs Valuation Agreement. The value of non-originating material must include any costs incurred in transporting the material to the place of importation, such as transportation, loading, unloading, handling, or insurance. If the customs value is not known or cannot be ascertained, the value of non-originating materials is the first ascertainable price paid for the materials in a Party. Section B: Rules of Origin Article 3.2: Originating Goods Except as otherwise provided in this Chapter, each Party shall provide that a good is originating if it is: (a) wholly obtained or produced in the territory of a Party as provided in Article 3.3 (Wholly Obtained or Produced Goods); (b) produced inthe territory of a Party exclusively from originating materials of one or both of the Parties; or (c) produced in the territory of a Party using non-originating materials provided that the good satisfies the requirements set out in Annex 3-B (Product-Specific Rules of Origin); and the good satisfies all other applicable requirements of this Chapter. Article 3.3: Wholly Obtained or Produced Goods Each Party shall provide that for the purposes of Article 3.2 (Originating Goods), the following goods are considered wholly obtained or produced in the territory of a Party: (a) a plant, plant good,or a fungi good grown, cultivated, harvested, picked, or gathered there; (b) a live animal born and raised there; (c) a good obtained from a live animal there; (d) a good obtained by hunting, trapping, fishing,aquaculture,gathering, or capturing there; (e) a mineral orother naturally occurring substance not included in subparagraphs (a) through (d), extracted or taken from there; (f) a good, other than afish, crustacean, mollusc,and other marine life,taken by a Party or a person of a Party from the waters, seabed, ocean floor, or subsoil outside the territories of the Parties, including from the exclusive economic zones of any Party or non-Party, provided that that Party or the person of that Party has the right to exploit that seabed, ocean floor, or subsoil in accordance with international law, including the United Nations Convention on the Law of the Sea; (g) a good of sea-fishingorother marine life,taken from the waters outside the territories of the Parties by vessels that are registered, listed, or recorded and entitled to fly the flag of that Party and that that Party has the right to exploit those waters in accordance with international law; (h) a good produced on board a factory ship, exclusively from a good referred to in subparagraph (g), provided that the factory ship is registered, listed, or recorded in a Party and entitled to fly the flag of that Party; (i) a good that is: (i) waste orscrap derived from production or consumption there, provided that such goods are fit only for the recovery of raw materials, or for recycling purposes; or (ii) a used good collected there, provided that it is fit only for the recovery of raw materials, or for recycling purposes; or (j) a good obtained or produced exclusively from goods referred to in subparagraphs (a) through (i), or from their derivatives. Article 3.4: Accumulation 1. Each Party shall provide that agood is originating if the good is produced in the territory of one or both of the Parties by one or more producers, provided that the good satisfies the requirements of Article 3.2 (Originating Goods). 2. Each Party shall provide that an originating good or material of a Party is considered as originating in the territory of the other Party when it is used as a material in the production of a good in the territory of the other Party. 3. Each Party shall provide that an exporter may take into account production carried out on a non-originating material in the territory of the other Party for the purposes of determining the originating status of a good. This paragraph shall only apply if: (a) Indonesia enters into a free trade agreement which contains a provision with equivalent effect to paragraph 3, upon entry into force of that free trade agreement and in accordance with and upon completion of each Party’s applicable legal procedures; or (b) the Parties decide to apply paragraph 3 following the review provided for in Article 26.4 (Final Provisions – Review). 4. Subject to paragraph 5, if, as permitted by the WTO Agreement, each Party has a free trade agreement with the same non-Party, a material from that non-Party may be taken into consideration by the exporter when determining if a good is originating under this Agreement. 5. Each Party shall apply paragraph 4only if equivalent provisions are in force between each Party and the non-Party and upon agreement by the Parties on the applicable conditions. Article 3.5: Materials Used in Production Each Party shall provide that if a non-originating material undergoes further production that satisfies the requirements of this Chapter, the material is treated as originating when determining the originating status of the subsequently produced good, regardless of whether that material was produced by the producer of the good. Article 3.6: Net Cost 1. For the purposes of this Article: automotive material means a good of heading 87.06, 87.07 or 87.08; motor vehicle means a good of heading 87.03 through 87.05 or 87.09; net cost means total cost minus sales promotion, marketing and after-sales service costs, royalty, shipping and packing costs, and non-allowable interest cost that are included in the total cost; non-allowable interest cost means interest costs incurred by a producer that exceed 700 basis points above the applicable national government interest rate identified for comparable maturities; royalty means payments of any kind, including payments under technical assistance or similar agreements, made as consideration for the use or right to use any copyright, literary, artistic, or scientific work, patent, trademark, design, model, plan, secret formula, or process, excluding those payments under technical assistance or similar agreements that can be related to specific services such as: (a) personnel training, without regard to where it is performed; and (b) if performed in the territory of one or both of the Parties, engineering, tooling, die-setting, software design, and similar computer services, or other services; sales promotion, marketing, and after-sales service costs means the following costs related to sales promotion, marketing, and after-sales service: (a) sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing and after-sales service literature (brochures for the good, catalogues, technical literature, price lists, service manuals and sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; or entertainment; (b) sales and marketing incentives; consumer, retailer or wholesaler rebates; or merchandise incentives; (c) salaries and wages; sales commissions; bonuses; benefits (for example, medical, insurance, and pension); travelling and living expenses; or membership and professional fees for sales promotion, marketing, and after-sales service personnel; (d) recruiting and training of sales promotion, marketing, and after-sales service personnel, and after-sales training of customers’ employees, if those costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (e) goods liability insurance; (f) office supplies for sales promotion, marketing, and after-sales service of goods, if those costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (g) telephone, mail, and other communications, if those costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; (h) rent and depreciation of sales promotion, marketing, and after-sales service offices and distribution centres; (i) property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing, and after-sales service offices and distribution centres, ifsuch costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial statements or cost accounts of the producer; and (j) payments by the producer to other persons for warranty repairs; shipping and packing costs means the costs incurred in packing a good for shipment and shipping the good from the point of direct shipment to the buyer, excluding costs of preparing and packaging the good for retail sale; and total cost means all product costs, period costs, and other costs incurred in relation to the production of a good in Canada when: (a) product costs means those costs that are associated with the production of a good and include the value of materials, direct labour costs, and direct overhead; (b) period costs means those costs other than product costs that are expensed in the period in which they are incurred, including selling expenses and general and administrative expenses; and (c) other costs means all costs recorded on the books of the producer that are not product costs or period costs. Total cost does not include profits that are earned by the producer, regardless of whether they are retained by the producer or paid out to other persons as dividends, or taxes paid on those profits, including capital gains taxes. 2. Each Party shall provide that, for the purpose of calculating the net cost of a good as set out in Annex 3-B (Product-Specific Rules of Origin), the producer of the good may: (a) calculate the total cost incurred with respect to all goods produced by that producer, subtract any sales promotion, marketing and after-sales service costs, royalty, shipping and packing costs, and non-allowable interest cost that is included in the total cost of all those goods, and then reasonably allocate the resulting net cost of those goods to the good; (b) calculate the total cost incurred with respect to all goods produced by that producer, reasonably allocate the total cost to the good, and then subtract any sales promotion, marketing and after-sales service costs, royalty, shipping and packing costs and non-allowable interest cost that is included in the portion of the total cost allocated to the good; or (c) reasonably allocate each cost that forms part of the total cost incurred by that producer with respect to the good so that the aggregate of these costs does not include any sales promotion, marketing and after-sales service costs, royalty, shipping and packing costs, or non-allowable interest cost. 3. Each Party shall provide that, for the purpose of calculating the net cost of a good as set out in Annex 3-B (Product-Specific Rules of Origin), the producer may average its calculation over its fiscal year using any one of the following categories, on the basis of either all motor vehicles produced by that producer in the category or only those motor vehicles in the category that are produced by that producer and exported to the territory of the other Party: (a) the same model line of motor vehicles in the same class of vehicles produced in the same plant in the territory of a Party; (b) the same model line of motor vehicles produced in the same plant in the territory of a Party; (c) the same model line of motor vehicles produced in the territory of a Party; (d) the same class of motor vehicles produced in the same plant in the territory of a Party; or (e) any other category as the Parties may decide. 4. Each Party shall provide that, for the purpose of calculating the net cost of a good as set out in Annex 3-B (Product-Specific Rules of Origin), the calculation for automotive materials produced in the same plant may be averaged: (a) over the fiscal year of the motor vehicle producer to whom the good is sold; (b) over any quarter or month; or (c) over the fiscal year of the producer of the automotive material, provided that the good was produced during the fiscal year, quarter or month forming the basis for the calculation, in which: (i) the average in subparagraph (a) is calculated separately for those goods sold to one or more motor vehicle producers; or (ii) the average in subparagraph (a) or (b) is calculated separately for those goods that are exported to the territory of another Party. Article 3.7: De Minimis 1. Each Party shall provide that agood that does not satisfy the applicable change in tariff classification requirement in accordance with Annex 3-B (Product-Specific Rules of Origin) will nonetheless be considered an originating good if: (a) for a good, other than that provided for in Chapters 50 through 63 of the Harmonized System (HS), the value of all non-originating materials used in the production of the good that did not undergo the required change in tariff classification does not exceed 10 per cent of the value of the good; or (b) for a good provided for in Chapters 50 through 63of the Harmonized System (HS), the total weight of all non-originating materials used in the production of the good that did not undergo the required change in tariff classification does not exceed 10 per cent of the total weight of that good; and the good satisfies all other applicable requirements of this Chapter. 2. The value of non-originating materials referred to in paragraph 1 shall be included in the value of non-originating materials for any applicable product-specific rule of origin based on a value requirement as set out in Annex 3-B (Product-Specific Rules of Origin). Article 3.8: Fungible Goods and Materials 1. Each Party shall provide that a fungible good or material is treated as originating based on the: (a) physical segregation of each fungible good or material; or (b) use of any inventory management method recognized in the generally accepted accounting principles of the Party in which production is performed if the fungible good or material is commingled. 2. Once an inventory management method is selected under paragraph 1, that method must be used for those fungible goods or materials throughout the fiscal year of the person that made the selection. Article 3.9: Indirect Materials Each Party shall provide that an indirect material is an originating material without regard to where it is produced and its value shall be the cost registered in accordance with the generally accepted accounting principles in the records of the producer of the good. Article 3.10: Accessories, Spare Parts, Tools, and Instructional or Other Information Materials Each Party shall provide that accessories, spare parts, tools, or instructional or other information materials delivered with a good that form part of its standard accessories, spare parts, or tools are to be disregarded in determining whether all the non.originating materials used in the production of the good undergo the applicable requirements set out in Annex 3-B (Product-Specific Rules of Origin) provided that: (a) the accessories, spare parts, tools,and instructional or other information materials are classified with, delivered with, and not invoiced separately from the good; and (b) the quantities and value of the accessories, spare parts, tools, and instructional or other information materials are customary for that good. Article 3.11: Packaging Materials and Containers for Retail Sale Each Party shall provide that packaging materials and containers in which a good is packaged for retail sale, which are classified with the good, are disregarded in determining the originating status of the good. Article 3.12: Packing Materials and Containers for Transportation and Shipment Each Party shall provide that packing materials and containers for the transportation and shipment of a good are not taken into account in determining the originating status of agood. Article 3.13: Sets of Goods Except as provided in Annex 3-B (Product-Specific Rules of Origin), each Party shall provide that a set of goods, as referred to in General Rule 3 of the Harmonized System (HS), are considered originating provided that: (a) all of the component goods are originating; or (b) if the set contains non-originating component goods, the value of the non.originating goods does not exceed 25 per cent of the value of the set of goods. Article 3.14: Transit and Transhipment 1. Each Party shall provide that an originating good retains its originating status if the good has been transported from the territory of the exporting Party to the territory of importing Party without passing through the territory of a non-Party. 2. Each Party shall provide that if an originating good is transported through the territory of one or more non-Parties, the good retains its originating status provided that the good: (a) has not undergone any further operation in the territory of a non-Party, except for logistics activities including unloading, reloading, storing, or any other operation necessary to preserve it in good condition or to transport it to the importing Party; and (b) remains under thecontrol of the customs authority in the territory of a non-Party. Section C: Origin Procedures Article 3.15: Claims for Preferential Tariff Treatment 1. Each Party shall provide that an importer may, upon importation of a good, make a claim for preferential tariff treatment, based on a declaration of origin completed by the exporter or producer, for the purpose of certifying that a good being exported from the territory of a Party into the territory of the other Party qualifies as an originating good. 2. A Party may allow, in accordance with its laws and regulations, a claim for preferential tariff treatment to be based on a declaration of origin completed by the importer that the good qualifies as an originating good. If on the date of entry into force of this Agreement a Party does not allow a claim for preferential treatment to be based on a declaration of origin completed by the importer, that Party shall within 5 years complete a review of the procedures necessary to consider such a claim. 3. For the purposes of paragraph 2, an importing Party may:1 (a) require that an importer who completes a declaration of origin provide documents or other information to support the declaration; (b) establish in its law conditions that an importer shall meet to complete a declaration of origin. 4. Each Party shall provide that a declaration of origin: (a) need not follow a prescribed format; (b) contains a set of minimum data requirements as set out in Annex 3-A (Minimum Data Elements of the Declaration of Origin); and (c) may be provided on an invoice or any other document, including a company letterhead. 5. Each Party shall provide that a declaration of origin may apply to a single shipment of one or more goods into the territory of a Party provided that the declaration certifies that each good qualifies as originating. 1 Paragraph 3 applies to aParty from the date ofimplementationof the declarationof originbythe importer under paragraph 2. 6. A Party shall not reject a claim for preferential tariff treatment for the sole reason that the invoice was issued in a non-Party. However, a declaration of origin shall not be provided on an invoice or any other document issued in a non-Party. 7. Each Party shall provide that a declaration of origin is valid for one year after the date that it was issued or for alonger period specified by the laws and regulations of the importing Party. 8. Each Party shall allow a declaration of origin to be completed and submitted electronically and shall accept the declaration of origin with an electronic or digital signature. 9. Each Party shall allow an importer to submit a declaration of origin in English. If the declaration of origin is not in English, the importing Party may require the importer to submit a translation: (a) for Canada, in English or French; or (b) for Indonesia, in English, and the importing Party may require the submission of the non-translated declaration of origin. 10. For the purposes of paragraph 8, oncea Party receives a declaration of origin electronically, it shall not require a paper document of the same declaration prior to the release of the goods in the Party’s territory except in limited circumstances set out in its laws, regulations, or procedures. Article 3.16: Basis of a Declaration of Origin 1. Each Party shall provide that if a producer declares the origin of a good, the declaration of origin is completed on the basis of the producer having information that the good is originating. 2. Each Party shall provide that if the exporter is not the producer of the good, a declaration of origin may be completed by the exporter of the good on the basis of: (a) the exporter having information, including documentation, that demonstrates that the good is originating; or (b) reasonable reliance on the producer’s written representation, such as information contained in a declaration of origin, that the good is originating. 3. Each Party shall provide that a declaration of origin may be completed by the importer of the good on the basis of:2 (a) the importer having documentation that the good is originating; or (b) reasonable reliance on supporting documentation provided by the exporter or producer that the good is originating. 4. For greatercertainty, nothing in paragraph 1 or 2 shall be construed to allow a Party to require an exporter or producer to complete a declaration of origin or provide a declaration of origin to another person. 5. The information, including documents and written representations, referred to in paragraphs 1 to 3 are subject to the requirements of Article 3.21 (Record Keeping Requirements). 2 Paragraph 3 applies to aParty from the date ofimplementationof thedeclaration of origin by theimporter under Article 3.15.2 (Claims for Preferential Tariff Treatment). Article 3.17: Minor Discrepancies and Errors Each Party shall provide that its customs administration shall not reject a declaration of origin due to minor discrepancies or errors in it, such as slight discrepancies between the statements made in the declaration of origin and those made in the import documentation submitted to the customs administration, or typing or formatting errors, provided that these do not create doubt as to the validity of the declaration of origin or the correctness of the import documentation. Article 3.18: Waiver of Declaration of Origin 1. A Party shall notrequirea declaration of origin if: (a) the customs value of the importation does not exceed US $200 or the equivalent amount in the importing Party’s currency or any higher amount as the importing Party may establish; or (b) it is a good for which the importing Party has waived the requirement or does not require the importer to present a declaration of origin, provided that the importation does not form part of a series of importations carried out or planned for the purpose of evading compliance with the importing Party’s laws, regulations, or procedures governing claims for preferential tariff treatment under this Agreement. 2. The Parties shall enter into discussionsto review this Article within fiveyears after the date of entry into force of this Agreement. Article 3.19: Obligations Relating to Importation 1. Except as otherwise provided in this Chapter, each Party shall provide that, for the purpose of claiming preferential tariff treatment in accordance with its laws and regulations, the importer shall: (a) make a statement forming part of the import document that the good qualifies as an originating good; (b) have a valid declaration of origin in its possession at the time the statement referred to in subparagraph (a) is made; and (c) provide a copy of the declaration of origin to the importing Party if required by that Party. 2. Each Party shall provide that, if the importer has reason to believe that the declaration of origin is based on incorrect information that could affect the accuracy or validity of the declaration of origin, the importer shall in accordance with that Party’s laws and regulations correct the importation document and pay any customs duty and, if applicable, penalties owed. 3. An importing Party shall not subject an importer to a penalty for making an invalid claim for preferential tariff treatment if the importer, on becoming aware that their claim is not valid and prior to discovery of the error by that Party, voluntarily corrects the claim in accordance with that Party’s laws and regulations, and pays any applicable customs duty under the circumstances provided for in the Party’s law. 4. A Party may require an importer to demonstrate that a good for which the importer claims preferential tariff treatment was shipped in accordance with Article 3.14 (Transit and Transhipment) by providing: (a) transportation documents, including the multimodal or combined transportation documents, such as bills of lading or waybills, indicating the shipping route and all points of shipment and transhipment prior to the importation of the good; and (b) if the good is shipped through or transhipped outside the territories of the Parties, relevant documents, such as in the case of storage, storage documents or a copy of the customs control documents, demonstrating that the good remained under customs control while outside the territories of the Parties. Article 3.20: Obligations Relating to Exportation 1. Each Party shall provide that an exporter or producer in its territory that completes a declaration of origin shall submit a copy of that declaration of origin to its competent authority on its request. 2. Each Party may provide that a false declaration of origin or other false information provided by an exporter or a producer in its territory to support a claim that a good exported to the territory of the other Party is originating has the same legal consequences, with appropriate modifications, as those that would apply to an importer in its territory that makes a false statement or representation in connection with an importation. 3. Each Party shall provide that an exporter or producer who has completed a declaration of origin must immediately notify, in writing, every person and the competent authority of the exporting Party to whom the exporter or producer provided the declaration of origin if the exporter or producer becomes aware, or has reason to believe, that the declaration of origin contains or is based on incorrect information affecting the originating status of a good covered by the declaration of origin. 4. A Party shall not impose penalties on an exporter or producer in its territory that voluntarily provides written notification pursuant to paragraph 3 with respect to a declaration of origin. 5. Each Party shall allow adeclaration of origin to be maintained in any medium and to be submitted electronically from the exporter or producer in the territory of a Party to an importer in the territory of a Party. Article 3.21: Record Keeping Requirements 1. Each Party shall provide that an importer claiming preferential tariff treatment for a good imported into the territory of that Party shall maintain, for four years from the date of importation of the good, or a longer period as specified in that Party’s laws and regulations: (a) the documentation related to the importation, including the declaration of origin that served as the basis for the claim; and (b) all records necessary to demonstrate that the good is originating and qualified for preferential tariff treatment, if the claim was based on a declaration of origin completed by the importer.3 2. Each Party shall provide that a producer or exporter in its territory that provides a declaration of origin shall maintain, for four years from the date the declaration of origin was issued or a longer period as specified in that Party’s laws and regulations, all records necessary to demonstrate that a good for which the exporter or producer provided a declaration of origin is originating, including records associated with: (a) the purchase of, cost of, value of, shipping of, and payment for, the good or material; (b) the purchase of, cost of, value of, shipping of, and payment for all materials, including indirect materials, used in the production of the good or material; and (c) the production of the good in the form in which the good is exported or the production of the material in the form in which the material was sold. 3. Each Party shall provide that an importer, exporter, or producer in its territory may choose to maintain the records specified in paragraphs 1 and 2 in any medium that allows for prompt retrieval and printing, including electronic, optical, magnetic, or written form in accordance with that Party’s law. Article 3.22: Verification of Origin For the purpose of determining whether a good imported into its territory is originating, the customs administration of the importing Party may conduct a verification of a claim for preferential tariff treatment by one or more of the following: (a) a written request for information to the importer, in accordance with Article 3.23 (Request for Verification of Origin) and Article 3.25 (Supplementary Provisions for Verifications of Origin); (b) a written request for information to the exporter or producer, in accordance with Article 3.23 (Request for Verification of Origin) and Article 3.25 (Supplementary Provisions for Verifications of Origin); 3 Paragraph 1(b) applies to aParty fromthedate of implementationof thedeclaration of origin bytheimporter under Article 3.15.2 (Claims for Preferential Tariff Treatment). (c) a verification visit to the premises of the exporter or producer in the territory of the other Party, in accordance with Article 3.24 (Verification Visit) and Article 3.25 (Supplementary Provisions for Verifications of Origin); or (d) any other procedure to which the Parties may decide. Article 3.23: Request for Verification of Origin 1. For the purpose of determining whether a good imported into its territory is originating, the customs administration of the importing Party may, pursuant to subparagraphs (a) and (b) of Article 3.22 (Verification of Origin), conduct a verification of a claim for preferential tariff treatment by sending a written request for information to the importer, exporter, or producer. 2. A written request for information under paragraph 1 shall: (a) include the identity of the customs administration issuing the request; (b) state the reason for the request, including the specific issue the requesting Party seeks to resolve with the verification; and (c) include sufficient information to identify the good that is being verified, which may include the declaration of origin. 3. For greater certainty, if the claim for preferential tariff treatment is based on the importer’s declaration of origin, the importing Party is not required to request information from the exporter or producer to support a claim for preferential tariff treatment. 4. If the claim for preferential tariff treatment is based on a declaration of origin completed by the exporter or producer: (a) the importing Party may send a request for information to the importer under paragraph 1. If in response to such request, the importer does not provide information to the importing Party or the information provided is not sufficient to support a claim for preferential tariff treatment, the importing Party shall request information from the exporter or producer pursuant to subparagraphs (b) or(c) of Article 3.22 (Verification of Origin) before it may deny the claim for preferential tariff treatment; or (b) the importing Party may send a request for information directly to the exporter or producer under paragraph 1. 5. The customs administration of the importing Party shall provide the importer with at least 30 days or a shorter period in accordance with its laws and regulations, and the exporter or producer at least 45 days, from the date of receipt of the written request for information sent under Paragraph 1 to respond to the request. 6. If the customs administration of the importing Party initiates a verification to the exporter or producer in accordance with paragraph 1, it shall promptly inform the importer and competent authority of the exporting Party, only for the purpose of their awareness, of the initiation of such verification. 7. If the importing Party conducts a verification, it shall accept information directly from the importer, exporter, or producer. 8. During verification, the importing Party shall allow the release of the good, subject to payment of duties or provision of security as provided for in its laws and regulations. If as a result of the verification the importing Party determines that the good is an originating good, it shall grant preferential tariff treatment to the good and refund any excess duties paid or release any security provided unless the security also covers other obligations, subject to its laws and regulations. 9. Thecustoms administration of the importing Party shall provide the importer with a written determination of origin that includes the findings of facts and the legal basis for the determination. 10. Prior to issuing a written determination after a verification under subparagraphs (a) or (b) of Article 3.22 (Verification of Origin), if the importing Party intends to deny preferential tariff treatment, it may decide to provide the importer and any exporter or producer who is subject to the verification or provided information directly to the importing Party, a period of at least 30 days before the determination is made, for the submission of additional information relating to the origin of the good. 11. For greater certainty, a request for information pursuant to paragraph 1 shall not preclude the use of a verification visit pursuant to Article 3.22(c) (Verification of Origin). Article 3.24: Verification Visit 1. An importing Party may, through its customs administration, conduct a verification visit to the premises of the exporter or producer of the good pursuant to Article 3.22(c) (Verification of Origin), and the applicable procedures, through a request for a verification visit as described in this Article. 2. Prior to conducting a verification visit, the customs administration of the importing Party shall request the written consent of the exporter or producer at least 60 days in advance of the proposed verification visit. 3. For the purpose of paragraph 2, the written request for consent of the exporter or producer to the verification visit shall indicate: (a) the elements provided in Article 3.23.2 (Request for Verification of Origin); (b) the legal authority for the visit; (c) the proposed date and location for the visit; (d) the specific purpose of the visit; and (e) the names and titles of the officials conducting the visit. 4. If the importing Party initiates a verification visit under paragraph 1, it shall, at the time of making the request for consent to the visit under paragraph 2, provide a copy of the request to the competent authority of the other Party. 5. Each Party shall provide that the exporter or producer shall respond within 30 days of the date of its receipt of the written request under paragraph 2 to provide its written consent or refusal for a verification visit. 6. For greatercertainty, the customs administration of the importing Party shall not visit the premises of any exporter or producer in the territory of the exporting Party without written prior consent from the exporter or producer. 7. Each Party shall provide that the competent authority of the exporting Party may, within 15 days of the date of receipt of the copy of the request under paragraph 4, postpone the proposed verification visit for a period not exceeding 45 days from the proposed date of the visit, or for a longer period that the Parties may decide. 8. Each Party shall provide that, the exporter or producer may, on a single occasion and within 15 days of the date of receipt of the request under paragraph 2, postpone the proposed verification visit for a period not exceeding 45 days from the proposed date of the visit. 9. A Party shall not deny preferential tariff treatment to a good based only on the postponement of a verification visit under paragraph 7 or paragraph 8. 10. Prior to issuing a written determination after a verification pursuant to Article 3.22(c) (Verification of Origin), if the importing Party intends to deny preferential tariff treatment, it shall provide the importer and any exporter or producer who is subject to the verification or provided information directly to the importing Party, a period of at least 30 days for the submission of additional information relating to the origin of the good. Article 3.25: Supplementary Provisions for Verifications of Origin 1. For the purposes of Article 3.23 (Request forVerification of Origin) and Article 3.24 (Verification Visit): (a) it is sufficient for a Party to rely on the contact information of an exporter, producer, or importer located in the territory of a Party provided in a declaration of origin; and (b) all communication to the importer, exporter, producer, customs administration, or competent authority of the exporting Party shall be sent by any means that can produce any confirmation of receipt. The specified time periods will begin from the date of receipt. 2. If the customs administration of the importing Party conducts a verification under Article 3.22 (Verification of Origin), it shall: (a) ensure that the written request for information, or documentation to be reviewed, is limited to information and documentation to determine whether the good is originating; and (b) describe the information or documentation requested in sufficient detail to allow the importer, exporter, or producer to identify the information and documentation necessary to respond. 3. For the purposes of Article 3.22 (Verification of Origin), the importing Party shall inform the importer, and any exporter or producer who is subject to the verification or provided information directly to the importing Party, of the results. 4. If verifications by a Party indicate a pattern of conduct by an importer, exporter, or producer of false or unsupported representations relevant to a claim that a good imported into its territory qualifies as an originating good, the Party may withhold preferential tariff treatment to identical goods imported, exported, or produced by that person until that person demonstrates that the identical goods qualify as originating. For the purposes of this paragraph, “identical goods” means goods that are the same in all respects relevant to the particular rule of origin that qualifies the goods as originating. 5. If a pattern of conduct is established, the verification process does not need to be conducted on future imports of identical goods. However, the importer must be notified each time the goods are denied preferential tariff treatment. The exporter or producer must also be notified that the goods have been denied preferential tariff treatment if they have provided the importer with a declaration of origin after a pattern of conduct has been established. 6. In conducting a verification of origin of a good imported into its territory pursuant to Article 3.22 (Verification of Origin), a Party may conduct a verification of the origin of a material that is used in the production of that good in accordance with Article 3.22 (Verification of Origin), and the procedures in paragraphs 1, 2, and 5 of Article 3.23 (Request for Verification of Origin), paragraphs 1 through 5, 6, 7, and 8 of Article 3.24 (Verification Visit), paragraphs 1(b) and 2 of this Article, and Article 3.26 (Participation of Observers in Origin Verification). 7. If a Party conducts a verification of a material under paragraph 6, the Party may consider the material to be non-originating in determining whether the good is an originating good if the producer or supplier of that material does not allow the Party access to information required to make a determination of whether the material is an originating material by the following or other means: (a) denial of access to its records; (b) failure to respond to a request for information; or (c) failure to provide its written consent within 30 days of the date ofreceipt of a request for a verification visit under Article 3.24.2 (Verification Visit). 8. Ifthe customs administration of the importing Party considers the information obtained under Article 3.22 (Verification of Origin) is not sufficient to make a determination, it may request the assistance of the exporting Party. On request, the exporting Party may, as it deems appropriate and in accordance with its laws and regulations, assist with the verification by providing information it has that is relevant to the verification of origin. The importing Party shall not deny a claim for preferential tariff treatment solely on the grounds that the exporting Party did not provide the requested assistance. 9. The Party conducting a verification shall, as expeditiously as possible and no later than 120 days after it has received all the information necessary to make the determination, provide the written determination under Article 3.23.9 (Request for Verification of Origin). In exceptional cases, the Party may extend this period for up to 90 days after notifying the importer, and any exporter or producer who is subject to the verification or provided information during the verification. For the purposes of this paragraph, information necessary means any information collected pursuant to a verification request to an exporter or producer, information that may be required regarding the materials used in the production of a good or any assistance requested under paragraph 8. Article 3.26: Participation of Observers in Origin Verification Each Party shall allow an exporter or a producer whose good is the subject of a verification visit by the other Party pursuant to Article 3.22(c) (Verification of Origin) to designate three observers4 to be present during the visit, provided that: (a) the observers do not participate in a manner other than as observers; (b) the failure of the exporter or producer to designateobservers does not result in the postponement of the visit; and (c) the exporter or producer of a good identifies, to the customs administration conducting the verification visit, any observers designated to be present during the visit. Article 3.27: Determinations on Claims for Preferential Tariff Treatment 1. Except as otherwise provided in paragraph 2, each Party shall grant a claim for preferential tariff treatment made in accordance with this Chapter for a good that arrives in its territory on or after the date of entry into force of this Agreement. In addition, if permitted by the importing Party, the importing Party shall grant a claim for preferential tariff treatment made in accordance with this Chapter for a good which is imported into its territory or released from customs control on or after the date of entry into force of this Agreement. 2. Theimporting Party may deny a claim for preferential tariff treatment if: (a) it determines that the good does not qualify as originating under this Chapter; (b) it has not received sufficient information to determine that the good qualifies as originating pursuant to a verification under Article 3.22 (Verification of Origin); 4 The exporter or producer may designate, as one ofthe three observers, asingle government official to bepresent during averification visit. (c) it has not received a response to a written request for information or questionnaire from the importer, producer, or exporter in accordance with subparagraph (a) or (b) of Article 3.22 (Verification of Origin); (d) the exporter or producer does not provide its written consent to a verification visit pursuant to Article 3.22(c) (Verification of Origin); or (e) the importer, exporter, or producer fails to comply with the requirements of this Chapter. Article 3.28: Refunds and Claims for Preferential Tariff Treatment after Importation 1. Each Party may, in accordance with its laws and regulations, provide that an importer may apply for preferential tariff treatment and a refund of any excess duties paid for a good if the importer did not make a claim for preferential tariff treatment at the time of importation, provided that the good would have qualified for preferential tariff treatment when it was imported into the territory of the Party. 2. As a condition for preferential tariff treatment under paragraph 1, the importing Party may require that the importer: (a) make a claim for preferential tariff treatment; (b) provide a statement that the good was originating at the time of importation; (c) provide a copy of the declaration of origin; and (d) provide such other documentation relating to the importation of the good as the importing Party may require, no later than one year after the date of importation or a longer period if specified in the importing Party’s laws and regulations. Article 3.29: Penalties Each Party shall maintain criminal, civil, or administrative penalties for violations of its laws and regulations related to this Chapter. Article 3.30: Advance Rulings Relating to Origin 1. Each Party shall, through its customs administration, provide for the expeditious issuance of written advance rulings, prior to the importation of a good into its territory, to an importer in its territory or an exporter or producer of the exporting Party, or any other person with a justifiable cause, or a representative thereof, concerning whether a good qualifies as an originating good under this Chapter. 2. A Party may require that the person requesting an advance ruling pursuant to paragraph 1 have legal representation or be registered in its territory. 3. Each Party shall adopt or maintain procedures forthe issuance of advance rulings, including a detailed description of the information reasonably required to process an application for a ruling. 4. Each Party shall make the following information available on one or morefree, publicly accessible websites, and shall ensure that the information is updated as necessary: (a) the advance rulings procedures as set out in paragraph 3; (b) newly issued advance rulings pursuant to this Article and Article 4.8 (Customs Procedure and TradeFacilitation – Advance Rulings), in accordance with its laws, regulations, and procedures, which may be subject to the consent of the person to whom the advance ruling was issued. 5. Each Party shall endeavour to allow a person to request an advance ruling through electronic means, such as via email or through an internet-based system. 6. Each Party shall provide that its customs administration: (a) may, at any time during the course of an evaluation of an application for an advance ruling, request supplemental information from the person requesting the ruling; (b) issue the ruling within 120 days from the date on which it has obtained all necessary information from the person requesting the advance ruling; and (c) provide, to the person requesting the advance ruling, a full explanation of the reasons for the ruling. 7. When an application for an advance ruling involves an issue that is the subject of: (a) a verification of origin; (b) a review by, or appeal to, a customs administration; or (c) a judicial or quasi-judicial review in the customs administration’s territory, the customs administration, in accordance with its laws, may decline or postpone the issuance of the ruling. 8. Subject to paragraph 10, each Party shall apply an advance ruling to importations into its territory of the product for which the ruling was requested on the date of its issuance or at a later date if specified in the ruling. 9. Each Party shall issue consistent advance rulings when all relevant facts and circumstances are identical. 10. A Party may issue a modification or revocation ofan advance ruling if: (a) the ruling is based on an error of fact; (b) there is a change in the material facts or circumstances on which the ruling is based; (c) it is to conform with an amendment of this Chapter or Chapter 2 (National Treatment and Market Access for Goods); or (d) it is to conform with a judicial or quasi-judicial decision or a change in its law. 11. A modification or revocation of an advance ruling issued in accordance with paragraph 10 is effective on the date on which the modification or revocation is issued, or on a later date if specified in the ruling, and shall not be applied to importations of a product that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted in accordance with its terms and conditions. 12. Each Party shall provide that an advance ruling remains in effect and is honoured unless it has been modified or revoked pursuant to paragraph 10. 13. A Party shall not impose a fee or chargefor the issuance or processing of advance rulings. 14. Each Party shall promote the use of the other Party’s advance rulings by encouraging its traders to request advance rulings from the other Party. Article 3.31: Review and Appeal For greater certainty, the importing Party shall grant the rights of review and appeal in matters relating to the determination of origin under this Chapter in accordance with Article 4.18 (Customs Procedure and Trade Facilitation – Review and Appeal). Article 3.32: Confidentiality For greater certainty, Article 4.19 (Customs Procedure and Trade Facilitation – Protection of Trader Information) applies to information that relates to a trader that is collected or shared under this Chapter. Article 3.33: Administrative Regulations on Origin Procedures 1. The Parties shall establish and implement through their respective laws, regulations, or administrative policies, administrative regulations regarding the interpretation, application, and administration of this Chapter, including the Minimum Data Elements of the Declaration of Origin contained in Annex 3-A. 2. Each Party shall implement any modification of or addition to the administrative regulations, referred to in paragraph 1, within such period as the Parties may decide. 3. Each Party shall apply the administrative regulations, referred to in paragraph 1, in addition to the obligations in the Chapter. Article 3.34: Cooperation 1. The Parties shall cooperate, to the extent practicable and subject to available resources, to jointly organize training programs on trade and customs issues related to this Chapter, such as simulated audit environment exercises, for the government officials who participate directly in trade and customs procedures. 2. With respect to goods considered originating in accordance with Article 3.4 (Accumulation), the Parties may cooperate with a non-Party in developing origin procedures based on the principles of this Chapter. Section D: Other Matters Article 3.35: Committee on Rules of Origin, Origin Procedures, and Trade Facilitation 1. The Parties hereby establish a Committee on Rules of Origin, Origin Procedures, and Trade Facilitation (Committee), composed of government representatives of each Party, to consider any matters arising under this Chapter and Chapter 4 (Customs Procedures and Trade Facilitation). 2. The Committee shall consult regularly to ensure that this Chapter and Chapter 4 (Customs Procedures and Trade Facilitation) is administered effectively, uniformly, and consistently with the spirit and objectives of this Agreement, and shall cooperate in the administration of this Chapter and Chapter 4 (Customs Procedures and Trade Facilitation). 3. The Committee shall consult to discuss possible amendments or modifications to this Chapter and its Annexes, taking into account developments in technology, production processes, or other related matters. 4. Prior to the entry into force of an amended version of the Harmonized System (HS), the Committee shall consult to prepare updates to this Chapter that are necessary to reflect changes to the Harmonized System (HS). CHAPTER 4 CUSTOMS PROCEDURES AND TRADE FACILITATION Article 4.1: Objectives and Principles 1. Each Party affirmsitsrights and obligations under the Agreement on Trade Facilitation, set out in Annex 1A to the WTO Agreement. 2. Each Party shall administer its customs procedures relating to the importation, exportation, and transit of goods, with the objective of: (a) promoting predictability, consistency, and transparency in the application of its customs laws and regulations throughout its territory; (b) facilitating the importation, exportation, and transit of goods that meet its laws, regulations, and procedural requirements; and (c) ensuring compliance with its law. 3. ThePartiesshall seek to promote cooperation between theircustoms administrations. 4. For greatercertainty, nothing in this Chapter shall prevent a Party from administering or introducing a measure that ensures or enhances trader compliance with its laws, regulations, or procedural requirements relating to the importation, exportation, or transit of goods, in a manner that is consistent with its international obligations and the obligations in this Chapter. This includes a measure that seeks to ensure the safety and security of the Party and its citizens through the proper declaration of goods and the payment of applicable duties, taxes, fees, and charges by traders. Article 4.2: Scope This Chapter applies to customs matters with respect to goods traded between the Parties in accordance with the respective laws and regulations of each Party. Article 4.3: Publication and Availability of Information Each Party shall make the following information available on one or more free, publicly accessible websites, and shall ensure that the information is updated as necessary: (a) information the Party is required to publish under the Agreement on Trade Facilitation, set out in Annex 1A to the WTO Agreement, and Article X (Publication and Administration of Trade Regulations) of the General Agreement on Tariffs and Trade 1947, set out in Annex 1A to the WTO Agreement, in a manner that enables persons to become acquainted with them; (b) the Party’s customs procedures relating to the importation, exportation, and transit of goods, in a manner that is clear and comprehensive; (c) a description of the procedures and practical steps an interested person needs to follow for the importation into, exportation from, and transit of goods through the Party’s territory; (d) contact information for any enquiry point maintained by the Party pursuant to Article 4.4 (Enquiry Points); (e) a comprehensive list of the Party’s governmental authorities responsible formeasures imposed in relation to the importation into, exportation from, and transit of goods through its territory, including their contact information; (f) information on the Party’s security regime and its requirements, if administered, including the method used to establish a security amount, as set out in Article 4.10.4 (Release of Goods); (g) information on the Party’s single window system,as set out in Article 4.12 (Single Window System); (h) information on the Party’s penalty regime for breaches of customs laws and regulations, as set out in Article 4.17 (Penalties); (i) information on how a person may request a review or appeal, pursuant to Article 4.18 (Review and Appeal); and (j) information on how a person may submit a complaint, in accordance with Article 4.20.2 (Standards of Conduct). Article 4.4: Enquiry Points 1. Each Party shall maintain one or more enquiry points to address enquiries from interested persons regarding its customs procedures pertaining to the importation, exportation, and transit of goods. 2. A Party shall not require the payment of a fee or charge for answering an enquiry under paragraph 1. For greater certainty, a Party may require payment of a fee or charge with respect to other enquiries requiring document search, duplication, and review in connection with requests forpublic access to government records made in accordance with its laws and regulations. 3. Each Party shall ensure that a response to an enquiry under paragraph 1 is provided within a reasonable period of time, which may vary depending on the nature or complexity of the request. Article 4.5: Trader Consultation 1. If a Party proposes to adopt a regulation of general application governing trade and customs matters relating to goods, that Party shall, to the extent possible and in accordance with its law: (a) publish the proposed regulation on a free, publicly accessible website; or (b) make information on the proposed regulation available free of charge and through any electronic means, as early as possible, before its adoption. 2. Each Party shall, to the extent possible and in accordance with its law, provide interested persons the opportunity to comment on a proposed regulation referred to in paragraph 1. 3. Each Party shall allow for communication between its customs administration and traders within its territory regarding itsprocedures related to the importation, exportation, and transit of goods, including emerging issues. These communications may take place regularly or on an ad hoc basis. Article 4.6: Tariff Classification of Goods For the purposes of determining the tariff classification of goods traded between the Parties, each Party shall apply the Harmonized System (HS). Article 4.7: Customs Valuation of Goods 1. For the purposes of determining the customs value of goods traded between the Parties, each Party shall apply the provisions contained in Part Iand Annex I of the Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (Customs Valuation Agreement), set out in Annex 1A of the WTO Agreement. 2. In applying paragraph 1, each Party shall examine the customs value of an imported good on its own merit, giving due consideration to the circumstances surrounding the individual importation. To this end, a Party shall not reject the application of the “transaction value” method under Article 1 of the Customs Valuation Agreement, solely based on the fact that the price declared for an imported good is lower than the prevailing market prices for identical imported goods, or lower than the prevailing market prices for similar imported goods, as applicable. 3. To the greatest extent possible, if an import declaration has been presented and the customs administration of the importing Party has reason to doubt the truth or accuracy of the particulars of the declaration, or of documents produced in support of the declared customs value, the Party’s customs administration shall apply the provisions contained in Decision 6.1 of the WTO Committee on Customs Valuation. 4. For greatercertainty, for the purposesof this Article, a Party’s communication in writing as referred to in the Customs Valuation Agreement or in Decision 6.1 of the WTO Committee on Customs Valuation may be done through electronic means. Article 4.8: Advance Rulings 1. Each Party shall issue anadvance ruling on: (a) thetariff classification of a good, in accordance with theHarmonized System (HS); (b) the appropriate method or criteria to be used for determining the customs value of a good, under a particular set of facts, in accordance with the Customs Valuation Agreement; (c) the origin of a good; and (d) any other matter that the Parties may decide. 2. For the purposesof paragraph 1, each Party shall issue advance rulings in accordance with Article 3.30 (Rules of Origin and Origin Procedures – Advance Rulings Relating to Origin). Article 4.9: Pre-Arrival Processing 1. Each Party shall adopt or maintain procedures allowing for the submission of information, including documentation or data, required for the importation of goods, in order to begin processing prior to the arrival of goods with a view to expediting the release of goods upon arrival. 2. Each Party shall, as appropriate, provide for the advance submission of information, including documentation or data, referred to in paragraph 1 in electronic format for pre-arrival processing of this information. Article 4.10: Release of Goods 1. In order to facilitate trade between the Parties, each Party shall adopt or maintain simplified customs procedures for the efficient release of goods. 2. Pursuant to paragraph 1, each Party shall adopt or maintain procedures that: (a) provide for the immediate release of goods upon receipt of thecustoms declaration and fulfillment of all applicable requirements and procedures; (b) provide for the electronic submission and processing of information, including documentation or data, prior to the arrival of the goods in order to expedite the release of goods from customs control upon arrival; (c) allow goods to be released at the point of arrival without requiring temporary transfer to warehouses or other facilities; and (d) require that the importer be informed when a Party does not release the goods in accordance with subparagraph (a), including, to the extent permitted by itslaws and regulations, the reasons why the goods are not released. 3. Each Party shall adopt or maintain procedures that provide for therelease of goods prior to a final determination and payment of any duties, taxes, fees, and charges imposed on or in connection with the importation of the goods, when these elements are not determined prior to or promptly upon arrival, provided that the goods are otherwise eligible for release and any security required by the importing Party has been provided. 4. If a Party requires security as a condition for release, that Party shall: (a) allow for a security instrument to cover multiple importations; (b) limit the security to an amount that iscalculated to ensure compliance with payment of duties, taxes, fees, and charges, and that must not represent an indirect protection of domestic traders or goods; and (c) ensure that the security isdischarged as soon as possible after its customs administration is satisfied that the obligations arising from the importation of the goods have been fulfilled or, for instruments covering multiple importations, until it is no longer required by the customs administration. 5. Each Party shall allow goods intended for importation to be moved under customs control from the point of entry into the Party to another customs office in its territory, provided the applicable requirements are met. 6. Nothing in this Article requires a Party to release a good if its requirements for release have not been met. Article 4.11: Express Shipments 1. Each Party shall adopt or maintain expedited customs procedures for express shipments for at least those goods entered through an air cargo facility while maintaining appropriate customs control and selection by: (a) providing forpre-arrival processing of information, including documentation or data, required to release express shipments; (b) permitting, to the extent possible, the single submission of information, including documentation or data, covering all goods contained in an express shipment through electronic means. For greater certainty, additional information, including documentation or data, may be required as a condition for release; (c) minimizing the information, including documentation or data, required for the release of express shipments; (d) providingfor these shipments, under normal circumstances, to be released immediately after arrival, provided that all necessary information, including documentation or data, has been submitted and all requirements have been met; and (e) endeavouring to apply the treatment in subparagraphs (a) through (d) to shipments of any weight or value, recognizing that a Party is permitted to: (i) require additional entry procedures that may vary based on the weight or value of the good. Additional entry procedures include declarations and supporting documentation for the assessment and payment of duties and taxes; and (ii) limit the treatment in subparagraphs (a) through (d) based on the type of good, provided that the treatment is not limited to low value goods such as documents. 2. Nothing in paragraph 1 shall affect the right of a Party to examine, detain, seize, confiscate, or refuse the entry of goods, or to carry out post-clearance audits, including in connection with the use of risk management systems. Further, nothing in paragraph 1 shall prevent a Party from requiring completion of additional entry procedures and any necessary information, including documentation or data, for the release of restricted or controlled goods. Article 4.12: Single Window System 1. Each Party shall maintain a single window system enabling a trader to electronically submit, through a single entry point, information, including documentation or data, required by the Party for the importation of a good into its territory. 2. Each Party shall, through the single window system and in a timely manner, inform a trader that is using its single window system of the status of the release of goods. 3. If a Party receives information, including documentation or data, for a good or shipment of goods through its single window system, the Party shall not request the same information for that good or shipment of goods, except in urgent circumstances or pursuant to other limited exceptions set out in its laws, regulations, or procedures. Each Party shall minimize the extent to which paper documents are required if electronic copies are provided. Article 4.13: Risk Management 1. Each Party shall adopt or maintain a risk management regime that enables its customs administration to focus enhanced customs controls on high-risk shipments and facilitates the release and movement of low-risk shipments. 2. Each Party shall administer risk management at the border, as well as in the pre.border and post-border environments. 3. Each Party shall base risk assessment on appropriate selectivity criteria. 4. Each Party shall use electronic systems for risk management and targeting. 5. Each Party shall design and apply risk management in a manner that avoids arbitrary or unjustifiable discrimination, or disguised restrictions on international trade. 6. In order to facilitate trade, each Party shall periodically review and update its risk management regime, as appropriate. Article 4.14: Customs Brokers With a view to allowing traders to fulfill obligations on their own behalf with respect to the importation, exportation, and transit of goods, a Party shall not require the mandatory use of customs brokers. Article 4.15: Consistency 1. With a view to promoting transparency and predictability for traders, each Party shall adopt or maintain administrative measures that support consistency in the implementation and application of its customs laws and regulations throughout its territory. These administrative measures may include, among others, training for customs officials and the issuance of internal guidance or policy documents. 2. For greatercertainty, the administrative measures adopted or maintained pursuant to paragraph 1 shall not prevent a Party’s customs administration from exercising discretion, as provided for in its law, in the implementation and application of its customs laws and regulations. 3. If an inconsistency is discovered in the implementation or application of its customs laws or regulations, the Party shall promptly seek to resolve the inconsistency, if practicable. Article 4.16: Post-Clearance Audit 1. With a view to expediting the release of goods, each Party shall adopt or maintain a post-clearance audit regime to ensure compliance with its customs and other related laws and regulations. 2. Each Party shall conduct post-clearance audits in a risk-based manner. 3. Each Party shall conduct post-clearance audits in a transparent manner that informs the audited person with respect to the Party’s laws, regulations, and procedures, and promotes future compliance. Once an audit is completed, the Party shall without delay notify the person whose records are audited of the results, the basis for the results, and the audited person’s rights and obligations. 4. TheParties acknowledge that information obtained in apost-clearance audit may be used in further administrative, quasi-judicial, or judicial proceedings. 5. Each Party shall, wherever practicable, use the results of post-clearance audits in applying risk management. 6. Each Party shall provide in its laws or regulations a fixed and finite period with respect to record-keeping obligations. Article 4.17: Penalties 1. Each Party shall adopt or maintain a penalty regime addressing breaches of its customs laws or regulations in relation to the importation, exportation, or transit of goods. 2. Each Party shall ensure that its penalties for breaches of customs laws or regulations are administered by its customs administration in a transparent and uniform manner throughout its territory. 3. Each Party shall ensure that a penalty imposed by its customs administration for a breach of its customs laws or regulations is imposed only on the person legally responsible for the breach. 4. Each Party shall ensure that a penalty imposed by its customs administration for a breach of its customs laws or regulations is based on the facts and circumstances of the case, including any previous breaches by the person receiving the penalty, and is commensurate with the nature and severity of the breach. 5. Each Party shall adopt or maintain measures to: (a) avoid conflicts of interest in the assessment and collection of penalties, duties, and taxes by its customs administration; and (b) ensure the objective assessment and collection ofpenalties, duties,and taxes by its customs administration. 6. Each Party shall ensure that when its customs administration imposes a penalty for a breach of its customs laws or regulations, it provides an explanation in writing to the person on whom the penalty is imposed, specifying: (a) the nature of the breach, including the specific laws orregulations concerned; (b) the basis for determining the penalty amount if not set forth specifically in the laws, regulations, or procedures; and (c) the rights and obligations of the person on whom the penalty is imposed. 7. Each Party shall provide in its laws, regulations,or procedures, or otherwise give effect to, a fixed and finite period within which its customs administration may initiate an administrative proceeding to impose a penalty relating to a breach of its customs laws or regulations. For greater certainty, this paragraph does not apply to quasi-judicial or judicial proceedings. Article 4.18: Review and Appeal 1. Each Party shall provide that any person to whom its customs administration issues an administrative determination has the right to: (a) an administrative review or appeal of the determination, by an administrative authority higher than or independent of the official or office that issued the determination; and (b) a quasi-judicial or judicial review or appeal of thedetermination made at the final level of an administrative review. 2. Each Party shall ensure that its procedures for review and appeal are carried out in a non-discriminatory and timely manner, without undue delay. 3. AParty shall nottreat a person that has filed a request for review orappeal less favourably than a person who has not filed such a request, based solely on the filing of that request. 4. A Party shall not impose a fee or charge for an administrative review or appeal of an administrative determination. Nothing in this Article shall prevent a Party from requiring full payment of assessed duties, taxes, penalties, or interest prior to a request for review or appeal. 5. Each Party shall adopt or maintain procedures that allow for a request for administrative review or appeal to be submitted through electronic means. 6. Each Party shall ensure that an authority conducting a review or appeal under paragraph 1 notifies the person in writing of its determination or decision in the review or appeal, and the reasons for the determination or decision. Article 4.19: Protection of Trader Information 1. Each Party shall adopt or maintain measures governing the collection, protection, use, disclosure, retention, correction, and disposal of information that relates to a trader and that is collected by its customs administration for the purposes of administering or enforcing its customs laws and regulations. 2. Each Party shall maintain, through its customs administration, the confidentiality of all information collected for the purposes of administering or enforcing its customs laws and regulations and shall protect that information from use or disclosure that could prejudice the competitive position of the trader to whom the information relates. 3. Notwithstanding paragraph 2, a Party may use or disclose confidential information but only for the purposes of administering or enforcing its customs laws and regulations or as otherwise provided under the Party’s law, including in an administrative, quasi-judicial, or judicial proceeding. 4. If confidential information is used or disclosed other than in accordancewith this Article, the Party shall address the incident and strive to prevent a reoccurrence. Article 4.20: Standards of Conduct 1. Each Party shall adopt or maintain measures to deter its customs officials from engaging in improper behaviour or action in the performance or exercise of their official duties, including any behaviour or action that may result in, or reasonably create the appearance of, the use of their position as a public official for personal or private gain. 2. Each Party shall provide a mechanism for persons to submit a complaint regarding perceived improper or unlawful behaviour of a customs official in its territory. Each Party shall take appropriate and timely action in response to a complaint in accordance with its laws, regulations, or procedures. Article 4.21: Cooperation and Committee 1. Each Party shall designate at least one contact point for the purposes of facilitating the administration of this Chapter and provide the details of the contact point to the other Party, upon entry into force of this Agreement. 2. Each Party may at any time request consultations with the other Party on any matter arising from the interpretation or administration of this Chapter, including sharing information on best practices and experiences. 3. Consultations under paragraph 2 may be conducted through the relevant contact point identified under paragraph 1 or the Committee on Rules of Origin, Origin Procedures, and Trade Facilitation (Committee) established under Article 3.35 (Rules of Origin and Origin Procedures – Committee on Rules of Origin, Origin Procedures, and Trade Facilitation). Consultations shall be concluded within 60 days of the request. The period of time for concluding consultations may be extended by the Parties. 4. When a matter raised in a consultation under paragraph 2 cannot be resolved by the Committee, the Committee may refer the matter to the Joint Committee established under Article 23.1 (Administrative and Institutional Provisions – Establishment of the Joint Committee) for guidance and resolution. 5. Nothing in this Article shall prevent a Party’s customs administration from rendering a decision, or taking any other action within its lawful authority that it considers necessary, pending a resolution of a matter under this Chapter. CHAPTER 5 SANITARY AND PHYTOSANITARY MEASURES Article 5.1: Definitions 1. The definitions in Annex A of the SPS Agreement, as amended, are incorporated into and madepart of this Chapter. 2. For the purposes of this Chapter: (a) competent authority means a government body of each Party responsible for measures ormatters referred to in this Chapter; and (b) WTO SPS Committee means the WTO Committee on Sanitary and Phytosanitary Measures established under Article 12 of the SPS Agreement. 3. The definitions adopted by the: (a) Codex Alimentarius Commission (Codex); (b) World Organisation for Animal Health (WOAH); and (c) International Plant Protection Convention, done at Rome on 6 December 1951 (IPPC), as amended, are incorporated into and made part of this Chapter. 4. To the extent there is an inconsistency between the definitions referred to in paragraphs 1 and 2, and those referred to in paragraph 3, the definitions in paragraph 1 prevail to the extent of the inconsistency. Article 5.2: Objectives The objectives of this Chapter are to: (a) protect human, animal,or plant life or health in the territories of the Parties while facilitating trade; (b) reinforce and build on the SPS Agreement and enhance its practical implementation; (c) strengthen communication, consultation, and cooperation between the Parties, and particularly between the Parties’ competent authorities; (d) ensure that a Party’s sanitary or phytosanitary measures do not create unjustified barriers to trade and do not constitute disguised restrictions on international trade; (e) enhance transparency and understanding on the development and application of each Party’s sanitary and phytosanitary measures; (f) encourage the development and adoption of science-based international standards, guidelines, and recommendations, and promote their implementation by the Parties; and (g) advance and further promote science-based decision making. Article 5.3: Scope This Chapter appliesto all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties. Article 5.4: General Provisions The following provisions of the SPS Agreement, as amended, are incorporated into and madepart of this Chapter: (a) Article 1; (b) Article 2; (c) Article 3; (d) Article 4; (e) Article 5; (f) Article 6; (g) Article 7 and Annex B; (h) Article 8 and Annex C; and (i) Article 13. Article 5.5: Equivalence 1. TheParties acknowledge that recognition of the equivalence of sanitary and phytosanitary measures is an important means to facilitate trade. 2. Further to Article 4 of the SPS Agreement, the Parties shall apply recognition of equivalence to a specific sanitary or phytosanitary measure, or to the extent feasible and appropriate, to a group of measures or on a systems-wide basis. In determining the equivalence of a specific sanitary or phytosanitary measure, group of measures, or on a systems-wide basis, each Party shall take into account the relevant decisions and guidance of the WTO SPS Committee and international standards, guidelines, and recommendations. 3. In determining the equivalence of a sanitary or phytosanitary measure, the importing Party shall take into account available knowledge, information, and relevant experience, including knowledge acquired through experience with the exporting Party’s relevant competent authority. 4. On request of the exporting Party, the importing Party shall explain the objective and rationale of its sanitary or phytosanitary measure and identify the risk the sanitary or phytosanitary measure is intended to address. 5. When the importing Party receives a request for an equivalence determination and determines that the information provided by the exporting Party is sufficient, it shall initiate the equivalence assessment within a reasonable period of time. 6. On request of the exporting Party, the importing Party shall inform the exporting Party of the status of the equivalence assessment. 7. When the importing Party initiates an equivalence assessment, it shall explain, on request of the exporting Party, and without undue delay, its equivalence process, and, if the determination results in recognition of equivalence, its plan for enabling trade. 8. The importing Party shall recognise the equivalence of a sanitary or phytosanitary measure, group of measures, or system, even if the measure, group of measures, or system differs from its own, if the exporting Party objectively demonstrates to the importing Party that the exporting Party’s measure achieves the importing Party’s appropriate level of sanitary or phytosanitary protection taking into account outcomes that the exporting Party’s measures, group of measures, or system achieves. 9. If the importing Party accepts the exporting Party’s sanitary or phytosanitary measures, group of measures, or system as equivalent, the importing Party shall communicate this acceptance to the exporting Party in writing and shall apply this recognition to trade from the exporting Party as soon as practical. 10. If an equivalence assessment does not result in acceptance of equivalence, the importing Party shall communicate that determination and its rationale to the exporting Party without undue delay. 11. If a Party plans to adopt, modify, or repeal a measure that is the subject of a sanitary or phytosanitary equivalence recognition, the following applies: (a) that Party shall notify the other Party of its plan. The notification should take place at an appropriately early stage when any comments submitted by the other Party can be taken into account, including by revising its plan. Upon request of a Party, the Parties shall discuss whether the adoption, modification, or repeal of the measure may affect the equivalence recognition; (b) that Party shall, upon request of the other Party, provide information and rationale concerning its planned adoption, modification, or repeal. The other Party shall review any information provided to it and submit any comments to the Party that plans to adopt, modify, or repeal the measure without unjustifiable delay; and (c) the importing Party shall not revoke its recognition of equivalence on the basis that an adoption, modification, or repeal of the measure is pending. 12. If a Party adopts, modifies,or repeals a measure that is the subject of a sanitary or phytosanitary recognition of equivalence, the importing Party shall maintain its recognition of equivalence if the exporting Party objectively demonstrates that the exporting Party’s measures concerning the good continue to achieve the appropriate level of sanitary or phytosanitary protection of the importing Party. Upon request of a Party, the Parties shall promptly discuss the determination made by the importing Party. Article 5.6: Science and Risk Analysis 1. Recognising the Parties’ rights and obligations under the relevant provisions of the SPS Agreement, this Chapter does not prevent a Party from: (a) establishing its appropriate level of sanitary or phytosanitary protection; and (b) establishing or maintaining an approval procedure, including an import requirement, that requires a risk assessment to be conducted before that Party grants a good access to its market. 2. In conducting its risk assessment and risk management, each Party shall: (a) ensure that each risk assessment it conducts is appropriate to the circumstances of the risk to human, animal, or plant life or health, and takes into account the available relevant scientific evidence; and (b) take into account the relevant decisions and guidance of theWTO SPS Committee and international standards, guidelines, and recommendations. 3. Each Party shall conduct its risk assessment and risk management with respect to a sanitary or phytosanitary regulation within the scope of Annex B of the SPS Agreement in a manner that is documented and provides the other Party an opportunity to comment. 4. Each Party shall consider, as a risk management option, taking no additional sanitary or phytosanitary measure if that would achieve the Party’s appropriate level of sanitary or phytosanitary protection. 5. If the importing Party requires a risk assessment to evaluate a request from the exporting Party to authorise the importation of a good of the exporting Party, the importing Party shall provide, on request of the exporting Party, an explanation of the information required for the risk assessment. On receipt of the requisite information from the exporting Party, the importing Party shall endeavour to facilitate the evaluation of the request for authorisation by scheduling work on this request in accordance with the available resources and applicable procedures, policies, laws, and regulations of the importing Party. 6. On request of the exporting Party, the importing Party shall inform the exporting Party of the status of any risk assessment, risk management, or other evaluation the importing Party requires to facilitate trade and of any delay that may occur during the process. 7. If the importing Party, as a result of arisk assessment, adopts a sanitary or phytosanitary measure that may facilitate trade between the Parties, the importing Party shall implement the measure within a reasonable period of time. 8. Without prejudice to Article 5.9 (Emergency Measures), a Party shall not stop the importation of a good of the other Party for the reason that the importing Party is undertaking a review of its sanitary or phytosanitary measure, if the importing Party permitted the importation of that good of the other Party when the review was initiated. Theimporting Party shall not be considered as having stopped imports for the reason that it is undertaking a review if that Party stops the importation of a good on the basis that the review identified that the information necessary to permit the importation of a good is lacking. For greater certainty, nothing in this paragraph prevents a Party from taking action to address an urgent problem of human, animal, or plant life or health that arises or threatens to arise. 9. In conducting its risk assessment or risk management to facilitate trade between the Parties, a Party may request information from the other Party. A Party that receives a request for information shall endeavour to provide available information to the Party that requested the information within a reasonable period of time and, if possible, by electronic means. 10. In conducting its risk management, a Party may establish an arrangement with the other Party to facilitate the trade of a good that is the subject of a Party’s sanitary or phytosanitary measure. With respect to any such arrangement, the Parties shall take into account the relevant decisions and guidance of the WTO SPS Committee and international standards, guidelines, or recommendations. Article 5.7: Adaptation to Regional Conditions, Including Pest-or Disease-Free Areas and Areas of Low Pest or Disease Prevalence 1. Further to Article 6.2 of the SPS Agreement, each Party shall recognise the concepts of zoning and compartmentalisation. 2. The Parties may cooperate on the recognition of regional conditions,including pest-or disease-free areas, areas of low pest or disease prevalence, pest-free places of production, or pest-free production sites, and zoning or compartmentalisation, with the objective of acquiring confidence in the procedures followed by each Party for that recognition. 3. In making a determination regarding adaptation to regional conditions, each Party shall take into account the relevant decisions and guidance of the WTO SPS Committee and international standards, guidelines, and recommendations. 4. When the importing Party receives a request foradetermination of regional conditions from the exporting Party and determines that the information provided by the exporting Party is sufficient, theimporting Party shall initiate the assessment within a reasonable period of time. 5. When the importing Party commences an assessment of a request for a determination of regional conditions under paragraph 4, that Party shall, on request of the exporting Party, explain its process for making the determination of regional conditions without unjustifiable delay. 6. On request of the exporting Party, theimporting Party shall inform theexporting Party of the status of the assessment of the exporting Party’s request for a determination of regional conditions. 7. The importing Party shall finalise the evaluation and all necessary stages involved for the determination of regional conditions of the exporting Party without undue delay once the importing Party’s competent authority determines that it has received sufficient information from the exporting Party. 8. If the evaluation of the evidence provided by theexporting Party does not result in a determination to recognise the regional conditions, the importing Party shall provide to the exporting Party the rationale for its determination, in writing, within a reasonable period of time. 9. When an importing Party adopts a sanitary or phytosanitary measure that recognises specific regional conditions of the exporting Party, the importing Party shall communicate that decision and the measure to the exporting Party, in writing, and implement the measure within a reasonable period of time. 10. The importing and exporting Parties involved in a particular determination of regional conditions may also decide in advance the risk management measures that shall apply to trade between them in the event of a change in status. 11. If there is an incident that results in a change of status, the exporting Party shall inform the importing Party. If the importing Party modifies or revokes the determination recognising regional conditions as a result of the change in status, on request of the exporting Party, the Parties shall cooperate to assess whether the determination can be reinstated. Article 5.8: Transparency 1. The Parties recognise the value of sharing information about their sanitary and phytosanitary measures on an ongoing basis and of providing the other Party with the opportunity to comment on their proposed sanitary and phytosanitary measures. 2. Inundertaking the obligations of this Article, each Party shall take into account the relevant decisions and guidance of the WTO SPS Committee and international standards, guidelines, and recommendations. 3. A Party shall notify a proposed sanitary or phytosanitary measure that may have an effect on the trade of the other Party, including any that conforms to international standards, guidelines, or recommendations, by using the WTO SPS notification submission system as a means of notifying the other Party. 4. Unless urgent problems of human, animal,or plant life or health protection arise or threaten to arise requiring the adoption of an emergency measure, or the measure is of a trade-facilitating nature, a Party shall normally allow at least 60 days for the other Party to provide written comments on the proposed sanitary or phytosanitary measure, other than proposed legislation, after it makes the notification under paragraph 3. The Party shall consider any reasonable request from the other Party to extend the comment period. On request of the other Party, the Party shall respond to the written comments of the other Party in an appropriate manner. 5. The Party shall make available on a free, publicly available official website or official journal, the proposed sanitary or phytosanitary measure notified under paragraph 3, the legal basis for the measure, and shall, if consistent with its practice, publish the written comments or a summary of the written comments that Party has received from the public on the measure. 6. If a Party proposes a sanitary or phytosanitary measure which does not conform to a relevant international standard, guideline, or recommendation, that Party shall provide to the other Party, on request, the relevant documentation that the Party considered in developing the proposed measure, including documented and objective scientific evidence that is rationally related to the measure, such as risk assessments, relevant studies, and expert opinions. 7. A Party that proposes to adopt a sanitary or phytosanitary measure shall discuss with the other Party, on request and if appropriate and feasible, any scientific or trade concerns that the other Party may raise regarding the proposed measure and the availability of alternative, less trade-restrictive approaches for achieving the Party’s appropriate level of sanitary or phytosanitary protection. 8. Upon request, a Party shall, within 30 days of the request, provide the other Party with the documents or a summary of the documents describing the requirements of proposed sanitary or phytosanitary measures notified to the WTO. If possible, each Party shall endeavour to make the information available in English. 9. Following the notification of sanitary or phytosanitary measures to the WTO, upon request, a Party shall provide the otherParty with the documents or a summary of the documents describing the requirements of the adopted sanitary or phytosanitary measures, within a reasonable period of time as decided by the Parties. If possible, each Party shall endeavour to make the information available in English. 10. Each Party shall publish, preferably by electronic means, notices of final sanitary or phytosanitary measures in an official website or official journal. 11. Each Party shall notify the other Party of final sanitary or phytosanitary measures through the WTO SPS notification submission system. Each Party shall ensure that the text or the notice of a final sanitary or phytosanitary measure specifies the date on which the measure takes effect and the legal basis for the measure. In accordance with a Party’s relevant rules and procedures, and to the extent permitted by the confidentiality and privacy requirements of the Party’s applicable laws and regulations, a Party shall make available to the other Party, on request, significant written comments and relevant documentation considered to support the measure that were received during the comment period. 12. If a final sanitary or phytosanitary measure is substantively altered from the proposed measure, a Party shall also include in the notice of the final sanitary or phytosanitary measure that it publishes, an explanation of: (a) the objective and rationale of the measure and how the measure advances that objective and rationale; and (b) any substantive revisions that it made to the proposed measure. 13. The exporting Party shall notify the importing Party through the contact points referred to in Article 5.15 (Competent Authorities and Contact Points) in a timely and appropriate manner: (a) if it has knowledge of a significant sanitary or phytosanitary risk related to the export of a good from its territory; (b) of urgent situations where a change in animal or plant health status in the territory of the exporting Party may affect current trade; (c) of significant changes in the status of a regionalised pest or disease; (d) of new scientific findings of importance which affect the regulatory response with respect to food safety, pests, or diseases; and (e) of significant changes in food safety, pest,or disease management, control, or eradication policies or practices that may affect current trade. 14. If feasible and appropriate, a Party shall normally provide an interval of not less than six months between the date it publishes a final sanitary or phytosanitary measure and the date on which the measure takes effect, unless the measure is intended to address an urgent problem of human, animal, or plant life or health protection or the measure facilitates trade. 15. Paragraphs 1 to 14apply to sanitary or phytosanitary measures that constitute sanitary or phytosanitary regulations for the purposes of Annex B of the SPS Agreement. 16. A Party shall provide to the other Party, on request, all sanitary or phytosanitary measures related to the importation of a good into that Party’s territory. Article 5.9: Emergency Measures 1. If the importing Party adopts an emergency measure to address an urgent problem of human, animal, or plant life or health that arises or threatens to arise and applies it to the exports of the exporting Party, the importing Party shall promptly notify the exporting Party in writing of that measure through the contact points referred to in Article 5.15 (Competent Authorities and Contact Points). The importing Party shall take into consideration any information provided by the exporting Party in response to the notification. 2. If the importing Party adopts an emergency measure under paragraph 1, itshall assess the scientific basis of that measure within six months and make available, on request, the results of the assessment to the exporting Party. If the emergency measure is maintained after the assessment because the reason for its adoption remains, the importing Party shall review the application of the measure periodically. Article 5.10: Import Checks 1. In applying import checks, each Party shall take into account the relevant decisions and guidance of the WTO SPS Committee and international standards, guidelines, and recommendations. 2. Each Party shall ensure that its import checks are based on the risks associated with importations and are carried out without unjustifiable delay. 3. Each Party has the right to conduct import checks to assess compliance with its sanitary and phytosanitary measures. 4. A Party shall make available, on request of the other Party, information on its import procedures and its basis for determining the type and frequency of import checks, including the factors it considers to determine the risks associated with importations. 5. A Party may amend the frequency of its import checks as a result of an assessment of previous import checks or as a result of actions or discussions provided for in this Chapter. 6. Theimporting Party shall provide,on request of the other Party, information regarding the analytical methods, quality controls, sampling procedures, and facilities that the importing Party uses to test a good. The importing Party shall ensure that any testing is conducted using appropriate and validated methods under a quality assurance program in accordance with international laboratory standards. 7. The importing Party shall maintain physical or electronic documentation regarding the identification, collection, sampling, transportation, and storage of the test sample, and the analytical methods used on the test sample. 8. Each Party shall conduct import checks in a manner that preserves the integrity of the goods, except for the individual specimens or samples obtained pursuant to the requirements referred to in subparagraph 1(e) of Annex C of the SPS Agreement. 9. Theimporting Party shall ensure that its final decision on the action taken in response to a finding of non-compliance with the importing Party’s sanitary or phytosanitary measure is limited to what is reasonable and necessary in response to the non-compliance. 10. If the importing Party prohibits or restricts the importation of a good of the exporting Party on the basis of non-compliance of that good found during an import check, the importing Party shall provide a notification about the non-compliance to the competent authority of the exporting Party, the importer, or its agent. 11. When the importing Party provides a notification pursuant to paragraph 10, the Party shall: (a) include in its notification: (i) the reason for the prohibition or restriction; (ii) the legal basis or authorisation for the action; and (iii) information on the status of the affected goods and, if appropriate, on theirdisposition; (b) transmit the notification as soon as possible and no later than seven days after the date of the decision to prohibit or restrict, unless the goods are seized by a customs administration; and (c) if the notification has not already been provided through another channel, transmit the notification by electronic means, if practicable. 12. Theimporting Party that prohibits or restricts the importation of goodsof the other Party due to a non-compliance shall provide an opportunity for a review of the decision and consider any relevant information submitted to assist in the review. The request for the review and the information should be submitted to the importing Party within a reasonable period of time. 13. If the importing Party determines that there is a significant, sustained,or recurring pattern of non-compliance with a sanitary or phytosanitary measure, the importing Party shall notify the exporting Party of the non-compliance. On request, the Parties shall discuss the non-compliance and the appropriate remedial actions that can be taken to avoid future non-compliance. 14. On request, the importing Party shall provide to the exporting Party available information on goods from the exporting Party that were found not to comply with a sanitary or phytosanitary measure of the importing Party. 15. Nothing in this Chapter prevents theimporting Party from disposing of goods which are found to have any infectious pathogen, pest, or pests that, if urgent action is not taken, can spread and cause damage to human, animal, or plant life or health in the Party’s territory. Article 5.11: Audits 1. The importing Party shall have the right, subject to this Article, to audit the exporting Party’s competent authorities and associated or designated inspection systems. 2. An audit shall be systems-based and conducted to assess the effectiveness of the regulatory controls of the competent authorities of the exporting Party to provide the required assurances and meet the sanitary and phytosanitary measures of the importing Party. The audit may include an assessment of the competent authorities’ control programmes, and, if appropriate, on-site inspections of facilities. 3. In undertaking an audit, each Party shall take into account the relevant decisions and guidance of the WTO SPS Committee and international standards, guidelines, and recommendations. 4. The Parties shall establish the conditions for carrying out an audit, which may include on-site, remote, or virtual options for any part of the audit. 5. Prior to the commencement of an audit, the Parties shall discuss the rationale, objectives, and scope of the audit, and the criteria or requirements against which the audited Party will be assessed. At that time, the Parties shall also decide the itinerary and procedure for conducting the audit. 6. Unless the Parties decide otherwise, the auditing Party shall hold an exit meeting at the end of the audit that includes an opportunity for the competent authority of the audited Party to raise questions or seek clarification on the preliminary findings and observations provided at the meeting. 7. The auditing Party shall provide the audited Party the draft written audit report, including its initial findings. The auditing Party shall provide the audited Party the opportunity to comment on the accuracy of the draft audit report and shall take any such comments into account before making its conclusions. The auditing Party shall provide a report setting out its conclusions in writing to the audited Party within a reasonable period of time. 8. In undertaking an audit in cases in which the importing Party has recognised equivalence on a systems-wide basis, the importing Party shall: (a) conduct the audit to verify that the audited Party’s system achieves an equivalent outcome to the appropriate level of sanitary or phytosanitary protection of the importing Party; and (b) audit against the exporting Party’s implementation of the equivalent oversight and control system. 9. A decision or action taken by the auditing Party as a result of the audit shall be supported by objective evidence and available data that can be verified, taking into account the auditing Party’s knowledge of, relevant experience with, and confidence in, the audited Party’s regulatory controls. The auditing Party shall, on request of the audited Party, provide that evidence and data to the audited Party for verification. 10. The costs incurred by the auditing Party shall be borne by the auditing Party unless the Parties decide otherwise. 11. Each Party shall ensure that procedures are in place to prevent the disclosure of confidential information that is acquired during the audit process. Article 5.12: Certification 1. The Parties recognise that assurances with respect to sanitary or phytosanitary requirements may be provided through certificates or other means. 2. Each Party shall ensure that at least one of the following conditions is satisfied before imposing a sanitary or phytosanitary certification requirement: (a) the certification requirement is based on the relevant international standards; or (b) the certification requirement is appropriate to the circumstances of risks to human, animal, or plant life or health.1 3. In applying certification requirements, theimporting Party shall take into account the relevant decisions and guidance of the WTO SPS Committee and international standards, guidelines, and recommendations. 1 For greater certainty,a certification requirement that does not constitute a sanitary orphytosanitarymeasure, such as a requirement concerning thequality ofa productor informationrelatingto consumer preferences, is not a certification requirement that is appropriate tothecircumstances of a riskto human, animal, orplant lifeor health. 4. Theimporting Party shall limit attestations and information it requires on the certificates to essential information that is necessary to provide assurances to the importing Party that its appropriate level of sanitary or phytosanitary protection has been met. 5. Theimporting Party shall provide to the exporting Party, on request, the rationale for any attestations or information that the importing Party requires to be included on a certificate. 6. The Parties may decide to work cooperatively to develop model certificates to accompany specific goods traded between the Parties. 7. The Parties shall promote the implementation of electronic certification and other technologies to facilitate trade. Article 5.13: Technical Consultations forIssue Resolution 1. A Party (requesting Party) may initiate technical consultations for issue resolution with the other Party (responding Party) to discuss any matter arising under this Chapter that may adversely affect its trade by delivering a written request to the Contact Point of the responding Party. The request shall identify the reason for the request, including a description of the requesting Party’s concerns about the matter. 2. The Parties shall meet within 30 days of the responding Party’s receipt of the request, with the aim of resolving the matter cooperatively within 180 days of the receipt of therequest if possible. This meeting, and any subsequent meetings, may be held virtually or in-person as decided by the Parties. 3. The Parties shall ensure the appropriate involvement of relevant trade officials and competent authorities in meetings held pursuant to this Article. 4. A Party shall not have recourse to dispute settlement under Chapter 24(Dispute Settlement) for a matter arising under this Chapter without first seeking to resolve the matter through technical consultations for issue resolution in accordance with this Article. 5. Recognising that Parties may decide to engage in consultations pursuant to this Article for any length of time, the requesting Party may cease technical consultations under this Article and have recourse to dispute settlement under Chapter 24 (Dispute Settlement) following the meeting referred to in paragraph 2 or if the meeting is not held. Article 5.14: Committee on Sanitary and Phytosanitary Measures 1. For the purposes of theeffective implementation and operation of this Chapter, the Parties hereby establish a Committee on Sanitary and Phytosanitary Measures (SPS Committee), composed of government representatives of each Party responsible for sanitary and phytosanitary matters. 2. Thefunctions of theSPS Committee are to: (a) enhance each Party’s implementation of this Chapter; (b) consider sanitary and phytosanitary matters of mutual interest; and (c) enhance communication and cooperation on sanitary and phytosanitary matters. 3. The SPS Committee shall establish its terms of reference at its first meeting and may revise those terms of reference as needed. 4. The SPS Committee shall endeavour to identify, prioritise, manage, and resolve any issue that may arise concerning a sanitary or phytosanitary measure that may have a significant effect on trade between the Parties with a view to facilitating a mutually acceptable solution including for the purposes of issue avoidance and resolution. 5. TheSPS Committee may: (a) enhance mutual understanding of each Party’s sanitary and phytosanitary measures and the regulatory processes that relate to those measures; (b) based on matters of mutual interest, establish and, as appropriate, determine the scope and mandate of technical working groups in areas such as animal health, plant health, fish and seafood, and food safety, taking into account existing mechanisms, to undertake work related to the implementation of this Chapter; and (c) facilitate the identification and discussion, at an appropriately early stage, of proposed sanitary or phytosanitary measures or revisions to existing sanitary or phytosanitary measures that may have a significant effect on trade between the Parties, including for the purposes of issue avoidance and resolution. 6. Further to subparagraph 5(b), any technical working group shall be composed of government representatives of each Party responsible for the matter, and shall establish terms of reference at the first meeting and may revise those terms of reference as needed. 7. The SPS Committee shall provide a forum to explore opportunities for further cooperation, collaboration, and information exchange between the Parties on sanitary and phytosanitary measures of mutual interest, consistent with this Chapter and subject to the availability of appropriate resources. These opportunities may include trade facilitation initiatives, capacity building, and technical assistance on sanitary and phytosanitary measures. 8. Further to paragraph 7,the Parties: (a) may jointly identify work on sanitary and phytosanitary measures with the goal of eliminating unnecessary obstacles to trade between the Parties; (b) shall endeavour to enhance regulatory cooperation for goods subject to a sanitary or phytosanitary measure; (c) shall endeavour to avoid unnecessary duplication of work covered by bilateral, regional, or multilateral work programmes; or (d) shall prioritise any activities related to the implementation of this Chapter. 9. TheSPS Committee shall meet within one year of the date of entry into force of this Agreement and once per year thereafter unless the Parties decide otherwise. 10. The SPS Committee shall report annually to the Joint Committee on the implementation of this Chapter. Article 5.15: Competent Authorities and Contact Points 1. Each Party shall provide to the other Party a list of its competent authorities and a written description of the sanitary and phytosanitary responsibilities of its competent authorities. 2. Each Party shall designate and notify a contact point for matters arising under this Chapter. 3. Each Party shall promptly inform the other Party of any change to its competent authorities or contact point. CHAPTER 6 TECHNICAL BARRIERS TO TRADE Article 6.1: Definitions 1. Annex 1 to the TBT Agreement, including the chapeau and explanatory notes, are incorporated into and made part of this Chapter, mutatis mutandis. 2. For the purposes of this Chapter: international standard means a standard that is consistent with the TBT Committee Decision on International Standards; mutual recognition agreement means an intergovernmental agreement that specifies the conditions by which a Party will recognise or accept the conformity assessment results that are produced by the other Party’s conformity assessment bodies that demonstrate fulfillment of appropriate standards or technical regulations; mutual recognition arrangement ormultilateral recognition arrangement means an international or regional arrangement among accreditation bodies in the territory of either Party, in which the accreditation bodies, on the basis of peer evaluation, accept the results of accredited conformity assessment bodies; national standard means a voluntary standard that is developed or adopted by a national standards body;1 TBT Agreement means the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement; and TBT Committee Decision on International Standards means Annex 2 to Part 1 (Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex 3 of the Agreement) in the Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade Since 1 January 1995 (G/TBT/1/Rev.15), as may be revised. Article 6.2: Objective The objective of this Chapter is to facilitate trade in goods, including by eliminating unnecessary technical barriers to trade, and enhancing transparency and bilateral cooperation. Article 6.3: Scope 1. ThisChapter applies to the preparation, adoption and application of standards, technical regulations, and conformity assessment procedures, including any amendments, of central level of government bodies, which may affect trade in goods between the Parties. 1 For greater certainty,national standard refers to, for Canada, aNational Standard ofCanada, and forIndonesia, a Standar Nasional Indonesia. 2. Notwithstanding paragraph 1, this Chapter does not apply to: (a) purchasing specifications prepared by governmental bodies for production or consumption requirements of governmental bodies; or (b) sanitary or phytosanitary measures covered by Chapter 5(Sanitary and Phytosanitary Measures). Article 6.4: Affirmation and Incorporation of the TBT Agreement 1. Articles 2, 3, 4, 5, 6, 7, 8, and 9 and Annex 3 of the TBT Agreement, as amended, are incorporated into and made part of this Agreement. 2. The Parties affirm theirexisting right and obligationswith respect to each other under Article 1, Articles 10 to 15, and Annex 2 of the TBT Agreement. Article 6.5: International Standards, Guides, and Recommendations 1. The Parties recognize the important role that international standards, guides, and recommendations can play in the harmonisation of technical regulations, conformity assessment procedures and national standards, and in reducing unnecessary barriers to trade. 2. To determine whether there is an international standard, guide, or recommendation within the meaning of Articles 2 and 5 and Annex 3 of the TBT Agreement, each Party shall take into account the principles set out in the TBT Committee Decision on International Standards. Article 6.6: National Standards 1. With respect to the preparation, adoption, and application of national standards, each Party shall ensure that its central government standardising body accepts and complies with Annex 3 of the TBT Agreement. 2. If modifications to the contents or structure of the relevant international standards are necessary in developing a Party’s national standard, that Party shall, on request of the other Party, encourage its central government standardising body to provide information on any differences in the content and structure of the national standard and the reason for those differences. Any fees charged for this service by the central government standardising body shall, apart from the real cost of delivery, be the same for foreign and domestic persons. 3. The Parties shall encourage cooperation between their central government standardising bodies, in areas such as: (a) exchanging information relating to national standards and national standard setting procedures; and (b) international standardising activities in areas of mutual interest. Article 6.7: Technical Regulations 1. Each Party shall consider conducting an appropriate assessment concerning any technical regulations it proposes to adopt. That assessment may include, among other things, a regulatory impact analysis of the potential impacts of the technical regulation. 2. Each Partyshall use relevant international standards or the relevant parts of them, to the extent provided in Article 2.4 of the TBT Agreement. If a Party has not used or has significantly deviated from a relevant international standard as a basis for a technical regulation, that Party shall, on request from the other Party, explain why it has not used the international standard or has significantly deviated from the international standard. 3. Further to paragraph 2, when developing a technical regulation or conformity assessment procedure, each Party shall consider available alternatives that would be effective and appropriate to fulfil the Party’s legitimate objectives pursued by a technical regulation or conformity assessment procedure. 4. Further to Article 2.7 of the TBT Agreement, ifaParty does not accept a technical regulation of the other Party as equivalent to its own, it shall, on request of the other Party, explain the reasons for its decision within a reasonable period of time. 5. In implementing Article 2.8of the TBT Agreement, if a Party does not specify its technical regulations based on product requirements in terms of performance rather than design or descriptive characteristics, the Party shall, on request of the other Party, provide the reasons for its decision. 6. For the purposes of applying Articles 2.12 and 5.9 of theTBTAgreement, the term “reasonable interval” shall be understood to mean normally a period of not less than six months, except when this would be ineffective in fulfilling the legitimate objectives pursued by the technical regulation or conformity assessment procedure.2 7. Each Party shall uniformly and consistently apply its technical regulations that are prepared and adopted by its central government bodies to its whole territory. For greater certainty, nothing in this paragraph shall be construed to prevent local government bodies from preparing, adopting, and applying technical regulations in a manner consistent with the provisions of the TBT Agreement. Article 6.8: Conformity Assessment Procedures 1. The Parties shall encourage their respective accreditation and conformity assessment bodies to participate in cooperation arrangements that promote the mutual acceptance of conformity assessment results. 2. Each Party shall, subject to its laws and regulations, accept the results of conformity assessment procedures conducted by conformity assessment bodies located in the territory of the other Party under conditions no less favourable than those conditions applied to the acceptance of the results of conformity assessment procedures conducted by conformity assessment bodies in its own territory. 2 For greater certainty,a Party may decide to set an interval of less than sixmonths between thepublication of a measure and its entry into force in certain circumstances, including those inwhich themeasureis trade facilitative oris addressing an urgentproblemofsafety, health, environmental protection or national security. 3. Each Party shall, subject to its laws and regulations, accord to conformity assessment bodies located in the territory of the other Party treatment under conditions no less favourable than those it applies to conformity assessment bodies located in its own territory. 4. Each Party is encouraged torecognisethe competence of an accreditation body established in the territory of the other Party that is a signatory to a mutual recognition arrangement or multilateral recognition arrangement to accredit conformity assessment bodies. 5. Each Party shall ensure that its central government bodies, when evaluating a conformity assessment body located in the territory of the other Party for the purposes of designation or accreditation as appropriate, act as expeditiously as possible under conditions no less favourable than those it applies when evaluating a conformity assessment body located in its own territory. 6. Each Party shall allow a reasonable interval between the publication of designation or accreditation requirements established by its central government bodies and their entry into force, in order to allow time for applicants of the other Party to adapt to the requirements. 7. If a Party requires conformity assessment as a positive assurance that a product conforms with a technical regulation or standard, it shall, subject to its laws and regulations, accept the results of conformity assessment, notwithstanding the conformity assessment body using a particular testing facility, provided that the testing facility is accredited and approved in the Party’s territory, when required. 8. Nothing in this Article shall prevent a Party from requesting that conformity assessment procedures in relation to specific products be performed by specified government authorities of the Party. In those cases, the Party conducting the conformity assessment procedures shall: (a) limit the fees it imposes for conformity assessment procedures on products from the other Party to the approximate cost of services rendered; and (b) make the fees forconformity assessment procedures publicly available. 9. The Parties recognise that the choice of conformity assessment procedures in relation to a specific product covered by a technical regulation or standard may include an evaluation of the risks involved, the need to adopt procedures to address those risks, relevant scientific and technical information, incidence of non-compliant products, and possible alternative approaches for establishing that the technical regulation or standard has been met. 10. The Parties recognise that a broad range of mechanisms exist to facilitate the acceptance of the results of conformity assessment procedures conducted in the other Party. Thosemechanisms may include: (a) promotion of mutual recognition of conformity assessment procedures conducted by accredited conformity assessment bodies located in the territory of the other Party, including through mutual or multilateral recognition; (b) cooperativearrangements between accreditation bodies or between conformity assessment bodies; (c) the designation of conformity assessment bodies in the other Party; (d) unilateral recognition by a Party of results of conformity assessment procedures conducted in the other Party; and (e) a supplier’s declaration of conformity, as appropriate. Article 6.9: Transparency 1. The Parties recognize the importance of the provisions relating to transparency in the TBT Agreement. For the purposes of determining whether a proposed technical regulation or conformity assessment procedure may have a significant effect on trade and should be notified in accordance with the TBT Agreement and this Chapter, a Party shall take into account the relevant guidance in the Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade Since 1 January 1995 (G/TBT/1/Rev.15), as may be revised. 2. The Parties acknowledge the importance of transparency in decision-making, including giving a meaningful opportunity to provide comments on proposed technical regulations and conformity assessment procedures. Further to Article 2.9 and Article 5.6 of the TBT Agreement, when a Party notifies its proposed technical regulations and conformity assessment procedures that may have a significant effect on trade, it shall: (a) include in the notification a statement describing the objective of the proposed technical regulation or conformity assessment procedure and the rationale for the approach the Party is proposing; (b) transmit the notification electronically to the other Party through the enquiry point the Party has established under Article 10 of the TBT Agreement at the same time as it notifies the WTO Secretariat; (c) allow for comments after the notification referred to in (b) and consider them, as appropriate, in the development of the proposed technical regulation or conformity assessment procedure; and (d) if practicable, accept a written request from the other Party to discuss written comments that the other Party has submitted and ensure that appropriate officials participate in the discussions, such as from the competent authority that has proposed the technical regulation or conformity assessment procedure.3 3. Notwithstanding paragraph 2, if urgent problems of safety, health, environmental protection, or national security arise or threaten to arise for a Party, that Party shall notify the technical regulation or conformity assessment procedure that is in accordance with the technical content of relevant international standards, guides, or recommendations, using the procedures established in Article 2.10 or Article 5.7 of the TBT Agreement. 3 For greater certainty,circumstances in which discussions willnot be deemed practicable includeifthe Party requesting discussions has failed to submit its comments in a timelymanner, orif discussionswould need to takeplace after the deadline to submitwritten comments has passed. 4. Each Party shall allow a period of at least 60 days following its notification to the WTO Secretariat of proposed technical regulations and conformity assessment procedures for the other Party to provide written comments, except where urgent problems of safety, health, environmental protection, or national security arise or threaten to arise. If practicable, a Party shall consider a reasonable request to extend the comment period. 5. If a Party has adopted a technical regulation or conformity assessment procedure that may have a significant effect on trade, the Party shall publish, within areasonable period of time and preferably by electronic means, information that would help the other Party understand the technical regulation or conformity assessment procedure. The information may include an explanation of how the technical regulation or conformity assessment procedure achieves the Party’s objectives and the date by which compliance with the technical regulation or conformity assessment procedure is required. 6. Each Party may consider methods to provide additional transparency in the development of technical regulations, standards, and conformity assessment procedures. 7. Each Party shall publish online and make freely accessible all proposed and final technical regulations and mandatory conformity assessment procedures, except with respect to any standards that: (a) are developed by government or non-governmental organisations; and (b) have been incorporated by reference into a technical regulation or conformity assessment procedure. 8. If a Party detains, at a point of entry, a product that is imported from the territory of the other Party on the basis that the product may not conform with a technical regulation, it shall notify, as soon as possible, the importer of the reasons for the detention of the good. Article 6.10: Cooperation 1. The Parties shall, to the extent possible, strengthen their cooperation in the field of standards, technical regulations, and conformity assessment procedures. 2. The Parties recognise that cooperation can support greater regulatory alignment and eliminate unnecessary technical barriers to trade between the Parties. 3. Each Party shall, on request of the other Party, give positive consideration within available resource levels to proposals for cooperation on matters of mutual interest on standards, technical regulations, and conformity assessment procedures. 4. That cooperation, which shall be decided by the Parties, may include: (a) the provision of advice, technical assistance, or capacity building relating to the development and application of standards, technical regulations, and conformity assessment procedures; (b) exchanging information on regulatory approaches and practices through their respective contact points; and (c) enhancing cooperation: (i) in areas of mutual interest in the work of relevant regional and international bodies relating to the development and application of standards and conformity assessment procedures, such as enhancing participation in the frameworks for mutual recognition developed by relevant regional and international bodies; (ii) in the development and amendment of standards, technical regulations, and conformity assessment procedures; (iii) as appropriate, to ensure that technical regulations and conformity assessment procedures are based on international standards or the relevant parts of them and do not create unnecessary obstacles to trade between the Parties; (iv) increasing the mutual understanding of the Parties’respective systems and mechanisms for standards, technical regulations, and conformity assessment procedures; and (v) facilitating trade by promoting the use of good regulatory practices. 5. The Parties recognisethat there are variety of forums for cooperation under this Agreement, and that the Parties may utilise the mechanisms established under Chapter 19 (Economic and Technical Cooperation)to promote cooperation and capacity building. Article 6.11: Information Exchange andTechnical Discussions 1. The Parties recognise that technical discussions and information exchange can serve an important function in reaching mutually satisfactory solutions to trade concerns between them, by promoting cooperation and consultation, including with respect to relevant technical information. Accordingly, if a Party considers the need to resolve an issue that arises under this Chapter, it may make a written request to the other Party to engage in technical discussions. The Party receiving the request shall respond in writing within a reasonable period of time. 2. The Parties shall enter into technical discussions within 60 days of a Party’s receipt of a request made under paragraph 1, unless otherwise decided by the Parties, with a view to reaching a mutually satisfactory resolution of the matter that is the subject of the request. 3. If the Party requesting technical discussions identifies the matter as urgent, the Parties shall endeavour to discuss the matter as soon as possible. 4. The Party making a request under paragraph 1 shall transmit the request to the contact point of the other Party. Technical discussions may be conducted via any means determined by the Parties. 5. A Party shall explain, on the request of the other Party, the reasons for its decision not to: (a) accredit, approve, license, or otherwise recognisea conformity assessment body; (b) recognise the results from a conformity assessment body that is accredited by a signatory to a mutual recognition agreement or a mutual or multilateral recognition arrangement; (c) accept the results of a conformity assessment procedure conducted in the territory of the other Party; or (d) continue negotiations for a mutual recognition agreement or a mutual recognition arrangement. 6. Unless the Parties decide otherwise, any discussions or information exchanged under this Article, other than request made under paragraph 1, shall be kept confidential and bewithout any prejudice to the Parties’ rights and obligations under this Agreement and the WTO Agreement. Article 6.12: Committee on Technical Barriers to Trade 1. The Parties hereby establish a Committee on Technical Barriers to Trade (the Committee), consisting of government representatives, including the respective contact points, of each Party. 2. The Committee shall meet annually unless otherwise decided by the Parties. Meetings of the Committee may be conducted in person or by any other means as decided by the Parties. 3. The Committee’s functions may include: (a) monitoring and identifying ways to strengthen the implementation and operation of this Chapter; (b) encouraging cooperation between the Parties in matters that pertain to this Chapter, including the development, review, or modification of standards, technical regulations, and conformity assessment procedures and coordinating cooperation pursuant to Article 6.10 (Cooperation); (c) facilitating any technical discussions including matters that arise under Article 6.11 (Information Exchange and Technical Discussions); (d) deciding on priority areas of mutual interest for future work under this Chapter; (e) reviewing this Chapter and identifying any potential amendments to or interpretations of this Chapter for referral to the Joint Committee established under Article 23.1 (Administrative and Institutional Provisions – Establishment of the Joint Committee), including in light of any developments under the TBT Agreement, and reporting to the Joint Committee; and (f) carrying out other functions as may be delegated by the Joint Committee. 4. The Committee may discuss,if decided by the Parties,other matters related to technical barriers to trade including technical regulations, standards, and conformity assessment procedures by local government bodies. 5. On request from a Party that the Committee discuss a matter related to a technical regulation, standard, or conformity assessment procedure of a local government body, the other Party shall accept the request, and within its capacity, may take steps that could lead to the resolution of the matter. Article 6.13: Contact Points Each Party shall, within 30 days of the date of entry into force of this Agreement, designate a contact point responsible for matters arising under this Chapter and for coordinating the implementation of this Chapter, and notify the other Party of the contact details of the relevant official or officials in that contact point, including the telephone number, facsimile number, email address, and any other relevant details. Each Party shall promptly notify the other Party of any change to the contact point or the details of the relevant official. Each Party’s contact point shall: (a) facilitate the exchange of information between the Parties on standards, technical regulations, and conformity assessment procedures in response to all reasonable requests for that information from a Party; (b) communicate with the other Party’s contact point, including facilitating discussions, requests, and the timely exchange of information on matters arising under this Chapter; (c) communicate with and coordinate the involvement of relevant government agencies, including regulatory authorities, in its territory on relevant matters pertaining to this Chapter; and (d) carry out any additional responsibilities specified by the Committee. CHAPTER 7 TRADE REMEDIES Section A: Anti-Dumping and Countervailing Measures Article 7.1: General Provisions 1. (a) Each Party retains its rights and obligations under Article VI of GATT 1994, the AD Agreement and the SCM Agreement, including with respect to the resolution of any disputes in respect thereof. (b) This Agreement does not impose rights or obligations on a Party with respect to anti-dumping or countervailing measures. A Party shall not have recourse to dispute settlement under this Agreement for a matter arising under this Section. 2. Chapter 3(Rules of Origin and Origin Procedures) under this Agreement shall not apply to the application of anti-dumping and countervailing measures of a Party to originating goods of the other Party. Article 7.2: Investigation Procedures 1. The Parties recognise the right of the Parties to apply trade remedy measures consistent with Article VI of GATT 1994, the AD Agreement and the SCM Agreement, and further recognise that the practices1 stipulated in the following paragraphs of this Article promotethe goals of transparency and due process in trade remedy proceedings. 2. Upon receipt by a Party’s investigating authority of a properly documented anti.dumping or countervailing duty application in respect of imports from the other Party, and before initiating an investigation, that Party provides written notification to the other Party of its receipt of the application and affords the other Party a meeting or other similar opportunity regarding the application, consistent with that Party’s domestic law. 3. In any proceeding in which a Party’s investigating authorities determine to conduct an in-person verification of information that is provided by a respondent2 and that is pertinent to the calculation of anti-dumping duty margins or the amount of a countervailable subsidy, the investigating authorities promptly notify each respondent of their intent, and: (a) provide to each respondent at least 10 working days advance notice of the dates on which the authorities intend to conduct an in-person verification of the information; 1 The practices included inthis Article donotconstitute a comprehensive list of practices relating to antidumping and countervailing duty proceedings. No inference shallbe drawnfromthe inclusionor exclusion of aparticular aspect of such proceedings in this list. 2 For the purposes of this paragraph, “respondent” means a producer, manufacturer, exporter, importer, and,where appropriate, a government orgovernment entity, that is requiredbya Party’s investigatingauthoritiesto respond to an antidumping or countervailing duty questionnaire. (b) at least 5 working days prior to an in-person verification, provide to the respondent a document that sets out the topics the respondent should be prepared to address during the verification and that describes the types of supporting documentation to be made available for review; and (c) after an in-person verification is completed, and subject to the protection of confidential information3, issue a written report that describes the methods and procedures followed in carrying out the verification and the extent to which the information provided by the respondent was supported by the documents reviewed during the verification. The report is made available to interested parties in sufficient time for the parties to defend their interests. 4. If, in an anti-dumping or countervailing duty action that involves imports from the other Party a Party’s investigating authorities determine that a timely response to a request for information does not comply with the request, the investigating authorities inform the interested party that submitted the response of the nature of the deficiency and, to the extent practicable in light of time limits established to complete the anti.dumping or countervailing duty action, provide that interested party with an opportunity to remedy or explain the deficiency. If that interested party submits further information in response to that deficiency and the investigating authorities find that the response is not satisfactory, or that the response is not submitted within the applicable time limits, and if the investigating authorities disregard all or part of the original and subsequent responses, the investigating authorities explain in the determination or other written document the reasons for disregarding the information. 5. Before a final determination is made, a Party’s investigating authorities inform all interested parties of the essential facts that form the basis of the decision whether to apply definitive measures. Subject to the protection of confidential information, the investigating authorities may use any reasonable means to disclose the essential facts, which includes a report summarizing the data in the record that contains sufficient detail to permit interested parties a reasonable understanding of the substance of the information on the record, a draft or preliminary determination, or some combination of those reports or determinations, to provide interested parties an opportunity to respond to the disclosure of essential facts. 6. The disclosure of theessential facts pursuant to paragraph 5is made in accordance with Articles 2, 3, 6.5 and 12 of the AD Agreement and Articles 4.6, 12.4, 14, 15, and 22 of the SCM Agreement. Article 7.3: Initiation of Review A review under Article 11.3 of theAD Agreement or Article 21.3 of the SCM Agreement shall be initiated at an appropriate time during the final year of the period of application of the anti-dumping and countervailing duties, as defined in each Party’s domestic laws and regulations. 3 For the purposes of this Article,“confidential information” includes information which is providedon a confidential basis and which is by its natureconfidential,for example, becauseits disclosurewouldbe of significant competitive advantage to a competitor or becauseits disclosure wouldhave a significantly adverseeffect upon aperson supplying the information orupon apersonfrom whom that person acquired the information. Section B: Bilateral Emergency Actions Article 7.4: Definitions For the purposes of this Section: competent investigating authority means: (a) in the case of Canada, the Canadian International Trade Tribunal, or its successor notified to the other Party through diplomatic channels; and (b) in the case of Indonesia, the Indonesian Safeguards Committee, or its successor notified to the other Party through diplomatic channels; domestic industry means, with respect to an imported good, the producers as a whole of the like or directly competitive good operating in the territory of a Party or those whose collective production of the like or directly competitive good constitutes a major proportion of the total domestic production of such good; emergency action means an emergency action described in Article 7.5; serious injury means a significant overall impairment of a domestic industry; substantial cause means a cause that is important and not less important than any other cause; threat of serious injury means serious injury that is clearly imminent based on facts and not based on allegation, conjecture or remote possibility; and transition period means the 10-year period beginning on the entry into force of this Agreement, except where the tariff elimination for the good against which the action is taken occurs over a longer period of time, in which case the transition period is the period of thestaged tariff elimination for that good. Article 7.5: Imposition of a Bilateral Emergency Action 1. A Party may adopt an emergency action described in paragraph 2, if as a result of the reduction or elimination of a duty pursuant to this Agreement, an originating good is being imported into the Party’s territory in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to constitutea substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good. 2. If the conditions set out in paragraph 1 and Articles 7.6 and 7.7 are met, a Party may to the extent necessary to prevent or remedy serious injury, or threat thereof, and to facilitate adjustment: (a) suspend the further reduction of a rate of duty provided for under this Agreement on the good; or (b) increase the rate of duty on the good to a level not exceeding the lesser of: (i) the most-favoured-nation (MFN) rate of duty in effect at the time the emergency action is taken, and (ii) the base rate of duty as provided in its schedule to Annex 2-A (Tariff Commitments). Article 7.6: Notification and Discussions 1. A Party shall, in writing, promptly notify and invite for discussions the other Party in connection with: (a) initiating an emergency action proceeding; (b) making a finding of serious injury, or threat thereof, under theconditions set out in Article 7.5(1); and (c) applying an emergency action. 2. A Party shall without delay, provide to the other Party a copy of the public version of any notice or any report by a competent investigating authority issued in connection with matters notified pursuant to paragraph 1. 3. If a Party accepts an invitation for discussions made pursuant to paragraph 1, the Parties shall enter into discussions to review the notification under paragraph 1 or the public version of a document issued by a competent investigating authority in connection with the emergency action proceeding. 4. An emergency action shall be initiated no later than 1 year after the date the proceeding is instituted. Article 7.7: Standards for Emergency Actions 1. A Party shall maintain an emergency action only for such period of time as may be necessary to prevent or remedy serious injury and to facilitate adjustment. 2. That period shall not exceed two years, except that the period may be extended by up to one year if the competent authority of the Party that applies the measure determines, in conformity with the procedures set out in Article 7.8 (Administration of Emergency Action Proceedings), that the emergency action continues to be necessary to prevent or remedy serious injury and to facilitate adjustment. 3. A Party shall not adopt or maintain an emergency action beyond the expiration of the transition period. 4. In order to facilitate adjustment in a situation where the expected duration of an emergency action is over one year, the Party that applies the measure shall progressively liberalise it at regular intervals during the period of application. 5. On the termination of an emergency action, the Party that applied the measure shall apply the rate of customs duty set out in theParty’s Schedule to Annex 2-A (Tariff Commitments) as if that Party had never applied the emergency action. 6. A Party shall not apply an emergency action more than once on the same good. Article 7.8: Administration of Emergency Action Proceedings 1. Each Party shall ensure the consistent, impartial, and reasonable administration of its laws, regulations, decisions, and rulings governing emergency action proceedings. 2. Each Party shall entrust determinations of serious injury, or threat thereof, in an emergency action proceeding to a competent investigating authority. Each Party shall: (a) ensure that those determinations are subject to review by judicial or administrative tribunals, to the extent provided by domestic law; (b) ensure that negative injury determinations are not modified, except through a review referred to in subparagraph (a); and (c) provide its competent investigating authority with the necessary resources to enable it to fulfill its duties. 3. Each Party shall adopt or maintain equitable, timely, transparent, and effective procedures for emergency action proceedings in accordance with the requirements set out in paragraph 4. 4. A Party shall apply an emergency action only following an investigation by the Party’s competent investigating authority in accordance with Articles 3 and 4.2 of the Safeguards Agreement. To this end, Articles 3 and 4.2 of the Safeguards Agreement are incorporated into and made part of this Agreement. Article 7.9: Compensation 1. A Party applying an emergency action shall, after consultations with the other Party against whose good the emergency action is applied, provide mutually agreed trade liberalising compensation in the form of concessions that have substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the emergency action. The Party shall provide an opportunity for those consultations no later than 30 days after the application of the emergency action. 2. If the consultations under paragraph 1 do not result in an agreement on trade liberalising compensation within 30 days, the Party against whose good the emergency action is applied may suspend the application of substantially equivalent concessions to the trade of the Party applying the emergency action. 3. A Party against whose good the emergency action is applied shall notify the Party applying the emergency action in writing at least 30 days before it suspends concessions in accordance with paragraph 2. 4. The obligation to provide compensation under paragraph 1 and the right to suspend concessions under paragraph 2 terminates on the termination of the emergency action. Section C: Global Safeguard Measures Article 7.10: General Provisions 1. (a) Each Party retains its rights and obligations under Article XIX of GATT 1994 and the Safeguards Agreement, including with respect to the resolution of any disputes in respect thereof. (b) This Agreement does not impose rights or obligations on a Party with respect to global safeguard measures. A Party shall not have recourse to dispute settlement under this Agreement for a matter arising under this Section. 2. Nothing in this Chapter shall prevent a Party from applying safeguard measures to an originating good of the other Party in accordance with Article XIX of the GATT 1994 and the Safeguards Agreement. 3. A Party shall not apply, with respect to the same good, at the same time: (a) a bilateral safeguard measure as provided in Article 7.5; and (b) a measure under Article XIX of GATT 1994 and the Safeguards Agreement. Article 7.11: Data Presentation and Information Without prejudice to the protection of confidential information, a Party’s competent investigating authority shall provide a presentation of the information on the record in sufficient detail to permit a reasonable understanding of its substance, in accordance with Article 3.2 of the Safeguards Agreement. Section D: Other Provisions Article 7.12: Cooperation On Trade Remedies Matters 1. The Parties hereby establish a Committee on Trade Remedies, composed of representatives at an appropriate level from relevant agencies of each Party who have responsibility for trade remedies matters, including anti-dumping, subsidies and countervailing measures, and safeguard issues. 2. The functions of the Committee, which operates on the basis of consensus in respect of all matters, are to: (a) enhance each Party’s knowledge and understanding of the other Party’s domestic trade remedy laws, policies, and practices; (b) oversee implementation of this Chapter; (c) improve cooperation between the Parties’ agencies having responsibility for trade remedies matters; (d) provide a forum for the Parties to exchange information on issues relating to trade remedies matters; (e) establish and oversee the development of educational programs related to the administration of trade remedies law for officials of both Parties; and (f) provide a forum for the Parties to discuss other relevant topics of mutual interest, including: (i) international issues relating to trade remedies, including those relating to international trade negotiations; and (ii) practices by the Parties’ investigating authorities in antidumping and countervailing duty investigations, such as the application of “facts available” and verification procedures. 3. Unless the Parties agreeotherwise, the Committee shall meet at least oncea year. CHAPTER 8 TRADE IN SERVICES Article 8.1: Definitions For the purposes of this Chapter: commercial presence means any type of business or professional establishment, including through: (a) the establishment, acquisition, or maintenance of an enterprise; or (b) the creation or maintenance of a branch or representative office of an enterprise, within the territory of a Party for the purpose of supplying a service; computer reservation system services means services provided by computerised systems that contain information about air carriers’ schedules, availability, fares, and fare rules, through which reservations can be made or tickets may be issued; enterprise means an enterprise as defined in Article 1.5 (Initial Provisions and General Definitions – General Definitions), or a branch of an enterprise; enterprise of a Party means an enterprise constituted or organised under the domestic law of a Party, or a branch of an enterprise located in the territory of a Party and carrying out business activities there;1 measures adopted or maintained by a Party means measures adopted or maintained by: (a) central, regional, or other governments, or authorities; or (b) non-governmental bodies in the exercise of powers delegated by central, regional, or other governments, or authorities; professional service means a service, the provision of which requires specialized post-secondary education, or equivalent training or experience, and for which the right to practice is granted or restricted by a Party, but does not include a service provided by a tradesperson, or a vessel or aircraft crew member; selling and marketing of air transport services means opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising, and distribution. These activities do not include the pricing of air transport services or the applicable conditions; service supplied in the exercise of governmental authority means, for a Party, any service that is supplied neither on a commercial basis nor in competition with one or more service suppliers; service supplier of a Party means a person of a Party that seeks to supply or supplies a service; 1 For greater certainty, the definition of “enterprise of a Party” is relevant to the interpretation of “service supplier of a Party” and Article 8.11(Denial ofBenefits). speciality air services means a specialized commercial operation using an aircraft whose primary purpose is not the transportation of goods or passengers, such as aerial fire-fighting, flight training, sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towing, and helicopter-lift for logging and construction, and other airborne agricultural, industrial, and inspection services; and trade in services or supply of a service means the supply of a service: (a) from the territory of a Party into the territory of the other Party; (b) in the territory of a Party to a person of the other Party; (c) by a service supplier of a Party, through commercial presence in the territory of the other Party; or (d) by a national of a Party in the territory of the other Party. Article 8.2: Scope 1. This Chapter applies to a measureadopted or maintained by a Party relating to trade in services by a service supplier of the other Party, including a measure relating to: (a) the production, distribution, marketing, sale,or delivery of a service;2 (b) the purchase or use of, or payment for, a service;3 (c) the access to and use of, in connection with the supply of a service, services which are required by a Party to be offered to the public generally; or (d) the presence in the Party’s territory of a service supplier of the other Party for the supply of a service. 2. This Chapter does not apply to: (a) government procurement; (b) a service supplied in the exercise of governmental authority; (c) a subsidyor grant provided by a Party ora state enterprise, including government-supported loans, guarantees, or insurance; and (d) a measure adopted or maintained by a Party to the extent that it iscovered by Chapter 10 (Financial Services). 2 For greater certainty,subparagraph (a) includes theproduction,distribution, marketing, sale, or delivery ofa service by electronic means. 3 For greater certainty,subparagraph (b) includes the purchase or useof, orpaymentfor, aservicebyelectronic means. 3. This Chapter does not apply to air services, including domestic and international air transportation services, whether scheduled or non-scheduled, or to related services in support of air services, other than the following: (a) aircraft repair or maintenance services during which an aircraft is withdrawn from service, excluding so-called line maintenance; (b) the selling and marketing of air transport services; (c) computer reservation system (CRS) services; and (d) specialty air services. 4. In the event of any inconsistency between this Agreement and a bilateral, plurilateral, or multilateral air services agreement to which both Parties are party, the air services agreement prevails in determining the rights and obligations of the Parties. 5. If the Parties have the same obligations under this Agreement and a bilateral, plurilateral, or multilateral air services agreement, a Party may invoke the dispute settlement procedures of this Agreement only after any dispute settlement procedures in the other agreement have been exhausted. 6. If the Annex on Air Transport Services of GATS is amended, the Parties shall jointly review any new definitions with a view to aligning the definitions in this Agreement with those definitions, as appropriate. 7. This Chapter does not impose anyobligation on aParty with respect to a national of the other Party who seeks access to its employment market or who is employed on a permanent basis in its territory, and does not confer any right on that national with respect to that access or employment. Article 8.3: National Treatment 1. Each Party shall accord to a service or service supplier of the other Party treatment no less favourable than that it accords, in like circumstances, to its own services and service suppliers. 2. The treatment to beaccorded by a Party under paragraph 1 means, with respect to a government other than at the central level, treatment accorded, in like circumstances, by that government to services or service suppliers of the Party of which it forms a part. 3. Whether treatment referred to in paragraph 1 is accorded “in like circumstances” depends on the totality of the circumstances. Such circumstances include whether the relevant treatment distinguishes between services or service suppliers on the basis of legitimate policy objectives, and, if relevant, competition in the economic or business sector concerned and the applicable legal and regulatory framework. 4. Paragraph 1 prohibitsdiscrimination based on nationality. A difference in treatment accorded to a service supplier or a service and a Party’s own service suppliers or services of its own service suppliers does not, in and of itself, establish discrimination based on nationality. Article 8.4: Most-Favoured-Nation Treatment 1. Each Party shall accord to a service or service supplier of the other Party treatment no less favourable than that it accords, in like circumstances, to services and service suppliers of a non-Party. 2. The treatment to beaccorded by a Party under paragraph 1 means, with respect to a government other than at the central level, treatment accorded, in like circumstances, by that government to services or service suppliers of the Party of which it forms a part. 3. Whether treatment referred to in paragraph 1 is accorded “in like circumstances” depends on the totality of the circumstances. Such circumstances include whether the relevant treatment distinguishes between services or service suppliers on the basis of legitimate policy objectives, and, ifrelevant, competition in the economic or business sector concerned and the applicable legal and regulatory framework. 4. Paragraph 1 prohibitsdiscrimination based on nationality. A difference in treatment accorded to a service supplier or a service and a Party’s own service suppliers or services of its own service suppliers does not, in and of itself, establish discrimination based on nationality. Article 8.5: Market Access4 A Party shall not adopt or maintain, either on the basis of a regional subdivision or on the basis of its entire territory, a measure that: (a) imposes a limitation on: (i) the number of service suppliers, whether in theform of a numerical quota, monopoly, exclusive service suppliers, or the requirement of an economic needs test; (ii) the total value of servicetransactions or assets in the form of a numerical quota or the requirement of an economic needs test; (iii) the total number of service operations or the total quantity of service output expressed in terms of a designated numerical unit in the form of a quota or the requirement of an economic needs test;5 or (iv) the total number of natural persons that may beemployed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of a numerical quota or the requirement of an economic needs test; or 4 For the purposes of aParty’s reservations pursuantto Article 8.7 (Reservations), a limitationon the participation of foreigncapital by way of a maximumpercentage limit on foreignshareholding orthe total valueofindividual or aggregate foreign investment isreserved against Article8.3 (National Treatment) and Article 13.6 (Investment – National Treatment). 5 Sub-subparagraph (a)(iii) does not cover a measureof a Party which limits inputs for thesupply of a service. (b) restricts or requires a specific type of legal entity or joint venture through which a service supplier may supply a service. Article 8.6: Formal Requirements Article 8.3 (National Treatment) does not prevent a Party from adopting or maintaining a measure that prescribes formal requirements in connection with the supply of a service, provided that theserequirements are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination. These measures include requirements: (a) to obtain a licence, registration, certification, or authorisation in order to supply a service or as a membership requirement of a particular profession, such as requiring membership in a professional organisation or participation in collective compensation funds for members of professional organisations; (b) for a service supplier to have a local agent for service or maintain a local address; (c) to speak a national language or hold a driver’s licence; or (d) that a service supplier: (i) post a bond or other form of financial security; (ii) establish or contribute to a trust account; (iii) maintain a particular type and amount of insurance; (iv) provide other similar guarantees; or (v) provide access to records. Article 8.7: Reservations 1. Article 8.3 (National Treatment), Article 8.4 (Most-Favoured-Nation Treatment), and Article 8.5 (Market Access) do not apply to: (a) any existing non-conforming measure, maintained in the territory of a Party at: (i) the central level of government, as set out by that Party in its Schedule to Annex I-A (Reservations for Existing Measures – ratchet); (ii) a regional level of government, as set out by that Party in its Schedule to Annex I-A (Reservations for Existing Measures – ratchet); or (iii) agovernment other than the central or regional levels; (b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or (c) an amendment to any non-conforming measure referred to in subparagraph (a) to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Article 8.3 (National Treatment), Article 8.4 (Most-Favoured-Nation Treatment), and Article 8.5 (Market Access). 2. Article 8.3 (National Treatment), Article 8.4 (Most-Favoured-Nation Treatment), and Article 8.5 (Market Access) do not apply to: (a) any existing non-conforming measure, maintained in the territory of a Party at: (i) the central level of government, as set out by that Party in its Schedule to Annex I-B (Reservations for Existing Measures – standstill); or (ii) aregional level of government, as set out by that Party in its Schedule to Annex I-B (Reservations for Existing Measures – standstill); (b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or (c) an amendment to any non-conforming measure referred to in subparagraph (a) to the extent that the amendment does not decrease the conformity of the measure as it existed at the date of entry into force of this Agreement with Article 8.3 (National Treatment), Article 8.4 (Most-Favoured-Nation Treatment), and Article 8.5 (Market Access). 3. Article 8.3 (National Treatment), Article 8.4 (Most-Favoured-Nation Treatment), and Article 8.5 (Market Access) do not apply to a measure that a Party adopts or maintains with respect to sectors, subsectors, or activities, as set out in its Schedule to Annex II(Reservations for Future Measures). 4. Notwithstanding subparagraph 2(c), a Party shall not withdraw aright or benefit from aservice supplier of the other Party, in reliance on which the service supplier has been granted an investment permit, through an amendment to a limitation on foreign equity participation that decreases the conformity of the measure as it existed immediately before the amendment. Article 8.8: Transparency 1. The Parties recognize that transparent measures governing trade in services are important in facilitating the ability of a service supplier of a Party to gain access to, and operate in, the other Party’s market. For this purpose, each Party shall promote regulatory transparency in trade in services. 2. Each Party shall,to the extent possible,maintain or establish appropriate mechanisms for responding to inquiries from interested persons regarding its laws and regulations that relate to the subject matter of this Chapter. 3. If a Party does not,in accordancewith Article 22.2 (Transparency, Anti-corruption, and Responsible Business Conduct – Publication), publish in advance and providean opportunity tocomment on its laws and regulations that relate to the subject matter of this Chapter, it shall, at therequest of the other Party, endeavour to provide in writing the reasons for not doing so. Article 8.9: Development and Administration of Measures 1. TheParties recognize the right of each Party to regulate and to introduce new regulations on the supply of services within itsterritory to achieve legitimate policy objectives. 2. Each Party shall ensure that ameasure of general application affecting trade in services is administered in a reasonable, objective, and impartial manner. 3. Additional commitments on the development and administration of measures are set out in Annex 8-A (Development and Administration of Measures). Article 8.10: Recognition 1. For the purposes of the fulfilment, in whole or in part, of a Party’s standards or criteria for the authorisation, licensing, or certification of a service supplier, and subject to the requirements of paragraph 4, a Party may recognise the education or experience obtained, requirements met, or licences or certifications granted in a particular country. This recognition, which may be achieved through harmonisation or otherwise, may be based upon an agreement or arrangement with the country concerned, or may be accorded autonomously. 2. If a Party recognises, autonomously,or by agreement or arrangement, the education or experience obtained, requirements met, or licences or certifications granted in the territory of a non-Party, Article 8.4 (Most-Favoured-Nation Treatment) is not to be construed to require the Party to accord recognition to the education or experience obtained, requirements met, or licences or certifications granted in the territory of the other Party. 3. Each Party shall endeavour to publish, by electronic means, relevant information, including appropriate descriptions, concerning an agreement or arrangement of the type referred to in paragraph 1 that the Party or relevant bodies or authorities in its territory have concluded. 4. A Party that is party to an agreement or arrangement of the type referred to in paragraph 1, whether existing or future, shall afford adequate opportunity for the other Party, if the other Party is interested, to negotiate accession to that agreement or arrangement or to negotiate a comparable one with that other Party. If a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that education, experience, licences, or certifications obtained, or requirements met in that other Party’s territory should be recognised. 5. A Party shall not accord recognition in a manner that would constitute a means of discrimination in the application of its standards or criteria for the authorisation, certification, or licensing of a service supplier, or a disguised restriction on trade in services. 6. Each Party shall endeavour to ensure that recognition does not require citizenship or any form of residency, or education, experience, or training in the territory of the host jurisdiction. 7. As set out in Annex 8-B (Professional Services), the Parties shall endeavour to facilitate trade in professional services including through the establishment of a Professional Services Working Group. Article 8.11: Denial of Benefits 1. A Party may deny the benefits of this Chapter to a service supplier of the other Party if the service supplier is an enterprise owned or controlled by a person of a non-Party, and the denying Party adopts or maintains a measure with respect to the non-Party or a person of the non-Party that prohibits transactions with that enterprise or that would be violated or circumvented if the benefits of this Chapter were accorded to that enterprise. 2. A Party may deny the benefits of this Chapter to a service supplier of the other Party if the service supplier is an enterprise owned or controlled by a person of a non-Party, or by a person of the denying Party, that has no substantial business activities in the territory of the other Party. Article 8.12: Payments and Transfers 1. Each Party shall permit all transfers and payments that relate to the supply of a service to be made freely and without delay into and out of its territory. 2. Each Party shall permit transfers and payments that relate to the supply of a service to be made in a freely convertible currency at the market rate of exchange that prevails at the time of transfer. 3. Notwithstanding paragraphs 1 and 2, a Party may prevent or delay a transfer or payment through the equitable, non-discriminatory, and good faith application of its laws that relate to: (a) bankruptcy, insolvency, or the protection of the rights of creditors; (b) issuing, trading, or dealing in securities and derivatives; (c) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities; (d) criminal or penal offenses; or (e) ensuring compliance with orders or judgments in judicial or administrative proceedings. 4. For greatercertainty, this Article does not preclude the equitable, non-discriminatory, and good faith application of a Party’s laws relating to its social security, public retirement, or compulsory savings programs. Article 8.13: Review The Parties shall, three years after the date of entry into force of this Agreement but no later than five years, and every three years thereafter, unless otherwise agreed, hold consultations to review their respective non-conforming measures referred to in paragraphs 1 and 2 of Article 8.7 (Reservations). The Parties shall, without prejudice to the result, hold these consultations with a view to increasing the conformity of these non-conforming measures with this Agreement. Article 8.14: Committee on Trade in Services 1. The Parties hereby establish a Committee on Trade in Services consisting of representatives of the Parties. 2. Thefunctions of the Committee on Trade in Services’are to: (a) review the implementation of this Chapter; (b) consider any other matters related to this Chapter identified by either Party; (c) consider matters related to Chapter 11 (Telecommunications), as well as activities of the Professional Services Working Group; (d) advance issues and reports at the request of theWorking Group on the Temporary Movement of Natural Persons, established under Article 9.6.1 (Temporary Movement of Natural Persons – Working Group on the Temporary Movement of Natural Persons), to the Joint Committee, established under Article 23.1 (Administrative and Institutional Provisions – Establishment of the Joint Committee); (e) discussand coordinate with the Committee on Investment, established under Article 13.20.1 (Investment – Committee on Investment), on matters related to this Chapter and Chapter 13 (Investment), and non-conforming measures pursuant to Article 8.7 (Reservations); and (f) report to the Joint Committee as required. ANNEX 8-A DEVELOPMENT AND ADMINISTRATION OF MEASURES 1. This Annex sets out additional commitments related to the authorisation to supply a service. Commitments in this Annex do not apply to the aspects of a measure set out in an entry to a Party’s Schedule to Annex I-A(Reservations for Existing Measures – ratchet) or Annex I-B (Reservations for Existing Measures – standstill), or to a measure that a Party adopts or maintains with respect to sectors, sub-sectors, or activities as set out by that Party in its Schedule to Annex II (Reservations for Future Measures). Definitions 2. For the purposes of this Annex: authorisation means the granting of permission by a competent authority to a person to supply a service, resulting from a procedure to which an applicant must adhere in order to demonstrate compliance with a licensing requirement, a qualification requirement, or a technical standard; competent authority means any government of a Party, or non-governmental body in the exercise of powers delegated by any government or authorities of a Party, that grants an authorisation; Review of administrative decisions 3. Each Party shall maintain or institute judicial, arbitral,or administrative tribunals or procedures which provide for, at the request of an affected service supplier of the other Party, a prompt review of, and if justified, appropriate remedies for, administrative decisions relating to the supply of a service. If these procedures are not independent of the agency entrusted with the administrative decision concerned, each Party shall ensure that the procedures are applied in a way that provide for an objective and impartial review. 4. Paragraph 3 shall not be construed to require a Party to institute tribunals or procedures ifthis would be inconsistent with its constitutional structure or the nature of its legal system. Development of measures 5. If a Party adopts or maintains a measure with respect to the authorisation to supply a service, that Party shall ensure that: (a) the measure isbased on criteria that are: (i) objective and transparent, such as competenceand ability to supply a service, including to do so in a manner consistent with the Party’s regulatory requirements; and (ii) made publicly accessible, and if applicable, established in advance; (b) the authorisation process does not, in itself, unjustifiably restrict the supply of the service; and (c) themeasure doesnot discriminate between men and women.6 6. In determining whether a Party is in conformity with its obligations under sub-subparagraph 5(a)(i), account may be taken of international standards of relevant international organisations7 applied by that Party. 7. Ifa Party adopts or proposes regulations relating to the authorisation to supply a service, it shall endeavour to undertake a regulatory impact assessment, as referenced in Chapter 21 (Good Regulatory Practices and Regulatory Cooperation). Administration of measures 8. Each Party shall ensure that licensing or qualification procedures used by the competent authority and decisions of the competent authority in the authorisation process are impartial with respect to all applicants. The competent authority should reach its decisions in an independent manner and, in particular, should not be accountable to any person supplying a service for which the authorisation is required. 9. To the extent practicable, each Party shall avoid requiring an applicant to approach more than one competent authority for each application for authorisation. For greater certainty, a Party may require multiple applications for authorisation where a service is within the jurisdiction of multiple competent authorities. 10. If authorisation is required for the supply of a service, a competent authority of a Party shall: (a) to the extent practicable, permit an applicant to submit an application at any time;8 (b) allow a reasonable period for the submission of an application,if specific time periods for applications exist; (c) upon submission from the applicant, initiate the processing of the application without undue delay; (d) to the extent practicable, establish an indicative timeframe to ensure that the processing of an authorisation, including reaching a final decision, is completed within a reasonable period of time from the date of submission of a complete application; (e) if an application is considered incomplete under a Party’s laws and regulations, within a reasonable period of time, and to the extent practicable: (i) inform the applicant that the application is incomplete; and (ii) at the applicant’s request, provide guidance on why the application is considered incomplete and enable the applicant to provide the additional information required to complete the application; 6 Differential treatment that is reasonable, objective, and aims to achievealegitimate policy objective, or the adoption of temporary special measures aimed at accelerating equality, shallnotbe considered discriminatory for thepurposes of subparagraph 5(c). 7 “Relevant international organisations”refers tointernationalbodies whose membership is open to the relevant bodies of each Party. 8 A competent authorityis not required to start considering applications outside of its official working hours and workingdays. (f) if itis not practicable to carry out what is set out insub.subparagraphs (e)(i) and (ii), and the application is rejected due to incompleteness, within a reasonable period of time, and to the extent practicable: (i) ensure that the applicant is informed in writing, including by electronic means; and (ii) atthe applicant’s request, may also inform the applicant of the reasons the application was rejected and of the timeframe for an appeal or review ofthe decision. The applicant should be permitted, within a reasonable period of time, to resubmit an application; (g) within a reasonable period of time after the date of submission of an application considered complete under its laws and regulations, inform the applicant of the decision concerning the application; (h) at the request of the applicant, provide without undue delay, information concerning the status of the application; (i) if appropriate, accept copies of documents that are authenticated in accordance with the Party’s laws and regulations in place of original documents;9 and (j) ensure that an authorisation, once granted, enters into effect without undue delay, subject to the applicable terms and conditions. Fees 11. Each Party shall ensure that any authorisation fee charged by a competent authority is reasonable, transparent, and does not, in itself, restrict the supply of the 10 relevant service. Transparency 12. Ifa Party requires authorisation to supply a service, the Party shall promptly publish,11 or otherwise make publicly available in writing, the information necessary for a service supplier, or a person seeking to supply a service, to comply with the requirements and procedures for obtaining, maintaining, amending, and renewing such authorisation. That information shall include, among other things and where applicable: (a) authorisation fees; (b) contact information of relevant competent authorities; (c) procedures for appeal or review of decisions concerning applications; (d) procedures for monitoring or enforcing compliance with the terms and conditions of licenses; 9 For greater certainty,a competent authority may require original documents toprotect the integrity of the authorisation process. 10 For the purposes of this paragraph, authorisationfees donot include fees for theuseof natural resources, royalties, payments forauction, tendering,or other non-discriminatory means of awarding concessions ormandated contributions to universal service provision. 11 For the purposes of this paragraph, “publish” means to includeinan official publication, such as anofficial journal or on an official website. (e) opportunities for public involvement, such as through hearings or comments; (f) indicative timeframes for processing of an application; and (g) the requirements, procedures, and technical standards. Examinations 13. If licensing or qualification requirements include the completion of an examination, each Party shall ensure that: (a) the examination is scheduled at reasonable intervals; and (b) a reasonable period of time is provided to enable an applicant to request to take the examination. 14. Further to paragraph 13, each Party shall endeavour to explore, as appropriate, the possibility of: (a) using electronic means for conducting that examination; and (b) providing opportunities for taking that examination in the territory of the other Party. 15. To the extent permissible under its laws and regulations, each Party shall not require physical presence in the territory of the other Party for the submission of an application for a license or qualification. 16. Each Party shall endeavour to accept applications through electronic means under similar conditions of authenticity as paper submissions, at all stages of the authorisation process, in accordance with its laws and regulations. 17. In the case of aprofessional service, each Party shall ensure that there are procedures in place domestically to assess the competency of professionals of the other Party. 18. If the results of the negotiations related to paragraph 4 of Article VI of GATS enter into effect, the Parties shall jointly review these results with a view to bringing them into effect, as appropriate, under this Agreement. ANNEX 8-B PROFESSIONAL SERVICES General Provisions 1. Each Party shall consult with relevant professional bodies or authorities in its territory to seek to identify professional services if the Parties are mutually interested in establishing a dialogue on issues that relate to the recognition of professional qualifications, licensing, or registration. 2. If a professional servicedescribed in paragraph 1 is identified, each Party shall encourage its relevant bodies or authorities to establish dialogues with the relevant bodies or authorities of the other Party, with a view to facilitating trade in professional services. The dialogues may consider, as appropriate: (a) recognition of professional qualifications and facilitating licensing and registration procedures through mutual recognition agreements or arrangements; (b) autonomous recognition of the education or experience obtained, requirements met, or licenses or certifications granted to a candidate in the territory of the other Party, for the purposes of fulfilling some or all of the licensing or examination requirements of that profession; (c) the development of mutually acceptable standards and criteria for the authorisation, licensing, certification, or registration of professional service suppliers from the territory of the other Party, including for education, examinations, experience, continuous professional development and re-certification, scope of practice, conduct and ethics, local knowledge, and consumer protection; (d) temporary or project-specific licensing or registration based on a foreign supplier’s home license or recognized professional body membership, without the need for further written examination, if feasible; (e) the form of association and procedures whereby a foreign-licensed supplier may work in association with a professional service supplier of a Party; or (f) any other approaches to facilitate authorisation to provide services by professionals licensed in the other Party, including by reference to international standards and criteria. 3. If relevant bodies or authorities enter into discussions for the purpose of creating a mutual recognition agreement or arrangement pursuant to subparagraph 2(a), those discussions may be guided by Appendix 8-B-1 (Guidelines for Mutual Recognition Agreements or Arrangements for the Professional Services Sector) for the negotiation of such an agreement or arrangement. 4. If a mutual recognition agreement or arrangement has been entered into by a relevant body at the national level, each Party shall work with the relevant body to encourage the application and implementation of the agreement or arrangement. 5. Any temporary or project-specific licensing or registration of the type referred to in subparagraph 2(d) should not operate to prevent a foreign service supplier from gaining a local licence once that service supplier satisfies the applicable local licensing requirements. 6. Each Party shall encourage its relevant bodies or authorities to take into account multilateral agreements that relate to professional services in the development of agreements on the recognition of professional qualifications, licensing, and registration. 7. If applicable, each Party shall encourage its relevant bodies or authorities to recognise through electronic means education or experience obtained or requirements met in the territory of the other Party, including through online portals used to apply for recognition, online courses, online registers of licensed individuals, as well as online platforms for continuous professional education and development. 8. Further to any dialogue referred to in subparagraphs 2(a) to (f), each Party shall encourage its respective relevant bodies or authorities to consider undertaking any related activity within a mutually agreed time as well as through electronic means. Professional Services Working Group 9. The Parties hereby establish a Professional Services Working Group (“Working Group”), composed of representatives of each Party. 10. The Working Group shall liaise, as appropriate, to support the Parties’ relevant bodies or authorities in pursuing the activities listed in paragraphs 2 and 4. This support may include facilitating dialogues, meetings, and other activities, or providing information concerning standards and criteria for the certification and licensing of professional service suppliers, including information concerning the relevant bodies or authorities to consult regarding these standards and criteria. 11. The Working Group shall meet within one year of the date of entry into force of this Agreement, and thereafter annually or as decided by the Parties, to review the implementation and discuss activities covered by this Annex. 12. The Working Group shall report to the Committee on Trade in Services progress undertaken by the Parties pursuant to this Annex, and on the future direction of its work within 60 days of each meeting or as decided by the Parties. APPENDIX 8-B-1 GUIDELINES FOR MUTUAL RECOGNITION AGREEMENTS OR ARRANGEMENTS FOR THE PROFESSIONAL SERVICES SECTOR Introductory Notes This Appendix provides practical guidance for governments, relevant bodies, or authorities entering into mutual recognition negotiations for a regulated professional services sector. These guidelines are non-binding, non-exhaustive, and are intended to be used by the Parties on a voluntary basis. They do not modify or affect the rights and obligations of the Parties under this Agreement. The objective of these guidelines is to facilitate the negotiation of mutual recognition agreements or arrangements (“MRAs”). The guidelines listed under this Appendix are provided by way of illustration. The listing of these guidelines is indicative and is intended neither to be exhaustive, nor as an endorsement of the application of thesemeasures by the Parties. Section A: Conduct of Negotiations and Relevant Obligations Opening of Negotiations 1. Governments, relevant bodies,or authorities intending to enter into negotiations towards an MRA are encouraged to inform the Professional Services Working Group (“Working Group”) established under Annex 8-B (Professional Services). The following information may be supplied: (a) the governments, relevant bodies, or authorities involved in negotiations that have authority, statutory or otherwise, to enter into the negotiations; (b) a contact point to obtain further information; (c) the subject of the negotiations(specific activity covered in the negotiations); and (d) the expected time of the start of negotiations. Results 2. Upon theconclusion of an MRA, the parties to the MRA are encouraged to inform the Working Group, and may supply the following information: (a) the content of a new MRA; or (b) if available, the significant modifications to an existing MRA. Follow-up Actions 3. As a follow-up action to theconclusion of an MRA, parties to the MRA are encouraged to inform the Working Group of the following: (a) that the MRA complies with the provisions of this Chapter and Annex 8-A (Development and Administration of Measures); (b) measures and actions taken regarding the implementation and monitoring of the MRA; (c) that the text of the MRA is publicly available; and (d) any other matters regarding theconclusion of the MRA. Section B: Form and Content of MRAs Introductory Note This Section sets out various issues that may be addressed in MRA negotiations and, if so agreed during the negotiations, included in the MRA. It includes some basic ideas on what a Party might require of foreign professionals seeking to take advantage of an MRA. Participants 4. The MRA should identify clearly: (a) the parties to the MRA (for example, governments, relevant bodies, or authorities); (b) competent authorities or organizations other than the parties to the MRA, if any, and their position in relation to the MRA; and (c) the status and area of competence of each party to the MRA. Purpose of the MRA 5. The purpose of the MRA should be clearly stated. Scope of the MRA 6. The MRA should set out clearly: (a) its definitions; (b) its scope in terms of the specific profession or titles and professional activities it covers in the territory of each Party; (c) who is entitled to use the professional titles concerned; (d) whether the recognition mechanism is based on qualifications, on the license or registration procedures obtained in the jurisdiction of origin, or on some other requirement; and (e) whether it covers the recognition of professional qualifications for the purpose of access to professional activities on a fixed-term or an indefinite basis. MRA Provisions 7. TheMRA should clearly specify the qualifications or registration conditions, and their equivalences, to be met for recognition between the parties to the MRA. If the requirements of the various sub-national jurisdictions under an MRA are not identical, the difference and the modalities for the recognition of qualifications between sub.national jurisdictions should be clearly presented. 8. The MRA should seek to ensure that recognition does not requirecitizenship or any form of residency, or education, experience, or training in the jurisdiction of the host party as a condition for recognition by that host party. 9. The requirements and procedures under the MRA should not discriminate between men and women. Eligibility for Recognition – Qualifications 10. If the MRA is based on recognition of qualifications, then it may state: (a) the minimum level of education required (including entry requirements, length of study, and subjects studied); (b) the minimum level of experience required (including location, length, and conditions of practical training or supervised professional practice prior to licensing, and framework of ethical and disciplinary standards); (c) examinations required, especially examinations of professional competence; (d) the extent to which jurisdiction of origin qualifications are recognised in the jurisdiction of the host party; and (e) the qualifications which the parties to the MRA are prepared to recognize, for instance, by listing particular diplomas or certificates issued by certain institutions, or by reference to particular minimum requirements to be certified by the authorities of the jurisdiction of origin, including whether the possession of a certain level of qualification would allow recognition for some activities but not others. Eligibility for Recognition – Registration 11. If the MRA is based on recognition of the professional licensing, membership,or registration decision made by regulators in the jurisdiction of origin, it should specify the mechanism by which eligibility for such recognition may be established. Eligibility for recognition – Additional Requirements for Recognition in the Jurisdiction of the Host Party (“Compensatory Measures”) 12. If it is considered necessary to provide for additional requirements to ensure the quality of the service, the MRA should set out the conditions under which those requirements may apply, for example, in case of shortcomings in relation to qualification requirements in the jurisdiction of the host party or knowledge of local law, practice, standards, and regulations. This knowledge should be essential for practice in the jurisdiction of the host party or required because there are differences in the scope of licensed practice. 13. If additional requirements are deemed necessary, the MRA should set out in detail what they entail (for example, examination, aptitude test, additional practice in the jurisdiction of the host party or in the jurisdiction of origin, practical training, and language used for examination). Mechanisms for Implementation 14. The MRA could state: (a) the rules and procedures to be used to monitor and enforce the provisions of the MRA; (b) the mechanisms for dialogue and administrative cooperation between the parties to the MRA; and (c) the means of arbitration for disputes under the MRA. 15. As a guide to the treatment of individual applicants, the MRA could include details on: (a) the focal point of contact in each party to the MRA for information on all issues relevant to the application (such as the name and address, licensing formalities, and information on additional requirements which need to be met in the jurisdiction of the host party); (b) the duration of procedures for the processing of applications by the relevant authorities of the jurisdiction of the host party; (c) the documentation required of applicants and the form, including by electronic means, in which it should be presented and any time limits for applications; (d) acceptance of documents and certificates, including by electronic means if applicable, issued in the jurisdiction of origin in relation to qualifications and licensing; (e) the procedures of appeal to or review by the relevant authorities in case of the rejection of an individual application for recognition; and (f) the fees that might be reasonably required. 16. The MRA could also include the following commitments: (a) that requests about the measures will be promptly dealt with; (b) that adequate preparation time will be provided if necessary; (c) that any exams or tests will be arranged with reasonable periodicity and accessibility; (d) that fees to applicants seeking to take advantage of the terms of the MRA will be in proportion to the cost to the host party or organisation; and (e) that information on any assistance programmes in the jurisdiction of the host party for practical training, and any commitments of the host party in that context, be supplied. Licensing and Other Provisions in the Jurisdiction of the Host Party 17. If applicable: (a) the MRA could also set out the means by which, and the conditions under which, a license is actually obtained following the establishment of eligibility, and what such license entails (such as a license and its content, membership of a professional body, and use of professional or academic titles); (b) a licensing requirement, other than qualifications and experience, may include, for example: (i) proof of payment of any required application fees; (ii) a language proficiency requirement; (iii) proof of good conduct and financial standing; (iv) professional indemnity insurance in accordance with the laws of the host party; (v) demonstratingknowledge of the occupational laws and regulations of the host party; (vi) compliance with the host party’s requirements foruse of trade or firm names; (vii) compliance with the host party’s ethics, for instance independence and incompatibility; and (viii) requirements for continuous professional development. 18. The MRA could require the parties to the MRA to communicate to their counterpart any new requirement or modification to an existing requirement that might have an impact on the recognition of qualifications under the MRA. Revision of the MRA 19. If the MRA includes terms under which it can be reviewed or revoked, and in the event of a revision or revocation, the MRA should clearly state the implications and details of those terms. CHAPTER 9 TEMPORARY MOVEMENT OF NATURAL PERSONS Article 9.1: Definitions For the purposes of this Chapter: business person means a natural person of a Party who is engaged in the trade of goods, the supply of services or the conduct of investment activities; immigration formality means: (a) For Indonesia, a visa, permit, pass, or other document, or electronic authority, granting temporary entry; (b) For Canada, a permit authorizing work; temporary entry means entry into the territory of a Party by a business person of the other Party without the intent to establish permanent residence; and immigration measure means any measure affecting the entry and stay of foreign nationals. Article 9.2: Scope 1. This Chapter applies to measures affecting the temporary entry of business persons of aParty into the territory of the other Party under the categories set out in each Party’s Schedule of Commitments for Temporary Movement of Natural Persons at Annex 9-A (Schedule of the Parties). 2. This Chapter does not apply to measures affecting natural personsseeking access to the employment market of the other Party, nor does it apply to measures regarding citizenship, nationality, residence, or employment on a permanent basis. 3. This Agreement does not prevent a Party from applying measures to regulate the entry of natural persons of the other Party into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across, its borders, provided that such measures are not applied in a manner that nullifiesor impairs the benefits accruing to the other Party under this Chapter. Article 9.3: Grant of Temporary Entry 1. Each Party shall grant temporary entry to a business person of the other Party, who is otherwise qualified for entry under its immigration measures, including measures relating to public health and safety and national security, in accordance with this Chapter and each Party’s Schedule of Commitments for Temporary Movement of Natural Persons at Annex 9-A (Schedule of the Parties). 2. A Party may refuse to grant temporary entry orissue an immigration formality to a business person of the other Party if the temporary entry of that business person might adversely affect: (a) the settlement of any labour dispute that is in progress at the intended place of employment; or (b) the employment of any natural person who is involved in such dispute. 3. A Party may require a business person seeking temporary entry under this Chapter to obtain an entry visa or an equivalent requirement, prior to temporarily entering, working, or establishing acommercial presence, in accordance with its laws and regulations. The sole fact that a Party requires a business person of the other Party to obtain an entry visa, or an equivalent requirement prior to temporarily entering, working, or establishing a commercial presence, shall not be regarded as nullifying or impairing the benefits accruing to the other Party under this Chapter. 4. The sole fact that a Party grants temporary entry or issuesan immigration formality to a business person of the other Party pursuant to this Chapter does not exempt that business person from meeting any applicable licensing or other requirements, including any mandatory codes of conduct, to practise a profession or otherwise engage in business activities. Article 9.4: Application Procedures 1. Each Party shall, as expeditiously as possible following receipt of a complete application for an immigration formality, issue its decision to the applicant. If approved, the decision shall specify the period of stay and other conditions. 2. At the request of an applicant, the Party that has received a complete application for an immigration formality, shall endeavour to promptly provide information concerning the status of the application, either directly or through their authorized representative. 3. Each Party shall endeavor to accept and process applications for an immigration formality in electronic format. 4. In accordance with its laws and regulations, any fee imposed by a Party in respect of theprocessing of an immigration formality shall be reasonable in that it does not, in itself, represent an unjustifiable impediment to the movement of natural persons of the other Party under this Chapter. 5. Nothing in this Chapter impairsthe ability of an applicant to apply for temporary entry or an immigration formality through the domestic regime of a Party. Article 9.5: Provision of Information Further to Article 22.2 (Transparency, Anti-Corruption, and Responsible Business Conduct – Publication), each Party shall promptly after the date of entry into force of this Agreement: (a) publish online if possible, or otherwise make publicly available, explanatory material on its measures relating to this Chapter; and (b) establish or maintain appropriate mechanisms to respond to enquiries from interested persons regarding measures relating to temporary entry covered by this Chapter. Article 9.6: Working Group on the Temporary Movement of Natural Persons 1. The Parties hereby establish a Working Group on the Temporary Movement of Natural Persons (“Working Group”) composed of government representatives of each Party, including representatives of competent authorities.1 These competent authorities act as each Party’s Contact Point for matters pertaining to this Chapter. 2. The Working Group shall meet as required to exchange information as described in Article 9.5 (Provision of Information) and to consider matters pertaining to this Chapter, such as: (a) the implementation and administration of this Chapter; (b) the development of common criteria and interpretation for the implementation of this Chapter; (c) the development of measures to further facilitate temporary entry of business persons; and (d) proposed modification to this Chapter. 3. The Working Group shall report throughthe Trade in Services Committee, established under Article 8.14 (Trade in Services – Committee on Trade in Services). Article 9.7: Dispute Settlement 1. TheParties shall endeavour to settle any difference arising out of the implementation of this Chapter through consultations between Contact Points. 1 For greater certainty,competent authoritiesfor Indonesia refers to the Directorate General of Immigration,Ministry of Immigration and Correction, the Directorate General of ManpowerPlacement Development and Employment Opportunities Expansion, Ministry ofManpower, and the Directorate of Trade in Services Negotiation, Ministry of Trade. Forgreater certainty, competent authorities for Canada refers to the Director General of the Temporary Workers Branch, at Citizenship andImmigration Canada. 2. AParty may not initiate proceedingsunder Chapter 24(Dispute Settlement) regarding a refusal to grant temporary entry to business persons under this Chapter unless: (a) the matter involves a pattern of practice; (b) the business person who has been refused temporary entry has exhausted the applicable administrative remedies; and (c) the Contact Points have been unable to resolve theissue. 3. Theadministrative remedies referred to in subparagraph (2)(b)shall be deemed to have been exhausted if a final determination in the matter has not been issued by the competent authority within a reasonable period of time after the date of the institution of an administrative proceeding, and the failure to issue a determination is not attributable to delay caused by the business person. Article 9.8: Relation to Other Chapters 1. This Agreement does not impose an obligation on a Party regarding its immigration measures, except as specifically provided in this Chapter or Chapter 22 (Transparency, Anti-Corruption, and Responsible Business Conduct). 2. Nothing in this Chapter shall be construed to impose obligations or commitments with respect to other Chapters of this Agreement. Article 9.9: Cooperation The Parties may discuss mutually agreed areas of cooperation to further facilitate the temporary entry and temporary stay of natural persons of the other Parties, including: (a) upon request of a Party, subject to its domestic laws regarding protection of personal data and other relevant laws and regulations, exchanging information on statistical data respecting the granting of temporary entry for business persons covered by this chapter of the other Party; and (b) establishing adialogue on collecting and maintaining statistical data. ANNEX 9-A SCHEDULE OF THEPARTIES CANADA’S SCHEDULE OF SPECIFIC COMMITMENTS ON TEMPORARY MOVEMENT OF NATURAL PERSONS 1. The following sets out Canada’s commitments in accordance with Article 9.3 (Grant of Temporary Entry) in respect of the temporary entry of business persons. 2. For greatercertainty, Canada’s commitments do not impose any obligation on Canada’s Temporary Resident Visa or any subsequent visa regime. A. Business Visitors Canada’s commitments under this category apply to Indonesian business persons if Indonesia has made a reciprocal commitment in its Schedule for this category of business persons without reserving the right to impose or maintain an economic needs test or any form of numerical restrictions. Description of Category Conditions and Limitations (including length of stay) An Indonesian Business Visitor is a Canada shall grant temporary entry for a business person who seeks to engage in period of up to 180 days to an Indonesian one of the following business activities: business person seeking to enter Canada as a Business Visitor to engage in a Meeting and Consultations covered business activity, without requiring that business person to obtain Business persons attending meetings, an immigration formality, provided that seminars, or conferences; or engaged in the business person provides evidence consultations with business associates. demonstrating that the proposed business Trade Fairs and Exhibitions activity is international in scope and the business person is not seeking to enter A business person attending a trade fair the local labour market. for the purpose of promoting their enterprise or its products or services. The Indonesian business person will be required to demonstrate that: Marketing (a) the primary source of Market researchers or analysts conducting research or analysis independently or for an enterprise located remuneration for the proposed business activity is outside Canada’s territory; and in the territory of the other Party. Research and Design Technical, scientific, or statistical researchers conducting independent research or research for an enterprise located in the territory of the other Party. Sales Sales representatives or agents taking orders or negotiating contracts for goods or services for an enterprise located in the territory of the other Party but not delivering goods or providing services. This includes buyers purchasing for an enterprise located in the territory of the other Party. (b) the business person’s principal place of business and the actual place of accrual of profits, at least predominantly, remain outside of Canada’s territory. The Indonesian business person must comply with Canada’s immigration measures applicable to temporary entry. B. Intra-Corporate Transferees Indonesian business persons under this category are granted temporary entry in accordance with the Immigration and Refugee Protection Act (S.C. 2001, c. 27) and the Immigration and Refugee Protection Regulations (SOR/2002-227), as amended, if Indonesia has made a reciprocal commitment in its Schedule for this category of business persons. C. Investors Canada’s commitments under this category apply to Indonesian business persons if Indonesia has made a reciprocal commitment in its Schedule for this category of business persons, for both pre.and post-establishment investment activities, without reserving the right to impose or maintain an economic needs test. Canada reserves the right to require remuneration at a level commensurate with other similarly qualified business persons within the industry in the region in Canada where the work is performed. Description of Category Conditions and Limitations (including length of stay) Investors are business persons seeking to Canada shall grant temporary entry and establish, develop, or administer an issue an immigration formality for a investment to which the business person period of up to one year, with the or the business person’s enterprise has possibility of extensions, to an committed, or is in the process of Indonesian business person seeking to committing, a substantial amount of enter Canada as an Investor to establish, capital, in a capacity that is supervisory, develop, or administer an investment in a executive, or involves essential skills. capacity that is supervisory, executive, or involves essential skills. The Indonesian business person or the business person’s enterprise must also have committed, or be in the process of committing, a substantial amount of capital in the territory of Canada. The Indonesian business person must comply with Canada’s immigration measures applicable to temporary entry and the issuance of an immigration formality. D. Professionals Indonesian business persons under this category are granted temporary entry in accordance with the Immigration and Refugee Protection Act (S.C. 2001, c. 27) and the Immigration and Refugee Protection Regulations (SOR/2002-227), as amended, if Indonesia has made a reciprocal commitment in its Schedule for this category of business persons. E. Spouses Spouses of Indonesian business persons under Section B (Intra-Corporate Transferees), Section C (Investors), and Section D (Professionals) are granted temporary entry in accordance with the Immigration and Refugee Protection Act (S.C. 2001, c. 27) and the Immigration and Refugee Protection Regulations (SOR/2002-227), as amended, if Indonesia has made a reciprocal commitment in its Schedule for spouses of Canadian Intra-Corporate Transferees, Investors, and Professionals. INDONESIA’S SCHEDULE OF SPECIFIC COMMITMENTS ON TEMPORARY MOVEMENT OF NATURAL PERSONS 1. The following sets out Indonesia’s commitments in accordance with Article 9.3 (Grant of Temporary Entry) in respect of the temporary entry of business persons. 2. All measures in this Schedule shall comply with Indonesian labour and immigration laws and regulations. 3. The rights and obligations arising from this Chapter, including this Schedule, shall have no self-executing effect and thus confer no rights directly on a person. A. Business Visitors 1. A Canadian business person is not allowed to engage in making direct sales to the general public. 2. A Canadian business person shall not receive remuneration, rewards, wages, or any similar payment from a person in Indonesia. 3. Indonesia shall grant temporary entry and stay to a Business Visitor and will not: (a) subject a business person to an economic needs test or require any other procedure of similar intent as a condition of temporary entry; (b) impose or maintain any numerical restriction relating to temporary entry; or (c) require a business person to obtain a work permit or an equivalent requirement prior to entry as a condition for temporary entry. Description of Category Conditions and Limitations (Including Length of Stay) Business Visitor means a business person of a Party who seeks entry and temporary stay in the territory of the other Party, and who is allowed to engage in one of the following business activities: Meetings and Consultations Business persons attending meetings or conferences, or engaged in consultations with business associates. Entry and temporary stay is permitted for a period of 60 days and could be extended with maximum stay in Indonesia of 180 days. With respect to pre-investment, entry and temporary stay is permitted for a period of 180 days and could be extended with maximum stay in Indonesia of 12 months. Trade Fairs and Exhibitions Business persons attending a trade fair for the purpose of promoting their enterprise or its products or services. Business Activities Including sales and purchasing: representatives of a supplier of services or goods conducting discussions, negotiations, or signing a business agreement but not delivering goods or supplying services themselves. After-Sales or After-Lease Service Business persons possessing specialised knowledge essential to a seller’s contractual obligation, performing services, pursuant to a warranty or other service contract incidental to the sale or For after-sales or after-lease service activities, a Canadian business person shall fulfill the following conditions: (a) only carry out services supplied to manufacturing sectors and sub-sectors that require high technology and high capital and where after-sales or after-lease service cannot be provided by domestic after-sales or after.lease service providers; and (b) obtain a statement from an enterprise explaining that the after-sales or after-lease service of the machine must be carried out by the respective Canadian service supplier and cannot be represented/authorized to others. lease of commercial or industrial equipment or machinery, from an enterprise located outside the territory of the Party into which temporary entry is sought, throughout the duration of the warranty or service contract. Pre-Investment For pre-investment activities, a Canadian business person shall obtain an invitation/correspondence letter from a government agency or private institution explaining the relationship with that business person. A business persons, including a business person working for a Canadian enterprise who is conducting activities within the territory of Indonesia such as market observation or feasibility analysis prior to making an investment. Description of Category Conditions and Limitations (Including Length of Stay) B. Intra-Corporate Transferees Intra-Corporate Transferees Director: One or a group of business persons entrusted by the shareholders of an enterprise with the final overall control and direction of the enterprise, and legally responsible to act on behalf of the enterprise. Entry and temporary stay is permitted for up to two years and could be extended with a maximum stay in Indonesia of six years. Manager: Senior employee of an enterprise who primarily directs the management of the organisation, receiving general supervision or direction principally from the board of directors of the enterprise, including directing the enterprise or a department or sub-division thereof, supervising or controlling the work of other supervisory, professional, or managerial employees. Technical Expert/Advisor: Business person employed by an enterprise who possesses a standard of high or common (i) qualifications referring to a type of work or trade requiring specific technical knowledge or (ii) knowledge essential or propriety to the service, research equipment, techniques, or management. Must be working in an occupation allowed to be filled by a foreign worker as provided in Minister of Manpower Decree Number 228 of 2019 concerning Certain Positions 2Permissible for Foreign Employees. A foreign natural person supplying services is subject to charges levied by the Government. An employer of a foreign natural person must have a Foreign Worker Utilisation Plan (“RPTKA”) approved by the Ministry of Manpower. A Canadian business person entering Indonesia must: (a) possess an educational degree in accordance with the job qualification; (b) possess competency or at least five years of work experience in accordance with the job qualification, unless mentioned otherwise in accordance with relevant laws and regulations; and (c) transfer knowledge and skills to an Indonesian worker appointed as an associate, including the educational qualification of that associate pursuant to relevant laws and regulations. Human resources or personnel functions must be performed by an Indonesian national. In addition, with respect to the following sectors, Indonesia applies conditions and limitations as specified below: 1. Commercial banking May only employ a Canadian business person to the extent that there are no sufficiently qualified Indonesian business persons. 2 In the event of any amendmentor replacement of the regulation, theamendment or replacement willprevail. 2. Health services Subject to recommendation from the relevant Indonesian authority. 3. Educational Services Subject to recommendation from the relevant Indonesian authority. Description of Category Conditions and Limitations (Including Length of Stay) C. Investors Indonesia shall grant temporary entry and stay to Investors and will not: (a) subject an investor to an economic needs test or require any other procedure of similar intent as a condition of temporary entry; or (b) impose or maintain any numerical restriction relating to temporary entry. Investors are business persons or a business person employed in an enterprise of Canada who seek to make, are making or have made an investment within the territory of Indonesia pursuant to its laws and regulations. The length of stay for an Investor is up to: (a) two years, with possible extension subject to a minimum investment value and form of establishment (Limited Liability Company) based on prevailing laws and regulations; (b) five and 10 years with possible extensions. The investors shall provide the proof of immigration guarantee in the form of a commitment letter subject to prevailing laws and regulations. The commitment in that letter must be fulfilled in the period of 90 days from the issuance of the limited stay permit (Izin Tinggal Terbatas). The types of Investors are as follows: (i) an individual Investor for establishment purposes; (ii) an individual on a board of directors or board of commissioners from a Canadian company who seeks to establish an enterprise in Indonesia; or (iii) a business person who is a representative of a holding company, visiting or working in a branch in Indonesia. Documents required are subject to prevailing laws and regulations. Description of Category Conditions and Limitations (Including Length of Stay) Professionals Professional means a business person possessing appropriate educational and other qualifications relevant to the service to be provided who is engaged in the supply of a contracted service, where the professional has a service contract from an enterprise of a Party, who enters and temporarily stays in the territory of the other Party in order to fulfil the contract to provide services. A Professional requires: (a) theoretical and practical application of a body of specialised knowledge; (b) a university degree or a qualification demonstrating knowledge of an equivalent level; The length of stay for a Professional is up to one year. Must be working in an occupation that is allowed to be filled by a foreign worker as provided in Minister of Manpower Decree Number 228 of 2019 concerning Certain Positions Permissible for Foreign Employees.3 A foreign natural person supplying services is subject to charges levied by the Government. An employer of a foreign natural person must have a Foreign Worker Utilisation Plan (“RPTKA”) approved by the Ministry of Manpower. (c) professional qualifications if required to exercise an activity pursuant to the law, regulations, or other legal requirements of the Party where the service is supplied. A Canadian business person entering Indonesia must: (a) possess an educational degree in accordance with the job qualification; Indonesia takes commitments for the (b) possess competency or at least following professions: five years of work experience in accordance with the job -Legal advisors and legal qualification, unless mentioned consultants otherwise in accordance with relevant laws and regulations; -Engineers and -Architects (c) transfer knowledge and skills to -Urban planners an Indonesian worker appointed as an associate, including -Information and Communication Technology Professionals qualification of education that associate pursuant to relevant Laws and Regulations. -Forestry Management Advisors -Management consultants In addition, with respect to the following Profession, Indonesia applies conditions and limitations as specified below: Legal services Subject to recommendation from Advocate Association and Ministry of Law. Spouses The temporary entry and stay of a spouse is subject to the Intra-Corporate Transferee, Investor, or Professional whom the spouse is accompanying, but without an automatic right to work in Indonesia. CHAPTER 10 FINANCIAL SERVICES Article 10.1: Definitions For the purposes of this Chapter: covered person means: (a) a financial institution of the other Party; or (b) a cross-border financial service supplier of the other Party that is subject to regulation, supervision, and licensing, authorization, or registration by a financial regulatory authority of the Party; cross-border financial service supplier of a Party means a person of a Party that is engaged in the business of supplying a financial service within the territory of the Party and that seeks to supply or supplies a financial service through the cross-border supply of that service; cross-border trade in financial services or cross-border supply of financial services means the supply of a financial service: (a) from the territory of a Party into the territory of the other Party; (b) in the territory of a Party to a person of the other Party; or (c) by a national1of a Party in the territory of the other Party, but does not include the supply of a financial service in the territory of a Party by an investment in that territory; financial institution means a financial intermediary or other enterprise that is authorised to do business and regulated or supervised as a financial institution under the law of the Party in whose territory it is located; financial institution of the other Party means a financial institution, including a branch, located in the territory of a Party that is controlled by a person of the other Party; financial service means a service of a financial nature. A financial service includes all insurance and insurance-related services, all banking and other financial services (excluding insurance), and services incidental or auxiliary to a service of a financial nature. Financial services include the following activities: Insurance and insurance-related services (a) direct insurance (including co-insurance): (i) life; (ii) non-life; (b) reinsurance and retrocession; 1 For the purposes of the useof theterm “national” throughout this Chapter, anatural person whois a dual citizen shall be deemed to be exclusively anational of the Party of his or her dominant and effective nationality. (c) insurance intermediation, such as brokerageand agency; and (d) services auxiliary to insurance, such as consultancy, actuarial, risk assessment, and claim settlement services; Banking and other financial services (excluding insurance) (e) acceptance of deposits and other repayable funds from the public; (f) lending of all types, including consumer credit, mortgage credit, factoring, and financing of commercial transactions; (g) financial leasing; (h) all payment and money transmission services, including credit, charge and debit cards, travellers cheques, and bankers drafts; (i) guarantees and commitments; (j) trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following: (i) money market instruments (including cheques, bills, certificates of deposits); (ii) foreign exchange; (iii) derivative products, including futures and options; (iv) exchange rate and interest rate instruments, including products such as swaps, and forward rate agreements; (v) transferable securities; and (vi) other negotiable instruments and financial assets, including bullion; (k) participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues; (l) money broking; (m) asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services; (n) settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments; (o) provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services; and (p) advisory, intermediation,and other auxiliary financial services on all the activities listed in subparagraphs (e) through (o), including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy; financial service supplier of a Party means a person of a Party that is engaged in the business of supplying a financial service within the territory of that Party; investment means “investment” as defined in Article 13.1 (Investment – Definitions), except that, with respect to “a loanto an enterprise” and a “debt instrument of an enterprise” referred to in that Article: (a) a loan to or debt instrument issued by a financial institution is an investment only if it is treated as regulatory capital by the Party in whose territory the financial institution is located; and (b) a loan granted by or debt instrument owned by a financial institution, other than a loan to or debt instrument issued by a financial institution referred to in subparagraph (a), is not an investment; for greater certainty, a loan granted by or debt instrument owned by a cross-border financial service supplier of a Party, other than a loan to or debt instrument issued by a financial institution, is an investment for the purposes of Chapter 13 (Investment), if that loan or debt instrument meets the criteria for investments set out in Article 13.1 (Investment – Definitions); investor of a Party means a Party, or a person of a Party, that seeks to make2, is making, or has made an investment in the territory of the other Party. For the purposes of this definition, a “person of a Party” that is an enterprise of a Party means: (a) an enterprise that is constituted or organized under the law of that Party and that has substantial business activities in the territory of that Party. A determination of whether an enterprise has substantial business activities in the territory of a Party requires a case-by-case, fact-based inquiry; or (b) an enterprise that is constituted or organised under the law of that Party, and is directly or indirectly owned or controlled by a national of that Party or by an enterprise mentioned under subparagraph (a); new financial service means a financial service not supplied in the Party’s territory that is supplied by a financial institution within the territory of the other Party, and includes any new form of delivery of a financial service or the sale of a financial product that is not sold in the Party’s territory; person of a Party means a national of a Party or an enterprise of a Party and, for greater certainty, does not include a branch of an enterprise of a non-Party; 2 For greater certainty,the Parties understand that, for the purposes of thedefinition of “investor of a Party”, an investor “seeks to make” an investment when that investor has taken concrete actions to make an investment.Wherea notification or approval processis requiredfor making an investment, aninvestor that “seeks to make” an investment refers to an investorof theother Party that has initiated such notificationor approval process. public entity means a government, a central bank or monetary authority, or a financial services authority3 of a Party, or any financial institution that is owned or controlled by a Party; and self-regulatory organisation means any non-governmental body, including any securities or futures exchange or market, clearing agency, or other organisation or association, that exercises regulatory or supervisory authority over financial service suppliers or financial institutions by statute or delegation from a Party’s financial regulatory authorities. Article 10.2: Scope 1. This Chapter appliesto a measureadopted or maintained by a Party relating to: (a) a financial institution of the other Party; (b) an investor of the other Party, and an investment of thatinvestor, in a financial institution in the Party’s territory; and (c) cross-border trade in financial services. 2. Chapter 8 (Trade in Services) and Chapter 13 (Investment) apply to a measure described in paragraph 1 only to the extent that those Chapters are incorporated into this Chapter. (a) Article 8.11 (Trade in Services – Denial of Benefits), Article 13.4 (Investment – Right to Regulate), Article 13.5 (Investment – Regulatory Objectives), Article 13.8 (Investment – Treatment in Case of Armed Conflict or Civil Strife), Article 13.9 (Investment – Minimum Standard of Treatment), Article 13.10 (Investment – Expropriation), Article 13.11 (Investment – Transfer of Funds), Article 13.15 (Investment – Denial of Benefits), Article 13.16 (Investment – Special Formalities and Information Requirements), and Article 13.21 (Investment – Exclusions) are incorporated into and made a part of this Chapter. (b) Section D (Investor-State Dispute Settlement) of Chapter 13(Investment) is incorporated into and made a part of this Chapter solely for claims that a Party has breached Article 13.8 (Investment – Treatment in Case of Armed Conflict or Civil Strife), Article 13.10 (Investment – Expropriation), Article 13.11 (Investment – Transfer of Funds), Article 13.15 (Investment – Denial of Benefits), and Article 13.16 (Investment – Special Formalities and Information Requirements), as incorporated into this Chapter under subparagraph (a).4 (c) Article 8.12(Trade in Services –Payments and Transfers) is incorporated into and made a part of this Chapter to the extent that cross-border trade in financial services is subject to obligations pursuant to Article 10.6 (Cross-Border Trade). 3 The Parties confirm theirunderstanding that, in thecaseof Indonesia, for thepurposes of this definition, “financial services authority” refers to Otoritas Jasa Keuangan,or its successors. 4 For greater certainty,Section D (Investor-StateDispute Settlement) of Chapter 13 (Investment) doesnotapply to cross-border trade in financial services. 3. This Chapter does not apply to a measureadopted or maintained by a Party relating to: (a) an activityor a serviceforming part of a public retirement plan or statutory system of social security; or (b) an activityor service conducted for theaccount or with the guarantee or using the financial resources of the Party, including its public entities, except that this Chapter applies to the extent that a Party allows an activity or service referred to in subparagraph (a) or (b) to be conducted by its financial institutions in competition with a public entity or a financial institution. 4. This Chapter does not apply to government procurement of financial services. 5. This Chapter does not apply to a subsidyor grant,including a government.supported loan, guarantee, and insurance, with respect to the cross-border supply of financial services. Article 10.3: National Treatment 1. Each Party shall accord to an investor of the other Party treatment no less favourable than that it accords, in like circumstances, to its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of financial institutions and investments in financial institutions in its territory. 2. Each Party shall accord to a financial institution of the other Party, and to an investment of an investor of the other Party in a financial institution, treatment no less favourable than that it accords, in like circumstances, to its own financial institutions, and to investments of its own investors in financial institutions with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of financial institutions and investments. 3. For the purposes of the national treatment obligation in Article 10.6.1 (Cross-Border Trade), a Party shall accord to a cross-border financial service supplier of the other Party treatment no less favourable than that it accords, in like circumstances, to its own financial service suppliers with respect to the supply of the relevant service. 4. The treatment accorded by a Party under paragraphs 1,2,and 3means, with respect to a government other than at the central level, treatment accorded, in like circumstances, by that government to financial institutions of the Party, investors of the Party in financial institutions, and investments of those investors in financial institutions, of the Party of which it forms a part. 5. For greater certainty, whether treatment is accorded in “like circumstances” depends on the totality of the circumstances, including whether the relevant treatment distinguishes between investors in financial institutions, investments in financial institutions, financial institutions, financial services, or financial service suppliers on the basis of legitimate public policy objectives. 6. Paragraphs 1, 2, and 3 prohibit discrimination based on nationality. A difference in treatment accorded to an investor of the other Party in a financial institution, that investor’s investment in a financial institution, or a financial institution of the other Party and a Party’s own investors in financial institutions, investments of its own investors in financial institutions, or its own financial institutions, does not, in and of itself, establish discrimination based on nationality.

Article 10.4: Most-Favoured-Nation Treatment

1. Each Party shall accord to: (a) an investor of the other Party, treatment no less favourable than that it accords, in like circumstances, to investors of a non-Party; (b) a financial institution of the other Party, treatment no less favourable than that it accords, in like circumstances, to financial institutions of a non-Party; (c) an investment of an investor of the other Party in a financial institution, treatment no less favourable than that it accords, in like circumstances, to investments of investors of a non-Party in financial institutions; and (d) a cross-border financial service supplier of the other Party, treatment no less favourable than that it accords, in like circumstances, to cross-border financial service suppliers of a non-Party.

2. The treatment to beaccorded by a Party under paragraph 1 means, with respect to a government other than at the central level, treatment accorded, in like circumstances, by that government to financial institutions of a non-Party, investors of a non-Party in financial institutions, and investments of those investors in financial institutions, or financial services or cross-border financial service suppliers of a non-Party.

3. The“treatment”referred to in paragraphs1and 2 does not include procedures or mechanisms for the resolution of investment disputes between investors and States provided for in other international investment treaties and other trade agreements.

4. Substantive obligations in other international investment treaties and other trade agreements do not in themselves constitute “treatment”, and thus cannot give rise to a breach of this Article, in the absence of measures adopted or maintained by a Party pursuant to those obligations. 5. For greater certainty, whether treatment is accorded in “like circumstances” under this Article depends on the totality of the circumstances, including whether the relevant treatment distinguishes between investors in financial institutions, investments in financial institutions, financial institutions, financial services, or financial service suppliers on the basis of legitimate public policy objectives. 6. Paragraph 1 prohibits discrimination based on nationality. A difference in treatment accorded to an investor of the other Party in a financial institution, that investor’s investment in a financial institution, or a financial institution of the other Party and a non-Party’s investors in financial institutions, investments of a non-Party’s investors in financial institutions, or a non-Party’s financial institutions, does not, in and of itself, establish discrimination based on nationality. Article 10.5: Market Access for Financial Institutions5 A Party shall not adopt or maintain with respect to a financial institution of the other Party or an investor of the other Party seeking to establish a financial institution, either on the basis of a regional subdivision or on the basis of its entire territory, a measure that: (a) imposes alimitation on: (i) the number of financial institutions whether in the form of numerical quotas, monopolies, exclusive service suppliers, or the requirement of an economic needs test; (ii) the total value of financial service transactions or assets in the form of numerical quotas or the requirement of an economic needs test; (iii) the total number of financial service operations or the total quantity of financial services output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;6 (iv) the total number of natural persons that may beemployed in a particular financial service sector or that a financial institution may employ and who are necessary for, and directly related to, the supply of a specific financial service in the form of numerical quotas or the requirement of an economic needs test; or (b) restrictsor requiresa specific type of legal entity or joint venture through which a financial institution may supply a service. Article 10.6: Cross-Border Trade 1. Each Party shall permit, under terms and conditions that accord national treatment, a cross-border financial service supplier of the other Party to supply the financial services specified in Annex 10-A (Cross-Border Trade). 5 For the purposes of aParty’s reservations pursuantto Article 10.10.1 and 10.10.2 (Non-ConformingMeasures), a limitation on theparticipationof foreign capital by way of a maximumpercentage limit on foreign shareholdingor the total value ofindividualor aggregate foreigninvestment is reserved against Article 10.3 (National Treatment) to the extent a limitation is inconsistentwith that Article. 6 Subparagraph (a)(iii) does notcover a measureof a Party that limits inputs forthe supply of financial services. 2. Article 10.5 (Market Access for Financial Institutions) applies to the treatment of a cross-border financial service supplier of the other Party supplying the financial services specified in Annex 10-A (Cross-Border Trade). For the purposes of this Article, a measure that a Party “shall not adopt or maintain with respect to a financial institution of the other Party or an investor of the other Party” under Article 10.5 (Market Access for Financial Institutions) refers to a measure relating to a cross-border financial service supplier of the other Party supplying the financial services specified in Annex 10-A (Cross-Border Trade). 3. Each Party shall permit persons located in its territory, and its nationals wherever located, to purchase financial services from a cross-border financial service supplier of the other Party located in the territory of the other Party. This obligation does not require a Party to permit a cross-border financial service supplier of the other Party to do business or solicit in its territory. Each Party may define “doing business” and “solicitation” for the purposes of this obligation provided that those definitions are not inconsistent with paragraph 1. 4. Without prejudice to other means of prudential regulation of cross-border trade in financial services, a Party may require the registration or authorisation of a cross-border financial service supplier of the other Party and of a financial instrument. Article 10.7: New Financial Services7 Each Party shall permit a financial institution of the other Party to supply a new financial service that the Party would permit its own financial institutions, in like circumstances, to supply without adopting a law or modifying an existing law.8 Notwithstanding Article 10.5(b) (Market Access for Financial Institutions), a Party may determine the institutional and juridical form through which the new financial service may be supplied and may require authorisation for the supply of the service. If a Party requires a financial institution to obtain authorisation to supply a new financial service, the Party shall decide within a reasonable period of time whether to issue the authorisation and may refuse the authorisation for prudential reasons, but not solely for the reason that the service is not supplied by any financial institution in its territory. Article 10.8: Treatment of Customer Information This Chapter does not require a Party to disclose information related to the financial affairs and accounts of individual customers of financial institutions or cross-border financial service suppliers. 7 The Parties understand that nothing in this Articleprevents a financial institution of a Party fromapplyingto theother Party to request that it authorisethe supply of a financial servicethat is notsupplied intheterritory of either Party. That application shall besubject tothelaw of theParty to which theapplication is made and, for greater certainty,shallnot be subject to this Article. 8 For greater certainty,a Party may issue a new regulation or other subordinate measure in permitting the supplyof the new financial service. Article 10.9: Senior Management and Boards of Directors 1. A Party shall not require a financial institution of the other Party to engage a natural person of a particular nationality as senior managerial or other essential personnel. 2. A Party shall not requirethat more than a simple majority of the board of directors of a financial institution of the other Party be composed of nationals of the Party, persons residing in the territory of the Party, or a combination thereof. 3. A Party should encourage financial institutions to consider greater diversity in senior management positions or on theirboard of directors, which may include a requirement to nominate women. Article 10.10: Non-Conforming Measures 1. Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment), Article 10.5 (Market Access for Financial Institutions), Article 10.6 (Cross-Border Trade), and Article 10.9 (Senior Management and Boards of Directors) do not apply to: (a) any existing non-conforming measure that is maintained by a Party at: (i) the central level of government, as set out by that Party in Section A of its Schedule to Annex III; (ii) a regional level of government, as set out by that Party in Section A of its Schedule to Annex III; or (iii) agovernment other than the central or regional levels. (b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or (c) an amendment to any non-conforming measure referred to in subparagraph (a) to the extent that the amendment does not decrease the conformity of the measure as it existed: (i) immediately before the amendment with Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment), Article 10.5 (Market Access for Financial Institutions), or Article 10.9 (Senior Management and Boards of Directors);9 or (ii) on the date of entry into force of thisAgreement for the Party applying the non-conforming measure, with Article 10.6 (Cross-Border Trade). 2. Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment), Article 10.5 (Market Access for Financial Institutions), Article 10.6 (Cross-Border Trade), and Article 10.9 (Senior Management and Boards of Directors) do not apply to a measure that a Party adopts or maintains with respect to a sector, subsector, or an activity, as set out by that Party in Section B of its Schedule to Annex III. 9 For Indonesia, Annex 10-B(Transition for the Applicationof Article 10.10.1(c)(i) (Non-Conforming Measures)), applies. 3. A non-conforming measure, set out in a Party’s Schedule to Annex I-A, I-B, or II as not subject to Article 13.6 (Investment – National Treatment), Article 13.7 (Investment – Most-Favoured-Nation Treatment), Article 13.13 (Investment – Senior Management and Boards of Directors), Article 8.3 (Trade in Services – National Treatment), or Article 8.4 (Trade in Services – Most-Favoured-Nation Treatment), shall be treated as a non-conforming measure not subject to Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment) or Article 10.9 (Senior Management and Boards of Directors), as the case may be, to the extent that the measure, sector, subsector, or activity set out in the entry is covered by this Chapter. 4. In respect of intellectual property rights, a Party may derogate from Article 10.3 (National Treatment) and Article 10.4 (Most-Favoured-Nation Treatment) in a manner that is consistent with: (a) Article 14.10 (Intellectual Property – National Treatment); (b) the TRIPS Agreement, if the derogation relates to matters not addressed by Chapter 14 (Intellectual Property); or (c) an amendment of or waiver to the TRIPS Agreement in force for both Parties. 5. Within three years of thedate of entry into force of this Agreement, Section A of Indonesia’s Schedule to Annex III shall be amended in accordance with Article 26.2 (Final Provisions – Amendments) to include all non-conforming measures not otherwise listed in Section A of its Schedule to Annex III on the date of signature of this Agreement provided that any such amendment shall: (a) be limited to a measure that was non-conforming on December 1, 2024; and (b) not be any less favourable than Indonesia’s commitments in respect of financial services under an international trade agreement providing market access for financial services in force prior to the signing of this Agreement, except those committed among ASEAN Member States under the framework of the ASEAN Economic Community. Article 10.11: Exceptions 1. Notwithstanding any other provisions of this Chapter and Agreement except for Chapter 2 (National Treatment and Market Access for Goods), Chapter 3 (Rules of Origin and Origin Procedures), Chapter 4 (Customs Procedures and Trade Facilitation), Chapter 5 (Sanitary and Phytosanitary Measures), Chapter 6 (Technical Barriers to Trade), and Chapter 7 (Trade Remedies), a Party shall not be prevented from adopting or maintaining a measure for prudential reasons,10,11 including for the protection of investors, depositors, policy holders, or persons to whom a fiduciary duty is owed by a financial institution or cross-border financial service supplier or to ensure the integrity and stability of the financial system. If the measure does not conform with the provisions of this Agreement to which this exception applies, the measure shall not be used as a means of avoiding the Party’s commitments or obligations under those provisions. 2. Nothing in this Chapter, Chapter 8(Trade in Services), Chapter 11 (Telecommunications) including specifically Article 11.22 (Telecommunications – Relation to Other Chapters), Chapter 12 (Electronic Commerce), or Chapter 13 (Investment), applies to a non-discriminatory measure of general application taken by a central bank or monetary authority, or a financial services authority12, of a Party, in pursuit of monetary and related credit policies or exchange rate policies. This paragraph does not affect a Party’s obligations under Article 13.11 (Investment – Transfer of Funds) or Article 8.12 (Trade in Services – Payments and Transfers). 3. Notwithstanding Article 8.12 (Trade in Services –Payments and Transfers) and Article 13.11 (Investment – Transfer of Funds), as incorporated into this Chapter, a Party may prevent or limit a transfer by a financial institution or a cross-border financial service supplier to, or for the benefit of, an affiliate of or person related to that institution or supplier, through the equitable, non-discriminatory, and good faith application of a measure relating to maintenance of the safety, soundness, integrity, or financial responsibility of a financial institution or a cross-border financial service supplier. This paragraph does not prejudice any other provision of this Agreement that permits a Party to restrict transfers. 10 The Parties understand that theterm “prudential reasons” includes themaintenance ofthe safety, soundness, integrity, security, or financial responsibility of individual financialinstitutions or cross-border financial service suppliers, the safety,security,andfinancial and operational integrity ofpayment and clearing systems, and addressing threats to the integrity and security offinancial institutions or cross-border financial servicesuppliers, including threats arising from foreign interference. 11 For greater certainty,if a measurechallengedunder Section Dof Chapter 13 (Investment) is determined tohavebeen adopted ormaintainedby aPartyfor prudential reasons in accordancewith procedures in Article 10.24 (Investment Disputes in Financial Services), atribunal shall find that themeasure is notinconsistentwith theParty’s obligations in this Agreement and accordingly shall not award any damages with respect to thatmeasure. 12 The Parties confirm their understanding that, in the case of Indonesia, for the purposes of this Article, “financial services authority” refers to Otoritas Jasa Keuangan,or its successors. 4. For greatercertainty, nothing in this Chapter shall be construed to prevent a Party from adopting or enforcing a measure necessary to secure compliance with laws or regulations that are not inconsistent with this Chapter, including those relating to the prevention of deceptive and fraudulent practices or to deal with the effects of a default on financial services contracts, subject to the requirement that the measure is not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on investment in financial institutions orcross-border trade in financial services as covered by this Chapter. Article 10.12: Recognition 1. A Party may recognise a prudential measure of a non-Party in the application of a measure covered by this Chapter. That recognition may be: (a) accorded autonomously; (b) achieved through harmonisation or other means; or (c) based upon an agreement or arrangement with the non-Party. 2. A Party that accords recognition of prudential measures under paragraph 1(a) or (b)shall provide adequate opportunity to the other Party to demonstrate that circumstances exist in which there are or would be equivalent regulation, oversight, implementation of regulation, and, if appropriate, procedures concerning the sharing of information between the Parties. 3. If a Party accords recognition of prudential measures under paragraph 1(c) and the circumstances set out in paragraph 2 exist, that Party shall provide adequate opportunity to the other Party to negotiate accession to the agreement or arrangement, or to negotiate a comparable agreement or arrangement. 4. For greater certainty, nothing in Article 10.4 (Most-Favoured-Nation Treatment) requires a Party to accord recognition to prudential measures of the other Party. Article 10.13: Transparency 1. Annex 8-A (Development and Administration of Measures), Chapter 21 (Good Regulatory Practices and Regulatory Cooperation), and Section B (Transparency) of Chapter 22 (Transparency, Anti-Corruption, and Responsible Business Conduct) do not apply to a measure relating to this Chapter. 2. The Parties recognise that transparent regulations and policies governing the activities of financial institutions and cross-border financial service suppliers are important in facilitating their ability to gain access to and operate in each other’s markets. Each Party commits to promote regulatory transparency in financial services. 3. Each Party shall ensure that all measures of general application to which this Chapter applies are administered in a reasonable, objective, and impartial manner. 4. Each Party shall, to the extent practicable: (a) publish in advance any regulation that it proposes to adopt and the purpose of the regulation; and (b) provide interested persons and the other Partywith a reasonable opportunity to comment on that proposed regulation. 5. At the time that it adopts a final regulation, a Party should, to the extent practicable and in a manner consistent with its legal system or practice for adopting measures, address in writing the substantive comments received from interested persons with respect to the proposed regulation.13 6. To the extent practicable, each Party should allow a reasonable period of time between publication of a final regulation of general application and the date when it enters into effect. 7. Each Party shall ensure that the rules of general application adopted or maintained by a self-regulatory organisation of the Party are promptly published or otherwise made available in a manner that enables interested persons to become acquainted with them. 8. Each Party shall maintain or establish appropriate mechanisms for responding to inquiries from interested persons regarding measures of general application covered by this Chapter. Article 10.14 Processing of Applications 1. If a Party requires authorisation for the supply of a financial service, it shall ensure that its financial regulatory authorities: (a) to the extent practicable, permit an applicant to submit an application at any time throughout the year;14 (b) allow a reasonable period for the submission of an application if specific time periods for applications exist; (c) providetoservice suppliersand personsseeking to supply a service the information necessary to comply with the requirements and procedures for obtaining, maintaining, amending, and renewing that authorization; (d) to the extent practicable, provide an indicative timeframe for the processing of an application; (e) at the request of the applicant, provide without undue delay information concerning the status of the application; (f) endeavour to accept applications in electronic format; (g) accept copies of documents that are authenticated in accordance with the Party’s laws and regulations, in place of original documents, unless the financial regulatory authority requires original documents to protect the integrity of the authorization process; 13 For greater certainty,a Party may address those comments collectivelyonan official governmentwebsite. 14 A financial regulatory authorityis not required to start considering an applicationoutsideof itsofficial working hours and working days. (h) in the case of an application considered complete under the Party’s laws and regulations15, within a reasonable period of time and taking into account the available resources of the financial regulatory authority, after the submission of the application, ensure that: (i) the processing of an application is completed; and (ii) the applicant is informed of the decision concerning the application, to the extent possible in writing;16 (i) in the case of an application considered incomplete under the Party’s laws and regulations, within a reasonable period of time and taking into account the available resources of the financial regulatory authority, to the extent practicable: (i) inform the applicant that the application is incomplete; (ii) at the request of the applicant, identify the additional information required to complete the application and provide guidance on why the application is considered incomplete; and (iii) provide the applicant with the opportunity to provide the additional information that is required to complete the application;17 however, if none of the above is practicable, and the application is rejected due to incompleteness, ensure that the applicant is informed within a reasonable period of time; (j) if an application is rejected, to the extent practicable, either upon the financial regulatory authority’s own initiative or upon request of the applicant, inform the applicant of the reasons for rejection and, if applicable, the procedures for resubmission of an application. An applicant should not be prevented from submitting another application solely on the basis that an application has been previously rejected;18 and (k) ensure that authorisation, once granted, enters into effect without undue delay, subject to applicable terms and conditions.19 2. Each Party shall ensure, with respect to an authorisation fee charged by a financial regulatory authority, that the financial regulatory authority provides an applicant with a schedule of fees or information on how fee amounts are calculated, and that it does not use the fees as a means of avoiding the Party’s commitments or obligations under this Chapter.20 15 A financial regulatory authority may require that all information in an application is submitted in a specific format to consider itcomplete for processing. 16 “In writing” may include inelectronic form. 17 For greater certainty, this opportunity does not require a financial regulatory authority to provide an extension of a deadline. 18 A financial regulatory authoritymay require that the content ofthis applicationbe revised. 19 A financial regulatory authorityis not responsible for delay duetoreasons outside ofits competence. 20 An authorisation fee does not include a fee for the use of natural resources, payments for auction, tendering, or other non-discriminatory means ofawarding concessions, or mandatedcontributions touniversal serviceprovision. 3. If a Party adopts or maintains a measure with respect to an authorisation requirement or procedure for the supply of a financial service, it shall ensure that: (a) the financial regulatory authority reaches and administers its decisions in a manner independent from any supplier of the service for which authorisation is required;21 (b) such a measure isbased on objective and transparent criteria;22 (c) the procedure is impartial, and that the procedure is adequate for an applicant to demonstrate whether it meets the requirement, if such requirement exists; and (d) the procedure doesnot in itself unjustifiably prevent fulfilment of a requirement. Article 10.15: Self-Regulatory Organisations If a Party requires a financial institution or a cross-border financial service supplier of the other Party to be a member of, participate in, or have access to, a self-regulatory organisation in order to provide a financial service in or into its territory, it shall ensure that the self-regulatory organisation observes the obligations under Article 10.3 (National Treatment) and Article 10.4 (Most-Favoured-Nation Treatment). Article 10.16: Payment and Clearing Systems23 Under terms and conditions that accord national treatment, each Party shall grant a financial institution of the other Party established in its territory access to payment and clearing systems operated by public entities, and to official funding and refinancing facilities available in the normal course of ordinary business. This Article is not intended to confer access to the Party’s lender of last resort facilities. Article 10.17: Expedited Availability of Insurance Services TheParties recognise the importance of maintaining and developing regulatory procedures to expedite the offering of insurance services by licensed suppliers. If a Party maintains regulatory product approval procedures, that Party shall endeavour to maintain or improve those procedures. 21 This provisiondoes not mandate a particular administrative structure; it refers to the decision-making processand administering ofdecisions. 22 Criteria may include, amongother things, competence and the ability to supply a service, including to do soina manner consistentwith a Party’s regulatory requirements. A financial regulatory authority may assess the weight to be givento each criterion. 23 For greater certainty,a Partyneed not grant access under this Article to afinancial institution of theother Party established in its territory if this accessis not granted in likecircumstances to its own financial institutions. Article 10.18: Performance of Back-Office Functions 1. TheParties recognise that the performance of theback-officefunctions of a financial institution in its territory by the head office or an affiliate of the financial institution, or by an unrelated service supplier, either inside or outside its territory, is important to the effective management and efficient operation of that financial institution. While a Party may require a financial institution to ensure compliance with any domestic requirements applicable to those functions, the Parties recognise the importance of avoiding the imposition of arbitrary requirements on the performance of those functions. 2. For greatercertainty, nothing in paragraph 1 alters any other provision of this Agreement or prevents a Party from requiring a financial institution in its territory to retain certain back-office functions in that territory. Article 10.19: Transfer of Information Each Party shall allow a covered person to transfer information in electronic or other form, into and out of its territory, for data processing if the processing is required as part of the covered person’s ordinary course of business. Nothing in this Article restricts the right of a Party to adopt or maintain a measure to: (a) protect personal data, personal privacy, or the confidentiality of individual records and accounts; (b) require a financial institution to comply with a measure related to data management;24 or (c) require a financial institution to obtain prior authorisation from the relevant regulator to designate a particular enterprise as a recipient of this information, based on prudential considerations;25 provided that this right is not used as a means of avoiding the Party’s commitments or obligations under this Article. Article 10.20: Financial Services Committee 1. The Parties hereby establish a Financial Services Committee. The principal representative of each Party shall be an official of the Party’s authority responsible for financial services set out in Annex 10-C (Authorities Responsible for Financial Services). 2. The Financial Services Committee shall: (a) supervise the implementation of this Chapter and its further elaboration; 24 The Parties understand that a measurerelated to data management means a measurepertaining to the processes by which data is acquired, validated,protected, and stored. 25 For greater certainty,this requirement is withoutprejudice to othermeans of prudential regulation. (b) consider issues regarding financial services that are referred to it by a Party; and (c) participate in the dispute settlement procedures in accordance with Article 10.24 (Investment Disputes in Financial Services). 3. The Financial Services Committee shall meet as the Parties decide to assess the functioning of this Agreement as it applies to financial services. The Financial Services Committee shall inform the Joint Committee, established under Article 23.1 (Administrative and Institutional Provisions – Establishment of the Joint Committee) of the results of any meeting. Article 10.21: Review of Financial Services Commitments 1. The Financial Services Committee shall, within three years of the date ofentry into force of this Agreement, but no later than five years, and every three years thereafter, unless otherwise agreed, hold consultations to review the Parties’ respective non.conforming measures referred to in paragraphs 1 and 2 of Article 10.10 (Non-Conforming Measures). The Parties shall, without prejudice to the result, hold these consultations with a view to increasing the conformity of these non-conforming measures with this Agreement and further improving the Chapter commitments, including, but not limited to, the application of Article 10.10.1(c)(i) (Non-Conforming Measures). 2. The Financial Services Committee shall inform the Joint Committee of the results of these reviews. Article 10.22: Consultations 1. A Party may request, in writing, consultations with the other Party regarding any matter arising under this Agreement that affects financial services. The other Party shall give sympathetic consideration to the request to hold consultations. The consulting Parties shall report the results of their consultations to the Financial Services Committee. 2. Consultations under this Article shall include officials of the authorities specified in Annex 10-C (Authorities Responsible for Financial Services). 3. For greatercertainty, nothing in this Article shall be construed torequireaParty to derogate from its law regarding sharing of information between financial regulators or the requirements of an agreement or arrangement between financial authorities of the Parties, or to require a regulatory authority to take any action that would interfere with specific regulatory, supervisory, administrative, or enforcement matters. Article 10.23: Dispute Settlement 1. Chapter 24(Dispute Settlement) shall apply as modified by this Article to the settlement of disputes arising under this Chapter. 2. Consultations under Article 24.5 (Dispute Settlement –Consultations) shall include officials of the authorities specified in Annex 10-C (Authorities Responsible for Financial Services). 3. For disputes arising under this Chapter or a dispute in which a Party invokes Article 10.11 (Exceptions), when selecting panellists to compose a panel under Article 24.8 (Dispute Settlement – Panel Composition), each Party shall select panellists so that: (a) the chairperson has expertise or experience in financial services law or practice, such as the regulation of financial institutions, and meets the qualifications set out in Article 24.9 (Dispute Settlement – Qualifications of Panellists); and (b) each of the other panellists: (i) has expertise or experience in financial services law or practice, such as the regulation of financial institutions, and meets the qualifications set out in paragraph 1(b) through 1(f) of Article 24.9 (Dispute Settlement – Qualifications of Panellists); or (ii) meets the qualifications set out in Article 24.9(Dispute Settlement – Qualifications of Panellists). 4. If a Party seeks to suspend benefits in the financial services sector, a panel that reconvenes to make a determination on the proposed suspension of benefits, in accordance with Article 24.13 (Dispute Settlement – Non-Implementation – Suspension of Benefits), shall seek the views of financial services experts, as necessary. 5. Notwithstanding Article 24.13(Dispute Settlement –Non-Implementation – Suspension of Benefits), when a panel’s determination is that a Party’s measure is inconsistent with this Agreement and the measure affects: (a) only a sector other than the financial services sector, the complaining Party may not suspend benefits in the financial services sector; or (b) the financial services sector and another sector, the complaining Party may not suspend benefits in the financial services sector that have an effect that exceeds the effect of the measure in the complaining Party’s financial services sector. Article 10.24: Investment Disputes in Financial Services 1. If a dispute under Section D of Chapter 13 (Investment) involves a measure referred to in Article 10.2 (Scope), arbitrators shall be selected in accordance with Article 13.28 (Investment – Arbitrators) as modified in this Article, such that: (a) the presiding arbitrator has expertise or experience in financial services law or practice, such as the regulation of financial institutions, and meets the qualifications set out in Article 13.28 (Investment – Arbitrators); and (b) each of the other arbitrators of the Tribunal: (i) meets the qualifications set out in Article 13.28(Investment – Arbitrators); or (ii) hasexpertise or experience in financial services law or practice, such as the regulation of financial institutions, and meets the qualifications set out in paragraphs 3, 6, and 7 of Article 13.28 (Investment – Arbitrators). 2. If an investor of a Party submits a claim to arbitration under Section D of Chapter 13 (Investment), and the respondent Party asserts a defence under Article 10.11 (Exceptions) the respondent Party shall, no later than the date the Tribunal fixes for the respondent Party to submit its principal submission on the merits, such as the counter-memorial, submit in writing to the authorities responsible for financial services of the Party of the claimant, as set out in Annex 10-C (Authorities Responsible for Financial Services), a request for a joint determination by the authorities responsible for financial services of the Parties on the issue of whether and to what extent Article 10.11 (Exceptions) is a valid defence to the claim. The respondent Party shall provide the Tribunal, if constituted, a copy of its request. The Tribunal may proceed to hear the claim only as provided in paragraphs 4, 5, and 6. 3. With respect to the joint determination by the authorities of the Parties referred to in paragraph 2: (a) theauthorities of the Parties shall have 75 days from the date of the receipt of the request to exchange positions; (b) theauthorities of the Parties shall have 75 days from the exchange of positions in subparagraph (a) to make a joint determination; (c) ifa joint determination is made under subparagraph (b) the authorities of either Party shall transmit their decision to the disputing parties and the Tribunal, if constituted; and (d) ifthe authorities of the Parties have not made a joint determination under subparagraph (b), either Party may request, within 160 days of the receipt of the request for a joint determination, a panel to be established under Chapter 24 (Dispute Settlement) to decide whether and to what extent the paragraph asserted is a valid defence to the claim. A Party may request the establishment of a panel without having to request consultations under Article 24.5 (Dispute Settlement – Consultations). The panel shall transmit its decision to the disputing parties and to the Tribunal, if constituted. 4. If it is determined in the joint determination referred to in subparagraph 3(b) or the decision of the panel referred to in subparagraph 3(d) that the paragraph asserted is a valid defence to all parts of the claim, the claimant is deemed to have withdrawn its claim and to have discontinued the proceeding, with prejudice. The Tribunal, if constituted, shall take note of the discontinuance in an order, after which the authority of the Tribunal shall cease. 5. If it is determined in the joint determination referred to in subparagraph 3(b) or the decision of the panel referred to in subparagraph 3(d) that the paragraph asserted is only a valid defence to a part of the claim, the claimant is deemed to have withdrawn that part of the claim and to have discontinued that part of the proceedings, with prejudice. The Tribunal shall take note of the discontinuance of that part of the claim in an order and shall not proceed with the part of the claim for which the paragraph asserted is determined to be a valid defence. 6. If the authorities of the Parties do not make a joint determination under subparagraph 3(b) and no request for the establishment of a panel has been made under subparagraph 3(d), the Tribunal may decide the matter, provided that: (a) in addition to the disputing parties, the Party of the claimant may make oral or written submissions to the Tribunal regarding the issue of whether and to what extent the paragraph asserted is a valid defence to the claim prior to the Tribunal deciding this issue. Unless it makes a submission, the Party of the claimant shall be presumed, for the purposes of the arbitration, to take a position on the application of the paragraph asserted that is not inconsistent with that of the respondent Party; and (b) the Tribunal shall draw no inference regarding the application of the paragraph asserted from the fact that the authorities of the Parties have not made a joint determination as described in subparagraph 3(b). 7. For the purposes of this Article, the definitions of the following terms set out in Article 13.1 (Investment – Definitions) are incorporated, mutatis mutandis: “claimant”, “disputing parties”, “disputing party”, and “respondent Party”. ANNEX 10-A CROSS-BORDER TRADE 1. Canada26 Insurance and insurance-related services 1. Article 10.6(Cross-Border Trade) appliesto the cross-border supply of or trade in financial services, as defined in subparagraph (a) of the definition of “cross-border supply of financial services” in Article 10.1 (Definitions), with respect to: (a) insurance of risks relating to: (i) maritime transport and commercial aviation and space launching and freight (including satellites), with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods, and any liability deriving therefrom; and (ii) goods in international transit; (b) reinsurance and retrocession; (c) services auxiliary to insurance, as described in subparagraph (d) of the definition of “financial service” in Article 10.1 (Definitions); and (d) insurance intermediation, such as brokerageand agency, as referred to in subparagraph (c) of the definition of “financial service” in Article 10.1 (Definitions), of insurance of risks related to services listed in subparagraphs (a) and (b) of this paragraph. Banking and other financial services (excluding insurance) 2. Article 10.6(Cross-Border Trade) appliesto the cross-border supply of or trade in financial services, as defined in subparagraph (a) of the definition of “cross-border supply of financial services” in Article 10.1 (Definitions), with respect to: (a) provision and transfer of financial information, and financial data processing, as referred to in subparagraph (o) of the definition of “financial service” in Article 10.1 (Definitions); and (b) advisory and otherauxiliary financial services, and credit reference and analysis, excluding intermediation, relating to banking and other financial services, as referred to in subparagraph (p) of the definition of “financial service” in Article 10.1 (Definitions). 26 For greater certainty,Canada requiresthat across-border financial services supplier maintain alocal agent and records in Canada. Portfolio Management Services 3. Article 10.6(Cross-Border Trade) appliesto the cross-border supply of or trade in financial services, as defined in subparagraph (a) of the definition of “cross-border supply of financial services” in Article 10.1 (Definitions), with respect to the following services if they are provided to a collective investment scheme located in Canada: (a) investment advice; and (b) portfolio management services; excluding: (i) trustee services;and (ii) custodial services and execution services that are not related to managing a collective investment scheme. 4. For the purposes of paragraph 3, in Canada, a collective investment scheme means, an “investment fund”as defined under the relevant Securities Act.27 2. Indonesia Non-Banking Financial Services 5. Article 10.6 (Cross-Border Trade) appliesto the cross-border supply of or trade in financial services, as defined in subparagraph (a) of the definition of “cross-border trade in financial services or cross-border supply of financial services” in Article 10.1 (Definitions), with respect to reinsurance (including retrocession) services, as referred to in subparagraph (b) of the definition of “financial service” in Article 10.1 (Definitions);28 Banking 6. Article 10.6 (Cross-Border Trade) appliesto the cross-border supply of or trade in financial services, as defined in subparagraph (a) of the definition of “cross-border trade in financial services or cross-border supply of financial services” in Article 10.1 (Definitions), with respect to: (a) financial leasing services relating to banking and other financial services, as referred to in subparagraph (g) of the definition of “financial service” in Article 10.1 (Definitions). (b) Factoring services and consumer finance services relating to banking and other financial services, as referred to in subparagraph (f) of the definition of “financial service” in Article 10.1 (Definitions). 27 In Canada,a financial institutionorganizedin the territory of another Party canonly provide custodial services to a collective investment schemelocated in Canada if the financial institutionhas shareholders’ equity equivalent to at least CAD $100 million. 28 A reinsurance service supplier from the other Party must berated a minimum of BBB by Standardand Poor’s,or its equivalent. ANNEX 10-B TRANSITION FOR THE APPLICATION OF ARTICLE 10.10.1(c)(i) (NON-CONFORMING MEASURES) 1. For Indonesia, Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment), Article 10.5 (Market Access for Financial Institutions), and Article 10.9 (Senior Management and Boards of Directors) does not apply to an amendment to any existing non-conforming measure referred to in Article 10.10.1(a) (Non-Conforming Measures) to the extent that the amendment does not decrease the conformity of the measure as it existed on the date of entry into force of this Agreement. 2. Notwithstanding paragraph 1, Article 10.10.1(c)(i) (Non-Conforming Measures) of this Chapter appliesto Indonesia as of the date agreed by the Parties further to Article 10.21 (Review of Financial Services Commitments), or as of the date Indonesia enters into a free trade agreement that contains a provision similar to Article 10.10.1(c)(i) (Non-Conforming Measures), whichever comes first. 3. During the transition period provided in this Annex, Indonesia shall not withdraw a right or benefit from: (a) a financial institution of the other Party; or (b) investors of the other Party, and investments of those investors, in financial institutions in Indonesia’s territory, in reliance on which such persons have been permitted, licensed, or otherwise authorised to invest in financial institutions or supply a financial service, through an amendment to any non-conforming measure referred to in Article 10.10.1(a) (Non-Conforming Measures) that decreases the conformity of the measure, as it existed immediately before the amendment. ANNEX 10-C AUTHORITIES RESPONSIBLE FOR FINANCIAL SERVICES The authorities for each Party responsible for financial services are: (a) for Canada, the Department of Finance of Canada; and (b) forIndonesia, the Ministry of Finance, Otoritas Jasa Keuangan, and Bank Indonesia. CHAPTER 11 TELECOMMUNICATIONS Article 11.1: Definitions For the purposes of this Chapter: cost-oriented means based on cost, and may include a reasonable profit, and may involve different cost methodologies for different facilities or services; end-user means a final consumer of, or subscriber to, a public telecommunications service, including a service supplier other than a supplier of public telecommunications services; enterprise means an “enterprise” as defined in Article 1.5 (Initial Provisions and General Definitions – General Definitions) and a branch of an enterprise; essential facilities means facilities of a public telecommunications network or service that: (a) are exclusively or predominantly provided by a single or limited number of suppliers; and (b) cannot feasibly be economically or technically substituted in order to supply a service; interconnection means linking with suppliers providing public telecommunications networks or services to allow the users of one supplier to communicate with users of another supplier and to access services provided by another supplier; leased circuits means telecommunications facilities between two or more designated points that are set aside for the dedicated use of, or availability to, particular users; licence means any authorisation that a Party may require of a person, in accordance with its laws and regulations, in order for that person to offer a telecommunications network or service, including concessions, permits, or registrations; major supplier means a supplier that has the ability to materially affect the terms of participation (having regard to price and supply) in the relevant market for public telecommunications networks or services as a result of: (a) control over essential facilities; or (b) the use of its position in the market; network element means a facility or equipment used in supplying a public telecommunications service, including features, functions, and capabilities provided by means of that facility or equipment; non-discriminatory means treatment no less favourable than that accorded to any other user of like public telecommunications networks or services in like circumstances; physical co-location means access to space in order to install, maintain, or repair equipment at premises owned or controlled and used by a major supplier to supply public telecommunications services; public telecommunications network means public telecommunications infrastructure used to provide public telecommunications services between and among defined network termination points; public telecommunications service means any telecommunications service required, explicitly or in effect, by a Party to be offered to the public generally. Such services may include telegraph, telephone, telex, and data transmission typically involving the real-time transmission of customer-supplied information between two or more defined points without any end-to-end change in the form or content of the customer’s information; reference interconnection offer means an interconnection offer extended by a major supplier and filed with, approved by, or determined by a telecommunications regulatory body that sufficiently details the terms, rates and conditions for interconnection so that a supplier of a public telecommunications service that is willing to accept it may obtain interconnection with the major supplier on that basis, without having to engage in negotiations with the major supplier concerned; telecommunications means the transmission and reception of signals by electromagnetic means; telecommunications regulatory body means a body or bodies responsible for the regulation of telecommunications; and user means an end-user or a supplier of public telecommunications networks or services. Article 11.2: Scope of Application 1. This Chapter applies to: (a) a measure relating to access to and use of public telecommunications networks or services; (b) a measure relating to an obligation of a supplier of public telecommunications networks or services; and (c) any other measure relating to public telecommunications networksor services. 2. ThisChapter does not apply to a measureaffecting the cable or broadcast distribution of radio or television programming, except to ensure that a cable or broadcast service supplier has access to and use of public telecommunications networks or services. 3. Nothing in this Chapter shall be construed to: (a) requirea Party to authorise an enterprise of the other Party to establish, construct, acquire, lease, operate, or supply a telecommunications network or service, other than as specifically provided for in the former Party’s commitments under Chapter 8 (Trade in Services); (b) require a Party to compel an enterprise exclusively engaged in the broadcast or cable distribution of radio or television programming to make available its broadcast or cable facilities as a public telecommunications network; (c) prevent a Party from prohibiting a person who operates a private network from using its private network to supply a public telecommunications network or service to third persons; or (d) prevent a Party from requiring a supplier of public telecommunications networks or services to comply with a Party’s measures related to the regulation of public networks or services, provided that those measures are not used as a means of avoiding the Party’s obligations under this Chapter. Article 11.3: Approaches to Regulation 1. The Parties recognise the value of competitive markets to deliver a wide choice in the supply of telecommunications networks or services and to enhance consumer welfare, and that economic regulation may not be needed if there is effective competition or if a service is new to a market. Accordingly, the Parties recognise that regulatory needs and approaches differ market by market, and that each Party may determine how to implement its obligations under this Chapter. 2. In this respect, the Parties recognise that a Party may: (a) engage in direct regulation either in anticipation of an issue that the Party expects may arise or to resolve an issue that has already arisen in the market; (b) rely on the role of market forces, particularly with respect to market segments that are, or are likely to be, competitive or that have low barriers to entry, such as services provided by suppliers of telecommunications services that do not own network facilities; or (c) use any other appropriate means that benefit the long-term interest of end.users. Article 11.4: Access to and Use of Public Telecommunications Networks or Services 1. Each Party shall ensure that an enterprise of the other Party is accorded access to and use of public telecommunications networks or services, including leased circuits, offered in its territory or across its borders, and on terms and conditions that are reasonable and non-discriminatory. This obligation shall be applied, among other things, through paragraphs 2 through 6. 2. Subject to paragraphs 5 and 6, each Party shall ensure that an enterprise of the other Party is permitted to: (a) purchase or lease, and attach terminal or other equipment that interfaces with a public telecommunications network and that is necessary to supply its services; (b) connect leased or owned circuits with public telecommunications networks or services or with circuits leased or owned by another service supplier; (c) use operating protocols of its choice other than as necessary to interface with public telecommunications networks or services; (d) perform switching, signalling, processing, and conversion functions; and (e) provide services to individual or multiple end-users over leased or owned circuits. 3. Each Party shall ensure that anenterprise of the other Party may use public telecommunications networks or services for the movement of information in its territory or across its borders, including for intra-corporate communications of those service suppliers, and for access to information contained in a database or otherwise stored in machine-readable form in the territory of any Party. 4. Notwithstanding paragraph 3, a Party may take measures that are necessary to ensure the security and confidentiality of messages and to protect the personal information of end-users of public telecommunications networks or services, provided that those measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade in services. 5. Each Party shall ensure that no condition is imposed on access to and use of public telecommunications networks or services, other than as necessary to: (a) safeguard the public service responsibilities of suppliers of public telecommunications networks or services, in particular their ability to make their networks or services available to the public generally; or (b) protect the technical integrity of public telecommunications networks or services. 6. Provided that they satisfy the criteria set out in paragraph 5, conditions for access to and use of public telecommunications networks or services may include: (a) a requirement to use a specified technical interface, including an interface protocol, for connection with public telecommunications networks or services; (b) a requirement, if necessary, for the interoperability of public telecommunications networks or services; (c) type approval of terminal or other equipment that interfaces with public telecommunications networks and technical requirements relating to the attachment of that equipment to those networks; (d) a restriction on connection of leased or owned circuits with public telecommunications networks or services or with circuits leased or owned by other service suppliers; or (e) a requirement for notification and licensing. Article 11.5: Competitive Safeguards 1. Each Party shall adopt or maintain appropriate measures for the purpose of preventing suppliers that, alone or together, are a major supplier in its territory from engaging in or continuing anti-competitive practices. 2. The anti-competitive practices referred to in paragraph 1 include, in particular: (a) engaging in anti-competitive cross-subsidisation; (b) using information obtained from competitors with anti-competitive results; and (c) not making available to other suppliers of public telecommunications networks or services, on a timely basis, technical information about essential facilities and commercially relevant information that are necessary for them to provide services. 3. For greater certainty, nothing in this Article prevents a Party from maintaining measures for the purpose of preventing anti-competitive practices by suppliers of public telecommunications networks or services that are not major suppliers. Article 11.6: Treatment by Major Suppliers Each Party shall ensure that a major supplier in its territory accords to suppliers of public telecommunications networks or services of the other Party treatment no less favourable than that major supplier accords in like circumstances to its subsidiaries and affiliates, or non-affiliated service suppliers, regarding: (a) the availability, provisioning, rates, or quality of like public telecommunications networks or services; and (b) the availability of technical interfaces necessary for interconnection. Article 11.7: Resale Each Party may determine, in accordance with its laws and regulations, which public telecommunications services must be offered for resale by a major supplier based on the need to promote competition or to benefit the long-term interests of end-users. If a Party has determined that a service must be offered for resale by a major supplier, that Party shall ensure that any major supplier in its territory does not impose unreasonable or discriminatory conditions or limitations on the resale of that service. Article 11.8: Interconnection -Obligations Relating to Suppliers of Public Telecommunications Networks or Services 1. Each Party shall ensure that a supplier of public telecommunications networks or services in its territory provides interconnection with the suppliers of public telecommunications networks or services of the other Party on reasonable and non.discriminatory terms and conditions. 2. In carrying out paragraph 1, each Party shall ensure that suppliers of public telecommunications networks or services in its territory protect the confidentiality of commercially sensitive or confidential information of, or relating to, users of public telecommunications services obtained as a result of interconnection arrangements and that those suppliers only use that information for the purposes of providing these services. Article 11.9: Interconnection -Obligations Relating to Major Suppliers 1. Each Party shall ensure that a major supplier in its territory provides interconnection for the facilities and equipment of suppliers of public telecommunications networks or services of the other Party at any technically feasible point in the major supplier’s network. That interconnection shall be provided: (a) under non-discriminatory terms, conditions (including technical standards and specifications), and rates; (b) of a quality no less favourable than that provided by the major supplier for its own like services, for like services of non-affiliated service suppliers, or for its subsidiaries or other affiliates; (c) on a timely basis, on terms,conditions (including technical standards and specifications), and at cost-oriented rates, that are transparent, reasonable (having regard to economic feasibility), and sufficiently unbundled so that the supplier of public telecommunications networks or services of the other Party need not pay for network components or facilities that it does not require for the services to be provided; and (d) on request, at points in addition to the network termination points offered to the majority of suppliers of public telecommunications networks or services, subject to charges that reflect the cost of construction of necessary additional facilities. 2. Each Party shall ensure that a major supplier in its territory provides suppliers of public telecommunications services of the other Party with the opportunity to interconnect their facilities and equipment with those of the major supplier through at least one of the following options: (a) a reference interconnection offer or any other interconnection offer containing the rates, terms, and conditions that the major supplier offers generally to suppliers of public telecommunications services; (b) the terms and conditions of an interconnection agreement that is in effect; or (c) a new interconnection agreement through commercial negotiation. 3. Each Party shall ensure that the procedures applicable for interconnection to a major supplier are made publicly available. 4. Each Party shall ensure that a major supplier in its territory makes publicly available either its interconnection agreements or reference interconnection offer. Article 11.10: Provisioning and Pricing of Leased Circuits Services Each Party shall, subject to technical feasibility, ensure that a major supplier in its territory provides suppliers of public telecommunications networks or services of the other Party leased circuits services that are public telecommunications services on a timely basis, on non-discriminatory terms, conditions (including technical standards and specifications), and at rates, that are reasonable (having regard to economic feasibility), and based on a generally available offer. Article 11.11: Co-location 1. Each Party shall ensure that a major supplier that has control over essential facilities in its territory allows suppliers of public telecommunications networks or services of the other Party in the Party’s territory physical co-location of their equipment necessary for interconnection or access to unbundled network elements based on a generally available offer on a timely basis, and on terms, conditions (including technical feasibility and space availability where applicable), and at rates, that are reasonable, non.discriminatory, and transparent. 2. Where physical co-location is not practical for technical reasons or because of space limitations, each Party shall endeavour to ensure that a major supplier in its territory provides an alternative solution, on a timely basis, and on terms and conditions and at rates, that are reasonable, non-discriminatory, and transparent. 3. A Party may determine, in accordance with its laws and regulations, which premises owned or controlled by major suppliers in its territory are subject to paragraphs 1 and 2, having regard to factors such as the state of competition in the market where co.location is required, and whether those premises can feasibly be economically or technically substituted in order to provide a competing service. Article 11.12: International Submarine Cable Systems 1. If a Party has authorised a major supplier in its territory to operate an international submarine cable system as a public telecommunications network or service, that Party shall ensure that the major supplier accords a supplier of public telecommunications networks or services of the other Party access to the international submarine cable system on reasonable and non-discriminatory terms and conditions. 2. A Party may determine the point at which access to the international submarine cable system is to be provided. Article 11.13: Unbundling of Network Elements Each Party shall ensure that a major supplier in its territory offers to public telecommunications service suppliers access to network elements on an unbundled basis on terms, conditions, and at rates, that are reasonable and non-discriminatory for the supply of public telecommunications services. A Party may determine, in accordance with its laws and regulations, the network elements required to be made available in its territory, and the suppliers that may obtain those elements. Article 11.14: Access to Poles, Ducts, Conduits, and Rights-of-Way 1. Each Party shall endeavour to ensure that a major supplier in its territory provides access to poles, ducts, conduits, and rights-of-way or any other structures as determined by the Party, owned or controlled by the major supplier, to suppliers of public telecommunications services of the other Party in the Party’s territory on a timely basis, and on terms, conditions, and at rates, that are reasonable, non-discriminatory, and transparent, subject to technical feasibility. 2. A Party may determine, in accordance with its laws and regulations, the poles, ducts, conduits, rights-of-way, or any other structures to which it requires major suppliers in its territory to provide access in accordance with paragraph 1. When the Party makes this determination, it shall take into account factors such as the competitive effect of lack of this access, whether these structures can be substituted in an economically or technically feasible manner in order to provide a competitive service, or other specified public interest factors. Article 11.15: Independent Telecommunications Regulatory Body 1. Each Party shall ensure that its telecommunications regulatory body is separate from, and not accountable to, any supplier of public telecommunications services. 2. Each Party shall ensure that the regulatory decisions of, and the procedures used by, its telecommunications regulatory body are impartial with respect to all market participants. Article 11.16: Universal Service Each Party has the right to define the kind of universal service obligations it wishes to maintain. These obligations shall not be regarded as anti-competitive per se, provided that they are administered in a transparent, non-discriminatory, and competitively neutral manner, and are not more burdensome than necessary for the kind of universal service defined by the Party. Article 11.17: Licensing 1. If a Party requires a supplier of public telecommunications services to have a licence, the Party shall ensure the public availability of: (a) all the licensing criteria and procedures that it applies; (b) the period that it normally requires to reach a decision concerning an application for a licence; and (c) the terms and conditions of all licences in effect. 2. The Party shall notify an applicant of the outcomeof its application without undue delay after a decision has been taken. 3. Each Party shall ensure that, upon request, an applicant or a licensee is provided with the reasons for the: (a) denial of a licence; (b) imposition of supplier-specific conditions on a licence; (c) refusal to renew a licence; or (d) revocation of a licence. Article 11.18: Allocation and Use of Scarce Resources 1. Each Party shall administer its procedures for the allocation and use of scarce resources related to telecommunications, including frequencies, numbers, and rights-of.way, in an objective, timely, transparent, and non-discriminatory manner. 2. Each Party shall make publicly available the current state of frequency bands allocated to specific uses but shall not be required to provide detailed identification of frequencies that are allocated for specific government uses. 3. For greatercertainty, a measure of a Party allocating and assigning spectrum and managing frequency is not per se inconsistent with Article 8.5 (Trade in Services -Market Access). Accordingly, each Party retains the right to establish and apply spectrum and frequency management policies that may have the effect of limiting the number of suppliers of public telecommunications networks or services, provided that the Party does so in a manner consistent with other provisions of Chapter 8 (Trade in Services). This includes the ability to allocate frequency bands, taking into account current and future needs and spectrum availability. 4. When making a spectrum allocation for commercial telecommunications services, each Party shall endeavour to rely on an open and transparent process that considers the public interest, including the promotion of competition. Each Party shall endeavour to rely generally on market-based approaches in assigning spectrum for terrestrial commercial telecommunications services, if appropriate. Accordingly, each Party may use mechanisms such as auctions, administrative incentive pricing, or unlicensed use, if appropriate, to assign spectrum for commercial use. Article 11.19: Transparency 1. Further to Article 22.2 (Transparency, Anti-Corruption, and Responsible Business Conduct – Publication), each Party shall endeavour to ensure that when its telecommunications regulatory body seeks input on a proposal for a law or regulation, that body provides relevant suppliers of public telecommunications networks or services of the other Party operating in its territory an opportunity to comment. That body shall: (a) make the proposal public or otherwise available to any interested persons; (b) include an explanation of the purpose of and reasons for the proposal; (c) provide interested persons with adequate public notice of the ability to comment and reasonable opportunity to comment; (d) to the extent practicable, make publicly available all relevant comments filed with it; and (e) respond to all significant and relevant issues raised in comments filed, in the course of issuance of the final regulation.1 2. Each Party shall ensure that relevant information on conditions affecting access to and use of public telecommunications networks or services is publicly available, including: (a) tariffs and other terms and conditions of service; (b) specifications of technical interfaces with those networks or services; (c) conditions for attaching terminal or other equipment; and (d) requirements for notification or licensing, if any. Article 11.20: Resolution of Telecommunications Disputes 1. Each Party shall ensure that a supplier of public telecommunications networks or services of the other Party may have timely recourse to a telecommunications regulatory body or dispute resolution body of the Party to resolve disputes with a supplier of a public telecommunications network or service relating to matters covered by this Chapter in accordance with its laws and regulations. 2. Each Party shall ensure that any supplier of public telecommunications networks or services aggrieved by a final determination or decision of its relevant telecommunications regulatory body may obtain a review of that determination or decision in accordance with its laws and regulations. 1 For greater certainty,a Party may consolidate its responses to thecomments received from interested persons. 3. A Party shall notpermit the making of an application for review to constitute grounds for non-compliance with the determination or decision of its telecommunications regulatory body, unless its relevant body determines otherwise. Article 11.21: Relation to International Organisations The Parties recognise the importance of international standards for global compatibility and interoperability of telecommunications networks or services and undertake to promote those standards through the work of relevant international bodies. Article 11.22: Relation to Other Chapters In the event of any inconsistency between this Chapter and any other Chapter of this Agreement, this Chapter shall prevail to the extent of the inconsistency. CHAPTER 12 ELECTRONIC COMMERCE Article 12.1: Definitions For the purposes of this Chapter: computing facilities means computer servers and storage devices for processing or storing information for commercial use; covered person means: (a) a covered investment as defined in Article 13.1 (Investment – Definitions); (b) an investor of a Party as defined in Article 13.1 (Investment – Definitions); or (c) a service supplier of aParty as defined in Article 8.1 (Trade in Services – Definitions), but does not include a “covered person”as defined in Article 10.1 (Financial Services – Definitions)or a credit reporting body; electronic authentication means the process or act of verifying: (a) the identity of a party to an electronic communication or transaction; and (b) an electronic statement or claim in an electronic communication or transaction; to ensure the integrity of, and establish a level of confidence in, the electronic communication or transaction; personal data means any data, including information, relating to an identified or identifiable natural person; trade administration documents means forms issued or controlled by a Party that must be completed by or for an importer or exporter in relation to the import or export of goods; transmitted electronically means a transmission to an electronic address using any electromagnetic means; and unsolicited commercial electronic message means a message transmitted electronically for commercial or marketing purposes without the consent of the recipient or despite the explicit rejection of the recipient. Article 12.2: Scope and General Provisions 1. The Parties recognise the economic growth and opportunities provided by electronic commerce and the importance of frameworks that promote consumer confidence in electronic commerce and of facilitating its use and development. 2. This Chapter applies to measures adopted or maintained by a Party that affect trade by electronic means. 3. This Chapter does not apply: (a) to government procurement; or (b) except for Article 12.15 (Open Government Data), to information held or processed by or on behalf of a Party, or measures related to that information, including measures related to its collection. 4. For greatercertainty, measures affecting the supply of a service delivered or produced electronically are subject to the obligations contained in the relevant provisions of: (a) Chapter 8(Trade in Services); (b) Chapter 10 (Financial Services); and (c) Chapter 13 (Investment), including any exceptions or non-conforming measures set out in this Agreement that are applicable to those obligations. 5. To the extent that a measure referred to in paragraph 4 is adopted or maintained in accordance with Article 8.7 (Trade in Services – Reservations), Article 10.10 (Financial Services – Non-Conforming Measures), Article 13.18 (Investment – Non-Conforming Measures and Exceptions), or any exception that is applicable to the obligations in Chapter 8 (Trade in Services), Chapter 10 (Financial Services), or Chapter 13 (Investment), it does not give rise to a violation of Article 12.10 (Cross-Border Transfer of Information by Electronic Means), Article 12.11 (Location of Computing Facilities), or Article 12.14 (Source Code). Article 12.3: Cooperation Recognising the global nature of electronic commerce, each Party shall endeavour to: (a) work together to assist micro, small, and medium-sized enterprises to overcome obstacles to its use; (b) exchange information and share experiences on regulations, policies, enforcement, and compliance regarding electronic commerce, such as: (i) personal data protection; (ii) online consumer protection, including means for consumer redress and building consumer confidence; (iii) unsolicited commercial electronic messages; (iv) security in electronic communications; and (v) authentication. (c) exchange information and share views on consumer access to products and services offered online; (d) participate actively in regional and multilateral fora to promote the development of electronic commerce, including in relation to the development and application of international standards for electronic commerce; and (e) encourage development by the private sector of methods of self-regulation that foster electronic commerce, including codes of conduct, model contracts, guidelines, and enforcement mechanisms. Article 12.4: Paperless Trading 1. Each Party shall endeavour to make trade administration documents available to the public in electronic form. 2. Each Party shall accept electronic versions of its trade administration documents as the legal equivalent of paper documents except where: (a) there is a domestic or international legal requirement to the contrary; or (b) doing so would reduce the effectiveness of the trade administration process. 3. The Parties shall cooperate bilaterally and in international fora to enhance the acceptance of electronic versions of trade administration documents. Article 12.5: Electronic Authentication and Electronic Signatures 1. Except in circumstances otherwise provided for under its law, a Party shall not deny the legal validity of a signature solely on the basis that the signature is in electronic form. 2. Taking into account international norms for electronic authentication, each Party shall: (a) permit participants in electronic transactions to determine the appropriate authentication methods for their electronic transactions; (b) not limit the recognition of authentication methods; and (c) permit participants in electronic transactions to have the opportunity to demonstrate that their electronic transactions comply with the Party’s laws and regulations. 3. Notwithstanding paragraph 2, each Party may require that, for a particular category of electronic transactions, the method of electronic authentication meets certain performance standards or is certified by an authority accredited in accordance with its laws and regulations. 4. TheParties shall encourage the use of interoperable electronic authentication. Article 12.6: Online Consumer Protection 1. The Parties recognise the importance of adopting and maintaining transparent and effective measures to protect consumers from fraudulent and deceptive commercial activities when they engage in electronic commerce. 2. For the purposes of this Article, “fraudulent and deceptivecommercial activities” refers to those commercial practices that cause actual harm to consumers, or that pose an imminent threat of that harm if not prevented, such as: (a) a practice of making misrepresentations of material fact, including implied factual misrepresentations, that cause significant detriment to the economic interests of misled consumers; (b) a practice of failing to deliver products or provide services to consumers after the consumers are charged; or (c) a practice of charging ordebiting consumers’ financial, telephone,or other accounts without authorisation. 3. Each Party shall adopt or maintain laws or regulations to provide protection for consumers using electronic commerce against fraudulent and deceptive commercial activities that cause harm or potential harm. 4. The Parties recognise the importance of cooperation between theirrespective national consumer protection agencies or other relevant bodies on activities related to cross-border electronic commerce in order to enhance consumer welfare. 5. Each Party shall publish information on the consumer protection it provides to users of electronic commerce, including how: (a) consumers can pursue remedies; and (b) businessescan comply with, or acquire information on, any legal requirements. Article 12.7: Online Personal Data Protection 1. The Parties recognise the economic and social benefits of protecting the personal data of users of electronic commerce and the contribution that this makes to enhancing consumer confidence in electronic commerce. 2. To this end, each Party shall adopt or maintain a legal framework that provides for the protection of the personal data of the users of electronic commerce. In the development of its legal framework for the protection of personal data, each Party shall take into account principles and guidelines of relevant international bodies. 3. Each Party shall endeavour to adopt non-discriminatory practices in protecting users of electronic commerce from personal data protection violations occurring within its jurisdiction. 4. Each Party shall publish information on the personal data protection it provides to users of electronic commerce, including how: (a) individuals can pursue remedies; and (b) businesses can comply with any legal requirements. Article 12.8: Unsolicited Commercial Electronic Messages 1. Each Party shall adopt or maintain measures regarding unsolicited commercial electronic messages that: (a) require suppliers of unsolicited commercial electronic messages to facilitate the ability of recipients to prevent ongoing reception of those messages; (b) require the consent, as specified according to the laws and regulations of each Party, of recipients to receive commercial electronic messages; or (c) otherwise provide for the minimisation of unsolicited commercial electronic messages. 2. Each Party shall provide recourse against suppliers of unsolicited commercial electronic messages that do not comply with the measures adopted or maintained pursuant to paragraph 1. 3. The Parties shall endeavour to cooperate in appropriate cases of mutual concern regarding the regulation of unsolicited commercial electronic messages. 4. A Party shall apply this Article to unsolicited commercial electronic messages delivered through one or more modes of delivery, including Short Message Service (“SMS”), instant messaging, or electronic mail. Each Party shall endeavour to adopt or maintain measures consistent with this Article that apply to other modes of delivery of unsolicited commercial electronic messages. Article 12.9: Domestic Regulatory Frameworks 1. Each Party shall maintain a legal framework governing electronic transactions consistent with the principles of the UNCITRAL Model Law on Electronic Commerce 1996 or the United Nations Convention on the Use of Electronic Communications in International Contracts, doneat New York on 23 November 2005. 2. Each Party shall endeavour to avoid any unnecessary regulatory burden on electronic transactions. Article 12.10: Cross-Border Transfer of Information by Electronic Means 1. The Parties recognise that each Party may have its own regulatory requirements concerning the transfer of information by electronic means. 2. A Party shall not prevent cross-border transfer of information by electronic means, including personal data, when this activity is for the conduct of the business of a covered person. 3. This Articledoes not prevent a Party from adopting or maintaining: (a) a measure inconsistent with paragraph 2 that is necessary to achievea legitimate public policy objective, provided that the measure is not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade; or (b) a measure that it considers necessary for the protection of its essential security interests. That measure, if adopted or maintained, shall not be disputed by the other Party. Article 12.11: Location of Computing Facilities 1. The Parties recognise that each Party may have its own measures regarding the use or location of computing facilities, including requirements that seek to ensure the security and confidentiality of communications. 2. A Party shall notrequirea covered person to use or locate computing facilities in that Party’s territory as a condition for conducting business in that territory. 3. This Article does not prevent a Party from adopting or maintaining: (a) a measure inconsistent with paragraph 2that is necessary to achievea legitimate public policy objective, provided that the measure is not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade; or (b) a measure that it considers necessary for the protection of its essential security interests. That measure, if adopted or maintained, shall not be disputed by the other Party. Article 12.12: Customs Duties 1. Each Party shall maintain its current practice of not imposing customs duties on electronic transmissions between the Parties. 2. The practice referred to in paragraph 1 is in accordance with theWTO Ministerial Decision (WT/MIN (24)/38), adopted on 2 March 2024, in relation to the Work Programme on Electronic Commerce. 3. Each Party may adjust its practice referred to in paragraph 1 with respect to any further outcomes in WTO Ministerial Decisions on customs duties on electronic transmissions within theframework of the Work Programme on Electronic Commerce. 4. The Parties shall review this Article in light of any further WTO Ministerial Decisions in relation to the Work Programme on Electronic Commerce. 5. For greatercertainty, paragraph 1 does not preclude a Party from imposing taxes, fees, or other charges on electronic transmissions, provided that those taxes, fees, or charges are imposed in a manner consistent with this Agreement. Article 12.13: Principles on Access to and Use of the Internet for Electronic Commerce Subject to applicable laws and regulations, the Parties recognise that it is beneficial for consumers in their territories to be able to: (a) access and use services and applications of a consumer’s choice available on the Internet, subject to reasonable network management; and (b) connect theend-user devices of a consumer’s choice to theInternet. Article 12.14: Source Code 1. A Party shall not require the transfer of, or access to, source code of software owned by a person of the other Party as a condition for the import, distribution, sale, or use of that software, or of products containing that software, in its territory. 2. This Article does not preclude a regulatory body or judicial authority of a Party from requiring a person of the other Party to preserve and make available the source code of software for a specific investigation, inspection, examination, enforcement action, or judicial proceeding1, subject to safeguards against unauthorised disclosure. Article 12.15: Open Government Data 1. The Parties recognise that facilitating public access to and use of government information fosters economic and social development, competitiveness, and innovation. 2. To the extent that a Party chooses to make government information, including data, available to the public, it shall endeavour to ensure that the information is in a machine-readable, open format and can be searched, retrieved, used, reused, and redistributed. 3. The Parties shall endeavour to cooperate to identify ways in which each Party can expand access to and use of government information, including data, that the Party has made public, with a view to enhancing and generating business opportunities, especially forsmall and medium-sized enterprises. Article 12.16: Cyber Security The Parties recognise the importance of: (a) building and maintaining the capabilities of their national entities responsible for computer security incident response, including through exchange of best practices; and (b) using existing collaboration mechanisms to cooperate on matters related to cyber security. 1 This disclosure shall not be construed to negatively affect the software source code’s status as a trade secret, if that status is claimed by the tradesecret owner.

Chapter 13. INVESTMENT

Section A. Definitions

Article 13.1. Definitions

For the purposes of this Chapter:

algorithm means a defined sequence of steps, taken to solve a problem or obtain a result;

claimant means an investor of a Party that makes a claim under Article 13.25 (Submission of a Claim to Arbitration);

confidential information means confidential business information or information that is privileged or otherwise protected from disclosure under the law of a Party;

disputing parties means the claimant and the respondent Party;

disputing party means either the claimant or the respondent Party;

enterprise means an enterprise as defined in Article 1.5 (Initial Provisions and General Definitions - General Definitions) and a branch (1)  of an enterprise;

existing means in effect on the date of entry into force of this Agreement;

ICSID means the International Centre for Settlement of Investment Disputes;

ICSID Additional Facility Rules means the Rules Governing the Additional Facility for the Administration of Proceedings by the Secretariat of the International Centre for Settlement of Investment Disputes in their most recent form;

ICSID Convention means the Convention on the Settlement of Investment Disputes between States and Nationals of other States done at Washington, D.C. on 18 March 1965;

intellectual property rights means copyright and related rights, trademark rights, rights in geographical indications, rights in industrial designs, patent rights, rights in layout designs of integrated circuits, rights in relation to protection of undisclosed information, and plant breeders’ rights;

investment means:

(a) any of the following:

(i) an enterprise;

(ii) a share, stock, or other form of equity participation in an enterprise, or any other kind of interest in an enterprise recognized under the domestic law of the Party;

(iii) a bond, debenture,or other debt instrument of an enterprise; (2)

(iv) a loan to an enterprise;

(v) an interest arising from the commitment of capital or other resources in the territory of a Party to economic activity in that territory, such as under a contract involving the presence of an investor’s property in the territory of the Party, including a turnkey or construction contract, a concession, or other similar contract;

(vi) intellectual property rights; and

(vii) any other tangible or intangible, moveable or immovable, property and related property rights;

(b) in each case shall involve the commitment of capital or other resources, the expectation of gain or profit, certain duration, or the assumption of risk; and

(c) for the purposesof this definition, “investment” does not mean:

(i) a claim to money that arises solely from:

(A) a commercial contract for the sale of a good or service by a national or enterprise in the territory of a Party to an enterprise in the territory of the other Party, or

(B) the extension of credit in connection with a commercial transaction, such as trade financing;

(ii) an order or judgment in a judicial or administrative action; or

(iii) any other claim to money, that does not involve the kinds of interests set out in sub-subparagraphs (a)(i) to (vii);

investor of a Party means a Party, or a national (3)  or an enterprise of a Party, other than a branch, that seeks to make (4), is making, or has made an investment in the territory of the other Party. For the purposes of this definition, enterprise of a Party means:

(a) an enterprise that is constituted or organized under the law of that Party and that has substantial business activities in the territory of that Party. A determination of whether an enterprise has substantial business activities in the territory of a Party requires a case-by-case, fact-based inquiry; or

(b) an enterprise that is constituted or organised under the law of that Party, and is directly or indirectly owned or controlled by a national of that Party or by an enterprise mentioned under subparagraph (a);

New York Convention means the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York on 10 June 1958;

non-disputing Party means a Party that is not a disputing party to an investment dispute;

respondent Party means a Party against which a claim is made under Article 13.25 (Submission of a Claim to Arbitration);

third party funding means any funding or other equivalent support provided by a person who is not a disputing party in order to finance part or all of the cost of the proceedings including through a donation or grant, or in return for remuneration dependent on the outcome of the dispute;

Tribunal means an arbitration tribunal established under Section D (Investor-State Dispute Settlement); and

UNCITRAL Arbitration Rules means the arbitration rules of the United Nations Commission on International Trade Law, adopted by the United Nations General Assembly on 15 December 1976, as revised in 2010.

Section B. Investment Protections

Article 13.2. Scope

1. This Chapter applies to a measure adopted or maintained by a Party relating to:

(a) an investor of the other Party;

(b) a covered investment; and

(c) with respect to Article 13.5 (Regulatory Objectives) and Article 13.12 (Performance Requirements), an investment in the territory of that Party.

2. A Party’s obligations under this Chapter apply to a measure adopted or maintained by: (a) the central, regional, or other governments or authorities of that Party; and

(b) any person, including a state enterprise or any other body, when it exercises any governmental authority delegated to it by central, regional, or other governments or authorities of that Party.

3. This Chapter does not apply to:

(a) procurement by a Party;

(b) a subsidy or grant provided by a Party, including a government supported loan, guarantee, or insurance.

4. This Chapter does not bind a Party in relation to an act or fact that took place or a situation that ceased to exist before the date of entry into force of this Agreement.

Article 13.3. Relation to other Chapters

1. This Chapter does not apply to a measure adopted or maintained by a Party to the extent that it is covered by Chapter 8 (Trade in Services) or Chapter 10 (Financial Services).

2. Notwithstanding paragraph 1, this Chapter applies to a measure adopted or maintained by a Party relating to the supply of a service in its territory through commercial presence as defined in Article 8.1 (Trade in Services – Definitions) by a service supplier, to the extent that such a measure is covered by Article 13.2.1 (Scope).

3. A requirement of a Party that a service supplier of the other Party post a bond or other form of financial security as a condition for the cross-border supply of a service does not of itself make this Chapter applicable to a measure adopted or maintained by the Party relating to the cross-border supply of the service. This Chapter applies to a measure adopted or maintained by the Party relating to the posted bond or financial security, to the extent that the bond or financial security is a covered investment

4. In the event of any inconsistency between this Chapter and any other Chapter of this Agreement, the other Chapter shall prevail to the extent of the inconsistency, except that, where paragraph 2 applies, this Chapter prevails over Chapter 8 (Trade in Services).

Article 13.4. Right to Regulate

1. The Parties reaffirm theright of each Party to regulate within its territory to achieve legitimate policy objectives.