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. 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 other relationship 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 licence application with respect to a good of the other 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. A Party 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 procedure will 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 a recent 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 Article does 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 this Agreement 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 pursue collaborative 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 information (4) that 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 occurrence and 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 measures applied to address that LLP occurrence are appropriate to achieve compliance with its laws, regulations 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.
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 at the 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.
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 or materials 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.