(b) the application of duty drawback, deferral or other types of relief that reduce, tefund or waive customs duties;
(c) the eligibility requirements for goods under Article 2.6 (Goods Re-entered after Repair and Alteration);
(d) country of origin marking, if it is a prerequisite for importation; and
(e) other matters as the Parties may decide.
Article 4.5. Review and Appeal
1. Each Party shall ensure that any person to whom it issues a determination (3) on a customs matter has access to:
(a) administrative review of the determination, independent (4) of the employee or office that issued the determination; and
(b) judicial review of the determination.
2. Each Party shall ensure that an authority that conducts a review under paragraph 1 notifies the parties to the matter in writing of its decision and the reasons for the decision. A Party may require a request as a condition for providing the reasons for a decision in the review. Article 4.6: Automation 1. Each Party shall:
(a) endeavour to use international standards with respect to procedures for the release of goods;
(b) make electronic systems accessible to customs users;
(c) employ electronic or automated systems for risk analysis and targeting;
(d) endeavour to implement common standards and elements for import and export data in accordance with the World Customs Organization (WCO) Data Model;
(e) take into account, as appropriate, WCO standards, recommendations, models and methods developed through the WCO or APEC; and
(f) work toward developing a set of common data elements that are drawn from the WCO Data Model and related WCO recommendations as well as guidelines to facilitate government to government electronic sharing of data for purposes of analysing trade flows.
2. Each Party shall endeavour to provide a facility that allows importers and exporters to electronically complete standardised import and export requirements at a single entry point.
Article 4.7. Express Shipments
1. Each Party shall adopt or maintain expedited customs procedures for express shipments while maintaining appropriate customs control and selection. These procedures shall:
(a) provide for information necessary to release an express shipment to be submitted and processed before the shipment arrives;
(b) allow a single submission of information covering all goods contained in an express shipment, such as a manifest, through, if possible, electronic means; (5)
(c) tothe extent possible, provide for the release of certain goods with a minimum of documentation;
(d) under normal circumstances, provide for express shipments to be released within six hours after submission of the necessary customs documents, provided the shipment has arrived;
(e) apply to shipments of any weight or value recognising that a Party may require formal entry procedures as a condition for release, including declaration and supporting documentation and payment of customs duties, based on the good's weight or value; and
(f) provide that, under normal circumstances, no customs duties will be assessed on express shipments valued at or below a fixed amount set under the Party's law. (6)
2. If a Party does not provide the treatment in paragraph 1(a) through (f) to all shipments, that Party shall provide a separate (7) and expedited customs procedure that provides that treatment for express shipments.
Article 4.8. Penalties
Each Party shall adopt or maintain measures that allow for the imposition of a penalty by a Party's customs administration for a breach of its customs laws, regulations or procedural requirements, including those governing tariff classification, customs valuation, country of origin and claims for preferential treatment under this Agreement.
Article 4.9. Risk Management
1. Each Party shall adopt or maintain a risk management system for assessment and targeting that enables its customs administration to focus its inspection activities on high-risk goods and that simplifies the clearance and movement of low-risk goods.
2. In order to facilitate trade, each Party shall periodically review and update, as appropriate, the risk management system specified in paragraph 1.
Article 4.10. Release of Goods
1. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties. This paragraph shall not require a Party to release a good if its requirements for release have not been met.
2. Pursuant to paragraph 1, each Party shall adopt or maintain procedures that:
(a) provide for the release of goods within a period no longer than that required to ensure compliance with its customs laws and, to the extent possible, within 48 hours of the arrival of the goods;
(b) provide for the electronic submission and processing of customs information in advance of 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 temporary transfer to warehouses or other facilities; and
(d) allow an importer to obtain the release of goods prior to the final determination of customs duties, taxes and fees by the importing Party's customs administration when these are not determined prior to or promptly upon arrival, provided that the good is otherwise eligible for release and any security required by the importing Party has been provided or payment under protest, if required by a Party, has been made. Payment under protest refers to payment of duties, taxes and fees if the amount is in dispute and procedures are available to resolve the dispute.
3. If a Party allows for the release of goods conditioned on a security, it shall adopt or maintain procedures that:
(a) ensure that the amount of the security is no greater than that required to ensure that obligations arising from the importation of the goods will be fulfilled;
(b) ensure that the security shall be discharged as soon as possible after its customs administration is satisfied that the obligations arising from the importation of the goods have been fulfilled; and
(c) allow importers to provide security using non-cash financial instruments, including, in appropriate cases where an importer frequently enters goods, instruments covering multiple entries.
Article 4.11. Publication
1. Each Party shall make publicly available, including online, its customs laws, regulations, and general administrative procedures and guidelines, to the extent possible in the English language.
2. Each Party shall designate or maintain one or more enquiry points to address enquiries from interested persons concerning customs matters and shall make information concerning the procedures for making such enquiries publicly available online.
3. To the extent possible, each Party shall publish in advance regulations of general application governing customs matters that it proposes to adopt and shall provide interested persons the opportunity to comment before the Party adopts the regulation.
Article 4.12. Confidentiality
1. Ifa Party provides information to the other Party in accordance with this Chapter and designates the information as confidential, the other Party shall keep the information confidential. The Party that provides the information may require the other Party to use it only for the purposes specified in the other Party's request.
2. This Article shall not preclude the use or disclosure of information provided pursuant to this Chapter to the extent such use or disclosure is required by the domestic laws and regulations of the Party of the customs administration receiving the information. Such customs administration shall, whenever possible, give advance notice of any such disclosure to the customs administration providing information.
3. A Party may decline to provide information requested by the other Party if that Party has failed to act in accordance with paragraph 1.
4. Each Party shall adopt or maintain procedures for protecting from unauthorised disclosure confidential information submitted in accordance with the administration of the Party's customs laws, including information the disclosure of which could prejudice the competitive position of the person providing the information.
Chapter 5. Trade Remedies
Section A. Safeguard Measures
Article 5.1. Definitions
For the purposes of this Section:
domestic industry means, with respect to an imported good, the producers as a whole of the like or directly competitive good operating within the territory of a Party, or those producers whose collective production of the like or directly competitive good constitutes a major proportion of the total domestic production of that good;
serious injury means a significant overall impairment in the position of a domestic industry;
threat of serious injury means serious injury that, on the basis of facts and not merely on allegation, conjecture or remote possibility, is clearly imminent;
transition period means, in relation to a particular good, the three-year period beginning on the date of entry into force of this Agreement, except where the tariff elimination for the good occurs over a longer period of time, in which case the transition period shall be the period of the staged tariff elimination for that good; and
transitional safeguard measure means a measure described in Article 5.3.2.
Article 5.2. Global Safeguards
1. Each Party retains its rights and obligations under Article XIX of GATT 1994 and the Safeguards Agreement, and any other relevant provisions in the WTO Agreement.
2. This Agreement shall not confer any additional rights or obligations on the Parties with regard to actions taken pursuant to Article XIX of GATT 1994 and the Safeguards Agreement.
Article 5.3. Imposition of Transitional Safeguard Measure
1. A Party may apply a transitional safeguard measure described in paragraph 2, during the transition period only, if as a result of the reduction or elimination of a customs duty pursuant to this Agreement, an originating good of the other Party 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 cause or threaten to cause serious injury to the domestic industry that produces a like or directly competitive good.
2. If the conditions in paragraph 1 are met, the Party may, to the extent necessary to prevent or remedy serious injury and to facilitate adjustment:
(a) suspend the further reduction of any rate of customs duty provided for under this Agreement on the good; or
(b) increase the rate of customs duty on the good to a level not to exceed the lesser of:
(i) the most-favoured-nation applied rate of customs duty in effect at the time the measure is applied; and
(ii) the most-favoured-nation applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement.
3. Neither Party shall apply or maintain tariff rate quotas nor quantitative restrictions as transitional safeguard measures.
4. Neither Party shall apply or maintain a transitional safeguard measure to any product imported under a tariff rate quota established by the Party under this Agreement.
5. Neither Party shall apply a transitional safeguard measure against an originating good of the other Party where the exporting Party's share of imports of the originating good in the importing Party does not exceed three per cent.
Article 5.4. Investigation Procedures and Transparency Requirements
A Party shall apply a transitional safeguard measure only following an investigation by the Party's competent authorities in accordance with Article 3 and Article 4.2 of the Safeguards Agreement; to this end, Article 3 and Article 4.2 of the Safeguards Agreement are incorporated into and made part of this Agreement mutatis mutandis.
Article 5.5. Standards for a Transitional Safeguard Measure
1. A Party shall maintain a transitional safeguard measure 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 5.4, that the transitional safeguard measure continues to be necessary to prevent or remedy further or ongoing serious injury and to facilitate adjustment.
3. Neither Party shall maintain a transitional safeguard measure beyond the expiration of the transition period.
4. In order to facilitate adjustment in a situation where the expected duration of a transitional safeguard measure 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 a transitional safeguard measure, the Party that applied the measure shall apply the rate of customs duty set out in the Party's Schedule to Annex 2-B (Tariff Commitments) as if that Party had never applied the transitional safeguard measure.
6. Neither Party shall apply a transitional safeguard measure more than once on the same good.
Article 5.6. Notification and Consultation
1. A Party shall immediately notify the other Party, in writing, if it:
(a) initiates a transitional safeguard investigation under this Chapter;
(b) makes a finding of serious injury, or threat of serious injury, caused by increased imports, in accordance with Article 5.3;
(c) takes a decision to apply or extend a transitional safeguard measure; and
(d) takes a decision to modify a transitional safeguard measure previously undertaken.
2. A Party shall make available to the other Party a copy of the public version of the report of its competent authorities that is required under Article 5.4.
3. When a Party makes a notification pursuant to paragraph 1(c) that it is applying or extending a transitional safeguard measure, that Party shall include in that notification:
(a) evidence of a serious injury, or threat of serious injury, caused by increased imports of an originating good of the other Party as a result of the reduction or elimination of a customs duty pursuant to this Agreement;
(b) a precise description of the originating good subject to the transitional safeguard measure including its heading or subheading under the HS Code, on which the schedules of tariff commitments in Annex 2-B (Tariff Commitments) are based;
(c) aprecise description of the transitional safeguard measure;
(d) the date of the transitional safeguard measure's introduction, its expected duration and, if applicable, a timetable for progressive liberalisation of the measure; and
(e) in the case of an extension of the transitional safeguard measure, evidence that the domestic industry concerned is adjusting.
4. Onrequest of the Party whose good is subject to a proceeding for the application or extension of a transitional safeguard under this Chapter, the other Party shall enter into consultations with the requesting Party to review a notification under paragraph 1 or any public notice or report that the competent investigating authority issued in connection with that proceeding.
Article 5.7. Compensation
1. A Party applying or extending a transitional safeguard measure shall, in consultation with the other Party, 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 transitional safeguard measure. The Party shall provide an opportunity for those consultations no later than 30 days after the application of the transitional safeguard measure.
2. If the consultations under paragraph 1 do not result in an agreement on trade liberalising compensation within 30 days, a Party against whose good the transitional safeguard measure is applied may suspend the application of substantially equivalent concessions to the trade of the other Party.
3. The Party against whose good the transitional safeguard measure is applied shall notify the other Party 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 transitional safeguard measure.
Article 5.8. Relation to other Safeguard Measures
Neither Party shall apply or maintain two or more of the following measures, with respect to the same good, at the same time:
(a) a transitional safeguard measure under this Chapter;
(b) asafeguard measure under Article XIX of GATT 1994 and the Safeguards Agreement;
(c) asafeguard measure under the Agreement on Agriculture.
Section B. Antidumping and Countervailing Duties
Article 5.9. Antidumping and Countervailing Duties
1. Each Party retains its rights and obligations under Article VI of GATT 1994 and the WTO Agreement with regard to the application of antidumping and countervailing duties.
2. This Agreement shall not confer any additional rights or obligations on the Parties with regard to actions taken pursuant to Article VI of GATT 1994 and the WTO Agreement with regard to the application of antidumping and countervailing duties.
3. Neither Party shall have recourse to dispute settlement under Chapter 27 (Dispute Settlement) for any matter arising under this Section.
Chapter 6. Sanitary and Phytosanitary Measures
Article 6.1. Definitions
The definitions in Annex A of the SPS Agreement are incorporated into this Chapter and shall form part of this Chapter, mutatis mutandis.
Article 6.2. Scope
This Chapter shall apply to all sanitary and phytosanitary (SPS) measures of a Party that may, directly or indirectly, affect trade between the Parties.
Article 6.3. Reaffirmation of Rights and Obligations Under the Wto
1. Parties reaffirm their rights and obligations under the WTO SPS Agreement.
2. Nothing in this Agreement shall affect the rights and obligations that each Party has under the SPS Agreement. Article 6.4: 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 and expanding trade;
(b) reinforce and build on the SPS Agreement;
(c) strengthen communication, consultation and cooperation between the Parties, their competent authorities and government representatives;
(d) ensure that SPS measures implemented by a Party do not create a disguised restriction on trade;
(e) enhance transparency in, and understanding of, the application of each Party's SPS measures; and
(f) encourage the development and adoption of international standards, guidelines and recommendations, and promote their implementation by the Parties.
Article 6.5. Committee on Sps Measures
1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Committee on SPS Measures (Committee), composed of government representatives of each Party responsible for SPS matters.
2. The objectives of the Committee are to:
(a) enhance each Party's implementation of this Chapter;
(b) consider SPS matters of mutual interest; and
(c) enhance communication and cooperation on SPS matters.
3. The Committee:
(a) shall provide a forum to improve the Parties' understanding of SPS issues that relate to the implementation of the WTO SPS Agreement and this Chapter;
(b) shall provide a forum to enhance mutual understanding of each Party's SPS measures and the regulatory processes that relate to those measures;
(c) shall exchange information on the implementation of this Chapter;
(d) shall determine the appropriate means to undertake specific tasks related to the functions of the Committee;
(e) may identify and develop cooperation projects between the Parties on SPS measures;
(f) may serve as a forum for either Party to share information on and discuss an SPS issue that has arise between them; and
(g) may consult on matters and positions for the meetings of the Committee on Sanitary and Phytosanitary Measures established under Article 12 of the SPS Agreement (WTO SPS Committee), and meetings held under the auspices of the Codex Alimentarius Commission, the World Organisation for Animal Health and the International Plant Protection Convention.
4. The Committee shall establish its terms of reference at its first meeting and may revise those terms as needed.
5. The Committee shall meet within one year of the date of entry into force of this Agreement, and on annual basis, unless the Parties agree otherwise. The Committee may meet face to face, via videoconference, teleconference, or any other means as agreed by the Parties.
Article 6.6. Adaptation to Regional Conditions, Including Pest- or Disease-free Areas and Areas of Low Pest or Disease Prevalence
1. The Parties recognise that adaptation to regional conditions is an important means to facilitate trade.
2. The Parties shall take into account the relevant guidance of the WTO SPS Committee and international standards, guidelines and recommendations.