Title
AGREEMENT BETWEEN THE AMERICAN INSTITUTE IN TAIWAN AND THE TAIPEI ECONOMIC AND CULTURAL REPRESENTATIVE OFFICE IN THE UNITED STATES REGARDING TRADE BETWEEN THE UNITED STATES OF AMERICA AND TAIWAN
Preamble
PREAMBLE The American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States, hereinafter individually referred to as a "Party" and collectively the "Parties," seeking to:
STRENGTHEN the economic and trade relationship between the United States of America (United States) and Taiwan;
ACHIEVE a 21st-century trade agreement with high-standard commitments and economically meaningful outcomes to support mutually beneficial trade leading to freer, fairer markets and to robust economic growth;
BENEFIT workers and ensure that free and fair trade contributes to promoting resilient, sustainable, and inclusive economic growth and development;
FACILITATE bilateral trade and investment flows;
PROMOTE good regulatory practices;
IMPROVE regulatory processes;
ENSURE efficient and transparent customs procedures that reduce costs and ensure predictability for importers and exporters;
ENCOURAGE cooperation in the area of trade facilitation and customs enforcement; MINIMIZE unnecessary formalities at the border;
PROMOTE anticorruption measures;
ENHANCE transparency for the public and traders of all sizes and in all sectors;
FOSTER cooperation in promoting jobs and growth in small and medium-sized enterprises, including micro-sized enterprises;
ESTABLISH a foundation for addressing additional trade and investment challenges and opportunities and for advancing mutual priorities over time;
RECOGNIZING the existing rights and obligations of the United States and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu with respect to each other under the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh, April 15, 1994; the Parties' rights and obligations under the Agreement Between the American Institute in Taiwan and the Coordination Council for North American Affairs Concerning a Framework of Principles and Procedures for Consultations Regarding Trade and Investment, done at Washington, D.C., September 19, 1994; and other agreements addressing rights and obligations with respect to trade between the territories represented by the Parties; and
RECOGNIZING the role that the Parties' Designated Representatives play in matters involving trade and investment between the United States and Taiwan,
HAVE AGREED as follows:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Section A. Initial Provisions
Article 1.1. Agreement Regarding Trade
The Parties hereby enter into this Agreement regarding trade between the United States and Taiwan. (1)
Article 1.2. Designated Representatives
(a) AIT's Designated Representative is the Office of the United States Trade Representative. TECRO's Designated Representative is the Office of Trade Negotiations, Executive Yuan.
(b) Responsibilities and obligations of the Parties are to be carried out through their respective Designated Representatives where so indicated. The Parties recognize that their respective Designated Representatives may rely on other authorities of the territories represented by the Parties as relevant to ensure the implementation of the Parties' responsibilities and obligations or to exercise the Parties' rights. The Parties intend that, where authorities of the territories represented by the Parties other than their Designated Representatives maintain executive, regulatory, administrative, or other authority relevant to matters addressed by this Agreement, references in this Agreement to Designated Representatives shall be understood to include those other authorities with respect to such matters.
Article 1.3. Delegated Authority
Each Party, through its Designated Representative, shall ensure that all relevant authorities of the territory that it represents that have been delegated executive, regulatory, administrative, or other authority relevant to the obligations set out under this Agreement act consistent with such obligations in the exercise of that authority.
Section Section B: General Definitions
Article 1.4. General Definitions
For the purposes of this Agreement, unless otherwise provided:
AIT means the American Institute In Taiwan;
central level means:
(a) for AIT, the federal authorities of the territory represented by AIT; and
(b) for TECRO, the authorities with jurisdiction that extends throughout the territory represented by TECRO;
customs administration means the competent authority that is responsible under the law of the territory represented by a Party for the administration of customs laws and regulations, and shall refer to:
(a) for AIT, United States Customs and Border Protection, Department of Homeland Security, or any successor thereof; and
(b) for TECRO, Taiwan Customs Administration, Ministry of Finance, or any successor thereof;
customs duty includes a duty or charge of any kind imposed on or in connection with the importation of a good, and any surtax or surcharge imposed on or in connection with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994;
(b) fee or other charge in connection with the importation commensurate with the cost of services rendered;
(c) antidumping or countervailing duty; and (d) premium offered or collected on an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions, tariff rate quotas, or tariff preference levels;
days means calendar days, including weekends and holidays;
enterprise means an entity constituted or organized under applicable measures, whether or not for profit, and whether privately owned or owned or controlled by the authorities of the territory represented by a Party or by the authorities of a territory not represented by a Party, including a corporation, trust, partnership, sole proprietorship, joint venture, association, or similar organization;
enterprise of the territory represented by a Party means an enterprise constituted or organized under the measures adopted or maintained by the authorities of the territory represented by the Party;
existing means in effect on the date of entry into force of this Agreement;
financial service means a service of a financial nature. Financial services include all insurance and insurance-related services, and all banking and other financial services (excluding insurance), as well as 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;
(c) insurance intermediation, such as brokerage and 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, travelers checks, 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 checks, 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 supply of services related to these 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 (0), including credit reference and analysis, investment and portfolio research and advice, and advice on acquisitions and on corporate restructuring and strategy;
GATS means the General Agreement on Trade in Services, set out in Annex 1B to the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement;
goods means a merchandise, product, article, or material; individual means a natural person;
measure includes any law, regulation, procedure, requirement, or practice adopted or maintained by the authorities of the territory represented by a Party;
national means:
(a) for AIT, "a national of the United States," as defined in the Immigration and Nationality Act; and
(b) for TECRO, a "national" as defined in the Nationality Act; person means a natural person or an enterprise; person of the territory represented by a Party means a natural person who is a national or has permanent residency of the territory represented by the Party, or any enterprise of the territory represented by the Party;
publish means to disseminate information through paper or electronic means that is distributed widely and is readily accessible to the general public;
service supplier of the territory represented by a Party means a person of the territory represented by the Party that seeks to supply or supplies a service;
SME means a small and medium-sized enterprise, including a micro-sized enterprise;
TECRO means the Taipei Economic and Cultural Representative Office;
territory means:
(a) for AIT,
(i) the customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico;
(ii) the foreign trade zones located in the United States and Puerto Rico; and
(iii) the territorial sea and air space of the United States and any area beyond the territorial sea within which, in accordance with customary international law as reflected in the United Nations Convention on the Law of the Sea, the United States may exercise sovereign rights or jurisdiction;
(b) for TECRO, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu;
trade in services or supply of services means the supply of a service:
(a) from the territory represented by a Party into the territory represented by the other Party;
(b) in the territory represented by a Party by a person of the territory represented by the Party to a person of the territory represented by the other Party;
(c) by a service supplier of the territory represented by a Party, through commercial presence in the territory represented by the other Party; or
(d) by a national of the territory represented by a Party in the territory represented by the other Party;
value added tax means any tax at the central level, including relevant goods and services tax, that embodies the basic features of a value added tax: a broad-based tax on final consumption collected from, but in principle not borne by, businesses through a staged collection process, without regard to the method used for determining the tax liability;
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh, April 15, 1994.
Chapter 2. CUSTOMS ADMINISTRATION AND TRADE FACILITATION! (1)
Article 2.1. Definitions
For the purposes of this Chapter:
customs offense means any act committed for the purpose of avoiding the laws or regulations of the territory represented by a Party pertaining to the provisions of this Chapter governing importations or exportations of goods between, or transit of goods through, the territories represented by the Parties, specifically those that violate a customs law or regulation for restrictions or prohibitions on imports or exports, duty evasion, falsification of documents relating to the importation or exportation of goods, fraud, or smuggling of goods;
electronic format includes formats suitable for automated interpretation and electronic processing without human intervention, as well as digitized images and forms; and
supporting documentation means documentation that is required to support the information presented to the customs administration or other authority of the territory represented by a Party for import, export, or transit of goods through that territory, and may include documents such as invoices, bills of lading, packing lists, and money transfers.
Article 2.2. Online Publication
1. Each Party, through its Designated Representative, shall make available on a free, publicly accessible website the following information and update such information as necessary:
(a) an informational resource that describes the procedures and practical steps an interested person needs to follow for importation into, exportation from, or transit through the territory represented by the Party;
(b) the forms, documentation, and data that the authorities of the territory represented by the Party require for importation into, exportation from, or transit through the territory represented by the Party;
(c) the laws, regulations, and procedures of the territory represented by the Party for importation into, exportation from, or transit through the territory represented by the Party;
(d) all current customs duties, taxes, fees, and charges that the authorities of the territory represented by the Party impose on or in connection with importation, exportation, or transit, including when the fee or charge applies, and the amount or rate;
(e) contact information for the enquiry point or points of the authorities of the territory represented by the Party established or maintained pursuant to Article 2.4;
(f) the laws, regulations, and procedures of the territory represented by the Party for requesting an advance ruling under Article 2.5 and for returning and reimporting rejected goods under Article 2.15;
(g) the laws, regulations, and procedures of the territory represented by the Party for seeking an administrative or judicial review or appeal of an administrative decision or determination from the customs administration of the territory represented by the Party;
(h) informational resources that help an interested person understand the person's obligations when importing into, exporting from, or transiting goods through the territory represented by the Party, how to comply with those obligations, and any additional facilitations available based on a record of compliance, such as through a trusted trader program;
(i) information about trusted trader programs, such as authorized economic operator programs, including eligibility requirements and the application process;
(j) procedures to correct an error in a customs transaction, including the information necessary to make the corrections and, if applicable, the circumstances when penalties will not be imposed;
(k) information about the current tariff classification nomenclature in effect and the procedures for updating and adopting new nomenclature;
(l) the standards required for the submission of electronic data, electronic documentation, electronic certifications, and electronic signatures to the customs administration or other authority of the territory represented by the Party for importation into, exportation from, or transit through the territory represented by the Party; and
(m) with respect to information that is collected from, or provided by, traders:
(i) how such information can be used, the persons who will be able to access such information, how such information will be stored, and how such information can be checked for errors;
(ii) the laws, regulations, and procedures of the territory represented by the Party regarding the collection, protection, use, disclosure, retention, correction, and disposal of such information;
(iii) any agreements or arrangements governing the collection of such information or the exchange or sharing of such information with third parties; and
(iv) a list of third parties with which the authorities of the territory represented by the Party exchange or share such information.
2. Each Party, through its Designated Representative, shall make the value added tax rates of the territory represented by the Party available without charge in a commonly accepted electronic format, such as Application Programming Interface, and keep the list of rates updated.
Article 2.3. Communication with Traders
1. Each Party, through its Designated Representative, shall, to the extent possible and in accordance with the law of the territory represented by the Party, publish, in advance, regulations of general application governing trade and customs matters that the authorities of that territory propose to adopt and provide interested persons the opportunity to comment before such regulations are adopted.
2. Each Party, through its Designated Representative, shall adopt or maintain a mechanism to regularly communicate with traders about the current and upcoming procedures of the authorities of the territory represented by the Party related to the importation, exportation, and transit of goods. These communications shall provide traders with an opportunity to raise concerns about those procedures and emerging issues and to provide their views to the customs administration and other authorities of that territory on those procedures and emerging issues.
Article 2.4. Enquiry Points
1. Each Party, through its Designated Representative, shall establish or maintain one or more enquiry points to respond to enquiries by interested persons concerning importation, exportation, or transit procedures.
2. Neither Party, either on its own or through its Designated Representative, shall require the payment of a fee or charge for answering enquiries through the enquiry point established under paragraph 1.
3. Notwithstanding paragraph 2, a Party, through its Designated Representative, may require payment of a fee or charge with respect to other enquiries requiring document search, duplication, review, or processing of large volumes of documents or data in connection with requests in accordance with the laws, regulations, and procedures of the territory represented by the Party regarding public access to official records.
4. Each Party, through its Designated Representative, shall ensure that its enquiry point responds to enquiries within 20 days.
5. Notwithstanding paragraph 4, a Party, through its Designated Representative, may allow its enquiry point to take more than 20 days to respond to enquiries that require a document search, duplication, review, or the processing of large volumes of documents or data.
Article 2.5. Advance Rulings
1. Each Party, through its Designated Representative, shall provide that the customs administration of the territory represented by the Party shall issue, upon request, a written advance ruling prior to the importation of a good into that territory setting forth the treatment that the customs administration shall provide to the good at the time of importation, or exportation in the case of eligibility for drawback or duty deferral.
2. Each Party, through its Designated Representative, shall allow a person of the territory represented by a Party who is an exporter, importer, producer, or that has a justifiable cause, or a representative thereof, to request a written advance ruling.
3. Neither Party, either on its own or through its Designated Representative, shall require, as a condition for requesting an advance ruling, a person of the territory represented by the other Party to establish or maintain a contractual or other relation with a person located in the territory represented by the Party.
4. Each Party, through its Designated Representative, shall provide that the customs administration of the territory represented by the Party shall issue advance rulings with regard to:
(a) tariff classification;
(b) the application of customs valuation criteria for a particular case in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade, set out in Annex 1A to the WTO Agreement (Customs Valuation Agreement);
(c) the origin of the good;
(d) whether a good is subject to a quota or a tariff-rate quota; and
(e) eligibility for a drawback or duty deferral program.
5. Each Party, through its Designated Representative, shall adopt or maintain uniform procedures throughout the territory represented by the Party for the issuance of advance rulings, including a detailed description of the information required to process an application for a ruling.
6. Nothing in this Article prohibits a Party, either on its own or through its Designated Representative, from seeking supplemental information from the person requesting the ruling or a sample of the good for which the advance ruling is being requested at any time while evaluating a request for an advance ruling.
7. Each Party, through its Designated Representative, shall:
(a) in issuing an advance ruling, take into account the facts and circumstances provided by the person requesting that ruling;