Title
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF COLOMBIA AND THE REPUBLIC OF PANAMA
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Section A. GENERAL PROVISIONS
Article 1.1. ESTABLISHMENT OF a FREE TRADE AREA
The Parties to this Agreement, in accordance with the provisions of Article XXIV of the General Agreement on Tariffs and Trade 1994 and Article V of the General Agreement on Trade in Services of the World Trade Organization, establish a free trade area.
Article 1.2. OBJECTIVES
1. The objectives of this Agreement are as follows:
(a) stimulate the expansion and diversification of trade in goods and services between the Parties;
(b) eliminate barriers to trade and facilitate the cross-border movement of goods and services between the Parties;
(c) promote conditions of free and fair competition in trade between the Parties;
(d) take into account the differences in the size of the economies of the Parties, asymmetries and sensitivities;
(e) Establish a permanent channel of dialogue on the trade policies of the Parties, in order to avoid the application of measures that affect bilateral trade in goods and services;
(f) substantially increase investment opportunities in the territories of the Parties; and
(g) create effective procedures for the implementation and enforcement of this Agreement, for its joint administration, and for preventing and resolving disputes.
2. The Parties shall interpret and apply the provisions of this Agreement in the light of the objectives set forth in paragraph 1 and in accordance with the applicable rules of international law.
Article 1.3. RELATIONSHIP WITH OTHER INTERNATIONAL AGREEMENTS
1. The Parties confirm the rights and obligations existing between them in accordance with the WTO Agreement and other international agreements to which both Parties are parties.
2. In case of incompatibility between the provisions of this Agreement and those of the agreements referred to in paragraph 1, this Agreement shall prevail, unless otherwise provided herein.
Article 1.4. SCOPE OF OBLIGATIONS
Except as otherwise provided in this Agreement, each Party is fully responsible for compliance with the provisions of this Agreement and shall ensure that all necessary measures are taken to give effect to the provisions of this Agreement within its territory and at all levels of government.
Article 1.5. REFERENCE TO OTHER AGREEMENTS
Where this Agreement refers to or incorporates by reference other agreements or legal instruments in whole or in part, these shall also include their footnotes and their interpretative and explanatory notes. Unless references are made by way of affirmation of existing rights, such references also include, as the case may be, successor agreements to which the Parties are parties or amendments binding on the Parties.
Section B. GENERAL DEFINITIONS
Article 1.6. DEFINITIONS OF GENERAL APPLICATION
For the purposes of this Agreement and unless otherwise specified:
TRIPS Agreement means the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights;
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, which forms part of the WTO Agreement;
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, dated April 15, 1994;
Agreement on Safeguards means the Agreement on Safeguards, which is part of the WTO Agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, which is part of the WTO Agreement;
TBT Agreement means the Agreement on Technical Barriers to Trade, which is part of the WTO Agreement;
GATS stands for the General Agreement on Trade in Services, which is part of the WTO Agreement;
Customs duty includes an import duty and any charge of any kind levied on or in connection with the importation of a good, including in the form of a surcharge or additional charge, except for a:
(a) charge equivalent to an internal tax established in accordance with Article II:2 of GATT 1994;
(b) antidumping, countervailing or safeguard measure applied in accordance with GATT 1994, the Agreement on Implementation of Article VI of GATT 1994; the WTO Agreement on Subsidies and Countervailing Measures and the WTO Agreement on Safeguards; as the case may be;
(c) right or other charge in accordance with Article 2.10 (Fees, Charges and Administrative Formalities);
customs authority means the competent authority which, in accordance with a Party's legislation, is responsible for the administration of customs laws and regulations;
Chapter means the first two digits of the Harmonized System Tariff Classification Number;
Commission means the Free Trade Commission established in accordance with Article 23.1 (Free Trade Commission);
procurement means the process by which a government acquires the use of or acquires goods or services, or any combination thereof, for governmental purposes and not with a view to commercial sale or resale or with a view to use in the production or supply of goods or services for commercial sale or resale;
days means calendar days;
corporation means any entity organized or organized under applicable law, whether or not for profit and whether privately or governmentally owned, including any partnership, trust, joint venture, sole proprietorship, joint venture or other association;
enterprise of a Party means an enterprise incorporated or organized under the laws of a Party;
State enterprise means an enterprise that is owned or controlled by a Party through ownership rights;
existing means in effect on the date of entry into force of this Agreement;
GATT 1994 means General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
measure includes any measure adopted by a Party, whether in the form of law, regulation, procedure, administrative decision or provision, requirement, practice, or in any other form;
goods of a Party means domestic products as understood in the GATT 1994 or such goods as the Parties may agree, and includes goods originating in that Party. A good of a Party may
include materials from other countries;
originating good means that it qualifies under the rules of origin set out in Chapter 3 (Rules of Origin);
national means a natural person who has the nationality of a Party in accordance with Article 1.7, or a permanent resident of a Party;
MFN stands for Most Favored Nation Treatment, within the meaning of Article I of GATT 1994; WTO means the World Trade Organization;
heading means the first four digits of the Harmonized System (HS) tariff classification number; person means a natural person or a company;
person of a Party means a national or company of a Party;
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 adopted and applied by the Parties in their respective customs tariff laws;
subheading means the first six digits of the Harmonized System (HS) tariff classification number; and
preferential tariff treatment means the tariff rate applicable to an originating good, in accordance with the Parties' respective tariff elimination schedules set out in Annex 2.4 (Tariff Elimination).
Article 1.7. COUNTRY SPECIFIC DEFINITIONS
For the purposes of this Agreement, unless otherwise specified:
central level of government means:
(a) with respect to Colombia, the national level of government; and
(b) with respect to Panama, the central government level.
local level of government means:
(a) with respect to Colombia, departments, districts and municipalities; and
(b) with respect to Panama, the municipalities and townships.
natural person who has the nationality of a Party means:
(a) with respect to Colombia, Colombians by birth or adoption, as determined by Article 96 of the Political Constitution; and
(b) with respect to Panama:
(ij) Panamanians by birth, according to Article 9 of the Political Constitution of the Republic of Panama,
(ii) Panamanians by naturalization, according to Article 10 of the Political Constitution of the Republic of Panama,
(iii) Panamanians by adoption, according to Article 11 of the Political Constitution of the Republic of Panama, and
(iv) a person who, in accordance with Panamanian law, has the status of permanent or definitive resident.
territory means:
(a) with respect to Colombia, the land territory, both continental and insular, airspace, maritime areas and other elements over which it exercises sovereignty, sovereign rights or jurisdiction in accordance with its Political Constitution, domestic law and international law, including applicable international treaties.
(b) with respect to Panama, the land, maritime and air space under its sovereignty; the exclusive economic zone and the continental shelf, over which it exercises sovereign rights and jurisdiction, in accordance with its internal legislation and international law.
Chapter 2. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
Article 2.1. SCOPE
Except as Otherwise Specified In this Agreement, this Chapter Applies to Trade In Goods between the Parties.
Article 2.2. CLASSIFICATION OF GOODS
The classification of goods in trade between the Parties shall be established by the respective nomenclature of each Party in accordance with the Harmonized Commodity Description and Coding System ("HS") 2012 and its subsequent amendments (1).
Section A. NATIONAL TREATMENT
Article 2.3. NATIONAL TREATMENT
1, Each Party shall accord national treatment to goods of the other Party in accordance with the provisions of Article II 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 an integral part of this Agreement.
2. Paragraph 1 does not apply to the measures set forth in Annex 2.
Section B. TARIFFS
Article 2.4. TARIFF ELIMINATION
1. Except as otherwise provided in this Agreement, each Party shall, in accordance with Annex 2-B (Tariff Elimination Program), remove its customs duties on originating goods of the other Party.
2. If, at any time after the date of entry into force of this Agreement, a Party reduces its applied most-favored-nation tariff after the date of entry into force of this Agreement, such tariff shall apply only if it is less than the tariff resulting from the application of Annex 2-B (Tariff Elimination Program).
3. At the request of a Party, the Parties may consult to consider accelerating and expanding the scope of tariff elimination set forth in Annex 2-B (Tariff Elimination).
4. An agreement to accelerate or expand the scope of tariff elimination shall prevail over any tariff or staging category set out in Annex 2-B (Tariff Elimination), once approved by the Parties in accordance with their laws.
5. Except as otherwise provided in this Agreement, no Party may, on an originating good, increase a customs duty set out as a prime rate in Annex 2-B (Tariff Elimination Program) or adopt a new customs duty. It is understood that a Party may not apply to the other Party a higher rate of customs duty on goods imported from the other Party than that set out in its Schedule to Annex 2-B (Tariff Elimination Schedule). 6. For greater certainty, a Party may: (a) following a unilateral reduction of its MFN tariff, increase such customs duty to the other Party at the level set forth in its Schedule to Annex 2-B (Tariff Elimination); or (b) maintaining or increasing a customs tariff as a result of an authorization by the WTO Dispute Settlement Body.
Article 2.5. TEMPORARY ADMISSION OF GOODS
1, Each Party shall authorize temporary admission free of customs duties for the following goods, irrespective of their origin:
(a) professional equipment necessary for the exercise of the business, trade or profession of a person who qualifies for temporary entry under the legislation of the importing Party;
(b) press equipment or broadcasting, television and cinematography equipment;
(c) goods admitted for sporting purposes and goods intended for exhibition or demonstration; and
(d) commercial samples, films and advertising recordings.
2. A Party shall not impose a condition on the duty-free temporary admission of a good referred to in subparagraph 1(a), (b), (c) or (d), other than that the good:
(a) is imported by a national or resident of the other Party requesting temporary entry;
(b) is used only by or under the personal supervision of a person in the conduct of that person's business, trade, profession or sporting activity;
(c) is not subject to sale or lease, as long as it remains in its territory;
(d) is accompanied by a bond in an amount not exceeding the charges that would be due, if any, for entry or final importation, released at the time of departure of the merchandise;
(e) is susceptible to identification when exported;
(f) is exported upon departure of such person or within a period of time reasonably corresponding to the purpose of the temporary admission; or
(g) is admitted in quantities no greater than is reasonable in accordance with its intended use.
3. Where a good is admitted temporarily duty-free pursuant to paragraph 1 and any condition imposed by a Party pursuant to paragraph 2 or 3 has not been complied with, the Party may impose:
(a) the customs duty and any other charges that would normally be due on the entry or final importation of the goods; and
(b) any applicable administrative, civil or criminal penalties that the circumstances warrant.
4. Except as otherwise provided in this Agreement, the Party may not:
(a) prevent a vehicle (2) or container used in international transport that has entered its territory from the territory of the other Party from leaving its territory by any route that is reasonably related to the prompt and economical departure of the vehicle or container;
(b) require a bond or impose any penalty or charge solely on the grounds that the port of entry of the vehicle or container is different from the port of departure;
(c) condition the release of any obligation, including any bond, which it imposes in connection with the entry of a vehicle or container into its territory, on its departure through a particular port; or
(d) require that the vehicle or carrier bringing a container into its territory from the territory of the other Party be the same vehicle or carrier bringing it into the territory of the other Party.
Article 2.6. DUTY-FREE IMPORTATION FOR CERTAIN COMMERCIAL SAMPLES AND PRINTED ADVERTISING MATERIALS
1. Each Party shall grant duty-free entry to commercial samples of negligible value and printed advertising materials imported from the territory of the other Party, irrespective of their origin, but may require that:
(a) such samples are imported only for the purpose of requesting orders from:
(i) goods, from the territory of the other Party or a non-Party; or
(ii) services supplied from the territory of the other Party or a non-Party; or
(b) such advertising materials are imported in packages containing not more than one printed copy each and that neither the materials nor the packages are part of a larger consignment.
Article 2.7. GOODS REIMPORTED AFTER REPAIR OR ALTERATION
1. A Party may not apply a customs duty to a good, regardless of its origin, that has been reimported into its territory after having been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could have been carried out in its territory.
2. The Party may not apply a customs duty to a good that, regardless of its origin, is temporarily imported from the territory of the other Party to be repaired or altered.
3. For purposes of this Article, repair or alteration does not include an operation or process that:
(a) destroys the essential characteristics of a good or creates a new or commercially different good; or
(b) transforms an unfinished good into a finished good.
Section C. NON-TARIFF MEASURES
Article 2.8. IMPORT AND EXPORT RESTRICTIONS
1. Except as otherwise provided in this Agreement, a Party may 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 a good destined for the territory of the other Party, except as provided in Article XI of GATT 1994 and its interpretative notes, and to this end Article XI of GATT 1994 and its interpretative notes are incorporated into and made an integral part of this Agreement.
2. The Parties understand that the rights and obligations of the GATT 1994 embodied in paragraph 1 prohibit:
(a) export price requirements in any circumstance in which it is prohibited;
(b) The Company is not subject to import price requirements, except as permitted for the application of antidumping and countervailing duty provisions and undertakings;
(c) minimum prices, indicative prices, or any other valuation price, which replaces the customs value of the goods, contrary to the commitments of the Parties to the WTO;
(d) the application of quotas and charges of any nature that imply a breach of the commitments derived from Article Il of GATT 1994; and
(e) reintroduce measures that have been declared incompatible by the Dispute Settlement Body with the Parties' WTO commitments.
3. In the event that a Party adopts or maintains a prohibition or restriction on the importation or exportation of a good from or to a non-Party, this Agreement does not preclude such Party:
(a) limit or prohibit the importation of the goods of the non-Party from the territory of the other Party; or
(b) require as a condition for the exportation of that good from the Party to the territory of the other Party, that the good is not re-exported to the non-Party, directly or indirectly, without being consumed in the territory of the other Party.
4. Paragraphs 1 to 3 do not apply to the measures listed in Annex 2-A.
5. Neither Party shall require, as a condition or commitment for the importation of a good, that a person of the other Party establish or maintain a contractual or other relationship with a distributor in its territory; nor shall it restrict the importation into its territory of a good for the purpose of enforcing strictly private contractual relationships, unless ordered to do so by a judicial authority.
Article 2.9. EXPORT TAXES
Except as provided in Annex 2-C, the Parties may not adopt or maintain any tax, levy or charge on the exportation of any good to the territory of the other Party, unless the tax, levy or charge is also adopted or maintained on the merchandise when destined for domestic consumption.
Article 2.10. FEES, CHARGES AND ADMINISTRATIVE FORMALITIES
1. No Party may adopt or maintain any duty or similar charge related to importation, which does not correspond to the cost of services rendered, in accordance with the provisions of Article VII of the GATT 1994 and its interpretative notes.
2. Paragraph 1 does not preclude a Party from establishing a customs duty or a charge set out in subparagraphs (a) and (b) of the definition of "customs duty" contained in Article 1.6 (Definitions of General Application).
3. Neither Party shall require consular transactions, including related fees and charges, in connection with the importation of any goods of the other Party.
4. Each Party shall make available and maintain, preferably through the Internet, up-to- date information on duties and charges applied in connection with importation or exportation.