(d) use automated electronic systems for irrigation guidance and analysis.
Article 4.4. RISK MANAGEMENT
1. Each Party shall endeavor to adopt or maintain risk management systems that enable its customs authority to focus its control and inspection activities on high-risk goods and to simplify the clearance and movement of low-risk goods through customs, while respecting the confidential nature of information obtained through such activities, in accordance with its legislation.
2. The importing Party shall recognize the efforts made by the exporting Party related to security in the trade supply chain.
Article 4.5. AUTHORIZED ECONOMIC OPERATOR
1. The Parties shall promote the implementation of the Authorized Economic Operator (hereinafter referred to as AEO) in accordance with the WCO Framework of Standards to Secure and Facilitate Global Trade ("SAFE Framework of Standards").
2. Their obligations, requirements and formalities shall be established in accordance with the legislation of each Party.
3. Recognition of AEO security status and trade facilitation benefits will be provided in exchange for compliance with security standards.
Article 4.6. SIMPLIFICATION OF CUSTOMS PROCEDURES AND FACILITATION OF TRADE IN GOODS AND SERVICES COMMERCE
The Parties shall promote the implementation of actions that simplify customs procedures and facilitate legitimate trade between them, as well as, to the extent possible, the collection and exchange of statistics on the import and export of goods, which contribute to preserve their control capabilities. The foregoing in order to ensure that the objectives set forth in Chapter 3 (Rules of Origin and Origin Procedures) and this Chapter are achieved. To this end, each Party shall notify the other Party, to the extent possible, of the following determinations, measures and rulings:
(a) origin determinations issued as a result of a verification carried out in accordance with Article 3.19 (Origin Verification Procedures);
(b) acts that the Party considers contrary to a ruling issued by the customs authority of the other Party, on: determination of origin, tariff classification or value of a good or of the materials used in the manufacture of a good;
(c) measures establishing or significantly modifying an administrative policy that may affect future origin determinations; and
(d) advance rulings or their modification, in accordance with Article 4.12 of this Chapter.
Article 4.7. CONFIDENTIALITY
1. Each Party shall maintain and protect, in accordance with its laws, confidential information collected under this Chapter.
2. Confidential information received pursuant to this Chapter may not be used for purposes other than the administration and enforcement of origin determinations, customs and tax matters.
Article 4.8. REVIEW AND APPEAL
In matters relating to its customs determinations, each Party shall grant access to:
(a) at least one level of administrative review independent of the employee or office making the determinations; and
(b) judicial review of the determination or decision made in the last instance of administrative review.
Article 4.9. COOPERATION
Cooperation between the Parties in customs matters shall be governed by the provisions of Annex 4-A.
Article 4.10. UNIFORM REGULATIONS
The Parties, through the Commission, shall establish and apply, through their respective laws or regulations, not later than the date of entry into force of this Agreement or when necessary, Uniform Regulations concerning the interpretation, application and administration of Chapter 3 (Rules of Origin and Origin Procedures) and its Annexes 3-B, 3-C and 3-D; this Chapter and Annex 4-A.
Each Party shall apply any modification or addition to the Uniform Regulations, at the latest within 180 days following the agreement between them on such modification or addition, or within such other period as the Parties may agree.
Article 4.11. PENALTIES
1. Each Party shall adopt or maintain measures to permit the imposition of civil or administrative penalties and, where appropriate, criminal penalties for violations of its customs laws and regulations, including those governing tariff classification, customs valuation, rules of origin, and claims for preferential treatment under the provisions of Chapter 3 (Rules of Origin and Origin Procedures) and this Chapter.
2. Each Party shall establish criminal, civil or administrative penalties for the exporter or producer who provides false or unfounded information to the certifying authority issuing the Certificate of Origin.
Article 4.12. ADVANCE RULINGS
1. Each Party shall provide that, through its customs authority, advance written rulings shall be granted prior to the importation of a good into its territory, when the importer or exporter of the respective Party (1) has so requested in writing.
2. Advance rulings shall be issued by the customs authority to an importer in its territory or to an exporter or producer in the territory of the other Party, based on the facts and circumstances stated by such importer, exporter or producer of the good, provided that the applicant has submitted all the information required by the Party.
3. Advance rulings will be issued with respect to:
(a) tariff classification;
(b) whether the good qualifies as originating under Chapter 3 (Rules of Origin and Origin Procedures);
(c) such other matters as the Parties may agree.
4. Each Party shall adopt or maintain procedures for the issuance of advance rulings, including:
(a) such information as is reasonably required to process the request; including samples of the merchandise for which the requester is requesting an advance ruling;
(b) the power of the customs authority to request additional information from the person requesting the ruling at any time during the evaluation process;
(c) the obligation of the customs authority to issue the advance ruling within a maximum period of 120 days, once all the necessary information has been obtained by customs from the applicant; and
(d) the obligation of the customs authority to issue the advance ruling in a complete, substantiated and reasoned manner.
5. Each Party shall apply advance rulings to imports into its territory as of the date of issuance of the ruling or such later date as it may specify, unless the advance ruling is modified or revoked in accordance with paragraph 8.
6. Each Party shall provide consistent treatment with respect to requests for advance ruling, provided that the facts and circumstances are identical in all material respects.
7. Each Party shall publish, to the extent possible through electronic means, its advance rulings on tariff classification and any other related matters that the Parties may agree, subject to any confidentiality requirements established in their laws. 8. Advance rulings may be modified or revoked when:
(a) has been based on false information;
(b) the decision is based on incorrect information;
(c) change in the facts or circumstances on which the determination is based; or
(d) The advance ruling must comply with an administrative or judicial decision or conform to a change in the law of the Party that has issued the advance ruling.
9. Each Party shall provide that any modification or revocation of an advance ruling shall take effect from the date on which it is issued or from such later date as the ruling itself may provide.
10. Each Party shall provide that, when an advance ruling is issued to a person who has falsely stated or omitted relevant facts or circumstances on which the ruling is based, or has not acted in accordance with the terms and conditions of the ruling, the customs authority that issued the advance ruling may apply the appropriate measures under the legislation of each Party.
11. A Party may decline to issue an advance ruling if the facts and circumstances that form the basis for the advance ruling are subject to administrative or judicial review. The Party that refrains from issuing an advance ruling shall promptly notify the requester in writing, setting forth the relevant facts and the basis for its decision to refrain from issuing the advance ruling.
12. All matters relating to advance rulings shall be determined by the laws of the Parties, in accordance with the WCO guidelines on advance rulings. These procedures will be published and will be available upon request.
Article 4.13. COMMITTEE ON RULES AND PROCEDURES OF ORIGIN, TRADE FACILITATION AND TRADE, TECHNICAL COOPERATION AND MUTUAL ASSISTANCE IN CUSTOMS MATTERS
1. The Parties establish a Committee on Rules and Procedures of Origin, Trade Facilitation, Technical Cooperation and Mutual Assistance in Customs Matters (hereinafter referred to as the Committee), composed of representatives of each Party.
2. The functions of the Committee shall include, inter alia:
(a) monitor the implementation and administration of Chapter 3 (Rules of Origin and Origin Procedures), Chapter 4 (Customs Administration and Trade Facilitation) and Annex 4-A;
(b) review and recommend to the Commission any modifications to Annex 3-A (Specific Rules of Origin), including in cases where amendments are made to the Harmonized System;
(c) review and recommend to the Commission any modifications to Chapter 3 (Rules of Origin and Origin Procedures) due to changes in production processes or other matters;
(d) seek a mutually satisfactory solution when differences arise between the Parties on matters covered by the Chapters and Annex referred to in subparagraph (a). With respect to the tariff classification of goods, if the matter is not resolved in the course of these consultations, it shall be referred to the Harmonized System Committee of the WCO. Such decisions shall be binding on the Parties concerned;
(e) at the request of a Party, resolve any matter arising under the Chapters and Annex referred to in subparagraph (a), within a period of thirty (30) days, counted from the submission of the request, extendable by mutual agreement for a maximum of one (1) equal period;
(f) in such matters as may be required, propose to the Commission alternative solutions to the obstacles or inconveniences related to the Chapters and Annex referred to in subparagraph (a) that arise between the Parties;
(g) to prepare draft uniform regulations for consideration and approval by the Commission;
(h) to deal with any other matter relating to the Chapters and Annex referred to in subparagraph (a); and
(i) to deal with any other matter instructed by the Commission.
3. Unless otherwise agreed by the Parties, the Committee shall meet at least once a year, on the date and according to the agenda previously agreed by the Parties. The Parties shall determine those cases in which extraordinary meetings may be held.
4. The meetings may be held by any means agreed upon by the Parties. When they are face-to-face, they shall be held alternately in the territory of each Party, and it shall be the responsibility of the host Party to organize the meeting. The first meeting of the Committee shall be held no later than one year after the date of entry into force of this Agreement.
Chapter 5. SANITARY AND PHYTOSANITARY MEASURES
Article 5.1. OBJECTIVES
The objectives of this Chapter are:
(a) protect human, animal and plant life and health in the territory of the Parties;
(b) within the scope of application of Sanitary and Phytosanitary Measures (hereinafter referred to as SPS), to facilitate trade between the Parties, so that SPS measures do not constitute an obstacle;
(c) collaborate for a better implementation of the SPS Agreement;
(d) develop mechanisms and procedures for the expeditious resolution of problems that arise between the Parties as a result of the implementation of SPS measures;
(e) strengthen communication and collaboration between the competent authorities of the Parties on sanitary and phytosanitary matters;
(f) Expand business opportunities by providing a forum in which:
(i) sanitary and phytosanitary matters are discussed; and
(ii) to facilitate the resolution of commercial matters.
Article 5.2. RIGHTS AND OBLIGATIONS
The Parties shall be governed by the provisions of this Chapter, and in accordance with the provisions of Article 1.3 (Relationship to Other International Agreements), reaffirm their existing rights and obligations under the SPS Agreement.
Article 5.3. SCOPE
This Chapter shall apply to all SPS measures of a Party that may directly or indirectly affect trade between the Parties.
Article 5.4. TRANSPARENCY AND EXCHANGE OF INFORMATION
1. The Parties shall:
(a) ensure transparency in the application of SPS measures affecting trade and, in particular, of sanitary and phytosanitary requirements applied to imports from the other Party;
(b) exchange information on matters related to the development and application of SPS measures, including the progress of new technical and scientific evidence available, which affect or may affect trade between the Parties, in order to minimize negative effects on trade;
(c) upon request of the other Party, communicate within 30 working days the approval and verification procedures and requirements that apply to the importation of specific products, including, if necessary, those relating to the conduct of a risk assessment.
2. The exchange of information shall be deemed to have taken place when the information referred to in this Article:
(a) the WTO has been notified in accordance with the relevant rules; or
(b) has been made available to the public on the official website for SPS matters of a Party and access is free of charge;
3. The Points of Contact for the exchange of information referred to in this Article are set forth in Annex 5-B. Responses to requests for information shall be sent by mail, fax or e-mail to the addresses reported by the Contact Points. Information sent by e-mail may be electronically signed and shall be sent only between the Contact Points.
Article 5.5. PROCEDURES FOR THE IMPORTATION, CONTROL, INSPECTION AND APPROVAL
1. The importing Party shall ensure that the other Party complies with the sanitary and phytosanitary requirements it has established for importation.
2. The importing Party shall ensure that import approval, inspection and certification requirements are applied in a non-discriminatory manner.
3. The importing Party shall provide the exporting Party with information related to the requirements and procedures necessary for the import approval process, including those for:
(a) obtain sanitary eligibility and/or phytosanitary recognition; (b) the need or not to carry out a risk assessment; and
(c) the approval processes of production chains and/or approval of establishments no later than 30 days after the request of the exporting Party.
4. When the import requirements or their modifications include a risk assessment, and the documentation for the sanitary eligibility process, phytosanitary recognition, and/or approval of establishments of the exporting Party has been received from the importing Party, the referred importing Party shall proceed to carry out said assessment, at the latest in one month counted from the reception of the documentation. The importing Party shall communicate the results of the process within the term agreed upon by the Parties.
5. When the importing Party has concluded that the products of the exporting Party meet its sanitary and phytosanitary import requirements, it shall authorize, within 60 days, the importation of such products.
6. In the event that the evaluation process does not conclude favorably, the Importing Party shall provide the scientific evidence on which it based its decision. The Parties shall review this evidence in order to find a mutually agreed solution. Otherwise, they shall proceed to consultations in accordance with Article 5.8.
7. Once sanitary eligibility and/or phytosanitary recognition has been obtained, the exporting party may submit a request for approval of other establishments to the importing party.
8. The Parties shall form an Ad Hoc Working Group for the purposes set forth in paragraph 9, which shall meet within 60 days following the entry into force of this Agreement, in order to define its schedule, rules of procedure and work agenda.
9. Once the Working Group has been formed, it will establish in a period of no more than 180 days:
(a) the procedures not yet agreed upon in the SPS Chapter, with their respective deadlines, for the sanitary eligibility process and/or phytosanitary recognitions; and
(b) the processes of approval of production chains and/or approval of establishments, inspection and certification of imports, including the need or not to carry out a risk assessment.
In the event that the Working Group does not reach agreement on the procedures and deadlines for the sanitary eligibility process and/or phytosanitary recognitions, and the processes for approval of production chains and/or approval of establishments after the aforementioned period, technical consultations will be held before the Committee on Sanitary and Phytosanitary Measures (hereinafter referred to as the SPS Committee) of this Agreement.
Article 5.6. RISK ASSESSMENT AND DEFINITION OF SPSM MEASURES
1. In furtherance of Article 5 of the SPS Agreement, the Parties reaffirm that any measures adopted by them must be based on an appropriate risk assessment and/or standards, guidelines or information from relevant international organizations.
2. Any updating of risk assessments in situations where there is an established, regular and substantial trade in goods between the Parties shall not be a reason for the Parties to establish a risk assessment for the interruption of trade in such goods, except in the case of a sanitary or phytosanitary emergency.
3. In the absence of risk assessment by the importing Party to support the adoption of any measure related to products of the exporting Party, the exporting Party may submit scientific evidence to support the risk assessment process of the importing Party.
4. In the case of emergency sanitary or phytosanitary measures, where relevant scientific evidence is insufficient, the Parties shall seek to obtain the additional information necessary for a more accurate risk assessment to enable the importing Party to revise the emergency SPS measure accordingly.
Article 5.7. REGIONALIZATION
1. The Parties shall recognize the concept of pest or disease free areas, and areas of low pest or disease prevalence, in accordance with the SPS Agreement, OIE and IPPC recommendations, guidance or guidelines. In order to establish the procedures for the recognition of such areas the Parties agree to create an Ad hoc Working Group which shall formulate a work plan, including a timetable, no later than three months after the entry into force of this Agreement.
2. Pending the definition of the procedures referred to in the preceding paragraph, the Parties shall apply the Guidelines of the International Organizations of reference, as the case may be.
3. The exporting Party shall provide sufficient evidence, in accordance with the provisions of this Article, for the purpose of demonstrating to the importing Party the existence of pest or disease free areas or areas of low pest or disease prevalence. For these purposes, the importing Party shall rely on the technical dossiers approved by the international reference bodies, when they exist.
4. In determining such areas, the Parties shall consider factors such as geographical location, ecosystems, epidemiological surveillance and the effectiveness of sanitary and phytosanitary controls in the area.
5. In the event that the importing Party does not approve the exporting Party's recognition, upon request of the exporting Party, the importing Party shall provide the information on which it based its decision; and shall attend consultations as soon as possible, in order to evaluate an alternative mutually agreed solution.
6. The exporting Party shall provide sufficient evidence to objectively demonstrate to the importing Party that such areas are pest or disease free areas, or areas of low prevalence, respectively. For this purpose, access shall be provided, upon request, to the importing Party for inspection, testing and other relevant procedures.
7. In the event that outbreaks or re-infestations occur in areas recognized as free of pests or diseases, the Parties, following the procedures established by the Ad hoc Working Group or international reference bodies, shall apply SPS measures to mitigate the risk.
Article 5.8. TECHNICAL CONSULTATIONS
1. At the request of any of the Parties when there is a sanitary or phytosanitary situation, which may generate limitations to bilateral trade, related to the formulation and implementation of SPS measures or the establishment of maximum limits of residues and contaminants and tolerances for the use of additives, consultations related to the situation shall be held within 30 working days following the request. These consultations will be carried out between the competent sanitary and phytosanitary authorities to avoid unnecessary limitations of trade flow and may consider options to facilitate the implementation or replacement of the measures applied, taking into account the experience of third countries and the recommendations of international reference bodies.
2. In the event that an Ad Hoc Working Group, as referred to in this Chapter, is unable to reach agreement on the issues under its responsibility, these issues, together with the information compiled and generated by the respective groups, shall be submitted to the technical consultation procedure defined in this Article.
Article 5.9. COMMITTEE ON SANITARY AND PHYTOSANITARY MEASURES
1. The Parties establish the SPS Committee to ensure and monitor the implementation of this Agreement and to consider any matter that may affect its compliance. The Committee may review this Chapter and make recommendations to the Parties for its modification.
2. The SPS Committee shall be composed of representatives designated by each Party. It shall meet on an ordinary basis at least once a year, unless the Committee establishes otherwise, and shall hold extraordinary meetings when requested by any of the Parties. The SPS Committee shall hold its first regular meeting no later than one year after the entry into force of this Agreement. At that meeting, the SPS Committee shall adopt its rules of procedure. The agenda and meeting place shall be agreed upon prior to the meetings of the Committee. The Committee may also meet on a non face-to-face basis, by video or audio conference, or any other means acceptable to the Parties.
3. The SPS Committee shall have the following functions:
(a) adopt a Work Plan for the development of this Agreement, which may be expanded and updated at the request of any of the Parties (1) ;
(b) monitor the implementation of the Work Plan and any other decisions approved by the aforementioned Committee;
(c) facilitate, at the request of either Party, consultations related to the formulation, adoption and implementation of the SPS measures of the other Party, which affect or could affect trade between the Parties, with a view to seeking mutually agreed solutions aimed at mitigating or attenuating their restrictive effect. This function shall be without prejudice to the provisions of Article 5.8;
(d) promote technical cooperation on sanitary and phytosanitary matters aimed at solving problems identified by the Parties and improving their institutional capacity;
(e) adopt and monitor the implementation of the guidelines, mechanisms and/or procedures established in this Chapter, and in general of its Annexes, within the agreed deadlines, or those subsequently agreed upon by the Parties, and approve any modifications thereto;
(f) develop an information mechanism to strengthen communications between the Parties and facilitate the follow-up of ongoing requests and processes;
(g) establish Ad-hoc Working Groups for the purpose of carrying out specific technical tasks; and shall determine the terms that shall guide the activity of these groups and shall resolve technical matters that have not been agreed upon by them;
(h) enhance mutual understanding of each Party's SPS measures and their implementation;
(i) to establish such other functions as the Parties may agree.
4. The Contact Points designated in Annex 5-B shall have the function of responding, during the intersessional periods of the Committee, to requests from the other Party related to problems arising from the implementation of this Chapter, and to coordinate with the competent authorities on possible solutions.
Article 5.10. SETTLEMENT OF DISPUTES
1. Where a Party considers that a sanitary or phytosanitary measure of the other Party is or may be inconsistent with its obligations under this Chapter, it may request technical consultations in the SPS Committee established under Article 10. The competent authorities identified in Annex 1 shall facilitate and conduct these consultations.
2. Unless the Parties agree otherwise, where a dispute is the subject of consultations in the SPS Committee pursuant to paragraph 1 of this Article, such consultations shall replace consultations under Chapter 21 (Dispute Settlement). Consultations in the SPS Committee established in Article 10 shall be deemed concluded 60 days after the date of submission of the request, unless both Parties agree to continue such consultations. These consultations may be held via teleconference, videoconference, or any other mechanism mutually agreed by the Parties.
Article 5.11. COMPOSITION OF THE SPS COMMITTEE
The SPS Committee shall be composed of representatives of the following competent authorities:
(a) For the Republic of Colombia: Ministry of Commerce, Industry and Tourism, the Colombian Agricultural Institute, the Institute for the Surveillance of Medicines and Food and the National Planning Department; and
(b) For the Republic of Panama: the Office of International Trade Negotiations of the Ministry of Commerce and Industries; the National Plant Health Directorate and the National Animal Health Directorate of the Ministry of Agricultural Development; the Panamanian Food Safety Authority; and the Food Protection Department of the Ministry of Health;
or their successors
Article 5.12. DEFINITIONS
For the purposes of this Chapter, the Parties shall apply the definitions and terms set forth herein:
(a) In the SPS Agreement;
(b) by the World Organization for Animal Health (OIE);
(c) In the International Plant Protection Convention (IPPC);