1. In order to maintain confidence in the effective implementation of this Chapter, each Party shall have the right to carry out audit and verification procedures of the exporting Party, which may include an assessment of all or part of the competent authorities' total control programme, including, where appropriate:
(a) reviews of the inspection and audit programmes; and
(b) on-site checks. These procedures shall be carried out in accordance with Implementing Arrangement: Chapter 7 E.
2. Each Party shall also have the right to carry out import checks for the purposes of implementing sanitary and phytosanitary measures on consignments on importation consistent with Article 84, the results of which form part of the verification process.
3. A Party may:
(a) share the results and conclusions of its audit and verification procedures and checks with countries that are not party to this Agreement;
(b) use the results and conclusions of the audit and verification procedures and checks of countries that are not party to this Agreement.
Article 83. Certification
Each consignment of animals, animal products, plants, plant products or other related goods will be accompanied, where required, by the relevant official sanitary or phytosanitary certificate using the model in Implementing Arrangement: Chapter 7 F and conforming with other relevant provisions of the Implementing Arrangements. The Parties may jointly determine principles or guidelines for certification. Any such principles shall be included in Implementing Arrangement: Chapter 7 F.
Article 84. Import Checks
1. The import checks applied to imported animals, animal products, plants and plant products or other related goods traded between the Parties shall be based on the risk associated with such importations. They shall be carried out in a manner that is least trade-restrictive and without undue delay.
2. The frequencies of import checks on such importations shall be made available on request. The importing Party shall notify the other Party in a timely manner of any amendment to the frequency of import checks in the event of change in the import risk. On request, an explanation regarding amendments shall be given or consultations shall be undertaken.
3. The Parties may record frequencies of import checks in Implementing Arrangement: Chapter 7 G and in that case they shall be applied accordingly. The Joint Management Committee may amend the frequencies of those import checks as a result of experience gained through import checks or otherwise, or as a result of actions or consultations provided for in this Chapter.
4. In the event that the import checks reveal non-conformity with the relevant standards and/or requirements, the action taken by the importing Party should be proportionate to the risk involved.
5. At the request of the exporting Party, the importing Party shall to the maximum extent ensure that officials of the exporting Party or their representatives are given the opportunity to contribute any relevant information to assist the importing Party in taking a final decision. If necessary, a joint testing of the preserved samples will be carried out by the Parties.
Article 85. Cooperation
1. Consistent with the objectives of this Chapter, the Parties shall explore opportunities for further cooperation in sanitary and phytosanitary matters of mutual interest.
2. In areas of mutual interest, the Parties through the Joint Management Committee agree to:
(a) share knowledge and experience including possible exchanges of officials;
(b) coordinate positions in the activities of regional and international organizations, and jointly develop, formulate and implement relevant standards and programmes;
(c) carry out joint research and share the results of such research in important areas, such as:
(i) animal and plant disease surveillance;
(ii) animal and plant pest and disease prevention and control;
(iii) detection methods for pathogenic micro-organisms in food;
(iv) surveillance and control of harmful substances and agrichemical and veterinary medicine residues and other food safety issues;
(v) any other food safety, phytosanitary and zoosanitary issues of mutual interest;
(d) carry out other forms of cooperation including those in relation to activities of the enquiry points established under Annex B of the SPS Agreement.
3. The Parties recognise that it is of significant importance to carry out technical assistance and capacity building so as to further strengthen bilateral sanitary and phytosanitary cooperation, and promote bilateral trade in agricultural products and food.
4. Understandings on technical assistance and cooperation projects reached by the Joint Management Committee will be recorded in Implementing Arrangement: Chapter 7 H and applied accordingly.
Article 86. Notification
1. The Parties shall inform each other through the contact points in a timely and appropriate manner when:
(a) there is a significant change in health status, including the distribution and host preference of diseases or pests in Implementing Arrangement: Chapter 7 C(2), to ensure continued confidence in the competence of the Party with respect to the management of any risks of transmission of disease or pest to the other Party which may arise as a consequence;
(b) there are scientific findings of importance with respect to diseases or pests which are not in Implementing Arrangement: Chapter 7 C(2), or new diseases or pests;
(c) any additional measures beyond the basic requirements of their respective sanitary or phytosanitary measures are taken to control or eradicate diseases or pests or to protect human health, and any changes in preventative policies, including vaccination policies.
2. In cases of serious and immediate concern with respect to human, animal or plant life or health, oral notification shall be made with urgency to the contact points and written confirmation should follow within 24 hours.
3. Where a Party has serious concerns regarding a risk to human, animal or plant life or health, consultations regarding the situation shall, on request, take place as soon as possible, and in any case within 14 days unless otherwise agreed between the Parties. Each Party shall endeavour in such situations to provide all the information necessary to avoid a disruption in trade, and to reach a mutually acceptable solution.
4. Where there is a non-compliance of imported consignments for products subject to sanitary or phytosanitary measures, the importing Party shall notify as soon as possible the exporting Party of the non-compliance.
5. Without prejudice to the preceding paragraphs of this Article and in particular paragraph 3, a Party may, on serious human, animal or plant life or health grounds, take provisional measures necessary for the protection of human, animal or plant life or health. These measures shall be notified in writing within 24 hours to the other Party and, on request, consultations regarding the situation shall be held within 8 days unless otherwise agreed by the Parties. The Parties shall take due account of any information provided through such consultations.
Article 87. Exchange of Information
1. The Parties, through the contact points, shall exchange information relevant to the implementation of this Chapter on a uniform and systematic basis, to provide assurance, engender mutual confidence and demonstrate the efficacy of the programmes controlled. Where appropriate, achievement of these objectives may be enhanced by exchanges of officials.
2. The information exchange on changes in the respective sanitary and phytosanitary measures, and other relevant information, shall include:
(a) opportunity to consider proposals for changes in regulatory standards or requirements which may affect this Chapter in advance of their finalisation. Where either Party considers it necessary, proposals may be dealt with in accordance with Article 88;
(b) briefing on current developments affecting trade;
(c) information on the results of the verification procedures provided for in Article 82;
(d) relevant sanitary and phytosanitary publications of the competent authorities.
3. Each Party shall facilitate the consideration in its relevant scientific forums of scientific papers or data submitted by the other Party to substantiate that Party's views or claims. Such submissions shall be evaluated by relevant scientific forums in a timely manner, and the results of that examination shall be made available to the Parties.
Article 88. Joint Management Committee
1. The Parties shall establish a Joint Management Committee which shall include representatives from the competent authorities of the Parties. The Committee shall be co-chaired by competent authorities' representatives of each Party. At the first meeting of the Committee, it will establish its rules of procedure.
2. The objective of the Committee is to facilitate bilateral trade in goods affected by sanitary or phytosanitary measures and to achieve this by giving practical effect to this Chapter, including through the establishment and monitoring of the application of Implementing Arrangements.
3. The Committee shall consider any matters relating to the implementation of this Chapter including:
(a) establishing, monitoring and reviewing work plans;
(b) establishing technical working groups as appropriate;
(c) initiating, developing, reviewing and modifying Implementing Arrangements which further elaborate the provisions of this Chapter;
(d) exchanging sanitary and phytosanitary information on bilateral trade;
(e) coordinating positions on important sanitary and phytosanitary issues in the WTO Committee on Sanitary and Phytosanitary Measures and in relevant international standards setting bodies;
(f) consulting with a view to resolving sanitary and phytosanitary issues arising in bilateral trade.
4. This Committee shall meet within one year of the entry into force of this Agreement and at least annually thereafter or as mutually determined by the Parties. It may meet in person, teleconference, video conference, or through any other means, as mutually determined by the Parties. The Committee may also address issues through correspondence.
5. The Committee may agree to establish technical working groups consisting of expert-level representatives of the Parties, which shall identify and address technical and scientific issues arising from this Chapter. When additional expertise is needed, the membership of these groups need not be restricted to representatives of the Parties.
6. Notwithstanding paragraph 5, the competent authorities may consult on and resolve issues. Where they consider it appropriate, they may discuss the establishment of a working group and the scope of its work for a possible recommendation to the Committee.
Chapter 8. Technical Barriers to Trade
Article 89. Definitions
For the purposes of this Chapter, the definitions set out in Annex 1 of the TBT Agreement shall apply. In addition:
competent authorities means the authorities described in Implementing Arrangement: Chapter 8 A that have responsibility for implementing this Chapter;
consigned directly in relation to goods means:
(a) goods that are transported without passing through the territory of a non-Party; or
(b) goods whose transport involves transit through one or more non-Parties with or without trans-shipment or temporary storage of up to 6 months in such non-Parties, provided that:
(i) the goods do not enter into trade or commerce there; and
(ii) the goods do not undergo any operation there other than unloading and reloading, repacking, or any operation required to keep them in good condition;
technical regulations also include standards that regulatory authorities recognise as meeting the mandatory requirements related to performance based regulations;
TBT Agreement means the Agreement on Technical Barriers to Trade, which is part of the WTO Agreement.
Article 90. Objectives
1. The objectives of this Chapter are to:
(a) increase and facilitate trade through furthering the implementation of the TBT Agreement;
(b) reduce, wherever possible, unnecessary costs associated with trade between the Parties; and
(c) promote regulatory cooperation to manage risks to health, safety and the environment.
2. These objectives will be achieved by:
(a) a framework and supporting mechanisms to address the impact of technical barriers to trade in goods;
(b) enhancing cooperation between the regulatory authorities of the Parties and standards and conformance bodies responsible for standards, technical regulations and conformity assessment procedures applicable to goods; and
(c) eliminating unnecessary technical barriers to trade in goods between the Parties.
Article 91. Affirmation of Tbt Agreement
The Parties affirm their existing rights and obligations with respect to each other under the TBT Agreement including the rights and obligations related to special and differential treatment and technical assistance to developing country Members.
Article 92. Scope
1. This Chapter applies to all standards, technical regulations and conformity assessment procedures that may, directly or indirectly, affect the trade in goods between the Parties, except as provided in paragraphs 2 and 3.
2. This Chapter does not apply to purchasing specifications prepared by governmental entities for production or consumption requirements of such entities of products purchased for governmental purposes and not with a view to commercial resale or with a view to use in the production of goods for commercial sale.
3. This Chapter does not apply to sanitary and phytosanitary measures which are covered by Chapter 7 (Sanitary and Phytosanitary Measures).
4. Nothing in this Chapter shall prevent a Party from adopting or maintaining, in accordance with its rights and obligations under the TBT Agreement, technical regulations, standards and conformity assessment procedures.
Article 93. Application
This Chapter applies to all goods that are manufactured or assembled in the territory of one or both Parties and are consigned directly between the Parties.
Article 94. International Standards
1. The Parties shall use international standards, or the relevant parts of international standards, as a basis for their technical regulations and related conformity assessment procedures where relevant international standards exist or their completion is imminent, except when such international standards or their relevant parts are ineffective or inappropriate to fulfil legitimate regulatory objectives.
2. The Parties shall cooperate with each other, where appropriate, in the context of their participation in international standardising bodies, to ensure that international standards developed within such organizations, that are likely to become a basis for technical regulations, are trade facilitating and do not create unnecessary obstacles to international trade.
3. The Parties shall strengthen communications and coordination with each other, where appropriate, in the context of discussions on international standards and related issues in other international forums, such as the WTO Committee on Technical Barriers to Trade ("WTO TBT Committee").
Article 95. Equivalence of Technical Regulations
1. Consistent with the TBT Agreement, each Party shall give positive consideration to accepting as equivalent, technical regulations of the other Party, even if these regulations differ from its own, provided that those technical regulations produce outcomes that are equivalent to those produced by its own technical regulations in meeting its legitimate objectives and achieving the same level of protection.
2. A Party shall, upon the request of the other Party, explain the reasons why it has not accepted a technical regulation of the other Party as equivalent.
3. The Parties shall strengthen communications and coordination with each other, where appropriate, in the context of discussions on the equivalence of technical regulations and related issues in international forums, such as the WTO TBT Committee.
Article 96. Regulatory Cooperation
1. Recognising the important relationship between good regulatory practices and trade facilitation, the Parties agree to seek to cooperate in the areas of standards, technical regulations, and conformity assessment to:
(a) promote good regulatory practice based on risk management principles;
(b) improve the quality and effectiveness of their technical regulations;
(c) develop joint initiatives, where the Parties consider it appropriate, for managing risks relating to health, safety, the environment and deceptive practices;
(d) build understanding and capacity to promote better regulatory compliance.
2. The Parties shall seek to implement paragraph 1 by establishing work programmes under Article 100, including to: (a) exchange information on:
(i) regulatory systems;
(ii) incident analysis;
(iii) hazard alerts;
(iv) product bans and recalls;
(v) domestic practices and programmes for product surveillance activities;
(vi) appropriate market information material on request; and
(vii) reviews of technical regulations and their implementation.
(b) cooperate on:
(i) good regulatory practice; and
(ii) the development and implementation of risk management principles including product monitoring, safety, compliance and enforcement practices.
3. Where goods are covered by an Annex or Implementing Arrangement to this Chapter and a Party takes a measure to manage an urgent problem that it considers those goods may pose to health, safety or the environment, it shall notify the other Party, through the contact point established under Article 100, of the measure and the reasons for the imposition of the measure, within the time limit specified in the relevant Annex or Implementing Arrangement.
Article 97. Conformity Assessment Procedures
1. The Parties agree to seek to increase efficiency, avoid duplication and ensure cost effectiveness through an appropriate range of mechanisms, including, but not limited to:
(a) facilitating recognition of cooperative arrangements between accreditation agencies from each other's territory;
(b) implementing unilateral recognition by one Party of the results of conformity assessments performed in the other Party's territory;
(c) implementing mutual recognition of conformity assessment procedures conducted by bodies located in the respective territories of the Parties;
(d) recognising accreditation procedures for qualifying conformity assessment bodies;
(e) supporting government recognition of conformity assessment bodies; and
(f) accepting suppliers' declarations of conformity, where appropriate.
2. The Parties shall seek to ensure that conformity assessment procedures applied between them facilitate trade by ensuring that they are no more restrictive than is necessary to provide an importing Party with confidence that products conform with the applicable technical regulations, taking into account the risk that non-conformity would create. Any agreements or arrangements on mutual recognition of conformity assessment concluded between the Parties under this Agreement shall be included in Annexes and Implementing Arrangements to this Chapter pursuant to Article 102.
3. The Parties may consult on such matters as the technical competence of the conformity assessment bodies involved, as appropriate to enhance confidence in the continued reliability of each other's conformity assessment results, before accepting results of a conformity assessment procedure.
4. A Party shall, on the request of the other Party, explain its reasons for not accepting the results of a conformity assessment procedure performed in the territory of that other Party.
5. Each Party shall accredit or otherwise recognise conformity assessment bodies in the territory of the other Party on terms no less favourable than those it accords to conformity assessment bodies in its territory.
6. If a Party accredits, or otherwise recognises a body assessing conformity with a particular technical regulation or standard and it refuses to accredit or otherwise recognise a body of the other Party assessing conformity with that technical regulation or standard, it shall, on request, explain the reasons for its refusal.
7. The Parties shall seek to cooperate in coordinating their procedures for issuing approvals of products, or otherwise recognising compliance with their mandatory requirements, with the objectives of reducing compliance and administrative costs, and for the effective monitoring of compliance with their legitimate regulatory objectives.
8. Where a Party declines a request from the other Party to enter into negotiations on facilitating recognition of the results of conformity assessment procedures conducted by bodies of the other Party, it shall, on request, explain its reasons.
9. The Parties shall ensure that any fees imposed for assessing the conformity of products originating in the territory of the other Party are equitable in relation to any fees chargeable for assessing the conformity of like products of national origin or originating in any other country, taking into account communication, transportation and the costs arising from differences between location of facilities of the applicant and the conformity assessment body.
10. The Parties, on request, shall notify each other of:
(a) any fees imposed for mandatory conformity assessments; and
(b) the anticipated processing period for any mandatory conformity assessments.
Article 98. Transparency
1. In order to enhance the opportunity for the Parties and interested persons to provide meaningful comments, a Party publishing a notice under Article 2.9 or 5.6 of the TBT Agreement shall:
(a) include in the notice a statement describing the objective of the proposal and the rationale for the approach that the Party is proposing;
(b) at the same time as it notifies WTO Members of the proposal pursuant to the TBT Agreement, transmit the notification electronically to the other Party through its enquiry point established under Article 10 of the TBT Agreement; and
(c) on request, make the text of any technical regulations and conformity assessment procedures based on a proposal available electronically to the other Party as soon as practicable after it becomes publicly available.
2. Each Party should allow at least 60 days from the transmission of the notification under paragraph 1(b) above for the other Party and interested persons to make comments on the proposal in writing.
3. A Party making a notification shall give timely and reasonable consideration to the comments of the other Party.
4. A Party shall explain its reasons for not accepting the comments of the other Party and transmit to the other Party through the enquiry point an electronic copy of the final proposal.
5. Where a Party makes a notification under Article 2.10 or 5.7 of the TBT Agreement, it shall at the same time transmit the notification to the other Party electronically, through its enquiry point referred to under paragraph 1(b).
6. Where a Party makes a notification under Article J of Annex 3 of the TBT Agreement, it shall transmit the notification electronically to the other Party through its enquiry point referred to in paragraph 1(b).
7. Each Party shall notify the other Party in a timely manner of up-to-date lists of accredited and/or designated certification bodies and testing laboratories and the respective conformity assessments that they are accredited and/or designated to undertake.
8. The Parties shall, through the contact points, exchange lists, which are updated in a timely manner, of:
(a) the mandatory requirements for conformity assessment procedures under their respective technical regulations that are within the scope specified in Implementing Arrangement: Chapter 8 B; and
(b) the test facilities and certification bodies that are accredited and/or designated to undertake those conformity assessment procedures.
9. The Parties shall seek to develop Implementing Arrangements that set out the criteria and processes for exchanging, on request and in relation to products or mandatory requirements not covered by paragraph 8, information on any conformity assessment procedures that are required under applicable technical regulations and the list of test facilities and certification bodies that are accredited and/or designated to undertake those conformity assessment procedures.
10. Each Party shall make available to the other Party, electronically or in any other form, up-to-date publications on technical regulations and any relevant standards or conformity assessment procedures that are cited in, or may be used to comply with, those technical regulations.