Chapter 3. RULES OF ORIGIN
Article 3.1: Definitions For the purposes of this Chapter: (a) Aquaculture refers to the fanning of aquatic organisms including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production, such as, inter alia, regular stocking, feeding, protection from predators; (b) Competent authority refers to: (i) for Serbia, the Ministry of Finance, Customs Administration or any other agency notified from time to time; and (ii) for the UAE, the Ministry of Economy or any other agency notified from time to time; (c) Consignment means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice; (d) Customs authority refers to: (i) for Serbia, the Ministry of Finance, Customs Administration; and (ii) for the UAE, the Federal Authority of Identity, Citizenship, Customs and Port Security; (e) Customs value refers to the value as determined in accordance with the Customs Valuation Agreement; (t) Generally accepted accounting principles refers to the recognised consensus or substantial authoritative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of infonnation and the preparation of financial statements. These standards may encompass broad guidelines of general application as well as detailed standards, practices and procedures; (g) Goods refers to any article of trade including materials and products; ;) r----3-1
(h) Indirect material refers to a material used in the production, testing, or inspection of goods but not physically incorporated into the goods, or the operation of equipment associated with the production of goods, including: (i) fuel and energy; (ii) tools, dies, and molds; (iii) spare parts and materials used in the maintenance of equipment; (iv) lubricants, greases, compounding materials, and other materials used m production or used to operate equipment; (v) gloves, glasses, footwear, clothing, and safety equipment and supplies; (vi) equipment, devices, and supplies used for testing or inspecting the goods; (vii) catalysts and solvents; and (viii) any other material that is not incorporated into the goods but for which the use in the production of the goods can reasonably be demonstrated to be a part of that production; (i) Manufacture refers to any kind of working or processing, including assembly or specific operations; U) Material refers to any ingredient, raw material, compound or part, etc., used in the production of goods; (k) Non-originating goods or non-originating materials refers to goods or materials that do not qualify as originating under this Chapter; (1) Originating goods or originating materials refers to goods or materials that qualify as originating under this Chapter; (m) Product refers to that which is obtained by growing, raising, mining, harvesting, fishing, aquaculture, trapping, hunting, extracting, or manufactured, even if it is intended for later use in another manufacturing operation; and (n) Production refers to growing, raising, mining, harvesting, fishing, aquaculture, trapping, hunting, manufacturing, working, processing, or assembling goods. 3-2
SECTION A: ORIGIN DETERMINATION Article 3.2: Originating Goods For the purpose of implementing this Agreement, goods shall be considered as originating in the territory of a Party, if: (a) goods are wholly obtained or produced there according to Article 3.3; or (b) goods are not wholly obtained or produced entirely there, provided that the goods have undergone sufficient working or processing according to Article 3.4; or (c) goods are produced entireiy there exclusively from originating materials and the goods satisfied all other applicable requirements of this Chapter. Article 3.3: Wholly Obtained or Produced Goods For the purposes of Article 3.2 (a) the following goods shall be deemed to be wholly obtained or produced in the territory of a Party: (a) plants, including aquatic plants, and plant products grown, collected and harvested there; (b) live animals born and raised there; (c) products obtained from live animals there; (d) mineral products and natural resources extracted or taken from that Party's soil, subsoil, waters, seabed, or beneath the seabed; (e) products obtained from hunting, trapping, collecting, capturing, fishing, or aquaculture conducted there; (f) products of aquaculture where the fish, crustaceans, molluscs and other aquatic invertebrates are born or raised there from eggs, larvae, fry of fingerling; (g) product of sea fishing and other marine products taken from outside the territorial waters of the Parties by a vessel and/or produced or obtained by a factory ship registered, recorded, listed, or licensed with a Party and flying its flag; (h) product, other than products of sea fishing and other marine products, taken or extracted from the seabed, ocean floor, or the subsoil of the continental shelf or the exclusive economic zone of any of the Parties, provided that the Party or Person has the right to exploit such seabed, ocean floor, or subsoil in accordance to international law; 3-3
(i) raw materials recovered from used goods collected there; (j) waste or scrap resulting from utilisation, consumption or manufacturing operations conducted there, fit only for recovery of raw materials; and (k) products produced or obtained there exclusively from products referred to in subparagraphs (a) through (j), or from their derivatives, at any stage of production. Article 3.4: Sufficient Working or Processing I. For the purposes of Article 3.2 (b ), goods shall be deemed to be originating if the goods satisfy any of the following: (a) a Change in Tariff Heading (CTH), which means that all non-originating materials used in the production of the goods have undergone a change in HS tariff classification at the 4-digit level; (b) a Qualifying Value Content (QVC) not less than 35% of the Ex-Works value; or (c) if the goods fall under an HS Code listed in the Product Specific Rules of Origin (hereinafter referred to as PSR) set out in Appendix 3A of this Agreement, then the goods shall fulfill the specific rule detailed therein. 2. For the purposes of paragraph 1, the QVC shall be calculated as follows: ExWorks Value -V. N. M QVC = ExWorks Value * lOO where: QVC is the qualifying value content of goods expressed as a percentage; Ex-Works price is the price paid for the goods ex-works to the manufacturer in the Parties in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used and all other costs related to its production, minus any internal taxes which are, or may be, repaid when the goods obtained is exported. Where the last working or processing has been subcontracted to a manufacturer, the term "manufacturer" refers to the enterprises that has employed the subcontractors; Where the actual price paid does not reflect all costs related to the manufacturing of the product which are actually incurred in the Party, the ex-works price means the sum of all those costs, minus any internal taxes which are, or may be, repaid when the product obtained is exported; V.N.M is the customs value of the non-originating materials at the time of importation, inclusive freight and insurance costs incurred in transporting the material to the importation port or place in the territory of the Party where the producer of the goods is located or the 3-4
earliest ascertained price paid or payable in the Party where the production of the goods takes place for all non-originating materials that are acquired by the producer in the production of the goods. When the producer of goods acquires non-originating materials within that Party the value of such materials shall not include freight, insurance, packing costs and any other costs incurred in transporting the material from the supplier's warehouse to the producer's location. Article 3.5: Intermediate Goods When the originating intermediate goods are used in the production of other goods, no account shall be taken of the non-originating materials contained in such �intermediate goods for the purposes of determining the originating status of the later goods. Article 3.6: Accumulation I. Originating goods of a Party which is used in the production in the territory of the other Party as material for finished goods shall be deemed as a material originating in the territory of the latter Party where the working or processing of the finished goods has taken place. 2. Notwithstanding paragraph l, an -originating material from a Party that does not undergo working or processing beyond the minimal or insufficient operations listed in Article 3.8 in the other Party shall retain its originating status of the former Party. Article 3.7: Tolerance I. Notwithstanding Article 3.4, goods will be considered to have undergone a change in tariff classification if the value ofall non-originating materials that are used in the production of the goods that do not undergo the applicable change in tariff classification does not exceed 20% of the Ex-Works price of the goods. 2. However, the value of non-originating materials referred to in paragraph 1 shall be included in the value of the non-originating materials for any applicable value added content requirement. Article 3.8: Insufficient Operations l. Whether or not the requirements of Article 3.4 are satisfied, goods shall not be considered to be originating in the territory of a Party if the following operations are undertaken exclusively by itself or in combination in the territory of that Party: (a) slaughter of animals, cutting of meat, or fish; (b) operations to ensure the preservation of products in good condition during transport and storage such as drying, freezing, ventilation, chilling, and like operations; d}-3-5
(c) sifting, simple classifying or sorting, washing, cutting, slitting, bending, coiling or uncoiling, sharpening, simple grinding, or slicing; (d) cleaning, including removal of oxide, oil, paint, or other coverings; (e) ironing or pressing the textiles; (f) simple painting and polishing operations; (g) testing or calibration; (h) placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards, or boards and all other simple packaging operations; (i) simple mixing of goods, whether or not of different kinds; G) simple assembly of parts of products to constitute complete goods or disassembly of products irno pan ; (k) changes of packing, unpacking or repacking operations, and breaking up and assembly of consignments; (1) engraving, affixing or printing marks, labels, logos, and other like distinguishing signs on goods or their packaging; (m) husking, partial or total bleaching, polishing, and glazing of cereals and rice; (n) peeling, removing seeds, stones, shells or cutting of fruit, nuts, and vegetables; (o) mere dilution with water or another substance that does not materially alter the characteristics of the goods; and (p) a combination of two or more operations specified above. 2. For the purposes of paragraph I, the term "simple" will be defined as the following: (a) (b) "Simple"' generally describes an activity which does not need special skills, machines, apparatus, or equipment especially produced or installed for carrying out the activity; and ��Simple mixing" generally describes an activity which does not need special skills, machine. apparatus or equipment especially produced or installed for carrying out the activity. However, simple mixing does not include chemical reaction. Chemical reaction means a process (including a biochemical process) which results in a molecule with a new structure by breaking intramolecuJar bonds and by forming new intramolecular bonds, or by altering the spatial a1Tangement of atoms in a molecule. 3-6
Article 3.9: Indirect Materials Any indirect materials used in the production of goods shall be treated as originating materials, irrespective of the origin of such indirect materials. Article 3.10: Accessories, Spare Parts, and Tools I. Accessories, spare parts, tools, and instructional or other information materials delivered with the goods that form part of the goods standard accessories, spare parts, tools, and instructional or other information materials shall be regarded as a part of the goods, and shall be disregarded in determining whether or not all the non-originating materials used in the production of the originating goods undergo the applicable change in tariff classification provided that: (a) The accessories, spare parts, tools, and instructional or other information materials are classified with and not invoiced separately from the goods; and (b) The quantities and value of the accessories, spare parts, tools, and instructional or other information materials presented with the goods are customary for the goods. 2. Notwithstanding paragraph 1, if the goods are subject to QVC requirement, the value of the accessories, spare parts, tools and instructional or other information materials shall be taken into account as originating or non-originating materials, as the case may be, in calculating the qualifying value content of the goods. Article 3.11: Packaging Materials and Containers for Retail Sale I. Each Party shall provide that packaging materials and containers in which goods are packaged for retail sale if classified with the goods accordin?g to Rule 5 of U1e General rules for the interpretation of the HS, shall be di regarded in determining whether all the non-originating materials used in the production of the goods undergo the applicable change ia tariff classification. 2. If the goods are subject to QVC requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the qualifying value content of the goods. Article 3.12: Packaging Materials and Containers for Shipment Each Party shall provide that packing materials and containers for shipment are disregarded in determining whether goods are originating. 3-7
Article 3.13: Fungible Goods and Materials l. Each Party shal I provide that the detenn ination of whether fungible goods or materials are originating shall be made through physical segregation of each product or material, or, in case of any difficulty, through the use of any inventory management method, such as averaging, last-in, first-out, or first-in, first out, recognised in the generally accepted accounting principles of the Party in which the production is perfonned, or otherwise accepted by the Party in which the production is perfonned. 2. Each Party shall provide that an inventory management method selected under paragraph 1 for particular fungible goods or materials shall continue to be used for those fungible goods or materials throughout the fiscal year of the Party that selected the inventory management method. Article 3. t 4: Sets of Goods Sets, as defined in General Rule 3 of the HS, shall be regarded as originating when all component goods are originating. However, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of non�originating products does not exceed 25% of the Ex-works price of the set. SECTION B: TERRITORIALITY AND TRANSIT Article 3. t 5: Principle of Territoriality I. The conditions for acquiring originating status set out in Article 3.2 must be fulfilled without interruption in the territory of the Party. 2. Where originating goods exported from the territory ofa Party to a non-Party, return to the exporting Party, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that the returning goods: (a) are the same as those exported; and (b) have not undergone any operation beyond that necessary to preserve them in good condition while in that non-Party or while being exported. 3. Notwithstanding paragraphs I through 2, the acquisition of originating status set out in Article 3.2 shall not be affected by working or processing done outside a Party on materials exported from a Party and subsequently re-imported there, provided: (a) the said materials are wholly obtained in any of the exporting Party or have undergone working or processing beyond the operations referred to in Article 3.8 prior to being exported; and 3-8
(b) it can be demonstrated to the satisfaction of the customs authorities that: (i) the re-imported goods have been obtained by working or processing the exported materials; and (ii) the total added value acquired outside the exporting Party by applying the provisions of this Article does not exceed 20% of the Ex-works price of the end product for which originating status is claimed; (c) the conditions set out in Article 3.2 shall not apply to working or processing done outside the exporting Party. However, where, a QVC rule is applied in determining the originating status of the end product, the total QVC achieved in the territory of the exporting Party, taken together with the total added value acquired outside this Party by applying this Article, shall not exceed the stated percentage for the QVC; and (d) factual information relevant to this Article will be indicated in the ProofofOrigin, in accordance with Appendix 3B of this Agreement. 4. For the purposes of applying the provisions of paragraph I, "total added value" shall be taken to mean all costs arising outside the exporting Party, including the value of the materials incorporated there. 5. Any working or processing of the kind covered by the provisions of this Article and done outside the Party shall be done under the outward processing arrangements or similar arrangements. Article 3.16: Transit and Transshipment I. The preferential treatment provided for under this Agreement shall apply only to products satisfying the requirements of this Chapter and declared for importation in a Party provided that those products are the same as those exported from exporting Party. They shall not have been altered, transformed in any way or subjected to operations other than to preserve them in good condition or than adding or affixing marks, labels, seals, or any documentation to ensure compliance with specific domestic requirements of the importing Party carried out under customs supervision in the third country(ies) of transit or splitting prior to being declared for home use. 2. Storage of products or consignment may take place provided they remain under customs supervision in the third country(ies) of transit. 3. Without prejudice to Section C of this Chapter, the splitting of consignment may take place, provided they remain under customs supervision in the third country(ies) of splitting. 4. In the case of doubt, the importing Party may request the importer or its representative to submit at any time all appropriate documents to provide evidence of compliance with this Article, which may be given by any documentary evidence, and notably by: 3-9
(a) contractual transport documents such as bills of lading; (b) factual or concrete evidence based on marking or numbering of packages; (c) a certificate of non-manipulation provided by the customs authorities of the country(ies) of transit or splitting or any other documents demonstrating that the goods remained under customs supervision in the country(ies) of transit or splitting; or (d) any evidence related to the goods themselves. Article 3.17: Free Economic Zones or Free Zones I. Both Parties shall take all necessary steps to ensure that originating goods traded under cover of a proof of origin which in the course of transport use a free zone situated in their territory, are not substituted by other goods and do not undergo hand I ing other than normal operations designed to prevent their deterioration. 2. Goods produced or manufactured in a free zone situated within a Party, shall be considered as originating goods in that Party when exported to the other Party provided that the treatment or processing is in conformity with the provisions of this Chapter and supported by a proof or origin. Article 3.18: Third Party Invoicing I. The customs authority in the importing Party shall not reject a certificate of origin only for the reason that the invoice was not issued by the exporter or producer of the goods provided that the goods meet the requirements in this Chapter. 2. If the invoice is made out by a third party different than the approved exporter, the origin declaration established in Article 3.23 can appear on any other commercial document issued by the approved exporter in the territory of the exporting Party, which describes the goods concerned in sufficient detail to enable them to be identified. 3. Other than in cases where the third party invoice was not issued at the time of issuance of the certificate of origin, the exporter of the goods shall indicate "third party invoicing" and such information as name and country of the company issuing the invoice shall appear in the appropriate field as detailed in Appendix 38 of this Agreement. 4. For greater certainty, "third party" means a person other than the exporter or producer of the goods. 3-10
SECTION C: ORIGIN CERTIFICATION Article 3.19: Proof of Origin I. Goods originating in a Party shall, on importation into the other Party, benefit from preferential tariff treatment under this Agreement on the basis of a Proof of Origin. 2. Any of the following shall be considered as a Proof of Origin: (a) a paper format certificate of origin issued by a competent authority as per Article 3.20; (b) an Electronic Certificate of Origin (E-Certificate) made by a competent authority and exchanged by a mutually developed electronic system as per Article 3.21; and (c) an origin declaration made out by an approved exporter as per Article 3.22. 3. Each Party shall provide that a ProofofOrigin shall be completed in the English language and shall remain valid for one year from the date on which it is issued. Article 3.20: Certificate of Origin in Paper Format I. A Certificate of Origin in paper format shall: (a) be in standard A4 white paper as per the attached Form set out in Appendix 38 of this Agreement; (b) comprise one original and two copies. The original shall be forwarded by the producer or exporter to the importer for submission to the customs authority of the importing Party. The duplicate shall be retained by the competent authority of the exporting Party. The triplicate shall be retained by the producer or exporter; (c) may cover one or more goods under one consignment; and (d) be in a printed format or such other medium including electronic format. 2. Each Certificate of Origin shall bear a unique serial reference number separately given by each place or office of issuance. 3. A Certificate of Origin shall bear an official seal of the competent authority. The official seal may be applied electronically. 4. In case the official seal is applied electronically, an authentication mechanism, such as QR code or a secured website, shall be included in the certificate for the certificate to be considered as an original copy. ll 3-11
Article 3.21: Electronic Data Origin Exchange System For the purposes of Article 3.19.2 (b) the Parties shall endeavour to develop an electronic system for origin infonnation exchange to ensure the effective and efficient implementation of this Chapter particularly on transmission of electronic certificate of origin. Article 3.22: Origin Declaration I. For the purposes of Artie le 3. 19 .2 (b ), the Parties shall, within one year from the date of entry into force of this Agreement, implement provisions allowing each competent authority to recognise an origin declaration made by an approved exporter. 2. The customs authorities of the exporting Party may authorise any exporter, (hereinafter referred to as "approved exporter"), who exports goods under this Agreement, to make out Origin Declarations, a specimen of which appears in Appendix JC of this Agreement, irrespective of the value of the goods concerned. 3. An exporter seeking such authorisation must offer to the satisfaction of the customs authorities all guarantees necessary to verify the originating status of the goods as well as the fulfilment of the other requirements of this Chapter. 4. The customs authorities of the exporting Party may grant the status of approved exporter, subject to any conditions which they consider appropriate. 5. The customs authorities of the exporting Party shall share or publish the list of approved exporters and periodically update it. 6. An Origin Declaration shall be made out by the Approved Exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, as deemed valid by the customs authority of the importing Party, which describe the goods concerned in such a detail so as to render it identifiable. Origin Declaration shall bear the authorisation number of the Approved Exporter, the name and the original signature of the person signing the declaration of origin in manuscript. An Origin Declaration may be made out by the Approved Exporter retrospectively within one year from the date of shipment. 7. The approved exporter making out an Origin Declaration shall be prepared to submit at any time, at the request of the customs authorities of the exporting Party, all appropriate documents proving the originating status of the goods concerned, as well as the fulfilment of the other requirements of this Chapter. Article 3.23: Application and Examination of Application for a Certificate of Origin I. Certificates of Origin shall be issued by the competent authority of the exporting Party, either upon an electronic application or an application in paper fonn, having been made by the exporter or under the exporter's responsibility by his or her authorised representative, in accordance with the domestic regulations of the exporting Party. 3-12
2. The exporter applying for the issuance of a Certificate of Origin shall be prepared to submit at any time, at the request of the competent authority of the exporting Party, all appropriate documents proving the originating status of the goods concerned, as well as the fulfilment of the other requirements of this Chapter. 3. The competent authority issuing Certificates of Origin shall take any steps necessary to verify the originating status of the goods and the fulfilment of the other requirements of this Chapter. For this purpose, it shall have the right to call for any evidence and to carry out any inspection of the exporter's accounting records, or any other check considered appropriate related to origin and according to the procedures of its domestic legislation. Article 3.24: Certificate of Origin Issued Retrospectively I. The Certificate of Origin shall be issued by the competent authority of the exporting Party prior to or at the time of shipment. 2. In exceptional cases where a Certificate of Origin has not been issued prior to or at the time of shipment, due to involuntary errors or omissions or other valid causes, the Certificate of Origin may be issued retrospectively within I year from the date of shipment, in which case it is necessary to indicate "ISSUED RETROSPECTIVELY" in the appropriate field as detailed in Appendix 38 of this Agreement. 3. The provisions of this Article shall be applied to goods which comply with the provisions of this Agreement, and which on the date of its entry into force, are either in transit or are in the territory of the Parties in temporary storage under customs control. This shall be subject to the submission to the customs authorities of the importing Party, within six months from the said date, of a Certificate of Origin issued retrospectively by the Competent Authority of the exporting Party together with documents, showing that the goods have been transported directly in accordance with the provisions of Article 3.16. Article 3.25: Loss of the Certificate of Origin 1. In the event of theft, loss, or destruction of a Certificate of Origin, the manufacturer, producer, exporter, or its authorised representative may apply to the Competent Authority, which issued it, for a certified true copy of the original Certificate of Origin to be made out on the basis of the export documents in possession of the competent authority. 2. The certified true copy of the original Certificate of Origin shall be endorsed with an official signature and seal and bear the words "CERTIFIED TRUE COPY" and the date of issuance of the original Certificate of Origin in appropriate field as detailed in Appendix 38 of this Agreement. The certified true copy of a Certificate of Origin shall be issued within the same validity period of the original Certificate of Origin. 3-13
Article 3.26: Importation by Installments Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing Party, dismantled or non-assembled products within the meaning of General Rule 2(a) of the HS are imported by installments, a single Proof of Origin for such products shall be submitted to the customs authorities upon importation of the first installment. Article 3.27: Treatment of Erroneous Declaration in the Certificate of Origin Neither erasures nor superimposition shall be allowed on the Certificate of Origin. Any alterations shall be made by issuing a new certificate of origin to replace the erroneous one. The reference number of the corrected Certificate of Origin should be indicated in the appropriate field on the newly issued Certificate of Origin as detailed in Appendix 38 of this Agreement. The validity of the replacement certificate will be the same as the original. Article 3.28: Treatment of Minor Discrepancies I. The discovery of minor discrepancies between the statements made in the Certificate of Origin and those made in the documents submitted to the customs authority of the importing Party for the purpose of carrying out the formalities for importing the goods shall not ipso facto invalidate the certificate of origin, if it does in fact correspond to the goods submitted. 2. Obvious formal errors, such as typing errors, on a Proof of Origin should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document. SECTION D: COOPERATION AND ORIGIN VERIFICATION Article 3.29: Denial of Preferential Tariff Treatment I. Except as otherwise provided in this Chapter, the customs authority of the importing Party may deny a claim for preferential tariff treatment or recover unpaid duties, in accordance with its laws and regulations, where: (a) the importer, if the goods fail or have failed to comply with any of the relevant requirements of this Chapter for obtaining preferential tariff treatment; (b) the competent or customs authority of the importing Party has not received reply from the exporting Party about verification request within the time period set out in Article 3.31.4, or if the reply does not contain sufficient information regarding-the authenticity of the Proof of Origin or originating status of the goods� or 3-14
( c) the reply of the exporting Party to a verification request detenn ines that the goods were not originating or that the Proof of Origin was not authentic. 2. When the customs authority of the importing Party denies a claim for preferential tariff treatment. it shal I provide the decision in writing to the importer that includes the reasons for the decision, if requested by the impo!ier. Article 3.30: Notification and Cooperation I. The Parties shal I, within 30 days prior to the date of entry into force of this Agreement: (a) provide each other with samples of Certificates of Origin including the information on the security features, specimen impressions of stamps used by the competent authority for the issue of certificates of origin, the models of the authorisation numbers granted to approved exporters, and the addresses of the customs authorities responsible for verificarion of origin; and (b) designate one or more contact points within its competent authority for the implementation of this Chapter and notify the other Party of the contact details of that contact point or those contact points. Each Party shall promptly notify the other Party of any change to thase contact details. 2. In order to ensure the proper application of this Chapter, the Parties shall assist each other, through their competent or customs authorities, in checking the authenticity of the certificates of origin and the origin declarations and the correctness of the information given in those documents. Article 3.31: Verification of Proofs of Origin I. Subsequent verifications of Proofs of Origin shall be carried out at random or whenever the customs authority of the importing Party has reasonable doubts as to the authenticity of such documents, the originating status of the goods concerned, or the fulfilment of the other requirements of this Chapter. 2. For the purposes of implementing the provisions of paragraph l of this Article, the customs authority or the competent authority of the importing Party, as the case may be, shall send a verification request to the competent authority of the exporting Party by e-mail or any other means that records receipt, including a copy of the Proof of Origin and the reasons for the inquiry. Any other document and information obtained suggesting that the infonnation given on the Proof of Origin is incorrect shall be sent in support of the request for verification. 3. The verification shall be carried out by the competent authority of the exporting Party. For this purpose, they shall have the right to carry out inspections at the exporter's or producer's premises, to call for any evidence, check the exporter's and the producer's accounting 3-15
records, or any other check considered appropriate related to origin and according to the procedures of its domestic legislation. 4. The customs authority or the competent authority of the importing Party, as the case may be, requesting the verification shall be informed of the results of this verification within six months of the date of the receipL of the verification reque t These results must indicate clearly whether the documents are authentic and whether the goods concerned can be considered as originating and fulfil the other requirements of this Chapter. 5. If the customs authority or the competent authority 0fthe importing Party. as the case may be, receives no reply wrthin thf? established peri.od or if the reply doe not contain sufficient information regarding the authenticity of the ProofofOrigrn or the originating status of the goods, or if the reply determines that the good were not originating or that the Proofs of Origin were not authentic, the customs cJULhority or the competent authority, as the case may be may deny preferenrial tariff treatment to the goods covered by the Proof of Origin which is subject to verification. Article 3.32: Record Keeping Requirement I. For the purposes of the verification process pursuant to Article 3 .31, each Party shall require that: (a) The manufacturer, producer. or exporter retain. for a period not less than three years from the date of issuance of the Proof of Origin, or a longer period in accordance with its domestic laws and regulations. al I supporting records necessary to prove that the goods for which the Proof of Origin was issued were originating; and (b) The importers shall retain, for a period not less than three years from the date of importation of the goods, or a longer period in accordance with its domestic laws and regulations, all records to prove that the goods for which preferential tariff treatment was claimed were originating; and (c) The competent authcrity or i!;suing authority retain, for a period not less than three years from the date of� issuance of the Proof of Origin or a longer perioJ in accordance with its domestic laws and regulations. all supporting records of the application for the Proof of Origin. 2. The records referred to in paragraph i may be maintained in any medium that allows for prompt retrieval, including but not limited to, digital, electronic, optical, magnetic, or written form. Article 3.33: Confidentiality I. All information related to the application of this Chapter communicated between the Parties shall be treated as confidential. It shall not be disclosed by the Parties' authorities without express permission of the person or authority providing it. 3-16
2. If a Party receives information designated as confidential in accordance with paragraph I, the Party receiving the information may nevertheless use or cLi close the infom1ation for law enforcement purposes or in the course of judicial proceedings, in accordance with the legislation of the Party. Article 3.34: Subcommittee on Rules of Origin I. A Subcommittee on Rules of Origin (hereinafter referred to as the "Subcommittee") is hereby established, consisting of representatives of each Party. The Subcommittee shall meet, in person or by any other technological means as determined by the Parties, at such times as agreed by the Parties and when they deem it appropriate, to consider matters arising under this Chapter. 2. The Subcommittee may consider any matter arising under this Chapter. 3. In relation to a matter refen-ed to in paragraph 2, the functions of the Subcommittee may include: (a) monitoring the implementation and operation of this Chapter; (b) revising the Product Specific Rules (PSR) list in Appendix 3A, on the basis of the transposition of the HS or at the request of either Party; (c) making recommendations to the Joint Committee with regards to matters of its competence; (d) developing "Explanatory Notes" for the interpretation and application of this Chapter; and (e) carrying out other functions as may be assigned by the Joint Committee or agreed by the Parties. 4. The Joint Committee shall establish the rules of working procedures of the Subcommittee. SECTION E: CONSULTATION AND MODIFICATIONS Article 3.35: Consultation and Modifications The Parties shall consult and cooperate as appropriate through the Joint Committee to: (a) ensure that this Chapter is applied in an effective and uniform manner; and (b) discuss necessary amendments to this Chapter, taking into account developments in technology, production processes, and other related matters. 3-17
Chapter 4. SANITARY AND PHYTOSANITARY MEASURES
Article 4.1: Definitions I. The definitions in Annex A of the SPS Agreement are incorporated into this Chapter and shall fonn part of this Chapter, mutatis mutandis. 2. In addition, for the purposes of this Chapter: (a) Competent authority means a government body of each Party responsible for measures and matters referred to in this Chapter; (b) Emergency measure means a sanitary or phytosanitary measure that is applied by an importing Party to the other Party to address an urgent problem of human, animal or plant life or health protection that arises or threaten to arise in the Party applying the measure; and (c) Contact point means the government body of a Party that is responsible for the implementation of this Chapter. Article 4.2: Objectives The objectives of this Chapter are to: (a) protect human, animal, or plant life or health in the territories of the Parties while facilitating trade between them; (b) enhance the collaboration on the implementation of the SPS Agreement; (c) strengthen communication, consultation, and cooperation between the Parties, and particularly between the Parties' competent authorities; (d) ensure that sanitary and phytosanitary measures implemented by a Party do not create unjustified barriers to trade; (e) enhance transparency in and understanding of the application of each Party's sanitary and phytosanitary measures; and (t) encourage the development and adoption of science-based international standards, guidelines, and recommendations, and promote their implementation by the Parties. Article 4.3: Scope This Chapter shall apply to all sanitary and phytosanitary measures ofa Party that may, directly or indirectly, affect trade between the Parties. 4-1
Article 4.4: General Provisions I. The Parties affinn their rights and obligations under the SPS Agreement. 2. Nothing in this Agreement shall limit the rights and obligations that each Party has under the SPS Agreement. 3. No Party shall have recourse to dispute settlement under Chapter 15 (Dispute Settlement) with respect to the obligations described in this Chapter. Article 4.5: Competent Authorities and Contact Points I. To facilitate communication on matters covered by this Chapter, each Party shall notify the other Party of its competent authority and contact point within 30 days from the entry into force of this Agreement. 2. Each Party shall infonn the other Party of any change in competent authority or in its contact point within a reasonable period of time. Article 4.6: Equivalence 1. The Parties recognise that the principle of equivalence, as provided for under Article 4 of the SPS Agreement, has mutual benefits for both exporting and importing countries. 2. The Parties shall follow the procedures for detennining the equivalence of SPS measures and standards developed by the WTO SPS Committee and relevant international standard setting bodies in accordance with Annex A of the SPS Agreement, mutatis mutandis. 3. Compliance by an exported product with SPS measures or standard of the exporting Party that has been accepted as equivalent to SPS measures and standards of the importing Party shall not remove the need for that product to comply with any other relevant mandatory requirements of the importing Party. Article 4.7: Risk Assessment I. Parties shall ensure that any SPS measure is applied only to the extent necessary to protect human, animal, or plant life or health, is based on scientific principles, and is not maintained without sufficient scientific evidence. . 2. Notwithstanding paragraph I, where relevant scientific evidence is insufficient, a Member may provisionally adopt SPS measures on the basis of available pertinent infonnation, including that from relevant international organisations as well as from SPS measures applied by other Members. In such circumstances the importing Party shall seek to obtain the additional infonnation necessary and taking into account available scientific evidence for a more objective assessment of risk and review the SPS measure within a reasonable 4-2
period of time. To this end, the importing Party may request scientific and other relevant infonnation from the exporting Party. Article 4.8: Emergency Measures I . If a Party adopts an emergency measure that is necessary for the protection of human, animal, or plant life or health, the Party shall promptly notify the measure in accordance with paragraph 2. If a Party adopts an emergency measure, it shall review that measure periodically and make available the results of that review to the other Party upon request. 2. The notification referred to in paragraph I shall be made: (a) by using the WTO SPS notification submission system, if the Party is a WTO Member; and (b) to the contact point designated under Article 4.5, if the Party is not a Member of the WTO. Article 4.9: Transparency I. The Parties recognise the value oftran:,parency in the adoption and application of sanitary and phytosanitary measures and the importance of sharing infonnation about such measures on an ongoing basis. 2.. In implementing this Article, each Party should take into account relevant guidance of the WTO SPS Committee and international standards, guidelines, and recommendations. 3. Each Party shall promptly notify the oiher Party of a proposed sanitary or phytosanitary measure that may have an effect on the trade of the other Party: (a) by using the WTO SPS notification submission system, if the Party is a WTO Member; and (b) to the contact point designated under Article 4.5, if the Party is not a Member of the WTO. 4. A Party shall provide to the other Party, on request, copies of sanitary and phytosanitary measures related to the importation of goods into that Party's territory. Article 4. 10: Cooperation I. The Parties shall explore opportunities for further cooperation, collaboration, and infonnation exchange between them on sanitary and phytosanitary matters of mutual interest, consistent with this Chapter. The Parties shall cooperate to facilitate the implementation of this Chapter. 4-3
2. The Parties shall cooperate and may jointly identify work on sanitary and phytosanitary matters with the goal of eliminating unnecessary obstacles to trade between the Parties. 4-4
Chapter 5. CHAPTERS TECHNICAL BARRIERS TO TRADE
Article 5.1: Definitions
For the purposes of this Chapter, the definitions shall be those contained in Annex I of the TBT Agreement. Article 5.2: Objectives The objective of this Chapter is to facilitate trade, including by eliminating unnecessary technical barriers to trade, enhancing transparency, and promoting greater regulatory cooperation and good regulatory practices. Article 5.3: Scope I. This Chapter shall apply to the preparation, adoption, and application of all standards, technical regulations, and conformity assessment procedures of central level government bodies that may affect trade in goods between the Parties. 2. Notwithstanding paragraph \, this Chapter shall not apply to: (a) purchasing specifications prepared by a governmental body for its production or consumption requirements which are covered by Chapter 10 (Government Procurement); or (b) sanitary or phytosanitary measures which are covered by Chapter 4 (Sanitary and Phytosanitary Measures). Article 5.4: Affirmation of the TBT Agreement The Parties affirm their existing rights and obligations with respect to each other under the TBT Agreement. Article 5.5: International Standards I. Each Party shall use relevant interna.:ional standards, guides, and recommendations, to the extent provided in Articles 2.4 and 5.4 of the TBT Agreement, as a basis for its technical regulations and conformity assessment procedures. 2. In determining whether an international standard, guide, or recommendation within the meaning of Articles 2 and 5 and Annex 3 of the TBT Agreement exists, each Party shall base its determination on the principles set out in the "Decision of the Committee on 5-1
Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex 3 of the Agreement", adopted on 13 November 2000 by the WTO Committee on Technical Barriers to Trade (Annex 2 to PART I of G/TBT/l/Revl3), and any subsequent version thereof. 3. The Parties shall encourage cooperation between their respective national standardising organisations in areas of mutual interest, in the context of their participation in international standardising bodies, to ensure that international standards developed within such organisations are trade facilitating and do not create unnecessary obstacles to international trade. Article 5.6: Technical Regulations I. The Parties shall use international standards as a basis for preparing their technical regulations, unless those international standards are ineffective or inappropriate for achieving the legitimate objectivie �ursued. Each Party shall, upon request of the other Party, provide its reasons for not having used international standards as a basis for preparing its technical regulations. 2. Each Party shall give positive consideration to a request by the other Party to negotiate arrangements for achieving the equivalence of technical regulations. 3. Each Party shall, upon request of the other Party, explain the reasons why it has not accepted a request by the other Party to negotiate such arrangements. 4. 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 fora, such as the WTO Committee on Technical Barriers to Trade. Article 5.7: Conformity Assessment Procedures 'I. The Parties recognise that, depending on the specific sectors involved, a broad range of mechanisms exists to facilitate the acceptance in a Party's territory of the results of conformity assessment procedures conducted in the other Party's territory. Such mechanisms may include: (a) recogmsmg ex1stmg international multilateral recognition agreements and arrangements among conformity assessment bodies; (b) promoting mutual recognition of conformity assessment results by the other Party, through recognising the other Party's designation of conformity assessment bodies; (c) encouraging voluntary arrangements between conformity assessment bodies in the territory of each Party; 5-2
(d) accepting a supplier's declaration of conformity where appropriate; ( e) harmonising criteria for the designation of conformity assessment bodies, including accreditation procedures; or (f) other mechanisms as mutually agreed by the Parties. 2. Each Party shall ensure, whenever possible, that the results of conformity assessment procedures conducted in the territory of the other Party are accepted, even when those procedures differ from its own, provided that those procedures offer a satisfactory assurance of applicable technical regulations or standards equivalent to its own procedures. Where a Party does not accept the results of a conformity assessment procedure conducted in the territory of the other Party, it shall, on request of the other Party, explain the reasons for its decision. 3. In order to enhance confidence in the consistent reliability of conformity assessment results, the Parties may consult on matters such as the technical competence of the conformity assessment bodies involved. 4. Each Party shall give pos:tive consideration to a request by the other Party to negotiate agreements or arrangements for the mutual recognition of the results of their respective conformity assessment procedures. The Parties shall consider the possibility ofnegotiating agreements or arrangements for mutual recognition of the results of their respective conformity assessment procedures in areas mutually agreed upon. 5. The Parties shall endeavour _to intensify their exchange of information on acceptance mechanisms with a view to facilitati;ig the acceptance of conformity assessment results. Article 5.8: Cooperation I. The Parties shall strengthen their cooperation in the field of standards, technical regulations, and conformity assessment procedures with a view to: (a) increasing the mutual understanding of their respective systems; (b) enhancing cooperation between the Parties' regulatory agencies on matters of mutual interests including health, safety, and environmental protection; (c) facilitating trade by implementing good regulatory practices; and (d) enhancing cooperation, as appropriate, to ensure that technical regulations and conformity assessment procedures are based on international standards or the relevant parts of them and do not create unnecessary obstacles to trade between the Parties. 2. In order to achieve the objectives, set out in paragraph I, the Parties shall, as mutually agreed and to the extent possible, co-operate on regulatory issues, which may include the: 5-3
(a) promotion of gcod regulatory practices based on risk management principles; (b) exchange of information with a view to improving the quality and effectiveness of their technical regulations; (c) development of joint initiatives for managing risks to health, safety, or the environment, and preventing deceptive practices; and (d) exchange of market surveillance information where appropriate. 3. The Parties shall rncourage cooperation between their respective organisations responsible for standardisation, conformity '1Sstssment, accreditation, and metrology, with the view to facilitating trade and avoiding unnecessary obstacles to trade between the Parties. Article 5.9: Transparency I. Each Party shall, upon request of the other Party, provide information, including the objective of, and rationale for, a, technical regulation or conformity assessment procedure which the Party has adopted or proposes to adopt and may affect the trade between the Parties, within a reasonable period of time as agreed between the Parties. 2. When a proposed technical regulation is submitted for public consultation or notified to the WTO, a Party shall give appropriate consideration to the comments received from the other Party, and, upon request of the other Party, provide written answers to the comments made by the other Party. 3. The Parties shall ensure that all adopted technical regulations and conformity assessment procedures are publicly available. Article 5.10: Contact Points 1. For the purposes of this Chapter, the contact points are: (a) For Serbia: the Sector for Quality and Product Safety, the Ministry of Economy, the contact point for standards is the Institute for Standardization of Serbia, or its successor; and (b) For the UAE: the Standards and Regulation Sector, the Ministry of Industry and Advanced Technology, or its successor. 2. ? Each Party shall promptly notify the other Party of any change of its contact point. 5-4
Article 5.11: Information Exchange and Technical Discussions I. Any infonnation or explanation that a Party provides upon request of the other Party pursuant to this Chapter shall be provided in print or electronically within a reasonable period of time. Each Party shall endeavour to respond to such a request within 60 days. 2. All communication between the Parties on any matter covered by this Chapter shall be conducted through the contact points designated under Article 5. I 0. 3. On request of a Party for technical discussions on any matter arising under this Chapter, the Parties shall endeavour, to the extent practicable, to enter into technical discussions by notifying the contact points dP.signated under Article 5.10. 5-5
Chapter 6. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 6.1: Definitions For the purpose of this Chapter: ? (a) Authorised Economic Operator(s) (AEO) means the program which recognises an operator involved in the international movement of goods in whatever function that has been approved by the national Customs Administration as complying with the World Customs Organization (WCO) or equivalent supply chain security standards; (b) Customs legislations means prov1s1ons implemented by laws and regulations concerning the importation, exportation, transit of goods, or any other customs procedures whether refating to customs duties, taxes or any other charges collected by the Customs Administrations, or to measures for prohibition, restriction, or control enforced by the Customs Administrations; (c) Customs Mutual Assistance Agreement (CMAA) means the agreement that further enhances customs coo�eration and exchange of information between the parties to secure and facilitate lawful trade; (d) Customs procedure means the measures applied by the customs authority of a Party to goods and to the means of transport that are subject to its customs legislations and regulations; (e) Mutual Recognition Arrangement (MRA) means the arrangement between the Parties that mutually recognise AEO authorisations that has been properly granted by one of the Customs Administrations; and (f) Persons means both natural and legal person, unless the context otherwise requires. Article 6.2: Scope This Chapter shall apply, in accordance with the Parties' respective national laws, rules, and regulations, to customs procedures required for clearance of goods traded between the Parties. Article 6.3: General Provisions 1. Parties agree that their customs legislations and procedures shall be transparent, non�discriminatory, consistent, and avoid unnecessary procedural obstacles to trade. 2. Customs procedures of the Parties shall conform where possible, to the standards and recommended practices of the World Customs Organization ("WCO"). 6-1
3. The Customs Administration of each Party shall periodically review its customs procedures with a view to their further simplification and development to facilitate bilateral trade. Article 6.4: Publication and Availability of Information I. Each Party shall ensure that its laws, regulations, guidelines, procedures, and administrative rulings governing customs matters are promptly published, either on the Internet or in print fonn in the English language, to the extent possible. 2. Each Party shall designate, establish, and maintain one or more inquiry points to address inquiries from interested persons pertaining to customs matters, and shall endeavour to make available publicly through electronic means, infonnation concerning procedures for making such inquiries. 3. Nothing in this Article or in any part of this Agreement shall require any Party to publish law enforcement procedures and internal operational guidelines including those related to conducting risk analysis and targeting methodologies. 4. Each Party shall, to the extent practicable, and in a manner consistent with its domestic law and legal system, ensure that new or amended laws and regulations of general application related to the movement, release,.and clearance of goods, including goods in transii, are published or information on them made otherwise publicly available, as early as possible before their entry into force, so that interested parties have the opportunity to become acquainted with the new or amended laws and regulations. Such information and publications shall be available in the English language, to the extent possible. Article 6.5: Risk Management The Parties shall adopt a risk management approach in its customs activities, based on its identified risk of goods, in order to facilitate the clearance of low risk consignments, while focusing its inspection activities on high-risk goods. Article 6.6: Paperless Communications t. For the purposes of facilitating bilateral exchange of international trade data and expediting procedures for the release of goods, the Parties shall, endeavour to provide an electronic environment that supports Customs clearance between their respective Customs Administration and their trading entities. 2. The Parties shall exchange views and information on realising and promoting paperless communications between their respective Customs Administration and their trading entities. 6-2
3. The respective customs administration of the Parties, in implementing initiatives which provide for the use of paperless communications, shall take into account the methodologies agreed at the WCO. Article 6.7: Advanced rulings I. In accordance with the TFA, the customs administration of the Parties upon a request shall issue in a reasonable time-bound manner, prior to the importation of goods into their territory based on a request containing all the necessary information an advance ruling, in relation to: (a) tariff classification; (b) origin of goods; and (c) other matters the Parties may agree such as the application of valuation criteria for a particular case, in accordance with the application of-the provisions set forth in the Customs Valuation Agreement. 2. The importing Party shall apply an advance ruling issued by it under paragraph I on the date that the ruling is issued or on a later date specified in the ruling and remain in effect for a reasonable period of time and in accordance with the national procedures on advanced ruling unless the advance ruling is modified, revoked or annulled in accordance with paragraph 5 and 7. 3. The advance ruling issued by the Party shall be binding to the person to whom the ruling is issued only. 4. A Party may decline to issue an advance ruling if the facts and circumstances forming the basis of the advance ruling are the subject of a post clearance audit or an administrative or judicial, review or appeal. A Party that declines to issue an advance ruling shall promptly notify, in writing, the person requesting the ruling, setting out the relevant facts and circumstances and the basis for its decision. 5. The customs authority of the importing Party may modify, revoke, or annul an advance ruling, in accordance with its domestic laws and regulations: (a) if the ruling was based on an error of fact; (b) if there is a change in the material facts or circumstances on which the ruling was based; (c) to conform with a modification of this Agreement; or (d) to conform with a judicial decision or a change in its domestic law. 6-3
6. Each Party shall provide written notice to the applicant explaining the Party's decision to revoke, modify, or annul the advance ruling issued to the applicant. 7. Each Party sh al I provide that any modification or revocation of an advance ruling shall be effective on the date on which the modification or revocation is issued, or on such later date as may be specified therein, and shall not be applied to importations of goods that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted in accordance with its tenns and conditions, in which case it may be annulled and shall take effect from the date on which the initial decision took effect, unless otherwise specified in the decision in accordance with domestic laws and regulations. 8. Notwithstanding paragraph 3, the issuing Party shall postpone the effective date of the modification or revocation of an advance ruling for a reasonable period of time and in accordance with each Party's national procedures on advance rulings, where the person to whom the advance ruling was issued demonstrates that he has relied in good faith to his detriment on that ruling. Article 6.8: Penalties I. ? Each Party shall maintain measures imposing criminal, civil, or administrative penalties, whether solely or in combination, for violations of the Party's customs legislations, regulations, or procedural requirements. 2. Each Party shall ensure that penalties issued for a breach of customs legislations, regulations, or procedural requirements are imposed only on the person(s) responsible for the breach under its laws. 3. Each Party shall ensure that the penalty imposed by its customs administration is dependent on the facts and circumstances of the case and is commensurate with the degree and severity of the breach. 4. Each Party shall ensure that it maintains measures to avoid conflicts of interest in the assessment and collection of penalties and duties. No portion of the remuneration of a government official shall be calculated as a fixed portion or percentage of any penalties or duties assessed or collected. 5. Each Party shall ensure that if a penalty is imposed by its customs administration for a breach of a customs legislation, regulation or procedural requirement, an explanation in writing is provided to the person(s) upon whom the penalty is imposed specifying the nature of the breach and the law, regulation, or procedure used for determining the penalty amount. Article 6.9: Release of Goods I. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade. 6-4
2. Pursuant to paragraph I, each Party shall adopt or maintain procedures that: (a) provide for the immediate release of goods upon receipt of the customs declaration and fulfilment of all applicable requirements and procedures; (b) provide for the electronic submission and processing of documentation and data, including manifests, prior to the arrival of the goods in order to expedite the release of goods from customs control upon arrival; (c) allow goods to be released at the point of arrival without requiring temporary transfer to warehouses or other facilities; and (d) � require that the importer be informed if a Party does not promptly release goods, including, to the extent permitted by its law, the reasons why the goods are not released and which border agency, if not the customs administration, has withheld release of the goods. 3. Nothing in this Article requires a Party to release goods if its requirements for release have not been met nor prevents a Party from liquidating a security deposit in accordance with its law. 4. Each Party may allow, to the extent practicable and in accordance with its customs legislation, goods intended for import to be moved within its territory under customs control from the point of entry into the Party's territory to another customs office in its territory from where the goods are intended to be released, provided the applicable regulatory requirements are met. Article 6.10: Authorised Economic Operators In order to facilitate trade and enhance compliance and risk management between them, the Parties shall endeavour to mutually conclude an AEO MRA. Article 6.11: Border Agency Cooperation Each Party shall ensure that its authorities and agencies responsible for border controls and procedures dealing with the importation, exportation, and transit of goods cooperate with one another and coordinate their activities in order to facilitate trade pursuant to this Chapter. Article 6.12: Expedited Shipments Each Party shall adopt or maintain expedited customs procedures for goods entered through air cargo facilities while maintaining appropriate customs control and selection. These procedures shall: 6-5
(a) provide for information necessary to release an express shipment to be submitted and processed before the shipment arrives; (b) allow a single submission of information covering all goods contained in an express shipment, such as a manife t through, if possible, electronic means;6 (c) to the extent possible, provide for the release of certain goods with a minimum of documentation; (d) under normal circumstances, provide for express shipments to be released as soon as possible after submission of the necessary customs documents, provided the shipment has arrived; (e) apply to shipments of any weight or value recognising that a Party may require formal entry procedures as a condition for release, including declaration and supporting documentation and payment of customs duties, based on the goods weight or value; and (f) provide that, under normal circumstances, no customs duties will be assessed on express shipments valued at or below a fixed amount set under the Party's law.7 Article 6.13: Review and Appeal l. Each Party shall, in accordance with its law and regulations, ensure that any person to whom it issues a determination on a customs matter has access to: ? (a) at least one level of administrative review of determinations by its customs administration independent8 of either the official or office responsible for the decision under review; and (b) judicial review of decisions taken at the final level of administrative review. 2. Each Party shall ensure that its procedures for appeal and review are carried out in a non�discriminatory and timely manner. 3. Each Party shall ensure than an authority conducting a review or appeal under paragraph I notifies the person in writing of its determination or decision in the review or appeal, and the reasons for the determination or decision. 6 Additional documents may be required as a condition for release. 7 Notwithstanding this Article, a Party may assess customs duties, or may require fonnal entry documents, for restricted or controlled goods, such as goods subject to import licensing or similar requirements. 8 The level of administrative review for the UAE may include the competent authority supervising the Customs Administration. 6-6
Article 6.14: Customs Cooperation I. With a view to further enhancing customs cooperation through the exchange of infonnation and the sharing of best practices between the customs administration to secure and facilitate lawful trade, the customs administrations of the parties will endeavour to conclude and sign aCMAA. 2. The Parties sh al I, for the purposes of applying customs legislations and to give effect to the provisions of this agreement, endeavour to: (a) cooperate and assist each other in the prevention and investigation of offences against customs legislations; (b) upon request, provide each other infonnation to be used in the enforcement of customs legislations; and (c) cooperate in the research, development, and application of new customs procedures, in the training and exchange of personnel, sharing of best practices, and in other matters of mutual interest. 3. Assistance under this Chapter shall be provided in accordance with the domestic law of the requested party. 4. The Parties shall exchange official contact points with a view to facilitating the effective implementation of this Chapter. Article 6.15: Confidentiality I. Nothing in this Agreement shall be construed to require a Party to furnish or allow access to confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests ofparticnlar enterprises, public or private. Any information received under this Agreement shall be treated as confidential. 2. Each Party shall maintain, in accordance with its domestic laws, the confidentiality of information obtained pursuant to this Chapter and shall protect that information from disclosure that could prejudice the competitive position of the persons providing the information.
Chapter 7. TRADE REMEDIES
Article 7.1: Scope
I. With respect to Serbia, this Chapter shall apply to investigations and measures that are taken under the authority of a Ministry in charge of foreign trade policy. 2. With respect to the UAE, this Chapter shall apply to investigations and measures that are taken under the authority of the Ministry of Economy or its successor. Article 7.2: Anti-Dumping and Countervailing Measures I. The rights and obligations of the Parties with regard to anti-dumping and countervailing measures shall be governed by Articles VI and Articles XVI of the GA TT 1994, the Anti�Dumping Agreement, and the SCM Agreement. 2. The Parties recognise the right to apply measures consistent with Article VI and Article XVI of the GATT 1994, the Anti-Dumping Agreement and the SCM Agreement, and the importance of promoting transparency in anti-dumping and countervailing duty investigations and of ensuring the opportunity of all interested parties to participate meaningfully in such investigations. 3. Except otherwise provided in this Article, this Agreement does not confer any additional rights or obligations on the Parties with regard to anti-dumping and counter,ailing measures including the initiation and conduct of anti-dumping and anti-subsidy investigations as well as the application of anti-dumping and/or countervailing measures. 4. When the investigating authority of a Party receives a written application by or on behalf of its domestic industry for the initiation of an anti-dumping investigation in respect of a good from the other Party, the former Party shall notify the other Party of the application as far in advance of the initiation of such investigation as possible. As soon as possible after accepting an application of an anti-subsidy investigation, and in any event before initiating an investigation, the Party shall provide written notification of its receipt of the application to the other Party and invite the other Party for consultations with the aim of clarifying the situation as to the matters referred to in the application and arriving at a mutually agreed solution. 5. The investigation authority of a Party shall ensure, before a final determination is made, disclosure of all essential facts under consideration which form the basis for the decision whether to applying definitive measures. This is without prejudice to Article 6.5 of the Anti-Dumping Agreement and Article 12.4 of the SCM Agreement. Disclosures shall be made in writing and allow interested parties sufficient time to make their comments. The investigating authority shall give due consideration to the comments submitted by the interested parties. The Parties agree, when imposing measures covered by this Chapter, to 7-1
give priority, to the extent possible, to measures that cause minimal economic injury and do not create serious obstacles to the implementation of this Agreement. Article 7.3: Global Safeguard Measures I. The rights and obligations of the Parties with regard to global safeguard measures shall be governed by the Article XIX of the GA TT 1994 and the Safeguards Agreement. This Agreement does not confer any additional rights or obligations on the Parties with regard to actions taken under Article XIX of the GATT 1994 and the Safeguards Agreement. 2. A Party taking a global safeguard measure shall exclude imports of originating goods of the other Party as long as its share of imports of the product concerned in the importing Party does not exceed three per cent of total imports of the concerned product, provided that developing.country Members with less than three per cent import share collectively account for not more than nine per cent of total imports of the product concerned. 3. Where, as a result of a global safeguard measure, a safeguard duty is imposed, the margin of preference, in accordance with the Schedules of Concessions of the Parties under Chapter 2 (Trade in Goods), shall be maintained. Article 7.4: Bilateral Safeguard Measures I. Where, as a result of the reduction or elimination of a customs duty under this Agreement, any product originating in a Party is being imported into the territory of another Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause serious injury or threat thereof to the domestic industry of like or directly competitive products in the territory of the importing Party, the importing Party may take bilateral safeguard measures to the extent necessary to remedy or prevent the injury, subject to the provisions of paragraphs 2 through 10. 2. Bilateral safeguard measures shall only be taken upon clear evidence that increased imports have caused or are threatening to cause serious injury pursuant to an investigation in accordance with the procedures laid down in the Agreement on Safeguards. 3. A Party shall notify the other Party in writing or by electronic means before: (a) taking the decision of initiation an investigation; (b) making findings of serious injury or threat of serious injury caused by increased imports; ( c) applying or extending the imposition of a bilateral safeguard; and (d) taking a decision to modify, including to progressively liberalise a bilateral safeguard measure. 7-2
4. The Party intending to take a bilateral safeguard measure under this Article shall immediately, and in any case, before taking a measure, including provisional one, make notification to the Joint Committee. The notification of the final measure shall contain all pertinent information, which shall include evidence of serious injury or threat thereof caused by increased imports, a precise description of the product involved and the proposed measure, as well as the proposed date of introduction, expected duration, and timetable for the progressive removal of the measure. 5. If the conditions set out in paragraph I are met, the importing Party may take measures consisting in: (a) suspending the further reduction of any rate of duty provided for under this Agreement for the product; or (b) increasing the rate of customs duty for the product to a level not to exceed the lesser of: (i) the MFN applied rate of custom duty on the product in at the date on which the bilateral safeguard measure is applied; or (ii) the MFN applied rate of custom duty in effect on the day immediately preceding the date of the entry into force of this Agreement. 6. Bilateral safeguard measures shall be taken for a period not exceeding two years. In very exceptional circumstances, after review by the Joint Committee, measures may be taken up to a total maximum period of three years. No measure shall be applied to the import of a product that has previously been subject to such a measure. 7. The Joint Committee shall, within 30 days from the date of notification referred to in paragraph 3, examine the information provided in order to facilitate a mutually acceptable resolution of the matter: In the absence of such resolution, the importing Party may adopt a measure pursuant to paragraph 4 to remedy the problem. In the selection of the bilateral safeguard measure, priority must be given to the measure that least disturbs the functioning of this Agreement. The bilateral safeguard measure shall be immediately notified to the Joint Committee and shall be the subject of periodic consultations in the Joint Committee, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit. 8. Upon the termination of the measure, the rate of customs duty for the origination goods subject to that safeguard measures which shall be the rate which according to the Party's schedules in Annexes I and II (Schedules of Tariff Commitments) would have been in effect but for the measure. 9. In critical circumstances, where delay would cause damage which would be difficult to repair, a Party may take a provisional bilateral safeguard measure pursuant to a preliminary determination that there is clear evidence that increased imports cause serious injury, or threat thereof, to the domestic industry. The Party intending to take such a measure shall 7-3
immediately notify the other Party and the Joint Committee thereof. Within 30 days of the date of the notification, the procedures set out in paragraphs 2 through 6 shall be initiated. I 0. Any provisional measure shall be terminated within 200 days at the latest. The period of application of any such provisional measure shall be counted as part of the duration of the measure set out in paragraph 5 and any extension thereof. Any tariff increases shall be promptly refunded if the investigation described in paragraph 2 does not result in a finding that the conditions of paragraph I are met. Article 7.5: Dispute Settlement Neither Party shall have recourse to Chapter 15 (Dispute Settlement) of this Agreement for any matter arising under this Chapter. 7-4
Chapter 8. TRADE IN SERVICES
Article 8.1: Definitions
For the purposes of this Chapter: (a) A service supplied in the exercise of governmental authority means any service which is supplied neither on a commercial basis, nor in competition with one or more service suppliers; (b) Aircraft repair and maintenance services mean such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service and do not include so-called line maintenance; (c) Commercial presence means any type of business or professional establishment, including through: (i) the constitution, acquisition, or maintenance of a juridical person; or (ii) the creation or maintenance of a branch or representative office, within the territory of a Party for the purpose of supplying a service; (d) Computer reservation system services mean services provided by computerized systems that contain information about air carriers' schedules, availability, fares, and fare rules, through which reservations can be made or tickets may be issued; (e) Juridical person means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust/fund, partnership, joint venture, sole proprietorship, or association; (t) Juridical person of the oi:her Party means a juridical person which is either: (i) constituted or otherwise organised under the law of that other Party, and is engaged in substantive business operations in the territory of: (A) that Party; or (8) any Member of the WTO and is owned or controlled by natural persons of that other Party or by juridical persons that meet all the conditions of subparagraph (i)(A); or (ii) in the case of the supply of a service through commercial presence, owned or controlled by: (A) natural persons of that Party; or 8-1
(B) juridical persons of that other Party identified under subparagraph (i). (g) A juridical person is: (i) "owned" by persons ofa Party if more than 50 percent of the equity interest in it is beneficially owned by persons of that Party; (ii) "controlled" by persons of a Party if such persons have the power to name a majority of its directors or otherwise to legally direct its actions; or (iii) "affiliated" with another person when it controls, or is controlled by, that other person, or when it and the other person are both controlled by the same person; ? (h) Measure means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form; (i) Measures by Parties mean measures by: (i) central, regional, or local governments and authorities; and (ii) non-governmental bodies in the exercise of powers delegated by central, regional, or local governments or authorities; In fulfilling its obligations and commitments under this Chapter, each Party shall take such reasonable measures as may be available to it to ensure their observance by regional and local governments and authorities and non-governmental bodies within its territory; U) Measures by Parties ~ffecting trade in services include measures in respect of: (i) the purchase, payment, or use of a service; (ii) the access to and use of, in connection with the supply of a service, services which are required by a Party to be offered to the public generally; and (iii) the presence, including commercial presence, of persons of a Party for the supply of a service in the territory of the other Party; (k) Monopoly supplier of a service means any person, public or private, which in the relevant market of the territory of a Party is authorised or established formally or in effect by that Party as the sole supplier of that service; 8-2
(I) Natural person of the other Party means a national or a permanent resident9 of Serbia or the U AE; (m) Person means either a natural person or a juridical person; (n) Sector of a service means: (i) with reference to a specific commitment, one or more, or all, subsectors of that service, as specified in a Party's Schedule; or (ii) otherwise, the whole of that service sector, including all of its subsectors; (o) Selling and marketing of air transport services mean opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising, and distribution. These activities do not include the pricing of air transport services nor the applicable conditions. (p) Service consumer means any person that receives or uses a service; ( q) Service of the other Party means a service which is supplied: (i) from or in the territory of that other Party, or in the case of maritime transport, by a vessel registered under the laws of that other Party, or by a person of that other Party which supplies the service through the operation of a vessel and/or its use in whole or in part; or (ii) in the case of the supply of a service through commercial presence or through the presence of natural persons, by a service supplier of that other Party; (r) Service supplier means any person that seeks to supply or supplies a service; 10 (s) Services include any service in any sector except services supplied in the exercise of governmental authority; (t) Supply of a service includes the production, distribution, marketing, sale, and delivery of a service; ( u) Trade in services is defined as the supply of a service: 9 With respect to the UAE, the term "permanent resident" shall mean any natural person who is in possession ofa valid residency permit under the laws and regulations of the UAE. 10 Where the service is not supplied directly by a juridical person but through other forms of commercial presence such as a branch or a representative office, the service supplier (i.e. the juridical person) shall, nonetheless, through such presence be accorded the treatment provided for service suppliers under the Chapter. Such treatment shall be extended to the presence through which the service is supplied and need not be extended to any other parts of thF""' om,;d, tire tc<rito,y where th,""';:.: '"ppld
(i) from the territory of a Party into the territory of the other Party; (ii) in the territory of a Party to the service consumer of the other Party; (iii) by a service supplier of a Party, through commercial presence in the territory of the other Party; (iv) by a service supplier of a Party, through presence of natural persons of a Party in the territory of the other Party; and (v) Traffic rights mean the right for scheduled and non-scheduled services to operate and/or to carry passengers, cargo and mail for remuneration or hire from, to, within, or over the territory of a Party, including points to be served, routes to be operated, types of traffic to be carried, capacity to be provided, tariffs to be charged and their conditions, and criteria for designation of airlines, including such criteria as number, ownership, and control. Article 8.2: Scope 1. This Chapter applies to measures by Parties affecting trade in services. 2. This Chapter shall not apply to: (a) laws, regulations, or requirements governing the procurement by government agencies of services purchased for governmental purposes and not with a view to commercial resale or with a view to use in the supply of services for commercial sale; (b) services supplied in the exercise of governmental authority; (c) subsidies or grants provided by a Party, including government-supported loans, guarantees, and insurance; and (d) measures affecting natural persons of a Party seeking access to the employment market of the other Party, or measures regarding citizenship, residence, or employment on a permanent basis. Nothing in this Chapter shall prevent a Party from applying measures to regulate the entry of natural persons into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across, its borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific commitment. 11 11 The sole fact of requiring a visa for natural persons of certain country and not for those of others shall not be regarded as nullifying or impairing benefits under a specific commitment. 8-4
( e) measures affecting air tr~ffic rights or measures affecting services directly related to the exercise of air traffic rights, other than measures affecting: (i) aircraft repair and maintenance services; (ii) the selling and marketing of air transport services; and (iii) computer reservation system services; 3. The rights and obligations of the Parties in respect of Financial Services shall be governed by the Annex on Financial Services of the GA TS, which is hereby incorporated into and made part of this Agreement. Article 8.3: Schedules of Specific Commitments I. Each Party shall set out in its Schedule of Specific Commitments, the specific commitments it undertakes in accordance with Article 8.5, Article 8.6, and Article 8.7. 2. With respect to sectors where such commitments are undertaken, each Schedule of Specific Commitments shall specify: (a) terms, limitations, and conditions on market access; (b) conditions and qualifications on national treatment; (c) undertakings relating to additional commitments; (d) where appropriate, the time-frame for implementation of such commitments; and (e) the date of entry into force of such commitments. 3. Measures inconsistent with both Articles 8.5 and 8.6 shall be inscribed in the column relating to Article 8.5. ln this case, the inscription will be considered to provide a condition or qualification to Article 8.6 as well. 4. The Parties' Schedules of Specific Commitments are set forth in Annexes III (Schedule of Specific Commitments of Serbia on trade in services) and IV (Schedule of Specific Commitments of the UAE on trade in services). Article 8.4: Most-Favoured Nation Treatment I. Except as provided for in its List of MFN Exemptions contained in Annexes V and VI, a Party shall accord immediately and unconditionally, in respect of all measures affecting the supply of services, to services and service suppliers of the other Party treatment no less favourable than that it accords to like services and service suppliers of any non-party. 2. The obligations of paragraph I shall not apply to: 8-5
(a) Treatment granted under other existing or future agreements concluded by one of the Parties and notified under Article V or Article V bis of the GA TS as well as treatment granted in accordance with Article VII of the GA TS or prudential measures in accordance with the GA TS Annex on Financial Services; (b) Treatment granted by the UAE to services and service suppliers of the Gulf Cooperation Council (GCC) Member States under the GCC Economic Agreement and treatment granted by the UAE under the Greater Arab Free Trade Area (GAFTA); (c) Treatment granted by Serbia to services and services suppliers of the Parties to the Agreement on Amendment of and Accession to the Central European Free Trade Agreement; or (d) Treatment granted by Serbia to services and services suppliers of the European Union and United Kingdom of Great Britain and Northern Ireland. 3. The rights and obligations of the Parties in respect of advantages accorded to adjacent countries shall be governed by Article 11:3 of the GA TS, which is hereby incorporated into and made part of this Agreement. 4. If, after the entry into force of this Agreement, a Party enters into any agreement on trade in services with a non-party, it shall give positive consideration to negotiate, upon request by the other Party, the incorporation into this Agreement of a treatment no less favourable than that provided under the agreement with the non-party. Any such incorporation should maintain to overall balar.ce of commitments undertaken by each Party under this Agreement. Article 8.5: Market Access I. With respect to market access through the modes of supply identified in the definition of "trade in services" contained in Article 8.2, each Party shall accord services and service suppliers of the other Party treatment no less favourable than that provided for under the terms, limitations and conditions agreed and specified in its Schedule of Specific Commitments.12 2. In sectors where market access commitments are undertaken, the measures which a Party shal I not maintain or adopt, either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in its Schedule of Specific Commitments, are defined as: 12 If a Party undertakes a market-access commitment in relation to the supply of a service through the mode of supply referred to in referred to in the definition of'�trade in services" paragraph (i) contained in Article VIIl.2 and if the cross-border movement of capital is an essential part of the service itself, that Party is thereby committed to allow such movement of capital. If a Party undertakes a market-access commitment in relation to the supply of a service through the mode of supply referred to in the definition of �'trade in services�" paragraph (iii) contained in Article 8.2, it is thereby committed to allow related transfers of capital into its territory 8-6
(a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers, or the requirements of an economic needs test; (b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement ofan economic needs test; (c) limitations on the total number of service operations or on the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; 13 (d) limitations on the total numb.!r of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; (e) measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service; and (t) limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment. Article 8.6: National Treatment I. With respect to the services sectors inscribed in its Schedule of Specific Commitments, and subject to any conditions and qualifications set out therein, each Party shall accord to services and service suppliers of the other Party, in respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and service suppliers. 14 2. A Party may meet the requirement in paragraph I by according to services and service suppliers of the other Party either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers. 3. Formally identical or formally different treatment by a Party shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of that Party compared to the like service or service suppliers of the other Party. 13 Subparagraph 2( c) does not cover measures of a Party which limit inputs for the supply of services. 14 Specific commitments assumed under this Article shall not be construed to require either Party to compensate for any inherent competitive disadvantages which result from the foreign character of the relevant services m~Nicest-8-7
Article 8.7: Additional Commitments The Parties may negotiate commitments with respect to measures affecting trade in services not subject to scheduling under Articles 8.5 and 8.6, including those regarding qualification, standards, or licensing matters. Such commitments shall be inscribed in a Party's Schedule of Specific Commitments. Article 8.8: Modification of Schedules Upon written request by a Party, the Parties shall hold consultations to consider any modification or withdrawal of a specific commitment in the requesting Party's Schedule of Specific Commitments. The consultations shall be held within three months after the requesting Party made its request. In the consultations, the Parties shall aim to ensure that a general level of mutually advantageous commitments no less favourable to trade than that provided for in the Schedule of Specific Commitments prior to such consultations is maintained. Modifications of Schedules are subject to any procedures adopted by the Joint Committee established in Chapter 17 (Administration of the Agreement). Article 8.9: Domestic Regulation I. In sectors where specific commitments are undertaken, each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective, and impartial manner. 2. (a) Each Party shall maintain or institute as soon as practicable judicial, arbitral, or administrative tribunals or procedures which provide, on request of an affected service supplier, for the �prompt review of, and where justified, appropriate remedies for, administrative decisions affecting trade in services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, the Party shall ensure that the procedures in fact provide for an objective and impartial review. (b) The provisions of subparagraph (a) shall not be construed to require a Party to institute such tribunals or procedures where this would be inconsistent with its constitutional structure or the nature of its legal system. 3. Where authorisation is required for the supply ofa service on which a specific commitment under this Chapter has been made, the competent authorities of each Party shall: (a) within a reasonable period of time after the submission of an application considered complete under domestic laws and regulations, inform the applicant of the decision concerning the application; (b) in the case ofan incomplete application, on request of the applicant, identify all the additional information that is required to complete the application and provide the opportunity to remedy deficiencies within a reasonable timeframe; #io.r' 8-8
(c) on request of the applicant, provide without undue delay information concerning the status of the application; and (d) if an application is terminated or denied, to the extent possible, inform the applicant in writing and without delay the reasons for such action. The applicant will have the possibility of resubmitting, at its discretion, a new application. 4. With a view to ensuring that measures relating to qualification requirements and procedures, technical standards, and licensing requirements do not constitute unnecessary barriers to trade in services, in sectors where specific commitments are undertaken, the Parties shall aim to ensure that such requirements are: (a) based on objective and transparent criteria, such as competence and the ability to supply the service; (b) not more burdensome than necessary to ensure the quality of the service; and (c) in the case oflicensing procedures, not in themselves a restriction on the supply of the service. 5. In determining whether a Party is in conformity with the obligation under paragraph 4, account shall be taken of international standards of relevant international organisations applied by that Party. 15 6. In sectors where specific commitments regarding professional services are undertaken, each Party shall provide for adequate procedures to verify the competence of professionals of the other Party. 7. The Parties shall jointly review the results of the negotiations on disciplines on domestic regulation, pursuant to Article VI:4 of the GA TS, and will consider incorporating them into this Chapter. Article 8.10: Recognition I. For the purposes of the fulfilment, in whole or in part, of its standards or criteria for the authorisation, licensing or certification of service suppliers, and subject to paragraph 3, a Party may recognise, or encourage its relevant competent bodies to recognise, the education or experience obtained, requirements met, or licences or certifications granted in the other Party. Such recognition, which may be achieved through harmonisation or otherwise, may be based upon an agreement or arrangement between the Parties or their relevant competent bodies, or may be accorded autonomously. 2. Where a Party recognises, by agreement or arrangement, the education or experience obtained, requirements met, or licenses or certifications granted in the territory of a non-15 The term �'relevant international organisations" refers to international bodies whose membership is open to the relevant bodies of the Parties to this Agreement. 8-9
party, that Party shall afford the other Party adequate opportunity to negotiate its accession to such an agreement or arrangement, whether existing or future, or to negotiate a comparable agreement or arrangement with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that the education, experience, licences or certifications obtained or requirements met in that other Party's territory should also be recognised. 3. A Party shall not accord recognition in a manner which would constitute a means of discrimination between the other Party and non-parties in the application of its standards or criteria for the authorisation, licensing or certification of service suppliers, or a disguised restriction on trade in services. 4. The Parties agree to encourage, where possible, the relevant bodies in their respective territories responsible for issuance and recognition of professional and vocational qualifications to: (a) strengthen cooperation and to explore possibilities for mutual recognition of respective professional and vocational qualifications; and (b) pursue mutually acceptable standards and criteria for licensing and certification with respect to service sectors of mutual importance to the Parties. Article 8.11: Payments and Transfers I. Except under the circumstances envisaged in Article 8.14, a Party shall not apply restrictions on international transfers and payments for current transactions relating to its specific commitments. 2. Nothing in this Chapter shall affect th~ rights and obligations of the Parties as members of the International Monetary Fund under the Articles of Agreement of the Fund, including the use of exchange actions which are in conformity with the Articles of Agreement, provided that a Party shall not impose restrictions on any capital transactions inconsistently with its specific commitments regarding such transactions, except under Article 8.14 or at the request of the International Monetary Fund. Article 8.12: Monopolies and Exclusive Service Suppliers The rights and obligations of the Parties in respect of monopolies and exclusive service suppliers shall be governed by Article VIII:l, Article Vlll:2, and Article VIII:5 of the GATS, which are hereby incorporated into and made part of this Agreement. Article 8.13: Business Practices The rights and obligations of the Parties in respect of business practices shall be governed by Article IX of the GATS, which is hereby incorporated into and made part of this Agreement. 8-10
Article 8.14: Restrictions to Safeguard the Balance-of-Payments I. The Parties shall endeavour to avoid the imposition ofrestrictions to safeguard the balance of payments. 2. Where a Party to this Agreement is in serious balance of payments and external financial difficulties, or under threat thereof, it may adopt or maintain restrictive measures with regard to trade in services, including on payments and transfers. 3. The rights and obligations of the Panies in respect of such restrictions shall be governed by Articles XII: I through 3 of the GA TS, which are hereby incorporated into and made part of this Agreement. A Party adopting or maintaining such restrictions, or changing existing restrictions, shall promptly notify the Joint Committee thereof. Article 8.15: Denial of Benefits I. A Party may deny the benefits of this Agreement to a service supplier of another Party if it establishes that the service is being supplied in that Party by a juridical person which is owned or controlled by persons ofa non-Party and thatjuridical person has no substantive business operations in the territory of either Party. 2. A Party may deny the benefits of this Agreement to a service supplier that is a juridical person, if persons of a non-Party�own or control that juridical person and the denying Party: (a) does not maintain diplomatic relations with the non-Party; or (b) adopts or maintains measures with respect to the non-Party or a person of the non�Party that prohibit transactions with the juridical person or that would be violated or circumvented if the benefits of this Agreement were accorded to the juridical person. 3. In the case of the supply of a maritime transport service, if it establishes that the service is supplied: (a) by a vessel registered under the laws of a non-Party; and (b) by a person which operates and/or uses the vessel in whole or in part but which is ofa non-Party. Article 8.16: Review With the objective of further liberalising trade in services between them, the Parties agree to jointly review their Schedules of Specific Commitments and their Lists of MFN Exemptions, taking into account any services liberalisation developments as a result of on-going work under the auspices of the WTO. 0~ 8-11
Article 8.17: Annexes 1. The following Annexes form an integral part of this Chapter: (a) Annex III (Schedules of Specific Commitments of Serbia on trade in services); (b) Annex IV (Schedules of Specific Commitments of the UAE on trade in services); (c) Annex V (List ofMFN Exemptions of Serbia); and (d) Annex VI (List ofMFN Exemptions of the UAE). 2. The Serbia and UAE reserve the right to propose additional annexes.
Chapter 9. DIGITAL TRADE
Article 9.1: Definitions For purposes of this Chapter:
Authentication means the process or act of verifying the identity of a Party to an electronic communication or transaction and ensuring the integrity of an electronic communication; Digital or electronic signature means data in digital or electronic form that is in, affixed to, or logically or cryptographically associated with, a digital or electronic document, and that may be used to identify or verify the signatory in relation to the digital or electronic document and indicate the signatory's approval of the information contained in the digital or electronic document; Digital product means a computer programme, text, video, image, sound recording or other product that is digitally encoded, produced for commercial sale or distribution, and that can be transmitted electronically; 1617 Electronic transmission or transmitted electronically means a transmission made using any electromagnetic means, including by photonic means; Measure means any measure by a Party, whether in the form ofa law, regulation, rule, procedure, decision, administrative action, or any other form; . Open data means non-proprietary information, including data, made freely available to the public by the central level of government; Personal data means any information, including data, about an identified or identifiable natural person; Trade administration documents mean forms issued or controlled by a Party that must be completed by or for an importer or exporter in connection with the import or export of goods; and Unsolicited commercial electronic message means an electronic message which is sent for commercial or marketing purposes to an electronic address, without the consent of the recipient or despite the explicit rejection of the recipient, through an Internet access service supplier or, to the extent provided for under the laws and regulations of each Party, other telecommunications service. 16 For greater certainty, digital product does not include a digitised representation of a financial instrument, including money. 17 The definition of digital product should not be understood to reflect a Party's view on whether trade in digital products through electronic transmission should be categorised as trade in services or trade in goods. 9-1
Article 9.2: Objectives 1. The Parties recognise the economic growth and opportunity that digital trade provides, the importance of avoiding barriers to its use and development, the importance of frameworks that promote consumer confidence in digital trade, and the applicability of the WTO Agreement to measures affecting digital trade. 2. The Parties seek to foster an environment conducive to the further advancement of digital trade, including electronic commerce and the digital transformation of the global economy, by strengthening their bilateral relations on these matters. Article 9.3: General Provisions I . This Chapter shall apply to measures adopted or maintained by a Party that affect trade by electronic means. 2. This Chapter shall not apply to: (a) government procurement; (b) information held or processed by or on behalf of a Party, or measures related to such information, including measures related to its collection. 3. For greater certainty, the Parties affirm that measures affecting the supply of a service delivered or performed electronically are subject to the relevant provisions of Chapter 8 (Trade in Services) and its Annexes and Chapter 12 (lnvestment), including any exceptions or limitations set out in this Agreement that are applicable to such provisions. Article 9.4: Customs Duties I. Neither Party shall impose customs duties on digital or electronic transmissions, including content transmitted electronically, between a person of a Party and a person of the other Party. 2. For greater certainty, paragraph I shall not preclude a Party from imposing internal taxes, fees or other charges on content transmitted digitally or electronically, provided that such taxes, fees or charges are imposed in a manner consistent with this Agreement. Article 9.5: Non-Discriminatory Treatment of Digital Products I. A Party shall not accord less favourable treatment to some digital products than it accords to other like digital products: 9-2
(a) on the basis that: (i) the digital products rece1vmg less favorable treatment are created, produced, published, stored, transmitted, contracted for, commissioned, or first made available on commercial terms, in the territory of the other Party; or (ii) the author, performer, producer, developer, or distributor of such digital products is a person of the other Party; or (b) so as otherwise to afford protection to the other like digital products that are created, produced, published, stored, transmitted, contracted for, commissioned, or first made available on commercial terms, in its territory. 2. A Party shall not accord less favourable treatment to digital products: (a) created, produced, published, stored, transmitted, contracted for, commissioned, or first made available on commercial terms, in the territory of the other Party than it accords to like digital products created, produced, published, contracted for, commissioned, or first made available on commercial terms in the territory of a non-Party; or (b) whose author, performer, producer, developer, or distributor of such digital products is a person of the other Party than it accords to like digital products whose author, performer, producer, developer, or distributor of such digital products is a person of a non-Party. 3. Paragraphs I and 2 of this Article are subject to relevant exceptions, limitations or reservations set out in this Agreement or its Annexes, if any. 4. This Article shall not apply to measures affecting the electronic transmission of a series of text, video, images, sound recordings, and other products scheduled by a content provider for aural and/or visual reception, and for which the content consumer has no choice over the scheduling of the series. Article 9.6: Domestic Electronic Transactions Framework I . Each Party shall endeavor to maintain a legal framework governing electronic transactions consistent with the principles of the UNCITRAL Model Law on Electronic Commerce (1996) or the United Nations Convention on the Use of Electronic Communications in International Contracts, done at New York on 23 November 2005. 2. Each Party shall endeavor to: (a) avoid any unnecessary regulatory burden on electronic transactions; and 9-3
(b) facilitate input by interested persons in the development of its legal framework for electronic transactions, including in relation to trade documentation. Article 9.7: Authentication I. Except in circumstances otherwise provided for under its law, a Party shall not deny the legal validity of a signature solely on the basis that the signature is in digital or electronic form. 2. Neither Party shall adopt or maintain measures regarding authentication that would: ( a) prohibit parties to an electronic transaction from mutually determining the appropriate authentication methods for that transaction; or (b) prevent parties to an electronic transaction from having the opportunity to establish before judicial or administrative authorities that their transaction complies with any legal requirements with respect to authentication. 3. Notwithstanding paragraph 2, a Party may require that, for a particular category of transactions, the method of authentication meets certain performance standards or is certified by an authority accredited in accordance with its law. 4. The Parties shall encourage the use of interoperable means of authentication. Article 9.8: Paperless Trading Each Party shall endeavour to: (a) make trade administration documents available to the public in digital or electronic form; and (b) accept trade administration documents submitted electronically as the legal equivalent of the paper version of those documents. Article 9.9: Online Consumer Protection I. The Parties recognise the importance of adopting and maintaining transparent and effective measures to protect consumers from misleading, deceptive, and fraudulent commercial practices when they engage in purchasing within digital trade. 9-4
2. Each Party shall endeavour to adopt or maintain consumer protection laws to proscribe misleading, deceptive, and fraudulent commercial activities that cause harm or potential harm to consumers engaged in purchasing within digital trade. 18 Article 9.10: Personal Data Protection I. The Parties recognise the economic and social benefits of protecting the personal data of persons who conduct or engage in electronic transactions and the contribution that this makes to enhancing consumer confidence in digital trade. 2. To this end, each Party shall endeavor to adopt or maintain a legal framework that provides for the protection of the personal data of the users of digital trade. 19 In the development of any legal framework for the protection of personal data, each Party should endeavor to take into account principles and guidelines of relevant international organisations. Article 9.11: Principles on Access to and Use of the Internet for Digital Trade To support the development and growth of digital trade, each Party recognizes that consumers in its territory should be able to: (a) access and use services and applications of their choice, unless prohibited by the Party's law; (b) run services and applications of their choice, subject to the Party's law, including the needs of legal and regulatory enforcement activities; and (c) connect their choice of devices to the Internet, provided that such devices do not harm the network and are not otherwise prohibited by the Party's law. Article 9.12: Unsolicited Commercial Electronic Messages 1. Each Party shall endeavour to adopt or maintain measures regarding unsolicited commercial electronic messages sent to an electronic mail address that: (a) require a supplier of unsolicited commercial electronic messages to facilitate the ability ofa recipient to prevent ongoing reception of those messages; 18 For greater certainty, a Party may comply with the obligation in this paragraph by adopting or maintaining measures such as generally-applicable consumer protection laws or regulations or sector-or medium-specific laws or regulations regarding consumer protection. 19 For greater certainty, a Party may comply with the obligation in this paragraph by adopting or maintaining measures such as a comprehensive privacy, personal information or personal data protection law, sector-specific laws covering privacy, or laws that provide for the enforcement of voluntary undertakings by enterprises relating to privacy. 9-5
(b) require the consent, as specified in the laws and regulations of each Party, of recipients to receive commercial electronic messages; or (c) otherwise provide for the minimisation of unsolicited commercial electronic messages. 2. Each Party shall endeavour to provide recourse against a supplier of unsolicited commercial electronic messages that does not comply with a measure adopted or maintained in accordance with paragraph 1. 3. The Parties shall endeavour to cooperate in appropriate cases of mutual concern regarding the regulation of unsolicited commercial electronic messages. Article 9.13: Cross-Border Flow of Information Recognizing the importance of the free flow of information in facilitating trade, and acknowledging the importance of protecting personal data, the Parties shall endeavor to refrain from imposing or maintaining unnecessary barriers to electronic information flows across borders. Article 9.14: Open Data I. The Parties recognise that facilitating publi-:: access to and use of open data contributes to stimulating economic and social benefit, competitiveness, productivity improvements and innovation. To the extent that a Party chooses to make available open data, it shall endeavour to ensure: (a) that the information is appropriately anonymised, contains descriptive metadata and is in a machine readable-and open format that allows it to be searched, retrieved, used, reused and redistributed freely by the public; and (b) to the extent practicable, that the information is made available in a spatially enabled format with reliable, easy to use and freely available Application Programming Interfaces ("APls") and is regularly updated. 2. The Parties shall endeavour to cooperate to identify ways in which each Party can expand access to and use of open data, with a view to enhancing and generating business and research opportunities. Article 9.15: Digital Government I. The Parties recognise that technology can enable more efficient and agile government operations, improve the quality and reliability of government services, and enable governments to better serve the needs of their citizens and other stakeholders. 9-6
2. To this end, the Parties shall endeavour to develop and implement strategies to digitally transform their respective government operations and services, which may include: (a) adopting open and inclusive government processes focusing on accessibility, transparency, and accountability in a manner that overcomes digital divides; (b) promoting cross-sectoral and cross-governmental coordination and collaboration on digital agenda issues; (c) shaping government processes, services, and policies with digital inclusivity in mind; (d) providing a unified digital platform and common digital enablers for government service delivery; (e) leveraging emerging technologies to build capabilities in anticipation of disasters and crises and facilitating proactive responses; (f) generating public value from government data by applying it in the planning, delivering and monitoring of public policies, and adopting rules and ethical principles for the trustworthy and safe use of data; (g) making government data and policy-making processes (including algorithms) available for the public to engage with; and (h) promoting initiatives to raise the level of digital capabilities and skills of both the populace and the government workforce. 3. Recognising that the Parties can benefit by sharing their experiences with digital government initiatives, the Parties shall endeavour to cooperate on activities relating to the digital transformation of government and government services, which may include: (a) exchanging information and experiences on digital government strategies and policies; (b) sharing best practices on digital government and the digital delivery of government services; and (c) providing advice or training, including through exchange of officials, to assist the other Party in building digital government capacity. Article 9.16: Digital and Electronic Invoicing I. The Parties recognise the importance of digital and electronic invoicing to increase the efficiency, accuracy and reliability of commercial transactions. Each Party also recognises the benefits of ensuring that the systems used for digital and electronic invoicing within its territory are interoperable with the systems used in the other Party's territory. 9-7
2. Each Party shall endeavour to ensure that the implementation of measures related to digital and electronic invoicing in its territory supports cross-border interoperability between the Parties' digital and electronic invoicing frameworks. To th is end, each Party shall endeavour to base its measures relating to digital and electronic invoicing on international frameworks. 3. The Parties recognise the economic importance of promoting the global adoption of digital and electronic invoicing systems, including interoperable international frameworks. To this end, the Parties shall endeavour to: (a) promote, encourage, support or facilitate the adoption of digital and electronic invoicing by enterprises; (b) promote the existence of policies, infrastructure and processes that support digital and electronic invoicing; (c) generate awareness of, and build capacity for, digital and electronic invoicing; and ( d) share best practices and promote the adoption of interoperable international digital and electronic invoicing systems. Article 9.17: Digital and Electronic P:iyments I. Recognising the rapid growth of digital and electronic payments, in particular those provided by non-bank, non-financial institutions and financial technology enterprises, the Parties shall endeavour to support the development of efficient, safe and secure cross�border digital and electronic payments by: (a) fostering the adoption and use of internationally accepted standards for digital and electronic payments; (b) promoting interoperability and the interlinking of digital electronic payment infrastructures; and (c) encouraging innovation and competition in digital and electronic payments services. 2. To this end, each Party shall endeavour to: (a) (b) ~ make publicly available its laws and regulations of general applicability relating to digital and electronic payments, including in relation to regulatory approval, licensing requirements, procedures and technical standards; finalise decisions on regulatory or licensing approvals relating to digital and electronic payments in a timely manner; 9-8
(c) not arbitrarily or unjustifiably discriminate between financial institutions and non�financial institutions in relation to access to services and infrastructure necessary for the operation of digital and electronic payment systems; (d) adopt or utilize international standards for electronic data exchange between financial institutions and services suppliers to enable greater interoperability between digital and electronic payment systems; (e) facilitate the use of open platforms and architectures such as tools and protocols provided for through AP!s and encourage payment service providers to safely and securely make AP!s for their products and services available to third parties, where possible, to facilitate greater interoperability, innovation and competition in electronic payments; and (f) facilitate innovation and competition and the introduction of new financial and electronic payment products and services in a timely manner, such as through adopting regulatory and industry sandboxes. Article 9.18: Digital Identities Recognising that cooperation between the Parties on digital identities for natural persons and enterprises will promote connectivity anci further growth of digital trade, and recognising that each Party may take different legal and technical approaches to digital identities, the Parties shall endeavour to pursue mechanisms to promote compatibility between their respective digital identity regimes. This may include: (a) developing appropriate frameworks and common standards to foster technical interoperability between each Party's implementation of digital identities; (b) developing comparable protection of digital identities under each Party's respective legal framework, or� the recognition of their legal effects, whether accorded autonomously or by agreement; (c) supporting the development of international frameworks on digital identity regimes; and (d) exchanging knowledge and expertise on best practices relating to digital identity policies and regulations, technical implementation and security standards, and the promotion of the use of digital identities. Article 9.19: Cooperation l. Recognising the importance of digital trade to their collective economies, the Parties shall endeavour to maintain a dialogue on regulatory matters relating to digital trade with a view to sharing information and experiences, as appropriate, including on related laws, 9-9
regulations, and their implementation, and best practices with respect to digital trade, including in relation to: (a) online consumer protection; (b) personal data protection; (c) anti-money laundering and sanctions compliance for digital trade; (d) unsolicited commercial electronic messages; ( e) authentication; (f) intellectual property concerns with respect to digital trade; (g) challenges for small and medium-sized enterprises in digital trade; and (h) digital government. 2. The Parties have a shared vision to promote secure digital trade and recognise that threats to cybersecurity undermine confidence in digital trade. Accordingly, the Parties recognise the importance of: (a) building the capabilities of their government agencies responsible for computer security incident response; (b) using existing collaboration mechanisms to cooperate to identify and m1t1gate malicious intrusions or dissemination of malicious code that affect the electronic networks of the Parties; and ? (c) promoting the development ofa strong public and private workforce in the area of cybersecurity, including possible initiatives relating to mutual recognition of qualifications. 9-10
Chapter 10. GOVERNMENT PROCUREMENT
Article 10.1: Definitions For the purposes of this Chapter: Competent authorities mean for each Party as follows: For Serbia Institution in charge of public procurement; For the UAE Government Procurement Platform Department, Ministry of Finance. Procurement system means the purchasing electronic system provided by the competent authorities for the government procurement entities to conduct end-to-end procurement processes which ensures integrity and transparency. Article 10.2: Objectives The Parties recognize the importance of cooperation in the field of government procurement, for the purposes of greater transparency in the field of government procurement. Article 10.3: Scope This Chapter shall apply to the laws, regulations and practices of a Party regarding government procurement implemented by its government procurement entities, as defined or notified by that Party for the purposes of this Chapter. Article 10.4: Areas of Cooperation The Parties shall endeavour to cooperate on matters relating to government procurement, with a view to achieving a better understanding of each Party's respective government procurement systems. Such cooperation may include: (a) (b) (c) exchanging experiences and information, such as laws and regulations and any modifications thereof, and best practices and statistics; sharing experiences and means on the use of electronic means in government procurement, and other issues related to government procurement; ensuring the confidentiality of information in e-procurement. 10-1
Article 10.5: Information on the Procurement System l. The Parties shall publish their respective laws and regulations and infonnation on government procurement in the sources listed in Appendix I 0A. In order to provide greater transparency, the Parties shall, as per their respective laws and regulations, ensure public access to these sources of information. 2. The Parties shall endeavor to publish in electronic form the available information about government procurement (notice on procurement bid, procurement documentation, changes to such notices and documentation, clarifications of the procurement documentation, protocols drawn up in the procurement process, infonnation on procurement results). 3. The Parties shall publish any changes to the relevant laws and regulations and/or government procurement information in the sources listed in Appendix I 0A or notify each other of such changes by other means as soon as possible. 4. In respect of procurement conducted by entities within the scope of this Chapter, the Parties shall endeavor to use electronic means to the widest extent practicable. Article 10.6: Consultations I. Upon request of a Party, the other Party shall provide within a reasonable period of time clarification on the issues related to government procurement. 2. For all matters concerning the application of this Chapter in the relations between the Parties, including in the event of any disagreement related to its interpretation and application, consultations shall be held upon request of either Party. 3. A request for such consultations shall be submitted to the other Party's contact point designated under Article 10.7. Unless the Parties agree otherwise, they shall hold consultations within 60 days from the date ofreceipt of the request. 4. Consultations may be conducted by any means agreed by the Parties. Article 10.7: Contact Points I. Each Party shall designate a contact point to monitor the implementation of this Chapter. The contact points shall work collaboratively to facilitate the implementation of this Chapter. 2. The Parties shall provide each other with the names and contact details of their contact points. 3. The Parties shall notify each other of any change to their contact points. 10-2
Article 10.8: Review The Parties may review this Chapter with a view to enhancing and deepening the level of transparency and cooperation. Article 10.9: Dispute Settlement Neither Party shall have recourse to Chapter 15 (Dispute Settlement) of this Agreement for any matter arising under this Chapter. 10-3
Chapter 11. INTELLECTUAL PROPERTY
SECTION A: GENERAL PROVISIONS
Article 11.1: Definitions For the purposes of this Chapter: Intellectual property embodies: (a) copyright, including copyright in computer programs and in databases, and related rights; (b) patents and utility models; ( c) trademarks; (d) industrial designs; (e) layout-designs (topographies) of integrated circuits; (f) geographical indications; (g) plant varieties; and (h) protection of undisclosed information. National means, in respect of the relevant right, a person of a Party that would meet the criteria for eligibility for protection provided for in the agreements listed in Article 11.5 or the TRIPS Agreement. WIPO means World Intellectual Property Organization. Article 11.2: Objectives The protection and enforcement of intellectual property rights should contribute to the promotion of trade, investment, technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance ofrights and obligations. Article 11.3: Principles Nothing in this Chapter shall prevent a Party from adopting appropriate measures to prevent the abuse of intellectual property rights by right holders or the resort to practices that unreasonably 11-1
restrain trade or adversely affect the international transfer of technology provided that such measures are consistent with its national legislation and this Agreement. Article I 1.4: Nature and Scope of Obligations Each Party shall give effect to the provisions of this Chapter. A Party may, but shall not be obliged to, provide more extensive protection for, or enforcement of, intellectual property rights under its law than is required by this Chapter, provided that such protection or enforcement does not contravene the provisions of this Chapter. Each Party shall be free to determine the appropriate method of implementing the provisions of this Chapter within its own legal system and practice. Article I 1.5: International Agreements I. The Parties, which are party t<:> the following multilateral agreements, reaffirm their obligations set out therein: (a) Patent Cooperation Treaty of 19 June 1970, as revised by the Washington Act of 2001; (b) Paris Convention of 20 March 1883 for the Protection of Industrial Property, as revised by the Stockholm Act of 1967; (c) Berne Convention of 9 September 1886 for the Protection of Literary and Artistic Works, as revised by the Paris Act of 1971 ("Berne Convention"); (d) Madrid Protocol of 27 June 1989 relating to the Madrid Agreement concerning the International Registration of Marks; (e) WIPO Performances and Phonogram Treaty o/20 December 1996 ("WPPT"); (t) International Rome Convention of 26 October 1961 for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations; (g) WIPO Copyright Treaty of 20 December 1996 ("WCT"); (h) Budapest Treaty of 28 April I 977 on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure, (i) Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled; and (i) International Convention for the Protection of New Varieties of Plants (UPOV) 1991. 2. Each Party shall endeavor to ratify or accede to the TRIPS Agreement, if it is not already a party to that agreement. 11-2
Article 11.6: Intellectual Property and Public Health I. A Party may, in formulating or amending its laws and regulations, adopt measures necessary to protect public health and nutrition, and to promote the public interest in sectors of vital importance to their socio-economic and technological development, provided that such measures are consistent with the provisions of its national legislation and of this Chapter. 2. The Parties recognize the principles established in the Declaration on the TRIPS Agreement and Public Health adopted on 14 November 200 I (hereinafter referred to as the "Doha Declaration") by the Ministerial Conference of the WTO and confirm that the provisions of this Chapter are without prejudice to the Doha Declaration. Article 11.7: National Treatment I. In respect of all categories of intellectual property covered in this Chapter, each Party shall accord to nationals of the other Party treatment no less favourable than it accords to its own nationals with regard to the protection of intellectual property rights in accordance with Article 3.1 of the TRIPS Agreement. 2. A Party may derogate from paragraph 1 in relation to its judicial and administrative procedures, including requiring a national of the other Party to designate an address for service of process in its territory, or to appoint an agent in its territory, provided that such derogation is: (a) necessary to secure compliance with laws or regulations that are not inconsistent with this Chapter; and (b) not applied in a manner that would constitute a disguised restriction on trade. 3. Paragraph 1 does not apply to procedures provided in multilateral agreements concluded under the auspices of WIPO relating to the acquisition or maintenance of intellectual property rights. Article I 1.8: Transparency I. Each Party shall endeavor, St!bject to its legal system and practice, to make information concerning application and registration of trademarks, geographical indications, industrial designs, patents and plant variety rights accessible for the general public. 2. The Parties also acknowledge the importance of informational materials, such as publicly accessible databases ofregistered intellectual property rights that assist in the identification of subject matter that has fallen into the public domain. 3. Each Party shall endeavor to make available such information in the English language. 11-3
Article 11.9: Application of Chapter to Existing Subject Matter and Prior Acts I. Unless otherwise provided in this Chapter, this Chapter gives rise to obligations in respect of all subject matter existing at the date of entry into force of this Agreement for each Party and that is protected on that date in the territory of the Party where protection is claimed, or that meets or comes subsequently to meet the criteria for protection under this Chapter without unreasonably impairing the fair interest of the third parties. 2. Neither Party shall be required to restore protection to subject matter that on the date of entry into force of this Agreement has fallen into the public domain in its territory. Article 11.10: Exhaustion of Intellectual Property Rights Without prejudice to any provisions addressing the exhaustion of intellectual property rights in international agreements to which a Party is a party, nothing in this Agreement prevents a Party from determining whether or under what conditions the exhaustion of intellectual property rights applies under its legal system.
SECTION B: COOPERATION
Article 11.11: Cooperation Activiti~s and Initiatives The Parties shall endeavour to cooperate on the subject matter covered by this Chapter, such as through appropriate coordination, training and exchange of information between the respective intellectual property offices of the Parties, or other institutions, as determined by each Party. Cooperation activities and initiatives undertaken under this Chapter shall be subject to the availability of resources, and on request, and on terms and conditions mutually agreed upon between the Parties. Cooperation may cover areas such as: (a) developments in domestic and international intellectual property policy; (b) patent examination quality and efficiency; (c) intellectual property administration and registration systems; (d) education and awareness relating to intellectual property; (e) intellectual property issues relevant to: (i) (ii) (iii) (iv) small and medium-sized enterprises; science, technology, and innovation activities; the generation, transfer, and dissemination of technology; and empowering women and youth; 11-4
(f) policies involving the use of intellectual property for research, innovation, and economic growth; (g) implementation of multilateral intellectual property agreements, such as those concluded or administered under the auspices of WIPO; (h) capacity-building; (i) enforcement of intellectual property rights; and U) other activities and initiatives as may be mutually determined between the Parties.
SECTION C: TRADEMARKS
Article 11.12: Types of Signs Registrable as Trademarks Neither Party shall require, as a condition of registration, that a sign be visually perceptible, nor shall a Party deny registration of a trademark only on the ground that the sign of which it is composed is a sound. Additionally, each Party shall make best efforts to register scent marks. A Party may require a concise and accurate description, or graphical representation, or both, as applicable, of the trademark. Article 11.13: Collective and Certification Marks Each Party shall provide that trademarks include collective marks and certification marks. A Party is not obligated to treat certification marks as a separate category in its law, provided that those marks are protected. Article 11.14: Use of Identical or Similar Signs . Each Party shall provide that the owner of a registered trademark has the exclusive right to prevent third parties that do not have the owner's consent from using in the course of trade identical or similar signs, including subsequent geographical indications,20?21 for goods or services that are related to those goods or services in respect of which the owner's trademark is registered, where such use would result in a likelihood of confusion. In the case of the use of an identical sign for identical goods or services, a likelihood of confusion shall be presumed. 2� For greater certainty, the exclusive right in this Article applies to cases of unauthorised use of geographical indications with goods for which the trademark is registered, in cases in which the use of that geographical indication in the course of trade would result in a likelihood of confusion as to the source of the goods. 21 For greater certainty, the Parties understand that this Article should not be interpreted to affect their rights and obligations under Articles 22 and 23 of the TRlPS Agreement. ~ 11-5
Article 11.15: Exceptions A Party may provide limited exceptions to the rights conferred by a trademark, such as fair use of descriptive terms, provided that those exceptions take account of the legitimate interest of the owner of the trademark and of third parties. Article 11.16: Well-Known Trademarks I. Neither Party shall require as a condition for determining that a trademark is well-known that the trademark has been registered in the Party or in another jurisdiction, included on a list of well-known trademarks, or given prior recognition as a well-known trademark. 2. Article 6bis of the Paris Convention shall apply, mutatis mutandis, to goods or services that are not identical or similar to those identified by a well-known trademark,22 whether registered or not, provided that use of that trademark in relation to those goods or services would indicate a connection between those goods or services and the owner of the trademark, and provided that the interests of the owner of the trademark are likely to be damaged by such use. 3. Each Party recognizes the importance of the Joint Recommendation Concerning Provisions on the Protection of Well-Known Marks as adopted by the Assembly of the Paris Union for the Protection of Industrial Property and the General Assembly of WIPO at the Thirty�Fourth Series of Meetings of the Assemblies of the Member States of WIPO held 20 to 29 September 1999. 4. Each Party shall provide for appropriate measures to refuse the application or cancel the registration and prohibit the use of a trademark that is identical or similar to a well-known trademark23, for identical or similar goods or services, if the use of that trademark is likely to cause confusion with the prior well-known trademark. A Party may also provide such measures including in cases in which the subsequent trademark is likely to deceive. Article t 1.17: Procedural Aspects of Examination, Opposition and Cancellation Each Party shall provide a system for the examination and registration of trademarks which includes among other things: (a) communicating to the applicant in writing, which may be by electronic means, the reasons for any refusal to register a trademark; 22 In determining whether a trademark is well-known in a Party, that Party need not require that the reputation of the trademark extends beyond the sector of the public that normally deals with the relevant goods or services. 23 The Parties understand that a well-known trademark is one that was already well-known before, as determined by a Party, the application for, registration of or use of the first-mentioned trademark. 11-6
(b) providing the applicant with an opportunity to respond to communications from the competent authorities, to contest any initial refusal, and to make a judicial appeal of any final refusal to register a trademark; (c) providing an opportunity to oppose the registration of a trademark or to seek cancellation of a trademark; and (d) requiring administrative decisions in opposition and cancellation proceedings to be reasoned and in writing, which may be provided by electronic means. Article 11.18: Electronic Trademarks System Each Party shall provide: (a) a system for the electronic application for, and maintenance of, trademarks; and (b) a publicly available electronic infonnation system, including an online database, of trademark applications and ofregistered trademarks. Article 11. 19: Classification of Goods and Services Each Party shall adopt or maintain a trademark classification system that is consistent with the Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks, done at Nice, 15 June 1957, as revised and amended ("Nice Classification"). Each Party shall provide that: (a) registrations and the publications of applications indicate the goods and services by their names, grouped according to the classes established by the Nice Classification24; and (b) goods or services may not be considered as being similar to each other on the ground that, in any registration or publication, they are classified in the same class of the Nice Classification. Conversely, each Party shall provide that goods or services may not be considered as being dissimilar from each other on the ground that, in any registration or publication, they are classified in different classes of the Nice Classification. Article 11.20: Term of Protection for Trademarks Each Party shall provide that initial registration and each renewal of registration of a trademark is for a tenn of no less than IO years. 14 A Party that relies on translations of the Nice Classification shall follow updated versions of the Nice Classification to the extent that official translations have been issued and published. 11-7
Article 11.21: Non-Recordal of a License Neither Party shall require recordal of trademark licenses: (a) to establish the validity of the license; or (b) as a condition for use of a trademark by licensee to be deemed to constitute use by the holder in a proceeding that relates to the acquisition, maintenance or enforcement of trademarks. Article 11.22: Domain Names In connection with each Party's system for the management of its country-code top-level domain ("ccTLD") domain names, the following shall be available: (a) an appropriate procedure for the settlement of disputes, based on, or modelled along the same lines as, the principles established in the Uniform Domain-Name Dispute�Resolution Policy, as approved by the Internet Corporation for Assigned Names and Numbers ("ICANN") or that: (i) is designed to resolve disputes expeditiously and at low cost; (ii) is fair and equitable; (iii) is not overly burdensome; and (iv) does not preclude resort to judicial proceedings; and (b) online public access to a reliable and accurate database of contact information concerning domain name registrants, in accordance with each Party's law and, if applicable, relevant administrator policies regarding the protection of privacy and personal data.
SECTION D: COUNTRY NAMES
Article 11.23: Country Names Each Party shall provide the legal means for interested persons to prevent commercial use of the country name of a Party in relation to goods in a manner that misleads consumers as to the origin of those goods. 11-8
SECTION E: GEOGRAPHICAL INDICATIONS
Article 11.24: Protection25 of Geographical Indications I. Geographical indication means an indication that identifies goods as originating in the territory of a Party, or a region or locality in that territory, where a given quality, reputation or other characteristic of goods is essentially attributable to its geographical origin. 2. The Parties reaffirm that geographical indications may be protected through a trademark or sui generis system or other legal means. Article 11.25: Administrative Procedures for the Protection of Geographical Indications Each Party shall provide administrative procedures for the registration or recognition of geographical indications through a trademark or a sui generis system. Each Party shall, with respect to applications for that registration or requests for the recognition, ensure that its laws and regulations governing the filing of those applications or requests are readily available to the public and clearly set out the procedures for these actions. Article 11.26: Date of Protection of a Geographical Indication If a Party grants protection to :i geographical indication, the protection shall commence no earlier than the filing date26 or the registration date in either of Parties according to the national laws and regulations of each Party.
SECTION F: PATENTS AND INDUSTRIAL DESIGNS
Article 11.27: Grace Period I. Each Party shall disregard information contained in a public disclosure of an invention related to an application to register a patent27 if the public disclosure: (a) was made by the inventor, applicant or a person that obtained the information from the inventor or applicant inside or outside the territory of each Party; (b) occurred within at least six months prior to the date of filing of the application or priority date as applicable; and 25 For greater certainty, protection of geographical indications collectively means protection by registration or recognition. 16 For greater certainty, the filing date referred to in this Article includes, as applicable, the priority filing date under the Paris Convention. 17 �or greater certainty, patent may include utility model in accordance with national law and regulations. 11-9
(c) other requirements that the Party may impose in national legislation were met. 2. Each Party shall disregard information contained in a public disclosure of a design related to register an industrial design if the public disclosure: (a) was made by the designer, applicant or a person that obtained the information from the designer or applicant inside or outside the territory of each Party; (b) occurred within at least 12 months prior to the date of filing of the application or priority date as applicable; and ( c) if other requirements that the Party may impose in national legislation were met.28 Article 11.28: Procedural Aspects of Examination, Opposition and Invalidation of Certain Registered Patent and Industrial Design Each Party shall provide a system for the examination and registration of patents or industrial designs which includes, among other things: (a) communicating to the applicant in writing, which may be by electronic means, the reasons for any refusal to register patent or industrial design; (b) providing the applicant with an opportunity to respond to communications from the competent authorities, to contest any initial refusal, and to make a judicial appeal of any final refusal to register patent or industrial design; (c) providing an opportunity for interested parties to seek cancellation or invalidation of a registered patent or industrial design, and in addition may provide an opportunity for interested parties to oppose the registration of patent or industrial design; and (d) requiring decisions in opposition, cancellation, or invalidation proceedings to be reasoned and in writing, which may be delivered by electronic means. Article 11.29: Amendments, Corrections, and Observations I. Each Party shall provide an applicant for a patent or industrial design with at least one opportunity to make amendments, corrections or observations in connection with its application at least during the examination procedure. 2. Each Party may provide a right holder of a patent or industrial design with opportunities to make amendments or corrections after registration provided that such amendments or 28 For example, other requirements may be that the public disclosure was the consequence of the ill-use of the designer or applicant. 11-10
corrections do not change or expand the scope of the patent or industrial design right as a whole29 according to national law and regulations. Article I 1.30: Industrial Design Protection I. Each Party shall ensure that requirements for securing or enforcing registered industrial design protection do not unreasonably impair the opportunity to obtain or enforce such protection. 2. The duration of protection available for registered industrial designs shall amount to at least 20 years from the date of filing. Article 11.31: Exceptions A Party may provide limited exceptions to the exclusive rights conferred by a patent or an industrial design, provided that such exceptions do not unreasonably conflict with a normal exploitation of the patent or an industrial design and do not unreasonably prejudice the legitimate interests of the right holder, taking account of the legitimate interests of third parties.
SECTION G: COPYRIGHT AND RELATED RIGHTS
Article 11.32: General Provision I. Without prejudice to the obligations set out in the international agreements to which the Parties are party, each Party shall, in accordance with its laws and regulations, grant and ensure adequate and effective protection to the authors of works and to performers, producers ofphonograms and videograms and broadcasting organizations for their works, performances, phonograms, videograms, and broadcasts, respectively. 2. In addition to the protection provided for in the international agreements to which the Parties are party or which the Parties shall ratify or accede to under this Agreement, each Party shall: ( a) grant and ensure protection as provided for in Articles 5 through 8 and 10 of the WPPT, mutatis mutandis, to performers for their audiovisual, and visual performances; and (b) grant and ensure protection as provided for in Articles 11 through 14 of the WPPT, mutatis mutandis, to producers ofvideograms. 29 It is understood that the amendments or corrections which do not change or expand the scope of the right rue= 1: nf <he P"'"' o, ;nd,stn,J de,;gn d~" 1~ays ''"" ~ before nmd,cOO.
3. Each Party shall ensure that a broadcasting organization has at least the exclusive right of authorizing the following acts: the retransmission, the distribution of fixations, the transmission following fixation, the making available of fixed broadcasts, and the rebroadcasting by wireless means of broadcasts. 4. Each Party may, in its national legislation, provide for the same kinds of limitations or exceptions with regard to the protection of performers for their visual and audiovisual performances, to the protection of producers of videograms and of broadcasting organizations as it provides for, in its national legislation, in connection with the protection of copyright in literary and artistic works. Article 11.33: Term of Protection for Copyright and Related Rights Each Party shall provide that in cases in which the term of protection of a work, performance or phonogram is to be calculated: (a) on the basis of the life of a natural person, the term shall be not less than the life of the author and 50 years after the author's death; and (b) the term of protection to be granted to performers under this Agreement shall last, at least, until the end of a period of 50 years computed from the end of the year in which the performance was fixed; ( c) the term of protection to be granted to producers of phonograms and of videograms under this Agreement shall last, at least, until the end of a period of 50 years computed from the end of the year in which the phonogram and videogram was published, or failing such publication within 50 years from fixation of the phonogram and videogram, 50 years from the end of the year in which the fixation was made; (d) the term of protection to be granted to broadcasting organizations under this Agreement shall last, at least, until the end of a period of 20 years computed from the end of the year in which the broadcast took place. Article 11.34: Limitations and Exceptions I . With respect to this Section, each Party shall confine limitations or exceptions to exclusive rights to certain special cases that do not conflict with a normal exploitation of the work, performance or phonogram, and do not unreasonably prejudice the legitimate interests of the right holder. 2. This Article does not reduce or extend the scope of applicability of the limitations and exceptions permitted by the TRIPS Agreement, the Berne Convention, the WCT or the WPPT. 11-12
Article 11.35: Balance in Copyright and Related Rights Systems Each Party shall endeavour to achieve an appropriate balance in its copyright and related rights system, among other things by means of limitations or exceptions that are consistent with Article 11.34, including those for the digital environment, giving due consideration to legitimate purposes such as, but not limited to: criticism; comment; news reporting; teaching, scholarship, research, and other similar purposes; and facilitating access to published works for persons who are blind, visually impaired or otherwise print disabled. 30? 31 Article 11.36: Contractual Transfers Each Party shall provide that for copyright and related rights, any person acquiring or holding any economic right32 in a work, performance or phonogram: (a) may freely and separately transfer that right by contract; and (b) by virtue of contract, including contracts of employment underlying the creation of works, performances or phonograms, shall be able to exercise that right in that person's own name and enjoy fully the benefits derived from that right.33 Article 11.37: Obligations concerning Protection of Technological Measures and Rights Management Information I. Each Party shall provide adequate and effective legal remedies against any person who knowingly, without authorisation removes or alters any electronic rights management information and/or distributes, imports for distribution, broadcasts or communicates to the public, without authority, works or copies of works knowing that electronic rights management information has been removed or altered without authority. 2. For the purposes of this Article, the expression "rights management information" means any information provided by a right holder that identifies the work or other subject matter that is the object of protection und?r this Chapter, the author or any other right holder, or information about the terms and conditions of use of the work or other subject matter, and any numbers or codes that represent such information. Paragraph I shall apply when any of these items of information is associated with a copy of, or appears in connection with 30 As recognised by the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired, or Otherwise Print Disabled, done at Marrakesh, June 27, 2013 ("Marrakesh Treaty"). 31 For greater certainty, a use that has commercial aspects may in appropriate circumstances be considered to have a legitimate purpose under Article 11.34. 3} For greater certainty, this provision does not affect the exercise of moral rights. 33 Nothing in this Article affects a Party's ability to establish: (i) which specific contracts underlying the creation of works, performances or phonograms shall, in the absence of a written agreement, result in a transfer of economic rights by operation of law; and (ii) reasonable limits to protect the interests of the original right holders, taking into account the legitimate interests of the transferees_ t-11-13
the communication to the public of, a work or other subject matter that is the object of protection under this Chapter. Article 11.38: Collective Management The Parties recognize the role of collective management societies for copyright and related rights in collecting and distributing royalties based on practices that are fair, efficient, transparent and accountable, which may include appropriate record keeping and reporting mechanisms.
SECTION H: ENFORCEMENT
Article 11.39: General Obligation in Enforcement Each Party shall ensure that enforcement procedures as specified in this Section are available under its law so as to permit effective action against any act of infringement of intellectual property rights covered by this Chapter, including expeditious remedies to prevent infringements and remedies that constitute a deterrent to future infringements. These procedures shall be applied in such a manner as to avoid the creation of barriers to legitimate trade and to provide for safeguards against their abuse. Article 11.40: Border Measures I. Each Party shall, in conformity with its domestic law and regulations and the provisions of Part HI, Section 4 of the TRIPS Agreement adopt or maintain procedures to enable a right holder, who has valid grounds for suspecting that the importations of counterfeit trademark or pirated copyright goods may take place, to lodge an application in writing with the competent authorities, in the Party in which the border measure procedures are applied, for the suspension by that Party's customs authorities of the release into free circulation of such goods. 2. A Party may enable such an application to be made in respect of goods which involve other infringements of intellectual property rights, provided that the requirements of Part Ill, Section 4 of the TRIPS Agreement are met. A Party may also provide for corresponding procedures concerning the suspension by the customs authorities of the release of infringing goods destined for exportation from their territory as per its domestic laws and regulation.
Chapter 12. INVESTMENT
Article 12.1. UAE-Serbia Bilateral Investment Treaty
The Parties note the existence of and reaffirm the Agreement between the Republic of Serbia and the United Arab Emirates on the Promotion and Reciprocal Protection of Investments, done at Abu Dhabi on 17 February 2013 ("Serbia-UAE Bilateral Investment Agreement").
Article 12.2. Promotion of Investment
The Parties affirm their desire to promote an attractive investment climate and expand trade in products and services. Consistent with Article 2 of the Serbia-UAE Bilateral Investment Agreement, the Parties shall take appropriate measures to encourage and facilitate the exchange of goods and services and to secure favorable conditions for long-term economic development and diversification of trade between the two countries.
Article 12.3. Technical Council
The Parties shall establish a Serbia-United Arab Emirates Council on Investment ("the Council"), which shall be composed of representatives of both Parties. The side of Serbia will be chaired by the Ministry of Economy of Serbia or its successor and the side of the United Arab Emirates will be chaired by UAE Ministry of Finance. The Council may establish working groups as the Parties deem necessary.
Article 12.4. Objectives of the Council
1. The objectives of the Council are as follows:
(a) to promote and enhance economic cooperation between the Parties;
(b) to monitor trade and investment relations, to identify opportunities for expanding investment, and to identify issues relevant to investment that may be appropriate for negotiation in an appropriate forum;
(c) to hold consultations on specific investment matters of interest to the Parties;
(d) to work toward the enhancement of investment flows;
(e) to identify and work toward the removal of impediments to investment flows; and
(f) to seek the views of the private sector, where appropriate, on matters related to the work of the Council.
2. For further clarification, the Council shall not undertake the role of "Settlement of disputes between a Contracting Party and an investor of the other Contracting Party" nor shall it undertake the role of "Settlement of disputes between the Contracting Parties" as established by Articles 9 and 10 of the Serbia-UAE Bilateral Investment Agreement.
Article 12.5. Role of the Council
The Council shall meet at such times and venues as agreed by the Parties, but the Parties shall endeavour to meet no less than once per year. A Party may refer a specific investment matter to the Council by delivering a written request to the other Party that includes a description of the matter concerned. The Council shall take up the matter promptly after the request is delivered unless the requesting Party agrees to postpone discussion of the matter. Each Party shall endeavour to provide for an opportunity for the Council to discuss a matter before taking actions that could affect adversely the investment interests of the other Party.
Article 12.6. Dispute Settlement
Neither Party shall have recourse to Chapter 15 (Dispute Settlement) of this Agreement for any matter arising under this Chapter.
Chapter 13. SMALL AND MEDIUM-SIZED ENTERPRISES
Article 13.1: General Principles I. The Parties, recognizing the fundamental role of small and medium-sized enterprises ("SMEs") in maintaining dynamism and enhancing competitiveness of their respective economies, shall foster closer cooperation between SMEs of the Parties and cooperate in promoting jobs and growth in SM Es. 2. The Parties recognize the integral role of the private sector in the SME cooperation to be implemented under this Chapter. Article 13.2: Cooperation to Increase Trade and Investment Opportunities for SMEs With a view to more robust cooperation between the Parties to enhance commercial opportunities for SMEs, the Parties shall seek to increase trade and investment opportunities, and in particular shall: (a) promote cooperation between their small business support infrastructure, including dedicated SME centers, incubators and accelerators, export assistance centers, and other centers as appropriate, to create an international network for sharing best practices, exchanging market research, and promoting SME participation in international trade, as well as business growth in local markets; (b) strengthen their collaboration on activities to promote SMEs owned by women and youth, as well as start-ups, and promote partnerships among these SMEs and their participation in international trade; ( c) enhance their cooperation to exchange information and best practices in areas including improving SME access to capital and credit, SME participation in covered government procurement opportunities, and helping SMEs adapt to changing market conditions; and (d) encourage participation in purpose-built mobile or web-based platforms, for business entrepreneurs and counselors to share information and best practices to help SMEs link with international suppliers, buyers, and other potential business partners. Article 13.3: Information Sharing I. Each Party shall establish or maintain its own free, publicly accessible website containing information regarding this Agreement, including: (a) the text of this Agreement; 13-1
(b) a summary of this Agreement; and (c) infonnation designed for SMEs that contains: (i) a description of the provisions in this Agreement that the Party considers to be relevant to SMEs; and (ii) any additional infonnation that would be useful for SMEs interested in benefitting from the opportunities provided by this Agreement. 2. Each Party shall include in its website links or information through automated electronic transfer to: (a) the equivalent websites of the other Party; and (b) the websites of its own government agencies and other appropriate entities that provide information the Party considers useful to any person interested in trading, investing, or doing business in that Party's territory. 3. Subject to each Party's laws and regulations, the information described in paragraph 2(b) may include: (a) customs regulations, procedures, or enquiry points; (b) regulations or procedures concerning intellectual property, trade secrets, and patent protection rights; (c) technical regulations, standards, quality or conformity assessment procedures; (d) sanitary or phytosanitary measures relating to importation or exportation; (e) foreign investment regulations; (t) business registration; (g) trade promotion programs; (h) competitiveness programs; (i) SME investment and financing programs; (j) taxation or accounting issues; (k) government procurement opportunities; and (I) other information which the Party considers to be useful for SMEs. 13-2
4. Each Party shall regularly review the information and links on the website referred to in paragraphs I and 2 to ensure the information and links are up-to-date and accurate. 5. To the extent possible, each Party shall make the information described in this Article available in English. If this information is available in another authentic language of this Agreement, the Party shall endeavor to make this information available, as appropriate. Article 13.4: Subcommittee on SME Issues I. The Parties hereby establish the Subcommittee on SME Issues ("SME Subcommittee"), comprising national and local government representatives of each Party. 2. The SME Subcommittee shall: (a) identify ways to assist SMEs in the Paities' territories to take advantage of the commercial opportunities resulting from this Agreement and to strengthen SME competitiveness; (b) identify and recommend ways for further cooperation between the Parties to develop and enhance partnerships between SMEs of the Parties; (c) exchange and discuss each Party's experiences and best practices in supporting and assisting SME exporters with respect to, among other things, training programs, trade education, trade finance, trade missions, trade facilitation, digital trade, identifying commercial partners in the territory of the other Party, and establishing good business credentials; (d) promote seminars, workshops, webinars, mentorship sessions, or other activities to inform SMEs of the benefits available to them under this Agreement; (e) explore opportunities for capacity building to facilitate each Party's work in developing and enhancing SME export counseling, assistance, and training programs; (t) recommend additional information that a Party may include on the website referred to in Article 13.3; (g) review and coordinate its work program with the work of other subcommittees, working groups, and other subsidiary bodies established under this Agreement, as well as of other relevant international bodies, to avoid duplication of work programs and to identify appropriate opportunities for cooperation to improve the ability of SMEs to engage in trade and investment opportunities resulting from this Agreement; (h) collaborate with and encourage subcommittees, working groups and other subsidiary bodies established under this Agreement to consider SME-related ~tments and activities into1::ic wock;
(i) review the implementation and operation of this Chapter and SME-related provisions within this Agreement and report findings and make recommendations to the Joint Committee that can be included in future work and SME assistance programs as appropriate; (j) facilitate the development of programs to assist SMEs to participate and integrate effectively into the Patties' regional and global supply chains; (k) promote the participation of SM Es in digital trade in order to take advantage of the opportunities resulting from this Agreement and rapidly access new markets; (I) facilitate the exchange of information on entrepreneurship education and awareness programs for youth and women to promote the entrepreneurial environment in the territories of the Parties; (m) submit on an annual basis, unless the Parties decide otherwise, a report of its activities and make appropriate recommendations to the Joint Committee; and (n) consider any other matter pertaining to SMEs as the SME Subcommittee may decide, including issues raised by SMEs regarding their ability to benefit from this Agreement. 3. The SME Subcommittee shall .convene within one year after the date of entry into force of this Agreement and thereafter meet annually, unless the Parties decide otherwise. 4. The SME Subcommittee may seek to collaborate with appropriate experts and international donor organizations in carrying out its programs and activities. Article 13.5: Dispute Settlement Neither Party shall have recourse to Chapter 15 (Dispute Settlement) of this Agreement for any matter arising under this Chapter. 13-4
Chapter 14. ECONOMIC COOPERATION
Article 14.1: Objectives
I. The Parties shall promote cooperation under this Agreement for their mutual benefit in order to liberalize and facilitate trade and investment between them and foster economic growth. 2. Economic cooperation under this Chapter shall be built upon a common understanding between the Parties to suppo1i the implementation of this Agreement, with the objective of maximising its benefits, supporting pathways to trade and investment facilitation, and further improving market access and openness to contribute to the sustainable inclusive economic growth and prosperity of the Parties. Article 14.2: Scope I. Economic cooperation under this Chapter shall support the effective and efficient implementation and utilisation of this Agreement through activities that relate to trade and investment. 2. Economic cooperation under this Chapter shall initially focus on the following areas: (a) infrastructure and !ogistics; (b) tourism; (c) transports; (d) shipping and maritime; (e) investment and trade promotion; (f) digital economy and information communication technology ("TCT"); (g) energy; (h) innovation; and (i) other areas of cooperation identified in other Chapters of this Agreement. 3. The Parties may agree in the Annual Work Program on Economic Cooperation Activities ("Annual Work Program") to modify the above list, including by adding other areas for economic cooperation. 14-1
Article 14.3: Subcommittee on Economic Cooperation L For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Subcommittee on Economic Cooperation ("Economic Cooperation Subcommittee"). 2. The Economic Cooperation Subcommittee shall be chaired on the Serbia side by the Serbian Ministry in charge of bilateral economic cooperation and on the UAE side by the UAE Ministry of Economy. 3. The Economic Cooperation Subcommittee shall undertake the following functions: (a) monitor and assess the implementation of this Chapter; (b) identify new opportunities and agree on new ideas for prospective cooperation or capacity building activities; (c) formulate and develop Annual Work Programme proposals and their implementation mechanisms; (d) coordinate, monitor, and review progress of the Annual Work Programme to assess its overall effectiveness and contribution to the implementation and operation of this Chapter; (e) suggest amendments to the Annual Work Programme through periodic evaluations; (f) cooperate with other subcommittees and/or subsidiary bodies established under this Agreement to perform stocktaking, monitoring, and benchmarking on any issues related to the implementation of this Agreement, as well as to provide feedback and assistance in the implementation and operation of this Chapter; and (h) report to and, if deemed necessary, consult with the Joint Committee in relation to the implementation and operation of this Chapter. Article 14.4: Annual Work Program on Economic Cooperation Activities I. The Economic Cooperation Subcommittee shall adopt the Annual Work Program based on proposals submitted by the Parties. 2. Each activity in the Annual Work Program developed under this Chapter shall: (i) be guided by the objectives agreed in Article 14.1; (ii) be related to trade or investment and support the implementation of this Agreement; (iii) involve both Parties; (iv) address the mutual priorities of the Parties; and (v) avoid duplicating existing economic cooperation activities. 14-2
Article 14.5: Competition Policy I . The Parties recognise the importance of general cooperation in the area of competition policy. The Parties may cooperate to exchange information relating to the development of competition policy, subject to their domestic laws and regulations and available resources. The Parties may conduct such cooperation through their competent authorities. 2. The Parties may consult on matters related to anti-competitive practices and their adverse effects on trade. The consultations shall be without prejudice to the autonomy of each Party to develop, maintain and enforce its domestic competition laws and regulations. Article 14.6: Global Value Chains I. The Paities acknowledge the importance of Global Value Chains ("GVCs"), as a means to modernize and widen bilateral economic relation between their traders and investors. 2. The Parties acknowledge that international trade and investment are engines of economic growth and intend to facilitate their companies' internationalization and their insertion into GVCs. 3. The Parties affirm the relevance of micro, small and medium enterprises in a country's productive structure and their impact on employment, and that their adequate insertion into GVCs will contribute to a better allocation of resources and the economic benefits derived from international trade, including the diversification and enhancing of value added in exports. 4. The Parties acknowledge the importance of the participation of the private sector as well as the entrepreneurial community as fundamental actors within GVCs, and the relevance of creating an adequate environment. Article 14.7: Resources I . Resources for economic cooperation under this Chapter shall be provided in a manner as agreed by the Parties and in accordance with the laws and regulations of the Parties. 2. The Parties, on the basis of mutual benefit, may consider cooperation with, and contributions from, external parties to support the implementation of the Annual Work Program. Article 14.8: Means of Cooperation The Parties shall endeavour to encourage technical, technological and scientific economic cooperation, through the following: 14-3
(a) joint organization of conferences, seminars, workshops, meetings, training sessions and outreach and education programs; (b) exchange of delegations, professionals, technicians and specialists from the academic sector, institutions dedicated to research, private sector and governmental agencies, including study visits and internship programs for professional training; (c) dialogue and exchange of experiences between the Parties' private sector and agencies involved in trade promotion; (d) initiation of the knowledge-sharing platform aiming to transfer experience and best practices in the field of government development and modernization to other countries through UAE's Government Experience Exchange Programme; (e) promotion of joint business initiatives between entrepreneurs of the Parties; and (f) any other form of cooperation that may be agreed by the Parties. Article 14.8: Dispute Settlement Neither Party shall have recourse to Chapter 15 (Dispute Settlement) of this Agreement for any matter arising under this Chapter.
Chapter 15. DISPUTE SETTLEMENT
Article 15.1: Objective
The objective of this Chapter is to establish an effective and efficient mechanism for avoiding and settling disputes between the Parties concerning the interpretation and application of this Agreement with a view to reaching, where possible, a mutually agreed solution. Article 15.2: Cooperation The Parties shall endeavor to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation to arrive at a mutually satisfactory resolution of any matter that might affect its operation. Article 15.3: Scope of Application 1. Unless otherwise provided for in this Agreement, this Chapter shall apply with respect to the settlement of any dispute between the Parties concerning the interpretation, implementation, or application of this Agreement (hereinafter referred to as "covered provisions''), wherever a Party considers that: (a) a measure of the other Party is inconsistent with its obligations under this Agreement; or (b) the other Party otherwise failed to carry out its obligations under this Agreement. 2. This Chapter shall not cover non-violation complaints and other situation complaints. Article 15.4: Contact Points Any request, notification, written submission or other document made in accordance with this Chapter shall be delivered to the other Party through its contact point referred to in Article 17.2 (Communications). Article 15.5: Request for Information Before a request for consultations, good offices, conciliation or mediation is made pursuant to Article 15.6 or 15.7 respectively, a Party may request in writing any relevant information with respect to a measure at issue. The Party to which that request is made shall make all efforts to provide the requested information in a written response to be submitted no later than 20 days after the date ofreceipt of the request. 15-1
Article 15.6: Consultations 1. The Parties shall endeavor to resolve any dispute referred to in Article 15.3 by entering into consultations in good faith with the aim of reaching a mutually agreed solution. 2. A Party shall seek consultations by means of a written request delivered to the other Party giving the reasons for the request, including identification of the measures at issue, a description of the factual basis, and an indication of the legal basis specifying the covered provisions that it considers applicable. 3. The Party to which the request for consultations is made shall reply to the request promptly, but no later than IO days after the date of receipt of the request. Consultations shall be held within 30 days of the date of receipt of the request. The consultations shall be deemed to be concluded within 30 days of the date ofreceipt of the request, unless the Parties agree otherwise. 4. Consultations on matters of urgency, including those which concern perishable goods, shall be held within 15 days of the date of receipt of the request. The consultations shall be deemed to be concluded within those 15 days unless the Parties agree otherwise. 5. During consultations, each Party shall provide sufficient information so as to allow a complete examination of the measure at issue including how that measure is affecting the operation and application of this Agreement. 6. ? Consultations, including all information disclosed and positions taken by the Parties during consultations, shall be confidential, and without prejudice to the rights of either Party in any further proceedings. 7. Consultations may be held in person or by any other means of communication agreed by the Parties. Unless the Parties agree otherwise, consultations, if held in person, shall take place in the territory of the Party to which the request is made. 8. If the Party to which the request is made does not respond to the request for consultations within 10 days of the date of its receipt, or if consultations are not held within the timeframes laid down in paragraph 3 or in paragraph 4, respectively, or if the Parties agree not to have consultations, or if consultations have been concluded and no mutually agreed solution has been reached, the Party that sought consultations may have recourse to Article 15.8. Article 15.7: Good Offices, Conciliation or Mediation I. 2. The Parties may at any time agree to enter into procedures for good offices, conciliation or mediation. They may begin at any time and be terminated by either Party at any time. Proceedings involving good offices, conciliation or mediation, and the particular positions taken by the Parties in these proceedings, shall be confidential and without prejudice to the i-15-2
rights of either Party in any further proceedings under this Chapter or any other proceedings before a forum selected by the Parties. 3. If the Parties agree, procedures for good offices, conciliation or mediation may continue while the panel procedures proceed. Article 15.8: Establishment of a Panel 1. The complaining Party may request the establishment of a Panel if: (a) the respondent Party does not reply to the request for consultations within the time frames in Article 15.6; (b) the consultations referred to in Article 15.6 are not held or fail to settle a dispute within 30 days, or 15 days in relation to urgent matters including those which concern perishable goods, after the date of the receipt of the request for consultations by the respondent Party. 2. The request for the establishment of a Panel shall be made by means of a written request delivered to the other Party and shall identify the measure at issue and indicate the factual basis of the complaint and the legal basis specifying the relevant covered provisions in a manner sufficient to present how such measure is inconsistent with those provisions. 3. When a request is made by the complaining Party in accordance with paragraph 1, a Panel shall be established. Article 15.9: Composition of a Panel 1. Unless the Parties agree otherwise, a Panel shall consist of three panelists. 2. Within 20 days after the establishment of a Panel, each Party shall appoint a panelist. The Parties shall, by common agreement, appoint the third panelist, who shall serve as the chairperson of the Panel, within 40 days after the establishment ofa Panel. 3. If either Party fails to appoint a panelist within the time period established in paragraph 2, the other Party may request that the Director-General of the WTO designate the unappointed panelist within 20 days of that request. 4. If the Parties do not agree on the chairperson of the Panel within the time period established in paragraph 2, they shall within the next 10 days, exchange their respective lists comprising three nominees each who shall not be nationals or permanent residents of either Party. The chairperson shall then be appointed by draw oflot from the lists within 10 days after the expiry of the time period during which the Parties shall exchange their respective lists ofnominees. The selection by lot of the chairperson of the Panel shall be made by the Joint Committee. 15-3
5. If a Party fails to submit its list of three nominees within the time period established in paragraph 4, the chairperson shall be appointed by draw of lot from the list submitted by the other Party. 6. The date of composition of the Panel shall be the date on which the last of the three selected panelists has notified to the Parties the acceptance of his or her appointment. Article 15.10: Decision on Urgency If a Party so requests, the Panel shall decide, within 15 days of its composition, whether the dispute concerns matters of urgency. Article I 5.11: Requirements for Panelists I. Each panelist shall: (a) have demonstrated expertise in law, international trade, and other matters covered by this Agreement; (b) be independent of, and not be affiliated with or take instructions from, either Party; ( c) serve in their individual capacities and not take instructions from any organization or government with regard to matters related to the dispute; (d) comply with the Code of Conduct for Panelists established in Appendix 158; and (e) be chosen strictly on the basis of objectivity, reliability, and sound judgment. 2. The chairperson shall also have experience in dispute settlement procedures. 3. Persons who provided good offices, conciliation or mediation to the Parties pursuant to Article 15.7, in relation to the same or a substantially equivalent matter, shall not be eligible to be appointed as panelists in that matter. Article 15.12: Replacement of Panelists If any of the panelists of the original Panel becomes unable to act, withdraws or needs to be replaced because that panelist does not comply with the requirements of the Code of Conduct, a successor panelist shall be appointed in the same manner as prescribed for the appointment of the original panelist and the successor shall have the powers and duties of the original panelist. The work of the Panel shall be suspended during the appointment of the successor panelist. Article 15.13: Functions of the Panel Unless the Parties otherwise agree, the Panel: 15-4
(a) shall make an objective assessment of the matter before it, including an objective assessment of the facts of the case and the applicability of and conformity of the measure at issue with the covered provisions; (b) shall set out, in its decisions and reports, the findings of fact and law and the rationale behind any findings and conclusions that it makes; (c) may make recommendations on the means to resolve the dispute; and (d) should consult regularly and simultaneously with the Parties and provide adequate opportunities for the development of a mutually agreed solution. Article 15.14: Terms of Reference 1. Unless the Parties otherwise agree within 15 days after the date of establishment of the Panel, the terms of reference of the Panel shall be: "to examine, in the light of the relevant covered provisions of this Agreement cited by the Parties, the matter referred to in the request for the establishment of the Panel, to make findings on the conformity of the measure at issue with the relevant covered provisions of this Agreement, as well as recommendations, if any, on the means to resolve the dispute, and to deliver a report in accordance with Articles 15.18 and 15.19." 2. If the Parties agree on other terms of reference than those referred to in paragraph I, they shall notify the agreed terms of reference to the Panel no later than five days after their agreement. Article 15.15: Rules of Interpretation I. The Panel shall interpret the covered provisions in accordance with customary rules of interpretation of public international law. 2. When appropriate, the Panel may also take into account relevant interpretations in reports of prior panels established under this Agreement and reports of panels and the Appellate Body adopted by the Dispute Settlement Body of the WTO. Article 15.16: Procedures of the Panel I. Unless the Parties otherwise agree, the Panel shall follow the model rules of procedure set out in Appendix 15A. 2. The Panel may, after consulting with the Parties, adopt additional rules of procedure consistent with the model rules of procedure and which ensure equal treatment between the Parties. 3. There shall be no ex parte communications with the Panel. 15-5
4. The deliberations of the Panel and the documents submitted to it shall be kept confidential. 5. A Party asserting that a measure of the other Party is inconsistent with the provisions of this Agreement shall have the burden of establishing such inconsistency. A Party asserting that a measure is subject to an exception under this Agreement shall have the burden of establishing that the exception applies. 6. The Panel should consult with the Parties as appropriate and provide adequate opportunities and simultaneous participation for the development of a mutually agreed solution. 7. The Panel shall adopt its decisions, including its reports, by consensus, but if consensus is not possible then by a majority of its members. Any member of the Panel may furnish separate opinions on matters not unanimously agreed, but dissenting opinions of members shall in no case be disclosed. Article 15.17: Receipt of Information I. Upon the request of a Party, or on its own initiative, the Panel may seek from the Parties relevant information it considers necessary and appropriate. The Parties shall respond promptly and fully to any request by the Panel for information. 2. Upon request of a Party or on its own initiative, the Panel may seek from any source any information that it considers appropriate. The Panel also has the right to seek the opinion of experts, as it considers appropriate, and subject to any terms and conditions agreed by the Parties, where applicable. 3. Upon request of a Party, or on its own initiative, the Panel may seek information and technical advice from any individual or body that it deems appropriate, provided that the Parties agree and subject to such terms and conditions as the Parties agree. 4. Any request submitted and information obtained by the Panel under this Article shall be made simultaneously available to bnth the Parties and the Parties may provide comments on that information. Article 15.18: Interim Report I. The Panel shall deliver an interim report to the Parties within 90 days after the date of composition of the Panel. When the Panel considers that this deadline cannot be met, the chairperson of the Panel shall notify the Parties in writing, stating the reasons for the delay and the date on which the Panel plans to deliver its interim report. Under no circumstances shall the delay exceed 30 days after the deadline. 2. The interim report shall set out a descriptive part and the Panel's findings, and conclusions and may make recommendations. 15-6
3. Each Party may submit to the Panel written comments and a written request to review precise aspects of the interim report within 15 days of the date of issuance of the interim report, subject to notification to the other Party. A Party may comment on the others Party's request within six days of the delivery of the request. 4. After considering any written comments and requests by each Party on the interim report, the Panel may modify the interim repmt and make any further examination it considers appropriate. Article 15.19: Final Report I. The Panel shall deliver its final report to the Parties within 120 days of the date of composition of the Panel. When the Panel considers that this deadline cannot be met, the chairperson of the Panel shall notify the Parties in writing, stating the reasons for the delay and the date on which the Panel plans to deliver its final report. Under no circumstances shall the delay exceed 30 days after the deadline. 2. The final report shall include a discussion of any written comments and requests made by the Parties on the interim report. The Panel may, in its final report, suggest ways in which the final report should be implemented. 3. The final report shall be made public within 15 days of its delivery to the Parties, unless the Parties otherwise agree to publish the final report only in parts or not to publish the final report. Upon request of a Party, the published version of the final report shall not contain confidential information, in accordance with its legislation. Article 15.20: Implementation of the Final Report I. Where the Panel finds that the respondent Party has acted inconsistently with a covered provision, the respondent Party shail take any measure necessary to comply promptly and in good faith with the findings and conclusions in the final report. 2. The respondent Party� shall promptly comply with the ruling of the Panel. If it is impracticable to comply immediately, the respondent Party shall, no later than 30 days after the delivery of the final report, notify the complaining Party of the length of the reasonable period of time necessary for compliance with the final report and the Parties shall endeavour to agree on the reasonable period of time required for compliance with the final report. Article 15.21: Reasonable Period of Time for Compliance l. If the Parties have not agreed on the duration of the reasonable period of time, the complaining Party may, no later than 20 days after the date of receipt of the notification made by the respondent Party in accordance with Article 15.20.2 request in writing the original Panel to determine the length of the reasonable period of time. Such request shall +-15-7
be notified simultaneously to the respondent Party. The 20-day period referred to in this paragraph may be extended by mutual agreement of the Parties. 2. The original Panel shall deliver its decision to the Parties within 20 days from the relevant request. 3. The duration of the reasonable period of time for compliance with the final report may be extended by mutual agreement of the Parties. Article 15.22: Compliance Review 1. The respondent Party shall deliver a written notification of its progress in complying with the final report to the complaining Party at least one month before the expiry of the reasonable period of time for compliance with the final report unless the Parties agree otherwise. 2. The respondent Party shall, no later than at the date of expiry of the reasonable period of time, deliver a notification to the complaining Party of any measure that it has taken to comply with the final report along with a description of how the measure ensures compliance sufficient to allow the complaining Party to assess the measure before the expiry of the reasonable period of time. 3. Where the Parties disagree on the existence of measures to comply with the final report, or their consistency with the covered provisions, the complaining Party may request in writing the original panel to decide on the matter before compensation can be sought or suspension of benefits can be applied in accordance with Article 15.23. l(c). Such request shall be notified simultaneously to the respondent Party. 4. The request shall provide the factual and legal basis for the complaint, including the identification of the specific measures at issue and an indication of why any measures taken by the respondent fail to comply with the final report or are otherwise inconsistent with the covered provisions. 5. The Panel shall deliver its decision to the Parties within 60 days of the date of delivery of the request. Article 15.23: Temporary Remedies in Case of Non-Compliance 1. If the respondent Party: (a) fails to notify any measure taken to comply with the final report before the expiry of the reasonable period of time; (b) notifies the complaining Party in writing that it is not possible to comply with the final report within the reasonable period of time; or 1r 15-8
(c) the original Panel finds that no measure taken to comply exists or that the measure taken to comply with the final report as notified by the Party complained against is inconsistent with the covered provisions; the respondent Party shall, on request of the complaining Party, enter into consultations with a view to agreeing on a mutually satisfactory agreement or any necessary compensation. 2. If the Parties fail to reach a mutual satisfactory agreement or to agree on compensation within 20 days after the date ofreceipt of the request made in accordance with paragraph I, the complaining Party may deliver a written notification to the respondent Party that it intends to suspend the application to that Party of benefits or other obligations under this Agreement. The notification shall specify the level of intended suspension of benefits or other obligations. 3. The complaining Party may begin the suspension of benefits or other obligations referred to in the preceding paragraph 20 days after the date when it served notice on the Party complained against, unless the respondent Party made a request under paragraph 6. 4. The suspension of benefits or other obligations: (a) shall be at a level equivalent to the nullification or impairment that is caused by the failure of the respondent Party to comply with the final report; and (b) shall be restricted to benefits accruing to the respondent Party under this Agreement. 5. In considering what benefits to suspend in accordance with paragraph 2, the complaining Party shall apply the following principles: (a) the complaining Party should first seek to suspend benefits in the same sector or sectors as that affected by the measure that the Panel has found to be inconsistent with this Agreement or have caused nullification or impairment;34 (b) the complaining Party may suspend benefits in other sectors, if it considers that it is not practicable or effective to suspend benefits or other obligations in the same sector; (c) in the selection of the benefits to suspend, the complaining Party shall endeavor to take into consideration those which least disturb the implementation of this Agreement. 6. The suspension of benefits or other obligations shall be temporary and shall only apply until the inconsistency of the measure with the relevant covered provisions which has been 34 For purposes of this paragraph, "sector" means: (i) with respect to goods, all goods; (ii) with respect to services, a principal sector as identified in the current "Services Sectoral Classification List" which identifies such sectors. 0 15-9
found in the final report has been removed, the Parties have reached a mutually satisfactory agreement, or have agreed on any necessary compensation. 7. If the respondent Party considers that the suspension of benefits does not comply with paragraphs 4 and 5, that Party may request in writing the original Panel to examine the matter no later than 15 days after the date of receipt of the notification referred to in paragraph 2. That request shall be notified simultaneously to the complaining Party. The original Panel shall notify to the Parties its decision on the matter no later than 30 days of the receipt of the request from the respondent Party. Benefits or other obligations shall not be suspended until the original Panel has delivered its decision. The suspension of benefits or other obligations shall be consistent with this decision. Article 15.24: Review of any Measure Taken to Comply After the Adoption of Temporary Remedies I . Upon the notification by the respondent Party to the complaining Party of the measure taken to comply with the final report: (a) in a situation where the right to suspend benefits or other obligations has been exercised by the complaining Party in accordance with Article 15.23, the complaining Party shall terminate the suspension of benefits or other obligations no later than 30 days after the date of receipt of the notification, with the exception of the cases referred to in paragraph 2; or (b) in a situation where necessary compensation has been agreed, the respondent Party shall terminate the application of such compensation no later than 30 days after the date of receipt of the notification, with the exception of the cases referred to in paragraph 2. 2. If the Parties do not reach an agreement on whether the measure notified in accordance with paragraph I is consistent with the relevant covered provisions within 30 days after the date ofreceipt of the notification, the complaining Party shall request in writing the original Panel to examine the matter. That request shall be notified simultaneously to the respondent Party. The decision of the Panel shall be notified to the Parties no later than 30 days after the date of submission of the request. If the Panel decides that the measure notified in accordance with paragraph I is consistent with the relevant covered provisions, the suspension of benefits or other obligations, or the application of the compensation, shall be terminated no later than 15 days after the date of the decision. If the Panel determines that the notified measure achieves only partial compliance with the covered provisions, the level of suspension of benefits or other obligations, or of the compensation, shall be adapted in light of the decision of the Panel. Article 15.25: Suspension and Termination of Proceedings If both Parties so request, the Panel shall suspend its work for a period agreed by the Parties and not exceeding 12 consecutive months. In the event of a suspension of the work of the Panel, the <elevsn~s undec this Chaptec shall 1:~1:xtended by the same peclod of time foe which
the work of the Panel was suspended. The Panel shall resume its work before the end of the suspension period at the written request of both Parties. If the work of the Panel has been suspended for more than 12 consecutive months, the authority of the Panel shall lapse and the dispute settlement procedure shall be terminated. Article 15.26: Choice of Forum I. Unless otherwise provided in this Article, this Chapter is without prejudice to the rights of the Parties to have recourse to dispute settlement procedures available under other international trade agreements to which they are both parties. 2. When a dispute arises with regard to the alleged inconsistency of a particular measure with an obligation under this Agreement and a substantially equivalent obligation under another international trade agreement to which both Parties are party, including the WTO agreements, the complaining Party may select the forum in which to settle the dispute. 3. Once the complaining Party has requested the establishment of, or referred a matter to, a dispute settlement Panel under an agreement referred to paragraph 2, the forum selected shall be to the exclusion of other fora. 4. For the purpose of paragraph 3: (a) dispute settlement proceedings under this Chapter are deemed to be initiated when a Party requests the establishment ofa Panel in accordance with Article 15.8; (b) dispute settlement proceedings under the WTO Agreement are deemed to be initiated when a Party requests the establishment of a panel in accordance with Article 6 of the DSU; and (c) dispute settlement proceedings under any other agreement are deemed to be initiated when a Party requests the establishment of a dispute settlement panel in accordance with the relevant provisions of that agreement. Article 15.27: Costs 1. Unless the Parties otherwise agree, the costs of the Panel and other expenses associated with the conduct of its proceedings shall be borne in equal parts by both Parties. 2. Each Party shall bear its own expenses and legal costs in the Panel proceedings. Article 15.28: Mutually Agreed Solution I. The Parties may reach a mutually agreed solution at any time with respect to any dispute referred to in Article 15.3. 15-11
2. If a mutually agreed solution is reached during the Panel procedure, the Parties shall jointly notify that solution to the chairperson of the Panel. Upon such notification, the Panel shall be terminated. 3. Each Party shall take measures necessary to implement the mutually agreed solution within the agreed time period. 4. No later than at the expiry of the agreed time period, the implementing Party shall inform the other Party, in writing, of any measure that it has taken to implement the mutually agreed solution. Article 15.29: Time Periods l. All time periods laid down in this Chapter shall be counted in calendar days from the day following the act to which they refer. 2. Any time period referred to in this Chapter may be modified by mutual agreement of the Parties. Article 15.30: Appendices The Joint Committee may modify Appendicesl5A (Rules of Procedure) and 158 (Code of Conduct for Panelists). 15-12
APPENDIX 15A. RULES OF PROCEDURE
Timetable I. After consulting the Parties, the Panel shall, whenever possible within seven days of the appointment of the final panelist, fix the timetable for the panel process. The indicative timetable set out in paragraph 25 to 31 below should be used as a guide. 2. The Panel process shall, as a general rule, not exceed 120 days from the date of establishment of the Panel until the date of the final report, unless the Parties otherwise agree. 3. Should the Panel consider there is a need to modify the timetable, it shall inform the Parties in writing of the proposed modification and the reason for it. Written Submissions and other Documents 4. Unless the Panel otherwise decides, the complaining Party shall deliver its first written submission to the Panel no later than 15 days after the date of appointment of the final panelist. The Party complained against shall deliver its first written submission to the Panel no later than 20 days after the date of delivery of the complaining Party's first written submission. Copies shall be provided for each panelist. 5. Each Party shall also provide a copy of its first written submission to the other Party at the same time as it is delivered to the Panel. 6. Within 10 days of the conclusion of the hearing, each Party may deliver to the Panel and the other Party a supplementary written submission responding to any matter that arose during the hearing. 7. The Parties shall transmit all information or written submissions, written versions of oral statements and responses to questions put by the Panel to the other Party to the dispute at the same time as it is submitted to the Panel. 8. All written documents provided to the Panel or by one Party to the other Party shall be provided by electronic means. 9. Minor errors of a clerical nature in any request, notice, written submission or other document related to the Panel proceeding may be corrected by delivery of a new document clearly indicating the changes. Operation of the Panel 10. The Chairperson of the Panel shall preside at all of its meetings which will be held on line and exceptionally in person upon an agreement of the Parties. The Panel will conduct its 15-A-1