Heading 16.05 Prepared or preserved crustaceans, molluscs and other marine invertebrates
Subheading 2301.20 Flour, food, fish pellets;
Repairs or alterations: those that do not include operations or processes that destroy the essential characteristics of a merchandise or convert it into a new or commercially different merchandise. For these purposes, it will be understood that an operation or process that forms part of the production or assembly of an unfinished merchandise to transform it into a finished merchandise, is not a repair or alteration of the unfinished merchandise; the component of a commodity is a commodity that may be subject to repair or modification; and
Export subsidies for agricultural goods means those which relate to:
a) The granting of direct subsidies for export, including payments in kind, by governments or government agencies, to an enterprise and a branch of production, to an agricultural producers of goods to a cooperative or other producers of such association or to a marketing board;
b) The sale or export for disposal of non-commercial stocks of agricultural goods, by governments or government agencies at a price lower than the comparable price charged to buyers in the domestic market for a similar agricultural goods;
c) Payments on the export of agricultural goods that are financed by virtue of governmental measures, whether or not a charge on the public accounts, including payments financed from the proceeds of a levy imposed on the agricultural goods concerned or to an agricultural product from which the exported agricultural goods;
d) The award of subsidies to reduce the costs of marketing services exports of agricultural goods (other than the easy availability of promotion and advice on exports), including the costs of handling, processing and other processing costs and the costs of international transport and freight;
e) The costs of the internal transport and freight charges on export shipments, established or imposed by Governments on terms more favourable than for domestic shipments; or
f) Subsidies on agricultural goods contingent on their incorporation in exported goods.
Article 3.02. Scope
This chapter applies to trade in goods between the parties.
1. Each Party shall accord to the National Treatment goods of the other Party in accordance with article III of the GATT 1994, including its interpretative notes are incorporated into this Agreement and form an integral part thereof.
2. For purposes of paragraph 1, each Party shall accord to the goods of the other party treatment no less favourable than the most favourable treatment accorded by that Party to or similar goods directly competing substitute of national origin.
Section C. Tariffs
Article 3.04. Programme of Tariff Relief
1. From the entry into force of this Treaty, the parties undertake to ensure access to their respective markets through the final and total elimination of the tariff.
Customs import and any other duty or charge, the trade of goods originating except those contained in annex 3.04.
2. Except as otherwise provided in this Treaty, this article is not intended to preclude a Party from maintaining or increasing a customs tariff as may be permitted in accordance with the provisions of the WTO Agreement or any other agreement which is part of the WTO.
3. Paragraph 1 does not prohibit a party from increasing a customs tariff to a level not exceeding the established in the schedule of tariff relief, when the Customs Tariff previously been unilaterally reduced to a level lower than that established in the schedule of tariff relief. During the process of tariff relief, the parties undertake to apply in their mutual trade of goods originating, the lesser of the customs duties resulting from a comparison between the established in accordance with the schedule of tariff relief and applied in accordance with article 1 of the GATT 1994.
4. At the request of any of the Parties, the Parties shall consult to consider accelerating the elimination of customs duties set out in the schedule of tariff relief.
5. Notwithstanding paragraphs 1 to 4, any Party may maintain or adopt or modify a customs tariff on goods excluded from the tariff relief program contained in annex 3.04.
Article 3.05. Temporary Admission of Goods
1. Each Party shall allow the temporary admission of goods free of customs tariff, including:
a) Professional equipment necessary for carrying out the activity, trade or profession of a business person who meets the requirements for temporary entry under the provisions of Chapter 14 (temporary entry for business persons);
b) Equipment for the press or for transmission to air of radio or television broadcasting and cinematographic equipment;
c) Admitted for sports purposes and goods intended for display or demonstration;
And
d) Commercial Samples and Advertising films;
Admitted to the territory of the other party, regardless of their origin and that in the territory of the Party are available directly or similar goods competing substitutable.
2. Except as otherwise provided in this Treaty, any party subject the temporary admission free of customs tariff of a good of the type indicated in paragraph 1 (a), (b) or (c), other than the following conditions:
a) Where the goods are accepted by a national or resident of the other party who seeks temporary entry;
b) Where the goods are used exclusively by the visitor or person under the personal supervision in the performance of its activity, trade or profession;
c) That the goods not be sold or leased while in its territory;
d) If the goods to be accompanied by a bond not exceeding one hundred ten percent (110 percent of the charges that would otherwise due to his case by the final importation, or by another form of guarantee reimbursable at the time of the exportation of goods is not required, except that a bond for customs duties on goods originating whichever is;
e) Where the good be capable of identification when outside its territory;
f) Where the goods leave together with that person or within a reasonably time period corresponding to the purpose of the temporary admission; and
g) If the goods to be admitted in quantity no greater than is reasonable for its intended use it.
3. Except as otherwise provided in this Treaty, any party subject the temporary admission free of customs tariff of a good of the type indicated in paragraph 1 (d), other than the following conditions:
a) Where the goods are allowed only for purposes of live orders for goods of the other party, regardless of their origin, or services provided from the territory of the other party;
b) Where the goods are not intended for sale or lease, and is used only for demonstration or exhibition while in its territory;
c) Where the good be capable of identification when outside its territory;
d) Where the goods leave within a period reasonably corresponding to the purpose of the temporary admission; and
e) If the goods to be admitted in quantity no greater than is reasonable in agreement with the use to which it is intended.
4. Where a good is temporarily admitted free of customs tariff in accordance with paragraph 1 fails to comply with any of the conditions that imposes a Party under paragraphs 2 and 3, that party may apply:
a) The customs duty and any other charge that would be due to the final importation of the same; and
b) Any criminal, civil or administrative penalties that the circumstances warrant.
5. Subject to the provisions of Chapters 10 (investment) and eleven (cross-border trade in services):
a) Each Party shall permit containers and vehicles used in international transport which have entered into its territory from the other party to its territory on any exit route that is reasonably related to the economic and prompt departure of such vehicle or container;
b) A Party may require any bond or impose any penalty or charge solely by reason of the entry of a vehicle or container is different from that of departure;
c) No party will condition the release of any obligation, including a bond that has applied for the entry of a vehicle or container into its territory on its exit is made by a port in particular; and
d) No party may require that the carrier bringing a vehicle or container into its territory from the territory of the other party, is the same as that in the territory of the other party.
6. For purposes of paragraph 5: means a vehicle, trailer truck, tractocamión 1.tractor, trailer or unit or locomotive freight railroad or other equipment.
Article 3.06. Import Free of Customs Tariff for Commercial Samples of Negligible Value or No Commercial Value and Printed Materials Advertising
Each Party shall authorize the free customs tariff for Importation of Commercial Samples of negligible value or no commercial value and printed materials advertising, regardless of their origin, if imported from the territory of the other party, but may require that:
a) Such commercial samples be imported solely for purposes of live orders for goods or services of the other party, regardless of their origin, or services are supplied from the territory of the other party or of a non- Party; or
b) Such advertising materials be imported in printed packets containing no more than one copy of each form, and that neither the materials nor packets form part of a larger consignment.
Article 3.07. Re-imported Goods after Having Been Repaired or Altered
1. No party may apply a customs duty to a good regardless of their origin, which is being re-imported into its territory after being or having left temporarily exported to the territory of the other party to be repaired or altered, regardless of whether such repair or alteration could be performed in its territory.
2. No party may apply the customs duties on goods, regardless of their origin, are admitted temporarily from the territory of the other party to be repaired or altered.
3. Both the reimportation referred to in paragraph 1 as temporary admission referred to in paragraph 2 shall be made within the time period established in the respective laws of the Parties.
Article 3.08. Customs Valuation
1. The Customs Valuation Agreement shall govern the customs valuation rules applied by the parties in their reciprocal trade in the manner in which the parties have taken.
2. Notwithstanding paragraph 1, the Central American countries that have negotiated reservations to the WTO in light of annex III to the Agreement on Implementation of article VII of GATT 1994, after two years (2) of the entry into force of this Treaty, shall apply between the parties fully the Customs Valuation Agreement, including its Annexes and notes, and shall determine the value of the goods on the basis of minimum values.
Article 3.09. Restrictions on Domestic Support and Programmes to Support Exports
The Parties shall establish the treatment to domestic support for agricultural goods and to support programmes for exports in annex 3.09
Article 3.10. Restrictions on Imports and Exports
1. The parties undertake to complete immediately and eliminate non-tariff barriers, with the exception of the Rights of the Parties in accordance with Articles XX and XXI of the GATT 1994 and those covered in chapter 8 (sanitary and phytosanitary medidas.3 - 9) and chapter 9 (measures of standardization, metrology and authorization procedures).
2. Except as otherwise provided in this Treaty, no Party may adopt or maintain a prohibition or restriction on the importation of any goods of the other party or on the exportation for sale or export of any good destined for the Territory of the other party, except as provided in article XI of the GATT 1994, including its interpretative notes. To this end article XI of GATT 1994 and its interpretative notes are incorporated into this Agreement and form an integral part thereof.
3. The parties understand that the rights and obligations of GATT 1994 as incorporated in paragraph 2, prohibit in any circumstances in which any other form of restriction is, the requirements of export prices and except as permitted for the Implementation of Resolutions and Commitments anti-dumping and countervailing measures, the requirements of import prices.
4. In cases where a party adopts or maintains a prohibition or restriction on the importation or exportation of goods to non- or a party, no provision of this Treaty.
a) Shall be construed as to prevent the other party limiting or prohibiting the importation of the goods in the country no party from the territory of the other party; or
b) To allow the requiring party as a condition of the export of goods to the territory of the other party, which shall not be re-exported non-party to the country, directly or indirectly, without being consumed in the territory of that other party.
5. In the event that a party adopts or maintains a prohibition or restriction on the importation of goods of a non- Party, at the request of the other party the Parties shall consult with a view to avoiding undue interference with or distortion pricing mechanisms, marketing and distribution in that other party.
6. Paragraphs 1 through 4 shall not apply to the measures set out in annex 3.10 (6).
Article 3.11. Rights of Customs Formalities and Consular Rights
1. From the entry into force of this agreement, either of the Parties to apply the right of existing customs formalities, or adopt new customs formalities on goods originating, except as provided in annex 3.11 (1).
2. Neither party will consular fees or charges or require consular formalities on goods originating from the entry into force of this Treaty, except as provided in annex 3.11 (2).
Article 3.12. Geographical Indications and Designations of Origin
1. Each Party shall recognize and protect the geographical indications and designations of origin of the other Party in accordance with this article.
2. Neither Party shall permit the import, manufacture or sale of goods using a geographical indication or designation of origin in the other party unless it has been drawn up and certified in accordance with its applicable legislation to that good.
3. The provisions of paragraphs 1 and 2 shall only those effects in respect of geographical indications and designations of origin and protected by the legislation of the party claiming the protection and whose definition consistent with paragraph 1 of article 22 of the TRIPS Agreement. Furthermore, for access to the protection, each Party shall notify the other party of geographical indications or designations of origin that complying with the requirements set forth above, should be considered within the scope of protection.
4. The foregoing is without prejudice to the recognition that the parties may accord to geographical indications and designations of origin may lawfully homonymous non- belong to a party.
Article 3.13. Country of Origin
1. Each Party shall apply to the goods of the other party, where appropriate, legislation relating to their country of origin marking, pursuant to Article IX of GATT 1994. To this end article XI of GATT 1994 is incorporated into this Agreement and form an integral part thereof.
2. Each Party shall accord to the goods of the other party treatment no less favourable than that accorded to goods of a non- party with regard to the implementation of the rules relating to country of origin marking, pursuant to Article IX of GATT 1994.
3. Each Party shall ensure that the establishment and implementation of their respective laws on country of origin marking does not have the purpose or effect of creating unnecessary obstacles to trade between the parties.
Article 3.14. Export Taxes
Without prejudice to annex 3.14, no party shall adopt or maintain taxes, levies or charge on the export of goods from the territory of the other party, unless it is adopted or maintained on such goods, when it is intended for domestic consumption.
Article 3.15. International Obligations
A party, before taking a measure pursuant to an intergovernmental agreement on goods under subparagraph (h) of the article XX of GATT 1994, that may affect trade between the parties shall consult with the other party for avoiding nullification or impairment of a concession granted by the Party in accordance with article 3.04.
1. The parties establish a committee on trade in goods as set out in annex 3.16.
2. The Committee shall hear matters relating to this chapter and chapter 4 (rules of origin), chapter 5 (procedures) and the uniform customs regulations.
3. Without prejudice to article 1905 (2) (Committees), the Committee shall have the following functions:
a) The Committee refer to matters that impede access of goods to the territory of the Parties, in particular those related to the application of non-tariff measures; and
b) Promoting trade in goods through consultations between the parties
Studies and to modify the time-limits set out in annex 3.04 to accelerate tariff relief.
Committee on Trade in Goods the Committee on Trade in Goods established in article 3.16 shall consist of:
a) In the case of Costa Rica, a representative of the Ministry of Foreign Trade or its successor;
b) In the case of El Salvador, a representative of the Ministry of Economy, or its successor;
c) In the case of Guatemala, a representative of the Ministry of Economy, or its successor;
d) In the case of Honduras, a representative of the Ministry of Industry and Trade, or its successor;
e) In the case of Nicaragua, a representative of the Ministry of Development, Industry and Trade, or its successor; and
f) In the case of Panama, the Ministry of Trade and Industries through the Vice-Ministry of Foreign Trade or its successor.
Chapter 4. Rules of Origin
Article 4.01. Definitions
For purposes of this chapter:
CIF means the value of the good imported and includes the cost of insurance and freight up to the port or place of entry into the country of importation;
FOB means the value of the good free on board regardless of the means of transport to final site or the port of shipment abroad;
A good means material that is used in the transformation of production or another includes goods and components, inputs, raw materials, parts and components;
Indirect means a good material used in production, testing or inspection of another good but not physically incorporated into the Party; or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good including:
a) Fuel and energy; catalysts and solvents;
b) Aircraft, equipment and devices used for testing or inspecting the goods;
c) Gloves, spectacles, footwear, clothing, equipment and devices;
d) Tools and moulds, dies;
e) Spare parts and materials used in the maintenance of equipment and buildings;
f) Lubricants, fats, composite products and other products used in production, operation or maintenance of equipment and buildings;
g) Any other matters or product that is not incorporated into the good but properly documented a part of that production;
Fungible goods means interchangeable goods for commercial purposes and whose properties are essentially identical and which cannot be distinguished from one another for mere visual examination;
Goods wholly obtained or produced entirely in the territory of one or more Parties:
a) Minerals extracted in the territory of one or more of the Parties;
b) Vegetable products harvested in the territory of one or more of the Parties;
c) Live animals born and raised in the territory of one or more of the Parties;
d) Goods obtained from hunting or fishing in the territory of one or more of the Parties;
e) Fish, crustaceans and other marine species obtained from the sea outside the territorial waters and the maritime areas where the parties exercise jurisdiction, either by vessels registered or recorded with a party and carry the flag of the party or rented vessels by firms established in the territory of a party;
f) Goods produced on board ships from the factory goods identified in subparagraph (e) provided such factory ships are registered or recorded in a party and carry the flag of that Party factory ships or leased by a company established in the territory of a party;
g) Goods extracted from the seabed beneath the seabed or outside the territorial waters, by a party or a person of a Party provided that the Party has rights to exploit such seabed subsoil; or
h) Waste and scrap derived from:
i) The production in the territory of one or more Parties; or
ii) Used goods collected in the territory of one or more parties, provided that such goods are only for the recovery of raw materials; or
i) Goods produced in the territory of one or more of the Parties exclusively from goods referred to in subparagraphs (a) to (h) or from their derivatives, at any stage of production;
Generally accepted accounting principles means the principles used in the territory of each Party which confer substantial authoritative support with respect to the recording of income, expenditure, assets and liabilities involved in information and the preparation of financial statements. These indicators may be broad guidelines of general application as well as those standards and practices usually employed in the accounting procedures;
Production: the cultivation, production, harvesting, the birth and upbringing, fishing, hunting, processing, manufacture or assembly of goods;
Value shall be: the value of a good or a material, under the Rules of the Customs Valuation Agreement;
The transaction value of a good means the price actually paid or payable for a good with respect to a transaction of the producer of the good in accordance with the principles of article 1 of the Customs Valuation Agreement, adjusted in accordance with the principles of paragraphs 1, 3 and 4 of Article 8 of the same without considering that the good is sold for export. For the purposes of this definition, the seller referred to in the agreement on customs valuation shall be the producer of the goods; and
The transaction value of a material means the price actually paid or payable for a material with respect to a transaction of the producer of the good in accordance with the principles of article 1 of the Customs Valuation Agreement, adjusted in accordance with the principles of paragraphs 1, 3 and 4 of Article 8 of the same without considering that the material is sold for export. For the purposes of this definition, the seller referred to in the agreement on customs valuation shall be the supplier of the material and the buyer referred to in the agreement on customs valuation shall be the producer of the goods.
Article 4.02. Instruments of Application and Interpretation
1. For purposes of this chapter:
a) The Harmonized System shall be the basis for the tariff classification of goods; and
b) The principles and norms of the Customs Valuation Agreement shall be used for the determination of value of a good or a material.
2. For purposes of this chapter, in applying the Agreement on customs valuation to determine the origin of a good:
a) The principles and norms of the Customs Valuation Agreement shall apply to domestic transactions with such modifications as circumstances require, as would apply to international standards; and
b) The provisions of this chapter shall prevail over the customs valuation agreement to the extent of the inconsistency.
Article 4.03. Goods Originating
1. Except as otherwise provided in this chapter shall be regarded as originating goods when:
a) Is wholly obtained or produced entirely in the territory of one or more of the Parties;
b) Is produced in the territory of one or more of the Parties exclusively from materials that qualify as originating under this chapter;
c) Is produced in the territory of one or more of the Parties from non-originating materials that conform to a change in tariff classification, a regional value content or other
Requirements as specified in annex 4.03 and the good complies with the other applicable provisions of this chapter; or
d) Is produced in the territory of one or more of the Parties but one or more of the non-originating materials used in the production of the good does not satisfy a change in tariff classification because: