(c) the exchange of professional, scientific and technical information related t o customs legislation, regulations and procedures;
(d) the exchange of information on new technologies, methods and procedures in the application of customs legislation; and
(e) cooperation in the areas of research, development and testing of new customs procedures.
Article 5.6. Applications
1. Requests for assistance under this Chapter shall be addressed directly to the requested Party by the requesting Party, in writing or by electronic means, and accompanied by the necessary documents. The requested Party may request written confirmation of electronic requests.
2. When a request is urgent, it may also be made verbally. Such a request must be confirmed in writing or electronically as soon as possible. As long as the written confirmation has not been received, fulfillment of the request may be suspended.
3. Requests made pursuant to paragraph | shall include the following details:
(a) the administrative unit, the name, signature and position of the official making the request;
(b) the information requested and the reason for the request;
(c) a brief description of the subject matter, the legal elements and the nature of the customs procedure;
(d) the names, addresses, identification document or any other known and relevant information of the persons to whom the request relates; and
(e) all necessary information available to identify the goods or the customs declaration related to the application.
4. The information referred to in this Chapter shall be communicated to the officials specially designated for this purpose by each competent authority. To this end, each Party shall provide a list of designated officials to the competent authority of the other Party.
5. The requesting Party shall be in a position to provide the same assistance if requested to do so.
Article 5.7. Execution of Applications
1. A request for assistance shall be executed as soon as possible taking into consideration the available resources of the requested Party. A complete response to the request for assistance shall be provided within ninety (90) days after receipt of the written request.
2. Upon request, the requested Party shall conduct an investigation, in accordance with its national legislation, to obtain information related to customs offenses or infringements in international trade operations occurring in the territory of one of the Parties, and shall provide the requesting Party with the results of such investigation and all related information it deems relevant.
3. If the requested information is available in electronic form, the requested Party may provide it by electronic means to the requesting Party, unless the requesting Party has requested otherwise.
4. If a request made by any of the competent authorities requires compliance with a certain procedure, such procedure shall be followed in accordance with the national legislation and administrative provisions of the requested Party.
5. If the requested Party does not have the requested information, it shall, within the limits of its domestic law and available resources, exhaust all possibilities and make every effort, as provided in paragraph 1.
Article 5.8. Archives, Documents and other Materials
1. Upon request, the requested Party may certify copies of the documents requested, if it is unable to provide the originals when its national legislation prevents it from doing so.
2. Any information to be exchanged under this Chapter may be accompanied by additional information that is relevant to its interpretation or use.
Article 5.9. Use of Information
Information, documents and other materials received under this Chapter shall be used only for the purposes set forth in this Chapter, and subject to such restrictions as may be established by the requested Party, consistent with the provisions of this Chapter.
Article 5.10. Confidentiality
1. Information, documents and other materials obtained by the requesting Party inthe cou rseo f mutual assistance under this Chapter shall be treated as confidential, and in this case, shall be accorded the same protection with respect to confidentiality that applies to the same type of information, documents, and other materials in the territory of the requesting Party.
2. Such information shall be used or disclosed only for the purposes set forth in this Chapter, including in those cases in which it is required within the framework of administrative, judicial or investigative proceedings carried out by the competent authority or whoever corresponds. The information may be used or disclosed for other purposes or by other authorities, only in the event that the requested Party expressly authorizes it in writing.
Article 5.11. Costs
1. The competent authorities shall waive any claim for reimbursement of costs incurred in executing the requests provided for in this chapter, except for expenses and allowances paid to experts, which shall be borne by the requesting Party.
2. If expenses of a substantial or extraordinary nature are necessary to execute the application, the competent authorities shall consult to determine the terms and conditions under which the application will be executed, as well as the manner in which the expenses will be borne.
Article 5.12. Exception from the Obligation to Provide Assistance
1. In cases where, in the opinion of the requested Party, assistance requested under this Agreement would infringe its national sovereignty, public order, security or other substantial national interests, or violate legally protected trade secrets in its territory, such assistance may be refused or may be provided subject to certain conditions.
2. If the requesting Party is unable to comply with a similar request that the requested Party may make, it shall note that fact in its request. The requested Party may refuse to grant assistance.
3. The requested Party may postpone assistance on the ground that it will interfere with an investigation, prosecution or proceeding in progress. In such a case, the requested Party shall consult with the requesting Party to determine whether assistance may be granted under the terms and conditions set forth by the requested Party.
4. When assistance is denied or postponed, the reasons for the denial and postponement shall be provided.
Article 5.13. Process of Verification of Compliance Y Dispute Resolution Dispute Resolution
1. The competent authorities shall communicate directly and identify points of contact in order to address issues regarding the administration, implementation and enforcement of this Chapter. For such purposes, the Technical Committee for Cooperation and Mutual Assistance in Customs Matters is established, which shall be composed of two (2) representatives of each of the competent authorities, appointed by their respective superior bodies and shall meet in regular session at least two (2) times a year and in extraordinary session as often as necessary, at the request of any of the Parties.
2. The Technical Committee shall have, among others, the following functions:
(a) to ensure effective compliance with the provisions of this Chapter.
(b) prepare analyses and reports for the knowledge and approval of the higher bodies of the competent authorities.
(c) propose more detailed agreements to the higher bodies of the competent authorities, within the framework of this Treaty, to facilitate its implementation and compliance.
(d) propose to the superior bodies of the competent authorities mechanisms and procedures to facilitate the implementation and compliance with this Agreement, with a view to strengthening bilateral customs policy; and
(e) such other duties as may be entrusted to it by the higher bodies of the competent authorities by mutual agreement.
3. For purposes of the application of the dispute resolution mechanism, if a direct solution is not found in accordance with paragraphs 1 and 2, the superior bodies of the competent authorities, shall resolve issues arising from the interpretation, implementation and enforcement of the Chapter through comprehensive consultations, with the aim of finding a mutually satisfactory solution, within a period of thirty (30) days, for the benefit of the tax interest.
Article 5.14. Definitions
For the purposes of this Chapter:
competent authority means:
(a) in the case of Panama, the National Customs Authority and the Ministry of Commerce and Industry, according to their competencies; and
(b) In the case of Peru, the National Superintendency of Tax Administration (SUNAT) and the Ministry of Foreign Trade and Tourism (MINCETUR), according to their competencies, or their successors;
Customs offence or infringement means any breach ora tt e mp te d breach of the customs legislation of each Party;
information means documents, reports or other communications in any format, including electronic, as well as certified or authenticated copies thereof;
customs legislation means any legal provision administered, applied or enforced by the competent authorities of each Party and/or regulating the exit, entry or transit of goods in all or part of its territory;
Requested Party means the competent authority from which cooperation is requested or assistance; and
Requesting Party means the competent authority requesting cooperation or assistance.
Chapter 6. Sanitary and Phytosanitary Measures
Article 6.1. Scope of Application
This Chapter applies to all sanitary and phytosanitary measures that may directly or indirectly affect trade between the Parties, including food safety, the exchange of animals, animal products and by-products, plants, plant products and by-products in accordance with the WTO SPS Agreement, the Codex Alimentarius Commission, the World Organization for Animal Health (hereinafter OIE) and the International Plant Protection Convention (hereinafter IPPC).
Article 6.2. Objectives
The objectives of this Chapter are: to protect human, animal and plant life and health in the territories of the Parties, to facilitate and increase trade between the Parties by addressing and resolving problems arising from the application of sanitary and phytosanitary measures, to collaborate in the further implementation of the WTO SPS Agreement and to create a Committee to address in a transparent manner issues related to sanitary and phytosanitary measures and to promote the continuous improvement of the sanitary and phytosanitary situation of the Parties.
Article 6.3. Reaffirmation of WTO SPS Agreement
The Parties reaffirm their existing rights and obligations under the WTO SPS Agreement.
Article 6.4. Rights and Obligations of the Parties
1. The Parties may adopt, maintain or apply their sanitary or phytosanitary measures to achieve an appropriate level of sanitary or phytosanitary protection provided that they are based on scientific principles.
2. The Parties may establish, apply or maintain sanitary or phytosanitary measures with a higher level of protection than that which would be achieved by the application ofa measure based on an international standard, guideline or recommendation, provided that there is scientific justification for doing so.
3. The Parties shall ensure that their sanitary and phytosanitary measures do not constitute a disguised restriction on trade or create unnecessary barriers to trade.
Article 6.5. Equivalence
1. The recognition of equivalence of sanitary and phytosanitary measures may be given considering the standards, guidelines and recommendations established by the competent international organizations and the decisions adopted by the Committee on Sanitary and Phytosanitary Measures of the WTO on the matter.
2. A Party shall accept as equivalent the sanitary or phytosanitary measures of the other Party, even if they differ from its own, provided that they are shown to achieve the other Party's appropriate level of protection, in which case reasonable access for inspections, tests and other necessary procedures shall be provided.
3. The Parties, in the Committee established in Article 6.11, shall define the mechanisms for evaluating and, if necessary, accepting the equivalence of sanitary and phytosanitary measures.
Article 6.6. Risk Assessment and Determination of the Appropriate Level of SPS Protection
1. The sanitary and phytosanitary measures applied by the Parties shall be based on an assessment appropriate to the circumstances of the risks to human, animal or plant life or health, including products and by-products, taking into account the relevant standards, guidelines and recommendations of the competent international organizations.
2. The establishment of appropriate levels of protection shall take into account the objective of protecting human, animal and plant health, while facilitating trade and avoiding arbitrary or unjustified distinctions that could become disguised restrictions.
3. The Parties shall provide each other with the necessary facilities for the evaluation, when required, of sanitary and phytosanitary services, based on the guidelines and recommendations of international organizations or other procedures mutually agreed upon by the Parties.
4. In this regard, the Parties agree to instruct the Committee established in Article 6.11 to determine the actions and procedures to expedite the process of sanitary and phytosanitary risk assessment.
Article 6.7. Adaptation to Regional Conditions with Inclusion of Pest- or Disease Free Areas and Areas of Low Pest or Disease Prevalence
1. In assessing the sanitary or phytosanitary characteristics of a region, the Parties shall take into account, inter alia, the level of prevalence of specific diseases or pests, the existence of eradication or control programs, and appropriate criteria or guidelines that may be developed by competent international organizations.
2. Parties shall recognize pest- or disease-free areas and areas of low pest or disease prevalence in accordance with the WTO SPS Agreement, OTE and IPPC recommendations and/or guidelines.
3. In determining such areas, the Parties shall consider factors such as geographic location, ecosystems, epidemiological surveillance, and effectiveness of sanitary and phytosanitary controls, among other technically and scientifically justified considerations, which provide the necessary evidence to objectively demonstrate to the other Party that such areas are and are likely to remain pest- or disease-free areas or areas of low prevalence. To this end, reasonable access shall be provided, upon request to the other Party, for inspection, testing and other relevant procedures.
4. The Parties recognize the recommendations expressed in the standards on compartmentalization established by the OIE.
5. The Committee established in Article 6.11 shall develop an appropriate procedure for the recognition of pest or disease free areas and areas of low prevalence, taking into account international standards, guidelines or recommendations. 6. If a Party does not recognize the determination of pest- or disease-free areas or areas of low pest or disease prevalence made by the other Party, it shall justify the technical and scientific reasons for such refusal in a timely manner.
Article 6.8. Inspection, Control and Approval
The Parties shall establish inspection, control and approval procedures taking into consideration Article 8 and Annex C of the WTO SPS Agreement.
Article 6.9. Transparency
1. The Parties shall apply sanitary and phytosanitary measures in a transparent manner. For these purposes, the Parties shall notify each other of such measures in accordance with Annex B of the WTO SPS Agreement.
2. Additionally, the Parties shall notify each other:
(a) the application of emergency measures or modification of measures already in force within a period not exceeding three (3) days, in accordance with the provisions of Annex B of the WTO SPS Agreement, as well as health alert situations regarding the control of food traded between the Parties, in which a risk to human health associated with its consumption is detected, in accordance with the corresponding sanitary standard of the Codex Alimentarius in force at the time;
(b) situations of non-compliance with measures detected in the certifications of export products subject to the application of sanitary and phytosanitary measures, including as much information as possible, as well as the reasons for their rejection;
(c) cases of exotic or unusually occurring pests or diseases; and
(d) updated information at the request of a Party, of the requirements that apply to the importation of specific products, and to report on the status of the processes and measures in process, with respect to requests for access of animal, plant, forestry, fishery and other related products to the SPS Agreement of the WTO by the exporting Party.
3. Likewise, the Parties shall make their best efforts to improve mutual understanding of sanitary and phytosanitary measures and their application, and shall exchange information on matters related to the development and application of sanitary and phytosanitary measures, which affect or may affect trade between the Parties, with a view to minimizing their negative effects on trade.
4. Notifications shall be made in writing to the contact points established in accordance with the WTO SPS Agreement. Written notification shall be understood to mean notifications by post, fax or e-mail.
Article 6.10. Cooperation and Technical Assistance
1. The Parties agree to cooperate and provide each other with the necessary technical assistance for the implementation of this Chapter.
2. The Parties shall develop through the Committee established in Article 6.11 a work program, including the identification of cooperation and technical assistance needs to establish and/or strengthen the capacity of the Parties in human health, animal health, plant health and food safety of common interest.
Article 6.11. Committee on Sanitary and Phytosanitary Measures
1. The Parties establish a Committee on Sanitary and Phytosanitary Measures (hereinafter the Committee), composed of representatives of each Party with responsibilities in this area, in accordance with Annex 6.11 (Committee on Sanitary and Phytosanitary Measures), as a forum to ensure and monitor the implementation and administration of this Chapter, as well as to address and attempt to resolve problems that arise in trade in goods subject to the application of sanitary and phytosanitary measures.
2. The Committee may establish working groups on sanitary and phytosanitary matters as it deems appropriate.
3. The functions of the Committee shall include:
(a) monitor the implementation and administration of this Chapter;
(b) report to the Commission on the implementation and administration of this Chapter, as appropriate;
(c) serve as a forum to consult, discuss and attempt to resolve problems related to the development or application of sanitary or phytosanitary measures that affect or may affect trade between the Parties;
(d) contribute to trade facilitation through the timely handling of consultations on problems related to the implementation of this Chapter;
(e) improve any present or future relationship between the offices responsible for the application of sanitary and phytosanitary measures of the Parties;
(f) contribute to mutual understanding of the Parties' sanitary and phytosanitary measures, their implementation processes, and related domestic regulations;
(g) detect and promote cooperation, technical assistance, training and exchange of information on sanitary and phytosanitary measures;
(h) Establish procedures for the recognition of pest or disease free zones, areas or compartments;
(i) define the mechanisms or procedures for the recognition of equivalence of sanitary and phytosanitary measures, as well as determine the procedures and deadlines for risk evaluations in an agile and transparent manner;
(j) consult on the position of the Parties on issues to be discussed at meetings of the WTO Committee on Sanitary and Phytosanitary Measures, Codex Alimentarius committees and other fora to which the Parties are party; and
(k) to deal with any other matter related to this Chapter.
4. Unless otherwise agreed by the Parties, the Committee shall meet at least once (1) a year, on the date and according to the agenda previously agreed upon by the Parties. The Parties shall determine those cases in which extraordinary meetings may be held.
5. The meetings may be held by any means agreed upon by the Parties. When they are face-to-face, they shall be held alternately in the territory of each Party, and it shall be the responsibility of the host Party to organize the meeting. The first meeting of the Committee shall be held no later than one (1) year after the date of entry into force of this Treaty.
6. Unless otherwise agreed by the Parties, the Committee shall be of a permanent nature and shall develop its working rules.
7. All decisions of the Committee shall be made by mutual agreement.
Article 6.12. Settlement of Disputes
Once the consultation procedure has been exhausted in accordance with Article 6.11.3 (c), a Party that is not satisfied with the outcome of such consultations may have recourse to the dispute settlement procedure set forth in Chapter 18 (Dispute Settlement).
Article 6.13. Definitions
For the purposes of this Chapter, the definitions and glossaries of Annex A of the WTO SPS Agreement and of the international reference bodies shall apply.
Chapter 7. Technical Barriers to Trade
Article 7.1. Scope of Application
1. This Chapter applies to the preparation, adoption and application of all standards, technical regulations and conformity assessment procedures, including those relating to metrology, of each Party that may directly or indirectly affect trade in goods.
2. Notwithstanding the provisions of paragraph 1, this Chapter does not apply to:
(a) sanitary and phytosanitary measures, which shall be covered by Chapter 6 (Sanitary and Phytosanitary Measures); and
(b) purchasing specifications established by governmental institutions for the production or consumption needs of governmental institutions, which shall be governed by Chapter 10 (Government Procurement).
Article 7.2. Objectives
The objective of this Chapter is to facilitate and increase trade in goods by identifying, avoiding and eliminating unnecessary obstacles to trade between the Parties that may arise as a result of the preparation, adoption and application of technical regulations, standards and conformity assessment procedures, including those relating to metrology, and the promotion of joint cooperation between the Parties, within the terms of the WTO TBT Agreement.
Article 7.3. Reaffirmation of the WTO TBT Agreement
The Parties reaffirm their existing rights and obligations with respect to each other under the WTO 7BT Agreement, which are incorporated into this Chapter, mutatis mutandis.
Article 7.4. Trade Facilitation
1. The Parties shall intensify their joint work in the field of standards, technical regulations and conformity assessment procedures, with a view to facilitating trade between the Parties. In particular, the Parties shall seek to identify, develop and promote trade facilitating initiatives relating to standards, technical regulations and conformity assessment procedures that are appropriate to particular issues or sectors, taking into account the Parties' respective experience in other appropriate bilateral, regional or multilateral agreements.
2. The initiatives referred to in paragraph 1 may include cooperation on regulatory matters, such as convergence or harmonization with international standards, reliance on a supplier's declaration of conformity, recognition and acceptance of the results of conformity assessment procedures and the use of accreditation to qualify conformity assessment bodies, as well as cooperation through mutual recognition agreements.
3. When a Party detains at the port of entry a good originating in the territory of the other Party by virtue of a perceived non-compliance with a technical regulation, it shall immediately notify the importer of the reasons for the detention.
Article 7.5. Use of International Standards
1. Each Party shall use relevant international standards, guides and recommendations as provided for in Articles 2.4 and 5.4 of the WIO 7BT Agreement as _ the basis for its technical regulations and conformity assessment procedures.
2. In determining whether an international standard, guide or recommendation within the meaning of Article 2, Article 5 and Annex 3 of the WTO TBT Agreement exists, each Party shall apply the principles set out in the Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade (hereinafter WTO TBT Committee) since 1 January 1995, G/TBT/1/Rev.9, 08 September 2008 issued by the WTO TBT Committee.
3. Each Party shall encourage its national standardizing bodies to cooperate with the relevant national standardizing bodies of the other Party in international standardization activities. Such cooperation may be effected through the activities of the Parties in regional and international standardizing bodies of which the Parties are members.
Article 7.6. Technical Regulations
1. Each Party shall favorably consider accepting as equivalent the technical regulations of the other Party, even if they differ from its own, provided that it is satisfied that they adequately fulfill the legitimate objectives of its own technical regulations.
2. When a Party does not accept a technical regulation of the other Party as equivalent to one of its own, it shall, at the request of the other Party, explain the reasons for its decision.
3. At the request of a Party that has an interest in developing a technical regulation similar to the technical regulation of the other Party and to minimize duplication of costs, the other Party shall provide any available information, studies or other relevant documents on which it has based the development of that technical regulation, except for confidential information.
Article 7.7. Conformity Assessment
1. The Parties recognize that a wide range of mechanisms exist to facilitate the acceptance in the territory of one Party of the results of conformity assessment procedures carried out in the territory of the other Party, for example:
(a) the importing Party's reliance on a supplier's declaration of conformity;
(b) voluntary agreements between conformity assessment bodies in the territory of the Parties;
(c) agreements on mutual acceptance of the results of conformity assessment procedures with respect to specific regulations, carried out by bodies located in the territory of the other Party;
(d) accreditation procedures to qualify conformity assessment bodies;
(e) the designation of conformity assessment bodies; and
(f) the recognition by a Party of the results of conformity assessment procedures carried out in the territory of the other Party.
The Parties shall intensify the exchange of information in relation to these and similar mechanisms to facilitate the acceptance of results of conformity assessment procedures.
2. In the event that a Party does not accept the results of a conformity assessment procedure carried out in the territory of the other Party, the latter shall, at the request of that other Party, explain the reasons for its decision.