(d) cooperative activities financed, as appropriate, by private institutions, foundations, or public international organizations, including through ongoing programs.
11. Each Party shall facilitate, in accordance with its laws and regulations, duty free entry for goods including materials and equipment provided pursuant to cooperative activities provided for under the Agreement.
Public Participation
12. In identifying areas for environmental cooperation and capacity building, and in carrying out cooperative activities, each Party shall consider when appropriate the views of its nationals.
Part Eight. Administrative and Institutional Provisions
Chapter 20. Transparency
Section A. Transparency
Article 20.01. Contact Points
1. Each Party shall designate, within 60 days of the date of entry into force of this Agreement, a contact point to facilitate communications between the Parties on any matter covered by this Agreement.
2. On the request of the other Party, the contact point shall identify the office or official responsible for the matter and assist, as necessary, in facilitating communication with the requesting Party.
Article 20.02. Publication
1. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings of general application respecting any matter covered by this Agreement are promptly published or otherwise made available in such a manner as to enable interested persons and Parties (1) to become acquainted with them.
2. To the extent possible, each Party shall:
(a) publish in advance any such measure that it proposes to adopt; and
(b) provide interested persons and Parties a reasonable opportunity to comment on such proposed measures.
Article 20.03. Notification and Provision of Information
1. To the maximum extent possible, a Party shall notify the other Party with an interest in the matter of any proposed or actual measure that the Party considers might materially affect the operation of this Agreement or otherwise substantially affect that other Party's interests under this Agreement.
2. On request of the other Party, a Party shall promptly provide information and respond to questions pertaining to any actual or proposed measure, whether or not that other Party has been previously notified of that measure.
3. Any notification or information provided under this Article shall be without prejudice as to whether the measure is consistent with this Agreement.
Article 20.04. Administrative Proceedings
With a view to administering in a consistent, impartial, and reasonable manner all measures of general application affecting matters covered by this Agreement, each Party shall ensure that in its administrative proceedings applying measures referred to in Article 20.02 to particular persons, goods, or services of the other Party in specific cases that:
(a) wherever possible, persons of the other Party that are directly affected by a proceeding are provided reasonable notice, in accordance with domestic procedures, when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated, and a general description of any issues in controversy;
(b) such persons are afforded a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action, when time, the nature of the proceeding, and the public interest permit; and
(c) its procedures are in accordance with domestic law.
Article 20.05. Review and Appeal
1. Each Party shall establish or maintain judicial or administrative tribunals or procedures for the purpose of the prompt review and, where warranted, correction of final administrative actions regarding matters covered by this Agreement. Such tribunals shall be impartial and independent of the office or authority entrusted with administrative enforcement and shall not have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceeding are provided with the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions of record or, where required by domestic law, the record compiled by the administrative authority.
3. Each Party shall ensure, subject to appeal or further review as provided in its domestic law, that such decisions shall be implemented by, and shall govern the practice of, the office or authority with respect to the administrative action at issue.
Article 20.06. Definitions
For purposes of this Section:
administrative ruling of general application means an administrative ruling or interpretation that applies to all persons and fact situations that fall generally within its ambit and that establishes a norm of conduct, but does not include:
(a) a determination or ruling made in an administrative proceeding that applies to a particular person, good, or service of another Party in a specific case; or
(b) ar ruling that adjudicates with respect to a particular act or practice.
Section B. Anti-Corruption
Article 20.07. Statement of Principle
The Parties affirm their resolve to eliminate bribery and corruption in international trade and investment.
Article 20.08. Anti-Corruption Measures
1. Each Party shall adopt or maintain the necessary legislative or other measures to establish that it is a criminal offense under its law, in matters affecting international trade or investment, for:
(a) a public official of that Party or a person who performs public functions for that Party intentionally to solicit or accept, directly or indirectly, any article of monetary value or other benefit, such as a favor, promise, or advantage, for himself or for another person, in exchange for any act or omission in the performance of his public functions;
(b) any person subject to the jurisdiction of that Party intentionally to offer or grant, directly or indirectly, to a public official of that Party or a person who performs public functions for that Party any article of monetary value or other benefit, such as a favor, promise, or advantage, for himself or for another person, in exchange for any act or omission in the performance of his public functions;
(c) any person subject to the jurisdiction of that Party intentionally to offer, promise, or give any undue pecuniary or other advantage, directly or indirectly, to a foreign official, for that official or for another person, in order that the official act or refrain from acting in relation to the performance of official duties, in order to obtain or retain business or other improper advantage in the conduct of international business; and
(d) any person subject to the jurisdiction of that Party to aid or abet, or to conspire in, the commission of any of the offenses described in subparagraphs (a) through (c).
2. Each Party shall adopt or maintain appropriate criminal penalties and procedures to enforce the measures set out in paragraph 1.
3. In the event that, under the legal system of a Party, criminal responsibility is not applicable to enterprises, that Party shall ensure that enterprises shall be subject to effective, proportionate, and dissuasive non-criminal sanctions, including monetary sanctions, for any of the offenses described in paragraph 1.
4. Each Party shall endeavor to adopt or maintain appropriate measures to protect persons who, in good faith, report acts of bribery or corruption described in paragraph 1.
Article 20.09. Cooperation In International Fora
The Parties recognize the importance of regional and multilateral initiatives to eliminate bribery and corruption in international trade and investment. The Parties shall work jointly to encourage and support appropriate initiatives in relevant international fora.
Article 20.10. Definitions
For purposes of this Section:
act or refrain from acting in relation to the performance of official duties includes any use of the official's position, whether or not within the official's authorized competence;
foreign official means any person holding a legislative, administrative, or judicial office of a foreign country, at any level of government, whether appointed or elected; any person exercising a public function for a foreign country at any level of government, including for a public agency or public enterprise; and any official or agent of a public international organization;
public function means any temporary or permanent, paid or honorary activity, performed by a natural person in the name of a Party or in the service of a Party, such as procurement, at any level of government; and
public official means any official or employee of a Party at all levels of the government, whether appointed or elected.
Chapter 21. Administration of the Agreement
Article 21.01. The Free Trade Commission
1. The Parties hereby establish the Free Trade Commission, comprising cabinet-level representatives of the Parties, as set out in Annex 21.01, or their designees.
2. The Commission shall:
(a) supervise the implementation of this Agreement;
(b) oversee the further elaboration of this Agreement;
(c) seek to resolve disputes that may arise regarding the interpretation or application of this Agreement;
(d) supervise the work of all committees and working groups established under this Agreement; and
(e) consider any other matter that may affect the operation of this Agreement.
3. The Commission may:
(a) establish and delegate responsibilities to committees and working groups;
(b) modify in fulfillment of the Agreement's objectives:
(i) the Schedules attached to Annex 3.03 (Customs Tariff Elimination Schedule), by accelerating tariff elimination; and
(ii) the rules of origin established in Annex 4.02 (Specific Rules of Origin);
(c) Issue interpretations of the provisions of this Agreement; (d) seek the advice of non-governmental persons or groups; and
(e) take such other action in the exercise of its functions as the Parties may agree.
4. Each Party shall implement, in accordance with its applicable legal procedures, any modification referred to in subparagraph 3(b) within such period as the Parties may agree.
5. The Commission shall establish its rules and procedures. All decisions of the Commission shall be taken by mutual agreement, unless the Commission otherwise decides.
6. The Commission shall convene at least once a year in regular session, unless the Commission otherwise decides. Regular sessions of the Commission shall be chaired successively by each Party.
Article 21.02. Free Trade Agreement Coordinators
1. Each Party shall appoint a free trade agreement coordinator, as set out in Annex 21.02.
2. The coordinators shall work jointly to develop agendas and make other preparations for Commission meetings and shall follow-up on Commission decisions, as appropriate.
Article 21.03. Administration of Dispute Settlement Proceedings
1. Each Party shall:
(a) designate an office that shall provide administrative assistance to the panels established under Chapter 22 (Dispute Settlement) and perform such other functions as the Commission may direct; and
(b) notify the Commission of the location of its designated office.
2. Each Party shall be responsible for:
(a) the operation and costs of its designated office; and
(b) the remuneration and payment of expenses of panelists and experts, as set out in Annex 21.03.
Annex 21.01. The Free Trade Commission
The Free Trade Commission shall be composed of:
(a) in the case of the Republic of Nicaragua, the Ministro de Fomento, Industria y Comercio; and
(b) in the case of Republic of China (Taiwan), the Minister of Economic Affair,
or their successors.
Annex 21.02. Free Trade Agreement Coordinators
The free trade agreement coordinators shall be composed of: (a) _ in the case of the Republic of Nicaragua, the Director General de Comercio Exterior del Ministerio de Fomento, Industria y Comercio (MIFIC); and
(b) in the case of Republic of China (Taiwan), the Director General of the Bureau of Foreign Trade, Ministry of Economic Affairs,
or their successors.
Annex 21.03. Remuneration and Payment of Expenses
1. The Commission shall establish the amounts of remuneration and expenses that will be paid to panelists and experts.
2. The remuneration of panelists and their assistants, experts, their travel and lodging expenses, and all general expenses of panels shall be borne equally by the disputing Parties.
3. Each panelist and expert shall keep a record and render a final account of the person's time and expenses, and the panel shall keep a record and render a final account of all general expenses.
Chapter 22. Dispute Settlement
Section A. Dispute Settlement
Article 22.01. Cooperation
The Parties shall at all times endeavor to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation.
Article 22.02. Scope of Application
Except as otherwise provided in this Agreement, the dispute settlement provisions of this Chapter shall apply:
(a) with respect to the avoidance or settlement of all disputes between the Parties regarding the interpretation or application of this Agreement;
(b) wherever a Party considers that an actual or proposed measure of the other Party is or would be inconsistent with the obligations of this Agreement; or
(c) wherever a Party considers that an actual or proposed measure of the other Party causes or would cause nullification or impairment in the sense of Annex 22.02.
Article 22.03. Choice of Forum
1. Where a dispute regarding any matter arises under this Agreement and under the WTO Agreement, the complaining Party may select the forum in which to settle the dispute.
2. In any dispute referred to in paragraph 1 where the Party complained against claims that its action is subject to Article 1.04 (Relation to Other International Agreement in Environmental and Conservation) and requests in writing that the matter be considered under this Agreement, the complaining Party may, in respect of that matter, thereafter have recourse to dispute settlement procedures solely under this Agreement.
3. Where a Party has requested the establishment of an arbitral group under Article 22.07. or has requested the establishment of a arbitral group under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO Agreement, the forum chosen shall be used to the exclusion of the other.
Article 22.04. Urgent Cases
1. In cases of urgency, the Parties and the arbitral groups shall make every effort to accelerate to the greatest extent the proceedings.
2. In cases of perishable agricultural goods, fish and fish products that are perishable:
(a) a Party may request in writing that the Commission meet, when an issue is not resolved in accordance with Article 22.05 within 15 days following the submission of the request for consultations; and
(b) the Party that has requested the intervention of the Commission, may request in writing the formation of an arbitral group when the issue has not been resolved within 15 days after the meeting of the Commission, or if the Commission has not met, within 15 days after submitting the request for such a meeting.
Article 22.05. Consultations
1. A Party may request in writing consultations to the other Party with respect to any actual or proposed measure or any other matter that it considers might affect the operation of this Agreement.
2. The Party shall deliver the request to the other Party, and shall set out the reasons for the request, including identification of the actual or proposed measure or other matter at issue and an indication of the legal basis for the complaint.
3. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of any matter through consultations under this Article or other consultative provisions of this Agreement. To this end, the Parties shall:
(a) provide sufficient information to enable a full examination of how the actual or proposed measure or other matter might affect the operation and application of this Agreement; and
(b) treat any confidential information exchanged in the course of consultations on the same basis as the Party providing the information.
4. In consultations under this Article, a Party may request to the other Party to make available personnel of its government agencies or other regulatory bodies who have expertise in the matter subject to consultations. (1)
Article 22.06. Commission - Good Offices, Conciliation, and Mediation
1. Any Party may request in writing a meeting of the Commission, if the Parties fail to resolve a matter pursuant to Article 22.05 within:
(a) 60 days of receipt of a request for consultations;
(b) 15 days of receipt of a request for consultations in matters of Urgent cases; described in Article 22.04.2; or
(c) such other period as both Parties may agree.
2. The Party shall deliver the request to the other Party, and shall set out the reasons for the request, including identification of the actual or proposed measure or other matter at issue and an indication of the legal basis for the complaint.
3. Unless it decides otherwise, the Commission shall convene within ten days of receipt of the request and shall endeavor to resolve the dispute promptly. The Commission may:
(a) call on such technical advisers or create such working groups or expert groups as it deems necessary;
(b) have recourse to good offices, conciliation, mediation, or such other dispute resolution procedures; or
(c) make recommendations;
as may assist the Parties to reach a mutually satisfactory resolution of the dispute.
Article 22.07. Request for Establishment of an Arbitration Group
1. If the Parties fail to resolve a matter within:
(a) 30 days after the Commission has convened pursuant to Article 22.06;
(b) 30 days after a Party has received a request for consultations under Article 4 in a matter regarding urgent cases, if the Commission has not convened pursuant to Article 22.04.2;
(c) 75 days after a Party has received a request for consultations under Article 22.05, if the Commission has not convened pursuant to Article 22.06.4; or
(d) such other period as the Parties may agree;
any Party that requested a meeting of the Commission with regard to the measure or other matter in accordance with Article 22.06 may request in writing the establishment of an arbitral group to consider the matter. The Party shall deliver the request to the other Party, and shall set out the reasons for the request, including identification of the measure or other matter at issue and an indication of the legal basis for the complaint sufficient to present the problem clearly.
2. An arbitral group shall be established within three days upon receipt of a request.
3. Unless otherwise agreed by the Parties, the arbitral group shall be established and perform its functions in a manner consistent with the provisions of this Chapter.
4. An arbitral group may not be established to review a proposed measure.
Article 22.08. Roster
1. The Parties shall establish within six months of the date of entry into force of this Agreement and maintain a roster of up to 20 individuals who are willing and able to serve as panelists. Unless the Parties otherwise agree, up to six members of the roster shall be nationals of each Party, and up to four members of the roster shall be selected from among individuals who are not nationals of any Party. The roster members shall be appointed by mutual agreement, and may be reappointed.
2. To meet the deadline referred to in paragraph 1, each Party shall: (1) by day 75, submit its nominees to the other Party; (2) by day 120, approve or reject the nominees of the other Party; and (3) by day 150, submit additional nominees in place of any nominees that the other Party has rejected. The Parties shall finalize the initial roster by day 180.
3. Once established, a roster shall remain in effect for a minimum of three years, and shall remain in effect thereafter until the Parties constitute a new roster. The Parties may appoint a replacement where a roster member is no longer available to serve.