(b) applied MFN tariff rates.
Article 2.23. Sub-Committee on Trade In Goods, Rules of Origin and Trade Facilitation
1. A Sub-Committee on Trade in Goods, Rules of Origin and Trade Facilitation (the Sub-Committee) is hereby established.
2. The mandate of the Sub-Committee is set out in Annex 2J (Mandate of the SubCommittee on Trade in Goods, Rules of Origin and Trade Facilitation).
Article 2.24. Classification of Goods and Transposition of Schedules
1. For the purposes of this Agreement, the classification of goods shall be governed by each Party’s respective tariff nomenclature in conformity with the Harmonized Commodity Description and Coding System (HS). In Annexes 2A, 2B, 2C, 2D and 2E, Appendix 2F-a (Product-Specific Rules) to Annex 2F (Rules of Origin) the version of the HS and the year shall be indicated.
2. Each Party shall ensure that the transposition of its Schedule of Tariff Commitments as a result of periodic amendments to the HS by the World Customs Organization (WCO) or other technical adjustments in the respective tariff nomenclature does not impair3 its commitments listed in Annexes 2A, 2B, 2C, and 2D (Schedules of Tariff Commitments on Goods).
3. If the Parties agree to transpose the product-specific rules as a result of periodic amendments to the HS by the World Customs Organization (WCO), the Parties shall ensure that the transposition of the product-specific rules does not impair their commitments listed in Appendix 2F-a (Product-Specific Rules) to Annex 2F (Rules of Origin). Pursuant to paragraph 2, product-specific rules applicable to the corresponding goods under the amended HS by the WCO shall be equal to or less restrictive than the product-specific rules applicable to the original HS position.
4. Parties shall exchange information regarding the transposition of their schedules of tariff commitments during the process of implementing this Agreement.
5. As a result of periodic amendments to the HS by the WCO or other technical adjustments in the respective national tariff nomenclature, each Party, in accordance with its domestic laws and regulations, shall make its transposed applicable tariff commitments under this Agreement publicly available.
6. Upon request of a Party, the Parties shall discuss whether any revisions are necessary to implement Annexes 2A, 2B, 2C, and 2D (Schedules of Tariff Commitments on Goods) due to periodic amendments and transposition of the HS.
Article 2.25. Export Licensing
1. For the purposes of this Article, export licensing procedure means a requirement that a Party adopts or maintains under which an exporter must, as a condition for exporting a good from the Party’s territory, submit an application or other documentation to an administrative body or bodies, but does not include customs documentation required in the normal course of trade or any requirement that must be fulfilled prior to introduction of the good into commerce within the Party’s territory.
2. Each Party shall ensure that all export licensing procedures are neutral in application and administered in a fair, equitable, non-discriminatory and transparent manner.
3. Each Party shall notify the other Parties of its existing export licensing procedures, within 60 days of the entry into force of this Agreement.
4. Each Party shall publish any new export licensing procedure, or any modification to an existing export licensing procedure whenever practicable 45 days before the new procedure or modification takes effect, and in any case no later than the date such procedure or modification takes effect.
5. The notification referred to in paragraph 3 and the publication referred to in paragraph 4 shall contain the following information:
(3) For greater certainty, a customs duty on imports and successive reductions applicable to the corresponding goods under the amended tariff nomenclature shall not deteriorate commitment on the original tariff line.
(a) list of products subject to licensing procedures;
(b) for each procedure, a description of the process for applying for a licence and any criteria an applicant must meet to be eligible to apply for a licence;
(c) contact point for information on eligibility;
(d) administrative body(ies) for submission of applications;
(e) a description of any measure or measures being implemented through the export licensing procedure, including the legal basis;
(f) the period during which each export licensing procedure will be in effect, unless the procedure remains in effect until withdrawn or revised in a new publication;
(g) if the Party intends to use an export licensing procedure to administer an export quota, the overall quantity and, where practicable, value of the quota and the opening and closing dates of the quota; and
(h) any exceptions or derogations from an export licensing requirement, how to request those exceptions or derogations, and the criteria for granting them.
6. Any Party shall respond within 60 days to a reasonable enquiry by another Party regarding any export licensing procedures which it intends to adopt or which it has adopted or maintained.
7. When a Party has denied an export licence application with respect to export of a good to another Party, it shall, upon request of the applicant and promptly after receiving the request, provide the applicant with a written explanation of the reasons for the denial. The applicant shall have a right of appeal or review in accordance with the domestic laws, regulations or procedures of the exporting Party.
8. For greater certainty, nothing in this Article requires a Party to grant an export licence, or prevents a Party from adopting, maintaining or implementing an export control regime and sanctions regime, or from implementing its obligations or commitments under United Nations Security Council Resolutions and the Arms Trade Treaty, as well as multilateral non-proliferation regimes and export control arrangements including the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Australia Group, the Nuclear Suppliers Group, and the Missile Technology Control Regime.
Chapter 3. SANITARY AND PHYTOSANITARY MEASURES
ARTICLE 3.1
Objectives
The objectives of this Chapter are to:
(a) further the implementation of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (the SPS Agreement);
(b) strengthen cooperation between the Parties in the field of sanitary and phytosanitary (SPS) measures to facilitate trade and access to their respective markets;
(c) facilitate information exchange between the Parties and enhance mutual understanding of each Party's regulatory system; and
(d) effectively solve trade concerns relating to SPS affecting trade between the Parties.
ARTICLE 3.2
Scope
This Chapter applies to sanitary and phytosanitary measures which may, directly or indirectly, affect trade between the Parties.
ARTICLE 3.3
Incorporation of the SPS Agreement
Except as otherwise provided for in this Chapter, the SPS Agreement applies and is hereby incorporated into and made part of this Agreement, mutatis mutandis.
ARTICLE 3.4
Definitions
For the purpose of this Chapter,
(a) "international standards" means the standards, guidelines and recommendations of the Codex Alimentarius Commission (CAC), the World Organisation for Animal Health (WOAH) and the relevant means the standards, guidelines and recommendations of the Codex Alimentarius Commission (CAC), the World Organisation for Animal Health (WOAH) and the relevant international and regional organisation operating within the framework of theInternational Plant Protection Convention (IPPC);
(b) "competent authorities" means each Party's authorities responsible for developing, implementing and administering SPS measures within its territory.
ARTICLE 3.5
Inspections, Certification System and System Audits
1. An importing Party shall base assessments of the inspection and certification system of the exporting Party on international standards.4
2. The Parties agree to use system audits as the preferred assessment method. The need to perform on-site inspections shall be justified.
3. If applicable, corrective actions, timeframes and follow-up procedures shall be clearly documented in an assessment report.
4. The costs incurred in carrying out the audit shall be borne by the importing Party.
5. The importing Party shall provide information in writing to the exporting Party within 60 days after the audit. The exporting Party may comment on such information within 45 days from the date of receipt. These comments shall be included in the assessment report.
ARTICLE 3.6
Certificates
1. The Parties agree to cooperate in order to minimise the number of model SPS certificates as far as possible. Where official certificates are required, these should be in line with the principles laid down in international standards. When a Party introduces or modifies a certificate, information on the proposed new or revised certificate shall be notified to the other Party in English as early as possible. The notifying Party shall, upon request, provide supplementary rationale to the other Party with regard to the new or modified certificate. The exporting Party shall be given sufficient time to adapt to the new requirements.
2. The Parties are encouraged to apply electronic SPS certificates.
(4) In particular standards and guidelines developed by the Codex Alimentarius Committee on Food Import and Export Inspection and Certification Systems (CAC/GL 26-1997).
ARTICLE 3.7
Cooperation
1. With a view to increasing the mutual understanding of their respective systems and facilitating access to respective markets, the Parties shall strengthen their cooperation.
2. Such cooperation includes, but is not limited to, collaboration between the relevant scientific institutions that provides the Parties with scientific advice and risk analysis.
3. The Parties shall ensure that all adopted SPS regulations are published and available on the Internet. Upon request, a Party shall provide supplementary information regarding import requirements in English, as appropriate.
4. The Parties shall notify any substantial change in structure, organisation and division of responsibilities of the competent authorities and contact points to the other Parties.
5. When a Party introduces a new SPS measure, the competent authorities of the importing Party shall on request, and as far as practicable in English, provide the appropriate risk assessment that justifies the measure.
ARTICLE 3.8
Procedure for Listing of Establishments
1. For approval upon request by the importing Party, for the import of products, the exporting Party shall inform the importing Party of its lists of establishments with satisfactory sanitary guarantees to demonstrate compliance with the importing Party?s requirements.
2. The importing Party shall approve establishments which are situated on the territory of the exporting Party, without prior inspection of individual establishments. If the importing Party rejects the request for approval, it should inform without delay the exporting Party of the elements and justifications upon which the decision was based.
ARTICLE 3.9
Import Checks
1. Import requirements and checks applied to imported goods shall be based on the risks associated with such goods and applied in a non-discriminatory manner. The Parties shall carry out import checks and border controls as expeditiously as possible in a manner that is no more trade-restrictive than necessary.
2. The importing Party shall make available the information about the frequency of import checks carried out on products. The frequency of import checks shall be based on a risk-based approach, taking inter alia into account the audit, results of previous import checks and by mutual agreement between the Parties.
3. Each Party shall allow the juridical or natural person responsible for the consignment subject to sampling and analysis to apply for a supplementary expert opinion as part of the official sampling.
4. Import controls shall be carried out in accordance with international standards.5
5. Goods subject to random and routine checks should not be detained pending test results.
6. If a Party rejects a product at a port of entry due to a verified serious sanitary or phytosanitary issue, it shall inform the competent authority of the exporting Party as soon as possible. "Serious sanitary or phytosanitary issues" mean cases where international standards foresee a notification between competent authorities, in particular in the guidelines for the exchange of information between countries on rejections of imported food, by the CAC, the WOAH, and the IPPC.
7. If a Party rejects a product at a port of entry, it shall, upon request, provide the exporting Party with the factual basis and scientific justification as soon as possible.
8. If a Party detains, at a port of entry, a product due to a perceived failure to comply with an SPS measure, that Party shall promptly inform the importer about the factual justification for the detention.
9. If a Party rejects a product at a port of entry, it shall ensure that appropriate legal procedures exist for the importer (the person responsible for the consignment) or the importer?s representative to appeal the decision.
ARTICLE 3.10
Measures Linked to Animal and Plant Health
1. The Parties recognise the concept of disease-free areas, areas of low disease prevalence, and compartmentalisation in accordance with the SPS Agreement and WOAH standards, guidelines or recommendations. The Parties also recognise the official animal health status as determined by the WOAH.
2. The Parties recognise the concept of pest-free areas, areas of low pest prevalence, protected zones and pest free production sites in accordance with the SPS Agreement and IPPC standards, guidelines or recommendations.
3. Upon request, the Parties shall inform relevant procedures for recognising the disease-free area or pest-free areas in accordance with the SPS Agreement and IPPC standards, guidelines or recommendations.
(5) In particular the Codex Alimentarius Commission guidelines for food import control systems (CAC/GL 47-2003) and guidelines for the design, operation, assessment and accreditation of food import and export inspection and certification systems (CAC/GL 26-1997).
4. When accepting the determination made by the exporting Party, the importing Party shall in principle base its own determination of the animal or plant health status of the exporting Party or parts thereof on the information provided by the exporting Party in accordance with the SPS Agreement, and WOAH and IPPC standards, guidelines or recommendations. The importing Party will endeavour to provide its decision without undue delay after the initial request.
5. If the importing Party does not accept the determination made by the exporting Party, it shall explain the reasons and shall be ready to enter into consultations as soon as possible to reach a possible alternative solution.
6. The exporting Party shall provide relevant evidence in order to objectively demonstrate to the importing Party that the health status of the areas referred to in paragraphs 1 and 2 is likely to remain unchanged. For these purposes, reasonable access shall be given, upon request, to the importing Party for inspection, testing and other relevant procedures.
ARTICLE 3.11
Consultations
Consultations shall be held at the request of a Party, which considers that another Party has taken a measure, which is likely to create, or has created, an obstacle to trade. Unless otherwise agreed, such consultations shall
take place within 30 days from the request with the objective of finding mutually acceptable solutions. The Joint Committee will be informed of the consultations. In case of perishable goods, the competent authorities shall endeavour to promptly hold such consultations. Such consultations may be conducted by any agreed method.6
ARTICLE 3.12
Review
A Party may request to negotiate an arrangement extending to each other equivalent treatment related to SPS measures which all Parties have agreed with the EU. The receiving Party will positively consider such a request in accordance with its domestic laws and regulations.
ARTICLE 3.13
Competent Authority and Contact Points
The Parties shall exchange names, addresses and responsibilities of competent authorities and contact points for this Chapter in order to facilitate communication and the exchange of information. Each Party shall keep this information up to date.
(6) It is understood that consultations pursuant to this paragraph shall be without prejudice to the rights and obligations of the Parties under Chapter 13 (Dispute Settlement) or under the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes.
Chapter 4. TRADE IN SERVICES
ARTICLE 4.1
Scope and Coverage
1. This Chapter applies to measures by Parties affecting trade in services and taken by central, regional or local governments and authorities as well as by non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities.
2. In respect of air transport services, this Chapter shall not apply to measures affecting air traffic rights or measures affecting services directly related to the exercise of air traffic rights, except as provided for in paragraph 3 of the GATS Annex on Air Transport Services. The definitions of paragraph 6 of the GATS Annex on Air Transport Services are hereby incorporated and made part of this Chapter.
3. Articles 4.4 (Most-Favoured-Nation Treatment), 4.5 (Market Access) and 4.6 (National Treatment) shall not apply to laws, regulations or requirements governing the procurement by governmental 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.
ARTICLE 4.2
Incorporation of Provisions from the GATS Wherever a provision of this Chapter provides that a provision of the GATS is incorporated into and made part of this Chapter, the meaning of the terms used in the GATS provision shall be understood as follows:
(a) "Member" means Party;
(b) "Schedule? means a Schedule referred to in Article 4.17 (Schedules of Specific Commitments) and contained in Annex 4E (Schedules of Specific Commitments); and
(c) "specific commitment" means a specific commitment in a Schedule referred to in Article 4.17 (Schedules of Specific Commitments).
ARTICLE 4.3
Definitions
For the purpose of this Chapter:
(a) the following definitions of Article I of the GATS are hereby incorporated into and made part of this Chapter:
(i) “trade in services”;
(ii) “services”; and
(iii) “a service supplied in the exercise of governmental authority”;
(b) “service supplier” means any person that supplies a service;7
(c) “natural person of another Party” means a national or a permanent resident of that other Party;
(d) “juridical person of another 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) any Party; or
(B) 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 other Party; or
(B) juridical persons of that other Party identified under subparagraph (d)(i);
(e) the following definitions of Article XXVIII of the GATS are hereby incorporated into and made part of this Chapter:
(i) “measure”;
(ii) “supply of a service”;
(7) Where the service is not supplied or sought to be 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 commercial presence be accorded the treatment provided for service suppliers under this Chapter. Such treatment shall be extended to the commercial presence through which the service is supplied or sought to be supplied and need not be extended to any other parts of the service supplier located outside the territory where the service is supplied or sought to be supplied.
(iii) “measures by Members affecting trade in services”;
(iv) “commercial presence”;
(v) “sector” of a service;
(vi) “service of another Member”;
(vii) “monopoly supplier of a service”;
(viii) “service consumer”;
(ix) “person”;
(x) “juridical person”;
(xi) “owned”, “controlled” and “affiliated”; and
(xii) “direct taxes”
ARTICLE 4.4
Most-Favoured-Nation Treatment
1. Without prejudice to measures taken in accordance with Article VII of the GATS, and with respect to any measure covered by this Chapter, except as provided for in its List of MFN Exemptions contained in Annex 4F (List of MFN Exemptions), each Party shall accord immediately and unconditionally to services and service suppliers of any other Party treatment no less favourable than the treatment it accords to like services and service suppliers of any non-Party.
2. Treatment granted under other existing or future agreements concluded, signed or amended by a Party and compliant with Article V or Article Vbis of the GATS shall not be subject to paragraph 1. 8,9
3. If a Party concludes, signs or amends a future agreement referred to in paragraph 2 after the entry into force of this Agreement, it shall, upon request from another Party, afford adequate opportunity to that Party to negotiate the benefits granted therein. Such an opportunity shall be without prejudice to the final outcome. The Parties shall take into consideration the circumstances under which a Party enters into such agreements with a non-Party.
(8) In this Agreement it is understood that treatment granted by a Party under other existing or future agreements shall not be subject to paragraph 1 if that Party is compliant with Article V or Article Vbis of the GATS in such other existing or future agreements.
(9) For the purposes of this Agreement, this obligation does not cover the notification requirement under paragraph 7 of Article V, and paragraph b of Article Vbis of the GATS.