1. Each Party shall, to the extent possible, apply information technology to support customs operations based on internationally accepted standards for expeditious customs clearance and release of goods.
2. Each Party shall, to the extent possible, use information technology that expedites customs procedures for the release of goods, including the submission of data before the arrival of the shipment of those goods, as well as electronic or automated systems for risk management targeting.
3. Each Party shall endeavour to make its trade administration documents available to the public in electronic versions.
4. Each Party shall endeavour to accept trade administration documents submitted electronically as the legal equivalent of the paper version of these documents.
5. In developing initiatives that provide for the use of paperless trade administration, each Party is encouraged to take into account international standards or methods made under the auspices of international organisations.
6. Each Party shall cooperate with other Parties and in international fora to enhance the acceptance of trade administration documents submitted electronically.
Article 4.13. Trade Facilitation Measures for Authorised Operators
1. Each Party shall provide additional trade facilitation measures related to import, export, or transit formalities and procedures, pursuant to paragraph 3, to operators who meet specified criteria, (hereinafter referred to as "authorised operators" in this Chapter). Alternatively, a Party may offer such trade facilitation measures through customs procedures generally available to all operators and is not required to establish a separate scheme.
2. The specified criteria to qualify as an authorised operator shall be related to compliance, or the risk of non-compliance, with requirements specified in a Party's laws, regulations, or procedures.
(a) Such criteria, which shall be published, may include:
(i) an appropriate record of compliance with customs and other related laws and regulations;
(ii) a system of managing records to allow for necessary internal controls;
(iii) financial solvency, including, where appropriate, provision of a sufficient security or guarantee; and
(iv) supply chain security.
(b) Such criteria shall not:
(i) be designed or applied so as to afford or create arbitrary or unjustifiable discrimination between operators where the same conditions prevail; and
(ii) to the extent possible, restrict the participation of small and medium enterprises.
3. The trade facilitation measures provided pursuant to paragraph 1 shall include at least three of the following measures: (4)
(a) low documentary and data requirements, as appropriate;
(b) low rate of physical inspections and examinations, as appropriate;
(c) rapid release time, as appropriate;
(d) deferred payment of duties, taxes, fees, and charges;
(e) use of comprehensive guarantees or reduced guarantees;
(f) a single customs declaration for all imports or exports in a given period; and
(g) clearance of goods at the premises of the authorised operator or another place authorised by a customs authority.
4. Each Party is encouraged to develop authorised operator schemes on the basis of international standards, where such standards exist, except when such standards would be an inappropriate or ineffective means for the fulfilment of the legitimate objectives pursued.
5. In order to enhance the trade facilitation measures provided to operators, each Party shall afford to other Parties the possibility of negotiating mutual recognition of authorised operator schemes.
6. The Parties are encouraged to cooperate, where appropriate, in developing their respective authorised operator schemes using the contact points designated pursuant to Article 4.20 (Consultations and Contact Points) and the Committee on Goods through the following:
(a) exchanging information on such schemes and on initiatives to introduce new schemes;
(b) sharing perspectives on business views and experiences, and best practices in business outreach;
(c) sharing information on approaches to mutual recognition of such schemes; and
(d) considering ways to enhance the benefits of such schemes to promote trade, and, in the first instance, to designate customs officers as coordinators for authorised operators to resolve customs issues.
Article 4.14. Risk Management
1. Each Party shall adopt or maintain a risk management system for customs control.
2. Each Party shall design and apply risk management in a manner so as to avoid arbitrary or unjustifiable discrimination, or disguised restrictions on international trade.
3. Each Party shall concentrate customs control and, to the extent possible other relevant border controls, on high risk consignments and expedite the release of low risk consignments. Each Party may also select, on a random basis, consignments for such controls as part of its risk management.
4. Each Party shall base risk management on the assessment of risk through appropriate selectivity criteria. Such selectivity criteria may include, inter alia, HS code, nature and description of the goods, country of origin, country from which the goods were shipped, value of the goods, compliance record of traders, and type of means of transport.
Article 4.15. Express Consignments
1. Each Party shall adopt or maintain customs procedures to expedite the clearance of express consignments for at least those goods entered through air cargo facilities while maintaining appropriate customs control and selection, (5) by:
(a) providing for pre-arrival processing of information related to express consignments;
(b) permitting, to the extent possible, the single submission of information covering all goods contained in an express consignment, through electronic means;
(c) minimising the documentation required for the release of express consignments;
(d) providing for express consignment to be released under normal circumstances as rapidly as possible, and within six hours when possible, after the arrival of the goods and submission of the information required for release;
(e) endeavouring to apply the treatment in subparagraphs (a) through (d) to shipments of any weight or value recognising that a Party is permitted to require additional entry procedures, including declarations and supporting documentation and payment of duties and taxes, and to limit such treatment based on the type of good, provided that the treatment is not limited to low value goods such as documents; and
(f) providing, to the extent possible, fora de minimis shipment value or dutiable amount for which customs duties and taxes will not be collected, aside from certain prescribed goods. Internal taxes, such as value added taxes and excise taxes, applied to imports consistently with Article III of GATT 1994, shall not be subject to this provision.
2. Nothing in paragraph 1 shall affect the right of a Party to examine, detain, seize, confiscate or refuse the entry of goods, or to carry out post-clearance audits, including in connection with the use of risk management systems. Further, nothing in paragraph 1 shall prevent a Party from requiring, as a condition for release, the submission of additional information and the fulfilment of non- automatic licensing requirements.
Article 4.16. Post-clearance Audit
1. With a view to expediting the release of goods, each Party shall adopt or maintain post-clearance audit to ensure compliance with its customs and other related laws and regulations.
2. Each Party shall select a person or a consignment for post- clearance audit in a risk-based manner, which may include appropriate selectivity criteria. Each Party shall conduct post- clearance audits in a transparent manner. Where the person is involved in the audit process and conclusive results have been achieved, the Party shall, without delay, notify the person whose record was audited of the:
(a) results;
(b) reasons for the results; and
(c) person's rights and obligations.
3. The Parties acknowledge that the information obtained in post- clearance audit may be used in further administrative or judicial proceedings.
4. Each Party shall, wherever practicable, use the result of post- clearance audit in applying risk management.
Article 4.17. Time Release Studies
1. Each Party is encouraged to measure the time required for the release of goods by its customs authority periodically and in a consistent manner, and to publish the findings thereof, using tools such as the Guide to Measure the Time Required for the Release of Goods issued by the World Customs Organization with a view to:
(a) assessing its trade facilitation measures; and
(b) considering opportunities for further improvement of the time required for the release of goods.
2. Each Party is encouraged to share with the other Parties its experiences in the time release studies referred to in paragraph 1, including methodologies used and bottlenecks identified.
Article 4.18. Review and Appeal
1. Each Party shall provide that any person to whom its customs authority issues an administrative decision (6) has the right, within its territory, to:
(a) an administrative appeal to or review by an administrative authority higher than or independent of the official or office that issued the decision; and
(b) a judicial appeal or review of the decision. (7)
2. The legislation of a Party may require that an administrative appeal or review be initiated prior to a judicial appeal or review.
3. Each Party shall ensure that its procedures for appeal or review are carried out in a non-discriminatory manner.
4. Each Party shall ensure that, in a case where the decision on appeal or review under subparagraph 1(a) is not given either:
(a) within set periods as specified in its laws or regulations; or
(b) without undue delay,
the petitioner has the right to either further appeal to or further review by the administrative authority or the judicial authority or any other recourse to the judicial authority. (8)
5. Each Party shall ensure that the person referred to in paragraph 1 is provided with the reasons for the administrative decision so as to enable such a person to have recourse to procedures for appeal or review where necessary.
6. Each Party shall ensure that the person referred to in paragraph 1 is not treated unfavourably merely because that person seeks review of an administrative decision or omission referred to in paragraph 1.
7. Each Party is encouraged to make this Article applicable to an administrative decision issued by a relevant border agency other than its customs authority.
8. The decision, and the reasons for the decision, of an administrative or judicial review or appeal shall be provided in writing.
Article 4.19. Customs Cooperation
1. The customs authority of each Party may, as deemed appropriate, assist the customs authorities of other Parties, in relation to:
(a) the implementation and operation of this Chapter;
(b) developing and implementing customs best practice and risk management techniques;
(c) simplifying and harmonising customs procedures;
(d) advancing technical skills and the use of technology;
(e) application of the Customs Valuation Agreement; and
(f) such other customs issues as the Parties may mutually determine.
2. Each Party shall, to the extent possible, provide the other Parties with timely notice of any significant administrative change, modification of a law or regulation, or similar measure related to its laws or regulations that govern importations or exportations, that is likely to substantially affect the operation of this Chapter. The notice can be made in the English language or the Party's language and will be provided to the contact point designated pursuant to Article 4.20 (Consultations and Contact Points).
3. The customs authority of a Party may, as deemed appropriate, share with other Parties, information and experiences on development of customs administration.
4. Each Party shall, to the extent possible and practicable, cooperate on mutually agreed terms with other Parties with whom itshares a common border with a view to coordinating procedures at border crossings to facilitate cross-border trade.
Article 4.20. Consultations and Contact Points
1. A Party may at any time request consultations with another Party regarding any significant customs matter arising from the operation or implementation of this Chapter, providing relevant details related to the matter. Such consultations shall be conducted through the respective contact points designated pursuant to paragraph 3 and shall commence within 30 days following the date of the receipt of the request, unless the relevant Parties determine otherwise.
2. In the event that such consultations fail to resolve the matter, the requesting Party may refer the matter to the Committee on Goods.
3. Each Party shall, within 30 days of the date of entry into force of this Agreement for that Party, designate one or more contact points for the purposes of this Chapter and notify the other Parties of the contact details and other relevant information, if any. Each Party shall promptly notify the other Parties of any change to those contact details.
Article 4.21. Implementation Arrangement
Recognising the different levels of readiness of Parties in implementing some of the commitments under this Chapter, Parties shall be given a period of time as identified in Annex 4A (Period of Time to Implement the Commitments) during which the full implementation of specified commitments shall commence.
Chapter 5. Sanitary and Phytosanitary Measures
Article 5.1. Definitions
For the purposes of this Chapter:
(a) the definitions provided in Annex A of the SPS Agreement shall apply;
(b) relevant definitions developed by Codex Alimentarius Commission, the World Organisation for Animal Health, and the International Plant Protection Convention shall be taken into account;
(c) competent authorities means those authorities within each Party recognised by the national government as responsible for developing and administering the sanitary and phytosanitary measures within that Party; and
(d) emergency measure means a sanitary or phytosanitary measure that is applied by an importing Party to a relevant exporting Party to address an urgent problem of human, animal or plant life or health protection that arises or threatens to arise in the Party applying the measure.
Article 5.2. Objectives
The objectives of this Chapter are to:
(a) protect human, animal or plant life or health in the Parties through the development, adoption, and application of sanitary and phytosanitary measures, while facilitating trade by minimising the negative effects on trade among the Parties;
(b) enhance the practical implementation of the SPS Agreement;
(c) enhance the transparency and understanding of the development and application of sanitary and phytosanitary measures of the Parties;
(d) strengthen cooperation, communication, and consultation among the Parties in the field of sanitary and phytosanitary measures; and
(e) encourage the Partiesâ participation in the development and adoption of international standards, guidelines, and recommendations.
Article 5.3. Scope
This Chapter shall apply to all sanitary and phytosanitary measures of the Parties, which may, directly or indirectly, affect trade among the Parties.
Article 5.4. General Provision
Each Party affirms its rights and obligations with respect to each other Party under the SPS Agreement.
Article 5.5. Equivalence
1. The Parties shall strengthen cooperation on equivalence in accordance with the SPS Agreement while taking into account the relevant decisions of the WTO Committee on Sanitary and Phytosanitary Measures (hereinafter referred to as "WTO SPS Committee" in this Chapter) and international standards, guidelines, and recommendations.
2. An importing Party shall recognise the equivalence of a sanitary or phytosanitary measure if an exporting Party objectively demonstrates to the importing Party that the exporting Party's measure achieves the same level of protection as the importing Party's measure, or that the exporting Party's measure has the same effect in achieving the objective as the importing Party's measure.
3. In determining the equivalence of a sanitary or phytosanitary measure, the importing Party shall take into account available knowledge, information, and experience, as well as the regulatory competence, of the exporting Party.
4. A Party shall, upon request, enter into consultation with the aim of achieving bilateral recognition arrangements on the equivalence of specified sanitary or phytosanitary measures. The recognition of equivalence under such bilateral recognition arrangements may be with respect to a single measure, a group of measures, or on a systems-wide basis. For this purpose, reasonable access shall be given by the exporting Party, upon request, to the importing Party for inspection, testing, and other relevant procedures.
5. As part of the consultation for equivalence recognition, on request of the exporting Party, the importing Party shall explain and provide:
(a) the rationale and objective of its measures; and
(b) the specific risks its measures are intended to address.
6. The exporting Party shall provide necessary information in order for the importing Party to commence an equivalence assessment. Once the assessment commences, the importing Party shall, upon request, and without undue delay, explain the process and plan for making an equivalence determination.
7. The consideration by a Party of a request from another Party for recognition of the equivalence of its measures with regard to a specific product, or group of products, shall not be in itself a reason to disrupt or suspend ongoing imports from the Party of the product or products in question.
8. When an importing Party recognises the equivalence of an exporting Party's specific sanitary or phytosanitary measure, group of measures, or measures on a systems-wide basis, the importing Party shall communicate the decision in writing to the exporting Party and implement the measure within a reasonable period of time. The rationale shall be provided in writing by the importing Party in the event that the decision is negative.
9. The Parties involved in a positive determination of equivalence are encouraged, where mutually agreed, to share information and experiences at the Committee on Goods.
Article 5.6. Adaptation to Regional Conditions, Including Pest- or Disease-free Areas and Areas of Low Pest or Disease Prevalence
1. The Parties recognise the concepts of regional conditions, including pest- or disease-free areas and areas of low pest or disease prevalence. The Parties shall take into account the relevant decisions of the WTO SPS Committee and international standards, guidelines, and recommendations.
2. The Parties may cooperate on the recognition of regional conditions with the objective of acquiring confidence in the procedures followed by each Party for such recognition.
3. On request of an exporting Party, an importing Party shall, without undue delay, explain its process and plan for making a determination of regional conditions.
4. When an importing Party has received a request for a determination of regional conditions from an exporting Party and has determined that the information provided by the exporting Party is sufficient, it shall initiate the assessment within a reasonable period of time.
5. For such an assessment, reasonable access shall be given by the exporting Party, upon request, to the importing Party for inspection, testing, and other relevant procedures.
6. On request of the exporting Party, the importing Party shall inform the exporting Party of the status of the assessment.
7. When an importing Party recognises specific regional conditions of an exporting Party, the importing Party shall communicate that decision to the exporting Party in writing and implement the measures within a reasonable period of time.
8. If the evaluation of the evidence provided by the exporting Party does not result in a decision by the importing Party to recognise the regional conditions, the importing Party shall provide the exporting Party with the rationale for its decision in writing within a reasonable period of time.
9. The Parties involved in a determination recognising regional conditions are encouraged, where mutually agreed, to report the outcome to the Committee on Goods.
Article 5.7. Risk Analysis
1. The Parties shall strengthen their cooperation on risk analysis in accordance with the SPS Agreement while taking into account the relevant decisions of the WTO SPS Committee and international standards, guidelines, and recommendations.
2. When conducting a risk analysis, an importing Party shall:
(a) ensure that the risk analysis is documented and that it provides the relevant exporting Party or Parties with an opportunity to comment, in a manner to be determined by the importing Party;
(b) consider risk management options that are not more trade restrictive than required (1) to achieve its appropriate level of sanitary or phytosanitary protection; and
(c) select a risk management option that is not more trade restrictive than required to achieve its appropriate level of sanitary or phytosanitary protection, taking into account technical and economic feasibility.
3. On request of an exporting Party, an importing Party shall inform the exporting Party of the progress of a specific risk analysis request, and of any delay that may occur during the process.
4. Without prejudice to emergency measures, no Party shall stop the importation of a good of another Party solely for the reason that the importing Party is undertaking a review of a sanitary or phytosanitary measure, if the importing Party permitted importation of the good of the other Party at the time of the initiation of the review.
Article 5.8. Audit (2)
1. In undertaking an audit, each Party shall take into account the relevant decisions of the WTO SPS Committee and international standards, guidelines, and recommendations.
2. An audit shall be systems-based and conducted to assess the effectiveness of the regulatory controls of the competent authorities of the exporting Party to provide the required assurances and meet the sanitary and phytosanitary measures of the importing Party (3)
3. Prior to the commencement of an audit, the importing Party and exporting Party involved shall exchange information on the objectives and scope of the audit and other matters related specifically to the commencement of an audit.
4. The importing Party shall provide the exporting Party with an opportunity to comment on the finding of an audit and take any such comments into account before making its conclusions and taking any action. The importing Party shall provide a report or its summary, setting out its conclusions in writing to the exporting Party within a reasonable period of time. The importing Party shall inform the exporting Party if a request is required to provide such report or summary.