Title
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE REPUBLIC OF CHILE
Preamble
The Government of the Republic of Indonesia and the Government of the Republic of Chile, hereinafter individually referred to as a "Party" or collectively as the "Parties";
Inspired by their longstanding ties of friendship and cooperation in many sectors of common concerns and interests, especially in economic areas based on mutual benefit and confidence;
Recalling the Joint Ministerial Statement on the Negotiation of the Indonesia- Chile Comprehensive Economic Partnership Agreement (IC-CEPA) signed in Jakarta on 12 May 2017;
Desiring to bring the longstanding economic relations to a new chapter of economic cooperation by reducing barriers and widening economic linkages between the Parties through liberalising trade;
Confident that the strengthening of their economic partnership will provide a strong platform for the expansion and deepening of economic ties and cooperation which will bring economic and social benefits, create new opportunities for workers and businesses, and improve the living standards of their people;
Convinced that IC-CEPA, covering trade in goods would serve as an important framework to boost economic growth and equitable economic development;
Desiring to promote bilateral trade through the establishment of clear, transparent, predictable and mutually advantageous trade rules and the avoidance or removal of trade barriers;
Sharing the belief that a comprehensive economic partnership shall produce mutual benefits to each Party and contribute to the expansion and development of world trade under the multilateral trading system embodied in the Marrakesh Agreement Establishing the World Trade Organization (WTO Agreement);
Reaffirming the respective rights and obligations of the Parties under the World Trade Organization (WTO) and other existing international agreements and arrangements;
Conscious of the Asia-Pacific Economic Cooperation (APEC) goals and aware of the growing importance of trade and investment for the economies of the Asia-Pacific region; and
Determined to establish a legal framework for such comprehensive economic partnership among the Parties.
Have agreed as follows:
Body
Chapter 1. INITIAL PROVISIONS
Article 1.1. Establishment of a Free Trade Area
The Parties, consistent with Article XXIV of GATT 1994, hereby establish a free trade area in accordance with the provisions of this Agreement.
Article 1.2. Relation to other Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which the Parties are party.
2. If a Party considers that a provision of this Agreement is inconsistent with a provision of another agreement to which it and the other Party are party, the Parties shall, on request, consult with each other with a view to reaching a mutually satisfactory solution. This paragraph is without prejudice to the rights and obligations of a Party under Chapter 12 (Dispute Settlement). (1)
Chapter 2. GENERAL DEFINITIONS
Article 2.1. Definitions of General Application
For the purposes of this Agreement, unless otherwise specified:
Agreement means the Comprehensive Economic Partnership Agreement between Indonesia and Chile (IC-CEPA);
Commission means the IC-CEPA Joint Commission established pursuant to Article 11.1 (IC-CEPA Joint Commission);
Customs Authority means the authority that, according to the legislation of each Party, is responsible for the administration and enforcement of its customs laws:
(a) for Indonesia, the Directorate General of Customs and Excise, Ministry of Finance, or its successor; and
(b) for Chile, the National Customs Service, or its successor;
customs duty includes any import duty and a charge of any kind imposed in connection with the importation of a good, but does not include any:
(a) charges equivalent to internal taxes, including excise duties, sales tax, and goods and services taxes imposed in accordance with a Party's commitments under paragraph 2 of Article Ill of GATT 1994;
antidumping or countervailing duty or safeguards duty applied in accordance with Chapter 8 (Trade Remedies); or
fees or other charges that are limited in amount to the approximate cost of services rendered, and do not represent a direct or indirect protection for domestic goods or a taxation of imports for fiscal purposes;
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, contained In Annex 1A to the WTO Agreement;
days mean calendar days, including weekends and public holidays;
existing means in effect on the date of entry into force of this Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System governed by The International Convention on the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, and Chapter Notes, and their amendments, as adopted and implemented by the Parties in their respective tariff laws,
heading means the first four digits in the tariff classification number under the Harmonized System (HS);
measure means any measure by a Party, whether in the form of a law,
regulation, rule, procedure, decision, any administrative action or any other form;
originating good means a good that qualifies as an originating good in accordance with the rules of origin set out in Chapter 4 (Rules of Origin);
person means a natural person or a juridical person; person of a Party means a natural person or a juridical person of a Party;
preferential tariff treatment means the duty rate applicable under this Agreement to an originating good;
Safeguards Agreement means the Agreement on Safeguards, contained in Annex 1A to the WTO Agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement,
subheading means the first six digits in the tariff classification number under the Harmonized System (HS),
TBT Agreement means the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement;
territory means:
(a) for Indonesia, the land territories, internal waters, archipelagic waters, territorial sea, including seabed and subsoil thereof, and airspace over such territories and waters, as well as continental shelf and exclusive economic zone, over which Indonesia has sovereignty, sovereign rights, or jurisdiction as defined in its laws and in accordance with the United Nations Convention on the Law of the Sea, done at Montego Bay, December 10, 1982; and
for Chile, the land, maritime, and air space under its sovereignty, and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law;
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on April 15, 1994.
Chapter 3. TRADE IN GOODS
Article 3.1. Definitions
For the purposes of this Chapter:
agricultural goods mean those goods referred to in Article 2 of the Agreement on Agriculture, contained in Annex 4A to the WTO Agreement (WTO Agreement on Agriculture);
agricultural export subsidies shall have the meaning assigned to that term in Article 1 (e) of the WTO Agreement on Agriculture, including any amendment of that Article;
consular transactions mean requirements that goods of a Party intended for export to the territory of the other Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas for commercial invoices, certificates of origin, manifests, shippersâ export declarations or any other customs documentation required on or in connection with importation;
duty-free means free of customs duty;
Import Licensing Agreement means the Agreement on Import Licensing Procedures, contained in Annex 1A to the WTO Agreement; and
import licensing means administrative procedures requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party.
Article 3.2. Scope and Coverage
This Chapter applies to trade in all goods between the Parties.
Article 3.3. National Treatment
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretative notes. To this end, Article Ill of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
Article 3.4. Reduction and/or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, each Party shall progressively reduce and/or eliminate customs duties on originating goods of the other Party in accordance with its Schedule of Tariff Commitments in Annex 3-A.
2. Except as otherwise provided in this Agreement, a Party shall not increase any existing customs duty or introduce a new customs duty on an originating good covered by this Agreement.
3. If the Most Favoured Nation (MFN) rate of customs duties applied by a Party on a particular good is lower than the rate of customs duty provided for in its schedule of tariff commitments set out in Annex 3-A, that Party shall apply the lower rate to the originating good of the other Party.
4. On request of either Party, the Parties shall consult to consider improving tariff commitments set out in their Schedules set out in Annex 3-A. An agreement between the Parties to improve tariff commitments under this Agreement shall be considered and adopted in accordance with Article 11.1.4(c) (IC-CEPA Joint Commission).
5. A Party may at any time accelerate unilaterally the reduction and/or elimination of customs duties on originating goods of the other Party set out in its Schedule in Annex 3-A. A Party considering doing so shall inform the other Party as early as practicable.
Article 3.5. Administrative Fees and Formalities
1. Each Party shall ensure that fees, charges, formalities and requirements imposed in connection with the importation and exportation of goods shall be consistent with its rights and obligations under GATT 1994.
2. Each Party shall not require consular transactions, including related fees and charges, in connection with the importation of any good of the other Party.
3. Each Party shall, to the extent possible, in accordance with its respective laws and regulations, make a list of current fees and charges that it imposes in connection with importation and exportation, and make such information publicly available on the internet or other similar means.
Article 3.6. Non-Tariff Measures
1. Each Party shall not adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with its rights and obligations under the WTO Agreement or this Agreement. To this end, Article XI of GATT 1994 and its interpretative notes shall be incorporated into and shall form part of this Agreement, mutatis mutandis.
2. The Parties shall not adopt or maintain any other non-tariff measures on the importation of any good of the Party or on the exportation of any good destined to the territory of the other Party, except in accordance with its obligations under the WTO Agreement or this Agreement.
3. Each Party shall ensure the transparency of its non-tariff measures permitted in paragraph 1 and that any such measures are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to trade between the Parties.
Article 3.7. Import Licensing
1. The Parties may not adopt or maintain a measure that is inconsistent with the Import Licensing Agreement.
2. Each Party shall ensure that all automatic and non-automatic import licensing measures are implemented in a transparent and predictable manner, and applied in accordance with the Import Licensing Agreement.
3. Each Party shall notify the other Party of its existing import licensing procedures, unless these were already notified or provided under Articles 5 or 7.3 of the Import Licensing Agreement. The notification shall contain the same information as referred to in Articles 5 or 7.3 of the Import Licensing Agreement.
4. On request of the other Party, a Party shall, promptly and to the extent possible, respond to the request of that other Party for information on import licensing requirements of general application.
Article 3.8. Agricultural Export Subsidies
The Parties shall not introduce or maintain any export subsidies on any agricultural goods.
Article 3.9. Classification of Goods and Transposition of Schedules of Tariff Commitments
1. The classification of goods traded between the Parties shall be in conformity with the HS and its amendments.
2. The Parties shall mutually decide whether any revisions are necessary to implement Annex 3-A due to periodic amendments or transposition of the HS.
3. The transposition of the schedules of tariff commitments shall be carried out in accordance with the methodologies and procedures adopted by the Committee on Trade in Goods. The said methodologies and procedures may provide for the timely circulation of the draft schedule of tariff commitments, the provision of comments by the other Party on the aforementioned draft schedule, and the exchange of correlation table for the transposition.
4. If the Parties decide that revisions are necessary in accordance with paragraph 2, the Parties, through the Committee on Trade in Goods shall endorse and promptly publish such revisions.
Article 3.10. Geographical Indications
1. Each Party shall provide the means for persons of the other Party to apply for protection of geographical indications. Each Party shall accept applications, without the requirement for intercession by a Party on behalf of its persons.
2. The terms listed in Annex 3.10-A and Annex 3.10-B are respectively geographical indications of Indonesia and Chile, within the meaning of Article 22.1 of the Agreement on Trade-Related Aspects of Intellectual Property Rights, contained in Annex 1C to the WTO Agreement (TRIPS Agreement). Subject to the laws and regulations of each Party, in a manner that is consistent with the TRIPS Agreement, such terms shall be protected as geographical indications in the territory of the other Party.
3. On request of a Party, the Commission may decide to add to, or remove from Annex 3.10-A and Annex 3.10-B, geographical indications.
Article 3.11. Committee on Trade In Goods
1. The Parties hereby establish a Committee on Trade in Goods (Committee), which shall comprise representatives of the Parties.
2. Under the framework of this Committee there are three Sub-Committees:
(a) the Sub-Committee on Rules of Origin set out in Article 4.15 (Sub- Committee on Rules of Origin);
(b) the Sub-Committee on Sanitary and Phytosanitary Measures set out in Article 6.10 (Sub-Committee on Sanitary and Phytosanitary Measures); and
(c) the Sub-Committee on Technical Barriers to Trade set out in Article 7.13 (Sub-Committee on Technical Barriers to Trade).
3. For the purposes of the effective implementation and operation of this Chapter, the functions of the Committee shall be:
(a) monitoring the implementation and operation of this Chapter and Chapters 4 (Rules of Origin), 6 (Sanitary and Phytosanitary Measures) and 7 (Technical Barriers to Trade);
(b) consulting any issues related to this Chapter and its Sub- Committees;
(c) reporting the conclusions and the outcome of discussions to the Commission;
(d) identifying and recommending measures to promote and facilitate improved market access, including any improvement of tariff commitments under Article 3.4;
(e) assessing barriers to trade in goods between the Parties, especially those related to the application of non-tariff measures, and, if appropriate, referring such matters to the Commission for its consideration;
(f) receiving reports from, and reviewing the work of the sub- committees referred to in paragraph 2; and
(g) carrying out other functions as may be delegated by the Commission.
4. The Committee shall meet at such venue and time in person or by any other means as may be agreed by the Parties.
Article 3.12. Contact Points
1. Each Party shall designate a contact point to facilitate communication between the Parties on any matter relating to this Chapter.
2. If a Party considers that any proposed or actual measure of the other Party may materially affect trade in goods between them, that Party may, through the contact point, request detailed information relating to that measure and, if necessary, request consultations with a view to resolving any concern about the measure. The other Party shall respond promptly to such requests for information and consultation.
Chapter 4. RULES OF ORIGIN
Section A. Rules of Origin
Article 4.1. Definitions
For the purposes of this Chapter:
CIF means the value of the good imported and includes the cost of insurance and freight up to the port or place of entry in the country of importation;
Competent Authority means the Governmental authority that, according to the laws and regulations of each Party, is responsible for the issuing of a certificate of origin or for the designation of certification entities or bodies:
(a) for Indonesia, the Ministry of Trade, or its successor; and
(b) for Chile, the General Directorate of International Economic Affairs, Ministry of Foreign Affairs, or its successor,
FOB means the free-on-board value of the good, inclusive of the cost of transport to the port or site of final shipment abroad;
fungible goods or materials mean goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical;
good means any material and product which can be wholly obtained or produced, or manufactured, even if they are intended for later use in another manufacturing operation;
indirect materials mean a good used in the production, testing or inspection of another good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, including:
(a) fuel, energy, catalysts and solvents;
(b) equipment, devices and supplies used for testing or inspection of the goods;
(c) gloves, glasses, footwear, clothing, safety equipment and supplies;
(d) tools, dies and moulds;
(e) spare parts and materials used in the maintenance of equipment and buildings;
(f) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; and
(g) any other goods which are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production;
material means a good that is used in the production of another good;
packing materials and containers for shipment mean goods used to protect a good during its transportation, other than containers and packaging materials used for retail sale;
preferential treatment means the rate of customs duties applicable to an originating good of the exporting Party in accordance with Article 3.4 (Reduction and/or Elimination of Customs Duties); and
production means methods of obtaining goods including, but not limited to growing, raising, mining, harvesting, fishing, farming, trapping, hunting, capturing, aquaculture, gathering, collecting, breeding, extracting, manufacturing, processing or assembling a good.
Article 4.2. Origin Criteria
Except as otherwise provided in this Chapter, a good shall qualify as an originating good of a Party if the good is:
(a) wholly obtained or produced entirely in the territory of that Party as defined in Article 4.3;
(b) produced entirely in the territory of that Party exclusively from originating materials; or
(c) produced entirely in the territory of that Party using non-originating materials, provided that the good satisfies the product specific rules set out in Annex 4-A,
and meets the other applicable provisions of this Chapter.
Article 4.3. Wholly Obtained or Produced Goods
The following goods shall be considered as wholly obtained or produced entirely in the territory of a Party:
(a) plants, plant goods and vegetable goods harvested, picked or gathered in that Party;
(b) live animals born and raised in that Party;
(c) goods obtained from live animals referred to in subparagraph (b);