Title
TRADE AGREEMENT BETWEEN THE ARGENTINE REPUBLIC AND THE REPUBLIC OF CHILE
Preamble
The Government of the Republic of Chile ("Chile") and the Government of the Republic of Argentina ("Argentina"), hereinafter referred to as the "Parties", resolved to:
DEEPEN special ties of friendship and cooperation;
EXPAND trade and promote its harmonious development, foster greater international cooperation and strengthen economic relations between their peoples for mutual benefit;
CREATE a more open, secure and predictable market for trade in goods and services and reciprocal investments, in order to facilitate the planning of business activities;
AVOID distortions and non-tariff trade barriers and other restrictive measures in reciprocal trade;
DEVELOP their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization, as well as other multilateral and bilateral cooperation instruments;
PROMOTE the incorporation of the gender perspective in international trade, encouraging equal rights, treatment and opportunities between men and women in business, industry and the world of work, promoting inclusive economic growth for the societies of both countries;
PROMOTE and FACILITATE contacts between the companies and private sectors of both Parties;
ROBUSTIFY your company's competitiveness in global markets;
ENSURE compliance with the labor laws and practices of each Party, strengthening cooperation in labor matters;
IMPLEMENT this Agreement in a manner consistent with the protection and conservation of the environment, including through the management of natural resources in their respective territories, in accordance with the environmental legislation of each Party and with the multilateral environmental agreements to which the Republic of Argentina and the Republic of Chile are parties;
PROMOTE sustainable development;
HAVE AGREED as follows:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. Initial Provisions
1. The Parties, in accordance with the Treaty of Montevideo of 1980 and Article V of the GATS, decide to deepen and extend the bilateral legal framework of the expanded economic space established by the Economic Complementation Agreement No. 35, in accordance with the provisions of this Agreement.
2. The Parties recognize the coexistence of this Agreement with the existing international agreements to which they are party; in such sense:
(a) Each Party confirms its rights and obligations with respect to the other Party in relation to existing international agreements to which both Parties are party, including the WTO Agreement.
(b) If a Party considers that a provision of this Agreement is inconsistent (1) with a provision of another agreement to which both Parties are party, upon request, the Parties shall consult with a view to reaching a mutually satisfactory solution. This paragraph applies without prejudice to the rights and obligations of the Parties under Chapter 18 (Dispute Settlement).
Article 1.2. General Definitions
For the purposes of this Agreement, unless otherwise specified in this Agreement:
ACE N° 35 means Mercosur - Chile Economic Complementation Agreement N° 35;
Agreement means the Trade Agreement between the Republic of Chile and the Republic of Argentina;
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on April 15, 1994;
GATS means the General Agreement on Trade in Services contained in Annex 1B of the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 contained in Annex 1A of the WTO Agreement;
goods means a commodity, product or merchandise;
Bilateral Administrative Commission means the Bilateral Administrative Commission of the Agreement established pursuant to Article 17.1 (Bilateral Administrative Commission);
days means calendar days, including weekends and public holidays; measure includes any law, regulation, procedure, requirement or practice; national means a natural person who has the nationality of a Party:
(a) In the case of Chile, a Chilean as defined in Article 10 of the Political Constitution of the Republic of Chile, and
(b) In the case of Argentina, an Argentine as defined in Law No. 346, as amended;
WTO means the World Trade Organization; person means a natural person or a legal entity;
person of a Party means a natural person who is a national or a permanent resident of a Party, or a legal person of a Party;
SMEs means small and medium-sized enterprises, including microenterprises;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes and Chapter Notes, as adopted and applied by the Parties in their respective legislation; and
territory means:
(a) For Chile, the land, maritime and air space under its sovereignty, and the exclusive economic zone and continental shelf over which it exercises sovereign rights and jurisdiction in accordance with international law and its internal legislation;
(b) In the case of the Argentine Republic, the territory subject to the sovereignty of the Argentine Republic in accordance with its constitutional and legal provisions, as well as the exclusive economic zone and the continental shelf in respect of which the Argentine Republic exercises sovereign rights and jurisdiction, in accordance with its constitutional and legal provisions and international law.
Chapter 2. FACILITATION OF COMMERCE
Article 2.1. Customs Procedures and Trade Facilitation
Each Party shall ensure that its customs procedures are applied in a predictable, uniform and transparent manner, and shall apply information technology to make its controls more efficient and facilitate legitimate trade.
Article 2.2. Publication
1. Each Party shall publish on the Internet and in other media its customs legislation, regulations and procedures, including information on customs import, export and transit procedures, as well as required forms and documents.
2. Each Party shall designate or maintain, within its available resources, one or more points of contact for customs inquiries and shall make available on the Internet easily accessible information on the mechanism for making such inquiries.
Article 2.3. Opportunity to Submit Comments Prior to the Entry Into Force of Customs Tulings of General Application
Each Party shall, to the extent possible, provide opportunities and adequate time for interested persons involved in foreign trade to comment on proposals for the introduction or modification of customs rulings of general application relating to customs procedures prior to their entry into force. In no case shall such comments be binding on the customs administration.
Article 2.4. Advance Rulings
1. Each Party shall issue, prior to the importation of goods into its territory, an advance ruling, upon written request of an importer in its territory or of an exporter or producer in the territory of the other Party.
2. In the case of an exporter or producer in the territory of the other Party, the exporter or producer must apply through a representative established in the territory of the Party to whom the application is addressed.
3. Advance Rulings will be issued with respect to:
(a) The tariff classification of the merchandise;
However, the Parties are encouraged, in addition to the advance rulings defined in paragraph (a), to issue advance rulings with respect to:
(b) The application of customs valuation criteria for a particular case, in accordance with the provisions contained in the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994;
(c) The application of refunds, deferrals or other exemptions from the payment of customs duties, and
(d) Such other matters as the Parties may agree.
4. Each Party shall issue an advance ruling, within a reasonable and specified period of time, provided that the applicant has submitted all the information required by the Party.
5. The advance ruling shall be valid from the date of its issuance, unless a later date is specified in the ruling, and shall remain in effect as long as the facts or circumstances on which it is based have not changed.
6. The Party issuing the advance ruling may modify or revoke it, ex officio or at the request of the party that requested it, as appropriate, in the following cases:
(a) When the anticipated resolution has been based on an error;
(b) When the circumstances or the facts on which it is based change, or
(c) To comply with an administrative or judicial decision, or to comply with a change in the legislation of the Party that issued the decision.
7. No Party shall retroactively apply a revocation or modification to the detriment of the applicant, unless the determination was based on incomplete, inaccurate or false information provided by the applicant.
8. Subject to confidentiality requirements under its legal system, each Party shall make publicly available, including on the Internet, the advance rulings it issues.
9. The Party issuing the advance ruling may apply appropriate sanctions or measures, including civil, criminal and administrative actions, if the applicant provided false information or omitted relevant facts or circumstances related to the advance ruling or failed to act in accordance with the terms and conditions of the advance ruling.
Article 2.5. Review and Appeal
Each Party shall ensure, with respect to its administrative acts in customs matters, that any person subject to such acts in its territory has access to:
(a) An administrative review before an administrative authority independent or superior to the official or office that issued such administrative act, and
(b) A judicial review of administrative acts.
Article 2.6. Clearance of Goods
1. Each Party shall adopt or maintain simplified customs procedures for the efficient clearance of goods to facilitate legitimate trade between the Parties.
2. Pursuant to paragraph 1, each Party shall adopt or maintain procedures that:
(a) Provide for clearance to be made within a period no longer than that required to ensure compliance with customs legislation. Each Party shall continue to work on reducing clearance times, and
(b) Allow, to the extent permitted by their legal system and provided that all regulatory requirements have been met, the goods to be cleared at the point of arrival, without temporary transfer to warehouses or other premises.
3. Each Party shall ensure, to the extent possible, that its competent authorities in the control of import and export operations of the goods coordinate, inter alia, the requirements for information and documents, establishing a single time for physical verification, without prejudice to the controls that may apply in the case of post-clearance audits.
4. The Parties undertake, to the extent possible, to calculate and publish the average time required for the clearance of goods, periodically and in a uniform manner, using tools such as the "Guide for the Measurement of the Time Required for the Clearance of Goods" adopted by the Standing Technical Committee of the World Customs Organization (hereinafter referred to as the "WCO").
Article 2.7. Automation
1. Each Party shall endeavor to use information technologies that expedite the procedures for the clearance of goods.
2. To this end, the Parties:
(a) They will strive to use international standards and make electronic systems user-friendly for foreign trade operators, where appropriate;
(b) They shall provide for the electronic transmission and processing of information and data prior to the arrival of the shipment, in order to allow the clearance of the goods upon arrival;
(c) Commit to advance in the implementation of the "Standard on the Computerization of the International Cargo Manifest/Customs Transit Declaration and in the Monitoring of the Transit Operation of Goods" between both countries under the 1990 Agreement on International Land Transport (ATIT);
(d) They shall provide for the processing of customs import and export operations through electronic documents and the possibility of digitalization of documents supporting customs declarations, as well as the use of validation mechanisms, previously agreed upon by the customs administration of both Parties, for the secure electronic exchange of information;
(e) Adopt procedures that allow the option of electronic payment of duties, taxes, fees and charges determined by the customs administration that acctue at the time of import and export;
(f) They will preferably use electronic or automated systems for risk analysis and management;
(g) Work towards the interoperability of the electronic systems of the Parties' customs administrations in order to facilitate the exchange of international trade data, ensuring the same levels of confidentiality and data protection as those provided for in each Party's legal system; and
(h) They will work to develop a set of common data elements and process in accordance with the WCO Data Model and its recommendations and guidelines in the development of their import, export and transit formalities and procedures.
3. In order to comply with the provisions of subparagraphs (d) and (g), the Parties, through their customs administrations, shall make progress in the exchange of previously agreed data contained in their computer systems in the format of the MERCOSUR Customs Registry Information Exchange System (INDIRA).
Article 2.8. Certification of Digital Origin
The Parties undertake to move forward, both internally and bilaterally, in the implementation of the digital Certification of Origin under the terms of the provisions of Resolution No. 386 of 2011 of the Latin American Integration Association (ALADD), understanding that the progressive replacement of paper certificates of origin by digital certificates of origin will contribute to the facilitation of trade between both Parties.
Article 2.9. Acceptance of Copies
1. Each Party shall endeavor, where appropriate, to accept paper or electronic copies of supporting documents required for import, export or transit formalities.
2. Where the original of a supporting document is held by a government agency of a Party, any other agency of that Party shall accept, where appropriate, in lieu of the original document, a printed or electronic copy provided by the agency holding the original.
Article 2.10. Single Windows for Foreign Trade
The Parties shall seek to implement and/or strengthen their Foreign Trade Single Windows (SW) for the expediting and facilitation of trade and shall strive to achieve their interoperability in order to exchange information that will expedite bilateral trade.
Article 2.11. Risk Management Systems
1. Each Party shall adopt or maintain risk management or administration systems using, preferably, computerized procedures for the automated processing of information, which allow its customs administration to concentrate its control activities on high-risk goods and simplify the clearance and movement of low-risk goods, while respecting the confidentiality of the information obtained through such activities.
2. The customs administrations of each Party shall apply selective control for the release of goods based on risk analysis criteria, using, among others, non-intrusive means of inspection and tools incorporating modern technologies, with the aim of reducing the physical inspection of goods entering its territory.
Article 2.12. Authorized Economic Operator
1. The customs administrations of the Parties shall promote the implementation and strengthening of the Authorized Economic Operator (AEO) Programs, of
The WCO Framework of Standards to Secure and Facilitate Global Trade ("SAFE Framework").
2. To this end, the Parties undertake to exchange information on the current status of their respective programs, in order to evaluate the development of an action plan with a view to reaching a mutual recognition agreement.
Article 2.13. Cooperation and Mutual Assistance In Customs Matters
The Parties reaffirm their commitment to cooperation and mutual assistance to ensure compliance with customs legislation, the facilitation of customs procedures and the prevention, investigation and repression of customs offenses through their customs administrations and in accordance with existing legal instruments.
Article 2.14. Confidentiality
The Parties undertake to treat confidentially the information they provide to each other, guaranteeing each other the same level of confidentiality and data protection as that provided for in the legal system of the Party providing the information.
Chapter 3. ENTREPRENEURS AND MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES
Article 3.1. General Provisions
1. The Parties recognize that Entrepreneurs and Micro, Small and Medium Enterprises (hereinafter referred to as MSMEs) constitute a fundamental component for economic development, job creation and value added.
2. The Parties recognize the importance of fostering, designing and implementing public policies aimed at promoting productivity and increasing the competitiveness of MSMESs of both Parties.
3. The Parties recognize the importance of improving the access of MSMEs of each Party to existing business opportunities within the territories of the other Party, in order to ensure and expand their participation in the national and international economy and contribute to fostering sustainable economic development.
4. The Parties recognize the importance of dialogue, in order to assess the promotion and improvement of MSMEs participation in trade, to support their growth and development and to take advantage of the opportunities arising from this Agreement. 5. Likewise, the Parties affirm their commitment to implement good practices related to MSMEs in their legal systems and public policies.
Article 3.2. Transparency
Each Party shall promote domestically, through such channels as it deems appropriate, the public dissemination of its laws, regulations, public policies and programs relating to the development of MSMEs.
Article 3.3. Activities and Forms of Cooperation
The Parties recognize the importance of defining a joint strategy for cooperation in the area of MSMEs, in relation to the following topics:
(a) Exchange of best practices on public policies, experiences and know-how in MSME assistance programs and tools.
(b) Design, implementation and monitoring of public policies to improve the productivity and competitiveness of MSMEs with emphasis on their internationalization.
(c) Strengthening the entrepreneurial culture and national entrepreneurship and innovation ecosystems to ensure the emergence and consolidation of a productive MSME network with high growth potential in both countries.
Article 3.4. Micro, Small and Medium-Sized Enterprise Committee
1. The Parties establish the Committee on Micro, Small and Medium-Sized Enterprises (hereinafter referred to as the MSME Committee), which shall be composed of government representatives of each Party:
(a) In the case of Argentina, by representatives of the Secretariat of Entrepreneurs and SMEs of the Ministry of Production, or its successor.
(b) In the case of Chile, by representatives of the Ministry of Economy, Development and Tourism, or its successor.
2. The MSME Committee shall be responsible for the promotion and follow-up of the activities agreed upon within the framework of this Chapter.
3. The functions of the MSME Committee shall be
(a) To encourage, guarantee, promote the management and coordinate the activities agreed upon in this Chapter.
(b) Exchange information on the progress of actions and projects of common interest arising from this Chapter.
(c) Periodically evaluate the progress and general operation of the provisions of this Chapter.
(d) Submit regular reports on the activities carried out within the scope of the MSME Committee to the Bilateral Administrative Commission.
4. The Committee shall meet at least once a year from the time this Agreement enters into force, unless otherwise agreed by the Parties.
Article 3.5. Consultations
The Parties shall make every effort through dialogue, consultation and cooperation to resolve any issues that may arise regarding the interpretation and application of this Chapter.
Article 3.6. Exclusion from the Dispute Settlement Mechanism
1. No Party may have recourse to the dispute settlement mechanism under Chapter 18 (Dispute Settlement) with respect to any matter arising under this Chapter.
2. This Chapter shall not be used to impose obligations or commitments with respect to other Chapters of this Agreement.
Chapter 4. SANITARY AND PHYTOSANITARY MEASURES
Article 4.1. General Provisions
In order to facilitate the exchange of agricultural and agrifood goods and within the framework of mutual cooperation, the Parties reiterate their commitment to implement the Agreement on the Application of Sanitary and Phytosanitary Measures of the World Trade Organization (hereinafter referred to as the "WTO/SPS Agreement") and the Decisions adopted within the framework of the Committee on Sanitary and Phytosanitary Measures of the World Trade Organization (hereinafter referred to as the WTO/SPS Committee).
Article 4.2. Objectives
The objectives of this Chapter are:
(a) To protect the health and life of people, animals and plants in the territory of each Party, while facilitating trade between the Parties;
(b) Ensure that the Parties' sanitary and phytosanitary measures do not create unjustified barriers to trade;
(c) To promote the implementation of the SPS/WTO Agreement and the standards, guidelines and recommendations developed by the international reference organizations identified by the SPS/WTO Agreement; and
(d) Provide the means to improve communication, cooperation and resolve any SPS difficulties arising from the implementation of this Chapter.
Article 4.3. Scope of Application
This Chapter applies to all sanitary and phytosanitary measures adopted or applied by a Party that may, directly or indirectly, affect trade between the Parties.