issues an administrative decision5
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.
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 cases
where the decision on appeal or review under paragraph 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.6
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.
5
An administrative decision in this Article means a decision with a legal effect that affects the rights and obligations of a specific person in an individual case. It shall be understood that an administrative decision in this Article covers an administrative action within the meaning of Article X of GATT 1994 or failure to take an administrative action or decision as provided for in a Party's law and legal system. For addressing such failure, each Party may maintain an alternative administrative mechanism or judicial recourse to direct the customs authority to promptly issue an administrative decision in place of the right to appeal or review under paragraph 1(a).
6
Nothing in this paragraph shall prevent a Party from recognizing administrative silence on appeal or review as a decision in favor of the petitioner in accordance with its laws and regulations.
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6.
Each Party shall ensure that the person referred to in paragraph 1 is not treated unfavorably
merely because that person seeks review of an administrative decision or omission referred to in paragraph 1.
7.
Each Party is encouraged to make the provisions of 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 5.19: Customs Cooperation
1.
The customs authority of each Party may, as deemed appropriate, assist the customs authority of
the
other Party, 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 harmonizing 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 Party 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 English or the Party?s language.
3.
The customs authority of a Party may, as deemed appropriate, share with the other Party, information and experiences on development of customs administration.
4.
The customs authorities of the Parties shall actively cooperate to resolve difficulties arising during the import and export clearance
in each Party.
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Article 5.20: Consultation on Customs Procedures and Trade Facilitation
1.
A Party may at any time request consultations regarding any significant customs matter arising from the operation or implementation of this Chapter, providing relevant details related to the matter. Such consultation shall be conducted through the contact points and shall commence within 30 days following the date of the receipt of the request, unless the 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 Rules of Origin and Customs Procedures.
3.
A Party shall designate one or more contact points for purposes of this Chapter. Information on the contact points shall be provided to the other Party and any changes of the said information shall be notified promptly.
Article 5.21:
Committee on Rules of Origin and Customs Procedures
1.
The Parties hereby establish a Committee on Rules of Origin and Customs Procedures (hereinafter referred to as the ?Committee?), composed of the competent authorities and relevant government authorities7
of the Parties. The Committee shall be responsible for addressing rules of origin, origin procedures, trade facilitation, and customs matters.
2.
The Committee shall ensure the proper functioning of this Chapter and Chapter Four (Rules
of Origin).
3.
The functions of the Committee shall include:
(a)
ensuring the effective, uniform, and consistent administration of this Chapter and Chapter Four (Rules of Origin);
(b)
revising Annex 4-B (Product Specific Rules) on the basis of the transposition of the HS and national nomenclatures;
(c)
adopting customs practices and standards which facilitate commercial exchange between the Parties, according to the international standards;
7
For purposes of this Article, ?relevant government authorities? refers
to Philippine agencies responsible for monitoring, reviewing, analyzing, and developing policies on matters relating to Chapter Four
(Rules of Origin).
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(d)
resolving any issues relating
to
the
interpretation, application, and administration
of this Chapter and Chapter Four
(Rules of Origin), including tariff classification;
(e)
presenting proposals for the
approval
of the Joint Committee on the modifications of this Chapter and Chapter Four
(Rules of Origin), including Annex 4-B
(Product Specific
Rules of Origin), in the event a consensus is reached between the Parties;
(f)
working on the possible development of an electronic certification and
verification system;
(g)
regularly exchanging
statistics in order to assess the utilization of preference under this Agreement and holding
consultations
in respect of this matter;
(h)
advising the Joint Committee of proposed solutions to address issues relating to:
(i)
interpretation, application, and administration of this Chapter and Chapter Four (Rules of Origin);
(ii)
tariff classification and customs valuation;
(iii)
calculation of the regional value content; and
(iv)
issues arising from
the adoption by a Party of operational practices not
in conformity with this Chapter and Chapter Four (Rules
of Origin)
which
may adversely affect the flow of trade between the Parties; and
(i)
carrying out other functions as may be delegated by the Joint Committee or as necessary.
4.
The Committee may formulate resolutions, recommendations,
or opinions which it considers necessary for the attainment of the common objectives and the functions of the mechanisms established under this Chapter and Chapter Four (Rules of Origin).
5.
The Committee shall meet every year or as otherwise agreed.
6.
The Committee shall report to the Joint Committee on the results of each of its meetings.
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Chapter SIX. COMPETITION
Article 6.1: Definitions
For purposes of this Chapter:
Competition authority means:
(a)
for the Philippines, the Philippine Competition Commission, or its successor; and
(b)
for Korea, the Korea Fair Trade Commission, or its successor.
Competition laws means: