(ii) in the tariff classification of a good or a material that is the subject of the ruling,
(iii) in the application of a regional value content requirement under Chapter Four,
(iv) in the application of the rules for determining whether a good qualifies as a good of a Party under Annex 300B, 302.2 or Chapter Seven,
(v) in the application of the rules for determining whether a good is a qualifying good under Chapter Seven, or
(vi) in the application of the rules for determining whether a good that re- enters its territory after the good has been exported from its territory to the territory of another Party for repair or alteration qualifies for dutyfree treatment under Article 307;
b) if the ruling is not in accordance with an interpretation agreed by the Parties regarding Chapter Three (National Treatment and Market Access for Goods) or Chapter Four;
c) if there is a change in the material facts or circumstances on which the ruling is based;
d) to conform with a modification of Chapter Three, Chapter Four, this Chapter, Chapter Seven, the Marking Rules or the Uniform Regulations; or
e) to conform with a judicial decision or a change in its domestic law.
7. Each Party shall provide that any modification or revocation of an advance ruling shall be effective on the date on which the modification or revocation is issued, or on such later date as may be specified therein, and shall not be applied to importations of a good that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted in accordance with its terms and conditions.
8. Notwithstanding paragraph 7, the issuing Party shall postpone the effective date of such modification or revocation for a period not exceeding 90 days where the person to whom the advance ruling was issued demostrates that it has relied in good faith to its detriment on that ruling.
9. Each Party shall provide that where its customs administration examines the regional value content of a good for which it has issued an advance ruling pursuant to subparagraph 1(c), (d) or f), it shall evaluate whether:
a) the exporter or producer has complied with the terms and conditions of the advance ruling;
b) the exporter's or producer's operations are consistent with the material facts and circumstances on which the advance ruling is based; and
c) the supporting data and computations used in applying the basis or method for calculating value or allocating cost were correct in all material respects.
10. Each Party shall provide that where its customs administration determines that any requirement in paragraph 9 has not been satisfied, it may modify or revoke the advance ruling as the circumstances may warrant.
11. Each Party shall provide that, where the person to whom an advance ruling was issued demonstrates that it used reasonable care and acted in good faith in presenting the facts and circumstances on which the ruling was based, and where the customs administration of a Party determines that the ruling was based on incorrect information, the person to whom the tuling was issued shall not be subject to penalties.
12, Each Party shall provide that where it issues an advance ruling to a person that has misrepresented or omitted material facts or circumstances on which the ruling is based or has failed to act in accordance with the terms and conditions of the ruling, the Party may apply such measures as the circumstances may warrant.
Section D. Review and Appeal of Origin Determinations and Advance Rulings
Article 510. Review and Appeal
1. Each Party shall grant substantially the same rights of review and appeal of marking determinations of origin, country of origin determinations and advance rulings by its customs administration as it provides to importers in its territory to any person:
a) who completes and signs a Certificate of Origin for a good that has been the subject of a determination of origin;
b) whose good has been the subject of a country of origin marking determination pursuant to Article 311 (Country of Origin Marking); or
c) who has received an advance ruling pursuant to Article 509(1).
2. Further to Articles 1804 (Administrative Proceedings) and 1805 (Review and Appeal), each Party shall provide that the rights of review and appeal referred to in paragraph 1 shall include access to:
a) at least one level of administrative review independent of the official or office responsible for the determination under review; and
b) in accordance with its domestic law, judicial or quasijudicial review of the determination or decision taken at the final level of administrative review.
Section E. Uniform Regulations
Article 511. Uniform Regulations
1. The Parties shall establish, and implement through their respective laws or regulations by January 1, 1994, Uniform Regulations regarding the interpretation, application and administration of Chapter Four, this Chapter and other matters as may be agreed by the Parties.
2. Each Party shall implement any modification of or addition to the Uniform Regulations no later than 180 days after the Parties agree on such modification or addition, or such other period as the Parties may agree.
Section F. Cooperation
Article 512. Cooperation
1. Each Party shall notify the other Parties of the following determinations, measures and rulings, including to the greatest extent practicable those that are prospective in application:
a) a determination of origin issued as the result of a verification conducted pursuant to Article 506(1);
b) a determination of origin that the Party is aware is contrary to
(i) a ruling issued by the customs administration of another Party with respect to the tariff classification or value of a good, or of materials used in the production of a good, or the reasonable allocation of costs where calculating the net cost of a good, that is the subject of a determination of origin, or
(ii) consistent treatment given by the customs administration of another Party with respect to the tariff classification or value of a good, or of materials used in the production of a good, or the reasonable allocation of costs where calculating the net cost of a good, that is the subject of a determination of origin;
c) a measure establishing or significantly modifying an administrative policy that is likely to affect future determinations of origin, country of origin marking requirements or determinations as to whether a good qualifies as a good of a Party under the Marking Rules; and
d) an advance ruling, or a ruling modifying or revoking an advance ruling, pursuant to Article 509.
2. The Parties shall cooperate:
a) in the enforcement of their respective customs-related laws or regulations implementing this Agreement, and under any customs mutual assistance agreements or other customsrelated agreement to which they are party;
b) for purposes of the detection and prevention of unlawful transshipments of textile and apparel goods of a non-Party, in the enforcement of prohibitions or quantitative restrictions, including the verification by a Party, in accordance with the procedures set out in this Chapter, of the capacity for production of goods by an exporter or a producer in the territory of another Party, provided that the customs administration of the Party proposing to conduct the verification, prior to conducting the verification
(i) obtains the consent of the Party in whose territory the verification is to occur, and
(ii) provides notification to the exporter or producer whose premises are to be visited,
except that procedures for notifying the exporter or producer whose premises are to be visited shall be in accordance with such other procedures as the Parties may agree;
c) to the extent practicable and for purposes of facilitating the flow of trade between them, in such customs related matters as the collection and exchange of statistics regarding the importation and exportation of goods, the harmonization of documentation used in trade, the standardization of data elements, the acceptance of an international data syntax and the exchange of information; and
d) to the extent practicable, in the storage and transmission of customs-related documentation.
Article 513. Working Group and Customs Subgroup
1. The Parties hereby establish a Working Group on Rules of Origin, comprising representatives of each Party, to ensure:
a) the effective implementation and administration of Articles 303 (Restriction on Drawback and Duty Deferral Programs), 308 (Most-Favored-Nation Rates of Duty on Certain Goods) and 311, Chapter Four, this Chapter, the Marking Rules and the Uniform Regulations; and
b) the effective administration of the customsrelated aspects of Chapter Three.
2. The Working Group shall meet at least four times each year and on the request of any Party.
3. The Working Group shall:
a) monitor the implementation and administration by the customs administrations of the Parties of Articles 303, 308 and 311, Chapter Four, this Chapter, the Marking Rules and the Uniform Regulations to ensure their uniform interpretation;
b) endeavor to agree, on the request of any Party, on any proposed modification of or addition to Article 303, 308 or 311, Chapter Four, this Chapter, the Marking Rules or the Uniform Regulations;
c) notify the Commission of any agreed modification of or addition to the Uniform Regulations;
d) propose to the Commission any modification of or addition to Article 303, 308 or 311, Chapter Four, this Chapter, the Marking Rules, the Uniform Regulations or any other provision of this Agreement as may be required to conform with any change to the Harmonized System; and
e) consider any other matter referred to it by a Party or by the Customs Subgroup established under paragraph 6.
4. Each Party shall, to the greatest extent practicable, take all necessary measures to implement any modification of or addition to this Agreement within 180 days of the date on which the Commission agrees on the modification or addition.
5. If the Working Group fails to resolve a matter referred to it pursuant to paragraph 3(e) within 30 days of such referral, any Party may request a meeting of the Commission under Article 2007 (Commission Good Offices, Conciliation and Mediation).
6. The Working Group shall establish, and monitor the work of, a Customs Subgroup, comprising representatives of each Party. The Subgroup shall meet at least four times each year and on the request of any Party and shall:
a) endeavor to agree on
(i) the uniform interpretation, application and administration of Articles 303, 308 and 311, Chapter Four, this Chapter, the Marking Rules and the Uniform Regulations,
(ii) tariff classification and valuation matters relating to determinations of origin,
(iii) equivalent procedures and criteria for the request, approval, modification, revocation and implementation of advance rulings,
(iv) revisions to the Certificate of Origin,
(v) any other matter referred to it by a Party, the Working Group or the Committee on Trade in Goods established under Article 316, and
(vi) any other customs-related matter arising under this Agreement; b) consider
(i) the harmonization of customs-related automation requirements and documentation, and
(ii) proposed customs-related administrative and operational changes that may affect the flow of trade between the Parties' territories;
c) report periodically to the Working Group and notify it of any agreement reached under this paragraph; and
d) refer to the Working Group any matter on which it has been unable to reach agreement within 60 days of referral of the matter to it pursuant to subparagraph (a)(v).
7. Nothing in this Chapter shall be construed to prevent a Party from issuing a determination of origin or an advance ruling relating to a matter under consideration by the Working Group or the Customs Subgroup or from taking such other action as it considers necessary, pending a resolution of the matter under this Agreement.
Article 514. Definitions
For purposes of this Chapter:
commercial importation means the importation of a good into the territory of any Party for the purpose of sale, or any commercial, industrial or other like use;
customs administration means the competent authority that is responsible under the law of a Party for the administration of customs laws and regulations;
determination of origin means a determination as to whether a good qualifies as an originating good in accordance with Chapter Four;
exporter in the territory of a Party means an exporter located in the territory of a Party and an exporter required under this Chapter to maintain records in the territory of that Party regarding exportations of a good;
identical goods means goods that are the same in all respects, including physical characteristics, quality and reputation, irrespective of minor differences in appearance that are not relevant to a determination of origin of those goods under Chapter Four; importer in the territory of a Party means an importer located in the territory of a Party and an importer required under this Chapter to maintain records in the territory of that Party regarding importations of a good;
intermediate material means "intermediate material" as defined in Article 415; Marking Rules means "Marking Rules" established under Annex 311;
material means "material" as defined in Article 415;
net cost of a good means "net cost of a good" as defined in Article 415; preferential tariff treatment means the duty rate applicable to an originating good; producer means "producer" as defined in Article 415;
production means "production" as defined in Article 415;
transaction value means "transaction value" as defined in Article 415;
Uniform Regulations means "Uniform Regulations" established under Article 511; used means "used" as defined in Article 415; and
value means value of a good or material for purposes of calculating customs duties or for purposes of applying Chapter Four.
Chapter Six. ENERGY AND BASIC PETROCHEMICALS
Article 601. Principles
1. The Parties confirm their full respect for their Constitutions.
2. The Parties recognize that it is desirable to strengthen the important role that trade in energy and basic petrochemical goods plays in the free trade area and to enhance this role through sustained and gradual liberalization.
3. The Parties recognize the importance of having viable and internationally competitive energy and petrochemical sectors to further their individual national interests.
Article 602. Scope and Coverage
1. This Chapter applies to measures relating to energy and basic petrochemical goods originating in the territories of the Parties and to measures relating to investment and to the cross-border trade in services associated with such goods, as set forth in this Chapter
2. For purposes of this Chapter, energy and basic petrochemical goods refer to those goods classified under the Harmonized System as:
a) subheading 2612.10;
b) headings 27.01 through 27.06;
c) subheading 2707.50;
d) subheading 2707.99 (only with respect to solvent naphtha, rubber extender oils and carbon black feedstocks);
e) headings 27.08 and 27.09;
f) heading 27.10 (except for normal paraffin mixtures in the range of C9 to C15);
g) heading 27.11 (except for ethylene, propylene, butylene and butadiene in purities over 50 percent);
h) headings 27.12 through 27.16;
i) subheadings 2844.10 through 2844.50 (only with respect to uranium compounds classified under those subheadings);
j) subheading 2845.10; and
k) subheading 2901.10 (only with respect to ethane, butanes, pentanes, hexanes, and heptanes).
3. Except as specified in Annex 602.3, energy and petrochemical goods and activities shall be governed by the provisions of this Agreement.
Article 603. Import and Export Restrictions
1 Subject to the further rights and obligations of this Agreement, the Parties incorporate the provisions of the General Agreement on Tariffs and Trade (GATT), with respect to prohibitions or restrictions on trade in energy and basic petrochemical goods. The Parties agree that this language does not incorporate their respective protocols of provisional application to the GATT.
2. The Parties understand that the provisions of the GATT incorporated in paragraph 1 prohibit, in any circumstances in which any other form of quantitative restriction is prohibited, minimum or maximum export - price requirements and, except as permitted in enforcement of countervailing and antidumping orders and undertakings, minimum or maximum import-price requirements.
3. In circumstances where a Party adopts or maintains a restriction on importation from or exportation to a non-Party of an energy or basic petrochemical good, nothing in this Agreement shall be construed to prevent the Party from:
a) limiting or prohibiting the importation from the territory of any Party of such energy or basic petrochemical good of the nonParty; or
b) requiring as a condition of export of such energy or basic petrochemical good of the Party to the territory of any other Party that the good be consumed within the territory of the other Party.
4. In the event that a Party adopts or maintains a restriction on imports of an energy or basic petrochemical good from non-Party countries, the Parties, on request of any Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing and distribution arrangements in another Party.
5. Each Party may administer a system of import and export licensing for energy or basic petrochemical goods provided that such system is operated in a manner consistent with the provisions of this Agreement, including paragraph 1 and Article 1502 (Monopolies and State Enterprises).
6. This Article is subject to the reservations set out in Annex 603.6.
Article 604. Export Taxes
No Party may adopt or maintain any duty, tax or other charge on the export of any energy or basic petrochemical good to the territory of another Party, unless such duty, tax or charge is adopted or maintained on:
a) exports of any such good to the territory of all other Parties; and
b) any such good when destined for domestic consumption.
Article 605. Other Export Measures
Subject to Annex 605, a Party may adopt or maintain a restriction otherwise justified under Articles XI:2(a) or XX(g), G) or (j) of the GATT with respect to the export of an energy or basic petrochemical good to the territory of another Party, only if:
a) the restriction does not reduce the proportion of the total export shipments of the specific energy or basic petrochemical good made available to that other Party relative to the total supply of that good of the Party maintaining the restriction as compared to the proportion prevailing in the most recent 36 month period for which data are available prior to the imposition of the measure, or in such other representative period on which the Parties may agree;
b) the Party does not impose a higher price for exports of an energy or basic petrochemical good to that other Party than the price charged for such good when consumed domestically, by means of any measure such as licenses, fees, taxation and minimum price requirements. The foregoing provision does not apply to a higher price that may result from a measure taken pursuant to subparagraph (a) that only restricts the volume of exports; and
c) the restriction does not require the disruption of normal channels of supply to that other Party or normal proportions among specific energy or basic petrochemical goods supplied to that other Party, such as, for example, between crude oil and refined products and among different categories of crude oil and of refined products.
Article 606. Energy Regulatory Measures
1. The Parties recognize that energy regulatory measures are subject to the disciplines of:
a) national treatment, as provided in Article 301;
b) import and export restrictions, as provided in Article 603; and
c) export taxes, as provided in Article 604.
2. Each Party shall seek to ensure that in the application of any energy regulatory measure, energy regulatory bodies within its territory avoid disruption of contractual relationships to the maximum extent practicable, and provide for orderly and equitable implementation appropriate to such measures.
Article 607. National Security Measures
Subject to Annex 607, no Party may adopt or maintain a measure restricting imports of an energy or basic petrochemical good from, or exports of an energy or basic petrochemical good to, another Party under Article XXI of the GATT or under Article 2102 (National Security), except to the extent necessary to:
a) supply a military establishment of a Party or enable fulfillment of a critical defense contract of a Party;
b) respond to a situation of armed conflict involving the Party taking the measure;
c) implement national policies or international agreements relating to the non- proliferation of nuclear weapons or other nuclear explosive devices; or
d) respond to direct threats of disruption in the supply of nuclear materials for defense purposes.
Article 608. Miscellaneous Provisions
1. The Parties agree to allow existing or future incentives for oil and gas exploration, development and related activities in order to maintain the reserve base for these energy resources.
2. Annex 608.2 applies only to the Parties specified in that Annex with respect to other agreements relating to trade in energy goods.
Article 609. Definitions
For purposes of this Chapter:
consumed means transformed so as to qualify under the rules of origin set out in Chapter Four (Rules of Origin), or actually consumed;
cross-border trade in services means "crossborder trade in services" as defined in Article 1213 (Cross-Border Trade in Services Definitions);
energy regulatory measure means any measure by federal or sub-federal entities that directly affects the transportation, transmission or distribution, purchase or sale, of an energy or basic petrochemical good;
enterprise means "enterprise" as defined in Article 1139 (Investment-Definitions); enterprise of a Party means "enterprise of a Party" as defined in Article 1139; facility for independent power production means a facility that is used for the generation of electric energy exclusively for sale to an electric utility for further resale;
first hand sale refers to the first commercial transaction affecting the good in question;
first hand sale refers to the first commercial transaction affecting the good in question;
investment means investment as defined in Article 1139;