(b) ensure that the Parties' sanitary and phytosanitary ("SPS") measures do not create unjustified barriers to trade; and
(c) further the implementation of the SPS Agreement.
Article 5.3. Scope
This Chapter applies to SPS measures that may, directly or indirectly, affect trade between the Parties.
Article 5.4. Rights and Obligations
The Parties affirm their rights and obligations under the SPS Agreement.
Article 5.5. Adaptation to Regional Conditions
1. With respect to an animal, animal product and animal by-product:
(a) the Parties recognise the concept of zoning and they have decided to apply this concept to the diseases listed in Annex 5-B;
(b) if the Parties decide on principles and guidelines to recognise regional conditions, they shall include them in Annex 5-C;
(c) for the purpose of subparagraph (a), the importing Party shall base its sanitary measure applicable to the exporting Party whose territory is affected by a disease listed in Annex 5-B on the zoning decision made by the exporting Party, provided that the importing Party is satisfied that the exporting Party's zoning decision is in accordance with the principles and guidelines that the Parties set out in Annex 5-C, and is based on relevant international standards, guidelines, and recommendations. The importing Party may apply any additional measure to achieve its appropriate level of sanitary protection;
(d) if a Party considers that it has a special status with respect to a disease not listed in Annex 5-B, it may request recognition of that status. The importing Party may request additional guarantees for imports of live animals, animal products, and animal by-products appropriate to the agreed status recognised by the importing Party, including the special conditions identified in Annex 5-E; and
(e) the Parties recognise the concept of compartmentalisation and agree to cooperate on this matter.
2. With respect to a plant and plant product:
(a) when the importing Party establishes or maintains its phytosanitary measure, it shall take into account, among other things, the pest status of an area, such as a pest-free area, pest-free place of production, pest-free production site, an area of low pest prevalence and a protected zone that the exporting Party has established; and
(b) if the Parties decide on principles and guidelines to recognise regional conditions, they shall include them in Annex 5-C.
Article 5.6. Equivalence
1. The importing Party shall accept the SPS measure of the exporting Party as equivalent to its own if the exporting Party objectively demonstrates to the importing Party that its measure achieves the importing Party's appropriate level of SPS protection.
2. Annex 5-D sets out principles and guidelines to determine, recognise, and maintain equivalence.
3. Annex 5-E sets out:
(a) the area for which the importing Party recognises that an SPS measure of the exporting Party is equivalent to its own; and
(b) the area for which the importing Party recognises that the fulfilment of the specified special condition, combined with the exporting Party's SPS measure, achieves the importing Party's appropriate level of SPS protection.
4. For the purposes of this Chapter, Article 1.7 (Reference to laws) applies subject to this Article, Annex 5-D and the General Notes under Annex 5-E.
Article 5.7. Trade Conditions
1. The importing Party shall make available its general SPS import requirements for all commodities. If the Parties jointly identify a commodity as a priority, the importing Party shall establish specific SPS import requirements for that commodity, unless the Parties decide otherwise. In identifying which commodities are priorities, the Parties shall cooperate to ensure the efficient management of their available resources. The specific import requirements should be applicable to the total territory of the exporting Party.
2. Pursuant to paragraph 1, the importing Party shall undertake, without undue delay, the necessary process to establish specific SPS import requirements for the commodity that is identified as a priority. Once these specific import requirements are established, the importing Party shall take the necessary steps, without undue delay, to allow trade on the basis of these import requirements.
3. For the purpose of establishing the specific SPS import requirements, the exporting Party shall, at the request of the importing Party:
(a) provide all relevant information required by the importing Party; and
(b) give reasonable access to the importing Party to inspect, test, audit and perform other relevant procedures.
4. If the importing Party maintains a list of authorised establishments or facilities for the import of a commodity, it shall approve an establishment or facility situated in the territory of the exporting Party without prior inspection of that establishment or facility if:
(a) the exporting Party has requested such an approval for the establishment or facility, accompanied by the appropriate guarantees; and
(b) the conditions and procedures set out in Annex 5-F are fulfilled.
5. Further to paragraph 4, the importing Party shall make its lists of authorised establishments or facilities publicly available.
6. A Party shall normally accept a consignment of a regulated commodity without pre-clearance of the commodity on a consignment basis, unless the Parties decide otherwise.
7. The importing Party may require that the relevant competent authority of the exporting Party objectively demonstrate, to the satisfaction of the importing Party, that the import requirements may be fulfilled or are fulfilled.
8. The Parties should follow the procedure set out in Annex 5-G on the specific import requirements for plant health.
Article 5.8. Audit and Verification
1. For the purpose of maintaining confidence in the implementation of this Chapter, a Party may carry out an audit or verification, or both, of all or part of the control programme of the competent authority of the other Party. The Party shall bear its own costs associated with the audit or verification.
2. If the Parties decide on principles and guidelines to conduct an audit or verification, they shall include them in Annex 5-H. If a Party conducts an audit or verification, it shall do so in accordance with any principles and guidelines in Annex 5-H.
Article 5.9. Export Certification
1. When an official health certificate is required to import a consignment of live animals or animal products, and if the importing Party has accepted the SPS measure of the exporting Party as equivalent to its own with respect to such animals or animal products, the Parties shall use the model health attestation prescribed in Annex 5-I for such certificate, unless the Parties decide otherwise. The Parties may also use a model attestation for other products if they so decide.
2. Annex 5-I sets out principles and guidelines for export certification, including electronic certification, withdrawal or replacement of certificates, language regimes and model attestations.
Article 5.10. Import Checks and Fees
1. Annex 5-J sets out principles and guidelines for import checks and fees, including the frequency rate for import checks.
2. If import checks reveal non-compliance with the relevant import requirements, the action taken by the importing Party must be based on an assessment of the risk involved and not be more trade-restrictive than required to achieve the Party's appropriate level of sanitary or phytosanitary protection.
3. Whenever possible, the importing Party shall notify the importer of a non-compliant consignment, or its representative, of the reason for non-compliance, and provide them with an opportunity for a review of the decision. The importing Party shall consider any relevant information submitted to assist in the review.
4. A Party may collect fees for the costs incurred to conduct frontier checks, which should not exceed the recovery of the costs.
Article 5.11. Notification and Information Exchange
1. A Party shall notify the other Party without undue delay of a:
(a) significant change to pest or disease status, such as the presence and evolution of a disease listed in Annex 5-B;
(b) finding of epidemiological importance with respect to an animal disease, which is not listed in Annex 5-B, or which is a new disease; and
(c) significant food safety issue related to a product traded between the Parties.
2. The Parties endeavour to exchange information on other relevant issues including:
(a) a change to a Party's SPS measure;
(b) any significant change to the structure or organisation of a Party's competent authority;
(c) on request, the results of a Party's official control and a report that concerns the results of the control carried out;
(d) the results of an import check provided for in Article 5.10 in case of a rejected or a non-compliant consignment; and
(e) on request, a risk analysis or scientific opinion that a Party has produced and that is relevant to this Chapter.
3. Unless the Joint Management Committee decides otherwise, when the information referred to in paragraph 1 or 2 has been made available via notification to the WTO's Central Registry of Notifications or to the relevant international standard-setting body, in accordance with its relevant rules, the requirements in paragraphs 1 and 2, as they apply to that information, are fulfilled.
Article 5.12. Technical Consultations
If a Party has a significant concern with respect to food safety, plant health, or animal health, or an SPS measure that the other Party has proposed or implemented, that Party may request technical consultations with the other Party. The Party that is the subject of the request should respond to the request without undue delay. Each Party shall endeavour to provide the information necessary to avoid a disruption to trade and, as the case may be, to reach a mutually acceptable solution.
Article 5.13. Emergency SPS Measures
1. A Party shall notify the other Party of an emergency SPS measure within 24 hours of its decision to implement the measure. If a Party requests technical consultations to address the emergency SPS measure, the technical consultations must be held within 10 days of the notification of the emergency SPS measure. The Parties shall consider any information provided through the technical consultations.
2. The importing Party shall consider the information that was provided in a timely manner by the exporting Party when it makes its decision with respect to a consignment that, at the time of adoption of the emergency SPS measure, is being transported between the Parties.
Article 5.14. Joint Management Committee for Sanitary and Phytosanitary Measures
1. The Joint Management Committee for Sanitary and Phytosanitary Measures (the Joint Management Committee), established under Article 26.2.1(d), comprises regulatory and trade representatives of each Party responsible for SPS measures.
2. The functions of the Joint Management Committee include:
(a) to monitor the implementation of this Chapter, to consider any matter related to this Chapter and to examine all matters which may arise in relation to its implementation;
(b) to provide direction for the identification, prioritisation, management and resolution of issues;
(c) to address any request by a Party to modify an import check;
(d) at least once a year, to review the annexes to this Chapter, notably in the light of progress made under the consulta- tions provided for under this Agreement. Following its review, the Joint Management Committee may decide to amend the annexes to this Chapter. The Parties may approve the Joint Management Committee's decision, in accordance with their respective procedures necessary for the entry into force of the amendment. The decision enters into force on a date agreed by the Parties;
(e) to monitor the implementation of a decision referred to in subparagraph (d), above, as well as the operation of measures referred to under subparagraph (d) above;
(f) to provide a regular forum to exchange information that relates to each Party's regulatory system, including the scientific and risk assessment basis for an SPS measure; and
(g) to prepare and maintain a document that details the state of discussions between the Parties on their work on recognition of the equivalence of specific SPS measures.
3. The Joint Management Committee may, among other things:
(a) identify opportunities for greater bilateral engagement, including enhanced relationships, which may include an exchange of officials;
(b) discuss at an early stage, a change to, or a proposed change to, an SPS measure being considered;
(c) facilitate improved understanding between the Parties on the implementation of the SPS Agreement, and promote cooperation between the Parties on SPS issues under discussion in multilateral fora, including the WTO Committee on Sanitary and Phytosanitary Measures and international standard-setting bodies, as appropriate; or
(d) identify and discuss, at an early stage, initiatives that have an SPS component, and that would benefit from cooperation.
4. The Joint Management Committee may establish working groups comprising expert-level representatives of the Parties, to address specific SPS issues.
5. A Party may refer any SPS issue to the Joint Management Committee. The Joint Management Committee should consider the issue as expeditiously as possible.
6. If the Joint Management Committee is unable to resolve an issue expeditiously, it shall, at the request of a Party, report promptly to the CETA Joint Committee.
7. Unless the Parties decide otherwise, the Joint Management Committee shall meet and establish its work programme no later than 180 days following the entry into force of this Agreement, and its rules of procedure no later than one year after the entry into force of this Agreement.
8. Following its initial meeting, the Joint Management Committee shall meet as required, normally on an annual basis. The Joint Management Committee may decide to meet by videoconference or teleconference, and it may also address issues out of session by correspondence.
9. The Joint Management Committee shall report annually on its activities and work programme to the CETA Joint Committee.
10. Upon entry into force of this Agreement, each Party shall designate and inform the other Party, in writing, of a contact point to coordinate the Joint Management Committee's agenda and to facilitate communication on SPS matters.
Chapter SIX. Customs and Trade Facilitation
Article 6.1. Objectives and Principles
1. The Parties acknowledge the importance of customs and trade facilitation matters in the evolving global trading environment.
2. The Parties shall, to the extent possible, cooperate and exchange information, including information on best practices, to promote the application of and compliance with the trade facilitation measures in this Agreement.
3. Measures to facilitate trade shall not hinder mechanisms to protect a person through effective enforcement of and compliance with a Party's law.
4. Import, export and transit requirements and procedures shall be no more administratively burdensome or trade restrictive than necessary to achieve a legitimate objective.
5. Existing international trade and customs instruments and standards shall be the basis for import, export and transit requirements and procedures, except if these instruments and standards would be an inappropriate or ineffective means for the fulfilment of the legitimate objective pursued.
Article 6.2. Transparency
1. Each Party shall publish or otherwise make available, including through electronic means, its legislation, regulations, judicial decisions and administrative policies relating to requirements for the import or export of goods.
2. Each Party shall endeavour to make public, including on the internet, proposed regulations and administrative policies relating to customs matters and to provide interested persons an opportunity to comment prior to their adoption.
3. Each Party shall designate or maintain one or more contact points to address inquiries by interested persons concerning customs matters and make available on the internet information concerning the procedures for making such inquiries.
Article 6.3. Release of Goods
1. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties and reduce costs for importers and exporters.
2. Each Party shall ensure that these simplified procedures:
(a) allow for the release of goods within a period of time no longer than that required to ensure compliance with its law;
(b) allow goods, and to the extent possible controlled or regulated goods, to be released at the first point of arrival;
(c) endeavour to allow for the expeditious release of goods in need of emergency clearance;
(d) allow an importer or its agent to remove goods from customs' control prior to the final determination and payment of customs duties, taxes, and fees. Before releasing the goods, a Party may require that an importer provide sufficient guarantee in the form of a surety, a deposit, or some other appropriate instrument; and
(e) provide for, in accordance with its law, simplified documentation requirements for the entry of low-value goods as determined by each Party.
3. Each Party, in its simplified procedures, may require the submission of more extensive information through post- entry accounting and verifications, as appropriate.
4. Each Party shall allow for the expedited release of goods and, to the extent possible and if applicable, shall:
(a) provide for advance electronic submission and processing of information before physical arrival of goods to enable their release upon arrival, if no risk has been identified or if no random checks are to be performed; and
(b) provide for clearance of certain goods with a minimum of documentation.
5. Each Party shall, to the extent possible, ensure that its authorities and agencies involved in border and other import and export controls cooperate and coordinate to facilitate trade by, among other things, converging import and export data and documentation requirements and establishing a single location for one-time documentary and physical verification of consignments.
6. Each Party shall ensure, to the extent possible, that its import and export requirements for goods are coordinated to facilitate trade, regardless of whether these requirements are administered by an agency or on behalf of that agency by the customs administration.
Article 6.4. Customs Valuation
1. The Customs Valuation Agreement governs customs valuation applied to reciprocal trade between the Parties.
2. The Parties shall cooperate with a view to reaching a common approach to issues relating to customs valuation.
Article 6.5. Classification of Goods
The classification of goods in trade between the Parties under this Agreement is set out in each Party's respective tariff nomenclature in conformity with the Harmonized System.
Article 6.6. Fees and Charges
Each Party shall publish or otherwise make available information on fees and charges imposed by a customs adminis- tration of that Party, including through electronic means. This information includes the applicable fees and charges, the specific reason for the fee or charge, the responsible authority, and when and how payment is to be made. A Party shall not impose new or amended fees and charges until it publishes or otherwise makes available this information.
Article 6.7. Risk Management
1. Each Party shall base its examination, release and post-entry verification procedures on risk assessment principles, rather than requiring each shipment offered for entry to be examined in a comprehensive manner for compliance with import requirements.
2. Each Party shall adopt and apply its import, export and transit requirements and procedures for goods on the basis of risk management principles and focus compliance measures on transactions that merit attention.
3. Paragraphs 1 and 2 do not preclude a Party from conducting quality control and compliance reviews that can require more extensive examinations.
Article 6.8. Automation
1. Each Party shall use information technologies that expedite its procedures for the release of goods in order to facilitate trade, including trade between the Parties.
2. Each Party shall:
(a) endeavour to make available by electronic means customs forms that are required for the import or export of goods;
(b) allow, subject to its law, those customs forms to be submitted in electronic format; and
(c) if possible, through its customs administration, provide for the electronic exchange of information with its trading community.
3. Each Party shall endeavour to:
(a) develop or maintain fully interconnected single window systems to facilitate a single, electronic submission of the information required by customs and non-customs legislation for cross-border movements of goods; and
(b) develop a set of data elements and processes in accordance with the World Customs Organization ("WCO") Data Model and related WCO recommendations and guidelines.
4. The Parties shall endeavour to cooperate on the development of interoperable electronic systems, including taking account of the work at the WCO, in order to facilitate trade between the Parties.
Article 6.9. Advance Rulings
1. Each Party shall issue, upon written request, advance rulings on tariff classification in accordance with its law.
2. Subject to confidentiality requirements, each Party shall publish, for example on the internet, information on advance rulings on tariff classification that is relevant to understand and apply tariff classification rules.
3. To facilitate trade, the Parties shall include in their bilateral dialogue regular updates on changes in their respective laws and implementation measures regarding matters referred to in paragraphs 1 and 2.
Article 6.10. Review and Appeal
1. Each Party shall ensure that an administrative action or official decision taken in respect of the import of goods is reviewable promptly by judicial, arbitral, or administrative tribunals or through administrative procedures.
2. The tribunal or official acting pursuant to those administrative procedures shall be independent of the official or office issuing the decision and shall have the competence to maintain, modify or reverse the determination in accordance with the Party's law.
3. Before requiring a person to seek redress at a more formal or judicial level, each Party shall provide for an adminis- trative level of appeal or review that is independent of the official or the office responsible for the original action or decision.
4. Each Party shall grant substantially the same right of review and appeal of determinations of advance rulings by its customs administration that it provides to importers in its territory to a person that has received an advance ruling pursuant to Article 6.9.
Article 6.11. Penalties
Each Party shall ensure that its customs law provides that penalties imposed for breaches to it be proportionate and non-discriminatory and that the application of these penalties does not result in unwarranted delays.
Article 6.12. Confidentiality
1. Each Party shall, in accordance with its law, treat as strictly confidential all information obtained under this Chapter that is by its nature confidential or that is provided on a confidential basis, and shall protect that information from disclosure that could prejudice the competitive position of the person providing the information.
2. If the Party receiving or obtaining the information referred to in paragraph 1 is required by its law to disclose the information, that Party shall notify the Party or person who provided that information.
3. Each Party shall ensure that the confidential information collected under this Chapter shall not be used for purposes other than the administration and enforcement of customs matters, except with the permission of the Party or person that provided that confidential information.
4. A Party may allow information collected under this Chapter to be used in administrative, judicial or quasi-judicial proceedings instituted for failure to comply with customs-related laws implementing this Chapter. A Party shall notify the Party or person that provided the information in advance of such use.
Article 6.13. Cooperation
1. The Parties shall continue to cooperate in international fora, such as the WCO, to achieve mutually-recognised goals, including those set out in the WCO Framework of Standards to Secure and Facilitate Global Trade.