Article 5.9. Trade Facilitation
1. In cases where the importing Party requires an on-the-spot verification to authorise imports of a certain category or categories of products of animal origin from the exporting Party, the following shall apply:
(a) The verification shall evaluate the exporting Party's inspection and certification system in accordance with Article 5.8 (Verifications) and shall take into consideration, upon request, any relevant written information provided by the exporting Party.
(b) In case of a satisfactory outcome of the verification of the inspection and certification system, the importing Party shall inform the exporting Party in writing of the positive outcome of the verification. In such case, the information provided may include the fact that the importing Party has authorised, or will authorise, imports of specific cate- gory or categories of products.
(c) If the outcome of the verification of the inspection and certification systems is not satisfactory, the importing Party shall inform, in writing, the exporting Party of the result of the verification. In such case, the information shall include one of the following:
(i) a statement of the conditions, including those related to the inspection and certification system of the exporting Party, that still need to be put in place by the exporting Party to allow the importing Party to authorise imports of a specific category or categories of products of animal origin;
(ii) a reference to the fact that specific establishments of products of animal origin may be allowed to export to the importing Party upon compliance with the relevant import requirements of Article 5.7 (Import Requirements); or
(iii) a statement that the importing Party has not authorised the importation of the specific category or categories of products from the exporting Party.
2. In cases where the importing Party has authorised the importation of a specific category or categories of products of animal origin referred to in paragraph 1(b), the exporting Party shall inform the importing Party of the list of individual establishments that meet the importing Party's requirements in accordance with, in particular, Article 5.7 (Import Requirements) and Article 5.8 (Verifications). Furthermore the following applies:
(a) At the request of the exporting Party, the importing Party shall approve individual establishments as referred to in paragraph 3 of Annex 5-B which are situated in the territory of the exporting Party, without prior inspection of those individual establishments. When requesting the approval by the importing Party, the exporting Party shall provide any information required by the importing Party to guarantee the compliance with the relevant requirements, including those of Article 5.7 (Import Requirements). The approval by the importing Party shall be consistent with the conditions set out in Annex 5-B, and shall be limited to those categories of products for which imports are authorised.
(b) Upon the approval of the individual establishments referred to in subparagraph 2(a), the importing Party shall take the necessary legislative or administrative measures, in accordance with its applicable legal and administrative procedures, to allow imports within 40 calendar days of the receipt of the request of the exporting Party and, if applicable, the information required by the importing Party to guarantee the compliance with the relevant requirements, including those of Article 5.7 (Import Requirements).
(c) The importing Party shall notify the exporting Party of its acceptance or rejection of any individual establishments referred to in paragraph 2(a) and, if applicable, the reasons for any rejection.
Article 5.10. Measures Linked to Animal and Plant Health
1. The Parties recognise the concepts of pest- or disease-free areas and areas of low pest or disease prevalence, in accordance with the SPS Agreement, OIE and IPPC standards, guidelines and recommendations. The SPS Committee referred to in Article 5.15 (Committee on Sanitary and Phytosanitary Measures) may define further details for the procedure for the recognition of such areas, including procedures for the recognition of such areas in cases where there has been an outbreak, taking into account any relevant SPS Agreement, OJE and IPPC standards, guidelines or recommendations.
2. When determining pest- or disease-free areas and areas of low pest or disease prevalence, the Parties shall consider factors such as geographical location, ecosystems, epidemiological surveillance, and the effectiveness of sanitary or phytosanitary controls in such areas.
3. The Parties shall establish close cooperation on the determination of pest- or disease-free areas and areas of low pest and disease prevalence, with the objective of attaining confidence in the procedures followed by the other Party for the determination of such areas. When accepting the determination of such areas made by the exporting Party, the importing Party shall, in principle, base its determination of the animal or plant health status of the exporting Party or parts thereof on the information provided by the exporting Party in accordance with the SPS Agreement, OJE and IPPC standards, guidelines and recommendations.
4. If the importing Party does not accept the determination made by the exporting Party, it shall explain the reasons and shall be ready to enter into consultations.
5. Where the exporting Party claims that areas within its territory are pest- or disease-free areas or areas of low pest or disease prevalence, it shall provide relevant evidence in order to objectively demonstrate to the importing Party that such areas are, and are likely to remain, pest- or disease-free areas or areas of low pest or disease prevalence, as the case may be. For this purpose, reasonable access shall be given, upon request, to the importing Party for inspection, testing and other relevant procedures.
6. The Parties recognise the principle of compartmentalisation of the OIE and pest-free production sites of the IPPC. The SPS Committee referred to in Article 5.15 (Committee on Sanitary and Phytosanitary Measures) will assess any OIE and IPPC recommendations that may be issued on this matter in the future and may issue recommendations accordingly.
Article 5.11. Transparency and Exchange of Information
1. The Parties shall:
(a) pursue transparency as regards SPS measures applicable to trade and, in particular, to those of Article 5.7 (Import Requirements) applied to imports from the other Party;
(b) enhance mutual understanding of each Party's SPS measures and their application;
(c) exchange information on matters related to the development and application of SPS measures, including the progress on new available scientific evidence, that affect, or may affect, trade between the Parties with a view to minimising their negative trade effects;
(d) communicate, upon the request of a Party, the import requirements that apply to the importation of specific products within 15 calendar days; and
(e) communicate, upon the request of a Party, progress on the application for the authorisation of specific products within 15 calendar days.
2. The contact points responsible for the information pursuant to paragraph 1 are those that are designated by the Parties in accordance with paragraph 1 of Article 13.4 (Enquiries and Contact Points). Information shall be sent by post, fax or e-mail. Information by e-mail may be signed electronically and shall only be sent between the contact points.
3. Where the information pursuant to subparagraph 1(c) has been made available by notification to the WTO in accordance with its relevant rules and procedures, or where the above information has been made available on the official, publicly accessible and fee-free websites of the Parties, the information exchange referred to in that subpara- graph shall be deemed to have taken place.
4. All notifications under this Chapter shall be made to the contact points referred to under paragraph 2.
Article 5.12. Consultations
1. Each Party shall notify the other Party in writing, within two calendar days, of any serious or significant risk to human, animal or plant life or health, including any food emergencies.
2. Where a Party has serious concerns regarding a risk to human, animal or plant life or health, affecting commodities for which trade takes place, consultations regarding the situation shall, upon request, take place as soon as possible. In such case, each Party shall endeavour to provide all necessary information in due time to avoid disruption in trade.
3. Consultations referred to in paragraph 2 of this Article may be held by e-mail, video or telephone conference. The requesting Party shall ensure the preparation of the minutes of the consultation.
Article 5.13. Emergency Measures
1. In case of serious risk to human, animal or plant life or health, the importing Party may, without previous notification, take measures necessary to protect human, animal or plant life or health. For consignments in transport between the Parties, the importing Party shall consider the most suitable and proportionate solution in order to avoid unnecessary disruptions to trade.
2. The Party taking the measures shall inform the other Party as soon as possible, and in any case no later than 24 hours after the adoption of the measure. Either Party may request any information related to the sanitary and phytosanitary situation or to any such measures that have been adopted. The other Party shall reply as soon as the requested information is available.
3. Upon the request of either Party, and in accordance with the provisions of Article 5.12 (Consultations), the Parties shall hold consultations regarding the situation within 15 calendar days of the notification. These consultations shall be carried out in order to avoid unnecessary disruptions to trade. The Parties may consider options for the facilitation of the implementation or the replacement of the measures.
Article 5.14. Equivalence
1. The Parties may recognise the equivalence of an individual measure, groups of measures or systems applicable to a sector or to a part of a sector in accordance with paragraphs 4 to 7. The recognition of equivalence shall be applied to trade between the Parties in animals and animal products, plants and plant products, or, as appropriate, to related goods.
2. Where equivalence has not been recognised, trade shall take place under the conditions required by the importing Party to meet its appropriate level of protection.
3. The recognition of equivalence requires an assessment and acceptance of
(a) existing SPS measures in legislation, standards and procedures, including controls related to inspection and certification systems to ensure that the SPS measures of both the exporting Party and the importing Party are met;
(b) the documented structure of the competent authorities, their powers, their chain of command, their modus operandi and the resources available to them; and
(c) the performance of the competent authority in relation to the control programmes and assurances. 4. In their assessments, the Parties shall take account of experience already acquired.
5. The importing Party shall accept a sanitary or phytosanitary measure of the exporting Party as equivalent if the exporting Party objectively demonstrates that its measure achieves the importing Party's appropriate level of protection. For this purpose, reasonable access shall be given, upon request, to the importing Party for inspection, testing and other relevant procedures.
6. The Parties will take into account guidance of the Codex Alimentarius, OIE, IPPC and the WTO SPS Committee in recognising equivalence.
7. Furthermore, where equivalence has been recognised, the Parties may agree on a simplified model for the official sanitary or phytosanitary certificates that are necessary for each consignment of animals or animal products, plants or plant products, or other related goods intended. for importation.
Article 5.15. Committee on Sanitary and Phytosanitary Measures
1. The Committee on Sanitary and Phytosanitary Measures (hereinafter referred to as the "SPS Committee") established pursuant to Article 16.2 (Specialised Committees) shall include representatives of the competent authorities of the Parties.
2. The SPS Committee shall meet within one year of the entry into force of this Agreement. Thereafter it shall meet at least once a year or as agreed by the Parties. The SPS Committee shall establish its rules of procedure at its first meeting. It shall meet in person, by telephone conference, by video-conference, or through any other means, as agreed by the Parties.
3. The SPS Committee may agree to establish technical working groups consisting of experts of the Parties, which shall identify and address technical and scientific issues arising under this Chapter and shall explore opportunities for further collaboration on SPS matters of mutual interest. When additional expertise is needed, persons other than representatives of the Parties may participate in the work of a technical working group.
4. The SPS Committee may address any matter related to the effective functioning of this Chapter. In particular, it shall have the following responsibilities and functions:
(a) developing the necessary procedures or arrangements for the implementation of this Chapter, including Annexes 5-A and 5-B;
(b) monitoring the implementation of this Chapter; and
(c) providing a forum for discussion of problems arising from the application of certain SPS measures with a view to reaching mutually acceptable solutions. In this connection, the SPS Committee shall be convened as a matter of urgency, at the request of a Party, so as to carry out consultations. Such consultations are without prejudice to the rights and obligations of the Parties under Chapter Fourteen (Dispute Settlement) and Chapter Fifteen (Mediation Mechanism).
5. The SPS Committee shall exchange information, expertise and experiences in the field of animal welfare in order to promote the collaboration on animal welfare between the Parties.
6. The Parties may, by decision in the SPS Committee, adopt recommendations and decisions related to the authori- sation of imports, exchange of information, transparency, recognition of regionalisation, equivalency and alternative measures, and any other matter referred to under paragraphs 4 and 5.
Article 5.16. Technical Consultations
1. Where a Party considers that a measure of the other Party is or might be contrary to the obligations under this Chapter, and considers that the measure causes or may cause an unjustified disruption to trade, it may request technical consultations in the SPS Committee with a view to reaching mutually acceptable solutions. The competent authorities set out in Annex 5-A shall facilitate these consultations.
2. Technical consultations in the SPS Committee shall be deemed concluded within 30 days following the date of submission of the request for technical consultations, unless the consulting Parties agree to continue with the consulta- tions. The technical consultations may be made via telephone conference, video-conference, or any other mechanism agreed by the Parties.
Chapter SIX. CUSTOMS AND TRADE FACILITATION
Article 6.1. Objectives
1. The Parties recognise the importance of customs and trade facilitation matters in the evolving global trading environment. The Parties agree to reinforce cooperation in this area, with a view to ensuring that the relevant legislation and procedures, as well as the administrative capacity of the relevant administrations, fulfil the objectives of promoting trade facilitation while ensuring effective customs control.
2. To that end, the Parties agree that legislation shall be non-discriminatory, and that customs procedures shall be based upon the use of modern methods and effective controls to combat fraud and to protect legitimate trade.
3. The Parties recognise that legitimate public policy objectives, including in relation to security, safety and combating fraud, shall not be compromised in any way.
Article 6.2. Principles
1. The Parties agree that their respective customs provisions and procedures shall be based upon:
(a) international instruments and standards applicable in the area of customs and trade which the respective Parties have accepted, including the substantive elements of the Revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures, the International Convention on the Harmonized Commodity Description and Coding System, and the Framework of Standards to Secure and Facilitate Global Trade (hereinafter referred to as "SAFE Framework") of the World Customs Organization (hereinafter referred to as "WCO");
(b) the protection of legitimate trade through the effective enforcement and compliance of legislative requirements;
(c) legislation that avoids unnecessary or discriminatory burdens on economic operators, that provides for further trade facilitation for economic operators with high levels of compliance, and that ensures safeguards against fraud and illicit or damageable activities; and
(d) rules that ensure that any penalty imposed for breaches of customs regulations or procedural requirements is proportionate and non-discriminatory, and that their application shall not unduly delay the release of goods.
2. In order to improve working methods, as well as to ensure non-discrimination, transparency, efficiency, integrity and accountability of operations, the Parties shall:
(a) simplify requirements and formalities wherever possible with respect to the rapid release and clearance of goods; and
(b) work towards the further simplification and standardisation of the data and documentation required by customs and other agencies.
Article 6.3. Customs Cooperation
1. The Parties shall cooperate on customs matters between their respective authorities in order to ensure that the objectives set out in Article 6.1 (Objectives) are attained.
2. In order to enhance cooperation on customs matters, the Parties shall, inter alia:
(a) exchange information concerning their respective customs legislation, the implementation thereof, and their customs procedures, particularly in relation to the following areas:
(i) simplification and modernisation of customs procedures;
(ii) border enforcement of intellectual property rights by the customs authorities;
(iii) transit movements and transhipment; and (iv) relations with the business community;
(b) consider developing joint initiatives relating to import, export and other customs procedures, as well as towards ensuring an effective service to the business community;
(c) work together on customs-related aspects of securing and facilitating the international trade supply chain in accor- dance with the SAFE Framework;
(d) establish, where appropriate, mutual recognition of their respective risk management techniques, risk standards, security controls and trade partnership programmes, including aspects such as data transmission and mutually agreed benefits; and
(e) strengthen coordination in international organisations such as the WTO and the WCO.
Article 6.4. Transit and Transhipment
1. Each Party shall ensure the facilitation and effective control of transhipment operations and transit movements through its territory.
2. The Parties shall promote and implement regional transit arrangements with a view to facilitating trade.
3. The Parties shall ensure cooperation and coordination between all concerned authorities and agencies in their respective territories to facilitate traffic in transit.
Article 6.5. Advance Rulings
Prior to the importation of goods into its territory, and in accordance with its legislation and procedures, each Party shall issue to traders established in its territory, through its customs authorities or other competent authorities, written advance rulings concerning tariff classification, origin, and any other matters as the Party may decide.
Article 6.6. Simplified Customs Procedure
1. Each Party shall provide simplified import and export procedures that are transparent and efficient, in order to reduce costs and increase predictability for economic operators, including small and medium sized enterprises. Easier access to customs simplifications shall also be provided for authorised traders, according to objective and non-discriminatory criteria.
2. A single customs declaration document or its electronic equivalent shall be used for the purpose of completing the formalities required for placing the goods under a customs procedure.
3. The Parties shall apply modern customs techniques, including risk assessment and post-clearance audit methods, in order to simplify and facilitate the entry and the release of goods.
4. The Parties shall promote the progressive development and use of systems, including those based upon information technology, to facilitate the electronic exchange of data among their respective traders, customs authorities and other related agencies.
Article 6.7. Release of Goods
Each Party shall ensure that its customs authorities, border agencies or other competent authorities shall apply requirements and procedures that:
(a) provide for the prompt release of goods within a period no greater than that required to ensure compliance with its customs and other trade-related laws and formalities;
(b) provide for pre-arrival processing (ie. advance electronic submission and eventual processing of information before physical arrival of goods) to enable the release of goods on arrival; and
(c) provide for the release of goods without the payment of customs duties, subject to the provision of a guarantee, if required according to the legislation of the Party concerned, in order to secure the final payment of customs duties.
Article 6.8. Fees and Charges
1. Fees and charges shall only be imposed for services provided in connection with the importation or exportation in question and for any formality required for undertaking such importation or exportation. They shall not exceed the approximate cost of the service provided, and shall not be calculated on an ad valorem basis.
2. The information on fees and charges shall be published via an officially designated medium, which may include the internet. This information shall include the reason for the fee or charge for the service provided, the responsible authority, the fee or charge that will be applied, and when and how payment is to be made.
3. New or amended fees and charges shall not be imposed. until information in accordance with paragraph 2 is published and made readily available.
Article 6.9. Customs Brokers
The Parties agree that their respective customs provisions and procedures shall not require the mandatory use of customs brokers. The Parties shall apply transparent, non-discriminatory and proportionate rules when licensing customs brokers.
Article 6.10. Preshipment Inspections
The Parties agree that their respective customs provisions and procedures shall not require the mandatory use of pre-shipment inspections as defined in the Agreement on Preshipment Inspection, or any other inspection activity per-formed by private companies at the destination, before customs clearance.
Article 6.11. Customs Valuations
1. The Parties shall determine the customs value of goods in accordance with the Customs Valuation Agreement.
2. The Parties shall cooperate with a view to reaching a common approach to issues relating to customs valuation.
Article 6.12. Risk Management
1. Each Party shall base its examination and release procedures and its post-entry verification procedures on risk assessment principles and the use of audits, rather than examining each shipment in a comprehensive manner for compliance with all import requirements.
2. The Parties agree to adopt and apply their control requirements and procedures for the importation, exportation, transit and transhipment of goods on the basis of risk management principles which shall be applied to focus compliance measures on transactions that merit attention.
Article 6.13. Single Window
Each Party shall endeavour to develop or maintain single window systems to facilitate a single, electronic submission of all information required by customs and other legislation for the exportation, importation and transit of goods.
Article 6.14. Appeal Procedures
1. Each Party shall provide effective, prompt, non-discriminatory and easily accessible procedures to guarantee the right of appeal against the administrative actions, rulings and decisions by customs and other competent authorities that affect the importation or exportation of goods or that affect goods in transit.
2. Appeal procedures may include administrative review by the supervising authority and the judicial review of decisions taken at the administrative level in accordance with the legislation of the Parties.
Article 6.15. Transparency
1. Each Party shall publish or otherwise make available, including through electronic means, their legislation, regula- tions, and administrative procedures and other requirements relating to customs and trade facilitation.
2. Each Party shall designate or maintain one or more inquiry or information points to address inquiries by inter- ested persons concerning customs and trade facilitation matters.
Article 6.16. Relations with the Business Community
The Parties agree:
(a) on the importance of timely consultations with trade representatives when formulating legislative proposals and general procedures related to customs and trade facilitation issues; to that end, consultations shall be held between customs authorities and the business community, as appropriate;
(b) to publish or otherwise make available, as far as possible through electronic means, new legislation and general procedures related to customs and trade facilitation issues prior to the application of any such legislation and procedures, as well as changes to and interpretations of such legislation and procedures; they shall also make publicly available relevant notices of an administrative nature, including agency requirements and entry procedures, hours of operation and operating procedures for customs offices at ports and border crossing points, and points of contact for information enquiries;
(c) on the need for a reasonable time period between the publication of new or amended legislation, procedures and fees or charges and their entry into force, without prejudice to legitimate public policy objectives (e.g. changes in duty rates); and
(d) to ensure that their respective customs and related requirements and procedures continue to meet the needs of the trading community, follow best practices, and that they remain the least trade-restrictive requirements and procedures possible.
Article 6.17. Committee on Customs
1. The Committee on Customs established by Article 16.2 (Specialised Committees) shall consist of representatives of the customs and other competent authorities of the Parties. The Committee on Customs shall ensure the proper functioning of this Chapter, Protocol 1 and any additional provisions relating to customs that the Parties may agree on. The Parties may examine and take decisions in the Committee on Customs on all issues arising thereunder.
2. The Parties may adopt recommendations and take decisions in the Committee on Customs on the mutual recognition of risk management techniques, risk standards, security controls and trade partnership programmes, including aspects such as data transmission and mutually agreed benefits, and any other issue covered by paragraph 1.
3. The Parties may agree to hold ad hoc meetings for any customs matter, including rules of origin, and any additional customs-related provisions as agreed between the Parties. They may also establish sub-groups for specific issues, where appropriate.
Chapter SEVEN. NON-TARIFF BARRIERS TO TRADE AND INVESTMENT IN RENEWABLE ENERGY GENERATION
Article 7.1. Objectives
In line with global efforts to reduce greenhouse gas emissions, the Parties share the objective of promoting, developing and increasing the generation of energy from renewable and sustainable non-fossil sources, particularly through facilitating trade and investment. To this effect, the Parties shall cooperate towards removing or reducing tariffs as well as non-tariff barriers, and shall cooperate on fostering regulatory convergence with or towards regional and international standards.
Article 7.2. Definitions
For the purposes of this Chapter:
(a) "local content requirement" means
(i) with respect to goods, a requirement for an enterprise to purchase or use goods of domestic origin or goods from a domestic source, whether that requirement is specified in terms of particular products, in terms of volume or value of products, or in terms of a proportion of volume or value of its local production;
(ii) with respect to services, a requirement which restricts the choice of the service supplier or the service supplied, to the detriment of services or service suppliers from the other Party;
(b) "measure" means any measure within the scope of this Chapter that is taken by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form;
(c) "measures requiring the formation of partnerships with local companies" means any requirements to jointly establish or operate with local companies or other businesses any legal entity such as a corporation, trust, partnership, joint venture or to enter into other contractual relations;
(d) "offset" means any condition that encourages local development, such as the unjustified licensing of technology, investment, obligation to contract with a particular financial institution, counter-trade, and similar requirements, and
(e) "service supplier" means as defined in paragraph ()) of Article 8.2 (Definitions).
Article 7.3. Scope
1. This Chapter applies to measures which may affect trade and investment between the Parties related to the generation of energy from renewable and sustainable non-fossil sources, namely wind, solar, aerothermal, geothermal, hydrothermal and ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases, but not to the products from which energy is generated.
2. This Chapter does not apply to research and development projects and to demonstration projects carried out on a non-commercial scale.
3. This Chapter is without prejudice to the application of any other relevant provisions of this Agreement, including any exceptions, reservations or restrictions to those provisions, to the measures mentioned in paragraph 1, mutatis mutandis. For greater certainty, in the event of any inconsistency between this Chapter and any other provisions of this Agreement, the other provisions of this Agreement shall prevail to the extent of the inconsistency.