(iv) import data for each of the last three years that constitute the basis that such good is being imported in increasing quantities, either in absolute terms, or relative to domestic production;
(v) data on the total domestic production of the identical, similar or directly competitive good for the last three years; and
(vi) data showing injury or threat of injury caused by imports of the good in question in accordance with subparagraphs (b) and (c);
(i) the application of paragraphs 4 and 5 may only be adopted after the conclusion of the prior consultation period;
(j) during the consultation period the exporting Party shall make any comments it considers relevant;
(k) the exporting Party shall apply paragraphs 4 and 5 at the conclusion of the consultation period under subparagraph (f) if any of the circumstances set out in paragraph 7 are found to exist; and
(I) in the event that the exporting Party does not apply paragraphs 4 and 5 under subparagraph (j), the importing Party shall have the right to withdraw the preferential tariff treatment provided for in this Agreement for that good.
13. The Parties shall consult annually on the implementation of this Article.
Article 3-05. Customs Valuation.
1. The customs value of an imported good shall be determined in accordance with the principles of the Customs Valuation Code.
2. The dutiable base on which customs duties shall be applied to goods imported from the other Party shall not be the value of a good produced in the territory of the importing Party, nor an arbitrary or fictitious value.
Article 3-06. Temporary Importation of Goods.
1. For purposes of this Article, the following definitions shall apply:
goods imported for sporting purposes: sporting equipment for use in competitions, sporting events or training in the territory of the Party into which it is imported;
goods for exhibition or demonstration purposes: goods for exhibition or demonstration purposes, including components, auxiliary apparatus and accessories;
advertising films: recorded visual media, with or without sound, consisting essentially of images showing the nature or functioning of goods or services offered for sale or rental by a person established or resident in the territory of a Party, provided that the films are suitable for exhibition to potential customers, but not for dissemination to the general public; and are imported in packages each containing not more than one copy of each film, and are not part of a larger consignment.
2. Each Party shall authorize the temporary importation without payment of customs duty of at least the following goods that are imported from the territory of the other Party, regardless of their origin and regardless of whether similar goods, direct competitors or substitutes are available in the territory of the Party:
(a) professional equipment necessary for the exercise of the activity, trade or profession of a business person;
(b) press equipment or equipment for the broadcasting of radio or television signals and cinematographic equipment;
(c) goods imported for sporting purposes, or for exhibition or demonstration; and d) commercial samples and advertising films.
3. Except as otherwise provided in this Agreement, the Parties may subject the temporary importation without payment of customs duty of a good of the type referred to in subparagraphs (a), (b) or (c) of paragraph 2 to any of the following conditions, provided that no additional conditions may be adopted:
(a) the good is imported by a person of the other Party or its representative;
(b) the good is used exclusively by the person or by his representative, or under his personal supervision, in the course of his trade, craft or profession;
(c) that the good is not sold, leased or otherwise disposed of while it remains in its territory;
(d) that the good is accompanied by a bond not exceeding 110% of the charges that would be due, if any, for entry or final importation, or the other form of security, refundable at the time of exportation of the good, except that no bond may be required for customs duties on an originating good;
(e) that the good is capable of identification when exported;
(f) that the good is exported upon departure of the person or his representative, or within a period of time reasonably corresponding to the purpose of the temporary importation;
(g) that the good is imported in quantities not greater than is reasonable in accordance with its intended use; and
(h) that the good is re-exported in the same condition in which it was imported.
4. Except as otherwise provided in this Agreement, the Parties may make the temporary importation without payment of customs duty of a good of the type referred to in paragraph 2(d) subject to any of the following conditions, provided that no additional conditions may be adopted:
(a) the good is imported only for the purpose of lifting orders for goods or services to be supplied from the territory of the other Party or from another non-Party;
(b) the good is not for sale or lease and is used only for demonstration or exhibition while remaining in its territory;
(c) the good is capable of identification when exported;
(d) the good is exported within a period of time reasonably corresponding to the purpose of the temporary importation;
(e) that the good is imported in quantities not greater than is reasonable in accordance with its intended use; and
(f) the good is accompanied by a bond not exceeding 110% of the charges, if any, that would be due on entry or final importation, or such other form of security, refundable upon exportation of the good, except that no bond may be required for customs duties on an originating good.
5. Where a good that is temporarily imported fails to meet any of the conditions that a Party imposes under paragraphs 3 and 4, that Party may apply the customs duties and any other charges that would be due on the entry or final importation of the good.
Article 3-07. Duty-Free Importation for Samples of No Commercial Value.
For the purposes of this article, samples of no commercial value shall be understood to mean goods representative of a class of goods already produced or a model the production of which is planned. It does not include identical goods imported by the same person or sent to a single consignee, in such quantity that, taken as a whole, they constitute an ordinary import subject to the payment of customs duties.
2. Each Party shall authorize the importation free of customs duty of samples of no commercial value from the territory of the other Party.
Section C. Non-Tariff Measures
Article 3-08. Import and Export Restrictions.
1. Except as otherwise provided in this Agreement, no Party may adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except as provided in Article XI of the GATT, including its interpretative notes. For this purpose, Article XI of the GATT and its interpretative notes are incorporated into and made an integral part of this Agreement.
2. The Parties understand that the GATT rights and obligations embodied in paragraph 1 prohibit, in all circumstances in which any other type of restriction is prohibited, the establishment of minimum export and import prices, except as permitted for the application of sanctions and countervailing duty commitments.
3. Where a Party adopts or maintains a prohibition or restriction on the importation of goods from a non- Party or the exportation of goods to a non-Party, nothing in this Agreement shall be construed to prevent it from:
(a) limiting or prohibiting the importation of the goods of the non-Party from the territory of the other Party; or
(b) requiring as a condition for the exportation of such goods from the Party to the territory of the other Party that the goods not be re-exported to the non-Party, directly or indirectly, without being processed or manufactured in the territory of the other Party in a manner that results in a substantial change in the value, form or use of the goods, or in the production of another good.
4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, at the request of either Party, the Parties shall consult with a view to preventing the measure from interfering with or causing undue distortions in the pricing, marketing and distribution mechanisms in the other Party.
5. Paragraphs 1 through 4 do not apply to the measures set out in the Annex to Articles 3-02 and 3-08.
Article 3-09. Customs Duties.
1. No Party shall levy customs duties on originating goods for the service provided by customs.
2. The Parties shall be subject to the provisions of the Annex to this Article.
Article 3-10. Export Taxes.
1. Except as provided in this Article, no Party shall adopt or maintain any tax, levy or charge on the exportation of a good to the territory of the other Party, unless such taxes, levies or charges are also adopted or maintained on that good when it is destined for domestic consumption.
2. Each Party may maintain or adopt a tax, levy or other charge on the export of the basic foodstuffs listed in paragraph 3, on their ingredients, or on the goods from which those foodstuffs are derived, if that tax, levy or charge is used:
(a) to ensure that the benefits of a domestic food assistance program involving such foodstuffs are received only by consumers in the Party applying that program; or
(b) to ensure the availability of sufficient quantities of the foodstuffs intended for domestic consumers, or sufficient quantities of their ingredients or of the goods from which such foodstuffs are derived, to a domestic processing industry when the domestic price of such foodstuffs is held below the world price as part of a government stabilization program, provided that such taxes, levies or charges do not have the effect of increasing the protection afforded to the domestic industry and are maintained only for the period necessary to preserve the integrity of such program.
3. For purposes of paragraph 2, "basic foodstuffs" means:
Vegetable oil
Rice
Canned tuna White sugar Brown sugar
Beef steak or pulp Soluble coffee Roasted coffee Ground beef
Beer
Packaged chili Chocolate powder Chicken concentrate Beans
Popular sweet cookies Crackers
Jellies
Corn flour
Wheat flour
Beef liver
Oat flakes
Egg
Cooked ham
Condensed milk Powdered milk Powdered milk for children Evaporated milk Pasteurized milk Vegetable shortening Margarine
Corn dough
White bread
Boxed bread
Soup pasta
Tomato puree Bottled soft drinks Bone-in slices
Salt
Canned sardines Corn tortilla
4. Notwithstanding paragraph 1, each Party may adopt or maintain a tax, levy or charge on the export of any foodstuff to the territory of the other Party if that tax, levy or charge is applied temporarily to alleviate a critical shortage of that foodstuff. For purposes of this paragraph, "temporarily" means up to one year, or such longer period as the Parties may agree.
5. Paragraph 1 does not apply to the measures set out in the Annex to this Article.
Article 3-11. Country of Origin Marking.
The Annex to this Article applies to measures related to country of origin marking.
Article 3-12. Distinctive Products.
The annex to this article applies to the products indicated therein.
Section D. Publication and Notification
Article 3-13. Publication and Notification.
1. Each Party shall promptly publish and notify the laws, regulations, procedures and administrative provisions of general application that it has brought into force and that relate to the classification, valuation or customs valuation of goods, to rates of customs duties, taxes or other charges or to import or export measures, restrictions or prohibitions, or the transfer of payments relating thereto, or to the sale, distribution, transportation, insurance, storage, inspection, exhibition, processing, mixing or other use of such goods, so that governments and interested traders or persons of the other Party may be aware of them. Each Party shall also publish agreements relating to international trade policy and in force between the government or a government agency of that Party and the government or a government agency of the other Party.
2. No Party shall apply prior to their official publication any measure of a general nature adopted by that Party that has the effect of increasing a customs duty or other charge on the importation of goods of the other Party under established and uniform usage, or that imposes a new or more burdensome measure, restriction or prohibition on imports of goods of the other Party or on transfers of funds relating thereto.
3. Each Party shall identify in terms of the tariff items and nomenclature corresponding to them according to their respective tariffs, the measures, restrictions or prohibitions on the importation or exportation of goods for reasons of national security, public health, preservation of flora or fauna, preservation of the environment, plant and animal health, standards, labels, international commitments, public order requirements or any other regulations.
Section E. Provisions on Textile Goods.
Article 3-14. Temporary Flexibility Levels for Certain Goods Classified In Chapters 51 Through 63 of the Harmonized System.
1. Each Party shall accord to certain goods classified in Chapters 51 through 63 of the Harmonized System, produced in the territory of the other Party in accordance with the provisions of paragraph 2 and imported into its territory, the preferential tariff treatment provided for in the Tariff Discharge Schedule for originating goods, in accordance with the amounts and dates set out in the Annex to this Article.
2. For purposes of this Article:
(a) yarns and threads classified in headings 51.06 through 51.10, 52.04 through 52.07, 53.07 through 53.08, and 55.08 through 55.11 of the Harmonized System shall be wholly produced in the territory of the exporting Party from non-originating fiber;
b) goods classified in headings 54.01 through 54.06 of the Harmonized System shall be wholly produced in the territory of the exporting Party from non-originating materials;
c) fabrics classified in headings 51.11 through 51.13, 52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08, 55.12 through 55.16 and 60.01 through 60.02 of the Harmonized System must be wholly knitted or woven in the territory of the exporting Party from non-originating yarn or thread;
d) textile goods classified in Chapters 56 through 59 of the Harmonized System must be wholly produced in the territory of the exporting Party from non-originating fabric, yarn or thread; and
e) apparel and other manufactured goods classified in Chapters 61 through 63 of the Harmonized System shall be wholly cut or knit to shape, and sewn or otherwise assembled in the territory of the exporting Party from non-originating fabric, yarn or thread.
3. The total annual amounts set out in the Annex to this Article may not be allocated to goods classified in a given heading in an amount exceeding 20% of the total annual amount.
4. Beginning January 15, 1999, each Party shall grant preferential tariff treatment only to originating goods classified in Chapters 50 through 63 of the Harmonized System.
5. With respect to the importation of goods in excess of the amounts set out in the Annex to this Article, each Party shall grant preferential tariff treatment under the Tariff Discharge Program only if they comply with the corresponding rule of origin set out in the Annex to Article 5-03 (Specific Rules of Origin).
Chapter IV. Agricultural Sector and Animal and Plant Health Measures
Section A. Agricultural Sector
Article 4-01. Definitions.
For the purposes of this section, the following definitions shall apply:
agricultural good: a good classified in any of the following chapters, headings or subheadings of the Harmonized System:
(Descriptions are provided for reference purposes).
Chapter 01 to 24 (except fish and fish products)
subheading 2905.43 mannitol
subheading 2905.44 sorbitol
subheading 2918.14 citric acid
subheading 2918.15 citric acid salts and esters
subheading 2936.27 vitamin C and its derivatives
heading 33.01 essential oils
headings 35.01 to 35.05 |albuminoid materials, modified starch products, modified starch-based products subheading 3809.10 finishing and finishing products
subheading 3823.60 sorbitol n.o.s.
headings 41.01 to 41.03 hides and skins
heading 43.01 raw furskin
headings 50.01 to 50.03 raw silk and silk waste
headings 51.01 to 51.03 |wool and hair
headings 52.01 to 52.03 |seed cotton, cotton waste and carded or combed cotton heading 53.01 raw linen
item 53.02 raw hemp
fish and fish products: fish, crustaceans, mollusks or any other aquatic invertebrates, marine mammals and their derivatives, classified in any of the following chapters, headings or subheadings of the Harmonized System:
(Descriptions are provided for reference purposes).
Chapter 03 Fish and Crustaceans, Mollusks and other Aquatic Invertebrates
item 05.07 ivory, tortoise shell, marine mammals, horns, antlers, hooves, hoofs, claws, claws and beaks, and their products
item 05.08 coral and similar products
item 05.09 natural sponges of animal origin
item 05.11 products of fish or crustaceans, molluscs or any other marine invertebrate; dead animals of Chapter 03
item 15.04 fats or oils and their fractions, from fish or marine mammals
item 16.03 non-meat extracts and juices
item 16.04 fish preparations or canned fish
item 16.05 prepared or preserved crustaceans or mollusks and other marine invertebrates
subheading 2301.20 meal, feed, fish pellets
Export subsidies:
(a) the granting of direct export subsidies, including payments in kind, by governments or public agencies, to an enterprise, an industry, producers of an agricultural good, a cooperative or other association of such producers, or a marketing board;
(b) the sale or placement for export of non-commercial stocks of agricultural goods by governments or public bodies at a price lower than the comparable price charged to purchasers in the domestic market for a similar agricultural good;
(c) payments for the export of agricultural goods financed by virtue of governmental action, whether or not involving a charge on government accounts, including payments financed out of the proceeds of a levy imposed on the agricultural good in question or on an agricultural good from which the exported agricultural good is derived;
(d) the provision of subsidies to reduce the costs of marketing exports of agricultural goods (other than readily available export promotion and advisory services), including handling, processing and other processing costs, and international transportation and freight costs;
(e) internal transportation and freight costs for export shipments established or imposed by governments on terms more favorable than for domestic shipments;
(f) subsidies on agricultural goods contingent upon their incorporation into exported goods.
Article 4-02. Scope of Application.
1. This Section applies to measures adopted or maintained by any Party relating to agricultural trade.
2. In the event of inconsistency between the provisions of this Section and any other provision of this Agreement, the provisions of this Section shall prevail to the extent of the inconsistency.
Article 4-03. International Obligations.
A Party, before adopting a measure under an intergovernmental agreement on goods under Article XX(h) of the GATT that may affect trade in an agricultural good between the Parties, shall consult with the other Party to avoid nullifying or impairing a concession granted by that Party in its Schedule to the Tariff Break Schedule.
Article 4-04. Market Access.
1. The Parties shall facilitate access to their respective markets by reducing or eliminating barriers to trade in agricultural goods and shall not establish new barriers to trade between them.