Title
Chile - Uruguay Free Trade Agreement
Preamble
The Government of the Republic of Chile and the Oriental Republic of Uruguay, determined to
STRENGTHEN the special bonds of friendship and cooperation among its peoples;
CONTRIBUTE to harmonious development, expansion of world trade and promote greater international cooperation;
CREATE a wider and safer market for goods and services in their respective territories AVOID distortions in their reciprocal trade;
ESTABLISH clear and mutually beneficial rules in their commercial exchange; ASSURE a predictable business framework for planning business activities;
DEVELOP their respective rights and obligations under the Marrakech Agreement Establishing the World Trade Organization, as well as under other multilateral and bilateral cooperation instruments;
TO STRENGTHEN the integration process of Latin America, in order to achieve the objectives set out in the Treaty of Montevideo 1980, through the conclusion of agreements open to the participation of the other member countries of the Latin American Integration Association, which will allow the formation of an expanded economic space
TO PROMOTE gender mainstreaming in international trade, encouraging equal rights, treatment and opportunities between men and women;
ROBUST the competitiveness of their companies in global markets;
STIMULATE creativity and innovation and promote trade in goods and services that are subject to intellectual property rights;
PROTECT and enforce labor rights, improve working conditions and living standards, strengthen cooperation and capacity of the Parties in labor matters;
IMPLEMENT this Agreement in a manner consistent with the protection and conservation of the environment
PROMOTE sustainable development;
CONSERVE, protect and improve the environment, including through the management of natural resources in their respective territories and through multilateral environmental agreements to which they are both party;
PRESERVE your flexibility to safeguard the public welfare,
HAVE AGREED on the following:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. Initial Provisions
1. The Parties, pursuant to Article XXIV of the GATT 1994, Article V of the GATS and the Treaty of Montevideo 1980, establish a free trade area in accordance with the provisions of this Agreement.
2. Recognizing the intention of the Parties to this Agreement to coexist with their existing international agreements:
(a) Each Party confirms its rights and obligations with respect to the other Party under existing international agreements to which both Parties are party, including the WTO Agreement.
(b) If a Party considers that a provision of this Agreement is incompatible with a provision of another agreement to which both Parties are party, the Parties shall, upon request, consult with a view to reaching a mutually satisfactory solution. This paragraph is without prejudice to the rights and obligations of the Parties under Chapter 18 (Dispute Settlement).
(c) For purposes of this Agreement, the Parties agree that the fact that an agreement provides for more favorable treatment of goods, services, investments or persons than that provided for under this Agreement does not mean that an inconsistency within the meaning of paragraph 2(b) exists.
Article 1.2. General Definitions for Purposes of this Agreement, Unless Otherwise Specified In this Agreement:
ACE N° 35 means Economic Complementation Agreement Mercosur - Chile N° 35
Agreement means the Free Trade Agreement between the Republic of Chile and the Oriental Republic of Uruguay;
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights contained in Annex 1 C of the WTO Agreement;
Antidumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 contained in Annex 1A of the WTO Agreement;
Customs Valuation Agreement means the Agreement on the Application of the Article VI of the General Agreement on Tariffs and Trade 1994 contained in Annex 1A of the WTO Agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures contained in Annex 1A of the WTO Agreement
TBT Agreement means the Agreement on Technical Barriers to Trade; contained in Annex 1A of the WTO Agreement
SCM Agreement means the Agreement on Subsidies and Countervailing Measures contained in Annex 1A of the WTO Agreement;
WTO Agreement means the Marrakech Agreement Establishing the World Trade Organization, done at Marrakech on April 15, 1994;
Agreement on Safeguards means the Agreement on Safeguards contained in Annex 1A of the WTO Agreement;
GATS means the General Agreement on Trade in Services contained in Annex 1B of the WTO Agreement;
ALADI means Latin American Integration Association, established by the Treaty of Montevideo of 1980;
goods means a commodity, product or merchandise;
Commission means the Free Trade Commission established pursuant to Article 17.1 (Free Trade Commission);
days means calendar days, including weekends and holidays; existing means in effect on the date of entry into force of this Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 contained in Annex 1A of the WTO Agreement;
measure includes any law, regulation, procedure, requirement or practice;
National means a natural person who has the nationality of a Party:
(a) In the case of Chile, a Chilean as defined in Article 10 of the Political Constitution of the Republic of Chile, and
(b) In the case of Uruguay, a natural person who holds Uruguayan citizenship in accordance with Articles 73, 74 and 75 of the Constitution of the Oriental Republic of Uruguay;
or a permanent resident of a Party;
OIE stands for International Organization of Epizootics;
WIPO stands for World Intellectual Property Organization;
WTO means the World Trade Organization;
person means an individual or a company;
person of a Party means a national or an enterprise of a Party;
SMEs means small and medium enterprises, including micro enterprises;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, and Chapter Notes, as adopted and implemented by the Parties in their respective legislation
territory means:
(a) For Chile, the land, sea and air space under its sovereignty, and the exclusive economic zone and the continental platform over which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic legislation;
(b) For Uruguay, the land space, internal waters, territorial sea, air space under its sovereignty, the exclusive economic zone and the continental shelf, over which it exercises sovereign and jurisdictional rights, in accordance with international law, and
Montevideo Treaty 1980 means the Montevideo Treaty creating the Latin American Integration Association.
Chapter 2. TRADE IN GOODS
Section A. Trade In Goods
Article 2.1. National Treatment
Each Party shall accord national treatment to the goods of the other Party in accordance with Article II of the GATT 1994 and its interpretative notes, which are incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.2. Trade Liberalization Program
Each Party shall provide the tariff preferences contained in Article 2 of Title II (Trade Liberalization Program) of ACE No. 35, which is incorporated into and forms part of this Agreement, mutatis mutandis.
Article 2.3. Export Taxes
Except as provided in Annex 2.3, neither Party shall apply new export taxes to each other's trade or increase the incidence of existing taxes in a discriminatory manner from the entry into force of this Agreement.
Article 2.4. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, neither Party may adopt or maintain prohibitions or restrictions on imports of any goods of the other Party or on exports or sales for export of any goods destined for the territory of the other Party, except as provided in Article XI of the GATT 1994, including its interpretative notes. To this end, Article XI of the GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
2. The Parties understand that the rights and obligations of the GATT 1994 incorporated in paragraph 1 prohibit, under any circumstances where another form of restriction is prohibited, a Party from adopting or maintaining it:
(a) Export and import price requirements, except as permitted in compliance with antidumping and countervailing duty orders and obligations
(b) Licensing of imports on the condition of meeting a performance tequirement, or
(c) Voluntary export restrictions not consistent with Article VI of GATT 1994, as applied under Article 18 of the SCM Agreement and Article 8.1 of the ADA.
3. Paragraphs 1 and 2 shall not apply to the measures set out in Annex 2.4.
Article 2.5. Agricultural Export Subsidies
1. The Parties share the objective of the multilateral elimination of subsidies on exports of agricultural goods and will work together to achieve the effective implementation of WTO commitments to eliminate such subsidies and to prevent their reintroduction in any form.
2. Neither Party shall introduce or maintain trade-distorting export subsidies on any agricultural good destined for the territory of the other Party.
3. For purposes of this Article, export subsidies shall have the same meaning assigned to that term in Article 1(e) of the Agreement on Agriculture, which forms part of the WTO Agreement, including any amendment to that Article.
Article 2.6. Commercial Sample Regime
The Parties will make every effort to expedite and simplify the procedures related to the entry of samples with no commercial value. This activity will be carried out within the framework of the Committee on Trade in Goods.
Article 2.7. Committee on Trade In Goods
1. The Parties hereby establish a Committee on Trade in Goods (hereinafter referred to as the "Committee"), composed of representatives of each Party.
2. The Committee shall meet at the request of either Party or the Commission to consider any matter under this Chapter.
3. The functions of the Committee shall include:
(a) To promote trade in goods between the Parties and other matters as appropriate; and
(b) Consider barriers to trade in goods between the Parties, in particular those related to the application of non-tariff measures, and if necessary submit these matters to the Commission for consideration.
Section B. Regime of Origin
Article 2.8. Regime of Origin
1. Each Party shall apply the origin regime provided for in Article 13, paragraph 1 of Title III, and contained in Annex 13 and Appendices to ECA No. 35, as well as its amendments, which are incorporated into and form part of this Agreement, mutatis mutandis (1) .
2. In order for goods originating in Chile and Uruguay to benefit from the provisions of this Agreement, the Certificate of Origin contained in Annex 2.8 must be presented.
3. The Parties may modify or update the Rules of Origin. Such modifications or updates shall be adopted by a decision of the Commission, as set forth in Article 17.2.2 (a) (i) (Functions of the Commission).
Chapter 3. TRADE FACILITATION
Article 3.1. Customs Procedures and Trade Facilitation
Each Party shall ensure that its customs procedures are applied in a predictable, uniform, and transparent manner, and shall apply information technology to make its controls more efficient and facilitate legitimate trade.
Article 3.2. Publication
1. Each Party shall publish, including on the Internet, its customs legislation, regulations, and procedures; as well as information on customs import, export, and transit procedures; and required forms and documents.
2. Each Party shall designate or maintain one or more contact points for customs consultations, and shall make available on the Internet readily accessible information on the mechanism for formulating such consultations.
Article 3.3. Opportunity to Make Observations Before the Entry Into Force of Customs Resolutions of General Application
Each Party shall provide, to the extent practicable, opportunities and adequate time for interested persons involved in foreign trade to make comments and ask questions on proposals to introduce or amend customs rulings of general application relating to customs procedures, prior to their entry into force, which shall in no case be binding on the customs administration.
Article 3.4. Advance Rulings
1. Each Party shall issue, prior to the importation of goods into its territory, an advance ruling upon written request by an importer in its territory or an exporter or producer in the territory of the other Party. (1)
2. In the case of an exporter or producer in the territory of the other Party, the request must be made through a representative established in the territory of the Party to whom the request is addressed.
3. Advance Rulings will be issued with respect to
(a) The tariff classification of goods;
(b) The application of customs valuation criteria for a particular case, in accordance with the provisions contained in the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1995
(c) The application of refunds, deferrals or other exemptions from the payment of customs duties;
(d) The originating status of a good, in accordance with Section B of Chapter 2 (Rules of Origin), and
(e) Such other matters as the Parties may agree.
4. Each Party shall issue an advance ruling within 150 days of the request, provided that the requestor has submitted all the information the Party requires, including, if the Party requests, a sample of the property, for which the requestor is requesting an advance ruling.
5. The advance ruling shall be valid as of the date of its issuance or any later date specified therein, and shall remain in effect as long as the facts or circumstances on which it is based have not changed.
6 The Party issuing the advance ruling may modify or revoke it, ex officio or upon request, as appropriate, in the following cases
(a) When the anticipated resolution has been based on an error;
(b) When the circumstances or facts on which it is based change, or
(c) To comply with an administrative or judicial decision, or to comply with a change in the law of the Party that issued the decision.
7. No Party shall retroactively apply a revocation or amendment to the detriment of the applicant, unless the decision was based on incomplete, inaccurate, or false information provided by the applicant.
8. Subject to the confidentiality requirements of its laws, each Party shall make publicly available, including on the Internet, the advance rulings it issues.
9, The Party issuing the advance ruling may apply appropriate sanctions or measures, including civil, criminal, and administrative actions, if the applicant provided false information or omitted relevant facts or circumstances related to the advance ruling or failed to act in accordance with the terms and conditions of the advance ruling.
Article 3.5. Review and Appeal
Each Party shall ensure in respect of its administrative acts in customs matters that any person subject to such acts in its territory has access to
(a) An administrative review before an independent administrative authority or superior to the official or office that issued such an administrative act, and
(b) A judicial review of administrative acts.
Article 3.6. Dispatch of Goods
1. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods to facilitate legitimate trade between the Parties.
2, Pursuant to paragraph 1, each Party shall adopt or maintain procedures that
(a) Provide for clearance within a period no greater than that required to ensure compliance with customs legislation and, to the extent possible, to clear the goods within 48 hours of arrival; and
(b) Allow, to the extent permitted by your legislation and provided that all regulatory requirements have been met, the goods to be dispatched at the point of arrival, without temporary transfer to warehouses or other premises.
3. Each Party shall ensure, to the extent possible, that its competent authorities in the control of the import and export operations of goods coordinate, inter alia, information and document requirements, establishing a single point in time for physical verification, without prejudice to the controls that may be applicable in the case of post- dispatch audits.
4. The Parties undertake, to the extent possible, to calculate and publish the average time required for the release of goods, periodically and in a uniform manner, using tools such as the "Guide to the Measurement of Time Required for the Release of Goods" adopted by the Permanent Technical Committee of the World Customs Organization (hereinafter referred to as the "WCO").
Article 3.7. Automation
1. Each Party shall endeavor to use information technologies that expedite procedures for the release of goods.
2. To that effect the Parties:
(a) They shall endeavour to use international standards and to make electronic systems accessible to users in the customs administration, where appropriate;
(b) They will provide for the electronic transmission and processing of information and data prior to the arrival of the shipment, in order to allow for the dispatch of the goods upon their arrival;
(c) They are committed to advance in the implementation of the Standard related to the Computerization of the International Cargo Manifest / Customs Transit Declaration and the Monitoring of the Operation between the States Parties of Mercosur under the International Land Transport Agreement;
(d) They will provide for the processing of customs import and export operations through electronic documents and the possibility of digitizing the documents supporting customs declarations, as well as the use of validation mechanisms, previously agreed upon by the customs administration of both parties, for the electronic exchange of information in a secure manner;
(e) They will adopt procedures that allow the option of electronic payment of duties, taxes, fees and charges collected by the customs administration that are due at the time of import and export;
(f) They will preferably use electronic or automated systems for risk analysis and management;
(g) They shall work on the interoperability of the electronic systems of the Parties' customs administrations in order to facilitate the exchange of international trade data, ensuring the same levels of confidentiality and data protection as those provided for in each Party's legislation; and
(h) They will work to develop a set of common data elements and processes in accordance with the WCO Data Model and its recommendations and guidelines in the development of their import, export and transit formalities and procedures.
3. In order to comply with the provisions of subparagraphs (d), (f) and (g), the Parties, through their customs administrations, will advance in the exchange of previously agreed data that are in their computer systems in the format of the Information Exchange System of the Customs Registries of MERCOSUR (INDIRA).
Article 3.8. Acceptance of Copies
1. Each Party shall endeavor, where appropriate, to accept hard copies or electronic copies of supporting documents required for import, export, or transit formalities.
2. Where an original of such a document is already in the possession of a government agency of a Party, any other agency of that Party shall, where appropriate, accept in lieu of the original a paper or electronic copy provided by the agency in whose possession the original is held.
Article 3.9. One-Stop Foreign Trade Shops
The Parties shall implement and strengthen their Single Points of Contact for Foreign Trade (hereinafter referred to as "SCOPs") for trade facilitation and facilitation, and shall strive to achieve interoperability between them in order to exchange information to facilitate bilateral trade.
Article 3.10. Administration or Risk Management Systems
1. Each Party shall adopt or maintain risk management or administration systems, preferably using computerized procedures for the automated processing of information, that allow its customs administration to concentrate its control activities on high-risk goods and that simplify the clearance and movement of low-risk goods, while respecting the confidentiality of information obtained through such activities.