2. The customs administrations of each Party shall apply selective control for the clearance of goods, based on risk analysis criteria, using, among others, non-intrusive means of inspection and tools incorporating modern technologies, in order to reduce physical inspection of goods entering their territory.
Article 3.11. Authorized Economic Operator
1. The Parties' customs administrations shall promote the implementation and strengthening of Authorized Economic Operator (hereinafter referred to as "AEO") Programs in accordance with the WCO Framework of Standards to Secure and Facilitate Global Trade.
2. To this end, the Parties undertake to exchange information on the current status of their respective programmes, with the aim of making them compatible as far as possible, and to sign, within 12 months of the entry into force of this Agreement, an Action Plan with a view to reaching a mutual recognition agreement.
Article 3.12. Cooperation and Mutual Assistance In Customs Matters
1. Cooperation and mutual assistance between the Parties in customs matters shall be governed by the Agreement on Cooperation, Information Exchange, Data Consultation and Mutual Assistance between the Customs Administrations of the States Parties of MERCOSUR and the Republic of Chile, without prejudice to the specific regulations set forth in the following articles.
2. The Parties, through their customs administrations, will provide cooperation and mutual assistance to ensure compliance with customs legislation, the facilitation of customs procedures and the prevention, investigation and repression of customs offences.
3. The customs administrations of the Parties shall endeavour to provide each other with advice and technical assistance with the aim of
(a) Organize joint training programs on trade facilitation issues;
(b) Improve the application of customs valuation rules;
(c) Develop and implement best practices and techniques to strengthen their risk management systems;
(d) Promote supply chain security and facilitation;
(e) Simplify and improve procedures for customs clearance of goods;
(f) Contribute to the harmonization of documentation used in trade and data standardization;
(g) Improve their customs control processes, including the use of security devices with the use of technologies that guarantee the integrity and security of the cargoes;
(h) Preventing customs offences;
(i) Improve the use of technologies for compliance with laws and regulations governing imports and exports, and
(j) The development of initiatives in mutually agreed areas of interest
Article 3.13. Confidentiality
The Parties undertake to treat as confidential the information provided to eachother, guaranteeing each other the same level of confidentiality and data protection as provided for in the legislation of the Party providing the information.
Chapter 4. SMALL AND MEDIUM ENTERPRISES
Article 4.1. Exchange of Information
1, Each Party shall establish or maintain its own publicly accessible website containing information regarding this Agreement, including:
(a) The text of this Agreement, including all annexes, such as product- specific rules of origin
(b) A summary of this Agreement, and
(c) Information for SMEs, containing
(i) a description of the provisions of this Agreement that the Party considers to be relevant to SMEs; and
(ii) any additional information that the Party considers useful for SMEs interested in benefiting from the opportunities granted by this Agreement.
2. Each Party shall include, on the website referred to in paragraph 1, links to
(a) The equivalent websites of the other Party, and
(b) The websites of its government agencies and other appropriate entities that provide information that the Party considers useful to any person interested in trading, investing or doing business in the territory of that Party.
3. Subject to the legal system of each Party, the information described in paragraph 2(b) may include:
(a) Customs regulations and procedures;
(b) Regulations and procedures on intellectual property rights
(c) Technical regulations, standards, and sanitary and phytosanitary measures related to import and export;
(d) Regulations on foreign investment;
(e) Procedures for business registration;
(f) Labor regulations, and
(g) Tax information.
4. Each Party shall regularly review the information and links on the website referred to in paragraphs 1 and 2 to ensure that such information and links are up-to- date and correct.
Article 4.2. SME Committee
1. The Parties hereby establish an SME Committee (hereinafter referred to as the "Committee"), composed of government representatives of the Parties responsible for SME matters. The Committee shall be composed:
(a) In the case of Chile, by representatives of the General Directorate of International Economic Relations, or its successor, and
(b) In the case of Uruguay, by representatives of the General Directorate for International Economic Affairs of the Ministry of Foreign Affairs, or its successor.
2. The Committee shall:
(a) Identify ways to assist the Parties' SMEs to take advantage of business opportunities under this Agreement;
(b) Exchange and discuss the experiences and best practices of each Party in supporting and assisting exporting SMEs with respect to, inter alia, training programs, trade education, trade finance, identifying trading partners in the other Party and establishing good business references;
(c) Develop and promote seminars, workshops or other activities to inform SMEs about the benefits available to them under this Agreement;
(d) Explore capacity building opportunities to assist the Parties in developing and improving export advisory, assistance and training programs for SMEs;
(e) Recommend additional information that a Party may include on the website referred to in Article 4.1;
(f) To review and coordinate the Committee's work program with those of other committees and working groups established under this Agreement, as well as those of relevant international bodies, in order not to duplicate those work programs and to identify appropriate opportunities for cooperation to enhance the capacity of SMEs to engage in trade and investment opportunities provided by this Agreement;
(g) Facilitate the development of programs to assist SMEs to participate and integrate effectively in the global supply chain;
(h) Exchange information to assist in monitoring the implementation of this Agreement as it relates to SMEs;
(i) Submit a periodic report of its activities and make appropriate recommendations to the Commission; and
(j) Consider any other matter relating to SMEs that the Committee may decide, including any issues raised by SMEs regarding their ability to benefit from this Agreement.
3. The Committee shall meet within one year of the date of entry into force of this Agreement, and thereafter as deemed necessary.
4. The Committee may seek the collaboration of experts and funding from international organizations to carry out its programs and activities. Article 4.3: Non-application of dispute settlement
No Party may have recourse to the dispute settlement mechanism under Chapter 18 (Dispute Settlement) with respect to any matter arising under this Chapter.
Chapter 5. SANITARY AND PHYTOSANITARY MEASURES
Article 5.1. Definitions
For the purposes of this Chapter, the definitions to be used shall be those set forth in Annex A of the SPS Agreement.
Article 5.2. Objectives
The objectives of this Chapter are:
(a) Protect the health and life of people, animals and plants in the territory of each Party while facilitating trade;
(b) Ensure that the Parties' sanitary and phytosanitary measures do not create unjustified barriers to trade,
(c) Deepen the implementation of the SPS Agreement
Article 5.3. Scope
This Chapter applies to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties.
Article 5.4. General Provisions
The Parties affirm their rights and obligations under the SPS Agreement.
Article 5.5. Transparency and Information Exchange
In addition to the provisions of Article 7 and Annex B of the SPS Agreement, in the notification procedures provided for therein, the Parties shall inform
(a) Changes that occur in the field of animal health and food safety, such as the appearance of exotic diseases, those diseases on the OIE list, and health alerts on food products within 24 hours of the diagnostic detection of the problem;
(b) Changes in the phytosanitary field, such as the appearance of quarantine pests or the spread of pests under official control, as soon as possible after verification, and
(c) Events related to food safety that may cause damage to the consumer, with the possibility of causing repercussions in commercial exchange.
Article 5.6. Committee on Sanitary and Phytosanitary Measures
1. The Parties shall establish a Committee on Sanitary and Phytosanitary Measures (hereinafter referred to as the "Committee"). It shall be composed of government representatives responsible for sanitary and phytosanitary matters.
2. The Committee shall establish its rules of procedure and operation at the first meeting.
3. The Committee shall meet at least once a year, unless the Parties agree otherwise, in person, by teleconference, videoconference, or by other means that ensure an adequate level of operation, and on an extraordinary basis when the Parties consider it necessary.
4. When meetings are face-to-face, they shall be held alternately in the territory of each Party and the host Party shall be responsible for organizing the meeting.
5. The functions of the Committee shall be:
(a) To serve as a forum to discuss problems related to the development or application of sanitary or phytosanitary measures that affect or may affect trade between the Parties, to establish mutually acceptable solutions, and to evaluate progress in the implementation of such solutions;
(b) Improve the effective implementation of this Chapter;
(c) Consider sanitary and phytosanitary issues of mutual interest;
(d) Facilitate communication between the Parties, and
(e) Identify and develop projects for technical assistance and cooperation in sanitary and phytosanitary measures between the Parties
Article 5.7. Competent Authorities and Points of Contact
1. The competent authorities responsible for implementing the measures referred to in this Chapter are listed in Annex 5.7.1.
2. The contact points responsible for communication between the Parties under this Chapter are listed in Annex 5.7.2.
3. The Parties shall report any significant changes in the structure, organization and distribution of responsibilities of their competent authorities or points of contact.
Chapter 6. TECHNICAL BARRIERS TO TRADE
Article 6.1. Objectives
The objectives of this Chapter are:
(a) Recognize and reaffirm the commitments made by both Parties under the TBT Agreement, improving the implementation of the Agreement;
(b) Deepen integration and existing agreements between the Parties on technical barriers to trade issues;
(c) Ensure that standards, technical regulations and conformity assessment procedures do not create unnecessary technical barriers to trade, and
(d) Facilitate, increase and promote cooperation between the Parties.
Article 6.2. Scope
1. The provisions of this Chapter apply to the preparation, adoption and application of all standards, technical regulations and conformity assessment procedures of the Parties, including those at the central level of government and local public institutions, that may directly or indirectly affect trade in goods between the Parties.
2. The provisions of this Chapter do not apply to sanitary and phytosanitary measures, which shall be governed by Chapter 5 (Sanitary and Phytosanitary Measures) of this Agreement.
3. Public procurement specifications prepared by government agencies for the production or consumption needs of such agencies are not subject to the provisions of this Chapter, which shall be governed by the Agreement on Government Procurement between the Republic of Chile and the Eastern Republic of Uruguay, of January 22, 2009.
4. The application of Article 50 of the Treaty of Montevideo 1980, with regard to technical barriers to trade, shall be governed by the provisions of this Chapter.
Article 6.3. Incorporation of the TBT Agreement
The TBT Agreement is incorporated into this Chapter, excluding Articles 10, 11, 12, 13, 14.1, 14.4, and 15, and forms an integral part thereof, mutatis mutandis.
Article 6.4. International Standards
In determining whether an international standard, guidance or recommendation within the meaning of Articles 2 and 5 of the TBT Agreement and Annex 3 thereof exists, each Party shall consider the principles set out in the Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade since January 1, 1995, G/TBT/1/Rev.12 of 21 January 2015, or its successor document, issued by the WTO Committee on Technical Barriers to Trade.
Article 6.5. Cooperation and Trade Facilitation
1. The Parties shall seek to identify, develop, and promote trade facilitation initiatives, as appropriate for particular issues or sectors, related to technical regulations and conformity assessment procedures, taking into account the respective experience of the Parties in other appropriate bilateral, regional, or multilateral arrangements. The Parties shall also seek to identify, develop, and promote joint work between their standards bodies with the aim of facilitating trade. Such initiatives may include, but are not limited to
(a) Intensify joint cooperation to increase knowledge and understanding of their respective systems in order to facilitate market access;
(b) Promote compatibility or equivalence of technical regulations and conformity assessment procedures;
(c) To promote convergence or harmonization with international standards, and
(d) Recognize and accept the results of the conformity assessment procedures.
2. The Parties recognize the existence of a wide range of mechanisms to support greater regulatory coherence and to eliminate unnecessary technical barriers to trade in the region, including:
(a) Encourage regulatory dialogue and cooperation in order to
(i) exchange information on regulatory practices and approaches;
(ii) promote the use of good regulatory practices to improve the efficiency and effectiveness of standards, technical regulations and conformity assessment procedures;
(iii) provide advice and technical assistance, in terms and mutually agreed conditions, to improve practices related to the development, implementation and review of technical regulations, standards and conformity assessment procedures;
(iv) provide technical assistance to the other Party on mutually agreed terms and conditions, for the improvement of practices related to the elaboration, implementation and review of standards, technical regulations, conformity assessment procedures;
(b) Promote, disseminate and exchange experiences and information regarding the possibility of accepting as equivalent the technical regulations of the other Party;
(c) Increase, as far as possible, the harmonization of national standards with international standards, and
(d) Encourage greater use of international standards, guidelines and recommendations as a basis for technical regulations and conformity assessment procedures.
3. With respect to paragraphs 1 and 2, the Parties recognize that the choice of appropriate mechanisms in a given regulatory context will depend on a variety of factors, such as: the product and sector involved, the volume and direction of trade, the relationship between the Parties' respective regulators, the legitimate objectives pursued, and the risks of failing to achieve those objectives.
4. The Parties will intensify the exchange and collaboration of mechanisms to facilitate the acceptance of conformity assessment results, to support greater regulatory consistency and to remove unnecessary technical barriers to trade.
5. The Parties shall encourage cooperation between their respective organizations responsible for technical regulation, standardization, conformity assessment, accreditation and metrology, whether governmental or non-governmental, with a view to addressing various issues covered by this Chapter.
6. The Parties shall seek, to the extent possible, to bring into international standardization forums common positions based on mutual interests.
Article 6.6. Technical Regulations
1. A Party shall, on request of the other Party, explain the reasons why it has not accepted a technical regulation of that Party as equivalent, without prejudice to Article 2.7 of the TBT Agreement.
2. A Party may introduce modifications in a regulation considered not equivalent by the other Party, taking into account the reasons explained according to the previous paragraph. In that case, the other Party shall consider the modified regulation as equivalent, unless it considers that the modifications do not adequately address the reasons stated. In the latter case, the Party shall explain the grounds for its new refusal of equivalence in the terms of the previous paragraph.
3. Where a Party detains at the port of entry a good from the territory of the other Party due to a breach of a technical regulation, it shall notify the importer or the respective customs agent as soon as possible of the reasons for the detention.
Article 6.7. Conformity Assessment
1. Recognizing the existence of differences in conformity assessment procedures in their respective territories, the Parties shall, to the greatest extent possible, make conformity assessment procedures consistent with international standards and with the provisions of this Chapter.
2. The Parties recognize that there is a wide range of mechanisms that facilitate the acceptance of the results of conformity assessment conducted in the other Party's territory, including
(a) Voluntary agreements between conformity assessment bodies located on the territory of both parties;
(b) Agreements on acceptance of the results of conformity assessment procedures with respect to specific technical regulations, carried out by specific bodies located in the territory of the other Party;
(c) The accreditation procedures for qualifying conformity assessment bodies;
(d) Governmental approval or designation of conformity assessment bodies;
(e) Recognition of the results of conformity assessments carried out in the territory of the other Party, and
(f) The acceptance by the importing party of the supplier's declaration of conformity.
3. The Parties will intensify their exchange of information in relation to these and similar mechanisms, in order to facilitate the acceptance of the results of conformity assessment.
4. Where a Party does not accept the results of conformity assessment procedures conducted in the territory of another Party, it shall, at the request of the latter, explain the reasons for its decision so that corrective action may be taken if necessary.
5. One Party shall consider favorably, at the request of the other, the recognition of the results of conformity assessment procedures carried out by bodies located in the territory of the other Party. If either Party refuses to enter into such negotiations, or if it concludes that it will not recognize the results as required, it shall, at the request of the other Party, explain the reasons for its decision. The other Party, after taking appropriate corrective action to address the reasons for non-recognition, may reiterate its request, which shall be given appropriate consideration.
6. In order to enhance mutual confidence in the results of conformity assessment, either Party may request information on aspects such as the technical competence of the conformity assessment bodies involved.
Article 6.8. Transparency
1. The Parties shall notify each other electronically, through the contact point established by each Party, and in accordance with Article 10 of the TBT Agreement, regarding draft and amended technical regulations and conformity assessment procedures, as well as those adopted to address urgent problems as set out in the TBT Agreement, at the same time as they send the notification to the WTO Central Notification Register. Such notification shall include an electronic link to the notified document, or a copy thereof.
2. The Parties should notify even those draft technical regulations and conformity assessment procedures that are consistent with the technical content of relevant international standards.
3. Each Party shall provide a formal response to the comments received from the other Party, during the consultation period stipulated in the notification, and no later than the date on which the adopted technical regulation or conformity assessment procedure is published. In turn, each Party shall publish, make available to the public or to the other Party, either in print or electronically, its responses to significant comments received from the other Party, no later than the date the adopted technical regulation or conformity assessment procedure is published.
4. The Parties shall ensure that information regarding draft and amended technical regulations and conformity assessment procedures, as well as those adopted, are made available to the public on a centralized website or on a website at the central level of government.
5. Each Party shall allow, in accordance with its legal system, interested persons of the other Party to participate in the development of its standards, technical regulations, and conformity assessment procedures, on terms no less favorable than those accorded to its nationals.
6. Each Party shall allow a period of at least 60 days from the date of such notification
5. Each Party shall allow, in accordance with its legal system, interested persons of the other Party to participate in the development of its standards, technical regulations, and conformity assessment procedures, on terms no less favorable than those accorded to its nationals.