(i) manufacturing or processing operations in the territory of either Party; or,
(ii) used goods collected in the territory of either Party, provided that such goods serve only for the recovery of raw materials; or,
(j) goods produced in the territory of one or more of the Parties exclusively from the goods referred to in subparagraphs (a) through (i) or their derivatives, at any stage of production.
Generally Accepted Accounting Principles means those on which there is recognized consensus or which enjoy substantial and authoritative support, in the territory of a Party and at a given point in time, with respect to the recording of revenues, expenses, costs, assets and liabilities, the disclosure of information and the preparation of financial statements. The principles may cover procedures of general application as well as detailed standards, practices and procedures.
Production means methods of obtaining goods including but not limited to growing, breeding, raising, raising, mining, harvesting, fishing, trapping, hunting, trapping, catching, harvesting, gathering, extracting, manufacturing, processing, assembling or disassembling a good.
Producer means a person who carries out a production process.
Ruling of origin means the written document issued by the customs authority as a result of a procedure verifying whether a good qualifies as originating under this Chapter.
Preferential tariff treatment means the tariff applicable to an originating good under this Agreement. Value means the value of a good or material for purposes of the application of this Chapter.
Transaction value means the price paid or payable for a good determined in accordance with the provisions of the Customs Valuation Agreement.
Article 4.27. Transitional Provision
Pending the definition of the specific origin requirements for products of the textile and apparel and footwear sector, Chapters 50 to 64 of NALADISA 2007, the provisions of Resolution 252 of the ALADI Committee of Representatives shall apply; the modifications and/or additions agreed within the framework of ALADI to said Resolution shall not be applicable within the framework of this Agreement.
Chapter 5. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 5.1. Publication
1. Each Party shall, in accordance with the provisions of its national legislation, publish its customs laws, regulations and administrative procedures on the Internet.
2. Each Party shall designate one or more points of contact to whom interested persons may address customs-related inquiries, and shall make available on the Internet information on the procedures for making and responding to such inquiries.
3. To the extent practicable, each Party shall publish in advance any regulations of general application with respect to customs matters that it intends to adopt and shall provide an opportunity to comment on such regulations prior to their adoption.
Article 5.2. Clearance of Goods
1. Both Parties shall adopt and maintain simplified customs procedures to achieve an efficient and expeditious customs clearance mechanism.
2. In order to achieve this objective, the Parties undertake to ensure that, as far as possible, the customs clearance of goods is carried out:
(a) within 48 hours after the arrival of the goods;
(b) at the place of arrival and without necessarily being moved and temporarily deposited in warehouses or other facilities;
(c) prior to the presentation of the goods to the customs authority, in accordance with the procedures established by each Party.
Article 5.3. Automation
1. The Parties shall work to ensure that the adoption of the use of information technology allows for expeditious procedures in the clearance of goods. When installing computer applications the Parties shall take into account international norms or standards.
2. The Parties shall adopt or maintain accessible computerized systems to enable users authorized by the Customs authority to transmit their declarations.
3. The Parties shall provide for the electronic recording and processing of information and data to be used for the purpose of improving risk analysis and risk management techniques.
4. The Parties shall work to develop electronic systems compatible with those of the other Party's customs authority to facilitate the exchange of international trade information between the Parties in accordance with Articles 5.5 and 5.6 of this Chapter.
Article 5.4. Risk Management
Each Party shall endeavour to adopt or maintain risk management systems in its control activities that enable its customs authority to focus its inspection activities on high-risk goods and to simplify the clearance and movement of low-risk goods.
Article 5.5. Customs Cooperation
Cooperation and mutual assistance in customs matters shall be governed by the provisions of Annex 5.1.
Article 5.6. Confidentiality
1. Any information which is by its nature confidential or which is provided on a confidential basis for the purposes of this Chapter shall be treated as such by the relevant authorities, who shall not disclose it without the express permission of the person or institution that provided the information, subject to the exceptions set out in paragraph 2 of this Article.
2. Without prejudice to the domestic law of each Party, confidential information obtained under this Chapter may be disclosed only to judicial authorities and to authorities responsible for customs or tax matters, as appropriate.
Article 5.7. Expedited Delivery Shipments
Each Party shall adopt or maintain separate and expeditious customs procedures for expedited shipments while maintaining adequate screening and control by the customs authority. These procedures shall allow for:
(a) that the information necessary for the clearance of the consignment can be presented to and processed by the Party's customs authority prior to the arrival of the consignment;
(b) that a shipper shall present a single manifest or document covering all goods contained in a consignment transported by an express delivery service, if possible by electronic means;
(c) that, to the extent possible, reduce the documentation required for the clearance of the shipment; and
(d) that, under normal circumstances, the shipment is cleared expeditiously, in accordance with the procedures of each Party.
Article 5.8. Review and Challenge
Each Party shall ensure that, with respect to its administrative acts on customs matters, importers in its territory have access to:
(a) a level of administrative review independent of the official or office that adopted the administrative act subject to review; and,
(b) an instance of judicial review of the administrative act issued at the final level of administrative review.
Article 5.9. Sanctions
Each Party shall adopt or maintain measures to provide for the imposition of civil, administrative and, where appropriate, criminal penalties for non-compliance with its customs laws and regulations.
Article 5.10. Advance Rulings
1. Each Party may, prior to the importation of a good into its territory, issue advance tariff classification rulings in writing, upon written request of the importer in its territory, in accordance with procedures established by each Party.
2. Each Party shall provide that advance rulings shall take effect from the date of their issuance, or other date specified in the ruling, provided that the elements on which the ruling is based have not changed.
3. When an importer requests the treatment accorded to a good pursuant to the advance ruling, the customs authority may assess whether the elements of the importation are consistent with the facts or circumstances on which the advance ruling was based.
4. If the requester provides false information or omits relevant facts or circumstances in its request for an advance ruling, or fails to act in accordance with the terms and conditions of the ruling, the importing Party may apply appropriate measures, which may include civil, criminal and administrative actions, fines or other sanctions.
Article 5.11. Committee on Customs Matters and Trade Facilitation
1. The Parties establish the Committee on Customs Matters and Trade Facilitation, composed of representatives of each Party.
2. The Committee on Customs Matters and Trade Facilitation shall meet at the request of the Commission or of one of the Parties.
3. The Committee shall have the following functions:
(a) propose to the Commission the adoption of customs practices and guidelines to facilitate trade between the Parties, in line with developments in the World Customs Organisation and WTO guidelines;
(b) propose solutions to the Commission on disputes arising in connection with:
(i) interpretation and application of this Chapter;
(ii) customs tariff classification matters; and,
(iii) other issues related to practices or procedures adopted by the Parties that impede the expeditious clearance of goods.
(c) ensure compliance with the provisions of this Chapter and its Annex;
(d) propose to the Commission alternative solutions to trade facilitation-related obstacles or difficulties between the Parties;
(e) provide the report to the Commission, setting forth its findings and recommendations, when, at the request of the Commission and upon request of a Party, a proposal is made to amend this Chapter; and
(f) any other matter that the Committee considers relevant.
Chapter 6. Trade Defense
Section A. Bilateral Safeguard Measures (8)
Article 6.1. Safeguarding Clauses
1. Subject to prior notice, the Parties may apply the ALADI Regional Safeguard Regime, approved by Resolution 70 and its amendments of the Committee of Representatives of the Association, to imports made under the Release Program of this Agreement, with the following limitations:
(a) In cases where reasons of imbalance in the overall balance of payments of one of the Parties are invoked, the measures to be adopted may be for a period of up to one year and may be non-discriminatory and non-selective, applying even tariff surcharges affecting all imports.
(b) In cases in which the importation of one or more products benefiting from the application of Chapter 3 of this Agreement causes or threatens to cause significant injury to domestic production of like or directly competitive goods, the Parties may apply safeguard clauses, on a transitional and non-discriminatory basis, for a period of one year.
2. The extension of the safeguard clauses for a new period shall require a joint review by the Parties of the background and grounds justifying their application, which must necessarily be reduced in its intensity and magnitude until its total expiration at the expiration of the new period, which may not exceed one year.
3. The Commission shall define, within 90 days of its establishment, what shall be understood by significant injury, and shall define the procedures for the application of the rules of this Chapter.
Article 6.2. Public Prices
The Parties recognise that public pricing policies may have distorting effects on bilateral trade. Accordingly, they agree not to resort to public pricing practices and policies that would nullify or impair the benefits accruing directly or indirectly under this Agreement.
Article 6.3. Global Safeguarding Measures
1. Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the Agreement on Safeguards.
2. This Agreement confers no additional rights or obligations on the Parties with respect to actions taken pursuant to Article XIX of the GATT 1994 and the Agreement on Safeguards.
Section B. Antidumping and Countervailing Duties
Article 6.4. Antidumping and Countervailing Duties
1. Each Party retains its rights and obligations under the WTO Agreement with respect to the application of anti-dumping and countervailing duties.
2. Nothing in this Agreement, including the provisions of Chapter 14, shall be construed to impose any rights or obligations on the Parties with respect to antidumping and countervailing duty measures.
Chapter 7. SANITARY AND PHYTOSANITARY MEASURES
Article 7.1. Objectives
1. To protect human life and health, animal and plant health, facilitate trade and strengthen Parties' capacities for the implementation of the SPS Agreement.
2. Prevent sanitary, phytosanitary and food safety measures adopted by the Parties from constituting unjustified barriers to trade.
Article 7.2. General Provisions
1. The Parties shall be bound by the provisions of the SPS Agreement and decisions adopted by the WTO Committee on Sanitary and Phytosanitary Measures, with respect to the adoption and application of all sanitary and phytosanitary measures.
2. The definitions in Annex A of the SPS Agreement, as well as those set out in the glossaries of harmonized terms of the relevant international organizations: the World Organisation for Animal Health (OIE), the International Plant Protection Convention (IPPC) and the Codex Alimentarius Commission (Codex), shall apply to this Chapter.
3. The animal health and food safety standards referred to in this Chapter are also understood to refer to hydrobiological resources, including products and by-products.
Article 7.3. Rights and Obligations
1. The Parties confirm their rights and obligations under the SPS Agreement. In addition to the foregoing, the Parties shall be bound by the provisions of this Chapter on a supplementary basis.
2. The Parties agree to make joint efforts for the effective implementation of the SPS Agreement and the provisions of this Chapter, with a view to facilitating bilateral trade.
3. The Parties, through mutual cooperation, shall endeavour to ensure food safety, prevent the entry and spread of pests and diseases, and improve plant and animal health.
Article 7.4. Agreements between Competent Authorities
1. In order to facilitate the implementation of the SPS Agreement and this Chapter, the competent sanitary, phytosanitary, and food safety authorities of the Parties, as listed in Annex 7.1, may enter into cooperation and coordination agreements to facilitate the exchange of goods without sanitary risk to both Parties.
2. Such agreements may deepen and/or establish the mechanisms and instruments necessary to achieve transparency, fluidity and deadlines in the procedures for the determination of equivalence, recognition of areas free or of low pest or disease prevalence, control, inspection, approval and certification, among others, and in all cases shall be compatible with the provisions of this Chapter. These agreements shall also have as their objective the development of the technical and institutional capacities in sanitary, phytosanitary and food safety matters of the Parties, with a view to strengthening bilateral trade.
3. For the proper implementation of the Chapter, bilateral contact and information exchange between the sanitary, phytosanitary and food safety agencies of the Parties shall be promoted and strengthened.
Article 7.5. Committee on Sanitary and Phytosanitary Measures
1. The Parties establish a Committee on Sanitary and Phytosanitary Measures to address matters relating to the implementation of this Chapter.
2. The Committee shall be composed of delegates with decision-making powers from the competent authorities, as identified in Annex 7.1.
3. The Committee shall meet no later than 180 days after the entry into force of this Agreement, once a year or as otherwise agreed by the Parties. For this purpose, it shall meet in person, by teleconference, videoconference, or by other means that ensure an adequate level of functioning.
4. At its first session the Committee shall establish its rules of procedure and a programme of work, which shall be updated according to matters of interest proposed by the Parties.
5. The functions of the Committee shall be:
(a) improve bilateral understanding on specific implementation issues relating to the SPS Agreement;
(b) establish working groups or ad-hoc technical panels, and determine their mandates, objectives, functions and deadlines for them to present the results of their work on matters relating to harmonization; equivalence; risk assessment and appropriate level of protection; recognition of pest and disease free areas and areas of low pest and disease prevalence; and control, inspection, approval and certification procedures, among others;
(c) serve as a forum for monitoring the commitments set out in the work programmes;
(d) assess progress in addressing and resolving sanitary, phytosanitary and food safety issues that may arise between the Parties;
(e) serve as a forum to encourage and facilitate the conduct of technical consultations under Article 7.6, where a Party so notifies the Committee;
(f) ensure the development and implementation of the procedures set out in the provisions of this Chapter;
(g) consult on matters, positions and agendas of meetings of the SPS Committee, Codex, IPPC, OIE, as well as other international or regional fora of which both Parties are members;
(h) keep Annex 7.1 on competent authorities and contact points up to date;
(i) promote, coordinate and follow up technical cooperation programmes on sanitary, phytosanitary and food safety matters; and
(j) such other functions as the Parties may agree.
6. The Committee shall have the power to adopt decisions relating to the application of the provisions of this Chapter, and the Parties shall adopt the necessary measures to ensure compliance (9). These decisions shall be notified to the Commission.
Article 7.6. Technical Consultations
1. In the event that a Party considers that a sanitary, phytosanitary or food safety measure unduly affects its trade with the other Party and that consultations or the normal exchange of information between the competent authorities have failed to resolve the situation, the complaining Party may notify the request for technical consultations to the Committee on Sanitary and Phytosanitary Measures of this Agreement, through its coordinating competent authority, which shall be responsible, together with the coordinating competent authority of the other Party, for facilitating the conduct of the requested technical consultations.
2. Such technical consultations shall be held within 60 days of receipt of the request, unless the Parties agree otherwise, and may be held via teleconference, videoconference, or any other means mutually agreed by the Parties.
3. Where the Parties have had recourse to technical consultations pursuant to this Article, such consultations shall, at the option of the complaining Party, replace those provided for in Article 14.4.
Article 7.7. Competent Authorities
The competent authorities of the Parties, which shall develop regular direct channels of communication between themselves, are those listed in Annex 7.1.
Chapter 8. Technical Barriers to Trade
Article 8.1. Objectives
Increase and facilitate trade by improving implementation of the TBT Agreement, eliminating unnecessary technical barriers to trade and increasing bilateral cooperation.
Article 8.2. Scope of Application
1. This Chapter applies to standards, technical regulations and conformity assessment procedures (10)of the Parties that may affect, directly or indirectly, trade in products between the Parties.
2. The provisions of this Chapter do not apply to sanitary and phytosanitary measures, which shall be governed by Chapter 7 of this Agreement.
3. This Chapter shall not apply to procurement specifications established by governmental agencies as of the date on which the Chapter on Government Procurement to be negotiated pursuant to Article 16.5 of this Agreement enters into force.
Article 8.3. Confirmation of the TBT Agreement
The Parties confirm the rights and obligations existing between them under the TBT Agreement.
Article 8.4. Standards
1. In developing, adopting and implementing standards, the Parties shall comply with Article 4 of the TBT Agreement.
2. Parties shall use international standards, or relevant parts thereof, as the basis for their technical regulations and related conformity assessment procedures where relevant international standards exist or their final formulation is imminent, except where such international standards or relevant parts thereof would be an ineffective or inappropriate means for the achievement of legitimate objectives.
3. In this regard, the Parties shall apply the decision of the WTO Committee on Technical Barriers to Trade, set out in G/TBT/1/Rev.8 of 23 May 2002, Section IX "Decision of the Committee on Principles Guiding the Development of International Standards, Guidance and Recommendations on Articles 2 and 5 and Annex 3 of the Agreementâ.
4. Where appropriate, the Parties shall cooperate with each other, in the context of their participation in international standardizing bodies, to ensure that international standards developed within such organizations, which are likely to form the basis for technical regulations, are trade facilitating and do not create unnecessary obstacles to international trade.
Article 8.5. Trade Facilitation
The Parties shall intensify their joint work in the field of standards, technical regulations and conformity assessment procedures with a view to facilitating access to their respective markets. In particular, the Parties shall seek to identify bilateral initiatives that are appropriate for particular issues or sectors. Such initiatives may include: cooperation on regulatory matters, such as convergence, or equivalence of technical regulations and standards, alignment with international standards, reliance on a supplier's declaration of conformity, recognition and acceptance of the results of conformity assessment procedures, the use of accreditation to qualify conformity assessment bodies, mutual recognition agreements, as well as technical cooperation and collaboration of the Parties.
Article 8.6. Technical Regulations
1. Technical regulations shall not be more trade-restrictive than necessary to fulfil a legitimate objective, taking account of the risks that would be created by failure to fulfil that objective. Such legitimate objectives include: the imperatives of national security; the prevention of deceptive practices; the protection of human health or safety, animal or plant life or health, or the environment. In assessing these risks, relevant elements to be taken into consideration include, inter alia: available scientific and technical information, related processing technology or end uses for which the products are intended.
2. With respect to technical regulations, each Party shall accord to products of the other Party national treatment and treatment no less favorable than that accorded to like products originating in any other country.
3. Adopted technical regulations shall not be maintained if the circumstances that led to their adoption no longer exist, or if the objectives determined can be met in a less restrictive manner.
4. Each Party shall favorably consider accepting as equivalent technical regulations of the other Party, even if those regulations differ from its own, provided that those technical regulations produce results that are equivalent to those produced by its own technical regulations in achieving its legitimate objectives and achieving the same level of protection.
5. 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.
Article 8.7. Conformity Assessment
1. Recognizing the existence of differences in conformity assessment procedures in their respective territories, the Parties shall use their best endeavours to achieve compatibility of their conformity assessment procedures in accordance with international conformity assessment standards and the provisions of this Chapter.
2. The Parties recognize that a wide range of mechanisms exist to facilitate the acceptance of conformity assessment results, including:
(a) the importing Party's reliance on a supplier's declaration of conformity;
(b) voluntary recognition agreements between conformity assessment bodies in the territory of each Party;