Title
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED ARAB EMIRATES AND THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
Preamble
The Government of the United Arab Emirates (hereinafter referred to as “the UAE”) and the Government of the Republic of Indonesia (hereinafter referred to as “Indonesia”);
hereinafter being referred to individually as a “Party” and collectively as “the Parties”;
RECOGNISING the long-standing friendship and strong economic and political ties between the UAE and Indonesia, and wishing to strengthen these links through the creation of a free trade area, thus establishing close and lasting relations;
DETERMINED to build on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization;
CONSCIOUS of the dynamic and rapidly changing global environment brought about by globalisation and technological progress that presents various economic and strategic challenges and opportunities to the Parties;
DETERMINEDto develop and strengthen their economic and trade relations by expanding trade in goods and services in their common interest and for their mutual benefit;
AIMING to promote transfer of technology and expand trade;
CONVINCED that the establishment of a free trade area will provide a more favorable climate for the promotion and development of economic and trade relations between the Parties;
AIMING to facilitate trade by promoting efficient and transparent customs procedures that ensure predictability for their importers and exporters;
DETERMINEDto support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;
AIMING to establishing a clear, transparent, and predictable legal and commercial framework for business planning, that supports the growth of trade and investment;
RECOGNISINGtheir inherent right to regulate and resolve to preserve the flexibility of the Parties to set legislative and regulatory priorities, and protect legitimate public welfare objectives, such as health, safety, environmental protection, conservation of living or non-living exhaustible natural resources, integrity and stability of the financial system, and public morals, in accordance with the rights and obligations provided in this Agreement;
HAVE AGREED, in pursuit of the above, to conclude the following Agreement (hereinafter referred to as “this Agreement”):
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITION
Article 1.1. Establishment of the Indonesia- United Arab Emirates Comprehensive Economic Partnership as a Free Trade Area
The Parties, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish the Indonesia-United Arab Emirate Comprehensive Economic Partnership as a free trade area in accordance with the provisions of this Agreement.
Article 1.2. General Definitions
For the purposes of this Agreement:
(a) administrative ruling of general application means an administrative ruling or interpretation that applies to all persons and fact situations that fall generally within the ambit of that administrative ruling or interpretation and that establishes a norm of conduct, but does not include:
(i) a determination or ruling made in an administrative or quasi-judicial proceeding that applies to a particular person, good, or service of the other Party in a specific case; or
(ii) a ruling that adjudicates with respect to a particular act or practice;
(b) Agreement on Agriculture means the Agreement on Agriculture in Annex 1A to the WTO Agreement;
(c) Anti-Dumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
(d) customs authority means any authority that is responsible under the law of each Party for the administration and enforcement of its customs laws and regulations;
(e) customs duty means any customs or import duty and a charge of any kind imposed in connection with the importation of a good, but does not include any:
(i) charge equivalent to an internal tax imposed consistently with Article III of the GATT 1994;
(ii) anti-dumping or countervailing duty that is applied consistently with Article VI of the GATT 1994, the Anti Dumping Agreement on the Implementation of Article VI of the GATT 1994, and the SCM Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement; or
(iii) fee or other charge commensurate with the cost of services rendered in conformity with Article VIII of the GATT 1994;
(f) customs procedures means the measures applied by the customs authority of a Party to goods and to the means of transport that are subject to its customs laws;
(g) Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
(h) days means calendar days, including weekends and holidays;
(i) GATS means the General Agreement on Trade in Services in Annex 1B to the WTO Agreement;
(j) GATT 1994 means the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
(k) good means any merchandise, product, article, or material;
(l) Harmonized System or HS means the Harmonized Commodity Description and Coding System, including its General Rules for the Interpretation, Section Notes, Chapter Notes and Subheading Notes;
(m) Import Licensing Agreement means the Agreement on Import Licensing Procedures in Annex 1A to the WTO Agreement;
(n) Joint Committee means the Joint Committee established pursuant to Article 18.1 (Joint Committee);
(o) Safeguards Agreement means the Agreement on Safeguards in Annex 1A to the WTO Agreement;
(p) SCM Agreement means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;
(q) SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement;
(r) TBT Agreement means the Agreement on Technical Barriers to Trade in Annex 1A to the WTO Agreement;
(s) territory means:
(i) for the UAE, the land territories, internal waters, territorial sea, including the seabed and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which the UAE has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with international law;
(ii) for Indonesia, the land territories, internal waters, archipelagic waters, territorial sea, including the seabed and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which Indonesia has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with international law, including the United Nations Convention on the Law of the Sea, done at Montego Bay on 10 December 1982;
(t) trade administration documents means forms issued or controlled by a Party that must be completed by or for an importer or exporter in relation to the import or export of goods;
(u) Trade Facilitation Agreement means the Agreement on Trade Facilitation in Annex 1A of the WTO Agreement
(v) TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement;
(w) WTO means the World Trade Organization; and
(x) WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.
Article 1.3. Objectives
The objectives of this Agreement are to enhance and facilitate trade and investment between the Parties in accordance with the provisions of this Agreement.
Article 1.4. Relation to other Agreements
1. The Parties reaffirm their rights and obligations under existing agreements to which both Parties are party, including the WTO Agreement.
2. For greater certainty, this Agreement shall not be construed to derogate from any international legal obligation between the Parties that provides for more favorable treatment of goods, services, investments, or persons than that provided for under this Agreement.
3. Unless otherwise provided in this Agreement, in the event of any inconsistency between this Agreement and any other agreement to which both Parties are party, the Parties shall, upon request, consult with each other with a view to finding a mutually satisfactory solution.
Article 1.5. Regional and Local Government
1. Each Party shall take such reasonable measures as may be available to it to ensure observance of the provisions of this Agreement by the regional and local governments and authorities and by non governmental bodies in the exercise of governmental powers delegated by central, regional, and local governments and authorities within its territory.
2. This provision is to be interpreted and applied in accordance with the principles set out in paragraph 12 of Article XXIV of the GATT 1994 and paragraph 3 of Article I of the GATS.
Article 1.6. Transparency
1. Each Party shall publish or otherwise make publicly available, on the internet where feasible, its laws, regulations, and administrative rulings of general application as well as its respective international agreements, which may affect the operation of this Agreement.
2. Each Party shall, within a reasonable period of time, respond to specific questions and, upon request, provide information to the other Party on matters referred to in paragraph 1.
3. The Parties agree to cooperate in promoting transparency, including through exchange of information and best practices on their respective regulatory processes.
Article 1.7. Confidential Information
1. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information designated as confidential by the other Party.
2. Nothing in this Agreement shall require a Party to disclose confidential information, the disclosure of which would impede law enforcement of the Party, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of any economic operator.
3. Where a Party provides information to the other Party in accordance with this Agreement and designates the information as confidential, the Party receiving the information shall maintain the confidentiality of the information. Such information shall be used only for the purposes specified and shall not be otherwise disclosed without the specific permission of the Party providing the information.
Article 1.8. Promotion of Competition
1. The Parties shall promote competition in their trade and investment by preventing unfair competition policies in their economic relations.
2. No Party shall have recourse to dispute settlement under Chapter 16 (Dispute Settlement) for any matter arising under this Article.
Chapter 2. TRADE IN GOODS
Article 2.1. Definitions
For the purposes of this Chapter:
(a) export subsidy means a subsidy as defined by Article 3 of the SCM Agreement and includes export subsidies listed in Article 9 of the Agreement on Agriculture.
(b) import licensing means an administrative procedure used for the operation of import licensing regimes requiring the submission of an application or other documentation (other than that required for customs purposes) to the relevant administrative body as a prior condition for importation into the customs territory of the importing Party; and
Article 2.2. Scope
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Article 2.3. National Treatment on Internal Taxation and Regulation
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of the GATT 1994, including its interpretative notes. To this end, Article III of the GATT 1994 and its interpretative notes are incorporated into and form part of this Agreement, mutatis mutandis.
Article 2.4. Reduction or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, each Party shall reduce or eliminate customs duties on originating goods of the other Party in accordance with its Schedule in Annex 2A (Schedules of Tariff Commitments).
2. Except as otherwise provided in this Agreement, a Party shall not increase any existing customs duty or introduce a new customs duty on an originating good as set out in its Schedule in Annex 2A (Schedules of Tariff Commitments).
3. If the most-favoured-nation (hereinafter referred to as “MFN” in this Chapter) rate of customs duty applied by a Party on a particular good is lower than the rate of customs duty provided for in its Schedule in Annex 2A (Schedules of Tariff Commitments), that Party shall:
(a) apply the lower rate to the originating good of the other Party; and
(b) publish changes to the MFN rate on the internet.
Article 2.5. Acceleration or Improvement of Tariff Commitments
1. Upon request by either Party, the Parties shall consult to consider accelerating, improving, or broadening the scope of the elimination of customs duties as set out in their Schedule in Annex 2A (Schedules of Tariff Commitments).
2. Further commitments between the Parties to accelerate or broaden the scope of the elimination of a customs duty on a good (or to include a good in Annex 2A (Schedule of Tariff Commitments) shall supersede any duty rate or staging category determined pursuant to their respective Schedules upon the incorporation of the modification into this Agreement in accordance with Article 19.2 (Amendments).
3. Nothing in this Agreement shall prohibit a Party from unilaterally accelerating, or broadening the scope of, the elimination of customs duties set out in its Schedule to Annex 2A (Schedules of Tariff Commitments) to an originating good from the other Party. Any such unilateral acceleration, or broadening of the scope of, the elimination of customs duties will not permanently supersede any duty rate or staging category determined pursuant to their respective Schedule nor serve to waive that Party’s right to impose at a later time the duty rate or staging category that is determined for that later time by their respective Schedule.
4. For greater certainty with respect to paragraph 3, a Party may:
(a) raise a customs duty back to the level established in its Schedule to Annex 2A (Schedule of Tariff Commitments) following a unilateral reduction; or
(b) maintain or increase a customs duty as authorised by the Dispute Settlement Body of the WTO.
Article 2.6. Classification of Goods and Transposition of Schedules of Tariff Commitments
1. The classification of goods in trade between the Parties shall be in conformity with the Harmonized Systems (HS) and its amendments.
2. The Parties shall mutually decide whether any revisions are necessary to implement Annex 2A (Schedule of Tariff Commitments) due to periodic amendments and transposition of the HS Code.
3. If the Parties decide that revisions are necessary in accordance with paragraph 2, the transposition of the Schedules shall be carried out in accordance with the methodologies and procedures adopted by the Committee on Trade in Goods. The said methodologies and procedures should be based on the methodology recommended by the WTO, at a minimum, provide for:
(a) the timely circulation by each Party of a draft schedule of tariff commitments in the nomenclature of the revised HS Code accompanied by a two-way transposition setting out at national tariff line level:
(i) a concordance between the draft schedule of tariff commitments in the nomenclature of the revised HS Code and the schedule of tariff commitments in the nomenclature of the then current HS Code; and
(ii) a concordance between the schedule of tariff commitments in the nomenclature of the then current HS Code and the draft schedule of tariff commitments in the nomenclature of the revised HS Code;
(b) the provision of comments by the other Party on the draft schedules circulated in accordance with subparagraph (a), and consultations between the Parties, as necessary, with a view to resolving any concerns raised. Consultations shall take place within 60 days of a Party requesting such consultations.
4. Following completion of the transposition process in paragraph 3, the Parties through the Committee on Trade in Goods shall endorse and publish such revisions in a timely manner.
5. Each Party shall ensure that the transposition of its schedule of tariff commitments under paragraph 3 does not afford treatment to an originating good of the other Party that is less favourable than that set out in its Schedule in Annex 2A (Schedules of Tariff Commitments).
Article 2.7. Temporary Admission of Goods
1. Each Party shall allow, as provided for in its laws and regulations, goods to be brought into its customs territory conditionally relieved, totally or partially, from payment of import duties and taxes, if such goods:
(a) are brought into its customs territory for a specific purpose; (b) are intended for re-exportation within a specific period; and
(c) have not undergone any change, except normal depreciation and wastage due to the use made of them.
2. Each Party shall, at the request of the importer and for reasons deemed valid by its customs authority, extend the time limit for temporary admission beyond the period initially fixed in accordance with its laws and regulations.
3. Each Party shall not impose any condition on the temporary admission of a good referred to in paragraph 1, other than to require that such good:
(a) be accompanied by a security deposit in an amount no greater than the customs duty and charges according to the respective laws and regulations that would otherwise be owed on importation, which shall be releasable on exportation of the good;
(b) be exported within such period of time as is reasonably related to the purpose of temporary admission;
(c) be capable of identification when imported and exported;
(d) not be sold or leased while in its territory;
(e) not be imported in a quantity greater than is reasonable for its intended use; and
(f) be otherwise admissible into the importing Party’s territory under its laws and regulations.
4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, that Party may apply the customs duty and any other charge (1) that would normally be owed on the good, as per its laws and regulations.
5. Each Party shall permit a good temporarily admitted pursuant to this Article to be re-exported through a customs port other than that through which it was admitted in accordance with its laws and regulations.
6. Each Party shall relieve the importer of liability for failure to export a temporarily admitted good upon presentation of satisfactory proof to its customs authority that the good has been destroyed within the original time limit for temporary admission or any lawful extension. A Party may condition relief of liability under this paragraph by requiring the importer to receive prior approval from its customs authority before the good can be so destroyed.
7. Each Party, through its customs authority, shall adopt and maintain procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, these procedures shall provide that when such goods accompany a national or resident of the other Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national or resident.
Article 2.8. Duty-Free Entry of Commercial Samples of Negligible Value
Each Party shall, in accordance with its respective laws and regulations, grant duty-free entry to commercial samples of negligible value imported from the territory of the other Party, regardless of their origin, but may require that commercial samples of negligible value be imported solely for this solicitation for goods of orders or services provided from the territory of the other Party or a non-Party and not be imported for commercial sale.
Article 2.9. General Elimination of Quantitative Restrictions
Except as otherwise provided in this Agreement, no Party shall adopt or maintain any prohibition or restriction other than duties, taxes, or other charges, whether made effective through quotas, import or export licenses or other measures, on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except in accordance with its rights and obligations under the relevant provisions of the WTO Agreement. To this end, Article XI of the GATT 1994 and its interpretive notes are incorporated into and made a part of this Agreement, mutatis mutandis.
Article 2.10. Import Licensing
1. Neither Party shall adopt or maintain a measure that is inconsistent with the Import Licensing Agreement.
2. Each Party shall ensure that all automatic and non-automatic import licensing measures are implemented in a transparent and predictable manner, and applied in accordance with the Import Licensing Agreement.
3. Promptly after this Agreement enters into force, each Party shall notify the other Party of its existing import licensing procedures, if any. The notification shall contain the information as referred to in paragraph 2 of Article 5 of the Import Licensing Agreement.
4. On request of the other Party, a Party shall, promptly and to the extent possible, respond to the request of that other Party for information on import licensing requirements of general application.
5. A Party shall be deemed to be in compliance with the obligations in paragraph 3 with respect to an existing import licensing procedure if:
(a) it has notified that procedure to the WTO Committee on Import Licensing provided for in Article 4 of the Import Licensing Agreement together with the information specified in paragraph 2 of Article 5 of that Agreement;
(b) in the most recent annual submission due before the date of entry into force of this Agreement for that Party to the WTO Committee on Import Licensing in response to the annual questionnaire on import licensing procedures described in paragraph 3 of Article 7 of the Import Licensing Agreement, it has provided, with respect to that procedure, the information requested in that questionnaire; and
(c) it has included in either the notice described in subparagraph (a) or the annual submission described in subparagraph (b) any information required to be notified to the other Parties under paragraph 8.
6. Each Party shall comply with paragraph 4(a) of Article 1 of the Import Licensing Agreement with respect to any new or modified import licensing procedure. Each Party shall also publish on an official government website any information that it is required to publish under paragraph 4(a) of Article 1 of the Import Licensing Agreement.
7. Each Party shall notify the other Party of any new import licensing procedures it adopts and any modifications it makes to its existing import licensing procedures, if possible, no later than 60 days before the new procedure or modification takes effect. In no case shall a Party provide the notification later than 60 days after the date of its publication. The notification shall include any information required under paragraph 8. A Party shall be deemed to be in compliance with this obligation if it notifies a new import licensing procedure or a modification to an existing import licensing procedure to the WTO Committee on Import Licensing in accordance with paragraph 1 through 3 of Article 5 of the Import Licensing Agreement and includes in its notification any information required to be notified to the other Parties under paragraph 8.
8. (a) A notice under paragraph 3, 5, or 7 shall state if, under any import licensing procedure that is a subject of the notice:
(i) the terms of an import licence for any product limit the permissible end users of the product; or
(ii) the Party imposes any of the following conditions on eligibility for obtaining a licence to import any product:
(A) membership in an industry association;
(B) approval by an industry association of the request for an import licence;
(C) a history of importing the product or similar products;
(D) minimum importer or end user production capacity;
(E) minimum importer or end user registered capital; or
(F) a contractual or other relationship between the importer and a distributor in the Party’s territory.
(b) A notice that states, under subparagraph (a), that there is a limitation on permissible end users or a licence-eligibility condition shall:
(i) list all products for which the end-user limitation or licence-eligibility condition applies; and
(ii) describe the end-user limitation or licence-eligibility condition.
9. Each Party shall respond within 60 days to a reasonable enquiry from the other Party concerning its licensing rules and its procedures for the submission of an application for an import licence, including the eligibility of persons, firms and institutions to make an application, the administrative body or bodies to be approached and the list of products subject to the licensing requirement.
10. If a Party denies an import licence application with respect to a good of the other Party, it shall, on request of the applicant and within a reasonable period after receiving the request, provide the applicant with a written explanation of the reason for the denial.