(ii) tariff classification and valuation matters relating to determinations of origin,
(iii) equivalent procedures and criteria for the request, approval, modification, revocation and implementation of advance rulings,
(iv) revision of the Certificate of Origin,
(v) any other matter referred to it by a Party or the Committee on Trade in Goods and Rules of Origin established under Article 2.19 (National Treatment and Market Access for Goods - Consultations and Committee on Trade in Goods and Rules of Origin), and
(vi) any other customs-related matter arising under this Agreement;
(b) consider:
(i) the harmonization of customs-related automation requirements and documentation, and
(ii) proposed customs-related administrative or operational changes that may affect the flow of trade between the Parties' territories;
(c) report periodically to the Committee on Trade in Goods and Rules of Origin and notify it of any agreement reached under this paragraph; and
(d) refer to the Committee on Trade in Goods and Rules of Origin any matter on which it has been unable to reach a decision within 60 days of referral of the matter to it, under paragraph (a)(v).
2. Nothing in this Chapter prevents a Party from issuing a determination of origin or an advance ruling relating to a matter under consideration by the Customs Procedures Sub-Committee or the Committee on Trade in Goods and Rules of Origin or from taking other action that it considers necessary, pending a resolution of the matter under this Agreement.
Chapter Five. TRADE FACILITATION
Article 5.01. Objectives and Principles
1. With the objectives of facilitating trade under this Agreement and of cooperating to pursue trade facilitation initiatives on a multilateral basis, each Party shall administer its import and export procedures and measures for goods traded under this Agreement on the basis that, to the extent possible:
(a) procedures be efficient to reduce costs for importers and exporters and simplified where appropriate to achieve such efficiency;
(b) procedures be based on international trade instruments or international standards agreed upon by the Parties;
(c) entry procedures be transparent to ensure predictability for importers and exporters;
(d) measures to facilitate trade also support mechanisms to protect persons through effective enforcement of and compliance with national requirements;
(e) those procedures and the personnel involved in them comply with international standards of integrity;
(f) the development of significant modifications to procedures of a Party include, in advance of implementation, consultations with the representatives of the trading community of that Party; and
(g) procedures be based on risk management principles to focus compliance efforts on transactions that merit attention.
2. The Parties shall encourage cooperation, technical assistance and the exchange of information, including information on best practices, for the purpose of promoting the application of and compliance with the trade facilitation measures agreed upon under this Agreement and those agreed upon by the Parties under the auspices of the World Customs Organization or the World Trade Organization.
Article 5.02. Rights and Obligations
1. The Parties affirm their rights and obligations under Article VII (Fees and Formalities Connected with Importation and Exportation) and Article X (Publication and Administration of Trade Regulations) of the GATT 1994.
2. A Party shall promptly release an unrestricted, uncontrolled or non-regulated good. Subject to paragraph 3, each Party shall provide the option of releasing that good either:
(a) at the time of its presentation to the customs administration of the importing Party based on the submission of only the information required before the good arrives or at the time of arrival; for greater certainty, a Party, through its customs administration, may require the submission of more extensive information through post-entry accounting and verifications, as appropriate; or
(b) before or at the time of arrival of the good, based on the submission of all the information necessary to obtain a final accounting of the good.
3. The Parties recognize that, for certain goods, under certain circumstances, such as goods subject to a quota or to health-related or public safety requirements, a Party may require before releasing the goods the submission of more extensive information, before or at the time of arrival of the goods, to allow the competent authorities to examine the goods for release.
4. Each Party shall facilitate and simplify its procedures for the release of low-risk goods, and shall improve procedures on the release of high-risk goods. For these purposes, each Party shall base its examination and release procedures and its post-entry verification procedures on risk management principles, rather than examining every shipment offered for entry in a comprehensive manner for compliance with all import requirements. Nothing in this paragraph prevents a Party from conducting quality control and compliance reviews, which may require more extensive examinations.
5. Each Party shall ensure that the procedures of its competent authorities, whose requirements on the import or export of goods are maintained either by themselves or on their behalf by the Party's customs administration, are coordinated to facilitate trade. To this end, each Party shall take steps to harmonize the data requirements of its competent authorities, with the objective of allowing importers and exporters to present all required data to only one competent authority.
6. In its procedures for the clearance of express consignments, each Party shall apply, to the extent possible, the World Customs Organization's Guidelines for the Immediate Release of Consignments by Customs.
7. In accordance with its domestic law, each Party shall adopt or maintain simplified clearance procedures for the entry of a good that is low in value if the importing Party considers that the revenue associated with the import of that good is not significant.
8. The Parties shall endeavour to achieve common procedures and to simplify the information necessary for the release of goods, applying, when appropriate, existing international standards. With this objective, each Party shall set up a system for the electronic exchange of information between competent authorities and importers, exporters, their agents or their representatives, for the purpose of encouraging rapid release procedures. For the purpose of this Article, and without precluding the use of additional electronic data transmission standards, each Party shall, to the extent possible:
(a) use formats based on international standards for the electronic exchange of information; and
(b) take into account the World Customs Organization's Recommendations "Concerning the Use of UN/EDIFACT Rules for Electronic Data Interchange" and "Concerning the Use of Codes for the Representation of Data Elements".
9. Each Party shall establish means of consultation with its trade and business communities to promote greater cooperation and the exchange of electronic information.
10. Subject to Chapter Four (Customs Procedures), a Party, prior to importation, shall upon request issue a written ruling pertaining to tariff classification, applicable rate of customs duty or any other tax applicable upon importation except a surtax or surcharge.
That request may be made in writing by: (a) an importer in the Party's territory; (b) an exporter or producer in the territory of the other Party; or (c) a representative of a person in subparagraph (a) or (b).
11. Each Party shall adopt or maintain procedures for the issuance of rulings referred to in paragraph 10. A Party may, at any time, modify or revoke a ruling:
(a) without retroactive application after notification to the person that requested the ruling; or
(b) with retroactive application and without notification if inaccurate or false information was provided.
12. When a Party determines that a request for a ruling is incomplete, it may request additional information, including, if appropriate, a sample of the goods or materials in question from the person requesting the ruling. A Party shall issue a ruling within 120 days of receiving all the information it considers necessary to issue the ruling. A ruling shall be binding upon the competent authority that issued the ruling at the time the good is actually imported provided that the facts and circumstances that were the basis for the issuance of the ruling remain in effect.
13. Each Party shall ensure that:
(a) an administrative action or official decision taken in respect of the import or export of a good is reviewable promptly by a judicial, arbitral or administrative tribunal or through administrative procedures;
(b) the administrative tribunal or administrative procedures referred to in subparagraph (a) are:
(i) available before a person is required to seek redress before a judicial or arbitral tribunal, and
(ii) independent of the official or, where applicable, the office responsible for the original action or decision; and
(c) the tribunal or official acting under the administrative procedures referred to in subparagraph (a) is independent of the official or office issuing the decision and has the competence to maintain, modify or reverse the determination, in accordance with the domestic law of that Party.
14. Further to Article 20.02 (Transparency - Publication), each Party shall promptly publish or otherwise make available, including through electronic means, all its legislation, regulations, judicial decisions and administrative rulings or policies of general application relating to its requirements for imported or exported goods. Each Party shall also make available notices of an administrative nature, such as general agency requirements and entry procedures, hours of operation and contact for information enquiries.
15, Each Party shall, in accordance with its domestic law, treat as strictly confidential all business information obtained pursuant to this Chapter that is by its nature confidential or that is provided on a confidential basis.
Article 5.03. Cooperation
1. The Parties recognize that technical cooperation is fundamental to facilitating compliance with the obligations set forth in this Agreement and for reaching a better degree of trade facilitation.
2. The Parties agree to develop a technical cooperation program on customs-related matters on the basis of mutually decided terms relating to issues such as the scope, timing and cost of cooperative measures. Customs-related matters includes, among other matters:
(a) training;
(b) risk assessment;
(c) prevention and detection of contraband and illegal activities;
(d) implementation of the Customs Valuation Agreement;
(e) audit and verification frameworks;
(f) customs laboratories; and
(g) implementation of the World Customs Organization's Framework of Standards to Secure and Facilitate Global Trade, Pillar 1, Customs-to-Customs level.
3. The Parties shall cooperate:
(a) in the enforcement of their respective customs-related laws or
(b) regulations implementing this Agreement;
to the extent practicable and for purposes of facilitating the flow of trade between them, in such customs-related matters as the collection and exchange of statistics regarding the importation and exportation of goods, the harmonization of documentation used in trade and the standardization of data elements; and
(c) to the extent practicable, to exchange information to assist each other in the tariff classification of imported and exported goods.
Article 5.04. Future Work Program
1. With the objective of developing further steps to facilitate trade under this Agreement, the Parties establish the following work program:
(a) to develop the Cooperation Program referred to in Article 5.03 for the purpose of facilitating compliance with the obligations set forth in this Agreement; and
(b) as appropriate, to identify and submit for the consideration of the Commission new measures aimed at facilitating trade between the Parties, taking as a basis the objectives and principles set forth in Article 5.01 including, among other things:
(i) common processes,
(ii) general measures to facilitate trade,
(iii) official controls,
(iv) transportation,
(v) the promotion and use of standards,
(vi) the use of automated systems and Electronic Data Interchange (EDI),
(vii) the availability of information,
(viii) customs and other official procedures concerning the means of transportation and transportation equipment, including containers,
(ix) official requirements for imported goods,
(x) simplification of the information necessary for the release of goods,
(xi) customs clearance of exports,
(xii) transshipment of goods,
(xiii) goods in international transit,
(xiv) commercial practices, and
(xv) payment procedures.
2. The Parties may periodically review the work program referred to in paragraph 1 to decide on new cooperation actions and new measures that might be needed to promote application of the trade facilitation obligations and principles.
3. The Parties shall review relevant international initiatives on trade facilitation, including the Compendium of Trade Facilitation Recommendations, developed by the United Nations Conference on Trade and Development and the United Nations Economic Commission for Europe, to identify areas where further joint action would facilitate trade between the Parties and promote shared multilateral objectives.
Chapter Six. SANITARY AND PHYTOSANITARY MEASURES
Article 6.01. Relation to other Agreements
The SPS Agreement governs the rights and obligations of the Parties in respect of a sanitary or phytosanitary measure that may, directly or indirectly, affect trade between the Parties. The objective of this Chapter is to enhance the Parties' implementation of the SPS Agreement.
Article 6.02. SPS Issue Avoidance and Resolution
1. The Parties agree to work expeditiously to resolve a specific sanitary or phytosanitary trade-related issue. To that end, the Parties commit to undertake the necessary technical discussions, including an assessment of the scientific basis of the measures at issue.
2. At the request of either Party, the Parties shall meet in a timely manner to resolve a specific sanitary or phytosanitary trade-related matter. Unless the Parties decide otherwise, they shall meet within 45 days of the request, and if travel is required the Party requesting the meeting shall travel to the territory of the other Party.
Article 6.03. SPS Coordinators
1. Each Party shall designate a SPS Coordinator to facilitate communication on sanitary or phytosanitary trade-related matters and shall notify the other Party of its SPS Coordinator through the Coordinators.
2. The functions of the SPS Coordinators include:
(a) communications relating to sanitary and phytosanitary issue avoidance and resolution, including consultations related to the development and application of a sanitary or phytosanitary measure that affects or may affect trade between the Parties;
(b) consultation, as required, in coordination with the Contact Points established under Chapter Nineteen (Trade-Related Cooperation), on technical and institutional co-operation activities to resolve a specific issue related to a sanitary or phytosanitary measure that affects or may affect trade between the Parties;
(c) the promotion of enhanced transparency of sanitary and phytosanitary measures; and
(d) the promotion, as desirable, of bilateral consultations on a sanitary or phytosanitary issue under discussion in a multilateral or international forum such as the WTO Committee on Sanitary and Phytosanitary Measures, the Committees of the Codex Alimentarius Commission, the International Plant Protection Convention (IPPC), the World Organisation for Animal Health (OIE), or other international and regional fora on food safety, human, animal and plant health.
3. In order to facilitate the resolution of a sanitary or phytosanitary trade-related issue or to facilitate the fulfillment of the functions of the SPS Coordinators, the Parties may convene an ad hoc technical working group comprising officials from governmental institutions with responsibility for sanitary and phytosanitary measures on that issue.
4. The Parties agree to carry out their work under this Chapter, to the extent possible, through the use of any technological means available, for example via teleconference or videoconference, and opportunities that may arise at international fora.
5. In the event that the Parties are unable to resolve an issue expeditiously under this Chapter, the SPS Coordinators, upon request of a Party, shall report promptly to the Commission on the matter, in accordance with Article 21.01(2) (Administration of the Agreement - Joint Commission).
Chapter Seven. TECHNICAL BARRIERS TO TRADE
Article 7.01. Definitions
For purposes of this Chapter:
TBT Agreement means the WTO Agreement on Technical Barriers to Trade; and
TBT Committee means the WTO Committee on Technical Barriers to Trade.
Article 7.02. WTO Agreement on Technical Barriers to Trade
The Parties affirm with respect to each other their existing rights and obligations under the TBT Agreement.
Article 7.03. Scope
1. This Chapter applies to the preparation, adoption and application of standards, technical regulations and conformity assessment procedures of national governmental bodies that may affect the trade in goods between the Parties.
2. This Chapter does not apply to:
(a) a purchasing specification prepared by a governmental body for production or consumption requirements of a governmental body; or
(b) a sanitary or phytosanitary measure as defined in Annex A of the SPS Agreement.
Article 7.04. Joint Cooperation
1. The Parties shall strengthen their joint cooperation in the areas of standards, technical regulations, accreditation, conformity assessment procedures and metrology in order to facilitate trade between the Parties.
2. Further to paragraph 1, the Parties shall seek to identify, develop and promote bilateral initiatives regarding standards, technical regulations, accreditation, conformity assessment procedures and metrology that are appropriate for particular issues or sectors.
Such initiatives may include:
(a) regulatory or technical cooperation programs directed at reaching effective and full compliance with the obligations of this Chapter and the TBT Agreement;
(b) initiatives to develop common views on good regulatory practices, such as transparency and the use of equivalency and regulatory impact assessment; and
(c) the use of mechanisms to facilitate the acceptance of the results of conformity assessment procedures conducted in the other Party's territory.
3. A Party shall give positive consideration to a reasonable sector-specific proposal made by the other Party for further cooperation under this Chapter.
Article 7.05. International Standards
1. The Parties shall use relevant international standards, guides and recommendations as a basis for their technical regulations and conformity assessment procedures in accordance with Articles 2.4 and 5.4 of the TBT Agreement.
2. In determining whether an international standard, guide or recommendation exists within the meaning of Articles 2 or 5 or Annex 3 of the TBT Agreement, each Party shall consider the principles set out: in the Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade since 1 January 1995, G/TBT/1/Rev.9, 8 September 2008, Annex B, or a successor document, issued by the TBT Committee.
Article 7.06. Transparency
1. The obligations in this Article supplement those set out in Chapter Twenty (Transparency). In the event of an inconsistency between this Article and the obligations in Chapter Twenty, this Article prevails.
2. Each Party shall ensure that transparency procedures for the development of technical regulations and conformity assessment procedures allow an interested person to participate at an early appropriate stage, when amendments can still be introduced and comments taken into account, except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise. Where a consultation process for the development of technical regulations and conformity assessment procedures is open to the public, each Party shall permit a person of the other Party to participate on terms no less favourable than those accorded to its own persons.
3. Each Party shall recommend to standardization bodies in its territory that they observe paragraph 2 with respect to their consultation processes for the development of a standard or voluntary conformity assessment procedure.
4. Each Party shall allow a period of at least 60 days following its notification to the WTO's Central Registry of Notifications of proposed technical regulations and conformity assessment procedures for the public and the other Party to provide written comments, except where urgent problems arise, or threaten to arise, regarding safety, health, environmental protection or national security.
5. Each Party, at the request of the other Party, shall provide information regarding the objectives of, and rationale for, a technical regulation or conformity assessment procedure that the Party has adopted or is proposing to adopt.
6. Where a Party does not accept a technical regulation of the other Party as equivalent to its own, it shall explain its decision at the request of the other Party. The Parties recognize that it may be necessary to develop common views, methods and procedures to facilitate the use of equivalency.
7. Where a Party does not accept the results of a conformity assessment procedure conducted in the territory the other Party, it shall explain the reasons for its decision at the request of the other Party.
8. The Parties shall ensure that all adopted technical regulations and conformity assessment procedures are available on official websites that are publicly available without charge.
9. If a Party detains a good imported from the territory of the other Party at a port of entry on the basis that the good may not comply with a technical regulation, it shall immediately notify the importer of the reasons for the detention of the good.
Article 7.07. Contact Points
1. The Contact Points designated in Annex 7.07 are responsible for communications related to matters arising under this Chapter. Those communications include:
(a) the implementation and administration of this Chapter;
(b) issues related to the development, adoption or application of standards, technical regulations or conformity assessment procedures under this Chapter or the TBT Agreement;
(c) the exchange of information on standards, technical regulations or conformity assessment procedures; and
(d) joint cooperation by the Parties, pursuant to Article 7.04.
2. A Contact Point is responsible for ensuring communication with the relevant institutions and persons in its territory as necessary to carry out its function. The Contact Points may communicate by electronic mail, video-conferencing or other means on which the Parties decide.
Chapter Eight. EMERGENCY ACTION
Article 8.01. Definitions
For purposes of this Chapter:
Agreement on Safeguards means the WTO Agreement on Safeguards;
competent investigating authority means:
(a) in the case of Canada, the Canadian International Trade Tribunal, or its successor notified to the other Party through diplomatic channels; and
(b) in the case of Panama, the Directorate-General of Trade Defence, or its
successor notified to the other Party through diplomatic channels; domestic industry means, with respect to an imported good, the producers as a whole of the like or directly competitive good operating in the territory of a Party or those whose collective production of the like or directly competitive good constitutes a major proportion of the total domestic production of such good; emergency action means an emergency action described in Article 8.03;