Title
Free Trade Agreement Chile-Colombia
which constitutes an additional protocol to the ACE 24
Preamble
The Government of the Republic of Colombia (Colombia) and the Government of the Republic of Chile (Chile), hereinafter referred to as the parties; whereas:
The will to strengthen the special bonds of friendship, solidarity and cooperation between their peoples;
The development of their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization and the Montevideo Treaty 1980, as well as other bilateral and multilateral instruments of cooperation and integration to which they are party;
The need to strengthen the integration process in Latin America, in order to achieve the objectives set out in the Montevideo Treaty 1980, through the conclusion of bilateral and multilateral agreements the widest possible;
The active participation of the Parties in the Latin American Integration Association (ALADI);
The progress made in the economic integration between the parties arising from the economic complementarity agreement for the establishment of an expanded area between Colombia and Chile (no agreement 24);
The importance of working together towards greater integration with the Asia-Pacific region;
Colombia's participation in the Cartagena Agreement and commitments resulting therefrom for this country;
The advantages of giving operators clear and predictable rules for the development of trade in goods and services as well as for the promotion and protection of investments;
The importance for the economic development of the Parties and improving their competitiveness, adequate international cooperation;
The desirability of achieving a more active participation of economic operators of the Parties in efforts to increase the mutual exchange;
The importance of creating new and better employment opportunities and improve working conditions, in pursuit of ensuring "decent work" for their workers and increasing capacity building in human resources development and social capital;
The commitment to achieving sustainable development and recognizing that its interdependent and mutually reinforcing pillars mutuamente-crecimiento economic, social development and environmental protection;
That trade and environmental policies are mutually supportive in achieving sustainable development;
The importance of cooperation in preventing and combating corrupt practices which may arise in relation to the development of this Agreement.
Agree to conclude the following agreement,
Body
Article 1. Initial Provisions
Article 1.1. Establishment of a Free Trade Area
The parties in accordance with Article XXIV of the General Agreement on Tariffs and Trade 1994 and article V of the General Agreement on Trade in Services, and eltratado 1980 Montevideo, establish a free trade area.
Article 1.2. Objectives
1. The objectives of this Agreement are:
(a) Promote under conditions of equity, balanced and harmonious development of the Parties;
(b) Encourage expansion and diversification of trade between the parties;
(c) Eliminate barriers to trade and facilitate the cross-border movement of goods and services between the parties;
(d) Substantially increase investment opportunities in the territories of the Parties;
(e) Establish guidelines for further cooperation between the parties, as well as at the regional and multilateral cooperation to expand and enhance the benefits of this Agreement;
(f) Create effective procedures for the implementation and application of this Agreement, for its joint administration and to prevent and resolve disputes;
(g) Promoting cooperation among the parties to obtain the broadest advantage of opportunities for growth and development provided by this Agreement, with particular emphasis on competitiveness and innovation;
(h) Contribute to the efforts of the Parties to ensure that trade and environmental policies are mutually supportive and cooperate in the promotion of
The best ways of sustainable utilisation of natural resources and the protection of ecosystems; and
(i) To promote the development of employment policies and practices that improve working conditions and living standards, in the territory of each party;
2. The Parties shall interpret and apply the provisions of this Agreement in the light of the objectives set out in paragraph 1 and in accordance with applicable rules of international law.
Article 2. General Definitions
Article 2.1. Definitions of General Application
For the purposes of this Agreement and, unless otherwise specified:
ACE 24 means the Economic Complementation Agreement for the Establishment of an Expanded Space between Colombia and Chile (Agreement Nº 24), signed in Santiago, Chile, on 6 December 1993;
Anti-dumping Agreement means the Agreement on Implementation of article VI of the General Agreement on Tariffs and Trade 1994, which is part of the WTO agreement;
Customs valuation agreement means the Agreement on Implementation of article VII of the General Agreement on Tariffs and Trade 1994, which is part of the WTO agreement;
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, dated 15 April 1994;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, which is part of the WTO agreement;
TBT Agreement means the Agreement on Technical Barriers to Trade, which is part of the WTO agreement;
Agreement on subsidies means the Agreement on Subsidies and Countervailing Measures, which is part of the WTO agreement;
GATS means the General Agreement on Trade in Services, which is part of the WTO agreement;
A customs duty includes any duty or tariff on imports and any charge of any kind imposed in connection with the importation of goods including any form of a surtax or surcharge in connection with such importation but does not include any:
(a) Charge equivalent to an internal tax established in accordance with Article III.2 of GATT 1994 with respect to similar goods directly
Surrogate competitors, or of the party or in respect of goods from which has been manufactured or produced in whole or in part the imported goods;
(b) Anti-dumping or countervailing duty; or
(c) Duty or other charge in connection with importation commensurate with the cost of services rendered;
Customs authority means the authority that according to the legislation of each party is responsible for the administration and enforcement of customs laws and regulations.
(a) In the case of Chile, the National Customs Service; and
(b) In the case of Colombia, the Bureau of National Taxes and Customs.
Commission means the Free Trade Commission established in article 15.1.1 (Free Trade Commission);
Government procurement means the process by which a Government obtains the use of goods or acquires or services. or any combination thereof, for governmental purposes and not with a view to commercial sale or resale or with a view to use in the production or supply of goods or services for commercial resale or sale;
Calendar days means calendar days, or schedule;
Enterprise means any entity constituted or organized under the applicable law, whether or not for profit and whether private or government owned, society, including any Trust Company, participation, sole proprietorship, co-investment joint venture or other association;
Enterprise of a party constituted means an enterprise or organized under the law of a party;
State enterprise means an enterprise that is owned by a party or under the control of the same through ownership rights;
Existing means in effect on the date of Entry into Force of this Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, which is part of the WTO agreement;
Levy customs tariff means;
Measure means any law, regulation, rules of procedure, requirement or practice;
Goods originating means goods or products that comply with the rules of origin (set out in chapter 4 of Origin regime);
National means a natural person who has the nationality of a Party in accordance with its Constitution or a permanent resident of a party;
WTO World Trade Organization; the means signatory party means;
Heading means the first four digits in the tariff classification number under the Harmonized System;
Person means a natural person or an enterprise;
Party means a person of a national or an enterprise of a party;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System of goods, including its general rules of interpretation
Section notes and chapter notes, in the form in which the parties have adopted and implemented in their respective tariff laws;
Subheading means the first six digits in the tariff classification number under the Harmonized System;
For a party territory means the territory of that Party as set out in annex 2.1; and
Preferential tariff treatment means the duty applicable to goods originating in accordance with this Agreement.
Annex 2.1 . Country-specific definition
For the purposes of this Agreement, unless otherwise specified; territory means:
(a) For Chile, the Land, Sea and Air Space under its sovereignty and the exclusive economic zone and the continental shelf over which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law; and
(b) With regard to Colombia, in addition to the mainland, the Archipelago of San Andrés, Providencia and Santa Catalina, Malpelo Island and all the other islands, islets and cays, Saliba and banks belonging to it, as well as airspace and maritime areas over which it has sovereignty or sovereign rights or jurisdiction in accordance with its domestic law and international law, including applicable international treaties.
Article 3. Trade In Goods
Article 3.1. National Treatment
Each Party shall accord to the National Treatment goods of the other Party in accordance with article III of the GATT 1994, including its interpretative notes and to this end the
Article 3.2. Export Taxes
Except as provided in annex 3.2, no Party may adopt or maintain any other tariff, tax or charge on the export of any goods to the territory of the other party unless such tariff imposed or charge is adopted or maintained on any goods for domestic consumption.
Article 3.3. Administrative Fees and Formalities
1. Each Party shall ensure, in accordance with paragraph 1 of Article VIII of the GATT 1994 and its interpretative notes that all fees and charges of whatever character (other than Customs duties, charges equivalent to an internal tax or other national charge applied in accordance with paragraph 2 of article III of the GATT 1994 and the anti-dumping and countervailing duties) imposed on the importation or exportation or under the same, are limited to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. The parties may not require consular transactions, including related fees and charges in connection with the importation of any goods of the other party.
3. Each Party shall make available through the Internet or a comparable computer telecommunications network a current list of the fees and charges in connection with importation or exportation.
Article 3.4. Restrictions on Imports and Exports
1. Except as otherwise provided in this Agreement, no Party may adopt or maintain any prohibition or restriction on the importation of any goods of the other party or on the exportation for sale or export of any good destined for the territory of the other party, except as provided in article XI of the GATT 1994, including its interpretative notes. To this end, article XI of GATT 1994 and its interpretative notes are incorporated into this Agreement and form an integral part thereof, mutatis mutandis.
2. The parties understand that the rights and obligations incorporated GATT 1994 by paragraph 1 prohibited under any circumstances in which any other form of restriction is prohibited, that adopts or maintains a party:
(a) Requirements on export and import prices, except as permitted in enforcement of orders and anti-dumping and countervailing duties;
(b) Import licensing with the status of a performance requirement; or
(c) No voluntary export restraints inconsistent with article VI of the GATT 1994, as implemented under article 18 of the Agreement on Subsidies and paragraph 1 of Article 8 of the Anti-Dumping Agreement.
Article 3.5. Agricultural Export Subsidies
1. The parties share the objective of the multilateral elimination of export subsidies for agricultural goods and shall work together to achieve an agreement in the WTO to eliminate such export subsidies and prevent their reintroduction in any form.
2. Neither Party shall introduce or maintain any export subsidy on any good agricultural destined for the Territory of the other party.
3. For the purposes of this article, export subsidies shall have the meaning assigned to that term in article 1 (e) of the Agreement on Agriculture, which is part of the WTO Agreement, including any amendment of that article.
Article 3.6. Committee on Trade In Goods
1. The parties establish a committee on trade in goods, comprising representatives of each party.
2. The Committee shall meet at the request of any party or the Commission to consider any matter covered under this chapter and the scheme.
3. The functions of the Committee shall include:
(a) Promoting trade in goods between the parties including through consultations on accelerating tariff elimination under this Agreement and other issues as appropriate; and
(b) Consider obstacles to trade in goods between the parties, in particular those related to the application of non-tariff measures and, if necessary, submit such matters to the Commission for its consideration.
Chapter 4. Regime of Origin
Section A. Rules of Origin
Article 4.1. Originating Goods
Except as otherwise provided in this Chapter, shall be considered goods originating if:
(a) The good is wholly obtained or produced entirely in the territory of either Party as defined in article 4.26;
(b) The good is produced in the territory of one or both parties exclusively from materials that qualify as originating in accordance with the provisions of this chapter; or
(c) The good is produced in the territory of one or both parties using non-originating materials that conform to a change in tariff classification, a regional value content or other requirements as specified in annex 4.1. and the good complies with the other applicable provisions of this chapter.
Article 4.2.
1. The regional value content of the goods shall be calculated according to the following formula:
RVC = [(TV-VNM)/VNM] * 100
Where:
RVC is the regional value content, expressed as a percentage;
TV is the transaction value of the good adjusted on a FOB basis, except as provided in paragraph 2. in the event that there is no value or cannot be determined according to the principles of article 1 of the Customs Valuation Agreement; the same shall be calculated in accordance with this Agreement; and
VNM is the transaction value of non-originating materials adjusted on a CIF basis, except as provided in paragraph 4. in the event that there is no value or cannot be determined according to the principles of article 1 of the Customs Valuation Agreement; the same shall be calculated in accordance with this Agreement.
2. Where a good is exported directly by the producer, the value shall be adjusted to the point at which the buyer receives the good within the territory of the Party where the producer is located.
3. All records of costs considered for the calculation of regional value content shall be recorded and maintained in accordance with generally accepted accounting principles applicable in the territory of the Party where the good is produced.
4. When the producer of a good acquires a non-originating material in the territory of a party is located, where the value of the non-originating material shall not include freight and insurance costs, packing and all other costs incurred in transporting the material from the warehouse of the supplier to the place where the producer is located.
5. For purposes of calculating the regional value content of the value of the non-originating materials used by the producer in the production of a good shall not include the value of non-originating materials used by:
(a) Another producer in the production of an originating material that is acquired and used by the producer of the good in the production of that good; or
(b) The producer of the good in the production of an originating material of his own manufacture.
Article 4.3. Non-Originating Transactions
Do not confer origin, individually or in combination with each other, the following operations or processes:
(a) Preservation of goods in good condition during transport and storage (ventilation, aeration, refrigeration, such as freezing;
(b) Facilitating shipment or transportation;
(c) Packaging and packing or packaging of goods for retail sale;
(d) Filtering or dilution in water or in another solvent which does not alter the characteristics of the goods;
(e) Split into lots and / or quantities;
(f) Affixing labels and marks, like other distinguishing signs on their packaging or goods; or
(g) Disassembly of goods in the parties.
Article 4.4. Cumulation
Originating materials or goods originating in either party incorporated in the production of goods in the territory of the other party shall be considered as originating in the territory of the latter party.
Article 4.5. De Minimis
1. A good originating shall be considered if the value of all the non-originating materials used in the production of the good that do not comply with the requirement of a change in tariff classification set out in annex 4.1 (specific rules of origin) does not exceed ten percent (10%) of the transaction value of the good determined in accordance with article 4 (2), and the good complies with the other applicable provisions of this chapter.
2. In the case of goods classified in Chapters 50 to 63 of the Harmonized System, the percentage indicated in paragraph 1 shall relate to the weight of fibers yarns or with respect to the weight of the goods produced.
3. Paragraph 1 does not apply to a non-originating material used in the production of goods covered in chapters 1 to 24 of the Harmonized System unless the non-originating material is included in a different subheading than the good for which the origin is being determined under this article.
4. Paragraph 1 does not apply to a non-originating material classified under chapter 15 of the harmonized system that is used in the production of a good classified under heading 15.01 through 15.15.
Article 4.6. Goods and Fungible Materials
1. Where originating and non-originating fungible goods are physically combined or mixed inventory in the origin of these goods may be determined on the basis of the physical segregation of fungible or each good material, or through the use of any inventory management method, such as, the averages, last entries - First Out (UEPs) or former entrances - First Out (FIFO), recognised in the accounting principles
Generally accepted by the Party in which the production is performed or otherwise accepted by the Party in which the production is performed.
2. The inventory management method selected under paragraph 1 for a particular good or fungible material shall continue to be used for those fungible goods or materials throughout the fiscal year of the person that the method selected inventory management.
Article 4.7. Sets or Assortments
1. A set or assortment of goods that are classified pursuant to rule 3 of the general rules for the interpretation of the Harmonized System. as well as goods whose description according to the nomenclature of the Harmonized System is specifically that of a set or assortment, calificarán as originating, provided that each of the goods in the set or assortment complies with the established rules of origin in this chapter and in annex 4.1 (specific rules of origin).
2. Notwithstanding paragraph 1. a set or assortment of goods originating shall be considered if the value of all non-originating goods used in the training of the Set assortment or does not exceed fifteen per cent (15%) of the transaction value of the good as determined under Article 4.2.