(j) Goods produced in the territory of one or more of the Parties exclusively from goods referred to in subparagraphs (a) to (i) or from their derivatives, at any stage of production;
Generally accepted accounting principles recognized means the consensus on which there are or have a substantial authoritative support in the territory of a party and at any time, with respect to the recording of income, expenditure, assets and liabilities; the disclosure of information and the preparation of financial statements. the principles of general application may cover procedures as well as detailed rules, practices and procedures;
Methods of production means obtaining goods including but not limited to, breeding, rearing, harvest, mining, fishing, hunting, capture, aquaculture, collection, production, manufacture, processing or assembled desensamblado of goods;
Producer means a person who conducts a production process;
Resolution origin means of a written document issued by the customs authority as a result of a procedure which verifies whether qualifies as a good originating under this chapter;
Value means the value of a good or material for the purposes of the implementation of this chapter; and
Transaction value means the price actually paid or payable for a good identified in accordance with the provisions of the Agreement on customs valuation.
Chapter 5. Trade Facilitation
Article 5.1. Publication
1. Each Party shall publish its laws, regulations and administrative procedures customs on the Internet or a comparable computer telecommunications network of its customs authority.
2. Each Party shall, as far as possible, shall publish in advance any regulations of general application in customs matters that it proposes to adopt and provide an opportunity to comment prior to its adoption.
3. Each Party shall designate or maintain one or more enquiry points to address concerns of interested persons on Customs matters and shall make available on the Internet information concerning procedures for making and meet the consultations.
Article 5.2. Release of Goods
1. Each Party shall adopt or maintain simplified customs procedures for the efficient and expeditious clearance of goods.
2. For purposes of paragraph 1, the Parties shall:
(a) In accordance with their customs legislation, allow goods to be released at the point of arrival, without warehouses or temporary transfer to other locations;
(b) To the extent possible, release the goods within forty-eight (48) hours following the arrival of the goods;
(c) Allow importers to withdraw goods from customs before the liquidation and payment of customs duties, taxes and charges which are applicable, without prejudice to the final determination by its customs authority on the same. for this purpose, a Party may require an importer to provide security in the form of a bond, deposit or any other instrument and that appropriate, to the satisfaction of the Customs Authority, cover the final payment of customs duties, taxes and charges in connection with the importation of goods.
3. Without prejudice to paragraphs 1 and 2, the Parties shall adopt or maintain customs procedures that will inform the applicant the rejection of the release of the goods subject to import, when the same does not comply with the requirements and formalities required by the customs laws and regulations of the importing Party. the party that rejects the release of the goods shall indicate the reasons which generate the same.
Article 5.3. Risk Management
Each party shall endeavor to adopt or maintain risk management systems with a view to facilitating and simplification and the procedures for the clearance of goods and low-risk focus their inspection and control on the release of high-risk goods.
Article 5.4. Automation
The Customs Authorities shall work in the adoption of information technology to implement procedures for the expeditious clearance of goods. in the selection of the information technology to be used for that purpose, each Party shall:
(a) Used standards or international standards;
(b) Make electronic systems accessible to users Customs Authority;
(c) Shall provide for the submission and processing of information and data before arrival of the shipment to enable the release of goods on arrival;
(d) Shall employ or electronic automated systems for risk analysis and routing;
(e) Work on the development of electronic systems compatible with those of the customs authority of the other party in order to facilitate the exchange of international trade data between the parties; and
(f) Work to develop a set of common data elements and processes in accordance with the Customs Data Model of the World Customs Organization and related guidelines and recommendations of the World Customs Organization (WCO).
Article 5.5. Paperless Trade Administration
1. Each Party shall make available to the public in electronic form the forms that must be handled by an importer or exporter in relation to the import or export of goods.
2. Each Party shall, as far as possible, shall accept the forms, which must be handled by an importer or exporter or their representatives to be submitted electronically as the legal equivalent of the paper version.
Article 5.6. Customs Cooperation
1. In order to facilitate the effective operation of this agreement each Party shall endeavour to notify the other party of any significant modification of its legislation or regulations on Customs matters affecting the implementation of this Agreement.
2. The Parties shall promote and facilitate cooperation between their respective customs authorities and, in particular, on the simplification of formalities and customs procedures, without prejudice to their powers of control.
3. The Parties shall cooperate in achieving compliance with their respective laws and regulations with respect to:
(a) The implementation and application of the provisions of this Agreement in respect of imports or exports, including the provisions related to trade in goods, release programme, of Origin regime) and this chapter;
(b) The implementation and operation of the Customs Valuation Agreement;
(c) The prohibitions or restrictions on imports or exports; and
(d) Other customs matters as the parties may agree.
4. Where a Party has a reasonable suspicion of unlawful activity related to its laws or regulations on imports and exports, it may request that the other party provide specific confidential information normally collected in the development of the export and import of goods.
5. The application by a Party pursuant to paragraph 4 shall be made in writing and specify the purpose for which the information is required and identify the requested information with sufficient specificity for the other party to locate and provide.
6. The party which requested information shall, in accordance with its law and any relevant international agreement to which they are party; to provide a written response containing such information.
7. For the purposes of paragraph 4, "a reasonable suspicion of unlawful activity" means a suspicion based on relevant factual information obtained from public or private sources, covering one or more of the following circumstances:
(a) Historical evidence of non-compliance with laws or regulations governing imports and exports by an importer or exporter;
(b) Historical evidence of non-compliance with laws or regulations governing imports and exports by a manufacturer, producer, or any other person involved in the movement of goods from the territory of one party to the territory of another party;
(c) Historical evidence that some or all of the persons involved in the movement of goods from the territory of one party to the territory of the other party in a specific sector of goods, not a Party has complied with laws or regulations governing imports and exports; or
(d) Other information that the parties agree is sufficient in the context of a particular request.
8. The requested Party shall endeavour to provide to the applicant party any additional information that would assist in determining whether imports or exports compliance with the laws or regulations governing importations exportations or of the other party, in particular those related to the prevention of unlawful activities such as smuggling and similar offences.
9. In order to facilitate trade between the parties, each party shall endeavor to provide the other party with technical advice and assistance for the purpose of improving the technical evaluation and risk management, expediting and simplifying customs procedures for the timely and efficient clearance of goods, improving technical skills of staff and enhancing the use of technologies that can lead to improved compliance with laws or regulations governing importations of a party.
10. The Parties shall endeavour to cooperate in:
(a) Strengthening the technical capacity of each party in implementing regulations governing their imports and exports;
(b) To achieve the simplification of the requirements and formalities in respect of the release of goods;
(c) Establish and maintain other channels of communication to facilitate the secure and rapid exchange of information;
(d) Mutually assist in the development and adoption of mechanisms to prevent and preventing illegal activities; and
(e) Improving coordination on matters relating to the importation.
11. The Parties shall cooperate for an efficient and expeditious clearance of goods. for this purpose, they shall endeavour to take into account additional elements in its certification as whole chain of foreign trade, in the country of export, international business partnerships
Continue to promote international standards and safe trade in cooperation with Governments and international agencies.
12. The parties agree to conclude a mutual assistance agreement between their customs authorities within three (3) months following the signing of this Agreement.
Article 5.7. Confidentiality
1. Where a Party providing information to the other Party in accordance with this Chapter and the designated as confidential, the party receiving the information shall maintain the confidentiality of the information in accordance with the legislation of that Party. the party providing the information may require the party may require that a written assurance that the information is kept in reserve, which shall be used only for the purposes specified in the request for information from the other party, and it shall not be disclosed without the specific permission of the Party that provided.
2. A party may decline to provide information requested by the other party if the requesting party does not provide the security referred to in paragraph 1.
3. Each Party shall adopt or maintain procedures to ensure that confidential information provided by a party, including the disclosure of information which could prejudice the competitive position of the person providing, shall be protected from unauthorized disclosure in accordance with its domestic legislation.
4. Notwithstanding the above, and for greater certainty, the confidential information collected pursuant to this chapter may be disclosed for law enforcement and judicial authorities responsible for the administration and enforcement of customs and tax matters, where appropriate
Article 5.8. Consignments of Express Delivery
The Parties shall adopt or maintain separate customs procedures and expedited shipments for express delivery while maintaining appropriate systems of control and selection. these procedures shall:
(a) Shall provide the electronic transmission and processing of information necessary for the release of express delivery of a consignment prior to the arrival of the shipment express delivery;
(b) Allow electronic submission of a single manifest covering all goods contained in a shipment transported by an express delivery services;
(c) Shall provide for clearance of certain goods with a minimum of documentation according to the legislation of each party;
(d) Under normal circumstances, provide for the release of express delivery shipments within six (6) hours of customs documents necessary, provided that the shipment has arrived;
Article 5.9. Review and Appeal
Each Party shall respect of its administrative actions relating to customs matters that importers in its territory have access to:
(a) A level of independent administrative review of the employee or office that issued the administrative acts; and
(b) Judicial review of administrative actions.
Article 5.10. Sanctions
The Parties shall adopt or maintain a system for the imposition of civil or administrative sanctions and, where appropriate, penal sanctions for violations of its customs laws, including those governing the customs tariff classification and valuation rules of origin, and requests for preferential tariff treatment under this Agreement.
Article 5.11. Advance Rulings
1. In order to ensure uniform application of customs legislation, provide predictability in customs procedures; eliminate the discretion and provide legal certainty to customs user, the importing Party through its Customs Authority or other competent governmental authority, at the written request of an importer or exporter or producer (1) prior to the importation of a good into its territory, shall deliver a written advance ruling regarding:
(a) Tariff classification;
(b) The application of customs valuation criteria for a particular case, in accordance with the application of the provisions contained in the agreement on customs valuation;
(c) The implementation of returns derogations, waivers of customs duties; or
(d) If a good is originating under chapter 4 (of origin regime); and
(e) Other matters as the parties agree.
2. Each Party shall establish guidelines for the issuance of advance rulings, including:
(a) The obligation of the person providing the information required by the customs authority or other competent governmental authority, to process an application for an advance ruling, where required, including a sample of goods for which an advance ruling is sought;
(b) The obligation of the customs authority or other competent governmental authority to issue an advance ruling within a maximum period of one hundred and twenty (120) days, once all necessary information has been submitted by the applicant; and
(c) The obligation of the customs authority or other competent governmental authority to issue an advance ruling, considering the facts and circumstances presented by the applicant.
3. When an importer requests that the treatment accorded to an imported good should be governed by an advance ruling issued beforehand, the customs authority or other competent governmental authority may evaluate whether the facts and circumstances of the importation are consistent with the facts and circumstances on which the advance ruling was issued.
4. Each Party shall provide that advance rulings will enter into force from the date of its issuance or such other date specified in the ruling provided that the facts or circumstances on which the ruling is based have not changed.
5. The customs authority or other competent governmental authority issuing the advance ruling may modify or revoke after the party notifies the applicant. the Party issuing may modify or revoke an advance ruling retroactively to collect customs duties, taxes and charges which are applicable, lost, whichever was based on incorrect or false information, and shall notify the applicant without delay.
6. Subject to any confidentiality requirements in its legislation, each Party shall make its advance rulings publicly available.
7. If a requester provides false information or omits relevant circumstances or facts relating to the advance ruling or does not act in accordance with the terms and conditions of the resolution, the importing party may apply appropriate measures, including civil, criminal and administrative actions, monetary penalties or other sanctions.
Article 5.12. Committee on Trade Facilitation
1. The parties establish a committee on trade facilitation, comprising representatives of each party, which shall meet at the request of the Commission or one of the Parties.
2. The functions of the Committee shall include:
(a) The Commission to propose the adoption of guidelines customs and practices that facilitate trade between the parties, in line with the evolution of the guidelines of the WCO and the WTO;
(b) The Commission to propose solutions on differences that arise relating to:
(i) The interpretation, implementation and administration of this chapter;
(ii) Matters of tariff classification and customs valuation; and
(iii) The other issues related to practices or procedures adopted by the parties that impede the rapid release of goods.
(c) To ensure the proper application of customs legislation by customs authorities;
(d) The Commission to propose the obstacles or difficulties related to this chapter that arise between the parties;
(e) Uniform Guidelines propose to the Commission, based on international standards for the improvement of customs procedures;
(f) Consider the proposed modification of customs standards in matters pertaining to this chapter that may affect the flow of trade between the parties;
(g) Report to the Commission on the development of its activities;
(h) Provide a report to the Commission, setting out its findings and recommendations, when a request and upon request of a Party proposing the modification of this chapter; and
(i) Any other matter that it considers relevant.
Article 5.13. Implementation
The obligations of Article 5.11.1 (b), shall enter into force three (3) years after the date of Entry into Force of this Agreement.
Chapter 6. Sanitary and Phytosanitary Measures
Article 6.1. Objectives
1. The objective of this chapter is to protect human life and health, animal and plant health; facilitate trade between the parties and strengthen capacities for the implementation of the SPS Agreement.
2. The Parties shall ensure that their sanitary and phytosanitary standards constitute unjustified barriers to trade.
Article 6.2. General Provisions
1. The Parties shall be governed by the provisions of the SPS Agreement and the decisions taken by the Committee on Sanitary and Phytosanitary Measures of the WTO, subject to the adoption and implementation of all sanitary and phytosanitary measures.
2. This chapter shall apply to the definitions in annex A of the SPS Agreement, as well as those set out in the harmonized glossaries of terms of the relevant international organizations: the OIE and IPPC and the Codex Alimentarius.
3. Standards of animal health and food safety referred to in this chapter also refer relating to the biological resources, including products and by-products.
Article 6.3. Rights and Obligations
1. The Parties confirm their rights and obligations under the SPS Agreement. in addition, as the parties shall be governed by the provisions of this chapter.
2. The parties agree to work together in the effective implementation of the SPS Agreement and of the provisions in this chapter, for the purpose of facilitating bilateral trade.
3. The parties, through mutual cooperation, shall endeavour to ensure food safety, to prevent the entry into and spread of pests or diseases and to improve plant and animal health and animal health.
Article 6.4. Harmonization
Developing as set out in article 3 of the SPS Agreement and its supplementary decisions, the Parties shall agree on procedures for the harmonization of sanitary and phytosanitary measures, particularly where there are differences in the adoption of standards and recommended by the relevant international organizations.
Article 6.5. Equivalence
1. Pursuant to the provisions of article 4 of the SPS Agreement and its supplementary decisions, the Parties may request the evaluation of sanitary and phytosanitary measures and systems and structures sanitary and phytosanitary, for the purpose of holding equivalence agreements.
2. Equivalence may be recognised in connection with an individual measure, a group of measures and / or systems applicable to a product or group of products.
3. The Parties shall agree on a procedure for the process of recognition of equivalence and will work to establish such a procedure within a period of six (6) months from the date of Entry into Force of the Agreement, which shall be completed within a mutually agreed by the parties.
Article 6.6. Risk Assessment and Appropriate Level of Protection
1. In article 5 of the SPS Agreement and its supplementary decisions, where there is a need to undertake an assessment of risk of a product or group of products, the importing Party shall take into account international standards or where no and be of interest to the parties may agree on a procedure for this purpose.
2. Any updating of an assessment of risk in situations where there is a significant fluid and regulate trade in goods between the parties shall not be a reason to disrupt the trade of products in question, except in the case of a sanitary or phytosanitary emergency.
3. In the absence of the risk analysis of the importing Party, the exporting party may send scientific evidence, including proposals for mitigation, to support the process of risk analysis of the importing Party. such information shall be considered in the framework of the procedures of the importing Party and consistently with article 5 of the SPS Agreement. having received the documentation, the importing Party shall initiate the risk analysis.
Article 6.7. Recognition of Free Zones and Low Pest or Disease Prevalence Zones
1. The surveys bilateral free areas of low disease or pest prevalence shall be based on international standards of the OIE and IPPC.
2. In accordance with article 6 of the SPS Agreement, the parties shall expeditiously disease-free areas and areas of low disease or pest prevalence recognized by the relevant international organizations.
3. Where there is recognition of a free zone or area of low prevalence by the relevant international organizations, the parties agree to develop a procedure for the recognition of the bilateral free areas and areas of low or pest disease prevalence, taking into account existing international standards.
4. For those areas that have recognition of free or low prevalence of pests or diseases, in the event of the occurrence of outbreaks, to recover recognised health status, the recognition procedure shall be expedited, along the lines of the relevant international organizations.
5. The Parties shall agree on the procedures referred to in the preceding paragraphs and will work to establish such procedures within a period of six (6) months from the date of Entry into Force of the Agreement, which shall be completed within a mutually agreed by the parties.
Article 6.8. Control Procedures, Inspection, Certification and Adoption
1. The procedures of control, inspection, certification and approval in sanitary and phytosanitary matters shall be harmonized with international standards of the OIE and IPPC and the Codex Alimentarius.
2. Pursuant to the provisions of Article 8 and Annex C of the SPS Agreement and its supplementary decisions, the Parties shall establish a procedure for claims related to the application of the procedures of control, inspection, certification and approval. the Parties shall commence work to establish such a procedure within a period of six (6) months from the date of Entry into Force of the Agreement, which shall be completed within a mutually agreed by the parties.
Article 6.9. Conventions between Competent Authorities
1. For the purpose of facilitating the implementation of the SPS Agreement and of this chapter, the competent authorities in sanitary and phytosanitary matters the Parties may conclude agreements for cooperation and coordination for the exchange of goods without presenting a health risk for both countries.
2. Such agreements may deepen and / or establish mechanisms and instruments necessary to ensure transparency and fluidity, deadlines for assessment procedures for recognition of equivalence, disease-free or areas of low prevalence, disease or pest control, inspection, certification and approval, among others, and in all cases shall be consistent with the provisions of this chapter.
Article 6.10. Committee on Sanitary and Phytosanitary Measures
1. The parties establish a Committee on Sanitary and Phytosanitary Measures, with the aim of addressing issues relating to the implementation of this chapter.
2. The Committee shall be composed of representatives of the competent authorities in sanitary and phytosanitary matters and trade, identified in annex 6.10
3. The Committee shall meet at least once a year, through face-to-face an audio, video or email or through other means to ensure an adequate level of operation.
4. At its first meeting the Committee shall establish its rules of procedure and programme of work, which shall be updated on matters of interest proposed by the parties.
5. The functions of the Committee shall be: