Article 3.11. Agricultural Export Subsidies
1. The Parties share the objective of the multilateral elimination of all forms of export subsidies for agricultural goods and shall cooperate in an effort to achieve such an agreement and prevent their reintroduction in any form.
2. Notwithstanding any other provisions of this Agreement, the Parties agree to eliminate, as of the date of entry into force of this Agreement, all forms of export subsidy for agricultural goods destined for the other Parties, and to prevent the reintroduction of such subsidies in any form.
Article 3.12 . Price Band System
1. Chile may maintain its Price Band System as established in Article 12 of Law 18.525 and its subsequent legal modifications or succeeding system, for the products covered by that law. (2)
2. With respect to the products referred to in Paragraph 1, Chile shall give to the other Parties a treatment not less favourable than the preferential tariff treatment given to any third country, including countries with which Chile has concluded or will conclude in the future an agreement notified under Article XXIV of GATT 1994.
Article 3.13. Special Agricultural Safeguard Measures
1. Chile may apply a special safeguard measure to a limited number of specified sensitive agricultural goods listed in Annex 3.B.
2. Chile shall endeavour to apply special safeguard measures in a manner that is consistent with its commitments under this Agreement to liberalise and promote the expansion of trade in these goods among the Parties.
3 Chile may impose a special safeguard measure on a good only during the period, following the grace period specified in Chile’s Schedule as set out in Annex I, in which tariffs are being eliminated. Chile may not impose a special safeguard measure on a good after that good achieves duty-free status under this Agreement.
4. Notwithstanding Article 3.4, Chile may impose a special safeguard measure in the form of additional import duties as set out below on those goods listed in Annex 3.B. The sum of any such additional duty and any import duties or other charges applied pursuant to Article 3.4 shall not exceed the lesser of:
(a) the prevailing most-favoured-nation applied rate; or
(b) the base rate.
5. Chile may impose a special safeguard measure if the quantity of imports of the good during any semester exceeds the quantity trigger level, corresponding to that specific semester, for those goods listed in Annex 3.B.
6. Chile may maintain a special safeguard measure, under Paragraph 5, only until the end of the semester in which Chile applies the measure.
7. Supplies of the good in question which were en route on the basis of a contract settled before the additional customs duty is imposed under the terms of this Article shall be exempted from any such additional customs duty, provided that they may be counted in the volume of imports of the good in question during the following semester for the purposes of triggering the provisions of Paragraph 5 in that semester.
8. Chile may not apply, with respect to the same good, a special safeguard measure and at the same time apply or maintain a measure under Article XIX of GATT 1994 and the Safeguards Agreement.
9. Chile shall apply any special safeguard measure in a transparent manner. Chile shall ensure that the current volume of imports is published in a manner which is readily accessible to the other Parties, and shall give notice in writing, including relevant data, to the other Parties as far in advance as may be practicable and in any event within 10 working days of the implementation of such action. If Chile decides not to apply a special safeguard measure where the specified trigger volume has been or is about to be met, it shall notify the other Parties promptly of its decision.
10. Upon request of a Party, Chile shall consult promptly and cooperate in exchanging information, as appropriate, with respect to the conditions for applying a special safeguard measure.
11. The Committee on Trade in Goods may review the implementation and operation of this Article.
12. For purposes of this Article, special safeguard measure means a special safeguard measure described in Paragraph 4 and base rate means the rate of customs duty for an imported good as indicated in the Schedule of the importing Party as set out in Annex I.
Article 3.14. Committee on Trade In Goods
1. The Parties may establish a Committee on Trade in Goods that may meet on the request of any Party or the Commission to consider any matter arising under this Chapter and Chapter 4 (Rules of Origin).
2. The Committee’s functions shall include:
- (a) reviewing the implementation of the Chapters referred to above; and
- (b) identification and recommendation of measures to promote and facilitate improved market access, including addressing barriers to trade in goods among the Parties, and to accelerate the tariff elimination under this Agreement
Annex 3.A . Import and Export Measures Measures of Chile
Article 3.8 shall not apply to measures of Chile relating to imports of used vehicles.
Annex 3.B . Special Safeguard Measures
For purposes of Article 3.13, goods originating in Brunei Darussalam, New Zealand or Singapore that may be subject to a special safeguard measure and the trigger levels for each such good are set out below:
Notes:
- The quantities set out above for baskets correspond to each semester. The semesters run from January 1 to June 30 and July 1 to December 31 for each year.
- Each basket will have an annual growth rate of 8 percent which will be calculated at the end of each calendar year.
- In the first calendar year following entry into force of the Agreement, the 8 percent annual growth rate will apply to that calendar year and each calendar year thereafter.
Chapter 4 . RULES OF ORIGIN
Article 4.1 . Definitions
For the purposes of this Chapter:
aquaculture means the farming of aquatic organisms including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding, or protection from predators;
CIF means the value of the good imported and includes the cost of insurance and freight up to the port or place of entry in the country of importation. The valuation shall be made in accordance with the Customs Valuation Agreement;
FOB means the value of the good free on board, independent of the means of transportation, at the port or site of final shipment abroad. The valuation shall be made in accordance with the Customs Valuation Agreement;
goods wholly obtained or produced entirely in a Party means:
(a) mineral goods extracted from the soil or seabed in the territory of a Party;
(b) agricultural and plant products grown and harvested, picked or gathered in the territory of a Party;
(c) live animals, born and raised in the territory of a Party;
(d) goods obtained from live animals in the territory of a Party;
(e) goods obtained from hunting, trapping, fishing, farming, gathering, capturing or aquaculture in the territory of a Party;
(f) goods (fish, shellfish, plant and other marine life) taken within the territorial sea or the relevant maritime zone of a Party seaward of the territorial sea under that Party's applicable law in accordance with the provisions of the United Nations Convention on the Law of the Sea 1982 by a vessel flying, or entitled to fly, the flag of that Party, or taken from the high seas by a vessel registered or recorded with that Party and flying its flag;
(g) goods obtained or produced on board a factory ship registered or recorded with that Party and flying its flag, exclusively from products referred to in Subparagraph (f);
(h) waste and scrap derived from production in the territory of a Party or used articles or goods collected in the territory of a Party, provided that such goods are fit only for the recovery of raw materials;
(i) goods taken by a Party, or a person of a Party, from the seabed or subsoil beneath the territorial sea or the continental shelf of that Party, in accordance with the provision of the United Nations Convention on the Law of the Sea 1982;
(j) recovered goods derived in the territory of a Party from used goods and utilised in the territory of the Party in the production of remanufactured goods; and
(k) goods produced entirely in the territory of a Party exclusively from goods referred to in Subparagraphs (a) to (j) or from their derivatives, at any stage of production;
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Indirect material means a good used in the production, testing or inspection of another good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, including:
(a) fuel, energy, catalysts and solvents;
(b) equipment, devices, and supplies used for testing or inspecting the goods;
(c) gloves, glasses, footwear, clothing, safety equipment and supplies;
(d) tools, dies and moulds;
(e) spare parts and materials used in the maintenance of equipment and buildings;
(f) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; and
(g) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.
material means a good or any matter or substance that is used or consumed in the production of goods or transformation of another good;
minimal operations or processes means operations or processes which contribute minimally to the essential characteristics of the goods and which by themselves, or in combination, do not confer origin;
packing materials and containers for shipment means goods used to protect a good during its transportation, other than containers and packaging materials used for retail sale;
production means methods of obtaining goods including, but not limited to growing, raising, mining, harvesting, fishing, farming, trapping, hunting, capturing, aquaculture, gathering, collecting, breeding, extracting, manufacturing, processing, assembling or disassembling a good;
recovered goods means materials in the form of individual parts that result from:
(a) the complete disassembly of used goods into individual parts; and
(b) the cleaning, inspecting, or testing or other processing of those parts, and as necessary for improvement to sound working condition one or more of the following processes: welding, flame spraying, surface machining, knurling, plating, sleeving and rewinding in order for such parts to be assembled with other parts, including other recovered parts in the production of a remanufactured good as listed in Annex 4.A;
remanufactured goods means an industrial good assembled in the territory of a Party as listed in Annex 4.A, that:
(a) is entirely or partially composed of recovered goods;
(b) has the same life expectancy and meets the same performance standards as a new good; and
(c) enjoys the same factory warranty as such a new good；
transaction value means the price paid or payable for a good as determined by the provisions of the Customs Valuation Agreement;
used means used or consumed in the production of goods;
value means the value of a good or material, pursuant to the provisions of the Customs Valuation Agreement.
Article 4.2 . Originating Goods
Unless otherwise indicated in this Chapter, a good shall be considered as originating in a Party when:
(a) the good is wholly obtained or produced entirely in the territory of one Party, pursuant to the definition in Article 4.1;
(b) the good is produced entirely in the territory of one or more Parties, exclusively from materials whose origin conforms to the provisions of this Chapter; or
(c) the good is produced in the territory of one or more Parties, using non- originating materials that conform to a change in tariff classification, a regional value content, or other requirements specified in Annex II, and the good meets the other applicable provisions of this Chapter.
Article 4.3 . Regional Value Content
1. Where Annex II refers to a regional value content, each Party shall provide that the regional value content of a good shall be calculated on the basis of the following method:
RVC = TV - VNM
--------------- x 100
TV
where:
RVC is the is the regional value content expressed as a percentage;
TV is the transaction value of the good, adjusted on an FOB basis, except as provided in Paragraph 3. If no such value exists or cannot be determined, pursuant to the principles of Article 1 of the Customs Valuation Agreement, it shall be calculated pursuant to the principles of Articles 2 to 7 of that Agreement; and
VNM is the transaction value of the non-originating materials, when they were first acquired or supplied to the producer of the goods, adjusted on a CIF basis, except as provided in Paragraph 4. If such value does not exist or cannot be determined, pursuant to the principles of Article 1 of the Customs Valuation Agreement, it shall be calculated pursuant to that Agreement.
2. The value of the non-originating materials used by the producer in the production of a good shall not include, for purposes of calculating the regional value content, pursuant to Paragraph 1, the value of non-originating materials used to produce the originating materials subsequently used in the production of the good.
3. When the producer of a good does not export it directly, the value shall be adjusted up to the point at which the purchaser receives the good within the territory of a Party where the producer is located.
4. When the producer of the good acquires a non-originating material in the territory of the Party where it is located, the value of such material shall not include freight, insurance, packing costs and any other costs incurred in transporting the material from the supplier's warehouse to the producer's location.
Article 4.4 . Operations That Do Not Confer Origin
The minimal operations or processes that do not confer origin, include the following:
(a) operations to ensure the preservation of products in good condition during transport and storage (such as drying, freezing, ventilation, chilling and like operations);
(b) simple operations consisting of sifting, classifying, washing, cutting, slitting, bending, coiling, or uncoiling;
(c) changes of packing and breaking up and assembly of consignments;
(d) packing, unpacking or repacking operations;
(e) affixing of marks, labels or other like distinguishing signs on products or their packaging; and
(f) mere dilution with water or another substance that does not materially alter the characteristics of the goods.
Article 4.5 . Accumulation
Originating goods or materials of any of the Parties used in the production of goods in the territory of another Party shall be considered to originate in the territory of the latter Party.
Article 4.6 . De Minimis
A good that does not conform to a change in tariff classification, pursuant to the provisions of Annex II, shall be considered to be originating if the value of all non-originating materials used in its production not meeting the change in tariff classification requirement does not exceed 10 percent of the transaction value of the given good pursuant to Article 4.3, and the good meets all the other applicable criteria of this Chapter.
Article 4.7 . Accessories, Spare Parts, and Tools
1. Normal accessories, spare parts, or tools provided with the good as part of the standard accessories, spare parts, or tools shall be regarded as originating goods and shall be disregarded in determining whether or not all the non- originating materials used in the production of the originating goods undergo the applicable change in tariff classification, provided that:
(a) the accessories, spare parts, or tools are classified with and not invoiced separately from the good; and
(b) the quantities and the value of those accessories, spare parts, or tools are the normal ones for the good.
2. If the goods are subject to a regional value content requirement, the value of the accessories, spare parts, or tools shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the goods.
Article 4.8. Packaging Materials and Containers for Retail Sale
Packaging materials and containers in which goods are packaged for retail sale, if classified with the goods, shall be disregarded in determining whether all the non-originating materials used in the production of those goods have undergone the applicable change in tariff classification set out in Annex II. However, if the goods are subject to a regional value content requirement the value of the packaging used for retail sale will be counted as originating or non- originating, as the case may be, in calculating the regional value content of the goods.
Article 4.9. Packing Materials and Containers for Shipment
Packing materials and containers in which a good is packed exclusively for transport shall not be taken into account for purposes of establishing whether the good is originating.
Article 4.10 . Indirect Materials
Indirect materials shall be considered to be originating materials without regard to where they are produced and its value shall be the cost registered in the accounting records of the producer of the good.
Article 4.11 . Transit Through Non-Parties
1. Preferential tariff treatment provided for in this Agreement shall be applied to goods that satisfy the requirements of this Chapter and which are directly transported among the Parties.
2. Notwithstanding Paragraph 1, goods shall be authorised to transit through non-Party countries, and to remain stored for a reasonable period of time, which in no case shall be more than 6 months from the date of entry of the goods into the third non-Party country.
3. Goods shall be eligible for preferential tariff treatment in accordance with this Agreement if they are transported through the territory of one or more non- Parties, provided that the goods:
(a) did not undergo operations other than unloading, reloading, or any other operation necessary to preserve them in good condition; and
(b) did not enter the commerce of such non-Parties after the shipment from the Party and before the importation into another Party.
4. Compliance with the provisions set out in Paragraphs 2 and 3 shall be proved by means of supplying to the customs authorities of the importing Party either customs documents of the third country or documents of the competent authorities, including commercial shipping or freight documents.
Article 4.12. Outward Processing
1. Notwithstanding the relevant provisions of Article 4.2 and the product- specific requirements set out in Annex II, a good listed in Annex 4.B shall be considered as originating even if it has undergone processes of production or operation outside the territory of a Party on a material exported from the Party and subsequently re-imported to the Party, provided that:
(a) the total value of non-originating materials as set out in Paragraph 2 does not exceed 55 percent of the customs value of the final good for which originating status is claimed;
(b) the materials exported from a Party shall have been wholly obtained or produced in the Party or have undergone therein, processes of production or operation going beyond the minimal processes or operations in Article 4.4, prior to being exported outside the territory of the Party;
(c) the producer of the exported material is the same producer of the final good for which originating status is claimed;
(d) the re-imported good has been obtained through processes of production or operation of the exported material; and
(e) the last process of manufacture of the good was performed in the territory of the Party, and this process is the last activity undertaken in respect to a good that finally transforms it into a good different from its component parts or materials and a new good is therefore manufactured.
2. For the purposes of Paragraph 1(a), the total value of non-originating materials shall be the value of any non-originating materials added in a Party as well as the value of any materials added and all other costs accumulated outside the territory of the Party, including transportation costs.
3. For greater certainty, the verification procedures referred to in Article 4.16 shall apply in order to ensure the proper application of this Article. Such procedures include the provision of information and supporting documentation, including that relating to the export of originating materials and the subsequent re- import of the goods subsequently exported as originating goods, by the exporting customs administration or exporter upon receipt of a written request from the customs administration of the importing Party through the customs administration of the exporting Party.
4. Upon the request of a Party, the list of products in Annex 4.B may be modified by the Commission.
Article 4.13. Treatment of Goods for Which Preference Is Claimed
1. A Party can accept either; a declaration as to origin on the export invoice (declaration), or a certificate of origin, in respect of a good imported from any other Party for which an importer claims preferential tariff treatment.
2. An exporter or producer may elect to use either a declaration as to origin on the export invoice or a certificate of origin, either of which may then be used by the importer as evidence of origin in respect to goods for which preferential tariff treatment is claimed.
3. The declaration or certificate of origin shall be completed by the exporter or producer, as the case may be. The declaration or certificate of origin shall:
(a) specify that the goods enumerated thereon are the origin of the exporting Party and meet the terms of this Chapter;
(b) be made in respect of one or more goods; and which can include a variety of goods; and
(c) be completed in English.
4. respect of the goods subject to the declaration shall include:
The export invoice upon which the declaration as to origin is affixed and in
(a) a full description;
(b) six digit Harmonized System Code;
(c) the producer's name(s) if known; and
(d) the importer's name(s) in respect of imported goods, if known.
5. If the export invoice does not include the information referred to in Paragraph 4, it must be added in "observations" on the declaration as to origin in the form set out in Annex 4.C.
6. The declaration shall be in the form set out in Annex 4.C, and the certificate of origin shall be in the form set out in Annex 4.D. These requirements may thereafter be revised or modified by an Implementing Arrangement agreed among the Parties.
7. The declaration and the certificate of origin shall remain valid for a period of 2 years from the date on which the respective documents were issued.
8. If the exporter is not the producer of the good referred to on the declaration or on the certificate of origin, that exporter may complete and sign the declaration on the basis of:
(a) the exporter's knowledge of whether the good qualifies as an originating good; or
(b) a producer’s written declaration that the good qualifies as an originating good in that it meets the terms of this Chapter.