Title
Australia-Indonesia Comprehensive Economic Partnership Agreement (CEPA)
Preamble
The Government of Australia ("Australia") and the Government of the Republic of Indonesia ("Indonesia"), hereinafter referred to collectively as "the Parties":
REINFORCING the longstanding bonds of friendship and cooperation between them, the growing bilateral economic relationship and their shared regional interests and ties;
RECALLING the positive contribution made to the trade and investment relationship between the Parties by the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area ("AANZFTA"), signed at Hua Hin on 27 February 2009;
MINDFUL of the Asia-Pacific Economic Cooperation goals of free and open trade and investment;
RECOGNISING that open, transparent and competitive markets are key drivers of economic growth, poverty reduction, job creation, innovation, expansion of productive capacity and human development;
RESOLVING to create clear and mutually advantageous rules governing their trade and investment to promote a predictable, transparent and consistent commercial framework for business operations, minimise barriers, enhance economic efficiency and create a larger market with more opportunities for business;
DESIRING to generate broader and deeper economic integration between the Parties, strengthening inclusive economic growth and development, and advancing economic cooperation;
RESOLVING to strengthen their economic, trade, and investment relations to contribute to the objectives of sustainable development in its economic, social and environmental dimensions, and to promote trade and investment under this Agreement;
ACKNOWLEDGING the important role and contribution of business in expanding trade and investment between the Parties and the need to further promote and facilitate cooperation and utilisation of the greater business opportunities provided by this Agreement; and
BUILDING ON the respective rights and obligations and undertakings of the Parties under the Marrakesh Agreement Establishing the World Trade Organization (âWTO Agreementâ) and other existing international agreements and arrangements to which the Parties are party;
HAVE AGREED AS FOLLOWS:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. Establishment of the Indonesia-Australia Comprehensive Economic Partnership as a Free Trade Area
The Parties, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish the Indonesia-Australia Comprehensive Economic Partnership as a free trade area in accordance with the provisions of this Agreement.
Article 1.2. Objectives the Objectives of the Parties In Concluding this Agreement Are to:
(a) establish a framework for enhanced cooperation to promote the development of a predictable, transparent and consistent business environment that will lead to the improvement of economic efficiency and the growth of trade and investment;
(b) progressively liberalise and facilitate trade in goods between the Parties through, inter alia, progressive elimination of tariff and non-tariff barriers in substantially all trade in goods between the Parties;
(c) progressively liberalise trade in services between the Parties to achieve a high quality agreement that has substantial sectoral coverage and provides for the substantial elimination of restrictions and discriminatory measures affecting trade in services;
(d) create a liberal, facilitative and competitive investment environment, that will enhance investment opportunities between the Parties through promotion, protection, facilitation and liberalisation of foreign investment;
(e) create frameworks that promote the utilisation of electronic commerce in trade and investment between the Parties;
(f) cooperate in the promotion of competition, economic efficiency, consumer welfare and the mitigation of anti-competitive practices;
(g) promote economic cooperation for the effective and efficient implementation and utilisation of this Agreement; and
(h) facilitate trade between the Parties by promoting efficient and transparent procedures that expedite the movement, release and clearance of goods to reduce costs and ensure predictability for importers and exporters.
Article 1.3. Relation to other Agreements
1. Recognising the Parties' intention for this Agreement to coexist with their existing international agreements, including the WTO Agreement, each Party affirms its existing rights and obligations with respect to the other Party. (1)
2. If a Party considers that a provision of this Agreement is inconsistent with a provision of another agreement to which it and the other Party are party, the Parties shall, on request, consult with each other with a view to reaching a mutually satisfactory solution. (2) This paragraph is without prejudice to a Party's rights and obligations under Chapter 20 (Consultations and Dispute Settlement).
Article 1.4. General Definitions (3)
For the purposes of this Agreement, unless otherwise specified in this Agreement:
AD Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
Agreement means the Indonesia-Australia Comprehensive Economic Partnership Agreement;
central level of government means:
(i) for Australia, the Commonwealth government; and
(i) for Indonesia, the central level of the Government of the Republic of Indonesia;
covered investment means, with respect to a Party, an investment in its territory of an investor of the other Party in existence as of the date of entry into force of this Agreement or established, acquired or expanded thereafter and which, where applicable, has been admitted according to its laws and regulations (4),
customs administration means:
(i) for Australia, the Department of Home Affairs or its successor; and
(ii) for Indonesia, the Directorate General of Customs and Excise, Ministry of Finance;
customs duty means any customs or import duty and a charge of any kind, including any tax or surcharge, imposed in connection with the importation of a good, but does not include any:
(i) charge equivalent to an internal tax imposed consistently with the provisions of paragraph 2 of Article II of GATT 1994, in respect of the like domestic product or in respect of an article from which the imported product has been manufactured or produced in whole or in part;
(i) anti-dumping or countervailing duty applied consistently with the provisions of Article VI of GATT 1994, the AD Agreement, as may be amended and the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement, as may be amended; or
(iii) fee or any charge commensurate with the cost of services rendered;
Customs Valuation Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement; days means calendar days, including weekends and holidays; enterprise means any entity constituted or organised under applicable law, whether or not for profit, and whether privately or governmentally owned or controlled, including any corporation, trust, partnership, sole proprietorship, joint venture, association, or similar organisation;
existing means in effect on the date of entry into force of this Agreement;
GATS means the General Agreement on Trade in Services in Annex 1B to the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
good means any merchandise, product, article or material;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System established by the International Convention on the Harmonized Description and Coding System signed at Brussels on 14 June 1983, as amended;
Joint Committee means the Joint Committee established in accordance with Article 18.1 (Establishment of the Joint Committee) of Chapter 18 (Institutional Provisions);
measure means any measure by a Party, whether in the form of a law, regulation, tule, procedure, decision, administrative action or any other form;
natural person of a Party means:
(i) for Australia, a natural person who is an Australian citizen as defined in the Australian Citizenship Act 2007, as amended from time to time, or any successor legislation or a permanent resident of Australia;
(ii) for Indonesia, a natural person who is Indonesian national as defined in the Indonesia Law No. 12/2006, as amended from time to time, or any successor legislation;
originating good means qualifying as originating under the rules of origin set out in Chapter 4 (Rules of Origin);
perishable goods means goods that rapidly decay due to their natural characteristics, in particular in the absence of appropriate storage conditions;
person means a natural person or an enterprise; regional level of government means:
(i) for Australia, a state of Australia, the Australian Capital Territory, or the Northern Territory; and
(i) for Indonesia, a province of Indonesia, as defined under Indonesian law;
Safeguards Agreement means the Agreement on Safeguards in Annex 1A to the WTO Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement;
territory means:
(i) for Australia:
(A) the territory of Australia, excluding all external territories other than the Territory of Norfolk Island, the Territory of Christmas Island, the Territory of Cocos (Keeling) Islands, the Territory of Ashmore and Cartier Islands, the Territory of Heard Island and McDonald Islands, and the Coral Sea Islands Territory; and
(B) Australia's territorial sea, contiguous zone, exclusive economic zone and continental shelf over which Australia exercises sovereignty, sovereign rights or jurisdiction, as the case may be, in accordance with international law, including the United Nations Convention on the Law of the Sea, done at Montego Bay, December 10, 1982;
(ii) for Indonesia, the land territories, internal waters, archipelagic waters, territorial sea, including seabed and subsoil thereof, and airspace over such territories and waters, as well as continental shelf and exclusive economic zone, over which Indonesia has sovereignty, sovereign rights or jurisdiction as defined in its laws and in accordance with international law, including the United Nations Convention on the Law of the Sea, done at Montego Bay, December 10, 1982;
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.
Chapter 2. TRADE IN GOODS
Article 2.1. Definitions
For the purposes of this Chapter, unless otherwise specified:
Agreement on Agriculture means the Agreement on Agriculture in Annex 1A to the WTO Agreement;
consular transactions means requirements that documents related to goods of a Party intended for export to the territory of the other Party must first be submitted to the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas. Such documents may include commercial invoices, certificates of origin, manifests, shippersâ export declarations, or any other customs documentation required on or in connection with importation;
export subsidy means a subsidy as defined by Article 3 of the SCM Agreement and includes export subsidies listed in Article 9 of the Agreement on Agriculture; and
import licensing means an administrative procedure requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body of the importing Party as a prior condition for importation into the territory of that Party.
Article 2.2. Reduction or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, each Party shall reduce or eliminate its customs duties on originating goods of the other Party in accordance with its schedule of tariff commitments in Annex 2-A.
2. Except as otherwise provided in this Agreement, neither Party shall apply customs duties on an originating good of the other Party above the rate specified in its schedule of tariff commitments in Annex 2-A.
3. If the most-favoured-nation (hereinafter referred to as "MFN") rate of customs duty applied by a Party on a particular good is lower than the rate of customs duty provided for in its schedule of tariff commitments in Annex 2-A, that Party shall:
(a) apply the lower rate to the originating good of the other Party; and
(b) publish changes to the MEN rate on the internet.
Article 2.3. Tariff Rate Quotas
For products in respect of which a Party establishes a Tariff Rate Quota ("TRQ") in its Schedule to Annex 2-A, that Party shall grant tariff preference to imports of such products from the other Party as specified in the Appendix to the first Partyâs Schedule.
Article 2.4. National Treatment on Internal Taxation and Regulation
Each Party shall accord national treatment to the goods of the other Party in accordance with Article II] of GATT 1994. To this end, Article I of GATT 1994 shall be incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.5. Customs Valuation
For the purposes of determining the customs value of goods traded between the Parties, the provisions of Part I of the Customs Valuation Agreement shall apply mutatis mutandis.
Article 2.6. Acceleration or Improvement of Tariff Commitments
1. On the request of a Party, the other Party shall consult with the requesting Party to consider accelerating or improving its schedule of tariff commitments in Annex 2-A.
2. An agreement between the Parties to accelerate or improve the schedule of tariff commitments in Annex 2-A shall be incorporated into this Agreement in accordance with Article 2 (Amendments) of Chapter 21 (Final Provisions).
3. A Party may at any time unilaterally accelerate or improve its schedule of tariff commitments in Annex 2-A. A Party intending to do so shall inform the other Party before the new schedule of tariff commitments takes effect, or, in any event, as early as ptacticable. For greater certainty, a Party may raise a customs duty to the level established in its schedule of tariff commitments in Annex 2-A following a temporary unilateral acceleration or improvement.
Article 2.7. Elimination of Export Subsidies
Neither Party shall adopt or maintain any export subsidy on any good destined for the territory of the other Party.
Article 2.8. Administrative Fees and Formalities
1. Article VUI of the GATT 1994 is incorporated into and made part of this agreement, mutatis mutandis.
2. Neither Party shall require consular transactions, including related fees and charges, in connection with the importation of any good of the other Party.
3. Each Party shall make publicly available including on the internet where feasible details of the fees and charges that it imposes in connection with importation and exportation.
Article 2.9. Duty-Free Entry of Commercial Samples of Negligible Value
Each Party shall grant duty-free entry to commercial samples of negligible value imported from the territory of the other Party, regardless of their origin, but may require that commercial samples of negligible value be imported solely for the solicitation of orders for goods or services provided from the territory of the other Party or a non-Party and not be imported for commercial sale.
Article 2.10. Classification of Goods and Transposition of Schedules of Tariff Commitments
1. The classification of goods in trade between the Parties shall be in conformity with the Harmonised System and its amendments.
2. The Parties shall mutually decide whether any revisions are necessary to implement Annex 2-A due to periodic amendments and transposition of the HS Code.
3. If the Parties decide that revisions are necessary in accordance with paragraph 2, the transposition of the schedules of tariff commitments shall be carried out in accordance with the methodologies and procedures adopted by the Committee on Trade in Goods. The procedures should, at a minimum, provide for:
(a) the timely circulation by a Party of a draft schedule of tariff commitments in the nomenclature of the revised HS Code accompanied by a two-way transposition setting out at national tariff line level:
(i) a concordance between the draft schedule of tariff commitments in the nomenclature of the revised HS Code and the schedule of tariff commitments in the nomenclature of the then current HS Code; and
(i) a concordance between the schedule of tariff commitments in the nomenclature of the then current HS Code and the draft schedule of tariff commitments in the nomenclature of the revised HS Code;
(b) the provision of comments by the other Party on the draft schedules circulated in accordance with sub-paragraph (a), and consultations between the Parties, as necessary, with a view to resolving any concerns raised. Consultations shall take place within 60 days of a Party requesting such consultations.
4. Following completion of the transposition process in paragraph 3, the Parties through the Committee on Trade in Goods shall endorse and publish such revisions in a timely manner.
5. Each Party shall ensure that the transposition of its schedule of tariff commitments under paragraph 3 does not afford less favourable treatment to an originating good of the other Party set out in its schedule of tariff commitments in Annex 2-A.
Article 2.11. Committee on Trade In Goods
1. The Parties hereby establish a Committee on Trade in Goods ("the Committee") comprising representatives of each Party.
2. The Committee shall meet as necessary to consider any matters arising under this Chapter. The Committee shall meet at least once a year unless agreed otherwise by the Parties.
3. The Committee shall establish a contact point for each Party at a senior level to facilitate communication between the Parties, including to encourage consultation, as early as practicable, on any matter relating to this Chapter or Chapter 3 (Non-Tariff Measures) that creates disruption or may affect trade in goods between the Parties.
4. The Committee's functions shall include, inter alia:
(a) reviewing and monitoring the implementation of this Chapter;
(b) promoting trade in goods between the Parties, including consultations on accelerating or improving tariff commitments under this Agreement and other issues as appropriate;
(c) addressing barriers to trade in goods between the Parties especially those related to the application of non-tariff measures, and, where appropriate, referring any matters to the Joint Committee for consideration;
(d) endorsing the transposition of the schedules of tariff commitments in Annex 2-A in accordance with Article 2.10, and consulting to resolve any conflicts;
(e) reviewing and endorsing reports from:
(i) the Sub-Committee on Sanitary and Phytosanitary Matters;
(ii) the Sub-Committee on Technical Barriers to Trade;
(iii) the Sub-Committee on Trade Facilitation; and
(iv) the Sub-Committee on Rules of Origin;
(f) identifying, reviewing and recommending activities to be submitted to the Committee on Economic Cooperation, including activities proposed by the Sub- Committees referred to in sub-paragraph (e) above; and
(g) discussing any other matter arising under this Chapter as agreed by the Parties.
5. The Committee shall consult, as appropriate, with other committees established under this Agreement when addressing issues of relevance to those committees.
6. The Committee shall prepare and submit a report on its work to the Joint Committee annually, or as otherwise agreed by the Parties. In preparing such reports, the Committee shall consult, as appropriate, with the Sub-Committee on Sanitary and Phytosanitary Matters, the Sub-Committee on Technical Barriers to Trade, the Sub- Committee on Trade Facilitation and the Sub-Committee on Rules of Origin.
7. The meetings of the Committee may occur in person, or by any other means as agreed by the Parties.
Article 2.12. Exchange of Data
1. The Parties recognise the value of trade data in accurately analysing the implementation of the Agreement. The Parties shall cooperate with a view to conducting periodic exchanges of data relating to trade in goods between the Parties. The Committee on Trade in Goods may determine procedures, as appropriate, for any exchanges of data under this paragraph.
2. A Party shall give positive consideration to a request from the other Party for technical assistance for the purposes of exchange of data under paragraph 1.
Article 2.13. Relation to Safeguard Measures Under the WTO Agreement
1. Nothing in this Agreement shall affect the rights and obligations of the Parties under Article XIX of GATT 1994, the Safeguards Agreement and Article 5 of the Agreement on Agriculture.
2. Except as provided in paragraph 3, nothing in this Agreement shall confer any rights or impose any obligations on the Parties with regard to actions taken in accordance with Article XIX of GATT 1994, the Safeguards Agreement or Article 5 of the Agreement on Agriculture.
3. On the request of the other Party, a Party that initiates a safeguard investigatory process shall provide to the other Party an electronic copy of the notification given to the WTO Committee on Safeguards under Article 12.1(a) of the Safeguards Agreement.
Article 2.14. Antidumping and Countervailing Duties
Each Party retains its rights and obligations under Article VI of the GATT 1994, the AD Agreement and the SCM Agreement, and nothing in this Agreement shall be construed to confer any additional rights or impose any additional obligations on a Party.
Article 2.15. Trade Remedies Dialogue
1. In order to enhance transparency and mutual understanding on trade remedies including on their respective trade remedies system and practices, the Parties agree to establish a High Level Dialogue.
2. The Parties shall meet at senior officialsâ level. The first meeting shall be within one year of entry into force of this Agreement and subsequent meetings shall be as agreed by the Parties thereafter.
Chapter 3. NON-TARIFF MEASURES
Article 3.1. General Application
1. Unless otherwise provided, neither Party shall adopt or maintain any non-tariff measure on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except in accordance with its WTO rights and obligations or this Agreement.