1. Each Party shall ensure that any person to whom it issues a decision on a customs matter has access, within its territory, to:
(a) administrative review by an administrative authority higher than or independent of the employee or office that issued the decision; and
(b) judicial review of the decision.
2. Each Party shall ensure that the decision on appeal shall be given to the appellant and the reasons for such decision shall be provided in writing.
Article 5.9. Penalties
1. Each Party shall adopt or maintain measures that allow for the imposition of civil or administrative penalties and, where appropriate, criminal sanctions for violations of its customs law.
2. Each Party shall ensure that a penalty imposed by its customs administration for a breach of customs law is imposed only on the person legally responsible for the breach.
3. Each Party shall ensure that the penalty imposed by its customs administration is dependent on the facts and circumstances! of the case and is commensurate with the degree and severity of the breach.
4. Each Party shall ensure that if a penalty is imposed by its customs administration for a breach of customs law, an explanation in writing is provided to the person upon whom the penalty is imposed specifying the nature of the breach and the law used for determining the penalty.
Article 5.10. Risk Management 1. Each Party Shall Adopt or Maintain a Risk Management System for Assessment and
1. Each Party shall adopt or maintain a risk management system for assessment and targeting that enables its customs administration to focus its inspection activities on high- risk goods and that simplifies the clearance and movement of low-risk goods.
2. In order to facilitate trade, each Party shall periodically review and update, as appropriate, the risk management system specified in paragraph 1.
Article 5.11. Release of Goods
1. In order to facilitate bilateral trade, each Party shall adopt or maintain simplified customsproceduresfortheefficientreleaseofgoods. Thisparagraphshallnotrequirea Party to release a good if its requirements for release have not been met.
2. In accordance with paragraph 1, each Party shall adopt or maintain procedures that:
(a) provide for the release of goods within a period no greater than that required to ensure compliance with its customs laws;
(b) provide for customs information to be submitted and processed in electronic format as appropriate, before the goods arrive in order to expedite the release of goods from customs control upon arrival;
(c) allow goods to be released at the point of arrival without temporary transfer to warehouses or other facilities; and
(d) allow the release of goods prior to the final determination of customs duties, taxes, fees and charges, if such a determination is not done prior to, or upon arrival, or as rapidly as possible after arrival and provided that all other regulatory requirements have been met.
3. As a condition for such release, a Party may require:
(a) payment of customs duties, taxes, fees and charges determined prior to or upon arrival of goods and a guarantee for any amount not yet determined in the form of a surety, a deposit or another appropriate instrument provided for in its laws and regulations; or
(b) a guarantee in the form of a surety, a deposit or other appropriate instrument provided for in its laws and regulations.
4. If a Party allows for the release of goods conditioned on a security, it shall adopt or maintain procedures that:
(a) ensure that the amount of the security is no greater than that required to ensure that obligations arising from the importation of the goods will be fulfilled; and
(b) ensure that the security shall be discharged as soon as possible after its
customs administration is satisfied that the obligations ar ising from the
importation of the goods have been fulfilled.
Article 5.12. Temporary Admission of Goods
1. Each Party shall allow temporary admission as provided for in its laws and regulations, and grant duty-free temporary admission for goods including, but not limited to, the following, regardless of their origin:
(a) professional equipment, including equipment for the press or television, software, and broadcasting and cinematographic equipment, that is necessary for carrying out the business activity, trade or profession of a person who qualifies for temporary entry in accordance with the laws and regulations of the importing Party;
(b) goods intended for display or demonstration;
(c) commercial samples;
(d) goods admitted for sports purposes;
(e) goods admitted for repair or alteration from the territory of the other Party; (2)
and
(f) containers, pallets and packing material, that are in use or to be used in the international transportation of goods.
2. Each Party shall, on request of the person concerned and for reasons its customs administration considers valid, extend the time limit for temporary admission beyond the period initially fixed.
3. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than the port through which it was admitted.
4. Each Party shall, in accordance with its laws and regulations, provide that the importer or other person responsible for a good admitted under this Article shall not be liable for failure to export the good on presentation of satisfactory proof to the importing Party that the good was destroyed within the period fixed for temporary admission, including any lawful extension.
Article 5.13. Information Technology
1. Each Party shall apply information technology to support customs operations, where it is cost-effective and efficient, particularly in the paperless trading context, taking into account developments in this area within relevant international organisations, including the World Customs Organization.
2. The customs administration of each Party shall endeavour to establish as soon as practicable an electronic means for communication of relevant information required by it and other relevant, trade-related agencies to facilitate the international movement of goods and means of transport.
3. The introduction and enhancement of information technology shall, to the greatest extent possible, be carried out in consultation with relevant parties, including businesses directly affected.
Article 5.14. Confidentiality
1. Nothing in this Chapter shall be construed to require any Party to furnish or allow access to confidential information in accordance with this Chapter, the disclosure of which it considers would:
(a) be contrary to the public interest as determined by its laws and regulations;
(b) be contrary to any of its laws and regulations including, but not limited to, laws and regulations protecting personal privacy or the financial affairs and accounts of individual customers of financial institutions;
(c) impede law enforcement; or
(d) prejudice legitimate commercial interests, which may include competitive position, of particular enterprises, public or private.
2. Where a Party provides information to the other Party in accordance with this Chapter and designates the information as confidential, the Party receiving the information shall maintain the confidentiality of the information, use it only for the purposes specified by the Party providing the information, and not disclose it without the specific written permission of the Party providing the information.
Chapter 6. TRADE FACILITATION
Article 6.1. Definitions
For the purposes of this Chapter: Trade Facilitation Agreement means the Agreement on Trade Facilitation in Annex 1A to the WTO Agreement.
Article 6.2. Objectives
The objectives of this Chapter are to:
(a) expedite the movement, release and clearance of goods, including goods in transit; and
(b) provide for effective cooperation so as to support the Parties in acquiring capacity to implement trade facilitative measures, including those provided under the Trade Facilitation Agreement.
Article 6.3. Scope
This Chapter shall apply to trade in goods between the Parties and shall be implemented in accordance with the Parties’ respective laws and regulations.
Article 6.4. Publication and Enquiry Points
1. Each Party shall promptly publish the following information in a non- discriminatory and easily accessible manner in order to enable governments, traders, and other interested parties to become acquainted with them:
(a) procedures relating to the administration of tariff quotas;
(b) country of origin marking, if it is a prerequisite for importation;
(c) the eligibility requirements for goods re-entered after repair and alteration;
(d) procedures for importation, exportation, and transit (including port, airport, and other entry-point procedures), and required forms and documents;
(e) fees and charges imposed by or for governmental agencies on or in connection with importation, exportation or transit;
(f) laws, regulations, and administrative rulings of general application relating to rules of origin;
(g) import, export or transit restrictions or prohibitions; and
(h) procedures for appeal or review.
2. Each Party shall, within its available resources, establish or maintain one or more enquiry points to expeditiously provide advice or information to answer reasonable enquiries of governments, traders, and other interested parties on matters covered by paragraph 1, and to provide the required forms and documents referred to in paragraph 1(d) preferably through electronic means.
Article 6.5. Perishable Goods
1. With a view to preventing avoidable loss or deterioration of perishable goods, and provided all regulatory requirements have been met, each Party shall provide for the release of perishable goods:
(a) under normal circumstances within the shortest possible time; and
(b) in exceptional circumstances where it would be appropriate to do so, outside the business hours of customs and other relevant authorities.
2. Each Party shall give appropriate priority to perishable goods when scheduling any examinations that may be required.
3. Each Party shall either arrange, or allow an importer to arrange, for the proper storage of perishable goods pending their release. That Party may require that any storage facilities arranged by the importer have been approved or designated by its relevant authorities. The movement of the goods to those storage facilities, including authorisations for the operator moving the goods, may be subject to the approval, if required, of the relevant authorities. That Party shall, where practicable and in accordance with its laws and regulations, on the request of the importer, provide for any procedures necessary for release to take place at those storage facilities.
4. In cases of significant delay in the release of perishable goods, and upon written request, the importing Party shall, to the extent practicable, provide a communication on the reasons for the delay.
Article 6.6. Acceptance of Copies
1. Each Party shall, where appropriate, accept paper or electronic copies of supporting documents required for import, export or transit formalities.
2. Where a government agency of a Party already holds the original of such a document, any other agency of that Party shall accept a paper or electronic copy, where applicable, from the agency holding the original in lieu of the original document.
3. A Party shall not require an original or copy of export declarations submitted to the customs administrations of the exporting Party as a requirement for importation. Nothing in this paragraph precludes a Party from requiring documents such as certificates, permits or licenses as a requirement for the importation of controlled or regulated goods.
Article 6.7. Support for Trade Facilitation
In order to expedite the movement, release and clearance of goods, and to provide for effective cooperation in acquiring capacity to implement on trade facilitative measures, the Parties agree that:
(a) all provisions of this Chapter shall apply between the Parties 90 days after the date of entry into force of this Agreement unless a Party notifies the other Party that it currently lacks the capacity to implement a provision of this Chapter. Such notification shall be made through diplomatic channels within 90 days of the date of entry into force of this Agreement. A provision notified in this way shall not apply between the Parties until such notification is revoked;
(b) the Committee on Trade in Goods established under Article 2.11 (Committee on Trade in Goods) of Chapter 2 (Trade in Goods) shall consider any assistance required for the Parties to acquire the capacity to implement the notified provisions and keep under review the implementation capacity of the Parties at each meeting; and
(c) the Committee on Trade in Goods may decide to revoke a notification under subparagraph (a) with respect to a provision of this Chapter. Where a notification is revoked the relevant provision shall apply between the Parties, from a date agreed between the Parties.
Article 6.8. Trade Facilitation Sub-Committee
1. For the purposes of the effective implementation and operation of this Agreement relating to matters within the scope of this Chapter, the Parties hereby establish a Sub- Committee on Trade Facilitation (the Trade Facilitation Sub-Committee).
2. The functions of the Trade Facilitation Sub-Committee shall be:
(a) reviewing and monitoring the implementation and operation of this Agreement relating to matters within the scope of this Chapter;
(b) identifying areas relating to matters within the scope of this Chapter to be improved to facilitate trade between the Parties;
(c) recommending economic cooperation activities relating to matters within the scope of this Chapter to the Committee on Trade in Goods;
(d) reporting the findings of the Trade Facilitation Sub-Committee to the Committee on Trade in Goods; and
(e) carrying out other functions as may be delegated by the Committee on Trade in Goods.
3. The Trade Facilitation Sub-Committee shall be composed of and co-chaired by representatives of the governments of the Parties.
4. The Trade Facilitation Sub-Committee shall meet at such venues and times and by such means as may be agreed by the Parties.
Chapter 7. SANITARY AND PHYTOSANITARY MEASURES
Article 7.1. Definitions
For the purposes of this Chapter:
competent authorities mean those authorities within each Party recognised by the national government as responsible for developing and administering sanitary and phytosanitary measures within that Party;
international standards, guidelines and recommendations shall have the same meaning as set out in paragraph 3 of Annex A to the SPS Agreement; and
sanitary or phytosanitary measure shall have the same meaning as set out in paragraph | of Annex A to the SPS Agreement.
Article 7.2. Objectives
The objectives of this Chapter are to:
(a) protect human, animal or plant life or health in the territory of each Party while facilitating bilateral trade;
(b) provide greater transparency in and deepen understanding of the application of each Partyâs laws, regulations and procedures relating to sanitary and phytosanitary measures;
(c) strengthen communication, consultation and cooperation between the Parties and particularly between the Parties' competent authorities which are responsible for matters covered by this Chapter; and
(d) enhance practical implementation of the principles and disciplines contained within the SPS Agreement.
Article 7.3. Scope
This Chapter shall apply to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties.
Article 7.4. General Provisions
1. Each Party affirms its rights and obligations with respect to each other under the SPS Agreement.
2. The Parties commit to apply the principles of the SPS Agreement in the development, application or recognition of any sanitary or phytosanitary measures with the intent to facilitate trade between them, while protecting human, animal or plant life or health in the territory of each Party. The Parties also recognise the importance of ensuring that their respective sanitary and phytosanitary measures are based on scientific evidence in accordance with the SPS Agreement.
Article 7.5. Equivalence
1. The Parties recognise that the principle of equivalence as provided for under Article 4 of the SPS Agreement, has mutual benefits for both exporting and importing countries.
2. The Parties shall follow the procedures for determining the equivalence of SPS measures and standards developed by the WTO SPS Committee and relevant international standard setting bodies in accordance with Annex A of the SPS Agreement, as amended from time to time.
3. Compliance by an exported product that has been accepted as equivalent to SPS measures and standards of the importing Party shall not remove the need for that product to comply with any other relevant mandatory requirements of the importing Party.
Article 7.6. Adaptation to Regional Conditions
1. The Parties recognise that adaptation to regional conditions including regionalisation, zoning and compartmentalisation is an important means to facilitate trade. To that end, each Party shall take into account, as appropriate, relevant guidelines, standards and recommendations, developed by the WTO SPS Committee and other relevant international standard setting bodies, in accordance with Annex A of the SPS Agreement.
2. The Parties shall give positive consideration to cooperation on matters relating to the recognition of pest- or disease-free areas, and areas of low pest or disease prevalence in accordance with Article 6 of the SPS Agreement with the objective of acquiring confidence in the procedures followed by each Party for the recognition of pest- or disease-free areas, and areas of low pest or disease prevalence.
Article 7.7. Competent Authorities and Contact Points
1. Each Party shall provide the other Party with a description of its competent authorities and their division of responsibilities.
2. Each Party shall provide the other Party with a contact point to facilitate distribution of requests or notifications made in accordance with this Chapter.
3. Each Party shall ensure the information provided under paragraphs | and 2 is kept up to date.
Article 7.8. Transparency and Notification
1. The Parties recognise the value of transparency in the adoption and application of sanitary and phytosanitary measures, including through the sharing of information about their respective sanitary and phytosanitary measures.
2. Each Party shall notify changes to its sanitary and phytosanitary measures, including the development and adoption of a regulation, in accordance with Annex B of the SPS Agreement and relevant decisions of the WTO SPS Committee by using the WTO SPS notification submission system as a means of notifying the other Party at an early stage, allowing comments from the other Party in writing, discussing these comments on request of the other Party, and taking the comments and results of the discussion into account.
3. A Party shall normally allow at least 60 days for the other Party to provide written comments on the proposed measure after it makes the notification under paragraph 2. If feasible and appropriate, the notifying Party should allow more than 60 days. The notifying Party shall consider any reasonable request from the other Party to extend the comment period. On request of the other Party, the notifying Party shall respond to the written comments of the other Party in an appropriate manner.
4. The Parties recognise that paragraphs 2 and 3 are subject to the flexibilities for notification provided in Annex B of the SPS Agreement, including in cases where urgent problems of human, animal or plant life or health protection arise or threaten to arise for a Party.
Article 7.9. Cooperation 1. Each Party Shall Explore Opportunities for Further Cooperation, Collaboration and
1. Each Party shall explore opportunities for further cooperation, collaboration and information exchange with the other Party on sanitary and phytosanitary matters of mutual interest in accordance with the objectives of this Chapter.
2. In relation to paragraph 1, each Party shall endeavour to coordinate with regional or multilateral work programmes with the objective of avoiding unnecessary duplication and to maximise the benefits from the application of resources.
3. The Parties agree to further explore how they can strengthen cooperation on the provision of technical assistance especially in relation to trade facilitation.
Article 7.10. Technical Consultations
1. If a Party considers that there is a disruption to trade on sanitary and phytosanitary grounds, it may request technical consultations with the other Party on an urgent basis with a view to facilitating trade.
2. On receiving a request under paragraph 1, the other Party shall promptly provide any requested information and respond to questions pertaining to the matter, and if requested, enter into consultations within 30 days of receiving such a request. The Parties shall make every effort to reach a mutually satisfactory resolution through consultations within 60 days of receiving a request for consultations, or a timeline agreed upon by the Parties.
Article 7.11. SPS Sub-Committee
1. The Parties hereby agree to establish a Sub-Committee on Sanitary and Phytosanitary Matters (SPS Sub-Committee), consisting of representatives from the relevant government agencies of each Party.
2. The SPS Sub-Committee shall meet within one year of the date of entry into force of this Agreement and annually thereafter, unless the Parties otherwise agree.
3. The SPS Sub-Committee may set up subsidiary working groups, as agreed between the Parties.
4. The SPS Sub-Committee shall agree its terms of reference and the terms of reference of subsidiary working groups established under paragraph 3 as soon as possible after the date of entry into force of this Agreement, but no later than the conclusion of the first meeting of the SPS Sub-Committee. The terms of reference may be amended at any time by written agreement of the Parties.
5. The SPS Sub-Committee shall review the progress made by the Parties in implementing their commitments under this Chapter.
6. The SPS Sub-Committee may consider proposals for technical cooperation activities on sanitary and phytosanitary matters and perform any other function set out in its terms of reference in accordance with paragraph 4, unless the Parties otherwise agree.
7. Subsidiary working groups may meet to make decisions bilaterally implementing the commitments under this Chapter relating to agriculture, food, fisheries, forestry, and sanitary and phytosanitary policy matters and measures. Each working group shall provide to the SPS Sub-Committee updates on the status of their work,
8. Decisions and records of meetings held under this Article shall be agreed by the Parties. Meetings may occur in person, by teleconference, by video conference, or through any other means as mutually determined by the Parties.
9. The SPS Sub-Committee shall report to the Committee on Trade in Goods or a subsidiary body established by it.
Article 7.12. Non-Application of Chapter 20 (Consultations and Dispute Settlement)
Chapter 20 (Consultations and Dispute Settlement) shall not apply to any matter arising under this Chapter.