5. From the date of entry into force of this Additional Protocol, each Party shall notify the other Parties, of any new import licensing procedure and of any amendment to their existing import licensing procedures, within 20 days before their entry into force.
6. A notice provided under this Article shall include the information set out in Section 5 of the Agreement on Import Licensing.
7. Before applying any new or amended import licensing procedure a Party shall publish the new procedure or its amendment on the official government website or in its official journal. The Party shall do so at least 20 days before the new procedure or amendment enters into force. The Party adopting or amending any import licensing procedure, shall notify the representatives of the other parties in the Committee on Market Access.
8. The Parties shall apply the provisions of this Article to import licensing procedures to goods of any other Party.
Article 3.9. Administrative Fees and Formalities
1. Each Party shall ensure, in accordance with paragraph 1 of Section VIII of GATT 1994 and its interpretative notes, that all fees and charges of whatever nature, different from customs duties, charges equivalent to an excise tax or other internal taxes applied in accordance with paragraph 2 of Section Ill of GATT 1994, and antidumping rights and countervailing measures, taxes on imports or exports or in connection therewith, shall be limited to the approximate cost of services rendered and shall not represent an indirect protection to domestic goods or a duty on imports or exports for tax purposes.
2. No Party shall demand consular transactions or requirements, including fees or charges related, in connection with the importation of any merchandise of the other Party.
3. Each Party shall make available the fees and charges imposed in connection with import or export, and make the best effort to keep them updated through Internet.
Article 3.10. Taxes, Duties or Charges to Export
Unless otherwise provided in Annex 3.10, no Party shall adopt or maintain any tax, duty or other charge on the export of any good destined for the territory of another Party, unless such tax, duty or charge is also adopted or maintained on such good when destined to domestic consumption.
Section E. Special Customs Procedures
Article 3.11. Customs Duty Waiver
1. No Party shall adopt any new customs duty waiver, or extend the application of an existing customs duty waiver, in respect of the current beneficiaries, or will extend such waiver to new beneficiaries, when the waiver is conditioned, explicitly or implicitly, on the fulfillment of a performance requirement.
2. No Party shall condition, explicitly or implicitly, the continuation of an existing customs duty waver on the fulfillment of a performance requirement.
3. Each Party incorporates the rights and obligations arising under the Subsidies Agreement.
Article 3.12. Temporary Admission or Import of Goods
1. Each Party, in accordance with its law, shall authorize the temporary admission or import free of customs duties to the following goods, admitted or imported into its territory from the territory of other Party, regardless of their origin:
(a) Professional equipment, including press or television equipment, computer programs, and broadcasting and filmmaking equipment, necessary in the conduct of business, trade or professional activity of the person who qualifies for temporary entry pursuant to the legislation of the importing Party;
(b) Goods intended for display or demonstration including their component parts, auxiliary devices and accessories;
(c) Commercial samples and advertising films and recordings, and
(d) Goods imported or admitted for sports purposes.
2. Each Party, at the request of the interested person and for reasons its customs authority considers valid, shall extend the time-limit for the temporary admission or import, beyond the initial deadline, in accordance with its legislation.
3. No Party shall impose a condition on the temporary admission or import free of customs duties to a good referred to in paragraph 1, other than that the good:
(a) Be used solely by or under the personal supervision of a national or resident of other Party in the conduct of the business, trade, profession, or sport activity of such person;
(b) Not be sold or leased while in its territory;
(c) Be accompanied by a bond, if required by the importing Party in an amount not exceeding the charges that would be owed, if applicable, for the permanent entry or import, refundable upon exit of the goods;
(d) Be susceptible of identification when exported;
(e) Be exported on the departure of the person referred to in sub-paragraph (a), or within the time-limit set for the temporary admission or import that the Party may establish, in accordance with the time-limit established by its legislation;
(f) Be admitted or imported in a quantity no greater than what is reasonable for the use to which it is intended, and
(g) Be admitted or imported in another manner into the territory of the Party in accordance with its law.
4. If any of the conditions imposed by a Party under paragraph 3 has not been met, such Party may apply the customs duties or any other charge that would be normally owed for the permanent admission or import of the goods, plus any other charge or penalty in accordance with the provisions of its legislation.
5. Each Party shall adopt or maintain procedures in order to facilitate the expedited clearance of the goods admitted or imported under this Section. In so far as possible, when such goods accompany a national or resident of other Party who is seeking temporary entry, such procedures shall allow that the goods be released simultaneously with the arrival of that national or resident.
6. Each Party shall permit that a good temporarily admitted or imported under this Article be exported through a customs port different from the one through which it was temporarily admitted or imported.
7. Each Party shall provide that its customs authority or other competent authority release the importer, or any other person responsible for a good admitted or imported pursuant to this section, of any liability for the inability to export the good, by the submission of satisfactory evidence to the customs authority or other competent authority of the importing Party, that the good has been destroyed within the time-frame originally scheduled for temporary admission or import or any lawful extension.
8. No Party: (a) shall prohibit that a vehicle or container used in international transportation and that has entered into its territory from another Party, exit its territory on any route that is reasonably related to the inexpensive and prompt departure of such vehicle or container;
(b) shall require a bond or impose any penalty or charge solely on the reason that the port of entry of the vehicle or container is different from the port of exit.
(c) shall condition the release of any obligation, including any bond imposed at the entry of a vehicle or container to its territory, to its exit through a specific port, and
(d) shall require that the vehicle or carrier bringing to its territory a container from the territory of other Party, be the same vehicle or carrier that takes it to the territory of such other Party.
9. For the purposes of paragraph 8, vehicle means a truck, track-truck, tractor, trailer or trailer unit, locomotive or train wagon, or other railroad equipment.
Article 3.13. Goods Re-Imported after Repair or Alteration
1. No Party shall impose a customs duty on a good, regardless of its origin, that has been re-entered into its territory after having been temporarily exported from its territory or the territory of other Party to be repaired or altered, regardless of whether such repair or alteration could have been performed in the territory of the Party from which the good was exported for repair or alteration.
2. No Party shall impose a customs duty to a good that, regardless of its origin, is temporarily admitted from the territory of other Party for repair or alteration.
3. For purposes of this Section, repair or alteration does not include an operation or process that:
(a) Destroys the essential characteristics of a product or creates a new or commercially different good, or
(b) Transforms an unfinished good into a finished good.
Article 3.14. Duty-Free Import of Commercial Samples of Negligible Value and Printed Advertising Materials
Each Party shall grant duty-free import of commercial samples of negligible value and of printed advertising materials from the territory of other Party, regardless of their origin, but may require that: (a) Such samples be imported solely for the purpose of ordering goods or services provided from the territory of other Party, or from other country which is not a Party, or
(b) Such advertising materials be imported in packets that do not contain, each one, more than one copy of each print, and that neither the materials or the packets form part of a larger consignment.
Section F. Agriculture
Article 3.15. Scope
This Section applies to measures adopted or maintained by the Parties in connection with the trade in agricultural goods as defined by Annex I of the Agreement on Agriculture, which is part of the Agreement on WTO (hereinafter referred to as "agricultural goods").
Article 3.16. Export Subsidies
1. The Parties share the objective of achieving the multilateral elimination of export subsidies on agricultural goods and shall work together with a view to an agreement in the WTO to eliminate those subsidies and prevent their reintroduction in any form.
2. No Party shall adopt, maintain or reintroduce subsidies to the export of any agricultural good destined for the territory of other Party (1).
Part G. Committee on Market Access
Article 3.17. Committee on Market Access
1. The Parties hereby establish a Committee on Market Access (hereinafter the "Committee"), composed of representatives of each of the Parties, that will assist the Free Trade Commission in the performance of their duties. The meetings of the Committee and of any ad-hoc working group will be coordinated by:
(a) Inthe case of Chile, the Direccién General de Relaciones Econémicas Internacionales (General Directorate for International Economic Relations) of the Ministry of Foreign Affairs, or its successor;
(b) In the case of Colombia, the Ministerio de Comercio, Industria y Turismo (Ministry of Commerce, Industry and Tourism) or its successor;
(c) In the case of México, the Secretaria de Economia (Department of Economy), or its successor, and
(d) In the case of Peru, the Ministerio de Comercio Exterior y Turismo (Ministry of Foreign Trade and Tourism), or its successor.
2. The Committee shall meet at the place and in the opportunity agreed by the Parties, at the request of any of the Parties or of the Free Trade Commission in order to consider any matter arising under this Chapter.
3. The decisions of the Committee shall be adopted by consensus and reported to the appropriate instances.
4. Committee meetings may be held in person or through any technological means.
5. Notwithstanding the provisions of paragraph 1, the Committee may conduct sessions to discuss bilateral issues, provided that the other Parties are given sufficient notice in advance so that, if appropriate, they can participate in the meeting. The agreements reached at the meeting shall be adopted by consensus between the Parties concerned and shall shall have effect only in respect of them.
6. The Committee shall have the following functions:
(a) Monitor compliance, implementation and correct interpretation of the provisions of this Chapter and its Annexes, including future amendments to the Harmonized System (HS) to ensure the obligations of each Party under this Additional Protocol;
(b) Serve as a discussion forum for the Parties to consult and resolve on issues related to this Chapter, in coordination with any instance established in this Additional Protocol;
(c) Address barriers to the trade in goods between the Parties, especially those related to the implementation of non- tariff measures and, if appropriate, refer such matters to the Free Trade Commission for consideration;
(d) Make appropriate recommendations on matters within its competence to the Free Trade Commission;
(e) Coordinate the exchange of information on trade in goods between the Parties;
(f) Foster cooperation for the implementation and administration of this Chapter;
(g) Consult and address any differences that may arise between the Parties on matters related to the classification of goods under the Harmonized System (HS);
(h) Establish ad-hoc working groups with specific mandates, and
(i) Other functions entrusted by the Free Trade Commission.
Chapter 4. RULES OF ORIGIN AND PROCEDURES RELATED TO ORIGIN
Section A. 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 reproduction material such as eggs, small fish, fry, larvae, post-larvae and seedlings in order to increase production through the intervention in the rearing or growing processes, such as the regulation designed for preservation of livestock, feeding or protection from predators;
Competent authority for issuing certificates of origin means the authority, according to the respective laws of each Party, that is responsible for the issuance of the certificate of origin, which may delegate such function to authorized entities:
(a) In the case of Chile, the Dirección General de Relaciones Económicas Internacionales (Directorate General for International Economic Relations) or its successor;
(b) In the case of Colombia, the Dirección de Impuestos y Aduanas, DIAN (Customs and Taxes National Directorate) or its successor;
(c) In the case of Mexico, the Secretaría de Economia, (Department of Economy), or its successor, and
(d) In the case of Peru, the Ministerio de Comercio Exterior y Turismo, (the Ministry of Foreign Trade and Tourism), or its successor;
Competent authority for verification of origin means the authority, which according to the respective laws of each party is responsible for verifying origin:
(a) In the case of Chile, the Servicio Nacional de Aduanas (National Customs Service), or its successor;
(b) In the case of Colombia, the Dirección de Impuestos y Aduanas Nacionales, DIAN, or its successor;
(c) In the case of Peru, the Ministerio de Comercio Exterior y Turismo, (Ministry of Foreign Trade and Tourism) or its successor, and
(d) In the case of Mexico, the Servicio de Administración Tributaria de la Secretaria de Hacienda y Crédito Publico (Tax Administration Service of the Department of Finance and Public Credit), or its successor;
CIF means the value of imported goods and includes the cost of insurance and freight to the port or place of entry into the importing country, regardless of the means of transport;
Shipping and repacking costs means costs incurred in the repacking and transport of goods outside the territory where the producer or the exporter of the goods is located;
Costs of sales promotion, marketing and after-sales services of goods means the following costs:
(a) Sales promotion and marketing; media advertising; advertising and market research; promotion and demonstration materials; displayed goods; sales promotion conferences, trade shows and trade conventions; banners; marketing exhibitions; free samples; publications on sales, marketing and after-sales services such as goods brochures, catalogs, technical publications, price lists, service manuals and information to support sales; creation and protection of logos and trademarks; sponsorships; restocking fees for wholesale and retail, and entertainment expenses;
(b) Sales and marketing incentives, discounts to wholesalers, retailers and consumers;
(c) For personnel for sales promotion, marketing and after-sales services: wages and salaries, sales commissions; bonuses; medical, insurance and pension benefits; travel, lodging and meals expenses; and membership and professional dues;
(d) Recruitment and training of personnel for sales promotion, marketing and after-sale services, and training to employees of the customer after the sale, when in the financial statements and cost accounts of the producer, such costs are identified separately for sales promotion, marketing and after-sales services of goods;
(e) Insurance premiums for civil liability derived from the goods;
(f) Office supplies for sales promotion, marketing and post-sale services, when in the financial statements and cost accounts of the producer, such costs are identified separately for sales promotion, marketing and after-sales services of goods;
(g) Telephone, mail and other means of communication, when in the financial statements and cost accounts of the producer, such costs are identified separately for sales promotion, marketing and after-sales services of goods;
(h) Rents and depreciation of the offices of sales promotion, marketing and after-sales service, as well as of the distribution centers;
(i) Premiums for property insurance, taxes, utility costs and repair and maintenance costs of the offices and distribution centres, when in the financial statements and cost accounts of the producer, such costs are identified separately for sales promotion, marketing and after-sales services of goods;
(j) Payments by the producer to other persons for repairs covered by a warranty;
Net cost means total cost minus costs of sales promotion, marketing and after-sale services, shipping and repacking, and royalties;
Total cost means the sum of the following elements:
(a) The costs or the value of direct manufacturing materials used in the production of the good;
(b) The costs of direct labor used in the production of of the good, and
(c) An amount for direct and indirect costs and expenses incurred for the manufacture of the goods, reasonably allocated thereto, except for the following:
(i) The costs and expenses of a service provided by the producer of goods to another person, where the service is not related to the good;
(ii) The costs and losses resulting from the sale of a portion of the company of the producer, which constitutes a discontinued operation;
(iii) The costs related to the cumulative effect of changes in the application of Generally Accepted Accounting Principles;
(iv) The costs or losses resulting from the sale of a capital asset of the producer;
(v) The costs and expenses related to acts of God or force majeure;
(vi) The profits obtained by the producer of the goods, regardless of whether they were retained by the producer or paid to other persons as dividends and the taxes paid on those profits, including the taxes on capital gains, and
(vii) The interest costs that have been agreed between related persons and that exceed the interest paid at market interest rates;
Direct costs and expenses of manufacture means the costs and expenses incurred in a period, directly related to the goods, different from the costs or value of direct materials and costs of direct labor;
Indirect costs and expenses of manufacture means the costs and expenses incurred in a period, other than the direct costs and expenses of manufacture, the direct costs of labor, and the costs or the value of direct materials;
Determination of origin means the written document issued by the authority competent for the verification of origin as a result of a process of verification of origin of goods in accordance with this Chapter;
FOB means the value of the good free on board, including the costs of transport to the port or site of final shipment abroad regardless of means of transport;
Material means a good or any material such as components, ingredients, raw materials, parts or component parts that are used in the production of another good;
Packaging materials and containers for shipment means goods used to protect the goods during transport, different from the containers or packaging materials used for retail; Indirect material means a good used in the production, testing or inspection of another good but not physically incorporated into the good, such as:
(a) Fuel, energy, catalysts and solvents;
(b) Equipment, devices and accessories used for testing or inspection of the goods;
(c) Gloves, glasses, footwear, clothing, equipment and accessories;
(d) Tools, dies and molds;
(e) Spare parts and materials used in the maintenance of equipment and buildings;
(f) Lubricants, greases, composite materials and other materials used in production, equipment operation or maintenance of buildings, and
(g) Any other material that is not incorporated into the good but that can reasonably be demonstrated that is part of the process of production;
Intermediate material means an originating material that is produced by the producer of the good and used in the production of that good;
Fungible goods or materials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical and it is not possible to differentiate one from the other by the naked eye;
Generally Accepted Accounting Principles means the recognized consensus or substantial authorized support in the territory of a Party, with respect to records of income, expenses, costs, assets and liabilities; the disclosure of information; and the preparation of financial statements. These principles may encompass broad guidelines of general application as well as standards, practices and detailed procedures, and
Production means methods for obtaining goods, including, but not limited to, growing, raising, harvesting, fishing, hunting, capture, aquaculture, gathering, extraction, manufacturing, processing or assembling a good.
Article 4.2. Origin Criteria
Unless otherwise provided in this Chapter, a good shall be considered as originating in a Party where it is:
(a) Wholly obtained or produced entirely in the territory of one or more Parties in accordance with Article 4.3;
(b) Produced entirely in the territory of one or more Parties, exclusively from materials that qualify as originating in accordance with this Chapter, or
(c) Produced in the territory of one or more Parties, from materials non- originating, provided they comply with the Specific Requirements of Origin pursuant to Annex 4.2;
And the good satisfies all other applicable provisions in this Chapter.
Article 4.3. Wholly Obtained or Entirely Produced Goods
The following goods shall be considered as wholly obtained or produced entirely in the territory of one or more Parties:
(a) Vegetable goods, plants and plant products, harvested or gathered in the territory of one or more Parties;
(b) Live animals, born and raised in the territory of one or more Parties;
(c) Goods obtained from live the animals referred to in sub-paragraph (b);
(d) Goods obtained from hunting, fishing, aquaculture or gathering from the natural environment, carried out in the territory of one or more Parties;
(e) Mineral goods and other commodities naturally produced, extracted from the territory of one or more Parties;
(f) Goods, other than fish, crustaceans, molluscs and other forms of marine life captured by a Party from the waters, seabed or marine subsoil outside the territory of a Party, provided that such Party has the right to exploit those waters, seabed or marine subsoil in accordance with international law;
(g) Goods such as fish, crustaceans, molluscs and other forms of marine life captured from the territory of a Party by fishing vessels, including leased or chartered ones, provided that they are registered and flying the flag of such Party;
(h) Goods obtained or produced on board of factory ships, including leased or chartered ones, provided they are registered in a Party and flying the flag of such Party, exclusively on the basis of the goods referred to in sub-paragraph (g);
(i) Waste and scrap derived from: