Title
Free Trade Agreement between the Republic of Chile and the Federative Republic of Brazil
Preamble
The Government of the Republic of Chile and the Government of the Federative Republic of Brazil (hereinafter referred to as the "Parties"), decided to:
DEEPEN the special bonds of friendship and cooperation;
EXPAND trade, promote greater international cooperation and strengthen economic relations among their peoples for mutual benefit, in light of the Treaty of Montevideo of 1980 and of Resolution No. 2 of LAFTA;
REAFFIRM your commitment to democratic principles, the rule of law, human rights and fundamental freedoms;
CREATE a more open, safe and predictable market for reciprocal trade, in order to facilitate the planning of business activities;
AVOID distortions and non-tariff trade barriers and other restrictive measures in reciprocal trade;
PUTTING INTO PRACTICE THEIR RIGHTS AND OBLIGATIONS ARISING FROM THE AGREEMENT ON WTO, as well as other multilateral and bilateral cooperation instruments;
STIMULATE and support bilateral investments, opening new integration initiatives between both countries;
KEEP their respective financial systems solid and stable;
ESTABLISH a common framework of principles and rules for their bilateral trade in matters of public contracting, with a view to its expansion under conditions of transparency and as a means of promote economic growth;
PROMOTE the incorporation of the gender perspective in international trade, encouraging equality of rights, treatment and opportunities between men and women in business, industry and the world of work, favoring inclusive economic growth for societies of both countries;
FACILITATE the contacts between the companies and the private sectors of the Parties;
STRENGTHEN the competitiveness of their companies in global markets; and seek a greater insertion in global and regional value chains;
PROTECT and enforce labor rights, improve the living standards of the workers, and promote the cooperation and capacity of the Parties in labor matters, and
PROMOTE the protection and preservation of the environment and the contribution of trade to sustainable development,
HAVE AGREED to conclude this Free Trade Agreement between the Republic of Chile and the Federative Republic of Brazil, in accordance with the following:
Body
Chapter 1. Initial Provisions and General Definitions
Article 1.1. Initial Provisions
1. The Parties, in accordance with the Treaty of Montevideo of 1980, Resolution No. 2 of LAFTA and Article V of the GATS, decide to deepen and extend the bilateral legal framework of the expanded economic space established by ACE No. 35, in accordance with the provisions of this agreement.
2. Each Party confirms its rights and obligations with respect to the other Party in relation to with the existing international agreements in which both Parties are parties, including the Agreement on the WTO. In this regard, each Party:
(a) Grant the tariff preferences contained in Article 2 of Title II (Commercial Release Program) of ACE No. 35, and
(b) Apply the regime of origin provided by Article 13, paragraph 1, of Title III (Régime of Origin), and contained in Annex 13 and Appendices of ACE No. 35, as its modifications.
3. If a Party considers that a provision of this Agreement is incompatible with a provision of another agreement to which both Parties are parties, upon request, the Parties shall consult in order to reach a mutually satisfactory solution. This paragraph applies without prejudice to the rights and obligations of the Parties under Chapter 22 (Settlement of Disputes).
Article 1.2. General Definitions
For purposes of this Agreement, unless otherwise specified in this Agreement:
ACE No. 35 means Mercosur Economic Complementation Agreement - Chile No. 35;
Agreement means the Free Trade Agreement between the Republic of Chile and the Republic Federative of Brazil;
Agreement on the WTO means the Marrakesh Agreement which establishes the World Trade Organization;
Agreement on TRIPS means the Agreement on Trade-Related Aspects of Intellectual Property Rights, contained in Annex 1 C of the Agreement that establishes the World Trade Organization;
GATS means the General Agreement on Trade in Services contained in Annex 1B of the WTO Agreement;
LAIA means the Latin American Integration Association;
LAFTA stands for Latin American Free Trade Association;
Goods means a commodity or product;
Administrative Commission means the Administrative Commission of the Agreement established in accordance with Article 21.1 (Administrative Commission);
Days means calendar days, including weekends and holidays;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 contained in Annex 1A of the WTO Agreement;
Measure includes any law, regulation, procedure, requirement or practice;
MSMEs means micro, small and medium enterprises;
National means a natural person who has the nationality of a Party:
(a) In the case of the Federative Republic of Brazil, as defined in Article 12 of the Constitution of the Federative Republic of Brazil, and
(b) In the case of the Republic of Chile, a Chilean as defined in Article 10 of the Political Constitution of the Republic of Chile;
OECD means Organization for Economic Cooperation and Development;
WTO means the World Trade Organization;
Person means a natural person or a company;
Person of a Party means a national or a company of a Party;
Harmonized System (HS) means the Harmonized System of Designation and Coding of Merchandise, including its General Interpretation Rules, Section Notes and Notes Chapter, in the form in which the Parties have adopted and applied it in their respective legislations, and territory means:
(a) In the case of the Federative Republic of Brazil, the territory, including its terrestrial and aerial spaces, the exclusive economic zone, the territorial sea, the continental shelf, the soil and the subsoil, within which Brazil exercises its sovereign or jurisdictional rights, in accordance with international law and with its internal legislation, and
(b) In the case of the Republic of Chile, the terrestrial, maritime and air space under its sovereignty, and the exclusive economic zone and the continental shelf over the which exercises sovereign rights and jurisdiction under international law and its internal legislation.
Chapter 2. TRADE FACILITATION
Article 2.1. Objectives
The objectives of this Chapter are to contribute to the efforts of the Parties to expedite and simplify the simplify the procedures associated with import, export, and transit operations of goods, through the development and of goods, through the development and implementation of measures aimed at facilitating the free cross-border movement and cross-border movement and free circulation of goods, promoting legitimate and secure trade; together with and secure trade, as well as stimulating cooperation and dialogue between the Parties in matters related to trade facilitation. related to trade facilitation.
Article 2.2. Procedures Related to Import, Export and Transit
Each Party shall ensure that its procedures relating to the importation, exportation, and transit of goods are and transit of goods are applied in a predictable, uniform, and transparent manner, and shall employ information technology to make its controls more efficient and facilitate legitimate trade.
Article 2.3. Transparency
Each Party shall publish, in a non-discriminatory and easily accessible manner and, to the extent practicable, by electronic means, information on its possible, by electronic means, general legislation and procedures relating to the import, export, and transit of goods and trade facilitation, as well as changes in such legislation and procedures, on a non-discriminatory and changes in such legislation and procedures, in a manner consistent with the domestic legislation of the Parties. the Parties. This includes information on:
(a) import, export, and transit procedures, including procedures at ports, airports and other (a) import, export and transit procedures, including procedures at ports, airports and other points of entry; the working hours of the competent (a) import, export and transit procedures, including procedures at ports, airports and other points of entry; the working hours of the competent authorities; and forms and documents required;
(b) the rates of duties applied and taxes of any kind levied on the importation or exportation, or on the (b) the rates of duties and taxes of any kind levied on or in connection with importation or exportation;
(c) duties and charges levied by or on behalf of governmental bodies on the importation, exportation or exportation of goods, or in connection therewith; and on or in connection with importation, exportation or transit;
(d) rules for the classification or valuation of goods for customs purposes;
(e) laws, regulations and administrative provisions of general application relating to rules of origin; (f) rules for the classification or valuation of goods for customs purposes; and (e) laws, regulations and administrative provisions of general application relating to rules of origin;
(f) restrictions or prohibitions on importation, exportation or transit;
(g) provisions on penalties for infringement of import, export or transit formalities;
(h) appeal or review procedures;
(i) agreements or parts of agreements with any country or countries relating to the importation, exportation or transit; (j) the provisions of the Agreement not yet in force (i) agreements or parts of agreements with any country or countries relating to import, export or transit
(j) procedures relating to the administration of tariff quotas;
(k) contact points for information inquiries; and
(l) other relevant information of an administrative nature related to the preceding subparagraphs. preceding subparagraphs.
2. Each Party shall, to the extent possible, provide opportunities and an appropriate time period for interested persons involved in foreign trade to comment on proposals for the introduction or modification of rulings. proposals for the introduction or modification of rulings of general application relating to import, export and transit procedures. import, export and transit procedures, prior to their entry into force. entry into force of the same. In no case shall these comments be binding.
3. Each Party shall ensure, to the extent practicable and in a manner consistent with its legal system, the system, that new or modified legislation, procedures, duties, fees or charges relating to the importation or or modified legislation, procedures, duties, fees or charges relating to import, export and transit, or otherwise information on them is made available to the public as soon as practicable before their entry into force. entry into force.
4. Excluded from paragraphs 2 and 3 are changes in the rates of duty or tariff rates, changes in the rates of duty or tariffs, changes in the rates of duty or tariffs, changes in the rates of duty, changes in the rates of tariff rates, measures having the effect of relief, measures the effectiveness of which would be impaired as a result of their measures whose effectiveness would be impaired as a result of compliance with paragraphs 2 and 3, measures that are applied in urgent measures applied in urgent circumstances, or minor changes to its legal system.
5. Each Party shall, to the extent possible and as appropriate, make available and update through the the Internet the following:
(a) a description of its import, export and transit procedures, (a) a description of its import, export and transit procedures, including appeal or review procedures, including the practical (a) a description of its import, export and transit procedures, including appeal or review procedures, including practical arrangements for import, export and transit;
(b) the forms and documents required for import, export, and transit; and (b) the forms and documents required for import, export and transit; and
(c) the contact details of its enquiry point(s).
6. Each Party shall establish or maintain enquiry points to respond to reasonable requests for information on customs matters. reasonable requests for information on customs and other matters relating to trade in goods, which may be trade in goods, which may be contacted, to the extent possible in Spanish or Portuguese, via the Internet. Responses to inquiries shall, to the extent possible, be in the same language as the language of the inquiry. The Parties shall not require the payment of fees to respond to requests for information.
7. Each Party shall establish or maintain mechanisms for consultation with business operators and other interested parties on the development and implementation of trade facilitation measures, paying particular attention to the needs of MSMEs.
Article 2.4. Advance Rulings
1. Each Party shall, prior to the importation of goods into its territory, issue an advance ruling upon the written request of an importer in its territory or an exporter or producer in the territory of the other Party containing all necessary information.
2. In the case of an exporter or producer in the territory of the other Party, such exporter or producer shall request the advance ruling in accordance with the internal administrative rules and procedures of the territory of the Party to whom the advance ruling of the territory of the Party to whom the request is addressed.
3. Advance rulings shall be issued with respect to:
(a) the tariff classification of the good;
(b) the application of customs valuation criteria for a particular case, in accordance with the provisions contained in the Party to whom the request is addressed. (b) the application of customs valuation criteria for a particular case, in accordance with the provisions contained in the Agreement on the Application of Article VII of the General Agreement on Tariffs and Trade. Application of Article VII of the General Agreement on Tariffs and Trade of 1994; (b) the application of customs valuation Trade 1994;
(c) the application of drawbacks, deferrals, or other exemptions from the payment of customs duties (c) the application of drawbacks, deferrals or other exemptions from the payment of customs duties;
(d) the originating status of a good; and
(e) such other matters as the Parties may agree.
4. Each Party shall issue an advance ruling within a reasonable and specified period of time, provided that the applicant has submitted all information that the Party requires, including, if the Party so requires, a sample of the good for which an advance ruling is being requested. advance ruling is being requested.
5. The advance ruling shall be valid as of the date of its issuance or such later date specified therein, and shall be valid as of the date of issuance of the advance ruling. specified therein, and shall remain in effect as long as the facts or circumstances on which it is based have not changed. circumstances on which it is based have not changed.
6. The Party issuing the advance ruling may modify or revoke it, ex officio or at the request of the requesting Party, as the case may be. The Party issuing the advance ruling may modify or revoke it, ex officio or at the request of the party that requested it, as appropriate, in the following cases:
(a) when the advance ruling was based on any error;
(b) when the circumstances or facts on which it was based have changed; or
(c) to comply with an administrative or judicial decision, or to conform to a change in the law of the Party. (c) to comply with an administrative or judicial decision, or to conform to a change in the law of the Party that issued the ruling.
7. Neither Party shall retroactively apply a revocation or modification to the detriment of the applicant, unless the determination was based on incomplete, inaccurate or false information provided by the applicant.
8. Subject to confidentiality requirements under its law, each Party shall make its advance rulings available to the public, including on the Internet.
9. The Party issuing the advance ruling may apply appropriate sanctions or measures, including civil, criminal and including civil, criminal and administrative actions, if the requester provided false information or omitted facts or false information or omitted relevant facts or circumstances relating to the advance ruling, or failed to act or failed to act in accordance with the terms and conditions of such advance ruling.
Article 2.5. Appeal or Review Procedures
Each Party shall ensure, with respect to its administrative acts in customs matters, that any person subject to its person subject to such acts in its territory has access to:
(a) an administrative review before an administrative authority independent or (a) administrative review before an administrative authority independent of or superior to the official or office that issued such administrative act, and/or
(b) judicial review of administrative acts.
Article 2.6. Clearance of Goods
1. Each Party shall adopt or maintain simplified customs procedures for the efficient clearance of goods, with the Each Party shall adopt or maintain simplified customs procedures for the efficient clearance of goods in order to facilitate legitimate trade between the Parties.
2. Pursuant to paragraph 1, each Party shall adopt or maintain procedures that:
(a) provide for clearance to be made within a period no longer than that required to ensure compliance with its customs regulations. Each Party shall continue to work to reduce clearance times;
(b) allow, to the extent permitted by its legislation and provided that all regulatory requirements have been met, goods to be cleared at the point of arrival, without temporary transfer to warehouses or other premises.
3. Each Party shall ensure, to the extent practicable, that its competent authorities in the control of import and export control of import and export operations of the goods coordinate, inter alia, requirements for information and documents, establishing a single time for physical verification, without prejudice to the physical verification, without prejudice to the controls that may apply in the case of post-clearance audits.
4. The Parties undertake, as far as possible, to calculate and publish the average time required for the clearance of goods. periodically and in a uniform manner, using tools such as the Guide for Measuring the Time Required for Clearance of Goods adopted by the Standing Technical Committee of the World Customs Organization (hereinafter referred to as "WCO").
Article 2.7. Temporary Admission
1. Each Party shall permit the temporary admission of goods as provided for in its laws and regulations.
2. For purposes of this Article, temporary admission shall be understood to mean the regime under which goods are which goods are brought into the territory of a Party for a specified purpose and for a specified period of time, with the the obligation to be re-exported in the same state, except for depreciation due to normal use, without payment of the customs duties, taxes and other charges that would be levied on the taxes and other charges that would be levied on its definitive importation.
3. Each Party, in accordance with the commitments and obligations assumed in the Istanbul Convention on Temporary Importation of Goods, for the temporary admission referred to in paragraph 2 and regardless of the origin of the goods, shall accept ATA Carnets issued in the other Party, endorsed there and guaranteed by an association belonging to the international guarantee chain, certified by the competent authorities and valid in the customs territory of the importing Party.
Article 2.8. Automation
Each Party shall endeavor to use information technology to expedite import, export, and transit procedures. procedures for the import, export, and transit of goods. To this end, the Parties shall:
(a) endeavor to use international standards;
(b) endeavor to make electronic systems accessible to users;
(c) provide for the electronic transmission and processing of information and data prior to the arrival of the shipment, in order to (c) provide for the electronic transmission and processing of information and data prior to the arrival of the shipment, in order to allow for the clearance of goods upon arrival once all (c) provide for the electronic transmission and processing of information and data prior to the arrival of the consignment to enable the clearance of goods upon arrival once all regulatory requirements have been met;
(d) adopt procedures that allow for the option of electronic payment of duties, taxes, fees and charges as (d) adopt procedures that allow for the option of electronic payment of duties, taxes, fees and charges determined by the Customs administration (d) adopt procedures that allow for the option of electronic payment of duties, taxes, fees and charges as determined by the customs administration that are due at the time of importation and exportation;
(e) employ, to the extent possible, electronic or automated systems for risk analysis and targeting. (e) employ, to the extent possible, electronic or automated systems for risk analysis and targeting
(f) advance the implementation of the Standard for the Computerization of the International Cargo Manifest/Declaration (f) make progress in the implementation of the Standard for the Computerization of the International Cargo Manifest/Customs Transit Declaration and in the Transit Goods Transit Operation between both countries under the Agreement on International under the Agreement on International Land Transport 1990 (hereinafter referred to as "ATIT"). hereinafter referred to as "ATIT");
(g) endeavor to ensure that the entities responsible for the issuance of the permits for international (g) ensure that the entities responsible for the issuance of international cargo transport permits issued under the ATIT make progress in the integration, in order to facilitate the exchange of the respective permits; (g) endeavor to ensure that the entities permits;
(h) provide for the processing of customs import and export operations through electronic documents and the possibility of digitalization of documents supporting customs declarations, as well as the use of validation mechanisms, previously agreed upon by the customs administration of both Parties, for the electronic exchange of information in a secure manner;
(i) implement cooperation and information exchange, data consultation and mutual assistance between the customs administrations of the Parties, in accordance with the Sixty-second Additional Protocol to ACE No. 35 and its subsequent amendments;
(j) work to develop a set of common data elements, in accordance with the WCO Customs Data Model and its related recommendations and guidelines, to facilitate the electronic exchange of data between customs authorities; and
(k) work towards the interoperability of the electronic systems of the Parties' customs administrations in order to facilitate the exchange of international trade data, ensuring the same levels of confidentiality and data protection as those provided for in each Party's legal system.
Article 2.9. Authorized Economic Operator
1. The customs administrations of the Parties shall promote the implementation and strengthening of Authorized Economic Operator (hereinafter referred to as "AEO") programs, in accordance with the WCO Framework of Standards to Secure and Facilitate Global Trade (hereinafter referred to as the "SAFE Framework of Standards").
2. The customs administrations of the Parties undertake to seek mutual recognition of their AEO programs, with the objective of strengthening the security of the international trade supply chain and contributing significantly to the facilitation and control of trade operations of goods moving between the two Parties. To this end, the Parties shall exchange information on the current status of their respective AEO programs, in order to evaluate the development of an action plan with a view to reaching a mutual recognition agreement.
Article 2.10. Use and Exchange of Documents In Electronic Format
1. The Parties shall endeavor to:
(a) use documents in electronic format for exports and imports;
(b) adopt relevant international standards, where they exist, for the form, issuance and receipt of documents in electronic form; and
(c) promote the mutual recognition of documents in electronic format required for imports or exports issued by for imports or exports issued by the authorities of the other Party.
2. The Parties undertake to implement digital certification of origin under the terms of the provisions of LAIA Resolution No. 386 of 2011, or under such terms as the Parties may agree, and to promote the replacement of paper certificates of origin by certificates of origin in electronic format.
3. The Parties shall promote, based on international standards, the exchange of electronic phytosanitary certificates in bilateral trade transactions.
Article 2.11. Acceptance of Copies
1. Each Party shall endeavor, where appropriate, to accept copies of supporting documents required for import formalities. required for import, export or transit formalities.
2. Where a government agency of a Party already possesses the original of a supporting document, any other agency of that Party may accept copies. any other agency of that Party shall accept, where appropriate, in lieu of the original document, a copy provided by that 2. Where a government agency of a Party already holds the original of a supporting document, any other agency of that Party shall accept, where appropriate, in lieu of the original document, a copy provided by the agency holding the original.
Article 2.12. Foreign Trade Single Window
1. The Parties shall promote the development of their respective Single Windows for Foreign Trade (hereinafter referred to as "Single Windows"). The Parties shall promote the development of their respective Foreign Trade Single Windows (hereinafter referred to as "SWs") for the expediting and facilitation of trade, the authorities and commercial operators involved in foreign trade to use documentation or information for the import and export documentation or information for the import, export and transit of goods through a single point of entry. through a single point of entry, and through which applicants will be notified in a timely manner of the results. the results will be notified to the applicants in a timely manner.
2. The Parties shall promote interoperability between the SWs, in order to exchange information that will information that expedites trade and allows the Parties, inter alia, to verify information on foreign trade operations carried out. foreign trade operations carried out.
3. The implementation and operation of interoperability, where possible, shall be guided by. the following guidelines:
(a) the SWs shall ensure interoperability for the documents and information (a) the SWs shall ensure interoperability for documents and information determined by the Parties;
(b) the interoperability of the SWs shall ensure compliance with the legal requirements of the Parties regarding confidentiality. (b) the interoperability of the SWs shall ensure compliance with the legal requirements of the Parties regarding the confidentiality and protection of the information exchanged exchanged;
(c) the interoperability of the SWs shall ensure the availability of the information in the documents (c) the interoperability of the SWs shall ensure the availability of the information of the documents in accordance with the operating conditions set by the Parties. the Parties may establish;
(d) the SWs shall have computerized schemes that allow the transfer of information electronically of information electronically between the Parties;
(e) the SWs shall be based on the WCO data model, and other international standards as appropriate; and
(f) the interoperability of the SWs shall be implemented gradually.
4. The Parties shall promote the exchange of experiences and cooperation for the implementation and improvement of their systems, making use of international cooperation networks in this area.