Article 2.13. Risk Management
1. Each Party shall adopt or maintain risk management or risk management systems that enable its customs authority to concentrate its inspection activities on higher-risk operations, and which simplify risk operations, and that simplify clearance and movement in low-risk operations, respecting the confidentiality of information obtained through these activities.
2. The customs administrations of each Party shall apply a selective control for the clearance of goods, based on release of goods, based on risk analysis criteria, using, among others, non-intrusive means of inspection and tools incorporating modern technologies, with the aim of reducing physical the purpose of reducing the physical inspection of goods entering its territory.
3. The Parties shall adopt cooperation programs to strengthen their respective risk management or administration management systems based on best practices established between their customs authorities. customs authorities.
4. This Article shall apply, to the extent possible, to procedures administered by other border agencies. This Article shall apply, to the extent possible, to procedures administered by other border agencies.
Article 2.14. Perishable Goods
1. In order to prevent avoidable loss or deterioration of perishable goods, and provided that all regulatory requirements have been complied with, each Party shall provide that the release of perishable goods shall be carried out:
(a) in the shortest time possible under normal circumstances, and.
(b) outside the working hours of the customs authority and other competent authorities in exceptional circumstances where this is appropriate.
2. Each Party shall give appropriate priority to perishable goods in scheduling and conducting the required examinations.
3. Each Party shall provide adequate facilities for the storage of perishable goods pending clearance or allow an importer to arrange for such storage.
4. Each Party may require that the storage facilities provided by the importer have been approved or designated by its competent authorities.
5. The movement of goods to such storage facilities, including authorizations for the operator to move the goods, may, where required, be subject to the approval of the competent authorities.
6. Where feasible and consistent with its legislation, and at the request of the importer, each Party shall provide for the necessary procedures for clearance to take place at such storage facilities.
Article 2.15. Cooperation
1. The Parties shall, in accordance with their laws and available resources, cooperate on customs and other trade-related matters.
2. Cooperation may include, in particular:
(a) the exchange of information on customs and other trade-related legislation, their application, and customs and administrative procedures, especially in the following areas:
(i) simplification and modernization of customs and administrative procedures;
(ii) international instruments and standards applicable in the customs and trade area;
(iii) free movement of goods and regional integration;
(iv) facilitation of transit and transshipment movements;
(v) inter-institutional coordination at borders;
(vi) relations with traders and other stakeholders;
(vii) supply chain security and risk management; and
(viii) use of information technology, data and documentation requirements, and single window systems, including work towards their future interoperability;
(b) working together on customs-related aspects of securing and facilitating the international trade supply chain in accordance with the SAFE Framework of Standards;
(c) the development of joint initiatives related to import and export procedures, including technical assistance, capacity building and measures aimed at providing effective service to trade operators and other stakeholders;
(d) the exchange of best practices in customs valuation; and
(e) the promotion of cooperation between customs authorities and other government authorities or agencies in connection with AEO programs.
3. For purposes of cooperation on the subjects of this Chapter, the Parties shall encourage direct dialogue between their respective competent authorities and, where appropriate, between their National Trade Facilitation Committees.
Article 2.16. Contact Points
1. The Parties designate Contact Points responsible for following up on matters relating to the implementation of this Chapter. implementation of this Chapter. Each Party shall promptly notify the other Party of any changes to its Points of Contact, as well as the details of the officials of the other Party. any changes to its Points of Contact, as well as the details of the relevant officials.
2. For purposes of this Article, the Contact Points are:
(a) in the case of Brazil, the Divisão de Acesso a Mercados of the Ministério de Relações Exteriores, or its successor, and
(b) in the case of Chile, the Dirección de Asuntos Económicos Bilaterales de la Dirección General de Relaciones Económicas Dirección General de Relaciones Económicas Internacionales, or its successor.
3. The responsibilities of the Contact Points shall include:
(a) facilitating discussions, requests and the timely exchange of information;
(b) consulting and, as appropriate, coordinating with the competent governmental authorities in their (b) consulting and, as appropriate, coordinating with the competent governmental authorities in their territory on matters related to this Chapter; and
(c) carry out such additional responsibilities as the Parties may agree.
Chapter 3. GOOD REGULATORY PRACTICES
Article 3.1. Definitions
For the purposes of this Chapter:
regulatory impact analysis is the systematic process of analyzing and determining the impact of regulatory measures, based on the definition of a problem. This analysis is a fundamental public policy tool for evidence-based decision making, allowing the presentation of alternatives so that the regulatory authority can choose the option it deems appropriate to solve the problem and maximize social welfare;
good regulatory practices refers to the use of tools in the process of planning, drafting, adoption, implementation, review and follow-up of regulatory measures;
public consultation is the participatory mechanism, of a consultative and non-binding nature, by means of which the State, during a reasonable period of time, collects data and opinions from society in relation to a regulatory measure project; and
regulatory measures refer to measures of general application determined in accordance with Article 3.3, related to any matter covered by this Agreement, adopted by the regulatory authorities, and whose observance is mandatory.
Article 3.2. General Objective
The general objective of this Chapter is to strengthen and encourage the adoption of good regulatory practices, in order to promote the establishment of a regulatory environment that is transparent and with predictable procedures and steps for both citizens and economic operators.
Article 3.3. Scope of Application
Each Party shall, in accordance with its law and no later than one year after the entry into force of this Agreement, determine and make publicly available the regulatory measures to which the provisions of this Chapter shall apply. In making such determination, each Party shall consider achieving meaningful coverage.
Article 3.4. General Provisions
1. The Parties reaffirm their commitment to the adoption of good regulatory practices in order to facilitate trade in goods and services, as well as the flow of investment between them.
2. The provisions of this Chapter shall not affect the right of the Parties to:
(a) adopt, maintain or establish such regulatory measures as they deem appropriate, in accordance with their respective regulatory and administrative procedures and other internationally agreed commitments, with a view to achieving legitimate public policy objectives; or
(b) identify their regulatory priorities in the area and at the levels of government they consider appropriate.
Article 3.5. Establishment of Coordination Processes or Mechanisms
1. The Parties recognize that good regulatory practices can be fostered through effective interagency coordination, such that each Party:
(a) promote the creation and strengthening of domestic mechanisms that facilitate effective interagency coordination;
(b) shall seek to develop internal processes within each competent body for the development and review of regulatory measures aimed at promoting good regulatory practices; and
(c) may establish or maintain coordination processes at the national or central level.
2. The Parties recognize that the processes referred to in paragraph 1 may vary according to their respective circumstances, including differences in political and institutional structures. Nevertheless, the Parties should seek to:
(a) encourage that, at the stage of developing draft and proposed regulatory measures, international regulatory best practices, including those set out in Article 3.6, be taken into consideration;
(b) strengthen coordination and intensify consultations among national governmental institutions to identify possible duplications and avoid the creation of inconsistent regulatory measures;
(c) promote good regulatory practice policies on a systematic basis; and
(d) publicly report any proposals for systemic regulatory improvement actions.
Article 3.6. Implementation of Good Regulatory Practices
1. Each Party shall encourage its respective competent regulatory authorities to submit drafts and proposed amendments to regulatory measures for public consultation, for a reasonable period of time, to allow interested parties to comment.
2. Each Party should encourage its competent regulatory authorities to conduct, in accordance with its national legislation, a regulatory impact analysis (RIA) prior to the adoption and proposed modification of regulatory measures that have a significant economic impact, or, where appropriate, another criterion established by that Party.
3. Recognizing that institutional, social, cultural and legal differences may result in specific regulatory approaches, regulatory impact assessments conducted should, inter alia:
(a) identify the problem to be solved, the actors or groups affected, the legal basis for the proposed action, existing international references, and the objectives to be achieved;
(b) describe the feasible alternatives to address the identified problem, including the no action option, and state their possible impacts;
(c) compare the alternatives proposed, indicating, with justification, the solution or combination of solutions considered most appropriate to achieve the objectives pursued;
(d) be based on the best available scientific, technical, economic or other relevant information available to the respective regulatory authorities within the framework of their competencies, mandate, capacity and resources; and
(e) describe the strategy for the implementation of the suggested solution, including forms of monitoring and enforcement where appropriate, as well as the need for modification or repeal of existing regulatory measures.
4. Each Party should encourage its competent regulatory authorities, when developing regulatory measures, to take into consideration international and foreign references, to the extent appropriate and consistent with domestic law.
5. Each Party should ensure that new regulatory measures are clearly written, concise, organized and easily understood, recognizing the possibility of involving technical issues that require specialized knowledge for their correct understanding and application.
6. Each Party shall endeavor to ensure that its competent regulatory authorities, in accordance with its national legislation, facilitate public access to information on draft and proposed regulatory measures and make such information available on the Internet.
7. Each Party shall seek to maintain or establish domestic procedures for the review of existing regulatory measures, as often as it considers appropriate, to determine whether they should be modified, expanded, simplified, or repealed, with the objective of making its regulatory regime more effective.
Article 3.7. Cooperation
1. The Parties shall cooperate in order to properly implement this Chapter and to maximize the benefits derived from it. Cooperative activities shall take into account the needs of each Party and may include:
(a) information exchange, dialogues, bilateral meetings or meetings between the Parties and stakeholders, including MSMEs;
(b) training programs, seminars and other technical assistance initiatives;
(c) strengthening cooperation and other relevant activities between regulatory authorities;
(d) exchange of data, information and practices related to the development of new regulatory measures, including the conduct of public consultations;
(e) exchange of data, information, methodologies and practices of regulatory impact analysis, with estimation of potential costs and benefits of the regulatory measure, as well as of the implementation plan of the project or proposal;
(f) exchange of methodologies and practices related to the ex post review of regulatory measures; and
(g) exchange of experiences on the management of existing regulatory measures.
2. The Parties recognize that regulatory cooperation depends on a commitment that national regulatory measures are developed and made available in a transparent manner.
Article 3.8. Administration of the Chapter
1. The Parties shall establish focal points, who shall be responsible for following up on matters relating to the implementation of this Chapter.
2. The focal points may meet semi-annually, in person or by any other agreed technological means, and shall prepare annual reports of their activities, unless otherwise agreed by the Parties.
3. The Parties shall, every three (3) years from the entry into force of this Agreement, consider the need for a review of this Chapter, in light of milestones in the area of good regulatory practices at the international level and the experiences accumulated by the Parties.
Article 3.9. Implementation Reports
1. Each Party shall, for purposes of transparency and cooperation, two (2) years after the entry into force of this Agreement and, successively, every three (3) years, send a report on the implementation of the Chapter, through its focal point.
2. In its first report, each Party shall describe the actions implemented and those planned, including those to:
(a) establish internal processes and mechanisms to facilitate interagency coordination, in accordance with Article 3.5;
(b) encourage their competent regulatory authorities to conduct regulatory impact assessments, in accordance with Articles 3.6.2 and 3.6.3;
(c) ensure that draft or proposed regulatory measures are accessible, in accordance with Articles 3.6.5 and 3.6.6; and
(d) review regulatory measures, in accordance with Article 3.6.7.
3. In successive reports, each Party shall describe the actions taken since the previous report, as well as those it plans to take, to implement this Chapter.
4. For the implementation of this Chapter, the Parties shall review the implementation reports referred to in this Article. During this review, the Parties may discuss and ask questions about specific aspects of such reports.
Article 3.10. Relationship with other Chapters
In the event of any inconsistency between this Chapter and another Chapter of this Agreement, the other Chapter shall prevail to the extent of the inconsistency.
Article 3.11. Settlement of Disputes
Neither Party may have recourse to the dispute settlement mechanism provided for in Chapter 22 (Dispute Settlement) with respect to any matter arising under this Chapter.
Chapter 4. SANITARY AND PHYTOSANITARY MEASURES
Article 4.1. Incorporation of the SPS Agreement
1. The Agreement on the Application of Sanitary and Phytosanitary Measures of the World Trade Organization (hereinafter referred to as the "SPS Agreement") is incorporated into and made part of this Chapter, mutatis mutandis.
2. The Parties stress the importance of implementing the Decisions adopted by consensus within the framework of the WTO Committee on Sanitary and Phytosanitary Measures (hereinafter referred to as the "WTO SPS Committee").
Article 4.2. Objectives
The objectives of this Chapter are:
(a) to protect human, animal and plant health and life in the territory of each Party, while facilitating trade between the Parties;
(b) to ensure that the Parties' sanitary and phytosanitary measures do not create unjustified barriers to trade;
(c) to promote the implementation of the SPS Agreement and the standards, guidelines and recommendations developed by the international reference organizations identified by the SPS Agreement: the Codex Alimentarius Commission (CODEX), the World Organization for Animal Health ("OIE") and the International Plant Protection Convention (IPPC); and
(d) provide the means to improve communication, cooperation and resolve any SPS difficulties arising from the implementation of this Chapter.
Article 4.3. Scope of Application
This Chapter shall apply to all sanitary and phytosanitary measures of the Parties, pursuant to the SPS Agreement, that may, directly or indirectly, affect trade in goods between the Parties.
Article 4.4. Establishment of Import Requirements
The importing Party undertakes to establish and report, without undue delay, the sanitary and phytosanitary requirements for the products identified by the exporting Party.
Article 4.5. Risk Analysis
1. Where risk analysis is necessary, it shall be conducted taking into account the risk analysis techniques adopted within the framework of the international reference organizations of the SPS Agreement.
2. The exporting Party shall provide the importing Party with all information necessary to conduct a risk analysis in accordance with the provisions of the SPS Agreement and its international reference organizations.
3. Any reassessment of risk, in situations where there is regular and fluid trade in goods between the Parties, shall not be a reason to interrupt trade in such goods, except when a sanitary or phytosanitary emergency situation is in progress.
4. The Parties may establish, by mutual agreement in the SPS Committee referred to in Article 4.14, specific procedures and deadlines for carrying out the risk analysis based on the standards, guidelines and recommendations approved by the international reference organizations of the SPS Agreement.
5. The results of the risk analysis that may affect trade between the Parties shall be reported in writing, with the scientific and technical reasons for the decision.
Article 4.6. Equivalence and Qualification
1. Equivalence arrangements between the Parties shall be established in accordance with the Decisions adopted by the SPS Committee of the WTO and the standards, guidelines and recommendations adopted by the international reference organizations of the SPS Agreement.
2. A Party may request an equivalence determination from the other Party for any sanitary or phytosanitary measure or group of sanitary or phytosanitary measures for a product or group of products.
3. The Parties shall initiate steps towards the process of recognition of equivalence of their sanitary and phytosanitary measures and their respective control and approval procedures.
4. The exporting Party shall provide appropriate scientifically based and technical information, with a view to objectively demonstrate that its sanitary and phytosanitary measure achieves the appropriate level of protection defined by the importing Party.
5. If the evaluation does not result in the recognition of equivalence, the importing Party shall inform in writing the scientific and technical reasons for its determination.
6. At the request of the exporting Party, in the event that a sanitary or phytosanitary measure applied by the importing Party may affect trade, the importing Party shall examine whether, exceptionally, an alternative sanitary or phytosanitary measure ensures its appropriate level of protection.
7. At the request of the exporting Party, the importing Party shall approve the list of exporting plants, without prior individual inspection of such plants, upon delivery of guarantees demonstrating compliance with the sanitary and safety requirements established by the importing Party. This procedure is conditioned to the process of recognition of equivalence of their sanitary measures, with a view to facilitate trade between the Parties based on the knowledge of their sanitary control and verification systems. The above, without prejudice to Article 4.8.
8. In the event of refusals to authorize establishments for export, the importing Party shall inform the exporting Party of the reasons that justified its decision in accordance with the SPS Agreement. If such justification is not received or is considered unsatisfactory, the exporting Party may request consultations within the framework of the SPS Committee, through the Competent Authorities mentioned in Annex I.
Article 4.7. Control, Inspection and Approval Procedures
1. The application of control, inspection and approval procedures shall not become disguised restrictions on trade between the Parties and shall be carried out in accordance with the SPS Agreement and the international standards, guidelines and recommendations set by the SPS Agreement reference bodies.
2. The Parties shall agree, where possible, on the simplification of controls and verifications, as well as the frequency of inspections based on the risks involved and the international standards, guidelines and recommendations adopted by the SPS Agreement reference bodies.
Article 4.8. Audit Systems
1. The importing Party may conduct on-site audits of the exporting Party's inspection systems.
2. If an audit is conducted to verify compliance with sanitary and phytosanitary requirements, it shall comply with the requirements set forth in the SPS Agreement and, in particular, Annex C thereof. Specifically, the audit shall be limited exclusively to the verification of what is technically necessary, without causing undue delay and unnecessary costs.
3. Each Party, within the framework of this Chapter, has the right to receive information on the control system of the other Party and the results of the controls carried out under such system.
4. The deadlines for the submission of reports on the audit by the importing Party, the submission of comments by the exporting Party, and the publication of the final report by the importing Party shall be agreed by the SPS Committee as set out in Article 4.14.4(c).
Article 4.9. Recognition of Sanitary and Phytosanitary Status
1. The exporting Party shall be responsible for objectively demonstrating to the importing Party the country, area or zone's pest or disease free or low pest prevalence status.
2. In such cases, the pest or disease free or low pest prevalence area or zone shall be subject to effective surveillance, disease or pest control or eradication measures and other requirements, in accordance with relevant international standards.
3. The Parties may establish, by mutual agreement in the SPS Committee, the procedures and deadlines for the recognition of a pest or disease free or low prevalence area or zone, based on the standards, guidelines and recommendations adopted by the international reference organizations of the SPS Agreement.
4. The Parties undertake to recognize their respective disease free areas or zones recognized by the OIE, expeditiously and without undue delay.
5. If an on-site visit by the importing Party to the exporting Party is necessary for the verification of compliance with sanitary and phytosanitary requirements or for the recognition of free areas or zones or areas of low prevalence, the visit shall comply with the rules provided for in the SPS Agreement and, in particular, Annex C thereof. In particular, the visit shall be limited exclusively to verifying in situ what is necessary from a technical point of view, without extending beyond what is necessary or generating unnecessary costs.