Title
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF KOREA AND THE KINGDOM OF CAMBODIA
Preamble
PREAMBLE
The Government of the Republic of Korea ("Korea") and the Government of the Kingdom of Cambodia ("Cambodia") (hereinafter referred to collectively as the "Parties" and individually as a "Party"):
RECOGNIZING their longstanding and strong partnership and the need to strengthen their close economic and trade relations;
CONVINCED that this Agreement will create an expanded and secure market for goods and services and a stable and predictable environment for investment, thus enhancing the competitiveness of their firms in global markets;
SEEKING to establish clear and mutually advantageous rules governing their trade and investment while recognizing the right of the Parties to take measures necessary to achieve legitimate public policy objectives;
COMMITTED to contributing to the harmonious development and expansion of world trade by removing obstacles to trade through the creation of a free trade area;
AFFIRMING their commitment to fostering the development of an open market economy in Asia, and to encouraging the economic integration of Asian economies in order to further the liberalization of trade and investment in the region;
RECOGNIZING the different levels of economic development between the Parties;
DESIRING to promote economic growth, create new employment opportunities, raise living standards and improve public welfare;
RESOLVED to promote transparency and combat corruption as regards all relevant interested parties, including the private sector;
BUILDING on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization and other multilateral, regional, and bilateral agreements to which both Parties are party; and
REAFFIRMING their desire to build upon their commitments under the Framework Agreement on Comprehensive Economic Cooperation among the Governments of the Republic of Korea and the Member Countries of the Association of Southeast Asian Nations as well as other relevant agreements pursuant to the Framework Agreement;
HAVE AGREED as follows:
Body
Chapter ONE. GENERAL PROVISIONS
Article 1.1. General Definitions
For purposes of this Agreement, onless otherwise specified,
Agreement on Agriculture means the Agreement on Agriculture, in Annex 1A to the WTO Agreement;
Anti-Dumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, in Annex 1A to the WTO Agreement;
customs administration means authority that is responsible under the law of each Party for the administration and enforcement of its customs laws and regulations:
(a) for Korea, the Ministry of Economy and Finance, or the Korea Customs Service, or their respective successors; and
(b) for Cambodia, the General Department of Customs and Excise of Cambodia;
customs duties means any customs or import duty and a charge of any kind imposed in connection with the importation of a good, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article II:2 of the GATT 1994, in respect of like, directly competitive, or substitutable goods of a Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
(b) duty imposed pursuant to a Partyâs laws and regulations consistently with Chapter Five (Trade Remedies);
(c) fee or other charge in connection with importation commensurate with the cost of services rendered;
(d) duty imposed pursuant to Article 5 of the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement; or
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(e) premiums offered or collected on an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions or tariff rate quotas;
customs laws and regulations means the statutory and regulatory provisions relating to the importation, exportation, movement, or storage of goods, the administration and enforcement of which are specifically charged to the customs administration, and any regulations made by the customs administration, under its statutory powers;
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, in Annex 1A to the WTO Agreement;
days means calendar days, including weekends and holidays; existing means in effect on the date of entry into force of this Agreement;
GATS means the General Agreement on Trade in Services, in Annex 1B to the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, including its notes and supplementary provisions, which is a part of the WTO Agreement;
goods means any merchandise, product, article, or material;
Harmonized System (HS) means the nomenclature of the Harmonized Commodity Description and Coding System defined in the International Convention on the Harmonized Commodity Description and Coding System, including all legal notes thereto, as in force and as amended from time to time;
Joint Committee means the Korea-Cambodia Free Trade Agreement Joint Committee established under Article 10.1 (Joint Committee);
juridical person means any legal entity duly constituted or otherwise organized under applicable laws and regulations, whether for profit or otherwise, and whether private-owned or government-owned, including any corporation, trust, partnership, joint venture, sole proprietorship, or association;
Korea-ASEAN FTA means the Framework Agreement on Comprehensive Economic Cooperation among the Governments of the Republic of Korea and the Member Countries of the Association of Southeast Asian Nations and other relevant agreements stipulated in paragraph 1 of Article 1.4 of the Framework Agreement;
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Measure means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form;
measures adopted or maintained by a Party means measures adopted or maintained by:
(a) central or local governments and authorities; and
(b) non-governmental bodies in the exercise of power delegated by central or local governments and authorities;
national means:
(a) for Korea, a Korean national within the meaning of the Nationality Act, as amended; and
(b) for Cambodia, any person who is a Khmer citizen within the meaning of the Constitution of the Kingdom of Cambodia and the Royal Kram No. NS/RKM/0618/008, dated 21 June 2018, promulgating the Law on Nationality, or as may be amended;
originating goods means products or materials that qualify as originating under Chapter Three (Rules of Origin);
person means a natural person or a juridical person;
Safeguards Agreement means the Agreement on Safeguards, in Annex 1A to the WTO Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures, in Annex 1A to the WTO Agreement;
technical regulations, standards, and conformity assessment procedures shall have the meanings assigned to those terms in Annex 1 of the Agreement on Technical Barriers to Trade, contained in Annex 1 to the WTO Agreement (hereinafter referred to as the âTBT Agreementâ).
territory means:
(a) for Korea, the land, maritime, and airspace under its sovereignty, and those maritime areas, including the seabed and subsoil adjacent to and beyond the outer limit of the territorial seas over which it exercises sovereign rights or jurisdiction in accordance with international law and its domestic law; and
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(b) for Cambodia, the territory of the Kingdom of Cambodia, as well as those maritime areas, including the seabed and subsoil adjacent to the outer limits of the territorial sea and airspace over which the Kingdom of Cambodia exercises, in accordance with international law, sovereign rights or jurisdiction;
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on 15 April 1994.
Article 1.2. Establishment of a Free Trade Area
The Parties, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish a free trade area in accordance with the provisions of this Agreement.
Article 1.3. ObjectivesThe Objectives of this Agreement Are to:
(a) achieve the substantial liberalization of trade in goods between the Parties, in conformity with Article XXIV of GATT 1994;
(b) achieve the substantial liberalization of trade in services between the Parties, in conformity with Article V of GATS;
(c) | promote competition in their economies, particularly as it relates to economic relations between the Parties;
(d) enhance transparency of trade and investment related measures of the Parties by sharing best regulatory practices and promoting innovation in areas of mutual interest; and
(e) establish a framework for furthering cooperation to expand and enhance the benefits of this Agreement.
Article 1.4. Relations to other Agreements 1. the Parties Reaffirm Their Rights and Obligations Under Existing Bilateral
and multilateral agreements to which both Parties are party, including the WTO Agreement and the Korea-ASEAN FTA.
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2. For greater certainty, this Agreement shall not be construed to derogate from any international legal obligation between the Parties that provides for more favorable treatment of goods, services, investments, or persons than that provided for under this Agreement.
3. Unless otherwise provided in this Agreement, in the event of any inconsistency between this Agreement and any agreement to which both Parties are party, the Parties shall consult with each other with a view to finding a mutually satisfactory solution taking into consideration the general principles of international law.
Article 1.5. Extent of Obligations
Each Party shall, subject to the provisions of this Agreement, ensure the observance of all obligations and commitments under this Agreement by its local governments and authorities, and by non-governmental bodies in the exercise of governmental powers delegated to them by central, and local governments or authorities.
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Chapter CHAPTER TWO TRADE IN GOODS
Section Section a: Common Provisions
Article 2.1. Definitions for Purposes of this Chapter:
commercial samples of negligible value means commercial samples having a value, individually or in the aggregate as shipped, of not more than the amount specified in a Partyâs laws, regulations, or procedures governing temporary admission, or so marked, torn, perforated, or otherwise treated that they are unsuitable for sale or use except as commercial samples;
consular transactions means requirements that goods of a Party intended for export to the territory of the other Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas for commercial invoices, certificates of origin, manifests, shippersâ export declarations, or any other customs documentation required on or in connection with importation;
duty-free means free of customs duty;
import licensing means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party; and
non-tariff measures means policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing quantities traded or prices or both.
Article 2.2. Scope and Coverage2-1
Except as otherwise provided in this Agreement, this Chapter shall apply to trade in goods between the Parties.
Section Section B: National Treatment
Article 2.3. National Treatment
Each Party shall accord national treatment to the goods of the other Party in accordance with Article IM of GATT 1994 including its interpretative notes. To this end, Article II of GATT 1994 and its interpretative notes shall, mutatis mutandis, be incorporated into and form part of this Agreement.
Section Section C: Tariff Reduction or Elimination
Article 2.4. Reduction or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, neither Party shall increase any existing customs duty as specified in its Schedule in Annex 2-A, or adopt any new customs duty, on an originating good.
2. Except as otherwise provided in this Agreement, each Party shall gradually reduce or eliminate its customs duties on originating goods in accordance with its Schedule in Annex 2-A.
3. On the request of either Party, the Parties shall consult to consider accelerating the reduction or elimination of customs duties set out in their Schedules in Annex 2-A. An agreement by the Parties to accelerate the reduction or elimination of a customs duty on a good shall supersede any duty tate or staging category determined pursuant to their Schedules in Annex 2-A for that good when approved by each Party in accordance with its applicable legal procedures.
4. A Party may unilaterally accelerate the reduction or elimination of customs duties set out in its Schedule in Annex 2-A at any time if it so wishes. Such Party shall notify the other Party through a diplomatic note immediately after completion of the internal procedures required for the amendments to
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enter into force.
5. If at any moment a Party reduces its most-favored-nation (hereinafter referred to as âMFNâ) applied rate of customs duty after the entry into force of this Agreement, that duty rate shall apply as regards trade covered by this Agreement if and for as long as it is lower than the customs duty rate calculated in accordance with its Schedule in Annex 2-A.
6. For greater certainty, a Party may:
(a) raise a customs duty to the level established in its Schedule in Annex 2-A following a unilateral reduction or elimination; or
(b) maintain or increase a customs duty as authorized by the Dispute Settlement Body of the WTO.
Article 2.5. Customs Valuation
For purposes of determining the customs value of goods traded between the Parties, the provisions of Article VII of GATT 1994, and the provisions of Part T and the Interpretative Notes of Annex I of the Customs Valuation Agreement shall apply, mutatis mutandis.
Article 2.6. Transposition of Schedules of Tariff Commitments
Each Party shall ensure that the transposition of its Schedule of tariff commitments, undertaken in order to implement Annex 2-A in the nomenclature of the revised HS Code following periodic amendments to the HS Code, is carried out without impairing the tariff commitments set out in
Annex 2-A, and in accordance with the agreed transposition guidelines, which are to be adopted by the Committee on Trade in Goods.
Section Section D: Special Regimes
Article 2.7. Temporary Admission of Goods2-3
1. Each Party shall allow, as provided for in its laws and regulations, goods to be brought into its customs territory conditionally relieved, totally or partially, from payment of import duties and taxes if such goods are brought into its customs territory for a specific purpose, are intended for re-exportation within a specific period, and have not undergone any change except normal depreciation and wastage due to the use made of them.
2. Each Party shall, at the request of the person concerned and for reasons its customs administration considers valid, extend the time limit for duty-free temporary admission provided for in paragraph 1 beyond the period initially fixed.
3. Neither Party shall condition the duty-free temporary admission of a good provided for in paragraph 1, other than to require that the good:
(a) be used solely by or under the personal supervision of a national or resident of the other Party in the exercise of the business activity, trade, profession, or sport of that person;
(b) not be sold or leased while in its territory;
(c) be accompanied by a security or guarantee in an amount no greater than the customs duties, taxes, fees, and charges that would otherwise be owed on entry or final importation, releasable on exportation of the good;
(d) be capable of identification when imported and exported;
(e) be exported on the departure of the person referred to in subparagraph (a), or within such other period related to the
purpose of the temporary admission as the Party may establish, unless extended;
ff) be admitted in no greater quantity than is reasonable for its intended use; and
(g) be otherwise admissible into the Partyâs territory under its laws and regulations.
4. If any condition that a Party imposes under paragraph 3 has not been
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fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the good in addition to any other charges or penalties provided for under its laws and regulations.
5. Each Party shall permit a good temporarily admitted under this Article to be re-exported through a customs port other than that through which it was admitted.
Article 2.8. Duty-free Entry of Commercial Samples of Negligible Value
Each Party shall grant duty-free entry to commercial samples of negligible value imported from the territory of the other Party, regardless of their origin, but may require that the samples be imported solely for the solicitation of orders for goods, or services provided from the territory, subject to its laws and regulations, of the other Party or a non-Party.
Section Section E: Non-Tariff Measures
Article 2.9. Application of Non-Tariff Measures
1. A Party shall not adopt or maintain any non-tariff measure on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except in accordance with its WTO rights and obligations or in accordance with this Agreement.
2. Each Party shall ensure the transparency of its non-tariff measures permitted in paragraph 1 of this Article and shall ensure that any such measures are not prepared, adopted or applied with the view to, or with the effect of, creating unnecessary obstacles to trade between the Parties.
Article 2.10. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, neither Party shall adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined
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for the territory of the other Party, except in accordance with Article XI of GATT 1994 and its interpretative notes, and to this end Article XI of GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
2. Where a Party proposes to adopt an import or export prohibition or restriction on foodstuffs or other products in accordance with paragraph 2 of Article XI of GATT 1994, the Party shall:
(a) make notification in writing to the extent possible before such proposed prohibition or restriction is to take effect; and
(b) provide the other Party with an adequate opportunity for consultation with respect to any matter related to the proposed prohibition or restriction through appropriate mechanisms, which may include subcommittees or working groups established by the Joint Committee.
Article 2.11. Technical Consultations on Non-Tariff Measures
1. A Party may request technical consultations with the other Party (hereinafter referred to as âthe requested Partyâ) on a measure the Party considers to be adversely affecting its trade. The request shall be in writing and shall clearly identify the measure and the concerns as to how the measures adversely affect trade between the Party requesting technical consultations (hereinafter referred to as âthe requesting Partyââ) and the requested Party.
2. Where the measures are covered by another Chapter, its Chapter-specific consultation mechanism shall be used, unless otherwise agreed between the Parties.
3. Except as provided in Paragraph 2, the requested Party shall respond and enter into technical consultations within 60 days from the receipt of the written request referred to in paragraph 1, unless otherwise determined by the Parties, with a view to reaching a mutually satisfactory solution within 180 days from the request. Technical consultations may be conducted via any means mutually agreed by the Parties.
4. If the requesting Party considers that the matter is urgent or involves
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perishable goods, it may request that technical consultations take place within a shorter time frame than that provided for under paragraph 3.
5. The technical consultations under this Article shall be without prejudice to rights and obligations pertaining to dispute settlement proceedings under Chapter Eight (Dispute Settlement) and the WTO Agreement.
Article 2.12. Import Licensing
1. Each Party shall ensure that all automatic and non-automatic import licensing procedures are implemented in a transparent and predictable manner, and applied in accordance with the Agreement on Import Licensing Procedures as contained in Annex 1A to the WTO Agreement (hereinafter referred to in this article as âImport Licensing Agreementâ). Neither Party shall adopt or maintain a measure that is inconsistent with the Import Licensing Agreement.
2. Promptly after this Agreement enters into force, each Party shall notify the other Party of its existing import licensing procedures, if any. The notification shall:
(a) include the information specified in Article 5 of the Import Licensing Agreement; and
(b) be without prejudice as to whether the import licensing procedure is consistent with this Agreement.