3. Before applying any new or modified import licensing procedure, a Party shall publish the new procedure or modification on an official government Internet site. To the extent possible, the Party shall do so at least 21 days before the new procedure or modification takes effect.
4. Neither Party shall apply an import licensing procedure to a good of the
other Party unless the Party has complied with the requirements of paragraph 2 and 3 with respect to that procedure.
Article 2.13. Fees and Formalities Connected with Importation and Exportation2-7
1. Each Party shall ensure, in accordance with Article VII:1 of GATT 1994 that all fees and charges of whatever character (other than import or export duties, charges equivalent to an internal tax or other internal charge applied consistently with Article I1:2 of GATT 1994, and anti-dumping and countervailing duties) imposed on or in connection with import or export are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation on imports or exports for fiscal purposes.
2. Each Party shall promptly publish details of the fees and charges that it imposes in connection with importation or exportation and shall make such information available on the internet.
3. Neither Party shall require consular transactions, including related fees and charges, in connection with the importation of a good of the other Party. Neither Party shall require that any customs documentation supplied in connection with the importation of any good of the other Party be endorsed, certified or otherwise sighted or approved by the importing Partyâs overseas representatives, or persons or entities with authority to act on the importing Partyâs behalf, nor impose any related fees or charges.
Article 2.14. State Trading Enterprises
The rights and obligations of the Parties with respect to state trading enterprises shall be governed by Article XVI of GATT 1994, its interpretative notes, and the Understanding on the Interpretation of Article XVI of GATT 1994, which are incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.15. Sanitary and Phytosanitary Measures
1. The objective of this Article is to protect human, animal or plant life or health in the Partiesâ territories while facilitating trade by minimizing the negative effects on trade between the Parties.
2. This Article shall apply to all Sanitary and Phytosanitary (hereinafter
referred to as âSPSâ) measures of the Parties, which may, directly or indirectly, affect trade between the Parties, taking into account definitions
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under Annex A to the Agreement on the Application of Sanitary and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement (hereinafter referred to as the âSPS Agreementâ).
3. The Parties reaffirm their rights and obligations with respect to each other under the SPS Agreement taking into account relevant decisions of the WTO SPS Committee and international standards, guidelines and recommendations.
4. An exporting Party shall provide timely and appropriate information to an importing Party, where there is a significant change in animal or plant health status or food safety issue in that exporting Party that may affect trade.
5. The Parties shall opportunely exchange information on SPS matters of mutual interest under this Article and strengthen technical cooperation, capacity building and, upon request, consultation opportunities.
6. For purposes of facilitating implementation and communication on SPS matters of this Article, the Parties shall designate contact points as follows:
(a) for Korea, the Ministry of Agriculture, Food and Rural Affairs; and
(b) for Cambodia, the Ministry of Agriculture, Forestry and Fisheries;
or their respective successors.
7. Neither Party shall have recourse to Chapter Eight (Dispute Settlement) for any matter arising under this Article.
Article 2.16. Technical Regulations, Standards and Conformity Assessment Procedures
1. The Parties reaffirm their existing rights and obligations with respect to each other under the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement (hereinafter referred to as the âTBT
Agreementâ).
2. The Parties recognize the importance of the provisions relating to
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transparency in the TBT Agreement. In this respect, the Parties shall take into account relevant decisions and recommendations adopted by the WTO Committee on Technical Barriers to Trade since 1 January 1995 (G/TBT/1/Rev.14) as may be revised, issued by the WTO Committee on Technical Barriers to Trade.
3. The Parties agree to use relevant international standards as a basis for technical regulations and to ensure that central government bodies use relevant international standards or their relevant parts as a basis for their conformity assessment procedures, except where, as duly explained upon request, such international standards or relevant parts would be ineffective or inappropriate means for the fulfillment of the legitimate objectives as provided in Articles 2.4 and 5.4 of the TBT Agreement respectively.
4. In determining whether an international standard, guide, or recommendation within the meaning of Articles 2 and 5, and Annex 3 of the TBT Agreement exists, each Party shall apply the Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2 and 5, and Annex 3 of the Agreement, adopted on 13 November 2000 by the WTO Committee on Technical Barriers to Trade (Annex 2 to PART 1 of G/TBT/1/Rev.14), and any subsequent development thereof. Such international standards shall include, inter alia, but are not limited to, those developed by the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the International Telecommunication Union (ITU) and Codex Alimentarius Commission (CAC).
5. Where a Party detains, at a port of entry, goods including testing samples for conformity assessment exported from the other Party due to a perceived failure to comply with a technical regulation or a conformity assessment procedure, the reasons for the detention shall be promptly notified to the importer or his or her representative.
6. Each Party shall designate contact points which shall work jointly in order to facilitate the implementation of this Article and communication on the matters of technical barriers to trade arising from this Agreement. The contact points shall be:
(a) for Korea, the Korean Agency for Technology and Standards; and
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(b) for Cambodia, Institute of Standards of Cambodia;
or their respective successors.
Section Section F: Institutional Provisions
Article 2.17. Committee on Trade In Goods
1. For purposes of the effective implementation and operation of this Chapter and Chapter Five (Trade Remedies), the Parties hereby establish a Committee on Trade in Goods consisting of representatives of the Parties.
2. The Committee on Trade in Goods shall meet on the request of a Party or the Joint Committee, at a mutually agreed time, venue, and means, to consider any matter arising under this Chapter and Chapter Five (Trade Remedies).
3. The functions of the Committee on Trade in Goods shall include:
(a) reviewing and monitoring the implementation and operation of this Chapter and Chapter Five (Trade Remedies), and making a report and recommendation, if appropriate;
(b) promoting trade in goods between the Parties, including through consultations on accelerating reduction or elimination of customs duties under this Agreement and other issues as appropriate;
(c) addressing barriers to trade in goods between the Parties, especially those related to the application of non-tariff measures, and, if appropriate, referring such matters to the Joint Committee for its consideration;
(d) addressing any issues related to measure to update each Partyâs Schedule to reflect amendments of Harmonized System, including adoption and review of transposition guidelines, the transposition of the Partiesâ Schedules of tariff commitments and exchanging transposed Schedules of tariff commitments and
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(e)
(f)
correlation tables in a timely manner;
discussing any matter arising under this Chapter and Chapter Five (Trade Remedies) as agreed; and
designating contact points, upon request of either Party, which
facilitate communications on specific matters arising from this Chapter and Chapter Five (Trade Remedies).
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Chapter CHAPTER THREE RULES OF ORIGIN
Section Section a: Rules of Origin
Article 3.1. Definitions for Purposes of this Chapter:
CIF means the value of the good imported, and includes the cost of freight and insurance up to the port or place of entry into the country of importation;
competent authority means the government authority or authorities designated by a Party and notified to the other Party;
exporter means a natural or juridical person located in the territory of a Party from where goods are exported by such a person;
FOB means the free-on-board value of a good, inclusive of the cost of transport from the producer to the port or site of final shipment abroad;
Generally Accepted Accounting Principles means those principles recognized by consensus or with substantial authoritative support in a Party with respect to the recording of revenues, expenses, costs, assets, and liabilities; the disclosure of information; and the preparation of financial statements. These principles may encompass broad guidelines for general application as well as detailed standards, practices and procedures;
goods shall include materials or products, which can be wholly obtained or produced, even if they are intended for later use as materials in another production process. For purposes of this Chapter, the terms âgoodsâ and âproductsâ can be used interchangeably and the terms âgoodâ and âproductâ shall be interpreted accordingly;
Harmonized System shall have the meaning as defined in Article 1.1 (General Definitions);
importer means a natural or juridical person located in the territory of a Party into where goods are imported by such a person;
issuing body means an entity designated or authorized by a Party to issue a
Certificate of Origin and notified to the other Party in accordance with this Chapter;
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fungible goods or materials means goods or materials that are interchangeable for commercial purposes, whose properties are essentially identical;
materials shall include ingredients, raw materials, parts, components, sub- assemblies used in the production process;
non-originating goods or non-originating materials mean goods or materials which do not qualify as originating in accordance with this Chapter;
originating goods shall have the meaning as defined in Article 1.1 (General Definitions);
packing materials and containers for the transportation means the goods used to protect a good during its transportation, different from those materials or containers used for its retail sale;
preferential tariff treatment means tariff concessions granted to originating goods as reflected by the tariff rates applicable under this Agreement;
Product Specific Rules means the rules that specify that the materials have undergone a change in tariff classification or a specific manufacturing or processing operation, or satisfy a regional value content or a combination of any of these criteria;
producer means a person who engages in the production of goods;
production means methods of obtaining a good including growing, mining, harvesting, raising, breeding, extracting, gathering, collecting, capturing, fishing, trapping, hunting, manufacturing, producing, processing or
assembling a good; and
third country means a non-Party.
Article 3.2. Origin Criteria
1. For purposes of this Agreement, a good imported into the territory of a Party shall be deemed to be originating and eligible for preferential tariff treatment if it conforms to the origin requirements under any one of the following:
(a) a good which is wholly obtained or produced in the territory of the exporting Party as set out and defined in Article 3.3;
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(b)
a good which is produced in the territory of the exporting Party exclusively from originating materials; or
(c) a good which is produced in the territory of the exporting Party using non-originating materials, provided that the good satisfies the applicable requirements set out in Annex 3-A. 2. Except as provided for in Article 3.6, the conditions for acquiring
originating status set out in this Chapter must be fulfilled without interruption in the territory of the exporting Party.
Article 3.3. Wholly Obtained or Produced GoodsWithin the Meaning of Article 3.2.1(a), the Following Shall Be Considered to Be Wholly Obtained or Produced In the Territory of a Party:
(a)
(b) (c)
(d)
(e)
(f)
plants and plant products harvested, picked or gathered after being grown there;
live animals born and raised there;
goods obtained from live animals referred to in subparagraph
(b);
goods obtained from hunting, trapping, fishing, aquaculture, gathering or capturing conducted there;
minerals and other naturally occurring substances, not included in subparagraphs (a) through (d), extracted or taken from its soil, waters, seabed or beneath its seabed;
fish, shellfish, and other marine life taken by vessels registered with the Party and entitled to fly its flag, and other products taken by the Party or a person of that Party, from the waters, seabed or beneath the seabed outside the territorial waters of the Party, provided that the Party has the rights to exploit! the natural resources of such waters, seabed and beneath the seabed under international law;
' Ror purposes of determining the origin of fish, shellfish, and other marine life, ârights to exploitâ in Article 3.3(f) include those rights of access to the fisheries resources of a coastal state, as accruing from any agreements or arrangements between a Party and the coastal state at the level of governments or duly authorized private entities.
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(g) fish, shellfish, and other marine life taken from the high seas by vessels registered with the Party and entitled to fly its flag;
(h) goods produced or made on board factory ships registered with a Party and entitled to fly its flag, exclusively from products referred to in subparagraph (f) or (g);
@) goods taken from outer space provided that they are obtained by the Party or a person of that Party;
@ goods which are:
@) waste and scrap derived from production or consumption there, provided that such goods are fit only for disposal, for the recovery of raw materials, or for recycling purposes; or
Gi) â_- used goods collected there, provided that such goods are fit only for disposal, for the recovery of raw materials, or for recycling purposes; and
(k) goods obtained or produced in the territory of the Party solely from goods referred to in subparagraphs (a) through (j).
Article 3.4. Calculation of Regional Value Content
The regional value content (hereinafter referred to as âRVCâ) of a good, specified in Annex 3-A, shall be calculated by using either of the following formulas:
(a) Direct/Build-Up Method
VOM + Direct + Direct + Profit + Other costs labor Overhead Cost Cost RVC= --x 100% FOB
Where: @) VOM is the value of originating materials, parts or
goods that are acquired or self-produced by the producer in the production of the good;
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ii) direct labour cost includes wages, remuneration and other employee benefits;
Gii) direct overhead cost is the total overhead expense; and
(iv) _ other costs are the costs incurred in placing the good in the ship or other means of transport for export including, but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees and service charges.
or (b) Indirect/Build-Down Method
FOB - VNM RVC = -â---------------------- x 100% FOB
VNM means value of non-originating materials, which shall be:
(i) the CIF value at the time of importation of the materials, parts or goods; or
(ii) __ the earliest ascertained price paid for the materials, parts or goods of undetermined origin in the territory of the Party where the working or processing has taken place.
Article 3.5. Treatment for Certain Goods
Notwithstanding Article 3.2, certain goods shall be considered to be originating even if the production process or operation has been undertaken in the Gaeseong Industrial Complex located in the Korean Peninsula, on materials exported from a Party and subsequently re-imported to that Party provided that the conditions set out in Annex 3-B are fulfilled.
Article 3.6. Accumulation
1. Unless otherwise provided for in this Chapter, a good originating in the territory of a Party, which is used in the territory of the other Party as material for a finished good eligible for preferential tariff treatment, shall be considered to be originating in the territory of the latter Party where working or processing of the finished good has taken place.
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2. The Parties may agree to review this Article with a view to extending the application of the accumulation set out in paragraph 1 for purposes of qualifying goods as originating goods under this Agreement.
Article 3.7. Non-Qualifying Operations1. Notwithstanding Any Provisions In this Chapter, a Good Shall Not Be Considered to Be Originating In the Territory of a Party If the Following Operations Are Undertaken Exclusively by Itself or In Combination In the
territory of that Party:
(a) preserving operations to ensure that the good remains in good condition during transport and storage;
(b) changes of packaging, breaking-up and assembly of packages;
(c) simpleâ washing, cleaning, removal of dust, oxide, oil, paint or other coverings;
(d) _ ironing or pressing of textiles;
(e) simple painting and polishing operations;
ff) husking, partial or total bleaching, polishing and glazing of cereals and rice;
(g) operations to color sugar or form sugar lumps;
(h) simple peeling, stoning, or un-shelling;
@) sharpening, simple grinding, or simple cutting;
@ sifting, screening, sorting, classifying, grading, or matching;
(k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
ad affixing or printing marks, labels, logos and other like
distinguishing signs on products or their packaging;
? For purposes of this Article, âsimpleâ generally describes an activity which does not need special skills, or machines, apparatus, or equipment especially produced or installed for carrying out the activity.
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(m) _ simple mixing? of products, whether or not of different kinds;
(n) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;
(0) simple testing or calibrations; or (p) slaughtering of animalsâ,