i. the rate of duty shall conform to the applicable rate set out in its Schedule to Annex III.3.1 (Tariff Elimination); or
ii. the tariff shall be eliminated in equal annual stages ending on the date set out in its Schedule to Annex III.3.1 (Tariff Elimination) for the elimination of the tariff; and
f. a safeguard action may be applied a second time for up to three years, provided:
i. the period of time that has elapsed since the initial application of the measure ended is equal to at least one half the initial period of application;
ii. the rate of duty for the first year of the second action shall not be greater than the rate that would be in effect in accordance with that Party's Schedule to Annex III.3.1 (Tariff Elimination) at the time the first action was imposed; and
iii. the rate of duty applicable to any subsequent year shall be reduced in equal steps such that the duty rate in the final year of the action is equivalent to the rate provided for in that Party's Schedule to Annex III.3.1 (Tariff Elimination) for that year.
3. A Party may take a bilateral emergency action after the expiration of the transition period to deal with cases of serious injury, or threat thereof, to a domestic industry arising from the operation of this Agreement only with the consent of the other Party.
4. The Party taking an action under this Article shall provide to the other Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the action. If the Parties are unable to agree on compensation, the Party against whose good the action is taken may take tariff action having trade effects substantially equivalent to the action taken under this Article. The Party taking the tariff action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects.
5. This Article does not apply to emergency actions respecting goods covered byAnnex III.1 (Textile and Apparel Goods).
Article VI.3. Administration of Emergency Action Proceedings
1. Each Party shall ensure the consistent, impartial and reasonable administration of its laws, regulations, decisions and rulings governing all emergency action proceedings.
2. Each Party shall entrust determinations of serious injury, or threat thereof, in emergency action proceedings to a competent investigating authority, subject to review by judicial or administrative tribunals, to the extent provided by domestic law. Negative injury determinations shall not be subject to modification, except by such review. The competent investigating authority empowered under domestic law to conduct such proceedings should be provided with the necessary resources to enable it to fulfill its duties.
3. Each Party shall adopt or maintain equitable, timely, transparent and effective procedures for emergency action proceedings, in accordance with the requirements set out in Annex VI.3 (Administration of Emergency Action Proceedings).
4. This Article does not apply to emergency actions taken under Annex III.1 (Textile and Apparel Goods).
Article VI.4. Dispute Settlement In Emergency Action Matters
Neither Party may request the establishment of an arbitral panel under Article XIII.8 (Establishment of an Arbitral Panel) regarding any proposed emergency action.
Article VI.5. Definitions
For purposes of this Chapter:
competent investigating authority means the "competent investigating authority" of a Party as defined in Annex VI.5;
contribute importantly means an important cause, but not necessarily the most important cause;
domestic industry means the producers as a whole of the like or directly competitive good operating in the territory of a Party or those whose collective output of the like or directly competitive good constitutes a major proportion of the total domestic production of those goods;
emergency action does not include any emergency action pursuant to a proceeding instituted prior to the entry into force of this Agreement;
good originating in the territory of a Party means an originating good; serious injury means a significant overall impairment of a domestic industry;
threat of serious injury means Serious injury that, on the basis of facts and not merely on allegation, conjecture or remote possibility, is clearly imminent; and
transition period means the 7 year period beginning on the entry into force of this Agreement, except where, in the case of Costa Rica, the tariff elimination for the good against which the action is taken occurs over a longer period of time, in which case the transition period shall be the period of the staged tariff elimination for that good.
Chapter VII. Antidumping Measures
Article VII.1. Antidumping Measures
1. Except as otherwise provided in this Chapter, the WTO Agreement shall govern the rights and obligations of the Parties in respect of the application of antidumping duties.
2. In the interest of promoting improvements to, and clarifications of, the relevant provisions of the WTO Agreement the Parties recognise the desirability of:
(a) establishing a domestic process whereby the investigating authorities can consider, in appropriate circumstances, broader issues of public interest, including the impact of antidumping duties on other sectors of the domestic economy and on competition;
(b) providing for the possibility of imposing antidumping duties that are less than the full margin of dumping in appropriate circumstances;
(c) having a transparent and predictable method for the imposition and collection of antidumping duty that provides for the expeditious assessment of definitive antidumping duties; and
(d) assessing the conditions of competition between the imported products and the conditions of competition between the imported products and the like domestic product pursuant to Article 3.3 of the WTO Agreement on the Interpretation of Article VI of the General Agreement on Tariffs and Trade 1994,
3. In the interest of ensuring procedural fairness and transparency in anti-dumping investigations, the Parties reaffirm their full adherence to their obligations under the relevant provisions of the WTO Agreement including in respect of:
(a) notification to the government of the exporting country upon receipt of a properly documented application for the initiation of an investigation;
(b) public notice and notification to all interested parties of the initiation of an investigation;
(c) notification to all interested parties of the information required by the investigating authorities in the investigation, and the provision of ample opportunity to present evidence in respect of the investigation;
(d) making available the application for the initiation of an investigation to all interested parties and the government of the exporting country upon the initiation of an investigation;
(e) making available to interested parties all evidence submitted by other parties, subject to the requirements to protect confidential information;
(f) the provision of a reasonable opportunity for interested parties to defend their interests, including in the context of a public hearing, by presenting their views, commenting on evidence and views of others, and offering rebuttal evidence and arguments;
(g) the provision of a reasonable opportunity for interested parties to see all information that is relevant to the presentation of their case, subject to the requirements to protect information designated as confidential by the provider;
(h) the provision to interested parties of an explanation of the methodologies used in determining the margin of dumping, and the provision of opportunities to comment on the preliminary determination;
(i) procedures for the submission, treatment and protection of confidential information submitted by parties, procedures to ensure that confidential treatment is warranted and procedures to ensure that adequate public summaries of confidential information are available;
(j) public notice and notice to all interested parties of preliminary and final determinations, which include sufficiently detailed explanations of the determinations of dumping and injury including in respect of all relevant matters of fact and law;
(k) public notice and notice to interested parties of the imposition of any provisional or final measures; and
(l) the provision of procedures for the judicial review of administrative actions relating to final determinations and reviews of determinations.
4. In an investigation, each Party shall provide the other Party with information concerning the point of contact in the investigating authority for that investigation.
5. All disputes between Parties arising in respect of the application of antidumping measures by either Party shall be settled in accordance with the WTO Agreement.
Part Three. SERVICES AND INVESTMENT
Chapter VIII. Services and Investment
Article VII.1. General Provisions
1. The Parties recognise the increasing importance of trade in services and investment in their economies. In their efforts to gradually develop and broaden their relations, the Parties will co-operate in the WTO and plurilateral fora, with the aim of creating the most favourable conditions for achieving further liberalisation and additional mutual opening of markets for trade in services and investment.
2. With a view to developing and deepening their relations under this Agreement, the Parties agree that within 3 years of the date of entry into force, they will review developments related to trade in services and investment, and consider the need for further disciplines in these areas.
3. Upon request of either Party, the other Party shall endeavour to provide information on measures that may have an impact on trade in services and investment.
Article VII.2. Investment
The Parties note the existence of the Agreement between the Government of Canada and the Government of Costa Rica for the Promotion and Protection of Investments, signed in San José, Costa Rica, on March 18, 1998 (APPI).
Article VII.3. Services
1. The Parties herein recognize the importance of their rights and obligations assumed in the General Agreement on Trade in Services (GATS).
2. (a) The Parties to this Agreement shall encourage bodies responsible for the regulation of professional services in their respective territories to:
(i) ensure that measures relating to the licensing or certification of nationals of the other Party are based on objective and transparent criteria, such as competence and the ability to provide a service; and
(ii) cooperate with the view to developing mutually acceptable standards and criteria for licensing and certification of professional service providers.
(b) The following elements may be examined with regard to the standards and criteria referred to in subparagraph (a)(ii):
(i) education - accreditation of schools or academic programs;
(ii) examinations - qualifying examinations for licensing, including alternative methods of assessment such as oral examinations and interviews;
(iii) experience - length and nature of experience required for licensing;
(iv) conduct and ethics - standards of professional conduct and the nature of disciplinary action for non-conformity with those standards;
(v) professional development and re-certification - continuing education and ongoing requirements to maintain professional certification;
(vi) scope of practice - extent of, or limitations on, permissible activities;
(vii) local knowledge - requirements for knowledge of such matters as local laws, regulations, language, geography or climate; and
(vii) consumer protection - alternatives to residency requirements, including bonding, professional liability insurance and client restitution funds, to provide for the protection of consumers.
(b) These bodies should report on the result of their discussions related to the development of mutually acceptable standards mentioned in subparagraph (a)(ii) and, as appropriate, provide any recommendations to the Coordinators.
(c) With respect to the recognition of qualification and licensing requirements, the Parties note the existence of rights and obligations with respect to each other under Article VII of the GATS.
(d) For the purpose of this paragraph, professional services means services, the provision of which requires specialized post-secondary education, or equivalent training or experience, and for which the right to practice is granted or restricted by a Party, but does not include services provided by trades- persons or vessel and aircraft crew members.
Part Four. TRADE FACILITATION
Chapter IX. Trade Facilitation and Additional Provisions
Section I. Trade Facilitation
Article IX.1. Objectives and Principles
1. With the objectives of facilitating trade under this Agreement and cooperating in pursuing trade facilitation initiatives on a multilateral and hemispheric basis, Canada and Costa Rica agree to administer their import and export processes for goods traded under this Agreement on the basis that:
(a) procedures be efficient to reduce costs for importers and exporters and simplified where appropriate to achieve such efficiencies;
(b) procedures be based on any international trade instruments or standards to which the Parties have agreed;
(c) entry procedures be transparent to ensure predictability for importers and exporters;
(d) measures to facilitate trade also support mechanisms to protect persons through effective enforcement of and compliance with national requirements;
(e) the personnel and procedures involved in those processes reflect high standards of integrity;
(f) the development of significant modifications to procedures of a Party include, in advance of implementation, consultations with the representatives of the trading community of that Party;
(g) procedures be based on risk assessment principles to focus compliance efforts on transactions that merit attention, thereby promoting effective use of resources and providing incentives for voluntary compliance with the obligations to importers and exporters; and
(h) the Parties encourage cooperation, technical assistance and the exchange of information, including information on best practices, for the purpose of promoting the application of and compliance with the trade facilitation measures agreed upon under this Agreement.
Article IX.2. Specific Obligations
1. The Parties confirm their rights and obligations under Article VII (Fees and Formalities Connected with Importation and Exportation) and Article X (Publication and Administration of Trade Regulations) of the GATT 1994 and any successor agreements.
2. The Parties shall release goods promptly, particularly those which are unrestricted or uncontrolled. Subject to Article IX.2.3, they shall provide a basic option of:
(a) releasing the goods at the time of entry based on the submission of only the documentation required before the goods arrive or at the time of arrival. This shall not prevent customs from requiring the submission of more extensive documentation through post-entry accounting and verifications, as appropriate; or
(b) releasing the goods based on the submission, before or at the time of arrival of the goods, of all the information necessary to obtain a final accounting of the goods.
3. The Parties recognize that, for certain goods or under certain circumstances, such as goods subject to quota or to health-related or public safety requirements, releasing the goods may require the submission of more extensive information, before or at the time of arrival of the goods, to allow the authorities to examine the goods for release.
4. The Parties shall facilitate and simplify the process and procedures for the release of low-risk merchandise, and shall improve controls on the release of high-risk merchandise. For these purposes, the Parties shall base their examination and release procedures and their post-entry verification procedures on risk assessment principles, rather than examining each and every shipment offered for entry in a comprehensive manner for compliance with all import requirements. This shall not preclude the Parties from conducting quality control and compliance reviews which may require more extensive examinations.
5. The Parties shall ensure that the procedures and activities of various agencies whose requirements on the import or export of goods are maintained, either by themselves or on their behalf by customs, are coordinated to facilitate trade. In this connection, each Party shall take steps to harmonize the data requirements of such agencies with the objective of allowing importers and exporters to present all required data to only one border agency.
6. In their procedures for the clearance of express consignments, the Parties shall apply the World Customs Organization Principles on Express Consignment.
7. The Parties shall introduce or maintain simplified clearance procedures for the entry of goods which are low in value and for which the revenue associated with such imports is not considered significant by the Party maintaining such expedited procedures.
8. The Parties shall work to achieve common processes and simplification of the information necessary for the release of goods, applying, when appropriate, existing international standards. With this objective, the Parties shall establish a means of providing for the electronic exchange of information between customs administrations and the trading community for the purpose of encouraging rapid release procedures. For purposes of this Article, the Parties shall use formats based on international standards for the electronic exchange of information, and shall also take into account the World Customs Organization Recommendations "Concerning the Use of UN/EDIFACT Rules for Electronic Data Interchange" and "Concerning the Use of Codes for the Representation of Data Elements". This shall not preclude the use of additional electronic data transmission standards.
9. The Parties, through their customs administrations, shall establish formal consultation mechanisms with their trade and business communities to promote greater cooperation and the exchange of electronic information.
10. The Parties shall issue written rulings in advance of an importation in response to a written request by an importer, exporter or its representative. Rulings shall be issued for tariff classification, applicable rate of duty, any tax applicable upon importation, or whether goods are considered to be originating goods and entitled to tariff preferences under this Agreement. The rulings shall be as detailed as the nature of the request and the details provided by the person requesting the ruling permits. When a Party determines that a request for an advance ruling is incomplete, it may request additional information, including, where appropriate, a sample of the goods or materials in question from the person requesting the ruling. The advance ruling shall be binding upon the customs administration that issued the ruling at the time the goods are actually imported provided that the facts and circumstances that were the basis for the issuance of the advance ruling remain in effect. The customs administration of a Party may modify or revoke such a ruling at any time but only after notification to the person that requested the ruling and without retroactive application. The Parties may modify or revoke such rulings without notification and with retroactive application in circumstances where inaccurate or false information has been provided.
11. The Parties shall ensure that any administrative action or official decision taken in respect of the import or export of goods is reviewable promptly by judicial, arbitral or administrative tribunals or procedures, independent of the authority issuing the decision, which has the competence to maintain, modify or reverse the determination, in accordance with the law of each Party. The Parties shall provide for an administrative level of appeal or review, independent of the official or, where applicable, the office responsible for the original action or decision, before requiring a person to seek redress at a more formal or judicial level.
12. The Parties shall promptly publish or otherwise make available, including through electronic means, all their laws, regulations, judicial decisions and administrative rulings or policies of general application relating to their requirements for imported or exported goods. They shall also make available notices of an administrative nature, such as general agency requirements and entry procedures, hours of operation and points of contacts for information enquiries.
13. Each Party shall, in accordance with their laws, treat as strictly confidential all business information that is by its nature confidential or that is provided on a confidential basis.
Article IX.3. Cooperation
1. The Parties recognize that technical cooperation is fundamental to facilitating compliance with the obligations set forth in this Agreement and for reaching a better degree of trade facilitation.
2. The Parties, through their customs administrations, agree to develop a technical cooperation program under such mutually agreed terms as the scope, timing and cost of cooperative measures, in customs-related areas such as, inter alia:
(a) training;
(b) risk assessment;
(c) prevention and detection of contraband and illegal activities, in collaboration with other authorities;
(d) implementation of the Customs Valuation Agreement;
(e) audit and verification frameworks;
(f) customs laboratories; and
(g) electronic exchange of information.
3. The Parties shall cooperate in the development of effective mechanisms for communicating with the trade and business communities.
Article IX.4. Future Work Program
1. With the objective of developing further steps to facilitate trade under this Agreement, the Parties establish the following work program:
(a) to develop the Cooperation Program referred to in Article IX.3 for the purpose of facilitating compliance with the obligations set forth in this Agreement; and
(b) as appropriate, to identify and submit for the consideration of the Commission new measures aimed at facilitating trade between the Parties, taking as a basis the objectives and principles set forth in Article IX.1 of this Chapter, including, inter alia:
(i) common processes;
(ii) general measures to facilitate trade;
(iii) official controls;
(iv) transportation;
(v) the promotion and use of standards;
(vi) the use of automated systems and Electronic Data Interchange (EDI);
(vii) the availability of information;
(viii) customs and other official procedures concerning the means of transportation and transportation equipment, including containers;
(ix) official requirements for imported goods;
(x) simplification of the information necessary for the release of goods;
(xi) customs clearance of exports;
(xii) transshipment of goods;
(xiii) goods in international transit;
(xiv) commercial trade practices; and
(xv) payment procedures.
2. The Parties may periodically review the work program referred to in this Article for the purpose of agreeing upon new cooperation actions that might be needed to promote application of the trade facilitation obligations and principles, including new measures that might be agreed upon by the Parties.
3. Through the Parties' respective customs administrations and other border-related authorities as appropriate, the Parties will review relevant international initiatives on trade facilitation, including the Compendium of Trade Facilitation Recommendations, developed by the United Nations Conference on Trade and Development and the United Nations Economic Commission for Europe, to identify areas where further joint action would facilitate trade between the Parties and promote shared multilateral objectives.
Section II. Additional Provisions
Article IX.5. Sanitary and Phytosanitary Measures
1. The Parties reaffirm their rights and obligations under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures.
2. The Parties agree to use the WTO dispute settlement procedures for any formal disputes regarding sanitary and phytosanitary (SPS) measures.
3. Recognizing the benefits from a bilateral program of technical and institutional cooperation, a Committee on Sanitary and Phytosanitary Measures, comprising representatives of each Party who have responsibilities for sanitary and phytosanitary matters, is hereby established. This Committee would provide a regular forum for consultations and co-operation to:
(a) enhance the effectiveness of Parties' regulations in this area in a manner which is fully consistent with, and supportive of, relevant WTO rights and obligations, with a view to improving food safety and sanitary and phytosanitary conditions; and
(b) facilitate discussions on bilateral issues with a view to avoiding disputes between Parties.
4. The Committee may consider the following:
(a) the design, implementation and review of technical and institutional co- operation programs;
(b) the development of operational guidelines to facilitate implementation of, inter alia, mutual recognition and equivalence agreements, and product control, inspection and approval procedures;
(c) the promotion of enhanced transparency of SPS measures;
(d) the identification and resolution of SPS-related problems;
(e) the recognition of pest- or disease-free areas; and
(f) the promotion of bilateral consultation on sanitary and phytosanitary issues under discussion in multilateral and international fora.
5. The Committee will meet as required, normally on an annual basis, and report on its activities and work plans to the Coordinators.