Article C-06. Goods Re-entered after Repair or Alteration (6)
1. Neither Party may apply a customs duty to a good, regardless of its origin, that reenters its territory after that good has been exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in its territory.
2. Neither Party may apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.
Article C-07. Most-favoured-nation Rates of Duty on Certain Goods
1. Each Party shall eliminate its most-favoured-nation tariff applied to the goods indicated in the Harmonized System tariff items set out in Annex C-07.
2. The schedule set out in Annex C-07 provides for the elimination of the most-favoured nation tariff of each Party for the affected goods no later than January 1, 1999.
Section III. Non-tariff Measures
Article C-08. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, neither Party may 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 for the territory of the other Party, except in accordance with Article XI of the GATT 1994, including its interpretative notes, and to this end Article XI of the GATT 1994 and its interpretative notes, or any equivalent provision of a successor agreement to which both Parties are party, are incorporated into and made a part of this Agreement.
2. The Parties understand that the GATT 1994 rights and obligations incorporated by paragraph 1 prohibit, in any circumstances in which any other form of restriction is prohibited, export price requirements and, except as permitted in enforcement of countervailing and antidumping orders and undertakings, import price requirements.
3. In the event that a Party adopts or maintains a prohibition or restriction on the importation from or exportation to a non-Party of a good, nothing in this Agreement shall be construed to prevent the Party from:
(a) limiting or prohibiting the importation from the territory of the other Party of such good of that non-Party; or
(b) requiring as a condition of export of such good of the Party to the territory of the other Party, that the good not be re-exported to the non-Party, directly or indirectly, without being consumed in the territory of the other Party.
4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, on request of the other Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing and distribution arrangements in the other Party.
5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex C-01.3 and Annex C-08.
Article C-09. Customs User Fees
Neither Party may adopt or maintain any customs user fee of the type referred to in Annex C-09 for originating goods.
Article C-10. Wine and Distilled Spirits
1. Neither Party may adopt or maintain any measure requiring that distilled spirits imported from the territory of the other Party for bottling be blended with any distilled spirits of the Party.
2. Annex C-10.2 applies to other measures relating to wine and distilled spirits.
Article C-11. Geographical Indications
As set out in Annex C-11 and taking into account the TRIPS Agreement, the Parties shall protect the geographical indications for the products specified in that Annex.
Article C-12. Export Taxes
Neither Party may adopt or maintain any duty, tax or other charge on the export of any good to the territory of the other Party, unless such duty, tax or charge is adopted or maintained on any such good when destined for domestic consumption.
Article C-13. Other Export Measures
1. Except as set out in Annex C-08, a Party may adopt or maintain a restriction otherwise justified under Articles XI: 2(a) or XX(g), (i) or (j) of the GATT 1994 with respect to the export of a good of the Party to the territory of the other Party, only if:
(a) the restriction does not reduce the proportion of the total export shipments of the specific good made available to the other Party relative to the total supply of that good of the Party maintaining the restriction as compared to the proportion prevailing in the most recent 36-month period for which data are available prior to the imposition of the measure, or in such other representative period on which the Parties may agree;
(b) the Party does not impose a higher price for exports of a good to the other Party than the price charged for such good when consumed domestically, by means of any measure, such as licenses, fees, taxation and minimum price requirements. The foregoing provision does not apply to a higher price that may result from a measure taken pursuant to subparagraph (a) that only restricts the volume of exports; and
(c) the restriction does not require the disruption of normal channels of supply to the other Party or normal proportions among specific goods or categories of goods supplied to the other Party.
2. The Parties shall cooperate in the maintenance and development of effective controls on the export of each other's goods to a non-Party in implementing this Article.
Article C-14. Export Subsidies on Agricultural Goods
1. The Parties share the objective of the multilateral elimination of export subsidies for agricultural goods and shall cooperate in an effort to achieve such an agreement.
2. Effective January 1, 2003, neither Party shall introduce or maintain any export subsidy on any agricultural goods originating in, or shipped from, its territory that are exported directly or indirectly to the territory of the other Party.
3. Where an exporting Party considers that a non-Party is exporting an agricultural good to the territory of the other Party with the benefit of export subsidies, the importing Party shall, on written request of the exporting Party, consult with the exporting Party with a view to agreeing on specific measures that the importing Party may adopt to counter the effect of any such subsidized imports. During the period before January 1, 2003, if the importing Party adopts the agreed-upon measures, the exporting Party shall refrain from applying, or immediately cease to apply, any export subsidy to exports of such good to the territory of the importing Party.
4. Until January 1, 2003, should a Party introduce or re-introduce a subsidy on exports of an agricultural good, the other Party may increase the rate of duty on such exports up to the applied most-favoured-nation tariff in effect at that time.
Section IV. Consultations
Article C-15. Consultations and Committee on Trade In Goods and Rules of Origin
1. The Parties hereby establish a Committee on Trade in Goods and Rules of Origin, comprising representatives of each Party.
2. The Committee shall meet at least once each year, and at any other time on the request of either Party or the Commission, to ensure the effective implementation and administration of this Chapter, Chapter D, Chapter E and the Uniform Regulations. In this regard, the Committee shall:
(a) monitor the implementation and administration by the Parties of this Chapter, Chapter D, Chapter E and the Uniform Regulations to ensure their uniform interpretation;
(b) at the request of either party, review and endeavour to agree on, any proposed modification of or addition to this Chapter, Chapter D, Chapter E or the Uniform Regulations;
(c) recommend to the Commission any modification of or addition to this Chapter, Chapter D, Chapter E or the Uniform Regulations and to any other provision of this Agreement as may be required to conform with any change to the Harmonized System; and (d) consider any other matter relating to the implementation and administration by the Parties of this Chapter, Chapter D, Chapter E and the Uniform Regulations referred to it by (i) a Party, (ii) the Customs Sub-Committee established under Article E-13, or (iii) the Sub-Committee on Agriculture established under paragraph 4.
3. If the Committee fails to resolve a matter referred to it pursuant to paragraph 2 (b) or (d) within 30 days of such referral, either Party may request a meeting of the Commission under Article N-07.
4. The Parties hereby establish a Sub-Committee on Agriculture that shall:
(a) provide a forum for the Parties to consult on issues relating to market access for agricultural goods, including wine and alcoholic beverages;
(b) monitor the implementation and administration of this Chapter, Chapter D, and the Uniform Regulations as they affect agricultural goods;
(c) meet annually or whenever so requested by either Party;
(d) refer to the Committee any matter under sub-paragraph (b) on which it has been unable to reach agreement;
(e) submit to the Committee for its consideration any agreement reached under this paragraph;
(f) report annually to the Committee; and
(g) follow-up and promote cooperation in matters relating to agricultural goods.
5. Each Party shall to the greatest extent practicable, take all necessary measures to implement any modification of or addition to this Agreement within 180 days of the date on which the Commission agrees on the modification or addition.
6. The Parties shall convene on the request of either Party a meeting of their officials responsible for customs, immigration, inspection of food and agricultural products, border inspection facilities, and regulation of transportation for the purpose of addressing issues related to movement of goods through the Parties' ports of entry.
7. Nothing in this Chapter shall be construed to prevent a Party from issuing a determination of origin or an advance ruling relating to a matter under consideration by the Committee or from taking such other action as it considers necessary, pending a resolution of the matter under this Agreement.
Article C-16. Customs Valuation Code
The Customs Valuation Code shall govern the customs valuation rules applied by the Parties to their reciprocal trade. The Parties agree that they will not make use in their reciprocal trade of the options and reservations permitted under Article 20 and paragraphs 2, 3 and 4 of Annex III of the Customs Valuation Code.
Article C-17. Price Band System
1. Chile may maintain its Price Band System as established in Article 12 of Law 18.525 for the products covered by that Law and listed in Annex C-17.1. Chile shall not incorporate new products in the Price Band System or modify the method by which it is calculated and applied in a manner that makes it more trade restrictive than it was on November 13, 1996.
2. With respect to soft wheat flour, the multiplication factor provided for in Article 12 of Law 18.525 shall be established by statute and for a period not less than three years, consistent with Article 14 of that Law.
3. The tariff reductions in the Schedule of Chile to Annex C-02.2 for the products covered by Law 18.525 shall apply only to the ad-valorem tariff component and not to the specific duties or rebates that could result from the application of Law 18.525.
Section V. Definitions
Article C-18. Definitions
For purposes of this Chapter:
advertising films means recorded visual media, with or without sound-tracks, consisting essentially of images showing the nature or operation of goods or services offered for sale or lease by a person established or resident in the territory of any Party, provided that the films are of a kind suitable for exhibition to prospective customers but not for broadcast to thegeneral public, and provided that they are imported in packets that each contain no more than one copy of each film and that do not form part of a larger consignment;
agricultural goods means a good provided for in any of the following: (7)
(a) Harmonized System (HS) Chapters 1 through 24 (other than a fish or fish product); or
(b) HS subheading 2905.43 manitol HS subheading 2905.44 sorbitol HS heading 33.01 essential oils HS headings 35.01 to 35.05 albuminoidal substances, modified starches, glues HS subheading 3809.10 finishing agents HS subheading 3823.60 sorbitol n.e.p. HS headings 41.01 to 41.03 hides and skins HS heading 43.01 raw furskins HS headings 50.01 to 50.03 raw silk and silk waste HS headings 51.01 to 51.03 wool and animal hair HS headings 52.01 to 52.03 raw cotton, cotton waste and cotton carded or combed HS heading 53.01 raw flax HS heading 53.02 raw hemp;
commercial samples of negligible value means commercial samples having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount in the currency of either of the Parties, or so marked, torn, perforated or otherwise treated that they are unsuitable for sale or for use except as commercial samples; consumed means:
(a) actually consumed; or
(b) further processed or manufactured so as to result in a substantial change in value, form or use of the good or in the production of another good;
customs duty includes any customs or import duty and a charge of any kind imposed in connection with the importation of a good, including any form of surtax or surcharge in connection with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article III: 2 of the GATT 1994, or any equivalent provision of a successor agreement to which both Parties are party, in respect of like, directly competitive or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
(b) anti-dumping or countervailing duty that is applied pursuant to a Party's domestic law and not applied inconsistently with Chapter M (Anti-dumping and Countervailing Duty Matters);
(c) fee or other charge in connection with importation commensurate with the cost of services rendered; and
(d) premium offered or collected on an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions, tariff rate quotas or tariff preference levels;
distilled spirits include distilled spirits and distilled spirit-containing beverages;
drawback program includes measures under which a Party refunds in whole or in part the amount of customs duties paid, or waives or reduces the amount of customs duties owed, on a good imported into its territory on condition that the good is:
(a) subsequently exported to the territory of the other Party;
(b) used as a material in the production of another good that is subsequently exported to the territory of the other Party; or
(c) substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of the other Party;
duty deferral program includes measures such as those governing foreign-trade zones, "regímenes de zonas francas y regímenes aduaneros especiales", temporary importations under bond, bonded warehouses, "maquiladoras" and inward processing programs;
duty-free means free of customs duties;
goods imported for sports purposes means sports requisites for use in sports contests, demonstrations or training in the territory of the Party into whose territory such goods are imported;
goods intended for display or demonstration includes their component parts, ancillary apparatus and accessories;
local area network apparatus means a good dedicated for use solely or principally to permit the interconnection of automatic data processing machines and units thereof for a network that is used primarily for the sharing of resources such as central processor units, data storage devices and input or output units, including in-line repeaters, converters, concentrators, bridges and routers, and printed circuit assemblies for physical incorporation into automatic data processing machines and units thereof suitable for use solely or principally with a private network, and providing for the transmission, receipt, error-checking, control, signal conversion or correction functions for non-voice data to move through a local area network;
performance requirement means a requirement that:
(a) a given level or percentage of goods or services be exported;
(b) domestic goods or services of the Party granting a waiver of customs duties be substituted for imported goods or services;
(c) a person benefitting from a waiver of customs duties purchase other goods or services in the territory of the Party granting the waiver or accord a preference to domestically produced goods or services;
(d) a person benefitting from a waiver of customs duties produce goods or provide services, in the territory of the Party granting the waiver, with a given level or percentage of domestic content; or
(e) relates in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows;
printed advertising materials means those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials and posters, that are used to promote,publicize or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge;
repair or alteration does not include an operation or process that either destroys the essential characteristics of a good or creates a new or commercially different good (8);
total export shipments means all shipments from total supply to users located in the territory of the other Party;
total supply means all shipments, whether intended for domestic or foreign users, from:
(a) domestic production;
(b) domestic inventory; and
(c) other imports as appropriate; and
waiver of customs duties means a measure that waives otherwise applicable customs duties on any good imported from any country, including the territory of the other Party.
Chapter C bis. Sanitary and Phytosanitary Measures
Article Cbis-01. Objectives
The objectives of this Chapter are to:
(a) protect human, animal and plant life or health in the territory of each Party while facilitating trade;
(b) ensure that the Parties’ sanitary and phytosanitary measures do not create unjustified barriers to trade; and
(c) enhance the implementation of the SPS Agreement.
Article Cbis-02. Scope
This Chapter applies to all sanitary and phytosanitary measures that may, directly or indirectly, affect trade between the Parties.
Article Cbis-03. General Provisions
1. The Parties affirm their rights and obligations under the SPS Agreement.
2. This Chapter is not subject to Chapter N, Section II (Dispute Settlement) .
Article Cbis-04. Committee on Sanitary and Phytosanitary Measures
1. The Parties hereby establish a Committee on Sanitary and Phytosanitary Measures, composed of representatives of each Party who have responsibility for sanitary and phytosanitary matters.
2. Each Party shall designate a contact point to coordinate the Committee’s agenda.
3. The Committee provides a forum to:
(a) enhance the understanding of each Party’s sanitary and phytosanitary measures, including through exchange of information relating to each Party’s regulatory systems;
(b) discuss matters related to the development or application of sanitary and phytosanitary measures that may directly or indirectly affect trade between the Parties;
(c) promote bilateral cooperation, between the Parties, on sanitary and phytosanitary issues that are under discussion in multilateral and international fora, including the WTO Committee on Sanitary and Phytosanitary Measures, the Codex Alimentarius Commission, the International Plant Protection Convention, and the World Organization for Animal Health;
(d) consider technical cooperation in relation to development, implementation, and application of sanitary and phytosanitary measures; and
(e) discuss and review progress on addressing sanitary and phytosanitary matters that may arise between the Parties.
4. The Parties shall ensure that the Committee will consider further cooperation on sanitary and phytosanitary matters of mutual interest.
5. Each Party shall ensure the participation, as appropriate, of representatives from its relevant government authorities that are responsible for the development, implementation and enforcement of sanitary and phytosanitary measures, in the Committee meetings referred to in paragraph 6.
6. The Committee shall meet as required, normally on an annual basis. The Committee may meet in person, through teleconference, videoconference or by any other means to ensure its effective operation and fulfillment of its responsibilities.
7. The Committee on Sanitary and Phytosanitary Measures replaces the existing Canada-Chile Sanitary and Phytosanitary Measures Committee established by the Free Trade Commission of the CCFTA on May 10, 2001.
Article Cbis-05. Sanitary and Phytosanitary Issue Avoidance and Resolution
1. The Parties shall work expeditiously to resolve any specific sanitary and phytosanitary trade-related issue and commit to carry out the necessary technical level discussion to resolve any such issue, including an assessment of the scientific basis of the measure at issue.
2. The Parties shall avail themselves of all reasonable options to avoid and resolve sanitary and phytosanitary issues, including meeting in person, using technological means (via teleconference, videoconference) and opportunities that may arise in international fora.
3. If the Parties are unable to resolve an issue expeditiously by technical level discussions, a Party may refer the issue to the Committee. The Committee should consider any matter referred to it as expeditiously as possible.
Article Cbis-06. Contact Points
1. For the purpose of facilitating communication on trade-related sanitary and phytosanitary matters, the Parties agree to establish Contact Points as follows:
(a) for Canada, the Department of Foreign Affairs, Trade and Development, or its successor; and
(b) for Chile, the General Directorate of International Economic Relations, Ministry of Foreign Affairs, or its successor.
2. Each Party, through its Contact Point, shall inform the other Party of the competent authorities that are responsible for the development and application of sanitary and phytosanitary measures.
Article Cbis-07. Definitions
For the purposes of this Chapter:
sanitary or phytosanitary measure means a sanitary or phytosanitary measure as defined in Annex A of the SPS Agreement; and
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures contained in Annex 1A to the WTO Agreement.
Chapter C ter. Technical Barriers to Trade
Article Cter-01. Scope
1. (a) This Chapter applies to the preparation, adoption and application of standards, technical regulations, and conformity assessment procedures of any national and provincial government body that may affect the trade in goods between the Parties.
(b) Each Party shall take reasonable measures as may be available to it to ensure compliance by provincial government bodies with this Chapter.
2. This Chapter does not apply to:
(a) a purchasing specification prepared by a governmental body for production or consumption requirements of such bodies; or
(b) sanitary and phytosanitary measures.
Article Cter-02. Incorporation of the Tbt Agreement
The TBT Agreement, excluding Articles 10, 11, 12, 13, 14. 1, 14. 4 and 15, is hereby incorporated into and made part of this Chapter, mutatis mutandis.
Article Cter-03. Joint Cooperation
1. The Parties shall strengthen their joint cooperation in the areas of technical regulations, standards, and conformity assessment procedures in order to facilitate trade between the Parties. In particular, the Parties shall seek to identify bilateral initiatives that are appropriate for particular issues or sectors, including initiatives for cooperation on: