4. Paragraph 1(b) of Article 107 (Restrictions to Safeguard the Balance-of-Payments) of the Agreement shall be replaced with the following:
“(b) in the case of trade in services, adopt or maintain restrictions on which it has undertaken commitments, including on payments or transfers for transactions related to such commitments. It is recognised that particular pressures on the balance-of-payments of a Party in the process of economic development or economic transition may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for the implementation of its programme of economic development or economic transition.”
17 Measures that are aimed at ensuring the equitable or effective imposition or collection of direct taxes include measures taken by a Party under its taxation system which:
(i) apply to non-resident service suppliers in recognition of the fact that the tax obligation of non-residents is determined with respect to taxable items sourced or located in the Party's territory; or
(ii) apply to non-residents in order to ensure the imposition or collection of taxes in the Party's territory; or
(iii) apply to non-residents or residents in order to prevent the avoidance or evasion of taxes, including compliance measures; or
(iv) apply to consumers of services supplied in or from the territory of the other Party in order to ensure the imposition or collection of taxes on such consumers derived from sources in the Party's territory; or
(v) distinguish service suppliers subject to tax on worldwide taxable items from other service suppliers, in recognition of the difference in the nature of the tax base between them; or
(vi) determine, allocate or apportion income, profit, gain, loss, deduction or credit of resident persons or branches, or between related persons or branches of the same person, in order to safeguard the Party's tax base.
Tax terms or concepts in sub-paragraph (d) and in this footnote are determined according to tax definitions and concepts, or equivalent or similar definitions and concepts, under the domestic law of the Party taking the measure.”
Section F. GENERAL PROVISIONS
Article 16. General Provisions
1. This Protocol shall enter into force on the first day of the month after the Parties have exchanged through diplomatic channels written notifications confirming the completion of their respective domestic procedures for the entry into force of this Protocol, or on such other date as the Parties may agree in writing.
2. This Protocol and its Appendices shall form an integral part of the China-Singapore FTA.
Conclusion
IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective Governments, have signed this Protocol.
Done at Beijing, China, this 4th day of December 2023, in duplicate in both the English and Chinese languages, all texts being equally authentic.
FOR THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA
WANG WENTAO
FOR THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE
GAN KIMYONG
Preamble
The Government of the People's Republic of China and the Government of the Republic of Singapore ("the Parties"),
RECOGNISING their long-standing friendship, strong economic ties and close cultural links as well as the special relationship shared by both countries;
RECALLING the 1st Joint Council for Bilateral Cooperation (the "JCBC") meeting in May 2004 between the then Chinese Vice Premier, Mdm Wu Yi and the then Singapore Deputy Prime Minister, Mr Lee Hsien Loong where both leaders agreed on the desirability of concluding a bilateral free trade agreement (the "CSFTA");
RECALLING the 2nd JCBC meeting in September 2005 where both Parties agreed to look into China's suggestion to form an expert study group to evaluate how a bilateral free trade agreement could result in a "win-win" outcome and reciprocal benefits for both countries;
RECALLING the meeting held in October 2005 between Chinese Premier, Mr Wen Jiabao and Singapore Prime Minister, Mr Lee Hsien Loong where both leaders agreed that the CSFTA in the long run would be beneficial not just for their respective countries, but the region as well, and agreed to establish a Joint Expert Group (the "JEG") to undertake a comprehensive study which was jointly launched by both countries in April 2006 with the aim of promoting the early commencement of the CSFTA negotiations at a mature time;
RECALLING the 3rd JCBC meeting held in August 2006 between the then Chinese Vice Premier, Mdm Wu Yi and Singapore Deputy Prime Minister, Mr Wong Kan Seng where both Parties agreed to launch negotiations for the CSFTA following the successful completion of a study by the JEG which showed long-term economic benefits to both sides, and which decision was reaffirmed by both Chinese Premier, Mr Wen Jiabao and Singapore Deputy Prime Minister, Mr Wong Kan Seng later on the same day;
RECALLING the recommendations in the JEG Report that the CSFTA is also expected to enhance the strong bilateral economic and political linkages between the two countries, and will contribute to regional economic integration by injecting additional momentum into the establishment of the China-ASEAN Free Trade Area;
DESIRING to strengthen and enhance the economic, trade and investment cooperation between the Parties through deepening economic integration for acceleration of economic development and cooperation for the benefit of both domestic consumers and producers of both Parties;
EMPHASISING the need to enhance economic and social benefits and improve living standards in their respective territories through the expansion of trade and investment flows;
SEEKING to facilitate and enhance regional economic cooperation and integration;
REAFFIRMING their desire to build upon their commitments at the World Trade Organization and under the Framework Agreement on Comprehensive Economic Co-operation between the People's Republic of China and the Association of Southeast Asian Nations; and
SEEKING to promote and catalyse the process of establishing the China-ASEAN Free Trade Area,
Have agreed as follows:
Body
Chapter 1. Initial Provisions
Article 1. Establishment of a Free Trade Area
The Parties to this Agreement, consistent with Article XXIV of the GATT 1994 and Article V of the GATS, hereby establish a free trade area.
Article 2. Objectives
The objectives of this Agreement are:
(a) to liberalise and promote trade in goods in accordance with Article XXIV of the GATT 1994;
(b) to liberalise and promote trade in services in accordance with Article V of the GATS, including promotion of mutual recognition of professions;
(c) to establish a transparent, predictable and facilitative investment regime and provide a more stable policy framework for investors;
(d) to promote economic cooperation, explore new areas of collaboration, and further strengthen bilateral cooperation in view of recent regional and international strategic developments;
(e) to promote mutually beneficial economic relations as well as to encourage greater collaboration among their respective professional bodies and academic institutions;
(f) to enhance bilateral linkages through other sector-specific collaborations, including sanitary and phytosanitary measures, technical barriers to trade, and customs co-operation; and
(g) to improve the efficiency and competitiveness of their manufacturing and services sectors and to expand trade and investment between the Parties, including joint exploitation of commercial and economic opportunities in non-Parties.
Chapter 2. General Definitions
Article 3. General Definitions
1. Unless otherwise provided, for the purposes of this Agreement:
(a) ASEAN means the Association of Southeast Asian Nations;
(a)bis 2023 Protocol means the Protocol to Further Upgrade the Free Trade Agreement between the Government of the People’s Republic of China and the Government of the Republic of Singapore
(b) customs duty refers to any duty or charge of any kind imposed in connection with the importation of a good but does not include:
(i) charges equivalent to an internal tax including excise duties and a goods and services tax imposed consistently with a Party's WTO obligations;
(ii) fees or other charges that:
(A) are limited in amount to the approximate cost of services rendered; and
(B) do not represent direct or indirect protection for domestic goods or a taxation of imports for fiscal purposes; and
(iii) other duties and charges pursuant to Article III:2 of the GATT 1994, levied at the time of importation imposed consistently with Article 5 (National Treatment on Internal Taxation and Regulation);
(c) days means calendar days, including weekends and holidays;
(d) GATS means the General Agreement on Trade in Services, which is part of the WTO Agreement;
(e) GATT 1994 means the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(f) goods and products shall be understood to have the same meaning unless the context otherwise requires;
(g) originating goods of the other Party refers to goods of the other Party that are treated as originating goods in accordance with Chapter 4 (Rules of Origin);
(h) other duties and charges refers to those provided for in subparagraph (b) of paragraph 1 of Article II of the GATT 1994;
(i) WTO means the World Trade Organization; and
(j) WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on 15 April 1994.
2. In this Agreement, all words in the singular shall include the plural and all words in the plural shall include the singular, unless otherwise indicated in the context.
Chapter 3. Trade In Goods
Article 4. Scope and Coverage
This Chapter applies to trade in goods between the Parties, unless otherwise provided.
Article 5. National Treatment on Internal Taxation and Regulation
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of the GATT 1994. To this end, the provisions of Article III of the GATT 1994 shall, mutatis mutandis, be incorporated into and form an integral part of this Agreement.
Article 6. Customs Duties
1. The tariff lines that are subject to the tariff reduction or elimination programme under this Agreement are all the tariff lines covered under the Normal Track, as specified in Article 3(2)(a) of the Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations and the People's Republic of China done on 29 November 2004 (the "ASEAN-China Trade in Goods Agreement"), read with Annex 1 thereof. In the case of Singapore, this Agreement shall also include all tariff lines covered under the Sensitive Track, as specified in Article 3(2)(b) of the ASEAN-China Trade in Good Agreement, read with Annex 2 thereof (1).
2. Except as otherwise provided in this Agreement, and subject to paragraph 1 as well as a Party's Tariff Elimination Schedule as set out in Annex 1 (Tariff Elimination Schedules), on the date of entry into force of this Agreement, each Party shall eliminate its customs duties on originating goods of the other Party.
3. Except as otherwise provided in this Agreement, either Party shall not increase any existing duty or introduce a new customs duty on an originating good of the other Party.
Article 7. Accelerated Tariff Elimination
1. At the request of either Party, the Parties shall consult to consider accelerating the elimination of customs duties on originating goods as set out in their Tariff Elimination Schedules in Annex 1 (Tariff Elimination Schedules).
2. An agreement by the Parties to accelerate the elimination of customs duties on originating goods shall supersede any duty rate determined pursuant to their Schedules for such goods, and shall enter into force following approval by each Party in accordance with their applicable legal procedures.
3. A Party may at any time accelerate unilaterally the elimination of customs duties on originating goods of the other Party set out in its Tariff Elimination Schedule. A Party considering doing so shall inform the other Party as early as practicable before the new rate of customs duty takes effect.
Article 8. Quantitative Restrictions and Non-tariff Measures
1. Each Party undertakes not to maintain any quantitative restrictions at any time unless otherwise permitted under the WTO disciplines.
2. Neither Party shall 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 other provisions of this Agreement.
3. Each Party shall ensure the transparency of its non-tariff measures permitted under paragraph 1 above and that they are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to trade between the Parties.
Article 9. State Trading Enterprises
Nothing in this Agreement shall be construed to prevent a Party from maintaining or establishing a state trading enterprise in accordance with Article XVII of the GATT 1994.
Chapter 4. Rules of Origin
Article 1. Definitions
For the purposes of this Chapter:
(a) aquaculture refers to the farming of aquatic organisms including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding, protection from predators, etc;
(b) fungible products and materials refers to goods or materials which are interchangeable for commercial purposes, whose properties are essentially identical, and between which it is impractical to differentiate by a mere visual examination;
(c) generally accepted accounting principles refers to the recognised accounting standards of a Party with respect to the recording of revenues, expenses, costs, assets and liabilities, the disclosure of information and the preparation of financial statements. Those standards may encompass broad guidelines of general application as well as detailed standards, practices and procedures;
(d) material refers to ingredients, parts, components, subassembly and/or goods that were physically incorporated into another good or were subject to a process in the production of another good;
(e) non-originating material refers to a material that has not satisfied the requirements of this Chapter;
(f) originating materials or originating goods refers to materials or goods which qualify as originating in accordance with this Chapter;
(g) producer refers to a person who engages in the production of a good;
(h) Product Specific Rules are rules that specify that the materials have undergone a change in tariff classification, or undergone a specific manufacturing or processing operation, or satisfy an ad valorem criterion, or a combination of any of these criteria;
(i) production refers to methods of obtaining goods including growing, mining, harvesting, raising, breeding, extracting, gathering, collecting, capturing, fishing, trapping, hunting, manufacturing, producing, processing or assembling a good; and
(j) used means spent or consumed in the production of products.
Article 2. Origin Criteria
For the purposes of this Agreement, products imported by a Party shall be deemed to be originating and eligible for preferential concessions if they conform to the origin requirements under any one of the following:
(a) products which are wholly obtained or produced as set out and defined in Article 3 (Wholly Obtained Products);
(b) products which are produced entirely in one or both Parties, exclusively from originating materials; or
(c) products which are produced from non-originating materials, provided that said products are eligible under Article 4 (Regional Value Content), or Article 6 (Product Specific Rules); and satisfy all other applicable requirements of this Chapter.
Article 3. Wholly Obtained Products
For the purposes of this Agreement, the following shall be considered as being wholly produced or obtained in a Party:
(a) plant (1) and plant products harvested, picked or gathered there;
(b) live animals (2) born and raised there;
(c) products (3) obtained from live animals referred to in sub-paragraph (b) above;
(d) products obtained from hunting, trapping, fishing, aquaculture, gathering or capturing conducted there;
e) minerals and other naturally occurring substances, not included in subparagraphs (a) to (d), extracted or taken from its soil, waters, seabed or beneath their seabed;
(f) products taken from the waters, seabed or beneath the seabed outside the territorial waters of that Party, provided that that Party has the rights to exploit such waters, seabed and beneath the seabed in accordance with international law;
(g) products of sea fishing and other marine products taken from the high seas by vessels registered with a Party or entitled to fly the flag of that Party;
(h) products processed and/or made on board factory ships registered with a Party or entitled to fly the flag of that Party, exclusively from products referred to in sub-paragraph (g) above;
(i) articles collected in the territory of that Party that can no longer perform their original purpose nor are capable of being restored or repaired and are fit only for disposal or recovery of raw materials, or for recycling purposes (4);
(j) goods obtained or produced in a Party solely from products referred to in sub-paragraphs (a) to (i) above.
Article 4. Regional Value Content
1. The regional value content of a good shall be calculated on the basis of the following method:
RVC = V - VNM / V x 100
where:
RVC means the regional value content expressed as a percentage;
V means the value of the good, as defined in the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, adjusted on an FOB basis; and
VNM shall be:
(i) the Cost, Insurance and Freight (CIF) value at the time of importation of the materials; or
(ii) the earliest ascertained price paid for the materials of undetermined origin in the territory of the Party where the working or processing takes place.
2. The percentage of regional value content shall not be less than 40%, except for the goods listed in Annex 2 (Product Specific Rules), which shall comply with the Product Specific Rules as provided under Article 6 (Product Specific Rules).
3. The value of the non-originating materials used by the producer in the production of a good shall not include, for purposes of calculating the regional value content of the good, pursuant to paragraph 1, the value of non-originating materials used to produce originating materials that are subsequently used in the production of the good.
4. When the producer of the good acquires a non-originating material within the Party’s territory where it is located, the value of such material shall not include freight, insurance, packing costs, and any other costs incurred in transporting the material from the supplier’s warehouse to the producer’s location.
Article 5. Cumulative Rule of Origin
Where originating goods or originating materials of a Party are incorporated into a good in the other Party's territory, the goods or materials so incorporated shall be regarded to be originating in the latter's territory.
Article 6. Product Specific Rules
Products which have undergone sufficient transformation in a Party shall be treated as originating goods of that Party. Products which satisfy the Product Specific Rules provided for in Annex 2 (Product Specific Rules) shall be considered as goods to which sufficient transformation has been carried out in a Party.
Article 7. De Minimis
A good that does not meet tariff classification change requirements, pursuant to the provisions of Annex 2 (Product Specific Rules), shall nonetheless be considered to be an originating good if:
(a) the value of all non-originating materials used in the production of the product, which do not undergo the applicable change in tariff classification or fulfil any other condition set out in Annex 2 (Product Specific Rules), does not exceed 10% of the FOB value of the product; and
(b) the product meets all other applicable requirements provided in this Chapter for qualifying as an originating product.
The value of such non-originating materials shall, however, be included in calculating the value of the non-originating materials for any applicable qualifying value content requirement for the product.
Article 8. Minimal Operations and Processes
1. The following operations undertaken by themselves shall be considered as insufficient working or processing to confer the status of originating products:
(a) preserving operations to ensure that the products remain in good condition during transport and storage;
(b) breaking-up and assembly of packages;
(c) washing, cleaning, removal of dust, oxide, oil, paint or other coverings;
(d) ironing or pressing of textiles;
(e) simple painting and polishing operations;