Title
Free Trade Agreement between the Government of the Republic of Peru and the Government of the Republic of Chile
Amending and replaces the ECA No. 38, its annexes and appendices, protocols and other instruments that have been concluded thereunder
Preamble
Preamble
The Government of the Republic of Peru and the Government of the Republic of Chile, hereinafter referred to as the parties; whereas:
The will to strengthen the special bonds of friendship, solidarity and cooperation between their peoples;
The development of their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization and the Montevideo Treaty 1980, as well as other bilateral and multilateral instruments of cooperation and integration to which they are party;
The need to strengthen the integration process in Latin America, in order to achieve the objectives set out in the Montevideo Treaty 1980, through the conclusion of bilateral and multilateral agreements the widest possible;
The active participation of Chile and Peru in the Latin American Integration Association (ALADI), as well as in the Asia-Pacific Economic Cooperation (APEC);
Peru's participation in the Cartagena Agreement and commitments resulting therefrom for this country;
The revitalization efforts of integration in the Americas, showing the need for complementarity económicacomercial aimed at enhancing open regionalism, inserting efficiently in a globalized world and initiatives of regionalisation elsewhere;
The need to achieve a better balance in their trade relationship;
The overlap of economic and trade liberalization of both countries, both tariff matters as the elimination of restrictions no-arancelarias and in the guidelines of their economic policies;
The advantages of giving operators clear and predictable rules for the development of trade in goods and services, as to the flow of investments;
The importance for the economic development of both parties have adequate cooperation in the areas of production of goods and services; the desirability of achieving a more active participation of economic operators in the two countries;
The creation of new employment opportunities, the improvement of working conditions and living standards in their respective territories;
The foregoing engage in a manner consistent with the protection and conservation of the environment;
Agree to conclude the following agreement,
Body
Chapter 1. Initial Provisions
Article 1.1. Establishment of a Free Trade Area
1. The Parties to this Agreement in accordance with Article XXIV of the General Agreement on Tariffs and Trade 1994 article V of the General Agreement on Trade in Services and the Montevideo Treaty 1980 establishing a free trade area.
2. To this end, amended and replace the ECA No. 38, its annexes and appendices, protocols and other instruments that have been concluded thereunder, by the following text of the Free Trade Agreement.
Article 1.2. Objectives
1. The objectives of this agreement, developed more specifically through its Principles and Rules, including the national treatment and most favoured nation treatment and transparency, are the following:
(a) Promote under conditions of equity, balanced and harmonious development of the Parties;
(b) Intensify economic and trade relations between the parties, and encourage the expansion and diversification of trade between them;
(c) Encourage coordinated action in international economic forums, as well as in relation to the industrialized designed to improve the access of goods of parties to world markets;
(d) Eliminate barriers to trade and facilitate the cross-border movement of goods and services between the parties;
(e) Promote conditions of fair competition in the Free Trade Area;
(f) Substantially increase investment opportunities in the territories of the Parties;
(g) Promote investments aimed at an intensive use of the markets of the Parties and strengthen their competitiveness in the global exchanges;
(h) Establish guidelines for further cooperation between the parties, as well as at the regional and multilateral cooperation to expand and enhance the benefits of this Agreement;
(i) Create effective procedures for the implementation and application of this Agreement, for its joint administration and to prevent and resolve disputes;
(j) To prevent distortions in their reciprocal trade; and
(k) Promoting economic cooperation and complementarity.
2. The Parties shall interpret and apply the provisions of this Agreement in the light of the objectives set out in paragraph 1 and in accordance with applicable rules of international law.
Chapter 2. General Definitions
Article 2.1. Definitions of General Application
For the purposes of this Agreement and, unless otherwise specified:
ACE 38 means the economic complementarity agreement signed between the Republic of Chile and the Republic of Peru on 22 June 1998;
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights related to trade, which is part of the WTO agreement;
Customs valuation agreement means the Agreement on Implementation of article VII of the General Agreement on Tariffs and Trade 1994, which is part of the WTO agreement;
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, dated 15 April 1994; Safeguards Agreement means the Agreement on Safeguards, which is part of the WTO agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, which is part of the WTO agreement;
TBT Agreement means the Agreement on Technical Barriers to Trade, which is part of the WTO agreement;
GATS means the General Agreement on Trade in Services, which is part of the WTO agreement;
ALADI means the Latin American Integration Association established by the Montevideo Treaty 1980;
Chapter refers to the first two digits of the Harmonized System for the description and coding or the naladisa nomenclature.
Commission manager means that established in accordance with article 15.1 (commission administering);
Public procurement means the process by which a Government obtains the use of goods or acquires or services. or any combination thereof, for governmental purposes and not with a view to commercial resale or sale or use in the production or supply of goods or services for commercial resale or sale;
Calendar days means calendar days, or schedule;
Enterprise means any entity constituted or organized under the applicable law, whether or not for profit and whether private or government owned, society, including any Trust Company, participation, sole proprietorship, co-investment or other association;
Enterprise of a party constituted means an enterprise or organized under the law of a party;
State Enterprise means an enterprise that is owned by a party or under the control of the same ownership rights; through existing means in effect on the date of Entry into Force Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, which is part of the WTO agreement;
Covered investment means a Party with respect to an investment in its territory of an investor of the other Party on the date of Entry into Force Agreement, or acquired established or expanded thereafter;
Measure includes any law, regulation, procedural requirement or practice;
Goods or goods, article means any material, goods or product;
Goods of a Party means domestic products as these are understood in GATT 1994 or goods such as the parties may agree, and includes originating goods of that Party. A good of a Party may include materials of non- Party
Goods originating means goods that complies with the established in Chapter 4 (rules of origin);
National means a natural person who has the nationality of a Party according to its Constitution or a permanent resident of a party;
NALADISA identifies the tariff nomenclature of the Latin American Integration Association, based on the Harmonized System for the description and coding;
WTO means the World Trade Organization;
Heading refers to the first four digits in the nomenclature of the Harmonized System naladisa; or
Means any State Party for which this Agreement has entered into force;
Person means a natural person or an enterprise;
Party means a person of a national or an enterprise of a party;
Release programme means the programme laid down in article 3.2 (release programme);
Section means a section of the Harmonized System nomenclature NALADISA; or
Harmonized System (HS) means the Harmonized Commodity Description and Coding System of goods, including its general rules of interpretation, and notes to section notes chapter, in the form in which the parties have adopted and implemented in their respective laws of tariffs;
Subheading means the first six digits in the nomenclature of the Harmonized System naladisa; or
1980 Montevideo treaty means the Agreement Establishing the Latin American Integration Association (ALADI); and
Preferential tariff treatment means the tariff relief under the programme of trade liberalization an applicable to goods originating in accordance with this Agreement.
Article 2.2. Country-specific Definition
Territory means:
(a) Peru with respect to the mainland, islands and the surrounding maritime and air space under its sovereignty or sovereign rights and jurisdiction in accordance with international law and its domestic law; and
(b) With regard to Chile, the Land, Sea and Air Space under its sovereignty and the exclusive economic zone and the continental shelf over which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law.
Chapter 3. Trade In Goods (1)
Article 3.1. National Treatment
Each Party shall, in its territory to the National Treatment goods of the other Party in accordance with article III of the GATT 1994, including its interpretative notes. In this context, they shall be accorded treatment no less favourable than that applicable to goods in respect of similar national taxes, fees or other charges, as well as other domestic laws, regulations and rules relating to the sale, purchase, distribution and use of them in the domestic market.
Article 3.1. Programme of Release (2)
1. No Party shall maintain or apply new non-tariff restrictions on the importation or exportation of goods from its territory to the territory of the other party, either through licences, or through other measures, without prejudice to Article 50 of the Montevideo Treaty 1980 and Articles XX and XXI of the GATT 1994.
2. For the purpose of this agreement the term "restrictions" any measure of administrative, financial, exchange or of any kind, through which prevents or hinders a party, by unilateral decision, its imports.
3. The parties agree to free of charge their reciprocal trade according to the following schedule of tariff relief:
a) A total of drawback import charges for the reciprocal trade from 1 July 1998 to goods in NALADISA nomenclature contained in Annex 3.2-a., marked D-0.
b) Goods in the NALADIDA nomenclature included in Annex 3.2-a marked D-5, shall be subject to the following schedule of relief:
[Tax deduction tables have been omitted.]
4. The concessions provided for in this article shall be applied on the CIF value or the customs value, as appropriate, in accordance with the agreement on customs valuation.
5. If a Party at any moment reduces its tariff charges to third countries for one or more goods under this Agreement, shall adjust the charge applicable to the reciprocal trade in accordance with the established margin of preference proporcionalidades (reference) identified in subparagraphs in paragraph 3, as appropriate.
6. The Parties shall, at the time of signature of this agreement existing tariffs and shall be kept informed by the competent bodies, on the subsequent amendments.
7. The goods used does not benefit from the scheme established in this Agreement, including those that are specific to the nomenclature naladisa subheading.
8. The Parties shall, within the framework of the administrative commission may accelerate the schedule of tariff relief for those groups of goods or goods as mutually agreed.
9. For the purpose of this agreement the term "taxes" customs duties and other charges of equivalent effect, fiscal, monetary, exchange-rate or of any nature that focus on imports are not included in this concept fees and similar charges commensurate with the cost of when the actual services rendered.
10. The Parties shall not adopt or maintain taxes and charges of equivalent effect other than Customs duties affecting the bilateral trade under this Agreement. However, it may maintain existing taxes and charges at the date of signature of the Agreement and which are reflected in additional notes to this Agreement, but not to increase the incidence. The said notes are found in Annex 3.2-C.
Fees and charges of equivalent effect identified in the above-mentioned additional notes shall not be subject to the programme.
11. In the use of the price band system established in Chile, or specific rights variables in force in Peru, relating to the importation of goods, the parties undertake within the scope of this agreement not to include new goods or to modify the mechanisms or applied in a manner that would mean a deterioration of conditions for access to their respective territories.
The agenda for the release of this Agreement shall not apply on specific rights derived from the above-mentioned mechanisms.
The Parties included in Annex 3.2-D of this agreement the list of goods which are incorporated in the aforementioned systems.
12. Without prejudice to the WTO Agreement, the Parties shall not apply to trade reciprocal charges on exports.
Article 3.3. Customs Valuation
The Customs Valuation Agreement shall govern the customs valuation rules applied to trade between the parties.
Article 3.4. Free Zones
The goods produced or from a free zone or companies who enjoy the benefits of user of free zone, in accordance with the national legislation of the Parties, shall be excluded from the agenda for release of this Agreement. Such goods shall be duly identified.
Chapter 4. Rules of Origin
Article 4.1. Scope
1. This law lays down the rules of origin applicable to trade in goods between the parties for the purposes of:
(a) Qualification and determining the originating goods;
(b) The issuing of the certificate of origin; and
(c) Verification process, supervision and sanctions.
2. The Parties shall apply to the goods subject to the programme of trade liberalization of this agreement the rules of origin, without prejudice to the same may be amended by a decision of the Commission.
3. Access to the programme of the goods release must demonstrate compliance with the provisions of this Law. This requirement shall only for goods that require preferential treatment.
Article 4.2. Qualification of Origin
Except as otherwise provided in this chapter shall be considered as originating:
(a) The goods produced entirely in the territory of the Parties when it would be used solely and exclusively from materials originating from one or both parties;
(b) United goods obtained from the mineral extracted in the territory of a party;
(c) The vegetable products harvested or gathered in the territory of a party;
(d) The goods animal born and raised in the territory of a party;
(e) Goods obtained from hunting or fishing in the territory of a party;
(f) The goods obtained from the sea outside the territory of a Party of vessels by their flags, leased or leased by a company established in the territory of any of the Parties, provided that such vessels or registered in accordance with their respective national legislation;
(g) Factory produced goods on board ships from the goods referred to in subparagraph (f), of vessels by their flags, leased or leased by a company established in the territory of any of the Parties, provided that such vessels or registered in accordance with their respective national legislation;
(h) Goods obtained by a natural or juridical person of a party or of a Party from the seabed or marine subsoil outside their territorial waters provided that such a natural or legal person or a party has rights to exploit such or marine seabed and subsoil;
(i) The goods using non-originating materials provided that may result from a process of production or processing carried out in the parties that gives rise to a new individuality. This principle is present in the fact that the goods are classified in a heading other than those materials as naladisa nomenclature.
Notwithstanding the preceding paragraph shall not be regarded as originating goods that despite being classified in different headings materials, as a result of the operations provided for in Article 4.3 carried out by the parties, by the acquiring the final form in which they are marketed, where such operations using non-originating materials. Nothing in this paragraph shall not constitute a process of production or processing.
(j) Goods which do not satisfy the applicable change in tariff classification because the process of production or processing does not change in the heading to nomenclature naladisa provided that the CIF value destination port or CIF seaport non-originating materials does not exceed 50 per cent of the FOB value of the goods.
(k) Goods resulting from assembling or assembly operations carried out within the territory of the Parties, using non-originating materials, having or not to change heading, provided that the CIF value destination port or CIF seaport non-originating materials does not exceed 50 per cent of the FOB value of the goods.
(l) The games or sets of goods, provided that each of the goods contained therein comply with the rules set out in this chapter.
(m) The goods meet the requirements specified in accordance with Article 4.5.
Article 4.3. Minimal Operations
The following operations alone do not confer origin:
(a) Operations to ensure the preservation of goods such as: aeración, ventilation, refrigeration, freezing or addition of substances; removal of damaged parts;
(b) dusting, shaking, shelling, shelling, shelling, shelling, maceration, drying, thinning, sorting, grading, grading, sorting, fractioning, washing or cleaning, painting and trimming
(c) The formation of sets or sets of goods;
(d) Packaging, wrapping reenvase; or
(e) The Division or assembly of packages or parcels;
(f) The implementation of labels or marks, like other goods or distinguishing signs on their packaging;
(g) Mixtures of materials; dilution in water or other substances, dosage, provided that the characteristics of the goods obtained are not essentially different from the characteristics of the materials which have been mixed;
(h) The meeting or assembly of parts, assembled to constitute a complete product;
(i) The mere slaughter of animals; and
(j) The combination of two or more operations.
Article 4.4. Packing and Packaging
1. Packings, containers, cases, crates, packages, wrappings and the like, presented containing the respective goods, shall be considered originating if the principal merchandise meets the origin criteria of this Chapter.
2. This provision shall not apply in respect of cases, packaging, boxes, packaging and similar, when they are presented separately to him or the goods containing its essential character.
Article 4.5. Specific Requirements of Origin
1. The parties may agree on the establishment of specific requirements of origin in cases where the general rules are not appropriate to qualify the origin of a product or group of goods. The specific requirements of origin shall prevail over the general criteria.
2. The goods with specific requirements are included in Annex 4.5.