Each Party shall adopt or maintain measures to impose administrative sanctions, civil and penal, where appropriate, for breach of its customs laws and regulations, including those governing the tariff classification and customs valuation and rules of origin requirements for preferential tariff treatment under this Agreement.
Article 5.10. Advance Rulings
1. Each Party shall, prior to the importation of a good into its territory, shall deliver a written advance ruling at the written request of an importer in its territory or an exporter or producer in the territory of the other party with respect to:
(a) Tariff classification;
(b) Whether a good qualifies as goods originating in accordance with chapter 4 (rules of origin); or
(c) Other matters as the parties agree.
2. Each Party shall issue an advance ruling within 150 days of the request, provided that the requester has submitted all information that requires the party, including, if requested, a sample of the goods to which the applicant is a request for an advance ruling. To issue an advance ruling, the Party shall take into account the facts and circumstances presented by the applicant.
3. Each Party shall provide that advance rulings will enter into force from the date of its issuance or such other date specified in the resolution, up to a maximum period of three years, provided that the facts or circumstances on which the ruling is based have not changed.
4. The Party issuing may modify or revoke an advance after the ruling party notifies the applicant when facts or circumstances, such as where the information on which the ruling is based is false or inaccurate.
5. When an importer requesting the treatment accorded to an advance ruling pursuant to the goods, the Customs Authority may evaluate whether the facts and circumstances of the importation are consistent with the facts or circumstances on which the advance ruling was based.
6. Each Party shall make its advance rulings publicly available, subject to any confidentiality requirements in its legislation in order to promote the consistent application of advance rulings to other goods.
7. If a requester provides false information or enforced relevant circumstances or facts in its request for an advance ruling, or has not acted in accordance with the terms and conditions of the resolution, the importing party may apply appropriate measures, including civil, criminal and administrative penalties or other sanctions.
Article 5.11. Committee on Tariff Classification
1. The Committee of tariff classification shall be responsible for advising on differences that arise in respect of the tariff classification between the parties.
2. The Committee shall be established by administering the Commission at the request of the Parties and shall act in accordance with the rules of procedure adopted by the latter.
3. For the purposes of issuing its recommendation, the Committee may consult in ALADI or to the direction of nomenclature and Trade of the World Customs Organization.
4. The Committee shall transmit to the Commission The administering its recommendation within a period of 30 days unless the Committee decides otherwise, for administering its adoption, if deemed appropriate.
Article 5.12. Implementation
1. For the purposes of the implementation of the obligations relating to:
(a) 5.1.1 publication articles and 5.1.2: 2 years;
(b) Articles 5.2 release, (b) and 5.2 (c): 1 year;
(c) Article 5.7 express shipments; (d): 2 years; and
(d) - Article 5.10 advance rulings (b): 3 years.
2. The time limits specified in paragraph 1 (b), (c) and (d) shall be counted from the Entry into Force of the Agreement on the promotion of trade between Peru and the United States of America, on 12 April 2006.
Chapter 6. Procedure for the Application of Safeguards (1)
Article 6.1. Bilateral Safeguard
1. A Party may apply a bilateral safeguard measures, if under procedures established under this scheme, as a result of unforeseen circumstances and particularly the effect of tariff concessions agreed, increases the importation of goods originating into its territory of the other party in absolute terms or relative to domestic production and under such conditions that the imports of such goods, constitute a substantial cause of serious injury or threat thereof to a domestic industry producing a like or directly competing goods. The party into whose territory the good is being imported may to the minimum extent necessary to remedy or prevent the injury:
(a) Suspend any further reduction of the rate of duty provided for under this Agreement for the product;
(b) Partially reduce the margin of preference achieved by the programme of relief;
(c) Increasing the tariff rate for the good to a level not to exceed the lesser of
(i) The tariff rate applied to the most favoured nation at the time the measure is taken; or
(ii) The tariff rate applied to the most favoured nation on the day immediately preceding the Entry into Force Agreement.
2. The proceeding that may result in the application of a safeguard measure under paragraph 1 are subject to the following conditions:
(a) The Parties shall promptly notify in writing the other party of the initiation of a proceeding that could result in the application of a safeguard measure against a good originating in the territory of the other party seeking to conduct consultations;
(b) Any such action shall be initiated no later than one year from the date of initiation of the proceeding; and
(c) The safeguard measures shall be applied for a period of up to two years, including the time at which would have been in effect provisional measures.
If the grounds on which the safeguard measure may be extended by one year for which will be provided to the other party the corresponding justification, 30 days in advance.
During the period of extension of the measure is lower than the original. The Parties shall consult, prior to the adoption of the extension, to review the effectiveness of the relaxation of the measure extended. The party applying the extension shall provide evidence that the industry concerned is adjusting;
(d) A Party that has applied to goods originating safeguard measures of the other party, may not be applied again to the import of those goods, unless it has elapsed non-application equal to the period of validity of the measure and which in any case shall not be less than 24 months;
(e) At the end of the period of application of the measure, the tariff shall apply to the goods covered by the same State, shall have effect as if the measure has not been applied, in accordance with the scheme set out in the Agreement;
(f) The safeguard measures applied in accordance with the provisions of this chapter shall not affect trade transactions.
3. The imposition of a safeguard measure not reduce the imports in question below the average of imports during the last three years for which statistics are available, unless there is a clear justification of the need for a different level to prevent or remedy the serious damage.
Article 6.2. Provisional Safeguard
1. In critical circumstances where any delay involves a damage which it would be difficult to repair, the party applying a measure in accordance with article 6.1, may take a provisional safeguard measure pursuant to a preliminary determination but objective of the existence of a clear evidence that increased imports have caused or threatened to cause serious injury to a domestic industry. Immediately after the provisional safeguard measure shall be notification and its justification, the affected party may request consultations pursuant to Article 6.1.2 (a).
2. The duration of a provisional safeguard measure shall not exceed 180 days and shall take any of the forms set out in article 6.1.1.
3. No provisional safeguard measures shall be applied to products whose imports have been subject to such a measure during the 24 months immediately preceding.
4. In the case of goods covered in 3.2-a 3.2-b in schedules and annexes of relief to 10, 15 and 18, exceptionally, a party may apply temporary special measures for a period of 60 days, when a reduction of export prices of such magnitude of goods originating on the other party to demonstrate objectively within that period, a threat of serious injury to a domestic industry producing a like or directly competing goods of the importing Party. In order to proceed with the implementation of a provisional measure up to a total maximum 180 days, the Parties shall apply and fulfil the requirements set out in this article.
The party applying a special safeguard, may not invoke it back up to 360 days have elapsed since the adoption of the measure.
5. If the subsequent investigation determines that the reasons invoked for the application of the measure, not have caused or threatened to cause serious injury to a domestic industry, shall be promptly refunded as of the provisional measures shall be released or security established by this concept, as appropriate.
6. During the period of application of the provisional measures shall comply with the relevant provisions of Articles 6.1 6.4, 6.5, 6.6 and 6.7.
Article 6.3. Global Safeguards
1. Each Party retains its rights and obligations under article XIX of GATT 1994 and the Agreement on Safeguards.
2. Any exception in the application of measures taken pursuant to Article XIX of GATT 1994 and the Agreement on Safeguards, which are afforded by a party to a non- Party shall, in the circumstances and conditions to be granted automatically exception to the other party.
3. A Party shall promptly notify in writing the other party of the initiation of a proceeding that could result in the application of a safeguard measure. In this regard, neither party may apply a measure referred to in paragraph 1 to impose restrictions on a good benefit from the agreement without prior written notification to the Commission.
Article 6.4. Procedures Concerning Safeguarding Measures
1. The Parties shall not apply in their mutual trade; safeguards article 6.1 and 6.3 simultaneously.
2. The parties may only apply a tariff of safeguard measures in their reciprocal trade.
3. Each Party shall establish or maintain procedures equitable, timely, transparent and effective for the application of safeguard measures in accordance with the requirements set out in Article 6.7.
4. For the adoption of safeguard measures, each Party shall entrust determinations of serious injury or threat thereof to a competent investigating authority.
Article 6.5. Settlement of Disputes Concerning Safeguarding Measures
Neither party may have recourse to the dispute settlement procedure under chapter 16 (Dispute Settlement), before the safeguards are effectively implemented.
Article 6.6. Definitions
For purposes of this chapter:
The threat of serious injury means clearly imminent serious injury which shall be based on facts and not merely on Pleadings, conjecture or remote possibility;
The competent investigating authority means investigating a competent authority of a party, which shall be notified to the Commission by the administering;
Critical circumstances mean circumstances where delay would cause difficult to repair damage, in the area of domestic production; serious injury means a significant overall impairment of a branch of domestic production;
Absolute increase means a significant increase in imports over the trend over recent representative a base period;
Increase in relation to domestic production means an increase of the participation of preferential imports with regard to national production; and
Branch of the domestic industry means the producers as a whole of the like or directly competing goods operating in the territory of one of the Parties.
Article 6.7. Procedures Concerning the Administration of Safeguard Measures
Initiation of proceedings
1. The procedures for the adoption of safeguard measures may be initiated by request of an entity or entities shall be representative, in terms which constitutes a major proportion of the total domestic production of the prod ucción that produces like or directly competing goods imported goods.
2. A Party may initiate proceedings ex officio requesting the competent investigating authority is carried out.
Content of the application
3. If the investigation is conducted at the request of an entity representative of a branch of domestic production, at the request of the applicant shall provide the following information to the extent that such information is publicly available and can be obtained from governmental sources or other, and in the event that is not available, shall provide the best estimates that may carry out on such information as well as the foundations underpinning these estimates:
(a) Description of goods: the name and description of the imported goods in question, the tariff subheading which is classified and the current tariff treatment and the name and description of the like or directly competing national goods;
(b) Representativeness
(i) The names and addresses the request of the submitting entities, as well as the locations of the establishments in which they produce the domestic goods in question,
(ii) The percentage of domestic production of the like or directly competing goods that such entities account for and the basis for claiming that they are representative of an industry; and
(iii) The names and locations of all other establishments in which the domestic like or directly competing goods;
(c) Figures on Importation: import data for not less than 3 and not more than five years later;
(d) Figures on domestic production: data on total domestic production of the like or directly competing goods, for the period referred to in subparagraph (c);
(e) Data showing injury - quantitative and objective indicators denoting the nature and extent of injury to an industry in question, such as the showing changes in the level of sales, productivity, prices, production capacity utilisation, market share, profits or losses, and employment;
(f) A cause of injury - an enumeration and description of the alleged causes of injury or threat thereof, and a summary of the basis for the claim that the increased imports of such goods, either in absolute terms or relative to domestic production, is the cause of serious injury or threat thereof, supported by relevant information; and
(g) Criteria for inclusion - quantitative and objective data indicating the share of imports from the territory of the other party as well as the considerations of the applicant on the extent to which such imports are contributing importantly to the serious injury or threat thereof.
Notification requirement
4. To initiate a procedure for the adoption of safeguard measures, the competent investigating authority shall publish notice of the initiation of the same in the Official Journal of the party. The notification shall contain the following information: the name of the applicant; the indication of the imported goods subject to the proceeding and its tariff subheading; the nature and timing of the determination to be institutionalized; the time limits for the submission of reports, statements and other documents to the competent investigating authority; where the application and other documents submitted during the proceeding may be inspected; and the name, address and telephone number of the office where additional information is available.
5. Where a procedure for the adoption of safeguard measures shall be instituted by a petition filed by an entity alleging be representative of a branch of domestic production, the competent investigating authority shall not publish the notice required in paragraph 4 if the application without carefully evaluating complies with the requirements established in paragraph 3, including representativeness.
Confidential information
6. Once submitted applications, they shall be made public. The competent investigating authority shall not disclose any information in its report has been provided on a confidential or that is committed to maintain such during the proceeding.
The competent investigating authority shall adopt or maintain procedures for the management of information provided to it as confidential and that is protected by the national legislation, which is provided in the course of the proceedings and shall require the interested parties to provide such information by delivery of written non-confidential summaries thereof.
The non-confidential summaries shall allow a reasonable understanding of the information provided on a confidential basis. If the parties concerned are unable to summarize this information, explain the reasons preventing it.
Evidence of injury and causation
7. In conducting its proceeding the competent investigating authority shall obtain all relevant information for the relevant resolution. Evaluate relevant factors of an objective and quantifiable nature affecting the status of that branch of domestic production, including the amount and rate of the increase in imports of the good concerned in absolute and relative terms as appropriate; the share of imports covered by the domestic market; and changes in the level of production, sales, productivity, utilisation of capacity, profits or losses, and employment. For its decision, the competent investigating authority may also consider other economic factors such as changes in prices and inventories and the ability of firms in the industry to generate capital.
8. The competent investigating authority shall not make an affirmative injury unless its investigation'proving based on objective evidence, the existence of a clear causal link between increased imports of the good concerned and serious injury or threat thereof. Except as provided in Article 2.4, factors other than when increased imports are causing the injury to a domestic industry, such injury shall not be attributed to the increased.
Deliberation and report
9. In accordance with the laws and practices of each party, the competent investigating authority shall make available to any interested party and the general public a report containing background and rationale non-confidential taken into consideration the findings and to achieve reasoned conclusions on all pertinent issues of law and fact. Furthermore, a summary thereof, in conjunction with that resolution provides for the application of the measure adopted, shall be published in the Official Journal of the party applying the measure.
Chapter 7. Anti-dumping and Countervailing Duties
Article 7.1.
1. The parties condemn any unfair trade practice and undertake to eliminate the measures that may cause to bilateral trade distortion.
2. In this regard, undertake not to grant new export subsidies affecting trade between the parties and not later than 31 December 2002, do not apply to the reciprocal trade under the release of this Agreement, incentives programmes or that constitute export subsidies. The programme shall not apply to products which after the liberation, 31.12.2002 enjoy export subsidies.
Article 7.2.
1. If in the reciprocal trade distortions arising from the application of export subsidies or grants actionable according to the WTO and other unfair trading practices, the affected country may apply the measures provided for in its national legislation. Without prejudice to the foregoing be conducted simultaneously, an exchange of information through the competent national authorities referred to in annex 15.1.1.
2. The Parties shall apply their rules and procedures in these fields, in accordance with the GATT 1994 and the WTO Agreement.
Chapter 8. Competition Policy
Article 8.1. Objectives
1. Recognizing that conduct subject to this chapter have the potential to restrict trade, the Parties consider that such anti-competitive conduct by proscribing, implementing policies of free competition and cooperation, will help ensure the benefits of this Agreement.
2. In this regard, the parties undertake to apply their respective competition laws in a manner consistent with this chapter so as to avoid that the benefits of the liberalisation of trade in goods, services and investment may be reduced or cancelled by anti-competitive practices. To this end, the parties agree to establish cooperation and coordination between their competition authorities under the provisions of this chapter.
3. To prevent distortions or restrictions of competition that may affect trade in goods or services between them, the Parties shall pay special attention to anti-competitive agreements, concerted practices and the abusive behaviour arising out of dominant positions individually or jointly.
4. The parties agree to cooperate and coordinate its proceedings for the enforcement of its laws on competition. This cooperation shall include the notification, consultation, the exchange of information and technical assistance.
Article 8.2. Competition Authorities and Legislation
1. Each Party shall adopt or maintain national legislation on competition to promote economic efficiency and general well-being, proscribing anti-competitive business practices, whether undertaken by public or private enterprises, and shall take appropriate action with respect to such practices.
2. Each Party shall maintain an authority or authorities responsible for the enforcement of its national competition laws. The enforcement policy of the Parties national authorities shall not discriminate against persons on the basis of nationality, in their procedures.
3. The Parties recognize the value of transparency of free competition policies.
4. Each Party shall ensure the application of due process in investigations pertaining to its legislation on competition.
5. Each Party shall maintain autonomy to develop and implement its competition laws.
6. If any exception or exclusion coverage of the rules of competition nationals, each Party shall ensure that they are not engaged in a discriminatory manner and that they do not create anticompetitive effects, directly or indirectly, in the territory of the other party.
7. In case of absence of export cartels, the Parties shall ensure that they are under the coverage of their respective laws of free competition, while developing anti-competitive business practices which generate effects in the territory of the other party.
Article 8.3. Anti-competitive Business Practices with Cross-border Effects
1. The Parties shall have the power to prosecute anti-competitive business practices that arise in its territory, whose effects manifested in the territory of the other party.
2. If a Party finds evidence of anti-competitive business practices generated in the territory of the other party that produce effects in its territory, it may request the other party of the initiation of an investigation.
3. The requested Party shall conduct the investigation in accordance with the procedures laid down in its legislation of free competition.
Article 8.4. Cooperation
1. The parties agree to cooperate in the area of competition policy. The Parties recognise the importance of cooperation and coordination between their respective authorities to ensure the effective application of their laws of fair competition in the Free Trade Area.
2. Effective cooperation for the parties through their competition authorities shall conclude agreements or arrangements for cooperation.
3. With the objective of ensuring the implementation and the implementation of the provisions of this chapter, particularly with regard to the development of mechanisms for cooperation between the competition authorities of the Parties shall establish a working group comprising representatives of each party.
4. The group of T rabajo shall make a report on the status of its work to the Commission by the administering no later than three years following Entry into Force and shall make such recommendations as appropriate for the implementation of future actions.
Article 8.5. Coordination between Competition Authorities
1. In cases involving anticompetitive conduct originating in the territory of a party, in whole or in part, produce or may produce effects, in the territory of the other party, the competition authorities of the Parties may conduct its activities in the application of its laws in close coordination. This cooperation shall not prevent the parties from taking autonomous decisions.
2. "their law enforcement activity means any application of competition laws by investigations or proceedings conducted by the competition authority of a party, that may result in the imposition of penalties or remedies.
Article 8.6. Notifications
1. Each competition authority shall notify the competition authority of the other party of an enforcement activity of its laws that may affect important interests of the other party specifically when such activity:
(a) Concerns anticompetitive conduct that originate in the territory of the other party; or
(b) Concerns anti-competitive acts which produce or may produce effects, in the territory of the other party.
2. Provided that it is not contrary to the free competition legislation of the parties not affect any ongoing investigation, the notification shall take place at an early stage of the procedure. The competition authority of the party who carry out the activity of its implementation of legislation may take into account any comments received from the other party in its decision-making.
3. The notifications provided for in paragraph 1 should be detailed enough to permit an evaluation in the light of the interests of the other party, and shall include, inter alia, the identification of entities or localities involved, specifying the market goods and individuals concerned, and any indication practices which may restrict trade between the parties.
Article 8.7. Consultations
1. To foster understanding between the parties, or to address specific matters that may arise in accordance with this Chapter, each Party shall, at the request of the other party initiate consultations concerning any request to the other party.
2. In its request the Party shall indicate whether it is relevant, how the matter affects bilateral trade. The Party in question shall give consideration to the concerns of the other party without prejudice to its full autonomy to develop and implement its competition laws.
Article 8.8. Information Exchange and Confidentiality
1. With a view to facilitating the effective application of their Competition Laws, the competent authorities of the Parties shall exchange information on any ongoing research on anti-competitive business practices that may affect trade between the parties, including the preliminary phase of the same.
2. The information exchanged only be used as a means of evidence for the effective enforcement of competition laws of the Parties and with respect for the purpose for which it was collected by the sender authority.
3. The Parties may exchange of confidential information. In any case shall not disclose such information without the consent of the party which provided.
4. In particular, when required by the law of a Party may provide confidential information on their respective courts of justice, provided that they maintain confidentiality.
5. In addition to the provisions in chapter 14 (transparency), the parties undertake to exchange information regarding sanctions and remedies applied in cases where anti-competitive acts originate, produce or may produce effects in the territory of the other party. To this end, shall as soon as possible a summary of the case and the text of the resolution.
Article 8.9. Technical Assistance
The Parties may provide each other with mutual assistance in order to benefit from their experiences and strengthen the application of their competition laws and policies.
Article 8.10. State-Owned Enterprises and Enterprises Holding Special or Exclusive Rights, Including Designated Monopolies
1. Nothing in this chapter shall prevent a Party designates or maintaining public or private monopolies according to its legislation. In any case, the effects of economic activity in the territory of the other party, it shall without limitations on the scope of competition law.