Title
UAE-Malaysia Comprehensive Economic Partnership Agreement
Preamble
PREAMBLE
The Government of the United Arab Emirates (hereinafter referred to as the "UAE") and the Government of Malaysia (hereinafter referred to as "Malaysia") (hereinafter being referred to individually as the "Party" and collectively as the "Parties");
RECOGNISING the strong economic and political ties between the UAE and Malaysia, and wishing to strengthen these links through the creation of a free trade area, thus establishing close and lasting relations;
DETERMINED to build on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization;
CONSCIOUS of the dynamic and rapidly changing global environment brought about by globalisation and technological progress that presents various economic and strategic challenges and opportunities to the Parties;
DETERMINED to develop and strengthen their economic and trade relations through the liberalisation and expansion of trade in goods and services in their common interest and for their mutual benefit;
AIMING to promote transfer of technology and expand trade;
CONVINCED that the establishment of a free trade area will provide a more favourable climate for the promotion and development of economic and trade relations between the Parties;
AIMING to facilitate trade by promoting efficient and transparent customs procedures that reduce costs and ensure predictability for their importers and exporters;
DETERMINED to support the growth and development of micro, small, and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;
AIMING to establishing a clear, transparent, and predictable legal and commercial framework for business planning that supports further expansion of trade and investment;
RECOGNISING their inherent right to regulate; and
RESOLVED to preserve the flexibility of the Parties to set legislative and regulatory priorities, and protect legitimate public welfare objectives,
HAVE AGREED as follows:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. General Definitions
For the purposes of this Agreement unless otherwise provided in this Agreement:
(a) Agreement on Agriculture means the Agreement on Agriculture in Annex 1A to the WTO Agreement;
(b) Anti-Dumping Agreement means the Agreement on Implementation of Article VI of the GATT 1994 in Annex 1A to the WTO Agreement;(c)central level of government means:
(i) for the UAE, the federal level of government; and
(ii) for Malaysia, the federal level of government;
(d) Customs Authority means:
(i) for the UAE, the Federal Authority for Identity, Citizenship, Customs & Port Security; and
(ii) for Malaysia, the Royal Malaysian Customs Department;
(e) customs duty means any duty or charge of any kind imposed in connection with the importation of a good, including any form of surtax or surcharge imposed in connection with such importation, but does not include any:(i) charge equivalent to an internal tax imposed in conformity with Article III of theGATT 1994;
(ii) anti-dumping or countervailing duty applied consistently with Article VI of the GATT 1994, the Anti-Dumping Agreement and the SCM Agreement; or
(iii) fee or other charge in connection with importation commensurate with the cost of services rendered and which does not represent a direct or indirect protection for domestic goods or a taxation of imports for fiscal purposes;
(f) Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
(g) days means calendar days, including weekends and holidays;
(h) DSU means the Understanding on Rules and Procedures Governing the Settlement ofDisputes in Annex 2 to the WTO Agreement;
(i) GATS means the General Agreement on Trade in Services in Annex 1B to the WTO Agreement;
(j) GATT 1994 means the General Agreement on Tariffs and Trade 1994 in Annex 1A tothe WTO Agreement;
(k) Harmonized System or HS means the Harmonized Commodity Description and Coding System, including its General Rules for the Interpretation, Section Notes, Chapter Notes, and Subheading Notes as adopted and administered by the World Customs Organization, set out in the Annex to the International Convention on theHarmonized Commodity Description and Coding System done at Brussels on 14 June1983, as may be amended, adopted and implemented by the Parties in their respectivelaws;
(l) Import Licensing Agreement means the Agreement on Import Licensing Procedures in Annex 1A to the WTO Agreement;
(m) Joint Committee means the Joint Committee established pursuant to Article 18.4(Joint Committee) of this Agreement;
(n) measure means any measure, whether in form of a law, regulation, rule, procedure,decision, practice, administrative action, or any other form;
(o) regional level of government means:
(i) for the UAE, each Emirate Members and in accordance with the UAE Constitution; and
(ii) for Malaysia, a State of the Federation of Malaysia in accordance with theFederal Constitution of Malaysia;
(p) Safeguards Agreement means the Agreement on Safeguards in Annex 1A to the WTO Agreement;
(q) SCM Agreement means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;
(r) SME means small and medium-sized enterprises including micro-sized enterprises;
(s) SPS Agreement means the Agreement on the Application of Sanitary andPhytosanitary Measures in Annex 1A to the WTO Agreement;
(t) TBT Agreement means the Agreement on Technical Barriers to Trade in Annex 1A to the WTO Agreement;
(u) territory means:
(i) with respect to Malaysia, its land territory, internal waters and territorial sea, and the air space above such areas, as well as any maritime area situated beyond theterritorial sea as designated or that might in the future be designated under its national law, in accordance with international law, as an area within which Malaysia exercises sovereign rights and jurisdiction with regards to the seabed, subsoil, and superjacent waters to the seabed and subsoil as well as the natural resources; and
(ii) with respect to the UAE, its land territories, internal waters, including its Free Zones, territorial sea, including, the seabed, and subsoil thereof, and air space over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which UAE has sovereignty, sovereign rights, or jurisdiction as defined in its laws, and in accordance with international law;
(v) TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement;
(w) WTO means the World Trade Organization; and
(x) WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh, 15 April 1994.
Article 1.2. Establishment of a Free Trade Area
The Parties, consistent with Article XXIV of the GATT 1994 and Article V of the GATS, hereby establish a free trade area in accordance with the provisions of this Agreement.
Article 1.3. Objectives
The objectives of this Agreement are to liberalise and facilitate trade and investment between the Parties in accordance with the provisions of this Agreement.
Article 1.4. Relation to other Agreements
1.The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which the Parties are party.
2. In the event of any inconsistency between this Agreement and other agreements to which both Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
Article 1.5. Regional and Local Governments
1. Each Party shall take such reasonable measures as may be available to it to ensure observance of the provisions of this Agreement, by regional and local governments, and authorities and by non-governmental bodies in the exercise of governmental powers delegated by central, regional or local governments, or authorities within its territories.
2. This provision is to be interpreted and applied in accordance with the principles set out in paragraph 12 of Article XXIV of the GATT 1994 and paragraph 3 of Article I of the GATS.
Article 1.6. Transparency
1. Each Party shall publish or otherwise make publicly available their laws, regulations as well as, to the extent possible, their respective international trade agreements which may affect the operation of this Agreement.
2. Without prejudice to Article 1.7, each Party shall respond with reasonable period of time to specific questions and provide, upon request, information to each other on matters referred to in paragraph 1.
Article 1.7. Confidential Information
1. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information designated as confidential by the other Party.
2. Nothing in this Agreement shall require a Party to disclose confidential information, the disclosure of which would impede law enforcement of the Party or otherwise be contrary to the public interest or which would prejudice the legitimate commercial interests of any economic operator.
3. Where a Party provides information to the other Party in accordance with this Agreement and designates the information as confidential, the Party receiving the information shall maintain the confidentiality of the information, use it only for the purposes specified by the Party providing the information and not disclose it without the specific written permission of the Party providing the information.
Chapter 2. TRADE IN GOODS
Article 2.1. Definitions
For the purposes of this Chapter, Import licensing means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party.
Article 2.2. Scope and Coverage
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Article 2.3. 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, including its interpretative notes. To this end, Article III of the GATT 1994 and its interpretative notes are incorporated into and form part of this Agreement, mutatis mutandis.
Article 2.4. Reduction or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, including as explicitly set out in each Party's schedule included in Annex 2A (Malaysia Schedule of Tariff Commitments) and 2B (UAE Schedule of Tariff Commitments), neither Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good of the other Party.
2. Upon the entry into force of this Agreement, Malaysia shall eliminate or reduce its customs duties applied on goods originating from the UAE in accordance with Annex 2A (Malaysia Schedule of Tariff Commitments) and the UAE shall eliminate or reduce its customs duties on goods originating from Malaysia in accordance with Annex 2B (UAE Schedule of Tariff Commitments).
3. Where a Party reduces its most-favoured-nation applied rate of customs duty, that duty rate shall apply to an originating good of the other Party if, and for as long as, it is lower than the customs duty rate on the same good calculated in accordance with Annex 2A (Malaysia Schedule of Tariff Commitments) in the case of Malaysia or Annex 2B (UAE Schedule of Tariff Commitments) in the case of the UAE.
Article 2.5. Acceleration or Improvement of Tariff Commitments
1. Upon request of a Party, the other Party shall consult with the requesting Party to consider accelerating or improving, the scope of the elimination of customs duties as set out in its schedule of tariff commitments in Annex 2 (Schedules of Tariff Commitments).
2. Further commitments between the Parties to accelerate or improving the scope of the elimination of a customs duty on a good (or to include a good in Annex 2 (Schedule of Tariff Commitments) shall supersede any duty rate or staging category determined pursuant to their respective Schedules for that good once approved by each Party in accordance with its applicable legal procedures.
3. Nothing in this Agreement shall prohibit a Party from unilaterally accelerating or improving the scope of the elimination of customs duties set out in its Schedule to Annex 2 (Schedules of Tariff Commitments) on originating goods. Any such unilateral acceleration or improving of the scope of the elimination of customs duties will not permanently supersede any duty rate or staging category determined pursuant to their respective Schedule nor serve to waive that Party's right to raise the customs duty back to the level established in its Schedule to Annex 2 (Schedule of Tariff Commitments) following a unilateral reduction.
Article 2.6. Classification of Goods and Transposition of Schedules
1. The classification of goods in trade between the Parties shall be in conformity with the Harmonized Commodity Description and Coding Systems (HS) and its amendments. Each Party shall ensure consistency in applying its laws and regulations to the tariff classification of originating goods of the other Party.
2. Each Party shall ensure the transposition of its respective schedule in Annex 2A (Malaysia Schedule of Tariff Commitments) and Annex 2B (UAE Schedule of Tariff Commitments) due to periodic amendments and transposition of the HS Code.
3. If the Parties decide that revisions are necessary in accordance with paragraph 2, the transposition of the Schedules of Tariff Commitments shall be carried out in accordance with the methodologies and procedures adopted by the Sub-Committee on Trade in Goods.
4. Each Party shall ensure that the transposition of its Schedule of Tariff Commitments under paragraph 3 does not impair or diminish the tariff commitments set out in its Schedule of Tariff Commitments in Annex 2A (Malaysia Schedule of Tariff Commitments) and 2B (UAE Schedule of Tariff Commitments).
5. A Party may introduce new tariff splits or merges, provided that the preferential conditions applied in the new tariff splits are not less preferential than those applied originally.
Article 2.7. Import and Export Restrictions
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 GATT 1994 and its interpretative notes, and to this end Article XI of GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
Article 2.8. Import Licensing
1. Neither Party may adopt nor maintain a measure that is inconsistent with the Import Licensing Agreement (1), which is hereby incorporated into and made part of this Agreement, mutatis mutandis.
2. Before applying any new or modified import licensing procedure, a Party shall publish it in such a manner as to enable governments and traders to become acquainted with it, including through publication on an official government internet site. Upon request of the other Party, the Party shall exchange information concerning its implementation in a reasonable period.
Article 2.9. Customs Valuation
The Parties shall determine the customs value of goods traded between them in accordance with the provisions of Article VII of the GATT 1994 and the Customs Valuation Agreement, mutatis mutandis.
Article 2.10. Export Subsidies
1.Neither Party shall adopt or maintain any export subsidy on any good destined for the territory of the other Party in accordance with the SCM Agreement and the Agreement on Agriculture.
2.The Parties reaffirm their commitments made in the WTO Ministerial Conference Decision on Export Competition adopted in Nairobi on 19 December 2015, including the elimination of scheduled export subsidy entitlements for agricultural goods.
Article 2.11. Restrictions to Safeguard the Balance-of-Payments
Any such measures taken for trade in goods shall be in accordance with Article XII of the GATT 1994 and the Understanding on the Balance-of-Payments Provisions of the GATT 1994, the provisions of which are incorporated into and made a part of this Agreement, mutatis mutandis.
Article 2.12. Administrative Fees and Formalities
1. Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994 and its interpretivenotes, that all fees and charges of whatever character (other than import and export duties, chargesequivalent to an internal tax or other internal charges applied consistently with Article III:2 of GATT 1994, and anti-dumping and countervailing duties) imposed on, or in connection with, importation or exportation of goods are limited in amount to the approximate cost of servicesrendered, which shall not be calculated on an ad valorem basis, and shall not represent an indirectprotection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. Each Party shall promptly publish details and shall make such information available on the internet regarding the fees and charges it imposes in connection with importation or exportation.
Article 2.13. Non-Tariff Measures
1. 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 this Agreement.
2. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings relating to non-tariff measures are not prepared, adopted, or applied with the view to, or with the effect of, creating unnecessary obstacles to trade with the other Party.
3. If a Party considers that a non-tariff measure of the other Party is creating an unnecessary obstacle to trade, that Party may nominate such a non-tariff measure for review by the Sub-Committee on Trade in Goods by notifying through written request letter, which shall be submitted at least 30 days before the date of the next scheduled meeting of the Sub-Committee on Trade in Goods. A nomination of a non-tariff measure for review shall include reasons for its nomination, how the measure adversely affects trade between the Parties, and if possible, suggested solutions. The Sub-Committee on Trade in Goods shall immediately review the measure with a view to securing a mutually agreed solution to the matter. Review by the Sub-Committee on Trade in Goods is without prejudice to the Parties' rights under Chapter 16 (Dispute Settlement).
Article 2.14. 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 and the Understanding on the Interpretation of Article XVII of the GATT 1994, mutatis mutandis.
Article 2.15. Temporary Admission of Goods
1. Each Party shall, in accordance with its respective domestic law, grant temporary admissionfree of customs duties for the following goods imported from the other Party, regardless of theirorigin:(a)professional and scientific equipment, including their spare parts, and includingequipment for the press or television, software, and broadcasting and cinematographicequipment, that are necessary for carrying out the business activity, trade, or professionof a person who qualifies for temporary entry pursuant to the laws of the importingParty;
(b) goods intended for display, demonstration or use at theatres, exhibitions, fairs, or other similar events;
(c) commercial samples and advertising films and recordings;
(d) goods admitted for sports purposes;
(e) containers and pallets that are used for the transportation of equipment or used forrefilling; and
(f) goods entered for completion or processing.
2. Each Party shall, at the request of the importer and for reasons deemed valid by its Customs Authority, extend the time limit for temporary admission beyond the period initially fixed.
3. Neither Party may condition the temporary admission of a good referred to in paragraph 1, other than to require that the good:
(a) not be sold or leased while in its territory;
(b) be accompanied by a security in an amount no greater than the custom duties and any other tax imposed on imports that would otherwise be owed on entry or final importation, releasable on exportation of the good;
(c) be capable of identification when exported;
(d) be exported in accordance with the time period granted for temporary admission in accordance with its domestic law related to the purpose of the temporary admission;
(e) not be admitted in a quantity greater than is reasonable for its intended use; or
(f) be otherwise admissible into the importing Party's territory under its law.
4.If any condition that a Party imposes under paragraph 3 has not been fulfilled, that Party may apply the customs duty, and any other tax or charge that would normally be owed on the importation of the good, and any other charges or penalties provided for under its law.
5. Each Party through its Customs Authority shall adopt and maintain procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, such procedures shall provide that when such a good accompanies a national or resident of the other Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national or resident.
6. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than that through which it was admitted in accordance with its customs procedures.
7. Each Party shall provide that the importer of a good admitted under this Article shall not be liable for failure to export the good on presentation of satisfactory proof to the importing Party that the good has been destroyed within the original period fixed for temporary admission or any lawful extension. A Party may condition relief of liability under this paragraph by requiring the importer to receive prior approval from the Customs Authority of the importing Party before the good can be so destroyed.
Article 2.16. Goods Re-Entered after Repair or Alteration
1. Neither Party shall apply a customs duty to a good, regardless of its origin, that re-enters itsterritory in accordance with its laws and procedures after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whethersuch repair or alteration could be performed in the territory from which the good was exported, except that a customs duty or other taxes may be applied to the addition resulting from the repairor alteration that was performed in the territory of the other Party.
2. Neither Party shall apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.
3. For purposes of this Article, "repair" or "alteration" does not include an operation or process that:
(a) destroys a good's essential characteristics or creates a new or commercially differentgood;
(b) transforms an unfinished good into a finished good; or(c)results in a change of the classification at a six-digit level of the Harmonized System (HS).
Article 2.17. Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials
Each Party, in accordance with its respective domestic law, shall grant duty-free entry to commercial samples of negligible value, and to printed advertising materials, imported from the territory of the other Party, regardless of their origin, but may require that:
(a)such samples be imported solely for the solicitation of orders for goods or services provided from the territory of the other Party or a non-Party; or
(b) such advertising materials be imported in packets, that each contains no more than one copy of each such material, and that neither the materials nor the packets form part of a larger consignment.
Article 2.18. Sub-Committee on Trade In Goods
1. The Parties hereby establish a Sub-Committee on Trade in Goods under the Joint Committeecomprising representatives of each Party.
2. The Sub-Committee shall meet once a year or meet on the request of the other Party at a mutually agreed time, venue, and means, to consider any matter arising under this Chapter. The Sub-Committee may carry out its work through whatever means are appropriate, which may include electronic mail, videoconferencing, or other means.
3.The functions of the Sub-Committee shall include, inter alia:
(a) monitoring and reviewing the implementation and administration of this Chapter, and making reports and recommendations, if appropriate;
(b) promoting trade in goods between the Parties, including through consultations on accelerating or improving the scope of preferential treatment or tariff elimination under this Agreement and other issues, as appropriate;
(c) addressing barriers to trade in goods between the Parties including those related to the application of non-tariff measures which may restrict trade in goods between the Parties and, if appropriate, referring such matters to the Joint Committee for its consideration;