(t) "measure" includes any law, regulation, rule, procedure, decision, administrative action, requirement or practice; (4)
(u) "national" means a natural person who has the nationality of one of the Member States of the European Union or of Mexico according to their respective law or is a permanent resident of a Party;
(v) "natural person" means (5) :
(i) in the case of the European Union, a person having the nationality of one of the Member States of the European Union according to its legislation; (6) and
(ii) in the case of Mexico, a person having the nationality of Mexico according to its legislation;
a natural person who is a national of Mexico and has the nationality of one of the Member States of the European Union is deemed to be exclusively a natural person of the Party of his or her dominant and effective nationality;
(w) "OECD" means the Organization for Economic Co-operation and Development;
(x) "originating good" means a good qualifying as originating under the rules of origin set out in Chapter 3 (Rules of Origin and Origin Procedures);
(y) "person" means a natural person or an enterprise;
(z) "person of a Party" means a national or an enterprise of a Party;
(aa) "preferential tariff treatment" means the rate of customs duty applicable to an originating good pursuant to Article 2.4 (Elimination or Reduction of Customs Duties);
(bb) "Safeguards Agreement" means the Agreement on Safeguards in Annex 1A to the WTO Agreement;
(cc) "SCM Agreement" means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;
(dd) "selling and marketing of air transport services" means opportunities for the air carrier concerned to sell and market freely its air transport services, including all aspects of marketing such as market research, advertising and distribution, but does not include the pricing of air transport services or the applicable conditions;
(ee) "service supplier" means a person that supplies or seeks to supply a service;
(ff) "SPS Agreement" means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement;
(gg) "state enterprise" means an enterprise that is owned or controlled by a Party;
(hh) "TBT Agreement" means the Agreement on Technical Barriers to Trade in Annex 1A to the WTO Agreement;
(ii) "territory" means the territory where this Agreement applies pursuant to Article 2.2 (Territorial Application) of Part IV of this Agreement;
(jj) "third country" means a country or territory outside the territorial scope of application of this Agreement;
(kk) "TRIPS Agreement" means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement;
(ll) "Vienna Convention on the Law of Treaties" means the Vienna Convention on the Law of Treaties, done at Vienna on 23 May 1969;
(mm) "WTO" means the World Trade Organization; and
(nn) "WTO Agreement" means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.
Article 1.4. Relation to the WTO Agreement
The Parties affirm their rights and obligations with respect to each other under the WTO Agreement.
Article 1.5. References to Laws and other Agreements
1. Unless otherwise indicated, any reference in this Part of the Agreement to laws, either generally or by reference to a specific statute, regulation or directive, shall be construed as a reference to the laws, as they may be amended.
2. Unless otherwise indicated, any reference, or incorporation by means of a reference in this Part of the Agreement to other agreements or legal instruments in whole or in part shall be construed as including:
(a) related annexes, protocols, footnotes, interpretative notes and explanatory notes; and
(b) successor agreements to which the Parties are party or amendments that are binding on the Parties, except where the reference affirms existing rights and obligations.
Article 1.6. Fulfilment of Obligations
1. Each Party shall adopt any general or specific measures required to fulfil the obligations under this Part of the Agreement, including those required to ensure observance thereof by central, regional or local governments and authorities, as well as non-governmental bodies in the exercise of powers delegated to them.
2. For greater certainty, a Party may suspend rights and obligations under this Part of the Agreement, except as provided for in paragraph 3 of Article 2.3 of Part IV of this Agreement (Fulfilment of Obligations), only for violations of this Part of the Agreement by the other Party and in conformity with the requirements set out therein, including Chapter 31 (Dispute Settlement).
Section B. Institutional Provisions
Article 1.7. Specific Functions of the Joint Council
1. When the Joint Council performs any of the functions conferred upon it in this Part of the Agreement, it shall be composed, at ministerial level, of representatives of the EU Party with responsibility for trade and investment matters, of the one part, and of representatives of the Ministry of Economy of Mexico, of the other, or by their designees.
2. The Joint Council may modify, in fulfilment of the objectives of this Part of the Agreement:
(a) Annex 2-A (Tariff Elimination Schedule) and Annex 2-E (Relevant measures on Wines Products and Spirits);
(b) Chapter 3 (Rules of Origin and Origin Procedures) including Annexes 3-A to 3-D;
(c) Annex 10-D (Code of Conduct for Members of the Tribunal, the Appeal Tribunal and Mediators);
(d) the relevant lists and schedules of Mexico pursuant to paragraph 6 of Article 10.12 (Non‑Conforming Measures and Exceptions) and paragraph 4 of Article 11.8 (Non‑Conforming Measures and Exceptions);
(e) Annex 21-A (Covered Procurement of the European Union) and Annex 21-B (Covered Procurement of Mexico);
(f) Annex 25-B (List of Geographical Indications);
(g) Annex 31-A (Rules of Procedure) and Annex 31-B (Code of Conduct for Panellists and Mediators);
3. The Joint Council may also, in fulfilment of the objectives of this Part of the Agreement:
(a) adopt binding interpretations of the provisions of this Part of the Agreement;
(b) take such other decision as provided for in this Part of the Agreement; and
(c) take any other action in the exercise of its functions as the Parties may agree.
4. Each Party shall implement, in accordance with its applicable legal procedures, any modification referred to in subparagraph 2(a) within such period as the Parties may agree.
Article 1.8. Specific Functions of the Joint Committee
1. When the Joint Committee performs any of the functions conferred upon it in this Part of the Agreement, it shall be composed of representatives at senior level of the EU Party with responsibility for trade and investment matters, on the one part, and of representatives of the Ministry of Economy of Mexico, on the other, in accordance with the respective requirements of each Party or by their designees.
2. The Joint Committee shall:
(a) assist the Joint Council in the performance of its functions regarding trade-related matters;
(b) be responsible for the proper implementation and application of the provisions of this Part of the Agreement and for the evaluation of the results obtained from its application;
(c) without prejudice to Chapter 31 (Dispute Settlement), seek to prevent and solve differences or disputes that may arise regarding the interpretation or application of this Part of the Agreement;
(d) supervise the work of the Sub-Committees and other bodies established under this Part of the Agreement; and
(e) discuss ways to further enhance trade and investment between the Parties.
3. In the performance of its duties under paragraph 2, the Joint Committee may:
(a) establish additional Sub-Committees and other bodies from those established in this Part of the Agreement, composed of representatives of the Parties, and assign them responsibilities within its competence and decide to modify the functions that are assigned to the Sub‑Committees and other bodies it establishes, as well as dissolve them;
(b) recommend the adoption of decisions in compliance with the specific objectives of this Part of the Agreement to the Joint Council, including the modifications referred to in subparagraph 2(a) of Article 1.7, or adopt such decisions in the intervals between the meetings of the Joint Council, including when the Joint Council is not able to meet; and
(c) take any other action in the exercise of its functions as the Parties may agree or as instructed by the Joint Council.
Article 1.9. Coordinators of Part III of this Agreement
1. Each Party shall designate a Coordinator for this Part of the Agreement and notify the other Party thereof within sixty days after the entry into force of this Agreement.
2. The coordinators shall:
(a) facilitate communications between the Parties on any matter covered by this Part of the Agreement, as well as other contact points established thereunder;
(b) jointly prepare agendas and make all other necessary preparations for the meetings of the Joint Council and the Joint Committee in accordance with this Article; and
(c) follow-up on the decisions of the Joint Council and the Joint Committee, as appropriate.
Article 1.10. Sub-Committees and other Bodies of Part III of this Agreement
1. The Parties hereby establish the following sub-committees and other bodies, which shall be composed of representatives of the EU Party, of the one part, and of representatives of Mexico, of the other:
(a) Committee on Trade in Goods;
(b) Sub-Committee on Agriculture;
(c) Sub-Committee on Trade in Wine and Spirits;
(d) Sub-Committee on Customs Trade Facilitation and Rules of Origin;
(e) Sub-Committee on Sanitary and Phytosanitary Measures;
(f) Joint Working Group on Animal Welfare and Antimicrobial Resistance;
(g) Sub-Committee on Technical Barriers to Trade;
(h) Sub-Committee on Services and Investment;
(i) Sub-Committee on Financial Services;
(j) Sub-Committee on Public Procurement;
(k) Sub-Committee on Intellectual Property;
(l) Sub-Committee on Trade and Sustainable Development.
2. Except as otherwise provided in this Part of the Agreement, Article 1.4 of Part IV of this Agreement applies to the sub-committees and other bodies referred to in paragraph 1.
3. The sub-committees and other bodies referred to in paragraph 1 may make appropriate recommendations in the cases provided for under this Part of the Agreement.
4. Recommendations shall be made by mutual consent.
Article 1.11. Relationship with Civil Society
1. Each Party shall meet at least once a year its respective domestic advisory group referred to in Article 1.7 (Domestic Advisory Groups) of Part IV of this Agreement to discuss matters relating to the application of this Part of the Agreement.
2. When the Joint Council or the Joint Committee meets in its trade configuration, it shall convene a meeting of the Civil Society Forum referred to in Article 1.8 (Civil Society Forum) of Part IV of this Agreement in order to conduct a dialogue on the application of this Part of the Agreement.
Chapter 2. TRADE IN GOODS
Section A. General Provisions
Article 2.1. Definitions
For the purposes of this Chapter:
(a) "consular transactions" means the procedure of obtaining from a consul of the importing Party in the territory of the exporting Party or in the territory of a third party a consular invoice or a consular visa for a commercial invoice, certificate of origin, manifest, shipper's export declaration or any other customs documentation required on or in connection with the importation of a good;
(b) "export licensing procedure" 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 or bodies of the exporting Party as a prior condition for exportation from the territory of the exporting Party;
(c) "Import Licensing Agreement" means the Agreement on Import Licensing Procedures, set out in Annex 1A to the WTO Agreement.
(d) "import licensing procedure" 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 or bodies of the importing Party as a prior condition for importation into the territory of the importing Party.
Article 2.2. Scope
Unless otherwise provided for in this Agreement, this Chapter applies to trade in goods of a Party.
Article 2.3. National Treatment
1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its Notes and Supplementary Provisions. To that end, Article III of GATT 1994 and its Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis.
2. For greater certainty, national treatment means, with respect to a level of government in Mexico other than at the federal level, or a level of government of or in a Member State of the European Union, treatment no less favourable than that accorded by that level of government to like, directly competitive or substitutable goods of Mexico or the Member State, respectively.
Article 2.4. Elimination or Reduction of Customs Duties
1. Unless otherwise provided for in this Agreement, each Party shall eliminate or reduce its customs duties on originating goods in accordance with Annex 2-A (Tariff Elimination Schedule) and shall not apply any customs duty upon the entry into force of this Agreement to originating goods classified in tariff lines of Chapters 1 to 97 of the Harmonized System other than those included respectively in Appendices 2-A-1 (Tariff Elimination Schedule of the European Union) or 2-A-2 (Tariff Elimination Schedule of Mexico) to Annex 2-A (Tariff Elimination Schedule).
2. Unless otherwise provided for in this Agreement, a Party shall not increase any existing customs duty, or adopt any new customs duty, on an originating good of the other Party. (7)
3. If a Party reduces its applied most-favoured-nation customs duty rate, that duty rate shall apply to originating goods of the other Party for as long as it is lower than the customs duty rate determined pursuant to Annex 2-A (Tariff Elimination Schedule).
4. On request of a Party, the Parties shall consult to consider the possibility of improving the tariff treatment for market access of originating goods set out in Annex 2-A (Tariff Elimination Schedule). The Joint Council may take a decision to modify Annex 2-A (Tariff Elimination Schedule). (8)
5. For greater certainty, a Party may maintain or increase a customs duty on the originating good as authorised by the Dispute Settlement Body of the WTO.
Article 2.5. Export Duties, Taxes or other Charges
1. A Party shall not adopt or maintain any tax or charge on the exportation of a good to the territory of the other Party that is in excess of that imposed on that good when destined for domestic consumption.
2. A Party shall not adopt or maintain any duty or charge of any kind imposed on, or in connection with, the exportation of a good to the territory of the other Party that is in excess of that imposed on that good when destined for domestic consumption.
3. Nothing in this Article shall prevent a Party from imposing on the exportation of a good a fee or charge that is permitted under Article 2.6.
Article 2.6. Fees and Formalities
1. Fees and other charges imposed by a Party on, or in connection with, the importation of a good of the other Party or exportation of a good to the other Party shall be limited in amount to the approximate cost of services rendered, and shall not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. A Party shall not apply a customs-processing fee on originating goods. (9)
3. Each Party shall publish all fees and charges it imposes in connection with importation or exportation in such a manner as to enable governments, traders and other interested parties to become acquainted with them.
4. A Party shall not require consular transactions, including related fees and charges, in connection with the importation of a good of the other Party. (10)
Article 2.7. Goods Re-Entered after Repair or Alteration
1. "repair or alteration" means any processing operation undertaken on a good to remedy operating defects or material damage and entailing the re-establishment of the good to its original function or to ensure compliance with technical requirements for its use, without which the good could no longer be used in the normal way for the purposes for which it was intended. Repair of a good includes restoration and maintenance but does not include an operation or process that:
(a) destroys the essential characteristics of a good, or creates a new or commercially different good;
(b) transforms an unfinished good into a finished good; or
(c) is used to substantially change the function of a good.
2. A Party shall not apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in the territory of the Party from which the good was exported for repair or alteration.
3. Paragraph 2 does not apply to a good imported in bond, into free trade zones, or in similar status, that is then exported for repair and is not re-imported in bond, into free trade zones, or in similar status.
4. A Party shall not apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.
Article 2.8. Remanufactured Goods
1. "remanufactured good" means a good classified in Chapters 84 to 90 or in heading 9402 of the Harmonized System, except goods included in Annex 2-B (List of Goods Excluded from the Definition of Remanufactured Goods), that:
(a) is entirely or partially produced from recovered materials of goods that have been used;
(b) has similar performance and working conditions as well as life expectancy as the like good in new condition; and
(c) is given the same warranty as the like good in new condition.
2. Unless otherwise provided for in this Agreement, a Party shall not accord to remanufactured goods of the other Party a treatment that is less favourable than that it accords to like goods in new condition.
3. Subject to its obligations under this Agreement and the WTO Agreement, a Party may require that remanufactured goods:
(a) be identified as such for distribution or sale in its territory, including specifically labelled in order to prevent deception of consumers; and
(b) meet all applicable technical requirements and regulations that apply to like goods in new condition.
4. For greater certainty, Article 2.9 applies to remanufactured goods. If a Party adopts or maintains import or export prohibitions or restrictions on used goods, it shall not apply those measures to remanufactured goods.
Article 2.9. Import and Export Restrictions
Unless otherwise provided for in Annex 2-C (Exceptions from Import and Export Restrictions of Mexico), a Party shall not 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, including its Notes and Supplementary Provisions. To that end, Article XI of GATT 1994, including its Notes and Supplementary Provisions, are incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.10. Import Licensing
1. Each Party shall adopt and administer any import licensing procedures in accordance with Articles 1 to 3 of the Import Licensing Agreement.
2. Each Party shall notify to the other Party any new import licensing procedure and any modification of existing import licensing procedures within 60 days after the date of its publication and, if possible, no later than 60 days before the new procedure or modification takes effect. The notification shall include the information specified in paragraph 2 of Article 5 of the Import Licensing Agreement, as well as the electronic addresses of the official websites, referred to in paragraph 4 of this Article. A Party shall be deemed to comply with this provision if it notifies the relevant new import licensing procedure, or any modification thereof, to the Committee on Import Licensing provided for in Article 4 of the Import Licensing Agreement in accordance with paragraphs 1 to 3 of Article 5 of the Import Licensing Agreement.
3. On request of a Party, the other Party shall promptly provide any relevant information, including the information specified in paragraph 2 of Article 5 of the Import Licensing Agreement, regarding any import licensing procedure that it intends to adopt, has adopted or maintains, or regarding any modification of existing licensing procedures.
4. Each Party shall publish on the relevant official websites the information it is required to publish pursuant to subparagraph 4(a) of Article 1 of the Import Licensing Agreement and shall ensure that the information specified in paragraph 2 of Article 5 of the Import Licensing Agreement is publicly available.
Article 2.11. Export Licensing
1. Each Party shall publish any new export licensing procedure, or any modification of an existing export licensing procedure including, if appropriate, on the relevant official websites. Such publication shall take place, if practicable, no later than 45 days before the procedure or modification takes effect, and in any event, no later than the date when the procedure or modification takes effect.