A Comparative Guide to the Chile-United States Free Trade Agreement and the |
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Chapter Three: National Treatment and Market Access for Goods |
CHILE – U.S. Date of Signature: June 6, 2003 Chapter Three: National Treatment and Market Access for Goods |
DR - CAFTA Date of Signature: August 5, 2004 Chapter Three: National Treatment and Market Access for Goods |
Article 3.1: Scope and Coverage |
Article 3.1: Scope and Coverage |
Except as otherwise provided, this Chapter applies to trade in goods of a Party. | Except as otherwise provided, this Chapter applies to trade in goods of a Party. |
Section A
- National Treatment |
Section
A: 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 interpretative notes, and to this end Article III of GATT 1994, and its interpretative notes, are incorporated into and made part of this Agreement, mutatis mutandis. | 1. Each Party shall accord national treatment to the goods of another Party in accordance with Article III of the GATT 1994, including its interpretive notes, and to this end Article III of the GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis. |
2. The provisions of paragraph 1 regarding national treatment shall
mean, with respect to a regional level of government, treatment no less
favorable than the most favorable treatment that regional level of government
accords to any like, directly competitive, or substitutable goods, as the case
may be, of the Party of which it forms a part.1 1 For greater certainty, “goods of the Party” includes goods produced in a state or region of that Party. |
2. The provisions of paragraph 1 regarding national treatment shall mean, with respect to a regional level of government, treatment no less favorable than the most favorable treatment that regional level of government accords to any like, directly competitive, or substitutable goods, as the case may be, of the Party of which it forms a part. |
3. Paragraphs 1 and 2 shall not apply to the measures set out in Annex 3.2. | 3. Paragraphs 1 and 2 shall not apply to the measures set out in Annex 3.2. |
Section B - Tariff Elimination Article 3.3: Tariff Elimination |
Section B: Tariff Elimination Article 3.3: Tariff Elimination |
1. Except as otherwise provided in this Agreement, neither Party may increase any existing customs duty, or adopt any customs duty, on an originating good. | 1. Except as otherwise provided in this Agreement, no Party may increase any existing customs duty, or adopt any new customs duty, on an originating good. |
2. Except as otherwise provided in this Agreement, each Party shall progressively eliminate its customs duties on originating goods in accordance with Annex 3.3. |
2. Except as otherwise provided in
this Agreement, each Party shall progressively eliminate its customs
duties on originating goods,
in accordance with Annex 3.3. 1 1 For greater certainty, except as otherwise provided in this Agreement, each Central American Party and the Dominican Republic shall provide that any originating good is entitled to the tariff treatment for the good set out in its Schedule to Annex 3.3, regardless of whether the good is imported into its territory from the territory of the United States or any other Party. An originating good may include a good produced in a Central American Party or the Dominican Republic with materials from the United States. |
3. The United States shall eliminate customs duties on any non-agricultural originating goods that, after the date of entry into force of this Agreement, are designated as articles eligible for duty-free treatment under the U.S. Generalized System of Preferences, effective from the date of such designation. | 3. For greater certainty, paragraph 2 shall not prevent a Central American Party from providing identical or more favorable tariff treatment to a good as provided for under the legal instruments of Central American integration, provided that the good meets the rules of origin under those instruments. |
4. On the request of either Party,
the Parties shall consult to consider accelerating the elimination
of customs duties set out in their Schedules to Annex 3.3. An
agreement between the Parties to accelerate the elimination of a
customs duty on a good shall supercede any duty rate or staging
category determined pursuant to their Schedules to Annex 3.3 for
such good when approved by each Party in accordance with
Article 21.1(3)(b) (The Free Trade
Commission) and its applicable legal procedures.
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4. On the request of any Party, the Parties shall consult to consider accelerating the elimination of customs duties set out in their Schedules to Annex 3.3. Notwithstanding Article 19.1.3(b) (The Free Trade Commission), an agreement between two or more Parties to accelerate the elimination of a customs duty on a good shall supercede any duty rate or staging category determined pursuant to their Schedules to Annex 3.3 for such good when approved by each such Party in accordance with its applicable legal procedures. Promptly after two or more Parties conclude an agreement under this paragraph they shall notify the other Parties of the terms of that agreement. |
5. For greater certainty, a Party
may:
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5. For greater certainty, a Party
may:
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6. Annex 3.3.6 applies to the Parties specified in that Annex. | |
Costa Rica
General Notes and Appendix I |
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Dominican
Republic General Notes and Appendix I |
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El Salvador
General Notes and Appendix I |
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Guatemala
General Notes and Appendix I |
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Honduras
General Notes and Appendix I |
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Nicaragua
General Notes and Appendix I |
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US General
Notes and Appendix I |
Article 3.4: Used Goods |
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On entry into force of this Agreement, Chile shall cease applying the 50 percent surcharge established in the Regla General Complementaria N° 3 of Arancel Aduanero with respect to originating goods of the other Party that benefit from preferential tariff treatment. | NO CORRESPONDING ARTICLE |
Article 3.5: Customs Valuation of Carrier Media |
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1. For purposes of determining the
customs value of carrier media bearing content, each Party shall
base its determination on the cost or value of the carrier media
alone.
2. For purposes of the effective imposition of any internal taxes, direct or indirect, each Party shall determine the tax basis according to its domestic law. |
NO CORRESPONDING ARTICLE |
Section C - Special Regimes
Article 3.6: Waiver of Customs Duties |
Section C: Special Regimes Article 3.4: Waiver of Customs Duties |
1. Neither Party may adopt any new waiver of customs duties, or expand with respect to existing recipients or extend to any new recipient the application of an existing waiver of customs duties, where the waiver is conditioned, explicitly or implicitly, on the fulfillment of a performance requirement. | 1. No Party may adopt any new waiver of customs duties, or expand with respect to existing recipients or extend to any new recipient, the application of an existing waiver of customs duties, where the waiver is conditioned, explicitly or implicitly, on the fulfillment of a performance requirement. |
2. Neither Party may, explicitly or
implicitly, condition on the fulfillment of a performance
requirement the continuation of any existing waiver of customs
duties. 3. This Article shall not apply to measures subject to Article 3.8. |
2. No Party may, explicitly or implicitly, condition on the fulfillment of a performance requirement the continuation of any existing waiver of customs duties. |
NO CORRESPONDING PARAGRAPH |
3. Costa Rica,
the Dominican Republic, El Salvador, and Guatemala may each maintain
existing measures inconsistent with paragraphs 1 and 2, provided it
maintains such measures in accordance with Article 27.4 of the SCM
Agreement. Costa Rica, the Dominican Republic, El Salvador, and
Guatemala may not maintain any such measures after December 31,
2009. 4. Nicaragua and Honduras may each maintain measures inconsistent with paragraphs 1 and 2 for such time as it is an Annex VII country for purposes of the SCM Agreement. Thereafter, Nicaragua and Honduras shall maintain any such measures in accordance with Article 27.4 of the SCM Agreement. |
Article 3.7: Temporary Admission of Goods | Article 3.5: Temporary Admission of Goods |
1. Each Party shall grant duty-free
temporary admission for:
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1. Each Party shall grant duty-free
temporary admission for the
following goods, regardless of their origin:
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2. Each Party shall, at the request of the person concerned and for reasons deemed valid by its customs authority, extend the time limit for temporary admission beyond the period initially fixed. | 2. Each Party shall, at the request of the person concerned and for reasons its customs authority considers valid, extend the time limit for temporary admission beyond the period initially fixed. |
3. Neither Party may condition the
duty-free temporary admission of goods referred to in paragraph 1,
other than to require that such goods:
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3. No Party may condition the duty-free temporary admission of
a good referred to in
paragraph 1, other than to require that such
good:
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4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the good plus any other charges or penalities provided for under its domestic law. | 4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the good plus any other charges or penalties provided for under its law. |
5. Each Party, through its customs authority, shall adopt 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. | 5. Each Party, through its customs authority, shall adopt 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 another 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. | 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. |
7. Each Party, through its customs authority, consistent with domestic law, shall relieve the importer or other person responsible for a good admitted under this Article from any liability for failure to export the good on presentation of satisfactory proof to customs authorities that the good has been destroyed within the original period fixed for temporary admission or any lawful extension. | 7. Each Party shall provide that its customs authority or other competent authority shall relieve the importer or other person responsible for a good admitted under this Article from any liability for failure to export the good on presentation of satisfactory proof to the importing Party’s customs authority that the good has been destroyed within the original period fixed for temporary admission or any lawful extension. |
8. Subject to Chapters Ten
(Investment) and Eleven (Cross-Border Trade in Services):
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8. Subject to Chapters Ten
(Investment) and Eleven (Cross-Border Trade in Services):
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9. For purposes of paragraph 8, vehicle means a truck, a truck tractor, tractor, trailer unit or trailer, a locomotive, or a railway car or other railroad equipment. | 9. For purposes of paragraph 8, vehicle means a truck, a truck tractor, tractor, trailer unit or trailer, a locomotive, or a railway car or other railroad equipment. |
Article 3.8: Drawback and Duty Deferral Programs |
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1. Except as otherwise provided in
this Article, neither Party may refund the amount of customs duties
paid, or waive or reduce the amount of customs duties owed, on a
good imported into its territory, on condition that the good is:
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NO CORRESPONDING ARTICLE |
2. Neither Party may, on condition
of export, refund, waive, or reduce:
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NO CORRESPONDING ARTICLE |
3. Where a good is imported into the territory of a Party pursuant to a duty deferral program and is subsequently exported to the territory of the other Party, or is used as a material in the production of another good that is subsequently exported to the territory of the other Party, or is substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of the other Party, the Party from whose territory the good is exported shall assess the customs duties as if the exported good had been withdrawn for domestic consumption. | NO CORRESPONDING ARTICLE |
4. This Article does not apply to:
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NO CORRESPONDING ARTICLE |
5. This Article shall take effect
beginning eight years after the date of entry into force of this
Agreement, and thereafter a Party may refund, waive, or reduce
duties paid or owed under the Party’s duty drawback or deferral
programs according to the following schedule:
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6. For purposes of this Article: good means “good” as defined in Article 4.18 (Definitions); identical or similar goods means “identical goods” and “similar goods”, respectively, as defined in the Customs Valuation Agreement; material means “material” as defined in Article 4.18 (Definitions); and used means used or consumed in the production of goods. |
Article 3.9:
Goods Re-entered after Repair or Alteration |
Article
3.6: Goods Re-entered after Repair or Alteration |
1. Neither Party may apply a customs duty to a good, regardless of its origin, that reenters 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 its territory. | 1. No Party may 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 another 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. |
2. Neither Party may apply a customs duty to a good, regardless of its origin, admitted temporarily from the territory of the other Party for repair or alteration. | 2. No Party may apply a customs duty to a good, regardless of its origin, admitted temporarily from the territory of another Party for repair or alteration. |
3. For purposes of this Article, repair or alteration
does not include an operation or process
that:
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3. For purposes of this Article, repair or alteration
does not include an operation or process
that:
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Article 3.10: Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials |
Article 3.7: Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials |
Each Party 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:
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Each Party shall grant duty-free entry to commercial samples of negligible value and to printed advertising materials, imported from the territory of another Party, regardless of their origin, but may require that:
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Section D -
Non-Tariff Measures Article 3.11: Import and Export Restrictions |
Section D: Non-Tariff Measures Article 3.8: Import and Export Restrictions |
1. 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. |
1. Except as otherwise provided in
this Agreement, no Party may
adopt or maintain any prohibition or restriction on the importation
of any good of another Party
or on the exportation or sale for export of any good destined for
the territory of another
Party, except in accordance with Article XI of
the GATT 1994 and its
interpretative notes, and to this end Article XI of
the GATT 1994 and its
interpretative notes are incorporated into and made a part of this
Agreement, mutatis mutandis.2 2 For greater certainty, this paragraph applies, inter alia, to prohibitions or restrictions on the importation of remanufactured goods. |
2. The Parties understand that the
GATT rights and obligations incorporated by paragraph 1 prohibit, in
any circumstances in which any other form of restriction is
prohibited, a Party from adopting or maintaining:
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2. The Parties understand that the
GATT 1994 rights and
obligations incorporated by paragraph 1 prohibit, in any
circumstances in which any other form of restriction is prohibited,
a Party from adopting or maintaining:
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3. In the event that a Party adopts
or maintains a prohibition or restriction on the importation from or
exportation to a non-Party of a good, nothing in this Agreement
shall be construed to prevent the Party from:
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3. In the event that a Party adopts
or maintains a prohibition or restriction on the importation from or
exportation to a non-Party of a good, nothing in this Agreement
shall be construed to prevent the Party from:
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4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, on the request of either Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing, and distribution arrangements in the other Party. | 4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, on the request of any Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing, or distribution arrangements in another Party. |
5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex 3.2. | 5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex 3.2. |
NO CORRESPONDING PARAGRAPH | 6. Neither a Central American Party nor the Dominican Republic may, as a condition for engaging in importation or for the import of a good, require a person of another Party to establish or maintain a contractual or other relationship with a dealer in its territory. |
NO CORRESPONDING PARAGRAPH | 7. Neither a Central American Party nor the Dominican Republic may remedy a violation or alleged violation of any law, regulation, or other measure regulating or otherwise relating to the relationship between any dealer in its territory and any person of another Party, by prohibiting or restricting the importation of any good of another Party. |
NO CORRESPONDING DEFINITION |
8. For purposes of this Article: dealer means a person of a Party who is responsible for the distribution, agency, concession, or representation in the territory of that Party of goods of another Party; and |
NO CORRESPONDING DEFINITION | remedy means to obtain redress or impose a penalty, including through a provisional, precautionary, or permanent measure. |
Article 3.9: Import Licensing |
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NO CORRESPONDING ARTICLE |
1. No Party may adopt or maintain a
measure that is inconsistent with the Import Licensing Agreement.
2. Promptly after entry into force of this Agreement, each Party shall notify the other Parties of any existing import licensing procedures, and thereafter shall notify the other Parties of any new import licensing procedure and any modification to its existing import licensing procedures, within 60 days before it takes effect. A notification provided under this Article shall:
3. No Party may apply an import licensing procedure to a good of another Party unless it has provided notification in accordance with paragraph 2. |
Article 3.12: Administrative Fees and Formalities | Article 3.10: Administrative Fees and Formalities |
1. Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994 and its interpretive notes, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charge applied consistently with Article III:2 of GATT 1994, and antidumping and countervailing duties) imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes. | 1. Each Party shall ensure, in accordance with Article VIII:1 of the GATT 1994 and its interpretive notes, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charge applied consistently with Article III:2 of the GATT 1994, and antidumping and countervailing duties) imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic products or a taxation of imports or exports for fiscal purposes. |
2. Neither Party may require consular transactions, including related fees and charges, in connection with the importation of any good of the other Party. | 2. No Party may require consular transactions, including related fees and charges, in connection with the importation of any good of another Party. |
3. Each Party shall make available through the Internet or a comparable computerbased telecommunications network a current list of the fees and charges it imposes in connection with importation or exportation. | 3. Each Party shall make available and maintain through the Internet a current list of the fees and charges it imposes in connection with importation or exportation. |
4. The United States shall eliminate its merchandise processing fee on originating goods of Chile. | 4. The United States shall eliminate its merchandise processing fee on originating goods. |
Article 3.13: Export Taxes | Article 3.11: Export Taxes |
Neither Party may adopt or maintain any duty, tax, or other charge on the export of any good to the territory of the other Party, unless such duty, tax, or charge is adopted or maintained on any such good when destined for domestic consumption. |
Except as
provided in Annex 3.10, no
Party may adopt or maintain any duty, tax, or other charge on the
export of any good to the territory of
another Party, unless such
duty, tax, or charge is adopted or maintained on any such good:
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Article 3.14: Luxury Tax |
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Chile shall eliminate the Luxury Tax established in Article 46 of Decreto Ley 825 of 1974, according to the schedule set out in Annex 3.14. | NO CORRESPONDING ARTICLE |
Section E - Other Measures
Article 3.15: Distinctive Products |
Section E: Other Measures Article 3.12: Distinctive Products |
1. Chile shall recognize Bourbon Whiskey and Tennessee Whiskey, which is a straight Bourbon Whisky authorized to be produced only in the State of Tennessee, as distinctive products of the United States. Accordingly, Chile shall not permit the sale of any product as Bourbon Whiskey or Tennessee Whiskey, unless it has been manufactured in the United States in accordance with the laws and regulations of the United States governing the manufacture of Bourbon Whiskey and Tennessee Whiskey. | 1. Each Central American Party and the Dominican Republic shall recognize Bourbon Whiskey and Tennessee Whiskey, which is a straight Bourbon Whiskey authorized to be produced only in the State of Tennessee, as distinctive products of the United States. Accordingly, those Parties shall not permit the sale of any product as Bourbon Whiskey or Tennessee Whiskey, unless it has been manufactured in the United States in accordance with the laws and regulations of the United States governing the manufacture of Bourbon Whiskey and Tennessee Whiskey. |
2. The United States shall recognize Pisco Chileno (Chilean Pisco), Pajarete, and Vino Asoleado, which is authorized in Chile to be produced only in Chile, as distinctive products of Chile. Accordingly, the United States shall not permit the sale of any product as Pisco Chileno (Chilean Pisco), Pajarete, or Vino Asoleado, unless it has been manufactured in Chile in accordance with the laws and regulations of Chile governing the manufacture of Pisco, Pajarete, and Vino Asoleado. | 2. At the request of a Party, the Committee on Trade in Goods shall consider whether to recommend that the Parties amend the Agreement to designate a good as a distinctive product for purposes of this Article. |
Section F - Agriculture |
Section F: Agriculture Article 3.13: Administration and Implementation of Tariff-Rate Quotas |
NO CORRESPONDING ARTICLE |
1. Each Party shall implement and
administer the tariff-rate quotas for agricultural goods set out in
Appendix I or, if applicable,
Appendix II or III to its Schedule to Annex 3.3 (hereafter “TRQs”)
in accordance with Article XIII of the GATT 1994, including its
interpretive notes, and the Import Licensing Agreement.
2. Each Party shall ensure that:
3. Each Party shall strive to administer its TRQs in a manner that allows importers to fully utilize import quotas. 4. No Party may condition application for, or utilization of, import licenses or quota allocations under its TRQs on the re-export of an agricultural good. 5. No Party may count food aid or other non-commercial shipments in determining whether an import quota under its TRQs has been filled. 6. On request of any Party, an importing Party shall consult with the requesting Party regarding the administration of its TRQs. |
Article 3.16: Agricultural Export Subsidies |
Article 3.14: Agricultural Export Subsidies |
1. The Parties share the objective of the multilateral elimination of export subsidies for agricultural goods and shall work together toward an agreement in the World Trade Organization to eliminate those subsidies and prevent their reintroduction in any form. | 1. The Parties share the objective of the multilateral elimination of export subsidies for agricultural goods and shall work together toward an agreement in the WTO to eliminate those subsidies and prevent their reintroduction in any form. |
2. Except as provided in paragraph 3, neither Party shall introduce or maintain any export subsidy on any agricultural good destined for the territory of the other Party. | 2. Except as provided in paragraph 3, no Party may introduce or maintain any export subsidy on any agricultural good destined for the territory of another Party. |
3. Where an exporting Party considers that a non-Party is exporting an agricultural good to the territory of the other Party with the benefit of export subsidies, the importing Party shall, on written request of the exporting Party, consult with the exporting Party with a view to agreeing on specific measures that the importing Party may adopt to counter the effect of such subsidized imports. If the importing Party adopts the agreed-upon measures, the exporting Party shall refrain from applying any export subsidy to exports of such good to the territory of the importing Party. | 3. Where an exporting Party considers that a non-Party is exporting an agricultural good to the territory of another Party with the benefit of export subsidies, the importing Party shall, on written request of the exporting Party, consult with the exporting Party with a view to agreeing on specific measures that the importing Party may adopt to counter the effect of such subsidized imports. If the importing Party adopts the agreed-on measures, the exporting Party shall refrain from applying any subsidy to its exports of the good to the territory of the importing Party. If the importing Party does not adopt the agreed-on measures, the exporting Party may apply an export subsidy on its exports of the good to the territory of the importing Party only to the extent necessary to counter the trade-distorting effect of subsidized exports of the good from the non-Party to the importing Party’s territory. |
Article
3.17: Agricultural |
NO CORRESPONDING ARTICLE |
1. Where a Party adopts or maintains
a measure respecting the classification, grading, or marketing of a
domestic agricultural good, or a measure to expand, maintain, or
develop its domestic market for an agricultural good, it shall
accord treatment to a like good of the other Party that is no less
favorable than it accords under the measure to the domestic
agricultural good, regardless of whether the good is intended for
direct consumption or for processing.
2. Paragraph 1 shall be without prejudice to the rights of either Party under the WTO Agreement or under this Agreement regarding measures respecting the classification, grading, or marketing of an agricultural good. 3. The Parties hereby establish a Working Group on Agricultural Trade, comprising representatives of the Parties, which shall meet annually or as otherwise agreed. The Working Group shall review, in coordination with the Committee on Technical Barriers to Trade established in Article 7.8 (Committee on Technical Barriers to Trade), the operation of agricultural grade and quality standards and programs of expansion and development that affect trade between the Parties, and shall resolve any issues that may arise regarding the operation of those standards and programs. The Group shall report to the Committee on Trade in Goods established in Article 3.23. 4. Each Party shall recognize the other Party’s grading programs for beef, as set out in Annex 3.17. |
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Annex 3.17
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NO
CORRESPONDING ANNEX
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Further to Article 3.17(4), this
Annex sets out commitments of each Party to recognize the other
Party’s grading programs for beef.
Background on the Chilean and U.S. Grading Programs The Official Chilean “Norms” for grading beef (Norma Chilena 1306-2002) provide for five categories (V, C, U, N, and O) that differentiate the beef carcass population based on a combination of yield and palatability characteristics. Those characteristics include sex class, maturity as determined by dentition, and a subjective overall fat covering score. The “V” and “C” classifications are perceived as highest in “value,” while the “U” and “N” classifications are considered the lowest in “value.” The “O” classification applies only to calves. Bulls in Chile are only eligible for the “U” and “N” categories. The Official United States Standards for Grades of Carcass Beef outline two distinct types of beef grades for use in the United States – quality grades and yield grades. Beef carcasses may carry a quality grade, a yield grade, both a quality and a yield grade, or may be left ungraded. USDA quality grades indicate expected palatability or eating satisfaction of the meat and USDA yield grades are estimates of the percentage of a carcass that yields boneless, closely trimmed retail cuts from the round, loin, rib and chuck. USDA beef quality grades are USDA Prime, USDA Choice, USDA Select, USDA Standard, USDA Commercial, USDA Utility, USDA Cutter, and USDA Canner. Beef steers and heifers are eligible for all the quality grade designations. Cows are eligible for all but the USDA Prime grade. Bullocks may only be graded USDA Prime, USDA Choice, USDA Select, USDA Standard, and USDA Utility. Bulls may not be quality graded. Because grading is voluntary in the United States, not all carcasses are quality graded. Beef products merchandised as ungraded in the United States usually originate from those carcasses that did not qualify for one of the highest three grades (USDA Prime, USDA Choice, and USDA Select). The U.S. industry generally terms ungraded beef carcasses and their resulting cuts as "No Roll" beef, because a grade stamp has not been rolled on the carcass. For the USDA quality grade standards, maturity and marbling are the major considerations in beef quality grading. Because most beef that packers market in the United States is not in carcass form, but instead is in the form of vacuum packaged subprimal cuts, only the quality grade is routinely used as a value determining trait in the marketing of beef products in the United States and ultimately passed on to the consumer. Accordingly, Article 3.17 and this Annex do not apply to USDA yield grades. Commitments Regarding Mutual Recognition of the Chilean and U.S. Grading Programs The Parties confirm their shared understanding that: 1. Chile acknowledges that USDA’s Agricultural Marketing Service (AMS) is a competent entity of grading quality, certifying all materials referred to in Article No. 5 of Regulation No. 19.162, with respect to meats exported to Chile from the United States. 2. The United States recognizes the competency of certification entities inscribed in the Registro de Certificadores de Carne division of the Servicio Agrícola y Ganadero of Chile (SAG) to certify Chilean meats destined toward that market.
4. The comparative beef cut nomenclature table set out in Appendix 3.17-A shall serve as a reference for the labeling of beef traded between the two markets under the terms of Article 3.17 and this Annex. 5. The standards of grading systems employed by Chile and the United States are described in Appendix 3.17-B. The Parties may modify Appendix 3.17-B by means of exchanges of letters between the USDA, AMS and the SAG. Furthermore, by means of written communications, the USDA, AMS, and the SAG may institute and modify standards of Chilean meat cuts and North American meat cuts. 6. USDA graded beef (e.g., USDA Prime, USDA Choice, and USDA Select) produced in the United States may be exported to Chile provided that a label indicates its Chilean equivalent and its country of origin. 7. Beef produced in Chile may be exported to the United States provided that the label or sticker indicates the applicable Chilean norm and country of origin. 8. AMS and SAG shall work cooperatively to assist the beef industries of the United States and Chile in following these procedures. |
Appendix 3.17-A
Comparative Beef Cut Nomenclature Table / Equivalencia De Cortes |
NO CORRESPONDING APPENDIX |
Comparative Beef Cut Nomenclature Table / Equivalencia De Cortes |
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Appendix
3.17-B |
NO CORRESPONDING APPENDIX |
Comparison of Chilean Beef Norms and USDA Beef Quality Grades |
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Article 3.18: Agricultural Safeguard Measures |
Article 3.15: Agricultural Safeguard Measures |
1. Notwithstanding Article 3.3(2),
each Party may impose a safeguard measure in the form of additional
import duties, consistent with paragraphs 2 through 7, on an
originating agricultural good listed in its section of Annex 3.18.
The sum of any such additional duty and any import duties or other
charges applied pursuant to Article 3.3(2) shall not exceed the
lesser of:
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1. Notwithstanding Article
3.3, each Party may
apply a measure in the form
of an additional import
duty on an agricultural good
listed in that Party’s Schedule to
Annex 3.15, provided that the
conditions in paragraphs 2 through 7 are met. The sum of any
such additional import duty
and any other customs duty on such
good shall not exceed the lesser of:
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2. A Party may impose a safeguard
measure only if the unit import price of the good enters the Party’s
customs territory at a level below a trigger price for that good as
set out in that Party’s section of Annex 3.18.
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2. A Party may apply an agricultural safeguard measure during any calendar year if the quantity of imports of the good during such year exceeds the trigger level for that good set out in its Schedule to Annex 3.15. |
3. The additional duties under
paragraph 2 shall be set in accordance with the following schedule:
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3. The additional duty under paragraph 1 shall be set according to each Party’s Schedule to Annex 3.15. |
4. Neither Party may, with respect
to the same good, at the same time:
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4. No Party may
apply an
agricultural safeguard measure and at the same time
apply or maintain:
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5. Neither Party may impose a safeguard measure on a good that is subject to a measure that the Party has imposed pursuant to Article XIX of GATT 1994 and the Safeguards Agreement, and neither Party may continue maintaining a safeguard measure on a good that becomes subject to a measure that the Party imposes pursuant to Article XIX of GATT 1994 and the Safeguards Agreement. |
5. No Party may
apply or
maintain an agricultural safeguard measure:
|
6. A Party may impose a safeguard measure only during the 12-year period beginning on the date of entry into force of this Agreement. Neither Party may impose a safeguard measure on a good once the good achieves duty-free status under this Agreement. Neither Party may impose a safeguard measure that increases a zero in-quota duty on a good subject to a tariff-rate quota. | 6. Each Party shall implement an agricultural safeguard measure in a transparent manner. Within 60 days after applying a measure, a Party shall notify any Party whose good is subject to the measure, in writing, and shall provide it relevant data concerning the measure. On request, the Party applying the measure shall consult with any Party whose good is subject to the measure regarding application of the measure. |
7. Each Party shall implement any safeguard measure in a transparent manner. Within 60 days after imposing a measure, a Party shall notify the other Party, in writing, and shall provide it relevant data concerning the measure. On request, the Party imposing the measure shall consult with the other Party with respect to the conditions of application of the measure. | 7. A Party may maintain an agricultural safeguard measure only until the end of the calendar year in which the Party applies the measure. |
8. The general operation of the agricultural safeguard provisions and the trigger prices for their implementation may be the subject of discussion and review in the Committee on Trade in Goods. |
8. The Commission and the Committee on Agricultural Trade may review
the implementation and operation of this Article.
|
9. For purposes of this Article, safeguard measure means an agricultural safeguard measure described in paragraph 1. | 9. For purposes of this Article and Annex 3.15, agricultural safeguard measure means a measure described in paragraph 1. |
Annex 3.18 |
NO CORRESPONDING ANNEX |
NO CORRESPONDING ANNEX |
Annex
3.15 |
General Notes 1. For each good listed in a Party’s Schedule to this Annex for which the agricultural safeguard trigger level is set out in that Schedule as a percentage of the applicable tariff-rate quota (TRQ), the trigger level in any year shall be determined by multiplying the in-quota quantity for that good for that year, as set out in Appendix I or, if applicable, Appendix II or III to the Party’s Schedule to Annex 3.3, by the applicable percentage. For each good listed in a Party’s Schedule to this Annex for which the trigger level is set out as a fixed initial amount in the Party’s Schedule, the trigger level set out in the Schedule shall be the trigger level in year one. The trigger level in any subsequent year shall be determined by adding to that amount the quantity derived by applying the applicable simple annual trigger growth rate to that amount. For purposes of this Annex, the term “year one” shall have the meaning given to that term in Annex 3.3. 2. For purposes of this Annex, prime and choice beef shall mean prime and choice grades of beef as defined in the United States Standards for Grades of Carcass Beef, promulgated pursuant to the Agricultural Marketing Act of 1946 (7 U.S.C. §§ 1621-1627), as amended.
7. For purposes of this Annex: Central America or Dominican Republic good shall mean a good that satisfies the requirements of Chapter Four (Rules of Origin and Origin Procedures), except that operations performed in or material obtained from the United States shall be considered as if the operations were performed in a non-Party and the material was obtained from a non-Party; and United States good shall mean a good that satisfies the requirements of Chapter Four (Rules of Origin and Origin Procedures), except a good produced entirely in and exclusively of materials obtained from the territory of a Central American Party, the Dominican Republic, or a non-Party. Schedule of the Dominican Republic Schedule of the United States22 22 For purposes of determining the country-specific application of agricultural safeguard measures, the United States shall apply the non-preferential rules of origin that it applies in the normal course of trade. |
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NO CORRESPONDING ARTICLE |
Article 3.16: Sugar Compensation Mechanism |
1. In any year, the United States
may, at its option, apply a mechanism that results in compensation
to a Party’s exporters of sugar goods in lieu of according duty-free
treatment to some or all of the duty-free quantity of sugar goods
established for that Party in Appendix I to the Schedule of the
United States to Annex 3.3. Such compensation shall be equivalent to
the estimated economic rents that the Party’s exporters would have
obtained on exports to the United States of any such amounts of
sugar goods and shall be provided within 30 days after the United
States exercises this option. The United States shall notify the
Party at least 90 days before it exercises this option and, on
request, shall enter into consultations with the Party regarding
application of the mechanism. 2. For purposes of this Article, sugar good means a good provided for in the subheadings listed in subparagraph 3(c) of Appendix I to the Schedule of the United States to Annex 3.3. |
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NO CORRESPONDING ARTICLE |
Article 3.17: Consultations on Trade in Chicken |
The Parties shall consult on, and review the implementation and operation of the Agreement as it relates to, trade in chicken in the ninth year after the date of entry into force of this Agreement. | |
NO CORRESPONDING ARTICLE |
Article 3.18: Agriculture Review Commission |
The Parties shall establish an Agriculture Review Commission in the 14th year after the date of entry into force of this Agreement to review the implementation and operation of the Agreement as it relates to trade in agricultural goods. The Agriculture Review Commission shall evaluate the effects of trade liberalization under the Agreement, the operation of Article 3.15 and possible extension of agricultural safeguard measures under that Article, progress toward global agricultural trade reform in the WTO, and developments in world agricultural markets. The Agriculture Review Commission shall report its findings and any recommendations to the Commission. |
Article 3.19: Committee on Agricultural Trade | |
see
Article 3.17.3
|
1. Not later than 90 days after the date of entry into force of this
Agreement, the Parties shall establish a
Committee on Agricultural
Trade, comprising representatives of each Party.
2. The Committee shall provide a forum for:
3. The Committee shall meet at least once a year unless it decides otherwise. Meetings of the Committee shall be chaired by the representatives of the Party hosting the meeting. 4. All decisions of the Committee shall be taken by consensus, unless the Committee otherwise decides. |
Section G - Textiles and Apparel |
Section G: Textiles and Apparel Article 3.20: Refund of Customs Duties |
NO CORRESPONDING ARTICLE |
1. On request of an importer, a
Party shall refund any excess customs duties paid in connection with
the importation into its territory of an originating textile or
apparel good between January 1, 2004 and the date of entry into
force of this Agreement for that Party. For purposes of applying
this Article, the importing Party shall consider a good to be
originating if the Party would have considered the good to be
originating had it been imported into its territory on the date of
entry into force of this Agreement for that Party.
2. Paragraph 1 shall not apply with respect to textile or apparel goods imported into, or imported from, the territory of a Party if it provides written notice to the other Parties by no later than 90 days before the date of entry into force of this Agreement for that Party that it will not comply with paragraph 1. 3. Notwithstanding paragraph 2, paragraph 1 shall apply with respect to textile or apparel goods imported from the territory of a Party if it provides written notice to the other Parties by no later than 90 days before the date of entry into force of this Agreement for that Party that it shall provide a benefit for textile or apparel goods imported into its territory that the importing and exporting Parties have agreed is equivalent to the benefit provided in paragraph 1. 4. This Article shall not apply to a textile or apparel good that qualifies for preferential tariff treatment under Article 3.21, 3.27, or 3.28. |
NO CORRESPONDING ARTICLE |
Article 3.21: Duty-Free Treatment for Certain Goods |
1. An importing and an exporting Party may identify at any time particular textile or apparel goods of the exporting Party that they mutually agree fall within:
2. The importing Party shall grant duty-free treatment to goods so identified, if certified by the competent authority of the exporting Party. |
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NO CORRESPONDING ARTICLE |
Article 3.22: Elimination of Existing Quantitative Restrictions |
Not later than the date of entry into force of this Agreement, the United States shall eliminate the existing quantitative restrictions it maintains under the Agreement on Textiles and Clothing as set out in Annex 3.22. | |
Article 3.19: Bilateral Emergency Actions | Article 3.23: Textile Safeguard Measures |
1. If, as a result of the
elimination of a duty provided for in this Agreement, a textile or
apparel good benefiting from preferential tariff treatment under
this Agreement is being imported into the territory of a Party in
such increased quantities, in absolute terms or relative to the
domestic market for that good, and under such conditions as to cause
serious damage, or actual threat thereof, to a domestic industry
producing a like or directly competitive good, the importing Party
may, to the extent and for such time as may be necessary to prevent
or remedy such damage and to facilitate adjustment, take emergency
action, consisting of an increase in the rate of duty on the good to
a level not to exceed the lesser of:
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1. Subject to the following paragraphs, and during the transition
period only, if, as a result of the reduction or elimination
of a duty provided for in this Agreement, a textile or apparel good
of another Party is being
imported into the territory of a Party in such increased quantities,
in absolute terms or relative to the domestic market for that good,
and under such conditions as to cause serious damage, or actual
threat thereof, to a domestic industry producing a like or directly
competitive good, the importing Party may, to the
extent necessary to prevent
or remedy such damage and to facilitate adjustment,
apply a textile safeguard measure
to that good, consisting of an increase in the rate of duty
on the good to a level not to exceed the lesser of:
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2. In determining serious damage, or
actual threat thereof, the importing Party:
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2. In determining serious damage, or
actual threat thereof, the importing Party:
|
3. The importing Party may take an emergency action under this Article only following an investigation by its competent authorities. | 3. The importing Party may apply a textile safeguard measure only following an investigation by its competent authority. |
4. The importing Party shall deliver to the other Party, without delay, written notice of its intent to take emergency action, and, on request of the other Party, shall enter into consultations with that Party. | 4. If, on the basis of the results of the investigation under paragraph 3, the importing Party intends to apply a textile safeguard measure, the importing Party shall promptly provide written notice to the exporting Party of its intent to apply a textile safeguard measure, and on request shall enter into consultations with that Party. The importing Party and the exporting Party shall begin the consultations without delay and shall complete them within 60 days of the date of receipt of the request. The importing Party shall make a decision on whether to apply a safeguard measure within 30 days of completion of the consultations. |
5. The following conditions and
limitations shall apply to any emergency action taken under this
Article:
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5. The following conditions and
limitations apply to any
textile safeguard measure:
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6. The Party taking an emergency
action under this Article shall provide to the Party against whose
good the action is taken mutually agreed trade liberalizing
compensation in the form of concessions having substantially
equivalent trade effects or equivalent to the value of the
additional duties expected to result from the emergency action. Such
concessions shall be limited to textile and apparel goods, unless
the Parties otherwise agree. If the Parties are unable to agree on
compensation, the Party against whose good the emergency action is
taken may take tariff action having trade effects substantially
equivalent to the trade effects of the emergency action taken under
this Article. Such tariff action may be taken against any goods of
the Party taking the emergency action. The Party taking the tariff
action shall apply such action only for the minimum period necessary
to achieve the substantially equivalent trade effects. The importing
Party's obligation to provide trade compensation and the exporting
Party's right to take tariff action shall terminate when the
emergency action terminates.
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6. The Party applying a textile safeguard measure shall provide to the Party against whose good the measure is taken mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the textile safeguard measure. Such concessions shall be limited to textile or apparel goods, unless the consulting Parties otherwise agree. If the consulting Parties are unable to agree on compensation within 30 days of application of a textile safeguard measure, the Party against whose good the measure is taken may take tariff action having trade effects substantially equivalent to the trade effects of the textile safeguard measure. Such tariff action may be taken against any goods of the Party applying the measure. The Party taking the tariff action shall apply such action only for the minimum period necessary to achieve the substantially equivalent trade effects. The importing Party’s obligation to provide trade compensation and the exporting Party’s right to take tariff action shall terminate when the textile safeguard measure terminates. |
7. Nothing in this Agreement shall be construed to limit a Party's right to restrain imports of textile and apparel goods in a manner consistent with the Agreement on Textiles and Clothing or the Safeguards Agreement. However, a Party may not take or maintain an emergency action under this Article against a textile or apparel good that is subject, or becomes subject, to a safeguard measure that a Party takes pursuant to either such WTO agreement. |
7. (a) Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the Safeguards Agreement.
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Article 3.20: Rules of Origin and Related Matters |
Article 3.25: Rules of Origin and Related Matters |
Application of Chapter Four
1. Except as provided in this Section, Chapter Four (Rules of Origin and Origin Procedures) applies to textile and apparel goods. 2. The rules of origin set forth in this Agreement shall not apply in determining the country of origin of a textile or apparel good for non-preferential purposes. |
NO CORRESPONDING PARAGRAPH |
Consultations 3. On the request of either Party, the Parties shall consult to consider whether the rules of origin applicable to particular textile and apparel goods should be revised to address issues of availability of supply of fibers, yarns or fabrics in the territories of the Parties. |
Consultations
on Rules of Origin 1. On request of a Party, the Parties shall, within 30 days after the request is delivered, consult on whether the rules of origin applicable to a particular textile or apparel good should be modified. |
4. In the consultations referred to in paragraph 3, each Party shall consider all data presented by the other Party showing substantial production in its territory of the particular good. The Parties shall consider that substantial production has been shown if a Party demonstrates that its domestic producers are capable of supplying commercial quantities of the good in a timely manner. | 2. In the consultations referred to in paragraph 1, each Party shall consider all data that a Party presents demonstrating substantial production in its territory of the good. The Parties shall consider that there is substantial production if a Party demonstrates that its domestic producers are capable of supplying commercial quantities of the good in a timely manner. |
5. The Parties shall endeavor to conclude consultations within 60 days of a request. An agreement between the Parties resulting from the consultations shall supersede any prior rule of origin for such good when approved by the Parties in accordance with Article 24.2 (Amendments). | 3. The Parties shall endeavor to conclude the consultations within 90 days after delivery of the request. If the Parties reach an agreement to modify a rule of origin for a particular good, the agreement shall supersede that rule of origin when approved by the Parties in accordance with Article 19.1.3(b) (The Free Trade Commission). |
NO CORRESPONDING PARAGRAPH |
Fabrics, Yarns, and Fibers Not
Available in Commercial Quantities
5. At the request of an interested entity made no earlier than six months after the United States has added a fabric, yarn, or fiber in an unrestricted quantity to Annex 3.25 pursuant to paragraph 4, the United States may, within 30 business days after it receives the request:
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De Minimis 6. A textile or apparel good provided for in Chapters 50 through 63 of the Harmonized System that is not an originating good, because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in Annex 4.1 (Specific Rules of Origin), shall nonetheless be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than seven percent of the total weight of that component. Notwithstanding the preceding sentence, a good containing elastomeric yarns in the component of the good that determines the tariff classification of the good shall be considered to be an originating good only if such yarns are wholly formed in the territory of a Party.
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De Minimis 7. A textile or apparel good that is not an originating good because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in Annex 4.1 (Specific Rules of Origin), shall nonetheless be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than ten percent of the total weight of that component.4 4 For greater certainty, when the good is a fiber, yarn, or fabric, the “component of the good that determines the tariff classification of the good” is all of the fibers in the yarn, fabric, or group of fibers. 8. Notwithstanding paragraph 7, a good containing elastomeric yarns5 in the component of the good that determines the tariff classification of the good shall originate only if such yarns are wholly formed in the territory of a Party.6 5 For greater certainty, the term “elastomeric yarns” does not include latex. 6 For purposes of this paragraph, “wholly formed” means that all the production processes and finishing operations, starting with the extrusion of filaments, strips, film, or sheet, and including slitting a film or sheet into strip, or the spinning of all fibers into yarn, or both, and ending with a finished yarn or plied yarn, took place in the territory of a Party. |
Treatment of Sets 7. Notwithstanding the good specific rules in Annex 4.1 (Specific Rules of Origin), textile and apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3 of the Harmonized System shall not be regarded as originating goods unless each of the goods in the set is an originating good or the total value of the non-originating goods in the set does not exceed 10 percent of the customs value of the set. Preferential Tariff Treatment for Non-Originating Cotton and Man-made Fiber Fabric Goods (Tariff Preference Levels) 8. Subject to paragraph 9, the following goods, if they meet the applicable conditions for preferential tariff treatment under this Agreement other than the condition that they be originating goods, shall be accorded preferential tariff treatment as if they were originating goods:
9. The treatment described in paragraph 8 shall be limited to goods imported into the territory of a Party up to an annual total quantity of 1,000,000 SME. Preferential Tariff Treatment for Non-Originating Cotton and Man-made Fiber Apparel Goods (Tariff Preference Levels) 10. Subject to paragraph 11, cotton or man-made fiber apparel goods provided for in Chapters 61 and 62 of the Harmonized System that are both cut (or knit to shape) and sewn or otherwise assembled in the territory of a Party from fabric or yarn produced or obtained outside the territory of a Party, and that meet the applicable conditions for preferential tariff treatment under this Agreement other than the condition that they be originating goods, shall be accorded preferential tariff treatment as if they were originating goods. 11. The treatment described in paragraph 10 shall be limited as follows:
Certification for Tariff Preference Level 12. A Party, through its competent authorities, may require that an importer claiming preferential tariff treatment for a textile or apparel good under paragraph 8 or 10 present to such competent authorities at the time of importation a certification of eligibility for preferential tariff treatment under such paragraph. A certification of eligibility shall be prepared by the importer and shall consist of information demonstrating that the good satisfies the requirements for preferential tariff treatment under paragraph 8 or 10. |
Treatment of Sets 9. Notwithstanding the specific rules of origin in Annex 4.1 (Specific Rules of Origin), textile or apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3 of the Harmonized System, shall not be regarded as originating goods unless each of the products in the set is an originating good or the total value of the nonoriginating goods in the set does not exceed ten percent of the adjusted value of the set. Treatment of Nylon Filament Yarn 10. A textile or apparel good that is not an originating good because certain yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in Annex 4.1 (Specific Rules of Origin), shall nonetheless be considered to be an originating good if the yarns are those described in section 204(b)(3)(B)(vi)(IV) of the Andean Trade Preference Act (19 U.S.C. § 3203(b)(3)(B)(vi)(IV)). |
Article 3.21: Customs Cooperation |
Article 3.24: Customs Cooperation3 3 Paragraphs 2, 3, 4, 6, and 7 of this Article shall not apply between the Central American Parties or between any Central American Party and the Dominican Republic. |
1. The Parties shall cooperate for
purposes of:
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1. The
customs authorities of the Parties shall
cooperate for purposes of:
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2. On the request of the importing Party, the exporting Party shall conduct a verification for purposes of enabling the importing Party to determine that a claim of origin for a textile or apparel good is accurate. The exporting Party shall conduct such a verification, regardless of whether an importer claims preferential tariff treatment for the good. The exporting Party also may conduct such a verification on its own initiative. |
2. (a) On the written request of an importing Party, an exporting Party shall conduct a verification for purposes of enabling the importing Party to determine:
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3. Where the importing Party has a reasonable suspicion that an exporter or producer of the exporting Party is engaging in unlawful activity relating to trade in textile and apparel goods, the importing Party may request the exporting Party to conduct a verification for purposes of enabling the importing Party to determine that the exporter or producer is complying with applicable customs laws, regulations, and procedures regarding trade in textile and apparel goods, including laws, regulations, and procedures that the exporting Party adopts and maintains pursuant to this Agreement and laws, regulations, and procedures of either Party implementing other international agreements regarding trade in textile and apparel goods, and to determine that claims of origin regarding textile or apparel goods exported or produced by that person are accurate. For purposes of this paragraph, a reasonable suspicion of unlawful activity shall be based on factors including relevant factual information of the type set forth in Article 5.5 (Cooperation) or that, with respect to a particular shipment, indicates circumvention by the exporter or producer of applicable customs laws, regulations, or procedures regarding trade in textile and apparel goods, including laws, regulations, or procedures adopted to implement this Agreement, or international agreements affecting trade in textile and apparel goods. | 3. The importing Party, through its competent authority, may assist in a verification conducted under paragraph 2(a), or, at the request of the exporting Party, undertake such a verification, including by conducting, along with the competent authority of the exporting Party, visits in the territory of the exporting Party to the premises of an exporter, producer, or any other enterprise involved in the movement of textile or apparel goods from the territory of the exporting Party to the territory of the importing Party. |
4. The importing Party, through its competent authorities, may undertake or assist in a verification conducted pursuant to paragraph 2 or 3, including by conducting, along with the competent authorities of the exporting Party, visits in the territory of the exporting Party to the premises of an exporter, producer, or any other enterprise involved in the movement of textile or apparel goods from the territory of the exporting Party to the territory of the importing Party. |
4. (a) The competent authority of the importing
Party shall provide a written request to the competent authority of the
exporting Party 20 days before the proposed date of a visit under paragraph 3.
The request shall identify the competent authority making the request, the names
and titles of the authorized personnel that will conduct the visit, the reason
for the visit, including a description of the type of goods that are the subject
of the verification, and the proposed dates of the visit. (b) The competent authority of the exporting Party shall respond within 10 days of receipt of the request, and shall indicate the date on which authorized personnel of the importing Party may perform the visit. The exporting Party shall seek, in accordance with its laws, regulations, and procedures, permission from the enterprise to conduct the visit. If consent is not provided, the importing Party may deny preferential tariff treatment to the type of goods of the enterprise that would have been the subject of the verification, except that the importing Party may not deny preferential tariff treatment to such goods based solely on a postponement of the visit, if there is adequate reason for such postponement. (c) Authorized personnel of the importing and exporting Parties shall conduct the visit in accordance with the laws, regulations, and procedures of the exporting Party. (d) On completion of a visit, the importing Party shall provide the exporting Party with an oral summary of the results of the visit and provide it with a written report of the results of the visit within approximately 45 days of the visit. The written report shall include:
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5. Each Party shall provide to the other Party, consistent with its laws, regulations, and procedures, production, trade, and transit documents and other information necessary to conduct verifications under paragraphs 2 and 3. Any documents or information exchanged between the Parties in the course of such a verification shall be considered confidential, as provided for in Article 5.6 (Confidentiality). |
5. On request of a Party conducting a
verification under paragraph 2(a), a Party shall provide, consistent with its
laws, regulations, and procedures, production, trade, and transit documents and
other information necessary to conduct the verification. Where the providing
Party designates the information as confidential, Article 5.6 (Confidentiality)
shall apply. Notwithstanding the foregoing, a Party may publish the name of an
enterprise that: (a) the Party has determined to be engaged in intentional circumvention of laws, regulations, and procedures of any Party or international agreements affecting trade in textile or apparel goods; or (b) has failed to demonstrate that it produces, or is capable of producing, textile or apparel goods. |
6. While a verification is being
conducted, the importing Party may take appropriate action, which
may include suspending the application of preferential tariff
treatment to:
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6. (a) (i) During a verification conducted
under paragraph 2(a), if there is
insufficient information to support a claim for preferential tariff treatment,
the importing Party may take appropriate action, which may include suspending
the application of such treatment to: (A) in the case of a verification conducted under paragraph 2(a)(i), the textile or apparel good for which a claim for preferential tariff treatment has been made; and (B) in the case of a verification conducted under paragraph 2(a)(ii), any textile or apparel good exported or produced by the enterprise subject to that verification for which a claim for preferential tariff treatment has been made.
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7. The Party conducting a verification under paragraph 2 or 3 shall provide the other Party with a written report on the results of the verification, which shall include all documents and facts supporting any conclusion that the Party reaches. | 7. Not later than 45 days after it completes a verification conducted under paragraph 2(a), the exporting Party shall provide the importing Party a written report on the results of the verification. The report shall include all documents and facts supporting any conclusion that the exporting Party reaches. After receiving the report, the importing Party shall notify the exporting Party of any action it will take under paragraph 6(a)(ii) or (iii) or 6(b)(ii) or (iii), based on the information provided in the report. |
8. (a) If the importing Party is
unable to make the determination described in paragraph 2 within 12
months after its request for a verification, it may take action as
permitted under its law with respect to the textile and apparel good
subject to the verification, and with respect to similar goods
exported or produced by the person that exported or produced the
good. (b) If the importing Party is unable to make the determinations described in paragraph 3 within 12 months after its request for a verification, it may take action as permitted under its law with respect to any textile or apparel goods exported or produced by the person subject to the verification. |
8. On the written request of a Party, two or more Parties shall enter into consultations to resolve any technical or interpretive difficulties that may arise, or to discuss ways to improve customs cooperation, regarding the application of this Article. Unless the consulting Parties otherwise agree, consultations shall begin within 30 days after delivery of the request, and conclude within 90 days after delivery. |
9. Prior to commencing appropriate
action under paragraph 8, the importing Party shall notify the other
Party. The importing Party may continue to take appropriate action
under paragraph 8 until it receives information sufficient to enable
it to make the determination described in paragraph 2 or 3, as the
case may be. 10. Chile shall implement its obligations under paragraphs 2, 3, 6, 7, 8, and 9 no later than two years after the date of entry into force of this Agreement. Before Chile fully implements those provisions, if the importing Party requests a verification, the verification shall be conducted principally by that Party, including through means described in paragraph 4. Nothing in this paragraph shall be construed to waive or limit the importing Party's rights under paragraphs 6 and 8. 11. On the request of either Party, the Parties shall enter into consultations to resolve any technical or interpretive difficulties that may arise under this Article or to discuss ways to improve the effectiveness of their cooperative efforts. In addition, either Party may request technical or other assistance from the other Party in implementing this Article. The Party receiving such a request shall make every effort to respond favorably and promptly to it. |
9. A Party may request technical or other
assistance from any other Party in implementing this Article. The Party
receiving such a request shall make every effort to respond favorably and
promptly to it.
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NO CORRESPONDING ARTICLE | Article 3.26: Most-Favored-Nation Rates of Duty on Certain Goods |
For a textile or apparel good
provided for in chapters 61 through 63 of the Harmonized System that
is not an originating good, the United States shall apply its MFN
rate of duty only on the value of the assembled good minus the value
of fabrics formed in the United States, components knit-to-shape in
the United States, and any other materials of U.S. origin used in
the production of such a good, provided that the good is sewn or
otherwise assembled in the territory of another Party or Parties
with thread wholly formed in the United States, from fabrics wholly
formed in the United States and cut in one or more Parties, or from
components knit-to-shape in the United States, or both.7
7 For purposes of this paragraph, “wholly formed,” when used in reference to fabrics, means that all the production processes and finishing operations, starting with the weaving, knitting, needling, tufting, felting, entangling, or other process, and ending with a fabric ready for cutting or assembly without further processing, took place in the United States. The term “wholly formed,” when used in reference to thread, means that all the production processes, starting with the extrusion of filaments, strips, film, or sheet, and including slitting a film or sheet into strip, or the spinning of all fibers into thread, or both, and ending with thread, took place in the United States. |
NO CORRESPONDING ARTICLE |
Article 3.27: Preferential Tariff Treatment for Wool Apparel Goods Assembled in Costa Rica |
Annex 3.27 sets out provisions applicable to certain apparel goods of Costa Rica. | |
NO CORRESPONDING ARTICLE |
Article 3.28: Preferential Tariff Treatment for Non-Originating Apparel Goods of Nicaragua |
Annex 3.28 sets out provisions applicable to certain apparel goods of Nicaragua. | |
Article 3.22: Definitions | Article 3.29: Definitions |
For purposes of this Section: | For purposes of this Section: |
claim of origin means a claim that a textile or apparel good is an originating good or a good of a Party; | claim of origin means a claim that a textile or apparel good is an originating good or a good of a Party; |
exporting Party means the Party from whose territory a textile or apparel good is exported; | exporting Party means the Party from whose territory a textile or apparel good is exported; |
importing Party means the Party into whose territory a textile or apparel good is imported; | importing Party means the Party into whose territory a textile or apparel good is imported; |
NO CORRESPONDING DEFINITION | interested entity means a Party, a potential or actual purchaser of a textile or apparel good, or a potential or actual supplier of a textile or apparel good; |
SME means square meter equivalents, as calculated in accordance with the conversion factors set out in the Correlation: Textile and Apparel Categories with the Harmonized Tariff Schedule of the United States, 2002 (or successor publication), published by the United States Department of Commerce, International Trade Administration, Office of Textiles and Apparel, Trade and Data Division, Washington, D.C.; and | NO CORRESPONDING DEFINITION |
textile or apparel good means a good listed in the Annex to the Agreement on Textiles and Clothing. | textile or apparel good means a good listed in the Annex to the Agreement on Textiles and Clothing, except for those goods listed in Annex 3.29; |
NO CORRESPONDING DEFINITION | textile safeguard measure means a measure applied under Article 3.23.1; and |
NO CORRESPONDING DEFINITION | transition period means the five-year period beginning on the date of entry into force of this Agreement. |
Section H -
Institutional Provisions |
Section
H: Institutional Provisions |
1. The Parties hereby establish a Committee on Trade in Goods, comprising representatives of each Party. | 1. The Parties hereby establish a Committee on Trade in Goods, comprising representatives of each Party. |
2. The Committee shall meet on the request of either Party or the Commission to consider any matter arising under this Chapter, Chapter Four (Rules of Origin and Origin Procedures), or Chapter Five (Customs Administration). | 2. The Committee shall meet on the request of a Party or the Commission to consider any matter arising under this Chapter, Chapter Four (Rules of Origin and Origin Procedures), or Chapter Five (Customs Administration and Trade Facilitation). |
3. The Committee’s functions shall
include:
|
3. The Committee’s functions shall
include:
|
NO CORRESPONDING PARAGRAPH |
|
Section I - Definitions |
Section I:
Definitions |
For purposes of this Chapter:
AD Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement; |
For purposes of this Chapter:
AD Agreement means the WTO Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994; |
advertising films and recordings means recorded visual media or audio materials, consisting essentially of ../images and/or sound, showing the nature or operation of goods or services offered for sale or lease by a person established or resident in the territory of a Party, provided that such materials are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public, and provided that they are imported in packets that each contain no more than one copy of each film or recording and that do not form part of a larger consignment; | advertising films and recordings means recorded visual media or audio materials, consisting essentially of ../images and/or sound, showing the nature or operation of goods or services offered for sale or lease by a person established or resident in the territory of a Party, provided that such materials are of a kind suitable for exhibition to prospective customers, but not for broadcast to the general public; |
Agreement on Textiles and Clothing means the Agreement on Textiles and Clothing, which is part of the WTO Agreement; | Agreement on Textiles and Clothing means the WTO Agreement on Textiles and Clothing; |
agricultural goods means those goods referred to in Article 2 of the Agreement on Agriculture, which is part of the WTO Agreement; | agricultural goods means those goods referred to in Article 2 of the WTO Agreement on Agriculture; |
articles eligible for duty-free treatment under the U.S. Generalized System of Preferences does not include articles eligible only when imported from least-developed beneficiary developing countries or from beneficiary sub-Saharan African countries under the African Growth and Opportunity Act; | NO CORRESPONDING DEFINITION |
carrier media means any good of heading 8523 or 8524; | NO CORRESPONDING DEFINITION |
commercial samples of negligible value means commercial samples having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount in Chilean currency, or so marked, torn, perforated, or otherwise treated that they are unsuitable for sale or for use except as commercial samples; | commercial samples of negligible value means commercial samples having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount in the currency of another Party, or so marked, torn, perforated, or otherwise treated that they are unsuitable for sale or for use except as commercial samples; |
consular transactions means requirements that goods of a Party intended for export to the territory of the other Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas for commercial invoices, certificates of origin, manifests, shippers’ export declarations, or any other customs documentation required on or in connection with importation; | consular transactions means requirements that goods of a Party intended for export to the territory of another Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas for commercial invoices, certificates of origin, manifests, shippers’ export declarations, or any other customs documentation required on or in connection with importation; |
consumed
means:
|
consumed
means
|
duty-free means free of customs duty; | duty-free means free of customs duty; |
duty deferral program includes measures such as those governing foreign-trade zones, regímenes de zonas francas y regímenes aduaneros especiales, temporary importations under bond, bonded warehouses, and inward processing programs; | NO CORRESPONDING DEFINITION |
export subsidies shall have the meaning assigned to that term in Article 1(e) of the WTO Agreement on Agriculture, including any amendment of that article; | export subsidies shall have the meaning assigned to that term in Article 1(e) of the WTO Agreement on Agriculture, including any amendment of that article; |
goods intended for display or demonstration includes their component parts, ancillary apparatus, and accessories; | goods intended for display or demonstration includes their component parts, ancillary apparatus, and accessories; |
goods temporarily admitted for sports purposes means sports requisites for use in sports contests, demonstrations, or training in the territory of the Party into whose territory such goods are admitted; | goods temporarily admitted for sports purposes means sports requisites for use in sports contests, demonstrations, or training in the territory of the Party into whose territory such goods are admitted; |
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; | 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; |
NO CORRESPONDING DEFINITION | Import Licensing Agreement means the WTO Agreement on Import Licensing Procedures; |
performance requirement
means a requirement that:
|
performance requirement
means a requirement that:
|
NO CORRESPONDING DEFINITION |
|
printed advertising materials means those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials, and posters, that are used to promote, publicize, or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge; and | printed advertising materials means those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials, and posters, that are used to promote, publicize, or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge; and |
SCM Agreement means the Agreement on Subsidies and Countervailing Measures, which is part of the WTO Agreement | SCM Agreement means the WTO Agreement on Subsidies and Countervailing Measures. |
Annex 3.2
National Treatment and Import and Export Restrictions Section A - Measures of the United States |
Annex 3.2 |
Article 3.2 and Article 3.11 shall
not apply to:
|
Articles 3.2 and 3.8
shall not apply to:
|
Section B - Measures of Chile | Section A: Measures of Costa Rica | ||||||||||
1. Article 3.2 and Article 3.11
shall not apply to actions by Chile authorized by the Dispute
Settlement Body of the WTO.
2. Article 3.11 shall not apply to measures of Chile relating to imports of used vehicles.
|
Articles 3.2 and 3.8
shall not apply to:
(a) controls on the import of crude oil, its fuel, derivatives, asphalt, and gasoline pursuant to Law No. 7356 of September 6, 1993; (b) controls on the export of wood in logs and boards from forests pursuant to Law No. 7575 of April 16, 1996; (c) controls on the export of hydrocarbons pursuant to Law No. 7399 of May 3, 1994; (d) controls on the export of coffee pursuant to Law No. 2762 of June 21, 1961; (e) controls on the import and export of ethanol and crude rums pursuant to Law No. 8 of October 31, 1885; (f) controls to establish a minimum export price for bananas, pursuant to Law No. 7472 of January 19, 1995; and (g) actions authorized by the Dispute Settlement Body of the WTO. |
||||||||||
Section B: Measures of the Dominican Republic |
|||||||||||
NO CORRESPONDING SECTION |
Articles 3.2 and 3.8 shall not apply
to:
(a) controls on the importation of motor vehicles and motorcycles older than five years, and vehicles greater or equal to five tons older than 15 years, pursuant to Law No. 147 of December 27, 2000, and Law No. 12-01 of January 17, 2001;8 8 The controls identified in this subparagraph do not apply to remanufactured goods. (b) controls on the importation of used household appliances, pursuant to Law No. 147 of December 27, 2000;9 9 The controls identified in this subparagraph do not apply to remanufactured goods.
(c) controls on the importation of used clothes, pursuant to Law No. 458 of January 3, 1973; (d) controls on the importation of motor vehicles not suitable for operation, pursuant to Decree No. 671-02 of August 27, 2002;10 and 10 The controls identified in this subparagraph do not apply to remanufactured goods. (e) actions by the Dominican Republic authorized by the Dispute Settlement Body of the WTO. |
||||||||||
Section C: Measures of El Salvador |
|||||||||||
NO CORRESPONDING SECTION |
Articles 3.2 and 3.8 shall not apply
to: (a) controls on the importation of arms and ammunition, parts, and accessories included in HS Chapter 93, pursuant to Decree No. 655 of July 26, 1999 and its amendment pursuant to Decree No. 1035 of November 13, 2002; (b) controls on the importation of motor vehicles older than eight years, and on buses and trucks older than 15 years, pursuant to Article 1 of Decree No. 357 of April 6, 2001;11 11 The controls identified in this subparagraph do not apply to remanufactured goods. (c) controls on the importation of sacks and bags made out of jute and other similar textile fibers in subheading 6305.10 pursuant to Article 1 of Decree No. 1097 of July 10, 1953. El Salvador shall eliminate the controls identified in this subparagraph ten years after the date of entry into force of this Agreement; and (d) actions authorized by the Dispute Settlement Body of the WTO. |
||||||||||
Section D: Measures of Guatemala |
|||||||||||
NO CORRESPONDING
SECTION
|
Articles 3.2 and 3.8 shall not apply
to:
(a) controls on the exportation of timber in round logs or worked logs and sawn timber measuring more than 11centimeters in thickness, pursuant to the Ley de Bosques, Legislative Decree No. 101-96 of October 31, 1996; (b) controls on the exportation of coffee pursuant to the Ley del Café, Legislative Decree No. 19-69 of April 22, 1969; (c) controls on the importation of weapons pursuant to the Ley de Armas y Municiones, Legislative Decree No. 39-89 of June 29, 1989; and (d) actions authorized by the Dispute Settlement Body of the WTO. |
||||||||||
Section E: Measures of Honduras |
|||||||||||
NO CORRESPONDING SECTION |
Articles 3.2 and 3.8 shall not apply
to:
|
||||||||||
Section F: Measures of Nicaragua |
|||||||||||
NO CORRESPONDING SECTION |
1. Articles 3.2 and 3.8 shall not
apply to:
2. For purposes of paragraph 1, “basic foodstuffs” include the following:
3. Notwithstanding Articles 3.2 and 3.8, for the first ten years after the date of entry into force of this Agreement, Nicaragua may maintain its existing prohibitions or restrictions on the importation of the used goods set out below:
14 The controls identified in this subparagraph do not apply to remanufactured goods. 15 The controls identified in this subparagraph do not apply to remanufactured goods. (Note: Descriptions are provided for reference purposes only. To the extent of a conflict between the tariff classification and the description, the tariff classification governs.) |
||||||||||
Annex 3.3 Tariff Elimination |
Annex 3.3 Tariff Elimination |
||||||||||
1. Except as otherwise provided in a Party's Schedule attached to this Annex, the following staging categories apply to the elimination of customs duties by each Party pursuant to Article 3.3(2):
|
1. Except as otherwise provided in a Party’s Schedule to this Annex, the following staging categories apply to the elimination of customs duties by each Party pursuant to Article 3.3.2: (a) duties on goods provided for in the items in staging category A in a Party’s Schedule shall be eliminated entirely and such goods shall be duty-free:
|
||||||||||
(b) duties on goods provided for in the items in staging category B in a Party’s Schedule shall be removed in four equal annual stages beginning on the date this Agreement enters into force, and such goods shall be duty-free, effective January 1 of year four; | (b) duties on goods provided for in the items in staging category B in a Party’s Schedule shall be removed in five equal annual stages beginning on the date this Agreement enters into force, and such goods shall be duty-free, effective January 1 of year five; | ||||||||||
(c) duties on goods provided for in the items in staging category C in a Party’s Schedule shall be removed in eight equal annual stages beginning on the date this Agreement enters into force, and such goods shall be duty-free, effective January 1 of year eight; | (c) duties on goods provided for in the items in staging category C in a Party’s Schedule shall be removed in ten equal annual stages beginning on the date this Agreement enters into force, and such goods shall be duty-free, effective January 1 of year ten; | ||||||||||
(d) duties on goods provided for in the items in staging category D in a Party’s Schedule shall be removed in ten equal annual stages beginning on the date this Agreement enters into force, and such goods shall be duty-free, effective January 1 of year ten; | (d) duties on goods provided for in the items in staging category D in a Party’s Schedule shall be removed in 15 equal annual stages beginning on the date this Agreement enters into force, and such goods shall be duty-free, effective January 1 of year 15; | ||||||||||
(e) duties on goods provided for in the items in staging category E in a Party’s schedule shall be removed in twelve equal annual stages beginning on the date this Agreement enters into force, and such goods shall be duty-free, effective January 1 of year twelve; | (e) duties on goods provided for in the items in staging category E in a Party’s Schedule shall remain at base rates for years one through six. Duties on these goods shall be reduced by 8.25 percent of the base rate on January 1 of year seven, and by an additional 8.25 percent of the base rate each year thereafter through year ten. Beginning on January 1 of year 11, duties shall be reduced by an additional 13.4 percent of the base rate annually through year 15, and such goods shall be duty-free effective January 1 of year 15; | ||||||||||
(f) goods provided for in the items in staging category F in a Party’s schedule shall continue to receive duty-free treatment; | (f) duties on goods provided for in the items in staging category F in a Party’s Schedule shall remain at base rates for years one through ten. Beginning January 1 of year 11, duties shall be reduced in ten equal annual stages, and such goods shall be duty-free effective January 1 of year 20; | ||||||||||
(g) duties on goods provided for in the items in staging category G shall remain at base rates during years one through four. Duties on these goods shall be reduced by 8.3 percent of the base rate on January 1 of year five, and by an additional 8.3 percent of the base rate each year thereafter though year eight. Beginning January 1 of year nine, duties on these goods shall be reduced by an additional 16.7 percent of the base rate annually through year twelve and shall be duty-free effective January 1 of year twelve; and | (g) goods provided for in the items in staging category G in a Party’s Schedule shall continue to receive duty-free treatment; and | ||||||||||
(h) duties on goods provided for in the items in staging category H shall remain at base rates during years one and two. Beginning January 1 of year three, duties on these goods shall be removed in eight equal annual stages, and such goods shall be duty-free effective January 1 of year ten. | (h) goods provided for in the items in staging category H in a Party’s Schedule shall continue to receive most-favored-nation treatment. | ||||||||||
2. The base rate of customs duty and staging category for determining the interim rate of customs duty at each stage of reduction for an item are indicated for the item in each Party’s Schedule attached to this Annex. | 2. The base rate of customs duty and staging category for determining the interim rate of customs duty at each stage of reduction for an item are indicated for the item in each Party’s Schedule. | ||||||||||
3. For the purpose of the elimination of customs duties in accordance with Article 3.3, interim staged rates shall be rounded down, at least to the nearest tenth of a percentage point or, if the rate of duty is expressed in monetary units, at least to the nearest 0.001 of the official monetary unit of the Party. | 3. For the purpose of the elimination of customs duties in accordance with Article 3.3, interim staged rates shall be rounded down, at least to the nearest tenth of a percentage point or, if the rate of duty is expressed in monetary units, at least to the nearest 0.001 of the official monetary unit of the Party. | ||||||||||
NO CORRESPONDING PARAGRAPH |
4. If this
Agreement enters into force for a Central American Party or the
Dominican Republic as provided in Article 22.5.2 (Entry into Force),
the Party shall apply the rates of duty set out in its Schedule as
if the Agreement had entered into force for that Party on the date
the Agreement entered into force as provided in Article 22.5.1
(Entry into Force). 5. For purposes of this Annex and a Party’s schedule, year one means the year the Agreement enters into force as provided in Article 22.5.1 (Entry into Force). 6. Notwithstanding paragraph 5, for purposes of the tariff treatment of textile or apparel goods to which Article 3.20.1 applies, year one shall be the year beginning January 1, 2004. Any Party that provides written notice under Article 3.20.2 shall apply the rates of duty set out in its Schedule for textile or apparel goods as if the Agreement had entered into force for that Party on January 1, 2004. 7. For purposes of this Annex and a Party’s Schedule, beginning in year two, each annual stage of tariff reduction shall take effect on January 1 of the relevant year. |
||||||||||
Annex 3.3.4
Implementation of Modifications Approved by the Parties to Accelerate the Elimination of Customs Duties |
|||||||||||
NO CORRESPONDING ANNEX | In the case of Costa Rica, agreements of the Parties under Article 3.3.4 will be equivalent to the instrument referred to in Article 121.4, third paragraph (protocolo de menor rango) of the Constitución Política de la República de Costa Rica. | ||||||||||
Annex 3.3.6 16 16 For greater certainty, an importer may elect to make a claim for preferential tariff treatment either under this Annex or under a Party’s Schedule to Annex 3.3, provided that the good meets the applicable rules of origin. |
|||||||||||
NO CORRESPONDING ANNEX |
1. Except as otherwise provided in this Annex:
2. Notwithstanding paragraph 1:
3. Notwithstanding paragraph 1, for any good classified under heading 2710, except mineral solvents, 2712, 2713, except subheading 2713.20, or 2715 that meets the rules of origin for the good set out in Chapter Four (Rules of Origin and Origin Procedures):
4. Paragraph 1 shall not apply to any good listed in Appendix 3.3.6.4 that meets the rules of origin for the good set out in Chapter Four (Rules of Origin and Origin Procedures).17 17 Notwithstanding paragraph 4, a good classified under heading 2208, except tariff item 2208.90.10, that meets the rules of origin for the good set out in Chapter Four (Rules of Origin and Origin Procedures) that is imported directly from the territory of El Salvador into the territory of the Dominican Republic or from the territory of the Dominican Republic into the territory of El Salvador shall not be subject to duties.
5. An importing Party may deny the preferential tariff treatment provided for in paragraphs 1 through 3 of this Annex if the good is produced in a duty-free zone or under another special tax or customs regime in the territory of a Central American Party or the Dominican Republic, as the case may be, provided however that the importing Party shall provide to any such good tariff treatment that is no less favorable than the tariff treatment it applies to the good when produced in its own duty-free zones or other special tax or customs regimes and entered into its territory.
6. The Central American Parties and the Dominican Republic may agree to modify the rules of origin set out in Appendix 3.3.6 (Special Rules of Origin), provided that they notify the United States and provide an opportunity for consultations regarding the proposed modifications at least 60 days before concluding any such agreement.
7. For purposes of this Annex:
|
||||||||||
NO CORRESPONDING APPENDIX |
Appendix 3.3.6 |
||||||||||
Appendix 3.3.6.4 Exceptions from Preferential Tariff Treatment |
|||||||||||
HS No. Description 0207.11 Chicken 0207.12 Chicken 0207.13 Chicken 0207.14 Chicken 0402.10 Milk powder 0402.21 Milk powder 0402.29 Milk powder 0703.10 Onions 0703.20 Garlic 0713.31 Beans 0713.32 Beans 0713.33 Beans 0901.11 Coffee 0901.12 Coffee 0901.21 Coffee 0901.22 Coffee 1006.10 Rice 1006.20 Rice 1006.30 Rice 1006.40 Rice 1101.00 Wheat flour 1701.11 Sugar 1701.91 Sugar 1701.99 Sugar 2203 Beer 2207 Alcohol 2208 Alcohol 2401.20 Tobacco 2402.20 Tobacco (only goods containing rubio) 2403.10 Tobacco Note: The descriptions provided in this Appendix are for reference purposes only. |
|||||||||||
Annex 3.14: Luxury Tax |
NO CORRESPONDING ANNEX | ||||||||||
1. Chile shall eliminate the Luxury Tax established in Article 46 of
Decreto Ley 825 of 1974 according to the following schedule:
2. Upon the date of entry into force of this Agreement, Chile shall increase the threshold at which the tax is applied to US$2,500 above the level provided for that year under Article 46 of Decreto Ley 825, and increase the threshold each subsequent year by an additional US$2,500 until the tax is eliminated. |
|||||||||||
NO CORRESPONDING ANNEX |
Annex 3.11: Export Taxes |
||||||||||
Costa Rica may maintain its existing
taxes on the export of the following goods:
|
|||||||||||
NO CORRESPONDING ANNEX |
Annex
3.22 |
||||||||||
1. For Costa Rica: Category 340/640: Cotton and man-made fiber shirts, for men and boys Category 342/642: Cotton and man-made fiber skirts Category 347/348: Cotton trousers, breeches, and shorts Category 443: Wool suits, for men and boys Category 447: Wool trousers, for men and boys 2.
For the Dominican Republic:
3. For El Salvador:
4. For Guatemala: |
|||||||||||
NO CORRESPONDING ANNEX |
Annex 3.25: |
||||||||||
Note: This list shall remain in effect until the United States publishes a replacement list that makes changes to the list pursuant to Article 3.25.4 or 3.25.5. Any replacement list shall supersede this list and any prior replacement list, and the United States shall publish the replacement list at the same time that the United States makes a determination pursuant to Article 3.25.4, and six months after the United States makes a determination pursuant to Article 3.25.5. The United States shall transmit a copy of any replacement list to the other Parties at the time it publishes the list. | |||||||||||
Annex 3.27
Preferential Tariff Treatment for Wool Apparel Goods Assembled in Costa Rica |
|||||||||||
1. Subject to paragraph 4, the
United States shall apply a rate of duty that is 50 percent of the
MFN rate of duty to men’s, boys’, women’s, and girls’ tailored wool
apparel goods in textile categories 433, 435 (suit-type jackets
only), 442, 443, 444, 447, and 448, all within headings 6203 and
6204, if they meet all applicable conditions for preferential tariff
treatment,23 and are both cut and sewn or otherwise
assembled in the territory of Costa Rica, regardless of the origin
of the fabric used to make the goods.
23 For greater certainty, the applicable conditions for preferential tariff treatment include Chapter Rules 1, 3, and 4 for Chapter 62 of the specific rules of origin in Annex 4.1 (Specific Rules of Origin). 2. For purposes of determining the quantity of square meter equivalents (SME) charged against the limits set out in paragraph 4, the conversion factors listed in Correlation: U.S. Textile and Apparel Category System with the Harmonized Tariff Schedule of the United States of America 2003, U.S. Department of Commerce, Office of Textiles and Apparel, or successor publication, and reproduced in paragraph 3, shall apply. 3. The treatment described in paragraph 1 shall apply to the following goods:24
Preferential Tariff
Treatment 24 For purposes of this paragraph:
DZ
means dozen; 25 For category 435, preferential tariff treatment is available only for suit-type jackets classified in subheading 6204.31 and tariff items 6204.33.aa, 6204.39.aa, and 6204.39.dd 4. The treatment described in paragraph 1 shall be limited to goods imported into the territory of the United States up to a quantity of 500,000 SME in each of the first two years after the date of entry into force of this Agreement. 5. Costa Rica and the United States shall consult 18 months after the date of entry into force of this Agreement regarding the operation of this Annex and the availability of wool fabric in the region. |
|||||||||||
Annex 3.28 |
|||||||||||
1. Subject to paragraph 4, the
United States shall apply the applicable rate of duty set out in its
Schedule to Annex 3.3 to the cotton and man-made fiber apparel goods
listed in paragraph 3 and provided for in chapters 61 and 62 of the
Harmonized System, if they meet the applicable conditions for
preferential tariff treatment other than the condition that they be
originating goods, and are both cut or knit to shape, and sewn or
otherwise assembled, in the territory of Nicaragua.
2. For purposes of determining the quantity of square meter equivalents (SME) that is charged against the annual quantity, the conversion factors listed in Correlation: U.S. Textile and Apparel Category System with the Harmonized Tariff Schedule of the United States of America 2003, U.S. Department of Commerce, Office of Textiles and Apparel, or successor publication, and reproduced in paragraph 3, shall apply. 3. The treatment described in paragraph 1 shall apply to the following goods:26
Preferential Tariff Treatment 26 For purposes of this paragraph:
DZ
means dozen; 4. The treatment described in paragraph 1 shall be limited as follows:
Beginning the tenth year after the
date of entry into force of this Agreement, this Annex shall |
|||||||||||
NO CORRESPONDING ANNEX |
Annex 3.29 |
||||||||||
Note: Whether or not a textile or apparel good is covered by this Section shall be determined in accordance with the Harmonized System. The descriptions provided in this Annex are for reference purposes only. |