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FREE TRADE AGREEMENT BETWEEN THE EURASIAN ECONOMIC UNION AND ITS MEMBER STATES, OF THE ONE PART, AND THE REPUBLIC OF INDONESIA, OF THE OTHER PART PREAMBLE The Eurasian Economic Union (hereinafter referred to as “the EAEU”) and the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, and the Russian Federation (hereinafter referred to as “the EAEU Member States”), of the one part, and the Republic of Indonesia (hereinafter referred to as “Indonesia”), of the other part, RECOGNISING the importance of strengthening and enhancing the longstanding and strong friendship and cooperation between the Parties; DESIRING to create favourable environments and conditions for the growth of mutually beneficial trade relations and for the promotion of economic cooperation between the Parties in the areas of mutual interest; DESIRING to reduce or eliminate barriers to trade between the Parties in order to ensure lowered business costs and enhanced economic efficiency; RECOGNISING the need to uphold the principles and practices which promote free and unhindered trade in a predictable, transparent and non-discriminatory manner; ACKNOWLEDGING the importance of trade facilitation in promoting efficient and transparent procedures to reduce costs and ensure predictability of the market; and EMPHASISING the need for further promotion of mutual cooperation between the Parties on the basis of mutual trust, transparency, and principles of fair and mutually beneficial trade facilitation; HAVE AGREED as follows: 2 CHAPTER 1 INITIAL PROVISIONS AND GENERAL DEFINITIONS Article 1.1 Establishment of a Free Trade Area The Parties hereby establish a free trade area consistent with Article XXIV of the GATT 1994. Article 1.2 Objective The objective of this Agreement is to liberalise and facilitate trade between the Parties in accordance with the provisions of this Agreement. Article 1.3 Definitions of General Application For the purposes of this Agreement, unless otherwise specified in this Agreement: “Anti-Dumping Agreement” means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 contained in Annex 1A to the WTO Agreement; “customs duty” means any duty or1 charge of any kind imposed on or in connection with the importation of a good, but does not include any: (a) charge equivalent to an internal tax imposed consistently with Article III of the GATT 1994; (b) fee or other charge in connection with the importation commensurate with the costs of services rendered; or (c) duty imposed consistently with Chapter 5 (Trade Remedies); “day” means a calendar day including weekends and holidays; 1 For greater certainty, the term “or” is used in an inclusive nature (that is to say, “either [A] or [B], or both”) throughout this Agreement. Where the term “or” is intended to be used in an exclusive nature (that is to say, “either [A] or [B], but not both”), then this is articulated using the formulation, “either [A] or [B]”.
3 “Eurasian Economic Commission” means the permanent regulatory body of the EAEU in accordance with the Treaty on the Eurasian Economic Union of 29 May 2014 (hereinafter referred to as “the Treaty on the EAEU”); “GATT 1994” means the General Agreement on Tariffs and Trade 1994, including its notes and supplementary provisions contained in Annex 1A to the WTO Agreement; “good(s)” means any merchandise, product, article or material; “Harmonized System” or “HS” means the Harmonized Commodity Description and Coding System established by the International Convention on the Harmonized Commodity Description and Coding System, done on 14 June 1983 as adopted and implemented by the Parties in their respective laws and regulations; “Import Licensing Agreement” means the Agreement on Import Licensing Procedures contained in Annex 1A to the WTO Agreement; “Joint Committee” means the Joint Committee established in accordance with Article 14.1 (Establishment of the Joint Committee); “measure” means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action or any other form; “originating goods” means goods that fulfil the origin criteria of Chapter 3 (Rules of Origin); “Parties” means the Member States of the Eurasian Economic Union and the Eurasian Economic Union acting jointly or individually within their respective areas of competence as derived from the Treaty on the EAEU, of the one part, and Indonesia, of the other part; “person” means a natural person or a juridical person; “preferential tariff treatment” means tariff concessions granted to originating goods pursuant to the Schedules of Tariffs Commitments set out in Annex 1 (Schedules of Tariff Commitments); “Safeguards Agreement” means the Agreement on Safeguards contained in Annex 1A of the WTO Agreement; “SCM Agreement” means the Agreement on Subsidies and Countervailing Measures contained in Annex 1A to the WTO Agreement; 4 “SPS Agreement” means the Agreement on the Application of Sanitary and Phytosanitary Measures contained in Annex 1A to the WTO Agreement; “TBT Agreement” means the Agreement on Technical Barriers to Trade contained in Annex 1A to the WTO Agreement; “TRIPS Agreement” means the Agreement on Trade-Related Aspects of Intellectual Property Rights contained in Annex 1C to the WTO Agreement; “WTO Agreement” means the Marrakesh Agreement Establishing the World Trade Organization done at Marrakesh on 15 April 1994; and “WTO” means the World Trade Organization. 5 CHAPTER 2 TRADE IN GOODS Article 2.1 Scope Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties. Article 2.2 Most-Favoured-Nation Treatment 1. Article I of the GATT 1994 as well as any exception, exemption and waivers to the obligation to grant treatment set out in Article I of the GATT 1994 applicable under the WTO Agreement are incorporated into and form part of this Agreement. 2. The provisions of paragraph 1 of this Article shall not apply to preferences: (a) to adjacent countries for the purposes of facilitating frontier traffic; (b) to the participants of a customs union, free trade area or regional economic organisation, or any other regional trade agreements as defined in Article XXIV of GATT 1994; or (c) granted by a Party to developing and least developed countries in accordance with general scheme of tariff preferences.
Article 2.3 National Treatment The Parties shall accord national treatment to the goods of the other Party in accordance with Article III of the GATT 1994, including its interpretative notes. To this end, Article III of the GATT 1994 and its interpretative notes, as well as any exceptions, exemptions and waivers to grant such treatment in accordance with Article III of the GATT 1994, are incorporated into and form part of this Agreement. Article 2.4 Classification of Goods 1. The classification of goods in trade between the Parties shall be governed by each Party’s respective tariff nomenclature in conformity with the HS and its amendments. 2. Each Party shall ensure that any change to its tariff nomenclature shall be carried out without impairing tariff concessions undertaken in accordance with 6 Annex 1 (Schedules of Tariff Commitments). Such change to the Foreign Economic Activity Commodity Nomenclature of the EAEU and the Indonesian Trade Classification shall be carried out by the Eurasian Economic Commission and Indonesia, respectively. Article 2.5 Reduction and Elimination of Customs Duties 1. Except as otherwise provided in this Agreement, each Party shall reduce or eliminate customs duties on originating goods of the other Party in accordance with its Schedule of Tariff Commitments in Annex 1 (Schedules of Tariff Commitments). 2. Except as otherwise provided in this Agreement, a Party shall not increase any existing customs duty or adopt any new customs duty on an originating good exceeding the level specified in its Schedule of Tariff Commitments in Annex 1 (Schedules of Tariff Commitments). 3. If the most-favoured-nation (hereinafter referred to as “MFN” in this Chapter) rate of customs duty applied by a Party on a particular good is lower than the rate of customs duty provided for in its Schedule of Tariff Commitments in Annex 1 (Schedules of Tariff Commitments), that Party shall: (a) apply the lower rate to the originating good of the other Party; and (b) publish changes to the MFN rate on the Internet. Article 2.6 Acceleration or Improvement of Tariff Commitments 1. Upon request of a Party, the other Party shall consult with the requesting Party to consider accelerating, improving or broadening the scope of the elimination of customs duties as set out in their Schedules of Tariff Commitments in Annex 1 (Schedules of Tariff Commitments). 2. Further arrangements between the Parties to accelerate or broaden the scope of the elimination of a customs duty on a good (or to include a good in Annex 1 (Schedules of Tariff Commitments) shall supersede any duty rate or staging category determined pursuant to their respective Schedules upon its incorporation into this Agreement in accordance with Article 15.1 (Amendments). 3. Nothing in this Agreement shall prohibit a Party from unilaterally accelerating or broadening the scope of the elimination of customs duties set out in its Schedule of Tariff Commitments in Annex 1 (Schedules of Tariff Commitments) on originating goods. Any such unilateral acceleration or broadening of the scope of the elimination of customs duties will not permanently supersede any duty rate or staging category determined pursuant to their respective Schedule 7 nor serve to waive that Party’s right to raise the customs duty back to the level established in its Schedule of Tariff Commitments in Annex 1 (Schedules of Tariff Commitments) following a unilateral reduction. Article 2.7 Fees and Formalities Connected with Importation and Exportation 1.
Article VIII of the GATT 1994 as well as any exceptions, exemptions and waivers to the obligations set out in Article VIII of the GATT 1994 applicable under the WTO Agreement are incorporated into and form part of this Agreement. 2. Each Party shall promptly make information available on the Internet regarding the fees and charges it imposes in connection with importation or exportation. Article 2.8 Customs Valuation The customs value of goods traded between the Parties shall be determined in accordance with the customs laws and regulations of the importing Party based on the provisions of Article VII of the GATT 1994 and the Agreement on Implementation of Article VII of the General Agreement of Tariff and Trade 1994. Article 2.9 Import and Export Restrictions Except as otherwise provided in this Agreement, neither Party shall 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 its WTO rights and obligations, and to this end Article XI of the GATT 1994 and its interpretative notes are incorporated into and form part of this Agreement. Article 2.10 Import Licensing 1. Each Party shall ensure that its import licensing procedures, as defined in Articles 1 through 3 of the Import Licensing Agreement, are implemented in a transparent and predictable manner, and applied in accordance with the Import Licensing Agreement. To this end, Articles 1 through 3 of the Import Licensing Agreement are incorporated into and form part of this Agreement. 2. Upon request of a Party, the other Party shall to the extent practicable provide information concerning its implementation of import licensing procedures in a reasonable period of time. 8 3. Promptly after entry into force of this Agreement, each Party shall notify the other Party of its existing import licenses, if any. The notification shall include the information specified in paragraph 2 of Article 5 of the Import Licensing Agreement. 4. A Party shall be deemed to be in compliance with paragraph 3 of this Article with respect to an existing import licensing procedure if: (a) it has notified that procedure to the Committee on Import Licensing established in accordance with Article 4 of the Import Licensing Agreement together with the information specified in paragraph 2 of Article 5 of that Agreement; or (b) with respect to that procedure, it has provided to the Committee on Import Licensing, the information requested in the annual questionnaire on import licensing procedures described in paragraph 3 of Article 7 of the Import Licensing Agreement, in that Party’s most recent annual submission due before entry into force of this Agreement. Article 2.11 Countertrade 1. The Parties recognise the utilization of countertrade as an alternative mechanism in international trade that may facilitate trade flow and thus promote economic developments. 2. The Parties endeavour to facilitate countertrade transactions between their private sectors. Nothing in this Article shall be construed to prevent a Party from authorising its relevant bodies to take a measure to goods in any manner consistent with its laws and regulations. 3. The Parties shall exchange and provide upon request, information relevant to the governance of counter trade including applicable laws and regulations. 4.
For greater certainty, nothing in this Article shall be construed to modify the rights and obligations of the Parties under international trade agreements to which the respective Party is a party. Article 2.12 Exchange of Data 1. The Parties recognise the value of preferential trade data to accurately analyse the implementation of this Agreement. The Parties shall cooperate with a view to conducting periodic exchanges of data relating to trade in goods between the Parties. 2. The Parties may engage in such periodic exchanges within the Sub-Committee on Trade in Goods pursuant to Article 14.3 (Establishment 9 of the Sub-Committees) for such purposes or any purposes as the Joint Committee may determine. 10 CHAPTER 3 RULES OF ORIGIN SECTION I. GENERAL PROVISIONS Article 3.1 Scope The Rules of Origin provided for in this Chapter shall be applied only for the purposes of granting preferential tariff treatment in accordance with this Agreement. Article 3.2 Definitions For the purposes of this Chapter: “aquaculture” means farming of aquatic organisms including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from feedstock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production such as regular stocking, feeding or protection from predators; “authorised body” means the competent entity (organisation) and/or governmental authority designated by a Party to issue a Certificate of Origin under this Agreement; “commercial documents” means the documents used in foreign trade and other activities as well as to confirm effecting transactions related to movement of goods across the customs border of a Party, such as invoices, specifications, shipping or packing lists and other documents; “consignment” means goods that are sent simultaneously covered by one or more transport documents to the consignee from the exporter; “exporter” means a person registered in the territory of a Party2 who exports goods from the exporting Party in accordance with the applicable laws and regulations of the exporting Party; “FOB value” means the free-on-board value of the goods, inclusive of the cost of transport to the port or site of final shipment abroad in accordance with the International Commercial Terms 2020; 2 Without prejudice to the provisions of Article 3.25 (Third Country Invoicing) 11 “importer” means a person who imports goods into the importing Party in accordance with the applicable laws and regulations of the importing Party; “goods” means any merchandise, products or articles being obtained or produced, even if they are intended for later use in another production operation as materials; “material” means any matter or substance including ingredient, raw material, component or part used or consumed in the production of goods or physically incorporated into goods or subjected to a process in the production of other goods; “non-originating goods” or “non-originating materials” means goods or materials that do not fulfil the origin criteria of this Chapter and/or goods or materials of undetermined origin; “originating goods” or “originating materials” means goods or materials that fulfil the origin criteria of this Chapter; “producer” means a person who carries out production in the territory of a Party; “production” means methods of obtaining goods including growing, mining, harvesting, raising, breeding, extracting, gathering, capturing, fishing, hunting, manufacturing, processing or assembling such goods; “Proof of Origin” means Certificate of Origin or Declaration of
Origin provided for in this Chapter; and “verification authority” means the competent governmental authority designated by a Party to conduct verification procedures. Article 3.3 Origin Criteria For the purposes of this Chapter, goods shall be considered as originating in a Party if they are: (a) wholly obtained or produced entirely in the territory of that Party as set out and defined in Article 3.4 (Wholly Obtained or Produced Goods); (b) produced in the Party exclusively from materials originating in one or more Parties; or 12 (c) produced in the Party using non-originating materials provided that the goods have a qualifying value content (hereinafter referred to as “QVC”) of not less than 40 (forty) per cent of the FOB value, or the goods have undergone at least a change in tariff heading (CTH) level of the Harmonized System, except for the cases that specific origin criterion for such goods set out in Annex 2 (Product Specific Rules). Article 3.4 Wholly Obtained or Produced Goods For the purposes of Article 3.3 (Origin Criteria), the following goods shall be considered as wholly obtained or produced entirely in the territory of a Party: (a) plants and plant goods, including fruit, berries, flowers, vegetables, trees, seaweed, fungi and live plants, grown, harvested or gathered there; (b) live animals born and raised there; (c) goods obtained from live animals there; (d) goods from slaughtered animals born and raised there; (e) goods obtained from gathering, hunting, capturing, fishing, growing, raising and aquaculture there; (f) minerals and other naturally occurring substances extracted or taken from the air, soil, waters or seabed and subsoil there; (g) goods of sea fishing and other marine goods taken from the sea outside its territorial sea by a vessel registered or recorded in a Party and flying its flag; (h) goods manufactured exclusively from goods referred to in subparagraph “g” of this Article, on board a factory ship registered or recorded in a Party and flying its flag; (i) goods extracted from marine soil or subsoil outside its territorial sea provided that Party has sole rights to work that soil or subsoil; (j) waste and scrap resulting from production and consumption conducted there; (k) used goods collected there provided that such goods are fit only for the recovery of raw materials; 13 (l) goods produced in outer space on board a spacecraft registered in a Party; and (m) goods produced or obtained in the territory of a Party solely from goods referred to in subparagraphs “a” through “l” of this Article. Article 3.5 Calculation of Qualifying Value Content For the purposes of Article 3.3 (Origin Criteria), the formula for calculating QVC is as follows: QVC = FOB − VNM FOB ∗ 100 % where: QVC - is the qualifying value content of goods expressed as a percentage; FOB - is the FOB value of the final goods as defined in paragraph 7 of Article 3.2 (Definitions); VNM - is the customs value of the non-originating materials at the time of importation or, if the customs value is not known or cannot be ascertained, the earliest ascertained price paid or payable in the Party where the production takes place for all non-originating materials, parts or produce that are acquired by the producer in the production of the goods. When the producer of goods acquires non-originating materials within that Party the value of such materials shall not include freight, insurance, packing costs and any other costs incurred in transporting the material from the supplier’s warehouse to the location of production.
Article 3.6 Insufficient Working or Processing 1. The following operations undertaken exclusively by themselves or in combination with each other are considered to be insufficient to meet the requirements of Article 3.3 (Origin Criteria): (a) preserving operations to ensure that a product retains its condition during transportation and storage; (b) freezing or thawing; (c) packaging and re-packaging; 14 (d) washing, cleaning, removing dust, oxide, oil, paint or other coverings; (e) ironing or pressing of textiles; (f) painting, colouring, polishing, varnishing, oiling; (g) husking, partial or total bleaching, polishing and glazing of cereals and rice; (h) operations to colour sugar or form sugar lumps; (i) peeling and removal of stones and shells from fruits, nuts and vegetables; (j) simple sharpening, grinding; (k) cutting; (l) sifting, screening, sorting, classifying; (m) placing in bottles, cans, flasks, bags, cases, boxes, fixing on surface and all other packaging operations; (n) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging; (o) mixing of products (components) which does not lead to a sufficient difference of product from the original components; (p) simple assembly of a product or disassembly of products into parts; (q) slaughter of animals, sorting of meat; and (r) use of goods for their intended purpose. 2. For the purposes of paragraph 1 of this Article, “simple” describes activities which do not require special skills or machines, apparatus or equipment especially designed for carrying out such activities. Article 3.7 Accumulation of Origin 1. Without prejudice to Article 3.3 (Origin Criteria), the goods originating in a Party, which are used as materials in the production in another Party, 15 shall be considered as originating in the latter Party where working or processing of the finished goods has taken place, provided that their working or processing goes beyond the operations referred to in Article 3.6 (Insufficient Working or Processing). 2. For the purposes of this Article, the origin of the goods used for subsequent working or processing shall be confirmed by documentary evidence. Article 3.8 De Minimis 1. Goods that do not undergo the applicable change in tariff classification are nonetheless considered originating, if: (a) for goods, other than that provided for in Chapters 50 to 63 of the Harmonized System, the value of all non-originating materials used in the production of the goods that did not undergo the required change in tariff classification does not exceed 10 (ten) per cent of the FOB value of the goods; or (b) for goods provided for in Chapters 50 to 63 of the Harmonized System, the weight or value of all non-originating materials used in the production of the goods that did not undergo the required change in tariff classification does not exceed 10 (ten) per cent of the total weight or the FOB value of the goods; and the goods meet all other applicable criteria set forth in this Chapter for qualifying as originating goods. 2. The value of non-originating materials referred to in paragraph 1 of this Article shall, however, be included in the value of non-originating materials for any applicable QVC requirement for the goods. Article 3.9 Packing Materials for Transportation and Shipment 1. Packing materials and containers in which goods are packed exclusively for transportation and shipment shall not be taken into account for the purposes of determining whether the goods are originating. 2.
For the purposes of paragraph 1 of this Article, “packing materials and containers for transportation and shipment” means the goods used to protect goods during its transportation or shipment and does not include the packaging materials and containers in which the goods is packaged for retail sale. 16 Article 3.10 Packaging Materials for Retail Sale 1. Packaging materials and containers in which goods are packaged for retail sale, if classified with the goods, shall be disregarded in determining whether all the non-originating materials used in the production of those goods have undergone the applicable change in tariff classification or whether the goods are wholly obtained. 2. Notwithstanding paragraph 1 of this Article, in determining whether the goods fulfil the QVC requirement, the value of the packaging used for retail sale shall be taken into account as originating or non-originating materials, as the case may be, in calculating the QVC requirement of the goods. Article 3.11 Accessories, Spare Parts, Tools and Instructional or Other Information Materials 1. Accessories, spare parts, tools and instructional or other information materials, referred to in paragraph 2 of this Article, shall be disregarded in determining whether all the non-originating materials used in the production of those goods have undergone the applicable change in tariff classification or whether the goods are wholly obtained. 2. For the purposes of this Article, accessories, spare parts, tools, and instructional or other information materials are covered when: (a) the accessories, spare parts, tools and instructional or other information materials are classified and delivered with but not invoiced separately from such goods; and (b) the types, quantities and value of the accessories, spare parts, tools and instructional or other information materials presented with the goods are customary for such goods. 3. Notwithstanding paragraph 1 of this Article, in determining whether the goods fulfil the QVC requirement, the value of accessories, spare parts, tools and instructional or other information materials shall be taken into account as originating materials or non-originating materials, as the case may be, in calculating the QVC requirement of the goods. Article 3.12 Sets Sets, as defined in Rule 3 of the General Rules for the Interpretation of the Harmonized System, shall be regarded as originating when all component 17 goods are originating. Nevertheless, when a set is composed of originating and non-originating goods, the set as a whole shall be regarded as originating, provided that the value of the non-originating goods does not exceed 15 (fifteen) per cent of the FOB value of the set. Article 3.13 Intermediate Goods 1. When originating goods are used in the subsequent production of other goods within a Party, no account shall be taken of the non-originating materials contained in the originating goods for purposes of determining the origin of the subsequently produced goods. 2. When non-originating goods are used in the subsequent production of other goods within a Party, an account shall be taken of the originating materials contained in these non-originating goods for purpose of calculating of the QVC requirement of the subsequently produced goods.
Article 3.14 Indirect Materials In order to determine the origin of goods, the origin of the following indirect materials which might be used in the production of such goods and not be incorporated into such goods shall not be taken into account: (a) fuel and energy; (b) tools, dies and moulds; (c) spare parts and materials used in the maintenance of equipment and buildings; (d) lubricants, greases, compounding materials and other materials used in the production or used to operate equipment and buildings; (e) gloves, glasses, footwear, clothing, safety equipment; (f) equipment, devices used for testing or inspecting the goods; (g) catalyst and solvent; and (h) any other goods that are not incorporated into such goods but the use of which in the production of such goods can be demonstrated to be a part of that production. 18 Article 3.15 Direct Consignment 1. Preferential tariff treatment shall be granted to originating goods, which are transported directly between the Parties or through the territories of non-Parties to this Agreement, provided that during such transportation: (a) the goods have not undergone any operation there other than unloading, reloading, storing or any necessary operation designed to preserve their condition; and (b) the goods have not entered into trade or consumption there. 2. In the case where originating goods are imported through the territories of non-Parties to this Agreement one of the following documentary evidence shall be submitted to the customs authorities of the importing Party: (a) the transport documents covering the passage from the territory of one Party to the territory of the other Party and containing description of the goods and, where applicable and consistent with transportation conditions, the names of the ships or other means of transport used and the containers’ numbers; or (b) the documents issued by the customs authorities of the non-Parties to this Agreement where the goods were in transit or other commercial documents, including documents connected with their temporary storage, that contain description of the goods and confirm that the goods have not been altered or processed within its territory as provided for in subparagraph “a” of paragraph 1 of this Article. 3. In addition to the documents referred to in paragraph 2 of this Article any other supporting documents proving the direct consignment may be submitted. 4. If a declarant fails to provide the customs authorities of the importing Party with documentary evidence of direct consignment, preferential tariff treatment shall not be granted. Article 3.16 Non-Alteration Goods originating in a Party which do not undergo any working or processing in the other Party shall retain their origin when subsequently exported into one of the Parties, provided that: (a) the goods are the same as the previously exported from the Party where the origin criteria had been fulfilled; 19 (b) they have not undergone any operations other than preservation and packaging operations as well as operations to prepare goods for sale and transportation; and (c) the origin of such goods is confirmed by Certificate of Origin, provided for in paragraph 4 of Article 3.20 (Specific Cases of Issuance of Certificate of Origin). SECTION II. PROOF OF ORIGIN Article 3.17 General Requirements 1.
Goods originating in a Party shall on importation into any Party benefit from the preferential tariff treatment upon submission of one of the following Proofs of Origin: (a) a Certificate of Origin (Form EAI) issued in accordance with Article 3.19 (Certificate of Origin); or (b) a Declaration of Origin made out in accordance with Article 3.21 (Declaration of Origin). 2. Notwithstanding paragraph 1 of this Article, in the cases specified in Article 3.18 (Exemptions from Proof of Origin) originating goods shall benefit from preferential tariff treatment without it being necessary to submit any of the documents referred to in this Article. Article 3.18 Exemptions from Proof of Origin The Proof of Origin is not required in order to obtain preferential tariff treatment for importation of originating goods where the customs value does not exceed the amount of 200 (two hundred) US dollars or the equivalent amount in the importing Party’s currency, provided that the importation does not form part of one or more consignments that may reasonably be considered to have been undertaken or arranged for the purposes of avoiding the submission of the Proof of Origin. Article 3.19 Certificate of Origin 1. Certificate of Origin is a document confirming the origin of goods issued by an authorised body of a Party, upon an application having been made 20 by the producer, exporter or its authorised representative. The application shall be made in writing or by electronic means, if applicable in accordance with the laws and regulations of the exporting Party. 2. The Certificate of Origin shall be issued and duly completed in the English language in accordance with the requirements set out in Annex 3 (Certificate of Origin). The Certificate of Origin may be issued in original paper format or in electronic format without being made on paper and shall bear unique reference number. 3. The Certificate of Origin and its additional sheets must be on ISO A4 paper, contain security features and be in conformity with the specimen shown in Annex 3 (Certificate of Origin). 4. The Certificate of Origin shall be issued by the authorised body prior to, at the time of exportation or after the time of exportation whenever the goods to be exported can be considered originating in a Party within the meaning of this Chapter. 5. The authorised body of the exporting Party shall ensure that Certificates of Origin are issued in conformity with the format and duly completed in accordance with the requirements set out in Annex 3 (Certificate of Origin). 6. The Certificate of Origin shall cover the goods under one consignment and shall be valid for a period of 12 (twelve) months from the date of its issuance by the authorised body. The actual weight of delivered goods shall not exceed 5 (five) per cent of the weight specified in the Certificate of Origin. 7. In order to confirm the origin of goods in accordance with subparagraph “c” of paragraph 2 of Article 3.26 (Granting Preferential Tariff Treatment), an original Certificate of Origin, its copy or Certificate of Origin issued in electronic format without being made on paper shall be submitted to the customs authority of the importing Party for the granting preferential tariff treatment. The Parties shall ensure that submitted Certificates of Origin may be verified through the web-databases referred to in Article 3.31 (Use of Web-Databases). Article 3.20 Specific Cases of Issuance of Certificate of Origin 1. Where a Certificate of Origin has not been issued prior to or at the time of exportation, it may be issued retroactively.
In this instance, the Certificate of Origin shall bear the words “ISSUED RETROACTIVELY” or “ISSUED RETROSPECTIVELY”. 2. In the event of theft, loss or destruction of the original Certificate of Origin issued in paper format, the producer, exporter or its authorised representative may apply to the authorised body for its certified duplicate. A certified duplicate shall bear the words “DUPLICATE OF THE CERTIFICATE OF ORIGIN NUMBER___DATE___”. The certified duplicate of a Certificate of Origin shall be valid no longer than 12 (twelve) months from the date of issuance of the original Certificate of Origin. 21 3. Due to accidental errors or omissions made in the Certificate of Origin, the authorised body shall issue the Certificate of Origin in substitution for the previously issued Certificate of Origin which shall be annulled. In this instance, the Certificate of Origin shall bear the words: “ISSUED IN SUBSTITUTION FOR THE CERTIFICATE OF ORIGIN NUMBER___DATE___”. Such Certificate of Origin shall be valid for a period of 12 (twelve) months from the date of issuance of the previously issued Certificate of Origin. 4. In the case of transportation of originating goods between the Parties which have not undergone any working or processing in the other Parties, the authorised body of the latter Party may issue a replacement (back-to-back) certificate instead of Certificate(s) of Origin. Replacement (back-to-back) Certificate of Origin shall be issued on the basis of the Certificate(s) of Origin issued by the authorised body of the former Party and shall bear the words “ISSUED ON THE BASIS OF CERTIFICATE(S) OF ORIGIN NUMBER(S)___DATE(S)___”. Such Certificate of Origin shall be valid for a period of 12 (twelve) months from the date of its issuance. However, such replacement (back-to-back) Certificate of Origin shall not be issued after the period of more than 3 (three) years from the date of issuance of Certificate of Origin issued in the Party where the goods originate. The authorised body of the latter Party shall ensure that the total quantity of goods re-exported under the partial shipment covered by the replacement (back-to-back) Certificate of Origin does not exceed the total quantity of goods specified of the Certificate(s) of Origin issued by the authorised body of the former Party. Article 3.21 Declaration of Origin 1. The Declaration of Origin as referred to in subparagraph “b” of paragraph 1 of Article 3.17 (General Requirements) can be made out prior to, at the time of exportation or after the time of exportation of goods by: (a) any producer or exporter of a Party3 for consignment the customs value of which does not exceed 5000 (five thousand) US dollars or the equivalent amount in the importing Party’s currency; or (b) an approved exporter within the meaning of Article 3.22 (Approved Exporter) for any consignment regardless of its value. 3 This provision applies by producers or exporters of the EAEU Member States. For Indonesian producers or exporters, the application of this provision shall be in accordance with its respective laws and regulations. 22 2. The Declaration of Origin is a statement on origin made by producer, exporter or approved exporter on any commercial documents related to the goods in accordance with the template in Annex 4 (Declaration of Origin). Declarations of Origin shall be made out by printing in the English language. 3. The Declaration of Origin shall cover the originating goods under one consignment and shall remain valid for a period of 12 (twelve) months from the date it was made.
The actual weight of delivered goods shall not exceed 5 (five) per cent of the weight specified in commercial document containing Declaration of Origin. 4. In order to confirm the origin of goods in accordance with subparagraph “c” of paragraph 2 of Article 3.26 (Granting Preferential Tariff Treatment), an original Declaration of Origin or its copy, if it is provided for in the laws and regulations of the importing Party, shall be submitted to the customs authority of the importing Party for the granting preferential tariff treatment. 5. The producer, exporter or approved exporter making out a Declaration of Origin shall be prepared to submit at any time, at the request of the verification authority of the exporting Party, all appropriate documents proving the origin of the goods concerned as well as the fulfilment of the other requirements of this Chapter. 6. Where the customs authorities of the importing Party have a reasonable doubt about the authenticity of a Declaration of Origin referred to in subparagraph “a” of paragraph 1 of this Article and/or the compliance of the goods with the origin criteria, they may request a Certificate of Origin to be presented. Article 3.22 Approved Exporter 1. The competent governmental authority of the exporting Party, subject to fulfillment of the requirement set forth in paragraph 7 of this Article and respective laws and regulations, may authorise any exporter that meets certain requirements (hereinafter referred to as “approved exporter”) to make out Declarations of Origin without signing them irrespective of the value of the goods concerned. 2. An exporter who applies for such authorisation must offer, to the satisfaction of the competent governmental authority, all guarantees necessary to verify the origin of the goods as well as the fulfilment of the other requirements of this Chapter. 3. The competent governmental authority may grant the status of approved exporter subject to conditions, which they consider appropriate in accordance with respective laws and regulations of the exporting Party, based, inter alia, on the following general principles: (a) knowledge of Rules of Origin provided for in this Chapter; (b) compliance with the customs laws and regulations; and 23 (c) performing export deliveries. 4. When granting an authorisation, the competent governmental authority of the exporting Party shall provide the approved exporter an authorisation number. The authorisation number must be included in the Declaration of Origin, which shall be made out in accordance with the template provided for in Annex 4 (Declaration of Origin). 5. The competent governmental authority of the exporting Party shall, on a regular basis, verify the use of an authorisation. If the approved exporter no longer meets the requirements or otherwise makes improper use of the authorisation, the competent governmental authority may, subject to laws and regulations, withdraw it. Information on the validity of such authorisations shall be made available to the other Parties and shall be updated on a regular basis. 6. If the information on particular approved exporter is not available to the importing Party, the imported goods can be released in accordance with the requirements of such Party’s respective laws and regulations. 7.
The provisions of this Article shall become applicable for the purposes of this Agreement 60 (sixty) days from the date of receipt of the last written notification certifying that the EAEU Member States and Indonesia have completed their respective internal legal procedures necessary for approved exporter system implementation. Exchange of such notifications shall be made between the Eurasian Economic Commission and the Ministry of Trade of the Republic of Indonesia. Article 3.23 Minor Discrepancies 1. Where the origin of the goods is not in doubt, the discovery of minor discrepancies between the information in the Proof of Origin and in the documents submitted to the customs authorities of the importing Party shall not, of themselves, invalidate the Proof of Origin, if such information in fact corresponds to the goods submitted. 2. For multiple goods declared under the same Proof of Origin, a problem encountered with one of the goods listed shall not affect or delay the granting of preferential tariff treatment for the remaining goods covered by the Proof of Origin. Article 3.24 Record-keeping Requirements 1. The producer or exporter applying for the issuance of a Certificate of Origin shall keep all records and copies of documents submitted to the authorised body for the period of 3 (three) years from the date of issuance of the Certificate of Origin or longer period, if it is provided for in the laws and regulations of the respective Party. 24 2. An importer who has been granted preferential tariff treatment must keep the copy of Proof of Origin for the period of 3 (three) years from the date when the preferential tariff treatment was granted or longer period, if it is provided for in the laws and regulations of the respective Party. 3. The application for Certificate of Origin and all documents related to such application shall be retained by the authorised body for the period of no less than 3 (three) years from the date of issuance of the Certificate of Origin. 4. A producer, exporter or approved exporter making out a Declaration of Origin shall keep all records and copies of documents proving the origin of the goods concerned for a period of no less than 3 (three) years from the date of issuance of the Declaration of Origin. SECTION III. PREFERENTIAL TARIFF TREATMENT Article 3.25 Third Country Invoicing 1. The importing Party shall grant preferential tariff treatment for originating goods in cases where the invoice is issued by a person registered either in a Party or in a non-Party to this Agreement, provided that such goods meet the requirements of this Chapter. 2. In cases where invoice is issued by a person registered in a non-Party to this Agreement, the words “TCI” (Third Country Invoicing) and additional relevant information referred to in Annex 3 (Certificate of Origin) to be indicated in Certificate of Origin. 3. In cases where invoice is issued by a person registered in a non-Party to this Agreement, the Declaration of Origin may be made on a commercial document other than invoice. Article 3.26 Granting Preferential Tariff Treatment 1. Preferential tariff treatment under this Agreement shall be applied to originating goods that satisfy the requirements of this Chapter. 2.
Customs authorities of the importing Party shall grant preferential tariff treatment to originating goods provided that: (a) importing goods satisfy the origin criteria referred to in Article 3.3 (Origin Criteria); (b) direct consignment requirements referred to in Article 3.15 (Direct Consignment) have been fulfilled; and 25 (c) the origin of imported goods is confirmed by Proof of Origin in accordance with requirements provided for in this Chapter. 3. In order to obtain preferential tariff treatment, the importer shall claim for preferential tariff treatment at the time of importation of originating goods or at the later stage if it is provided for in the importing Party respective laws and regulations. 4. If appropriate Proof of Origin or documentary evidence of direct consignment has not been submitted at the time of importation, the importing Party shall impose the applied MFN customs duty or require payment of a deposit on the imported goods, where applicable. 5. Pursuant to paragraph 3 of this Article, the importer may submit documents referred to in paragraph 4 of this Article at the later stage and make a claim for preferential tariff treatment and refund of any excess customs duty or deposit paid subject to the respective laws and regulations of the importing Party and the requirements of paragraph 2 of this Article. 6. Notwithstanding paragraph 2 of this Article, where the customs authorities of the importing Party have a reasonable doubt as to the origin of the goods for which preferential tariff treatment is claimed and/or to the authenticity of the submitted Proof of Origin such customs authorities may suspend the application of preferential tariff treatment to such goods, while awaiting the results of verification procedures. However, the goods can be released in accordance with the requirements of such Party’s respective laws and regulations. Article 3.27 Denial of Preferential Tariff Treatment 1. Where the goods do not meet the requirements of this Chapter or where the importer or exporter fails to comply with the requirements of this Chapter, the customs authorities of the importing Party shall deny preferential tariff treatment and recover unpaid customs duties in accordance with its respective laws and regulations. 2. The customs authorities of the importing Party shall deny preferential tariff treatment in one of the following cases: (a) the goods do not satisfy the origin criteria referred to in Article 3.3 (Origin Criteria); (b) the direct consignment requirements provided for in Article 3.15 (Direct Consignment) have not been fulfilled; (c) the importer fails to submit the Proof of Origin to the customs authorities of the importing Party within the period specified in the laws and regulations of the importing Party; 26 (d) the Proof of Origin has not been issued and duly completed as specified in Annexes 3 (Certificate of Origin) and 4 (Declaration of Origin); (e) the goods specified in the Proof of Origin cannot be identified with the goods declared upon customs declaration.
However, lack of correspondence between the HS code detailed in the Proof of Origin and the actual classification by the customs authority of the importing Party, shall not in itself constitute a reason for denial of preferential tariff treatment; (f) the Certificate of Origin has not been submitted upon the request of the customs authority of the importing Party as provided for in paragraph 6 of Article 3.21 (Declaration of Origin); (g) the actual weight of declared importing goods exceeds the weight specified in the Proof of Origin by more than 5 (five) per cent; (h) information on the Certificate of Origin is not available in the web-database or the Electronic System for Origin Data Exchange (hereinafter referred to as “ESODE”), referred to in Articles 3.31 (Use of Web-Databases) and 3.32 (Development of Electronic System for Origin Data Exchange), on the date of registration of customs declaration; (i) information contained in the Certificate of Origin does not correspond to the information in the web-database, referred to in Article 3.31 (Use of Web-Databases), on the date of registration of customs declaration; (j) the verification procedures undertaken under Articles 3.33 (Verification of Origin) and 3.34 (Verification Visit) fail to determine the origin of the goods or indicate the inconsistency of the origin criteria; (k) the verification authority of the exporting Party has confirmed that the Certificate of Origin had not been issued (i.e. forged) or had been annulled (withdrawn); (l) the customs authority of the importing Party receives no reply within a maximum of 120 (one hundred and twenty) days after the date of a verification request made to the verification authority of the exporting Party, or if the response to the verification request does not contain sufficient information to conclude whether the goods originate in a Party; or (m) the customs authority of the importing Party within 60 (sixty) days from the date of dispatch of the request for verification visit, stipulated in paragraph 2 of Article 3.34 (Verification Visit), receives no written response from 27 the verification authority of the exporting Party, pursuant to paragraph 5 of Article 3.34 (Verification Visit), or receives a refusal to conduct such verification visit. SECTION IV. ADMINISTRATIVE COOPERATION Article 3.28 Authorised Body and Verification Authority Each Government of the Parties shall designate or maintain an authorised body and a verification authority. Article 3.29 Notifications 1. Prior to the entry into force of this Agreement, each Party shall provide the other Party, through the Eurasian Economic Commission and the Ministry of Trade of the Republic of Indonesia, respectively, with the following information: (a) names and addresses of each authorised body and verification authority of the Parties; (b) contact e-mail addresses of the customs authorities and verification authorities of the Parties for the facilitation of verification procedures; and (c) electronic addresses of the web-databases referred to in Article 3.31 (Use of Web-Databases) and information about requirements to access such web-databases (user names, passwords, if any). 2. The Eurasian Economic Commission and the Ministry of Trade of the Republic of Indonesia shall publish on the Internet the information on the names and addresses of the authorised body and verification authority of each Party. 3.
Any change to the information stipulated in this Article shall be notified by the Eurasian Economic Commission and the Ministry of Trade of the Republic of Indonesia in advance and in the same manner. Article 3.30 Administrative Cooperation Language Any notification or communication under this Chapter shall be conducted between the Parties through the relevant authorities in the English language. 28 Article 3.31 Use of Web-Databases 1. In order to simplify the procedures for obtaining the preferential tariff treatment, the Parties shall use secure web-database of the authorised bodies that contain information on issued Certificates of Origin and enable customs authorities of the importing Party to verify the authenticity of any issued Certificate of Origin (hereinafter referred to as “web-databases”). 2. The web-databases shall meet the following requirements: (a) completeness, relevance and reliability of the information contained; (b) data protection of the information contained from unauthorised access, destruction, modification or any other illegal actions; (c) proper around the clock functioning; (d) entering information identical to the data from Certificate of Origin (except for signatures and stamps) into the web-database no later than 1 (one) day after the date of its issuance; (e) storage of information on the issued Certificates of Origin within the period set out in paragraph 3 of Article 3.24 (Record-keeping Requirements); and (f) possibility of saving (printing) information contained in the web-database by the customs authorities of the importing Party. Article 3.32 Development of Electronic System for Origin Data Exchange 1. With the view to further developing paperless trade, the Parties shall endeavour to implement and support the ESODE, based on an electronic data exchange concept. 2. The ESODE shall enable the customs authorities of the importing Party to receive through the electronic data transmission the information from the Certificates of Origin issued by the authorised bodies of the exporting Party. 3. All the requirements and specifications for the application of the ESODE shall be set out in separate Protocol. 4. To confirm the origin of goods in accordance with subparagraph “c” of paragraph 2 of Article 3.26 (Granting Preferential Tariff Treatment), if the Parties implement the ESODE, the original Certificate of Origin, its copy or Certificate of Origin issued in electronic format without being made on paper shall not be required by the customs authority of the importing Parties. In such case, 29 the date and number of such Certificate of Origin shall be specified in customs declaration for the granting preferential tariff treatment. Article 3.33 Verification of Origin 1. Where the customs authorities of the importing Party have a reasonable doubt about the authenticity of Proof of Origin and/or the compliance of the goods, covered by the Proof of Origin, with the origin criteria, pursuant to Article 3.3 (Origin Criteria), or in the case of a random check, they may send a request to the verification authority of the exporting Party to confirm the authenticity of the Proof of Origin and/or the compliance of the goods with the origin criteria and/or to provide, if requested, documentary evidence from the producer and/or exporter of the goods (hereinafter referred to as “verification request”). 2.
In cases set out in subparagraphs “b” to “i” of paragraph 2 of Article 3.27 (Denial of Preferential Tariff Treatment), the customs authorities of the importing Party are not required to make a verification request for the purposes of making decisions on denial of preferential tariff treatment. 3. All verification requests shall be made by the official letters and accompanied by sufficient information to identify the goods concerned, a copy of the Proof of Origin verified and shall specify the circumstances and reasons for such request. 4. The recipient of the verification request shall respond to the requesting customs authority of the importing Party within 120 (one hundred and twenty) days after the date of such verification request. 5. The verification request and its accompanying documents, as well as the verification response to such request, shall be transmitted electronically between the customs authority of the importing Party and the verification authority of the exporting Party, via the contact email addresses referred to in paragraph 1 of Article 3.29 (Notifications). The hard copy of the verification request and response to such request shall also be sent by post. The requested and requesting authorities shall act promptly upon receiving the request or response by email without having to wait for the hard copy of such request or response. 6. In response to a verification request the verification authority of the exporting Party shall clearly indicate whether the Proof of Origin is authentic and/or whether the goods can be considered as originating, including by providing requested documentary evidence received from the producer and/or exporter of the goods. Before the response to the verification request is received, paragraph 6 of Article 3.26 (Granting Preferential Tariff Treatment) may be applied. The customs duties or deposit paid shall be refunded if the received results of the verification procedures confirm and clearly indicate that the goods qualify as originating and all other requirements of this Chapter are met. 7. The customs authority of importing Party shall verify the authenticity of the Certificate of Origin in accordance with this Article if: 30 (a) the web-database or the ESODE is not functioning properly from force majeure or other valid causes; or (b) the Certificate of Origin issued by the authorised body that was not notified by the Eurasian Economic Commission or the Ministry of Trade of the Republic of Indonesia as provided for in Article 3.29 (Notifications). 8. Notwithstanding subparagraph “a” of paragraph 7 of this Article, if importer is in possession of an original Certificate of Origin, preferential tariff treatment may be granted without obligatory verification procedures. Article 3.34 Verification Visit 1. If the customs authorities of the importing Party are not satisfied with the outcome of the verification referred to in Article 3.33 (Verification of Origin), they may, under exceptional circumstances, request verification visits to the exporting Party to review the records referred to in Article 3.24 (Record-keeping Requirements) and/or observe the facilities used in the production of the goods. 2. In order to conduct a verification visit pursuant to paragraph 1 of this Article, the customs authority of the importing Party shall send a written request with its intention to conduct the verification visit (hereinafter referred to as “the request for verification visit”) to the verification authority of the exporting Party.
A copy of the request for verification visit shall also be transmitted electronically from the customs authority of the importing Party to the verification authority of the exporting Party, via contact email addresses referred to paragraph 1 of Article 3.29 (Notifications). 3. The request for verification visit referred to in paragraph 2 of this Article shall be as comprehensive as possible and shall include, inter alia: (a) the name of the customs authorities of the Party issuing the request; (b) the names of the producer and/or exporter of the goods whose premises are to be visited; (c) the proposed date of the verification visit; (d) the coverage of the proposed verification visit, including reference to the goods subject to the verification and to the doubts regarding their origin; and (e) the preliminary information on the competent authorities performing the verification visit. 31 4. Verification authority of the exporting Party shall send the request to the producer and/or exporter of the goods whose premises are to be visited and provide its response to the requesting Party within 60 (sixty) days from the date of dispatch of the request for verification visit. 5. Where the response from the verification authority is not obtained within 60 (sixty) days from the date of dispatch of the request for verification or a refusal to conduct such verification visit is received, the requesting Party shall deny preferential tariff treatment to the goods referred to in the Proof(s) of Origin that would have been subject to the verification visit. 6. Any verification visit shall be launched within 60 (sixty) days from the date of the receipt of written response and finished within a reasonable period of time (including preparing the report referred to in paragraph 11 of this Article), but no later than 150 (one hundred and fifty) days from the date of receipt of the response. 7. Verification visit shall be carried out by the verification team consisting of the representatives of the competent authorities of the importing and the exporting Parties. 8. Competent authorities of the exporting and the importing Parties shall provide an efficient cooperation required for the verification visit conducted by the verification team. 9. The producer and/or exporter of the goods who has given consent for verification visit shall assist in its implementation, provide access to the premises, financial (accounting) and production documents related to the subject of the verification visit and shall provide any additional information and/or documents, if so requested. 10. If there are obstacles by the authorities or entities of the inspected Party during the verification visit, which result in the absence of possibility to conduct the verification visit except force majeure, the importing Party has the right to deny preferential tariff treatment to the goods concerned. 11. The results of the verification visit shall be documented in the English language in the form of a report prepared by the verification team, which shall clearly indicate the compliance or non-compliance of the verified goods with the requirements of this Chapter. 12. Verification authority of the exporting Party shall send to the producer and/or exporter of the verified goods the results of such verification not later than 20 (twenty) days from the date the verification visit is finished. 13.
Any suspended or denied preferential tariff treatment shall be reinstated based on the results of verification visit, indicating that the goods which are the subject of the verification visit meet the requirements of this Chapter. 14. All costs relating to the participation of representatives of the importing Party in the verification visit shall be borne by the importing Party. 32 Article 3.35 Confidentiality All information provided pursuant to this Chapter shall be treated by the Parties as confidential in accordance with their respective laws and regulations. It shall not be disclosed without the written permission of the person or authority of the Party providing it except to the extent that it may be required to be disclosed in the context of judicial proceedings. Article 3.36 Penalties or Other Measures Against Fraudulent Acts Each Party shall provide for criminal or administrative penalties for violations of its respective laws and regulations related to this Chapter. SECTION V. TRANSITIONAL PROVISIONS Article 3.37 Goods in Transportation or Storage Originating goods which are in the process of transportation from the exporting Party to the importing Party, or which are in temporary storage under customs control in the importing Party for a period not exceeding 6 (six) months before the entry into force of this Agreement, shall be granted preferential tariff treatment if they are imported into the importing Party or declared to the customs authority of the importing Party on or after the date of entry into force of this Agreement, provided that all requirements of Article 3.26 (Granting Preferential Tariff Treatment) have been met. 33 CHAPTER 4 CUSTOMS ADMINISTRATION AND TRADE FACILITATION Article 4.1 Scope This Chapter shall apply to the customs procedures required for the release of goods traded between the Parties in order to: (a) ensure predictability, consistency and transparency of customs procedures; (b) promote efficient administration of customs procedures of the Parties and the expeditious performance of customs operations; (c) encourage harmonisation of customs procedures of the Parties, to the extent possible, with relevant international standards; (d) facilitate trade between the Parties; and (e) strengthen cooperation between the customs authorities of the Parties. For the purposes of this Chapter “customs procedures” means activities undertaken by persons and the customs authorities of a Party concerning the transported goods and means of transport in order to comply with the customs laws and regulations. Article 4.2 General Provisions 1. Each Party shall ensure that its customs procedures are in line with the objectives of this Chapter as provided for in Article 4.1 (Scope). 2. Except as otherwise provided for in this Chapter, Section I of the Agreement on Trade Facilitation contained in Annex 1A to the WTO Agreement shall be applied between the Parties and is incorporated into and forms part of this Agreement. 3. Customs procedures of the Parties shall, where possible and to the extent permitted by their customs laws and regulations, be based on the standards and recommended practices of the World Customs Organization. 4. The Parties shall endeavour to review their customs procedures with a view to simplifying such procedures to facilitate trade. 34 Article 4.3 Publication and Transparency 1. The Parties shall, to the extent possible, publish the customs laws and regulations in the English language. 2.
The customs authorities of each Party shall designate or maintain one or more enquiry points to process enquiries from interested persons concerning customs issues, and shall publish on the Internet information concerning such enquiry points. 3. The Parties shall forward to each other, through the Eurasian Economic Commission and the Directorate General of Customs and Excise, the Ministry of Finance of the Republic of Indonesia, respectively, contact information of the designated enquiry points. Article 4.4 Release of Goods 1. Each Party shall adopt or maintain the application of customs procedures with a view to expediting release of goods in order to facilitate trade between the Parties. This shall not require a Party to release goods where its requirements for the release of such goods have not been met. 2. Pursuant to paragraph 1 of this Article, each Party shall: (a) provide for the release of goods as rapidly as possible after arrival, but under normal circumstances within a period of time no longer than 24 (twenty-four) hours from the registration of a customs declaration, provided that all regulatory requirements have been met; and (b) adopt or maintain an electronic submission and processing of customs information in advance of the arrival of the goods to expedite the release of goods upon arrival. Article 4.5 Customs Cooperation 1. With a view to facilitating the effective operation of this Agreement, the customs authorities of the Parties shall encourage cooperation with each other on key customs issues that affect goods traded between the Parties. 2. Where the customs authority of a Party in accordance with its respective laws and regulations has a reasonable suspicion of an unlawful activity, such customs authority may request the customs authority of the other Party to provide information normally collected in connection with the exportation and/or importation of goods. 35 3. A Party’s request under paragraph 2 of this Article shall be made by an official letter, specifying the purpose for which the information is requested and shall be accompanied by sufficient information to identify the goods concerned. Requests shall be transmitted electronically via channels of communication referred to in paragraph 7 of this Article. A hard copy of the request shall be also sent by post. 4. The requested customs authority under paragraph 2 of this Article shall provide a written response containing the requested information within 90 (ninety) days from the date of the request. If it is impossible to provide full or partial response within the prescribed period of time, the requested customs authority shall inform the requesting customs authority of the expected term for providing such information. 5. All requests and responses to the requests under this Article shall be submitted in the English language. 6. The requested customs authority shall endeavour to provide any other information to the requesting customs authority that would assist such customs authority in determining whether imports from or exports to the requesting Party are in compliance with such Party’s respective laws and regulations. 7. The customs authorities of the Parties shall develop and maintain channels of communication for customs cooperation, including contact points that will facilitate and improve coordination on customs issues. 8. In order to further develop customs cooperation in the areas covered by this Chapter the Parties may enter into negotiations on mutual assistance in customs matters.
Article 4.6 Application of Information Technology The Parties shall apply information technology to support customs procedures in accordance with relevant standards and best practices recommended by the World Customs Organization and other international organisations. Article 4.7 Information Exchange 1. In order to facilitate the implementation of customs procedures and to prevent violations of customs laws and regulations, the Parties may establish and apply on a regular basis information exchange between the customs authorities of the Parties with regard to goods traded between the Parties (hereinafter referred to as “electronic information exchange”). 2. On behalf of the EAEU the electronic information exchange shall be based on the use of the technical infrastructure of the Integrated Information System of the EAEU. 36 3. All the requirements and specifications for the operation of electronic information exchange as well as the specific content of information to be exchanged shall be defined in separate protocol between the authorised bodies of the EAEU Member States and Indonesia. 4. On behalf of the EAEU the Eurasian Economic Commission shall coordinate the creation and facilitate the operation of the electronic information exchange. Article 4.8 Mutual Recognition of Authorised Economic Operators The Parties shall establish a programme of Authorised Economic Operators and may explore negotiating mutual recognition of Authorised Economic Operators programmes between them. Article 4.9 Confidentiality All the information provided pursuant to this Chapter shall be treated by the Parties as confidential in accordance with their respective laws and regulations. It shall not be disclosed without the written permission of the person or authority of the Party providing it except to the extent that it may be required to be disclosed in the context of judicial proceedings. 37 CHAPTER 5 TRADE REMEDIES Section A: General Provisions Article 5.1 General Provisions 1. Except as otherwise provided in this Chapter, the Parties shall apply anti-dumping, countervailing and global safeguard measures in accordance with Articles VI and XIX of the GATT 1994, the Anti-Dumping Agreement, the SCM Agreement and the Safeguards Agreement. 2. The anti-dumping, countervailing and global safeguard measures shall be applied in full compliance with all the relevant WTO requirements and in full respect of the rights of the interested parties to defend their interests. 3. For the purposes of conducting anti-dumping, countervailing duty and global safeguard investigations and any subsequent proceedings, including its reviews initiated after the entry into force of this Agreement, as well as the application of anti-dumping, countervailing or global safeguard measures, Indonesia shall not consider the EAEU Member States as a single entity. 4. Notwithstanding paragraph 3 of this Article, in the case of subsidies within the meaning of Article XVI of the GATT 1994 and Article 1 of the SCM Agreement that are specific within the meaning of Article 2 of the SCM Agreement granted at the level of the EAEU and provided for the products from the EAEU Member States, Indonesia may investigate all other EAEU Member States and apply in accordance with the SCM Agreement countervailing measures. The questionnaire response that the company did not receive the EAEU subsidy is considered a sufficient response for the investigation and may be subject to verification.
A subsidy rate based on the best information available may be assigned to those producers and/or exporters of the EAEU Member States that were determined by the investigating authority of Indonesia as non-cooperative in accordance with the SCM Agreement. Article 5.2 Communications 1. All official communications and documentation exchanged between the Parties with respect to matters covered by this Chapter shall take place between the competent authorities of the Parties. 2. The Parties shall exchange information on the names and contacts of the competent authorities of the Parties, including contact details for information exchange by electronic means, within 30 (thirty) days from the date of entry into force of this Agreement. The Parties shall promptly notify each other of any change to the competent authorities and their contact details. 38 3. If the exchange takes place in print format, all official communications and documentation, including notifications and requests made under this Chapter, shall also be sent without undue delay to the competent authorities by electronic means in a searchable format subject to the requirement to protect confidential information and the provisions of Annex II of the Anti-Dumping Agreement. 4. If a Party fails to provide a notification or request of information to the relevant competent authority of the other Party specified in the notification pursuant to paragraph 2 of this Article, the notification requirement according to this Chapter shall be deemed unfulfilled. Article 5.3 Consultations The Parties may consult on the issues covered by this Chapter. For this purpose, a Party shall provide the other Party with a written request for consultations. The consultations shall take place as soon as possible, to extent possible not later than 30 (thirty) days upon receipt of such a written request. Such consultations shall not prevent the Parties from initiating an anti-dumping, countervailing duty, global safeguard investigation or bilateral safeguard proceeding and shall not impede such investigation or proceeding or imposition of the measures. Article 5.4 Treatment of Confidential Information The investigating authority of a Party shall require interested parties providing confidential information to furnish non-confidential summaries thereof. These non-confidential summaries shall be in sufficient detail to permit a reasonable understanding of the substance of the information submitted in confidence in order to allow the other interested parties in the investigation an opportunity to respond and defend their interests. In exceptional circumstances, such parties may indicate that such information is not susceptible of summary. In such exceptional circumstances, a statement of the reasons why summarisation is not possible must be provided. Article 5.5 Cooperation on Trade Remedies 1. The Parties shall cooperate in the form of a best practice dialogue on trade remedies, comprising representatives at an appropriate level of each Party’s competent authorities. 2. The purpose of this cooperation shall be, but not limited to: (a) enhancing a Party’s knowledge and understanding of the other Party’s trade remedy laws, policies and practices; 39 (b) overseeing the implementation of this Chapter; (c) exchanging information to the extent possible on issues relating to trade remedies; and discussing other relevant topics of mutual interest as the Parties agree; and (d) enhancing the Parties’ knowledge and understanding of anti-circumvention in the implementation of anti-dumping and countervailing measures.
3. The dialogue shall be conducted as and when necessary, as requested by either Party. Section B: Anti-Dumping and Countervailing Measures Article 5.6 Verification of Information In any proceeding in which the investigating authority determines to conduct an on-the-spot verification of information that is provided by a respondent, the investigating authority shall promptly notify each respondent of its intent, and: (a) provide to each respondent at least 14 (fourteen) days in the case of an anti-dumping proceeding and 21 (twenty-one) days in the case of a countervailing duty proceeding an advance notice of the dates on which the investigating authority intends to conduct on-the-spot verification of the information; (b) at least 10 (ten) days for an anti-dumping proceeding and 14 (fourteen) days for a countervailing duty proceeding prior to an on-the-spot verification, provide to the respondent a document that sets out the topics the respondent should be prepared to address during the verification and that describes the types of supporting documentation to be made available for review;4 and (c) after the on-the-spot verification is completed, and subject to the protection of confidential information, disclose the information that describes the extent to which the data provided by the respondent was supported by the documents reviewed during the verification. The respondent concerned by the on-the-spot verification should be informed of the results of the on-the-spot verification before or in the essential facts in sufficient time for the respondent to defend its interests. 4 This does not prevent the investigating authority from adjusting the date, where necessary in light of developments in the investigation, and after consultation with the respondent. 40 Article 5.7 Non-confidential File 1. A Party’s investigating authority shall maintain a non-confidential file for each ongoing investigation or review that contains, to the extent feasible without revealing confidential information, all non-confidential documents in the record of each ongoing investigation or review. 2. The non-confidential file of all non-confidential documents that are contained in the record of the investigation or review shall be timely made available to interested parties, subject to the procedures provided for in the Parties’ laws and regulations. A Party’s investigating authority shall provide timely opportunities for distant electronic download of non-confidential documents contained in the record of the investigation or review. 3. A Party shall make available to the interested parties participating in the investigation an up-to-date list of documents in the record of each ongoing investigation or review to the extent possible electronically. Article 5.8 Deficiency Letter If a Party’s investigating authority determines that a timely response to a request for information may not be ideal in all respects, provided that the interested party concerned has acted to the best of its ability, the investigating authority shall to the extent practicable in light of time limits established to complete the anti-dumping or countervailing duty action, before rejecting the information, endeavour to obtain more complete information for the purposes of the investigation including, where requested, upon cause shown, granting a reasonable extension of time to the respondent concerned to make a more detailed and proper response in accordance with the provisions of the Anti-Dumping Agreement and the SCM Agreement.
If that interested party submits further information and the investigating authority finds that the response is not satisfactory, or that the response is not submitted within the applicable time limits, and if the investigating authority disregards all or part of the original and subsequent responses, the investigating authority shall explain in the determination or other written document the reasons for disregarding the information. Article 5.9 Disclosure of the Essential Facts 1. The Parties shall immediately after any imposition of provisional anti-dumping or countervailing measures and in any case before final determination with regard to the anti-dumping or countervailing measures is made, inform all interested parties of all essential facts, which form the basis for the decision 41 to apply provisional or final measures accordingly. Information shall contain in particular: (a) the names of the suppliers, or when this is impracticable, the supplying countries involved; (b) a description of the product which is sufficient for customs purposes; (c) the basis on which the existence of a subsidy has been determined (for the purposes of a countervailing duty investigation); (d) the margins of dumping or the amount of subsidy and the methodology applied by the investigating authority to determine the normal value, the export price or the amount of subsidy accordingly; (e) the facts available and the source of the facts available used in accordance with Article 6.8 of the Anti-Dumping Agreement or Article 12.7 of the SCM Agreement respectively, as the case may be; (f) the evaluation of all relevant economic factors and indices having a bearing on the state of the domestic industry and enumerated in Article 3.4 of the Anti-Dumping Agreement or Article 15.4 of the SCM Agreement respectively; (g) the demonstration of the causal link between dumped or subsidised imports and injury, examination of any known factors other than the dumped or subsidised imports which at the same time are injuring the domestic industry and non-attribution analysis in accordance with Article 3.5 of the Anti-Dumping Agreement or Article 15.5 of the SCM Agreement respectively; (h) the main reasons leading to the determination. 2. Subject to the protection of confidential information, the investigating authority may use any reasonable means to disclose the essential facts, which includes a report summarising the data in the record, a draft or preliminary determination, or some combination of those reports or determinations, to provide interested parties an opportunity to respond to the disclosure of essential facts. 3. The interested parties shall be given no less than 15 (fifteen) days to make their comments on such disclosure. Article 5.10 Public Notice A public notice of conclusion of an investigation in the case of an affirmative determination providing for the imposition of a definitive duty or the acceptance of a price undertaking shall contain, or otherwise make available through a separate report, all relevant information on the matters of fact and law and reasons which 42 have led to the imposition of final measures or the acceptance of a price undertaking. When confidential information is part of the relevant information on the matters of fact, the disclosure obligation under this provision should be met by the investigating authority by disclosing non-confidential summaries of that information.
Such a notice or report shall contain in particular: (a) the names of the suppliers, or when this is impracticable, the supplying countries involved; (b) a description of the product which is sufficient for customs purposes; (c) the basis on which the existence of a subsidy has been determined (for the purposes of a countervailing duty investigation); (d) the margins of dumping established and a full explanation of the reasons for the methodology used in the establishment and comparison of the export price and the normal value or calculation of the amount of a subsidy and the method used by the investigating authority to calculate the benefit; (e) the evaluation of all relevant economic factors and indices having a bearing on the state of the domestic industry and enumerated in Article 3.4 of the Anti-Dumping Agreement or Article 15.4 of the SCM Agreement respectively and considerations relevant to the injury determination; (f) the demonstration of the causal link between dumped or subsidised imports and injury, examination of any known factors other than the dumped or subsidised imports which at the same time are injuring the domestic industry and non-attribution analysis in accordance with Article 3.5 of the Anti-Dumping Agreement or Article 15.5 of the SCM Agreement respectively and relevant considerations; (g) the main reasons leading to the determination. Article 5.11 Anti-circumvention 1. The Parties recognise the importance of steps needed to counter circumvention practices and agree to cooperate before resorting to an anti-circumvention investigation. The provisions of this paragraph shall not prevent the Parties from initiating an anti-circumvention investigation and shall not impede such investigation. 2. A Party may apply an anti-circumvention measure to imports of a product sold by producers or exporters from another Party only following an anti-circumvention investigation conducted by the Party’s investigating authority. 43 3. An anti-circumvention measure may not be applied to imports of a product sold by producers or exporters from another Party unless the investigating authority demonstrates the existence of circumvention based on evidence and facts, and not merely on allegation, conjecture or remote possibility. 4. The normal value of the product under investigation, parts or modifications thereof shall be their normal value determined during the course of the investigation pursuant to which the importing Party imposed the anti-dumping measure, appropriately adjusted for the purposes of comparison. 5. The Parties shall carry out anti-circumvention investigations in a transparent way and respect the interests and rights of defence of all interested parties concerned by the investigation. 6. The Parties shall aim to cooperate and endeavour to provide the necessary assistance and information to clarify the factual situation subject to the anti-circumvention investigation. 7. In any anti-circumvention investigation in which a Party determines to conduct an on-the-spot verification on the territory of the other Party, the investigated company shall be notified at least 14 (fourteen) days in advance. The other Party’s relevant authorities may participate in the on-the-spot verification. 8. The Party conducting an anti-circumvention investigation shall, before a final determination is made, inform all interested parties on the territory of the other Party of the essential facts under consideration which form the basis for the determination.
All interested parties will be provided an adequate opportunity for commenting on such essential facts. Such disclosure of essential facts should take place within a reasonable period of time for the interested parties to defend their interests. 9. Any anti-circumvention investigation shall be completed within 12 (twelve) months of its date of initiation. Article 5.12 Notifications 1. Upon receipt by a Party’s investigating authority of a properly documented anti-dumping application with respect to imports from the other Party, at least 7 (seven) days after receiving such application and not later than 15 (fifteen) days before the initiation, the Party shall provide written notification to the other Party of its receipt of the application which includes the following: (a) a description of the goods; (b) a tariff classification number under which the goods were imported; (c) the identification of the exporters and countries of export that were named in the application; and (d) the name and address of the investigating authority. 44 2. Upon receipt by a Party’s investigating authority of a properly documented countervailing application with respect to imports from other Party, and at least 7 (seven) days after receiving such application and not later than 15 (fifteen) days before initiating an investigation, the Party shall provide written notification, including invitation for consultation to the other Party, of its receipt of the application that includes, at least, the following: (a) a description of the goods; (b) a tariff classification number under which the goods were imported; (c) the list and summary of subsidy programs; (d) the identification of the exporters and countries of export that were named in the petition; and (e) the name and address of the investigating authority. 3. The Parties shall provide the electronic copies of notifications and requests made under this Section no later than the date of the official letters of notification or request in printed format are sent. Section C: Global Safeguards Article 5.13 Imposition of Global Safeguard Measures 1. A global safeguard measure shall not be applied to a product from the other Party where its share of imports of the product concerned in the importing Party does not exceed 3 (three) per cent of total imports or pursuant to Article 9.1 of the Safeguards Agreement. 2. A Party applying a global safeguard measure, from which imports from the other Party is initially excluded pursuant to paragraph 1 of this Article, shall have the right to subsequently apply a global safeguard measure to imports from the other Party, if the investigating authority determines that the other Party’s share of imports of the product concerned in the importing Party exceeds 3 (three) per cent of total imports. 3. The Party shall immediately provide to the other Party a written notification of all pertinent information upon: (a) initiating an investigation; (b) making a finding of serious injury or threat thereof caused by increased imports; (c) taking a provisional safeguard measure; and 45 (d) taking a decision to apply or extend a global safeguard measure. 4. A Party shall make notifications referred to in paragraphs 3(b) and 3(c) of this Article to the other Party before applying a provisional and/or final global safeguard measure. 5.
The Parties conducting global safeguard investigations shall provide the electronic copies of notifications and requests made under this Article and Article 5.1 (General Provisions) immediately but no later than 5 (five) days from the date of the official letters of notification or request in printed format. Section D: Bilateral Safeguard Measures Article 5.14 Application of Bilateral Safeguard Measures 1. Where, as a result of the reduction or elimination of a customs duty under this Agreement, originating goods of a Party specified in Annex 1 (Schedules of Tariff Commitments) are being imported into the territory of the other Party (hereinafter referred to as “preferential imports”5) in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to constitute serious injury or threat thereof to the domestic industry producing like or directly competitive goods in the territory of the importing Party the importing Party may apply a bilateral safeguard measure to the extent necessary to remedy or prevent the serious injury or threat thereof, subject to the provisions of this Section. 2. If the conditions set out in paragraph 1 of this Article are met, the importing Party may apply a bilateral safeguard measure only in the form of: (a) suspension of the further reduction of any rate of customs duty provided for in this Agreement on the originating good; or (b) increase of the rate of customs duty on the originating good to a necessary level not exceeding the most-favoured-nation applied rate of customs duty in effect at the time the bilateral safeguard measure is applied. 3. Bilateral safeguard measures shall only be applied upon demonstrating clear evidence that increased preferential imports constitute serious injury or are threatening to cause serious injury. 4. In the proceeding to determine whether increased preferential imports constitute serious injury to a domestic industry under the terms of this Article, a Party’s investigating authority shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of that industry, 5 For the purposes of this Section “preferential imports” – imports of originating goods under preferential tariff treatment. 46 in particular, the rate and amount of the increase in preferential imports of the product concerned in absolute or relative terms to domestic production, the share of the domestic market taken by increased preferential imports, changes in the level of sales, production, productivity, capacity utilisation, profits and losses, and employment. 5. A threat of serious injury shall be understood to mean serious injury that is clearly imminent. A determination of the existence of a threat of serious injury shall be based on facts and not merely on allegation, conjecture or remote possibility. 6. A Party’s investigating authority shall demonstrate, on the basis of objective evidence, the existence of the causal link between increased preferential imports of the product concerned and serious injury or threat thereof. In this respect, due consideration shall be given to other factors which are also causing injury to the domestic industry at the same time, including imports of the same product from other countries, and such injury shall not be attributed to increased preferential imports. 7. A Party shall apply a bilateral safeguard measure only following a bilateral safeguard proceeding by the Party’s investigating authority. 8.
A Party shall promptly notify in writing the other Party upon initiating a bilateral safeguard proceeding and the reasons for it. Such notification shall include: (a) a precise description of the originating good subject to the bilateral safeguard proceeding including its heading or subheading under the HS, on which the schedules of tariff commitments in Annex 1 (Schedules of Tariff Commitments) are based; (b) the date of initiation of the bilateral safeguard proceeding; (c) evidence used for initiation of the bilateral safeguard proceeding; (d) the name, address and telephone number of the investigating authority. 9. A bilateral safeguard proceeding shall be concluded within 9 (nine) months following the date of its initiation. 10. The Party intending to apply a bilateral safeguard measure shall promptly and in any case before applying a bilateral safeguard measure notify in writing the other Party and shall provide the opportunity for consultations. 11. The notification pursuant to paragraph 10 of this Article shall contain all pertinent information, including: (a) a precise description of the originating good subject to a bilateral safeguard proceeding, including its heading or subheading under the HS, on which the schedules of tariff commitments in Annex 1 (Schedules of Tariff Commitments) are based; 47 (b) evidence of serious injury, or threat of serious injury, caused by increased preferential imports of an originating good of another Party as a result of the reduction or elimination of a customs duty pursuant to this Agreement; (c) in the case of an extension of the bilateral safeguard measure, evidence that the domestic industry concerned is adjusting; (d) a precise description of the proposed bilateral safeguard measure; (e) the proposed date of introduction of the bilateral safeguard measure and its expected duration; (f) the timetable for the progressive removal of the measure, if relevant; (g) a compensation proposal in accordance with paragraph 14 of this Article. 12. The Parties shall provide the electronic copies of notifications and requests made under this Article no later than the date of the official letters of notifications or request in printed format are sent. 13. The Party shall, within 30 (thirty) days from the date of notification referred to in paragraph 10 of this Article, examine the information provided in order to facilitate a mutually acceptable resolution of the matter. 14. The Party that may be affected by the measure shall be offered compensation in the form of substantially equivalent trade liberalisation in relation to the imports from such Party. 15. Upon the request of any Party, sent within 30 (thirty) days after the receipt of the notification under paragraph 10 of this Article, the Parties shall immediately enter into consultations to arrive at a mutually agreed solution, including compensation. If a mutually agreed solution is reached, this solution shall be laid down in writing and shall be binding upon the Parties. If no mutually agreed solution is reached within 60 (sixty) days from the date of the receipt of the notification referred to in paragraph 10 of this Article, the importing Party may apply a bilateral safeguard measure to resolve the problem and, in the absence of mutually agreed compensation, the Party, against whose good the bilateral safeguard measure is applied, may take a compensatory action. 16.
The compensatory action shall normally consist of suspension of concessions having substantially equivalent trade effects and/or concessions substantially equivalent to the value of the additional duties expected or as a factual result of the bilateral safeguard measure. The Party taking a compensatory action shall apply the action only for the minimum period necessary to achieve the substantially equivalent trade effects and in any event after the bilateral safeguard measure entered into force, only while the bilateral safeguard measure is being applied. 48 17. The compensatory action shall be immediately notified to the other Party in writing at least 30 (thirty) days before the application of a compensatory measure. The notification shall contain: (a) a description of the compensatory measure, including a description of the equivalence of the compensatory measure; (b) a precise description of the originating good subject to the compensatory measure including its heading or subheading under the HS, on which the schedules of tariff commitments in Annex 1 (Schedules of Tariff Commitments) are based, if relevant; (c) a form of the compensatory measure; (d) the date of introduction of the compensatory measure and its expected duration. 18. A Party shall promptly notify in writing the other Party upon taking a decision to apply or extend a bilateral safeguard measure. 19. The notification pursuant to paragraph 18 of this Article shall include: (a) a precise description of the originating good subject to the bilateral safeguard measure including its heading or subheading under the HS, on which the schedules of tariff commitments in Annex 1 (Schedules of Tariff Commitments) are based; (b) a precise description of the bilateral safeguard measure; (c) the date of introduction of the bilateral safeguard measure and its expected duration; (d) the timetable for the progressive removal of the measure, if relevant. 20. A bilateral safeguard measure shall be taken for period not exceeding 2 (two) years. The period of application of a bilateral safeguard measure may be extended by up to 1 (one) year, if there is evidence that it is necessary to remedy or prevent serious injury or threat thereof and that the industry is adjusting. 21. A bilateral safeguard measure shall not be applied in the first year from the date of entry into force of this Agreement. 22. With respect to bilateral trade neither Party shall apply, with respect to the same good, at the same time: (a) a bilateral safeguard measure; and (b) a global safeguard measure under Article XIX of the GATT 1994 and the Safeguards Agreement. 49 23. A Party shall not apply a bilateral safeguard measure again on the same good for the period of time equal to that during which such measure had been previously applied. 24. Transition period means, in relation to a particular good, the period from the entry into force of this Agreement until 5 (five) years after the customs duty on that good is to be eliminated in accordance with Annex 1 (Schedules of Tariff Commitments). 25. Bilateral safeguard measures shall not be applied or maintained after the end of the transition period. 50 CHAPTER 6 STANDARDS, TECHNICAL REGULATIONS AND CONFORMITY ASSESSMENT PROCEDURES Article 6.1 Definitions For the purpose of this Chapter, the terms and their definitions set out in Annex 1 to the TBT Agreement are incorporated into and form part of this Chapter.
Article 6.2 Objective The objective of this Chapter is to increase and facilitate trade in goods between the Parties by: (a) ensuring that standards, technical regulations and conformity assessment procedures do not create unnecessary obstacles to trade; (b) enhancing bilateral cooperation in accordance with the rights and obligations of the Parties with respect to the TBT Agreement as provided in this Chapter, including through bilateral initiatives regarding standards, technical regulations and conformity assessment procedures, as appropriate; (c) promoting mutual understanding of each Party’s standards, technical regulations and conformity assessment procedures; (d) strengthening information exchange and cooperation between the Parties in the field of standards, technical regulations and conformity assessment procedures including the work of relevant international bodies; (e) providing a framework to realise this objective; and (f) addressing the issues that may arise under this Chapter. Article 6.3 Scope 1. This Chapter shall apply to the preparation, adoption and application of standards, technical regulations and conformity assessment procedures of the Parties as defined in Annex 1 to the TBT Agreement which may affect trade in goods between the Parties. 51 2. Notwithstanding paragraph 1 of this Article, this Chapter shall not apply to: (a) purchasing specifications prepared by governmental bodies for production or consumption requirements of governmental bodies; and (b) sanitary and phytosanitary measures, which are covered by Chapter 7 (Sanitary and Phytosanitary Measures). Article 6.4 Affirmation and Incorporation of the TBT Agreement 1. Except as otherwise provided in this Chapter, Articles 2 to 10 as well as Annex 3 to the TBT Agreement shall apply between the Parties and are incorporated into and form part of this Agreement. 2. Nothing in this Chapter shall limit the respective rights and obligations of the Parties under the TBT Agreement. Article 6.5 Standards 1. The Parties recognise the important role that international standards, guides and recommendations can play in supporting greater regulatory alignment and in reducing unnecessary barriers to trade. 2. With respect to the preparation, adoption and application of standards, each Party shall ensure that its standardising body accepts and complies with Annex 3 to the TBT Agreement. 3. Each Party takes into consideration the TBT Committee Decision6 when determining the international standard, guide or recommendation within the meaning of Articles 2 and 5 and Annex 3 to the TBT Agreement. 4. The Parties shall take into consideration the development of standards through processes that are consistent with the TBT Committee Decision. Article 6.6 Technical Regulations 1. The Parties shall, consistent with paragraph 4 of Article 2 of the TBT Agreement, use relevant international standards or the relevant parts of them as a basis for their technical regulations except when such international standards would be an ineffective or inappropriate means for the fulfilment of the legitimate 6 For greater certainty, the TBT Committee Decision should be understood as a Decision of the WTO Committee on Technical Barriers to Trade of 1st January 1995 (G/TBT/1/Rev.13) or its revision. 52 objectives pursued. Where a Party does not use such international standards or their relevant parts as a basis for its technical regulations, it shall explain the reasons upon request of the other Party. 2.
Each Party shall uniformly and consistently apply its technical regulations that are prepared and adopted in a manner consistent with the provisions of the TBT Agreement to its whole territory. 3. Each Party shall give positive consideration to accepting as equivalent, technical regulations of the other Party, even if these regulations differ from its own, provided it is satisfied that these regulations adequately fulfil the objectives of its own regulations. 4. If a Party does not accept a technical regulation as equivalent to its own, the Parties are encouraged to compare the technical regulation and discuss the differences and the reasons for such differences within a reasonable period of time. Article 6.7 Conformity Assessment 1. The Parties recognizes the important role of the relevant regional and international organisations such as the International Accreditation Forum and International Laboratory Accreditation Cooperation in enhancing cooperation in the area of conformity assessment and for the purpose of trade facilitation. In this regard, each Party shall take into consideration the participation status of the other Party’s relevant bodies in such organisations in order to facilitate such cooperation. 2. The Parties shall ensure that when there are two or more conformity assessment bodies authorised by a Party to carry out conformity assessment procedures required for placing the same good on the market, economic operators may choose among them. 3. The Parties recognise that a broad range of mechanisms exists to facilitate the acceptance of the results of conformity assessment procedures, and shall exchange information on such mechanisms with a view to facilitating the acceptance of results of conformity assessment procedures conducted in another Party. Such mechanisms may include but not limited to: (a) recognition of cooperative arrangements between accreditation bodies in the territory of each Party; (b) promotion of mutual recognition of conformity assessment procedures conducted by accredited conformity assessment bodies located in the territory of the other Party; (c) use of existing regional and international multilateral recognition agreements and arrangements; 53 (d) designating conformity assessment bodies by the government of a Party which is located in the territory of the other Party to perform conformity assessment procedures; (e) other mechanisms as mutually agreed by the Parties. Article 6.8 Arrangements for Trade Facilitation 1. Parties shall seek to identify trade-facilitating initiatives regarding standards, technical regulations and conformity assessment procedures that are appropriate for particular issues or sectors of mutual interest subject to the situation of the Party and the specific sectors involved. 2. Where Parties decide to initiate discussions or negotiations on arrangements on mutual recognition of the results of conformity assessment procedures, the Parties shall cooperate on the necessary steps which include: (a) identifying specific products and the respective requirements for such products; (b) assessing the equivalence of technical regulations and the respective conformity assessment procedures for such products; (c) considering the accreditation systems and designation procedures for conformity assessment bodies, including the use of regional and international MRA mechanism for accreditation; and (d) other steps as mutually agreed. 3.
In order to implement the agreements and arrangements on mutual recognition of conformity assessment results as specified in paragraph 2 of this Article, each Party shall normally designate conformity assessment bodies in its territory. 4. Parties shall ensure that all necessary and relevant information shall be provided during discussions over such arrangements. Article 6.9 Transparency 1. The Parties recognise the importance of the provisions relating to transparency in the TBT Agreement. In this respect, the Parties take into consideration relevant decisions and recommendations in terms of transparency adopted by the WTO TBT Committee. 54 2. Each Party shall normally allow 60 (sixty) days from the date of notification to the WTO in accordance with paragraph 9 of Article 2 and paragraph 6 of Article 5 of the TBT Agreement for the other Parties7 to provide comments in writing, except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise. Each Party shall take the comments of another Party into account and endeavour to provide responses to those comments upon request. 3. Each Party shall provide an explanation for the objectives of the proposed technical regulation or conformity assessment procedure and how the technical regulation or the conformity assessment procedure achieves them within 30 (thirty) working days after the receipt of a written request. 4. Where a Party makes notification under paragraph 10 of Article 2 or paragraph 7 of Article 5 of the TBT Agreement due to urgent problems of safety, health, environmental protection or national security, it shall upon written request of the other Party, provide copies of the notified technical regulation or conformity assessment procedure within 10 (ten) working days after receipt of the request. 5. Each Party affirms its commitment to ensure that drafted or adopted technical regulations and conformity assessment procedures are made available in accordance with the relevant requirements of the TBT Agreement. 6. Each Party shall make available to the other Party the list of conformity assessment bodies accredited by its accreditation bodies, as well as information on their scopes of accreditation. 7. The Parties are encouraged to improve transparency in the development of standards, technical regulations and conformity assessment procedures, including the use of electronic tools. 8. Each Party should normally allow at least 6 (six) months from the publication of a technical regulation and its entry into force in order to provide sufficient time for producers to adapt their products or methods of production to the requirements of the other Party, except for situations where urgent problems of safety, health, environmental protection or national security arise or threaten to arise for the Parties or when this would be ineffective in fulfilling the legitimate objectives pursued by the technical regulation. 9. The Parties shall endeavour to exchange information under this Article in the English language. Article 6.10 Information Exchange and Technical Discussions 1. The Parties shall cooperate on areas of mutual interest in the field of standards, technical regulations and conformity assessment procedures. The cooperation will be carried out on mutually agreed terms and conditions. 7 For greater certainty, for the purpose of this paragraph, Parties shall be understood as Parties to this Agreement including their interested parties. 55 2.
A Party may request the other Party to provide information on any matter arising under this Chapter, including on the differences in the contents and structure of the relevant international standards modified in developing the Parties’ national standards. A Party receiving a request under this paragraph shall provide the information within a reasonable period of time and, if possible, by electronic means. 3. Each Party shall give prompt and positive consideration to any request from the other Party for technical discussions on any matter arising under this Chapter. 4. On a request of a Party for technical discussions on any matter arising under this Chapter, the Parties shall agree to enter into technical discussions by notifying the contact points established under Article 6.11 (Contact Points). 5. Technical discussions shall be carried out by the Parties within 30 (thirty) working days of the receipt of the request, unless agreed otherwise by the Parties, with a view to reaching a mutually satisfactory solution of the matter as expeditiously as possible. Technical discussions may be conducted via any means agreed by the Parties. Article 6.11 Contact Points 1. Each Party shall designate a contact point or contact points, which shall have the responsibility for coordinating the implementation of this Chapter. 2. Each Party shall provide the other Party with the information on the designated contact point or contact points, including contact details such as names, telephone numbers and email addresses of contact points. Each Party shall keep this information up to date. 3. Each Party shall provide, upon request by the other Party, the information on relevant competent authorities and a written description of their responsibilities. 4. The communication and information exchange between the contact points shall be conducted in the English language. 56 CHAPTER 7 SANITARY AND PHYTOSANITARY MEASURES Article 7.1 Scope This Chapter shall apply to all sanitary and phytosanitary (hereinafter referred to as “SPS”) measures of the Parties that may, directly or indirectly, affect trade between the Parties. Article 7.2 Definitions The definitions set out in Annex A to the SPS Agreement and the relevant definitions developed by the international organisations: the Codex Alimentarius Commission (hereinafter referred to as “Codex Alimentarius”), the World Organisation for Animal Health (hereinafter referred to as “WOAH”) and the International Plant Protection Convention (hereinafter referred to as “IPPC”) shall apply in the implementation of this Chapter. Article 7.3 General Provisions 1. The Parties reaffirm their existing rights and obligations with respect to each other under this Chapter. Except as otherwise provided for in this Chapter, the SPS Agreement shall apply between the Parties and is incorporated into and forms part of this Agreement. 2. The Parties shall ensure that any sanitary or phytosanitary measure is applied only to the extent necessary to protect human, animal or plant life or health in the territory of the Parties while minimizing the negative effects of the SPS measures on mutual trade. Article 7.4 Equivalence 1. The Parties acknowledge that recognition of equivalence is an important means to facilitate trade. 2.
The Parties may recognise the equivalence of an individual measure, a group of measures or on a systems-wide basis, to the extent that it is feasible and permissible taking into account the relevant standards, guidelines or recommendations of the WTO Committee on SPS Measures, the IPPC, the WOAH and the Codex Alimentarius. 3. The Parties shall, upon request, enter into consultations with the aim of achieving agreements on recognition of the equivalence of an individual 57 measure, a group of measures or a systems-wide basis within a reasonable period of time. Article 7.5 Risk Assessment 1. The Parties shall ensure that their SPS measures are based on an assessment, as appropriate to the circumstances, of the risks to human, animal or plant life or health, taking into account risk assessment techniques developed by the relevant international organisations. 2. In cases where relevant scientific evidence is insufficient, a Party may provisionally adopt SPS measures on the basis of available pertinent information. Article 7.6 Adaptation to Regional Conditions 1. The Parties recognise the concept of adaptation to regional conditions, including pest- or disease-free areas and areas of low pest or disease prevalence as an important means to facilitate trade. 2. In the implementation of paragraph 1 of this Article, the Parties shall consider the relevant standards, guidelines or recommendations of the WTO Committee on SPS Measures, the IPPC and the WOAH. 3. Determination of such areas shall be based on factors such as geography, ecosystems, epidemiological surveillance and the effectiveness of SPS controls. 4. An exporting Party shall provide the necessary evidence in order to objectively demonstrate to the importing Party that such areas are, and are likely to remain, pest- or disease-free areas or areas of low pest or disease prevalence, respectively. Reasonable access shall be given, upon request, to the importing Party for inspection, testing, and other relevant procedures. 5. If the importing Party does not accept the evidence provided by the exporting Party, it shall explain the reasons and shall be ready to enter into consultations. Article 7.7 Audit and Inspections 1. Each Party may carry out an audit and/or inspection taking into account relevant international standards, guidelines or recommendations. 2. An audit shall be systems-wide based and conducted to assess the capability of the regulatory controls of the competent authorities and the official supervision system of the exporting Party to ensure the safety of products and to meet SPS measures of the importing Party or to meet SPS measures 58 that the importing Party has determined to be equivalent to its SPS measures.8 3. The auditing or inspecting Party shall provide the audited or inspected Party with an opportunity to comment on the initial findings of an audit or inspection and take any such comments into account before making its conclusions and taking any action. 4. The auditing or inspecting Party shall provide a report in writing to the audited or inspected Party within a reasonable period of time. The Parties shall, to the fullest extent possible, endeavour to provide a summary of the report with its conclusions in the English language. 5. Costs incurred by the auditing or inspecting Party shall be borne by the auditing or inspecting Party, unless both Parties agree otherwise subject to laws and regulations of the Parties. 6.
Any fees imposed for the procedures on imported products under this Chapter shall be equitable in relation to any fees charged on like domestic products and shall not be higher than the actual cost of the service. Article 7.8 Documents (Certificates) Confirming Safety 1. Where a document (certificate) confirming safety is required to confirm animal or plant health or safety of the products traded between the Parties, the exporting Party shall ensure compliance with the requirements of the importing Party. The importing Party shall ensure that its import requirements are applied in a proportionate and non-discriminatory manner to the extent necessary to protect human, animal or plant life or health taking into account the international standards, guidelines, or recommendations. 2. The Parties agree that procedures for approval of forms of documents (certificates) confirming animal or plant health or safety of the products shall be undertaken and completed without undue delay. If an exporting Party considers that an undue delay arises, the exporting Party may request consultations with the importing Party. 3. The Parties shall promote the use of electronic technologies in the documents (certificates) confirming animal or plant health or safety of the products in order to facilitate trade. Article 7.9 Import Checks 1. The importing Party shall have the right to carry out import checks 8 For greater certainty, nothing in this paragraph prevents the importing Party from performing an inspection of a facility for the purposes of determining if the facility conforms with the importing Party’s sanitary or phytosanitary requirements or conforms with sanitary or phytosanitary requirements that the importing Party has determined to be equivalent to its sanitary or phytosanitary requirements. 59 based on the SPS risks associated with importation. 2. Import checks shall be conducted in accordance with the importing Party’s laws and regulations without undue delay. Article 7.10 Transparency and Information Exchange 1. The Parties shall endeavour to implement transparency in the preparation and application of SPS measures, including through, but not limited to, the exchange of information on their respective SPS measures in a timely manner. 2. When a Party makes notification of an SPS measure to the WTO, this Party shall provide, upon request, copies of the proposed SPS regulation to the requesting Party. 3. Each Party shall allow at least 60 (sixty) days for the other Party to present comments on the proposed SPS measures except where urgent problems of health protection arise or threaten to arise. Each Party shall take the comments of the other Party into account and shall endeavour to provide responses to these comments upon request. 4. The Parties, through their contact points, shall inform each other of recurring or significant cases of non-compliance of SPS measures that directly or indirectly restrict trade and/or threaten human, animal or plant life or health, and exchange relevant documents which confirm this non-compliance without undue delay. 5. Each Party upon written request from the other Party shall provide timely information on any matter related to the SPS measures which has arisen or may arise from bilateral trade between the Parties. 6. Upon request of a Party, the other Party shall provide within 60 (sixty) days information on the status of the Party’s application for market access related to SPS requirements. 7. The Parties shall, to the fullest extent possible, endeavour to exchange information in the English language.
Article 7.11 Emergency Measures 1. The Parties may adopt emergency measures that are necessary for the protection of human, animal or plant life or health. Where a Party adopts such an emergency measure that affects trade between the Parties, that Party immediately notifies9 such measure to the other Party. 9 Such notification shall be considered to have taken place when the information has been notified to the WTO in accordance with the relevant rules and procedures. 60 2. Either Party may request consultations regarding the emergency measures that shall be held as soon as possible unless otherwise agreed by the Parties. Article 7.12 Consultations 1. Each Party may send a request in writing to hold consultations through relevant contact points to resolve any matters arising from the application of an SPS measure, if it considers that such measure affects trade between the Parties. 2. To hold consultations each Party shall endeavour to provide all the necessary information within 30 (thirty) days following the receipt of the request for consultations. 3. The requested Party shall enter into consultations within a period not exceeding 60 (sixty) days upon receipt of the request, unless otherwise mutually agreed, with a view to find a mutually satisfactory solution. If the requesting Party considers the matter is urgent, it may request that consultations shall take place within a shorter time frame and the other Party shall endeavour to enter in such consultations in the proposed time frames. 4. Consultations may be conducted via any means mutually agreed by the Parties concerned. 5. If the Parties concerned consider it necessary, the results of the consultations may be stated in written form and mutually agreed within 2 (two) months. 6. In case either Party considers that the matter cannot be resolved through consultations10, such Party shall have the right to seek resolution through the dispute settlement mechanism provided for in Chapter 12 (Dispute Settlement) of this Agreement. Article 7.13 Cooperation 1. The Parties agree to strengthen their cooperation with a view to increase mutual understanding of their respective SPS systems. This cooperation may include: (a) collaborative work and information exchange between competent authorities on SPS issues within the scope of this Chapter; 10 For greater certainty, no Party shall have recourse to Dispute Settlement under Chapter 12 (Dispute Settlement) for a matter arising under this Chapter without first seeking to resolve the matter through technical consultations in accordance with this Article. 61 (b) encouragement of cooperation of the competent authorities of the Parties involved into issues on food safety, human, animal or plant life or health within the framework of relevant international organisations; (c) development of the exchange of experience, knowledge and best practices between the competent authorities in order to enlarge potential and deepen mutual understanding of the Parties on food safety issues, implementation of SPS measures, preventing the spread of animal diseases and pests spreading; (d) encouragement of the exchange of experience with respect to, inter alia, laboratory testing techniques, disease or pest control methods and risk analysis. 2. The Parties may conclude additional arrangements on matters related to SPS measures including initiatives that promote trade. Article 7.14 Contact Points Each Party shall designate a contact point or contact points to communicate on any matters arising from the implementation of this Chapter.
The contact points’ functions shall include the following: (a) coordinating the operation between the Parties under Article 7.10 (Transparency and Information Exchange); (b) providing information exchange within the scope of this Chapter; (c) receiving and making requests for cooperation within the scope of this Chapter and providing relevant responses; (d) receiving and making requests for consultations and providing relevant responses. The Parties shall exchange names and contact details of their contact points. Each Party shall promptly notify the other Party of any change to its contact point. 62 CHAPTER 8 ELECTRONIC COMMERCE Article 8.1 Objectives 1. The Parties recognise the dynamic and innovative nature of electronic commerce, which has a positive effect on the growth of mutual trade between the Parties and provides benefits to all participants of trade between the Parties. 2. The objectives of this Chapter are to promote the development of electronic commerce between the Parties taking into account the importance of avoiding the imposition of unnecessary barriers related to electronic commerce and enhance cooperation among the Parties regarding development of electronic commerce. Article 8.2 Scope 1. This Chapter shall apply to measures adopted or maintained by a Party that affect trade by electronic means. 2. This Chapter shall not apply to: (a) information held or processed including information collected or transferred, by or on behalf of a Party, or measures related to such information, including measures related to its collection, holding, processing or transfer; and (b) government procurement. Article 8.3 Definitions For the purposes of this Chapter: “personal data” means any information, including data, that refers to an identified or identifiable (either directly or indirectly) natural person, either separately or combined with other information; “unsolicited commercial electronic message” means an electronic message which is sent for commercial or marketing purposes to an electronic address or electronic device, without the consent of the recipient or despite the explicit rejection of the recipient, through an Internet access service supplier or, to the extent provided for under the laws and regulations of each Party, other telecommunications service. 63 Article 8.4 Electronic Authentication and Electronic Signature 1. The Parties shall not deny that electronic signatures have the same legal effect and validity as such signatures in non-electronic form, unless otherwise provided for in their laws and regulations. 2. To the extent possible in accordance with its laws and regulations, each Party shall: (a) permit participants in an electronic transaction to mutually determine and implement an appropriate authentication method and technology for their electronic transaction; (b) not limit the recognition of electronic authentication technologies and their implementation for electronic transactions; and (c) permit participants in electronic transaction to have the opportunity to prove that their electronic transaction complies with its laws and regulations with respect to electronic authentication. 3. For greater certainty, electronic signatures as referred to in paragraph 1 of this Article and the method of electronic authentication as referred to in paragraph 2 of this Article shall comply with the legal requirements prescribed by the laws and regulations of a Party. 4.
The Parties shall endeavour to mutually recognise electronic signatures, where is applicable, and shall encourage the use of interoperable electronic authentication. Article 8.5 Paperless Trading 1. The Parties recognise the importance of eliminating paper forms and documents required for import, export or transit of goods. 2. The Parties shall endeavour to make forms of documents issued or controlled by the competent authorities of a Party required for import, export or transit of goods available to the public in electronic format. 3. The Parties shall endeavour to accept documents issued or controlled by the competent authorities of a Party required for import, export or transit of goods submitted in electronic format as the legal equivalent of the paper version of those documents. 4. The Parties endeavour to implement initiatives which provide for the use of paperless trading taking into account the methods and recommendations agreed by international organisations. 64 5. The Parties shall cooperate in regional or international fora in which the Parties are participants or members to enhance paperless trading. Article 8.6 Electronic Contracts Unless otherwise provided for under the laws or regulations, the Parties shall not deny the legal effect and enforceability of an electronic contract11 solely on the basis that the contract has been made by electronic means. Article 8.7 Personal Data Protection 1. The Parties recognise the economic and social benefits of protecting personal data of users of electronic commerce and the contribution that it makes to enhancing consumer confidence in electronic commerce. 2. The Parties shall adopt or maintain measures that ensure the protection of personal data of the users of electronic commerce in accordance with their laws and regulations. 3. The Parties reserve the right to limit cross-border transfer of personal data when such transfer is effected from one Party to another through the territory of a non-Party to this Agreement. 4. The Parties shall endeavour to maintain the measures that ensure obtaining the individual’s consent for cross-border transfer of their personal data for the use of electronic commerce, except for the cases provided by laws and regulations of the Parties. 5. The Parties shall cooperate, to the extent possible, for the protection of personal data transferred from a Party. Article 8.8 Consumer Protection 1. The Parties recognise the importance of adopting and maintaining transparent and effective measures that enhance consumer confidence and trust in electronic commerce. 2. The Parties shall adopt or maintain measures to proscribe misleading, fraudulent and deceptive commercial activities that cause harm or potential harm, to consumers engaged in electronic commerce. 3. The Parties shall afford to consumers who are engaged in electronic commerce protection at a level not less than that afforded to consumers who are engaged in other forms of commerce. 11 For greater certainty, an electronic contract includes a contract made by interaction with an automated message system. 65 4.
Each Party shall, to the extent possible, take measures to promote the following fair business practice principles in electronic commerce: (a) to provide accurate, detailed and clear information about goods or services and their seller, producer or supplier to enable consumers to make an informed and deliberate decision about the transaction, and retain record of the transaction; (b) to inform the consumer about the warranty period and expiration dates of goods; (c) to ensure the consumer consent to purchase; (d) to provide to consumer, before the purchase is concluded, a possibility to correct or modify the order; (e) to provide the usage of payment mechanisms available to consumers that provide a secure convenient payment; (f) to grant safety of goods or services with conditions of appropriate use based on the information provided; (g) to compensate by seller for damage caused by the violation of consumer rights; (h) to inform the consumer about the delivery method of goods or services. 5. The Parties shall endeavour to provide mechanisms for submission of complaints on the violation of consumer rights and their consideration by the competent authorities of the Party. Such mechanisms should be available for foreign consumers. 6. The Parties shall endeavour to make information regarding the consumer protection mechanisms available to public, including the mechanism for submission of complaint. 7. The Parties recognise the importance of cooperation between their respective consumer protection agencies or other relevant bodies including the exchange of information on laws and regulations, best practices, as well as cooperation in appropriate cases of mutual concern regarding the violation of consumer rights in relation to electronic commerce. Article 8.9 Unsolicited Commercial Electronic Messages 1. Each Party will take into account the importance of minimising the quantity of unsolicited commercial electronic messages. 66 2. Each Party shall endeavour to provide recourse for consumers against suppliers of unsolicited commercial electronic messages that do not comply with the measures adopted or maintained to minimise unsolicited commercial electronic messages in accordance with the laws and regulations of the Party. 3. The Parties shall cooperate in appropriate cases of mutual concern regarding the regulation of unsolicited commercial electronic messages. Article 8.10 Cooperation 1. Recognising the global nature of electronic commerce and with the view to increase the level of confidence in electronic commerce, the Parties shall endeavour to: (a) exchange information and share experience on regulation and enforcement between competent authorities of the Parties, as well as cooperate on: electronic signature; paperless trading; personal data protection; consumer protection; security in electronic commerce; unsolicited commercial electronic message.
(b) prevent misleading, fraudulent and deceptive commercial practices in electronic commerce; (c) encourage the private sector to adopt self-regulation, including through codes of conduct, model contracts, guidelines and other measures that foster electronic commerce; (d) promote dialogue and communication between private sector representatives of the Parties involved in electronic commerce including by means of organizing seminars and expert dialogues; (e) develop approaches on the collection of statistical information on electronic commerce; (f) where feasible, exchange available statistical information on electronic commerce between the Parties; and (g) cooperate in any other spheres of mutual interest. 67 2. The Parties shall endeavour to undertake forms of cooperation that build on and do not duplicate existing cooperation initiatives pursued in international fora. Article 8.11 Contact Points 1. Each Party shall designate a contact point to communicate on any matters arising from the implementation of this Chapter. The contact points’ functions shall include the following: (a) providing information exchange within the scope of this Chapter; (b) receiving and making requests for cooperation within the scope of this Chapter and providing relevant responses; (c) receiving and making requests for consultations under Article 8.12 (Consultations) and providing relevant responses. 2. The Parties shall exchange the names and contact details of their contact points. 3. Each Party shall promptly notify the other Party of any change to its contact point. Article 8.12 Consultations 1. To foster mutual understanding between the Parties, or to address specific matters that arise under this Chapter, each Party shall, upon the request of the other Party’s contact point designated in accordance with Article 8.11 (Contact Points), enter into consultations on issues raised by the other Party. The requested Party shall accord full and comprehensive consideration of the matter that is the subject of consultations as promptly as reasonably possible. 2. To facilitate the discussion of the matter that is the subject of the consultations, each Party shall endeavour to provide relevant non-confidential information to the other Party. The Parties shall aspire to reach consensus on the issue of concern through constructive dialogue. 3. Consultations shall be conducted in the form of a meeting or through other means as agreed by the Parties. 68 Article 8.13 Non-Application of Chapter 12 (Dispute Settlement) Any matter arising under this Chapter shall not be subject to the dispute settlement mechanism provided for in Chapter 12 (Dispute Settlement). 69 CHAPTER 9 INTELLECTUAL PROPERTY Article 9.1 Objectives The Parties recognise the importance of protection and enforcement of intellectual property rights in order to incentivise research, development and creative activity, which will promote economic and social development, as well as dissemination of knowledge and technology. The Parties also recognise the necessity of balance between the legitimate interest of right owners and the general public.
Article 9.2 Definitions For the purposes of this Chapter: “intellectual property” means all categories of intellectual property that are the subject to the provisions of this Chapter; “nationals” means natural or legal persons who are domiciled or have a real and effective industrial or commercial establishment within the customs territories of the Parties; “WIPO” means the World Intellectual Property Organization, established in accordance with the Convention Establishing the World Intellectual Property Organization of 14 July 1967. Article 9.3 International Agreements 1. The Parties, which are party to the TRIPS Agreement, reaffirm their rights and obligations set out therein, including in its interpretative notes as well as in any exceptions, exemptions and waivers to the obligation applicable under the WTO Agreement. The Parties, which are not party to the TRIPS Agreement, shall endeavour to follow the principles and provisions of the TRIPS Agreement. 2. The Parties reaffirm their commitments established in existing international agreements in the field of intellectual property rights, to which they are parties, including the following: (a) the Paris Convention for the Protection of Industrial Property of 20 March 1883 (hereinafter referred to as “Paris Convention”); 70 (b) the Berne Convention for the Protection of Literary and Artistic Works of 9 September 1886; (c) the Patent Cooperation Treaty of 19 June 1970; (d) the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks of 27 June 1989; (e) the WIPO Performances and Phonograms Treaty of 20 December 1996 (hereinafter referred to as “WPPT”); (f) the WIPO Copyright Treaty of 20 December 1996 (hereinafter referred to as “WCT”); and (g) the Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure of 28 April 1977. 3. The Parties, which are not party to the following international agreements, will endeavour to follow their principles and provisions: (a) the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations of 26 October 1961; (b) the Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms of 29 October 1971; (c) the International Convention for the Protection of New Varieties of Plants of 2 December 1961 (hereinafter referred to as “UPOV Convention”); (d) the Geneva Act of the Hague Agreement Concerning the International Registration of Industrial Designs of 2 July 1999; (e) the Singapore Treaty on the Law of Trademarks of 27 March 2006; (f) the Beijing Treaty on Audiovisual Performances of 24 June 2012; and (g) the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired, or Otherwise Print Disabled of 27 June 2013. 71 Article 9.4 National Treatment Each Party shall accord to the nationals of the other Party treatment no less favourable than that it accords to its own nationals with regard to the protection of intellectual property set out in Articles 3 and 5 of the TRIPS Agreement. Article 9.5 Most Favoured Nation Treatment Each Party shall accord to the nationals of the other Party treatment no less favourable than that it accords to the nationals of any other country with regard to the protection of intellectual property set out in Articles 4 and 5 of the TRIPS Agreement. Article 9.6 Copyright and Related Rights 1.
The Parties shall in accordance with their respective laws and regulations, international agreements to which the Parties are parties and Articles 9 through 14 of the TRIPS Agreement provide adequate and effective protection of rights and interests pertaining to authors, performers, producers of phonograms and broadcasting organizations for their works, performances, phonograms and broadcasts, respectively. 2. Each Party shall guarantee the effective protection and provide for enforcement of copyright and related rights in the digital environment in accordance with its respective laws and regulations. Article 9.7 Technological Protection Measures and Rights Management Information 1. The Parties shall in accordance with the WCT and the WPPT provide adequate and effective remedies against circumvention of effective technological measures. 2. The Parties shall in accordance with the WCT and the WPPT provide protection of rights management information. 3. Each Party may provide for appropriate limitations and exceptions to measures implementing this Article in accordance with its respective laws and regulations. 72 Article 9.8 Trademarks 1. The Parties shall in accordance with their respective laws and regulations, international agreements to which the Parties are parties and Articles 15 through 21 of the TRIPS Agreement provide adequate and effective protection of trademarks for goods and services. 2. For the purposes of identifying infringements under Article 16 of the TRIPS Agreement, the usage of a sign12 means, in particular, when a person: (a) applies the sign to goods or labels or the packaging thereof; (b) manufactures, offers or exposes goods for sale, puts them on the market or stocks them for those purposes under the sign, or offers or supplies services under the sign; (c) imports goods under the sign; (d) uses the sign on an invoice, wine list, catalogue, business letter, business paper, price list or other commercial document, including any such document in any medium; (e) uses the sign in advertising; (f) applies the sign on the Internet, including domain names; or (g) uses the sign in any other way provided for in the laws and regulations of the Party. Article 9.9 Well-Known Trademarks 1. No Party may require as a condition for determining that a trademark is well-known that the trademark has been registered in that Party or in another jurisdiction. 2. The Parties shall at least in accordance with Article 6bis of the Paris Convention and Articles 16.2 and 16.3 of the TRIPS Agreement provide protection of well-known trademarks. 12 For greater certainty, the Parties understand that this provision may apply equally to use of a sign in the digital environment. 73 Article 9.10 Registration of Trademarks Each Party shall establish and maintain a system for registration of trademarks, which shall include: (a) a requirement to provide to the applicant a communication in writing about the reasons for a refusal to register a trademark. Such communication may be provided electronically; (b) a requirement that decisions on cancellation proceedings are to be reasoned and provided in writing. Such written decisions may be provided electronically; and (c) an opportunity for interested persons to seek cancellation and invalidation of a trademark after it has been registered.
Article 9.11 Electronic Trademarks System Each Party shall endeavour to establish and maintain: (a) a system for the electronic application for, and maintenance of, trademarks; and (b) a publicly available electronic information system, including an online database, of registered trademarks and trademark applications. Article 9.12 Geographical Indications and Appellations of Origin of Goods 1. The Parties shall in accordance with their respective laws and regulations and Articles 22 and 23 of the TRIPS Agreement ensure adequate and effective legal protection of geographical indications13 or appellations of origin of goods14. 13 For the purposes of this Article “geographical indications” means an indication which identifies a good as originating in the territory of a Party or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin, as defined in Article 22 of the TRIPS Agreement; 14 For the purposes of this Article “appellations of origin of goods” means a geographical denomination that constitutes or contains contemporary or historical, official or unofficial, full or abbreviated name of a country, region or locality or other geographical area, which became known through its use in the country of origin in relation to the goods, the quality and characteristics of which are exclusively or essentially determined by the geographical environment, including natural and human factors. 74 2. The Parties recognise that geographical indications may be protected through a trademark or geographical indications or appellations of origin of goods system, subject to their respective laws and regulations. 3. The Parties may continue discussion and develop further cooperation on the subject matters of this Article, which may include but not limited to: (a) exchange of each Party’s respective list of geographical indications or appellations of origin of goods; (b) entering into negotiations on mutual protection of geographical indications or appellations of origin of goods subject to their respective laws and regulations, availability of resources and willingness of each Party. Article 9.13 Genetic Resources, Traditional Knowledge and Traditional Cultural Expressions 1. The Parties recognise the contribution made by genetic resources, traditional knowledge and traditional cultural expressions to scientific, cultural and economic development and the importance of the acknowledgment of the country of its source or origin. 2. Subject to each Party’s international obligations and its laws and regulations, the Parties may establish appropriate measures to aim for the effective protection of genetic resources, traditional knowledge and traditional cultural expressions. 3. The Parties agree to further discuss relevant issues15 concerning genetic resources, traditional knowledge and traditional cultural expressions, taking into account future developments in their respective laws and regulations and international agreements and without prejudice to the outcome of these future developments. Article 9.14 Plant Varieties 1. The Parties shall endeavour to grant adequate and effective protection to new plant varieties consistent with the UPOV Convention. 2. Paragraph 1 of this Article shall apply without prejudice to the rights of each Party to protect national interest such as to conserve and protect its local plant varieties and government use of protected variety for emergency situations.