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FTAA - Free Trade Area of the Americas

Second Draft Agreement

Chapter on Market Access


  • CHAPTER ON MARKET ACCESS
     


[CHAPTER] ON TARIFFS AND NON-TARIFF MEASURES
 

Section One. General Provisions

Article 1. Scope of application.

1.1. [Except as otherwise provided,] This [Chapter] applies to trade in [originating] goods [between the Parties][of a Party].

1.2. In trade in goods between the Parties, the classification of goods shall be governed by the nomenclature in the updated version of the Harmonized Commodity Description and Coding System.

Article 2. National Treatment.

2.1. Each Party shall accord national treatment to the goods of the other Parties in accordance with Article III of the General Agreement on Tariffs and Trade of 1994, including its interpretive notes, and to this end, Article III of GATT 1994 and its interpretative notes are incorporated into this Agreement and made integral part of said Agreement. [This national treatment shall extend to the sale, offering for sale, purchase, transportation, distribution and use of such goods in the territory of the Parties.]

[2.2. The provisions of paragraph 2.1 on national treatment shall mean [, with respect to a province, [or] state, [department [or any other type of political division]] of the Parties, a treatment no less favorable than the most favorable treatment that province, [or] state, [department] [or any other sphere of political division] accords to any like [, directly competitive or substitutable] goods [direct competitors or substitutes of such Party][as the case may be, of the Party of which it forms a part]] [a binding commitment in the entire national territory].]

[Article 3. Relationship with trade agreements.]

[3.1. None of the provisions of this [Chapter] modifies or alters in any way concessions accorded in relation to customs duties and non-tariff measures in the framework of other trade agreements entered into between the Parties under Article XXIV or the Enabling Clause, both of GATT 1994.] [The FTAA Tariff Elimination Program shall not imply any regression in the degree of trade liberalization attained within the hemisphere. The preferences applied in trade between and among the countries of the hemisphere, as well as the tariff elimination programs agreed in bilateral or subregional agreements shall remain in force.]

Section Two. [Customs]Tariffs

Article 4. Tariff Elimination Program.

[4.1. The Tariff Elimination Program shall apply to trade in originating goods between the Parties.]

[4.2. The base tariffs on which the tariff elimination process will be initiated appear [in Annex [] to the present Agreement] [and are all expressed in ad valorem [and/or applicable specific] terms].]

[4.3. Except as otherwise provided in this Agreement, no Party may increase any existing customs duty, or adopt any new customs duty, on an originating good at a level higher than that specified in the Party’s commitments pursuant to the Tariff Elimination Program.]

4.4. [Except as otherwise provided in this Agreement, as of the entry into force hereof each Party shall eliminate its customs duties [and other import charges] on originating goods, in accordance with the terms established in Annex_____ (Tariff Elimination Program).] [Tariff eliminations shall be applied using percentage margins of preference that shall be applied on ad valorem, specific and mixed tariffs.]

[4.5 During the tariff elimination process, the Parties agree to apply to originating goods traded among them the lesser of either the customs duties established under the Tariff Elimination Program, or the applicable rate determined in accordance with Article I of the GATT 1994. ]

[4.6. The Parties do not assume tariff-related commitments on the goods included in the Annex… (Exclusions).]

[4.7 Used goods shall not benefit from the Tariff Elimination Program covered in this [Chapter], including those identified as such in the Harmonized System headings or sub-headings.]

[4.8. The Parties agree to set the duties on originating goods in the Tariff Elimination Program in ad valorem terms [, thus eliminating any type of mixed, specific or variable tariff].[The Parties may, however, apply the level of customs duty set in ad valorem or other terms.] [Specific and ad valorem tariffs found in different FTAA member countries’ tariff structures must be honored. Nevertheless, upon beginning negotiations an ad valorem equivalent must be set for the specific tariffs as the ceiling for those tariffs as of that moment and which are found in the Annex to the Agreement.]]

[4.9 A If a Party were, at any time, to reduce its most-favored-nation customs duties for one or more of the goods covered by this Agreement, the customs duty applicable in reciprocal trade must be adjusted in keeping with the proportionality rules set forth in Annex ___ (Tariff Elimination Program).] [For cases in which a Party lowers its tariff to a level equal to or less than the existing residual tariff rate, the duty applied to a trading partner shall be determined by the following calculation:

Resimod = MFNi (Bo – Resi) * MFNi
                Bo

Where: MFNi = mfn tariff applied at that time; Bo = base tariff established in the Tariff Elimination Program; Resi = residual tariff corresponding to the current tariff reduction period; Resimod  = modified residual tariff applied to the preferential partner.]

[4.9 B If a Party increases the customs duty in relation to the base tariff, preference shall be applied on the base tariff that appears in Annex []. For cases in which a Party reduces the duty in relation to the base tariff, preference shall automatically be applied to the new duty on the date on which it enters into force. The countries may once again increase the duties to the level of base tariff; in this case, the preference will be applied on the base tariff.]

[4.10. In the case of smaller economies, special, more favorable tariff elimination conditions could be agreed, including longer, differentiated time periods, and a grace period for the initiation of the tariff elimination.] [When the base tariff from which a small economy initiates the tariff elimination process is lower than that of the other countries, the small economy shall not initiate its tariff elimination process until the residual tariff of the other countries is less than or equal to the base tariff of the small economy.]

4.11. A Party may:

[a) increase a customs duty to a level not greater than the one established in the Tariff Elimination Program when that customs duty has previously been unilaterally reduced to a level less than that established in the Tariff Elimination Program.]

[b) [maintain or increase a customs duty when this is permitted pursuant to [a dispute settlement provision of the WTO Agreement, or any other agreement negotiated in accordance with the WTO.] [the [dispute settlement] provisions of [the GATT (1994) and] the Marrakesh Agreement establishing the World Trade Organization]] [or Article VI of GATT 1994 and associated WTO Agreements ].]

[c) create new tariff [break-outs], [at a more detailed level than that established in the Harmonized System,] provided always that the [customs tariff] [margin of preference] applicable to the originating goods concerned is not [greater] [lower] than the one applicable to the tariff fraction broken down under the Tariff Elimination Program.]

4.12. Two or more Parties may carry out consultations to examine the possibility of accelerating the elimination of customs duties set out in the Tariff Elimination Program. [Once approved by these Parties and pursuant to their applicable domestic legal procedures, the agreement regarding the accelerated elimination of the customs tariff shall prevail over any agreement on customs duties or applicable reduction category pursuant to the Tariff Elimination Program.] [These tariff concessions will be extended to the rest of the Parties.] [These tariff concessions will only be extended to those Parties that agreed to the acceleration.]

[4.13. At least once a year, as of the entry into force of this Agreement, the Parties shall examine, through the Committee on Trade in Goods, the possibility of incorporating into the Tariff Elimination Program goods not included in said Program.]

Article 5. Provisions on special regimes.

[[5.1. Refunds and [deferred][waiver of the] payment of tariffs.][Temporary Admission and [Restrictions on] Drawback [, Duty Deferral and Foreign Trade Zones]].]

[5.1.1A. In matters concerning customs duty refunds and exemptions, the Parties preserve their rights and obligations, in accordance with their legislation and WTO commitments.]

[5.1.1B. None of the Parties may refund the customs duties paid, or exempt or reduce the amount of customs tariffs owed with regard to a good imported into its territory, [on the condition that the good is] [that is either:]

[a) subsequently exported to the territory of another Party;]

b) used as material in the production of another good subsequently exported to the territory of another Party; or

c) substituted by an identical or similar good used as material in the production of another good that is subsequently exported to the territory of another Party,

in an amount that exceeds the total of the customs duties paid or owed on that quantity of the imported good that is materially incorporated in the good exported to the territory of the other Party, or replaced by identical or similar goods that are materially incorporated in the good exported to the territory of the other Party, with the due discount for waste.]

[5.1.2. None of the Parties may, on the condition of export, refund, waive or reduce:

a) the anti-dumping or countervailing duties that are applied in accordance with the domestic laws of the Party and which are compatible with the provisions of [Chapter] ____, “Unfair Trade Practices”;

b) the premiums that are offered or collected on imported goods, arising from any tendering system regarding the application of quantitative import restrictions, tariff rate quotas, or preferential tariff-rate quotas; and

c) customs duties paid or owed on a good imported into its territory and substituted by an identical or similar good that is subsequently exported to the territory of the other Party.

Sub-paragraphs a) and b) shall enter into force on .... and sub-paragraph c) shall enter into force when this Agreement takes effect.]

[5.1.3. Paragraph [s 5.1.1 and] 5.1.2 shall not apply to:

a) a good that, pursuant to the legislation of each Party, entered under bond for transportation and exportation to the territory of the other Party;

b) a good exported to the territory of another Party in the same condition as when imported into the territory of the Party from which the good is exported. Processes such as testing, cleaning, re-packaging, inspecting, or preserving the good in its same condition shall not be considered as changes in the condition of the good. When a good has been commingled with fungible goods and exported in the same condition, its origin may be established for the purposes of this paragraph using the inventory methods set out in [Chapter] ___ , “Rules of Origin”;

c) a good imported into the territory of a Party, that subsequently is deemed to be exported from its territory or is used as a material in the production of another good that is subsequently deemed to be exported to the territory of the other Party, or is substituted by an identical or similar good used as a material in the production of another good that is subsequently deemed to be exported to the territory of the other Party, as a result of:

(i) delivery to a duty-free shop, or

(ii) delivery for ship’s stores or supplies for ships or aircraft; [or]

[(iii) delivery for use in joint undertakings of two or more of the Parties and that will subsequently become the property of the Party into whose territory the good was deemed to be imported;]

d) a refund made by one of the Parties of the customs duties paid on a particular good imported into its territory and subsequently exported to the territory of another Party, when this refund is granted by reason of the failure of such good to conform to sample or specification, or by occasion of the shipment of such good without the consent of the consignee; or

e) an originating good that is imported into the territory of a Party and subsequently exported to the territory of another Party, or used as material in the production of another good that is subsequently exported to the territory of another Party, or is substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of another Party.]

[5.1.4. No Party may adopt any new waiver of customs duties, or expand with respect to existing recipients or extend to any new recipient the application of an existing waiver of customs duties, where the waiver is conditioned on the fulfillment of a performance requirement.]

[5.1.5. No Party may condition on the fulfillment of a performance requirement the continuation of any existing waiver of customs duties.]

[5.X.X. Duty-free admission regimes1

5.X.X. Parties shall grant duty-free admission to the following goods, in accordance with the procedures set forth in the Chapter on Customs Procedures, Articles XX-XX:

a) goods admitted temporarily to the territory of a Party;

b) goods reentered to the territory of a Party that have been temporarily exported to the territory of another party; and

c) commercial samples of negligible value and printed advertising materials.]

[5.2. Temporary importation [/admission] [of goods].]

[5.2.1. [The Parties][Each Party] shall grant duty-free temporary importation [or] [/admission] for the goods listed below [that are imported [or admitted] from the territory of another Party into their territory][imported by or for the use of a resident of another Party], [regardless of their origin and regardless of whether [like goods, direct competitors or substitutes,][like, directly competitive or substitutable goods] are available in the territory of the importing Party:]

a) professional equipment [including software and broadcasting and cinematographic equipment] necessary for carrying out the business activity, trade or profession of a business person, [who qualifies for temporary entry pursuant to the laws of the importing country];

[b) equipment for the press or for radio or television broadcasting and cinematographic equipment;]

[c) goods imported for sports purposes or intended for display or demonstration;]

[d) goods intended for display or demonstration, including] commercial samples and advertising films [aimed at procuring orders for goods]; and

e) containers and [similar commercial] vehicles for international transport of goods.]

[5.2.2. [Except as otherwise provided in this Agreement, [the Parties shall permit the duty-free temporary admission of the goods indicated in Article 5.2.1, solely under the following conditions:][the] Parties may subject the duty-free temporary admission of a good of the type indicated in subparagraphs a), b) or c) of paragraph 1 to any of the following conditions, not being able to adopt additional conditions, when:][No Party may condition the duty-free temporary admission of a good referred to in Article 5.2.1., other than to require that such good:]

[a) the good is imported by a national or resident of another Party;]

b) [the good is] [be] used [solely by] [exclusively by the visiting person,] or under [his] [the] personal supervision [of a resident of another Party in the exercise of the], [in the performance of his] business activity, trade or profession [of that person];

c) [the good is not subject to sale, lease or transfer in any other form while it remains in the territory of the Party;] [not be sold or leased while in its territory];

d) [the good is accompanied by a bond or security that does not exceed 110% of the charges that would otherwise be owed, as the case may be, for the entry or final importation, or by another form of security, releasable on re-exportation of the good, except that a bond or security for customs duties shall not be required for an originating good;] [be accompanied by a security in an amount no greater than 110 % of the charges that would otherwise be owed on entry or final importation, releasable on exportation of the article, except that a security for customs duties shall not be required for an originating good;]

e) [the good is] [be] capable of identification [when exported][upon its re-exportation abroad];

f) [the good is re-exported] [be exported] on the departure of that person or within [the][such other] period [of time as is reasonably] related to the purpose of the temporary [importation] [admission, initially up to one year from the date of importation or such longer period as a Party may establish];

g) [the good is][be] imported in no greater quantity than is reasonable for its intended use; and

[h) the good complies with the sanitary and phytosanitary measures and with the applicable standardization measures.]

[i) be otherwise admissible into the Party’s territory under its laws.]]

[5.2.3. Except as otherwise provided in this Agreement, the Parties may subject the temporary import free of customs duty and other charges on imports of a good of the type indicated in subparagraph d) of paragraph 5.2.1, to any of the following conditions, not being able to adopt additional conditions, when:

a) the good is imported only for the purposes of soliciting orders for goods or services that are supplied from the territory of the other Party or from another country that is not a Party;

b) the good is not sold, leased or otherwise transferred, and is used only for demonstrations or exhibitions while in its territory;

c) the good is capable of identification;

d) the good is re-exported within a period of time that is deemed to be reasonable for the purpose of temporary admission;

e) the good is imported in no greater quantity than is reasonable for its intended use;

f) the good is accompanied by a bond or security that does not exceed 110% of the duties that would be owed, as appropriate, for the final importation, or by any other form of guarantee, reimbursable upon re-exportation of the good, except that no bond or security shall be required for the customs duties on an originating good;

g) the good complies with the sanitary and phytosanitary measures and with the applicable standardization measures; and

h) the good undergoes no processing or modification during the authorized period of importation, except for wear and tear due to normal use.]

[5.2.4. [When a good is temporarily imported and does not comply with any of the conditions that a Party imposes in accordance with paragraphs 5.2.2 and 5.2.3, that Party may apply the customs duties and any other charges that would be payable on the entry or final importation thereof.] [A Party may impose the customs duty and any other charge on a good temporarily admitted duty-free under Article 5.2.1. that would be owed on entry or final importation of such good if any condition that the Party imposes under Article 5.2.2. has not been fulfilled.]]

[5.2.5. Each Party shall adopt procedures providing for the expeditious release of the articles described in paragraph 5.2.1. To the extent possible, when such articles accompany a resident of another Party seeking temporary entry, and are imported by that person for use in the exercise of a business activity, trade or profession of that person, the procedures shall allow for the articles to be released simultaneously with the entry of that person.]

[5.2.6. Each Party shall, at the request of the person concerned and for reasons deemed valid by the national customs authorities, extend the time limit for temporary admission beyond the period initially fixed.]

[5.2.7. Each Party shall permit temporarily admitted goods to be exported through a customs port other than the one through which they were imported.]

[5.2.8. Each Party shall relieve the importer of liability for failure to export a temporarily admitted article upon presentation of satisfactory proof to customs authorities that the article has been destroyed within the original time limit for temporary admission or any lawful extension thereof.]

[5.3. Free trade zones [, Export, in-bond assembly, and similar processing zones] ]

[Each Party will provide that when goods imported into its territory are produced in or shipped from free trade zones in the territory of a Party, those goods shall not benefit from the Tariff Elimination Program provided for in this [Chapter].][Products manufactured in processing zones shall benefit from the Tariff Elimination Program if they qualify under the rules of origin established in this Agreement.]

[5.4. [Re-importation][Goods re-entered after repair or alteration]]

[[5.4.1. Parties shall authorize the duty-free re-importation of goods that [, regardless of their origin,] have been temporarily exported to the territory of another Party for repair or alteration.]

[5.4.2. No Party may apply customs tariffs to goods that [, regardless of their origin,] have temporarily entered the territory of the other Party to be repaired or altered. ]]

5.5. Other

[Article 6. [Duty-free entry of certain] Commercial samples [of negligible value][and printed advertising materials]] [Duty-free entry of commercial samples of insignificant value or no commercial value and of printed advertising materials]

[6.1. [Parties][Each Party] shall grant duty-free entry to commercial samples of no [commercial] value [in accordance with the regulations established] [and to printed advertising materials [imported] from the territory of another Party,] [regardless of their origin, but may require that:

a) such samples be imported solely for the solicitation of orders for goods or services provided from the territory of another Party or non-Party; or

b) such advertising materials be imported in no greater quantity than is reasonable for their intended use.]][Such printed advertising materials be imported in packets that each contain no more than one copy of each material and that neither the materials nor the packets form part of a larger consignment.]

Article 7. Customs valuation

7.1. In the reciprocal trade among Parties, the customs valuation of goods shall be [governed by the provisions of] [determined in accordance with] the WTO Agreement on Implementation of Article VII of GATT 1994 [without having recourse to the reserves and options provided for under said Agreement].

[7.2. Pursuant to Article 13 of the Customs Valuation Code, if, in the course of determining the customs value of imported goods, it becomes necessary to delay the final determination of such customs value, the importer of the goods shall be able to withdraw them from customs if, where so required, the importer provides a deposit or other form of security, covering the ultimate payment of customs duties for which the goods may be liable, provided for in the legislation of the Party.]

[7.3. Each Party shall establish appropriate documentation to certify the accuracy of the customs value, which shall be no more than that which could reasonably be requested pursuant to Article VII of GATT 1994.]

[7.4. When a Party uses or applies estimated prices, it shall establish mechanisms to waive application of the provisions of paragraphs 7.2. and 7.3. and shall establish measures to facilitate the administration of such a scheme.]

[7.5. Before a Party adopts or modifies the estimated price referred to in this Article, it shall communicate to the other Parties a description of the good, its tariff item and the proposed estimated price.]

[7.6. The Parties shall hold consultations among themselves in order to ensure that the above does not represent an obstacle to trade. ]

[7.7. The Parties understand that the estimated price referred to in paragraph 7.4. shall serve only as a reference for cases of valuation, and may not be considered as a base price for determining the domestic taxes of each Party or for the application of customs duties or tariffs.]

Section Three. Non-tariff [measures] [restrictions]

Article 8. Import and export restrictions and [licenses][ prohibitions]

8.1. [Except as otherwise provided in this Agreement,] no Party may adopt or maintain any prohibition or restriction on the importation of any [originating] good of another Party or on the exportation or sale for export of any [originating] good destined for the territory of another Party, except [: a) as otherwise provided in this Agreement, or][b)] in accordance with [Article XI of][the] GATT 1994 [including] [and] its interpretative notes [and other pertinent provisions in the WTO Agreements.][For such purposes, Article XI of GATT 1994 and its interpretative notes are incorporated into this Agreement and form an integral part thereof.] [For agricultural products, the provisions of Article 4.2 of the WTO Agreement on Agriculture shall apply.] [No Party shall adopt or maintain any restrictions, prohibitions, taxes, duties, or any charges on the export of any good to the territory of another Party, unless such tax or duty or charge is applied temporarily to alleviate acute shortages. For purposes of this paragraph, “temporarily” means up to one year, or a longer period agreed by the Parties.]

[8.2. In accordance with paragraph 1, no Party may institute or maintain, among others, the following measures:

a) quantitative restrictions on imports;

b) minimum prices or values;

c) export and import price requirements, except as permitted in enforcement of countervailing measures and antidumping duties orders and undertakings;

d) granting of import licensing conditioned on the fulfillment of a performance requirement; or

e) voluntary export restraints not consistent with Article VI of the GATT 1994, as implemented under Article 18 of the WTO Agreement on Subsidies and Countervailing Measures and Article 8.1 of the WTO Agreement on Implementation of Article VI of the GATT 1994.]

[8.3. In the event that a Party adopts or maintains a prohibition or restriction on the import[ation from] or export[ation to] [of a good[s] from or to] a non-Party [country][of a good,] no provision of this Agreement shall be construed to prevent the Party from:

a) limiting or prohibiting the importation from the territory of another Party of such goods of that Non-Party; or

b) requiring as a condition for exporting [such goods of the Party] [the goods] to the territory of another Party, that the [same] [good][s] [same are] not [be] re-exported to the non-Party, directly or indirectly, without being consumed in the territory of the other Party.]

[8.4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a Non-Party, [at the request of any of them,] the Parties, [on the request of any Party,] shall consult with a view to avoiding undue interference with or distortion of pricing, marketing, and distribution arrangements in another Party.]

[8.5. Upon entry into force of this Agreement, each Party shall notify its import licensing procedures in force to all other Parties, and thereafter shall notify all new import licensing procedures and changes to import licensing procedures within 60 days of publication.]

[8.6. Notification of import licensing procedures and changes to import licensing procedures referred to in paragraph 8.5. shall include the following information:

a) list of products subject to import licensing procedures;

b) contact point for information on eligibility;

c) administrative body(ies) for submission of applications;

d) date and name of publication where licensing procedures are published;

e) indication of whether the licensing procedure is automatic or non-automatic according to definitions contained in Articles 2 and 3 of the WTO Agreement on Import Licensing;

f) in the case of automatic import licensing procedures, their administrative purpose;

g) in the case of non-automatic import licensing procedures, indication of the measure being implemented through the licensing procedure; and

h) the expected duration of the licensing procedure, if this can be estimated with some probability, and if not, the reason why this information cannot be provided.]

[8.7. Notification of import licensing procedures and changes to import licensing procedures referred to in paragraph 8.5. is without prejudice to their consistency with the rights and obligations of this Agreement.]

[8.8. Import licensing procedures and changes to import licensing procedures not notified according to paragraph 8.5. shall not be enforced against the Parties.]

[8.9. Paragraphs 8.1. through 8.4. shall not apply to the measures set out in Annex ___.]

[Article 9. Remanufactured goods]

[9.1. No Party may adopt or maintain any prohibition or restriction on the importation of any remanufactured good of another Party and shall accord any remanufactured good of another Party no less favorable treatment than that provided to new like goods, regardless of whether the imported good was remanufactured by the original equipment manufacturer and regardless of whether it is offered for sale under warranty, but may require that:

a) remanufactured goods be identified as such; and

b) meet any standard applicable to new like goods.]

Article 10. [Other administrative procedures][Administrative fees and formalities][Other Charges that affect reciprocal trade]

10.1. [Each Party shall ensure, in accordance with Article VIII:1 of the GATT 1994 and its interpretative notes, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charge applied consistently with Article III:2 of the GATT 1994, and antidumping and countervailing duties applied pursuant to a Party’s domestic law) imposed on, or in connection with, importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic products or a taxation of imports or exports for fiscal purposes.] [No Party shall increase or establish [any] customs processing fees [for the service provided by customs] and shall eliminate these fees for originating goods [upon] [no later than 10 years after] the entry into force of this Agreement.]

[10.2. Notwithstanding the provisions of Paragraph 1, smaller economies shall eliminate such fees no later than 10 years after the entry into force of this Agreement.]

[10.3. No Party may require consular transactions, including related fees and charges, in connection with the importation of any good of another Party.] [In the case of smaller economies, they shall eliminate such fees no later than 10 years after the entry into force of this Agreement.]

[10.4. Upon entry into force of this Agreement, each Party shall notify its current fees and charges imposed on, or in connection with, importation or exportation to all other Parties, and thereafter shall notify all new fees and charges and changes to fees and charges within 60 days of publication.]

[10.5. Notification of fees and charges imposed on or in connection with importation or exportation referred to in paragraph 10.4. shall include the following information:

a) description of the fee or charge, including the amount of the fee or charge and the nature of services rendered;

b) contact point for information;

c) administrative body(ies) that collect(s) the fee;

d) date and name of publication where the fee or charge is published;

e) where and how the fee or charge is collected; and

f) the Party liable for payment.]

[10.6. Notification of fees and charges and changes to fees and charges imposed on or in connection with importation or exportation referred to in paragraph 10.4. is without prejudice to their consistency with the rights and obligations of this Agreement.]

[10.7. Fees and charges and changes to fees and charges not notified according to paragraph 10.4. shall not be enforced against the Parties.]

[10.8. From the date of entry into force of this Agreement, each Party shall ensure that a current list of its fees and charges imposed in connection with importation or exportation is published and made available on the Internet.]

Article 11. Export taxes

[11.1. No Party shall adopt or maintain any tax, duty or other charge on the export of [a] [any] good to the territory of another Party, [unless such tax[es] [or] [,] dut[y][ies] [or charge is] [are] also adopted or maintained on:

[a) exports of any such good to the territory of all other Parties; and

b) any such good when destined for domestic consumption] [such goods when they are to be used for domestic consumption]].]

[11.2. Notwithstanding the contents of 11.1, the Parties reserve the right to impose export taxes on the goods listed in Annex 11.]

Article 12. Other [restrictive] export measures

[Article 13. Dealer protection laws]

[13.1. No Party may maintain or introduce legislation or practice relating to the sale, offering for sale, purchase, transportation, distribution or use of originating goods imported into the territory of that Party which accords greater protection to local distributors of local suppliers than to local distributors of foreign suppliers.]

Section Four. Other measures

[Article 14. Distinctive products]

[14.1. The Parties recognize the following products as distinctive products of the corresponding Party:

Party Distinctive Product
United States Bourbon Whisky and Tennessee Whisky
Mexico Tequila and mezcal
Panama Seco and molas

Therefore, the Parties shall not permit the sale of any product as distinctive products, unless it has been manufactured in the corresponding Party in accordance with its laws and regulations governing the manufacture of the same.]

Section Five. Institutional provisions

[Article 15. Committee on Trade in Goods]

[15.1. The Parties shall create a Committee on Trade in Goods, made up of representatives of each Party, which shall meet at least once a year or at the request of one of the Parties.]

[15.2. The Committee shall be established within six months of the Agreement coming into force. Any decision adopted by the Committee shall be by [common agreement] [consensus].]

[15.3. The Committee shall have the following duties:

a) To monitor the application and administration by the Parties of the [principles][rights and obligations] contained in this [Chapter].

b) To coordinate the activities and ensure the proper functioning of the Non-Agricultural Goods Sub-committee.

c) To examine the proposals regarding [accelerated] tariff elimination that are submitted by the Parties.

d) To assess any proposed modification, amendment or addition to the relevant provisions in order to improve the application of what is set forth in this [Chapter] and to recommend the pertinent changes to the Commission.

e) To coordinate the exchange of commercial information between the Parties.

f) To submit an annual report to the Commission regarding its activities.]

[15.4. The Parties shall establish an Agricultural Sub-committee and a Non-Agricultural Goods Sub-committee, whose duties shall be:

a) To act as a consultation forum for issues relating to market access for agricultural and non-agricultural products.

b) To recommend to the Committee the adoption of measures that encourage free trade between the Parties.

c) To meet at least once a year or at the request of any of the Parties or the Committee.

d) To submit to the Committee any issue over which they have not reached an agreement within sixty (60) days of the date on which they became aware of said issue; and

e) To submit an annual report to the Committee on the agreements reached and activities carried out.]

[Article 16. Publication and Notification]

[16.1 Publication and notification. Each Party shall identify, in terms of tariff classification code and the corresponding nomenclature, measures, restrictions or prohibitions on the import or export of goods for reasons of national security, public health, protection of flora or fauna, environment, sanitary and phytosanitary standards, labeling, technical regulations, international commitments, public order requirements, or any other regulations.]

[a) Prior to official publication, no Party shall apply any general measure adopted by that Party which has the effect of increasing a customs tariff or other charge on the importation of goods of the other Party by virtue of established and uniform usage, or which imposes new or more onerous measures, restrictions or prohibitions on the importation of goods of the other Party or the transfer of funds for the same.]

[b) Considering that sudden devaluations and changes in exchange systems and monetary policies may undermine the trade flow and the initiative to establish a free trade area, the Parties undertake to notify each other whenever such events occur.]

[Article 17. Definitions]

[17.1. The following definitions shall be used for the purposes of this [Chapter]:]

[customs duties]: [the duties that would be applicable to a good that is imported to be used in the customs territory of one of the Parties if the good were not exported to the territory of the other Party;][a tax, duty, or levy on imports and charges of any kind] [any customs or import duty and a charge of any kind] [imposed in connection with the importation of a good, including any form of surtax, surcharge or markup in connection with such importation, except:

a) any charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994], [or any equivalent provision in a successor agreement to which the Parties are signatories] [in respect of like, directly competitive or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;

b) any antidumping or countervailing duty that is applied pursuant to a Party’s domestic law; and

c) any fee or other charge in connection with importation commensurate with the cost of services rendered.], [and

d) any premium offered or collected on imported goods under all systems of tendering, for the administration of quantitative import restrictions or tariff rate quotas or preferential tariff-rate quotas.]]

[goods of a Party: domestic products as these are understood in GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party.]

[goods used for display or demonstrations: [goods used for exhibitions or demonstrations, including their component parts, ancillary apparatus, and accessories.]]

[fungible goods: [goods that are interchangeable in accordance with the definition in [Chapter] ___ “Rules of Origin”.]]

[identical or similar goods: [those that are completely equal, including their physical characteristics, quality, and commercial standing, as well as goods that, although they are not completely equal, have similar characteristics and composition, which allow them to fulfill the same function and be commercially interchangeable.]]

[goods imported or brought in for sports purposes: [sports equipment for use in competitions, sports events or training in the territory of the Party to which it is imported.]]

[remanufactured goods: goods that have been cleaned, tested, and examined for wear, fitted as necessary with replacement component parts, retested and repackaged such that they function in the manner originally intended]

[consumed: (a) actually consumed, or (b) further processed or manufactured so as to result in a substantial change in value, form or use of the good or in the production of another good.]

[duty-free: free of customs duties.]

[material: [a material in accordance with the definition in [Chapter] ___ “Rules of Origin”.]]

[[commercial] samples [of negligible] [or] [without commercial] value: [commercial samples having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount in the currency of another Party, or so], [[those that are] marked, broken, perforated, or [otherwise treated that they are unsuitable for sale or for use except as commercial samples;] [that have been treated in a way that disqualifies them from being sold or from any use other than as samples.]]]

[printed advertising materials: those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials and posters, that are used to promote, publicize, or advertise a good or service, which are essentially intended to advertise a good or service, and are supplied free of charge.]

[advertising films: [recorded visual media, with or without soundtrack, that essentially are made up of images that show the nature or functioning of goods or services being sold or leased by a person established or resident in the territory of one of the Parties, provided that the films are suitable to be shown to potential clients, but not for broadcast to the general public. They are to be imported in packets that contain no more than one copy of each film and that are not part of a larger consignment.]]

[deferral or suspension of tariffs programs: [the measures that govern foreign trade zones, free trade zones, temporary importation under bond, temporary import for re-export, bonded warehouses, inward processing programs and other export processing programs, among others.]]

[repair or alteration: those that do not include an operation or process that either destroys the essential characteristics of a good or creates a new or commercially different good. For the purposes of this definition, it shall be understood that an operation or process which forms part of the production or assembly of an unfinished good, in order to convert it into a finished good, does not constitute the repair or alteration of the unfinished good; a component of a good is a good that can be subject to repair or modification.]

[performance requirement: a requirement that:

a) a given level or percentage of goods be exported;

b) domestic goods or services of the Party granting a waiver of customs duties or an import license be substituted for imported goods;

c) a person benefitting from a waiver of customs duties or an import license purchase other goods in the territory of the Party granting the waiver of customs duties or the import license, or accord a preference to domestically produced goods;

d) a person benefitting from a waiver of customs duties or an import license produce goods in the territory of the Party granting the waiver of customs duties or the import license; or

e) relates in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows.]

[import licensing: administrative procedures requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party.]

[consular transactions: requirements that goods of a Party intended for export to the territory of another Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas approval for commercial invoices, certificates of origin, manifests, shipper’s export declarations, or any other customs documentation required on, or in connection with, importation.]

 
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1 Some delegations propose that the current 5.X.X would replace all of the current sub-articles 5.2 and 5.4 as well as Article 6, because these provisions of these articles are repeated in the [chapter] on Customs Procedures.

 
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