WORLD TRADE  
ORGANIZATION  WT/REG165/1 
25 February 2004 
 (04-0800) 
Committee on Regional Trade Agreements Original:   Spanish 
  
 
FREE TRADE AGREEMENT BETWEEN CHILE AND EL SALVADOR 
 
 
 The following communication, dated 29 January 2 004, is being circulated at the request of the 
delegations of Chile and El Salvador.   The following text reproduces the Free Tr ade Agreement between the Governments of 
Central America and the Governme nt of the Republic of Chile. 
 
_______________ 
 
 
TABLE OF CONTENTS 
 
  Page
 
 
FREE TRADE AGREEMENT BETWEEN THE GOVERNMENTS OF CENTRAL 
AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF CHILE ..................................3  
PREAMBLE ....................................................................................................................... ....................3 
PART ONE.  GE NERAL PART ........................................................................................................ ....4 
CHAPTER 1.  INITIAL PROVISIONS ................................................................................................. 4 
CHAPTER 2.  GENERAL DEFINITIONS............................................................................................5 PART TWO.  TR ADE IN GOODS...................................................................................................... ..9 
CHAPTER 3.  NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS........................9 
CHAPTER 4.  RULES OF ORIGIN.................................................................................................... .25 
CHAPTER 5.  CUSTOMS PROCEDURES.........................................................................................52 CHAPTER 6.  EMERGENCY ACTION .............................................................................................61 CHAPTER 7.  UNFAIR TRADING PRACTICES ..............................................................................68 PART THREE.  TECHNICAL BARRIERS TO TRADE....................................................................70 CHAPTER 8.  SANITARY AND PHYTOSANITARY MEASURES................................................70 
CHAPTER 9.  STANDARDS-RELATED ME ASURES, METROLOGY AND APPROVAL 
PROCEDURES..................................................................................................................... ................76 
PART FOUR.  INVESTMENT, SERVICES AND RELATED MATTERS.......................................83 CHAPTER 10.  INVESTMENT........................................................................................................ ...83 
CHAPTER 11.  CROSS-BORDER TRADE IN SERVICES...............................................................84 
CHAPTER 12.  AIR TRANSPORTATION.........................................................................................89 
CHAPTER 13.  TELECOMMUNICATIONS......................................................................................92 CHAPTER 14.  TEMPORARY EN TRY FOR BUSINESS PERSONS ............................................101 WT/REG165/1 
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PART FIVE.  COMPETITION POLICY ...........................................................................................110 
CHAPTER 15.  COMPETITION POLICY........................................................................................110 PART SIX.  GOVERNMENT PROCUREMENT .............................................................................111 CHAPTER 16.  GOVERNMENT PROCUREMENT........................................................................111 PART SEVEN.  ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS..............................119 
CHAPTER 17.  TRANSPARENCY...................................................................................................119  
CHAPTER 18.  ADMINISTRATION OF THE AGREEMENT .......................................................121 CHAPTER 19.  DISPUTE SETTLEMENT .......................................................................................126 CHAPTER 20.  EXCEPTIONS........................................................................................................ ..135 
CHAPTER 21.  FINAL PROVISIONS ..............................................................................................138  WT/REG165/1 
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FREE TRADE AGREEMENT BETWEEN THE GOVERNMENTS OF CENTRAL AMERICA 
AND THE GOVERNMENT OF THE REPUBLIC OF CHILE 
 
PREAMBLE 
 
  The Governments of the Republics of El Sa lvador, Guatemala, Honduras, Nicaragua, Chile 
and Costa Rica, resolved to : 
 
Strengthen  the bonds of friendship and spirit of cooperation among their nations; 
 
 Contribute to hemispheric integration; 
 
 Establish  clear and mutually advantageous rules governing the promotion and protection of 
investments and their trade in goods and services;  
 Respect their rights and obligations under the Ma rrakesh Agreement Establishing the World 
Trade Organization (WTO) and other bilateral a nd multilateral instruments of integration and 
cooperation; 
 
 Create  an expanded and secure market for the goods and services produced in their territories, 
which is important for facilitating trade in goods and services and the flow of capital and technology; 
 
 Achieve  a better balance in their trade relations; 
 
 Avoid distortions to their mutual trade; 
 
 Enhance  the competitiveness of their firms in global markets; 
 
 Increase new employment opportunities and improve the living standards of their people; 
 
 Promote economic development in a manner consiste nt with environmental protection and 
conservation and with sustainable development; 
 
 Preserve  their capacity to safeguard the public welfare;  and 
 
 Promote  dynamic participation by the different economic agents, particularly the private 
sector, in the effort to enhance economic relations among the Parties and to develop and cultivate, to 
the fullest extent possible, the opportunities fo r their joint presence on international markets; 
 
 Enter into the following  Free Trade Agreement: WT/REG165/1 
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PART ONE.  GENERAL PART 
CHAPTER 1.  INITIAL PROVISIONS 
 
Article 1.01 Establishment of the free trade area 
 1. Through this Agreement, the Parties lay the groundwork for establishing and implementing a 
free trade zone, consistent with Article XXIV of  the GATT of 1994 and Article V of the GATS.  
 2. Unless otherwise provided, this Agreement sh all apply bilaterally between Chile and each of 
the Central American countries considered individually. 
 
3. As established in Article 18.01(4) (Free Trade Commission), the Parties may reduce the 
periods established in their Tariff Eliminati on Programme through impl ementation agreements, 
protocols of a lower rank or under their domestic law,  with the intention of fulfilling the objectives of 
this Agreement.  Article 1.02 Objectives 
 
1. The objectives of this Agreement are to:  
(a) Further develop the free trade zone; 
 
(b) encourage the expansion and diversifica tion of trade in goods and services among the 
Parties; 
 
(c) promote conditions of fair competition in the free trade area; 
 
(d) eliminate barriers to trade and facilitate  the circulation of goods and services in the 
free trade area; 
 
(e) promote, protect and substantially increase investments in each Party;  and 
 
(f) establish effective procedures for the appli cation and observance of this Agreement, 
for its joint administration and for dispute settlement. 
 2. The Parties shall interpret and apply the provi sions of this Agreement in the light of the 
objectives set out in paragraph 1 and in accordance with applicable rules of international law. 
 
Article 1.03 Observance 
 
 Each Party shall ensure, in acco rdance with its constitutional re quirements, that all necessary 
measures are adopted for observance of the provisions of  this Agreement in its territory by all levels 
of government.  Article 1.04 Relation to other international agreements 
 
1. The Parties affirm their existing rights and obligations with respect to each other under the 
WTO Agreement and other agreements to which they are party.  
2. In the event of any inconsistency between th is Agreement and the agre ements referred to in 
paragraph 1, this Agreement shall preva il to the extent of the inconsistency.  WT/REG165/1 
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 3. In the event of any inconsistency between th is Agreement and the specific trade obligations 
set out in:  
(a) The Convention on International Trade in Endangered Species of Wild Fauna and 
Flora, done at Washington, 3 March 1973, as amended 22 June 1979, 
 (b) the Montreal Protocol on Substances that Deplete the Ozone Layer, done on 
16 September 1987, as amended 29 June 1990;  or 
 
(c) the Basel Convention on the Control of  Transboundary Movements of Hazardous 
Wastes and Their Disposal, done on 22 March 1989; 
  such obligations shall prevail to the extent of  the inconsistency, provided that where a Party 
has a choice among equally effective and reasonably available means of complying with such 
obligations, the Party chooses the altern ative that is the least inconsiste nt with the other provisions of 
this Agreement.  
Article 1.05 Successor agreements 
 
 All references to any other international ag reement shall be understood to be made in the 
same terms to a successor agreement to which the Parties are party. 
 
CHAPTER 2.  GENERAL DEFINITIONS 
 Article 2.01 Definitions of general application 
 
 For purposes of this Agreement, unless otherwise specified:   Central America  means the Republics of Costa Rica, El Salvador, Guatemala, Honduras and 
Nicaragua;  
 Central American country  means a country of Central America; 
  chapter means the first two digits in Harmonized System; 
  customs duty  means 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 or surcharge in connection 
with such importation, but does not include any:  
(a) Charge equivalent to an internal ta x imposed consistently with Article III, 
paragraph 2, of the GATT 1994; 
 
(b) anti-dumping or countervailing duty that is applied pursuant to a Party’s domestic law 
and is not applied in a manner that is in consistent with Chapter 7 (Unfair Trading 
Practices); 
 (c) fee or other charge in connection with importation commensurate with the cost of 
services rendered;  and 
 (d) premium offered or collected on an im ported good arising out of any tendering 
system in respect of the administration of  quantitative import restrictions, tariff rate 
quotas or tariff preference levels; 
 WT/REG165/1 
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 Commission  means the Free Trade Commission established under Article 18.01 (The Free 
Trade Commission);   Customs Valuation Agreement  means the Agreement on Implementation of Article VII of 
the General Agreement on Tariffs and Trade 1994, in cluding its interpretative notes, which is part of 
the WTO Agreement; 
  days  means calendar days; 
 
 enterprise  means any entity constituted or organized  under the applicable law of a Party, 
whether or not for profit, and whether privately- owned or governmentally-owned, including other 
economic organizations or units constituted or organized under the a pplicable law of a Party, such as a 
trust, partnership, sole proprietorship, joint ve nture or other association, but does not include 
corporations with bearer stock;  
 existing  means in effect on the date of entry into force of this Agreement; 
  GATS means the General Agreement on Trade in Services, which is part of the WTO 
Agreement;   GATT  1994  means the General Agreement on Tariffs and Trade 1994, which is part of the 
WTO Agreement; 
  goods  means any material, matter, product or part; 
  goods of a Party  means domestic products as these ar e understood in the GATT 1994 or such 
goods as the Parties may agree, and includes originating goods of that Party. Goods of a Party may 
incorporate materials from other countries;   Harmonized system  means the Harmonized Commodity Description and Coding System, 
including its General Rules of Interpretation, S ection, Chapter, Headi ng and Subheading Chapter 
Notes, as adopted and implemented by the Parties in their respective laws; 
 
 heading  means the first four digits in the Harmonized System; 
  measure  includes any law, regulation, provision or practice; 
 
 national  means a natural person of a Party as established in Annex 2.01; 
  originating  goods means qualifying under the rules of origin set out in Chapter 4 (Rules of 
Origin);   Party  means a State in which this Ag reement has entered into force; 
 
 person  means a natural person or an enterprise; 
  person of a Party  means a national or an enterprise of a Party;  
 
 Secretariat  means the Secretariat established under Article 18.03 (The Secretariat); 
  State enterprise  means an enterprise that is owned or  controlled through ownership interests 
by a Party;  
 subheading means the first six digits in the Harmonized System;  WT/REG165/1 
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  Tariff Elimination Programme means the programme established in Annex 3.04(2) (Tariff 
Elimination Programme);   territory  means the land, maritime, and air space of each Party and the exclusive economic 
zone and the continental shelf over which it exerci ses sovereign rights and jurisdiction in accordance 
with international law; 
 
 Understanding  means that Understanding on Rules and Procedures Governing the 
Settlement of Disputes, which is part of the WTO Agreement; 
 
 Uniform Regulations  means the regulations established pursuant to Article 5.12 (Uniform 
Regulations);  and 
 
 WTO Agreement  means the Marrakesh Agreement Establishing the World Trade 
Organization, done on 15 April 1994. 
  
ANNEX 2.01 
COUNTRY-SPECIFIC DEFINITIONS 
  For purposes of this Agreement, unless otherwise specified: 
  National  means: 
 
 (a) With respect to Chile:  
 
(i) A Chilean as defined in Article 10 of the Political Constitution of the 
Republic of Chile;  and 
 (ii) a person who is a permanent resident under Chilean law; 
 
 (b) with respect to Costa Rica: 
 
(i) A Costa Rican by birth in accord ance with Article 13 of the Political 
Constitution of the Republic of Costa Rica;  
 
(ii) a Costa Rican by naturalization in accordance with Article 14 of the Political 
Constitution of the Republic of Costa Rica;  and 
 (iii) a person who is a permanent resident under Costa Rican law; 
 (c) with respect to El Salvador: 
 
(i) A Salvadoran by birth as defined in Article 90 of the Constitution;  (ii) a Salvadoran by naturalization as de fined in Article 92 of the Constitution; 
and 
 
(iii) a person who is a permanent resident under Salvadoran law; 
 (d) with respect to Guatemala:  WT/REG165/1 
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(i) A person born in the territory of the Republic of Guatemala, on Guatemalan 
vessels or aircraft, and children born abroad to a Guatemalan father or 
mother. The children of diplomats a nd others holding legally comparable 
positions are excepted; 
 
(ii) nationals by birth of the Republi cs that constituted the Central American 
Federation if they acquire residence in Guatemala and state to a competent authority their desire to become a Guatem alan citizen. In that event, they may 
retain their nationality of origin, without detriment to the provisions of Central American treaties or conventions;  and 
 
(iii) a person who obtains naturalization under the law; 
 (e) with respect to Honduras:  
(i) A Honduran by birth as defined in Article 23 of the Constitution of the 
Republic of Honduras;  and 
 (ii) a Honduran by naturalization as defi ned in Article 24 of the Constitution of 
the Republic of Honduras;  and 
 
(f) with respect to Nicaragua, a Nicaraguan as determined in Article 15 of the Political 
Constitution of the Republic of Nicaragua. Notwithstanding, foreigners with the 
status of permanent residents as defined in Article 9 of the Immigration Law, Law 
153, published in Gazette 80 of 30 April 1993 ("Ley de Migración, Ley N
o 153, La 
Gaceta No 80, 30 de abril de 1993"), shall enjoy the benefits, rights and obligations 
that this Agreement confers on nationals, solely  with respect to the application of this 
Agreement.  WT/REG165/1 
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PART TWO.  TRADE IN GOODS 
CHAPTER 3.  NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 
 
Section A – Definitions, Scope and Coverage 
 
Article 3.01 Definitions  
 
 For the purposes of this Chapter:  
 Advertising films  means recorded visual media, with or without sound-tracks, consisting 
essentially of images showing the nature or operation of goods or services offered for sale or lease by 
a person established or resident in th e territory of a Party, provided that the films are of a kind suitable 
for exhibition to prospective customers but not for broadcast to the general public, and provided that 
they are imported in packets that each contain no more than one copy of each film and that do not 
form part of a larger consignment; 
  agricultural good means a good classified in one of the following chapters, headings or 
subheadings of the Harmonized System as amended in 1996: 
 
The descriptions are provided  for purposes of reference) 
 
Tariff Classification Description 
Chapters 1 through 24 (Other than a fish or fish product) 
Subheading 2905.43 Manitol 
Subheading 2905.44  Sorbitol 
Heading 33.01 Essential oils 
Headings 35.01 to 35.05 Albuminoida l substances, modified starches 
Subheading 3809.10 Finishing agents 
Subheading 3824.60 Sorbitol, except in subheading 2905.44 
Headings 41.01 to 41.03 Hides and skins 
Heading 43.01 Raw furskins 
Headings 50.01 to 50.03  Raw silk and silk waste 
Headings 51.01 to 51.03 Wool and animal hair 
Headings 52.01 to 52.03 Raw cotton, cotton waste and cotton carded or combed 
Heading 53.01  Raw flax 
Heading 53.02 Raw hemp 
 
 commercial samples of negligible value  means commercial samples having a value 
(individually or in the aggregate as shipped) of not more than one U.S. dollar, or the equivalent 
amount in the currency of any of the Parties, or so  marked, torn, perforated or otherwise treated that 
they are unsuitable for sale or for use except as commercial samples; 
 
 consumed  means: 
 
(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; 
 WT/REG165/1 
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 export subsidies  refer to: 
  (a) The provision by governments or their agencies of direct subsidies, including 
payments in kind, to a firm, to an industry, to producers of an agricultural product, to 
a cooperative or other association of such producers, or to a marketing board; 
 
 (b) the sale or disposal for export by governments or their agencies of non-commercial 
stocks of agricultural products at a price lower than the comparable price charged for 
the like product to buyers in the domestic market; 
 
 (c) payments on the export of an agricultural product that are financed by virtue of 
governmental action, whether or not a charge on the public account is involved, including payments that are financed fro m the proceeds of a levy imposed on the 
agricultural product concerned or on an agricultural product from which the exported product is derived; 
 
 (d) the provision of subsidies to reduce th e costs of marketing exports of agricultural 
products (other than widely available export promotion and advisory services) including handling, upgrading and other processing costs, and the costs of international transport and freight; 
 
 (e) internal transport and freight charges on export shipments, provided or mandated by 
governments, on terms more favourable than for domestic shipments; and 
 
 (f) subsidies on agricultural products con tingent on their incorporation in exported 
products; 
 
 fish and fish products means fish, crustaceans, molluscs and all other aquatic invertebrates, 
marine mammals and by-products thereof, classified in one of the following chapters, headings or 
subheadings of the Harmonized System, as amended in 1996: 
 
(The descriptions are provided for purposes of reference) 
 
Tariff Classification Description 
Chapter 03 Fish and crustaceans, molluscs and other aquatic invertebrates 
Heading 05.07 Ivory, tortoise-shell, marine mammals, horns, antlers, shells, hooves, nails, 
claws an  d beaks, and products thereof 
Heading 05.08 Coral and similar materials 
Heading 05.09 Natural sponges of animal origin 
Subheading 0511.91 Products of fish or crustaceans, molluscs or other aquatic invertebrates; dead 
animals of Chapter 3 
Heading 15.04 Fats and oils and their fractions, of fish or marine mammals 
Heading 16.03 Extracts and juices other than of meat 
Heading 16.04 Prepared or preserved fish 
Heading 16.05 Prepared or preserved crustaceans, molluscs and other aquatic invertebrates 
Subheading 2301.20 Flours, meals, pellets, of fish 
 
 goods imported for sports purposes  means sports equipment for use in sports contests, 
events or training in the territory of the Party into whose territory such goods are imported; 
  goods intended for display or demonstration  includes their component parts, ancillary 
apparatus and accessories;   WT/REG165/1 
 Page 11 
 
 
 printed advertising materials  means those goods classified in Chapter 49 of the Harmonized 
System, including brochures, pamphlets, leaflets , trade catalogues, yearbooks published by trade 
associations, tourist promotional materials and posters that are used to promote, publicize or advertise 
a good or service and are supplied free of charge;  
 repair or alteration  does not include an operation or process that either destroys the essential 
characteristics of a good or creates a new or comme rcially different good. An operation or process 
that is part of the production or assembly of an un finished good into a finished good is not a repair or 
alteration of the unfinished good; a component of a g ood is a good that may be subject to repair or 
alteration;  and 
 
 temporary admission of goods means temporary admission of goods or temporary 
importation of goods.  
Article 3.02 Scope and Coverage 
 
 This Chapter applies to trade in goods among the Parties. 
 
Section B – National Treatment 
 Article 3.03 National treatment 
 
1. Each Party shall accord national treatment to  the goods of another Party in accordance with 
Article III of the GATT 1994, including its interpreta tive notes, which are incorporated into and made 
part of this Agreement.  
2. For the purposes of paragraph 1, each Party sh all accord the goods of another Party treatment 
no less favourable than the most favourable treatment  accorded by that Party to any like, directly 
competitive or substitutable goods of national origin. 
 
Section C – Tariffs 
 
Article 3.04 Tariff elimination  
1. Except as otherwise provided in this Agreem ent, no Party may increase any existing customs 
duty, or adopt any new duty, on an originating good.  
2. Except as otherwise provided herein, when this Agreement comes into fo rce, each Party shall 
progressively eliminate its customs duties on all orig inating goods in accordance with the terms of 
Annex 3.04 (Tariff Elimination Programme).  3. Paragraph 1 does not prevent a Party from raisi ng a customs duty to a level not greater than 
the level established in the Tariff Elimination Pr ogramme, where that customs duty has previously 
been unilaterally reduced to a level below the leve l established in the Tariff Elimination Programme. 
During the tariff elimination process, the Parties ag ree to apply to originating goods traded among 
them the lesser of either the customs duties estab lished under the Tariff Elimination Programme or the 
applicable rate determined in accordan ce with Article I of the GATT 1994. 
 
4. On the request of any Party, the Parties shall consult to consider accelerating the elimination 
of customs duties set out in their Tariff Elimination Programme.  WT/REG165/1 
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5. An agreement reached on the basis of paragra ph 4 to accelerate the elimination of a customs 
duty on an originating good shall be done in te rms of Article 18.01(4) and (5) (Free Trade 
Commission) and shall prevail over any duty rate or staging category determined pursuant to the 
Tariff Elimination Programme for that good.  
6. Except as provided in Annex 3.04(6), the customs duties on the goods in the Tariff 
Elimination Programme are established in ad-valorem terms.  7. Paragraphs 1 and 2 are not intended to prevent a Party from maintaining or raising a customs 
duty that may be permitted under the Understanding or  any other agreement that forms part of the 
WTO Agreement. 
 
Article 3.05 Temporary admission of goods 
 
1. Each Party shall grant duty-free temporary admission, including exemption from the fee 
charged by Chile for the use of this regime specified in Annex 3.05, for: 
 
(a) Professional equipment necessary for ca rrying out the business activity, trade or 
profession of a business person who qualifies for temporary entry pursuant to Chapter 14 (Temporary Entry for Business Persons); 
 
(b) equipment for the press or for sound or television broadcasting and cinematographic 
equipment; 
 (c) goods imported for sports purposes and goods in tended for display or demonstration;  
and 
 
(d) commercial samples and advertising films; 
  imported from the territory of another Party, regardless of their origin and regardless of 
whether like, directly competitive or substitutabl e goods are available in the territory of the 
Party. 
 
2. Except as otherwise provided in this Ag reement, no Party may condition the duty-free 
temporary admission of a good referred to in paragraph 1( a), (b) or (c), other than to require that such 
good: 
 
(a) Be imported by a national or resident of another Party who seeks temporary entry; 
 (b) be used solely by or under the personal s upervision of such person in the exercise of 
that person’s the business activity, trade or profession; 
 (c) not be sold or leased while in its territory; 
 
(d) be accompanied by a bond in an amount no greater than 110 per cent of the charges 
that would otherwise be owed  on final importation, or by another form of security, 
releasable on exportation of the good, except that a bond for customs duties shall not 
be required for an originating good; 
 
(e) be capable of identification when exported;  (f) be exported on the departure of that person or  within such other period of time as is 
reasonably related to the purpose of the temporary admission; and 
  WT/REG165/1 
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(g) be imported in no greater quantity than is reasonable for its intended use. 
 3. Except as otherwise provided in this Ag reement, no Party may condition the duty-free 
temporary admission of a good referred to in paragr aph 1(d), other than to require that such good: 
 
(a) Be imported solely for the solicitation of orders for goods from another Party, 
regardless of whether they are originating goods, or services provided from the territory of another Party; 
 (b) not be sold, leased or put to any use othe r than exhibition or demonstration while in 
its territory; 
 (c) be capable of identification when exported;  (d) be exported within such period as is reasonably related to the purpose of the 
temporary admission; and 
 (e) be imported in no greater quantity th an is reasonable for its intended use. 
 4. Where a good is temporarily admitted duty fr ee under paragraph 1 and any condition a Party 
imposes under paragraph 2 and 3 has not b een fulfilled, that Party may impose: 
 
(a) The customs duty and any other charge th at would be owed on final importation of 
the good;  and 
 (b) any applicable criminal, civil or admini strative penalties that the circumstances may 
warrant. 
 5. Subject to Chapters 10 (Investment) and 11 (Cross-Border Trade in Services): 
 
(a) Each Party shall allow a vehicle or containe r used in international traffic that enters 
its territory from the territory of another Party to exit its territory on any route that is 
reasonably related to the economic and prompt departure of such vehicle or container; 
 (b) no Party may require any bond or impose any penalty or charge solely by reason of 
any difference between the port of entry and the port of departure of a vehicle or container; 
 
(c) no Party may condition the release of any obligation, including any bond, that it 
imposes in respect of the entry of a vehicle or  container into its territory on its exit 
through any particular port of departure;  and 
 (d) no Party may require that the vehicle or carrier bringing a container from the territory 
of another Party into its territory be the same one that takes it to the territory of 
another Party. 
 6. For purposes of paragraph 5, "vehicle" means a truck, a truck tractor, tractor, trailer unit or 
trailer, a locomotive, or a railway car or other railroad equipment.  WT/REG165/1 
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Article 3.06 Duty-free entry of commercial samples of negligible or no commercial value and 
printed advertising materials 
 
 Each Party shall grant duty-fr ee entry to commercial samples of  negligible or no commercial 
value and to printed advertising ma terials imported from the territory of the other Party, regardless of 
their origin, but may require that: 
 
(a) Such samples be imported solely for th e solicitation of orders for goods or services 
from another Party, regardless of whether th ey are originating goods or of whether 
the services are provided from the territory of another Party or that of a non-Party;  or 
 
(b) such advertising materials be imported in packets that each contain no more than one 
copy of each such material and that neither such materials nor packets form part of a 
larger consignment. 
 
Article 3.07 Goods re-entered after repair or alteration  
1. No Party may apply a customs duty to a good, regardless of its origin, that re-enters its 
territory after that good has been exported or tempor arily removed from its territory to the territory of 
another Party for repair or alteration, regardless  of whether such repair  or alteration could be 
performed in its territory. 
 
2. No Party may apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of another Party for repair or alteration.  3. Re-entry under paragraph 1 and temporar y admission under paragraph 2 shall take place 
within the time limit established in the law of the Parties. 
 
Article 3.08 Customs valuation 
 
 The Customs Valuation Agreement shall govern the customs valuation rules applied by the 
Parties to their reciprocal trade, in the form in which the Parties have adopted it. Notwithstanding, the 
Parties agree that they will not determine the va lue of goods on the basis of minimum values, except 
as stipulated in Annex 3.08.  
Article 3.09 Restrictions on export subsidy programmes 
  The Parties shall establish the treatment of domestic support for agricultural goods and export 
subsidy programmes in Annex 3.09.  
Section D – Non-Tariff Measures 
 
Article 3.10 Import and export restrictions 
 1. The Parties undertake to completely and i mmediately eliminate non-tariff barriers, with the 
exception of the rights of the Parties under Articles XX and XXI of the GATT 1994 and those regulated in Chapter 8 (Sanitary and Phytosanita ry Measures) and Chapter 9 (Standards-Related 
Measures, Metrology and Approval Procedures). 
 
2. Except as otherwise provided in this Agre ement, no Party may adopt or maintain any 
prohibition or restriction on the importation of any good of another Party or on the exportation or sale 
for export of any good destined for the territory of another Party, except in accordance with Article XI 
of the GATT 1994, including its interpretative notes.  To this end, Article XI of the GATT 1994 and 
its interpretative notes are incorporated into  and made a part of this Agreement.  WT/REG165/1 
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 3. The Parties understand that the GATT 1994  rights and obligations incorporated by 
paragraph 2 prohibit, in any circumstances in which an y other form of restriction is prohibited, export 
price requirements and, except as permitted in enfo rcement of countervailing and antidumping orders 
and undertakings, import price requirements. 
 
4. In the event that a Party adopts or maintains a prohibition or restriction on the importation from or exportation to a non-Party of a good, nothing in this Agreement shall be construed to prevent 
the Party from:  
(a) Limiting or prohibiting the importation from the territory of another Party of such 
good;  or 
 (b) requiring as a condition of export of such goo d to the territory of another Party, that 
the good not be re-exported to the non-Party, directly or indirectly, without being 
consumed in the territory of the other Party. 
 5. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, on request of anothe r Party, shall consult with a view to avoiding 
undue interference with or distortion of pricing, mark eting and distribution arrangements in that other 
Party. 
 
6. Paragraphs 1 through 4 shall not apply to the measures set out in Annex 3.10(6). 
 
Article 3.11 Customs processing fees and consular fees 
 1. Subject to Annex 3.11(1), when this Agreem ent comes into force the Parties shall not apply 
any existing customs processing fees, including th ose established in Annex 3.11(1), and shall not 
adopt any new customs user fee on originating goods.  2. Subject to Annex 3.11(2), no Party shall collect consular fees or charges or require consular 
formalities on originating goods after this Agreement comes into force. 
 Article 3.12 Geographical indications 
 
1. Each Party shall recognize and protect the geogr aphical indications and appellations of origin 
of another Party, as established in this Article. 
 
2. No Party shall permit the importation, manuf acture or sale of a good that uses a geographical 
indication or appellation of origin protected in another Party, unless it has been manufactured and 
certified therein, pursuant to its legislation applicable to that good.  3. Paragraphs 1 and 2 shall only have effect with respect to t hose geographical indications and 
appellations of origin protected by  the domestic legislation of the Pa rty that is claiming protection and 
whose definition is consistent with Article 22 (1 ) of the Agreement on Trade-Related Aspects of 
Intellectual Property Rights, which is part of the WTO Agreement. Further, to gain protection, each 
contracting Party shall notify the other Parties of th e geographical indications or  appellations of origin 
which, fulfilling the above-mentioned requirements,  shall be considered within the scope of the 
protection.  
 
4. All of the above shall be understood without pr ejudice to the recognitio n that the Parties may 
grant to homonymous geographical indications and appellations of origin that legitimately could 
belong to a non-Party.  
 WT/REG165/1 
Page 16  
 
Article 3.13 Country of origin marking 
 
1. Each Party shall apply to the goods of another Party, where relevant, its legislation on country 
of origin markings, in accordance with Article IX of  the GATT 1994. To that end, Article IX of the 
GATT 1994 is incorporated into and made an integral part of this Agreement. 
 
2. Each Party shall accord the goods of anothe r Party treatment no less favourable than it 
accords to the goods of a non-Party with respect to the application of rules relating to country of origin markings, in accordance with Article IX of the GATT 1994.  
3. Each Party shall ensure that  the establishment and application of the respective legislation on 
country of origin markings is not intended to cr eate, and does not have the effect of creating, 
unnecessary obstacles to trade among the Parties. 
 
Article 3.14 Export taxes 
 
 Except as provided in Annex 3.14, no Party ma y adopt or maintain any duty, tax or other 
charge on the export of any good to the territory of another Party, unless such duty, tax or charge is 
adopted or maintained on any such good when destined for domestic consumption. 
 
Article 3.15 International obligations 
 
 A Party, prior to adopting a measure unde r an inter-governmental agreement on goods 
pursuant to Article XX(h) of the GATT 1994, whic h may affect the trade in commodities among the 
Parties, shall consult another Party to prevent th e nullification or impairment of a concession granted 
by that Party under Article 3.04. 
 
Article 3.16 Committee on Trade in Goods 
 
1. The Parties establish a Committee on Trade in Goods whose composition is established in 
Annex 3.16.  
2. The Committee shall examine matters related to  this Chapter, Chapter 4 (Rules of Origin), 
Chapter 5 (Customs Procedures) and the Uniform Regulations.  3. Without detriment to Article 18.05(2) (Committees), the Committee shall: 
 
 (a) Refer to the Commission matters that impede  access to markets in the territory of the 
Parties, particularly relating to the application of non-tariff measures;  and 
 
 (b) promote trade in goods among the Parties, through consultations and studies to 
accelerate the elimination of tariffs by modifying the time limits established in Annex 3.04(2) (Tariff Elimination Programme). 
 
ANNEX 3.04(6) 
PRICE BANDS 
 
1. Except as otherwise provided in Annex 3.04(2) (Tariff Elimination Programme), the Parties 
may, subject to the conditions of this Annex, use price band systems. 
 2. In using price band systems relating to impor ts of goods, the Parties shall not, within the 
scope of this Agreement, incorporate new products or modify the mechanisms or apply them in a 
manner that restricts access to their respective territories. 
  WT/REG165/1 
 Page 17 
 
 
3. The Tariff Elimination Programme shall not apply to the specific duties deriving from the price band systems. However, in the event that these  specific duties are dismantled in full or in part 
with respect to any Party or non-Party after this Agr eement comes into force, the Party that applies the 
price band system shall grant the other Party treatme nt no less favourable than it grants to any other 
Party or non-Party. 
 
4. For the purposes of this Annex, the Parties in corporate their applicable law and the schedule 
of goods that are currently included in the price band systems, which are listed below. 
 
In the case of Chile 
 
 The products covered by La w 18.525 ("Ley 18.525"), in accordance with the Chilean 
Harmonized System, as amended by the 1996 Harmonized System are: 
 
(Note:  The descriptions are pr ovided for purposes of reference) 
 
Tariff classification Description 
Subheading 1001.90 Wheat and meslin, except hard wheat 
Heading 11.01 Wheat or meslin flour 
Subheading 1507.10 Crude soybean oil 
Subheading 1507.90 Other soybean oil 
Subheading 1508.10 Crude peanut oil 
Subheading 1508.90 Other peanut oil 
Subheading 1509.10 Virgin olive oil 
Subheading 1509.90 Other olive oil 
Heading 15.10 Other olive oils and blends of these oils with oils 
from heading 15.09 
Subheading 1511.10 Crude palm oil 
Subheading 1511.90 Other palm oil 
Item 1512.11.10 Crude sunflower-seed oil 
Item 1512.11.20 Crude safflower-seed oil 
Item 1512.19.10 Other sunflower-seed oil 
Item 1512.19.20 Other safflower-seed oil 
Subheading 1512.21 Crude cottonseed oil 
Subheading 1512.29 Other cottonseed oil 
Subheading 1513.11 Crude coconut oil 
Subheading 1513.19 Other coconut oil 
Subheading 1513.21 Crude palm kernel or babassu oil 
Subheading 1513.29 Other palm kernel or babassu oil 
Subheading 1514.10 Crude rapeseed, colza or mustard-seed oil 
Subheading 1514.90 Other rapeseed, colza or mustard-seed oil 
Subheading 1515.21 Crude corn oil 
Subheading 1515.29 Other corn oil 
Subheading 1515.50 Sesame oil 
Subheading 1515.90 Other vegetable oil 
Subheading 1701.11 Raw cane sugar 
Subheading 1701.12 Raw beet sugar 
Subheading 1701.91 Other cane or beet sugar and sucrose containing 
added flavour or colouring 
Subheading 1701.99 Other cane or beet sugar and sucrose 
 WT/REG165/1 
Page 18  
 
In the case of Honduras  
 
 Under Decree No. 31-92 of 6 April 1992, Law for the Modernization and Development of the 
Agricultural Sector ("Decreto N° 31-92 del 6 de abril de 1992, Ley para la Modernización y el 
Desarrollo del Sector Agrícola") and Resolution No. 0105-93 of 20 April 1993, Regulations on the 
Marketing of Agricultural Products ("Acuerdo N°  0105-93 del 20 de abril de 1993, Reglamento de 
Comercialización de Productos Agrícolas"), the prod ucts subject to the import price band system, in 
accordance with the Central American Tariff Syst em, as amended by the 1996 Harmonized System, 
are: 
 
(Note:  The descriptions are pr ovided for purposes of reference) 
 
Tariff classification Description 
Item 1005.90.20 Yellow corn 
Item 1005.90.30 White corn 
Item 1007.00.90 Other 
Subheading 1102.20 Corn flour 
Subheading 1103.13 Groats and seminola of wheat 
Subheading 1108.12 Corn starch 
 
 
ANNEX 3.05 
TEMPORARY ADMISSION OF GOODS 
 
In the case of Chile  
 The temporary admission of goods from any Party,  specified in Article 3.05(1) shall not be 
subject to payment of the fee established in Ar ticle 106 of Chilean Customs Ordinance ("Ordenanza 
de Aduanas") contained in Decree with Force of Law No. 2 of the Ministry of Finance, Official Gazette, 21 July 1998 ("Decreto con Fuerza de Ley N°  2 del Ministerio de Hacienda, Diario Oficial, 
21 julio 1998"). 
 
 
ANNEX 3.10(6) 
IMPORT AND EXPORT RESTRICTIONS 
 
Chilean measures 
 
 Notwithstanding Articles 3.03 and 3.10, Chile ma y adopt or maintain measures relating to the 
import of used vehicles, as established in Law 18.483 ("Ley 18.483") or under any equivalent successor legislation.  Costa Rican measures 
 
1. Notwithstanding Articles 3.03 and 3.10, Costa Rica may adopt or maintain measures relating 
to the government monopoly over the importation, refi ning and wholesale distribution of crude oil, its 
derived fuels, asphalts and naphthas in the follo wing tariff classifications, in accordance with 
Law 7356 of 6 September 1993 ("Ley 7356 del 6 de septiembre de 1993 ") or any equivalent successor 
legislation: 
  WT/REG165/1 
 Page 19 
 
 
(Note:  The descriptions are pr ovided for purposes of reference) 
 
Tariff classification Description 
Heading 27.09 Crude petroleum oils and oils obtained from 
bituminous minerals 
Heading 27.11 Natural gas (liquefied) 
Subheading 2711.12 Propane 
Subheading 2711.13 Butane 
Subheading 2711.19 Other 
Subheading 2711.21 Natural gas (gaseous) 
Subheading 2711.29 Other 
Subheading 2714.90 Other (asphalt) 
Heading 27.16 Electrical energy 
 
2. Notwithstanding Articles 3.03 and 3.10, Costa Ri ca may adopt or maintain restrictions on the 
import of the used goods described in the following  tariff classifications of the Central American 
Tariff System, as amended by the 1996 Harmonized System:  
(Note:  The descriptions are pr ovided for purposes of reference) 
 
Tariff classification Description 
Subheading 4012.10 Retreaded rubber tires 
Subheading 4012.20 Used rubber tires 
Heading 63.05 Sacks and bags used for packing and other used 
containers 
Heading 63.09 Clothing and textile articles, made up articles and 
footwear 
Heading 63.10 Rags, twine, rope and cordage in scrap or worn 
out articles of textile materials 
Heading 87.02 Motor vehicles for the transport of ten or more 
persons, including the driver 
Heading 87.03 Motor cars and other motor vehicles principally 
designed for the transport of persons (other than 
those of heading 87.02), including station wagons and racing cars 
Heading 87.04 Motor vehicles for the transport of goods 
Heading 87.05 Special purpose motor vehicles, other than those 
principally designed for the transport of persons or goods (for example, wagons, service trucks, mobile cranes, fire fighting vehicles, concrete mixers, road sweepers, spraying vehicles, mobile 
workshops, mobile radiological units) 
Heading 87.06 Chassis fitted w ith engines, for the motor 
vehicles of headings 87.01 to 87.05 
Heading 87.07 Bodies (including cabs) for the motor vehicles of 
headings 87.01 to 87.05 
Heading 87.11 Motorcycles (including mopeds) and cycles fitted 
with an auxiliary motor, with or without side-cars 
 
3. Notwithstanding Articles 3.03 and 3.10, Costa Rica may adopt or maintain measures relating 
to the export of logs and squa re-sawn lumber from forests, as established in Law No. 7575 of 
16 April 1996 ("Ley Nº 7575 del 16 de abril de 1996") or any equivalent successor legislation. 
 WT/REG165/1 
Page 20  
 
4. Notwithstanding Articles 3.03 and 3.10, Costa Rica may adopt or maintain measures relating 
to the export of hydrocarbons, as established in La w No. 7399 of 3 May 1994 ("Ley Nº 7399 del 3 de 
mayo de 1994") or any equivalent successor legislation. 
 
Nicaraguan measures 
 
1. Notwithstanding Article 3.10, Nicaragua may adopt  or maintain prohibiti ons or restrictions on 
the export of any basic foodstuff to the territory of  another Party, where such measures are applied 
temporarily to alleviate a critical shortage of that foodstuff. For purposes of this paragraph, 
"temporarily" means up to one year or such  longer period as the Parties may agree. 
 
2. For purposes of paragraph 1, "basic foodstuffs" means:   
beans beef 
bread 
brown sugar cacao cheese chicken coffee 
 cookies 
corn 
corn dough 
corn flour corn tortillas eggs fish liquid milk 
 oat flakes 
powered milk 
rice 
salt vegetable fat vegetable oil wheat flour white sugar 
 
3.  Notwithstanding Article 3.10, Nicaragua may a dopt or maintain prohibiti ons or restrictions on 
imports of the goods in headings 63.09 and 63.10 (clo thing) of the Central American Tariff System. 
 4.  Notwithstanding Article 3.10, Nicaragua may ad opt or maintain restrictions on the import of 
used goods in the following Central Am erican Tariff System classifications. 
 
(Note:  The descriptions are pr ovided for purposes of reference) 
 
Tariff classification Description 
Heading 40.04 Waste, parings and scrap of unvulcanized rubber, 
including powders and granules 
Subheading 4012.10 Retreaded pneumatic tires 
Subheading 4012.20 Used pneumatic tires 
Chapters 61 and 62 Used clothing 
Chapter 64 Used footwear 
Subheading 8414.5 Fans 
Heading 84.15 Air conditioning machines, comprising a motor-
driven fan and elements for changing the 
temperature and humidity 
Heading 84.18 Refrigerators, freezers and other materials, 
machines and apparatus for the production of cold, electric or other 
Heading 84.50 Laundry-type washing machines, including 
machines which both wash and dry 
Heading 84.70 Calculating machines; accounting machines, 
postage-franking machines, ticket-issuing machines and similar machines, incorporating a calculating device; cash registers 
Heading 84.71 Automatic data processing machines and units 
thereof; magnetic or optical readers, machines for 
transcribing data onto data media in coded form  WT/REG165/1 
 Page 21 
 
 
Tariff classification Description 
Heading 85.09 Electromechanical domestic appliances with self-
contained electric motor 
Heading 85.16 Electric water heaters and immersion heaters; 
electric space heating apparatus and floor heating apparatus; electrothermic hairdressing apparatus; electric flatirons; other electronic domestic appliances; electric heating resistors 
Heading 85.19 Turntables, record  players, cassette players and 
other sound reproducing apparatus  
Heading 85.21 Video recording or reproducing apparatus 
Heading 85.27 Reception apparatus for radiotelephony, 
radiotelegraphy or radiobroadcasting 
Heading 85.28 Reception apparatus for television 
Heading 87.02 Motor vehicles for the transport of ten or more 
persons, including the driver 
Heading 87.03 Motor cars and other motor vehicles principally 
designed for the transport of persons (other than those of heading 87.02), including station wagons 
and racing cars 
Heading 87.04 Motor vehicles for the transport of goods 
Heading 87.05 Special purpose motor vehicles, other than those 
principally designed for the transport of persons 
or goods (for example, wagons, service trucks, 
mobile cranes, fire fighting vehicles, concrete mixers, road sweepers, spraying vehicles, mobile workshops, mobile radiological units) 
Heading 87.06 Chassis fitted w ith engines, for the motor 
vehicles of headings 87.01 to 87.05 
Heading 87.07 Bodies (including cabs) for the motor vehicles of 
headings 87.01 to 87.05 
Heading 87.11 Motorcycles (including mopeds) and cycles fitted 
with an auxiliary motor, with or without side-cars 
Heading 90.09 Photocopying apparatus incorporating an optical 
system or of the contact type and thermocopying 
apparatus 
 5. Notwithstanding Article 3.10, Nicaragua may maintain the prohibition on exports of cedar 
and caoba from the natural forest, as established in Decree No. 30/97 of the Office of the President of 
the Republic of 5 June 1997 published in Gazette No. 108 of 10 June 1997 ("Decreto N° 30/97 de la 
Presidencia de la República, 5 de junio de 1997, La Gaceta Nº 108, 10 junio 1997") or any equivalent 
successor legislation. 
 
ANNEX 3.11(1) 
CUSTOMS PROCESSING FEES 
 
1. The prohibition set out in Article 3.11(1) incl udes, in the case of Chile, the fees established in: 
 
(a) Article 190 of Law 16.424 ("Ley N° 16.424");  and  WT/REG165/1 
Page 22  
 
(b) Article 62 of Supreme Decree 172 of the Under-Secretariat of Aviation, Official 
Gazette of 10 April 1974, Regulations on Aeronautic Fees and Taxes ("Decreto Supremo 172 de la Subsecretaría de Aviación, Diario Oficial, 10 abril 1974, Reglamento de Tasas Aeronáuticas e Impuestos"). 
 
2. Notwithstanding Article 3.11( 1), Honduras may continue appl ying until 1 January 2003, the 
fee of 0.5 per cent for customs services established in Decree 85-84 of 31 May 1984 ("Decreto Nº 85-84 del 31 de mayo de 1984") and amendments thereto.  3. Notwithstanding Article 3.11(1) , Nicaragua may continue appl ying until 1 January 2006, the 
fee of 50 centavos of a Central American peso (1 Central American peso is equivalent to US$1) per 
gross tonne or part thereof on permanent impor ts of goods, except non-commercial goods entering by 
post, in accordance with Article 38, Chapter XX, of Law 257 of 4 June 1997, Law on Tax and 
Commercial Justice published in Gazette 106 of 6 Ju ne 1997 ("Ley N° 257 de l 4 de junio de 1997, 
Ley de Justicia Tributaria y Comercia l, La Gaceta N° 106, 6 junio 1997"). 
 
ANNEX 3.11(2) 
CONSULAR FEES 
 
 Notwithstanding Article 3.11(2), Nicaragua may continue applying consular fees until 
1 July 2006, in accordance with the Law on Consul ar Fees, Decree 351, published in Gazette 75 of 
28 March 1980 ("Ley para Aranceles Consulares, Decr eto Nº 351. La Gaceta Nº 75, 28 marzo 1980"), 
as described below:  1. Shipments, legalizations, manifests, etc. 
 
Description         Consular fee charged 
 
(a) Maritime and air shipments and airmail postal packets, CIF value: 
 
 - US$ 50 to 500        US$ 20  - US$ 501 to 1000        US$ 25 
 - US$ 1001 to 10000        US$ 35 
 - US$ 10001 to 100000        US$ 50  - over US$ 10,0000, for each US$ 10,0000 or part thereof  US$ 50 
  The foregoing fee includes forwarder’s bills of lading, commercial invoices and extra copies 
if required. 
  - Regular postal packets valued at over US$ 10,000   US$ 35  (b)  Legalization of sets of documents      US$ 10  
(c) Authentication of the signature of the authority on 
 any kind of document issued in a county     US$ 25  (d) Letter of correction       US$ 15  
(e) Certificates of analysis       US$ 25 
 (f) Certificates of origin        US$ 25  (g) Cargo manifest        US$ 100 
  WT/REG165/1 
 Page 23 
 
 
(h) Additional cargo manifest      US$ 25  (i) Ballast declaration        US$ 50  (j) Passenger list         US$ 25 
 
( k )  C r e w  l i s t          U S $  2 5   (l) List of stores         US$ 25  
(ll) Letter of correction of manifests      US$ 25 
 (m) Certificate covering imports of fi rearms, explosives, etc.   US$ 50 
 (n) Health certificate        US$ 25 
(o) Certificate that a good is freely sold     US$ 25 
 (p) Animal health certificate       US$ 25  (q) Health certificate for animal products     US$ 25  
2.  The following consular fees will be char ged by the Nicaraguan customs authorities for 
approving a set of ballast declarations: 
 
Description        Consular fee applied  
(a) Up to 50 tonnes registered      US$ 15 
 (b) From 51 tonnes to 100 tonnes registered     US$ 10  (c) Over 100 tonnes       US$ 20  
(d) Lack of a consular visa on any manifest, including a 
 vessel that is laden or in ballast not exceeding 50 tonnes  US$ 20 (fine)  (e) lack of a consular visa on any manifest, including a vessel  that is laden or in ballast exceeding 50 tonnes   US$ 100 (fine) 
  
ANNEX 3.14 
EXPORT DUTIES 
 
For Costa Rica 
 
 Article 3.14 shall not apply to Costa Rica for the following goods:  
(a) Bananas, as provided in Law 5515 of 19 Apr il 1974 ("Ley Nº 5515 del 19 de abril de 
1974") and amendments thereto, Law 5519 of  24 April 1974 ("Ley Nº 5519 del 24 de 
abril de 1974") and amendments theret o and Law 4895 of 16 November 1971 ("Ley 
Nº 4895 del 16 de noviembre de 1971") and amendments thereto or under any 
equivalent successor legislation; 
 WT/REG165/1 
Page 24  
 
(b) coffee, as provided in Law 2762 of 21 June 1961 ("Ley Nº 2762 del 21 de junio de 
1961") and amendments thereto and Law 5519 of 24 May 1978 ("Ley Nº 5519 del 24 
de mayo de 1978") and amendments thereto or under any equivalent successor legislation; and  
 
(c)  beef and live cattle, as provided in La w 6247 of 24 May 1978 ("Ley Nº 6247 del 24 
de mayo de 1978") and amendments th ereto and Law 5519 ("Ley Nº 5519") and 
amendments thereto or under any equivalent successor legislation. 
 
For Honduras  
 
 Article 3.14 shall not apply to Honduras for bana nas, with the duty being gradually reduced to 
US$0.04 per 40-pound box, in accordance with Decr ee 131-98 of 20 May 1998 ("Decreto 131-98 del 
20 de mayo de 1998").  
 
ANNEX 3.16 
MEMBERS OF THE COMMITTEE ON TRADE IN GOODS 
 
 The Committee on Trade in Goods established in Article 3.16 shall be composed of: 
 
 (a) For Chile, the Directorate General of  International Economic Relations of the 
Ministry of Foreign Affairs ("Dire cción General de Relaciones Económicas 
Internacionales, Ministerio de Relaciones Exteriores") or its successor; 
 
 (b) for Costa Rica, the Ministry of Foreign Tr ade ("Ministerio de Comercio Exterior") or 
its successor; 
 
 (c) for El Salvador, the Ministry of Econom ic Affairs ("Ministerio de Economía") or its 
successor; 
 
 (d) for Guatemala, the Ministry of Economic  Affairs ("Ministerio de Economía") or its 
successor; 
 
 (e) for Honduras, the Directorate General of  Economic Integration and Trade Policy of 
the Department of Industry and Trade ("Dirección General de Integración Económica 
y Política Comercial, Secretaría de Industr ia y Comercio") or its successor; and 
 
 (f) for Nicaragua, the Ministry of Development, Industry and Trade ("Ministerio de 
Fomento, Industria y Comercio") or its successor. 
 
CHAPTER 4.  RULES OF ORIGIN 
 
Article 4.01 Definitions  
 For the purposes of this Chapter: 
 
 CIF means the value of imported goods, including the cost of insurance and freight, at the 
port or point of introduction into the importing country; 
 
 F.O.B . means free on board, regardless of the mode of transportation, at the port or point of 
shipment abroad;   WT/REG165/1 
 Page 25 
 
 
 fungible goods means goods that are interchangeable  for commercial purposes and whose 
properties are essentially identical, which cannot be di fferentiated by a simple visual examination; 
  Generally accepted accounting principles  means the principles used in the territory of each 
Party that confer substantial authoritative support w ith respect to the recording of revenues, expenses, 
costs, assets and liabilities, relating to informati on and preparation of financial statements. These 
standards may be broad guidelines of general application as well as detailed standards, practices and 
procedures;  
 goods wholly obtained or produced entirely in the territory of one or more Parties 
means:  
 
 (a) Mineral goods extracted in the territory of one or more Parties; 
 
 (b) vegetable goods harvested in the territory of one or more Parties; 
 
 (c) live animals born and raised in th e territory of one or more Parties; 
 
 (d) goods obtained from hunting or fishing in the territory of one or more Parties; 
 
 (e) fish, shellfish and other marine life take n from the sea outside the territorial waters 
and maritime zones where the Parties exercise jurisdiction by vessels registered or 
recorded with a Party and flying its flag or vessels leased by companies established in 
the territory of a Party; 
 
 (f) goods produced on board factory ships from the goods referred to in 
subparagraph (e), provided such factory ship s are registered or recorded with that 
Party and fly its flag or on factory ship s leased by companies established in the 
territory of a Party; 
 
 (g) goods taken by a Party or a person of a Party from the seabed or marine subsoil 
outside territorial waters, provided that a Party has rights to exploit such seabed or 
marine subsoil; 
 
 (h) waste and scrap derived from: 
 
  (i) Production in the territory of one or more Parties;  or  
 
  (ii) used goods collected in the territory of one or more Parties, provided such 
goods are fit only for the recovery of raw materials;  or 
 
  (iii) goods produced in the territory of  one or more Parties exclusively from goods 
referred to in subparagraphs  (a) through (h), or from their derivatives, at any 
stage of production; 
 
 indirect material  means a good used in the production, testing or inspection of another good 
but not physically incorporated into it, or a good u sed in the maintenance of buildings or the operation 
of equipment associated with the production of a good, including: 
 
 (a) Fuel, energy, catalysts and solvents; 
 
 (b) equipment, devices, and supplies u sed for testing or inspecting the goods; 
 
 (c) gloves, glasses, footwear, clothing, safety equipment and supplies; WT/REG165/1 
Page 26  
 
 
 (d) tools, dies and moulds; 
 
 (e) spare parts and materials used in the maintenance of equipment and buildings; 
 
 (f) lubricants, greases, compounding materials and other materials used in production or 
to operate equipment and buildings; and 
 
 (g) any other goods or products that are not incorporated into the good but whose use in 
the production of the good can reasonably be  demonstrated to be a part of that 
production; 
  material  means a good that is used in the production or processing of another good and 
includes components, inputs, raw materials, parts and pieces;  
 producer  means a person who grows, mines, harvests, raises, fishes, hunts, manufactures, 
processes or assembles a good;   production  means growing, mining, harvesting, bi rthing and raising, fishing, hunting, 
manufacturing, processing or assembling a good;  
 transaction value  of a good means the price actually paid or payable for a good with respect 
to a transaction of the producer of the good, adjust ed in accordance with the principles of Article 1 
and paragraphs 1, 3 and 4 of Artic le 8 of the Customs Valuation Agreement, regardless of whether the 
good is sold for export. For the purposes of this de finition, the vendor referred to in the Customs 
Valuation Agreement shall be the producer of the good; 
 
 transaction value of a material  means the price actually paid or payable for a material with 
respect to a transaction of the producer of the good , adjusted in accordance with the principles of 
Article 1 and paragraphs 1, 3 and 4 of Article 8 of the Customs Valuation Agreement, regardless of 
whether the material is sold for export. For the pur poses of this definition, the vendor referred to in 
the Customs Valuation Agreement shall be the supplier of the material and the buyer referred to in the 
Customs Valuation Agreement shall be the producer of the good; and 
  value  means the value of a good or material de termined in accordance with the Customs 
Valuation Agreement.  Article 4.02 Instruments of application and interpretation 
 
1. For the purposes of this Chapter: 
 
 (a) The basis for tariff classification of goods is the Harmonized System;  and 
 
 (b) the value of a good or material shall be determined on the basis of the principles of 
the Customs Valuation Agreement. 
 2. In applying the Customs Valuation Agreement unde r this Chapter to determine the origin of a 
good: 
 
 (a) The principles of the Customs Valua tion Agreement shall apply to domestic 
transactions, with such modifications as may be required by the circumstances, as 
would apply to international transactions;  and 
  WT/REG165/1 
 Page 27 
 
 
 (b) the provisions of this Chapter shall take precedence over the Customs Valuation 
Agreement to the extent of any difference. 
 3. A Party may only accumulate origin with orig inating goods from countries in which this 
Agreement has come into force. 
 
4. In cases where there is no specific rule of origin common to all the Parties for a good, the 
rules of origin of this Chapter shall apply only between the exporting Party and the importing Party, 
considering the other Parties that do not have that specific common rule of origin as non-Party countries. 
 
5. Two years after this Agreement comes into fo rce for all the Parties, they shall establish a 
programme of work to examine the possibility that materials of Chilean origin can be accumulated for 
the purpose of complying with the rules of origin in effect among the Central American countries. 
This shall apply provided the end good into which the materials are incorporated is subject to free 
trade between Chile and each Central Am erican country and among the latter. 
 6. Notwithstanding paragraph 5, if the Central American countries accord the treatment referred 
to in Article 4.02(5) to a non-Part y country before they accord it to Chile, they shall accord treatment 
no less favourable to goods of Chilean origin. 
 
Article 4.03 Originating goods  
1. Except as otherwise provided in this Chapter, a good shall be considered originating where: 
 
 (a) The good is wholly obtained or produced en tirely in the territory of one or more of 
the Parties; 
 
 (b) the good is produced entirely in the territory  of one or more of the Parties exclusively 
from originating materials as defined in this Chapter; 
 
 (c) the good is produced in the territory of one or more of the Parties from non-
originating materials that undergo a change  in tariff classification, comply with a 
regional value content or meet other require ments, as set out in Annex 4.03, and the 
good satisfies all other applicable provisions of this Chapter;  or 
 
 (d) the good is produced in the territory of one or more of the Parties but one or more of 
the non-originating materials that are used in the production of the good do not 
undergo a change in tariff classification because: 
 
(i) The good was imported into the territory of a Party in an unassembled or a 
disassembled form but was classified as an assembled good pursuant to Rule 2(a) of the General Rules of In terpretation of the Harmonized System; 
 
(ii) the heading for the good provides fo r and specifically describes both the good 
itself and its parts, provided the heading is not divided into subheadings;  or 
 (iii) the subheading provides for and specifi cally describes the good and its parts; 
 
provided that the regional value content of  the good, determined in accordance with 
Article 4.07, is not less than 30 per cen t and the good satisfies all other applicable 
requirements of this Chapter, unless the appli cable rule of Annex 4.03 under which it is 
classified specifies a different regional value content requirement, in which case that WT/REG165/1 
Page 28  
 
requirement is to be applied. The provisions of this subparagraph do not apply to the goods 
included in Chapters 61 to 63 of the Harmonized System.  
2. If a Party complies with the specific rule of origin established in Annex 4.03, it shall not be required to comply as well with the regional value content established in paragraph 1(d). 
 
3. For the purposes of this Chapter, a good produced from non-originating materials that 
undergo a change in tariff classification and satisfy th e other requirements set out in Article 4.03 shall 
have been produced entirely in the territory of one or  more of the Parties and the entire regional value 
content of the good shall be met in the te rritory of one or more of the Parties. 
 
4.  Notwithstanding this Article, goods shall not be considered originating despite complying 
with the requirement of a change in tariff clas sification of their materials, where the goods are 
exclusively the result of the operations established in  Article 4.04 performed in the territory of the 
Parties through which they acquire the final form in  which they will be sold, where such operations 
have used non-originating materials, unless the specifi c rule of origin of Annex 4.03 states otherwise. 
 
Article 4.04 Minimum operations or processes 
 
 The minimum operations or processes which in themselves or in combination do not confer 
origin on a good are: 
 
 (a) Airing, ventilating, dr ying, refrigeration, freezing; 
 
 (b) cleaning, washing, sifting, screening, selection, classification or grading, thinning; 
 
 (c) peeling, husking, shelling, boning, squeezing, macerating; 
 
 (d) dusting, removal of damaged parts, o iling, painting to prevent rust or provide 
protective covering; 
 
 (e) testing or calibrating, division of bulk sh ipments, grouping into packets, application 
of marks, labels or distinguishing signs on products or their packages; 
 
 (f) packing, unpacking or repacking; 
 
 (g) dilution with water or another a queous solution, ionization and salting; 
 
 (h) the simple collection or assembly of pa rts to form a complete good, make a set or 
assortment;  and 
 
 (i) slaughtering animals. 
 
Article 4.05 Indirect materials 
 
 An indirect material shall be considered to be  an originating material without regard to where 
it is prepared or produced and the value of such material shall be the cost reported in the accounting 
records of the producer of the good.  Article 4.06 Accumulation 
 
1. Materials or goods originating in the territory of a Party incorporated into a good in the territory of another Party shall be considered or iginating in the territory of the latter Party. 
  WT/REG165/1 
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2. For the purposes of determining whether a good is an originating good, the producer of a 
good may choose to accumulate own production with that of one or more producers in the territory of one or more Parties of materials that are incorpor ated into that good, so that the production of the 
materials is considered to have been performed by that producer, provided the good complies with the 
requirements of Article 4.03.  Article 4.07  Regional value content 
 
1.  The regional value content of goods shall be calculated on the basis of the following formula: 
 
RVC = [(TV - VNM) / TV] * 100  
  where: 
 
RVC   is the regional value content, expressed as a percentage; 
TV  is the transaction value of the good adjusted to a F.O.B.  basis, except as 
provided in paragraph 2. In the even t there is no transaction value or one 
cannot be determined under Article 1 of  the Customs Valuation Agreement, 
the value shall be determined in accord ance with Articles 2 through 7 of that 
Agreement; and 
VNM  is the transaction value of non-originat ing materials adjusted  to a CIF basis, 
except as provided in paragraph 5. In the event there is no transaction value 
or one cannot be determined under Ar ticle 1 of the Customs Valuation 
Agreement, the value shall be dete rmined in accordance with Articles 2 
through 7 of that Agreement. 
 
2.  Where the producer of the good does not export it directly, the transaction value shall be 
adjusted to the point at which the purchaser receiv es the good within the territory where the producer 
is located.  
3.  Where origin is determined on the basis of  the regional value content method, the required 
percentage shall be specified in Annex 4.03.  4.  All the costs considered in calculating the regional value content shall be recorded and 
maintained in accordance with the Generally Accepted Accounting Principles applicable in the 
territory of the Party in which the good is produced. 
 5.  Where the producer of a good buys a non-originat ing material in the territory of the Party 
where the producer is located, the value of the no n-originating material shall not include freight, 
insurance, packing or any other cost incurred in transporting the material from the warehouse of the 
supplier to the location of the producer. 
 
6.  To calculate the regional value content, the value of the non-originating materials used in the 
production of a good shall not include the value of the non-originating materials used in the production of an originating material bought and used in the production of that good. 
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Article 4.08  De minimis 
 
1. A good that does not undergo a change in ta riff classification as established in Annex 4.03 
shall be considered to be an originating good if th e value of all non-originating materials used in the 
production of the good that do not undergo a change in tariff classification is not more than eight per 
cent of the value of the good calcu lated on the basis of Article 4.07. 
 2.  For goods classified in Chapters 50 to 63 of the Harmonized System, the percentage 
established in paragraph 1 refers to  the weight of the fibres and yarns compared to the weight of the 
good produced. 
 
3.  Paragraph 1 does not apply to a non-origin ating material used in the production of a good 
provided for in Chapters 1 to 27 of the Harmoni zed System unless the non-originating material is 
provided for in a different subheading than the good  for which origin is being determined under this 
Article.  Article 4.09  Fungible goods 
 
1.  Where originating and non-originating fungible goods are used in the preparation or production of a good, the origin of that good may be determined by applying one of the following inventory-management methods, at the choice of the producer:  
 
 (a) First-in-first-out (FIFO); 
 (b) last-in-first-out (LIFO);  or  
(c) method of averages. 
 2.  Where originating and non-originating fungible goods are physically commingled in the inventory and do not undergo any pr oductive process or any other operation in the territory of the 
Party in which they were physically commingled, other than unloading, reloading or any other movement necessary to maintain the goods in good c ondition or ship them to the territory of another 
Party, the origin of the good may be determined on the basis of one of the inventory management 
methods.  3.  Once one of the inventory management methods  has been selected, it shall be used during the 
entire fiscal year or period.  Article 4.10  Sets and assortments of goods  
1. Sets and assortments of goods classified as provided in Rule 3 of the General Rules of 
Interpretation of the Harmonized System and goods whose description under the nomenclature of the Harmonized System is specifically that of a set or assortment shall qualify as originating, provided 
that each of the goods in the set or assortment complies with the rul es of origin established in this 
Chapter and in Annex 4.03.  2. Notwithstanding paragraph 1, a set or assortment  of goods shall be considered originating if 
the value of all the non-originating goods used to  form the set or assortment does not exceed the 
percentage established in Article 4.08(1) of the valu e of the set or assortment, adjusted on the basis of 
Article 4.07 (1) or (2), as applicable.  3. The provisions of this Article shall take precedence over the specific rules established in 
Annex 4.03.   WT/REG165/1 
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Article 4.11  Accessories, spare parts and tools 
 
1. Accessories, spare parts or tools delivered with the good and which form a standard part of the good shall be disregarded in determining whethe r all the non-originating materials used in the 
production of the good undergo the applicable change  in tariff classification set out in Annex 4.03, 
provided that: 
 
(a) The accessories, spare parts or tools are not invoiced separately from the good, 
regardless of whether they are listed separately in the invoice; and 
 
(b) the quantities and value of the accessories, spare parts or tools are customary for the 
good to be classified. 
 2. If the good is subject to a regional value cont ent requirement, the valu e of the accessories, 
spare parts or tools shall be taken into account as or iginating or non-originating materials, as the case 
may be, in calculating the regional value content of the good. 
 3. The rule of origin corresponding to each of them separately shall be applied to accessories, 
spare parts and tools that do not comply with the foregoing conditions. 
 
Article 4.12  Packaging materials and contain ers in which a good is packaged for retail sale 
 
1. Packaging materials and containers in whic h a good is packaged for retail sale shall, if 
classified with the good in the Harmonized System, be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff 
classification set out in Annex 4.03. 
 
2. If the good is subject to a regional value cont ent requirement, the valu e of such packaging 
materials and containers shall be taken into account  as originating or non-originating materials, as the 
case may be, in calculating the regional value content of the good. 
 
Article 4.13  Packing materials and containers for shipment 
 
 Packing materials and containers in which a good is packed for shipment shall be disregarded 
in determining whether:   (a) The non-originating materials used in the production of the good undergo an 
applicable change in tariff classifi cation set out in Annex 4.03;  and 
 (b) the good satisfies a regional value content requirement. 
 
Article 4.14  Direct transhipment and shipment and international transit 
 1.  A good shall not lose its originating status wh en exported from one Party to another Party and 
in transit through the territory of any Party or non-Party, provided: 
 
 (a) The transit is justified for geographi cal reasons or considerations related to 
international transport requirements; 
 
 (b) it is not destined for trade or use in the country or countries of transit; 
 
 (c) it does not undergo, during its transpor t or storage, any operation other than 
packaging, packing, repacking, loading, unloading or handling to ensure its 
conservation;  and WT/REG165/1 
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 (d) it remains under the control or supervision of the customs authority in the territory of 
the Party or non-Party. 
 2.  Otherwise, the good shall lose its originating status. 
 
ANNEX 4.03 
SPECIFIC RULES OF ORIGIN 
 
Section A – General Interpretative Note 
 
1.  A requirement of a change in tariff classi fication is applicable only to non-originating 
materials.  2.  Where a specific rule of origin is defined on the basis of a change in tariff classification and 
in its wording exceptions are made for classifications  on the chapter, heading or subheading level in 
the Harmonized System, it shall be interpreted that the materials in those tariff classifications must be originating for the good to qualify as originating.  3.  The excepted materials separated by comma s and with the disjunction ("or"), must be 
originating for the good to qualify as originating, even  in the event that one or more of the materials 
covered by the exception is used in its production. 
  WT/REG165/1 
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Section B – Specific Rules of Origin Applicable Between Chile and Costa Rica, 
El Salvador, Guatemala, Honduras and Nicaragua 
 Section I.  Live Animals and Animal Products  
Chapter 01   Live animals 
01.01 – 01.05   The animals in this heading shall originate in the country of birth and rearing; 
   or a change to heading 01.01 through 01.05 from any other chapter. 
01.06    The animals in this heading sha ll originate in the country of birth and/or 
Rearing or capture; or a change to heading 01.06 from any other chapter. 
 
Chapter 02   Meat and edible offal 
02.01 – 02.10   The products in this heading shall originate in the country of birth and 
   rearing of the animal. 
 Chapter 03   Fish and crustaceans, mo lluscs and other aquatic invertebrates  
03.01 – 03.04   A change to heading 03.01 through 03.04 from any other chapter, 
   with the import of fry permitted. 
03.06 – 03.07   The products in this headin g shall originate in the country where the 
   crustacean, mollusc or other aquatic invertebrate was caught or from the  
   raising of larvae; or a change to heading 03.06 through 03.07 from any other  
   chapter, with the import of larvae and fry permitted. 
 
Chapter 04   Milk and dairy produce;  birds’  eggs;  natural honey;  edible products 
   of animal origin, not elsewhere specified or included 
04.01 – 04.02   The products in this heading sh all originate in the country where the milk 
   was obtained in natural or unprocessed state; or a change to heading 04.01  
   through 04.02, from any other chapter except subheading 1901.90. 
04.07 – 04.10   The products in this heading shall originate in the country where the  
   eggs, natural or unprocessed honey and other products of animal origin not  
   elsewhere specified or included were obtained; or a change to heading 04.07 
   through 04.10 from any other chapter. 
 
Chapter 05   Products of animal origin, not elsewhere specified or included  
05.01 – 05.11   A change to heading 05.01 through 05.11 from any other chapter. 
 
Section II.  Vegetable Products 
 Note to Section II:  Plant products (vegetables, fruit, forest products, etc.) grown in the territory 
of a Party shall be treated as originating in that Party even if they have been 
grown from seeds, bulbs, cuttings, grafts, buds or other living parts of plants 
imported from a Party or non-Party. 
 
Chapter 06   Live plants and floriculture products 
06.01 – 06.04   The products in this heading sha ll originate in the country where they were  
   grown or reproduced; or a change to heading 06.01 through 06.04 from 
   any other chapter. 
 
Chapter 07   Edible vegetables, plants, roots and tubers  
07.01 – 07.14   The products in this heading sha ll originate in the country where they were  
   grown in their natural or unprocessed state; or a change to heading 07.01  
   from any other chapter. 
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Chapter 08   Edible fruit and nuts;  peel of citrus fruit or melons 
08.01 – 08.14   The products in this heading sha ll originate in the country where they were  
   grown; or a change to heading 08.01 though 08.14 from any other chapter. 
 
Chapter 09   Coffee, tea, maté and spices 
09.01    The products in this heading sha ll originate in the country where the plant  
   was grown and where the product was obtained; or a change to heading 09.01 
   from any other chapter. 
09.02    No change in tariff classifica tion is required provided the regional value  
   content is not less than 30%. 
09.03    The products in this heading sha ll originate in the country where the plant  
   was grown and where the product was obtained; or a change to heading 09.03 
   from any other chapter. 
0904.20   The products in this subheading shall originate in the country where the  
   plant was grown and where the product was obtained; or a change to  
   subheading 0904.20 from any other chapter, except subheading 0709.60. 
09.05    The products in this heading sha ll originate in the country where the plant 
   was grown and where the product was obtained; or a change to heading 09.05 
   from any other chapter. 
09.07 – 09.09   The products in this heading sh all originate in the country where the plant 
   was grown and where the product was obtained; or a change to heading 09.07 
   through 09.09 from any other chapter. 
 
Chapter 10   Cereals 
10.01 – 10.08   The products in this heading sha ll originate in the country where they were  
   grown; or a change to heading 10.01 through 10.08 from any other chapter. 
 
Chapter 11   Products of the milling industry;  malt; starches; inulin; wheat gluten 
11.01 – 11.03   A change to heading 11.01 through 11.03 from any other chapter. 
1108.11   A change to subheading 1108.11 from any other heading. 
1108.19 – 1108.20  A change to subheading 1108.19 through 1108.20 from any other heading. 
 Chapter 12   Oil seeds and oleaginous fruits;  miscellaneous seeds and fruit;  
   industrial or medicinal plants;  straw and fodder  
12.01 – 12.07   The products in this heading sha ll originate in the country where they were  
grown; or a change to heading 12.01 through 12.07 from any other chapter. 
12.09 – 12.14   The products in this heading sha ll originate in the country where they were  
   grown; or a change to heading 12.09 through 12.14 from any other chapter. 
 
Chapter 13   Gums, resins and other vegetable saps and extracts  
13.01 – 13.02   The products in this heading shall originate in the country where they 
   were obtained by extraction, exudation or incision; or a change to heading  
   13.01 through 13.02 from any other chapter. 
 
Chapter 14   Vegetable plaiting materials;  vegetable products not elsewhere  
   specified or included  
14.01 – 14.04   The products in this heading sh all originate in the country where they were  
   grown; or a change to heading 14.01 through 14.04 from any other chapter. 
  WT/REG165/1 
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Section IV.  Prepared Foodstuffs; Beverages, Sp irits and Vinegar; Tobacco and Manufactured 
Tobacco Substitutes   
Chapter 16   Preparations of meat, of fish or of crustaceans, molluscs or other  
   aquatic invertebrates 
16.03 – 16.05   A change to heading 16.03 through 16.05 from any other chapter. 
 Chapter 17   Sugars and sugar confectionery 
17.01 – 17.03   A change to heading 17.01 through 17.03 from any other chapter. 
 
Chapter 18   Cocoa and cocoa preparations 
18.01 – 18.02   The products in this heading sha ll originate in the country where they were  
   grown; or a change to heading 18.01 a 18.02 from any other chapter. 
 
Chapter 21   Miscellaneous edible preparations  
2101.20 – 2101.30  A change to subheading 2101.20 through 2101.30 from any other heading. 
2102.20 – 2103.20  A change to subheading 2102.20 through 2103.20 from any other heading. 
2103.90   A change to subheading 2103.90 from any other heading. 
21.04    A change to heading 21.04 from any other heading. 
 Chapter 22   Beverages, spirits and vinegar 
22.01    The products in this heading sha ll originate in the country where water, ice 
   and snow are obtained in a natural state; or a change to heading 22.01 from 
   any other chapter. 
22.03 – 22.06   A change to heading 22.03 through 22.06 from any other chapter. 
 
Chapter 24   Tobacco and manufactured tobacco substitutes  
24.01   A change to heading 24.01 from any other chapter. 
 
Section V. Mineral Products   
Chapter 25   Salt;  sulphur;  earths and st one;  plastering materials, lime and cement 
25.01 – 25.30   A change to heading 25.01 through 25.30 from any other chapter. 
 
Chapter 26   Ores, slag and ash  
26.01 – 26.21   A change to heading 26.01 through 26.21 from any other heading. 
 
Chapter 27   Mineral fuels, mineral oils and products of their distillation;  
   bituminous substances;  mineral waxes 
Note to heading 27.15 For heading 27.15, the deliberate and proportionately controlled mixture of 
materials (other than simple dilution with water) following pre-determined 
specifications that result in a product that possesses physical or chemical 
characteristics that are relevant for a different purpose or use than the initial 
materials, is considered to have undergone a substantial transformation.  
27.01 – 27.09   A change to heading 27.01 through 27.09 from any other chapter. 
27.10 – 27.15   A change to heading 27.10 through 27.15 from any other heading. 
27.16   This product originates in the country  where the electric power is generated; 
   or a change to heading 27.16 from any other heading. 
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Section VI.   Products of the chemical or allied industries 
 Notes to Section VI:  
1. Chemical reaction :  a "chemical reaction" is a process (including biochemical processes) that 
produces a molecule with a new structure through the breakdown of intra-molecular links and the 
formation of new ones or through the alteration of th e spatial distribution of the atoms of a molecule. 
The following operations are not considered to be  chemical reactions for the purposes of the present 
definition:  
 (a) Dilution in water or other solvents; 
  (b) the removal of solvents, including dissolved water; and   (c) the addition or removal of crystallization water. 
 
2. Purification :  the purification brought about by removing 80 per cent of the impurity content 
or the reduction or elimination that produces a chemical with a minimum degree of purity to make the product suitable for uses such as:   (a) Pharmaceutical substances or food produc ts that comply with national standards or 
the international pharmacopoeia; 
  (b) reagents for chemical analysis or for laboratory use;   (c) elements and components for use in microelectronics; 
 
 (d) different optical applications;  and   (e) human or veterinary use. 
 
Chapter 28   Inorganic chemicals;  organic or inorganic compounds of precious  
   metals, of radioactive elements, of  rare-earth metals or of isotopes  
Notes to Chapter 28: 1. Standard solution:  "standard solutions" are preparations apt for 
analytical use, testing or reference, with degrees of purity or proportions 
guaranteed by the manufacturer. The preparation of standard solutions confers origin. 2. Separation of isomers: the isola tion or separation of isomers from a 
mixture of isomers confers origin. 
2801.10 – 2851.00  A change to subheading 2801.10 through 2851.00 from any other 
   subheading. 
 
Chapter 29   Organic chemicals 
Notes to Chapter 29: 1. Standard solution:  "standard solutions" are preparations apt for 
analytical use, testing or reference, with degrees of purity or proportions guaranteed by the manufacturer. 
The preparation of standard solutions confers origin. 
2. Separation of isomers: the isola tion or separation of isomers from a 
mixture of isomers confers origin. 
2901.10 – 2942.00  A change to subheading 2901.10 through 2942.00 from any other 
   subheading. 
  WT/REG165/1 
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Chapter 31   Fertilizers 
31.01    A change to heading 31.01 from any other heading. 
 
Chapter 32   Tanning or dyeing extracts;  tannins and their derivatives; 
   pigments and other colouring matter;  paints and varnishes;  putty;  
   i n k s   
Notes to Chapter 32: 1. Standard solution:  "standard solutions" are preparations apt for 
analytical use, testing or reference, with degrees of purity or proportions guaranteed by the manufacturer. The preparation of standard solutions confers origin. 2. Separation of isomers: the isola tion or separation of isomers from a 
mixture of isomers confers origin. 
32.03    A change to heading 32.03 from any other heading. 
32.05    A change to heading 32.05 from any other heading. 
32.11    A change to heading 32.11 from any other heading. 
3213.90   A change to subheading 3213.90 from any other heading. 
32.15    A change to heading 32.15 from any other heading. 
 
Chapter 33   Essential oils and resinoids;  perfumery, cosmetic or toilet  
   preparations  
Notes to Chapter 33: Separation of isomers:  the isolation or separation of isomers 
   from a mixture of isomers confers origin. 
33.03 – 33.07   A change to heading 33.03 through 33.07 from any other heading. 
 
Chapter 34 Soap, organic surface-active age nts, washing preparations, lubricating 
preparations, artificial waxes, prepared waxes, polishing or scouring 
preparations, candles and similar ar ticles, modelling pastes, "dental 
waxes" and dental preparations with a basis of plaster  
34.01 A change to heading 34.01 from any other heading. 
34.03-34.07 A change to heading 34.03 through 34.07 from any other heading. 
 
 
Chapter 35   Albuminoidal substances;  modified starches;  glues;  enzymes  
35.01 – 35.07   A change to heading 35.01 through 35.07 from any other heading. 
 
Chapter 36  Explosives; pyrotechnic pr oducts; matches; pyrophoric alloys; 
combustible materials 
36.01 – 36.06   A change to heading 36.01 through 36.06 from any other heading. 
 
Chapter 37   Photographic or cinematographic goods  
37.01 – 37.07   A change to heading 37.01 through 37.07 from any other heading. 
 
Chapter 38   Miscellaneous chemical products  
38.01 – 38.23   A change to heading 38.01 through 38.23 from any other heading. 
3824.10 – 3824.90  A change to subheading 3824.10 through 3824.90 from any other 
   subheading. 
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Section VII.  Plastics and Articles Thereof; Rubber and Articles Thereof 
 
Chapter 40   Rubber and articles thereof 
40.01    The products in this headin g shall originate in the country where 
   they are obtained in their natural state. 
40.02 – 40.06   A change to heading 40.02 through 40.06 from any other heading. 
 
Section VIII.  Raw Hides and Skins, Leather, Furskins and Articles Thereof; Saddlery and Harness; Travel Goods, Handbags and Similar Containers; Articles of Animal Gut  
Chapter 41   Raw hides and skins (other than furskins) and leather 
41.01 – 41.03   A change to heading 41.01 through 41.03 from any other chapter. 
41.04 – 41.07   A change to heading 41.04 through 41.07 from any other heading, including  
   a change from wet blue hides and skins to tanned hides and skins. 
 Chapter 42   Articles of leather; saddlery and harness; travel goods, handbags and 
   similar containers; articles of animal gut 
42.01 – 42.06   A change to heading 42.01 through 42.06 from any other heading, provided  
   the products are cut to shape or fully assembled in one of the Parties 
 
Chapter 43   Furskins and artificial fur;  manufactures thereof 
43.01 – 43.04   A change to heading 43.01 through 43.04 from any other heading. 
 
Section IX.  Wood and Articles of Wood; Wood Charcoal; Cork and Articles of Cork; 
Manufactures of Esparto or Basketware 
 
Chapter 45   Cork and articles of cork 
45.01 – 45.04   A change to heading 45.01 through 45.04 from any other heading. 
 Chapter 46   Manufactures of esparto or basketware 
46.01 – 46.02   A change to heading 46.01 through 46.02 from any other heading. 
 
Section X.  Pulp of Wood or of other Fibrous Cellulosic Material; Paper or Paperboard for Recycling (Waste and Scrap); Paper and Paperboard and Articles Thereof  
 
Chapter 47   Pulp of wood or of other fibrous cellulosic material; paper or  
   paperboard for recycling (waste and scrap) 
47.01 – 47.07   A change to heading 47.01 through 47.07 from any other heading. 
 
Chapter 48   Paper and paperboard; articles of paper pulp, of paper or of   
   paperboard 
48.01 – 48.09   A change to heading 48.01 through 48.09 from any other heading. 
48.12 – 48.15   A change to heading 48.12 through 48.15 from any other heading. 
48.16    A change to heading 48.16 from any other heading, except from 
   heading 48.09. 
48.17    A change to heading 48.17 from any other heading. 
4818.10 – 4818.30  A change to subheading 4818.10 through 4818.30 from any other heading, 
   except from heading 48.03. 
4818.40 – 4818.90  A change to subheading 4818.40 through 4818.90 from any other heading. 
48.19    A change to heading 48.19 from any other heading. 
4820.10 – 4820.30  A change to subheading 4820.10 through 4820.30 from any other heading.  WT/REG165/1 
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Chapter 48   Paper and paperboard; articles of paper pulp, of paper or of   
   paperboard 
4820.40   A change to subheading 4820.40 from any other heading, except from  
   subheading 4811.90. 
4820.50 – 4823.40  A change to subheading 4820.50 through 4823.40 from any other heading. 
4823.51   A change to subheading 4823.51 from any other heading, except from 
   subheading 4811.90. 
4823.59 – 4823.90  A change to subheading 4823.59 through 4823.90 from any other heading. 
 
Chapter 49   Printed books, newspapers, pictures and other products of the printing 
   industry; manuscripts, typescripts and plans 
49.01 – 49.11   A change to heading 49.01 through 49.11 from any other chapter. 
 
Section XI.  Textiles and Textile Articles   
Chapter 50   Silk 
50.01 – 50.03   A change to heading 50.01 through 50.03 from any other heading. 
50.07    A change to heading 50.07 from any other heading. 
 
Chapter 51   Wool, Fine or Coarse Animal Hair; Horsehair Yarn and Woven Fabric 
51.01 – 51.05   A change to heading 51.01 through 51.05 from any other heading. 
 Chapter 52   Cotton 
52.01 – 52.03   A change to heading 52.01 through 52.03 from any other heading. 
 
Chapter 53   Other vegetable textile fibres; paper yarn and woven fabrics of  
   p a p e r  y a r n   
53.01 – 53.08   A change to heading 53.01 through 53.08 from any other heading. 
 
Chapter 55   Man-made staple fibres   
55.01 – 55.07   A change to heading 55.01 through 55.07 from any other heading. 
55.09 – 55.10   A change to heading 55.09 through 55.10 from any other heading. 
 
Section XII. Footwear, Hats and Other Headgear , Umbrellas, Sun Umbrellas, Walking-Sticks, 
Seat-Sticks, Whips, Riding-Crops and Parts Thereof; Prepared Feathers and Articles Made 
Therewith; Artificial Flowers; Articles of Human Hair 
 
Chapter 65   Hats and other headgear and parts thereof  
65.01 – 65.07   A change to heading 65.01 through 65.07 from any other heading. 
 Chapter 66   Umbrellas, sun umbrellas, wa lking-sticks, seat-sticks, whips, riding- 
   crops and parts thereof 
66.01 – 66.03   A change to heading 66.01 through 66.03 from any other heading. 
 
Chapter 67   Prepared feathers and down and articles made of feathers or of down; 
   artificial flowers; articles of human hair 
67.01 – 67.04   A change to heading 67.01 through 67.04 from any other heading. 
 WT/REG165/1 
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Section XIII. Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials; Ceramic 
Products; Glass and Glassware   
Chapter 68   Articles of stone, plaster, cement, asbestos, mica or similar materials  
68.01 – 68.11   A change to heading 68.01 through 68.11 from any other chapter. 
6812.10   A change to subheading 6812.10 from any other heading. 
6812.20 – 6812.90  A change to subheading 6812.20 through 6812.90 from any other 
   subheading. 
68.13 – 68.15   A change to heading 68.13 through 68.15 from any other heading. 
 
Chapter 69   Ceramic products 
69.01 – 69.14   A change to heading 69.01 through 69.14 from any other heading. 
 
Chapter 70   Glass and glassware 
70.01 – 70.18   A change to heading 70.01 through 70.18 from any other heading. 
70.19   A change to heading 70.19 from any other subheading. 
70.20   A change to heading 70.20 from any other heading. 
 
Section XIV.  Natural or Cultured Pearls, Precious  or Semi-precious Stones, Precious Metals, 
Metals Clad with Precious Metal, and Articles Thereof; Imitation Jewellery; Coin   
Chapter 71   Natural or cultured pearls, precious or semi-precious stones, precious  
   metals, metals clad with precious metal, and articles thereof;  
   imitation jewellery; coin  
71.01 – 71.18   A change to heading 71.01 through 71.18 from any other heading.  
 
Section XV.  Base Metals and Articles of Base Metal  
Chapter 72   Iron and steel 
72.01 – 72.07   A change to heading 72.01 through 72.07 from any other heading. 
72.10 – 72.11   A change to heading 72.10 through 72.11 from any other heading. 
72.16    A change to heading 72.16 from any other heading. 
7217.10   A change to subheading 7217.10 from any other heading. 
72.18 – 72.29   A change to heading 72.18 through 72.29 from any other heading. 
 Chapter 73   Articles of iron and steel  
73.01 – 73.06   A change to heading 73.01 through 73.06 from any other chapter. 
73.07    A change to heading 73.07 from any other heading. 
73.09 – 73.14   A change to heading 73.09 through 73.14 from any other heading. 
73.16 – 73.20   A change to heading 73.16 through 73.20 from any other heading. 
73.22 – 73.23   A change to heading 73.22 through 73.23 from any other heading. 
73.25 – 73.26   A change to heading 73.25 through 73.26 from any other heading. 
 Chapter 74   Copper and articles thereof 
74.01 – 74.19   A change to heading 74.01 through 74.19 from any other heading. 
 
Chapter 75   Nickel and articles thereof  
75.01 – 75.08   A change to heading 75.01 through 75.08 from any other heading. 
 
Chapter 76   Aluminium and articles thereof 
76.01 – 76.06   A change to heading 76.01 through 76.06 from any other heading. 
76.08 – 76.09   A change to heading 76.08 through 76.09 from any other heading.  WT/REG165/1 
 Page 41 
 
 
Chapter 76   Aluminium and articles thereof 
76.11 – 76.16   A change to heading 76.11 through 76.16 from any other heading. 
 
Chapter 78   Lead and articles thereof 
78.01 – 78.05   A change to heading 78.01 through 78.05 from any other heading. 
 Chapter 79   Zinc and articles thereof 
79.01 – 79.03   A change to heading 79.01 through 79.03 from any other heading. 
79.05 – 79.06   A change to heading 79.05 through 79.06 from any other heading. 
 Chapter 80   Tin and articles thereof 
80.01 – 80.02   A change to heading 80.01 through 80.02 from any other heading. 
80.04 – 80.07   A change to heading 80.04 through 80.07 from any other heading. 
 Chapter 81   Other base metals;  cermets;  articles thereof  
8101.10 – 8113.00  A change to subheading 8101.10 through 8113.00 from any other 
   subheading. 
 Chapter 82   Tools, implements, cutlery, spoons and forks, of base metal; parts  
   thereof of base metal 
82.01 – 82.10   A change to heading 82.01 through 82.10 from any other heading. 
82.11 – 82.12   A change to heading 82.11 through 82.12 from any other heading, even 
   blanks. 
82.13 – 82.15   A change to heading 82.13 through 82.15 from any other heading. 
 
Chapter 83   Miscellaneous articles of base metal 
83.02 – 83.04   A change to heading 83.02 through 83.04 from any other heading. 
83.06 – 83.07   A change to heading 83.06 through 83.07 from any other heading. 
83.09 – 83.10   A change to heading 83.09 through 83.10 from any other heading. 
 
Section XVI.  Machinery and Appliances, Elect rical Equipment and Parts Thereof; Sound 
Recorders and Reproducers, Television Image and Sound Recorders and Reproducers, and Parts 
and Accessories of Such Articles  
 
Chapter 84   Nuclear reactors, boilers, ma chinery and mechanical appliances; parts 
   thereof  
8401.10 – 8401.30  A change to subheading 8401.10 through 8401.30 from any other heading; or 
   a change to subheading 8401.10 through 8401.30 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8401.40   A change to subheading 8401.40 from any other heading. 
8402.11 – 8402.20  A change to subheading 8402.11 through 8402.20 from any other heading; or 
   a change to subheading 8402.11 through 8402.20 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8402.90   A change to subheading 8402.90 from any other heading. 
8403.10   A change to subheading 8403.10 from any other heading; or a change 
   to subheading 8403.10 from any other subheading complying with a 
   regional value content of not less than 30%. 
8403.90   A change to subheading 8403.90 from any other heading. 
8404.10 – 8404.20  A change to subheading 8404.10 through 8404.20 from any other heading; or 
   a change to subheading 8404.10 through 8404.20 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8404.90   A change to subheading 8404.90 from any other heading. WT/REG165/1 
Page 42  
 
Chapter 84   Nuclear reactors, boilers, ma chinery and mechanical appliances; parts 
   thereof  
8405.10   A change to subheading 8405.10 from any other heading; or a change 
   to subheading 8405.10 from any other subheading complying with a 
   regional value content of not less than 30%. 
8405.90   A change to subheading 8405.90 from any other heading. 
8406.10 – 8406.82  A change to subheading 8406.10 through 8406.82 from any other heading; or 
   a change to subheading 8406.10 through 8406.82 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8406.90   A change to subheading 8406.90 from any other heading. 
84.07 – 84.08   A change to heading 84.07 through 84.08 from any other chapter; or 
   a change to heading 84.07 through 84.08 from any other heading complying  
   with a regional value content of not less than 30%. 
84.09    A change to heading 84.09 from any other heading. 
84.10 – 84.11   A change to heading 84.10 through 84.11 from any other subheading. 
8412.10 – 8412.80  A change to subheading 8412.10 through 8412.80 from any other heading; or 
   a change to subheading 8412.10 through 8412.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8412.90   A change to subheading 8412.90 from any other heading. 
8413.11 – 8413.82  A change to subheading 8413.11 through 8413.82 from any other heading; or 
   a change to subheading 8413.11 through 8413.82 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8413.91 – 8413.92  A change to subheading 8413.91 through 8413.92 from any other heading. 
84.14    A change to heading 84.14 from any other heading; or a change to 
   heading 84.14 from any other subheading complying with a regional 
   content value of not less than 30%. 
8415.10 – 8415.83  A change to subheading 8415.10 through 8415.83 from any other heading; or 
   a change to subheading 8415.10 through 8415.83 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8415.90   A change to subheading 8415.90 from any other heading. 
8416.10 – 8416.30  A change to subheading 8416.10 through 8416.30 from any other heading; or 
   a change to subheading 8416.10 through 8416.30 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8416.90   A change to subheading 8416.90 from any other heading. 
84.17    A change to heading 84.17 from any other subheading. 
8418.10 – 8418.40  A change to subheading 8418.10 through 8418.40 from any other subheading 
   outside the group, except from subheading 8418.91. 
8418.50   A change to subheading 8418.50 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8418.61 – 8418.69  A change to subheading 8418.61 through 8418.69 from any other subheading 
   outside the group, except subheading 8418.91. 
8418.91 – 8418.99  A change to subheading 8418.91 through 8418.99 from any other heading. 
8419.11 – 8419.89  A change to subheading 8419.11 through 8419.89 from any other heading; or 
   a change to subheading 8419.11 through 8419.89 from any other 
   subheading complying with a regional value content of not less than 30%. 
8419.90   A change to subheading 8419.90 from any other heading. 
8420.10  A change to subheading 8420.10 from any other heading; or a change 
   to subheading 8420.10 from any other subheading complying with a 
   regional value content of not less than 30%. 
8420.91 – 8420.99  A change to subheading 8420.91 through 8420.99 from any other heading.  WT/REG165/1 
 Page 43 
 
 
Chapter 84   Nuclear reactors, boilers, ma chinery and mechanical appliances; parts 
   thereof  
8422.11 – 8422.40  A change to subheading 8422.11 through 8422.40 from any other heading; or 
   a change to subheading 8422.11 through 8422.40 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8422.90   A change to subheading 8422.90 from any other heading. 
84.23    A change to heading 84.23 from any other heading. 
84.25 – 84.30   A change to heading 84.25 through 84.30 from any other chapter; or  
   a change to heading 84.25 through 84.30 from any other heading complying 
   with a regional value content of not less than 30%. 
84.31    A change to heading 84.31 from any other heading. 
8433.11 – 8433.90  A change to subheading 8433.11 through 8433.90 from any other 
   subheading. 
8434.10 – 8434.20  A change to subheading 8434.10 through 8434.20 from any other heading; or 
   a change to subheading 8434.10 through 8434.20 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8434.90   A change to subheading 8434.90 from any other heading. 
8435.10   A change to subheading 8435.10 from any other heading; or a change 
   to subheading 8435.10 from any other subheading complying with a 
   regional value content of not less than 30 %. 
8435.90   A change to subheading 8435.90 from any other heading. 
8436.10 – 8436.80  A change to subheading 8436.10 through 8436.80 from any other heading; or 
   a change to subheading 8436.10 through 8436.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8436.91 – 8436.99  A change to subheading 8436.91 through 8436.99 from any other heading. 
84.37   A change to heading 84.37 from any other subheading. 
8438.10 – 8438.80  A change to subheading 8438.10 through 8438.80 from any other heading; or 
   a change to subheading 8438.10 through 8438.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8438.90   A change to subheading 8438.90 from any other heading. 
8439.10 – 8439.30 A change to subheading 8439.10 through 8439.30 from any other heading; or 
   a change to subheading 8439.10 through 8439.30 from any other 
   subheading complying with a regional value content of not less than 30%. 
8439.91 – 8439.99  A change to subheading 8439.91 through 8439.99 from any other heading. 
8440.10   A change to subheading 8440.10 from any other heading; or a change 
   to subheading 8440.10 from any other subheading complying with a 
   regional value content of not less than 30%. 
8440.90   A change to subheading 8440.90 from any other heading. 
8441.10 – 8441.80  A change to subheading 8441.10 through 8441.80 from any other heading; or 
   a change to subheading 8441.10 through 8441.80 from any other 
   subheading complying with a regional value content of not less than 30%. 
8441.90   A change to subheading 8441.90 from any other heading. 
8442.10 – 8442.30  A change to subheading 8442.10 through 8442.30 from any other heading; or 
   a change to subheading 8442.10 through 8442.30 from any other 
   subheading complying with a regional value content of not less than 30%. 
8442.40 – 8442.50  A change to subheading 8442.40 through 8442.50 from any other heading. 
8443.11 – 8443.60  A change to subheading 8443.11 through 8443.60 from any other heading; or 
   a change to subheading 8443.11 through 8443.60 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8443.90   A change to subheading 8443.90 from any other heading. WT/REG165/1 
Page 44  
 
Chapter 84   Nuclear reactors, boilers, ma chinery and mechanical appliances; parts 
   thereof  
84.44 – 84.47   A change to heading 84.44 through 84.47 from any other chapter; or  
   a change to heading 84.44 through 84.47 from any other heading complying 
   with a regional value content of not less than 30%. 
84.48 – 84.49   A change to heading 84.48 through 84.49 from any other heading. 
8450.11 – 8450.20  A change to subheading 8450.11 through 8450.20 from any other heading; or 
   a change to subheading 8450.11 through 8450.20 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8450.90   A change to subheading 8450.90 from any other heading. 
8451.10 – 8451.80  A change to subheading 8451.10 through 8451.80 from any other heading; or 
   a change to subheading 8451.10 through 8451.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8451.90   A change to subheading 8451.90 from any other heading. 
8452.10 – 8452.40  A change to subheading 8452.10 through 8452.40 from any other heading; or 
   a change to subheading 8452.10 through 8452.40 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8452.90   A change to subheading 8452.90 from any other heading. 
8453.10 – 8453.80  A change to subheading 8453.10 through 8453.80 from any other heading; or 
   a change to subheading 8453.10 through 8453.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8453.90   A change to subheading 8453.90 from any other heading. 
8454.10 – 8454.30  A change to subheading 8454.10 through 8454.30 from any other heading; or 
   a change to subheading 8454.10 through 8454.30 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8454.90   A change to subheading 8454.90 from any other heading. 
8455.10 – 8455.30  A change to subheading 8455.10 through 8455.30 from any other heading; or 
   a change to subheading 8455.10 through 8455.30 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8455.90   A change to subheading 8455.90 from any other heading. 
84.56 – 84.65   A change to heading 84.56 through 84.65 from any other chapter; or  
   a change to heading 84.56 through 84.65 from any other heading complying 
   with a regional value content of not less than 30%. 
84.66    A change to heading 84.66 from any other heading. 
8467.11 – 8467.89  A change to subheading 8467.11 through 8467.89 from any other heading; or 
   a change to subheading 8467.11 through 8467.89 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8467.91 – 8467.99  A change to subheading 8467.91 through 8467.99 from any other heading. 
8468.10 – 8468.80  A change to subheading 8468.10 through 8468.80 from any other heading; or 
   a change to subheading 8468.10 through 8468.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8468.90   A change to subheading 8468.90 from any other heading. 
84.69 – 84.70   A change to heading 84.69 through 84.70 from any other chapter; or 
   a change to heading 84.69 through 84.70 from any other heading complying 
   with a regional value content of not less than 30%. 
84.71    A change to heading 84.71 from any other heading. 
84.72    A change to heading 84.72 from any other chapter; or a change to 
   heading 84.72 from any other heading complying with a regional 
   content value of not less than 30%. 
8473.10 – 8473.29  A change to subheading 8473.10 through 8473.29 from any other heading. 
8473.40 – 8473.50  A change to subheading 8473.40 through 8473.50 from any other heading.  WT/REG165/1 
 Page 45 
 
 
Chapter 84   Nuclear reactors, boilers, ma chinery and mechanical appliances; parts 
   thereof  
8474.10 – 8474.80  A change to subheading 8474.10 through 8474.80 from any other heading; or 
   a change to subheading 8474.10 through 8474.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8474.90   A change to subheading 8474.90 from any other heading. 
8475.10 – 8475.29  A change to subheading 8475.10 through 8475.29 from any other heading; or 
   a change to subheading 8475.10 through 8475.29 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8475.90   A change to subheading 8475.90 from any other heading. 
8476.21 – 8476.89  A change to subheading 8476.21 through 8476.89 from any other 
   subheading, except the furniture in subheading 8476.90. 
8476.90   A change to subheading 8476.90 from any other heading. 
8477.10 – 8477.80  A change to subheading 8477.10 through 8477.80 from any other heading; or 
   a change to subheading 8477.10 through 8477.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8477.90   A change to subheading 8477.90 from any other heading. 
8478.10   A change to subheading 8478.10 from any other heading; or a change 
   to subheading 8478.10 from any other subheading complying with a 
   regional value content of not less than 30%. 
8478.90   A change to subheading 8478.90 from any other heading. 
8479.10 – 8479.89  A change to subheading 8479.10 through 8479.89 from any other heading; or 
   a change to subheading 8479.10 through 8479.89 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8479.90   A change to subheading 8479.90 from any other heading. 
84.80    A change to heading 84.80 from any other heading; or a change in tariff  
   classification is not required where the regional value content is not  
   less than 30%. 
8482.10 – 8482.80  A change to subheading 8482.10 through 8482.80 from any other heading; or 
   a change to subheading 8482.10 through 8482.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8482.91 – 8482.99  A change to subheading 8482.91 through 8482.99 from any other heading. 
8483.10 – 8483.60  A change to subheading 8483.10 through 8483.60 from any other heading; or 
   a change to subheading 8483.10 through 8483.60 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8483.90   A change to subheading 8483.90 from any other heading. 
84.84 – 84.85   A change to heading 84.84 through 84.85 from any other heading; or a  
   change in tariff classification is not required, when the regional content 
   value is not less than 30%. 
 
Chapter 85   Electrical machinery and equipmen t and parts thereof; sound recorders 
and reproducers, television image and sound recorders and reproducers, 
and parts and accessories of such articles  
85.01 – 85.02   A change to heading 85.01 through 85.02 from any other chapter; or  
   a change to heading 85.01 through 85.02 from any other heading complying 
   with a regional value content of not less than 30%. 
85.03    A change to heading 85.03 from any other heading. 
8504.10 – 8504.50  A change to subheading 8504.10 through 8504.50 from any other heading; or 
   a change to subheading 8504.10 through 8504.50 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8504.90   A change to subheading 8504.90 from any other heading. WT/REG165/1 
Page 46  
 
Chapter 85   Electrical machinery and equipmen t and parts thereof; sound recorders 
and reproducers, television image and sound recorders and reproducers, 
and parts and accessories of such articles  
8505.11 – 8505.30  A change to subheading 8505.11 through 8505.30 from any other heading; or 
   a change to subheading 8505.11 through 8505.30 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8505.90   A change to subheading 8505.90 from any other heading. 
85.06    A change to heading 85.06 from any other subheading. 
85.08    A change to heading 85.08 from any other subheading. 
8509.10 – 8509.80  A change to subheading 8509.10 through 8509.80 from any other heading; or 
   a change to subheading 8509.10 through 8509.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8509.90   A change to subheading 8509.90 from any other heading. 
8510.10 – 8510.30  A change to subheading 8510.10 through 8510.30 from any other heading; or 
   a change to subheading 8510.10 through 8510.30 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8510.90   A change to subheading 8510.90 from any other heading. 
8511.10 – 8511.80  A change to subheading 8511.10 through 8511.80 from any other heading; or 
   a change to subheading 8511.10 through 8511.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8511.90   A change to subheading 8511.90 from any other heading. 
8512.10 – 8512.40  A change to subheading 8512.10 through 8512.40 from any other heading; or 
   a change to subheading 8512.10 through 8512.40 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8512.90   A change to subheading 8512.90 from any other heading. 
8513.10   A change to subheading 8513.10 from any other heading; or a change 
   to subheading 8513.10 from any other subheading complying with a 
   regional value content of not less than 30%. 
8513.90   A change to subheading 8513.90 from any other heading. 
85.14    A change to heading 85.14 from any other subheading. 
8515.11 – 8515.80  A change to subheading 8515.11 through 8515.80 from any other heading; or 
   a change to subheading 8515.11 through 8515.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8515.90   A change to subheading 8515.90 from any other heading. 
8516.10 – 8516.50  A change to subheading 8516.10 through 8516.50 from any other 
   subheading. 
8516.60  A change to subheading 8516.60 from any other subheading, except furniture 
whether or not assembled, cooking stoves whether or not assembled and the top surface panel with or without heating elements or controls, classified in 
subheading 8516.90. 
8516.71 – 8516.79  A change to subheading 8516.71 through 8516.79 from any other heading; or 
   a change to subheading 8516.71 through 8516.79 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8516.80 – 8516.90  A change to subheading 8516.80 through 8516.90 from any other heading. 
8517.11 – 8517.80  A change to subheading 8517.11 through 8517.80 from any other heading; or 
   a change to subheading 8517.11 through 8517.80 from any other  
   subheading. complying with a regional value content of not less than 30%. 
8517.90   A change to subheading 8517.90 from any other heading. 
8518.10 – 8518.50  A change to subheading 8518.10 through 8518.50 from any other heading; or 
   a change to subheading 8518.10 through 8518.50 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8518.90   A change to subheading 8518.90 from any other heading.  WT/REG165/1 
 Page 47 
 
 
Chapter 85   Electrical machinery and equipmen t and parts thereof; sound recorders 
and reproducers, television image and sound recorders and reproducers, 
and parts and accessories of such articles  
85.19 – 85.21   A change to heading 85.19 through 85.21 from any other chapter; or  
   a change to heading 85.19 through 85.21 from any other heading complying 
   with a regional value content of not less than 30%. 
85.22    A change to heading 85.22 from any other heading. 
85.23 – 85.24   A change to heading 85.23 through 85.24 from any other heading; or  
   a change in tariff classification is not required, complying with a regional 
   content value of not less than 30%. 
85.25 – 85.27   A change to heading 85.25 through 85.27 from any other chapter; or  
   a change to heading 85.25 through 85.27 from any other heading complying 
   with a regional value content of not less than 30%. 
8528.13 – 8528.30  A change to subheading 8528.13 through 8528.30 from any other chapter; 
   or a change to subheading 8528.13 through 8528.30 from any other heading 
   complying with a regional va lue content of not less than 30%. 
85.29    A change to heading 85.29 from any other heading. 
8530.10 – 8530.80  A change to subheading 8530.10 through 8530.80 from any other heading; or 
   a change to subheading 8530.10 through 8530.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8530.90   A change to subheading 8530.90 from any other heading. 
8531.10 – 8531.80  A change to subheading 8531.10 through 8531.80 from any other heading; or 
   a change to subheading 8531.10 through 8531.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8531.90   A change to subheading 8531.90 from any other heading. 
8532.10 – 8533.90  A change to subheading 8532.10 through 8533.90 from any other 
   subheading. 
85.34    A change to heading 85.34 from any other heading. 
85.35    A change to heading 85.35 from any other chapter; or a change to 
   heading 85.35 from any other heading complying with a regional  
   content value of not less than 30%. 
85.36    A change to heading 85.36 from any other heading. 
85.38    A change to heading 85.38 from any other heading. 
85.39    A change to heading 85.39 from any other subheading. 
8540.11 – 8540.89  A change to subheading 8540.11 through 8540.89 from any other heading; or 
   a change to subheading 8540.11 through 8540.89 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8540.91 – 8540.99  A change to subheading 8540.91 through 8540.99 from any other heading. 
8541.10 – 8541.60  A change to subheading 8541.10 through 8541.60 from any other heading; or 
   a change to subheading 8541.10 through 8541.60 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8541.90   A change to subheading 8541.90 from any other heading. 
8542.12 – 8542.40  A change to subheading 8542.12 through 8542.40 from any other heading; or 
   a change to subheading 8542.12 through 8542.40 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8542.90   A change to subheading 8542.90 from any other heading. 
8543.11 – 8543.89  A change to subheading 8543.11 through 8543.89 from any other heading; or 
   a change to subheading 8543.11 through 8543.89 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
8543.90   A change to subheading 8543.90 from any other heading. 
85.44 – 85.48   A change to heading 85.44 through 85.48 from any other heading. 
 WT/REG165/1 
Page 48  
 
Section XVII.  Transport Equipment  
 
Chapter 86   Railway or tramway locomo tives, rolling-stock and parts thereof;  
   mechanical (including electro-mechanical) traffic signalling      equipment  
86.01 – 86.09   A change to heading 86.01 through 86.09 from any other heading. 
 
Chapter 87   Automotive vehicles, tractors, velocipedes and other land vehicles;  
   parts and accessories thereof  
87.06    A change to heading 87.06 from any other heading. 
 
Chapter 88   Aircraft, spacecraft, and parts thereof  
88.01 – 88.05   A change to heading 88.01 through 88.05 from any other heading. 
 Chapter 89   Ships and floating structures 
89.01 – 89.08   A change to heading 89.01 through 89.08 from any other heading. 
 
Section XVIII.  Optical, Photographic, Cinemat ographic, Measuring, Checking or Precision 
Instruments and Apparatus; Medical or Surgical In struments and Apparatus; Clocks and Watches; 
Musical Instruments; Parts and Accessories Thereof 
 
Chapter 90  Optical, photographic, cinematographic, measuring, checking or 
precision instruments and apparatus;  medical or surgical instruments 
and apparatus; parts and accessories thereof  
90.01 – 90.02   A change to heading 90.01 through 90.02 from any other heading. 
9003.11 – 9003.19  A change to subheading 9003.11 through 9003.19 from any other heading; or 
   a change to subheading 9003.11 through 9003.19 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9003.90   A change to subheading 9003.90 from any other heading. 
9004.10 – 9004.90  A change to subheading 9004.10 through 9004.90 from any other heading; or 
   a change to subheading 9004.10 through 9004.90 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9005.10 – 9005.80  A change to subheading 9005.10 through 9005.80 from any other heading; or 
   a change to subheading 9005.10 through 9005.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9005.90   A change to subheading 9005.90 from any other heading. 
9006.10 – 9006.69  A change to subheading 9006.10 through 9006.69 from any other heading; or 
   a change to subheading 9006.10 through 9006.69 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9006.91 – 9006.99  A change to subheading 9006.91 through 9006.99 from any other heading. 
9007.11 – 9007.20  A change to subheading 9007.11 through 9007.20 from any other heading; or 
   a change to subheading 9007.11 through 9007.20 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9007.91 – 9007.92  A change to subheading 9007.91 through 9007.92 from any other heading. 
9008.10 – 9008.40  A change to subheading 9008.10 through 9008.40 from any other heading; or 
   a change to subheading 9008.10 through 9008.40 from any other  
   subheading. complying with a regional value content of not less than 30%. 
9008.90   A change to subheading 9008.90 from any other heading. 
9009.11 – 9009.30  A change to subheading 9009.11 through 9009.30 from any other heading; or 
   a change to subheading 9009.11 through 9009.30 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9009.90   A change to subheading 9009.90 from any other heading.  WT/REG165/1 
 Page 49 
 
 
Chapter 90  Optical, photographic, cinematographic, measuring, checking or 
precision instruments and apparatus;  medical or surgical instruments 
and apparatus; parts and accessories thereof  
9010.10 – 9010.60  A change to subheading 9010.10 through 9010.60 from any other heading; or 
   a change to subheading 9010.10 through 9010.60 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9010.90   A change to subheading 9010.90 from any other heading. 
9011.10 – 9011.80  A change to subheading 9011.10 through 9011.80 from any other heading; or 
   a change to subheading 9011.10 through 9011.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9011.90   A change to subheading 9011.90 from any other heading. 
9012.10   A change to subheading 9012.10 from any other heading; or a change 
   to subheading 9012.10 from any other subheading complying with a 
   regional value content of not less than 30%. 
9012.90   A change to subheading 9012.90 from any other heading. 
9013.10 – 9013.80  A change to subheading 9013.10 through 9013.80 from any other heading; or 
   a change to subheading 9013.10 through 9013.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9013.90   A change to subheading 9013.90 from any other heading. 
9014.10 – 9014.80  A change to subheading 9014.10 through 9014.80 from any other heading; or 
   a change to subheading 9014.10 through 9014.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9014.90   A change to subheading 9014.90 from any other heading. 
9015.10 – 9015.80  A change to subheading 9015.10 through 9015.80 from any other heading; or 
   a change to subheading 9015.10 through 9015.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9015.90   A change to subheading 9015.90 from any other heading. 
90.16    A change to heading 90.16 from any other heading; or no change in tariff  
   classification is required where the regional content value is not less than  
   3 0 % .  
9017.10 – 9017.80  A change to subheading 9017.10 through 9017.80 from any other heading; or 
   a change to subheading 9017.10 through 9017.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9017.90   A change to subheading 9017.90 from any other heading. 
90.19 – 90.21   A change to heading 90.19 through 90.21 from any other heading; or  
   a change in tariff classification is not required, complying with a regional 
   regional content value of not less than 30%. 
9022.12 – 9022.30  A change to subheading 9022.12 through 9022.30 from any other heading; or 
   a change to subheading 9022.12 through 9022.30 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9022.90   A change to subheading 9022.90 from any other heading. 
90.23    A change to heading 90.23 from any other heading; or no change in tariff  
   classification is required where the regional content value is not less 
   t h a n  3 0 % .  
9024.10 – 9024.80  A change to subheading 9024.10 through 9024.80 from any other heading; or 
   a change to subheading 9024.10 through 9024.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9024.90   A change to subheading 9024.90 from any other heading. 
9025.11 – 9025.80  A change to subheading 9025.11 through 9025.80 from any other heading; or 
   a change to subheading 9025.11 through 9025.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9025.90   A change to subheading 9025.90 from any other heading. WT/REG165/1 
Page 50  
 
Chapter 90  Optical, photographic, cinematographic, measuring, checking or 
precision instruments and apparatus;  medical or surgical instruments 
and apparatus; parts and accessories thereof  
9026.10 – 9026.80 A change to subheading 9026.10 through 9026.80 from any other heading; or 
   a change to subheading 9026.10 through 9026.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9026.90   A change to subheading 9026.90 from any other heading. 
9027.10 – 9027.80  A change to subheading 9027.10 through 9027.80 from any other heading; or 
   a change to subheading 9027.10 through 9027.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9027.90   A change to subheading 9027.90 from any other heading. 
9028.10 – 9028.30  A change to subheading 9028.10 through 9028.30 from any other heading; or 
   a change to subheading 9028.10 through 9028.30 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9028.90   A change to subheading 9028.90 from any other heading. 
9029.10 – 9029.20  A change to subheading 9029.10 through 9029.20 from any other heading; or 
   a change to subheading 9029.10 through 9029.20 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9029.90   A change to subheading 9029.90 from any other heading. 
9030.10 – 9030.89  A change to subheading 9030.10 through 9030.89 from any other heading; or 
   a change to subheading 9030.10 through 9030.89 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9030.90   A change to subheading 9030.90 from any other heading. 
9031.10 – 9031.80  A change to subheading 9031.10 through 9031.80 from any other heading; or 
   a change to subheading 9031.10 through 9031.80 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9031.90   A change to subheading 9031.90 from any other heading. 
9032.10 – 9032.89  A change to subheading 9032.10 through 9032.89 from any other heading; or 
   a change to subheading 9032.10 through 9032.89 from any other subheading 
   complying with a regional va lue content of not less than 30%. 
9032.90   A change to subheading 9032.90 from any other heading. 
90.33    A change to heading 90.33 from any other heading. 
 
Chapter 91   Clocks and watches and parts thereof 
91.01 – 91.14   A change to heading 91.01 through 91.14 from any other heading. 
 Chapter 92   Musical instruments;  parts and accessories thereof  
92.01 – 92.09   A change to heading 92.01 through 92.09 from any other heading. 
 
Section XIX.  Arms and Ammunition; Parts and Accessories Thereof  
 
Chapter 93   Arms and ammunition ;  parts and accessories thereof  
93.01 – 93.07   A change to heading 93.01 through 93.07 from any other heading. 
 
Section XX.  Miscellaneous Manufactured Articles  
Chapter 94  Furniture;  medical furniture; bedding and similar furnishings;  lamps 
and lighting fittings, not elsewhere sp ecified or included;  illuminated 
signs, illuminated name-plates and the like;  prefabricated buildings 
94.02    A change to heading 94.02 from any other heading. 
94.04    A change to heading 94.04 from any other heading. 
94.06    A change to heading 94.06 from any other heading.  WT/REG165/1 
 Page 51 
 
 
 
Chapter 95   Toys, games and sports equipment;  parts and accessories thereof  
95.01 – 95.08   A change to heading 95.01 through 95.08 from any other heading. 
 
Chapter 96   Miscellaneous manufactured articles  
96.01 – 96.05   A change to heading 96.01 through 96.05 from any other heading. 
9606.10 – 9606.30  A change to subheading 9606.10 through 9606.30 from any other 
   subheading. 
9607.11 – 9607.19  A change to subheading 9607.11 through 9607.19 from any other 
   subheading. 
9607.20   A change to subheading 9607.20 from any other heading. 
9608.10- 9608.40  A change to subheading 9608.10 through 9608.40 from any other 
   subheading, except from subheading 9608.60; or a change to subheading 
   9608.10 through 9608.40 from any other subheading complying with a 
   regional content value of not less than 30%. 
9608.50 – 9609.90  A change to subheading 9608.50 through 9609.90 from any other 
   subheading. 
96.10 – 96.12   A change to heading 96.10 through 96.12 from any other heading. 
9613.10 – 9613.90  A change to subheading 9613.10 through 9613.90 from any other 
   subheading. 
96.14 – 96.16   A change to heading 96.14 through 96.16 from any other heading. 
96.17 – 96.18   A change to heading 96.17 through 96.18 from any other heading; or  
   a change in tariff classification is not required, complying with a regional 
   regional content value of not less than 30%. 
 
Section XXI. Works of Art, Collectors’ Pieces and Antiques  
 
Chapter 97   Works of art, collectors’ pieces and antiques  
97.01 – 97.05   The goods in this heading shall originate in the country where they were  
   obtained or produced; or a change to heading 97.01 through 97.05 from 
   any other heading. 
97.06    The goods in this heading shall be originating when they have remained 
   for more than 100 years in any of the Parties. 
 
 
SECTION C 
 
CHAPTER 5.  CUSTOMS PROCEDURES 
 
Article 5.01  Definitions  
1. For the purposes of this Chapter:   competent authority  means the authority which, under th e law of each Party, is responsible 
for the administration and application of its custom s laws and regulations and/or the administration 
and/or application of this Chapter and Chapters  3 (National Treatment and Market Access) and 
4 (Rules of Origin) and the Uniform Regulations , as appropriate. The Unif orm Regulations shall 
specify the competent authorities of each Party;   commercial importation  means the importation of a good into the territory of a Party for the 
purpose of sale, or any commercial, industrial or other like use; 
 WT/REG165/1 
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 determination of origin  means a determination issued as the result of a verification of origin, 
establishing whether a good qualifies as an originati ng good, in accordance wi th Chapter 4 (Rules of 
Origin);    exporter means an exporter located in the territo ry of a Party from which the good is 
exported, required under this Chapter to maintain th e records in the territory of that Party referred to 
in Article 5.04(5);   identical goods  means "identical goods" as defined in the Customs Valuation Agreement; 
 
 importer  means an importer located in the territory of a Party to which the good is imported, 
required under this Chapter to maintain the record s in the territory of that Party referred to in 
Article 5.03(4);   origin  verification means the administrative process that begins with notification of the 
initiation of a verification by the competent authority of a Party and concludes with the final 
determination of origin;   preferential tariff treatment  means the duty rate applicable to an originating good in 
accordance with the Tariff Elimination Programme; and 
 
 producer  means a person who grows, raises mines,  harvests, fishes, hunts, manufactures, 
processes or assembles a good, located in  the territory of a Party, who is required to keep the records 
referred to in Article 5.04(5) in the territory of that Party.  2. Except as otherwise defined in this Article, th is Chapter includes the definitions established in 
Chapter 4 (Rules of Origin). 
 
Article 5.02 Declaration and certification of origin  
 
1. On the date on which this Agreement comes in to force, the Parties shall prepare a single form 
for the certificate of origin and a single form for th e declaration of origin, which may be modified by 
mutual agreement. 
 2. The certificate of origin referred to in para graph 1 shall serve to certify that a good exported 
from the territory of one Party to the territory of another Party qualifies as an originating good. The 
certificate shall remain valid for up to two years after it is signed. 
 
3. Each Party shall require its exporters to complete and sign a certificate of origin for any exportation of a good for which an importer may claim preferential tariff treatment.  4. Each Party shall require that:  
 
 (a) Where an exporter is not the producer of the good, the exporter may complete and 
sign a certificate of origin on the basis of  (i) Its knowledge of whether the good qualifies as an originating good;   
(ii) its reasonable reliance on the producer ’s written representation that the good 
qualifies as an originating good;  or 
 (iii) the declaration of origin referred to in paragraph 1;  and 
  WT/REG165/1 
 Page 53 
 
 
 (b) the declaration of origin applicable to  the good to be exported shall be completed and 
signed by the producer of the good and given voluntarily to the exporter. The declaration shall remain valid for up to two years after it is signed. 
 5. Each Party shall provide that a certificate of origin that has been completed and signed by an 
exporter in the territory of the other Party is applicable to: 
 
(a) A single importation of one or more goods; or  (b) multiple importations of identical goods  within a specified period, not exceeding 
12 months, set out in the certificate by the exporter. 
 
Article 5.03 Obligations regarding importations 
 
1. Each Party shall require an importer in its terr itory that claims preferential tariff treatment for 
a good imported into its territory from the territory of another Party to: 
 
 (a) Make a written declaration, using the import document established in its law, based 
on a valid certificate of origin, that the good qualifies as an originating good; 
 (b) have the certificate of origin in its posse ssion at the time the declaration referred to in 
(a) is made; 
 (c) provide, on the request of that Party’s comp etent authority, a copy of the certificate of 
origin;  and 
 
(d) promptly make a corrected declaration and pay any duties owing where the importer 
has reason to believe that a certificate on which a declaration was based contains information that is not correct. If the importer complies with the above obligation, it shall not be subject to penalties. 
 2. Each Party shall provide that where an importer in its territory fails to comply with any of the 
requirements established in this Chapter, it shall be denied the preferential tariff treatment claimed for 
the good imported into the territory of the other Party.  3. Each Party shall provide that, where a good w ould have qualified as an originating good when 
it was imported into the territory of that Party but no claim for preferential tariff treatment was made 
at that time, the importer of the good may, no later than one year after the date on which the good was 
imported, apply for a refund of any excess duties paid as the result of the good not having been accorded preferential tariff treatment, on presentation of:   (a) A written declaration that the good qualified  as originating at the time of importation; 
 
(b) a copy of the certificate of origin; and 
 (c) such other documentation relating to th e importation of the good as that Party may 
require. 
 
4. Each Party shall provide that an importer that  claims preferential tariff treatment for a good 
imported into its territory from the territory of anot her Party shall retain the certificate of origin and 
other documentation relating to th e importation required by the importing Party for a minimum period 
of five years after the date of the import. 
 WT/REG165/1 
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Article 5.04 Obligations regarding exportations 
 
1. Each Party shall provide that an exporter or a producer in its territory that has completed and 
signed a certificate or declaration of origin shall prov ide a copy of the certificate or declaration to its 
competent authority on request. 
 
2. Each Party shall provide that an exporter or a producer in its territory that has completed and 
signed a certificate or declaration of origin, and that has reason to believe that the certificate contains information that is not correct, shall promptly notif y in writing all persons to whom the certificate or 
declaration was given of any change  that could affect the accuracy or validity of the certificate or 
declaration and its competent authorit y. In such cases, the exporter or  producer shall not be subject to 
penalties for having presented an incorrect certificate or declaration.  3. Each Party shall provide that the competent au thority of the exporting Party shall inform the 
competent authority of the importing Party in writing of the notification referred to in paragraph 2. 
 
4. Each Party shall provide that a false certification or declaration by an exporter or a producer in its territory that a good to be exported to the te rritory of another Party qualifies as an originating 
good shall have similar legal consequences, with appropriate modifications, as would apply to an 
importer in its territory for a contravention of its customs laws and regulations regarding the making 
of a false declaration or representation. 
 
5.  Each Party shall provide that its exporter or producer that completes and signs a certificate or 
declaration of origin shall retain for a minimum period of five years after the date on which the 
certificate or statement was signed, all the records and documents relating to the origin of the good, 
including those referring to: 
 
 (a) The purchase, costs, value and payment of the good exported from its territory; 
 (b) the purchase, costs, value and payment of  all the materials, including indirect 
materials, used in the production of the good exported from its territory;  and 
 
(c) production of the good in the form in which it is exported from its territory. 
 
Article 5.05 Exceptions 
 
 Provided that an importation does not form part  of two or more importations that may be 
considered to have been undertaken or arrange d for the purpose of avoiding the certification 
requirements of Articles 5.02 and 5.03, a Party shall not require a certificate of origin in the following 
cases:   (a) A commercial importation of a good whose customs value does not exceed US$1,000 
or its equivalent amount in the Party’s currency, or such higher amount as it may 
establish, except that it may require that the invoice accompanying the importation 
include a declaration by the importer or exporter certifying that the good qualifies as an originating good; 
 (b) a non-commercial importation of a good whose value does not exceed US$1,000 or 
its equivalent amount in the Party’s currency, or such higher amount as it may 
establish;  or 
 (c) an importation of a good for which the Part y into whose territory the good is imported 
has waived the requirement for a certificate of origin. 
  WT/REG165/1 
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Article 5.06  Invoicing by a third-country operator 
 
 Where the traded good is invoiced by a third-country operator, regardless of whether it is a Party or a non-Party, the producer or exporter of th e country of origin is required to state in the 
respective certificate of origin, in the section h eaded ‘Comments’, that the goods covered by the 
declaration will be invoiced from that third country and give the name and address of the operator that 
will invoice the operation at destination. 
 
Article 5.07  Confidentiality 
 1. Each Party shall maintain, in accordance with its law, the confidentiality of the confidential 
information collected pursuant to this Chapter and shall protect that information from any disclosure. 
 2. The confidential information collected pursuant to this Chapter may only be disclosed to the 
authorities responsible for the administration and en forcement of determinatio ns of origin, and of 
customs and revenue matters, in accordance with the law of each Party. 
 
Article 5.08  Origin verifications  
1. The importing Party may request information from the exporting Party for the purpose of 
determining the origin of a good. 
 
2. For purposes of determining whether a good impor ted into its territory from the territory of 
another Party under preferential tariff treatment qualif ies as an originating good, the importing Party 
may, through its competent authority, conduct a verification by means of:  
(a) Written questionnaires and requests for info rmation to exporters or producers in the 
territory of the exporting Party;  
 
(b) visits to the premises of an exporter or a producer in the territory of the exporting 
Party to review the accounting records and documents referred to in Article 5.04(5) 
and observe the facilities and materials or products used in the production of the 
good;  or 
 
(c) such other procedure as the Parties may agree. 
 3. An exporter or producer that receives a questi onnaire pursuant to paragra ph 2(a) is required to 
complete and return it within 30 days from the date of receipt. During the period, the exporter or 
producer may, on one occasion, apply in writing for an  extension of the period, which may not be for 
more than 30 days.  4. In the event that the exporter or producer fails to return the duly-completed questionnaire 
within the period or extension, the importing Party may deny preferential tariff treatment. 
 
5. Prior to conducting a verification visit pursuan t to paragraph (2)(b), the importing Party shall, 
through its competent authority, deliver a written notif ication of its intention to conduct the visit. The 
notification shall be sent to the exporter or prod ucer whose premises are to be visited, to the 
competent authority of the Party in whose territory th e visit is to be conducted and, if requested by the 
latter, to the embassy of that Party in the territory of the importing Party. The competent authority of 
the importing Party shall obtain the written consent of the exporter or producer whose premises are to 
be visited.  WT/REG165/1 
Page 56  
 
6. The notification referred to in paragraph 5 shall include: 
 
(a) The identity of the competent authority issuing the notification; 
 
(b) the name of the exporter or producer  whose premises are to be visited; 
 
(c) the date and place of the proposed verification visit; 
 
(d) the object and scope of the proposed verifi cation visit, including specific reference to 
the good that is the subject of the verification; 
 
(e) the identification and titles of the officials performing the verification visit;  and 
 
(f) the legal authority for the verification visit. 
 
7. Where an exporter or a producer has not give n its written consent to a proposed verification 
visit within 30 days of receipt of notification pur suant to paragraph 5, the importing Party may deny 
preferential tariff treatment to the good or goods th at would have been the subject of the visit. 
 8. Each Party shall provide that, where its expor ter or producer receives notification pursuant to 
paragraph 5, it may, within 15 days of receipt of  the notification, apply on one occasion to postpone 
the proposed verification visit for a period not exceeding 60 days from the date of such receipt, or for 
such longer period as the Parties may agree. Notifi cation of the postponement of the visit shall be 
made to the competent authorities of the importing Party and the exporting Party.  9. A Party shall not deny preferential tari ff treatment to a good based solely on the 
postponement of a verification vi sit pursuant to paragraph 8. 
 10. Each Party shall permit an exporter or a prod ucer whose good or goods are the subject of a 
verification visit to designate two observers to be present during the visit, provided that the observers 
do not participate in a manner other than as observe rs. The failure of the exporter or producer to 
designate observers shall not result in the postponement of the visit. 
 
11. Each Party shall, through its competent author ity, conduct a verification of the regional value 
content requirement, de minimis  calculation, or any other provision in Chapter 4 (Rules of Origin) in 
accordance with the Generally Accepted Accounting Pr inciples applied in the territory of the Party 
from which the good was exported. 
 
12. The competent authority conducting a verifi cation shall provide the exporter or producer 
whose good or goods are the subject of the verificati on with a written determination of whether the 
good qualifies as an originating good, including findings of fact and the legal basis for the 
determination.  
13. Where verifications by a Party indicate a patte rn of conduct by an exporter or a producer of 
false or unsupported representations that a good imported  into its territory qualifies as an originating 
good, the importing Party may withhold preferential ta riff treatment to identical goods exported or 
produced by such person until that person establish es compliance with Chapter 4 (Rules of Origin). 
 
14. Each Party shall provide that where its competent authority determines that a good imported 
into its territory does not qualify as an originating good based on a tariff classification or a value applied by the Party to one or more materials used in the production of the good, which differs from the tariff classification or value applied to the ma terials by the Party from whose territory the good 
was exported, the importing Party’s determination shall not become effective until it notifies in  WT/REG165/1 
 Page 57 
 
 
writing both the importer of the good and the pers on that completed and signed the certificate of 
origin for the good of its determination.  15. A Party shall not apply a determination ma de under paragraph 14 to an importation made 
before the effective date of the determination where: 
 
(a) The competent authority of the Party from  whose territory the good was exported has 
issued an advance ruling under Article 5.09 or any other ruling on the tariff classification or on the value of such materi als, on which a person is entitled to rely; 
and 
 
(b) such rulings were given prior to notification of the verification of origin. 
 
Article 5.09  Advance rulings 
 1. Each Party shall, through its competent aut hority, provide for the expeditious issuance of 
written advance rulings, prior to the importation of a good into its territory. The advance rulings shall 
be issued by the competent authority of the territory of the importing Party to an importer in its territory or an exporter or a producer in the territo ry of another Party, on the basis of the facts and 
circumstances presented by them, concerning:  
 (a) Whether a good qualifies as an originating good under Chapter 4 (Rules of Origin); 
 
 (b) whether non-originating materials used in the production of a good undergo a change 
in tariff classification set out in Annex 4.03 (Specific Rules of Origin); 
 
 (c) whether a good satisfies a regional value content requirement established in Chapter 4 
(Rules of Origin); 
 
 (d) whether the method applied by an exporter or a producer in the territory of another 
Party, in accordance with the principles of  the Customs Valuation Agreement, for 
calculating the value of the good or of the materials used in the production of the 
good for which an advance ruling is requested  is suitable for determining whether the 
good complies with the regional value content under Chapter 4 (Rules of Origin); 
 
 (e) whether a good that re-enters its territo ry after the good has been exported from its 
territory to the territory of another Party for repair or alterati on qualifies for duty-free 
treatment in accordance with Article 3.7 (Goods Re-Entered after Repair or 
Alteration);  and 
 
 (f) such other matters as the Parties may agree.  2. Each Party shall adopt or maintain procedures for the issuance of advance rulings, including: 
 
(a) The information reasonably required to process an application;  
 (b) the ability of its competent authority, at  any time during the course of an evaluation 
of an application, to request supplementa l information from the person requesting the 
ruling; 
 
 (c) the obligation of its competent authority  to issue an advance ruling, after it has 
obtained all necessary information from the pe rson requesting an advance ruling;  and 
 WT/REG165/1 
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 (d) the obligation of its competent authority to provide a full explanation of the reasons 
for the advance ruling. 
 3. Each Party shall apply an advance ruling to importations into its territory beginning on the 
date of its issuance or such later date as may be specified in the ruling, unless the advance ruling is 
modified or revoked under paragraph 5. 
 4. Each Party shall provide to any person re questing an advance ruling the same treatment, 
including the same interpretation and application of provisions of Article 3.07 (Goods Re-Entered 
after Repair or Alteration) and Chapter 4 (Rules of  Origin) regarding a determination of origin, as it 
provided to any other person to whom it issued an advance ruling, provided that the facts and 
circumstances are identical in all material respects.  5. An advanced ruling may be modified or revoked in the following cases:  
(a) If the ruling is based on an error 
 
(i) Of fact;  (ii) in the tariff classification of a good or a material that is the subject of the 
ruling;  
 
(iii) in the application of a regional value content requirement established in 
Chapter 4 (Rules of Origin);  or 
 (iv) in the application of the rules for determining whether a good that re-enters 
its territory after the good has been export ed from its territory to the territory 
of another Party for repair or altera tion qualifies for duty-free treatment under 
Article 3.07 (Goods Re-Entered after Repair or Alteration); 
 (b) if the ruling is not in accordance with an  interpretation agreed upon by the Parties 
regarding Chapter 3 (National Treatment a nd Market Access for Goods) or Chapter 4 
(Rules of Origin); 
 (c) if there is a change in the material facts or circumstances on which the ruling is 
based;  
 
(d) to conform with a modification of this Chapter, Chapter 3 (National Treatment and 
Market Access for Goods), Chapter 4 (Rules of Origin) or the Uniform Regulations; 
or 
 (e) to conform with an administrative or judicial decision or a change in the domestic law 
of the Party that issued the advance ruling. 
 
6. Each Party shall provide that any modification or revocation of an advance ruling shall be effective on the date on which it is issued, or on such  later date as may be specified therein, and shall 
not be applied to importations of a good that ha ve occurred prior to that date, unless the person to 
whom the advance ruling was issued has not act ed in accordance with its terms and conditions. 
 
7. Notwithstanding paragraph 6, the Party issu ing the advance ruling shall postpone the entry 
into force of the modification or revocation for a period not to exceed 90 days, when the person to 
whom the advance ruling was issued acted in  good faith to that person’s detriment. 
  WT/REG165/1 
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8. Each Party shall provide that where its competent authority examines the regional value 
content of a good for which it has issued an advance ruling, it shall evaluate whether: 
 
(a) The exporter or producer has complied w ith the terms and conditions of the advance 
ruling; 
 
(b) the exporter’s or producer’s operations ar e consistent with the material facts and 
circumstances on which the advance ruling is based;  and 
 (c) the data and computations used in applying the basis or method for calculating value 
or allocating cost were correct in all material respects. 
 9. Each Party shall provide that where its comp etent authority determines that any requirement 
in paragraph 8 has not been satisfied, the compet ent authority may modify or revoke the advance 
ruling as the circumstances may warrant. 
 
10. Each Party shall provide that where its comp etent authority determines that an advance ruling 
was based on incorrect information, the person to wh om it was issued shall not be subject to penalties 
provided the person demonstrates that it used reasona ble care and acted in good faith in presenting the 
facts and circumstances on which the ruling was based.  
11. Each Party shall provide that where an a dvance ruling is issued to a person that has 
misrepresented or omitted material facts or circumst ances on which the ruling is based or has failed to 
act in accordance with the terms and conditions of th e ruling, the competent authority that issued the 
ruling may apply such measures as the circum stances may warrant, under its domestic law. 
 
12. The Parties shall provide that the person to whom an advance ruling has been issued shall 
only use it for as long as the facts or circumstances on  which the ruling is based continue. Should they 
no longer apply, the person to whom the advance ru ling was issued may present information to enable 
the administration that issued the ru ling to proceed under paragraph 5. 
 13. No good subject to a verification of origin or to  a review or appeal body in the territory of any 
of the Parties shall be the subject of an advance ruling. 
 
Article 5.10  Review and appeal 
 
1. Each Party shall grant to the exporters or pr oducers of another Party the same rights of review 
and appeal of determinations of  origin and advance rulings as it provides to its importers, provided 
that:  
(a) They complete and sign a certificate or d eclaration of origin for a good that has been 
the subject of a determination of origin pursuant to Article 5.08(12);  or 
 
(b) they have received an advance ruling pursuant to Article 5.09. 
 2. The rights referred to in paragraph 1 shall incl ude access to at least one level of administrative 
review independent of the official or office respons ible for the determinati on or advance ruling under 
review; and access to a judicial review of the dete rmination or decision taken at the final level of 
administrative review, in accordance with the law of each Party. 
 
Article 5.11  Penalties 
 
1. Each Party shall establish or maintain criminal , civil or administrative penalties for violations 
of its laws and regulations relating to this Chapter. WT/REG165/1 
Page 60  
 
 2. Nothing in Article 5.03(1)(d), 5.03(2), 5.04(2)  5.08(4), 5.08(7) or 5.08(9) shall be construed 
to prevent a Party from applying such measures as the circumstances may warrant, under its law. 
 
Article 5.12  Uniform regulations  
 
1. The Parties shall establish and implement, unde r their respective laws and regulations, on the 
date on which this Agreement enters into force and at any subsequent time, Uniform Regulations 
regarding the interpretation, app lication and administration of this  Chapter, Chapter 3 (National 
Treatment and Market Access for Goods), Chapter 4 (Rules of Origin) and other matters as may be 
agreed by the Parties. 
 2. The Parties undertake to complete the negotia tion of the Uniform Rules no later than 60 days 
after this Agreement is signed.  
3. Once the Uniform Regulations come into eff ect, each Party shall implement any modification 
or addition thereto no later than 180 days after the Parties agree on such modification or addition, or 
such other period as the Parties may agree.  
Article 5.13  Cooperation 
 1. To the extent possible, each Party shall notify another Party of the following measures, 
rulings and determinations, including those that are prospective in application: 
  (a) A determination of origin issued as the result of an origin verification conducted 
pursuant to Article 5.08, after the avenu es for review and appeal referred to in 
Article 5.10 have been exhausted; 
 
 (b) a determination of origin that the Party c onsiders to be contrary to a ruling issued by 
the competent authority of a nother Party with respect to the tariff classification or 
value of a good or of materials used in the production of a good; 
 
(c) a measure establishing or significantly modifying an administrative policy that could 
affect future determina tions of origin;  and 
 (d) an advance ruling or a modification thereof, pursuant to Article 5.09. 
 
2. The Parties shall cooperate:  
 
(a) In the enforcement of their respective customs-related laws  or regulations 
implementing this Agreement, and under any customs mutual assistance agreement or 
other customs-related agreement to which they are party; 
 
(b) for purposes of facilitating the flow of trade among them, in such customs-related 
matters as the collection and exchange of  statistics on the importation and exportation 
of goods, the harmonization of documentation u sed in trade, the standardization of 
data elements, the acceptance of an interna tional data syntax and the exchange of 
information; 
 
(c) in the exchange of customs regulations;  (d) in the verification of origin of a good, to which end the competent authority of the 
importing Party may request the competent authority of another Party to carry out  WT/REG165/1 
 Page 61 
 
 
determined investigations for that purpose in  its territory and to issue the respective 
report to the competent authority of the importing Party; 
 (e) in seeking mechanisms for the detection and prevention of unlawful transhipments of 
goods from a Party or a non-Party;  and 
 
(f) in jointly organizing training programmes on customs matters, which include training 
for officials and users who participate directly in customs procedures. 
 
CHAPTER 6.  EMERGENCY ACTION 
 
Article 6.01  Definitions 
 
 For the purposes of this Chapter: 
 
 Agreement on Safeguards means the Agreement on Safeguards that is part of the WTO 
Agreement; 
 
 causal relationship means "causal relationship" as defined in the Agreement on Safeguards; 
  critical circumstances  means circumstances where delay in taking an emergency action 
would cause injury that would be difficult to repair; 
  domestic industry  means the producers as a whole of the like or directly competitive good 
operating in the territory of a Party or those whose joint production of the like or directly competitive 
good constitutes a significant percentage of  total domestic production of that good; 
 
 emergency action  means any measure applied pursuant to  this Chapter. It does not include 
any emergency action pursuant to a procedure begun before this Agreement enters into force; 
 
 investigating authority means "investigating authority" as defined in Annex 6.01; 
 
 serious injury  means "serious injury" as defined in the Agreement on Safeguards; 
 
 threat of serious injury means "threat of serious injury" as defined in the Agreement on 
Safeguards;  and 
 
 transition period  means the period during which a Party may adopt and maintain emergency 
actions, which shall include for each good, the Tari ff Elimination Programme to which it is subject, 
plus an additional period of two year s after the end of that programme. 
 
Article 6.02  Bilateral emergency actions 
 1. For the application of bilate ral emergency actions, an investig ating authority shall conform to 
the provisions of this Chapter and, supplementarily , to the provisions of Article XIX of the GATT of 
1994, the Agreement on Safegua rds and its domestic law. 
 2. Subject to paragraphs 3 th rough 5, and during the transition period, if a good originating in 
the territory of a Party, as a result of the reductio n or elimination of a duty provided for in this 
Agreement, is being imported into the territory of  another Party in such increased quantities, in 
relation to domestic production, a nd under such conditions that the imports of the good from that 
Party alone constitute a substantial cause of serious injury, or threat thereof, to a domestic industry 
producing a like or directly competitive good, the Party into whose territory the good is being WT/REG165/1 
Page 62  
 
imported may, to the minimum extent necessary to re medy or prevent the serious injury or threat 
thereof:   (a) Suspend the further reduction of any rate  of duty provided for under this Agreement 
on the good;  or 
 
(b) increase the rate of duty on the good to  a level not to exceed the lesser of: 
 
(i) The most-favoured-nation applied rate of duty in effect at the time the action 
is taken;  and 
 
(ii) the most-favoured-nation applied rate of duty in effect on the day 
immediately preceding the date of entr y into force of this Agreement. 
 3. The following conditions and limitations sha ll apply to a proceeding that may result in 
emergency action under paragraph 2: 
  (a) A Party shall, without delay, deliver to  another Party written notice of the institution 
of a proceeding that could result in emerge ncy action against a good originating in the 
territory of the other Party; 
 
(b) any such action shall be initiated no later th an one year after the date of institution of 
the proceeding; 
 (c) no action may be maintained:  
(i) For a period exceeding three years, extendable for one additional consecutive 
year in accordance with the procedure established in Article 6.04(21);  or 
 (ii) beyond the expiration of the transiti on period, except with the consent of the 
Party against whose good the action is taken; 
 
(d) the Parties may apply and extend the appli cation of an emergency action to the same 
good no more than twice during the transition period; 
 (e) an emergency action may be applied a second time provided a minimum period 
equivalent to one half of the period dur ing which the emergency action was applied 
for the first time has elapsed; 
 (f) the period during which a provisional emer gency action has been applied shall be 
computed for the purpose of determining the duration of the final emergency action established in subparagraph (c); 
 
(g) provisional actions that do not become final are excluded from the limitation 
established in (d); 
 (h) during an extension of an emergency acti on, the duty shall be gradually reduced to 
the level that applies under the Tariff Elimination Programme; and 
 
(i) upon termination of the emergency action, the duty shall be the duty that applies 
under the Tariff Elimination Programme. 
  WT/REG165/1 
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4. A Party may apply an emergency action after the expiration of the transition period to deal 
with cases of serious injury, or threat thereof, to a domestic industry arising from the operation of this 
Agreement only with the consent of the other Party.  5. The Party taking an action under this Article sh all provide to another Party mutually agreed 
trade liberalizing compensation in the form of concessions having substant ially equivalent trade 
effects or equivalent to the value of the additiona l duties expected to result from the action. If the 
Parties are unable to agree on compensation, the Party against whose good the action is taken may 
take tariff action having trade effects substantially equivalent to the action taken under this Article. 
The Party taking the tariff action shall apply the action only for the minimum period necessary to 
achieve the substantially equivalent effects. 
 
Article 6.03  Global emergency actions 
 
1.  Each Party retains its rights and obliga tions under Article XIX of the GATT 1994 and the 
Agreement on Safeguards except those regarding co mpensation or retaliation and exclusion from an 
emergency action to the extent that such rights or  obligations are inconsistent with this Article. 
 2. Any Party taking an emergency action under pa ragraph 1 shall exclude imports of a good 
from another Party from the action unless:  
(a) Imports from the other Party account for a substantial share of total imports;  and 
 
(b) imports from the other Party contribute importantly to the serious injury, or threat 
thereof, caused by total imports. 
 
3.  In determining whether: 
 
(a) Imports from another Party account for a substantial share of total imports, those 
imports normally shall not be considered substantial if that Party is not among the top 
five suppliers of the good subject to th e proceeding, measured in terms of import 
share during the most recent three-year period;  and 
 
(b) imports from another Party contribute impor tantly to the serious injury, or threat 
thereof, the competent investigating aut hority shall consider such factors as the 
change in the import share of the other Party,  and the level and change in the level of 
imports of the other Party.  In this regard , imports from a Party normally shall not be 
deemed to contribute importantly to serious in jury, or the threat thereof, if the growth 
rate of imports from a Party during the peri od in which the injurious surge in imports 
occurred is appreciably lower than the grow th rate of total imports from all sources 
over the same period. 
 4. A Party shall, without delay, deliver written notice to another Party of the institution of a 
proceeding that may result in em ergency action under paragraph 1. 
 5. No Party may impose restrictions on a good in  an action under paragraph 1 without delivery 
of prior written notice to the Commission, and w ithout adequate opportunity  for consultation with 
another Party, as far in advance of  taking the action as practicable. 
 
6. Where a Party determines to take an action pu rsuant to this Article to originating goods of 
another Party, the action it applies to the originatin g goods of the other Party shall consist, solely and 
exclusively, of tariff measures.  WT/REG165/1 
Page 64  
 
7. The Party taking an action pursuant to this Ar ticle shall provide to the other Party mutually 
agreed trade liberalizing compensation in the form  of concessions having s ubstantially equivalent 
trade effects or equivalent to the value of the additional duties expected to result from the action. 
 8. If the Parties are unable to agree on compensa tion, the Party against whose good the action is 
taken may take action having trade effects subs tantially equivalent to the action taken under 
paragraph 1.  
Article 6.04  Administration of emergency action proceedings 
 1. Each Party shall ensure the consistent and impartial administration of  its laws, regulations, 
rulings and determinations governi ng all emergency action proceedings. 
 2. Each Party shall entrust determinations of ser ious injury, or threat thereof, in emergency 
action proceedings to an investiga ting authority, subject to review  by judicial or administrative 
tribunals, to the extent provided by domestic law. Negative injury determinations shall not be subject 
to modification, on its own motion, by the investigating authority.  The investigating authority 
empowered under domestic law to conduct such proc eedings shall be provided with all the resources 
necessary to enable it to fulfil its mandate.  3. Each Party shall adopt or maintain equitable,  timely, transparent and effective procedures for 
emergency action proceedings, in accordance with  the requirements set out in this Article. 
 
Institution of a proceeding  
 
4 The investigating authority ma y institute a proceeding on its  own motion or under a petition 
presented by entities empowered to take action under its domestic law.  The entity filing the petition 
shall demonstrate that it is representative of the domestic industry producing a good like or directly 
competitive with the imported good. For that purpose, a substantial share may not be less than 25 per 
cent.  5. Except as otherwise provided in this Article, the time periods governing such procedures shall 
be those established in the domestic law of each Party. 
 
Contents of a petition  
 
6. An entity representative of a domestic industry th at files a petition to initiate an investigation 
shall provide the following information to the extent  that such information is publicly available from 
governmental or other sources, or best estimates and the basis therefor if such information is not 
available:  
(a) Product description - the name and descri ption of the imported good concerned, the 
tariff subheading under which that good is cl assified, its current tariff treatment and 
the name and description of the like or directly competitive domestic good concerned; 
 
(b) representativeness: 
 
(i) The names and addresses of the entities filing the petition and the locations of 
the establishments in which they produce the domestic good;  
 
(ii) the percentage of domestic production of the like or directly competitive 
good that such entities account for and the basis for claiming that they are 
representative of an industry;  and 
  WT/REG165/1 
 Page 65 
 
 
(iii) the names and locations of all other domestic establishments in which the like 
or directly competitive good is produced;  
 (c) import data - import data for each of the three most recent full years immediately 
prior to the initiation of a procedure to appl y an emergency action that form the basis 
of the claim that the good concerned is bei ng imported in increased quantities, either 
in absolute terms or relative to  domestic production as appropriate; 
 (d) domestic production data - data on total domestic production of the like or directly 
competitive good for each of the three most recent full years immediately prior to the 
initiation of a procedure to apply an emergency action; 
 (e) data showing injury or threat thereof - quantitative and objective data indicating the 
nature and extent of injury or threat to the concerned industry, such as data showing 
changes in the level of sales, prices, produc tion, productivity, capacity utilization, 
market share, profits and losses, and employment; 
 (f) cause of injury - an enumeration and descri ption of the alleged causes of the injury, or 
threat thereof, and a summary of the basis for the assertion that increased imports of 
the good are causing or threatening to cause serious injury, supported by pertinent 
data; and 
 
(g) criteria for inclusion - quantitative and objective data indicating the share of imports 
accounted for by imports from the territory of another Party and the petitioner’s views 
on the extent to which such imports are contributing importantly to the serious injury, or threat thereof, caused by imports of that good. 
  
7. Petitions shall promptly be made ava ilable for public inspection after filing. 
 
Consultations 
 
8.  As soon as possible after a petition is presented meeting the requirements of paragraph 6 and, 
in any event, prior to the initiation of an investiga tion, the Party that intends to initiate it shall notify 
the other Party and invite it to hol d consultations on the situation. 
 9.  During the entire investigation period, the Pa rty whose goods are under investigation shall be 
given adequate opportunity to continue the consultations. 
 
10.  At the consultations, the Parties may discuss, among other matters, the investigation 
proceeding, elimination of the action, the matters re ferred to in Article 6.02(5) and, in general, 
exchange opinions on the action.  11.  Notwithstanding the obligation to provide  adequate opportunity for consultations, the 
provisions on consultations in paragraphs 8, 9 and 10 are not intended to impede the authorities of any 
Party from promptly initiating an investigation or fo rmulating positive or negative preliminary or final 
determinations or taking action in accordance with the provisions of this Agreement. 
 12.  The Party that is performing an investiga tion shall give, when requested, the Party whose 
goods are under investigation access to the public file , including the non-confidential summary of the 
confidential information used to initiate the investigation or during its course. 
 WT/REG165/1 
Page 66  
 
Notice requirement  
 
13. On instituting an emergency action proceedi ng, the investigating authority shall publish 
notice of the institution of the proceeding in the official journal or a national newspaper within 
30 days after presentation of the petition. The other Pa rty shall be notified of that publication without 
delay, in writing. The notice shall identify the petitio ner, the imported good that is the subject of the 
proceeding and its tariff subheading, the nature and timing of the determination to be made, the time 
and place of the public hearing, dates of deadlines fo r filing briefs, statements and other documents, 
the place at which the petition and any other docume nts filed in the course of the proceeding may be 
inspected, and the name, address and telephone numbe r of the office to be contacted for more 
information.  
 14. With respect to an emerge ncy action proceeding instituted on the basis of a petition filed by 
an entity asserting that it is representative of the domestic industry, the investigating authority shall 
not publish the notice required by paragraph 13 without first assessing carefully that the petition meets 
the requirements of paragraph 6. 
 
Public hearing  
 
15. In the course of each proceeding,  the investigating authority shall: 
 
(a) Notwithstanding the Party’s law, hold a public hearing, after providing reasonable 
notice, to allow importers, exporters, cons umers associations and other interested 
parties to appear in person or by counsel  to present evidence and to be heard on the 
questions of serious injury, or threat th ereof, and the appropriate remedy;  and 
 
(b) provide an opportunity to all interested parties to appear at the hearing to cross-
question interested parties making presentations at that hearing. 
 
Confidential information  
 
16. For the purposes of Article 6.02, the inves tigating authority shall adopt or maintain 
procedures for the treatment of confidential info rmation, protected under domestic law, that is 
provided in the course of a proceeding, including a requirement that interested parties providing such information furnish non-confidential written summari es thereof, or where the interested parties 
indicate that the information cannot be summarized , the reasons why a summary cannot be provided. 
The authorities may disregard that information, unl ess it is convincingly demonstrated by appropriate 
sources that the information is correct. 
 17.  The investigating authority shall not disclose any confidential information provided pursuant to any commitment regarding confidentia lity it has made during the proceeding. 
 
Evidence of injury or threat thereof  
 
18. In conducting its proceeding the investigating authority shall gather, to the best of its ability, 
all relevant information appropriate  to the determination it must make . It shall evaluate all relevant 
factors of an objective and quantifiable nature ha ving a bearing on the situation of that industry, 
including the rate and amount of the increase in imports of the good concerned, the share of the 
domestic market taken by increased imports, a nd changes in the level of sales, production, 
productivity, capacity utilization, profits and losses, and employment.  In ma king its determination, 
the investigating authority may also consider othe r economic factors, such as changes in prices and 
inventories, and the ability of firms in the industry to generate capital. 
  WT/REG165/1 
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Deliberation and report  
 
19.  Except in critical circumstances and in global actions involving perishable agricultural goods, 
the investigating authority, before making an a ffirmative determination in an emergency action 
proceeding, shall allow sufficient time to gather a nd consider the relevant information, hold a public 
hearing and provide an opportunity for all inter ested parties to prepare and submit their views. 
 20. The final determination shall be promptly published in the official journal or a national 
newspaper, setting out the findings and reasoned conc lusions on all pertinent issues of law and fact. 
The determination shall describe the imported good a nd its tariff item number, the standard applied 
and the finding made. The statement of reasons shall set out the basis for the determination, including 
a description of:  
(a) The domestic industry seriously injured or threatened with serious injury; 
 
(b) information supporting a finding that impor ts are increasing, the domestic industry is 
seriously injured or threatened with serious injury, and increasing imports are causing or threatening serious injury;  and 
 
(c) if provided for by domestic law, a ny finding or recommendation regarding the 
appropriate remedy and the basis therefor. 
 
Extension  
 
21.  Where the importing Party determines that  the grounds that gave rise to the bilateral 
emergency action persist, it shall notify the competent authority of the other Party of its intention to 
extend the action, at least 90 days in advance of its  expiry, and shall provide evidence that the reasons 
for its adoption persist, in order to initiate the respective consultations, wh ich shall be held as 
provided in this Article. Notifications of extensio ns and compensation shall be made in the terms 
established in this Article, prior to the expiry of the measures adopted. 
 
Article 6.05  Dispute settlement in emergency action matters 
 
 No Party may request the establishment of an arbitral panel under Article 19.08 (Request for an Arbitral Panel) regarding any emerge ncy action that has simply been proposed. 
 
 
ANNEX 6.01 
INVESTIGATING AUTHORITY 
 
 For the purposes of this Chapter, th e investigating authority shall be: 
 
(a) For Chile, the National Investigating Committee on Price Distortions in Imported 
Goods ("Comisión Nacional Encargada de Inves tigar la Existencia de Distorsiones en 
el Precio de las Mercaderías Importadas") or its successor; 
 
(b) for Costa Rica, the authority determined in its domestic law; 
 
(c) for El Salvador, the technical unit respons ible for investigating situations that may 
warrant emergency action, reporting to the Mi nistry of Economic Affairs ("Ministerio 
de Economía") or its successor; 
 WT/REG165/1 
Page 68  
 
(d) for Guatemala, the technical unit responsib le for investigating situations that may 
warrant emergency action, reporting to the Mi nistry of Economic Affairs ("Ministerio 
de Economía") or its successor; 
 
(e) for Honduras, the technical unit responsible for investigating situations that may 
warrant emergency action, reporting to the Department of Industry and Trade 
("Secretaría de Industria y Comercio") or its successor;  and 
 
(f) for Nicaragua, the technical unit responsible  for investigating situations that may 
warrant emergency action, reporting to th e Ministry of Development Industry and 
Trade ("Ministerio de Fomento, Indu stria y Comercio") or its successor. 
  
CHAPTER 7.  UNFAIR TRADING PRACTICES 
 
Article 7.01 Scope and coverage  
1.  The Parties confirm their rights and obliga tions as established in the Agreement on Subsidies 
and Countervailing Measures and in the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade of 1994, which are part of the WTO Agreement. 
 
2.  Each Party may initiate an investigation a nd apply countervailing or anti-dumping duties, in 
accordance with the Agreements referred to  in paragraph 1 and its domestic law. 
 
Article 7.02  Future work programme 
 1.  The Parties share the objective of promoti ng significant reforms in this field to prevent 
measures of this kind from becoming concealed barrier s to trade. The Parties shall cooperate in the 
effort to achieve such reforms under the frame of  the World Trade Organization and the Free Trade 
Area of the Americas.  2.  Two years after this Agreement has come into  force for all the Parties, they shall establish a 
work programme to examine the possibility of introduc ing reforms, in the sense of paragraph 1, in 
their mutual trade.  WT/REG165/1 
 Page 69 
 
 
PART THREE.  TECHNIC AL BARRIERS TO TRADE 
CHAPTER 8.  SANITARY AND PHYTOSANITARY MEASURES 
 Article 8.01  Definitions 
 1.  For the purposes of this Chapter, the Parti es shall use the definitions and terms established: 
 
(a) In the Agreement on the Application of Sa nitary and Phytosanitary Measures, which 
is part of the WTO Agreement (SPS Agreement); 
 
(b) by the International Office of Epizootics (OIE); 
 (c) in the International Convention on Phytosanitary Protection (ICPP);  and 
 (d) by the Codex Alimentarius Commission, hereinafter the "Codex". 
 
2. The competent authorities shall be the authorities with legal responsibility for ensuring compliance with the sanitary a nd phytosanitary requirements established in this Chapter. 
 
Article 8.02  General provisions 
 1.  Based on the SPS Agreement, the Parties esta blish a framework of rules and disciplines that 
guide the adoption of and compliance with sanitary  and phytosanitary measures, and therefore the 
provisions of this Chapter refer to the principles,  rules and procedures relating to the sanitary and 
phytosanitary measures which regulate or which may, directly or indirectly, affect trade among the Parties. 
 
2. Through mutual cooperation, the Parties shall facilitate trade that presents no sanitary or 
phytosanitary risks and undertake to prevent the introduction or spread of pests and diseases and to 
improve plant and animal health and food safety. 
 
Article 8.03  Rights of the parties 
 
 In accordance with the SPS Agreement, the Parties may: 
 
(a) Establish, adopt, maintain or apply any sanitary or phytosanitary measure in their 
territory only to the extent necessary to pr otect human (food safety) and animal life 
and health, or to preserve plant health, ev en measures that are stricter than an 
international standard, guideline or reco mmendation, providing there is scientific 
justification for doing so; 
 (b) apply their sanitary and phytosanitary measures only to the extent necessary to 
achieve an appropriate level of protec tion, taking into account technical and 
economic feasibility;  and  
 (c) verify that plants, animals and their pro ducts and byproducts for export are subject to 
strict sanitary and phytosanitary monitoring that ensures compliance with the sanitary 
and phytosanitary requirements of the importing Party. 
 Article 8.04  Obligations of the parties 
 
1. Sanitary and phytosanitary measures shall not  constitute a disguised restriction on trade or 
create unnecessary obstacles to trade among the Parties. 
 WT/REG165/1 
Page 70  
 
2. Sanitary and phytosanitary measures shall be  based on scientific principles, be maintained 
only where there are sufficient grounds and be ba sed on an appropriate risk assessment, taking 
technical and economic feasib ility into consideration. 
 3. Sanitary and phytosanitary measures shall be  based on international measures, standards, 
guidelines or recommendations, except where it is scien tifically demonstrated that such measures, 
standards, guidelines or recommendations are not an effective or adequate means of protecting human 
(food safety) and animal life and health, or to preserve plant health in the territory of a Party.  4. Where identical or similar conditions exist,  a sanitary or phytosanitary measure shall not 
discriminate arbitrarily or unjustifiably between its  goods and like goods of another Party or between 
the goods of another Party and like goods of a non-Party.  5. The Parties shall provide the necessary facilities to verify control, inspection and approval 
procedures, the application of measures and sanitary and phytosanitary programmes. 
 
Article 8.05  International standards and harmonization 
 
 To expeditiously apply sanitary and phytosanitary  measures in the territory of the Parties, 
thereby facilitating trade flows, procedures for control, inspection and approval of sanitary and 
phytosanitary measures shall be b ased on the following principles: 
 
(a) Each Party shall use international st andards, guidelines or recommendations as the 
basis for its sanitary and phytosanitary meas ures, in order to harmonize them or make 
them compatible with those of another Party; 
 
(b) notwithstanding subparagraph (a), the Par ties may adopt, apply, establish or maintain 
a sanitary or phytosanitary measure that offe rs a level of protection different from that 
which would be achieved by measures based  on an international standard, guideline 
or recommendation, or which is stricter, if there is scientific justification; 
 (c) to achieve closer harmonization, the Parties shall follow the guidelines of the 
competent international organizations – the ICPP for plant health, the OIE for animal 
health, and the standards of the Codex w ith respect to food safety and tolerance 
limits; 
 (d) the Parties shall also take into consid eration the standards and guidelines of other 
international organizations of which they are members;  and 
 (e) the Parties shall establish harmonized sanitary and phytosanitary systems for 
sampling, diagnosis, inspection and certificati on of animals, plants, their products and 
byproducts and food safety. 
 
Article 8.06  Equivalence  
 To more expeditiously apply sanitary and ph ytosanitary measures in the territory of the 
Parties, thereby facilitating trade flows, contro l and inspection procedures shall be applied in 
accordance with the following principles: 
 
(a) Without reducing the appropriate level of protection of human (food safety) and 
animal life and health or of preservation of plant health in their territory, the Parties 
shall accept to the fullest extent possible, their sanitary and phytosanitary measures as 
equivalent; 
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(b) each Party shall accept the sanitary and ph ytosanitary measures of another Party as 
equivalent, even if they differ from its own, providing the other Party demonstrates through scientific information and risk assess ment methods agreed to by them, that 
the measures achieve an adequate level of protection;  and 
 
(c) to establish equivalencies between sanit ary and phytosanitary measures, the Parties 
shall facilitate access to their territory for the purposes of inspection, testing and other 
pertinent measures. 
 
Article 8.07  Assessment of risk and determination of the appropriate level of sanitary and 
phytosanitary protection  
 
 On the basis of the guidelines issued by the competent international organizations: 
  (a) The Parties shall ensure that their san itary and phytosanitary measures are based on 
an adequate assessment, as appropriate to the circumstances, of the risks to human 
(food safety) and animal life and health or to the preservation of plant health, taking 
into account the guidelines and risk asse ssment techniques established by the 
competent international organizations; 
 
 (b) in assessing the risk posed by a good and establishing the appropriate levels of 
protection, the Parties shall take account of factors such as the following: 
   (i) The scientific and technical information available; 
 
  (ii) the existence of pests or diseases and the recognition of pest- and disease-free 
areas and areas of low pest and disease prevalence; 
 
  (iii) the epidemiology of regulated pests and diseases; 
 
  (iv) an analysis of critical contro l points for sanitary (food safety) and 
phytosanitary aspects; 
 
  (v) pertinent ecological and environmental conditions; 
 
  (vi) production processes and methods, and inspection, sampling and testing 
methods; 
 
  (vii) the structure and organization of sanitary and phytosanitary services; 
 
  (viii) protection, surveillance, diagnos is and treatment procedures to ensure 
product safety; 
 
  (ix) production or sales losses in the ev ent of a pest or disease entering, taking 
root or propagating; 
 
  (x) quarantine measures and applicable treatments to satisfy the importing Party 
with respect to risk mitigation;  and 
 
  (xi) pest or disease control or eradica tion costs in the territory of the importing 
Party and the cost-effectiveness ratio of other possible risk reduction methods; 
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(c)  in establishing their appropriate level of pr otection, the Parties shall take into account 
the objective of minimizing the negative effects on trade and, with the purpose of achieving consistency in protection levels , shall avoid arbitrary or unjustifiable 
distinctions that could lead to discrim ination or which constitute a disguised 
restriction on trade among the Parties; 
 
(d) where a Party performs a risk assessme nt and concludes that the scientific 
information is insufficient, it may adopt a provisional sanitary or phytosanitary measure on the basis of available information, including information from the competent international organizations and the sanitary or phytosanitary measures 
applied by another Party. Once the neces sary information becomes available, the 
Party shall conclude the assessment and, when  warranted, shall proceed to modify the 
sanitary or phytosanitary measure; 
 
(e) a risk analysis conducted by a Party sh all be performed within the period of time 
previously agreed to by the Parties. If the r esults of the analysis indicate refusal of the 
importation, the scientific basis for the d ecision shall be notified in writing;  and 
 
(f)  where a Party has reason to believe that a specific sanitary or phytosanitary measure 
established or maintained by another Party rest ricts or may restrict its exports and that 
measure is not based on pertinent in ternational standards, guidelines or 
recommendations, or such standards, guide lines or recommendations do not exist, it 
may ask for an explanation of the reas ons for those sanitary and phytosanitary 
measures and the Party that maintains the measures shall provide an explanation 
within 30 days after the date on which th e competent authority receives the request. 
 
Article 8.08 Recognition of pest- or disease-fr ee areas and areas of low pest or disease 
prevalence 
 
1. On the basis of international recommendations , the Parties shall recognize pest- or disease-
free areas and areas of low pest or disease prevalence, giving consideration to geographic location, ecosystems, epidemiological surveillance and the effec tiveness of sanitary or phytosanitary controls in 
such areas, among the main factors. 
 2. A Party that declares an area in its territo ry to be free from a given pest or disease shall 
demonstrate that condition objectively to the importin g Party and give it assurances that the area shall 
be maintained as such, based on the protection measu res adopted by the heads of the sanitary or 
phytosanitary services. 
 3. A Party interested in obtaining recognition of an area that is free from a given pest or disease shall make application to anothe r Party and provide it with the co rresponding scientific and technical 
information.  
4. A Party receiving the application for recognitio n shall decide on it within a period agreed 
upon in advance with the other Party and may conduct  verifications involving inspections, testing and 
other procedures. In the event it refuses the application, it shall give the technical reasons for its 
decision in writing.  
5. The Parties shall agree on specific requirements whose compliance shall permit a good 
produced in an area of low pest or disease prevalence to be imported, if the appropriate level of protection is provided, in accordance with A nnex A, paragraph 7, of the SPS Agreement. 
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Article 8.09  Control, inspection and approval procedures  
 
 Pursuant to this Chapter, the Parties sha ll apply the provisions of Annex C of the SPS 
Agreement, relating to control, inspection and a pproval procedures, including systems for approving 
the use of additives and for establishing tolerances for contaminants in foods, beverages or feedstuffs. 
 Article 8.10  Transparency  
 
 Each Party, when proposing the adoption or modification of a sanitary or phytosanitary measure of general application on the central le vel, shall notify through its competent authorities: 
 
(a) The adoption and modification of such meas ures. It shall also facilitate information 
on them, in accordance with Annex B of the SPS Agreement, making the appropriate 
adaptations; 
 
(b) changes or modifications in sanitary or  phytosanitary measures with a significant 
effect on trade among the Parties, no less than 60 days prior to the entry into force of the new provision, to permit another Party to comment. In emergency situations the 
term shall be waived, in accordance with Annex B of the SPS Agreement; 
 (c) changes in the field of animal health  and the appearance of exotic diseases and 
diseases of List A of the OIE, within 24 hours after detection of the problem; 
 (d) changes in the field of plant health, such  as the appearance of quarantine pests or the 
spread of pests under official control, within 72 hours after verification; 
 
(e) findings of epidemiological importance and significant changes in relation to diseases 
and pests not included in (c) or (d) that could affect trade among the Parties, within a maximum of 10 days; 
 (f) outbreaks of diseases which it is scientifica lly proven are caused by the consumption 
of raw or processed impor ted food products;  and 
 
(g) the reasons for which a good of an exporting Party is rejected. 
 2.  Parties shall use the notification and inform ation centres established in the SPS Agreement as 
channels of communication. In the event of emerge ncy actions, the Parties agree to notify each other 
in writing immediately, briefly indicating the objective and justification of the measure, and the nature 
of the problem.  3.  As provided in Article 17.02 (Contact Points ), each Party shall respond to reasonable requests 
for information from another Party and provide the pertinent documentation, in accordance with the 
principles established in Annex B, pa ragraph 3, of the SPS Agreement. 
 Article 8.11  Committee on Sanita ry and Phytosanitary Measures 
 
1.  The Parties establish a Committee on San itary and Phytosanitary Measures, whose 
composition is established in Annex 8.11. 
 
2.  The Committee shall examine matters relating to this Chapter and, without detriment to 
Article 18.05(2) (Committees), it shall:  
(a) Promote the facilities needed for the trai ning and specialization of technical staff; 
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(b) promote cooperation and exchanges of t echnical staff, including cooperation in the 
development, application and observance of sanitary and phytosanitary measures; 
 (c) promote active participation by the Par ties in international organizations;  and 
 
(d) establish a roster of qualified specialists in  the fields of food safety, plant health and 
animal health for the purposes of Ar ticle 18.07 (Groups of Experts). 
 
 
ANNEX 8.11 
COMMITTEE ON SANITARY AND PHYTOSANITARY MEASURES 
 
 The Committee on Sanitary and Phytosanitary Measures established in Article 8.11(1) shall 
be composed of: 
 
(a) For Chile, the Directorate General of International Economic Relations of the 
Ministry of Foreign Affairs ("Dire cción General de Relaciones Económicas 
Internacionales del Ministerio de Re laciones Exteriores") or its successor; 
 (b) for Costa Rica, the Ministry of Foreign Trade ("Ministerio de Comercio Exterior") 
and the agencies responsible for applying sanitary and phytosanitary measures 
designated by the Ministry or their successors; 
 (c) for El Salvador, the Ministry of Economic Affairs ("Ministerio de Economía"), the 
Ministry of Agriculture and Livestock ("Mi nisterio de Agricultura y Ganadería") and 
the Ministry of Public Health and Social  Welfare ("Ministerio de Salud Pública y 
Asistencia Social") or their successors; 
 (d) for Guatemala, the Ministry of Econom ic Affairs ("Ministerio de Economía"), the 
Standards and Regulations Unit of the Ministry of Agriculture, Livestock and Food ("Unidad de Normas y Regulaciones del Ministerio de Agricultura, Ganadería y Alimentación") and the Unified Food and Medications Control Laboratory of the 
Ministry of Public Health and Social Welf are ("Laboratorio Unificado de Control de 
Alimentos y Medicamentos del Ministerio de  Salud Pública y Asistencia Social") or 
their successors;  
(e) for Honduras, the Department of Indust ry and Trade ("Secretaría de Industria y 
Comercio"), the Department of Health ("Secr etaría de Salud") and the Department of 
Agriculture and Livestock ("Secretaría de Agricultura y Ganadería") or their successors;  and 
 (f) for Nicaragua, the Ministry of Development, Industry and Trade ("Ministerio de 
Fomento, Industria y Comercio"), the Ministry of Agriculture and Forests 
("Ministerio Agropecuario y Forestal") and the Ministry of Health ("Ministerio de 
Salud") or their successors. 
 
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CHAPTER 9.  STANDARDS-RELATED MEASURES, METROLOGY 
AND APPROVAL PROCEDURES 
 Article 9.01 Definitions 
 1.  For the purposes of this Chapter: 
 
 approval procedure  means any mandatory administrative procedure to obtain a registration, 
permit, licence or any other authorization for a good or service to be produced, marketed or used for a stated purpose or under stated conditions; 
 
 assessment of risk means evaluation of the potential injury  to legitimate objectives that could 
be caused by a good or service sold ; 
 
 comparable situation  means a situation that ensures the sa me level of safety or protection to 
achieve a legitimate objective; 
  conformity assessment procedure means any procedure used, directly or indirectly, to 
determine that a technical regulation or standard is  fulfilled, including sampling, testing, inspection, 
evaluation, verification, assurance of conformity, registration, accreditation and approval, separately 
or in different combinations; 
 
 international standard means a standard or other guide or recommendation, adopted by an 
international standardizing body a nd made available to the public; 
  international standardizing and metrology body means a standardizing body whose 
membership is open to the relevant bodies of at le ast all the parties to the TBT Agreement, including 
the International Organization for Standardiza tion (ISO), the International Electrotechnical 
Commission (IEC), the Codex Alimentarius Commi ssion, the International Organization of Legal 
Metrology (OIML), the International Commissi on on Radiation Units and Measurements (ICRUM), 
or any other body that the Parties designate;  
 legitimate objective includes the imperatives of national secu rity, the prevention of practices 
which may mislead consumers, the protection of human  health and safety, of animal and plant life and 
health and of the environment;   make compatible means bring different standards-re lated measures of the same scope 
approved by different standardizing bodies to a level su ch that they are either identical, equivalent or 
have the effect of permitting goods or services to be used in place of one an other or fulfil the same 
purpose;   services means any of services set out in Annex 9.01 and others agreed upon by the Parties in 
future negotiations; 
 
 standard  means a document, approved by a recognized body, that provides, for common and 
repeated use, rules, guidelines or characteris tics for goods or related processes and production 
methods, or for services or related operating met hods, with which compliance is not mandatory. It 
may also include or deal exclusively with termi nology, symbols, packaging, marking or labelling 
requirements as they apply to a good, service, process or production method or a related operating 
method;   standards-related measure  means a standard, technical regulation or conformity assessment 
procedure; 
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 TBT Agreement means the Agreement on Technical Barriers to Trade, which is part of the 
WTO Agreement;  and   technical regulation  means a document which lays down goods’ characteristics or their 
related processes and production methods, or services’  characteristics or their related operating 
methods, including the applicable administrative pr ovisions, with which compliance is mandatory. It 
may also include or deal exclusively with termi nology, symbols, packaging, marking or labelling 
requirements as they apply to a good, service, re lated process or production or operating method. 
 2. Except as otherwise defined in paragraph 1, the Parties shall use the terms contained in 
ISO/IEC Guide 2, "General Terms and Their Defi nitions Concerning Standardization and Related 
Activities".  
Article 9.02  General provisions 
  Apart from the provisions of the TBT Agreement, the Parties shall apply the provisions of this 
Chapter.  
Article 9.03  Scope and coverage 
 
1. This Chapter applies to the standards-relate d measures, approval pro cedures and metrology of 
the Parties and measures that may, directly or indi rectly, affect trade in goods or services among them. 
 2. This Chapter does not apply to sanitary and phytosanitary measures. 
 
Article 9.04  Basic obligations and rights 
 
Right to adopt standards-related measures 
 
1. Each Party may prepare, adopt, apply and maintain:  
(a) Standards-related measur es, approval procedures and metrology-related measures as 
established in this Chapter;  and 
 
(b) technical regulations and the conformity assessment procedures applicable to them, to 
ensure the fulfilment of their legitimate objectives. 
 Unnecessary obstacles  
 
2.  No Party may prepare, adopt, maintain or  apply any standards-related measure, approval 
procedure or metrology-related measure with the purpose or effect of creating an unnecessary obstacle to trade among the Parties.   Non-discriminatory treatment  
 
3. Each Party shall, in respect of its sta ndards-related measures, approval procedures and 
metrology-related measures, accord to goods and servi ce providers of another Party national treatment 
and treatment no less favourable than that it accords to like goods and the suppliers of like services of 
any other country. 
 
Use of international standards 
 
4. Each Party shall use, as a basis for prepari ng or applying its sta ndards-related measures, 
approval procedures and metrology-related measures, re levant international sta ndards or international  WT/REG165/1 
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standards whose adoption is imminent, except wher e such standards would be an ineffective or 
inappropriate means to fulfil its legitimate objectiv es, because of fundamental climatic, geographical, 
technological or infrastructural factors or for scientifically proven reasons. 
 
Article 9.05  Assessment of risk 
 
1. A Party may, in pursuing its legitimate objec tives, conduct an assessment of risk, taking into 
account:  
(a) Assessments of risk performed by in ternational standardization organizations; 
 
(b) available scientific evidence or technical information; 
 
(c) related technology; or 
 
(d) end uses of the goods or services. 
 2. Where a Party establishes a level of protecti on that it considers appropriate to achieve its 
legitimate objectives and conducts an assessment of ri sk, it shall avoid arbitrary or unjustifiable 
distinctions between similar goods or si milar services, where the distinctions: 
 
(a) Result in arbitrary or unjustifiable discr imination against goods or service providers 
of another Party; 
 
(b) constitute a disguised restriction on trade among the Parties;  or 
 
(c) discriminate between similar goods or si milar services for the same use under the 
same conditions that pose the same level of risk and provide similar benefits. 
 3. A Party shall provide anothe r Party upon request with documentation on its risk-assessment 
processes and the factors it takes into account in  conducting the assessment and in establishing the 
level of protection, in accordance with Article 9.04.  Article 9.06  Compatibility and equivalence 
 
1.  Without prejudice to the rights conferre d under this Chapter, and taking into account 
international standardization activities, the Parties shall, to the greatest extent practicable, make 
compatible their respective standards-related meas ures without reducing the level of safety or of 
protection of human, animal or plant life or  health, the environment or consumers. 
 2.  Each Party shall treat a technical regulation adopted by another Party as equivalent to its own 
where in cooperation with that other Party, th e importing Party determines that the technical 
regulations of the exporting Party adequately fulfil the importing Party’s legitimate objectives. 
 
3.  The importing Party shall provide to the expor ting Party, on request, its reasons in writing for 
not treating a technical regulation as equivalent under paragraph 2. 
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Article 9.07  Conformity assessment 
 
1. Each Party shall prepare, adopt and apply conformity assessment procedures so as to grant 
access for similar goods and similar services origina ting in the territory of another Party under 
conditions no less favourable than those accorded to  suppliers of similar goods or similar services of 
the Party or of a non-Party in a comparable situation. 
 2. With respect to its conformity assessment  procedures, each Party shall ensure that: 
 
 (a) procedures are initiated and comple ted as expeditiously as possible, in non-
discriminatory order; 
 
 (b) the normal processing period for each such procedure is published or communicated 
to an applicant on request; 
 
 (c) when receiving an application, the comp etent body or authority promptly examines 
the completeness of the documentation and informs the applicant in a precise and 
complete manner of all deficiencies; the competent body transmits as soon as possible the results of the assessment in a precise a nd complete manner to the applicant so that 
corrective action may be taken if neces sary; even when the application has 
deficiencies, the competent body proceeds as far as practicable with the conformity 
assessment if the applicant so requests; and upon request, the applicant is informed of 
the stage of the procedure, with any delay being explained; 
 
 (d) information requirements are limited to what is necessary to assess conformity and 
determine fees; 
 
 (e) the confidentiality of information about a good or service originating in the territory 
of another Party arising from or supplie d in connection with such conformity 
assessment procedures is resp ected in the same way as for a domestic good or service 
and in such a manner that legitimat e commercial interests are protected; 
 
 (f) any fees imposed for assessing the conform ity of a good or service originating in the 
territory of another Party are equitable in relation to any fees chargeable for assessing 
the conformity of like goods or services of national origin, taking into account 
communication, transportation and other costs arising from differences between the location of facilities of the applicant and the conformity assessment body; 
 
 (g) the siting of facilities used in conform ity assessment procedures and the selection of 
samples are not such as to cause unnecessary inconvenience to applicants or their 
agents; 
 
 (h) whenever specifications of a good or service are changed subsequent to the 
determination of its conformity to the app licable technical regulations or standards, 
the conformity assessment procedure for the modified good or service is limited to what is necessary to determine whether ad equate confidence exists that the good or 
service still meets the technical regulations or standards concerned;  and 
 
 (i) a procedure exists to review complaints  concerning the operation of a conformity 
assessment procedure and to take correctiv e action when a complaint is justified. 
 3. To facilitate trade, a Party shall give sympat hetic consideration to a request by another Party 
to negotiate agreements for the mutual recognitio n of the results of their respective conformity 
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 4. Each Party shall, as far as practicable, accep t the results of conformity assessment procedures 
in another Party, provided they offer satisfactor y guarantees, equivalent to those provided by the 
procedures carried out by the accepting Party in its te rritory or which are carried out in its territory 
and whose results it accepts, that the pertinent good or service conforms to the applicable technical 
regulation or standard adopted or mainta ined in the territory of that Party. 
 5. Before accepting the results of a conformity assessment procedure, as provided in paragraph 4, and with the aim of enhancing the sust ained reliability of the results of the conformity 
assessment of each Party, the Parties may cons ult on aspects such as the technical capacity of 
conformity assessment bodies, including verified conf ormity with relevant international standards 
through methods such as accreditation.  6. Recognizing that this should be to the mutu al advantage of the Parties, each Party shall 
accredit, approve or otherwise recognize the confor mity assessment bodies in the territory of another 
Party under conditions no less favourable than it accords to such bodies in its territory. 
 7. For conformity assessment procedures, the Parties may use the capacity and technical infrastructure of accredited bodies established in the territory of the Parties.  
Article 9.08  Approval procedures 
 
Each Party shall apply Article 9.07(1) and (2), ex cept for Article 9.07(2)(g) and (h), to its approval 
procedures, replacing the references to "conf ormity assessment procedures" with "approval 
procedures". 
 
Article 9.09  Metrological standards  
 Each Party shall, as far as practicable, ensure  the traceability of its metrological standards in 
accordance with the recommendations of the Intern ational Bureau of Weights and Measures (BIPM) 
and the International Organization of Legal Metr ology (OIML), complying with the principles 
established in this Chapter.  Article 9.10  Notification 
 
1.  Where there is no pertinent international st andard or the technical content of a technical 
regulation or conformity assessment procedure appli cable to a planned technical regulation does not 
agree with the technical content of the pertinent in ternational standards and pr ovided that the technical 
regulation could have a significant effect on trade among the Parties, each Party shall notify the other 
Parties in writing of the proposed measure at least 60 days in advance of its adoption, to enable 
interested parties to submit comments and consu ltations during that period and permit the notifying 
Party to take them into account.  
2.  Where a Party experiences or is threatened by  an urgent problem relating to safety, health, 
environmental protection or national security, it ma y omit the advance notification, provided that on 
adoption of a measure it shall notify the other Parties.  3.  The Parties shall make notifications under pa ragraphs 1 and 2 in accordance with the formats 
established in the TBT Agreement. 
 4.  Within 30 days after this Agreement comes into force, each Party shall inform the other 
Parties of the body it has designated to make notifications under this Article. 
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Article 9.11  Inquiry points 
 
 Within 30 days after this Agreement comes into force, each Party shall notify the other Parties 
of the entity it has designated as the inquiry point in  its territory and its sphere of responsibility, which 
shall be in charge of responding to all questions  and reasonable inquiries from the other Parties and 
interested persons and providing relevant, up-to -date documents regarding any standards-related 
measure, approval procedure or metrology-related me asure adopted or proposed in its territory by 
governmental or non-governmental bodies. 
 
Article 9.12  Committee on Standardization, Metrology and Approval Procedures 
 
1.  The Parties establish a Committee on Standard ization, Metrology and Approval Procedures, 
whose composition is established in Annex 9.12.  2.  The Committee shall examine matters related to this Chapter and, without detriment to 
Article 18.05(2) (Committees), shall: 
 
(a) Study and propose solutions to standard s-related measures, approval procedures or 
metrology-related measures that a Party considers to be a technical barrier to trade; 
 
(b) facilitate the process by which the Parti es make compatible their standards-related 
and metrology-related measures, giving priori ty to labelling, packaging and packing; 
 
(c) promote technical-cooperation among the Parties; 
 
(d) assist in the risk assessment s performed by the Parties; 
 
(e) cooperate in developing and strengthening standards-related and metrology-related 
measures in the Parties; 
 (f) facilitate the process by which the Par ties establish mutual-recognition agreements; 
and 
 
(g) on the request of a Party, evaluate a nd recommend to the Commission for approval, 
the inclusion of services sectors or subsect ors in Annex 9.01. They shall be included 
through a decision of the Commission. 
 
Article 9.13  Technical cooperation  
1.  Each Party shall promote technical coopera tion by its standardization and metrology bodies, 
providing information or technical assistance, to the extent possible, and on mutually-agreed terms, to 
assist in compliance with this Chapter and for tify standards- and metrology-related activities, 
processes, systems and measures. 
 
2.  The Parties may make joint efforts to arrange for technical-cooperation from non-Party 
countries.    WT/REG165/1 
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ANNEX 9.01 
SERVICES SECTORS OR SUBSECTORS 
 
1. The Parties shall use the Central Product Cl assification (CPC) as established by the United 
Nations Statistics Division, Statistical Papers, Series M, No. 77, Provisional Central Product 
Classification , 1991, and updates to identify the sect ors and subsectors of this Annex. 
 2. The services sectors or subsectors subject to this Chapter are:   (a) Computer and related services (Division 84);  and 
 
 (b) any other established in acco rdance with Article 9.12(2)(g). 
  
ANNEX 9.12 
COMMITTEE ON STANDARDIZATION, METROLOGY AND 
APPROVAL PROCEDURES 
 
 The Committee established in Article  9.12(1) shall be composed of: 
 
(a) For Chile, the Ministry of Economic Affa irs through the Foreign Trade Department 
("Ministerio de Economía, Departamento de  Comercio Exterior") or its successor; 
 
(b) for Costa Rica, the Ministry of Foreign Tr ade ("Ministerio de Comercio Exterior") or 
its successor; 
 
(c) for El Salvador, the Trade Policy Directorate of the Ministry of Economic Affairs 
("Dirección de Política Comercial, Ministerio de Economía") or its successor; 
 
(d) for Guatemala, the body designated by the Ministry of Economic Affairs ("Ministerio 
de Economía") or its successor; 
 
(e) for Honduras, the Department of Indust ry and Trade ("Secretaría de Industria y 
Comercio") or its successor;  and 
 (f) for Nicaragua, the Directorate of Technology, Standardization and Metrology of the 
Ministry of Development, Industry a nd Trade ("Dirección de Tecnología, 
Normalización y Metrología, Ministerio de Fomento, Industria y Comercio") or its 
successor. 
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PART FOUR.  INVESTMENT, SERVICES AND RELATED MATTERS 
CHAPTER 10.  INVESTMENT 
 Article 10.01  Scope and coverage  
1.  The agreements referred to in Annex 10.01 ar e incorporated into this Agreement and form an 
integral part hereof.  2.  In the event of any inconsistency between  this Chapter and another Chapter of this 
Agreement, this Chapter shall prev ail to the extent of the inconsistency, except with respect to 
Chapters 1 (Initial Provisions), 18 (Administrati on of the Agreement), 19 (Dispute Settlement) and 
21 (Final Provisions). 
 
Article 10.02  Future work programme 
 1.  Within two years after this Agreement come s into force, all the Parties shall study the 
possibility of developing and expanding the coverage  of the rules and disciplines established in the 
agreements referred to in Annex 10.01. Development and expansion of those agreements shall form 
an integral part of this Agreement.  2.  Notwithstanding paragraph 1, Chile and a Ce ntral American country may agree to develop 
and expand the coverage of the rules and disciplin es established in the agreements referred to in 
Annex 10.01. Development and expansion of those agre ements shall form an integral part of this 
Agreement. 
 
 
ANNEX 10.01 
SCOPE AND COVERAGE 
 
 The following agreements are in corporated into this Agreement: 
 
(a) Agreement between the Republic of Ch ile and the Republic of Costa Rica on the 
Promotion and Reciprocal Protection of  Investments, signed on 11 July 1996; 
 
(b) Agreement between the Republic of Chile  and the Republic of El Salvador on the 
Promotion and Reciprocal Protection of Investments, signed on 8 November 1996; 
 
(c) Agreement between the Republic of Ch ile and the Republic of Guatemala on the 
Promotion and Reciprocal Protection of Investments, signed on 8 November 1996; 
 
(d) Agreement between the Republic of Chile and the Republic of Honduras on the 
Promotion and Reciprocal Protection of Investments, signed on 11 November 1996; 
and 
 
(e) Agreement between the Republic of Ch ile and the Republic of Nicaragua on the 
Promotion and Reciprocal Protection of Investments, signed on 8 November 1996. 
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CHAPTER 11.  CROSS-BORDER TRADE IN SERVICES 
 Article 11.01  Definitions 
 
 For the purposes of this Chapter: 
 
 government services or functions  means all cross-border services provided by a public 
institution that are not provided under commercial conditions and do not compete with one or more 
service providers; 
 
 cross-border service  means the provision of a service: 
 
(a) From the territory of a Party into the territory of another Party;  (b) in the territory of a Party to a consumer of another Party;  or 
 
(c) by a service provider through the presence of physical persons of a Party in the 
territory of another Party; 
  but does not include the provision of a service in the territory of a Party by an investment in 
that territory; 
 
 professional services  means cross-border services, the provision of which requires post-
secondary technical or university education, or equi valent training or experience, and for which the 
right to practice is granted, restricted or regulat ed by a Party, but does not include services provided 
by trades-persons or vessel and aircraft crew members; 
 
 quantitative restriction  means a non-discriminatory measure that imposes limitations on: 
 
(a) The number of service providers, whether in the form of a quota, a monopoly or an 
economic needs test, or by any other quantitative means;  or 
 
(b) the operations of any service provider, whet her in the form of a quota or an economic 
needs test, or by any other quantitative means; 
  service provider of a Party  means a person of another Party that seeks to provide or 
provides a cross-border service;  and 
 
 specialty air services  means cross-border aerial mapping, aerial surveying, aerial 
photography, forest fire management, fire fighti ng, aerial advertising, glider towing, parachute 
jumping, aerial construction, heli- logging, aerial sightseeing, flight training, aerial inspection and 
surveillance, and aerial spraying services.  Article 11.02  Scope and coverage 
 
1. This Chapter applies to measures adopted or maintained by a Party relating to cross-border 
services provided by service providers of anot her Party, including measures respecting: 
 
(a) The production, distribution, marketing, sale and delivery of a cross-border service; 
 (b) the purchase or use of, or payment for, a cross-border service;  (c) the access to and use of distribution and tr ansportation systems in connection with the 
provision of a cross-border service; WT/REG165/1 
Page 84  
 
 (d) the presence in its territory of a cross-border service provider of another Party;  and  (e) the provision of a bond or other form of financial security as a condition for the 
provision of a cross-border service. 
 
2.  For the purposes of this Chapter, measures a dopted or maintained by a Party include measures 
adopted or maintained by a non-governmental body in  the exercise of a regulatory, administrative or 
other governmental authority delegated to it by that Party.  
3. This Chapter does not apply to:  
 
(a) Subsidies or grants provided by a Party or a State enterprise, including 
government-supported loans, guarantees and insurance; 
 
(b) air services, including domestic and international air transportation services, whether 
scheduled or non-scheduled, and related services in support of air services, other than: 
 
(i) Aircraft repair and maintenance services during which an aircraft is 
withdrawn from service, 
 
(ii) specialty air services;  and 
 (iii) computerized reservation systems; 
 
(c) government services or functions, such as law enforcement, correctional services, 
income security or insurance, social securi ty, social welfare, public education, public 
training, health and child care; 
 (d) cross-border trade in financial services;  or  
(e) procurement by a Party or a State enterprise. 
 4.  Notwithstanding paragraph 3(c), if a duly authorized service provider of a Party provides services or carries out governmental functions, such as law enforcement, correctional services, income 
security or insurance, social security, social welf are, public education, public training, health, and 
child care in the territory of another Party, t hose services shall be protected under this Chapter. 
 5.  Nothing in this Chapter shall be construed to impose any obligation on a Party with respect to 
a national of the other Party seeking access to its employment market, or employed on a permanent basis in its territory, or to confer any right on that  national with respect to such access or employment. 
 Article 11.03  National treatment 
 
1. Each Party shall accord to cross-border ser vices and service providers of another Party 
treatment no less favourable than that it accords to its own like services and like service providers. 
 
2. The Parties may meet the requirement of paragraph 1 by according to cross-border services 
and service providers of another Party, formally id entical or formally different treatment to the 
treatment it accords to its own like services and like service providers.  3. Formally identical or formally different treatme nt shall be considered to be less favourable if 
it modifies the conditions of competition in favour of cross-border services or service providers of a  WT/REG165/1 
 Page 85 
 
 
Party compared to like services or like service providers of another Party. 
 
Article 11.04  Most-favoured-nation treatment 
 
 Each Party shall immediately and unconditiona lly accord to cross-border services and service 
providers of another Party treatment no less favourab le than it accords to like services and like service 
providers of any other country. 
 
Article 11.05  Standard of treatment 
  Each Party shall accord to cross-border services and service providers of another Party the 
better of the treatment required by Articles 11.03 and 11.04. 
 
Article 11.06  Local presence  
 No Party may require a service provider of  another Party to establish or maintain a 
representative office or any form of enterprise, or to  be resident, in its territory as a condition for the 
cross-border provision of a service. 
 
Article 11.07  Granting of permits, authorizations, licenses and certificates  
  For the purpose of ensuring that any measure th at a Party adopts or maintains in relation to 
the requirements and procedures for granting perm its, authorizations, licenses and certificates to 
nationals of another Party does not constitute an unnecessary barrier to trade, each Party shall 
endeavour to ensure that such measures:  
(a)  Are based on objective and transparent cr iteria, such as the capacity and ability to 
provide a cross-border service; 
 (b) are not more burdensome than necessary to ensure the quality of a cross-border 
service;  and 
 
(c)  do not constitute a disguised restriction on the provision of a cross-border service. 
 
Article 11.08  Reservations 
 1. Articles 11.03, 11.04 and 11.06 do not apply to: 
 
(a) Any existing non-conforming measure that is maintained by a Party at any level of 
government, as set out in its Schedule to Annex I; 
 
(b) the continuation or prompt renewal of any non-conforming measure referred to in 
subparagraph (a);  or  
 (c) an amendment to any non-conforming measur e referred to in subparagraph (a) to the 
extent that the amendment does not decr ease the conformity of the measure, as it 
existed immediately before the amendment, with Articles11.03, 11.04 and 11.06. 
 
2. Articles 11.03, 11.04 and 11.06 do not apply to any measure that a Party adopts or maintains 
with respect to sectors, subsectors or activiti es, as set out in its Schedule to Annex II. 
 3. For the purposes of this Article and Article 11.09, existing  means in effect on 
18 August 1998, except between Chile and Honduras, where it means 30 June 1999. 
 WT/REG165/1 
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Article 11.09  Non-discriminatory quantitative restrictions 
 
1. Each Party shall set out in its Schedul e to Annex III any non-discriminatory quantitative 
restriction that it maintains.  
2. Each Party shall notify the other Parties of any non-discriminatory quantitative restriction that 
it adopts after the date of entry into force of this  Agreement and shall set out the restriction in the 
Schedule referred to in paragraph 1.  3. The Parties shall periodically, but in any ev ent at least every two years, endeavour to 
negotiate the liberalization or removal of: 
  (a) The quantitative restrictions maintained by a Party set out in the schedule referred to 
in paragraph 1;  and 
 
 (b) quantitative restrictions adopted by a Pa rty after this Agreement comes into force. 
 
Article 11.10  Denial of benefits 
 
 Subject to prior notification and consultati on in accordance with Articles 17.04 (Provision of 
Information) and 19.06 (Consultations), a Party may deny the benefits of this Chapter to a service 
provider of another Party where the Party establi shes that the service is being provided by an 
enterprise that that has no substa ntial business activities in the territo ry of the other Party and, in 
accordance with the law of that other Party, is owned or controlled by persons of a non-Party. 
 
Article 11.11  Future liberalization 
 
 Through future negotiations to  be arranged by the Commission, the Parties shall seek further 
liberalization in the different services sectors, with a view to eliminating the remaining restrictions in the Schedules referred to in Article 11.08(1) and (2). 
 
Article 11.12  Procedures 
 
 The Parties shall establish procedures for:   
(a) A Party to notify another Party and include in its relevant Schedule: 
 
(i) Amendments of measures referred to in Article 11.08(1) and (2), and 
 
(ii) quantitative restrictions in  accordance with Article 11.09; 
 
(b) commitments to liberalize quantitative restrictions, licensing requirements and other 
non-discriminatory measures;  and 
 
(c) consultations on reservations, quantitative restrictions or commitments with a view to 
further liberalization. 
 
Article 11.13  Professional services 
 
 Annex 11.13 on professional services sets out the rules to be followed by the Parties to 
harmonize the requirements governing professional services through licensing to exercise a profession. 
  WT/REG165/1 
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Article 11.14  Committee on Investment and Cross-Border Services 
 
1.  The Parties establish a Committee on Investment and Cross-Border Services, whose composition is established in Annex 11.14.  
2.  The Committee shall examine matters relating to  this Chapter and to Chapter 10 (Investment). 
 
 
ANNEX 11.13 
PROFESSIONAL SERVICES 
 
Recognition of Post-Secondary Diplomas 
 
1. Where a Party recognizes, either unilaterally or by agreement with another country, a post-
secondary diploma obtained in the territory of another Party or of a non-Party: 
 
(a) Nothing in Article 11.04 shall be constr ued to require that Party to accord such 
recognition to post-secondary diplomas obtained in the territory of another Party;  and 
 (b) a Party shall afford another Party an ad equate opportunity to demonstrate that the 
post-secondary diplomas obtained in the territory of that Party should also be 
recognized or to conclude an agreement or arrangement of comparable effect. 
 
Basis for Recognition of Post-Secondary Diplomas and Licensing of Professional Service Providers 
 
2.  The Parties agree that the processes of mutual recognition of post-secondary diplomas and 
licensing of professional service providers shall be  intended to improve th e quality of professional 
services by establishing standards and criteria for such processes, while simultaneously protecting consumers and safeguarding the public interest.  3.  The Parties shall encourage the relevant  bodies, including competent government authorities 
and professional associations and colleges, where pertinent, to: 
 
(a)  Prepare such standards and criteria;  and  (b)  develop and present recommendations on the mutual recognition of professional 
diplomas and licensing to exercise a profession. 
 
4.  The standards and criteria referred to in para graph 3 may consider the law of each Party and, 
by way of example, the following elements: educa tion, examinations, experience, conduct and ethics, 
professional development and re-certification, scope  of practice, local knowledge, supervision and 
consumer protection.  
5.  The Parties shall provide the detailed in formation necessary for the recognition of post-
secondary diplomas and licensing of professional service providers, including information on 
academic courses, study guides and materials, paymen t of fees, dates of examinations timetables, 
location and membership in professional societies or  colleges. The information includes legislation, 
administrative guidelines and centrally-applied genera l measures and those prepared by governmental 
and non-governmental institutions. 
 
 WT/REG165/1 
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ANNEX 11.14 
COMMITTEE ON INVESTMENT AND CROSS-BORDER TRADE IN SERVICES 
 
 The Committee on Investment and Cross-Border Trade in Services established in Article 11.14 shall be composed of: 
 
(a) For Chile, the Directorate General of International Economic Relations of the 
Ministry of Foreign Affairs ("Dire cción General de Relaciones Económicas 
Internacionales, Ministerio de Relaciones Exteriores") or its successor; 
 
(b) for Costa Rica, the Ministry of Foreign Tr ade ("Ministerio de Comercio Exterior") or 
its successor; 
 (c) for El Salvador, the Ministry of Economic  Affairs ("Ministerio de Economía") or its 
successor; 
 
(d) for Guatemala, the Ministry of Economic Affairs ("Ministerio de Economía") or its 
successor;  
 (e) for Honduras, the Department of Indust ry and Trade ("Secretaría de Industria y 
Comercio") or its successor;  and 
 
(f) for Nicaragua, the Ministry of Development, Industry and Trade ("Ministerio de 
Fomento, Industria y Comercio") or its successor. 
 
 
CHAPTER 12.  AIR TRANSPORTATION 
 Article 12.01  Scope and coverage 
 
1.  This Chapter applies to th e measures that a Party adopts or maintains with respect to air 
transportation services. 
 
2.  The Conventions signed or to be signed between Chile and a Central American country, 
hereinafter the "Conventions", shall form an integral  part of this Agreement, including those referred 
to in Annex 12.01.  
3.  In the event of any inconsistency betw een this Agreement and the Conventions, this 
Agreement shall prevail to the extent of the inconsistency.  
Article 12.02  Consolidation 
 
 No modification made in accordance with the C onventions shall restrict rights existing prior 
to such modification. 
 
Article 12.03  Dispute settlement 
 
1. Disputes regarding the interpretation or appli cation of this Chapter or the Conventions shall 
be settled in accordance with Chapter 19 (Disput e Settlement) of this Agreement, with the 
modifications established in this Article.  2. Where one Party claims that a dispute has ar isen under paragraph 1, Article 19.11 (Panel 
Selection) shall be applicable, except that: 
  WT/REG165/1 
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(a) All members of the arbitral panel shall comply with the requisites established in (b) 
and (c); 
 (b) the Parties shall establish by consensus, no later than 30 days after this Agreement 
comes into force, a roster of up to 10 indi viduals, who are willing and able to serve as 
panellists in air transportation services disputes;  and 
 (c) the roster members shall: 
 
(i) Have specialized knowledge of or pr actical experience in air transportation 
services;  and 
 (ii) comply with the requirements established in Article 19.10 (Qualifications of 
Panellists). 
 
3. Until such time as the roster referred to in pa ragraph 2(b) is established, each disputing Party 
shall designate a panellist and the third shall be  designed by the disputing Parties by mutual 
agreement. Where an arbitral panel has not been established under this paragr aph within the term set 
out in Article 19.11 (Panel Selection), on the request of either of the Parties, the President of the Council of the International Civil Aviation Orga nization shall appoint the remaining panellists, 
following that organization’s procedures. 
 
Article 12.04  Committee on Air Transportation 
 
1.  The Parties establish a Committee on Air Tran sportation, whose composition is established in 
Annex 12.04. 
 
2.  The Committee shall examine ma tters relating to this Chapter. 
 
 
ANNEX 12.01 
SCOPE AND COVERAGE 
 
1.  The Convention on Air Transportation between  the Republic of Chile and the Republic of 
Costa Rica, signed in San Jose on 6 April 1999 or its  successor is incorporated into and made an 
integral part of this Agreement.  
2.  Chile and Costa Rica also agree to ratify a nd be bound by the provisions of the Act signed by 
their aeronautical authorities on 1 July 1998 to the eff ect that it is necessary to temporarily maintain 
limits on fifth freedom operations of Costa Rica n airlines on the route Lima – Santiago – Lima, 
considering that this segment is limited by th e Peruvian Authority for Chilean companies. The 
limitations shall be applied as follows:  
(a) Up to a total of 10,000 passengers may be carried between 1 July and 
31 December 1998, counting both directions; 
 
(b) in 1999, the quota is an annual base of  18,000 passengers, counting both directions, 
plus the percentage increase in total tra ffic on that market in 1998 over the previous 
year. The final quota may not be less that 21,000, counting both directions; 
 
(c) if at 1 January 2000, the Chilean Part y has not requested a review meeting, the 
limitation on the Lima – Santiago – Lima route shall be void. If the Chilean Party requests a review of the quota by that date , it shall be for the purposes of an increase 
and not a reduction; WT/REG165/1 
Page 90  
 
 
(d) the meeting shall be held and concluded w ithin the 30 calendar days after it is called. 
If no meeting is held within that period on Costa Rica’s account, the 1999 quota shall continue to be applied until the review pr ocess is concluded and if it is not held on 
Chile’s account, the limitation shall be void;  and 
 
(e) if, the restrictions imposed by Peru on Chile are removed for any reason, the 
restrictions established herein shall also be removed. 
 
 
ANNEX 12.04 
COMMITTEE ON AIR TRANSPORTATION 
 
 The Committee on Air Transportation establishe d in Article 12.04 shall be composed of: 
 
(a) For Chile, the Civil Aeronautics Board ("Junta de Aeronáutica Civil") or its 
successor; 
 (b) for Costa Rica, the Technical  Civil Aviation Council of the Ministry of Public Works 
and Transport ("Consejo Técnico de Aviación Civil del Ministerio de Obras Públicas y Transportes") and the Directorate General of Civil Aviation ("Dirección General de 
Aviación Civil") or their successors; 
 (c) for El Salvador, the Ministry of Fo reign Affairs ("Ministerio de Relaciones 
Exteriores"), the Directorate General of Air Transport ("Dirección General de Transporte Aéreo") and the Vice-Ministry  of Transport ("Viceministerio de 
Transporte") or their successors; 
 (d) for Guatemala, the Directorate General of Civil Aeronautics ("Dirección General de 
Aeronáutica Civil") or its successor; 
 (e) for Honduras, the Directorate General of Civil Aeronautics of the Department of 
Public Works, Transport and Housing (" Dirección General de Aeronáutica Civil, 
Secretaría de Obras Públicas, Transporte y Vivienda") or its successor;  and 
 (f)  for Nicaragua, the Directorate General of Civil Aeronautics of the Ministry of 
Transport and Infrastructure ("Dirección General de Aeronáutica Civil, Ministerio de 
Transporte e Infraestructura") or its successor. 
 
 
CHAPTER 13.  TELECOMMUNICATIONS 
 Article 13.01  Exclusion 
 
 This Chapter does not apply between Chile and Costa Rica.  
Article 13.02  Definitions 
  For the purposes of this Chapter: 
 
 authorized equipment  means terminal or other equipm ent that has been approved for 
attachment to the public telecommunications transport network in accordance with a Party’s conformity assessment procedures; 
  WT/REG165/1 
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 conformity assessment procedure  means "conformity assessment procedure" as defined in 
Article 9.01 (Definitions) and includes the procedures referred to in Annex 13.02; 
  enhanced or value-added services  means those telecommunications services employing 
computer processing applications that: 
 
(a) Act on the format, content, code, protoc ol or similar aspects of a customer’s 
transmitted information; 
 (b) provide a customer with additional, diffe rent or restructured information;  or 
 
(c) involve customer interaction with stored information; 
  intracorporate communications  means telecommunications through which an enterprise 
communicates: 
 
(a) Internally or with or among its subsidiari es, branches or affiliates, as defined by each 
Party;  or 
 (b) on a non-commercial basis with other pers ons that are fundamental to the economic 
activity of the enterprise and that have a c ontinuing contractual relationship with it;  
 
 but does not include telecommunications services provided to persons other than those 
described herein;  
  principal provider or dominant operator  means a provider with the capacity to 
significantly affect the conditions of participation (from the standpoint of prices and supplies) in a 
given telecommunications services market, as a result of controlling essential installations or the use 
of its market position;   monopoly  means an entity, including a consortium or government agency, that in any 
relevant market in the territory of a Party mainta ins or is designated under its legislation as the sole 
provider of public telecommunications  transport networks or services; 
 
 network termination point  means the final demarcation of the public telecommunications 
transport network at the customer’s premises;   
 private telecommunications transport network  means a telecommunications transport 
network that is used exclusiv ely for intracorporate communications or between predetermined 
individuals;   protocol  means a set of rules and formats that gove rn the exchange of information between 
two peer entities for purposes of transferring signalling or data information; 
 
 public telecommunications transport network  means the telecommunications transport 
network used to commercially operate telecommuni cations services to meet the needs of the public 
generally, not including the terminal equipment of customers or telecommunications transport 
networks beyond the network termination point; 
 
 public telecommunications transport service  means any telecommunications transport 
service required by a Party, explicitly or in effect , to be offered to the public generally, including 
telegraph, telephone, telex and data transmission, that typically involves the real-time transmission of 
customer-supplied information between two or mo re points without any end-to-end change in the 
form or content of the customer’s information; WT/REG165/1 
Page 92  
 
  standards-related measure  means a "standards related measure" as defined in Article 9.01 
(Definitions);   telecommunications  means the transmission, emission or reception of signs, signals, written 
words, images, sounds and information of any t ype by wire, radio, optical means or other 
electromagnetic systems;   telecommunications  service  means a service provided by means of the transmission and 
reception of signals by wire, radio, optical means or other electromagnetic systems, but does not mean 
the cable, broadcast or other electromagnetic dist ribution of radio or te levision programming; and 
  terminal equipment  means any digital or analogue device capable of processing, receiving, 
switching, signalling or transmitting signals by electr omagnetic means and that is connected by radio 
or wire to a public telecommunications tr ansport network at a termination point. 
 Article 13.03  Scope and coverage 
 
1. This Chapter applies to:  
(a) Measures adopted or maintained by a Party relating to the provision of public 
telecommunications services; 
 (b) measures adopted or maintained by a Pa rty relating to access to and use of public 
telecommunications transport networks or services by persons of another Party, 
including access and use by such persons operating private networks for 
intracorporate communications; 
 (c) measures adopted or maintained by a Part y relating to the provision of enhanced or 
value-added services by persons of anothe r Party in the territory, or across the 
borders, of the first Party;  and 
 
(d) standards-related measures relating to att achment of terminal or other equipment to 
public telecommunications transport networks. 
 2. Except to ensure that persons operating broad cast stations and cable systems have continued 
access to and use of public telecommunications trans port networks and services, this Chapter does not 
apply to any measure adopted or maintained by a Pa rty relating to broadcast or cable distribution of 
radio or television programming.  3. Nothing in this Chapte r shall be construed to: 
 
(a) Require a Party to authorize a person of a nother Party to establish, construct, acquire, 
lease, operate or provide telecomm unications transport networks or 
telecommunications transport services; 
 (b) require a Party, or require a Party to compel any person, to establish, construct, 
acquire, lease, operate or provide tel ecommunications transport networks or 
telecommunications transport services not offered to the public generally; 
 (c) prevent a Party from prohibiting persons operating private networks from using their 
networks to provide public telecommunica tions transport networks or services to 
third persons;  or 
  WT/REG165/1 
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(d) require a Party to compel any person enga ged in the broadcast or cable distribution of 
radio or television programming to make ava ilable its cable or broadcast facilities as a 
public telecommunications transport network. 
 
Article 13.04  Access to and use of public tel ecommunications transport networks and services 
 1. For purposes of this Article, "non-discrimin atory" means on terms and conditions no less 
favourable than those accorded to any other cust omer or user of like public telecommunications 
transport networks or services in like circumstances.  
2. Each Party shall ensure that persons of a nother Party have access to and use of any public 
telecommunications transport network or service, in cluding private leased circuits, offered in its 
territory or across its borders for the conduct of  their business, on reasonable and non-discriminatory 
terms and conditions, including as set out in  the other paragraphs of this Article. 
 
3. Subject to paragraphs 7 and 8, each Party sh all ensure that such persons are permitted to: 
 
(a) Purchase or lease, and attach terminal or other equipment that interfaces with the 
public telecommunications transport network; 
 (b) interconnect private leased or owned ci rcuits with public telecommunications 
transport networks in the territory, or across the borders, of that Party, including for 
use in providing dial-up access to and from thei r customers or users, or with circuits 
leased or owned by another person on terms and conditions mutually agreed by those 
persons, as established in Annex 13.04; 
 
(c) perform switching, signalli ng and processing functions;  and 
 (d) use operating protocols of their choice, in  accordance with the technical plans of each 
Party. 
 4. Each Party shall ensure that the pricing of  public telecommunications transport services 
reflects economic costs directly related to provid ing the services without detriment to its domestic 
law. Nothing in this paragraph shall be constr ued to prevent cross-subs idization between public 
telecommunications transport services.  5. Each Party shall ensure that persons of another Party may use public telecommunications 
transport networks or services for the movement of information in its territory or across its borders, 
including for intracorporate communications, and for access to information contained in data bases or 
otherwise stored in machine-readable fo rm in the territory of another Party. 
 6. Further to Article 20.02 (General Exceptions),  nothing in this Chapter shall be construed to 
prevent a Party from adopting or enforcing any measure necessary to: 
 
(a) Ensure the security and confidentiality of messages;  or  (b) protect the privacy of subscribers to pub lic telecommunications transport networks or 
services. 
 
7. Further to Article 13.06, each Party shall ensu re that no condition is imposed on access to and 
use of public telecommunications transport networ ks or services, other than that necessary to: 
 WT/REG165/1 
Page 94  
 
(a) Safeguard the public service responsibilities of providers of public 
telecommunications transport networks or services, in particular their ability to make their networks or services available to the public generally;  or 
 (b) protect the technical integrity of public  telecommunications transport networks or 
services. 
 8. Provided that conditions for access to a nd use of public telecommunications transport 
networks or services satisfy the criteria set out in paragraph 7, such conditions may include: 
 
(a) A restriction on resale or shared use of such services; 
 (b) a requirement to use specified technical  interfaces, including interface protocols, for 
interconnection with such networks or services;  
 
(c)  a restriction on interconnection of private le ased or owned circuits with such networks 
or services or with circuits leased or owned by another person, when the circuits are 
used in the provision of public telecommuni cations transport networks or services;  
and 
 (d) a licensing, permit, concession, registra tion or notification procedure which, if 
adopted or maintained, is transparent and applications filed thereunder are processed 
expeditiously. 
 
Article 13.05  Conditions for the provision of enhanced or value-added services  
 1. Each Party shall ensure that: 
 (a) Any licensing, permit, concession, registra tion or notification procedure that it adopts 
or maintains relating to the provision of  enhanced or value-added services is 
transparent and non-discriminatory, and th at applications filed thereunder are 
processed expeditiously;  and 
 
(b) information required under such procedures is limited to that necessary to 
demonstrate that the applicant has the fina ncial solvency to begin providing services 
or to assess conformity of the applicant’s terminal or other equipment with the Party’s applicable standards or technical regulati ons, or requirements related to the legal 
establishment of the applicant; 
 2. Without prejudice to the law of each Party, no Party may require a pe rson providing enhanced 
or value-added services to:  
(a) Provide those services to the public generally;  
 
(b) cost-justify its rates;  (c) file a tariff;  
(d) interconnect its networks with any pa rticular customer or network;  or  
 (e) conform with any particular standard or  technical regulation for interconnection other 
than for interconnection to a public te lecommunications transport network. 
  WT/REG165/1 
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3. Notwithstanding paragraph 2(c), a Party may require the filing of a tariff by:  
(a) Such provider to remedy a practice of th at provider that the Party has found in a 
particular case to be anticompetitive under its law;  or 
 
(b) a monopoly, principal provider or domina nt operator to which Article 13.07 applies. 
 
Article 13.06  Standards-related measures 
 
1. Each Party shall ensure that its standards -related measures relating to the attachment of 
terminal or other equipment to the public tel ecommunications transport networks, including those 
measures relating to the use of testing and measuring equipment for conformity assessment procedures, are adopted or maintain ed only to the extent necessary to: 
 
 (a) Prevent technical damage to public  telecommunications transport networks; 
 
 (b) prevent technical interference with, or  degradation of, public telecommunications 
transport services;  
 
 (c) prevent electromagnetic interference, and ensure compatibility, wi th other uses of the 
electromagnetic spectrum; 
 
 (d) prevent billing equipment malfunction; 
 
 (e) ensure users’ safety and access to public telecommunications transport networks or 
services;  or 
 
(f) ensure efficient use of the electromagnetic spectrum. 
 2. A Party may require approval for the attach ment to the public telecommunications transport 
network of terminal or other equipment that is not authorized, provided that the criteria for that 
approval are consistent  with paragraph 1. 
 
3. Each Party shall ensure that the network te rmination points for its public telecommunications 
transport networks are defined on a reasonable and transparent basis. 
 4. No Party may require separate authoriza tion for equipment that is connected on the 
customer’s side of authorized equipment that serves as a protective device fulfilling the criteria of 
paragraph 1.  5. Each Party shall:  
(a) Ensure that its conformity assessme nt procedures are transparent and non-
discriminatory and that applications file d thereunder are processed expeditiously; 
 (b) permit any technically qualified entity to perform the testing required under the 
Party’s conformity assessment procedures fo r terminal or other equipment to be 
attached to the public telecommunications transport network, subject to the Party’s 
right to review the accuracy and completeness of the test results;  and 
 (c) ensure that any measure that it adopts or maintains requiring persons to be authorized 
to act as agents for suppliers of teleco mmunications equipment before the Party’s 
relevant conformity assessment bodies is non-discriminatory. 
 WT/REG165/1 
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6. No later than twelve months after the date of  entry into force of th is Agreement, each Party 
shall adopt, as part of its conformity assessment procedures, provisions necessary to accept the test 
results from laboratories or testing facilities in the territory of another Party for tests performed in 
accordance with the accepting Party’s standa rds-related measures and procedures. 
 
Article 13.07  Monopolies or anti-competitive practices  
1. Where a Party maintains or designates a monopol y or where there is a principal provider or 
dominant operator to provide public telecommunica tions transport networks or services, and it, 
directly or through an affiliate, competes in the provision of enhanced or value-added services or 
other telecommunications-related services or te lecommunications-related goods, the Party shall 
ensure that the monopoly, principal provider or dominant operator does not us e its position to engage 
in anticompetitive conduct in those markets, either direc tly or through its dealings with its affiliates, in 
such a manner as to affect adversely a person of another Party. Such conduct may include cross-
subsidization, predatory conduct and the di scriminatory provision of access to public 
telecommunications transport networks or services. 
 2. To prevent such anticompetitive conduct, each  Party shall adopt or maintain effective 
measures, such as:  
(a) Accounting requirements;  
 
(b) requirements for structural separation;  (c) rules to ensure that the monopoly, pr incipal provider or dominant operator  accords 
its competitors access to and use of its pub lic telecommunications transport networks 
or services on terms and conditions no less fa vourable than those it accords to itself or 
its affiliates;  or  
 (d) rules to ensure the timely disclos ure of technical changes to public 
telecommunications transport networks and their interfaces. 
 
Article 13.08  Transparency  
 Further to Article 17.03 (Publication), each Pa rty shall make publicly available its measures 
relating to access to and use of public telecommunica tions transport networks or services, including 
measures relating to: 
 
(a) Tariffs and other terms and conditions of service;  (b) specifications of technical interfaces with the networks or services;   (c) information on bodies responsible for th e preparation and adoption of standards-
related measures affecting such access and use;  
 (d) conditions applying to attachment of term inal or other equipment to the networks;  
and 
 
(e) notification, permit, registration, certifi cation, licensing or concession requirements. 
  WT/REG165/1 
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Article 13.09  Relation to other chapters 
 
 In the event of any inconsistency between this Chapter and another Chapter, this Chapter shall 
prevail to the extent of the inconsistency. 
 
Article 13.10  Relation to international organizations and agreements  
 The Parties recognize the importance of intern ational standards for global compatibility and 
interoperability of telecommunication networks or services and undertake to promote those standards 
through the work of relevant international bodi es, including the International Telecommunication 
Union, the International Organization fo r Standardization and the Inter-American 
Telecommunications Commission. 
 
Article 13.11  Technical cooperation and other consultations 
 1. To encourage the development of inter operable telecommunications transport services 
infrastructure, the Parties shall cooperate in the exch ange of technical information, the development of 
government-to-government training programmes and ot her related activities. In implementing this 
obligation, the Parties shall give special emphasis to existing exchange programmes. 
 2. The Parties shall consult with a view to dete rmining the feasibility of further liberalizing trade 
in all telecommunications services, including pub lic telecommunications transport networks and 
services. 
 
 
ANNEX 13.02 
CONFORMITY ASSESSMENT PROCEDURES 
 
 For the purposes of this Chapter, c onformity assessment procedures include: 
  (a) For Chile:  
(i) Law 18.168, General Law on Telecommunications  ("Ley 18.168, Ley 
General de Telecomunicaciones"); 
 (ii) Law 18.838, Law on the National Te levision Council ("Ley 18.838, Consejo 
Nacional de Televisión") and amendments thereto; 
 
(iii) Law 16.643, Law on Abuse of Publicit y ("Ley 16.643, Ley sobre Abusos de 
Publicidad"); 
 (iv) Supreme Decree 220 of the Ministry of Transport and Telecommunications of 
1981 ("Decreto Supremo 220 del Ministerio de Transportes y 
Telecomunicaciones de 1981");  and 
  (v) Regulation on the Homologation of  Telephone Equipment ("Reglamento de 
Homologación de Aparatos Telefónicos"); 
 
 (b)  for El Salvador: 
 
 (i)  Legislative Decree 142 of 6 November 1997, the Telecommunications Law 
("Decreto Legislativo Nº 142 del 6 de noviembre de 1997, Ley de Telecomunicaciones");  and WT/REG165/1 
Page 98  
 
 (ii)  Executive Decree 64 of 15 May 1998, Regulations of the 
Telecommunications Law ("Decreto Ejec utivo Nº 64 del 15 de mayo de 1998, 
Reglamento de la Ley de Telecomunicaciones"); 
 (c)  for Guatemala: 
 
 (i) Congressional Decree 94-96, General Telecommunications Law ("Decreto Nº 
94-96 del Congreso de la República, Le y General de Telecomunicaciones"); 
 (ii)  Congressional Decree 115-97, Amendments to the General 
Telecommunications Law ("Decreto Nº 115-97 del Congreso de la República, 
Reformas a la Ley General de Telecomunicaciones"); 
 (iii) Government Resolution 574-98, Re gulations for the Operation of Satellite 
Systems in Guatemala ("Acuerdo Guberna tivo Nº 574-98, Reglamento para la 
Explotación de Sistemas Satelitales en Guatemala");  and 
 (iv) Government Resolution 408-99, Regul ations for the Provision of International 
Telephone Service ("Acuerdo Gubernati vo Nº 408-99, Reglamento para la 
Prestación del Servicio Telefónico Internacional"); 
 (d)  for Honduras: 
 
 (i) Decree 185-95 of 31 October 1995,  Telecommunications Framework Law 
("Decreto Nº 185-95 del 31 de octubre de 1995, Ley Marco del Sector de 
Telecomunicaciones"); 
 (ii) Resolution 89-97 of 27 May 1 997, General Regulations of the 
Telecommunications Framework Law ("Acue rdo Nº 89-97 del 27 de mayo de 
1997, Reglamento General de la  Ley Marco del Sector de 
Telecomunicaciones"); 
 (iii) Decree 244-98 of 19 September 1998 ("Decreto Nº 244-98 del 19 de 
septiembre de 1998"); 
 (iv) Decree 89-99 of 25 May 1999 ("Decreto Nº 89-99 del 25 de mayo de 1999");  (v) Resolution OD 003/99, Gazette of 26 February 1999 ("Resolución OD 
003/99, La Gaceta, 26 febrero 1999");  and 
 (vi)  Resolution 105/98, Gazette 0f 11 July 1998 ("Resolución 105/98, La Gaceta, 
11 julio 1998"); and 
 (e)  For Nicaragua: 
   (i) Law 200 of 8 August 1995, General Te lecommunications and Postal Services 
Law published in Gazette 154 of 18 August 1995 ("Ley Nº 200 del 8 de 
agosto de 1995, Ley General de Teleco municaciones y Servicios Postales, La 
Gaceta Nº 154, 18 agosto 1995"); 
   (ii) Law 210 of 30 November 1995, Law Incorporating Private Parties in the 
Operation and Expansion of Public Telecommunications Services published 
in Gazette 231 of 7 December 1995 ("Le y Nº 210 del 30 de noviembre de 
1995, Ley de Incorporación de Particulares en la Operación and Ampliación  WT/REG165/1 
 Page 99 
 
 
de los Servicios Públicos de las Telecomunicaciones, La Gaceta Nº 231, 7 diciembre 1995"); 
   (iii) Decree 19-96 of 12 Septembe r 1996, Regulations of the General 
Telecommunications and Postal Servi ces Law, published in Gazette 177 of 
19 September 1996 ("Decreto Nº 19-96 del 12 de septiembre de 1996, 
Reglamento de la Ley General de  Telecomunicaciones and Servicios 
Postales, La Gaceta Nº 177, 19 septiembre 1996"); 
   (iv) Law 293 of 1 July 1998, Law Am ending Law 210, pub lished in Gazette 123 
of 2 July 1998 ("Ley Nº 293 de 1 de ju lio de 1998, Ley de reforma a la Ley 
N° 210, La Gaceta N° 123, 2 julio 1998");  and 
   (v) Nicaraguan Commercial Code of 1916  ("Código de Comercio de Nicaragua 
de 1916"). 
  
ANNEX 13.04 
INTERCONNECTION OF PRIVATE CIRCUITS 
 
 For the purposes of Article 13.04, for Chile, El Salvador, Guatemala, Honduras and 
Nicaragua, the interconnection of private circuits to public telecommunications transport networks 
shall not provide access to traffic from such private circuits to public networks or vice versa, 
regardless of whether the private circuits are leased or owned.   
CHAPTER 14.  TEMPORARY ENTRY FOR BUSINESS PERSONS 
 Article 14.01  Definitions 
 
1.  For the purposes of this Chapter: 
 
 business activity  means legitimate activities of a commercial nature, established and operated 
to obtain profits on the market. It does not include the possibility of obtaining employment, wages or remuneration from a source of employment in the territory of a Party; 
 
 business person means a national who is engaged in tr ade in goods, the provision of services 
or the conduct of investment activities;  
  labour certification  means the procedure carried out by the competent administrative 
authority to determine whether a national of a Pa rty who wishes to obtain temporary entry into the 
territory of another Party would displace national labour in the same industry or have a significant 
adverse effect on labour co nditions in that industry; 
 
 national means "national" as defined in Article 2-01 (Definitions of General Application) but 
does not include permanent residents;   pattern of practice  means a practise carried out by the immigration authorities of a Party 
repeatedly over a representative period immediat ely prior to the most recent occurrence;  and 
  temporary entry means entry into the territory of a Party by a business person of another 
Party without the intent to establish permanent residence. 
 WT/REG165/1 
Page 100  
 
2.  For the purposes of Annex 14.04: 
 
 executive functions means functions assigned in an organization whereby the person to 
whom they are assigned basically has the following responsibilities:  
(a) To direct the administration of the organization or of a relevant component or 
function thereof; 
 (b) to establish the policies and objectives of the organization, component or function;  or  
(c) to receive supervision or general dire ction only from more senior executives of the 
organization, its board of directors or shareholders; 
 
 management functions  means functions assigned in an or ganization whereby the person to 
whom they are assigned basically has the following responsibilities: 
 
(a) To direct the organization or an essential function of the organization;  (b) to supervise and control the work of other professional employees, supervisors or 
administrators; 
 
(c) to have the authority to hire and dismi ss or recommend hiring a nd dismissal and other 
aspects of personnel management which are be ing directly supervised by that person 
and to carry out senior functions in the orga nizational structure or with respect to the 
function for which the person is responsible;  or 
 
(d) to act with discretionary authority in the day-to-day operation of the function for 
which the person is responsible;  and 
 
 functions that require specialized knowledge  means functions that involve special 
knowledge of a good, service, research, equipment, t echniques, administration of the organization or 
its interests and their application on international markets, or an advanced level of knowledge or 
experience in the organization’s processes and procedures. 
 
Article 14.02  General principles 
 
 Further to Article 1.02 (Objectives), this Chap ter reflects the preferential trading relationship 
that exists among the Parties, the desirability of f acilitating temporary entry on a reciprocal basis and 
of establishing transparent criteria and procedures fo r that purpose, and the need to ensure border 
security and to protect the domestic labour force and permanent employment in their respective 
territories. 
 
Article 14.03  General obligations 
 1. Each Party shall apply its measures relating to the provisions of th is Chapter in accordance 
with Article 14.02 and, in partic ular, shall apply those measures expeditiously so as to avoid unduly 
impairing or delaying trade in goods or services or the conduct of investment activities under this 
Agreement. 
 
2. The Parties shall endeavour to develop and adopt common criteria, definitions and 
interpretations for the implementation of this Chapter.   WT/REG165/1 
 Page 101 
 
 
Article 14.04  Grant of temporary entry 
 
1. Each Party shall grant temporary entry to  business persons who are otherwise qualified for 
entry under applicable measures relating to pub lic health and safety and national security, in 
accordance with this Chapter, including the provisions of Annexes 14.04 and 14.04(1). 
 
2. A Party may refuse to issue an immigration document authorizing employment to a business 
person where the temporary entry of that person might affect adversely:  
(a) The settlement of any labour dispute that is in progress at the place or intended place 
of employment;  or 
 (b) the employment of any person who is involved in such dispute. 
 3. When a Party refuses, pursuant to paragraph 2,  to issue an immigration document authorizing 
employment, it shall:  
 
(a) Inform in writing the business person of the reasons for the refusal;  and 
 (b) promptly notify in writing the othe r Party of the reasons for the refusal. 
 
4. Each Party shall limit any fees for processing applications for temporary entry of business 
persons to the approximate cost of services rendered.  5. A grant of temporary entry under this Chap ter does not replace the requirements for the 
exercise of a profession or activity under the specifi c rules in effect in the territory of the Party 
granting temporary entry. 
 
Article 14.05  Provision of information 
 
1. Further to Article 17.03 (Publication), each Party shall:   
(a) Provide to another Party such materials as will enable it to become acquainted with 
its measures relating to this Chapter;  and 
 
(b) no later than one year after the date of entr y into force of this Agreement, prepare, 
publish and make available in its own terr itory, and in the territory of the other 
Parties, explanatory material in a consol idated document regarding the requirements 
for temporary entry under this Chapter in  such a manner as will enable business 
persons of the other Parties to become acquainted with them. 
 2. Each Party shall collect and maintain, and ma ke available to another Party in accordance with 
its domestic law, data respecting the granting of temporary entry under this Chapter to business 
persons of that other Party who have been issued immigration documentation, including data specific 
to each authorized category. 
 
Article 14.06  Dispute settlement 
 1. A Party may not initiate proceedings under Article 19.07 (Commission, Good Offices, 
Conciliation and Mediation) regardi ng a refusal to grant temporary entry under this Chapter or a 
particular case arising under Article 14.03 unless:  
(a) The matter involves a pattern of practice;  and 
 WT/REG165/1 
Page 102  
 
(b)  the business person has exhausted the ava ilable administrative remedies regarding the 
particular matter. 
 2. The remedies referred to in paragraph (1)(b) shall be deemed  to be exhausted if a final 
determination in the matter has not  been issued by the competent au thority within six months of the 
institution of an administrative proceeding, and the fa ilure to issue a determination is not attributable 
to delay caused by the business person. 
 
Article 14.07  Relation to other chapters  
 Except for this Chapter, Chapters 1 (In itial Provisions), 2 (General Definitions), 
18 (Administration of the Agreement) and 21 (Fin al Provisions) and Articles 17.02 (Contact Points), 
17.03 (Publication), 17.04 (Provision of Informati on) and 17.06 (Administrative Proceedings for the 
Adoption of Measures of General Application), no provision of this Agreement shall impose any 
obligation on a Party regarding its immigration measures. 
 
 
ANNEX 14.04 
TEMPORARY ENTRY OF BUSINESS PERSONS 
 
Section A – Business Visitors 
 
1. Each Party shall grant temporary entry to a business person seeking to engage in a business 
activity set out in Appendix 14.04(A)(1), with no requisites other than those established in the immigration measures applicable to temporary entry, on presentation of: 
 
(a) Proof of citizenship of a Party; 
 (b) documentation demonstrating that the business person will be so engaged and 
describing the purpose of entry;  and 
 (c) evidence demonstrating that the proposed bus iness activity is international in scope 
and that the business person is not seeking to enter the local labour market. 
 2. Each Party shall provide that a busin ess person may satisfy the requirements of 
paragraph 1(c) by demonstrating that:  
 
(a) The primary source of remuneration for the bus iness activity is outside the territory of 
the Party granting temporary entry;  and 
 (b) the business person’s principal place of business and the actual place of accrual of 
profits, at least predominantly, remain outside the territory of the Party granting temporary entry. 
 
 For the purposes of this paragraph, a Party shall normally accept a declaration as to the principal place of business and the actual place of accrual of profits. Where the Party requires further proof, it shall act in accordance with its law.  
3. Each Party shall grant temporary entry to a business person seeking to engage in a business 
activity other than those set out in Appendix 14. 04(A)(1) on a basis no less favourable than that 
provided under the measures set out in Appendix 14.04(A)(3).   WT/REG165/1 
 Page 103 
 
 
4. No Party may:   
(a) As a condition for granting temporary entr y under paragraph 1 or 3, require prior 
approval procedures, petitions, labour certifica tion tests or other procedures of similar 
effect;  or 
 
(b) impose or maintain any numerical restri ction relating to temporary entry under 
paragraph 1 or 3. 
 5. Notwithstanding paragraph 4, a Party may require a business person seeking temporary entry 
under this Section to obtain a visa or its equivalent  prior to entry. The Parties shall consider the 
possibility of avoiding the imposition of the visa requirement or its elimination. 
 
Section B – Traders and Investors 
 1. Each Party shall grant temporary entry a nd provide confirming documentation to a business 
person in a capacity that is supervisory, executive or involves specialized knowledge, provided that 
the business person otherwise complies with existing immigration measures applicable to temporary 
entry, seeking to: 
 
 (a) Carry on substantial trade in goods or ser vices principally between the territory of the 
Party of which the business person is a nati onal and the territory of the other Party 
into which entry is sought;  or  
 
 (b) establish, develop, administer or provide advice or key technical services to the 
operation of an investment to which th e business person or the business person’s 
enterprise has committed, or is in the pro cess of committing, a substantial amount of 
capital. 
 2. No Party may:    (a) As a condition for granting temporary entry under paragraph 1, require labour 
certification tests or other procedures of similar effect;  or 
 
 (b) impose or maintain any numerical r estriction relating to temporary entry under 
paragraph 1. 
 
3. Notwithstanding paragraph 2, a Party may require a business person seeking temporary entry 
under this Section to obtain a visa or its equivalent  prior to entry. The Parties shall consider the 
possibility of avoiding the imposition of the visa requirement or its elimination. 
 
Section C – Intra-Company Transferees 
 1. Each Party shall grant temporary entry a nd provide confirming documentation to a business 
person employed by an enterprise who seeks to render services to that enterprise or a subsidiary or 
affiliate thereof, in the form of management or executive functions or in a capacity that involves 
specialized knowledge, provided that the busi ness person otherwise complies with existing 
immigration measures applicable to temporary entry.  A Party may require the business person to have 
been employed continuously by the enterprise for one year within the three-year period immediately 
preceding the date of the application for admission.  WT/REG165/1 
Page 104  
 
2. No Party may:  
 
 (a) As a condition for granting temporary entry under paragraph 1, require labour 
certification tests or other procedures of similar effect;  or 
 
 (b) impose or maintain any numerical r estriction relating to temporary entry under 
paragraph 1. 
 3. Notwithstanding paragraph 2, a Party may require a business person seeking temporary entry 
under this Section to obtain a visa or its equivalent  prior to entry. The Parties shall consider the 
possibility of avoiding the imposition of the visa requirement or its elimination. 
 
 
ANNEX 14.04(1) 
COUNTRY-SPECIFIC RULES FOR THE 
TEMPORARY ENTRY OF BUSINESS PERSONS 
 For Chile  
 
1. Business persons who enter Chile in any of the categories set out in Annex 14.04 shall be 
considered to engage in activities that are useful or beneficial for the country. 
 
2. Business persons who enter Chile in any of th e categories set out in Annex 14.04 shall be in 
possession of a temporary residence visa, which ma y be renewed for consecutive periods, provided 
the conditions under which it was granted are mainta ined. Such persons may not apply for permanent 
residence or change their immigration status, unless they comply with the general immigration 
requirements established in Decree Law 1.094 of 1975 ("Decreto Ley 1.094 de 1975") and Supreme 
Decree 597 of 1984 ("Decreto Supremo 597 de 1984") of th e Ministry of the Interior ("Ministerio del 
Interior").  3. Business persons entering Chile may also  obtain an identity card for foreigners. 
 
For Costa Rica  
1.  Business persons who enter Costa Rica in an y of the categories set out in Annex 14.04 shall 
be considered to engage in activities that are useful or beneficial for the country. 
 
2.  Business persons who enter Costa Rica in an y of the categories set out in Annex 14.04 shall 
be in possession of a temporary residence visa, which may be renewed for consecutive periods, provided the conditions under whic h it was granted are maintained. Such persons may not apply for 
permanent residence or change their immigration status, unless they comply with the general immigration requirements established in the Gene ral Immigration Law, Law 7033 of 4 August 1986 
("Ley General de Migración y Extranjería, Ley nú mero 7033 del 4 de agosto de 1986") and the 
Enabling Regulations ("Decreto Ejecutivo 19010 del 31 de mayo de 1989"). 
 
  For El Salvador  
 
1.  Business persons who enter El Salvador in any of the categories set out in Annex 14.04 shall 
be considered to engage in activities that are useful or beneficial for the country. 
 2.  Business persons who enter El Salvador in any of the categories set out in Annex 14.04 shall 
be in possession of a 90-day temporary business visa, which may be renewed for an equal period, to  WT/REG165/1 
 Page 105 
 
 
be issued by the Directorate General of Immigr ation ("Dirección General de Migración") indicating 
the kind of business to be carried on in the country, and the holder may only engage in that activity. Where the nature of the activity requires remaining in the country for a longer period, a temporary 
residency permit shall be granted for a period of  one year, which may be renewed for consecutive 
periods, provided the conditions under which it was granted are maintained. Such persons may not 
apply for permanent residence, unless they comply  with the general immigration requirements 
established in the Immigration Law, Legislative Decree 2722 of 19 December  1958 and amendments 
("Ley de Migración, Decreto Legislativo N° 2772,  del 19 de diciembre de 1958") and the Enabling 
Regulations ("Decreto Ejecutivo N°  33 del 9 de mayo de 1959"). 
 
For Guatemala  
1.  Business persons who enter Guatemala in an y of the categories set out in Annex 14.04 shall 
be in possession of a business visa and subject to the country’s immigration laws.  
2.  Business visas shall be granted by the Directorate General of Immigration ("Dirección 
General de Migración") or by Guatemalan consulates duly-accredited abroad.  3.  Visas granted to foreigners do not imply thei r unconditional admission into the territory of the 
Republic and shall only be affixed to valid passports  or travel documents issued by the competent 
authority.  For Honduras  
 
1.  Business persons who enter Honduras in any of the categories set out in Annex 14.04 shall be 
considered to engage in activities that are useful or beneficial for the country. 
 
2.  Business persons who enter Honduras in any of the categories set out in Annex 14.04 shall be 
in possession of a temporary residence visa, which may be renewed for con secutive periods, provided 
the conditions under which it was granted are mainta ined. Such persons may not apply for permanent 
residence or change their immigration status, unless they comply with the general immigration requirements established in the Population and Immi gration Policy Law, Decr ee 34 of 25 September 
1970 ("Ley de Población y Política Migratoria, De creto N° 34 del 25 de septiembre de 1970") and 
Resolution 8 on Procedures in respect of Immigrat ion Facilities for Foreign Investors and Business 
Persons of 19 August 1988 ("Acuerdo N° 8 sobre Procedimientos Sobre Facilidades Migratorias a 
Inversionistas y Comerciantes Extranjeros del 19 de agosto de 1988"). 
 
For Nicaragua  
 
1.  Business persons who enter Nicaragua in any of  the categories set out in Annex 14.04 shall be 
considered to engage in activities that are useful or beneficial for the country.  2.  Business persons who enter Nicaragua in any of  the categories set out in Annex 14.04 shall be 
in possession of a temporary residence visa, which may be renewed for consecutive periods of up to 
three years, provided the conditions under which it was granted are maintained. Such persons may not 
apply for permanent residence or change their immi gration status, unless they comply with the general 
immigration requirements established in the Immi gration Law, Law 153 published in Gazette 80 of 
30 April 1993 ("Ley de Migración, Ley Nº 153, La Gaceta Nº 80, 30 abril 1993") and the Law in 
respect of Alien Residents published in Gazette 81 of  3 May 1993 ("Ley de Extranjería, Ley Nº 154, 
La Gaceta Nº 81, 3 mayo 1993"). 
 
 WT/REG165/1 
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APPENDIX 14.04(A)(1) 
BUSINESS VISITORS 
 Research and design 
 - Technical, scientific and statistical research ers conducting independent research or research 
for an enterprise located in th e territory of another Party. 
 
Growth, manufacture and production 
 - Purchasing and production mana gement personnel conducting commercial transactions for an 
enterprise located in the territory of another Party. 
 
Marketing 
 - Market researchers and analysts conducting research independently or  for an enterprise 
located in the territory of another Party. 
 - Trade fair and promotional pers onnel attending a trade convention. 
 
Sales 
 
- Sales representatives and agents taking orders  or negotiating contracts for goods or services 
for an enterprise located in the territory of another Party but not  delivering goods or providing 
services. 
 
- Buyers purchasing for an enterprise locate d in the territory of another Party. 
 
Distribution 
 
- Customs brokers providing consulting services regarding the facilitation of the import or 
export of goods. 
 
After-sales service 
 
- Installers, repair and maintenance personnel,  and supervisors, possessing specialized technical 
knowledge essential to a seller's contractual ob ligation, performing services or training 
workers to perform services, pursuant to a warrant y or other service contract incidental to the 
sale of commercial or industrial equipment or  machinery, including computer software, 
purchased from an enterprise located  outside the territory of the Party into which temporary 
entry is sought, during the life of the warranty or service agreement. 
 
General service 
 
- Consultants engaging in a business activity in volving the cross-border provision of services. 
 - Management and supervisor y personnel engaging in a commercial transaction for an 
enterprise located in the territory of another Party. 
 
- Financial services personnel engaging in commercia l transactions for an enterprise located in 
the territory of another Party. 
 - Public relations and advertis ing personnel consulting with business associates, or  attending or 
participating in conventions.  WT/REG165/1 
 Page 107 
 
 
 - Tourism personnel (tour and travel agents, tour guides or tour operators) attending or 
participating in conventions or  conducting a tour that has begun in the territory of another 
Party. 
 
- Translators or interpreters performing services as employees of an enterprise located in the 
territory of another Party.  
  
APPENDIX 14.04(A)(3) 
EXISTING IMMIGRATION MEASURES 
 
For Chile : 
  Section I, paragraph 6, of Decree Law 1.094, Official Gazette 19 July 1975, the Immigration 
Law ("Decreto Ley 1.094, Diario Oficial, 19 julio  1975", Ley de Extranjería") and Section III of 
Supreme Decree 597 of the Ministry of the Interior, Official Gazette 24 November 1984, the Immigration Regulations ("Decreto Supremo 597 de l Ministerio del Interior, Diario Oficial, 
24 noviembre 1984, Reglamento de Extranjería"). 
 
For Costa Rica : 
 
 Sections II, III, IV, V, VII, VIII and X of the General Immigration Law, Law 7033 of 
4 August 1986 ("Ley General de Migración and Extr anjería, Ley número 7033 del 4 de agosto de 
1986") and the Regulations of the General I mmigration Law, Executive Decree 19010 of 31 May 
1989 ("Reglamento a la Ley General de Migraci ón y Extranjería, Decreto Ejecutivo número 19010 
del 31 de mayo de 1989"). 
 
For El Salvador : 
 
(a) The Immigration Law, Legislative Decree 2772 of 19 December 1958, published in 
Official Gazette 240, Volume 171 of 23 December 1958 ("Ley de Migración, Decreto 
Legislativo N° 2772 de 19 de diciembre de 1958, Diario Oficial Nº 240, tomo 181, 
23 diciembre 1958"); 
 
(b) the Regulations of the Immigration Law, Executive Decree 33 of 9 March 1959, 
published in Official Gazette 56, Volume  182 of 31 March 1959 ("Reglamento de la 
Ley de Migración, Decreto Ejecutivo N° 33 de 9 de marzo de 1959, Diario Oficial 
Nº 56, tomo 182, 31 marzo 1959");  and 
 
(c) the Law in respect of Alien Residents,  Legislative Decree 299 of 18 February 1986, 
published in Official Gazette 34, Volu me 290 of 20 February 1986 ("Ley de 
Extranjería, Decreto Legislativo N° 299 de  18 de febrero de 1986, Diario Oficial 
N° 34, tomo 290, 20 febrero 1986"). 
 
For Honduras : 
  The Population and Immigration Policies Law, Decree 34 of 25 September 1970 ("Ley de 
Población y Políticas Migratorias, Decreto Nº 34 del 25 de septiembre de 1970") and Resolution 8 on 
Procedures Regarding Immigration Facilities for Investors and Business People of 19 August 1998 
("Acuerdo Nº 8 sobre Procedimientos Sobre Facilid ades Migratorias a Inversionistas y Comerciantes 
Extranjeros del 19 de agosto de 1998").  
 WT/REG165/1 
Page 108  
 
For Guatemala : 
 
(a) Article 85 of the Immigration Law, published in the Official Gazette of Central 
America on 23 December 1998 ("Decreto Nº 95- 98, Diario Oficial de Centroamérica, 
23 diciembre 1998");  and 
 
(b) Article 77 of the Immigration Regula tions, Resolution 529-99, published in the 
Official Gazette of Central America on 29 July 1999 ("Acuerdo Nº 529-99, 
Reglamento de Migración, Diario Oficia l de Centroamérica, 29 julio 1999"). 
 
For Nicaragua:  
 
(a) Chapter II, Articles 7 through 40 of La w 153 of 24 February 1993, published in 
Gazette 80 of 30 April 1993 ("Ley N° 153 del 24 de febrero de 1993, La Gaceta 
Nº 80, 30 abril 1993"); 
 
(b) Article 13 of Law 154 of 10 March 1993,  published in Gazette 81 of 3 May 1993 
("Ley N° 154 del 10 de marzo de 1993, La  Gaceta Nº 81, 3 mayo 1993");  and 
 
(c) Decree 628, Nicaraguan Law on Resident Pensioners or Persons of Independent 
Means, published in Gazette 264 of 19 November 1974 ("Decreto Nº 628, Ley de 
Residentes Pensionados o Rentistas de Ni caragua, La Gaceta Nº 264, 19 noviembre 
1974"). 
  WT/REG165/1 
 Page 109 
 
 
PART FIVE.  COMPETITION POLICY 
 
CHAPTER 15.  COMPETITION POLICY 
 Article 15.01  Cooperation 
 
1.  The Parties shall ensure that the benefits of this Agreement are not undermined by anti-
competitive business practices. They shall also end eavour to work toward the adoption of common 
rules to avoid such practices.  
2.  The Parties shall endeavour to establis h mechanisms to facilitate and promote the 
development of competition policy and ensure the application of rules on free competition among and within the Parties to avoid the adverse effects of anti-competitive business practices in the free trade 
area. 
 
Article 15.02  Monopolies and State enterprises  
1.  For the purposes of this Article: 
 
 monopoly  means an entity, including a consortium or government agency, that in any 
relevant market in the territory of a Party is d esignated as the sole provider or purchaser of a good or 
service, but does not include an en tity that has been granted an exclusive intellectual property right 
solely by reason of such grant; and 
 
 non-discriminatory treatment  means the better of national treatment and most-favoured-
nation treatment, as set out in the relevant provisions of this Agreement. 
 
2.  Nothing in this Agreement shall be c onstrued to prevent a Party from designating a 
monopoly, provided its law so permits.  3.  Each Party shall adjust to the provisions of  this Agreement to ensure that any monopoly and 
State enterprise it establishes acts in a manner that is not inconsistent with the Party’s obligations 
under this Agreement and provides non-discriminator y treatment to the inv estments of investors, 
goods and service providers of another Party.  4.  This Article does not apply to procurement by governmental agencies of goods or services for 
governmental purposes and not with a view to commerc ial resale or use in the production of goods or 
the provision of services for commercial sale.  WT/REG165/1 
Page 110  
 
PART SIX.  GOVERNMENT PROCUREMENT 
 
CHAPTER 16.  GOVERNMENT PROCUREMENT 
 Article 16.01  Definitions 
 
 For the purposes of this Chapter: 
 
 entities  means all public entities of the Parti es except those listed in Annex 16.01; 
 
 government procurement  means  any type of government procurement of goods, services, or 
of a combination of goods and services, envisaged in  the respective legislation and carried out by the 
public entities of the Parties. This con cept shall include public works concessions; 
  offsets means conditions imposed or considered by an  entity prior to or in the course of its 
procurement process that encourage local developmen t or improve its Party's balance of payments 
accounts, by means of  requirements of local content, licensing of technology, investment, counter-trade or similar requirements;   privatization  means a process by means of which a public entity is released from State 
control, be it through public tendering of shares in that entity or otherwise, as provided for in the 
Parties’ applicable legislation; 
  supplier  means a person of a Party who provides goods or services under this Chapter; 
  technical specification  means a specification which sets out the characteristics of goods or 
their related processes and production methods, or the characteristics of services or their related 
operating methods, including any applicable administrative provisions. It may also include or deal exclusively with issues relating to terminology, sym bols, packaging, marking, labelling applicable to 
goods, processes, or production and operating methods; and   tendering procedures means all government procurement pr ocedures other than contracting 
on own account. 
 
Article 16.02 Objective, scope and coverage 
 
1.  The objective of this Chapter is to estab lish and maintain a single market for government 
procurement in order to maximize business opport unities for suppliers and reduce the transaction 
costs of the public and private sectors in the Parties.  2.  To attain this goal, each Party shall:  
(a) Ensure that suppliers of another Part y participate in government procurement 
processes under equal conditions; 
 
(b) ensure the principles of non-discrimin ation and transparency in government 
procurement processes, as established in this Chapter;  and 
 
(c) develop mechanisms for cooperation and technical assistance. 
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3.  Except as provided in Annexes 16.01 and 16.02, this Chapter shall apply to the government procurement processes provided for in the laws of  the Parties and procurements by their entities 
relating to:  
(a) Goods;  and  
 
(b) services, subject to Annexes I and II of Chapter 11 (Cross-Border Trade in Services). 
 4.  Notwithstanding paragraph 3(b), this Chapter does not apply to:  
(a) Subsidies or donations accorded by a Pa rty or a State enterprise, including loans, 
guarantees and insurance supported by a Party; 
 (b) government services or functions, such as law enforcement, correctional services, 
income security or insurance, social securi ty, social welfare, public education, public 
training, health, and child care;  or 
 (c) cross-border financial services.  
 
Article 16.03  General rights and obligations 
 1.  The Parties agree upon the following rights and obligations, as provided in this Chapter: 
 
(a) To apply the measures relating to governme nt procurement in such a way as to allow 
the greatest possible degree of competition, while respecting the principles of transparency and non-discrimination and the other provisions of this Chapter; 
 
(b) to promote business opportunities to enable suppliers to compete in government 
procurement, preferably on the basis of the quality-price ratio principle, provided that 
application of this principle is compatible  with the nature of the procurement in 
question. Application of this principle is intended to obtain the most efficient results 
with the financial resources allocated to the entities that tender the contracts, taking 
into account the public needs of such entities; 
(c) to ensure maximum simplicity and pub licity in the application of government 
procurement measures; 
 (d) to maintain and promote business opportun ities in government procurement processes 
for suppliers from other Parties during the implementation periods, to comply with 
the commitments arising from the interna tional agreements on this matter to which 
they are party; 
 (e) to grant equitable opportunities to su ppliers from other Parties in government 
procurement processes;  and 
 
(f) to refrain from applying measures that: 
 
(i) Are discriminatory;  
(ii) are arbitrary;  or 
 (iii) have the effect of denying equal access or opportunity to a supplier from 
another Party. 
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2. No provision of this Chapter shall prevent a Party from developing a new procurement policy, 
provided it is not inconsistent with this Chapter. 
 
Article 16.04  National treatment and non-discrimination 
 1.  With respect to government procurement carried out by entities through tendering, each Party 
shall accord to goods, services and suppliers of anot her Party treatment no less favourable than it 
accords to like goods, services and suppliers of like goods and services.  2.  Without prejudice to the above, in governme nt procurements that use procedures different 
from those referred to in paragr aph 1, the Parties shall adopt such measures as are reasonably 
available to ensure compliance with the ob ligations established in Article 16.03(1)(f). 
 3.  Each Party shall ensure that its entities do not demand offsets from suppliers of another Party 
participating in a government procurement process. 
 
4.  This Article does not apply to measures re specting customs duties or other charges of any 
kind imposed on or in connection with importation, the method of levying such duties or charges or other import regulations, including restrictions and formalities. 
 
Article 16.05  Transparency and the provision of information 
 
1. Further to Article 17.04 (Pr ovision of Information), each Party shall ensure that its entities 
effectively publish and a fford an understanding of: 
 
(a) Their respective systems of government procurement; 
 
(b) the business opportunities created by the corresponding government procurement 
processes, providing the suppliers of anot her Party with all the information necessary 
to participate in said procurements;  and 
 (c) the outcomes of government procurement processes. 
 
2.  Each Party shall ensure that contract awards  are duly based on the criteria established prior to 
the award by its contracting entities.  3.  Each Party undertakes to inform the other Par ties within not more than one year after this 
Agreement comes into force of the legislation gove rning government procurement in its territory and 
of the entities covered by this Chapter. This obligat ion extends to all changes in such information. 
 
Article 16.06  Technical specifications 
 
 Each Party shall ensure that its entities do not prepare, adopt, or apply any technical 
specification with the purpose or effect of creating unnecessary obstacles to trade. 
 
Article 16.07  Denial of benefits  
 
 Subject to prior notification and consultati on in accordance with Articles 17.04 (Provision of 
Information) and 19.06 (Consultations), a Party may deny the benefits of this Chapter to a service 
provider of another Party where the Party establi shes that the service is being provided by an 
enterprise that that has no substa ntial business activities in the territo ry of the other Party and, in 
accordance with the law of that other Party, is owned or controlled by persons of a non-Party. 
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Article 16.08  Appeal procedure 
 
 Each Party shall adopt or maintain administrative or judicial procedures that permit, at the 
request of an affected supplier from another Party,  the prompt review of administrative decisions 
affecting government procurement under this Chapter. Each Party shall ensure that such procedures 
are timely, transparent and effective and that th ey are based on the principles of non-discrimination 
and due process. 
 
Article 16.09  Modifications to coverage 
 1.  The Parties shall hold consultations at the requ est of any of them to examine the possibility of 
incorporating the entities listed in Annex 16.01 into this Chapter. 
 2.  The Parties shall approve such agreements in accordance with Article 18.01(3)(b) (Free Trade 
Commission).  Article 16.10  Privatization  
 
1.  No provision of this Chapter shall be cons trued to prevent a Party from privatizing an entity 
covered in this Chapter. In such cases, another Party may not demand compensation. 
 
2.  Privatized entities shall not be subject  to the application of this Chapter. 
 
Article 16.11  Information technology 
 
1.  The Parties shall endeavour, to the extent possible, to use electronic means of communication 
that permit the efficient publication of informa tion on government procurement, particularly on 
business opportunities offered by the entities.  2.  To obtain a wider market for government procurement, the Parties shall endeavour to implement an electronic information and intermediation system to be mandatory for their entities. The main objective of the system shall be timely pub lication of the business opportunities offered by the 
entities. 
 
Article 16.12  Committee on government procurement 
 
1.  The Parties establish a Committee on Governme nt Procurement, comprised of representatives 
of each of them, to be appointed within three months after this Agreement comes into force. 
 2.  The Committee shall examine matters relating to this Chapter and, without detriment to 
Article 18.05(2) (Committees), shall:  
(a) Unless otherwise agreed by the Parties, re view the results of the application of this 
Chapter every two years; 
 
(b) conduct consultations and studies intende d to incorporate the entities listed in 
Annex 16.01 into this Chapter; 
 
(c) promote the development and implemen tation of the electronic information and 
intermediation system referred to in Article 16.11(2); 
 
(d) coordinate exchanges of statistical in formation on government procurement;  and  
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(e) coordinate and promote the design of training programmes for the competent 
authorities of the Parties. 
 
Article 16.13  Cooperation and technical assistance 
  The Parties shall endeavour to provide each other with cooperation and technical assistance 
through the development of training programmes, in  order to afford a better understanding of their 
respective government procurement and statistical systems and greater access to their respective 
markets. 
 
Article 16.14  Relation to other chapters 
 
 In the event of any inconsistency between this Chapter and another Chapter, this Chapter shall 
prevail to the extent of the inconsistency. 
 
 
ANNEX 16.01 
ENTITIES 
 
For Chile : 
 
 (a) Contraloría General de la Repúbli ca (Comptroller General of the Republic); 
  (b) Banco Central (Central Bank);   (c) the armed forces; 
 
 (d) public order and security forces;   (e) municipalities;   (f) Consejo Nacional de Televisi ón (National Television Council); 
 
 (g) State-owned enterprises;   (h) judicial branch – courts of law;  
 (i) legislative branch – Congress; 
  (j) Tribunal Constitucional (Constitutional Court);   (k) Tribunal Calificador de Elecciones (Electoral Tribunal) ;  
 (l) Tribunales Electorales Regionales (Regional Electoral Tribunals); 
  (m) Consejo Superior de Educación (Higher Council on Education);  and 
  (n) Ministerio Público (Office of the Attorney General). 
 
For Costa Rica : 
  (a) Contraloría General de la Repúbli ca (Comptroller General of the Republic); 
 
 (b) Ministerio de Gobernación y Policía (Ministry of the Interior and Police);  WT/REG165/1 
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 (c) Ministerio de Seguridad Pública (Ministry of Public Security);   (d) Banco Central de Costa Rica (Central Bank of Costa Rica);   (e) autonomous and semi-autonomous ins titutions and all other public entities and 
companies; 
  (f) legislative branch;   (g) judicial branch; 
 
 (h) Tribunal Supremo de Elecciones (Supreme Electoral Tribunal);   (i) Defensoría de los Habitantes (Public Ombudsman);  
 (j) municipalities; 
  (k) non-governmental public entities;   (l) duty-free shops and similar entities subject to private law in their procurements;  and 
 
 (m) Consejo Superior de Educac ión (Higher Council on Education). 
 
For El Salvador : 
  (a) Corte de Cuentas de la República (National Auditor General’s Office); 
 
 (b) Banco Central de Reserva de El Salvad or (Central Reserve Bank of El Salvador); 
  (c) Ministerio de la Defensa Naci onal (Ministry of National Defence); 
  (d) Academia Nacional de Seguridad Púb lica (National Public Security Academy); 
 
 (e) Policía Nacional Civil (National Civil Police Force);   (f) municipalities;  
 (g) Dirección General de Espectáculos Púb licos, Radio and Televisión (Directorate 
General of Public Entertainm ent, Radio and Television); 
  (h) judicial branch;   (i) legislative branch; 
 
 (j) Tribunal Supremo Electoral (Supreme Electoral Tribunal);   (k) Ministerio Público (Office of the Attorney General);  
 (l) Loteria Nacional de Beneficencia (National Charitable Lottery); 
  (m) Dirección General de Correos (Directorate General of the Post Office);   (n) Comisión Ejecutiva Portuaria Autónoma, CEPA (Autonomous Port Executive 
Committee);  and WT/REG165/1 
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 (o) Comisión Ejecutiva Hidroeléctrica del Río Lempa, CEL (Río Lempa Hydroelectric 
Executive Committee). 
 
For Guatemala : 
 
 (a) Ministerio de la Defensa Naci onal (Ministry of National Defence); 
  (b) Instituto Nacional de Electrificación (National Electrification Administration);   (c) Contraloría General de Cuentas (Office of the Comptroller General); 
 
 (d) Banco de Guatemala (Bank of Guatemala);   (e) Ministerio de Gobernación (Ministry of the Interior);  
 (f) judicial branch; 
  (g) Congress;   (h) Corte de Constitucionalidad (Constitutional Court);  
 (i) Tribunal Supremo Electoral (Supreme Electoral Tribunal); 
  (j) Ministerio Público (Office of the Attorney General);   (k) Procuraduría General de la  Nación (Department of Justice); 
 
 (l) state and municipal public companies;   (m) municipalities;  and   (n) decentralized and autonomous public entities which, under their charters or bylaws or 
another legal provision, are excluded from a pplication of the procurement procedures 
established in the Government Procurem ent Law and its Regulations, Congressional 
Decree 57-92 (Ley de Contrataciones del Estado, Decreto N° 57-92 del Congreso de la República y su Reglamento). 
 
For Honduras : 
  (a) Tribunal Nacional de Elecciones (National Electoral Tribunal);   (b) State-owned public companies;  
 (c) municipalities; 
  (d) Presidencia de la República (Office of the President);   (e) Ministerio de Defensa Naciona l (Ministry of National Defence); 
 
 (f) Ministerio de Seguridad (Ministry of Security);   (g) Programa de Asistencia Familiar,  PRAF (Family Welfare Programme); 
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 (h) Suplidora Nacional de Productos Básicos, BANASUPRO, (National Supply 
Clearinghouse); 
  (i) Comité Permanente de Conti ngencias, COPECO (Standing Committee on 
Contingencies);  and 
 
 (j) public entities which, under their charte rs or another legal provision, are excluded 
from the application of government procurement procedures. 
 
 
ANNEX 16.02 
TYPES OF PROCUREMENT 
 
 The types of government procurement th at are excluded from this Chapter are: 
 
(a) Government defence contracts of a strategi c nature and other procurements related to 
national security; 
 
(b) government contracts to hire personnel as signed to perform duties inherent to the 
entities;  and 
 
(c) government procurements funded by States,  regional or multilatera l organizations or 
individuals that impose conditions inconsiste nt with the provisions of this Chapter. 
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PART SEVEN.  ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS 
 
CHAPTER 17.  TRANSPARENCY 
 Article 17.01  Definitions 
 
 For the purposes of this Chapter, an administrative ruling of general application means an 
administrative ruling or interpretation that applies to all persons and fact situa tions that fall generally 
within its ambit and that establishes a norm of conduct but does not include: 
 
(a) A determination or ruling made in an ad ministrative proceeding that applies to a 
particular person, good or service of the other Party in a specific case;  or 
 (b) a ruling that adjudicates with respect to a particular act or practice. 
 
Article 17.02  Contact points  
1. Each Party shall designate a contact point to  facilitate communications among the Parties on 
any matter covered by this Agreement.  2. On the request of a Party, the contact point shall identify the office or official responsible for 
the matter and assist, as necessary, in facilitati ng communication with the requesting Party. 
 
Article 17.03  Publication 
 
1. Each Party shall ensure that its laws, regul ations, procedures and administrative rulings of 
general application respecting any matter covered by this Agreement are promptly published or 
otherwise made available in such a manner as to en able the other Parties and interested persons to 
become acquainted with them.  2. To the extent possible, each Party shall:  
(a) Publish in advance any such me asure that it proposes to adopt;  and 
 (b) provide interested persons and the other Parties a reasonable opportunity to comment 
on such proposed measures. 
 
Article 17.04  Provision of information  
1. To the extent possible, each Party shall no tify another Party of any proposed or actual 
measure that the Party considers might affect or s ubstantially affects the other Party’s interests under 
this Agreement.  
2. On request of another Party, a Party shall promptly provide informa tion and respond promptly 
to questions pertaining to any actual or proposed measure.  3.  Any notification or information provided under this Article shall be without prejudice as to 
whether the measure is consis tent with this Agreement. 
     
Article 17.05  Guarantees of hearings, legality and due process  WT/REG165/1 
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  Each Party shall ensure that judicial and ad ministrative procedures relating to the application 
of any of the measures referred to in Article 17.03( 1) observe the guarantees of hearing, legality and 
due process enshrined in their respective la ws, in the sense of Articles 17.06 and 17.07. 
 
Article 17.06  Administrative proceedings for th e adoption of measures of general application 
 
 With a view to administering in a consistent , impartial and reasonable manner all measures of 
general application affecting matters covered by this Agreement, each Party shall ensure in its 
administrative proceedings applying measures referred  to in Article 17.03(1) to particular persons, 
goods or services of another Party in specific cases that:  
 
(a) Wherever possible, persons of another Party that are directly affected by a proceeding 
are provided reasonable notice, in accord ance with domestic procedures, when a 
proceeding is initiated, including a description of the nature of the proceeding, a 
statement of the legal authority under whic h the proceeding is initiated and a general 
description of any issues in controversy; 
 (b) such persons are afforded a reasonable opportunity to present facts and arguments in 
support of their positions prior to any fina l administrative action, when time, the 
nature of the proceeding and the public interest permit;  and 
 
(c) its procedures are in accordance with domestic law. 
 
Article 17.07  Review and appeal 
 1. Each Party shall maintain judicial or administrative tribunals or procedures for the purpose of 
the prompt review and, where warranted, correcti on of final administrative actions regarding matters 
covered by this Agreement. Such tribunals sha ll be impartial and independent of the office or 
authority entrusted with administrative enforcemen t of the law and shall not have any substantial 
interest in the outcome of the matter.  
2. Each Party shall ensure that, in any such tr ibunals or proceedings, the parties have the right 
to:  
(a) A reasonable opportunity to support or  defend their respective positions;  and  
 
(b) a decision based on the evidence and submissions. 
 3. Each Party shall ensure, subject to appeal or  further review as provided in its domestic law, 
that such decisions shall be implem ented by the offices or authorities. 
 
Article 17.08  Communications and notifications 
 
1.  For the purposes of this Agreement, all communications or notifications addressed to a Party or sent by a Party shall be made through its national Section of the Secretariat, briefly informing the 
national Sections of the other Parties of that event.  
2.  Notwithstanding paragraph 1, where a communication or notification is made under 
Chapter 19 (Dispute Settlement), a copy is to be sent to the Central American Economic Integration 
Secretariat (Secretaría de Integración Económi ca Centroamericana) (SIECA) for its files. 
 3.  Except as otherwise provided, a communication or notification shall be considered delivered 
upon its receipt by the national Section of the Party’s Secretariat. WT/REG165/1 
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CHAPTER 18.  ADMINISTRATION OF THE AGREEMENT 
 
Section A – Commission, Sub-Commission and Secretariat 
 
Article 18.01  Free Trade Commission  
1.  The Parties hereby establish the Free Trade Commission, comprising the officials mentioned 
in Annex 18.01(1) or their designees. 
 
2.  The Commission shall:  
(a) Supervise compliance with and the ade quate implementation of this Agreement; 
 
(b) evaluate the results of the implementation of this Agreement; 
 (c) resolve disputes that may arise regarding the interpretation or implementation of this 
Agreement, as established in Chapter 19 (Dispute Settlement); 
 (d) supervise the work of all committees est ablished under this Agreement, in accordance 
with Annex 18.05(3);  and  
 (e) consider any other matter that may aff ect the operation of this Agreement and any 
other matter referred to it by the Parties. 
 
3. The Commission may: 
 
 (a) Establish and delegate  responsibilities to committees; 
 
 (b) modify in fulfilment of the objectives of this Agreement: 
 
(i)  The schedule of products of a Party set out in Annex 3.04(2) (Tariff 
Elimination Programme) to include one or more goods that are excluded under 
that programme; 
 (ii) the dates set out in Annex 3.04(2) (Tariff Elimination Programme) to 
accelerate tariff elimination; 
 (iii) the rules of origin established in A nnex 4.03 (Specific Rules of Origin); 
 (iv) the Uniform Regulations; 
 
(v) Annex 9.01 (Service Sectors or Subsectors) to incorporate new services 
sectors or subsectors; 
 (vi) Annex I, II and III of Chapter 11 (Cro ss-Border Trade in Services);  and 
 
(vii) the list of entities of the Parties estab lished in Annex 16.01(Entities) to include 
one or more entities in Chapter 16 (Government Procurement); 
 
 (c) seek the advice of non-governmental persons or groups; 
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 (d) prepare and approve the regulations n eeded for implementation of this Agreement; 
and 
 
 (e) take such other action in the exercise of its functions as the Parties may agree. 
 
4. The modifications referred to in paragraph 3(b) shall be implemented by the Parties in 
accordance with Annex 18.01(4).  5. Notwithstanding paragraph 1, the Commissi on may meet and take decisions when the 
representatives of Chile and one or more Central Amer ican countries attend, to deal with matters of 
interest to those Parties, such as the accelerati on of tariff reduction, deve lopment and expansion of 
Chapter 10 (Investment) and dispute settlement, provide d the other Parties are notified sufficiently in 
advance to enable them to participate in the meeting.  6. The decisions adopted by the Commission pursua nt to paragraph 5 shall not apply to a Party 
that did not attend the meeting. 
 7. The Commission shall establish its rules and procedures. All decisions of the Commission shall be taken by consensus.  8. The Commission shall convene at least once a year, successively in each Party, in 
alphabetical order. 
 
Article 18.02  Free Trade Sub-Commission 
 
1.  The Parties hereby establish the Free Tr ade Sub-Commission, comprising the officials 
mentioned in Annex 18.02 or their designees. 
 2.  The Free Trade Sub-Commission shall:  
(a) Prepare and review the technical f iles necessary for taking decisions under the 
Agreement; 
 
(b) follow up on the decisions of the Commission;  and  
 
(c) examine any other matter that could aff ect the operation of this Agreement referred 
by the Commission. 
 
3.  The Commission may establish rules and proce dures for the adequate operation of the Free 
Trade Sub-Commission. 
 
Article 18.03  Secretariat 
 1. The Commission shall establish and oversee a Secretariat comprising national Sections. 
 2. Each Party shall:  
(a) Establish a permanent office of its Section; 
 
(b) be responsible for:  
(i) The operation and costs of its Section;  and  WT/REG165/1 
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(ii) the remuneration and payment of expe nses of panellists, their assistants, and 
experts appointed under this Agreemen t, as set out in Annex 18.03;  and 
 (c) designate an individual to serve as Secretary for its Section, who shall be responsible 
for its administration. 
 
3. The Secretariat shall: 
 
 (a) Provide assistance to the Commission and the Sub-Commission; 
 
 (b) provide administrative assistance to arbitral panels established under Chapter 19 
(Dispute Settlement), in accordance w ith procedures established pursuant to 
Article 19.12 (Model Rules of Procedure); 
 
 (c) as the Commission may direct, support the work of other committees, sub-committees 
and groups of experts estab lished under this Agreement; 
 
 (d) make communications and notifica tions as provided in Article 17.08 
(Communications and Notifications);  and 
 
 (e) carry out other functions referred by the Commission.  
Section B – Committees, Sub-Commi ttees and Groups of Experts 
 Article 18.04  General provisions 
 1.  The provisions of this section shall appl y, complementarily, to all the committees, sub-
committees and groups of experts established under this Agreement.  2.  Each committee, sub-committee and group of experts shall be comprised of representatives of each of the Parties and all decisions shall be taken by consensus.  
3.  Notwithstanding paragraph 2, a committee, sub-committee or group of experts may meet and 
take decisions without all of their members be ing present when discussing matters exclusively of 
interest to Chile and one or mo re Central American countries, pr ovided that the representatives of 
those Parties are present and that the other Part ies are notified of the agenda of the meeting 
sufficiently in advance. 
 
4.  A Party may request in writing that the Commission meet, in accordance with Article 19.07 
(Commission, Good Offices, C onciliation and Mediation), after a committee or sub-committee has 
met to hold consultations under Article 19.06 (C onsultations) but has not reached a mutually 
satisfactory settlement of the dispute. For the purposes of this paragr aph and notwithstanding 
Article 18.06(2), it shall not be necessary for the sub-committee to have re ported to the respective 
committee before a Party requests a meeting of the Commission under Article 19.07 (Commission, 
Good Offices, Conciliation and Mediation). 
 
Article 18.05  Committees 
 1.  The Commission may establish committees other than those established in Annex 18.05. 
 2.  Each committee shall:  
(a) Monitor implementation of the Chapters  of this Agreement in its sphere of 
competence;  WT/REG165/1 
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(b) examine matters submitted to it by a Party which considers that an actual or proposed 
measure by another Party affects the effective implementation of a commitment included in the Chapters of this Agre ement, in its sphere of competence; 
 
(c) request technical reports from the comp etent authorities and take actions that are 
necessary to help resolve the matter; 
 
(d) assess and recommend to the Commission proposals for modifications, corrections or 
additions to the provisions of the Chapters  of this Agreement, in its sphere of 
competence; 
 
(e) propose to the Commission the revision of actual or proposed measures that a Party 
believes could be incompatible with the obligations of this Agreement or cause 
nullification or impairment in the sen se of Annex 19.03 (Nullification and 
Impairment);  and 
 
(f) perform other tasks referred by the Commission under this Agreement and other 
instruments that derive from it. 
 3.  The Commission shall supervise the work of all the committees established pursuant to this 
Agreement. 
 4.  Each committee may establish its own rules and procedures and shall meet at the request of any of the Parties or the Commission. 
 
Article 18.06  Sub-committees  
1.  To permanently delegate its functions but  only for the purposes of specific matters in its 
sphere of competence, a committee may establish one  or more sub-committees, whose work it shall 
supervise. Each sub-committee shall have the same  functions as the committe e with respect to the 
matters referred to it. 
 
2.  Each sub-committee shall report to the comm ittee that established it on the performance of its 
functions.  3.  The rules and procedures of a sub-committ ee may be established by the same committee that 
created it. Sub-committees shall meet at the requ est of any of the Parties or the corresponding 
committee. 
 
Article 18.07  Groups of experts 
 
1.  A committee or sub-committee may establis h ad hoc groups of experts to conduct the 
technical studies necessary for its functions, whose wo rk it shall supervise. Groups of experts shall 
strictly perform the tasks referred to them, in the established terms and time limits. Groups of experts 
shall report to the committee or s ub-committee that established them. 
 2.  The rules and procedures of a group of expe rts may be established by the same committee or 
sub-committee that created it. 
  
ANNEX 18.01(1) 
MEMBERS OF THE FREE TRADE COMMISSION 
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 For the purposes of Article 18.01, the members of the Free Trade Commission are:  
(a) For Chile, the Minister of Foreign Relations or his successor;  (b) for Costa Rica, the Minister of Foreign Trade or his successor; 
 
(c) for El Salvador, the Minister of Economic Affairs or his successor;  (d) for Guatemala, the Minister of  Economic Affairs or his successor; 
 
(e) for Honduras, the Secretary of State for Industry and Trade or his successor;  and 
 
(f) for Nicaragua, the Minister of Developm ent, Industry and Trade or his successor. 
  
ANNEX 18.01(4) 
IMPLEMENTATION OF MODIFICATIONS 
APPROVED BY THE COMMISSION 
 
 The Parties shall implement the decisions of the Commission referred to in 
Article 18.01(3)(b) through the following procedure: 
 
(a) For Chile, through Implementation Agre ements ("Acuerdos de Ejecución"), in 
accordance with Article 50 No. 1, paragra ph two, of the Political Constitution of the 
Republic of Chile; 
 
(b) for Costa Rica, the agreements reached by  the Parties shall be equivalent to the 
instrument referred to in Article 121.4, pa ragraph three, of the Political Constitution 
of Republic of Costa Rica; 
 (c) for El Salvador, as provided in its legislation;  
(d) for Guatemala, as provided in its legislation; 
 (e) for Honduras, as provided in its legislation;  and  (f) for Nicaragua, as provided in its legislation. 
 
ANNEX 18.02 
MEMBERS OF THE FREE TRADE SUB-COMMISSION 
 
 For the purposes of Article 18.02, the members of the Free Trade Sub-Commission are:  
(a) For Chile, the Director General of Intern ational Economic Relations of the Ministry 
of Foreign Affairs or his successor; 
 
(b) for Costa Rica, a representative of the Mi nistry of Foreign Trade or his successor; 
 
(c) for El Salvador, the Director of Trade Po licy of the Ministry of Economic Affairs or 
his successor; 
 
(d) for Guatemala, a representative of the Mi nistry of Economic Affairs or his successor; 
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(e) for Honduras, the Director General of Ec onomic Integration and Trade Policy of the 
Department of Industry and Trade or his successor;  and 
 
(f) for Nicaragua, the Director of Integration and Agreement Administration of the 
Ministry of Development, Industry and Trade or his successor. 
 
ANNEX 18.03 
REMUNERATION AND PAYMENT OF EXPENSES 
 
1. The Commission shall establish the amounts of remuneration and expenses that will be paid 
to the panellists, their assistants and experts. 
 2. The remuneration of panellists, their assistants and experts, their travel and lodging expenses, 
and all general expenses of pane ls shall be borne equally by the Parties to the dispute. 
 
3. Each panellist, assistant and expert shall k eep a record and render a final account of the 
person’s time and expenses, and the panel shall keep a similar record and render a final account of all 
general expenses.  
ANNEX 18.05 
COMMITTEES 
 
Committee on Trade in Goods (Article 3.16)  Committee on Sanitary and Phytosanitary Measures (Article 8.11)  
Committee on Standardization, Metrology a nd Approval Procedures (Article 9.12) 
 Committee on Investment and Cross-Border Services (Article 11.14)  Committee on Air Transportation (Article 12.04)  
Committee on Government Procurement (Article 16.13) 
 
CHAPTER 19.  DISPUTE SETTLEMENT 
 
Section A – Dispute Settlement 
 
Article 19.01  Definitions 
 
 For the purposes of this Chapter: 
 
 complaining Party  means the Party that lays a complaint, which could be comprised of one 
or more Parties; 
  consulting Party  means any Party that makes consultations pursuant to Article 19.06; 
 
 Party complained against  means the Party against which a claim is made, which could be 
comprised of one or more Parties; 
  disputing Party  means the complaining Party or the Party complained against;  and 
  third Party  means a Central American country that has a substantial commercial interest in 
the dispute and that is not a Party to the dispute. WT/REG165/1 
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Article 19.02  Cooperation 
 
 The Parties shall at all times endeavour to ag ree on the interpretation and application of this 
Agreement, and shall make every attempt throug h cooperation and consulta tions to arrive at a 
mutually satisfactory resolution of any matter that might affect its operation. 
 
Article 19.03  Scope and coverage  
 Except as otherwise provided in this Agreement,  the provisions of this Chapter shall apply: 
 
 (a) With respect to the avoidance or settlement of all disputes among the Parties 
regarding the application or interp retation of this Agreement;  and 
 
 (b) wherever a Party considers that an actual or proposed measure of another Party is or 
would be inconsistent with the obligations of this Agreement or cause nullification or 
impairment in the sense of Annex 19.03. 
 
Article 19.04  Dispute settlement under the understanding 
 
1. Any matter arising under both this Agreem ent, the WTO Agreement and any agreement 
negotiated thereunder may be settled in either forum at the discretion of the complaining Party. 
 2. Once a Party has requested the establishment of  an arbitral panel under Article 19.08 or the 
establishment of a special group under Article 6 of  the Understanding, the forum selected shall be 
used to the exclusion of any other.  Article 19.05 Cases of urgency 
 
1.  In cases of urgency, including those provided fo r in paragraphs 2 and 3,  the disputing Parties 
and the arbitral panels shall make every effort to  accelerate the proceedings to the maximum extent 
possible. 
 
2.  For perishable agricultural goods, fish and fish products:   (a) A consulting Party may request in writing that the Commission meet, provided that 
the matter is not resolved in accordance with  Article 19.06, within 15 days after the 
delivery of the request for consultations;  and 
 
(b) the Party requesting the intervention of the Commission in accordance with 
Article 19.07 may request in writing that an arbitral panel be established in the event that the matter is not resolved within 15 days after the meeting of the Commission or, if no meeting was held, within 15 days after the request for a meeting of the 
Commission was delivered. 
 3.  In cases of urgency other than those provided for in paragraph 2, the Parties shall, to the 
extent possible, endeavour to reduce by half th e periods provided for Article 19.07 and 19.08 to 
request that the Commission meet and that an arbitral panel be established, respectively. 
 Article 19.06  Consultations 
 
1. Any Party may request in writing consultations  with another Party regarding any actual or 
proposed measure or any other matter that it consider s might affect the operation of this Agreement, 
in terms of Article 19.03.  WT/REG165/1 
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 2. The requesting Party shall deliver copies of the request to the other Parties, which may 
participate as consulting Parties, provided they e xpress their substantial commercial interest in the 
matter in writing, within 10 days after the request was delivered.  
3.  The consulting Parties: 
 
(a) Shall provide information to enable an examination of how the actual or proposed 
measure or any other matter might affect  the operation of this Agreement;  and 
 
(b) shall treat any confidential information exchanged in the consultations on the same 
basis as the Party providing the information. 
 
Article 19.07  Commission, good offices, conciliation and mediation 
 1.  Any Party to the consultations may request in writing a meeting of the Commission provided 
that:  
(a) A matter is not resolved pursuant to Artic le 19.06 within 30 days after the delivery of 
the request for consultations;  or 
 
(b) the Party to which the request was made did not reply within 10 days after it was 
delivered. 
 2.  A Party may also request in writing a meeti ng of the Commission pursuant to Article 18.04(4) 
(General Provisions). 
 
3.  The request referred to in paragraph 1 shall state the measure or other matter complained of 
and indicate the provisions of this Agreement that it considers relevant.  4.  Unless it decides otherwise, the Commission sh all convene within 10 days of delivery of the 
request and shall endeavour to resolve the dispute promptly. The Commission may 
  
(a) Call on such technical advisers or create  such expert groups as it deems necessary; 
 (b) have recourse to the good offices, concilia tion or mediation of a person or group of 
persons;  or 
 
(c) make such recommendations; 
  as may assist the Parties to reach a mutually satisfactory resolution of the dispute.  5. Unless it decides otherwise, the Commission shall consolidate two or more proceedings 
before it pursuant to this Article regarding the same measure. The Commission may consolidate two 
or more proceedings regarding other matters before  it pursuant to this Article that it determines are 
appropriate to be considered jointly. 
 
 
Article 19.08  Request for an arbitral panel  
1. The Party that has requested intervention by the Commission under Article 19.07 may request 
in writing the establishment of an arbitral panel where the matter has not been resolved within: 
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 (a) 30 days after the Commission has convened or, if no meeting took place, 30 days 
after the delivery of the request for a meeting of the Commission; 
 
 (b) 30 days after the Commission has c onvened, where proceedings have been 
consolidated pursuant to Article 19.07(5); or 
 
 (c) such other period as the Parties may agree.  2.  The Party that requests the establishment of an  arbitral panel shall deliver the request to the 
Party or Parties complained against and to the ot her Parties, if any, which under paragraph 1 are 
entitled to request the establishment of an arbitral pa nel. The latter shall have 10 days after receipt of 
the request to express their interest in particip ating in the arbitration as a complaining Party. 
 3. Within 15 days after delivery of the request or  within 15 days after expiry of the term referred 
to in paragraph 2, the disputing Parties shall meet  to establish an arbitral group in accordance with 
Article 19.11. The meeting shall be held with  the Party or Parties that are present. 
 4. A Party that is entitled to request the establishment of an arbitral panel under paragraph 1 and decides to abstain from participating as a compla ining Party in terms of paragraph 2, may only 
participate as a third Party before the panel, as est ablished in Article 19.13, provided it expresses its 
interest in participating within 10 days after recei pt of the request to establish the arbitral panel. 
 
5. Where a Party decides, pursuant to paragraph 4, not to participate as a third Party, it shall 
refrain thereafter, in the absence of a significant change in economic or commercial circumstances, 
from initiating regarding the same matter: 
 
 (a) A dispute settlement procedure under this Chapter;  and 
 
 (b) a dispute settlement procedure under the Understanding.  6. Unless otherwise agreed by the disputing Parti es, the arbitral panel shall be established and 
perform its functions in a manner consistent  with the provisions of this Chapter. 
 Article 19.09  Roster of panellists  
1. By agreement, the Parties shall establish a roster  of up to 60 individuals, at least five of whom 
shall be citizens of each Party and five may not be citizens of any of the Parties, who are willing and 
able to serve as panellists. 
 2. The roster may be modified every three years.  Notwithstanding, on the request of a Party, the 
Commission may review the roster of pane llists before that period has expired. 
 3.  All panellists shall meet shall meet th e qualifications set out in Article 19.10(1). 
 Article 19.10  Qualifications of panellists 
 
1.  All the panellists shall: 
 
 (a) Have expertise or experience in law, inte rnational trade, other matters covered by this 
Agreement or the resolution of disputes ar ising under international trade agreements; 
 
 (b) be chosen strictly on the basis of their objectivity, probity, reliability and sound 
judgement; 
  WT/REG165/1 
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 (c) be independent of, and not be affiliated with or take inst ructions from, any Party;  and 
 
 (d) comply with a code of conduct to be established by the Commission.  2. Individuals may not serve as panellists for a di spute in which they have participated pursuant 
to Article 19.07(4). 
 
Article 19.11  Establishment of the arbitral panel 
 
1. The following procedure shall be observed at  the meeting to establish the arbitral panel: 
 
(a) The arbitral panel shall comprise three members;  (b) the disputing Parties shall endeavour to agree on the chair;  
(c) where the disputing Parties fail to appoint a chair of the panel, one of them, chosen by 
lot, shall appoint the chair. The person designated as chair of the arbitral panel shall 
be a member of the Roster referred to in  Article 19.09 and shall not be a national of 
any of the Parties; 
 (d) each disputing Party shall select one panellis t who is a citizen of the other disputing 
Party. Notwithstanding, the disputing Parties, by mutual agreement, may provide that 
the arbitral panel be comprised of panellis ts who are not nationals of any of the 
Parties;  and  
 (e) where a disputing Party fails to select a member of the panel, such member shall be 
selected by lot from among the roster member s who are citizens of the other disputing 
Party. 
 2. If a disputing Party is comprised of two or more Central American countries, one of them, 
chosen by lot, shall represent the others in the procedure established in paragraph 1. 
 
3. Panellists shall normally be selected from th e roster. Any disputing Party may exercise a 
peremptory challenge against any individual not on th e roster who is proposed as a panellist by the 
other disputing Party.  4. If a disputing Party believes that a panellist is in violation of th e code of conduct, the 
disputing Parties shall consult and, if they agr ee, the panellist shall be removed and a new panellist 
shall be selected in accordance with this Article.  
Article 19.12  Model rules of procedure 
 
1. The Commission shall establish Model Rules of  Procedure in accordance with the following 
principles: 
 
(a) The procedures shall assure a right to a h earing before the arbitral panel as well as the 
opportunity to provide initial and re buttal submissions in writing;  and 
 
(b) the arbitral panel’s hearings, deliber ations and initial report, and all written 
submissions to and communications w ith the panel shall be confidential. 
 2. Unless the Parties otherwise agree, the ar bitral panel shall conduct its proceedings in 
accordance with the Model Rules of Procedure. 
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3. Unless the disputing Parties otherwise agree, th e terms of reference of the arbitral panel shall 
be:  
"To examine, in the light of the prov isions of the Agreement, the matter 
referred to the Commission, as set out in the request for a Commission 
meeting, and to issue the reports referred to in Articles 19.15 and 19.16". 
 
4. If a complaining Party alleges that a measure  has caused nullification or impairment in the 
sense of Annex 19.03, the terms of reference shall so indicate.  
5. If a disputing Party wishes the arbitral pane l to make findings as to the degree of adverse 
trade effects caused by a measure adopted by anot her Party that it judges not to conform with the 
obligations of this Agreement or to have caused  nullification or impairment in the sense of 
Annex 19.03, the terms of reference shall so indicate. 
 
Article 19.13  Third parties  
Upon making written notification to the disputing Par ties, a third Party shall be entitled to attend the 
hearings as provided in the Model Rules of Procedur e, to be heard by the panel and to make written 
communications to and receive written communications from the panel. Such communications shall be reflected in the final report of the arbitral panel.  Article 19.14  Information and technical advice 
 
 On the request of a disputing Party or on its own motion, the arbitral panel may seek information and technical advice from an y person or body it deems appropriate. 
 Article 19.15  Initial report 
 
1. Unless the disputing Parties otherwise agree, the arbitral panel shall issue an initial report 
based on the submissions and arguments of the Par ties and on any information before it pursuant to 
Articles 19.13 and 19.14. 
 
2. Unless the disputing Parties otherwise agree, the arbitral panel shall, within 90 days after the 
meeting to establish the panel, present to the Parties an initial report containing: 
  (a) Findings of fact, including any findings pursuant to a request under Article 19.12(5); 
 
 (b) its determination as to whether the measure at issue is or would be inconsistent with 
the obligations of this Agreement or cause nullification or impairment in the sense of 
Annex 19.03, or any other dete rmination requested in the terms of reference;  and 
 
 (c) its recommendations, if any, for resolution of the dispute. 
 
3. Panellists may furnish separate opini ons on matters not unanimously agreed. 
 4. A Party may submit written comments to the arb itral panel on its initial report within 14 days 
of presentation of the report. 
 
5. In such an event, and after considering su ch written comments, the panel, on its own motion 
or on the request of a disputing Party, may: 
 (a) Make any further examination that it considers appropriate;  and 
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 (b) reconsider its initial report.  
Article 19.16  Final report 
 
1. The arbitral panel shall communicate to the disputing Parties its final report, including any 
separate opinions on matters not unanimously agreed, within 30 days of presentation of the initial 
report, unless the disputing Parties otherwise agree.  2.  No arbitral panel may, either in its initial report or its final report, disclose which panellists 
are associated with majority or minority opinions. 
 
3. Unless the Parties otherwise agree, the fina l report shall be publis hed 15 days after it is 
communicated to the disputing Parties.  
Article 19.17  Implementation of final reports 
 
1. The final report shall be binding on the dispu ting Parties in the terms and time periods that the 
report orders. The time period for implementing the final report shall not exceed six months, calculated from the date on which the last of the dis puting Parties has been notified of the final report, 
unless they agree on a different period.  
2. Where a final report by an abitral panel finds  that the measure is non-conforming with this 
Agreement, the Party complained against shall not implement the measure or shall revoke it. 
 3. Where the final report of the arbitral pa nel determines that the measure is cause for 
nullification or impairment in the sense of Annex 19. 03, it shall determine the level of nullification or 
impairment and may suggest adjustments it considers mutually satisfactory for the disputing Parties. 
 
Article 19.18  Suspension of benefits 
 
1. Unless the disputing Parties have notified the Commission within ten days after the expiry of 
the period established the final report that the report has been implemented to their satisfaction, the 
arbitral panel shall determine whether the Party complained against has implemented  said report. 
 2.  The complaining Party may suspend appli cation of benefits under this Agreement of 
equivalent effect to the Party complained against if the arbitral panel determines: 
 
 (a) That a measure is inconsistent with th e obligations of this Agreement and the Party 
complained against fails to comply with the final report within the period that the arbitral panel has established;  or 
 
 (b) that a measure is the cause of nullifica tion or impairment in the sense of Annex 19.03 
and the disputing Parties are unable to reach  a mutually satisfactory settlement of the 
dispute within the period that the panel has established. 
 3. Benefits shall be suspended until such time as the Party compla ined against complies with the 
final report or until the Parties reach a mutually satis factory settlement of the dispute. However, if the 
Party complained against is comprised of two or mo re Parties and one of them complies with the final 
report or reaches a mutually satisfactory agreement with the complaining Party, it shall lift the 
suspension of benefits with respect to that Party.  4. In considering what benefits to suspend under this Article:  WT/REG165/1 
Page 132  
 
 (a) The complaining Party shall first seek to suspend benefits in the same sector or 
sectors as that affected by the measure or other matter that the arbitral panel has found to be inconsistent with the obligations  of this Agreement or to have caused 
nullification or impairment in the sense of Annex 19.03;  and  
 
 (b) if the complaining Party considers that it is not practicable or effective to suspend 
benefits in the same sector or sectors, it may suspend benefits in other sectors. 
 5. After benefits have been suspended in accord ance with this Article, on the written request of a  
disputing Party an arbitral panel shall be established  to determine whether there is compliance with 
the final report or whether the level of benefits suspended by the complaining Party pursuant to this 
Article is manifestly excessive. Where possible, the or iginal arbitral panel shall be reconvened for this 
purpose.  6.  The proceedings of the arbitral panel estab lished for the purposes of paragraph 5 shall be 
conducted in accordance with the Model Rules of Pr ocedure provided for in Article 19.12. The panel 
shall present its final report  within sixty days after the meeting to establish the panel or other such 
period as the disputing Parties may agree.   If the arbitral panel has been established with the same 
members that heard the dispute, it shall present its final report within 30 days of the presentation of 
the request referred to in paragraph 5.  
Section B – Domestic Proceedings and Private Commercial Dispute Settlement 
 Article 19.19 Interpretation of the agreement in judicial or administrative proceedings  
 
1.  The Commission shall endeavour to agree on an appropriate non-binding response as 
expeditiously as possible where: 
  (a) A Party requests the Commission’s opini on on a matter of interpretation or 
application of this Agreement arising from a judicial or administrative proceeding of 
another Party;  or 
 
 (b) a Party notifies it of the receipt of a request for an opinion on a matter of 
interpretation or application of this Ag reement in a judicial or administrative 
proceeding of that Party. 
 2.  The Party in whose territory the judicial or administrative body is located shall submit the 
interpretation or response of the Commission to the judicial or administrative body  in accordance with 
the rules of that body.  3.  If the Commission is unable to agree on an in terpretation, any of the Parties may submit its 
own views to the judicial or administrative body in accordance with the rules of that body. 
 
 
 Article 19.20  Private rights 
 
 No Party may provide for a right of action unde r its domestic law against another Party on the 
ground that a measure of the other Party is inconsistent with  this Agreement. 
 
Article 19.21  Alternative dispute resolution between private parties  
  WT/REG165/1 
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1. Each Party shall encourage and facilitate the u se of arbitration and other means of alternative 
dispute resolution for the settlement of internati onal commercial disputes between private parties in 
the free trade area.  2. To that end, each Party shall provide a ppropriate procedures to ensure observance of 
international  arbitration conventions it has ratified and th e recognition and enforcement of arbitral 
awards in such disputes.   3. The Commission shall establish an Adviso ry Committee on Private Commercial Disputes, 
comprising persons with expertise or experience in the resolution of private international commercial 
disputes. The Committee shall report and provide ge neral recommendations to the Commission on the 
availability, use and effectiveness of arbitration and other procedures for the resolution of such 
disputes.   
ANNEX 19.03 
NULLIFICATION AND IMPAIRMENT 
 
1. If a Party considers that any benefit it could reasonably have expected to accrue to it under 
any provision of:  
 (a) Part Two (Trade in Goods); 
 
 (b) Part Three (Technical Barriers to Trade); 
 
 (c) Chapter 11 (Cross-Border Trade in Services);  or 
 
 (d) Chapter 12 (Air Transportation); 
 
 is being nullified or impaired as a result of the application of any measure that is not 
inconsistent with this Agreement, the Part y may have recourse to dispute settlement under 
this Chapter. 
 
2. A Party may not invoke:   (a) Paragraph 1(a) or (b), to the extent that the benefit arises from any cross-border trade 
in services provision of Part Two (Trade in Goods) or Three (Technical Standards);   
or 
 (b) paragraph 1(c);  
 with respect to any measure subject to an exception under Article 20.02 (General Exceptions). 
 
3. To determine the elements of nullification or  impairment, the Parties may take into account 
the principles deriving from case law on Artic le XXIII, paragraph 1(b), of the GATT 1994. 
 
CHAPTER 20.  EXCEPTIONS 
 
Article 20.01  Definitions  
 For the purposes of this Chapter: 
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 international capital transactions  means "international capital transactions" as defined 
under the Articles of Agreement of the International Monetary Fund;   Fund means the International Monetary Fund; 
 
 payments for current international transactions  means "payments for current international 
transactions" as defined under the Articles of Ag reement of the International Monetary Fund; 
  tax convention  means a convention for the avoidance of double taxation or other 
international taxation agreement or arrangement; and 
 
 transfers mean international transactions a nd transfers and related payments. 
 
Article 20.02  General exceptions 
 1. Article XX of the GATT 1994 and its interpreta tive notes are incorporated into and made part 
of this Agreement for the purposes of:  
(a) Part Two (Trade in Goods), except to the exte nt that a provision of that Part applies to 
services or investment; 
 
(b) Part Three (Technical Barriers to Trade), ex cept to the extent that a provision of that 
Part applies to services or investment; 
 (c) Chapter 15 (Competition Policy), except to th e extent that a provision of that Chapter 
applies to goods;  and 
 
(d) Chapter 16 (Government Procurement), except to the extent that a provision of that 
Chapter applies to goods. 
 2. Article XIV (a), (b) and (c) of GATS is incorpor ated into and made part of this Agreement for 
the purposes of: 
 
(a) Part Two (Trade in Goods), to the extent  that a provision of that Part applies to 
services;  
 (b) Part Three (Technical Barriers to Trade); 
 
(c) Chapter 11 (Cross-Border Trade in Services);   (d) Chapter 12 (Air Transportation);  (e) Chapter 13 (Telecommunications); 
 
(f) Chapter 14 (Temporary Entry of Business Persons);  (g) Chapter 15 (Competition Policy), to the extent  that a provision of that Chapter applies 
to services;  and 
 
(h) Chapter 16 (Government Procurement), to th e extent that a provision of that Chapter 
applies to services. 
 
 
  WT/REG165/1 
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Article 20.03 National security 
 
 Nothing in this Agreem ent shall be construed: 
 
(a) To require a Party to furnish or allo w access to any information the disclosure of 
which it determines to be contrary to its essential security interests; 
 (b) to prevent a Party from taking any ac tions that it considers necessary for the 
protection of its essential security interests: 
 
(i) Relating to the traffic in arms, am munition and implements of war and to 
such traffic and transactions in other goods, materials, services and technology undertaken directly or indirectly for the purpose of supplying a military or other security establishment; 
 
(ii) taken in time of war or other cases of serious international tension;  or 
 (iii) relating to the implementation of nati onal policies or international agreements 
respecting the non-proliferation of nuclear weapons or other nuclear 
explosive devices;  or 
 
(c) to prevent a Party from taking action in pursuance of its obligations under the United 
Nations Charter for the maintenance of international peace and security. 
 
Article 20.04  Balance of payments 
 1. Nothing in this Agreement sh all be construed to prevent a Party from adopting or maintaining 
measures that restrict transfers where the Party e xperiences serious balance of payments difficulties, 
or the threat thereof, and such restric tions are consistent with this Article. 
 2. As soon as practicable after a Party imposes a measure under this Article, in accordance with 
its international obligations, the Party shall: 
 
 (a) Submit any restrictions on current account  operations to the Fund for review under 
Article VIII of the Articles of Agreemen t of the International Monetary Fund; 
 (b) enter into good faith consultations with the Fund on economic adjustment measures 
to address the fundamental underlying economic problems causing the difficulties; 
and  
 (c) adopt or maintain economic policies consistent with such consultations. 
  
3. A measure adopted or maintained under this Article shall: 
 
 (a) Avoid unnecessary damage to the commerc ial, economic or financial interests of 
another Party; 
 
(b) not be more burdensome than necessary to deal with the balance of payments 
difficulties or threat thereof; 
 (c) be temporary and be phased out progressively as the balance of payments situation 
improves;  
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(d) be consistent with paragraph 2(c) a nd with the Articles of Agreement of the 
International Monetary Fund;  and 
 (e) be applied on a national treatment or  most-favoured-natio n treatment basis, 
whichever is better. 
 
4. A Party may adopt or maintain a measure under this Article that gives priority to services that are essential to its economic programme, provided th at the Party does not impose a measure for the 
purpose of protecting a specific industry or sect or, unless the measure is consistent with 
paragraph 2(c) and with Article VIII(3) of the Artic les of Agreement of the International Monetary 
Fund. 
 5. Restrictions imposed on transfers:  
(a) Where imposed on payments for current inte rnational transactions, shall be consistent 
with Article VIII(3) of the Articles of Agre ement of the International Monetary Fund; 
 (b) where imposed on international capital tr ansactions, shall be consistent with 
Article VI of the Articles of Agreement of  the International Monetary Fund and be 
imposed only in conjunction with meas ures imposed on current international 
transactions under paragraph 2(a);  and 
 
(c) may not take the form of tariff surc harges, quotas, licences or similar measures. 
 
Article 20.05  Exceptions to the disclosure of information 
  Nothing in this Agreement sha ll be construed to require a Part y to furnish or allow access to 
information the disclosure of which would impede co mpliance with or be contrary to its Constitution 
or laws protecting personal privacy or the financia l affairs and bank accounts of individual customers 
of financial institutions. 
 
Article 20.06  Taxation 
 
1. Except as set out in this Article and Article 20.06, nothing in this Agreement shall apply to 
taxation measures.  2. Nothing in this Agreement shall affect the rights and obligations of any Party under any tax 
convention. In the event of any inconsistency betw een this Agreement and any such convention, that 
convention shall prevail to the extent of the inconsistency.  3. Notwithstanding paragraph 2: 
 
 (a) Article 3.03 (National Treatment) and such  other provisions of this Agreement as are 
necessary to give effect to that Article sh all apply to taxation measures to the same 
extent as does Article III of the GATT 1994;  and 
 
 (b) Article 3.14 (Export Taxes) shall apply to taxation measures. 
 
4. For the purposes of this Article, tax measures  do not include: 
  (a) A "customs duty" as defined in Article 2. 01 (Definitions of General Application);  or 
 (b) the measures listed in exceptions (b ), (c) and (d) of that definition. 
  WT/REG165/1 
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ANNEX 20.06 
DOUBLE TAXATION 
 1. The Parties endeavour to conclude bilatera l agreements to avoid double taxation within a 
reasonable time after the date that th is Agreement enters into force. 
 2. The Parties agree that upon conclusion of a bila teral agreement to avoid double taxation, they 
shall exchange letters setting out the relationship between the bilate ral agreement and Article 20.06. 
 
CHAPTER 21.  FINAL PROVISIONS 
 Article 21.01  Amendments 
 1. Notwithstanding Articles 18.01(5) (Free Trade Commission) and 21.03(2), the Parties may 
agree on any modification of this Agreement.  2. When so agreed and approved in accordance w ith the applicable legal procedures of each 
Party, a modification shall enter into force and c onstitute an integral part of this Agreement. 
 
Article 21.02  Reservations  
 This Agreement shall not be subject to r eservations or interpretative statements on the 
occasion of its ratification. 
  
Article 21.03  Duration and entry into force  
 
1. This Agreement shall have an indefinite dura tion and shall enter into force in Chile and each 
Central American Country on the thirtieth day af ter the date on which they have exchanged their 
instruments of ratification certifying the completi on of the necessary legal procedures and formalities. 
 
2 For this Agreement to become operative betw een Chile and each Central American country, 
the instruments of ratification shall state that the legal procedures and forma lities have concluded with 
respect to a bilateral protocol that:  
(a) Contains Annex 3.04(2) (Tariff Elimin ation Programme), relating to the Tariff 
Elimination Programme between Chile and that Central American country; 
 
(b) contains Section C of Annex 4.03 (Speci fic Rules of Origin), applicable between 
Chile and that Central American country; 
 
(c) contains Annexes I, II and III of Chapter 11 (Cross-Border Trade in Services), 
relating to the reservations and restrictions on cross-border services applicable 
between Chile and that Central American country; 
 
(d) contains Annexes 3.08 (Customs Valuati on), 3.10(6) (Import and Export Restrictions) 
and 16.01 (Entities), where pertinent;  and 
 
(e) refers to other matters agreed upon by the Parties. 
 3.  The protocols signed under paragraph 2 shall c onstitute an integral part of this Agreement. 
 
Article 21.04  Annexes WT/REG165/1 
Page 138  
 
  The Annexes to this Agreement constitute an integral part of this Agreement. 
 
Article 21.05  Withdrawal 
 1. Any Party may withdraw from this Agreement.  Provided that Chile is not the Party that 
withdraws, the Agreement shall remain in force for the remaining Parties. 
 2. Withdrawal shall become effective 180 days after the other Parties are notified, unless the 
Parties agree to a different period.  
 Done  at Guatemala City on 19 October 1999 in six equally authentic originals. 
 
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