WT/REG359/3  
 
11 August 2016 
(16-4338) Page: 1/2 
Committee on Regional Trade Agreements  Original: English  
 
FREE TRADE AGREEMENT  BETWEEN  THE REPUBLIC OF KORE A AND AUSTRALIA  
(GOODS AND SERVICES ) 
QUESTIONS AND REPLIE S 
The f ollowing communication, dated 11 August  2016, is being circulated at the request of 
the delegations of  the Republic of Korea and Australia . 
 
 This document reproduces the follow -up question s addressed to the Parties following 
the 81st Session of the CRTA and the responses submitted.  
_______________  
 
Questions from the delegation of the European Union  
 
1.1.  First, while we appreciate the replies recei ved to the questions about origin 
verification - which seem to imply a broader range of discretion on the part of the 
importing party's customs authorities - we would like to know whether each party 
intends to conduct the origin verification primarily base d on the respective legal 
framework and/or domestic legislation. Also, could the Parties clarify what kind of 
assistance the importing party is expected to request from the customs administration 
in practical terms (e.g. whether it is limited to the verifi cation of the validity of a 
Certificate of Origin or does it aim at a broader cooperation for customs)?  
 The Agreement includes specific procedures for origin verification in Section B of Chapter 3, 
more specifically in Article 3.23, and  origin verificati on action is taken on the basis of domestic 
legislative and administrative arrangements within the limits established by the Agreement . 
 
 At present, the Parties do not have concrete answers to the second question since the 
Agreement does not specify the s cope or extent of the requests and there have been no relevant 
cases.  
 
1.2.  Second, with reference to the Australian reply on customs ex officio action on IPR, 
the EU notes that this is different from what Australia replied in the framework of its 
TPR held last  year. At the time, it was explained that Australian customs can only act ex 
officio under certain, very restricted situations, and in most cases the right holder needs 
to submit notice (via the courts). The wording of the Agreement (Article 13.9, point 21 : 
"Each Party shall provide that its customs authorities may initiate border measures 
ex officio  with respect to imported merchandise that is suspected of being counterfeit or 
confusingly similar trademark goods, or pirated copyright goods") seems to be 
indicating something more comprehensive than simply "a false trade description." 
Therefore, we would like to ask Australia to further clarify this aspect.  
 Australian customs officials may initiate border measures in respect of suspected counterfeit 
trademar k, or pirated copyright goods either ex -officio, or pursuant to the Trade Marks Act 1995  
or the Copyright Act 1968 . As noted Article 13.9 of KAFTA provides "Each Party shall provide that 
its customs authorities may initiate border measures ex officio  with respect to imported 
merchandise that is suspected of being counterfeit or confusingly similar trademark goods, or 
pirated copyright goods". Article 13.9 is drafted to provide flexibility for both parties, with regard 
to implementation . Any action initiated  by the Australian Department of Immigration and Border WT/REG359/3  
 
- 2 - 
 
  Protection under the Commerce (Trade Descriptions ) Act 1905  satisfies the obligation imposed by 
Article 13.9.  
 
1.3.  Third, the EU also notes that the Customs Administration and Trade Facilitation 
chapter c overs a rather limited number of issues. The EU would like to know why 
provisions on fees and Authorized Economic Operators have not b een included in the 
Agreement.  
 At the time of negotiating KAFTA, the parties did not see the need to cover authoriz ed 
economic operators (AEOs).  At that stage, for example, Australia did not have such a system and 
did not see the need to have it reflected in the text of the agreement.  
 
 Provisions on fees were not included in the Customs Administration and Trade Facilitatio n 
Chapter since those provisions are covered by Article 2.8 of the Trade in Goods Chapter.  
 
__________