WT/REG297/1/Add.1  
3 June 2013  
(13-2874)  Page: 1/3  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN GUATEM ALA AND THE SEPARATE CUSTOMS  
TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU  
(GOODS AND SERVICES) 
REPORT BY THE SECRETARIAT 
Addendum 
 The following information is to be added to the Factual Presentation of the Free Trade 
Agreement between Guatemala and the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu (goods and services):  
_______________ 
  
4.3.2 National and MFN Treatment 
 After paragraph 4.15 
 
1.1.  In maritime transport, the Parties shall gran t in their ports, to each other’s vessels, the same 
treatment as that rendered to their own vessels . This provision does not apply to shipping 
activities legally reserved by the Parties for their own vessels, such as towing and pilotage. 
National treatment will also be granted to the es tablishment and operations of shipping companies, 
shipping agents and freight forwarders (Article 5). 
1.2.  In the Air Services Agreement, the laws and regulations of one Party on entry, stay and 
departure of passengers, crew and cargo includin g mail, regarding immigration, customs, currency 
and health and quarantine shall apply to the passengers, crew and cargo including mail carried by the designated airline of the other Party while they are in the said Party, without giving 
preferences to their own or other airline over a de signated airline engaged in similar international 
air transport. The Parties accord each others' airlines the right to sell and market international air services and related products (directly or through agents and other intermediaries of the airline’s 
choice), including the right to establish offices, both on-line and off-line (Article 14.2). User 
charges imposed by the competent authorities shall be assessed on the airline of the other Party in 
terms not less favorable than the most favorable terms available to any other airline at the time the charges are assessed.  
4.3.6 Senior Management and Board of Directors 
 After paragraph 4.26 
 
1.3.  Under the Air Services Agreement, the Partie s shall permit designated airlines to bring and 
maintain foreign employees who perform managerial, commercial, technical, operational and other specialist duties, consistent with the laws and regulations of the receiving Party concerning entry, 
residence and employment (Article14.3). WT/REG297/1/Add.1 
 
- 2 - 
 
4.5.1 Domestic Regulation 
After paragraph 4.58  
1.4.  In the Air Services Agreement, the Parties agree to give particular attention to tariffs which 
may be objectionable because they appear unreasonably discriminatory, unduly high or restrictive 
because of the abuse of a dominant position, artificially low because of direct or indirect subsidy or 
support, or predatory. They also agree that designated airlines shall have a fair and equal opportunity to compete in providing the internationa l air transportation and they endeavor to take 
action to eliminate all forms of discrimination and uncompetitive practices (Article 11).  
4.6.1 Air and Maritime Transportation 
 After paragraph 4.65 
 
1.5.  Under the Maritime Transport Agreement which entered into force on 22 September 2005, the Parties agree to: (i) encourage the participatio n of their vessels in maritime transport between 
their ports and not to prevent vessels, flying other flags, to participate in maritime transport 
between their ports and ports of third parties under their respective rules and; (ii) to cooperate to 
eliminate obstacles which might impede the deve lopment of maritime trade between their ports 
and interfere with activities connected with that trade (Article 3.1).
1 Shipping companies from third 
parties or vessels flying their flags may participate in the transport of goods in the framework of bilateral trade between the Parties. Furthermore, the Parties endeavor to implement the relevant 
international instruments concerning safety of vessels, protection of the marine environment and 
the living and working conditions of seamen (Article 3.2 and 3). The shipping companies operating 
in the Parties shall be entitled to establish functioning representation (Article 6). The Parties shall facilitate and expedite customs, health and other administrative formalities applicable in their ports 
and facilitate the use of available port reception facilities (Article 7).  
1.6.  The Maritime Transport Agreement also contains provisions on the recognition of vessel’s 
(Article 8) and crew members’ documents (Article 9), and the disembarkment of crew members 
(Article 10). Article 11 concerns migratory permits which inter alia allow crew members of a Party 
the right to enter or transit the other Party, to join their vessel, with the consent of the relevant authorities of that other Party. No visa will be required. Furthermore, there are special provisions for when crew members disembark for reasons of health, or other valid reasons and in cases 
where crew members are from third parties. Notwit hstanding articles 9, 10 and 11, the applicable 
laws and regulations of the Parties concerning entr y, stay and termination of stay of crew from 
third parties remain in force and do not restrict the right of either Party to refuse entry for a crew 
member they consider undesirable (Article 12). 
1.7.  Under the Air Services Agreement which entered into force on 14 August 2007, to operate 
international air services on specified routes
2, the airlines(s) designated by each Party shall enjoy 
the right: (i) to fly without landing over the other Party; (ii) to make stops in the other Party for 
non-traffic purposes and; (iii) to make stops at the point(s) on the route(s) specified for the purpose of taking on board and discharging international traffic in passengers, cargo or mail separately or in combination.
3 Non-designated airlines of each Party shall enjoy the rights specified 
in (i) and (ii) (Article 2.2, 2.3). Nothing in Arti cle 2.2 shall be deemed to grant to the designated 
airlines the privilege of taking on board, in  the other Party, passengers, cargo and mail for 
remuneration and destined for another point in that Party. The Parties shall have the right to 
designate in writing to the other Party, one or many  airlines to operate the agreed services and to 
withdraw or alter such designation. They sha ll grant the appropriate operating authorization 
provided that: (i) the said airline has its principa l place of business and permanent residence in the 
designating Party; (ii) is under effective regulatory control of the designating Party; (iii) the 
designating Party is in compliance with the provisions of Article 7 (Operational security) and 8 (Aviation security) of the Air Services Agreement; and (iv) the designated airline is qualified to 
meet other conditions prescribed under the laws and regulations normally applied to the operation 
of international air transport services by the Party receiving the designation (Article 3). In Article 
                                               
1 Vessels, ports and crew members of a Party are defined respectively in Article 1 of the Maritime 
Transport Agreement. 
2 The specified routes for both Parties are define d in the Annex to the Air Services Agreement. 
3 Air services, and designated airline are define d in Article 1 of the Air Services Agreement. WT/REG297/1/Add.1 
 
- 3 - 
 
4, consultations between the aeronautical authorities on withholding, revocation and limitation of 
authorization are foreseen, unless safety or security requires action.  
1.8.  The laws and regulations of the Party regula ting entry and departure of aircraft engaged in 
international air services or the operation and navigation of such aircraft in that Party shall be 
applied to all aircraft of the designated airline of the other Party. Passengers, baggage, cargo and 
mail will only be subject to simplified control and baggage and cargo in direct transit shall be exempt from customs and similar taxes (Article 5). 
1.9.  The Agreement also contains provisions on customs duties whereby, on the basis of 
reciprocity, the Parties shall exempt a designated  airline of the other Party from customs duties, 
excise taxes, inspection fees and other duties and charges not based on the cost of services 
provided in connection with the operation or servicing of aircraft of the designated airline. The 
exemptions granted by a Party shall apply to the items
4: (i) introduced in the Party by or on behalf 
of the designated airline; (ii) retained on board the aircraft upon arrival or leaving the other Party and; (iii) taken on board the aircraft and intended for use in operating the agreed services, 
provided the ownership is not transferred in the said Party (Article 10).  
1.10.  Under Article 14, each Party shall permit designated airlines to use the services and 
personnel of other organizations, companies or ai rlines authorized to provide that service and 
subject to applicable safety provisions, incl uding ICAO Standards and Recommended Practices 
(SARPs); the designated airline may choose am ong competing providers of ground handling 
services.  
1.11.  There are also regulations on the recognition of certificates (Article 6), operational safety 
(Article 7), aviation security (Article 8), and capacity (Article 12). 
5.2. Current Payments and Capital movements After paragraph 5.4  
1.12.  Under the Maritime Transport Agreement, th e Parties shall grant to each other’s shipping 
companies the right to free transfer, in converti ble currency at the prevailing exchange market 
rates, of all revenues earned by those companies from activities covered by the Agreement. No 
charges other than normal bank charges will be applicable to such transfers (Article 4). 
1.13.  Under the Air Services Agreement, the Parties shall permit each other’s airlines to convert 
and transmit abroad to the airlines’ choice of State, on demand, all local revenues from the sale of air transport services and associated activities dire ctly linked to the air transport in excess of the 
sums locally disbursed, with conversion and re mittance permitted promptly without restriction, 
discrimination or taxation at the exchange applicable as of the date of the request (Article 14.1). 
__________  
                                               
4 Services on arrival, on aircraft, fuel, lubricat ing oils, consumable technical supplies, spare parts 
including engines, regular aircraft equi pment, aircraft stores an d other items intended for use or used solely in 
connection of the servicing operation.