AGREEMENT BETWEEN JAPAN AND THE REPUBLIC OF PERUFOR AN ECONOMIC PARTNERSHIP
Table of Contents
Preamble
Chapter 1

General Provisions

Article 1

Establishment of a Free Trade Area

Article 2

Relation to Other Agreements

Article 3

Regional and Local Government

Article 4

General Definitions

Article 5

Transparency

Article 6

Public Comment Procedures

Article 7

Confidential Information

Article 8

Review and Appeal

Article 9

Measures against Corruption

Article 10

General Exceptions

Article 11

Security Exceptions

Article 12

Taxation

Article 13

Temporary Safeguard Measures

Article 14

Commission

Article 15

Contact Points

Article 16

Implementing Agreement

Chapter 2

Trade in Goods

Section 1

General Rules

Article 17

Scope of Application

Article 18

Definitions

Article 19

Classification of Goods

Article 20

National Treatment

Article 21

Elimination or Reduction of Customs Duties

Article 22

Non-Tariff Measures

Article 23

Import Licensing- 1 -Article 24

Administrative Fees and Formalities

Article 25

Export Duties, Fees or Other Charges

Article 26

Customs Valuation

Article 27

Agricultural Export Subsidies

Article 28

Price Band System

Section 2

Safeguard Measures

Article 29

General Provisions

Article 30

Bilateral Safeguard Measures

Article 31

Conditions and Limitations

Article 32

Investigating Procedures

Article 33

Provisional Bilateral Safeguard Measures

Article 34

Notification

Article 35

Consultations and Compensation

Article 36

Review

Section 3

Other Provisions

Article 37
Chapter 3

Sub-Committee on Trade in Goods

Rules of Origin

Article 38

Definitions

Article 39

Originating Goods

Article 40

Wholly Obtained Goods

Article 41

Qualifying Value Content

Article 42

Non-Qualifying Operations

Article 43

Accumulation

Article 44

De Minimis

Article 45

Unassembled or Disassembled Goods

Article 46

Fungible Goods or Materials

Article 47

Sets

Article 48

Accessories, Spare Parts and Tools

Article 49

Packaging Materials and Containers for
Retail Sale

- 2 -Article 50

Packing Materials and Containers for
Shipment

Article 51

Indirect Materials

Article 52

Consignment Criteria

Article 53

Proofs of Origin

Article 54

Certificate of Origin

Article 55

Certificate of Origin Issued
Retrospectively

Article 56

Issuance of a Duplicate Certificate ofOriginArticle 57

Origin Declaration

Article 58

Approved Exporter

Article 59

Notifications

Article 60

Claim for Preferential Tariff Treatment

Article 61

Obligations Related to Importations

Article 62

Validity of Proof of Origin

Article 63

Supporting Documents

Article 64

Preservation of Documents and Records

Article 65

Minor Errors

Article 66

Verifications Process

Article 67

Penalties

Article 68

Confidentiality

Article 69

Sub-Committee on Rules of Origin

Article 70

Operational Procedures

Article 71

Miscellaneous

Article 72

Transitional Provisions for Goods inTransit or Storage

Chapter 4

Customs Procedures and Trade Facilitation

Article 73

Scope of Application

Article 74

Objectives

Article 75

Definition- 3 -Article 76

Transparency

Article 77

Information and Communications Technology

Article 78

Risk Management

Article 79

Customs Clearance

Article 80

Separate and Expedited Customs Procedures
for Shipment

Article 81

Advance Rulings

Article 82

Review

Article 83

Customs Cooperation and Exchange ofInformation

Article 84

Penalties

Article 85

Sub-Committee on Customs Procedures andTrade Facilitation

Chapter 5

Sanitary and Phytosanitary Measures

Article 86

Scope of Application

Article 87

Reaffirmation of Rights and Obligations

Article 88

Enquiry Points

Article 89

Sub-Committee on SPS Measures

Chapter 6

Technical Regulations, Standards andConformity Assessment Procedures

Article 90

Scope of Application

Article 91

Objectives

Article 92

Definitions

Article 93

Reaffirmation of Rights and Obligations

Article 94

International Standards

Article 95

Technical Regulations

Article 96

Conformity Assessment

Article 97

Transparency

Article 98

Technical Cooperation- 4 -Article 99

Sub-Committee on Technical Regulations,Standards and Conformity Assessment
Procedures

Article 100
Chapter 7

Information Exchange

Cross-Border Trade in Services

Article 101

Scope of Application

Article 102

Definitions

Article 103

Subsidies

Article 104

National Treatment

Article 105

Most-Favored-Nation Treatment

Article 106

Market Access

Article 107

Local Presence

Article 108

Non-Conforming Measures

Article 109

Notification

Article 110

Transparency

Article 111

Domestic Regulation

Article 112

Recognition

Article 113

Payments and Transfers

Article 114

Implementation

Article 115

Denial of Benefits

Chapter 8

Telecommunications Services

Article 116

Scope of Application

Article 117

Definitions

Article 118

Access and Use

Article 119

Number Portability

Article 120

Competitive Safeguards

Article 121

Treatment by Major Suppliers

Article 122

ResaleArticle 123

Interconnection

Article 124

Provisioning and Pricing of Leased Circuit
Services- 5 -Article 125

Independent Telecommunications Regulatory
Body

Article 126

Universal Service

Article 127

Public Availability of Licensing Criteria

Article 128

Allocation and Use of Scarce Resources

Article 129

Transparency

Article 130

Settlement of Telecommunications Disputes

Article 131

Relation to International Organizations

Article 132

Relationship to Other Chapters

Chapter 9

Entry and Temporary Stay of Nationals for
Business Purposes

Article 133

General Principles

Article 134

Scope of Application

Article 135

Definitions

Article 136

Grant of Entry and Temporary Stay

Article 137

Provision of Information and Facilitationof Procedure

Article 138

Sub-Committee on Entry and Temporary Stayof Nationals for Business Purposes

Article 139

Cooperation

Article 140

Dispute Settlement

Article 141

Immigration Measures

Article 142

Transparency

Chapter 10

Government Procurement

Article 143

Scope of Application

Article 144

Definitions

Article 145

National Treatment and Non-Discrimination

Article 146

Rules of Origin

Article 147

Valuation of Contracts

Article 148

Prohibition of Offsets

Article 149

Technical Specifications- 6 -Article 150

Tendering Procedures

Article 151

Qualification of Suppliers

Article 152

Notice of Intended Procurement

Article 153

Notice of Planned Procurement

Article 154

Time-Limits for Tendering

Article 155

Tender Documentation

Article 156

Awarding of Contracts

Article 157

Limited Tendering

Article 158

Transparency of Procurement Information

Article 159

Challenge Procedures

Article 160

Use of Electronic Means in Government
Procurement

Article 161

Exceptions

Article 162

Rectifications or Modifications

Article 163

Privatization of Procuring Entities

Article 164

Denial of Benefits

Article 165

Further Negotiation

Article 166

Sub-Committee on Government Procurement

Chapter 11Intellectual Property Rights

Article 167

General Provisions

Article 168

National Treatment

Article 169

Most-Favored-Nation Treatment

Article 170

Streamlining and Harmonization ofProcedural Matters

Article 171

Acquisition and Maintenance ofIntellectual Property Rights

Article 172

Transparency

Article 173

Promotion of Public Awareness Concerning
Protection of Intellectual Property

Article 174

Patents

Article 175

Industrial Designs- 7 -Article 176

Trademarks

Article 177

Geographical Indications

Article 178

Copyright and Related Rights

Article 179

Protection of Undisclosed Information

Article 180

Unfair Competition

Article 181

Enforcement – General

Article 182

Enforcement – Border Measures

Article 183

Enforcement – Civil Remedies

Article 184

Enforcement – Criminal Remedies

Article 185

Internet Service Providers

Article 186

Cooperation

Article 187

Sub-Committee on Intellectual Property
Rights

Article 188
Chapter 12

Other Considerations

Competition

Article 189

Anticompetitive Activities

Article 190

Cooperation on Controlling Anticompetitive
Activities

Article 191

Non-Discrimination

Article 192

Procedural Fairness

Article 193

Transparency

Article 194

Non-Application of Paragraph 1 of Article
7

Chapter 13

Improvement of the Business Environment

Article 195

Basic Principles

Article 196

Sub-Committee on Improvement of theBusiness Environment

Article 197

Liaison Office

Article 198

Consulting Fora

Article 199

Implementation of the Decisions of the
Sub-Committee- 8 -Chapter 14

Cooperation

Article 200

Basic Principles

Article 201

Areas and Forms of Cooperation

Article 202

Implementation

Article 203

Sub-Committee on Cooperation

Chapter 15

Dispute Settlement

Article 204

Scope of Application

Article 205

Cooperation

Article 206

Good Offices, Conciliation, or Mediation

Article 207

Choice of Forum

Article 208

Consultations

Article 209

Establishment of Arbitral Tribunals

Article 210

Composition of the Arbitral Tribunal

Article 211

Qualifications of Arbitrators

Article 212

Functions of Arbitral Tribunals

Article 213

Proceedings of the Arbitral Tribunal

Article 214

Information in the Procedure

Article 215

Consolidation of Proceedings

Article 216

Award of the Arbitral Tribunal

Article 217

Suspension and Termination of Procedure

Article 218

Implementation of the Award

Article 219

Non-Implementation – Suspension ofBenefits

Chapter 16

Final Provisions

Article 220

Annexes, Appendices and Notes

Article 221

Table of Contents and Headings

Article 222

Entry into Force

Article 223

Amendments

Article 224

Termination

Article 225

Authentic Texts- 9 -Annex 1 referred to in Chapter 2

Schedules in relation
to Article 21

Annex 2 referred to in Chapter 2

Measures of Peru in
relation to Article 20
and Article 22

Annex 3 referred to in Chapter 3

Product Specific Rules

Annex 4 referred to in Chapter 3

Proofs of Origin

Annex 5 referred to in Chapter 7
Annex 6 referred to in Chapter 7
Annex 7 referred to in Chapter 7

Financial Services

Annex 8 referred to in Chapter 9

Specific Commitments
for Entry and Temporary
Stay of Nationals for
Business Purposes

Annex 9 referred to in Chapter 10

Government Procurement

Annex 10 referred to in Chapter 11 Geographical
Indications for Wines
and Spirits- 10 -

Preamble
Japan and the Republic of Peru (hereinafter referred
to as “Peru”), hereinafter collectively referred to as the“Parties” and individually referred to as the “Party”:
Committed to strengthen the longstanding friendshipand strong economic and political relations that havedeveloped through many years of mutually beneficial
cooperation and growing trade and investment between theParties;
Realizing that enhancing economic ties between theParties would contribute to increasing trade and investment
flows across the Pacific;
Convinced that this Agreement would open a new era forthe relationship between the Parties;
Recognizing that the economies of the Parties areendowed with conditions to complement each other and that
this complementarity should contribute to further promoting
sustainable economic development in the Parties, by making
use of their respective economic strengths throughbilateral trade and investment activities;
Believing that the implementation of this Agreement
will improve the living standards of peoples and create newand better employment opportunities in the Parties;
Seeking to create a clearly established legal
framework through mutually advantageous rules to govern
trade, business and investment between the Parties, which
would enhance the competitiveness of their economies,
promote the economic relations between them, make theirmarkets more efficient and dynamic and ensure a predictablecommercial environment;
Committed to avoid all distortions to their bilateral
trade;
Further committed to develop effective mechanisms forcooperation in various fields as agreed in this Agreement;- 11 -

Recognizing the rights of the Parties to regulate inorder to meet national policy objectives pursuant tointernational agreements to which either Party is a party
and pursuant to this Agreement;
Committed to implement this Agreement in a mannerconsistent with environmental protection and conservation;
andReaffirming the importance of strengthening andenhancing the multilateral trading system as reflected by
the World Trade Organization (hereinafter referred to as“WTO”);HAVE AGREED as follows:- 12 -

Chapter 1
General Provisions
Article 1
Establishment of a Free Trade Area
The Parties, consistent with Article XXIV of the GATT1994 and Article V of the GATS, hereby establish a free
trade area.
Article 2
Relation to Other Agreements
1.
The Parties reaffirm their rights and obligations withrespect to each other under the WTO Agreement or any otheragreement to which both Parties are parties.
2.
In the event of any inconsistency between thisAgreement and the WTO Agreement or any other agreement towhich both Parties are parties, the Parties shallimmediately consult with each other with a view to finding
a mutually satisfactory solution, taking into consideration
general principles of international law.
3.
The provisions of the Agreement between Japan and theRepublic of Peru for the Promotion, Protection and
Liberalisation of Investment, signed at Lima on November
21, 2008 (hereinafter referred to as “BIT”), except its
Articles 24 (Joint Committee) and 25 (Sub-committee on
Improvement of Investment Environment), as may be amended,
are incorporated into and made part of this Agreement,
mutatis mutandis.
Note: In the event of any inconsistency between thisAgreement and the BIT, unless otherwise provided
for in this Agreement, the provisions ofparagraph 2 shall be applied.

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Article 3
Regional and Local Government
In fulfilling its obligations and commitments under
this Agreement, each Party shall take such reasonablemeasures as may be available to it to ensure theirobservance by regional and local governments andauthorities and non-governmental bodies in the exercise of
powers delegated to them by central, regional and local
governments or authorities within its Area. For greatercertainty, neither Party shall be discharged from its
obligations under this Agreement, in the event of a noncompliance with the provisions of this Agreement, by any of
its governmental levels or non-governmental bodies in theexercise of such powers delegated to them.
Article 4
General Definitions
For the purposes of this Agreement, unless otherwise
specified:(a)the term “Area” means:
(i)

(ii)

with respect to Japan:(A)

the territory of Japan; and(B)

the exclusive economic zone and thecontinental shelf with respect to which
Japan exercises sovereign rights or
jurisdiction in accordance withinternational law; andwith respect to Peru: the mainland
territory, the islands, the maritime zones,
and the air space above them, over which
Peru exercises sovereignty or sovereign
rights and jurisdiction, in accordance with
relevant provisions of the Constitution of
Peru and international law;

Note 1: Nothing in this definition shall affectthe rights and obligations of the Parties
under international law.

- 14 -

Note 2: For greater certainty, the definition ofand references to “Area” contained inthis Agreement apply exclusively for the
purposes of determining the geographicalscope of application of this Agreement.
(b)

the term “Commission” means the Commission
established under Article 14;(c)the term “customs authority” means the authority
that, according to the legislation of each Partyor non-Parties, is responsible for theadministration and enforcement of customs laws
and regulations. In the case of Japan, theMinistry of Finance, or its successor, and in thecase of Peru, National Superintendence of Tax
Administration (Superintendencia Nacional deAdministración Tributaria (SUNAT)), or its
successor;(d)the term “days” means calendar days including
weekends and holidays;(e)the term “enterprise” means any entity
constituted or organized under applicable law,whether or not for profit, and whether privatelyor governmentally owned or controlled, including
any corporation, trust, partnership, sole
proprietorship, joint venture or otherassociation;(f)

the term “GATT 1994” means the General Agreement
on Tariffs and Trade 1994 in Annex 1A to the WTO
Agreement. For the purposes of this Agreement,
references to articles in the GATT 1994 include
the interpretative notes;(g)

the term “GATS” means the General Agreement on
Trade in Services in Annex 1B to the WTO
Agreement;(h)the term “good” means any merchandise, product,
article or material;- 15 -

(i)the term “Harmonized System” or “HS” means the
Harmonized Commodity Description and Coding
System defined in paragraph (a) of Article 1 ofthe International Convention on the HarmonizedCommodity Description and Coding System, andadopted and implemented by the Parties in theirrespective laws;(j)

the term “measure” includes any law, regulation,
rule, procedure, requirement, provision,practice, decision or administrative action
issued or taken by a Party;(k)the term “national” means a natural person who:(i)for Japan, is a national of Japan under its
laws; and(ii)

for Peru, is a national of Peru or has apermanent residency in Peru under its laws;(l)the term “originating good” means a good that
qualifies as originating under the provisions of
Chapter 3;(m)the term “person” means a natural person or an
enterprise; and(n)the term “WTO Agreement” means the Marrakesh
Agreement Establishing the World Trade
Organization, done at Marrakesh, April 15, 1994.
Article 5
Transparency

1.
Each Party shall promptly publish, or otherwise makepublicly available, its laws, regulations, administrative
procedures, administrative rulings and judicial decisionsof general application as well as international agreements
to which the Party is a party, which pertain to or affectthe operation of this Agreement.

- 16 -

2.
Each Party shall, upon request by the other Party,
within a reasonable period of time, respond to specificquestions from, and provide information to, the other Party
with respect to matters referred to in paragraph 1, in
English.
3.
Nothing in this Article shall prejudice as to whether
a measure adopted by a Party is consistent or not with thisAgreement.
4.
When introducing or changing its laws, regulations,administrative procedures or administrative rulings thatsignificantly affect the implementation and operation ofthis Agreement, each Party shall, to the extent possible,
and in accordance with its laws and regulations, endeavor
to provide, except in emergency situations, a reasonableinterval between the time when such laws, regulations,administrative procedures or administrative rulings as
introduced or changed are published or made publicly
available and the time when they enter into force.
Note: For greater certainty, “administrative rulings ofgeneral application” means an administrative decision
or interpretation that applies to all persons andfact situations that fall within the scope of
application of such administrative decision orinterpretation and that establishes a norm of conduct
but does not include:(a)a determination or ruling made in an
administrative proceeding that applies to aparticular person, good, or service in a
specific case; or(b)a ruling that adjudicates with respect to aparticular act or practice.
Article 6
Public Comment Procedures

Each Party shall, to the extent possible and inaccordance with its laws and regulations, endeavor toprovide an opportunity for comments from the public on any
regulation of general application that affects any mattercovered by this Agreement.

- 17 -

Article 7
Confidential Information
1.
Unless otherwise provided for in this Agreement,
nothing in this Agreement shall be construed to require a
Party to disclose or allow access to confidential
information, the disclosure of which would impede theenforcement of its domestic laws and regulations orotherwise be contrary to the public interest, or which
would prejudice legitimate commercial interests ofparticular enterprises, public or private.
2.
Each Party shall, in accordance with its domestic laws
and regulations, maintain the confidentiality of
information provided as confidential by the other Party
pursuant to this Agreement.
Article 8
Review and Appeal
1.
Each Party shall establish or maintain judicial
tribunals or procedures for the purpose of the subsequent
review and, where warranted, correction of administrative
actions regarding matters covered by this Agreement. Suchtribunals shall be impartial and independent of theauthorities entrusted with administrative enforcement andshall not have any substantial interest in the outcome of
the matter.
2.
Each Party shall ensure that, in any such tribunals orprocedures, the parties to the proceeding are provided withthe right to:(a)a reasonable opportunity to support or defend
their respective positions; and(b)a decision based on the evidence and submissionsof record or, where required by its domestic laws
and regulations, the record compiled by theadministrative authorities.

- 18 -

3.
Each Party shall ensure, subject to appeal orsubsequent review as provided for in its laws andregulations, that a decision referred to in subparagraph2(b) shall be implemented by, and shall be taken into
consideration of the authorities with respect to theadministrative action at issue.
Article 9
Measures against Corruption
Each Party shall ensure that measures and efforts areundertaken to prevent and combat corruption regarding
matters covered by this Agreement in accordance with its
laws and regulations.
Article 10
General Exceptions
1.
For the purposes of Chapters 2 through 6, Article XXof the GATT 1994 is incorporated into and made part of thisAgreement, mutatis mutandis.
2.
For the purposes of Chapters 7 through 9, Article XIVof the GATS is incorporated into and made part of thisAgreement, mutatis mutandis.
Note: For the purposes of this Article, it is understoodthat subparagraph (b) of Article XX of the GATT 1994
and subparagraph (b) of Article XIV of the GATS
include environmental measures necessary to protect
human, animal or plant life or health, and thatsubparagraph (g) of Article XX of the GATT 1994
applies to measures relating to the conservation ofliving and non-living exhaustible natural resources.
Article 11
Security Exceptions
1.
For the purposes of Chapters 2 through 6, Article XXIof the GATT 1994 is incorporated into and made part of thisAgreement, mutatis mutandis.

- 19 -

2.
For the purposes of Chapters 7 through 9, Article XIV
bis of the GATS is incorporated into and made part of thisAgreement, mutatis mutandis.
Article 12
Taxation
1.
Nothing in this Agreement shall apply to taxation
measures except as expressly provided for in this Article.
2.
Nothing in this Agreement shall affect the rights andobligations of either Party under any tax convention. In
the event of any inconsistency between this Agreement andany such convention, that convention shall prevail to theextent of the inconsistency.
3.
Paragraphs 1 and 2 of Article 5 and paragraph 1 of
Article 7 shall apply to taxation measures, to the extent
that the provisions of this Agreement are applicable tosuch taxation measures.
Note 1: For greater certainty, taxation measures do notinclude:(a)customs duty as defined in Article 18;(b)anti-dumping or countervailing duty that is
applied pursuant to Article VI of the GATT1994, the Agreement on Implementation of
Article VI of the General Agreement on Tariffs
and Trade 1994 in Annex 1A to the WTO
Agreement (hereinafter referred to as“Agreement on Anti-dumping”) or the Agreement
on Subsidies and Countervailing Measures inAnnex 1A to the WTO Agreement (hereinafterreferred to as “Agreement on Subsidies andCountervailing Measures”); or(c)fee or other charge in connection with
importation commensurate with the cost ofservices rendered.

Note 2: Nothing in this Article shall affect the rights andobligations of the Parties under the WTO Agreement.

- 20 -

Article 13
Temporary Safeguard Measures
In accordance with Article XII of the GATT 1994, theUnderstanding on the Balance-of-Payments Provisions of theGeneral Agreement on Tariffs and Trade 1994 in Annex 1A to
the WTO Agreement, and Article XII of the GATS, andconsistent with the Articles of Agreement of theInternational Monetary Fund, a Party may adopt or maintainmeasures:(a)in the event of serious balance-of-payments andexternal financial difficulties or threat
thereof; or(b)in cases where, in exceptional circumstances,
movements of capital cause or threaten to cause
serious difficulties for macroeconomic
management, in particular, monetary and exchange
rate policies.
Article 14
Commission

1.
The Parties hereby establish a Commission which shallbe co-chaired by Ministers or senior officials of theParties who are competent over this Agreement.
2.
The Commission shall be composed of representatives of
the Governments of the Parties.
3.

The Commission shall:(a)review and monitor the implementation andoperation of this Agreement;(b)when necessary, make appropriate recommendations
to the Parties and provide them with its opinion
regarding, among other issues, the interpretation
or application of this Agreement;(c)endeavor to resolve disputes between the Parties
about any matter concerning the interpretation orapplication of this Agreement;- 21 -

4.

(d)supervise and coordinate the work of all SubCommittees established under this Agreement; and(e)take any other action as the Parties may agree.

The Commission may:(a)establish Sub-Committees and any other workinggroups necessary for the operation of thisAgreement;(b)delegate its responsibilities to Sub-Committees
and any other working groups established under
this Agreement;(c)consider, recommend to the Parties and promote
any amendment to this Agreement, subject to thefulfillment of the internal legal procedures ofeach Party; and(d)adopt the Operational Procedures referred to in
Article 70.

5.
All decisions of the Commission shall be taken bymutual agreement.
6.
If the Commission makes a decision, subject to thefulfillment of internal legal requirements, such decision
shall enter into force on the date when the Parties notify
each other, that such internal legal requirements have been
fulfilled, unless the Parties agree otherwise.
7.
The Commission shall meet at least once a year
alternately in Japan and Peru, unless the Parties agree
otherwise.
Article 15
Contact Points
1.
Each Party shall designate a contact point tofacilitate communications between the Parties on any matter
relating to this Agreement, and shall communicate suchdesignation to the other Party within 90 days following theentry into force of this Agreement.

- 22 -

2.
Any information, request or notification to the otherParty shall be carried out through the contact point,
unless otherwise provided for in this Agreement.
3.

The contact point shall:(a)work jointly to develop agendas and make otherpreparations for the Commission meetings and tofollow up on the said meetings as appropriate;(b)address any matter entrusted by the Commission;
and

(c)

provide administrative support to the arbitral
tribunal established under Article 209.
Article 16
Implementing Agreement

The Governments of the Parties shall conclude a
separate agreement (hereinafter referred to as “theImplementing Agreement”), which sets forth the details andprocedures for the implementation of certain provisions of
this Agreement. The Implementing Agreement shall enter into
force on the same date as this Agreement and shall remain
in force as long as this Agreement remains in force.

- 23 -

Chapter 2
Trade in Goods
Section 1
General Rules
Article 17
Scope of Application
Except as otherwise provided for in this Agreement,
this Chapter shall apply to trade in goods between theParties.
Article 18
Definitions
For the purposes of this Chapter:(a)the term “Agreement on Agriculture” means theAgreement on Agriculture in Annex 1A to the WTO
Agreement;(b)

the term “Agreement on Safeguards” means theAgreement on Safeguards in Annex 1A to the WTO
Agreement;(c)the term “bilateral safeguard measure” means abilateral safeguard measure provided for in
Article 30;(d)the term “competent investigating authorities”
means:(i)for Japan, the Ministry of Finance, theMinistry of Economy, Trade and Industry, andany Ministry which has jurisdiction over theindustry subject to investigation in Japanor their successors; and(ii)

for Peru, the Ministry of Foreign Trade andTourism, or its successor;- 24 -

(e)the term “customs duty” means any customs orimport duty or a charge of any kind imposed on orin connection with the importation of a good, butdoes not include any:(i)charge equivalent to an internal tax imposedconsistently with the provisions of
subparagraph 2(a) of Article II of the GATT
1994;

(ii)

anti-dumping or countervailing duty appliedconsistently with the provisions of Article
VI of the GATT 1994, the Agreement on Antidumping, and the Agreement on Subsidies andCountervailing Measures; or(iii)

fee or other charge commensurate with thecost of services rendered;(f)the term “domestic industry” means, with respect
to an imported good, the producers as a whole ofthe like or directly competitive goods operating
in a Party, or those whose collective output of
the like or directly competitive goods
constitutes a major proportion of the total
domestic production of those goods;(g)the term “export subsidies” means export
subsidies defined in Article 1(e) of theAgreement on Agriculture;(h)the term “import licensing” means anadministrative procedure used for the operationof import license regimes requiring thesubmission of an application or otherdocumentation (other than that required forcustoms purposes) to the relevant administrative
body as a prior condition for importation to theimporting Party;(i)the term “provisional bilateral safeguard
measure” means a provisional bilateral safeguard
measure provided for in Article 33;(j)

the term “serious injury” means a significant
overall impairment in the position of a domestic
industry; and- 25 -

(k)the term “threat of serious injury” means serious
injury that, on the basis of facts and not merelyon allegation, conjecture, or remote possibility,
is clearly imminent.
Article 19
Classification of Goods

The classification of goods in trade between theParties shall be in conformity with the Harmonized System.
Article 20
National Treatment
Except as otherwise provided for in Annex 2, eachParty shall accord national treatment to the goods of theother Party in accordance with Article III of the GATT1994, and to this end Article III of the GATT 1994 isincorporated into and made part of this Agreement, mutatis
mutandis.
Article 21
Elimination or Reduction of Customs Duties
1.
Except as otherwise provided for in this Agreement,
neither Party shall increase or introduce any customs duty
on originating goods of the other Party beyond the rate tobe applied in accordance with its Schedule in Annex 1.
2.
Except as otherwise provided for in this Agreement,each Party shall eliminate or reduce its customs duties on
originating goods of the other Party, in accordance with
its Schedule in Annex 1.
3.
If the rate of customs duty on an originating good ofa Party applied in accordance with Annex 1 is higher thanthe most-favored-nation applied rate of customs duty on thesame good, the latter rate shall be applied to thatoriginating good.

- 26 -

4.

5.

(a)

Upon request of either Party, the Parties shallnegotiate on issues such as improving market
access conditions on originating goods designatedfor negotiation in the Schedules in Annex 1 inaccordance with the terms and conditions set out
in such Schedules.

(b)Upon request of either Party, the Parties shallconsult to consider accelerating the reduction or
broadening the scope of the elimination ofcustoms duties set out in their Schedules inAnnex 1 since the fifth calendar year following
the calendar year in which this Agreement enters
into force.

For greater certainty, a Party may:(a)raise a rate of customs duty to be applied on theoriginating good of the other Party up to therate established in its Schedule in Annex 1
following a unilateral reduction of the rate; or(b)suspend the further reduction of or increase any
customs duty on the originating good of the otherParty, as authorized by the Dispute Settlement
Body of the WTO pursuant to the Understanding on
Rules and Procedures Governing the Settlement of
Disputes in Annex 2 to the WTO Agreement.
Article 22
Non-Tariff Measures

1.
Except as otherwise provided for in Annex 2 and otherrelevant provisions of this Agreement, neither Party shallintroduce or maintain any prohibition or restriction otherthan customs duties on the importation of any good of theother Party or on the exportation or sale for export of any
good destined to the other Party, which is inconsistent
with its obligations under Article XI of the GATT 1994 andthe relevant provisions of the WTO Agreement, and to thisend Article XI of the GATT 1994, is incorporated into andmade part of this Agreement, mutatis mutandis.
2.
Neither Party shall require the other Party orexporter to adopt or maintain:- 27 -

(a)voluntary undertakings inconsistent with Article
8 of the Agreement on Anti-dumping and Article 18of the Agreement on Subsidies and Countervailing
Measures; or(b)voluntary export restraints inconsistent with
Article 11 of the Agreement on Safeguards.

3.
Neither Party shall require its importer to have acontractual or other relationship with a distributor in theimporting Party as a condition for engaging in importationor for the import of a good, which is inconsistent withparagraph 1 of Article XI of the GATT 1994.
Article 23
Import Licensing
1.
Neither Party shall adopt or maintain a measure thatis inconsistent with the Agreement on Import Licensing
Procedures in Annex 1A to the WTO Agreement (hereinafterreferred to as “Agreement on Import Licensing Procedures”)
and to this end the Agreement on Import Licensing
Procedures is incorporated into and made part of thisAgreement, mutatis mutandis.
2.
Neither Party shall apply an import licensing
procedure to a good of the other Party unless it has
provided notification in accordance with Article 5 of theAgreement on Import Licensing Procedures.
Article 24
Administrative Fees and Formalities
1.
Each Party shall ensure that all fees and charges
imposed on or in connection with importation or exportationof goods are consistent with subparagraph 1(a) of Article
VIII of the GATT 1994. To this end, Article VIII of the
GATT 1994 is incorporated into and made part of thisAgreement, mutatis mutandis.
2.
Neither Party shall require consular transactions,
including related fees and charges, in connection with theimportation of any originating good of the other Party.

- 28 -

Note: For the purposes of this paragraph, “consulartransactions” means requirements by the consulof the importing Party located in the exporting
Party for the purpose of obtaining consular
invoices or consular visas for commercial
invoices, certificates of origin, manifests,
shippers’ export declarations, or any othercustoms documentation required on or inconnection with importation.
3.
Each Party shall make available on its websites
details of fees and charges that it imposes on or inconnection with importation or exportation of goods as soon
as possible.
Article 25
Export Duties, Fees or Other Charges
Neither Party shall introduce or maintain any duties,
fees or other charges of any kind imposed on a goodexported from the Party into the other Party, unless suchduties, fees or other charges are not in excess of those
imposed on the like good destined for domestic consumption.
Article 26
Customs Valuation
For the purposes of determining the customs value ofgoods traded between the Parties, the provisions of theAgreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO
Agreement (hereinafter referred to as “Agreement on Customs
Valuation”), which is hereby incorporated into and madepart of this Agreement, mutatis mutandis, shall apply.
Article 27
Agricultural Export Subsidies
1.
Neither Party shall introduce, maintain or reintroduce
any export subsidies on any agricultural good which islisted in Annex 1 to the Agreement on Agriculture andexported to the other Party.

- 29 -

2.
If either Party considers that the other Party has
failed to carry out its obligations under this Agreement byintroducing, maintaining or reintroducing an export
subsidy, such Party may request consultations with theother Party according to Chapter 15 with a view to arriving
at a mutually satisfactory solution, in particular,agreeing on specific measures that the importing Party may
adopt to counter the effect of such subsidized imports.
Article 28
Price Band System
Peru may maintain its Price Band System referred to in
Note 2 of Section 1 of the Schedule of Peru in Annex 1 withrespect to the agricultural goods specified with one
asterisk (“*”) in column 5 of its Schedule.
Section 2
Safeguard Measures
Article 29
General Provisions
1.
Each Party retains its rights and obligations under
Article XIX of the GATT 1994, the Agreement on Safeguards
and Article 5 of the Agreement on Agriculture.
2.
A Party applying a safeguard measure to theimportation of an originating good of the other Party inaccordance with Article XIX of the GATT 1994 and theAgreement on Safeguards, or Article 5 of the Agreement on
Agriculture, shall not apply at the same time a bilateralsafeguard measure under this Section to that importation.

- 30 -

3.
In the case a Party has applied a bilateral safeguard
measure under this Section to an importation of an
originating good of the other Party prior to theapplication of a safeguard measure in accordance with
Article XIX of the GATT 1994 and the Agreement on
Safeguards, or Article 5 of the Agreement on Agriculture,
the duration of the bilateral safeguard measure referred toin paragraph 1 of Article 31 to that importation shall not
be interrupted by the Party’s non-application of thebilateral safeguard measure in accordance with paragraph 2.
The Party may resume the application of the bilateralsafeguard measure to that importation upon the terminationof the latter safeguard measure up to the remaining periodof the bilateral safeguard measure.
Article 30
Bilateral Safeguard Measures
1.
Subject to the provisions of this Section, a Party may
apply a bilateral safeguard measure if an originating goodof the other Party, as a result of the elimination or
reduction of a customs duty in accordance with Article 21,
is being imported into the former Party in such increased
quantities, in absolute terms, and under such conditions
that the imports of that originating good constitute a
substantial cause of serious injury, or threat thereof, tothe domestic industry of the former Party.
2.
If the conditions in paragraph 1 are met, a Party may,
to the minimum extent necessary to prevent or remedy
serious injury, and facilitate adjustment:(a)suspend the further reduction of any rate ofcustoms duty on the originating good provided forin Section 1; or(b)increase the rate of customs duty on theoriginating good to a level not to exceed theleast among:(i)the most-favored-nation applied rate ofcustoms duty in effect on the day when thebilateral safeguard measure is applied;(ii)

the Base Rate as specified in Column 3 of
its Schedule in Annex 1; and- 31 -

(iii)

Note 1:In the case of the elimination ofcustoms duties on the date of entry
into force of this Agreement, themost-favored-nation applied rate on
April 1, 2009 shall be the Base
Rate.

Note 2:In the case of originating goods
specified with “G” in Column 5 of
the Schedule of Japan in Annex 1,
the Base Rate shall be replaced by
the most-favored-nation applied
rate on April 1, 2009.

the most-favored-nation applied rate ofcustoms duty in effect on the day
immediately preceding the date of entry into
force of this Agreement.
Note:

Upon the entry into force of thisAgreement, the Parties shall exchange
the most-favored-nation applied rateof customs duty in effect on the day
immediately preceding the date ofentry into force of this Agreement.

Article 31
Conditions and Limitations
1.
No bilateral safeguard measure shall be maintained
except to the extent and for such period of time as may benecessary to prevent or remedy serious injury and to
facilitate adjustment, provided that such period of timeshall not exceed a period of two years. However, in highly
exceptional circumstances, if the competent investigating
authorities determine in conformity with the procedures set
out in Article 32, that the measure continues to benecessary to prevent or remedy serious injury and to
facilitate adjustment and that there is evidence that thedomestic industry is adjusting, a bilateral safeguard
measure may be extended, provided that the total durationof the bilateral safeguard measure, including suchextensions, shall not exceed three years.

- 32 -

2.
In order to facilitate adjustment in a situation where
the expected duration of a bilateral safeguard measure isover one year, the Party applying the bilateral safeguard
measure shall progressively liberalize it at regularintervals during the period of application.
3.
Upon the termination of a bilateral safeguard measure,
the rate of customs duty for the originating good subject
to the measure shall be the rate which would have been in
effect but for the bilateral safeguard measure.
4.
No bilateral safeguard measure shall be applied again
to the import of a particular originating good which has
been subject to such a bilateral safeguard measure, for aperiod of time equal to the duration of the previous
bilateral safeguard measure or one year, whichever islonger.
Article 32
Investigating Procedures
1.
A Party may apply a bilateral safeguard measure only
after an investigation has been carried out by thecompetent investigating authorities of that Party inaccordance with Article 3 and subparagraph 2(c) of Article
4 of the Agreement on Safeguards and to this end, Article 3
and subparagraph 2(c) of Article 4 of the Agreement on
Safeguards are incorporated into and made part of thisAgreement, mutatis mutandis.
2.
The investigation referred to in paragraph 1 shall in
all cases be completed within one year following its dateof initiation.

- 33 -

3.
In the investigation referred to in paragraph 1 todetermine whether increased imports of an originating good
have caused serious injury or threat of serious injury to adomestic industry under the terms of this Section, thecompetent investigating authorities of the Party whichcarry out the investigation shall evaluate all relevant
factors of an objective and quantifiable nature having abearing on the situation of that domestic industry, inparticular, the rate and amount of the increase in importsof the originating good in absolute terms, the share of thedomestic market taken by the increased imports of theoriginating good, and the changes in the level of sales,
production, productivity, capacity utilization, profits andlosses, and employment.
4.
The determination that increased imports of an
originating good have caused serious injury or threat ofserious injury to a domestic industry shall not be madeunless the investigation referred to in paragraph 1
demonstrates, on the basis of objective evidence, theexistence of the causal link between increased imports of
the originating good and serious injury or threat thereof.
When factors other than the increased imports of theoriginating good are causing injury to the domestic
industry at the same time, such injury shall not be
attributed to the increased imports of the originating
good.
Article 33
Provisional Bilateral Safeguard Measures
1.
In critical circumstances, where delay would cause
damage which it would be difficult to repair, a Party may
apply a provisional bilateral safeguard measure, whichshall take the form of the measure set out in paragraph 2
of Article 30, pursuant to a preliminary determination that
there is clear evidence that increased imports of an
originating good of the other Party have caused or are
threatening to cause serious injury to a domestic industryof the former Party.

- 34 -

2.
The duration of a provisional bilateral safeguard
measure shall not exceed 200 days. During that period, thepertinent requirements of Articles 34 and 35 shall be met.
The duration of the provisional bilateral safeguard measure
shall be counted as a part of the period referred to inparagraph 1 of Article 31.
3.
Paragraph 3 of Article 31 shall apply, mutatis
mutandis, to a provisional bilateral safeguard measure. The
customs duty imposed as a result of the provisional
bilateral safeguard measure or its guarantees shall be
refunded or liberated, in accordance with domestic laws andregulations, if the subsequent investigation referred to inparagraph 1 of Article 32 does not determine that increased
imports of an originating good of the other Party havecaused serious injury or threat of serious injury to adomestic industry.
Article 34
Notification
1.
A Party shall immediately make a written notice to theother Party:(a)upon initiating an investigation referred to inparagraph 1 of Article 32 relating to serious
injury, or threat thereof, and the reasons for
it;

(b)

upon taking a decision to apply or extend abilateral safeguard measure; and(c)upon adopting a provisional bilateral safeguard
measure.

2.
The Party making the written notice referred to inparagraph 1 shall, in accordance with its laws andregulations, provide the other Party with all pertinent
information, which shall include:- 35 -

(a)in the written notice referred to in subparagraph1(a), a summary of the reason for the initiationof the investigation, a precise description of
the originating good subject to the investigationand its subheading under the Harmonized System,
the period subject to the investigation and thedate of initiation of the investigation; and(b)in the written notice referred to in subparagraph1(b), a summary of the evidence of serious injury
or threat of serious injury caused by theincreased imports of the originating good, aprecise description of the originating goodsubject to the proposed bilateral safeguard
measure and its subheading under the Harmonized
System, a precise description of the proposed
bilateral safeguard measure, and the proposed
date of the introduction and expected duration of
the bilateral safeguard measure.

3.
A written notice referred to in paragraph 1 and anyother communication between the Parties pursuant to thisSection shall be made in the English language.
4.
A Party shall provide the other Party with a copy ofthe public version of the report of its competent
investigating authorities resulting from the investigation
required under paragraph 1 of Article 32. This requirement
is deemed to have been complied with if such report is madeavailable on a publicly accessible website.
Article 35
Consultations and Compensation
1.
Consultations between the Parties on the applicationof the provisional bilateral safeguard measure shall be
initiated immediately after the provisional bilateralsafeguard measure is applied.
2.
A Party proposing to apply or extend a bilateralsafeguard measure shall provide adequate opportunity forprior consultations with the other Party with a view toreviewing the information arising from the investigationreferred to in paragraph 1 of Article 32, exchanging viewson the bilateral safeguard measure and reaching anagreement on compensation set out in paragraph 3.

- 36 -

3.
A Party proposing to apply or extend a bilateralsafeguard measure shall provide to the other Party mutuallyagreed adequate means of trade compensation in the form ofconcessions of customs duties whose value is substantiallyequivalent to that of the additional customs duties
expected to result from the bilateral safeguard measure.
4.
If the Parties are unable to agree on the compensation
within 30 days after the commencement of the consultations
pursuant to paragraph 2, the Party to whose originating
good the bilateral safeguard measure is applied shall befree to suspend the application of concessions of customs
duties under this Agreement, which are substantiallyequivalent to the bilateral safeguard measure. The Party
exercising the right of suspension may suspend theapplication of concessions of customs duties only for theminimum period necessary to achieve the substantiallyequivalent effects and only while the bilateral safeguard
measure is maintained.
5.
The Party exercising the right of suspension provided
for in paragraph 4 shall notify the other Party in writingat least 30 days before suspending the application ofconcessions.
Article 36
Review
Except as otherwise agreed by the Parties, the Parties
shall review the provisions of this Section, if necessary,
after 10 years of the date of entry into force of thisAgreement, in particular, with a view to determining
whether there is a need to maintain the bilateral safeguardmechanism.
Section 3
Other Provisions
Article 37
Sub-Committee on Trade in Goods
1.
The Parties hereby establish a Sub-Committee on Tradein Goods (hereinafter referred to in this Article as “theSub-Committee”).

- 37 -

2.

The functions of the Sub-Committee shall be:(a)reviewing and monitoring the implementation andoperation of this Chapter;(b)considering any other matter related to this
Chapter as the Parties may agree;(c)discussing any amendments to Annex 1, in
accordance with the amendment of the Harmonized
System to ensure that each Party’s obligations
under this Agreement shall not be altered;(d)consulting on and endeavoring to resolve any
difference related to the scope of application ofthis Chapter that may arise between the Parties;(e)establishing, if necessary, ad hoc working groups
to accomplish any specific tasks;(f)reporting the findings of the Sub-Committee to
the Commission; and(g)other functions assigned by the Commission.

3.
The Sub-Committee shall be composed of government
officials of the Parties.
4.
The Sub-Committee shall hold meetings, in principle,
every two years, and at such times and venues or by means,as may be agreed by the Parties.

- 38 -

Chapter 3
Rules of Origin
Article 38
Definitions
For the purposes of this Chapter:(a)

The term “certification body” means an entity ora body designated or authorized to issue a
Certificate of Origin by the competent authorityof a Party, in accordance with its laws andregulations;(b)

The term “competent authority” means theauthority that, in accordance with the laws andregulations of each Party, is responsible for theissuance of a Certificate of Origin or for thedesignation of certification bodies, for theauthorization of approved exporters referred toin Article 58 and for the verification of
information related to Proofs of Origin referred
to in Article 66:(i)in the case of Japan, the Ministry of
Economy, Trade and Industry, or its
successor; and(ii)

in the case of Peru, the Ministry of Foreign
Trade and Tourism, or its successor;(c)

The term “exporter” means a person located in theexporting Party from where a good is exported bysuch person;(d)

The term “factory ships of the Party” or “vesselsof the Party” respectively, means factory ships
or vessels which:(i)are registered in the Party;(ii)

sail under the flag of the Party; and(iii)

meet one of the following conditions:- 39 -

(A)they are at least 50 percent owned bynationals of the Parties; or(B)they are owned by a juridical person
which has its head office and its
principal place of business in either
Party and which does not own any vesselor ship registered in a non-Party;(e)

The term “fungible goods” or “fungible materials”
respectively, means goods or materials that areinterchangeable for commercial purposes, whose
properties are essentially identical;(f)

The term “Generally Accepted Accounting
Principles” means the recognized consensus or
substantial authoritative support within a Party,
at a particular time as to which economic
resources and obligations should be recorded asassets and liabilities, which changes in assets
and liabilities should be recorded, how theassets and liabilities and changes in them shouldbe measured, what information should be disclosed
and how it should be disclosed, and which
financial statements should be prepared. Thesestandards may be broad guidelines of generalapplication as well as detailed practices andprocedures;(g)

The term “identical goods” means goods that are
the same in all respects, including physicalcharacteristics and quality, irrespective ofminor differences in appearance that are not
relevant to the determination of origin;(h)

The term “importer” means a person located in theimporting Party from where a good is imported bysuch person;(i)

The term “material” means a good that is used in
the production of another good, including any
components, ingredients, raw materials or parts;(j)

The term “non-originating material” means amaterial which does not qualify as an originating
good under this Chapter;- 40 -

(k)The term “originating material” means a material
that qualifies as originating under this Chapter;(l)

The term “packing materials and containers forshipment” means goods that are used to protect agood during transportation and shipment, otherthan packaging materials and containers forretail sale referred to in Article 49;(m)

The term “preferential tariff treatment” means
the rate of customs duties applicable to an
originating good of the exporting Party inaccordance with paragraph 2 of Article 21;(n)

The term “producer” means a person who engages in
the production of goods or materials;(o)

The term “production” means a method of obtaining
goods including growing, raising, extracting,picking, gathering, breeding, mining, harvesting,fishing, trapping, capturing, collecting,hunting, manufacturing, processing andassembling; and(p)

The term “relevant authority” means:(i)in the case of Japan, the Ministry of
Finance, or its successor; and(ii)

in the case of Peru, the Ministry of Foreign
Trade and Tourism, or its successor.
Article 39
Originating Goods

For the purposes of this Agreement, a good shallqualify as an originating good of a Party where:(a)the good is wholly obtained or produced entirelyin the Party, as defined in Article 40;(b)

the good is produced entirely in the Party
exclusively from originating materials of theParty; or- 41 -

(c)the good satisfies the product specific rules(change in tariff classification, qualifying
value content or specific manufacturing orprocessing operation) set out in Annex 3, when
the good is produced entirely in the Party using
non-originating materials,

and meets all other applicable requirements of this
Chapter.
Article 40
Wholly Obtained Goods
For the purposes of subparagraph (a) of Article 39,
the following goods shall be considered as wholly obtainedor produced entirely in a Party:(a)live animals, born and raised in the Party;(b)

goods obtained from live animals in the Party;(c)goods obtained by hunting, trapping, fishingconducted within the baselines, or capturing in
the Party;(d)plants and plant products harvested, picked orgathered in the Party;(e)minerals and other naturally occurring substances
not included in subparagraphs (a) through (d)extracted or taken in the Party;(f)goods of sea-fishing and other goods taken fromthe sea by vessels of the Party;
Note 1: For the purposes of this Chapter, goodsof sea-fishing and other goods taken fromthe sea by vessels of a Party within 200
nautical miles from the baselines of theother Party shall be regarded asoriginating goods of the latter Party.
Note 2: Nothing in this Chapter shall be deemed
to prejudice the positions of therespective Parties with respect tomatters relating to the law of the sea.

- 42 -

(g)goods produced on board factory ships of theParty from the goods referred to in subparagraph
(f);

(h)

goods taken or extracted from the seabed or
beneath the seabed outside the Party, provided
that the Party has rights to exploit such seabedor subsoil in accordance with international law;(i)waste and scrap derived from:(i)manufacturing or processing operations
conducted in the Party; or(ii)

used goods collected in the Party,

provided that such waste and scrap are fit only
for the recovery of raw materials; and(j)goods obtained or produced in the Party
exclusively from the goods referred to in
subparagraphs (a) through (i).
Article 41
Qualifying Value Content

1.
For the purposes of calculating the qualifying value
content (QVC) of a good, the following formula shall beapplied:FOB – VNM
QVC = ---------------------- x 100
FOB
where:
QVC: is the qualifying value content of a good, expressed
as a percentage;
FOB: is, except as provided for in paragraph 2, the freeon-board value of a good payable by the buyer of the goodto the seller of the good, regardless of the mode of
shipment, not including any internal excise taxes reduced,
exempted, or repaid when the good is exported; and- 43 -

VNM: is the value of the non-originating materials used in
the production of a good.
2.

FOB referred to in paragraph 1 shall be:(a)substituted with the first ascertainable pricepaid for a good from the buyer to the producer ofthe good, if there is free-on-board value of thegood, but it is unknown and cannot be
ascertained; or(b)the value determined in accordance with Articles
1 through 8 of the Agreement on Customs
Valuation, if there is no free-on-board value ofa good.

3.
For the purposes of paragraph 1, the value of the nonoriginating materials used in the production of a good in a
Party shall be:(a)in the case of a material imported directly by
the producer of a good: the CIF value; or(b)

in the case of a material acquired by the
producer in the Party:(i)the CIF value; or(ii)

the transaction value, but may exclude all
the costs incurred in the Party intransporting the material from the warehouseof the supplier of the material to the place
where the producer is located such as
freight, insurance and packing as well as
any other known and ascertainable cost
incurred in the Party in suchtransportation.

Note 1: For the purposes of this paragraph, the term
“CIF value” means the customs value of theimported good in accordance with the Agreement
on Customs Valuation and includes freight andinsurance where appropriate, packing and allother costs incurred in transporting thematerial to the importation port in the Party
where the producer of the good is located.

- 44 -

Note 2: For the purposes of this paragraph, the“transaction value” means the price actually
paid or payable for a material with respect toa transaction of the producer of the material.
4.
The Agreement on Customs Valuation shall apply,
mutatis mutandis, for the purposes of calculating the valueof a good or non-originating material referred to in
subparagraphs 2(b) and 3(b).
5.
For the purposes of this Article, the value of a nonoriginating material used in the production of a good in a
Party shall not include the value of non-originating
materials used in the production of originating materialsof the Party which are used in the production of the good.
Article 42
Non-Qualifying Operations
1.
A good shall not be considered to be an originating
good of a Party merely by reason of:(a)operations to ensure the preservation of goods ingood condition during transport and storage (suchas drying, freezing, keeping in brine) and othersimilar operations;(b)changes of packaging and breaking-up and assemblyof packages;(c)placing in bottles, cases, boxes and otherpackaging operations, including packing,unpacking or repacking operations for retail salepurposes;(d)disassembly;(e)collection of parts and components classified asa good pursuant to Rule 2(a) of the General Rules
for the Interpretation of the Harmonized System;(f)mere making-up of sets of articles; or(g)any combination of operations referred to in
subparagraphs (a) through (f).

- 45 -

2.
Paragraph 1 shall prevail over the product specificrules set out in Annex 3.
Article 43
Accumulation
For the purposes of determining whether a good is an
originating good of a Party:(a)an originating good of the other Party which isused as a material in the production of the goodin the former Party may be considered as an
originating material of the former Party;(b)

the production in the other Party may beconsidered as that in the former Party; and(c)the production carried out at different stages by
one or more producers within the Party or in theother Party may be taken into account, when thegood is produced using non-originating materials,

provided that such good has undergone its last production
process in the exporting Party and such production process
goes beyond the operations provided for in Article 42.
Article 44
De Minimis
1.
A good that does not satisfy a change in tariffclassification requirement set out in Annex 3 shall beconsidered as an originating good of a Party if:(a)in the case of a good classified under Chapter 1,
4 through 15, or 17 through 24 of the Harmonized
System, the total value of non-originating
materials used in the production of the good thathave not undergone the required change in tariffclassification does not exceed 10 percent of the
FOB value of the good, determined pursuant to
Article 41, and the non-originating material usedin the production of the good is provided for ina subheading which is different from that of thegood for which the origin is being determined
under this Article;- 46 -

(b)in the case of a good classified under Chapter 25
through 49, or 64 through 97 of the Harmonized
System, the total value of non-originating
materials used in the production of the good thathave not undergone the required change in tariffclassification does not exceed 10 percent of the
FOB value of the good, determined pursuant to
Article 41; or(c)in the case of a good classified under Chapter 50
through 63, of the Harmonized System, the total
weight of non-originating materials used in the
production of the good that have not undergone
the required change in tariff classification does
not exceed 10 percent of the total weight of thegood,provided that it meets all other applicable requirements
set out in this Chapter for qualifying as an originatinggood.
2.
The value of non-originating materials referred to inparagraph 1 shall, however, be included in the value of
non-originating materials for any applicable qualifying
value content requirement for the good.
Article 45
Unassembled or Disassembled Goods
1.
Where a good satisfies the requirements of therelevant provisions of Articles 39 through 42 and isimported into a Party from the other Party in an
unassembled or disassembled form but is classified as an
assembled good pursuant to Rule 2(a) of the General Rules
for the Interpretation of the Harmonized System, such agood shall be considered as an originating good of theother Party.

- 47 -

2.
A good assembled in a Party from unassembled ordisassembled materials, which were imported into the Party
and classified as an assembled good pursuant to Rule 2(a)of the General Rules for the Interpretation of theHarmonized System, shall be considered as an originating
good of the Party, provided that the good would havesatisfied the applicable requirements of the relevant
provisions of Articles 39 through 42 if each of the nonoriginating materials among the unassembled or disassembled
materials had been imported into the Party separately andnot as an unassembled or disassembled form.
Article 46
Fungible Goods or Materials
1.
For the purposes of determining whether a goodqualifies as an originating good of a Party, where fungible
originating materials of the Party and fungible nonoriginating materials that are commingled in an inventory
are used in the production of the good, the origin of thematerials may be determined pursuant to an inventory
management method under the Generally Accepted Accounting
Principles in the Party.
2.
Where fungible originating goods of a Party andfungible non-originating goods are commingled in an
inventory and, prior to exportation do not undergo any
production process or any operation in the Party where they
were commingled other than unloading, reloading and anyother operation to preserve them in good condition, theorigin of the good may be determined pursuant to an
inventory management method under the Generally Accepted
Accounting Principles in the Party.
3.
Once an inventory management method set out inparagraphs 1 and 2 has been chosen, it shall be usedthroughout the fiscal year or fiscal period of the personthat selected the inventory management method.

- 48 -

Article 47
Sets
1.
Sets classified pursuant to Rule 3 of the General
Rules for the Interpretation of the Harmonized System andgoods specifically described as sets in the nomenclature of
the Harmonized System shall qualify as originating goods ofa Party, where every good contained in the set qualifies as
originating under this Chapter.
2.
Notwithstanding paragraph 1, a set shall be considered
as an originating good, if the value of all non-originating
goods used in the set does not exceed 10 percent of the FOB
value of the set determined pursuant to Article 41, andsuch set satisfies all other applicable requirements ofthis Chapter.
3.
Provisions of this Article shall prevail over the
product specific rules set out in Annex 3.
Article 48
Accessories, Spare Parts and Tools
Accessories, spare parts or tools delivered with agood at the time of importation that form part of thegood’s standard accessories, spare parts or tools:(a)shall be disregarded in determining whether all
the non-originating materials used in the
production of a good have undergone theapplicable change in tariff classification or a
specific manufacturing or processing operation
set out in Annex 3; and(b)shall be considered as originating or nonoriginating materials, as the case may be, usedin the production of the good in calculating thequalifying value content of the good,

provided that the accessories, spare parts or tools are notinvoiced separately from the good, whether or not they areseparately described in the invoice; and that thequantities and value of the accessories, spare parts ortools are customary for the good.

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Article 49
Packaging Materials and Containers for Retail Sale
1.
Packaging materials and containers for retail sale,
which are classified with the good, pursuant to Rule 5 of
the General Rules for the Interpretation of the Harmonized
System, shall be disregarded in determining the origin of
the good, provided that:(a)the good is wholly obtained or entirely produced
as defined in subparagraph (a) of Article 39;(b)

the good is produced exclusively from originating
materials, as defined in subparagraph (b) of
Article 39; or(c)the good has undergone the applicable change intariff classification or a specific manufacturing
or processing operation set out in Annex 3.

2.
If a good is subject to a qualifying value content
requirement, packaging materials and containers used forretail sale shall be considered as originating or nonoriginating materials of the good, as the case may be.
Article 50
Packing Materials and Containers for Shipment
Packing materials and containers for transportationand shipment of a good shall not be taken into account indetermining the origin of the good.
Article 51
Indirect Materials
In order to determine whether a good qualifies as an
originating good of a Party, it shall not be necessary to
determine the origin of the following elements used in its
production:(a)fuel and energy;(b)tools, dies and molds;- 50 -

(c)spare parts and goods used in the maintenance ofequipment and buildings;(d)lubricants, greases, compounding materials andother goods used in production or used to operate
equipment and buildings;(e)gloves, glasses, footwear, clothing, safety
equipment and supplies;(f)equipment, devices and supplies used for testingor inspecting the good;(g)catalysts and solvents; and(h)any other goods that are not incorporated intoanother good but whose use in the production of
the good can reasonably be demonstrated to be apart of that production.
Article 52
Consignment Criteria

1.
An originating good of a Party shall be deemed to meetthe consignment criteria when it is transported:(a)directly from the exporting Party to theimporting Party without passing through a nonParty; or(b)from the exporting Party to the importing Party
through one or more non-Parties for the purposeof transit, transshipment or temporary storage inwarehouses in such non-Parties, provided that:(i)it does not undergo operations other thanunloading, reloading and any other operation
to preserve it in good condition; and(ii)

the good remains under control of thecustoms authorities in such non-Parties.

2.
If an originating good of a Party does not meet theconsignment criteria referred to in paragraph 1, that goodshall no longer be considered as an originating good of theParty.

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Article 53
Proofs of Origin
For the purposes of this Chapter, the following
documents shall be considered as Proofs of Origin:(a)a Certificate of Origin referred to in Article
54; and(b)

an origin declaration referred to in Article 57.
Article 54
Certificate of Origin

1.
A Certificate of Origin shall be issued by thecompetent authority of the exporting Party on application
having been made by the exporter or, under the exporter’s
responsibility, by his authorized representative.
2.
For the purposes of this Article, the competentauthority of the exporting Party may designate, under theauthorization given in accordance with the applicable laws
and regulations of that Party, certification bodies for theissuance of a Certificate of Origin.
3.
Each Party shall establish its form for the
Certificate of Origin, which shall conform to the specimen
provided for in Annex 4. The Certificate of Origin shall becompleted in English by the exporter or, under theexporter’s responsibility, by his authorized representativein accordance with the instructions provided for in theOverleaf Note for the Certificate of Origin in Annex 4.
4.
A Certificate of Origin shall be issued by the time of
shipment, except as provided for in Article 55.
5.
The exporter applying for the issuance of a
Certificate of Origin for a good shall be prepared tosubmit at any time, at the request of the competentauthority of the exporting Party or its certification
bodies which issue the Certificate of Origin, allappropriate documents proving that the good qualifies as an
originating good of the exporting Party.

- 52 -

6.
Where the exporter of a good is not the producer ofthe good in the exporting Party, the exporter may request a
Certificate of Origin on the basis of:(a)a declaration given by the exporter to thecompetent authority of the exporting Party or its
certification bodies based on the information ora declaration provided by the producer of thegood; or(b)

a declaration voluntarily given by the producerof the good directly to the competent authorityof the exporting Party or its certification
bodies at the request of the exporter.

7.
A Certificate of Origin for a good shall be issued by
the competent authority of the exporting Party or its
certification bodies if the good can be considered as an
originating good of the exporting Party.
8.
The competent authority of the exporting Party or its
certification bodies shall take any steps necessary toverify the qualification of the goods as originating goodsof the exporting Party. For this purpose, they shall havethe right to call for any evidence and to carry out any
inspection of the documents or information relating to theoriginating status of the goods held by the exporter or
producer referred to in this Article or any other checkconsidered appropriate. They shall also ensure that theform referred to in paragraph 3 is duly completed.
9.
The competent authority of each Party or its
certification bodies shall number correlatively the
Certificates of Origin issued.

- 53 -

10. An exporter to whom a Certificate of Origin for a goodhas been issued, or a producer referred to in subparagraph6(b), shall promptly send a notification in writing of any
change that could affect the accuracy or validity of theCertificate of Origin to the competent authority of theexporting Party, when such exporter or producer has reasons
to believe that the Certificate of Origin contains
incorrect information. The competent authority of theexporting Party shall, if it receives such notification,
promptly notify the relevant authority of the importing
Party, except where the Certificate of Origin has beenreturned by the exporter to the competent authority of theexporting Party or its certification bodies without being
used for the purposes of claiming preferential tariff
treatment.
Article 55
Certificate of Origin Issued Retrospectively
1.
A Certificate of Origin may exceptionally be issued
after shipment of the goods to which it relates if:(a)it was not issued at the time of shipment becauseof errors or involuntary omissions or exceptional
cases; or(b)

it is demonstrated to the satisfaction of thecompetent authority of the exporting Party that a
Certificate of Origin was issued but was not
accepted at importation for technical reasons.

2.
Such Certificate of Origin shall bear the phrase“ISSUED RETROSPECTIVELY” in the Field 9.

- 54 -

Article 56
Issuance of a Duplicate Certificate of Origin
In the event of theft, loss or destruction of a
Certificate of Origin before the expiration of its
validity, the exporter may apply to the competent authorityof the exporting Party or the certification body whichissued it for a duplicate of the original Certificate ofOrigin on the basis of the export documents in theirpossession. The Certificate of Origin issued in this way
shall bear in the Field 9 the phrase “DUPLICATE OF THE
ORIGINAL CERTIFICATE OF ORIGIN NUMBER_DATED_”. The
duplicate Certificate of Origin shall be valid during theterm of the validity of the original Certificate of Origin.
Article 57
Origin Declaration
1.
An origin declaration referred to in subparagraph (b)of Article 53 may be made out, in accordance with this
Article, only by an approved exporter provided for in
Article 58.
2.
An origin declaration may be made out only if the goodconcerned can be considered as an originating good of theexporting Party.
3.
Where the approved exporter is not the producer of thegood located in the exporting Party, an origin declaration
for the good may be made out by the approved exporter on
the basis of:(a)information provided by the producer of the goodto the approved exporter; or(b)a declaration, given by the producer of the goodto the approved exporter, that the good qualifies
as an originating good of the exporting Party.

4.
An approved exporter shall be prepared to submit at
any time, at the request of the competent authority of theexporting Party, all appropriate documents proving that thegood for which the origin declaration was made out
qualifies as an originating good of the exporting Party.

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5.
The text of an origin declaration shall be as provided
for in Annex 4. An origin declaration shall be made out inEnglish by an approved exporter by typing, stamping or
printing on the invoice, the delivery note or any othercommercial document which describes the good concerned in
sufficient detail to enable it to be identified. The origin
declaration shall be considered to be made out on the dateof the issuance of such commercial document.
6.
An origin declaration for a good may be made out by
the approved exporter by the time of or after the shipmentof the good.
7.
An approved exporter who has made out an origin
declaration for a good shall promptly notify in writing to
the competent authority of the exporting Party, when suchapproved exporter realizes that the good does not qualify
as an originating good of the exporting Party. The
competent authority of the exporting Party shall, if it
receives such notification, promptly notify the relevant
authority of the importing Party.
Article 58
Approved Exporter
1.
The competent authority of the exporting Party may
authorize an exporter located in the Party to make out an
origin declaration as an approved exporter on condition
that:
(a)

the exporter makes frequent shipments oforiginating goods of the exporting Party;(b)the exporter has sufficient knowledge andcapability to make out an origin declaration
appropriately and fulfils the conditions set out
in the laws and regulations of the exporting
Party; and(c)the exporter gives the competent authority of theexporting Party a written undertaking that heaccepts full responsibility for any origin
declaration which identifies him as if it had
been signed in manuscript by him.

- 56 -

2.
The competent authority of the exporting Party shallallocate to the approved exporter an authorization number
which shall appear on the origin declaration. The origin
declaration does not have to be signed by the approved
exporter.
3.
The competent authority of the exporting Party shallensure the proper use of the authorization by the approved
exporter.
4.
The competent authority of the exporting Party may
withdraw the authorization at any time. It shall do so inaccordance with the laws and regulations of the exporting
Party where the approved exporter no longer fulfills theconditions referred to in paragraph 1 or otherwise makes anincorrect use of the authorization.
Article 59
Notifications
1.
Upon entry into force of this Agreement, each Party
shall provide the other Party with:(a)the form of its Certificate of Origin; and(b)a register of the names of the certification
bodies and officials accredited to issue
Certificates of Origin, as well as of thespecimen signatures and impressions of stamps
used in the offices of the competent authority or
its certification bodies for the issuance ofCertificates of Origin.

2.
Any change to the register shall be notified inwriting to the other Party. The change shall enter into
force five days after the date of notification or inanother later date indicated in such notification.
3.
The competent authority of the exporting Party shallprovide the importing Party with information on thecomposition of the authorization number and the names,
addresses and authorization numbers of approved exporters
and the dates from which the authorization comes into
effect. Each Party shall notify the other Party any
changes, including the date from which such changes comeinto effect.

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Article 60
Claim for Preferential Tariff Treatment
1.
The importing Party shall grant preferential tariff
treatment in accordance with this Agreement to an
originating good of the exporting Party on the basis of a
Proof of Origin submitted, when it is required, by theimporter who claims preferential tariff treatment at thetime of importation, in accordance with the procedures
applicable in the importing Party.
2.
Notwithstanding paragraph 1, the importing Party shallnot require a Proof of Origin from importers for:(a)an importation of originating goods of theexporting Party whose aggregate customs value
does not exceed US$ 1,500 or its equivalentamount in the Party’s currency, or such higher
amount as may be established by the importing
Party, provided that the importation does notform part of importations that may reasonably beconsidered to have been made separately for the
purpose of avoiding the requirement for a Proofof Origin; or(b)an importation of an originating good of theexporting Party, for which the importing Party
has waived the requirement for a Proof of Origin.

3.
Where an originating good of the exporting Party isimported through one or more non-Parties, the importing
Party may require importers who claim preferential tariff
treatment for that good to submit:
(a)

(b)

in the case of Japan:(i)a copy of the through bill of lading; or(ii)a certificate or any other information givenby the customs authority of such non-Parties
or other relevant entities, which evidencesthat the good has not undergone operations
other than unloading, reloading and anyother operation to preserve it in goodcondition in those non-Parties; andin the case of Peru:- 58 -

(i)in the case of transit or transshipment: thetransportation documents, such as the air
waybill, the bill of lading, or themultimodal or combined transportation
document, that certify the transport fromthe exporting Party to the importing Party,
as the case may be; and(ii)

in the case of storage: the transportation
documents, such as the air waybill, the billof lading, or the multimodal or combinedtransportation document, that certify thetransport from the exporting Party to theimporting Party, as the case may be, as wellas, the documents issued by the customs
authority or other competent authority of
the non-Party that authorized thisoperation, according to its domestic
legislation.

Article 61
Obligations Related to Importations
1.
Except as otherwise provided for in this Chapter, eachParty shall require an importer that claims preferential
tariff treatment for a good imported from the other Partyto:(a)make a written statement in the customs
declaration, based on a valid Proof of Origin,that the good qualifies as an originating good of
the exporting Party;(b)have the Proof of Origin in its possession at thetime the statement referred to in subparagraph(a) is made;(c)

have in its possession the documents referred toin paragraph 3 of Article 60, where applicable;(d)submit the Proof of Origin, as well as the
documents indicated in subparagraph (c) on therequest of the customs authority; and- 59 -

(e)promptly make a corrected declaration and pay any
duties owing where the importer has reason tobelieve that a Proof of Origin on which a
declaration was based contains information thatis not correct.

2.
Where an importer of an originating good at the timeof importation does not have in his possession a Proof of
Origin, the importer may, in accordance with the laws andregulations of the importing Party, apply for a refund of
any excess customs duties paid or deposit imposed as aresult of the goods not having been granted preferential
tariff treatment, on presentation to the customs authorityof the importing Party of the Proof of Origin issued or
made out in accordance with Article 54 or Article 57 and,if required, such other documentation relating to theimportation of the good, within a period not exceeding one
year after the time of importation.
Note: Notwithstanding this paragraph, in the case ofimportation into Japan, refund of any excess
duties paid shall not be applicable.
3.
Paragraph 2 shall not be applicable in the case where
the importer failed to declare to the customs authority of
the importing Party, at the time of importation, that thegood was an originating good under this Agreement, eventhough a valid Proof of Origin was provided to the customs
authority subsequently.
4.
Where an importer claims preferential tariff treatment
for a good, the importing Party may deny preferential
tariff treatment to the good where the good does not
qualify as an originating good of the exporting Party or
where the importer fails to comply with any of the relevant
requirements of this Chapter.
Article 62
Validity of Proof of Origin
1.
A Proof of Origin shall be valid for 12 months fromthe date on which it is issued or made out, and shall be
submitted for a single importation covered under one ormore customs declarations within such period, when it isrequired by the customs authority of the importing Party.

- 60 -

2.
In the event that the good is temporarily admitted orstored under control of the customs authority of theimporting Party, the validation period of the Proof of
Origin may be extended by the amount of time the customs
authority has authorized such operations.
3.
Proofs of Origin which are submitted to the customs
authority of the importing Party after the final date forsubmission specified in paragraph 1 may be accepted for the
purpose of granting preferential tariff treatment, where
the failure to submit these documents by the final date set
is due to exceptional circumstances.
Article 63
Supporting Documents
The documents referred to in paragraph 5 of Article 54
and paragraph 4 of Article 57 used for the purposes ofproving that the goods covered by a Proof of Origin qualify
as originating goods of the exporting Party may consist of,inter alia, the following:(a)direct evidence of the processes carried out by
the exporter or producer to obtain the goods
concerned;(b)documents proving the originating status of thematerials used in a Party, where the documents
are used in accordance with its laws andregulations;(c)documents proving the working or processing ofmaterials in a Party, where these documents areused in accordance with its laws and regulations;or(d)Proofs of Origin stating the originating statusof the materials used, issued or made out in a
Party.

- 61 -

Article 64
Preservation of Documents and Records
1.
The exporter to whom a Certificate of Origin was
issued shall keep the documents referred to in paragraph 5of Article 54 for at least five years after the date on
which the Certificate of Origin was issued.
2.
The competent authority of the exporting Party or its
certification bodies issuing a Certificate of Origin shallkeep a record of the Certificate of Origin, as well as the
supporting information required for the certification, forat least five years after the date on which the Certificateof Origin was issued.
3.
The approved exporter who has made out an origin
declaration shall keep a copy of the origin declaration as
well as the documents referred to in paragraph 4 of Article
57 for at least five years after the date on which theorigin declaration was made out.
4.
The producer of a good who provides a declarationreferred to in subparagraphs 6(a) and 6(b) of Article 54
shall keep the records relating to the origin of the goodfor at least five years after the date on which theCertificate of Origin was issued or after the date on which
the declaration referred to in subparagraph 6(a) of Article
54 was given by the producer to the exporter, except where
the Certificate of Origin is not issued based on the
declaration provided by the producer.
5.
The producer of a good referred to in subparagraph3(b) of Article 57 shall keep the records relating to theorigin of the good for at least five years after the dateon which the declaration referred to in subparagraph 3(b)of Article 57 was given by the producer to the approved
exporter, except where the origin declaration is not madeout based on the declaration provided by the producer.
6.
The records to be kept in accordance with this Article
may include electronic records.

- 62 -

Article 65
Minor Errors
The customs authority of the importing Party shalldisregard minor errors, such as slight discrepancies oromissions, typing errors or protruding from the designatedfield, provided that these minor errors are not such as tocreate doubts concerning the accuracy of the information
included in the Proof of Origin.
Article 66
Verifications Process1.
In order to ensure the proper application of this
Chapter, the Parties shall assist each other to carry out
verification of the information related to the Proof of
Origin, in accordance with this Agreement and theirrespective laws and regulations.
2.
For the purpose of determining whether a good imported
from the other Party meets the requirements of this
Chapter, the importing Party may conduct a verification
through its relevant authority by means of:(a)request of information relating to a Proof of
Origin from the importer;(b)

request of information relating to a Proof of
Origin from the competent authority of theexporting Party on the basis of the Proof of
Origin;(c)request of information relating to a Proof of
Origin from the exporter, the approved exporteror the producer, keeping documents and records inaccordance with Article 64 through the competentauthority of the exporting Party; and- 63 -

(d)request to the exporting Party to check thefacilities used in the production of the good,
through a visit by the competent authority of theexporting Party along with the relevant authorityof the importing Party as an observer to thepremises of the exporter, the approved exporteror the producer, keeping documents and records inaccordance with Article 64 and to provide thecollected information after the visit.

3.
For the purposes of paragraph 2, the relevant
authority of the importing Party shall return a copy of theProof of Origin to the competent authority of the exporting
Party giving the reasons for the request for theverification. Any documents or information obtainedsuggesting that the information given in the Proof of
Origin is incorrect shall be forwarded to the competentauthority of the exporting Party in support of such
request.
4.

5.

(a)

For the purposes of subparagraphs 2(b) and 2(c),the competent authority of the exporting Party
shall provide the information requested in aperiod not exceeding three months after the dateof receipt of the request.

(b)

If the relevant authority of the importing Party
considers necessary, it may require additional
information relating to the Proof of Origin. If
additional information is requested by therelevant authority of the importing Party, thecompetent authority of the exporting Party shallprovide the information requested in a period notexceeding two months after the date of receipt of
the request.

(a)When requesting the exporting Party to conduct a
visit pursuant to subparagraph 2(d), the relevant
authority of the importing Party shall deliver a
written communication with such request to theexporting Party at least 30 days before theproposed date of the visit, the receipt of whichis to be confirmed by the exporting Party.

(b)

The communication referred to in subparagraph5(a) shall include:- 64 -

(i)the identity of the relevant authority of
the importing Party issuing thecommunication;(ii)

the name of the exporter, the approved
exporter or the producer, keeping documents
and records in accordance with Article 64 in
the exporting Party, whose premises arerequested to be visited;(iii)

the proposed date and place of the visit;(iv)

the objective and scope of the proposed
visit, including specific reference to thegood subject of the verification referred toin the Proof of Origin; and(v)

the names and titles of the officials of therelevant authority of the importing Party to
be present during the visit.

(c)

The exporting Party shall respond in writing to
the importing Party, within 30 days after thereceipt of the communication referred to in
subparagraph 5(a), if it accepts or refuses to
conduct the visit requested pursuant to
subparagraph 2(d).

(d)

The exporting Party shall provide within 60 daysor any other mutually agreed period after thelast day of the visit, to the relevant authorityof the importing Party the information obtained
pursuant to subparagraph 2(d).

6.
The relevant authority of the importing Party shall,
within 12 months after the exporting Party receives therequest for verification, provide the competent authorityof the exporting Party with a written determination ofwhether or not the good meets the requirements of this
Chapter, including findings of fact and the legal basis forthe determination.

- 65 -

7.

(a)

The relevant authority of the importing Party may
deny preferential tariff treatment to a goodwhere the importer of the good does not respondto a request for information related to a Proofof Origin from the relevant authority of theimporting Party pursuant to subparagraph 2(a).

(b)

The relevant authority of the importing Party may
deny preferential tariff treatment, and a written
determination thereof shall be sent to thecompetent authority of the exporting Party,
where:(i)the requirements to provide the information
within the period referred to in paragraph 4
or subparagraph 5(d) or to respond to thecommunication referred to in subparagraph5(a) within the period referred to in
subparagraph 5(c) are not met;(ii)

the request referred to in subparagraph 2(d)is refused; or(iii)

the information provided to the relevant
authority of the importing Party pursuant to
subparagraphs 2(b), 2(c) and 2(d) is not
sufficient to prove that the good meets therequirements of this Chapter.

(c)

The customs authority of the importing Party may
suspend preferential tariff treatment to thegoods covered by the Proof of Origin concerned
while awaiting the results of the verification.
However, the suspension of the preferential
tariff treatment shall not be a reason to stop
the release of the goods.

(d)

A Party may suspend preferential tariff treatment
to an importer on any subsequent import of a goodwhen the relevant authority had alreadydetermined that an identical good from the same
producer was not eligible for such treatment,
until it is demonstrated that the good complies
with the provisions under this Chapter.

- 66 -

Article 67
Penalties
Each Party shall adopt or maintain appropriate
penalties or other measures against violations of its laws
and regulations relating to the provisions of this Chapter.
Article 68
Confidentiality
1.
Each Party shall maintain in accordance with its laws
and regulations, the confidentiality of information
provided to it as confidential by the other Party pursuant
to this Chapter, and shall protect that information fromdisclosure.
2.
Information obtained by the relevant authority of theimporting Party pursuant to this Chapter:(a)may only be used by such authority for the
purposes of this Chapter; and(b)shall not be used by the importing Party in any
criminal proceedings carried out by a court or ajudge, unless permission to use such informationis requested by and provided to the importing
Party through the diplomatic channels or otherchannels established in accordance with theapplicable laws and regulations of the exporting
Party.
Article 69
Sub-Committee on Rules of Origin

1.
For the purposes of the effective implementation andoperation of this Chapter, the Parties hereby establish a
Sub-Committee on Rules of Origin (hereinafter referred toin this Article as “the Sub-Committee”).
2.

The functions of the Sub-Committee shall be:(a)reviewing and making appropriate recommendations,as necessary, to the Commission on:- 67 -

(i)the effective, uniform and consistentadministration of this Chapter, including
its interpretation, application andenhancement of cooperation in this regard;(ii)

any amendments to Annex 3, taking into
account the amendment of the Harmonized
System, as well as Annex 4 proposed byeither Party; and(iii)

the Operational Procedures referred to in
Article 70;(b)considering any other matter related to this
Chapter, such as tariff classification andcustoms valuation related to the determination oforigin, calculation of the qualifying value
content, and development of an electronic
certification system, as the Parties may agree;(c)reporting the findings of the Sub-Committee to
the Commission; and(d)other functions assigned by the Commission.

3.
The Sub-Committee shall hold meetings at such times
and venues or by means, as may be agreed by the Parties.
Article 70
Operational ProceduresUpon entry into force of this Agreement, theCommission may adopt Operational Procedures that provide
detailed guidelines regarding the provisions of this
Chapter.
Article 71
Miscellaneous
Communications between the importing Party and theexporting Party shall be conducted in the English language.

- 68 -

Article 72
Transitional Provisions for Goods in Transit or Storage
This Agreement may be applied to goods which comply
with the provisions of this Chapter, and which on the dateof entry into force of this Agreement, are either intransit from the exporting Party to the importing Party orin temporary storage in a bonded warehouse under customs
control. Such application shall be subject to thesubmission to the customs authority of the importing Party,
within four months after the date of entry into force of
this Agreement, of a Certificate of Origin issued
retrospectively or an origin declaration, together with the
documents pursuant to Article 60 showing that the goods
comply with the consignment criteria established in Article
52.

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Chapter 4
Customs Procedures and Trade Facilitation
Article 73
Scope of Application
1.
This Chapter shall apply to customs procedures
required for the clearance of goods traded between theParties and for customs control on goods traded between theParties, including means of transport, which enter or leave
the customs territory of the Parties.
2.
This Chapter shall be implemented by the Parties inaccordance with the laws and regulations of each Party.
Note: For the purposes of this Article and Article 75, theterm “customs territory” means the territory in whichcustoms laws of a Party apply.
Article 74
Objectives
The objectives of this Chapter are:(a)to establish a framework to ensure transparency,
proper application of customs laws and prompt
clearance of goods; and(b)to promote cooperation in the field of customs
procedures,with a view to facilitating trade in goods between theParties and preventing, investigating and repressing any
violation of customs laws.

- 70 -

Article 75
Definition
For the purposes of this Chapter, the term “customs
laws” means the statutory and regulatory provisions
relating to the importation, exportation and transit orstorage of goods, as they relate to prohibitions,
restrictions and other similar controls with respect to the
movement of controlled goods across the boundary of thecustoms territory of each Party.
Article 76
Transparency
1.
Each Party shall ensure that all relevant informationof general application pertaining to its customs laws isreadily available to any interested person, in English to
the extent possible.
2.
When information that has been made available must be
revised due to changes in its customs laws, each Party
shall, to the extent possible, make the revised information
readily available in English sufficiently in advance of theentry into force of the changes to enable interested
persons to take account of them, unless such an advancenotice is precluded.
3.
At the request of any interested person of theParties, each Party shall provide, as quickly andaccurately as possible, information relating to thespecific customs matters raised by the interested person
and pertaining to its customs laws. Each Party shall supply
not only the information specifically requested but also
any other pertinent information which it considers theinterested person should be made aware of.
4.
Each Party shall designate one or more enquiry points
to answer reasonable enquiries from any interested personof the Parties concerning customs matters, and shall makepublicly available, including through its website, thenames and addresses of such enquiry points.

- 71 -

Article 77
Information and Communications Technology
Each Party shall promote the use of information andcommunications technology in its customs procedures.
Article 78
Risk Management
In order to facilitate their customs procedures, theParties shall maintain risk management systems that enable
them to concentrate inspection activities on high risk
goods and that simplify the clearance, including release,and movement of low risk goods.
Article 79
Customs Clearance
1.
The Parties shall apply their respective customs
procedures in a predictable, consistent and transparent
manner.
2.
For prompt customs clearance, including release, ofgoods traded between the Parties each Party shall:(a)simplify its customs procedures;(b)harmonize its customs procedures, to the extent
possible, with relevant international standards
and recommended practices such as those madeunder the auspices of the Customs Co-operation
Council;(c)promote cooperation, wherever appropriate,between its customs authority and:

(d)

(i)

other national authorities of the Party; and(ii)

the trading communities of the Party; andadopt or maintain customs procedures:- 72 -

(i)for checking of the information, including
documents, relating to the clearance ofgoods prior to the arrival of goods to beimported; and(ii)

for allowing goods to be released forimportation without being placed in customs
warehouses as soon as its customs authority
has examined them or decided not to examine
them, provided that:(A)

no offence has been found;(B)

the import license or any otherdocuments required have been acquired;(C)

all permits relating to the customs
procedures concerned have beenacquired; and(D)

any duties and taxes have been paid orthat appropriate action has been taken
to ensure their collection.

Article 80
Separate and Expedited Customs Procedures for Shipment
Each Party shall adopt or maintain separate andexpedited customs procedures for shipment. Such procedures
shall provide a simplified clearance of goods after
submission of all the necessary customs documents inaccordance with the laws and regulations of each Party.

- 73 -

Article 81
Advance Rulings
The importing Party shall adopt or maintain, in
accordance with its laws and regulations, procedures ofadvance ruling that is issued prior to the importation of agood, concerning the tariff classification of the good, thecustoms valuation of the good and the qualification of thegood as an originating good of the exporting Party under
the provisions of Chapter 3, where a written application ismade with all the necessary information by importers of thegood or their authorized representatives, or exporters or
producers of the good in the exporting Party or theirauthorized representatives and the importing Party has no
reasonable grounds to deny the issuance.
Article 82
Review
Each Party shall, in relation to any decision
concerning customs matters taken by the Party, provide
affected parties with easily accessible processes ofadministrative and judicial review. Such review shall be
independent of the official or office making the decision.
Article 83
Customs Cooperation and Exchange of Information
1.
The Parties shall cooperate and exchange information
with each other in the field of customs procedures within
the available resources of their respective customs
authorities. Such cooperation and exchange of information
include mutual administrative assistance and technicalassistance.
2.
Cooperation and exchange of information pursuant toparagraph 1 shall be implemented as provided for in the
Implementing Agreement.
3.
Paragraph 1 of Article 7 shall not apply to theexchange of information under this Article.

- 74 -

Article 84
Penalties
Each Party shall adopt or maintain appropriate
sanctions or other measures against violations of its
customs laws, for the purposes of this Chapter.
Article 85
Sub-Committee on Customs Procedures and Trade Facilitation
1.
For the purposes of the effective implementation andoperation of this Chapter, the Parties hereby establish a
Sub-Committee on Customs Procedures and Trade Facilitation(hereinafter referred to in this Article as “the SubCommittee”).
2.

The functions of the Sub-Committee shall be:(a)reviewing the implementation and operation ofthis Chapter;(b)

identifying areas, relating to this Chapter, tobe improved for facilitating trade between theParties;(c)reporting the findings of the Sub-Committee to
the Commission;(d)consulting on tariff classification issues toresolve any difference that may arise between theParties; and
Note:

(e)

If the issue is not resolved in the courseof consultations referred to in thissubparagraph, it shall be referred to theHarmonized System Committee of the Customs
Co-operation Council.

other functions assigned by the Commission.

3.
The Sub-Committee shall be composed of government
officials of the Parties.
4.
The Sub-Committee shall hold meetings at such times
and venues or by means, as may be agreed by the Parties.

- 75 -

Chapter 5
Sanitary and Phytosanitary Measures
Article 86
Scope of Application
This Chapter shall apply to all sanitary andphytosanitary (hereinafter referred to as “SPS”) measuresof the Parties under the Agreement on the Application of
Sanitary and Phytosanitary Measures in Annex 1A to the WTO
Agreement (hereinafter referred to as “SPS Agreement”),
that may, directly or indirectly, affect trade in goods
between the Parties.
Article 87
Reaffirmation of Rights and Obligations
The Parties reaffirm their rights and obligations
relating to SPS measures under the SPS Agreement.
Article 88
Enquiry Points
Each Party shall designate an enquiry point which isable to answer all reasonable enquiries from the otherParty regarding SPS measures and, if appropriate, toprovide the relevant information.
Article 89
Sub-Committee on SPS Measures
1.
For the purposes of the effective implementation andoperation of this Chapter, the Parties hereby establish a
Sub-Committee on SPS Measures (hereinafter referred to inthis Article as “the Sub-Committee”).
2.

The functions of the Sub-Committee shall be:(a)reviewing the implementation and operation ofthis Chapter;- 76 -

(b)exchanging information on such matters as
occurrences of SPS incidents in the Parties, andchange or introduction of SPS-related regulations
and standards of the Parties, which may, directly
or indirectly, affect trade in goods between theParties in order to improve mutual understandingof each Party’s SPS measures including theiradministrative procedures;(c)

notifying either Party of information on
potential SPS risks recognized by the otherParty;(d)undertaking science-based technical consultations
to identify and address specific issues between
the Parties that may arise from the applicationof SPS measures;(e)consulting on cooperative efforts between theParties in international fora in relation to SPS
measures;(f)

discussing technical cooperation between theParties on SPS measures including capacity
building, technical assistance and exchange ofexperts subject to the availability of
appropriated funds and the applicable laws andregulations of each Party; and(g)other functions assigned by the Commission.

3.
The Sub-Committee shall be composed of government
officials of the Parties with necessary expertise relevantto the issues to be discussed.
4.
The Sub-Committee shall hold meetings at such times
and venues or by means, as may be agreed by the Parties.
5.
For the purposes of this Article, the Sub-Committee
shall be coordinated by:(a)in the case of Japan, the Ministry of Foreign
Affairs, or its successor; and(b)in the case of Peru, the Ministry of Foreign
Trade and Tourism, or its successor.

- 77 -

Chapter 6
Technical Regulations, Standards and Conformity
Assessment Procedures
Article 90
Scope of Application
1.
This Chapter shall apply to technical regulations,standards and conformity assessment procedures as definedin the Agreement on Technical Barriers to Trade in Annex 1A
to the WTO Agreement (hereinafter referred to as “TBTAgreement”), that may affect the trade in goods between theParties.
2.

This Chapter shall not apply to:(a)purchasing specifications prepared bygovernmental bodies for production or consumption
requirements of such bodies; or(b)

SPS measures as defined in Annex A of the SPS
Agreement.
Article 91
Objectives

The objectives of this Chapter are:(a)to increase and facilitate trade between theParties, through the improvement of theimplementation of the TBT Agreement;(b)

to ensure that technical regulations, standards
and conformity assessment procedures do notcreate unnecessary obstacles to trade; and(c)to enhance joint cooperation between the Parties.
Article 92
Definitions

For the purposes of this Chapter, the terms anddefinitions set out in Annex 1 of the TBT Agreement shallapply.

- 78 -

Article 93
Reaffirmation of Rights and Obligations
The Parties reaffirm their rights and obligations
relating to technical regulations, standards and conformity
assessment procedures under the TBT Agreement.
Article 94
International Standards
1.
Each Party shall use relevant international standards
and guides or recommendations to the extent provided inparagraph 4 of Article 2 and paragraph 4 of Article 5 of
the TBT Agreement, as a basis for its technical regulations
and conformity assessment procedures.
2.
Each Party shall encourage its national standardizing
bodies to cooperate with the relevant national
standardizing bodies of the other Party in international
standardizing activities. Such cooperation may take placein regional and international standardizing bodies of which
they are both members.
Article 95
Technical Regulations
1.
Each Party shall give positive consideration toaccepting as equivalent technical regulations of the otherParty, even if these regulations differ from its own,
provided it is satisfied that these regulations adequately
fulfill the objectives of its own regulations.
2.
Where a Party does not accept a technical regulationof the other Party as equivalent to its own, it shall, at
the request of the other Party, explain its decision.
3.
At the request of a Party that has an interest in
developing a technical regulation similar to a technicalregulation of the other Party, such other Party shallprovide, to the extent practicable, relevant information,
including studies or documents, except for confidential
information, on which it has relied in its development.

- 79 -

Article 96
Conformity Assessment
1.
The Parties recognize that a broad range of mechanisms
exists to facilitate the acceptance in a Party of theresults of conformity assessment procedures conducted in
the other Party. Each Party shall, on request of the otherParty, provide information on the range of such mechanisms
used in its Area.
2.
Where a Party does not accept the results of aconformity assessment procedure conducted in the otherParty, it shall, on request of the other Party and subject
to the laws and regulations of that Party, explain thereasons for its decision so that corrective action may betaken by the other Party when appropriate.
3.
Each Party shall, whenever possible, accredit,
designate or recognize conformity assessment bodies in theother Party on terms no less favorable than those it
accords to conformity assessment bodies in its Area. If a
Party accredits, designates or recognizes a body assessing
conformity with a particular technical regulation or
standard in its Area and it refuses to accredit, designate
or recognize a body in the other Party assessing conformity
with that technical regulation or standard, it shall, on
request, explain the reasons for its refusal.
4.
Where a Party declines a request from the other Party
to enter into negotiations to conclude an arrangement forrecognition in its Area of the results of conformity
assessment procedures conducted by conformity assessment
bodies in the other Party, it shall explain the reasons for
its decision.
Article 97
Transparency
1.
Each Party shall notify electronically to the otherParty’s enquiry point, established under Article 10 of the
TBT Agreement, at the same time it submits its notification
to the WTO Secretariat in accordance with the TBTAgreement:(a)its proposed technical regulations and conformity
assessment procedures; and- 80 -

(b)its technical regulations and conformity
assessment procedures adopted to address urgent
problems of safety, health, environmental
protection or national security arising or
threatening to arise.

2.
The notification of technical regulations andconformity assessment procedures shall include a link toor, if requested by the other Party, a copy of, the English
version of such technical regulations and conformity
assessment procedures, where possible, or in case ofvoluminous copies, an English summary of such technicalregulations and conformity assessment procedures that
includes the main requirements thereof.
3.
The Parties shall endeavor to allow a period of atleast 60 days following the notification of proposed
technical regulations and conformity assessment proceduresfor the public and the other Party to provide writtencomments, except where urgent problems of safety, health,environmental protection or national security arise or
threaten to arise. A Party shall give positive
consideration to a reasonable request for extending thecomment period.
4.
Each Party shall, on request of the other Party,
provide information regarding the objectives of, andrationale for, a technical regulation or conformity
assessment procedure that the Party has adopted or is
proposing to adopt.
5.
Each Party shall endeavor to ensure that all adopted
technical regulations and conformity assessment procedures
are available on official websites that are freely andpublicly available. The Parties shall exchange the list of
official websites in a period of 60 days from the entry
into force of this Agreement and any modification to that
list, when appropriate.
6.
Where a Party detains at a port of entry a goodexported from the other Party due to a perceived failure tocomply with a technical regulation, it shall endeavor to
immediately notify the importer of the reasons for thedetention of the good.

- 81 -

Article 98
Technical Cooperation
The Parties shall give positive consideration to
supply each other cooperation and technical assistance, tothe extent possible, in order to, inter alia:(a)encourage the enforcement of this Chapter;(b)

encourage the enforcement of the TBT Agreement;(c)strengthen the corresponding bodies ofstandardization, technical regulation andconformity assessment, including the formationand training of the human resources; and(d)increase the collaboration in internationalorganizations in the areas of standardization andconformity assessment.

Article 99
Sub-Committee on Technical Regulations, Standards
and Conformity Assessment Procedures
1.
The Parties hereby establish a Sub-Committee on
Technical Regulations, Standards and Conformity Assessment
Procedures (hereinafter referred to in this Article as “theSub-Committee”).
2.

The functions of the Sub-Committee shall be:(a)monitoring the implementation and operation ofthis Chapter;(b)

promptly addressing any issue that a Party raises
related to the development, adoption orapplication of technical regulations, standards
and conformity assessment procedures under this
Chapter and the TBT Agreement;(c)enhancing joint cooperation in the development
and improvement of technical regulations,standards and conformity assessment procedures;(d)exchanging information on technical regulations,standards and conformity assessment procedures;- 82 -

(e)reviewing this Chapter in light of any
developments under the WTO Committee on Technical
Barriers to Trade established under Article 13 of
the TBT Agreement, and if necessary, developing
recommendations for amendments to this Chapter;(f)

as it considers appropriate, reporting to theCommission on the implementation and operation ofthis Chapter;(g)establishing, if necessary to achieve theobjectives of this Chapter, ad hoc working groups
to deal with specific issues or sectors;(h)exchanging information on the work in regionaland multilateral fora engaged in activities
related to technical regulations, standards andconformity assessment procedures;(i)taking any steps the Parties may consider thatwill assist them in implementing this Chapter andthe TBT Agreement and in facilitating trade
between the Parties; and(j)other functions assigned by the Commission.

3.
The Sub-Committee shall be composed of government
officials of the Parties.
4.
The Sub-Committee shall hold meetings at such times
and venues or by means, as may be agreed by the Parties.
5.
For the purposes of this Article, the Sub-Committee
shall be coordinated by:(a)in the case of Japan, the Ministry of Foreign
Affairs, or its successor; and(b)in the case of Peru, the Ministry of Foreign
Trade and Tourism, or its successor.

6.
The authorities referred to in paragraph 5 will be
responsible for coordinating with the relevant institutions
and persons in their Areas as well as ensuring that suchinstitutions and persons are convened when necessary.

- 83 -

Article 100
Information Exchange
Any information or explanation requested by a Party
pursuant to this Chapter shall be provided by the otherParty, in print or electronically, within a reasonable
period of time agreed between the Parties and, if possible,
within 60 days.

- 84 -

Chapter 7
Cross-Border Trade in Services
Article 101
Scope of Application
1.
This Chapter shall apply to measures adopted or
maintained by a Party affecting cross-border trade inservices by service suppliers of the other Party. Suchmeasures include measures affecting:

2.

(a)

the supply of a service;(b)

the purchase or use of, or payment for, aservice;(c)the access to and the use of services offered tothe public generally, including distribution,transport or telecommunications networks andservices, in connection with the supply of aservice;(d)the presence in its Area of a service supplier ofthe other Party; and(e)the provision of a bond or other form offinancial security as a condition for the supply
of a service.

This Chapter shall not apply to:(a)in respect of air transport services, measures
affecting traffic rights, however granted, or
measures affecting services directly related tothe exercise of traffic rights, other than
measures affecting:(i)aircraft repair and maintenance services;(ii)

the selling and marketing of air transport
services; and(iii)

computer reservation system (CRS) services;and- 85 -

(b)government procurement as defined in Article 144.

3.
Articles 103, 106, 110 and 111 shall also apply tomeasures by a Party affecting the supply of a service bycovered investments.
Note: The Parties understand that none of theprovisions of this Chapter, including thisparagraph and any of its Annexes, is subject to
Article 18 (Settlement of Investment Disputes
between a Contracting Party and an Investor of
the Other Contracting Party) of the BIT.
4.
This Chapter shall not 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 that Party and shall not confer any right on thatnational with respect to that access or employment.
5.
This Chapter shall not apply to services supplied in
the exercise of governmental authority. A service suppliedin the exercise of governmental authority means a service
which is supplied neither on a commercial basis nor incompetition with one or more service suppliers.
6.
Annex 7 provides for supplementary provisions to this
Chapter, including scope of application and definitions,and the BIT, on measures by a Party affecting trade in
financial services.
Note: For the purposes of this paragraph, “trade in
financial services” refers to trade in financial
services as defined in subparagraph 1(f) of
Article 2 of Annex 7.
Article 102
Definitions
1.

For the purposes of this Chapter:(a)the term “aircraft repair and maintenanceservices” means such activities when undertaken
on an aircraft or a part thereof while it iswithdrawn from services and does not include socalled line maintenance;- 86 -

(b)the term “computer reservation system (CRS)
services” means services provided by computerized
systems that contain information about air
carriers’ schedules, availability, fares and farerules, through which reservations can be made or
tickets may be issued;(c)the term “covered investments” means, withrespect to a Party, investments of an investor of
the other Party in the Area of the Party existingon the date of entry into force of this Agreement
or established, acquired or expanded thereafter;(d)the term “cross-border trade in services” or“cross-border supply of services” means the
supply of a service:(i)from the Area of a Party into the Area ofthe other Party;(ii)

in the Area of a Party by a person of that
Party to a person of the other Party; or(iii)

by a national of a Party in the Area of theother Party;(e)the term “enterprise of a Party” means anenterprise constituted or organized under thelaws of a Party;(f)the term “existing” means in effect on the dateof entry into force of this Agreement, except forentry 35 of Part 1 of Annex 5;(g)

the term “measure adopted or maintained by a
Party” means any measure adopted or maintained
by:

(h)

(i)

any level of government or authority of a
Party; and(ii)

non-governmental bodies in the exercise of
powers delegated by any level of government
or authority of a Party;

the term “national” means a natural person who isa national of a Party under its laws;- 87 -

(i)the term “selling and marketing of air transport
services” means opportunities for the air carrier
concerned to sell and market freely its airtransport services including all aspects ofmarketing such as market research, advertisingand distribution. These activities do not include
the pricing of air transport services nor theapplicable conditions;(j)the term “service supplier” means a person that
supplies or seeks to supply a service;
Note:

2.

Where the service is not supplied orsought to be supplied directly by anenterprise but through its covered
investments such as a branch or arepresentative office, the service
supplier (i.e. the enterprise) shall,
nonetheless, through such covered
investments be accorded the treatment
provided for service suppliers under this
Chapter. Such treatment shall be extended
to the covered investments through which
the service is supplied or sought to besupplied and need not be extended to any
other parts of the service supplierlocated outside the Area of a Party where
the service is supplied or sought to besupplied.

(k)

the term “supply of a service” includes the
production, distribution, marketing, sale anddelivery of a service; and(l)the term “traffic rights” means the rights forscheduled and non-scheduled services to operate
and/or to carry passengers, cargo and mail for
remuneration or hire from, to, within, or over a
Party, including points to be served, routes tobe operated, types of traffic to be carried,capacity to be provided, tariffs to be charged
and their conditions, and criteria fordesignation of airlines, including such criteria
as number, ownership and control.

For the purposes of this Chapter, an enterprise is:- 88 -

(a)“owned” by a person if more than 50 percent of
the equity interests in it is beneficially ownedby the person; and(b)“controlled” by a person if the person has thepower to name a majority of its directors orotherwise to legally direct its actions.
Article 103
Subsidies1.
Each Party shall promptly and at least annually informthe other Party of the introduction of any new subsidy or
grant which significantly affects trade in services coveredby its specific commitments under the GATS.
2.
A Party which considers that it is adversely affectedby a subsidy or grant of the other Party may request
consultations with the other Party on such matters. The
other Party shall accord sympathetic consideration to such
requests.
Note: “Consultations” referred to in this Chapter does
not mean consultations under Article 208.
3.
If the results of the negotiations referred to inparagraph 1 of Article XV of the GATS (or the results ofany similar negotiation undertaken in other multilateralfora in which the Parties participate) enter into force for
the Parties, they shall jointly review the results of thenegotiations with a view to incorporating into this
Chapter, as appropriate, any discipline agreed in suchnegotiations.
Article 104
National Treatment
Each Party shall accord to services and service
suppliers of the other Party treatment no less favorable
than that it accords, in like circumstances, to its own
services and service suppliers.

- 89 -

Note: For greater certainty, nothing in this Article shallbe construed to require either Party to compensate
for any inherent competitive disadvantages which
result from the foreign character of the relevant
services or service suppliers.
Article 105
Most-Favored-Nation Treatment
Each Party shall accord to services and service
suppliers of the other Party treatment no less favorable
than that it accords, in like circumstances, to services
and service suppliers of any non-Party.
Article 106
Market Access
Neither Party shall maintain or adopt either on thebasis of a regional subdivision or on the basis of its
entire Area measures defined as:(a)limitations on the number of service suppliers
whether in the form of numerical quotas,
monopolies, exclusive service suppliers or therequirements of an economic needs test;(b)limitations on the total value of service
transactions or assets in the form of numericalquotas or the requirement of an economic needs
test;

(c)

limitations on the total number of service
operations or on the total quantity of service
output expressed in terms of designated numericalunits in the form of quotas or the requirement ofan economic needs test;
Note:

This subparagraph does not cover measuresof a Party which limit inputs for the
supply of services.

- 90 -

(d)limitations on the total number of natural
persons that may be employed in a particularservice sector or that a service supplier may
employ and who are necessary for, and directly
related to, the supply of a specific service inthe form of numerical quotas or the requirementof an economic needs test; and(e)measures which restrict or require specific typesof legal entity or joint venture through which a
service supplier may supply a service.
Article 107
Local Presence

Neither Party shall require a service supplier of theother Party to establish or maintain a representative
office, a branch or any form of enterprise, or to beresident, in its Area as a condition for the cross-border
supply of a service.
Article 108
Non-Conforming Measures
1.

Articles 104 through 107 shall not apply to:(a)any existing non-conforming measure that ismaintained by:
(i)

(ii)

with respect to Japan:(A)

the central government or a prefecture,
as set out in its Schedule in Part 1 ofAnnex 5; or(B)

a local government other thanprefectures; andwith respect to Peru:(A)

the central government or a regional
government, as set out in its Schedulein Part 2 of Annex 5; or(B)

a local government;- 91 -

(b)the continuation or prompt renewal of any nonconforming measure referred to in subparagraph(a); or(c)an amendment or modification to any nonconforming measure referred to in subparagraph(a), to the extent that the amendment or
modification does not decrease the conformity ofthe measure, as it existed immediately before theamendment or modification, with Articles 104
through 107.

2.
Articles 104 through 107 shall not apply to any
measure that a Party adopts or maintains with respect tosectors, sub-sectors or activities, as set out in its
Schedule in Annex 6.
Article 109
Notification
1.
In the case where a Party makes an amendment or
modification to any existing non-conforming measure as set
out in its Schedule in Annex 5 in accordance with
subparagraph 1(c) of Article 108, the Party shall notify
the other Party, as soon as possible, of such amendment or
modification.
2.
In the case where a Party adopts any measure after theentry into force of this Agreement, with respect tosectors, sub-sectors or activities as set out in its
Schedule in Annex 6, the Party shall, to the extent
possible, notify the other Party of such measure.
Article 110
Transparency
Further to Chapter 1:(a)each Party shall endeavor, to the extent
possible, to respond to inquiries from interested
persons regarding its regulations relating to thesubject matter of this Chapter; and- 92 -

(b)where each Party adopts regulations relating to
the subject matter of this Chapter, it shall, tothe extent possible, publish comments received
from the public and results of its consideration
with respect to the proposed regulations.
Note:

For greater certainty, a Party may
consolidate the comments and results, andpublish them in a separate document fromthe one that sets forth the final
regulations.
Article 111
Domestic Regulation

1.
Where a Party requires authorization for the supply ofa service, its competent authorities shall, within areasonable period of time after the submission of an
application considered complete under its laws andregulations, inform the applicant of the decision
concerning the application. At the request of theapplicant, the competent authorities of that Party shallprovide, without undue delay, information concerning thestatus of the application.
2.
With a view to ensuring that any measure adopted or
maintained by a Party in any services sector relating to
the qualification requirements and procedures, technicalstandards and licensing requirements of service suppliersof the other Party does not constitute an unnecessary
barrier to trade in services, each Party shall ensure thatsuch measure:(a)

is based on objective and transparent criteria,such as the competence and ability to supply theservice;(b)

is not more burdensome than necessary to ensure
the quality of the service; and(c)in the case of licensing procedures, is not in
itself a restriction on the supply of theservice.

- 93 -

3.
Paragraph 2 is binding upon a Party only in sectors inwhich it has undertaken specific commitments in its
Schedule under the GATS. Paragraph 2 shall be applied, tothe extent possible, to the sectors where a Party has notundertaken specific commitments in its Schedule under the
GATS.
Note: For the purposes of this paragraph, the term
“sector” means one or more, or all, sub-sectorsof the service concerned, as specified in a
Party’s Schedule under the GATS.
4.
The Parties affirm their commitments with respect tothe development of any necessary disciplines pursuant toparagraph 4 of Article VI of the GATS. To the extent thatany such disciplines are adopted by the WTO Members, theParties shall review them jointly with a view toincorporating them into this Chapter as appropriate.
Article 112
Recognition
1.
For the purposes of the fulfillment, in whole or inpart, of its standards or criteria for the authorization,
licensing or certification of service suppliers, andsubject to the requirements of paragraph 4, a Party may
recognize the education or experience obtained,
requirements met, or licenses or certifications granted ina particular country. Such recognition, which may beachieved through harmonization or otherwise, may be based
upon an agreement or arrangement with the country concernedor may be accorded autonomously.
2.
Where a Party recognizes, autonomously, or by anagreement or arrangement, the education or experienceobtained, requirements met, or licenses or certifications
granted in a non-Party, nothing in Article 105 shall be
construed to require the Party to accord such recognition
to the education or experience obtained, requirements met,or licenses or certifications granted in the other Party.

- 94 -

3.
A Party that is a party to an agreement or arrangement
referred to in paragraph 2, whether existing or future,
shall afford adequate opportunity for the other Party, ifthat other Party is interested, to negotiate its accession
to such an agreement or arrangement, or to negotiate one
comparable with it. Where a Party accords recognition
autonomously, it shall afford adequate opportunity for theother Party to demonstrate that education or experienceobtained, requirements met, or licenses or certifications
granted in that other Party should be recognized.
4.
Neither Party shall accord recognition in a mannerthat would constitute a means of discrimination between
countries in the application of its standards or criteria
for the authorization, licensing or certification ofservice suppliers, or a disguised restriction on crossborder trade in services.
Article 113
Payments and Transfers
1.
Each Party shall permit all transfers and payments
relating to the cross-border supply of services to be madefreely and without delay into and out of its Area.
2.
Each Party shall permit such transfers and payments
relating to the cross-border supply of services to be madein a freely usable currency at the market rate of exchange
prevailing at the time of transfer or payment.
3.
Notwithstanding paragraphs 1 and 2, a Party may
prevent or delay a transfer or payment through theequitable, non-discriminatory and good faith application ofits laws relating to:(a)bankruptcy, insolvency or the protection of therights of creditors;(b)issuing, trading or dealing in securities,
futures, options or derivatives;(c)financial reporting or record keeping oftransfers when necessary to assist law
enforcement or financial regulatory authorities;(d)criminal or penal offences; or- 95 -

(e)ensuring compliance with orders or judgments injudicial or administrative proceedings.

4.
Nothing in this Chapter shall affect the rights andobligations of the Parties as members of the International
Monetary Fund under the Articles of Agreement of theInternational Monetary Fund, including the use of exchange
actions which are in conformity with the Articles ofAgreement of the International Monetary Fund, provided thata Party shall not impose restrictions on any capitaltransactions inconsistently with the obligations under this
Chapter regarding such transactions, except under Article
13, or at the request of the International Monetary Fund.
Article 114
Implementation
The Parties shall consult to review the implementationof this Chapter and consider other matters of mutualinterest affecting cross-border trade in services within
the framework of the Commission established under Article
14.
Article 115
Denial of Benefits
1.
A Party may deny the benefits of this Chapter to aservice supplier of the other Party that is an enterpriseof the other Party, where the former Party establishes thatthe enterprise is owned or controlled by persons of a nonParty, and the former Party:(a)does not maintain diplomatic relations with thenon-Party; or(b)adopts or maintains measures with respect to the
non-Party that prohibit transactions with theenterprise or that would be violated or
circumvented if the benefits of this Chapter wereaccorded to the enterprise.

- 96 -

2.
Subject to prior notification and consultation, aParty may deny the benefits of this Chapter to a service
supplier of the other Party that is an enterprise owned orcontrolled by persons of a non-Party and that has no
substantial business activities in the Area of the otherParty.

- 97 -

Chapter 8
Telecommunications Services
Article 116
Scope of Application
1.

This Chapter shall apply to:(a)measures adopted or maintained by a Party
relating to access to and use of public
telecommunications transport networks andservices;(b)measures adopted or maintained by a Party
relating to obligations of suppliers of public
telecommunications transport networks andservices; and(c)other measures adopted or maintained by a Party
relating to public telecommunications transport
networks and services.

2.
Articles 125 and 131 shall also apply totelecommunications services.
3.
This Chapter shall not apply to measures by a Party
affecting broadcasting services, including cabledistribution of radio and television programming, as
defined in its laws and regulations.
4.

Nothing in this Chapter shall be construed to:(a)require a Party to authorize a service supplierof the other Party to establish, construct,acquire, lease, operate or supply
telecommunications transport networks or services
other than specifically provided in thisAgreement;(b)require a Party (or require a Party to oblige
service suppliers under its jurisdiction) toestablish, construct, acquire, lease, operate or
supply telecommunications transport networks orservices not offered to the public generally; or- 98 -

(c)prevent a Party from prohibiting persons
operating private networks from using their
networks to supply public telecommunicationstransport networks or services to third persons.
Article 117
Definitions

For the purposes of this Chapter:(a)the term “cost-oriented” means based on cost, andmay include a reasonable profit, and may involve
different cost methodologies for different
facilities or services;(b)the term “end user” means a final consumer of or
subscriber to a public telecommunicationstransport network or service, including a service
supplier other than a supplier of public
telecommunications transport networks orservices;(c)the term “essential facilities” means facilities
of a public telecommunications transport networkor service that:(i)are exclusively or predominantly provided bya single or limited number of suppliers; and(ii)cannot feasibly be economically or
technically substituted in order to provide
a service;(d)the term “leased circuits” means
telecommunications facilities between two or moredesignated points that are set aside for the
dedicated use of, or availability to, particularusers;(e)the term “major supplier” means a supplier which
has the ability to materially affect the terms ofparticipation, having regard to price and supply,in the relevant market for basic
telecommunications services as a result of:- 99 -

(i)control over essential facilities; or(ii)

use of its position in the market;

Note 1: For Peru, rural telephone companies thathave at least 80 percent of their total
fixed subscriber lines in operation inrural areas may not be considered as
major suppliers.
Note 2: For the purposes of this Chapter, basic
telecommunications services do notinclude non-public telecommunications
services and value added services. Each
Party may classify which services in its
Area are value-added services.
(f)the term “non-discriminatory” means treatment noless favorable than that accorded to any otheruser of like public telecommunications transport
networks or services under like circumstances;(g)the term “public telecommunications transport
network” means the public telecommunications
infrastructure which permits telecommunications
between and among defined network termination
points;(h)the term “public telecommunications transport
service” means any telecommunications transport
service required, explicitly or in effect, by a
Party to be offered to the public generally,
typically involving customer-supplied information
between two or more points without any end-to-end
change in the form or content of the customer’s
information. Such services may include, interalia, telegraph, telephone, telex and datatransmission;(i)the term “telecommunications” means thetransmission and reception of signals by any
electromagnetic means including by photonicmeans;(j)the term “telecommunications regulatory body”
means the body responsible for the regulation of
telecommunications; and- 100 -

(k)the term “users” means consumers of, subscribers
to or suppliers of public telecommunicationstransport networks or services.
Article 118
Access and Use

1.
Each Party shall ensure that any service supplier ofthe other Party is accorded access to and use of public
telecommunications transport networks and services in atimely fashion, on transparent, reasonable and nondiscriminatory terms and conditions. This obligation shallbe applied, inter alia, through paragraphs 2 through 6.
2.
Each Party shall ensure that service suppliers of theother Party have access to and use of any public
telecommunications transport network or service offeredwithin or across the border of that Party, including
private leased circuits, and to this end shall ensure,
subject to the provisions of paragraphs 5 and 6, that suchsuppliers are permitted:(a)to purchase or lease and attach terminal or otherequipment which interfaces with the network andwhich is necessary to supply their services;(b)

to interconnect private leased or owned circuitswith public telecommunications transport networks
and services or with circuits leased or owned byother service suppliers;(c)to use operating protocols of their choice in the
supply of any service, other than as necessary toensure the availability of telecommunicationstransport networks and services to the publicgenerally; and(d)to perform switching, signaling and processing
functions.

- 101 -

3.
Each Party shall ensure that service suppliers of theother Party may use public telecommunications transport
networks and services for the movement of information
within and across borders, including for intra-corporate
communications of such service suppliers, and for access to
information contained in data bases or otherwise stored inmachine-readable form in either Party or in any othermember of the WTO.
4.
Notwithstanding the provisions of paragraph 3, a Party
may take such measures as are necessary:(a)to ensure the security and confidentiality ofmessages; or(b)

to protect the personal data of users of public
telecommunications transport networks orservices,

subject to the requirement that such measures are notapplied in a manner which would constitute a means ofarbitrary or unjustifiable discrimination or a disguised
restriction on trade in services.
5.
Each Party shall ensure that no condition is imposedon access to and use of public telecommunications transport
networks and services other than as necessary:(a)to safeguard the public service responsibilities
of suppliers of public telecommunicationstransport networks and services, in particular
their ability to make their networks or services
available to the public generally; or(b)

to protect the technical integrity of public
telecommunications transport networks orservices.

6.
Provided that they satisfy the criteria set out inparagraph 5, conditions for access to and use of public
telecommunications transport networks and services may
include:(a)a requirement to use specified technicalinterfaces, including interface protocols, forinterconnection with public telecommunicationstransport networks and services;- 102 -

(b)requirements, where necessary, for the interoperability of public telecommunicationstransport services and to encourage theachievement of the goals set out in Article 131;(c)

type approval of terminal or other equipment
which interfaces with public telecommunicationstransport networks and technical requirements
relating to the attachment of such equipment tosuch networks;(d)restrictions on inter-connection of private
leased or owned circuits with public
telecommunications transport networks or services
or with circuits leased or owned by other service
suppliers; or(e)notification, permit, registration and licensing.

Note: For greater certainty, this Article shall notprohibit a Party from requiring any service supplierof the other Party to obtain a license, concession,or other type of authorization to supply public
telecommunications transport networks or services in
its Area.
Article 119
Number Portability
Each Party shall ensure that suppliers of public
telecommunications transport networks or services in its
Area provide number portability for mobile services and anyother services designated by that Party, to the extent
technically feasible, on a timely basis and on reasonable
terms and conditions.
Note: For the purposes of this Article, Peru may take into
account the economic feasibility of providing number
portability.

- 103 -

Article 120
Competitive Safeguards
1.
Each Party shall adopt and maintain appropriate
measures for the purpose of preventing suppliers who, alone
or together, are a major supplier from engaging in orcontinuing anti-competitive practices.
2.
The anti-competitive practices referred to inparagraph 1 shall include, in particular:(a)engaging in anti-competitive cross-subsidization;(b)using information obtained from competitors with
anti-competitive results; and(c)not making available to other suppliers of public
telecommunications transport networks orservices, on a timely basis, technicalinformation about essential facilities andcommercially relevant information which arenecessary for them to supply services.
Article 121
Treatment by Major Suppliers

Each Party shall ensure that a major supplier in its
Area accords to suppliers of public telecommunicationstransport networks and services of the other Party
treatment no less favorable than that such major supplieraccords in like circumstances to itself, its subsidiaries
and affiliates, or any non-affiliated service suppliers
regarding:(a)the availability, provisioning, rates or qualityof like telecommunications services; and(b)the availability of technical interfaces
necessary for interconnection.

Note: For Japan, this Article shall be applied only to amajor supplier which has control over essential
facilities.

- 104 -

Article 122
ResaleEach Party shall ensure that suppliers of public
telecommunications transport services in its Area do not
impose unreasonable or discriminatory conditions orlimitations on the provision of the resale services bysuppliers of public telecommunications transport networks
or services of the other Party.
Article 123
Interconnection
1.
Each Party shall ensure that a major supplier in its
Area provides interconnection for the facilities andequipments of suppliers of public telecommunicationstransport networks and services of the other Party at any
technically feasible point in the network. Suchinterconnection shall be provided:(a)under non-discriminatory terms, conditions(including technical standards andspecifications) and rates;(b)with a quality no less favorable than thatprovided by such major supplier for its own like
services, or for like services of non-affiliatedservice suppliers or of its subsidiaries or otheraffiliates;(c)in a timely fashion, on terms, conditions(including technical standards andspecifications) and cost-oriented rates that aretransparent, reasonable, having regard to
economic feasibility, and sufficiently unbundled
so that the supplier of public telecommunicationstransport networks or services of the other Party
need not pay for network components or facilities
that it does not require for the services to beprovided; and(d)upon request, at points in addition to the
network termination points offered to themajority of users, subject to charges thatreflect the cost of construction of necessary
additional facilities.

- 105 -

2.
Each Party shall require major suppliers in its Area tomake publicly available reference interconnection offers orother standard interconnection offers containing the rates,
terms and conditions that the major suppliers offer generally
to suppliers of public telecommunications transport networks
or services.
3.
Each Party shall ensure that suppliers of public
telecommunications transport networks or services of theother Party may interconnect their facilities andequipments with those of major suppliers in its Area
pursuant to at least one of the following options:(a)a reference interconnection offer, at a minimum,
containing a list and description of theinterconnection-related services offered, theterms and conditions for such services, theoperational and technical requirements, and theprocedures or processes that will be used toorder and supply such services;(b)

another standard interconnection offer containing
the terms and conditions, and, where possible,
rates that the major suppliers offer generally tosuppliers of public telecommunications transport
networks or services;(c)the terms and conditions of an interconnection
agreement in force; or(d)the terms and conditions provided throughnegotiation of a new interconnection agreement.

4.
Each Party shall ensure that the procedures applicablefor interconnection to a major supplier are made publicly
available.
5.
Each Party shall ensure that a major supplier in its
Area makes publicly available either its interconnection
agreements, reference interconnection offer or anotherstandard interconnection offer.

- 106 -

6.
Each Party shall ensure that a major supplier does notuse or provide commercially sensitive or confidential
information on suppliers of public telecommunicationstransport networks or services or end users thereof, which
was acquired through its interconnection business with
telecommunications facilities of the suppliers of the
public telecommunications transport networks or services,
for purposes other than such interconnection business.
7.

(a)Japan shall apply paragraphs 1 through 3 and 6
only to a major supplier which has control overessential facilities.

(b)

Peru may apply paragraphs 1 through 3 and 6 only
to a major supplier which has control overessential facilities.

Article 124
Provisioning and Pricing of Leased Circuit Services
Each Party shall ensure that a major supplier in its
Area provides suppliers of public telecommunicationstransport networks and services of the other Party withleased circuit services that are public telecommunicationstransport networks or services on terms and conditions, andat rates, that are reasonable, non-discriminatory andtransparent.
Note: For Japan, this Article shall be applied only to amajor supplier which has control over essential
facilities.
Article 125
Independent Telecommunications Regulatory Body
1.
Each Party shall ensure that its telecommunications
regulatory body is separate from, and not accountable to,any supplier of telecommunications services.
2.
Each Party shall ensure that the decisions of, and theprocedures used by, its telecommunications regulatory bodyare impartial with respect to all market participants.

- 107 -

Article 126
Universal Service
Each Party has the right to define the kind ofuniversal service obligations it wishes to maintain. Suchobligations shall not be regarded as anti-competitive perse, provided that they are administered in a transparent,
non-discriminatory and competitively neutral manner, andare not more burdensome than necessary for the kind ofuniversal service defined by the Party.
Article 127
Public Availability of Licensing Criteria
1.
Where a license, concession, permit, registration orother type of authorization is required for the supply of
public telecommunications transport networks or services,each Party shall make publicly available:(a)all the licensing or other authorization criteria
and procedures, and the period of time normallyrequired to reach a decision concerning anapplication for a license, concession, permit,
registration or other type of authorization; and(b)the terms and conditions of individual licenses,
concessions, permits, registrations or other typeof authorizations it has issued.

2.
The competent authority of a Party shall notify theapplicant of the outcome of its application without undue
delay after a decision has been taken. In case a decision
is taken to deny an application for a license, concession,
permit, registration or other type of authorization, thecompetent authority of the Party shall make known to theapplicant, upon request, the reason for the denial.
Article 128
Allocation and Use of Scarce Resources
1.
Each Party shall carry out any procedures for the
allocation and use of scarce resources related totelecommunications, including frequencies, numbers andrights of way, in an objective, timely, transparent andnon-discriminatory manner.

- 108 -

2.
Each Party shall make publicly available the current
state of allocated frequency bands, but shall not be
required to provide detailed identification of frequencies
allocated for specific government uses.
3.
A Party’s measures allocating and assigning spectrum
and managing frequency are not measures that are per se
inconsistent with Article 106. Accordingly, each Party
retains the right to establish and apply spectrum andfrequency management policies that have the effect oflimiting the number of suppliers of public
telecommunications transport networks or services, provided
that it does so in a manner consistent with otherprovisions of this Agreement. Such right includes theability to allocate frequency bands, taking into accountcurrent and future needs and spectrum availability.
Article 129
Transparency
Each Party shall ensure that its measures relating toaccess to and use of public telecommunications transport
networks and services are made publicly available,
including measures relating to:(a)tariffs and other terms and conditions ofservice;(b)specifications of technical interfaces;(c)bodies responsible for the preparation, amendment
and adoption of standards affecting such accessand use;(d)conditions applying to attachment of terminal orother equipment to the public telecommunicationstransport networks; and(e)notifications, permit, registration or licensing
requirements, if any.

- 109 -

Article 130
Settlement of Telecommunications Disputes
1.
Each Party shall ensure that suppliers of public
telecommunications transport networks or services of theother Party may have timely recourse to its
telecommunications regulatory body or dispute settlement
body to settle disputes in accordance with its laws andregulations.
2.
Each Party shall ensure, in accordance with its laws
and regulations, that any supplier of public
telecommunications transport networks or services aggrievedby a determination or decision of its relevanttelecommunications regulatory body may petition that bodyfor reconsideration of that determination or decision.
Neither Party shall permit such a petition to constitutegrounds for non-compliance with such determination ordecision of the said body unless an appropriate authority
suspends or withdraws such determination or decision.
Note: Suppliers of public telecommunications transport
networks or services may not petition forreconsideration of administrative rulings,
unless it is provided for in a Party’s laws andregulations.
3.
Each Party shall ensure that any supplier of public
telecommunications transport networks or services aggrievedby a final determination or decision of its relevanttelecommunications regulatory body may obtain judicial
review of such determination or decision by an independent
judicial authority. Neither Party shall permit such review
to constitute grounds for non-compliance with suchdetermination or decision of the said body unless therelevant judicial authority withholds, suspends or repeals
such determination or decision.

- 110 -

Article 131
Relation to International Organizations
The Parties recognize the importance of international
standards for global compatibility and inter-operability oftelecommunications networks and services, and undertake topromote such standards through the work of relevantinternational bodies, including the International
Telecommunication Union and the International Organizationfor Standardization.
Article 132
Relationship to Other Chapters
In the event of any inconsistency between this Chapter
and Chapter 1 except for Articles 10 and 11, Chapter 7
except for Article 8 of Annex 7, Chapter 12 or the BIT,
including any of their Annexes, this Chapter shall prevailto the extent of the inconsistency. In the event of any
inconsistency between this Chapter and Articles 10 or 11,
or Article 8 of Annex 7, such Articles shall prevail to theextent of the inconsistency.

- 111 -

Chapter 9
Entry and Temporary Stay of Nationals for Business Purposes
Article 133
General Principles
1.
This Chapter reflects the preferential trading
relationship between the Parties, the mutual desire of theParties to facilitate entry and temporary stay of nationals
for business purposes on a reciprocal basis in accordancewith Annex 8, the need to establish transparent criteria
and procedures for entry and temporary stay, and the needto ensure border security and to protect the domestic labor
force and permanent employment in either Party.
2.
Each Party shall apply its measures relating to theprovisions of this Chapter in accordance with paragraph 1,
and, in particular, shall apply expeditiously thosemeasures so as to avoid unduly impairing or delaying tradein goods or services, or conduct of investment activities
under this Agreement.
Article 134
Scope of Application
1.
This Chapter shall apply to measures affecting theentry and temporary stay of nationals of a Party who enter
the other Party for business purposes. Nothing in this
Chapter shall be construed to impose obligations withrespect to other Chapters.
2.
This Chapter shall not apply to measures regarding
nationality or citizenship, or residence or employment on apermanent basis.
3.
Nothing in this Chapter shall be construed to preventa Party from applying measures to regulate the entry ofnationals of the other Party into, or their temporary stayin, the former Party, including those measures necessary toprotect the integrity of, and to ensure the orderly
movement of natural persons across, its borders, provided
that such measures are not applied in such a manner as tounduly impair or delay trade in goods or services, or
conduct of investment activities under this Agreement.

- 112 -

Note: The sole fact of requiring a visa for natural
persons of a certain nationality and not for
those of others shall not be regarded as unduly
impairing or delaying trade in goods orservices, or conduct of investment activities
under this Agreement.
Article 135
Definitions
For the purposes of this Chapter:(a)the term “entry and temporary stay” means entry
into and stay in a Party by a national forbusiness purposes of the other Party without theintent to establish permanent residence;(b)

the term “immigration measures” means any
measures affecting entry and temporary stay ofnationals for business purposes;(c)the term “national” means a natural person who isa national of a Party under its laws; and(d)the term “national for business purposes” means anational of a Party who is engaged in theactivities referred to in Annex 8.
Article 136
Grant of Entry and Temporary Stay

1.
Each Party shall grant entry and temporary stay tonationals for business purposes of the other Party whocomply with existing immigration measures applicable toentry and temporary stay in accordance with this Chapter
including the provisions of Annex 8.
2.
Each Party shall ensure that fees charged by its
competent authorities on application for entry andtemporary stay do not in themselves represent anunjustifiable impediment to the entry and temporary stay ofnationals for business purposes of the other Party under
this Chapter and are charged having regard to theadministrative costs involved.

- 113 -

Article 137
Provision of Information and Facilitation of Procedure
Further to Article 5, and recognizing the importanceto the Parties of transparency of information regarding
entry and temporary stay, each Party shall:(a)provide to the other Party such materials as will
enable that other Party to become acquainted withits measures relating to this Chapter;(b)no later than six months after the date of entry
into force of this Agreement, prepare, publish
and make available in the Parties, explanatory
material in a consolidated document regarding therequirements for entry and temporary stay under
this Chapter, including references to applicablelaws and regulations, in such a manner that will
enable nationals of the other Party to becomeacquainted with them;(c)to the extent possible, collect, maintain and,upon request by the other Party, make available
to that other Party, in accordance with its laws
and regulations, data respecting the granting ofentry and temporary stay under this Chapter tonationals for business purposes of the otherParty who have been issued immigration
documentation; and(d)endeavor, to the maximum extent possible, to takemeasures to simplify the requirements, and to
facilitate and expedite the procedures, relating
to entry and temporary stay of nationals forbusiness purposes of the other Party inaccordance with its laws and regulations.
Article 138
Sub-Committee on Entry and Temporary Stayof Nationals for Business Purposes

1.
The Parties hereby establish a Sub-Committee on Entry
and Temporary Stay of Nationals for Business Purposes(hereinafter referred to in this Article as “the SubCommittee”).

- 114 -

2.

The functions of the Sub-Committee shall be:(a)reviewing the implementation and operation ofthis Chapter;(b)establishing the procedures to exchange
information on measures that affect the entry andtemporary stay of nationals for business purposes
under this Chapter;(c)considering the development of measures tofurther facilitate the entry and temporary stayof nationals for business purposes on areciprocal basis;(d)observing the issues established under Article
139; and(e)other functions as assigned by the Commission.

3.
The Sub-Committee shall hold meetings at least once
every three years, and at such times and venues or by means,as may be agreed by the Parties.
Article 139
Cooperation
Taking into account the principles set out in Article
133, the Parties will:(a)exchange views regarding visa policy for thenationals for business purposes referred to in
Annex 8;(b)exchange views on the implementation of programsand technology in the framework affecting theentry and temporary stay of nationals forbusiness purposes under this Chapter, including
those related to the use of biometric technology
and advanced passenger information systems; and(c)endeavor to coordinate actively in multilateralfora, in order to promote the facilitation of theentry and temporary stay of nationals forbusiness purposes under this Chapter.

- 115 -

Article 140
Dispute Settlement
1.
A Party may not initiate the dispute settlement
procedures provided for in Chapter 15 regarding a refusal
to grant entry and temporary stay under this Chapter
unless:(a)the matter involves a pattern of practice; and(b)the nationals for business purposes of the Party
concerned have exhausted the administrative
remedies, where available, regarding theparticular matter.

2.
The remedies referred to in subparagraph 1(b) shall bedeemed to be exhausted if a final determination in thematter has not been issued by the competent authority ofthe other Party within one year after the date of theinstitution of the administrative remedy, and the failure
to issue such determination is not attributable to delaycaused by the nationals referred to in subparagraph 1(b).
Article 141
Immigration Measures
Nothing in this Agreement shall impose any obligationon either Party regarding its immigration measures, except
as specifically identified in this Chapter and Chapters 1,
15 and 16.
Article 142
Transparency
1.
Further to Article 5, each Party shall endeavor, tothe extent possible, to respond to the inquiries frominterested persons regarding applications and procedures
relating to the entry and temporary stay of nationals forbusiness purposes.

- 116 -

2.
Each Party shall, within a reasonable period of timethat should not exceed 20 working days after an application
requesting entry visa is considered complete under its
domestic laws and regulations, inform the applicant of thedecision concerning the application. At the request of theapplicant, the Party shall endeavor to provide, without
undue delay, information concerning the status of theapplication.

- 117 -

Chapter 10
Government Procurement
Article 143
Scope of Application
1.
This Chapter shall apply to any measure adopted or
maintained by a Party relating to government procurement by
any contractual means, including through such methods aspurchase or as lease, rental, or hire purchase, with orwithout an option to buy:(a)by procuring entities specified in Annex 9;(b)of goods, services and construction services
specified in Annex 9; and(c)where the value of the contracts to be awarded isestimated to be not less than the thresholds
specified in Annex 9 at the time of publicationof a notice of intended procurement.

Note: Measures adopted or maintained by a Party
relating to government procurement include thoserelating to public work concessions contracts.
2.
Neither Party shall prepare, design, or otherwise
structure any government procurement contract in order toavoid the obligations under this Chapter.
Note: Nothing in this Chapter shall prevent a Party
from developing new procurement policies,
procedures or contractual means, provided thatthey are consistent with this Chapter.
Article 144
Definitions
For the purposes of this Chapter:- 118 -

(a)The term “government procurement” means
procurement for governmental purposes of goods,
services, or any combination thereof, notprocured with a view to commercial sale orresale, or for use in the production or supply of
goods or services for commercial sale or resale;(b)

the term “in writing” or “written” means any
worded or numbered expression that can be read,
reproduced, and later communicated. It may
include electronically transmitted and stored
information;(c)the term “services” includes construction
services, unless otherwise specified;(d)the term “standard” means a document approved bya recognized body, that provides, for common andrepeated use, rules, guidelines, orcharacteristics for goods or services, or related
processes and production methods, with which
compliance is not mandatory. It may also include
or deal exclusively with terminology, symbols,
packaging, marking or labeling requirements asthey apply to a good, service, process, or
production method; and(e)the term “supplier” means a person that provides
or could provide goods or services to a procuring
entity.
Article 145
National Treatment and Non-Discrimination

1.
With respect to any measure regarding government
procurement covered by this Chapter, each Party shallprovide immediately and unconditionally to the goods andservices of the other Party and to the suppliers of theother Party offering such goods and services, treatment noless favorable than that accorded to domestic goods,
services and suppliers.
2.
With respect to any measure regarding government
procurement covered by this Chapter, each Party shallensure:- 119 -

(a)that its procuring entities do not treat alocally-established supplier less favorably thananother locally-established supplier on the basisof the degree of affiliation to, or ownership by,a natural person or an enterprise of the otherParty; and(b)that its procuring entities do not discriminate
against a locally-established supplier on thebasis that the goods or services offered by that
supplier for a particular procurement are goods
or services of the other Party.

3.
This Article shall not apply to: customs duties andcharges of any kind imposed on, or in connection with,
importation; the method of levying such duties and charges;
other import regulations and formalities; nor to measures
affecting trade in services other than measures regarding
government procurement covered by this Chapter.
Article 146
Rules of Origin
A Party shall not apply rules of origin to goods orservices imported or supplied for purposes of government
procurement covered by this Chapter from the other Party
which are different from the rules of origin applied by theformer Party in the normal course of trade.
Note: Rules of origin to services applied in the normal
course of trade shall be understood in accordancewith subparagraphs (f) and (g) of Article XXVIII of
the GATS.
Article 147
Valuation of Contracts
In determining the value of contracts for the purposesof implementing this Chapter:(a)valuation shall take into account all forms of
remuneration, including any premiums, fees,
commissions and interest receivable;- 120 -

(b)the selection of the valuation method by aprocuring entity shall not be used, nor shall any
procurement requirement be divided, with theintention of avoiding the application of this
Chapter; and(c)in cases where an intended procurement specifies
the need for option clauses, the basis forvaluation shall be the total value of the maximum
permissible procurement, inclusive of optionalpurchases.
Article 148
Prohibition of Offsets

1.
Each Party shall ensure that its procuring entities donot, in the qualification and selection of suppliers, goods
or services, or in the evaluation of tenders and the award
of contracts, impose, seek or consider offsets.
2.
For the purposes of this Article, offsets means
conditions considered, sought or imposed by a procuring
entity prior to or in the course of its procurement processthat encourage local development or improve its Party’sbalance of payments accounts, by means of requirements oflocal content, licensing of technology, investment,
counter-trade or similar requirements.
Article 149
Technical Specifications
1.
Technical specifications laying down thecharacteristics of the goods or services to be procured,
such as quality, performance, safety and dimensions,symbols, terminology, packaging, marking and labeling, or
the processes and methods for their production andrequirements relating to conformity assessment proceduresprescribed by procuring entities, shall not be prepared,
adopted or applied with a view to, or with the effect of,creating unnecessary obstacles to trade between theParties.
2.
Any technical specifications prescribed by procuring
entities shall, where appropriate:- 121 -

(a)be specified in terms of performance rather thandesign or descriptive characteristics; and(b)

be based on international standards, where such
exist; otherwise, on national technicalregulations, recognized national standards, orbuilding codes.

3.
Each Party shall ensure that its procuring entities do
not prescribe technical specifications that require orrefer to a particular trademark or trade name, patent,
copyright, design or type, specific origin or producer or
supplier, unless there is no sufficiently precise or
intelligible way of describing the procurement requirements
and provided that, in such cases, words such as “orequivalent” are included in the tender documentation.
4.
Each Party shall ensure that its procuring entities do
not seek or accept, in a manner which would have the effectof precluding fair competition, advice which may be used in
the preparation or adoption of any technical specifications
for a specific procurement from a person that may have acommercial interest in the procurement.
5.
For greater certainty, each Party, including its
procuring entities, may, in accordance with this Article,
prepare, adopt, or apply technical specifications topromote the conservation of natural resources or protect
the environment.
Article 150
Tendering Procedures
1.
Each Party shall ensure that its procuring entities
award their contracts by tendering procedures in accordancewith its laws and regulations, in compliance with this
Chapter.
2.
Each Party shall ensure that its procuring entities do
not provide to any supplier information with regard to a
specific procurement in a manner which would have theeffect of precluding competition.
3.
Each Party shall ensure that its procuring entities
conduct procurement in a transparent and impartial mannerthat:- 122 -

(a)is consistent with this Chapter;(b)

avoids conflicts of interest; and(c)prevents corrupt practices.
Article 151
Qualification of Suppliers

1.
In the process of qualifying suppliers, each Party
shall ensure that its procuring entities do notdiscriminate against suppliers of the other Party.
Qualification procedures shall be consistent with thefollowing:(a)any conditions for participation in tendering
procedures shall be published in adequate time toenable interested suppliers to initiate and, tothe extent that it is compatible with efficient
operation of the procurement process, complete
the qualification procedures;(b)

any conditions for participation in tendering
procedures shall be limited to those which areessential to ensure the potential supplier’s
capability to fulfill the contract in question;(c)

any conditions for participation required fromsuppliers, including financial guarantees,
technical qualifications and informationnecessary for establishing the financial,commercial and technical capacity of suppliers,
as well as the verification of qualifications,shall be no less favorable to suppliers of theother Party than to domestic suppliers. The
financial, commercial and technical capacity of a
supplier shall be judged on the basis both ofthat supplier’s global business activity as well
as of its activity in the Area of the Party ofthe procuring entity, taking due account of thelegal relationship between the supply
organizations;- 123 -

(d)the process of, and the time required for,qualifying suppliers shall not be used in orderto keep suppliers of the other Party off a
suppliers’ list or from being considered for aparticular intended procurement;(e)a Party, including its procuring entities, shallnot adopt or apply any registration system or
qualification procedure with the purpose or theeffect of creating unnecessary obstacles to theparticipation of suppliers of the other Party inits procurement;(f)procuring entities shall base their determinationon the conditions specified in advance in notices
or tender documentation;(g)

procuring entities may require relevant priorexperience where essential to meet requirementsof the procurement;(h)procuring entities shall recognize as qualified
suppliers such suppliers of the other Party whomeet the conditions for participation in aparticular intended procurement and shall allow
them to participate in the procurement. Suppliers
requesting to participate in a particularintended procurement who may not yet be qualified
shall also be considered, provided there issufficient time to complete the qualification
procedure;(i)

procuring entities may maintain permanent listsof qualified suppliers. The entities shallensure:(i)that suppliers may apply for qualification
at any time; and(ii)

that all qualified suppliers so requesting
are included in the lists within areasonably short time;- 124 -

(j)if, after publication of the notice of intended
procurement under paragraph 1 of Article 152, a
supplier not yet qualified requests toparticipate in an intended procurement, the Partyor the procuring entity shall endeavor topromptly start procedures for qualification;(k)

any supplier having requested to become aqualified supplier shall be advised by the
procuring entities concerned of the decision inthis regard. Where a procuring entity rejects anapplication for qualification or ceases torecognize a supplier as qualified, that entity
shall, on request of the supplier, promptly
provide a written explanation; and(l)each Party shall ensure that:(i)each procuring entity and its constituent
parts follow a single qualification
procedure, except in cases of duly
substantiated need for a different
procedure; and(ii)

efforts be made to minimize differences inqualification procedures between procuring
entities.

2.
Nothing in paragraph 1 shall preclude the exclusion of
any supplier on grounds such as bankruptcy, liquidation or
insolvency, or false declarations relating to a
procurement, provided that such an action is consistent
with the national treatment and non-discrimination
provisions of this Chapter.
Article 152
Notice of Intended Procurement
1.
For each case of intended procurement, each Party
shall ensure that its procuring entities make publicly
available in advance in the appropriate publication listed
in Annex 9, a notice of intended procurement inviting
interested suppliers to participate in that procurement,
except as provided for in Article 157.

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2.
The information in each notice of intended procurement
shall include a description of the intended procurement,
any conditions that suppliers must fulfill to participate
in the procurement, the name of the procuring entity, theaddress where all documents relating to the procurement may
be obtained and the time-limits for submission of tenders.
3.
Each Party shall endeavor to ensure that its procuring
entities make publicly available notices of intended
procurement in a timely manner through means which offer
the widest possible and non-discriminatory access tointerested suppliers. These means may be accessible free ofcharge, through a single electronic point of access.
4.
If, after making publicly available a notice ofintended procurement in any case of intended procurement,
but before the time set for opening or receipt of tenders
as specified in the notice or the tender documentation, it
becomes necessary to amend or re-issue the notice, theamendment or the re-issued notice shall be made publicly
available in the same manner as the original notice. Any
significant information given to one supplier with respect
to a particular intended procurement shall be given
simultaneously to all other suppliers concerned, in
adequate time to permit the suppliers to consider suchinformation and to respond to it.
Article 153
Notice of Planned Procurement
Procuring entities are encouraged to publish in theappropriate paper or electronic medium, as early as
possible in the fiscal year, a notice regarding their
future procurement plans (hereinafter referred to as“notice of planned procurement”). The notice of planned
procurement should include the subject matter of the
procurement and the planned date of the publication of thenotice of intended procurement.
Article 154
Time-Limits for Tendering
Each Party shall ensure that:- 126 -

(a)any prescribed time-limit is adequate to allow
suppliers of the other Party as well as domestic
suppliers to prepare and submit tenders before
the closing of the tendering procedures; and(b)

in determining any such time-limit, its procuring
entities, consistent with their own reasonableneeds, take into account such factors as thecomplexity of the intended procurement, theextent of subcontracting anticipated, the normal
time for transmitting tenders by mail fromforeign as well as domestic points and the delays
in making publicly available notices ofprocurement.
Article 155
Tender Documentation1.
Tender documentation provided to suppliers shallcontain all information necessary to permit them to prepare
and submit responsive tenders.
2.
Each Party shall ensure that its procuring entities
make tender documentation accessible, or, upon request,
forward the tender documentation, to any supplierparticipating in the tendering procedure, and reply
promptly to any reasonable request for explanations
relating thereto.
3.
Each Party shall ensure that its procuring entities
reply promptly to any reasonable request for relevant
information submitted by a supplier participating in thetendering procedure, on condition that such information
does not give that supplier an advantage over its
competitors in the procedure for the award of the contract.

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Article 156
Awarding of Contracts
1.
To be considered for award, a tender must, at the timeof opening, conform to the essential requirements of thenotice of intended procurement or tender documentation andbe from a supplier which complies with the conditions forparticipation. If a procuring entity has received a tenderabnormally lower or exceptionally more advantageous thanother tenders submitted, it may enquire with the tenderer
to ensure that the tenderer can comply with the conditionsof participation and be capable of fulfilling the terms ofthe contract.
2.
Unless in the public interest a procuring entity
decides not to issue the contract, the entity shall makethe award to the tenderer who has been determined to be
fully capable of undertaking the contract and whose tenderis either the lowest tender or determined to be the mostadvantageous in terms of the specific evaluation criteria
set forth in the notice of intended procurement or tender
documentation.
Article 157
Limited Tendering
1.
Articles 151 through 156 need not apply in thefollowing conditions, provided that the tendering procedure
under this Article is not used by procuring entities of a
Party with a view to avoiding maximum possible competition
or in a manner which would constitute a means of
discrimination against the suppliers of the other Party orprotection to domestic producers or suppliers:(a)in the absence of tenders in response to thetender pursuant to Articles 151 through 156, or
when the tenders submitted have been collusive inaccordance with the laws and regulations of theformer Party, or not in conformity with theessential requirements in the tender, or fromsuppliers who do not comply with the conditions
for participation provided for in accordance withthis Chapter, on condition that the requirementsof the initial tender are not substantiallymodified in the contract as awarded;- 128 -

(b)when, for works of art or for reasons connectedwith protection of exclusive rights, such as
patents or copyrights, or in the absence ofcompetition for technical reasons, the goods orservices can be supplied only by a particularsupplier and no reasonable alternative or
substitute exists;(c)in so far as is strictly necessary when, forreasons of extreme urgency brought about by
events unforeseeable by the procuring entity, thegoods or services could not be obtained in timeby means of the tendering procedures pursuant to
Articles 151 through 156;(d)

for additional deliveries by the original
supplier of goods or services that were notincluded in the initial procurement where achange of supplier for such additional goods orservices:

(e)

(i)

cannot be made for economic or technicalreasons such as requirements ofinterchangeability or interoperability withexisting equipment, software, services, or
installations procured under the initial
procurement; or(ii)would cause significant inconvenience orsubstantial duplication of costs for the
procuring entity;

when a procuring entity procures prototypes or afirst good or service which are developed at its
request in the course of, and for, a particular
contract for research, experiment, study ororiginal development. When such contracts havebeen fulfilled, subsequent procurements of such
goods or services shall be subject to Articles
151 through 156;

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Note:

Original development of a first good orservice may include limited production or
supply in order to incorporate the resultsof field testing and to demonstrate thatthe good or service is suitable for
production or supply in quantity toacceptable quality standards. It does notextend to quantity production or supply toestablish commercial viability or torecover research and development costs.

(f)for goods purchased on a commodity market;(g)

for purchases made under exceptionallyadvantageous conditions which only arise in thevery short term. This provision is intended tocover unusual disposals by enterprises which are
not normally suppliers, or disposal of assets ofbusinesses in liquidation or receivership. It is
not intended to cover routine purchases from
regular suppliers; and(h)in the case of contracts awarded to the winner ofa design contest provided that the contest has
been organized in a manner which is consistent
with the principles of this Chapter, notably as
regards the publication, in the sense of Article
152, of a notice of intended procurement tosuitably qualified suppliers, to participate insuch a contest which shall be judged by anindependent jury with a view to design contracts
being awarded to the winners.

2.
Each Party shall ensure that, whenever it is necessary
for its procuring entities to resort to the tendering
procedures under paragraph 1, the entities maintain arecord or prepare a written report providing specificjustification for such procedures.
Article 158
Transparency of Procurement Information
1.
Each Party shall ensure that its procuring entities
make publicly available, in an appropriate publication
listed in Annex 9, after the award of each contract,
information such as:- 130 -

(a)the description of the goods or services procured
and, where possible, their quantity;(b)

the name and address of the entity awarding thecontract;(c)the date of award;(d)the name and address of the winning tenderer;(e)the value of the winning award; and(f)the procurement method used.

2.
Each Party shall ensure that its procuring entities,
on request from a supplier of either Party, promptly
provide information including, when the supplier is an
unsuccessful tenderer, pertinent information concerning thereasons why its tender was not selected and on thecharacteristics and relative advantages of the tenderselected as well as the name of the winning tenderer.
3.
Where a supplier of a Party is an unsuccessful
tenderer, the Party may seek, without prejudice to theprovisions under Chapter 15, such additional information on
the contract award as may be necessary to ensure that the
procurement was made fairly and impartially. The otherParty shall provide information on both the characteristics
and relative advantages of the wining tender and thecontract price. Normally, this latter information may bedisclosed by the former Party provided it exercises thisright with discretion. In cases where release of thisinformation would prejudice competition in future tenders,
this information shall be confidential and not be disclosed
except after consultation with and agreement of the otherParty.

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Article 159
Challenge Procedures
1.
In the event of a complaint by a supplier that there
has been a breach of this Chapter in the context of agovernment procurement, each Party shall encourage thesupplier to seek resolution of its complaint in
consultation with the procuring entity. In such instances
the procuring entity shall accord impartial and timely
consideration to any such complaint, in a manner that is
not prejudicial to obtaining corrective measures under thechallenge system.
2.
Each Party shall provide non-discriminatory, timely,transparent and effective procedures enabling suppliers tochallenge alleged breaches of this Chapter arising in thecontext of government procurements in which they have, or
have had, an interest.
3.
Each Party shall provide its challenge procedures inwriting and make them generally available.
4.
Each Party shall ensure that documentation relating to
all aspects of the process concerning government
procurement covered by this Chapter shall be retained atleast for three years.
5.
The interested supplier may be required to initiate achallenge procedure and notify the procuring entity within
specified time-limits from the time when the basis of thecomplaint is known or reasonably should have been known,
but in no case within a period of less than 10 days.
6.
Challenges shall be heard by an impartial andindependent reviewing authority with no interest in theoutcome of the government procurement and the members ofwhich are secure from external influence during the term of
appointment. A reviewing authority which is not a court
shall either be subject to judicial review or shall haveprocedures which provide at least the following:(a)participants can be heard before an opinion is
given or a decision is reached;(b)participants can be represented and accompanied;- 132 -

7.

(c)participants shall have access to allproceedings;(d)proceedings can take place in public;(e)

opinions or decisions are given in writing with astatement describing the basis for the opinions
or decisions;(f)witnesses can be presented; and(g)documents are disclosed to the reviewing
authority.

Challenge procedures shall provide for:(a)rapid interim measures to correct breaches ofthis Chapter and to preserve commercial
opportunities. Such action may result insuspension of the procurement process. However,procedures may provide that overriding adverse
consequences for the interests concerned,
including the public interest, may be taken into
account in deciding whether such measures should
be applied;(b)

an assessment and, where appropriate, a decisionon the justification of the challenge; and(c)where appropriate, correction of breaches of this
Chapter or compensation for the loss or damages
suffered, which may be limited to costs fortender preparation or protest.

8.
With a view to the preservation of the commercial andother interests involved, the challenge procedure shallnormally be completed within a reasonable time.
Article 160
Use of Electronic Means in Government Procurement
1.
The Parties shall seek to provide opportunities forgovernment procurement to be undertaken through theInternet or a comparable computer-based telecommunications
network.

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2.
In order to facilitate commercial opportunities for
its suppliers under this Chapter, each Party shall endeavor
to adopt or maintain a single electronic portal for accessto comprehensive information on government procurement
supply opportunities in its Area, and information on
measures relating to government procurement shall beavailable.
3.
The Parties shall encourage, to the extent possible,
the use of electronic means for the provision of tender
documents and the receipt of tenders.
4.
The Parties shall endeavor to ensure the adoption ofpolicies and procedures for the use of electronic means ingovernment procurement that:(a)protect documentation from unauthorized andundetected alteration; and(b)provide appropriate levels of security for data
on, and passing through, the procuring entity’s
network.
Article 161
Exceptions

1.
Nothing in this Chapter shall be construed to preventa Party from taking any action or not disclosing any
information which it considers necessary for the protectionof its essential security interests relating to the
procurement of arms, ammunition or war materials, or to
procurement indispensable for national security or fornational defense purposes.
2.
Subject to the requirement that such measures are notapplied in a manner that would constitute a means ofarbitrary or unjustifiable discrimination between theParties where the same conditions prevail, or a disguised
restriction on trade, nothing in this Chapter shall be
construed to prevent a Party from imposing, enforcing ormaintaining measures:(a)necessary to protect public morals, order orsafety;- 134 -

(b)necessary to protect human, animal or plant lifeor health;(c)necessary to protect intellectual property; or(d)relating to goods or services of handicapped
persons, of philanthropic institutions or of
prison labor.

Note: It is understood that subparagraph (b) includes
measures to protect the environment.
Article 162
Rectifications or Modifications
1.
A Party shall notify the other Party of its
rectifications or, in exceptional cases, othermodifications relating to Annex 9, along with theinformation as to the likely consequences of the change forthe mutually agreed coverage provided in this Chapter. If
the rectifications or other modifications are of a purely
formal or minor nature, notwithstanding Article 223, theyshall become effective provided that no objection from theother Party has been raised within 30 days. In other cases,
the Parties shall consult the proposal and any claim forcompensatory adjustments with a view to maintaining abalance of rights and obligations and a comparable level ofmutually agreed coverage provided in this Chapter prior tosuch rectification or other modification. In the event ofan agreement between the Parties not being reached, theParty which has received such notification may haverecourse to the dispute settlement procedure under Chapter
15.
2.
Notwithstanding any other provision of this Chapter, aParty may undertake reorganizations of its procuring
entities, including programs through which the procurementof such entities is decentralized or the corresponding
government functions cease to be performed by any
government entity, whether or not subject to this Chapter.
In cases of reorganizations, compensation need not be
proposed. Neither Party shall undertake suchreorganizations to avoid the obligations of this Chapter.

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Article 163
Privatization of Procuring Entities
When government control over a procuring entity
specified in Annex 9 has been effectively eliminated,notwithstanding that the government may possess holding
thereof or appoint members of the board of directors
thereto, this Chapter shall no longer apply to that entity
and compensation need not be proposed. A Party shall notify
the other Party of the name of such entity before
elimination of government control or as soon as possible
thereafter.
Article 164
Denial of Benefits
1.
A Party may deny the benefits of this Chapter to an
enterprise of the other Party if the enterprise is owned orcontrolled by persons of a non-Party, and the former Party:(a)does not maintain diplomatic relations with thenon-Party; or(b)adopts or maintains measures with respect to the
non-Party that prohibit transactions with theenterprise or that would be violated or
circumvented if the benefits of this Chapter wereaccorded to the enterprise.

2.
Subject to prior notification and consultation, aParty may deny the benefits of this Chapter to a supplierof the other Party that is an enterprise of the otherParty, where the denying Party establishes that theenterprise is owned or controlled by persons of a non-Party
and has no substantial business activities in the Area ofthe other Party.

- 136 -

Article 165
Further Negotiation
In the event that after the entry into force of thisAgreement a Party offers a non-Party additional advantagesof access to its government procurement market beyond what
the other Party has been provided with under this Chapter,the former Party shall, upon request of the other Party,
enter into negotiations with the other Party with a view toextending those advantages to the other Party on areciprocal basis.
Article 166
Sub-Committee on Government Procurement1.
For the purposes of the effective implementation andoperation of this Chapter, the Parties hereby establish a
Sub-Committee on Government Procurement (hereinafterreferred to in this Article as “the Sub-Committee”).
2.

The functions of the Sub-Committee shall be:(a)analyzing available information on each Party’s
government procurement market, including
statistical information;(b)evaluating the effective access of suppliers of a
Party to the government procurement market of theother Party covered by this Chapter;(c)monitoring the application of the provisions of
this Chapter and providing a forum to identify
and address any problems or other issues that may
arise;(d)reporting the findings of the Sub-Committee to
the Commission; and(e)other functions assigned by the Commission.

- 137 -

3.
The Parties shall cooperate, on mutually agreed terms,
to increase understanding of their respective government
procurement systems, with a view to maximizing for the
suppliers of both Parties the access to their respective
government procurement markets. For this purpose, eachParty shall develop and implement, within one year after
the entry into force of this Agreement, concrete measures
for the cooperation, which may include training andorientation programs for government personnel or interested
suppliers regarding such aspects as how to identify
government procurement opportunities and how to participate
in the respective government procurement markets. In
developing such measures, special attention should be given
to Small and Medium Enterprises (SMEs), including microenterprises, in each Party.
4.
The Sub-Committee shall be composed of government
officials of the Parties.
5.
The Sub-Committee shall hold meetings at such times
and venues or by means, as may be agreed by the Parties.

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Chapter 11Intellectual Property Rights
Article 167
General Provisions
1.
The Parties shall grant and ensure adequate, effective
and non-discriminatory protection of intellectual property
and provide for measures for the enforcement ofintellectual property rights against infringement thereof,
counterfeiting and piracy, in accordance with theprovisions of this Chapter and the international agreements
to which both Parties are parties.
2.
The Parties shall also promote efficiency andtransparency in the administration of intellectual propertysystem.
3.
The Parties reaffirm their existing rights andobligations under the Agreement on Trade-Related Aspects ofIntellectual Property Rights in Annex 1C to the WTO
Agreement (hereinafter referred to in this Chapter as “theTRIPS Agreement”) and other multilateral agreements
relating to intellectual property to which both Parties are
parties, including multilateral agreements concluded under
the auspices of the World Intellectual Property
Organization (hereinafter referred to in this Chapter as“the WIPO”). Nothing in this Chapter shall derogate fromexisting rights and obligations that the Parties have under
the TRIPS Agreement or other multilateral agreements
relating to intellectual property to which both Parties are
parties.
Note: For the purposes of this Article and Article
178, the term “existing” means in effect on thedate of entry into force of this Agreement.
4.
The term “intellectual property” referred to in this
Chapter shall mean all categories of intellectual property:(a)that are subject of Articles 174 through 180;
and/or(b)that are under the TRIPS Agreement and/or the
relevant international agreements referred to in
the TRIPS Agreement.

- 139 -

Article 168
National Treatment
Each Party shall accord to nationals of the otherParty treatment no less favorable than the treatment it
accords to its own nationals with regard to the protectionof intellectual property in accordance with Articles 3 and
5 of the TRIPS Agreement.
Note: For the purposes of this Article and Article 169:(a)“nationals” shall have the same meaning as in
the TRIPS Agreement; and(b)“protection” shall include matters affecting theavailability, acquisition, scope, maintenanceand enforcement of intellectual property rights
as well as those matters affecting the use of
intellectual property rights specificallyaddressed in this Chapter.
Article 169
Most-Favored-Nation Treatment

With regard to the protection of intellectual
property, any advantage, favor, privilege or immunity
granted by a Party to the nationals of a non-Party shall beaccorded immediately and unconditionally to the nationalsof the other Party, in accordance with Articles 4 and 5 of
the TRIPS Agreement.
Article 170
Streamlining and Harmonization of Procedural Matters1.
For the purposes of providing efficient administrationof its intellectual property system, each Party shallendeavor to take measures to streamline its administrative
procedures concerning intellectual property.

- 140 -

2.
Each Party shall use a classification for patents andutility models in accordance with the Strasbourg Agreement
Concerning the International Patent Classification, ofMarch 24, 1971, as amended. Each Party shall use aclassification of goods and services in accordance with theNice Agreement Concerning the International Classificationof Goods and Services for the Purposes of the Registrationof Marks, of June 15, 1957, as amended.
Article 171
Acquisition and Maintenance of Intellectual Property Rights
1.
Where the acquisition of an intellectual property
right is subject to the right being granted or registered,each Party shall ensure that, irrespective of whether anapplication for the granting or registration of an
intellectual property right is filed as a national or as aninternational application under the applicableinternational agreement, the procedures for granting or
registration of the right, subject to compliance with thesubstantive conditions for acquisition of the right, areconducive to the granting or registration within areasonable period of time so as to avoid unwarranted
curtailment of the period of protection.
2.
Each Party shall provide a system for the registrationof trademarks, industrial designs and patents which shall
include:(a)a requirement to provide to the applicant a
communication in writing, which may beelectronic, of the decision with reasons for arefusal of the application;(b)

an opportunity for the applicant to appeal
against administrative refusal;(c)an opportunity for the applicant to ask forjudicial review of the final administrativerefusal; and(d)an opportunity for interested parties:(i)to petition to oppose, if so provided in its
laws and regulations, an application or aregistration; and- 141 -

(ii)to seek cancellation or invalidation of theregistration.
Article 172
Transparency

For the purposes of further promoting transparency inthe administration of its intellectual property system,
each Party shall take appropriate measures available to theextent possible under its laws and regulations to publish
or make available to the public information on applications
and/or registrations of intellectual property rights whereapplicable in its laws and regulations and other relevant
information on its intellectual property system.
Article 173
Promotion of Public Awareness Concerning
Protection of Intellectual Property
The Parties shall take necessary measures to enhance
public awareness of protection of intellectual property
including educational and dissemination projects on the useof intellectual property as well as on the enforcement ofintellectual property rights.
Article 174
Patents
Each Party shall ensure that any application for apatent is not rejected solely on the ground that the
subject matter claimed in the application is related to acomputer program. Nevertheless, the provision of this
Article shall not prejudice the autonomy of each Party to
exclude from patentability computer programs as such.

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Article 175
Industrial Designs
Each Party shall ensure adequate and effective
protection of industrial designs. Each Party shall also
ensure that, at the request of an applicant for industrial
design registration, the registrability of the industrial
design concerned may be considered by the competentauthority based on the design of a part of an article
instead of that of the article as a whole.
Article 176
Trademarks
1.
Each Party shall grant adequate and effective
protection to trademark right holders of goods or services.
Any sign, or any combination of signs, capable ofdistinguishing the goods or services of one undertaking
from those of other undertakings, shall be capable ofconstituting a trademark. Such signs, in particular words
including personal names, letters, numerals, figurative
elements, and combinations of colors as well as any
combination of such signs, shall be eligible forregistration as trademarks. Where signs are not inherently
capable of distinguishing the relevant goods or services,each Party may make registrability depend on
distinctiveness acquired through use. Each Party may
require, as a condition of registration, that signs bevisually perceptible.
2.
Each Party shall protect well-known marks inaccordance with Article 6bis of the Paris Convention for
the Protection of Industrial Property (1967) (hereinafterreferred to in this Chapter as “the Paris Convention”) andparagraphs 2 and 3 of Article 16 of the TRIPS Agreement.

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Article 177
Geographical Indications
1.
For the purposes of this Article, the term“geographical indications” shall have the same meaning as
in paragraph 1 of Article 22 of the TRIPS Agreement.
Nonetheless, nothing in this Agreement shall require a
Party to amend its laws and regulations on the protectionof geographical indications or on the protection ofappellations of origin which are consistent with the TRIPS
Agreement.
2.
Each Party shall ensure adequate and effective
protection to geographical indications, in accordance with
the TRIPS Agreement and in the manner set out in its laws
and regulations.
3.
Each of the indication(s) for wines and spirits listed
in paragraph 1 of Annex 10 identifies a good as originatingin Japan where a given quality, reputation or othercharacteristic of the good is essentially attributable toits geographical origin and is protected as a geographicalindication within the meaning of paragraph 1 of Article 22of the TRIPS Agreement under the laws and regulations ofJapan. Peru agrees that each of the indication(s) listed inparagraph 1 of Annex 10 is a geographical indication within
the meaning of paragraph 1 of Article 22 of the TRIPS
Agreement and as such is qualified for protection as ageographical indication in Peru subject to provisions in
Section 3 of Part II of the TRIPS Agreement and to Peru’s
domestic laws and regulations.
4.
Each of the indication(s) for wines and spirits listed
in paragraph 2 of Annex 10 identifies a good as originatingin Peru where a given quality, reputation or othercharacteristic of the good is essentially attributable toits geographical origin and is protected as a geographicalindication within the meaning of paragraph 1 of Article 22of the TRIPS Agreement under the laws and regulations of
Peru. Japan agrees that each of the indication(s) listed inparagraph 2 of Annex 10 is a geographical indication within
the meaning of paragraph 1 of Article 22 of the TRIPS
Agreement and as such is qualified for protection as ageographical indication in Japan subject to provisions in
Section 3 of Part II of the TRIPS Agreement and to Japan’s
domestic laws and regulations.

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5.
Subject to consultations and by mutual consent, theParties may modify Annex 10 as to geographical indicationsof the Parties to be protected under this Article. Suchmodifications shall be confirmed by an exchange of
diplomatic notes.
Article 178
Copyright and Related Rights
The Parties reaffirm their existing rights andobligations under the Berne Convention for the Protectionof Literary and Artistic Works; the Rome Convention for theProtection of Performers, Producers of Phonograms andBroadcasting Organizations; the WIPO Copyright Treaty; andthe WIPO Performances and Phonograms Treaty.
Article 179
Protection of Undisclosed Information
Each Party shall ensure in its laws and regulations
effective protection of undisclosed information inaccordance with Article 39 of the TRIPS Agreement.
Article 180
Unfair Competition
Each Party shall provide for effective protection
against acts of unfair competition in accordance with
Article 10bis of the Paris Convention.
Article 181
Enforcement – General
1.
The Parties shall ensure that the provisions for theenforcement of intellectual property rights in theirdomestic laws and regulations are consistent with the TRIPS
Agreement, in particular Articles 41 through 61.
2.
Each Party shall facilitate development of specialized
expertise of competent authorities concerned with
enforcement of intellectual property rights, in order toensure effective enforcement of intellectual property
rights.

- 145 -

3.
Each Party shall endeavor to promote collection andanalysis of statistical data and other relevant information
concerning infringement of intellectual property rights,
especially trade in goods infringing intellectual property
rights. Each Party shall further endeavor to promotecollection of information on best practices to prevent andcombat intellectual property right infringement.
4.
Each Party shall endeavor to enhance coordination
among, and joint actions by, competent authorities
concerned with enforcement of intellectual property rights.
Article 182
Enforcement – Border Measures
1.
Each Party shall provide for procedures concerning thesuspension at the border by its customs authority, uponrequest of the right holder or ex officio, of the releaseof counterfeit trademark or pirated copyright goods which
are destined for importation into or exportation from that
Party.
2.
In the case of the suspension pursuant to paragraph 1
with respect to importation into and exportation from a
Party, the competent authorities of the Party suspending
the release of the goods shall notify the right holder ofthe names and addresses of the consignor or consignee, andthe importer or exporter, as applicable, of the goods inquestion.
Article 183
Enforcement – Civil Remedies
Each Party shall ensure that its judicial authorities
have the authority to order the infringer to pay the rightholder damages adequate to compensate for the injury theright holder has suffered because of an infringement ofthat person’s intellectual property right by an infringer
who knowingly, or with reasonable grounds to know, engaged
in infringing activity.

- 146 -

Article 184
Enforcement – Criminal Remedies
Each Party shall provide for criminal procedures andpenalties to be applied at least in cases of willful
trademark counterfeiting or copyright piracy on acommercial scale. Remedies available shall include
imprisonment and/or monetary fines sufficient to provide adeterrent, consistently with the level of penalties applied
for crimes of a corresponding gravity.
Article 185
Internet Service Providers
1.
Each Party shall establish a legal framework for thelimitation of liabilities of internet service providers(hereinafter referred to in this Article as “ISPs”) for the
purposes of encouraging ISPs to delete from their servers
materials infringing copyright and related rights.
2.
Each Party shall establish procedures to enable rightholders whose copyright and related rights have been
infringed to expeditiously obtain from ISPs the information
identifying the suspected infringer, where there arelegitimate reasons for such right holders to obtain suchinformation.
Article 186
Cooperation
The Parties, recognizing the growing importance ofprotection of intellectual property in further promoting
trade and investment between them, in accordance with theirrespective laws and regulations and subject to theiravailable resources, shall cooperate in the field ofintellectual property.
Article 187
Sub-Committee on Intellectual Property Rights
1.
For the purposes of the effective implementation andoperation of this Chapter, the Parties hereby establish a
Sub-Committee on Intellectual Property Rights (hereinafterreferred to in this Article as “the Sub-Committee”).

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2.

The functions of the Sub-Committee shall be:(a)reviewing and monitoring the implementation andoperation of this Chapter;(b)

discussing any issues related to intellectual
property with a view to enhancing protection of
intellectual property and enforcement ofintellectual property rights under the provisionsof this Chapter and to promoting efficient andtransparent administration of intellectual
property system;(c)discussing, with a view to promoting, cooperation
activities formulated on a mutually agreed basis
which are relevant to the provisions of this
Chapter; and(d)reporting the findings and the outcome of
discussions of the Sub-Committee to theCommission.

3.
The Sub-Committee shall be composed of government
officials of the Parties.
Article 188
Other Considerations
1.
The protection and enforcement of intellectual
property rights should contribute to the promotion oftechnological innovation and to the transfer anddissemination of technology, to the mutual advantage of
producers and users of technological knowledge and in amanner conducive to social and economic welfare, and to abalance of rights and obligations.
2.
This Chapter should be interpreted and implemented ina manner supportive of the Parties’ rights to take measures
to protect public health in accordance with the TRIPS
Agreement and the decisions by the Ministerial Conferenceor the General Council of the WTO, related to the TRIPS
Agreement and public health.

- 148 -

3.
No provision of this Chapter will prevent a Party fromadopting appropriate measures, provided that they are
consistent with the provisions of this Agreement and anyother international agreement to which both Parties are
parties, to prevent the abuse of the intellectual property
rights referred to in this Chapter by right holders or the
resort to practices which unreasonably restrain trade or
adversely affect the international transfer of technology.

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Chapter 12Competition
Article 189
Anticompetitive Activities
1.
Each Party shall, in accordance with its laws andregulations, take measures which it considers appropriate
against anticompetitive activities, in order to facilitate
trade and investment flows between the Parties through theefficient functioning of its markets.
2.
For the purposes of this Chapter, the term
“anticompetitive activities” means any conduct ortransaction that may be subject to penalties or relief
under the competition laws and regulations of therespective Parties.
Article 190
Cooperation on Controlling Anticompetitive Activities
1.
The Parties shall, in accordance with their respective
laws and regulations, cooperate in the field of controlling
anticompetitive activities, subject to their respective
available resources.
2.
The details and procedures concerning theimplementation of cooperation under this Article shall be
specified in the Implementing Agreement.
Article 191
Non-Discrimination
Each Party shall apply its competition laws andregulations in a manner which does not discriminate between
persons in like circumstances on the basis of theirnationality.

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Article 192
Procedural Fairness
Each Party shall implement administrative and judicial
procedures in a fair manner to control anticompetitive
activities, pursuant to its relevant laws and regulations.
Article 193
Transparency
Each Party shall promote transparency of theimplementation of its competition laws and regulations andits competition policy.
Article 194
Non-Application of Paragraph 1 of Article 7
Paragraph 1 of Article 7 shall not apply to this
Chapter.

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Chapter 13
Improvement of the Business Environment
Article 195
Basic Principles
Each Party shall, in accordance with its laws andregulations，take appropriate measures to further improvethe business environment for the persons of the other Party
conducting their business activities in the former Party.
Article 196
Sub-Committee on Improvement of the Business Environment1.
For the purposes of the effective implementation andoperation of this Chapter, the Parties hereby establish a
Sub-Committee on Improvement of the Business Environment(hereinafter referred to in this Chapter as “the SubCommittee”).
2.

The functions of the Sub-Committee shall be:(a)reviewing findings reported by a Liaison Officeon Improvement of the Business Environment(hereinafter referred to in this Chapter as “theLiaison Office”) to be designated by each Party
under Article 197;(b)

addressing, and seeking ways to promptly resolve,
issues related to the business environment on its
own initiative or based on the findings reportedby the Liaison Office;(c)reporting its findings and decisions, including
those on measures that should be taken by theParties, to the Parties;(d)reviewing, where appropriate, the measures takenby the Parties in relation to such decisions
referred to in subparagraph (c);(e)

making available to the public, in an appropriatemanner, the decisions referred to in subparagraph(c) and the results of the review referred to in
subparagraph (d);- 152 -

(f)reporting promptly the findings and decisions
referred to in subparagraph (c) to theCommission;(g)

cooperating, in an appropriate manner, with other
Sub-Committees established under this Agreement,with a view to avoiding unnecessary duplicationof works. The forms of such cooperation may
include:(i)informing the results of its consideration
to such other Sub-Committees;(ii)seeking opinions from such other SubCommittees;(iii)

inviting to the Sub-Committee the members ofsuch other Sub-Committees; and(iv)

where appropriate, transferring the relevant
issues to such other Sub-Committees; and(h)other functions assigned by the Commission.

3.
The Sub-Committee shall be composed of government
officials of the Parties. The Sub-Committee may invite
representatives of relevant entities other than the
Governments of the Parties with the necessary expertise
relevant to the issues to be addressed.
4.
The Sub-Committee shall hold meetings at such times
and venues or by means, as may be agreed by the Parties.
Article 197
Liaison Office1.
Each Party shall designate and maintain the Liaison
Office in the Party.
2.
The functions of the Liaison Office in each Party
shall be:- 153 -

(a)receiving complaints, inquiries and/or requests
for consultations from the persons of the otherParty with regard to the laws, regulations andother measures of that Party which may adversely
affect the business activities of such persons ofthat other Party;(b)transmitting the complaints, inquiries and/or
requests for consultations referred to in
subparagraph (a) to relevant authorities of that
Party;(c)transmitting responses from the relevant
authorities of that Party to the persons that
submitted the complaints, made inquiries and/or
made requests for consultations;(d)providing necessary information and advice to thepersons that submitted the complaints, madeinquiries and/or made requests for consultations,in collaboration with relevant authorities ofthat Party;(e)when necessary, submit to the Sub-Committee therelevant information regarding complaints,
inquiries and/or requests for consultations fromthe persons of that Party with regard to thelaws, regulations and other measures of the otherParty which may adversely affect the businessactivities of such persons; and(f)reporting its findings, with regard to theexercise of its functions referred to in
subparagraphs (a) through (e), to relevant SubCommittees and/or the other consulting fora
referred to in Article 198.

3.
The Liaison Office in each Party shall endeavor to
respond within a reasonable period of time to the persons
that submitted complaints, made inquiries and/or maderequests for consultations.
4.
Communications between the Liaison Office in a Party
and the persons of the other Party referred to in paragraph
2 may be conducted through an authority or an organization
designated as a contact point by the Government of that
other Party.

- 154 -

5.
For the purposes of subparagraph 2(e), the contact
point of a Party may also provide relevant information toits own Liaison Office.
6.
Paragraphs 2 through 5 shall not be construed as toprevent or restrict any contacts made by the persons of a
Party directly to relevant authorities of the other Partyor to its own Liaison Office.
7.

The Liaison Office shall be:(a)for Japan, the Ministry of Foreign Affairs, or
its successor; and(b)for Peru, the Ministry of Foreign Trade andTourism, or its successor.
Article 198
Consulting Fora

Nothing in this Chapter shall be construed to impede
the use of other consulting fora between the Parties forthe improvement of the business environment in the Parties.
Article 199
Implementation of the Decisions of the Sub-Committee
1.
In implementing Article 195, the decisions of the SubCommittee referred to in Article 196 shall be respected.
2.
The Parties may cooperate to facilitate theimplementation of the decisions of the Sub-Committee.

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Chapter 14
Cooperation
Article 200
Basic Principles
The Parties shall, in accordance with their laws andregulations, promote cooperation under this Agreement for
their mutual benefit, in order to liberalize and facilitate
trade and investment between the Parties and to promote thewell-being of the peoples of the Parties. For this purpose,
the Parties shall cooperate between the Governments of theParties and, where necessary and appropriate, encourage andfacilitate cooperation between parties, one or both of whomare entities other than the Governments of the Parties, inthe following fields:(a)trade and investment promotion;(b)

industry;(c)fisheries;(d)science and technology and environment;(e)

information and communications technology;(f)tourism;(g)

agriculture;(h)transport; and(i)other fields to be mutually agreed by theParties.
Article 201
Areas and Forms of Cooperation

The areas and forms of cooperation under this Chapter
shall be set forth in the Implementing Agreement.

- 156 -

Article 202
Implementation
The implementation of cooperation under this Chapter
shall be subject to the mutual agreement of the Parties as
to how to bear the costs of cooperation, as well as to theavailability of appropriated funds and the applicable laws
and regulations of each Party.
Article 203
Sub-Committee on Cooperation
1.
For the purposes of the effective implementation andoperation of this Chapter, the Parties hereby establish a
Sub-Committee on Cooperation (hereinafter referred to inthis Article as “the Sub-Committee”).
2.

The functions of the Sub-Committee shall be:(a)exchanging information on cooperation;(b)reviewing and monitoring the implementation andoperation of this Chapter;(c)discussing any issues related to this Chapter;(d)reporting the findings and the outcome of
discussions of the Sub-Committee regarding issues
relating to the implementation of this Chapter,
including the measures to be taken by theParties, to the Commission;(e)making recommendations, if necessary, of thecooperation activities under this Chapter to theCommission;(f)identifying ways for further cooperation between
the Parties; and(g)other functions assigned by the Commission.

- 157 -

3.
The Sub-Committee shall respect existing consultation
mechanisms between the Parties for Official Development
Assistance and other existing cooperation schemes and, as
appropriate, share information with such mechanisms andschemes to ensure effective and efficient implementation ofcooperative activities and projects.
4.
The Sub-Committee shall be composed of government
officials of the Parties. The Sub-Committee may invite
representatives of relevant entities other than the
Governments of the Parties with the necessary expertise
relevant to the issues to be discussed.
5.
The Sub-Committee shall hold meetings at such times
and venues or by means, as may be agreed by the Parties.
6.
The Sub-Committee shall establish its rules andprocedures.

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Chapter 15
Dispute Settlement
Article 204
Scope of Application
1.
Unless otherwise provided for in this Agreement, thedispute settlement procedure of this Chapter shall apply
with respect to the avoidance and the settlement ofdisputes between the Parties regarding the interpretation
or application of this Agreement. Any time period, otherrules and procedures for arbitral tribunals provided for inthis Chapter may be modified by mutual consent of theParties.
2.
Notwithstanding paragraph 1, this Chapter shall not
apply to Chapters 5, 6, 12, 13 and 14.
Article 205
Cooperation
The Parties shall at all times endeavor to agree on
the interpretation or application of this Agreement, andshall make every attempt through cooperation or other means
provided for in this Agreement, to arrive at a prompt andmutually satisfactory resolution of any matter concerning
the interpretation or application of this Agreement.
Article 206
Good Offices, Conciliation, or Mediation
1.
Good offices, conciliation, or mediation may berequested at any time by either Party. They may begin at
any time by agreement of the Parties, and end at any timeupon the request of either Party.
2.
Until the award of the arbitral tribunal is issued, if
the Parties agree, good offices, conciliation, or mediation
may continue while procedures of the arbitral tribunal
provided for in this Chapter are in progress.

- 159 -

3.
Proceedings involving good offices, conciliation, or
mediation and positions taken by the Parties during theseproceedings, shall be confidential, and without prejudice
to the rights of either Party in any further proceedings.
Article 207
Choice of Forum
1.
Where a dispute arises regarding any matter covered
under this Agreement and another international agreement towhich both Parties are parties, including the WTO
Agreement, the Party requesting consultations (hereinafterreferred to in this Chapter as “the complaining Party”) may
select the forum in which to settle the dispute.
2.
Unless otherwise agreed by the Parties, once thecomplaining Party has requested the establishment of anarbitral tribunal under an agreement referred to inparagraph 1 with respect to a particular dispute, thatprocedure selected shall be used to the exclusion of any
other procedure for that particular dispute.
Article 208
Consultations
1.
Either Party may request in writing consultations to
the other Party with respect to any matter regarding theinterpretation or application of this Agreement referred toin Article 204.
2.
The complaining Party shall deliver the request to theother Party, setting out the reasons for the request,
including identification of the measure at issue and an
indication of the legal and factual basis for thecomplaint.
3.
The Party to which the request for consultations ismade (hereinafter referred to in this Chapter as “the Party
complained against”) shall respond in writing within 10
days following the date of receipt of such request.
4.
The Parties shall start holding consultations in goodfaith within:- 160 -

(a)15 days after the date of receipt of the request
for consultations in cases of urgency; or
Note:

(b)

Cases of urgency include those which
concern goods or services that lose their
quality or current condition in a shortperiod of time; they include perishable
goods or such services which lose theirtrade value after a determined date.

30 days after the date of receipt of the request
for consultations for all other matters.

5.
The Party complained against shall endeavor to makeavailable pertinent government agencies or other regulatory
bodies which have expertise in the matter subject toconsultations.
6.
Consultations under this Article shall be confidential
and without prejudice to the right of either Party in any
further proceedings. During consultations each Party shallprovide sufficient information to enable a full examinationof the matter at issue including how it might affect theoperation and application of this Agreement and treat any
confidential information exchanged on the same basis as theParty providing such information.
7.
Consultations may be held in person or by any
technological means available to the Parties. Unlessotherwise agreed by the Parties; if in person,
consultations shall be held alternatively in each Party.
Article 209
Establishment of Arbitral Tribunals
1.
The complaining Party may request in writing theestablishment of an arbitral tribunal to the Party
complained against to consider the matter:(a)if the Party complained against does not respondwithin 10 days, or does not enter into
consultations within 30 days after the date ofreceipt of the request for such consultations; or- 161 -

(b)if the Parties fail to resolve the matter throughthe consultations under Article 208 within 50
days or within 30 days in cases of urgency, after
the date of receipt of the request for suchconsultations,provided that the complaining Party considers that any
benefit accruing to it directly or indirectly under thisAgreement is being nullified or impaired as a result of the
failure of the Party complained against to carry out its
obligations under this Agreement, or as a result of theapplication by the Party complained against of measures
which are in conflict with its obligations under thisAgreement.
Note: For greater certainty, no request for theestablishment of an arbitral tribunal based only
on nullification or impairment of benefits
without allegation of non-compliance with the
obligations of this Agreement shall be accepted.
2.
Any request to establish an arbitral tribunal pursuant
to this Article shall identify the reason of the request,
the measure or other issue referred to and the legal andfactual basis of the complaint, including the provisions of
this Agreement alleged to have been breached and any otherrelevant provisions of the applicable international law.
3.
Unless otherwise agreed by the Parties, the arbitral
tribunal shall be selected and carry out its functions in amanner consistent with the provisions of this Chapter.
Article 210
Composition of the Arbitral Tribunal
1.
The Parties shall apply the following procedures inestablishing an arbitral tribunal:(a)the arbitral tribunal shall comprise threemembers;- 162 -

(b)within 30 days after the date of receipt of therequest for the establishment of an arbitral
tribunal, each Party shall appoint one arbitrator
who may be its national, propose up to fourcandidates to serve as the third arbitrator who
shall be the chair of the arbitral tribunal
pursuant to subparagraph (e), and notify theother Party in writing of the appointment and its
proposed candidates;(c)the Parties shall endeavor to agree on andappoint the third arbitrator who shall be thechair within 45 days after the date of receipt of
the request for the establishment of an arbitral
tribunal, from among the candidates proposed
pursuant to subparagraph (b);(d)

if a Party has not appointed the one arbitrator
pursuant to subparagraph (b), or if the Parties
fail to agree on the third arbitrator pursuant to
subparagraph (c), the arbitrator or arbitrators
not yet appointed shall be chosen within sevendays by lot from the candidates proposed pursuant
to subparagraph (b);(e)

the chair of the arbitral tribunal shall not be anational of either Party, nor have his or her
usual place of residence in either Party, nor be
or have been employed by either Party, nor havedealt with the subject raised on the dispute inany capacity; and(f)the date of the establishment of an arbitral
tribunal shall be the date on which the chair is
appointed.

2.
If an arbitrator appointed under this Article resigns
or otherwise becomes unable to act, a replacement
arbitrator shall be appointed in the same manner asprescribed for the appointment of the original arbitrator.
The replacement arbitrator shall have all the powers andduties of the original arbitrator. The work of the arbitral
tribunal shall be suspended until the replacement
arbitrator is appointed.

- 163 -

Article 211
Qualifications of Arbitrators
Arbitrators shall:(a)have expertise or experience in law,international trade, other matters covered bythis Agreement, or in the resolution of disputes
arising under international trade agreements;(b)

be chosen strictly on the basis of objectivity,
impartiality, reliability and sound judgment; and(c)be independent of and not be affiliated with ortake instructions from either Party.
Article 212
Functions of Arbitral Tribunals

1.

The functions of the arbitral tribunal shall be:(a)

to make an objective assessment of the matter
before it, including that of the facts of thecase and the applicability of and conformity withthis Agreement, and make the necessary findings
and rulings for the resolution of the dispute;
and

(b)

to consult regularly with the Parties offering
them equal opportunities for such consultations
and provide adequate opportunities for thedevelopment of a mutually satisfactory
resolution.

2.
The arbitral tribunal may adopt additional rules andprocedures consistent with the provisions of this Chapter.
Article 213
Proceedings of the Arbitral Tribunal
1.
The Parties have the right to, at least, one hearing
before the arbitral tribunal as well as the opportunity toprovide initial and rebuttal written submissions. The
Parties shall be given the opportunity to attend any of thepresentations, statements or rebuttals in the proceedings.

- 164 -

2.
The meetings of the arbitral tribunal, the hearing
before it, the deliberations, as well as all the documents
submitted to it, shall be kept confidential.
3.
Notwithstanding paragraph 2, either Party may makepublic statements as to its views regarding the dispute,but shall treat as confidential, information and written
submissions submitted by the other Party to the arbitral
tribunal which that other Party has designated asconfidential. Where a Party has provided information or
written submissions designated to be confidential, theother Party may request a non-confidential summary of theinformation or written submissions which may be disclosed
publicly. The Party to which such a request is made may
agree to the request and submit such summary, or refuse therequest without needing to ascribe any reasons or
justification.
4.
Unless otherwise agreed by the Parties within 10 days
from the establishment of the arbitral tribunal, the termsof reference shall be:“To examine, in light of the relevant provisions of
this Agreement, the matter referred to it in thearbitral tribunal request and to issue the award.”
5.
Each Party shall bear the costs of the arbitrator
appointed by it and its representation in the proceedingsof the arbitral tribunal. The other costs of the arbitral
tribunal shall be borne by the Parties in equal shares,
unless otherwise agreed by the Parties.
6.
The venue for the proceedings of the arbitral tribunal
shall be decided by mutual consent of the Parties, failingwhich it shall alternate between the Parties.
7.
The language of the proceedings and the documents
submitted to and produced by the tribunal, including theaward, shall be English. Accordingly, the Parties shallpresent written submissions as well as oral arguments in
English.
8.
Any information or written submissions presented by a
Party to the arbitral tribunal, including responses toquestions raised by the arbitral tribunal, shall be madeavailable to the other Party.

- 165 -

9.
The award of the arbitral tribunal shall be drafted
without the presence of the Parties, and in the light of
the information provided and the statements made.
10. The arbitral tribunal shall attempt to make its
decisions, including its award, by consensus but may also
make its decisions, including its award, by majority vote.
Article 214
Information in the Procedure
1.
On request of either Party or on its own initiative,
the arbitral tribunal, to the extent that it deems
appropriate, may seek information from any relevant source
and may consult experts to obtain their opinion on certain
aspects of the matter concerned.
2.
The arbitral tribunal may seek, from the Parties, such
relevant information as it considers necessary andappropriate. The Parties shall respond to any request by
the arbitral tribunal for such information.
3.
Before the arbitral tribunal seeks information or
consults experts, it shall establish appropriate proceduresin consultation with the Parties. The arbitral tribunal
shall provide the Parties with:(a)prior notification of its intention to seek
information or consult experts pursuant toparagraph 1, and an adequate time period to makeobservations; and(b)a copy of any information or opinion of experts
obtained pursuant to paragraph 1, and a period oftime to submit comments.

4.
When the arbitral tribunal takes into consideration
any information or opinion of experts sought pursuant toparagraph 1 for the preparation of its award, it may also
take into account any comments or observations submitted by
the Parties with respect to such information or opinion ofexperts.

- 166 -

Article 215
Consolidation of Proceedings
The arbitral tribunal may consolidate two or more
proceedings regarding the same measure or the same matterwith the consent of the Parties.
Article 216
Award of the Arbitral Tribunal
1.
The arbitral tribunal shall, within 90 days, or within
60 days in cases of urgency, after the date of its
establishment, submit to the Parties its draft award,
including the descriptive part and its findings andconclusions, for the purposes of enabling the Parties toreview it. When the arbitral tribunal considers that it
cannot submit its draft award within the aforementioned 90
or 60 days period, it may extend that period with theconsent of the Parties. A Party may submit comments inwriting to the arbitral tribunal on the draft award within
15 days after the date of submission of the draft award.
2.
The arbitral tribunal shall issue its award, within 30
days after the date of submission of the draft award.
3.

The award shall contain:(a)findings on the facts of the case and theapplicability of and conformity with thisAgreement of the measure at issue, together withthe reasons therefor;(b)referential findings about the level of adverse
trade effects caused to a Party by the otherParty’s failure to conform with the obligationsof the Agreement; and(c)at the request of either Party, suggested
implementation options for the Parties toconsider.

4.
The arbitral tribunal shall base its awards on
relevant provisions of this Agreement, applicable rules ofinternational law, the submissions and arguments of theParties, and any information provided pursuant to Article214.

- 167 -

5.
The arbitral tribunal may not, in its award, add to or
diminish the rights and obligations of the Parties provided
for in this Agreement.
6.
The award, including its findings, of the arbitral
tribunal shall be final and binding for the Parties.
Article 217
Suspension and Termination of Procedure
1.
Where the Parties agree, the procedure of the arbitral
tribunal may be suspended at any time for a period notexceeding 12 months. In the event of such a suspension, thetime-frames set out in paragraph 4 of Article 213,
paragraphs 1 and 2 of Article 216 and paragraph 5 of
Article 219 shall be extended by the amount of time that it
was suspended for. The procedure of the arbitral tribunal
shall be resumed at any time upon the request of either
Party.
2.
If the procedure of the arbitral tribunal has beensuspended for more than 12 months, the authority forestablishing of the arbitral tribunal shall lapse, unlessthe Parties agree otherwise. If the authority forestablishing the arbitral tribunal lapses and the Parties
have not settled the dispute, nothing in this Chapter shallprevent a Party from requesting a new proceeding regarding
the same matter.
3.
The Parties may agree to terminate the proceedings ofthe arbitral tribunal at any time by a joint notification
to the chair of the arbitral tribunal before the issuanceof the award to the Parties.
Article 218
Implementation of the Award
1.
The Party complained against shall promptly comply
with the award of the arbitral tribunal issued pursuant to
Article 216.
2.
The Party complained against shall, within 30 days
after the date of issuance of the award, notify thecomplaining Party of the period which it assesses to bereasonable and necessary in order to implement the award.

- 168 -

3.
If the complaining Party considers the period of time
notified pursuant to paragraph 2 to be unacceptable, theParties shall hold consultations to decide on a mutuallyagreed period of time in order to implement the award.
4.
If the Parties are not able to agree on a period oftime pursuant to paragraph 3 within 45 days after the dateof the issuance of the award, the complaining Party may
refer the matter to an arbitral tribunal, which shalldetermine a reasonable period of time to implement theaward. In such arbitration, a guideline for the arbitral
tribunal should be that the reasonable period of time to
implement the award should not exceed 15 months from thedate of issuance of the award. However, that time may be
shorter or longer, depending upon the particular
circumstances.
5.
If the Party complained against considers it
impracticable to comply with the award within theimplementation period as determined pursuant to paragraphs
2 through 4, the Party complained against shall, no later
than the expiry of that implementation period, enter into
consultations with the complaining Party, with a view todeveloping mutually satisfactory compensation or any
alternative arrangement.
6.
Where there is disagreement between the Parties as towhether the Party complained against has complied with theaward of the arbitral tribunal referred to in Article 216
within the implementation period as determined pursuant toparagraphs 2 through 4, either Party may refer the matterto an arbitral tribunal.
Article 219
Non-Implementation – Suspension of Benefits
1.
If no satisfactory compensation or any alternative
arrangement has been agreed pursuant to paragraph 5 of
Article 218 within 20 days after the date of expiry of theimplementation period as determined pursuant to paragraphs
2 through 4 of Article 218, the complaining Party may
notify the Party complained against that it intends tosuspend the application to the Party complained against ofconcessions or other obligations under this Agreement.

- 169 -

2.
If the arbitral tribunal to which the matter isreferred pursuant to paragraph 6 of Article 218 confirmsthat the Party complained against has failed to comply withthe award within the implementation period as determined
pursuant to paragraphs 2 through 4 of Article 218, thecomplaining Party may, within 30 days after the date ofsuch confirmation by the arbitral tribunal, notify the
Party complained against that it intends to suspend theapplication to the Party complained against of concessions
or other obligations under this Agreement.
3.
The suspension of the application of concessions orother obligations under paragraph 1 or 2 may only be
implemented at least 30 days after the date of thenotification in accordance with the applicable provisionsof this Article. Such suspension shall:(a)

not be effected if, in respect of the dispute towhich the suspension relates, consultations orproceedings before the arbitral tribunal are in
progress;(b)

be temporary, and be discontinued when theParties reach a mutually satisfactory resolution
or where compliance with the award is effected;(c)be restricted to the same level of nullification
or impairment that is attributable to the failure
to comply with the award; and(d)be restricted to the same sector or sectors towhich the nullification or impairment relates,
unless it is not practicable or effective tosuspend the application of concessions or
obligations in such sector or sectors.

- 170 -

4.
If the Party complained against considers that therequirements for the suspension of the application to it ofconcessions or other obligations under this Agreement by
the complaining Party set out in paragraph 1, 2 or 3 havenot been met, it may request consultations with thecomplaining Party. The complaining Party shall enter into
consultations within 10 days after the date of receipt of
the request. If the Parties fail to resolve the matterwithin 30 days after the date of receipt of the request for
consultations pursuant to this paragraph, the Party
complained against may refer the matter to an arbitral
tribunal, which then shall determine whether suchrequirements have been met.
5.
Notwithstanding subparagraph 1(e) of Article 210, thearbitral tribunal that is established for the purposes of
Article 218 and this Article shall, wherever possible,
have, as its arbitrators, the arbitrators of the original
arbitral tribunal. If this is not possible, the arbitrators
to the arbitral tribunal that is established for the
purposes of Article 218 and this Article shall be appointed
pursuant to paragraph 1 of Article 210. Unless the Parties
agree on a different period, the arbitral tribunal
established under Article 218 and this Article shall issue
its award within 60 days after the date when the matter isreferred to it. Such award shall be binding on the Parties.

- 171 -

Chapter 16
Final Provisions
Article 220
Annexes, Appendices and Notes
The Annexes, Appendices and Notes to this Agreement
constitute an integral part thereof.
Article 221
Table of Contents and Headings
The table of contents and the headings of the
Chapters, Sections and Articles of this Agreement are
inserted for convenience of reference only and shall notaffect the interpretation of this Agreement.
Article 222
Entry into ForceThis Agreement shall enter into force on the first dayof the second month following the month in which theGovernments of the Parties exchange diplomatic notes
informing each other that their respective legal procedures
necessary for entry into force of this Agreement have been
completed, unless the Parties agree otherwise. It shallremain in force unless terminated pursuant to Article 224.
Article 223
Amendments
1.
The Parties may agree to any amendment to thisAgreement. Such amendment shall be approved by the Parties
in accordance with their respective legal procedures, andshall enter into force on the date to be agreed by theParties. Any amendment shall constitute an integral part ofthis Agreement.
2.
Notwithstanding paragraph 1, amendments may be agreed
by the exchange of diplomatic notes between the Governmentsof the Parties, regarding only:- 172 -

(a)Annex 1, provided that the amendments are made inaccordance with the amendment of the Harmonized
System, and include no change on the rates ofcustoms duty to be applied by a Party to theoriginating goods of the other Party inaccordance with Annex 1;(b)

Annex 3;(c)Annex 4; or(d)Annex 10, in accordance with paragraph 5 of
Article 177.
Article 224
Termination

Unless the Parties agree otherwise, either Party may
terminate this Agreement by giving a written notification
to the other Party and the termination shall be effective
one year after the date of receipt by the other Party.
Article 225
Authentic Texts
1.
The texts of this Agreement in the Japanese, Spanishand English languages shall be equally authentic. In theevent of any divergence among the texts, the English text
shall prevail.
2.

Notwithstanding the first sentence of paragraph 1:
(a)

(b)

(i)

Part 2 of Annex 1 is in the Japanese andEnglish languages, such texts being equallyauthentic; and(ii)Part 3 of Annex 1 is in the Spanish andEnglish languages, such texts being equallyauthentic;

Annex 4 is only in the English language;- 173 -

(c)

(d)

(e)

(i)

Part 1 of Annex 5 and Part 1 of Annex 6 arein the Japanese and English languages, suchtexts being equally authentic; and(ii)Part 2 of Annex 5 and Part 2 of Annex 6 arein the Spanish and English languages, suchtexts being equally authentic;(i)Part 1 of Annex 8 is in the Japanese andEnglish languages, such texts being equallyauthentic; and(ii)Part 2 of Annex 8 is in the Spanish andEnglish languages, such texts being equallyauthentic; and(i)Part 1 of Annex 9 is in the Japanese andEnglish languages, such texts being equallyauthentic; and(ii)Part 2 of Annex 9 is in the Spanish andEnglish languages, such texts being equallyauthentic.

IN WITNESS WHEREOF, the undersigned, being duly
authorized by their respective Governments, have signed
this Agreement.
DONE at Tokyo on this thirty-first day of May in theyear 2011 in two originals in the Japanese, Spanish andEnglish languages.

For Japan:

For the Republic of Peru:

松本剛明

Ferreyros- 174 -