TRANS-PACIFICSTRATEGIC ECONOMIC PARTNERSHIP

AGREEMENTPREAMBLE
The Governments of Brunei Darussalam, the Republic of Chile, New Zealand andthe Republic of Singapore, (hereinafter referred to collectively as the “Parties” orindividually as a “Party”, unless the context otherwise requires), resolve to:
STRENGTHEN the special links of friendship and cooperation among them;
ENLARGE the framework of relations among the Parties through liberalisingtrade and investment and encouraging further and deeper cooperation tocreate a strategic partnership within the Asia - Pacific region;
CONTRIBUTE to the harmonious development and expansion of world tradeand provide a catalyst for broader cooperation at international forums;
CREATE an expanded and secure market for the goods and services in theirterritories;
AVOID distortions in their reciprocal trade;
ESTABLISH clear rules governing their trade;
ENSURE a predictable commercial framework for business planning andinvestment;
BUILD on their respective rights and obligations under the Marrakesh
Agreement establishing the World Trade Organization and other multilateraland bilateral agreements and arrangements;
AFFIRM their commitment to the Asia – Pacific Economic Cooperation(APEC) goals and principles;
REAFFIRM their commitment to the APEC Principles to Enhance Competition
and Regulatory Reform with a view to protecting and promoting thecompetitive process and the design of regulation that minimises distortions tocompetition;
BE MINDFUL that economic development, social development andenvironmental protection are interdependent and mutually reinforcing
components of sustainable development and that closer economic
partnership can play an important role in promoting sustainable development;
ENHANCE the competitiveness of their firms in global markets;
FOSTER creativity and innovation, and promote the protection intellectual
property rights to encourage trade in goods and services among the Parties;

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STRENGTHEN their strategic economic partnership to bring economic andsocial benefits, to create new opportunities for employment and to improve
the living standards of their peoples;
UPHOLD the rights of their governments to regulate in order to meet national
policy objectives;
PRESERVE their flexibility to safeguard the public welfare;
ENHANCE their cooperation on labour and environmental matters of mutualinterest;
PROMOTE common frameworks within the Asia – Pacific region, and affirm
their commitment to encourage the accession to this Agreement by othereconomies;
HAVE AGREED as follows:2

CHAPTER 1
INITIAL PROVISIONS

Article 1.1: Objectives
1.
This Agreement establishes a Trans-Pacific Strategic Economic Partnershipamong the Parties, based on common interest and on the deepening of therelationship in all areas of application.
2.
This Agreement covers in particular the commercial, economic, financial,scientific, technological and cooperation fields. It may be extended to other areas
to be agreed upon by the Parties in order to expand and enhance the benefits ofthis Agreement.
3.
The Parties seek to support the wider liberalisation process in APEC
consistent with its goals of free and open trade and investment.
4.
The trade objectives of this Agreement, as elaborated more specificallythrough its principles and rules, including national treatment, most-favoured- nation
treatment and transparency, are to:(a)encourage expansion and diversification of trade among each Party’s
territory;(b)eliminate barriers to trade in, and facilitate the cross-border movementof, goods and services among the territories of the Parties;(c)promote conditions of fair competition in the free trade area;(d)substantially increase investment opportunities among each Party’s
territory;(e)provide adequate and effective protection and enforcement ofintellectual property rights in each Party's territory; and(f)create an effective mechanism to prevent and resolve trade disputes.

Article 1.2: Establishment of the Free Trade Area
The Parties to this Agreement, consistent with Article XXIV of the General
Agreement on Tariffs and Trade 1994 and Article V of the General Agreement on
Trade in Services, which are part of the WTO Agreement, hereby establish a free
trade area.

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CHAPTER 2
GENERAL DEFINITIONSArticle 2.1: Definitions of General Application
For the purposes of this Agreement, unless otherwise specified:
Agreement means the Trans-Pacific Strategic Economic Partnership Agreement;
APEC means the Asia - Pacific Economic Cooperation;
Commission means the Trans-Pacific Strategic Economic Partnership
Commission established under Article 17.1 (Establishment of the Strategic
Economic Partnership Commission);
customs administration means the competent authority that is responsible under
the laws of a Party for the administration of customs laws, regulations and policies,
and(a)in relation to Brunei Darussalam means the Royal Customs andExcise Department;(b)in relation to Chile means the National Customs Service of Chile;(c)in relation to New Zealand means the New Zealand Customs
Service; and(d)in relation to Singapore means the Singapore Customs;

customs duty includes any duty or charges of any kind imposed in connection
with the importation of a good, and any surtaxes or surcharges imposed inconnection with such importation, but does not include:(a)charges equivalent to an internal tax imposed consistently with GATT1994, including excise duties and goods and services tax;(b)fees or other charges that(i)are limited in amount to the approximate cost of services rendered,
and

(ii)

do not represent a direct or indirect protection for domestic goods
or a taxation of imports for fiscal purposes; and

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(c)

any anti-dumping or countervailing duty applied consistently with theprovisions of Article VI of GATT 1994, the WTO Agreement on the
Implementation of Article VI of GATT 1994, and the WTO Agreement on
Subsidies and Countervailing Measures;

Customs Valuation Agreement means the Agreement on Implementation of
Article VII of the General Agreement on Tariffs and Trade 1994, which is part of the
WTO Agreement;days means calendar days;
enterprise means any corporation, company, association, partnership, trust, joint
venture, sole-proprietorship or other entity constituted or organised underapplicable law, regardless of whether or not the entity is organised for profit,
privately or otherwise owned, or organised with limited or unlimited liability;
enterprise of a Party means an enterprise constituted or organised under the lawof a Party;
existing means in effect on the date of entry into force of this Agreement for a
Party;GATS means the General Agreement on Trade in Services, which is part of the
WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, which ispart of the WTO Agreement;
goods of a Party means domestic products as these are understood in GATT1994 or such goods as the Parties may agree and includes originating goods of a
Party;
goods and products shall be understood to have the same meaning unless thecontext otherwise requires;
Harmonized System (HS) means the Harmonized Commodity Description and
Coding System administered by the World Customs Organisation, including its
General Rules of Interpretation, Section Notes and Chapter Notes, as adopted andimplemented by the Parties in their respective tariff laws;
heading means the first four digits in the tariff classification under the Harmonized
System;measure includes any law, regulation, procedure, requirement or practice;2-2

national means a natural person who has the nationality of a Party according toAnnex 2.A or a permanent resident of a Party;
originating means qualifying under the rules of origin set out in Chapter 4 (Rulesof Origin);person means a natural person or an enterprise;
person of a Party means a national or an enterprise of a Party;
producer means a person who grows, raises, mines, harvests, fishes, captures,
gathers, collects, breeds, extracts, hunts, manufactures, processes, assembles ordisassembles a good;
preferential tariff treatment means the customs duty rate applicable to an
originating good, pursuant to the Parties' respective Tariff Elimination Schedules
set out in Annex I;
Safeguards Agreement means the Agreement on Safeguards, which is part of the
WTO Agreement;
subheading means the first six digits in the tariff classification under the
Harmonised System;
territory means for a Party the territory of that Party as set out in Annex 2.A;
WTO means the World Trade Organisation;
WTO Agreement means the Marrakesh Agreement Establishing the World Trade
Organization, done on April 15, 1994.

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Annex 2.A
Country-Specific Definitions

For the purposes of this Agreement, unless otherwise specified:natural person who has the nationality of a Party means:(a)with respect to Brunei Darussalam, a subject of His Majesty the Sultan
and Yang Di-Pertuan in accordance with the Laws of Brunei;(b)with respect to Chile, a Chilean as defined in Article 10 of theConstitución Política de la República de Chile;(c)with respect to New Zealand, a citizen as defined in the Citizenship Act
1977, as amended from time to time, or any successor legislation; and(d)with respect to Singapore, any person who is a citizen within themeaning of its Constitution and domestic laws.

territory means:(a)with respect to Brunei Darussalam, the territory of Brunei Darussalam
and the maritime areas adjacent to the coast of Brunei Darussalam tothe extent to which Brunei Darussalam may exercise sovereign rights or
jurisdiction in accordance with international law and its legislation;(b)with respect to Chile, the land, maritime, and air space under its
sovereignty, and the exclusive economic zone and the continental shelf
within which it exercises sovereign rights and jurisdiction in accordancewith international law and its domestic law;(b)with respect to New Zealand, the territory of New Zealand and theexclusive economic zone, seabed and subsoil over which it exercises
sovereign rights with respect to natural resources in accordance withinternational law, but does not include Tokelau; and(c)with respect to Singapore, its land territory, internal waters and territorial
sea as well as and any maritime area situated beyond the territorial sea
which has been or might in future be designated under its domestic law,in accordance with international law, as an area within which Singapore
may exercise sovereign rights or jurisdiction with regard to the sea,seabed, the subsoil and the natural resources.

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CHAPTER 3
TRADE IN GOODS

Article 3.1: Definitions
For the purposes of this Chapter:
advertising films and recordings means recorded audio/visual (film, tape, ordisc), or audio (tape or disc) media designed to advertise or promote goods orservices by any company, firm or person, having an established business orresident in the territory of a Party, excluding such media for general public
exhibition;
agricultural goods means those goods referred to in Article 2 of the Agreement
on Agriculture, which is part of the WTO Agreement;commercial samples of negligible value means commerical samples having avalue, individually or in the aggregate as shipped, of not more than one US dollar,
or the equivalent amount in the currency of a Party, or so marked, torn, perforated
or otherwise treated that they are unsuitable for sale or for use except as comercial
samples;
consular transactions means requirements that goods of a Party intended forexport to the territory of the other Party must first be submitted to the supervision of
the consul of the importing Party in the territory of the exporting Party for the
purpose of obtaining consular invoices or consular visas for commercial invoices,
certificates of origin, manifests, shippers’ export declarations or any other customs
documentation required on or in connection with importation;
duty-free means free of customs duty;
export subsidies shall have the meaning assigned to that term in Article 1(e) of
the Agreement on Agriculture, which is part of the WTO Agreement, including any
amendment of that article;
goods admitted for sports purposes means articles and equipment for use in
sports contests, demonstrations or training in the territory of the Party into whose
territory such goods are imported;
goods intended for display or demonstration includes instruments, apparatus
and models designed for demonstrational purposes, unsuitable for other purposes,
and classified in Harmonized System Tariff heading 90.23;

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printed advertising materials means those goods classified in Chapter 49 of theHarmonized System, including brochures, pamphlets, leaflets, trade catalogues,
yearbooks published by trade associations, tourist promotional materials andposters, that are used to promote, publicise or advertise a good or serviced, areessentially intended to advertise a good or services, and are supplied free ofcharge.

Article 3.2: Scope
Except as otherwise provided, this Chapter applies to trade in all goods
between any of the Parties.

Article 3.3: National Treatment
Each Party shall accord national treatment to the goods of the other Parties
in accordance with Article III of GATT 1994. To this end, the provisions of Article III
of GATT 1994 are incorporated into and shall form part of this Agreement, mutatis
mutandis.

Article 3.4: Elimination of Customs Duties
1.
Except as otherwise provided in this Agreement, no Party may increase any
existing customs duty, or adopt any customs duty, on an originating good.
2.
Except as otherwise provided in this Agreement, and subject to a Party’s
Schedule as set out in Annex I, as at the date of entry into force of this Agreement
each Party shall eliminate all customs duties on originating goods of another Party.
3.
On the request of any Party, the Parties shall consult to consider
accelerating the elimination of customs duties set out in their Schedules. An
agreement between two or more of the Parties to accelerate the elimination of acustoms duty on a good shall supersede any duty rate or staging category
determined pursuant to their Schedules for such good when approved by eachParty in accordance with Article 17.2 (Functions of the Commission). Any suchacceleration shall be extended to all Parties.
Article 3.5: Goods Re-entered after Repair and Alteration
1.
The Parties may not apply a customs duty to a good, regardless of its origin,that re-enters its territory after that good has been temporarily exported from its
territory to the territory of another Party for repair or alteration, regardless ofwhether such repair or alteration could be performed in its own territory.

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2.
The Parties may not apply a customs duty to a good, regardless of its origin,admitted temporarily from the territory of another Party for repair or alteration.
3.
For the purposes of this Article, repair and alteration does not include anoperation or process that:(a)destroys a good's essential characteristics or creates a new orcommercially different good; or(b)transforms an unfinished good into a finished good.

Article 3.6: Duty-Free Entry of Commercial Samples of Negligible Value andPrinted Advertising MaterialWith the exception of liquor and tobacco products, the Parties shall grantcustoms duty-free entry to commercial samples of negligible value and to printed
advertising materials imported from the territory of another Party, regardless of
their origin, but may require that:(a)such samples be imported solely for the solicitation of orders for goods,
or services provided from the territory, of another Party or a non-Party;or(b)such advertising materials are imported in packets that each contain no
more than one copy of each material and that neither such materials nor
packets form part of a larger consignment.

Article 3.7: Temporary Admission of Goods
1.
With the exception of liquor and tobacco products each Party shall grantcustoms duty-free temporary admission for:(a)professional equipment, including equipment for the press or television,
software and broadcasting and cinematographic equipment, necessary
for carrying out the business activity, trade or profession of a businessperson;(b)

goods intended for display or demonstration;(c)commercial samples and advertising films and recordings; and(d)goods admitted for sports purposes, including racing or others similar
events, regardless of their origin.

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2.
Each Party shall, at the request of the person concerned and for reasonsdeemed valid by its customs authority, extend the time limit for temporary
admission beyond the period initially fixed, provided that the period of extension,having regard to the particular goods and circumstances of each case, isreasonable and the period of extension is no greater than the period initially fixed.
3.
No Party may condition the duty-free temporary admission of goods referred
to in Paragraph 1, other than to require that such goods:(a)be used solely by or under the personal supervision of a national orresident of another Party in the exercise of the business activity, trade,
profession, or sport of that person;(b)

not be sold or leased or disposed of or transferred while in its territory;(c)be accompanied by a security in an amount no greater than the charges
that would otherwise be owed on entry or final importation, releasable
on exportation of the good;(d)be capable of identification when imported and exported;(e)be exported on the departure of the person referenced in Subparagraph(a), or within such other period, related to the purpose of the temporary
admission, as the Party may establish;(f)

be admitted in no greater quantity than is reasonable for their intended
use; and(g)

be otherwise admissible into the Party’s territory under its laws.

4.
If any condition that a Party imposes under Paragraph 3 has not been
fulfilled, the Party may apply the customs duty and any other charge that would
normally be owed on the good plus any other charges or penalties provided forunder its domestic law.
5.
Each Party, through its customs authority, shall adopt procedures providing
for the expeditious release of goods admitted under this Article. To the extent
possible, such procedures shall provide that when such a good accompanies anational or resident of another Party who is seeking temporary entry, the good shallbe released simultaneously with the entry of that national or resident.

6.
Each Party shall permit a good temporarily admitted under this Article to beexported through a customs authorised point of departure other than that throughwhich it was admitted.

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7.

Subject to Chapter 12 (Trade in Services):(a)each Party shall allow a vehicle or container used in international trafficthat enters its territory from the territory of another Party to exit its
territory on any route that is reasonably related to the economic andprompt departure of such vehicle or container;(b)no Party may require any bond or impose any penalty or charge solely
by reason of any difference between the customs authorised point ofentry and the customs authorised point of departure of a vehicle orcontainer;(c)no Party may condition the release of any obligation, including any
bond, that it imposes in respect of the entry of a vehicle or container into
its territory on its exit through any particular customs authorised point of
departure; and(d)no Party may require that the vehicle or carrier bringing a container fromthe territory of another Party into its territory be the same vehicle or
carrier that takes such container back to the territory of that other Party.

Article 3.8: Non-Tariff Measures
1.
No Party shall adopt or maintain any non-tariff measures on the importationof any good of another Party or on the exportation of any good destined for the
territory of another Party except in accordance with its rights and obligations under
the WTO Agreement or in accordance with other provisions of this Agreement.
2.

Paragraph 1 shall not apply to the measures set out in Annex 3.A.

Article 3.9: Administrative Fees and Formalities
1.
The Parties agree that fees, charges, formalities and requirements imposedin connection with the importation and exportation of goods shall be consistent with
their obligations under GATT 1994.
2.
No Party may require consular transactions, including related fees andcharges, in connection with the importation of any good of the other Parties.
3.
Each Party shall make available through the Internet or a comparable
computer-based telecommunications network a current list of the fees and charges
it imposes in connection with importation or exportation.

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Article 3.10: Export Duties
No Party may adopt or maintain any duty, tax, or other charge on the exportof any good to the territory of the other Parties, unless such duty, tax, or charge isadopted or maintained on any such good when destined for domestic
consumption.1

Article 3.11: Agricultural Export Subsidies
1.
The Parties share the objective of the multilateral elimination of all forms ofexport subsidies for agricultural goods and shall cooperate in an effort to achieve
such an agreement and prevent their reintroduction in any form.
2.
Notwithstanding any other provisions of this Agreement, the Parties agree toeliminate, as of the date of entry into force of this Agreement, all forms of export
subsidy for agricultural goods destined for the other Parties, and to prevent thereintroduction of such subsidies in any form.

Article 3.12: Price Band System
1.
Chile may maintain its Price Band System as established in Article 12 of
Law 18.525 and its subsequent legal modifications or succeeding system, for the
products covered by that law.2
2
With respect to the products referred to in Paragraph 1, Chile shall give tothe other Parties a treatment not less favourable than the preferential tariff
treatment given to any third country, including countries with which Chile has
concluded or will conclude in the future an agreement notified under Article XXIV ofGATT 1994.

Article 3.13: Special Agricultural Safeguard Measures
1.
Chile may apply a special safeguard measure to a limited number of
specified sensitive agricultural goods listed in Annex 3.B.
2.
Chile shall endeavour to apply special safeguard measures in a manner thatis consistent with its commitments under this Agreement to liberalise and promote
the expansion of trade in these goods among the Parties.

1

For greater certainty, this Article shall not apply to fees, charges, formalities and requirements on
the exportation of goods imposed consistent with the provisions of Article VIII of GATT 1994.
2
The only products covered by the Price Band System are HS 1001.9000, 1101.0000, 1701.1100,
1701.1200, 1701.9100, 1701.9910, 1701.9920 and 1701.9990.

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3Chile may impose a special safeguard measure on a good only during theperiod, following the grace period specified in Chile’s Schedule as set out in Annex
I, in which tariffs are being eliminated. Chile may not impose a special safeguard
measure on a good after that good achieves duty-free status under thisAgreement.
4.
Notwithstanding Article 3.4, Chile may impose a special safeguard measurein the form of additional import duties as set out below on those goods listed in
Annex 3.B. The sum of any such additional duty and any import duties or othercharges applied pursuant to Article 3.4 shall not exceed the lesser of:(a)the prevailing most-favoured-nation applied rate; or(b)

the base rate.

5.
Chile may impose a special safeguard measure if the quantity of imports ofthe good during any semester exceeds the quantity trigger level, corresponding tothat specific semester, for those goods listed in Annex 3.B.
6.
Chile may maintain a special safeguard measure, under Paragraph 5, only
until the end of the semester in which Chile applies the measure.
7
Supplies of the good in question which were en route on the basis of acontract settled before the additional customs duty is imposed under the terms ofthis Article shall be exempted from any such additional customs duty, provided thatthey may be counted in the volume of imports of the good in question during thefollowing semester for the purposes of triggering the provisions of Paragraph 5 inthat semester.
8.
Chile may not apply, with respect to the same good, a special safeguard
measure and at the same time apply or maintain a measure under Article XIX ofGATT 1994 and the Safeguards Agreement.
9.
Chile shall apply any special safeguard measure in a transparent manner.
Chile shall ensure that the current volume of imports is published in a manner
which is readily accessible to the other Parties, and shall give notice in writing,including relevant data, to the other Parties as far in advance as may bepracticable and in any event within 10 working days of the implementation of suchaction. If Chile decides not to apply a special safeguard measure where thespecified trigger volume has been or is about to be met, it shall notify the otherParties promptly of its decision.
10.
Upon request of a Party, Chile shall consult promptly and cooperate inexchanging information, as appropriate, with respect to the conditions for applying
a special safeguard measure.

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11.
The Committee on Trade in Goods may review the implementation andoperation of this Article.
12.
For purposes of this Article, special safeguard measure means a special
safeguard measure described in Paragraph 4 and base rate means the rate ofcustoms duty for an imported good as indicated in the Schedule of the importing
Party as set out in Annex I.

Article 3.14: Committee on Trade in Goods
1.
The Parties may establish a Committee on Trade in Goods that may meeton the request of any Party or the Commission to consider any matter arisingunder this Chapter and Chapter 4 (Rules of Origin).
2.

The Committee’s functions shall include:(a)reviewing the implementation of the Chapters referred to above; and(b)identification and recommendation of measures to promote and facilitate
improved market access, including addressing barriers to trade in goods
among the Parties, and to accelerate the tariff elimination under thisAgreement.

3-8Annex 3.A
Import and Export Measures

Measures of Chile

Article 3.8 shall not apply to measures of Chile relating to imports of used
vehicles.

3-9Annex 3.B
Special Safeguard Measures
For purposes of Article 3.13, goods originating in Brunei Darussalam,
New Zealand or Singapore that may be subject to a special safeguard measure
and the trigger levels for each such good are set out below:

List of Chile

Quantity Trigger Level
Code

Description

0402.1000-In powder, granules or other solid forms, of a fat
content, by weight, not exceeding 1.5 %- In powder, granules or other solid forms, of a fat
content, by weight, exceeding 1.5%:--Not containing added sugar or other sweetening
matter :---Milk----Of a fat content exceeding 1.5% but notexceeding 6%----Of a fat content exceeding 6% but notexceeding 12%----Of a fat content of 12%----Of a fat content exceeding 12% but notexceeding 18%----Of a fat content of 18%----Of a fat content exceeding 18% but notexceeding 24%----Of a fat content of 24% but not exceeding
26%----Of a fat content of 26% and more---Cream--Other---Milk----Of a fat content exceeding 1.5% but notexceeding 6%----Of a fat content exceeding 6% but notexceeding 12%----Of a fat content of 12%----Of a fat content of 12% but not exceeding
18%----Of a fat content of 18%

0402.210402.2111
0402.2112
0402.2113
0402.2114
0402.2115
0402.2116
0402.2117
0402.2118
0402.2120
0402.290402.2911
0402.2912
0402.2913
0402.2914
0402.2915

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Basket 1

Basket 1
Basket 1
Basket 1
Basket 1
Basket 1
Basket 1
Basket 1
Basket 1
Basket 2

Basket 1
Basket 1
Basket 1
Basket 1
Basket 1

Quantity Trigger Level

Code

Description

0402.2916----Of a fat content exceeding 18% but notexceeding 24%----Of a fat content of 24% but not exceeding
26%----Of a fat content of 26% and more---Cream- Other--Not containing added sugar or other sweetening
matter---Milk, whether in liquid or semi-solid form---Cream--Other---Condensed milk---Other
Buttermilk, curdled milk and cream, yogurt, kephirand other fermented or acidified milk and cream,
whether or not concentrated or containing addedsugar or other sweetening matter or flavoured orcontaining added fruit, nuts or cocoa

0402.2917
0402.2918
0402.2920
0402.910402.9110
0402.9120
0402.990402.9910
0402.9990
04.03

0403.9000
04.04

0404.100004.05
0405.10000405.2000
0405.9000
04.06
0406.100406.1030
0406.1090
0406.900406.9010
0406.9020
0406.9030
0406.9090-OtherWhey, whether or not concentrated or containing
added sugar or other sweetening matter;products consisting of natural milk constituents,
whether or not containing added sugar or othersweetening matter, not elsewhere specified or
included-Whey and modified whey, whether or notconcentrated or containing added sugar or othersweetening matter
Butter and other fats and oils derived from milk;
dairy spreads-Butter-Dairy spreads-OtherCheese and curd-Fresh (unripened or uncured) cheese, including
whey cheese, and curd--Mozzarella cheese--Other-Other cheese :--Gouda and Gouda-type cheese--Cheddar and Cheddar-type cheese--Edam and Edam-type cheese--Other

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Basket 1
Basket 1
Basket 1
Basket 1

Basket 3
Basket 3
Basket 4
Basket 5

Basket 6

Basket 6

Basket 7
Basket 7
Basket 8

Basket 9
Basket 9
Basket 9
Basket 9
Basket 9
Basket 9

Basket 1 : 112.2 tons
Basket 2 : 5.4 tons
Basket 3 : 27.6 tons
Basket 4 : 2.4 tons
Basket 5 : 0.6 tons
Basket 6 : 156 tons
Basket 7 : 240 tons
Basket 8 : 3.6 tons
Basket 9 : 87 tons
Notes:•The quantities set out above for baskets correspond to each semester. The
semesters run from January 1 to June 30 and July 1 to December 31 foreach year.

•

Each basket will have an annual growth rate of 8 percent which will becalculated at the end of each calendar year.

•

In the first calendar year following entry into force of the Agreement, the
8 percent annual growth rate will apply to that calendar year and eachcalendar year thereafter.

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CHAPTER 4
RULES OF ORIGIN

Article 4.1: Definitions
For the purposes of this Chapter:aquaculture means the farming of aquatic organisms including fish, molluscs,
crustaceans, other aquatic invertebrates and aquatic plants, from seedstock suchas eggs, fry, fingerlings and larvae, by intervention in the rearing or growth
processes to enhance production, such as regular stocking, feeding, or protection
from predators;
CIF means the value of the good imported and includes the cost of insurance andfreight up to the port or place of entry in the country of importation. The valuation
shall be made in accordance with the Customs Valuation Agreement;
FOB means the value of the good free on board, independent of the means oftransportation, at the port or site of final shipment abroad. The valuation shall bemade in accordance with the Customs Valuation Agreement;
goods wholly obtained or produced entirely in a Party means:(a)mineral goods extracted from the soil or seabed in the territory of a
Party;(b)

agricultural and plant products grown and harvested, picked or gatheredin the territory of a Party;(c)live animals, born and raised in the territory of a Party;(d)goods obtained from live animals in the territory of a Party;(e)goods obtained from hunting, trapping, fishing, farming, gathering,
capturing or aquaculture in the territory of a Party;(f)goods (fish, shellfish, plant and other marine life) taken within the
territorial sea or the relevant maritime zone of a Party seaward of theterritorial sea under that Party's applicable law in accordance with theprovisions of the United Nations Convention on the Law of the Sea 1982
by a vessel flying, or entitled to fly, the flag of that Party, or taken fromthe high seas by a vessel registered or recorded with that Party andflying its flag;

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(g)

goods obtained or produced on board a factory ship registered orrecorded with that Party and flying its flag, exclusively from products
referred to in Subparagraph (f);(h)

waste and scrap derived from production in the territory of a Party or
used articles or goods collected in the territory of a Party, provided thatsuch goods are fit only for the recovery of raw materials;(i)goods taken by a Party, or a person of a Party, from the seabed or
subsoil beneath the territorial sea or the continental shelf of that Party, in
accordance with the provision of the United Nations Convention on the
Law of the Sea 1982;(j)recovered goods derived in the territory of a Party from used goods andutilised in the territory of the Party in the production of remanufactured
goods; and(k) goods produced entirely in the territory of a Party exclusively from goods
referred to in Subparagraphs (a) to (j) or from their derivatives, at any
stage of production;
indirect material means a good used in the production, testing or inspection ofanother good but not physically incorporated into the good, or a good used in themaintenance of buildings or the operation of equipment associated with the
production of a good, including:(a)fuel, energy, catalysts and solvents;(b)equipment, devices, and supplies used for testing or inspecting thegoods;(c)gloves, glasses, footwear, clothing, safety equipment and supplies;(d)tools, dies and moulds;(e)spare parts and materials used in the maintenance of equipment andbuildings;(f)lubricants, greases, compounding materials and other materials used in
production or used to operate equipment and buildings; and(g)any other goods that are not incorporated into the good but whose use
in the production of the good can reasonably be demonstrated to be apart of that production.

4-2

material means a good or any matter or substance that is used or consumed in the
production of goods or transformation of another good;minimal operations or processes means operations or processes which
contribute minimally to the essential characteristics of the goods and which bythemselves, or in combination, do not confer origin;packing materials and containers for shipment means goods used to protect agood during its transportation, other than containers and packaging materials used
for retail sale;production means methods of obtaining goods including, but not limited to
growing, raising, mining, harvesting, fishing, farming, trapping, hunting, capturing,aquaculture, gathering, collecting, breeding, extracting, manufacturing, processing,assembling or disassembling a good;
recovered goods means materials in the form of individual parts that result from:(a)the complete disassembly of used goods into individual parts; and(b)the cleaning, inspecting, or testing or other processing of those parts,
and as necessary for improvement to sound working condition one ormore of the following processes: welding, flame spraying, surface
machining, knurling, plating, sleeving and rewinding in order for suchparts to be assembled with other parts, including other recovered partsin the production of a remanufactured good as listed in Annex 4.A;

remanufactured goods means an industrial good assembled in the territory of a
Party as listed in Annex 4.A, that:(a)is entirely or partially composed of recovered goods;(b)

has the same life expectancy and meets the same performancestandards as a new good; and(c)enjoys the same factory warranty as such a new good;transaction value means the price paid or payable for a good as determined by
the provisions of the Customs Valuation Agreement;
used means used or consumed in the production of goods;
value means the value of a good or material, pursuant to the provisions of the
Customs Valuation Agreement.

4-3

Article 4.2: Originating Goods
Unless otherwise indicated in this Chapter, a good shall be considered asoriginating in a Party when:(a)the good is wholly obtained or produced entirely in the territory of one
Party, pursuant to the definition in Article 4.1;(b)

the good is produced entirely in the territory of one or more Parties,
exclusively from materials whose origin conforms to the provisions of
this Chapter; or(c)the good is produced in the territory of one or more Parties, using nonoriginating materials that conform to a change in tariff classification, a
regional value content, or other requirements specified in Annex II, andthe good meets the other applicable provisions of this Chapter.

Article 4.3: Regional Value Content
1.
Where Annex II refers to a regional value content, each Party shall providethat the regional value content of a good shall be calculated on the basis of thefollowing method:
TV - VNM
RVC = --------------- x 100
TVwhere:
RVC

is the regional value content expressed as a percentage;TV
is the transaction value of the good, adjusted on an FOB
basis, except as provided in Paragraph 3. If no such value exists orcannot be determined, pursuant to the principles of Article 1 of the
Customs Valuation Agreement, it shall be calculated pursuant to theprinciples of Articles 2 to 7 of that Agreement; andVNM
is the transaction value of the non-originating materials, when
they were first acquired or supplied to the producer of the goods,
adjusted on a CIF basis, except as provided in Paragraph 4. If suchvalue does not exist or cannot be determined, pursuant to the principlesof Article 1 of the Customs Valuation Agreement, it shall be calculated
pursuant to that Agreement.

4-4

2.
The value of the non-originating materials used by the producer in the
production of a good shall not include, for purposes of calculating the regional
value content, pursuant to Paragraph 1, the value of non-originating materials used
to produce the originating materials subsequently used in the production of thegood.
3.
When the producer of a good does not export it directly, the value shall be
adjusted up to the point at which the purchaser receives the good within the
territory of a Party where the producer is located.
4.
When the producer of the good acquires a non-originating material in the
territory of the Party where it is located, the value of such material shall not include
freight, insurance, packing costs and any other costs incurred in transporting thematerial from the supplier's warehouse to the producer's location.

Article 4.4: Operations that do not Confer Origin
The minimal operations or processes that do not confer origin, include thefollowing:(a)operations to ensure the preservation of products in good condition
during transport and storage (such as drying, freezing, ventilation,
chilling and like operations);(b)

simple operations consisting of sifting, classifying, washing, cutting,slitting, bending, coiling, or uncoiling;(c)changes of packing and breaking up and assembly of consignments;(d)packing, unpacking or repacking operations;(e)affixing of marks, labels or other like distinguishing signs on products
or their packaging; and(f)mere dilution with water or another substance that does notmaterially alter the characteristics of the goods.

Article 4.5: Accumulation
Originating goods or materials of any of the Parties used in the production of
goods in the territory of another Party shall be considered to originate in the
territory of the latter Party.

4-5Article 4.6: De Minimis
A good that does not conform to a change in tariff classification, pursuant to
the provisions of Annex II, shall be considered to be originating if the value of all
non-originating materials used in its production not meeting the change in tariffclassification requirement does not exceed 10 percent of the transaction value ofthe given good pursuant to Article 4.3, and the good meets all the other applicable
criteria of this Chapter.

Article 4.7: Accessories, Spare Parts, and Tools
1.
Normal accessories, spare parts, or tools provided with the good as part ofthe standard accessories, spare parts, or tools shall be regarded as originating
goods and shall be disregarded in determining whether or not all the nonoriginating materials used in the production of the originating goods undergo theapplicable change in tariff classification, provided that:(a)the accessories, spare parts, or tools are classified with and not invoiced
separately from the good; and(b)the quantities and the value of those accessories, spare parts, or tools
are the normal ones for the good.

2.
If the goods are subject to a regional value content requirement, the value ofthe accessories, spare parts, or tools shall be taken into account as originating or
non-originating materials, as the case may be, in calculating the regional value
content of the goods.

Article 4.8: Packaging Materials and Containers for Retail Sale
Packaging materials and containers in which goods are packaged for retailsale, if classified with the goods, shall be disregarded in determining whether all
the non-originating materials used in the production of those goods haveundergone the applicable change in tariff classification set out in Annex II.
However, if the goods are subject to a regional value content requirement the valueof the packaging used for retail sale will be counted as originating or nonoriginating, as the case may be, in calculating the regional value content of thegoods.

4-6

Article 4.9: Packing Materials and Containers for Shipment
Packing materials and containers in which a good is packed exclusively fortransport shall not be taken into account for purposes of establishing whether thegood is originating.

Article 4.10: Indirect Materials
Indirect materials shall be considered to be originating materials without
regard to where they are produced and its value shall be the cost registered in theaccounting records of the producer of the good.

Article 4.11: Transit through Non-Parties
1.
Preferential tariff treatment provided for in this Agreement shall be applied togoods that satisfy the requirements of this Chapter and which are directlytransported among the Parties.
2.
Notwithstanding Paragraph 1, goods shall be authorised to transit throughnon-Party countries, and to remain stored for a reasonable period of time, which inno case shall be more than 6 months from the date of entry of the goods into thethird non-Party country.
3.
Goods shall be eligible for preferential tariff treatment in accordance withthis Agreement if they are transported through the territory of one or more nonParties, provided that the goods:
(a)

did
not
undergooperations
other
than
unloading,reloading, or any other operation necessary to preserve them in goodcondition; and(b)

did not enter the commerce of such non-Parties after the shipment fromthe Party and before the importation into another Party.

Compliance with the provisions set out in Paragraphs 2 and 3 shall be
4.
proved by means of supplying to the customs authorities of the importing Party
either customs documents of the third country or documents of the competentauthorities, including commercial shipping or freight documents.

4-7

Article 4.12: Outward Processing
Notwithstanding the relevant provisions of Article 4.2 and the product1.
specific requirements set out in Annex II, a good listed in Annex 4.B shall beconsidered as originating even if it has undergone processes of production oroperation outside the territory of a Party on a material exported from the Party andsubsequently re-imported to the Party, provided that:(a)the total value of non-originating materials as set out in Paragraph 2
does not exceed 55 percent of the customs value of the final good forwhich originating status is claimed;(b)

the materials exported from a Party shall have been wholly obtained or
produced in the Party or have undergone therein, processes of
production or operation going beyond the minimal processes oroperations in Article 4.4, prior to being exported outside the territory of
the Party;(c)the producer of the exported material is the same producer of the final
good for which originating status is claimed;(d)the re-imported good has been obtained through processes of
production or operation of the exported material; and(e)the last process of manufacture of the good was performed in the
territory of the Party, and this process is the last activity undertaken in
respect to a good that finally transforms it into a good different from its
component parts or materials and a new good is therefore
manufactured.

For the purposes of Paragraph 1(a), the total value of non-originating
2.
materials shall be the value of any non-originating materials added in a Party as
well as the value of any materials added and all other costs accumulated outside
the territory of the Party, including transportation costs.
3.
For greater certainty, the verification procedures referred to in Article 4.16
shall apply in order to ensure the proper application of this Article. Suchprocedures include the provision of information and supporting documentation,
including that relating to the export of originating materials and the subsequent reimport of the goods subsequently exported as originating goods, by the exporting
customs administration or exporter upon receipt of a written request from thecustoms administration of the importing Party through the customs administrationof the exporting Party.
4.
Upon the request of a Party, the list of products in Annex 4.B may be
modified by the Commission.
4-8Article 4.13: Treatment of Goods for which Preference is Claimed
1.
A Party can accept either; a declaration as to origin on the export invoice(declaration), or a certificate of origin, in respect of a good imported from any otherParty for which an importer claims preferential tariff treatment.
2.
An exporter or producer may elect to use either a declaration as to origin on
the export invoice or a certificate of origin, either of which may then be used by theimporter as evidence of origin in respect to goods for which preferential tariff
treatment is claimed.
3.
The declaration or certificate of origin shall be completed by the exporter or
producer, as the case may be. The declaration or certificate of origin shall:(a)specify that the goods enumerated thereon are the origin of theexporting Party and meet the terms of this Chapter;(b)

be made in respect of one or more goods; and which can include avariety of goods; and(c)be completed in English.

4.
The export invoice upon which the declaration as to origin is affixed and inrespect of the goods subject to the declaration shall include:(a)a full description;(b)

six digit Harmonized System Code;(c)the producer's name(s) if known; and(d)the importer's name(s) in respect of imported goods, if known.

5.
If the export invoice does not include the information referred to in
Paragraph 4, it must be added in "observations" on the declaration as to origin in
the form set out in Annex 4.C.
6.
The declaration shall be in the form set out in Annex 4.C, and the certificate
of origin shall be in the form set out in Annex 4.D. These requirements may
thereafter be revised or modified by an Implementing Arrangement agreed among
the Parties.
7.
The declaration and the certificate of origin shall remain valid for a period of
2 years from the date on which the respective documents were issued.
4-9

8.
If the exporter is not the producer of the good referred to on the declarationor on the certificate of origin, that exporter may complete and sign the declarationon the basis of:(a)the exporter's knowledge of whether the good qualifies as an originating
good; or(b)a producer’s written declaration that the good qualifies as an originating
good in that it meets the terms of this Chapter.

9.
Nothing in Paragraph 8(b) shall be construed to require a producer who is
not the exporter of the good to make a declaration or complete a certificate oforigin.
10.
Slight discrepancies as between the wording and detail stated on the export
invoice or certificate of origin produced to the customs administration of theimporting Party in clearance of goods shall not, of itself, cause any claim forpreferential tariff treatment to be denied.
11.
Any declaration or certificate of origin presented in the clearance of goods
issued in advance of the entry into force of this Agreement shall, if presented on orafter the date of entry into force of this Agreement, be accepted as evidence as tothe origin of the good specified thereon.
12.
The customs administration of the importing Party shall, in accordance withits domestic legislation, grant preferential tariff treatment to goods of another Party
only in those instances that an importer:(a)

provides to the customs administration a declaration or certificate oforigin in accord with the provisions of this Article; or(b)provides sufficient documentary or other evidence to substantiate thetariff preference claimed for the goods.

13.
The Parties shall, in accordance with their domestic legislation, provide that
where an importer claims at the time of importation a good can meet the terms ofthis Chapter and would thereby have qualified for preferential tariff treatment but
was unable to provide a declaration or a certificate of origin or other such evidence
as provided for in Paragraph 12 the importer may, in accordance with domestic
legislation or within 1 year from date of importation, apply for a refund of any
excess customs duties paid as a result of the goods not having been accorded
preferential tariff treatment, on production of:(a)a declaration or certificate of origin that the good qualifies as an
originating good; and
4-10

(b)

such other evidence as the customs administration may require tosatisfactorily evidence the tariff preference claimed.

14.
An importing Party may not require a declaration or certificate of origin toadmit goods pursuant to tariff preference where:(a)the customs value does not exceed US$1000 or the equivalent amountin the Party's currency or a higher amount as it may establish; or(b)in respect of specific goods, a Party has waived the requirement forsuch evidence.

15.
In accordance with Paragraph 14, where an importation forms part of aseries of importations that may reasonably be considered to have been undertaken
or arranged for the purposes of avoiding the origin requirements of this Article, thecustoms administration of the importing Party may deny preferential tariff
treatment.

Article 4.14: Obligations Regarding Exports
1.
Where the exporter or producer becomes aware that it has provided anerroneous or false declaration or certificate of origin or any other such erroneous orfalse evidence, the exporter or producer shall give notice as soon as possible tothe customs administrations of the importing and exporting Party, as well as theimporter, of any change that would affect the accuracy or validity of a declaration or
certificate of origin.
2.
The exporter or producer that has provided a declaration or a certificate oforigin, shall provide a copy of these documents to its exporting Party's customs
administration upon request.
3.
With respect to exports, each Party shall provide penalties for false
declarations, certification, or documentation related to origin submitted to acustoms administration by an exporter or producer in its territory.

Article 4.15: Records
Each Party shall require that producers, exporters and importers in theirrespective territories maintain for a period of not less than 3 years after the date ofexportation or importation, as the case may be, all records relating to thatexportation or importation which are necessary to demonstrate that a good forwhich a claim for tariff preference was made qualifies for preferential tariff
treatment.
4-11

Article 4.16: Verification of Origin
1.
For the purposes of determining whether goods imported into the territory ofa Party from the territory of another Party qualify as originating goods, theimporting Party may, through its customs administration, verify any claims made fortariff preference by means of:(a)written requests for information addressed to the importer;(b)

written questions and requests for information addressed to the exporteror producer in the territory of the exporting Party through the customs
administrations of the exporting Party;(c)requests to the customs administration of the exporting Party to verify
the origin of the good; or(d)such other procedures as the customs administrations of the Parties
may agree.

2.
If the mechanism established in Paragraph 1 fails to determine the origin ofa good, the importing Party may request, through the customs administration of theexporting Party, to visit the premises of the exporter or producer in the territory of
the exporting Party:

3.

(a)

to review records referring to origin; and(b)to observe the facilities used in production of the goods.

The requesting Party shall, through its customs administration:(a)ensure that any request made to the customs administration of theexporting Party is sufficiently material to warrant the request and isaccompanied by sufficient information to identify the particular goods
and the exporter or producer of those goods; and(b)specify a period of 60 days from the date the written questions orrequest was sent to the exporter or producer to fully respond to thequestions or request.

4.
The Parties agree to facilitate requests for assistance through their customs
administrations under this Article within 10 days of receipt of the request.

4-12

Article 4.17: Decision on Origin
1.
If as a result of questions put or visits made to the exporter or producer therequesting Party is satisfied the goods about which those questions were put orvisits made are originating goods pursuant to the provisions of this Chapter, it shallpermit preferential access for those goods.
2.

Preferential tariff treatment may be denied if:(a)the goods do not or did not meet the requirements of this Chapter;(b)

the exporter or producer fails to respond fully to questions put by thecustoms administration of the importing Party within 60 days of the dateof the request of the importing Party, or such other extended period oftime as may be specified by the customs administrations of theimporting Party, but not more than an additional 30 days;(c)the requested customs administration is, for any reason, unable tocomply with a request from the customs administration of the importing
Party to verify the origin of goods and advises the requesting customs
administration of this inability or, fails to respond to a request within 90
days; or(d)the exporter or producer does not agree to a visit by the customs
administration of the importing Party within 30 days.

3.
In the event preferential tariff treatment is denied the importing Party shallensure that its customs administration provides in writing to the exporter, theimporter or producer, as the case may be, full reasons for that decision.
4.
Where verifications by a Party indicate a pattern of conduct by an exporteror a producer of false or unsupported representations that a good imported into its
territory qualifies as an originating good, the Party may withhold preferential tariff
treatment to identical goods exported or produced by such a person until it issatisfied that the exporter or producer is no longer making false or unsupported
representations as to origin.

Article 4.18: Costs Incurred1.
by:

The ordinary costs of complying with a request for verification will be borne(a)the requested Party; or

4-13

(b)

the Party which visits an exporter or producer, as the case may be, inthe territory of the other Party.

2.
Where extraordinary costs or doubts in determining costs arise, these shallbe resolved by mutual agreement between Parties.

4-14

Annex 4.A
Goods classified in the following Harmonized System subheadings may beconsidered remanufactured goods, except for those designed principally for use inautomotive goods of Harmonized System headings or subheadings 8702, 8703,
8704.21, 8704.31, 8704.32, 8706 and 8707:
8408.108408.208408.908409.108409.918409.998412.218412.298412.39
8412.90
8413.30
8413.50
8413.60
8413.918414.30
8414.808414.908483.108483.30
8483.40
8483.50
8483.60
8483.90
8503.00
8511.40
8511.508526.108537.108542.214-15

Annex 4.B

Goods classified in the following Harmonized System subheadings are goods towhich Article 4.12 (Outward Processing) applies:
4014.907015.407019.908207.198409.998412.808414.598414.808414.908415.818415.90
8421.218421.998422.30
8422.40
8423.828423.898423.908424.30
8424.908437.908441.108443.908451.298462.318462.99
8467.228467.918467.99
8471.60
8471.708471.80
8473.298473.30
8479.898479.908480.208480.49
8480.794-16

8483.50
8484.208501.208501.318501.32
8501.33
8501.34
8501.53
8501.61
8501.628502.118502.128502.138502.208502.318502.398502.40
8504.218504.228504.318504.328504.33
8504.34
8504.40
8504.90
8505.118505.198506.90
8507.40
8509.208509.908511.208511.808514.108514.30
8514.408514.908515.118515.198515.218515.318515.808515.908516.218516.33
8518.294-17

8518.50
8520.328520.338520.398520.908522.108522.908523.30
8524.60
8525.108525.30
8526.108526.918526.92
8531.908535.298535.408536.418536.498539.298539.32
8539.398539.418539.498539.908540.728540.798540.898542.218542.298543.208543.30
8543.908544.418545.208546.108548.108714.938714.968803.30
8905.20
9001.109001.50
9006.109008.30
9010.904-18

9013.80
9017.209017.809018.119027.909031.109031.809032.909033.00
9403.709403.809405.50

4-19

Annex 4.C
DECLARATION AS TO ORIGIN

I[state name and position] being the[producer and exporter][producer][exporter] (insert only that which applies) hereby
declare that the goods enumerated on this invoice are originating from [Brunei
Darussalam] [Chile] [New Zealand] [Singapore] (insert only that which applies) inthat they comply with the provisions of Article 4.13 of the Trans-Pacific Strategic
Economic Partnership Agreement entered into among Brunei Darussalam, Chile,
New Zealand and Singapore.

Observations:

Date:

Signature

4-20

Annex 4.D
TRANS-PACIFIC STRATEGIC ECONOMIC PARTNERSHIP AGREEMENTCERTIFICATE OF ORIGIN
Issuing Number:
1: Exporter (Name and Address)

Tax ID No:
2: Producer (Name and Address)

Tax ID No:
4. Description of Good(s)3: Importer (Name and Address)

5. HS No.

6. Preference
Criterion

7. Producer

8. Regional
Value
Content

9. Country of
Origin

10: Certification of Origin
I certify that:zzz

The information on this document is true and accurate and I assume the responsibility for providing such representations. I
understand that I am liable for any false statements or material omissions made on or in connection with this document.
I agree to maintain and present upon request, documentation necessary to support this certificate, and to inform, in writing,all persons to whom the certificate was given of any changes that could affect the accuracy or validity of this certificate.
The goods originated in the territory of the Parties, and comply with the origin requirements specified for those goods in
TRANS-PACIFIC STRATEGIC ECONOMIC PARTNERSHIP AGREEMENT, and there has been no further production or
any other operation outside the territories of the Parties in accordance with Article 4.11 of the Agreement.

Authorised Signature

Company Name

Name (Print or Type)

Title

Date (DD/MM/YY)

Telephone / Fax /E-mail4-21

TRANS-PACIFIC STRATEGIC ECONOMIC PARTNERSHIP AGREEMENTCERTIFICATE OF ORIGIN INSTRUCTIONS
Pursuant to Article 4.13, for the purposes of obtaining preferential tariff treatment this document must be completed legibly and in full by
the exporter or producer and be in the possession of the importer at the time the declaration is made. Please print or type:
Issuing Number: Fill in the serial number of the certificate of origin.
Field 1:

State the full legal name, address (including country) and legal tax identification number of the exporter. The legal tax
identification number in Chile is the Unique Tax Number (“Rol Unico Tributario”). The tax identification number is notapplicable for Brunei Darussalam, New Zealand and Singapore.

Field 2:

If one producer, state the full legal name, address (including country, telephone number, fax number and email address) andlegal tax identification number, as defined in Field 1, of said producer. (Tax ID is not applicable to Brunei Darussalam,
New Zealand and Singapore.) If more than one producer is included on the Certificate, state "Various" and attach a list of
all producers, including their legal name, address (including country, telephone number, fax number and email address) andlegal tax identification number, cross referenced to the good or goods described in Field 4. If you wish this information to
be confidential, it is acceptable to state " Available to Customs upon request". If the producer and the exporter are thesame, complete field with "SAME". If the producer is unknown, it is acceptable to state "UNKNOWN".

Field 3:

State the full legal name, address (including country) as defined in Field 1, of the importer; if the importer is not known,state "UNKNOWN"; if multiple importers, state "VARIOUS".

Field 4:

Provide a full description of each good. The description should be sufficient to relate it to the invoice description and to theHarmonized System (HS) description of the good.

Field 5:For each good described in Field 4, identify the HS tariff classification to six digits.

Field 6:For each good described in Field 4, state which criterion (A through C) is applicable. The rules of origin are contained in
Chapter 4 and Annex II of the Agreement. NOTE: In order to be entitled to preferential tariff treatment, each good mustmeet at least one of the criteria below.

Preference CriteriaA

The good is "wholly obtained or produced entirely" in the territory of one or more of the Parties, as referred to in Article 4.1 and4.2 of the Agreement. NOTE: The purchase of a good in the territory does not necessarily render it "wholly obtained or
produced".

B

The good is produced entirely in the territory of one or more of the Parties exclusively from originating materials. All
materials used in the production of the good must qualify as "originating" by meeting the rules of Chapter 4 of the Agreement.

C

The good is produced entirely in the territory of one or more of the Parties and satisfies the specific rule of origin set out inAnnex II of the Agreement (Specific Rules of Origin) that applies to its tariff classification as referred to in Article 4.2, or theprovisions under Article 4.12 of the Agreement. The rule may include a tariff classification change, regional value-content
requirement and a combination thereof, or specific process requirement. The good must also satisfy all other applicablerequirements of Chapter 4 (Rules of Origin) of the Agreement.

Field 7:For each good described in Field 4, state "YES" if you are the producer of the good. If you are not the producer of the good,state "NO" followed by (1) or (2), depending on whether this certificate was based upon: (1) your knowledge of whether thegood qualifies as an originating good; (2) Issued by the producer's written Declaration of Origin, which is completed andsigned by the producer and voluntarily provided to the exporter by the producer.

Field 8:For each good described in Field 4, where the good is subject to a regional value content (RVC) requirement stipulated in theAgreement, indicate the percentage.

Field 9:Identify the name of the country. ("BN" for all goods originating from Brunei Darussalam, "CL" for all goods originatingfrom Chile, "NZ" for all goods originating from New Zealand, "SG" for all goods originating from Singapore)

Field 10: This field must be completed, signed and dated by the exporter or producer. The date must be the date the Certificate wascompleted and signed.

4-22

CHAPTER 5CUSTOMS PROCEDURES

Article 5.1: Definitions
For the purposes of this Chapter:customs law means any legislation administered, applied or enforced by thecustoms administration of a Party;
customs offence means any breach or attempted breach of customs law;customs procedures means the treatment applied by the customs administrationof each Party to goods, which are subject to customs control.

Article 5.2: Objectives
The objectives of this Chapter of the Agreement are to:(a)ensure predictability, consistency and transparency in the application ofcustoms laws and other customs administrative policies of the Parties;(b)ensure efficient, economical administration of customs procedures, andthe expeditious clearance of goods;(c)facilitate trade among the Parties;(d)apply simplified customs procedures; and(e)promote cooperation among the customs administrations.

Article 5.3: Scope
This Chapter shall apply, in accordance with each Party's respective
international obligations and customs law, to customs procedures applied to goods
traded among the Parties.

5-1

Article 5.4: Customs Procedures and Facilitation
1.
Customs procedures of the Parties shall, where possible and to the extent
permitted by their respective customs law, conform with the standards andrecommended practices of the World Customs Organisation, including theprinciples of the International Convention on the Simplification and Harmonisationof Customs Procedures.
2.
Each Party shall ensure that its customs procedures and practices are
predictable, consistent, transparent and facilitate trade.

3.
The customs administrations of the Parties shall periodically review theircustoms procedures with a view to their further simplification and the developmentof further mutually beneficial arrangements to facilitate trade.

Article 5.5: Customs Cooperation
1.
To the extent permitted by their domestic law, the customs administrationsof the Parties may, as they deem fit, assist each other, in relation to originating
goods, by providing information on the following:(a)the implementation and operation of this Chapter;(b)

the movement of goods among the Parties;(c)

investigation and prevention of prima facie customs offences;(d)developing and implementing
management techniques;(e)simplifying and expediting customs procedures;(f)advancing technical skills and the use of technology;(g)application of the Customs Valuation Agreement; and(h)additional assistance in respect to other matters.

customs

best

practice

and

risk

2.
Where a Party providing information to another Party in accordance with this
Chapter designates the information as confidential, the other Party shall maintainthe confidentiality of the information.

5-2

Article 5.6: Customs Valuation
The Parties shall determine the customs value of goods traded among themin accordance with the provisions of Article VII of GATT 1994 and the Customs
Valuation Agreement.

Article 5.7: Advance Rulings
1.
Each Party, through its customs administration, shall provide in writing
advance rulings in respect of the tariff classification and origin of goods andwhether a good qualifies for entry free of customs duty in accordance with
Article 3.5 (Goods Re-entered After Repair or Alteration) (hereinafter referred to as“advance rulings”), to a person described in Subparagraph 2(a).
2.
Each Party shall adopt or maintain procedures for advance rulings, whichshall:(a)provide that an importer in its territory or an exporter or producer in the
territory of another Party may apply for an advance ruling before theimportation of goods in question;(b)require that an applicant for an advance ruling provide a detailed
description of the goods and all relevant information needed to issue anadvance ruling;(c)

provide that its customs administration may, at any time during thecourse of issuing an advance ruling, request that the applicant provide
additional information within a specified period;(d)provide that any advance ruling be based on the facts andcircumstances presented by the applicant, and any other relevant
information in the possession of the decision-maker; and(e)provide that an advance ruling be issued to the applicant expeditiously,
or in any case within 60 days of the receipt of all necessary information.

3.
A Party may reject requests for an advance ruling where the additional
information requested by it in accordance with Subparagraph 2(c) is not provided
within a specified time.
4.
Subject to Paragraph 5, each Party shall apply an advance ruling to allimportations of goods described in that ruling imported into its territory within
3 years of the date of that ruling, or such other period as required by that Party's
laws.

5-3

5.
A Party may modify or revoke an advance ruling upon a determination thatthe ruling was based on an error of fact or law, the information provided is false or
inaccurate, if there is a change in domestic law consistent with this Agreement, or
there is a change in a material fact, or circumstances on which the ruling is based.
6.
Subject to the confidentiality requirements of a Party’s domestic law, eachParty shall publish its advance rulings.
7.
Where an importer claims that the treatment accorded to an imported goodshould be governed by an advanced ruling, the customs administration may
evaluate whether the facts and circumstances of the importation are consistent
with the facts and circumstances upon which an advanced ruling was based.
8

The importing Party may apply measures as provided in Article 5.12.

Article 5.8: Review and Appeal
1.

Each Party shall ensure that the importers in its territory have access to:(a)administrative review independent of the official or office that issued thedetermination subject to review; and(b)judicial review of the determination taken at the final level ofadministrative review, in accordance with the Party's domestic law.

2.
Notice of the decision on appeal shall be given to the appellant and thereasons for such decision shall be provided in writing.
3.
The level of administrative review may include any authority supervising thecustoms administration.

Article 5.9: Consultation
The customs administrations of the Parties will encourage consultation witheach other regarding significant customs issues that affect goods traded among
the Parties.

5-4

Article 5.10: Paperless Trading
1.
The customs administrations shall each endeavour to provide an electronic
environment that supports business transactions between it and its trading
communities.
2.
In implementing initiatives that provide for paperless trading, the customs
administrations of the Parties shall take into account the methods developed in
APEC and the World Customs Organisation.

Article 5.11: Express Consignments
Each Party shall ensure efficient clearance of all shipments, while maintaining
appropriate control and customs selection. In the event that a Party's existing
system does not ensure efficient clearance, it should adopt procedures to expedite
express consignments to:(a)provide for pre-arrival processing of information related to express
consignments;(b)permit the submission of a single document covering all goods
contained in a shipment transported by the express shipment company
through electronic means if possible; and(c)minimise, to the extent possible, the documentation required for the
release of express consignments.

Article 5.12: Penalties
Each Party shall adopt or maintain measures that provide for the impositionof civil, criminal or administrative penalties, whether solely or in combination, forviolations of its customs laws consistent with the provisions of this Chapter.

Article 5.13: Risk Management
1.
The Parties shall administer customs procedures so as to facilitate theclearance of low-risk goods and focus on high-risk goods. To enhance the flow ofgoods across their borders the customs administrations shall regularly review
these procedures.
2.
Where a customs administration deems that the inspection of goods is notnecessary to authorise clearance of the goods from customs control, the Party
shall endeavour to provide a single point for the documentary or electronic
processing of all imports and exports.
5-5Article 5.14: Release of Goods
Each Party shall adopt or maintain procedures allowing, to the greatest
extent possible, goods to be released:(a)within 48 hours of arrival; and(b)at the point of arrival, without temporary transfer to warehouses or otherlocations.

Article 5.15: Enquiry Points
Each Party shall designate one or more enquiry points to address enquires
from interested persons concerning customs matters, and shall make available on
the Internet or in print form information concerning procedures for making suchenquires.

Article 5.16: Confidentiality
Nothing in this Chapter shall be construed to require any Party to furnish orallow access to confidential information pursuant to this Chapter the disclosure ofwhich it considers would:(a)be contrary to the public interest as determined by its legislation;(b)

be contrary to any of its legislation including but not limited to those
protecting personal privacy or the financial affairs and accounts ofindividual customers of financial institutions;(c)

impede law enforcement; or(d)prejudice the competitive position of the person providing theinformation.

5-6

CHAPTER 6
TRADE REMEDIESArticle 6.1: Global Safeguards
1.
Nothing in this Agreement affects the rights and obligations of the Parties
under Article XIX of GATT 1994 and the Safeguards Agreement or any
amendments or provisions that supplement or replace them.
2.
This Agreement does not confer any additional rights or obligations on theParties with regard to actions taken pursuant to Article XIX of GATT 1994 and the
Safeguards Agreement.
3.
As a courtesy, a Party shall advise the other Parties of a safeguard action
on initiation of an investigation and the reasons for it.

Article 6.2: Antidumping and Countervailing Duties
1.
Nothing in this Agreement affects the rights and obligations of the Parties
under Article VI of GATT 1994, the Agreement on Implementation of Article VI of
the General Agreement on Tariffs and Trade 1994 which is part of the WTO
Agreement (Antidumping Agreement) and the Agreement on Subsidies andCountervailing Measures which is part of the WTO Agreement (SCM Agreement)with regard to the application of antidumping and countervailing duties or any
amendments or provisions that supplement or replace them.
2.
This Agreement does not confer any additional rights or obligations on theParties with regard to actions taken pursuant to Article VI of GATT 1994, theAntidumping Agreement and the SCM Agreement.

6-1

CHAPTER 7SANITARY AND PHYTOSANITARY MEASURES

Article 7.1: Definitions
1.

For the purposes of this Chapter:

SPS Agreement means the Agreement on the Application of Sanitary andPhytosanitary Measures, which is part of the WTO Agreement.
2.
The definitions in Annex A of the SPS Agreement are incorporated into this
Chapter and shall form part of this Chapter, mutatis mutandis.
3.
The relevant definitions developed by the international organisations
International Office of Epizootics (OIE), International Plant Protection Convention(IPPC), and Codex Alimentarius Commission apply in the implementation of this
Chapter.

Article 7.2: Objectives
The objectives of this Chapter are to:(a)uphold and enhance implementation of the SPS Agreement andapplicable international standards, guidelines and recommendations
developed by relevant international organizations (OIE, IPPC and Codex
Alimentarius Commission);(b)

expand trade opportunities through facilitation of trade among theParties through seeking to resolve trade access issues, while protecting
human, animal or plant life or health in the territory of the Parties;(c)provide a means to improve communication, cooperation and resolutionof sanitary and phytosanitary issues; and(d)establish a mechanism for the recognition of equivalence of sanitary andphytosanitary measures and regionalisation practices maintained by theParties consistent with the protection of human, plant and animal life or
health.

7-1

Article 7.3: Scope
1.
This Chapter shall apply to all sanitary or phytosanitary measures of a Party
that may, directly or indirectly, affect trade among the Parties.
2.
Nothing in this Chapter or Implementing Arrangements shall limit the rights
or obligations of the Parties pursuant to the SPS Agreement.

Article 7.4: Committee on Sanitary and Phytosanitary Matters
1.
The Parties hereby establish a Committee on Sanitary and Phytosanitary
Matters (the Committee) which shall include representatives of the competentauthorities of the Parties.
2.
The Committee shall meet within one year of the entry into force of thisAgreement and at least annually thereafter or as mutually determined by theParties. The Committee shall establish its rules of procedure at its first meeting. It
shall meet in person, teleconference, video conference, or through any othermeans, as mutually determined by the Parties. The Committee may also address
issues through correspondence.
3.
The Committee may agree to establish technical working groups consistingof expert-level representatives of the Parties, which shall identify and address
technical and scientific issues arising from this Chapter. When additional expertiseis needed, the membership of these groups need not be restricted torepresentatives of the Parties.
4.
The Committee shall consider any matters relating to the implementation of
the Chapter including:(a) establishing, monitoring and reviewing work plans; and(b) initiating, developing, adopting, reviewing and modifying Implementing
Arrangements on technical matters which further elaborate theprovisions of this Chapter in order to facilitate trade among the Parties.
5.
The Implementing Arrangements referred to in Paragraph 4(b) shall include
the following:(a)Competent Authorities and Contact Points (Implementing Arrangement
1);

(b)

Diseases and Pests for which Regionalisation Decisions can be Taken(Implementing Arrangement 2);

7-2

(c)

Criteria for Regionalisation Decisions (Implementing Arrangement 3);(d)

Recognition of Measures (Implementing Arrangement 4);(e)

Guidelines for Conducting an Audit (Implementing Arrangement 5);(f)

Certification (Implementing Arrangement 6);(g)

Import Checks (Implementing Arrangement 7); and(h)Equivalence: Procedures for Determination (Implementing Arrangement
8).

6.
Each Party responsible for the implementation of an Implementing
Arrangement shall take all necessary actions to implement such Arrangement
within three months following its adoption, unless otherwise agreed by the relevant
Parties.
7.
The Committee shall report to the Commission on the implementation of this
Chapter.

Article 7.5: Competent Authorities and Contact Points
1.
The competent authorities responsible for the implementation of themeasures referred to in this Chapter are listed in Implementing Arrangement 1.
The contact points that have the responsibilities relating to notification are also set
out in Implementing Arrangement 1.
2.
The Parties shall inform each other of any significant changes in the
structure, organisation and division of the competency of its competent authorities
or contact points.

Article 7.6: Adaptation to Regional Conditions
1.
Where a Party has an area or part of its territory free of a disease or pest,
the Parties may agree in accordance with Implementing Arrangement 3, to list thisstatus and the measures in place in Implementing Arrangement 2 to ensure thatthe disease or pest free status will be maintained in the event of an incursion.
2.
In the event of an incursion of a disease or pest specified in Implementing
Arrangement 2, the importing Party shall recognise the exporting Party’s measures
specified in Implementing Arrangement 2 for the purpose of facilitating trade
among the Parties.

7-3

3.
The Parties may agree to list additional diseases or pests in Implementing
Arrangement 2, in accordance with the criteria specified in Implementing
Arrangement 3.
4.
Where one of the Parties considers that it has a special status with respect
to a specific disease or pest, it may request recognition of this status. The Party
concerned may also request specific guarantees in respect of imports of animals
and animal products, plants and plant products, and other related goods
appropriate to the agreed status. The guarantees for specific diseases and pests
shall be specified in Implementing Arrangement 4.

Article 7.7: Equivalence
1.
Equivalence may be recognised by the Parties in relation to an individual
measure and/or groups of measures and/or systems applicable to a sector or partof a sector as specified in Implementing Arrangement 4.
The equivalence
determinations recorded in Implementing Arrangement 4 shall be applied to trade
among the relevant Parties in animals and animal products, plants and plant
products, or as appropriate to related goods.
2.

The recognition of equivalence requires an assessment and acceptance of:(a)the legislation, standards and procedures, as well as the programmes inplace to allow control and to ensure domestic and importing country
requirements are met;(b)

the documented structure of the competent authority(ies), their powers,
their chain of command, their modus operandi and the resources
available to them; and(c)the performance of the competent authority in relation to the control andassurance programmes.

In this assessment, the Parties shall take account of experience already acquired.
3.
The importing Party shall accept the sanitary or phytosanitary measure of
the exporting Party as equivalent if the exporting Party objectively demonstrates
that its measure achieves the importing Party's appropriate level of protection. In
reaching a determination of whether a sanitary or phytosanitary measure appliedby an exporting Party achieves the importing Party's appropriate level of protection,
those Parties shall follow the process specified in Implementing Arrangement 8.
The Parties may add to or amend the steps in the process in the future as theParties’ experience in regard to the determination of equivalence processincreases.

7-4

4.
Where equivalence has not been recognised or where an application ispending, trade shall take place under the conditions required by the importing Party
to meet its appropriate level of protection. These conditions shall be as set out in
Implementing Arrangement 4 where such conditions have been agreed. If
conditions have not been agreed and incorporated in Implementing Arrangement 4,
then the conditions to be met by the exporting Party shall be those specified by theimporting Party. The exporting Party may agree to meet the importing Party's
conditions, without affecting the result of the process set out in Implementing
Arrangement 8.
5.

Implementing Arrangement 4 may list :(a)those individual measures and/or groups of measures and/or systems
applicable to a sector or part of a sector, for which the respective
sanitary or phytosanitary measures are recognised as equivalent for
trade purposes;(b)actions to enable the assessment of equivalence to be completed inaccordance with the process set out in Implementing Arrangement 8,
and by the date indicated in Implementing Arrangement 4, or if notindicated, as specified by the importing Party; or(c)the specific guarantees related to recognition of special status provided
for Article 7.6(4); and(d)may also list those sectors, or parts of sectors, for which the Parties
apply differing sanitary or phytosanitary measures and have notconcluded the determination provided for in Paragraph 3.

6.
Unless otherwise agreed among the relevant Parties, an official sanitary or
phytosanitary certificate will be required for each consignment of animals andanimal products, plants and plant products, or other related goods intended forimport and for which equivalence has been recognised. The model attestation forsuch certificates will be prescribed in Implementing Arrangement 6. The Parties
may jointly determine principles or guidelines for certification, which shall be
included in Implementing Arrangement 6.

Article 7.8: Verification
1.
In order to maintain confidence in the effective implementation of theprovisions of this Chapter, each Party shall have the right to carry out audit andverification of the procedures of the exporting Party, which may include anassessment of all or part of the competent authorities' total control programme,
including, where appropriate:

7-5

(a)

reviews of the inspection and audit programmes; and(b) on-site checks.
These procedures shall be carried out in accordance with the provisions of
Implementing Arrangement 5.
2.
Each Party shall also have the right to carry out import checks for the
purposes of implementing sanitary and phytosanitary measures on consignments
on importation, consistent with Article 7.9, the results of which form part of theverification process.
3.

With the consent of the importing and exporting Parties, a Party may:(a)share the results and conclusions of its audit and verification procedures
and checks with non-Parties; or(b)

use the results and conclusions of the audit and verification procedures
and checks of non-Parties.

Article 7.9: Import Checks
1.
The import checks applied to imported animals and animal products, plants
and plant products, or other related goods shall be based on the risk associatedwith such importations. They shall be carried out without undue delay and with aminimum effect on trade between the Parties.
2.
The frequencies of import checks on such importations shall be madeavailable on request and where set out in Implementing Arrangement 7 shall beapplied accordingly. The Parties may amend the frequencies, within their
responsibilities, as appropriate, as a result of progress made in accordance with
Implementing Arrangement 4, or as a result of other actions or consultations
provided for in this Chapter.
3.
In the event that the import checks reveal non-conformity with the relevant
standards and/or requirements, the action taken by the importing Party should bebased on an assessment of the risk involved. Wherever possible, the importer ortheir representative shall be given access to the consignment and the opportunity
to contribute any relevant information to assist the importing Party in taking a final
decision.

7-6

Article 7.10: Notifications
1.
The Parties shall notify each other in writing through the contacts points set
out in Implementing Arrangement 1 of:(a)significant changes in health status including the presence and evolutionof diseases or pests in Implementing Arrangement 2, in a timely andappropriate manner so as to ensure continued confidence in thecompetence of the Party with respect to the management of any risks oftransmission to one of the other Parties which may arise as aconsequence;(b)scientific findings of importance with respect to diseases or pests which
are not in Implementing Arrangement 2 or new diseases or pests
without delay; and(c)any additional measures beyond the basic requirements of theirrespective sanitary or phytosanitary measures taken to control or
eradicate diseases or pests or to protect public health, and any changes
in preventive policies, including vaccination policies.

2.
In cases of serious and immediate concern with respect to human, animal orplant life or health, immediate oral notification shall be made to the contact points
and written confirmation should follow within 24 hours.
3.
Where a Party has serious concerns regarding a risk to human, animal orplant life or health, consultations regarding the situation shall, on request, takeplace as soon as possible, and in any case within 13 days unless otherwise agreed
between the Parties. Each Party shall endeavour in such situations to provide all
the information necessary to avoid a disruption in trade, and to reach a mutuallyacceptable solution.
4.
Where in the case of products subject to sanitary or phytosanitary
measures, there is non-conformity with the relevant standards and/or
requirements, the importing Party shall notify the exporting Party as soon as
possible of the non-conformity as set out in Implementing Arrangement 7.

Article 7.11: Provisional Measures
Without prejudice to Article 7.10, and in particular Article 7.10(3), any Party
may, on serious human, animal or plant life or health grounds, adopt provisional
measures necessary for the protection of human, animal or plant life or health.
These measures shall be notified within 24 hours to the other Parties and, on
request, consultations regarding the situation shall be held within 13 days unless7-7otherwise agreed by the Parties. The Parties shall take due account of any
information provided through such consultations.

Article 7.12: Exchange of Information
1.
The Parties, through the contacts points set out in Implementing
Arrangement 1, shall exchange information relevant to the implementation of this
Chapter on a uniform and systematic basis, to provide assurance, engendermutual confidence and demonstrate the efficacy of the programmes controlled.
Where appropriate, achievements of these objectives may be enhanced byexchanges of officials.
2.
The information exchange on changes in the respective sanitary or
phytosanitary measures, and other relevant information, shall include:(a)opportunity to consider proposals for changes in regulatory standards or
requirements which may affect this Chapter in advance of their
finalisation;(b)briefing on current developments affecting trade; and(c)information on the results of the verification procedures provided for in
Article 7.8.

3.
The Parties may provide for the sharing of scientific papers or data to
relevant scientific forums on sanitary or phytosanitary measures and related
matters.

Article 7.13: Technical Consultation
1.
A Party may initiate consultations with another Party with the aim ofresolving issues on the application of measures covered in this Chapter orinterpretation of the provisions of this Chapter.
2.
Where a Party requests consultations, these consultations shall take place
as soon as practicable.
3.
If a Party considers it necessary, it may request that the Committee facilitatesuch consultations. The Committee may refer the issues to an ad hoc working
group for further discussion.
The ad hoc working group may make a
recommendation to the Committee on the resolution of the issues. The Committee
shall discuss the recommendation with a view to resolving the issue without undue
delay.

7-8

4.
Such consultations are without prejudice to the rights and obligations of theParties under Chapter 15 (Dispute Settlement).

Article 7.14: Cooperation
1.
The Parties shall explore opportunities for further cooperation andcollaboration on sanitary or phytosanitary matters of mutual interest consistent withthe provisions of this Chapter.
2.
The Parties acknowledge that the provisions of Chapter 16 (StrategicPartnership) and its accompanying Implementing Arrangement relating to primaryindustry matters will be of relevance to the implementation of this Chapter.
3.
The Parties agree to cooperate together to facilitate the implementation ofthis Chapter, and in particular the development of this Chapter’s Implementing
Arrangements.

7-9

CHAPTER 8TECHNICAL BARRIERS TO TRADE

Article 8.1: Definitions
1.

For the purposes of this Chapter:equivalence of technical regulations means that one or more of the Parties
accepts that the technical regulations of another Party fulfil the legitimate
objectives of its own regulations;
regulatory authority means the authority that is responsible for preparing or
adopting technical regulations and conformity assessment procedures applicable
to goods;
technical regulations also includes standards that regulatory authorities
recognise as meeting the mandatory requirements related to performance based
regulation;
TBT Agreement means the Agreement on Technical Barriers to Trade, which ispart of the WTO Agreement.
2.
The definitions in Annex I of the TBT Agreement are incorporated into this
Chapter and shall form part of this Chapter, mutatis mutandis.

Article 8.2: Objectives
The objectives of this Chapter are to increase and facilitate trade throughfurthering the implementation of the TBT Agreement and building on the work of
APEC on standards and conformance. Wherever possible, the Parties shall aim to
reduce compliance costs by:(a)eliminating unnecessary technical barriers to trade in goods among theParties;(b)enhancing cooperation among the Parties’ regulatory agencies
responsible for standards, technical regulations and conformity
assessment procedures applicable to goods; and(c)providing a framework to address the impact of technical barriers totrade.

8-1

Article 8.3: Scope
1.
This Chapter applies to all standards, technical regulations and conformity
assessment procedures that may, directly or indirectly, affect the trade in goods
among the Parties, except as provided in Paragraphs 2 and 3.
2.
This Chapter does not apply to technical specifications prepared bygovernmental entities for production or consumption requirements of such entities
which are covered by Chapter 11 (Government Procurement).
3.
This Chapter does not apply to sanitary and phytosanitary measures which
are covered by Chapter 7 (Sanitary and Phytosanitary Measures).
4.
Nothing in this Chapter shall prevent a Party from adopting or maintaining
technical regulations or standards, in accordance with its rights and obligations
under the TBT Agreement necessary to fulfil a legitimate objective taking into
account the risks non fulfilment would create. This shall include technicalregulations necessary to ensure its national security requirements, the preventionof deceptive practices, the protection of human health or safety, animal or plant lifeor health, or the environment.

Article 8.4: Affirmation of the Agreement on Technical Barriers to Trade
The Parties affirm their existing rights and obligations with respect to eachother under the TBT Agreement.

Article 8.5: Origin
1.
This Chapter applies to all goods traded among the Parties, regardless ofthe origin of those goods.
2.
Notwithstanding Paragraph 1, a Party may give special consideration to
goods of a non-Party through the application of a technical regulation, due to theneed to avoid the introduction of costly surveillance procedures and as long as thetechnical regulation is compatible with the TBT Agreement. This shall be notified
to the other Parties through the contact points established in Article 8.11(2).

Article 8.6: Trade Facilitation
1.
The Parties shall intensify their joint work in the field of standards, technicalregulations, and conformity assessment procedures with a view to facilitating
access to each other’s market. In particular, the Parties shall seek to identify
initiatives among them that are appropriate for particular issues or sectors. Such
8-2

initiatives may include cooperation on regulatory issues, such as harmonisation orequivalence of technical regulations and standards, alignment with international
standards, reliance on a supplier's declaration of conformity, and use ofaccreditation to qualify conformity assessment bodies, as well as cooperation
through mutual recognition.
2.
Initiatives identified by the Parties shall be focused on the promotion of theuse of international standards, transparency, exchange of information and reducing
compliance costs.

Article 8.7: International Standards
1.
The Parties shall use international standards, or the relevant parts ofinternational standards, as a basis for their technical regulations and related
conformity assessment procedures where relevant international standards exist or
their completion is imminent, except when such international standards or theirrelevant parts are ineffective or inappropriate to fulfil legitimate objectives.
2.
In this respect, the Parties shall apply the decision of the WTO Committee
on Technical Barriers to Trade set out in G/TBT/1/Rev.8, 23 May 2002, Section IX"Decision of the Committee on Principles for the Development of International
Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex
3 of the Agreement".
3.
The Parties shall cooperate with each other, where appropriate, in thecontext of their participation in international standardising bodies to ensure thatinternational standards developed within such bodies that are likely to become abasis for technical regulations are trade facilitating and do not create unnecessary
obstacles to international trade.

Article 8.8: Equivalency of Technical Regulations
1.
Each Party shall give positive consideration to accepting as equivalent,
technical regulations of another Party, even if these regulations differ from its own,
provided that those technical regulations produce outcomes that are equivalent tothose produced by its own technical regulations in meeting its legitimate objectives
and achieving the same level of protection.
2.
A Party shall, upon the request of another Party, explain the reasons why it
has not accepted a technical regulation of that Party as equivalent.

8-3Article 8.9: Conformity Assessment Procedures
1.
The Parties recognise that a broad range of mechanisms exist to facilitate
the acceptance of conformity assessment results, including:(a)the importing Party’s reliance on a supplier’s declaration of conformity;(b)

unilateral recognition by one Party of the results of conformity
assessments performed in another Party’s territory;(c)cooperative arrangements among conformity assessment bodies fromeach other’s territory;(d)mutual recognition of conformity assessment procedures conducted bybodies located in the territory of another Party;(e)accreditation procedures for qualifying conformity assessment bodies;(f)government designation of conformity assessment bodies; and(g)devising solutions to increase administrative efficiency, that avoid
duplication and are cost effective.

2.
The Parties shall intensify their exchange of information on the range of
mechanisms to facilitate the acceptance of conformity assessment results.
3.
The Parties shall seek to ensure that conformity assessment procedures
applied among them facilitate trade by ensuring that they are no more restrictive
than is necessary to provide an importing Party with confidence that products
conform with the applicable technical regulations, taking into account the risk that
non-conformity would create.
4.
Before accepting the results of a conformity assessment procedure, and toenhance confidence in the continued reliability of each other’s conformity
assessment results, the Parties may consult on such matters as the technicalcompetence of the conformity assessment bodies involved, as appropriate.
5.
A Party shall, on the request of another Party, explain its reasons for not
accepting the results of a conformity assessment procedure performed in the
territory of that other Party.
6.
Each Party shall accredit, approve, license, or otherwise recognise
conformity assessment bodies in the territory of another Party on terms no lessfavourable than those it accords to conformity assessment bodies in its territory. If
a Party accredits, approves, licenses or otherwise recognises a body assessing
conformity with a particular technical regulation or standard in its territory and it
8-4

refuses to accredit, approve, license, or otherwise recognise a body assessing
conformity with that technical regulation or standard in the territory of anotherParty, it shall, on request, explain the reasons for its refusal.
7.
Where a Party declines a request from another Party to enter into
negotiations on facilitating recognition in its territory of the results of conformity
assessment procedures conducted by bodies in the territory of either of the otherParties, it shall, on request, explain its reasons.

Article 8.10: Transparency
1.
In order to enhance the opportunity for persons to provide meaningfulcomments, a Party publishing a notice under Article 2.9 or 5.6 of the TBTAgreement shall:(a)include in the notice a statement describing the objective of the proposal
and the rationale for the approach the Party is proposing; and(b)transmit the proposal electronically to the other Parties through theenquiry point established under Article 10 of the TBT Agreement at thesame time as it notifies WTO Members of the proposal pursuant to the
TBT Agreement.

2.
Each Party should allow at least 60 days from the transmission underParagraph 1(b) for persons and the other Parties to make comments in writing on
the proposal.
3.
Where a Party makes a notification under Article 2.10 or 5.7 of the TBTAgreement, it shall at the same time transmit the notification to the other Parties,
electronically, through the enquiry point referred to in Paragraph 1(b).

Article 8.11: Technical Cooperation and Committee on Technical Barriers to
Trade
1.
The Parties hereby establish the Committee on Technical Barriers to Trade(the Committee), which shall comprise officials from the contact points of theParties.
2.
The Parties shall provide each other with the name of the governmentalorganisation that shall be their contact point and the contact details of relevant
officials on that organisation, including telephone, fax, email and other relevant
details. The Parties shall notify each other promptly of any change of their contact
points or any amendments to the details of the relevant officials.

8-5

3.
The Committee shall have the responsibility for implementing andmonitoring the operation of this Chapter, and in particular:(a)identifying priority sectors for enhanced cooperation;(b)establishing work programmes in priority areas;(c)coordinating participation in work programmes with interested persons
and organisations in the territories of the Parties;(d)monitoring the work programmes;(e)addressing any issue that a Party may raise related to the development,
adoption, application or enforcement of technical regulations andconformity assessment procedures;(f)enhancing cooperation in the development and improvement oftechnical regulations and conformity assessment procedures;(g)where appropriate, facilitating sectoral cooperation among governmental
and non-governmental accreditation agencies and conformity
assessment bodies in the Parties’ territories;(h)exchanging information on developments in non-governmental, regionaland multilateral forums engaged in activities related to standardisation,technical regulations and conformity assessment procedures;(i)taking any other steps the Parties consider will assist them in
implementing the TBT Agreement and in facilitating trade in goods
among them;(j)reviewing this Chapter in light of any developments under the TBTAgreement, and developing recommendations for amendments to this
Chapter in light of those developments; and(k)reporting to the Commission on the implementation of this Chapter, as it
considers appropriate.

4.
A Party shall, on request, give favourable consideration to any sectorspecific proposal another Party makes for further technical cooperation under this
Chapter.
5.
The Committee shall conduct meetings to promote and monitor the
implementation and administration of this Chapter at least once a year, or more
frequently on the request of one of the Parties, via teleconference, videoconference or any other means as mutually determined by the Parties.
6.
Where a Party takes a measure to manage an immediate risk that it
considers goods covered by an Annex to this Chapter may pose to health, safetyor the environment, it shall notify the measure and the reasons for the imposition of
the measure to the other Parties, with the time limit as specified in theimplementing arrangements.
8-6

Article 8.12: Technical Consultations
1.
A Party may initiate technical consultations with another Party through therespective contact points with the aim of resolving any matter arising under this
Chapter.
2.
Unless the Parties mutually determine otherwise, the Parties shall holdtechnical consultations within a reasonable period of time from the request fortechnical consultations by email, teleconference, video-conference, or through anyother means, as mutually determined by the Parties. The Parties shall, from time
to time, stipulate in writing the length of time that they consider to be reasonable.
3.
If a Party considers it necessary, it may request that the Committee facilitatesuch technical consultations.
4.
Such technical consultations are without prejudice to the rights andobligations of the Parties under Chapter 15 (Dispute Settlement).

Article 8.13: Annexes and Implementing Arrangements
1.
The Parties, in accordance with Chapter 17 (Administrative and Institutional
Provisions), may conclude Annexes to this Chapter setting out agreed principles
and procedures relating to technical regulations and conformity assessment
applicable to trade among them.
2.
The Parties, in accordance with Article 8.11, may develop Implementing
Arrangements setting out details for the implementation of Annexes referred to in
Paragraph 1, or arrangements made in relation to any work programmes
established under Article 8.11.
3.
The Parties shall seek to incorporate any existing arrangements concerningtechnical regulations and conformity assessment procedures that are specificallyapplicable to trade between two or more of the Parties into Annexes and
Implementing Arrangements.

8-7

CHAPTER 9COMPETITION POLICY
Article 9.1: Objectives
1.
The Parties recognise the strategic importance of creating and maintaining
open and competitive markets that promote economic efficiency and consumer
welfare.
2.
To this end each Party is committed to reducing and removing impediments
to trade and investment including through:(a)application of competition statutes to all forms of commercial activity,
including both private and public business activities; and(b)application of competition statutes in a manner that does notdiscriminate between or among economic entities, nor between origin
and destination of the production.

3.
The Parties recognise that anti-competitive business conduct may frustrate
the benefits arising from this Agreement. The Parties undertake to apply theirrespective competition laws in a manner consistent with this Chapter so as to avoid
the benefits of this Agreement in terms of the liberalisation process in goods andservices being diminished or cancelled out by anti-competitive business conduct.

Article 9.2: Competition Law and Enforcement
1.
Each Party shall adopt or maintain competition laws that proscribe anticompetitive business conduct with the objective of promoting economic efficiency
and consumer welfare.
2.
With a view to preventing distortions or restrictions on competition theParties will give particular attention to anti-competitive agreements, concerted
practices or arrangements by competitors and abusive behaviour resulting fromsingle or joint dominant positions in a market. These practices refer to goods andservices and may be carried out by any enterprise irrespective of the ownership ofthat enterprise.
3.
Competition law shall apply to all commercial activities. However, eachParty may exempt specific measures or sectors from the application of theirgeneral competition law, provided that such exemptions are transparent andundertaken on the grounds of public policy or public interest. Exemptions of theParties as at the date of entry into force of this Agreement are set out in Annex 9.A.
9-1

Those exemptions shall not have the objective of negatively affecting trade among
the Parties. Should any Party be considering additions to its list of exemptions thatit considers may affect trade with another Party, it will inform that Party, which may
request consultations under Article 9.5. The Commission shall implement any
additions to or removals from the list of exemptions through an Implementing
Arrangement.
4.
Each Party shall establish or maintain a competition authority responsible forthe enforcement of its measures to proscribe anti-competitive business conduct.
The enforcement policy of each Party’s competition authority shall not discriminate
on the basis of the nationality of the subjects of their proceedings to the extent thatthey carry on a business within the territory of that Party.
5.
Each Party shall ensure that a person subject to the imposition of a sanction
or remedy for violation of competition laws is provided with the opportunity to beheard and present evidence, and to seek review of such a sanction or remedy in adomestic court or independent tribunal.

Article 9.3: Cooperation
1.
The Parties agree to cooperate and coordinate in the area of competition
policy by exchanging information on the development of competition policy. The
Parties also recognise the importance of cooperation and coordination between
their respective competition authorities to further effective competition law
enforcement in their respective jurisdictions. Accordingly, the Parties shallcooperate on issues of competition law enforcement, including notification,
consultation and exchanges of information.
2.
The Parties through their respective competition authorities will seek acooperation agreement after the date of the entry into force of this Agreement.

Article 9.4: Notifications
1.
Each Party shall notify the other Parties of an enforcement activity regarding
an anti-competitive business conduct if it:(a)considers that the enforcement activity is liable to substantially affectanother Party's important interests;(b)relates to restrictions on competition which are liable to have a direct
and substantial effect in the territory of another Party; or(c)concerns anti-competitive acts taking place principally in the territory of
another Party.
9-2

2.
Notification shall take place at an early stage of the procedure, provided that
this is not contrary to the Parties’ competition laws and does not affect any
investigation being carried out.

Article 9.5: Consultations and Exchange of Information
1.
At the request of any Party, the Parties shall consult on any issue adversely
affecting the competitive interests for trade or investment among them within theobjectives of this Chapter.
2.
Information or documents exchanged between the Parties in relation to any
consultation conducted pursuant to the provisions of this Chapter shall be kept
confidential. No Party shall, except to comply with its domestic legal requirements,
release or disclose such information or documents to any person without thewritten consent of the Party that provided such information or documents. Where
the disclosure of such information or documents is necessary to comply with thedomestic legal requirements of a Party, that Party shall notify the other Parties
before such disclosure is made. The Parties may agree to the public release of
information that they do not consider confidential.

Article 9.6: Public enterprises and enterprises entrusted with special or
exclusive rights, including designated monopolies
1.
Nothing in this Chapter prevents a Party from designating or maintaining
public or private monopolies according to their respective laws.
2.
With regard to public enterprises and enterprises to which special or
exclusive rights have been granted, the Parties shall ensure that, following the dateof entry into force of this Agreement, no measure is adopted or maintained that
distorts trade in goods or services among the Parties, which is contrary to thisAgreement and contrary to the Parties’ interests, and that such enterprises shall be
subject to the rules of competition insofar as the application of such rules does not
obstruct the performance, in law or in fact, of the particular tasks assigned to them.

Article 9.7: Dispute Settlement1.
Nothing in this Chapter permits a Party to challenge any decision made by acompetition authority of another Party in enforcing the applicable competition laws
and regulations.
2.
No Party shall have recourse to any dispute settlement procedures under
this Agreement for any issue arising from or relating to this Chapter.
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Annex 9.A

This Annex lists exemptions from the application of competition law to allcommercial activities in accordance with Article 9.2 and which may affect thebenefits arising from this Agreement. It does not include exemptions from theapplication of competition law that are within the scope of other Chapters of thisAgreement.

New ZealandSpecific exemptions from New Zealand Commerce Act
Pharmaceuticals subsidies by Pharmac (Section 53 of New Zealand Public Healthand Disability Act 2000) – The Act exempts certain agreements relating to thepurchase and subsidising of pharmaceuticals from Part II of the Commerce Act(restrictive trade practices).
Export arrangements (Section 44(1)(g)) - "Export arrangements" that relate
exclusively to the export of goods from New Zealand or exclusively to the supply ofservices wholly outside New Zealand are exempt from the Commerce Act (Part II
on restrictive trade practices), under conditions of due notification to the CommerceCommission.
Agricultural Producer Boards – Limited exemptions from Part II of the Commerce
Act (restrictive trade practices) are contained in the Meat Board Act 2004 and the
Pork Industry Board Act 1997. These exemptions relate to arrangements forsetting levies by the Boards for the purpose of funding their industry-good activities(e.g. market promotion and research). In the case of the Meat Board, theexemption extends to the Board’s administration of export tariff quota
arrangements.

Singapore
1.

Provision of ordinary letter and postcard services by licensed and regulated
entities.

2.

Supply of piped potable water.

3.

Supply of wastewater management services, including the collection,
treatment and disposal of wastewater.

4.

Public Transport:
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a. Supply of scheduled bus services by any person licensed andregulated under the Public Transport Council Act (Cap. 259B);
b. Supply of rail services by any person licensed and regulated under
the Rapid Transit Systems Act (Cap. 263A).
5.

Cargo terminal operations by a person licensed and regulated under the
Maritime and Port Authority of Singapore Act (Cap. 170A).

6.

Clearing and exchanging of articles undertaken by the Automated Clearing
House (ACH) established under the Banking (Clearing House) Regulations(Cap. 19, Rg 1), and activities of the Singapore Clearing Houses
Association (SCHA) in relation to its activities regarding the ACH.

7.

Mergers and acquisitions (M&As) approved under any written law or any
code of practice issued under any written law relating to competition, andM&As relating to any of the above activities/sectors.

9-5

CHAPTER 10
INTELLECTUAL PROPERTY

Article 10.1: Definitions
For the purposes of this Chapter:
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual
Property Rights, which is part of the WTO Agreement;
Intellectual property refers to all categories of intellectual property that are thesubject of Sections 1 through 7 of Part II of the TRIPS Agreement namely:
copyright and related rights; trade marks; geographical indications; industrial
designs; patents; layout designs (topographies) of integrated circuits; protection ofundisclosed information.1

Article 10.2: Intellectual Property Principles
1.
The Parties recognise the importance of intellectual property in promoting
economic and social development, particularly in the new digital economy,
technological innovation and trade.
2.
The Parties recognise the need to achieve a balance between the rights ofright holders and the legitimate interests of users and the community with regard toprotected subject matter.
3.
The Parties are committed to the maintenance of intellectual property rights
regimes and systems that seek to:

1(a)facilitate international trade, economic and social development throughthe dissemination of ideas, technology and creative works;(b)provide certainty for right-holders and users of intellectual property overthe protection and enforcement of intellectual property rights; and(c)facilitate the enforcement of intellectual property rights with the view,inter alia, to eliminate trade in goods infringing intellectual property
rights.

For the purpose of this Chapter “intellectual property” also includes the protection of plantvarieties.
10-1Article 10.3: General Provisions
1.
The Parties affirm their existing rights and obligations with respect to eachother under the TRIPS Agreement and any other multilateral agreement relating tointellectual property to which they are party. To this end, nothing in this Chapter
shall derogate from existing rights and obligations that Parties have to each other
under the TRIPS Agreement or other multilateral intellectual property agreements.
2.
Nothing in this Chapter shall prevent a Party from adopting appropriate
measures to prevent the abuse of intellectual property rights by right holders or the
resort to practices that unreasonably restrain trade or adversely affect theinternational transfer of technology, provided that such measures are consistent
with this Agreement. In particular, nothing in this Chapter shall prevent a Party
from adopting measures necessary to prevent anti-competitive practices that may
result from the abuse of intellectual property rights.
3.
Subject to each Party’s international obligations the Parties affirm that they
may:
(a)

provide for the international exhaustion of intellectual property rights;(b)establish that provisions in standard form non-negotiated licenses for
products do not prevent consumers from exercising the limitations andexceptions recognised in domestic intellectual property laws;(c)establish provisions to facilitate the exercise of permitted acts where
technological measures have been applied; and(d)establish appropriate measures to protect traditional knowledge.

4.
The Parties shall provide for reproduction rights and communication to the
public rights to copyright owners and phonogram producers that are consistent with
the World Intellectual Property Organization Copyright Treaty (WCT) and the WorldIntellectual Property Organization Performances and Phonograms Treaty (WPPT).
The Parties shall provide performers' rights consistent with the TRIPS Agreement.
The Parties may establish limitations and exceptions in their domestic laws as
acceptable under the Berne Convention for the Protection of Literary and Artistic
Works (1971), the TRIPS Agreement, the WCT and the WPPT. These provisions
shall be understood to permit Parties to devise new exceptions and limitations thatare appropriate in the digital environment.
5.
Subject to their obligations under the TRIPS Agreement, each Party may
limit the rights of the performers and producers of phonograms and broadcasting
entities of the other Party to the rights its persons are accorded within thejurisdiction of the other Party.
10-2Article 10.4: Trade Marks
1.
Each Party shall afford an opportunity for interested parties to oppose theapplication of a trade mark and request cancellation of a registered trade mark.
2.
In relation to trade marks, Parties are encouraged to classify goods andservices according to the classification of the Nice Agreement Concerning theInternational Classification of Goods and Services for the Purposes of theRegistration of Marks (1979).

Article 10.5: Geographical Indications
1.
The terms listed in Annex 10.A are recognised as geographical indications
for wines and spirits in the respective Party, within the meaning of paragraph 1 of
Article 22 of the TRIPS Agreement. Subject to domestic laws,2 in a manner that is
consistent with the TRIPS Agreement, such terms will be protected as
geographical indications in the territories of the other Parties.
2.
At the request of a Party, the Commission may decide to add or remove
geographical indications from Annex 10.A.

Article 10.6: Country Names
The Parties shall provide the legal means for interested parties to prevent
commercial use of country names of the Parties in relation to goods in a manner
which misleads consumers as to the origin of such goods.

Article 10.7: Cooperation
The Parties agree to cooperate, consistent with the principles set out in
Article 10.2. Such cooperation may include, inter alia:(a)the notification of contact points for the enforcement of intellectual
property rights;(b)exchange of information relating to developments in intellectual property
policy in their respective agencies. Such developments may include,2

For greater certainty, the Parties acknowledge that geographical indications will be recognised andprotected in Brunei Darussalam, Chile, New Zealand and Singapore only to the extent permitted by
and according to the terms and conditions set out in their respective domestic laws.
10-3

but are not limited to, the implementation of appropriate limitations andexceptions under copyright law and the implementation of measuresconcerning the appropriate protection of digital rights management
information;(c)exchange of information on the implementation of intellectual propertysystems, aimed at promoting the efficient registration of intellectual
property rights;(d)promotion of the development of contacts and cooperation among theirrespective agencies, including enforcement agencies, educational
institutions and other organisations with an interest in the field ofintellectual property rights;(e)policy dialogue on initiatives on intellectual property in multilateral andregional forums;(f)exchange of information and cooperation on appropriate initiatives topromote awareness of intellectual property rights and systems; and(g)such other activities and initiatives as may be mutually determinedamong the Parties.

10-4

Annex 10.A
Lists of Geographical Indications
List of Geographical Indications from Chile
WINES

Name of Appellation
Valle de Aconcagua
Alhué
Valle del Bío Bío
Buin
Valle del Cachapoal
Valle de Casablanca
Cauquenes
Chillán
Chimbarongo
Valle del Choapa
CoelemuValle de Colchagua
Valle de Copiapó
Valle de Curicó
Region de Aconcagua
Region de Atacama
Region de Coquimbo
Valle del ClaroRegion del Sur
Region del Valle Central
Valle del Elqui
Valle del Huasco
IllapelIsla de Maipo
Valle del Itata
Valle de Leyda
Valle del Limarí
Linares
Valle del Loncomilla
Valle del Lontué
Lolol
Valle del Maipo
Maria Pinto
Valle del Marga-Marga
Valle del Maule
Marchigue
Valle del Malleco
Melipilla
MolinaMonte Patria
Mulchén
Nancagua
10-5

OvallePaiguano
Pajarete
Palmilla
Panquehue
ParralPencahue
Peralillo
Peumo
PirquePortezuelo
Puente Alto
Punitaqui
Quillón
Rancagua
Valle del Rapel
Rauco
Rengo
Requínoa
Río Hurtado
RomeralSagrada Familia
Valle de San Antonio
San Juan
Salamanca
San Clemente
San Fernando
San Javier
San Rafael
Santa Cruz
Santiago
Talagante
Talca
Valle del Teno
Valle delTutuvén
Traiguén
VicuñaVilla Alegre
Vino Asoleado
YumbelSPIRITS

Name of Apellation

Country

Pisco

Chile

10-6

CHAPTER 11
GOVERNMENT PROCUREMENT

Article 11.1: Definitions
For the purposes of this Chapter:build-operate-transfer contract and public works concession contract mean
any contractual arrangement the primary purpose of which is to provide for theconstruction or rehabilitation of physical infrastructure, plant, buildings, facilities orother government-owned works and under which, as consideration for a supplier's
execution of a contractual arrangement, the entity grants to the supplier, for a
specified period of time, temporary ownership or a right to control and operate, anddemand payment for the use of such works for the duration of the contract;
entity means an entity listed in Annex 11.A;
government procurement or procurement means the process by which entities
purchase goods and services;
measures relating to government procurement means any law, regulation,
policy, or procedure of general application relating to government procurement;
offsets means conditions used to encouraged local development or improve thebalance of payments accounts by means of domestic content, licensing oftechnology, investment requirements, counter-trade or similar requirements;
publish means to disseminate information in an electronic or paper medium that is
distributed widely and is readily accessible to the general public;
supplier means a natural or legal person of a Party that provides or could provide
goods or services to an entity;
technical specification means a tendering requirement that:(a)sets out the characteristics of:(i)goods to be procured, such as quality, performance, safety anddimensions, or the process and methods for their production, or(ii)

services to be procured, or the processes or methods for theirprovision, including any applicable administrative provisions;

11-1

(b)

addresses terminology, symbols, packaging, marking or labelling
requirements, as they apply to a good or service; or(c)sets out conformity assessment procedures prescribed by an entity.

Article 11.2: Objectives
The objectives of this Chapter are to recognise the importance of conducting
government procurement in accordance with the fundamental principles oftransparency, value for money, open and effective competition, fair dealing,accountability and due process, and non-discrimination.

Article 11.3: Scope
1.
This Chapter applies to measures adopted or maintained by a Party relating
to government procurement by any contractual means, including purchase andrental or lease, with or without an option to buy, build-operate-transfer contracts
and public works concessions contracts:

2.

(a)

by entities listed in Annex 11.A, and their successors other than thosesubsequently corporatised, commercialised or privatised;(b)in which the contract has a value not less than the relevant thresholdconverted into respective currencies as set out in Annex 11.C; and(c)subject to any other conditions specified in the Annexes.

This Chapter does not apply to:(a)the purchase or acquisition of goods and services by an entity of a Party
from another entity of that Party, except where tenders are called, inwhich case this Chapter shall apply;(b)

non-contractual agreements, or any form of assistance to persons or
governmental authorities, including foreign assistance, grants, loans,equity infusions, fiscal incentives, subsidies, guarantees, cooperative
agreements, sponsorship arrangements and governmental provision of
goods and services;(c)purchases funded by international grants, loans or other assistance,
where the provision of such assistance is subject to conditions
inconsistent with the provisions of this Chapter;

11-2

(d)

procurement of goods and services (including construction) outside theterritory of the procuring Party, for consumption outside the territory of
the procuring Party;(e)acquisition of fiscal agency or depository services, liquidation andmanagement services for regulated financial institutions, and sale anddistribution services for government debt; or(f)hiring of government employees or other long-term staff and personnel,
and related employment measures.

3.
Each Party shall ensure that its entities shall not prepare, design orotherwise structure or divide, at any stage of the procurement, any procurement inorder to avoid the obligations of this Chapter.

Article 11.4: National Treatment and Non-Discrimination
1.
With respect to any measures regarding government procurement coveredby this Chapter, each Party shall grant to goods, services and suppliers of theother Parties treatment no less favourable than that accorded by it to domestic
goods, services and suppliers.
2.
With respect to any measures regarding government procurement coveredby this Chapter, no Party shall allow its entities to:(a)treat a locally established supplier less favourably than another locallyestablished supplier on the basis of the degree of foreign affiliation to, or
ownership by a person of, another Party; or(b)discriminate against a locally established supplier on the basis that the
goods or services offered by that supplier are goods or services ofanother Party.

3.
A Party shall not discriminate in favour of any enterprise, whether or not the
Party is a shareholder in that enterprise.
4.
This Article shall not apply to measures concerning customs duties andcharges of any kind imposed on or in connection with importation, the method oflevying such duties and charges, other import regulations, or to measures affecting
trade in services other than measures specifically governing procurement coveredby this Chapter.

11-3

Article 11.5: Rules of Origin
For the sole purpose of determining customs duties applicable to goods
imported for purposes of government procurement, the Parties shall apply thesame rules of origin that are used to determine customs duties applicable toimports of goods for other purposes.

Article 11.6: Prohibition of Offsets
Each Party shall ensure that its entities do not consider, seek or impose
offsets at any stage of a procurement.

Article 11.7: Non-Disclosure of Information
1.
The Parties, their entities and their review authorities shall not, except to theextent required by law, disclose confidential information that would prejudicelegitimate commercial interests of a particular supplier or might prejudice faircompetition between suppliers without the written authorisation of the supplier thatprovided the information.
2.
Nothing in this Chapter shall be construed as requiring a Party or its entities
to disclose confidential information the disclosure of which would impede law
enforcement or otherwise be contrary to the public interest.

Article 11.8: Publication of Information on Procurement Measures
Each Party shall promptly publish:(a)

its measures relating to government procurement covered by this
Chapter; and(b)

any modifications to such measures in the same manner as the original
publication.

Article 11.9: Technical Specifications
1.
Each Party shall ensure that its entities do not prepare, adopt or apply any
technical specification with the purpose or the effect of creating unnecessary
obstacles to trade among the Parties.
2.

Any technical specifications prescribed by an entity shall, where appropriate:

11-4

(a)

be specified in terms of performance and functional requirements, rather
than design or descriptive characteristics; and(b)

be based on international standards, where applicable, or otherwise on
national technical regulations, recognised national standards, or building
codes.

3.
Each Party shall ensure that its entities do not prescribe technicalspecifications that require or refer to a particular trademark or trade name, patent,
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 "or equivalent" are included in the tender
documentation.
4.
Each Party shall ensure that an entity shall not seek or accept advice to be
used in the preparation or adoption of any technical specification for a specificprocurement from a person that may have a commercial interest in thatprocurement, if to do so would prejudice fair competition.

Article 11.10: Valuation of Contracts
In calculating the value of contracts for the purposes of implementing this
Chapter entities shall base their valuation on the maximum total estimated value ofthe procurement over its entire duration including optional purchases, premiums,
fees, commissions, interests and revenue streams or other forms of remuneration
provided for in such contracts.

Article 11.11: Tendering Procedures
Except as provided for in Article 11.18 entities shall award contracts bymeans of open tendering procedures, in the course of which any interested
supplier may submit a tender or apply to meet conditions for participation in a
procurement.1

Article 11.12: Notice of Intended Procurement
1.
For each procurement covered by this Chapter, entities shall publish inadvance a notice of intended procurement inviting interested suppliers to submit a

1

The Parties understand that further procurements under contracts, which are awarded consistently
with this Chapter, in particular Article 11.10, that provide that goods and services will be available toentities on the same terms and conditions as the original contract are considered consistent withthis Chapter.
11-5

tender or apply to meet conditions for participation in the procurement, except asprovided for in Article 11.18.
2.
The information in each notice of intended procurement shall include a
description of the intended procurement; any conditions that suppliers must fulfil toparticipate in the procurement, including the time limits for submission of tenders;and contact details for obtaining of all relevant documents.
3.
Entities shall publish the notices in a timely manner through means which
offer the widest possible and non-discriminatory access to the interested suppliersof the Parties. These means shall be accessible free of charge, during the entire
period established for tendering, through a single electronic point of accessspecified in Annex 11.B.
4.
Where an entity, during the course of a procurement, modifies the criteria
referred to in the notice of intended procurement, it shall publish or transmit all
such modifications in writing:(a)to all suppliers that are participating in the procurement at the time thecriteria are modified, if the identities of such suppliers are known, and in
all other cases, in the same manner as the original information wastransmitted; and(b)in adequate time to allow such suppliers to modify and resubmit theirtenders, as appropriate.

5.
Each notice of intended procurement under Paragraph 1 shall be publishedsufficiently in advance to provide interested suppliers of all Parties with areasonable period of time in light of the nature, circumstances and complexity ofthe procurement, to obtain the full tender documentation and to prepare and submit
responsive tenders by the closing date, or to apply for participation in the
procurement where applicable.
6.
Notwithstanding Paragraph 5, entities shall provide no less than 10 days
between the date on which the notice of intended procurement is published and thefinal date for the submission of tenders.

Article 11.13: Tender Documentation1.
Tender documentation provided to suppliers shall contain all informationnecessary to permit them to prepare and submit responsive tenders, including theessential requirements and evaluation criteria for the award of the procurement
contract.

11-6

2.
Where contracting entities do not offer direct access to the entire tender
documents and any supporting documents by electronic means, entities shallpromptly make available the tender documentation at the request of any supplier of
the Parties.
3.
An entity shall endeavour to reply promptly to any reasonable request for
explanation or relevant information made by a supplier, provided that suchinformation does not give that supplier an advantage over its competitors in theprocedure for the award of the contract. The explanation or information provided toa supplier may be provided to all suppliers that are invited to tender.
4.
Where an entity, during the course of a procurement, modifies the essential
requirements and evaluation criteria of the tender documentation, it shall publish ortransmit all such modifications in writing:(a)to all suppliers who have requested tender documentation at the time
the criteria are modified, and in the same manner the original
information was transmitted; and(b)in adequate time to allow such suppliers to modify and resubmit theirtenders, as appropriate.

Article 11.14: Awarding of Contracts
1.
The Parties shall ensure that its entities receive, open and evaluate alltenders under procedures that guarantee the fairness and impartiality of the
procurement process.
2.
To be considered for award, a tender must, at the time of opening, conformto the essential requirements of the notice of intended procurement or tender
documentation and be submitted by a supplier who complies with the conditions forparticipation.
3.
Unless an entity determines that it is not in the public interest to award acontract, it shall award the contract to the supplier that has been determined to be
fully capable of undertaking the contract and whose tender is determined to offer
the best value for money or be the most advantageous in terms of the essential
requirements and evaluation criteria set forth in the tender documentation.
4.
An entity shall not cancel a procurement covered by this Chapter, or
terminate or modify awarded contracts in order to circumvent the requirements ofthis Chapter.

11-7

Article 11.15: Post-Award Information
1.
Entities shall promptly publish or inform suppliers that have submitted atender of the contract award decision.
2.
Entities shall, on request from an unsuccessful supplier, promptly provide
pertinent information concerning reasons for the rejection of its tender or the
relative advantages of the tender the entity selected.
3.
Entities shall, promptly after the award of a contract for a procurement
covered by this Chapter, publish a notice containing at least the following
information:(a)the name and address of the successful supplier;(b)a description of the goods or services supplied; and(c)the value of the contract award.

Article 11.16: Conditions for Participation
1.
Where an entity requires suppliers to satisfy registration, qualification, or any
other conditions before being permitted to participate in a procurement, each Party
shall ensure that a notice inviting suppliers to apply for registration, qualification ordemonstration of the suppliers' satisfaction of any other conditions for participation
is published sufficiently in advance for interested suppliers to prepare and submit
responsive applications and for entities to evaluate and make their determinations
based on such applications.
2.
Entities shall consider for a particular procurement those suppliers ofanother Party that request to participate in the procurement and that are not yet
registered or qualified, provided there is sufficient time to complete the registrationor qualification procedures before the award of the contract.
3.
Any conditions for participation in the procurement, including financial
guarantees, technical qualifications and information necessary for establishing thefinancial, commercial and technical capacity of suppliers, as well as the verificationof qualifications, shall be limited to those which are essential to ensure the firm's
capability to fulfil the contract in question. The financial, commercial and technicalcapacity of a supplier shall be judged both on the basis of that supplier's global
business activity and its activity in the territory of the procuring entity, taking due
account of the legal relationship between the supply organisations.
4.
Nothing in this Article shall preclude an entity from excluding a supplier froma procurement on grounds such as bankruptcy, liquidation or insolvency, false
11-8

declarations relating to a procurement, or significant deficiency in the performanceof any obligation under a prior contract.

Article 11.17: Lists of Registered or Qualified Suppliers
1.
An entity may establish for continuing use a list of suppliers registered or
qualified to participate in procurements. A current updated list of registered or
qualified suppliers shall be publicly available. The entity shall ensure that suppliers
may apply for participation in the list of registered or qualified suppliers at any time,
and that all qualifying applicants are included within a reasonable period of time,taking into account the conditions for participation and the need for verification.
Where an entity requires suppliers to qualify for such a list before being permitted
to participate in a procurement, and a supplier that has not previously satisfied
such requirements or conditions submits an application, the entity shall promptly
start the registration or qualification procedures and shall allow such supplier toparticipate in the procurement, provided there is sufficient time to complete theregistration or procurement procedures within the time period established for theaward.
2.
The entity shall publish annually or otherwise make available continuously inelectronic form a notice inviting interested suppliers to apply for inclusion on thelist. The notice shall include:(a)a description of the goods and services for which the list of suppliers
may be used; and(b)the conditions to be satisfied by suppliers for inclusion on the list ofregistered or qualified suppliers.

3.
Entities shall notify qualified suppliers of the termination of, or of theirremoval from a list of registered or qualified suppliers and state the reason for thisaction.

Article 11.18: Exceptions to Open Tendering
1.
Provided that the tendering procedure is not used to avoid competition or toprotect domestic suppliers, entities may award contracts by means other than open
tendering procedures in any of the following circumstances:(a)where, in response to a prior notice, invitation to participate, or invitation
to tender under open tendering procedures(i)no tenders were submitted,

11-9

(ii)

no tenders were submitted that conform to the essential
requirements in the tender documentation, or(iii)

no suppliers satisfied the conditions for participation, andthe entity does not substantially modify the essential requirements of the
procurement in the contract as awarded;(b)

where, for works of art, or for reasons connected with the protection of
exclusive rights, such as patents or copyrights, or where there is anabsence of competition for technical reasons, the goods or services canbe supplied only by a particular supplier and no reasonable alternative
or substitute exists;(c)

for additional deliveries by the original supplier which are intended either
as replacement parts, extensions or continuing services for or upgradesof existing equipment, software, services or installations, where achange of supplier would compel the procuring entity to procure goods
or services not meeting requirements of interchangeability with existing
equipment, software, services or installations, or conditions under
original supplier warranties;(d)for goods purchased on a commodity market;(e)when an entity procures a prototype or a first good or service that isdeveloped at its request in the course of, and for, a particular contract
for research, experiment, study or original development. When suchcontracts have been fulfilled, subsequent procurements of such goods
or services shall be subject to the principles and procedures laid down inthis Chapter;(f)when additional construction services which were not included in theinitial contract but which were within the objectives of the original tender
documentation have, due to unforeseeable circumstances, become
necessary to complete the construction services described therein,
provided that the total value of contracts awarded for additional
construction services does not exceed 50 percent of the amount of themain contract;(g)

in so far as it is strictly necessary where, for reasons of extreme urgency
brought about by events unforeseeable by the entity, the goods orservices could not be obtained in time by means of an open tendering
procedure, and the use of such procedure would result in serious injury
to the entity, the entity's programme responsibilities or the Party. For
purposes of this Subparagraph, lack of advance planning by an entity or

11-10

its concerns relating to the amount of funds available to it do notconstitute unforeseeable events;(h)for purchases made under exceptionally advantageous conditions that
only arise in the very short term, including public auction or unusual
disposals, such as those resulting from liquidation, bankruptcy orreceivership. This provision is not intended to cover routine purchasesfrom regular suppliers; or(i)in the case of a contract awarded to the winner of a design contest
provided that the contest has been organised in a manner which isconsistent with the principles of this Chapter and that the contest is
judged by an independent jury with a view to a design contract being
awarded to the winner.

2.
The Parties shall ensure that, whenever it is necessary for entities to resort
to a procedure other than open tendering procedures based on the circumstances
set forth in Paragraph 1, the entities shall maintain a record or prepare a written
report providing specific justification for the contract.

Article 11.19: Ensuring Integrity in Procurement Practices
Each Party shall ensure that criminal or administrative penalties exist toaddress corruption in its government procurement, and that its entities have inplace policies and procedures to eliminate any potential conflict of interest on thepart of those engaged in or having influence over a procurement.

Article 11.20: Domestic Review of Supplier Complaints
1.
Each Party shall ensure that its entities accord impartial and timely
consideration to any complaints from suppliers regarding an alleged breach of
measures implementing this Chapter arising in the context of a procurement inwhich they have, or have had, an interest. Where appropriate, a Party may
encourage suppliers to seek clarification from its entities with a view to facilitating
the resolution of any such complaints.
2.
Each Party shall provide suppliers of any one of the other Parties with nondiscriminatory, timely, transparent and effective access to an administrative or
judicial body competent to hear or review complaints of alleged breaches of the
procuring Party’s laws, regulations, procedures and practices regarding
procurement in the context of procurements in which they have, or have had, aninterest.

11-11

3.
Each Party shall make information on complaint mechanisms generally
available.
4.
Compensation for any breach of measures implementing this Chapter may
be limited to the costs for tender preparation reasonably incurred by the supplierfor the purpose of the procurement.

Article 11.21:
Procurement

Encouraging

Use

of

Electronic

Communicationsin

1.
The Parties shall seek to provide opportunities for government procurement
to be undertaken through the Internet or a comparable computer-based
telecommunications network.
2.
In order to facilitate commercial opportunities for their suppliers under this
Chapter, each Party shall maintain a single electronic portal for access, tocomprehensive information on government procurement supply opportunities in its
territory, and information on measures relating to government procurement shall beavailable. The contact point or points from whom suppliers can obtain information
on government procurement shall either be specified in Annex 11.B, or be set out
in the information on the single electronic portal.
3.
The Parties shall encourage, to the extent possible, the use of electronicmeans for the provision of tender documents and receipt of tenders.
4.
The Parties shall endeavour to ensure policies and procedures for the useof electronic means in procurement are adopted that:(a)protect documentation from unauthorised and undetected alteration; and(b)provide appropriate levels of security for data on, and passing through,the procuring entity’s network.

5.
Each Party shall encourage its entities to publish as early as possible in thefiscal year information regarding the entities' indicative procurement plans in theelectronic portal referred to in Paragraph 2.

Article 11.22: Exceptions
1.
Nothing in this Chapter shall be construed to prevent any Party from taking
any action or not disclosing any information which it considers necessary for theprotection of its essential security interests relating to the procurement of arms,
ammunition or war materials, or to procurement indispensable for national security
or for national defence purposes.
11-12

2.
Subject to the requirement that such measures are not applied in a mannerthat would constitute a means of arbitrary or unjustifiable discrimination between
Parties where the same conditions prevail or a disguised restriction on trade
between the Parties, nothing in this Chapter shall be construed to prevent a Party
from adopting or maintaining measures:(a)necessary to protect public morals, order, or safety;(b)necessary to protect human, animal or plant life or health;(c)necessary to protect intellectual property; or(d)relating to goods or services of handicapped persons, of philanthropic or
not for profit institutions, or of prison labour.

3.
The Parties understand that Subparagraph 2(b) includes environmental
measures necessary to protect human, animal or plant life or health.

Article 11.23: Modifications and Rectifications of Annexes
1.
A Party may modify its coverage under this Chapter in conformity with
Article 17.2 (Functions of the Commission), provided that it:(a)notifies the other Parties of the modification; and(b)provides the other Parties, within 30 days following the date of such
notification, appropriate compensatory adjustments to its coverage inorder to maintain a level of coverage comparable to that existing prior tothe modification.

2.
Notwithstanding Subparagraph 1(b), no compensatory adjustments shall be
provided to the other Parties where the modification by a Party of its coverage
under this Chapter concerns:(a)the situation where the business or commercial operations or functionsof any of its entities or part thereof are constituted or established as anenterprise with a legal entity separate and distinct from the governmentof a Party, regardless of whether or not the government holds any
shares or interest in such a legal entity; or(b)rectifications of a purely formal nature and minor amendments to Annex
11.A or Annex 11.B, including those under Subparagraph (a), madethrough an Implementing Arrangement in accordance with Article 17.2
(Functions of the Commission).
11-13

Annex 11.A

List of Entities and Covered Goods and Services
CHILE
A.

List of Entities
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Presidencia de la República (Office of the President of the Republic)
Ministerio de Interior (Ministry of the Interior)
Ministerio de Relaciones Exteriores (Ministry of Foreign Affairs)
Ministerio de Defensa Nacional (Ministry of National Defense)
Ministerio de Hacienda (Ministry of Finance)
Ministerio Secretaría General de la Presidencia (Ministry of the General
Secretariat of the President’s Office)Ministerio Secretaría General de Gobierno (Ministry of the General
Secretariat of Government)
Ministerio de Economía, Fomento, Reconstrucción y Energía (Ministryof Economic Affairs, Development, Reconstruction and Energy)
Ministerio de Minería (Ministry of Mining)
Ministerio de Planificación y Cooperación (Ministry of Planning andCooperation)
Ministerio de Educación (Ministry of Education)
Ministerio de Justicia (Ministry of Justice)
Ministerio de Trabajo y Previsión Social (Ministry of Labour and Social
Welfare)Ministerio de Obras Públicas (Ministry of Public Works)
Ministerio de Transporte y Telecomunicaciones (Ministry of Transport
and Telecommunications)
Ministerio de Salud (Ministry of Health)
Ministerio de la Vivienda y Urbanismo (Ministry of Housing and Urban
Planning)
Ministerio de Bienes Nacionales (Ministry of National Assets)
Ministerio de Agricultura (Ministry of Agriculture)
Ministerio Servicio Nacional de la Mujer (Ministry of the National Bureau
for Women)

Gobiernos Regionales (Regional Governments)
Intendencia I Región(Intendancy Region I)
Gobernación de Arica
11-14

(Governor’s Office – Arica)
Gobernación de Parinacota(Governor’s Office - Parinacota)
Gobernación de Iquique(Governor’s Office - Iquique)Intendencia II Región(Intendancy Region II)
Gobernación de Antofagasta(Governor’s Office - Antofagasta)
Gobernación de El Loa(Governor’s Office - El Loa)
Gobernación de Tocopilla(Governor’s Office - Tocopilla)
Intendencia III Región(Intendancy Region III)
Gobernación de Chañaral(Governor’s Office - Chañaral)
Gobernación de Copiapó(Governor’s Office - Copiapó)
Intendencia IV Región(Intendancy Region IV)
Gobernación de Huasco(Governor’s Office - Huasco)
Gobernación de El Elqui(Governor’s Office - El Elqui)
Gobernación de Limarí(Governor’s Office - Limarí)
Gobernación de Choapa(Governor’s Office - Choapa)
Intendencia V Región(Intendancy Region V)
Gobernación de Petorca(Governor’s Office - Petorca)
Gobernación de Valparaíso(Governor’s Office - Valparaiso)
Gobernación de San Felipe de Aconcagua(Governor’s Office - San Felipe de Aconcagua)
Gobernación de Los Andes(Governor’s Office - Los Andes)
Gobernación de Quillota(Governor’s Office - Quillota)
Gobernación de San Antonio(Governor’s Office - San Antonio)
Gobernación de Isla de Pascua(Governor’s Office - Isla de Pascua)
Intendencia VI Región
11-15

(Intendancy Region VI)
Gobernación de Cachapoal(Governor’s Office - Cachapoal)
Gobernación de Colchagua(Governor’s Office - Colchagua)
Gobernación de Cardenal Caro
(Governor’s Office - Cardenal Caro)
Intendencia VII Región(Intendancy Region VII)
Gobernación de Curicó(Governor’s Office - Curicó)
Gobernación de Talca(Governor’s Office - Talca)
Gobernación de Linares(Governor’s Office - Linares)
Gobernación de Cauquenes(Governor’s Office - Cauquenes)
Intendencia VIII Región(Intendancy Region VIII)
Gobernación de Ñuble(Governor’s Office - Ñuble)
Gobernación de Bío-Bío(Governor’s Office - Bío-Bío)
Gobernación de Concepción(Governor’s Office - Concepción)
Gobernación de Arauco(Governor’s Office - Arauco)
Intendencia IX Región(Intendancy Region IX)
Gobernación de Malleco(Governor’s Office - Malleco)
Gobernación de Cautín(Governor’s Office - Cautín)
Intendencia X Región(Intendancy Region X)
Gobernación de Valdivia(Governor’s Office - Valdivia)
Gobernación de Osorno(Governor’s Office - Osorno)
Gobernación de Llanquihue(Governor’s Office - Llanquihue)
Gobernación de Chiloé(Governor’s Office - Chiloé)
Gobernación de Palena(Governor’s Office - Palena)
Intendencia XI Región
11-16

(Intendancy Region XI)
Gobernación de Coihaique(Governor’s Office - Coihaique)
Gobernación de Aysén(Governor’s Office - Aysén)
Gobernación de General Carrera(Governor’s Office - General Carrera)
Intendencia XII Región(Intendancy Region XII)
Gobernación de Capitán Prat
(Governor’s Office - Capitán Prat)
Gobernación de Ultima Esperanza(Governor’s Office - Ultima Esperanza)
Gobernación de Magallanes(Governor’s Office - Magallanes)
Gobernación de Tierra del Fuego(Governor’s Office - Tierra del Fuego)
Gobernación de Antártica Chilena(Governor’s Office - Antártica Chilena)
Intendencia Región Metropolitana(Intendancy Metropolitan Region)
Gobernación de Chacabuco(Governor’s Office - Chacabuco)
Gobernación de Cordillera(Governor’s Office - Cordillera)
Gobernación de Maipo(Governor’s Office - Maipo)
Gobernación de Talagante(Governor’s Office - Talagante)
Gobernación de Melipilla(Governor’s Office - Melipilla)
Gobernación de Santiago(Governor’s Office - Santiago)

Note to Section A:
Chapter 11 shall not apply to any procurement made by a listed entity on
behalf of a non-listed entity.

B.

Covered Goods and Services

1.

Goods
Chapter 11 applies to all goods procured by the entities listed in Section A.
11-17

2.

Services
Chapter 11 applies to all services procured by the entities listed in
Section A, except all classes of financial services (as elaborated in the
Common Classification System), which are excluded.

3.

Construction Services
Chapter 11 applies to all construction services procured by the entities listed
in Section A.

11-18

NEW ZEALAND
A.

List of Entities
Archives New Zealand
Crown Law Office
Department of Building and Housing
Department of Child, Youth and Family Services
Department of Conservation
Department of Corrections
Department of Internal Affairs
Department of Labour
Department of the Prime Minister and Cabinet
Education Review Office
Government Communications Security Bureau
Inland Revenue Department
Land Information New Zealand
Ministry of Agriculture and Forestry
Ministry for Culture and Heritage
Ministry of Defence
Ministry of Economic Development
Ministry of Education
Ministry for the Environment
Ministry of Fisheries
Ministry of Foreign Affairs and Trade
Ministry of Health
Ministry of Justice
Ministry of Maori Development
Ministry of Pacific Island Affairs
Ministry of Research, Science and Technology
Ministry of Social Development
Ministry of Transport
Ministry of Women's Affairs
National Library of New Zealand
New Zealand Customs Service
New Zealand Defence Force
New Zealand Police
Serious Fraud OfficeState Services Commission
Statistics New Zealand
The Treasury

Note to Section A:
Chapter 11 shall not apply to any procurement made by a listed entity on
behalf of a non-listed entity.
11-19

B.

Covered Goods and Services

1.

Goods
Chapter 11 applies to all goods procured by the entities listed in Section A.

2.

Services
Chapter 11 applies to all services procured by the entities listed in
Section A, except the following:

3.

(a)

procurement of research and development services;2(b)

any procurement in respect of contracts for construction,
refurbishment or furnishing of chanceries abroad;3 and(c)procurement of public health, education and welfare services.4

Construction Services
Chapter 11 applies to all construction services procured by the entities listed
in Section A, except for procurement covered by Paragraph 2(b) above.

2

As defined in WTO document MTN.GNS/W/120 (CPC 851-853).
As regards construction services, this refers to WTO document MTN.GNS/W/120 sector heading“Construction and Related Engineering Services”.
4
Refers to procurement, for provision to the public, of services classified in WTO document
MTN.GNS/W/120 under the sector headings “Educational Services” and “Health Related and Social
Services”, and CPC item 913.
11-20
3

SINGAPORE
A.

List of Entities
Auditor-General's Office
Attorney-General's Chambers
Cabinet OfficeIstanaJudicature
Ministry of Transport
Ministry of Community Development and Sports
Ministry of Education
Ministry of Environment
Ministry of Finance
Ministry of Foreign Affairs
Ministry of Health
Ministry of Home Affairs
Ministry of Information, Communications and the Arts
Ministry of Manpower
Ministry of Law
Ministry of National Development
Ministry of Trade and Industry
Parliament
Presidential Councils
Prime Minister's OfficePublic Service Commission
Ministry of DefenceThis Agreement will generally apply to purchases by the Singapore Ministry of
Defence of the following Federal Supply Classification (FSC) categories of theUnited States of America (others being excluded) subject to the Government ofSingapore's determinations under the provisions of Article 11.22.

FSC

Description

22
23
24
25
26
29
30
31
32
34

Railway Equipment
Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles
Tractors
Vehicular Equipment Components
Tires and Tubes
Engine Accessories
Mechanical Power Transmission Equipment
Bearings
Woodworking Machinery and Equipment
Metalworking Machinery
11-21

35
36
37
38
39
40
41
42
43
44
45
46
47
48
51
52
53
54
55
56
61
62
63
65
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
83
84
85
87

Service and Trade Equipment
Special Industry Machinery
Agricultural Machinery and Equipment
Construction, Mining, Excavating and Highway Maintenance
Equipment
Materials Handling Equipment
Rope, Cable, Chain and Fittings
Refrigeration, Air Conditioning and Air Circulating Equipment
Fire Fighting, Rescue and Safety Equipment
Pumps and Compressors
Furnace, Steam Plant and Drying Equipment
Plumbing, Heating and Sanitation Equipment
Water Purification and Sewage Treatment Equipment
Pipe, Tubing, Hose and Fittings
ValvesHandtools
Measuring Tools
Hardware and Abrasives
Prefabricated Structures and Scaffolding
Lumber, Millwork, Plywood and Veneer
Construction and Building Materials
Electric Wire, and Power and Distribution Equipment
Lighting, Fixtures and Lamps
Alarm, Signal and Security Detection Systems
Medical, Dental and Veterinary Equipment and Supplies
Photographic Equipment
Chemicals and Chemical Products
Training Aids and Devices
General Purpose Automatic Data Processing Equipment,
Software,Supplies and Support Equipment
Furniture
Household and Commercial Furnishings and Appliances
Food Preparation and Serving Equipment
Office Machines, Text Processing Systems and Visible Record
Equipment
Office Supplies and Devices
Books, Maps and other Publications
Musical Instruments, Phonographs and Home-Type Radios
Recreational and Athletic Equipment
Cleaning Equipment and Supplies
Brushes, Paints, Sealers and Adhesives
Containers, Packaging and Packing Supplies
Textiles, Leather, Furs, Apparel and Shoe Findings, Tents and Flags
Clothing, Individual Equipment, and Insignia
Toiletries
Agricultural Supplies
11-22

88
89
91
93
94
95
96
99

Live Animals
Subsistence
Fuels, Lubricants, Oils and Waxes
Non-metallic Fabricated Materials
Non-metallic Crude Materials
Metal Bars, Sheets and Shapes
Ores, Minerals, and their Primary Products
Miscellaneous

Note to Section A:
Chapter 11 shall not apply to any procurement made by a listed entity on
behalf of a non-listed entity.
B.

Covered Goods and Services

1.

Goods
Chapter 11 applies to all goods procured by the entities listed in Section A.

2.

Services (Other than construction services)
The following services are contained in WTO document MTN.GNS/W/120 are
offered (others being excluded):
CPC
862
8671
865
874
641-643
74710
7472
843
844
932
84100
84210
87905
7523
7523
7523
7523

Description
Accounting, Auditing and Book-keeping Services
Architectural Services
Management Consulting Services
Building-Cleaning Services
Hotels and Restaurants (incl. catering)
Travel Agencies and Tour Operators
Tourist Guide Services
Data Processing Services
Database Services
Veterinary Services
Consultancy Services Related to the Installation of Computer
Hardware
Systems and Software Consulting Services
Translation and Interpretation Services
Electronic Mail
Voice Mail
On-Line Information and Database Retrieval
Electronic Data Interchange
11-2396112
96113
96121
96122
96311
8672
7512
-

C.

Motion Picture or Video Tape Production Services
Motion Picture or Video Tape Distribution Services
Motion Picture Projection Services
Video Tape Projection Services
Library Services
Engineering Services
Courier Services
Biotechnology Services
Exhibition Services
Commercial Market ResearchInterior Design Services, Excluding Architecture
Professional, Advisory and Consulting Services Relating toAgriculture, Forestry, Fishing and Mining, Including Oilfield
Services

Construction Services
The following construction services in the sense of Division 51 of the CPC as
contained in WTO document MTN.GNS/W/120 are offered (others being
excluded):
List of construction services offered:
CPC

Description

512
513
514, 516
517
511, 515, 518

General construction work for buildings
General construction work for civil engineering
Installation and assembly work
Building completion and finishing work
Others

Notes to Section B:
1.

Chapter 11 shall not apply to any procurement in respect of:(a)construction contracts for chanceries abroad and headquarters
buildings made by the Ministry of Foreign Affairs; and(b)contracts made by the Internal Security Department, Criminal
Investigation Department, Security Branch and Central Narcotics Bureau of
the Ministry of Home Affairs as well as procurement that have security
considerations made by the Ministry.

2.
The offer regarding services and construction services is subject to thelimitations and conditions specified in the Government of Singapore’s offer under
the GATS negotiations.
11-24

Annex 11.B

Single Electronic Point of Access

For Chile:
http://www.chilecompra.cl

For New Zealand:
http://www.gets.govt.nz

For Singapore:
http://www.gebiz.gov.sg

Contact Point

For Brunei Darussalam:State Tender Board (STB)
Ministry of FinanceCommonwealth Drive
Brunei Darussalam BB 3910
For New Zealand:
Regulatory and Competition Policy Branch
Ministry of Economic Development
Level 8, 33 Bowen Street
PO Box 1473
Wellington, New Zealand

For Singapore:
Expenditure & Procurement Policies Unit
Ministry of Finance
100, High Street
Singapore 179434
11-25

Annex 11.C
Thresholds

Goods

Threshold : SDR 50,000

Services

Threshold : SDR 50,000

Construction

Threshold : SDR 5,000,000

Thresholds shall be converted to the respective national currencies in accordancewith the following provisions:1.
Each Party shall calculate and publish the value of the thresholds under this
Chapter expressed in the corresponding national currency. These calculations will
be based on the conversion rates published by the IMF in its monthly “International
Financial Statistics”.
2.
The conversion rates shall be the average of the daily values of therespective national currency in terms of the SDR over the two years preceding
1 September, 1 October or 1 November of the year prior to the thresholds innational currency becoming effective which will be from 1 January.
3.
Thresholds expressed in national currencies will be fixed for two years, ie
calendar years, for all Parties.

11-26

CHAPTER 12
TRADE IN SERVICES

Article 12.1: Definitions
For the purposes of this Chapter:
commercial presence means any type of business or professional establishment,
including through:(a)the constitution, acquisition or maintenance of a legal person; or(b)the creation or maintenance of a branch or a representative office, within
the territory of a Party for the purpose of supplying a service;enterprise means an enterprise as defined in Article 2.1 (Definitions of General
Application), and a branch of an enterprise;measures adopted or maintained by a Party means measures adopted or
maintained by:(a)central or local governments and authorities; and(b)

non-governmental bodies in the exercise of powers delegated by central
or local governments or authorities.

Such measures include measures affecting:(a)the production, distribution, marketing, sale, and delivery of a service;(b)

the purchase or use of, or payment for, a service;(c)the access to and use of distribution, transport, or telecommunications
networks and services in connection with the supply of a service;(d)the presence, including commercial presence in its territory of a service
supplier of another Party; and(e)the provision of a bond or other form of financial security as a condition
for the supply of a service;service supplied in the exercise of governmental authority means any service
which is supplied neither on a commercial basis nor in competition with one ormore service suppliers;12-1

service supplier of a Party means a person of a Party that seeks to supply or
supplies a service;specialty air services means any non-transportation air services, such as aerial
fire fighting, sightseeing, spraying, surveying, mapping, photography, parachute
jumping, glider towing, and helicopter-lift for logging and construction, and otherairborne agricultural, industrial, and inspection services;
state enterprise means an enterprise that is owned, or controlled throughownership interests, by a Party;
trade in services or supply of services means the supply of a service:(a)from the territory of one Party into the territory of another Party (“crossborder mode”);(b)in the territory of one Party by a person of that Party to a person ofanother Party (“consumption abroad mode”);(c)by a service supplier of one Party, through commercial presence in the
territory of another Party (“commercial presence mode”); or(d)by a national of a Party in the territory of another Party (“presence of
natural persons mode”).

Article 12.2: Objectives
The objectives of this Chapter are to facilitate expansion of trade in services
on a mutually advantageous basis, under conditions of transparency andprogressive liberalisation, while recognising the rights of Parties to regulate
services, including to introduce new regulations, and the role of governments inproviding and funding public services, giving due respect to national policy
objectives including where these reflect local circumstances.

Article 12.3: Scope
1.
This Chapter shall apply to measures adopted or maintained by a Party
affecting trade in services.
2.

This Chapter shall not apply to:(a)financial services as defined in Annex 12.A;

12-2

(b)

government procurement, which means any law, regulation, policy, or
procedure of general application governing the procurement bygovernmental agencies of services purchased for governmental
purposes and not with a view to commercial resale or with a view to use
in the supply of services for commercial sale;1(c)services supplied in the exercise of governmental authority;(d)subsidies or grants provided by a Party or a state enterprise,2 or any
conditions attached to the receipt or continued receipt of such subsidies
or grants, whether or not such subsidies or grants are offeredexclusively to domestic services, service consumers or service
suppliers;(e)measures affecting natural persons seeking access to the employment
market of a Party; or(f)measures regarding citizenship, nationality, residence or employment on
a permanent basis.

3.
This Chapter shall not apply to air transport services, whether scheduled or
non-scheduled, or to related services in support of air services,3 other than thefollowing:(a)aircraft repair and maintenance services during which an aircraft iswithdrawn from service;(b)

the selling and marketing of air transport services;(c)computer reservation system services;(d)

speciality air services; and(e)international air transportation services as set out in the Multilateral
Agreement on the Liberalisation of International Air Transportation(MALIAT), and, to the extent that there are any inconsistencies between
this Agreement and those of the MALIAT, the rights and obligations
under the MALIAT at any given time shall prevail.

4.
Nothing in this Chapter shall prevent a Party from applying measures toregulate the entry of natural persons of another Party into, or their temporary stayin, its territory, including those measures necessary to protect the integrity of, and1

In the event of any inconsistency between this Chapter and Chapter 11 (Government
Procurement) the latter Chapter shall prevail to the extent of the inconsistency.
2This includes government supported loans, guarantees, and insurance.
3
For example, ground handling services.
12-3

to ensure the orderly movement of natural persons across, its borders, provided
that such measures are not applied in such a manner as to nullify or impair the
benefits accruing to that other Party under the terms of this Chapter. The sole factof requiring a visa for natural persons of certain countries and not for those ofothers shall not be regarded as nullifying benefits under this Chapter.

Article 12.4: National Treatment
Each Party shall accord to services and service suppliers of another Party,
treatment no less favourable than that it accords, in like circumstances, to its own
services and service suppliers.

Article 12.5: Most-Favoured-Nation Treatment
Each Party shall accord to services and service suppliers of another Party
treatment no less favourable than that it accords, in like circumstances, to services
and service suppliers of a non-Party.

Article 12.6: Market Access
No Party shall, either on the basis of a regional subdivision or on the basisof its entire territory, adopt or maintain:

4(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 formof numerical quotas 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 of an economic needs
test;4(d)limitations on the total number of natural persons that may be employed
in a particular service sector or that a service supplier may employ andwho are necessary for, and directly related to, the supply of a specificservice in the form of numerical quotas or the requirement of an
economic needs test; andThis paragraph does not cover measures of a Party which limit inputs for the supply of services.
12-4

(e)

measures which restrict or require specific types of legal entity or joint
venture through which a service supplier may supply a service.

Article 12.7: Local Presence
No Party may require a service supplier of another Party to establish or
maintain a representative office or any form of enterprise, or to be resident, in its
territory as a condition for the supply of a service.

Article 12.8: Non-conforming Measures
1.

Articles 12.4, 12.5, 12.6 and 12.7 shall not apply to:(a)any existing non-conforming measure that is maintained by a Party at:(i)the central level of government, as set out by that Party in its
Schedule to Annex III, or(ii)

a local level of government;(b)the continuation or prompt renewal of any non-conforming measurereferred to in Subparagraph (a); or(c)an amendment to any non-conforming measure referred to in
Subparagraph (a) to the extent that the amendment does not decrease
the conformity of the measure, as it existed immediately before theamendment, with Articles 12.4, 12.5, 12.6 and 12.7.

2.
Articles 12.4, 12.5, 12.6 and 12.7 do not apply to any measure that a Party
adopts or maintains with respect to sectors, sub-sectors, or activities, as set out in
its Schedule to Annex IV.

Article 12.9: Review
The Parties shall consult within two years of entry into force of thisAgreement and at least every three years thereafter, or as otherwise agreed, toreview the implementation of this Chapter and consider other trade in services
issues of mutual interest, with a view to the progressive liberalisation of the trade inservices among them on a mutually advantageous basis.

12-5Article 12.10: Domestic Regulation
1.
Each Party shall ensure that all measures of general application affecting
trade in services are administered in a reasonable, objective and impartial manner.
2.
With a view to ensuring that measures relating to qualification requirements
and procedures, technical standards, and licensing requirements do not constituteunnecessary barriers to trade in services, each Party shall ensure that any suchmeasures that it adopts or maintains are:(a)based on objective and transparent criteria, such as competence andthe ability to supply the service;(b)

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

3.
In determining whether a Party is in conformity with its obligations underParagraph 2, account shall be taken of international standards of relevantinternational organisations applied by that Party.
4.
Where a Party requires authorisation for the supply of a service, thecompetent authorities of that Party shall, within a reasonable period of time after
the submission of an application considered complete under domestic laws andregulations, inform the applicant of the decision concerning the application. At therequest of the applicant, the competent authorities of the Party shall provide,
without undue delay, information concerning the status of the application. Thisobligation shall not apply to authorisation requirements that are within the scope of
Article 12.8(2).
5.
If the results of the negotiations related to Article VI:4 of GATS (or the
results of any similar negotiations undertaken in other multilateral forums in which
the Parties participate) enter into effect, the Parties shall jointly review these resultswith a view to their incorporation in this Agreement. The Parties agree tocoordinate on such negotiations as appropriate.

Article 12.11: Professional Qualifications and Registration
1.
For the purposes of the fulfilment, in whole or in part, of its standards orcriteria for the authorisation, licensing, or certification of service suppliers, andsubject to the requirements of Paragraph 4, a Party may recognise the education

12-6

or experience obtained, requirements met, or licenses or certifications granted in aparticular Party or non-Party.
2.
Where a Party recognises, autonomously or by agreement or arrangement,
the education or experience obtained, requirements met, or licenses orcertifications granted in the territory of a non-Party, nothing in Article 12.5 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
territory of another Party.
3.
A Party that is a party to an agreement or arrangement of the type referred
to in Paragraph 1, whether existing or future, shall afford adequate opportunity for
another Party, upon request, to negotiate its accession to such an agreement or
arrangement or to negotiate comparable ones with it. Where a Party accords
recognition autonomously, it shall afford adequate opportunity for another Party todemonstrate that education, experience, licenses, or certifications obtained or
requirements met in that other Party’s territory should be recognised.
4.
A Party shall not accord recognition in a manner which would constitute ameans of discrimination between countries in the application of its standards orcriteria for the authorisation, licensing, or certification of service suppliers, or a
disguised restriction on trade in services.
5.
As set out in Annex 12.B, the Parties agree to facilitate the establishment of
dialogue among their regulators and/or relevant industry bodies with a view to theachievement of early outcomes on recognition of professional qualifications and/or
professional registration.
Such outcomes may be achieved throughharmonisation, recognition of regulatory outcomes, recognition of professional
qualifications and professional registration awarded by one Party as a means ofcomplying with the regulatory requirements of another Party whether accorded
unilaterally or by mutual arrangement, including where appropriate through an
Implementing Arrangement.
6.
The initial priority areas for work on professional qualification andprofessional recognition requirements are engineers, architects, geologists,
geophysicists, planners, and accountants. The priority areas and the recognition
outcomes achieved on priorities shall be reviewed within the time periods set out in
Article 12.9.

Article 12.12: Denial of Benefits
Subject to prior notification and consultation, a Party may deny the benefitsof this Chapter to:

12-7

(a)

service suppliers of another Party where the service is being supplied byan enterprise that is owned or controlled by persons of a non-Party andthe enterprise has no substantive business operations in the territory of
any Party; or(b)service suppliers of another Party where the service is being supplied byan enterprise that is owned or controlled by persons of the denying
Party and the enterprise has no substantive business operations in the
territory of any Party.

Article 12.13: Transparency
1.
Each Party shall publish promptly or otherwise make publicly available
international agreements pertaining to or affecting trade in services to which it is asignatory.
2.
Each Party shall respond promptly to all requests by any other Party forspecific information on any of its measures of general application which pertain toor affect the operation of this Chapter or international agreements within themeaning of Paragraph 1.
3.
Each Party shall also designate one or more enquiry points to provide
specific information to the other Parties, upon request, on all such matters.

Article 12.14: Subsidies
Notwithstanding Article 12.3, the Parties shall review the issue of disciplines
on subsidies related to trade in services in the light of any disciplines agreed under
Article XV of GATS with a view to their incorporation into this Agreement.

Article 12.15: Payments and transfers
Except as provided in Annex 12.C, each Party shall permit all payments andtransfers for current transactions and capital movements, with regard to trade inservices.

12-8Annex 12.A
Financial service means any service of a financial nature. Financial services
include all insurance and insurance-related services, and all banking and otherfinancial services (excluding insurance), as well as services incidental or auxiliary
to a service of a financial nature. Without limiting this definition, financial services
include the following activities:
Insurance and insurance-related services(a)direct insurance (including co-insurance):(i) life,(ii) non-life;(b)reinsurance and retrocession;(c)insurance intermediation, such as brokerage and agency;(d)services auxiliary to insurance, such as consultancy, actuarial, risk
assessment, and claim settlement services.

Banking and other financial services (excluding insurance)(e)

acceptance of deposits and other repayable funds from the public;(f)lending of all types, including consumer credit, mortgage credit, factoring
and financing of commercial transactions;(g)financial leasing;(h)all payment and money transmission services, including credit, charge
and debit cards, travellers cheques, and bankers drafts;(i)

guarantees and commitments;(j)trading for own account or for account of customers, whether on an
exchange, in an over-the-counter market, or otherwise, the following:(i)money market instruments (including cheques, bills, certificates ofdeposits,(ii)

foreign exchange,(iii)

derivative products including, futures and options,
12-9

(iv) exchange rate and interest rate instruments, including products
such as swaps, forward rate agreements,(v)

transferable securities, or(vi) other negotiable instruments and financial assets, including bullion;(k)participation in issues of all kinds of securities, including underwriting
and placement as agent (whether publicly or privately) and provision ofservices related to such issues;(l)money broking;(m) asset management, such as cash or portfolio management, all forms ofcollective investment management, pension fund management,
custodial, depository, and trust services;(n)settlement and clearing services for financial assets, including
securities, derivative products, and other negotiable instruments;(o)provision and transfer of financial information, and financial dataprocessing and related software by suppliers of other financial services;
and

(p)

advisory, intermediation, and other auxiliary financial services on all theactivities listed in Subparagraphs (e) through (o), including credit
reference and analysis, investment and portfolio research and advice,advice on acquisitions and on corporate restructuring and strategy.

12-10

Annex 12.B
Professional Services

Development of Professional Standards
1.
Professional services means services, the provision of which requires
specialised post secondary education, or equivalent training or experience, and forwhich the right to practice is granted or restricted by a Party, but does not include
services provided by trades persons or vessel and aircraft crew members.
2.
The Parties shall encourage the relevant bodies in their respective territories
to develop mutually acceptable standards and criteria for licensing and certificationof professional service providers and to provide recommendations on mutual
recognition to the Commission.
3.
The standards and criteria referred to in Paragraph 2 may be developedwith regard to the following matters:(a)education - accreditation of schools or academic programs;(b)

examinations - qualifying examinations for licensing, including
alternative methods of assessment such as oral examinations andinterviews;(c)experience - length and nature of experience required for licensing;(d)conduct and ethics - standards of professional conduct and the nature of
disciplinary action for non-conformity with those standards;(e)professional development and re-certification - continuing education andongoing requirements to maintain professional certification;(f)scope of practice - extent of, or limitations on, permissible activities;(g)local knowledge - requirements for knowledge of such matters as local
laws, regulations, language, geography, or climate; and(h)consumer protection - alternatives to residency requirements, including
bonding, professional liability insurance, and client restitution funds, toprovide for the protection of consumers.

4.
On receipt of a recommendation referred to in Paragraph 2, the Commission
shall review the recommendation within a reasonable time to determine whether it
is consistent with this Agreement. Based on the Commission’s review, each Party
12-11

shall encourage its respective competent authorities, where appropriate, toimplement the recommendation within a mutually agreed time.

Temporary Licensing
5.
Where the Parties agree, each Party shall encourage the relevant bodies in
its territory to develop procedures for the temporary licensing of professional
service providers of the other Party.

Review
6.
Subject to Article 12.11(6), the Commission shall review the implementationof this Annex. The Commission shall include within the scope of its review any
differences in regulatory approaches between the Parties. Among other issues, aParty may raise issues connected with the development of international standardsof relevant international organisations related to professional services.5

5The term “relevant international organisations” refers to international bodies whose membership is
open to the relevant bodies of at least two Parties.
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Annex 12.C
Payments and Transfers
ChileWith respect to its obligations under Article 12.15 (Payments and Transfers), Chile
reserves:
1.
The right, without prejudice to Paragraph 3 of this Annex, to maintainexisting requirements that transfers from Chile of proceeds from the sale of all or
any part of an investment of an investor of a Party6 or from the partial or complete
liquidation of the investment may not take place until a period not to exceed:(a)in the case of an investment made pursuant to Decree Law 600 Foreign
Investment Statute (Decreto Ley 600, Estatuto de la Inversion
Extranjera), one year has elapsed from the date of transfer to Chile; or(b)

in the case of an investment made pursuant to Law 18.657 Foreign
Capital Investment Fund Law (Ley 18.657, Ley Sobre Fondo deInversiones de Capitales Extranjeros), five years have elapsed from thedate of transfer to Chile;2.
The right to adopt measures, consistent with this Annex, establishing futurespecial voluntary investment programs in addition to the general regime for foreign
investment in Chile, except that any such measures may restrict transfers from
Chile of proceeds from the sale of all or any part of an investment of an investor ofanother Party or from the partial or complete liquidation of the investment for aperiod not to exceed five years from the date of transfer to Chile; and3.
The right of the Central Bank of Chile to maintain or adopt measures inconformity with the Constitutional Organic Law of the Central Bank of Chile (Ley
Orgánica Constitucional del Banco Central de Chile, Ley 18.840 – hereinafter Law
18.840) or other legislation, in order to ensure currency stability and the normal
operation of domestic and foreign payments. For this purpose, the Central Bank ofChile is empowered to regulate the supply of money and credit in circulation andinternational credit and foreign exchange operations. The Central Bank of Chile isempowered as well to issue regulations governing monetary, credit, financial, andforeign exchange matters. Such measures include, inter alia, the establishment of
restrictions or limitations on current payments and transfers (capital movements) toor from Chile, as well as transactions related to them, such as requiring that
deposits, investments or credits from or to a foreign country, be subject to areserve requirement (“encaje”).
6

Investment of an investor of a Party, refers to a commercial presence of a service supplier of a
Party.
12-13

Notwithstanding the above, the reserve requirement that the Central Bank ofChile can apply pursuant to Article 49 No. 2 of Law 18.840, shall not exceed 30 per
cent of the amount transferred and shall not be imposed for a period which
exceeds two years.
4.
When applying measures under this Annex, Chile, as established in its
legislation, shall not discriminate between the Parties to this Agreement and any
non-Party with respect to transactions of the same nature.

12-14

Annex 12.D
DL 600Chile

1.
It is understood that this Chapter does not limit the right of the Foreign
Investment Committee to regulate the terms and conditions of any investment
contract under the Foreign Investment Statute, Decree Law 600. Furthermore, it isalso understood that the Foreign Investment Committee is not obliged to enter into
investment contracts.
2.
For greater certainty, commercial presence established in Chile under theterms and conditions set out in an investment contract shall be subject to the rights
and obligations of this Chapter from the date of transfer pursuant to the investment
contract. Execution of an investment contract under DL 600 by a service supplierof another Party does not create any right on the part of the service supplier toengage in particular activities in Chile.

12-15

CHAPTER 13
TEMPORARY ENTRY

Article 13.1: Definitions
For the purposes of this Chapter:business person means a natural person who has the nationality of a Party
according to Annex 2.A, who is engaged in trade in goods or supply of services;
immigration measure means any law, regulation, policy or procedure affecting theentry and stay of foreign nationals;
temporary entry means the entry into the territory of a Party by a business personof the other Party without the intent to establish permanent residence.

Article 13.2: Objectives
1.
The objectives of this Chapter are to facilitate the temporary entry ofbusiness persons of any Party engaged in trade in goods or supply of services
among the Parties through streamlined, transparent immigration clearance
procedures for temporary entry, while at the same time ensuring border security
and protecting the domestic labour force and permanent employment in the
territories of the Parties.
2.
The Parties affirm their voluntary commitments established in the APEC
Business Travel Card “Operating Framework”.

Article 13.3: Scope
1.
This Chapter does not apply to measures affecting natural persons seeking
access to the employment market of a Party, nor shall it apply to measures
regarding citizenship, nationality, residence or employment on a permanent basis.
2.
In respect of business persons seeking entry under Chapter 12 (Trade inServices), the Parties affirm their rights and obligations under GATS, in particular
the Annex on Movement of Natural Persons Supplying Services under the
Agreement, regarding each Parties’ specific commitments relating to movement of
natural persons.

13-1

Article 13.4: Exchange of Information
1.
No later than 6 months after the entry into force of this Agreement, theParties shall exchange information on measures that affect the temporary entry ofbusiness persons through the contact points designated under Article 14.5
(Contact Points).
2.
When a Party modifies or amends an immigration measure that affects the
temporary entry of business persons, such modifications or amendments shall be
published and made available in such a manner as will enable business persons of
the other Parties to become acquainted with them.

Article 13.5: Review
1.
Two years after the entry into force of this Agreement, the Parties shallreview the rules and conditions applicable to movement of natural persons, with aview to achieving a comprehensive chapter on temporary entry, covering broad
categories of business persons, such as may be proposed by any Party.
2.
If the Parties achieve a mutually advantageous balance of rights in thenegotiations foreseen in Paragraph 1, the review will also address the scope of thedefinition of business person set out in Article 13.1.

13-2

CHAPTER 14
TRANSPARENCY

Article 14.1: Definitions
For the purposes of this Chapter:
Administrative ruling of general application means an administrative ruling orinterpretation that applies to all persons and fact situations and that is relevant to
the implementation of this Agreement but does not include:(a)a determination or ruling made in administrative or quasi-judicial
proceedings that applies to a particular person, good, or service ofanother Party in a specific case; or(b)a ruling that adjudicates with respect to a particular act or practice.

Article 14.2: Publication
1.
Each Party shall ensure that its laws, regulations, procedures, andadministrative rulings of general application with respect to any matter covered bythis Agreement are promptly published or otherwise made available1 in such amanner as to enable interested persons and Parties to become acquainted with
them.
2.

When possible, each Party shall:(a)publish in advance any measure referred to in Paragraph 1 that it
proposes to adopt; and(b)provide, where appropriate, interested persons and Parties with areasonable opportunity to comment on such proposed measures.

Article 14.3: Administrative Proceedings
With a view to administering in a consistent, impartial, and reasonable
manner all measures affecting matters covered by this Agreement, each Party
shall ensure in its administrative proceedings applying measures referred to in
Article 14.2(1) to particular persons, goods, or services of the other Parties in
specific cases that:1

Including through the Internet or in print form.
14-1

(a)

wherever possible, persons of another Party that are directly affectedby a proceeding are provided reasonable notice, in accordance withdomestic procedures, when a proceeding is initiated, including adescription of the nature of the proceeding, a statement of the legal
authority under which the proceeding is initiated, and a generaldescription of any issues in question;(b)such persons are afforded a reasonable opportunity to present facts
and arguments in support of their positions prior to any final
administrative action, when time, the nature of the proceeding, andthe public interest permit; and(c)its procedures are in accordance with domestic law.

Article 14.4: Review and Appeal
1.
Each Party shall, where warranted, establish or maintain judicial, quasijudicial, or administrative tribunals, or procedures for the purpose of the prompt
review and correction of final administrative actions regarding matters covered bythis Agreement, other than those taken for prudential reasons. Such tribunals shallbe impartial and independent of the office or authority entrusted with administrative
enforcement and shall not have any substantial interest in the outcome of thematter.
2.
Each Party shall ensure that, in any such tribunals or procedures, theParties to the proceedings are provided with the right to:(a)a reasonable opportunity to support or defend their respective
positions; and(b)a decision based on the evidence and submissions of record or,where required by domestic law, the record compiled by theadministrative authority.

3.
Each Party shall ensure, subject to appeal or further review as provided inits domestic law, that such decision shall be implemented by, and shall govern thepractice of, the offices or authorities with respect to the administrative action atissue.

Article 14.5: Contact Points
1.
Each Party shall designate a contact point or points to facilitatecommunications among the Parties on any matter covered by this Agreement.

14-2

2.
On the request of another Party, the contact points shall identify the office orofficial responsible for the matter and assist, as necessary, in facilitating
communications with the requesting Party.

Article 14.6: Notification and Provision of Information
1.
Where a Party considers that any proposed or actual measure mightmaterially affect the operation of this Agreement or otherwise substantially affectanother Party’s interests under this Agreement, that Party shall notify the interested
Party, to the extent possible, of the proposed or actual measure.
2.
On request of another Party, a Party shall provide information and respondto questions pertaining to any actual or proposed measure, whether or not that
other Party has been previously notified of that measure.
3.
Any notification, request, or information under this Article shall be conveyed
to the other Parties through their contact points.
4.
Any notification or information provided under this Article shall be without
prejudice as to whether the measure is consistent with this Agreement.

14-3

CHAPTER 15
DISPUTE SETTLEMENT

Article 15.1: Objectives
1.
The Parties shall at all times endeavour to agree on the interpretation andapplication of this Agreement, and shall make every attempt through cooperationand consultations to arrive at a mutually satisfactory resolution of any matter thatmight affect its operation.
2.
The objective of this Chapter is to provide an effective, efficient andtransparent process for consultations and settlement of disputes among the Parties
concerning their rights and obligations under this Agreement.

Article 15.2: Scope
1.
Except as otherwise provided in this Agreement, the dispute settlement
provisions of this Chapter shall apply:(a)with respect to the avoidance or settlement of all disputes between
the Parties regarding the interpretation or application of thisAgreement;(b)wherever a Party considers that an actual or proposed measure ofanother Party is or would be inconsistent with the obligations of thisAgreement or that another Party has otherwise failed to carry out its
obligations under this Agreement; or(c)wherever a Party considers that an actual or proposed measure ofanother Party causes nullification or impairment in the sense of
Annex 15.A.

2.
Subject to Article 15.3, this Chapter is without prejudice to the rights of theParties to have recourse to dispute settlement procedures available under otheragreements to which they are parties.

Article 15.3: Choice of Forum
1.
Where a dispute regarding any matter arises under this Agreement andunder another trade agreement to which the disputing Parties are party, thecomplaining Party may select the forum in which to settle the dispute.

15-1

2.
The complaining Party shall notify the other Parties in writing of its intention
to bring a dispute to a particular forum before doing so. Where a Party wishes tohave recourse to a different dispute settlement forum from that notified by anothercomplaining Party, the complaining Parties shall consult with a view to reaching
agreement on a single forum in which to settle the dispute.
3.
Once a complaining Party has initiated dispute settlement proceedings
under Article 15.6, under the WTO Agreement or any other trade agreement towhich the disputing Parties are party,1 the forum selected shall be used to the
exclusion of the others.
4.
Where there is more than one dispute on the same matter arising under thisAgreement against a Party, the disputes shall be joined.

Article 15.4: Consultations
1.
Any Party may request in writing consultations with any other Party withrespect to any actual or proposed measure of that Party that it considers
inconsistent with this Agreement or any other matter that it considers might affectthe operation of this Agreement, which shall be circulated to all Parties to thisAgreement through the Contact Points designated in accordance with Article 14.5
(Contact Points).
2.
All such requests for consultations shall set out the reasons for the request,
including the identification of the actual or proposed measure or other matter atissue and an indication of the legal basis for the complaint.
3.
The Party to which a request for consultations is made shall reply to therequest in writing within 7 days after the date of its receipt. The response to therequest for consultations shall be circulated to all Parties.
4.
Whenever a Party other than the consulting Parties considers that it has aninterest in the consultations, such Party may notify the consulting Parties within 7days after the notification of the request for consultations, of its desire to be joinedin the consultations. The Party complained against shall give positive consideration
to any request from a Party to attend consultations requested by any other Party.
5.

The Parties shall enter into consultations within a period of no more than:(a)1

15 days after the date of receipt of the request for matters concerning
perishable goods; or

For the purposes of this Article, dispute settlement proceedings under the WTO Agreement or any
other trade agreement are deemed to have been initiated upon a request by a Party for theestablishment of a panel or by referral of a matter to an arbitral tribunal.
15-2

(b)

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

6.
The consulting Parties shall make every attempt to reach a mutuallysatisfactory resolution of any matter through consultations under this Article. To
this end, the consulting Parties shall:(a)provide sufficient information to enable a full examination of how theactual or proposed measure or other matter might affect the operation
and application of this Agreement; and(b)treat any confidential information exchanged in the course of
consultations on the same basis as the Party providing the information.

7.
With a view to reaching a mutually satisfactory resolution of the matter, therequesting Party may make representations or proposals to the responding Party,
which shall give due consideration to the representations or proposals made to it.
8.
In consultations under this Article, a consulting Party may request anotherconsulting Party to make available personnel of its government agencies or otherregulatory bodies who have expertise in the matter subject to consultations.

Article 15.5: Good Offices, Conciliation and Mediation
1.
Good offices, conciliation and mediation are procedures undertaken
voluntarily if the disputing Parties so agree.
2.
Proceedings involving good offices, conciliation and mediation, and inparticular the positions taken by the disputing Parties during these proceedings,
shall be confidential and without prejudice to the rights of any Party in any further
proceedings under these procedures.
3.
Good offices, conciliation or mediation may be requested at any time by any
disputing Party. They may begin at any time and be terminated at any time. Once
procedures for good offices, conciliation or mediation are concluded without anagreement between the disputing Parties, the complaining Party may request theestablishment of an arbitral tribunal under Article 15.6.
4.
If the disputing Parties agree, good offices, conciliation or mediation may
continue while the dispute proceeds for resolution before an arbitral tribunal
convened under Article 15.6.

Article 15.6: Establishment of an Arbitral Tribunal
1.

The complaining Party may request, by means of a written notification
15-3

addressed to the Party complained against, the establishment of an arbitral tribunal
if the consulting Parties fail to resolve the matter within:(a)45 days after the date of receipt of the request for consultations under
Article 15.4;(b)

30 days after the date of receipt of the request for consultations under
Article 15.4 in a matter regarding perishable goods; or(c)such other period as the consulting Parties agree.

2.

Such notification shall also be communicated to all Parties.

3.

The request to establish an arbitral tribunal shall identify:(a)the specific measure at issue;(b)

the legal basis of the complaint including the provisions of thisAgreement alleged to have been breached and any other relevant
provisions; and(c)the factual basis for the complaint.

4.
Unless otherwise agreed by the disputing Parties, the arbitral tribunal shallbe established and perform its functions in a manner consistent with the provisionsof this Chapter.
5.
Notwithstanding Paragraphs 1, 3, and 4, an arbitral tribunal may not beestablished to review a proposed measure.

Article 15.7: Composition of Arbitral Tribunals
1.

The arbitral tribunal shall comprise three members.

2.
In the written notification pursuant to Article 15.6, the complaining Party or
Parties requesting the establishment of an arbitral tribunal shall designate one
member of that arbitral tribunal.
3.
Within 15 days of the receipt of the notification referred to in Paragraph 2,
the Party to which it was addressed shall designate one member of the arbitral
tribunal.
4.
The disputing Parties shall designate by common agreement theappointment of the third arbitrator within 15 days of the appointment of the second
arbitrator. The member thus appointed shall chair the arbitral tribunal.
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5.
If all 3 members have not been designated or appointed within 30 days fromthe date of receipt of the notification referred to in Paragraph 2, at the request of
any Party to the dispute the necessary designations shall be made by the DirectorGeneral of the WTO within a further 30 days.
6.
The Chair of the arbitral tribunal shall not be a national of any of the Parties,
nor have his or her usual place of residence in the territory of any of the Parties,
nor be employed by any of the Parties, nor have dealt with the matter in any
capacity.
7.

All arbitrators shall:(a)have expertise or experience in law, international trade, other matters
covered by this Agreement, or the resolution of disputes arising underinternational trade agreements;(b)

be chosen strictly on the basis of objectivity, reliability, and soundjudgment;(c)be independent of, and not be affiliated with or take instructions from,any Party; and(d)comply with the code of conduct for panelists established under theUnderstanding on Rules and Procedures Governing the Settlement of
Disputes, which is part of the WTO Agreement.

8.
Individuals may not serve as arbitrators for a dispute in which they haveparticipated pursuant to Article 15.5.
9.
If an arbitrator appointed under this Article resigns or becomes unable toact, a successor arbitrator shall be appointed within 15 days in accordance with theselection procedure as prescribed for the appointment of the original arbitrator andthe successor shall have all the powers and duties of the original arbitrator.
10.
The date of establishment of the arbitral tribunal shall be the date on which
the Chair is appointed.

15-5Article 15.8: Functions of Arbitral Tribunals
1.
The function of an arbitral tribunal is to make an objective assessment of the
dispute before it, including an examination of the facts of the case and theapplicability of and conformity with this Agreement, and make such other findings
and rulings necessary for the resolution of the dispute referred to it as it thinks fit.
2.
The findings and rulings of the arbitral tribunal shall be binding on thedisputing Parties.
3.
The arbitral tribunal shall, apart from the matters set out in Article 15.9,
regulate its own procedures in relation to the rights of Parties to be heard and its
deliberations in consultation with the disputing Parties.
4.
An arbitral tribunal shall take its decisions by consensus; provided that
where an arbitral tribunal is unable to reach consensus it may take its decisions bymajority vote.

Article 15.9: Rules of Procedure for Arbitral Tribunals
1.
Unless the disputing Parties otherwise agree, the arbitral tribunal
proceedings shall be conducted in accordance with the Model Rules of Procedure
for Arbitral Tribunals set out at Annex 15.B.
2.
Unless the disputing Parties otherwise agree within 20 days from the date ofdelivery of the request for the establishment of the arbitral tribunal, the terms ofreference shall be:"To examine, in the light of the relevant provisions of the Agreement, thematter referred to in the request for the establishment of an arbitral tribunal
pursuant to Article 15.6 and to make findings of law and fact together withthe reasons therefore for the resolution of the dispute.”3.
If a complaining Party wishes to argue that a matter has nullified or impaired
benefits, the terms of reference shall so indicate.
4.
At the request of a disputing Party or on its own initiative, the arbitral tribunal
may seek scientific information and technical advice from experts as it deems
appropriate. Any information so obtained shall be submitted to the disputing
Parties and any third Party for comment.
5.
Unless the arbitral tribunal determines otherwise because of the particular
circumstances of the case, a disputing Party shall bear the cost of its appointed
arbitrator and its own expenses. The cost of the Chair of the arbitral tribunal and15-6

other expenses associated with the conduct of its proceedings shall be borne by
the disputing Parties in equal shares.

Article 15.10: Suspension or Termination of Proceedings
1.
The disputing Parties may agree that the arbitral tribunal suspend its work at
any time for a period not exceeding 12 months from the date of such agreement. If
the work of the arbitral tribunal has been suspended for more than 12 months, theauthority for establishment of the tribunal shall lapse unless the disputing Parties
agree otherwise.
2.
The disputing Parties may agree to terminate the proceedings of an arbitral
tribunal in the event that a mutually satisfactory solution to the dispute has beenfound.

Article 15.11: Initial Report
1.
The reports of the arbitral tribunal shall be drafted without the presence of
the Parties and shall be based on the relevant provisions of this Agreement andthe submissions and arguments of the Parties.
2.

Unless the disputing Parties otherwise agree, the arbitral tribunal shall:(a)within 90 days after the last arbitrator is selected; or(b)in cases of urgency including those relating to perishable goods within
60 days after the last arbitrator is selected,

present to the disputing Parties an initial report.
3.

The initial report shall contain:(a)findings of fact;(b)the determination of the arbitral tribunal as to whether a disputing Party
has not conformed with its obligations under this Agreement or that adisputing Party’s measure is causing nullification or impairment in thesense of Annex 15.A or any other determination requested in the termsof reference; and(c)the decision of the arbitral tribunal on the dispute.

4.
In exceptional cases, if the arbitral tribunal considers it cannot release its
initial report within 90 days, or within 60 days in cases of urgency, it shall inform
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the disputing Parties in writing of the reasons for the delay together with anestimate of the period within which it will issue its report. Any delay shall not
exceed a further period of 30 days unless the disputing Parties otherwise agree.
5.
Arbitrators may furnish separate opinions on matters not unanimously
agreed.
6.
A disputing Party may submit written comments to the arbitral tribunal on its
initial report within 15 days of presentation of the report or within such other period
as the disputing Parties may agree.
7.
After considering any written comments on the initial report, the arbitral
tribunal may reconsider its report and make any further examination it considers
appropriate.

Article 15.12: Final Report
1.
The arbitral tribunal shall present a final report to the disputing Parties,
including any separate opinions on matters not unanimously agreed, within 30
days of presentation of the initial report, unless the disputing Parties otherwise
agree. The disputing Parties shall release the final report to the public within 15
days thereafter, subject to the protection of confidential information.
2.
If in its final report the arbitral tribunal determines that a disputing Party has
not conformed with its obligations under this Agreement, or that a Party’s measure
is causing nullification or impairment within the sense of Annex 15.A, the decision,
whenever possible, shall be to eliminate the non-conformity or the nullification or
impairment.
3.
No arbitral tribunal may, either in its initial report or its final report, disclose
which arbitrators are associated with majority or minority opinions.

Article 15.13: Implementation of Final Report
1.
The final report of an arbitral tribunal shall be binding on the disputing Parties
and shall not be subject to appeal.
2.
Unless the disputing Parties decide otherwise, they shall implement thedecision contained in the final report of the arbitral tribunal within a reasonable
period of time if it is not practicable to comply immediately.
3.
If the arbitral tribunal determines that a measure of a Party that is taken by
local government is not in conformity with its obligations under this Agreement, theParty shall notify the other Parties of the steps, such as legislative, regulatory or
15-8

administrative steps, which the Party will take to implement the decision of thearbitral tribunal.
4.
The reasonable period of time shall be mutually determined by the disputing
Parties, or where the disputing Parties fail to agree on the reasonable period oftime within 45 days of the release of the arbitral tribunal’s report, either Party to thedispute may refer the matter to the arbitral tribunal, which shall determine thereasonable period of time following consultation with the disputing Parties.

Article 15.14: Compliance within Reasonable Period of Time
1.
Where there is disagreement as to the existence or consistency with thisAgreement of measures taken within the reasonable period of time to comply withthe decision of the arbitral tribunal, such dispute shall be decided through recourse
to the dispute settlement procedures in this Chapter, including wherever possible
by resort to the original arbitral tribunal.
2.
The arbitral tribunal shall provide its report to the disputing Parties within 60
days after the date of the referral of the matter to it. When the arbitral tribunal
considers that it cannot provide its report within this timeframe, if shall inform thedisputing Parties in writing of the reasons for the delay together with an estimate of
the period within which it will submit its report. Any delay shall not exceed afurther period of 30 days unless the disputing Parties otherwise agree.

Article 15.15: Compensation and Suspension of Benefits
1.
If the Party concerned fails to bring the measure found to be inconsistent
with the Agreement into compliance with the decision of the arbitral tribunal under
Article 15.12 within the reasonable period of time established in accordance with
Article 15.13, that Party shall, if so requested, enter into negotiations with thecomplaining Party with a view to reaching a mutually satisfactory agreement on
any necessary compensatory adjustment.
2.
If the arbitral tribunal decides that a Party’s measure is causing nullification
or impairment in the sense of Annex 15.A and the nullification or impairment is notaddressed within the reasonable period of time established in accordance with
Article 15.13, that Party shall, if so requested, enter into negotiations with thecomplaining Party with a view to reaching a mutually satisfactory agreement on
any necessary compensatory adjustment.

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3.
A complaining Party may suspend the application of benefits of equivalenteffect to the responding Party 30 days after the end of the reasonable period oftime established in accordance with Article 15.13. Benefits may not be suspended
while the complaining Party is pursuing negotiations under Paragraphs 1 or 2.
4.
Compensation and the suspension of benefits shall be temporary measures.
Neither compensation nor the suspension of benefits is preferred to full
implementation of a decision to bring a measure into conformity with thisAgreement. Compensation and suspension of benefits shall only be applied until
such time as the measure found to be inconsistent with this Agreement has been
removed, or the Party that must implement the arbitral tribunal’s decision has doneso, or a mutually satisfactory solution is reached.
5.

In considering what benefits to suspend pursuant to Paragraph 3:(a)the complaining Party should first seek to suspend benefits in the same
sector(s) as that affected by the measure or other matter that the arbitral
tribunal has found to be inconsistent with the obligations derived of thisAgreement or to have caused nullification or impairment in the sense of
Annex 15.A; and(b)

if the complaining Party considers that it is not practicable or effective tosuspend benefits in the same sector(s), it may suspend benefits in othersectors. The communication in which it announces such a decision shallindicate the reasons on which it is based.

6.
Upon written request of the Party concerned, the original arbitral tribunal
shall determine whether the level of benefits suspended by the complaining Party
is excessive pursuant to Paragraph 3. If the arbitral tribunal cannot be establishedwith its original arbitrators, the proceeding set out in Article 15.7 shall be applied.
7.
The arbitral tribunal shall present its determination within 60 days from therequest made pursuant to Paragraph 6, or if an arbitral tribunal cannot beestablished with its original arbitrators, from the date on which the last arbitrator isselected. The ruling of the arbitral tribunal shall be final and binding. It shall bedelivered to the disputing Parties and be made publicly available.

Article 15.16 : Compliance Review
1.
Without prejudice to the procedures in Article 15.15, if the responding Party
considers that it has eliminated the non-conformity or the nullification or impairmentthat the arbitral tribunal found, it may refer the matter to the arbitral tribunal byproviding written notice to the other Party. The arbitral tribunal shall issue its reporton the matter within 90 days after the responding Party provides notice.
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2.
If the arbitral tribunal decides that the responding Party has eliminated thenon-conformity or the nullification or impairment, the complaining Party shallpromptly reinstate any benefits it has suspended under in Article 15.15.

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Annex 15.A
Nullification or Impairment
If any Party considers that any benefits it could reasonably have expected to
accrue to it under any provision of:(a)

Chapters 3 through 5 (Trade in Goods, Rules of Origin and Customs
Procedures);(b)

Chapter 8 (Technical Barriers to Trade);(c)Chapter 11 (Government Procurement); or(d)

Chapter 12 (Trade in Services),is being nullified or impaired as a result of the application of any measure that is
not inconsistent with this Agreement, the Party may have recourse to disputesettlement under this Chapter.

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Annex 15.B
Model Rules of Procedure
for Arbitral Tribunals

General provisions
1.

For the purpose of Chapter 15 and this Annex:

arbitral tribunal means an arbitral tribunal established pursuant to Article 15.6
(Establishment of an Arbitral Tribunal);
complaining Party means Party that requests the establishment of an arbitral
tribunal under Article 15.6 (Establishment of an Arbitral Tribunal);
disputing Party or Parties means the Party or Parties to the dispute;
third Party means a Party to this Agreement which has notified its interest in thedispute to the Parties to the dispute in accordance with Paragraph 8.
responding Party means a Party that has been complained against pursuant to
Article 15.6 (Establishment of an Arbitral Tribunal).

Notifications
2.
Any request, notice, written submissions or other document shall bedelivered by a Party or the arbitral tribunal by delivery against receipt, registeredpost, courier, facsimile transmission, telex, telegram or any other means oftelecommunication that provides a record of the sending thereof.
3.
A disputing Party shall provide a copy of each of its written submissions to
the other disputing Party or Parties, to a third Party, and to each of the arbitrators.
A copy of the document shall also be provided in electronic format.
4.
All notifications shall be made and delivered to each disputing Party and any
third Party.
5.
Minor errors of a clerical nature in any request, notice, written submission orother document related to the arbitral tribunal proceeding may be corrected bydelivery of a new document clearly indicating the changes.

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6.
If the last day for delivery of a document falls on a legal holiday of adisputing Party or third Party, the document may be delivered on the next businessday.

Commencing the arbitration
7.
Unless the disputing Parties otherwise agree, they shall meet with thearbitral tribunal within 7 days following the composition of the arbitral tribunal inorder to determine such matters that the disputing Parties or the arbitral tribunal
deem appropriate, including the remuneration and expenses that shall be paid to
the Chair of the arbitral tribunal, which normally shall conform to the WTO
standards.

Third Parties
8.
A Party to this Agreement which has an interest in the matter before thearbitral tribunal may notify the disputing Parties of this interest no later than 10days after the request for the establishment of the arbitral tribunal. In the case of amatter regarding perishable goods an interest has to be notified no later than
7 days after the request for the establishment of the arbitral tribunal.
9.
A third Party shall have an opportunity to make written submissions to thearbitral tribunal and be present at the hearings of the arbitral tribunal.

Initial submissions
10.
The complaining Party shall deliver its initial written submission no later than
20 days after the composition of the arbitral tribunal. The responding Party shalldeliver its written counter-submission no later than 20 days after the date ofdelivery of the initial written submission. A third Party may deliver a written
submission 7 days after the date of delivery of the counter-submission.

Operation of arbitral tribunals
11.

The chair of the arbitral tribunal shall preside at all of its meetings.

12.
Except as otherwise provided in these rules, the arbitral tribunal may
conduct its activities by any means, including telephone, facsimile transmissions orcomputer links.
13.

Only arbitrators may take part in the deliberations of the arbitral tribunal.

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14.
The drafting of any decision and ruling shall remain the exclusive
responsibility of the arbitral tribunal.

15.
Where a procedural question arises that is not covered by these rules, anarbitral tribunal may adopt an appropriate procedure that is not inconsistent withthis Agreement.
16.
When the arbitral tribunal considers that there is a need to modify any time
period applicable in the proceeding, or to make any other procedural oradministrative adjustment in the proceeding, it shall inform the disputing Parties
and any third Party in writing of the reasons for the modification or adjustment with
the indication of the period or adjustment needed.

Hearings
17.
The Chair shall fix the date and time of the hearing in consultation with thedisputing Parties and the other members of the arbitral tribunal. The Chair shallnotify in writing to the disputing Parties and any third Party the date, time andlocation of the hearing. Unless either of the disputing Parties disagrees, thearbitral tribunal may decide not to convene a hearing.
18.
Unless the disputing Parties otherwise agree, the hearing shall be held in
the responding Party’s territory. The responding Party shall be in charge of thelogistical administration of dispute settlement proceedings, in particular theorganisation of hearings, unless otherwise agreed.
19.

The arbitral tribunal may convene additional hearings if the Parties so agree.

20.

All arbitrators shall be present at all hearings.

21.
No later than five days before the date of a hearing, each disputing Party
and any third Party shall deliver a list of the names of representatives or advisers
who will be attending the hearing.
21.
The hearings of the arbitral tribunals shall be held in closed session, unlessthe disputing Parties decide otherwise. If the disputing Parties decide that thehearing is open to the public, part of the hearing may however be held in closed
session, if the arbitral tribunal, on application by the disputing Parties, so decides
for serious reasons. In particular, the arbitral tribunal shall meet in closed sessions
when the submission and arguments of a disputing Party contain business
confidential information. If the hearing is open to the public, the date, time andlocation of the hearing shall also be made publicly available by the disputing Party
in charge of the logistical administration of the proceeding.

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22.
The arbitral tribunal shall conduct the hearing in the following manner:argument of the complaining Party or Parties; argument of the responding Party;
rebuttal arguments of the disputing Parties; the views of third Parties; the reply of
the complaining Party; the counter-reply of the responding Party. The Chair may
set time limits for oral arguments to ensure that each disputing Party are afforded
equal time.
23.
The arbitral tribunal may direct questions to any disputing Party or third
Party at any time during a hearing.
24.
Within 10 days after the date of the hearing, each disputing Party may
deliver a supplementary written submission responding to any matter that arose
during the hearing.

Questions in writing
25.
The arbitral tribunal may at any time during the proceedings addressquestions in writing to any disputing Parties and to any third Party. The arbitral
tribunal shall deliver the written questions to the disputing Party or Parties and to
any third Party to whom the questions are addressed.
26.
A disputing Party or third Party to whom the arbitral tribunal addresses
written questions shall deliver a copy of any written reply to the other disputing
Party or any third Party and to the arbitral tribunal. Each disputing Party or any
third Party shall be given the opportunity to provide written comments on the reply
within 5 days after the date of delivery.

Confidentiality
27.
The disputing Parties and third Parties shall maintain the confidentiality of
the arbitral tribunal’s hearings, to the extent that the arbitral tribunal holds thehearing in closed session under rule 21. Each disputing Party and third Party shalltreat as confidential any information submitted by any other disputing or third Party
to the arbitral tribunal which that Party has designated as confidential. Where a
Party to a dispute submits a confidential version of its written submissions to thearbitral tribunal, it shall also, upon request of the other disputing Party, provide a
non-confidential summary of the information contained in its submissions that could
be disclosed to the public, no later than 15 days after the hearing, whichever islater. Nothing in these rules shall preclude a disputing Party or third Party fromdisclosing statements of its own positions to the public.

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Ex parte contacts
28.
The arbitral tribunal shall not meet or contact a disputing Party in theabsence of the other disputing Parties.
29
No disputing Party may contact any arbitrator in relation to the dispute in theabsence of the other disputing Parties or the other arbitrators.
30.
No arbitrator may discuss an aspect of the subject matter of the proceedingwith a disputing Party or Parties in the absence of the other arbitrators.

Role of experts
31.
Upon request of a disputing Party or on its own initiative, the arbitral tribunal
may obtain information and technical advice from any person or body that it deems
appropriate. Any information so obtained shall be submitted to the Parties forcomments.
32.
When a request is made for a written report of an expert, any time period
applicable to the arbitral tribunal proceeding shall be suspended for a period
beginning on the date of delivery of the request and ending on the date the report
is delivered to the arbitral tribunal.

Amicus curiae submissions
33.
The arbitral tribunal shall have the authority to accept and consider amicus
curiae submissions from any persons and entities in the territories of the disputing
Parties and from interested persons and entities outside the territory of the
disputing Parties.
34.
Any such submissions shall fulfil the following requirements: be made within
10 days following the composition of the arbitral tribunal; are concise and in nocase longer than 15 typed pages, included any annexes; and are directly relevantto the factual and legal issue under consideration by the arbitral tribunal.
35.
The submission shall contain a description of the person, whether natural or
legal, making the submission, including the nature of its activities and the source ofits financing, and specify the nature of the interest that that person has in thearbitration proceeding.
36.
The arbitral tribunal shall list in its ruling all the submissions that it hasreceived and that conform to the provisions of the above rules.

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Cases of urgency
37.
In cases of urgency referred to in Article 15.4 (Consultations), the arbitral
tribunal shall appropriately adjust the time periods mentioned in these rules.

Translation and interpretation
38.
The working language of the dispute settlement proceedings shall be
English, except where the responding Party has Spanish as its official language, inwhich case the working languages shall be English and Spanish.
39.
Written submissions, documents, oral arguments or presentations at thehearings, initial and final reports of the arbitral tribunal, as well as all other written
or oral communications between the disputing Parties and the arbitral tribunal,shall be conducted in the working language or languages.
40.
The costs incurred to prepare a translation of an arbitral tribunal ruling shallbe borne equally by the Parties.
41.
Any Party may provide comments on a translated version of a documentthat is prepared in accordance with these rules.

Computation of time
42.
Where anything under this Agreement or these rules is to be done, or thearbitral tribunal requires anything to be done, within a number of days after, before
or of a specified date or event, the specified date or the date on which the specified
event occurs shall not be included in calculating that number of days.
43.
Where, by reason of the operation of rule 6, a Party receives a document ona date other than the date on which the same document is received by the otherParty, any period of time the calculation of which is dependent on such receipt
shall be calculated from the date of receipt of the last such document.

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CHAPTER 16
STRATEGIC PARTNERSHIP

Article 16.1: Definitions
For the purposes of this Chapter, primary industry encompasses activities
in the agriculture and fisheries sectors (including activities in production,
harvesting, processing and manufacturing of food products and their derivatives)
and the forestry sector.

Article 16.2: Objectives
1.
The Parties agree to establish a framework for cooperation between two or
more of the Parties as a means to expand and enhance the benefits of thisAgreement for building a strategic economic partnership between them.
2.

The Parties will establish close cooperation aimed inter alia at:(a)strengthening and building on existing cooperative relationships among
the Parties,
including a
focus on innovation, research anddevelopment;(b)creating new opportunities for trade and investment, promoting
competitiveness and innovation including the involvement of public andprivate sectors;(c)supporting the important role of the private sector in promoting andbuilding strategic alliances to encourage mutual economic growth anddevelopment;(d)encouraging the presence of the Parties and their goods and services in
the respective markets of Asia, Pacific and Latin America; and(e)increasing the level of and deepening cooperation activities among theParties in areas of mutual interest.

Article 16.3: Scope
1.
The Parties affirm the importance of all forms of cooperation, with particularattention given to economic, scientific, technological, educational, cultural andprimary industry cooperation in contributing towards implementation of the

16-1

objectives and principles of this Agreement. Cooperation among the Parties may
be extended to other areas as agreed by the Parties.
2.
Possible areas of cooperation will be developed through Implementing
Arrangements.
3.
Cooperation among the Parties should contribute to achieving the objectivesof the Trans-Pacific Strategic Economic Partnership Agreement through theidentification and development of innovative cooperation programmes capable ofproviding added value to their relationships.
4.
Cooperation among the Parties under this Chapter will supplement thecooperation and cooperative activities among the Parties set out in other Chaptersof this Agreement.

Article 16.4: Economic Cooperation
1.

The aims of economic cooperation will be:(a)

to build on existing agreements or arrangements already in place fortrade and economic cooperation; and(b)to advance and strengthen trade and economic relations among theParties.

2.
In pursuit of the objectives in Paragraph 1, the Parties will encourage andfacilitate, as appropriate, the following activities, including, but not limited to:(a)policy dialogue and regular exchanges of information and views on ways
to promote and expand trade in goods and services among the Parties;(b)

keeping each other informed of important economic and trade issues,
and any impediments to furthering their economic cooperation;(c)providing assistance and facilities to businesspersons and trade
missions that visit each other’s country with the knowledge and supportof the relevant agencies;(d)supporting dialogue and exchanges of experience among the respective
business communities of the Parties;(e)establishing and developing mechanisms for providing information andidentifying opportunities for business cooperation, trade in goods andservices, investment, and government procurement;

16-2

(f)

stimulating and facilitating actions of public and/or private sectors inareas of economic interest, including to explore opportunities in third
markets; and(g)working together to promote the use of English and other languages astools for small and medium enterprises, and in the use of information
technology tools to assist the learning process, as agreed by the APEC
Economic Leaders at their 12th meeting.

Article 16.5: Cooperation in Research, Science and Technology
1.
The aims of cooperation in research, science and technology, carried out inthe mutual interest of all Parties and in compliance with their policies, particularly
as regards the rules for use of intellectual property resulting from research, will be:(a)

to build on existing agreements or arrangements already in place forcooperation in research, science and technology;(b)

to encourage, where appropriate, government agencies, research
institutions, universities, private companies and other researchorganisations in each other’s country to conclude direct arrangements
in support of cooperative activities, programmes or projects within theframework of this Agreement; and(c)to focus cooperative activities towards sectors where mutual andcomplementary interests exist.

2.
In pursuit of the objectives in Paragraph 1, the Parties will encourage andfacilitate, as appropriate, the following activities, including, but not limited to:(a)identifying strategies, in consultation with universities and research
centres, that encourage joint postgraduate studies and research visits;(b)exchange of scientists, researchers and technical experts;(c)exchange of information and documentation;(d)promotion of public/private sector partnerships in the support of thedevelopment of innovative products and services; and(e)cooperation in regional and other governmental and nongovernmental
forums in areas of mutual interest.

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Article 16.6: Education
1.

The aims of education cooperation will be:(a)

to build on existing agreements or arrangements already in place forcooperation in education; and(b)to promote networking, mutual understanding and close working
relationships in the area of education among the Parties.

2.
In pursuit of the objectives in Paragraph 1, the Parties will encourage andfacilitate, as appropriate, exchanges between and among their respective
education-related agencies, institutions, organisations, in fields such as:

3.

(a)

education quality assurance processes;(b)

on-line and distance education at all levels;(c)

primary and secondary education systems;(d)higher education;(e)technical education and vocational training;(f)industry collaboration for technical and vocational training; and(g)teacher training and development.

Cooperation in education can focus on:(a)the exchange of information such as teaching and curriculum materials,
teaching aids, and demonstration materials, as well as the organisationof relevant specialised exhibitions and seminars;(b)joint planning and implementation of programs and projects, and joint
coordination of targeted activities in agreed fields;(c)development of collaborative training, joint research and development,
across graduate and postgraduate studies;(d)the exchange of teaching staff, administrators, researchers and students
in relation to programmes that will be of mutual benefit;(e)gaining understanding of each Parties’ education systems and policies
including information relevant to the interpretation and evaluation ofqualifications, potentially leading to discussions between institutions of
16-4

higher learning on academic credit transfer and the possibility of mutual
recognition of qualifications;(f)collaboration on the development of innovative quality assurance
resources to support learning and assessment, and the professional
development of teachers and trainers in training and vocational
education; and(g)encouraging and facilitating the development of public and / or private
ventures in education.

Article 16.7: Cultural Cooperation
The aims of cultural cooperation will be to:(a) build on existing agreements or arrangements already in place forcultural cooperation; and(b) promote the exchange of information and practice among the Parties.

Article 16.8: Primary Industry
1.
The aims of cooperation in primary industry, carried out in the mutualinterest of all Parties and in compliance with their policies, will be:(a)

to build on existing Agreements or Arrangements already in place forcooperation in agriculture and forestry;(b)

to encourage and promote better understanding between the primarysectors in each country;(c)to encourage, where appropriate, the development of scientificknowledge and technical cooperation among government agencies,
research institutions, universities, private companies and other researchorganisations in each others’ countries and to conclude direct
arrangements in support of cooperative activities, programmes or
projects within the framework of this Agreement;(d)to direct cooperative activities towards sectors where mutual andcomplementary interests exist; and(e)to promote international trade liberalisation in the primary industry
sectors, develop trade and promote commercial partnerships, includingcommon projects in third countries.
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2.
In pursuit of the objectives in Paragraph 1, the Parties will encourage andfacilitate, as appropriate, the following activities in the primary industry sectors
including, but not limited to:(a)encouraging the expansion of opportunities for contact;(b)promoting the exchange of information, ideas and research;(c)encouraging specific industry exchanges and joint ventures, including in
relation to research, to develop the primary industry sectors;(d)encouraging universities in their countries to strengthen their links in thearea of primary industry sectors including through the exploration ofmulti-disciplinary and multi-institutional degree courses; and(e)encouraging the promotion of primary industry sectors related education
services and other activities.

3.
To facilitate cooperation in the primary industry sectors, the Parties will also
work towards:(a)promoting compliance with, and enforcement of, international rules
relating to trade in primary industry sectors products;(b)

promoting transparency and public participation in decision-making
relating to the Parties’ primary industry sectors; and(c)identifying and resolving issues that hamper the effectiveness ofcooperation in the primary industry sectors.

Article 16.9: Mechanisms for Cooperation
1.
The Parties will designate a contact point to facilitate communication on
possible cooperation activities. The contact point will work with government
agencies, private sector representatives and educational and research institutionsin the operation of this Chapter.
2.

The Parties agree that the mechanisms for cooperation will take the form of:(a)regular meetings of the Commission to discuss cooperative areas ofinterest; and(b)meetings as required between the relevant institutions (including, but notlimited to, the relevant government agencies, Crown Research
16-6

Institutes, and universities) of the Parties to help foster closer
cooperation in thematic areas.
3.
The Parties will make maximum use of diplomatic channels to promotedialogue and cooperation consistent with this Agreement.

Article 16.10: Cooperation with Non-Parties
The Parties recognise the value of international cooperation for thepromotion of sustainable development and agree to develop, where appropriate,
projects of mutual interest, with non-Parties.

Article 16.11: Resources
With the aim of contributing to fulfilling the cooperation objectives of thisAgreement, the Parties commit themselves to providing, within the limits of theirown capacities and through their own channels, the appropriate resources,
including financial resources.

Article 16.12: Specific Functions for the Commission in Cooperation Matters
Notwithstanding the provisions of Article 17.2 (Functions of the Commission)
the Commission shall have, in particular, the following functions:(a)oversight of the implementation of the cooperation framework agreed by
the Parties;(b)

encouraging the Parties to undertake cooperation activities under thecooperation framework agreed by the Parties;(c)making recommendations on the cooperation activities under this
Chapter, in accordance with the strategic priorities of the Parties; and(d)review, through regular reporting from each Party, the operation of this
Chapter and the application and fulfillment of its objectives.

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CHAPTER 17
ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS

Article 17.1: Establishment of the Trans-Pacific Strategic Economic
Partnership Commission
The Parties hereby establish a Trans-Pacific Strategic Economic
Partnership Commission (Commission) which may meet at the level of Ministers or
senior officials, as mutually determined by the Parties. Each Party shall be
responsible for the composition of its delegation.

Article 17. 2: Functions of the Commission
1.

2.

The Commission shall:(a)consider any matters relating to the implementation of this Agreement;(b)review within 2 years of entry into force of this Agreement and at least
every 3 years thereafter the economic relationship and partnershipamong the Parties, consider any proposal to amend this Agreement or
its Annexes and otherwise oversee the further elaboration of thisAgreement;(c)supervise the work of all Committees and working groups establishedunder this Agreement;(d)explore measures for the further expansion of trade and investment
among the Parties and identify appropriate areas of commercial,industrial and technical cooperation between relevant enterprises andorganisations of the Parties; and(e)consider any other matter that may affect the operation of thisAgreement.

The Commission may:(a)establish committees and working groups, refer matters to any
committee or working group for advice, and consider matters raised byany committee or working group;

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(b)

further the implementation of the Agreement’s objectives by approving
any modifications1 of, inter alia:(i)the Schedules contained in Annex I (Elimination of Customs
Duties), by accelerating the elimination of customs duties;(ii)

the rules of origin established in Annex II (Specific Rules ofOrigin); or(iii)

the lists of entities and covered goods and services andthresholds contained in Annexes 11.A and 11.C of the Chapter
11 (Government Procurement).

(c)further the implementation of the Agreement’s objectives throughImplementing Arrangements;(d)seek to resolve differences or disputes that may arise regarding theinterpretation or application of this Agreement;(e)seek the advice of non-governmental persons or groups on any matter
falling within its responsibilities where this would help the Commission
make an informed decision; and(f)take such other action in the exercise of its functions as the Parties may
agree.

Article 17.3: Rules of Procedure of the Commission
1.
The Commission may take decisions on any matter within its functions as
set out in Article 17.2 by mutual agreement of those Parties present at the meetingof the Commission. Any decision affecting a Party shall only be taken by theCommission with the express agreement of that Party.
2.
The Commission shall convene annually, or at such other times as theParties may mutually agree. Annual sessions of the Commission shall be chaired
successively by each Party. Other sessions of the Commission shall be chairedby the Party convening the meeting.

1

The acceptance of any modification by a Party is subject to the completion of any necessary
domestic legal procedures of that Party. Chile shall implement the actions of the Commission
through Acuerdos de Ejecución, in accordance with article 50, numeral 1, second paragraph, of theof the Constitución Política de la República de Chile.

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3.
The Party chairing a session of the Commission shall provide any necessary
administrative support for such session. Decisions of the Commission shall be
notified to the Parties by the Party chairing that session of the Commission.

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CHAPTER 18
GENERAL PROVISIONS

Article 18.1: Annexes and Footnotes
The Annexes and footnotes to this Agreement shall constitute an integral
part of this Agreement.

Article 18.2: Relation to Other International Agreements
Nothing in this Agreement shall derogate from the existing rights andobligations of a Party under the WTO Agreement or any other multilateral orbilateral agreement to which it is a party.

Article 18.3: Succession of Treaties or International Agreements
Any reference in this Agreement to any other treaty or international
agreement shall be made in the same terms to its successor treaty or international
agreement to which a Party is party.

Article 18.4: Application
Each Party is fully responsible for the observance of all provisions in thisAgreement and shall take such reasonable measures as may be available to it toensure their observance by local government and authorities.1

Article 18.5: Distinctive Products
1.
The Parties shall endeavour after one year following the entry into force of
this Agreement, that they will consider the recognition of distinctive products.2
2.
If any Party grants in the future to a third party recognition of distinctive
products, it shall extend this recognition automatically to it on a non discrminatory
basis.

1

For greater certainty, this does not pre-judge the rights of the Parties under Chapter 15 (Dispute
Settlement) and specifically Article 15.6(3) (Establishment of an Arbitral Tribunal).
2
With respect to Chile, it will be seeking the recognition as distinctive products of Chile: Pisco
Chileno (Chilean Pisco), Pajarete, and Vino Asoleado.
18-1Article 18.6: Disclosure of Information
Nothing in this Agreement shall be construed to require any Party to furnish
or allow access to information the disclosure of which it considers would:(a)be contrary to the public interest as determined by its legislation;(b)

be contrary to any of its legislation including but not limited to those
protecting personal privacy or the financial affairs and accounts ofindividual customers of financial institutions;(c)

impede law enforcement; or(d) which would prejudice legitimate commercial interests of particularenterprises, public or private.

Article 18.7: Confidentiality
Where a Party provides information to another Party in accordance with thisAgreement and designates the information as confidential, the other Party shallmaintain the confidentiality of the information. Such information shall be used only
for the purposes specified, and shall not be otherwise disclosed without the specificpermission of the Party providing the information, except to the extent that it may
be required to be disclosed in the context of judicial proceedings.

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CHAPTER 19
GENERAL EXCEPTIONSArticle 19.1: General Exceptions
1.
For the purposes of Chapters 3 through 8 (Trade in Goods, Rules of Origin,
Customs Procedures, Sanitary and Phytosanitary Measures, Technical Barriers to
Trade and Trade Remedies), Article XX of GATT 1994 and its interpretive notes
are incorporated into and made part of this Agreement, mutatis mutandis.
2.
The Parties understand that the measures referred to in Article XX(b) of
GATT 1994 include environmental measures necessary to protect human, animalor plant life or health, and that Article XX(g) of GATT 1994 applies to measuresrelating to the conservation of living and non-living exhaustible natural resources.
3.
For greater certainty, the Parties understand that the measures referred toin Article XX(f) of GATT 1994 include measures necessary to protect specific sitesof historical or archaeological value, or to support creative arts of national value.1
4.
For the purposes of Chapter 12 (Trade in Services), Article XIV of GATS
(including its footnotes) is incorporated into and made part of this Agreement,
mutatis mutandis. The Parties understand that the measures referred to in Article
XIV(b) of GATS include environmental measures necessary to protect human,
animal or plant life or health.
5.
For the purposes of Chapter 12 (Trade in Services), subject to therequirement that such measures are not applied in a manner which would
constitute a means of arbitrary or unjustifiable discrimination between the Parties
where like conditions prevail, or a disguised restriction on trade in services, nothing
in this Agreement shall be construed to prevent the adoption or enforcement by a
Party of measures necessary to protect national works or specific sites of historicalor archaeological value, or to support creative arts of national value.1

1“Creative arts” include: the performing arts – including theatre, dance and music – visual arts andcraft, literature, film and video, language arts, creative on-line content, indigenous traditional
practice and contemporary cultural expression, and digital interactive media and hybrid art work,
including those that use new technologies to transcend discrete art form divisions. The term
encompasses those activities involved in the presentation, execution and interpretation of the arts;and the study and technical development of these art forms and activities.
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Article 19.2: Security Exceptions
1.

Nothing in this Agreement shall be construed:(a)to require a Party to furnish or allow access to any information thedisclosure of which it determines to be contrary to its essential security
interests; or(b)

to prevent a Party from taking any actions which it considers necessary
for the protection of its essential security interests 2

(c)

(i)

relating to the traffic in arms, ammunition and implements of war
and to such traffic in other goods and materials or relating to the
supply of services as carried on, directly or indirectly, for the
purpose of supplying or provisioning a military establishment,(ii)

taken in time of war or other emergency in international relations,
or

(iii)

relating to fissionable and fusionable materials or the materials
from which they are derived; orto prevent a Party from taking any action in pursuance of its obligations
under the United Nations Charter for the maintenance of international
peace and security.

2.
The Commission shall be informed to the fullest extent possible of measurestaken under Subparagraphs 1(b) and (c) and of their termination.

Article 19.3: Measures to Safeguard the Balance of Payments
1.
Where a Party is in serious balance of payments and external financial
difficulties or threat thereof, it may adopt or maintain restrictive measures withregard to trade in goods and in services including on payments and transfers.
2.

Restrictions adopted or maintained under Paragraph 1 shall:(a)2

be consistent with the conditions established in the WTO Agreement
and consistent with the Articles of Agreement of the International
Monetary Fund;For greater certainty, nothing in this Agreement shall be construed to prevent a Party from taking
any action which it considers necessary for the protection of critical infrastructure from deliberateattempts intended to disable or degrade such infrastructure.
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(b)

avoid unnecessary damage to the commercial, economic and financial
interests of the other Parties;(c)

not exceed those necessary to deal with the circumstances described in
Paragraph 1;(d)be temporary and be phased out progressively as the situation specified
in Paragraph 1 improves; and(e)be applied on a non discriminatory basis.

3.
In determining the incidence of such restrictions, the Parties may givepriority to economic sectors which are more essential to their economic
development. However, such restrictions shall not be adopted or maintained forthe purpose of protecting a particular sector.
4.
Any restrictions adopted or maintained by a Party under paragraph 1, or any
changes therein, shall be promptly notified to the other Party.
5.
The Party adopting or maintaining any restrictions under paragraph 1 shallpromptly commence consultations with the other Parties in order to review themeasures adopted or maintained by it.

Article 19.4: Taxation Measures
1.

For the purposes of this Article:

tax convention means a convention for the avoidance of double taxation or otherinternational taxation agreement or arrangement; andtaxation measures do not include a “customs duty” as defined in Article 2.1(Definitions of General Application).
2.
Except as provided in this Article, nothing in this Agreement shall apply totaxation measures.
3.
This Agreement shall only grant rights or impose obligations with respect totaxation measures where corresponding rights or obligations are also granted or
imposed under Article III of GATT 1994 and, with respect to services, Articles I and
XIV (d) of GATS where applicable.
4.
Nothing in this Agreement shall affect the rights and obligations of theParties under any tax convention in force between the Parties. In the event of any
inconsistency relating to a taxation measure between this Agreement and such tax
convention, the latter shall prevail to the extent of the inconsistency. In the case of
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a tax convention between the Parties, the competent authorities under thatconvention shall have sole responsibility for determining whether any inconsistency
exists between this Agreement and that convention.
Article 19.5: Treaty of Waitangi
1.
Provided that such measures are not used as a means of arbitrary or
unjustified discrimination against persons of the other Parties or as a disguised
restriction on trade in goods and services, nothing in this Agreement shall preclude
the adoption by New Zealand of measures it deems necessary to accord morefavourable treatment to Maori in respect of matters covered by this Agreement
including in fulfilment of its obligations under the Treaty of Waitangi.
2.
The Parties agree that the interpretation of the Treaty of Waitangi, including
as to the nature of the rights and obligations arising under it, shall not be subject tothe dispute settlement provisions of this Agreement. Chapter 15 (Dispute
Settlement) shall otherwise apply to this Article. An arbitral tribunal establishedunder Article 15.6 (Establishment of an Arbitral Tribunal) may be requested by
Brunei Darussalam, Chile or Singapore to determine only whether any measure(referred to in Paragraph 1) is inconsistent with their rights under this Agreement.

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CHAPTER 20
FINAL PROVISIONS

Article 20.1: Investment Negotiations
Unless otherwise agreed, no later than 2 years after entry into force of thisAgreement the Parties shall commence negotiations with a view to including achapter on investment in this Agreement on a mutually advantageous basis.

Article 20.2: Financial Services Negotiations
Unless otherwise agreed, no later than 2 years after the entry into force of
this Agreement the Parties shall commence negotiations with a view to including aself-contained chapter on financial services in this Agreement on a mutuallyadvantageous basis.

Article 20.3: Signature
1.
This Agreement shall be open for signature by Brunei Darussalam, Chile,
New Zealand and Singapore and shall remain open for signature for a period of
6 months from 15 June 2005.
2.
This Agreement shall be subject to ratification, acceptance or approval bysignatories.

Article 20.4: Entry into Force1.
This Agreement shall enter into force on 1 January 2006 for thosesignatories which have deposited an Instrument of Ratification, Acceptance orApproval provided that at least two signatories have deposited such instrument bythat date.
2.
In the event that only one signatory has deposited an Instrument of
Ratification, Acceptance or Approval before 1 January 2006, this Agreement shallenter into force 30 days after the deposit of the second such instrument.
3.
For signatories that deposit an Instrument of Ratification, Acceptance orApproval after 1 January 2006, the Agreement shall enter into force 30 days
following the date of deposit of such instrument.

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Article 20.5: Brunei Darussalam
1.
Subject to Paragraphs 2 to 6, this Agreement shall be provisionally appliedin respect of Brunei Darussalam from 1 January 2006, or 30 days after the depositof an instrument accepting provisional application of this Agreement, whichever isthe later.
2.
The provisional application referred to in Paragraph 1 shall not apply to
Chapter 11 (Government Procurement) and Chapter 12 (Trade in Services).
3.
The obligations of Chapter 9 (Competition Policy) shall only be applicable toBrunei Darussalam if it develops a competition law and establishes a competition
authority. Notwithstanding the above, Brunei Darussalam shall adhere to the
APEC Principles to Enhance Competition and Regulatory Reform.
4.
The Commission shall consider whether to accept the Annexes for Brunei
Darussalam under Chapter 11 (Government Procurement) and Chapter 12 (Tradein Services), no later than two years after the entry into force of this Agreement inaccordance with Article 20.4(1) or (2), unless the Commission otherwise agrees toa later date.
5.
Upon a decision of the Commission accepting the Annexes referred to in
Paragraph 4, Brunei Darussalam shall deposit an Instrument of Ratification,
Acceptance or Approval within two months of the decision by the Commission. The
Agreement shall enter into force for Brunei Darussalam 30 days after the deposit ofsuch instrument
6.
Unless the Commission decides otherwise, if the conditions in Paragraph 4
or 5 are not met, the Agreement shall no longer be provisionally applied to Brunei
Darussalam.

Article 20.6: Accession
1.
This Agreement is open to accession on terms to be agreed among theParties, by any APEC Economy or other State. The terms of such accession shalltake into account the circumstances of that APEC Economy or other State, inparticular with respect to timetables for liberalisation.
2.
The agreement on the terms of accession shall enter into force 30 days
following the date of deposit with the depositary of an Instrument of Accession
which indicates acceptance or approval of such terms.

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Article 20.7: Amendments
1.

The Parties may agree on any modification of or addition to this Agreement.

2.
When so agreed, and approved in accordance with the applicable legal
procedures of each Party, a modification or addition shall constitute an integral partof this Agreement.
3.
If any provision of the WTO Agreement that the Parties have incorporated
into this Agreement is amended, the Parties shall consult on whether to amend thisAgreement.

Article 20.8: Withdrawal
Any Party may withdraw from this Agreement. Such withdrawal shall takeeffect upon the expiration of six months from the date on which written notice of
withdrawal is received by the Depositary. If a Party withdraws, the Agreement shallremain in force for the remaining Parties.

Article 20.9: Depositary State and Functions
1.
The original of this Agreement shall be deposited with the Government of
New Zealand which is hereby designated as the Depositary of this Agreement.
2.
The Depositary shall transmit certified copies of this Agreement and any
amendments to this Agreement to all signatory States, acceding APEC Economies
and other acceding States.
3.
The Depositary shall notify all signatory States, acceding APEC Economies
and other acceding States of:(a)each signature, ratification, acceptance, approval or accession to thisAgreement in accordance with Articles 20.3, 20.4, and 20.6;(b)

the instrument accepting provisional application in accordance with
Article 20.5;(c)the respective dates on which the Agreement enters into force inaccordance with Article 20.4, 20.5 and 20.6; and(d)any notification of withdrawal received in accordance with Article
20.8.

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4.
Following entry into force of this Agreement, the Depositary shall transmit acertified true copy of this Agreement to the Secretary-General of the United
Nations for registration and publication in accordance with Article 102 of theCharter of the United Nations. The Depositary shall likewise transmit certified truecopies of any amendments which enter into force.

Article 20.10: Authentic Texts
The English and Spanish texts of this Agreement are equally authentic. In
the event of divergence, the English text shall prevail.

IN WITNESS WHEREOF, the undersigned, being duly authorised by theirrespective Governments, have signed this Agreement.

DONE at, ………………………… on ……………………….. 2005.

For Brunei Darussalam

For the Republic of Chile

For New Zealand

For the Republic of Singapore

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