Derestricted

                                                                               FTAA.TNC/w/133/Rev.1

                                                                                       July 3, 2001

                                                                              Original: English-Spanish

FTAA - Free Trade Area of the Americas
 
 

Draft Agreement
 
 

Chapter on Market Access
 
 

· CHAPTER ON MARKET ACCESS
 
 
 

The draft texts pertaining to the issue areas of the NGMA are included in the Annex. There may be some inconsistencies in the texts since the translation of the texts has not been subject to thorough review. Such inconsistencies, which should be corrected, do not compromise the delegations.
 

The Annex includes the following texts:
 

· Tariffs and Non-Tariff Measures;
 

· Safeguards;
 

· Origin Regime;
 

· Customs Procedures;
 

· [Customs] Procedures Related to Rules of Origin; and 
 

· Standards and Technical Barriers to Trade.
 

ANNEX
 

[CHAPTER ON] TARIFFS AND NON-TARIFF MEASURES (1)(2)
 

Section One. General Provisions
 

Article 1. Scope of application.
 

1.1 [Except as otherwise provided,] this [Chapter] applies to trade in [originating] goods [between the Parties.][of a Party].
 

[1.2. In trade in goods between the Parties, the classification of goods shall be governed by the nomenclature in the updated version of the Harmonized System for Merchandise Designation and Coding. Once the present Agreement has entered into force, the Parties shall conclude negotiations on a common nomenclature as soon as possible.]
 

[1.3. To make the application and scope of preferences transparent, once the present Agreement enters into force, the Parties shall be obligated to make notification of the classification rulings handed down or issued by their respective competent entities, based on the explanatory notes in the Harmonized System. Any differences in interpretation shall, first of all, be submitted to an ad hoc or permanent regional mechanism for settlement. If the differences in interpretation cannot be settled by the mechanism, the Parties may submit their differences to the World Customs Organization (WCO).]
 

Article 2. National Treatment.
 

2.1. [Each Party shall accord national treatment to the goods (3) of [the other][another] Party[ies] in accordance with Article III of the General Agreement on Tariffs and Trade of 1994 (GATT 1994), [including its interpretive notes, and to this end]. [For such purposes], Article III of GATT 1994 and its interpretative notes are incorporated into [and made part of ] this Agreement [and form an integral part of it].] [Each Party shall grant to originating goods imported from another Party national treatment in accordance with Article III of the General Agreement on Tariffs and Trade of 1994 (GATT 1994), which national treatment shall extend to the sale, offering for sale, purchase, transportation, distribution and use of such goods in the Parties.]
 

[2.2. The provisions of paragraph 2.1 on national treatment shall mean, with respect to a province, state,[department or any other type of political division] of the Parties, a treatment no less favorable than the most favorable treatment that province, state, [department or other political division] accords to any like [, directly competitive or substitutable] goods, [direct competitors or substitutes of such Party][as the case may be, of the Party of which it forms a part.]]
 

[Article 3. Relationship with other sub-regional trade agreements.]
 

[3.1. None of the provisions of this [Chapter] modify or alter in any way concessions accorded in relation to customs duties and non-tariff measures in the framework of other trade agreements entered into between the Parties under Article XXIV of GATT 1994, [unless the preferences obtained under the FTAA are equal to or greater than these.] [except in cases where the provisions of this [Chapter] accord greater advantages to one or more Parties that have entered into such agreements, in which case the provisions of this [Chapter] shall prevail between such Parties.]]
 

Section Two. Tariffs
 

Article 4. Tariff Elimination [(Liberalization Program)] [Schedule] [Tariff Liberalization Program]

[4X.1. The base tariffs on which the liberalization process will be initiated appear in Annex [] to the present Agreement and are all expressed in ad valorem terms.]
 

4.1. [Except as otherwise provided in this Agreement, no Party may increase any [existing] customs duty, or adopt any new customs duty, on an originating good [subject to the [Tariff] Liberalization Program.] [ in accordance with the Schedule]] [If a Party increases the customs duty in relation to the base tariff, preference shall be applied on the base tariff that appears in Annex []. For cases in which a Party reduces the duty in relation to the base tariff, preference shall automatically be applied to the new duty on the date in which it enters into force. The countries may once again increase the duties to the level of the {tariff base}{base tariff}; in this case, preference will be applied on the {tariff base}{base tariff}.] [The Parties agree to set the duties on originating goods in the Liberalization Programme in ad valorem terms. The Parties may however, apply the level of customs duty set in ad valorem or other terms.] [Except where otherwise stipulated in this Agreement, each Party shall progressively eliminate its customs duties on originating goods, in accordance with the terms established in Annex.... (Liberalization Programme).]
 

[4.2. The Parties agree to fix the customs duties on the goods contained in the Liberalization Program in ad valorem terms. [thus eliminating any type of mixed, specific or variable tariff.]][4.2 Except as otherwise provided in this Agreement, no Party may apply on originating goods any customs duty higher than that provided for in Annex ___ of (Liberalisation Programme)
 

[4.___ For cases in which a Party lowers its tariff to a level equal to or less than the existing residual tariff rate, the duty applied to a trading partner shall be determined by the following calculation:
 

Resimod = MFNi - (Bo - Resi) * MFNi

Bo
 

Where: MFNi = mfn tariff applied at that time; Bo = base tariff established in the Tariff Reduction Schedule; Resi = residual tariff corresponding to the current tariff reduction period; Resimod = modified residual tariff applied to the preferential partner]
 

[4.3. [Except as otherwise provided in this Agreement,] [as of the entry into force hereof] each Party shall[progressively] eliminate its customs duties [and other charges] on originating goods, in accordance with the terms established in Annex_____ [([Tariff] Liberalization Program)] [Schedule].] [In the case of smaller economies, special, more favorable tariff reduction conditions could be agreed, including longer, differentiated time periods, and a grace period for the initiation of the tariff reduction.] [The Parties agree to set the duties on originating goods in the Liberalization Programme in ad valorem terms. The Parties may however, apply the level of customs duty set in ad valorem or other terms.]
 

[4X.2. A Party may create new tariff breakdowns, provided always that the customs tariff applicable to the originating goods concerned is not greater than the one applicable to the tariff {fraction}{item} broken down.]
 

4.4. On the request of any [of the Parties][Party][consultations shall be carried out to examine the possibility of][one or more other Parties may agree to consider] accelerating the elimination of customs duties set out in the [[Tariff] Liberalization Program.][Schedule.][Once approved by the Parties and pursuant to their applicable legal procedures, the agreement regarding the accelerated removal of the customs tariff shall prevail over any agreement on customs duties or applicable reduction category][An agreement between two or more Parties to accelerate the elimination of a customs duty on a good shall supercede any duty rate or staging category determined] pursuant to the [Liberalization Program][Schedule][for such good when approved by each such Party in accordance with its applicable legal procedures]. 
 

[4X.3 If a Party were, at any time, to reduce its most-favored-nation customs duties for one or more of the goods covered by this {Agreement}{Treaty}, the customs duty applicable in reciprocal trade must be adjusted in keeping with the proportionality rules set forth in Annex ___ (tariff elimination program)]
 

[At least once a year, as of the entry into force of this {Agreement}{Treaty}, the Parties shall examine, through the Committee on Trade in Goods, the possibility of incorporating into the Trade Liberalization Program goods not included in the tariff {reduction }{elimination} program. 
 

Notwithstanding the provisions in Article 1, for goods not included in the tariff reduction program the Parties agree not to apply the provisions of this Agreement.]
 

4.5. A Party may:
 

a) [increase a customs duty to a level not greater than the one established in the [Schedule][Liberalization Program] when that customs duty has previously been unilaterally reduced to a level less than that established in the [Schedule][[Tariff] Liberalization Program]]
 

[b) [maintain or increase a customs duty when this is permitted pursuant to [{the}{a} dispute settlement provisions of the WTO Agreement, or any other agreement negotiated in accordance with the WTO. ] [the [dispute settlement] provisions of [the GATT (1994) and] the Marrakesh Agreement establishing the World Trade Organization]][or Article VI of GATT 1994 and associated WTO Agreements ].]
 

c) [create new tariff [breakdowns] [break-outs], [at a more detailed level than that established in the Harmonized System,] provided always that the customs tariff applicable to the originating goods concerned is not greater than the one applicable to the tariff fraction broken down.] [create tariff breakdowns at a level more detailed than that established in the Harmonised System, always provided that the tariff treatment applicable to originating goods as a result of this action is no greater than that provided for under the Liberalisation Programme]
 

[4.6. During the tariff elimination process, the Parties agree to apply to originating goods traded among them the lesser of either the customs duties established under the tariff elimination program, or the applicable rate determined in accordance with Article I of the GATT 1994 ]
 

Article 5. Provisions on special regimes: 
 

[[5.1. Refunds and[deferred][waiver of the] payment of tariffs.][Temporary Admission and Drawback]]
 

[5.1.1. In matters concerning customs duty refunds and exemptions, the Parties shall conserve their rights and obligations, in accordance with their legislation and WTO commitments. ]
 

[5.1.1. None of the Parties may refund the customs duties paid, or exempt or reduce the amount of customs tariffs owed with regard to a good imported into its territory, [on the condition that the good is][that is either:]
 

(a) used as material in the production of another good subsequently exported to the territory of another Party; or 
 

(b) substituted by an identical or similar good used as material in the production of another good that is subsequently exported to the territory of another Party, 
 

in an amount that exceeds the total of the customs duties paid or owed on that quantity of the imported good that is materially incorporated in the good exported to the territory of the other Party, or replaced by identical or similar goods that are materially incorporated in the good exported to the territory of the other Party, with the due discount for waste.]
 

[5.1.2. None of the exporting Parties may refund, exempt or reduce: 
 

(a) the anti-dumping or countervailing duties that are applied in accordance with the domestic laws of the Party and which are compatible with the provisions of [Chapter] ____, "Unfair Trade Practices"; 
 

(b) the premiums that are offered or collected on imported goods, arising from any tendering system regarding the application of quantitative restrictions on importation, tariff rate quotas, or preferential tariff-rate quotas; and 
 

(c) customs duties paid {and}{or} owed on a good imported to its territory and substituted by a similar or identical good that is subsequently exported to the territory of the other Party. 
 

Sub-paragraphs (a) and (b) shall come into force on ..... and sub-paragraph (c) when this Agreement comes into effect.]
 

[5.1.3. Paragraph [s 5.1.1 and] 5.1.2 shall not apply to: 
 

(a) a good that, pursuant to the legislation of each Party, entered under bond for transportation and exportation to the territory of the other Party;
 

(b) a good exported to the territory of another Party in the same condition as when imported into the territory of the Party from which the good is exported. Processes such as testing, cleaning, re-packaging, inspection or preserving the good in its same condition shall not be considered as changes in the condition of the good. When a good has been commingled with fungible goods and exported in the same condition, its origin may be established for the purposes of this paragraph using the inventory methods set out in [Chapter] ___ , "Rules of Origin"; 
 

(c) a good imported into the territory of a Party, that subsequently is deemed to be exported from its territory or is used as a material in the production of another good that is deemed to be exported to the territory of the other Party, or is substituted by an identical or similar good used as a material in the production of another good that is deemed to be exported to the territory of the other Party, as a result of: 
 

(i) delivery to a duty-free shop, or 
 

(ii) delivery for ship's stores or supplies for ships or aircraft; 
 

(d) a refund made by one of the Parties of the customs duties paid on a particular good imported into its territory and subsequently exported to the territory of another Party, when this refund is granted by reason of the failure of such good to conform to sample or specification, or by occasion of the shipment of such good without the consent of the consignee; or 
 

(e) an originating good that is imported into the territory of a Party and subsequently exported to the territory of another Party, or used as material in the production of another good that is subsequently exported to the territory of another Party, or is substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of another Party.]

[5.1.4. No Party may adopt any new waiver of customs duties, or expand with respect to existing recipients or extend to any new recipient the application of an existing waiver of customs duties, where the waiver is conditioned on the fulfillment of a performance requirement.]
 

[5.1.5. No Party may condition on the fulfillment of a performance requirement the continuation of any existing waiver of customs duties.]
 

[5.2. Temporary {importation [/}admission{]}[of goods].]
 

[5.2.1. [The Parties][Each Party] shall grant duty-free temporary {importation [or]} {[/}admission] for the goods listed below [which are imported [or admitted ] from the territory of another Party into their territory][imported by or for the use of a resident of another Party], [regardless of their origin and regardless of whether [similar goods, direct competitors or substitutes,][like, directly competitive or substitutable goods] are available in the territory of{[that][the] Party} {the importing Party}]:
 

b) professional equipment [including software and broadcasting and cinematographic equipment] necessary for [carrying out] the business activity, trade or profession of a business person [who qualifies for temporary entry pursuant to the laws of the importing country]; 
 

c) [equipment for the press or for transmission of radio or television broadcasting and cinematographic equipment;]
 

d) [goods imported for sports purposes or intended for display or demonstration;]
 

e) [goods intended for display or demonstration, including] commercial samples and advertising films[aimed at procuring orders for goods or orders]; and
 

e) containers and [similar commercial] vehicles for international transport of goods.]
 

[5.2.2. [Except as otherwise provided in this Agreement, [the Parties shall permit the duty-free temporary admission of the goods indicated in Article 5.2.1, solely under the following conditions:][the] Parties may subject the duty-free temporary admission of a good of the type indicated in letters (a), (b) or (c) of paragraph 1 to any of the following conditions, not being able to adopt additional conditions, when:][ No Party may condition the duty-free temporary admission of a good referred to in Article 5.2.1., other than to require that such good:]
 

a) [the good is imported by a national or resident of another Party;]
 

b) [the good is] [be] used [solely by][exclusively by the visiting person,] or under [his] [the] personal supervision [of a resident of another Party in the exercise of the], [in the performance of his] business activity, trade or profession [of that person]; 
 

c) [the good is not subject to sale, lease or transfer in any other form while it remains in the territory of the Party;] [not be sold or leased while in its territory]
 

d) [the good is accompanied by a bond that does not exceed 110% of the charges that would otherwise be owed, as the case may be, for the entry or final import, or other form of security, releasable on re-exportation of the good, except that a bond or security for customs duties shall not be required for an originating good;] [be accompanied by a security in an amount no greater than 110 percent of the charges that would otherwise be owed on entry or final importation, releasable on exportation of the article, except that a security for customs duties shall not be required for an originating good;]
 

e) [the good is] [be] capable of identification [when exported][upon its re-exportation abroad]; 
 

f) [the good is re-exported] [be exported] on the departure of that person or within [the][such other] period [of time as is reasonably] related to the purpose of the temporary [import][admission, initially up to one year from the date of importation or such longer period as a Party may establish]
 

g) [the good is][be] imported in [no greater quantity than is]reasonable [for its][quantities according to the] intended use; and 

h) [the good complies with the sanitary and phytosanitary measures and the applicable standardizing measures.]
 

i) [be otherwise admissible into the Party's territory under its laws.]]
 

[5.2.3. Except as otherwise provided in this Agreement, the Parties may subject the temporary import free of customs duty and other charges on imports of a good of the type indicated in letter (d) of paragraph 5.2.1, to any of the following conditions, not being able to adopt additional conditions, when: 
 

a) the good is only imported for the purposes of soliciting orders for goods or services that are supplied from the territory of the other Party or from another country that is not a Party; 
 

b) the good is not sold {or}{,}leased {or otherwise transferred}, and is only used for demonstrations or exhibitions while in its territory; 
 

c) the good is capable of identification; 
 

d) the good is re-exported in a period of time that is deemed to be reasonable for the purpose of temporary admission; 
 

e) the good is imported in no greater quantity than is reasonable for its intended use; 
 

f) the good is accompanied by a bond that does not exceed 100% of the duties that would be owed, where applicable, for the definite entry or import, or of any other form of guarantee, that would be refunded when the good leaves the territory, except that no bond for the customs tariffs on an originating good shall be demanded; 
 

g) the good complies with the sanitary and phytosanitary measures and the applicable standardizing measures; and 
 

h) the good does not undergo any processing or modification during the authorized period of import, except for wear and tear due to normal use.]
 

[5.2.4. [When a good is temporarily imported and does not comply with any of the conditions that a Party imposes in accordance with paragraphs 5.2.2 and 5.2.3, that Party may apply the customs duties and any other charges that would be payable on the entry or final import thereof.] [A Party may impose the customs duty and any other charge on a good temporarily admitted duty-free under Article 5.2.1. that would be owed on entry or final importation of such good if any condition that the Party imposes under Article 5.2.2. has not been fulfilled.]]
 

[5.2.5 Each Party shall adopt procedures providing for the expeditious release of the articles described in paragraph 5.2.1. To the extent possible, when such articles accompany a resident of another Party seeking temporary entry, and are imported by that person for use in the exercise of a business activity, trade or profession of that person, the procedures shall allow for the articles to be released simultaneously with the entry of that person.]
 

[5.2.6 Each Party shall, at the request of the person concerned and for reasons deemed valid by the national customs authorities, extend the time limit for temporary admission beyond the period initially fixed.]
 

[5.2.7 Each Party shall permit temporarily admitted goods to be exported through a customs port other than through which they were imported.]
 

[5.2.8 Each Party shall relieve the importer of liability for failure to export a temporarily admitted article upon presentation of satisfactory proof to customs authorities that the article has been destroyed within the original time limit for temporary admission or any lawful extension.]
 

5.3. Free trade zones [, Export, in-bond assembly and similar processing zones
 

 [Each Party will provide that when goods imported into its territory are produced in or shipped from Free Trade Zones in the territory of a Party, those goods shall not benefit from the Liberalisation Programme provided for in this[Chapter].][Products manufactured in processing zones shall benefit from the Liberalization Program if they qualify under the rules of origin established in this Agreement.]
 

[5.4. [Re-importation][Goods re-entered after repair or alteration]]
 

[[5.4.1. Parties shall authorize the duty-free re-importation of goods that [, regardless of their origin,] have been temporarily {admitted into }{exported to} the territory of another Party for repair or alteration.]
 

[5.4.2. No Party may apply customs tariffs to goods that [, regardless of their origin,] have temporarily entered the territory of the other Party to be repaired or altered. ]]
 

5.5. Other
 

[Article 6.[Duty-free entry of certain]Commercial samples [of negligible value ][and printed advertising materials]][Duty-free entry of commercial samples of {negligible}{insignificant} value or {of}{no}{insignificant} commercial value and of printed advertising materials]
 

[6.1. [Parties][Each Party] shall grant duty-free entry to commercial samples of {negligible}{no} [commercial] value[in accordance with the regulations established][and [of] 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 non-Party; or
 

(b) such advertising materials be imported in no greater quantity than is reasonable for their intended use.]][Such printed advertising materials be imported in packets containing no more than one copy of each such material and that neither such materials nor packets form part of a larger consignment.]
 

[Article 7. Customs processing [fees][service charges]]
 

[7.1. No Party shall [increase or] establish any customs processing fees [for the service provided by customs [on originating goods of the other Party]] and shall eliminate these fees [for originating goods][upon][no later than 10 years after] the entry into force of this Agreement.]
 

[ 7...X.1. Customs processing service charges are allowed in the terms of the WTO.]
 

[7.2 Notwithstanding the provisions of Paragraph 8.1, smaller economies shall eliminate such fees no later than 10 years after the entry into force of this Agreement.]
 

[Article 8. Treatment of other measures affecting the applied tariff ]
 

[8.1. No Party shall increase or establish any customs processing service charges and shall eliminate these service charges for originating goods [upon][no later than 10 years after] the entry into force of this Agreement.]
 

Article 9. Customs valuation 
 

[9.1. In the reciprocal trade among Parties, the customs valuation of goods shall be governed by the provisions of the WTO [Customs Valuation] Agreement [on Implementation of Article VII of GATT 1994.] [in the form accepted by the Parties] (4)[without having recourse to the reserves and options provided for under said Agreement.]]
 

[9.1 The Customs Valuation Agreement of GATT 1994 shall govern the customs valuation rules applied by Parties to their reciprocal trade in the form accepted by the Parties. ]
 

[9.2 Pursuant to Article 13 of the Customs Valuation Code, if, in the course of determining the customs value of imported goods, it becomes necessary to delay the final determination of such customs value, the importer of the goods shall be able to withdraw them from customs if, where so required, the importer provides a deposit or other form of security, covering the ultimate payment of customs duties for which the goods may be liable, provided for in the legislation of the Party.]
 

[9.3 Each Party shall establish appropriate documentation to certify the accuracy of the customs value, which shall be no greater than that which could reasonably be requested pursuant to Article 7 of GATT 1994. ]
 

[9.4 When a Party uses or applies estimated prices, it shall establish mechanisms to waive application of the provisions of paragraphs 9.2 and 9.3 and shall establish measures to facilitate the administration of such a scheme. ]
 

[9.5 Before a Party adopts or modifies the estimated price referred to in this Article, it shall communicate to the other Parties a description of the good, its tariff {fraction}{item} and the proposed estimated price.]
 

[9.6 The Parties shall hold consultations among themselves in order to ensure that the above does not present an obstacle to trade. ]
 

[9.7 The Parties understand that the estimated price referred to in paragraph 9.4 shall only serve as a reference for cases of valuation, and shall not be considered a base price for determining the domestic taxes of each Party or for the application of customs duties or tariffs. ]
 

Section Three. Non-tariff measures 
 

Article 10. Import and export restrictions and [licenses][prohibitions]
 

[10.1. Quantitative restrictions, price requirements and licensing][The Parties undertake to totally and immediately eliminate non-tariff barriers, with the exception of duties of Parties in accordance with Articles XX and XXI of GATT 1994, and those governed by Chapter 8 (Sanitary and Phytosanitary Measures) and Chapter 9 (Standardization and Metrology Measures and Authorization Procedures). In the case of smaller economies and in exceptional situations, they may apply temporary export restrictions or prohibitions to alleviate acute shortages. For purposes of this paragraph, temporarily means up to one year or a longer period of time agreed by the Parties. ]
 

[10.1. Except as otherwise provided in this Agreement, no][10.1.1. No] Party may adopt or maintain any prohibition or restriction on the importation of any [originating] good[s] of another Party or on the export[ation or sale for export] of any [originating] good[s] destined for the territory of another Party, except [: a) as otherwise provided in this Agreement, or][b)] in accordance with [Article XI of][the] GATT 1994 [including] [and] its interpretative notes[and other pertinent provisions in the WTO Agreement.][For such purposes, Article XI of GATT 1994 and its interpretative notes are incorporated into this Agreement and form an integral part of it.][For agricultural products, the provisions of Article 4.2 of the WTO Agreement on Agriculture shall apply.]
 

[10.2. The Parties understand that the GATT (1994) rights and obligations [incorporated][referred to] in paragraph 10.1 prohibit export price requirements and, unless permitted for the application of commitments and resolutions in relation to anti-dumping {and}{or} countervailing duties, import price requirements.]
 

[ 10.1.2. No Party shall institute or maintain:
 

a) export and import price requirements, except as permitted in enforcement of countervailing and antidumping orders and undertakings;
 

b) import licensing conditioned on the fulfillment of a performance requirement; or
 

c) voluntary export restraints not consistent with Article VI of the GATT 1994, as implemented under Article 18 of the WTO Agreement on Subsidies and Countervailing Measures and Article 8.1 of the WTO Agreement on Implementation of Article VI of the GATT 1994.]
 

[10.3. The Parties understand that the rights and obligations included in paragraph 1 of this article prohibit but are not limited to, among other things: 
 

a) quantitative restrictions on imports, according to the parameters of paragraph 1 of this article; 
 

b) minimum prices or values; 
 

c) voluntary exports restraints when they do not result from an agreement consistent with the Agreement on the Application of Article VI of the General Agreement on Tariffs and Trade of 1994, which forms part of the WTO agreement; 
 

d) granting import licenses on condition that the importer acquires national production; 
 

e) granting import licenses on condition that the importer exports; and 
 

f) granting import licenses on condition that the good to be imported includes a certain percentage of content from the importing Party.]
 

[10.[1.3.][4] In [cases where] [the event that] a Party adopts or maintains a prohibition or restriction on the import[ation from] or export[ation to][of a good[s] from or to] a non-Party [country][of a good,][no provision of] [nothing in] this Agreement shall be [interpreted in the sense of preventing it][ construed to prevent the Party] [from]:

a) [shall be interpreted in the sense of preventing the other Party from] limiting or prohibiting the importation from the territory of another Party of such good[s] of that Non-Party; or 

b) [shall permit a Party] requiring as [a] condition of export of [such good of the Party][the goods] to the territory of another Party, that the [same][good][s][same are] not [be] re-exported to the non-Party, directly or indirectly, without being consumed in the territory of [the other[another][that other] Party. ]
 

[10.[1.4.][5] In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, [on request of any of them,] the Parties, [on the request of any Party,] shall consult with a view to avoiding undue interference with or distortion of pricing, marketing and distribution arrangements in another Party.]
 

[10.6. For smaller economies and/or countries of different levels of development, paragraphs 1 to 4 shall not apply to the measures established in Annex ___.]
 

[10.1.5. Upon entry into force of this Agreement, each Party shall notify its import licensing procedures in force to all other Parties, and thereafter shall notify all new import licensing procedures and changes to import licensing procedures within 60 days of publication.]
 

[10.1.6. Notification of import licensing procedures and changes to import licensing procedures referred to in paragraph 10.1.5. shall include the following information:
 

a) list of products subject to licensing procedures;
 

b) contact point for information on eligibility;
 

c) administrative body(ies) for submission of applications;
 

d) date and name of publication where licensing procedures are published;
 

e) indication of whether the licensing procedure is automatic or non-automatic according to definitions contained in Articles 2 and 3 of the WTO Agreement on Import Licensing;
 

f) in the case of automatic import licensing procedures, their administrative purpose;
 

g) in the case of non-automatic import licensing procedures, indication of the measure being implemented through the licensing procedure; and
 

h) expected duration of the licensing procedure if this can be estimated with some probability, and if not, reason why this information cannot be provided.]
 

[10.1.7. Notification of import licensing procedures and changes to import licensing procedures referred to in paragraph 10.1.5. is without prejudice to their consistency with the rights and obligations of this Agreement.]
 

[10.1.8. Import licensing procedures and changes to import licensing procedures not notified according to paragraph 10.1.5. shall not be enforced against the Parties.]
 

[10.1.9. Paragraphs 10.1.1 through 10.1.4 shall not apply to the measures set out in Annex ___.]
 

[10.2. Remanufactured goods]
 

[10.2.1. No Party may adopt or maintain any prohibition or restriction on the importation of any remanufactured good of another Party and shall accord any remanufactured good of another Party no less favorable treatment than that provided to new like goods, regardless of whether the imported good was remanufactured by the original equipment manufacturer and regardless of whether it is offered for sale under warranty, but may require that:
 

(a) remanufactured goods be identified as such; and
 

(b) meet any standard applicable to new like goods.]
 

Article 11.[Other] administrative [procedures][fees and formalities][Other Charges that affect reciprocal trade.]
 

[11.1. Each Party shall ensure, in accordance with Article VIII:1 of the GATT 1994 and its interpretive notes, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charge applied consistently with Article III:2 of the GATT 1994, and antidumping and countervailing duties applied pursuant to a Party's domestic law) imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic products or a taxation of imports or exports for fiscal purposes.]
 

[11.1.1 If as a result of the implementation and administration of a registry of importers, any Party considers that the access of a good of that Party to the territory of the Party applying the measure is being blocked or impeded, both Parties shall hold consultations in order to find a mutually satisfactory solution.]
 

[11.1.2 Each Party shall ensure that the implementation, administration and publication of customs-related measures are consistent with the provisions of this Agreement, its legislation, and the WTO Agreement.]
 

[11.1.3 Where a Party envisages limiting customs clearance for a given type of goods to a specific customs location, it shall consult with the other Parties to ensure that such limitations do not affect their interests pursuant to this Agreement. The Party establishing such limitations shall permit the admission of the goods to its territory through any legally established border points, in order that the goods may arrive at the specific customs location for the respective customs clearance to be effected, provided that the appropriate customs formalities have been completed.]
 

[11.2. No Party may require consular transactions, including related fees and charges, in connection with the importation of any good of another Party.] [In the case of smaller economies, they shall eliminate such fees no later than 10 years after the entry into force of this Agreement.]
 

[11.3. Upon entry into force of this Agreement, each Party shall notify its current fees and charges imposed on or in connection with importation or exportation to all other Parties, and thereafter shall notify all new fees and charges and changes to fees and charges within 60 days of publication.]
 

[11.4. Notification of fees and charges imposed on or in connection with importation or exportation referred to in paragraph 11.3. shall include the following information:
 

a) description of the fee or charge, including the amount of the fee or charge and the nature of services rendered;
 

b) contact point for information;
 

c) administrative body(ies) that collect(s) the fee;
 

d) date and name of publication where the fee or charge is published;
 

e) where and how the fee or charge is collected; and 
 

f) the party liable for payment.]
 

[11.5. Notification of fees and charges and changes to fees and charges imposed on or in connection with importation or exportation referred to in paragraph 11.3. is without prejudice to their consistency with the rights and obligations of this Agreement.]
 

[11.6 Fees and charges and changes to fees and charges not notified according to paragraph 11.3. shall not be enforced against the Parties.]
 

[11.7. From the date of entry into force of this Agreement, each Party shall ensure that a current list of its fees and charges imposed in connection with importation or exportation is published and made available on the Internet.]
 

Article 12. Export taxes 
 

[12.1. No Party shall adopt or maintain any tax, duty or other charge on the export of [a][any] good to the territory of another Party, [unless such tax[es]{or} {,} dut[y][ies] [or charge is] {are} {also} adopted or maintained on: [(a) exports of any such good to the territory of all other Parties; and (b) any such good when destined for domestic consumption][such goods when they are to be used for domestic consumption.]]] [No Party shall adopt or maintain any tax, duty or other charge on the export of any good to the territory of another Party, unless such tax or duty or charge is applied temporarily to alleviate acute shortages. For purposes of this paragraph, "temporarily" means up to one year, or a longer period agreed by the Parties.]
 

[12.2. Each Party may adopt or maintain a tax, duty or other charge on the export of food products to the territory of another Party if such tax, duty or other charge is applied temporarily to alleviate an acute shortage of such food product. For purposes of this paragraph, "temporarily" means up to one year, or a period agreed by the Parties not exceeding one year.]
 

[12.3. Notwithstanding the contents of 12.1, the Parties reserve the right to impose export taxes on the goods listed in Appendix 12.]
 

Article 13. Other [restrictive] export measures 
 

[Article 14. Dealer protection laws]
 

[No Party may maintain or introduce legislation or practice relating to the sale, offering for sale, purchase, transportation, distribution or use of originating goods imported into the territory of that Party which accords greater protection to local distributors of local suppliers than to local distributors of foreign suppliers.]
 

Section Four. Other measures
 

[Article 15.] 
 

[Distinctive products]
 

[15.1. The Parties recognize "seco" and "molas" as distinctive products of Panama. Consequently, the Parties shall not permit the sale of any product under the names "seco" or "mola", unless they were produced in Panama in accordance with that country's laws and regulations.]
 

[15.1. Parties shall recognize Bourbon Whiskey and Tennessee Whiskey, which is a straight Bourbon Whisky authorized to be produced only in the State of Tennessee, as distinctive products of the United States. Accordingly, Parties shall not permit the sale of any product as Bourbon Whiskey or Tennessee Whiskey, unless it has been manufactured in the United States in accordance with the laws and regulations of the United States governing the manufacture of Bourbon Whiskey and Tennessee Whiskey.]
 

[The Parties shall recognize Tequila and Mezcal as distinctive products of Mexico. Accordingly, the Parties shall not permit the sale of any product as Tequila or Mezcal, unless it has been manufactured in Mexico in accordance with the laws and regulations of Mexico governing the manufacture of Tequila and Mezcal.]
 

[Other]
 

Section Five. Institutional provisions
 

[Article 16. Committee on Trade in Goods] 
 

[16.1. The Parties shall create a Committee on Trade in Goods, made up of representatives of each Party, which shall meet at least once a year or at the request of one of the Parties.]
 

[16.2. The Committee shall be established within six months of the Agreement coming into force. Any decision adopted by the Committee shall be by [common agreement] [consensus].]
 

[16.3 The Committee shall have the following duties: 
 

a) To monitor the application and administration by the Parties of the [principles][rights and obligations ] contained in this [Chapter];
 

b) To coordinate the activities and ensure the proper functioning of the Non-Agricultural Goods Sub-committee.

c) To examine the proposals regarding [accelerated] tariff reduction that are submitted by the Parties.
 

d) To assess any proposed modification, amendment or addition to the relevant provisions in order to improve the application of what is set forth in this [Chapter] and to recommend the pertinent changes to the Commission.
 

e) To coordinate the exchange of commercial information between the Parties. 
 

f) To submit an annual report to the Commission regarding its activities.]
 

[16.4. The Parties shall establish an Agricultural Sub-committee and a Non-Agricultural Goods Sub-committee, whose duties shall be: 
 

a) To act as a consultation panel for issues relating to the market access of agricultural and non-agricultural products. 
 

b) To recommend to the Committee the adoption of measures that encourage free trade between the Parties.
 

c) To meet at least once a year or at the request of any of the parties or the Committee. 
 

d) To submit to the Committee any issue over which they have not reached an agreement within sixty (60) days of when they became aware of said issue; and 
 

e) To submit an annual report to the Committee on the agreements reached and activities carried out.]
 

[Article ___. Publication and Notification] (5)
 

[[16.5][17.1] Publication and notification. Each Party shall identify, in terms of the tariff classification items and their related nomenclature {in accordance with their respective tariffs}{measures}, restrictions or prohibitions on the import or export of goods for reasons of national security, public health, preservation of flora or fauna, environment, sanitary or phytosanitary standards, labeling, technical regulations, international commitments, requirements of public order or any other regulations.]
 

[a) Prior to official publication {in accordance with the above}, no Party shall apply any {general} measure adopted by that Party which has the effect of increasing a customs tariff or other charge against the importation of goods of the other Party by virtue of established and uniform usage, or which imposes new or more onerous {measures,} restrictions or prohibitions on the importation of goods of the other Party or the transfer of funds for same.
 

[b) In view {of the debilitating effects of}{that} sudden devaluations{,}{and} changes in exchange systems {and monetary policies}{on}{may undermine the} trade flow{s} and {the} initiative{s}{for the establishment of}{to establish a} free trade area{s}, the Parties undertake to notify each other whenever such events occur.]
 

[Article 17. Definitions]
 

[17.1. The following definitions shall be used for the purposes of this [Chapter]:]
 

[advertising films:[recorded visual media, with or without soundtrack, that essentially are made up of images that show the nature or functioning of goods or services being sold or leased by a person established or resident in the territory of one of the Parties, provided that the films are suitable to be shown to potential clients, but not for general broadcast. They are to be imported in packets which contain no more than one copy of each film and that are not part of a larger consignment.]]
 

[[commercial] samples [of negligible][or] [without commercial] value: [commercial samples having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount in the currency of another Party, or so], [[those that are] marked, broken, perforated or [otherwise treated that they are unsuitable for sale or for use except as commercial samples;][that have been treated in a way that disqualifies them from being sold or from any use other than as samples.]]]
 

[consular transactions: requirements that goods of a Party intended for export to the territory of another 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, shipper's export declarations or any other customs documentation required on or in connection with importation.]
 

[consumed: (a) actually consumed, or (b) further processed or manufactured so as to result in a substantial change in value, form or use of the good or in the production of another good.]
 

[customs duties:[the duties that would be applicable to a good that is imported to be used in the customs territory of{one of} the Parties if the good were not exported to the territory of the other Party;][a tax, duty or levy on imports and charges of any kind][any customs or import duty and a charge of any kind][imposed in connection with the importation of a good, including any form of surtax, surcharge or markup in connection with such importation, except:
 

a) Any charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994], [or the equivalent provision in a successor agreement to which the Parties are signatories][in respect of like, directly competitive or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
 

b) any antidumping or countervailing duty that is applied pursuant to a Party's domestic law; and
 

c) any fee or other charge in connection with importation commensurate with the cost of services rendered.],[and
 

d) any premium offered or collected on imported goods under all systems of tendering, for the administration of import volume restrictions or either import or preferential tariff quotas.]]
 

[deferral or suspension of tariffs programs:[the measures that govern foreign trade zones, temporary importation under, bonded warehouses, inward processing programs and other export processing programs, among others.]]
 

[duty-free: free of customs duty;]
 

[printed advertising materials: those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials and posters, that are used to promote, publicize or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge.],
 

[fungible goods:[goods that are interchangeable in accordance with the definition in [Chapter] ___ (Rules of Origin);]]
 

[goods used for display or demonstrations: [goods used for exhibitions or demonstrations, including their component parts, ancillary apparatus and accessories;]]
 

[goods imported or brought in for sports purposes: [sport equipment for use in competitions, sports events or training in the territory of the Party to which it is imported;]]
 

[goods of a Party: domestic products as these are understood in GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party.]
 

[identical or similar goods: [those which are completely equal, including their physical characteristics, quality and commercial standing, together with goods that, although they are not completely equal, have similar characteristics and composition, which allow them to fulfill the same function and be commercially interchangeable.]]
 

[import licensing: administrative procedures requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party.]
 

[material:[a material in accordance with the definition in [Chapter] ___ (Rules of Origin);]]
 

[performance requirement: a requirement that:
 

a) a given level or percentage of goods be exported;
 

b) domestic goods or services of the Party granting a waiver of customs duties or an import license be substituted for imported goods;
 

c) a person benefitting from a waiver of customs duties or an import license purchase other goods in the territory of the Party granting the waiver of customs duties or the import license, or accord a preference to domestically produced goods;
 

d) a person benefitting from a waiver of customs duties or an import license produce goods in the territory of the Party granting the waiver of customs duties or the import license; or
 

e) relates in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows.]
 

[remanufactured goods: goods that have been cleaned, tested and examined for wear, fitted as necessary with replacement component parts, retested and repackaged such that they function in the original manner intended.]
 

[repair or alteration: does not include an operation or process that either destroys the essential characteristics of a good or creates a new or commercially different good. For purposes of this definition, it shall be understood that an operation or process which forms part of the production or assembly of an unfinished good, in order to convert it into a finished good, does not constitute the repair or alteration of the unfinished good; a component of a good is a good which can {by}{be} subject to repair or modification.]
 

[CHAPTER ON] SAFEGUARD MEASURES] (6)
 

[Part I. Hemispheric Safeguards] [Part I. FTAA Safeguards]
 

Article 1. Scope of Application
 

1.1 [The Parties][A Party] may, [on a temporary and exceptional basis and on the terms set forth in this [Chapter],] apply [a] [bilateral][plurilateral][hemispheric] [FTAA] safeguard [measures] [measure under this Part only] pursuant to the terms of this [Chapter], on imports of [originating][products][goods][benefiting][benefitting] from the trade liberalization program under this Agreement, [at any time that the aforementioned Agreement is in force][only during the transition period] [ (7)] [only during the tariff elimination period]. [Such a measure shall be applied to all imports of such goods originating in the territories of the Parties to this Agreement.][Said measure shall be applied to the imports of a Party to this Agreement when its imports considered individually represent a substantial share of total imports and contribute significantly to the injury caused to the domestic production.]
 

[1.2 [The States party to]A customs union [duly accredited as such] may apply safeguard measures as a single entity or on behalf of a party State:
 

a) As a single entity, in which {case} the requirements for the determination of serious injury or threat of serious injury shall be based on the conditions existing in the customs union as a whole.
 

b) On behalf of one of its Party States, in which case the requirements for the determination of serious injury or threat of serious injury shall be based on the conditions existing in the Party State of the customs union and the measure shall be limited to that Party State.]
 

[1.3 A Party may adopt or maintain a [bilateral] [hemispheric] [FTAA] safeguard measure subsequent to the termination of the [exemption][transition] period, provided that the purpose is to deal with cases of serious injury or threat of serious injury that might arise due to the application of this Agreement [and only when the exporting Party expressly authorizes it].]
 

[1.4 Safeguard measures shall not be applied to a product [originating] in a Party when that Party's share of total imports of the product in question does not exceed [....][5] or [....][percent in the case of the smaller economies and/or economies in different levels of development.]][Safeguard measures shall not be applied to originating goods from a Party when that Party's share of imports of originating goods does not exceed [....] per cent or [....] per cent in the case of smaller economies.]
 

[1.5 In order to apply plurilateral safeguard measures, an investigating authority shall follow the provisions of this[Chapter] and, in addition, the provisions of Article XIX of the GATT 1994, the Agreement on Safeguards and the respective legislation.]
 

Article 2. Conditions for Application
 

2.1 [The Parties][A Party] may [adopt and ] apply [safeguard measures][a safeguard measure] where, [as a consequence of unexpected developments and][as a result of tariff preferences accorded under this Agreement,][as a result of the tariff reduction program] the imports of [an originating][a][product] [good][from [another Party] ] [the other Parties] have increased {[at a rate]} {in such an amount} , [in absolute terms,][in relation to domestic production] [in absolute terms or [ [in relation to]{relative to} domestic production (8)] {[relative to domestic production]},][in absolute terms and in relation to domestic production,][and] [or] under conditions such as to{[constitute a substantial] cause [of] serious injury or threat thereof to the}{[cause or threaten to cause] [constitute a substantial cause of] serious injury [or threat thereof]} tothe domestic {production}{industry} producing like or directly competitive goods. [In determining whether imports have increased, a Party shall cumulatively consider imports from the territories of all other parties to this Agreement.][that has determined that they individually represent a substantial share of total imports and that they significantly contribute to the injury caused to the domestic production.]
 

[An FTAA Member may adopt and apply, following prior investigation, safeguard measures to the imports of a product that benefits from the trade liberation program established in this Agreement, when the imports under the preferential tariffs for this product have increased {[at a rate]} {in such an amount}, in absolute terms or in relations to domestic production, and under conditions such as to cause serious injury or threat thereof to the branch of domestic industry of like or directly competitive goods.]
 

[2.2 Such measures may [only] [be adopted][be applied][when [strictly] necessary and][only] to the [degree][extent] necessary to [counteract][prevent or remedy] [prevent or repair] the serious injury, [or threat thereof], and facilitate the adjustment of the [branch of] domestic production affected.]
 

[2.3 [For the purpose of][Before imposing a][definitive] safeguard measure[s], each Party [shall ensure that the[domestic production [or branch of production]][domestic branch of production][benefiting][benefitting] from the measure present an][shall examine and determine the feasibility of the] adjustment plan [or [a] plan to overcome the circumstances alleged to cause serious injury or the threat of serious injury] [, provided that these circumstances are variables that can be controlled by the industry involved][presented by the branch of domestic industry]. The Party that applies the measure shall provide the other Parties a non-confidential summary of the plan[and a duly founded report on its determination].]
 

Article 3. Nature of the Measures
 

3.1 [Applicable] Safeguard measures shall [only] consist of tariff measures [or of quantitative restrictions]. [Neither tariff rate quotas nor quantitative restrictions shall be a permissible form of safeguard measure.]
 

3.2 Tariff [-based] measures shall consist of: 
 

a) the suspension of further reductions of any rate of duty provided for under this Agreement for the good; [the suspension of the increase in preferences programmed in the Agreement] or 
 

b) an increase in the rate of duty [the reduction or suspension of the agreed margin of preference] for the good to a level not to exceed the lesser of:
 

i. the most-favored nation applied rate of duty in effect [applied] at the time the measure is[taken][applied]; [or]
 

ii. the most-favored nation applied rate of duty [based on paragraph .... of Article....]in effect on the day immediately preceding the date of entry into force of this Agreement. [; or]
 

[c) in the case of a duty applied to a good on a seasonal basis, increase the rate of duty to a level not to exceed the MFN applied rate of duty that was in effect on the good for the corresponding preceding season or for the corresponding season immediately preceding the date of entry into force of this Agreement, whichever is less.]

[3.3 [When the safeguard measure consists of a quantitative restriction] The preference applicable at the time the safeguard measure is adopted [this] shall remain in place for a quota of imports, which shall be the average of imports made over the last [....][three] representative years [for which statistics are available, unless there is clear justification][preceding][corresponding to] the period during which it was determined there was serious injury or a threat of serious injury, unless [the Parties involved agree that there exists]the need to set a different level so as to prevent or remedy serious injury [is proven].]
 

Article 4. Period of Application of the Measures
 

[4.1 Safeguard measures may not be applied before the preference has been in force for one year.]
 

4.2 Safeguard measures may be applied for a maximum period of [....][one year][and ., for the smaller economies and/or economies in different levels of development] [including the period in which provisional measures may have been in force] [three years, which shall include the period of the application of any provisional measure. Regardless of its duration, such measures shall terminate at the end of the transition period.]
 

[In order to facilitate adjustment in a situation where the expected duration of a [hemispheric][bilateral] safeguard measure is over one year, the Party applying the measure shall progressively liberalize it at regular intervals during the period of application.]
 

[4.3 Safeguard measures may be extended [only once] for [a][an equal and consecutive] period of [....][one year],[and [for a period of] for the smaller economies and/or economies in different levels of development], when it has been determined that, in accordance with the procedures set out in this [Chapter], they continue to be necessary to prevent or remedy serious injury and that there is evidence that the branch of domestic industry [is in the process][has complied with the program] of readjustment.]
 

[4.4 When the safeguard action is terminated, [the rate of duty][margin of preference] that will apply is the rate that would have been in effect on that date according to the [trade liberalization] [ tariff elimination] program.]
 

[The following conditions and limitations shall be observed in the procedure that may result in the application of a safeguard measure, pursuant to the provisions of Article 2:]
 

a) [that one Party shall notify the other Party, without delay and in writing, of the initiation of the procedure that could result in the application of a safeguard measure on a good originating in the territory of the other Party;]
 

b) [All safeguard measures shall enter into effect by no later than one (1) year after the date on which the procedures are initiated;]
 

c) [The period during which a provisional safeguard measure is applied shall be computed in order to determine the duration of the definitive safeguard measure established in paragraph 2;]
 

d) [Provisional measures that do not become definitive shall be excluded from the limitation stipulated in paragraph 5;]
 

e) [During the extension period of a safeguard measure, the tariff rate must be phased out until it reaches the corresponding rate, in accordance with the trade liberalization program; and]
 

f) [When the period of application of the safeguard action is terminated, the tariff rate that will apply is the rate that would have been in effect on that date according to the trade liberalization program.]
 

[On the termination of a hemispheric safeguard measure, the rate of duty shall be no higher than the rate that, according to Schedule .... of this Agreement, would have been in effect one year after the initiation of the measure. Beginning on January 1 of the year following the termination of the measure, the Party that has applied the measure shall:
 

a) apply the rate of duty set out in Schedule .... of this Agreement as if the hemispheric safeguard measure had never been applied, or
 

b) eliminate the tariff in equal annual stages ending on the date set out in Schedule .... of this Agreement for the elimination of the tariff.]
 

[4.5 Regarding a same good imported under the [trade liberalization] [tariff elimination] program, none of the Parties may apply safeguard measures [against the same good][more than once during the transition period][unless a period of .... has elapsed since the termination of the previous measure][more than once during the transition period, unless the [importing][exporting] Party[ies] expressly authorize[s] it and until at least a period not less than that of the duration of the measure elapses][ more than . occasions during the transition period. A safeguard measure may be applied on . occasions, provided at least a period equivalent to half of the period during which the safeguard measure would have been applied for the first time has elapsed].]
 

[4.5 The {developing countries}{smaller economies} may apply safeguard measures to the importation of a product that has been subject to such a measure, provided that a period equal to that of the previously imposed measure has elapsed.]
 

[4.6 The maximum duration of a safeguard measure will not exceed [{of} ....][two years], including the period of application of the [potential provisional measure and/or the][possible] extension.]
 

[Part II. Global Safeguards] (9)
 

[Part III. Procedures and Common Provisions]
 

[Article 5. Investigation Procedures and Transparency Requirements]
 

[5.1 A Party may only [adopt][apply] a safeguard measure on the imports of [another Party][other Parties] [a specific product] after an investigation has been carried out in conformity with the procedures established in this[Chapter]. [A Party may apply a safeguard measure only following an investigation by the competent authorities of that Party pursuant to procedures previously established and notified to the other Parties.]]
 

[5.2 Each Party shall [establish or maintain transparent, effective and equitable procedures for the adoption and][ensure the] consistent, impartial and reasonable [application of the safeguard measures in their legislation.][administration of its laws, regulations, decisions, and rulings governing all proceedings under this [Chapter].]]
 

[5.3 Each Party shall entrust the investigation to determine serious injury or threat of serious injury to the competent authority it has designated for that purpose. The purpose of the investigation shall be to:
 

a) assess the volume and conditions in which the imports of the good in question take place;
 

b) confirm the existence of serious injury or threat of serious injury to the branch of domestic industry; and
 

c) confirm the existence of a [direct] causal relationship between the increase in the imports of the good and the serious injury or threat of serious injury to the branch of domestic industry.]
 

[5.3 In the investigation to determine whether increased imports constitute a substantial cause of serious injury or threat thereof to a domestic industry under the terms of this Agreement, the competent authorities shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of that industry, in particular, the rate and amount of the increase in imports of the good concerned in absolute and relative terms, the share of the domestic market taken by increased imports, changes in the level of sales, production, productivity, capacity utilization, profits and losses, and employment.]
 

[The determination referred to in the preceding subarticle shall not be made unless this investigation demonstrates, on the basis of objective evidence, the existence of the causal link between increased imports of the good concerned and serious injury or threat thereof.]
 

[5.4 Investigations in the realm of safeguards may be initiated [ex officio or] at the request of a party. [If] the petition for an investigation [is made at the request of a party, the petition] shall be made by [or on behalf of][companies or entities that represent] the branch of domestic industry of the similar or directly competitive good. [Safeguard investigations may be initiated at the request of companies or the entities that represent them.] The application will be considered to have been made by the branch of domestic industry or on its behalf when it is supported by domestic producers whose combined production represents more than [....][50] per cent of the total production of the like or directly competitive good.]
 

[5.4 An investigation may be instituted on the basis of a petition or complaint filed on behalf of a domestic industry. Such petition or complaint shall provide a description of the imported good concerned and such information with respect to each of the factors as is reasonably available to the petitioner or complainant. Simple assertion, unsubstantiated by relevant evidence, cannot be considered sufficient to meet the requirements of this paragraph. A Party may also institute a proceeding on its own motion or request the competent authorities to conduct a proceeding.]
 

[A public version of any petition or complaint, with any confidential information deleted or summarized in accordance with Article .... of this [Chapter], shall promptly be made available for public inspection upon being filed.]
 

[5.5 The petition should contain information on the petitioner and his/her representativeness, a description of and information on the good concerned, data on imports, data on domestic output, data demonstrating injury or threat of injury, and cause of the injury or threat of injury [and an adjustment plan proposal].]
 

[5.5 The request to initiate an investigation must include the following data:
 

a) description of the goods: name and description of the imported good in question, the tariff subheading under which it is classified and the current tariff treatment, as well as the name and the description of the like domestic or directly competitive good;
 

b) representivity;
 

i) the names and domiciles of the entities that submit the request, as well as the location of the establishments where the domestic good in question is produced;
 

ii) the percentage of the domestic production of the like or directly competitive good of such entities and the reasons that lead them to state that they are representative of the domestic industry; and
 

iii) the names and location of all the other domestic establishments where the like or directly competitive good is produced.
 

c) import figures: importation data for each of the complete three (3) years immediately prior to the initiation of the procedures on the application of a safeguard measure, which constitute the basis for the statement that the good in question is imported in increasingly larger amounts, whether in absolute or relative terms vis-à-vis domestic production, as the case may be;
 

d) figures on domestic production: data on total domestic production of the like or directly competitive good, for each of the last complete three (3) years immediately prior to the initiation of the procedures on the application of a safeguard measure;
 

e) data that demonstrates the injury or threat of injury: quantitative and objective indicators that denote the nature and scope of the injury caused or the threat of injury to the domestic industry in question, such as those that show changes in the levels of sales, prices, production, productivity, use of the installed capacity, market share, profits or losses and employment;
 

f) cause of injury: a list and description of the presumed causes of the injury or threat of serious injury, and a summary of the basis for alleging that the increase in imports of that good, with relation to the domestic industry, is the cause of serious injury or threat of serious injury, supported by pertinent information; and
 

g) criteria for inclusion: the quantitative and objective information that indicates the share of imports from the territory of another Party, and considerations of the applicant on the degree to which such imports make a major contribution to the serious {damage}{injury} or threat of serious {damage}{injury}.]
 

[5.6 When carrying out the investigation to determine whether the increase in [preferential-tariff] imports [stemming from the tariff elimination program] has caused or threatens to cause serious injury to the [area][branch] of domestic production, the competent authority shall evaluate all {relevant}{objective} and quantifiable factors relating to the situation of the affected branch of domestic industry, particularly the following:
 

a) the rate and quantity of the increased imports of the product in question, in [absolute] and relative terms;
 

[b) the ratio between preferential-tariff imports provided for in this Agreement and non-preferential tariff imports of any other origin, and the increase ratio;]
 

c) the portion of the domestic market absorbed by the increase in imports;
 

d) changes in the level of sales, production, productivity, use of installed capacity, profits and losses, employment, domestic prices and market share;
 

[e) specific conditions under which the imports were made that contribute to the injury or threat of injury; and]
 

f) other economic factors, such as changes in prices and inventories, and the ability of firms in the industry to generate capital.]
 

[5.7 In order to determine the appropriateness of the safeguard measures, the existence of a {clear}{direct} causal link between increased imports of the good concerned and serious injury or threat of serious injury to domestic production must be demonstrated, on the basis of objective evidence.]
 

[5.8 If there are factors other than the increased importation of the goods that simultaneously injure or threaten to injure a branch of domestic industry, the injury may not be attributed to imports made under preferential tariffs.]
 

[5.9 The interested parties [who demonstrate that they may, in fact, be affected by the findings of the investigation and have special reasons for being heard] shall have the opportunity to participate in the investigation to present evidence, state their opinions, reply to communications from the other party and, moreover, present their opinions as to whether or not the application of a safeguard measure would be in the public interest. [In that regard, they should accredit their legal representatives in writing.] To this end, the competent authority [shall][may] hold hearings.]
 

[5.9 In the course of each investigation, the competent authority shall hold a public hearing at which the interested parties shall have an opportunity to appear in person or through counsel or other representatives, and to present and address evidence, respond to the allegations, and express their views.]
 

[5.9' Except under critical circumstances and when it is a question of global safeguard measures for perishable agricultural goods, before issuing an affirmative ruling in a procedure to adopt safeguard measure, the investigating authority shall grant sufficient time to gather and examine the pertinent information, hold a public hearing and give all interested parties the opportunity to prepare and express their points of view.]
 

[5.9''During the course of each procedure, the investigating authority:
 

a) without prejudice to the provisions of the legislation of the Party, after giving reasonable notice, shall hold a public hearing so that importers, exporters, consumer associations and other interested parties may appear in person or through representatives, to present evidence and be heard, in relation to the serious injury or threat of serious injury and the appropriate remedy; and
 

b) shall give all interested parties the opportunity to appear at the hearing and question the interested parties who present arguments during the hearing.]
 

[5.10 All information that is confidential due to its nature or which is supplied on a confidential basis, subject to prior substantiation of this condition, shall be treated as such by the competent authorities. The interested parties supplying confidential information shall be required to furnish non-confidential summaries thereof or, if they contend that said information cannot be summarized, they should state the reasons why it is not possible to submit such summary. However, if the competent authorities conclude that a request for information to be considered confidential is not justified, and if the interested party does not want to publish it or authorize its disclosure in general or in abridged terms, the authorities through a duly founded and justified decision, may not to take this information into account, {unless they are offered convincing proof }{unless it can be convincingly demonstrated} by a proper source that the information is accurate.]
 

[5.10 Any information which is by nature confidential or which is provided on a confidential basis shall, upon cause being shown, be treated as such by the competent authorities. Such information shall not be disclosed without permission of the party submitting it. Parties providing confidential information may be requested to furnish non-confidential summaries thereof or, if such party indicates that such information cannot be summarized, the reasons why a summary cannot be provided. However, if the competent authorities find that a request for confidentiality is not warranted and if the party concerned is either unwilling to make the information public or to authorize its disclosure in generalized or summary form, the authorities may disregard such information unless it can be demonstrated to their satisfaction from appropriate sources that the information is correct.]
 

[5.11 [A public file shall be established.] Interested parties may access the information in the administrative records of the investigation, except in the case of confidential information.[, in sufficient time to defend their interests.]]
 

[5.12 The importing Party shall publish in its official journal [or other daily newspaper of national circulation][without prejudice to its publication in other daily newspapers of national circulation]: 
 

a) [rulings][notices] on the opening [or][and] the conclusion of a [procedure tending to the adoption of a{[definitive]} safeguard measure][safeguard investigation] [. The ruling to initiate the procedure must be published within thirty (30) days, counting from the submission of the request];
 

b) [the ruling on the adoption of a][notice of the decision to apply a provisional or definitive]{definitive} safeguard measure [and of a provisional safeguard measure][and the amount and duration of the measure; and];
 

[c) [the ruling on][notice of a proceeding relating to] the extension of [the][a] safeguard measure [and of any decision to extend a measure].]]
 

[The information published [in the notice] shall contain a summary of the criteria that served as the basis for the corresponding ruling.]
 

[5.13 The competent authority will publish a report that sets out its findings and reasoned conclusions on all pertinent issues of law and fact. The report will be promptly notified to the other Party.]
 

[5.14 Disagreements between the Parties concerning the merits and justification for the application [or extension] of a safeguard measure shall be analyzed and settled following the procedures established under the framework of this[Agreement][Chapter], based on information and evidence [sent to][obtained by] the competent authority [or any others they deem necessary][during the investigation].]
 

[5.15 The Parties shall guarantee that the decisions of the competent authorities issued in accordance with the stipulations of this [Chapter] may be subject to judicial or administrative review, as laid down in their internal legislation.[Negative rulings on the existence of serious injury or threat of serious injury may not be modified ex oficio by the investigating authority. The investigating authority that is authorized by domestic legislation to carry out these procedures shall be given all the means needed to carry out its duties.]]
 

[Article 6. Notification and Consultations]
 

[6.1 The importing Party shall give written notification [to the other Party]without delay of [its intention to start][the initiation of] an investigation in the realm of safeguards. The notification shall be made in writing by the competent authority in [a period of .][the next day][[after][starting on the day of] publication][at the initiation of the investigation]. It shall contain [the main features of the facts under investigation, such as][sufficient antecedents that support the [application of the measures][the opening of the investigation], including]:
 

[a) the names and available addresses of the applicants, their share in the branch of domestic industry of the good, and the reasons leading them to claim that they are representatives of the branch of domestic industry;]
 

[b) a clear comprehensive description of the good subject to the proceeding, including its tariff classification, the current tariff treatment, as well as a description of the like or directly competitive good;]
 

[c) the import figures [corresponding to each of the .... most recent years] supporting the argument that this good is being imported in ever increasing quantities, [either in absolute terms or relative to domestic production;]]
 

[d) the data on the branch of domestic industry of the like or directly competitive good [corresponding to the last .... years], ]
 

e) the data that [demonstrates][was taken into consideration to demonstrate the existence of] the serious injury or threat of serious injury caused by the imports to the sector in question, in accordance with the data referred to in subparagraphs c) and d); 
 

[f) an enumeration and description of the alleged causes of serious injury or threat of serious injury, based on the information required pursuant to subparagraphs a) through d) and a summary of the basis for claiming that the increase in imports of the good, [in absolute terms or relative to the domestic production], is the cause thereof;]
 

g) the time limit for the interested parties to be able to submit evidence and set forth their opinions in writing, so that they may be taken into consideration during the investigation; [and]
 

h) the time limit to hold consultations.
 

[i) the data of the applicable rules]
 

[j) the date and place of the public hearing;]
 

[k) the place where the request and other documents presented during the procedure can be inspected {be included}; and ]
 

[l) the name, domicile and telephone number of the office where more information can be obtained.]]
 

[6.1 The importing Party shall promptly give written notification to the other Parties of the institution of a safeguard investigation. The notification shall include the following information:

a) A description of the imported good(s) that is the subject of the investigation and the HTS number(s) under which it is believed to {enter}{be recorded};
 

b) If the investigation is instituted on the basis of a petition or complaint, the name of the entity or person filing the petition or complaint;
 

c) The place where the non-confidential version of the petition or complaint may be inspected and how an interested party may obtain a copy;
 

d) The date, time, and place of the public hearing, the deadlines for filing briefs and other submissions in connection with the investigation, and the likely date on which the decision will be made and announced and a public version of competent authority's report made available to the other Parties.]
 

[6.2 At any stage during the procedure, the Party receiving the notice may request the additional information it deems necessary from the Party that opened the investigation. [The Party that is conducting the investigation shall, if so requested by the Party whose goods are the object of the investigation, give said Party access to the public record, including the non-confidential summary of the confidential information used to initiate the investigation or during the course of same.]]
 

[6.3 [The Parties][A Party] may not [adopt final measures ][apply a final measure][initiate an investigation] without having afforded an opportunity for consultation, the objective of which shall be a mutual knowledge of the facts, the exchange of opinions and possible clarification of the problem that has arisen. The time period for such consultations shall be .... .]
 

[The Parties may not apply or extend a safeguard measure without affording suitable opportunity for consultation in order to determine compensation. The main objective of the consultations shall be to arrive at an understanding regarding the maintenance of a level of concessions substantially equivalent to the measure applied.]
 

[Countries with smaller economies shall not grant any compensation.]
 

[6.3' Without prejudice to the obligation to provide adequate opportunity to hold consultations, the provisions on consultations do not aim to keep the authorities of any Party from proceeding without delay to initiate an investigation or to formulate preliminary or definitive, positive or negative determinations, nor to keep them from applying measures in accordance with the provisions of this [Chapter].]
 

[6.4 The [ruling by which a decision is made to adopt or extend][determination to apply] a safeguard measure shall be published [as corresponds] and the other [party][Parties] shall be notified within a period of .... The notice shall contain [the findings of the investigation and the reasoned conclusions regarding all the pertinent questions of fact and law, including a description of]:
 

[a) evidence of the existence of serious injury or threat of serious injury;]
 

b) a precise description of the [product][good] in question (including its tariff classification according to the HS);
 

c) description of the measure proposed or [adopted][applied];
 

d) date of its entry into force and its duration; [and]
 

[e) when applicable, the criteria and objective information that shows that the circumstances laid down in this [Chapter] for the application of a measure [to the other Party] are met; [the time limit for holding consultations [to determine compensation]; and in the case of extension of a measure, information should also be supplied to show that the branch of domestic industry in question is in the process of readjustment.] [has complied with the adjustment program] [;]]
 

f) [the domestic industry that has suffered or is threatened by serious injury.]]

[6.5 If a [definitive] safeguard measure is not called for, the investigation shall be closed, [the records thereof shall be filed,][and the temporary measures imposed as provided for in Article .... of this [Chapter] shall be lifted, order shall be issued for the return of amounts {with the corresponding interest} deposited for {the}{such} purpose or the respective bonds shall be released, as the case may be].]
 

[6.6 If the importing Party determines that the motives that gave rise to the application of the bilateral safeguard measure continue to exist, it shall notify the competent authority of the other Party of its intention to extend the safeguard measure for at least ninety (90) days {before it expires}{prior to its expiration}, and it shall provide the evidence that the causes that led to its adoption persist, with a view to initiating the respective consultations, which shall be conducted pursuant to the stipulations of this article. The notifications of extension and of compensation shall be made in the terms provided in this {article}, prior to the expiration of the measures adopted.]
 

[Article 7. Provisional Safeguards]
 

[7.1 In critical circumstances, where any delay could cause damage that would be difficult to remedy, provisional safeguard measures can be adopted pursuant to a preliminary determination of the existence of clear evidence that the increase in imports under preferential tariffs has caused or threatens to cause serious injury.]
 

[7.1 In critical circumstances where delay would cause damage to a [branch of a] domestic industry producing a like or directly competitive good which it would be difficult to repair, a Party may apply a provisional safeguard measure pursuant to a preliminary determination that there is clear evidence that imports have increased as a result of the reduction or elimination of a duty pursuant to this Agreement and are [causing or threatening to cause serious injury][a substantial cause of serious injury, or threat of serious injury, to the domestic industry].]
 

[The Parties shall not apply provisional measures to smaller economies.]
 

[7.2 A provisional safeguard measure may only be applied {until}{after} a period of . has elapsed {following}{from the}[initiation of the investigation] receipt of the request from the petitioner.
 

[7.3 The duration of a provisional safeguard measure may not exceed .... .[and shall adopt one of the forms provided for in article 3.2] [200 days during which time the pertinent requirements of this [Chapter] concerning Investigation Procedures and Transparency Requirements shall be met.]]
 

[7.4 [Immediately after][Before][adopting a temporary] [applying a provisional] safeguard measure, the other Parties shall be notified [within a period of .], and consultations shall begin [immediately] [promptly] after application of the measure. Said notice shall include the main features of the facts, including the evidence showing the need for the provisional safeguard, and a precise description of the [product][good] subject thereof.]
 

[7.5 If the subsequent investigation were to show that the increase in preferential-tariff imports or the conditions of said imports have not caused or posed a threat of serious injury to the branch of domestic industry in question, the amount received under the temporary measures shall be reimbursed promptly or, when such is the case, the bond posted for the purpose shall be released.]
 

[7.5 If the imposition of a provisional safeguard results in the imposition of a rate of duty in excess of the rate of duty pursuant to Schedule .... of this Agreement, the excess duties imposed shall be promptly refunded if the subsequent investigation referred to in Article 5 does not determine that increased imports are a substantial cause of serious injury or threat thereof to a domestic production.]
 

Article 8. Rights of the Affected Parties
 

8.1 A Party [intending to apply] [applying]/ a safeguard measure will [accord the affected Party or Parties ] [, in consultation with Parties that are substantial suppliers of the good concerned, provide to such substantial suppliers mutually agreed trade liberalizing] compensation in the form of : 
 

a) [tariff] concessions having substantially equivalent trade effects, or 
 

b) [concessions equivalent to the value of the additional duties [resulting from the adoption of the safeguard measure] [expected to result from the measure].]
 

8.2 [Compensation shall be determined at the consultation stage.] [Such consultations shall begin within 30 days of the imposition of the measure. 
 

If no agreement is reached within 30 days in these consultations, then any Party that is a substantial supplier shall be free to suspend the application of substantially equivalent concessions to the trade of the Party applying the safeguard measure.]
 

8.3 If [they] [the Party intending to apply a safeguard measure and the affected Parties] are unable to agree on a satisfactory solution, the affected [Party or] Parties may [impose] [apply] tariff measures having substantially equivalent trade effects to the measure adopted.
 

[Any Party that is a substantial supplier of the product concerned shall provide written notification to the importing Party at least 30 days prior to exercising the right of suspension referred to in Article .... .]
 

[The obligation to provide compensation and the right of suspension of substantially equivalent concessions shall terminate upon the later of: (a) the termination of the safeguard measure, or (b) if the Party terminates such measure in accordance with Article .... the date on which the rate of duty returns to the rate of duty set out in Schedule . .]
 

[8.4 The Party applying the tariff measure will do so to the extent and for the minimum period of time necessary for achieving the objective being pursued.]
 

[Article 9. Safeguards for Specific Sectors]
 

[Part II. Global Safeguards] (10)
 

[Article 10. Global Safeguards]
 

[10.1 Parties preserve their rights and obligations to apply safeguard measures pursuant to Article XIX of GATT 1994 and the Agreement on Safeguards of the WTO.[, except those referring to compensation or reprisal and the exclusion of a measure, where they are incompatible with the provisions of this [Chapter] [article].][This Agreement does not confer any additional rights or obligations on the Parties with regard to actions taken pursuant to Article XIX of GATT 1994 and the WTO Agreement on Safeguards.]]
 

[10.2 The Party that decides to adopt a global safeguard measure may only apply it to the imports of another Party when it determines that said imports, taken individually, represent a substantial portion of the total imports and is a major contributor to the serious injury or to the threat of serious injury.]

[10.3 In order to make this determination, the following criteria [, among others, shall be taken into account][shall be observed]: 
 

a) imports of [originating] goods from a Party shall be considered substantial if they are included among the [....] [three] [5] main supplier countries of that good [taking as the basis its share in imports during years immediately before]. [By way of exception, imports from another Party shall be considered substantial if they are included among the ten leading supplier countries of the good to the importing Party when in all they represent over 25 per cent of said imports;]
 

b) a safeguard measure shall not be taken against imports from [developing countries][the smaller economies and/or economies in different levels of development] where such imports, considered individually, do not account for more than 8% of the imports of that good in the importing Party;
 

c) imports of goods from another Party shall not be considered to make a major contribution to the serious injury or threat of serious injury, if their rate of growth during the period in which the prejudicial[sudden]increase therein took place is [appreciably]lower than the rate of growth of the total imports over the same period. [Similarly, the volume of and changes in the Party's share in the total imports shall be take into account to determine that the other Party's imports contribute significantly to the serious injury or threat of serious injury.]]
 

[10.4 The Party that applies the measures and has initially excluded another Party's good from it shall be entitled to include it afterwards, if the competent investigating authority determines that an increase in the imports of said good from the excluded Party causes serious injury or threatens to cause serious injury and as a result reduces the effectiveness of the measure.]
 

[10.5 [One Party shall notify the other Party without delay and in writing of the initiation of a procedure that may result in the application of a safeguard measure in accordance with paragraph 1.]In no case may the importing Party apply a global safeguard measure without prior notification in writing [to the FTAA administrative body {and}] to the other Party and without first engaging in [prior] consultations [with the other Party].]
 

[10.6 The Party that intends to apply a global safeguard measure shall provide the Party affected by the measure with mutually agreed compensation, in the form of concessions that have trade effects [substantially]equivalent [to the impact of][or that are equivalent to the value of the additional tariffs expected from][to] the safeguard measure.]
 

[10.7 Unless the Parties agree otherwise, the compensation referred to in the foregoing paragraph shall be determined at the consultation stage.]
 

[10.8 If the Parties do not reach agreement regarding compensation, the Party proposing the adoption of the measure shall be authorized to implement it, and the affected Party may impose measures that have trade effects[substantially] equivalent to those of the measure adopted.]
 

[10.9 [For the purpose of][Before imposing] global safeguard measures, each Party shall [ensure that the domestic industry or branch of production benefiting from the measure present an][examine and determine the feasibility of an] adjustment plan or a plan to overcome the circumstances alleged to cause serious injury or the threat of serious injury [, provided that these circumstances are variables that can be controlled by the given industry][presented by the branch of domestic industry]. The Party that applies the measure shall provide the other Parties a non-confidential summary of the plan [and a duly founded report of its determination].]
 

[10.10 When a Party decides, pursuant to this article, to apply a safeguard measure to goods originating in another Party, the measures applied to said goods shall solely and exclusively consist of tariff measures]
 

[Article ___. Dispute Settlement for matters related to safeguard measures]
 

[No Party may request the establishment of an arbitral group, pursuant to the provisions in the [Chapter] on dispute settlement, when it is a matter of safeguard measures that have merely been proposed.]
 

Article 11. Definitions
 

The following definitions shall apply:
 

Agreement on Safeguards: the Agreement on Safeguards, which forms part of the Agreement Establishing the World Trade Organization (WTO).
 

[Branch of]domestic industry: the producers as a whole of [the] like or directly competitive goods operating [in][within] the territory of a Party, [or those whose collective output [of the like or directly competitive] [products] [goods] constitutes a major proportion of the total domestic production of those [products] [goods]].
 

Competent authority: the authority of a Party listed in Annex ...., or those who succeed them.
 

[Critical circumstances: those circumstances in which a delay in the application of the safeguard measure could cause difficult to repair injury;]
 

[Directly competitive good: that which, while not similar to the one that it is compared with, is essentially equivalent for purposes of trade being put to the same use and being interchangeable with the latter.[To establish determination of a directly competitive good, the competent authority shall also consider whether the good makes use of the same distribution channels, is sold in the same market, and is purchased by a similar group of consumers.]]
 

GATT 1994: the General Agreement on Tariffs and Trade of 1994, which forms part of the Agreement Establishing the World Trade Organization.
 

Interested [parties] [party]: the petitioner; other [domestic] producers; commercial, trade or business associations in which the majority of the members are producers of the [product] [good] under investigation; foreign producers; exporters; importers; governments of the exporting or producing Parties; and consumers or associations representing them.
 

[Safeguard measure: all measures applied in accordance with the provisions of this [Chapter]. This does not include any safeguard measure derived from a procedure initiated before this {Agreement}{Treaty} entered into force.]
 

Serious injury: a significant overall impairment [of the situation of a branch of] [in the position of a] domestic industry.
 

[Similar good: [includes an identical good and]one that, although not the same in all aspects, has similar features and composition, which enables them to perform the same functions and to be commercially interchangeable with the good it is compared with.]
 

[Substantial cause: a cause which is important and not less than any other cause.]
 

[Substantial supplier: any Party that for the three years preceding an investigation described in Article 5 was, on average, the territory of origin of at least ten percent, by value, of imports from the Party of the good subject to a safeguard measure.]
 

Threat of serious injury: [the clear imminence of serious injury, determined on the basis of facts and not merely on allegations, suppositions or remote possibilities.][serious injury that is clearly imminent. Such a determination shall be made on the basis of facts and not merely on allegation, conjecture, or remote possibility.]
 

[Transition period: [the ten-year period beginning on the date of entry into force of this Agreement.][ the period during which a Party may adopt and maintain safeguard measures; and it shall cover, for each good,]]
 
 
 

[CHAPTER ON] ORIGIN REGIME 
 

1) ORIGINATING GOODS 
 

[[For purposes of the Liberalization Program envisaged in this Agreement and] pursuant to the provisions of this[Chapter],] the following goods shall be considered to be originating [from][in][,] the territory of [any][a][one of] [the] Part[y][ies]: 
 

1.1 ) Goods wholly obtained or produced entirely in the territory of [one or more] [one] [any] of the Party[ies] [means]
 

[(a) minerals [and other non-living natural resources][and other natural substances] extracted [in][or taken from] the territory of [one or more][one][any] of the Party[ies];]
 

[(b) vegetable [s][products][, as those products are defined in the Harmonized System,] harvested [or gathered] in the territory of [one or more][one][any] of the Party[ies];]
 

[(c) live animals born and raised in the territory of [one or more][one][any] of the Party[ies] [and products of live animals raised therein];]
 

[(c') goods obtained from live animals in the territory of one or more of the Parties]
 

[ (d) [goods][products] obtained from hunting [, trapping] or fishing [conducted] in the territory [or in the territorial waters and exclusive economic zone] of [one or more][one][any] of the Party[ies];]
 

[(e) [fish, shellfish and other marine life][products] taken from the sea [[outside territorial waters and maritime zones in which the Parties have jurisdiction,][in accordance with the United Nations Law of the Sea] whether][, seabed or subsoil outside the territory of one or more of the Parties] by vessels registered [or][,] recorded [or listed][with][in] a Party and [flying]{[entitled to fly]} its flag [{or} by vessels [leased [or chartered] by enterprises established in the territory of a Party][not exceeding{[15]} tons gross tonnage that are licensed by a Party]; ]
 

[(f) goods produced aboard [factory] ships from the goods referred to in subparagraph (e), provided such[factory] ships are registered [or][ , ] recorded [or listed][with][in] one of the Parties and [entitled to] fly its flag [, or by [factory] ships leased by enterprises established in the territory of a Party];]
 

[(g) goods [other than fish, shellfish and other marine life,] taken [by a Party or a person of a Party][or extracted] from the seabed or {subsoil}{beneath the seabed} outside [the][its] territorial [and patrimonial] waters [and exclusive economic zones], provided that [one of] [the][that] Party[ies][have][or a person {on}{of} one of the Parties has] rights to exploit such seabed][the subsoil of the continental shelf or the exclusive economic zone of any of the Parties];]
 

[(g') goods, other than fish, shellfish and other marine life, taken or extracted from the seabed or the subsoil, in the Area outside the continental shelf and the exclusive economic zone of any of the Parties or of any other State as defined in the United Nations Convention on the Law of the Sea, by a vessel registered, recorded or listed with a Party and entitled to fly its flag, or by a Party or person of a Party;]
 

[(h) goods taken from [outer] [terrestrial] space, provided they are obtained by a Party or a person of [a][one or more of the] Party[ies] and not processed in a non-Party [country]; ]
 

[(i) waste and scrap [derived from the use, consumption or industrial processes carried out in the territory of any of the Parties, that are useable only for the recovery of raw materials; and]{[ derived from]}
 

- production in the territory of [one or more][one] of the Party[ies], or
 

- used goods collected in the territory of [one or more][one] of the Party[ies], provided such goods are fit only for the recovery of raw materials; and]
 

[(i) Waste and scrap derived from production in the territory of one or more of the Parties;
 

(ii) Used goods collected in the territory of one or more of the Parties, provided that such goods are fit only for the recovery of raw materials]
 

[[(j) [The] goods produced in the territory of [one or more] [any] Party[ies] exclusively from goods referred to in the preceding sub-paragraphs [or from their derivatives, at any stage of production][[or their derivatives].][(j) goods produced in the territory of one of the Parties, exclusively on the basis of the goods mentioned in letter (a) to (i), in any stage of production]]]
 

1.2 ) Goods produced exclusively from materials [that qualify as] originating in the territory of [one or more of ] the Parties [in accordance with paragraphs 1.1 and 1.3.1 of this article.]
 

Alternative 1
 

[A good shall be considered as originating [in one of the Parties] when it is [wholly] produced [entirely] in the territory of [one or more][one][that] Party[ies] exclusively from [originating] materials [that qualify as originating] [in any of the Parties], in accordance with this [Chapter].]
 

Alternative 2
 

[A good shall originate in the territory of [one or more][one] Party[ies] when the good is produced [entirely] in the territory of [one or more][one] Party[ies] exclusively from materials [which qualify as] originating in accordance with this [Chapter].]
 

[ Where goods are produced in one or more of the Parties only from materials which are considered as originating under this [Chapter], these goods shall in turn be considered as originating.]
 

1.3) [Goods produced from originating and non-originating materials] (11){[Sufficient Production]}{[Substantial transformation]}
 

1.3.1[Criteria for qualification of goods as originating:] [Criteria for the qualification of goods produced using non-originating materials] 
 

[Change in tariff classification]
 

[Goods produced in the territory of one or more of the Parties from [originating and] non-originating materials that comply with a change in tariff classification [defined by a fixed, general rule such as a change in tariff heading] [defined in a variable manner for each product, as detailed in Annex ___.][; and for those cases in which the change in tariff classification is not sufficient or appropriate, regional value content shall be used as criteria.]
 

[A good shall qualify for the benefits of this Agreement where each of the non-originating materials undergoes an applicable change in tariff classification set out in Annex # as a result of production occurring entirely in the territory of one [or more] of the Part(ies).]

[[and for those cases in which the change in tariff classification is insufficient or not appropriate, [regional value content][and/or specific transformation criteria shall be used]] [and/or regional value content and/or specific transformations.]]
 

[Specific transformations for those cases in which the tariff classification criteria are insufficient or not appropriate.]
 

[The determination of requirements for specific transformations shall be established on the basis of [compliance with productive processes and/or] exclusive use of regional inputs, materials, parts or components.]
 

{[1.3.1 Qualification criteria for originating goods:]}
 

[(a) goods produced in the territory of a party from non-originating goods that undergo a change in tariff classification and other requirements, as specified in the annex to this article and that fulfill other applicable provisions of this chapter;
 

(b) goods produced in the territory of a party from non-originating goods that undergo a change in tariff classification and other requirements, and the goods comply with a regional value content requirement, as specified in the annex to this article, and that fulfill other applicable provisions of this chapter; or
 

(c) goods produced in the territory of a party and that meet a regional value content requirement as specified in the annex to this article and that complies with the other applicable provisions of this chapter.
 

1.3.2 For the purposes of this chapter, a good shall be produced entirely in the territory of a party and all regional value content requirement of a good must be satisfied entirely in the territory of a party.
 

1.3.3 For determining the origin of a good in accordance with the provisions of subparagraph a) of paragraph 1.3.1, if the good used materials determined to be originating in accordance with subparagraphs b) or c) of paragraph 1.3.1, the non-originating materials incorporated into them must satisfy the change in tariff classification of the good and other requirements, as specified in the annex to this article.
 

1.3.4 For determining the origin of a good in accordance with the provisions of subparagraph b) of paragraph 1.3.1, if the good used materials determined to be originating in accordance with subparagraphs b) or c) of paragraph 1.3.1, the non-originating materials incorporated in the latter must satisfy the change in tariff classification of the good and other requirements, as specified in the annex to this article, and the value of said non-originating materials shall be included in the calculation of the regional value content of the good, in accordance with subparagraph 1.4.
 

1.3.5 For determining the origin of a good in accordance with subparagraph c) of paragraph 1.3.1, if the good used materials determined to be originating in accordance with the provisions of subparagraphs b) or c) of paragraph 1.3.1, the value of said non-originating materials shall be included in the calculation of the regional value content of the good, in accordance with paragraph 1.4.
 

1.3.6 In establishing whether a good is originating, an exporter or producer may accumulate production with that of one or more producers in its territory of non-originating goods that are incorporated into the good, so that the production of the materials is considered by the exporter or producer, provided it complies with the provisions of paragraphs 1.3.1 to 1.3.5]
 

[[1.4Regional value content [for those cases in which tariff classification criteria are insufficient or not appropriate.]]
 

[A good shall be considered to be an originating good if the CIF value of the originating and non-originating materials from the territory of the Parties used in the production or transformation of the good does not exceed ___ percent of the FOB export value of the product [___ percent for [the countries included in Annex XXX (small economies)][smaller economies and/or countries in different levels of development]]]
 

[[1.4.1 Save for the provisions of paragraph 1.4.5][ For purposes of determining whether a good is an originating good,] the regional value content of a good shall be calculated [at the choice of the exporter or producer of the good]on the basis of the transaction value method {[established in paragraph 1.4.2]} or [with the net cost method]{[established in paragraph 1.4.4 ]}.]

[1.4.2 For calculating the regional value content of a good, based on the transaction value method, the following formula will be used:]
 

[[Transaction Value method:]

TV - VNM 

RVC = ----------------- x 100

TV
 

where: 
 

RVC is the regional value content, expressed as a percentage; 
 

TV is the transaction value of the good adjusted on an FOB basis. [save for the provisions of paragraph 1.4.3][ If such value does not exist or can not be determined according to the principles set forth in Article 1 of the Customs Valuation Agreement, it shall be calculated according to the principles set forth in Articles 2 through 7 of said Agreement]; and 
 

VNM [is the value of non-originating materials adjusted on a CIF basis. If such value does not exist or can not be determined according to the principles set forth in Article 1 of the Customs Valuation Agreement, it shall be calculated according to the principles set forth in Articles 2 through 7 of said Agreement]]. [value of the non-originating materials used by the producer in the production of the good, determined iin accordance with the provisions of article 1.5]
 

[For purposes of calculating regional value content, the value of non-originating materials used in the production of a good shall not include the value of non-originating materials used in the production of an originating material[acquired and] used in the production of that good. ]
 

[[1.4.3. For the purposes of paragraph 1.4.2.]If the producer of a good does not export it directly, the[transaction]value shall be adjusted up to the point at which the purchaser receives the good in the territory where the producer is located. ]
 

[1.4.4 To calculate the regional value content of a good on the basis of the net cost method, the following formula will be used:

nc - vnm

rvc = --------------- x 100

nc 

where 
 

rvc is the regional value content, expressed as a percentage; 
 

nc is the net cost of the good; and 
 

vnm is the value of non-originating materials used by the producer in the production of the good, determined in accordance with article 1.5.]
 

[1.4.5 Each party shall provide that an exporter or producer shall calculate the regional value content of a good solely on the basis of the net cost method set out in paragraph 1.4.4 when: 
 

a) there is no transaction value because the good is not subject to sale; 
 

b) the transaction value of the good cannot be determined due to existing restrictions on the transfer to or use of the good by the buyer, with the exception of those that:
 

i) are imposed or required by law or by the authorities of the party where the buyer of the good is located;
 

ii) limit the geographic territory where the good can be resold; or
 

iii) do not noticeably affect the value of the good.
 

c) the sale or the price depends on a condition or consideration, the value of which cannot be determined for good;
 

d) part of the product of the resale of the good or of any subsequent transfer or use of the good reverts directly or indirectly to the seller, unless the due adjustment can be made in accordance with article 8 of the customs valuation code;
 

e) the buyer and the seller are related and the relationship between them influences the price, except as provided in article 1.2 of the customs valuation code;
 

f) the producer sells the good to a related person and the volume of sale in units of quantity of identical or similar goods sold to related persons during the six-month period immediately preceding the month in which the producer sold the good is greater than 85% of the producer's total sales of said goods during the period; and 
 

g) the good is designated an intermediate good pursuant to article 4.8 and is subject to a regional value content.]
 

[1.5 VALUE OF THE MATERIALS
 

1.5.1 For purposes of calculating the regional value content, the value of non-originating goods used by the producer in the production of the good shall be the sum of the values of the non-originating materials, determined in accordance with this article, imported from outside the territory of the party and that are used in the production of the good or are used in the production of any material used in the production of the good.
 

1.5.2 Determination of the value of the materials
 

a) shall be the transaction value of the material, or
 

b) in the event there is no transaction value of the material or the transaction value of the material cannot be determined pursuant to the principles of article 1 of the customs valuation code, shall be calculated in accordance with the principles of articles 2 to 7 of that code.
 

1.5.3 When not considered in subparagraphs a) or b) of paragraph 1.5.2, the value of a material shall include:
 

a) freight, insurance, packing and all other costs incurred in transporting the material to the port of importation in the party where the producer of the good is located, except as provided for in paragraph 1.5.4; and
 

the cost of waste and spoilage resulting from the use of the material in the production of the good, less the recovery of these costs, provided recovery does not exceed 30% of the value of the material determined in accordance with paragraph 1.5.2]
 

[1.5.4][If the producer of the good acquires a non-originating material in the territory of the Party in which it is located, the value of the non-originating material shall not include freight, insurance, costs of packaging and any other costs incurred in transporting the material from the supplier's warehouse to the place where the producer is located.
 

Text proposal 1
 

[1.3.1 Subject to Article [6][ 5], a good shall be considered to have undergone {sufficient production}{substantial transformation}when the conditions set out for that good in Annex 1.3 (product-specific rules) are fulfilled.]
 

[1.3.2 Except as provided in Annex 1.3 [or except for a good of Chapter _______ of the Harmonised System], where a good and one or more of the non-originating materials used in the production of that good cannot satisfy the conditions in Annex 1.3 because both the good and the non-originating materials are classified in the same subheading, or heading that is not further subdivided into subheadings, the good shall be considered to have undergone {sufficient production,}{substantial transformation} provided that the value of the non-originating materials classified as or with the good does not exceed __ per cent of the transaction value of the good.]
 

[1.3.3 Fish, shellfish or other marine life that has been taken from the sea, seabed or subsoil by a vessel of a non-Party and that has undergone {sufficient production}{substantial transformation} on board a factory ship outside the territory of one or more of the Parties shall be considered as originating, provided that such factory ship is registered, recorded or listed with a Party and {[flying]}[entitled to fly] its flag.]
 

Text proposal 2
 

[For the purposes of the Liberalization Program envisaged in this Agreement and pursuant to this [Chapter], the following goods will be considered originating in the territory of any of the Parties:
 

(a) goods prepared with non-originating materials, provided they meet the following conditions:
 

i) they result from a production or transformation process carried out in the territory of a Party; and
 

ii) this process vests in them a new individuality requiring different classification in the Harmonized System than the non-originating materials;
 

(c) goods that do not comply with a change in tariff classification, in which originating and non-originating materials from the territory of the Parties are used in the production or transformation process, provided the CIF value of the non-originating materials does not exceed . percent of the FOB export value of the product in the case of nor the (The differentiated amount of the percentages and their levels will be determined during the course of the negotiations, and will take into account the countries' different levels of development and the size of the economies); and
 

(d) goods that are assembled, provided that originating and non-originating materials from the territory of the Parties are used in their preparation and that the CIF value of the non-originating materials does not exceed percent of the FOB export value in the case of or the (The differentiated amount of the percentages and their levels will be determined during the course of the negotiations, and will take into account the countries' different levels of development and the size of the economies).]
 

Text proposal 3
 

[The value of an indirect material shall be based on the generally accepted accounting principles applicable in the territory of the Party in which the good is produced.
 

C. Specific requirements of Origin
 

Specific transformations for those cases in which the tariff classification criteria or the regional content value are insufficient or not appropriate. The determination of requirements for specific transformations shall be established on the basis of compliance with productive processes and/or exclusive use of regional inputs, materials, parts or components. 
 

D. The good is produced wholly in the territory of one or more of the Parties, but one or more of the non-originating materials used in producing the good does not undergo a change in tariff classification because:
 

i) the good has been imported into the territory of a Party without assembly or disassembly, but has been classified as an assembled good in compliance with rule {2} (a) of the General Rules for Interpretation of the Harmonized System, or
 

ii) the heading for the good is the same both for the good and for its parts and specifically describes them, and this heading is not divided into subheadings, or the subheading is the same both for the good and for its parts and describes them specifically,
 

as long as the regional content value of the good, determined in compliance with Article {2}, is not less than ___ percent and the good meets the other applicable requirements in this [Chapter], unless the applicable rule of Annex XX under which the good is classified specifies a different regional content value requirement, in which case this requirement should be applied.]
 

Text proposal 4
 

[Goods shall be considered as originating in the territory of one of the Parties where they have been produced in one of the Parties wholly or partly from non-originating materials by a process which satisfies the conditions therefore specified in the Annex to this [Chapter].]
 

[2) SPECIFIC REQUIREMENTS OF ORIGIN]
 

[2.1 Determination and revision.] 
 

[[For the purposes of the Liberalization Program envisaged in this Agreement and pursuant to the provisions of this[Chapter], goods that comply with the Specific Requirements of Origin described in Annex I of this [Chapter] shall also be considered to originate in the territory of any of the Parties.][and shall prevail over general criteria].]
 

[The specific requirements of origin shall prevail over general criteria for the qualification of [origin and shall be adopted when strictly necessary.]][The provisions in the preceding paragraph shall not apply to products wholly produced in the territory of any of the Parties, when only and exclusively originating materials {of the Parties} were used in their production.]
 

[For the determination of specific requirements, consideration may be given to change in tariff classification on the basis of criteria other than general criteria, [compliance with basic productive processes,] exclusive use of inputs, the accumulation or combination of criteria established in Article ___.]
 

[Specific Requirements of Origin shall be established in exceptional, duly justified cases. They shall not be restrictive in nature, in terms of constituting obstacles for the competition to equitably tap the advantages stemming from the application of the Liberalization Program of this Agreement.]
 

[Annex I of the Specific Requirements of Origin may be amended by the (agency in charge of administering the Agreement).]
 

[The Parties shall define, by common consent [and within the (agency in charge of administering the Agreement)], the procedures, terms and requirements for establishing and revising the Specific Requirements of Origin. In this regard, the level of development of the Parties shall be taken into consideration.]
 

[ The Parties may request review of a Specific Requirement of Origin [by (the agency in charge of administering the Agreement),] which should examine the Requirement and the reasons justifying its review, and adopt a final decision within six (6) months of the request for the review.]
 

[2.2 Cases of non-compliance for justified reasons.]
 

3) TREATMENT OF ACCUMULATION
 

[[Materials or goods originating in the territory of a Party that are incorporated into a good in the territory of another Party shall be considered to originate in the territory of the latter.][ and processing carried out in the territory of a Party shall be considered as taking place in the Party in which final production takes place, provided that the materials or goods are transported in accordance with Article 6].]
 

[For determining the origin of a good, materials originating in the other Parties shall be considered originating in the territory of a Party.]
 

[For purposes of determining whether a good is [an] originating[,][good, the production of the good in the territory of one or more of the Parties by one or more producers shall, at the choice of] the [exporter] or [producer] of [a][the] good [may accumulate its production with that of one or more other producers, in the territory of one or more of the Parties, [of [non-originating] materials that are incorporated in the good,] so that the production of the materials is considered as if performed by that producer,][for which preferential tariff treatment is claimed, be considered to have been performed in the territory of any of the Parties by that exporter or producer,] provided that [the good complies with the provisions of Article___].]
 

[(a) all non-originating materials used in the production of the good undergo {sufficient production}{substantial transformation} within the meaning of Article 1.3 of the [Chapter], entirely in the territory of one or more of the Parties; and
 

(b) the good satisfies all other applicable requirements of this [Chapter].]
 

[3.1. For purposes of determining whether a good is an originating good, at the choice of the exporter or producer of the good for which preferential tariff treatment is claimed, the materials originating in the territory of one or more of the parties incorporated or used in the production of the good shall be considered originating, provided:
 

a) they are considered originating pursuant to the provisions of article 1.1;
 

b) they are considered originating pursuant to the provisions of article 1.2; or
 

c) they are considered originating pursuant to the provisions of subparagraph a) of article 1.3.1.
 

3.2 For determining whether a good is originating, at the choice of the exporter or producer of the good for which preferential tariff treatment is claimed, the materials originating in the territory of one or more of the other parties incorporated or used in the production of the good shall be considered in the following manner:
 

a) if for determining the origin of the good in accordance with subparagraph a) of article 1.3.1, this good used materials that qualify as originating pursuant to subparagraphs b) or c) of article 1.3.1, the non-originating materials incorporated in the latter must undergo the change in tariff classification corresponding to the good and other requirements, as specified in the annex to article 1.3;
 

b) if for determining the origin of the good in accordance with subparagraph b) or article 1.3.1, the good used materials that qualify as originating in accordance with subparagraphs b) or c) of article 1.3.1, the non-originating materials incorporated in the latter must undergo the change in tariff classification corresponding to the good and other requirements, as specified in the annex to article 1.3, and the value of said non-originating materials shall be considered in the calculation of the regional value content of the good, pursuant to article 1.4; or
 

c) if for determining the origin of the good in accordance with subparagraph c) of article 1.3.1, this good used materials that qualify as originating in accordance with subparagraphs b) or c) of article 1.3.1, the value of the non-originating materials incorporated in the latter shall be considered in the calculation of the regional value content of the good, pursuant to article 1.4.
 

3.3 For the purpose of establishing whether a good is originating, an exporter or producer may accumulate its production with that of one or more producers, in the territory of one or more parties, of non-originating materials that are incorporated in the good, so that the production of said materials is considered as if performed by that exporter or producer, provided that the good complies with the provisions of paragraphs 3.1 and 3.2 of this article.]
 

4) QUALIFICATION OF SPECIFIC TYPES OF GOODS AND MATERIALS 
 

4.1) "De Minimis"
 

[[[4.1.1] Notwithstanding Article 1.3 and except for a good of Chapters 50 through 63,][A][ a] good [that does not comply with a change in tariff classification][in accordance with Annex XX] shall be considered [as] originating [,][if][where] the [CIF] value of all non-originating materials [used in the production of the good,[that do not comply with the requirements for][which do not undergo the applicable] change in tariff classification [established in the annex to article 1.3][used in its production][or fulfill any other condition set out in Annex 1.3,] does not exceed ___ percent of the [transaction] value of the [specific] good [pursuant to Article ____[in the case]. [___ percent for the {[countries included in Annex XXX (smaller economies)]}[smaller economies][the following percentages are applied: once the agreements enters into force, XX % , from 2010 on, XX %,][ and/or economies in different levels of development]][in conformity with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, adjusted on a FOB basis][ , provided that][adjusted on the base indicated in paragraph 1.4.2 or 1.4.3, as the case may be, or in the cases referred to in subparagraphs a) through f) of paragraph 1.4.5, if the value of all non-originating materials referred to above does not exceed (___%) of the total cost of the good]:
 

[(a) if the rule of Annex 1.3 applicable to the good contains a percentage for the maximum value of non-originating materials, the value of such non-originating materials shall be included in calculating the value of non-originating materials; and]
 

[(b) the good satisfies all other applicable requirements of this [Chapter].]]
 

[Notwithstanding the provisions of Article 1.3.1 and the Annex, non-originating materials may be used in the production of goods, provided that the value of the non- originating materials used does not exceed .... per cent of the value of the final product]
 

[ 4.1.2 A good of any of Chapters 50 through 63 of the Harmonised System, that does not originate because certain non-originating fibres or yarns used in the production of the component of the good that determines the tariff classification of that good do not fulfil the conditions set out for that good in Annex1.3, shall nonetheless be considered to originate if the total weight of all such fibres or yarns in that component does not exceed __ per cent of the total weight of that component. ]
 

[In the case provided in the preceding paragraph, the producer shall not be obliged for fulfill any other rule of origin.]
 

[The provisions in this Article shall not apply to goods that the member countries wish to exclude.]
 

[4.1.2 When the good is subject to a regional value-content requirement, the value of such non-originating materials shall be taken into account in calculating the regional value content of the good and the good must satisfy all other applicable requirements of this chapter.
 

3.1.3 A good that is subject to a regional value content requirement established in the annex to article 1.3 shall not be required to satisfy such requirement if the value of all non-originating materials is not more than (___%) of the transaction value of the good, adjusted to the base indicated in paragraph 1.4.2 or 1.4.3, as the case may be, or in the cases referred to in subparagraphs a) through f) of paragraph 1.4.5, if the value of all the aforementioned non-originating materials does not exceed (___%) of the total cost of the good.
 
 
 

3.1.4 Paragraph 4.1.1 does not apply to:
 

a) goods provided for in chapters 50 through 63 of the harmonized system; or
 

b) a non-originating material used in the production of a good provided for in chapters 1 through 27 of the harmonized system unless the non-originating material is provided for in a different subheading than the good for which origin is being determined under this article.]
 

[4.1.5][In the case of goods classified in Chapters 50 through 63 of the Harmonized System, [the percentage indicated in paragraph 1 shall refer to the weight of the fibers and yarns in relation to the weight of the produced good].][that do not originate because the fibers and yarns used in the production of the material of the good that determines the tariff classification of the good do not undergo a change in tariff classification set out in the annex to article 1.3, shall nonetheless be considered to originate if the total weight of such fibers and yarns in that component is not more than (___%) of the total weight of that component.]
 

[Paragraph 1 shall not apply to a non-originating material used in the production of goods [included] in Chapters 1 through 27 of the Harmonized System unless the non-originating material is provided for in a different sub-heading than the good for which origin is being determined under this article.]
 

[4.2) Fungible materials and [goods][merchandise]]
 

[[For purposes of determining whether][A material and] a good is an originating good:]
 

[4.2.1][(a) where originating and non-originating fungible materials are used in the production of a good, [the [origin of] determination of whether the materials [need not be determined through the identification of any specific fungible material, but][[are originating materials] may [should] be [determined][made] on the basis of any of the[applicable] inventory management methods [agreed between the Parties][set out in this Agreement]; and]][are commingled or physically combined in inventory, the origin of the materials may be determined by means of one of the inventory management methods established in paragraph 4.2.3.]
 

[4.2.2][(b) where originating and non-originating fungible goods are commingled or physically combined in inventory [and prior to their export do not undergo any productive process or any other operation in the territory of the Party in which they were commingled or physically combined, other than unloading, reloading, or any other handling necessary to keep them in good condition or to transport them][in the territory of a Party and exported {in the same form}] to the territory of another Party, the [origin of the good]{[determination of whether the good is an originating good]} may be [determined][made] on the basis of any of the [applicable] inventory management methods [agreed between the Parties].][set out in this Agreement][ established in paragraph 4.2.3]
 

[4.2.3. The inventory management methods applicable to fungible materials or goods shall be the following:
 

b) "f-i-f-o" (first in-first out) is the inventory management method by which the origin of the number of units of fungible materials or goods that are first received in inventory are considered the origin, in like number of units, of the fungible materials or goods that first leave inventory;
 

c) "l-i-f-o" (last in-first out) is the inventory management method by which the origin of the number of units of fungible materials or goods received last in inventory is considered the origin, in like number of units, of the fungible materials and goods that first leave inventory;
 

d) "averages" is the inventory management method by which, except as provided in subparagraph d), the determination as to whether the fungible materials or goods are originating is made by applying the following formula:
 
 
 

tom

aom = __________ x 100
 

tonm
 

where
 

aom average of originating fungible materials or goods
 

tom total units of originating fungible materials or goods that are a part of inventory before exiting 
 

tonm sum total of units of originating and non-originating fungible materials and goods that are part of the inventory before exiting
 

e) in the case of a good subject to a regional value content requirement, the following formula is used for determining non-originating fungible materials:
 
 
 

tnm

anm = __________ x 100
 

tonm
 

where
 

anm average non-originating materials
 

tnm total value of non-originating materials that are a part of the inventory before exiting
 

tonm total value of originating and non-originating fungible materials that are a part of the inventory before exiting.]
 

[Once one of the inventory management methods [established in paragraph 3] has been selected, it shall be used for the entire period or fiscal year.]
 

[4.3) Sets [ and assortments.]]
 

[4.3.1][[Sets and assortments of goods classified pursuant to][Except as provided in Annex 1.3, a set, as referred to in] rule 3 of the General Rules of Interpretation of the Harmonized System, [as well as goods whose description conforms to the Harmonized System Nomenclature, whether specifically that of a set or assortment,] shall qualify as originating, [provided that [each of the goods contained in the set or assortment complies with the [corresponding specific] rules of origin.]][established for each of the goods in this chapter.] :
 

[(a) all the component goods, including packaging materials and containers, are originating; or
 

(b) where a set contains non-originating component goods, including packaging materials and containers,
 

(i) at least one of the component goods, or all the packaging materials and containers for the set, is originating, and
 

(ii) the value of the non-originating component goods, including any non-originating packaging materials and containers for the set, does not exceed __ per cent of the transaction value {of the goods}{of the set}.]

[4.3.2][Notwithstanding the provisions of paragraph {[4.3.1]}, a set or assortment of goods shall be considered originating if the value of {all} non-originating goods used in the formation of the set or assortment [, adjusted on a CIF basis,] does not exceed ____ percent [of the value of the set or assortment].[set forth under 4.1 de minimis][, adjusted on a FOB basis,]][of the transaction value of same, adjusted on the base indicated in paragraph 1.4.2 or 1.4.3, as appropriate, or in the cases referred to in subparagraphs a) through f) of paragraph 1.4.5 if the value of all the aforementioned non-originating goods does not exceed (___%) of the total cost of the set or assortment.]
 

[Sets and assortments of goods shall be considered originating if each of the goods making them up complies with the provisions of this [Chapter].]
 

[Sets as defined in General Rule 3 of the Harmonised System shall be regarded as originating goods where all the goods making up the sets are originating goods. However, where the set is comprised of originating and non-originating goods, the set as a whole shall be regarded as originating where the value of the non-originating goods does not exceed .... per cent of the value of the final product.]
 

[4.3.3 The provisions of this article shall prevail over the specific rules established in the annex to article 1.3.]
 

[The provisions of this section shall prevail over the specific rules set forth in the annex of specific rules.]
 

4.4) Accessories, spare parts and tools.
 

[4.4.1][For purposes of determining whether all of the non-originating materials used in the production of a good comply with the applicable change in tariff classification described in Annex yy,] accessories, [spare parts {or}]{and} tools delivered with [the][a] good that form [part [of the good's standard accessories, spare parts or tools][,]][standard part of same] shall be [considered as originating if the good originates and shall be] disregarded [in determining whether all the non-originating materials undergo the applicable change of tariff classification set out in Annex [yy][1.3]] , [to article 1.3]provided that:]
 

[[a)] the accessories, [spare parts {or}]{ and} tools are not invoiced separately from the good, irrespective of whether each is broken down or detailed in the actual invoice[for the good]; [and]]
 

[[b)] the quantity and value of the accessories, [spare parts {or}]{ and} tools are customary for the good[being classified.][; and]]
 

[c) if the rule of Annex 1.3 applicable to the good contains a percentage for the maximum value of non-originating materials, the value of any non-originating accessories, [spare parts {or}]{and} tools shall be included in calculating the value of non-originating materials.]
 

[4.4.2] [Where the good is subject to a regional value content requirement, the accessories, [spare parts {or}]{ and} tools shall be considered to be originating or non-originating materials, as appropriate, for calculating the regional value content of the good.]
 

[Accessories, spare parts and tools, imported with a piece of equipment, machine, apparatus or vehicle which are part of the normal equipment and which are included in the price thereof or are not invoiced separately, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle.]
 

[The corresponding rule of origin shall be applied separately to each of the accessories, spare parts and tools that do not meet the above conditions.]
 

4.5) Packaging materials and containers for retail sale. 
 

[Packaging materials and containers in which a good is packaged for retail sale shall [, if classified as one with the good,][in accordance with General Rule 5b) of the Harmonized System,] be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification[[described] in [the] Annex ]] [to Article 1.3][as set out in Annex 1.3.]

[[Where the good is subject to a regional value content requirement][However, if the rule of Annex 1.3 applicable to the good contains a percentage for the maximum value of non-originating materials], the value of [such][any non-originating] packaging materials and containers shall be [taken into account][included] in calculating the [regional value content of the good.[value of non-originating materials].]
 

[Packaging materials and containers in which goods are packaged for retail sale shall be disregarded in determining the origin of the goods, where the packaging materials and containers are those used usually, and they are classified as one with the goods and are not priced separately.]
 

4.6) [Packaging] [Packing], materials and containers for shipment.
 

[4.6.1][[Packaging][Packing] materials and containers [of a good][in which a good is packed] for transport shall be disregarded [for the purpose of][in] determining [whether [all]the non-originating materials used in the production of the good [comply with] the applicable change in tariff classification required [and [the good satisfies a regional value content requirement.]]]][the origin of that good.]
 

[4.6.2][If the good is subject to the regional value content requirement, the value of the [packaging][packing] materials and containers for transport of the good shall be considered to be originating or non-originating, as appropriate, for calculating the regional value content of the good and the value of that material shall be the cost thereof reported in the accounting records of the producer of the good.]
 

[Packaging materials and containers in which goods are packed for shipment shall be disregarded when determining the origin of the goods.]
 

4.7) Indirect materials used in production
 

[ An indirect material shall be considered to be an originating material without regard to where it was produced [[and the value of that material shall be the cost thereof reported in the accounting records of the producer of the good][or other evidence providing a reasonable indication of its value]].]
 

[Indirect materials may include, among others, all those used in the production, verification or inspection of a good but that are not physically incorporated into it; or goods used for the maintenance of buildings or for operating equipment related to the production of the good, including:]
 

[In order to determine whether a good originates, it shall not be necessary to determine the origin of indirect materials used in production, testing or inspection of that good, but which have not entered into the final composition of the good or which have been used in the maintenance of equipment and buildings or the operation of equipment associated with the production of a good, including, but not limited to:]
 

[(a) energy and fuel;
 

(b) machines, tools, dies and moulds;
 

(c) spare parts and materials used in the maintenance of equipment and buildings;
 

(d) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and/or buildings;
 

(e) gloves, glasses, footwear, clothing, safety equipment and safety supplies;
 

(f) equipment, devices and supplies used for testing or inspecting goods; and
 

(g) catalysts and solvents.
 

(h) any other goods not incorporated into the good but whose use in producing the good can be reasonably demonstrated.], (12)
 

[Indirect materials shall be considered as originating materials for the purposes of this [Chapter].]
 

4.8) Intermediate materials used in production.
 

[An intermediate material means a material that is self-produced that contains non-originating inputs and satisfies the conditions required to qualify as originating, and which subsequently is used in the production of final goods in a Party. Non-originating inputs of intermediate materials shall be disregarded for classification of the origin of the final goods of which they are a part.]
 

[4.8.1 If a non-originating material undergoes {sufficient production}{substantial transformation} in the territory of one or more of the Parties, the resulting good shall be considered as originating and no account shall be taken of the non-originating material contained therein when that good is used in the subsequent production of another good.]
 

[4.8.2 For purposes of determining the origin of a good, a producer of a good may, at the producer's choice, designate any self-produced material used in the production of the good as a material to be taken into account as an originating or non-originating material, as the case may be, in determining whether the good satisfies the applicable requirements of the rules of origin.]
 

[Where materials containing any non-originating elements meet the conditions for being considered as originating specified in this [Chapter], and these materials are used in the production of final products in a Party, these materials shall be regarded as containing no such elements.]
 

[4.8.1 For purposes of calculating the regional value content in accordance with article 1.4, the producer of a good may designate as an intermediate material any self-produced material used in the production of the good, provided said material complies with the provisions of articles 1.1 to 1.3 and article 3.
 

3.7.2 When the intermediate good is subject to a regional value content requirement in accordance with the annex to article 1.3, it shall be calculated on the basis of the net cost methods established in article 1.4 and the good must satisfy all other applicable requirements of this chapter.
 

3.7.3 For purposes of calculating the regional value content of the good, the value of the intermediate material shall be the total cost that can be reasonably allocated to such intermediate material in accordance with the annex to article 1.4; moreover, the value of the intermediate goods used by the producer in the production of the good shall be the sum of the values of the non-originating materials, determined in accordance with article 1.5, imported from outside the territory of the party and that are used in the production of the good or that are used in the production of any material used in the production of the good.
 

4.8.4 If a material designated as an intermediate material is subject to a regional value content requirement, no other self-produced material subject to a regional value content used in the production of such intermediate material can, in turn, be designated by the producer as an intermediate material.]
 

5 ) OPERATIONS THAT DO NOT CONFER ORIGIN 
 

[5.1][A good shall not be considered to be an originating good simply by: 
 

a) mere dilution with [in]water or another substance that does not materially alter the characteristics of the good. ]
 

[b) simple operations for conserving the goods during transport or storage, such as airing, refrigeration, removal of damaged parts, drying or the addition of substances;
 

c) dusting, screening, classification, selection, washing, cutting;
 

d) packing, repacking or packaging for retail sale;
 

b) the collection of goods to make sets or assortments;
 

c) the application of marks, labels or other distinguising signs, and
 

d) cleaning, including the removal of rust, grease, paint or other coverings.]
 

[5.2. Any pricing activity or practice, the objective of which it can be sufficiently demonstrated is to circumvent the provisions of this chapter, shall not confer origin on a good]
 

[b) any production or pricing practice, in respect of which it is demonstrated on the basis of a preponderance of evidence, that the object was to circumvent the application of this [Chapter].]
 

[The following operations or processes, among others, alone or in combination, shall be considered insufficient to confer origin, when non-originating goods or materials are used:]
 

[A good shall not be considered to be an originating good simply by:
 

[a) operations or processes to ensure the preservation of the goods in good conditions for shipment or storage,
 

e) operations to facilitate shipping,
 

c) operations or processes related to packing or the presentation of goods for sale.]
 

For example:]
 

[- filtration and dilution with water or another substance that do not materially alter the characteristics of the good;

- operations intended to ensure the preservation of the good during its transport or warehousing, such as refrigeration, freezing or drying; 

- classification, 

- selection;

- packaging and repackaging;

- affixing of marks, labels and other like distinguishing signs; 

- division into lots or volumes; 

- husking or unshelling;]
 

[Minimal processing operations or a combination of such operations shall not prevent the conferring of origin to a good if it has been sufficiently transformed as a result of other operations or processes.]
 

[For the purposes of Article 1.3 and except for sets of Article 4.3 or of Annex 1.3, a good shall not be considered as having undergone sufficient production merely by reason of a change in tariff classification that is the result of:
 

(a) disassembly of the good into its parts; 
 

(b) a change in the end use of the good; 
 

(c) the mere separation of one or more individual materials or components from an artificial mixture; or
 

(d) packaging or repackaging of the good.]
 

[For the purposes of this [Chapter], the following operations or processes shall not be considered production or transformation processes:
 

a) handling to ensure conservation of the goods during transportation or storage, such as aeration, refrigeration, addition of substances, salting, extraction of damaged parts and similar operations;
 

b) operations such as dusting, washing or cleaning, sifting, peeling, husking, shelling, maceration, drying, thinning, classifying, selecting, dividing, screening, sifting, filtering, diluting in water, painting and thinning,
 

c) the formation of sets of goods, notwithstanding Article 4.3;
 

d) packing, packaging or repackaging;
 

e) combining or dividing packages;
 

f) the application of similar brands, labels or distinctive marks;
 

g) combinations of goods, provided the characteristics of the goods obtained are not essentially different from the characteristics of the goods that were combined;
 

h) the slaughtering of animals;
 

i) the application of oil; and
 

j) the accumulation of two or more of these operations.]
 

[Goods shall not be treated as originating if they are produced by an operation or process which consists only of one or more of the following: 
 

- operations to ensure the preservation of goods during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solution, removal of damaged parts, and like operations); 
 

- simple operations consisting of removal of dust, sifting or screening, sorting, grading, classifying, matching (including the making up of sets of articles), washing, painting or cutting up; 
 

- changes of packing; 
 

- affixing of marks, labels or other distinguishing signs on goods or their packaging; 
 

- simple mixing of non-originating materials if the characteristics of the goods as a whole are not essentially different from the characteristics of the materials which have been mixed.]
 

[5.3 The provisions of this article shall prevail over the specific rules established in the annex to article 1.3.]
 

6) DIRECT SHIPMENT, TRANSIT AND TRANSSHIPMENT
 

[In order for originating goods to receive preferential treatment, they must have been shipped directly from the exporting Party to the importing Party. For such purpose, direct shipment shall be considered: 
 

Goods transported without passing through the territory of [a][another] State [not][whether or not it is] a Party to the Agreement; or
 

Goods in transit through one or more States that are [or not] not Party[ies] to the Agreement, with or without transshipment or temporary warehousing, under the supervision of the competent customs authority, provided that:]
 

[- the transit is justified for geographical reasons or considerations related to transport requirements; 
 

- they are not [destined]{[designed for]}[commercial][trade or]use [or application] in the transit State;]
 

- they do not undergo, during their transport or [warehousing][storage], any operation other than[packing. packaging] loading, unloading or [handling][or operations] to keep them in good condition or ensure their conservation.]
 

[6.1 A good shall not be considered to be originating even when it has been produced in accordance with the requirements of article ro/a.1.1. if, subsequent to its production, the good undergoes further production or any other operation outside the territories of the parties, other than unloading, reloading or any other operation necessary to preserve it in good condition when transporting the good to the territory of the other party.
 

6.2 A good shall not lose its originating condition when, while in transit through the territory of one or more non-party countries, with or without transshipment or temporary storage, and under the supervision of the competent customs authority in those countries:]
 

[Goods shall be considered originating even if they have been produced in accordance with the necessary requirements if, subsequent to such production, outside the territory of the Parties, the goods undergo a subsequent transformation or any other operation, except their commercialization, unloading, reloading, and whatever other operation is deemed necessary to maintain the condition of the good or to transport it to the territory of the other Party.]
 

[An originating good that is transported through the territory of a non-Party shall be considered as non-originating unless it can be demonstrated that:
 

(a) the good undergoes no further production or other operation in the territory of that non-Party, other than unloading, splitting up of loads, reloading or any other operation necessary to preserve it in good condition; and
 

(b) the good remains under customs control while outside the territory of one or more of the Parties.]
 

[A good shall not be considered to be an originating good if the good undergoes subsequent production or any other operation outside the territories of the Parties, other than unloading, reloading or any other operation necessary to preserve it in good condition or to transport the good to the territory of a Party.]
 

[7) INVOICING CARRIED OUT BY THIRD PARTIES]
 

[Pursuant to the provisions of this [Chapter], goods that are originating shall receive tariff preferences, irrespective of the form or destination of the payment made by the importing Party. In this respect, the commercial invoice may be issued by a third party, [whether or not a member of the Agreement,] provided that the goods are shipped directly pursuant to the provisions of [this article.... ][Article 6].]
 

[8) DIFFERENTIAL TREATMENT]
 

[9) GENERAL PROVISIONS]
 

[9.1 Application]
 

[For purposes of this chapter: 
 

a) the basis for tariff classification is the harmonized system; 
 

b) the transaction value of a good or material shall be determined in accordance with the principles of the customs valuation code; and
 

c) all costs referred to in this chapter shall be recorded and maintained in accordance with the generally accepted accounting principles applicable in the territory of the party in which the good is produced.]
 

[9.2 Interpretation]
 

[In applying the customs valuation code under this chapter,

a) the principles of the customs valuation code shall apply to domestic transactions, with such modifications as may be required by the circumstances, as would apply to international transactions; and
 

b) the provisions of this chapter shall take precedence over the customs valuation code to the extent of any difference.]
 

[10. DEFINITIONS]
 

[For the purpose of this chapter,
 

customs authority follows the definition set out in the chapter on customs procedures; 
 

direct production costs and expenditures means the costs and expenditures incurred during a period in which they are directly to the good, other than the cost or value of direct materials and the cost of direct labor;
 

f.o.b. means free on board; 
 

fungible goods means goods that are interchangeable for commercial purposes, whose properties are essentially identical and for which it is impractical to differentiate one from another by a mere visual examination; 
 

fungible materials means materials that are interchangeable for commercial purposes and whose properties are essentially identical;
 

generally accepted accounting principles means the recognized consensus to the substantial authoritative support in the territory of a party, with regard to the recording of income, expenditures, costs, assets and liabilities, disclosure of information and preparation of financial statements. these standards can include both broad guidelines for general application and detailed practical standards and procedures.
 

good means any merchandise, product, article or material;
 

goods wholly obtained or produced entirely in the territory of a party means: 
 

a) mineral goods extracted in the territory of a party; 
 

b) vegetables harvested in the territory of a party; 
 

c) live animals born and raised in the territory of one a party; 
 

d) goods obtained from hunting or fishing in the territory of a party; 
 

e) fish, shellfish and other marine life taken from the sea by vessels registered or recorded with a party and flying its flag; 
 

f) goods produced on board factory ships from the goods referred to in subparagraph (e) provided such factory ships are registered or recorded with a party and flying its flag; 

g) goods taken by a party or a person of a party from the seabed or beneath the seabed outside territorial waters, provided that a party has rights to exploit such seabed; 
 

h) waste and scrap derived from: 
 

i) production in the territory of a party, or 
 

ii) used goods collected in the territory of a party, provided such goods are fit only for the recovery of raw materials; and
 

i) goods produced in the territory of one or more of the parties exclusively from goods referred to in subparagraphs a) through h), or from their derivatives, at any stage of production;

identical or similar goods means "identical goods" and "similar goods", respectively, as defined in the customs valuation code; 
 

indirect material means a good used in the production, testing or inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, including: 
 

a) fuel and energy; 
 

b) tools, dies and molds; 
 

c) spare parts and materials used in the maintenance of equipment and buildings; 
 

d) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; 
 

e) gloves, glasses, footwear, clothing, safety equipment and supplies; 
 

f) equipment, devices, and supplies used for testing or inspecting the goods; 
 

g) catalysts and solvents; and 
 

h) 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 a part of that production;
 

indirect production costs and expenditures means the costs and expenditures incurred during a period, other than the direct production costs and expenditures, direct cost of labor, and the cost or value of direct materials;
 

intermediate material means a material that is self-produced and used in the production of a good, and designated pursuant to article ro-a.4.8; 
 

material means a good that is used in the production of another good; 
 

net cost means total cost minus sales promotion, marketing and aftersales service costs, royalties, shipping and repacking costs, and nonallowable interest costs, in accordance with the provisions in the annex to this article; 
 

non-allowable interest costs means interest costs incurred by a producer on its financial obligations that exceed 10 percentage points above the highest interest rate of the debt obligations issued by the central or federal government of the party in which the producer is located, in accordance with the provisions of the annex to this article;
 

non-originating good or non-originating material means a good or material that does not qualify as originating under this chapter; 
 

packing containers and materials for shipment means goods used to protect another good during transportation, other than the containers and materials for retail sale;
 

producer means a person who grows, removes, harvests, fishes, hunts, manufactures, processes or assembles a good; 
 

production means growing, removing, harvesting, fishing, hunting, manufacturing, processing or assembling a good; 
 

related person means a person related to another person on the basis that: 
 

a) they are officers or directors of one another's businesses; 
 

b) they are legally recognized partners in business; 
 

c) they are employer and employee; 
 

d) any person directly or indirectly owns, controls or holds 25 percent or more of the outstanding voting stock or shares of each of them; 
 

e) one of them directly or indirectly controls the other; 
 

f) both of them are directly or indirectly controlled by a third person; 
 

g) together they directly or indirectly control a third person; or 
 

h) they are members of the same family (children, brothers, sisters, parents, grandparents, or spouses); 
 

sales promotion, marketing and after-sales service costs means the following costs related to sales promotion, marketing and aftersales service: 
 

a) sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials, exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing and after sales service literature (product brochures, catalogs, technical literature, price lists, service manuals, sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; entertainment; 
 

b) sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise incentives; 
 

c) salaries and wages, sales commissions, bonuses, benefits (for example, medical, insurance, pension), travelling and living expenses, membership and professional fees, for sales promotion, marketing and aftersales service personnel; 
 

d) recruiting and training of sales promotion, marketing and aftersales service personnel, and aftersales training of customers' employees; 
 

e) product liability insurance; 
 

f) office supplies for sales promotion, marketing and aftersales service of goods; 
 

g) telephone, mail and other communications for purposes of sales promotion, marketing and aftersales service; 
 

h) rent and depreciation of sales promotion, marketing and aftersales service offices and distribution centers; 
 

(i) property insurance premiums, taxes, cost of utilities, and repair and maintenance of offices and distribution centers; and 
 

(j) payments by the producer to other persons for warranty repairs;
 

self-produced material means a material that is produced by the producer of a good and used in the production of that good; 
 

shipping and repacking costs means the costs incurred in repacking a good and shipping the good outside the territory where the producer or exporter of the good is located; 
 

total cost means the sum of the following elements, in accordance with the provisions in the annex to this article: 
 

a) the cost or value of direct materials of production used in producing the good;
 

b) the cost of direct labor used in producing the good; and
 

c) {an} amount {for} direct and indirect production costs and {expenses} of the good reasonably allocated to same;
 

transaction value of a good means the price actually paid or payable for a good with respect to a transaction of the producer of the good, in accordance with the principles of article 1 of the customs valuation code, adjusted in accordance with the principles of article{s} 8.1, 8.3 and 8.4 {of} said code, regardless of whether the good is sold for export. for the purpose of this definition, the seller referred to in the customs valuation code shall be the producer of the good;
 

transaction value of a material means the price actually paid or payable for a material with respect to a transaction of the producer of the good, in accordance with the principles of article 1 of the customs valuation code, adjusted in accordance with the principles of article{s} 8.1, 8.3 and 8.4 {of}said code, regardless of whether the material is sold for export. for the purpose of this definition, the seller referred to in the customs valuation code shall be the supplier of the material and the buyer to which the customs valuation code refers to shall be the producer of the good;
 

used means used or consumed in the production of goods.]
 

[11) CONSULTATION AND MODIFICATIONS]
 

[11.1 The parties create the rules of origin committee, comprising representatives from each party, which shall meet at least twice a year, and at the request of any party.
 

10.2 The committee shall:
 

a) ensure effective implementation and administration of this chapter;
 

b) reach agreement on the interpretation, application and administration of this chapter;
 

c) in relation to non-allowable interest costs, revise on an annual basis, the percentage points on the highest interest rate of the debt obligations issued by the central or federal government, and
 

d) address any other matter agreed to by the parties. 
 

10.3. The parties shall consult regularly to ensure that this chapter is administered effectively, uniformly and consistently with the spirit and objectives of this agreement, and shall cooperate in the administration of this chapter. 
 

10.4 Any party that considers that this chapter requires modification to take into account developments in production processes or other matters may submit to the consideration of the committee a proposed modification along with supporting rationale and any studies that support it. the committee shall present a report to the commission for making the pertinent recommendations to the parties.]
 

[ANNEX TO ARTICLE 1.3
 

SPECIFIC RULES OF ORIGIN
 

(to be defined)]
 
 
 

[ANNEX TO ARTICLE 1.4
 

NET COST
 

Section A - Definitions
 

For the purposes of this annex:
 

allocation base means any of the following allocation bases used by the producer for calculating the percentage of the cost relative to the good:
 

a) the sum of the cost of direct labor and the cost or value of the direct material of the good;
 

k) the sum of the cost of direct labor, the cost or value of the direct material and the direct costs and expenditures for producing the good;
 

c) the hours or costs of direct labor;
 

d) units produced;
 

e) machine hours;
 

f) values of sales
 

g) area of the plant; or
 

h) any other bases considered reasonable and quantifiable;
 

non-allowable costs means the costs of sales promotion, marketing and afterservices, royalties, loading and repacking, as well as non-allowable interest costs;
 

for the purposes of internal administration means any procedure of allocation used for tax declarations , financial statements or reports, internal control, financial planning, decision making, pricing, cost recovery, administration of cost control or performance measurement.
 

Section B - Calculation of net cost
 

1. The net cost shall be calculated in accordance with the following formula:
 

nc = tc - nac
 

where:
 

nc = net cost
 

tc = total cost
 

nac = non-allowable costs
 
 
 

2. For the purpose of determining total cost:
 

a) when the producer of a good, for calculating the total cost relative to the good, uses the cost and expenses allocation method for purposes of internal administration in order to distribute to the good the costs of direct materials, the costs of direct labor or the direct and indirect costs of production, or part of same, and this method reasonably reflects the costs of direct materials, the costs of direct labor or the direct and indirect costs and expenses of production incurred in the production of the good, this method shall be considered a reasonable method of allocation of costs and expenses, and may be used for allocating costs to the good;
 

b) the producer of the good may determine a reasonable amount for costs and expenditures not allocated to the good, as follows:
 

i) for the cost or value of direct materials and the costs of direct labor, based on any method that reasonably reflects the direct materials and direct labor used in the production of the good; and
 

ii) in regard to the direct and indirect costs and expenses of production, the producer of the good may choose one or more bases of allocation that reflect a relation between direct and indirect production costs and expenses and the good, in accordance with the provisions of subparagraphs e) and f);
 

l) the producer of the good may use any reasonable method for allocating costs and expenditures, that shall be used throughout its fiscal year or period;
 

m) the following are not included in the concept of total cost:
 

i) costs and expenditures of a service provided by the producer of a good to another person, when the service is not related to the good;
 

ii) costs and losses resulting from the sale of a part of the firm of the producer which is a discontinued operation;
 

iii) the costs related to the accumulated effect of changes in the application of accounting principles;
 

iv) the costs or losses resulting from the sale of a capital good of the producer;
 

v) the costs and expenditures related to accidental cases or acts of god;
 

vi) the earnings of the producer of the good regardless of whether they are retained by the producer or paid to other persons, such as dividends and taxes paid on these earnings, including {taxes or}capital gains {taxes};
 

n) in relation to each base selected, the producer may calculate a percentage of the cost for each good produced, according to the following formula:
 

ab

pc = ____________ x 100
 

tab
 

where
 

pc = percentage of the cost or expenditure relative to the good
 

ab = allocation base for the good
 

tab = total allocation base for all the goods produced by the producer of the good;
 

o) the costs or expenditures relative to which an allocation base is selected are assigned to the good in accordance with the following formula:

cag = ca x pc
 

where
 

cag = costs allocated to the good
 

ca = costs or expenditures to be allocated
 

pc = percentage of the cost or expenditure relative to the good
 

p) in determining net cost, when the costs or expenditures mentioned in subparagraph d) are included in the total cost allocated to the good, the percentage of the cost or expenditure used for allocating said cost or expenditure to the good shall be used for determining the value of excluded costs or expenditures that shall be subtracted from the total cost allocated;
 

q) any cost or expenditure allocated in accordance with a reasonable cost allocation method that is used for purposes of internal administration shall not be considered reasonably allocated when it can be demonstrated that sufficient evidence exists that its objective is to circumvent compliance with the provisions of this chapter.
 

12. For purposes of determining the costs of non-allowable interest, the producer of the good shall:
 

a) consider for the calculation of non-allowable interests only the loans assumed with a fixed or variable interest rate higher than the highest interest of the debt obligations issued by the central or federal government, plus 10 percentage points;
 

b) calculate the interest rate paid {in}{for} the period chosen by the producer in accordance with paragraph 4, through the application of the following formula:
 

iep

ir = _______________ x 100

alp
 

where:
 

ir = interest rate during the period
 

iep = interest paid during the period
 

alp = amount of loans paying interest during the period;
 

for the purposes of this subparagraph, the amount of the loans paying interest and the amount of interest paid shall be those that correspond to the loans in accordance with the provisions of subparagraph a); and if the interest paid does not correspond to the entire period chosen by the producer, only the proportional amount of the loan shall be considered for the period in which the interest was paid;
 

c) calculate with the following formula the non-allowable interest rate, based on the determination of the interest rate paid and established in subparagraph a):
 

nir = irp - (iro + 10)
 

where:
 

nir = non-allowable interest rate
 

irp = interest rate paid during the period
 

iro = interest rate of debt obligations issued by the central or federal government
 

d) calculate with the following formula the cost of non-allowable interest
 

nic = nir x alp
 

where:
 

nic = non-allowable interest costs
 

nir = non-allowable interest rate
 

alp = amount of loans paying interest during the period;
 

for the purposes of this subparagraph, the amount of loans earning interest during the period shall be determined in accordance with the provisions of subparagraph b).
 

5. For the purpose of calculating regional value content of the good based on the net cost method, the producer of the good may average the calculation relative to the good, and to other identical or similar goods, produced in a single plant by the producer;
 

a) in one month; or
 

b) during any period of the producer's fiscal year greater than one month.
 

3. For the purposes of paragraph 4, the producer of the good shall consider all the units of the good produced during the chosen period. the producer may not vary the period, once it has been chosen.
 

6. When the producer of a good has calculated the regional value content of the good in accordance with the net cost method, based on estimated costs, including standard costs, budget {projects}{estimates} or other similar procedures, before or during the period selected in accordance with paragraph 4, the producer shall make the calculation on the basis of real costs incurred during the period relative to the production of the good.]
 
 
 

[CHAPTER ON] CUSTOMS PROCEDURES (13)
 

SECTION A. GENERAL PRINCIPLES [AND [OBLIGATIONS]]
 

Article 1. Transparency and dissemination
 

[1X.1. The Parties shall ensure that the preparation, adoption and application of their laws and regulations related to customs procedures do not constitute unnecessary obstacles to international trade.]
 

1.1. The Parties shall make known [in a prompt and easily accessible manner] to the other Parties and to the general public the laws, {regulations,}[{regulatory} provisions], {regulations,}[[[guidelines,] procedures] and [general] administrative [notices, and] rulings], including their modifications, governing customs [matters][procedures][rapidly and in a manner that is accessible given the legislation and resources of each Party[within a reasonable period of time] [in a manner [determined][allowed] by the national legislation] [[through their publication [and]][[through][in] the Internet] [or other means of dissemination][and ensure clarity and predictability of national requirements and procedures that affect international business operations and the timely clearance of goods]]
 

[1.2. Likewise, [specific] administrative decisions affecting [individuals][the interested party] shall be communicated to [those][the other][Parties][individuals][in a manner established in said legislation.] ]
 

[1.3. [Each Party][The Parties] shall designate, [establish,] and maintain one or more points of contact to address [or channel] inquiries from interested persons pertaining to customs [matters][procedures], and shall [publish or][make available] on the Internet [or other means of dissemination] information concerning [procedures][steps] for making inquiries of such contact points.]
 

[1.4. Each Party shall [publish][notify] in advance [of] any {[regulations pertaining to][legislative provisions on]}{[legislation][rule][regulation] pertaining to} customs matters [or changes to current customs procedures] that it proposes to adopt, and shall provide interested persons and [interested] Parties a reasonable opportunity to comment on such proposed regulations.]
 

[1.5. Nothing in this article shall require a Party: 
 

to make available on the Internet administrative [notices or] rulings issued prior to the entry into force of this Agreement; [or]
 

[to publish law enforcement procedures and internal operational guidelines related to conducting risk analysis and targeting, if the Party determines that such publication would interfere with law enforcement].]
 

[1.6. [For purposes of this [Chapter]] "Customs matters" means matters pertaining to the classification and valuation of goods for customs purposes, to rates of duty, border taxes and all other import and export charges, to [country of origin][origin determination] and eligibility for preferential treatment under this Agreement, and to all other procedural and substantive requirements, restrictions and prohibitions on imports and exports, including such matters pertaining to goods imported or exported by or on behalf of travelers.]["Customs procedures" are the set of rules that regulate customs activities, formalities and regimes applied or controlled by Customs Administrations.]
 

Article 2. Facilitation and Simplification [of Customs Procedures] 
 

[2.1. The Parties shall [continuously seek [and]][to]establish [simplified] procedures [associated with the timely and efficient movement and clearance of goods and people][for administering the different customs regimes][based on customs regimes,] [to reduce the administration and cost burdens placed on the international trading community,][based on the best practices agreed upon and generally recognized], while [fostering compliance with tax obligations[and monitoring of customs regimes] [and the protection of the interests of the States]] [maintaining appropriate enforcement and compliance capabilities]. Their objective shall be to thus establish harmonized [customs] procedures based on greater facilitation and simplification of these procedures.]
 

[The Parties will continually review, individually and as a group, the Customs legislation and practice in place in the Hemisphere to allow for the application of best practices and to provide for increasing application of easily understood and readily applied procedures, while providing at all times for the security of the revenue and protection of the interests of the States.]
 

[Article 3. Effectiveness and Efficiency]
 

[3.1. The Parties shall optimize procedures for clearance of goods [and travelers [luggage]] in order to [reduce costs[to agents and inconvenience to persons][and expedite clearance for goods and travelers]][facilitate international trade].]
 

[[3.1.] The [Parties shall seek to establish efficient] customs procedures [established by the customs administrations must be efficient], [considering proper] and effective [inspection methods]. [Use is to be made of selective and intelligent mechanisms that will enable monitoring to focus preferably on high-risk goods and travelers, facilitating speedy clearance of goods and rapid movement of travelers who pose less of a risk]]
 

[3.2. The Parties [undertake to increase the][shall foster greater] effectiveness [and efficiency] of their controls,[while preserving the interests of the State and of free competition.][by upgrading their infrastructure, training human resources, improving awareness among users, and making use of information technology and electronic media in their communications. In addition, the Parties shall establish mechanisms of coordination between State institutions involved in foreign trade [and in inspecting government revenues in fulfillment of this objective.]]]
 

[3.3. In order to achieve the above objectives, the Parties shall promote the use [and compatibility] of electronic means in their communications with users [and other Parties,] give priority to the use of information {technology}[and risk management] in inspections and establish mechanisms for collaboration between State institutions participating in foreign trade [[,border activities] or [in] public revenue enforcement].]
 

[3.4 The Parties shall develop [standard]methodologies [(benchmarks)] for periodically measuring and evaluating progress to fulfill these objectives.]
 

[3.5. In order to achieve the above objectives, the Parties shall promote the use of electronic means in their communications with users, give priority to the use of information {technology} in inspections and establish mechanisms for collaboration between State institutions participating in foreign trade or in public revenue enforcement.]
 

[The Parties recognize the critical need for effective and efficient administration of the Customs function. To this end, the Parties are committed to collaboration and co- operation to their mutual benefit over and beyond the terms of existing international agreements.]
 

Article 4. Automation
 

[4.1. The Parties shall [encourage the][endeavor to make] use of automation [in carrying out [and monitoring]][in their] customs [operations]. [For such purpose, the Parties shall consider internationally accepted standards][procedures and control]. ]
 

[4.2. [Each Party][The Parties] shall [adopt][encourage the establishment of] compatible electronic data interchange systems between [traders][users] and its customs administrations that foster expedited clearance procedures.]
 

[4.3. [Each Party][The Parties][should][shall][endeavor]adopt a [core set of data elements][common format [for data], in order to facilitate trade and facilitate][required for the administration of national customs regulations and requirements associated with the] customs clearance [of goods][; and work towards the adoption of a set of common data elements for customs clearance of goods between the Parties.]]
 

[4.4. [Each Party][The Parties][[should][shall] establish][shall {endeavor}{encourage} the establishment of] compatible electronic data interchange systems between customs administrations [that foster increased cooperation and [facilitate] information exchange.][between the customs administration and the trading community].]
 

[4.5. The Parties should develop parameters for the bilateral or plurilateral exchange of information related to compliance with customs regulations and requirements. ]
 

[4.6. In adopting and maintaining electronic data interchange systems, each Party shall [foster]: 
 

[a) [make][users' access to ] electronic systems [accessible [and available] to the trading community;]]
 

[b) [provide for] electronic [submission][presentation] and processing of information and data prior to arrival of the [shipment][goods][to allow for [their] release [of goods] upon arrival];]
 

[c) [make customs][the operation of] electronic/automated [customs] systems [work][in conjunction with risk analysis and targeting];]
 

[d) work toward developing compatible electronic systems among customs administrations; and]
 

[e) work towards developing a set of common data elements for customs clearance of goods.]]
 

[4.7. [Persons authorized][Users authorized by the customs administration] to use {[areas of]} the computer systems or means of electronic data transmission shall comply with the security measures established by {said regulations}{the customs authorities}, including those related to the use of bar codes and confidential or security passwords. Violation of the security measures and improper use of those systems shall be sanctioned pursuant to the [law established for such purpose.][national legislation of each Party]]
 

[4.8. [In developing these technological capabilities,] the Parties [accept] recognize that the pace of [such development will vary][automation and technology development varies] among the Parties[, and recognize that some Parties will need technical and financial assistance to achieve it.] ]
 

[The Parties acknowledge the increasing effective utilisation of automation in the execution of the Customs function. At the same time, the Parties note the varying degrees of application of automation in the Parties. 
 

The Parties are committed to the development of the technological capability of the Customs administrations of the Parties and accept that the pace of such development will vary among the States, and also that some Parties will need technical and financial assistance to this end.]
 

[Article 5. Cooperation]
 

[ 5.X.1.The Parties shall foster greater cooperation among the member administrations on issues relating to information exchange and data improvement. They shall also coordinate clearance procedures among non-customs border authorities.]
 

[5X.2. The Parties shall provide a foundation for technical assistance and exchanges of best practices on all customs-related matters.]
 

[5.1. The Parties shall determine [the basis for technical assistance,] mechanisms and procedures to establish effective cooperation [and consultations] between them, aimed at preventing, [detecting and] investigating [and prosecuting][illicit] customs-related [illicit] activities [that occur in their [respective] territory.]]
 

[5.2. Each Party shall make known to the other Parties any conduct or actions that could affect the legitimate interests of another Party. [, as per an appropriate Memorandum of Understanding [or Customs Mutual Assistance Agreements].]]
 

[5.3. The Parties shall provide mutual assistance, through the exchange of experiences and knowledge on the practices used in [the treatment for preventing or detecting] illegal and fraudulent operations.]
 

[5...X.3. The Parties shall establish mechanisms and procedures to provide for effective {communication}{cooperation} among them, in order to fulfill the requirements of technical and financial assistance in customs modernization processes as pertains infrastructure, technological development, automation, communications, training and efforts to combat fraud, to Parties that so need it.]
 

[The Parties recognize the critical need for effective and efficient administration of the Customs function. To this end, the Parties are committed to collaboration and co-operation to their mutual benefit over and beyond the terms of existing international agreements.]
 

Article 6. Integrity
 

[6X.1. The competent authorities shall implement established procedures for the recruitment, management and training of personnel to ensure a high standard of service to the international customs community and establish a system of internal staff controls, including a regime of sanctions against employees proven to have compromised integrity standards. ]
 

[[6.1. The Parties shall ensure compliance with national standards on [honesty][integrity] in [discharging][fulfilling] responsibilities. Likewise, the Parties shall adopt] and [at the same time shall] implement codes of conduct consistent with relevant international commitments.]
 

[ 6.1 The Parties recognize the importance of integrity in the performance of customs administration and shall adopt and put into practice codes of conduct for customs officials [in accordance with international recommendations on the matter].]
 

[6.2. The Parties shall ensure that their codes of conduct, legislation, policies or regulations applicable specifically to customs officials include provisions on standards of conduct, conflict of interest, [and possible][including] sanctions and disciplinary action. ]
 

[6.3 Customs administrations shall implement established procedures for the recruitment, management and training of personnel to ensure a high standard of service to the international trading community and establish a system of internal staffing controls.]
 

[The Parties undertake to establish and maintain vigorous enforcement of codes of conduct of customs officials, which will include established international commitments in this area and incorporate appropriate sanctions in the case of breaches.]
 

[Article 7. Combating fraud and other illicit customs-related activities]
 

[7.1. [The Parties [recognize the importance of][shall adopt] clear and effective provisions in [their] customs legislation[s][and corrective measures][to][for preventing, combating and sanctioning][detect, combat and punish][deal with] fraud and other illicit activities [committed by customs [agents] or officials.][The Parties shall enforce such legislation] and [will promote efforts to{]} update [it][them] in light of{]} procedural and technological changes.] [and review the appropriateness of the penalties provided]]
 

[Article 8. Administration]
 

[8.1. Each Party shall administer in a [uniform][consistent], impartial and reasonable manner all its laws, regulations,[decisions [,determinations, notices] and rulings] governing customs matters.]
 

[8.2. Each Party shall ensure that its laws and regulations governing customs matters are not prepared, adopted or applied with a view to or with the effect of creating [[arbitrary or] unwarranted procedural] obstacles to international trade.]
 

[Article x. Membership to the World Customs Organization
 

x.1 Each Party shall be a member of the World Customs Organization by the second anniversary of entry into force of this Agreement.]
 

[B. {OTHER} CUSTOMS PROCEDURES RELATED TO THE ENTRY OF GOODS] (14)
 

[Article 9. Advance Rulings]
 

[9.1. Each Party shall provide for the expeditious issuance of written {advance} rulings, prior to the importation of a good into its territory, to an importer in its territory or an exporter or a producer in the territory of another Party, on the basis of the facts and circumstances presented by such importer, exporter or producer of the good, concerning the application of its customs [laws [and regulations]] [legislation][to an import transaction, including classification, valuation, country of origin[, or eligibility for preferential treatment under this Agreement].]
 

[9.2. Each Party shall adopt procedures for the issuance of advance rulings [and their confidentiality], including a detailed description of the information required to process an application for a ruling [and the procedures for claiming that information contained in that application is confidential business information]].]
 

[9.3. [Each Party][The Parties] shall provide that [its][their respective] customs administration: 
 

may, at any time during the course of an evaluation of an application for an advance ruling, request supplemental information from the person requesting the ruling; 
 

shall, after it has obtained all necessary information from the person requesting an advance ruling, issue the ruling within [120] days; [and][including a full explanation of the reasons upholding the ruling]
 

shall, [upon request of the person who requested the advance ruling,] provide [to that][the] person[requesting an advance ruling][a full][an] explanation of the reasons for the ruling.]
 

[9.4. Subject to paragraph 9.5, each Party shall apply an advance ruling to importations into its territory of the good for which the ruling was requested, beginning on the date of its issuance or such later date as may be specified in the ruling [, except where there is a request for immediate application of a modified ruling under Article 9.5 of this[Chapter].][Each Party shall provide to any other person the same treatment as it provides to a person to whom it issued an advance ruling, provided that the facts and circumstances are identical in all material respects.]]
 

[9.5. The issuing Party may modify or revoke an advance ruling upon a determination that[:][such a ruling was based on {an error of fact or law, or}]{[:]} 
 

[(a) the ruling was based on an error;
 

(c) of fact or law, or
 

(ii) in the classification, value or origin of a good or material that is the subject of the ruling; 
 

(b) there is a change in law, material fact, or circumstances on which the ruling is based;
 

(c) the ruling does not conform with a judicial decision; or
 

(d) the ruling does not conform with a modification to the applicable rules of origin in this Agreement]
 

[if there is a change in law, material fact, or circumstances on which the ruling is based.]
 

Each Party shall provide that a modification or revocation of an advance ruling shall be effective after a period of not less than 60 days from its [issuance or] publication, unless the person who received the ruling requests that it be applied upon its publication. [The issuing Party shall postpone the effective date of such modification or revocation for a period not less than 90 days where the person to whom the advance ruling was issued has relied in good faith[to its detriment] on that ruling.]]
 

[9.6 Each Party shall provide that where it issues an advance ruling to a person that has misrepresented or omitted material facts or circumstances on which the ruling is based or has failed to act in accordance with the terms and conditions of the ruling, the Party may apply such measures as the circumstances may warrant.]
 

[Article 10. Review and appeal]
 

[10X.1. Each Party shall grant the same rights to review and appeal on any [determination or] advance ruling by its customs administration as it provides to importers in its territory to any person who has received an advance ruling or determination.]
 

[10.1. With respect to determinations relating to customs matters, each Party shall provide that importers in its territory have access to: 
 

a) at least one level of administrative review independent of the official or office responsible for the decision under review; and 
 

judicial [or quasi-judicial] review of the decision taken at the final level of administrative review.]
 

[Each Party will establish procedures for the review of decisions by the Customs authorities, including at least one level of administrative review.]
 

[Article 11. Confidentiality]
 

[11.1. Each Party shall maintain the confidentiality of [confidential] business information [[provided in connection with the administration of its customs laws, and shall not disclose such information][without the specific permission of the person or government providing such information], except to the extent that it may be used or disclosed for law enforcement purposes or in the context of judicial proceedings][in accordance with its national legislation [and international agreements signed on the matter]].]
 

[11.2. [Each Party shall specify procedures by which persons or governments may claim that information provided in connection with administration of Customs laws is entitled to treatment as confidential business information under this Agreement.] [The information provided on a confidential basis by a Party shall be treated as such by the other Party.]]
 

[11.3. [For purposes of this [Chapter],]["confidential information" means information whose disclosure would have an adverse effect on the person providing the information or on the third party it was received from.] ["confidential business information" means information that is by nature confidential and which is not already published, generally available to third parties, or [otherwise] in the public domain. [Confidential business information includes information the disclosure of which [would [be of] [provide a] significant competitive advantage to a competitor or would have a significantly adverse effect upon a person supplying the information or upon a person from whom that person acquired the information.][could prejudice the competitive position of the person providing the information.] Examples of such information may include [but is not limited to]: 
 

the terms of sale or contracts relating to importations, including information with respect to transaction quantities and prices; 
 

internal costs and prices, including manufacturing costs; 

manufacturing processes; and 
 

profit margins.]]]
 

[11.4. Nothing in this Article shall be construed to limit the collection and publication of aggregate import [and][or] export statistics.]
 

[11.5. Nothing in this Article shall preclude the Parties from sharing information between governments for law enforcement [, as per an appropriate Memorandum of Understanding or Customs Mutual Assistance Agreement[s]] or customs administration purposes.]
 

[Article 12. Penalties]
 

[12.1. Each Party shall maintain measures imposing [civil or administrative penalties and, where appropriate,[criminal penalties], for violations of its customs laws and regulations [and other customs rules][governing classification, valuation, country of origin, and eligibility for preferential treatment under this Agreement]]. [in accordance with its national legislation and relevant international treaties and conventions when an official or employee of the Customs Administration, in carrying out his or her responsibilities, violates domestic laws, to the detriment of individuals who are nationals or are [nationals] from any of the other Parties. Customs administrations shall establish monitoring mechanisms that minimize the opportunity for the commission of unlawful acts.]]
 

[12.2 The Parties shall provide for a review and appeal process as outlined in Article 10.1 for persons who have been assessed a customs-related infraction.]
 

[Article 13. [Release][Clearance] and security] 
 

[13.1. Each Party shall adopt procedures providing for the [release][clearance] of goods within a period of time no greater than that required to ensure compliance with its [customs][[national] laws][legislation].]
 

[13.2. Each Party shall adopt procedures allowing, to the extent possible, goods to be released within [48][24] hours of [arrival][presentation to customs].]
 

[13.3. Each Party shall [adopt][encourage the adoption of] procedures allowing, to the extent possible, goods to be[released][cleared] at the point of arrival, without interim transfer to customs warehouses or other locations.]
 

[13.4. Each Party shall adopt procedures allowing for deferred payment of duties accruing on entries of goods.]
 

[13.5. Each Party shall adopt procedures allowing [exporters][importers] to withdraw goods from customs prior to the final computation or ascertainment of the duties accruing on entry of the goods.][upon acceptance of the corresponding security.]
 

[13.6. Parties may require importers to provide security as a condition the release of goods, [when such security is required to ensure that obligations arising from the entry of the goods will be fulfilled][in accordance with the provisions of their national legislation ].]
 

[13.7. Each Party shall ensure that the amount of any security shall be no greater than that required to ensure that obligations arising from the entry of the {[}goods{][merchandise]} will be fulfilled {[in accordance with its domestic legislation]} [. The amount of the security required to ensure payment of duty and taxes shall not exceed the amount chargeable, based on tariff rates under domestic and international law, including this Agreement, and on valuation in accordance with the Agreement on Implementation of Article VII of GATT 1994, an annex to the Marrakesh Agreement Establishing the World Trade Organization.]{[in accordance with its domestic legislation]}][No security shall be required for: (list to be established - e.g.: commercial samples, business traveller goods)]
 

[13.8. Each Party shall ensure that any security shall be [discharged [or] returned] as soon as possible after its customs administration is satisfied that the obligations under which the security was required have been fulfilled.]
 

[13.9. Each Party shall adopt procedures allowing: 
 

importers to provide security in the form of bonds or other non-cash financial instruments; 
 

importers that regularly enter goods to provide security in the form of continuous bonds or other non-cash financial instruments covering multiple entries; and 
 

importers to provide security in any other forms specified by the Customs Administration.]
 

[13.10. The Parties will also provide mechanisms for the cancellation of such security and the [timely] refund to the importer of any amount found to be in excess of duty actually paid when all the necessary documentation is made available to and is checked by the Customs Authorities and the actual amount due and payable is assessed and secured.]
 

[Article 14. Harmonized System] 
 

[14.1. Each Party shall ensure that its customs tariff and statistical nomenclatures are in conformance with the Harmonized System established pursuant to the International Convention on the Harmonized Commodity Description and Coding System, as provided in Article 3 of [the][such][Convention][Covenant].]
 

[14.2. The application by each Party of the Harmonized System does not impose obligations in relation to rates of customs duty. The tariff concessions and rules of origin under this Agreement are expressed in terms of the customs classifications and interpretations of tariff nomenclatures applicable to each Party at the time of the entry into force of this Agreement.]
 

[Article 15. Risk analysis/targeting methodology] 
 

[15.1. Each Party shall [[foster the development of][design] customs procedures and processing and clearance systems that include risk assessment and targeting methodologies for identifying high and low-risk goods.][adopt and employ risk management systems as criteria for required verification activities, while respecting the confidentiality of information, in order to focus customs enforcement activities on high-risk goods [and travelers] while facilitating clearance and movement of low-risk goods [and travelers]. Such procedures [shall][may] include: 
 

processing and release customs procedures and systems that include risk analysis and targeting to identify high-risk [travelers,] goods and shipments; and 
 

[risk analysis through processing prior to the arrival of goods [and travelers] of information and data to identify or target high-risk goods [and travelers] and shipments that will be subject to inspection and/or other customs procedures].]]
 

[Article 16. Preshipment inspection]
 

[16.1. No Party shall engage in {[}pre-shipment{]} inspection activities carried out on the territory of a Party, whether such activities are contracted or mandated by the government, or any government body, of a Party.]
 

[16.2. "Preshipment inspection activities" are all activities relating to the verification of classification, valuation, country of origin, and eligibility for preferential treatment under this Agreement of goods to be exported to the territory of a Party that contracts for or mandates the use of such activities.]
 

[SECTION B. OTHER CUSTOMS PROCEDURES RELATED TO THE ENTRY OF GOODS] (15)
 

[Article 17. Temporary admission [/importation] of goods] 
 

[17X.1. The Parties shall include in their national legislation procedures allowing for the temporary admission or importation of goods, in order to facilitate the operations of international trade.]
 

[[17.1. For the purpose of granting the temporary admission of goods referred to in Article ___ of [Chapter] ___ (National Treatment and Market Access) of this Agreement: 
 

a) such entry shall be requested by a national or resident of another Party, except when this involves goods indicated in paragraph ___ (publicity films) of said Article; and 
 

b) [the good shall leave the territory within the authorized time period.]]
 

[ b) the good
 

i. must be used by the visitor, or under that person's {professional} supervision, in the exercise of the activity, trade or profession of that person, or for display or demonstration in the case of commercial samples and advertising films; 
 

ii. not be sold or leased while in the territory;
 

iii. be identifiable;
 

iv. be presented in quantities no larger than reasonable given the use to be made of the goods, and
 

v. leave the territory within the authorized time period.
 

[c) security is posted for the charges that would be owed in the case of final importation, reimbursable when the good leaves. No security shall be required when the good is originating, or in the case of goods indicated in article]]]
 

[17.1. Each Party shall grant duty-free admission for the following articles, imported by or for the use of a resident of another Party: 
 

a) professional equipment, including software and broadcasting and cinematographic equipment, necessary for carrying out the business activity, trade or profession of a business person which qualifies for temporary admission pursuant to the laws of the importing country; and 
 

b) articles intended for display or demonstration, including commercial samples [, product or service literature] and advertising films.]
 

[17.2. No Party may condition the duty-free temporary admission of a good referred to in the preceding Article, other than to require that such good: 
 

be used solely by or under the professional supervision of a resident of another Party in the exercise of the business activity, trade or profession of that person, or for display or demonstration [in][including][the case] of commercial samples [,product or service literature] and advertising films; 
 

not be sold or leased while in its territory; 
 

[be accompanied by a security in an amount no greater than [x% of ] the charges that would otherwise be owed on entry or final importation, releasable on exportation of the good. [No security shall be required when the good is originating [, or in the case of goods indicated in paragraph ___ (advertising films) of Article ___, cited above;]]]
 

[[shall] be identifiable at the time of its exportation; ]
 

be exported on the departure of that person or within such other period of time as is reasonably related to the purpose of the temporary admission, initially up to one year from date of importation or such longer period as a Party may establish; 
 

be imported in no greater quantity than is reasonable for its intended use; and 
 

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

[17.3. When the requirements for temporary admission are not met, the Parties shall apply the corresponding tariffs and any other charges that would apply in the case of final importation of the good, and sanctions pursuant to national legislation.]
 

[17.4. In the case of [entry and] temporary admission of containers and vehicles for the international transport of goods, the Parties shall authorize their exit by any rapid and economical route. Said containers or vehicles may exit through ports other than the port of entry without any charge, condition, or bond being imposed as a result thereof. The vehicle or carrier that removes a container from the territory of a Party may be different from that used in bringing it into the territory. For these purposes, a vehicle shall be understood to mean: a truck, truck tractor, tractor-trailer, or tractor-trailer unit, locomotive, {trailer}{car} or other railroad equipment.]

[17.5. Each Party, through its Customs administration, shall adopt procedures providing for the expeditious [release][clearance] of the articles subject to temporary admission. To the extent possible, when such goods accompany a resident of another Party seeking temporary admission, and are imported by that person for use in the exercise of a business activity, trade or profession of that person [or for personal use as household effects for that person], the procedures shall allow for the articles to be [released][cleared] simultaneously with the entry of that person. ]
 

[17.6. Each Party shall, at the request of the person concerned and for reasons deemed valid by the national customs authorities, extend the time limit for temporary admission beyond the point initially fixed.]
 

[17.7. Each Party shall permit temporarily admitted goods to be exported through a customs port other than through which they were imported.]
 

[17.8. Each Party shall relieve the importer of liability for failure to export a temporarily admitted good upon presentation of satisfactory proof to customs authorities that the good has been destroyed within the original time limit for temporary admission or any lawful extension.]
 

[Each Party will provide procedures related to the temporary importation of goods, which will allow for the provision by the importer of security for the revenue which security should not exceed the duty and taxes ordinarily payable on the goods, and which will be cancelled or refunded, as the case may be, on proof of exportation of the goods within the time period allowed by the Customs authorities.]
 

Article 18. Reimportation of goods
 

[18.1. The Parties [will maintain][shall include in their {national}{domestic}] legislation [procedures] which allow[s] for the [duty-free] reimportation of goods [free of duty] where these goods were declared to the Customs Authorities on exportation and where these goods have been returned in the same state or condition in which they were exported.]
 

[18.1. For purposes of allowing for the reimportation [envisaged in Article ___ of [Chapter] ___ (National Treatment and Market Access) of this Agreement,][of goods exported to another Party for] repairs or alterations shall not destroy the essential characteristics of the good or change it into a new or commercially different good. Operations to transform an unfinished good into a finished good shall not constitute repair or alteration, without prejudice to a part of the good being subject to repair or alteration.]
 

[Article 19. Importation of commercial samples and printed advertising materials] 
 

[19X.1.The Parties shall promote inclusion in their national legislation of procedures that allow for the importation of commercial samples and printed advertising materials, in order to facilitate and streamline clearance processes, maintaining, at the same time, customs control activities.]
 

[19.1. [The Parties shall provide that] For purposes of {providing}{qualifying for} the duty-free importation[envisaged in Article ___ of [Chapter] ___ (National Treatment and Market Access) of this Agreement], the following requirements shall be met: 
 

commercial samples: 
 

i) shall only be for the purpose of gaining orders for goods or services from the other Party, independent of whether or not the goods are originating or whether or not the services are being provided from the territory of another Party or from a non-Party country; and 
 

ii) [they may not be valued at more than xx, [nor may they] be marked, broken, perforated, or treated {in any way other than for purposes of sale or use}{such as to render them unfit for sale or use other than} as samples]. 
 

printed advertising materials: 
 

i) shall correspond to the classifications in Chapter 49 of the Harmonized System; 
 

[ii) shall be imported in packages that do not contain more than one copy of each printed item;] and 
 

iii) the materials and packages may not be part of a larger shipment.]
 

[Article 20. Express shipments][ Express shipments clearance] 
 

[20.1. [Each Party][The Parties][shall adopt procedures to expedite][shall include in their national legislation procedures that facilitate and streamline clearance procedures for] express shipments, [while] maintaining [the appropriate][custom] control [and customs selection][activities]. [Such procedures shall:
 

[a) be consistent and as common as possible between the Parties]
 

provide for separate expedited customs processing for express shipments; 
 

provide for pre-arrival processing of information and data related to express shipments; 
 

permit submission of a single manifest covering all of the goods in the shipment by the express service company, through, if possible, electronic means; 
 

where possible, and with the appropriate guarantees, provide for the release of certain goods through submission of minimal documentation [and deferred payment]; and 
 

provide, in normal circumstances, for the release of express shipments within 6 hours of the submission of necessary customs documentation [for release], provided the shipment has [arrived at the customs facilities][been presented to customs].]]
 

[The Parties will [provide]arrangements for accelerated release of goods consigned to courier services and like entities.]
 

[Article 21. Low value shipment transactions]
 

[21..X.1.The Parties shall promote inclusion in their national legislation of procedures that allow for the importation of low-value shipments, in order to facilitate and streamline clearance procedures and maintaining, at the same time, customs control activities.]
 

[21.1. Each Party shall adopt simplified, streamlined and expedited procedures for low value shipments, while maintaining the appropriate customs control and selection. Such procedures shall: 
 

a) establish minimal documentation, data and procedural requirements; 
 

[b) permit [and encourage] the electronic submission of information prior to arrival of the goods; and]
 

c) allow importation without the use of a customs broker.]
 

[21.2. "Low value shipments" are importations whose value does not exceed the amount of (US)$1,000 or its equivalent amount in the country's currency or such higher amount as a Party may establish, provided that such importation does not form part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of meeting the minimum value requirement, and subject to the exceptions listed in Annex ___.]
 

[21.3. The Parties will provide that, to the extent possible and as appropriate, low-value goods be admitted free of duty.]
 

[Article 22. Clearance for {domestic} [home] use]
 

[22.1. The Parties will provide for the refund of duty and shall publish the circumstances in which such refund may be granted.]

[Each Party will maintain legislation and administrative arrangements which provide for procedures regarding - 
 

- the presentation by importers of declarations related to entry of goods along with prescribed supporting documentation; and 
 

- the expeditious assessment of those declarations by the customs authorities. 
 

In addition, each Party will provide for refund of duty and shall publish the circumstances in which such refund may be granted.]
 

[Article 23. Definitions]
 
 
 

[CHAPTER ON] [CUSTOMS] PROCEDURES RELATED TO RULES OF ORIGIN (16)
 

DECLARATION AND CERTIFICATION
 

1.1 Declaration and certification.
 

1.1.1[[[The certificate of origin ]["certificate of origin" (17)][certification] is the [only][document] [statement, in written or electronic form,][certifying][accrediting] that the goods are in compliance with the provisions governing origin set forth in this [Chapter][Agreement]and, thus,]][The Parties shall establish, prior to the implementation of this Agreement, a "certificate of origin" for the purpose of an exporter or producer certifying that a good being exported from the territory of a Party into the territory of another Party qualifies as an originating good as set forth in [Chapter] X.[Certified goods] are entitled to the benefits of the preferential treatment agreed to by the Parties]. [The certificate of origin]["certificate of origin"][certification] shall be issued by [the exporter/[producer]][ the entities authorized by the exporting Party for such purpose ][ the importers ].][The certificate of origin shall be prepared by the exporter in the country of final production who will present it to the authorized body in the exporting Party.]
 

[The certificate of origin ]["certificate of origin"][certification]shall be issued by the entities authorized by the exporting Party, without prejudice to deciding that the certificate may be granted directly by the exporter/{importer}{producer}.
 

The original document must be presented at the time customs is cleared for importation, together with the corresponding commercial invoice.]
 

[Each Party may require that the certificate or declaration of origin for a good imported into its territory be completed in the language required under its law.]
 

[The certificate of origin referred to in Annex 1 of this Article shall be used to certify that a good exported from the territory of one {part}{Party} to the territory of another {part}{Party} qualifies as an originating good.]
 

[1.1.2 [A] [The][certificate of origin ]["certificate of origin"][certification]shall be [made][[not necessarily be subject to a][not be limited to a] prescribed format, provided that [[it is in electronic form]][with the][a core set of data elements, to be determined by the Parties, is supplied and bears the] signature of the authorized issuer.]]
 

[Single formats will be established for both [the certificate of origin ]["certificate of origin"][certification] and the declaration of origin.]
 

[The certificate of origin ]["certificate of origin"][certification]shall include:
 

a) a declaration by the exporter that the origin requirements prescribed in the [Chapter] on Rules of Origin have been met;
 

b) a certificate by the authorized body {in the exporting Party} that the declaration by the exporter is accurate.]
 

1.1.3 [[In the event that the exporter is not the producer,] for the [{certificate of origin}], ["certificate of origin"][certification] the [exporter][competent government authorities or the authorized agencies][shall [have a sworn declaration [provided by][of origin from] the producer ] ][may complete [and sign] a [certificate of origin]["certificate of origin"][certification]on the basis of reasonable reliance on the producer's written representation that the good qualifies as an originating good.] [[have a declaration of origin][issue the certificate based on: a) his knowledge of whether the good qualifies as originating; b) a written declaration by the producer that the good qualifies as originating; or c) the declaration of orgin issued by the producer] provided voluntarily by the producer of the good ]. The declaration of origin shall be valid for a maximum of [____ years][year] from the date of its signature.]
 

[The certificate of origin ]["certificate of origin"][certification]shall be backed by a sworn declaration by the final producer or the exporter that the good fulfills the provisions on origin in the Agreement.]
 

[1.1.3 The declaration of origin from the producer shall be valid for a period of no more than two (2) years, unless there is a change in the conditions of production before then.]
 

[Each Party shall provide that:
 

a) where an exporter is not the producer of the good, the exporter may complete and sign [the certificate of origin ]["certificate of origin"][certification]on the basis of: 
 

i) its knowledge of whether the good qualifies as an originating good, 
 

ii) its reasonable reliance on the producer's written declaration that the good qualifies as an originating good, or 
 

iii) a [certificate of origin ]["certificate of origin"][certification] or a declaration of origin; and 

b) the declaration of origin for the exported good is completed and signed by the producer of the good and provided voluntarily to the exporter. The declaration shall be valid for a maximum of two (2) years, as of the date it is signed.]
 

[Where an exporter is not the producer of the good, the request for the certificate of origin shall be backed by a declaration of origin drawn up and signed by the producer of the good, in compliance with Annex 2 to this Article, and by the corresponding documentation under paragraph 1.A.6 of Article 1.A covering the exported good. The producer of the good shall voluntarily provide the exporter with the declaration of origin and the corresponding documentation.
 

The certificate referred to in paragraph 1.1.1 shall contain a sworn declaration by the exporter of the good, attesting total compliance with the origin provisions of the Agreement and the truthfulness of the information contained therein.]
 

1.1.4 [Each Party shall stipulate that][the certificate of origin]["certificate of origin"][certification] [signed by the producer or exporter in the territory of the other Party] [covers][shall cover] a single importation of one or more goods [ into the territory of one of the Parties and shall be presented upon requesting customs processing]; or [ multiple importations of identical goods by the same importer, within a specific period established in the certificate,[not to exceed ____ [months][[1] year[s]]].]
 

[The certificates may not be issued prior to the date on which the invoice is issued. The description of the good must match the description for the nomenclature code indicated on the invoice.]
 

[The certificate of origin shall cover a single exportation.]
 

1.1.5 [For the purposes of its presentation for customs clearance][The certificate [ of origin]shall be valid [ for ___ days ] [ for ___ years ], from the date of its [signature][issuance].][and must be filled out in the language of the importing Party or the exporting Party. In the latter case, the competent authority of the importing Party may demand that the document be translated.]
 

[In the event that the goods are temporarily cleared, admitted or stored under control of the customs authority of the Party of destination, the certificate of origin shall remain in effect for the additional amount of time the customs administration has established for said operations or regimes.]

[The date of certification should be the same as or later than the date on which the business invoice was issued. For purposes of certifying origin, the business invoice must be presented in every case along with the certificate of origin].
 

[When the goods being traded are invoiced by a third country, regardless of whether it is a Party to the Agreement or not, the producer or exporter of the country of origin must declare that the goods will be marketed by a third party, and provide the name and other information on the business that will ultimately invoice the operation of destination.]
 

[1.A Issuance of the certificate of origin
 

1.A.1. The issuance of the certificate of origin shall be the responsibility of the certifying authorities of each Party. Each Party shall designate one or more certifying authorities to be responsible for issuing certificates of origin, which may act under federal, national, state or departmental jurisdiction, taking into consideration their representativeness, technical capacity and suitability for providing such service. The certifying authority established by each Party shall be responsible for monitoring the issuance of the certificate of origin.
 

1.A.2. The names of the certifying authorities, as well as the registry of the signatures of the officials accredited to issue certificates of origin shall be those that the Parties notify or have notified to the other Parties, whether for the registration process or for any change made to such registries.
 

1.A.3. Requests for the issuance of the certificate of origin shall be made by the final producer or exporter of the good in question, in accordance with paragraph 1.A.6.
 

1.A.4. The certificate of origin shall be issued no later than five (5) working days after submission of the corresponding request, in accordance with the stipulations of this Article, and it shall remain in force for one hundred and eighty (180) days following its emission. Certificates shall be issued solely on the forms agreed on by the Parties under Annex 1 to Article 1.1. Certificates without all their fields duly filled out shall not be valid.
 

1.A.5. The certificate of origin may not be issued prior to the issue date of the commercial invoice corresponding to the operation in question; it must either be issued on the same date or within sixty (60) {days} following said issuance.
 

1.A.6. For the certificate of origin to be issued, the certifying authority must be presented with the corresponding request, along with, when applicable, the declaration of origin as described in paragraph 1.1.3 of Article 1.1 and all the background information necessary to document that the good meets the applicable requirements, such as:
 

name, corporate name, or commercial name of the requesting party;
 

legal domicile for tax purposes;
 

name of the good to be exported and its tariff classification under the H.S. The description of the good must agree with that in the tariff classification under the H.S. and with that set forth on the exporter's commercial invoice;
 

evidence showing that the good to be exported complies with the provisions of Article 1.1, 1.2, or 1.3 and with the other conditions eligible for preferential tariff treatment under this Agreement; 
 

evidence for the following components of the good, indicating origin, tariff classification under the H.S., and, when applicable, value pursuant to Article 1.5 of the Chapter on Rules of Origin and the percentage they represent in the value of the final good:
 

national materials, components, and/or parts and pieces, indicating:

materials, components, and/or parts and pieces originating in other Party, indicating:

non-originating materials, components, and/or parts and pieces:
 

descriptive summary of the productive process; and,
 

sworn statement attesting the truthfulness of the information provided.
 

1.A.7. The request referred to in paragraph 1.A.6 shall be submitted sufficiently in advance for each certificate request. The requesting party shall maintain the necessary background information to document the good's compliance with the applicable requirements and make it available to the certifying authority that is to issue the certificate or to the customs authority of the importing Party when so requested.
 

1.A.8. When a good is exported in a regular fashion, the request referred to in paragraph 6 shall remain in force for up to three hundred and sixty-five (365) days or until such time as the circumstances or facts upon which it is based change
 

1.B Subsequent issuance of the certificate of origin
 

1.B.1. Irrespective of the provisions of Article 1.A, the certifying authority may issue a certificate of origin on an exceptional basis after the good or goods in question are exported, if:
 

a) it was not issued at the time of export on account of errors, involuntary omissions, or special circumstances; or,
 

b) it can be shown to the satisfaction of the certifying authority that a certificate of origin was issued but was not accepted at the time of importation for technical reasons.
 

1.B.2. For the purposes of enforcing paragraph 1.B.1., in the request, the exporter or producer shall indicate where and when the goods covered by the corresponding the certificate of origin were exported and the reasons behind the request.
 

1.B.3. The certifying authority may subsequently issue a certificate of origin only after verifying that the information provided by the exporter or producer on the request coincides with that appearing in the corresponding file, and in the case of the goods referred to in paragraph 1.B.1(a) it shall be accepted by the customs authority of the importing Party within 180 days following the date on which importation into that Party occurred.
 

1.B.4. A certificate of origin issued subsequently shall be endorsed with the following phrase: "ISSUED SUBSEQUENTLY," and recorded in the "Comments" field on the certificate of origin.
 

1.C Issuance of duplicate certificates of origin 
 

1.C.1 Should a certificate of origin be stolen, lost, or destroyed, the exporter may request a duplicate from the issuing certifying authority. Said duplicate shall be issued on the basis of the export documents that it already has, pursuant to the terms of Article 1.A.
 

1.C.2. A duplicate issued in this fashion shall be marked with the word "DUPLICATE" in the "Comments" field of the good's duplicate certificate of origin. 
 

1.C.3. The duplicate, upon which the issue date of the original certificate of origin shall appear, shall be valid as of that date].
 

[1.1.6 Exceptions.]
 

[ certificate of origin ]["certificate of origin"][certification ] shall not be required: [ The Parities shall not require a certificate of origin for imports of goods in the following instances ]
 

- for [commercial importation [or importation] for][importations of]non-commercial [purposes of][(casual)] goods [imported and presented before customs as a personal importation.][for commercial goods imported as low value shipments.][whose customs value does not exceed US$[___][1000][1,000 U.S. dollars or its equivalent in the domestic currency of the importing Party][or a greater value established by each Party ].][ In importations for commercial purposes, the importing Party may require that the invoice contain or be accompanied by a declaration by the importer or exporter stating that the good qualifies as an originating good;]

[- [in the importation][for importations] of goods for which the importing Party has waived the requirement to present a [ certificate of origin ]["certificate of origin"][certification]]
 

[These exceptions shall only [govern][apply] in the event that the importation is not part of [a series of][two or more]importations that [ are carried out or are planned to be carried out][ could be considered to have been made or planned] for the purpose of evading compliance [with the certificate of origin requirements. ]][ with Articles 1.1, 1.A, and 1.2]
 

[The importing Party may establish cases in which it will not require a certificate of origin, based on its domestic legislation.]
 

[1.1.7 Recognition and acceptance of the [certificate of provenance].]

[Without prejudice to previous provisions, the Parties shall establish a [certificate of provenance] for the purpose of identifying those goods which have been re-exported from a duty-free area of one of the Parties to the territory of[the other][another]Party as goods originating from a third country, provided that the following is observed: 
 

- the goods have remained under Customs supervision by the re-exporting Party; 
 

- the goods do not undergo a subsequent transformation or any other operation, except their commercialization, unloading, reloading, or whatever other operation is deemed necessary for the adequate maintenance of those goods; and 
 

- the foregoing is established by the appropriate documents.]
 

[Each party shall require re-exporters located in their duty-free zone to complete and sign a certificate of provenance, which must be approved by the competent authorities.
 

By means of its competent authorities, each party may require that importers within their territory who import goods from the duty-free zone must present the corresponding certificate of provenance and certificate {of origin} for goods which qualify as originating goods under this agreement, and for which tariff preference is requested.]
 

[For purposes of enforcement of this item (1.1.7), the parties shall establish through their duty-free zones a mechanism for administration and control of such goods.]
 

[1.1.8 Each Party may require that a "certificate of origin" for a good imported into its territory be completed by the exporter or be translated by the importer into an official language of the Party into whose territory the goods are being imported.]
 

[1.1.9 Notwithstanding article 1.1.1, an importer may make a claim for tariff benefits under this agreement on the basis of his own knowledge. under such circumstances no certification of origin is necessary.]
 

[1.1.10 Iin those cases where a claim for preference is based on a certification of origin, the importer is required to have in its possession a copy of the certification, but will not be required to produce it except in specific instances when requested by the responsible authorities].
 

1.2 Obligations relating to importations 
 

1.2.1 [[Each Party shall require][An][A party may require that an] importer who applies for preferential tariff treatment shall:[ for a good imported into its territory from the territory of another Party to]
 

a) declare [ in writing ][ in the import document ][ required by its law, based on a valid certificate of origin,] that the good qualifies as originating; 
 

b) [where the claim is based on {a} certification from another person,] have [the certificate of origin]["certificate of origin"][certification] in its possession at the time the declaration referred to in sub-paragraph (a) is made; [except in those circumstances where such certification is not required.]
 

c) provide [a copy] of [the certificate of origin][the "certificate of origin"][ the certification] when its customs authority so requests; [and]
 

[d) submit without delay, a corrected import document and pay the corresponding customs duties when the importer has reason to believe that [the certificate of origin]["certificate of origin"][ the certification] on which its import declaration is based contains inaccurate information. When the importer[voluntarily]complies with the above obligations, it shall not be penalized; and]
 

[e) prove to the customs authority that the requirements for [re-exportation] direct shipment, transit and transshipment established in Article ___ of the [Chapter] on [Rules of][the] Origin [Regime] have been met, when appropriate.] ]
 

[1.2.2 [If][each Party shall provide that, when] an importer [ in its territory] fails to meet any of the requirements established in this [Chapter]{or}[to the extent applicable, any of the provisions in [Chapter] ___ (National Treatment and Market Access) or [Chapter] ___ (Rules of Origin),] the preferential tariff treatment being requested [ for the good imported from the territory of another Party] [shall][may]be denied.]
 

[1.2.3 An importer requesting preferential tariff treatment [on the basis of a certification by an exporter or producer] shall keep [the certificate of origin]["certificate of origin"][certification] and all documentation relative to the importation for a period of ____ [6][5] years, counted from the date of the importation.]
 

[1.2.4 [If][ Each Party shall provide that, when] preferential tariff treatment has not been requested [ for a good imported into its territory that would have qualified as an originating good,] [at time of importation], the importer may request that its customs authority return the excess customs duties paid as a result of such preferential tariff treatment having not been granted, within ___[4 years][1 year][180 days] from the date of the importation.][accrediting the origin of the goods and other requirements that may be established][, provided that sufficient evidence, as determined by the customs authority of a Party, has been provided.] [provided {[that it has the certificate of origin in its possession and]} that the request is accompanied by:
 

a) a written declaration, stating that the good did qualify as an originating good at the time of importation;
 

b) a copy of the valid certificate of origin [covering the imported goods, issued in accordance with the terms of Article 1.A; ]and, 
 

c) any such other documentation relating to the importation of the goods as that Party's customs authority may require.]
 

{[Each Party shall provide that, where an importer had not requested preferential tariff treatment for a good imported into its territory that would have qualified as an originating good, the importer of the good may, no later than one year after the date on which the good was imported, apply for a refund of any excess duties paid as the result of the good not having been accorded preferential tariff treatment, provided the importer has the certificate of origin in his/her power and includes with the request:
 

a) a written declaration that the good qualified as an originating good at the time of importation; 
 

b) a copy of the certificate of origin; and 
 

c) such other documentation relating to the importation of the good as that Party may require.]}
 

[Each Party shall adopt the customs procedures for importation clearance under preferential conditions.]
 

[The importing Party shall accord to goods imported from another Party the tariff treatment applicable to those goods under this Agreement where the importer presents a certificate of origin relating to those goods, and that certificate is prima facie considered acceptable by the Customs Authorities of the importing Party].
 

[Where the Customs Authorities of the importing Party for any reason do not consider the certificate of origin presented by the importer to be adequate or accurate, the Customs Authorities of the importing Party may not interrupt the import procedures of the goods to which the certificate relates. However, the Customs Authorities of the importing Party may adopt any action necessary to safeguard the fiscal interests of the importing Party, in addition to requesting the appropriate information from the authorised body in the exporting Party.]
 

[1.3 Obligations relating to exportations.]
 

[1.3.1 [Each Party shall stipulate that its][The] exporter [or producer], [who has filled out and signed a certificate [or declaration ] of origin] [ and has presented a request in accordance with paragraph 1.A.6 of Article 1.A, on the basis of which a certificate of origin was issued,], [shall deliver a copy of the certificate [or declaration] of origin to its[competent ]{customs} authority]{customs administration} [ the customs authority of the importing country ] when the latter so requests.]]
 

1.3.2 [Each Party shall stipulate that its][The] exporter [or producer][who [has filled out and signed a certificate or declaration of origin and]]{[has presented a request in accordance with paragraph 1.A.6 of Article 1.A and]} that has reason to believe that said certificate [or declaration]{of origin} contains incorrect information must act without delay to notify in writing all persons to whom [he][the exporter of producer] may have delivered [the certificate [or declaration] of origin, [as the case may be,] as well as [the competent authority][its customs administration] of any change that could affect the accuracy or validity of the certificate [or declaration] of origin [or of the request submitted to the certifying authority that issued the certificate of origin, so that, if deemed necessary, a corrected certificate of origin may be issued; once issued it shall be delivered without delay. Should the declaration of origin contain incorrect information, he shall deliver without delay a corrected version to all persons to whom it was presented, as well as to the customs authority ]. In these cases, the exporter or producer can not be penalized for having submitted an incorrect [certificate][request][or declaration] [ respectively]]. 
 

[1.3.3 The [competent authority][customs administration] of the exporting Party shall communicate in writing to the[competent authority][customs administration] of the importing Party regarding the notification referred to in paragraph 1.3.2.][Likewise, when the customs administration of the importing Party learns of the usage of false certificates of origin, prompt notice shall be given to the customs administration of the exporting Party.]

[1.3.4 Each Party shall stipulate that the delivery of a false certificate or declaration of origin by an exporter or producer, or any false documents presented by the exporter or producer for the issuance of the corresponding certificate of origin, indicating that a good that is to be exported to the territory of another Party qualifies as an originating good, shall have the same legal consequences, with the appropriate modifications as required by the circumstances, as would apply to an importer in its territory who made false statements or representation in contravention of its customs laws and regulations. In addition, it may apply such measures as warranted by the circumstances, when the exporter or producer fails to comply with any of the requirements of this Chapter].
 

1.4 Record keeping requirements 
 

1.4.1 [Each Party shall stipulate that: 
 

[ (a) An][The] exporter [or] producer [[or [certifying entity]] that issues][ that signs a declaration of origin or] a certificate shall maintain, for a [minimun] period of ____[6]{[5]} years from the date the certificate [or declaration of origin] was [issued ][signed]or [for such longer period as such Party may specify,] all records [referred to in paragraph 1.A.6, all records and documents related to the origin of the good] required to demonstrate the eligibility of a good for preferential tariff treatment, including records associated with: 
 

(i) the [purchase][acquisition] of, cost of, value of, and payment for, the good that is exported from its territory; 
 

(ii) the [purchase][acquisition]of, cost of, value of, and payment for, all materials, including indirect materials, used in the production of the good that is exported from its territory, and 
 

(iii) the production of the good in the form in which the good is exported from its territory.]
 

[a.1) in accordance with the verification process set forth in Article 3.1, the exporter or producer shall provide the customs authority of the importing Party with the records and documents referred to in paragraph 1.4.1(a). When the records and documents are not in the possession of the exporter or producer, he may ask the producer or supplier of the materials to furnish the records and documents so that, with the latter's authorization, he can deliver them to the customs authority conducting the verification;]
 

[[(b) An][1.4.2 The] importer claiming preferential tariff treatment for a good imported into the Party's territory shall maintain [and make available to the customs administration][ in that territory ], for a[minimum] period of ___ [6][5] years from the date of importation of the good [or for such longer period as such Party may specify, a copy of the certificate][the certificate of origin]["certificate of origin"][ the certification] and all other [documents required by the importing Party]{required documentation} relating to the importation of the good. ]
 

[An exporter or producer who has signed a declaration of origin shall maintain, for a period of five years, the accounting records, documents and other evidence to justify the information on the declaration, including the documents related to: (i), (ii) and (iii). In turn, the entities that have issued a certificate, shall maintain, for the same period of time, all the background data that served as a basis for issuing the certificate.]
 

[1.4.1. The competent government authorities of the Parties may examine the certificates of origin after entry for consumption or customs release of the good and, if relevant, apply the corresponding sanctions in accordance with their national legislation.
 

In this connection, the competent government authorities, the non-governmental agencies authorized to issue certificates of origin, and the exporters shall maintain in their files, for a period of no less than years, the copies and documents relating to the certificates issued.]
 

[Each Party shall require that exporters who complete certificates of origin maintain all the records and documents related to the origin of the goods for a period of .... years from the date of the certificate of origin and produce the records and documents as requested by the authorised body.]
 

[1.5 [Obligations of] certifying [authorities][entities]]
 

[Alternative 1]
 

[Certification of origin, when required, may be made only by the producer or exporter.]
 

[Alternative 2]
 

[1.5.1 Each Party shall [designate][authorize] one or more [certifying authorities][entities] to be responsible for issuing {[certificates of origin]["certificate of origin"][certification]} They may act under federal, national, state or departmental jurisdiction, [taking into consideration their representativeness, technical capacity and suitability for providing such service. [ An official body ][ The certifying authority ] established by each Party shall be responsible for monitoring the issuance of [the certificate of origin]["certificate of origin"][certification][ and shall coordinate all matters relating to the actions of the certifying authorities. ]]][or under the jurisdiction of any other political-administrative division that the Parties may have.]
 

[Each Party shall designate one or more authorised bodies which shall be responsible for issuing certificates of origin and for carrying out the related control.]
 

[1.5.2 The names of the certifying authorities, as well as the registry of the signatures of the officials accredited to issue [certificates of origin]["certificate of origin"][certification] shall be those that the Parties notify or have notified to the other Parties, whether for the registration process or for any change made to such registries.]
 

[The (agency responsible for administering the Agreement) shall maintain an up-to-date record of the certifying agencies authorized by each Party to issue certificates of origin. In addition, it will maintain a list of the names, signatures and seals of the officials authorized to sign the certificates of origin.]
 

[The list of certifying agencies of the Parties is contained in Annex of this [Chapter].]
 

[The Parties shall send to the (agency responsible for administering the Agreement), with sufficient advance notice, any changes to the list, indicating the dates as of which the officials are authorized or no longer authorized to issue certificates of origin. The (agency responsible for administering the Agreement) shall communicate these changes to the other Parties no later than calendar days after the date that the notification is received. Such changes shall become effective once they are received by the Parties. In addition, by .. of each year, the (agency responsible for administering the Agreement) shall consolidate the list and circulate it among the Parties.]
 

[1.5.3 The certifying authorities of each Party shall: 
 

a) number consecutively the certificates issued and file a copy during a minimum period of ___ years, as of the date of issue thereof. Such file shall also include all the records that serve as a basis for the issue of the certificate. 
 

b) maintain a permanent record of all the certificates of origin issued, which shall contain, at a minimum, the number of the certificate, the applicant and the date of its issue.]
 

[The competent government authorities in matters of origin shall have the following functions and obligations:
 

a) to verify, when necessary, the declarations of origin that have been presented;
 

b) to supervise the agencies authorized to issue certificates of origin;
 

c) to follow the procedures referred to in this Chapters; and
 

d) to provide the Parties and the (agency responsible for administering the Agreement) with information and cooperation in relation to the matters covered in this [Chapter].
 

The competent government authorities in matters of origin shall require that the agencies authorized to certify the origin of goods comply with the following obligations:
 

a) verify the reliability of the declarations of origin presented;
 

b) present reports on compliance with the provisions of this [Chapter]; and
 

c) provide the means necessary for supervising their actions.]
 

[The authorised bodies in the Parties, in carrying out the control provided for in this [Chapter], shall inter alia - 
 

a) check the accuracy of the declaration presented by the exporter; 
 

b) provide to the other Parties administrative co-operation required for the control of proof of origin.]
 
 
 

[1.6 Format[s] of [the certificate of origin]]["certificate of origin"][certification][and of the producer's declaration of origin]
 

[Once the Agreement has entered into force, the Parties [shall [prepare]][adopt][shall have prepared and entered into force] a single format for [the certificate of origin]["certificate of origin"][certification] [and a single format for the declaration of origin [of the producer],] which may be modified by [the (agency responsible for administering the Agreement), subject to] agreement [of the Parties].]
 

[The certification of origin is not to be limited to a prescribed format, but a party may require that it contain the following core set of data ( to be determined by the Parties as part of the negotiation).]
 

[ADMINISTRATION OF THE RULES OF ORIGIN] 
 

[2.1 Uniform and consistent interpretation and application] 
 

[2.1.1 For purposes of this [Chapter]: 
 

a) The Harmonized System [in force and effect as of the date of this Agreement] shall be the basis for the tariff classification in this [Chapter]
 

[b) The determination of whether a heading or subheading under the Harmonized System provides for and specifically describes both a good and its parts shall be made on the basis of the nomenclature of the heading or subheading [[or the][and the] General Rules of Interpretation, the Chapter Notes or the Section Notes of the Harmonized System] ]
 

c) [the principles of] the Customs Valuation Agreement [of the WTO] shall be used [as a basis] for determining the value of a good or a material. ]
 

[2.1.2 For purposes of this [Chapter], upon applying the Customs Valuation Agreement [of the WTO as a basis] for determining the origin of a good, it shall be considered that: 
 

a) the principles of the Customs Valuation Agreement shall apply to domestic transactions, with the changes required by the circumstances, as they would be applied to international transactions; and 
 

b) the provisions of this [Chapter] shall take precedence over those of the Customs Valuation Agreement[in the event they are incompatible]. 
 

[c) One Party may only accumulate origin with goods originating from countries to which this Agreement applies.]
 

[d) In cases where there is no specific common rule of origin with regard to a good for all the Parties, the rules of origin of this [Chapter] shall apply only between the exporting Party and the importing Party, considering the other Parties that do not have said specific common rule of origin as non-Party countries.]] 
 

[2.1.3 For purposes of this [Chapter], the Parties shall identify a core set of data elements required to certify the origin of goods.]
 

[2.2 Incorporationof modifications ] 
 

[The [Committee on Rules][Working Group] of [Origin and] Customs Procedures, which [shall be subordinate to the TNC and] shall be composed of a representative of the competent authority of each Party, is hereby established.][it shall meet at least once a year, or at the request of any of them.]
 

[The [Committee] Working Group on Rules of Origin, established by the Parties, shall present a report to theAdministrative Commission on the proposed modifications, which shall issue any rulings it may deem pertinent.]

[The Committee shall have, among others, the following functions: 
 

[- propose to the TNC amendments to this [Chapter] and to the [Chapter] on customs procedures, as required;]]
 

[a) endeavoring to agree on:
 

i) the interpretation, application, and administration of this Chapter;
 

ii) tariff classification and valuation matters relating to rulings to determine origin;
 

iii) modifications to the certificate or declaration of origin referred to in Article 1.1;
 

iv) any other matter referred to it by a Party; and,
 

b) examining proposals for customs-related administrative or operational modifications related to this section that could affect trade flows among the Parties]
 

[Any Party considering that this [Chapter] needs to be modified to include changes in productive processes or other issues, may submit the modification proposal to the other Parties, together with the supporting reasons and studies, for examination and adopting any corresponding measure according to this [Chapter].]
 

[No provision in this Chapter shall be construed to prevent a Party from issuing a ruling to determine origin or from taking such other action as it considers necessary because it is awaiting resolution of a matter placed before this Committee.]
 

[2.3 Competent authorities ]
 

[2.3.1 The competent authority of the FTAA on Administration of the Rules of Origin shall be a [Committee] [Working Group] that will be responsible for the application, interpretation, administration and modification of this Origin Regime]
 

[The authorised bodies provided for in this [Chapter] will, no later than thirty days after the entry into force of this Agreement, exchange through diplomatic channels the lists of the authorised bodies and the official stamps of the authorised bodies. Any changes to such listings shall enter into force thirty days after receipt of notification.]
 

[2.4 Advance rulings]
 

[ 2.4.1 The Parties agree that advance rulings on origin may be issued, at the request of an exporter from a third country, an importer or any person having a good reason to do so, in keeping with the legal requirements set forth in the national legislation of the respective countries.]
 

[ (18)[2.4.1 [Each Party shall stipulate that, through its][Through the][competent authority][customs administration], advance rulings [will][shall] be promptly issued, in writing, prior to the importation of a good into its territory. These advance rulings shall be issued by the [competent authority][customs administration] of the territory of the importing Party at the request of the importer in its territory, or of the exporter or producer in the territory of the other Party, on the basis of the facts and circumstances stated by same, and with regard to: 
 

a) whether the good qualifies as originating, in accordance with [this][Chapter][... ]
 

b) whether the non-originating materials used in the production of a good satisfy the corresponding change in tariff classification indicated in the annex of specific rules of the [Chapter] on Rules of Origin; 
 

[c) [whether the good satisfies the regional value content established [in this [Chapter]];]
 

d) whether the method applied by the exporter or producer in the territory of another Party, in accordance with the principles of the Customs Valuation Agreement to calculate the value of a good or of the materials used in the production of a good, for which the advance ruling is requested, is appropriate for determining whether the good satisfies the regional value content, in accordance with the [Chapter] on Rules of Origin;]
 

[e) whether a good that re-enters its territory after having been exported from its territory to the territory of another Party for the purposes of repair or alteration qualifies to receive duty-free treatment, in accordance with the article [ of the [Chapter]][on goods re-imported after being repaired or altered]; ]
 

[f) whether the marking of the country of origin made or proposed for a good meets the requirements established in the article on country of origin marking; and]
 

g) other issues agreed by the Parties.]
 

[2.4.2 Each Party shall adopt or maintain procedures for issuing advance rulings , to include: 

a) information reasonably required in order to process the request; 
 

b) the power of its [competent authority][customs administration]to at any time request additional information from the person requesting the advance ruling during the process of evaluating the request; 
 

c) the obligation of the [competent authority][customs administration] to issue the advance ruling once it has obtained all necessary information from the person [requesting it][{requesting} the advance ruling during the process of evaluating the request;]
 

d) the obligation of the [competent authority][customs administration] to issue the advance ruling in a complete, substantiated, and reasoned manner.]
 

[2.4.3 Each Party shall apply advance rulings to importations to its territory, as of the date of the issuance of the ruling, or as of a later date indicated therein, unless the advance ruling is amended or repealed, pursuant to the provisions of paragraph 2.4.5.]
 

[2.4.4 Each Party shall grant any person requesting an advance ruling the same treatment, interpretation, and application of the provisions of the chapters on Market Access and Rules of Origin as it has granted to any other person to whom it has issued an advance ruling, when the facts and circumstances are identical in all[essential][material] respects.]
 

[2.4.5 The advance ruling may be amended or repealed by the [competent authority][customs administration] in the following cases: 
 

a) when the advance ruling was based on some error: 
 

i) of fact, 
 

ii) in the tariff classification of the good or of the materials that are the object of the ruling, 
 

[iii) in the application of the regional value content, pursuant to the [Chapter] on Rules of Origin,] or 
 

[iv) in the application of the rules for determining whether a good which re-enters [its territory after having been exported from its territory to the territory of another Party] for repair or alteration qualifies to receive duty-free treatment, pursuant to [Chapter] ___ (National Treatment and Market Access) [or a modification with respect to the country of origin marking {or} of the [Chapter] (National Treatment and Market Access)]]; 
 

[b) when the ruling is not consistent with an interpretation that the Parties have agreed upon, with regard to[Chapter] ____ (National Treatment and Market Access) or an amendment regarding the country of origin marking or of [Chapter] ____ [(Rules of Origin)][(National Treatment and Market Access)]; 
 

[c) when there is a change in the circumstances or facts on which it was based; ]
 

[d) for the purpose of applying an amendment to [Chapter] ____ (National Treatment and Market Access), to [Chapter] ____ (Rules of Origin), to this [Chapter], or to the [Uniform Regulations]; or 
 

e) for the purpose of enforcing an administrative or judicial decision or adapting to a change in the legislation of the Party that has issued the advance ruling.]]
 

[2.4.6 Each Party shall stipulate that any amendment or repeal of an advance ruling takes effect on the date it is issued or on a later date established therein, and may not be applied to importations of a good made prior to these dates, unless the person to whom it has been issued has failed to act in accordance with its terms and conditions.][Nevertheless, if an importer requests {retroactive} application of an amendment or repeal of such a ruling, a Party may grant retroactive application.]
 

[2.4.6 The Party issuing an advance ruling may review an advance ruling to establish its continued validity.]
 

[2.4.7 Notwithstanding the provisions of paragraph 2.4.6, the Party issuing the advance ruling shall postpone the date of the entry into force of the amendment or repeal for a period not to exceed ___[90][30] days, when the person to whom the advance ruling has been issued has relied on it in good faith [and to his detriment]]
 

[2.4.8 Each Party shall stipulate that in examining the regional value content of a good for which an advance ruling has been issued, its [competent authority][customs administration] assesses whether: 
 

a) the exporter or producer is complying with the terms and conditions of the advance ruling; 
 

b) the operations of the exporter or of the producer are consistent with the essential facts on which that ruling is based; and
 

c) the substantiating data and calculations used in applying the criteria or the method for calculating the value are correct in all essential respects.]
 

[During importation of goods subject to an advanced ruling, the competent authority may assess whether or not the exporter or producer meets the terms and conditions thereof and specifically, whether the transaction is consonant with the material facts on which the resolution was based. When examining the regional value content, the competent authority must assess, most especially, whether the verifying data and calculations used in applying the criterion or the method followed in calculating the value are correct in all material aspects]
 

[2.4.9 [Each Party shall stipulate that, when its][When the][competent authority][customs administration] determines that any of the requirements established in the above paragraph have not been met, [the competent authority][customs administration][it] may amend or repeal the advance ruling, as circumstances warrant.]
 

[2.4.10 [Each Party shall stipulate that, when its][When the] [competent authority][customs administration] determines that the advance ruling is based on incorrect information, the person to whom it has been issued shall not be sanctioned if that person shows that he/she acted with reasonable care and in good faith in representing the facts and circumstances that gave rise to the advance ruling.]
 

[2.4.11 [Each Party shall stipulate that,] when an advance ruling is issued to a person who has falsely represented or omitted substantial circumstances or facts on the basis of which the advance ruling was issued, or who has not complied with the terms and conditions thereof, the [competent authority][customs administration]issuing the advance ruling may apply [the] measures[, including sanctions]established in its legislation.]
 

[2.4.12 [The Parties shall stipulate that] the possessor of an advance ruling may only use it while the facts {and }{or} circumstances on the basis of which it was issued continue to exist. In such case, the possessor of the ruling may present the necessary information so that the issuing authority may proceed, pursuant to the provisions of paragraph 5.]
 

[2.4.13 No advance ruling shall be issued for a good that is subject to a verification of origin procedure or to any review or challenge proceeding in the territory of any of the Parties]]
 

2.5 Review and appeal 
 

[[1.)][2.5.1] Each Party shall grant exporters or producers of another Party [substantially] the same rights of review and appeal of [origin determinations,][decisions with respect to origin] rulings [to determine origin][and advance rulings] provided for their importers.] [ that signs a certificate or declaration of origin covering a good that has been dealt with by a ruling to determine origin pursuant to paragraph 3.1.12 of Article 3.1.]
 

[[2.)][2.5.2] The rights referred to in paragraph 1 include access to at least one administrative process of review, independent of the official or entity responsible for the [ruling to determine] origin [ruling][or [the] advance ruling] subject to review, and access to a legal [or paralegal] review process of the ruling or of the decision made in the last instance of administrative review[, pursuant to the national legislation of each Party].]
 

[Each Party will establish procedures for the review of decisions by the authorised bodies and the customs authorities regarding the certification and verification of origin.]
 

[2.6 Regulations]
 

[2.6.1 [The Parties][The Administrative Commission] shall establish regulatory standards for interpretation, application, and administration [of [Chapter] (national treatment and market access for goods), of [Chapter] (rules of origin), and of this [Chapter]], which may be amended at any subsequent time. [Topics that would be regulated through regulatory standards are]: 
 

- Format and instructions for completing the certificate and declaration of origin. 
 

- Time period for providing a copy of [the certificate of origin]["certificate of origin"][certification] to the customs authority. 
 

- Timeliness in correcting an import document due to errors in [the certificate of origin]["certificate of origin"][certification]. 
 

- Time period for which the importer must keep [the certificate of origin]["certificate of origin"][certification] and any other documentation related to the importation.
 

- Requirements that the importer must fulfill in order to request the return of customs duties as a result of having [not] requested preferential tariff treatment [after importation]. 
 

- Time period during which the exporter must keep records and documents related to the origin of the good and manner in which these are kept. 
 

- Definition of series of importations, as regards the exceptions to the requirement for a {[certificate of origin]["certificate of origin"][certification]}
 

- Regulation of other means of verification of origin that may be agreed upon by the Parties (verification services). 
 

- Requirements for validity of notifications of means of verification. 
 

- General or specific verification questionnaire. 
 

- Time period for responding to the questionnaire. 
 

- Possibility that the exporter requests an extension for responding to the verification questionnaire. 
 

- Authorities and persons to whom notice must be given regarding the verification visit. 
 

- Communication between customs administrations to determine the authority that must be notified of the verification visit. 
 

- Contents of the notice of verification visit. 
 

- Amendments to the above notice. 
 

- Request to the importer for information on the origin of the good. 
 

- Time period for consenting to the visit. 
 

- Time period for requesting postponement of the verification visit. 
 

- Procedure for issuing advance rulings. 
 

- Powers of the customs authority to reject an advance ruling request due to a lack of sufficient information.]
 

[- Others as the Parties agree]
 

3. VERIFICATION [AND CONTROL] OF ORIGIN 

3.1 Procedures for verifying origin 
 

[3.1.1 The customs authority of the importing Party may not prevent customs clearance of the goods [in cases where there is][solely on the basis of] doubt as to the authenticity of the[certificate of origin] ["certificate of origin"][certification], presumption of non-compliance with the rules established in this [Chapter], nor when [the certificate of origin]["certificate of origin"][certification] is not presented, contains errors, or is incomplete. In such situations, a bond for the value of the duties applicable to third countries may be demanded, pursuant to the [internal] domestic legislation of the Parties.]
 

[If the information referred to in the preceding paragraph is insufficient to clarify doubts on the origin of the goods covered by a certificate of origin, the importing Party may decide to open an investigation, and shall notify the competent authority of the exporting State Party of that decision.]
 

[( (19)) [3.1.1 The importing Party may request information from the exporting Party as to the origin of a good.]
 

[ 3.1.1 - The Customs Authorities of the Parties may carry out verification of origin at random or when they have reasonable doubt as regards the authenticity of the certificate of origin or the accuracy of the information regarding the origin of the goods.]
 

3.1.2 [As part of {this}{an} investigation] In order to establish if a good imported from the territory of another Party that has preferential tariff treatment qualifies as originating, the importing Party may, through its [competent[customs] authority][customs administration], verify the origin of the good {[only]} by the following means: 
 

a) written questionnaires [and requests for information] sent to [importers] exporters or producers of the exporting Party; [or]
 

[a.1) requiring the certifying authority of the exporting Party to furnish the information needed to verify the authenticity of the certificate(s) of origin, the truthfulness of the information contained therein, or the origin of the goods. Should the information furnished by the exporting Party be insufficient to determine the origin of the merchandise, the importing Party shall be entitled to request that the other Party provide additional information;]
 

b) [verification] visits to the facilities of the exporter or producer in the territory of the exporting Party in order to examine the [productive processes] accounting records and the documents referred to in Article ___, [1.A.6 and 1.4 that demonstrate compliance with the rules of origin]and to [inspect][examine]the facilities and materials or products used in the production of the goods; [and] [ that are used in the production of the good and, when applicable, those used in the production of the materials];[or]
 

c) [[such][a request asking the competent authority of the exporting Party to perform certain operations or procedures for the purpose of verifying the origin of the goods; or]]
 

d) [other procedures agreed to by the Parties]
 

[Where a claim for preference is properly made, it may not be denied without first commencing the process of verifying the claim.]
 

[The verification procedure set forth in section c), paragraph 3.1.2. would only be used in the case of commercial operations worth US$50,000 (fifty thousand dollars of the United States of America) or more and in the event that the origin of the goods cannot be accurately determined using the method provided for in section a), paragraph 3.1.2.]
 

[In the event that the information requested under section c), paragraph 3.1.2 is not delivered in the term provided for or if the reply does not provide sufficient information to determine the origin of the goods, the competent authority of the importing Party may refuse preferential tariff treatement for the goods covered by the certificates involved in the verification procedure by means of a written resolution that includes the arguments of fact and law on which the resolution is based.]
 

[Once an investigation has been opened, the importing Parting shall adopt any measures it considers necessary to guarantee fiscal interest, but in no case shall it detain the importation procedures of the goods.]
 

[3.1.2 - The Parties, acting through their respective Customs Authorities and authorised bodies, shall assist each other in the conduct of verification.]
 

[3.1.A For the purposes of section (a.1) of paragraph 3.1.2, the customs authority of the importing Party shall indicate on the request the number and date of the certificates of origin for which verification is sought, together with the purpose and scope of the request.
 

3.1.B For the purposes of paragraph 3.1.A, the certifying authority of the exporting Party shall furnish the required information, in the terms set forth in section (a.1) of paragraph 3.1.2, within no more than one hundred and twenty (120) days following the date on which the corresponding request was received. 
 

3.1.C In the event that the information requested under section (a.1) of paragraph 3.1.2 is not delivered in the time stipulated in paragraph 3.1.B, or if the reply does not provide sufficient information to determine the authenticity or veracity of the certificate of origin or the origin of the goods, the competent authority of the importing Party may refuse preferential tariff treatment for the goods covered by the certificates involved in the verification procedure by means of a written resolution that includes the arguments of fact and law on which the resolution is based]
 

3.1.3 [The exporter or producer who receives a questionnaire under paragraph 3.1.2(a) shall respond to and return said questionnaire within [a period of [no more than]____[30] days from the date [received][notified]]. During this interval, the exporter or producer [may apply in [writing, [only once,]] to the importing Party requesting an extension, which can not [exceed ___ {[30]}days]]][exceed the term granted]. [, or such longer period as agreed to by the verifying Party.]
 

[3.1.3 - Where the Customs Authorities of the importing Party wish verification of origin to be carried out, those Customs Authorities shall communicate with the relevant authorised body in the exporting Party, setting out the substance of the enquiry. The authorised body in the exporting Party shall respond to this enquiry within . . . days, providing the information requested as fully as possible. Where the authorised body in the exporting Party considers it appropriate, it may invite the Customs Authorities of the importing Party to participate in the investigation.]
 

3.1.4. [If the exporter or producer does not return the [duly completed] questionnaire within the corresponding interval [or {its}extension,] the importing Party may deny preferential tariff treatment. ][ by means of a written resolution that includes the arguments of fact and law.]
 

[ 3.1.4 In all cases, any disputes between the importer and the Customs Authorities of the importing Party will be settled under the legislation of the importing Party.]
 

3.1.5 [Before making a verification visit in accordance with the provisions established in paragraph 3.1.2(b), the importing Party shall be required to notify in writing [at least 30 days in advance], through its [competent [customs] authority][customs administration], its intention to make the visit. [The notification shall be sent to the exporter or producer who is to be visited, the [competent [customs] authority][customs administration]of the Party in whose territory the visit will take place and, if the latter so requests, the embassy of this Party in the territory of the importing Party.] The [competent [customs] authority][customs administration]of the importing Party shall obtain the written consent of the exporter or producer to be visited. ]
 

[3.1.6 The notification referred to in paragraph 5 shall contain the following: 
 

a) the identification of the [competent [customs]authority][customs administration]making the notification; 
 

b) the name of the exporter or producer to be visited; 
 

c) the date and place of the proposed verification visit; 

d) the object and scope of the proposed verification visit, with specific mention of the good(s) that are the object of the verification; 
 

e) the names [ personal data] and titles of the officials who will make the verification visit; and 
 

f) the legal grounds for the verification visit.]
 

[3.1.D Any modification to the information referred to in sections (a), (c), and (e) of paragraph 3.1.6 shall be notified in writing to the exporter or producer and to the customs authority of the exporting Party prior to the verification visit. Any modification to the information referred to in sections (b), (d), and (f) of paragraph 3.1.6 shall be notified pursuant to the terms of paragraph 3.1.5.]
 

3.1.7 [ If during the ____[30][45][days following receipt of the notification of the proposed verification visit according to paragraph 3.1.5][term], the exporter or producer does not give his written consent for said visit, the importing Party may deny preferential tariff treatment to the good(s) that is the reason for the verification visit. ]
 

3.1.8 [[Each Party shall stipulate that] when the [exporter or producer][{the}{its} customs authority] receives a notification in accordance with paragraph 5, it may request, [within ___[15] days after the date the notification is received,][a one-time postponement] of the proposed verification visit, for a period not to exceed (60). days as of the date the notification is received, or for a longer period agreed to by the Parties. [For this purpose, the [competent authority][customs administration] of the importing Party and of the exporting Party must be notified as to the postponement of the visit.]]
 

3.1.9 [ A Party shall not deny preferential tariff treatment based solely on the request to postpone the verification visit, pursuant to the stipulations of paragraph 3.1.8. [or 3.1.9]]
 

[3.1.9 Each Party shall stipulate that when the customs administration receives a notification in accordance with paragraph 5, it may request, within 15 days after the date the notification is received, a delay in the proposed verification visit and provide the reasons therefore. For this purpose, the exporter or producer of the exporting Party must be notified as to the postponement of the visit.]
 

3.1.10[[Each Party shall allow] the exporter or producer whose good(s) are the object of a verification visit, [to][may] designate [up to]two observers who will be present during the visit, provided said observers intervene solely in that capacity. If no observers are designated by the exporter or producer, that omission shall not result in the postponement of the visit. ]
 

[3.1.11 [Each Party][The competent authority] shall verify compliance with the requirements of the regional value content, the de minimis calculation, or any other measure contained in the [Chapter] on Rules of Origin, [through its competent [customs] authority,] in accordance with generally accepted accounting principles which apply in the territory of the Party from which the good was exported.]
 

[3.1.11" Each Party shall, through its customs administration, when conducting a verification of origin to which Generally Accepted Accounting Principles or Generally Accepted Auditing Standards may be relevant, accept and make use of such principles as are applicable in the territory of the Party of the exporter or the producer, as the case may be.]
 

3.1.12 [[As part of the procedure to verify origin,][ After the verification has concluded] the [competent [customs] authority][customs administration] shall provide the exporter or producer whose good(s) have been the object of the verification visit with a [written ruling in which it is determined][determination as to] whether or not the good qualifies as originating; said ruling shall also include the findings of fact and the legal grounds of the determination.]
 

[Within a period of XX after the initiation of an origin verification procedure, the competent authority shall provide the exporter or producer whose good or goods are the subject of the origin verification with a written determination of whether the good qualifies as an originating good, including findings of fact and the legal basis for the determination. Nonetheless, the customs authority may extend said period for up to a period of XX, after notifying the producer or exporter of the good. A ruling on the determination of origin issued outside the aforementioned period or its extension shall have no effect.]
 

[If the ruling mentioned in the preceding paragraph is not satisfactory, the exporting Party may appeal to the dispute settlement system of the Agreement.]
 

[If one of the Parties believes that another Party is carrying out importations from third Parties in which there are doubts regarding conformity with the present Rules of Origin, it may request, through the Administrative Commission, that consultations be held to ascertain the real production conditions of such goods, so that the Party requesting the consultation may evaluate the advisability of asking that an investigation be opened on the originating nature of the good(s) against the third Party.]
 

[In the case of the preceding paragraph, the Party consulted shall provide appropriate consideration and respond within XX days, at the latest. The consultations shall be carried out in a place agreed to by the Parties and both their proceedings and their conclusions shall be reported to the Commission.]
 

[The Administrative Commission shall keep an updated record of the rulings adopted by the Parties on the determination of origin.]
 

3.1.13 [ When the verification conducted by a Party indicates that an exporter or producer has certified or declared more than once and in a false or unfounded manner, that a good qualifies as originating, the importing Party may suspend preferential tariff treatment for identical goods that said person exports or produces until the person proves that the good complies with the stipulations of the [Chapter] on Rules of Origin.]
 

3.1.14 [ [Each Party shall stipulate that when its][When the][competent [customs]authority][customs administration] determines [ by means of a resolution] that a good imported into its territory does not qualify as originating in accordance with the tariff classification, or with the value applied by the Party to one or more of the materials used in the production of the good, and this differs from the tariff classification or value applied to the materials by the Party from whose territory the good was exported, the ruling of the importing Party shall not take effect until both the importer of the good and [the person][ exporter or producer] who [filled out and] signed [the certificate of origin]["certificate of origin"][certification][or declaration][covering that good] have been notified in writing.]
 

[3.1.15 The Party shall not apply the ruling issued in accordance with paragraph 14 to an importation made prior to the date on which the ruling enters into force, provided that:
 

a) the [competent [customs]authority][customs administration] from whose territory the good has been exported has issued an [advance ruling in accordance with Article ___ , or any other] ruling concerning the tariff classification or value of the materials, [or has given consistent treatment to the entry of the materials under the tariff classification or value at issue,]on which one could rely; [ in accordance with its laws and regulations ]and 
 

b) the aforementioned rulings {[described in section (a)]} are issued prior to the notification of the initiation of the verification of origin]]
 

[3.1.16 If a Party denies preferential tariff treatment to a good pursuant to a determination made under paragraph 12,{[3.1.14]} it shall postpone the effective date of the denial for a period not exceeding 90 days where the importer of the good, or the person who completed and signed the {certificate of} origin {declaration} for the good, demonstrates that it has relied in good faith to its detriment on the tariff classification or value applied to such materials by the customs administration of the Party from whose territory the good was exported.]
 

[A Party shall not apply such a determination of origin arising from a verification to an importation made before the effective date of A the determination, provided that the importer has demonstrated that prior to making the claims at issue it has relied upon either:]
 

[a ruling on the tariff classification or on the eligibility for tariff preference of such materials by the customs administration of the Party into whose territory the material was imported.]
 

[the consistent treatment of the material at issue in terms of classification or valuation, as demonstrated by importations of the material into that territory]. 
 

[When a Party denies preferential tariff treatment to a good pursuant to a determination of origin arising from a verification, the denial will go into effect no sooner than 30 days after the date of the determination or notice that the issue is under review, provided that the importer of the good, or the person who executed the certification for the good, demonstrates that it has relied in good faith on the tariff classification or customs value applied to such materials by the Party from whose territory the good was exported.]
 

{[3.1.16 When a Party denies preferential tariff treatment to a good pursuant to a resolution made under paragraph 3.1.14, said Party shall postpone the effective date of the denial for a period not exceeding ninety (90) days, provided that the importer of the good or the exporter or producer who signed the certificate or declaration of origin for that good demonstrates that he relied in good faith, to his detriment, on the tariff classification or value applied to such materials by the customs administration of the Party from whose territory the good was exported]}

[3.1.X The customs authority of the importing Party may not impede customs clearance of goods when there is doubt as to the authenticity of the certificate, presumption of noncompliance with the provisions of this [Chapter], or when the certificate of origin has not been not presented, contains errors, or is incomplete. Under such circumstances, a bond for the value of the duties applicable to third parties may be required, pursuant to the national legislation of the Parties.]
 

[3.1.X When a certificate of origin is not presented, the customs authorities of the importing Party shall provide a 15 calendar-day period, as of the date of entry for consumption or customs release of the good, for due presentation of the document. After that period, the bond will be collected or the corresponding levies charged.]
 

[With the exception of cases where a certificate of origin is not presented, bonds that are set shall have an initial maximum duration of forty (40) calendar days as of the date of entry for consumption or customs release of the good, which may be extended for another forty (40) calendar days if, during the first bond period, compliance with the provisions of this [Chapter] is not established.]
 

[3.1X Customs authorities shall notify the exporting Party and the (agency responsible for administering the Agreement) that a bond has been set within three (3) working days of the adoption of the measure, and shall include antecedents, developments or the justifications for same.]
 

[Once the measure has been communicated in accordance with the above, it shall be incumbent on the exporting Party to clarify the situation to the customs authorities of the importing Party and, if necessary, to furnish proof demonstrating compliance with the rules of origin. If no clarification or demonstration is made regarding the measure adopted within thirty (30) {calendar} days of the adoption of the measure, or if such action has not led to a solution of the problem, any of the Parties involved may request the intervention of the (agency responsible for administering the Agreement), providing it with all the information it has at its disposal.]
 

[The (agency responsible for administering the Agreement) shall issue its ruling on compliance or lack of compliance with the provisions of this [Chapter] within thirty (30) calendar days of receiving the request.]
 

[If, as a consequence of this procedure, the situation that gave rise to the setting of bond is resolved, the bond shall be lifted.]
 

[If it is established that the certificate of origin is not authentic, or if the good does not qualify as originating, the importing Party may collect the bond.]
 

3.2 Confidentiality 
 

[3.2.1 Each Party, pursuant to its national legislation, shall maintain the confidentiality of such information that it has obtained in accordance with this [Chapter] and shall protect it from all types of dissemination.][that could prejudice the competitive position of those providing the information][that could prejudice the person providing the information]
 

[3.2.2 The confidential information obtained in accordance with this [Chapter] may only be made known to the authorities responsible for the administration and [application of the [rulings to determine][determination of] origin [ and of customs or fiscal matters, as applicable]][origin determinations or].]
 

[[3.2. Each Party shall maintain, in accordance with its laws and regulations, the confidentiality of business information collected pursuant to this [Chapter] the release of which could prejudice the competitive position of the persons providing the information. Examples of such information may include but are not limited to: 
 

a) the terms of sale or contracts relating to importations, including information with respect to transaction prices; 
 

b) internal costs and prices, including manufacturing costs; 
 

c) manufacturing processes; and 
 

d) profit margins.]
 

[Nothing in these articles shall preclude the parties from sharing information between governments that would enhance the enforcement of the obligations of this [Chapter]. The confidential business information collected pursuant to this [Chapter] may only be disclosed to those authorities responsible for the administration and enforcement of determinations of origin, and of customs and revenue matters.]]
 

3.3 Cooperation 
 

[3.3.1 The Parties are to cooperate and consult as deemed necessary for the effective and standard application [and interpretation]of administrative or operational provisions on matters relating to this [Chapter], and may have common understandings related with the interpretation and application of the provisions of this [Chapter]. The consulted Party shall give prompt and full consideration to any inquiries received.]
 

[3.3.1 Creation of an Assistance Fund for the Verification of Origin of {developing}{small} economies. The funding shall be obtained by ___% of unpaid {import} tariffs by the more developed countries to the smaller economies.]
 

[[3.3.1 As feasible, each Party shall notify the others of the following measures, rulings, or determinations, including those in the process of being applied. ]
 

[a) a determination of origin ruling issued as the result of a verification of origin visit made pursuant to Article ___, once the review and challenge rights referred to in Article ___ have been exhausted. ]
 

[b) a determination of origin ruling that a Party considers contrary to a ruling issued by the competent authority of another Party regarding tariff classification or the value of a good, or of materials used in the processing of a good, or the reasonable allocation of costs when calculating the net cost of a good for which a determination of origin has been made; ]
 

[c) a measure that establishes or significantly modifies an administrative policy that could affect future determination of origin rulings; and ]
 

d) an advance ruling or its amendment, pursuant to Article ___...]
 

[Each Party shall ensure that its laws and regulations implementing this [Chapter] are [promptly] published and made [available on the Internet]. Each Party shall ensure that advance rulings, amendments of advance rulings, or repeals of advance rulings interpreting or implementing this [Chapter] are promptly published and made [available on the Internet]. When such published rulings or their modifications are redacted in order to protect confidential business information, Parties shall make the complete determination available to competent authorities from other Administrations upon request. [With regard to other other determinations interpreting or implementing this[Chapter] (including verification procedures) each Party shall, as is practicable, make them available to competent authorities of other Parties].]
 

[3.3.2 Customs authorities shall cooperate:
 

a) to the extent possible, in the application of their respective customs regulations and laws for the enforcement of this{Agreement }{Treaty}, as well as any customs or mutual assistance agreement or other customs agreement to which they are a Party, and on statistical matters, harmonizing of documents, and exchange of customs information;]
 

[The Parties shall cooperate:
 

a) in the enforcement of their respective customs-related laws or regulations for implementing this{Agreement}{Treaty}, and any customs mutual assistance agreements or other customs-related agreement to which they are party; 
 

b) for purposes of facilitating the flow of trade between their territories, in such customs-related matters as the collection and exchange of statistics regarding the importation and exportation of goods, the harmonization of documentation used in trade, the standardization of data elements, the acceptance of an international data syntax and the exchange of information;
 

b) in the exchange of customs-related regulations;
 

c) in the verification of origin of a good, to which end the customs authority of the importing Party may request the customs authority of the other Party to conduct in its territory certain investigations for that purpose, sending the respective report to the customs authority of the importing Party; and
 

d) in the joint organization of training programs on customs-related topics, to include training of officials and users that participate directly in customs procedures.]
 

4. SANCTIONS
 

[4.4.1 Each Party shall establish or maintain criminal, civil or administrative penalties for violations [of][under] its laws and regulations as related to the provisions of this [Chapter].]
 

[Each Party shall stipulate that a false certification or declaration of origin [made by its exporter or producer], to the effect that a good to be exported to the territory of the other Party qualifies as originating, shall have the same legal consequences, with any changes required by the circumstances, as those that would be applied to its own importer making false declarations or representations in contravention of its customs regulations and laws. [It may also apply such measures as the circumstances warrant when the exporter or producer fails to meet any of the requirements in this [Chapter].]]
 

[4.4.1 When it has been established that a certificate of origin is not authentic or that the good does not qualify as originating, the exporting and/or importing Parties shall apply the measures and/or sanctions that correspond under their national legislation.]
 

[Without prejudice to the above, the exporting Party shall suspend the granting of [ certificate of origin]["certificate of origin"][certification] to the final producer or exporter for a term of ____ [6] months. In case of repeated offense, said suspension shall be for a term of ____ [18] months.]

[The entities authorized by each Party to issue [the certificate of origin]["certificate of origin"][certification] shall share responsibility with the producer or exporter, in regard to the authenticity of the information given in the good's declaration of origin.]

[The competent government [authorities][authority]of each Party shall disqualify officials of [non-governmental][the] certifying [entities] [entity][agency] who have issued certificates of origin in an improper manner. If, within a period of one year, [the][any] corresponding non-governmental certifying entity repeats such improprieties, it shall be suspended permanently from issuing certificates of origin. ]

[When governmental certifying entities are involved, the Parties[Party] shall adopt measures and [/or]sanctions provided by their [its] domestic legislation.]
 

[The Parties shall maintain legislation providing for penalties against persons who, in the respective Parties, furnish or cause to be furnished any document which is untrue in a material particular in support of a claim for preferential treatment under this Agreement
 

[4.4.2. No provision set forth in Articles 1.2.1(d), 1.2.2, 1.3.2, and 3.1.9 shall be construed so as to prevent a Party from applying measures as warranted by the circumstances.]

[ 5. TECHNICAL COOPERATION ]
 

[5.1 Each Party, at the request of another Party, may {facilitate the provision of}{provide} technical {advisory services }{advice}, information, and assistance in order to train its officials, with a view to the acquisition of technical skills and the implementation of technologies to provide improved compliance and monitoring of processes for certification of origin. ]
 

[5.2 Customs authorities shall cooperate, to the extent possible, in the application [and interpretation] of their respective customs regulations and laws for the enforcement of this Agreement, as well as any mutual assistance customs agreement or other customs agreement to which they are a Party, and on statistical matters, harmonizing of documents, and exchange of customs information, as well as on other issues that the customs authorities may determine.]
 

[5.3 To the extent possible, the customs authorities of the Parties shall provide notice of the following measures, rulings, or determinations, including those that are in the process of being approved: 
 

a) a ruling on determination of origin issued as a result of a procedure to verify origin carried out pursuant to Article ___, once the review and challenge procedures referred to in Article ____ have been exhausted; 
 

b) a ruling on determination of origin that the Party considers to be contrary to a ruling issued by the customs authority of the other Party regarding tariff classification or the value of a good or of materials used in the production of a good, 
 

c) a measure that establishes or significantly amends an administrative policy and that could affect future rulings on determination of origin; [and]
 

d) an advance ruling or its amendment, pursuant to Article ____. ]
 

[6.1 INSTITUTIONAL ARRANGEMENTS]
 

[6.1 DEFINITIONS.]
 

[6.1.1. For the purposes of this Chapter, the following terms shall have the meanings indicated:
 

customs authority: the authority that, under the domestic law of each Party, is responsible for the

administration of customs laws and regulations; 
 

certifying authority: the government authority that, under the domestic law of each Party, is responsible for issuing, verifying, and controlling certificates of origin;
 

identical goods: goods that are the same in all respects, including physical characteristics, quality, and commercial reputation. Minor differences in appearance shall not prevent goods that in all other ways fit this definition from being considered identical;
 

CIF: inclusive of cost, insurance, and freight;
 

exporter: an exporter located in the territory of a Party from which the good is exported who, pursuant to this Chapter, is obliged to maintain, in the territory of that Party, the records referred to in Article 1.4.1(a);
 

importer: an importer located in the territory of a Party into which the good is imported who, pursuant to this Chapter, is obliged to maintain, in the territory of that Party, the records referred to in Article 1.4.1(a); 
 

producer: in addition to the stipulations of the RO Chapter (Rules of Origin), the person who is obliged to maintain, in the territory of that Party, the records referred to in Article 1.4.1(a);
 

ruling to determine origin: a resolution issued as a result of a verification of origin that establishes whether a good qualifies as originating, in accordance with the RO Chapter (Rules of Origin);
 

preferential tariff treatment: the application of the duty rate applicable to an originating good, in accordance with the Tariff Elimination Program.
 

[6.1.2. Except for terms defined in this Article, the definitions set forth in Article 10 (Definitions) and the provisions of Article 9.1 (Enforcement Instruments) of the Chapter on Rules of Origin are incorporated into this Chapter.]
 

[Annex 1 to Article 1.1]
 

[The Parties establish the following common form for the "certificate of origin," which may be modified if so agreed on by the Parties.
 

(Pending definition) ]
 

[Annex 2 to Article 1.1]
 

[The Parties establish the following {standard} form for the "declaration of origin," to be filled out and signed by the producer of the good when he is not the exporter thereof. This declaration form may be modified if so agreed on by the Parties.
 

(Pending definition)]
 

[CHAPTER ON] STANDARDS AND TECHNICAL BARRIERS TO TRADE (20)
 

Article 1. Scope and Coverage
 

Area of Application
 

1.1 The provisions of this [Chapter] apply to standards [-related][measures] [activities], [[of the Parties, in other words: standards, technical regulations, conformity assessment] [authorization] procedures and metrology] [,accreditation][[technical regulations, conformity assessment procedures,] metrology [measures] [activities][(scientific, industrial and legal)] of the Parties,] as well as to measures related to these that could directly or indirectly affect trade in goods [or services] between the Parties. 
 

[1.2 The provisions of this [Chapter][shall] apply to goods of all sectors [and services], as regards the preparation, adoption and application of [[standards, technical regulations, conformity assessment procedures,] [accreditation] and metrology][standards-related measures].]
 

1.3 The provisions of this [Chapter] do not apply to [services, nor to] sanitary and phytosanitary measures.
 

[1.4 Procurement specifications established by government institutions for the production or consumption needs of government institutions [shall][are] not [be] subject to the provisions of this [Chapter], but rather [will be][are] governed by the [Chapter] on Government Procurement.]
 

Extent of Obligations
 

1.5 Each Party shall ensure the adoption of all measures necessary for conformity with the provisions of this[Chapter] at the national or federal[,state, and [municipal levels],][and any other level of political division that the Parties may have][level and shall make efforts to have these measures adopted at the other levels of government][except in cases in which this [Chapter] provides otherwise]. 
 

[1.6 The activities referred to in Article 1.1 may be implemented at different levels: national, subregional, regional, and international.]
 

[1.7 The activities referred to in Article 1.1 [shall be][are] carried out by [various types of bodies, such as:] standardization bodies, certification bodies, testing and calibration laboratories, [metrology verification laboratories, national] metrology laboratories, inspection bodies, accreditation bodies, and regulatory organs. These entities may be organized at the national[,][or] subregional [or regional][, regional and international] level[s].]
 

[1.8 The conclusion of this [Chapter] will be promoted through general and specific agreements, memoranda of understanding, [recognition agreements] and regional, subregional and bilateral articulation and cooperation initiatives as well as other bilateral and multilateral agreements [signed] in the various fields being considered and related to the activities described in Article 1.1. [These instruments include mechanisms such as the recognition of the equivalence of technical regulations, [and recognition of conformity assessment procedures, particularly] acceptance of calibration, [measurement,] testing and inspection reports [and certificates], acceptance of certificates of inspection of conformity, recognition of [accreditation and] certification systems and acceptance of suppliers' declaration of conformity.]]
 

[Article 2.Objectives and General Principles]
 

[2 X1 The objective of this [Chapter] is to promote a strengthening and full application of national standard-related, conformity assessment, accreditation and metrology systems, for the advancement of the Free Trade Zone in the Hemisphere.]

WTO Agreement on Technical Barriers to Trade (TBT)[and Other International Agreements]
 

[2X2 The Parties recognize the rights and obligations contained in the World Trade Organization Agreement on Technical Barriers to Trade (hereinafter the WTO TBT Agreement), and agree to abide by the principles of transparency, most-favored-nation treatment, non-discrimination and differential treatment established therein.]
 

[2.1 Parties reaffirm their existing rights and obligations arising from the WTO Agreement on Technical Barriers to Trade [and other international agreements in which the Parties participate, including agreements about health, the environment and conservation, and consumer protection.]]
 

[2.2 Each Party shall make every possible effort to implement and fully conform to the provisions agreed upon in the TBT Agreement, the provisions of which constitute the basis of this [Chapter].][This [Chapter] shall contribute to the complete implementation of the WTO Agreement on Technical Barriers to Trade in the region.]
 

[Relationship with International Technical Fora][and Participation in International Fora] (21)
 

[2.3 This [Chapter] shall contribute to the complete implementation of the WTO Agreement on Technical Barriers to Trade in the region.][To comply with the [present] Agreement, the Parties shall make efforts to harmonize, whenever possible, the activities referred to in 1.1, as well as the guidelines and practices established by related international technical fora.]
 

[Right to take Standards-Related Measures]
 

[2.4 Each Party may {develop,} adopt, apply and maintain any standards-related measure [technical regulations, conformity assessment procedures][authorization] and metrology [procedures] that [allow][guarantee] the achievement of legitimate objectives[, such as the protection of human, animal or plant life or health; protection of the environment; or prevention of practices that may mislead or deceive the consumer as well as measures that ensure that such standards-related measures are applied and implemented].]
 

[Right to Establish Level of Protection]
 

[2.5 Each Party may prepare, adopt, apply and maintain [the standards-related] measures that allow them to ensure the level of protection deemed appropriate to achieve its legitimate objectives of security, protecting human, animal and plant life and health, protecting the environment {and}{or} preventing [deceptive] practices [that might mislead or deceive consumers].]
 

[Nondiscrimination]
 

[2.6 The Parties shall ensure, with respect to [standards-related] measures [[standardization], approval procedures, and metrology], [the activities mentioned in 1.1,][that] goods [and service providers] from other Parties [shall] receive treatment no less favourable than that given to like [products][goods] of domestic origin and to [like products][suppliers of like services][originating in][of] any other country.]
 

[Unnecessary [Technical] Barriers to Trade](22)
 

[2.7 The Parties shall ensure that the application of their standardization [standards -related] measures, [technical regulations and conformity assessment procedures][authorization procedures and metrology] shall not create unnecessary barriers to trade among them. {Each Party shall ensure that its standards-related measures do not}{ To this end, the Parties shall not} restrict trade more than necessary to achieve a legitimate objective, [taking account of the risks nonfulfillment would create].]
 

[2X3 The objective of this [Chapter] is to prevent the standards, technical regulations, conformity assessment procedures, {accreditation} and metrology measures prepared, adopted and applied from becoming unnecessary technical barriers to trade in the hemisphere.]
 

[2X4 The Parties reaffirm their commitment to undertaking an ongoing process of identification and elimination of unnecessary technical barriers to hemispheric trade resulting from the application of standards-related, accreditation and metrology measures.]
 

[Performance Rather than Design]
 

[2X5 The Parties shall ensure that standards-related measures based on product requirements are defined by the Parties on the basis of performance rather than on design, materials or descriptive characteristics.]
 

[Use of International Standards] (23) [and Participation in International Fora] (24)
 

[2.8 Parties shall utilize existing international standards in force, or those whose {completion}{adoption} is imminent, [the guidelines or recommendations of international institutions] or pertinent elements of these, [as a basis] for [the preparation and application of] their [respective] standards [-related], [authorization procedures][[accreditation] and metrology measures] except in cases where [international][such] standards [or recommendations] would be an inappropriate or ineffective means to fulfill the legitimate objectives being sought.]
 

[2.9 [In pursuing their legitimate objectives, each Party may adopt, maintain or apply any standards-related measure resulting in a higher level of protection than that obtained from an international standard,] due to[, among others,] fundamental climatic, geographical, technological, infrastructural factors or for scientifically proven reasons.]
 

[2X6 In order to ensure that international standards are used as a reference for the adoption of national standards-related, accreditation and metrology measures, the Parties shall urge the competent agencies in their territory to participate fully and appropriately in the respective international organizations.]
 

[Equivalence]
 

[2.10 {Each Party shall give favourable consideration to accepting a technical regulation adopted by another Party as equivalent to its own when, in cooperation with the other, they are satisfied that these technical regulations fulfill the legitimate objectives of their own regulations}.{The Partiers shall give favorable consideration to granting equivalence to technical regulations of other Parties meeting the objectives of the importing country.}] (25)
 

[Identification of Technical Barriers to Trade]
 

[2.11 The Parties [reaffirm their commitment to the ongoing identification and elimination of][undertake to periodically identify and eliminate] unnecessary technical barriers to hemispheric trade [resulting from the application of standards, technical regulations, conformity assessment procedures, [accreditation] and metrology].]
 

[2.12 [In order to identify technical barriers to trade,] The Parties [shall make efforts to adopt][shall adopt] compatible methodologies for identifying, [reporting and eliminating unnecessary technical] barriers that affect[their exports as a means towards finding concrete measures to overcome these barriers][hemispheric trade].] (26)
 

[2.13 These methodologies shall include international classification [and{, to the extent possible,} harmonization] of products and procedures [{to the extent}{insofar as} possible].]
 

[2.14 Parties shall encourage their exporters to collaborate in identifying technical barriers to their exports.]
 

[2.15 [Each Party][The Parties] shall [make efforts to] set up [and][implement] information systems including data on [unnecessary] technical barriers that have been identified and measures that have been taken to[overcome][eliminate] them.] (27)
 

[2.16 Efforts shall be made to ensure that the information systems {be}{and data banks used for the identification of technical barriers to trade are} designed in such a way that countries can use them as broadly, openly and transparently as possible, in order to fully conform to the commitments undertaken in this [Chapter].]
 

[Article 3. Standards]
 

[3X1 The objective of international standardization activities developed by consensus in international standardization bodies is considered to be the establishment of technical standards that reflect the state of the art in applied knowledge, aimed at better organization of production and trade systems.]
 

[3X2 The Parties shall support the strengthening of standardization activities and structure at the national, subregional and regional levels.]
 

[Conformance with the Code of Good Practice]
 

[3.1 The Parties shall ensure that their [government] institutions concerned with standards-related activities accept and conform to the Code of Good Practice for the Preparation, Adoption, and Application of Standards established in Annex [3][III] of the [WTO Agreement on Technical Barriers to Trade][WTO TBT Agreement.][; and shall take reasonable measures at their disposal so local, state or federal public institutions and non-governmental institutions involved in standards-related activities in their territories do the same.]]
 

[3.2 Parties shall also take [reasonable] measures at their disposal to ensure that local [{nongovernmental} state or federal]{public institutions}{government agencies} and nongovernmental {institutions}{organizations} involved in standards-related activities in their territories accept and conform to the Code of Good Practice.]
 

[Unnecessary Barriers to Trade]
 

[3.3 Parties shall prepare, adopt and apply standards for goods or related process and production methods, [or for services] or related operating methods that do not affect or create unnecessary barriers to trade.]
 

[Use of International Standards] (28)
 

[3.4 {Where relevant international standards exist or their completion is imminent, Parties shall make every possible effort to ensure that their standardization bodies use these international standards or, when international standards do not exist, regional or sub-regional standards or relevant parts of them as a basis for the standards they prepare, except when geographical, climate or other unique characteristics would cause such standards to be an inappropriate or ineffective means of fulfilling legitimate objectives.}{The Parties shall use international standards in effect or whose adoption is imminent, or relevant elements thereof, as the basis for their own standardization measures, except in cases where such standards represent an ineffective or inappropriate means of achieving their legitimate objectives}.]
 

[3.5 In the food area, preference shall be given to the official standards of the Codex Alimentarius as the basis for preparing national standards.]
 

[3.6 Parties shall encourage, to the extent possible, the adoption of international standards. In the absence of existing international standards, regional or subregional standards shall be used.]
 

[3.7 Parties shall seek to align their standards with relevant international standards. Parties shall urge the standardizing bodies in their territories to participate fully {and appropriately,} within the limits of their resources, in international standardizing bodies that carry out activities related to standards {previously adopted or pending adoption}.]
 

[Participation in International Standardization Fora] (29)
 

[3.8 {Parties shall make efforts, in keeping with their abilities, to increase their participation in regional and international standardization fora. [In coordinating their positions on standards to present to international bodies, Parties are encouraged to make use of the hemispheric standards body, the Pan American Standards Commission (COPANT).]}{The Parties shall endeavor to step up their effective participation in international standard-setting forums [. This coordination shall make,] [as well as coordinate,] where necessary, use of the Pan American Standards Commission (COPANT), a regional standardizing body.}] (30)
 

[3.9 Parties shall take reasonable measures at their disposal to ensure that the international standardizing bodies of which they or the competent institutions in their territories are members or participants have an established process designed to take account of the opinions of all of the interested Parties and to reconcile opposing arguments.]
 

[Coordination of Positions in International Fora]
 

[3.10 Parties shall seek to coordinate [their][the] positions [they will take] in international standardizing fora.]
 

[3.11 {In coordinating their positions on standards to present to international bodies,} Parties [are encouraged to][should, whenever necessary] make use of the hemispheric standards body, the Pan American Standards Commission (COPANT). {[This][As part of this coordination effort] where necessary, [they] shall make use of the Pan American Standards Commission, a regional standardizing body.]}
 

[3.12 Parties shall encourage the cooperation [and coordination] of the region's standardization bodies at the regional, subregional and national levels with bodies from other regions.]
 

[3X3 Hemispheric efforts in the area of standardization shall be coordinated by the Pan American Standards Commission (COPANT), in which the Parties agree to participate actively. COPANT shall establish a procedure for taking into account the views of all the Parties in order to propose them to international organizations.] (31)
 

[Performance Rather than Design]
 

[3.13 Parties shall ensure that, wherever appropriate, standards based on product requirements {based on performance}{are framed by standardizing bodies in terms of product performance} rather than on design or descriptive characteristics.]
 

[Equivalence]
 

[3.14 Only in the absence of relevant international standards, Parties shall give favourable consideration to the possibility of accepting as equivalent standards of other Parties, even when they differ from their own, provided they are satisfied that those standards adequately fulfil the objectives of their own standards.]
 

[Reporting on Preparation of Standards][Standardization Programs]
 

[3.15 The Parties shall [ensure that][encourage] the standardizing bodies [in their territories][to] report at least every six months on their work program, including report on standards they are in the process of preparing and standards that have been adopted in the last period. A standard shall be understood to be in the process of being prepared as of the time the decision to prepare it is made until it has been adopted.]
 

[Article 4. Technical Regulations]
 

[Unnecessary Barriers to Trade]
 

[4.1 The Parties shall ensure that their technical regulations are not prepared, adopted or applied with a view to or with the effect of creating unnecessary barriers to international trade. For this purpose, technical regulations shall not be more trade- restrictive than necessary to fulfil a legitimate objective, taking account of the risks non-fulfilment would create.]
 

[Use of International Standards] (32)
 

[4.2 Where relevant international standards exist or their completion is imminent, Parties shall use as these international standards or, when international standards do not exist, regional or sub-regional standards or relevant parts of them as a basis for their technical regulations, {except when geographical, climate or other unique characteristics would cause such standards to be an inappropriate or ineffective means of fulfilling legitimate objectives}{except in cases of unique geographical, climatic or other factors, as established in the WTO Agreement on Technical Barriers to Trade}.]
 

[4.3 Parties shall play a full part, within the limits of their resources, in the preparation of international standards for products for which technical regulations have been adopted or are expected to be adopted.]
 

[4.4 The Parties shall ensure that their technical regulations are aligned with relevant international standards.]
 

[Compatibility and] [Equivalence] (33)(34)
 

[4.5 Without detracting from the rights conferred to them in this [Chapter][,][and while taking into account international standards-related [and metrology] activities] to the greatest extent possible, Parties shall make their respective [standards-related [and metrology] measures][technical regulations] compatible, without lessening standards regarding safety or protecting human, animal or plant life or health, environmental issues or consumer protection.]
 

[4.6 The Parties shall give favourable consideration to the possibility of accepting equivalent technical regulations of other Parties, even if these regulations differ from their own, provided they are satisfied that these regulations appropriately fulfil the objectives of their own regulations.]
 

[4.7 Each Party shall accept a technical regulation adopted by another Party as equivalent to its own when the exporting Party, in cooperation with the other, demonstrates to [the satisfaction of] the importing Party that its technical regulations fulfil the others' legitimate objectives.]
 

[4.8 At the request of [a[n][the] exporting] Party, the [importing][other] Party shall inform in writing the reasons for not accepting as equivalent a [technical] regulation [of the exporting Party. [It][They] may, in addition, hold discussions to facilitate [such][its] acceptance].]
 

[4X1 The Parties shall make efforts to prepare and adopt common criteria for the region in reference to the equivalence of technical regulations[, in conformity with item 4.3].]
 

[Performance Rather than Design]
 

[4.9 [{Whenever}{Where} appropriate]{The} Parties shall ensure that, {wherever appropriate,} technical regulations based on product requirements {based on performance}{are framed by the Parties in terms of product performance} rather than on design or descriptive characteristics.]
 

[Regulatory Structures]
 

[4.10 In order to establish technical regulations[,] according to the nature of [the activity][activities] being regulated[,][the] Parties [{shall endeavor to][}shall foster the articulation of regulatory structures and mechanisms] [promote the establishment and functioning of regulatory structures at the national levels].]
 

[Structure and][Updating][Maintenance] [of Technical Regulations]
 

[4X2 Technical regulations should specify the products to which they apply, classified by tariff sub-item of the Harmonized System for the Designation and Codification of Goods, identifying mandatory requirements, conformity assessment procedures; the agencies responsible, authorized or accredited to conduct said assessment; national authorities responsible for compliance; risks they intend to counteract and how the regulation achieves it.]
 

[4.11 Technical regulations shall not be maintained if the circumstances or objectives that led to their adoption no longer exist or if changed circumstances or objectives could be served in a less trade-restrictive manner.]
 

[4X3 The right to raise an objection to a technical regulation may not be prescribed or annulled by administrative actions; therefore, administrative silence or other similar actions shall not be included in efforts to resolve disputes.]
 

[Risk Assessment ] (35)

[4.12 In seeking its legitimate objectives, each Party [shall conduct][may carry out] risk assessments. [In doing so, a Party may take into account, among other product-related factors][In doing so, it shall take into consideration]:
 

[a) {risk assessment procedures}{risk assessments} carried out by international [standardizing] bodies;]
 

[b) available scientific or technical information;]
 

[c) related production technology;]
 

[d) the intended end uses;]
 

[e) related production processes or methods, provided that they affect the characteristics of the goods;]
 

[f) operating, inspection, sampling or testing methods;]
 

[g) environmental conditions.]]
 

[4.13 Once the Party has established a level of protection appropriate towards achieving its legitimate objectives, while conducting the risk assessment, the Party shall avoid arbitrary or unjustifiable distinctions between similar products [or services], if these distinctions:
 

[a) result in arbitrary or unjustifiable discrimination against goods [or service providers] of another Party;]
 

[b) constitute a hidden restriction on trade between the Parties;]
 

[c) discriminate between similar goods [or services] for the same use under the same conditions that pose the same level of risk and provide similar results.]]
 

[4.14 A Party shall, upon request, provide to the other Parties, the relevant documentation regarding its risk assessment procedures as well as the factors considered in carrying out the assessment {[and establishing the levels of protection it considers appropriate [, in accordance with Article 2] }{[and establishing protection levels, in accordance with Article 2]}.]]
 

[Article 5. Conformity Assessment]
 

[5X1 The purpose of the conformity assessment activities shall be to verify and demonstrate the conformity of products, processes, systems and other results of productive activities to specific technical requirements. The Parties shall endeavor to ensure the consistency and transparency of conformity assessment activities, as a means of avoiding unnecessary barriers to trade in this [Chapter]'s field of application.]
 

[Nondiscrimination and Avoidance of Unnecessary Barriers to Trade]
 

[5.1 Parties shall ensure that, in cases where [a positive][an] assurance of conformity with technical regulations [or standards] is required, their{central government}{domestic} bodies apply the following provisions to products originating in the territories of other Parties.]
 

[5.1.1 Conformity assessment procedures are prepared, adopted and applied so as to grant access for suppliers of like products originating in the territories of other Parties under conditions no less favourable than those accorded to suppliers of like products of national origin or originating in any other country, in a comparable situation; access entails suppliers' rights to an assessment of conformity under the rules of the procedure, including, when foreseen by this procedure, the possibility to have conformity assessment activities undertaken at the site of facilities and to receive the mark of the system.]
 

[5.1.2 Conformity assessment procedures are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to international trade. [This means, inter alia, that conformity assessment procedures shall not be more strict or applied more strictly than is necessary to give the importing Party adequate confidence that products conform with the applicable technical regulations or standards, taking account of the risks nonconformity would create.]] 
 

[5.2 Each Party shall make an effort to ensure consistency and transparency in conformity assessment activities as a means of preventing unnecessary barriers to trade.]
 

[5.3 Recognizing that it should be to the mutual advantage of the Parties concerned, each Party shall accredit,[approve, {licence}][authorize] or otherwise recognize conformity assessment bodies in the territory of another Party on terms no less favourable than those accorded to conformity assessment bodies in its territory.]
 

[Use of International Guides and Recommendations]
 

[5.4 When relevant [guidelines][guides, guidelines, documents] or recommendations from international institutions involved in standards-related activities exist or where their completion is imminent, the Parties shall ensure that central government bodies utilize those [guidelines]{guides, guidelines, documents} or recommendations or relevant parts thereof, as a basis for their conformity assessment procedures, except when, as duly explained upon request, such [guidelines][guides, [guidelines, documents]] or recommendations or relevant parts are inappropriate for the Parties concerned for, inter alia, such reasons as national security requirements, the prevention of deceptive practices, protection of human health or safety, animal or plant life or health, or the environment; {fundamental climatic or other geographical factors; [fundamental] technological or infrastructural problems}{climatic or other basic geographical or [basic] infrastructure-related factors or technological problems}.]
 

[5.5 The Parties shall make efforts to assure that the [mechanisms][procedures] used in accreditation[, as well as in other [legal and de facto administrative][authorization] procedures,][be][are] consistent with international provisions accepted in corresponding technical fora.]
 

[5.6 The Parties shall, to the extent possible, adopt the ISO/IEC Guidelines and standards for conformity assessment procedures.]
 

[5X2 For purposes of this [Chapter], the following fields of conformity assessment shall be taken into account: a) obligatory conformity assessment; b) voluntary conformity assessment.]
 

[Obligatory Conformity Assessment]
 

[5X3 The Parties shall, to the extent possible, adopt the ISO/IEC guidelines and standards for obligatory conformity assessment procedures.]
 

[Voluntary Conformity Assessment]
 

[5.X4 The Parties shall encourage the adoption of ISO/IEC guidelines and standards for voluntary conformity assessment.]
 

[Conformity Assessment Procedures]
 

[5X5 In relation to its conformity assessment procedures, each Party shall be obligated to :
 

[a) not adopt or maintain conformity assessment procedures that are more strict or are applied more strictly than necessary to be certain that the good [or service] conforms to the technical regulations or applicable standards, taking into account the risks that failure to conform could pose;]
 

[b) initiate and complement this procedure in the most expeditious manner possible; and]
 

[c) establish a nondiscriminatory system for processing applications.] ]
 

[Participation in International Fora] (36)
 

[5.7 With a view to harmonizing their conformity assessment procedures on as wide a basis as possible, Parties shall play a full part, within the limits of their resources, in the preparation by appropriate international standardizing institutions of guides or recommendations for conformity assessment procedures.]
 

[5.8 These efforts may be carried out in collaboration with the hemispheric accreditations body, the Inter-American Accreditation Cooperation (IAAC) may be requested.]
 

[5.9 The Parties shall carry out actions necessary for the creation and strengthening of domestic conformity assessment systems based on the recommendations of specialized hemispheric organizations, such as the Inter-American Accreditation Cooperation (IAAC), the Pan-American Standards Commission (COPANT) and the Inter-American Metrology System (SIM), as well as specialized international organizations, such as the International Standards Organization (ISO) and other fora for accrediting entities, among them the International Accreditation Forum (IAF) and the International Laboratory Accreditation Conference (ILAC), in order to make viable the mutual/multilateral recognition of conformity assessment systems.] (37)
 

[5X6 The Parties shall inform the (agency responsible for administering this [Chapter]) of the institutions responsible for accreditation in their respective countries. They shall also communicate the list of public and private institutions authorized to issue conformity certificates, inspection reports and laboratory test reports, as well as of other institutions making up their conformity assessment systems. The Parties shall also report on any changes in said lists.]
 

[5X7 The Parties agree to strengthen their conformity assessment systems and structures and to foster the participation of their official accreditation agencies in the Inter-American Accreditation Cooperation (IAAC).]
 

[5X8 The Parties agree to participate in the definition and adoption of recommendations and to formulate and promote Mutual/Multilateral Recognition Agreements under the Inter-American Accreditation Cooperation (IAAC) and at the international level, for the purpose of the recognition of the results of conformity assessment procedures.]
 

[5X9 The Parties shall promote accreditation in the sectors that conduct the greatest volume of trade in the hemisphere.]
 

[5X10 The Parties shall fully participate, within the limits of their resources, in the preparation by international competent institutions with standardization activities of guidelines or recommendations referring to conformity assessment procedures.]

[5X11 The collaboration of related hemispheric organizations may be requested to coordinate common positions at international fora.]
 

[[Equivalence and]Mutual Recognition Agreements]
 

[5.10 The Parties shall ensure, whenever possible, that results of conformity assessment procedures in other Parties are accepted, even when those procedures differ from their own, provided they are satisfied that these procedures offer an assurance of conformity with relevant technical regulations [or standards] equivalent to their own procedures. [Prior to accepting the results of conformity assessment procedures in accordance with the provisions of the foregoing paragraph, and in order to strengthen the continuing reliability of the results of the conformity assessment procedures of each party, the parties may consult on matters such as the technical capacity of the conformity assessment bodies in question, including verification of compliance with relevant international standards by means of methods such as accreditation.] At the request of the exporting Party, the importing Party shall explain in writing the reasons for not accepting the results of the conformity assessment procedures. [Consultations may be held in order to arrive at a mutually satisfactory understanding regarding, in particular:]
 

[5.10.1 adequate and enduring technical competence of the relevant conformity assessment bodies in the exporting Party, so that confidence in the continued reliability of their conformity assessment results can exist; in this regard, verified compliance, for instance through accreditations, with relevant guides or recommendations issued by international standardizing bodies shall be taken into account as an indication of adequate technical competence;]
 

[5.10.2 limitation of the acceptance of conformity assessment results to those produced by designated bodies in the exporting Party.]]
 

[5.11 The Parties are encouraged, at the request of other Parties, to be willing to enter into negotiations for the mutual recognition of the results of each others' conformity assessment procedures. Parties may require that such agreements fulfill the criteria of Article 5.1[0], and give mutual satisfaction regarding their potential for facilitating trade in the products concerned. If an importing Party refuses to engage in or conclude negotiations designed to reach agreements for mutual recognition of the results of their respective conformity assessment procedures, it shall explain in writing to whoever so requests its reasons for doing so. [It][They] may, in addition, hold consultations to this end.]
 

[5.12 Each Party shall favourably consider, at another Party's request, entering into negotiations for the mutual recognition of the results of each others' conformity assessment procedures.]
 

[5.13 Parties shall support cooperation among testing laboratories, [certification][Certifying] bodies [, Accreditation bodies] and inspection bodies {[designed to promote mutual acceptance of the results of their operations][in order to foster mutual acceptance of their conformity assessments and ensuing results]}.]
 

[5.14 Parties are encouraged to permit participation of conformity assessment institutions located in the territory of other Parties in their conformity assessment procedures under conditions no less favourable than those accorded to bodies located in their own territories or that of any country. If an importing Party refuses to authorize the conformity assessment institutions of another Party to participate in its conformity assessment procedures, it shall explain in writing to whomever so requests the reasons for its objections. It may, in addition, hold consultations to this end. If the reasons are due to restrictions in the laws of the importing country, it shall make all necessary efforts to adapt its laws accordingly.]
 

[5.15 Parties are encouraged to accept, when possible, suppliers' declaration of conformity.]
 

[Conformity Assessment Procedures]
 

[5.16 With regard to their conformity assessment procedures, each Party shall be under the following obligations:
 

[a) not to adopt or maintain stricter conformity assessment procedures or apply them more strictly than necessary, to create confidence that a good [or a service] conforms to the technical regulation or applicable standard, taking account of the risks non-conformity would create;]
 

[b) to initiate and complete the procedure as expeditiously as possible;]

[c) to establish a non-discriminatory order [for the processing of the application];]
 

[d) to publish the process and the normal duration of each of these procedures or, upon request, inform the applicant of said information;]
 

[e) to grant national treatment to originating goods [and services] of the other Party and no less favourable treatment than that granted to its own like goods [and services] or those of any other country;]
 

[f) to ensure that the competent national body [or authority]
 

i. on receipt of an application, promptly examines the completeness of the documentation and informs the applicant in a precise and complete manner of any deficiency, being the responsibility of the applicant to correct any deficiencies in the corresponding period;
 

ii. transmits to the applicant as soon as possible the results of the conformity assessment procedure in a precise and complete manner so that the applicant may take any necessary corrective action;
 

iii. when the application is deficient, proceed as far as practicable if the applicant so requests, and
 

iv. informs the applicant, upon request, of the status of the application and the reasons for any delay;]
 

[g) to limit the information the applicant is required to submit to that necessary to assess the conformity and to determine the appropriate cost of the assessment;]
 

[h) to accord confidential or proprietary information arising from, or supplied in connection with, the conduct of the procedure {for a good of another Party [or for a service] provided by a person of another Party}{with respect to a good [or service] of the other Party.}
 

i. the same treatment as that accorded to the information related to a good [or service] of the Party and
 

ii. treatment that protects the [legitimate] commercial interests of the applicant;]
 

[i) to ensure that any fees that are charged for assessing the conformity of a good [or service] that is exported from another Party, are equitable in relation to any fees chargeable for assessing the conformity of an identical or like good [or service] of the Party, taking into account communication, transportation and other costs;]
 

[j) to ensure that the location of facilities at which a conformity assessment procedure and the selection of samples do not cause unnecessary inconvenience to applicants {of}{or} their agents;]
 

[k) whenever necessary and possible, to ensure that the procedure is carried out at the premises where the good is produced [and that a mark of conformity is granted, if warranted];]
 

[l) to limit the conformity assessment procedure to that necessary to determine that a good [or service] that has been subsequently modified still meets the [applicable]technical regulations or standards, provided that prior to its modification the good [or service] met the pertinent requirements established by that technical regulations or standard;]
 

[m) to limit any requirement regarding samples of a good to that which is reasonable, and ensure that the selection and collection of samples does not cause unnecessary inconvenience to an applicant or its agent;]
 

[n) the size of the sample shall be determined by [international guides or recommendations] [standards];]
 

[o) there shall be a procedure for examining complaints regarding the application of a conformity assessment procedure and corrective measures shall be adopted when such a complaint is justified.]]
 

[5X12 In carrying out conformity assessment procedures, the parties may make use of the technical capacity and infrastructure of accredited bodies established in the territory of the other parties.]
 

[Authorization Procedures] (38)
 

[5X13 With regard to their authorization procedures, each party shall apply Article 5.16, except for lines (j), (k), and (l), replacing all references to "conformity assessment procedures" with the phrase "authorized procedures".]
 

[5.17 With regard to their authorization procedures, each Party {shall be under the following obligations}{shall provide the following assurances}:
 

[a) not to adopt or maintain approval procedures that are stricter, nor apply the procedure more strictly than necessary {to give it confidence that a good [or a service] conforms with an applicable technical regulation or standard,} taking into account the risks that non-conformity would create;]
 

[b) to initiate and complete the procedure as expeditiously as possible and not be discriminatory;]
 

[c) to notify the applicant, upon request, the approximate duration of the procedure;]
 

[d) to ensure that the competent body
 

i. on receipt of an application, promptly examines the completeness of the documentation and informs the applicant in a precise and complete manner {of any deficiency, holding the applicant responsible for remedying such deficiencies within the proper time frame};
 

ii. transmits to the applicant as soon as possible the results of the procedure in a form that is precise and complete so that the applicant may take any necessary corrective action;
 

iii. where the application is deficient, proceeds as far as practicable with the procedure where the applicant so requests, and
 

iv. informs the applicant, on request, of the status of the application and the reasons for any delay;]
 

[e) limit the information the applicant is required to supply to that necessary to conduct the procedure and to determine appropriate fees;]
 

[f) accord confidential or proprietary information arising from, or supplied in connection with, the conduct of the procedure {for a good of another Party [or for a service provided by a person of another Party]}{with respect to a good [or service] of the other Party}.
 

i. the same treatment {as that for a good of the Party [or a service provided by a person of the Party] and }{ as accorded to information with respect to a good [or service] of the Party, and;}
 

ii. {in any event, treatment that protects an applicant's legitimate commercial interests to the extent provided under the Party's law }{treatment protecting the applicant's commercial interests}; ]

[g) ensure that any fee it imposes for conducting the procedure {is no higher for a good of another Party[or a service provider of another party] than is equitable in relation to any such fee imposed for its like goods [or service] providers of any other country,}{is consistent with the fee collected for the procedure for a similar or identical good [or service] of the Party,} taking into account communication, transportation and other related costs;]
 

[h) limit any requirement regarding samples of a good to that which is reasonable, {and ensure that the selection of samples does not unnecessary inconvenience to an applicant or its agent.}]]
 

Article 6. Metrology
 

[6.1 Activities in metrology shall be guided by the Metric Convention, the use of the International System of Units (SI), and by the provisions of agreements reached in the context of the [International [Bureau][Conference] of Weights and Measures], [(BIPM/IBWM)], [CIPM/ICWM] and of the International Organization of Legal Metrology[(OIML/IOLM)], securing the organization of measurement systems according to a traceability structure at the international level.]
 

[6X1 The Parties undertake to adopt the International System of Units (IS). In this regard, they shall establish time frames and develop the instruments and strategies necessary for adjusting national structures to the technological change that should result from the adoption of said System.]
 

[6.2 For activities related to legal metrology, Parties shall adopt the [guidelines][recommendations and documents] of the [International Organization of Legal Metrology] (OIML/IOLM).]
 

[6.3 The Parties undertake to protect, preserve and communicate their national patterns and measurement instruments, maintaining their traceability, based on international patterns.]
 

[Use of International Patterns]
 

[6.4 The Parties shall, insofar as possible, [make][guarantee the traceability of] their metrology standards[compatible, based on international standards][in accordance with the recommendations of the International Bureau of Weights and Measures (BIPM/IBWM) and the OIML/IOLM].]
 

[6.5 Parties shall support cooperation {among}{by} their national metrology laboratories, {by calibration laboratories} and {among}{by} bodies making up the [legal] metrology networks in order to establish a technical foundation for establishing the provisions of this [Chapter].]
 

[6.6 Parties shall carry out efforts to support the participation of their national metrology laboratories in relevant technical fora at the subregional, regional and international levels.]
 

[6.7 Parties shall, through their national Metrology laboratories, support the activities conducted by the Inter American Metrology System (SIM), through its subregional networks.]

[6.8 Parties shall explore opportunities to share the infrastructure of metrology laboratories[, when appropriate,] as a way of taking optimal advantage of installed capacity and minimize the investments required to organize these activities.]
 

[6.9 Parties shall [ensure][promote the establishment of][seek to establish, insofar as possible] common procedures for [[establishing][approving] measurement models and methods for the] metrological [verification of pre-measured product in order][control], to facilitate trade in the region.]
 

Article 7. Transparency Requirements and Information Systems
 

[Notifications]
 

[7.1 Parties shall provide access to [all] the [other] Parties to this [Agreement with information on [the activities of standardization, technical regulations, conformity assessment procedures][standards-related, accreditation and metrology measures], particularly those that influence trade between [the countries][the Parties].] (39)
 

[7.2 The Parties, through their designated authorities, shall report to the Committee on Technical Barriers to Trade{referred to in Article 10} notifications it makes to the WTO, giving special emphasis to Articles 2.9, 2.10, 5.6 and 5.7 of the TBT Agreement. These notifications shall be made according to the formats established in the WTO TBT Agreement.]
 

[7.3 Each Party shall notify the other Parties about the standards-related and metrology measures which it intends to establish, before they come into effect.]
 

[7X1 The Parties shall notify the other Parties, through the (agency responsible for administering this [Chapter]), of any draft standardization, accreditation and metrology measures they intend to adopt as mandatory, no less than 90 days prior to the adoption of said measures.]
 

[7.4 {In the cases where an international standard does not exist, or where the technical content of a proposed technical regulation is not in accordance with the technical content of relevant international standards, and if the technical regulation may have a significant effect on the trade of other Parties}{In cases where a relevant international standard does not exist, or where the technical content of a technical regulation or conformity assessment procedure for a proposed technical regulation is inconsistent with the technical content of relevant international standards, and where such technical regulation could have a significant effect on trade by the Parties,} each Party shall notify the others in writing as to the proposed measure at least sixty (60) days before the measure is adopted so that interested parties may present and formulate observations and conduct consultations to be taken into account by the notifying Party [These notifications shall be made according to the formats established in the WTO TBT Agreement].]
 

[7.5 {The Party shall deliver}{In proposing the adoption or modification of a standardization or metrology-related measure, each Party shall deliver} a copy of the measure proposed to the other Parties or any other interested person, upon request, and when possible shall identify the provisions that differ substantially from the relevant international standards.]
 

[7.6 Once the [measure][technical regulation] has been adopted, the Party shall deliver a copy to the other Parties through their enquiry points.]
 

[7.7 Each Party shall notify the others when a [standards-related measure][technical regulation] is no longer valid.]
 

[7.8{The Parties shall notify the Committee on Technical Barriers to Trade of its efforts to update its technical regulations [and shall immediately forward data to the inquiry point of the other Party in the formats}{Each Party shall give the other Parties annual written notice of its standardization plans and programs and shall promptly forward such notices to the other Party's enquiry point [in the formats} established under the WTO TBT Agreement].]

[7X2 Once a standards-related, accreditation or metrology measure has been adopted as a mandatory measure by a Party, that Party shall provide a copy to the (agency responsible for administering this [Chapter]). It shall also report when such measures become obsolete. (The agency responsible for administering this[Chapter]) shall make this information available to the other Parties.]
 

[7.9 {Each Party shall give annual written notification to the other Parties about their standards-related plans and programs. }{The Parties shall notify the Committee on Technical Barriers to Trade as to their updating procedures}.]
 

[7.10 If a Party encounters or is threatened with urgent problems of safety, health or environmental protection or national security , it may omit giving prior notification of the draft technical regulation [, {provided that upon adoption of same it provides notification to the other Parties}]. [{Once the measure is adopted, the Party must}{provided that, upon its adoption, [it meets the following requirements}: (a) immediately notify the other Parties of the technical regulations and products involved, with a brief indication of the objective and rationale of the technical regulations, including the nature of the urgent problems; (b) upon request, provide the objective and rationale behind the technical regulation as well as the nature of the urgent problems.][{it gives notice to the other Parties]}]
 

[7.11 When a Party rejects a shipment [or service provision] through administrative channels, due to noncompliance with a standards-related or metrology measure, it shall give written notification without delay, to the owner of the shipment [or the service provider] as to the technical justification of the refusal.]
 

[7.12 The designated authorities shall inform the Committee of their main export products about which they are particularly interested in keeping informed, as regards standards-related measures that could affect these products. The Committee shall only notify the Parties regarding standards-related measures affecting the above-mentioned products.]
 

[7.13 The Parties, with the participation of the relevant hemispheric entities, commit to [collaborating in the development of and] maintaining the [Hemispheric Information System][hemispheric information systems] on[standards, technical regulations, conformity assessment procedures][standards-related], [accreditation] and metrology [measures] in a manner that serves the interests of hemispheric trade.]
 

[7X3 Within thirty (30) days after this agreement enters into force, each Party shall notify the other FTAA Parties of the entity it has designated to carry out the notifications required under this Article.]
 

[Enquiry Points] (40)
 

[7.14 Each Party shall ensure that there [is a][are] designated [authority][bodies] capable of responding to all reasonable requests for information from other Parties and from interested parties of the other Parties {and [expedite][making available] relevant documents on its [standards-related measures][activities related to standards, technical regulations, conformity assessment procedures and metrology]}{and providing relevant documents on their standardization[measures][activities][,technical regulations, conformity assessment procedures and metrology.]}]
 

[7.X4 Each Party shall ensure that there is at least one enquiry point in its territory capable of responding to all reasonable questions and requests from other Parties and from interested parties, as well as providing relevant and up-to-date documents on any measures relating to standards, metrology patterns or conformity assessment procedures adopted or proposed within its territory by government agencies and nongovernmental organizations.]
 

[7.15 This enquiry point shall also provide up-to-date documentation required regarding any standards-related measure, metrology patterns or conformity assessment procedures adopted or proposed in their territory by governmental or nongovernmental bodies.]
 

[7.16 Each Party shall inform the other FTAA Parties about [its appointed enquiry point within at most thirty (30) days of signing this agreement][the entity it has appointed as its enquiry point in its territory, and the scope of its activities which shall include responding to all reasonable requests and questions from another Party or interested person, as well as for supplying pertinent, updated documentation concerning any standards-related or metrology measure, or authorization procedures adopted or proposed within its territory by government or nongovernmental bodies].]
 

[7.17 Parties shall make efforts to develop and improve their information systems and enquiry points concerned with the activities of standards, technical regulations, conformity assessment procedures [and][,] metrology [and authorization procedures].]
 

[7X5 The Parties agree to take steps to support the creation, development and strengthening of National Centers for purposes of notification, consultation and distribution of information, in accordance with the requirements of the WTO TBT Agreement.]
 

[7.18 When a Party establishes more than one enquiry point, it shall [inform][communicate with] the other Parties as to each center's scope of responsibilities and shall ensure that any application sent to the incorrect information center be immediately forwarded to the correct enquiry point.]
 

[7.19 When an enquiry point [requests][receives requests for] copies of [documents][technical regulations][these shall be provided free of charge.][the] [I][i]nterested [[P][p]arties][persons][shall be provided with these at the same prices as nationals][may receive them at the same cost as a national] plus the cost of postage].]
 

Article 8. Technical Cooperation and Assistance
 

[8.1 [In order to ensure better compliance with this [Chapter]] The Parties agree that there is a strong need for structured action in the field of cooperation and technical assistance{[, to establish mutual confidence among all of the countries of the region on technical matters and to facilitate trade,]} based, as a point of departure, on the different levels of development in the standardization, [conformity assessment,] accreditation, certification, testing and metrology institutions in each of the Parties [, through concrete programs to meet their needs and establish ties of technical confidence among countries of the region].]
 

[8.2 Upon the request of a Party, another Party may provide technical assistance [or information], to the extent of its abilities {[and on mutually agreed terms], with the aim of aiding in the fulfillment of this [Chapter] and strengthening the standards-related [and metric] activities, [[processes, systems and measures][technical regulations, conformity assessment and metrology]] of the Party making the request.} {with regard to standardization infrastructure and measures] to help implement the provisions of this [Chapter] and to strengthen the requesting Party's standardization activities [processes, systems and measures][technical regulations, conformity assessments] and metrology]}.]
 

[8.3 Parties shall encourage their national [standardizing][standardization] bodies [with a presence][to be represented], in international [standardizing][standardization] bodies [whenever][if]possible, to foster the search for common positions in developing international standards, whether through regional [standardizing][standardization] bodies or with the national [standardizing][standardization] bodies of [another Party][other parties].]
 

[8.4 Upon request, a Party shall assist another Party, to the extent of its ability, to participate in international standardizing bodies.]
 

[8.5 {Specific [cooperation and][technical] assistance [and cooperation] programmes [in the areas of standardization, conformity assessment, metrology and accreditation] could [advantageously][may be[aided][conducted][in the different areas] by specialized][by assistance from] the regional organizations [, [such as][and particularly] COPANT, SIM and IAAC}{Specific [assistance and cooperation][cooperation and assistance] programs in the areas of [standards][standardization], conformity assessment [authorization procedures][and] metrology [and accreditation] could be conducted [with certain advantages, in different areas] by specialized regional bodies [, [specifically][such as] COPANT, [the]SIM [and the][the]IAAC}[in guiding the promotion of specific programmes for assistance and cooperation in the areas of standards, conformity assessment, metrology[authorization procedures] and accreditation.][These programs can involve international and multilateral organizations.][Such programs could, as appropriate, involve international and multilateral entities.]]]
 

[8X1 The Parties may conduct joint efforts for the purpose of managing technical cooperation received from non-Party countries.]
 

[8.6 Such programs could, as appropriate, involve international and multilateral entities.]
 

[8.7 The Parties [agree to][shall] provide technical [and financial] assistance and cooperation to [the] other Parties, according to the means and under conditions mutually agreed upon, [as well as to][and] facilitate the provision of such assistance and cooperation by competent international or hemispheric organizations, in order to strengthen activities directed at:
 

[a) the application of this [Chapter];]
 

[b) the implementation of the WTO-TBT Agreement;]
 

[c) more active participation in international standardization, [accreditation][conformity assessment] and metrology processes; ]
 

[d) strengthening of the physical and technical infrastructure of domestic systems for [standardization, technical regulations,] conformity assessment, [standardization, accreditation][and][,] metrology [and information]; ]
 

[e) support for the development and application of international and regional standards; and]
 

[f) education, instruction and training of the necessary human resources.]]
 

[Article 9. Special and Differential Treatment]
 

[9X1 The Parties shall accord to countries with smaller economies within this Agreement differential and more favourable treatment with respect to the preparation, adoption and application of standards-related measures, authorization procedures and metrology.
 

The Committee on Technical Barriers to Trade shall be empowered to grant to countries with smaller economies, upon request, specific exemptions for a limited time from compliance with all or part of their obligations arising under the present Agreement.]
 

[9.1 It is recognized that some countries of the hemisphere have special problems of standards infrastructure and human technical insufficiency. {The special development and trade needs of these Parties, as well as their technological stage of development, could diminish their capacity to comprehensively conform to the obligations arising from this Agreement.}{The special development and trade needs of these countries limit their ability to meet their obligations under the WTO Agreement on Technical Barriers to Trade serving as basis for this Agreement.}]
 

[9X2 It is recognized that some developing countries may have special problems, particularly of an institutional nature and of infrastructure, in drawing up and applying standards-related measures. It is further recognized that the special development and trade needs of these Parties, as well as their technological stage of development, could diminish their capacity to comprehensively conform to the obligations arising from this Agreement]
 

[9.2 Parties recognize that, although international standards, guides or recommendations may exist, in their particular technological and socio-economic conditions, developing countries adopt certain technical regulations, standards or conformity assessment procedures aimed at preserving indigenous technology and production methods and processed compatible with their development needs. [Parties therefore recognize that developing countries should not be expected to use international standards as a basis for their technical regulations or standards, including testing methods, that are not appropriate to their development, financial and trade needs].]
 

[9.3 Special and [Differential][differential] treatment in the areas of [Technical Barriers to Trade][technical barriers to trade] shall constitute:
 

[a) flexibility for bilateral arrangements between countries that are Parties to this Agreement]
 

[b) phasing of time for full implementation of the Agreement for countries not possessing the adequate standards infrastructure]
 

[c) giving priority to technical assistance for those countries in training and cooperation programmes geared to upgrading the capability of those countries engaged in regional trade]
 

[d) the more developed parties shall make all reasonable efforts to provide technical assistance in order to assist the less developed parties to this agreement to better fulfill their obligations.]]
 

[9X3 In applying and implementing this [Chapter], the Parties shall take into account the problems and constraints stemming from differences in development levels and the size of the economies of the countries. In this regard, they shall implement special technical and financial assistance programs for strengthening institutions and infrastructure relevant to the preparation, adoption and application of standards-related, accreditation and metrology measures, as well in connection with technological development, so as not to create technical barriers to the expansion and diversification of trade flows among said countries.]
 

[Article 10. Committee on Technical Barriers to Trade] (not included in w/121) 
 

[The parties hereby establish a Committee on Technical Barriers to Trade to review the working of this [[Chapter]] and matters relating to technical [cooperation and] assistance [to the Parties][in the region].]
 

[10X1 By virtue of the present agreement, a Committee on Technical Barriers to Trade is hereby established, which shall be made up of one regular and one alternate representative from each party. The Committee shall elect its chairperson and meet as necessary, at least once each year, to give the Parties an opportunity to consult with one another on any question relating to the operation of the present agreement or the fulfillment of their objectives.]
 

[10X2 The Committee shall consider matters relating to this [Chapter], and shall have the following duties:
 

a) to analyze and propose solutions for cases in which standards-related measures, authorization procedures or metrology problems are considered by a Party to constitute technical barriers to trade.
 

b) to facilitate the process through which the Parties can make their standards-related measures, authorization procedures and metrology compatible.
 

c) to foster cooperation activities between the Parties.
 

d) to assist in the risk assessments carried out by the Parties.
 

e) to cooperate in the development and strengthening of standards-related measures and metrology by the parties, and
 

f) to facilitate the process by which the parties can establish mutual recognition agreements.]
 

[Article 11 Consultations and Dispute Settlement]
 

[11.1 In the event of a dispute between parties regarding the provisions of this [Chapter], the Party affected may have recourse to either the Committee on Technical Barriers to Trade, or the dispute settlement mechanism under this agreement. Parties may not seek remedies through both avenues simultaneously.]
 

[11.2 In the event that the technical recommendation issued by the Committee fails to settle the dispute between the Parties, they may invoke the dispute settlement mechanism established in the agreement. The technical information produced by the Committee shall be considered if consultations are convened under the dispute settlement mechanism.]
 

[Article 12. Definitions]
 

[[For the purposes of this [Chapter]][The Terms used in][the definitions and explanatory notes of Annex 1 of the WTO TBT Agreement, in accordance with] the current ISO/IEC Guide 2 "General Terms and their definitions in relating to standards and standards related matters" shall apply[. The][, as will the] international vocabulary of the Basic and General Terms in Metrology jointly prepared by ISO, IEC, BIPM, IFCC, IUPAC and OIML shall apply.[In addition the following shall be defined as follows:][In addition, the following definitions shall apply:]
 

[Administrative Refusal: actions taken by a public administration body in the importing Party, in the exercise of their rights,to refuse a shipment access to their territory [or the provision of a service], for technical reasons.]
 

[Authorization Procedure: any administrative process which is obligatory for {obtaining a registration, such as a permit}{obtaining registration, a permit}, license or any other authorization, with the aim that a good [or service] be[produced,] marketed or used for defined purposes or according to established conditions.]
 

[{Certificate of Conformity} {Mark of Conformity for Certification}: a mark applied or issued in accordance with a certification system, indicating that the product, process [or service] in question follows a standard or other such specific document.]
 

[Conformity Assessment Procedure: any procedure used, directly or indirectly, to determine that a technical regulation or standard is fulfilled, including, among others, sampling, testing and inspection, evaluation, verification and assurance of conformity, registration, accreditation and approval, separately or in various combinations.]
 

[International Standard: a standard, or other guide or recommendation, adopted by an international standardizing body and made available to the public.]
 

[International [Standardizing] [Standardization] Body] [Bodies for Standardization and Metrology]: a standardizing body whose membership is open to the relevant bodies belonging to at least all the Parties in the WTO Agreement on Technical Obstacles to Trade, including the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the Codex Alimentarius Commission, the International Organization for Legal Metrology (IOLM)[IOLM], the International Commission on Radiological Units and Measures (ICRU), or any other body appointed by the Parties.]
 

[Legitimate Objectives: [{include the guarantee for safety or protection of human, animal or plant life or health, the environment, or the prevention of practices which may mislead or deceive consumers, including issues related to identifying goods [or services], taking into account, among other things, where appropriate, fundamental climatic or other geographical factors, technological or infrastructural factors, or scientific justification.}][{include national security requirements, the prevention of deceptive practices, protection of human health or safety, animal or plant life or health, or the environment}.]]
 

[To Make Compatible: to bring different standards-related measures of the same scope approved by different standards-related bodies, to a level such that they are either identical, equivalent or have the effect of permitting goods [or services] to be used in place of one another or fulfill the same purpose.]
 

[National Standard: A standard prepared or adopted by a National Standards Body.]
 

[Pre-Measured Product: A packed or packaged product marketed by measured units.]
 

[Regional Standard: A standard prepared and promulgated by a Regional Standards Body such as the Pan American Standards Commission (COPANT).]
 

[RiskAssessment: assessment of the potential damage that any good [or service] traded between the Parties might cause {to human, animal, plant health or safety or to the environment}{to the achievement of legitimate objectives}.]
 

[Service: any service, {within the scope of application [subject to the FTAA Services [Chapter]][of this Agreement]}{within the scope of this Agreement} [which is subject to standardization or metrology measures and any others that the Parties may agree to in future negotiations].]
 

[Standards-Related Measure: A standard, technical regulation, or conformity assessment procedure.]
 

[Standardization Body: any body whose standardization activities are recognized.]
 

[Standard: Document approved by a recognized body, that provides, for common and repeated use, rules, guidelines, or characteristics for products [or for services] or related processes and production methods, with which compliance is not mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking, or labelling requirements as they apply to a product [or a service], process or production method. The definition of standard may also include a pattern or artifact used in metrology.]
 

[[WTO] TBT Agreement: the Agreement on Technical Barriers to Trade, which is part of the Agreement on the World Trade Organization (WTO).]
 

[Technical Competence: Aptitude [for] and [suitability for knowledge][suitable knowledge] about an issue, technique or subject.]
 

[Technical Regulation: Document which lays down product characteristics or their related processes and production{methods, including the}{methods (or the characteristics of services or related operating methods), including the} applicable administrative provisions, with which compliance is mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking, or labelling requirements as they apply to a {product, process or production method}{product, [services], production processed or methods or related operations}.]
 

[Traceability: Property of the result of a measurement or standard in a way that may be related to certain references, generally to national or international standards by means of a continuous chain of comparisons where all uncertainties are determined.]]]
 

TECHNICAL BARRIERS TO TRADE
 

1. Each Party shall make every effort to fully implement and abide by the World Trade Organization Agreement on Technical Barriers to Trade;
 

2. In order to assist the less developed Parties to this Agreement better fulfill their commitments the more developed Parties will make all reasonable efforts to provide technical assistance;
 

3. The Parties hereby establish a Committee on Technical Barriers to Trade which shall meet every second year to review matters related to this [Chapter], including any matter falling under the scope of the subject matter of the TBT noted in Paragraph 1 above that has a particular interest to Parties to the Agreement as well as issues related to the technical assistance as provided in paragraph 2 above.]

1.

1 Square brackets [ ] indicate that different points of view do exist on the text included between them. Wiggly brackets { } indicate that differences in translation may exist on texts included between them.

2.

2[The content of this [Chapter] will need to be modified as negotiations proceed to reflect decisions on negotiating modalities and results.]

3.

3 Note: for the Spanish version of this document, one delegation considers that the correct term in Spanish is "mercancía" and proposes that this term be changed throughout the Spanish version of the [Chapter]

4.

4 The delegation that proposed this bracketed text withdraws its proposal and accepts the other alternative.

5.

5 One delegation proposes to separate paragraph 16.5 and its subparagraphs a) and b) as a separate Article.

6.

6 Square brackets [ ] indicate that different points of view do exist on the text included between them. Wiggly brackets { } indicate that differences in translation may exist on texts included between them.

7.

7[The transition period is still to be defined.]

8.

8 Some delegations propose to substitute the term "producción nacional" in Spanish for "producción doméstica" throughout the text. This change only applies to the Spanish version.

9.

9 A delegation proposes to move Part II: Global Safeguards, composed of Article 10. Global Safeguards, after Article 4.

10.

10 A delegation proposes to move Part II: Global Safeguards, composed of Article 10. Global Safeguards, after Article 4.

11.

11 Several delegations propose to substitute this entire section 1.3 with the texts included at the end of this section.

12.

12 One delegation does not include machines in b), in c) instead of spare parts it says parts and in d) it changes "of" by "and". Other delegation does not include numeral h).

13.

13 Square brackets [ ] indicate that different points of view do exist on the text included between them. Wiggly brackets { } indicate that differences in translation may exist on texts included between them.

14.

14 One delegation requests including section B prior to article 9.

15.

15 One delegation requests moving Section B prior to Article 9.

16.

16 Square brackets [] indicate that different points of view do exist on the text included between them.

Wiggly brackets {} indicate that differences in translation may exist on texts included between them.

17.

17 One delegation proposes to make this change each time certificate of origin appears in the document to indicate their position that the proof of origin does not necessary need to be addressed by a certificate in a prescribed format.

18.

18This bracket closes at the end of point 2.4.13 and constitutes, as a whole, an alternative position to theone contained in the previous paragraph.

19.

19 This bracket closes at the end of point 3.1.15(b) and constitutes, as a whole, an alternative position to the one contained in the previous paragraph (3.1.1).

20.

20 Square brackets [ ] indicate that different points of view do exist on the text included between them. Wiggly brackets { } indicate that differences in translation may exist on texts included between them.

21.

21 It was proposed to place paragraphs 3.8, 3X3 and 5.9 under this subheading.

22.

22 It was proposed that paragraph 2.12 be placed under this subheading.

23.

23 It was proposed to keep the section on "Use of International Standards" under Article 2.

24.

24 It was proposed to include "Participation in International Fora" here. It was also proposed to create a separate subheading of "Participation in International Fora" under Article 2.

25.

25 It was proposed to place this text under Article 4 "Technical Regulations" rather than under Article 2 "Objectives and General Principles".

26.

26 It was proposed that this paragraph be placed under the subheading "Unnecessary Barriers to Trade" of Article 2.

27.

27 It was proposed that this paragraph be moved to Article 7, under the subheading "Enquiry Points".

28.

28 It was proposed to {place} {keep }the section on "Use of International Standards" under Article 2.

29.

29 It was proposed that this subheading be placed under Article 2.

30.

30 It was proposed this paragraph be moved to Article 2 under the section "[Relationship with International Technical Fora][ and Participation in International Fora]".

31.

31 It was proposed this paragraph be moved to Article 2 under the section "[Relationship with International Technical Fora][and Participation in International Fora]".

32.

32 It was proposed to {place} {keep} the section on "Use of International Standards" under Article 2.

33.

33 It was proposed that the subheading "Compatibility and Equivalence" be placed as a separate article.

34.

34 It was proposed that paragraph 2.10 be placed under this subheading.

35.

35 It was proposed that "Risk Assessment" be placed as a separate article.

36.

36 It was proposed that this subheading be placed in Article 2.

37.

37 It was proposed this paragraph be moved to Article 2 under the section "[Relationship with International Technical Fora][and Participation in International Fora]".

38.

38 It was proposed that the subheading "Authorization Procedures" be placed in a separate article.

39.

39 It was proposed that paragraph 7.1 be placed under the subheading "Enquiry Points".

40.

40 It was proposed that paragraphs 2.15 and 7.1 be placed under this subheading.