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Document 02014A0830(02)-20231115
Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
Consolidated text: Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
ELI: http://data.europa.eu/eli/agree_internation/2014/494/2023-11-15
02014A0830(02) — EN — 15.11.2023 — 010.001
This text is meant purely as a documentation tool and has no legal effect. The Union's institutions do not assume any liability for its contents. The authentic versions of the relevant acts, including their preambles, are those published in the Official Journal of the European Union and available in EUR-Lex. Those official texts are directly accessible through the links embedded in this document
ASSOCIATION AGREEMENT (OJ L 261 30.8.2014, p. 4) |
Amended by:
Corrected by:
ASSOCIATION AGREEMENT
between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
PREAMBLE
THE KINGDOM OF BELGIUM,
THE REPUBLIC OF BULGARIA,
THE CZECH REPUBLIC,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE REPUBLIC OF ESTONIA,
IRELAND,
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
THE REPUBLIC OF CROATIA,
THE ITALIAN REPUBLIC,
THE REPUBLIC OF CYPRUS,
THE REPUBLIC OF LATVIA,
THE REPUBLIC OF LITHUANIA,
THE GRAND DUCHY OF LUXEMBOURG,
HUNGARY,
THE REPUBLIC OF MALTA,
THE KINGDOM OF THE NETHERLANDS,
THE REPUBLIC OF AUSTRIA,
THE REPUBLIC OF POLAND,
THE PORTUGUESE REPUBLIC,
ROMANIA,
THE REPUBLIC OF SLOVENIA,
THE SLOVAK REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty on European Union and the Treaty on the Functioning of the European Union, hereinafter referred to as ‘the Member States’,
THE EUROPEAN UNION, hereinafter referred to as ‘the Union’ or ‘the EU’ and
THE EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as ‘the Euratom’
of the one part, and
GEORGIA,
of the other part,
hereafter jointly referred to as ‘the Parties’,
CONSIDERING the strong links and common values of the Parties, established in the past through the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and Georgia, of the other part, and being developed within the framework of the Eastern Partnership as a specific dimension of the European Neighbourhood Policy and recognising the common desire of the Parties to further develop, strengthen and extend their relations in an ambitious and innovative way;
ACKNOWLEDGING the European aspirations and European choice of Georgia;
RECOGNISING that the common values on which the EU is built –democracy, respect for human rights and fundamental freedoms, and the rule of law – lie also at the heart of political association and economic integration as envisaged in this Agreement;
RECOGNISING that Georgia, an Eastern European country, is committed to implementing and promoting these values;
RECOGNISING that Georgia shares historical links and common values with the Member States;
TAKING INTO ACCOUNT that this Agreement shall not prejudice and leaves open the way for future progressive developments in EU-Georgia relations;
COMMITTED to further strengthening respect for fundamental freedoms, human rights, including the rights of persons belonging to minorities, democratic principles, the rule of law, and good governance, based on common values of the Parties;
UNDERSTANDING that internal reforms towards strengthening democracy and market economy will facilitate participation of Georgia in EU policies, programmes and agencies. This process and sustainable conflict settlement will mutually reinforce each other and will contribute to build confidence between communities divided by conflict;
WILLING to contribute to the political, socio-economic and institutional development of Georgia through wide-ranging cooperation in a broad spectrum of areas of common interest, such as the development of civil society, good governance, including in the field of taxation, trade integration and enhanced economic cooperation, institution building, public administration and civil service reform and fight against corruption, the reduction of poverty and cooperation in the field of freedom, security and justice necessary to effectively implement this Agreement and noting the EU's readiness to support relevant reforms in Georgia;
COMMITTED to all the principles and provisions of the Charter of the United Nations, the Organisation for Security and Cooperation in Europe (OSCE), in particular of the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe, the concluding documents of the Madrid, Istanbul and Vienna Conferences of 1991 and 1992 respectively, and the Charter of Paris for a New Europe of 1990, as well as the United Nations Universal Declaration of Human Rights of 1948 and the European Convention for the Protection of Human Rights and Fundamental Freedoms of 1950.
RECALLING their will to promote international peace and security as well as engaging in effective multilateralism and the peaceful settlement of disputes, in particular by cooperating to that end within the framework of the United Nations (UN) and the OSCE;
COMMITTED to international obligations to fighting against the proliferation of weapons of mass destruction and their means of delivery and to cooperating on disarmament;
RECOGNISING the added value of the active participation of the Parties in various regional cooperation formats;
DESIROUS to further develop regular political dialogue on bilateral and international issues of mutual interest, including regional aspects, taking into account the Common Foreign and Security Policy (CFSP) of the European Union, including the Common Security and Defence Policy (CSDP);
FULLY RESPECTING the principles of independence, sovereignty, territorial integrity and the inviolability of the internationally recognised borders under international law, the Charter of the United Nations, the Final Act of the Helsinki Conference on Security and Cooperation in Europe and relevant United Nations Security Council resolutions;
RECOGNISING the importance of the commitment of Georgia to reconciliation and its efforts to restore its territorial integrity and full and effective control over Georgian regions of Abkhazia and the Tskhnivali region/South Ossetia in pursuit of a peaceful and lasting conflict resolution based on principles of international law, and of the EU's commitment to support a peaceful and lasting resolution of the conflict;
RECOGNISING in this context the importance of pursuing the implementation of the Six-Point Agreement of 12 August 2008 and its subsequent implementing measures, of meaningful international presence for maintaining peace and security on the ground, of pursuing mutually supportive non-recognition and engagement policies, of supporting the Geneva International Discussions and of safe and dignified return of all internally displaced persons and refugees in line with principles of international law;
COMMITTED to provide the benefits of closer political association and economic integration of Georgia with the EU to all citizens of Georgia including the communities divided by conflict;
COMMITTED to combating organised crime and illicit trafficking and to further strengthening cooperation in the fight against terrorism;
COMMITTED to deepening their dialogue and cooperation on mobility, migration, asylum and border management taking also into account the EU-Georgia Mobility Partnership, with a comprehensive approach paying attention to legal migration, including circular migration, and to cooperation aimed at tackling illegal migration, trafficking in human beings and efficient implementation of the readmission agreement;
RECOGNISING the importance of introducing a visa free travel regime for the citizens of Georgia in due course, provided that conditions for well-managed and secure mobility are in place including the effective implementation of visa facilitation and readmission agreements;
COMMITTED to the principles of free market economy and the readiness of the EU to contribute to the economic reforms in Georgia, including in the framework of the European Neighbourhood Policy and the Eastern Partnership;
COMMITTED to achieve economic integration in particular through a Deep and Comprehensive Free Trade Area (DCFTA), as an integral part of this Agreement including regulatory approximation and in compliance with the rights and obligations arising out of the membership of the Parties in the World Trade Organisation (WTO);
BELIEVING that this Agreement will create a new climate for economic relations between the Parties and above all for the development of trade and investment, and will stimulate competition, which are factors crucial to economic restructuring and modernisation;
COMMITTED to respecting the principles of sustainable development, to protecting the environment and mitigating climate change, to continuous improvement of environmental governance and meeting environmental needs, including cross-border cooperation and implementation of multilateral international agreements;
COMMITTED to enhancing the security of energy supply, including the development of the Southern Corridor by, inter alia, promoting the development of appropriate projects in Georgia facilitating the development of relevant infrastructure, including for transit through Georgia, increasing market integration and gradual regulatory approximation towards key elements of the EU acquis, and promoting energy efficiency and the use of renewable energy sources;
ACKNOWLEDGING the need for enhanced energy cooperation, and the commitment of the Parties to implement the Energy Charter Treaty;
WILLING to improve the level of public health safety and protection of human health as an essential element for sustainable development and economic growth;
COMMITTED to enhancing people-to-people contacts, including through cooperation and exchanges in the fields of science and technology, business, youth, education and culture;
COMMITTED to promoting cross-border and inter-regional cooperation by both sides in the spirit of good neighbourly relations;
RECOGNISING the commitment of Georgia to progressively approximating its legislation in the relevant sectors with that of the EU, in accordance with this Agreement and to implementing it effectively;
RECOGNISING the commitment of Georgia to developing its administrative and institutional infrastructure to the extent necessary to enforce this Agreement;
TAKING ACCOUNT of the willingness of the EU to provide support for the implementation of reforms, and to use all available instruments of cooperation and technical, financial and economic assistance in this endeavour;
CONFIRMING that the provisions of this Agreement that fall within the scope of Title V of Part Three of the Treaty on the Functioning of the European Union bind the United Kingdom and Ireland as separate Contracting Parties, and not as part of the EU, unless the EU together with the United Kingdom and/or Ireland have jointly notified Georgia that the United Kingdom or Ireland is bound as part of the EU in accordance with Protocol No 21 on the position of the United Kingdom and Ireland in respect of the Area of Freedom, Security and Justice, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union. If the United Kingdom and/or Ireland ceases to be bound as part of the EU in accordance with Article 4a of that Protocol, the EU together with the United Kingdom and/or Ireland shall immediately inform Georgia of any change in their position in which case they shall remain bound by the provisions of this Agreement in their own right. The same applies to Denmark, in accordance with the Protocol No 22 on the position of Denmark, annexed to those Treaties.
HAVE DECIDED TO CONCLUDE THIS AGREEMENT:
Article 1
Objectives
The aims of this association are:
to promote political association and economic integration between the Parties based on common values and close links, including by increasing Georgia's participation in EU policies, programmes and agencies;
to provide a strengthened framework for enhanced political dialogue on all areas of mutual interest, allowing the development of close political relations between the Parties;
to contribute to the strengthening of democracy and to political, economic and institutional stability in Georgia;
to promote, preserve and strengthen peace and stability regionally and internationally, based on the principles of the Charter of the United Nations and the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe, including through joining efforts to eliminate sources of tension, enhance border security, and to promote cross-border cooperation and good neighbourly relations;
to promote cooperation aimed at peaceful conflict resolution;
to enhance cooperation in the area of freedom, security and justice with the aim of reinforcing the rule of law and the respect for human rights and fundamental freedoms;
to support the efforts of Georgia to develop its economic potential through international cooperation, including through the approximation of its legislation to that of the EU;
to achieve Georgia's gradual economic integration into the EU Internal Market, as stipulated in this Agreement, in particular through establishing a Deep and Comprehensive Free Trade Area which will provide for far-reaching market access on the basis of sustained and comprehensive regulatory approximation in compliance with the rights and obligations arising from its WTO membership;
to establish conditions for an increasingly close cooperation in other areas of mutual interest.
TITLE I
GENERAL PRINCIPLES
Article 2
General Principles
TITLE II
POLITICAL DIALOGUE AND REFORM, COOPERATION IN THE FIELD OF FOREIGN AND SECURITY POLICY
Article 3
Aims of political dialogue
The aims of political dialogue shall be:
to deepen political association and increase political and security policy convergence and effectiveness;
to promote the principles of territorial integrity, inviolability of internationally recognised borders, sovereignty and independence, as enshrined in the Charter of the United Nations and the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe;
to promote peaceful conflict resolution;
to promote international stability and security based on effective multilateralism;
to strengthen cooperation and dialogue between the Parties on international security and crisis management, in particular in order to address global and regional challenges and key threats;
to strengthen the cooperation in the fight against the proliferation of weapons of mass destruction (WMD) and their delivery systems including the conversion to alternative employment of scientists formerly employed in WMD programmes;
to foster result-oriented and practical cooperation between the Parties for achieving peace, security and stability on the European continent;
to strengthen respect for democratic principles, the rule of law and good governance, human rights and fundamental freedoms, including media freedom and the rights of persons belonging to minorities, and to contribute to consolidating domestic political reforms;
to develop dialogue and to deepen the cooperation of the Parties in the field of security and defence;
to work to further promote regional cooperation in various formats;
to provide all benefits of closer political association between the EU and Georgia, including increased security policy convergence to all citizens of Georgia within its internationally recognised borders.
Article 4
Domestic reform
The Parties shall cooperate on developing, consolidating and increasing the stability and effectiveness of democratic institutions and the rule of law; on ensuring respect for human rights and fundamental freedoms; on making further progress on judicial and legal reform, so that the independence of the judiciary is guaranteed, strengthening its administrative capacity and guaranteeing impartiality and effectiveness of law enforcement bodies; on further pursuing the public administration reform and on building an accountable, efficient, effective, transparent and professional civil service; and on continuing effective fight against corruption, particularly in view of enhancing international cooperation on combating corruption, and ensuring effective implementation of relevant international legal instruments, such as the United Nations Convention Against Corruption of 2003.
Article 5
Foreign and security policy
Article 6
Serious crimes of international concern
Article 7
Conflict prevention and crisis management
The Parties shall enhance practical cooperation in conflict prevention and crisis management, in particular with a view to possible participation of Georgia in EU-led civilian and military crisis management operations as well as relevant exercises and training, on a case-by-case basis and following possible invitation by the EU.
Article 8
Regional stability
Article 9
Peaceful conflict resolution
Article 10
Weapons of mass destruction
The Parties furthermore agree to cooperate and to contribute to countering the proliferation of WMD and their means of delivery by:
taking steps to sign, ratify, or accede to, as appropriate, and fully implement, all other relevant international instruments; and
establishing an effective system of national export controls, controlling the export as well as transit of WMD-related goods, including a WMD end-use control on dual-use technologies, and containing effective sanctions for breaches of export controls.
Article 11
Small arms and light weapons and conventional arms exports control
Article 12
Fight against terrorism
TITLE III
FREEDOM, SECURITY AND JUSTICE
Article 13
Rule of law and respect for human rights and fundamental freedoms
Article 14
Protection of personal data
The Parties agree to cooperate in order to ensure a high level of protection of personal data in accordance with the EU, Council of Europe and international legal instruments and standards referred to in Annex I to this Agreement.
Article 15
Cooperation on migration, asylum and border management
Cooperation will be based on specific needs assessments conducted in mutual consultation between the Parties and be implemented in accordance with their relevant legislation in force. It will, in particular, focus on:
the root causes and the consequences of migration;
the development and implementation of national legislation and practices as regards international protection, with a view to satisfying the provisions of the Geneva Convention relating to the Status of Refugees of 1951 and of the Protocol relating to the Status of Refugees of 1967 and of other relevant international instruments, such as the European Convention on the Protection of Human Rights and Fundamental Freedoms of 1950, and to ensuring the respect of the principle of ‘non-refoulement’;
the admission rules and rights and status of persons admitted, fair treatment and integration of lawfully residing non-nationals education and training and measures against racism and xenophobia;
the enhancement of an effective and preventive policy against illegal migration, smuggling of migrants and trafficking in human beings including the issue of how to combat networks of smugglers and traffickers and how to protect the victims of such trafficking;
the implementation of the Working Arrangement on the establishment of operational cooperation between the European Agency for the Management of Operational Cooperation at the External Borders of the Member States of the European Union (FRONTEX) and the Ministry of Internal Affairs (MIA) of Georgia, signed on 4 December 2008;
in the areas of document security and border management, issues such as organisation, training, best practices and other operational measures.
Article 16
Movement of persons and readmission
The Parties will ensure the full implementation of:
the Agreement between the European Union and Georgia on the readmission of persons residing without authorisation, which entered into force on 1 March 2011; and
the Agreement between the European Union and Georgia on the facilitation of the issuance of visas, which entered into force on 1 March 2011.
Article 17
The fight against organised crime and corruption
The Parties shall cooperate on combating and preventing criminal and illegal activities, in particular transnational activities, organised or otherwise, such as:
smuggling and trafficking in human beings as well as small arms and illicit drugs;
smuggling and trafficking in goods;
illegal economic and financial activities such as counterfeiting, fiscal fraud and public procurement fraud;
embezzlement in projects funded by international donors;
active and passive corruption, both in the private and public sector;
forging documents, submitting false statements; and
cybercrime.
Article 18
Illicit drugs
Article 19
Money laundering and terrorism financing
This cooperation extends to the recovery of assets or funds derived from the proceeds of crime.
Article 20
Cooperation in the fight against terrorism
In full accordance with the principles underlying the fight against terrorism as set out in Article 12 of this Agreement, the Parties reaffirm the importance of a law enforcement and judicial approach to the fight against terrorism and agree to cooperate in the prevention and suppression of terrorism in particular by:
ensuring the criminalisation of terrorist offences, in line with the definition contained in the Council Framework Decision 2008/919/JHA of 28 November 2008 amending Framework Decision 2002/475/JHA on combatting terrorism;
exchanging information on terrorist groups and individuals and their support networks, in accordance with international and national law, in particular as regards data protection and the protection of privacy;
exchanging experience in the prevention and suppression of terrorism, means and methods and their technical aspects, as well as on training, in accordance with applicable law;
sharing information on best practices in addressing and countering radicalisation and recruitment, and on promoting rehabilitation;
exchanging views and experience concerning cross-border movement and travel of terrorist suspects as well as concerning terrorist threats;
sharing best practices as regards the protection of human rights in the fight against terrorism, in particular in relation to criminal justice proceedings;
taking measures against the threat of chemical, biological, radiological and nuclear terrorism and undertaking the measures necessary to prevent the acquisition, transfer and use for terrorist purposes of chemical, biological, radiological and nuclear materials as well as to prevent illegal acts against high risk chemical, biological, radiological and nuclear facilities.
Article 21
Legal cooperation
TITLE IV
TRADE AND TRADE-RELATED MATTERS
CHAPTER 1
National Treatment and Market Access For Goods
Article 22
Objective
The Parties shall establish a free trade area starting from the entry into force of this Agreement, in accordance with the provisions of this Agreement and in conformity with Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994).
Article 23
Scope and coverage
Article 24
Definition of customs duties
For the purposes of this Chapter, a ‘customs duty’ includes any duty or charge of any kind imposed on, or in connection with, the import or export of a good, including any form of surtax or surcharge imposed on or in connection with such import or export. A ‘customs duty’ does not include any:
charge equivalent to an internal tax imposed consistently with Article 31 of this Agreement;
duties imposed consistently with Chapter 2 (Trade Remedies) of Title IV (Trade and Trade-related Matters) of this Agreement;
fees or other charges imposed consistently with Article 30 of this Agreement.
Article 25
Classification of goods
The classification of goods in trade between the Parties shall be that set out in each Party's respective tariff nomenclature in conformity with the 2012 Harmonised System based on the International Convention on the Harmonised Commodity Description and Coding System of 1983 (HS) and subsequent amendments thereto.
Article 26
Elimination of customs duties on imports
Article 27
Anti-circumvention mechanism for agricultural products and processed agricultural products
The suspension shall be applicable for a period of six months and shall take effect on the date of publication of the decision to suspend preferential treatment in the Official Journal of the European Union.
Article 28
Standstill
Neither Party may adopt any new customs duty, on a good originating in the other Party or may increase any customs duty applied on the date of entry into force of this Agreement. This shall not preclude that either Party may maintain or increase a customs duty as authorised by the Dispute Settlement Body (DSB) of the WTO.
Article 29
Customs duties on exports
Neither Party shall adopt or maintain any customs duty or tax, other than internal charges applied in conformity with Article 30 of this Agreement, on, or in connection with, the export of goods to the territory of the other Party.
Article 30
Fees and other charges
Each Party shall ensure, in accordance with Article VIII of GATT 1994 and the interpretative notes thereon, that all fees and charges of whatever character other than customs duties or other measures referred to in Article 26 of this Agreement, imposed on, or in connection with, the import or export of goods are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
Article 31
National treatment
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including the interpretative notes thereon. To that end, Article III of GATT 1994 and the interpretative notes thereon are incorporated into this Agreement and made an integral part thereof.
Article 32
Import and export restrictions
Neither Party shall adopt or maintain any prohibition or restriction on the import of any good of the other Party or on the export or sale for export of any good destined for the territory of the other Party, except as otherwise provided in this Agreement or in accordance with Article XI of GATT 1994 and the interpretative notes thereon. To that end, Article XI of GATT 1994 and the interpretative notes thereon are incorporated into this Agreement and made an integral part thereof.
Article 33
General exceptions
Nothing in this Chapter shall be construed to prevent the adoption or enforcement by any Party of measures in accordance with Articles XX and XXI of GATT 1994 and any relevant interpretative notes to those Articles under GATT 1994, which are hereby incorporated into this Agreement and made an integral part thereof.
Article 34
Temporary withdrawal of preferences
For the purposes of this Article, a failure to provide administrative cooperation or assistance shall mean, inter alia:
a repeated failure to respect the obligations to verify the originating status of the good(s) concerned;
a repeated refusal or undue delay in carrying out and/or communicating the results of subsequent verification of the proof of origin;
a repeated refusal or undue delay in obtaining authorisation to conduct enquiry visits to determine the authenticity of documents or accuracy of information relevant to the granting of the preferential treatment in question.
The application of a temporary suspension shall be subject to the following conditions:
the Party which has made a finding, on the basis of objective information, of a failure to provide administrative cooperation or assistance and/or of irregularities or fraud from the other Party, shall without undue delay notify the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, of its finding together with the objective information and enter into consultations within that Committee, on the basis of all relevant information and objective findings, with a view to reaching a solution acceptable to both Parties;
where the Parties have entered into consultations within the Association Committee in Trade configuration and have failed to agree on an acceptable solution within three months following the notification, the Party concerned may temporarily suspend the relevant preferential treatment of the good(s) concerned. A temporary suspension shall be notified to the Association Committee in Trade configuration without undue delay;
temporary suspensions under this Article shall be limited to that necessary to protect the financial interests of the Party concerned. They shall not exceed a period of six months, which may be renewed, if at the date of expiry nothing has changed with respect to the condition that gave rise to the initial suspension. They shall be subject to periodic consultations within the Association Committee in Trade configuration, in particular with a view to their termination as soon as the conditions for their application no longer apply.
Article 35
Management of administrative errors
In case of an error by the competent authorities in the proper management of the preferential system at export, and in particular in the application of the provisions of Protocol I to this Agreement concerning the definition of originating products and methods of administrative cooperation, where this error leads to consequences in terms of import duties, the Party facing such consequences may request the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, to examine the possibilities of adopting all appropriate measures with a view to resolving the situation.
Article 36
Agreements with other countries
CHAPTER 2
Trade remedies
Article 37
General provisions
Article 38
Transparency
Article 39
Application of measures
Article 40
General provisions
Article 41
Transparency
Article 42
Consideration of public interest
Anti-dumping or countervailing measures may not be applied by a Party where, on the basis of the information made available during the investigation, it can clearly be concluded that it is not in the public interest to apply such measures. The public interest determination shall be based on an appreciation of all the various interests taken as a whole, including the interests of the domestic industry, users, consumers and importers to the extent that they have provided relevant information to the investigating authorities.
Article 43
Lesser duty rule
Should a Party decide to impose a provisional or a definitive anti-dumping or a countervailing duty, the amount of such duty shall not exceed the margin of dumping or the total amount of countervailable subsidies, but it should be less than the margin of dumping or the total amount of countervailable subsidies if such a lesser duty would be adequate to remove the injury to the domestic industry.
CHAPTER 3
Technical barriers to trade, standardisation, metrology, accreditation and conformity assessment
Article 44
Scope and definitions
Article 45
Affirmation of the TBT Agreement
The Parties affirm their existing rights and obligations with respect to each other under the TBT Agreement which is hereby incorporated into this Agreement and made an integral part thereof.
Article 46
Technical cooperation
In their cooperation, the Parties shall seek to identify, develop and promote trade facilitating initiatives which may include, but are not limited to:
reinforcing regulatory cooperation through the exchange of data and experience, and through scientific and technical cooperation, with a view to improving the quality of their technical regulations, standards, market surveillance, conformity assessment and accreditation, and making efficient use of regulatory resources;
promoting and encouraging cooperation between their respective organisations, public or private, responsible for metrology, standardisation, market surveillance, conformity assessment and accreditation;
fostering the development of the quality infrastructure for standardisation, metrology, accreditation, conformity assessment and the market surveillance system in Georgia;
promoting the participation of Georgia in the work of related European organisations;
seeking solutions to technical barriers to trade that may arise; and
where appropriate, undertaking efforts to coordinate their positions on matters of mutual interest in international trade and regulatory organisations such as the WTO and the United Nations Economic Commission for Europe (UNECE).
Article 47
Approximation of technical regulations, standards, and conformity assessment
With a view to reaching these objectives, Georgia shall:
having regard to its priorities, progressively approximate its legislation to the relevant Union acquis; and
achieve and maintain the level of administrative and institutional effectiveness necessary to provide an effective and transparent system that is required for the implementation of this Chapter.
With a view to integrating its standardisation system, Georgia shall use best endeavours to ensure that its standards body:
progressively transposes the corpus of European standards (EN) as national standards, including the harmonised European standards, the voluntary use of which shall give presumption of conformity with Union legislation transposed into Georgian legislation;
simultaneously with such transposition, withdraws conflicting national standards;
progressively fulfils the other conditions for full membership of the European standards organisations.
Article 48
Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA)
The Parties may ultimately agree to add an Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) as a Protocol to this Agreement covering one or more sectors agreed upon following verification by the Union that the relevant Georgian horizontal and sectoral legislation, institutions and standards have been fully approximated to those of the Union. Such an ACAA will provide that trade between the Parties in products in the sectors that it covers shall take place under the same conditions as those applying to trade in such products between the Member States.
Article 49
Marking and labelling
Regarding obligatory marking or labelling in particular, the Parties agree that:
they will endeavour to minimise their needs for marking or labelling, except as required for the adoption of the Union acquis in this area and for the protection of health, safety or the environment, or for other reasonable public policy purposes;
a Party may determine the form of labelling or marking but shall not require the approval, the registration or the certification of labels; and
the Parties retain the right to require the information on the label or marking to be in a specified language.
CHAPTER 4
Sanitary and phytosanitary measures
Article 50
Objective
The objective of this Chapter is to facilitate trade in commodities covered by sanitary and phytosanitary measures (SPS measures), including all measures listed in Annex IV to this Agreement, between the Parties, whilst safeguarding human, animal or plant life or health, by:
ensuring full transparency as regards measures applicable to trade, listed in Annex IV to this Agreement;
approximating the Georgian regulatory system to that of the Union;
recognising the animal and plant health status of the Parties and applying the principle of regionalisation;
establishing a mechanism for the recognition of equivalence of measures maintained by a Party, listed in Annex IV to this Agreement;
continuing to implement the SPS Agreement;
establishing mechanisms and procedures for trade facilitation; and
improving communication and cooperation between the Parties on measures listed in Annex IV to this Agreement.
Article 51
Multilateral obligations
The Parties re-affirm their rights and obligations under the WTO Agreements, and in particular the SPS Agreement.
Article 52
Scope
This Chapter shall apply to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties, including all measures listed in Annex IV to this Agreement. This scope is without prejudice to the scope of approximation as set out in Article 55 of this Agreement.
Article 53
Definitions
For the purposes of this Chapter, the following definitions shall apply:
‘sanitary and phytosanitary measures’ means measures as defined in paragraph 1 of Annex A to the SPS Agreement (SPS measures);
‘animals’ means animals as defined in the Terrestrial Animal Health Code or the Aquatic Animal Health Code of the World Organisation for Animal Health (OIE), respectively;
‘animal products’ means products of animal origin, including aquatic animal products as defined in the Aquatic Animal Health Code of the OIE;
‘animal by-products not intended for human consumption’ means entire bodies or parts of animals, products of animal origin or other products obtained from animals that are not intended for human consumption as listed in Part 2(II) of Annex IV-A to this Agreement;
‘plants’ means living plants and specified living parts thereof, including seeds and germplasm:
fruits, in the botanical sense, other than those preserved by deep freezing;
vegetables, other than those preserved by deep freezing;
tubers, corms, bulbs, rhizomes;
cut flowers;
branches with foliage;
cut trees retaining foliage;
plant tissue cultures;
leaves, foliage;
live pollen; and
bud-wood, cuttings, scions.
‘plant products’ means products of plant origin, unprocessed or having undergone simple preparation in so far as these are not plants, set out in Part 3 of Annex IV-A to this Agreement;
‘seeds’ means seeds in the botanical sense, intended for planting;
‘pests’ means any species, strain or biotype of plant, animal or pathogenic agent injurious to plants or plant products (harmful organisms);
‘protected zones’ means zones within the meaning of Article 2(1)(h) of Council Directive 2000/29/EC of 8 May 2000 on protective measures against the introduction into the Community of organisms harmful to plants or plant products and against their spread within the Community, or any successor provision;
‘animal disease’ means a clinical or pathological manifestation in animals of an infection;
‘aquaculture disease’ means clinical or non-clinical infection with one or more of the aetiological agents of the diseases referred to in the Aquatic Animal Health Code of the OIE;
‘infection in animals’ means the situation where animals maintain an infectious agent with or without presence of clinical or pathological manifestation of an infection;
‘animal welfare standards’ means standards for the protection of animals developed and applied by the Parties and, as appropriate, in line with the OIE standards;
‘appropriate level of sanitary and phytosanitary protection’ means the appropriate level of sanitary and phytosanitary protection as defined in paragraph 5 of Annex A to the SPS Agreement;
‘region’ means with regard to animal health a zone or a region as defined in the Terrestrial Animal Health Code of the OIE, and with regard to aquaculture a zone as defined in the Aquatic Animal Health Code of the OIE. For the Union the term ‘territory’ or ‘country’ shall mean the territory of the Union;
‘pest free area (PFA)’ means an area in which a specific pest does not occur as demonstrated by scientific evidence and in which, where appropriate, this condition is being officially maintained;
‘regionalisation’ means the concept of regionalisation as described in Article 6 of the SPS Agreement;
‘consignment of animals or animal products’ means a number of animals or a quantity of animal products of the same type, covered by the same certificate or document, conveyed by the same means of transport, consigned by a single consignor and originating in the same exporting Party or region(s) of the Party. A consignment of animals may be composed of one or more commodities or lots;
‘consignment of plants or plant products’ means a quantity of plants, plant products and/or other objects being moved from a Party to another Party and covered, when required, by a single phytosanitary certificate. A consignment may be composed of one or more commodities or lots;
‘lot’ means a number or units of a single commodity, identifiable by its homogeneity of composition and origin, and forming part of a consignment;
‘equivalence for trade purposes’ (equivalence) means that the measures listed in Annex IV to this Agreement applied in the exporting Party, whether or not different from the measures listed in that Annex applied in the importing Party, objectively achieve the importing Party's appropriate level of protection or acceptable level of risk;
‘sector’ means the production and trade structure for a product or category of products in a Party;
‘sub-sector’ means a well-defined and controlled part of a sector;
‘commodity’ means the products or objects referred to in points 2 to 7;
‘specific import permit’ means a formal prior authorisation by the competent authorities of the importing Party addressed to an individual importer as a condition for import of a single consignment or multiple consignments of a commodity from the exporting Party, within the scope of this Chapter;
‘working days’ means weekdays except Sunday, Saturday and public holidays in one of the Parties;
‘inspection’ means the examination of any aspect of feed, food, animal health and animal welfare in order to verify that such aspect(s) comply with the legal requirements of feed and food law and animal health and animal welfare rules;
‘plant health inspection’ means official visual examination of plants, plant products or other regulated objects to determine if pests are present and/or to determine compliance with phytosanitary regulations;
‘verification’ means checking, by examination and consideration of objective evidence, whether specified requirements have been fulfilled.
Article 54
Competent authorities
The Parties shall inform each other about the structure, organisation and division of competences of their competent authorities during the first meeting of the Sanitary and Phytosanitary Sub-Committee referred to in Article 65 of this Agreement (‘SPS Sub-Committee’). The Parties shall inform each other of any change of the structure, organisation and division of competences, including of the contact points, concerning such competent authorities.
Article 55
Gradual approximation
Article 56
Recognition for trade purposes of animal health and pest status and regional conditions
Recognition of status for animal diseases, infections in animals or pests
As regards animal diseases and infections in animals (including zoonosis), the following shall apply:
the importing Party shall recognise for trade purposes the animal health status of the exporting Party or its regions determined in accordance with the procedure set out in Annex VI to this Agreement, with respect to animal diseases specified in Annex V-A to this Agreement;
where a Party considers that it has, for its territory or a region within its territory, a special status with respect to a specific animal disease other than a disease listed in Annex V-A to this Agreement, it may request recognition of this status in accordance with the procedure laid down in Annex VI Part C to this Agreement. In this regard, the importing Party may request guarantees, accompanied with an explanatory note, in respect of imports of live animals and animal products, which are appropriate to the agreed status of the Parties;
the Parties recognise as the basis for trade between them the status of the territories or the regions, or the status in a sector or a sub-sector of the Parties related to the prevalence or the incidence of an animal disease other than a disease listed in Annex V-A to this Agreement, or related to infections in animals and/or the associated risk, as appropriate, as determined by the OIE. In this regard, the importing Party may request guarantees, in respect of imports of live animals and animal products, which are appropriate to the defined status in accordance with the recommendations of OIE; and
without prejudice to Articles 58, 60 and 64 of this Agreement, and unless the importing Party raises an explicit objection and requests supporting or additional information, consultations and/or verification, each Party shall take without undue delay the necessary legislative and administrative measures to allow trade on the basis of the provisions of points (a), (b) and (c) of this paragraph.
As regards pests, the following shall apply:
the Parties recognise for trade purposes the pest status in respect of pests specified in Annex V-B to this Agreement as determined in Annex VI-B; and
without prejudice to Articles 58, 60 and 64 of this Agreement, and unless the importing Party raises an explicit objection and requests supporting or additional information, consultations and/or verification, each Party shall take without undue delay the necessary legislative and administrative measures to allow trade on the basis of the provision of point (a) of this paragraph.
Recognition of regionalisation/zoning, pest free areas (PFAs) and protected zones (PZs)
The consultations referred to in the first subparagraph of this paragraph shall take place in accordance with Article 59(3) of this Agreement. The importing Party shall assess the additional information within 15 working days following receipt of the additional information. The verification referred to in the first subparagraph of this paragraph shall be carried out in accordance with Article 62 of this Agreement within 25 working days following receipt of the request for verification.
The consultations referred to in the first subparagraph of this paragraph shall take place in accordance with Article 59(3) of this Agreement. The importing Party shall assess the additional information within three months following the receipt of the additional information. The verification referred to in the first subparagraph of this paragraph shall be carried out in accordance with Article 62 of this Agreement within 12 months following the receipt of the request for verification, taking into account the biology of the pest and the crop concerned.
Compartmentalisation
Article 57
Recognition of equivalence
Equivalence may be recognised in relation to:
an individual measure;
a group of measures; or
a system applicable to a sector, sub-sector, commodities or a group of commodities.
The importing Party may withdraw or suspend equivalence on the basis of any amendment by one of the Parties of measures affecting equivalence, provided that the following procedure is followed:
in accordance with the provisions of Article 58(2) of this Agreement, the exporting Party shall inform the importing Party of any proposal for amendment of its measures for which equivalence of measures is recognised and the likely effect of the proposed measures on the equivalence which has been recognised. Within 30 working days following the receipt of this information, the importing Party shall inform the exporting Party whether or not equivalence would continue to be recognised on the basis of the proposed measures;
in accordance with the provisions of Article 58(2) of this Agreement, the importing Party shall promptly inform the exporting Party of any proposal for amendment of its measures on which recognition of equivalence has been based and the likely effect of the proposed measures on the equivalence which has been recognised. Should the importing Party not continue to recognise equivalence, the Parties may agree on the conditions under which to reinitiate the process referred to in paragraph 3 of this Article on the basis of the proposed measures.
The status of recognition of equivalence shall be listed in Annex XII to this Agreement.
Article 58
Transparency and exchange of information
The necessary level of cooperation should be reached in order to facilitate transmission of legislative documents upon request of one of the Parties.
To this effect, each Party shall notify the other Party of its contact points. The Parties shall also notify each other of any changes to the contact points.
Article 59
Notification, consultation and facilitation of communication
Each Party shall notify in writing the other Party within two working days of any serious or significant human, animal or plant health risk, including any food control emergencies or situations where there is a clearly identified risk of serious health effects associated with the consumption of animal or plant products, in particular:
any measures affecting regionalisation decisions referred to in Article 56 of this Agreement;
the presence or evolution of any animal disease listed in Annex V-A to this Agreement or of the regulated pests listed in Annex V-B to this Agreement;
findings of epidemiological importance or important associated risks with respect to animal diseases and pests which are not listed in Annexes V-A and V-B to this Agreement or which are new animal diseases or pests; and
any additional measures beyond the basic requirements to their respective measures taken to control or eradicate animal diseases or pests or protect public or plant health and any changes in prophylactic policies, including vaccination policies.
A notification in writing means notification by mail, fax or e-mail.
Article 60
Trade conditions
Import conditions prior to recognition of equivalence:
The Parties agree to subject imports of any commodity covered by Annexes IV-A and IV-C(2) and (3) to this Agreement to conditions prior to recognition of equivalence. Without prejudice to the decisions taken in accordance with Article 56 of this Agreement, the import conditions of the importing Party shall be applicable to the total territory of the exporting Party. Upon entry into force of this Agreement and in accordance with the provisions of Article 58 of this Agreement, the importing Party shall inform the exporting Party of its sanitary and/or phytosanitary import requirements for commodities referred to in Annexes IV-A and IV-C to this Agreement. This information shall include, as appropriate, the models for the official certificates or declarations or commercial documents, as prescribed by the importing Party; and
Any amendment or proposed amendment of the conditions referred to in paragraph 1(a) of this Article shall comply with the relevant notification procedures of the SPS Agreement;
Without prejudice to the provisions of Article 64 of this Agreement, the importing Party shall take into account the transport time between the Parties to establish the date of entering into force of the amended conditions referred to in paragraph 1(a) of this Article; and
If the importing Party fails to comply with the notification requirements referred to in paragraph 1(a) of this Article, it shall continue to accept the certificate or the attestation guaranteeing the previously applicable conditions until 30 days after the amended import conditions enter into force.
Import conditions after recognition of equivalence:
Within 90 days following the date of the decision on recognition of equivalence as specified in Article 57(10) of this Agreement, the Parties shall take the necessary legislative and administrative measures to implement the recognition of equivalence in order to allow on that basis trade between them of commodities referred to in Annexes IV-A and IV-C(2) and (3) to this Agreement. For those commodities, the model for the official certificate or official document required by the importing Party may, then, be replaced by a certificate drawn up as provided for in Annex X-B to this Agreement;
For commodities in sectors or sub-sectors for which not all measures are recognised as equivalent, trade shall continue on the basis of compliance with the conditions referred to in paragraph 1(a) of this Article. Upon request of the exporting Party, the provisions of paragraph 5 of this Article shall apply.
List of establishments, provisional approval
For the import of animal products referred to in Part 2 of Annex IV-A to this Agreement, upon request of the exporting Party accompanied by the appropriate guarantees, the importing Party shall provisionally approve processing establishments referred to in Annex VII.2 to this Agreement which are situated in the territory of the exporting Party, without prior inspection of individual establishments. Such approval shall be consistent with the conditions and provisions set out in Annex VII to this Agreement. Except when additional information is requested, the importing Party shall take the necessary legislative and/or administrative measures to allow import on that basis within 30 working days following the date of receipt of the request and the relevant guarantees by the importing Party.
The initial list of establishments shall be approved in accordance with the provisions of Annex VII to this Agreement.
For the import of animal products referred to in paragraph 2(a) of this Article, the exporting Party shall inform the importing Party of its list of establishments meeting the importing Party's requirements.
Article 61
Certification procedure
Article 62
Verification
In order to maintain confidence in the effective implementation of the provisions of this Chapter each Party has the right:
to carry out verification of all or part of the inspection and certification system of the other Party's authorities, and/or of other measures, where applicable, in accordance with the relevant international standards, guidelines and recommendations of Codex Alimentarius, OIE and IPPC;
to receive information from the other Party about its control system and be informed of the results of the controls carried out under that system respecting the confidentiality provisions applicable in either Party.
Article 63
Import checks and inspection fees
From that date the Parties may reciprocally approve each other's controls for certain commodities and, consequently reduce or replace the import checks for these commodities.
Article 64
Safeguard measures
Article 65
Sanitary and Phytosanitary Sub-Committee
SPS Sub-Committee shall have the following functions:
to consider any matter relating to this Chapter;
to monitor the implementation of this Chapter and examine all matters which may arise in relation to its implementation;
to review the Annexes IV to XII to this Agreement, notably in the light of progress made under the consultations and procedures provided for under this Chapter;
to modify by means of an endorsement decision Annexes IV to XII to this Agreement in the light of the review provided for in point (c) of this paragraph, or as otherwise provided in this Chapter; and
to give opinions and make recommendations to other bodies as defined in Title VIII (Institutional, General and Final Provisions) of this Agreement in light of the review provided for in point (c) of this paragraph.
CHAPTER 5
Customs and trade facilitation
Article 66
Objectives
Article 67
Legislation and procedures
The Parties agree that their respective trade and customs legislation, as a matter of principle, shall be stable and comprehensive, as well as that the provisions and the procedures shall be proportionate, transparent, predictable, non-discriminatory, impartial and applied uniformly and effectively and will, inter alia:
protect and facilitate legitimate trade through effective enforcement of and compliance with legislative requirements;
avoid unnecessary or discriminatory burdens on economic operators, prevent fraud and provide further facilitation for economic operators having a high level of compliance;
apply a Single Administrative Document (SAD) for the purposes of customs declarations;
►C1 take measures which lead to greater ◄ efficiency, transparency and simplification of customs procedures and practices at the border;
apply modern customs techniques, including risk assessment, post clearance controls and company audit methods in order to simplify and facilitate the entry, exit and the release of goods;
aim at reducing compliance costs and increasing predictability for all economic operators;
without prejudice to the application of objective risk assessment criteria, ensure the non-discriminatory administration of requirements and procedures applicable to imports, exports and goods in transit;
apply the international instruments applicable in the field of customs and trade including those developed by the World Customs Organisation (WCO), the Istanbul Convention on temporary admission of 1990, the International Convention on the Harmonised System of 1983, the WTO, the UN TIR Convention of 1975, the 1982 Convention on harmonisation of frontier controls of goods; and may take into account the WCO Framework of Standards to Secure and Facilitate Global Trade and European Commission guidelines such as the Customs Blueprints, where relevant;
take the necessary measures to reflect and implement the provisions of the Revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures of 1973;
provide for advance binding rulings on tariff classification and rules of origin. The Parties ensure that a ruling may be revoked or annulled only after notification to the affected operator and without retroactive effect, unless the rulings have been made on the basis of incorrect or incomplete information;
introduce and apply simplified procedures for authorised traders according to objective and non-discriminatory criteria;
set rules that ensure that any penalties imposed for breaches of customs regulations or procedural requirements be proportionate and non-discriminatory and, that their application, does not result in unwarranted and unjustified delays; and
apply transparent, non-discriminatory and proportionate rules where government agencies provide services also provided by the private sector.
In order to improve working methods, as well as to ensure non-discrimination, transparency, efficiency, integrity and accountability of operations, the Parties shall:
take further steps towards the reduction, the simplification and the standardisation of data and documentation required by customs and other relevant authorities;
simplify requirements and formalities wherever possible, with respect to the rapid release and clearance of goods;
provide effective, prompt and non-discriminatory procedures guaranteeing the right of appeal against customs and other relevant authorities' administrative actions, rulings and decisions affecting the goods submitted to customs. Such procedures for appeal shall be easily accessible and any costs shall be reasonable and commensurate with the costs incurred by the authorities to ensure the right of appeal;
take steps to ensure that where a disputed administrative action, ruling or decision is the subject of an appeal, goods should normally be released and duty payments may be left pending, subject to any safeguard measures judged necessary. Where required, the release of the goods should be subject to the provision of a guarantee, such as a surety or a deposit; and
ensure that the highest standards of integrity be maintained, in particular at the border, through the application of measures reflecting the principles of the relevant international conventions and instruments in this field, in particular the WCO Revised Arusha Declaration of 2003 and the European Commission Blueprint on Customs ethics of 2007, where appropriate.
The Parties agree to eliminate:
any requirements for the mandatory use of customs brokers; and
any requirements for the mandatory use of pre-shipment or destination inspections.
With regard to transit:
for the purposes of this Agreement, the transit rules and definitions set out in the WTO provisions, in particular Article V of GATT 1994, and related provisions, including any clarifications and amendments resulting from the Doha Round negotiations on trade facilitation shall apply. Those provisions also apply when the transit of goods begins or ends in the territory of a Party;
the Parties shall pursue the progressive interconnectivity of their respective customs transit systems, with a view to the future participation of Georgia in the common transit system ( 2 );
the Parties shall ensure cooperation and coordination between all relevant authorities in their territories to facilitate traffic in transit. Parties shall also promote cooperation between the authorities and the private sector in relation to transit.
Article 68
Relations with the business community
The Parties agree:
to ensure that their respective legislation and procedures are transparent, publicly available, as far as possible through electronic means, and contain a justification for their adoption. There should be regular consultations and a reasonable time period between the publication of new or amended provisions and their entry into force;
on the need for timely and regular consultations with trade representatives on legislative proposals and procedures related to customs and trade issues;
to make publicly available relevant notices of administrative nature, including authority's requirements and entry or exit procedures, hours of operations and operating procedures for customs offices at ports and border crossing points, and points of contact for information enquiries;
to foster cooperation between operators and relevant administrations, using non-arbitrary and publicly accessible procedures based, inter alia, on those promulgated by the WCO; and
to ensure that their respective customs and customs-related requirements and procedures continue to meet the legitimate needs of the trading community, follow best practices, and remain the least trade-restrictive possible.
Article 69
Fees and charges
With regard to all fees and charges of whatever character imposed by the customs authorities of each Party, including fees and charges for tasks undertaken on behalf of the said authorities, upon or in connection with import or export and without prejudice to the relevant provisions of Chapter 1 (National Treatment and Market Access for Goods) of Title IV (Trade and Trade-related Matters) of this Agreement:
fees and charges may only be imposed for services provided at the request of the declarant outside normal working conditions, hours of operation and in places other than those referred to in the customs regulations, as well as for any formality related to such services and required for undertaking such import or export;
fees and charges shall not exceed the cost of the service provided;
fees and charges shall not be calculated on an ad valorem basis;
the information on the fees and the charges shall be published via an officially designated medium, and where feasible and possible, an official website. This information shall include the reason for the fee or the charge for the service provided, the responsible authority, the fees and the charges that will be applied, and when and how payment is to be made; and
new or amended fees and charges shall not be imposed until information on them is published and made readily available.
Article 70
Customs valuation
Article 71
Customs cooperation
The Parties shall strengthen cooperation in the area of customs to ensure implementation of the objectives of this Chapter in order to further trade facilitation, while ensuring effective control, security and prevention of fraud. To that end the Parties may use, where appropriate, the European Commission Customs Blueprint as a benchmarking tool.
In order to ensure compliance with the provisions of this Chapter the Parties shall, inter alia:
exchange information concerning customs legislation and procedures;
develop joint initiatives relating to import, export and transit procedures, as well as work towards ensuring that an effective service is provided to the business community;
cooperate on the automation of customs and other trade procedures;
exchange, where appropriate, information and data subject to respect of the confidentiality of sensitive data and the protection of personal data;
cooperate in preventing and combating illicit cross-border traffic in goods, including in tobacco products;
exchange information or enter into consultations with a view to establishing where possible, common positions in international organisations in the field of customs such as the WTO, the WCO, the UN, the United Nations Conference on Trade And Development (UNCTAD) and the UN-ECE;
cooperate in the planning and delivery of technical assistance, notably to facilitate customs and trade facilitation reforms in accordance with the relevant provisions of this Agreement;
exchange best practices in customs operations, in particular on risk based customs control systems and on intellectual property rights enforcement, especially in relation to counterfeited products;
promote coordination between all border authorities of the Parties to facilitate border crossing process and enhance control, taking into account joint border controls, where feasible and appropriate; and
establish, where relevant and appropriate, mutual recognition of trade partnership programmes and customs controls, including equivalent trade facilitation measures.
Article 72
Mutual administrative assistance in customs matters
Without prejudice to other forms of cooperation envisaged in this Agreement, in particular in Article 71 of this Agreement, the Parties shall provide mutual administrative assistance in customs matters in accordance with the provisions of Protocol II on Mutual Administrative Assistance in Customs Matters to this Agreement.
Article 73
Technical assistance and capacity building
The Parties shall cooperate with a view to providing technical assistance and capacity building for the implementation of trade facilitation and customs reforms.
Article 74
Customs Sub-Committee
The Customs Sub-Committee shall, inter alia:
see to the proper functioning of this Chapter and of Protocols I and II to this Agreement;
adopt practical arrangements, measures and decisions to implement this chapter and Protocols I and II to this Agreement, including on exchange of information and data, mutual recognition of customs controls and trade partnership programmes, and mutually agreed benefits;
exchange views on any points of common interest, including future measures and the resources needed for their implementation and application;
make recommendations where appropriate; and
adopt its internal rules of procedure.
Article 75
Approximation of customs legislation
Gradual approximation to the Union's customs law and certain international law shall be carried out as set out in Annex XIII to this Agreement.
CHAPTER 6
Establishment, trade in services and electronic commerce
Article 76
Objective, scope and coverage
Article 77
Definitions
For the purposes of this Chapter:
‘measure’ means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action or any other form;
‘measures adopted or maintained by a Party’ means measures taken by:
central, regional or local governments and authorities; and
non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities;
‘natural person of a Party’ means a national of a Member State of the EU or a national of Georgia in accordance with the respective legislation;
‘juridical person’ means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
‘juridical person of a Party’ means a juridical person as defined in point (d) and set up in accordance with the law of a Member State of the EU or of Georgia respectively, and having its registered office, central administration, or principal place of business in the territory ( 4 ) to which the Treaty on the Functioning of the European Union applies or in the territory ►C1 of Georgia, respectively; ◄
Should that juridical person have only its registered office or central administration in the territory to which the Treaty on the Functioning of the European Union applies or in the territory of Georgia respectively, it shall not be considered as a juridical person of the Union or a juridical person of Georgia respectively, unless its operations possess a real and continuous link with the economy of the Union or of Georgia, respectively;
Notwithstanding the preceding subparagraph, shipping companies established outside the Union or Georgia and controlled by nationals of a Member State of the EU or of Georgia, respectively, shall also be beneficiaries under this Agreement, if their vessels are registered in accordance with their respective legislation, in that Member State or in Georgia and fly the flag of a Member State or of Georgia;
‘subsidiary’ of a juridical person of a Party means a juridical person which is owned or effectively controlled by that juridical person ( 5 );
‘branch’ of a juridical person means a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management structure and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will, if necessary, be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension;
‘establishment’ means:
as regards juridical persons of the Union or of Georgia, the right to take up and pursue economic activities by means of setting up, including the acquisition of, a juridical person and/or create a branch or a representative office in Georgia or in the Union respectively;
as regards natural persons, the right of natural persons of the Union or of Georgia to take up and pursue economic activities as self-employed persons, and to set up undertakings, in particular companies, which they effectively control.
‘economic activities’ shall include activities of an industrial, commercial and professional character and activities of craftsmen and do not include activities performed in the exercise of governmental authority;
‘operations’ shall mean the pursuit of economic activities;
‘services’ includes any service in any sector except services supplied in the exercise of governmental authority;
‘services and other activities performed in the exercise of governmental authority’ are services or activities which are performed neither on a commercial basis nor in competition with one or more economic operators;
‘cross-border supply of services’ means the supply of a service:
from the territory of a Party into the territory of the other Party (Mode 1), or
in the territory of a Party to the service consumer of the other Party (Mode 2);
‘service supplier’ of a Party means any natural or juridical person of a Party that seeks to supply or supplies a service;
‘entrepreneur’ means any natural or juridical person of a Party that seeks to perform or performs an economic activity through setting up an establishment.
Article 78
Scope
This Section applies to measures adopted or maintained by the Parties affecting establishment in all economic activities with the exception of:
mining, manufacturing and processing ( 6 ) of nuclear materials;
production of or trade in arms, munitions and war matèriel;
audio-visual services;
national maritime cabotage ( 7 ), and
domestic and international air transport services ( 8 ), whether scheduled or non-scheduled, and services directly related to the exercise of traffic rights, other than:
aircraft repair and maintenance services during which an aircraft is withdrawn from service;
the selling and marketing of air transport services;
computer reservation system (CRS) services;
ground-handling services;
airport operation services.
Article 79
National treatment and most favoured nation treatment
Subject to the reservations listed in Annex XIV-E to this Agreement, Georgia shall grant, upon entry into force of this Agreement:
as regards the establishment of subsidiaries, branches and representative offices of juridical persons of the Union: treatment no less favourable than that accorded to its own juridical persons, their branches and representative offices; or to subsidiaries, branches and representative offices of any third country's juridical persons, whichever is the better;
as regards the operation of subsidiaries, branches and representative offices of juridical persons of the Union in Georgia, once established: treatment no less favourable than that accorded to its own juridical persons, their branches and representative offices; or to subsidiaries, branches and representative offices of any third country's juridical persons, whichever is the better ( 9 ).
Subject to reservations listed in Annex XIV-A to this Agreement, the Union shall grant, upon entry into force of this Agreement:
as regards the establishment of subsidiaries, branches and representative offices of juridical persons of Georgia: treatment no less favourable than that accorded to its own juridical persons, their branches and representative offices; or to subsidiaries, branches and representative offices of any third country's juridical persons, whichever is the better;
as regards the operation of subsidiaries, branches and representative offices of juridical persons of Georgia in the Union, once established: treatment no less favourable than that accorded to its own juridical persons, their branches and representative offices; or to subsidiaries, branches and representative offices of any third country's juridical persons, whichever is the better ( 10 ).
Article 80
Review
Article 81
Other agreements
This Chapter shall not affect the rights of entrepreneurs of the Parties arising from any existing or future international agreement relating to investment, to which a Member State of the EU and Georgia are parties.
Article 82
Standard of treatment for branches and representative offices
Article 83
Scope
This Section applies to measures of the Parties affecting the cross border supply of all services sectors with the exception of:
audio-visual services;
national maritime cabotage ( 11 ), and
domestic and international air transport services ( 12 ), whether scheduled or non-scheduled, and services directly related to the exercise of traffic rights other than:
aircraft repair and maintenance services during which an aircraft is withdrawn from service;
the selling and marketing of air transport services;
computer reservation system (CRS) services;
ground-handling services;
airport operation services.
Article 84
Market access
In sectors where market access commitments are undertaken, the measures which a Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in Annexes XIV-B and XIV-F to this Agreement are defined as:
limitations on the number of services suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;
limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test, or
limitations on the total number of service operations or on the total quantity of service output expressed in the terms of designated numerical units in the form of quotas or the requirement of an economic needs test.
Article 85
National treatment
Article 86
Lists of commitments
The sectors liberalised by each Party pursuant to this Section and, by means of reservations, the market access and national treatment limitations applicable to services and services suppliers of the other Party in those sectors are set out in lists of commitments included in Annexes XIV-B and XIV-F to this Agreement.
Article 87
Review
With a view to the progressive liberalisation of the cross-border supply of services between the Parties, the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, shall regularly review the list of commitments referred to in Article 86 of this Agreement. This review shall take into account the process of gradual approximation, referred to in Articles 103, 113, 122 and 126 of this Agreement, and its impact on the elimination of remaining obstacles to cross-border supply of services between the Parties.
Article 88
Scope and definitions
For the purposes of this Section:
‘key personnel’ means natural persons employed within a juridical person of one Party other than a non-profit organisation ( 13 ) and who are responsible for the setting-up or the proper control, administration and operation of an establishment. ‘Key personnel’ comprise ‘business visitors’ for establishment purposes and ‘intra-corporate transferees’:
‘business visitors’ for establishment purposes means natural persons working in a senior position who are responsible for setting up an establishment. They do not offer or provide services or engage in any other economic activity than required for establishment purposes. They do not receive remuneration from a source located within the host Party;
‘intra-corporate transferees’ means natural persons who have been employed by a juridical person or have been partners in it for at least one year and who are temporarily transferred to an establishment that may be a subsidiary, branch or head company of the enterprise / juridical person in the territory of the other Party. The natural person concerned must belong to one of the following categories:
managers: persons working in a senior position within a juridical person, who primarily direct the management of the establishment, receiving general supervision or direction principally from the board of directors or from stockholders of the business or their equivalent, including at least:
specialists: persons working within a juridical person who possess uncommon knowledge essential to the establishment's production, research equipment, techniques, processes, procedures or management. In assessing such knowledge, account will be taken not only of knowledge specific to the establishment, but also of whether the person has a high level of qualification referring to a type of work or trade requiring specific technical knowledge, including membership of an accredited profession.
‘graduate trainees’ means natural persons who have been employed by a juridical person of one Party or its branch for at least one year, possess a university degree and are temporarily transferred to an establishment of the juridical person in the territory of the other Party, for career development purposes or to obtain training in business techniques or methods ( 14 );
‘business sellers’ ( 15 ) means natural persons who are representatives of a services or goods supplier of one Party seeking entry and temporary stay in the territory of the other Party for the purpose of negotiating the sale of services or goods, or entering into agreements to sell services or goods for that supplier. They do not engage in making direct sales to the general public and do not receive remuneration from a source located within the host Party, nor are they commission agents;
‘contractual services suppliers’ means natural persons employed by a juridical person of one Party which itself is not an agency for placement and supply services of personnel nor acting through such an agency, has no establishment in the territory of the other Party and has concluded a bona fide contract to supply services with a final consumer in the latter Party, requiring the presence on a temporary basis of its employees in that Party, in order to fulfil the contract to provide services;
‘independent professionals’ means natural persons engaged in the supply of a service and established as self-employed in the territory of a Party who have no establishment in the territory of the other Party and who have concluded a bona fide contract (other than through an agency for placement and supply services of personnel) to supply services with a final consumer in the latter Party, requiring their presence on a temporary basis in that Party in order to fulfil the contract to provide services;
‘qualifications’ means diplomas, certificates and other evidence (of formal qualification) issued by an authority designated pursuant to legislative, regulatory or administrative provisions and certifying successful completion of professional training.
Article 89
Key personnel and graduate trainees
Article 90
Business sellers
For every sector committed in accordance with Section 2 (Establishment) or Section 3 (Cross-border supply of services) of this Chapter and subject to any reservations listed in Annexes XIV-A, XIV-E, and XIV-B and XIV-F to this Agreement, each Party shall allow the entry and temporary stay of business sellers for a period of no longer than 90 days in any 12-month period.
Article 91
Contractual service suppliers
The commitments undertaken by the Parties are subject to the following conditions:
the natural persons must be engaged in the supply of a service on a temporary basis as employees of a juridical person, which has obtained a service contract not exceeding 12 months;
the natural persons entering the other Party should be offering such services as employees of the juridical person supplying the services for at least the year immediately preceding the date of submission of an application for entry into the other Party. In addition, the natural persons must possess, at the date of submission of an application for entry into the other Party, at least three years professional experience ( 16 ) in the sector of activity which is the subject of the contract;
the natural persons entering the other Party must possess:
a university degree or a qualification demonstrating knowledge of an equivalent level ( 17 ); and
professional qualifications where this is required to exercise an activity pursuant to the laws, regulations or legal requirements of the Party where the service is supplied;
the natural person shall not receive remuneration for the provision of services in the territory of the other Party other than the remuneration paid by the juridical person employing the natural person;
the entry and temporary stay of natural persons within the Party concerned shall be for a cumulative period of not more than six months or, in the case of Luxembourg, 25 weeks in any 12-month period or for the duration of the contract, whichever is less;
access accorded under the provisions of this Article relates only to the service activity which is the subject of the contract and does not confer entitlement to exercise the professional title of the Party where the service is supplied;
the number of persons covered by the service contract shall not be larger than necessary to fulfil the contract, as it may be requested by the laws, regulations or other legal requirements of the Party where the service is supplied.
Article 92
Independent professionals
The commitments undertaken by the Parties are subject to the following conditions:
the natural persons must be engaged in the supply of a service on a temporary basis as self-employed persons established in the other Party and must have obtained a service contract for a period not exceeding 12 months;
the natural persons entering the other Party must possess, at the date of submission of an application for entry into the other Party, at least six years professional experience in the sector of activity which is the subject of the contract;
the natural persons entering the other Party must possess:
a university degree or a qualification demonstrating knowledge of an equivalent level ( 18 ) and
professional qualifications where this is required to exercise an activity pursuant to the laws, regulations or other legal requirements of the Party where the service is supplied;
the entry and temporary stay of natural persons within the Party concerned shall be for a cumulative period of not more than six months or, in the case of Luxembourg, 25 weeks in any 12-month period or for the duration of the contract, whichever is less;
access accorded under the provisions of this Article relates only to the service activity which is the subject of the contract and does not confer entitlement to exercise the professional title of the Party where the service is provided.
Article 93
Scope and definitions
The following disciplines apply to measures by the Parties relating to licencing requirements and procedures, qualification requirements and procedures that affect:
cross-border supply of services;
establishment in their territory of juridical and natural persons defined in Article 77(9) of this Agreement, and
temporary stay in their territory of categories of natural persons as defined in points (a) to (e) of Article 88(2) of this Agreement.
For the purposes of this Section:
‘licencing requirements’ means substantive requirements, other than qualification requirements, with which a natural or a juridical person is required to comply in order to obtain, amend or renew authorisation to carry out the activities as defined in points (a) to (c) of paragraph 1;
‘licencing procedures’ means administrative or procedural rules that a natural or a juridical person, seeking authorisation to carry out the activities as defined in points (a) to (c) of paragraph 1, including the amendment or renewal of a licence, must adhere to in order to demonstrate compliance with licencing requirements;
‘qualification requirements’ means substantive requirements relating to the competence of a natural person to supply a service, and which are required to be demonstrated for the purpose of obtaining authorisation to supply a service;
‘qualification procedures’ means administrative or procedural rules that a natural person must adhere to in order to demonstrate compliance with qualification requirements, for the purpose of obtaining authorisation to supply a service;
‘competent authority’ means any central, regional or local government and authority or non-governmental body in the exercise of powers delegated by central or regional or local governments or authorities, which takes a decision concerning the authorisation to supply a service, including through establishment or concerning the authorisation to establish in an economic activity other than services.
Article 94
Conditions for licencing and qualification
The criteria referred to in paragraph 1 shall be:
proportionate to a public policy objective;
clear and unambiguous;
objective;
pre-established;
made public in advance;
transparent and accessible.
Article 95
Licencing and qualification procedures
Article 96
Mutual recognition
On receipt of a recommendation referred to in paragraph 2, the Association Committee in Trade configuration shall, within a reasonable time, review that recommendation with a view to determine whether it is consistent with this Agreement, and on the basis of the information contained therein, assess in particular:
the extent to which the standards and criteria applied by each Party for the authorisation, licenses, operation and certification of services providers and entrepreneurs are converging, and
the potential economic value of a mutual recognition agreement.
Article 97
Transparency and disclosure of confidential information
Article 98
Understanding on computer services
CPC ( 20 ) 84, the UN code used for describing computer and related services, covers the basic functions used to provide all computer and related services:
computer programmes defined as the sets of instructions required to make computers work and communicate (including their development and implementation);
data processing and storage, and
related services, such as consultancy and training services for staff of clients.
Technological developments have led to the increased offering of those services as a bundle or package of related services that can include some or all of those basic functions. For example, services such as web- or domain-hosting, data mining services and grid computing each consist of a combination of basic computer services functions.
Computer and related services, regardless of whether they are delivered via a network, including the internet, include all services that provide:
consulting, strategy, analysis, planning, specification, design, development, installation, implementation, integration, testing, debugging, updating, support, technical assistance, or management of or for computers or computer systems;
computer programmes defined as sets of instructions required to make computers work and communicate (in and of themselves), plus consulting, strategy, analysis, planning, specification, design, development, installation, implementation, integration, testing, debugging, updating, adaptation, maintenance, support, technical assistance, management or use of or for computer programs; or
data processing, data storage, data hosting or database services; or maintenance and repair services for office machinery and equipment, including computers; or training services for staff of clients, related to computer programmes, computers or computer systems, and not elsewhere classified.
Article 99
Scope and definitions
For the purpose of this Sub-Section and of Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter:
‘licence’ means an authorisation, granted to an individual supplier by a regulatory authority, which is required before supplying a given service;
‘universal service’ means the permanent provision of a postal service of specified quality at all points in the territory of a Party at affordable prices for all users.
Article 100
Universal service
Each Party has the right to define the kind of universal service obligation it wishes to maintain. Such obligations will not be regarded as anti-competitive per se, provided they are administered in a transparent, non-discriminatory and competitively neutral manner and are not more burdensome than necessary for the kind of universal service defined by the Party.
Article 101
Licences
Where a licence is required, the following shall be made publicly available:
all the licensing criteria and the period of time normally required to reach a decision concerning an application for a licence; and
the terms and conditions of licences.
Article 102
Independence of the regulatory body
The regulatory body shall be legally separate from, and not accountable to any supplier of postal and courier services. The decisions of and the procedures used by the regulatory body shall be impartial with respect to all market participants.
Article 103
Gradual approximation
With a view to considering further liberalisation of trade in services, the Parties recognise the importance of the gradual approximation of the existing and future legislation of Georgia to the list of the Union acquis included in Annex XV-C to this Agreement.
Article 104
Scope and definitions
For the purpose of this Sub-Section and Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter:
‘electronic communication services’ means all services which consist wholly or mainly in the conveyance of signals on electronic communication networks, including telecommunication services and transmission services in networks used for broadcasting. Those services exclude services providing, or exercising editorial control over, content transmitted using electronic communication networks and services;
‘public communication network’ means an electronic communication network used wholly or mainly for the provision of publicly available electronic communication services;
‘electronic communication network’ means transmission systems and, where applicable, switching or routing equipment and other resources which permit the conveyance of signals by wire, by radio, by optical or by other electromagnetic means, including satellite networks, fixed (circuit- and packet-switched, including internet) and mobile terrestrial networks, electricity cable systems, to the extent that they are used for the purpose of transmitting signals, networks used for radio and television broadcasting, and cable television networks, irrespective of the type of information conveyed;
a ‘regulatory authority’ in the electronic communication sector means the body or bodies charged with the regulation of electronic communication mentioned in this Sub-Section;
a services supplier shall be deemed to have ‘significant market power’ if, either individually or jointly with others, it enjoys a position equivalent to dominance, that is to say a position of economic strength affording it the power to behave to an appreciable extent independently of competitors, customers and ultimately consumers;
‘interconnection’ means the physical and logical linking of public communication networks used by the same or a different supplier in order to allow the users of one services supplier to communicate with users of the same or another services supplier, or to access services provided by another services supplier. Services may be provided by the parties involved or other parties who have access to the network. Interconnection is a specific type of access implemented between public network operators;
‘universal service’ means the set of services of specified quality that is made available to all users in the territory of a Party regardless of their geographical location and at an affordable price; its scope and implementation are decided by each Party;
‘access’ means the making available of facilities and/or services, to another services supplier, under defined conditions, on either an exclusive or non-exclusive basis, for the purpose of providing electronic communication services. It covers, inter alia, access to network elements and associated facilities, which may involve the connection of equipment, by fixed or non-fixed means (in particular this includes access to the local loop and to facilities and services necessary to provide services over the local loop), access to physical infrastructure, including buildings, ducts, and masts; access to relevant software systems, including operational support systems; access to numbering translation or systems offering equivalent functionality; access to fixed and mobile networks, in particular for roaming; access to conditional access systems for digital televisions services; access to virtual network services;
‘end-user’ means a user not providing public communication networks or publicly available electronic communication services;
‘local loop’ means the physical circuit connecting the network termination point at the subscriber's premises to the main distribution frame or equivalent facility in the fixed public communication network.
Article 105
Regulatory authority
Article 106
Authorisation to provide electronic communication services
Each Party shall ensure that where a licence is required:
all the licensing criteria and a reasonable period of time normally required to reach a decision concerning an application for a licence shall be made publicly available;
the reasons for the denial of a licence shall be made known in writing to the applicant upon request;
the applicant of a licence shall be able to seek recourse before an appeal body in case that a licence is unduly denied;
licence fees ( 21 ) required by any Party for granting a licence shall not exceed the administrative costs normally incurred in the management, control and enforcement of the applicable licences. Licence fees for the use of radio spectrum and numbering resources are not subject to the requirements of this paragraph.
Article 107
Access and interconnection
Each Party shall ensure that upon the finding in accordance with Article 105 of this Agreement that a relevant market is not effectively competitive, the regulatory authority shall have the power to impose on the supplier designated as having significant market power one or more of the following obligations in relation to interconnection and/or access:
obligation on non-discrimination to ensure that the operator applies equivalent conditions in equivalent circumstances to other suppliers providing equivalent services, and provides services and information to others under the same conditions and of the same quality as it provides for its own services, or those of its subsidiaries or partners;
obligation of a vertically integrated company to make transparent its wholesale prices and its internal transfer prices, where there is a requirement for non-discrimination or for prevention of unfair cross-subsidy. The regulatory authority may specify the format and accounting methodology to be used;
obligations to meet reasonable requests for access to, and use of, specific network elements and associated facilities, including unbundled access to the local loop, inter alia, in situations where the regulatory authority considers that denial of access or unreasonable terms and conditions having a similar effect would hinder the emergence of a sustainable competitive market at the retail level, or would not be in the end user's interest.
Regulatory authorities may attach conditions covering fairness, reasonableness and timeliness to the obligations included under this point;
to provide specified services on a wholesale basis for resale by third parties; to grant open access to technical interfaces, protocols or other key technologies that are indispensable for the interoperability of services or virtual network services; to provide co-location or other forms of facility sharing, including duct, building or mast sharing; to provide specified services needed to ensure interoperability of end-to-end services to users, including facilities for intelligent network services; to provide access to operational support systems or similar software systems necessary to ensure fair competition in the provision of services; to interconnect networks or network facilities.
Regulatory authorities may attach conditions covering fairness, reasonableness and timeliness to the obligations included under this point;
obligations relating to cost recovery and price controls, including obligations for cost orientation of prices and obligations concerning cost accounting systems, for the provision of specific types of interconnection and/or access, in situations where a market analysis indicates that a lack of effective competition means that the operator concerned might sustain prices at an excessively high level, or apply a price squeeze, to the detriment of end-users.
Regulatory authorities shall take into account the investment made by the operator and allow the operator a reasonable rate of return on adequate capital employed, taking into account the risks involved;
to publish the specific obligations imposed on services suppliers by the regulatory authority identifying the specific product/service and geographical markets. Up-to-date information, provided that it is not confidential and it does not comprise business secrets is made publicly available in a manner that guarantees all interested parties easy access to that information;
obligations for transparency requiring operators to make public specified information and, in particular, where an operator has obligations of non-discrimination, the regulator may require that operator to publish a reference offer, which shall be sufficiently unbundled to ensure that services suppliers are not required to pay for facilities which are not necessary for the service requested, giving a description of the relevant offerings broken down into components according to market needs, and the associated terms and conditions including prices.
Article 108
Scarce resources
Article 109
Universal service
Article 110
Cross-border provision of electronic communication services
Neither Party may require a service supplier of the other Party to set up an establishment, to establish any form of presence, or to be resident, in its territory as a condition for the cross-border supply of a service.
Article 111
Confidentiality of information
Each Party shall ensure the confidentiality of electronic communications and related traffic data by means of a public communication network and publicly available electronic communication services without restricting trade in services.
Article 112
Disputes between services suppliers
Article 113
Gradual approximation
With a view to considering further liberalisation of trade in services, the Parties recognise the importance of the gradual approximation of the existing and future legislation of Georgia to the list of the Union acquis included in the Annex XV-B to this Agreement.
Article 114
Scope and definitions
For the purpose of this Sub-Section and of Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter:
‘financial service’ means any service of a financial nature offered by a financial service supplier of a Party. Financial services comprise the following activities:
insurance and insurance-related services:
direct insurance (including co-insurance):
life;
non-life;
reinsurance and retrocession;
insurance inter-mediation, such as brokerage and agency; and
services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services;
banking and other financial services (excluding insurance):
acceptance of deposits and other repayable funds from the public;
lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction;
financial leasing;
all payment and money transmission services, including credit, charge and debit cards, travellers cheques and bankers drafts;
guarantees and commitments;
trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:
money market instruments (including cheques, bills, certificates of deposits);
foreign exchange;
derivative products including, but not limited to, futures and options;
exchange rate and interest rate instruments, including products such as swaps, forward rate agreements;
transferable securities;
other negotiable instruments and financial assets, including bullion;
participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;
money broking;
asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services;
settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments;
provision and transfer of financial information, and financial data processing and related software;
advisory, intermediation and other auxiliary financial services on all the activities listed in points (1) through (11), including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy;
‘financial service supplier’ means any natural or juridical person of a Party that seeks to provide or provides financial services. The term ‘financial service supplier’ does not include a public entity;
‘public entity’ means:
a government, a central bank or a monetary authority, of a Party, or an entity owned or controlled by a Party, that is principally engaged in carrying out governmental functions or activities for governmental purposes, not including an entity principally engaged in supplying financial services on commercial terms; or
a private entity, performing functions normally performed by a central bank or monetary authority, when exercising those functions;
‘new financial service’ means a service of a financial nature, including services related to existing and new products or the manner in which a product is delivered, that is not supplied by any financial service supplier in the territory of a Party but which is supplied in the territory of the other Party.
Article 115
Prudential carve-out
Each Party may adopt or maintain measures for prudential reasons, such as:
the protection of investors, depositors, policy-holders or persons to whom a fiduciary duty is owed by a financial service supplier;
ensuring the integrity and stability of a Party's financial system.
Article 116
Effective and transparent regulation
Each Party shall make its best endeavours to provide in advance to all interested persons any measure of general application that the Party proposes to adopt in order to allow an opportunity for such persons to comment on the measure. Such measure shall be provided:
by means of an official publication; or
in other written or electronic form.
On the request of an applicant, the concerned Party shall inform the applicant of the status of its application. If the concerned Party requires additional information from the applicant, it shall notify the applicant without undue delay.
The Parties also take note of the ‘Ten Key Principles for Information Exchange’ promulgated by the G7 Finance Ministers, and will take all steps necessary to try to apply them in their bilateral contacts.
Article 117
New financial services
Each Party shall permit a financial service supplier of the other Party to provide any new financial service of a type similar to those services that the Party would permit its own financial service suppliers to provide under its domestic law in like circumstances. A Party may determine the juridical form through which the service may be provided and may require authorisation for the provision of the service. Where such authorisation is required, a decision shall be made within a reasonable time and the authorisation may only be refused for prudential reasons.
Article 118
Data processing
Article 119
Specific exceptions
Article 120
Self-regulatory organisations
When a Party requires membership or participation in, or access to, any self-regulatory body, securities or futures exchange or market, clearing agency, or any other organization or association, in order for financial service suppliers of the other Party to supply financial services on an equal basis with financial service suppliers of the Party, or when the Party provides directly or indirectly such entities, privileges or advantages in supplying financial services, the Party shall ensure observance of the obligations of Articles 79 and 85 of this Agreement.
Article 121
Clearing and payment systems
Under the terms and conditions that accord national treatment, each Party shall grant to financial service suppliers of the other Party established in its territory access to payment and clearing systems operated by public entities, and to official funding and refinancing facilities available in the normal course of ordinary business. This Article is not intended to confer access to the Party's lender of last resort facilities.
Article 122
Gradual approximation
With a view to considering further liberalisation of trade in services, the Parties recognise the importance of the gradual approximation of the existing and future legislation of Georgia to the international best practices standards listed under Article 116(3) of this Agreement as well as to the list of the Union acquis included in Annex XV-A to this Agreement.
Article 123
Scope
This Sub-Section sets out the principles regarding the liberalisation of international transport services pursuant to Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter.
Article 124
International maritime transport
For the purpose of this Sub-Section and Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter:
‘international maritime transport’ includes door-to-door and multi-modal transport operations, which is the carriage of goods using more than one mode of transport, involving a sea-leg, under a single transport document, and to this effect the right to directly contract with providers of other modes of transport;
‘maritime cargo handling services’ means activities exercised by stevedore companies, including terminal operators, but not including direct activities of dockers, when this workforce is organised independently of the stevedoring or terminal operator companies. The activities covered include the organisation and supervision of:
the loading/discharging of cargo to/from a ship;
the lashing/unlashing of cargo;
the reception/delivery and safekeeping of cargoes before shipment or after discharge;
‘customs clearance services’ (alternatively ‘customs house brokers' services’) means activities consisting in carrying out on behalf of another Party customs formalities concerning import, export or through transport of cargoes, whether this service is the main activity of that service provider or a usual complement of the service provider's main activity;
‘container station and depot services’ means activities consisting in storing containers, whether in port areas or inland, with a view to their stuffing/stripping, repairing and making them available for shipments;
‘maritime agency services’ means activities consisting in representing, within a given geographic area, as an agent the business interests of one or more shipping lines or shipping companies, for the following purposes:
marketing and sales of maritime transport and related services, from quotation to invoicing, and issuance of bills of lading on behalf of the companies, acquisition and resale of the necessary related services, preparation of documentation, and provision of business information;
acting on behalf of the companies organising the call of the ship or taking over cargoes when required;
‘freight forwarding services’ means the activity consisting of organising and monitoring shipment operations on behalf of shippers, through the acquisition of transport and related services, preparation of documentation and provision of business information;
‘feeder services’ means the pre- and onward transportation of international cargoes by sea, notably containerised, between ports located in a Party.
In view of the existing levels of liberalisation between the Parties in international maritime transport:
each Party shall apply effectively the principle of unrestricted access to the international maritime markets and trades on a commercial and non-discriminatory basis;
each Party shall grant to ships flying the flag of the other Party or operated by service suppliers of the other Party treatment no less favourable than that accorded to its own ships or those of any third country, whichever are the better, with regard to, inter alia, access to ports, the use of infrastructure and services of ports, and the use of maritime auxiliary services, as well as related fees and charges, customs facilities and the assignment of berths and facilities for loading and unloading.
In applying these principles, each Party shall:
not introduce cargo-sharing arrangements in future agreements with third countries concerning maritime transport services, including dry and liquid bulk and liner trade, and terminate, within a reasonable period of time, such cargo-sharing arrangements in case they exist in previous agreements; and
upon the entry into force of this Agreement, abolish and abstain from introducing any unilateral measures and administrative, technical and other obstacles which could constitute a disguised restriction or have discriminatory effects on the free supply of services in international maritime transport.
Article 125
Air transport
The progressive liberalisation of air transport between the Parties adapted to their reciprocal commercial needs and the conditions of mutual market access are governed by the Common Aviation Area Agreement between the European Union and its Member States, of the one part, and Georgia, of the other part.
Article 126
Gradual approximation
With a view to considering further liberalisation of trade in services, the Parties recognise the importance of the gradual approximation of the existing and future legislation of Georgia to the list of Union acquis included in Annex XV-D to this Agreement.
Article 127
Objective and principles
Article 128
Cooperation in electronic commerce
The Parties shall maintain a dialogue on regulatory issues raised by electronic commerce, which will inter alia address the following issues:
the recognition of certificates of electronic signatures issued to the public and the facilitation of cross-border certification services;
the liability of intermediary service providers with respect to the transmission, or storage of information;
the treatment of unsolicited electronic commercial communications;
the protection of consumers in the ambit of electronic commerce, and
any other issue relevant for the development of electronic commerce.
Article 129
Use of intermediaries' services
Article 130
Liability of intermediary service providers: ‘mere conduit’
Where an information society service is provided that consists of the transmission in a communication network of information provided by a recipient of the service, or the provision of access to a communication network, each Party shall ensure that the service provider is not liable for the information transmitted, on condition that the provider:
does not initiate the transmission;
does not select the receiver of the transmission; and
does not select or modify the information contained in the transmission.
Article 131
Liability of intermediary service providers: ‘caching’
Where an information society service is provided that consists of the transmission in a communication network of information provided by a recipient of the service, each Party shall ensure that the service provider is not liable for the automatic, intermediate and temporary storage of that information, performed for the sole purpose of making more efficient the information's onward transmission to other recipients of the service upon their request, on condition that:
the provider does not modify the information;
the provider complies with conditions on access to the information;
the provider complies with rules regarding the updating of the information, specified in a manner widely recognised and used by industry;
the provider does not interfere with the lawful use of technology, widely recognised and used by industry, to obtain data on the use of the information, and
the provider acts expeditiously to remove or to disable access to the information it has stored upon obtaining actual knowledge ( 23 ) of the fact that the information at the initial source of the transmission has been removed from the network, or access to it has been disabled, or that a court or an administrative authority has ordered such removal or disablement.
Article 132
Liability of intermediary service providers: ‘hosting’
Where an information society service is provided that consists of the storage of information provided by a recipient of the service, each Party shall ensure that the service provider is not liable for the information stored at the request of a recipient of the service, on condition that:
the provider does not have actual knowledge of illegal activity or information and, as regards claims for damages, is not aware of facts or circumstances from which the illegal activity or information is apparent, or
the provider, upon obtaining such knowledge or awareness, acts expeditiously to remove or to disable access to the information.
Article 133
No general obligation to monitor
Article 134
General exceptions
Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on establishment or cross-border supply of services, nothing in this Chapter shall be construed to prevent the adoption or enforcement by any Party of measures:
necessary to protect public security or public morals or to maintain public order;
necessary to protect human, animal or plant life or health;
relating to the conservation of exhaustible natural resources if such measures are applied in conjunction with restrictions on domestic entrepreneurs or on the domestic supply or consumption of services;
necessary for the protection of national treasures of artistic, historic or archaeological value;
necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Chapter, including those relating to:
the prevention of deceptive and fraudulent practices or to deal with the effects of a default on contracts;
the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts;
safety;
inconsistent with Articles 79 and 85 of this Agreement, provided that the difference in treatment is aimed at ensuring the effective or equitable imposition or collection of direct taxes in respect of economic activities, entrepreneurs or services suppliers of the other Party ( 24 ).
Article 135
Taxation measures
The most-favoured-nation treatment granted in accordance with the provisions of this Chapter shall not apply to the tax treatment that Parties are providing or will provide in future on the basis of agreements between the Parties designed to avoid double taxation.
Article 136
Security exceptions
Nothing in this Agreement shall be construed:
to require any Party to furnish any information, the disclosure of which it considers contrary to its essential security interests;
to prevent any Party from taking any action which it considers necessary for the protection of its essential security interests:
connected with the production of or trade in arms, munitions or war matèriel;
relating to economic activities carried out directly or indirectly for the purpose of provisioning a military establishment;
relating to fissionable and fusionable materials or the materials from which they are derived; or
taken in time of war or other emergency in international relations; or
to prevent any Party from taking any action in pursuance of obligations it has accepted for the purpose of maintaining international peace and security.
CHAPTER 7
Current payments and movement of capital
Article 137
Current payments
The Parties undertake to impose no restrictions and shall allow, in freely convertible currency, in accordance with the provisions of Article VIII of the Agreement of the International Monetary Fund, any payments and transfers on the current account of balance of payments between the Parties.
Article 138
Capital movements
With regard to transactions on the capital and financial account of balance of payments other than the transactions listed in paragraph 1 of this Article, from the entry into force of this Agreement, each Party shall ensure without prejudice to other provisions of this Agreement:
the free movement of capital relating to credits for commercial transactions or for the provision of services in which a resident of one of the Parties is participating;
the free movement of capital relating to portfolio investments, financial loans and credits by the investors of the other Party.
Article 139
Safeguard measures
Where, in exceptional circumstances, payments or movements of capital cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy, including serious balance of payments difficulties, in one or more Member States or in Georgia, the Parties concerned may take safeguard measures for a period not exceeding six months if such measures are strictly necessary. The Party adopting the safeguard measure shall inform the other Party forthwith of the adoption of any safeguard measure and, as soon as possible, of a time schedule for its removal.
Article 140
Facilitation and evolution provisions
CHAPTER 8
Public procurement
Article 141
Objectives
Article 142
Scope
Article 143
Institutional background
Georgia shall designate in particular:
an executive body at central government level tasked with guaranteeing a coherent policy and its implementation in all areas related to public procurement. That body shall facilitate and coordinate the implementation of this Chapter and guide the process of gradual approximation to the Union acquis, as set out in Annex XVI-B to this Agreement;
an impartial and independent body tasked with the review of decisions taken by contracting authorities or entities during the award of contracts. In this context, ‘independent’ means that that body shall be a public authority which is separate from all contracting entities and economic operators. There shall be a possibility to subject the decisions taken by this body to judicial review.
Article 144
Basic standards regulating the award of contracts
Publication
Each Party shall ensure that all intended procurements are published in an appropriate media ( 26 ) in a manner that is sufficient:
to enable the market to be opened up to competition; and
to allow any interested economic operator to have appropriate access to information regarding the intended procurement prior to the award of the contract and to express its interest in obtaining the contract.
Award of contracts
Notwithstanding the above, in cases where it is justified by the specific circumstances of the contract, the successful applicant may be required to establish certain business infrastructure at the place of performance.
Contracting entities may invite a limited number of applicants to submit an offer, provided that:
this is done in a transparent and non-discriminatory manner; and
the selection is based only on objective factors such as the experience of the applicants in the sector concerned, the size and infrastructure of their businesses or their technical and professional abilities.
In inviting a limited number of applicants to submit an offer, account shall be taken of the need to ensure adequate competition.
Judicial protection
Article 145
Planning of gradual approximation
Article 146
Gradual approximation
Article 147
Market access
In so far as a Party has, in accordance with Annex XVI-B to this Agreement, opened its procurement market to the other Party:
the Union shall grant access to contract award procedures to Georgian companies, whether established or not in the Union, pursuant to the Union public procurement rules under treatment no less favourable than that accorded to Union companies;
Georgia shall grant access to contract award procedures for Union companies, whether established or not in Georgia, pursuant to national procurement rules under treatment no less favourable than that accorded to Georgian companies.
Article 148
Information
Article 149
Cooperation
CHAPTER 9
Intellectual property rights
Article 150
Objectives
The objectives of this Chapter are to:
facilitate the production and commercialisation of innovative and creative products between the Parties; and
achieve an adequate and effective level of protection and enforcement of intellectual property rights.
Article 151
Nature and scope of obligations
Article 152
Exhaustion
Each Party shall provide for a regime of domestic or regional exhaustion of intellectual property rights.
Article 153
Protection granted
The Parties reaffirm their commitment to:
the rights and obligations set out in the Berne Convention for the Protection of Literary and Artistic Works (Berne Convention);
the International Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations of 1961;
the TRIPS Agreement;
the WIPO Copyright Treaty;
the WIPO Performances and Phonograms Treaty.
Article 154
Authors
Each Party shall provide for authors the exclusive right to authorise or prohibit:
the direct or indirect, temporary or permanent reproduction by any means and in any form, in whole or in part of their works;
any form of distribution to the public by sale or otherwise of the original of their works or of copies thereof;
any communication to the public of their works, by wire or wireless means, including the making available to the public of their works in such a way that members of the public may access them from a place and at a time individually chosen by them.
Article 155
Performers
Each Party shall provide for performers the exclusive right to:
authorise or prohibit the fixation ( 27 ) of their performances;
authorise or prohibit the direct or indirect, temporary or permanent reproduction by any means and in any form, in whole or in part, of fixations of their performances;
make available to the public, by sale or otherwise, fixations of their performances;
authorise or prohibit the making available to the public, by wire or wireless means, in such a way that members of the public may access them from a place and at a time individually chosen by them, of fixations of their performances;
authorise or prohibit the broadcasting by wireless means and the communication to the public of their performances, except where the performance is itself already a broadcast performance or is made from a fixation.
Article 156
Producers of phonograms
Each Party shall provide for phonogram producers the exclusive right to:
authorise or prohibit the direct or indirect, temporary or permanent reproduction by any means and in any form, in whole or in part, of their phonograms;
make available to the public, by sale or otherwise, their phonograms, including copies thereof;
authorise or prohibit the making available of their phonograms to the public, by wire or wireless means, in such a way that members of the public may access them from a place and at a time individually chosen by them.
Article 157
Broadcasting organisations
Each Party shall provide for broadcasting organisations the exclusive right to authorise or prohibit:
the fixation of their broadcasts;
the reproduction of fixations of their broadcasts;
the making available to the public, by wire or wireless means, of fixations of their broadcasts; and
the rebroadcasting of their broadcasts by wireless means, as well as the communication to the public of their broadcasts if such communication is made in places accessible to the public against payment of an entrance fee.
Article 158
Broadcasting and communication to the public
Article 159
Term of protection
The rights of performers shall expire no less than 50 years after the date of the performance. However:
if a fixation of the performance otherwise than in a phonogram is lawfully published or lawfully communicated to the public within this period, the rights shall expire 50 years from the date of the first such publication or the first such communication to the public, whichever is the earlier,
if a fixation of the performance in a phonogram is lawfully published or lawfully communicated to the public within this period, the rights shall expire 70 years from the date of the first such publication or the first such communication to the public, whichever is the earlier.
The rights of producers of phonograms shall expire no less than 50 years after the fixation is made. However:
if a phonogram has been lawfully published within this period, the said rights shall expire no less than 70 years from the date of the first lawful publication. If no lawful publication has taken place within the period mentioned in the first sentence, and if the phonogram has been lawfully communicated to the public within this period, the said rights shall expire not less than 70 years from the date of the first lawful communication to the public;
if 50 years after a phonogram is lawfully published or communicated to the public, the phonogram producer does not offer copies of the phonogram for sale in sufficient quantity, or does not make it available to the public, the performer may terminate the contract by which he/she has transferred or assigned his/her rights in the fixation of his/her performance to a phonogram producer.
Article 160
Protection of technological measures
Each Party shall provide adequate legal protection against the manufacture, import, distribution, sale, rental, advertisement for sale or rental, or possession for commercial purposes of devices, products or components, or the provision of services which:
are promoted, advertised or marketed for the purpose of circumvention of any effective technological measures;
have only a limited commercially significant purpose or use other than to circumvent any effective technological measures, or
are primarily designed, produced, adapted or performed for the purpose of enabling or facilitation the circumvention of any effective technological measures.
Article 161
Protection of rights management information
Each Party shall provide adequate legal protection against any person performing without authority any of the following acts:
the removal or alteration of any electronic rights-management information, or
the distribution, importation for distribution, broadcasting, communication or making available to the public of works or other subject matter protected under this Agreement from which electronic rights-management information has been removed or altered without authority,
if such person knows, or has reasonable grounds to know, that by so doing he/she is inducing, enabling, facilitating or concealing an infringement of any copyright or any related rights as provided by domestic law.
Article 162
Exceptions and limitations
Each Party shall provide that temporary acts of reproduction referred to in Articles 155 to 158 of this Agreement, which are transient or incidental, which are an integral and essential part of a technological process and the sole purpose of which is to enable:
a transmission in a network between third parties by an intermediary, or
a lawful use
of a work or other protected subject matter to be made, and which have no independent economic significance, shall be exempted from the reproduction right provided for in Articles 155 to 158 of this Agreement.
Article 163
Artists' resale right in works of art
Article 164
Cooperation on collective management of rights
The Parties shall endeavour to promote dialogue and cooperation between their respective collective management societies for the purpose of promoting the availability of works and other protected subject matter and the transfer of royalties for the use of such works or other protected subject matter.
Article 165
International agreements
The Parties reaffirm their commitment to:
the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, and
the Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks.
Article 166
Registration procedure
Article 167
Well-known trademarks
Each Party shall give effect to Article 6bis of the Paris Convention and Article 16(2) and (3) of the TRIPS Agreement concerning the protection of well-known trademarks, and may take into consideration the Joint Recommendation Concerning Provisions on the Protection of Well-Known Marks adopted by the Assembly of the Paris Union for the Protection of Industrial Property and the General Assembly of the World Intellectual Property Organisation (WIPO) at the Thirty-Fourth Series of Meetings of the Assemblies of the Member States of WIPO (September 1999).
Article 168
Exceptions to the rights conferred by a trademark
Each Party shall provide for limited exceptions to the rights conferred by a trademark, such as the fair use of descriptive terms, the protection of geographical indications as provided for in Article 176, or other limited exceptions that take account of the legitimate interests of the owner of the trademark and of third parties.
Article 169
Scope
Article 170
Established geographical indications
Article 171
Addition of new geographical indications
Article 172
Scope of protection of geographical indications
The geographical indications listed in Annexes XVII-C and XVII-D to this Agreement, as well as those added pursuant to Article 171 of this Agreement, shall be protected against:
any direct or indirect commercial use of a protected name:
for comparable products not compliant with the product specification of the protected name, or
in so far as such use exploits the reputation of a geographical indication;
any misuse, imitation or evocation ( 28 ), even if the true origin of the product is indicated or if the protected name is translated or accompanied by an expression such as ‘style’, ‘type’, ‘method’, ‘as produced in’, ‘imitation’, ‘flavour’, ‘like’ or similar;
any other false or misleading indication as to the provenance, origin, nature or essential qualities of the product, on the inner or outer packaging, advertising material or documents relating to the product concerned, and the packing of the product in a container liable to convey a false impression as to its origin;
any other practice liable to mislead the consumer as to the true origin of the product.
Article 173
Protection of transcription of geographical indications
Article 174
Right of use of geographical indications
Article 175
Enforcement of protection
The Parties shall enforce the protection provided for in Articles 170 to 174 of this Agreement by appropriate administrative action by their public authorities. They shall also enforce such protection at the request of an interested party.
Article 176
Relationship with trademarks
Article 177
General rules
Article 178
Cooperation and transparency
Article 179
Geographical Indications Sub-Committee
The Geographical Indications Sub-Committee shall also see to the proper functioning of this Sub-Section and may consider any matter related to its implementation and operation. In particular, it shall be responsible for:
amending Article 170(1) and (2) of this Agreement, as regards the references to the law applicable in the Parties;
modifying Annexes XVII-C and XVII-D to this Agreement as regards geographical indications;
exchanging information on legislative and policy developments on geographical indications and any other matter of mutual interest in the area of geographical indications;
exchanging information on geographical indications for the purpose of considering their protection in accordance with this Sub-Section.
Article 180
International agreements
The Parties reaffirm their commitment to the Geneva Act to the Hague Agreement Concerning the International Registration of Industrial Designs of 1999.
Article 181
Protection of registered designs
A design applied to or incorporated in a product which constitutes a component part of a complex product shall only be considered to be new and original:
if the component part, once it has been incorporated into the complex product, remains visible during normal use of the latter, and
to the extent that those visible features of the component part fulfil in themselves the requirements as to novelty and originality.
Article 182
Exceptions and exclusions
Article 183
Relationship to copyright
A design shall also be eligible for protection under the law of copyright of a Party as from the date on which the design was created or fixed in any form. The extent to which, and the conditions under which, such a protection is conferred, including the level of originality required, shall be determined by each Party.
Article 184
International agreements
The Parties reaffirm their commitment to the WIPO Patent Cooperation Treaty.
Article 185
Patents and public health
Article 186
Supplementary protection certificate
Article 187
Protection of data submitted to obtain a marketing authorisation for medicinal products ( 30 )
Article 188
Protection of data to obtain a marketing authorisation for plant protection products
The test or study report submitted for the first time to obtain a marketing authorisation shall fulfil the following conditions:
that it is for the authorisation, or for an amendment of an authorisation in order to allow the use on other crops, and
that it is certified as compliant with the principles of good laboratory practice or of good experimental practice.
Article 189
Plant varieties
The Parties shall protect plant varieties rights, in accordance with the International Convention for the Protection of New Varieties of Plants and shall cooperate to promote and enforce those rights.
Article 190
General obligations
Article 191
Entitled applicants
Each Party shall recognise as persons entitled to seek application of the measures, procedures and remedies referred to in this Section and in Part III of the TRIPS Agreement:
the holders of intellectual property rights in accordance with the provisions of the applicable law,
all other persons authorised to use those rights, in particular licencees, in so far as permitted by and in accordance with the provisions of the applicable law;
intellectual property collective rights management bodies which are regularly recognised as having a right to represent holders of intellectual property rights, in so far as permitted by and in accordance with the provisions of the applicable law,
professional defence bodies which are regularly recognised as having a right to represent holders of intellectual property rights, in so far as permitted by and in accordance with the provisions of the applicable law.
Article 192
Measures for preserving evidence
Article 193
Right of information
Each Party shall ensure that, in the context of proceedings concerning an infringement of an intellectual property right and in response to a justified and proportionate request of the claimant, the competent judicial authorities may order that information on the origin and distribution networks of the goods or services which infringe an intellectual property right be provided by the infringer and/or any other person who:
was found in possession of the infringing goods on a commercial scale;
was found to be using the infringing services on a commercial scale;
was found to be providing on a commercial scale services used in infringing activities; or
was found to be producing, manufacturing or distributing infringing goods or to be providing services, through information provided by any person referred to in points (a), (b), or (c).
The information referred to in paragraph 1 shall, as appropriate, comprise:
the names and addresses of the producers, manufacturers, distributors, suppliers and other previous holders of the goods or services, as well as the intended wholesalers and retailers, and
information on the quantities produced, manufactured, delivered, received or ordered, as well as the price obtained for the goods or services in question.
Paragraphs 1 and 2 shall apply without prejudice to other statutory provisions which:
grant the right holder rights to receive fuller information;
govern the use in civil or criminal proceedings of the information communicated pursuant to this Article;
govern responsibility for misuse of the right of information;
afford an opportunity for refusing to provide information which would force the person referred to in paragraph 1 to admit to his/her own participation or that of his/her close relatives in an infringement of an intellectual property right; or
govern the protection of confidentiality of information sources or the processing of personal data.
Article 194
Provisional measures
Article 195
Measures resulting from a decision on the merits of the case
Article 196
Damages
Each Party shall ensure that the judicial authorities, on application of the injured party, order the infringer who knowingly, or with reasonable grounds to know, engaged in an infringing activity, to pay the right holder damages appropriate to the actual prejudice suffered by that right holder as a result of the infringement. When the judicial authorities set the damages:
they shall take into account all appropriate aspects, such as the negative economic consequences, including lost profits, which the injured party has suffered, any unfair profits made by the infringer and, in appropriate cases, elements other than economic factors, such as moral prejudice, caused to the right holder by the infringement; or
as an alternative to (a), they may, in appropriate cases, set the damages as a lump sum on the basis of elements such as at least the amount of royalties or fees which would have been due if the infringer had requested authorisation to use the intellectual property right in question.
Article 197
Legal costs
Each Party shall ensure that reasonable and proportionate legal costs and other expenses incurred by the successful party shall as a general rule be borne by the unsuccessful party, unless equity does not allow this and without prejudice to exceptions provided by domestic procedural rules.
Article 198
Publication of judicial decisions
Each Party shall ensure that, either in legal proceedings instituted for infringement of an industrial property right or in legal proceedings instituted for infringement of copyright, or in both cases, the judicial authorities may order at the request of the applicant and at the expense of the infringer, appropriate measures for the dissemination of the information concerning the decision, including displaying the decision and publishing it in full or in part.
Article 199
Presumption of authorship or ownership
For the purposes of applying the measures, procedures and remedies provided for in this Sub-Section:
for the author of a literary or artistic work, in the absence of proof to the contrary, to be regarded as such, and consequently to be entitled to institute infringement proceedings, it shall be sufficient for his/her name to appear on the work in the usual manner;
the provision under point (a) shall apply mutatis mutandis to the holders of rights related to copyright with regard to their protected subject matter.
Article 200
Border measures
Article 201
Codes of conduct
The Parties shall encourage:
the development by trade or professional associations or organisations of codes of conduct aimed at contributing towards the enforcement of ►C1 intellectual property rights; ◄
the submission to their respective competent authorities of draft codes of conduct and of any evaluations of the application of those codes of conduct.
Article 202
Cooperation
Areas of cooperation include, but are not limited to, the following activities:
exchange of information on the legal framework concerning intellectual property rights and relevant rules of protection and enforcement; exchange of experiences on legislative progress in those areas;
exchange of experiences and information on the enforcement of intellectual property rights;
exchange of experiences on central and sub-central enforcement by customs, police, administrative and judiciary bodies; coordination to prevent exports of counterfeit goods, including with other countries;
capacity-building; exchange and training of personnel;
promotion and dissemination of information on intellectual property rights in, inter alia, business circles and civil society; public awareness of consumers and right holders;
enhancement of institutional cooperation, for example between intellectual property offices;
actively promoting awareness and education of the general public on policies concerning intellectual property rights: formulate effective strategies to identify key audiences and create communication programmes to increase consumer and media awareness on the impact of intellectual property violations, including the risk to health and safety and the connection to organised crime.
CHAPTER 10
Competition
Article 203
Principles
The Parties recognise the importance of free and undistorted competition in their trade relations. The Parties acknowledge that anti-competitive business practices and state interventions (including subsidies) have the potential to distort the proper functioning of markets and undermine the benefits of trade liberalisation.
Article 204
Antitrust and mergers legislation and its implementation
Article 205
State monopolies, state enterprises and enterprises entrusted with special or exclusive rights
Article 206
Subsidies
Article 207
Dispute settlement
The provisions on the dispute settlement mechanism in Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement shall not apply to Articles 203, 204 and 205 of this Agreement.
Article 208
Relationship with the WTO
The provisions of this Chapter are without prejudice to the rights and obligations of a Party under the WTO Agreement, in particular the SCM Agreement and the Dispute Settlement Understanding (DSU).
Article 209
Confidentiality
When exchanging information under this Chapter the Parties shall take into account the limitations imposed by the requirements of professional and business secrecy in their respective jurisdictions.
CHAPTER 11
Trade-related energy provisions
Article 210
Definitions
For the purposes of this Chapter:
‘energy goods’ means crude oil (HS code 27.09), natural gas (HS code 27.11) and electrical energy (HS code 27.16);
‘energy transport facilities’ means high-pressure natural gas transmission pipelines; high-voltage electricity transmission grids and lines, including interconnectors used to connect different gas or electricity transmission networks; crude oil transmission pipelines, railways and other fixed facilities handling the transit of energy goods.
‘transit’ means the passage of energy goods across the territory of a Party, with or without trans-shipment, warehousing, breaking bulk, or change in the mode of transport, where such passage is only a portion of a complete journey beginning and terminating beyond the frontier of the Party across whose territory the traffic passes.
‘unauthorised taking’ means any activity consisting of the unlawful taking of energy goods from energy transport facilities.
Article 211
Transit
The Parties shall ensure transit, consistent with their international commitments in accordance with the provisions of GATT 1994 and the Energy Charter Treaty.
Article 212
Unauthorised taking of goods in transit
Each Party shall take all necessary measures to prohibit and address any unauthorised taking of energy goods in transit through its territory by any entity subject to that Party's control or jurisdiction.
Article 213
Uninterrupted transit
Article 214
Transit obligation for operators
Each Party shall ensure that operators of energy transport facilities take the necessary measures to:
minimise the risk of accidental interruption or reduction of transit;
expeditiously restore the normal operation of such transit, which has been accidentally interrupted or reduced.
Article 215
Regulatory authorities
Article 216
Organisation of markets
Article 217
Access to energy transport facilities
Article 218 ( 32 )
Relationship with the Energy Community Treaty
CHAPTER 12
Transparency
Article 219
Definitions
For the purposes of this Chapter:
‘measure of general application’ includes laws, regulations, judicial decisions, procedures and administrative rulings that may have an impact on any matter covered by Title IV (Trade and Trade-related Matters) of this Agreement. It does not include measures that are addressed to a particular person or a group of persons;
‘interested person’ means any natural or legal person established in the territory of a Party that may be directly affected by a measure of general application.
Article 220
Objective
Recognising the impact which regulatory environment may have on trade and investment between the Parties, the Parties shall provide a predictable regulatory environment for economic operators and efficient procedures, including for small and medium-sized enterprises, taking due account of the requirements of legal certainty and proportionality.
Article 221
Publication
Each Party shall ensure that measures of general application:
are promptly and readily available via an officially designated medium and where feasible, electronic means, in such a manner as to enable any person to become acquainted with them;
provide an explanation of the objective of, and the rationale for, such measures; and
allow for sufficient time between the publication and entry into force of such measures, except in duly justified cases including security or emergency issues.
Each Party shall:
endeavour to make publicly available at an appropriate early stage any proposal to adopt or to amend any measure of general application, including an explanation of the objective of, and rationale for such proposal;
provide reasonable opportunities for interested persons to comment on such proposal, allowing, in particular, for sufficient time for such opportunities; and
endeavour to take into consideration the comments received from interested persons with respect to such proposal.
Article 222
Enquiries and contact points
Article 223
Administration of measures of general application
To that end, each Party, in applying such measures to particular persons, goods or services of the other Party in specific cases, shall:
endeavour to provide interested persons, that are directly affected by an administrative proceeding, with a reasonable notice, in accordance with its procedures, when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated and a general description of any issues in controversy;
afford such interested persons a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action, in so far as the time, the nature of the proceeding and the public interest permit; and
ensure that its procedures are based on and carried out in accordance with its law.
Article 224
Review and appeal
Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceeding are provided with the right to:
a reasonable opportunity to support or defend their respective positions; and
a decision based on the evidence and the submissions of record or, where required by its law, the record compiled by the administrative authority.
Article 225
Regulatory quality and performance and good administrative behaviour
Article 226
Specific rules
The provisions of this Chapter shall apply without prejudice to any specific rules on transparency established in other Chapters of Title IV (Trade and Trade-related Matters) of this Agreement.
CHAPTER 13
Trade and sustainable development
Article 227
Context and objectives
Article 228
Right to regulate and levels of protection
Article 229
Multilateral labour standards and agreements
In accordance with their obligations as members of the ILO and the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, adopted by the International Labour Conference at its 86th Session in 1998, the Parties commit to respecting, promoting and realising in their law and practice and in their whole territory the internationally recognised core labour standards, as embodied in the fundamental ILO conventions, and in particular:
the freedom of association and the effective recognition of the right to collective bargaining;
the elimination of all forms of forced or compulsory labour;
the effective abolition of child labour; and
the elimination of discrimination in respect of employment and occupation.
Article 230
Multilateral environmental governance and agreements
Article 231
Trade and investment promoting sustainable development
The Parties reconfirm their commitment to enhance the contribution of trade to the goal of sustainable development in its economic, social and environmental dimensions. Accordingly:
the Parties recognise the beneficial role that core labour standards and decent work can have on economic efficiency, innovation and productivity, and they shall seek greater policy coherence between trade policies, on the one hand, and labour policies on the other;
the Parties shall strive to facilitate and promote trade and investment in environmental goods and services, including through addressing related non-tariff barriers;
the Parties shall strive to facilitate the removal of obstacles to trade or investment concerning goods and services of particular relevance to climate change mitigation, such as sustainable renewable energy and energy efficient products and services. This may include the adoption of appropriate technologies and the promotion of standards that respond to environmental and economic needs and minimise technical obstacles to trade;
the Parties agree to promote trade in goods that contribute to enhanced social conditions and environmentally sound practices, including goods that are the subject of voluntary sustainability assurance schemes such as fair and ethical trade schemes and eco-labels;
the Parties agree to promote corporate social responsibility, including through exchange of information and best practices. In this regard, the Parties refer to the relevant internationally recognised principles and guidelines, especially the OECD Guidelines for Multinational Enterprises.
Article 232
Biological diversity
To that end, the Parties commit to:
promoting trade in natural resource-based products obtained through a sustainable use of biological resources and contributing to the conservation of biodiversity;
exchanging information on actions on trade in natural resource-based products aimed at halting the loss of biological diversity and reducing pressures on biodiversity and, where relevant, cooperating to maximise the impact and ensure the mutual supportiveness of their respective policies;
promoting the listing of species under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) where the conservation status of those species is considered at risk; and
cooperating at the regional and global levels with the aim of promoting the conservation and the sustainable use of biological diversity in natural or agricultural ecosystems, including endangered species, their habitat, specially protected natural areas and genetic diversity; the restoration of ecosystems, and the elimination or the reduction of negative environmental impacts resulting from the use of living and non-living natural resources or of ecosystems.
Article 233
Sustainable management of forests and trade in forest products
To that end, the Parties commit to:
promoting trade in forest products derived from sustainably managed forests, harvested in accordance with the domestic legislation of the country of harvest, which could include bilateral or regional agreements to that end;
exchanging information on measures to promote the consumption of timber and timber products from sustainably managed forests and, where relevant, cooperate to developing such measures;
adopting measures to promote the conservation of forest cover and combat illegal logging and related trade, including with respect to third countries, as appropriate;
exchanging information on actions for improving forest governance and where relevant cooperating to maximise the impact and ensure the mutual supportiveness of their respective policies aiming at excluding illegally harvested timber and timber products from trade flows;
promoting the listing of timber species under CITES where the conservation status of those species is considered at risk; and
cooperating at the regional and the global levels with the aim of promoting the conservation of forest cover and the sustainable management of all types of forests.
Article 234
Trade in fish products
Taking into account the importance of ensuring responsible management of fish stocks in a sustainable manner as well as promoting good governance in trade, the Parties commit to:
promoting best practices in fisheries management with a view to ensuring the conservation and the management of fish stocks in a sustainable manner, and based on the ecosystem approach;
taking effective measures to monitor and control fishing activities;
complying with long-term conservation measures and sustainable exploitation of marine living resources as defined in the main UN and FAO instruments relating to these issues;
promoting coordinated data collection schemes and scientific cooperation between the Parties in order to improve current scientific advice for fisheries management;
cooperating with and within relevant Regional Fisheries Management Organisations as widely as possible; and
cooperating in the fight against illegal, unreported and unregulated (IUU) fishing and fishing related activities with comprehensive, effective and transparent measures. The Parties shall also implement policies and measures to exclude IUU products from trade flows and their markets.
Article 235
Upholding levels of protection
Article 236
Scientific information
When preparing and implementing measures aimed at protecting the environment or labour conditions that may affect trade or investment, the Parties shall take account of available scientific and technical information, and relevant international standards, guidelines or recommendations if they exist. In this regard, the Parties may also use the precautionary principle.
Article 237
Transparency
Each Party, in accordance with its domestic law and Chapter 12 (Transparency) of Title IV (Trade and Trade-related Matters) of this Agreement, shall ensure that any measure aimed at protecting the environment or labour conditions that may affect trade or investment is developed, introduced and implemented in a transparent manner, with due notice and public consultation, and with appropriate and timely communication to and consultation of non-state actors.
Article 238
Review of sustainability impacts
The Parties commit to reviewing, monitoring and assessing the impact of the implementation of Title IV (Trade and Trade-related Matters) of this Agreement on sustainable development through their respective participative processes and institutions, as well as those set up under this Agreement, for instance through trade-related sustainability impact assessments.
Article 239
Working together on trade and sustainable development
The Parties recognise the importance of working together on trade-related aspects of environmental and labour policies in order to achieve the objectives of Title IV (Trade and Trade-related Matters) of this Agreement. They may cooperate in, inter alia, the following areas:
labour or environmental aspects of trade and sustainable development in international fora, including in particular the WTO, the ILO, United Nations Environment Programme, and MEAs;
methodologies and indicators for trade sustainability impact assessments;
the impact of labour and environment regulations, norms and standards on trade, as well as the impact of trade and investment rules on labour and environmental law, including on the development of labour and environmental regulations and policy;
the positive and negative impacts of Title IV (Trade and Trade-related Matters) of this Agreement on sustainable development and ways to enhance, prevent or mitigate them, respectively, also taking into account the sustainability impact assessments carried out by either or both Parties;
exchanging views and best practices on promoting the ratification and the effective implementation of fundamental, priority and other up-to-date ILO conventions and MEAs of relevance in a trade context;
promoting private and public certification, traceability and labelling schemes, including eco-labelling;
promoting corporate social responsibility, for instance through actions concerning awareness raising, implementation and dissemination of internationally recognised guidelines and principles;
trade related aspects of the ILO Decent Work Agenda, including on the interlink between trade and full and productive employment, labour market adjustment, core labour standards, labour statistics, human resources development and lifelong learning, social protection and social inclusion, social dialogue and gender equality;
trade-related aspects of MEAs, including customs cooperation;
trade-related aspects of the current and future international climate change regime, including means to promote low-carbon technologies and energy efficiency;
trade-related measures to promote the conservation and the sustainable use of biological diversity;
trade-related measures to promote the conservation and sustainable management of forests, thereby reducing pressure on deforestation including with regard to illegal logging; and
trade-related measures to promote sustainable fishing practices and trade in sustainably managed fish products.
Article 240
Institutional set-up and overseeing mechanisms
Article 241
Joint Civil Society Dialogue Forum
Article 242
Government consultations
Article 243
Panel of Experts
CHAPTER 14
Dispute settlement
Article 244
Objective
The objective of this Chapter is to establish an effective and efficient mechanism for avoiding and settling any dispute between the Parties concerning the interpretation and application of Title IV (Trade and Trade-related Matters) of this Agreement with a view to arriving at, where possible, a mutually agreed solution.
Article 245
Scope of application
This Chapter shall apply with respect to any dispute concerning the interpretation and application of the provisions of Title IV (Trade and Trade-related Matters) of this Agreement, except as otherwise provided.
Article 246
Consultations
Article 247
Mediation
Any Party may request the other Party to enter into a mediation procedure pursuant to Annex XIX to this Agreement with respect to any measure adversely affecting its trade interests.
Article 248
Initiation of the arbitration procedure
Article 249
Establishment of the arbitration panel
Article 250
Preliminary ruling on urgency
If a Party so requests, the arbitration panel shall, within ten days of the date of its establishment, give a preliminary ruling on whether it deems the case to be urgent.
Article 251
Arbitration panel report
Article 252
Conciliation for urgent energy disputes
Article 253
Notification of the ruling of the arbitration panel
Article 254
Compliance with the arbitration panel ruling
The Party complained against shall take any measure necessary to comply promptly and in good faith with the arbitration panel ruling.
Article 255
Reasonable period of time for compliance
Article 256
Review of any measure taken to comply with the arbitration panel ruling
Article 257
Temporary remedies in case of non-compliance
The suspension of obligations and the compensation foreseen in this Article shall be temporary and shall not be applied after:
the Parties have reached a mutually agreed solution pursuant to Article 262 of this Agreement; or
the Parties have agreed that the measure notified under Article 256(1) of this Agreement brings the Party complained against into conformity with the provisions referred to in Article 245 of this Agreement; or
any measure found to be inconsistent with the provisions referred to in Article 245 has been withdrawn or amended so as to bring it into conformity with those provisions, as ruled under Article 256(2) of this Agreement.
Article 258
Remedies for urgent energy disputes