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Document 02021A0430(01)-20211201
Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part
Consolidated text: Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part
Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part
ELI: http://data.europa.eu/eli/agree_internation/2021/689(1)/2021-12-01
02021A0430(01) — EN — 01.12.2021 — 001.001
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
TRADE AND COOPERATION (OJ L 149 30.4.2021, p. 10) |
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TRADE AND COOPERATION
Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part
PREAMBLE
THE EUROPEAN UNION AND THE EUROPEAN ATOMIC ENERGY COMMUNITY
AND
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
1. |
REAFFIRMING their commitment to democratic principles, to the rule of law, to human rights, to countering proliferation of weapons of mass destruction and to the fight against climate change, which constitute essential elements of this and supplementing agreements, |
2. |
RECOGNISING the importance of global cooperation to address issues of shared interest, |
3. |
RECOGNISING the importance of transparency in international trade and investment to the benefit of all stakeholders, |
4. |
SEEKING to establish clear and mutually advantageous rules governing trade and investment between the Parties, |
5. |
CONSIDERING that in order to guarantee the efficient management and correct interpretation and application of this Agreement and any supplementing agreement, as well as compliance with the obligations under those agreements, it is essential to establish provisions ensuring overall governance, in particular dispute settlement and enforcement rules that fully respect the autonomy of the respective legal orders of the Union and of the United Kingdom, as well as the United Kingdom's status as a country outside the European Union, |
6. |
BUILDING upon their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization, done on 15 April 1994, and other multilateral and bilateral instruments of cooperation, |
7. |
RECOGNISING the Parties' respective autonomy and rights to regulate within their territories in order to achieve legitimate public policy objectives such as the protection and promotion of public health, social services, public education, safety, the environment including climate change, public morals, social or consumer protection, animal welfare, privacy and data protection and the promotion and protection of cultural diversity, while striving to improve their respective high levels of protection, |
8. |
BELIEVING in the benefits of a predictable commercial environment that fosters trade and investment between the Parties and prevents the distortion of trade and unfair competitive advantages, in a manner conducive to sustainable development in its economic, social and environmental dimensions, |
9. |
RECOGNISING the need for an ambitious, wide-ranging and balanced economic partnership to be underpinned by a level playing field for open and fair competition and sustainable development, through effective and robust frameworks for subsidies and competition and a commitment to uphold their respective high levels of protection in the areas of labour and social standards, environment, the fight against climate change, and taxation, |
10. |
RECOGNISING the need to ensure an open and secure market for businesses, including small and medium-sized enterprises, and their goods and services through addressing unjustified barriers to trade and investment, |
11. |
NOTING the importance of facilitating new opportunities for businesses and consumers through digital trade, and addressing unjustified barriers to data flows and trade enabled by electronic means, whilst respecting the Parties' personal data protection rules, |
12. |
DESIRING that this Agreement contribute to consumer welfare through policies ensuring a high level of consumer protection and economic well-being, as well as encouraging cooperation between relevant authorities, |
13. |
CONSIDERING the importance of cross-border connectivity by air, by road and by sea, for passengers and for goods, and the need to ensure high standards in the provision of transportation services between the Parties, |
14. |
RECOGNISING the benefits of trade and investment in energy and raw materials and the importance of supporting the delivery of cost efficient, clean and secure energy supplies to the Union and the United Kingdom, |
15. |
NOTING the interest of the Parties in establishing a framework to facilitate technical cooperation and to develop new trading arrangements for interconnectors which deliver robust and efficient outcomes for all timeframes, |
16. |
NOTING that cooperation and trade between the Parties in these areas should be based on fair competition in energy markets and non-discriminatory access to networks, |
17. |
RECOGNISING the benefits of sustainable energy, renewable energy, in particular offshore generation in the North Sea, and energy efficiency, |
18. |
DESIRING to promote the peaceful use of the waters adjacent to their coasts and the optimum and equitable utilisation of the marine living resources in those waters including the continued sustainable management of shared stocks, |
19. |
NOTING that the United Kingdom withdrew from the European Union and that with effect from 1 January 2021, the United Kingdom is an independent coastal State with corresponding rights and obligations under international law, |
20. |
AFFIRMING that the sovereign rights of the coastal States exercised by the Parties for the purpose of exploring, exploiting, conserving and managing the living resources in their waters should be conducted pursuant to and in accordance with the principles of international law, including the United Nations Convention on the Law of the Sea, done at Montego Bay on 10 December 1982 (United Nations Convention on the Law of the Sea), |
21. |
RECOGNISING the importance of the coordination of social security rights enjoyed by persons moving between the Parties to work, to stay or to reside, as well as the rights enjoyed by their family members and survivors, |
22. |
CONSIDERING that cooperation in areas of shared interest, such as science, research and innovation, nuclear research and space, in the form of the participation of the United Kingdom in the corresponding Union programmes under fair and appropriate conditions will benefit both Parties, |
23. |
CONSIDERING that cooperation between the United Kingdom and the Union relating to the prevention, investigation, detection or prosecution of criminal offences and to the execution of criminal penalties, including the safeguarding against and prevention of threats to public security, will enable the security of the United Kingdom and the Union to be strengthened, |
24. |
DESIRING that an agreement is concluded between the United Kingdom and the Union to provide a legal base for such cooperation, |
25. |
ACKNOWLEDGING that the Parties may supplement this Agreement with other agreements forming an integral part of their overall bilateral relations as governed by this Agreement and that the Agreement on Security Procedures for Exchanging and Protecting Classified Information is concluded as such a supplementing agreement and enables the exchange of classified information between the Parties under this Agreement or any other supplementing agreement, |
HAVE AGREED AS FOLLOWS:
PART ONE
COMMON AND INSTITUTIONAL PROVISIONS
TITLE I
GENERAL PROVISIONS
Article 1
Purpose
This Agreement establishes the basis for a broad relationship between the Parties, within an area of prosperity and good neighbourliness characterised by close and peaceful relations based on cooperation, respectful of the Parties' autonomy and sovereignty.
Article 2
Supplementing agreements
Paragraph 1 also applies to:
agreements between the Union and its Member States, of the one part, and the United Kingdom, of the other part; and
agreements between the European Atomic Energy Community, of the one part, and the United Kingdom, of the other part.
Article 3
Good faith
TITLE II
PRINCIPLES OF INTERPRETATION AND DEFINITIONS
Article 4
Public international law
Article 5
Private rights
Article 6
Definitions
For the purposes of this Agreement and any supplementing agreement, and unless otherwise specified, the following definitions apply:
"data subject" means an identified or identifiable natural person; an identifiable person being a person who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data or an online identifier, or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person;
"day" means a calendar day;
"Member State" means a Member State of the European Union;
"personal data" means any information relating to a data subject;
"State" means a Member State or the United Kingdom, as the context requires;
"territory" of a Party means in respect of each Party the territories to which this Agreement applies in accordance with Article 774;
"the transition period" means the transition period provided for in Article 126 of the Withdrawal Agreement; and
"Withdrawal Agreement" means the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, including its Protocols.
TITLE III
INSTITUTIONAL FRAMEWORK
Article 7
Partnership Council
The Partnership Council shall have the power to:
adopt decisions in respect of all matters where this Agreement or any supplementing agreement so provides;
make recommendations to the Parties regarding the implementation and application of this Agreement or of any supplementing agreement;
adopt, by decision, amendments to this Agreement or to any supplementing agreement in the cases provided for in this Agreement or in any supplementing agreement;
except in relation to Title III of Part One, until the end of the fourth year following the entry into force of this Agreement, adopt decisions amending this Agreement or any supplementing agreement, provided that such amendments are necessary to correct errors, or to address omissions or other deficiencies;
discuss any matter related to the areas covered by this Agreement or by any supplementing agreement;
delegate certain of its powers to the Trade Partnership Committee or to a Specialised Committee, except those powers and responsibilities referred to in point (g) of this paragraph;
by decision, establish Trade Specialised Committees and Specialised Committees, other than those referred to in Article 8(1), dissolve any Trade Specialised Committee or Specialised Committee, or change the tasks assigned to them; and
make recommendations to the Parties regarding the transfer of personal data in specific areas covered by this Agreement or any supplementing agreement.
Article 8
Committees
The following Committees are hereby established:
the Trade Partnership Committee, which addresses matters covered by Titles I to VII, Chapter 4 of Title VIII, Titles IX to XII of Heading One of Part Two, Heading Six of Part Two, and Annex 27;
the Trade Specialised Committee on Goods which addresses matters covered by Chapter 1 of Title I of Heading One of Part Two and Chapter 4 of Title VIII of Heading One of Part Two;
the Trade Specialised Committee on Customs Cooperation and Rules of Origin, which addresses matters covered by Chapters 2 and 5 of Title I of Heading One of Part Two, the Protocol on mutual administrative assistance in customs matters and the provisions on customs enforcement of intellectual property rights, fees and charges, customs valuation and repaired goods;
the Trade Specialised Committee on Sanitary and Phytosanitary Measures, which addresses matters covered by Chapter 3 of Title I of Heading One of Part Two;
the Trade Specialised Committee on Technical Barriers to Trade, which addresses matters covered by Chapter 4 of Title I of Heading One of Part Two and Article 323;
the Trade Specialised Committee on Services, Investment and Digital Trade, which addresses matters covered by Titles II to IV of Heading One of Part Two and Chapter 4 of Title VIII of Heading One of Part Two;
the Trade Specialised Committee on Intellectual Property, which addresses matters covered by Title V of Heading One of Part Two;
the Trade Specialised Committee on Public Procurement, which addresses matters covered by Title VI of Heading One of Part Two;
the Trade Specialised Committee on Regulatory Cooperation, which addresses matters covered by Title X of Heading One of Part Two;
the Trade Specialised Committee on Level Playing Field for Open and Fair Competition and Sustainable Development, which addresses matters covered by Title XI of Heading One of Part Two and Annex 27;
the Trade Specialised Committee on Administrative Cooperation in VAT and Recovery of Taxes and Duties, which addresses matters covered by the Protocol on administrative cooperation and combating fraud in the field of Value Added Tax and on mutual assistance for the recovery of claims relating to taxes and duties;
the Specialised Committee on Energy,
which addresses matters covered by Title VIII of Heading One of Part Two, with the exception of Chapter 4, Article 323 and Annex 27, and
which can discuss and provide expertise to the relevant Trade Specialised Committee on matters pertaining to Chapter 4 and Article 323;
the Specialised Committee on Air Transport, which addresses matters covered by Title I of Heading Two of Part Two;
the Specialised Committee on Aviation Safety, which addresses matters covered by Title II of Heading Two of Part Two;
the Specialised Committee on Road Transport, which addresses matters covered by Heading Three of Part Two;
the Specialised Committee on Social Security Coordination, which addresses matters covered by Heading Four of Part Two and the Protocol on Social Security Coordination;
the Specialised Committee on Fisheries, which addresses matters covered by Heading Five of Part Two;
the Specialised Committee on Law Enforcement and Judicial Cooperation, which addresses matters covered by Part Three; and
the Specialised Committee on Participation in Union Programmes, which addresses matters covered by Part Five.
With respect to issues related to Titles I to VII, Chapter 4 of Title VIII, Titles IX to XII of Heading One of Part Two, Heading Six of Part Two and Annex 27, the Trade Partnership Committee referred to in paragraph 1 of this Article shall have the power to:
assist the Partnership Council in the performance of its tasks and, in particular, report to the Partnership Council and carry out any task assigned to it by the latter;
supervise the implementation of this Agreement or any supplementing agreement;
adopt decisions or make recommendations as provided for in this Agreement or any supplementing agreement or where such power has been delegated to it by the Partnership Council;
supervise the work of the Trade Specialised Committees referred to in paragraph 1 of this Article;
explore the most appropriate way to prevent or solve any difficulty that may arise in relation to the interpretation and application of this Agreement or any supplementing agreement, without prejudice to Title I of Part Six;
exercise the powers delegated to it by the Partnership Council pursuant to point (f) of Article 7(4);
establish, by decision, Trade Specialised Committees other than those referred to in paragraph 1 of this Article, dissolve any such Trade Specialised Committee, or change the tasks assigned to them; and
establish, supervise, coordinate and dissolve Working Groups, or delegate their supervision to a Trade Specialised Committee.
With respect to issues related to their area of competence, Trade Specialised Committees shall have the power to:
monitor and review the implementation and ensure the proper functioning of this Agreement or any supplementing agreement;
assist the Trade Partnership Committee in the performance of its tasks and, in particular, report to the Trade Partnership Committee and carry out any task assigned to them by it;
conduct the preparatory technical work necessary to support the functions of the Partnership Council and the Trade Partnership Committee, including when those bodies have to adopt decisions or recommendations;
adopt decisions in respect of all matters where this Agreement or any supplementing agreement so provides;
discuss technical issues arising from the implementation of this Agreement or of any supplementing agreement, without prejudice to Title I of Part Six; and
provide a forum for the Parties to exchange information, discuss best practices and share implementation experience.
With respect to issues related to their area of competence, Specialised Committees shall have the power to:
monitor and review the implementation and ensure the proper functioning of this Agreement or any supplementing agreement;
assist the Partnership Council in the performance of its tasks and, in particular, report to the Partnership Council and carry out any task assigned to them by it;
adopt decisions, including amendments, and recommendations in respect of all matters where this Agreement or any supplementing agreement so provides or for which the Partnership Council has delegated its powers to a Specialised Committee in accordance with point (f) of Article 7(4);
discuss technical issues arising from the implementation of this Agreement or any supplementing agreement;
provide a forum for the Parties to exchange information, discuss best practices and share implementation experience;
establish, supervise, coordinate and dissolve Working Groups; and
provide a forum for consultation pursuant to Article 738(7).
Article 9
Working Groups
The following Working Groups are hereby established:
the Working Group on Organic Products, under the supervision of the Trade Specialised Committee on Technical Barriers to Trade;
the Working Group on Motor Vehicles and Parts, under the supervision of the Trade Specialised Committee on Technical Barriers to Trade;
the Working Group on Medicinal Products, under the supervision of the Trade Specialised Committee on Technical Barriers to Trade;
the Working Group on Social Security Coordination, under the supervision of the Specialised Committee on Social Security Coordination.
Article 10
Decisions and recommendations
Article 11
Parliamentary cooperation
Upon its establishment, the Parliamentary Partnership Assembly:
may request relevant information regarding the implementation of this Agreement and any supplementing agreement from the Partnership Council, which shall then supply that Assembly with the requested information;
shall be informed of the decisions and recommendations of the Partnership Council; and
may make recommendations to the Partnership Council.
Article 12
Participation of civil society
The Parties shall consult civil society on the implementation of this Agreement and any supplementing agreement, in particular through interaction with the domestic advisory groups and the Civil Society Forum referred to in Articles 13 and 14.
Article 13
Domestic advisory groups
Article 14
Civil Society Forum
PART TWO
TRADE, TRANSPORT, FISHERIES AND OTHER ARRANGEMENTS
HEADING ONE
TRADE
TITLE I
TRADE IN GOODS
CHAPTER 1
NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS (INCLUDING TRADE REMEDIES)
Article 15
Objective
The objective of this Chapter is to facilitate trade in goods between the Parties and to maintain liberalised trade in goods in accordance with the provisions of this Agreement.
Article 16
Scope
Except as otherwise provided, this Chapter applies to trade in goods of a Party.
Article 17
Definitions
For the purposes of this Chapter, the following definitions apply:
"consular transactions" means the procedure of obtaining from a consul of the importing Party in the territory of the exporting Party, or in the territory of a third party, a consular invoice or a consular visa for a commercial invoice, certificate of origin, manifest, shipper's export declaration or any other customs documentation in connection with the importation of the good;
"Customs Valuation Agreement" means the Agreement on Implementation of Article VII of GATT 1994;
"export licensing procedure" means an administrative procedure, whether or not referred to as licensing, used by a Party for the operation of export licensing regimes, requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body as a prior condition for exportation from that Party;
"import licensing procedure" means an administrative procedure, whether or not referred to as licensing, used by a Party for the operation of import licensing regimes, requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body or bodies as a prior condition for importation into the territory of the importing Party;
"originating goods" means, unless otherwise provided, a good qualifying under the rules of origin set out in Chapter 2 of this Title;
"performance requirement" means a requirement that:
a given quantity, value or percentage of goods be exported;
goods of the Party granting an import licence be substituted for imported goods;
a person benefiting from an import licence purchase other goods in the territory of the Party granting the import licence, or accord a preference to domestically produced goods;
a person benefiting from an import licence produce goods in the territory of the Party granting the import licence, with a given quantity, value or percentage of domestic content; or
relates in whatever form to the volume or value of imports, to the volume or value of exports or to the amount of foreign exchange flows;
"remanufactured good" means a good classified under HS Chapters 32, 40, 84 to 90, 94 or 95 that:
is entirely or partially composed of parts obtained from used goods;
has similar life expectancy and performance compared with such goods, when new; and
is given an equivalent warranty to as that applicable to such goods when new; and
"repair" means any processing operation undertaken on a good to remedy operating defects or material damage and entailing the re-establishment of the good to its original function or to ensure compliance with technical requirements for its use. Repair of a good includes restoration and maintenance, with a possible increase in the value of the good from restoring the original functionality of that good, but does not include an operation or process that:
destroys the essential characteristics of a good, or creates a new or commercially different good;
transforms an unfinished good into a finished good; or
is used to improve or upgrade the technical performance of a good.
Article 18
Classification of goods
The classification of goods in trade between the Parties under this Agreement is set out in each Party's respective tariff nomenclature in conformity with the Harmonised System.
Article 19
National treatment on internal taxation and regulation
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994 including its Notes and Supplementary Provisions. To that end, Article III of GATT 1994 and its Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis.
Article 20
Freedom of transit
Each Party shall accord freedom of transit through its territory, via the routes most convenient for international transit, for traffic in transit to or from the territory of the other Party or of any other third country. To that end, Article V of GATT 1994 and its Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis. The Parties understand that Article V of GATT 1994 includes the movement of energy goods via inter alia pipelines or electricity grids.
Article 21
Prohibition of customs duties
Except as otherwise provided for in this Agreement, customs duties on all goods originating in the other Party shall be prohibited.
Article 22
Export duties, taxes or other charges
Article 23
Fees and formalities
Each Party may impose charges or recover costs only where specific services are rendered, in particular, but not limited to, the following:
attendance, where requested, by customs staff outside official office hours or at premises other than customs premises;
analyses or expert reports on goods and postal fees for the return of goods to an applicant, particularly in respect of decisions relating to binding information or the provision of information concerning the application of the customs laws and regulations;
the examination or sampling of goods for verification purposes, or the destruction of goods, where costs other than the cost of using customs staff are involved; and
exceptional control measures, if these are necessary due to the nature of the goods or to a potential risk.
Article 24
Repaired goods
Article 25
Remanufactured goods
Article 26
Import and export restrictions
A Party shall not adopt or maintain:
export and import price requirements, except as permitted in enforcement of countervailing and anti-dumping duty orders and undertakings; or
import licensing conditioned on the fulfilment of a performance requirement.
Article 27
Import and export monopolies
A Party shall not designate or maintain an import or export monopoly. For the purposes of this Article, import or export monopoly means the exclusive right or grant of authority by a Party to an entity to import a good from, or export a good to, the other Party.
Article 28
Import licensing procedures
Article 29
Export licensing procedures
The publication of export licensing procedures shall include the following information:
the texts of the Party's export licensing procedures, or of any modifications the Party makes to those procedures;
the goods subject to each licensing procedure;
for each procedure, a description of the process for applying for a licence and any criteria an applicant must meet to be eligible to apply for a licence, such as possessing an activity licence, establishing or maintaining an investment, or operating through a particular form of establishment in a Party's territory;
a contact point or points from which interested persons can obtain further information on the conditions for obtaining an export licence;
the administrative body or bodies to which an application or other relevant documentation are to be submitted;
a description of any measure or measures being implemented through the export licensing procedure;
the period during which each export licensing procedure will be in effect, unless the procedure remains in effect until withdrawn or revised in a new publication;
if the Party intends to use a licensing procedure to administer an export quota, the overall quantity and, if applicable, the value of the quota and the opening and closing dates of the quota; and
any exemptions or exceptions that replace the requirement to obtain an export licence, how to request or use those exemptions or exceptions, and the criteria for granting them.
Article 30
Customs valuation
Each Party shall determine the customs value of goods of the other Party imported into its territory in accordance with Article VII of GATT 1994 and the Customs Valuation Agreement. To that end, Article VII of GATT 1994 including its Notes and Supplementary Provisions, and Articles 1 to 17 of the Customs Valuation Agreement including its Interpretative Notes, are incorporated into and made part of this Agreement, mutatis mutandis.
Article 31
Preference utilisation
Article 32
Trade remedies
A Party shall not apply or maintain, with respect to the same good, at the same time:
a measure pursuant to Article 5 of the Agreement on Agriculture; and
a measure pursuant to Article XIX of GATT 1994 and the Safeguards Agreement.
Article 33
Use of existing WTO tariff rate quotas
Article 34
Measures in case of breaches or circumventions of customs legislation
Subject to the possibility of exemption for compliant traders under paragraph 7, a Party may temporarily suspend the relevant preferential treatment of the product or products concerned in accordance with the procedure laid down in paragraphs 3 and 4 if:
that Party has made a finding, based on objective, compelling and verifiable information, that systematic and large-scale breaches or circumventions of customs legislation have been committed, and;
the other Party repeatedly and unjustifiably refuses or otherwise fails to comply with the obligations referred to in paragraph 1.
Article 35
Management of administrative errors
In case of systematic errors by the competent authorities or issues concerning the proper management of the preferential system at export, concerning notably the application of the provisions of Chapter 2 of this Title or the application of the Protocol on Mutual Administrative Assistance in Customs Matters, and if these errors or issues lead to consequences in terms of import duties, the Party facing such consequences may request the Trade Partnership Committee to examine the possibility of adopting decisions, as appropriate, to resolve the situation.
Article 36
Cultural property
For the purposes of this Article, the following definitions apply:
"cultural property" means property classified or defined as being among the national treasures possessing artistic, historic or archaeological value under the respective rules and procedures of each Party; and
"illicitly removed from the territory of a Party" means:
removed from the territory of a Party on or after 1 January 1993 in breach of that Party's rules on the protection of national treasures or in breach of its rules on the export of cultural property; or
not returned at the end of a period of lawful temporary removal or any breach of another condition governing such temporary removal, on or after 1 January 1993.
The competent authorities of the Parties shall cooperate with each other in particular by:
notifying the other Party where cultural property is found in their territory and there are reasonable grounds for believing that the cultural property has been illicitly removed from the territory of the other Party;
addressing requests of the other Party for the return of cultural property which has been illicitly removed from the territory of that Party;
preventing any actions to evade the return of such cultural property, by means of any necessary interim measures; and
taking any necessary measures for the physical preservation of cultural property which has been illicitly removed from the territory of the other Party.
CHAPTER 2
RULES OF ORIGIN
SECTION 1
RULES OF ORIGIN
Article 37
Objective
The objective of this Chapter is to lay down the provisions determining the origin of goods for the purpose of application of preferential tariff treatment under this Agreement, and setting out related origin procedures.
Article 38
Definitions
For the purposes of this Chapter, the following definitions apply:
"classification" means the classification of a product or material under a particular chapter, heading, or sub-heading of the Harmonised System;
"consignment" means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;
"exporter" means a person, located in a Party, who, in accordance with the requirements laid down in the laws and regulations of that Party, exports or produces the originating product and makes out a statement on origin;
"importer" means a person who imports the originating product and claims preferential tariff treatment for it;
"material" means any substance used in the production of a product, including any components, ingredients, raw materials, or parts;
"non-originating material" means a material which does not qualify as originating under this Chapter, including a material whose originating status cannot be determined;
"product" means the product resulting from the production, even if it is intended for use as a material in the production of another product;
"production" means any kind of working or processing including assembly.
Article 39
General requirements
For the purposes of applying the preferential tariff treatment by a Party to the originating good of the other Party in accordance with this Agreement, provided that the products satisfy all other applicable requirements of this Chapter, the following products shall be considered as originating in the other Party:
products wholly obtained in that Party within the meaning of Article 41;
products produced in that Party exclusively from originating materials in that Party; and
products produced in that Party incorporating non-originating materials provided they satisfy the requirements set out in Annex 3.
Article 40
Cumulation of origin
Article 41
Wholly obtained products
The following products shall be considered as wholly obtained in a Party:
mineral products extracted or taken from its soil or from its seabed;
plants and vegetable products grown or harvested there;
live animals born and raised there;
products obtained from live animals raised there;
products obtained from slaughtered animals born and raised there;
products obtained by hunting or fishing conducted there;
products obtained from aquaculture there if aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants are born or raised from seed stock such as eggs, roes, fry, fingerlings, larvae, parr, smolts or other immature fish at a post-larval stage by intervention in the rearing or growth processes to enhance production such as regular stocking, feeding or protection from predators;
products of sea fishing and other products taken from the sea outside any territorial sea by a vessel of a Party;
products made aboard of a factory ship of a Party exclusively from products referred to in point (h);
products extracted from the seabed or subsoil outside any territorial sea provided that they have rights to exploit or work such seabed or subsoil;
waste and scrap resulting from production operations conducted there;
waste and scrap derived from used products collected there, provided that those products are fit only for the recovery of raw materials;
products produced there exclusively from the products specified in points (a) to (l).
The terms "vessel of a Party" and "factory ship of a Party" in points (h) and (i) of paragraph 1 mean a vessel and factory ship which:
is registered in a Member State or in the United Kingdom;
sails under the flag of a Member State or of the United Kingdom; and
meets one of the following conditions:
it is at least 50 % owned by nationals of a Member State or of the United Kingdom; or
it is owned by legal persons which each:
have their head office and main place of business in the Union or the United Kingdom; and
are at least 50 % owned by public entities, nationals or legal persons of a Member State or the United Kingdom.
Article 42
Tolerances
If a product does not satisfy the requirements set out in Annex 3 due to the use of a non-originating material in its production, that product shall nevertheless be considered as originating in a Party, provided that:
the total weight of non-originating materials used in the production of products classified under Chapters 2 and 4 to 24 of the Harmonised System, other than processed fishery products classified under Chapter 16, does not exceed 15 % of the weight of the product;
the total value of non-originating materials for all other products, except for products classified under Chapters 50 to 63 of the Harmonised System, does not exceed 10 % of the ex-works price of the product; or
for a product classified under Chapters 50 to 63 of the Harmonised System, the tolerances set out in Notes 7 and 8 of Annex 2 apply.
Article 43
Insufficient production
Notwithstanding point (c) of Article 39(1), a product shall not be considered as originating in a Party if the production of the product in a Party consists only of one or more of the following operations conducted on non-originating materials:
preserving operations such as drying, freezing, keeping in brine and other similar operations where their sole purpose is to ensure that the products remain in good condition during transport and storage; ( 2 )
breaking-up or assembly of packages;
washing, cleaning; removal of dust, oxide, oil, paint or other coverings;
ironing or pressing of textiles and textile articles;
simple painting and polishing operations;
husking and partial or total milling of rice; polishing and glazing of cereals and rice; bleaching of rice;
operations to colour or flavour sugar or form sugar lumps; partial or total milling of sugar in solid form;
peeling, stoning and shelling, of fruits, nuts and vegetables;
sharpening, simple grinding or simple cutting;
sifting, screening, sorting, classifying, grading, matching including the making-up of sets of articles;
simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;
simple mixing of products, whether or not of different kinds; mixing of sugar with any material;
simple addition of water or dilution with water or another substance that does not materially alter the characteristics of the product, or dehydration or denaturation of products;
simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;
slaughter of animals.
Article 44
Unit of qualification
Article 45
Packing materials and containers for shipment
Packing materials and containers for shipment that are used to protect a product during transportation shall be disregarded in determining whether a product is originating.
Article 46
Packaging materials and containers for retail sale
Packaging materials and containers in which the product is packaged for retail sale, if classified with the product, shall be disregarded in determining the origin of the product, except for the purposes of calculating the value of non-originating materials if the product is subject to a maximum value of non-originating materials in accordance with Annex 3.
Article 47
Accessories, spare parts and tools
Accessories, spare parts, tools and instructional or other information materials shall be regarded as one product with the piece of equipment, machine, apparatus or vehicle in question if they:
are classified and delivered with, but not invoiced separately from, the product; and
are of the types, quantities and value which are customary for that product.
Article 48
Sets
Sets, as defined in General Rule 3 for the Interpretation of the Harmonised System, shall be considered as originating in a Party if all of their components are originating. If a set is composed of originating and non-originating components, the set as a whole shall be considered as originating in a Party if the value of the non-originating components does not exceed 15 % of the ex-works price of the set.
Article 49
Neutral elements
In order to determine whether a product is originating in a Party, it shall not be necessary to determine the origin of the following elements, which might be used in its production:
fuel, energy, catalysts and solvents;
plant, equipment, spare parts and materials used in the maintenance of equipment and buildings;
machines, tools, dies and moulds;
lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings;
gloves, glasses, footwear, clothing, safety equipment and supplies;
equipment, devices and supplies used for testing or inspecting the product; and
other materials used in the production which are not incorporated into the product nor intended to be incorporated into the final composition of the product.
Article 50
Accounting segregation
Article 51
Returned products
If a product originating in a Party exported from that Party to a third country returns to that Party, it shall be considered as a non-originating product unless it can be demonstrated to the satisfaction of the customs authority of that Party that the returning product:
is the same as that exported; and
has not undergone any operation other than what was necessary to preserve it in good condition while in that third country or while being exported.
Article 52
Non-alteration
Article 53
Review of drawback of, or exemption from, customs duties
Not earlier than two years from the entry into force of this Agreement, at the request of either Party, the Trade Specialised Committee on Customs Cooperation and Rules of Origin shall review the Parties' respective duty drawback and inward-processing schemes. For that purpose, at the request of a Party, no later than 60 days from that request, the other Party shall provide the requesting Party with available information and detailed statistics covering the period from the entry into force of this Agreement, or the previous five years if that period is shorter, on the operation of its duty-drawback and inward-processing scheme. In the light of this review, the Trade Specialised Committee on Customs Cooperation and Rules of Origin may make recommendations to the Partnership Council for the amendment of the provisions of this Chapter and its Annexes, with a view to introducing limitations or restrictions with respect to drawback of or exemption from customs duties.
SECTION 2
ORIGIN PROCEDURES
Article 54
Claim for preferential tariff treatment
A claim for preferential tariff treatment shall be based on:
a statement on origin that the product is originating made out by the exporter; or
the importer's knowledge that the product is originating.
Article 55
Time of the claim for preferential tariff treatment
By way of derogation from paragraph 1 of this Article, if the importer did not make a claim for preferential tariff treatment at the time of importation, the importing Party shall grant preferential tariff treatment and repay or remit any excess customs duty paid provided that:
the claim for preferential tariff treatment is made no later than three years after the date of importation, or such longer time period as specified in the laws and regulations of the importing Party;
the importer provides the basis for the claim as referred to in Article 54(2); and
the product would have been considered originating and would have satisfied all other applicable requirements within the meaning of Section 1 of this Chapter if it had been claimed by the importer at the time of importation.
The other obligations applicable to the importer under Article 54 remain unchanged.
Article 56
Statement on origin
A statement on origin may apply to:
a single shipment of one or more products imported into a Party; or
multiple shipments of identical products imported into a Party within the period specified in the statement on origin, which shall not exceed 12 months.
Article 57
Discrepancies
The customs authority of the importing Party shall not reject a claim for preferential tariff treatment due to minor errors or discrepancies in the statement on origin, or for the sole reason that an invoice was issued in a third country.
Article 58
Importer's knowledge
Article 59
Record-keeping requirements
For a minimum of three years after the date of importation of the product, an importer making a claim for preferential tariff treatment for a product imported into the importing Party shall keep:
if the claim was based on a statement on origin, the statement on origin made out by the exporter; or
if the claim was based on the importer's knowledge, all records demonstrating that the product satisfies the requirements for obtaining originating status.
Article 60
Small consignments
By way of derogation from Articles 54 to 58, provided that the product has been declared as meeting the requirements of this Chapter and the customs authority of the importing Party has no doubts as to the veracity of that declaration, the importing Party shall grant preferential tariff treatment to:
a product sent in a small package from private persons to private persons;
a product forming part of a traveller's personal luggage; and
for the United Kingdom, in addition to points (a) and (b) of this Article, other low value consignments.
The following products are excluded from the application of paragraph 1 of this Article:
products, the importation of which forms part of a series of importations that may reasonably be considered to have been made separately for the purpose of avoiding the requirements of Article 54;
for the Union:
a product imported by way of trade; the imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families are not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is intended; and
products, the total value of which exceeds EUR 500 in the case of products sent in small packages, or EUR 1 200 in the case of products forming part of a traveller's personal luggage. The amounts to be used in a given national currency shall be the equivalent in that currency of the amounts expressed in euro as at the first working day of October. The exchange rate amounts shall be those published for that day by the European Central Bank, unless a different amount is communicated to the European Commission by 15 October, and shall apply from 1 January the following year. The European Commission shall notify the United Kingdom of the relevant amounts. The Union may establish other limits which it will communicate to the United Kingdom; and
for the United Kingdom, products whose total value exceeds the limits set under the domestic law of the United Kingdom. The United Kingdom will communicate these limits to the Union.
Article 61
Verification
The information requested pursuant to paragraph 1 shall cover no more than the following elements:
if the claim was based on a statement on origin, that statement on origin; and
information pertaining to the fulfilment of origin criteria, which is:
where the origin criterion is "wholly obtained", the applicable category (such as harvesting, mining, fishing) and the place of production;
where the origin criterion is based on change in tariff classification, a list of all the non-originating materials, including their tariff classification (in 2, 4 or 6-digit format, depending on the origin criterion);
where the origin criterion is based on a value method, the value of the final product as well as the value of all the non-originating materials used in the production of that product;
where the origin criterion is based on weight, the weight of the final product as well as the weight of the relevant non-originating materials used in the final product;
where the origin criterion is based on a specific production process, a description of that specific process.
Article 62
Administrative cooperation
If the claim for preferential tariff treatment was based on a statement on origin, as appropriate after having first requested information in accordance with Article 61(1) and based on the reply from the importer, the customs authority of the importing Party conducting the verification may also request information from the customs authority of the exporting Party within a period of two years after the importation of the products, or from the moment the claim is made pursuant to point (a) of Article 55(2) if the customs authority of the importing Party conducting the verification considers that additional information is necessary in order to verify the originating status of the product or to verify that the other requirements provided for in this Chapter have been met. The request for information shall include the following elements:
the statement on origin;
the identity of the customs authority issuing the request;
the name of the exporter;
the subject and scope of the verification; and
any relevant documentation.
In addition, the customs authority of the importing Party may request the customs authority of the exporting Party to provide specific documentation and information, where appropriate.
Without prejudice to paragraph 5, the customs authority of the exporting Party receiving the request referred to in paragraph 2 shall provide the customs authority of the importing Party with the following information:
the requested documentation, where available;
an opinion on the originating status of the product;
the description of the product that is subject to examination and the tariff classification relevant to the application of this Chapter;
a description and explanation of the production process that is sufficient to support the originating status of the product;
information on the manner in which the examination of the product was conducted; and
supporting documentation, where appropriate.
Article 63
Denial of preferential tariff treatment
Without prejudice to paragraph 3, the customs authority of the importing Party may deny preferential tariff treatment, if:
within three months after the date of a request for information pursuant to Article 61(1):
no reply has been provided by the importer;
where the claim for preferential tariff treatment was based on a statement on origin, no statement on origin has been provided; or
where the claim for preferential tariff treatment was based on the importer's knowledge, the information provided by the importer is inadequate to confirm that the product is originating;
within three months after the date of a request for additional information pursuant to Article 61(5):
no reply has been provided by the importer; or
the information provided by the importer is inadequate to confirm that the product is originating;
within 10 months ( 3 ) after the date of a request for information pursuant to Article 62(2):
no reply has been provided by the customs authority of the exporting Party; or
the information provided by the customs authority of the exporting Party is inadequate to confirm that the product is originating.
If such notification is made, consultations shall be held at the request of either Party, within three months after the date of the notification. The period for consultation may be extended on a case-by-case basis by mutual agreement between the customs authorities of the Parties. The consultation may take place in accordance with the procedure set by the Trade Specialised Committee on Customs Cooperation and Rules of Origin.
Upon the expiry of the period for consultation, if the customs authority of the importing Party cannot confirm that the product is originating, it may deny the preferential tariff treatment if it has a sufficient justification for doing so and after having granted the importer the right to be heard. However, when the customs authority of the exporting Party confirms the originating status of the products and provides justification for such conclusion, the customs authority of the importing Party shall not deny preferential tariff treatment to a product on the sole ground that Article 62(5) has been applied.
Article 64
Confidentiality
Article 65
Administrative measures and sanctions
Each Party shall ensure the effective enforcement of this Chapter. Each Party shall ensure that the competent authorities are able to impose administrative measures, and, where appropriate, sanctions, in accordance with its laws and regulations, on any person who draws up a document, or causes a document to be drawn up, which contains incorrect information that was provided for the purpose of obtaining a preferential tariff treatment for a product, who does not comply with the requirements set out in Article 59, or who does not provide the evidence, or refuses to submit to a visit, as referred to in Article 62(3).
SECTION 3
OTHER PROVISIONS
Article 66
Ceuta and Melilla
Article 67
Transitional provisions for products in transit or storage
The provisions of this Agreement may be applied to products which comply with the provisions of this Chapter and which on the date of entry into force of this Agreement are either in transit from the exporting Party to the importing Party or under customs control in the importing Party without payment of import duties and taxes, subject to the making of a claim for preferential tariff treatment referred to in Article 54 to the customs authority of the importing Party, within 12 months of that date.
Article 68
Amendment to this Chapter and its Annexes
The Partnership Council may amend this Chapter and its Annexes.
CHAPTER 3
SANITARY AND PHYTOSANITARY MEASURES
Article 69
Objectives
The objectives of this Chapter are to:
protect human, animal and plant life or health in the territories of the Parties while facilitating trade between the Parties;
further the implementation of the SPS Agreement;
ensure that the Parties' sanitary and phytosanitary ("SPS") measures do not create unnecessary barriers to trade;
promote greater transparency and understanding on the application of each Party's SPS measures;
enhance cooperation between the Parties in the fight against antimicrobial resistance, promotion of sustainable food systems, protection of animal welfare, and on electronic certification;
enhance cooperation in the relevant international organisations to develop international standards, guidelines and recommendations on animal health, food safety and plant health; and
promote implementation by each Party of international standards, guidelines and recommendations.
Article 70
Scope
Article 71
Definitions
For the purposes of this Chapter, the following definitions apply:
the definitions contained in Annex A of the SPS Agreement;
the definitions adopted under the auspices of the Codex Alimentarius Commission (the "Codex");
the definitions adopted under the auspices of the World Organisation for Animal Health (the "OIE"); and
the definitions adopted under the auspices of the International Plant Protection Convention (the "IPPC").
For the purposes of this Chapter, the following definitions apply:
"import conditions" means any SPS measures that are required to be fulfilled for the import of products; and
"protected zone" for a specified regulated plant pest means an officially defined geographical area in which that pest is not established in spite of favourable conditions and its presence in other parts of the territory of the Party, and into which that pest is not allowed to be introduced.
Article 72
Rights and obligations
The Parties reaffirm their rights and obligations under the SPS Agreement. This includes the right to adopt measures in accordance with Article 5(7) of the SPS Agreement.
Article 73
General principles
Regarding trade-related SPS procedures and approvals established under this Chapter, each Party shall ensure that those procedures and related SPS measures:
are initiated and completed without undue delay;
do not include unnecessary, scientifically and technically unjustified or unduly burdensome information requests that might delay access to each other's markets;
are not applied in a manner which would constitute arbitrary or unjustifiable discrimination against the other Party's entire territory or parts of the other Party's territory where identical or similar SPS conditions exist; and
are proportionate to the risks identified and not more trade restrictive than necessary to achieve the importing Party's appropriate level of protection.
Article 74
Official certification
Where the importing Party requires official certificates, the model certificates shall be:
set in line with the principles as laid down in the international standards of the Codex, the IPPC and the OIE; and
applicable to imports from all parts of the territory of the exporting Party.
Article 75
Import conditions and procedures
In relation to the processes set out in paragraphs 3 to 8, the following actions shall be taken:
as soon as the importing Party has positively concluded its assessment, it shall promptly take all necessary legislative and administrative measures to allow trade to take place without undue delay;
the exporting Party shall:
provide all relevant information required by the importing Party; and
give reasonable access to the importing Party for audit and other relevant procedures.
the importing party shall establish a list of regulated pests for products, or other related objects, where a phytosanitary concern exists. That list shall contain:
the pests not known to occur within any part of its own territory;
the pests known to occur within its own territory and under official control;
the pests known to occur within parts of its own territory and for which pest free areas or protected zones are established; and
non-quarantine pests known to occur within its own territory and under official control for specified planting material.
Article 76
Lists of approved establishments
Article 77
Transparency and exchange of information
Each Party shall pursue transparency as regards SPS measures applicable to trade and shall for those purposes undertake the following actions:
promptly communicate to the other Party any changes to its SPS measures and approval procedures, including changes that may affect its capacity to fulfil the SPS import requirements of the other Party for certain products;
enhance mutual understanding of its SPS measures and their application;
exchange information with the other Party on matters related to the development and application of SPS measures, including the progress on new available scientific evidence, that affect, or may affect, trade between the Parties with a view to minimising negative trade effects;
upon request of the other Party, communicate the conditions that apply for the import of specific products within 20 working days;
upon request of the other Party, communicate the state of play of the procedure for the authorisation of specific products within 20 working days;
communicate to the other Party any significant change to the structure or organisation of a Party's competent authority;
on request, communicate the results of a Party's official control and a report that concerns the results of the control carried out;
on request, communicate the results of an import check provided for in case of a rejected or a non-compliant consignment; and
on request, communicate, without undue delay, a risk assessment or scientific opinion produced by a Party that is relevant to this Chapter.
Article 78
Adaptation to regional conditions
Article 79
Audits and verifications
The importing Party may carry out audits and verifications of the following:
all or part of the other Party's authorities' inspection and certification system;
the results of the controls carried out under the exporting Party's inspection and certification system.
For the purposes of carrying out such audits and verifications, the importing Party may conduct audits and verifications by means of requests of information from the exporting Party or audit and verification visits to the exporting Party, which may include:
an assessment of all or part of the responsible authorities' total control programme, including, where appropriate, reviews of regulatory audit and inspection activities;
on-the-spot checks; and
the collection of information and data to assess the causes of recurring or emerging problems in relation to exports of products.
Article 80
Notification and consultation
A Party shall notify the other Party without undue delay of:
a significant change to pest or disease status;
the emergence of a new animal disease;
a finding of epidemiological importance with respect to an animal disease;
a significant food safety issue identified by a Party;
any additional measures beyond the basic requirements of their respective SPS measures taken to control or eradicate animal disease or protect human health, and any changes in preventive policies, including vaccination policies;
on request, the results of a Party's official control and a report that concerns the results of the control carried out; and
any significant changes to the functions of a system or database.
Article 81
Emergency measures
Article 82
Multilateral international fora
The Parties agree to cooperate in multilateral international fora on the development of international standards, guidelines and recommendations in the areas under the scope of this Chapter.
Article 83
Implementation and competent authorities
For the purposes of the implementation of this Chapter, each Party shall take all of the following into account:
decisions of the WTO SPS Committee;
the work of the relevant international standard setting bodies;
any knowledge and past experience it has of trading with the exporting Party; and
information provided by the other Party.
Article 84
Cooperation on animal welfare
Article 85
Cooperation on antimicrobial resistance
The dialogue referred to in paragraph 1 shall cover, inter alia:
collaboration to follow up existing and future guidelines, standards, recommendations and actions developed in relevant international organisations and existing and future initiatives and national plans aiming to promote the prudent and responsible use of antibiotics and relating to animal production and veterinary practices;
collaboration in the implementation of the recommendations of OIE, WHO and Codex, in particular CAC-RCP61/2005;
the exchange of information on good farming practices;
the promotion of research, innovation and development;
the promotion of multidisciplinary approaches to combat antimicrobial resistance, including the One Health approach of the WHO, OIE and Codex.
Article 86
Sustainable food systems
Each Party shall encourage its food safety, animal and plant health services to cooperate with their counterparts in the other Party with the aim of promoting sustainable food production methods and food systems.
Article 87
Trade Specialised Committee on Sanitary and Phytosanitary Measures
The Trade Specialised Committee on Sanitary and Phytosanitary Measures shall supervise the implementation and operation of this Chapter and have the following functions:
promptly clarifying and addressing, where possible, any issue raised by a Party relating to the development, adoption or application of sanitary and phytosanitary requirements, standards and recommendations under this Chapter or the SPS Agreement;
discussing ongoing processes on the development of new regulations;
discussing as expeditiously as possible concerns expressed by a Party with regard to the SPS import conditions and procedures applied by the other Party;
regularly reviewing the Parties' SPS measures, including certification requirements and border clearance processes, and their application, in order to facilitate trade between the Parties, in accordance with the principles, objectives and procedures set out in Article 5 of the SPS Agreement. Each Party shall identify any appropriate action it will take, including in relation to the frequency of identity and physical checks, taking into consideration the results of this review and based on the criteria laid down in Annex 10 of this Agreement;
exchanging views, information, and experiences with respect to the cooperation activities on protecting animal welfare and the fight against antimicrobial resistance carried out under Articles 84 and 85;
on request of a Party, considering what constitutes a significant change in the disease or pest situation referred to in Article 78(9);
adopting decisions to:
add definitions as referred to in Article 71;
define the specific cases referred to in Article 74(2);
define details for the procedures referred to in Article 78(1);
establish other ways to support the explanations referred to in Article 78(5) and (7).
CHAPTER 4
TECHNICAL BARRIERS TO TRADE
Article 88
Objective
The objective of this Chapter is to facilitate trade in goods between the Parties by preventing, identifying and eliminating unnecessary technical barriers to trade.
Article 89
Scope
This Chapter does not apply to:
purchasing specifications prepared by governmental bodies for production or consumption requirements of such bodies; or
SPS measures that fall within the scope of Chapter 3 of this Title.
Article 90
Relationship with the TBT Agreement
Article 91
Technical regulations
A standard developed by other international organisations may also be considered a relevant international standard within the meaning of Article 2, Article 5 and Annex 3 of the TBT Agreement, provided that:
it has been developed by a standardising body which seeks to establish consensus either:
among national delegations of the participating WTO Members representing all the national standardising bodies in their territory that have adopted, or expect to adopt, standards on the subject matter to which the international standardisation activity relates, or,
among governmental bodies of participating WTO Members; and
it has been developed in accordance with the Decision of the WTO Committee on Technical Barriers to Trade on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5, and Annex 3 of the TBT Agreement. ( 4 )
Article 92
Standards
Each Party shall encourage the standardising bodies established within its territory, as well as the regional standardising bodies of which a Party or the standardising bodies established in its territory are members:
to participate, within the limits of their resources, in the preparation of international standards by relevant international standardising bodies;
to use relevant international standards as a basis for the standards they develop, except where such international standards would be ineffective or inappropriate, for example because of an insufficient level of protection, fundamental climatic or geographical factors or fundamental technological problems;
to avoid duplications of, or overlaps with, the work of international standardising bodies;
to review national and regional standards that are not based on relevant international standards at regular intervals, with a view to increasing the convergence of those standards with relevant international standards;
to cooperate with the relevant standardising bodies of the other Party in international standardisation activities, including through cooperation in the international standardising bodies or at regional level;
to foster bilateral cooperation with the standardising bodies of the other Party; and
to exchange information between standardising bodies.
The Parties shall exchange information on:
their respective use of standards in support of technical regulations; and
their respective standardisation processes, and the extent to which they use international, regional or sub-regional standards as a basis for their national standards.
Article 93
Conformity assessment
Where a Party requires conformity assessment as a positive assurance that a product conforms with a technical regulation, it shall:
select conformity assessment procedures that are proportionate to the risks involved, as determined on the basis of a risk-assessment;
consider as proof of compliance with technical regulations the use of a supplier's declaration of conformity, i.e. a declaration of conformity issued by the manufacturer on the sole responsibility of the manufacturer without a mandatory third-party assessment, as assurance of conformity among the options for showing compliance with technical regulations;
where requested by the other Party, provide information on the criteria used to select the conformity assessment procedures for specific products.
Where a Party requires third party conformity assessment as a positive assurance that a product conforms with a technical regulation and it has not reserved this task to a government authority as specified in paragraph 4, it shall:
use accreditation, as appropriate, as a means to demonstrate technical competence to qualify conformity assessment bodies. Without prejudice to its right to establish requirements for conformity assessment bodies, each Party recognises the valuable role that accreditation operated with authority derived from government and on a non-commercial basis can play in the qualification of conformity assessment bodies;
use relevant international standards for accreditation and conformity assessment;
encourage accreditation bodies and conformity assessment bodies located within its territory to join any relevant functioning international agreements or arrangements for harmonisation or facilitation of acceptance of conformity assessment results;
if two or more conformity assessment bodies are authorised by a Party to carry out conformity assessment procedures required for placing a product on the market, ensure that economic operators have a choice amongst the conformity assessment bodies designated by the authorities of a Party for a particular product or set of products;
ensure that conformity assessment bodies are independent of manufacturers, importers and economic operators in general and that there are no conflicts of interest between accreditation bodies and conformity assessment bodies;
allow conformity assessment bodies to use subcontractors to perform testing or inspections in relation to the conformity assessment, including subcontractors located in the territory of the other Party, and may require subcontractors to meet the same requirements the conformity assessment body must meet to perform such testing or inspections itself; and
publish on a single website a list of the bodies that it has designated to perform such conformity assessment and the relevant information on the scope of designation of each such body.
Nothing in this Article shall preclude a Party from requiring that conformity assessment in relation to specific products is performed by its specified government authorities. If a Party requires that conformity assessment is performed by its specified government authorities, that Party shall:
limit the conformity assessment fees to the approximate cost of the services rendered and, at the request of an applicant for conformity assessment, explain how any fees it imposes for that conformity assessment are limited to the approximate cost of services rendered; and
make publicly available the conformity assessment fees.
Article 94
Transparency
If a Party receives written comments on its proposed technical regulation or conformity assessment procedure from the other Party, it shall:
if requested by the other Party, discuss the written comments with the participation of its competent regulatory authority, at a time when they can be taken into account; and
reply in writing to the comments no later than the date of publication of the technical regulation or conformity assessment procedure.
Article 95
Marking and labelling
Where a Party requires mandatory marking or labelling of products, all of the following conditions shall apply:
it shall only require information which is relevant for consumers or users of the product or information that indicates that the product conforms to the mandatory technical requirements;
it shall not require any prior approval, registration or certification of the labels or markings of products, nor any fee disbursement, as a precondition for placing on its market products that otherwise comply with its mandatory technical requirements unless it is necessary in view of legitimate objectives;
where the Party requires the use of a unique identification number by economic operators, it shall issue such a number to the economic operators of the other Party without undue delay and on a non-discriminatory basis;
unless the information listed in point (i), (ii) or (iii) would be misleading, contradictory or confusing in relation to the information that the importing Party requires with respect to the goods, the importing Party shall permit:
information in other languages in addition to the language required in the importing Party of the goods;
internationally-accepted nomenclatures, pictograms, symbols or graphics; and
additional information to that required in the importing Party of the goods;
it shall accept that labelling, including supplementary labelling or corrections to labelling, take place in customs warehouses or other designated areas in the country of import as an alternative to labelling in the country of origin, unless such labelling is required to be carried out by approved persons for reasons of public health or safety; and
unless it considers that legitimate objectives may be undermined, it shall endeavour to accept the use of non-permanent or detachable labels, or marking or labelling in the accompanying documentation, rather than requiring labels or marking to be physically attached to the product.
Article 96
Cooperation on market surveillance and non-food product safety and compliance
To guarantee the independent and impartial functioning of market surveillance, the Parties shall ensure:
the separation of market surveillance functions from conformity assessment functions; and
the absence of any interests that would affect the impartiality of market surveillance authorities in the performance of their control or supervision of economic operators.
The Parties shall cooperate and exchange information in the area of non-food product safety and compliance, which may include in particular the following:
market surveillance and enforcement activities and measures;
risk assessment methods and product testing;
coordinated product recalls or other similar actions;
scientific, technical and regulatory matters in order to improve non-food product safety and compliance;
emerging issues of significant health and safety relevance;
standardisation-related activities;
exchanges of officials.
The arrangement shall set out the modalities under which:
the Union is to provide the United Kingdom with selected information from its RAPEX alert system, or its successor, as referred to in Directive 2001/95/EC of the European Parliament and of the Council of 3 December 2001 on general product safety, or its successor;
the United Kingdom is to provide the Union with selected information from its database relating to market surveillance and product safety established under the General Product Safety Regulations 2005, or its successor; and
the Parties are to inform each other of any follow-up actions and measures taken in response to the information exchanged.
Article 97
Technical discussions
If a Party considers that a draft or proposed technical regulation or conformity assessment procedure of the other Party might have a significant effect on trade between the Parties, it may request technical discussions on the matter. The request shall be made in writing to the other Party and shall identify:
the measure at issue;
the provisions of this Chapter or of an Annex to this Chapter to which the concerns relate; and
the reasons for the request, including a description of the requesting Party's concerns regarding the measure.
Article 98
Cooperation
For the purposes of paragraph 1, the Parties shall seek to identify, develop and promote cooperation activities of mutual interest. These activities may in particular relate to:
the exchange of information, experience and data related to technical regulations, standards and conformity assessment procedures;
ensuring efficient interaction and cooperation of their respective regulatory authorities at international, regional or national level;
exchanging information, to the extent possible, about international agreements and arrangements regarding technical barriers to trade to which one or both Parties are party; and
establishment of or participation in trade facilitating initiatives.
Article 99
Contact points
Article 100
Trade Specialised Committee on Technical Barriers to Trade
The Trade Specialised Committee on Technical Barriers to Trade shall supervise the implementation and operation of this Chapter and its Annexes and shall promptly clarify and address, where possible, any issue raised by a Party relating to the development, adoption or application of technical regulations, standards and conformity assessment procedures under this Chapter or the TBT Agreement.
CHAPTER 5
CUSTOMS AND TRADE FACILITATION
Article 101
Objective
The objectives of this Chapter are:
to reinforce cooperation between the Parties in the area of customs and trade facilitation and to support or maintain, where relevant, appropriate levels of compatibility of their customs legislation and practices with a view to ensuring that relevant legislation and procedures, as well as the administrative capacity of the relevant administrations, fulfil the objectives of promoting trade facilitation while ensuring effective customs controls and effective enforcement of customs legislation and trade related laws and regulations, the proper protection of security and safety of citizens and the respect of prohibitions and restrictions and financial interests of the Parties;
to reinforce administrative cooperation between the Parties in the field of VAT and mutual assistance in claims related to taxes and duties;
to ensure that the legislation of each Party is non-discriminatory and that customs procedures are based upon the use of modern methods and effective controls to combat fraud and to promote legitimate trade; and
to ensure that legitimate public policy objectives, including in relation to security, safety and the fight against fraud are not compromised in any way.
Article 102
Definitions
For the purposes of this Chapter and Annex 18 and the Protocol on mutual administrative assistance in customs matters and the Protocol on administrative cooperation and combating fraud in the field of Value Added Tax and on mutual assistance for the recovery of claims relating to taxes and duties, the following definitions apply:
"Agreement on Pre-shipment Inspection" means the Agreement on Pre-shipment Inspection, contained in Annex 1A to the WTO Agreement;
"ATA and Istanbul Conventions" means the Customs Convention on the ATA Carnet for the Temporary Admission of Goods done in Brussels on 6 December 1961 and the Istanbul Convention on Temporary Admission done on 26 June 1990;
"Common Transit Convention" means the Convention of 20 May 1987 on a common transit procedure;
"Customs Data Model of the WCO" means the library of data components and electronic templates for the exchange of business data and compilation of international standards on data and information used in applying regulatory facilitation and controls in global trade, as published by the WCO Data Model Project Team from time to time;
"customs legislation" means any legal or regulatory provision applicable in the territory of either Party, governing the entry or import of goods, exit or export of goods, the transit of goods and the placing of goods under any other customs regime or procedure, including measures of prohibition, restriction and control;
"information" means any data, document, image, report, communication or authenticated copy, in any format, including in electronic format, whether or not processed or analysed;
"person" means any person as defined in point (l) of Article 512 ( 5 );
"SAFE Framework" means the SAFE Framework of Standards to Secure and Facilitate Global Trade adopted at the June 2005 World Customs Organisation Session in Brussels and as updated from time to time; and
"WTO Trade Facilitation Agreement" means the Agreement on Trade Facilitation annexed to the Protocol Amending the WTO Agreement (decision of 27 November 2014).
Article 103
Customs cooperation
The Parties shall develop cooperation, including in the following areas:
exchanging information concerning customs legislation, the implementation of customs legislation and customs procedures; particularly in the following areas:
the simplification and modernisation of customs procedures;
the facilitation of transit movements and transhipment;
relations with the business community; and
supply chain security and risk management;
working together on the customs-related aspects of securing and facilitating the international trade supply chain in accordance with the SAFE Framework;
considering developing joint initiatives relating to import, export and other customs procedures including technical assistance, as well as towards ensuring an effective service to the business community;
strengthening their cooperation in the field of customs in international organisations such as the WTO and the WCO, and exchanging information or holding discussions with a view to establishing where possible common positions in those international organisations and in UNCTAD, UNECE;
endeavouring to harmonise their data requirements for import, export and other customs procedures by implementing common standards and data elements in accordance with the Customs Data Model of the WCO;
strengthening their cooperation on risk management techniques, including sharing best practices, and, where appropriate, risk information and control results. Where relevant and appropriate, the Parties may also consider mutual recognition of risk management techniques, risk standards and controls and customs security measures; the Parties may also consider, where relevant and appropriate, the development of compatible risk criteria and standards, control measures and priority control areas;
establishing mutual recognition of Authorised Economic Operator programmes to secure and facilitate trade;
fostering cooperation between customs and other government authorities or agencies in relation to Authorised Economic Operator programmes, which may be achieved, inter alia, by agreeing on the highest standards, facilitating access to benefits and minimising unnecessary duplication;
enforcing intellectual property rights by customs authorities, including exchanging information and best practices in customs operations focusing in particular on intellectual property rights enforcement;
maintaining compatible customs procedures, where appropriate and practicable to do so, including the application of a single administrative document for customs declaration; and
exchanging, where relevant and appropriate and under arrangements to be agreed, certain categories of customs-related information between the customs authorities of the Parties through structured and recurrent communication, for the purposes of improving risk management and the effectiveness of customs controls, targeting goods at risk in terms of revenue collection or safety and security, and facilitating legitimate trade; such exchanges may include export and import declaration data on trade between the Parties, with the possibility of exploring, through pilot initiatives, the development of interoperable mechanisms to avoid duplication in the submission of such information. Exchanges under this point shall be without prejudice to exchanges of information that may take place between the Parties pursuant to the Protocol on mutual administrative assistance in customs matters.
Article 104
Customs and other trade related legislation and procedures
Each Party shall ensure that its customs provisions and procedures:
are consistent with international instruments and standards applicable in the area of customs and trade, including the WTO Trade Facilitation Agreement, the substantive elements of the Revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures, the International Convention on the Harmonised Commodity Description and Coding System, as well as the SAFE Framework and the Customs Data Model of the WCO;
provide the protection and facilitation of legitimate trade taking into account the evolution of trade practices through effective enforcement including in case of breaches of its laws and regulations, duty evasion and smuggling and through ensuring compliance with legislative requirements;
are based on legislation that is proportionate and non-discriminatory, avoids unnecessary burdens on economic operators, provides for further facilitation for operators with high levels of compliance including favourable treatment with respect to customs controls prior to the release of goods, and ensures safeguards against fraud and illicit or damageable activities while ensuring a high level of protection of security and safety of citizens and the respect of prohibitions and restrictions and financial interests of the Parties; and
contain rules that ensure that any penalty imposed for breaches of customs regulations or procedural requirements is proportionate and non-discriminatory and that the imposition of such penalties does not result in unjustified delays.
Each Party should periodically review its legislation and customs procedures. Customs procedures should also be applied in a manner that is predictable, consistent and transparent.
In order to improve working methods and to ensure non-discrimination, transparency, efficiency, integrity and the accountability of operations, each Party shall:
simplify and review requirements and formalities wherever possible with a view to ensuring the rapid release and clearance of goods;
work towards the further simplification and standardisation of the data and documentation required by customs and other agencies; and
promote coordination between all border agencies, both internally and across borders, to facilitate border-crossing processes and enhance control, taking into account joint border controls where feasible and appropriate.
Article 105
Release of goods
Each Party shall adopt or maintain customs procedures that:
provide for the prompt release of goods within a period that is no longer than necessary to ensure compliance with its laws and regulations;
provide for advance electronic submission and processing of documentation and any other required information prior to the arrival of the goods, to enable the release of goods promptly upon arrival if no risk has been identified through risk analysis or if no random checks or other checks are to be performed;
provide for the possibility, where appropriate and if the necessary conditions are satisfied, of releasing goods for free circulation at the first point of arrival; and
allow for the release of goods prior to the final determination of customs duties, taxes, fees and charges, if such a determination is not done prior to, or upon arrival, or as rapidly as possible after arrival and provided that all other regulatory requirements have been met.
Article 106
Simplified customs procedures
Each Party shall adopt or maintain measures allowing traders or operators fulfilling criteria specified in its laws and regulations to benefit from further simplification of customs procedures. Such measures may include inter alia:
customs declarations containing a reduced set of data or supporting documents;
periodical customs declarations for the determination and payment of customs duties and taxes covering multiple imports within a given period after the release of those imported goods;
self-assessment of and the deferred payment of customs duties and taxes until after the release of those imported goods; and
the use of a guarantee with a reduced amount or a waiver from the obligation to provide a guarantee.
Article 107
Transit and transhipment
Article 108
Risk management
Article 109
Post-clearance audit
Article 110
Authorised Economic Operators
Article 111
Publication and availability of information
Each Party shall promptly publish new legislation and general procedures related to customs and trade facilitation issues as early as possible prior to the entry into force of any such legislation or procedures, and shall promptly publish any changes to and interpretations of such legislation and procedures. Such publication shall include:
relevant notices of an administrative nature;
importation, exportation and transit procedures (including port, airport, and other entry-point procedures) and required forms and documents;
applied rates of duty and taxes of any kind imposed on or in connection with importation or exportation;
fees and charges imposed by or for governmental agencies on or in connection with importation, exportation or transit;
rules for the classification or valuation of products for customs purposes;
laws, regulations and administrative rulings of general application relating to rules of origin;
import, export or transit restrictions or prohibitions;
penalty provisions against breaches of import, export or transit formalities;
appeal procedures;
agreements or parts thereof with any country or countries relating to importation, exportation or transit;
procedures relating to the administration of tariff quotas;
hours of operation and operating procedures for customs offices at ports and border crossing points; and
points of contact for information enquiries.
Each Party shall make the following available through the internet:
a description of its importation, exportation and transit procedures, including appeal procedures, informing of the practical steps needed to import and export, and for transit;
the forms and documents required for importation into, exportation from, or transit through the territory of that Party; and
contact information regarding enquiry points.
Each party shall ensure that the descriptions, forms, documents and information referred to in points (a), (b) and (c) of the first subparagraph are kept up to date.
Article 112
Advance rulings
Each Party shall publish, at least:
the requirements for applying for an advance ruling, including the information to be provided and the format;
the time period by which it will issue an advance ruling; and
the length of time for which the advance ruling is valid.
Advance rulings shall be issued with regard to:
the tariff classification of goods;
the origin of goods; and
any other matter the Parties may agree upon.
Article 113
Customs brokers
The customs provisions and procedures of a Party shall not require the mandatory use of customs brokers or other agents. Each Party shall publish its measures on the use of customs brokers. Each Party shall apply transparent, non-discriminatory and proportionate rules if and when licensing customs brokers.
Article 114
Pre-shipment inspections
A Party shall not require the mandatory use of pre-shipment inspections as defined in the WTO Agreement on Pre-shipment Inspection, or any other inspection activity performed at destination, by private companies, before customs clearance.
Article 115
Review and appeal
The procedures referred to in paragraph 1 shall include:
an administrative appeal to or review by an administrative authority higher than or independent of the official or office that issued the decision; and
a judicial appeal or review of the decision.
Article 116
Relations with the business community
Article 117
Temporary admission
Each Party shall grant temporary admission, with total conditional relief from import duties and taxes and without application of import restrictions or prohibitions of economic character, as provided for in its laws and regulations, to the following types of goods:
goods for display or use at exhibitions, fairs, meetings or similar events (goods intended for display or demonstration at an event; goods intended for use in connection with the display of foreign products at an event; equipment including interpretation equipment, sound and image recording apparatus and films of an educational, scientific or cultural character intended for use at international meetings, conferences or congresses); products obtained incidentally during the event from temporarily imported goods, as a result of the demonstration of displayed machinery or apparatus;
professional equipment (equipment for the press, for sound or television broadcasting which is necessary for representatives of the press, of broadcasting or television organisations visiting the territory of another country for purposes of reporting, in order to transmit or record material for specified programmes; cinematographic equipment necessary for a person visiting the territory of another country in order to make a specified film or films; any other equipment necessary for the exercise of the calling, trade or profession of a person visiting the territory of another country to perform a specified task, insofar as it is not to be used for the industrial manufacture or packaging of goods or (except in the case of hand tools) for the exploitation of natural resources, for the construction, repair or maintenance of buildings or for earth moving and like projects; ancillary apparatus for the equipment mentioned above, and accessories therefor); component parts imported for repair of professional equipment temporarily admitted;
goods imported in connection with a commercial operation but whose importation does not in itself constitute a commercial operation (packings which are imported filled for re-exportation empty or filled, or are imported empty for re-exportation filled; containers, whether or not filled with goods, and accessories and equipment for temporarily admitted containers, which are either imported with a container to be re-exported separately or with another container, or are imported separately to be re-exported with a container and component parts intended for the repair of containers granted temporary admission; pallets; samples; advertising films; other goods imported in connection with a commercial operation);
goods imported in connection with a manufacturing operation (matrices, blocks, plates, moulds, drawings, plans, models and other similar articles; measuring, controlling and checking instruments and other similar articles; special tools and instruments, imported for use during a manufacturing process); replacement means of production (instruments, apparatus and machines made available to a customer by a supplier or repairer, pending the delivery or repair of similar goods);
goods imported exclusively for educational, scientific or cultural purposes (scientific equipment, pedagogic material, welfare material for seafarers, and any other goods imported in connection with educational, scientific or cultural activities); spare parts for scientific equipment and pedagogic material which has been granted temporary admission; tools specially designed for the maintenance, checking, gauging or repair of such equipment;
personal effects (all articles, new or used, which a traveller may reasonably require for his or her personal use during the journey, taking into account all the circumstances of the journey, but excluding any goods imported for commercial purposes); goods imported for sports purposes (sports requisites and other articles for use by travellers in sports contests or demonstrations or for training in the territory of temporary admission);
tourist publicity material (goods imported for the purpose of encouraging the public to visit another foreign country, in particular in order to attend cultural, religious, touristic, sporting or professional meetings or demonstrations held there);
goods imported for humanitarian purposes (medical, surgical and laboratory equipment and relief consignments, such as vehicles and other means of transport, blankets, tents, prefabricated houses or other goods of prime necessity, forwarded as aid to those affected by natural disaster and similar catastrophes); and
animals imported for specific purposes (dressage, training, breeding, shoeing or weighing, veterinary treatment, testing (for example, with a view to purchase), participation in shows, exhibitions, contests, competitions or demonstrations, entertainment (circus animals, etc.), touring (including pet animals of travellers), exercise of function (police dogs or horses; detector dogs, dogs for the blind, etc.), rescue operations, transhumance or grazing, performance of work or transport, medical purposes (delivery of snake poison, etc.).
Article 118
Single window
Each Party shall endeavour to establish a single window that enables traders to submit documentation or data required for importation, exportation, or transit of goods through a single entry point to the participating authorities or agencies.
Article 119
Facilitation of roll-on, roll-off traffic
The Parties acknowledge:
the right of each Party to adopt trade facilitating customs formalities and procedures for traffic between the Parties within their respective legal frameworks; and
the right of ports, port authorities and operators to act, within the legal orders of their respective Parties, in accordance with their rules and their operating and business models.
To this effect the Parties:
shall adopt or maintain procedures allowing for the submission of import documentation and other required information, including manifests, in order to begin processing prior to the arrival of goods with a view to expediting the release of goods upon arrival; and
undertake to facilitate the use by operators of the transit procedure, including simplifications of the transit procedure as provided for under the Common Transit Convention.
Article 120
Administrative cooperation in VAT and mutual assistance for recovery of taxes and duties
The competent authorities of the Parties shall cooperate with each other to ensure compliance with VAT legislation and in recovering claims relating to taxes and duties in accordance with the Protocol on administrative cooperation and combating fraud in the field of value added tax and on mutual assistance for the recovery of claims relating to taxes and duties.
Article 121
Trade Specialised Committee on Customs Cooperation and Rules of Origin
The Trade Specialised Committee on Customs Cooperation and Rules of Origin shall:
hold regular consultations; and
in relation to the review of the provisions of Annex 18:
jointly validate programme members to identify strengths and weaknesses in implementing Annex 18; and
exchange views on data to be shared and treatment of operators.
The Trade Specialised Committee on Customs Cooperation and Rules of Origin may adopt decisions or recommendations:
on the exchange of customs-related information, on mutual recognition of risk management techniques, risk standards and controls, customs security measures, on advanced rulings, on common approaches to customs valuation and on other issues related to the implementation of this Chapter;
on the arrangements relating to the automatic exchange of information as referred to in Article 10 of the Protocol on mutual administrative assistance in customs matters, and on other issues relating to the implementation of that Protocol;
on any issues relating to the implementation of Annex 18; and
on the procedures for the consultation established in Article 63 and on any technical or administrative matters relating to the implementation of Chapter 2 of this Title, including on interpretative notes aimed at ensuring the uniform administration of the rules of origin.
Article 122
Amendments
The Partnership Council may amend:
Annex 18, the Protocol on mutual administrative assistance in customs matters and the list of goods set out in Article 117(2); and
the Protocol on administrative cooperation and combating fraud in the field of value added tax and on mutual assistance for the recovery of claims relating to taxes and duties.
TITLE II
SERVICES AND INVESTMENT
CHAPTER 1
GENERAL PROVISIONS
Article 123
Objective and scope
This Title does not apply to:
air services or related services in support of air services ( 6 ), other than:
aircraft repair and maintenance services;
computer reservation system services;
ground handling services;
the following services provided using a manned aircraft, subject to compliance with the Parties' respective laws and regulations governing the admission of aircrafts to, departure from and operation within, their territory: aerial fire-fighting; flight training; spraying; surveying; mapping; photography; and other airborne agricultural, industrial and inspection services; and
the selling and marketing of air transport services;
audio-visual services;
national maritime cabotage ( 7 ); and
inland waterways transport.
Article 124
Definitions
For the purposes of this Title, the following definitions apply:
"activities performed in the exercise of governmental authority" means activities which are performed, including services which are supplied, neither on a commercial basis nor in competition with one or more economic operators; ( 8 )
"aircraft repair and maintenance services" means such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service and does not include so-called line maintenance;
"computer reservation system services" means services provided by computerised systems that contain information about air carriers' schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued;
"covered enterprise" means an enterprise in the territory of a Party established in accordance with point (h) by an investor of the other Party, in accordance with the applicable law, existing on the date of entry into force of this Agreement or established thereafter;
"cross-border trade in services" means the supply of a service:
from the territory of a Party into the territory of the other Party; or
in the territory of a Party to the service consumer of the other Party;
"economic activity" means any activity of an industrial, commercial or professional character or activities of craftsmen, including the supply of services, except for activities performed in the exercise of governmental authority;
"enterprise" means a legal person or a branch or a representative office of a legal person;
"establishment" means the setting up or the acquisition of a legal person, including through capital participation, or the creation of a branch or representative office in the territory of a Party, with a view to creating or maintaining lasting economic links;
"ground handling services" means the supply at an airport, on a fee or contract basis, of the following services: airline representation, administration and supervision; passenger handling; baggage handling; ramp services; catering; air cargo and mail handling; fuelling of an aircraft; aircraft servicing and cleaning; surface transport; and flight operations, crew administration and flight planning; ground handling services do not include: self-handling; security; aircraft repair and maintenance; or management or operation of essential centralised airport infrastructure, such as de-icing facilities, fuel distribution systems, baggage handling systems and fixed intra airport transport systems;
"investor of a Party" means a natural or legal person of a Party that seeks to establish, is establishing or has established an enterprise in accordance with point (h) in the territory of the other Party;
"legal person of a Party" ( 9 ) means:
for the Union:
a legal person constituted or organised under the law of the Union or at least one of its Member States and engaged, in the territory of the Union, in substantive business operations, understood by the Union, in line with its notification of the Treaty establishing the European Community to the WTO (WT/REG39/1), as equivalent to the concept of "effective and continuous link" with the economy of a Member State enshrined in Article 54 of the Treaty on the Functioning of the European Union (TFEU); and
shipping companies established outside the Union, and controlled by natural persons of a Member State, whose vessels are registered in, and fly the flag of, a Member State;
for the United Kingdom:
a legal person constituted or organised under the law of the United Kingdom and engaged in substantive business operations in the territory of the United Kingdom; and
shipping companies established outside the United Kingdom and controlled by natural persons of the United Kingdom, whose vessels are registered in, and fly the flag of, the United Kingdom;
"operation" means the conduct, management, maintenance, use, enjoyment, or sale or other form of disposal of an enterprise;
"professional qualifications" means qualifications attested by evidence of formal qualification, professional experience, or other attestation of competence;
"selling and marketing of air transport services" means opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution, but not including the pricing of air transport services nor the applicable conditions;
"service" means any service in any sector except services supplied in the exercise of governmental authority;
"services supplied in the exercise of governmental authority" means any service which is supplied neither on a commercial basis, nor in competition with one or more service suppliers;
"service supplier" means any natural or legal person that seeks to supply or supplies a service;
"service supplier of a Party" means a natural or legal person of a Party that seeks to supply or supplies a service.
Article 125
Denial of benefits
A Party may deny the benefits of this Title and Title IV of this Heading to an investor or service supplier of the other Party, or to a covered enterprise, if the denying Party adopts or maintains measures related to the maintenance of international peace and security, including the protection of human rights, which:
prohibit transactions with that investor, service supplier or covered enterprise; or
would be violated or circumvented if the benefits of this Title and Title IV of this Heading were accorded to that investor, service supplier or covered enterprise, including where the measures prohibit transactions with a natural or legal person which owns or controls any of them.
Article 126
Review
CHAPTER 2
INVESTMENT LIBERALISATION
Article 127
Scope
This Chapter applies to measures of a Party affecting the establishment of an enterprise to perform economic activities and the operation of such an enterprise by:
investors of the other Party;
covered enterprises; and
for the purposes of Article 132, any enterprise in the territory of the Party which adopts or maintains the measure.
Article 128
Market access
A Party shall not adopt or maintain, with regard to establishment of an enterprise by an investor of the other Party or by a covered enterprise, or operation of a covered enterprise, either on the basis of its entire territory or on the basis of a territorial sub-division, measures that:
impose limitations on:
the number of enterprises that may carry out a specific economic activity, whether in the form of numerical quotas, monopolies, exclusive rights or the requirement of an economic needs test;
the total value of transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment; or
the total number of natural persons that may be employed in a particular sector or that an enterprise may employ and who are necessary for, and directly related to, the performance of an economic activity, in the form of numerical quotas or the requirement of an economic needs test; or
restrict or require specific types of legal entity or joint venture through which an investor of the other Party may perform an economic activity.
Article 129
National treatment
The treatment accorded by a Party under paragraph 1 means:
with respect to a regional or local level of government of the United Kingdom, treatment no less favourable than the most favourable treatment accorded, in like situations, by that level of government to investors of the United Kingdom and to their enterprises in its territory; and
with respect to a government of, or in, a Member State, treatment no less favourable than the most favourable treatment accorded, in like situations, by that government to investors of that Member State and to their enterprises in its territory.
Article 130
Most-favoured-nation-treatment
Paragraphs 1 and 2 shall not be construed as obliging a Party to extend to investors of the other Party or to covered enterprises the benefit of any treatment resulting from:
an international agreement for the avoidance of double taxation or other international agreement or arrangement relating wholly or mainly to taxation; or
measures providing for recognition, including the recognition of the standards or criteria for the authorisation, licencing, or certification of a natural person or enterprise to carry out an economic activity, or the recognition of prudential measures as referred to in paragraph 3 of the GATS Annex on Financial Services.
Article 131
Senior management and boards of directors
A Party shall not require a covered enterprise to appoint individuals of any particular nationality as executives, managers or members of boards of directors.
Article 132
Performance requirements
A Party shall not impose or enforce any requirement, or enforce any commitment or undertaking, in connection with the establishment or operation of any enterprise in its territory:
to export a given level or percentage of goods or services;
to achieve a given level or percentage of domestic content;
to purchase, use or accord a preference to goods produced or services provided in its territory or to purchase goods or services from natural or legal persons or any other entities in its territory;
to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such enterprise;
to restrict sales of goods or services in its territory that such enterprise produces or supplies, by relating those sales in any way to the volume or value of its exports or foreign exchange inflows;
to transfer technology, a production process or other proprietary knowledge to a natural or legal person or any other entity in its territory ( 12 );
to supply exclusively from the territory of that Party a good produced or a service supplied by the enterprise to a specific regional or world market;
to locate the headquarters for a specific region of the world which is broader than the territory of the Party or the world market in its territory;
to employ a given number or percentage of natural persons of that Party;
to achieve a given level or value of research and development in its territory;
to restrict the exportation or sale for export; or
with regard to any licence contract in existence at the time the requirement is imposed or enforced, or any commitment or undertaking is enforced, or with regard to any future licence contract freely entered into between the enterprise and a natural or legal person or any other entity in its territory, if the requirement is imposed or enforced or the commitment or undertaking is enforced, in a manner that constitutes direct interference with that licence contract by an exercise of non-judicial governmental authority of a Party, to adopt:
a rate or amount of royalty below a certain level; or
a given duration of the term of a licence contract.
This point does not apply where the licence contract is concluded between the enterprise and the Party. For the purposes of this point, a "licence contract" means any contract concerning the licensing of technology, a production process, or other proprietary knowledge.
A Party shall not condition the receipt or continued receipt of an advantage, in connection with the establishment or operation of an enterprise in its territory, on compliance with any of the following requirements:
achieving a given level or percentage of domestic content;
purchasing, using or according a preference to goods produced or services supplied in its territory, or to purchase goods or services from natural or legal persons or any other entity in its territory;
relating in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with that enterprise;
restricting the sales of goods or services in its territory that that enterprise produces or supplies by relating those sales in any way to the volume or value of its exports or foreign exchange inflows; or
restricting the exportation or sale for export.
Points (f) and (l) of paragraph 1 of this Article do not apply where:
the requirement is imposed or enforced, or the commitment or undertaking is enforced, by a court or administrative tribunal, or by a competition authority pursuant to a Party's competition law to prevent or remedy a restriction or a distortion of competition; or
a Party authorises the use of an intellectual property right in accordance with Article 31 or Article 31bis of the TRIPS Agreement, or adopts or maintains measures requiring the disclosure of data or proprietary information that fall within the scope of, and are consistent with, paragraph 3 of Article 39 of the TRIPS Agreement.
Article 133
Non-conforming measures and exceptions
Articles 128, 129, 130, 131 and 132 do not apply to:
any existing non-conforming measure of a Party at the level of:
for the Union:
the Union, as set out in the Schedule of the Union in Annex 19;
The central government of a Member State, as set out in the Schedule of the Union in Annex 19;
a regional government of a Member State, as set out in the Schedule of the Union in Annex 19; or
a local government, other than that referred to in point (C); and
for the United Kingdom:
the central government, as set out in the Schedule of the United Kingdom in Annex 19;
a regional government, as set out in the Schedule of the United Kingdom in Annex 19;
or
a local government;
the continuation or prompt renewal of any non-conforming measure referred to in point (a) of this paragraph; or
a modification to any non-conforming measure referred to in points (a) and (b) of this paragraph, to the extent that it does not decrease the conformity of the measure, as it existed immediately before the modification, with Article 128, 129, 130, 131 or 132.
CHAPTER 3
CROSS-BORDER TRADE IN SERVICES
Article 134
Scope
This Chapter applies to measures of a Party affecting the cross-border trade in services by service suppliers of the other Party.
Article 135
Market access
A Party shall not adopt or maintain, either on the basis of its entire territory or on the basis of a territorial sub-division, measures that:
impose limitations on:
the number of service suppliers that may supply a specific service, whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;
the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test; or
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 ( 13 ); or
restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service.
Article 136
Local presence
A Party shall not require a service supplier of the other Party to establish or maintain an enterprise or to be resident in its territory as a condition for the cross-border supply of a service.
Article 137
National treatment
Article 138
Most-favoured-nation treatment
Paragraph 1 shall not be construed as obliging a Party to extend to services and service suppliers of the other Party the benefit of any treatment resulting from:
an international agreement for the avoidance of double taxation or other international agreement or arrangement relating wholly or mainly to taxation; or
measures providing for recognition, including of the standards or criteria for the authorisation, licencing, or certification of a natural person or enterprise to carry out an economic activity, or of prudential measures as referred to in paragraph 3 of the GATS Annex on Financial Services.
Article 139
Non-conforming measures
Articles 135, 136, 137 and 138 do not apply to:
any existing non-conforming measure of a Party at the level of:
for the Union:
the Union, as set out in the Schedule of the Union in Annex 19;
the central government of a Member State, as set out in the Schedule of the Union in Annex 19;
a regional government of a Member State, as set out in the Schedule of the Union in Annex 19; or
a local government, other than that referred to in point (C); and
for the United Kingdom:
the central government, as set out in the Schedule of the United Kingdom in Annex 19;
a regional government, as set out in the Schedule of the United Kingdom in Annex 19; or
a local government;
the continuation or prompt renewal of any non-conforming measure referred to in point (a) of this paragraph; or
a modification to any non-conforming measure referred to in points (a) and (b) of this paragraph to the extent that it does not decrease the conformity of the measure, as it existed immediately before the modification, with Articles 135, 136, 137 and 138.
CHAPTER 4
ENTRY AND TEMPORARY STAY OF NATURAL PERSONS FOR BUSINESS PURPOSES
Article 140
Scope and definitions
For the purposes of this Chapter:
"business visitors for establishment purposes" means natural persons working in a senior position within a legal person of a Party, who:
are responsible for setting up an enterprise of such legal person in the territory of the other Party;
do not offer or provide services or engage in any economic activity other than that which is required for the purposes of the establishment of that enterprise; and
do not receive remuneration from a source located within the other Party;
"contractual service suppliers" means natural persons employed by a legal person of a Party (other than through an agency for placement and supply services of personnel), which is not established in the territory of the other Party and has concluded a bona fide contract, not exceeding 12 months, to supply services to a final consumer in the other Party requiring the temporary presence of its employees who:
have offered the same type of services as employees of the legal person for a period of not less than one year immediately preceding the date of their application for entry and temporary stay;
possess, on that date, at least three years professional experience, obtained after having reached the age of majority, in the sector of activity that is the object of the contract, a university degree or a qualification demonstrating knowledge of an equivalent level and the professional qualifications legally required to exercise that activity in the other Party ( 14 ); and
do not receive remuneration from a source located within the other Party;
"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 not established in the territory of the other Party;
have concluded a bona fide contract (other than through an agency for placement and supply services of personnel) for a period not exceeding 12 months to supply services to a final consumer in the other Party, requiring their presence on a temporary basis; and
possess, on the date of their application for entry and temporary stay, at least six years professional experience in the relevant activity, a university degree or a qualification demonstrating knowledge of an equivalent level and the professional qualifications legally required to exercise that activity in the other Party ( 15 );
"intra-corporate transferees" means natural persons, who:
have been employed by a legal person of a Party, or have been partners in it, for a period, immediately preceding the date of the intra-corporate transfer, of not less than one year in the case of managers and specialists and of not less than six months in the case of trainee employees;
at the time of application reside outside the territory of the other Party;
are temporarily transferred to an enterprise of the legal person in the territory of the other Party which is a member of the same group as the originating legal person, including its representative office, subsidiary, branch or head company ( 16 ); and
belong to one of the following categories:
managers ( 17 );
specialists; or
trainee employees;
"manager" means a natural person working in a senior position, who primarily directs the management of the enterprise in the other Party, receiving general supervision or direction principally from the board of directors or from shareholders of the business or their equivalent and whose responsibilities include:
directing the enterprise or a department or subdivision thereof;
supervising and controlling the work of other supervisory, professional or managerial employees; and
having the authority to recommend hiring, dismissing or other personnel-related actions;
"specialist" means a natural person possessing specialised knowledge, essential to the enterprise's areas of activity, techniques or management, which is to be assessed taking into account not only knowledge specific to the enterprise, but also whether the person has a high level of qualification, including adequate professional experience of a type of work or activity requiring specific technical knowledge, including possible membership of an accredited profession; and
"trainee employee" means a natural person possessing a university degree who is temporarily transferred for career development purposes or to obtain training in business techniques or methods and is paid during the period of the transfer. ( 18 )
Article 141
Intra-corporate transferees and business visitors for establishment purposes
Subject to the relevant conditions and qualifications specified in Annex 21:
each Party shall allow:
the entry and temporary stay of intra-corporate transferees;
the entry and temporary stay of business visitors for establishment purposes without requiring a work permit or other prior approval procedure of similar intent; and
the employment in its territory of intra-corporate transferees of the other Party;
a Party shall not maintain or adopt limitations in the form of numerical quotas or economic needs tests regarding the total number of natural persons that, in a specific sector, are allowed entry as business visitors for establishment purposes or that an investor of the other Party may employ as intra-corporate transferees, either on the basis of a territorial subdivision or on the basis of its entire territory; and
each Party shall accord to intra-corporate transferees and business visitors for establishment purposes of the other Party, during their temporary stay in its territory, treatment no less favourable than that it accords, in like situations, to its own natural persons.
Article 142
Short-term business visitors
Subject to the relevant conditions and qualifications specified in Annex 21, each Party shall allow the entry and temporary stay of short-term business visitors of the other Party for the purposes of carrying out the activities listed in Annex 21, subject to the following conditions:
the short-term business visitors are not engaged in selling their goods or supplying services to the general public;
the short-term business visitors do not, on their own behalf, receive remuneration from within the Party where they are staying temporarily; and
the short-term business visitors are not engaged in the supply of a service in the framework of a contract concluded between a legal person that has not established in the territory of the Party where they are staying temporarily, and a consumer there, except as provided for in Annex 21.
Article 143
Contractual service suppliers and independent professionals
In the sectors, subsectors and activities specified in Annex 22 and subject to the relevant conditions and qualifications specified therein:
a Party shall allow the entry and temporary stay of contractual service suppliers and independent professionals in its territory;
a Party shall not adopt or maintain limitations on the total number of contractual service suppliers and independent professionals of the other Party allowed entry and temporary stay, in the form of numerical quotas or an economic needs test; and
each Party shall accord to contractual service suppliers and independent professionals of the other Party, with regard to the supply of their services in its territory, treatment no less favourable than that it accords, in like situations, to its own service suppliers.
Article 144
Non-conforming measures
To the extent that the relevant measure affects the temporary stay of natural persons for business purposes, points (b) and (c) of Article 141(1), Article 142(3) and points (b) and (c) of Article 143(1) do not apply to:
any existing non-conforming measure of a Party at the level of:
for the Union:
the Union, as set out in the Schedule of the Union in Annex 19;
the central government of a Member State, as set out in the Schedule of the Union in Annex 19;
a regional government of a Member State, as set out in the Schedule of the Union in Annex 19; or
a local government, other than that referred to in point (C); and
for the United Kingdom:
the central government, as set out in the Schedule of the United Kingdom in Annex 19;
a regional subdivision, as set out in the Schedule of the United Kingdom in Annex 19; or
a local government;
the continuation or prompt renewal of any non-conforming measure referred to in point (a) of this Article;
a modification to any non-conforming measure referred to in points (a) and (b) of this Article to the extent that it does not decrease the conformity of the measure, as it existed immediately before the modification, with points (b) and (c) of Article 141(1), Article 142(3) and points (b) and (c) of Article 143(1); or
any measure of a Party consistent with a condition or qualification specified in Annex 20.
Article 145
Transparency
The information referred to in paragraph 1 shall, to the extent possible, include the following information relevant to the entry and temporary stay of natural persons:
categories of visa, permits or any similar type of authorisation regarding the entry and temporary stay;
documentation required and conditions to be met;
method of filing an application and options on where to file, such as consular offices or online;
application fees and an indicative timeframe of the processing of an application;
the maximum length of stay under each type of authorisation described in point (a);
conditions for any available extension or renewal;
rules regarding accompanying dependants;
available review or appeal procedures; and
relevant laws of general application pertaining to the entry and temporary stay of natural persons for business purposes.
CHAPTER 5
REGULATORY FRAMEWORK
SECTION 1
DOMESTIC REGULATION
Article 146
Scope and definitions
This Section applies to measures by the Parties relating to licensing requirements and procedures, qualification requirements and procedures, formalities and technical standards that affect:
cross-border trade in services;
establishment or operation; or
the supply of a service through the presence of a natural person of a Party in the territory of the other Party as set out in Article 140.
As far as measures relating to technical standards are concerned, this Section only applies to measures that affect trade in services. For the purposes of this Section, the term "technical standards" does not include regulatory or implementing technical standards for financial services.
This Section does not apply to licensing requirements and procedures, qualification requirements and procedures, formalities and technical standards pursuant to a measure:
that does not conform with Article 128 or 129 and is referred to in points (a) to (c) of Article 133(1) or with Article 135, 136 or 137 and is referred to in points (a) to (c) of Article 139(1) or with points (b) and (c) of Article 141(1), or Article 142(3) or with points (b) and (c) of Article 143(1) and is referred to in Article 144; or
referred to in Article 133(2) or Article 139(2).
For the purposes of this Section, the following definitions apply:
"authorisation" means the permission to carry out any of the activities referred to in points (a) to (c) of paragraph 1 resulting from a procedure a natural or legal person must adhere to in order to demonstrate compliance with licensing requirements, qualification requirements, technical standards or formalities for the purposes of obtaining, maintaining or renewing that permission; and
"competent authority" means a central, regional or local government or authority or non-governmental body in the exercise of powers delegated by central, regional or local governments or authorities, which is entitled to take a decision concerning the authorisation referred to in point (a).
Article 147
Submission of applications
Each Party shall, to the extent practicable, avoid requiring an applicant to approach more than one competent authority for each application for authorisation. If an activity for which authorisation is requested is within the jurisdiction of multiple competent authorities, multiple applications for authorisation may be required.
Article 148
Application timeframes
If a Party requires authorisation, it shall ensure that its competent authorities, to the extent practicable, permit the submission of an application at any time throughout the year. If a specific time period for applying for authorisation exists, the Party shall ensure that the competent authorities allow a reasonable period of time for the submission of an application.
Article 149
Electronic applications and acceptance of copies
If a Party requires authorisation, it shall ensure that its competent authorities:
to the extent possible provide for applications to be completed by electronic means, including from within the territory of the other Party; and
accept copies of documents, that are authenticated in accordance with the Party's domestic law, in place of original documents, unless the competent authorities require original documents to protect the integrity of the authorisation process.
Article 150
Processing of applications
If a Party requires authorisation, it shall ensure that its competent authorities:
process applications throughout the year. Where that is not possible, this information should be made public in advance, to the extent practicable;
to the extent practicable, provide an indicative timeframe for the processing of an application. That timeframe shall be reasonable to the extent practicable;
at the request of the applicant, provide without undue delay information concerning the status of the application;
to the extent practicable, ascertain without undue delay the completeness of an application for processing under the Party's domestic laws and regulations;
if they consider an application complete for the purposes of processing under the Party's domestic laws and regulations, ( 19 ) within a reasonable period of time after the submission of the application ensure that:
the processing of the application is completed; and
the applicant is informed of the decision concerning the application, to the extent possible, in writing; ( 20 )
if they consider an application incomplete for the purposes of processing under the Party's domestic laws and regulations, within a reasonable period of time, to the extent practicable:
inform the applicant that the application is incomplete;
at the request of the applicant identify the additional information required to complete the application or otherwise provide guidance on why the application is considered incomplete; and
provide the applicant with the opportunity to provide the additional information that is required to complete the application; ( 21 )
however, if none of the actions referred to in points (i), (ii) and (iii) is practicable, and the application is rejected due to incompleteness, the competent authorities shall ensure that they inform the applicant within a reasonable period of time; and
if an application is rejected, either upon their own initiative or upon request of the applicant, inform the applicant of the reasons for rejection and of the timeframe for an appeal against that decision and, if applicable, the procedures for resubmission of an application; an applicant shall not be prevented from submitting another application solely on the basis of a previously rejected application.
Article 151
Fees
Article 152
Assessment of qualifications
If a Party requires an examination to assess the qualifications of an applicant for authorisation, it shall ensure that its competent authorities schedule such an examination at reasonably frequent intervals and provide a reasonable period of time to enable applicants to request to take the examination. To the extent practicable, each Party shall accept requests in electronic format to take such examinations and shall consider the use of electronic means in other aspects of examination processes.
Article 153
Publication and information available
If a Party requires authorisation, the Party shall promptly publish the information necessary for persons carrying out or seeking to carry out the activities referred to in Article 146(1) for which the authorisation is required to comply with the requirements, formalities, technical standards and procedures for obtaining, maintaining, amending and renewing such authorisation. Such information shall include, to the extent it exists:
the licensing and qualification requirements and procedures and formalities;
contact information of relevant competent authorities;
authorisation fees;
applicable technical standards;
procedures for appeal or review of decisions concerning applications;
procedures for monitoring or enforcing compliance with the terms and conditions of licences or qualifications;
opportunities for public involvement, such as through hearings or comments; and
indicative timeframes for the processing of an application.
For the purposes of this Section, "publish" means to include in an official publication, such as an official journal, or on an official website. Parties shall consolidate electronic publications into a single online portal or otherwise ensure that competent authorities make them easily accessible through alternative electronic means.
Article 154
Technical standards
Each Party shall encourage its competent authorities, when adopting technical standards, to adopt technical standards developed through open and transparent processes, and shall encourage any body, including relevant international organisations, designated to develop technical standards to do so through open and transparent processes.
Article 155
Conditions for authorisation
The criteria referred to in paragraph 1 shall be:
clear and unambiguous;
objective and transparent;
pre-established;
made public in advance;
impartial; and
easily accessible.
If a Party adopts or maintains a measure relating to authorisation, it shall ensure that:
the competent authority concerned processes applications, and reaches and administers its decisions, objectively and impartially and in a manner independent of the undue influence of any person carrying out the economic activity for which authorisation is required; and
the procedures themselves do not prevent fulfilment of the requirements.
Article 156
Limited numbers of licences
If the number of licences available for a given activity is limited because of the scarcity of available natural resources or technical capacity, a Party shall apply a selection procedure to potential candidates which provides full guarantees of impartiality, objectivity and transparency, including, in particular, adequate publicity about the launch, conduct and completion of the procedure. In establishing the rules for the selection procedure, a Party may take into account legitimate policy objectives, including considerations of health, safety, the protection of the environment and the preservation of cultural heritage.
SECTION 2
PROVISIONS OF GENERAL APPLICATION
Article 157
Review procedures for administrative decisions
A Party shall maintain judicial, arbitral or administrative tribunals or procedures which provide, on request of an affected investor or service supplier of the other Party, for the prompt review of, and if justified appropriate remedies for, administrative decisions that affect establishment or operation, cross-border trade in services or the supply of a service through the presence of a natural person of a Party in the territory of the other Party. For the purposes of this Section, "administrative decisions" means a decision or action with a legal effect that applies to a specific person, good or service in an individual case and covers the failure to take an administrative decision or take such action when that is so required by a Party's law. If such procedures are not independent of the competent authority entrusted with the administrative decision concerned, a Party shall ensure that the procedures in fact provide for an objective and impartial review.
Article 158
Professional qualifications
The professional bodies or authorities, which are relevant for the sector of activity concerned in their respective territories, may develop and provide joint recommendations on the recognition of professional qualifications to the Partnership Council. Such joint recommendations shall be supported by an evidence-based assessment of:
the economic value of an envisaged arrangement on the recognition of professional qualifications; and
the compatibility of the respective regimes, that is, the extent to which the requirements applied by each Party for the authorisation, licensing, operation and certification are compatible.
SECTION 3
DELIVERY SERVICES
Article 159
Scope and definitions
For the purposes of this Section, the following definitions apply:
"delivery services" means postal services, courier services, express delivery services or express mail services, which include the following activities: the collection, sorting, transport, and delivery of postal items;
"express delivery services" means the collection, sorting, transport and delivery of postal items at accelerated speed and reliability and may include value added elements such as collection from point of origin, personal delivery to the addressee, tracing, possibility of changing the destination and addressee in transit or confirmation of receipt;
"express mail services" means international express delivery services supplied through the EMS Cooperative, which is the voluntary association of designated postal operators under Universal Postal Union (UPU);
"licence" means an authorisation that a regulatory authority of a Party may require of an individual supplier in order for that supplier to offer postal or courier services;
"postal item" means an item up to 31.5 kg addressed in the final form in which it is to be carried by any type of supplier of delivery services, whether public or private and may include items such as a letter, parcel, newspaper or catalogue;
"postal monopoly" means the exclusive right to supply specified delivery services within a Party's territory or a subdivision thereof pursuant to the law of that Party; and
"universal service" means the permanent supply of a delivery service of specified quality at all points in the territory of a Party or a subdivision thereof at affordable prices for all users.
Article 160
Universal service
Article 161
Universal service funding
A party shall not impose fees or other charges on the supply of a delivery service that is not a universal service for the purposes of funding the supply of a universal service. This Article does not apply to generally applicable taxation measures or administrative fees.
Article 162
Prevention of market distortive practices
Each party shall ensure that suppliers of delivery services subject to a universal service obligation or postal monopolies do not engage in market distortive practices such as:
using revenues derived from the supply of the service subject to a universal service obligation or from a postal monopoly to cross-subsidise the supply of an express delivery service or any delivery service which is not subject to a universal service obligation; or
unjustifiably differentiating between consumers with respect to tariffs or other terms and conditions for the supply of a service subject to a universal service or a postal monopoly.
Article 163
Licences
If a Party requires a licence for the provision of delivery services, it shall make publicly available:
all the licensing requirements 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 164
Independence of the regulatory body
SECTION 4
TELECOMMUNICATIONS SERVICES
Article 165
Scope
This Section applies to measures of a Party affecting the supply of telecommunications services in addition to Chapters 1, 2, 3 and 4 of this Title, and to Sections 1 and 2 of this Chapter.
Article 166
Definitions
For the purposes of this Section, the following definitions apply:
"associated facilities" means associated services, physical infrastructure and other facilities or elements associated with a telecommunications network or telecommunications service which enable or support the supply of services via that network or service or have the potential to do so;
"end user" means a final consumer of, or subscriber to, a public telecommunications service, including a service supplier other than a supplier of public telecommunications services;
"essential facilities" means facilities of a public telecommunications network or a public telecommunications service that:
are exclusively or predominantly provided by a single or limited number of suppliers; and
cannot feasibly be economically or technically substituted in order to provide a service;
"interconnection" means the linking of public telecommunications networks used by the same or different suppliers of telecommunications networks or telecommunications services in order to allow the users of one supplier to communicate with users of the same or another supplier or to access services provided by another supplier, irrespective of whether those services are provided by the suppliers involved or any other supplier who has access to the network;
"international mobile roaming service" means a commercial mobile service provided pursuant to a commercial agreement between suppliers of public telecommunications services that enables an end user to use its home mobile handset or other device for voice, data or messaging services while outside the territory in which the end user's home public telecommunications network is located;
"internet access service" means a public telecommunications service that provides access to the internet and thereby connectivity to virtually all end points of the internet, irrespective of the network technology and terminal equipment used;
"leased circuit" means telecommunications services or facilities, including those of a virtual nature, that set aside capacity for the dedicated use by, or availability to, a user between two or more designated points;
"major supplier" means a supplier of telecommunications networks or telecommunications services which has the ability to materially affect the terms of participation, having regard to price and supply, in a relevant market for telecommunications networks or telecommunications services as a result of control over essential facilities or the use of its position in that market;
"network element" means a facility or equipment used in supplying a telecommunications service, including features, functions and capabilities provided by means of that facility or equipment;
"number portability" means the ability of subscribers who so request to retain the same telephone numbers, at the same location in the case of a fixed line, without impairment of quality, reliability or convenience when switching between the same category of suppliers of public telecommunications services;
"public telecommunications network" means any telecommunications network used wholly or mainly for the provision of public telecommunications services which supports the transfer of information between network termination points;
"public telecommunications service" means any telecommunications service that is offered to the public generally;
"subscriber" means any natural or legal person which is party to a contract with a supplier of public telecommunications services for the supply of such services;
"telecommunications" means the transmission and reception of signals by any electromagnetic means;
"telecommunications network" means transmission systems and, where applicable, switching or routing equipment and other resources, including network elements which are not active, which permit the transmission and reception of signals by wire, radio, optical, or other electromagnetic means;
"telecommunications regulatory authority" means the body or bodies charged by a Party with the regulation of telecommunications networks and telecommunications services covered by this Section;
"telecommunications service" means a service which consists wholly or mainly in the transmission and reception of signals, including broadcasting signals, over telecommunications networks, including those used for broadcasting, but not a service providing, or exercising editorial control over, content transmitted using telecommunications networks and telecommunications services;
"universal service" means the minimum set of services of specified quality that must be made available to all users, or to a set of users, in the territory of a Party, or in a subdivision thereof, regardless of their geographical location and at an affordable price; and
"user" means any natural or legal person using a public telecommunications service.
Article 167
Telecommunications regulatory authority
Each Party shall establish or maintain a telecommunications regulatory authority that:
is legally distinct and functionally independent from any supplier of telecommunications networks, telecommunications services or telecommunications equipment;
uses procedures and issues decisions that are impartial with respect to all market participants;
acts independently and does not seek or take instructions from any other body in relation to the exercise of the tasks assigned to it by law to enforce the obligations set out in Articles 169, 170, 171, 173 and 174;
has the regulatory power, as well as adequate financial and human resources, to carry out the tasks mentioned in point (c) of this Article;
has the power to ensure that suppliers of telecommunications networks or telecommunications services provide it, promptly upon request, with all the information ( 25 ), including financial information, which is necessary to enable it to carry out the tasks mentioned in point (c) of this Article; and
exercises its powers transparently and in a timely manner.
Article 168
Authorisation to provide telecommunications networks or services
Article 169
Interconnection
Each Party shall ensure that a supplier of public telecommunications networks or public telecommunications services has the right and, when so requested by another supplier of public telecommunications networks or public telecommunications services, the obligation to negotiate interconnection for the purposes of providing public telecommunications networks or public telecommunications services.
Article 170
Access and use
Each Party shall ensure that covered enterprises or service suppliers of the other Party have access to and use of any public telecommunications network or public telecommunications service offered within or across its border, including private leased circuits, and to that end shall ensure, subject to paragraph 5, that such enterprises and suppliers are permitted:
to purchase or lease and attach terminal or other equipment which interfaces with the network and which is necessary to conduct their operations;
to interconnect private leased or owned circuits with public telecommunications networks or with circuits leased or owned by another covered enterprise or service supplier; and
to use the operating protocols of their choice in their operations, other than as necessary to ensure the availability of telecommunications services to the public generally.
Each Party shall ensure that no condition is imposed on access to and use of public telecommunications networks or services other than as necessary:
to safeguard the public service responsibilities of suppliers of public telecommunications networks or public telecommunications services, in particular their ability to make their services available to the public generally; or
to protect the technical integrity of public telecommunications networks or services.
Article 171
Resolution of telecommunications disputes
Article 172
Competitive safeguards on major suppliers
Each Party shall introduce or maintain appropriate measures for the purpose of preventing suppliers of telecommunications networks or telecommunications services who, alone or together, are a major supplier from engaging in or continuing anti-competitive practices. These anti-competitive practices shall include in particular:
engaging in anti-competitive cross-subsidisation;
using information obtained from competitors with anti-competitive results; and
not making available to other service suppliers on a timely basis technical information about essential facilities and commercially relevant information which are necessary for them to provide services.
Article 173
Interconnection with major suppliers
Each Party shall ensure that major suppliers of public telecommunications networks or public telecommunications services provide interconnection at any technically feasible point in the network. Such interconnection shall be provided:
under non-discriminatory terms and conditions (including as regards rates, technical standards, specifications, quality and maintenance) and of a quality no less favourable than that provided for the own like services of such major supplier, or for like services of its subsidiaries or other affiliates;
in a timely fashion, on terms and conditions (including as regards rates, technical standards, specifications, quality and maintenance) that are transparent, reasonable, having regard to economic feasibility, and sufficiently unbundled so that the supplier need not pay for network elements or facilities that it does not require for the service to be provided; and
upon request, at points in addition to the network termination points offered to the majority of users, subject to charges that reflect the cost of construction of necessary additional facilities.
Article 174
Access to major suppliers' essential facilities
Each Party shall ensure that major suppliers in its territory make their essential facilities available to suppliers of telecommunications networks or telecommunications services on reasonable, transparent and non-discriminatory terms and conditions for the purpose of providing public telecommunications services, except where this is not necessary to achieve effective competition on the basis of the facts collected and the assessment of the market conducted by the telecommunications regulatory authority. The major supplier's essential facilities may include network elements, leased circuits services and associated facilities.
Article 175
Scarce resources
Article 176
Universal service
Article 177
Number portability
Each Party shall ensure that suppliers of public telecommunications services provide number portability on reasonable terms and conditions.
Article 178
Open internet access
Each Party shall ensure that, subject to its laws and regulations, suppliers of internet access services enable users of those services to:
access and distribute information and content, use and provide applications and services of their choice, subject to non-discriminatory, reasonable, transparent and proportionate network management; and
use devices of their choice, provided that such devices do not harm the security of other devices, the network or services provided over the network.
Article 179
Confidentiality of information
Article 180
Foreign shareholding
With regard to the provision of telecommunications networks or telecommunications services through establishment and notwithstanding Article 133, a Party shall not impose joint venture requirements or limit the participation of foreign capital in terms of maximum percentage limits on foreign shareholding or the total value of individual or aggregate foreign investment.
Article 181
International mobile roaming ( 28 )
Parties may choose to take steps to enhance transparency and competition with respect to international mobile roaming rates and technological alternatives to roaming services, such as:
ensuring that information regarding retail rates is easily accessible to end users; and
minimising impediments to the use of technological alternatives to roaming, whereby end users visiting the territory of a Party from the territory of the other Party can access telecommunications services using the device of their choice.
SECTION 5
FINANCIAL SERVICES
Article 182
Scope
For the purposes of this Section, the term "activities performed in the exercise of governmental authority" referred to in point (f) of Article 124 means the following ( 29 ):
activities conducted by a central bank or a monetary authority or by any other public entity in pursuit of monetary or exchange rate policies;
activities forming part of a statutory system of social security or public retirement plans; and
other activities conducted by a public entity for the account or with the guarantee or using the financial resources of the Party or its public entities.
Article 183
Definitions
For the purposes of this Title, the following definitions apply:
"financial service" means any service of a financial nature offered by a financial service supplier of a Party and includes the following activities:
insurance and insurance-related services:
direct insurance (including co-insurance):
life;
non-life;
reinsurance and retrocession;
insurance intermediation, 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; and
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; and
advisory, intermediation and other auxiliary financial services on all the activities listed in points (A) to (K), 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 legal person of a Party that seeks to supply or supplies financial services and does not include a public entity;
"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;
"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;
"self-regulatory organisation" means any non-governmental body, including a securities or futures exchange or market, clearing agency, other organisation or association, that exercises regulatory or supervisory authority over financial service suppliers by statute or delegation from central, regional or local governments or authorities, where applicable.
Article 184
Prudential carve-out
Nothing in this Agreement shall prevent a Party from adopting or maintaining measures for prudential reasons ( 30 ), such as:
the protection of investors, depositors, policy-holders or persons to whom a fiduciary duty is owed by a financial service supplier; or
ensuring the integrity and stability of a Party's financial system.
Article 185
Confidential information
Without prejudice to Part Three, nothing in this Agreement shall be construed to require a Party to disclose information relating to the affairs and accounts of individual consumers or any confidential or proprietary information in the possession of public entities.
Article 186
International standards
The Parties shall make their best endeavours to ensure that internationally agreed standards in the financial services sector for regulation and supervision, for the fight against money laundering and terrorist financing and for the fight against tax evasion and avoidance, are implemented and applied in their territory. Such internationally agreed standards are, inter alia, those adopted by: the G20; the Financial Stability Board; the Basel Committee on Banking Supervision, in particular its "Core Principle for Effective Banking Supervision"; the International Association of Insurance Supervisors, in particular its "Insurance Core Principles"; the International Organisation of Securities Commissions, in particular its "Objectives and Principles of Securities Regulation"; the Financial Action Task Force; and the Global Forum on Transparency and Exchange of Information for Tax Purposes of the Organisation for Economic Cooperation and Development.
Article 187
Financial services new to the territory of a Party
Article 188
Self-regulatory organisations
Where a Party requires membership of, participation in, or access to, any self-regulatory organisation in order for financial service suppliers of the other Party to supply financial services in its territory, the Party shall ensure observance by that self-regulatory organisation of the obligations under Articles 129, 130, 137 and 138.
Article 189
Clearing and payment systems
Under 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 does not confer access to the Party's lender of last resort facilities.
SECTION 6
INTERNATIONAL MARITIME TRANSPORT SERVICES
Article 190
Scope and definitions
For the purposes of this Section and Chapters 1, 2, 3 and 4 of this Title, the following definitions apply:
"international maritime transport services" means the transport of passengers or cargo by sea-going vessels between a port of one Party and a port of the other Party or of a third country, or between ports of different Member States, including the direct contracting with providers of other transport services, with a view to covering door-to-door or multimodal transport operations under a single transport document, but does not include the right to provide such other transport services;
"door-to-door or multimodal transport operations" means the transport of international cargo using more than one mode of transport, that includes an international sea-leg, under a single transport document;
"international cargo" means cargo transported between a port of one Party and a port of the other Party or of a third country, or between ports of different Member States;
"maritime auxiliary services" means maritime cargo handling services, customs clearance services, container station and depot services, maritime agency services, maritime freight forwarding services and storage and warehousing services;
"maritime cargo handling services" means activities exercised by stevedore companies, including terminal operators but not including the direct activities of dockers if the workforce is organised independently of the stevedoring or terminal operator companies; the activities covered include the organisation and supervision of:
loading or discharging of cargo to or from a ship;
the lashing or unlashing of cargo; and
the reception or delivery and safekeeping of cargoes before shipment or after discharge;
"customs clearance services" means activities consisting in carrying out, on behalf of another party, customs formalities concerning import, export or through transport of cargoes, irrespective of whether these services are the main activity of the service supplier or a usual complement of its main activity;
"container station and depot services" means activities that consist of storing, stuffing, stripping or repairing of containers and making containers available for shipment, whether in port areas or inland;
"maritime agency services" means activities that consist of 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, issuance of bills of lading on behalf of the lines or companies, acquisition and resale of the necessary related services, preparation of documentation and provision of business information; and
acting on behalf of the lines or companies organising the call of the ship or taking over cargoes when required;
"feeder services" means, without prejudice to the scope of activities that may be considered cabotage under the relevant national legislation, the pre- and onward transportation by sea of international cargo, including containerised, break bulk and dry or liquid bulk cargo, between ports located in the territory of a Party, provided such international cargo is "en route", that is, directed to a destination, or coming from a port of shipment, outside the territory of that Party;
"maritime freight forwarding services" means the activity consisting of organising and monitoring shipment operations on behalf of shippers, through the arrangement of transport and related services, preparation of documentation and provision of business information;
"port services" means services provided inside a maritime port area or on the waterway access to such area by the managing body of a port, its subcontractors, or other service providers to support the transport of cargo or passengers; and
"storage and warehousing services" means storage services of frozen or refrigerated goods, bulk storage services of liquids or gases, and other storage or warehousing services.
Article 191
Obligations
Without prejudice to non-conforming measures or other measures referred to in Articles 133 and 139, each Party shall implement the principle of unrestricted access to the international maritime markets and trades on a commercial and non-discriminatory basis by:
according 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 with regard to, inter alia:
access to ports;
the use of port infrastructure;
the use of maritime auxiliary services; and
customs facilities and the assignment of berths and facilities for loading and unloading, including related fees and charges;
making available to international maritime transport service suppliers of the other Party, on terms and conditions which are both reasonable and no less favourable than those applicable to its own suppliers or vessels or to vessels or suppliers of a third country (including fees and charges, specifications and quality of the service to be provided), the following port services: pilotage, towing and tug assistance, provisioning, fuelling and watering, garbage collecting and ballast waste disposal, port captain's services, navigation aids, emergency repair facilities, anchorage, berth, berthing and unberthing services and shore-based operational services essential to ship operations, including communications, water and electrical supplies;
permitting international maritime transport service suppliers of the other Party, subject to the authorisation by the competent authority where applicable, to re-position owned or leased empty containers, which are not being carried as cargo against payment, between ports of the United Kingdom or between ports of a Member State; and
permitting international maritime transport service suppliers of the other Party to provide feeder services between ports of the United Kingdom or between ports of a Member State, subject to the authorisation by the competent authority where applicable.
In applying the principle referred to in paragraph 1, a Party shall:
not introduce cargo-sharing arrangements in future agreements with third countries concerning international 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;
not adopt or maintain a measure that requires all or part of any international cargo to be transported exclusively by vessels registered in that Party or owned or controlled by natural persons of that Party;
abolish and abstain from introducing any unilateral measures or administrative, technical and other obstacles which could constitute a disguised restriction or have discriminatory effects on the free supply of international maritime transport services; and
not prevent international maritime transport service suppliers of the other Party from directly contracting with other transport service suppliers for door-to-door or multimodal transport operations.
SECTION 7
LEGAL SERVICES
Article 192
Scope
Article 193
Definitions
For the purposes of this Section, the following definitions apply:
"designated legal services" means legal services in relation to home jurisdiction law and public international law, excluding Union law;
"home jurisdiction" means the jurisdiction (or a part of the jurisdiction) of the Member State or of the United Kingdom in which a lawyer acquired their home jurisdiction professional title or, in the case of a lawyer who has acquired a home jurisdiction professional title in more than one jurisdiction, any of those jurisdictions;
"home jurisdiction law" means the law of the lawyer's home jurisdiction ( 31 );
"home jurisdiction professional title" means:
for a lawyer of the Union, a professional title acquired in a Member State authorising the supply of legal services in that Member State; or
for a lawyer of the United Kingdom, the title of advocate, barrister or solicitor, authorising the supply of legal services in any part of the jurisdiction of the United Kingdom;
"lawyer" means:
a natural person of the Union who is authorised in a Member State to supply legal services under a home jurisdiction professional title; or
a natural person of the United Kingdom who is authorised in any part of the jurisdiction of the United Kingdom to supply legal services under a home jurisdiction professional title;
"lawyer of the other Party" means:
where "the other Party" is the Union, a lawyer referred to in point (e)(i); or
where "the other Party" is the United Kingdom, a lawyer referred to in point (e)(ii); and
"legal services" means the following services:
legal advisory services; and
legal arbitration, conciliation and mediation services (but excluding such services when supplied by natural persons as set out in Article 140). ( 32 )
"Legal services" do not include legal representation before administrative agencies, the courts, and other duly constituted official tribunals of a Party, legal advisory and legal authorisation, documentation and certification services supplied by legal professionals entrusted with public functions in the administration of justice such as notaries, "huissiers de justice" or other "officiers publics et ministériels", and services supplied by bailiffs who are appointed by an official act of government.
Article 194
Obligations
Where a Party (the "host jurisdiction") requires registration in its territory as a condition for a lawyer of the other Party to supply designated legal services pursuant to paragraph 1, the requirements and process for such registration shall not:
be less favourable than those which apply to a natural person of a third country who is supplying legal services in relation to third country law or public international law under that person's third country professional title in the territory of the host jurisdiction; and
amount to or be equivalent to any requirement to requalify into or be admitted to the legal profession of the host jurisdiction.
Article 195
Non-conforming measures
Article 194 does not apply to:
any existing non-conforming measure of a Party at the level of:
for the Union:
the Union, as set out in the Schedule of the Union in Annex 19;
the central government of a Member State, as set out in the Schedule of the Union in Annex 19;
a regional government of a Member State, as set out in the Schedule of the Union in Annex 19; or
a local government, other than that referred to in point (C); and
for the United Kingdom:
the central government, as set out in the Schedule of the United Kingdom in Annex 19;
a regional government, as set out in the Schedule of the United Kingdom in Annex 19; or
a local government;
the continuation or prompt renewal of any non-conforming measure referred to in point (a) of this paragraph; or
a modification to any non-conforming measure referred to in points (a) and (b) of this paragraph to the extent that it does not decrease the conformity of the measure, as it existed immediately before the modification, with Article 194.
TITLE III
DIGITAL TRADE
CHAPTER 1
GENERAL PROVISIONS
Article 196
Objective
The objective of this Title is to facilitate digital trade, to address unjustified barriers to trade enabled by electronic means and to ensure an open, secure and trustworthy online environment for businesses and consumers.
Article 197
Scope
Article 198
Right to regulate
The Parties reaffirm the right to regulate within their territories to achieve legitimate policy objectives, such as the protection of public health, social services, public education, safety, the environment including climate change, public morals, social or consumer protection, privacy and data protection, or the promotion and protection of cultural diversity.
Article 199
Exceptions
For greater certainty, nothing in this Title prevents the Parties from adopting or maintaining measures in accordance with Articles 184, 412 and 415 for the public interest reasons set out therein.
Article 200
Definitions
For the purposes of this Title, the following definitions apply:
"consumer" means any natural person using a public telecommunications service for other than professional purposes;
"direct marketing communication" means any form of commercial advertising by which a natural or legal person communicates marketing messages directly to a user via a public telecommunications service and covers at least electronic mail and text and multimedia messages (SMS and MMS);
"electronic authentication" means an electronic process that enables the confirmation of:
the electronic identification of a natural or legal person, or
the origin and integrity of data in electronic form;
"electronic registered delivery service" means a service that makes it possible to transmit data between third parties by electronic means and provides evidence relating to the handling of the transmitted data, including proof of sending and receiving the data, and that protects transmitted data against the risk of loss, theft, damage or any unauthorised alterations;
"electronic seal" means data in electronic form used by a legal person which is attached to or logically associated with other data in electronic form to ensure the latter's origin and integrity;
"electronic signature" means data in electronic form which is attached to or logically associated with other data in electronic form that:
is used by a natural person to agree on the data in electronic form to which it relates; and
is linked to the data in electronic form to which it relates in such a way that any subsequent alteration in the data is detectable;
"electronic time stamp" means data in electronic form which binds other data in electronic form to a particular time establishing evidence that the latter data existed at that time;