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The Preamble sets out the philosophical underpinnings of the Agreement. The four countries seek to enlarge their relations through liberalising trade and investment and encouraging cooperation to create a strategic partnership in the Asia-Pacific region. They recognise that economic development, social development and environment protection are interdependent and mutually reinforcing (as is also promoted through the parallel Agreement on Environment Cooperation and Memorandum of Understanding on Labour Cooperation). They aim to establish clear rules governing their trade; build on their rights, obligations and undertakings under the WTO; affirm their commitment to APEC goals; enhance their international competitiveness; and foster creativity and innovation.
The four governments preserve the right to regulate in order to meet national policy objectives, and to safeguard public welfare.
This chapter sets out the agreed objectives of the Agreement, which include supporting wider liberalisation within APEC, encouraging trade expansion, diversification and liberalisation, promoting conditions of fair competition in the free trade area, increasing investment opportunities, protecting intellectual property rights and creating effective dispute settlement.
The parties agree to establish a free trade area, consistent with the WTO Agreements, the General Agreement on Tariffs and Trade (GATT) and General Agreement on Trade in Services (GATS).
Definitions are listed here if they are used in more than one Chapter in the Agreement.
Contains definitions specific to each country, including nationality and territory.
Terms relevant only to the Chapter on Trade in Goods are defined.
This Chapter applies to trade in all goods between the four countries.
The four countries will give national treatment to each other’s goods. The national treatment obligation means that imports from another Party must be treated no less favourably than the same or similar domestically produced goods once they have passed Customs.
Each country’s market access schedule setting out its tariff elimination timetables are contained in Annex I.
Customs duties between Singapore and New Zealand are already at zero as agreed under the New Zealand/Singapore Closer Economic Partnership (NZSCEP).
Brunei’s market access schedule will be completed by June 2005.
The Parties cannot increase existing customs duties. The Parties may also consult on accelerating tariff elimination.
Customs duties will not be applied to a good re-entered after temporary export for repair or alteration, provided that these processes do not create a different good or transform an unfinished good into a finished good.
With the exception of liquor and tobacco products, commercial samples of negligible value and printed advertising materials will be granted duty-free entry.
Duty free entry will be granted for temporary entry of professional equipment (including media and IT equipment), display or demonstration goods, commercial samples and goods for sports purposes.
Except where allowed by WTO rules or under other provisions of the Agreement, no country will take measures to restrict imports or exports between them. Otherwise permitted measures are set out in Annex 3.A.
Any fees, charges, formalities and requirements related to importation or exportation of goods must be consistent with WTO obligations. Consular transaction fees cannot be required.
Parties cannot impose an export duty or tax, unless the same is applied to domestic goods.
The four countries share the objective of eliminating agricultural export subsides, and agree to eliminate and not re-introduce any such subsidies on trade between them.
Chile is allowed to maintain its price band system, for a specified limited number of products, but has to give the other Parties no less favourable treatment than any third country, including those with which it has a FTA. Under Article 18.2 in the General Provisions chapter, this system has to be applied in a WTO consistent manner.
Chile is allowed to apply a special (quantity based) safeguard, on a specified number of dairy products that are listed in Annex 3.B. The safeguard can only apply during the period of tariff elimination, and ends once duty free trade is achieved. Any additional duty cannot exceed the base rate (6%), and can only be maintained until the end of a half-year period. The safeguard measure has to be applied in a transparent manner, including advance notice and consultation, and possible review by the Committee on Trade in Goods. Annex 3.B also provides the volumes of trade above which the safeguard measure is triggered. The initial figures have been calculated based on average imports between 2002-04 plus 20%. Each year from entry into force of the Agreement these volumes will grow by 8%.
The Parties may establish a Committee on Trade in Goods to consider and make recommendations on any matters arising from the agreement, including barriers to trade and possible future acceleration of tariff elimination.
This is a special exemption to the provisions in the goods chapter, whereby Chile may impose non-tariff barriers on imports on used vehicles.
This annex lists the product lines that will be subject to the special safeguard measure and the quantity-based trigger levels for each product.
Terms relevant only to the Chapter on Rules of Origin are defined.
The rules of origin determine which goods qualify as originating goods and therefore receive tariff preference under the Agreement.
The rules of origin relating to each good are set out in Annex II.
Originating goods of a country are those that: (a) are wholly obtained or produced in the country; (b) are produced in one or more of the Parties from originating input materials; (c) are produced in one or more of the Parties, using non-originating materials but which result in a change in tariff classification, a regional value content, or other requirements specified in the Chapter.
For most of this agreement the rules of origin are change of tariff classification (CTC) methodology. For some products, however, there are additional regional value content (RVC) rules, where the product must meet CTC plus an additional RVC requirement. For others, CTC and RVC are alternatives. For products subject to Outward Processing (see Article 14.2), only RVC rules apply.
The formula for calculating regional value content (RVC) is provided in this article.
The change of tariff classification requirement is not met if the goods have only undergone minimal processing such as freezing, cutting or repacking.
Goods or materials originating in one Party and used in the production of goods in another, shall be considered to originate in the latter.
Where a good does not involve a change in tariff classification, it can still qualify as originating under the Agreement if non-originating materials do not exceed 10% of the good’s value.
If the operative rules of origin is CTC, these items will be treated as originating goods, subject to conditions. However, if goods are subject to RVC requirements, the value of any accessories, spare parts and tools used in their manufacture shall be taken into account as originating or non-originating materials as the case may be.
Packaging materials and containers for retail sale and for transport will be disregarded in determining change of tariff classification, but not for calculating regional value content.
Indirect materials, such as fuel, energy, tools, dies, are considered to be originating materials.
Goods under the Agreement can transit through third countries for up to 6 months, and still qualify for preferential tariff treatment provided they do not undergo other operations or enter the commerce of these third countries.
This provision allows intermediate processing in a third country provided the material is returned to the same producer, the last process of manufacture takes place in the Party concerned, and the total value of non-originating materials does not exceed 55%. The list of products eligible for being considered under the Outward Processing provisions are listed in Annex 4.B.
In order to qualify for preferential access under the agreement, the producer or exporter must complete either a "Declaration of Origin" or "Certificate of Origin" stating which country the invoiced goods originate from. The exporter or producer may choose which form they would like to fill out.
The templates for these certificates are in Annex 4.C and Annex 4.D.
The importing country shall grant preferential tariff treatment where sufficient documentation is provided. Importers may apply for refund of excess customs duties paid where such documentation is provided within one year of importation.
Exporters can correct erroneous or false information. Each Party shall provide penalties for false declarations, certification or documentation.
Each Party shall require producers, exporters, and importers in their country to keep all records in relation to exports and imports for which preference has been claimed for at least 3 years, or longer, if required by their domestic legislation.
The importing Party can verify claims made for tariff preference, including by requesting a visit to the premises of the exporter or producer. Customs administrations will facilitate requests for assistance in verification.
Preferential tariff treatment can be denied if the goods do not meet the requirements of this Chapter, or if the exporter fails to respond fully to questions or a visit.
In the case that preferential entry is denied, the importing Party will provide full reasons in writing for its decision.
Ordinary costs of verification will be borne by the requested Party, or by the Party, which visits an exporter. Extraordinary costs will be resolved by mutual agreement.
This annex contains a list of goods which are considered to be “remanufactured goods” if conditions are met, and, are thereby deemed to originate.
This lists the specific products that are eligible for the provisions relating to “Outward Processing” in Article 4.12.
The exporter or producer declares that the product originates from Brunei Darussalam, Chile, New Zealand or Singapore, in accordance with Article 4.13.
A more detailed form where the exporter or producer provides details about the product and verifies that its origin meets the conditions of Chapter 4 and therefore qualifies for preferential access under the Agreement.
Definitions relevant only to the Customs Procedures Chapter are listed.
The Chapter aims to ensure predictability, consistency and transparency in application of customs procedures, efficient and economical administration for quick clearance of goods, facilitation of trade, simplified procedures and cooperation between customs administrations.
The Chapter applies to customs procedures for clearing goods traded between the four countries.
Each country will maintain customs procedures that are predictable, consistent, transparent, facilitate trade, and reflect international standards. Customs procedures will be reviewed periodically with a view to simplification.
The Customs administrations agree to cooperate on issues relating to originating goods pertaining to the: implementation of the chapter; movement of goods; investigation and prevention of customs offences; improving procedures; technical skills and technology; the application of the WTO Customs Valuation Agreement; and additional assistance in respect of other matters.
If a Party provides information to another Party, the other Party will maintain the confidentiality of that information.
When determining the value of goods, the four countries will comply with the relevant WTO rules.
The countries have committed to provide procedures for advanced rulings on the origin of goods traded between the Parties. Application for a ruling can be made prior to a good being imported.
Importers in each country will have access to independent administrative and judicial reviews.
The Customs administrations of the Parties will encourage consultation with each other on significant issues affecting trade in goods.
Each country will endeavour to provide electronic procedures that support business transactions.
Each country will ensure efficient clearance of all shipments, and adopt procedures to expedite express consignments.
Each country will maintain penalties for violations of its customs laws.
Customs procedures should facilitate clearance of low-risk goods and focus on high-risk goods.
Procedures should allow goods to be released within 48 hours and at the point of arrival.
Each country must designate an enquiry point.
Nothing in this chapter requires a country to disclose confidential information that would: be contrary to the public interest; be contrary to domestic legislation; impede law enforcement; or prejudice the competitive position of the person providing the information.
Each Party retains its WTO rights and obligations in respect of global safeguard actions. Parties are to provide curtesy advice of any initiated safeguard investigation.
Each Party retains its rights and obligations under the relevant WTO provisions.
Outlines definitions used in the Chapter.
The Chapter aims to uphold the WTO SPS Agreement and other international standards, to facilitate bilateral trade and strengthen cooperation and collaboration while protecting human, animal or plant life or health, and to establish a mechanism for recognising equivalence of SPS measures.
The Chapter applies to all SPS measures that affect trade between the four countries.
Nothing in this chapter or implementing arrangements will limit the rights or obligations of the Parties under the WTO SPS Agreement.
A committee will be established to review the implementation of the SPS Chapter, explore opportunities for cooperation and collaboration and to establish technical working groups.
The committee also has responsibility for Implementing Arrangements that set out the jointly determined undertakings for the application of the Chapter. A list of the different types of Implementing Arrangements are set out in this article.
The contact points in each country responsible for implementing this Chapter and for making notifications are set out in Implementing Arrangement 1.
This article sets out the procedures for seeking recognition of disease or pest free status. Once a Party’s disease or pest free status has been recognised, an importing country will effectively accept that the exporting Party has the capacity to manage associated risks including the management of any outbreak of the pest or disease.
This article sets out a process for the determination of equivalence, whereby an importing country recognises that sanitary or phytosanitary measures of an exporting country are equivalent to the importing Party’s appropriate level of protection.
This recognition must follow a process established in Implementing Arrangement 8 (Equivalence Procurements for Determination), including assessment and acceptance of legislation, standards and procedures, and the structure of the competent authority and their performance in relation to control and assurance programmes.
Implementing Arrangement 4 (Recognition of Measures) lists the instances where equivalence has been recognised or specifically not been recognised.
When equivalence is not recognised, trade shall take place under the current conditions required by the importing country.
Unless otherwise agreed, official SPS certificates are required for each consignment of animals, animal products, plants, plant products or other related goods.
Each country has the right to carry out audit and verification of the procedures of the exporting country for the purposes of implementing SPS measures. The audit and verification will be carried out in accordance with the provisions of Implementing Arrangement 5.
Each country also has the right to carry out import checks as set out in the article below.
Import checks shall be based on the risk associated with importations, carried out without undue delay and with minimum effect on trade. Where the checks reveal non-conformity with relevant standards, the action taken by the importing country should be based on an assessment of the risk involved.
The countries will notify each other, through the contact points, of significant changes in SPS health status, scientific finds of importance, and any additional measures beyond basic SPS measures. In cases of serious and immediate concern with respect to human, animal or plant health, Parties are to be notified immediately, and consultation shall take place on request. Where import consignments do not comply on SPS grounds, the exporting Party should be notified as soon as possible.
If there is a serious problem in relation to public, animal or plant life or health, any country can take provisional measures necessary to ensure protection. In doing so, the other countries must be notified within one day, and requested consultations must be held within 13 days.
The four countries will exchange information on SPS measures and developments.
Parties may request technical consultations to resolve issues on the application of the SPS Chapter. The SPS committee may facilitate these consultations. Such consultations are without prejudice to dispute settlement under the Agreement or WTO.
The four countries will explore opportunities for cooperation on SPS matters.
Sets out definitions of terms used in this Chapter.
The objective is to increase and facilitate trade through supporting WTO and APEC work on standards and conformance, eliminating unnecessary technical barriers to trade in goods, enhancing cooperation between regulatory agencies, and providing a framework to address the impact of technical barriers to trade.
The Chapter applies to standards, technical regulations and conformity assessment procedures that affect trade in goods. The countries retain the right to take measures necessary to ensure national security, prevention of deceptive practices, protection of human health or safety, animal or plant life or health, or the environment.
This chapter does not apply to technical specifications used to procure goods under the scope of the government procurement chapter or to sanitary and phytosanitary measures under the SPS chapter.
The Parties affirm their rights and obligations under the WTO TBT Agreement.
The Chapter applies to all goods traded among the countries regardless of their origin. There is provision for applying different technical regulations for goods from third countries imported via one of the four Parties to avoid costly surveillance requirements, provided the regulations are WTO consistent.
The four countries will intensify joint work on standards, technical regulations and conformity assessment procedures with a view to facilitating access to each other’s market. This may include harmonisation or equivalence of technical regulations and standards.
The Parties will where possible use international standards as a basis for technical regulations and conformity assessment.
The countries are encouraged to accept each other’s technical regulations as equivalent.
This Article makes provision for conformity assessment procedures (i.e. a procedure to ensure a product meets the appropriate standard or regulation of the other country) to be made compatible to the greatest extent practicable. Parties are encouraged to accept the results of each other’s conformity assessment procedures. Where these are not accepted, an explanation must be provided.
Where a Party makes a notification to the WTO under the TBT Agreement of a new technical regulation, it will notify the other Parties at the same time to maximise the time available to comment on proposed new technical regulations.
A Committee on Technical Barriers to Trade is established to implement and monitor the operation of the TBT Chapter, including identifying priority sectors for cooperation and establishing work programmes, as well as addressing issues that may arise. Scope for consultations is provided. A country should notify the others if it takes a measure to manage an immediate risk to health, safety or the environment.
A Party may request technical consultations to resolve any matter arising under this chapter. The TBT committee may facilitate these consultations. Such consultations are without prejudice to dispute settlement under the Agreement or WTO.
Under this chapter the Parties may negotiate Annexes or Implementing Arrangements that are aimed at harmonising or recognising the equivalence of principles and procedures relating to technical regulations and conformity assessment. These will help facilitate trade among the countries.
The Parties recognise the importance of creating open and competitive markets that promote economic efficiency and consumer welfare. They aim to reduce impediments to trade and investment through non-discriminatory application of competition statutes, and to avoid the benefits of trade liberalisation being undermined by anti-competitive behaviour.
Each country will maintain competition laws, focus on anti-competitive agreements, and maintain a competition authority responsible for enforcement. Persons subject to sanction should have legal recourse. Competition law applies to all commercial activities, except where a country excludes these on grounds of public policy or public interest.
The four countries are encouraged to cooperate on competition policy and competition law enforcement.
Each country will notify the others of an enforcement activity regarding an anti-competitive business conduct which may affect them or which takes place in their territory.
On request, the countries will consult on issues adversely affecting their competitive interests for trade and investment. Exchange of information will be kept confidential, and the other countries will be notified if information has to be disclosed.
The countries are permitted to designate or maintain public or private monopolies according to their laws. Where special or exclusive rights have been granted, these should not distort trade in goods or services.
A country cannot challenge a decision of a competition authority in another country, or have recourse to the Agreement’s dispute settlement in respect of competition issues.
This Annex contains a list of measures or sectors that are exempted from the application of each Party’s general competition law and which may affect the benefits of the agreement. It does not include exemptions from each Party's competition law that are covered in other chapters of the agreement. Only New Zealand and Singapore list exemptions in this Annex. Chile has indicated that it does not have any relevant exemptions.
