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Korea-Singapore Free Trade Agreement (KSFTA) |
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FREE TRADE AGREEMENT BETWEEN
THE GOVERNNMENT OF THE REPUBLIC OF KOREA AND THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE
The Government of the Republic of Korea (“Korea”) and the Government of the
Republic of Singapore (“Singapore”), hereinafter referred to as “the Parties”;
Conscious of their bonds of longstanding friendship and strong trade and investment relationship;
Recalling the establishment of a Joint Study Group to examine the benefits of a Free Trade Agreement between the Government of the Republic of Korea and the Government of the Republic of Singapore (“Korea-Singapore FTA”) in October 2002;
Desiring to adopt the recommendations in the Joint Study Group Report that the Parties proceed to negotiate the Korea-Singapore FTA, and that the Joint Study Group Report should serve as a framework for negotiations on the FTA;
Reaffirming their commitment to securing trade liberalisation and an outward-looking approach to trade and investment;
Convinced that their economic integration would generate larger economies of scale, provide greater work opportunities, and enhance transparency for economic activities for their businesses as well as for other businesses in Asia;
Sharing the belief that a free trade agreement between the Parties would improve their attractiveness to capital and human resources, and create larger and new markets, to expand trade and investment not only between them but also in the region;
Affirming their commitment to fostering the development of open market economy in Asia, and to encouraging economic integration of Asian economies in order to further the liberalisation of trade and investment in the region;
Reaffirming that this Agreement shall contribute to the expansion and development of world trade under the multilateral trading system embodied in the Marrakesh Agreement Establishing the World Trade Organization (“the WTO Agreement”);
Building on their respective rights and obligations under the WTO Agreement and other multilateral, regional and bilateral instruments of co-operation; and
Resolved to promote reciprocal trade and investment, and to avoid circumvention of benefits of regional trade integration, through the establishment of clear and mutually advantageous trade rules, and industry as well as regulatory co-operation;
HAVE AGREED as follows:
CHAPTER 1
GENERAL PROVISIONS
ARTICLE 1.1 : ESTABLISHMENT OF FREE TRADE AREA
The Parties to this Agreement, consistent with Article XXIV of GATT 1994 and
Article V of GATS, hereby establish a free trade area in accordance with the provisions
of this Agreement.
ARTICLE 1.2 : OBJECTIVES
The objectives of this Agreement, as elaborated more specifically through its principles and rules, including national treatment, most-favoured-nation treatment and transparency, are to:
(a) liberalise and facilitate trade in goods and services and expand investment between the Parties;
(b) establish a co-operative framework for strengthening the economic relations between the Parties;
(c) establish a framework conducive for a more favourable environment for their
businesses and promote conditions of fair competition in the free trade area;
(d) establish a framework of transparent rules to govern trade and investment between the Parties;
(e) create effective procedures for the implementation and application of this
Agreement; and
(f) establish a framework for further regional and multilateral co-operation to expand and enhance the benefits of this Agreement throughout Asia, and thereby, to encourage economic integration of Asian economies.
ARTICLE 1.3 : RELATION TO OTHER AGREEMENTS
a view to finding a mutually satisfactory solution, taking into consideration general principles of international law.
ARTICLE 1.4 : REFERENCE TO OTHER AGREEMENTS
GATS includes the interpretative notes, where applicable.
CHAPTER 2
GENERAL DEFINITIONS
For the purposes of this Agreement, unless otherwise specified: Agreement means this free trade agreement between the Parties; APEC means the Asia-Pacific Economic Co-operation;
citizen means:
(a) with respect to Korea, a Korean as defined in Article 2 of the Constitution of
the Republic of Korea and its domestic laws; and
(b) with respect to Singapore, any person who is a citizen within the meaning of its Constitution and domestic laws;
Custom Valuation Agreement means the Agreement on Implementation of Article VII
of the General Agreement on Tariff and Trade 1994, which is part of the WTO Agreement;
days means calendar days including weekends and holidays;
enterprise means any corporation, company, association, partnership, trust, joint venture, sole-proprietorship or other legally recognised entity that is duly incorporated, constituted, set up, or otherwise duly organised under the law of a Party, including branches, regardless of whether or not the entity is organised for pecuniary gain, privately or otherwise owned, or organised with limited or unlimited liability;
existing means in effect at the time of entry into force of this Agreement;
GATS means the General Agreement on Trade in Services, which is a part of the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, which is a part
of the WTO Agreement;
Generally Accepted Accounting Principles means the recognised consensus or substantial authoritative support in the territory of a Party with respect to the recording
of revenues, expenses, costs, assets and liabilities, the disclosure of information and the preparation of financial statements. These standards may encompass broad guidelines of general application as well as detailed standards, practices and procedures;
Harmonized System (HS) means the Harmonized Commodity Description and Coding
System, including its General Rules of Interpretation, Section Notes and Chapter Notes;
measure means any law, regulation, procedure or administrative action, requirement or practice;
national means a natural person who is a citizen or permanent resident of a Party;
permanent resident means any person who has the right of permanent residence in the territory of a Party;
person means a natural person or an enterprise;
person of a Party means a national or an enterprise of a Party;
territory means:
(a) with respect to Korea, the land, maritime, and air space under its sovereignty, and those maritime areas, including the seabed and subsoil adjacent to the outer limit of the territorial sea over which it exercises sovereign rights or jurisdiction in accordance with international law and its domestic law; and
(b) with respect to Singapore, its land territory and airspace above in accordance
with international law, internal waters and territorial sea as well as the maritime zones beyond the territorial sea, including the seabed and subsoil, over which the Republic of Singapore exercises sovereign rights or jurisdiction under its national laws and international law for the purpose of exploration and exploitation of the natural resources of such areas; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade
Organization, done on April 15, 1994.
CHAPTER 3
NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
ARTICLE 3.1 : DEFINITIONS
For the purposes of this Chapter:
other duties or charges means any duty or charge of any kind, except customs duty, imposed on or in connection with the importation of goods of the other Party, but does not include any:
(a) duty imposed pursuant to Chapter 6 (Trade Remedies);
(b) charge equivalent to an internal tax imposed consistently with Article III:2 of
GATT 1994;
(c) fee or other charge in connection with importation commensurate with the cost of services rendered;
(d) premium offered or collected on an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions, tariff rate quotas or tariff preference levels; or
(e) duty imposed pursuant to Article 5 of the WTO Agreement on Agriculture.
ARTICLE 3.2 : SCOPE AND COVERAGE
This Chapter shall be applied to the trade in goods between the Parties.
ARTICLE 3.3 : NATIONAL TREATMENT
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994. To this end, Article III of GATT 1994 is incorporated into and made part of this Agreement.
ARTICLE 3.4 : TARIFF ELIMINATION
eliminate its customs duties and other duties or charges on originating goods of the other Party in accordance with its Tariff Elimination Schedule set out in Annex 3A.
ARTICLE 3.5 : CUSTOMS VALUATION
The Parties shall apply Article VII of GATT 1994 and the provisions of Part I of the Customs Valuation Agreement for the purposes of determining the customs value of goods traded between the Parties.
ARTICLE 3.6 : EXPORT DUTY
Neither Party shall adopt or maintain any duties on goods exported from its territory into the territory of the other Party.
ARTICLE 3.7 : GOODS RE-ENTERED AFTER REPAIR OR PROCESS
In accordance with its domestic laws and regulations, each Party may exempt or reduce a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been exported or if it was under a temporary exit from its territory to the territory of the other Party for repair or process, regardless of whether such repair or process could be performed in its territory.
ARTICLE 3.8 : IMPORT AND EXPORT RESTRICTIONS
importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with rights and obligations under the WTO Agreement, or except as otherwise provided in this Agreement.
ARTICLE 3.9 : CUSTOMS USER FEES
Customs user fees shall be limited in amount to the approximate cost of services rendered and shall not represent an indirect protection for domestic products or a taxation of imports or exports for fiscal purposes. They shall be based on specific rates that correspond to the real value of the service rendered.
ARTICLE 3.10 BALANCE OF PAYMENT EXCEPTION
or threat thereof, it may, in accordance with GATT 1994 and the Understanding on the Balance-of-Payments Provisions of GATT 1994, adopt restrictive import measures. The relevant provisions of GATT 1994 and the Understanding on the Balance-of-Payments Provisions of GATT 1994 are hereby incorporated into and made part of the Agreement.
Party.
CHAPTER 4
RULES OF ORIGIN
‘
ARTICLE 4.1 : DEFINITIONS
For the purposes of this Chapter:
customs value means:
(a) the price actually paid or payable for a good or material with respect to a transaction of the seller of the good, pursuant to the principles of Article 1 of the Customs Valuation Agreement, adjusted in accordance with Article 8 of the Customs Valuation Agreement; or
(b) in the event that there is no such value or such value of the good is unascertainable, the value determined in accordance with Articles 2 through 7
of the Customs Valuation Agreement;
F.O.B. means free on board value of a good payable by the buyer to the seller, regardless of the mode of transportation, not including any internal excise taxes reduced, exempted, or repaid when the good is exported;
fungible goods or materials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical;
good means any merchandise, product, article or material;
goods wholly obtained or produced entirely in the territory of one or both of the
Parties means:
(a) mineral goods extracted there;
(b) plants and plant products grown and harvested, picked or gathered there;
(c) live animals born and raised there;
(d) goods obtained from hunting or trapping conducted there;
(e) goods obtained from fishing within the outer limit of the territorial sea of one
or both of the parties;
(f) products of sea-fishing and other products taken from the sea outside of the territorial sea of one or both of the Parties by vessels registered or recorded with a Party and flying its flag;
(g) goods produced on board factory ships from the goods referred to in paragraph (f), provided such factory ships are registered or recorded with one
of the Parties and flying its flag;
(h) goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that the Party has rights to exploit such seabed;
(i) goods taken from outer space, provided that they are obtained by a Party or a
person of a Party and not processed in the territory of a non-Party;
(j) waste and scrap derived from:
(i) production there; or
(ii) used goods collected there, provided that such goods are fit only for the recovery of raw materials; and
(k) goods produced in the territory of one or both of the Parties exclusively from goods referred to in paragraphs (a), (b), (c), (d), (e), (f), (g), (h), (i) and (j),
or from their derivatives, at any stage of production;
intermediate material means a material that is self-produced and used in the production of a good, and designated pursuant to Article 4.7;
material means a good that is used in the production of another good and physically incorporated into the good;
non-originating good or non-originating material means a good or material that does not qualify as originating under this Chapter;
originating material means a material that qualifies as originating under Article 4.2;
packing materials and containers for shipment means goods used to protect a good during its transportation, different from those containers or materials used for its individual sale;
producer means a person who grows, mines, raises, harvests, fishes, reproduces and breeds, traps, hunts, manufactures, processes, assembles or disassembles a good;
production means method of obtaining goods including growing, raising, mining, harvesting, fishing, reproducing and breeding, trapping, hunting, manufacturing, processing, assembling or disassembling a good;
used means used or consumed in the production of goods; and
value of materials means:
(a) except in the case of packing materials and containers for shipment, for the purposes of calculating the regional value content of a good and for the purposes of applying the De Minimis rule, the value of a material that is used
in the production of a good shall:
(i) for a material that is imported by the producer of the good, be the customs value of the material with respect to the importation including the costs of freight, insurance, packing and all other costs incurred in the international shipment of that material to the location of the producer,
if not included;
(ii) for a material purchased in the territory where the good is produced, be the producer's price actually paid or payable for the material including the costs of freight, insurance, packing and all other costs incurred in transporting the material to the location of the producer, if not included; and
(iii) for an intermediate material, be determined by computing the sum of:
(A) all costs incurred in the production of the material, including general expenses; and
(B) an amount for profit;
(b) for the value of non-originating materials, the following expenses may be deducted from the value of the material:
(i) the duties, taxes and customs brokerage fees on the materials paid in the territory of one or more of the Parties, other than the duties and
taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duties or taxes paid or payable;
(ii) inland transportation costs incurred to transport the materials to the local producer;
(iii) the costs of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by- product; and
(iv) the cost of originating materials used in the production of the non- originating material in the territory of a Party.
ARTICLE 4.2 : ORIGINATING GOODS
(a) wholly obtained or produced entirely in the territory of one or both of the
Parties;
(b) that has satisfied the requirements specified in Annex 4A as well as other applicable requirements under this Chapter as a result of the production occurring entirely in the territory of one or both of the Parties;
(c) otherwise provided as an originating good under this Chapter; or
(d) produced entirely in the territory of one or both of the Parties exclusively from originating materials pursuant to this Chapter.
ARTICLE 4.3 : TREATMENT OF CERTAIN GOODS
Chapter.
ARTICLE 4.4 : OUTWARD PROCESSING
to the Party, provided that:
(a) the total value of non-originating inputs as set out in paragraph 2 does not exceed forty (40) per cent of the customs value of the final good for which originating status is claimed;
(b) the value of originating materials is not less than forty-five (45) per cent of
the customs value of the final good for which originating status is claimed;
(c) the materials exported from a Party shall have been wholly obtained or produced in the Party or have undergone there processes of production or operation going beyond the non-qualifying operations in Article 4.16, prior to being exported outside the territory of the Party;
(d) the producer of the exported material and the producer of the final good for which originating status is claimed are the same;
(e) the re-imported good has been obtained through the processes of production
or operation of the exported material; and
(f) the last process of production or operation4-1 takes place in the territory of the
Party.
be the value of any non-originating materials added in a Party as well as the value of any materials added and all other costs accumulated outside the territory of the Party, including transportation cost.
4-1 The last process of production or operation does not exclude the non-qualifying operations stipulated
in Article 4.16
ARTICLE 4.5 : REGIONAL VALUE CONTENT
When a regional value content is required to determine an originating good, the regional value content of a good shall be calculated on the basis of the following method:
CV - VNM
RVC = ---------------------- x 100
CV
where
ARTICLE 4.6 : UNASSEMBLED OR DISASSEMBLED GOODS
A good that is imported into the territory of a Party in an unassembled or disassembled form but is classified as an assembled good pursuant to the provisions of sub-paragraph (a) of paragraph 2 of the General Rule for the Interpretation of the Harmonized System shall be considered as an originating good, if the good meets the requirements of Article 4.2.
ARTICLE 4.7 : INTERMEDIATE MATERIALS
Any self-produced material that is used in the production of a good may be designated by the producer of the good as an intermediate material for the purpose of calculating the regional value content of the good under Article 4.5, provided that where
the intermediate material is subject to a regional value content requirement, no other self-produced material subject to a regional value content requirement used in the production of that intermediate material may itself be designated by the producer as an intermediate material.
ARTICLE 4.8 : NEUTRAL ELEMENTS
In order to determine whether a good originates it shall not be necessary to determine the origin of the following which might be used in its production and not incorporated into the good:
(a) fuel and energy;
(b) tools, dies and moulds;
(c) spare parts and materials used in the maintenance of equipment and buildings;
(d) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings;
(e) gloves, glasses, footwear, clothing, safety equipment and supplies;
(f) equipment, devices and supplies used for testing or inspecting the goods; and
(g) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.
ARTICLE 4.9 : ACCUMULATION
a good in the territory of the other Party, shall be considered to originate in the territory
of the other Party.
ARTICLE 4.10 : DE MINIMIS
shall be considered as originating if:
(a) the value of all non-originating materials used in its production that do not undergo the required change in tariff classification does not exceed ten (10) per cent of the customs value of the good; and
(b) the good meets all other applicable criteria set forth in this Chapter for
qualifying as an originating good.
The value of such non-originating materials shall, however, be included in the value of non-originating materials for any applicable regional value content requirement for the good.
(a) a non-originating material used in the production of a good provided for in
Chapters 1 through 14 of the Harmonized System; and
(b) a non-originating material used in the production of a good provided for in Chapters 15 through 24 of the Harmonized System unless the non-originating material is provided for in a different subheading from that of the good for which the origin is being determined under this Article.
ARTICLE 4.11 : FUNGIBLE GOODS AND MATERIALS
of any of the inventory management method, such as averaging, last-in, first-out, or first
in, first-out, recognised in the Generally Accepted Accounting Principles of a Party in which the production is performed or otherwise accepted by the Party in which the production is performed.
ARTICLE 4.12 : ACCESSORIES, SPARE PARTS AND TOOLS
(a) the accessories, spare parts or tools are not invoiced separately from the good;
and
(b) the quantities and value of the accessories, spare parts or tools are customary for the good.
ARTICLE 4.13 : PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE
Packaging materials and containers in which a good is packaged for retail sale shall, if classified with the good, be disregarded in determining whether all the non- originating materials used in the production of the good undergo the applicable change
in tariff classification set out in Annex 4A, and, if the good is subject to a regional value
content requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
ARTICLE 4.14 : PACKING MATERIALS AND CONTAINERS FOR SHIPMENT
Packing materials and containers in which a good is packed for shipment shall be disregarded in determining whether:
(a) the non-originating materials used in the production of the good undergo an applicable change in tariff classification set out in Annex 4A; and
(b) the good satisfies a regional value content requirement.
ARTICLE 4.15 : DIRECT CONSIGNMENT
A good shall not be considered to be an originating good of a Party by reason of having undergone production that satisfies the requirements of Article 4.2, if, subsequent to that production:
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(a)
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the good is not transported directly to the territory of the other Party;
or
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(b)
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where the good is shipped through or transshipped in the
territory of
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a
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country that is not a Party under this Agreement, the importer has failed to
meet the requirements stipulated in paragraph (c) of Article 5.9.
ARTICLE 4.16 : NON-QUALIFYING OPERATIONS
Notwithstanding any provision in this Chapter, a good shall not be considered to have satisfied the requirements for an originating good in Article 4.2 merely by reason
of going through certain operations or processes including, inter alia, the following :
(a) operations to ensure the preservation of products in good condition during transport and storage (such as drying, freezing, keeping in brine) and other similar operations;
(b) changes of packaging and breaking up and assembly of packages;
(c) affixing marks, labels and other like distinguishing signs on products or their packaging;
(d) disassembly;
(e) testing or calibrations;
(f) placing in bottles, cases, boxes and other simple packaging operations;
(g) simple cutting, including peeling, unshelling or unflaking, grain removing, removal of bones, crushing or squeezing, and macerating;
(h) simple mixing;
(i) simple assembly of parts to constitute a complete product;
(j) simple making-up of sets of articles;
(k) slaughter of animals;
(l) quality check or grinding;
(m) elimination of dust from broken or damaged parts, application of oil, paint for rust treatment or other protecting materials;
(n) salifying or sweetening;
(o) dilution with water or with any other aqueous, ionized or salted solution;
(p) division of bulk shipment; and
(q) a combination of two or more operations referred to in paragraphs (a) through
(p) ,
carried out in the territory of the Parties, when non-originating materials are used
in those operations.
ARTICLE 4.17 : INTERPRETATION AND APPLICATION
For the purposes of this Chapter:
(a) the basis for tariff classification in this Chapter is the Harmonised System as amended on January 1, 2002;
(b) in applying the Customs Valuation Agreement for the determination of the origin of a good under this Chapter:
(i) the principles of the Customs Valuation Agreement shall apply to domestic transactions, with such modifications as may be required by the circumstances, as would apply to international transactions;
(ii) the provisions of this Chapter shall take precedence over the Customs
Valuation Agreement to the extent of any difference; and
(iii) the definitions in Article 4.1 shall take precedence over the definitions in the Customs Valuation Agreement to the extent of any difference; and
(c) all costs referred to in this Chapter shall be recorded and maintained in accordance with the Generally Accepted Accounting Principles applicable i
n the territory of the Party in which the good is produced.
ARTICLE 4.18 : CONSULTATIONS AND MODIFICATIONS
CHAPTER 5
CUSTOMS PROCEDURES
ARTICLE 5.1 : DEFINITIONS
For the purposes of this Chapter:
certificate of origin means respective forms used for purposes of claiming preferential tariff treatment in the importing Party, certifying that an exported good qualifies as an originating good in accordance with Chapter 4 (Rules of Origin), on the basis of documentary evidence or reliable information;
certification body means a body referred to in Annex 5A;
customs administration means the competent authority that is responsible under the law of a Party for the administration of customs laws and regulations;
exporter means a person located in the territory of a Party from where a good is exported by such a person;
importer means a person located in the territory of a Party where a good is imported by such a person;
identical goods means "identical goods" as defined in the Customs Valuation
Agreement;
producer is as defined in Article 4.1;
production is as defined in Article 4.1;
Cost and Production Statement means a declaration made by the producer, in the calculation of the regional value content, the HS tariff classifications of the product and
its non-originating material used, to determine the originating status of the good. The declaration should be signed by a designated authority, generally the managing director
or accountant of the company. The declaration may be made by the importer or exporter,
if he or she has pertinent information to the production of the good. Notwithstanding the above, the producer shall not be required to provide the information to the importer or the exporter;
value means value of a good or material for purposes of calculating customs duties or for purposes of applying Chapter 4 (Rules of Origin);
Declaration for Preference means an application for claiming preferential tariff treatment declared, on the basis of a certificate of origin or any other documentary evidence of origin, by an importer to the customs administration as part of the import application that an imported good qualifies as an originating good in accordance with Chapter 4.
ARTICLE 5.2 : CERTIFICATE OF ORIGIN
in Annex 5B and Annex 5C, which may be revised by agreement between the Parties.
of issue.
(a) require an exporter in its territory to complete and sign an application for certificate of origin for any good which an importer may claim preferential tariff treatment on importation of the good into the territory of the other Party; and
(b) provide that where an exporter in its territory is not the producer of the good,
the exporter may complete and sign an application for a certificate of origin on the basis of:
(i) the exporter’s knowledge that the good qualifies as an originating
good; or
(ii) the exporter’s reasonable reliance on the producer’s written representation that the good qualifies as an originating good.
or soon thereafter due to involuntary errors or omissions or other valid causes, the certificate of origin may be issued retrospectively but not later than one year from the date of shipment.
ARTICLE 5.3 : CLAIMS FOR PREFERENTIAL TREATMENT
(a) make a declaration for preference as part of the import application prescribed by its legislation, based on importer’s knowledge or information including a valid certificate of origin, that the good qualifies as an originating good;
(b) submit the certificate of origin or other documentary evidence of origin at
the time of the declaration referred to in subparagraph (a), to its customs administration upon request; and
(c) promptly make a corrected declaration and pay any duties owing, where the
importer has reason to believe that a certificate of origin on which a declaration was based contains information that is incorrect.
treatment only in cases where an importer proves the accuracy of origin of the imported goods through documentary evidence or any other relevant information in accordance with its laws and regulations.
(a) the importer had, at the time of importation, indicated to the customs administration of the importing Party his intention to claim preferential tariff treatment; and
(b) the certificate of origin or other documentary evidence of origin is submitted
to its customs administration within such period from the date of payment of customs duties in accordance with the domestic laws and regulations in the importing Party.
ARTICLE 5.4 : OBLIGATIONS RELATING TO EXPORTATIONS
a copy of the certificate of origin or other documentary evidence of origin to its customs administration upon request.
ARTICLE 5.5 : RECORD KEEPING REQUIREMENT
(a) the purchase of, cost of, value of, shipping of, and payment for, the good that
is exported from its territory;
(b) the sourcing of, the purchase of, cost of, value of, and payment for, all materials, including neutral elements, used in the production of the good that
is exported from its territory; and
(c) the production of the good in the form in which the good is exported from its territory.
a good imported into the Party's territory shall maintain in that territory, for five (5) years after the date of importation of the good or for such longer period as the Party may specify, such documentation, including a copy of the certificate of origin, as the Party may require relating to the importation of the good.
ARTICLE 5.6 : WAIVER OF CERTIFICATE OF ORIGIN
(a) an importation of a good whose aggregate customs value does not exceed USD 1,000 or its equivalent amount in the Party’s currency, or such higher amount as it may establish; or
(b) an importation of a good into the territory of the importing Party, for which
the importing Party has waived the requirement for a certificate of origin in accordance with its domestic laws and practices;
provided that the importation does not form part of one or more importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the certification requirements of Articles 5.2 and 5.3.
ARTICLE 5.7 : VERIFICATIONS FOR PREFERENTIAL TARIFF TREATMENT
(a) request for a certificate of origin from the importer;
(b) request for Cost and Production Statement and information from the importer for cases where the importer is able to prepare it on the basis of the importer’s own documentary evidence or information;
(c) request for Cost and Production Statement and information from an exporter
or a producer in the territory of the other Party through the other Party’s customs administration;
(d) visit to the premises of an exporter or a producer in the territory of the other Party to review the records referred to in paragraph 1 of Article 5.5 and observe the facilities used in the production of the good, or to that effect any facilities used in the production of the materials; or
(e) such other procedure as the Parties may agree to.
request for information made by the importing Party within the given period or its extension, or that the information provided is false or incomplete, the Party may deny preferential tariff treatment.
(a) deliver a written notification of its intention to conduct the visit to:
(i) the exporter or producer whose premises are to be visited; and
(ii) the customs administration of the other Party; and
(b) obtain the written consent of the exporter or producer whose premises are to be visited.
territory qualifies as an originating good, the Party may suspend the preferential tariff treatment to be accorded to subsequent shipment of identical good exported or produced
by such a person until that person establishes that the shipment complies with Chapter 4
(Rules of Origin), in accordance with its domestic laws, regulations or practices. The importing Party shall inform the customs administration of the exporting Party on the evidence and details of the suspension made.
ARTICLE 5.8 : ADVANCE RULINGS
of the good in its territory or to an exporter or producer of the good in the other Party’s
territory concerning tariff classification, questions arising from the application of the Customs Valuation Agreement and country of origin so as to determine whether the good qualifies as an originating good.
(a) the provision that an importer or its agent in its territory or an exporter or producer or their agent in the territory of the other Party may request such a ruling prior to the importation in question;
(b) a detailed description of the information required to process a request for an advance ruling; and
(c) the provision that the advance ruling be based on the facts and circumstances presented by the person requesting the ruling.
(a) may request, at any time during the course of evaluating an application for an advance ruling, additional information necessary to evaluate the application;
(b) shall issue the advance ruling expeditiously, and in any case within ninety
(90) days of obtaining all necessary information; and
(c) shall provide, upon request of the person who requested the advance ruling,
a full explanation of the reasons for the ruling.
(a) if the ruling was based on an error of fact;
(b) if there is a change in the material facts or circumstances on which the ruling was based;
(c) to conform with an amendment to this Agreement; or
(d) to conform with a judicial or administration decision or a change in its domestic laws and regulations.
is effective on the date on which the modification or revocation is issued, or on such a later date as may be specified therein, and shall not be applied to importations of a good that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted in accordance with its terms and conditions.
as may be specified in the ruling.
ARTICLE 5.9 : DENIAL OF PREFERENTIAL TARIFF TREATMENT
Except as otherwise provided in this Chapter, each Party may, notwithstanding the requirements of Articles 5.3, 5.4, 5.5, 5.6 and 5.7 and any other legal requirements imposed under its law have been satisfied, deny the applicable preferential tariff treatment to an originating good imported into its territory:
(a) if the declared origin of the imported good is not supported by documentary evidence presented by an importer in its territory, or an exporter or a producer in the territory of the other Party;
(b) if an exporter or a producer in the territory of the other Party does not allow the customs administration of the importing Party access to information required to make a determination of whether the goods or the materials is originating by the following or other means:
(i) denial of access to its records and/or documents;
(ii) failure to respond to a cost and production statement or information requested; or
(iii) failure to maintain records or documentation relevant to determine the origin of the good in accordance with the requirement of this Chapter;
(c) if, where the good is shipped through or transshipped in the territory of a country that is not a Party under this Agreement, the importer of the good does not provide, on the request of that Party's customs administration:
(i) a copy of the customs control documents that indicate, to the satisfaction of the importing Party’s customs administration, that the goods remained under customs control while in the territory of such non-Parties;
(ii) any other information given by the customs administration of such
non-Parties or other relevant entities, which evidences that they have not undergone, in such non-Parties, operation other than unloading, reloading, crating, packing, repacking or any other operation necessary
to keep them in good condition; or
(iii) any other information or commercial documents given by the importer which evidence that they have not undergone, in such non-Parties, operation other than unloading, reloading, crating, packing, repacking
or any other operation necessary to keep them in good condition; or
(d) if, within thirty (30) days after the request of the customs administration of the importing Party, the producer, exporter or importer of a good, which has
undergone processes of production or operation outside the territory of a Party, fails to submit all the necessary documentary evidence to prove that the good satisfies all the requirements set out in Article 4.4, including that has been obtained from the performer of the processes of production or operation outside the territory of the Party. Notwithstanding the above, the producer, exporter or importer of a good may have one opportunity to make
a written request to the customs administration of the importing Party for an
extension of the submission period, for a period not exceeding thirty (30)
days.
ARTICLE 5.10 : TEMPORARY ADMISSION AND GOODS IN TRANSIT
of goods traded between the Parties in accordance with the Customs Convention on the
A.T.A. Carnet for the Temporary Admission of Goods.
or to the territory of the other Party.
ARTICLE 5.11 : REVIEW AND APPEAL
(a) who has obtained a certificate of origin or completed a cost and production statement for a good that has been the subject of a determination of origin under this Chapter; or
(b) who has received an advance ruling pursuant to Article 5.8.
(a) at least one level of administrative review5-1 independent of the official or office responsible for the determination under review; and
(b) in accordance with its domestic law, judicial or quasi-judicial review of the determination or decision taken at the final level of administrative review5-2.
ARTICLE 5.12 : PENALTIES
Each Party shall maintain measures imposing criminal or administrative penalties, whether solely or in combination, for violations of its laws and regulations relating to this Chapter.
ARTICLE 5.13 : CUSTOMS CO-OPERATION
The Parties shall co-operate through their respective customs administrations on:
(a) Verification of Origin:
(i) The Parties shall co-operate through their respective customs administrations in the origin verification process of a good, for which the customs administration of the importing Party may request the other Party’s customs administrations to co-operate in this process of verification in its own territory; and
(ii) A Party may, if it considers necessary, station customs liaison officers
in the local embassy to work with the host government, for information exchange pertaining to origin verification;
(b) Paperless Customs Clearance:
(i) The Parties shall, as they deem fit, simplify and streamline customs procedures through the domestic integration of customs systems with other controlling agencies, with a view to enhancing paperless customs clearance;
(ii) The Parties shall endeavour to provide an electronic environment that
5-1 For Singapore, the level of administrative review may include the Ministry supervising the Customs
administration.
5-2 The review of the determination or decision taken at the final level of administrative review in
Singapore may take the form of a common law judicial review.
supports business transactions between their respective customs administrations and their trading communities; and
(iii) The Parties shall exchange views and information on realising and promoting paperless customs clearance between their respective customs administrations and their trading communities;
(c) Risk Management:
(i) The Parties shall adopt risk management approach in its customs activities based on its identified risk of goods in order to facilitate the clearance of low risk consignments, while focusing its inspection activities on high-risk goods; and
(ii) The Parties shall exchange information on risk management techniques
in the performance of their customs procedures;
(d) Sharing of Best Practices and Information:
(i) The Parties may, as they deem fit, organise training programmes in customs-related issues, which should include training for customs officials as well as users that directly participate in customs procedures; and
(ii) The Parties may, as they deem fit, facilitate initiatives for the exchange
of information on best practices in relation to customs procedures and matters in accordance with their respective domestic customs laws; and
(e) Transparency:
(i) Each Party shall ensure that its laws, regulations, guidelines, procedures, and administrative rulings governing customs matters are promptly published, either on the Internet or in print form;
(ii) Each Party shall designate, establish, and maintain one or more inquiry
points to address inquiries from interested persons pertaining to customs matters, and shall make available on the Internet information concerning procedures for making such inquiries; and
(iii) For the purposes of certainty, nothing in this Article or in any part of
this Agreement shall require any Party to publish law enforcement procedures and internal operational guidelines including those related
to conducting risk analysis and targeting methodologies.
ARTICLE 5.14 : IMPLEMENTATION OF OBLIGATIONS
ARTICLE 5.15 : CUSTOMS CONTACT POINTS AND AD HOC CUSTOMS COMMITTEE
ARTICLE 5.16 : CONFIDENTIALITY
confidentiality of information collected pursuant to this Chapter and protect it from disclosure that could prejudice the competitive position of the persons providing the information.
ARTICLE 5.17 : REVIEW
The Parties shall review the certification system agreed under this Chapter for issuing the certificate of origin at the review as provided in Article 22.1.
CHAPTER 6
TRADE REMEDIES
ARTICLE 6.1 : DEFINITIONS
For the purposes of this Chapter:
domestic industry means the producers as a whole of the like or directly competitive products operating within the territory of a Party, or those whose collective output of the like or directly competitive products constitute a major proportion of the total domestic production of those products;
global safeguard measure means a measure applied under Article XIX of GATT
1994 and the WTO Agreement on Safeguards;
serious injury means a significant overall impairment in the position of a domestic industry;
substantial cause means a cause which is important and not less than any other cause;
and
threat of serious injury means serious injury that, on the basis of facts and not merely on allegation, conjecture or remote possibility, is clearly imminent.
Article 6.2 : Anti-Dumping Measures
implementation of the WTO Anti-dumping Agreement:
(a) when anti-dumping margins are established on the weighted average basis, all individual margins, whether positive or negative, should be counted toward the average; and
(b) if a decision is taken to impose an anti-dumping duty pursuant to Article 9.1
of the WTO Agreement on Anti-dumping, the Party taking such a decision, should apply the ‘lesser duty’ rule, by imposing a duty which is less than the dumping margin where such lesser duty would be adequate to remove the injury to the domestic industry.
ARTICLE 6.3 : COUNTERVAILING MEASURES
and the WTO Agreement on Subsidies and Countervailing Measures.
20 (Dispute Settlement).
Article 6.4 : Bilateral Safeguard Measures
(a) suspend further reduction of any rate of customs duty provided for under this Agreement for such originating good; or
(b) increase the rate of customs duty on such originating good to a level not to exceed the lesser of:
(i) the most-favoured-nation (“MFN”) applied rate of duty on the good in
effect at the time the action is taken; and
(ii) the MFN applied rate of duty on the good in effect on the day immediately preceding the date of entry into force of this Agreement.
to paragraph 7, the Party shall also notify the other Party prior to taking such measure,
and shall initiate consultations with the other Party immediately after such measure is taken.
(a) except to the extent and for such period of time as may be necessary to prevent or remedy serious injury and to facilitate adjustment; or
(b) for a period exceeding two (2) years; except that the period may be extended
by up to two (2) years if the competent authorities determine, in conformity with the procedures set out in paragraphs 1 through 3, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting.
Article 6.5 : Global Safeguard Measures
and the WTO Agreement on Safeguards.
Chapter 20 (Dispute Settlement).
CHAPTER 7
SANITARY AND PHYTOSANITARY MEASURES
ARTICLE 7.1 : SANITARY AND PHYTOSANITARY MEASURES
is hereby incorporated into and made part of this Agreement.
(a) for Korea, the Ministry of Agriculture and Forestry; and
(b) for Singapore, Agri-Food and Veterinary Authority.
7-1 The communications and essential information exchanged between the Parties shall be in the English
language. Particulars relating to the contact points shall be exchanged at the earliest possible, after the entry into force of this Agreement. The Parties understand that the communications between the Parties can be made via fax, e-mail or any other means agreed to by the Parties.
CHAPTER 8
TECHNICAL BARRIERS TO TRADE AND MUTUAL RECOGNITION
ARTICLE 8.1 : OBJECTIVE
The objectives of this Chapter are to increase and facilitate trade between the
Parties through:
(a) the full implementation of the WTO Agreement on Technical Barriers to
Trade ( “WTO TBT Agreement”);
(b) enhancing bilateral co-operation by deepening their mutual understanding and awareness of their respective standards, technical regulations and conformity assessment systems; and
(c) creating and improving the business climate so as to increase business
opportunities.
ARTICLE 8.2 : SCOPE AND MODALITIES
(a) agreements on mutual acceptance of the results of conformity assessment procedures with respect to specified regulations conducted by bodies located
in the territory of the other Party;
(b) accreditation procedures for qualifying conformity assessment bodies;
(c) government designation of conformity assessment bodies;
(d) recognition by a Party of the results of conformity assessments performed in the other Party’s territory;
(e) voluntary arrangements between conformity assessment bodies from each
Party’s territory; and
(f) the importing Party’s acceptance of a supplier’s declaration of conformity.
To this end, the Parties shall intensify their exchanges of information on the variety of mechanisms to facilitate the acceptance of conformity assessment results. Any such arrangements shall be formalised in a Sectoral Annex, as appropriate.
Article 8.3 : Definitions
accept means the use of the results of conformity assessment procedures as a basis for regulatory actions such as approvals, licences, registrations and post-market assessments of conformity assessment;
acceptance has an equivalent meaning to accept;
certification body means a body, including product or quality systems certification bodies, that may be designated by a Party in accordance with this Chapter to conduct certification on compliance with its or the other Party’s standards and/or specifications
to meet relevant mandatory requirements;
confirmation means the confirmation of the compliance of the manufacturing or test facility with the criteria for confirmation by a competent authority of a Party pursuant
to the mandatory requirements of the other Party;
competent authority means an authority of a Party with the power to conduct inspection or audits on facilities in its territory to confirm their compliance with mandatory requirements;
conformity assessment means any procedure concerned with determining directly or indirectly whether products, manufacturers or manufacturing processes fulfil relevant standards and/or specifications to meet relevant mandatory requirements set out in the
respective Party’s mandatory requirements. The typical examples of conformity assessment procedures are sampling, testing, inspection, evaluation, verification, certification, registration, accreditation and approval, or their combinations;
conformity assessment body (“CAB”) means a body that conducts conformity assessment procedures;
designation means the authorisation by a Party’s designating authority of its CAB to undertake specified conformity assessment procedures pursuant to the mandatory requirements of the other Party;
designate has an equivalent meaning to “designation”;
Designating Authority means a body established in the territory of a Party with the authority to designate, monitor, suspend or withdraw designation of conformity assessment bodies to conduct conformity assessment procedures within its jurisdiction
in accordance with the other Party’s mandatory requirements;
mandatory requirements means a Party’s applicable laws, regulations and administrative provisions;
mutual recognition means that each Party, on the basis that it is accorded reciprocal treatment by the other Party:
(a) accepts the test reports of conformity assessment procedures of the other Party to demonstrate conformity of products and/or manufacturers/manufacturing processes with its mandatory requirements when the conformity assessment procedures are undertaken by conformity assessment bodies designated by the other Party in accordance with this Chapter, i.e., mutual recognition of test reports; or
(b) accepts the certification of results of conformity assessment procedures of the
registered conformity assessment body (“registered CAB”) means a CAB registered pursuant to Article 8.5;
registration means the authorisation by a Party’s Designating Authority of a CAB proposed by the other Party to undertake specified conformity assessment procedures pursuant to the Party’s mandatory requirements;
Regulatory Authority means an entity that exercises a legal right to determine the mandatory requirements, control the import, use or supply of products within a Party’s territory and may take enforcement action to ensure that products marketed within its territory comply with that Party’s mandatory requirements including assessments of manufacturers/manufacturing processes of products;
Sectoral Annex is an Annex to this Chapter which specifies the implementation arrangements in respect of a specific product sector;
stipulated requirements means the criteria set out in a Sectoral Annex for the designation of CAB;
technical regulations shall have the same meaning as in the WTO TBT Agreement;
test facility means a facility, including independent laboratories, manufacturers’ own test facilities or government testing bodies, that may be designated by one Party’s Designating Authority in accordance with this Chapter to undertake tests according to the other Party’s mandatory requirements; and
verification means an action to verify in the territories of the Parties, by such means as audits or inspections, compliance with the stipulated requirements for designation or criteria for confirmation by a conformity assessment body or a manufacturing or test facility respectively.
Article 8.4 : Origin
This Chapter applies to all products and/or assessments of manufacturers or manufacturing processes of products traded between the Parties, regardless of the origin of those products, unless otherwise specified in a Sectoral Annex, or unless otherwise specified by any mandatory requirement of a Party.
Article 8.5 : Mutual Recognition of Conformity Assessment
Scope
(a) mandatory requirements and/or assessments of manufacturers or manufacturing processes, maintained by the Parties to fulfill their legitimate objectives and appropriate level of protection; and
(b) the conformity assessment bodies and conformity assessment procedures
for products as may be specified in the Sectoral Annexes.
(a) provisions on scope and coverage;
(b) applicable laws, regulations and administrative provisions, i.e., mandatory requirements of each Party concerning the scope and coverage;
(c) applicable laws, regulations and administrative provisions of each Party stipulating the requirements covered by this Article, all the conformity assessment procedures covered by this Article to satisfy such requirements and the stipulated requirements or criteria for designation of conformity assessment bodies or the confirmation of the manufacturing or test facilities covered by this Article; and
(d) the list of Designating Authorities or competent authorities.
Obligations
of that Party specified in the relevant Sectoral Annex, including certificates and marks
of conformity, that are conducted by the registered CABs of the other Party.
Designating Authorities
(a) unless otherwise provided in the relevant Sectoral Annex, designate a single Designating Authority to designate CABs to conduct conformity assessment procedures for products traded between the Parties, whether imports or exports;
(b) then notify the other Party of such designation and any subsequent changes thereof;
(c) notify the other Party of any scheduled changes concerning its Designating
Authority; and
(d) ensure that its Designating Authority:
(i) has the necessary power to designate, monitor (including verification), withdraw the designation of, suspend the designation of, and lift the suspension of the designation of, the CABs that conduct conformity assessment procedures within its territory based upon the requirements set out in the other Party’s mandatory requirements as specified in the relevant Sectoral Annex; and
(ii) consults, as necessary, with the relevant counterpart in the other Party
to ensure the maintenance of confidence in conformity assessment procedures including processes. The consultations may include joint
participation in audits related to conformity assessment procedures or other assessments of registered CABs, where such participation is appropriate, technically possible and within reasonable cost.
Registration of CABs
(a) each Party shall make a proposal that a CAB of that Party designated by its Designating Authority be registered under this Article, by presenting its proposal in writing, supported by the necessary documents, to the other Party and the TBT Joint Committee established in accordance with Article
8.7 (“TBT Joint Committee”);
(b) the other Party shall consider whether the proposed CAB complies with the stipulated and mandatory requirements specified in the relevant Sectoral Annex and communicate, to the Party making the proposal and the TBT Joint Committee in writing, the other Party’s position regarding the registration of that CAB along with estimated date of registration within ninety (90) days from the date of receipt of the proposal referred to in paragraph (a). In such consideration, such other Party should assume that the proposed CAB complies with the aforementioned criteria. The TBT Joint Committee shall, within ninety (90) days from the date of receipt of the position of such other Party, decide whether to register the proposed CAB. Following the TBT Joint Committee’s decision, a Party’s Designating Authority shall inform the other Party about the date of registration of the proposed CAB within seven (7) days from the date of receipt of the TBT Joint Committee’s decision; and
(c) In the event that the TBT Joint Committee cannot decide to register the proposed CAB, the TBT Joint Committee may decide to conduct joint verification with or request the proposing Party to conduct a verification of the proposed CAB with the prior consent of the CAB. After the completion
of such verification, the TBT Joint Committee may reconsider the proposal.
(a) the name and address of the CAB;
(b) the products or processes the CAB is designated to assess;
(c) the conformity assessment procedures the CAB is designated to conduct;
and
(d) the designation procedure and necessary information used to determine the compliance of the CAB with the stipulated requirements for designation.
of its CAB registered by the Designating Authority of the other Party when its Party’s Designating Authority considers that the CAB no longer complies with the stipulated and mandatory requirements of the other Party set out in the relevant Sectoral Annex. The withdrawal of the designation shall be notified in writing to the other Party and the TBT Joint Committee. Each Party shall terminate the registration of a CAB when the Designating Authority of the other Party withdraws the designation of its CAB. The date of termination of registration of the CAB shall be the date of receipt of notification for withdrawal from the other Party.
of conformity assessment procedures conducted by that CAB from the date of the registration. In the event that the registration of a CAB is terminated, the other Party shall accept the results of the conformity assessment procedures conducted by that CAB prior to the termination, without prejudice to paragraphs 18 and 19.
Verification and Monitoring of Conformity Assessment Bodies
(a) shall undertake through appropriate means such as audits, inspections or monitoring, that the registered CABs designated by the Party fulfill the stipulated and mandatory requirements set out in the Sectoral Annex. When applying the stipulated requirements for designation of the CABs, the Designating Authority of a Party should take into account the bodies’ understanding of and experience relevant to the mandatory requirements of the other Party;
(b) shall monitor and verify that the registered CABs designated by a Party maintain the necessary technical competence to demonstrate the conformity
of a product with the standards, and/or specifications to meet the mandatory requirements of the other Party. This may include participation in appropriate proficiency-testing programmes and other comparative reviews such as mutual recognition agreements between non-governmental entities, so that confidence in their technical competence to undertake the required
conformity assessment is maintained; and
(c) shall exchange information concerning the procedures such as accreditation systems used to designate CABs and to ensure that the registered CABs designated by a Party are technically competent and comply with the relevant stipulated requirements.
the other Party.
Suspension and Lifting the Suspension of Designation of Conformity Assessment
Bodies
be effective from the date of the receipt of the decision of the TBT Joint Committee. The other Party shall accept the results of the conformity assessment procedures conducted by that CAB from the date of lifting of the suspension of the registration.
Challenge
challenged CAB shall be suspended by the relevant Designating Authority for the relevant scope of designation from the date when its technical competence or compliance is challenged, until either:
(a) the challenging Party is satisfied as to the competence and compliance of the CAB; or
(b) the designation of that CAB has been withdrawn.
(20) days or the time limit specified in the Sectoral Annex.
Article 8.6 : Confidentiality
(a) be contrary to its essential security interests;
(b) be contrary to the public interest as determined by its domestic laws, regulations and administrative provisions;
(c) be contrary to any of its domestic laws, regulations and administrative provisions including but not limited to those protecting personal privacy or the financial affairs and accounts of individual customers of financial institutions;
(d) impede law enforcement; or
(e) prejudice legitimate commercial interests of particular public or private enterprises.
Article 8.7 : TBT Joint Committee
Agreement and it shall be responsible for the effective implementation of this Chapter.
(a) broaden their exchange of information;
(b) notify any change in their mandatory requirements in accordance with their
WTO obligations; and
(c) give favourable consideration to any written request for consultation. Each Party shall respond to a written request for information from the other Party in print or electronically without undue delay, and in any case within fifteen (15) days from the date of the request, at no cost or at reasonable cost.
(a) be responsible for administering and facilitating the effective functioning of
this Chapter and applicable Sectoral Annex(es), including:
(i) facilitating the extension of this Chapter, such as the addition of new Sectoral Annexes or an increase in the scope of existing Sectoral Annexes;
(ii) resolving any questions or disputes relating to the interpretation or application of this Chapter and applicable Sectoral Annex(es);
(iii) deciding on the registration of a CAB, suspension of registration of a
CAB, lifting of suspension of registration of a CAB, and termination of registration of a CAB with reference to Article 8.5;
(iv) maintaining, unless the TBT Joint Committee decides otherwise, a list of registered CABs on a sector- by- sector basis;
(v) establishing appropriate modalities of information exchange referred
to in this Chapter;
(vi) appointing experts from each Party for joint verification referred to in paragraph 16 of Article 8.5;
(vii) discharging such other functions as provided for in this Chapter; and
(viii) where appropriate, develop a work programme and mechanisms for co-operation in the areas of technical issues of mutual interest; and
(b) determine its own operational procedures.
Article 8.8 : Preservation of Regulatory Authority
(a) prevent a Party from adopting or maintaining, in accordance with its international rights and obligations, mandatory requirements, as appropriate
to its particular national circumstances;
(b) prevent a Party from adopting mandatory requirements to determine the level of protection it considers necessary to ensure the quality of its imports,
or for the protection of human, animal or plant life or health, or the
environment, or for the prevention of deceptive practices or to fulfil other legitimate objectives, at the levels it considers appropriate;
(c) limit the authority of a Party to take all appropriate measures whenever it ascertains that products may not conform to its mandatory requirements. Such measures may include withdrawing the products from the market, prohibiting their placement on the market, restricting their free movement, initiating a product recall, initiating legal proceedings or otherwise preventing the recurrence of such problems including through a prohibition on imports. If a Party takes such measures, it shall notify the other Party and the TBT Joint Committee, within fifteen (15) days of taking the measures, giving its reasons;
(d) oblige a Party to accept the standards or technical regulations or mandatory
requirements of the other Party;
(e) entail an obligation upon a Party to accept the results of the conformity assessment procedures and/or assessment of manufacturers or manufacturing processes of products and their mandatory requirements of any third country save where there is an expressed agreement between the Parties to do so; and
(f) be construed so as to affect the rights and obligations of either Party as a member of the WTO TBT Agreement.
ARTICLE 8.9 : TERRITORIAL APPLICATION
This Chapter shall apply to the territory of Korea and to the territory of
Singapore.
Article 8.10 : Language
Committee’s co-chairs shall be in English.
English.
Article 8.11 : Sectoral Annexes
(a) specify and communicate to each other the applicable articles or annexes contained in the mandatory requirements set out in the Sectoral Annexes;
(b) exchange information concerning the implementation of the mandatory requirements specified in the Sectoral Annexes;
(c) notify each other of any scheduled changes in its mandatory requirements whenever they are made; and
(d) notify each other of any scheduled changes concerning their Designating
Authorities and the registered CABs.
following the date on which the Parties have exchange notes confirming the completion of their respective (domestic legal) procedures for the entry into force of that Sectoral Annex.
CHAPTER 9
CROSS-BORDER TRADE IN SERVICES
ARTICLE 9.1 : DEFINITIONS
For the purposes of this Chapter:
cross-border provision of services or cross-border trade in services means the provision of a service:
(a) from the territory of a Party into the territory of the other Party;
(b) in the territory of a Party by a person of that Party to a person of the other
Party; or
(c) by a national of a Party in the territory of the other Party;
but does not include the provision of a service in the territory of a Party by an investment as defined in Article 10.1;
financial services is as defined in Chapter 12 (Financial Services);
professional services means services, the provision of which requires specialised post- secondary education, or equivalent training or experience, and for which the right to practice is granted or restricted by a Party, but does not include services provided by trades-persons or vessel and aircraft crew members; and
service provider of a Party means a person of a Party that seeks to provide or provides
a service9-1.
9-1 The Parties understand that “seeks to provide or provides a service” has the same meaning as
supplies a service as used in GATS Article XXVIII(g).
ARTICLE 9.2 : SCOPE AND COVERAGE
(a) the production, distribution, marketing, sale and delivery of a service;
(b) the purchase or use of, or payment for, a service;
(c) the access to and use of distribution and transportation systems in connection with the provision of a service;
(d) the presence in its territory of a service provider of the other Party; and
(e) the provision of a bond or other form of financial security as a condition for the provision of a service.
(a) measures adopted or maintained by a Party to the extent that they are covered by Chapter 12 (Financial Services) unless specified otherwise therein;
(b) government procurement which shall be governed by Chapter 16
(Government Procurement);
(c) subsidies or grants, including government-supported loans, guarantees and insurance; or to any conditions attached to the receipt or continued receipt of such subsidies or grants, whether or not such subsidies or grants are offered exclusively to domestic services, service consumers or service suppliers;
(d) services provided in the exercise of governmental authority (such as law
enforcement, correctional services, income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care), provided that such services are supplied neither on a commercial basis, nor in competition with one or more service providers; and
(e) transportation and non-transportation air services, including domestic and
international services, whether scheduled or non-scheduled, and related
services in support of air services9-2, other than:
(i) aircraft repair and maintenance services,
(ii) the selling and marketing of air transport services; and
(iii) computerised reservation system services.
.
ARTICLE 9.3 : NATIONAL TREATMENT
ARTICLE 9.4 : LOCAL PRESENCE
Neither Party shall require a service provider of the other Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its territory as a condition for the cross-border provision of a service.
9-2 The Parties understand that ground handling services are part of related services in support of air
services.
9-3 The Parties understand that nothing in this Chapter, including this paragraph, is subject to investor- state dispute settlement pursuant to Section C of Chapter 10 (Investment).
ARTICLE 9.5 : MARKET ACCESS
Neither Party shall adopt or maintain, either on the basis of a regional subdivision
or on the basis of its entire territory, measures that:
(a) limit:
(i) the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;
(ii) the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(iii) the total number of service operations or the total quantity of services output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; 9-4
(iv) the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; and
(b) restrict or require specific types of legal entity or joint venture through which
a service supplier may supply a service.
ARTICLE 9.6 : NON-CONFORMING MEASURES
(a) any existing non-conforming measure that is maintained by a Party as set out
in its Schedule to Annex 9A; or
(b) the continuation or prompt renewal of any non-conforming measure referred
to in paragraph (a); or
(c) an amendment to any non-conforming measure referred to in paragraph (a) to the extent that the amendment does not decrease the conformity of the
9-4 This paragraph does not cover measures of a Party which limits inputs for the supply of services.
measure, as it existed immediately before the amendment, with Articles 9.3 ,
9.4 and 9.5 .
(a) any existing non-conforming measure that is maintained by a Party as set out
in Annex 9A; or
(b) any existing or new measure that a Party adopts or maintains with respect to sectors, subsectors or activities as set out in Annex 9B.
ARTICLE 9.7 : ADDITIONAL COMMITMENTS
The Parties may negotiate commitments with respect to measures affecting trade in services not subject to scheduling under Article 9.6, including those regarding qualifications, standards or licensing matters. Such commitments shall be inscribed in a Party’s Schedule of specific commitments in Annex 9C.
ARTICLE 9.8 : FUTURE LIBERALISATION
in conformity with Article 9.6 or any additional commitments scheduled in conformity with Article 9.7 by an agreement with a non-Party, it shall afford adequate opportunity
to the other Party to negotiate treatment granted therein on a mutually advantageous basis and with a view to securing an overall balance of rights and obligations.
ARTICLE 9.9 : PROCEDURES
At the first or subsequent review of this Agreement pursuant to Article 22.1, the
Parties shall establish procedures for:
(a) a Party to notify and include in its relevant Schedule:
(i) additional commitments pursuant to Article 9.7; and
(ii) amendments of measures referred to in paragraph 1(c) of Article 9.6 ;
and
(b) consultations on non-conforming measures or additional commitments with a view to further liberalisation.
ARTICLE 9.10 : RECOGNITION
to the requirements in paragraph 3, a Party may recognise the education or experience obtained, requirements met, or licenses or certifications granted in the other Party. Such recognition, which may be achieved through harmonisation or otherwise, may be based upon an agreement or arrangement between the Parties, or may be accorded autonomously.
of discrimination between countries in the application of its standards or criteria for the authorisation, licensing or certification of services suppliers, or a disguised restriction
on trade in services.
licensing or certification of professional service providers.
ARTICLE 9.11 : DOMESTIC REGULATION