Chile CostaRica

FREE TRADE AGREEMENT BETWEEN CHILE AND COSTA RICA
The following text reproduces the Free Trade Agreement between the Governments of
Central America and the Government of the Republic of Chile and the text of the Bilateral
Protocol of the Free Trade Agreement between Chile and Costa Rica.1
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TABLE OF CONTENTS Page
FREE TRADE AGREEMENT BETWEEN THE GOVERNMENTS OF CENTRAL

AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF CHILE 3
PREAMBLE 3
PART ONE. GENERAL PART 4
CHAPTER 1. INITIAL PROVISIONS 4
CHAPTER 2. GENERAL DEFINITIONS 5
PART TWO. TRADE IN GOODS 9
CHAPTER 3. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 9
CHAPTER 4. RULES OF ORIGIN 24
CHAPTER 5. CUSTOMS PROCEDURES 51
CHAPTER 6. EMERGENCY ACTION 61
CHAPTER 7. UNFAIR TRADING PRACTICES 68
PART THREE. TECHNICAL BARRIERS TO TRADE 69
CHAPTER 8. SANITARY AND PHYTOSANITARY MEASURES 69
CHAPTER 9. STANDARDS-RELATED MEASURES, METROLOGY AND APPROVAL PROCEDURES
75
PART FOUR. INVESTMENT. SERVICES AND RELATED MATTERS 82
CHAPTER 10. INVESTMENT 82
CHAPTER 11. CROSS-BORDER TRADE IN SERVICES 83
CHAPTER 12. AIR TRANSPORTATION 88
CHAPTER 13. TELECOMMUNICATIONS 90
CHAPTER 14. TEMPORARY ENTRY FOR BUSINESS PERSONS 99
PART FIVE. COMPETITION POLICY 109
CHAPTER 15. COMPETITION POLICY 109
PART SIX. GOVERNMENT PROCUREMENT 110
CHAPTER 16. GOVERNMENT PROCUREMENT 110
PART SEVEN. ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS 118
CHAPTER 17. TRANSPARENCY 118
CHAPTER 18. ADMINISTRATION OF THE AGREEMENT 120
CHAPTER 19. DISPUTE SETTLEMENT 125
CHAPTER 20. EXCEPTIONS 133
CHAPTER 21. FINAL PROVISIONS 137
BILATERAL PROTOCOL TO THE FREE TRADE AGREEMENT BETWEEN
CENTRAL AMERICA AND CHILE 141
1
The annexes and protocols, including the individual tariff elimination schedules and reservations of
Costa Rica and Chile and the specific rules of origin have been remitted to the Secretariat (Despatch 1174) for
consultation by interested Members. They are also available at the web site
http://www.comex.go.cr/acuerdos/comerciales/tlc%20chile/default1.htm.
FREE TRADE AGREEMENT BETWEEN THE GOVERNMENTS OF CENTRAL AMERICA AND THE
GOVERNMENT OF THE REPUBLIC OF CHILE
PREAMBLE
The Governments of the Republics of Chile, Costa Rica, El Salvador, Guatemala,

Honduras and Nicaragua, resolved to:
Strengthen the bonds of friendship and spirit of cooperation among their nations;
Contribute to hemispheric integration;
Establish clear and mutually advantageous rules governing the promotion and
protection of investments and their trade in goods and services;
Respect their rights and obligations under the Marrakesh Agreement Establishing the
World Trade Organization (WTO) and other bilateral and multilateral instruments of
integration and cooperation;
Create an expanded and secure market for the goods and services produced in their
territories, which is important for facilitating trade in goods and services and the flow of
capital and technology;
Achieve a better balance in their trade relations;
Avoid distortions to their mutual trade;
Enhance the competitiveness of their firms in global markets;
Increase new employment opportunities and improve the living standards of their
people;
Promote economic development in a manner consistent with environmental

protection and conservation and with sustainable development;
Preserve their capacity to safeguard the public welfare; and
Promote dynamic participation by the different economic agents, particularly the

private sector, in the effort to enhance economic relations among the Parties and to develop
and cultivate, to the fullest extent possible, the opportunities for their joint presence on
international markets;
Enter into the following Free Trade Agreement:

PART ONE. GENERAL PART
CHAPTER 1. INITIAL PROVISIONS
Article 1.01 Establishment of the free trade area
1. Through this Agreement, the Parties lay the groundwork for establishing and
implementing a free trade zone, consistent with Article XXIV of the GATT of 1994 and
Article V of the GATS.
2. Unless otherwise provided, this Agreement shall apply bilaterally between Chile and
each of the Central American countries considered individually.
3. As established in Article 18.01(4) (Free Trade Commission), the Parties may reduce
the periods established in their Tariff Elimination Programme through implementation
agreements, protocols of a lower rank or under their domestic law, with the intention of
fulfilling the objectives of this Agreement.
Article 1.02 Objectives
1. The objectives of this Agreement are to:
(a) Further develop the free trade zone;
(b) encourage the expansion and diversification of trade in goods and services among
the Parties;
(c) promote conditions of fair competition in the free trade area;
(d) eliminate barriers to trade and facilitate the circulation of goods and services in the
free trade area;
promote, protect and substantially increase investments in each Party; and
establish effective procedures for the application and observance of this Agreement, for its
joint administration and for dispute settlement.
2. The Parties shall interpret and apply the provisions of this Agreement in the light of
the objectives set out in paragraph 1 and in accordance with applicable rules of international
law.
Article 1.03 Observance
Each Party shall ensure, in accordance with its constitutional requirements, that all
necessary measures are adopted for observance of the provisions of this Agreement in its
territory by all levels of government.
Article 1.04 Relation to other international agreements
1. The Parties affirm their existing rights and obligations with respect to each other
under the WTO Agreement and other agreements to which they are party.
2. In the event of any inconsistency between this Agreement and the agreements
referred to in paragraph 1, this Agreement shall prevail to the extent of the inconsistency.
3. In the event of any inconsistency between this Agreement and the specific trade
obligations set out in:
(a) The Convention on International Trade in Endangered Species of Wild Fauna and Flora,
done at Washington, 3 March 1973, as amended 22 June 1979,
(b) the Montreal Protocol on Substances that Deplete the Ozone Layer, done on
16 September 1987, as amended 29 June 1990; or
(c) the Basel Convention on the Control of Transboundary Movements of Hazardous

Wastes and Their Disposal, done on 22 March 1989;
such obligations shall prevail to the extent of the inconsistency, provided that where
a Party has a choice among equally effective and reasonably available means of complying
with such obligations, the Party chooses the alternative that is the least inconsistent with
the other provisions of this Agreement.
Article 1.05 Successor agreements
All references to any other international agreement shall be understood to be made

in the same terms to a successor agreement to which the Parties are party.
CHAPTER 2. GENERAL DEFINITIONS
Article 2.01 Definitions of general application
For purposes of this Agreement, unless otherwise specified:
Central America means the Republics of Costa Rica, El Salvador, Guatemala, Honduras
and Nicaragua;
Central American country means a country of Central America;
chapter means the first two digits in Harmonized System;
customs duty means any customs or import duty and a charge of any kind imposed
in connection with the importation of a good, including any form of surtax or surcharge in
connection with such importation, but does not include any:
(a) Charge equivalent to an internal tax imposed consistently with Article III, paragraph 2,
of the GATT 1994;
(b) anti-dumping or countervailing duty that is applied pursuant to a Party’s domestic

law and is not applied in a manner that is inconsistent with Chapter 7 (Unfair Trading
Practices);
(c) fee or other charge in connection with importation commensurate with the cost of
services rendered; and
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;
Commission means the Free Trade Commission established under Article 18.01 (The
Free Trade Commission);
Customs Valuation Agreement means the Agreement on Implementation of Article VII

of the General Agreement on Tariffs and Trade 1994, including its interpretative notes,
which is part of the WTO Agreement;
days means calendar days;
enterprise means any entity constituted or organized under the applicable law of a
Party, whether or not for profit, and whether privately-owned or governmentally-owned,
including other economic organizations or units constituted or organized under the
applicable law of a Party, such as a trust, partnership, sole proprietorship, joint venture or
other association, but does not include corporations with bearer stock;
existing means in effect on the date of entry into force of this Agreement;
GATS means the General Agreement on Trade in Services, which is part of the WTO
Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, which is part
of the WTO Agreement;
goods means any material, matter, product or part;
goods of a Party means domestic products as these are understood in the GATT
1994 or such goods as the Parties may agree, and includes originating goods of that Party.
Goods of a Party may incorporate materials from other countries;
Harmonized system means the Harmonized Commodity Description and Coding

System, including its General Rules of Interpretation, Section, Chapter, Heading and
Subheading Chapter Notes, as adopted and implemented by the Parties in their respective
laws;
heading means the first four digits in the Harmonized System;
measure includes any law, regulation, provision or practice;
national means a natural person of a Party as established in Annex 2.01;
originating goods means qualifying under the rules of origin set out in Chapter 4
(Rules of Origin);
Party means a State in which this Agreement has entered into force;
person means a natural person or an enterprise;
person of a Party means a national or an enterprise of a Party;

Secretariat means the Secretariat established under Article 18.03 (The Secretariat);
State enterprise means an enterprise that is owned or controlled through ownership

interests by a Party;
subheading means the first six digits in the Harmonized System;
Tariff Elimination Programme means the programme established in Annex 3.04(2)

(Tariff Elimination Programme);
territory means the land, maritime, and air space of each Party and the exclusive
economic zone and the continental shelf over which it exercises sovereign rights and
jurisdiction in accordance with international law;
Understanding means that Understanding on Rules and Procedures Governing the

Settlement of Disputes, which is part of the WTO Agreement;
Uniform Regulations means the regulations established pursuant to Article 5.12

(Uniform Regulations); and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade
Organization, done on 15 April 1994.
ANNEX 2.01
COUNTRY-SPECIFIC DEFINITIONS
For purposes of this Agreement, unless otherwise specified:
National means:
(a) With respect to Chile:
(i) A Chilean as defined in Article 10 of the Political Constitution of the Republic of Chile;
and
(ii) a person who is a permanent resident under Chilean law;
(b) with respect to Costa Rica:
(i) A Costa Rican by birth in accordance with Article 13 of the Political Constitution of
the Republic of Costa Rica;
(ii) a Costa Rican by naturalization in accordance with Article 14 of the Political

Constitution of the Republic of Costa Rica; and
(iii) a person who is a permanent resident under Costa Rican law;
(c) with respect to El Salvador:
(i) A Salvadoran by birth as defined in Article 90 of the Constitution;
(ii) a Salvadoran by naturalization as defined in Article 92 of the Constitution; and

(iii) a person who is a permanent resident under Salvadoran law;
(d) with respect to Guatemala:
(i) A person born in the territory of the Republic of Guatemala, on Guatemalan vessels or
aircraft, and children born abroad to a Guatemalan father or mother. The children of
diplomats and others holding legally comparable positions are excepted;
(ii) nationals by birth of the Republics that constituted the Central American Federation
if they acquire residence in Guatemala and state to a competent authority their desire to
become a Guatemalan citizen. In that event, they may retain their nationality of origin,
without detriment to the provisions of Central American treaties or conventions; and
(iii) a person who obtains naturalization under the law;
(e) with respect to Honduras:
(i) A Honduran by birth as defined in Article 23 of the Constitution of the Republic of

Honduras; and
(ii) a Honduran by naturalization as defined in Article 24 of the Constitution of the

Republic of Honduras; and
(f) with respect to Nicaragua, a Nicaraguan as determined in Article 15 of the Political

Constitution of the Republic of Nicaragua. Notwithstanding, foreigners with the status of
permanent residents as defined in Article 9 of the Immigration Law, Law 153, published in
Gazette 80 of 30 April 1993 ("Ley de Migración, Ley No 153, La Gaceta No 80, 30 de abril de
1993"), shall enjoy the benefits, rights and obligations that this Agreement confers on
nationals, solely with respect to the application of this Agreement.
PART TWO. TRADE IN GOODS
CHAPTER 3. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
Section A – Definitions, Scope and Coverage
Article 3.01 Definitions
For the purposes of this Chapter:
Advertising films means recorded visual media, with or without sound-tracks,

consisting essentially of images showing the nature or operation of goods or services offered
for sale or lease by a person established or resident in the territory of a Party, provided that
the films are of a kind suitable for exhibition to prospective customers but not for broadcast
to the general public, and provided that they are imported in packets that each contain no
more than one copy of each film and that do not form part of a larger consignment;
agricultural good means a good classified in one of the following chapters, headings
or subheadings of the Harmonized System as amended in 1996:
The descriptions are provided for purposes of reference)
Tariff Classification Description

Chapters 1 through 24 (Other than a fish or fish product)
Subheading 2905.43 Manitol
Subheading 2905.44 Sorbitol
Heading 33.01 Essential oils
Headings 35.01 to 35.05 Albuminoidal substances, modified starches
Subheading 3809.10 Finishing agents
Subheading 3824.60 Sorbitol, except in subheading 2905.44
Headings 41.01 to 41.03 Hides and skins
Heading 43.01 Raw furskins
Headings 50.01 to 50.03 Raw silk and silk waste
Headings 51.01 to 51.03 Wool and animal hair
Headings 52.01 to 52.03 Raw cotton, cotton waste and cotton carded or combed
Heading 53.01 Raw flax
Heading 53.02 Raw hemp
commercial samples of negligible value means commercial samples having a value

(individually or in the aggregate as shipped) of not more than one U.S. dollar, or the
equivalent amount in the currency of any of the Parties, or so marked, torn, perforated or
otherwise treated that they are unsuitable for sale or for use except as commercial samples;
consumed means:
(a) Actually consumed; or
(b) further processed or manufactured so as to result in a substantial change in value,

form or use of the good or in the production of another good;
export subsidies refer to:

(a) The provision by governments or their agencies of direct subsidies, including
payments in kind, to a firm, to an industry, to producers of an agricultural product, to a
cooperative or other association of such producers, or to a marketing board;
(b) the sale or disposal for export by governments or their agencies of non-
commercial stocks of agricultural products at a price lower than the comparable price
charged for the like product to buyers in the domestic market;
(c) payments on the export of an agricultural product that are financed by virtue
of governmental action, whether or not a charge on the public account is involved, including
payments that are financed from the proceeds of a levy imposed on the agricultural product
concerned or on an agricultural product from which the exported product is derived;
(d) the provision of subsidies to reduce the costs of marketing exports of

agricultural products (other than widely available export promotion and advisory services)
including handling, upgrading and other processing costs, and the costs of international
transport and freight;
(e) internal transport and freight charges on export shipments, provided or

mandated by governments, on terms more favourable than for domestic shipments; and
(f) subsidies on agricultural products contingent on their incorporation in

exported products;
fish and fish products means fish, crustaceans, molluscs and all other aquatic
invertebrates, marine mammals and by-products thereof, classified in one of the following
chapters, headings or subheadings of the Harmonized System, as amended in 1996:
(The descriptions are provided for purposes of reference)
Tariff Classification Description

Chapter 03 Fish and crustaceans, molluscs and other aquatic invertebrates
Heading 05.07 Ivory, tortoise-shell, marine mammals, horns, antlers, shells, hooves,
nails, claws an d beaks, and products thereof
Heading 05.08 Coral and similar materials
Heading 05.09 Natural sponges of animal origin
Subheading Products of fish or crustaceans, molluscs or other aquatic invertebrates;
0511.91 dead animals of Chapter 3
Heading 15.04 Fats and oils and their fractions, of fish or marine mammals
Heading 16.03 Extracts and juices other than of meat
Heading 16.04 Prepared or preserved fish
Heading 16.05 Prepared or preserved crustaceans, molluscs and other aquatic
invertebrates
Subheading Flours, meals, pellets, of fish
2301.20
goods imported for sports purposes means sports equipment for use in sports
contests, events or training in the territory of the Party into whose territory such goods are
imported;
goods intended for display or demonstration includes their component parts, ancillary
apparatus and accessories;
printed advertising materials means those goods classified in Chapter 49 of the

Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks
published by trade associations, tourist promotional materials and posters that are used to
promote, publicize or advertise a good or service and are supplied free of charge;
repair or alteration does not include an operation or process that either destroys the
essential characteristics of a good or creates a new or commercially different good. An
operation or process that is part of the production or assembly of an unfinished good into a
finished good is not a repair or alteration of the unfinished good; a component of a good is a
good that may be subject to repair or alteration; and
temporary admission of goods means temporary admission of goods or temporary

importation of goods.
Article 3.02 Scope and Coverage
This Chapter applies to trade in goods among the Parties.
Section B – National Treatment
Article 3.03 National treatment
1. Each Party shall accord national treatment to the goods of another Party in
accordance with Article III of the GATT 1994, including its interpretative notes, which are
incorporated into and made part of this Agreement.
2. For the purposes of paragraph 1, each Party shall accord the goods of another Party
treatment no less favourable than the most favourable treatment accorded by that Party to
any like, directly competitive or substitutable goods of national origin.
Section C – Tariffs
Article 3.04 Tariff elimination
1. Except as otherwise provided in this Agreement, no Party may increase any existing
customs duty, or adopt any new duty, on an originating good.
Except as otherwise provided herein, when this Agreement comes into force, each Party shall
progressively eliminate its customs duties on all originating goods in accordance with the
terms of Annex 3.04 (Tariff Elimination Programme).
Paragraph 1 does not prevent a Party from raising a customs duty to a level not greater
than the level established in the Tariff Elimination Programme, where that customs duty has
previously been unilaterally reduced to a level below the level established in the Tariff
Elimination Programme. During the tariff elimination process, the Parties agree to apply to
originating goods traded among them the lesser of either the customs duties established
under the Tariff Elimination Programme or the applicable rate determined in accordance with
Article I of the GATT 1994.
On the request of any Party, the Parties shall consult to consider accelerating the elimination
of customs duties set out in their Tariff Elimination Programme.
An agreement reached on the basis of paragraph 4 to accelerate the elimination of a
customs duty on an originating good shall be done in terms of Article 18.01(4) and (5)
(Free Trade Commission) and shall prevail over any duty rate or staging category determined
pursuant to the Tariff Elimination Programme for that good.
Except as provided in Annex 3.04(6), the customs duties on the goods in the Tariff
Elimination Programme are established in ad-valorem terms.
Paragraphs 1 and 2 are not intended to prevent a Party from maintaining or raising a
customs duty that may be permitted under the Understanding or any other agreement that
forms part of the WTO Agreement.
Article 3.05 Temporary admission of goods
1. Each Party shall grant duty-free temporary admission, including exemption from the
fee charged by Chile for the use of this regime specified in Annex 3.05, for:
(a) Professional equipment necessary for carrying out the business activity, trade or
profession of a business person who qualifies for temporary entry pursuant to Chapter 14
(Temporary Entry for Business Persons);
(b) equipment for the press or for sound or television broadcasting and cinematographic
equipment;
(c) goods imported for sports purposes and goods intended for display or
demonstration; and
(d) commercial samples and advertising films;
imported from the territory of another Party, regardless of their origin and regardless
of whether like, directly competitive or substitutable goods are available in the territory of
the Party.
2. Except as otherwise provided in this Agreement, no Party may condition the duty-
free temporary admission of a good referred to in paragraph 1(a), (b) or (c), other than to
require that such good:
(a) Be imported by a national or resident of another Party who seeks temporary entry;
(b) be used solely by or under the personal supervision of such person in the exercise of
that person’s the business activity, trade or profession;
(c) not be sold or leased while in its territory;
(d) be accompanied by a bond in an amount no greater than 110 per cent of the charges
that would otherwise be owed on final importation, or by another form of security, releasable
on exportation of the good, except that a bond for customs duties shall not be required for
an originating good;
(e) be capable of identification when exported;

(f) be exported on the departure of that person or within such other period of time as is
reasonably related to the purpose of the temporary admission; and
(g) be imported in no greater quantity than is reasonable for its intended use.
3. Except as otherwise provided in this Agreement, no Party may condition the duty-
free temporary admission of a good referred to in paragraph 1(d), other than to require that
such good:
(a) Be imported solely for the solicitation of orders for goods from another Party,
regardless of whether they are originating goods, or services provided from the territory of
another Party;
(b) not be sold, leased or put to any use other than exhibition or demonstration while in
its territory;
(c) be capable of identification when exported;
(d) be exported within such period as is reasonably related to the purpose of the
temporary admission; and
(e) be imported in no greater quantity than is reasonable for its intended use.
4. Where a good is temporarily admitted duty free under paragraph 1 and any condition
a Party imposes under paragraph 2 and 3 has not been fulfilled, that Party may impose:
(a) The customs duty and any other charge that would be owed on final importation of
the good; and
(b) any applicable criminal, civil or administrative penalties that the circumstances may
warrant.
5. Subject to Chapters 10 (Investment) and 11 (Cross-Border Trade in Services):
(a) Each Party shall allow a vehicle or container used in international traffic that enters
its territory from the territory of another Party to exit its territory on any route that is
reasonably related to the economic and prompt departure of such vehicle or container;
(b) no Party may require any bond or impose any penalty or charge solely by reason of
any difference between the port of entry and the port of departure of a vehicle or container;
(c) no Party may condition the release of any obligation, including any bond, that it
imposes in respect of the entry of a vehicle or container into its territory on its exit through
any particular port of departure; and
(d) no Party may require that the vehicle or carrier bringing a container from the
territory of another Party into its territory be the same one that takes it to the territory of
another Party.
6. For purposes of paragraph 5, "vehicle" means a truck, a truck tractor, tractor, trailer
unit or trailer, a locomotive, or a railway car or other railroad equipment.
Article 3.06 Duty-free entry of commercial samples of negligible or no commercial value

and printed advertising materials
Each Party shall grant duty-free entry to commercial samples of negligible or no
commercial value and to printed advertising materials imported from the territory of the
other Party, regardless of their origin, but may require that:
(a) Such samples be imported solely for the solicitation of orders for goods or services
from another Party, regardless of whether they are originating goods or of whether the
services are provided from the territory of another Party or that of a non-Party; or
(b) such advertising materials be imported in packets that each contain no more than
one copy of each such material and that neither such materials nor packets form part of a
larger consignment.
Article 3.07 Goods re-entered after repair or alteration
1. No Party may apply a customs duty to a good, regardless of its origin, that re-enters
its territory after that good has been exported or temporarily removed from its territory to
the territory of another Party for repair or alteration, regardless of whether such repair or
alteration could be performed in its territory.
2. No Party may apply a customs duty to a good, regardless of its origin, imported
temporarily from the territory of another Party for repair or alteration.
3. Re-entry under paragraph 1 and temporary admission under paragraph 2 shall take
place within the time limit established in the law of the Parties.
Article 3.08 Customs valuation
The Customs Valuation Agreement shall govern the customs valuation rules applied
by the Parties to their reciprocal trade, in the form in which the Parties have adopted it.
Notwithstanding, the Parties agree that they will not determine the value of goods on the
basis of minimum values, except as stipulated in Annex 3.08.
Article 3.09 Restrictions on export subsidy programmes
The Parties shall establish the treatment of domestic support for agricultural goods
and export subsidy programmes in Annex 3.09.
Section D – Non-Tariff Measures
Article 3.10 Import and export restrictions
1. The Parties undertake to completely and immediately eliminate non-tariff barriers,

with the exception of the rights of the Parties under Articles XX and XXI of the GATT 1994
and those regulated in Chapter 8 (Sanitary and Phytosanitary Measures) and Chapter 9
(Standards-Related Measures, Metrology and Approval Procedures).
2. Except as otherwise provided in this Agreement, no Party may adopt or maintain any
prohibition or restriction on the importation of any good of another Party or on the
exportation or sale for export of any good destined for the territory of another Party, except
in accordance with Article XI of the GATT 1994, including its interpretative notes. To this
end, Article XI of the GATT 1994 and its interpretative notes are incorporated into and made
a part of this Agreement.
3. The Parties understand that the GATT 1994 rights and obligations incorporated by
paragraph 2 prohibit, in any circumstances in which any other form of restriction is
prohibited, export price requirements and, except as permitted in enforcement of
countervailing and antidumping orders and undertakings, import price requirements.
4. In the event that a Party adopts or maintains a prohibition or restriction on the

importation from or exportation to a non-Party of a good, nothing in this Agreement shall be
construed to prevent the Party from:
(a) Limiting or prohibiting the importation from the territory of another Party of such
good; or
(b) requiring as a condition of export of such good to the territory of another Party, that
the good not be re-exported to the non-Party, directly or indirectly, without being consumed
in the territory of the other Party.
5. In the event that a Party adopts or maintains a prohibition or restriction on the

importation of a good from a non-Party, the Parties, on request of another Party, shall
consult with a view to avoiding undue interference with or distortion of pricing, marketing
and distribution arrangements in that other Party.
6. Paragraphs 1 through 4 shall not apply to the measures set out in Annex 3.10(6).
Article 3.11 Customs processing fees and consular fees
1. Subject to Annex 3.11(1), when this Agreement comes into force the Parties shall
not apply any existing customs processing fees, including those established in Annex
3.11(1), and shall not adopt any new customs user fee on originating goods.
2. Subject to Annex 3.11(2), no Party shall collect consular fees or charges or require
consular formalities on originating goods after this Agreement comes into force.
Article 3.12 Geographical indications
1. Each Party shall recognize and protect the geographical indications and appellations
of origin of another Party, as established in this Article.
2. No Party shall permit the importation, manufacture or sale of a good that uses a
geographical indication or appellation of origin protected in another Party, unless it has been
manufactured and certified therein, pursuant to its legislation applicable to that good.
3. Paragraphs 1 and 2 shall only have effect with respect to those geographical
indications and appellations of origin protected by the domestic legislation of the Party that
is claiming protection and whose definition is consistent with Article 22 (1) of the
Agreement on Trade-Related Aspects of Intellectual Property Rights, which is part of the
WTO Agreement. Further, to gain protection, each contracting Party shall notify the other
Parties of the geographical indications or appellations of origin which, fulfilling the above-
mentioned requirements, shall be considered within the scope of the protection.
4. All of the above shall be understood without prejudice to the recognition that the
Parties may grant to homonymous geographical indications and appellations of origin that
legitimately could belong to a non-Party.
Article 3.13 Country of origin marking
1. Each Party shall apply to the goods of another Party, where relevant, its legislation
on country of origin markings, in accordance with Article IX of the GATT 1994. To that end,
Article IX of the GATT 1994 is incorporated into and made an integral part of this
Agreement.
2. Each Party shall accord the goods of another Party treatment no less favourable than
it accords to the goods of a non-Party with respect to the application of rules relating to
country of origin markings, in accordance with Article IX of the GATT 1994.
3. Each Party shall ensure that the establishment and application of the respective
legislation on country of origin markings is not intended to create, and does not have the
effect of creating, unnecessary obstacles to trade among the Parties.
Article 3.14 Export taxes
Except as provided in Annex 3.14, no Party may adopt or maintain any duty, tax or
other charge on the export of any good to the territory of another Party, unless such duty,
tax or charge is adopted or maintained on any such good when destined for domestic
consumption.
Article 3.15 International obligations
A Party, prior to adopting a measure under an inter-governmental agreement on

goods pursuant to Article XX(h) of the GATT 1994, which may affect the trade in
commodities among the Parties, shall consult another Party to prevent the nullification or
impairment of a concession granted by that Party under Article 3.04.
Article 3.16 Committee on Trade in Goods
1. The Parties establish a Committee on Trade in Goods whose composition is

established in Annex 3.16.
2. The Committee shall examine matters related to this Chapter, Chapter 4 (Rules of
Origin), Chapter 5 (Customs Procedures) and the Uniform Regulations.
3. Without detriment to Article 18.05(2) (Committees), the Committee shall:
(a) Refer to the Commission matters that impede access to markets in the
territory of the Parties, particularly relating to the application of non-tariff measures; and
(b) promote trade in goods among the Parties, through consultations and studies
to accelerate the elimination of tariffs by modifying the time limits established in
Annex 3.04(2) (Tariff Elimination Programme).
ANNEX 3.04(6)
PRICE BANDS
1. Except as otherwise provided in Annex 3.04(2) (Tariff Elimination Programme), the
Parties may, subject to the conditions of this Annex, use price band systems.
2. In using price band systems relating to imports of goods, the Parties shall not, within
the scope of this Agreement, incorporate new products or modify the mechanisms or apply
them in a manner that restricts access to their respective territories.
3. The Tariff Elimination Programme shall not apply to the specific duties deriving from
the price band systems. However, in the event that these specific duties are dismantled in
full or in part with respect to any Party or non-Party after this Agreement comes into force,
the Party that applies the price band system shall grant the other Party treatment no less
favourable than it grants to any other Party or non-Party.
4. For the purposes of this Annex, the Parties incorporate their applicable law and the
schedule of goods that are currently included in the price band systems, which are listed
below.
In the case of Chile
The products covered by Law 18.525 ("Ley 18.525"), in accordance with the
Chilean Harmonized System, as amended by the 1996 Harmonized System are:
(Note: The descriptions are provided for purposes of reference)
Tariff classification Description

Subheading 1001.90 Wheat and meslin, except hard wheat
Heading 11.01 Wheat or meslin flour
Subheading 1507.10 Crude soybean oil
Subheading 1507.90 Other soybean oil
Subheading 1508.10 Crude peanut oil
Subheading 1508.90 Other peanut oil
Subheading 1509.10 Virgin olive oil
Subheading 1509.90 Other olive oil
Heading 15.10 Other olive oils and blends of these oils with
oils from heading 15.09
Subheading 1511.10 Crude palm oil
Subheading 1511.90 Other palm oil
Item 1512.11.10 Crude sunflower-seed oil
Item 1512.11.20 Crude safflower-seed oil
Item 1512.19.10 Other sunflower-seed oil
Item 1512.19.20 Other safflower-seed oil
Subheading 1512.21 Crude cottonseed oil
Subheading 1512.29 Other cottonseed oil
Subheading 1513.11 Crude coconut oil
Subheading 1513.19 Other coconut oil
Subheading 1513.21 Crude palm kernel or babassu oil
Subheading 1513.29 Other palm kernel or babassu oil
Subheading 1514.10 Crude rapeseed, colza or mustard-seed oil
Subheading 1514.90 Other rapeseed, colza or mustard-seed oil
Subheading 1515.21 Crude corn oil
Subheading 1515.29 Other corn oil
Subheading 1515.50 Sesame oil
Subheading 1515.90 Other vegetable oil
Subheading 1701.11 Raw cane sugar
Subheading 1701.12 Raw beet sugar
Subheading 1701.91 Other cane or beet sugar and sucrose
containing added flavour or colouring
Subheading 1701.99 Other cane or beet sugar and sucrose
In the case of Honduras
Under Decree No. 31-92 of 6 April 1992, Law for the Modernization and
Development of the Agricultural Sector ("Decreto N° 31-92 del 6 de abril de 1992, Ley para
la Modernización y el Desarrollo del Sector Agrícola") and Resolution No. 0105-93 of 20 April
1993, Regulations on the Marketing of Agricultural Products ("Acuerdo N° 0105-93 del 20
de abril de 1993, Reglamento de Comercialización de Productos Agrícolas"), the products
subject to the import price band system, in accordance with the Central American Tariff
System, as amended by the 1996 Harmonized System, are:

Item 1005.90.20 Yellow corn
Item 1005.90.30 White corn
Item 1007.00.90 Other
Subheading 1102.20 Corn flour
Subheading 1103.13 Groats and seminola of wheat
Subheading 1108.12 Corn starch
ANNEX 3.05
TEMPORARY ADMISSION OF GOODS
In the case of Chile
The temporary admission of goods from any Party, specified in Article 3.05(1) shall
not be subject to payment of the fee established in Article 106 of Chilean Customs
Ordinance ("Ordenanza de Aduanas") contained in Decree with Force of Law No. 2 of the
Ministry of Finance, Official Gazette, 21 July 1998 ("Decreto con Fuerza de Ley N° 2 del
Ministerio de Hacienda, Diario Oficial, 21 julio 1998").
ANNEX 3.10(6)
IMPORT AND EXPORT RESTRICTIONS
Chilean measures
Notwithstanding Articles 3.03 and 3.10, Chile may adopt or maintain measures
relating to the import of used vehicles, as established in Law 18.483 ("Ley 18.483") or
under any equivalent successor legislation.
Costa Rican measures

1. Notwithstanding Articles 3.03 and 3.10, Costa Rica may adopt or maintain measures
relating to the government monopoly over the importation, refining and wholesale
distribution of crude oil, its derived fuels, asphalts and naphthas in the following tariff
classifications, in accordance with Law 7356 of 6 September 1993 ("Ley 7356 del 6 de
septiembre de 1993") or any equivalent successor legislation:

Heading 27.09 Crude petroleum oils and oils obtained from
bituminous minerals
Heading 27.11 Natural gas (liquefied)
Subheading 2711.12 Propane
Subheading 2711.13 Butane
Subheading 2711.19 Other
Subheading 2711.21 Natural gas (gaseous)
Subheading 2711.29 Other
Subheading 2714.90 Other (asphalt)
Heading 27.16 Electrical energy
2. Notwithstanding Articles 3.03 and 3.10, Costa Rica may adopt or maintain
restrictions on the import of the used goods described in the following tariff classifications
of the Central American Tariff System, as amended by the 1996 Harmonized System:

Subheading 4012.10 Retreaded rubber tires
Subheading 4012.20 Used rubber tires
Heading 63.05 Sacks and bags used for packing and other
used containers
Heading 63.09 Clothing and textile articles, made up articles
and footwear
Heading 63.10 Rags, twine, rope and cordage in scrap or
worn out articles of textile materials
Heading 87.02 Motor vehicles for the transport of ten or
more persons, including the driver
Heading 87.03 Motor cars and other motor vehicles
principally designed for the transport of
persons (other than those of heading
87.02), including station wagons and racing
cars
Heading 87.04 Motor vehicles for the transport of goods
Heading 87.05 Special purpose motor vehicles, other than
those principally designed for the transport
of persons or goods (for example, wagons,
service trucks, mobile cranes, fire fighting
vehicles, concrete mixers, road sweepers,
spraying vehicles, mobile workshops, mobile
radiological units)
Heading 87.06 Chassis fitted with engines, for the motor
vehicles of headings 87.01 to 87.05
Heading 87.07 Bodies (including cabs) for the motor
Heading 87.11 Motorcycles (including mopeds) and cycles
fitted with an auxiliary motor, with or
without side-cars
relating to the export of logs and square-sawn lumber from forests, as established in Law
No. 7575 of 16 April 1996 ("Ley Nº 7575 del 16 de abril de 1996") or any equivalent
successor legislation.
relating to the export of hydrocarbons, as established in Law No. 7399 of 3 May 1994 ("Ley
Nº 7399 del 3 de mayo de 1994") or any equivalent successor legislation.
Nicaraguan measures
1. Notwithstanding Article 3.10, Nicaragua may adopt or maintain prohibitions or

restrictions on the export of any basic foodstuff to the territory of another Party, where
such measures are applied temporarily to alleviate a critical shortage of that foodstuff. For
purposes of this paragraph, "temporarily" means up to one year or such longer period as the
Parties may agree.
2. For purposes of paragraph 1, "basic foodstuffs" means:
beans cookies oat flakes

beef corn powered milk
bread corn dough rice
brown sugar corn flour salt
cacao corn tortillas vegetable fat
cheese eggs vegetable oil
chicken fish wheat flour
coffee liquid milk white sugar
3. Notwithstanding Article 3.10, Nicaragua may adopt or maintain prohibitions or

restrictions on imports of the goods in headings 63.09 and 63.10 (clothing) of the Central
American Tariff System.
4. Notwithstanding Article 3.10, Nicaragua may adopt or maintain restrictions on the

import of used goods in the following Central American Tariff System classifications.

Heading 40.04 Waste, parings and scrap of unvulcanized
rubber, including powders and granules
Subheading 4012.10 Retreaded pneumatic tires
Subheading 4012.20 Used pneumatic tires
Chapters 61 and 62 Used clothing
Chapter 64 Used footwear
Subheading 8414.5 Fans
Heading 84.15 Air conditioning machines, comprising a
motor-driven fan and elements for changing
the temperature and humidity
Heading 84.18 Refrigerators, freezers and other materials,
machines and apparatus for the production
of cold, electric or other
Heading 84.50 Laundry-type washing machines, including
machines which both wash and dry
Heading 84.70 Calculating machines; accounting machines,
postage-franking machines, ticket-issuing
machines and similar machines, incorporating
a calculating device; cash registers
Heading 84.71 Automatic data processing machines and
units thereof; magnetic or optical readers,
machines for transcribing data onto data
media in coded form
Heading 85.09 Electromechanical domestic appliances with
self-contained electric motor
Heading 85.16 Electric water heaters and immersion
heaters; electric space heating apparatus and
floor heating apparatus; electrothermic
hairdressing apparatus; electric flatirons;
other electronic domestic appliances; electric
heating resistors
Heading 85.19 Turntables, record players, cassette players
and other sound reproducing apparatus
Heading 85.21 Video recording or reproducing apparatus
Heading 85.27 Reception apparatus for radiotelephony,
radiotelegraphy or radiobroadcasting
Heading 85.28 Reception apparatus for television
Heading 87.02 Motor vehicles for the transport of ten or
more persons, including the driver
Heading 87.03 Motor cars and other motor vehicles
principally designed for the transport of
persons (other than those of heading
87.02), including station wagons and racing
cars
Heading 87.05 Special purpose motor vehicles, other than
those principally designed for the transport
of persons or goods (for example, wagons,
service trucks, mobile cranes, fire fighting
vehicles, concrete mixers, road sweepers,
spraying vehicles, mobile workshops, mobile
radiological units)
Heading 87.06 Chassis fitted with engines, for the motor
Heading 87.07 Bodies (including cabs) for the motor
Heading 87.11 Motorcycles (including mopeds) and cycles
fitted with an auxiliary motor, with or
without side-cars
Heading 90.09 Photocopying apparatus incorporating an
optical system or of the contact type and
thermocopying apparatus
5. Notwithstanding Article 3.10, Nicaragua may maintain the prohibition on exports of

cedar and caoba from the natural forest, as established in Decree No. 30/97 of the Office of
the President of the Republic of 5 June 1997 published in Gazette No. 108 of 10 June 1997
("Decreto N° 30/97 de la Presidencia de la República, 5 de junio de 1997, La Gaceta Nº 108,
10 junio 1997") or any equivalent successor legislation.
ANNEX 3.11(1)
CUSTOMS PROCESSING FEES
1. The prohibition set out in Article 3.11(1) includes, in the case of Chile, the fees
established in:
(a) Article 190 of Law 16.424 ("Ley N° 16.424"); and
(b) Article 62 of Supreme Decree 172 of the Under-Secretariat of Aviation, Official

Gazette of 10 April 1974, Regulations on Aeronautic Fees and Taxes ("Decreto Supremo
172 de la Subsecretaría de Aviación, Diario Oficial, 10 abril 1974, Reglamento de Tasas
Aeronáuticas e Impuestos").
2. Notwithstanding Article 3.11(1), Honduras may continue applying until 1 January

2003, the fee of 0.5 per cent for customs services established in Decree 85-84 of 31 May
1984 ("Decreto Nº 85-84 del 31 de mayo de 1984") and amendments thereto.
3. Notwithstanding Article 3.11(1), Nicaragua may continue applying until 1 January

2006, the fee of 50 centavos of a Central American peso (1 Central American peso is
equivalent to US$1) per gross tonne or part thereof on permanent imports of goods, except
non-commercial goods entering by post, in accordance with Article 38, Chapter XX, of Law
257 of 4 June 1997, Law on Tax and Commercial Justice published in Gazette 106 of 6 June
1997 ("Ley N° 257 del 4 de junio de 1997, Ley de Justicia Tributaria y Comercial, La Gaceta
N° 106, 6 junio 1997").
ANNEX 3.11(2)
CONSULAR FEES
Notwithstanding Article 3.11(2), Nicaragua may continue applying consular fees until
1 July 2006, in accordance with the Law on Consular Fees, Decree 351, published in Gazette
75 of 28 March 1980 ("Ley para Aranceles Consulares, Decreto Nº 351. La Gaceta Nº 75,
28 marzo 1980"), as described below:
1. Shipments, legalizations, manifests, etc.
Description Consular fee charged
(a) Maritime and air shipments and airmail postal packets, CIF value:
- US$ 50 to 500 US$ 20

- US$ 501 to 1000 US$ 25
- US$ 1001 to 10000 US$ 35
- US$ 10001 to 100000 US$ 50
- over US$ 10,0000, for each US$ 10,0000 or part thereof US$ 50
The foregoing fee includes forwarder’s bills of lading, commercial invoices and extra
copies if required.
- Regular postal packets valued at over US$ 10,000 US$ 35
(b) Legalization of sets of documents US$ 10
(c) Authentication of the signature of the authority on

any kind of document issued in a county US$ 25
(d) Letter of correction US$ 15
(e) Certificates of analysis US$ 25
(f) Certificates of origin US$ 25
(g) Cargo manifest US$ 100
(h) Additional cargo manifest US$ 25
(i) Ballast declaration US$ 50
(j) Passenger list US$ 25
(k) Crew list US$ 25
(l) List of stores US$ 25
(ll) Letter of correction of manifests US$ 25
(m) Certificate covering imports of firearms, explosives, etc. US$ 50
(n) Health certificate US$ 25

(o) Certificate that a good is freely sold US$ 25
(p) Animal health certificate US$ 25
(q) Health certificate for animal products US$ 25
2. The following consular fees will be charged by the Nicaraguan customs authorities for
approving a set of ballast declarations:
Description Consular fee applied
(a) Up to 50 tonnes registered US$ 15
(b) From 51 tonnes to 100 tonnes registered US$ 10
(c) Over 100 tonnes US$ 20

(d) Lack of a consular visa on any manifest, including a
vessel that is laden or in ballast not exceeding 50 tonnes US$ 20 (fine)
(e) lack of a consular visa on any manifest, including a vessel

that is laden or in ballast exceeding 50 tonnes US$ 100 (fine)
ANNEX 3.14
EXPORT DUTIES
For Costa Rica
Article 3.14 shall not apply to Costa Rica for the following goods:
(a) Bananas, as provided in Law 5515 of 19 April 1974 ("Ley Nº 5515 del 19 de abril de
1974") and amendments thereto, Law 5519 of 24 April 1974 ("Ley Nº 5519 del 24 de abril
de 1974") and amendments thereto and Law 4895 of 16 November 1971 ("Ley Nº 4895
del 16 de noviembre de 1971") and amendments thereto or under any equivalent successor
legislation;
(b) coffee, as provided in Law 2762 of 21 June 1961 ("Ley Nº 2762 del 21 de junio de
1961") and amendments thereto and Law 5519 of 24 May 1978 ("Ley Nº 5519 del 24 de
mayo de 1978") and amendments thereto or under any equivalent successor legislation; and
(c) beef and live cattle, as provided in Law 6247 of 24 May 1978 ("Ley Nº 6247 del 24
de mayo de 1978") and amendments thereto and Law 5519 ("Ley Nº 5519") and
amendments thereto or under any equivalent successor legislation.
For Honduras
Article 3.14 shall not apply to Honduras for bananas, with the duty being gradually
reduced to US$0.04 per 40-pound box, in accordance with Decree 131-98 of 20 May 1998
("Decreto 131-98 del 20 de mayo de 1998").
ANNEX 3.16
MEMBERS OF THE COMMITTEE ON TRADE IN GOODS
The Committee on Trade in Goods established in Article 3.16 shall be composed of:
(a) For Chile, the Directorate General of International Economic Relations of the
Ministry of Foreign Affairs ("Dirección General de Relaciones Económicas Internacionales,
Ministerio de Relaciones Exteriores") or its successor;
(b) for Costa Rica, the Ministry of Foreign Trade ("Ministerio de Comercio
Exterior") or its successor;
(c) for El Salvador, the Ministry of Economic Affairs ("Ministerio de Economía") or

its successor;
(d) for Guatemala, the Ministry of Economic Affairs ("Ministerio de Economía") or
its successor;
(e) for Honduras, the Directorate General of Economic Integration and Trade
Policy of the Department of Industry and Trade ("Dirección General de Integración Económica
y Política Comercial, Secretaría de Industria y Comercio") or its successor; and
(f) for Nicaragua, the Ministry of Development, Industry and Trade ("Ministerio de
Fomento, Industria y Comercio") or its successor.
CHAPTER 4. RULES OF ORIGIN
CIF means the value of imported goods, including the cost of insurance and freight,
at the port or point of introduction into the importing country;
F.O.B. means free on board, regardless of the mode of transportation, at the port or
point of shipment abroad;
fungible goods means goods that are interchangeable for commercial purposes and
whose properties are essentially identical, which cannot be differentiated by a simple visual
examination;
Generally accepted accounting principles means the principles used in the territory of
each Party that confer substantial authoritative support with respect to the recording of
revenues, expenses, costs, assets and liabilities, relating to information and preparation of
financial statements. These standards may be broad guidelines of general application as well
as detailed standards, practices and procedures;
goods wholly obtained or produced entirely in the territory of one or more Parties
means:
(a) Mineral goods extracted in the territory of one or more Parties;
(b) vegetable goods harvested in the territory of one or more Parties;
(c) live animals born and raised in the territory of one or more Parties;
(d) goods obtained from hunting or fishing in the territory of one or more Parties;
(e) fish, shellfish and other marine life taken from the sea outside the territorial
waters and maritime zones where the Parties exercise jurisdiction by vessels registered or
recorded with a Party and flying its flag or vessels leased by companies established in the
territory of a Party;
(f) goods produced on board factory ships from the goods referred to in
subparagraph (e), provided such factory ships are registered or recorded with that Party and
fly its flag or on factory ships leased by companies established in the territory of a Party;
(g) goods taken by a Party or a person of a Party from the seabed or marine
subsoil outside territorial waters, provided that a Party has rights to exploit such seabed or
marine subsoil;
(h) waste and scrap derived from:
(i) Production in the territory of one or more Parties; or
(ii) used goods collected in the territory of one or more Parties, provided
such goods are fit only for the recovery of raw materials; or
(iii) goods produced in the territory of one or more Parties exclusively

from goods referred to in subparagraphs (a) through (h), or from their derivatives, at any
stage of production;
indirect material means a good used in the production, testing or inspection of

another good but not physically incorporated into it, or a good used in the maintenance of
buildings or the operation of equipment associated with the production of a good, including:
(a) Fuel, energy, catalysts and solvents;
(b) equipment, devices, and supplies used for testing or inspecting the goods;
(c) gloves, glasses, footwear, clothing, safety equipment and supplies;
(d) tools, dies and moulds;
(e) spare parts and materials used in the maintenance of equipment and
buildings;
(f) lubricants, greases, compounding materials and other materials used in

production or to operate equipment and buildings; and
(g) any other goods or products 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;
material means a good that is used in the production or processing of another good
and includes components, inputs, raw materials, parts and pieces;
producer means a person who grows, mines, harvests, raises, fishes, hunts,
manufactures, processes or assembles a good;
production means growing, mining, harvesting, birthing and raising, fishing, hunting,
manufacturing, processing or assembling a good;
transaction value of a good means the price actually paid or payable for a good with
respect to a transaction of the producer of the good, adjusted in accordance with the
principles of Article 1 and paragraphs 1, 3 and 4 of Article 8 of the Customs Valuation
Agreement, regardless of whether the good is sold for export. For the purposes of this
definition, the vendor referred to in the Customs Valuation Agreement shall be the producer
of the good;
transaction value of a material means the price actually paid or payable for a material
with respect to a transaction of the producer of the good, adjusted in accordance with the
principles of Article 1 and paragraphs 1, 3 and 4 of Article 8 of the Customs Valuation
Agreement, regardless of whether the material is sold for export. For the purposes of this
definition, the vendor referred to in the Customs Valuation Agreement shall be the supplier
of the material and the buyer referred to in the Customs Valuation Agreement shall be the
producer of the good; and
value means the value of a good or material determined in accordance with the
Customs Valuation Agreement.
Article 4.02 Instruments of application and interpretation
1. For the purposes of this Chapter:
(a) The basis for tariff classification of goods is the Harmonized System; and
(b) the value of a good or material shall be determined on the basis of the
principles of the Customs Valuation Agreement.
2. In applying the Customs Valuation Agreement under this Chapter to determine the
origin of a good:
(a) 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; and
(b) the provisions of this Chapter shall take precedence over the Customs
Valuation Agreement to the extent of any difference.
3. A Party may only accumulate origin with originating goods from countries in which
this Agreement has come into force.
4. In cases where there is no specific rule of origin common to all the Parties for a good,
the rules of origin of this Chapter shall apply only between the exporting Party and the
importing Party, considering the other Parties that do not have that specific common rule of
origin as non-Party countries.
5. Two years after this Agreement comes into force for all the Parties, they shall
establish a programme of work to examine the possibility that materials of Chilean origin can
be accumulated for the purpose of complying with the rules of origin in effect among the
Central American countries. This shall apply provided the end good into which the materials
are incorporated is subject to free trade between Chile and each Central American country
and among the latter.
6. Notwithstanding paragraph 5, if the Central American countries accord the treatment

referred to in Article 4.02(5) to a non-Party country before they accord it to Chile, they
shall accord treatment no less favourable to goods of Chilean origin.
Article 4.03 Originating goods
1. Except as otherwise provided in this Chapter, a good shall be considered originating

where:
(a) The good is wholly obtained or produced entirely in the territory of one or
more of the Parties;
(b) the good is produced entirely in the territory of one or more of the Parties
exclusively from originating materials as defined in this Chapter;
(c) the good is produced in the territory of one or more of the Parties from non-
originating materials that undergo a change in tariff classification, comply with a regional
value content or meet other requirements, as set out in Annex 4.03, and the good satisfies
all other applicable provisions of this Chapter; or
(d) the good is produced in the territory of one or more of the Parties but one or
more of the non-originating materials that are used in the production of the good do not
undergo a change in tariff classification because:
(i) The good was imported into the territory of a Party in an unassembled or a
disassembled form but was classified as an assembled good pursuant to Rule 2(a) of the
General Rules of Interpretation of the Harmonized System;
(ii) the heading for the good provides for and specifically describes both the good itself
and its parts, provided the heading is not divided into subheadings; or
(iii) the subheading provides for and specifically describes the good and its parts;
provided that the regional value content of the good, determined in accordance with
Article 4.07, is not less than 30 per cent and the good satisfies all other applicable
requirements of this Chapter, unless the applicable rule of Annex 4.03 under which it is
classified specifies a different regional value content requirement, in which case that
requirement is to be applied. The provisions of this subparagraph do not apply to the goods
included in Chapters 61 to 63 of the Harmonized System.
2. If a Party complies with the specific rule of origin established in Annex 4.03, it shall
not be required to comply as well with the regional value content established in
paragraph 1(d).
3. For the purposes of this Chapter, a good produced from non-originating materials
that undergo a change in tariff classification and satisfy the other requirements set out in
Article 4.03 shall have been produced entirely in the territory of one or more of the Parties
and the entire regional value content of the good shall be met in the territory of one or more
of the Parties.
4. Notwithstanding this Article, goods shall not be considered originating despite

complying with the requirement of a change in tariff classification of their materials, where
the goods are exclusively the result of the operations established in Article 4.04 performed
in the territory of the Parties through which they acquire the final form in which they will be
sold, where such operations have used non-originating materials, unless the specific rule of
origin of Annex 4.03 states otherwise.
Article 4.04 Minimum operations or processes

The minimum operations or processes which in themselves or in combination do not
confer origin on a good are:
(a) Airing, ventilating, drying, refrigeration, freezing;
(b) cleaning, washing, sifting, screening, selection, classification or grading,

thinning;
(c) peeling, husking, shelling, boning, squeezing, macerating;
(d) dusting, removal of damaged parts, oiling, painting to prevent rust or provide
protective covering;
(e) testing or calibrating, division of bulk shipments, grouping into packets,

application of marks, labels or distinguishing signs on products or their packages;
(f) packing, unpacking or repacking;
(g) dilution with water or another aqueous solution, ionization and salting;
(h) the simple collection or assembly of parts to form a complete good, make a
set or assortment; and
(i) slaughtering animals.
Article 4.05 Indirect materials
An indirect material shall be considered to be an originating material without regard

to where it is prepared or produced and the value of such material shall be the cost reported
in the accounting records of the producer of the good.
Article 4.06 Accumulation
1. Materials or goods originating in the territory of a Party incorporated into a good in

the territory of another Party shall be considered originating in the territory of the latter
Party.
2. For the purposes of determining whether a good is an originating good, the producer
of a good may choose to accumulate own production with that of one or more producers in
the territory of one or more Parties of materials that are incorporated into that good, so
that the production of the materials is considered to have been performed by that producer,
provided the good complies with the requirements of Article 4.03.
Article 4.07 Regional value content
1. The regional value content of goods shall be calculated on the basis of the following
formula:
RVC = [(TV - VNM) / TV] * 100
where:
RVC is the regional value content, expressed as a percentage;

TV is the transaction value of the good adjusted to a F.O.B. basis, except as
provided in paragraph 2. In the event there is no transaction value or one cannot be
determined under Article 1 of the Customs Valuation Agreement, the value shall be
determined in accordance with Articles 2 through 7 of that Agreement; and
VNM is the transaction value of non-originating materials adjusted to a CIF basis, except as
provided in paragraph 5. In the event there is no transaction value or one cannot be
determined under Article 1 of the Customs Valuation Agreement, the value shall be
determined in accordance with Articles 2 through 7 of that Agreement.
2. Where the producer of the good does not export it directly, the transaction value
shall be adjusted to the point at which the purchaser receives the good within the territory
where the producer is located.
3. Where origin is determined on the basis of the regional value content method, the
required percentage shall be specified in Annex 4.03.
4. All the costs considered in calculating the regional value content shall be recorded
and maintained in accordance with the Generally Accepted Accounting Principles applicable in
the territory of the Party in which the good is produced.
5. Where the producer of a good buys a non-originating material in the territory of the
Party where the producer is located, the value of the non-originating material shall not
include freight, insurance, packing or any other cost incurred in transporting the material
from the warehouse of the supplier to the location of the producer.
6. To calculate the regional value content, the value of the non-originating materials
used in the production of a good shall not include the value of the non-originating materials
used in the production of an originating material bought and used in the production of that
good.
Article 4.08 De minimis
1. A good that does not undergo a change in tariff classification as established in

Annex 4.03 shall be considered to be an originating good if the value of all non-originating
materials used in the production of the good that do not undergo a change in tariff
classification is not more than eight per cent of the value of the good calculated on the
basis of Article 4.07.
2. For goods classified in Chapters 50 to 63 of the Harmonized System, the percentage

established in paragraph 1 refers to the weight of the fibres and yarns compared to the
weight of the good produced.
3. Paragraph 1 does not apply to a non-originating material used in the production of a

good provided for in Chapters 1 to 27 of the Harmonized System unless the non-originating
material is provided for in a different subheading than the good for which origin is being
determined under this Article.
Article 4.09 Fungible goods

1. Where originating and non-originating fungible goods are used in the preparation or
production of a good, the origin of that good may be determined by applying one of the
following inventory-management methods, at the choice of the producer:
(a) First-in-first-out (FIFO);
(b) last-in-first-out (LIFO); or
(c) method of averages.
2. Where originating and non-originating fungible goods are physically commingled in the
inventory and do not undergo any productive process or any other operation in the territory
of the Party in which they were physically commingled, other than unloading, reloading or
any other movement necessary to maintain the goods in good condition or ship them to the
territory of another Party, the origin of the good may be determined on the basis of one of
the inventory management methods.
3. Once one of the inventory management methods has been selected, it shall be used
during the entire fiscal year or period.
Article 4.10 Sets and assortments of goods
1. Sets and assortments of goods classified as provided in Rule 3 of the General Rules
of Interpretation of the Harmonized System and goods whose description under the
nomenclature of the Harmonized System is specifically that of a set or assortment shall
qualify as originating, provided that each of the goods in the set or assortment complies
with the rules of origin established in this Chapter and in Annex 4.03.
2. Notwithstanding paragraph 1, a set or assortment of goods shall be considered

originating if the value of all the non-originating goods used to form the set or assortment
does not exceed the percentage established in Article 4.08(1) of the value of the set or
assortment, adjusted on the basis of Article 4.07 (1) or (2), as applicable.
3. The provisions of this Article shall take precedence over the specific rules established
in Annex 4.03.
Article 4.11 Accessories, spare parts and tools
1. Accessories, spare parts or tools delivered with the good and which form a standard
part of the good shall 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 4.03, provided that:
(a) The accessories, spare parts or tools are not invoiced separately from the good,
regardless of whether they are listed separately in the invoice; and
(b) the quantities and value of the accessories, spare parts or tools are customary for
the good to be classified.
2. If the good is subject to a regional value content requirement, the value of the
accessories, spare parts or tools 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.
3. The rule of origin corresponding to each of them separately shall be applied to
accessories, spare parts and tools that do not comply with the foregoing conditions.
Article 4.12 Packaging materials and containers in which a good is packaged for retail sale
1. Packaging materials and containers in which a good is packaged for retail sale shall, if
classified with the good in the Harmonized System, be disregarded in determining whether all
the non-originating materials used in the production of the good undergo the applicable
change in tariff classification set out in Annex 4.03.
2. 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 4.13 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 4.03; and
(b) the good satisfies a regional value content requirement.
Article 4.14 Direct transhipment and shipment and international transit
1. A good shall not lose its originating status when exported from one Party to another
Party and in transit through the territory of any Party or non-Party, provided:
(a) The transit is justified for geographical reasons or considerations related to

international transport requirements;
(b) it is not destined for trade or use in the country or countries of transit;
(c) it does not undergo, during its transport or storage, any operation other than
packaging, packing, repacking, loading, unloading or handling to ensure its conservation; and
(d) it remains under the control or supervision of the customs authority in the
territory of the Party or non-Party.
2. Otherwise, the good shall lose its originating status.
ANNEX 4.03
SPECIFIC RULES OF ORIGIN
Section A – General Interpretative Note
1. A requirement of a change in tariff classification is applicable only to non-originating

materials.
2. Where a specific rule of origin is defined on the basis of a change in tariff
classification and in its wording exceptions are made for classifications on the chapter,
heading or subheading level in the Harmonized System, it shall be interpreted that the
materials in those tariff classifications must be originating for the good to qualify as
originating.
3. The excepted materials separated by commas and with the disjunction ("or"), must
be originating for the good to qualify as originating, even in the event that one or more of
the materials covered by the exception is used in its production.
Section B – Specific Rules of Origin Applicable Between Chile and Costa Rica,
El Salvador, Guatemala, Honduras and Nicaragua
Section I. Live Animals and Animal Products
Chapter 01 Live animals

01.01 – 01.05 The animals in this heading shall originate in the country of
birth and rearing;
or a change to heading 01.01 through 01.05 from any other chapter.
01.06 The animals in this heading shall originate in the country of birth
and/or
Rearing or capture; or a change to heading 01.06 from any other chapter.
Chapter 02 Meat and edible offal

02.01 – 02.10 The products in this heading shall originate in the country of
birth and
rearing of the animal.
Chapter 03 Fish and crustaceans, molluscs and other aquatic invertebrates

03.01 – 03.04 A change to heading 03.01 through 03.04 from any other
chapter,
with the import of fry permitted.
03.06 – 03.07 The products in this heading shall originate in the country
where the
crustacean, mollusc or other aquatic invertebrate was caught or from
the
raising of larvae; or a change to heading 03.06 through 03.07 from
any other
chapter, with the import of larvae and fry permitted.
Chapter 04 Milk and dairy produce; birds’ eggs; natural honey; edible products
of animal origin, not elsewhere specified or included
where the milk
was obtained in natural or unprocessed state; or a change to heading
04.01
through 04.02, from any other chapter except subheading 1901.90.
where the
eggs, natural or unprocessed honey and other products of animal
origin not
elsewhere specified or included were obtained; or a change to heading
04.07 through 04.10 from any other chapter.
Chapter 05 Products of animal origin, not elsewhere specified or included

chapter.
Section II. Vegetable Products

Note to Section II: Plant products (vegetables, fruit, forest products, etc.) grown in the
territory of a Party shall be treated as originating in that Party even if they have been grown
from seeds, bulbs, cuttings, grafts, buds or other living parts of plants imported from a Party
or non-Party.
Chapter 06 Live plants and floriculture products

where they were
grown or reproduced; or a change to heading 06.01 through 06.04
from any other chapter.
Chapter 07 Edible vegetables, plants, roots and tubers

where they were
grown in their natural or unprocessed state; or a change to heading
07.01
Chapter 08 Edible fruit and nuts; peel of citrus fruit or melons

where they were
grown; or a change to heading 08.01 though 08.14 from any other
chapter.
Chapter 09 Coffee, tea, maté and spices

09.01 The products in this heading shall originate in the country where the
plant
was grown and where the product was obtained; or a change to
heading 09.01
09.02 No change in tariff classification is required provided the regional value
content is not less than 30%.
plant
heading 09.03
0904.20 The products in this subheading shall originate in the country where
the
plant was grown and where the product was obtained; or a change to
subheading 0904.20 from any other chapter, except subheading
0709.60.
plant
heading 09.05
where the plant
heading 09.07
through 09.09 from any other chapter.
Chapter 10 Cereals
where they were
grown; or a change to heading 10.01 through 10.08 from any other
chapter.
Chapter 11 Products of the milling industry; malt; starches; inulin; wheat gluten
chapter.
1108.11 A change to subheading 1108.11 from any other heading.
1108.19 – 1108.20 A change to subheading 1108.19 through 1108.20 from any other
heading.
Chapter 12 Oil seeds and oleaginous fruits; miscellaneous seeds and fruit;
industrial or medicinal plants; straw and fodder
where they were
grown; or a change to heading 12.01 through 12.07 from any other chapter.
where they were
chapter.
Chapter 13 Gums, resins and other vegetable saps and extracts

where they
were obtained by extraction, exudation or incision; or a change to
heading
13.01 through 13.02 from any other chapter.
Chapter 14 Vegetable plaiting materials; vegetable products not elsewhere

specified or included
where they were
chapter.
Section IV. Prepared Foodstuffs; Beverages, Spirits and Vinegar; Tobacco and Manufactured
Tobacco Substitutes
Chapter 16 Preparations of meat, of fish or of crustaceans, molluscs or other

aquatic invertebrates
chapter.
Chapter 17 Sugars and sugar confectionery

chapter.
Chapter 18 Cocoa and cocoa preparations

where they were
grown; or a change to heading 18.01 a 18.02 from any other chapter.
Chapter 21 Miscellaneous edible preparations

heading.
heading.
21.04 A change to heading 21.04 from any other heading.
Chapter 22 Beverages, spirits and vinegar

22.01 The products in this heading shall originate in the country where
water, ice
and snow are obtained in a natural state; or a change to heading
22.01 from
any other chapter.
chapter.
Chapter 24 Tobacco and manufactured tobacco substitutes

24.01 A change to heading 24.01 from any other chapter.
Section V. Mineral Products
Chapter 25 Salt; sulphur; earths and stone; plastering materials, lime and
cement
chapter.
Chapter 26 Ores, slag and ash

heading.
Chapter 27 Mineral fuels, mineral oils and products of their distillation;

bituminous substances; mineral waxes
Note to heading 27.15 For heading 27.15, the deliberate and proportionately
controlled mixture of materials (other than simple dilution with water) following pre-
determined specifications that result in a product that possesses physical or chemical
characteristics that are relevant for a different purpose or use than the initial materials, is
considered to have undergone a substantial transformation.
chapter.
heading.
27.16 This product originates in the country where the electric power is
generated; or a change to heading 27.16 from any other heading.
Section VI. Products of the chemical or allied industries
Notes to Section VI:

1. Chemical reaction: a "chemical reaction" is a process (including biochemical
processes) that produces a molecule with a new structure through the breakdown of intra-
molecular links and the formation of new ones or through the alteration of the spatial
distribution of the atoms of a molecule. The following operations are not considered to be
chemical reactions for the purposes of the present definition:
(a) Dilution in water or other solvents;
(b) the removal of solvents, including dissolved water; and
(c) the addition or removal of crystallization water.
2. Purification: the purification brought about by removing 80 per cent of the impurity
content or the reduction or elimination that produces a chemical with a minimum degree of
purity to make the product suitable for uses such as:
(a) Pharmaceutical substances or food products that comply with national

standards or the international pharmacopoeia;
(b) reagents for chemical analysis or for laboratory use;
(c) elements and components for use in microelectronics;
(d) different optical applications; and
(e) human or veterinary use.
Chapter 28 Inorganic chemicals; organic or inorganic compounds of precious

metals, of radioactive elements, of rare-earth metals or of isotopes
Notes to Chapter 1. Standard solution: "standard solutions" are preparations apt
28: for analytical use, testing or reference, with degrees of purity or
proportions guaranteed by the manufacturer.
The preparation of standard solutions confers origin.
2. Separation of isomers: the isolation or separation of isomers
from a mixture of isomers confers origin.
subheading.
Chapter 29 Organic chemicals

subheading.
Chapter 31 Fertilizers
Chapter 32 Tanning or dyeing extracts; tannins and their derivatives;
pigments and other colouring matter; paints and varnishes; putty;
inks
Chapter 33 Essential oils and resinoids; perfumery, cosmetic or toilet

preparations
Notes to Chapter 33: Separation of isomers: the isolation or separation of isomers
heading.
Chapter 34 Soap, organic surface-active agents, washing preparations, lubricating

preparations, artificial waxes, prepared waxes, polishing or scouring
preparations, candles and similar articles, modelling pastes, "dental
waxes" and dental preparations with a basis of plaster
34.03-34.07 A change to heading 34.03 through 34.07 from any other heading.
Chapter 35 Albuminoidal substances; modified starches; glues; enzymes

heading.
Chapter 36 Explosives; pyrotechnic products; matches; pyrophoric alloys; combustible

materials
heading.
Chapter 37 Photographic or cinematographic goods

heading.
Chapter 38 Miscellaneous chemical products

heading.
subheading.
Section VII. Plastics and Articles Thereof; Rubber and Articles Thereof
Chapter 40 Rubber and articles thereof

40.01 The products in this heading shall originate in the country where
they are obtained in their natural state.
heading.
Section VIII. Raw Hides and Skins, Leather, Furskins and Articles Thereof; Saddlery and
Harness; Travel Goods, Handbags and Similar Containers; Articles of Animal Gut
Chapter 41 Raw hides and skins (other than furskins) and leather
chapter.
heading, including
a change from wet blue hides and skins to tanned hides and skins.
Chapter 42 Articles of leather; saddlery and harness; travel goods, handbags and
similar containers; articles of animal gut
heading, provided
the products are cut to shape or fully assembled in one of the Parties
Chapter 43 Furskins and artificial fur; manufactures thereof

heading.
Section IX. Wood and Articles of Wood; Wood Charcoal; Cork and Articles of Cork;
Manufactures of Esparto or Basketware
Chapter 45 Cork and articles of cork

heading.
Chapter 46 Manufactures of esparto or basketware

heading.
Section X. Pulp of Wood or of other Fibrous Cellulosic Material; Paper or Paperboard for
Recycling (Waste and Scrap); Paper and Paperboard and Articles Thereof
Chapter 47 Pulp of wood or of other fibrous cellulosic material; paper or

paperboard for recycling (waste and scrap)
heading.
Chapter 48 Paper and paperboard; articles of paper pulp, of paper or of

paperboard
heading.
heading.
48.16 A change to heading 48.16 from any other heading, except from
Chapter 48 Paper and paperboard; articles of paper pulp, of paper or of
paperboard
heading 48.09.
heading,
except from heading 48.03.
heading.
heading.
4820.40 A change to subheading 4820.40 from any other heading, except
from
subheading 4811.90.
heading.
4823.51 A change to subheading 4823.51 from any other heading, except
from
subheading 4811.90.
heading.
Chapter 49 Printed books, newspapers, pictures and other products of the

printing industry; manuscripts, typescripts and plans
chapter.
Section XI. Textiles and Textile Articles
Chapter 50 Silk
heading.
Chapter 51 Wool, Fine or Coarse Animal Hair; Horsehair Yarn and Woven Fabric
heading.
Chapter 52 Cotton
heading.
Chapter 53 Other vegetable textile fibres; paper yarn and woven fabrics of
paper yarn
heading.
Chapter 55 Man-made staple fibres

heading.
heading.
Section XII. Footwear, Hats and Other Headgear, Umbrellas, Sun Umbrellas, Walking-Sticks,
Seat-Sticks, Whips, Riding-Crops and Parts Thereof; Prepared Feathers and Articles Made
Therewith; Artificial Flowers; Articles of Human Hair
Chapter 65 Hats and other headgear and parts thereof

heading.
Chapter 66 Umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-

crops and parts thereof
heading.
Chapter 67 Prepared feathers and down and articles made of feathers or of down;
artificial flowers; articles of human hair
heading.
Section XIII. Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials; Ceramic
Products; Glass and Glassware
Chapter 68 Articles of stone, plaster, cement, asbestos, mica or similar materials

chapter.
subheading.
heading.
Chapter 69 Ceramic products

heading.
Chapter 70 Glass and glassware

heading.
70.19 A change to heading 70.19 from any other subheading.
Section XIV. Natural or Cultured Pearls, Precious or Semi-precious Stones, Precious Metals,
Metals Clad with Precious Metal, and Articles Thereof; Imitation Jewellery; Coin
Chapter 71 Natural or cultured pearls, precious or semi-precious stones, precious

metals, metals clad with precious metal, and articles thereof;
imitation jewellery; coin
heading.
Section XV. Base Metals and Articles of Base Metal
Chapter 72 Iron and steel

heading.
heading.
heading.
Chapter 73 Articles of iron and steel

chapter.
heading.
heading.
heading.
heading.
Chapter 74 Copper and articles thereof

heading.
Chapter 75 Nickel and articles thereof

heading.
Chapter 76 Aluminium and articles thereof

heading.
heading.
heading.
Chapter 78 Lead and articles thereof

heading.
Chapter 79 Zinc and articles thereof

heading.
heading.
Chapter 80 Tin and articles thereof

heading.
heading.
Chapter 81 Other base metals; cermets; articles thereof

subheading.
Chapter 82 Tools, implements, cutlery, spoons and forks, of base metal; parts
thereof of base metal
heading.
heading, even
blanks.
heading.
Chapter 83 Miscellaneous articles of base metal

heading.
heading.
heading.
Section XVI. Machinery and Appliances, Electrical Equipment and Parts Thereof; Sound
Recorders and Reproducers, Television Image and Sound Recorders and Reproducers, and
Parts and Accessories of Such Articles
Chapter 84 Nuclear reactors, boilers, machinery and mechanical appliances; parts

thereof
heading; or
a change to subheading 8401.10 through 8401.30 from any other
subheading
complying with a regional value content of not less than 30%.
heading; or
subheading
8403.10 A change to subheading 8403.10 from any other heading; or a change
to subheading 8403.10 from any other subheading complying with a
regional value content of not less than 30%.
heading; or
thereof
subheading
heading; or
subheading
chapter; or
a change to heading 84.07 through 84.08 from any other heading
complying
with a regional value content of not less than 30%.
subheading.
heading; or
subheading
heading; or
subheading
heading.
84.14 A change to heading 84.14 from any other heading; or a change to
heading 84.14 from any other subheading complying with a regional
content value of not less than 30%.
heading; or
subheading
heading; or
subheading
thereof
subheading
outside the group, except from subheading 8418.91.
8418.50 A change to subheading 8418.50 from any other subheading
subheading
outside the group, except subheading 8418.91.
heading.
heading; or
subheading complying with a regional value content of not less than
30%.
heading.
heading; or
subheading
chapter; or
complying
subheading.
heading; or
subheading
regional value content of not less than 30 %.
heading; or
thereof
subheading
heading.
heading; or
subheading
heading; or
30%.
heading.
heading; or
30%.
heading; or
30%.
heading.
heading; or
subheading
chapter; or
complying
heading.
heading; or
thereof
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
chapter; or
complying
heading; or
subheading
heading.
heading; or
thereof
subheading
chapter; or
complying
84.72 A change to heading 84.72 from any other chapter; or a change to
heading 84.72 from any other heading complying with a regional
heading.
heading.
heading; or
subheading
heading; or
subheading
subheading, except the furniture in subheading 8476.90.
heading; or
subheading
heading; or
subheading
84.80 A change to heading 84.80 from any other heading; or a change in
tariff
classification is not required where the regional value content is not
less than 30%.
thereof
heading; or
subheading
heading.
heading; or
subheading
heading; or a
change in tariff classification is not required, when the regional
content
value is not less than 30%.
Chapter 85 Electrical machinery and equipment and parts thereof; sound recorders and
reproducers, television image and sound recorders and reproducers, and parts and
accessories of such articles
chapter; or
complying
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
subheading.
8516.60 A change to subheading 8516.60 from any other subheading, except
furniture whether or not assembled, cooking stoves whether or not assembled and the top
surface panel with or without heating elements or controls, classified in subheading
8516.90.
heading; or
subheading
heading.
heading; or
subheading. complying with a regional value content of not less than
30%.
heading; or
subheading
chapter; or
complying
heading; or
a change in tariff classification is not required, complying with a
regional
chapter; or
complying
chapter;
or a change to subheading 8528.13 through 8528.30 from any other
heading
heading; or
subheading
heading; or
subheading
subheading.
85.35 A change to heading 85.35 from any other chapter; or a change to
heading 85.35 from any other heading complying with a regional
heading; or
subheading
heading.
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading.
Section XVII. Transport Equipment
Chapter 86 Railway or tramway locomotives, rolling-stock and parts thereof;

mechanical (including electro-mechanical) traffic signalling
equipment
heading.
Chapter 87 Automotive vehicles, tractors, velocipedes and other land vehicles;

parts and accessories thereof
Chapter 88 Aircraft, spacecraft, and parts thereof

heading.
Chapter 89 Ships and floating structures

heading.
Section XVIII. Optical, Photographic, Cinematographic, Measuring, Checking or Precision

Instruments and Apparatus; Medical or Surgical Instruments and Apparatus; Clocks and
Watches; Musical Instruments; Parts and Accessories Thereof
Chapter 90 Optical, photographic, cinematographic, measuring, checking or precision
instruments and apparatus; medical or surgical instruments and apparatus; parts and
accessories thereof
heading.
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading.
heading; or
subheading
heading.
heading; or
subheading. complying with a regional value content of not less than
30%.
heading; or
subheading
heading; or
accessories thereof
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
90.16 A change to heading 90.16 from any other heading; or no change in
tariff
classification is required where the regional content value is not less
than
30%.
heading; or
subheading
heading; or
regional
regional content value of not less than 30%.
heading; or
accessories thereof
subheading
90.23 A change to heading 90.23 from any other heading; or no change in
tariff
classification is required where the regional content value is not less
than 30%.
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
heading; or
subheading
accessories thereof
heading; or
subheading
heading; or
subheading
Chapter 91 Clocks and watches and parts thereof

heading.
Chapter 92 Musical instruments; parts and accessories thereof

heading.
Section XIX. Arms and Ammunition; Parts and Accessories Thereof
Chapter 93 Arms and ammunition; parts and accessories thereof

heading.
Section XX. Miscellaneous Manufactured Articles
Chapter 94 Furniture; medical furniture; bedding and similar furnishings; lamps and
lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-
plates and the like; prefabricated buildings
Chapter 95 Toys, games and sports equipment; parts and accessories thereof
heading.
Chapter 96 Miscellaneous manufactured articles

heading.
subheading.
subheading.
9608.10- 9608.40 A change to subheading 9608.10 through 9608.40 from any other
subheading, except from subheading 9608.60; or a change to
subheading
9608.10 through 9608.40 from any other subheading complying with
a
subheading.
heading.
subheading.
heading.
heading; or
regional
Section XXI. Works of Art, Collectors’ Pieces and Antiques
Chapter 97 Works of art, collectors’ pieces and antiques

97.01 – 97.05 The goods in this heading shall originate in the country where
they were
obtained or produced; or a change to heading 97.01 through 97.05
from
any other heading.
97.06 The goods in this heading shall be originating when they have
remained
for more than 100 years in any of the Parties.
SECTION C
CHAPTER 5. CUSTOMS PROCEDURES
competent authority means the authority which, under the law of each Party, is
responsible for the administration and application of its customs laws and regulations and/or
the administration and/or application of this Chapter and Chapters 3 (National Treatment
and Market Access) and 4 (Rules of Origin) and the Uniform Regulations, as appropriate. The
Uniform Regulations shall specify the competent authorities of each Party;
commercial importation means the importation of a good into the territory of a Party
for the purpose of sale, or any commercial, industrial or other like use;
determination of origin means a determination issued as the result of a verification of
origin, establishing whether a good qualifies as an originating good, in accordance with
Chapter 4 (Rules of Origin);
exporter means an exporter located in the territory of a Party from which the good is
exported, required under this Chapter to maintain the records in the territory of that Party
referred to in Article 5.04(5);
identical goods means "identical goods" as defined in the Customs Valuation

Agreement;
importer means an importer located in the territory of a Party to which the good is
imported, required under this Chapter to maintain the records in the territory of that Party
referred to in Article 5.03(4);
origin verification means the administrative process that begins with notification of
the initiation of a verification by the competent authority of a Party and concludes with the
final determination of origin;
preferential tariff treatment means the duty rate applicable to an originating good in
accordance with the Tariff Elimination Programme; and
producer means a person who grows, raises mines, harvests, fishes, hunts,
manufactures, processes or assembles a good, located in the territory of a Party, who is
required to keep the records referred to in Article 5.04(5) in the territory of that Party.
2. Except as otherwise defined in this Article, this Chapter includes the definitions
established in Chapter 4 (Rules of Origin).
Article 5.02 Declaration and certification of origin
1. On the date on which this Agreement comes into force, the Parties shall prepare a
single form for the certificate of origin and a single form for the declaration of origin, which
may be modified by mutual agreement.
2. The certificate of origin referred to in paragraph 1 shall serve to certify that a good
exported from the territory of one Party to the territory of another Party qualifies as an
originating good. The certificate shall remain valid for up to two years after it is signed.
3. Each Party shall require its exporters to complete and sign a certificate of origin for
any exportation of a good for which an importer may claim preferential tariff treatment.
4. Each Party shall require that:
(a) Where an exporter is not the producer of the good, the exporter may
complete and sign a certificate of origin on the basis of
(i) Its knowledge of whether the good qualifies as an originating good;
(ii) its reasonable reliance on the producer’s written representation that the good
qualifies as an originating good; or
(iii) the declaration of origin referred to in paragraph 1; and

(b) the declaration of origin applicable to the good to be exported shall be
completed and signed by the producer of the good and given voluntarily to the exporter.
The declaration shall remain valid for up to two years after it is signed.
5. Each Party shall provide that a certificate of origin that has been completed and
signed by an exporter in the territory of the other Party is applicable to:
(a) A single importation of one or more goods; or
(b) multiple importations of identical goods within a specified period, not exceeding
12 months, set out in the certificate by the exporter.
Article 5.03 Obligations regarding importations
1. Each Party shall require an importer in its territory that claims preferential tariff
treatment for a good imported into its territory from the territory of another Party to:
(a) Make a written declaration, using the import document established in its law,
based on a valid certificate of origin, that the good qualifies as an originating good;
(b) have the certificate of origin in its possession at the time the declaration referred to
in (a) is made;
(c) provide, on the request of that Party’s competent authority, a copy of the certificate
of origin; and
(d) promptly make a corrected declaration and pay any duties owing where the importer
has reason to believe that a certificate on which a declaration was based contains
information that is not correct. If the importer complies with the above obligation, it shall
not be subject to penalties.
2. Each Party shall provide that where an importer in its territory fails to comply with
any of the requirements established in this Chapter, it shall be denied the preferential tariff
treatment claimed for the good imported into the territory of the other Party.
3. Each Party shall provide that, where a good would have qualified as an originating
good when it was imported into the territory of that Party but no claim for preferential tariff
treatment was made at that time, the importer of the good may, no later than one year
after the date on which the good was imported, apply for a refund of any excess duties paid
as the result of the good not having been accorded preferential tariff treatment, on
presentation of:
(a) A written declaration that the good qualified as originating at the time of
importation;
(b) a copy of the certificate of origin; and
(c) such other documentation relating to the importation of the good as that Party may
require.
4. Each Party shall provide that an importer that claims preferential tariff treatment for
a good imported into its territory from the territory of another Party shall retain the
certificate of origin and other documentation relating to the importation required by the
importing Party for a minimum period of five years after the date of the import.
Article 5.04 Obligations regarding exportations
1. Each Party shall provide that an exporter or a producer in its territory that has
completed and signed a certificate or declaration of origin shall provide a copy of the
certificate or declaration to its competent authority on request.
2. Each Party shall provide that an exporter or a producer in its territory that has
completed and signed a certificate or declaration of origin, and that has reason to believe
that the certificate contains information that is not correct, shall promptly notify in writing
all persons to whom the certificate or declaration was given of any change that could affect
the accuracy or validity of the certificate or declaration and its competent authority. In such
cases, the exporter or producer shall not be subject to penalties for having presented an
incorrect certificate or declaration.
3. Each Party shall provide that the competent authority of the exporting Party shall
inform the competent authority of the importing Party in writing of the notification referred
to in paragraph 2.
4. Each Party shall provide that a false certification or declaration by an exporter or a

producer in its territory that a good to be exported to the territory of another Party qualifies
as an originating good shall have similar legal consequences, with appropriate modifications,
as would apply to an importer in its territory for a contravention of its customs laws and
regulations regarding the making of a false declaration or representation.
5. Each Party shall provide that its exporter or producer that completes and signs a
certificate or declaration of origin shall retain for a minimum period of five years after the
date on which the certificate or statement was signed, all the records and documents
relating to the origin of the good, including those referring to:
(a) The purchase, costs, value and payment of the good exported from its
territory;
(b) the purchase, costs, value and payment of all the materials, including indirect
materials, used in the production of the good exported from its territory; and
(c) production of the good in the form in which it is exported from its territory.
Article 5.05 Exceptions
Provided that an importation does not form part of two or more importations that
may be considered to have been undertaken or arranged for the purpose of avoiding the
certification requirements of Articles 5.02 and 5.03, a Party shall not require a certificate of
origin in the following cases:
(a) A commercial importation of a good whose customs value does not exceed
US$1,000 or its equivalent amount in the Party’s currency, or such higher amount as it may
establish, except that it may require that the invoice accompanying the importation include a
declaration by the importer or exporter certifying that the good qualifies as an originating
good;
(b) a non-commercial importation of a good whose value does not exceed US$1,000 or
its equivalent amount in the Party’s currency, or such higher amount as it may establish; or
(c) an importation of a good for which the Party into whose territory the good is
imported has waived the requirement for a certificate of origin.
Article 5.06 Invoicing by a third-country operator
Where the traded good is invoiced by a third-country operator, regardless of whether

it is a Party or a non-Party, the producer or exporter of the country of origin is required to
state in the respective certificate of origin, in the section headed ‘Comments’, that the
goods covered by the declaration will be invoiced from that third country and give the name
and address of the operator that will invoice the operation at destination.
Article 5.07 Confidentiality
1. Each Party shall maintain, in accordance with its law, the confidentiality of the
confidential information collected pursuant to this Chapter and shall protect that information
from any disclosure.
2. The confidential information collected pursuant to this Chapter may only be disclosed
to the authorities responsible for the administration and enforcement of determinations of
origin, and of customs and revenue matters, in accordance with the law of each Party.
Article 5.08 Origin verifications
1. The importing Party may request information from the exporting Party for the
purpose of determining the origin of a good.
2. For purposes of determining whether a good imported into its territory from the
territory of another Party under preferential tariff treatment qualifies as an originating good,
the importing Party may, through its competent authority, conduct a verification by means
of:
(a) Written questionnaires and requests for information to exporters or producers in the
territory of the exporting Party;
(b) visits to the premises of an exporter or a producer in the territory of the exporting
Party to review the accounting records and documents referred to in Article 5.04(5) and
observe the facilities and materials or products used in the production of the good; or
(c) such other procedure as the Parties may agree.
3. An exporter or producer that receives a questionnaire pursuant to paragraph 2(a) is

required to complete and return it within 30 days from the date of receipt. During the
period, the exporter or producer may, on one occasion, apply in writing for an extension of
the period, which may not be for more than 30 days.
4. In the event that the exporter or producer fails to return the duly-completed
questionnaire within the period or extension, the importing Party may deny preferential tariff
treatment.
5. Prior to conducting a verification visit pursuant to paragraph (2)(b), the importing
Party shall, through its competent authority, deliver a written notification of its intention to
conduct the visit. The notification shall be sent to the exporter or producer whose premises
are to be visited, to the competent authority of the Party in whose territory the visit is to be
conducted and, if requested by the latter, to the embassy of that Party in the territory of
the importing Party. The competent authority of the importing Party shall obtain the written
consent of the exporter or producer whose premises are to be visited.
6. The notification referred to in paragraph 5 shall include:
(a) The identity of the competent authority issuing the notification;
(b) the name of the exporter or producer whose premises are to be visited;
(c) the date and place of the proposed verification visit;
(d) the object and scope of the proposed verification visit, including specific reference to
the good that is the subject of the verification;
(e) the identification and titles of the officials performing the verification visit; and
(f) the legal authority for the verification visit.
7. Where an exporter or a producer has not given its written consent to a proposed
verification visit within 30 days of receipt of notification pursuant to paragraph 5, the
importing Party may deny preferential tariff treatment to the good or goods that would have
been the subject of the visit.
8. Each Party shall provide that, where its exporter or producer receives notification
pursuant to paragraph 5, it may, within 15 days of receipt of the notification, apply on one
occasion to postpone the proposed verification visit for a period not exceeding 60 days from
the date of such receipt, or for such longer period as the Parties may agree. Notification of
the postponement of the visit shall be made to the competent authorities of the importing
Party and the exporting Party.
9. A Party shall not deny preferential tariff treatment to a good based solely on the
postponement of a verification visit pursuant to paragraph 8.
10. Each Party shall permit an exporter or a producer whose good or goods are the
subject of a verification visit to designate two observers to be present during the visit,
provided that the observers do not participate in a manner other than as observers. The
failure of the exporter or producer to designate observers shall not result in the
postponement of the visit.
11. Each Party shall, through its competent authority, conduct a verification of the
regional value content requirement, de minimis calculation, or any other provision in
Chapter 4 (Rules of Origin) in accordance with the Generally Accepted Accounting Principles
applied in the territory of the Party from which the good was exported.
12. The competent authority conducting a verification shall provide the exporter or
producer whose good or goods are the subject of the verification with a written
determination of whether the good qualifies as an originating good, including findings of fact
and the legal basis for the determination.
13. Where verifications by a Party indicate a pattern of conduct by an exporter or a
producer of false or unsupported representations that a good imported into its territory
qualifies as an originating good, the importing Party may withhold preferential tariff
treatment to identical goods exported or produced by such person until that person
establishes compliance with Chapter 4 (Rules of Origin).
14. Each Party shall provide that where its competent authority determines that a good
imported into its territory does not qualify as an originating good based on a tariff
classification or a value applied by the Party to one or more materials used in the production
of the good, which differs from the tariff classification or value applied to the materials by
the Party from whose territory the good was exported, the importing Party’s determination
shall not become effective until it notifies in writing both the importer of the good and the
person that completed and signed the certificate of origin for the good of its determination.
15. A Party shall not apply a determination made under paragraph 14 to an importation
made before the effective date of the determination where:
(a) The competent authority of the Party from whose territory the good was exported
has issued an advance ruling under Article 5.09 or any other ruling on the tariff classification
or on the value of such materials, on which a person is entitled to rely; and
(b) such rulings were given prior to notification of the verification of origin.
Article 5.09 Advance rulings
1. Each Party shall, through its competent authority, provide for the expeditious
issuance of written advance rulings, prior to the importation of a good into its territory. The
advance rulings shall be issued by the competent authority of the territory of the importing
Party to an importer in its territory or an exporter or a producer in the territory of another
Party, on the basis of the facts and circumstances presented by them, concerning:
(a) Whether a good qualifies as an originating good under Chapter 4 (Rules of

Origin);
(b) whether non-originating materials used in the production of a good undergo a

change in tariff classification set out in Annex 4.03 (Specific Rules of Origin);
(c) whether a good satisfies a regional value content requirement established in

Chapter 4 (Rules of Origin);
(d) whether the method applied by an exporter or a producer in the territory of

another Party, in accordance with the principles of the Customs Valuation Agreement, for
calculating the value of the good or of the materials used in the production of the good for
which an advance ruling is requested is suitable for determining whether the good complies
with the regional value content under Chapter 4 (Rules of Origin);
(e) whether a good that re-enters its territory after the good has been exported
from its territory to the territory of another Party for repair or alteration qualifies for duty-
free treatment in accordance with Article 3.7 (Goods Re-Entered after Repair or Alteration);
and
(f) such other matters as the Parties may agree.

Each Party shall adopt or maintain procedures for the issuance of advance rulings, including:
(a) The information reasonably required to process an application;
(b) the ability of its competent authority, at any time during the course of an
evaluation of an application, to request supplemental information from the person requesting
the ruling;
(c) the obligation of its competent authority to issue an advance ruling, after it
has obtained all necessary information from the person requesting an advance ruling; and
(d) the obligation of its competent authority to provide a full explanation of the
reasons for the advance ruling.
3. Each Party shall apply an advance ruling to importations into its territory beginning
on the date of its issuance or such later date as may be specified in the ruling, unless the
advance ruling is modified or revoked under paragraph 5.
4. Each Party shall provide to any person requesting an advance ruling the same
treatment, including the same interpretation and application of provisions of Article 3.07
(Goods Re-Entered after Repair or Alteration) and Chapter 4 (Rules of Origin) regarding a
determination of origin, as it provided to any other person to whom it issued an advance
ruling, provided that the facts and circumstances are identical in all material respects.
5. An advanced ruling may be modified or revoked in the following cases:
(a) If the ruling is based on an error
(i) Of fact;
(ii) in the tariff classification of a good or a material that is the subject of the ruling;
(iii) in the application of a regional value content requirement established in Chapter 4

(Rules of Origin); or
(iv) in the application of the rules for determining whether a good that re-enters its
territory after the good has been exported from its territory to the territory of another Party
for repair or alteration qualifies for duty-free treatment under Article 3.07 (Goods Re-
Entered after Repair or Alteration);
(b) if the ruling is not in accordance with an interpretation agreed upon by the Parties
regarding Chapter 3 (National Treatment and Market Access for Goods) or Chapter 4 (Rules
of Origin);
(c) if there is a change in the material facts or circumstances on which the ruling is
based;
(d) to conform with a modification of this Chapter, Chapter 3 (National Treatment and
Market Access for Goods), Chapter 4 (Rules of Origin) or the Uniform Regulations; or
(e) to conform with an administrative or judicial decision or a change in the domestic law
of the Party that issued the advance ruling.
6. Each Party shall provide that any modification or revocation of an advance ruling shall
be effective on the date on which it is issued, or on such 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.
7. Notwithstanding paragraph 6, the Party issuing the advance ruling shall postpone the
entry into force of the modification or revocation for a period not to exceed 90 days, when
the person to whom the advance ruling was issued acted in good faith to that person’s
detriment.
8. Each Party shall provide that where its competent authority examines the regional
value content of a good for which it has issued an advance ruling, it shall evaluate whether:
(a) The exporter or producer has complied with the terms and conditions of the advance
ruling;
(b) the exporter’s or producer’s operations are consistent with the material facts and
circumstances on which the advance ruling is based; and
(c) the data and computations used in applying the basis or method for calculating value
or allocating cost were correct in all material respects.
9. Each Party shall provide that where its competent authority determines that any
requirement in paragraph 8 has not been satisfied, the competent authority may modify or
revoke the advance ruling as the circumstances may warrant.
10. Each Party shall provide that where its competent authority determines that an
advance ruling was based on incorrect information, the person to whom it was issued shall
not be subject to penalties provided the person demonstrates that it used reasonable care
and acted in good faith in presenting the facts and circumstances on which the ruling was
based.
11. Each Party shall provide that where an advance ruling is issued to a person that has
misrepresented or omitted material facts or circumstances on which the ruling is based or
has failed to act in accordance with the terms and conditions of the ruling, the competent
authority that issued the ruling may apply such measures as the circumstances may warrant,
under its domestic law.
12. The Parties shall provide that the person to whom an advance ruling has been issued
shall only use it for as long as the facts or circumstances on which the ruling is based
continue. Should they no longer apply, the person to whom the advance ruling was issued
may present information to enable the administration that issued the ruling to proceed under
paragraph 5.
13. No good subject to a verification of origin or to a review or appeal body in the

territory of any of the Parties shall be the subject of an advance ruling.
Article 5.10 Review and appeal

1. Each Party shall grant to the exporters or producers of another Party the same rights
of review and appeal of determinations of origin and advance rulings as it provides to its
importers, provided that:
(a) They complete and sign a certificate or declaration of origin for a good that has been
the subject of a determination of origin pursuant to Article 5.08(12); or
(b) they have received an advance ruling pursuant to Article 5.09.
2. The rights referred to in paragraph 1 shall include access to at least one level of
administrative review independent of the official or office responsible for the determination
or advance ruling under review; and access to a judicial review of the determination or
decision taken at the final level of administrative review, in accordance with the law of each
Party.
Article 5.11 Penalties
1. Each Party shall establish or maintain criminal, civil or administrative penalties for
violations of its laws and regulations relating to this Chapter.
2. Nothing in Article 5.03(1)(d), 5.03(2), 5.04(2) 5.08(4), 5.08(7) or 5.08(9) shall be

construed to prevent a Party from applying such measures as the circumstances may
warrant, under its law.
Article 5.12 Uniform regulations
1. The Parties shall establish and implement, under their respective laws and regulations,
on the date on which this Agreement enters into force and at any subsequent time, Uniform
Regulations regarding the interpretation, application and administration of this Chapter,
Chapter 3 (National Treatment and Market Access for Goods), Chapter 4 (Rules of Origin)
and other matters as may be agreed by the Parties.
2. The Parties undertake to complete the negotiation of the Uniform Rules no later than
60 days after this Agreement is signed.
3. Once the Uniform Regulations come into effect, each Party shall implement any
modification or addition thereto no later than 180 days after the Parties agree on such
modification or addition, or such other period as the Parties may agree.
Article 5.13 Cooperation
1. To the extent possible, each Party shall notify another Party of the following
measures, rulings and determinations, including those that are prospective in application:
(a) A determination of origin issued as the result of an origin verification

conducted pursuant to Article 5.08, after the avenues for review and appeal referred to in
Article 5.10 have been exhausted;
(b) a determination of origin that the Party considers to be contrary to a ruling

issued by the competent authority of another Party with respect to the tariff classification
or value of a good or of materials used in the production of a good;
(c) a measure establishing or significantly modifying an administrative policy that could

affect future determinations of origin; and
(d) an advance ruling or a modification thereof, pursuant to Article 5.09.
2. The Parties shall cooperate:
In the enforcement of their respective customs-related laws or regulations implementing this

Agreement, and under any customs mutual assistance agreement or other customs-related
agreement to which they are party;
for purposes of facilitating the flow of trade among them, in such customs-related matters
as the collection and exchange of statistics on the importation and exportation of goods, the
harmonization of documentation used in trade, the standardization of data elements, the
acceptance of an international data syntax and the exchange of information;
(c) in the exchange of customs regulations;
(d) in the verification of origin of a good, to which end the competent authority of the
importing Party may request the competent authority of another Party to carry out
determined investigations for that purpose in its territory and to issue the respective report
to the competent authority of the importing Party;
(e) in seeking mechanisms for the detection and prevention of unlawful transhipments of
goods from a Party or a non-Party; and
(f) in jointly organizing training programmes on customs matters, which include training
for officials and users who participate directly in customs procedures.
CHAPTER 6. EMERGENCY ACTION
Agreement on Safeguards means the Agreement on Safeguards that is part of the

WTO Agreement;
causal relationship means "causal relationship" as defined in the Agreement on

Safeguards;
critical circumstances means circumstances where delay in taking an emergency

action would cause injury that would be difficult to repair;
domestic industry means the producers as a whole of the like or directly competitive
good operating in the territory of a Party or those whose joint production of the like or
directly competitive good constitutes a significant percentage of total domestic production
of that good;
emergency action means any measure applied pursuant to this Chapter. It does not
include any emergency action pursuant to a procedure begun before this Agreement enters
into force;
investigating authority means "investigating authority" as defined in Annex 6.01;

serious injury means "serious injury" as defined in the Agreement on Safeguards;
threat of serious injury means "threat of serious injury" as defined in the Agreement
on Safeguards; and
transition period means the period during which a Party may adopt and maintain
emergency actions, which shall include for each good, the Tariff Elimination Programme to
which it is subject, plus an additional period of two years after the end of that programme.
Article 6.02 Bilateral emergency actions
1. For the application of bilateral emergency actions, an investigating authority shall

conform to the provisions of this Chapter and, supplementarily, to the provisions of
Article XIX of the GATT of 1994, the Agreement on Safeguards and its domestic law.
2. Subject to paragraphs 3 through 5, and during the transition period, if a good

originating in the territory of a Party, as a result of the reduction or elimination of a duty
provided for in this Agreement, is being imported into the territory of another Party in such
increased quantities, in relation to domestic production, and under such conditions that the
imports of the good from that Party alone constitute a substantial cause of serious injury, or
threat thereof, to a domestic industry producing a like or directly competitive good, the
Party into whose territory the good is being imported may, to the minimum extent necessary
to remedy or prevent the serious injury or threat thereof:
(a) Suspend the further reduction of any rate of duty provided for under this
Agreement on the good; or
(b) increase the rate of duty on the good to a level not to exceed the lesser of:
(i) The most-favoured-nation applied rate of duty in effect at the time the action is
taken; and
the most-favoured-nation applied rate of duty in effect on the day immediately preceding
the date of entry into force of this Agreement.
3. The following conditions and limitations shall apply to a proceeding that may result in
emergency action under paragraph 2:
(a) A Party shall, without delay, deliver to another Party written notice of the
institution of a proceeding that could result in emergency action against a good originating
in the territory of the other Party;
(b) any such action shall be initiated no later than one year after the date of institution
of the proceeding;
(c) no action may be maintained:
(i) For a period exceeding three years, extendable for one additional consecutive year in
accordance with the procedure established in Article 6.04(21); or
(ii) beyond the expiration of the transition period, except with the consent of the Party
against whose good the action is taken;
(d) the Parties may apply and extend the application of an emergency action to the same
good no more than twice during the transition period;
(e) an emergency action may be applied a second time provided a minimum period
equivalent to one half of the period during which the emergency action was applied for the
first time has elapsed;
(f) the period during which a provisional emergency action has been applied shall be
computed for the purpose of determining the duration of the final emergency action
established in subparagraph (c);
(g) provisional actions that do not become final are excluded from the limitation
established in (d);
(h) during an extension of an emergency action, the duty shall be gradually reduced to
the level that applies under the Tariff Elimination Programme; and
(i) upon termination of the emergency action, the duty shall be the duty that applies
under the Tariff Elimination Programme.
4. A Party may apply an emergency action after the expiration of the transition period
to deal with cases of serious injury, or threat thereof, to a domestic industry arising from
the operation of this Agreement only with the consent of the other Party.
5. The Party taking an action under this Article shall provide to another Party mutually
agreed trade liberalizing compensation in the form of concessions having substantially
equivalent trade effects or equivalent to the value of the additional duties expected to result
from the action. If the Parties are unable to agree on compensation, the Party against whose
good the action is taken may take tariff action having trade effects substantially equivalent
to the action taken under this Article. The Party taking the tariff action shall apply the action
only for the minimum period necessary to achieve the substantially equivalent effects.
Article 6.03 Global emergency actions
1. Each Party retains its rights and obligations under Article XIX of the GATT 1994 and
the Agreement on Safeguards except those regarding compensation or retaliation and
exclusion from an emergency action to the extent that such rights or obligations are
inconsistent with this Article.
2. Any Party taking an emergency action under paragraph 1 shall exclude imports of a
good from another Party from the action unless:
(a) Imports from the other Party account for a substantial share of total imports; and
(b) imports from the other Party contribute importantly to the serious injury, or threat
thereof, caused by total imports.
3. In determining whether:
(a) Imports from another Party account for a substantial share of total imports, those
imports normally shall not be considered substantial if that Party is not among the top five
suppliers of the good subject to the proceeding, measured in terms of import share during
the most recent three-year period; and
(b) imports from another Party contribute importantly to the serious injury, or threat
thereof, the competent investigating authority shall consider such factors as the change in
the import share of the other Party, and the level and change in the level of imports of the
other Party. In this regard, imports from a Party normally shall not be deemed to contribute
importantly to serious injury, or the threat thereof, if the growth rate of imports from a
Party during the period in which the injurious surge in imports occurred is appreciably lower
than the growth rate of total imports from all sources over the same period.
4. A Party shall, without delay, deliver written notice to another Party of the institution
of a proceeding that may result in emergency action under paragraph 1.
5. No Party may impose restrictions on a good in an action under paragraph 1 without

delivery of prior written notice to the Commission, and without adequate opportunity for
consultation with another Party, as far in advance of taking the action as practicable.
6. Where a Party determines to take an action pursuant to this Article to originating

goods of another Party, the action it applies to the originating goods of the other Party shall
consist, solely and exclusively, of tariff measures.
7. The Party taking an action pursuant to this Article shall provide to the other Party
mutually agreed trade liberalizing compensation in the form of concessions having
substantially equivalent trade effects or equivalent to the value of the additional duties
expected to result from the action.
8. If the Parties are unable to agree on compensation, the Party against whose good the
action is taken may take action having trade effects substantially equivalent to the action
taken under paragraph 1.
Article 6.04 Administration of emergency action proceedings
1. Each Party shall ensure the consistent and impartial administration of its laws,
regulations, rulings and determinations governing all emergency action proceedings.
2. Each Party shall entrust determinations of serious injury, or threat thereof, in

emergency action proceedings to an investigating authority, subject to review by judicial or
administrative tribunals, to the extent provided by domestic law. Negative injury
determinations shall not be subject to modification, on its own motion, by the investigating
authority. The investigating authority empowered under domestic law to conduct such
proceedings shall be provided with all the resources necessary to enable it to fulfil its
mandate.
3. Each Party shall adopt or maintain equitable, timely, transparent and effective
procedures for emergency action proceedings, in accordance with the requirements set out
in this Article.
Institution of a proceeding
4 The investigating authority may institute a proceeding on its own motion or under a
petition presented by entities empowered to take action under its domestic law. The entity
filing the petition shall demonstrate that it is representative of the domestic industry
producing a good like or directly competitive with the imported good. For that purpose, a
substantial share may not be less than 25 per cent.
5. Except as otherwise provided in this Article, the time periods governing such
procedures shall be those established in the domestic law of each Party.
Contents of a petition
6. An entity representative of a domestic industry that files a petition to initiate an

investigation shall provide the following information to the extent that such information is
publicly available from governmental or other sources, or best estimates and the basis
therefor if such information is not available:
(a) Product description - the name and description of the imported good concerned, the
tariff subheading under which that good is classified, its current tariff treatment and the
name and description of the like or directly competitive domestic good concerned;
(b) representativeness:
(i) The names and addresses of the entities filing the petition and the locations of the
establishments in which they produce the domestic good;
(ii) the percentage of domestic production of the like or directly competitive good that
such entities account for and the basis for claiming that they are representative of an
industry; and
(iii) the names and locations of all other domestic establishments in which the like or
directly competitive good is produced;
(c) import data - import data for each of the three most recent full years immediately
prior to the initiation of a procedure to apply an emergency action that form the basis of the
claim that the good concerned is being imported in increased quantities, either in absolute
terms or relative to domestic production as appropriate;
(d) domestic production data - data on total domestic production of the like or directly
competitive good for each of the three most recent full years immediately prior to the
initiation of a procedure to apply an emergency action;
(e) data showing injury or threat thereof - quantitative and objective data indicating the
nature and extent of injury or threat to the concerned industry, such as data showing
changes in the level of sales, prices, production, productivity, capacity utilization, market
share, profits and losses, and employment;
(f) cause of injury - an enumeration and description of the alleged causes of the injury,
or threat thereof, and a summary of the basis for the assertion that increased imports of the
good are causing or threatening to cause serious injury, supported by pertinent data; and
(g) criteria for inclusion - quantitative and objective data indicating the share of imports
accounted for by imports from the territory of another Party and the petitioner’s views on
the extent to which such imports are contributing importantly to the serious injury, or threat
thereof, caused by imports of that good.
7. Petitions shall promptly be made available for public inspection after filing.
Consultations
8. As soon as possible after a petition is presented meeting the requirements of

paragraph 6 and, in any event, prior to the initiation of an investigation, the Party that
intends to initiate it shall notify the other Party and invite it to hold consultations on the
situation.
9. During the entire investigation period, the Party whose goods are under investigation
shall be given adequate opportunity to continue the consultations.
10. At the consultations, the Parties may discuss, among other matters, the investigation
proceeding, elimination of the action, the matters referred to in Article 6.02(5) and, in
general, exchange opinions on the action.
11. Notwithstanding the obligation to provide adequate opportunity for consultations,

the provisions on consultations in paragraphs 8, 9 and 10 are not intended to impede the
authorities of any Party from promptly initiating an investigation or formulating positive or
negative preliminary or final determinations or taking action in accordance with the
provisions of this Agreement.
12. The Party that is performing an investigation shall give, when requested, the Party
whose goods are under investigation access to the public file, including the non-confidential
summary of the confidential information used to initiate the investigation or during its
course.
Notice requirement
13. On instituting an emergency action proceeding, the investigating authority shall

publish notice of the institution of the proceeding in the official journal or a national
newspaper within 30 days after presentation of the petition. The other Party shall be
notified of that publication without delay, in writing. The notice shall identify the petitioner,
the imported good that is the subject of the proceeding and its tariff subheading, the nature
and timing of the determination to be made, the time and place of the public hearing, dates
of deadlines for filing briefs, statements and other documents, the place at which the
petition and any other documents filed in the course of the proceeding may be inspected,
and the name, address and telephone number of the office to be contacted for more
information.
14. With respect to an emergency action proceeding instituted on the basis of a petition
filed by an entity asserting that it is representative of the domestic industry, the
investigating authority shall not publish the notice required by paragraph 13 without first
assessing carefully that the petition meets the requirements of paragraph 6.
Public hearing
15. In the course of each proceeding, the investigating authority shall:
(a) Notwithstanding the Party’s law, hold a public hearing, after providing reasonable
notice, to allow importers, exporters, consumers associations and other interested parties to
appear in person or by counsel to present evidence and to be heard on the questions of
serious injury, or threat thereof, and the appropriate remedy; and
(b) provide an opportunity to all interested parties to appear at the hearing to cross-
question interested parties making presentations at that hearing.
Confidential information
16. For the purposes of Article 6.02, the investigating authority shall adopt or maintain
procedures for the treatment of confidential information, protected under domestic law, that
is provided in the course of a proceeding, including a requirement that interested parties
providing such information furnish non-confidential written summaries thereof, or where the
interested parties indicate that the information cannot be summarized, the reasons why a
summary cannot be provided. The authorities may disregard that information, unless it is
convincingly demonstrated by appropriate sources that the information is correct.
17. The investigating authority shall not disclose any confidential information provided
pursuant to any commitment regarding confidentiality it has made during the proceeding.
Evidence of injury or threat thereof
18. In conducting its proceeding the investigating authority shall gather, to the best of
its ability, all relevant information appropriate to the determination it must make. It shall
evaluate all relevant factors of an objective and quantifiable nature having a bearing on the
situation of that industry, including the rate and amount of the increase in imports of the
good concerned, the share of the domestic market taken by increased imports, and changes
in the level of sales, production, productivity, capacity utilization, profits and losses, and
employment. In making its determination, the investigating authority may also consider
other economic factors, such as changes in prices and inventories, and the ability of firms in
the industry to generate capital.
Deliberation and report
19. Except in critical circumstances and in global actions involving perishable agricultural
goods, the investigating authority, before making an affirmative determination in an
emergency action proceeding, shall allow sufficient time to gather and consider the relevant
information, hold a public hearing and provide an opportunity for all interested parties to
prepare and submit their views.
20. The final determination shall be promptly published in the official journal or a national
newspaper, setting out the findings and reasoned conclusions on all pertinent issues of law
and fact. The determination shall describe the imported good and its tariff item number, the
standard applied and the finding made. The statement of reasons shall set out the basis for
the determination, including a description of:
(a) The domestic industry seriously injured or threatened with serious injury;
(b) information supporting a finding that imports are increasing, the domestic industry is
seriously injured or threatened with serious injury, and increasing imports are causing or
threatening serious injury; and
(c) if provided for by domestic law, any finding or recommendation regarding the
appropriate remedy and the basis therefor.
Extension
21. Where the importing Party determines that the grounds that gave rise to the bilateral
emergency action persist, it shall notify the competent authority of the other Party of its
intention to extend the action, at least 90 days in advance of its expiry, and shall provide
evidence that the reasons for its adoption persist, in order to initiate the respective
consultations, which shall be held as provided in this Article. Notifications of extensions and
compensation shall be made in the terms established in this Article, prior to the expiry of the
measures adopted.
Article 6.05 Dispute settlement in emergency action matters
No Party may request the establishment of an arbitral panel under Article 19.08
(Request for an Arbitral Panel) regarding any emergency action that has simply been
proposed.
ANNEX 6.01
INVESTIGATING AUTHORITY
For the purposes of this Chapter, the investigating authority shall be:
(a) For Chile, the National Investigating Committee on Price Distortions in Imported
Goods ("Comisión Nacional Encargada de Investigar la Existencia de Distorsiones en el Precio
de las Mercaderías Importadas") or its successor;
(b) for Costa Rica, the authority determined in its domestic law;
(c) for El Salvador, the technical unit responsible for investigating situations that may
warrant emergency action, reporting to the Ministry of Economic Affairs ("Ministerio de
Economía") or its successor;
(d) for Guatemala, the technical unit responsible for investigating situations that may
warrant emergency action, reporting to the Ministry of Economic Affairs ("Ministerio de
Economía") or its successor;
(e) for Honduras, the technical unit responsible for investigating situations that may
warrant emergency action, reporting to the Department of Industry and Trade ("Secretaría
de Industria y Comercio") or its successor; and
(f) for Nicaragua, the technical unit responsible for investigating situations that may
warrant emergency action, reporting to the Ministry of Development Industry and Trade
("Ministerio de Fomento, Industria y Comercio") or its successor.
CHAPTER 7. UNFAIR TRADING PRACTICES
Article 7.01 Scope and coverage
1. The Parties confirm their rights and obligations as established in the Agreement on
Subsidies and Countervailing Measures and in the Agreement on Implementation of Article VI
of the General Agreement on Tariffs and Trade of 1994, which are part of the WTO
Agreement.
2. Each Party may initiate an investigation and apply countervailing or anti-dumping
duties, in accordance with the Agreements referred to in paragraph 1 and its domestic law.
Article 7.02 Future work programme
1. The Parties share the objective of promoting significant reforms in this field to
prevent measures of this kind from becoming concealed barriers to trade. The Parties shall
cooperate in the effort to achieve such reforms under the frame of the World Trade
Organization and the Free Trade Area of the Americas.
2. Two years after this Agreement has come into force for all the Parties, they shall
establish a work programme to examine the possibility of introducing reforms, in the sense
of paragraph 1, in their mutual trade.
PART THREE. TECHNICAL BARRIERS TO TRADE
CHAPTER 8. SANITARY AND PHYTOSANITARY MEASURES
1. For the purposes of this Chapter, the Parties shall use the definitions and terms
established:
In the Agreement on the Application of Sanitary and Phytosanitary Measures, which is part of
the WTO Agreement (SPS Agreement);
by the International Office of Epizootics (OIE);
in the International Convention on Phytosanitary Protection (ICPP); and
by the Codex Alimentarius Commission, hereinafter the "Codex".
2. The competent authorities shall be the authorities with legal responsibility for
ensuring compliance with the sanitary and phytosanitary requirements established in this
Chapter.
Article 8.02 General provisions
1. Based on the SPS Agreement, the Parties establish a framework of rules and
disciplines that guide the adoption of and compliance with sanitary and phytosanitary
measures, and therefore the provisions of this Chapter refer to the principles, rules and
procedures relating to the sanitary and phytosanitary measures which regulate or which may,
directly or indirectly, affect trade among the Parties.
2. Through mutual cooperation, the Parties shall facilitate trade that presents no
sanitary or phytosanitary risks and undertake to prevent the introduction or spread of pests
and diseases and to improve plant and animal health and food safety.
Article 8.03 Rights of the parties
In accordance with the SPS Agreement, the Parties may:
(a) Establish, adopt, maintain or apply any sanitary or phytosanitary measure in their
territory only to the extent necessary to protect human (food safety) and animal life and
health, or to preserve plant health, even measures that are stricter than an international
standard, guideline or recommendation, providing there is scientific justification for doing so;
(b) apply their sanitary and phytosanitary measures only to the extent necessary to
achieve an appropriate level of protection, taking into account technical and economic
feasibility; and
(c) verify that plants, animals and their products and byproducts for export are subject
to strict sanitary and phytosanitary monitoring that ensures compliance with the sanitary
and phytosanitary requirements of the importing Party.
Article 8.04 Obligations of the parties
1. Sanitary and phytosanitary measures shall not constitute a disguised restriction on

trade or create unnecessary obstacles to trade among the Parties.
2. Sanitary and phytosanitary measures shall be based on scientific principles, be
maintained only where there are sufficient grounds and be based on an appropriate risk
assessment, taking technical and economic feasibility into consideration.
3. Sanitary and phytosanitary measures shall be based on international measures,

standards, guidelines or recommendations, except where it is scientifically demonstrated
that such measures, standards, guidelines or recommendations are not an effective or
adequate means of protecting human (food safety) and animal life and health, or to preserve
plant health in the territory of a Party.
4. Where identical or similar conditions exist, a sanitary or phytosanitary measure shall

not discriminate arbitrarily or unjustifiably between its goods and like goods of another Party
or between the goods of another Party and like goods of a non-Party.
5. The Parties shall provide the necessary facilities to verify control, inspection and
approval procedures, the application of measures and sanitary and phytosanitary
programmes.
Article 8.05 International standards and harmonization
To expeditiously apply sanitary and phytosanitary measures in the territory of the

Parties, thereby facilitating trade flows, procedures for control, inspection and approval of
sanitary and phytosanitary measures shall be based on the following principles:
(a) Each Party shall use international standards, guidelines or recommendations as the
basis for its sanitary and phytosanitary measures, in order to harmonize them or make them
compatible with those of another Party;
(b) notwithstanding subparagraph (a), the Parties may adopt, apply, establish or maintain
a sanitary or phytosanitary measure that offers a level of protection different from that
which would be achieved by measures based on an international standard, guideline or
recommendation, or which is stricter, if there is scientific justification;
(c) to achieve closer harmonization, the Parties shall follow the guidelines of the
competent international organizations – the ICPP for plant health, the OIE for animal health,
and the standards of the Codex with respect to food safety and tolerance limits;
(d) the Parties shall also take into consideration the standards and guidelines of other
international organizations of which they are members; and
(e) the Parties shall establish harmonized sanitary and phytosanitary systems for
sampling, diagnosis, inspection and certification of animals, plants, their products and
byproducts and food safety.
Article 8.06 Equivalence
To more expeditiously apply sanitary and phytosanitary measures in the territory of

the Parties, thereby facilitating trade flows, control and inspection procedures shall be
applied in accordance with the following principles:
(a) Without reducing the appropriate level of protection of human (food safety) and
animal life and health or of preservation of plant health in their territory, the Parties shall
accept to the fullest extent possible, their sanitary and phytosanitary measures as
equivalent;
(b) each Party shall accept the sanitary and phytosanitary measures of another Party as
equivalent, even if they differ from its own, providing the other Party demonstrates through
scientific information and risk assessment methods agreed to by them, that the measures
achieve an adequate level of protection; and
(c) to establish equivalencies between sanitary and phytosanitary measures, the Parties
shall facilitate access to their territory for the purposes of inspection, testing and other
pertinent measures.
Article 8.07 Assessment of risk and determination of the appropriate level of sanitary and
phytosanitary protection
On the basis of the guidelines issued by the competent international organizations:
(a) The Parties shall ensure that their sanitary and phytosanitary measures are
based on an adequate assessment, as appropriate to the circumstances, of the risks to
human (food safety) and animal life and health or to the preservation of plant health, taking
into account the guidelines and risk assessment techniques established by the competent
international organizations;
(b) in assessing the risk posed by a good and establishing the appropriate levels
of protection, the Parties shall take account of factors such as the following:
(i) The scientific and technical information available;
(ii) the existence of pests or diseases and the recognition of pest- and
disease-free areas and areas of low pest and disease prevalence;
(iii) the epidemiology of regulated pests and diseases;
(iv) an analysis of critical control points for sanitary (food safety) and
phytosanitary aspects;
(v) pertinent ecological and environmental conditions;
(vi) production processes and methods, and inspection, sampling and

testing methods;
(vii) the structure and organization of sanitary and phytosanitary services;
(viii) protection, surveillance, diagnosis and treatment procedures to ensure

product safety;
(ix) production or sales losses in the event of a pest or disease entering,

taking root or propagating;
(x) quarantine measures and applicable treatments to satisfy the

importing Party with respect to risk mitigation; and
(xi) pest or disease control or eradication costs in the territory of the
importing Party and the cost-effectiveness ratio of other possible risk reduction methods;
(c) in establishing their appropriate level of protection, the Parties shall take into
account the objective of minimizing the negative effects on trade and, with the purpose of
achieving consistency in protection levels, shall avoid arbitrary or unjustifiable distinctions
that could lead to discrimination or which constitute a disguised restriction on trade among
the Parties;
(d) where a Party performs a risk assessment and concludes that the scientific
information is insufficient, it may adopt a provisional sanitary or phytosanitary measure on
the basis of available information, including information from the competent international
organizations and the sanitary or phytosanitary measures applied by another Party. Once the
necessary information becomes available, the Party shall conclude the assessment and, when
warranted, shall proceed to modify the sanitary or phytosanitary measure;
(e) a risk analysis conducted by a Party shall be performed within the period of time
previously agreed to by the Parties. If the results of the analysis indicate refusal of the
importation, the scientific basis for the decision shall be notified in writing; and
(f) where a Party has reason to believe that a specific sanitary or phytosanitary measure
established or maintained by another Party restricts or may restrict its exports and that
measure is not based on pertinent international standards, guidelines or recommendations,
or such standards, guidelines or recommendations do not exist, it may ask for an explanation
of the reasons for those sanitary and phytosanitary measures and the Party that maintains
the measures shall provide an explanation within 30 days after the date on which the
competent authority receives the request.
Article 8.08 Recognition of pest- or disease-free areas and areas of low pest or disease
prevalence
1. On the basis of international recommendations, the Parties shall recognize pest- or

disease-free areas and areas of low pest or disease prevalence, giving consideration to
geographic location, ecosystems, epidemiological surveillance and the effectiveness of
sanitary or phytosanitary controls in such areas, among the main factors.
2. A Party that declares an area in its territory to be free from a given pest or disease
shall demonstrate that condition objectively to the importing Party and give it assurances
that the area shall be maintained as such, based on the protection measures adopted by the
heads of the sanitary or phytosanitary services.
3. A Party interested in obtaining recognition of an area that is free from a given pest
or disease shall make application to another Party and provide it with the corresponding
scientific and technical information.
4. A Party receiving the application for recognition shall decide on it within a period
agreed upon in advance with the other Party and may conduct verifications involving
inspections, testing and other procedures. In the event it refuses the application, it shall give
the technical reasons for its decision in writing.
5. The Parties shall agree on specific requirements whose compliance shall permit a
good produced in an area of low pest or disease prevalence to be imported, if the
appropriate level of protection is provided, in accordance with Annex A, paragraph 7, of the
SPS Agreement.
Article 8.09 Control, inspection and approval procedures
Pursuant to this Chapter, the Parties shall apply the provisions of Annex C of the SPS
Agreement, relating to control, inspection and approval procedures, including systems for
approving the use of additives and for establishing tolerances for contaminants in foods,
beverages or feedstuffs.
Article 8.10 Transparency
Each Party, when proposing the adoption or modification of a sanitary or

phytosanitary measure of general application on the central level, shall notify through its
competent authorities:
(a) The adoption and modification of such measures. It shall also facilitate information on
them, in accordance with Annex B of the SPS Agreement, making the appropriate
adaptations;
(b) changes or modifications in sanitary or phytosanitary measures with a significant

effect on trade among the Parties, no less than 60 days prior to the entry into force of the
new provision, to permit another Party to comment. In emergency situations the term shall
be waived, in accordance with Annex B of the SPS Agreement;
(c) changes in the field of animal health and the appearance of exotic diseases and
diseases of List A of the OIE, within 24 hours after detection of the problem;
(d) changes in the field of plant health, such as the appearance of quarantine pests or
the spread of pests under official control, within 72 hours after verification;
(e) findings of epidemiological importance and significant changes in relation to diseases

and pests not included in (c) or (d) that could affect trade among the Parties, within a
maximum of 10 days;
(f) outbreaks of diseases which it is scientifically proven are caused by the consumption
of raw or processed imported food products; and
(g) the reasons for which a good of an exporting Party is rejected.
2. Parties shall use the notification and information centres established in the SPS
Agreement as channels of communication. In the event of emergency actions, the Parties
agree to notify each other in writing immediately, briefly indicating the objective and
justification of the measure, and the nature of the problem.
3. As provided in Article 17.02 (Contact Points), each Party shall respond to reasonable
requests for information from another Party and provide the pertinent documentation, in
accordance with the principles established in Annex B, paragraph 3, of the SPS Agreement.
Article 8.11 Committee on Sanitary and Phytosanitary Measures
1. The Parties establish a Committee on Sanitary and Phytosanitary Measures, whose

composition is established in Annex 8.11.
2. The Committee shall examine matters relating to this Chapter and, without detriment
to Article 18.05(2) (Committees), it shall:
(a) Promote the facilities needed for the training and specialization of technical staff;
(b) promote cooperation and exchanges of technical staff, including cooperation in the
development, application and observance of sanitary and phytosanitary measures;
(c) promote active participation by the Parties in international organizations; and
(d) establish a roster of qualified specialists in the fields of food safety, plant health and
animal health for the purposes of Article 18.07 (Groups of Experts).
ANNEX 8.11
COMMITTEE ON SANITARY AND PHYTOSANITARY MEASURES
The Committee on Sanitary and Phytosanitary Measures established in

Article 8.11(1) shall be composed of:
(a) For Chile, the Directorate General of International Economic Relations of the Ministry
of Foreign Affairs ("Dirección General de Relaciones Económicas Internacionales del Ministerio
de Relaciones Exteriores") or its successor;
(b) for Costa Rica, the Ministry of Foreign Trade ("Ministerio de Comercio Exterior") and
the agencies responsible for applying sanitary and phytosanitary measures designated by the
Ministry or their successors;
(c) for El Salvador, the Ministry of Economic Affairs ("Ministerio de Economía"), the
Ministry of Agriculture and Livestock ("Ministerio de Agricultura y Ganadería") and the
Ministry of Public Health and Social Welfare ("Ministerio de Salud Pública y Asistencia Social")
or their successors;
(d) for Guatemala, the Ministry of Economic Affairs ("Ministerio de Economía"), the
Standards and Regulations Unit of the Ministry of Agriculture, Livestock and Food ("Unidad
de Normas y Regulaciones del Ministerio de Agricultura, Ganadería y Alimentación") and the
Unified Food and Medications Control Laboratory of the Ministry of Public Health and Social
Welfare ("Laboratorio Unificado de Control de Alimentos y Medicamentos del Ministerio de
Salud Pública y Asistencia Social") or their successors;
(e) for Honduras, the Department of Industry and Trade ("Secretaría de Industria y
Comercio"), the Department of Health ("Secretaría de Salud") and the Department of
Agriculture and Livestock ("Secretaría de Agricultura y Ganadería") or their successors; and
Fomento, Industria y Comercio"), the Ministry of Agriculture and Forests ("Ministerio
Agropecuario y Forestal") and the Ministry of Health ("Ministerio de Salud") or their
successors.
CHAPTER 9. STANDARDS-RELATED MEASURES, METROLOGY

AND APPROVAL PROCEDURES
approval procedure means any mandatory administrative procedure to obtain a

registration, permit, licence or any other authorization for a good or service to be produced,
marketed or used for a stated purpose or under stated conditions;
assessment of risk means evaluation of the potential injury to legitimate objectives

that could be caused by a good or service sold;
comparable situation means a situation that ensures the same level of safety or
protection to achieve a legitimate objective;
conformity assessment procedure means any procedure used, directly or indirectly,

to determine that a technical regulation or standard is fulfilled, including sampling, testing,
inspection, evaluation, verification, assurance of conformity, registration, accreditation and
approval, separately or in different combinations;
international standard means a standard or other guide or recommendation, adopted

by an international standardizing body and made available to the public;
international standardizing and metrology body means a standardizing body whose

membership is open to the relevant bodies of at least all the parties to the TBT Agreement,
including the International Organization for Standardization (ISO), the International
Electrotechnical Commission (IEC), the Codex Alimentarius Commission, the International
Organization of Legal Metrology (OIML), the International Commission on Radiation Units and
Measurements (ICRUM), or any other body that the Parties designate;
legitimate objective includes the imperatives of national security, the prevention of

practices which may mislead consumers, the protection of human health and safety, of
animal and plant life and health and of the environment;
make compatible means bring different standards-related measures of the same

scope approved by different standardizing bodies to a level such that they are either
identical, equivalent or have the effect of permitting goods or services to be used in place of
one another or fulfil the same purpose;
services means any of services set out in Annex 9.01 and others agreed upon by the
Parties in future negotiations;
standard means a document, approved by a recognized body, that provides, for

common and repeated use, rules, guidelines or characteristics for goods or related processes
and production methods, or for services or related operating methods, with which
compliance is not mandatory. It may also include or deal exclusively with terminology,
symbols, packaging, marking or labelling requirements as they apply to a good, service,
process or production method or a related operating method;
standards-related measure means a standard, technical regulation or conformity

assessment procedure;
TBT Agreement means the Agreement on Technical Barriers to Trade, which is part
of the WTO Agreement; and
technical regulation means a document which lays down goods’ characteristics or
their related processes and production methods, or services’ characteristics or their related
operating methods, including the applicable administrative provisions, with which compliance
is mandatory. It may also include or deal exclusively with terminology, symbols, packaging,
marking or labelling requirements as they apply to a good, service, related process or
production or operating method.
2. Except as otherwise defined in paragraph 1, the Parties shall use the terms contained
in ISO/IEC Guide 2, "General Terms and Their Definitions Concerning Standardization and
Related Activities".
Apart from the provisions of the TBT Agreement, the Parties shall apply the
provisions of this Chapter.
1. This Chapter applies to the standards-related measures, approval procedures and

metrology of the Parties and measures that may, directly or indirectly, affect trade in goods
or services among them.
2. This Chapter does not apply to sanitary and phytosanitary measures.
Article 9.04 Basic obligations and rights
Right to adopt standards-related measures
1. Each Party may prepare, adopt, apply and maintain:
(a) Standards-related measures, approval procedures and metrology-related measures as

established in this Chapter; and
(b) technical regulations and the conformity assessment procedures applicable to them,
to ensure the fulfilment of their legitimate objectives.
Unnecessary obstacles
2. No Party may prepare, adopt, maintain or apply any standards-related measure,

approval procedure or metrology-related measure with the purpose or effect of creating an
unnecessary obstacle to trade among the Parties.
Non-discriminatory treatment
3. Each Party shall, in respect of its standards-related measures, approval procedures

and metrology-related measures, accord to goods and service providers of another Party
national treatment and treatment no less favourable than that it accords to like goods and
the suppliers of like services of any other country.
Use of international standards

4. Each Party shall use, as a basis for preparing or applying its standards-related
measures, approval procedures and metrology-related measures, relevant international
standards or international standards whose adoption is imminent, except where such
standards would be an ineffective or inappropriate means to fulfil its legitimate objectives,
because of fundamental climatic, geographical, technological or infrastructural factors or for
scientifically proven reasons.
Article 9.05 Assessment of risk
1. A Party may, in pursuing its legitimate objectives, conduct an assessment of risk,

taking into account:
(a) Assessments of risk performed by international standardization organizations;
(b) available scientific evidence or technical information;
(c) related technology; or
(d) end uses of the goods or services.
2. Where a Party establishes a level of protection that it considers appropriate to

achieve its legitimate objectives and conducts an assessment of risk, it shall avoid arbitrary
or unjustifiable distinctions between similar goods or similar services, where the distinctions:
(a) Result in arbitrary or unjustifiable discrimination against goods or service providers of

another Party;
(b) constitute a disguised restriction on trade among the Parties; or
(c) discriminate between similar goods or similar services for the same use under the
same conditions that pose the same level of risk and provide similar benefits.
3. A Party shall provide another Party upon request with documentation on its risk-
assessment processes and the factors it takes into account in conducting the assessment
and in establishing the level of protection, in accordance with Article 9.04.
Article 9.06 Compatibility and equivalence
1. Without prejudice to the rights conferred under this Chapter, and taking into account
international standardization activities, the Parties shall, to the greatest extent practicable,
make compatible their respective standards-related measures without reducing the level of
safety or of protection of human, animal or plant life or health, the environment or
consumers.
2. Each Party shall treat a technical regulation adopted by another Party as equivalent
to its own where in cooperation with that other Party, the importing Party determines that
the technical regulations of the exporting Party adequately fulfil the importing Party’s
legitimate objectives.
3. The importing Party shall provide to the exporting Party, on request, its reasons in
writing for not treating a technical regulation as equivalent under paragraph 2.
Article 9.07 Conformity assessment

1. Each Party shall prepare, adopt and apply conformity assessment procedures so as to
grant access for similar goods and similar services originating in the territory of another
Party under conditions no less favourable than those accorded to suppliers of similar goods
or similar services of the Party or of a non-Party in a comparable situation.
2. With respect to its conformity assessment procedures, each Party shall ensure that:
(a) procedures are initiated and completed as expeditiously as possible, in non-

discriminatory order;
(b) the normal processing period for each such procedure is published or
communicated to an applicant on request;
(c) when receiving an application, the competent body or authority promptly

examines the completeness of the documentation and informs the applicant in a precise and
complete manner of all deficiencies; the competent body transmits as soon as possible the
results of the assessment in a precise and complete manner to the applicant so that
corrective action may be taken if necessary; even when the application has deficiencies, the
competent body proceeds as far as practicable with the conformity assessment if the
applicant so requests; and upon request, the applicant is informed of the stage of the
procedure, with any delay being explained;
(d) information requirements are limited to what is necessary to assess

conformity and determine fees;
(e) the confidentiality of information about a good or service originating in the

territory of another Party arising from or supplied in connection with such conformity
assessment procedures is respected in the same way as for a domestic good or service and
in such a manner that legitimate commercial interests are protected;
(f) any fees imposed for assessing the conformity of a good or service
originating in the territory of another Party are equitable in relation to any fees chargeable
for assessing the conformity of like goods or services of national origin, taking into account
communication, transportation and other costs arising from differences between the location
of facilities of the applicant and the conformity assessment body;
(g) the siting of facilities used in conformity assessment procedures and the
selection of samples are not such as to cause unnecessary inconvenience to applicants or
their agents;
(h) whenever specifications of a good or service are changed subsequent to the

determination of its conformity to the applicable technical regulations or standards, the
conformity assessment procedure for the modified good or service is limited to what is
necessary to determine whether adequate confidence exists that the good or service still
meets the technical regulations or standards concerned; and
(i) a procedure exists to review complaints concerning the operation of a

conformity assessment procedure and to take corrective action when a complaint is
justified.
3. To facilitate trade, a Party shall give sympathetic consideration to a request by
another Party to negotiate agreements for the mutual recognition of the results of their
respective conformity assessment procedures.
4. Each Party shall, as far as practicable, accept the results of conformity assessment
procedures in another Party, provided they offer satisfactory guarantees, equivalent to
those provided by the procedures carried out by the accepting Party in its territory or which
are carried out in its territory and whose results it accepts, that the pertinent good or
service conforms to the applicable technical regulation or standard adopted or maintained in
the territory of that Party.
5. Before accepting the results of a conformity assessment procedure, as provided in

paragraph 4, and with the aim of enhancing the sustained reliability of the results of the
conformity assessment of each Party, the Parties may consult on aspects such as the
technical capacity of conformity assessment bodies, including verified conformity with
relevant international standards through methods such as accreditation.
6. Recognizing that this should be to the mutual advantage of the Parties, each Party
shall accredit, approve or otherwise recognize the conformity assessment bodies in the
territory of another Party under conditions no less favourable than it accords to such bodies
in its territory.
7. For conformity assessment procedures, the Parties may use the capacity and
technical infrastructure of accredited bodies established in the territory of the Parties.
Article 9.08 Approval procedures
Each Party shall apply Article 9.07(1) and (2), except for Article 9.07(2)(g) and (h), to its
approval procedures, replacing the references to "conformity assessment procedures" with
"approval procedures".
Article 9.09 Metrological standards
Each Party shall, as far as practicable, ensure the traceability of its metrological
standards in accordance with the recommendations of the International Bureau of Weights
and Measures (BIPM) and the International Organization of Legal Metrology (OIML),
complying with the principles established in this Chapter.
Article 9.10 Notification
1. Where there is no pertinent international standard or the technical content of a

technical regulation or conformity assessment procedure applicable to a planned technical
regulation does not agree with the technical content of the pertinent international standards
and provided that the technical regulation could have a significant effect on trade among the
Parties, each Party shall notify the other Parties in writing of the proposed measure at least
60 days in advance of its adoption, to enable interested parties to submit comments and
consultations during that period and permit the notifying Party to take them into account.
2. Where a Party experiences or is threatened by an urgent problem relating to safety,

health, environmental protection or national security, it may omit the advance notification,
provided that on adoption of a measure it shall notify the other Parties.
3. The Parties shall make notifications under paragraphs 1 and 2 in accordance with the
formats established in the TBT Agreement.
4. Within 30 days after this Agreement comes into force, each Party shall inform the
other Parties of the body it has designated to make notifications under this Article.
Article 9.11 Inquiry points
Within 30 days after this Agreement comes into force, each Party shall notify the
other Parties of the entity it has designated as the inquiry point in its territory and its sphere
of responsibility, which shall be in charge of responding to all questions and reasonable
inquiries from the other Parties and interested persons and providing relevant, up-to-date
documents regarding any standards-related measure, approval procedure or metrology-
related measure adopted or proposed in its territory by governmental or non-governmental
bodies.
Article 9.12 Committee on Standardization, Metrology and Approval Procedures
1. The Parties establish a Committee on Standardization, Metrology and Approval

Procedures, whose composition is established in Annex 9.12.
2. The Committee shall examine matters related to this Chapter and, without detriment
to Article 18.05(2) (Committees), shall:
(a) Study and propose solutions to standards-related measures, approval procedures or

metrology-related measures that a Party considers to be a technical barrier to trade;
(b) facilitate the process by which the Parties make compatible their standards-related
and metrology-related measures, giving priority to labelling, packaging and packing;
(c) promote technical-cooperation among the Parties;
(d) assist in the risk assessments performed by the Parties;
(e) cooperate in developing and strengthening standards-related and metrology-related

measures in the Parties;
(f) facilitate the process by which the Parties establish mutual-recognition agreements;
and
(g) on the request of a Party, evaluate and recommend to the Commission for approval,
the inclusion of services sectors or subsectors in Annex 9.01. They shall be included through
a decision of the Commission.
Article 9.13 Technical cooperation
1. Each Party shall promote technical cooperation by its standardization and metrology
bodies, providing information or technical assistance, to the extent possible, and on
mutually-agreed terms, to assist in compliance with this Chapter and fortify standards- and
metrology-related activities, processes, systems and measures.
2. The Parties may make joint efforts to arrange for technical-cooperation from non-
Party countries.
ANNEX 9.01
SERVICES SECTORS OR SUBSECTORS
1. The Parties shall use the Central Product Classification (CPC) as established by the
United Nations Statistics Division, Statistical Papers, Series M, No. 77, Provisional Central
Product Classification, 1991, and updates to identify the sectors and subsectors of this
Annex.
2. The services sectors or subsectors subject to this Chapter are:
(a) Computer and related services (Division 84); and
(b) any other established in accordance with Article 9.12(2)(g).
ANNEX 9.12
COMMITTEE ON STANDARDIZATION, METROLOGY AND
APPROVAL PROCEDURES
The Committee established in Article 9.12(1) shall be composed of:
(a) For Chile, the Ministry of Economic Affairs through the Foreign Trade Department
("Ministerio de Economía, Departamento de Comercio Exterior") or its successor;
(b) for Costa Rica, the Ministry of Foreign Trade ("Ministerio de Comercio Exterior") or its
successor;
(c) for El Salvador, the Trade Policy Directorate of the Ministry of Economic Affairs
("Dirección de Política Comercial, Ministerio de Economía") or its successor;
(d) for Guatemala, the body designated by the Ministry of Economic Affairs ("Ministerio
de Economía") or its successor;
Comercio") or its successor; and
(f) for Nicaragua, the Directorate of Technology, Standardization and Metrology of the
Ministry of Development, Industry and Trade ("Dirección de Tecnología, Normalización y
Metrología, Ministerio de Fomento, Industria y Comercio") or its successor.
PART FOUR. INVESTMENT SERVICES AND RELATED MATTERS
CHAPTER 10. INVESTMENT
1. The agreements referred to in Annex 10.01 are incorporated into this Agreement
and form an integral part hereof.
2. In the event of any inconsistency between this Chapter and another Chapter of this
Agreement, this Chapter shall prevail to the extent of the inconsistency, except with respect
to Chapters 1 (Initial Provisions), 18 (Administration of the Agreement), 19 (Dispute
Settlement) and 21 (Final Provisions).
Article 10.02 Future work programme
1. Within two years after this Agreement comes into force, all the Parties shall study
the possibility of developing and expanding the coverage of the rules and disciplines
established in the agreements referred to in Annex 10.01. Development and expansion of
those agreements shall form an integral part of this Agreement.
2. Notwithstanding paragraph 1, Chile and a Central American country may agree to

develop and expand the coverage of the rules and disciplines established in the agreements
referred to in Annex 10.01. Development and expansion of those agreements shall form an
integral part of this Agreement.
ANNEX 10.01
SCOPE AND COVERAGE
The following agreements are incorporated into this Agreement:
(a) Agreement between the Republic of Chile and the Republic of Costa Rica on the
Promotion and Reciprocal Protection of Investments, signed on 11 July 1996;
(b) Agreement between the Republic of Chile and the Republic of El Salvador on the
Promotion and Reciprocal Protection of Investments, signed on 8 November 1996;
(c) Agreement between the Republic of Chile and the Republic of Guatemala on the
Promotion and Reciprocal Protection of Investments, signed on 8 November 1996;
(d) Agreement between the Republic of Chile and the Republic of Honduras on the
Promotion and Reciprocal Protection of Investments, signed on 11 November 1996; and
(e) Agreement between the Republic of Chile and the Republic of Nicaragua on the
Promotion and Reciprocal Protection of Investments, signed on 8 November 1996.
CHAPTER 11. CROSS-BORDER TRADE IN SERVICES

government services or functions means all cross-border services provided by a
public institution that are not provided under commercial conditions and do not compete
with one or more service providers;
cross-border service means the provision of a service:
(a) From the territory of a Party into the territory of another Party;
(b) in the territory of a Party to a consumer of another Party; or
(c) by a service provider through the presence of physical persons of a Party in the
territory of another Party;
but does not include the provision of a service in the territory of a Party by an
investment in that territory;
professional services means cross-border services, the provision of which requires

post-secondary technical or university education, or equivalent training or experience, and
for which the right to practice is granted, restricted or regulated by a Party, but does not
include services provided by trades-persons or vessel and aircraft crew members;
quantitative restriction means a non-discriminatory measure that imposes limitations

on:
(a) The number of service providers, whether in the form of a quota, a monopoly or an
economic needs test, or by any other quantitative means; or
(b) the operations of any service provider, whether in the form of a quota or an
economic needs test, or by any other quantitative means;
service provider of a Party means a person of another Party that seeks to provide or
provides a cross-border service; and
specialty air services means cross-border aerial mapping, aerial surveying, aerial
photography, forest fire management, fire fighting, aerial advertising, glider towing,
parachute jumping, aerial construction, heli-logging, aerial sightseeing, flight training, aerial
inspection and surveillance, and aerial spraying services.
1. This Chapter applies to measures adopted or maintained by a Party relating to cross-

border services provided by service providers of another Party, including measures
respecting:
(a) The production, distribution, marketing, sale and delivery of a cross-border service;
(b) the purchase or use of, or payment for, a cross-border service;
(c) the access to and use of distribution and transportation systems in connection with
the provision of a cross-border service;
(d) the presence in its territory of a cross-border service provider of another Party; and
(e) the provision of a bond or other form of financial security as a condition for the
provision of a cross-border service.
2. For the purposes of this Chapter, measures adopted or maintained by a Party include
measures adopted or maintained by a non-governmental body in the exercise of a regulatory,
administrative or other governmental authority delegated to it by that Party.
3. This Chapter does not apply to:
(a) Subsidies or grants provided by a Party or a State enterprise, including government-

supported loans, guarantees and insurance;
(b) air services, including domestic and international air transportation services, whether
scheduled or non-scheduled, and related services in support of air services, other than:
(i) Aircraft repair and maintenance services during which an aircraft is withdrawn from
service,
specialty air services; and
computerized reservation systems;
(c) government services or functions, such as law enforcement, correctional services,

income security or insurance, social security, social welfare, public education, public training,
health and child care;
(d) cross-border trade in financial services; or
(e) procurement by a Party or a State enterprise.
4. Notwithstanding paragraph 3(c), if a duly authorized service provider of a Party

provides services or carries out governmental functions, such as law enforcement,
correctional services, income security or insurance, social security, social welfare, public
education, public training, health, and child care in the territory of another Party, those
services shall be protected under this Chapter.
5. Nothing in this Chapter shall be construed to impose any obligation on a Party with
respect to a national of the other Party seeking access to its employment market, or
employed on a permanent basis in its territory, or to confer any right on that national with
respect to such access or employment.
Article 11.03 National treatment
1. Each Party shall accord to cross-border services and service providers of another
Party treatment no less favourable than that it accords to its own like services and like
service providers.
2. The Parties may meet the requirement of paragraph 1 by according to cross-border

services and service providers of another Party, formally identical or formally different
treatment to the treatment it accords to its own like services and like service providers.
3. Formally identical or formally different treatment shall be considered to be less
favourable if it modifies the conditions of competition in favour of cross-border services or
service providers of a Party compared to like services or like service providers of another
Party.
Article 11.04 Most-favoured-nation treatment
Each Party shall immediately and unconditionally accord to cross-border services and
service providers of another Party treatment no less favourable than it accords to like
services and like service providers of any other country.
Article 11.05 Standard of treatment
Each Party shall accord to cross-border services and service providers of another
Party the better of the treatment required by Articles 11.03 and 11.04.
Article 11.06 Local presence
No Party may require a service provider of another 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.
Article 11.07 Granting of permits, authorizations, licenses and certificates
For the purpose of ensuring that any measure that a Party adopts or maintains in
relation to the requirements and procedures for granting permits, authorizations, licenses
and certificates to nationals of another Party does not constitute an unnecessary barrier to
trade, each Party shall endeavour to ensure that such measures:
(a) Are based on objective and transparent criteria, such as the capacity and ability to
provide a cross-border service;
(b) are not more burdensome than necessary to ensure the quality of a cross-border
service; and
(c) do not constitute a disguised restriction on the provision of a cross-border service.
Article 11.08 Reservations
1. Articles 11.03, 11.04 and 11.06 do not apply to:
(a) Any existing non-conforming measure that is maintained by a Party at any level of
government, as set out in its Schedule to Annex I;
(b) the continuation or prompt renewal of any non-conforming measure referred to in

subparagraph (a); or
(c) an amendment to any non-conforming measure referred to in subparagraph (a) to

the extent that the amendment does not decrease the conformity of the measure, as it
existed immediately before the amendment, with Articles11.03, 11.04 and 11.06.
2. Articles 11.03, 11.04 and 11.06 do not apply to any measure that a Party adopts or
maintains with respect to sectors, subsectors or activities, as set out in its Schedule to
Annex II.
3. For the purposes of this Article and Article 11.09, existing means in effect on
18 August 1998, except between Chile and Honduras, where it means 30 June 1999.
Article 11.09 Non-discriminatory quantitative restrictions
1. Each Party shall set out in its Schedule to Annex III any non-discriminatory
quantitative restriction that it maintains.
2. Each Party shall notify the other Parties of any non-discriminatory quantitative
restriction that it adopts after the date of entry into force of this Agreement and shall set
out the restriction in the Schedule referred to in paragraph 1.
3. The Parties shall periodically, but in any event at least every two years, endeavour to
negotiate the liberalization or removal of:
(a) The quantitative restrictions maintained by a Party set out in the schedule
referred to in paragraph 1; and
(b) quantitative restrictions adopted by a Party after this Agreement comes into
force.
Article 11.10 Denial of benefits
Subject to prior notification and consultation in accordance with Articles 17.04

(Provision of Information) and 19.06 (Consultations), a Party may deny the benefits of this
Chapter to a service provider of another Party where the Party establishes that the service is
being provided by an enterprise that that has no substantial business activities in the
territory of the other Party and, in accordance with the law of that other Party, is owned or
controlled by persons of a non-Party.
Article 11.11 Future liberalization
Through future negotiations to be arranged by the Commission, the Parties shall seek
further liberalization in the different services sectors, with a view to eliminating the
remaining restrictions in the Schedules referred to in Article 11.08(1) and (2).
Article 11.12 Procedures
The Parties shall establish procedures for:
(a) A Party to notify another Party and include in its relevant Schedule:
(i) Amendments of measures referred to in Article 11.08(1) and (2), and
(ii) quantitative restrictions in accordance with Article 11.09;
(b) commitments to liberalize quantitative restrictions, licensing requirements and other

non-discriminatory measures; and
(c) consultations on reservations, quantitative restrictions or commitments with a view

to further liberalization.
Article 11.13 Professional services
Annex 11.13 on professional services sets out the rules to be followed by the Parties
to harmonize the requirements governing professional services through licensing to exercise
a profession.
Article 11.14 Committee on Investment and Cross-Border Services
1. The Parties establish a Committee on Investment and Cross-Border Services, whose

composition is established in Annex 11.14.
2. The Committee shall examine matters relating to this Chapter and to Chapter 10
(Investment).
ANNEX 11.13
PROFESSIONAL SERVICES
Recognition of Post-Secondary Diplomas
1. Where a Party recognizes, either unilaterally or by agreement with another country, a

post-secondary diploma obtained in the territory of another Party or of a non-Party:
(a) Nothing in Article 11.04 shall be construed to require that Party to accord such
recognition to post-secondary diplomas obtained in the territory of another Party; and
(b) a Party shall afford another Party an adequate opportunity to demonstrate that the
post-secondary diplomas obtained in the territory of that Party should also be recognized or
to conclude an agreement or arrangement of comparable effect.
Basis for Recognition of Post-Secondary Diplomas and Licensing of Professional Service

Providers
2. The Parties agree that the processes of mutual recognition of post-secondary

diplomas and licensing of professional service providers shall be intended to improve the
quality of professional services by establishing standards and criteria for such processes,
while simultaneously protecting consumers and safeguarding the public interest.
3. The Parties shall encourage the relevant bodies, including competent government
authorities and professional associations and colleges, where pertinent, to:
(a) Prepare such standards and criteria; and
(b) develop and present recommendations on the mutual recognition of professional

diplomas and licensing to exercise a profession.
4. The standards and criteria referred to in paragraph 3 may consider the law of each
Party and, by way of example, the following elements: education, examinations, experience,
conduct and ethics, professional development and re-certification, scope of practice, local
knowledge, supervision and consumer protection.
5. The Parties shall provide the detailed information necessary for the recognition of
post-secondary diplomas and licensing of professional service providers, including
information on academic courses, study guides and materials, payment of fees, dates of
examinations timetables, location and membership in professional societies or colleges. The
information includes legislation, administrative guidelines and centrally-applied general
measures and those prepared by governmental and non-governmental institutions.
ANNEX 11.14
COMMITTEE ON INVESTMENT AND CROSS-BORDER TRADE IN SERVICES
The Committee on Investment and Cross-Border Trade in Services established in

Article 11.14 shall be composed of:
(a) For Chile, the Directorate General of International Economic Relations of the Ministry
of Foreign Affairs ("Dirección General de Relaciones Económicas Internacionales, Ministerio de
Relaciones Exteriores") or its successor;
(b) for Costa Rica, the Ministry of Foreign Trade ("Ministerio de Comercio Exterior") or its
successor;
(c) for El Salvador, the Ministry of Economic Affairs ("Ministerio de Economía") or its
successor;
(d) for Guatemala, the Ministry of Economic Affairs ("Ministerio de Economía") or its
successor;
Comercio") or its successor; and
Fomento, Industria y Comercio") or its successor.
CHAPTER 12. AIR TRANSPORTATION
1. This Chapter applies to the measures that a Party adopts or maintains with respect
to air transportation services.
2. The Conventions signed or to be signed between Chile and a Central American

country, hereinafter the "Conventions", shall form an integral part of this Agreement,
including those referred to in Annex 12.01.
3. In the event of any inconsistency between this Agreement and the Conventions, this
Agreement shall prevail to the extent of the inconsistency.
Article 12.02 Consolidation
No modification made in accordance with the Conventions shall restrict rights existing
prior to such modification.
Article 12.03 Dispute settlement

1. Disputes regarding the interpretation or application of this Chapter or the
Conventions shall be settled in accordance with Chapter 19 (Dispute Settlement) of this
Agreement, with the modifications established in this Article.
2. Where one Party claims that a dispute has arisen under paragraph 1, Article 19.11
(Panel Selection) shall be applicable, except that:
(a) All members of the arbitral panel shall comply with the requisites established in (b)
and (c);
(b) the Parties shall establish by consensus, no later than 30 days after this Agreement
comes into force, a roster of up to 10 individuals, who are willing and able to serve as
panellists in air transportation services disputes; and
(c) the roster members shall:
(i) Have specialized knowledge of or practical experience in air transportation services;

and
(ii) comply with the requirements established in Article 19.10 (Qualifications of

Panellists).
3. Until such time as the roster referred to in paragraph 2(b) is established, each
disputing Party shall designate a panellist and the third shall be designed by the disputing
Parties by mutual agreement. Where an arbitral panel has not been established under this
paragraph within the term set out in Article 19.11 (Panel Selection), on the request of either
of the Parties, the President of the Council of the International Civil Aviation Organization
shall appoint the remaining panellists, following that organization’s procedures.
Article 12.04 Committee on Air Transportation
1. The Parties establish a Committee on Air Transportation, whose composition is

established in Annex 12.04.
2. The Committee shall examine matters relating to this Chapter.
ANNEX 12.01
SCOPE AND COVERAGE
1. The Convention on Air Transportation between the Republic of Chile and the Republic
of Costa Rica, signed in San Jose on 6 April 1999 or its successor is incorporated into and
made an integral part of this Agreement.
2. Chile and Costa Rica also agree to ratify and be bound by the provisions of the Act
signed by their aeronautical authorities on 1 July 1998 to the effect that it is necessary to
temporarily maintain limits on fifth freedom operations of Costa Rican airlines on the route
Lima – Santiago – Lima, considering that this segment is limited by the Peruvian Authority
for Chilean companies. The limitations shall be applied as follows:
(a) Up to a total of 10,000 passengers may be carried between 1 July and

31 December 1998, counting both directions;
(b) in 1999, the quota is an annual base of 18,000 passengers, counting both directions,
plus the percentage increase in total traffic on that market in 1998 over the previous year.
The final quota may not be less that 21,000, counting both directions;
(c) if at 1 January 2000, the Chilean Party has not requested a review meeting, the
limitation on the Lima – Santiago – Lima route shall be void. If the Chilean Party requests a
review of the quota by that date, it shall be for the purposes of an increase and not a
reduction;
(d) the meeting shall be held and concluded within the 30 calendar days after it is called.
If no meeting is held within that period on Costa Rica’s account, the 1999 quota shall
continue to be applied until the review process is concluded and if it is not held on Chile’s
account, the limitation shall be void; and
(e) if, the restrictions imposed by Peru on Chile are removed for any reason, the
restrictions established herein shall also be removed.
ANNEX 12.04
COMMITTEE ON AIR TRANSPORTATION
The Committee on Air Transportation established in Article 12.04 shall be composed

of:
(a) For Chile, the Civil Aeronautics Board ("Junta de Aeronáutica Civil") or its successor;
(b) for Costa Rica, the Technical Civil Aviation Council of the Ministry of Public Works and
Transport ("Consejo Técnico de Aviación Civil del Ministerio de Obras Públicas y
Transportes") and the Directorate General of Civil Aviation ("Dirección General de Aviación
Civil") or their successors;
(c) for El Salvador, the Ministry of Foreign Affairs ("Ministerio de Relaciones Exteriores"),
the Directorate General of Air Transport ("Dirección General de Transporte Aéreo") and the
Vice-Ministry of Transport ("Viceministerio de Transporte") or their successors;
(d) for Guatemala, the Directorate General of Civil Aeronautics ("Dirección General de
Aeronáutica Civil") or its successor;
(e) for Honduras, the Directorate General of Civil Aeronautics of the Department of
Public Works, Transport and Housing ("Dirección General de Aeronáutica Civil, Secretaría de
Obras Públicas, Transporte y Vivienda") or its successor; and
(f) for Nicaragua, the Directorate General of Civil Aeronautics of the Ministry of
Transport and Infrastructure ("Dirección General de Aeronáutica Civil, Ministerio de
Transporte e Infraestructura") or its successor.
CHAPTER 13. TELECOMMUNICATIONS
Article 13.01 Exclusion
This Chapter does not apply between Chile and Costa Rica.
authorized equipment means terminal or other equipment that has been approved for
attachment to the public telecommunications transport network in accordance with a Party’s
conformity assessment procedures;
conformity assessment procedure means "conformity assessment procedure" as

defined in Article 9.01 (Definitions) and includes the procedures referred to in Annex 13.02;
enhanced or value-added services means those telecommunications services

employing computer processing applications that:
(a) Act on the format, content, code, protocol or similar aspects of a customer’s
transmitted information;
(b) provide a customer with additional, different or restructured information; or
(c) involve customer interaction with stored information;
intracorporate communications means telecommunications through which an

enterprise communicates:
(a) Internally or with or among its subsidiaries, branches or affiliates, as defined by each
Party; or
(b) on a non-commercial basis with other persons that are fundamental to the economic
activity of the enterprise and that have a continuing contractual relationship with it;
but does not include telecommunications services provided to persons other than
those described herein;
principal provider or dominant operator means a provider with the capacity to

significantly affect the conditions of participation (from the standpoint of prices and
supplies) in a given telecommunications services market, as a result of controlling essential
installations or the use of its market position;
monopoly means an entity, including a consortium or government agency, that in any

relevant market in the territory of a Party maintains or is designated under its legislation as
the sole provider of public telecommunications transport networks or services;
network termination point means the final demarcation of the public

telecommunications transport network at the customer’s premises;
private telecommunications transport network means a telecommunications

transport network that is used exclusively for intracorporate communications or between
predetermined individuals;
protocol means a set of rules and formats that govern the exchange of information
between two peer entities for purposes of transferring signalling or data information;
public telecommunications transport network means the telecommunications
transport network used to commercially operate telecommunications services to meet the
needs of the public generally, not including the terminal equipment of customers or
telecommunications transport networks beyond the network termination point;
public telecommunications transport service means any telecommunications

transport service required by a Party, explicitly or in effect, to be offered to the public
generally, including telegraph, telephone, telex and data transmission, that typically involves
the real-time transmission of customer-supplied information between two or more points
without any end-to-end change in the form or content of the customer’s information;
standards-related measure means a "standards related measure" as defined in

Article 9.01 (Definitions);
telecommunications means the transmission, emission or reception of signs, signals,

written words, images, sounds and information of any type by wire, radio, optical means or
other electromagnetic systems;
telecommunications service means a service provided by means of the transmission

and reception of signals by wire, radio, optical means or other electromagnetic systems, but
does not mean the cable, broadcast or other electromagnetic distribution of radio or
television programming; and
terminal equipment means any digital or analogue device capable of processing,

receiving, switching, signalling or transmitting signals by electromagnetic means and that is
connected by radio or wire to a public telecommunications transport network at a
termination point.
1. This Chapter applies to:
(a) Measures adopted or maintained by a Party relating to the provision of public

telecommunications services;
(b) measures adopted or maintained by a Party relating to access to and use of public
telecommunications transport networks or services by persons of another Party, including
access and use by such persons operating private networks for intracorporate
communications;
(c) measures adopted or maintained by a Party relating to the provision of enhanced or

value-added services by persons of another Party in the territory, or across the borders, of
the first Party; and
(d) standards-related measures relating to attachment of terminal or other equipment to

public telecommunications transport networks.
2. Except to ensure that persons operating broadcast stations and cable systems have
continued access to and use of public telecommunications transport networks and services,
this Chapter does not apply to any measure adopted or maintained by a Party relating to
broadcast or cable distribution of radio or television programming.
3. Nothing in this Chapter shall be construed to:
(a) Require a Party to authorize a person of another Party to establish, construct,

acquire, lease, operate or provide telecommunications transport networks or
telecommunications transport services;
(b) require a Party, or require a Party to compel any person, to establish, construct,
acquire, lease, operate or provide telecommunications transport networks or
telecommunications transport services not offered to the public generally;
(c) prevent a Party from prohibiting persons operating private networks from using their
networks to provide public telecommunications transport networks or services to third
persons; or
(d) require a Party to compel any person engaged in the broadcast or cable distribution
of radio or television programming to make available its cable or broadcast facilities as a
public telecommunications transport network.
Article 13.04 Access to and use of public telecommunications transport networks and
services
1. For purposes of this Article, "non-discriminatory" means on terms and conditions no

less favourable than those accorded to any other customer or user of like public
telecommunications transport networks or services in like circumstances.
2. Each Party shall ensure that persons of another Party have access to and use of any
public telecommunications transport network or service, including private leased circuits,
offered in its territory or across its borders for the conduct of their business, on reasonable
and non-discriminatory terms and conditions, including as set out in the other paragraphs of
this Article.
3. Subject to paragraphs 7 and 8, each Party shall ensure that such persons are
permitted to:
(a) Purchase or lease, and attach terminal or other equipment that interfaces with the
public telecommunications transport network;
(b) interconnect private leased or owned circuits with public telecommunications

transport networks in the territory, or across the borders, of that Party, including for use in
providing dial-up access to and from their customers or users, or with circuits leased or
owned by another person on terms and conditions mutually agreed by those persons, as
established in Annex 13.04;
(c) perform switching, signalling and processing functions; and
(d) use operating protocols of their choice, in accordance with the technical plans of
each Party.
4. Each Party shall ensure that the pricing of public telecommunications transport
services reflects economic costs directly related to providing the services without detriment
to its domestic law. Nothing in this paragraph shall be construed to prevent cross-
subsidization between public telecommunications transport services.
5. Each Party shall ensure that persons of another Party may use public
telecommunications transport networks or services for the movement of information in its
territory or across its borders, including for intracorporate communications, and for access
to information contained in data bases or otherwise stored in machine-readable form in the
territory of another Party.
6. Further to Article 20.02 (General Exceptions), nothing in this Chapter shall be

construed to prevent a Party from adopting or enforcing any measure necessary to:
(a) Ensure the security and confidentiality of messages; or
(b) protect the privacy of subscribers to public telecommunications transport networks

or services.
7. Further to Article 13.06, each Party shall ensure that no condition is imposed on
access to and use of public telecommunications transport networks or services, other than
that necessary to:
(a) Safeguard the public service responsibilities of providers of public

telecommunications transport networks or services, in particular their ability to make their
networks or services available to the public generally; or
(b) protect the technical integrity of public telecommunications transport networks or

services.
8. Provided that conditions for access to and use of public telecommunications

transport networks or services satisfy the criteria set out in paragraph 7, such conditions
may include:
(a) A restriction on resale or shared use of such services;
(b) a requirement to use specified technical interfaces, including interface protocols, for
interconnection with such networks or services;
(c) a restriction on interconnection of private leased or owned circuits with such

networks or services or with circuits leased or owned by another person, when the circuits
are used in the provision of public telecommunications transport networks or services; and
(d) a licensing, permit, concession, registration or notification procedure which, if

adopted or maintained, is transparent and applications filed thereunder are processed
expeditiously.
Article 13.05 Conditions for the provision of enhanced or value-added services
1. Each Party shall ensure that:
(a) Any licensing, permit, concession, registration or notification procedure that it

adopts or maintains relating to the provision of enhanced or value-added services is
transparent and non-discriminatory, and that applications filed thereunder are processed
expeditiously; and
(b) information required under such procedures is limited to that necessary to
demonstrate that the applicant has the financial solvency to begin providing services or to
assess conformity of the applicant’s terminal or other equipment with the Party’s applicable
standards or technical regulations, or requirements related to the legal establishment of the
applicant;
2. Without prejudice to the law of each Party, no Party may require a person providing
enhanced or value-added services to:
(a) Provide those services to the public generally;
(b) cost-justify its rates;
(c) file a tariff;
(d) interconnect its networks with any particular customer or network; or
(e) conform with any particular standard or technical regulation for interconnection other
than for interconnection to a public telecommunications transport network.
3. Notwithstanding paragraph 2(c), a Party may require the filing of a tariff by:
(a) Such provider to remedy a practice of that provider that the Party has found in a
particular case to be anticompetitive under its law; or
(b) a monopoly, principal provider or dominant operator to which Article 13.07 applies.
Article 13.06 Standards-related measures
1. Each Party shall ensure that its standards-related measures relating to the
attachment of terminal or other equipment to the public telecommunications transport
networks, including those measures relating to the use of testing and measuring equipment
for conformity assessment procedures, are adopted or maintained only to the extent
necessary to:
(a) Prevent technical damage to public telecommunications transport networks;
(b) prevent technical interference with, or degradation of, public

telecommunications transport services;
(c) prevent electromagnetic interference, and ensure compatibility, with other

uses of the electromagnetic spectrum;
(d) prevent billing equipment malfunction;
(e) ensure users’ safety and access to public telecommunications transport

networks or services; or
(f) ensure efficient use of the electromagnetic spectrum.
2. A Party may require approval for the attachment to the public telecommunications
transport network of terminal or other equipment that is not authorized, provided that the
criteria for that approval are consistent with paragraph 1.
3. Each Party shall ensure that the network termination points for its public
telecommunications transport networks are defined on a reasonable and transparent basis.
4. No Party may require separate authorization for equipment that is connected on the
customer’s side of authorized equipment that serves as a protective device fulfilling the
criteria of paragraph 1.
5. Each Party shall:
(a) Ensure that its conformity assessment procedures are transparent and non-
discriminatory and that applications filed thereunder are processed expeditiously;
(b) permit any technically qualified entity to perform the testing required under the
Party’s conformity assessment procedures for terminal or other equipment to be attached
to the public telecommunications transport network, subject to the Party’s right to review
the accuracy and completeness of the test results; and
(c) ensure that any measure that it adopts or maintains requiring persons to be
authorized to act as agents for suppliers of telecommunications equipment before the
Party’s relevant conformity assessment bodies is non-discriminatory.
6. No later than twelve months after the date of entry into force of this Agreement,
each Party shall adopt, as part of its conformity assessment procedures, provisions
necessary to accept the test results from laboratories or testing facilities in the territory of
another Party for tests performed in accordance with the accepting Party’s standards-
related measures and procedures.
Article 13.07 Monopolies or anti-competitive practices
1. Where a Party maintains or designates a monopoly or where there is a principal

provider or dominant operator to provide public telecommunications transport networks or
services, and it, directly or through an affiliate, competes in the provision of enhanced or
value-added services or other telecommunications-related services or telecommunications-
related goods, the Party shall ensure that the monopoly, principal provider or dominant
operator does not use its position to engage in anticompetitive conduct in those markets,
either directly or through its dealings with its affiliates, in such a manner as to affect
adversely a person of another Party. Such conduct may include cross-subsidization,
predatory conduct and the discriminatory provision of access to public telecommunications
transport networks or services.
2. To prevent such anticompetitive conduct, each Party shall adopt or maintain

effective measures, such as:
(a) Accounting requirements;
(b) requirements for structural separation;
(c) rules to ensure that the monopoly, principal provider or dominant operator accords
its competitors access to and use of its public telecommunications transport networks or
services on terms and conditions no less favourable than those it accords to itself or its
affiliates; or
(d) rules to ensure the timely disclosure of technical changes to public
telecommunications transport networks and their interfaces.
Article 13.08 Transparency
Further to Article 17.03 (Publication), each Party shall make publicly available its
measures relating to access to and use of public telecommunications transport networks or
services, including measures relating to:
(a) Tariffs and other terms and conditions of service;
(b) specifications of technical interfaces with the networks or services;
(c) information on bodies responsible for the preparation and adoption of standards-
related measures affecting such access and use;
(d) conditions applying to attachment of terminal or other equipment to the networks;

and
(e) notification, permit, registration, certification, licensing or concession requirements.
Article 13.09 Relation to other chapters
In the event of any inconsistency between this Chapter and another Chapter, this
Chapter shall prevail to the extent of the inconsistency.
Article 13.10 Relation to international organizations and agreements
The Parties recognize the importance of international standards for global

compatibility and interoperability of telecommunication networks or services and undertake
to promote those standards through the work of relevant international bodies, including the
International Telecommunication Union, the International Organization for Standardization
and the Inter-American Telecommunications Commission.
Article 13.11 Technical cooperation and other consultations
1. To encourage the development of interoperable telecommunications transport

services infrastructure, the Parties shall cooperate in the exchange of technical information,
the development of government-to-government training programmes and other related
activities. In implementing this obligation, the Parties shall give special emphasis to existing
exchange programmes.
2. The Parties shall consult with a view to determining the feasibility of further
liberalizing trade in all telecommunications services, including public telecommunications
transport networks and services.
ANNEX 13.02
CONFORMITY ASSESSMENT PROCEDURES
For the purposes of this Chapter, conformity assessment procedures include:
(a) For Chile:

(i) Law 18.168, General Law on Telecommunications ("Ley 18.168, Ley General de
Telecomunicaciones");
(ii) Law 18.838, Law on the National Television Council ("Ley 18.838, Consejo Nacional
de Televisión") and amendments thereto;
(iii) Law 16.643, Law on Abuse of Publicity ("Ley 16.643, Ley sobre Abusos de
Publicidad");
(iv) Supreme Decree 220 of the Ministry of Transport and Telecommunications of 1981
("Decreto Supremo 220 del Ministerio de Transportes y Telecomunicaciones de 1981"); and
(v) Regulation on the Homologation of Telephone Equipment ("Reglamento de

Homologación de Aparatos Telefónicos");
(b) for El Salvador:
(i) Legislative Decree 142 of 6 November 1997, the Telecommunications Law

("Decreto Legislativo Nº 142 del 6 de noviembre de 1997, Ley de Telecomunicaciones");
and
(ii) Executive Decree 64 of 15 May 1998, Regulations of the Telecommunications
Law ("Decreto Ejecutivo Nº 64 del 15 de mayo de 1998, Reglamento de la Ley de
(c) for Guatemala:
(i) Congressional Decree 94-96, General Telecommunications Law ("Decreto Nº

94-96 del Congreso de la República, Ley General de Telecomunicaciones");
(ii) Congressional Decree 115-97, Amendments to the General
Telecommunications Law ("Decreto Nº 115-97 del Congreso de la República, Reformas a la
Ley General de Telecomunicaciones");
(iii) Government Resolution 574-98, Regulations for the Operation of Satellite
Systems in Guatemala ("Acuerdo Gubernativo Nº 574-98, Reglamento para la Explotación de
Sistemas Satelitales en Guatemala"); and
(iv) Government Resolution 408-99, Regulations for the Provision of International
Telephone Service ("Acuerdo Gubernativo Nº 408-99, Reglamento para la Prestación del
Servicio Telefónico Internacional");
(d) for Honduras:
(i) Decree 185-95 of 31 October 1995, Telecommunications Framework Law

("Decreto Nº 185-95 del 31 de octubre de 1995, Ley Marco del Sector de
(ii) Resolution 89-97 of 27 May 1997, General Regulations of the
Telecommunications Framework Law ("Acuerdo Nº 89-97 del 27 de mayo de 1997,
Reglamento General de la Ley Marco del Sector de Telecomunicaciones");
(iii) Decree 244-98 of 19 September 1998 ("Decreto Nº 244-98 del 19 de
septiembre de 1998");
(iv) Decree 89-99 of 25 May 1999 ("Decreto Nº 89-99 del 25 de mayo de
1999");
(v) Resolution OD 003/99, Gazette of 26 February 1999 ("Resolución OD
003/99, La Gaceta, 26 febrero 1999"); and
(vi) Resolution 105/98, Gazette 0f 11 July 1998 ("Resolución 105/98, La
Gaceta, 11 julio 1998"); and
(e) For Nicaragua:
(i) Law 200 of 8 August 1995, General Telecommunications and Postal

Services Law published in Gazette 154 of 18 August 1995 ("Ley Nº 200 del 8 de agosto de
1995, Ley General de Telecomunicaciones y Servicios Postales, La Gaceta Nº 154, 18 agosto
1995");
(ii) Law 210 of 30 November 1995, Law Incorporating Private Parties in

the Operation and Expansion of Public Telecommunications Services published in Gazette
231 of 7 December 1995 ("Ley Nº 210 del 30 de noviembre de 1995, Ley de Incorporación
de Particulares en la Operación and Ampliación de los Servicios Públicos de las
Telecomunicaciones, La Gaceta Nº 231, 7 diciembre 1995");
(iii) Decree 19-96 of 12 September 1996, Regulations of the General

Telecommunications and Postal Services Law, published in Gazette 177 of 19 September
1996 ("Decreto Nº 19-96 del 12 de septiembre de 1996, Reglamento de la Ley General de
Telecomunicaciones and Servicios Postales, La Gaceta Nº 177, 19 septiembre 1996");
(iv) Law 293 of 1 July 1998, Law Amending Law 210, published in
Gazette 123 of 2 July 1998 ("Ley Nº 293 de 1 de julio de 1998, Ley de reforma a la Ley N°
210, La Gaceta N° 123, 2 julio 1998"); and
(v) Nicaraguan Commercial Code of 1916 ("Código de Comercio de

Nicaragua de 1916").
ANNEX 13.04
INTERCONNECTION OF PRIVATE CIRCUITS
For the purposes of Article 13.04, for Chile, El Salvador, Guatemala, Honduras and
Nicaragua, the interconnection of private circuits to public telecommunications transport
networks shall not provide access to traffic from such private circuits to public networks or
vice versa, regardless of whether the private circuits are leased or owned.
CHAPTER 14. TEMPORARY ENTRY FOR BUSINESS PERSONS
business activity means legitimate activities of a commercial nature, established and

operated to obtain profits on the market. It does not include the possibility of obtaining
employment, wages or remuneration from a source of employment in the territory of a
Party;
business person means a national who is engaged in trade in goods, the provision of
services or the conduct of investment activities;
labour certification means the procedure carried out by the competent administrative
authority to determine whether a national of a Party who wishes to obtain temporary entry
into the territory of another Party would displace national labour in the same industry or
have a significant adverse effect on labour conditions in that industry;
national means "national" as defined in Article 2-01 (Definitions of General
Application) but does not include permanent residents;
pattern of practice means a practise carried out by the immigration authorities of a

Party repeatedly over a representative period immediately prior to the most recent
occurrence; and
temporary entry means entry into the territory of a Party by a business person of
another Party without the intent to establish permanent residence.
2. For the purposes of Annex 14.04:
executive functions means functions assigned in an organization whereby the person

to whom they are assigned basically has the following responsibilities:
(a) To direct the administration of the organization or of a relevant component or

function thereof;
(b) to establish the policies and objectives of the organization, component or function;
or
(c) to receive supervision or general direction only from more senior executives of the
organization, its board of directors or shareholders;
management functions means functions assigned in an organization whereby the

person to whom they are assigned basically has the following responsibilities:
(a) To direct the organization or an essential function of the organization;
(b) to supervise and control the work of other professional employees, supervisors or
administrators;
(c) to have the authority to hire and dismiss or recommend hiring and dismissal and
other aspects of personnel management which are being directly supervised by that person
and to carry out senior functions in the organizational structure or with respect to the
function for which the person is responsible; or
(d) to act with discretionary authority in the day-to-day operation of the function for
which the person is responsible; and
functions that require specialized knowledge means functions that involve special
knowledge of a good, service, research, equipment, techniques, administration of the
organization or its interests and their application on international markets, or an advanced
level of knowledge or experience in the organization’s processes and procedures.
Article 14.02 General principles
Further to Article 1.02 (Objectives), this Chapter reflects the preferential trading
relationship that exists among the Parties, the desirability of facilitating temporary entry on
a reciprocal basis and of establishing transparent criteria and procedures for that purpose,
and the need to ensure border security and to protect the domestic labour force and
permanent employment in their respective territories.
Article 14.03 General obligations
1. Each Party shall apply its measures relating to the provisions of this Chapter in
accordance with Article 14.02 and, in particular, shall apply those measures expeditiously so
as to avoid unduly impairing or delaying trade in goods or services or the conduct of
investment activities under this Agreement.
2. The Parties shall endeavour to develop and adopt common criteria, definitions and
interpretations for the implementation of this Chapter.
Article 14.04 Grant of temporary entry
1. Each Party shall grant temporary entry to business persons who are otherwise
qualified for entry under applicable measures relating to public health and safety and national
security, in accordance with this Chapter, including the provisions of Annexes 14.04 and
14.04(1).
2. A Party may refuse to issue an immigration document authorizing employment to a

business person where the temporary entry of that person might affect adversely:
The settlement of any labour dispute that is in progress at the place or intended place of
employment; or
(b) the employment of any person who is involved in such dispute.
3. When a Party refuses, pursuant to paragraph 2, to issue an immigration document

authorizing employment, it shall:
Inform in writing the business person of the reasons for the refusal; and
(b) promptly notify in writing the other Party of the reasons for the refusal.
4. Each Party shall limit any fees for processing applications for temporary entry of
business persons to the approximate cost of services rendered.
5. A grant of temporary entry under this Chapter does not replace the requirements for
the exercise of a profession or activity under the specific rules in effect in the territory of
the Party granting temporary entry.
Article 14.05 Provision of information
1. Further to Article 17.03 (Publication), each Party shall:
Provide to another Party such materials as will enable it to become acquainted with its
measures relating to this Chapter; and
no later than one year after the date of entry into force of this Agreement, prepare, publish
and make available in its own territory, and in the territory of the other Parties, explanatory
material in a consolidated document regarding the requirements for temporary entry under
this Chapter in such a manner as will enable business persons of the other Parties to become
acquainted with them.
2. Each Party shall collect and maintain, and make available to another Party in
accordance with its domestic law, data respecting the granting of temporary entry under
this Chapter to business persons of that other Party who have been issued immigration
documentation, including data specific to each authorized category.
Article 14.06 Dispute settlement
1. A Party may not initiate proceedings under Article 19.07 (Commission, Good Offices,
Conciliation and Mediation) regarding a refusal to grant temporary entry under this Chapter
or a particular case arising under Article 14.03 unless:
The matter involves a pattern of practice; and
(b) the business person has exhausted the available administrative remedies regarding
the particular matter.
2. The remedies referred to in paragraph (1)(b) shall be deemed to be exhausted if a

final determination in the matter has not been issued by the competent authority within six
months of the institution of an administrative proceeding, and the failure to issue a
determination is not attributable to delay caused by the business person.
Except for this Chapter, Chapters 1 (Initial Provisions), 2 (General Definitions),

18 (Administration of the Agreement) and 21 (Final Provisions) and Articles 17.02 (Contact
Points), 17.03 (Publication), 17.04 (Provision of Information) and 17.06 (Administrative
Proceedings for the Adoption of Measures of General Application), no provision of this
Agreement shall impose any obligation on a Party regarding its immigration measures.
ANNEX 14.04
TEMPORARY ENTRY OF BUSINESS PERSONS
Section A – Business Visitors
1. Each Party shall grant temporary entry to a business person seeking to engage in a
business activity set out in Appendix 14.04(A)(1), with no requisites other than those
established in the immigration measures applicable to temporary entry, on presentation of:
Proof of citizenship of a Party;
documentation demonstrating that the business person will be so engaged and describing
the purpose of entry; and
evidence demonstrating that the proposed business activity is international in scope and
that the business person is not seeking to enter the local labour market.
2. Each Party shall provide that a business person may satisfy the requirements of
paragraph 1(c) by demonstrating that:
The primary source of remuneration for the business activity is outside the territory of the
Party granting temporary entry; and
the business person’s principal place of business and the actual place of accrual of profits, at
least predominantly, remain outside the territory of the Party granting temporary entry.
For the purposes of this paragraph, a Party shall normally accept a declaration as to
the principal place of business and the actual place of accrual of profits. Where the Party
requires further proof, it shall act in accordance with its law.
3. Each Party shall grant temporary entry to a business person seeking to engage in a
business activity other than those set out in Appendix 14.04(A)(1) on a basis no less
favourable than that provided under the measures set out in Appendix 14.04(A)(3).
4. No Party may:
As a condition for granting temporary entry under paragraph 1 or 3, require prior approval
procedures, petitions, labour certification tests or other procedures of similar effect; or
impose or maintain any numerical restriction relating to temporary entry under paragraph 1
or 3.
5. Notwithstanding paragraph 4, a Party may require a business person seeking

temporary entry under this Section to obtain a visa or its equivalent prior to entry. The
Parties shall consider the possibility of avoiding the imposition of the visa requirement or its
elimination.
Section B – Traders and Investors
1. Each Party shall grant temporary entry and provide confirming documentation to a
business person in a capacity that is supervisory, executive or involves specialized
knowledge, provided that the business person otherwise complies with existing immigration
measures applicable to temporary entry, seeking to:
(a) Carry on substantial trade in goods or services principally between the

territory of the Party of which the business person is a national and the territory of the
other Party into which entry is sought; or
(b) establish, develop, administer or provide advice or key technical services to

the operation of an investment to which the business person or the business person’s
enterprise has committed, or is in the process of committing, a substantial amount of
capital.
2. No Party may:
(a) As a condition for granting temporary entry under paragraph 1, require labour
certification tests or other procedures of similar effect; or
(b) impose or maintain any numerical restriction relating to temporary entry

under paragraph 1.

elimination.
Section C – Intra-Company Transferees
1. Each Party shall grant temporary entry and provide confirming documentation to a
business person employed by an enterprise who seeks to render services to that enterprise
or a subsidiary or affiliate thereof, in the form of management or executive functions or in a
capacity that involves specialized knowledge, provided that the business person otherwise
complies with existing immigration measures applicable to temporary entry. A Party may
require the business person to have been employed continuously by the enterprise for one
year within the three-year period immediately preceding the date of the application for
admission.
2. No Party may:
(a) As a condition for granting temporary entry under paragraph 1, require labour
certification tests or other procedures of similar effect; or
(b) impose or maintain any numerical restriction relating to temporary entry

under paragraph 1.

elimination.
ANNEX 14.04(1)
COUNTRY-SPECIFIC RULES FOR THE
TEMPORARY ENTRY OF BUSINESS PERSONS
For Chile
1. Business persons who enter Chile in any of the categories set out in Annex 14.04
shall be considered to engage in activities that are useful or beneficial for the country.
2. Business persons who enter Chile in any of the categories set out in Annex 14.04
shall be in possession of a temporary residence visa, which may be renewed for consecutive
periods, provided the conditions under which it was granted are maintained. Such persons
may not apply for permanent residence or change their immigration status, unless they
comply with the general immigration requirements established in Decree Law 1.094 of 1975
("Decreto Ley 1.094 de 1975") and Supreme Decree 597 of 1984 ("Decreto Supremo 597
de 1984") of the Ministry of the Interior ("Ministerio del Interior").
3. Business persons entering Chile may also obtain an identity card for foreigners.
For Costa Rica
1. Business persons who enter Costa Rica in any of the categories set out in
Annex 14.04 shall be considered to engage in activities that are useful or beneficial for the
country.
2. Business persons who enter Costa Rica in any of the categories set out in
Annex 14.04 shall be in possession of a temporary residence visa, which may be renewed for
consecutive periods, provided the conditions under which it was granted are maintained.
Such persons may not apply for permanent residence or change their immigration status,
unless they comply with the general immigration requirements established in the General
Immigration Law, Law 7033 of 4 August 1986 ("Ley General de Migración y Extranjería, Ley
número 7033 del 4 de agosto de 1986") and the Enabling Regulations ("Decreto Ejecutivo
19010 del 31 de mayo de 1989").
For El Salvador
1. Business persons who enter El Salvador in any of the categories set out in
country.
2. Business persons who enter El Salvador in any of the categories set out in
Annex 14.04 shall be in possession of a 90-day temporary business visa, which may be
renewed for an equal period, to be issued by the Directorate General of Immigration
("Dirección General de Migración") indicating the kind of business to be carried on in the
country, and the holder may only engage in that activity. Where the nature of the activity
requires remaining in the country for a longer period, a temporary residency permit shall be
granted for a period of one year, which may be renewed for consecutive periods, provided
the conditions under which it was granted are maintained. Such persons may not apply for
permanent residence, unless they comply with the general immigration requirements
established in the Immigration Law, Legislative Decree 2722 of 19 December 1958 and
amendments ("Ley de Migración, Decreto Legislativo N° 2772, del 19 de diciembre de
1958") and the Enabling Regulations ("Decreto Ejecutivo N° 33 del 9 de mayo de 1959").
For Guatemala
1. Business persons who enter Guatemala in any of the categories set out in
Annex 14.04 shall be in possession of a business visa and subject to the country’s
immigration laws.
2. Business visas shall be granted by the Directorate General of Immigration ("Dirección

General de Migración") or by Guatemalan consulates duly-accredited abroad.
3. Visas granted to foreigners do not imply their unconditional admission into the
territory of the Republic and shall only be affixed to valid passports or travel documents
issued by the competent authority.
For Honduras
1. Business persons who enter Honduras in any of the categories set out in
country.
2. Business persons who enter Honduras in any of the categories set out in
consecutive periods, provided the conditions under which it was granted are maintained.
Such persons may not apply for permanent residence or change their immigration status,
unless they comply with the general immigration requirements established in the Population
and Immigration Policy Law, Decree 34 of 25 September 1970 ("Ley de Población y Política
Migratoria, Decreto N° 34 del 25 de septiembre de 1970") and Resolution 8 on Procedures in
respect of Immigration Facilities for Foreign Investors and Business Persons of 19 August
1988 ("Acuerdo N° 8 sobre Procedimientos Sobre Facilidades Migratorias a Inversionistas y
Comerciantes Extranjeros del 19 de agosto de 1988").
For Nicaragua
1. Business persons who enter Nicaragua in any of the categories set out in
country.
2. Business persons who enter Nicaragua in any of the categories set out in
consecutive periods of up to three years, provided the conditions under which it was granted
are maintained. Such persons may not apply for permanent residence or change their
immigration status, unless they comply with the general immigration requirements
established in the Immigration Law, Law 153 published in Gazette 80 of 30 April 1993 ("Ley
de Migración, Ley Nº 153, La Gaceta Nº 80, 30 abril 1993") and the Law in respect of Alien
Residents published in Gazette 81 of 3 May 1993 ("Ley de Extranjería, Ley Nº 154, La
Gaceta Nº 81, 3 mayo 1993").
APPENDIX 14.04(A)(1)
BUSINESS VISITORS
Research and design
- Technical, scientific and statistical researchers conducting independent research or

research for an enterprise located in the territory of another Party.
Growth, manufacture and production
- Purchasing and production management personnel conducting commercial

transactions for an enterprise located in the territory of another Party.
Marketing
- Market researchers and analysts conducting research independently or for an

enterprise located in the territory of another Party.
- Trade fair and promotional personnel attending a trade convention.
Sales
- Sales representatives and agents taking orders or negotiating contracts for goods or
services for an enterprise located in the territory of another Party but not delivering goods
or providing services.
- Buyers purchasing for an enterprise located in the territory of another Party.
Distribution
- Customs brokers providing consulting services regarding the facilitation of the import
or export of goods.
After-sales service
- Installers, repair and maintenance personnel, and supervisors, possessing specialized

technical knowledge essential to a seller's contractual obligation, performing services or
training workers to perform services, pursuant to a warranty or other service contract
incidental to the sale of commercial or industrial equipment or machinery, including computer
software, purchased from an enterprise located outside the territory of the Party into which
temporary entry is sought, during the life of the warranty or service agreement.
General service
- Consultants engaging in a business activity involving the cross-border provision of

services.
- Management and supervisory personnel engaging in a commercial transaction for an

enterprise located in the territory of another Party.
- Financial services personnel engaging in commercial transactions for an enterprise

located in the territory of another Party.
- Public relations and advertising personnel consulting with business associates, or

attending or participating in conventions.
- Tourism personnel (tour and travel agents, tour guides or tour operators) attending
or participating in conventions or conducting a tour that has begun in the territory of
another Party.
- Translators or interpreters performing services as employees of an enterprise located

in the territory of another Party.
APPENDIX 14.04(A)(3)
EXISTING IMMIGRATION MEASURES
For Chile:
Section I, paragraph 6, of Decree Law 1.094, Official Gazette 19 July 1975, the
Immigration Law ("Decreto Ley 1.094, Diario Oficial, 19 julio 1975", Ley de Extranjería") and
Section III of Supreme Decree 597 of the Ministry of the Interior, Official Gazette 24
November 1984, the Immigration Regulations ("Decreto Supremo 597 del Ministerio del
Interior, Diario Oficial, 24 noviembre 1984, Reglamento de Extranjería").
For Costa Rica:
Sections II, III, IV, V, VII, VIII and X of the General Immigration Law, Law 7033 of
4 August 1986 ("Ley General de Migración and Extranjería, Ley número 7033 del 4 de
agosto de 1986") and the Regulations of the General Immigration Law, Executive Decree
19010 of 31 May 1989 ("Reglamento a la Ley General de Migración y Extranjería, Decreto
Ejecutivo número 19010 del 31 de mayo de 1989").
For El Salvador:
(a) The Immigration Law, Legislative Decree 2772 of 19 December 1958, published in
Official Gazette 240, Volume 171 of 23 December 1958 ("Ley de Migración, Decreto
Legislativo N° 2772 de 19 de diciembre de 1958, Diario Oficial Nº 240, tomo 181,
23 diciembre 1958");
(b) the Regulations of the Immigration Law, Executive Decree 33 of 9 March 1959,
published in Official Gazette 56, Volume 182 of 31 March 1959 ("Reglamento de la Ley de
Migración, Decreto Ejecutivo N° 33 de 9 de marzo de 1959, Diario Oficial Nº 56, tomo 182,
31 marzo 1959"); and
(c) the Law in respect of Alien Residents, Legislative Decree 299 of 18 February 1986,
published in Official Gazette 34, Volume 290 of 20 February 1986 ("Ley de Extranjería,
Decreto Legislativo N° 299 de 18 de febrero de 1986, Diario Oficial N° 34, tomo 290, 20
febrero 1986").
For Honduras:
The Population and Immigration Policies Law, Decree 34 of 25 September 1970

("Ley de Población y Políticas Migratorias, Decreto Nº 34 del 25 de septiembre de 1970")
and Resolution 8 on Procedures Regarding Immigration Facilities for Investors and Business
People of 19 August 1998 ("Acuerdo Nº 8 sobre Procedimientos Sobre Facilidades
Migratorias a Inversionistas y Comerciantes Extranjeros del 19 de agosto de 1998").
For Guatemala:
(a) Article 85 of the Immigration Law, published in the Official Gazette of Central
America on 23 December 1998 ("Decreto Nº 95-98, Diario Oficial de Centroamérica, 23
diciembre 1998"); and
(b) Article 77 of the Immigration Regulations, Resolution 529-99, published in the Official
Gazette of Central America on 29 July 1999 ("Acuerdo Nº 529-99, Reglamento de
Migración, Diario Oficial de Centroamérica, 29 julio 1999").
For Nicaragua:
(a) Chapter II, Articles 7 through 40 of Law 153 of 24 February 1993, published in
Gazette 80 of 30 April 1993 ("Ley N° 153 del 24 de febrero de 1993, La Gaceta Nº 80, 30
abril 1993");
(b) Article 13 of Law 154 of 10 March 1993, published in Gazette 81 of 3 May 1993
("Ley N° 154 del 10 de marzo de 1993, La Gaceta Nº 81, 3 mayo 1993"); and
(c) Decree 628, Nicaraguan Law on Resident Pensioners or Persons of Independent

Means, published in Gazette 264 of 19 November 1974 ("Decreto Nº 628, Ley de
Residentes Pensionados o Rentistas de Nicaragua, La Gaceta Nº 264, 19 noviembre 1974").
PART FIVE. COMPETITION POLICY
CHAPTER 15. COMPETITION POLICY
1. The Parties shall ensure that the benefits of this Agreement are not undermined by
anti-competitive business practices. They shall also endeavour to work toward the adoption
of common rules to avoid such practices.
2. The Parties shall endeavour to establish mechanisms to facilitate and promote the
development of competition policy and ensure the application of rules on free competition
among and within the Parties to avoid the adverse effects of anti-competitive business
practices in the free trade area.
Article 15.02 Monopolies and State enterprises
1. For the purposes of this Article:
monopoly means an entity, including a consortium or government agency, that in any

relevant market in the territory of a Party is designated as the sole provider or purchaser of
a good or service, but does not include an entity that has been granted an exclusive
intellectual property right solely by reason of such grant; and
non-discriminatory treatment means the better of national treatment and most-

favoured-nation treatment, as set out in the relevant provisions of this Agreement.
2. Nothing in this Agreement shall be construed to prevent a Party from designating a

monopoly, provided its law so permits.
3. Each Party shall adjust to the provisions of this Agreement to ensure that any
monopoly and State enterprise it establishes acts in a manner that is not inconsistent with
the Party’s obligations under this Agreement and provides non-discriminatory treatment to
the investments of investors, goods and service providers of another Party.
4. This Article does not apply to procurement by governmental agencies of goods or

services for governmental purposes and not with a view to commercial resale or use in the
production of goods or the provision of services for commercial sale.
PART SIX. GOVERNMENT PROCUREMENT
CHAPTER 16. GOVERNMENT PROCUREMENT
entities means all public entities of the Parties except those listed in Annex 16.01;
government procurement means any type of government procurement of goods,

services, or of a combination of goods and services, envisaged in the respective legislation
and carried out by the public entities of the Parties. This concept shall include public works
concessions;
offsets means conditions imposed or considered by an entity prior to or in the course

of its procurement process that encourage local development or improve its Party's balance
of payments accounts, by means of requirements of local content, licensing of technology,
investment, counter-trade or similar requirements;
privatization means a process by means of which a public entity is released from

State control, be it through public tendering of shares in that entity or otherwise, as
provided for in the Parties’ applicable legislation;
supplier means a person of a Party who provides goods or services under this
Chapter;
technical specification means a specification which sets out the characteristics of

goods or their related processes and production methods, or the characteristics of services
or their related operating methods, including any applicable administrative provisions. It may
also include or deal exclusively with issues relating to terminology, symbols, packaging,
marking, labelling applicable to goods, processes, or production and operating methods; and
tendering procedures means all government procurement procedures other than

contracting on own account.
Article 16.02 Objective, scope and coverage
1. The objective of this Chapter is to establish and maintain a single market for
government procurement in order to maximize business opportunities for suppliers and
reduce the transaction costs of the public and private sectors in the Parties.
2. To attain this goal, each Party shall:
(a) Ensure that suppliers of another Party participate in government procurement

processes under equal conditions;
(b) ensure the principles of non-discrimination and transparency in government

procurement processes, as established in this Chapter; and
(c) develop mechanisms for cooperation and technical assistance.

3. Except as provided in Annexes 16.01 and 16.02, this Chapter shall apply to the
government procurement processes provided for in the laws of the Parties and
procurements by their entities relating to:
(a) Goods; and
(b) services, subject to Annexes I and II of Chapter 11 (Cross-Border Trade in Services).
4. Notwithstanding paragraph 3(b), this Chapter does not apply to:
(a) Subsidies or donations accorded by a Party or a State enterprise, including loans,

guarantees and insurance supported by a Party;
(b) government services or functions, such as law enforcement, correctional services,

income security or insurance, social security, social welfare, public education, public training,
health, and child care; or
(c) cross-border financial services.
Article 16.03 General rights and obligations
1. The Parties agree upon the following rights and obligations, as provided in this
Chapter:
(a) To apply the measures relating to government procurement in such a way as to allow
the greatest possible degree of competition, while respecting the principles of transparency
and non-discrimination and the other provisions of this Chapter;
(b) to promote business opportunities to enable suppliers to compete in government

procurement, preferably on the basis of the quality-price ratio principle, provided that
application of this principle is compatible with the nature of the procurement in question.
Application of this principle is intended to obtain the most efficient results with the financial
resources allocated to the entities that tender the contracts, taking into account the public
needs of such entities;
(c) to ensure maximum simplicity and publicity in the application of government
procurement measures;
(d) to maintain and promote business opportunities in government procurement

processes for suppliers from other Parties during the implementation periods, to comply with
the commitments arising from the international agreements on this matter to which they are
party;
(e) to grant equitable opportunities to suppliers from other Parties in government

procurement processes; and
(f) to refrain from applying measures that:
(i) Are discriminatory;
(ii) are arbitrary; or
(iii) have the effect of denying equal access or opportunity to a supplier from another
Party.
2. No provision of this Chapter shall prevent a Party from developing a new
procurement policy, provided it is not inconsistent with this Chapter.
Article 16.04 National treatment and non-discrimination
1. With respect to government procurement carried out by entities through tendering,

each Party shall accord to goods, services and suppliers of another Party treatment no less
favourable than it accords to like goods, services and suppliers of like goods and services.
2. Without prejudice to the above, in government procurements that use procedures

different from those referred to in paragraph 1, the Parties shall adopt such measures as are
reasonably available to ensure compliance with the obligations established in
Article 16.03(1)(f).
3. Each Party shall ensure that its entities do not demand offsets from suppliers of
another Party participating in a government procurement process.
4. This Article does not apply to measures respecting customs duties or other charges
of any kind imposed on or in connection with importation, the method of levying such duties
or charges or other import regulations, including restrictions and formalities.
Article 16.05 Transparency and the provision of information
1. Further to Article 17.04 (Provision of Information), each Party shall ensure that its
entities effectively publish and afford an understanding of:
(a) Their respective systems of government procurement;
(b) the business opportunities created by the corresponding government procurement

processes, providing the suppliers of another Party with all the information necessary to
participate in said procurements; and
(c) the outcomes of government procurement processes.
2. Each Party shall ensure that contract awards are duly based on the criteria
established prior to the award by its contracting entities.
3. Each Party undertakes to inform the other Parties within not more than one year
after this Agreement comes into force of the legislation governing government procurement
in its territory and of the entities covered by this Chapter. This obligation extends to all
changes in such information.
Article 16.06 Technical specifications
Each Party shall ensure that its entities do not prepare, adopt, or apply any technical
specification with the purpose or effect of creating unnecessary obstacles to trade.
Article 16.07 Denial of benefits
Subject to prior notification and consultation in accordance with Articles 17.04

(Provision of Information) and 19.06 (Consultations), a Party may deny the benefits of this
Chapter to a service provider of another Party where the Party establishes that the service is
being provided by an enterprise that that has no substantial business activities in the
territory of the other Party and, in accordance with the law of that other Party, is owned or
controlled by persons of a non-Party.
Article 16.08 Appeal procedure
Each Party shall adopt or maintain administrative or judicial procedures that permit,
at the request of an affected supplier from another Party, the prompt review of
administrative decisions affecting government procurement under this Chapter. Each Party
shall ensure that such procedures are timely, transparent and effective and that they are
based on the principles of non-discrimination and due process.
Article 16.09 Modifications to coverage
1. The Parties shall hold consultations at the request of any of them to examine the
possibility of incorporating the entities listed in Annex 16.01 into this Chapter.
2. The Parties shall approve such agreements in accordance with Article 18.01(3)(b)
(Free Trade Commission).
Article 16.10 Privatization
1. No provision of this Chapter shall be construed to prevent a Party from privatizing an

entity covered in this Chapter. In such cases, another Party may not demand compensation.
2. Privatized entities shall not be subject to the application of this Chapter.
Article 16.11 Information technology
1. The Parties shall endeavour, to the extent possible, to use electronic means of
communication that permit the efficient publication of information on government
procurement, particularly on business opportunities offered by the entities.
2. To obtain a wider market for government procurement, the Parties shall endeavour to
implement an electronic information and intermediation system to be mandatory for their
entities. The main objective of the system shall be timely publication of the business
opportunities offered by the entities.
Article 16.12 Committee on government procurement
1. The Parties establish a Committee on Government Procurement, comprised of

representatives of each of them, to be appointed within three months after this Agreement
comes into force.
2. The Committee shall examine matters relating to this Chapter and, without detriment
to Article 18.05(2) (Committees), shall:
(a) Unless otherwise agreed by the Parties, review the results of the application of this
Chapter every two years;
(b) conduct consultations and studies intended to incorporate the entities listed in
Annex 16.01 into this Chapter;
(c) promote the development and implementation of the electronic information and
intermediation system referred to in Article 16.11(2);
(d) coordinate exchanges of statistical information on government procurement; and
(e) coordinate and promote the design of training programmes for the competent
authorities of the Parties.
Article 16.13 Cooperation and technical assistance
The Parties shall endeavour to provide each other with cooperation and technical
assistance through the development of training programmes, in order to afford a better
understanding of their respective government procurement and statistical systems and
greater access to their respective markets.
In the event of any inconsistency between this Chapter and another Chapter, this
Chapter shall prevail to the extent of the inconsistency.
ANNEX 16.01
ENTITIES
For Chile:
(a) Contraloría General de la República (Comptroller General of the Republic);
(b) Banco Central (Central Bank);
(c) the armed forces;
(d) public order and security forces;
(e) municipalities;
(f) Consejo Nacional de Televisión (National Television Council);
(g) State-owned enterprises;
(h) judicial branch – courts of law;
(i) legislative branch – Congress;
(j) Tribunal Constitucional (Constitutional Court);
(k) Tribunal Calificador de Elecciones (Electoral Tribunal) ;
(l) Tribunales Electorales Regionales (Regional Electoral Tribunals);
(m) Consejo Superior de Educación (Higher Council on Education); and

(n) Ministerio Público (Office of the Attorney General).
For Costa Rica:
(a) Contraloría General de la República (Comptroller General of the Republic);
(b) Ministerio de Gobernación y Policía (Ministry of the Interior and Police);

(c) Ministerio de Seguridad Pública (Ministry of Public Security);
(d) Banco Central de Costa Rica (Central Bank of Costa Rica);
(e) autonomous and semi-autonomous institutions and all other public entities
and companies;
(f) legislative branch;
(g) judicial branch;
(h) Tribunal Supremo de Elecciones (Supreme Electoral Tribunal);
(i) Defensoría de los Habitantes (Public Ombudsman);
(j) municipalities;
(k) non-governmental public entities;
(l) duty-free shops and similar entities subject to private law in their
procurements; and
(m) Consejo Superior de Educación (Higher Council on Education).
For El Salvador:
(a) Corte de Cuentas de la República (National Auditor General’s Office);
(b) Banco Central de Reserva de El Salvador (Central Reserve Bank of El

Salvador);
(c) Ministerio de la Defensa Nacional (Ministry of National Defence);
(d) Academia Nacional de Seguridad Pública (National Public Security Academy);
(e) Policía Nacional Civil (National Civil Police Force);
(f) municipalities;
(g) Dirección General de Espectáculos Públicos, Radio and Televisión (Directorate

General of Public Entertainment, Radio and Television);
(h) judicial branch;
(i) legislative branch;
(j) Tribunal Supremo Electoral (Supreme Electoral Tribunal);

(k) Ministerio Público (Office of the Attorney General);
(l) Loteria Nacional de Beneficencia (National Charitable Lottery);
(m) Dirección General de Correos (Directorate General of the Post Office);
(n) Comisión Ejecutiva Portuaria Autónoma, CEPA (Autonomous Port Executive

Committee); and
(o) Comisión Ejecutiva Hidroeléctrica del Río Lempa, CEL (Río Lempa Hydroelectric
Executive Committee).
For Guatemala:
(a) Ministerio de la Defensa Nacional (Ministry of National Defence);
(b) Instituto Nacional de Electrificación (National Electrification Administration);
(c) Contraloría General de Cuentas (Office of the Comptroller General);
(d) Banco de Guatemala (Bank of Guatemala);
(e) Ministerio de Gobernación (Ministry of the Interior);
(f) judicial branch;
(g) Congress;
(h) Corte de Constitucionalidad (Constitutional Court);
(i) Tribunal Supremo Electoral (Supreme Electoral Tribunal);
(j) Ministerio Público (Office of the Attorney General);
(k) Procuraduría General de la Nación (Department of Justice);
(l) state and municipal public companies;
(m) municipalities; and
(n) decentralized and autonomous public entities which, under their charters or
bylaws or another legal provision, are excluded from application of the procurement
procedures established in the Government Procurement Law and its Regulations,
Congressional Decree 57-92 (Ley de Contrataciones del Estado, Decreto N° 57-92 del
Congreso de la República y su Reglamento).
For Honduras:
(a) Tribunal Nacional de Elecciones (National Electoral Tribunal);
(b) State-owned public companies;

(c) municipalities;
(d) Presidencia de la República (Office of the President);
(e) Ministerio de Defensa Nacional (Ministry of National Defence);
(f) Ministerio de Seguridad (Ministry of Security);
(g) Programa de Asistencia Familiar, PRAF (Family Welfare Programme);
(h) Suplidora Nacional de Productos Básicos, BANASUPRO, (National Supply

Clearinghouse);
(i) Comité Permanente de Contingencias, COPECO (Standing Committee on

Contingencies); and
(j) public entities which, under their charters or another legal provision, are
excluded from the application of government procurement procedures.
ANNEX 16.02
TYPES OF PROCUREMENT
The types of government procurement that are excluded from this Chapter are:
(a) Government defence contracts of a strategic nature and other procurements related
to national security;
(b) government contracts to hire personnel assigned to perform duties inherent to the
entities; and
(c) government procurements funded by States, regional or multilateral organizations or

individuals that impose conditions inconsistent with the provisions of this Chapter.
PART SEVEN. ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS
CHAPTER 17. TRANSPARENCY
For the purposes of this Chapter, an administrative ruling of general application

means an administrative ruling or interpretation that applies to all persons and fact
situations that fall generally within its ambit and that establishes a norm of conduct but does
not include:
(a) A determination or ruling made in an administrative proceeding that applies to a

particular person, good or service of the other Party in a specific case; or
(b) a ruling that adjudicates with respect to a particular act or practice.
Article 17.02 Contact points
1. Each Party shall designate a contact point to facilitate communications among the
Parties on any matter covered by this Agreement.
2. On the request of a Party, the contact point shall identify the office or official
responsible for the matter and assist, as necessary, in facilitating communication with the
requesting Party.
Article 17.03 Publication
1. Each Party shall ensure that its laws, regulations, procedures and administrative
rulings of general application respecting any matter covered by this Agreement are promptly
published or otherwise made available in such a manner as to enable the other Parties and
interested persons to become acquainted with them.
2. To the extent possible, each Party shall:
(a) Publish in advance any such measure that it proposes to adopt; and
(b) provide interested persons and the other Parties a reasonable opportunity to
comment on such proposed measures.
Article 17.04 Provision of information
1. To the extent possible, each Party shall notify another Party of any proposed or
actual measure that the Party considers might affect or substantially affects the other
Party’s interests under this Agreement.
2. On request of another Party, a Party shall promptly provide information and respond
promptly to questions pertaining to any actual or proposed measure.
3. Any notification or information provided under this Article shall be without prejudice
as to whether the measure is consistent with this Agreement.
Article 17.05 Guarantees of hearings, legality and due process

Each Party shall ensure that judicial and administrative procedures relating to the
application of any of the measures referred to in Article 17.03(1) observe the guarantees of
hearing, legality and due process enshrined in their respective laws, in the sense of Articles
17.06 and 17.07.
Article 17.06 Administrative proceedings for the adoption of measures of general

application
With a view to administering in a consistent, impartial and reasonable manner all

measures of general application affecting matters covered by this Agreement, each Party
shall ensure in its administrative proceedings applying measures referred to in Article
17.03(1) to particular persons, goods or services of another Party in specific cases that:
(a) Wherever possible, persons of another Party that are directly affected by a
proceeding are provided reasonable notice, in accordance with domestic procedures, when a
proceeding is initiated, including a description of the nature of the proceeding, a statement
of the legal authority under which the proceeding is initiated and a general description of any
issues in controversy;
(b) such persons are afforded a reasonable opportunity to present facts and arguments
in support of their positions prior to any final administrative action, when time, the nature of
the proceeding and the public interest permit; and
(c) its procedures are in accordance with domestic law.
Article 17.07 Review and appeal
1. Each Party shall maintain judicial or administrative tribunals or procedures for the
purpose of the prompt review and, where warranted, correction of final administrative
actions regarding matters covered by this Agreement. Such tribunals shall be impartial and
independent of the office or authority entrusted with administrative enforcement of the law
and shall not have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribunals or proceedings, the parties have
the right to:
(a) A reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions.
3. Each Party shall ensure, subject to appeal or further review as provided in its
domestic law, that such decisions shall be implemented by the offices or authorities.
Article 17.08 Communications and notifications
1. For the purposes of this Agreement, all communications or notifications addressed to

a Party or sent by a Party shall be made through its national Section of the Secretariat,
briefly informing the national Sections of the other Parties of that event.
2. Notwithstanding paragraph 1, where a communication or notification is made under

Chapter 19 (Dispute Settlement), a copy is to be sent to the Central American Economic
Integration Secretariat (Secretaría de Integración Económica Centroamericana) (SIECA) for
its files.
3. Except as otherwise provided, a communication or notification shall be considered
delivered upon its receipt by the national Section of the Party’s Secretariat.
CHAPTER 18. ADMINISTRATION OF THE AGREEMENT
Section A – Commission, Sub-Commission and Secretariat
Article 18.01 Free Trade Commission
1. The Parties hereby establish the Free Trade Commission, comprising the officials
mentioned in Annex 18.01(1) or their designees.
2. The Commission shall:
(a) Supervise compliance with and the adequate implementation of this Agreement;
(b) evaluate the results of the implementation of this Agreement;
(c) resolve disputes that may arise regarding the interpretation or implementation of this
Agreement, as established in Chapter 19 (Dispute Settlement);
(d) supervise the work of all committees established under this Agreement, in
accordance with Annex 18.05(3); and
(e) consider any other matter that may affect the operation of this Agreement and any
other matter referred to it by the Parties.
3. The Commission may:
(a) Establish and delegate responsibilities to committees;
(b) modify in fulfilment of the objectives of this Agreement:
(i) The schedule of products of a Party set out in Annex 3.04(2) (Tariff Elimination
Programme) to include one or more goods that are excluded under that programme;
the dates set out in Annex 3.04(2) (Tariff Elimination Programme) to accelerate tariff
elimination;
the rules of origin established in Annex 4.03 (Specific Rules of Origin);
the Uniform Regulations;
Annex 9.01 (Service Sectors or Subsectors) to incorporate new services sectors or

subsectors;
Annex I, II and III of Chapter 11 (Cross-Border Trade in Services); and
the list of entities of the Parties established in Annex 16.01(Entities) to include one or more
entities in Chapter 16 (Government Procurement);
(c) seek the advice of non-governmental persons or groups;
(d) prepare and approve the regulations needed for implementation of this
Agreement; and
(e) take such other action in the exercise of its functions as the Parties may
agree.
4. The modifications referred to in paragraph 3(b) shall be implemented by the Parties

in accordance with Annex 18.01(4).
5. Notwithstanding paragraph 1, the Commission may meet and take decisions when the
representatives of Chile and one or more Central American countries attend, to deal with
matters of interest to those Parties, such as the acceleration of tariff reduction,
development and expansion of Chapter 10 (Investment) and dispute settlement, provided
the other Parties are notified sufficiently in advance to enable them to participate in the
meeting.
6. The decisions adopted by the Commission pursuant to paragraph 5 shall not apply to
a Party that did not attend the meeting.
7. The Commission shall establish its rules and procedures. All decisions of the
Commission shall be taken by consensus.
8. The Commission shall convene at least once a year, successively in each Party, in
alphabetical order.
Article 18.02 Free Trade Sub-Commission
1. The Parties hereby establish the Free Trade Sub-Commission, comprising the officials
mentioned in Annex 18.02 or their designees.
2. The Free Trade Sub-Commission shall:
(a) Prepare and review the technical files necessary for taking decisions under the
Agreement;
(b) follow up on the decisions of the Commission; and
(c) examine any other matter that could affect the operation of this Agreement referred
by the Commission.
3. The Commission may establish rules and procedures for the adequate operation of
the Free Trade Sub-Commission.
Article 18.03 Secretariat
1. The Commission shall establish and oversee a Secretariat comprising national

Sections.
2. Each Party shall:
(a) Establish a permanent office of its Section;

(b) be responsible for:
(i) The operation and costs of its Section; and
(ii) the remuneration and payment of expenses of panellists, their assistants, and experts
appointed under this Agreement, as set out in Annex 18.03; and
(c) designate an individual to serve as Secretary for its Section, who shall be responsible
for its administration.
3. The Secretariat shall:
(a) Provide assistance to the Commission and the Sub-Commission;
(b) provide administrative assistance to arbitral panels established under

Chapter 19 (Dispute Settlement), in accordance with procedures established pursuant to
Article 19.12 (Model Rules of Procedure);
(c) as the Commission may direct, support the work of other committees, sub-
committees and groups of experts established under this Agreement;
(d) make communications and notifications as provided in Article 17.08

(Communications and Notifications); and
(e) carry out other functions referred by the Commission.
Section B – Committees, Sub-Committees and Groups of Experts
1. The provisions of this section shall apply, complementarily, to all the committees,
sub-committees and groups of experts established under this Agreement.
2. Each committee, sub-committee and group of experts shall be comprised of

representatives of each of the Parties and all decisions shall be taken by consensus.
3. Notwithstanding paragraph 2, a committee, sub-committee or group of experts may

meet and take decisions without all of their members being present when discussing matters
exclusively of interest to Chile and one or more Central American countries, provided that
the representatives of those Parties are present and that the other Parties are notified of
the agenda of the meeting sufficiently in advance.
4. A Party may request in writing that the Commission meet, in accordance with
Article 19.07 (Commission, Good Offices, Conciliation and Mediation), after a committee or
sub-committee has met to hold consultations under Article 19.06 (Consultations) but has
not reached a mutually satisfactory settlement of the dispute. For the purposes of this
paragraph and notwithstanding Article 18.06(2), it shall not be necessary for the sub-
committee to have reported to the respective committee before a Party requests a meeting
of the Commission under Article 19.07 (Commission, Good Offices, Conciliation and
Mediation).
Article 18.05 Committees
1. The Commission may establish committees other than those established in Annex
18.05.
2. Each committee shall:
(a) Monitor implementation of the Chapters of this Agreement in its sphere of

competence;
(b) examine matters submitted to it by a Party which considers that an actual or

proposed measure by another Party affects the effective implementation of a commitment
included in the Chapters of this Agreement, in its sphere of competence;
(c) request technical reports from the competent authorities and take actions that are
necessary to help resolve the matter;
(d) assess and recommend to the Commission proposals for modifications, corrections or
additions to the provisions of the Chapters of this Agreement, in its sphere of competence;
(e) propose to the Commission the revision of actual or proposed measures that a Party
believes could be incompatible with the obligations of this Agreement or cause nullification
or impairment in the sense of Annex 19.03 (Nullification and Impairment); and
(f) perform other tasks referred by the Commission under this Agreement and other
instruments that derive from it.
3. The Commission shall supervise the work of all the committees established pursuant
to this Agreement.
4. Each committee may establish its own rules and procedures and shall meet at the
request of any of the Parties or the Commission.
Article 18.06 Sub-committees
1. To permanently delegate its functions but only for the purposes of specific matters
in its sphere of competence, a committee may establish one or more sub-committees, whose
work it shall supervise. Each sub-committee shall have the same functions as the committee
with respect to the matters referred to it.
2. Each sub-committee shall report to the committee that established it on the

performance of its functions.
3. The rules and procedures of a sub-committee may be established by the same

committee that created it. Sub-committees shall meet at the request of any of the Parties
or the corresponding committee.
Article 18.07 Groups of experts
1. A committee or sub-committee may establish ad hoc groups of experts to conduct

the technical studies necessary for its functions, whose work it shall supervise. Groups of
experts shall strictly perform the tasks referred to them, in the established terms and time
limits. Groups of experts shall report to the committee or sub-committee that established
them.
2. The rules and procedures of a group of experts may be established by the same
committee or sub-committee that created it.
ANNEX 18.01(1)
MEMBERS OF THE FREE TRADE COMMISSION
For the purposes of Article 18.01, the members of the Free Trade Commission are:
(a) For Chile, the Minister of Foreign Relations or his successor;
(b) for Costa Rica, the Minister of Foreign Trade or his successor;
(c) for El Salvador, the Minister of Economic Affairs or his successor;
(d) for Guatemala, the Minister of Economic Affairs or his successor;
(e) for Honduras, the Secretary of State for Industry and Trade or his successor; and
(f) for Nicaragua, the Minister of Development, Industry and Trade or his successor.
ANNEX 18.01(4)
IMPLEMENTATION OF MODIFICATIONS
APPROVED BY THE COMMISSION
The Parties shall implement the decisions of the Commission referred to in

Article 18.01(3)(b) through the following procedure:
(a) For Chile, through Implementation Agreements ("Acuerdos de Ejecución"), in

accordance with Article 50 No. 1, paragraph two, of the Political Constitution of the Republic
of Chile;
(b) for Costa Rica, the agreements reached by the Parties shall be equivalent to the
instrument referred to in Article 121.4, paragraph three, of the Political Constitution of
Republic of Costa Rica;
(c) for El Salvador, as provided in its legislation;
(d) for Guatemala, as provided in its legislation;
(e) for Honduras, as provided in its legislation; and
(f) for Nicaragua, as provided in its legislation.
ANNEX 18.02
MEMBERS OF THE FREE TRADE SUB-COMMISSION
For the purposes of Article 18.02, the members of the Free Trade Sub-Commission
are:
(a) For Chile, the Director General of International Economic Relations of the Ministry of
Foreign Affairs or his successor;
(b) for Costa Rica, a representative of the Ministry of Foreign Trade or his successor;
(c) for El Salvador, the Director of Trade Policy of the Ministry of Economic Affairs or his
successor;
(d) for Guatemala, a representative of the Ministry of Economic Affairs or his successor;
(e) for Honduras, the Director General of Economic Integration and Trade Policy of the
Department of Industry and Trade or his successor; and
(f) for Nicaragua, the Director of Integration and Agreement Administration of the
Ministry of Development, Industry and Trade or his successor.
ANNEX 18.03
REMUNERATION AND PAYMENT OF EXPENSES
1. The Commission shall establish the amounts of remuneration and expenses that will
be paid to the panellists, their assistants and experts.
2. The remuneration of panellists, their assistants and experts, their travel and lodging
expenses, and all general expenses of panels shall be borne equally by the Parties to the
dispute.
3. Each panellist, assistant and expert shall keep a record and render a final account of
the person’s time and expenses, and the panel shall keep a similar record and render a final
account of all general expenses.
ANNEX 18.05
COMMITTEES
Committee on Trade in Goods (Article 3.16)
Committee on Sanitary and Phytosanitary Measures (Article 8.11)
Committee on Standardization, Metrology and Approval Procedures (Article 9.12)
Committee on Investment and Cross-Border Services (Article 11.14)
Committee on Air Transportation (Article 12.04)
Committee on Government Procurement (Article 16.13)
CHAPTER 19. DISPUTE SETTLEMENT
Section A – Dispute Settlement

complaining Party means the Party that lays a complaint, which could be comprised
of one or more Parties;
consulting Party means any Party that makes consultations pursuant to

Article 19.06;
Party complained against means the Party against which a claim is made, which could
be comprised of one or more Parties;
disputing Party means the complaining Party or the Party complained against; and
third Party means a Central American country that has a substantial commercial
interest in the dispute and that is not a Party to the dispute.
The Parties shall at all times endeavour to agree on the interpretation and application
of this Agreement, and shall make every attempt through cooperation and consultations to
arrive at a mutually satisfactory resolution of any matter that might affect its operation.
Except as otherwise provided in this Agreement, the provisions of this Chapter shall
apply:
(a) With respect to the avoidance or settlement of all disputes among the Parties
regarding the application or interpretation of this Agreement; and
(b) wherever a Party considers that an actual or proposed measure of another

Party is or would be inconsistent with the obligations of this Agreement or cause nullification
or impairment in the sense of Annex 19.03.
Article 19.04 Dispute settlement under the understanding
1. Any matter arising under both this Agreement, the WTO Agreement and any
agreement negotiated thereunder may be settled in either forum at the discretion of the
complaining Party.
2. Once a Party has requested the establishment of an arbitral panel under

Article 19.08 or the establishment of a special group under Article 6 of the Understanding,
the forum selected shall be used to the exclusion of any other.
Article 19.05 Cases of urgency
1. In cases of urgency, including those provided for in paragraphs 2 and 3, the disputing
Parties and the arbitral panels shall make every effort to accelerate the proceedings to the
maximum extent possible.
2. For perishable agricultural goods, fish and fish products:

(a) A consulting Party may request in writing that the Commission meet,
provided that the matter is not resolved in accordance with Article 19.06, within 15 days
after the delivery of the request for consultations; and
(b) the Party requesting the intervention of the Commission in accordance with
Article 19.07 may request in writing that an arbitral panel be established in the event that
the matter is not resolved within 15 days after the meeting of the Commission or, if no
meeting was held, within 15 days after the request for a meeting of the Commission was
delivered.
3. In cases of urgency other than those provided for in paragraph 2, the Parties shall, to
the extent possible, endeavour to reduce by half the periods provided for Article 19.07 and
19.08 to request that the Commission meet and that an arbitral panel be established,
respectively.
Article 19.06 Consultations
1. Any Party may request in writing consultations with another Party regarding any
actual or proposed measure or any other matter that it considers might affect the operation
of this Agreement, in terms of Article 19.03.
2. The requesting Party shall deliver copies of the request to the other Parties, which
may participate as consulting Parties, provided they express their substantial commercial
interest in the matter in writing, within 10 days after the request was delivered.
3. The consulting Parties:
(a) Shall provide information to enable an examination of how the actual or proposed
measure or any other matter might affect the operation of this Agreement; and
(b) shall treat any confidential information exchanged in the consultations on the same
basis as the Party providing the information.
Article 19.07 Commission, good offices, conciliation and mediation
1. Any Party to the consultations may request in writing a meeting of the Commission
provided that:
(a) A matter is not resolved pursuant to Article 19.06 within 30 days after the delivery
of the request for consultations; or
(b) the Party to which the request was made did not reply within 10 days after it was
delivered.
2. A Party may also request in writing a meeting of the Commission pursuant to

Article 18.04(4) (General Provisions).
3. The request referred to in paragraph 1 shall state the measure or other matter
complained of and indicate the provisions of this Agreement that it considers relevant.
4. Unless it decides otherwise, the Commission shall convene within 10 days of delivery
of the request and shall endeavour to resolve the dispute promptly. The Commission may
(a) Call on such technical advisers or create such expert groups as it deems necessary;
(b) have recourse to the good offices, conciliation or mediation of a person or group of
persons; or
(c) make such recommendations;
as may assist the Parties to reach a mutually satisfactory resolution of the dispute.
5. Unless it decides otherwise, the Commission shall consolidate two or more

proceedings before it pursuant to this Article regarding the same measure. The Commission
may consolidate two or more proceedings regarding other matters before it pursuant to this
Article that it determines are appropriate to be considered jointly.
Article 19.08 Request for an arbitral panel
1. The Party that has requested intervention by the Commission under Article 19.07
may request in writing the establishment of an arbitral panel where the matter has not been
resolved within:
(a) 30 days after the Commission has convened or, if no meeting took place,
30 days after the delivery of the request for a meeting of the Commission;
(b) 30 days after the Commission has convened, where proceedings have been
consolidated pursuant to Article 19.07(5); or
(c) such other period as the Parties may agree.
2. The Party that requests the establishment of an arbitral panel shall deliver the
request to the Party or Parties complained against and to the other Parties, if any, which
under paragraph 1 are entitled to request the establishment of an arbitral panel. The latter
shall have 10 days after receipt of the request to express their interest in participating in
the arbitration as a complaining Party.
3. Within 15 days after delivery of the request or within 15 days after expiry of the
term referred to in paragraph 2, the disputing Parties shall meet to establish an arbitral
group in accordance with Article 19.11. The meeting shall be held with the Party or Parties
that are present.
4. A Party that is entitled to request the establishment of an arbitral panel under

paragraph 1 and decides to abstain from participating as a complaining Party in terms of
paragraph 2, may only participate as a third Party before the panel, as established in
Article 19.13, provided it expresses its interest in participating within 10 days after receipt
of the request to establish the arbitral panel.
5. Where a Party decides, pursuant to paragraph 4, not to participate as a third Party, it

shall refrain thereafter, in the absence of a significant change in economic or commercial
circumstances, from initiating regarding the same matter:
(a) A dispute settlement procedure under this Chapter; and
(b) a dispute settlement procedure under the Understanding.

6. Unless otherwise agreed by the disputing Parties, the arbitral panel shall be
established and perform its functions in a manner consistent with the provisions of this
Chapter.
Article 19.09 Roster of panellists
1. By agreement, the Parties shall establish a roster of up to 60 individuals, at least five

of whom shall be citizens of each Party and five may not be citizens of any of the Parties,
who are willing and able to serve as panellists.
2. The roster may be modified every three years. Notwithstanding, on the request of a
Party, the Commission may review the roster of panellists before that period has expired.
3. All panellists shall meet shall meet the qualifications set out in Article 19.10(1).
Article 19.10 Qualifications of panellists
1. All the panellists shall:
(a) Have expertise or experience in law, international trade, other matters

covered by this Agreement or the resolution of disputes arising under international trade
agreements;
(b) be chosen strictly on the basis of their objectivity, probity, reliability and
sound judgement;
(c) be independent of, and not be affiliated with or take instructions from, any
Party; and
(d) comply with a code of conduct to be established by the Commission.
2. Individuals may not serve as panellists for a dispute in which they have participated
pursuant to Article 19.07(4).
Article 19.11 Establishment of the arbitral panel
1. The following procedure shall be observed at the meeting to establish the arbitral
panel:
(a) The arbitral panel shall comprise three members;
(b) the disputing Parties shall endeavour to agree on the chair;
(c) where the disputing Parties fail to appoint a chair of the panel, one of them, chosen
by lot, shall appoint the chair. The person designated as chair of the arbitral panel shall be a
member of the Roster referred to in Article 19.09 and shall not be a national of any of the
Parties;
(d) each disputing Party shall select one panellist who is a citizen of the other disputing
Party. Notwithstanding, the disputing Parties, by mutual agreement, may provide that the
arbitral panel be comprised of panellists who are not nationals of any of the Parties; and
(e) where a disputing Party fails to select a member of the panel, such member shall be
selected by lot from among the roster members who are citizens of the other disputing
Party.
2. If a disputing Party is comprised of two or more Central American countries, one of

them, chosen by lot, shall represent the others in the procedure established in paragraph 1.
3. Panellists shall normally be selected from the roster. Any disputing Party may
exercise a peremptory challenge against any individual not on the roster who is proposed as
a panellist by the other disputing Party.
4. If a disputing Party believes that a panellist is in violation of the code of conduct, the
disputing Parties shall consult and, if they agree, the panellist shall be removed and a new
panellist shall be selected in accordance with this Article.
Article 19.12 Model rules of procedure
1. The Commission shall establish Model Rules of Procedure in accordance with the
following principles:
(a) The procedures shall assure a right to a hearing before the arbitral panel as well as
the opportunity to provide initial and rebuttal submissions in writing; and
(b) the arbitral panel’s hearings, deliberations and initial report, and all written
submissions to and communications with the panel shall be confidential.
2. Unless the Parties otherwise agree, the arbitral panel shall conduct its proceedings in
accordance with the Model Rules of Procedure.
3. Unless the disputing Parties otherwise agree, the terms of reference of the arbitral
panel shall be:
"To examine, in the light of the provisions of the Agreement, the matter referred to the
Commission, as set out in the request for a Commission meeting, and to issue the reports
referred to in Articles 19.15 and 19.16".
4. If a complaining Party alleges that a measure has caused nullification or impairment in

the sense of Annex 19.03, the terms of reference shall so indicate.
5. If a disputing Party wishes the arbitral panel to make findings as to the degree of
adverse trade effects caused by a measure adopted by another Party that it judges not to
conform with the obligations of this Agreement or to have caused nullification or impairment
in the sense of Annex 19.03, the terms of reference shall so indicate.
Article 19.13 Third parties
Upon making written notification to the disputing Parties, a third Party shall be entitled to
attend the hearings as provided in the Model Rules of Procedure, to be heard by the panel
and to make written communications to and receive written communications from the panel.
Such communications shall be reflected in the final report of the arbitral panel.
Article 19.14 Information and technical advice

On the request of a disputing Party or on its own motion, the arbitral panel may seek
information and technical advice from any person or body it deems appropriate.
Article 19.15 Initial report
1. Unless the disputing Parties otherwise agree, the arbitral panel shall issue an initial
report based on the submissions and arguments of the Parties and on any information before
it pursuant to Articles 19.13 and 19.14.
2. Unless the disputing Parties otherwise agree, the arbitral panel shall, within 90 days
after the meeting to establish the panel, present to the Parties an initial report containing:
(a) Findings of fact, including any findings pursuant to a request under

Article 19.12(5);
(b) its determination as to whether the measure at issue is or would be

inconsistent with the obligations of this Agreement or cause nullification or impairment in
the sense of Annex 19.03, or any other determination requested in the terms of reference;
and
(c) its recommendations, if any, for resolution of the dispute.
3. Panellists may furnish separate opinions on matters not unanimously agreed.
4. A Party may submit written comments to the arbitral panel on its initial report within
14 days of presentation of the report.
5. In such an event, and after considering such written comments, the panel, on its own
motion or on the request of a disputing Party, may:
(a) Make any further examination that it considers appropriate; and
(b) reconsider its initial report.
Article 19.16 Final report
1. The arbitral panel shall communicate to the disputing Parties its final report, including
any separate opinions on matters not unanimously agreed, within 30 days of presentation of
the initial report, unless the disputing Parties otherwise agree.
2. No arbitral panel may, either in its initial report or its final report, disclose which
panellists are associated with majority or minority opinions.
3. Unless the Parties otherwise agree, the final report shall be published 15 days after it
is communicated to the disputing Parties.
Article 19.17 Implementation of final reports
1. The final report shall be binding on the disputing Parties in the terms and time
periods that the report orders. The time period for implementing the final report shall not
exceed six months, calculated from the date on which the last of the disputing Parties has
been notified of the final report, unless they agree on a different period.
2. Where a final report by an abitral panel finds that the measure is non-conforming with
this Agreement, the Party complained against shall not implement the measure or shall
revoke it.
3. Where the final report of the arbitral panel determines that the measure is cause for
nullification or impairment in the sense of Annex 19.03, it shall determine the level of
nullification or impairment and may suggest adjustments it considers mutually satisfactory
for the disputing Parties.
Article 19.18 Suspension of benefits
1. Unless the disputing Parties have notified the Commission within ten days after the
expiry of the period established the final report that the report has been implemented to
their satisfaction, the arbitral panel shall determine whether the Party complained against
has implemented said report.
2. The complaining Party may suspend application of benefits under this Agreement of
equivalent effect to the Party complained against if the arbitral panel determines:
(a) That a measure is inconsistent with the obligations of this Agreement and the
Party complained against fails to comply with the final report within the period that the
arbitral panel has established; or
(b) that a measure is the cause of nullification or impairment in the sense of

Annex 19.03 and the disputing Parties are unable to reach a mutually satisfactory
settlement of the dispute within the period that the panel has established.
3. Benefits shall be suspended until such time as the Party complained against complies
with the final report or until the Parties reach a mutually satisfactory settlement of the
dispute. However, if the Party complained against is comprised of two or more Parties and
one of them complies with the final report or reaches a mutually satisfactory agreement with
the complaining Party, it shall lift the suspension of benefits with respect to that Party.
4. In considering what benefits to suspend under this Article:
(a) The complaining Party shall first seek to suspend benefits in the same sector
or sectors as that affected by the measure or other matter that the arbitral panel has found
to be inconsistent with the obligations of this Agreement or to have caused nullification or
impairment in the sense of Annex 19.03; and
(b) if the complaining Party considers that it is not practicable or effective to

suspend benefits in the same sector or sectors, it may suspend benefits in other sectors.
5. After benefits have been suspended in accordance with this Article, on the written
request of a disputing Party an arbitral panel shall be established to determine whether there
is compliance with the final report or whether the level of benefits suspended by the
complaining Party pursuant to this Article is manifestly excessive. Where possible, the
original arbitral panel shall be reconvened for this purpose.
6. The proceedings of the arbitral panel established for the purposes of paragraph 5
shall be conducted in accordance with the Model Rules of Procedure provided for in
Article 19.12. The panel shall present its final report within sixty days after the meeting to
establish the panel or other such period as the disputing Parties may agree. If the arbitral
panel has been established with the same members that heard the dispute, it shall present
its final report within 30 days of the presentation of the request referred to in paragraph 5.
Section B – Domestic Proceedings and Private Commercial Dispute Settlement
Article 19.19 Interpretation of the agreement in judicial or administrative proceedings
1. The Commission shall endeavour to agree on an appropriate non-binding response as

expeditiously as possible where:
(a) A Party requests the Commission’s opinion on a matter of interpretation or

application of this Agreement arising from a judicial or administrative proceeding of another
Party; or
(b) a Party notifies it of the receipt of a request for an opinion on a matter of

interpretation or application of this Agreement in a judicial or administrative proceeding of
that Party.
2. The Party in whose territory the judicial or administrative body is located shall submit
the interpretation or response of the Commission to the judicial or administrative body in
accordance with the rules of that body.
3. If the Commission is unable to agree on an interpretation, any of the Parties may

submit its own views to the judicial or administrative body in accordance with the rules of
that body.
Article 19.20 Private rights
No Party may provide for a right of action under its domestic law against another
Party on the ground that a measure of the other Party is inconsistent with this Agreement.
Article 19.21 Alternative dispute resolution between private parties
1. Each Party shall encourage and facilitate the use of arbitration and other means of
alternative dispute resolution for the settlement of international commercial disputes
between private parties in the free trade area.
2. To that end, each Party shall provide appropriate procedures to ensure observance of
international arbitration conventions it has ratified and the recognition and enforcement of
arbitral awards in such disputes.
3. The Commission shall establish an Advisory Committee on Private Commercial

Disputes, comprising persons with expertise or experience in the resolution of private
international commercial disputes. The Committee shall report and provide general
recommendations to the Commission on the availability, use and effectiveness of arbitration
and other procedures for the resolution of such disputes.
ANNEX 19.03
NULLIFICATION AND IMPAIRMENT
1. If a Party considers that any benefit it could reasonably have expected to accrue to it
under any provision of:
(a) Part Two (Trade in Goods);
(b) Part Three (Technical Barriers to Trade);
(c) Chapter 11 (Cross-Border Trade in Services); or
(d) Chapter 12 (Air Transportation);
is being nullified or impaired as a result of the application of any measure that is not
inconsistent with this Agreement, the Party may have recourse to dispute settlement under
this Chapter.
2. A Party may not invoke:
(a) Paragraph 1(a) or (b), to the extent that the benefit arises from any cross-
border trade in services provision of Part Two (Trade in Goods) or Three (Technical
Standards); or
(b) paragraph 1(c);
with respect to any measure subject to an exception under Article 20.02 (General
Exceptions).
3. To determine the elements of nullification or impairment, the Parties may take into
account the principles deriving from case law on Article XXIII, paragraph 1(b), of the GATT
1994.
CHAPTER 20. EXCEPTIONS
international capital transactions means "international capital transactions" as

defined under the Articles of Agreement of the International Monetary Fund;
Fund means the International Monetary Fund;
payments for current international transactions means "payments for current

international transactions" as defined under the Articles of Agreement of the International
Monetary Fund;
tax convention means a convention for the avoidance of double taxation or other
international taxation agreement or arrangement; and
transfers mean international transactions and transfers and related payments.
Article 20.02 General exceptions
1. Article XX of the GATT 1994 and its interpretative notes are incorporated into and
made part of this Agreement for the purposes of:
(a) Part Two (Trade in Goods), except to the extent that a provision of that Part applies
to services or investment;
(b) Part Three (Technical Barriers to Trade), except to the extent that a provision of that
Part applies to services or investment;
(c) Chapter 15 (Competition Policy), except to the extent that a provision of that
Chapter applies to goods; and
(d) Chapter 16 (Government Procurement), except to the extent that a provision of that
Chapter applies to goods.
2. Article XIV (a), (b) and (c) of GATS is incorporated into and made part of this
Agreement for the purposes of:
(a) Part Two (Trade in Goods), to the extent that a provision of that Part applies to
services;
(b) Part Three (Technical Barriers to Trade);
(c) Chapter 11 (Cross-Border Trade in Services);
(d) Chapter 12 (Air Transportation);
(e) Chapter 13 (Telecommunications);
(f) Chapter 14 (Temporary Entry of Business Persons);
(g) Chapter 15 (Competition Policy), to the extent that a provision of that Chapter
applies to services; and
(h) Chapter 16 (Government Procurement), to the extent that a provision of that

Chapter applies to services.
Article 20.03 National security
Nothing in this Agreement shall be construed:
(a) To require a Party to furnish or allow access to any information the disclosure of
which it determines to be contrary to its essential security interests;
(b) to prevent a Party from taking any actions that it considers necessary for the
protection of its essential security interests:
(i) Relating to the traffic in arms, ammunition and implements of war and to such traffic
and transactions in other goods, materials, services and technology undertaken directly or
indirectly for the purpose of supplying a military or other security establishment;
(ii) taken in time of war or other cases of serious international tension; or
(iii) relating to the implementation of national policies or international agreements

respecting the non-proliferation of nuclear weapons or other nuclear explosive devices; or
(c) to prevent a Party from taking action in pursuance of its obligations under the United
Nations Charter for the maintenance of international peace and security.
Article 20.04 Balance of payments
1. Nothing in this Agreement shall be construed to prevent a Party from adopting or

maintaining measures that restrict transfers where the Party experiences serious balance of
payments difficulties, or the threat thereof, and such restrictions are consistent with this
Article.
2. As soon as practicable after a Party imposes a measure under this Article, in

accordance with its international obligations, the Party shall:
(a) Submit any restrictions on current account operations to the Fund for review
under Article VIII of the Articles of Agreement of the International Monetary Fund;
(b) enter into good faith consultations with the Fund on economic adjustment measures
to address the fundamental underlying economic problems causing the difficulties; and
(c) adopt or maintain economic policies consistent with such consultations.
3. A measure adopted or maintained under this Article shall:
(a) Avoid unnecessary damage to the commercial, economic or financial interests

of another Party;
(b) not be more burdensome than necessary to deal with the balance of payments
difficulties or threat thereof;
(c) be temporary and be phased out progressively as the balance of payments situation
improves;
(d) be consistent with paragraph 2(c) and with the Articles of Agreement of the
International Monetary Fund; and
(e) be applied on a national treatment or most-favoured-nation treatment basis,

whichever is better.
4. A Party may adopt or maintain a measure under this Article that gives priority to
services that are essential to its economic programme, provided that the Party does not
impose a measure for the purpose of protecting a specific industry or sector, unless the
measure is consistent with paragraph 2(c) and with Article VIII(3) of the Articles of
Agreement of the International Monetary Fund.
5. Restrictions imposed on transfers:
(a) Where imposed on payments for current international transactions, shall be

consistent with Article VIII(3) of the Articles of Agreement of the International Monetary
Fund;
(b) where imposed on international capital transactions, shall be consistent with
Article VI of the Articles of Agreement of the International Monetary Fund and be imposed
only in conjunction with measures imposed on current international transactions under
paragraph 2(a); and
(c) may not take the form of tariff surcharges, quotas, licences or similar measures.
Article 20.05 Exceptions to the disclosure of information
Nothing in this Agreement shall be construed to require a Party to furnish or allow

access to information the disclosure of which would impede compliance with or be contrary
to its Constitution or laws protecting personal privacy or the financial affairs and bank
accounts of individual customers of financial institutions.
Article 20.06 Taxation
1. Except as set out in this Article and Article 20.06, nothing in this Agreement shall
apply to taxation measures.
2. Nothing in this Agreement shall affect the rights and obligations of any Party under
any tax convention. In the event of any inconsistency between this Agreement and any such
convention, that convention shall prevail to the extent of the inconsistency.
3. Notwithstanding paragraph 2:
(a) Article 3.03 (National Treatment) and such other provisions of this
Agreement as are necessary to give effect to that Article shall apply to taxation measures to
the same extent as does Article III of the GATT 1994; and
(b) Article 3.14 (Export Taxes) shall apply to taxation measures.
4. For the purposes of this Article, tax measures do not include:
(a) A "customs duty" as defined in Article 2.01 (Definitions of General

Application); or
(b) the measures listed in exceptions (b), (c) and (d) of that definition.
ANNEX 20.06
DOUBLE TAXATION
1. The Parties endeavour to conclude bilateral agreements to avoid double taxation

within a reasonable time after the date that this Agreement enters into force.
2. The Parties agree that upon conclusion of a bilateral agreement to avoid double
taxation, they shall exchange letters setting out the relationship between the bilateral
agreement and Article 20.06.
CHAPTER 21. FINAL PROVISIONS
Article 21.01 Amendments

1. Notwithstanding Articles 18.01(5) (Free Trade Commission) and 21.03(2), the
Parties may agree on any modification of this Agreement.
2. When so agreed and approved in accordance with the applicable legal procedures of
each Party, a modification shall enter into force and constitute an integral part of this
Agreement.
Article 21.02 Reservations
This Agreement shall not be subject to reservations or interpretative statements on

the occasion of its ratification.
Article 21.03 Duration and entry into force
1. This Agreement shall have an indefinite duration and shall enter into force in Chile and
each Central American Country on the thirtieth day after the date on which they have
exchanged their instruments of ratification certifying the completion of the necessary legal
procedures and formalities.
2 For this Agreement to become operative between Chile and each Central American
country, the instruments of ratification shall state that the legal procedures and formalities
have concluded with respect to a bilateral protocol that:
(a) Contains Annex 3.04(2) (Tariff Elimination Programme), relating to the Tariff
Elimination Programme between Chile and that Central American country;
(b) contains Section C of Annex 4.03 (Specific Rules of Origin), applicable between Chile
and that Central American country;
(c) contains Annexes I, II and III of Chapter 11 (Cross-Border Trade in Services), relating
to the reservations and restrictions on cross-border services applicable between Chile and
that Central American country;
(d) contains Annexes 3.08 (Customs Valuation), 3.10(6) (Import and Export
Restrictions) and 16.01 (Entities), where pertinent; and
(e) refers to other matters agreed upon by the Parties.
3. The protocols signed under paragraph 2 shall constitute an integral part of this
Agreement.
Article 21.04 Annexes
The Annexes to this Agreement constitute an integral part of this Agreement.
Article 21.05 Withdrawal
1. Any Party may withdraw from this Agreement. Provided that Chile is not the Party
that withdraws, the Agreement shall remain in force for the remaining Parties.
2. Withdrawal shall become effective 180 days after the other Parties are notified,
unless the Parties agree to a different period.
ANNEX I
1. The Schedule of a Party sets out, pursuant to Article 11.08(1) (Reservations), the
reservations taken by that Party with respect to existing measures that do not conform with
obligations imposed by:
(a) Article 11.03 (National Treatment);
(b) Article 11.04 (Most-Favoured-Nation Treatment); or
(c) Article 11.06 (Local Presence),
and, in certain cases, sets out commitments for immediate or future liberalization.
2. Each reservation sets out the following elements:
(a) Sector refers to the general sector in which the reservation is taken;
(b) subsector refers to the specific sector in which the reservation is taken;
(c) CPC means Central Product Classification (CPC) numbers as set out in Statistical
Office of the United Nations, Statistical Papers, Series M, No. 77, Provisional Central Product
Classification, 1991. The Central Product Classification is used for the purposes of reference
only;
(d) type of reservation specifies the obligation referred to in paragraph 1 for which a
reservation is taken;
(e) measures identifies the laws, regulations or other measures, as qualified, where
indicated, by the description element, for which the reservation is taken. A measure cited in
the measures element:
(i) Means the measure as amended, continued or renewed as of the date of entry into
force of this Agreement; and
(ii) includes any subordinate measure adopted or maintained under the authority of and
consistent with the measure;
(f) description sets out commitments, if any, for liberalization on the date of entry into
force of this Agreement, and the remaining non-conforming aspects of the existing measures
for which the reservation is taken; and
(g) phase-out sets out commitments, if any, for liberalization after the date of entry into
force of this Agreement.
3. In the interpretation of a reservation, all elements of the reservation shall be

considered. A reservation shall be interpreted in the light of the relevant provisions of the
Chapters against which the reservation is taken. To the extent that:
(a) The phase-out element provides for the phasing out of non-conforming
aspects of measures, it shall prevail over all other elements;
(b) the measures element is qualified by a liberalization commitment from the
description element, the measures element as so qualified shall prevail over all other
elements; and
(c) the measures element is not so qualified, the measures element shall prevail
over all other elements, unless any discrepancy between the measures element and the
other elements considered in their totality is so substantial and material that it would be
unreasonable to conclude that the measures element should prevail, in which case the other
elements shall prevail to the extent of that discrepancy.
ANNEX II
1. The Schedule of a Party sets out, pursuant to Article 11.08(2) (Reservations), the
reservations taken by that Party with respect to specific sectors, sub-sectors or activities
for which it may maintain existing, or adopt new or more restrictive, measures that do not
conform with obligations imposed by:
(a) Article 11.03 (National Treatment);
(b) Article 11.04 (Most-Favoured-Nation Treatment); or
(c) Article 11.06 (Local Presence).
only;
(d) type of reservation specifies the obligation referred to in paragraph 1 for which a
reservation is taken;
(e) description sets out the scope of the sector, sub-sector or activities covered by the
reservation; and
(f) existing measures identifies, for transparency purposes, existing measures that apply
to the sector, sub-sector or activities covered by the reservation.
3. In the interpretation of a reservation, all elements of the reservation shall be

considered. The description element shall prevail over all other elements.
ANNEX III
1. The Schedule of a Party sets out the non-discriminatory quantitative restrictions
maintained by that Party pursuant to Article 11.09 (Non-Discriminatory Quantitative
Restrictions).
only;
(d) measures identifies the measures under which the quantitative restriction is
maintained; and
(e) description sets out the scope of the sector, sub-sector or activities covered by the
quantitative restriction.
BILATERAL PROTOCOL TO THE FREE TRADE AGREEMENT
BETWEEN CENTRAL AMERICA AND CHILE
The Governments of the Republic of Costa Rica and the Republic of Chile:
Considering the provisions of Article 21.03 (Entry into Force) of the Free Trade
Agreement between Central America and Chile, signed on 18 October of this year in
Guatemala City;
Have determined to sign this Bilateral Protocol to the Free Trade Agreement between
Central America and Chile, whereby they incorporate the following Annexes into the
Agreement, which constitute an integral part thereof:2
(a) Annex 3.04(2) (Tariff Elimination Programme);
(b) Annex 3.09 (Export Subsidies on Agricultural Goods);
(c) Annex 4.03 (Specific Rules of Origin), Section C (Specific Rules of Origin between
Chile and Costa Rica); and
(d) Annexes I, II and III of Chapter 11 (Cross-Border Trade in Services).
In witness whereof, we sign this Protocol in two originals, each of which is equally
authentic, in Guatemala City on 18 October 1999.
Miguel Ángel Rodríguez Echeverría Eduardo Frei Ruiz-Tagle

President of the Republic of President of the Republic of
Costa Rica Chile
2
See the footnote on page 1.
ANNEX 3.04(2)
TARIFF ELIMINATION PROGRAMME
1. Notwithstanding Article 3.09 and until 31 December 2002 or such time as the
Simplified Duty Drawback System for Chilean Exporters, established in Law 18.480, is made
to conform with the obligations of the Agreement on Subsidies and Countervailing Measures
that is part of the WTO Agreement, the goods benefiting from this mechanism shall be
ineligible to benefit from the Tariff Elimination Programme upon their export to Costa Rica.
2. Chile shall notify Costa Rica each year of its schedule of goods that are not subject
to the Simplified Duty Drawback System for Exporters.
3. For the purposes of paragraph 1, exporters who avail themselves of the Tariff
Elimination Programme shall expressly state in the certificate of origin established in
Article 5.02 (Declaration and Certification of Origin) that they renounce the benefits of the
Simplified Duty Drawback System for Exporters for that particular export to Costa Rica and
that they have not and will not apply for a drawback under that system for that export.
4. The legal effects of giving false or incorrect information regarding the stipulations of
paragraph 3 in the certificate of origin shall be the same as those applicable to situations in
which the certificate of origin contains false or incorrect information regarding the origin of a
given good. The importing Party shall have the authority to supervise effective compliance
with paragraphs 1 through 3, in accordance with Chapter 5 (Customs Procedures).
Costa Rica’s Schedule
1. Notwithstanding the provisions of this Annex, the used goods listed below are not
eligible for the Tariff Elimination Programme, under the Central American Tariff System, as
amended by the 1996 Harmonized System:

Subheading 4012.10 Retreaded rubber tires
Subheading 4012.20 Used rubber tires
Heading 63.05 Sacks and bags used for packing and other used
containers
Heading 63.09 Clothing and textile articles, made up articles and
footwear
Heading 63.10 Rags, twine, rope and cordage in scrap or worn out
articles of textile materials
Heading 87.02 Motor vehicles for the transport of ten or more
persons, including the driver
Heading 87.03 Motor cars and other motor vehicles principally
designed for the transport of persons (other than
those of heading 87.02), including station wagons and
racing cars
Heading 87.05 Special purpose motor vehicles, other than those
principally designed for the transport of persons or
goods (for example, wagons, service trucks, mobile
cranes, fire fighting vehicles, concrete mixers, road
sweepers, spraying vehicles, mobile workshops, mobile
radiological units)
Heading 87.06 Chassis fitted with engines, for the motor vehicles of
headings 87.01 to 87.05
Heading 87.07 Bodies (including cabs) for the motor vehicles of
headings 87.01 to 87.05
Heading 87.11 Motorcycles (including mopeds) and cycles fitted with
an auxiliary motor, with or without side-cars
2. Costa Rica shall apply, in the terms specified in its Schedule, the following staging
categories and subcategories to originating goods exported from Chile in accordance with
Article 3.04 (Tariff Elimination) and 4.03 (Originating Goods):
(a) Category A: The duties on originating goods provided for in the tariff items in this
staging category shall be eliminated entirely when this Agreement comes into force;
(b) Category B: The duties on originating goods provided for in the tariff items in this
staging category shall be eliminated in five stages and be duty free effective 1 January
2004. For the purposes of this elimination, three subcategories are established, each
consisting of the letter B, followed by the base rate of duty from which the linear reduction
begins. The duties on these subcategories shall be eliminated as follows:
Date Subcategory by base rate
B-5 B-10 B-15
Entry into effect 4.0% 8.0% 12.0%
1 January 2001 3.0% 6.0% 9.0%
1 January 2002 2.0% 4.0% 6.0%
1 January 2003 1.0% 2.0% 3.0%
As of 1 January 2004 0.0% 0.0% 0.0%
(c) Category C: The duties on originating goods provided for in the tariff items in this
staging category shall be eliminated in 12 stages and be duty free effective 1 January 2011.
For the purposes of this elimination, six subcategories are established, each consisting of the
letter C, followed by the base rate of duty from which the linear reduction begins. The duties
on these subcategories shall be eliminated as follows:

C-10 C-15 C-37 C-41 C-89 C-101
Entry into effect 9.2% 13.8% 33.9% 37.6% 81.6% 92.6%
1 January 2001 8.3% 12.5% 30.8% 34.2% 74.2% 84.2%
1 January 2002 7.5% 11.3% 27.8% 30.8% 66.8% 75.8%
1 January 2003 6.7% 10.0% 34.7% 27.3% 59.3% 67.3%
1 January 2004 5.8% 8.8% 21.6% 23.9% 51.9% 58.9%
1 January 2005 5.0% 7.5% 18.5% 20.5% 44.5% 50.5%
1 January 2006 4.2% 6.3% 15.4% 17.1% 37.1% 42.1%
1 January 2007 3.3% 5.0% 12.3% 13.7% 29.7% 33.7%
1 January 2008 2.5% 3.8% 9.3% 10.3% 22.3% 25.3%
1 January 2009 1.7% 2.5% 6.2% 6.8% 14.8% 16.8%
1 January 2010 0.8% 1.3% 3.1% 3.4% 7.4% 8.4%
As of 1 January 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
2011
For natural honey, item 0409.00.00, Costa Rica shall grant Chile a duty free annual quota of
100 metric tonnes. The duty on imports of non-quota originating natural honey shall be the
duty for subcategory C-15. Application of this quota shall cease when the tariff for this item
has reached 0%.
(d) Category D: The duties on originating goods provided for in the tariff items in this
For the purposes of this elimination, five subcategories are established, each consisting of
the letter D, followed by the base rate of duty from which the linear reduction begins. The
duties on these subcategories shall be eliminated as follows:

D-10 D-15 D-36 D-46 D-51
Entry into effect 9.4% 14.1% 33.8% 43.1% 47.8%
1 January 2001 8.8% 13.1% 31.5% 40.3% 44.6%
1 January 2002 8.1% 12.2% 29.3% 37.4% 41.4%
1 January 2003 7.5% 11.3% 27.0% 34.5% 38.3%
1 January 2004 6.9% 10.3% 24.8% 31.6% 35.1%
1 January 2005 6.3% 9.4% 22.5% 28.8% 31.9%
1 January 2006 5.6% 8.4% 20.3% 25.9% 28.7%
1 January 2007 5.0% 7.5% 18.0% 23.0% 25.5%
1 January 2008 4.4% 6.6% 15.8% 20.1% 22.3%
1 January 2009 3.8% 5.6% 13.5% 17.3% 19.1%
1 January 2010 3.1% 4.7% 11.3% 14.4% 15.9%
1 January 2011 2.5% 3.8% 9.0% 11.5% 12.8%
1 January 2012 1.9% 2.8% 6.8% 8.6% 9.6%
1 January 2013 1.3% 1.9% 4.5% 5.8% 6.4%
1 January 2014 0.6% 0.9% 2.3% 2.9% 3.2%
As of 1 January 0.0% 0.0% 0.0% 0.0% 0.0%
2015
(e) Category TC: The duties on originating goods in the tariff items in this category shall
be eliminated as follows:
Date Category TC
1 January 2006 4.90%

1 January 2007 4.0%
1 January 2008 3.0%
1 January 2009 1.9%
1 January 2010 1.0%
As of 1 January 2011 0.0%
Costa Rica shall grant Chile a preferential quota for the originating goods included in this
category, in accordance with the following timetable:
Date Combined quota for items in Tariff applied to the quota

Category TC
Entry into effect 500 TM 6.3%
1 January 2001 833 TM 5.3%
1 January 2002 1.166 TM 4.4%
1 January 2003 1.499 TM 3.6%
1 January 2004 1.832 TM 3.4%
1 January 2005 2.165 TM 3.3%
From 1 January 2006 to 2.500 TM 3.0%
1 January 2008
(f) Category EXCL: The tariff items in this category are excluded from the Tariff
Elimination Programme and therefore Costa Rica may maintain duties on the originating
goods in this category.
Chile’s Schedule
2. Costa Rica shall apply, in the terms specified in its Schedule, the following staging
categories and subcategories to originating goods exported from Chile in accordance with
Article 3.04 (Tariff Elimination) and 4.03 (Originating Goods):
(a) Category A: The duties on originating goods provided for in the tariff items in this
staging category shall be eliminated entirely when this Agreement comes into force;
(b) Category B: The duties on originating goods provided for in the tariff items in this
staging category shall be eliminated in five stages and be duty free effective 1 January
2004. The duties on these subcategories shall be eliminated as follows:
Date Category B
Entry into effect 7.2%
1 January 2001 4.8%
1 January 2002 2.8%
1 January 2003 1.2%
(c) Category C: The duties on originating goods provided for in the tariff items in this
The duties on these subcategories shall be eliminated as follows:
Date Category C

1 January 2001 6.7%
1 January 2002 5.3%
1 January 2003 4.0%
1 January 2004 3.5%
1 January 2005 3.0%
1 January 2006 2.5%
1 January 2007 2.0%
1 January 2008 1.5%
1 January 2009 1.0%
1 January 2010 0.5%
As of 1 January 2011 0.0%.
(d) Category D: The duties on originating goods provided for in the tariff items in this
The duties on these subcategories shall be eliminated as follows:
Date Category D

1 January 2001 7.0%
1 January 2002 5.7%
1 January 2003 4.5%
1 January 2004 4.1%
1 January 2005 3.8%
1 January 2006 3.4%
1 January 2007 3.0%
1 January 2008 2.6%
1 January 2009 2.3%
1 January 2010 1.9%
1 January 2011 1.5%
1 January 2012 1.1%
1 January 2013 0.8%
1 January 2014 0.4%
(e) Category TP: The duties on originating goods in the tariff items in this category shall
Duties on goods in tariff items 2709.00.00 and 2711.11.00 shall be eliminated entirely on 1
January 2004 according to the following timetable:
Date Category TP

1 January 2001 1.8%
1 January 2002 1.1%
1 January 2003 0.4%
duties on goods in tariff items 2710.00.10, 2710.00.21, 2710.00.29, 2710.00.31,

2710.00.32, 2710.00.33, 2710.00.40, 2710.00.51, 2710.00.59, 2710.00.61,
2710.00.62, 2710.00.63, 2710.00.64, 2711.11.00, 2711.12.00 and 2711.13.00 shall be
eliminated entirely on 1 January 2006 according to the following timetable:
Date Category TP

1 January 2001 4.0%
1 January 2002 2.8%
1 January 2003 1.8%
1 January 2004 1.2%
1 January 2005 0.6%
(f) Category TC: The duties on originating goods in the tariff items in this category shall
Date Category TC
1 January 2006 4.9%

1 January 2007 4.0%
1 January 2008 3.0%
1 January 2009 1.9%
1 January 2010 1.0%
Chile grants Costa Rica a preferential quota on originating goods in this category, in
accordance with the following timetable:
Date Combined quota for items in Tariff applied to the quota

Category TC
Entry into effect 500 TM 6.3%
1 January 2001 833 TM 5.3%
1 January 2002 1.166 TM 4.4%
1 January 2003 1.499 TM 3.6%
1 January 2004 1.832 TM 3.4%
1 January 2005 2.165 TM 3.3%
From 1 January 2006 to 2.500 TM 3.0%
1 January 2008
(g) Category EXCL: The tariff items in this category are excluded from the Tariff
Elimination Programme and therefore Chile may maintain duties on the originating goods in
this category.
ANNEX 3.09
EXPORT SUBSIDIES ON AGRICULTURAL GOODS
1. Chile and Costa Rica share the objective of multilateral elimination of export subsidies
on agricultural goods. To that end, they shall cooperate in the efforts to reach an agreement
under the frame of the WTO Agreement.
2. Chile and Costa Rica shall not maintain or introduce export subsidies on agricultural
goods in their mutual trade after this Agreement comes into effect, without detriment to
Chile’s rights under the Agreement on Subsidies and Countervailing Measures that is part of
the WTO Agreement, referring to the Simplified Duty Drawback System for Exporters
established in Law 18.480. For the purposes of this Agreement, use of this mechanism in
their mutual trade shall be regulated by the provisions of Annex 3.04(2).
__________

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FREE TRADE AGREEMENT BETWEEN CHILE AND COSTA RICA

TABLE OF CONTENTS Page

FREE TRADE AGREEMENT BETWEEN THE GOVERNMENTS OF CENTRAL

The Governments of the Republics of Chile, Costa Rica, El Salvador, Guatemala,

Contribute to hemispheric integration;

Achieve a better balance in their trade relations;

Avoid distortions to their mutual trade;

Enhance the competitiveness of their firms in global markets;

Promote economic development in a manner consistent with environmental

Preserve their capacity to safeguard the public welfare; and

Promote dynamic participation by the different economic agents, particularly the

Enter into the following Free Trade Agreement:

Article 1.01 Establishment of the free trade area

Article 1.02 Objectives

1. The objectives of this Agreement are to:

(a) Further develop the free trade zone;

(c) promote conditions of fair competition in the free trade area;

promote, protect and substantially increase investments in each Party; and

Article 1.03 Observance

Article 1.04 Relation to other international agreements

(c) the Basel Convention on the Control of Transboundary Movements of Hazardous

Article 1.05 Successor agreements

All references to any other international agreement shall be understood to be made

CHAPTER 2. GENERAL DEFINITIONS

Article 2.01 Definitions of general application

For purposes of this Agreement, unless otherwise specified:

Central American country means a country of Central America;

chapter means the first two digits in Harmonized System;

(b) anti-dumping or countervailing duty that is applied pursuant to a Party’s domestic

Customs Valuation Agreement means the Agreement on Implementation of Article VII

days means calendar days;

goods means any material, matter, product or part;

Harmonized system means the Harmonized Commodity Description and Coding

heading means the first four digits in the Harmonized System;

measure includes any law, regulation, provision or practice;

national means a natural person of a Party as established in Annex 2.01;

person means a natural person or an enterprise;

person of a Party means a national or an enterprise of a Party;

State enterprise means an enterprise that is owned or controlled through ownership

subheading means the first six digits in the Harmonized System;

Tariff Elimination Programme means the programme established in Annex 3.04(2)

Understanding means that Understanding on Rules and Procedures Governing the

Uniform Regulations means the regulations established pursuant to Article 5.12

For purposes of this Agreement, unless otherwise specified:

(a) With respect to Chile:

(ii) a person who is a permanent resident under Chilean law;

(b) with respect to Costa Rica:

(ii) a Costa Rican by naturalization in accordance with Article 14 of the Political

(iii) a person who is a permanent resident under Costa Rican law;

(c) with respect to El Salvador:

(i) A Salvadoran by birth as defined in Article 90 of the Constitution;

(ii) a Salvadoran by naturalization as defined in Article 92 of the Constitution; and

(d) with respect to Guatemala:

(iii) a person who obtains naturalization under the law;

(e) with respect to Honduras:

(i) A Honduran by birth as defined in Article 23 of the Constitution of the Republic of

(ii) a Honduran by naturalization as defined in Article 24 of the Constitution of the

(f) with respect to Nicaragua, a Nicaraguan as determined in Article 15 of the Political

Section A – Definitions, Scope and Coverage