Korea-Australia Free Trade Agreement

Chapter 12: Government Procurement

Article 12.1: Scope

Application of Chapter

  1. This Chapter shall apply to any measure regarding covered procurement.
  2. For the purposes of this Chapter, "covered procurement" means a government procurement of goods, services or both:
    1. by any contractual means, including purchase, rental, hire purchase, or lease, with or without an option to buy, build-operate-transfer contracts and public works concessions contracts;
    2. for which the value, as estimated in accordance with this Article, equals or exceeds the relevant threshold specified in Annex 12-A;
    3. that is conducted by a procuring entity;
    4. that is not excluded from coverage by this Chapter; and
    5. subject to the conditions specified in Annex 12-A.
  3. This Chapter shall not apply to:
    1. procurement of goods and services by a procuring entity of a party from another entity of that party, or between a procuring entity of a party and a regional or local government of that party;
    2. non-contractual agreements or any form of assistance that a party provides, including grants, loans, equity infusions, fiscal incentives, subsidies, guarantees, and cooperative agreements;
    3. procurement for the direct purpose of providing foreign assistance;
    4. procurement of research and development services;
    5. procurement of goods and services outside the territory of the procuring party, for consumption outside the territory of the procuring party;
    6. public employment contracts;
    7. procurement conducted under the particular procedures or conditions of an international agreement relating to the stationing of troops or relating to the joint implementation by the signatory countries of a project, or under the particular procedures or conditions of an international organisation, or funded by international grants, loans, or other assistance to the extent that the provision of such assistance is subject to conditions inconsistent with this Chapter;
    8. procurement funded by grants or sponsorship payments received from a person other than a procuring entity of a Party;
    9. the acquisition or rental of land, buildings, or other immovable property or rights thereon where not part of an arrangement for procurement of construction services;
    10. procurement of financial advisory and asset management services pertaining to reserves held by each Party, including for the purposes of funding retirement benefits; or
    11. the procurement or acquisition of fiscal agency or depository services, liquidation and management services for regulated financial institutions, or services related to the sale, redemption and distribution of public debt, including loans and government bonds, notes, derivatives and other securities.

Valuation of Contracts

  1. In estimating the value of a procurement for the purposes of ascertaining whether it is a covered procurement, a procuring entity shall:
    1. take into account all forms of remuneration, including any premiums, fees, commissions, interest, other revenue streams that may be provided for in the procurement and, where the procurement provides for the possibility of option clauses, the maximum total value of the procurement, inclusive of optional purchases; and
    2. without prejudice to paragraph 6, where the procurement is to be conducted in multiple parts, with contracts to be awarded at the same time or over a given period to one or more suppliers, base its calculation on the total maximum value of the procurement over its entire duration.
  2. The selection of the valuation method by a procuring entity shall not be used, nor shall any procurement requirement be divided, for the purposes of avoiding the application of this Chapter.
  3. In the case of procurement by lease, rental, or hire purchase of goods or services, or procurement for which a total price is not specified, the basis for valuation shall be:
    1. in the case of a fixed-term contract:
      1. where the term of the contract is 12 months or less, the total estimated maximum value for its duration; or
      2. where the term of the contract exceeds 12 months, the total estimated maximum value, including any estimated residual value;
    2. where the contract is for an indefinite period, the estimated monthly instalment multiplied by 48; and
    3. where it is not certain whether the contract is to be a fixed-term contract, subparagraph (b) shall be used.
  4. Where the total estimated maximum value of a procurement over its entire duration is not known, the procurement shall be a covered procurement, unless otherwise excluded under this Chapter.
  5. The Parties acknowledge and affirm the Memorandum of Understanding on Defence Industry Cooperation between the Ministry of National Defense of the Republic of Korea and the Department of Defence of Australia, dated 8 August 2001 (the "MOU"), including any amendment to or extension thereto. The Parties recognise that the benefits and responsibilities established under the MOU will continue to apply.

Article 12.2: Exceptions

  1. Provided that such measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties where the same conditions prevail or a disguised restriction on trade between the Parties, nothing in this chapter shall be construed to prevent a Party from adopting or maintaining measures:
    1. necessary to protect public morals, order or safety;
    2. necessary to protect human, animal or plant life or health;
    3. necessary to protect intellectual property; or
    4. relating to goods or services of handicapped persons, of philanthropic or not-for-profit institutions, or of prison labour.
  2. The parties understand that paragraph 1(b) includes environmental measures necessary to protect human, animal or plant life or health.
  3. Further to Article 22.2 (Essential Security), nothing in this Chapter shall be construed to prevent a party from taking any action which it considers necessary for the protection of its essential security interests relating to government procurement indispensable for national security or for national defence purposes.

Article 12.3: General Principles

National Treatment and Non-Discrimination

  1. With respect to any measure regarding covered procurement, each party and its procuring entities shall accord to the goods, services and suppliers of the other party treatment no less favourable than the most favourable treatment the party and its procuring entities accord to domestic goods, services and suppliers.
  2. With respect to any measure regarding covered procurement, neither a party nor its procuring entities shall:
    1. treat a locally established supplier less favourably than another locally established supplier on the basis of degree of foreign affiliation or ownership; or
    2. discriminate against a locally established supplier on the basis that the goods or services offered by that supplier for a particular procurement are goods or services of the other Party.

Measures Not Specific to Procurement

  1. Paragraphs 1 and 2 shall not apply to measures regarding customs duties and other charges of any kind imposed on, or in connection with, importation, the method of levying such duties and charges, or other import regulations including restrictions and formalities, and measures affecting trade in services other than measures regarding covered procurement.

Prohibition of Offsets

  1. Neither a Party nor its procuring entities shall seek, take account of, impose or enforce offsets at any stage of a covered procurement.

Rules of Origin

  1. Each Party shall apply to covered procurements of goods or services the rules of origin that it applies in the normal course of trade to those goods or services.

Conduct of Procurement and Tendering Procedures

  1. Each Party shall ensure that its procuring entities comply with this Chapter in conducting covered procurements.
  2. A procuring entity may use open, selective or limited tendering procedures.
  3. No procuring entity shall prepare, design, or otherwise structure or divide any procurement, in any stage of the procurement, for the purposes of avoiding the application of this Chapter.
  4. Further to Article 22.4 (Disclosure of Information), nothing in this Chapter shall be construed as requiring a Party or its procuring entities to disclose, furnish or allow access to confidential information furnished by a person where such disclosure might prejudice fair competition between suppliers, without the authorisation of the person that furnished that information.

Article 12.4: Publication of Notices

Notice of Procurement

  1. In an open tendering procedure, a procuring entity shall publish a notice inviting interested suppliers to submit tenders (hereinafter referred to as "notice of procurement") in electronic or paper media that are widely disseminated and remain readily accessible to any interested supplier of the other Party for the entire period established for tendering.
  2. Where, in a selective tendering procedure, a procuring entity publishes a notice inviting applications for participation or requesting suppliers to express their interest in a covered procurement, that notice shall be published in electronic or paper media that are widely disseminated and readily accessible to any interested supplier of the other Party.
  3. Unless otherwise provided in this Chapter, each notice of procurement shall include:
    1. the name and address of the procuring entity and other information necessary to contact the procuring entity and obtain all relevant documents relating to the procurement;
    2. a description of the procurement and any conditions for participation;
    3. where appropriate, the time-frame for delivery of goods or services; and
    4. the address and time limit for the submission of tenders.

Notice of Planned Procurement

  1. Each Party shall encourage its procuring entities to publish prior to, or as early as possible in, each fiscal year, a notice regarding their procurement plans for that fiscal year. The notice should, at a minimum, include a description of each planned procurement and indicate the expected time of commencement of the related tender procedure.

Article 12.5: Time Limits

  1. A procuring entity shall prescribe time limits for tendering that allow suppliers adequate time to submit applications or requests to participate in a covered procurement and to prepare and submit responsive tenders, taking into account the nature and complexity of the procurement.
  2. A procuring entity shall require all participating suppliers to submit tenders in accordance with a common deadline. For greater certainty, this requirement shall also apply where:
    1. as a result of a need to amend information provided to suppliers during the procurement process, the procuring entity extends the time limit for qualification or tendering procedures; or
    2. negotiations are terminated and suppliers may submit new tenders.
  3. Unless provided for in paragraph 4, the final date for the receipt of tenders shall not be less than 25 days from the date on which a notice of procurement is published or, in the case of selective tendering, from the date on which the procuring entity invites suppliers to submit tenders.
  4. A procuring entity may reduce the time limit for the receipt of tenders to not less than 10 days:
    1. where the procuring entity has published a separate notice, including a notice of planned procurement under Article 12.4.4, at least 30 days and not more than 12 months in advance, and such separate notice contains a description of the procurement, the time limits for the submission of tenders or, where appropriate, applications for participation in a procurement, and the address from which documents relating to the procurement may be obtained;
    2. in the case of the second or subsequent publication of notices for procurement of a recurring nature;
    3. where a state of urgency duly substantiated by the procuring entity renders the time period for tendering established in accordance with paragraph 3 impracticable; or
    4. where the procuring entity procures commercial goods or services that are sold or offered for sale to, and customarily purchased and used by, non-governmental buyers for non-governmental purposes, including goods and services with modifications customary in the commercial marketplace, as well as minor modifications not customarily available in the commercial marketplace.

Article 12.6: Conditions for Participation

  1. A Party and its procuring entities shall limit any conditions for participation in a covered procurement to those that ensure the potential supplier's capability to fulfil the contract in question.
  2. In assessing whether a supplier satisfies the conditions for participation, a Party and its procuring entities:
    1. shall evaluate the capabilities of a supplier on the basis of that supplier's business activities both inside and outside the territory of the Party of the procuring entity;
    2. shall base its determination solely on the conditions that a procuring entity has specified in advance in notices or tender documentation;
    3. shall not impose the condition that, in order for a supplier to participate in a procurement or be awarded a contract, the supplier has previously been awarded one or more contracts by a procuring entity of that Party or that the supplier has prior work experience in the territory of that Party; and
    4. may require prior experience where relevant to meet the requirements of the procurement.
  3. Nothing in this Article shall preclude the exclusion of any supplier on grounds such as:
    1. bankruptcy;
    2. false declarations;
    3. significant or persistent deficiencies in performance of any substantive requirement or obligation under a prior contract;
    4. final judgments in respect of serious crimes or other serious offences;
    5. professional misconduct, or acts or omissions, that adversely reflect on the commercial integrity of the supplier; or
    6. failure to pay taxes.

Article 12.7: Registration and Qualification of Suppliers

  1. Where a Party or a procuring entity requires suppliers to register or pre-qualify before being permitted to participate in a covered procurement, that Party or procuring entity shall ensure that a notice inviting suppliers to apply for registration or pre-qualification is published in adequate time to enable interested suppliers to initiate and, to the extent that it is compatible with the efficient operation of the procurement process, complete the registration or qualification procedures.
  2. A Party or procuring entity may establish a multi-use list, provided that the Party or procuring entity annually publishes or otherwise makes available continuously in electronic form a notice inviting interested suppliers to apply for inclusion on the list. The notice shall include:
    1. a description of the goods and services, or categories thereof, for which the list may be used;
    2. the conditions for participation to be satisfied by suppliers and the methods that the procuring entity or other government agency will use to verify a supplier's satisfaction of the conditions;
    3. the name and address of the procuring entity or other government agency and other information necessary to contact the entity and obtain all relevant documents relating to the list; and
    4. any deadlines for submission of applications for inclusion on that list.
  3. A Party or procuring entity that maintains a multi-use list shall include on the list all suppliers that satisfy the conditions for participation within a reasonably short time.
  4. Where a supplier applies for participation in a covered procurement, or for inclusion on a list referred to in paragraph 2, a procuring entity shall promptly advise such supplier of its decision with respect to its application.

Article 12.8: Technical Specifications

  1. A procuring entity shall not prepare, adopt or apply any technical specification or prescribe any conformity assessment procedure with the purpose or the effect of creating unnecessary obstacles to trade between the Parties.
  2. In prescribing the technical specifications for the goods or services being procured, a procuring entity shall, where appropriate:
    1. set out the technical specification in terms of performance and functional requirements, rather than design or descriptive characteristics; and
    2. base the technical specification on international standards, where such standards exist, otherwise on national technical regulations, recognised national standards or building codes.
  3. A procuring entity shall not prescribe technical specifications that require or refer to a particular trademark or trade name, patent, copyright, design, type, specific origin, producer or supplier, unless there is no other sufficiently precise or intelligible way of describing the procurement requirements and provided that, in such cases, the procuring entity includes words such as "or equivalent" in the tender documentation.
  4. A procuring entity shall not seek or accept, in a manner that would have the effect of precluding competition, advice that may be used in the preparation or adoption of any technical specification for a specific covered procurement from a person that may have a commercial interest in the procurement.
  5. Notwithstanding paragraph 4, a procuring entity may:
    1. conduct market research in developing technical specifications for a specific covered procurement; or
    2. allow a supplier that has been engaged to provide design or consulting services to participate in procurements related to such services, provided it would not give the supplier an unfair advantage over other suppliers.
  6. For greater certainty, a procuring entity may prepare, adopt or apply technical specifications to promote the conservation of natural resources or protect the environment.

Article 12.9: Tender Documentation

  1. A procuring entity shall promptly provide, on request, to any supplier participating in a covered procurement, tender documentation that includes all information necessary to permit suppliers to prepare and submit responsive tenders.
  2. Unless already provided in the notice of procurement, such documentation shall include a complete description of:
    1. the procurement, including the nature, scope and, where known, the quantity of the goods or services to be procured and any requirements to be fulfilled, including any technical specifications, conformity certification, plans, drawings, or instructional materials;
    2. any conditions for participation, including any financial guarantees, information, and documents that suppliers are required to submit;
    3. all criteria to be considered in the awarding of the contract;
    4. where there will be a public opening of tenders, the date, time, and place for the opening of tenders; and
    5. any other terms or conditions relevant to the evaluation of tenders.
  3. Neither a Party nor its procuring entities shall provide information with regard to a specific covered procurement in a manner which would have the effect of giving a potential supplier or group of potential suppliers an advantage over competitors.
  4. A procuring entity shall reply promptly to any reasonable request for relevant information submitted by a supplier participating in the tendering procedure.
  5. Where, during the course of a covered procurement, a procuring entity modifies the criteria or technical requirements set out in notices or tender documentation provided to participating suppliers, or amends or reissues notices or tender documentation, it shall transmit in writing all such modifications or all such amended or reissued notices or tender documentation:
    1. to all the suppliers that are participating at the time the information is amended, if known, and in all other cases, in the same manner as the original information was provided; and
    2. in adequate time to allow such suppliers to modify and resubmit their tenders, as appropriate.

Article 12.10: Selective Tendering Procedures

To ensure optimum effective competition under selective tendering procedures, procuring entities shall invite tenders from the maximum number of domestic suppliers and suppliers of the other Party that is consistent with the efficient operation of the procurement system. They shall select the suppliers to participate in the procedure in a fair and non-discriminatory manner.

Article 12.11: Limited Tendering

  1. Provided that it does not use this Article for the purpose of avoiding competition, to protect domestic suppliers or in a manner that discriminates against suppliers of the other Party, and subject to paragraph 2, a procuring entity may use limited tendering procedures. When a procuring entity applies limited tendering, it may choose, according to the nature of the procurement, not to apply Articles 12.4 through 12.10, 12.12.1, and 12.12.3 through 12.12.8.
  2. A procuring entity may use limited tendering only under the following circumstances:
    1. where, in response to a prior notice, invitation to participate, or invitation to tender:
      1. no tenders were submitted or no suppliers requested participation;
      2. no tenders were submitted that conform to the essential requirements in the tender documentation;
      3. no suppliers satisfied the conditions for participation; or
      4. the tenders submitted have been collusive,
      and the procuring entity does not substantially modify the essential requirements of the procurement;
    2. where, for works of art, or for reasons connected with the protection of exclusive rights, such as patents or copyrights, or proprietary information, or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists;
    3. for additional deliveries by the original supplier or its authorised agent that are intended either as replacement parts, extensions, or continuing services for existing equipment, software, services or installations, where a change of supplier would compel the procuring entity to procure goods or services not meeting requirements of interchangeability with existing equipment, software, services, or installations;
    4. for goods purchased on a commodity market;
    5. where a procuring entity procures a prototype or a first good or service that is intended for limited trial or developed at its request in the course of, and for, a particular contract for research, experiment, study, or original development. original development of a first good or service may include limited production or supply in order to incorporate the results of field testing and to demonstrate that the good or service is suitable for production or supply in quantity to acceptable quality standards;
    6. for new construction services consisting of the repetition of similar construction services that conform to a basic project for which an initial contract was awarded following use of open tendering or selective tendering in accordance with this chapter, and for which the procuring entity has indicated in the notice of procurement concerning the initial construction service that limited tendering procedures might be used in awarding contracts for such new construction services;
    7. for purchases made under exceptionally advantageous conditions that only arise in the very short term, such as from unusual disposals, unsolicited innovative proposals, liquidation, bankruptcy or receivership and not for routine purchases from regular suppliers;
    8. in so far as is strictly necessary where, for reasons of extreme urgency brought about by events unforeseen by the procuring entity, the goods or services could not be obtained in time by means of an open or selective tendering procedure; or
    9. where a contract is awarded to the winner of a design contest, provided that:
      1. the contest has been organised in a manner that is consistent with this chapter; and
      2. the contest is judged by an independent jury with a view to a design contract being awarded to the winner.
  3. For each contract awarded under paragraphs 1 and 2, a procuring entity shall prepare a written report that includes:
    1. the name of the procuring entity;
    2. the value and kind of goods or services procured; and
    3. a statement indicating the circumstances and conditions described in paragraphs 1 and 2 that justify the use of a procedure other than open or selective tendering procedures.

Article 12.12: Receipt and Opening of Tenders and Awarding of Contracts

  1. A procuring entity shall receive and open all tenders under procedures that guarantee the fairness and impartiality of the procurement process.
  2. A procuring entity shall treat all tenders in confidence subject to the laws of the Party of the procuring entity. In particular, it shall not provide information to particular suppliers that might prejudice fair competition between suppliers.
  3. A procuring entity shall not penalise any supplier whose tender is received after the time specified for receiving tenders if the delay is due solely to mishandling on the part of the procuring entity.
  4. Where a procuring entity provides suppliers with opportunities to correct unintentional errors of form between the opening of tenders and the awarding of the contract, the procuring entity shall provide the same opportunities to all participating suppliers.
  5. A procuring entity shall require that, in order to be considered for award, a tender be submitted in writing and, at the time of opening, conform to the essential requirements of the tender documentation.
  6. Unless a procuring entity determines that it is not in the public interest to award a contract, it shall award the contract to the supplier that the procuring entity has determined to satisfy the conditions for participation and whose tender is determined to be the most advantageous or best value for money, in accordance with the requirements and evaluation criteria specified in the notices and tender documentation.
  7. Where a procuring entity receives a tender with a price that is abnormally lower than the prices in other tenders submitted, it may verify with the supplier that it can comply with the conditions for participation and is capable of fulfilling the terms of the contract.
  8. A procuring entity shall not cancel a covered procurement, nor terminate or modify awarded contracts, so as to circumvent the requirements of this chapter.

Article 12.13: Post-Award Information

  1. No later than 60 days after award of a contract, a procuring entity shall publish a notice in an officially designated publication that includes at least the following information about the award:
    1. the name and address of the procuring entity;
    2. a description of the goods or services procured;
    3. the date of award or the contract date;
    4. the contract value;
    5. the name and address of the successful supplier; and
    6. the procurement method used.
  2. A procuring entity shall promptly inform suppliers that have submitted tenders of the contract award decision. A procuring entity shall, on request, provide an unsuccessful supplier with the reasons that the procuring entity did not select its tender.
  3. A procuring entity shall maintain records and reports relating to the conduct of procurements covered by this Chapter, including reports required by Article 12.11.3, for a period of at least three years after the date it awards a contract.

Article 12.14: Ensuring Integrity in Procurement Processes

Each Party shall ensure that criminal or administrative penalties exist to sanction:

  1. a procurement official of that Party who solicits or accepts, directly or indirectly, any article of monetary value or other benefit, for that procurement official or for another person, in exchange for any act or omission in the performance of that procurement official's procurement functions;
  2. any person who offers or grants, directly or indirectly, to a procurement official of that Party, any article of monetary value or other benefit, for that procurement official or for another person, in exchange for any act or omission in the performance of that procurement official's procurement functions; and
  3. any person intentionally offering, promising or giving any undue pecuniary or other advantage, whether directly or through intermediaries, to a foreign procurement official, for that foreign procurement official or a third party, in order that the foreign procurement official act or refrain from acting in relation to the performance of procurement duties, in order to obtain or retain business or other improper advantage.

Article 12.15: Domestic Review Procedures

  1. In the event of a complaint by a supplier of a Party that there has been a failure to apply the other Party's measures implementing this Chapter in the context of a covered procurement in which the supplier has or had an interest, the Party of the procuring entity shall encourage the supplier to seek resolution of its complaint in consultation with the procuring entity. in such instances the procuring entity shall accord timely and impartial consideration to any such complaint and ensure that the making of any such complaint is not prejudicial to the supplier's participation in ongoing or future procurement or right to seek corrective measures under administrative or judicial review procedures.
  2. Each Party shall maintain at least one impartial administrative or judicial authority that is independent of its procuring entities to receive and review, in a non-discriminatory, timely, transparent and effective manner, complaints that a supplier of the other Party submits, in accordance with the laws and regulations of the Party of the procuring entity, relating to a covered procurement.
  3. Each Party shall make information on complaint mechanisms generally available.

Article 12.16: Rectifications and Modifications to Coverage

  1. A Party may modify its coverage under this Chapter, provided that:
    1. it notifies the other Party in writing and simultaneously offers acceptable compensatory adjustments to the other Party to maintain a level of coverage comparable to that existing prior to the modification, except as provided in paragraphs 2 and 3; and
    2. the other Party does not object in writing within 30 days of the notification.
  2. Each Party may make rectifications of a purely formal nature to its coverage under this Chapter, or minor amendments to its Government Procurement Schedules referred to in Annex 12-A, provided that it notifies the other Party in writing and the other Party does not object in writing within 30 days of the notification. A Party that makes such a rectification or minor amendment need not provide compensatory adjustments.
  3. A Party need not provide compensatory adjustments in those circumstances where the Parties agree that the proposed modification covers a procuring entity over which a Party has effectively eliminated its control or influence. Where the Parties do not agree that such government control or influence has been effectively eliminated, the objecting Party may request further information or consultations with a view to clarifying the nature of any government control or influence and reaching agreement on the procuring entity's continued coverage under this Chapter.

Article 12.17: Definitions

For the purposes of this Chapter:

build-operate-transfer contract and public works concession contract means any contractual arrangement the primary purpose of which is to provide for the construction or rehabilitation of physical infrastructure, plant, buildings, facilities, or other government owned works and under which, as consideration for a supplier's execution of a contractual arrangement, a procuring entity grants the supplier, for a specified period of time, temporary ownership or a right to control and operate, and demand payment for the use of, such works for the duration of the contract;

conditions for participation means registration, qualification, and other prerequisites for participation in a procurement;

in writing or written means any worded or numbered expression that can be read, reproduced, and later communicated. This may include electronically transmitted and stored information;

limited tendering procedures means those tendering procedures covered by Article 12.11;

multi-use list means a list of suppliers that a Party or procuring entity has determined satisfy the conditions for participation in that list, and that the Party or procuring entity intends to use more than once;

offset means any condition or undertaking that encourages local development or improves a Party's balance of payments accounts such as the use of domestic content, the licensing of technology, investment, counter-trade, and similar actions or requirements;

open tendering procedures means a procurement method where all interested suppliers may submit a tender;

procuring entity means an entity listed in Sections A, B or C of Annex 12-A;

selective tendering procedures means a procurement method where only suppliers qualified to tender or satisfying the conditions for participation are invited by the procuring entity to submit a tender;

services includes construction services unless otherwise specified;

supplier means a person that provides or could provide goods or services; and

technical specification means a tendering requirement that:

  1. sets out the characteristics of goods or services to be procured, including quality, performance, safety, and dimensions, or the processes and methods for their production or provision; or
  2. addresses terminology, symbols, packaging, marking, or labelling requirements, as they apply to a good or service.

Annex 12-A: Government Procurement

Section A: Central Government Entities

This Chapter applies to central government entities listed in each Party's Schedule to this Section where the value of the procurement is estimated, in accordance with Articles 12.1.4 through 12.1.7, to equal or exceed:

  1. for procurement of goods and services:
    130,000 SDR
  2. for procurement of construction services:
    5,000,000 SDR

Schedule of Australia (Notes 1 and 2)

Administrative Appeals Tribunal

Attorney-General's Department

Australian Bureau of Statistics

Australian Centre for International Agricultural Research

Australian Crime Commission

Australian Customs and Border Protection Service

Australian Electoral Commission

Australian Federal Police

Australian Institute of Criminology

Australian Law Reform Commission

Australian National Audit Office

Australian Office of Financial Management (AOFM)

Australian Public Service Commission

Australian Radiation Protection and Nuclear Safety Agency (ARPANSA)

Australian Research Council

Australian Taxation Office

Australian Trade Commission

Australian Transaction Reports and Analysis Centre (AUSTRAC)

Australian Transport Safety Bureau

Bureau of Meteorology

Commonwealth Grants commission

ComSuper

CrimTrac Agency

Defence Materiel Organisation (Note 3)

Department of Agriculture

Department of communications

Department of Defence (Note 3)

Department of Education

Department of Employment

Department of Environment

Department of Finance

Department of Foreign Affairs and Trade

Department of Health

Department of the House of Representatives

Department of Human services

Department of immigration and Border Protection

Department of industry

Department of Infrastructure and Regional Development

Department of Parliamentary services

Department of the Prime Minister and cabinet

Department of the senate

Department of social services

Department of the Treasury

Department of Veterans' Affairs

Fair Work commission

Family court and Federal circuit court

Federal Court of Australia

Geoscience Australia

Inspector-General of Taxation

IP Australia

Migration Review Tribunal and Refugee Review Tribunal

National Archives of Australia

National Blood Authority

National Capital Authority

National competition council

Office of the Australian Information Commissioner

Office of the Australian Accounting Standards Board

Office of the Commonwealth Ombudsman

Office of the Director of Public Prosecutions

Office of the Fair Work Ombudsman

Office of the Inspector-General of Intelligence and Security

Office of the Official Secretary to the Governor-General

Office of Parliamentary Counsel

Old Parliament House

Productivity commission

Professional Services Review Scheme

Royal Australian Mint

Safe Work Australia

Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority)

Workplace Gender Equality Agency

Notes to the Schedule of Australia

  1. This Chapter covers only those entities which are listed in this Schedule.
  2. This chapter does not cover the procurement of motor vehicles by any entity listed in this Section.
  3. Department of Defence and Defence Material Organisation
    1. this Chapter does not cover Department of Defence and Defence Materiel Organisation procurement of the following goods due to Article 12.2 (Exceptions):

  4. Defence Material Approximately
    equivalent to:
    Weapons FSC 10
    Fire Control Equipment FSC 12
    Ammunition and Explosives FSC 13
    Guided Missiles FSC 14
    Aircraft and Airframe Structural Components FSC 15
    Aircraft Components and Accessories FSC 16
    Aircraft Launching, Landing and Ground Handling Equipment FSC 17
    Space Vehicles FSC 18
    Ships, Small Craft, Pontoons and Floating Docks FSC 19
    Ship and Marine Equipment FSC 20
    Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles FSC 23
    Engines, Turbines, and Components FSC 28
    Engines Accessories FSC 29
    Bearings FSC 31
    Water Purification and Sewage Treatment Equipment FSC 46
    Valves FSC 48
    Maintenance and Repair Shop Equipment FSC 49
    Prefabricated Structures and Scaffolding FSC 54
    Communication, Detection, and Coherent Radiation Equipment FSC 58
    Electrical and Electronic Equipment Components FSC 59
    Fiber Optics Materials, Components, Assemblies, and Accessories FSC 60
    Electric Wire, and Power and Distribution Equipment FSC 61
    Alarm, Signal and Security Detection Systems FSC 63
    Instruments and Laboratory Equipment FSC 66
    Specialty Metals No Code

    Note: Whether a good is included within the scope of this Note shall be determined solely according to the descriptions provided in the left column above. U.S. Federal Supply Codes are provided for reference purposes only (for a complete listing of the United States Federal Supply Codes, to which the Australian categories are approximately equivalent, see http://www.fbo.gov).

    1. for Australia, this Chapter does not cover the following services, as elaborated in the common classification System and the WTO system of classification - MTN.GNS/W/120, due to Article 12.2 (for a complete listing of the Common Classification System, see: http://www.sice.oas.org/trade/nafta/chap-105.asp):
      1. design, development, integration, test, evaluation, maintenance, repair, modification, rebuilding and installation of military systems and equipment (approximately equivalent to relevant parts of U.S. Product Service Codes A & J)
      2. operation of Government-owned Facilities (approximately equivalent to U.S. Product Service Code M)
      3. space services (AR, B4 & V3)
      4. services in support of military forces overseas
    2. this Chapter does not cover the procurement of goods and services by, or on behalf of, the Defence intelligence Organisation, the Defence Signals Directorate, or the Defence imagery and Geospatial Organisation
    3. in respect of Article 12.3, the Australian Government reserves the right, pursuant to Article 12.2, to maintain the Australian industry capability program and its successor programs and policies.

Schedule of Korea

Anti-corruption and Civil Rights Commission of Korea

Board of Audit and Inspection

Cultural Heritage Administration

Defense Acquisition Program Administration (Note 3)

Fair Trade Commission

Financial Services Commission

Korea Coast Guard (Note 5)

Korea Communications Commission

Korea Customs Service

Korea Forest Service

Korea intellectual Property Office

Korea Meteorological Administration

Military Manpower Administration

Ministry of Agriculture, Food and Rural Affairs

Ministry of Culture, Sports and Tourism

Ministry of Education

Ministry of Employment and Labor

Ministry of Environment

Ministry of Food and Drug Safety

Ministry of Foreign Affairs

Ministry of Gender Equality and Family

Ministry of Government Legislation

Ministry for Health and Welfare

Ministry of Justice

Ministry of Land, Infrastructure and Transport

Ministry of National Defense (Note 3)

Ministry of Oceans and Fisheries

Ministry of Patriots and Veterans Affairs

Ministry of Science, ICT and Future Planning

Ministry of Security and Public Administration

Ministry of Strategy and Finance

Ministry of Trade, Industry and Energy

Ministry of unification

Multifunctional Administrative City Construction Agency

National Emergency Management Agency

National Human Rights Commission of Korea

National Police Agency (Note 5)

National Tax Service

Office for Government Policy Coordination

Prime Minister's Secretariat

Public Procurement Service (Note 4)

Rural Development Administration

Small and Medium Business Administration

Statistics Korea

Supreme Prosecutors' Office

Notes to the Schedule of Korea

  1. The above central government entities cover their "subordinate linear organizations", "special local administrative agencies", and "attached organs", as prescribed in the relevant provisions of the Government Organization Act of the Republic of Korea.
  2. This Chapter does not apply to any set-asides for small- and medium-sized businesses in accordance with the Act Relating to Contracts to Which the State is a Party and its Presidential Decree, and the procurement of agricultural, fishery and livestock products in accordance with the Grain Management Act, the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, and the Livestock Industry Act.
  3. Ministry of National Defense and Defense Acquisition Program Administration: Subject to the decision of the Korean Government under the provisions of Article 22.2 (Essential Security), for the purchases of the Ministry of National Defense and the Defense Acquisition Program Administration, this Chapter will generally apply to the following FSC categories only, and for services and construction services listed in Section E and Section F, it will apply only to those areas which are not related to national security and defence:

FSC 2510 Vehicular cab, body, and frame structural components

FSC 2520 Vehicular power transmission components

FSC 2540 Vehicular furniture and accessories

FSC 2590 Miscellaneous vehicular components

FSC 2610 Tires and tubes, pneumatic, non-aircraft

FSC 2910 Engine fuel system components, non-aircraft

FSC 2920 Engine electrical system components, non-aircraft

FSC 2930 Engine cooling system components, non-aircraft

FSC 2940 Engine air and oil filters, strainers and cleaners, non-aircraft

FSC 2990 Miscellaneous engine accessories, non-aircraft

FSC 3020 Gears, pulleys, sprockets and transmission chain

FSC 3416 Lathes

FSC 3417 Milling machines

FSC 3510 Laundry and dry cleaning equipment

FSC 4110 Refrigeration equipment

FSC 4230 Decontaminating and impregnating equipment

FSC 4520 Space heating equipment and domestic water heaters

FSC 4940 Miscellaneous maintenance and repair shop specialized equipment

FSC 5120 Hand tools, non-edged, non-powered

FSC 5410 Prefabricated and portable buildings

FSC 5530 Plywood and veneer

FSC 5660 Fencing, fences and gates

FSC 5945 Relays and solenoids

FSC 5965 Headsets, handsets, microphones and speakers

FSC 5985 Antennae, waveguide, and related equipment

FSC 5995 Cable, cord, and wire assemblies: communication equipment

FSC 6220 Electric vehicular lights and fixtures

FSC 6505 Drugs and biologicals

FSC 6840 Pest control agents and disinfectants

FSC 6850 Miscellaneous chemical, specialties

FSC 7310 Food cooking, baking, and serving equipment

FSC 7320 Kitchen equipment and appliances

FSC 7330 Kitchen hand tools and utensils

FSC 7350 Tableware

FSC 7360 Sets, kits, outfits, and modules food preparation and serving

FSC 7530 Stationery and record forms

FSC 7920 Brooms, brushes, mops, and sponges

FSC 7930 Cleaning and polishing compounds and preparations

FSC 8110 Drums and cans

FSC 9150 Oils and greases: cutting, lubricating, and hydraulic FSC 9310 Paper and paperboard

  1. Public Procurement Service: this Chapter covers only those procurements carried out by the Public Procurement Service for the entities listed in this Section. Regarding procurement for entities listed in Sections B and C, the coverage and thresholds for such entities thereunder shall be applied.
  2. National Police Agency and Korea Coast Guard: this Chapter does not cover procurement for the purpose of maintaining public order, as provided in Article 12.2.

Section B: Sub-Central Government Entities

  1. This Chapter applies to sub-central government entities listed in each Party's Schedule to this Section where the value of the procurement is estimated, in accordance with Articles 12.1.4 through 12.1.7, to equal or exceed:
    1. for procurement of goods and services:
      for Australia: 355,000 SDR; and
      for Korea: 200,000 SDR
    2. for procurement of construction services:
      for Australia: 5,000,000 SDR; and
      for Korea: 15,000,000 SDR.
  2. This Chapter covers only those entities specifically listed in this Schedule.

Schedule of Australia

Australian Capital Territory (ACT) (Note 1)

ACT Gambling and Racing Commission

ACT Insurance Authority

ACTION

ACT Auditor-General

Chief Minister and Treasury Directorate

Commerce and Works Directorate

Community Services Directorate

Cultural Facilities Corporation

Economic Development Directorate

Education and Training Directorate

Environment and Sustainable Development Directorate

Health Directorate

Housing ACT

Independent Competition and Regulatory Commission

Justice and Community Safety Directorate

Legal Aid Commission

Ombudsman of the ACT

Territory and Municipal Services Directorate

  1. For the entities listed for the Australian Capital Territory, the Government Procurement chapter does not cover the procurement of health and welfare services, education services, utility services, or motor vehicles.

New South Wales (NSW) (Notes 1 and 2)

The Audit Office of New South Wales

Commission for Children and Young People

Community Relations Commission

Department of Attorney General and Justice

Department of Education and Communities

Department of Family and Community Services

Department of Finance and Services

Department of Planning and infrastructure

Department of Premier and Cabinet

Department of Trade and Investment, Regional Infrastructure and Services

Fire and Rescue NSW

Health Care Complaints Commission

Information and Privacy Commission (for the information and Privacy Commission, this Chapter does not cover procurement related to the functions of the Privacy Commission)

Legal Aid NSW

Ministry for Police and Emergency Services

Ministry of Health

Motor Accidents Authority of NSW

New South Wales Crime Commission

New South Wales Electoral Commission

New South Wales Ombudsman

New South Wales Rural Fire Service

NSW Food Authority

NSW Rural Assistance Authority

Office of the Board of Studies

Office of the Director of Public Prosecutions NSW

Office of the Environment Protection Authority

Police integrity Commission

Public Service Commission

State Emergency Service

Sydney Harbour Foreshore Authority

Sydney Olympic Park Authority

Transport for NSW (for Transport for NSW, this Chapter does not cover procurement related to the functions of The Transport Construction Authority and The Country Rail Infrastructure Authority)

The Treasury

WorkCover NSW

  1. For the entities listed for New South Wales, this Chapter does not cover the procurement of health and welfare services, education services, or motor vehicles.
  2. For the entities listed for New South Wales, this Chapter does not apply to the procurements undertaken by a covered entity on behalf of a non-covered entity.

Northern Territory (NT) (Note 1)

Aboriginal Areas Protection Authority

Auditor-General's Office

Central Australian Hospital Network

Department of Arts and Museums

Department of the Attorney-General and Justice

Department of Business

Department of the Chief Minister

Department of Correctional Services

Department of Health

Department of Housing

Department of Land Resource Management

Department of Lands, Planning and the Environment

Department of the Legislative Assembly

Department of Local Government

Department of Mines and Energy

Department of Primary Industry and Fisheries

Department of Regional Development and Women's Policy

Department of Sport and Recreation

Department of Treasury and Finance

Health and Community Services Complaints Commission

Land Development Corporation

Museum and Art Galleries Board

Northern Territory Electoral Commission

Northern Territory Emergency Service

Northern Territory Employment and Training Authority

Northern Territory Fire and Rescue Service

Northern Territory Licensing Commission

Office of the Commissioner for Public Employment

Ombudsman's Office

Parks and Wildlife Commission of the Northern Territory

Police Force of the Northern Territory

Racing Commission

Remuneration Tribunal

Strehlow Research Centre Board

Top End Hospital Network

Tourism NT

Utilities Commission of the Northern Territory

Work Health Authority

  1. For the entities listed for the Northern Territory, this Chapter does not cover set-asides on behalf of the Charles Darwin University pursuant to Partnership Agreements between the Northern Territory Government and Charles Darwin University.

Queensland (Notes 1 and 2)

Entities declared to be departments pursuant to section 14 of the Public Service Act 2008

Public Service Commission

Public Trust Office

  1. For the entities listed for Queensland, this Chapter does not apply to procurement:
    1. by covered entities on behalf of non-covered entities;
    2. undertaken by departments, or parts of departments, which deliver health, education, training and/or arts services; and
    3. of health services, education services, training services, arts services, welfare services, government advertising and motor vehicles.

South Australia (SA) (Note 1)

Aboriginal Affairs and Reconciliation Division

Arts SA

Attorney-General's Department

Auditor-General's Department

Country Fire Service

Courts Administration Authority

Defence SA

Department for Communities and Social Inclusion

Department for Correctional Services

Department of Education and Child Development

Department of Environment, Water and Natural Resources

Department of Further Education, Employment, Science and Technology

Department of Health and Ageing

Department for Manufacturing, Innovation, Trade, Resources and Energy

Department of Planning, Transport and Infrastructure

Department of the Premier and Cabinet

Department of Primary Industries and Regions of South Australia

Department of Treasury and Finance

Electoral Commission SA

Environment Protection Authority

Independent Gambling Authority

Legal Services Commission

Office for State / Local Government Relations

Parliament of South Australia

South Australian Fire and Emergency Services Commission

South Australian Metropolitan Fire Services

South Australia Police

South Australian Tourism Commission

State Emergency Services

State Procurement Board

TAFE SA

  1. For the entities listed for South Australia, this Chapter does not cover the procurement of health and welfare services, education services, advertising services or motor vehicles.

Tasmania (Note 1)

Department of Economic Development, Tourism and the Arts

Department of Education

Department of Health and Human Services

Department of Infrastructure, Energy and Resources

Department of Justice

Department of Police and Emergency Management

Department of Premier and Cabinet

Department of Primary Industries, Parks, Water and Environment

Department of Treasury and Finance

House of Assembly

Legislative Council

Legislature-General

Office of the Director of Public Prosecutions

Office of the Governor

Office of the Ombudsman

Tasmanian Audit Office

Tasmanian Health Organisation - North

Tasmanian Health Organisation - North West

Tasmanian Health Organisation - South

  1. For the entities listed for Tasmania, this Chapter does not cover the procurement of health and welfare services, education services, or advertising services.

Victoria (Notes 1 and 2)

Commissioner for Environmental Sustainability

Department of Education, Early Childhood and Development

Department of Environment and Primary Industries

Department of Health Department of Human Services

Department of Justice Department of Premier and Cabinet

Department of State Development, Business and Innovation

Department of Transport, Planning and Local Infrastructure

Department of Treasury and Finance

Independent Broad-based Anti-corruption Commission

Office of the Chief Commissioner of Police (Victoria Police)

Office of the Commission for Children and Young People

Office of the Essential Services Commission

Office of the Fire Services Levy Monitor

Office of the Legal Services Commissioner

Office of the Ombudsman

Office of the Privacy Commissioner

Office of Public Prosecutions

Office of the Road Safety Camera Commissioner

Office of the Taxi Services Commission

Office of the Victorian Commission for Gambling and Liquor Regulation

Office of the Victorian Responsible Gambling Foundation

State Services Authority

Victorian Auditor-General's Office

Victorian Electoral Commission

Victorian Equal Opportunity and Human Rights Commission

Victorian Inspectorate

  1. For the entities listed for Victoria, this Chapter does not cover the procurement of motor vehicles.
  2. For the entities listed for Victoria, this Chapter does not apply to procurements by covered entities on behalf of non-covered entities.

Western Australia

Botanic Gardens and Parks Authority

Corruption and Crime Commission (Western Australia)

Country High Schools Hostels Authority

Department of the Attorney General

Department for Child Protection

Department for Communities

Department of Agriculture and Food

Department of Commerce

Department of Corrective Services

Department of Culture and the Arts

Department of Education

Department of Training and Workforce Development

Department of Education Services

Department of Environment and Conservation

Department of Finance

Department of Fire and Emergency Services

Department of Fisheries

Department of Health

Department of Housing

Department of Indigenous Affairs

Department of Local Government

Department of Mines and Petroleum

Department of Planning

Department of the Premier and Cabinet

Department of Racing, Gaming and Liquor

Department of Regional Development and Lands

Department of the Registrar Western Australian Industrial Relations Commission

Department of State Development

Department of Sport and Recreation

Department of Training and Workforce Development

Department of Treasury

Department of Water

Disability Services Commission

Equal Opportunity Commission

Gascoyne Development Commission

Goldfields Esperance Development Commission

Governor's Establishment

Great Southern Development Commission

Heritage Council of Western Australia

Kimberley Development Commission

Law Reform Commission of Western Australia

Legislative Assembly

Legislative Council

Main Roads Western Australia

Mid West Development Commission

Minerals and Energy Research Institute of Western Australia

National Trust of Australia (WA)

Office of the Auditor General

Office of the Director of Public Prosecutions

Office of the information Commissioner

Office of the Inspector of Custodial Services

Office of the Parliamentary Commissioner for Administrative Investigations

Parliamentary Services Department

Peel Development Commission

Pilbara Development Commission

Public Sector Commission

Public Transport Authority

Rottnest Island Authority

Rural Business Development Corporation

Salaries and Allowances Tribunal

School Curriculum and Standards Authority

Small Business Development Corporation

South West Development Commission

State Library of Western Australia

Swan River Trust

Western Australia Police

Western Australian Electoral Commission

Western Australian Land Information Authority (Landgate)

Western Australian Planning Commission

Western Australian Sports Centre Trust (trading as VenuesWest)

Western Australian Tourism Commission

Wheatbelt Development Commission

Zoological Parks Authority

Schedule of Korea

Busan Metropolitan City

Chungcheongbuk-do

Chungcheongnam-do

Daegu Metropolitan City

Daejeon Metropolitan City

Gangwon-do

Gwangju Metropolitan City

Gyeonggi-do

Gyeongsangbuk-do

Gyeongsangnam-do

Incheon Metropolitan City

Jeju Special Self-Governing Province

Jeollabuk-do

Jeollanam-do

Seoul Metropolitan Government

Ulsan Metropolitan City

Notes to the Schedule of Korea

  1. The above sub-central administrative government entities cover their "subordinate organizations under direct control", "offices" and "branch offices", as prescribed in the relevant provisions of the Local Autonomy Act of the Republic of Korea. Any entity with a separate legal personality that is not listed in this Annex is not covered.
  2. This Chapter does not apply to any set-asides for small- and medium-sized businesses according to the Act Relating to Contracts to Which the Local Government is a Party and its Presidential Decree.

Section C: Other Covered Entities

This Chapter applies to other covered entities listed in each Party's Schedule to this Section where the value of the procurement is estimated, in accordance with Articles 12.1.4 through 12.1.7, to equal or exceed:

  1. for procurement of goods:
    450,000 SDR
  2. for procurement of construction services:
    15,000,000 SDR

Schedule of Australia (Notes 1, 2 and 3)

Australian Communications and Media Authority

Australian Competition and Consumer Commission

Australian Financial Security Authority

Australian Fisheries Management Authority

Australian Human Rights Commission

Australian Institute of Marine Science

Australian Maritime Safety Authority

Australian Pesticides and Veterinary Medicines Authority

Australian Prudential Regulation Authority

Australian Securities and Investments Commission

Comcare

Commonwealth Scientific and Industrial Research Organisation

Corporations and Markets Advisory Committee

The Director of National Parks

Great Barrier Reef Marine Park Authority

Safe Work Australia

Sydney Harbour Federation Trust

Tourism Australia

Notes to the Schedule of Australia

  1. This Chapter covers only those entities specifically listed in this Schedule.
  2. For the entities listed in this Section, this Chapter covers only the procurement of goods and construction services as specified in Australia's schedules in Sections D and F of this Annex.
  3. For the entities listed in this Section, this Chapter does not cover the procurement of motor vehicles.

Schedule of Korea

Industrial Bank of Korea

Korea Agro-Fisheries Trade Corporation

Korea Coal Corporation

Korea Development Bank

Korea Electric Power Corporation (except purchases of products in the categories of HS Nos. 8504, 8535, 8537 and 8544)

Korea Expressway Corporation

Korea Gas Corporation

Korea Land and Housing Corporation

Korea Minting and Security Printing Corporation

Korea National Oil Corporation

Korea Resources Corporation

Korea Railroad Corporation

Korea Rural Community Corporation

Korea Tourism Organization

Korea Trade-Investment Promotion Agency

Korea Water Resources Corporation

Korea Workers' Compensation and Welfare Service

Notes to the Schedule of Korea

  1. This Chapter does not apply to any set-asides for small- and medium-sized businesses according to the Act on the Management of Public Institutions and the Rule on Contract Business of Public Institutions and Quasi-Governmental Institutions, the Local Public Enterprises Act and the Enforcement Regulations of the Local Public Enterprise Act.

Section D: Goods

  1. This Chapter applies to all goods procured by the entities listed in Sections A, B and C, unless otherwise specified in this Chapter, including this Annex.
  2. This Chapter does not cover the procurement of blood and blood products, including plasma-derived products.

Section E: Services

This Chapter applies to all services procured by the entities listed in Sections A and B, unless otherwise specified in this Chapter, including this Annex.

Schedule of Australia

This Chapter does not cover the procurement of:

  1. plasma fractionation services;
  2. government advertising services;
  3. legal services;
  4. telecommunications;
  5. educational services;
  6. financial services;
  7. transport services; or
  8. health and welfare services.

Schedule of Korea

Of the WTO Universal List of Services as contained in document WTO/MTN.GNS/W/120, the following services are included (all others being excluded):

GNS/W/120 CPC Description
1.A.b. 862 Accounting, auditing and bookkeeping services
1.A.c. 863 Taxation services
1.A.d. 8671 Architectural services
1.A.e. 8672 Engineering services
1.A.f. 8673 Integrated engineering services
1.A.g. 8674 Urban planning and landscape architectural services
1.B.a. 841 Consultancy services related to the installation of computer hardware
1.B.b. 842 Software implementation services
1.B.c. 843 Data processing services
1.B.d. 844 Data base services
1.B.e. 845 Maintenance and repair services of office machinery and equipment (including computers)
1.E.a. 83103 Rental/leasing services without operators relating to ships
1.E.b. 83104 Rental/leasing services without operators relating to aircraft
1.E.c. 83101, 83105* Rental/leasing services without operators relating to other transport equipment (only passenger vehicles for less than fifteen passengers)
1.E.d. 83106, 83108, 83109 Rental/leasing services without operators relating to other machinery and equipment
1.E.d. 83107 Rental/leasing services without operator relating to construction machinery and equipment
1.F.a. 8711, 8719 Advertising agency services
1.F.b. 864 Market research and public opinion polling services
1.F.c. 865 Management consulting services
1.F.d. 86601 Project management services
1.F.e. 86761* Composition and purity testing and analysis services (only inspection, testing and analysis services of air, water, noise level and vibration level)
1.F.e. 86764 Technical inspection services
1.F.f. 8811*, 8812* Consulting services relating to agriculture and animal husbandry
1.F.f. 8814* Services incidental to forestry (excluding aerial fire fighting and disinfection)
1.F.g. 882* Consulting services relating to fishing
1.F.h. 883* Consulting services relating to mining
1.F.m. 86751, 86752 Related scientific and technical consulting services
1.F.n. 633, 8861 8862, 8863 8864, 8865 8866 Maintenance and repair of equipment
1.F.p. 875 Photographic services
1.F.q. 876 Packaging services
1.F.r. 88442* Printing (screen printing, gravure printing, and services relating to printing)
1.F.s. 87909* Stenography services
1.F.t. 87905 Translation and interpretation services
2.C.j. 7523* On-line information and data-base retrieval
2.C.k. 7523* Electronic data interchange
2.C.l. 7523* Enhanced/value-added facsimile services including store and forward, store and retrieve
2.C.m. - Code and protocol conversion
2.C.n. 843* On-line information and/or data processing (including transaction processing)
2.D.a. 96112*, 96113* Motion picture and video tape production and distribution services (excluding those services for cable TV broadcasting)
2.D.e. - Record production and distribution services (sound recording)
6.A. 9401* Refuse water disposal services (only collection and treatment services of industrial waste water)
6.B. 9402* Industrial refuse disposal services (only collection, transport, and disposal services of industrial refuse)
6.D. 9404*, 9405* Cleaning services of exhaust gases and noise abatement services (services other than construction work services)
6.D. 9406*, 9409* Environmental testing and assessment services (only environmental impact assessment services)
11.A.b. 7212* International transport, excluding cabotage
11.A.d. 8868* Maintenance and repair of vessels
11.F.b. 71233* Transportation of containerized freight, excluding cabotage
11.H.c 748* Freight transport agency services
  • Maritime agency services
  • Maritime freight forwarding services
  • Shipping brokerage services
  • Air cargo transport agency services
  • Customs clearance services
11.I. - Freight forwarding for rail transport

Notes to the Schedule of Korea

Asterisks (*) designate "part of" as described in detail in the Revised Conditional Offer of the Republic of Korea Concerning Initial Commitments on Trade in Services.

Section F: Construction Services

This Chapter applies to all construction services procured by the entities listed in Sections A, B and C, unless otherwise specified in this Chapter, including in this Annex.

Schedule of Australia

For the purposes of Articles 12.6.1 and 12.6.2 Australia requires, as a condition for participation in procurement of building and construction services, compliance with the National Code of Practice for the Construction industry and related implementation guidelines at the central and sub-central government levels, and their successor policies and guidelines. In this respect Australia shall accord to the goods, services and suppliers of Korea, treatment no less favourable than the most favourable treatment it accords to its own goods, services and suppliers.

Schedule of Korea

  1. This Chapter applies to the procurement of all construction services under Division 51 of the United Nations Provisional Central Product Classification (CPC) procured by the entities listed in Sections A through C, unless otherwise specified in this Chapter.
  2. This Chapter does not apply to any set-asides for small- and medium-sized businesses according to the Act on Private Participation in Infrastructure.

Section G: General Notes

Unless otherwise specified herein, the following General Notes in each Party's Schedule apply without exception to this Chapter, including to all sections of this Annex.

Schedule of Australia

This Chapter does not apply to:

  1. any form of preference to benefit small and medium enterprises;
  2. measures to protect national treasures of artistic, historic, or archaeological value;
  3. measures for the health and welfare of indigenous people; and
  4. measures for the economic and social advancement of indigenous people.

Schedule of Korea

  1. This Chapter does not apply to procurement in furtherance of human feeding programs.
  2. For greater clarity, procurement for airports is not covered under this Agreement.

Section H: Value of Thresholds

General

  1. The value of the thresholds set out in Sections A, B and C shall be adjusted at two-year intervals with each adjustment taking effect in January.
  2. Each Party shall calculate and convert for itself the value of the thresholds into its own national currency using the conversion rates published by the IMF in its monthly "International Financial Statistics". Except where paragraph 3 applies, the conversion rates will be the average of the daily values of the respective national currency in terms of the SDR over the two-year period preceding 1 October or 1 November of the year before the adjusted thresholds are to take effect.
  3. In respect of thresholds for sub-central entities Australia may apply the methodology for conversion of SDR amounts into Australian dollars set out in Section 8, Annex 15-A of the Australia-United States Free Trade Agreement as of the date of entry into force of this Agreement to the relevant SDR value set out in paragraph 2(d).
  4. A Party may round its calculations for adjusted thresholds covered by this section according to the following:
    1. for Australia, to the nearest one thousand Australian dollars; and
    2. for Korea, to the nearest one million Korean won for goods and services and the nearest 10 million Korean won for construction services.
  5. Each Party shall notify the other Party of the current thresholds in their respective currencies immediately after this Agreement enters into force, and the adjusted thresholds in their respective currencies thereafter in a timely manner.
  6. The Parties shall consult if a major change in a national currency relative to the SDR or to the national currency of the other Party were to create a significant problem with regard to the application of this Chapter.