Section A – Definitions
Article 3.1: Definitions
For the purposes of this Chapter:
(a) advertising films and recordings means recorded visual
media or audio materials, consisting essentially of images
and/or sound, 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 such
materials 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 or recording and that do not
form part of a larger consignment;
(b) Agriculture Agreement means the Agreement on
Agriculture, contained in Annex 1A of the WTO
Agreement;
(c) agricultural goods means those goods referred to in Article
2 of the Agriculture Agreement;
(d) commercial samples of negligible value means commercial
samples having a value, individually or in the aggregate as
shipped:
(i)
with respect to Chile, of not more than one U.S. dollar or the
equivalent amount in Chilean currency; and(ii)
with respect to Australia, of not more than one Australian
dollar; or
commercial examples so marked, torn, perforated, or
otherwise treated that they are unsuitable for sale or for use
except as commercial samples;
(e) consular transactions means requirements that goods of a
Party intended for export to the territory of the other Party
must first be submitted to the supervision of the Consul of the
importing Party in the territory of the exporting Party for the
purpose of obtaining consular invoices or consular visas for
commercial invoices, certificates of origin, manifests,
shippers' export declarations, or any other customs
documentation required on or in connection with
importation;
(f) export subsidies shall have the meaning assigned to that
term in Article 1(e) of the Agriculture Agreement, including
any amendment of that Article;
(g) goods
intended for display or demonstration includes their
component parts, ancillary apparatus, and accessories;
(h) goods
temporarily admitted for sports purposes means sports
requisites for use in sports contests, demonstrations, or
training in the territory of the Party into whose territory
such goods are admitted;
(i) import licensing means an administrative procedure
requiring the submission of an application or other
documentation (other than that generally required for customs
clearance purposes) to the relevant administrative body as a
prior condition for importation into the territory of the
importing Party;
(j) performance requirement means a requirement that:
(i)
a given level or percentage of goods or services be
exported;(ii) goods or
services of the Party granting an import licence be substituted
for imported goods or services;(iii) a person
benefiting from an import licence purchase other goods or
services in the territory of the Party granting the import
licence, or accord a preference to domestically produced goods
or services;(iv) a person benefiting
from an import licence produce goods or supply services, in the
territory of the Party granting the import licence, with a
given level or percentage of domestic content; or(v) relates in any
way the volume or value of imports to the volume or value of
exports or to the amount of foreign exchange inflows;
(k) 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, publicise, or advertise a good or
service, are essentially intended to advertise a good or
service, and are supplied free of charge.
Article 3.2: Scope and Coverage
Except as otherwise provided, this Chapter applies to trade
in goods of a Party.
Section B - National Treatment
Article
3.3:
National Treatment
Each Party shall accord national treatment to the goods of
the other Party in accordance with Article III of GATT 1994,
including its interpretative notes, and to this end Article III
of GATT 1994, and its interpretative notes, are incorporated
into and made part of this Agreement mutatis
mutandis.
Section C - Tariff Elimination
Article
3.4:
Tariff Elimination
1. Except as
otherwise provided in this Agreement, neither Party may
increase any existing customs duty, or adopt any customs duty,
on an originating good.
2. Except as
otherwise provided in this Agreement, each Party shall
progressively eliminate its customs duties on originating goods
in accordance with its Schedule in Annex 3-B.
3. If a
Party reduces its applied most-favoured-nation import duty rate
after the entry into force of this Agreement and before the end
of the tariff elimination period, the tariff elimination
schedule of that Party shall apply to the reduced rate.
4. On the
request of either Party, the Parties shall consult to consider
accelerating the elimination of customs duties set out in their
Schedules in Annex 3-B. An agreement between the Parties
to accelerate the elimination of a customs duty on a good shall
supersede any duty rate or staging category determined pursuant
to their Schedules in Annex 3-B for such good following
discussion by the Committee on Trade in Goods and when approved
by each Party in accordance with Article 20.1.3(e) (Joint FTA
Committee – Institutional Arrangements Chapter).
5. A Party
may at any time accelerate unilaterally the elimination of
customs duties on originating goods of the other Party set out
in its Schedule in Annex 3-B. A Party considering this
shall inform the other Party as early as practicable before the
new rate of customs duty takes effect.
3.5:
Customs Valuation
The Parties shall apply the provisions of Article VII of GATT
1994 and the WTO Agreement on the Implementation of Article VII
of GATT 1994 for the purposes of determining the customs value
of goods traded between the Parties.
Section D - Special Regimes
Article
3.6:
Temporary Admission of Goods
1. Each
Party shall grant customs duty-free temporary admission 3-[2] for the following goods, regardless of their origin, for the
use solely by or under the personal supervision of a national
or resident of the other Party:
(a) professional
equipment, including equipment for the press or television,
software and broadcasting and cinematographic equipment,
necessary for carrying out the business activity, trade or
profession of a business person who qualifies for temporary
entry pursuant to the laws of the importing Party;(b) goods intended
for display or demonstration at exhibitions, fairs or similar
events;(c) commercial
samples and advertising films and recordings; and(d) goods admitted
for sports purposes.
2. Each
Party shall, at the request of the person concerned and for
reasons deemed valid by its Customs Administration, extend the
time limit for temporary admission beyond the period initially
fixed.
3. Neither
Party may condition the customs duty-free temporary admission
of goods referred to in paragraph 1, other than to require that
such goods:
(a) be used by a
person in the exercise of the business activity, trade,
profession, or sport of that person;(b)
not be sold or leased while in its territory;(c) be accompanied
by a security in an amount no greater than the charges that
would otherwise be owed on entry or final importation,
releasable on exportation of the good;(d) be capable of
identification when taken out of the territory of the other
Party3-[3];(e) be taken out
from the territory of the other Party on or before the
departure of the person referenced in subparagraph (a), or
within such other period, related to the purpose of the
temporary admission, as the Party may establish;(f) be
admitted in no greater quantity than is reasonable for their
intended use; and(g)
be otherwise admissible into the Party's territory under
its laws.
4. If any
condition that a Party imposes under paragraph 3 has not been
fulfilled, the Party may apply the customs duty and any other
charge that would normally be owed on the good plus any other
charges or penalties provided for under its domestic law.
5. Each
Party, through its Customs Administration, shall adopt
procedures providing for the expeditious release of goods
admitted under this Article. To the extent possible, such
procedures shall provide that when such a good accompanies a
national or resident of the other Party who is seeking
temporary entry, the good shall be released simultaneously with
the entry of that national or resident subject to necessary
documentation required by the customs authorities of the
admitting Party.
6. Each
Party shall permit a good temporarily admitted under this
Article to be exported through a customs port other than that
through which it was admitted.
7. Each
Party, through its Customs Administration, consistent with
domestic law, shall relieve the importer or other person
responsible for a good admitted under this Article from any
liability for failure to export the good on presentation of
satisfactory proof to customs authorities that the good has
been destroyed within the original period fixed for temporary
admission or any lawful extension.
8. Subject
to Chapter 9 (Cross-Border Trade in Services) and Chapter 10
(Investment):
(a) each Party
shall allow a container used in international traffic that
enters its territory from the territory of the other Party to
exit its territory on any route that is reasonably related to
the economic and prompt departure of such container;(b) neither 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 container;(c) neither Party
may condition the release of any obligation, including any
bond, that it imposes in respect of the entry of a vehicle into
its territory on its exit through any particular port of
departure; and(d) neither Party
may require that the carrier bringing a container from the
territory of the other Party into its territory be the same
carrier that takes such container to the territory of the other
Party.
Article
3.7:
Goods Re-entered after Repair or Alteration
1. Neither
Party may apply a customs duty to a good, regardless of its
origin, that re-enters its territory after that good has been
temporarily exported from its territory to the territory of the
other Party for repair or alteration, regardless of whether
such repair or alteration could be performed in its
territory.
2. Neither
Party may apply a customs duty to a good, regardless of its
origin, admitted temporarily from the territory of the other
Party for repair or alteration.
3. For the
purposes of this Article, repair or alteration does not include
an operation or process that:
(a) destroys a
good's essential characteristics or creates a new or
commercially different good; or(b) transforms an
unfinished good into a finished good.
Article
3.8
Customs Duty-Free Entry of Commercial Samples of Negligible
Value and Printed Advertising Materials
Each Party shall grant customs duty-free entry to commercial
samples of negligible 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 provided from the territory, of the other Party or 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.
Section E - Non-Tariff Measures
Article
3.9:
Import and Export Restrictions
1. Except as
otherwise provided in this Agreement, neither Party may adopt
or maintain any prohibition or restriction on the importation
of any good of the other Party or on the exportation or sale
for export of any good destined for the territory of the other
Party, except in accordance with Article XI of GATT 1994 and
its interpretative notes, and to this end Article XI of GATT
1994 and its interpretative notes are incorporated into and
made a part of this Agreement, mutatis mutandis.
2. The
Parties understand that the rights and obligations in paragraph
1 prohibit, in any circumstances in which any other form of
restriction is prohibited, a Party from adopting or
maintaining:
(a) export and
import price requirements, except as permitted in enforcement
of countervailing and antidumping orders and undertakings;(b) import
licensing conditioned on the fulfilment of a performance
requirement; or(c)
voluntary export restraints.
3.
Paragraphs 1 and 2 shall not apply to the measures set out in
Annex 3-A.
4. Each
Party shall ensure the transparency of any non-tariff measures
permitted in paragraph 1 and shall ensure that any such
measures are not prepared, adopted or applied with a view to,
or with the effect of, creating unnecessary obstacles to trade
between the Parties.
Article
3.10:
Administrative Fees and Formalities
1. Each
Party shall ensure, in accordance with Article VIII:1 of GATT
1994 and its interpretative notes, that all fees and charges of
whatever character (other than import and export duties,
charges equivalent to an internal tax or other internal charge
applied consistently with Article III:2 of GATT 1994, and
antidumping and countervailing duties) imposed on or in
connection with importation or exportation are limited in
amount to the approximate cost of services rendered and do not
represent an indirect protection to domestic goods or a
taxation of imports or exports for fiscal purposes.
2. Neither
Party may require consular transactions, including related fees
and charges, in connection with the importation of any good of
the other Party.
3. Each
Party shall make available through the Internet or a comparable
computer based telecommunications network a current list of the
fees and charges it imposes in connection with importation or
exportation.
Article
3.11:
Export Taxes
Neither Party may adopt or maintain any duty, tax or other
charge on the export of any good to the territory of the other
Party, unless such duty, tax or charge is adopted or maintained
on any such good when destined for domestic consumption.
Article
3.12:
Treatment of Certain Spirits
1.
Australia confirms that the Australia New Zealand Food
Standards Code ("the Code") allows recognition of
Chilean Pisco as a product exclusively manufactured in Chile
and that no variation to the Code is necessary for such
recognition.
2. To the
extent contemplated in the Code, Australia shall not permit the
sale of any product as Chilean Pisco unless it has been
manufactured in Chile according to the laws of Chile governing
the manufacture of Chilean Pisco and complies with all
applicable Chilean regulations for the consumption, sale, or
export as Chilean Pisco.
Section F – Agriculture
Article
3.13:
Agricultural Export Subsidies
1. The
Parties share the objective of the multilateral elimination of
export subsidies for agricultural goods and shall work together
toward an agreement in the WTO to eliminate those subsidies and
prevent their reintroduction in any form.
2. Neither
Party shall introduce or maintain any export subsidy on any
agricultural good destined for the territory of the other
Party.
Section G – Other Measures
Article
3.14:
Administration of Trade Regulations
In accordance with Article X of GATT 1994, each Party shall
administer in a uniform, impartial and reasonable manner all
its laws, regulations, judicial decisions and administrative
rulings pertaining to:
(a)
the classification or the valuation of products for customs
purposes;
(b)
rates of duty, taxes or other charges;
(c)
requirements, restrictions or prohibitions on imports or
exports;
(d)
the transfer of payments; and
(e) issues
affecting sale, distribution, transportation, insurance,
warehousing, inspection, exhibition, processing, mixing or
other use of products for customs purposes.
Section H - Institutional
Provisions
Article
3.15:
Committee on Trade in Goods
1. The
Parties hereby establish a Committee on Trade in Goods,
comprising representatives of each Party.
2. The
Committee shall meet at the request of either Party or the
Joint FTA Committee to consider any matter arising under this
Chapter, Chapter 4(Rules of Origin) or Chapter 5 (Customs
Administration).
3. The
Committee shall meet at such venues and times as may be agreed
by the Parties. Meetings may be held via teleconference,
video conference or through any other means as mutually
determined by the Parties.
4. The
Committee's functions shall include:
(a) promoting
trade in goods between the Parties, including through
consultations on accelerating tariff elimination under this
Agreement and other issues as appropriate; and(b) addressing
barriers to trade in goods between the Parties, especially
those related to the application of non-tariff measures, and,
if appropriate, referring such matters to the Joint FTA
Committee for its consideration.
Exceptions to Elimination of Import and
Export Restrictions
Paragraphs 1 and 2 of Article 3.9 shall not apply to:
(a)
with respect to Australia:
(i)
control by Australia on the exports of woodchips and
unprocessed forest products (e.g., whole logs) sourced from
native forests outside Regional Forest Agreement regions, or
plantation forests within States where Codes of Practice have
not been approved by the Australian Government, and Sandalwood
(Santalum spicatum) sourced from any State, the
Australian Capital Territory, or the Northern Territory;
and(ii)
the provisions of and measures under the Livestock Export
(Merino) Orders, made under the Export Control Act of
1982, as amended.
(b) with respect
to Chile, measures concerning the importation of used vehicles
as provided in Law No 18.483 or its successor.
Elimination of Customs Duties
Section
1:
Schedule of Australia
Customs Duties on Goods Originating in Chile
Introductory notes
I.
Australia's tariff schedule in this Annex contains the
following five columns:
(a) Code:
the code used in the nomenclature of the Harmonized System
2007;
(b) Description: the description of the product falling
under the heading;
(c) Base Rate: the basic customs duty from which the tariff
elimination program starts; and
(d) Category: the category under which the product concerned
falls for the purposes of tariff elimination.
II. The
categories which are applicable to imports into Australia from
Chile are the following:
1) Year
0: customs duties shall be eliminated entirely and such
goods shall be duty-free on the date this Agreement enters into
force.
| Entry into force | |
|---|---|
| Margin of preference | 100% |
2) Year 6: customs duties shall be removed in seven equal
annual stages beginning on the date this Agreement enters into force, and
such goods shall be duty-free, effective 1 January 2015.
| Entry into force | 01/01/2010 | 01/01/2011 | 01/01/2012 | 01/01/2013 | 01/01/2014 | 01/01/2015 | |
|---|---|---|---|---|---|---|---|
|
Margin of preference |
14.3% |
28.6% |
42.9% |
57.2% |
71.5% |
85.8% |
100% |
3) Year 6
TX: customs duties shall be duty-free, effective 1 January
2015.
| Entry into force | 01/01/2010 | 01/01/2011 | 01/01/2012 | 01/01/2013 | 01/01/2014 | 01/01/2015 | |
|---|---|---|---|---|---|---|---|
| Margin of preference | 0% | 0% | 0% | 0% | 0% | 0% | 100% |
Note: Under existing law, Australia's
most-favoured-nation rates for some textiles, clothing and footwear products are scheduled to be
reduced on 1 January 2010.
Customs Duties on Goods Originating in Australia
Introductory notes
I.
Chile's tariff schedule in this Annex contains the
following five columns:
(a) Code:
the code used in the nomenclature of the Harmonized System
2007;
(b) Description: the description of the product falling
under the heading;
(c) Base Rate: the basic customs duty from which the tariff
elimination program starts;
(d) Category: the category under which the product concerned
falls for the purposes of tariff elimination; and
(e) Observation: additional information if it
corresponds.
II. The
categories which are applicable to imports into Chile from
Australia are the following:
1) Year
0: customs duties shall be eliminated entirely and such
goods shall be duty-free on the date this Agreement enters into
force.
| Entry into force | |
|---|---|
| Margin of preference | 100% |
2) Year 6: customs duties shall be removed in seven equal
annual stages beginning on the date this Agreement enters into force, and
such goods shall be duty-free, effective 1 January 2015.
| Entry into force | 01/01/2010 | 01/01/2011 | 01/01/2012 | 01/01/2013 | 01/01/2014 | 01/01/2015 | |
|---|---|---|---|---|---|---|---|
|
Margin of preference |
14,3% |
28,6% |
42,9% |
57,2% |
71,5% |
85,8% |
100% |
3) Year 6
TX: customs duties shall be duty-free, effective 1 January
2015.
| Entry into force | 01/01/2010 | 01/01/2011 | 01/01/2012 | 01/01/2013 | 01/01/2014 | 01/01/2015 | |
|---|---|---|---|---|---|---|---|
|
Margin of preference |
0% |
0% |
0% |
0% |
0% |
0% |
100% |
4) Category W: duties on goods provided for in the items in
staging category W shall be reduced by 16,7 per cent of the
base rate on 1 January of entry into force, and by an
additional 8,3 per cent of the base rate each year thereafter
through year three. Beginning 1 January of year four,
duties on these goods shall be reduced by an additional 16,7
per cent of the base rate annually through year eight and shall
be duty-free effective 1 January 2015; and
| Entry into force | 01/01/
2010 |
01/01/
2011 |
01/01/
2012 |
01/01/
2013 |
01/01/
2014 |
01/01/
2015 |
|
|---|---|---|---|---|---|---|---|
|
Margin of preference |
16,7% |
25% |
33,3% |
50% |
66,7% |
83,3% |
100% |
5) Sugar
Category: the ad-valorem duty (6 per cent) will be
charged in accordance with the following schedule:
| Date | Ad-valorem duty to be charged |
|---|---|
| 01/01/2009 | 3,00 % |
| 01/01/2010 | 1,98 % |
| 01/01/2011 | 1,02 % |
| 01/01/2012 | 0,00 % |
For greater certainty it is understood that this phase out
schedule is only applicable to the ad-valorem duty (6
per cent) imposed by Chile to other countries for the following
tariff lines (1701.11.00, 1701.12.00, 1701.91.00, 1707.99.10,
1701.99.20, and 1701.99.90)
The specific tariff will continue to apply for the products
considered under Law No. 18.525 or its successor.
Mr Alejandro Foxley Rioseco
Minister for Foreign Affairs
Teatinos 180
Santiago
Chile
Dear Minister Foxley
In connection with the signing on this date of the Australia
– Chile Free Trade Agreement (the
"Agreement"), I have the honour to confirm the
following understanding reached by the Governments of Australia
and the Republic of Chile during the course of the negotiation
of the Agreement.
- Australia and Chile shall negotiate a memorandum of
understanding (MoU) affirming that Chile recognises that the
Australian Meat Industry Classification System (AUS-MEAT
Language) meets the aims and objectives of the Chile Beef
Grading Scheme. Moreover, this MoU will formalise
Chile's recognition of the AUS-MEAT language, and
AUS-MEAT Limited as the certifying body of this system, to
grade beef for the purpose of marketing beef in Chile.
- This MoU shall be negotiated within one year of the
Agreement entering into force.
I have the honour to propose that this letter and your
letter in reply confirming that your Government shares this
understanding shall constitute an integral part of the
Agreement.
Yours sincerely
Simon Crean
Minister for Trade
The Honourable Simon Crean MP
Minister for Trade
Parliament House
Canberra ACT 2600
Dear Minister Crean
I have the honour to acknowledge receipt of your letter of
this date, which reads as follows:
"In connection with the signing on this date of the
Australia – Chile Free Trade Agreement (the
"Agreement") I have the honour to confirm the
following understanding reached by the Governments of Australia
and the Republic of Chile during the course of the negotiation
of the Agreement.
1. Australia and Chile shall
negotiate a memorandum of understanding (MoU) affirming that
Chile recognises that the Australian Meat Industry
Classification System (AUS-MEAT Language) meets the aims and
objectives of the Chile Beef Grading Scheme. Moreover,
this MoU will formalise Chile's recognition of the
AUS-MEAT language, and AUS-MEAT Limited as the certifying body
of this system, to grade beef for the purpose of marketing beef
in Chile.
2. This MoU shall be
negotiated within one year of the Agreement entering into
force.
I have the honour to propose that this letter and your
letter in reply confirming that your Government shares this
understanding shall constitute an integral part of the
Agreement."
I have the further honour to confirm that my Government
shares this understanding and that your letter and this reply
shall constitute an integral part of the Chile –
Australia Free Trade Agreement.
Yours sincerely
Alejandro Foxley Rioseco
Minister for Foreign Affairs