CHAPTER 2

NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS

Section A: Definitions and Scope

Article 2.1: Definitions

For the purposes of this Chapter:

advertising  films  and  recordings  means  recorded  visual  media  or  audio materials, consisting essentially of images or sound, showing the nature or operation of goods or services offered for sale or lease by a person of a Party, that are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public;

Agreement  on  Agriculture means  the  Agreement on Agriculture, set  out  in

Annex 1A to the WTO Agreement;

commercial samples of negligible value means commercial or trade samples: having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar or the equivalent amount in the currency of another Party; or so marked, torn, perforated or otherwise treated that they are unsuitable for sale or for use except as commercial samples;

consular transactions means requirements that goods of a Party intended for export to the territory of another 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;

consumed means, with respect to a good: (a)       actually consumed; or

(b)       further processed or manufactured:

 (i)        so as to result in a substantial change in the value, form or use of the good; or

 (ii)       in the production of another good;

duty-free means free of customs duty;

goods admitted for sports purposes means sports requisites admitted into the territory of the  importing Party for use in  sports contests, demonstrations or training in the territory of that Party;

goods intended for display or demonstration includes their component parts, ancillary apparatuses and accessories;

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 of the importing Party as a prior condition for importation into the territory of that Party;

Import  Licensing  Agreement  means  the  Agreement  on  Import  Licensing

Procedures, set out in Annex 1A to the WTO Agreement;

performance requirement means a requirement that:

 (a)       a given level or percentage of goods or services be exported;

 (b)       domestic  goods  or  services  of  the  Party  granting  a  waiver  of customs duties or an import licence be substituted for imported goods;

 (c)       a  person  benefiting  from  a  waiver  of  customs  duties  or  a requirement for an import licence purchase other goods or services in the territory of the Party that grants the waiver of customs duties or the import licence or accord a preference to domestically produced goods;

 (d)       a  person  benefiting  from  a  waiver  of  customs  duties  or  a requirement for an import licence produce goods or supply services in the territory of the Party that grants the waiver of customs duties or the import licence, with a given level or percentage of domestic content; or

 (e)       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,

but does not include a requirement that an imported good be: (f)       subsequently exported;

(g)      used as a material in the production of another good that is subsequently exported;

(h)       substituted by an identical or similar good used as a material in the production of another good that is subsequently exported; or

 (i)       substituted by an identical or similar good that is subsequently exported; and

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 2.2: Scope

Unless otherwise provided in this Agreement, this Chapter applies to trade in goods of a Party.

Section B: National Treatment and Market Access for Goods

Article 2.3: National Treatment

1.        Each Party shall accord national treatment to the goods of the other Parties 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.

2.        For  greater  certainty,  the  treatment  to  be  accorded  by  a  Party  under paragraph 1 means, with respect to a regional level of government, treatment no less  favourable than the  most  favourable treatment  that  the  regional  level  of government accords to any like, directly competitive or substitutable goods, as the case may be, of the Party of which it forms a part.

3.        Paragraph  1  shall  not  apply  to  the  measures  set  out  in  Annex  2-A (National Treatment and Import and Export Restrictions).

Article 2.4: Elimination of Customs Duties

1.        Unless otherwise provided in this Agreement, no Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good.

2.        Unless   otherwise   provided   in   this   Agreement,   each   Party   shall progressively eliminate its customs duties on originating goods in accordance with its Schedule to Annex 2-D (Tariff Commitments).

3.        On request of any Party, the requesting Party and one or more other Parties shall consult to consider accelerating the elimination of customs duties set out in their Schedules to Annex 2-D (Tariff Commitments).

4.        An  agreement  between  two  or  more  of  the  Parties  to  accelerate  the elimination of a customs duty on an originating good shall supersede any duty rate or staging category determined pursuant to those Parties’ Schedules to Annex 2-D (Tariff  Commitments)  for  that  good  once  approved  by  each  Party  to  that agreement in accordance with its applicable legal procedures.  The parties to that agreement shall inform the other Parties as early as practicable before the new rate of customs duty takes effect.

5.        A Party may at any time unilaterally accelerate the elimination of customs duties set out in its Schedule to Annex 2-D (Tariff Commitments) on originating goods of one or more of the other Parties.  A Party shall inform the other Parties as early as practicable before the new rate of customs duty takes effect.

6.        For greater certainty, no Party shall prohibit an importer from claiming for an originating good the rate of customs duty applied under the WTO Agreement.

7.        For greater certainty, a Party may raise a customs duty to the level set out in its Schedule to Annex 2-D (Tariff Commitments) following a unilateral reduction for the respective year.

Article 2.5: Waiver of Customs Duties

1.        No Party shall adopt any new waiver of a customs duty, or expand with respect to an existing recipient or extend to any new recipient the application of an existing waiver of a customs duty, that is conditioned, explicitly or implicitly, on the fulfilment of a performance requirement.

2.        No Party shall, explicitly or implicitly, condition the continuation of any existing waiver of a customs duty on the fulfilment of a performance requirement.

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FULL TEXT OF TPP AGREEMENT

 

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