Free Trade Agreement between the Republic of Korea and the Republic of Chile

str. 1Chapte r1:Initial

Provi sion s

Chapte r2:GeneralDefinitions

Annex 2.1

str. 1Chapte r3:National TreatmentAnd MarketA ccessForGoods

Annex 3.5

Annex 3.9

Chapte r4:RulesOf Orig in

Chapte r5:Customs Procedures

Chapte r6:Safeguard Measures

Chapte r7:Anti - D umping And Countervailing Duty Matters

Chapte r8:Sanitary And Phyt osanitar y Measures

Chapte r9:Standards - RelatedMe asures

Annex 9.10

str. 1Chapte r10:Inves tment

Annex 10.9.6

Annex 10.11

Annex 10.20

Annex 10.41.2

Annex 10.41.4

Annex 10.43

Chapte r11:Cross - BorderTradeInSer vices

Annex 11.9

Chapte r12:Telecomm uni cat i ons

Annex 12.1

Annex 12.5.8

Chapte r13:Temporary EntryForBusines sPersons

Annex 13.4: Temporary EntryFor Business Persons

Annex 13.4.1

Appendix13.4.I.1

Appendix13.4.I.3

Chapte r14:Competiti on

str. 1Chapte r15:Government Procureme nt

Annex 15.1

Annex 15.2

str. 1Chapte r16:Intellect ualPropert y Rights

Annex 16.4.3

Annex 16.4.4

Annex 16.4.5

str. 1Chapte r17:Transpar ency

Chapte r18:Administr ation Of The Agreement

str. 2Annex18.1.1

Annex 18.1.2(c)

Annex 18.1.3(c)

Annex 18.2

Chapte r19:DisputeSet tlem ent

Annex 19.2

Annex 19.10

Annex 19.7

str. 2Chapte r20:Exceptions Chapte r21:Final Provisi ons

ANNE X 3.4 :E limina tionOf Customs Duti es

str. 2Section B :ScheduleofChil e Section C :ScheduleofKo re a

ANNE X I:Reservat ionsforE xisti ng Measures and Liberalizati on C omm it ments

str. 2(Chapters 10 and 11) ScheduleofChile ScheduleofKorea

ANNE X II:Reservations forFuture Measures

str. 2(Chapters 10 and 11) ScheduleofChile ScheduleofKorea

ANNE X III: Quantita ti ve Restric ti ons (Chapter11)

str. 2ScheduleofChile ScheduleofKorea

FR EE TRADE AGREE MENT BETWEEN THE GO VERN ME NT O F THE REP UBLI C O F KOREA A ND THE GO VERNMENT O F THE REPUBLI C OF CH I LE

str. 2The GovernmentoftheRepublic ofKorea ('Korea') and theGovernm entoftheRepublicof Chile ('Chile'), hereinafter referr ed toas'thePart ies';

Co mmitt ed to strengt henin g thespecia l bonds of f ri ends hip and cooper ationbetwee n their countries;

Sharing t he belie fthat a fr ee trade agr eement shall producemutualbenef its t o eac h Par t y and contribute to theexpansionand developmentof world tradeunder t he multila t er al t ra ding system embodied in the Mar rak esh Agreement Establ ishin g the World Trade Organiz ation('theWTO Agreement');

Build ing on t heirrespective rig hts and obl igations under t he WT O Agreement and other multilate ral, re gional and bilateral ins truments ofcooperation, including A PEC;

Resolve d topromote reci procaltrade and investment throughtheestabli shmentof clear and mutually advantageous trad e rul esand theavoidance oftrade and inves tmentbarriers ;

Recogni zing thatthisAgreeme nt should be implemented wit h a view toward raising the standard of living , creatin g new work opportunit ies, and promotingsust ainabl e development in a manne rconsistent withenvironment alprotection and conservat ion;

Co mmitt ed topromotingthepubli c welfare within eachofthei rcountries; and

Desiring tostrengthen theparallel developmentof market economy and democracy with i n thei rcountr ies;

HAVE AGRE ED asfollows:

Article 1.1

Establi shmentOf The FreeTradeArea

str. 3The Parties tothis Ag reement, consist entw ithArt icle XXI V of theGeneralAg reementon Tariffs and Trade1994 ( 'GAT T') and Arti cleV of t he G eneralA greementon Tradein Services ('GATS'), which arepart oftheWTO Agreement,herebyestabli sha free trade area.

Article 1.2

Objectiv es

str. 31. The objectives ofthis Agreem ent,as elaborated more specifi cally throughits principles and rules, inclu dingnational tre at ment,most- favoured - nation treatment and transparency, areto:
2.

str. 4(a) encoura ge expansion and diver sif ication ofreciprocal trade betweenthePartie s; - (b) eliminate barr ier s totrade in, and f aci li t atethecross - bordermovement of,goods and servi ces between t he territori esoft he Part ies;
- (c) promoteconditions offair competition i n thefree tr adearea;
- (d) substantially in cr easein vestm entopportunit iesbetweenthete rritori esoftheParties;
- (e) provideadequateand eff ectiv e protecti on and enforcementof intel l ectua l property righ tsineachParty's te rrito ry ;
- (f) create effective proc edur esf ort he implementation and appl i cation ofthis Ag reement , forits join t administ rat ion, and fo rtheresolution ofdisputes; and
- (g) establish a framework f or f urther bilateral and m ult il ateral cooperation in ordert o expand and enhancethebenef it softhis A greement . 2. The Parties shall inter pretand appl y the provisions of thisAgreement in th e light of the objec tives set outinparagr aph 1 and inaccordance w ith t he appl icable rules ofinternat iona llaw.

Article 1.3

Relation To OtherInter national Ag reements

str. 4The Parti es affirmthe irexisting rig htsand obligations w it h respect to each otherunder theWTO Agreement and other intern ational agree m ent s tow hichbothParties arepart y. 3. In theeventof any inconsistency between t hi s Agreement and such ot heragreementsunder paragraph1, thisAgreement shall prevail to the exten t of t he inconsi stency, excep t as otherwise prov idedinthis Agreem ent .

Article 1.4

Success ionOf Treaties Or Internati onalAgreements

str. 4Any re f erenceinthi s Ag re ement toany other treaty ori nt ernat ional agreementshall be made int he same termstoits successor t reaty orint ernational agreementtow hichtheParties areparty.

Article 1.5

Extent O fObligation s

str. 4The Parti es shallensur e t hatallnecessary measuresaretakeninordertogiveeff ecttoth e prov isi onsofthis A gr eem entint heir r es pective ter ri to ries.

CHAPTER 2 :GENE RAL DE FINIT IONS

Article 2.1

D efinition sOf GeneralAp plication

Cou ntry - Specific Defi niti ons

str. 6Forpurposes ofthis Agreement,unl essoth erwise specified:

citizen means:

str. 6withre specttoChile, a Chileanas defined inA r t icle 13 of thePolit i calC onstitution of the Republi c ofChil e ("Constitución Polí tica de laRepúbli ca de C hile) ;and withrespect toKorea,a Ko r ean asdefin ed i n Articl e 2 oftheConstitution oftheRepublicof Korea and its relevant law.

terr itory means:

str. 6with respectto Chile,the lan d, m ar itime, and ai r space under itssovereign t y, and the exclusiv e economic zone and th e conti nental shel f overwhich itexer cises sovereign righ tsand jurisdiction inaccordance withinternat ional law and its domestic law;and with respect to K orea , the land,m ar itime, and airspace under i tssovereignty , and tho se maritimeareas, including t he seabedand subsoil adj ace nt to theout er li mit of the terr it oria lseaoverwhich itexer cis es sovereign rights or jurisdict ioninaccor dance withi nt ernational law and its domesti c law.

CHAPTE R 3 :NATIONAL TREAT MENT A ND MARKET A CCESS FOR GOODS

Section A -Definitions An d Scope A nd Coverage

Article 3.1

Defin itions

str. 6Forpurposes ofthis Ch apter:

advertising films means recordedvi sual media, with or w ithout sound- trac ks,consi st in g essen tiall y ofimagesshowingt he nature oroperat ionofgoodsorservices of fere d forsale orlease by a personestablished or res identi n th e territory of any Party, pr ovidedthatthefilmsareof a ki nd suitable forexhib ition to pr ospectiv e cust om ers but not for broadcast t o the generalpublic, and prov idedth attheyareimport ed inpacketsthat eachcontain no m oret han one copy ofeachfilmand that do notf orm part ofa l arg erconsig nment;

agri culturalgoods m eans tho se goods r eferredto in Arti cle 2 of the Ag reement on Agriculture, which ispartoft he WTO Agreement;

comm ercialsamples of negli gible value means com mercialsamples having a value , individually orintheaggregateasshipped, ofnotmore th an one U .S.

str. 8dollar, ortheequivalent am ount int he curr ency ofeit heroft he Parties, orsomarked,tor n,perforated orotherwise treated that theyare unsui table forsale orf oruseexcept ascomm ercial samples;

consumed means:

Article 3.2

Scope And Coverage

str. 8ThisChapter shall be applied tothet radeingoodsbetweent he Par t ies.

Section B -National Treatment

Article 3.3

National Treatment

str. 8Each Partyshall acco rdnati onalt rea tmenttothegoods oftheot herPartyi n accordancewithArticle II I of GATT , including it s interp re ta tivenotes,and to thisend, Article IIIof GATT and its inte rp ret ativ e notes, or any equiv alent provision of a successor agreementtowhich bothPar ties are party, arein corporated int o and made part oft hisA greement . For thepurposeofparag raph1,each Partyshall granttot he goods oftheotherPartya treatment no lessfavourable thanthemost f avour abletreatment grantedby th atPartytoits own l ik e or directly compe titiv e orsubstitutable goodsofnati onalorigi n.

Section C -Tariffs

Article 3.4

Tariff Elimination

str. 8Exceptasot herwiseprovided inthis Agreement,nei ther Party ma y increase any exis ting customsduty oradoptany customsdut y on a good. Exceptas otherwise pr ovi ded i n t hisAg reement, each Partyshall progressively eliminate its cust oms duties on or iginating goodsinaccordan cewithi tsTari ffElimination Schedulese toutinAnnex 3.4. Ifatany moment a Par tyreduce s its most- favoured - nati on customsduti es tonon- Parties forone or more goods included in t he Agreem ent,t he Part iesshallconsult to consider adjusting thecustoms duties applicable toreci pro calt rade. Upo n re questof a Party ,t he Partieshall consul ttoconsider accelerating theelimination ofcustoms duties set outintheir TarifEli mination Schedules. The agreementreachedpursuan t to paragraph4 regarding the accelerate d elimination of cus toms duties on an originating good shall be putinto effect inaccordanc e wit h A rt icl e 18.1and eachParty's applicable legal proced ure s,and sha ll prevail overany other dut y rate orst agingcateg ory ,determ ined pursuant toits Tariff Elimi nati on Scheduleforthegood. 1 An operati on or processtha t ispartof t he product ion or assemblyof an unfinished good intoa finished good isnota re pairoralter ation oftheunfinis hed good;a componen tofa good isa good that may be subject torepair oralte ra tion. Exceptasotherwise prov idedi n th isA greement ,either Partymay adoptormaintain importm easures t o alloc atein - quotai mportsm ade pur su anttoa tari ff r atequotasetoutinAnn ex 3.4, prov id ed that such measures do not have trad e r estric tiveeffects on importsadditional to thosecaused by the imposition oft he tarif frat e quota.

Article 3.5

TemporaryA dmissio n Of Goods

str. 91. Each Partyshallgran t duty - freetempor ary admissi on, including exemption from fee s as specified inA nnex 3.5f or:
2. (a) professional equipment necessaryfor car ry ing out t he businessactivity , tradeor professi on of a busin ess person who qual ifies for temporary entrypursu ant to Ch apte r13,
3. (b) equipmentf or thepressorforsound ortel evision broadcasti ng and ci nem atographic equipment,

(c) goods import ed forsports purpose s and goods intend ed fordi spl ay or demonstr ati on, and

(d) commercialsamplesand advert ising films, admitted f rom theter rito ryoftheoth erParty, regar dless oftheir origin and rega rdless ofwhetherlike ordirect lycompetitiv e orsubsti tu table goods areavailable i n th e terr itory oftheParty. 2. Except as other wise pr ovided in t hisA greement,neither Partymay impose any condition upon theduty - freetempor ar y adm is sio n of a good re ferred t o insubparag raph1(a), (b)or (c), other thantherequirement that such a good:
2. (a) be admitted by a nati onalorre sident oftheother Party who seekst emporaryentry;
3. (b) be usedsolely by orunderthepersonal supervision ofsucha personinth e exercis e of th e business activity, tr ade orprofe ssionofthat per son;

(c) notbe soldorl easedwh il e inits territory;

- (d) be accompaniedby a bond inan amount no great erthan110 percentofthecharg es th atwould otherw isebe owed on entr y or f inalimportation, or by anotherf orm of securi ty, releas ableon expor tation ofthegood,exceptt hata bond forcustomsduties shall notbe required f oran or igi nating good;
- (e) be capable ofidentifi cation when export ed;
- (f) be exported on thedepartu reof t hatper son or withinsuch otherperiodof timeas i s reasonably related toth e pur poseofthetemporary admission; and
- (g) be importedinno grea ter quantit y thani s reasonabl e f orits intended use. 3.

str. 10Except as other wise pr ovided in t hisA greement,neither Partymay impose any condition upon t he duty - freetemporaryadmissi on of a good referre d toinsubparag raph1(d), othe r thanthe requirement that sucha good:

(a) be admitted solel y f or thesolic itation oforder s forgoods or servi cesprovid ed from t he territor y oftheoth erParty ora non- Part y; (b) notbe sold,leased or puttoany use otherthanexhibition ordemonstration whilein its territory;

(c) be capable ofidentifi cation when export ed;

(d) be exportedw i thi n such a periodas isreasonably related to the purpo se of the temporaryadmission; and

(e) be admitted inno great erquantity thani s reasonable f ori tsintended use . 4. Wh erea good i s tempor arily adm itted duty - fr ee under paragraph1 and any condition the Part y imposesunderparagr aphs2 and 3 hasnotbeenf ulfilled, a Part y may impose:

(a) the customs dut y and any ot her charge t hat would be owed on entryor f i nal importatio n ofthegood;and

(b) any applicable crim inal, civi loradministrat iveresponsib il it iesthat thecircumst ances may wa rrant. 5. SubjecttoChapter s10 and 11:

(a) each Partyshallall ow a container used in intern at i onal traff ic,w hich entersit s terr it ory from theterrito ryoftheotherPart y,toexit i tsterritory on any routeth atis reasonably related toth e economicand promptdepartu reofsucha cont ainer;

(b) neither Partymay require any bond orimpose any penalty orchargesolel y by rea son ofany difference betweentheportofentry and theportofdeparture ofa container ;

(c) neither Partymay condi tio n therelease of any obligation, i ncluding any bond,th ati t imposesinresp ectoftheent ryofa cont ainer into its t er r itory on its exit throu gh any particula rportofdepartu re; and

(d) neither Party may require that thecarrier bringing a container from theterritory ofthe ot herParty into its ter ritor y be thesame carr ier that takes thecontainer tothete rri tory oftheot herParty.

Duty- FreeEntryOf C ertain CommercialSamplesOf Negligible Value And Pri ntedAdvertising M at eri als

str. 11Each Partyshall grant duty - f reeentry tocom mercial samplesofnegligible ornon- commercial valu e,and t o printed advertising m at eria l s, importe d fr om theterr itory oftheoth erParty, regardless of thei rorigin, butmay require that :

- (a) such samplesbe i mporte d sol elyforthesoli ci t at i on of orders forgoods,or ser vi ces providedfrom theterrit ory,of t he otherPar tyor a non- Party, regardless of whether th ey areoriginating goods,orwhetherse rvices areprovidedfrom theterritory oft he ot herParty ora non- Party ;or

(b) such advertising mater ia lsbe i mportedinpacket s that eachcontain no more thanone copy ofeachofsuch materials and tha tneith ersuchmaterials norpackets form part ofa larg erconsignment.

Article 3.7

Goods Re- EnteredAfte rR epair Or Alt erat ion

str. 111. Neither Partym ay applya customsdutytoa good,regardles s of it s orig i n,that re - enters its terr itory after that good hasbeen exported orifit w asundera temporaryexit from its territory t o the terr itory oftheother Party forr epair oral teration, regardless ofwhethersuchrepair oralteration could be performedinits territo ry . 2. NeitherPartym ay apply a customs duty to a good, regardless of itsorigin, imported temporari lyfrom theter rito ryoftheother Par tyforrepai roralterat ion.

Article 3.8

Customs Valuation

str. 11The Customs Valuati on Agreement shal lgovernthecustomsvaluation rules appl i ed by the Parties totheir reciprocal trade.

Section D -Non - TarifMeasures

Article 3.9

I mp ort A nd ExportRestr ictions

str. 111. Except as other wise pr ovidedin thi s Agreement,neit her Partymay adoptor maintainany proh ibition or restricti on on t he importation of any good of theotherPartyor on th e exportat ionor saleforexportof any good desti ned forthet er ritory of t he otherParty, exceptin accordancewit h Article XI of GAT T, in cl udingits i nt erpreta tivenot es,and tothi s end,A rticle XI of G AT T and its inte rp ret ativ e notes, or any equiv alent provision of a successor agreementtowhich bothPar ties are party, arein corporated int o and made part oft hisA greement . 2. The Partiesundersta nd thatthe rig ht s and obligations under G ATT, incorpor ated by paragraph 1 prohibit, inany cir cum st ancesinw hichany other form ofr estriction isprohibited, expor t price re quirements and,exceptaspermitt ed inenforcement ofcountervailing and antidumping orders and undertakings ,importprice r equirements.

str. 123. In theeventth ata Part y adoptsor maint ainsa prohi bit ionor rest riction on theimportation fr om orexport ation toa non- Partyofa good,nothing int hi s Agreement shall be construed toprevent thePartyfrom:

(a) limit ingorprohibit ingtheimportation f rom theterri toryoftheotherPartyofsucha good ofthat non- Par ty; or

(b) requiring as a condition of expor tof such a good of thePartytotheterritory of the ot herParty, that thegood notbe re - exportedtothenon- Party, directly or ind ire ctl y, with outbeingcons umed int he terr it or y oftheother Party. 4. Intheeventtha ta Partyadopt s ormaintains a prohibit ionorrestr iction on th e import at ionof a good fro m a non- Par ty , theParties, upon request of theotherParty, shal l consult w itha view to avoidingundue interference withordistortion ofprici ng,marketingand dis tribu tionarrangements in theothe rPart y. 5. Paragraphs 1 thr ough 4 shall notapplytothemeasuressetoutinA nnex 3.9.

CustomsUserFees

str. 12Cu stoms userfeesshall be lim ited inamount t o theapproximate costofservices rendered and shall notrepres entan indirect prot ecti on fordomesti c product s ora taxation ofimportsorexports for fiscal purpos es .They shall be basedon specific rat es that correspond tothereal valueof t he service rendered.

ExportTaxes

str. 12Neit herPartyma y adoptorm ainta inany duty, taxorotherchargeon theexpor tofany good totheterritory oftheotherParty ,unless suchduty, taxorchargeisadoptedormaintain ed on such a good when destined fo rdomesticconsumption.

Emergency Claus e ForAg ricu ltu ral Goods

str. 121. Notwithstand ingChapter6 ofthis Agreement and Art icl e 5 oftheAgreement on Ag riculture, if ,give n t he particular sensit iv ity of theagricultural markets, a product originat in g ina Partyisbeing importedintotheoth erPartyi n such i ncreasedquantities and undersuch conditions as tocause or threaten tocauseserio us in juryor disturbance inthemarketsofl ikeordir ectly competitive products oftheotherParty, that Part y may t ake appropr iat e measuresundertheconditions and inaccordance withtheprocedures laid down inthis Articl e.
2. Ifth e conditions setoutinparagraph 1 aremet,t he import ingParty may:

(a) suspend the fu rth er reduct ion of any customs dut i es on t he productsconcerned providedforunderth isCh apt er; or

(b) increase thecust oms dutyon t he pro ductt o a level which does notexceed th e lesser of:

(i) themost- favou red - nati on cust oms duty; or

- (ii ) thebasiccusto ms dutyt o which thesuccessive reductions aretobe appli ed, pursuanttoits Tariff Eli mination Schedule. 3. Beforeapplyi ng themeasureasdefined underparagraph 2,thePartyconcernedshall refer the matterto the Commission f or a thorou gh examinationof the si tuation, with a view to seekinga mutually acceptable solutio n.Iftheother Par tyso reques ts, thePar t iesshall holdconsu lt ations within the C om mission.If no solution is f ound within30 days of the requestfor such consul tations, safe guardmeasuresm ay be appli ed. 4. W hereexcep tional circumstances require immediateacti on,theimporting Partym ay t ake the measuresprovided forinparag raph2 on a transitional basi s without complyingwitht he requirements of paragraph3 fora maxim um per iodof 120 days.Such measuresshall notexceed what isstrictly necessary to limit or redress thein juryor disturbance. The importing Partyshall in form t he other Part y immediately. 5. The measurestakenunder t hisA rticle shallnot exceed what isnecessaryto re medy t he di f fic ul ties thathave ar isen. The Partyi mposing the measure shallpr ese rve the overall levelof preferences grantedfo r theagri cultur alsector .To achievet hisobject ive,thePart iesmay agreeon compe nsation fortheadverseeffect s ofthemeasureon thei rtrad e,includi ng th e period duringw hi ch a transiti onalmeasureappli ed inaccordance withpar agraph4 isinplace .To this effect, theParties shallhol d consultation s to reacha mutual ly agreedsolution. I f no agreementisreachedwithin30 days,theaffected expor tin g Part y m ay,after notificat i on totheC om mission, sus pend t he application ofsubstantiall y equiv al entconce ssions underthis Chapter. 6. Forpurposes oft hisArti cle :
- (a) 'serious inju ry ' sha llbe under stoodtom ean a significant overall impairmentinthe posit ion of the producer s as a who le of the likeor directly com peti tiveproducts oper ating ina Party; and
- (b) 'threat of ser io us in jury'shall be understood to mean ser iousi njurytha t isclearly imminent based on fa ct s and not merely on allegation s, conjecture or remote possibi lity .

Committee On TradeInGoods

str. 131. The Parties herebyestabli shtheCommitteeon Tradei n Goods,com prising repr esentat iv esof each Party . 2.

str. 14The Committee shal lensuret he effective implementation and adminis trati on ofthis Chapter, Chapter4,Chapter5 and U nifo rm Regulations. 3. The Commit teeshall havethefoll owing functi ons:
4. (a) to revi ew and recommend to the Commission issuesrelating to market access , in cluding theapplicati on ofnon- tari ffmeasures; and
5. (b) topromote tr ade ingoods betwee n theParti es throughconsult at io ns and studies on matters relating tomarketaccess, incl udingtheper iodsestablished inA nnex 3.4, in ordertoacce lerate theta riff el imina tio n process.

ChileanMeas ures

str. 14Notwit hstanding Arti cle3.9, Ch ile may cont i nue oradoptmeasuresr el atedtoimport s ofused vehicles.

CHAPTER 4 :R ULES OF O R IGIN

Article 4.1

Defin itions

TemporaryA dmissio n Of Goods

str. 14The temporaryadmissionof goods f rom Korea specif iedin subparagraph1 of Article 3.5 shallnot be subject t o t he payment of thefeesestablished in Art icle 106 of t he ChileanCustoms Ordina nce (Ordenan za de Aduanas) contained in D ecreew ithForce of Law 2 of theMinistryof Fina nce,Official Gazette,

str. 15July21,1998 ('Decret o con Fuerzade Ley 2 delMinisterio de Hacienda, Diario Oficial, 21 de jul iode 1998').

ImportAnd ExportMeasures

str. 17thevalueofrenewablescraporbyproduc t.

(ii ) for non- orig in ating materials, if inc luded under subpar agraph (a),the following expensesmay be deductedf ro m thevalueofthematerial:

a. t he costs off reight ,i nsurance, packingand al lother costs incurr ed in tr ansporti ng themateri altotheloca tion oftheproducer;

b. duties ,taxesand customs brok eragefeeson thematerial paidinthe te rr itory of one orbothoftheParti es,other t han duties and tax est hat ar e waived,refunded, ref undableorot herwiserecoverable, inc luding cr edit agains tdutyorta x paidorpayable;

c. t he costs of wa st e and spoil age resul ti ng from theuseofthemater i al intheproductionof t he good,lessthevalueof renewablescrapor by- products; and d. t he costs of or igi nati ng m aterials used intheproduction of thenonoriginating materia lintheterri tor y ofa Party.

Article 4.2

Originatin g Goods

str. 171. Exceptasother wisepr ovid ed inthis Chapter, a good shal loriginate intheterri tor y of a Party whe re:

(a) thegood iswho lly obtained orproducedenti rely intheterr it oryofone orbothofthe Parties, asdefined inArti cle4.1;

(b) each of thenon- or igi natingmaterials used intheproduct ionof thegood under goes th e appl icablechange i n tariff classificat i on se t out in Annex 4 as a re sultof producti on occurring entirel y intheterritory ofone orbothoftheParties, orthegood ot herwisesatisfies th e appli cablereq uirementsof thatA nnex where no change in tariff class ification is required,and th e good satis fies all other applica ble requir em entsofthis Ch apte r;

(c) thegood isprodu ced entir elyintheterritory ofone orbot h oftheParties exclusiv el y from originating materials pursuanttoth isChapter; or

(d) exceptfora good prov idedforinChapters 61 through63 oftheH armonisedSystem, th e good isproducedentire lyintheter ritory ofone orbot h oftheParties butone or more of t he non- orig ina tin g materials t hatareused i n t he production of thegood do notundergoa changeinta riff class ificat ionbecau se:

(i) thegood was importedin tot he territor y of a Partyinan unassembledor a disass embled form butw asclassifi ed asan assembl ed good pursuant toRule 2(a)oft he GeneralRu les fort he Interpretat i on oftheHarmonisedSystem,or

(ii ) theheadi ng f orthegood pro videsforand speci fical lydescribes bot h th e good itself and itspartsand isnot f ur thersubdivided intosubheadings, or the subheading forthegood prov idesfo rand specif ically describes boththegood itself and its parts, provide d that thereg ion alvaluecontent of thegood,determined inaccorda nce w i th Article 4.3 ,isnotless than45 percent ,where t he build - down method i s used,or 30 per cent,where the buil d- up m ethod isuse d and thatthe good satisfies allother

applica blerequirements of this Chapter. However, ift he appli cableruleof Ann ex 4, w herethegood isclassi fied, specif iesa different amount of regional value - content requirement, thensucha re quirement shall be applied. 2. For thepurposeofthis Chapter ,theproduction ofa good from non- originating m at eri alsthat undergoa changeintariff classification and satisfy otherrequirements pursuant toAnnex 4,shall be made enti relyintheterrito ryofone orbothofthePart iesand theregional valuecont entofthegood shall be met enti rely intheterri tor y ofone orbothofthePar ti es. 3. Notwithstand ingt he requirem entsofthis Article, goods shall notbe conside redoriginating if theyresult exclusivel y fr om oper at ionsunderA rt icle 4.13car r i ed out in t he ter ritory of th e Parties, whe n i n t hos e operations non- or igi nat ingmateri alsareused.

Article 4.3

RegionalValueContent

str. 18Whe n a regional valuecontentisrequired todeterminei f a good isorig inat i ng,each Party shall providethat ther egio nalval ue content of a good m ay be calcul atedon t he basis of one or the other ofthefollowing t wo methods:

Method 1:Build - down m et hod



Method 2:Build - up method where

RVC istheregion alval ue content, expr essedasa percentage;

AV istheadjus tedvalue;

- VNM isthevalueofnon- ori gi nating materials usedby theproducer intheprodu ction ofthe good;and
- VOM isthevalueof orig inating materials used by t he producerin theprod uctionof the good.

Article 4.4

Inter mediateMaterials

str. 19Any sel f - producedm at eri althat isusedintheproducti on ofa good m ay be desig natedby th e prod ucer of thegood as an inte rmedi atemater i alforthepurposeof calculating t he regional value conte nt of thegood underA r ticle 4.3,providedthatwhere theintermediate material issubject toa reg ionalvalue - contentrequir em ent, no ot her self - produced mater ialsubject to a reg ionalvalue conte ntrequ irementused intheproduction of that int ermediate m aterial may itself be designated by theproducer asan inter mediatematerial .

Accumulation

str. 191. Originatingoods or m ater ials f rom theterri toryof a Partyincorporated to a good in the terr itory oft he other Party shall be considered origina t ingfrom theterritory ofthelatter Party . 2. For the pur pose of est ablishing thata good isor iginat ing,the producerof a good ma y accumulateone'sproduction w i thth e produ ct i on intheterritory ofone orbothofthePart i esby one ormore producers, ofm at eria lsinco rporat ed int he good,so that theproduction of tho se materials is considered as done by thatpr oducer,providedt hatthegood complieswith thecriter iaset out in A rticle 4.2 .

Article 4.6

De M inimis

str. 191. A good that does notunderg o a change int ar iff cl assificat ionpursuant toAnnex 4,shall be considered originating i f th e valueof all non- originati ng materials usedini tspr oduct ionthat do not undergochangeintari ffcla ssific ati on doesnotexceedeight percentoftheadjusted valueofthegood determined pursu anttoArticle 4.3. 2. Paragraph1 sha llnot applyto a non- originat ingmaterial used intheproductio n of a good prov idedforinChapters 1 t hrough24 oftheHarmonized System,unless thenon- orig inating material is providedfor in a dif fe rentsubheadingfro m thatof the good for which the originis being determined underthis Arti cle. 3. A good provi ded fo r in Chapters 50 through63 of the Harmonized System thatdoes not originate becausecertain fibre s or yarnsused in t he production of thecom ponentof thegood t hat determinesthe tariff classifi cati on of the good do not undergo the appli cabl e change in tarif f clas sifica tion setoutinAn nex 4,shall nonethel essbe consi deredtooriginate ifthetotal we ight ofal l such fibres or yarnsi n t hat component isnot more t han eightper centof thetotal weight of that component.

Article 4.7

Fungibl e Goods A nd Materials

str. 191. Forpurposes ofdetermi ningwhethera good isan orig i nating good:
2. (a) wh ereorigina ting and non- ori gin ating fungible materials areusedintheprod ucti on of a good,thedetermination ofwhethert he mater ial s areor iginating need notbe made th rough th e identification of any specific fungible m aterial, butshall be determined on thebasisof any of theinv ent or y m anagement methods setout in theU niform Regulations; and
3. (b) wh ereorigin ati ng and non- orig inati ng fungible goods arecomm ingledand expor te d inth e same form,thedeterm ination shall be made on thebasi s ofany oftheinv entory managem entmethodssetoutint he Uniform Regulations. 2. Once a decisi on has been tak en on theinventory managem entmethod,this method shall be usedthrou ghoutthefiscal year.

A ccessories, SpareParts And Tools

str. 201. Access ories, spare par ts or toolsdel iv ered with t he good thatform par t of st andard acces sories, spar e parts or tools of thegood,shall be considered as originat ingifthegood originates and shallbe disregarded i n deter mining w hetherallthe non- originating materia ls used in the prod uctionof the good underg o theappl icabl e change in tar if f cl as sificat ion set out in Anne x 4, prov idedthat:
2. (a) theaccessorie s,spareparts ortools ar e notinvoiced separate lyfrom thegood;and
3. (b) thequantities and valueoft he accessories, sparepart s or tools arecustomaryforthe good. 2. Ifthegood issubj ecttoa r egional value - content requirement, thevalueof theaccessories, spar e parts ortools shall be takeni ntoaccountasoriginating ornon- originat ingmateria ls, asthecase may be,incalculating th e reg ional valuecontent ofthegood.

Article 4.9

I ndir ectMaterials

str. 201. An indirect materi alshall be consider ed t o be an ori gi nat i ng materi alw ithou tregard towhere itisprod uced.The valueofit s materia lsshall be thecosts regi stered intheaccounting records ofthe prod ucerofthegood. 2. The valueof an i ndirec t materi al shallbe based on t he G enerally Accepted Accounting Prin ciples applicable inth e territ oryofthePartyinwhich thegood i sproduced.

Packagi ng Materials A nd Container s For Retail Sale

str. 21Packagingmaterials and containe rs in w hich a good ispackaged forretail saleshall, i f clas sified witht he good,be di sregar ded indetermining whetherall t he non- origin ati ng materials used intheprodu ction oft he good under go theappl icable changeinta ri ffclassificat ionsetoutinAnnex 4, and,ift he good issubjectto a regi onal value - cont ent requirement, the valueof such packag i ng materials and container sshall be takeni ntoaccountasoriginating ornon- origin ating materia ls, asthe casema y be,incalculating ther egiona lvaluecont entofth e good.

PackingMaterials And Containers ForShipment

str. 21Packingmaterials and containers inwhich a good ispackedforshipmentshall be disregarded indete rminingwhether :

- (a) the non- originating materials used i n the productionof the good under go the applicable changeintar iff classi fication setoutinA nnex 4;and
- (b) thegood satisfies a re giona lvalue - content requirem ent.

Transhipment

str. 21A good shallnot be conside r ed to be an or iginatingood by reasonof havingunderg one prod ucti on thatsatisfies t he r equirements of Art icle 4.2, if, subsequent tothat production, thegood outside thet erritories ofthePartie s:

- (a) undergoesfur therpr oductionor any oper at i on, otherthan unloading , reloading, cr ati ng,packingand repacking orany ot heropera tion necessary topr eserve i tingood condition ortot ranspo rt thegood toth e terri toryofa Party; or
- (b) does not remain under th e control or observation of the customs autho rity in th e terr it oryofthenon- Party .

Non - Qualifying O perations

str. 211. A good shall notbe consider ed tobe originat ingmerelyby reasonof:
2. (a) operations or proc essest hatassur e thepreservat ionof goods ingood conditions for th e purposeoftransportat ionorstorage;
3. (b) operations orprocessestofacil i tate shipmentortransportat ion; or
4. (c) operations or processes r elating to packagingor presentati on of t he goods fortheir respect ivesal e.

2. Operation sorprocesse sunderparagraph 1 shall incl ude, inter alia :

- (a) airing, ventilation, dryi ng,ref rigera tion, freezing ;
- (b) cleaning, wa shi ng,sieving, shaking, selection, classi fication or gradi ng,pi ckingout , mixing, cutting;
- (c) peeling, unshelling or unflaki ng, grainremoving,removal of bones,crushingor squeezi ng,macerating;
- (d) elimination of dustf ro m brok en or damaged parts, appli catio n of oil, paintforrust tr eat ment orother prot ect in g materi alst hereof;
- (e) testing orcalibra tions, division ofbulkshi pm ents, assembleintopackag es,adher ent of marks,labels or disti nctiv e si gns on theproduct s or packing; packing, unpacking orrepackag ing;
- (f) dilution w ith waterorwithany other aqueous, ionised orsalted soluti on;
- (g) thesimpleassemblyofgoods,f ormation ofset s;
- (h) salifying, sweeten ing;
- (i) slaughter ofanimal s;
- (j) disassembly; and
- (k) thecombinat ionofone ormore ofthese operations.

I nter pretation And Application

str. 22Forpurposes ofthis Ch apter:

(a) thebasis fortariff classif icat ioninthis Chapteristh e HarmonisedSystem;

(b) wh ere applyi ng subpa rag raph 1(d)of Article 4.2,the det ermina ti on of whether a headingor subhead ing under t he H ar monised System provides f or and speci fically describe s botha good and its parts shall be made on thebasis ofthenom encl ature of th e headingor subheadi ng and ther elevant Sectio n or Chapte r Notes,inaccor dance witht he GeneralRulesfo rtheInter pret ation oftheHarm onisedSystem;

(c) inapplying t he Customs Valuation Agreement forthedetermination oftheorigin ofa good underthis Chapter:

(i) theprinciples of theCust om s Valuation A greementshal l applytodomesti c transacti ons, with such modificationsas may be required by th e cir cumstances ,aswould applytoin ter national t ransactions;

(ii ) the provision s of th is Ch apt er shalltake precedenceover the Customs Valuation A gree ment tot he extent ofany difference; and

(iii ) thedefinition s inArti cle4.1shall takepr ecedenceoverthedef ini tions inthe Customs Valuation Agreementt o t he extent ofany di fference; and

(d) allcos tsreferred tointhis Chapte r shall be r ecordedand maintained inacc ord ance withtheGenerally Ac ceptedAccountingPrinciples applicabl e inthet erritory ofthe Partyinwhich thegood ispr oduced.

Articl e 4.15

str. 22Con sul tations And Modifications

1. The Parties shallconsult reg ular ly to ensur e thatthisChapterisadministered effec t i vely, unif ormly and consistent lywit h thespirit and objectives ofth isA greement, and shall cooperate inthe administration fthis Chapter inaccor dancewithChapter5. 2. A Party that consi ders that thisChapter requiresmodification to t ake in to accoun t developmentsinproductio n pr ocesse s orother matters may submittoth e ot herParty f orconsid eration a pr opose d modification alongwithsuppor tingration ale, any studies and any appropriate actionthat needstobe takenunderChapter 5.

C HAPT ER 5 :CU ST OMS PRO CE DURES

Article 5.1

Defin itions

Article 5.2

Certificate And Declarati on Of Orig in

str. 231. The Parties shallest ablish, by theentryintofo rceof this Agreement,a single form forthe Certificate ofOriginand a sing lefo rm fortheDeclaration ofO rigi n,which may t hereafter be rev is ed by agreementbetweent he Par ties.

str. 242. The Certifica teofOrig in, refe rredtoinparagraph 1,shal lcert ifyt hatgoods t hatareexported fr om t he territory ofone Par tytotheterritory oft he other Partyquali fyasorigin ating. The C er t i f ica te will have a duration oft wo yearsfrom th e dateon which theC ertif i cate was signed. 3. Each Party shall requi retha ta Cert i fi cateofOriginf ora good importedinto i tst erritor y must be com pletedand sig ned in theEnglish language, fort he pur pose of requesting prefe r ential tariff tr ea tment. 4. Each Partyshall:

(a) require an exporter inits ter rito rytocomplet e and signa C ert if icate ofOrig i n forany exporta tion ofa good f orwhich an importer may claimpreferenti altariff treatment on importatio n ofthegood into t he te rrit ory oftheother Party;

(b) providethatwhere an expor terin i tsterr i toryi s not thepro ducer of thegood, the exporte rmay complet e and si gn a Certificate ofOriginon thebasis of:

(i) its knowledgeofw het herth e good qualif iesasan originating good;

(ii ) its reasonable re liance on theproducer's written represent ation tha tthegood qualifies asan originati ng good;or

(iii ) theDeclaratio n ofOri ginre ferred toinparagraph 1. 5. The D eclaration ofOriginreferred toinparagraph 1 shoul d be completedand signedby t he prod ucersofthegood and pr ovidedvoluntar ilytotheexpor ter. The Declarat i on will have a duration oftwo yearsfrom thedat e on which it was signed . 6. Each Partyshall provide that a Certif icate ofOrig int hathasbeencom pl et ed and signedby an exporter intheterritor y oftheotherPart y isapplicable toa single importation ofa good intoit s own terr itory. 7. For any orig inati ng good t hatisi m portedintot he territory ofa Par tyon or afte rthedateof entryint o forceof thi s Ag reement,each Partysha llaccepta Cert ificate of O rigin thathas been completedand sig ned pri ortot hatdateby theexporter ofth atgood. 8. Each Partysha llm ake all ef forts toes tablish, accordi ng t o its domesticleg islation, thatthe Certificate of O rigin com pleted and signedby theexporter iscert ifi ed by competentgovern mental authoriti esorthebody em powered by thegover nment.

Article 5.3

Obligations RegardingImport ations

str. 241. Each Party shall requ ire an importer init sterritory that claimspreferenti altar iff treatment for a good importedinto its t err itory from theterritory oftheother Partyt o:

(a) ma ke a wri tt en decla rati on,i n thei mportat iondocument established inits legislat io n, base d on a valid Certi ficat e ofOrig in, that thegood qualifies asan originat inggood;

(b) have theCertifi cateofOrigininits possession atthetimethedeclarati on,referred to insubparagra ph (a), ismad e;

(c) provide, upon request ofth atParty's customs administ rat ion, a copy oftheCertificate ofO rigin; and

- (d) promptlymak e a corr ect ed declaration and pay any duties ow i ng,where thei m porte r has rea son to believe that a Certifi cateof Originon which a declarat ionwas based containsinformation t hat i s not correct. When the importercomplieswith such oblig ations, theimporter shall notbe penalised. 2. Each Partyshall pr ovidethat, when an import er in its terr i torydoes not comply with any requirement es tablished int hisC hapter, theclaimedpreferent ialtariff treatment shall be deniedf or theimportedgoodsfrom thete rri tor y oftheothe rPart y. 3. Each Partyshall pr ovi de th at ,where a good would have qual if iedasan ori ginatingood when itwas importedinto thet err itory oftha tPartybutno claimforpreferential tari fftrea tmentw asmade atth att ime,theimporter ofthegood may, no later thanone yearafter thedateon which thegood was imported, applyfora refu nd of any excessdut iespaidas theres ultof thegood not havin g been accordedwit h prefer entia ltar iff treatme nt, on presentat ionof:

(a) a written declara ti on tha t the good qualified as an originating good at thetime of importatio n;

(b) a copy oftheCertificat e ofOrigin; and

(c) such otherdocumentation r elating totheimport at i on of thegood as thatPartyma y requir e.

4. Each Partysha llprov idethatan importercla iming pref erential tarif f tr eatmentf or a good importedin toits terr itor y m aintain inthat t erritory, f or five year s aft ert he dateof importa t io n of the good orforsuchlongerperiod asth e Par tymay specify, suchdocumentation, including a copy ofthe Certificate ofO rigin, asthePartymay re quire relati ng tot he importation oft he good.

Article 5.4

Obligations Regarding Export ations

str. 251. Each Partyshal lpr ovidethat an exporter i n its terri tory, or a producer ini tsterritory that has prov ideda copy of a Declara tionof Origintothatexporter pur suantt o A rticle 5.2,shall providea copy oft he Certificat e orDeclar atio n ofOrigi n toi tscust oms administration upon request. 2. Each Party shall prov ideth atan exporter ora producer ini t s terr itory who hascompletedand signeda Certificate or Declar ati on of Origin, and who has reasontobeli eve thatth e Certificate or Decla ra tionof Origi n contains i nformat ion thatis not cor rect, notifies promptly , in writ ing,its cust oms adminis tration and all persons, towhom theCertificate orD eclar at i on ofOrigin was givenby theexporter orproducer, ofany change that couldaf f ecttheaccuracy orvalidit y oftheCertifi cateor Decla ra tion, dependi ng on thecase. Upon compliancew ithsuch an obligation ,neither theexporter northeproducer shall be penalised fo rpresenti ng an incorrec tCert i fi cation orDeclaration ofOri gin. 3.

str. 26Each Partyshallprov ide thatthe customs administr ationof the exporting Partynoti f y in writing tothecustomsadm inistration oftheimporti ng Partyregarding thenotification mentio ned in paragraph 2. 4. Each Partyshall prov idethat a fal secertification by an exporter or a producerinits territory that a good tobe expor tedtotheterrito ryoft he other Partyqualifies asan originating good sha ll have thesame legalconsequ ences,with appropriate modificat ions, as would applyto an importer in its terr itory fora contr aventionof itscustoms laws and regulations regar ding the making of a false statement or represent ati on.Furthermo re,each Partymay applysuch measure s as th e circumstances may wa rran twhere an export eror a producerinit s territory fails tocomply withany requir em entof this Chapter . Page 26

5. Each Partyshall pr ovi de th atan exporter ora producer ini t s terr itory that completes and signs a C ert ificate or Decla rat io n of Orig in shal l maintain in it s terr i tory, forfiveyearsafter thedateon which t he Certificate orDecla ration ofOrigi n w assignedorforsucha longer period asthePar tyma y specify, all records re lati ng t o theor ig inofa good forwhich preferent ial t ariff tr eatmentwas cla i med int he t erritory oftheoth erPar ty, i nclu dingrecords associated with:

(a) thepurchase, costand valu e of,and payment for, thegood that isexpor tedfrom it s terr it ory;

(b) thepurchase, costand valueof,and payment for, allmaterials, inclu ding i ndi rec t materia ls, usedintheprodu ct ionoft he good that isexported from it ster ritory; and

(c) the production of the good in t he fo rm in w hich the good isexportedfrom it s terr it ory.

Article 5.5

Except ions

str. 26Each Partyshall prov idet hata Certi ficate ofOriginshall notbe required for:

(a) a commercialimportati on of a good whose val ue does not excee d US$1,000 or its equiv alent am ountint he Part y' s curr ency,orsuchhigheramount asitmay estab lis h, exceptthatitmay requi re tha t theinv oiceaccompanying theimportation include a stat ement certifying tha tt he good qualifies asan or ig i nating good,

(b) a non- commer cial import ation of a good w hose valuedoes notexceedUS$1,000 or itsequivalent amount i n the Party' s curr ency, or such higheramount as itma y establish, or

(c) an importation ofa good f orwhich theParty into w hose ter r itory thegood isimporte d hasw aivedtherequirement f ora Certificate ofOrigin, provided thatthe importati on does not form partof one or m ore i m portations thatma y reasonably be consider ed tohavebeenundertaken orarranged forthepurposeofavoid ingthe certifica tion requirement sofArticles 5.2and 5.3.

Article 5.6

Invo icing By A N on- Party Operator

str. 26Whe n a good tobe traded isinvoic ed by a non- Partyopera tor ,theproducer orexporter oft he originati ng Partyshall notify, inthefi el d t it led"observations" oftherespective Cert if ic ateofOrigin, that thegoods subjec ttodeclar ati on sh all be invoi cedfrom that non- Party, and shall noti fy t he nam e, corporatename and addressof the oper ator thatwilleventually invoicethe opera t ion to i ts destinati on.

Confidentiality

str. 271. Each Partyshallm aintai n, in accordancewith itslaw, the confident ia lity of confidential busin ess informatio n col lectedpursuantt o thisChapterand shallprotect such inf or mation from disclosure that couldprej udicet he competi tive position ofthepersons providing th e inform ation. 2. The confiden tialbusinessin formationcol lectedpursuantto thisC haptermay only be disclosed tothoseauthorities responsible fortheadministration a d enforcement ofdetermina tions of origin, and customsand r evenuem atte rs .

Article 5.8

OriginV erifications

str. 271. The importing Partymay request t he exporting Part y to provideinformation reg ar ding the origin ofany importe d good. 2. For purposesof determ iningwhethera good importedi ntoit s territory from theterrit ory of the otherPartyqualifies as an orig inating good, t he importingPartymay, throughitscustoms administration, conductverificat ionsole lyby means of:
3. (a) written questionnaires and requests for requi red inf ormationto an exporter or a producerintheterritor y oftheothe rParty;

(b) visits tothepremises ofan exporter ora producer intheterr itory oft he other Partyt o revi ew therecords ref err ed to in Articl e 5.4.5and observethefacili ti es used in the producti on of t he good,or tothatef fec tany fa ci l i ti es used int he production of t he materia ls; or

- (c) such other procedur e ast he Part ies may agree. 3. The exporter or pr oducerthatreceives a questionnai re pursuant to subpa rag raph 2(a)shal l answerand return itwithina peri od of 30 days from thedateon which itwas r eceiv ed.During this period theexporter orpr oducerm ay,inonlyone opportunity, request inwriting totheimporting Party an exte nsionoftheori gina lperiod, notexceeding 30 days. 4. In the caset he export er or producerdoes not return the questionnaire correct ly answered within thegivenperiod orits extensio n,thei m port ingParty may deny preferential tar i f f treatment. 5. Priort o conducti ng a veri fication visit pursuant tosubparagraph 2(b), a Partyshall, t hrough its customsadministr ati on:
- (a) deliver a writtenotifi catio n ofits intention toconductthevisito:

(i) theexporter orpr oducerw hosepremises aretobe vi si ted;

(ii ) thecustomsadministration ftheother Par ty ;and

(iii ) ifrequested by t he othe rPart y,theem bassyoftheotherPartyinthete rri tory oftheimporting Part y pr oposingt o conductthevisit; and

(b) obtainthe written consentof the exporter or producerwhose premise s are to be visited.

str. 286. The notification referred t o inparagraph 5 shall include:
2. (a) theid entity ofth e cust oms admini strati on issuing thenotificat ion;

(b) thename oft he expor te rorpr oducerwhose premises aretobe visited;

(c) thedateand placeoftheproposedverificat ionvisit;

(d) theobject and scop e oft he pr oposedverification visit, incl udi ng specific refe renc e to th e good th atist he subject oft he ver if ication;

(e) thename sand titl esoftheofficial sperforming thever ification visit; and

(f) thelegal autho rity fort he ver ification visit . 7. Wh erean export eror a pr oducer has notgiv en its written consenttoa proposedverif i cation visit within 30 days after therece ipt of notificat ionpursuant toparagraph 5,thenotifying Partym ay deny preferential tariff t rea tmenttoth e good that would have beenthesubject oft he visit. 8. Each Partysha llprov idethat ,upon receipt of notification pur suanttoparagraph5,such an exporter or a producermay, wit hi n 15 days of receiving the notification, postponethe propo sed ver ifi catio n visit fora per iodnotexceedi ng 60 daysf rom thedateofsuchr eceip t, orforsuchlonger period astheParties may agr ee.However, this may be done inonlyone opportuni ty .For this purp ose, this extensio n shall be not ified tothecustomsadministration ftheimporting and exporting Parties. 9. A Party shallnot deny preferent i al ta rifft r eat m ent to a good bas ed solelyon the postp onement ofa verif ication vi sit pursuant toparagr aph 8. 10. Each Partyshal lper mit an exporter ora producerwhose good isthesubjec tofa verification visit by theother Party todesignate two observers tobe present during thevisi t, provided tha t:
5. (a) theobservers do notparticipate ina manner ot herthanasobservers; and
6. (b) thefailure of theexporter or producertodesignate observers shal l not result i n the postponementofthevisit. 11. Each Partyshall, throug h it s customs administrati on,where conduct ing theverification f origin involving a reg ional val ue conte nt, De Minimis calculation orany otherpr ovision inChapter4 to which Generally AcceptedAccountingPri nci plesmay be relevant, apply such principle s as are applicable intheterri tor y oftheParty fro m which thegood was exported. 12. Aftertheconclu si on of a verif icat ion, thecustomsadministration conducting theverification shallprov id e theexporte r or prod ucer whose good isthesubject of theverif ication with a w ritten determination ofwhetherthegood qualifies asan or iginating good,including finding s offact and the lega lbasi s forthedeter mination. 13. Wh ereverification s by a Par tyindi catea pattern of conductby an export eror a produ cerof fa lseor unsupported repr esenta tions t hata good import ed i ntoi tsterr itory quali fies as an or igi nat i ng good,thePartymay wit hholdprefer ential tariff treatm enttoidentical goods exported orprod uced by such a pers on until that pers on est ablishes complia ncewithC hapter 4. 14. Each Party shall pr ovid e th atwh erei tscustomsadministrat iondetermines tha ta cer tain good importedin toits territory doesnotqual ifyasan originati ng good basedon a tariff classification ora valu e applied by thePartytoone ormore mater ials usedintheproduc t ionofthegood,which differs fr om the tariff classif ication or valu e appliedto the materials by the otherParty,the Party 's

determination shall notbecome eff ec tive unti li tnoti fies inwriti ng boththeimporter ofth e good and t he exporter that complete d and sig ned theCertifi cat e ofOrigin forthegood ofits dete r mination. 15. A Partyshall not apply a determination made underparagraph14 t o an impor tat ion made before theeffective dateoft he deter mination where:
2. (a) the competent author ities of the otherPartyhas i ssued an advanced ruling under Article 5.9 or any ot her ruling on thetariff class if ication or on thevalueof such materia ls, or has givenconsisten t treatment to theentryof themateri alsunder the tariff cl assification orvalueatissue, on which a personisentitled torel y;and
3. (b) the advanced r uli ng, oth er rul ing or cons istent treatmentwas given priorto notificat ionofthedetermination. 16. Ifa Partydeniespref eren tial t ar ifft reatmentto a good pursuantt o a determina ti on made underparagraph14,itsha llpostpon e theeffective dateof thedenial fora periodnotexceeding90 days w heretheimporte r of the good, or the personwho completedand sign ed theCerti f ica t e of Orig in for the good, demonstrates tha t i t has rel ied in good fai t h to itsdetrim ent on t he t ariff clas sifica tion orvalueapplied tosuchmateri als by thecustomsadministr ation oftheother Party.

Article 5.9

Ad vancedRulingsOn Deter minati onsOf Ori gin

str. 291. Each Partyshall, thr ough its compe tentauthor ities, providefortheexpeditious issuance of written advanced ruli ngs,prio r to theimportation of a good intoit s territory, t o an importer in its terr itory or an expor teror a produce r inthet erritory oftheotherParty, on thebasis of thefac tsand circ umstancespres entedby suchan impor t er, an exporter ora producer ofthegood,concern i ng:
2. (a) wh ether a good qualifi esasan or iginating good underChapter4;
3. (b) wh ethermateria ls importedfr om a non- Partyused in the production of a good undergoan applicab lechange intariff cl assificat ionsetoutinAnnex 4 asa resu ltof producti on occurring entir elyinth e t er rit oryofone orbothoftheParties;
4. (c) wh ethera good satisfies a regionalvalue - contentrequi rement under eit her the builddow n method orthebuild - up method setoutinChapter4;
5. (d) forthe purp ose of determ iningwhether a good sati sfi es a regiona l val ue- cont ent requir em entunderChapter4,t he appr opri atebasis ormethod forvaluetobe applied by an exporter ora pr oducerinthete rritory oftheother Party, inaccordance wit h the principles oftheCustoms ValuationAgreement,forcal culating theadjusted valu e of th e good oroft he materi alsusedi n thepr oduction ofthegood;
6. (e) forthe purp ose of determ iningwhether a good sati sfi es a regi onal val ue- cont ent requir em ent under C hapter4, t he appr opriatebasisor method for reasonably alloc atingcosts, in acc ord ance wit h th e allocation methods setout in theU ni fo rm Regulations, forcalcu lating thevalu e ofan intermedia t e material ;
7. (f) wh ethera good thatre - ent er s its ter ritory after thegood has been exportedfrom its terr it oryt o theterritory oftheot herPar tyfo rr epair oralteration qual if iesforduty fre e tr eat ment inaccordanc e withArti cle3.7; or
8. (g) such other matter sast he Parties may agr ee.

str. 302. Each Party shall adoptormaintain procedure s f ortheis suanceofadvancedru l i ngs,including a detailedes cription ofth e inf or mationr easonably r equired toprocess an appl ication fora ru l ing. 3. Each Partyshall prov idet hatits competentauthoritie s:

(a) ma y,atany timeduringthecourseofan eval uation ofan appli cat io n fo ran advance d ruli ng,req uest supplementa lin formation from thepersonrequest ingtheruli ng;

(b) shall, after ithas obtain ed allnecessary i nformationfrom thepersonr equesting an advanced ruling, iss ue t he ruli ng withi n the per iods speci fi ed in the U ni f orm Regulations; and

(c) shall, wh ereth e advanced r ulingisunf avourable tothepersonr equesti ng it, prov ide tothat personwitha f ull explanati on ofthereasons fortherul ing . 4. Subjectt o parag raph 6, each Partyshal l apply an advanced rul i ng to importations intoits terr itory ofthegood f orwhich ther ulin g w asreq uested, beginni ng on thedateofits issuanc e orsuch a later dateasmay be speci f iedi n theru ling. 5. Each Partyshall pr ovi de to any personreque sting an advanced rul ing thesame treatment , incl udi ng th e same i nterpr etationand application of the provisions of C hapter 4 reg arding a determination of or igi n,as i t pr ovi ded t o any ot her personto whom itissuedan advance d ruling , prov idedthat thefact sand circumstance sareidenti calinall m ateri alrespect s.
6. The issuing Party may mod ifyorr evokean advancedruling :
4. (a) iftheruling i s basedon an er ro r:

(i) offact;

(ii ) inthetariff classific at i on of a good or a materi alth atisthesubject of t he ru ling;

(iii ) inth e applicati on ofa regi onalvalue - content requi rementunderChapter4;or

(iv ) intheapplicat i on of theru lesfordetermining whethera good that re - enters its te rrit ory after thegood hasbeen exported from its ter ri torytothete r r it ory of the ot her Partyf or r epairor alter ationqual ifi es forduty - fre e treatment underArticle 3.7;

(b) if the rulin g is not in accordancewit h an interpretation agreed by the Parties rega rdi ng Chapter3 orC hapter 4;

(c) ifthereisa change in the m aterial fact s or circumstances on which the ruling is base d;

(d) toconfo rm witha mod ificat ionofChapter3,Chapter4,this C hapterortheUniform Regulations; or

(e) toconformwitha judi ci aloradministrative d cision ora changeini tsdomestic law. 7. Each Partyshallprovide thatany modificat ion or rev ocat ion of an advanc ed rulingis ef f ective on thedateon wh icht he m odif ication orrevocat ionisissued, oron such a later dateasmay be spec ified therein, and shall notbe applied toimport ati onsofa good that have occur redprior totha t date, unless thepersont o whom theadvancedruling w asissued hasnotactedinaccord ancewit h its t er ms and conditions. 8. Notwithstand ing parag raph 7, the issuing Par ty shal l postponethe effective date of such mod ifica tionor revocatio n for a periodnot exceedi ng 90 days where the person to whom the advancedruling was i ssueddem onst rat esthat it hasrelied ingood f aith toi tsdetr imenton that ruling. 9. Each Partyshall provi de tha t where its competentauthor itie s examines there gionalvalue conte ntof a good forwhich i thasis suedan advancedruling pursuant tosubparagraphs 1(d), (e)and (f ), it shall evaluate whether :
3. (a) theexporter orprodu cerhas compliedwiththetermsand conditions oftheadvance d ruli ng;
4. (b) the exporter's or prod ucer' s operations are consistent w iththe material factsand circumstances on which theadvancedrul ingisbased; and
5. (c) the supporting data and com put ation s used in appl ying the basi s or m ethod for calcula ting valueoralloca ting costwere correct inall materi alrespects. 10. Each Partyshall prov ideth atw hereits competentaut hori tydet erminesth atany requirem ent in paragrap h 9 has not been sa tis fie d, i t may m odify or revoke the advanced rulingas the circ umstancesmay warrant . 11. Each Partyshall provi de that , whe re th e personto whom an advanc ed rul i ng w as issued demonstrate s thatitused reasonablecar e and act ed in good fait h i n presenting the factsand circ umstances on which the ru lingwas based,and where the com petentauthority of a Party determines thattheruling was based on incorrect information, thepersont o whom theruling was issued shall notbe subj ecttopenalties. 12. Each Partyshallprov ide tha t where itissuesan advanced rul ing to a per son thathas misrepres entedor om itted mater ialfacts or circums tanceson which such a rul ing isbased or has faile d to actin acco rdancewit h thetermsand condi tions of t he ruling, thePartymay applysuch measuresasthecircumstances m ay warrant. 13. The Partieshall provi de that thepersontowhom theadvancedrulingwas issue d m ay useit onlyw hil e thematerial fact s or cir cumstancesthat were thebasi s of i tsissuance arestill present. In this case, th e persontowh om theadvanced ruling w asissued m ay present t he neces saryinfor mation fortheis suingautho rity topr oceedpursuant toparagra ph 6. 14. A good that issubject toan origi n verification process orany instance

str. 32ofrev iew orappealin theterritory ofone oftheParti esmay notundergoan advancedruling.

Review And Appeal

str. 321. Each Party shall gran tsubs tantially thesame rights ofrev iew and appealofdete rminations of origin and advancedr ul ingsby its customsadministration, asitprovides toimporte rsinits territory, toany person:
2. (a) wh o completesand signsa Certifi cateofOriginfora good tha thasbeen thesubject ofa det ermination ofor ig inpur suantt o A rticle 5.8.12; or
3. (b) wh o hasrecei ved an advancedrul ingpursuant toA rticle 5.9. 2. Each Partyshall pr ovi de t hatt he rights ofreviewand appealreferred toinparagraph 1 shall incl ude acce ssto :
5. (a) at leastone levelof administrativ e review independentof the official or office responsi bleforthedeter mination underreview; and
6. (b) in accordancewith itsdome sticlaw, ju dici al or quasi - judicial review of the determination ordecisi on takenatthef in all evelofadm inistrative review .

Penalti es

str. 321. Each Party shall m ai ntai n m easures imposingcriminal, ci vil or administ rativ e r esponsibilities forviolation sofits lawsand r egula tio nsrelat i ng t o t hisChapt er. 2. NothinginArticles 5.3.1 (d ),5. 3.2, 5.4.2, 5.8 .4, 5.8.7 or 5.8.9 shal lbe cons tru ed toprevent a Part y from applying suchm easures asthecircumstances may warrant.

Uniform Regulations

str. 321. The Partieshall establish and implement, throughtheir respect ivelawsorreg ulati ons,by the dateofentry i ntofo rceofthis Ag reement, oratany ti me thereafter upon agr eement ofthePartie s,the Unifo rm Regul ationsregar di ng the i nterpret at i on, application and administration of Chapter 3, Chapter4,this Chapterand other matte rsasma y be agr eedby thePart ies. 2. As of the entr y intofor ce of the U niform Regulations , each Par ty shallimplement any mod ifica tionoforaddition toth e Uniform Regulations no later than180 days after thePart iesagree on suchmodification oraddition, orsuch other period asthePart i esmay agree.

Co operati on

str. 321. Each Party shall not if y theother Partyofthefol l owing det ermina t ions, measuresand rulings, incl udi ng tothegreates textent pr acticable thosethat arepros pective inappli cation:
2.

str. 33(a) a determinati on of origin issued as theresult ofa ver if ication conduct ed pur sua ntto Article 5.8,once th e instances of r eview and appealpursuant to Article 5.10have been exhaus ted; (b) a determinati on ofori gint hattheParty isaw areiscontrary to:

(i) a ruling issu ed by thecustomsadministra tionoft he ot herPartywithrespect to the t ariff cl ass ific ati on or val ue of a good, or of materials used in the producti on ofa good,ort he reasonabl e allocat ionofcosts where calculating thevalueofa good,th ati sth e subj ectofa determ i nat ionoforigin; or

(ii ) consistent treatm entgiv en by thecustoms admini str ationof theothe r Part y wit h res pecttothetariff classif ication orvalueofa good,orofmaterials used in the production of a good, or the reasonable al loca tionof costswhere calculati ng the valueof a good, thatisthe subje ct of a determination of origin;

(c) a measure es tablishing or sig nificantly modifyingan administrative policythatis likel y toaf fect future det ermi nat ionsoforigin; and

(d) an advancedru li ng,ora r uli ng modifyingorrevo kingan advancedruling ,purs uantt o Article 5.9. 2.

str. 33The Partieshall cooper ate:

(a) in th e enforc em ent of theirres pective customs - relatedl aw s or reg ula ti ons implementing this Agreem ent ,and underany customs mutualas sistance agreementor ot hercustoms - related agreementtowhich theyareparty;

(b) to theexten t practicab leand forpurposesof facilitating theflow of trad e between th em, i n such custo ms - rel at ed matte rs as the collect ion and exchange of sta ti stic s rega rdi ng the importatio n and export ation of goods, the harmonisationof documentation used i n trade, thestandardisat ionofdataelements ,theaccepta nce of an international datasyntaxand th e exchangeofinfor mati on;

(c) to the extentpracti cable,in the storageand t ransmi ssion of cus t oms - relate d documentation;

(d) intheorigin verificat ionprocess of a good,f or w hichthecus toms admini stration of th e i mportingParty m ay r equest theoth erParty's customsadminist ratio n tocooperate inthis process ofverifi catio n ini tsown t erri tory;

(e) tosearchfora cer ta inm echanismwit h thepurposeof det ecting and prev enting the illicit shipmentofgoodsarri vi ng fr om one oftheParties orfrom a non- Party; and

(f) to jointly or ganisetrain in g programmes in customs re lat ed i ssues,which shoul d in cludet raining for custo ms offi cia ls as well as userst hat directly participate in customsprocedures.

Review

str. 34In the se cond year f rom the dat e of entryintoforceof thisAgreement,thePart i es shal l examine and revise, ifdeem ed necess ary by t he Parties, the system regarding the Certificate or Decla ra tion ofOrigin underthis Chapter.

CHAPTER 6 :SAFEGUARD MEASUR ES

Article 6.1

Saf eguardMeasures

str. 341. Both Parties maintaintheir right s and obl igations under Article XIX of GATT and the Ag re ement on Safeguards, which i s part oft he WT O. 2. Actionstakenpursua nttoArticle XIX of G ATT and A greementon Safeg uardsshal lnotbe subject toChapter19 ofthis Agreem ent.

C HAPTER 7 :ANTI -DUMPIN G AND COUN TERV AILING DUT Y MATTERS

Article 7.1

An ti - Du mping And Counter vaili ng Duty Matter s

str. 341. The Parties maint ai n their r igh tsand obl igations underArticl e VI of GATT, theAg r eem ent on Implementation of Article VI of GAT T ('Agreementon Anti dumping') and theA greementon Subsidies and Counter vailing Measures ,w hicharepart oftheWT O Agreement. 2. Antidumping actionstaken pursuantt o ArticleVI of GAT T and the Ag ree m ent on Antidumping, orcounterv ailing acti ons takenpursuant toArt icle VI ofGATT and theAgreement on Subsidies and Counter vailing Measuressha ll notbe subject t o Chapter19 ofthis Agreement.

CHAPTER 8 :SANITARY AND PHYTOSA NITA RY MEA SURE S

Article 8.1

Defin itions

str. 34For purposesof this Chapter, thedefinitions and ter m s established underthefol lowin g shall be appli ed:

- (a) Ag reementon t he Application ofSanitary and Phytosanitary Measures,wh ichispart oftheW TO A greement(SPS Agreement);
- (b) Office Intern ational desEpizooti es(OIE);
- (c) International Plant Protect ionConvention (IPPC); and
- (d) Codex A limentarius Com missi on (COD EX).

G eneral Provisions

str. 341. This Chapte r applies t o allsanit ary and phytosani tarym easures, w hich may , direct ly or indirec tly, affectrade bet ween thePar ties. 2. The Partieshall, throug h mutualcooper ati on,facilitate agri cultural, fishing and forest trade withoutsuch tradeposi ng a sani tar y or phytosani taryrisk, and agreeto preventtheintroduction or spreadofpestsordisease s,and t o enhanceplant and animalhealth and foodsafety. 3. The framework of r ulesand di sciplines t hat guide the adoptionand enforcementof the sanita ryand phytosa nitary measuresincluded inthis Chapte risdeemed tobe consistent withtheSPS Agreement. 4.

str. 35Any othersanit ar y or phytosanitary matte r which i s not described in th isChapt er shall be dealt withinaccordance withth e SPS Agreement.

Article 8.3

RightsOf The Parties

str. 35The Parties may, inaccordancewiththeSPS Agreem ent:

- (a) adopt,maintainor apply any sanitary or phytosanitary m easurewhenever iti s necessary forthepro tect ionofhuman, ani mal orplant life orheal thinthei rterrit orie s inaccordance withth isC hapt er; and
- (b) applytheir sanit aryor phytosanitary measurestotheextent necessary toachievean appr opriate level ofprot ection.

Article 8.4

Ob lig ations Of The Partie s

str. 35Each Partyshall ensur e th atany san itary orphytosan it arymeasuret hatit adopts, m aint ain s or applies:

- (a) isneither appli ed ina manner t hatconstitutes a disguised restriction on t rade ,norhas th e purposeor the effect of cr eatingunnecessaryobstacles to tr ade between t he Parties;
- (b) isbased on sci entif icpri ncip lesand isnot maintainedw ithout sufficient scientifi c evidence, except aspr ovidedf orinArti cle5.7oftheSPS Agreement;and
- (c) doesnotarbitra rily or unju st if iably dis cr iminat e betweeni tsgoods and similar goods oftheoth erParty, orbetween goods oftheother Party and similar goods ofany other country, where identica lorsimilar condit ionsexist.

I nter nati onalStandards An d Harmonization

str. 351. Withoutreducing thelevel of protect i on of human, animalor pl antlife or health, each Party shallbaseits sanitary and phytosani tarymeasure s on relevant international standards, guidelines or recommend ations, wh eret hey exist, witha vi ew t o seeking harmonization. 2. Notwithstand ing par agr aph 1, t he Parties may adopt a sanitary or phytosanita ry measure offer inga level ofprotecti on other th an thelevel that would be achieved througha measurebasedon an in ternational standar d,gui deli ne or recommendati on,includi ng a more stringent measuret han the fore going,ifthereis a scien tific justifi cation, or as a consequenceof the lev el of sanitary or phytosani taryprotecti on the Par ty determinesto be appropriate in accordancewith the relevant prov isi onsofArticle 5 oft he SPS Agreement. 3. For purposesofachievi ng a hig her degreeof harmoni zation ,thePart iesshall, tothegreatest exten t possible,cooperate i n t he development of internat ional standa rd s, guidelinesand recommend ations to allas pectsof sanitary and phyt osani tarymeasures,and followthestandards, guideli nesand recomm endations se tby thefol lowingorganizati ons:
4. (a) on plant healt h issues, theI

str. 36PPC;
5. (b) on animalhealth issu es,theOIE; and
6. (c) on foodsafety i ssue s,theCODEX. 4. For matters notcovere d by t he international organizati ons lis tedinparag rap h 3,theParties may consid er,as agree d by the Parties, the standards, guidelines and rec omm endations of other rele vantinte rnational organ izati onsofwhich bothPart iesaremembers.

Article 8.6

Equiv alence

str. 361. Each Partyshallacceptthe sanitary and phytosani tarymeasures of the oth er Partyas equivale nt,even ifth es e m easuresdiffer from its own measures,iftheexporting Partyobje cti vely demonstrate stotheother Part y t hatits measuresachieve theother Party's appropriate level ofsanitary orphyt osanitary prote cti on. 2. For purposesof ensu ringthatsanitary and phytosanita ry measuresof theexporting Party consist ently meet theimport i ng Part y's requi r ements,theexporting Par tyshall, upon r equest, provide the importingPartywith r eas onable access t o itst err itory for the verification of itssyst ems or proc eduresofinspecti on,te st ingand other relevant procedures.

Article 8.7

RiskAssessmentAnd Determinat ionOf A ppropr iate Sani t aryAnd Phytosanitary LevelOf Protection

str. 361. The Partiesha llensur e t hattheir sani taryand phytosanitary mea suresare, as appropr i ateto thecircumstances, basedon an asses sment oftherisks tohuman, animalorplant life orhealth, tak i ng into acco unt relevantrisk ass essment guidelines and techni ques develop ed by the relevant inte rna tional organiz at ions. 2. The Partieshall ,inasses singrisks and determining a sanitary orphytosanitary m easu re, take into accountavailable sc ientif icevidenceand other factors, suchas:

- (a) theprevalence ofpests ordiseases;
- (b) theexis tenceofpest -ordisease - free areas;
- (c) thereleva ntecologi caland envi ronmental conditions;
- (d) theeffectiveness oferad ica tion orcont rol programs;
- (e) thestructure and org anization ofsanitar y and phytosanitary services; and
- (f) thecont rol, m oni to ring, diagnosis and otherprocedures ensuring the safe t y of the product. 3. Inass ess ingrisk s t o animalorplant l ife or heal thand determining themeasuretobe applied forachiev ingtheapprop riate l evelofpr otection from suchri sks, theParties shall tak e into account the following rele vanteconomicfacto rs:
- (a) thepote ntial damag e int erms ofloss ofproduc tion orsales i n theeventoftheentr y, establishment orspreadofa pestordisease;
- (b) thecostofcontro loreradicat ionintheterr itory oftheimport ingParty; and
- (c) therelative cost - eff ecti venessofalte rnative approaches tolimiting risks. 4. The Parties shal l, inestablishi ng thei rappropriate l evelsof protection, tak e intoaccountthe objec tive ofminimizingnegati ve tr ade effects and shall, w i ththepurposeofachieving consistency in theapplic ation ofsuch l evel s ofpr ot ec ti on,avoidarbitrary orunjusti fi abledist in ctions th atmay result indiscrimin ation orconstitute a disguised restriction on thetrade betweent he Parties. 5. Wh erea Partydeter mines tha tavai l ablescie nt ific inf ormation isinsuffi cien t, it may adopta prov isi onalsanit aryorphytosanit arym easure on thebasis ofavailable relevant i nformation, incl uding infor mati on from relevant internation alorganizations and from sanitary orphytosanitary measuresof theotherPartyand any ot her countries. The Partysha l l,once ithas t he info rmat ion sufficient to completet he ass essment,completeitsassessmentand,where appropriat e,review the provisional sanita ryorphytos anitary measure with ina reasonable period oftime.

Article 8.8

Adaptation To RegionalConditi ons,Including Pest -O rDisease - FreeA reas And AreasofLow PestorDisea sePreva lence

str. 371. The Partieshall adaptits sanita ryorphytosanitary m easures r elat i ng toanimalorplant pest ordise asetothesanitary orphytosan itar y characteristics oft he areaof origi n and dest i nati on of the goods.Wh en assessi ng th e characteri stics ofan area, t he Part iesshall takeint o account , inter alia ,the leve lof prevalence of spec ific di sea ses or pest s,theexistence of eradi cat ionor control pr ogrammes, and appropriate criteri a or guidel ine s, w hich may be developed by the re lev ant international organizat ions. 2. The Parties shall recog nize, in particul ar accordingto re levantinterna tio nal standards, the concepts of pest - or di sea se- fr ee are as or areasof low pestor disease prevalence. When determining such areas,the Partiesshallconsider factors, such as geographicall ocation,ecosystems, epidemiological surveillance, and theef fectiveness ofsanitary orphytosanitary controls intha tarea. 3. The Partydecla r ingthatan areainit s terr itory isfreefrom or l ow prevalence of a specific pestordisease shall prov id e thenecessary evidence thereof inordertodemonstrate sucha condition objec tively and tothesatisfaction oftheotherParty, and giveassurances that t he areashall remainas such based on prot ection measur es adopted by the author it ies res ponsiblefor sanitary and phytosani tary service s.

4. The Partyinterested inobta ining ther ecogni tion ofa pest -ordisease - free areaorarea s ofl ow pestor disea se prevale nce shall m ake ther eques t,and pr ovid e ther elevant scientific and technical infor mati on totheotherPart y.For t hispur pose,ther equesting Partyshal lprovidereasonab leaccess toits te rri torytotheot herPartyfo ri nspection, testing and other relevant procedur es. 5. Ifth e request forrecog nitio n i s rejected, t he rejecting Partyshall provide thetechnical re asons forits decision inwriting.

Article 8.9

Con trol, Inspection And ApprovalProcedures

str. 381. The Parties shall, inacc ordancewiththi s Chapter, applytheprovis ionsinA nnex C of the SPS Agreement in r elatio n to contr ol , i nspe ct i on or approvalprocedures, in cludingsystems for appr oving the use of addi t i ves or f or est ablishing levels of t ol erancefor contaminants in food, beverages orfee dstuff s.
2. The importingPart y may verifywhether t he importedanimals,pl antsand otherrelated prod uctsarecons istent lyi n compliancewithit s sanitary and phytosanitary requirements. The Parties shall fac ilitate proceedi ngsforsuchverification.

Tran sparency

str. 381. Each Partyshallnot ifyt hrough i t s competent authorities, modification of a sanita ry or phytosani tarymeasure and provide t he related i nfo rmationin accor dance with the provisions in Ann ex B oftheSPS Agreement. 2. Inaddition, t o ens ur e theprotecti on ofhuman, animalorplant li feorheal t h intheot herParty, each Partyshall notify :
3. (a) changesormodificatio ns tosan itary and phytosanitary measureshavinga significant ef fe cton trade between theParties, atleast 60 days beforetheeff ect ivedateof the new provision, to al low forobser vatio ns from theotherParty.

str. 39The 60- day peri od shallnot apply to emergency situa tions, as est ablished in Annex B of the SPS Ag reement;

(b) changes occurringi n t he animal healthfield, such as the appear ance of exot i c di seases and t hose inListA oft he OIE, within24 hoursfol lowingtheir pr ovisional di agnos is ;

(c) changesoccurring inth e phytosanitary field, such as theappearanc e of a quaran t in e pestand spreadofa pestunderof ficial control, w it hin24 hoursfo llowing verifica ti on ofthepest;

(d) food control emergency sit uations where t hereisa clear lyident ified risk of se ri ous adverseheal th effects associated with the consumptionof certain food,w ith in 24 hoursofth e identifica tion ofth e ri sk;and

- (e) disc overies ofepid emiologi calimportance and signif icant changesrelated todi se ases and pestsnotincluded insubparagr aphs 2(b)and (c)thatmay affect tradebetween th e Part ies, withina maxim um per iodof tendays following thever i fication ofsuch di sease s and pests.

Commi ttee On Sanitar y And Phytosani tary Measures

str. 391. The Partieshereby es tabl ish a Comm itteeon Sanitaryand Phytosanitary Measures ('Commi ttee'), compris ing representatives of each Part y, who are responsible for san itaryand phyto sani tary is suesinthef ields ofanimaland plant heal t h,foodsafety and trade. 2. The Commi tteesha llbe setup not later than 30 days after the entryintoforceof this Agreement. 3. The Committee shallcar ry out thefunct ionsnecessary to implement theprov i sionsof this Chapter, in cluding ,butnotlim ited t o:

- (a) coordinating th e appli cat ionoftheprovisions oft hisChapter;
- (b) facilitating consul tatio ns on specific matt ers related to sanit ary or phytos anita ry measure s;
- (c) establishing and deter miningthescopeand m andateofthesub- committees;
- (d) promotingtechn icalcooperation between the Parties, including cooperation in the development ,adoption and enf or cem entofsanitary and phytosanitary measures; and
- (e) monitoring thecompli ancewit h theprovisions ofthis Chapter. 4. The Committee shall establi sh,i f theneed arises and thePar ti esso agre e,thefollowing subcommittees :Sub- Comm itt eeson Animal H ealth, PlantProtection and Food Safet y.The mem bersof these sub- committeessha ll be des ignated by therelevant authoritie sintheir respe ctive fields. 5. The sub- comm ittees shall carry outt he fo llowi ng func t ions, including, butnotlimited to:
2. (a) preparing te rms of reference fo r their activ ities withinthescopeoftheir competence and in formingresults thereof tot he Committee;
3. (b) concluding specific agreements on m att ers of interest, involv ing hi gher technica loperating details, tobe submitted t o theCommittee;and
4. (c) establishing expedit iousinform ati on exchangemechanisms todealwithconsu ltati ons between t he Parties . 6. The Committee shal lmeet once everytwo years, exceptasotherwise agreed. Ifan additional meetingisrequested by a Part y,it wil lbe heldi n thet er r itory oft he other Par ty. The sub- committees shall meet,upon request ofa Par ty .The m eetings may alsobe heldby t elephone, videoconfere nceor other m eans, upon theagre ement ofbothParties. 7.

str. 40The Commit tee shallrepor t annuallyto the C ommission on the implementation of this Chapter. 1. A Part y may i ni tiate consultations withtheotherPartyifuncertainty arises withreg ardtothe application orinterpr eta tion oft he conte ntofa sanitary orphytosanita rymeasureunderthi sChapt er. 2. Wh erea Party requests consultations and so not if iesthe Committee,the Co mmitte e shall faci lit ateconsultation s,and may refe r the matterat i ssue to an ad hoc worki ng group or another foru m, forproviding non- binding techni calassistance orrecomm endatio nstotheParties. 3. A Partyasse rting that t he interpretation orapplication ofa sanitary orphytosa nitary measure of t he otherPartyisincon si stent wit h theprovisions of this Chaptershall beartheburdentoprove such inconsist ency. 4. Wh erethePartie s,pursuan t to this Arti cle, have carr iedoutconsultations witho ut reaching satisfactor y results, suchconsultati ons,ifso agreedby theParties, shall consti tu teconsu l ta tions under Article 19.4.

CHAPTER 9 :STANDARDS -RE LATED MEA SURE S

Article 9.1

Defin itions

str. 40Forpurposes ofthis Ch apter:

authoriz ation procedure means any reg istration, notification or other mandator y administrative proceduregr antingauthorizat ionfora good tobe produced,marketedor used fora stated purposeorundersta te d condi tions;

confor mity asses sment procedure means any procedureused,directly or indirectly, to determin e complianc e withthepr ovi sionson techni calregula tions or standards.

Article 9.2

Ge neral Provis ion

str. 41The Part iesshall appl y thepro vision s setforth inthis Chapterinaddition totheprovision s establ ishedby theWTO Agreement.

Article 9.3

Scope And Coverage

str. 411. This Chapter applie s to st andards - rel ated measures of t he Parties thatm ay, di r ectlyor indirec tly, affect thetrade ofgoods betweentheParties and tomeasuresoftheParties rel at i ng tosuch measures . 2. Provisions includ ed in th isCh aptershall not appl y to sanitary and phytosanitary me asures governedby Chapter8.Technical spe cifications prepared by governmental bodiesforproduction or consumptionrequirements of gover nmentalbodiesarenotsubject t o theprovisions of this Chapter butareaddres sedinC hapte r15.

Rightt o Take Standa rds - Related Measures

str. 411. Each Partymay prepare, adopt,applyor m aintai n any standards - related measure to ensure thateach Partyisabletopur sue its legi timate obj ect ives, as wellas measuresensur ingenf orc em ent and compliancew ith these standar diz ingm easures, incl udi ng approval proc edures. 2. Each Partyshallcomply wit h the appli cableprovisi ons of thisChapter and adopt the appr opri ate measures t o ensur e itsobservance, as w ellas thosemeasures of non- governmental standardizing bodiesdulyaccr edited i n its terr itory. 3. Each Partyshall, in respect of i tsstandards - rel at ed measures, accord to goods of theothe r Part y:
3. (a) national treat ment;and
4. (b) treatment no less fav or ablethanthemost favorable treatmenthat thePartyaccords t o simila rgoodsofany ot hernon- Par ty .

Unn ecessary Obstacles

str. 424. No Partymay prepare, adopt, maintain orapplyany standards - related measurew ith a view to or with the effect of cr eatingunnecessaryobstacl es to tradebetween the Parties. To th at end, standards - rel atedmeasuresshall notbe m oretrade res tr ictive thannecessa ry toachiev e a legitimate objec tive, taking acco unt of t he risk s t hatnon- fulfill ment would create. A n unneces saryobstacle to tr ade shall notbe deemed tobe created where:
2. (a) thedemonstr ablepur poseofth e measureistoachieve a legit imateobjective;
3. (b) themeasurecomplie swit h an interna tional standa rd;and
4. (c) the measure does not oper ateto excludegoods of the otherPartythatmeet t hat legitimate objective.

Use ofInternational Sta ndards

str. 425. Each Partyshalluse, as a basi s for itsown standa rds - relat ed measures,the rele vant inte rna tional standards i n f or ce orwhose completion isimminent, exceptw heresuch standards would be an ineff ective orinapp ro pria temeans t o fulfill its l egitimate objec tive s.

Article 9.5

Compatibility

str. 421. Recognizing thecru ci alro leofstandards - related measure s inachieving legitimate obj ectives, thePartie s shall, inaccord ance wit h th i s Chapterand theWTO Agreem ent, work jointly toenhance thel evelofsafety and ofpr ote ction of human, animaland plant life and health, t he environme ntand consumers. 2. The Partieshall, tothegr eatest extent practi cable, work tomake compatible th ei r respective standards - related measures, with outred ucingthel evelofsafety or of protect ionofhuman ,animalor plantlife or health, th e environmentor consumers, withoutprejudice tot he r ights granted toeither Part y under thisChapter , and takingintoaccountinternat ionalst andardization activ ities s o as to faci lit atethetrade ofa good bet w een theParties. 3. A Partyshall ,upon request oftheother Par ty, see k,asfaraspossibl e and throughappr opria te measures ,topromotet he com pat ibility ofa specif icst andar d- rel at ed measure tha tism aintaine d inits terr itory withthestand ard s- r el ate d measuresm aintained intheterritory ofth e oth erParty. 4. A Partyshall, upon requ es tinw riting f rom theother Partyexplicitly stating its reasons forthe request, cons iderfavor ablythepossi bility ofaccep ting standard s- relat ed measuresoftheothe rPar t y asequivalent toits own, eveniftheydiffer from its own, provided that, incoopera t ionwithth atParty, itisconvincedthatsuch measures comply adequat ely with the legitimate objec tiv es of itsown measures . 5. A Part y shall pr ovidetot he oth erPar ty, upon request, its reas ons inwriting fornotaccepting standards - related me asures asequi valent underparagraph 4.

Article 9.6

ConformityAssessmentProcedu res

str. 431. Conformityassessm entpr ocedur es of thePar ties shall be prepared, adoptedand applied i n a manne r thatprovidesaccessto similar goods of theterr itory of the otherPartyon terms no less fav orablethan thosegr antedt o si mil ar goods of the Partyor any ot her countryin a comp arable position. 2. Each Partyshall, w ith respect toi tsconformity assessment procedures, ensurethat :
3. (a) such procedu resarein iti ate d and complet ed asexpedi tiously aspossible and ina nondi scr iminatory order ;
4. (b) thenormal pr ocessingperiodfo r each one of such proce duresispublished or the esti mated pr ocessing peri od i s com municatedtotheappli cantupon request;
5. (c) thecompe tent body orauth ority:
6. (i) upon receipt of an applica tion, promptlyexaminesthecom plet enessof t he documentation and inf orms theapplicant ina precise and complet e manner of any deficiency;
7. (ii ) transmits t o theapplic antas soon aspossible theresults oftheassessment in a precis e and completem anner ,so that theappli cantmay takeany necessary cor rectiv e action;
8. (iii ) even iftheapplication isdef i cient, procee ds as fa r as pra cticable w iththe confo rmity ass essmenti fsorequ ested by theapplicant; and
9. (iv ) informstheappli cant,on request , of the status of the appli cationand t he reasons forany delay;
10. (d) itlimits t he inf ormatio n t he appli cantisrequi redt o supply to w hatisnecessary to conductt he conformi tyassessmentprocedure and todetermi ne appropr ia tefees;
11. (e) theconfidenti alnatureof info rmationari singf rom, or supplied i n connection wit h suchprocedures fora good ofth e otherPar tyisrespected inthesame manner as the tr eat ment accordedto a good of thatParty, so as t o protect legitimate commercial in ter ests;
12.

str. 44(f) any feeitimposesforconducti ng theconformi tyassessment procedure of a good of th e otherPartyisno hig her thani s equitable inrel ation toany such feeimposed fo r like goods ofthat Party ,t akinginto accountcommunication, tr ansportation and other relat ed costs derived f rom thediff er entlocations ofthefacil it i es of theapplican tand th oseoftheconformity ass essmentbody; - (g) thelocation of fa cil it ie s atwhich conformityassessmentproce duresand samplin g selection procedures areconducteddoesnotcauseunnecessary inconvenience tot he applicant orits agents;
- (h) wh eneverthespecifi cation s fora good arem odified subsequen t to a det erminat io n th at the good confo rms to the appl ica ble techni cal regulation or st andar d, the conf ormityassessment pr ocedureofthemodifiedgood isl imited tow hatisnecessary to determinethatthe good contin ues to conform t o the technical reg ul ationor standard; and
- (i) thereisa procedur e i n placeto review complaintsconcerningthe operation of a conf ormityassessment pr ocedureand that corr ective action istakenwhen a complaint isju stifie d.
3. Each Partyshal l give positiv e consideration to a re questby the otherPartyto negotiate agr eements for the m utualrecogn iti on of the r esults of theirrespective conformityasse ssment proc edures. 4. Each Party shall,wherever possibl e, accept the resul ts of the conformityassessm ent proc edures conducted in the ter rito ry of the ot her Party,providedthatthe proc edure offersa satisfactor y as suranc e, equi valen t t o thatprovidedby a procedureitconductsor a procedure conductedinits terri tor y,theresults ofw hichi taccepts, and that therelev antgood com plies withthe applicable technical regulation orstandard adoptedorma int ainedinthat Party's terri t ory. 5.

str. 44Prior toaccepti ng ther esult s of a conformity assessment procedure pursuant toparagr aph 4, and in orderto enhance confi dence i n the permanent reliabil ityof each one of th e conformity assessmentresults, the Parti es m ay consulton matterssuch as the techni calcompetence of the conf ormityassessmentbodiesinv olve d, i ncludingveri fiedcompliancew ithrelevant int er nat i onal standards th r ough means suchasacc reditat ion. 6. Recognizing that it shouldbe tothem utual advant age oftheParties, eachPartyshall accredit, appr ove,or otherw isereco gniz e conformity assessment bodi es intheterri t ory of theotherParty, on ter ms no less favorab letha n thoseaccorded toconformity assessment bodies inits territory.

A uth oriz ation Proced ur es

str. 44Each Partyshall apply ,withsuchm odifications a may be necessary, therele vantprovisions ofArti cle9.6.2, toits autho riz ati on pr ocedur es.

Article 9.8

Tran sparency

str. 441. Each Partyshall keep a l ist of its st andards - rel atedm eas uresand make them availab letothe otherParty, upon requ est, and ensurethat w herefull copi es of documents arerequested by theother Part y or by interes tedpersonsof theotherParty, theyaresupplied atthesame pric e,apart from t he actu alcostofdelivery ,asthepri cefo rdomesti c purchase. 2. Wh erea Part y al lows non- governmental personsinits terri t orytoparticip ateintheprocess of preparati on of standa rds - r el ated m easures, i t shall alsoallow non- governmentalpersonsfrom the terr itory of theotherPart y to partic ipate. In such participati on,nongover nm ental person s f rom the terr itory oftheother Par tyshall be al lowed t o express their opinions and com ments on thepreparation ofthestandards - relat ed measure.

Limita tions On The Provision Of Infor mation

str. 45Nothinginthis Chaptershal lbe construed torequire a Partytofurnish any information the disclosure ofw hichtheyconside riscont r arytoits essenti alsecuri t y intere sts.

Committee On Stand ards - Relat ed Mea sures

str. 451. The Parties hereby estab li sh the Committee on St andards - RelatedMeasu res,com pr is i ng representatives ofeachParty ,pursuant toAnnex 9.10. 2. The Commit tee's funct ionsshall i ncl ude:
3. (a) monitoring theimplementa tion, enforcement and administration ft hisChapter;
4. (b) considering any specific matt er relating to the standards - relat ed and m etrol ogyrelat ed measuresof theoth erPart y or any otherrelated measures, whenever a Party has any doubtson t he interpretation or applica t ion of thisChapter,includin g the provi sionofnon- mandatorytechnical adviceand r ecomm endations;
5. (c) facilitating theprocessby which thePart iesmake compatible their standards - related and metrology - related measures;
6. (d) providing a f orum f ortheParties toconsult on i ss uesr elating tostandards -r elated and metrology - relate d measures;
7. (e) fostering technical coopera ti on activities betweentheParties ;
8. (f) enhancingcooper ationon the development and str engtheningof standardiz ation syst ems, techni cal regulations, conformityasses sment proceduresand m etr ol ogy syst ems oftheParties;
9. (g) reporting annual lyt o th e Commission on theimplementation ofthis Chapter;
10. (h) facilitating theprocessofnegotiating agreementsformutualrecognitio n betweenthe Parties; and
11. (i) establishing sub- committeesas deemed necessaryand det erminingthe scop e of actio n and mandateofsuchsub- commi ttes. 3. The Committee shall m eetas mutuallyagreedbutnotlessthanonce a year. The meeting s may alsobe heldby t elephone, videoconf erenceorother means,upon theagree ment oftheParties. Forpurposes ofthis Ch apter:

disputi ng investor means an inv estor that m akesa claimunderSection C;

disputi ng parties m eansth e disputi ng in vestor and thedisputing Party;

disputi ng Party means a Par tyagainst which a claimism adeunderSect ionC;

Technical Cooperatio n

str. 461. Each Partyshall, upon r equestoftheothe rParty, provi de:
2. (a) information and technical assi st ance on mutual ly agreed t erms and condit ionst o enhance the standa rds - r elat ed measures of thatParty,as w ellas it s activitie s, processes and systemsint hismatt er; and
3. (b) informationon itst echnicalcooperati on programs l inked to standa rds - relate d measure sinspecific area s ofin ter est. 2. Each Party shal l encour age standardizing bodies i n it s ter ri tory to cooperatewith the standard izingbodiesinthet er ritories of theotherParty, as appropriate, inst andard i zing activities, such asthr ough me mbershipini nter national standar di zingbodies. 3. Each Partyshall, t o thefu ll es t extent practicabl e,inf orm theotherPartyof theinternatio nal agr eementsorprogramsit hasexecut ed on standards - relat ed measures.

Membe rsOf The Standards - R elated MeasuresC ommittee

str. 461. Forpurposes ofArti cle9.1 0,members oftheC ommitteewill be representatives fr om:
2. (a) in the case of C hile, the Minis terio de Economía, throughthe D epartame nto de Co mercioExterior, orit s su ccessor; and
3. (b) in thecaseof K orea,t he Mi nis tryof C ommerce, Indust ry and Energy,througha depar tmentresponsib leforstandar ds- r elat ed measures ,orits success or. 2. Each member shal l inv ite, as itdeems necessa ry or upon request of th e othe r Party, other rele vant government or ganizatio ns respons i ble forst andards - related measures,to part i cipate in the Committee.

Defin itions

str. 47ICSID means theInter natio nalCenter forSettlement ofI nvestmentDisputes;

ICSID C onvention means theConvention on theSet tl ement ofInvestment D isputes between States and Nationals ofoth erStates, done atWashington, Ma rch18,1965;

investment me anseverykindofass etthat an investor owns orcontrols, dire ct l y orind i re ct l y, and that hasthecharacte ris ti csofan investment, suchasthecommitm entofcapital orother resources, theexpectation of gainsor profit s and t he assumptionof risk. Forms thatan inv estmentmay take incl ude,butarenotlimi tedto:

- (a) an enterprise;
- (b) shares, stocks, and other fo rms ofequi t y participation inan enterprise;
- (c) bonds,debentures, loans, and other debtinstrum entsofan enterprise;
- (d) rights under contracts, i nclud ing turnkey, construct ion,management, product io n, concess ionorrevenue - sharing contra cts;
- (e) claimsto money esta bli shed and maintainedin connectionwit h the conduct of commercialacti vities;
- (f) intellectual prope rty ri ghts;
- (g) rights conferr ed pursuant todomest iclaw or cont ract such as concess ions, l icenses, autho riz ations and per mits, exceptf orthos e that do notcreate any right s pr ot ectedby domesti c law;and
- (h) othertangibl e or i ntan gib le,movable or imm ovableproperty, and related property righ ts, suchasl eases, mortgages, l iens and pledges;

but invest men t doesnotmean,

- (i) claimstomoney that ar i sesolel y from:
- (i) commercial contract s f or the sale of goods or services by a national or enterprise in theterr itor y of a Partyto an enterprise in thete rr it ory of the other Part y;or
- (ii ) theextension of credit i n connec tionwitha comm ercial transact ion,such as trade financing; and

- (j) an orderenter ed ina jud icial oradm inistrat iveaction.

Scope And Coverage

str. 481. ThisChapterappl i estomeasuresadoptedorm ainta inedby a Part y relating to:
2. (a) inves tors oftheother Party ;
3. (b) inves tmentsofinvestor soft he other Par tyintheter r itory oftheParty; and
4. (c) withrespect toArticl es10.7and 10.18, all investm entsintheterritory oftheParty . 2. This Chapterapplies to th e exi st ing investments atthedat e of theentryintoforceof this Agreement,aswellastot he inv es tments made oracquired after this date. 3. ThisChapterdoesnotapplyto:
7. (a) measuresadoptedor maintained by a Par tyrelating toinves torsof theotherPart y, and investments ofsuchi nvestor s,infinancial institutions intheParty's terri t or y;and
8. (b) claimsaris in g outofevent s which occurr ed,orclaimswhich had beenrais ed,prior t o th e entry into force ofth isAgreem ent . 4. Nothing in t hi s C haptershall be construed t o preventa Par ty from providing a service or performing a function such as la w enf orcement, cor rectional services, income se curity or insurance, social security orinsur ance,social welfar e,public educati on,public t raining, healt h and child care. 5. Notwithstand ingparagr aph 4,ifservices providedintheexercise of governmental authority ar e provided intheterr it or y ofa Par tysuchaslaw enfor cement,correctional servic es, income security orin surance, social securi tyorin surance, soci alw el fa re, public education, public training ,health, and chil d careon a commer ci albasis ori n competi tion wit h one ormore service providers, thoseservices ar e coveredby thepr ovisi onsofth isC hapter.

National Treatment

str. 481. Each Partysha ll accor d toinvestors oftheother Partytreatment no less f avourable thanth atit accords , in likecircumstances, to it s ow n i nvestor s with respect to the estab lishment, acquisition, expansion, management,conduct, operat ion, and sal e orother di sposition ofinvestments. 2.

str. 49Each Partyshallaccor d to i nves tmentsof invest ors of t he otherPar t y treatm ent no less fav ourable thanthat it accords, inlik e cir cumstances, t o investments ofits own investors withrespect to the establis hment, acquisi tion, expansion,management, conduct,operat i on, and saleor other disp ositi on ofinves tments.

M ost - Favoured - NationTreatment

str. 491. Each Party shall accordtoinve stments ofinvestors oftheot herPar tymade orm aterialized in accordancewiththelawsand reg ulat ionsoft he other Party, and inv estors oftheother Party who have made or materialized such i nvestmen ts,tr eatment no lessfavorabl e than it accords,in like circ umstances, toinvestments m ade ormaterialized by investors ofany non- Partyorinves t or s ofsuch inv estmen ts. 2. Ifa Partyacco rdsm ore f avor abletreatm ent to investments of invest orsof a non- Partyor inv estors ofa non- Part y by an agr eementestabli shing, int eral ia ,a f reetrade area, a customsunion, a common market,an economic uni on or any otherform of regional economic organization towhich thePartyisa member ,it shall notbe obl igedtoaccordsucht reatment toinvestments oftheinv estors oftheother Partyortheinv esto rsoftheother Party. 3. Notwithstand ingpar agraph2,ifa Par tymakes any further l ibera liz at i on,inconformitywith Article s 10.9.1 and 10.9.2 by an agreementwitha non- Party, itshal lafford adequateopportunity to theother Par tytonegoti atetr eatmentgra ntedthe rein on a mutually advantageou sbasis wit h a vi ew to securing an overall bal ance ofri ghtsand obligations.

M inimum Standard O fTreat men t

str. 491. Each Party sha ll accor d toinv es tmentsofinv estors oft he other Partytreatment inaccordance with thecustomaryinter national law minimum standardof t reatmentof aliens, including fair and equitable tre atmentand fu ll protecti on and securi t y. 2. The concepts of'f air and equitable treatment' and 'full protection and security' inpar agraph 1 do not requiretreatm ent in additionto or beyond thatwhich is requiredby the customary inte rna tionalaw mini mum standar d oftreatment ofali ens. 3. A determination t hatthere has been a br each of another provision ofthis Agreement,orofa separate i nternationa l gree ment,doesnotestablish that there hasbeena breachofthis Article.

LossesA nd Compensation

str. 49Investors ofa Partywhose i nvestment s suffer losses owing towar or ot herarmed confl i ct, a state of national emergency,rev olt, insurrecti on,riot or othersimil arsituations ,and such losses as onesresulting from r equis i t ionor dest ruction of propert y,w hichw asnotcaus ed incombat act ionor was notrequired by th e necess ity ofth e situation, int he territory oftheotherPar ty ,shall be accorded by thelaterPartytr e at ment,as r egard s restitut ion,indemnification, compensationor otherforms of settlement, no les s f avora bl e tha n thatw hich the latter Partyaccordsto itsown investors or to inv estors ofany non- Part y,whicheverism oref avourable totheinvestors concerned.

Perf ormance Requir em ent s

str. 501. NeitherPart y may impose or enforceany of the following requirements, or enf orce any commitment or undertak ing, i n connection with the establ ishment, acquisition, expansion, management,conductoroper atio n ofan investment ofan invest orofa Partyorofa non- Partyi n its terr itory:

(a) toexport a givenlev elorper centageofgoodsorse rvices;

(b) toachieve a givenlevel orper cent age ofdomesticcontent;

(c) topurchase, useoraccorda pr eference togoods producedorservi cesprovidedi n its terr it ory, ortopurchase goods orser vi ces from persons init sterritory;

(d) torelate inany way thevolume orvalueofimports tothevolume orvalueofexports ortotheamount offor eig n exchang e i nflowsassociated w ith suc h investment;

(e) tores trict sales of goods or ser vicesini tster ritory that such inv estmentproducesor providesby relating such sal es in any way tot he volume or valueof its expor tsor foreig n exchangeearnin gs;

(f) to transfer te chnolog y, a producti on processor oth er proprietary knowledge to a personinits terri tory ,exceptw hen t he requ irement isi m posedorthecomm i tmentor underta kingisenforced by a court ,administrative tribunal orcompetiti on authori tyto remedy an alleged violati on ofcompetiti on law ortoactina manner notincon sistent withother provisions ofth isAg reement; or

(g) toactas theexclusi ve supplier of thegoods itproducesor servic es itprov idestoa specific regio n orwo rld m ar ket. 2. A measure tha t requir es an investm ent t o use a technologyto m eetgenerally applicable health, safetyor envir onmental r equirementsshallnot be const rued to be i nconsist ent wit h subparagraph 1(f). Forgrea ter certa in ty, Articles 10.3and 10.4applytothemeasure. 3. NeitherPartym ay condi tionthereceipt or continued recei ptofan advantag e,inconnection withan investment ini tsterr itor y ofan investor ofa Part y orofa non- Party, i n complia nce withany ofthefollo wing requir ements:

(a) toachieve a givenlevel orper cent age ofdomesticcontent;

- (b) to purchase, use or acco rd a preference to goods produced in itster ritory, or t o purc has e goods from producers i n its terr i tory;
- (c) tore late inany way thevolume orvalueofimports tothevolume orvalueofexports ortotheamount offor eig n exchang e i nflowsassociated w ith suc h investment; or
- (d) tores trict sales of goods or ser vicesini tster ritory that such inv estmentproducesor provi des by relating such sal es in any way tot he volume or valueof its expor tsor foreig n exchangeearnin gs. 4. Nothinginparagr aph 3 shall be construed t o prevent a Part y from conditioning th e receipt or continued receipt ofan advant age,i n connect ionwithan invest m entinit s te r ritory ofan investor ofa Part y orofa non- Party ,incom pl iancewitha requirement tolocate produc tion, provide a service, train oremploy workers, constr uctorexpandpar ti cular f acilities, orcarry outre searc h and development, i n its territory. Intheeventofany inconsist encybetweenthis paragraph and t he TRIMS Agreeme nt, the latter shall prevail tot he exten tofthei nconsistency. 5. Paragraphs 1 and 3 do notapplytoany requi rementotherthanthere quirements setoutin thoseparagraphs. 6. Providedthat suchmeasuresarenotappli ed inan arbitrary orunj ust if iab l e manner,ordo not constitute a disguise d r estriction on international tradeor i nvestment, not hi ng insubparagraphs 1(b) or ( c) or 3(a)or (b)shal l be const rued to preventa Partyfrom adopti ng or maint ain ing m easures, incl udi ng environme nt almeasures:
- (a) necess ary to secu re compliancewith laws and regul ati ons thatarenot inc onsistent witht he pr ovisions ofthis Agreement;
- (b) necess arytopr otec thuman, ani m alorplant li feorhealt h;or
- (c) necess aryfortheconserv ation ofliving ornon- living exhaustible natural resources. 7. The provis ion s of:
- (a) subparagraph s 1(a) , ( b) and (c), and 3(a)and (b)shal l not apply to qualif ic atio n requir em entsforgoods or ser vi ces wit h respect toexportpromotionand foreign aid programs;
- (b) subparagraph s 1(b), ( c), (f) and (g), and 3(a)and (b)shal lnotapplytoprocurement by a Party ora state enterprise; and
- (c) subparagraph s 3( a)and ( b)shall notappl y torequirements imposed by thei mportin g Partyrelating totheconte nt of goods necessaryto qual ifyfo r pref erential tarif f or preferential quotas. 8. This A rticle does not prec ludetheapplication of any commitment, obligation or requisite betweenprivate parties.

SeniorManagement And Bo ar dsOf Dir ectors

str. 511. Neither Partym ay requir e that an enterpr iseofa Partythat i s an inv estmentofan inv estor of theothe rParty appoint tosenior managem entposit ionsindividuals ofany parti cular nati onality.

str. 52ofan of thatPart y th at isan i nvestmentof an investor of the otherPart y, be of a particular ly 2. A Part y may require that a majority oftheboardofdir ect ors, orany comm ittee thereof, enterprise nati onality ,orresiden tintheterritor y oftheParty, prov idedthat therequi rementdoesnotmaterial impairtheabilit y oft he inv esto rtoexercise control overits investment.

Reservations And Exceptio ns

str. 521. Articles 10.3, 10.7and 10.8shall notapplyto:

(a) any existing nonconf or ming m easure that ismainta inedby:

(i) a Partyatthenati onallev el, assetoutinits ScheduletoAnnex I;or

(ii ) a local government;

(b) thecontinuation or pr ompt renewal of any nonconformingmeasure re fer red to i n subparagraph (a); or

(c) an amendment toany nonconformingmeasurereferred toinsubparagraph (a)tothe extentth attheamendment does not decreasetheconformityof themeasure,as it existed immediately bef oretheamendment, withA rt icles 10.3, 10.7and 10.8. 2. Articles 10. 3,10.7and 10.8sha llnotapplytoany measure that a Par tyadoptsor maintains withrespect t o secto rs ,subsectors oract ivities, assetoutini tsScheduletoA nnex II. 3. N either Partyshall, under any measure adoptedafter the dateof entr y intof orce of this Agreement and coveredby i tsSchedul e toA nnex I I,requi re an investor oftheotherParty ,by reason of itsnationality, to sell or ot herwisedisposeof an inv estmentexisting at the time the measure becomeseffective. 4. Nothinginthi s Chaptersha ll be construed so ast o derogate from rights and obligations under inte rna tional agreementsinres pectof prot ection of in tellectual property r ights towhich bothParties ar e party, in cluding TR IPS Agreem entand ot hertr eat iesconcludedundertheauspices of theWor l d Intel lectual Property Organi zatio n.
5. Articles 10.3and 10.8shall notapplyto:

(a) procur emen tby a Party ora st ateenterprise; or

(b) subsidies or gr antspro vide d by a Partyor a state ent erpr ise, i ncluding government support ed loa ns,guarantees and i nsurance. 6. Articles 10. 3,10.7and 10.8shall notapplytoany voluntary and speci alinvest ment r egime, asisesta blished inAnnex 10.9.6.

Futur e Liberalization

str. 52Through f uturenegotia tions, to be sc heduledeveryt wo yearsby theCommission after the dateofentry into fo rceofthis Ag reement, theParties will engageinfurt herliberal isation witha vie w torea chi ng theredu ction or elim ination of theremainingrestrictions scheduled inconfo rmitywith

paragraphs 1 and 2 ofArticl e 10.9on a mutually advantageous basis and securing an overall balance ofrights and obligations.

Transfers

str. 531. Except as prov id ed in Annex 10.11,each Par ty shallpermital l transf ers relating to an inv estmen tofan inv es toroftheother Partyintheterritory ofthePartytobe ma de freely and wit hout delay .Such trans fers includ e:
2. (a) theinitial capit aland additional amount tomaintain orincr easean i nvestment;
3. (b) profits , dividends, i nteres t, capi t al gains,royaltypayments, management fees, technica lassistance and otherfees, returns i n kind and ot her amounts derive d from th e invest ment;
4. (c) proceedsfrom thesaleof allor any partof t he invest m entor fr om thepartia l or completeliquidation ofth e i nvest ment;
5. (d) payments made under a contract enter ed intoby the investor, or itsinv estment , in cluding paymentsm adepur sua nttoa loanagreement;
6. (e) paymentsmade purs uanttoArt icl e 10.13; and
7. (f) paymentsaris ingunderSect ionC . 2. Each Partyshall permi ttra nsf er s tobe made ina freely usableorconvertible currency atthe marketrate ofexchangepr evai ling on t he dateoft ransfer. 3. Neither Party may requir e it si nvestors totr ans fer, orpenalize its investors that fail totransfer, thein come, earnings, profi tsor otheramounts derivedfrom,or attributable to , investment s in the terr itory oft he other Party . 4. Notwithstand ingpar agr aphs 1 and 2,a Partym ay preven t a transfer throug h theequitable, non- discriminatory and good fa ith applicat ionofits lawsre lating to:
11. (a) bankruptcy, in solv ency ortheprotection oftherights ofcr editors;
12. (b) issuing, trading ordealing insecuri t i es;
13. (c) criminal orpenaloff enses;
14. (d) reports oftransf ersofcurr encyorother monetaryinst r uments;or
15. (e) ensuring thesati sfa cti on ofj udgmentsinadjudicator y proceedi ngs. 5. Paragraph 3 shal lnotbe const ruedtoprevent a Partyfrom imposingany m easure throu gh the equitable, non- discr iminat or y and good f aith application ofits laws relat ingt o thematters setoutin subparagraphs (a)thr ough (e)ofpar agr aph 4. 6. Notwithstand ing paragr aph 1, a Party m ay restrictr ansfersof re turn s in ki nd in circ umstanceswhere itcouldothe rwiserestrict suchtransfers underthis Agreement,including as set outinparagraph 4. Art icl e 10. 12

Exceptions And Safeguard Measures

str. 541. Wh ere,inexceptional circum stances, payments and capi talmovements betwee n theParties cause or threaten tocauseseri ous di f ficulties fortheoperation of monetarypolicy or exchange rate policyin either Party , t he Par ty concernedmay takesaf eguard measures with regardt o capital mo vem entsthatare strictly necessar y f or a periodnot exceedingone year.The applicati on of safe guardmeasuresmay be extendedt hroughtheir for mal reintroduction. 2. The Partyadopting thesa feg uardm easures shall infor m t he other Party forthwith and present, assoonaspossible, a timeschedul e fortheir removal.

Expropriation And Com pensation

str. 541. NeitherPart y may, direct ly or indirectly, nationalize or expropriat e an investmentof an inv estor oftheother Party i n its territ ory,except :
2. (a) fora public purp ose ;
3. (b) on a non- discri minato rybasis;
4. (c) inaccordance withdue pro cessoflaw and A rt icle 10. 5(1); and
5. (d) on payment ofcom pensa tio n inaccordance withparagraphs 2 through6. 2. Compe nsation shallbe equiva lentto the fair market valueof the expropriated investm ent immediatelybeforeth e expr opriati on tookpl ace ("date of expropria tion"), and shall not reflect any change invalueoccurri ng becausetheint ended expropri ationhad become known ear lier. Valuation cr iteria shallincludegoi ng concern value,assetvalue includi ng decl ar ed t ax value of tangible prop erty, and other crite ria, asapprop riat e,todet erminefai rmarketvalue. 3. Compe nsation shal lbe pai d without delayand be fully realizable. 4. Ifpayment ismade ina G7 curr ency,com pensation shall include interes tata com merci al l y reasonable rate fo rtha tcur renc y fr om thedateofexpropri ation unt i lt he dateofactual payment. 5. Ifa Partyelect stopay ina currency other thana G7 currency, theamount paidon thedateof payme nt, ifconverted into a G7 cur re ncy atthemarketrate ofexchang e pre vailing on that date, shall be no le ss than thatifthe amount of com pensation owed on thedateof expropriation had been converted intothatG7 curr ency att he marketrate of exchangeprevai li ng on thatdate, and interest had acc ruedata com mercially r easo nabl e rate f or t hatG 7 currency from t he dateof expropriation unti lthedateofpayment. 6. On payment,compensation sha ll be f reely t ransferable aspr ovidedinArticle 10.11. 7.

str. 55This Article does not apply to the issuance of compulsory licenses grantedin relation to inte llec tual property ri ghts, or tot he revocation, limit at i on orcre ati on ofi ntellectua lproperty rights, tothe exten t thatsuch i ssuance, r evocation, l imitation or cr eationis consistent with the TRIPS Agreement.

Art icl e 10. 14

str. 551. Wh erea Part y or an agency aut horized by that Partyhas grant ed a cont ract of i nsuranceor any form offinancial guarant ee agai nstnon- com mercial risks withregard toan investme ntby one of its investo rsintheterr itor y oftheother Part y and w hen paym enthasbeen made underthis cont r actor financi alguarantee by th e formerPartyortheagencyauthorized by it, t he latter Partyshall recognize therightsof thefor mer Party or theagency authori zed by thePartyby virtue of theprinci pleof subrogati on totherig htsoftheinvesto r.
2. Wh erea Part y or theagency authorized by t he Partyhas made a payment toi tsi nvesto r and has take n over rights and cla ims of th e investor ,thati nvestor shal l not,unless authorized toacton behal foftheParty mak in g thepaym ent, pur suethoserights and cl ai ms against theother Par ty .

Special Formalities And Infor mationRequirements

str. 551. NothinginArticle 10.3sha llbe construed toprevent a Partyfrom adopting ormaintaining a measure thatprescri bes special f or malities in connect ion with theestablishmen t of inv estmentsby inv estors of theother Part y,such astherequirement t hati nvestmentsbe l egally constituted underthe laws or regulations of the Part y, providedthatsuch formalit ies do not materia llyimpair the protect ionsafforded by a Part y toinv estors oftheother Part y and investments ofinvestors oftheother Part y pursuant tothis Ch apt er . 2. Notwithstand ingArti cle10.3or10.4, a Part y m ay require an investor oftheother Party, orits inv estmen t in itster ritory , to prov ide routine infor mation concer ning thatinv estment solelyfor infor mati onal or sta tist ica l purpo ses.The Partyshal l prot ect such busines informati on thatis confidential from any disclosure that would prejudice t he competitive positi on of theinvestor or the inv estmen t. Nothinginthi s parag raphshal lbe construed toprevent a Partyfrom ot herwiseobtaining ordisc losin g informat ioni n connection withtheequitabl e and good fait h applica tion ofits law.

Rel ation To OtherChapte rs

str. 551. In the event of any inconsist ency betwee n thi s Chapter and anotherChapterin this Agreement,theother C hapter shall prevail totheext entoftheinconsisten cy. 2. The requirement by a Partytha t a servic e provider of t he otherPartyposta bond or other form offinancial security asa condition ofproviding a service into its territ orydoesnotofitself make thisChapterapplicable to theprov isi on of thatcross - borderservice. This Chapt er applies to that Part y's treatment ofthepostedbond orfinancial security.

D enial Of Benefits

str. 561. A Partyma y deny t he benefits of t hisChapter to an investor of theoth er Partythatisan enterprise ofsuchPartyand toinv est mentsofsuchinvestor, i f investors ofa non- Party own orcontrol theent erprise and thedenyingPar ty:
2. (a) doesnotmaintain di plo maticrel at ionswiththenon- Par ty; or
3. (b) adoptsormaintain s measureswithrespect tothenon- Partyt hatpr ohibit t r ansac ti ons withtheenterprise or th atwould be vio late d or ci rcumventedift he benefits of this Ch apte rwere accorded t o theent erpri seortoits inve stments. 2. Subjectto prio r notifi cationand consultat i on i n accordancewith Article s 17.4and 19.4,a Part y may deny thebenef its of th isChaptertoan investor of t he otherPartyt hatisan enterprise of such Part y and to investments of such investors i f i nvestors of a non- Partyown or control the enterprise and theenter prise has no substantial business activi t esi n theterrit oryofthePartyunder who selaw it isconstitu tedororg aniz ed.

Environmental Measures

str. 561. Nothinginthis Chaptersha llbe const rue d toprevent a Partyf rom adopting, ma intaining or enforcing any measureoth er wise consistent withthis Chapterthat itconsiders approp ri atetoensu re thatan inv estment acti vi ty i n itste rrit ory isundertakenin a manner sensitiv e to enviro nmental conce rns . 2. The Parties recogniz e thatitisinappropriat e t o encourageinvest m entby relaxing domestic health, safetyor envir onmental measures.A ccordingly, a Partyshould not waive or otherwise derogate from,orof fertowaive orothe rwisederogat e from,suchmeasuresasan encour agement for theestablishment, acqui sition, expansi on orretent ioni n its t er ritory ofan investm entofan inv es t or. If a Part y conside rsthat t he ot herPartyhasoff eredsuchan encouragement, it may request consultations withtheother Party and thePartie sshal lconsul tw ith a view toavoidi ng any suc h encouragement. Section C -Settlement Of Dispute s B etweenA PartyAnd An Investor O fThe OtherParty

Purpose

str. 56Withoutprejudice totherights and obligati ons of t he Parties underChapter19,thi s Sect io n establ ishesa mechanism f or thesettlement of i nvest ment disputes t hatassures bothequaltre atment among inv estors of thePartie s inaccordancew iththeprincipl e of i nternati onalrec i pro ci ty and due proc essbefo rean impar tial tri bunal.

Claim B y A n Investor Of A PartyO n Its O wn Behalf

str. 571. SubjecttoAnnex 10.20, an investor ofa Partym ay submittoarbi tration underthis Section a claimt hattheotherPart y has br eachedan obligation underSectionB or Article 14.8, and thatthe inv estor hasincur redloss ordamage by reasonof, orarising outof, that breach. 2. An i nvestor may notm ake a claimifmore tha n threeyearshave elapse d f rom thedateon w hi ch theinvestor fir stacquir ed,or shouldhave f i r stacqui r ed,knowledge of theal leg ed br each and knowledge that theinv estor hasincur re d loss ordamage.

Claim By An Investor Of A Par tyOn Behalf Of An Enterprise

str. 571. SubjecttoAnnex 10.20, an inv estor of a Par ty, on behal f of an ente rprise ofth e otherParty thatisa juridical personthatth e i nvestorow ns or controls, di rectly or indirectly, may submitto ar bitr ation underthis Section a claimt hattheot herPartyhasbre achedan obligation underSection B orArticl e 14.8, and tha tt he enterprise hasincurred loss ordamage by reasonof, orarising outof,that breach. 2. An investor may notmake a cla im on behalf ofan ent erprise descr i bed inparag raph1 ifmore thanthree yearshave elaps ed fr om thedat e on which theenterpr i sefirst acquired, orshouldhavef i rs t acqui red,knowledge of th e alleged breachand knowledge thattheenterprise has incurred lossor damage. 3. Wh erean inv esto r mak es a claimunder thisArti cleand theinvestor or a non- controlling inv estor intheenterprise m akes a cla im underArticl e 10.20ari si ng outof thesame event s that gave rise totheclaimunderthis Art icl e,and two ormore oftheclaim s aresubmitted toarb i t ration under Article 10.2 4, the cla ims should be heard together by a Tribunalestab li shed under A rticle 10.30, unless t he Tribunal finds that theinter est s ofa disputing party w oul d be pr ejudi ced thereby. 4. An inves tmentmay notmak e a claimunderthis Section.

Set tl ement Of A Clai m Through Consultation And Negotiation

str. 57The di sputing parties shouldf irst attempt tosettle a clai m throughconsult ation ornegotiation.

Notic e Of Intent To SubmitA ClaimTo A rbi t ration

str. 57The dis putinginvesto r shal l deliv ertothedisputing Partywri tte n notice of i tsintention to submita claimtoarbitr ati on atleast 90 daysbefore theclaimissubmitted, which notice shall specify :

- (a) thename and addressof thedisputing investor and,where a cl aim ismade under Article 10.21, thename and address oftheenterpr ise;
- (b) the provis ions of thi s Agreement all eged t o have been breachedand any other relevant provis ions;
- (c) theissues and thefact ualbasis fortheclaim; and
- (d) therelief soughtand t he appr oximateamount ofdam agesclaimed.

SubmissionOf A Claim To Arbitr at ion

str. 581. Providedt hatsixmonths have elaps ed si nce t he eventsgivingr iseto a cl aim, a di sputing inv estor may submitt he cla im t o ar bi t r ation under:
2. (a) theICSID Convent ion,prov idedthatboththedisputing Partyand thePartyof th e in vestor ar e parties toth e Conv ention ;
3. (b) t he Additional Facili tyRulesofICSID,prov idedt hateither thedisputing Partyorthe Partyoftheinvestor ,butnotboth, isa party tot he ICSID Convention; or
4. (c) theU NCITRAL Arbitr at ionR ules. 2. The applicable arbitra tionrules shall governthear bitrati on exce pttot he exten tmodifiedby this Sectio n.

Art icl e 10. 25

str. 58Conditi ons Precedent To SubmissionOf A Claim To A rbitration

1. A disputing i nvestor may submita cl aim underArticle 10.20toarbi tration onlyif :
2. (a) theinvestor and t he enterpris e,thati s a jur i dical personthatthei nvesto r owns or control s, directly or indi rectly , have not submit ted the same claim befo r e any administrative tribuna lorcourtofthedis put ingParty;

(b) theinves torconsen tstoarbitra tioninaccordan ce withtheprocedures setouti n thi s Ag reement; and

(c) theinvestor and,whe retheclaimisforlos s ordamage toan i nt erest inan enterp ris e oftheother Partytha tisa jurid ical personthat theinvestor owns orcont rols, dir ectl y or indirectly, theente rpr ise, waive their right to i ni tiate beforeany administr ati ve tribuna lorcourtunderthel aw ofa Party, orother di sputesett lementproced ur es, any proceedingswit h respect tothemeasureofthedisputi ng Partythat isalleged t o be a breachreferred toinArticle 10.20, exceptforproceedi ngs forinjunctive, declaratory or otherextrao rdinar y relief, not inv ol ving the payment of damages, befo re an administrative tribuna lorcourtundert he law ofthedi sput ingPart y. 2. A disputing i nvestor may submita cl aim underArticle 10.21toarbi tration onlyif :

(a) boththeinvesto rand theenterprise t hatisa juridical persont hattheinv esto row ns or control s, directly or indi rectly , have not submit ted the same claim befo r e any administrative tribuna lorcourtofthedis put ingParty;

- (b) both the inv es torand the enterprise consentto arbit rat ion in accordancewith the proceduressetoutinthi sAg reement; and

(c) both the inv est or and the ent erprise waive theirright s to initiate before any administrative tribunal orcour tundert he law of a Par t y,or ot herdispute settl em ent procedures, any proceedi ngswithrespec ttothemeasureofthedisputin g Partythat is allegedt o be a breach refe rr ed to in Article 10.21,except for proceedin gs for in junctive, declarator y or otherextrao rdinary relief, not involvi ng the payment of

damages, beforean administrat iv e tribu nalor cour t under thelaw of thedisputing Party. 3. Once a disputingi nvestor concerned submitsthe disputefor resolu tion befo re any administrative tribunal or courtunderthelaw of a Party, theinv estor may nottherea fte r alle ge t he measuretobe such a bre ach referred t o inA rticle 10.20or10.21inan arbit rat ionunderthis Section. 4. A consentand waiverrequi redby this Art i cleshall be in w riting, shall be del iveredto the disp uting Party and sha ll be incl uded inthesubmission ofa clai m toarbitration. 5. Only where a disputing Partyhasdeprived a disputing i nvestor ofcontrol ofan enterpr i se:
4. (a) a w aiverfrom t he ent er prise under subpar agraph1(c)or 2( c) shal l not be r equired; and
5. (b) Article 10.24.1 (b)shall notbe applicable.

ConsentTo A rbitration

str. 591. Each Partyconsentsto t he submissionof a claim to arbi tration in acco rda nce with the proc eduressetoutinthis Agreem ent . 2. The cons entgi ven underparag raph1 and thesubmissi on by a dis puting inv estor ofa claimt o ar bitr ation shall satisfy ther equir em ents of :
3. (a) ChapterIIof theICSID Convention(Jurisdict ionof theC entre) and th e Additional Facility Rulesforwritten consent oft he parties; and
4. (b) Article I IoftheNew York Conventionforan agreementinw ri t i ng.

Nu mber Of Arbitrators And Method Of Appointment

str. 59Except in respect of a Tribunal es tabli shed under Article 10.30,and unlessthe di sputing parties ot herwiseagr ee,theTribunal shall comprisethree arbit rat ors, one arbitrator appoin tedby each of thedisputing parties and theth ir d,who shal l be thepr es i dingarbi trat or,appoint ed by agreement betweenth e disputing parties .

Const itutio n O fA Tribun alWhen A PartyFails To A ppoint A n Arbitrat orO rThe Disputing Parties Are UnableTo Agree On A Presi dingArbitrator

str. 591. The Secretar y- General shal l serve as appointingauthority for an arbi t r ationunder this Section. 2. Ifa Tribunal, othe r thana Trib unalestablished underArti cle10.30, hasnotbeen constitut ed within90 days from t he datet hata claimissubmitt ed toarbitra t ion,theSecretary - General ,on the request ofeither dis put ingpart y,sha ll appoint, inhi s orherdiscretion, thearbi t rator or arbit rators not yetappoin ted, exceptthat thepresiding arbit rator shall be appointed inaccor dancewithparag raph3.

str. 603. The Secretar y- General shal l appoi nt the presiding arbitr atorfrom the roster of presiding ar bitr ators referred toinparag raph4,providedthat thepresiding arbit rator shall notbe a nat ional of thedis putin g Par ty or a nat iona l of t he Partyof th e disputing i nvestor. In th e eventthatno such presiding arbitrator isavailabl e t o serv e,theSecretary - Generalshall appoint, fr om theICSID Panelof Arbitrators, a presid ingar bitr ator who isnota nat ional ofeither ofthePart ies. 4. On thedateof entr y int o forceof this Agreem ent,theParties shall establish, and thereafter maintain, a roster of30 presi di ng arbitrators, none ofwhom may be a nat ional ofa Party, meetingt he qualifications oftheConventi on and r ulesr eferred toinArt icle 10.24and exper ienced ininternational law and investment matter s.The ro ster mem bersshall be appoin tedby m ut ualagreement.

AgreementTo AppointmentOf Arbitra tors

str. 60Forpurposes ofA rtic le39 ofth e ICSID C onvention and A rticle 7 ofScheduleC totheICSID Add itional Facility R ules, and witho ut prejudice t o an objection to an arbi t rator based on A rticle 10.28.3 oron a groundother t han nat ionali t y:

(a) the dis putingPart y agr ees to the appointmentof each i ndividual mem ber of a Tribuna l es tablished undertheICSID Conventionor theI CSID Additio nalFacilit y Ru les;

(b) a disputing inv est or ref erredtoinArticle 10.20may submita clai m toarb it ration ,or continuea claim,under the ICSID Conventionor th e ICSID Additional Facility Ru les,only on condi tion thatthe disputing investor agr ees in writi ng to the appoint ment ofeachi ndividual mem beroftheTribun al; and

(c) a dis putingi nvest or refer redtoinArticle 10.21.1 may submi ta claimtoarbit ratio n, or continuea claim ,undertheICSID Conventionor theICSID Additional Facilit y Ru les, onlyon condit ionthat t he disputing investor and theenterpri seagreeinwriting totheappointment ofeachindiv idual m ember oftheTri bunal.

Consol idatio n

str. 601. A Tribunales tablished under t his Arti cle shallbe est ablishedunder the UNCITRAL Arbitration Rules and sha llconduct itsproceedingsi n accordancewit h t hos e Rules,exce pt as mod ified by t hisSection. 2. Wh erea Trib unalest ablished underthis Article issati sfi ed that claimshave beensubmit tedto ar bitr ation underA rticle 10.24tha thavea question oflaw orfact incomm on,theTribunal m ay,inthe inte rests offair and ef ficien tre solution oftheclaims, and after hearing t he disputing parties, by order :

(a) assume jurisdi cti on over, and hearand determine together, all orpart oftheclaims; or

(b) assume j urisdiction over,and hear and determineone or more of the cla ims, the determination ofw hi ch it believ eswould assist intheresol ut ionoftheother s.

3.

str. 61A disputing par tythat seeksan orderunderparagraph 2 shall request theSecre ta ry - Generalt o establ isha Tribunal and shall specif y intherequest:

(a) thename of t he disputi ng Partyor disputing invest orsagainst w hi ch the orderi s sought; - (b) thenature oftheordersought ;and
- (c) thegroundson wh ichth e order issought. 4. The disputing partyshall delive r tothedisput ingPartyor di sput inginves t or s agai nst which theorderissoughta copy ofth e re quest. 5. Within 60 days of re ceiptof the request, the Secret ar y- Generalshall es tab lish a Tri bunal compris ing threear bitr ators. The Secretary - Generalshall appointthepresidi ng arbitrator from the roster referred to in paragraph4 of Articl e 10.28.In theeventthatno such presiding arbi t rator is avai lableto serve,the Secr etary - General shallappoint, from the ICSID Panel of Arbitrators, a presiding ar bitrator who i s nota nati onalofeither Party. The Secretary - Generalshall appoint t he two othermembers from the roste r re fer red to in paragraph4 of Arti cle10.28 and t o the ext ent not avai lable from that r oster, fr om theICSID PanelofArbit rators, and totheextent notavailabl e from that Panel, inthediscretion oft he Secretary - General. O ne member shall be a nati onalofthedisputing Part y and one member shall be a national ofthePart y ofthedisputing investors. 6. Wh ere a Tribunalhas been est ablished under thisArticle, a disputing inv es t or thathas submitted a claimtoar bitr ati on underA rticl e 10.20or10.21and that hasnotbeennamed ina req uest made underparag raph3 may m ake a writ tenr equesttotheTribunal that i tbe i nclud ed inan order made underparagrap h 2,and shall specif y inthere quest:

(a) thename and address oft he disputi ng investor;

(b) thenature oftheordersought ;and

(c) thegroundson wh ichth e order i ssought. 7. A dis putinginv estorreferred to in paragraph6 shalldeliver a copy of itsrequest to the disp uting parties named i n a req uest mad e underparagraph 3. 8. A Tribunal established underArt icle 10.24shall nothave jurisdict i on todecidea cl aim,or a part ofa claim, overwhich a Tribunal establ ishedunderthis Article hasassumed jurisdiction. 9. On applicati on of a di sputingparty, a Tribunalestabli shed under thisArticle, pendingits decision underparagr aph 2,may orderthattheproceedi ngs of a Tri bunalestablished underArticle 10.24be stayed, unless thelatter Tribunal hasalr eadyadjourned its proceedings.

Notic e

str. 611. A disputing Par tysha lldeliv ertotheSecretariat, within15 days of recei ptby thedisputing Part y,a copy of:

(a) a req ues t for arbitration m ade under paragraph(1) of A rt i cl e 36 of t he ICSID Co nventio n;

(b) a notice of ar bitr ationm ade underArti cle2 of ScheduleC of theICSID Additional Facility Rules; or

(c) a notice ofar bitr ati on gi ven undertheU NCI TRA L Arbit rat ionRules. 2. A dis puting Part y shall deliv ertotheSecretariat a copy ofa request ma de underparagrap h 3 ofArti cle10.30:

str. 62- (a) within15 days ofreceipt ofth e request, i n thecaseofa request made by a di sputing i nvestor; or
- (b) within15 days ofm akingther equest, inthecaseofa request made by thedispu tin g Party. 3. A dis puting Part y shall deliv ertotheSecretariat a copy ofa request ma de underparagrap h 6 ofArti cle10.30w ithin 15 days ofrece ipt oft he request . 4. The Secretariat shall m aintai n a publ icregister ofthedocumentsreferred t o i n parag ra phs 1,2 and 3. 5. A disputing Part y shall deliver totheother Party:
- (a) written notice of a cl aim th athas been subm i tte d toar bit ration no later t han 30 days af ter thedatethat theclaimissubmitt ed;and
- (b) copies ofall pleadi ngsfiled i n th e arbitrat ion.

Partic ipa tion By A Part y

str. 62Upon wri tten notice tot he disputing part ies, a Party m ay make submissions t o a Tribunal on a question ofinterpretation oft hisAgreement.

Doc ume nts

str. 621. A Partyshall be entit ledto receive from thedisputi ng Party, atthecostof therequesting Part y,a copy of:
2. (a) theevidence that hasbeentendered totheTribunal; and
3. (b) thew ritten arg ument oft he disputi ng parties. 2. A Part y receiv inginfo rmat ionpursuant toparagr aph 1 shal ltreat thei nf ormationasifit were a di sputing Party.

PlaceOf Arbitrati on

str. 62Unless the disputing par tiesagr ee ot herwis e, a Tri bunal shal l hold an arbitr ationi n the terr itory ofa Party th atispart y totheNew Y orkConventi on,selected inaccorda ncewith:

- (a) theICSID Additiona l Facility Rules i f the arbit rati on isunder t hose Ru lesor th e ICSID C onvention; or
- (b) theU NCITRAL Arbitr at ionR ules i ft he arbi tration isunderthoseRules .

Go verning Law 1. A Tribunal esta bli sh ed underth isSect ionshall decide theissues indispute inaccordan ce with this Agreement and appli cabler ulesofinternational la w .

str. 632. An interpretati on by theComm issi on ofa pr ovision of this Agreement shal lbe binding on a Tribunal es tablis hed underthis Secti on.

I nterpretation Of Annexes

str. 631. Wh erea disputing Partyasserts asa defense that themeasureal legedt o be a breachiswithin thescopeofa res erv ation or excepti on se toutinA nnex IorA nnex II, upon re questofthedisputing Part y,theTrib unalshall r equest theinterpret ation oftheCom missionon theissue. The Comm ission, within 60 daysofdel iver y ofth e reque st, shall submitinwrit ingit s interpret ation totheTribun al. 2. Furtherto paragr aph 2 of Article10.35,a Com mission in terpretatio n submittedunder paragraph1 shall be bindingon theTri bunal.IftheCom missionfails to submitan interpretation within 60 days, theTribunal shall decid e theissue.

Exper tReports

str. 63Without prejudice to the appoin tment of ot her ki nds of experts where authorized by the applicable arbitration rules, a Tribunal, atther equestof a disput ing par ty or,unles s thedisputing parties dis approve, on its own initi ati ve,may appoint one orm oreexpert s tor eport toit inwriting on any factual issu e concer ning envir onmental,health, saf ety or otherscie ntific mattersraised by a disp utingpartyin a pr oceeding , subj ectt o such termsand conditions as thedisputing part i es m ay agr ee.

I nterim MeasuresOf Protect ion

str. 63A Tribunal may ord eran interim m easureof protection topreserve therights of a dis put in g party, or to ens ure thatthe Tribun al' s jurisdiction ismade fullyef fect ive,including an orderto preserveevidencein th e possessio n or cont rolof a disputing partyor to protect the Tr i bunal's jur isdicti on.A Tribu nalm ay notorderatt achment orenjoin theappli cation ofthemeasurealleged t o constitute a breachreferred t o in Article 10.20 or 10.21.For pur pose s of this parag raph,an order incl udesa recommendation .

Final Award

str. 631. Wh erea Tribu nalmak esa final award against a Party, theTribunal may award,sepa r ate lyor incombination, only :
2. (a) monetarydam agesand any applicable interest; and
3. (b) restitution ofpro pert y,i n which caset he aw ardshal lprovide that thedis puting Party may pay monetarydamagesand any applicable interest inli eu ofr est it ution. 2. A Tribunal may alsoawardcost si n accordance withtheapplicable arbitration rul es. 3. Subjecttopar agraph s 1 and 2,where a claimi s made underArticl e 10.21.1:

str. 64(a) an aw ard of rest itut ion of pro pertyshallprovidethatr estitution be made to the enterprise;

(b) an award ofmonetarydamages and any appli cablei nterest shall pr ovidethat thesum be paidtotheenterpri se;and

(c) theawardshall pr ovi de that i tismade wit houtprej udi ce toany right that any perso n may haveint he relief underappl icab ledomestic law. 4. A Tribunal may notordera Partytopay punitive damages.

Finality And Enforcem entOf An Award

str. 641. An award made by a Tribunalshall have no bindi ng forceexceptbetween the disputing parties and i n respect oft he partic ul arcase. 2. Subjecttoparag raph3 and t he appl icable reviewpr ocedureforan i nterimaward,a disputing party shall abideby and comply withan aw ardwithout delay. 3. A disputing partymay notseekenfor cementofa final award unt il :
4. (a) inthecaseofa f inal award made undert he ICSID Convention:

(i) 120 dayshave elapsed fr om thedatetheawardwas r ender ed and no di sput i ng par tyhasrequested r evisi on orannulmentoftheaward; or

(ii ) revision orannulmentproceedin gshavebeencomplet ed;and

(b) in the cas e of a finalaward under the ICSID Addit i onal Facil i ty Rules or th e UNCI TRAL Arbitration Rules:

(i) threemonths have ela pse d from the dat e the award w as renderedand no disputi ng party hascommenced a pro ceed ingtor evise, setaside or annulthe award ;or

(ii ) a courthas dismi ssedor allowe d an appl icat iontore vise, setasideor annul theaward and t hereisno fu rthe rappeal . 4. Each Partyshall prov idef orth e enforcement ofan award inits territory. 5. Ifa disputin g Par ty fails to abideby or comply with a f inalaward, the Commission, on deli veryof a request by a Par tywh ose investor was a partytothearbitration, shal lestablish a panel underArticle 19.6. The requesti ng Partymay seekinsuchproceedings:

(a) a dete rminat ion thatthe f ailure to abide by or comply with the finalaw ard is in consis ten twiththeoblig at ionsofth isAgreem ent; and

(b) a recommendationthat t he Party abideby orcomply withthefinal aw ard. 6. A disputing i nvest or may seek enfor cem ent of an arbi t r ationaward under t he ICSID Conventionor theNew York Conventionregardl essof whetherproceedings have been takenunder paragraph 5. 7. A claimthat issubmit tedtoarbit rat i on underth isSection shall be conside redtoarise outofa commercialrelation shi p ortr ansac tion forpurposes ofArti cleIoftheN ew York Convention.

Time when a Claim isSubm i tted toArbitration

str. 651. A claimissubmitted toarbit rat ionunderthis Section when:
2. (a) thereques tforarbitration u derpar agraph1 of Article 36 of theI CSID Conventio n hasbeenrecei ved by theSecr etar y- General;
3. (b) the noticeof arb itra tionunder Articl e 2 of Schedul e C of the I CSID Additiona l Facility Ruleshasbeenrecei ved by theSecr etary - G eneral; or
4. (c) thenotice ofarbitration giv en undertheUN CITR AL Arbit ra tion Rulesisreceived by th e disputing Party.

Service ofDocum ents

str. 652. Delivery ofnotice and othe r documentson a Partyshal lbe made totheplacenamed forthat Part y inAnn ex 10.41.2.

Receipts underInsura nceorGuaranteeContract s

str. 653. Inan arbitration u derth isSection, a Partyshall notassert, as a defens e,counterclaim, right ofsetoff orotherwise, th atthedisputing invest orhasrece ivedorw ill receive, pursuant toan insurance orguarantee contract ,ind em ni fica tion orot hercompensat ionforal lorpart ofits alleg ed damages.

Publi cat ionofan Award

str. 654. Annex 10.41.4 appl iestothePartiespecified inthat A nnex withrespect topublication ofan award.

Exclusions

str. 65Withoutprejudice totheapplicab ility ornon- applicability ofthedi sput e se ttlement provision s ofthis Secti on orofChapter19 t o ot heractions takenby a Par typursuant toA rticle 20.2 ,a decision by a Partytoprohibit orrestric ttheacquisi t ionof an investm entinit s ter ritory by an investor ofthe otherParty, or investm entof such an inves tor, pursuant t o thatArticle shal l not be subjec t to such prov isi ons. Section D -Investment And Cross - B ord erTradeI n Services Com mittee

Art icl e 10. 43

str. 65Inve stmentAnd Cross - B order Trade InService sCom m ittee

1. The Parties her eby es tabli sh an I nvestmentand C ross - BorderTrade inServices Commi ttee, compris ingrepresentativ esofeachParty, inaccordance withAnnex 10.43. 2.

str. 66The Committee shallmeet atleast once a year, or in any time atr equestof a Partyor the Commission. 3. The Commit teeshall perform , inter al ia ,thefollowing f uncti ons:
4. (a) tooverlook theexecutio n and administration fthis Chapterand Chapter11;
5. (b) to discu ss the subje ct s of bilat eralinterest r egardingi nvestment and cross - borde r servi ces;and
6. (c) toexamine subjec tsrelat ed toi nvestmentand cross - borderservices, wh icharebein g di scusse d atother intern ational fora.

ANNEX 10.9.6

ANNEX 10.11

ANNEX 10.20

Chile

str. 68The pl aceforthedeliv er y ofnotice and other documentsunderSection C forCh ile is: Dire ccionde A sunto sJur íd icos delMi nisterio de Relaciones Exteriores de l a República de Chile Morandé 441 Santiago, Chile

Korea

str. 68The pl aceforthedeliv er y ofnotice and other documentsunderSection C forKorea is: OfficeofIn ternation alLegalAffai rs, Ministry ofJusti ceoftheRepublicofKorea Governmen tComplex, Kwacheon Ko rea

Chile

str. 68Whe re C hileisthedisputing Par ty , either Chile or a disputing investor tha t isa partyto ar bitr ation may make an award publ i c.

Korea

str. 68Whe re Korea isthedi sputing Par ty,either Korea or a disputing investor thatisa par ty t o ar bitr ation may make an award publ i c.

ANNEX 10.43

Defin itions

Scope And Coverage

str. 691. ThisChapterapplie s tomeasuresadoptedor maint ainedby a Partyrelating tocross - border tr ade i n services by serv iceprov iders oftheot herParty, including measureswithrespect to:

-

str. 70- (a) theproduction, di stribu t i on,marketing, sale and deli ver y ofa service;
- (b) thepurchase oruseof ,orpaym entfor, a service ;
- (c) theaccesstoand useofdistribut io n and transpo rt ation system s inconnection withthe provision ofa service;
- (d) thepresence i n its te rr it ory ofa service prov ider oftheother Party; and

(e) theprovis ion of a bond or ot her form of financial sec urity as a condition forthe provision ofa servic e.

2. For purposesof th isCh apter, measuresadoptedor maintai ned by a Partymean m easures adoptedormaintained by governmentornon- governmental bodiesintheexercise ofany regulatory, administrative orother governmental author ity del egated toit by tha tgovernment. 3. ThisChapterdoesnotapplyto:

(a) cross - border trade infinanci alservices;

- (b) airservices, i nclu dingdomesticand interna t ion alai r transportation services, whether sche duled or non- schedu led,and re late d services in supportof airservices, ot her th an:

(i) aircraft repa ir and m aint enance servicesduring w hi ch an ai rc r aft is wit hdrawn from serv ice;

(ii ) specialty air servi ces;

(iii ) glidertowing , para chute jumping,aerial construc tion, hel i - logging, aerial sigh tsee ing; and

(iv ) computerized reserv ati on s ystem;

- (c) governmentprocur em entby a Part y ora state enterp ri s e;
- (d) subsidies or gr antspro vide d by a Partyor a state ent erpr ise, i ncluding government support ed loa ns,guarantees and i nsurance; and

(e) services pro vid ed intheexer cise ofgovernmental authority suchasl aw enforcement, correctional services, i ncome secur ityor insurance, socialsecuri ty or insur ance, social welfare, public education, publi c training, health, and child care. 4. Notwithstand ing subparag raph 3(e), ifservices prov ided in t he exerc iseof governmental authority are provid ed in the te rrit ory of a Par t y such as law enforcement, correctional services, income security or insur ance,soci alsec urity or insurance, soci al w el fare, publiceducation, public tr ain ing,health, and childcar e on a comm ercial basi s or in competi t ion with one or more serv ice prov iders, suchserv ices shall be coveredby theprovisi onsofthis Chapter. 5. Nothinginth isC hapter shal lbe construed toimpos e any obligation on a Par t y withrespec tto a nationa loftheothe r Partyseek in g accesstoits employment market,or employed on a permanent basis i n i tsterritory, ortoconferany r ight on that nat ional withrespec ttosuchaccess oremployment.

National Treatment

str. 71Each Partyshall accordt o ser vices and servi ce pro vider s oftheotherPartytreatment no l ess fav orable th an that it accords, inlik e circ umstances, t o its ow n services and serv iceprovide rs.

LocalPresence

str. 71Neit her Partymay require a serv iceprovider of theotherPartyto estab lishor ma intain a representative office orany for m ofente rprise, ortobe resident, i n its territory asa condition forthe cr oss - border provis io n ofa ser vice .

Reservations

str. 711. Articles 11.3and 11.4do notapplyt o:
2. (a) any existing non- conf ormingm eas urethat ismaintained by:
3. (i) a Partyatthenati onallevel, assetoutinits ScheduletoAnnex I;or
4. (ii ) a local government;
5. (b) thecontinuation or prompt r enewal of any non- conformingmeasure referred t o i n subparagraph (a); or
6. (c) an amendment toany non- conformingm easur e r eferred toinsubparagr aph (a)toth e extentthattheamendment does not decreasetheconformityof themeasure,as it existed immediately bef oretheamendment, withA rt icles 11.3and 11.4. 2. Articles 11.3 and 11.4 do not applyto any measure thata Par t y adoptsor maintains with resp ecttosectors, subsect orsoractiv ities, assetouti n its ScheduletoAnnex II.

Quantita tive Restrictions

str. 711. Each Partyshallsetout in itsScheduleto Annex I II any quanti tative restriction t hat it mainta insatt he natio nall evel . 2. Each Party sha ll notify th e other Partyofany quant it ative res triction that it adopts ,other than attheloc algovernmentlev el ,aft erthedateofentry into force ofthis Agreement and shall se toutthe restrict ioninits ScheduletoA nnex III. 3. The Partieshall per iodi cally, butinany eventatleast everytwo years, endeav ortonegotiate theliberalization orremovaloft he quantitative r strictions setoutinAnnex II Ipursuant toparag ra phs 1 and 2.

Futur e Liberalization

str. 711. Through futu re negotia tions, to be sc heduledeveryt wo yearsby theCommission afte r the dateofentry i ntofor ce ofthis Ag reement, thePart i eswill further deepenliberalization witha view to reachingthe reduction or elim inat ion of the remaini ng restrictions scheduledi n conformitywith Article 11.5,on a m utualy advantageousbasisand ensuri ng an overall balanceof ri ghts and obligat ions . 2. Ifa Partymak es any f urth erliberal ization, inconformity w ithArti cle11. 5 by an agr eement witha non- Party, it shall affor d adequate oppor tunit y totheot herPartytonegot i atetreatment granted therein on a mutually advant ageousbasis and witha view tosecuri ng an overall balan ce ofrights and obligat ions .

Li beraliz ation Of Non - Disc rim i nato ryMeas ures

str. 72Each Partyshall setoutinits ScheduletoAnnex IV its commitm entstolibe ral izequantitativ e restrict ions ,licens ingrequirem ent s,perf ormance requi rementsorother non- discri minatorymea sures.

Procedures

str. 72The Commission shall establ ishprocedu resfor:

- (a) a Partytonotify and i ncl ude inits rel evantSchedule:

(i) quantitativ e res t ricti onsi n accordance withArticle 11.6.2;

(ii ) commitmentspursuantt o Article 11.8; and

- (iii ) amendments ofmeasuresr eferr ed toinA rti cle11.5.1(c); and
- (b) consultations on r es er vati ons,quant i tative restrict i ons orcom mitmentswitha vi ew t o fur th erl iberalization.

Lice nsingA nd Cert ificat ion

str. 721. With a view to ensuri ng thatany measure adoptedor mainta ined by a Partyrela ted to requirements and proced urest o thelicensing orcertification ofnati onalsof theotherPar tydoes not constitute an unneces sarybar rier to cross - bordertradein services, each Partyshall endeavourto ensu r e that any such m easur e:
2. (a) isbasedon objec tive and tr ansparent cri ter ia, such as competence and theability to providea ser vice;
3. (b) isnotmore burdensome thannecessary toensurethequal ity ofa service; and
4. (c) doesnotconstitute a di sguised r estriction thecross - borderprovision ofa service. 2.

str. 73Wh ere a Partyrecognize s, unilaterally or by an agreement or arrang em ent,education, experienc e,licenses orcertifi catio ns obtai ned intheterritory ofa non- Party, t he Partyshal laffor d the other Party an adequate opportunityt o demonstrat e that educat ion, experien ce, licensesor cert ificat ionsobtainedin the oth er Party ' s territory shoul d alsobe recog nizedor to concludean agr eement orarrang em entofcomparableeff ect. 3. Annex 11.10applie stomeasuresadoptedorm aintained by a Par tyrelating t o thel i censing or cert ificat ionofprofesi onalser vic e pr oviders.

D enial Of Benefits

str. 73Subjectto priornotifi cationand consultat i on i n accordancewith Articles 17. 4 and 19.4,a Part y may deny thebenefits ofthis Chapt ertoa service provider of theotherPartywhere th e Party establ ishes that these rv iceisbei ng providedby an enterprise that i s owned orcontrol ledby persons ofa non- Party and th athasno substan tive business acti vities inthet erritory oftheother Party .

Objecti ves

str. 731. The objectiv e ofthis Ann ex i s theestablishment ofrul estobe followedby theParties inthe reducti on and gradualeliminati on, within theirterritories of the barriers in the renderingof prof essional services.

Processing ofApplicat ionsforLicens esand C ertificati ons

str. 732. Each Partyshal l ensurethatitscom petentaut hor iti es,w ithin a reas onabletime aft er the submiss ionby a national oftheothe rPartyofan appli cation fora licens e orcertificat ion :
2. (a) wh ere the application i s com plete, make a dete rminat ion on the application and in for m theappl icant ofthat deter minatio n;or
3. (b) wh eretheapplic ation isnotcomplete, informt he appl icant, witho utundue delay ,of th e status of theapplic atio n and theadditional in formati on that isrequired underthe Party's law.

DevelopmentofProf essional St andards

str. 733. The Parties shallencourag e the relevant bodi es in their respective territorie s to develop mutuallyacc eptablestand ar ds and criter i a for l icensing and cert if ication of profess iona l service prov iders and toprov ider ecommenda t ionson mutualrecogni tion t o theCommission. 4. The standard s and cr it eriar efe rredto i n paragraph3 may be developedwit h regardto the following matters:
3. (a) education -accr editation ofschoolsoracademicprograms;
4.

str. 74(b) examination s - qualify ingexaminations forlicensing, includi ng alt ernative methods ofass ess ment suchasoral examinations and int erviews; - (c) experience -lengt h and nature ofexper ience required forlicensi ng;
- (d) conductand eth ics-standar ds of professional conductand thenature of disc ip lin ar y actio n fornon- confo rmitywitht hosestandards;
- (e) professional developmentand re - certifi cat ion - continuing educationand ongoing requir em entstomaint ainprofessional certification ;
- (f) scopeofprac tice -exten tof, orlimitations on,permiss ible activit es;
- (g) localknowledge - requirements for knowledge of such mattersas locallaws, regu lations, la nguage,geogr aphy orcl imate; and
- (h) consumer pr otec tio n - alt er nati ves t o residencyrequirements, including bondin g, professi onal liability insu rance and clientresti tut ion funds,to provide for the protection ofconsumers. 5. Upon receipt of a r ecom mendationreferred toinparagraph3,theCommission shal lreview the rec ommendation wit hi n a reason able time to determinewhether itis consistent with this A gre ement.Based on t he Comm ission's revi ew ,each Partyshal lencourageits r espec t iv e competent authoriti es, w hereappropriate, toimpl ement therecommendationwithi n a mutually agreedtime.

Tem poraryLicensing

str. 746. Wh eret he Parties agre e,each Partyshallencourag e therelevant bodiesin it s territory to developproce duresfo rthet em porary licensi ng ofprofessional service pro viders oftheother Party.

Review

str. 747. The Comm ission shal l periodi cal ly, at least once every thr ee years, r evie w the implementation ofth isSection.

D ef in itions

str. 74Forpurposes ofthis Ch apter:

authoriz ed equipment means ter minal or otherequipment thathas been approved for attachmen t to thepubli c telecommuni cations tr ans portnetwork in acc ordancewith theconformity assessment procedures ofa Part y;

confor mity assessmentprocedures m eans'conformi tyassessment procedures' asdefi ned i n Article 9.1and includes t he proc edures establ ishedinAnnex 12.1;

enhanced or value - added services m eans telecommunicati ons services employingcomputer proc essing applications that:

- (a) act on the f or mat, content , code, protocolor similaraspectsof a custo mer's tr ansmitted informati on;
- (b) provide a customerwithadditional, different orrestructured informat ion; or

- (c) involve customerinte ractio n withst oredinformation;

intracorporate comm unicat ions m eans tel ecommunicationsthroughwhich an enterp ri se communi cates :

- (a) internally orwithoramong i tssubsidi aries, branchesoraff iliates, asdefined by each Party, or
- (b) on a non- commercialbasis withothe r personsth atar e fundamental totheeconom ic activity oftheenterprise and that have a continuing cont ract ualrel

Scope And Coverage

str. 761. ThisChapterappl i esto:

(a) measuresadoptedor maint ainedby a Partyre lating to accessto and use of publ i c telecommunicati ons t ransp ortnetwork s or services by personsof the othe r Part y, in cluding access and useby suc h pers ons oper ating private networks;

(b) measuresadoptedor maintai ned by a Partyrelat ingtotheprovision of enhancedor value - added services by personsof th e otherPartyin the ter ri tory, or acrossthe borders, ofa Party; and

- (c) standards - related m easu resre lating to attachment of t erminal or otherequipment t o public telecom munications t ranspor tnetworks. 2
2. Exceptt o ensurethat per sonsoperating broadcast st ati ons and cabl e systemshave continued acces s toand use ofpublic tele comm unicati onstransp ortnet works and services, t hisChaptershall not applytoany measureadopt ed or m aintained by a Partyrela t ingtobroadcas tor cabl e distribution of radio ortelevision prog ramming. 3. Nothinginth isChapte rsha ll be construed t o:

(a) require a Par tytoauthoriz e a personoftheother Partytoestabl ish, construct, acquire , lease, operate or prov ide t ele com municat ions t ransport network s or telecommunicati onstra nspor tserv ices;

(b) require a Part y, or require a Partyto compel any per son,to establish, construct, acquire,lease,operate or prov id e t elecommunicati ons transport networks or telecommunicati onstra nspor tserv ices notoffered tot he public generally;

(c) prevent a Par tyfrom prohibiti ng personsoperating priv atenetworksfrom usingthei r networks to providepublictele communicationstransport network s or se rvicest o th ir d persons; or

(d) require a Part y tocomp elany personengagedint he broadcast orcabl e distribution of radio ortelevision programming tomak e availabl e its cabl e orbroadcast faci litie sasa public te lecommunications t ranspor tnetwork.

Articl e 12.3

str. 762 For equipment thatisnot connecte d to the publ ic te lec ommunica tionst r ansportnetwork or not re fe rred toint hi s A gr eement,thePar tie sshall abi de by th e stan dard- rel ate d provisions ofChapter 9. A cces s To And Use Of Publi c Telecommunicat ionsTransport N etworksA nd Services

1. Each Partyshall ensur e tha tpersonsof theotherPartyhave accesstoand use of any public telecommunications tr anspor t network or service, incl uding private l eased circuits, offeredin its terr itory or across its border s f or theconductof t hei r business, on reasonable and non- discriminatory ter ms and conditions, incl udingasthose setoutinpar agr aphs2 through8. 2. Subjectto par agr aphs 6 and 7, each Partyshall ensurethatpersonsof theotherPartyare permitted to :
3. (a) purchaseor lease, and attachterm inalor otherequi pment tha t inter fac es with th e public telecom munications t ranspor tnetwork;
4. (b) interconnect pr iv ate leased or ow ned circuit s w ith public telecommunicati ons tr ansport networksintheter rito ry ,oracr osstheborders, ofthat Party, includ ingthose foruse i n providing di al - up accesst o and from their cust omers or users, or with circuits le as ed or own ed by another per son on ter ms and condit ionsmutuallyagreed by thosepersons;
5. (c) performswitch ing, sig nal ingand processing functions; and
6. (d) useoperating proto colsoftheir choice. 3. Each Partyshallensu re thatthe pri ci ng of publ i c telecommunication s transport serv i ces ref l ects economic costsdir ectl y re lat ed toproviding theservices. 4. Each Partyshall ensu ret hatper sons of theotherPartymay use publicte lecommunications tr ansport networksor ser vicesforthemovement of information ini tsterritory or across its borders, incl udi ng forintraco rporate communications, and foraccess toinformatio n cont ainedindatabasesor otherwise stored inm achin e- r eadable f orm i n thet erri toryoftheother Party. 5. Further to Art icle 20.1,nothin g in this Chaptershall be const rued to pre vent a Partyfr om adopting orenforcing any measure necessary to:
10. (a) ensurethesecurity and confi dent iality ofmessages;or
11. (b) protecthepriv acyofsubsc ribe rstopublic tele com munications transport network s or servi ces. 6. Each Party sha ll ensurethat ,furt hertoArticle 12.5, no condition isimposed on access toand useofpublic telecommunications tr ansp ort networksorservices, ot herthant hatnecessary to:
13. (a) safeguard t he public service responsibilities of pr oviders of public telecommunicati ons transp ortnetwor ks orserv ices, i n particular their ability toma ke th eir networksorservi cesavai labl e tothepubl i c generally; or
14. (b) protect the t echnicalint egr ityof publi c telecommuni cations transport network s or servi ces. 7. Provided thatconditi ons f or accessto and use of publictelecommunicat io ns transport networksorservicesat isf y thecr iter iasetouti n paragraph 6,suchconditions may include:
16.

str. 78(a) a res triction on r es al e orshar ed useofsuchservices; - (b) a requirement touse specifi ed technical interfaces ,including interfa ce pro tocols, fo r i nter connection withsuchnet worksorservices;
- (c) a restriction on inte rco nnectionof pri vate leasedor ow ned cir cuitswith such networksorservices orw ith cir cuits leased orowned by another person; and
- (d) a licensing, per mit , reg is tr ationor notifi cationpr ocedure which, if adopted or maintai ned, is transp are nt and applica tions fi led thereunderare pro cessed expeditiously.

Articl e 12.4

str. 78Conditi onsForThe Provisi on Of EnhancedOr V al ue- Added Services

1. Each Partyshall ensu rethat:

(a) any licensing, per mit ,regi stra tion ornotificat i on procedure that it adoptsormaintains relating totheprovisio n ofenhancedorvalue - added services ist ransparent and nondi scr iminatory, and th at appl ica tion s f iledthereunder are processedexpeditiou sly ; and

(b) informationrequired under such proceduresis limitedto tha t neces sary t o demonstrate that theapplic anthasthefi nancia lsol vency tobeginprovidi ng serv ice s or to assessconformityof th e appli cant' s terminalor otherequipment w iththe applicabl e standards ortech nical reg ulations ofthePart y. 2. Neither Partymay require a personprovidi ng enhancedorvalue - addedservices to :
2. (a) provide thoseser vices toth e publ icgenerally;
3. (b) cost - justify its rates;
4. (c) file a tariff;
5. (d) interconnect it s networkswithany part icular cust omer ornetwork; or
6. (e) conformwithany particular standard ortechnical regulation forinterconnection ther th an f orin terc onnection toa publi c tel ecommunicati onstransport network. 3. Notwithstand ingpar agraph2( c), a Party may require thefil ingofa tarif fby:

- (a) such a provid er to r emedy a practice of t hatprovider thatthePartyhas fou nd in a particula rcasetobe anti - com pet itiv e underit s l aw; or
- (b) a monopoly t o which Article 12.6applies.

Stand ards - Related Measures

str. 781. Furtherto theTBT Agreement,each Par ty shall ensurethatits standards - related m easures rela ting totheattachm entof ter minalorotherequipmenttothepubl ictelecommunications transport networks,inc ludingtho se measures relating t o the use of test ing and m eas uringequipment for conf ormityassessment pro cedure s,ar e adoptedorm aintained onlytot he extent necessary t o:
2. (a) prevent technical dama ge topubl ictele communications transport networks;
3. (b) preventtechni cal interf er ence w ith, or degradat ion of,publictelecom munications tr ansport services;
4. (c) prevent electr omagneti c inter ference, and ensur e compatibi li ty, wit h oth erusesofthe electr omagneticspectr um;
5. (d) prevent billing equipmentmalf unction ;
6. (e) ensureusers' safety and accessto publictel ecommun ications tr ansport networksor servi ces;
7. (f) ensuretheelectri calsafety ofcommunicationequipment; or
8. (g) facilitate theeff ici entutiliz at ionofradio spectrumr esources. 2. A Partyma y requir e,befo rean unauthorized t er m inal or otherequipmentmay be ma r keted, an approv alfo rtheat tach ment tothepublic telecommunication s transport net work,prov ide d that the cr iteria forthat approval arecons isten twithparagraph 1. 3. Each Party shall ensur e t hatt he networktermination points forit s publi c te lecommunications tr ansport networksar e define d on a r easonable and transparent basis. 4. NeitherPartymay require separat e aut horizati on forequipment thatisconnectedon the cust omer'ssideof aut hori zed equipment thatser ves as a prote ct i ve devicefu lfilling thecrit er i a of paragraph 1. 5. Further toth e TBT Ag reement, eachParty shall:
13. (a) ensure that its confor mit y assess m ent proc edures are tr ansparentand nondi scr iminatory and that appl ications fil ed thereunder ar e pr ocessed expeditiously;
14. (b) permitany techn icall y qualified entity to perform the test ing requi red under the Party's conformityassess ment procedu r es for terminal or otherequipment to be attache d to thepublicte lecommunicati ons transport network,subject to theParty' s righ tt o revie w t he accu racyand completeness ofthetest results; and
15. (c) ensurethat any measureth atit adoptsormaint ainsrequiring persons t o be autho riz ed to act as agentsforsupplier s of tel ecommunicat ionsequipment beforethe Party's relevant conformity assess ment bodiesisnon- discriminatory . 6. No later thanone year aft erth e dat e of entryintoforceof this Agreement,each Partyshall adopt, as partofits confor mityassessment procedures, provisions nece ssary toacceptthetest results fr om laboratories or testing f acili ti es in the terri toryof the otherPartyfo r tes ts perfo rmed in accordancewith theacc eptingPar ty 'sstandards - related measuresand procedures. For thedetailed

str. 80proc eduresand methods f or mutualreco gnition of t esting laboratories and mutualaccep t ance of test reports, follows thepr ocedur esand m ethodsasprescri bed inthe'Asi a- Pacific Economic Cooperation (APEC ) Mutual Recogni ti on Arrangement for Conformity Assessment of Telecommunications Equipment(adoptedon M ay 8,1998)'shall be takenint o consideration by theTelecommun ication Committee. 7. The Parties hereby establ isha Com mitteeon Telecommunications Stand ards,comprising representatives ofeachParty . 8. The Commi tteeon Tel ecommunic ation s Standardsshallperform the functions setout in Ann ex 12.5.8.

M onopolies

str. 801. Wh erea Partymaint ainsor designates a monopoly to providepublictele communications tr ansport networksor ser vi ces,and themonopoly, direct lyor throughan affili ate, compe tesin the prov isi on of enhanced or val ue- added services or othert el ecom munications - related servi ces or telecommunications - related goods, t he Party shal l ensure thatt he monopoly does not use its mon opolyposition toengage inanti - competitive conductinthosemarkets, either directly orth rough its deali ngswithits affi li ate s,insuc h a manner astoaffec tadversely a personoftheot herPar ty. Such conduct ma y includecr oss - subsidi zation, predatory conduct and the discriminatory provision of acces s topublic telecommunicat ionst ransport networksorservices. 2. To preventsuch anti - competitive conduct , each Partysha lladoptor mainta in,as state d in paragraph 1,effectiv e m easures, suchas:
3. (a) accounting requ irem ents;
4. (b) requirements forstr uctur alseparation;
5. (c) rulesto ensurethatthem onopoly accordsitscompeti torsaccesst o and use of its public tel ecomm unications tr ansportnetworksorservices on termsand condi tio ns no less favorable thanth oseit acco rdstoitsel forit s affil iates; and
6. (d) rules to ensur e th e timely disclosureof technicalchanges to public telecommunicati onstra nspor tnetworksand their interfaces.

Tran sparency

str. 80Furth er to Article 17.3,each Part y shallmake publicly available itsm easuresrelating to acces s to and use of publict elecommunications transpor tnetworksor services, includ ingme asures rela ting to:

- (a) tariffs and other ter ms and conditions ofservic e;
- (b) specifications oftechnical interfaces withthenetworksorservi ces;
- (c) information on bodie s r es ponsible for the pr eparat ion and adoptionof stand ards relat ed measuresaffecting suchaccessand use;

- (d) conditions apply in g to attachmentof terminal or otherequipmentt o thenet w orks; and
- (e) notification, per mit ,registrat ion, orlicensing orconcession requi rements.

Rel ation To OtherChapte rs

str. 81In the event of any inconsistency between thi s Chapter and anotherChapterin th is Agreement,this Chaptershall pr evail t o theextent oft he i nconsist ency.

Relation To Intern atio nalOrgani zatio nsA nd A greements

str. 81The Parties recognize th e importance of i nternational standards forglobal compatibilit y and i nte roperability oftelecommuni cati on networksorservices and undertake topromotethosestandards throught he work of r elev ant inter national bodies, including the I nter nat iona l Telecomm unication Union and theInternat ional Organiz ation forSt andardization .

Technica lCooperation And OtherConsultations

str. 811. To encourag e the development of interoperable telec om municat i ons transport se rvices inf rastructure ,theParti esshall cooperate intheexchangeoftechnical informati on,t he developmentof government - to - government tra iningprograms and otherrel ated acti vitie s. In implementingthis obligat ion, thePartieshall giv e speci alemphasistoexist ingexchangeprograms. 2. The Partieshall consult witha view todetermining thefeasi bi li tyoffurth erl iberalizing trade in allt elecommunications ser vi ces, incl uding publict el ecom municationst ran spor t net w orks and serv ices .

For Chil e:

str. 811. The competentin st i tu tion respon sibl e f ortheadopt i on ofconformity ass es sment procedures is theUndersecretary of Telecomm unicati ons,Ministr y of Transport and Telecommunications, or its successor. 2. The exis ting m easures areth e f ollowing:
3. (a) Law 18.168, Offic ial Gazette, October2,1982,GeneralLaw ofTelecommunications ("Ley18.168, Diario Oficial, octubre 2,1982,Ley General de Tele comunicacio nes')
4. (b) Supreme Decree220 oftheMinist ryofTransport and Tel ecommunications, Official Gazette, January8,1981

str. 82- (c) Regulation on t he Homol ogation ofTelephoneEquipment(Decreto 220 de M in i steri o de Transp ortes y Tele comunicacion es, Diario Oficial, enero8,1981,"Reglamentode Homologación de Apa ratos Tele fón icos")

For Korea:

str. 821. The competentin st i tu tion respon sibl e f ortheadopt i on ofconformity ass essmentprocedures is theMinistry ofInform ation and Communicat i on,orits successor . 2. The exis ting m easures areth e f ollowing:
3. (a) AreasofType Approval
- Telecommunicati onsBasicAct (ActN o.5454,D ec.13,1997)
5. -EnforcementDecre e of TelecommunicationsBasic A ct (President ial D ecreeNo. 15282,Feb.22,1997)
6. -Enforcement Regulations of Tele com municat ions Basi c Act (Ordinan ce oftheMi nistry ofInf ormat ionand C ommunicationNo. 64, Feb.26,1999):defin itions of thetypeappr ovalitems, and applica tion and process procedur es
7. -Regulationson t he TechnicalStandards of Telecommunicat ions Facili ties (Ordinan ce of the Mi nist ry of Information and Communi cation No. 58,Dec.1,1998)
8. -Terminal - insta llmentTechnicalRegulations (Minist ry of Information and Communication Announcement N o. 1998- 18, Feb. 21, 1998) : def initi ons of the tech nical r egulationsof t er minal - inst allment equipment
9. (b) AreasofType Verificat ionand Type Registration ofWireless Equipment
- Radi o W avesAct (ActNo. 5637,Jan. 18,1999)
11. -Enforcement Decree of the R adio Waves Act (Pr esident ialDecree N o.16158 ,M arch3,1999)
12. -EnforcementRegulations of t he Radio Waves A ct( Ordinanceof the M inistry ofInformation and C ommunicatio n N o.53,July31,1998)
13. -Confirmation Regul ati ons on Type Veri fi cation, Type Registration and Technic al StandardCertif ication forWirelessFacil i t y (Ordinanceof t he Ministryof Infor mation and Comm unication No. 52, July 16, 1998):definitions of th e object of veri fication or r egistration, and the applica tio n and process pro cedure
14. -Regulations on Wi rel ess Faciliti es (Ordinanceof the Ministryof I nformation and Comm unicati on No. 45,Jan.31,1998):definiti ons of t he technical regulatio ns
15. (c) AreasofElectr omagneticComp atibility Registrati on
- Radi o W avesAct (ActNo. 5637,Jan.18, 1999)
17. -Regulations on Electromagnetic Compatibi li tyRegis tration (Ac tNo. 39,May 8,1997):definitio nsoftheregist ration items, application and proces s procedures, and relevante chnical regulat i ons

Forpurposes ofthis Ch apter:

busine ssperson means a citiz en ofa Par tywho isengagedintrade ingoods,theprovision of serv ices ortheconductofinvestment act ivities; and temporary entry means entryi ntot he te rrit oryofa Partyby a business personof theother Part y wit houttheinten ttoestabl is h per manent residence.

GeneralPrinciples

str. 831. Further toArtic le1.2, t hisChapterrefl ectsthepreferent i altrading re lationsh ipbetween the Parties, the des i rabilit y of faci litati ng temporaryentryon a reciprocal basisand of establishing tr ansparent criteria and pro cedures f ortemporaryentry, and theneed toensureborde rsecurity and to protecthedomestic labour f orceand permanentemployment inthei rre spective territo rie s.
2. The Parties r econfir m thei r voluntary com mitmentsestablished intheAPEC Business Travel Card 'Operating Fram ework'.This r ecognition shall be understood to be under theA PEC general principle s.

Gen era lObligations

str. 831. Each Partyshall applyi tsmeasuresrelating totheprovisions of this Chapterinaccord ance withArticle 13.2and,inparti cular ,shall applyexpeditiously thosem easur es so as toavoidunduly impairingor delayingtr ade in goods or services or conduct of in vestmentactivities under this Agreement.

ANNEX 12.5.8

Committee On Telec om mu ni cations Sta ndards

str. 831. The Committee on Tel ecommunicationsStandar ds,established under Article 12.5.7, shal l compris e repres entativ esofeachPart y. 2. The Committee shall, with in sixmonths of thedat e of ent r y intoforceof this Agreem ent, developa work progr am, includi ng a timeta ble, f ormaking com patible tothegre ates textent possible, thestandards - related measuresofthePart iesforaut horized equipmentasdefined inthis C hapter. 3. The Commit tee m ay address oth er appropriatestandards - relatedmatters regarding telecommunications equip ment orse rv ices and suchother m atters asi tconsiders appropriate. 4. The Committee shal ltakeintoaccountreleva ntwork carried outby thePart i esinotherfora, and that ofnon- gover nmentalst andard izing bodies.

CHAPTE R 13

str. 84:TEMP ORARY ENTRY FOR BUSINE SS PER SO N S

Defin itions

str. 842. The Partiesshallendeavour to develop and adopt com mon criter ia,defi nit ions and i nte rp ret ations forthei mplem ent ation ofthis Chapter.

GrantOf Temporary Entry

str. 841. In accordanc e with t hisChapterand subject to the provisi ons of Anne x 13.4 and Annex 13.4. 1, each Partyshall granttempor ary entryto business personswho areoth erwis e qualified for entry underapplicabl e measuresre lat i ng topublic health and safet y and nat ional secur i ty . 2. A Partymay re f use toissue an i m migration document authorizing employment toa business perso n w herethetempor aryentry oft hatper son mightaffect adversely:
3. (a) thesettlement ofany l abourdispute that isinprogress atthepla ce or in ten ded pl ace ofemployment;or
4. (b) th e employment ofany pers on who isinvolved insuchdispute. 3. Wh en a Part y refuses pursuant toparagraph 2 t o issue an immigration document authorizing employmen t, it shall:
6. (a) informinwriting thebusiness personofthereasons fortherefusal; and
7. (b) promptlynot if y t he othe rParty inwriting oft he reasons f ortherefusal . 4. Each Partyshall lim itany feesforprocessing applications fort em poraryentryof business perso nstoth e approx imatecost ofser vices r endered.

Provision O fInformati on

str. 841. Furth ertoArt icl e 17.3, eachPar tyshall:

(a) provideto theotherPartysuch materials as willenablethelatter Part y tobecom e acquainted w ith its own measuresrelatin g tothis Chapter; and

(b) no later thansixm onthsafter thedateofent ryint o forceofthis Agreement,prepare, publish and make avai lab leinit sown t erritory, and intheterritory oftheother Part y, explanatory material in a consolida ted docum ent r egardi ng the requiremen ts fo r temporaryentryunderthis C hapte rinsucha manner aswillenablebusiness persons oftheot herPartytobecome acquai ntedw i ththem. 2.

str. 85Each Partyshall coll ect and maintain, and m ake available totheotherPartyinaccordance withits domesticlaw,dataregar dingthegranting of t emporary entryunderthis Chapte r tobusiness perso ns of theotherPartywho have been issued imm igration documentati on,in cluding dataspecific toeachoccupation, profession oracti vity.

Wor ki ng Group

str. 85The Parties herebyest ablish a Tempor aryEntryWorking Group,comprising represen t atives of each Party, including immigration officials, toconsider theimplementat ionand adm inistration of this Chapterand any m easures ofmutualinter est.

D ispute Set tlement

str. 851. A Partymay notiniti ateprocee dingsunderArticle 19.6regar dinga refusal togrant tempor ar y entry underthis Chapte rora part icular casear ising underArticl e 13.2unless:
2. (a) thematter invol vesa pattern ofpractice; and
3. (b) thebusinespersonhasexhausted theavai lable admini st r ative remediesregarding the particul armatter. 2. The remediesrefer re d to in subpar agr aph 1(b)shal l be deem ed to be exhaustedi f a fina l determination inthematterhasnotbeen i ssuedby thecompetentaut hority with insixmonths of the institut ionofan adm inistrat iveproceeding, and thefai lure toissue a determination isnotattribu tab le todela y causedby th e business pers on.

Rel ation To OtherChapte rs

str. 85Exceptforthis Chapter ,C hapt er s 1,2,18,19 and 21 and A rt icles 17. 2,17.3, 17.4and 17.6, no provisio n of thisAgreement shall impose any obligation on a Partyregarding itsi m migration measures .

TemporaryEntryForBusinessPersons

Section I-Business Visito rs

str. 851. Each Partyshal lgranttempor ary entrytoa business personseekingtoengage i n a busi ness act ivityset out in Appendix 13.4.I.1, wit hout r equiringthatperson t o obtainan employment authoriza tion,provide d thatthe businessperson otherwi se complies with existing i m migration measuresapplicable totempora ryent ry ,on pres ent at ionof:
2. (a) proofofcit izenshi p ofa Party ;
3. (b) documentationdem onst rati ng thatthe busines per son willbe so engaged and describi ng thepurpo seofentry ;and
4. (c) evidencedemonstr ati ng th att he proposedbusines activi t y isinternation alinscop e and th e business pers on isnotseeki ng toenter thelocal labour market. 2.

str. 86Each Party shall pr ovid e th ata business personm ay sati sfytherequir ementsofsubparagraph 1(c)by demonstrating th at:

(a) theprimarysour ce of remuner ation fort he proposedbusiness activi tyisoutside the t err it oryoftheParty grant ingtemporar y entr y;and (b) thebusiness person's pr inc ipalplaceof business and theactualplaceof accru alof profi ts, atleas t ,predomi nantl y,remai n outs idesucha terri tory. 3. Each Partyshal lgranttempor ary entrytoa business personseek ingtoengage i n a busi ness activity oth er than t hose setout i n Appendix 13.4.I.1, withoutrequiring thatperso n to obtainan employmen t authorizat ion,on a basisno lessfavour able than thatpr ovided under the existing prov isi ons of themeasuressetoutinAppendix 13.4.I.3, providedthat thebusine sspersonotherwise complieswit h existing i mmi gration m easur esapplicabl e totemporaryentry. 4. Neither Partymay :

(a) as a condition fortemporaryentryunder paragraph1 or 3, r equirepr iorappr oval procedures, petition s,labourcertification t est s or otherprocedur es of similar ef f ect; or

(b) impose or m ai ntainany numericalrestricti on rel atingto tempor ary entryunder parag ra ph 1 or3. 5. Notwithstand ingparag raph4,a Part y may require a business personsee kingtemporaryentry underthis Section toobtain a vi sa or its equivalent i n accordanc e withits domesticimmigrati on law prior toentry. Beforei mposing t he vi sarequirement, thePartyshall consult withtheother Partywith a vie w toavoidingtheimposition ofth e requ irem ent. With respect toan existing visarequirement, a Part y shall consult, upon re quest, withtheother Par t y witha view toits removal.

Secti on II-Traders A nd Inv estor s

str. 861. Each Partyshall gr antt em poraryentr y and provideconfirming documentati on toa business perso n seekingto:
2. (a) carry on substantia lt rad e ingoods orservices principally betweenthete rritory ofth e Partyofwhich thebusiness per son isa citizen and theterri t oryoftheother Partyinto which entr y issought, or

(b) establish, develop,administer or provideadviceor key technic al serv icest o the oper ationof an investment to w hich the busi ness personor the busi ness pers on' s enterprise hascommi tted, orisintheproc essofcomm itting, a substantial amount of capit al, ina capa cit y that issuper visory or execut ive, or i nvolvesessential skills, providedthat thebusiness perso n oth erwis e compli eswit h exist ingimmigration m easures appl i cable totemporary entry. 2. Neither Partymay :
2. (a) asa condition f ortempor aryentry underpar agraph1,require l abourcerti ficatio n tes ts orother proc edures ofsimi lar eff ect; or

(b) impose or m ai ntainany numericalrestricti on rel atingto tempor ary entryunder parag ra ph 1. 3. Notwithstand ingparag raph2,a Partymay require a business personsee kingtemporaryentry underthis Section toobtain a vi sa or its equivalent i n accordance withits domesticimmigration law prior toentry. Beforei mposing t he vi sarequirement, thePartyshall consult withtheother Partywith

a vie w toavoidingtheimposi tion ofth e re quirem ent. With respect toan existing visarequirement, a Part y shall consult, upon re quest, withtheother Par t y witha view toits removal.

Section III -Intra - Company Transfer ees

str. 871. Each Partyshall gr antt em poraryentr y and provideconfirming documentat iontoa business perso n emp loyedby an ent erpri se who seeksto renderservices t o thatent er priseof a Par ty or a subsidiary or affiliate thereof, i n a capac i ty thatismanagerial, executive or inv olv es specia lised knowledge,provided th atthebusiness per son otherwi secomplieswithexist ingimmigration me asures applicable to tempor ary ent ry . A Partymay require the businesspersonto have been employed continuously by theente rp ris e fo r one yearwithinthethree - year periodimmediately preceding the dateoftheapplication foradmission. 2. Neither Partymay :
3. (a) asa condition f ortempor aryentry underpar agraph1,require l abourcerti ficatio n tes ts orother proc edures ofsimi lar eff ect; or
4. (b) impose or m ai ntainany numericalrestricti on rel atingto tempor ary entryunder parag ra ph 1. 3. Notwithstand ingparag raph2,a Part y may require a business personsee kingtemporaryentry underthis Section toobtain a vi sa or its equivalent i n accordanc e withits domesticimmigrati on law prior toentr y.Beforeimposi ng visareq uir ement,thePartyshall consult withtheotherPartywitha view toavoi dingtheimpositi on of t he requirement. With respect toan existing visarequir ement,a Part y shall consult, upon re quest, withtheother Par t y witha view toits removal.

ANNEX 13.4.1

In t he caseofCh ile:

str. 871. Busines s personswho ente r Chileunderany of thecat egories setoutinA nnex 13.4shal lbe deemed tobe engagedinacti viti eswhich areinthecountry's interest. 2. Busines s persons who ent erC hile underany ofthecat egories setoutinAnn ex 13.4areissued witha t emporaryresident vi safora period up toone year. Such a te m porary visa ma y be extendedfor subsequentperiods, prov id ed th e conditions on which itisbasedr emain ineffect, withoutrequiring that persontoapplyf orpermanentresi dence. 3. Busines s persons who enter C hile m ay also obtain an ident ity cardforforeigners. 4. Busines s personswho enterChileunder any of thecategoriesetout in Ann ex 13.4ma y fr eelyenter and leav e Chilewithou tr e- ent rypermissi on duringth e validity oftheir visas on thebasis ofreciprocity.

In t he caseofKorea:

str. 871. Busines s visit orswho enter Ko reaunderSecti on IofAnnex 13.4areis suedwitha shortterm busin essvisa(C- 2) f or a periodof up to sixmonths.A change of visastatu s to thatof an intra -compa ny transferee visa(D- 7),inv estmentvisa(D- 8) or trademanagement visa(D- 9),may be permitted, iftheactiv ities of thebusin essvisit orssatisfy thecondi tions underSections IIand I IIof Ann ex 13.4.

str. 882. Investors and tr aderswho enterKo reaunder SectionIIof Annex 13.4areiss ued with an i nvestmen tvisa(D- 8) or a trad e and management visa(D- 9),respecti vely, fora periodof up t o one year .These visas may be extendedforsubsequent per iodsprovided t he conditio ns on which th ey are based remainineffect. 3. Intr a- compan y tran sf er ee s who ent erKorea underSecti on I IIof Annex 13.4areissuedwith an intra - company transf ere e vi sa ( D - 7) fora per iodof up toone year.Thisvisamay be extendedfor subsequent periods prov idedt he conditions on w hichit isbasedremainineffect. 4. Busines s personswho enterK oreaunder any of t he cat egories setout in Annex 13.4ma y fr eelyent erand leaveKorea without re - entry permi ssion duringtheval idity oftheir vis a on th e basis ofthereciprocity. 5. Busines s per sons who intendto stay over 90 days in Korea shallregister the aliens reg istrati on atthecompetenti mmig ration of fice.

APPENDIX 13.4.I.1

Busine ssVisitors

str. 881. For purposesof th isAppendix, ' territory of the ot her Party ' means theterritory of the Part y other tha n thete rritory ofthePartyinto which temporaryentry issought . 2. Busines s acti viti esreferr ed toi n Secti on I.1 ofAnnex 13.4ar e:

Research and Design

str. 88- Technical, scientific and statist ical researchers conducti ng research foran enter pris e lo cat ed inthet erritory oftheoth erParty.

Growth, Manufacture and Production

str. 88- Purchasing and producti on management personnel conducting commercial tr ansa ctions foran enterpri selocated i n theterritory oftheother Party.

Marketing

str. 88- Market resear chersand analysts conduct ing analysis or re searchforan enterp ris e lo cat ed inthet erritory oftheoth erParty. - Tradefair and promotiona lpersonne lat tending a trade convent ion. - Salesrepresen ta tiv es and agentst akingordersor negotiat i ng cont racts forgoods or servi ces foran enter pri se located i n t he terr itory oft he other Partybutnotdeliveri ng goodsorproviding servic es . - Buyerspurchasing foran ent erpr ise located int he terri toryoftheot herParty. Sale s

Distr ibution

str. 88- Customsbrokersprov iding consulting services regarding thefaci li tation oftheimport orexport ofgoods.

After- Sale

str. 89sService

- Ins tallers ,rep airand maintenancepersonnel, and superv isors, possessing specia lise d knowledge ess ential to a seller 's contra ctualobligation, performingservice s or tr aining workerstoper fo rm serv ices, pursuant toa w arr antyorother servi ce contract in cidenta ltothesaleofcomm er cial or i ndustrial equi pment or machinery, inc lu di ng computer software, purchasedf rom an enterp r iselocated outside theterrit ory of the Partyintow hichtempor aryent ryi s sought, duringthelife ofthewarranty orservice agre ement.

General Service

str. 89- Consultants engaging in a business act ivity at the cross - borderservi ces prov ision level . - M anagementand supe rv isor y personnel engagingi n a com mercial transaction foran enterprise loc atedintheterritor y oftheot herParty. - Financial serv icespersonnel (i nsurers, bankersor investment brokers) engagingin commercialtransactions fo ran ent erprise located i n theterri toryoftheother Party . - Publicrelations and adverti singpersonnelcons ul tingwith businessasso ciate s,or atten dingorparticipa tin g inconventions. - Touris m per sonnel(t ourand travel agents, tourguidesortouroperat or s)attending or participa ting inconvention s orconduct inga tourt hathasbegun inthet erritory oft he ot herParty . - Trans lators orinterp reter s per formingservices asemployeesofan enterprise located intheterritory oftheother Party .

APPENDIX 13.4.I.3

Existing Im migrationMeasures

str. 891. Inth e caseofC hil e,Title I, paragr aph 6 ofD ecreeLaw 1094,O ffici alGazette, July19,1975, Immigration Law ('Decreto Ley 1094,DiarioOfic i al, julio 19,1975,Ley de Extran j er ía '),and Title II I of ImmigrationR egula tion('DecretoSupremo 597 del Minis terio del Inte rio r,DiarioOficia l noviembre24,1984,Reglamento de Extranjería'). 2. InthecaseofKorea,Immigrati on Law A rticle 7 and Article 8 (amended February5,1999) , ImmigrationLaw Enforce ment OrdinanceArt icl e 7,A rticle 11 and Art icle 12 (amended November 27,1999),Immigratio n Law EnforcementRegulations Article 8, Art icle9, Article 10, Artic le13, Article 18, A rticle 71 and Article 76 ( am ended December 2, 1999) , Visa IssuanceProcedurefor Short - Term Bu siness ( C - 2), Short - Term Visitors (C- 3).

Defin itions

str. 90Forth e purposeofthis Chapter:

compe tition laws in cl udes:

(a) for Chile,Decree Law N° 211 of 1973 and Law N ° 19.610 of 1999 and their implementing regulatio nsoram endm ents;

(b) forKorea,theM onopolyR egulation and FairTr ade Act (Law no.3320,1980)and its implementing regulatio nsand amendments;and

(c) any changesthat theleg islat ion s insubparagraphs (a)and (b)may undergoafte rth e conclusi on ofthis Ag re em ent ;

compe tition authority means:

(a) forChile, the'Fi sc alía NacionalEconómica';and

(b) forKorea,theFairTradeCommis sion; and enforcementactivity m eansany applica tionof competition laws by w ay of in vestigation or proc eedingconductedby thecompetiti on author i tyof a Party, which may resu lt intheimposition of penal ties orremedies.

Objectiv es

str. 901. The Parties undertake t o applythei rrespect ivecompetition lawsina manner consis tent with this Chapterso astoavoidthat t he benef it soft he liberalization process ingoods and serv ices may be diminishedor cance ll ed out by ant i - compe titive busi nessconduct. To t hisend,thePart iesagreeto cooperate and coordin atebetweentheir competition authorities undertheprovisions ofth isChapte r . 2. With a view topr event ingdi storti onsorrest ri ctions on competit ionwhich may affe ctt ra de in goods or services between t hem , the Parties shallgive parti cularattentio n to anti - comp etitive agr eements,concertedpra ct ices and abusi ve behaviorr esulting fr om singleor j oint dominant positions. 3. The Parties agreetocooperate and coordinate betweenthemselves fortheimple mentationof compe titio n laws.This coopera tionin cludesnoti fication, consult at ion,exchan ge of nonconfidential infor mati on and technical assistance. The Partie s acknowledge the importanceof emb rac i ng principle s on competition thatwould be acceptedby bothParties inmult i lat eralfora, including the WTO.

No tif icat ions

str. 901. Each competition authority shallnoti fy thecompetition authori ty of the otherPartyof an enforcemen tactivity i fit:
2. (a) isliable tosubstan tia ll y af fect theother Party's i mportant interest s;
3. (b) relates torestrictions on com petition w hichareliable tohave a direct and subst antial ef fe ctinth e territory oft he ot herPart y;or
4. (c) concernsanti - competit iveactstakingplaceprincipal ly in t he territory of theother Party. 2. Providedth at itisnot contra ry to the Parties' competition laws and does not affec t any inv estigat ion b eingcarr iedout,notification shal l be gi ven at an earlystageof theprocedu re.The opinions received may be tak en in to consi deration by t he othercompetition authority when taking decisions . 3. The notifications gi ven underparagraph 1 shouldbe detailed enough topermitan evaluation int he l ight oftheinterest softh e other Party. 4. The Parties undertaket o exer ttheir bestefforts t o ensuretha t notifications aremade int he circ umstancessetoutabove,t akingint o accounttheadministrative r sour cesavailable tothem.

Coordi natio n Of Enfor cementAc tiv ities

str. 91The competition authority ofa Par tymay notify theother Party's competit ionauthority ofit s inte ntiontocoordin ateenfor cem entactivit eswithrespe cttoa specific case. Thiscoord i nati on shall notprevent thePartie sfr om tak ingauto nomous deci sions.

Consultations When The Import antInt erests Of A PartyAre Adversely A ff ecte d InThe Territo ryOf The OtherPar ty

str. 911. Each Partyshall , in accordan ce with it s l aws, take intocons ideratio n, as necessar y, the important in teres tsof th e ot her Part y inthecourseof its enf or cement act i vitie s.Ifthecompetition authority ofa Partyconsid er s that an investi gation orproceeding beingconducte d by thecompetition authority oftheother Partymay adversely affect sucha Party' simportant i nteres ts, it m ay transm it its views on the matterto,or requestconsult ationw ith, the othercompetiti on author ity . Without prejudice to the continuat ion of any actionunder itscompetiti on laws and to itsfull freedom of ultimatedeci sion, the com pet iti on authority so addressedshould giv e fulland sympathetic consideration totheviewsexpressed by therequest ingcompeti t ionautho rity. 2. The competi tionauthor ityof a Partythatconsiders thatits interests arebeingsubsta nt ia l l y and adversely affected by anti - competitive practices ofwhateverorigin t hatareorhave been engaged in by one or more enterprises l ocated in the otherPart y may requestconsulta tion s with the compe titio n authority of th atParty .Such consultations arewithou tprejudice tothefull freedom of ultimate decision of th e com pet itio n author ityconcerned. A competi tionaut hority so consulted may takewhatevercorrect ivemeasuresunderits competi ti on laws,which it deems appropriate, consisten t withits own domesticlaw,and without prejudice toi tsfull enfor cementdiscret io n.

Exchange Of Informati on And Confidentiality

str. 92With a view t o facilitating theeffect iveappl icati on oftheir respective competiti on laws,the compe titio n authorities may exchang e non- confidential information. 2. For thepurp ose of i mprovingtransparency, and withoutpr ejudic e totherules and sta ndards of confidentiality applic able in each Party, the Part ieshereby undert ake to exchange inform ation reg ardingsanctions and re medies appliedin thecasesthat, according to thecompetition auth ority conce rned ,aresignificant lyaffec ting important interests oftheother Partyand toprovide th e grounds on which thos e actions were tak en,when requested by thecompetit ionauthority oftheot herPar t y. 3. Allexchang e of in for mationshall be subject tothestandar ds of confid entiality applic ablei n each Party.Confid ential inf or mation whose di ssemination is expressly prohibited or which, if diss eminated, could adversely affect th e int erest of the Parties, shal l not be providedwithoutthe expr essconsentofthesourceofthein formati on. 4. Each competit ionauthority shall maintain theconfidentiality ofany information prov id ed toit inconfi denceby theot hercompetition authori ty, and shall notdi sclose suchinfo rmationtoany entity that isnotauthoris ed by thecompetiti on author ity that suppl iedtheinformation. 5. Notwithstand ing t he above provisions of thisA rt i cle,where the laws of the Parties so prov ides, confidential i nf ormationmay be provi ded tot heir respective courts ofj ust ice, prov id ed that confidentiality ismaint ainedby thecourts.

Techni calAssistance

str. 92The Parti es may prov ideeach otherwithtechnical assistance inordertotakeadvantageof thei r respect ive exper ienc es and to strengthen t he implementation of t heircompetitio n laws and policies.

Public Enterp rises An d Enterpris esEntrust ed With Special O rExclusive Right s, I ncluding D esignated Mon opoli es

str. 921. Nothinginthis Chapterpre ventst he Parties fro m designating ormaintaining public orprivate mon opolies according toth ei rrespecti ve laws. 2. With regardtopubl icent erpri sesand ent erprises towhich special or exclusive rights have been granted, includi ng designated monopolies, theComm ission shall ensuretha t ,following thedat e of entryintoforceof this Ag reement, such enterpris e shall be subject to ther ul es of competition, inso faras theapplication of such ru lesdoes not obst ructtheper formance,inlaw or in fact ,of the particular tasks as sig ned tothem.

D ispute Set tlement

str. 93Neit herPartyma y have recourse t o dispute settlement procedures underChapter19 forany matter arisin g underthis Chapter .

str. 93Articl e 15.1

Scope And Coverage

str. 931. ThisChapterapplies t o measuresadoptedormaintained by a Par tyrelating topr ocur em entby an ent ity, by any cont ractu alm eans, including purchase and ren t alorlease, withorw ith outan option tobuy,subject tothecondi ti ons spec ified inAnnexes 15.1and 15.2.For purpo sesof this Chapter, public w ork s concession and build - operate - transf ercontracts shall be consi deredasprocu rement. 2. ThisChapterdoesno tapplyto:
3. (a) non- contractual agr eementsor any form of assistance providedby a Partyor a stat e enterprise, including gra nts, loans, fi scal incen tive s, subsidies,guaran tees, coopera tive agre ements, gover nment pr ovision ofgoods and services toperson s orto stat e, regionalor localgovernment s, and purchasesfor the di r ect purpose of providing foreign assist ance;
4. (b) purchasesfun ded by in ter national grants, loan s or other assi stance,wh ere the provision of such assistance issubject toconditions inconsistent withtheprovisions ofthi s C hapt er;
5. (c) hiringof government em ploy ees and hiring of ent it ies'otherlong - term staff and personnel, and related employm entmea sures; and
6. (d) financial serv ices. 3. Neither Party m ay pr epar e,designorot herwisest ructu reany proc ur ement contrac tinorderto avoidtheobligations underthis Chapter .

Nati onalTreatmentAnd Non - Discr iminatio n

str. 941. EachPartyshall ensureth att he procurement ofits enti ties coveredby this C hapter takes place in a transparent, reas onable and non- discriminatory manner, trea t ing any supplie r of either Party equal lyand ensuring theprincip leofopen and eff ective com petition. 2. With re spect to any l aws, regulation s, pr oceduresand practices reg ardinggovernment proc urementcoveredby th isChapter,eachPar tyshall grantthegoods,serv icesand supplie rsofthe otherPartya treatment no l essfavour ablethanthatacco rdedby ittodomesticgoods,services and suppl iers. 3. With re spect to any l aws, regulation s, pr oceduresand practices reg ardinggovernment proc urementcoveredby this C hapter ,eac h Par tyshall ensure:
4. (a) thatitsentiti es do not treat a local ly - established suppli er lessfavoura bly thanany ot herlo cally - established supplier on t he basis of thedegr ee of fore ignaffiliation to, orow nership by,a per sonofth e ot herParty; and
5. (b) that its entities do notdiscri minateagainst a local ly - established supplier on thebasis th atthegoods or services offe red by thatsupplier fora particular procurementare goodsorservi cesoftheother Par ty. 4. ThisArticle shall notapplyt o measuresconcerning customsduties or otherchargesof any kin d imposed on,or inconnecti on w it h importation, themethod oflevying suc h duties and charg es,

otherimport regulations, inc l uding r estric tionsand formalit ies, nor to measures affecting tra de in serv ices other thanmeasuresspe cif ically governing procurement coveredby this Chapter.

Prohibi tion Of Offset s

str. 95rtyshall ensurethat its entiti esdo not, inthequalif icati on and select ionofsuppl ie rs , goods or services, inth e evaluation of bidsor in theaward of contract s,consider, se ek or impose offs ets.

Tran sparency

str. 951. Each Partyshall promptlypublish any law,regul ati on,judicial decis ion and admini strative rulingof general applic at ion and procedure,in cluding standardcont rac t clauses,regarding proc urementcoveredby thi s Chapter, intheappropri atepublications, including officially designated electronic media. 2. Each Partyshall promptlypublish int he sam e manner asinparagraph 1 any m odification to such measurestherein.

TenderingProc edures

str. 951. Entities shall award th eirpubliccontract s by open tendering procedures accor di ng t o their resp ective domestic pr ocedur es, incompliance withthi sChapter and ina non- discrim inatory m anner. 2. Providedthat thet endering pro cedur e isnotused toavoi d competi t ionortoprotect domestic suppl iers, enti tiesshallbe allowed to aw ard contr actsby means otherthan an open tendering proc edureinthefollow ingcircumstances and subject tothefol lowingconditions, where applicable:
3. (a) in theabsenceof tender s tha t conform to the essential re quirementsin th e t ender documentation providedina pr io r tende ri ng procedure, including any conditions for participa tion,prov ided th at the r equirementsof the init ialprocu rement are not substantially modifiedinthecont ract asawarded;
4. (b) wh ere,forworks of art, or forr eason s connectedwith theprot ection of exclu sive righ ts, such as paten ts, copyr ig htsor proprietary inf ormationor i n theabse nce of competit ion fortech nic alreasons, thegoods or services can be supplied only by a particula rsupplier and no reasonable alternative orsubstitute exist s;
5. (c) for additional deliv er ies by the original suppl i er that are intendedei t her as replacementparts,exte nsions,or cont inuing servicesfor existingequipment, sof tware,services or insta lla tions, w here a change of supplier would compe l the entit y to proc ure goods or serv icesnot meetingr equirements of i nterchange ability withexisting equipment ,sof tware, ser vice s,orinstallations;
6.

str. 96(d) forquotedgoodspurchased on a com modit y m ar ketand f orpurchases ofgoods m ade underexcep tionally advantageous conditions, w hi ch onlyar iseint he ver y short term inthecas e ofunusualdi sposals, and notforroutine purchases from regular supplie rs;

ypesora fi rst good orservice which aredevelo ped at experiment, (e) wh en an entity pr ocuresprotot i tsr equestin thecourseof,and for, a part i cularcontrac tfor research, studyororiginal devel opment;

(f) wh en additional constru ction se rvices w hichwere noti ncl uded inthein it ial cont rac t butwhich w erewith int he objec tives of theori ginal t enderdocumentation have,due to unforeseeable cir cumstances,become necessa ry to com pletethe construction servi ces described therein, prov ided thatt he to talvalueof contract s awarded for additional construction serv icesdoes not exceed 50 per centof theamou nt of the main contract; or

(g) insofar asit isst rict l y necessar y where,forreasons ofextremeurgencybroughtabout by eventsunforeseeable by theentity ,thegoods orservices couldnotbe obta in ed in timeunderan open tendering procedur e and theuseofsuchprocedure w ouldr esult in ser io us in juryto theenti ty,theent it y's program responsibilities or t he responsible Party. Thisexception may notbe used as a result of a lackof advanceplanning or concernsrelating to theamount of fundsavai lable to an entity withina parti cular periodoftime. 3. The Parties shall ensureth at,when everitisnecessar y forent it iesto resort to a procedure othertha n open tender ingproceduresbasedon th e circum stances setfort h inpar agraph2,theentities shall ma intai n a record orprepar e a written report provi dingspecific justification f rthecontract.

Con dit ionsFor Supplier s'Partic ipat ionInProcurement

str. 961. Wh ere an entityrequi res suppliersto satisfy regi strati on, quali fi cation, or any other require ments or conditi ons beforebein g permi tte d topartici pateina procurement, each Part y shall ensu r e that a notice inv iting suppliers toapplyforregistrati on,qual i f ication ordem onstration of the suppl iers' satisfaction ofany other condit ionsf orpar tic ipat i on ispublished suf ficien tly inadvancefor inte reste d suppliers to pr epareand submitresponsive applica ti ons and forent itie s to evaluate and make their determinat ionsbasedon suchapplica tions. 2. Each Partyshall ensur e t hatany conditions forpar t i cipation ina procurementarelimited to thosetha t are essent ialto ensur e th at t he pot ent i al suppl ierhas the legal, tec hnica l and financial abil itie s to fulfill t he requirem ent s and techni cal specifications of the procurem ent and that qualification decision s ar e basedsolel y on theconditions forparticipat ionthat have been specif i ed in advancei n notices ortender docum ent ation. 3. Entities shallbe all owed t o es tabl i sh a publicly available list of suppliers qualified t o participate inprocurem ent s.Wher e an entity requi ressuppl iers toqualify forsuc h a list beforebeing permittedto participate in a procur ement, and a suppli er t hat has not previo uslysatisfied such requirements or condition s submitsan application, the ent ityshallpromptly start th e relevant proc eduresand shall allowsuchsupplier topart ici pateinthepr ocurement, pr ovide d there issufficient timetocompletetheprocedur eswit hintheti me peri od established fortenderi ng. 4. Entities shallnot impose t he condition that, i n orderfor a supplier to participate in a proc urement,thesupplier has pr eviou slybeen awarded one or more contrac tsby an enti tyof that Part y ort hatthesupplier hasprior work exper ience intheterrit oryofthat Party.

Publicati on Of Advance No tic es

str. 971. For eachcontract coveredby t hisChapter, ent i t iesshall publish inadvancea notic e inviting inte reste d suppliers tosubmittende rsf orthat contrac t ,exceptaspr ovidedforinArticle 15.6.2. 2. The informat ioni n eachadvance notice ofin tendedpr ocurementshal li ncludea description of theint ended procurement, any condit ionsthat suppliers must fulfill topart icipate intheprocurem ent, thenam e oftheentity ,th e address wh ereall documentsrelating totheprocurementmay be obtained and theti me limi tsforsubmission oftenders. 3. Entities shall publish t he notices in a timelymanner throughmeans which offer thewidest possible and non- discrim inatory accesstot he interested suppliers oftheParties. Thesemeans shall be acces sible f reeofcharg e t hr ough a single point ofaccess specified inA nnex 15.2 .

TenderDocumentation

str. 971. Tenderdocumentation pro videdtosuppliershall contain all inform ation necessary topermit them tosubmitres ponsiv e tenders. 2. Wh erecontrac tingentities do notoffe r freedirect accesstotheent ir e tender docum entsand any supporting docum entsby el ectr onicmeans, ent iti es shall make promptlyavailable th e t ender documentation attherequ estofany suppli eroftheParties.

Time- Limit s

str. 971. Time- limits est ablished by t he ent ities duringa procurement process shal lbe suf ficiently long toenabl e suppliers toprep areand subm i tresponsive tenders, inrelati on tothenature and complexity oftheprocurement. 2. Notwithstand ingpar agraph1,ent i ties shall establis h no l essthantendaysbetwee n thedateon which theadvancenotice ofi nten ded procurementispublished and thef inal dat e forthesubmission ofte nders.

Article 15.11

Techni calSpecifications

str. 971. Technicalspecifi cationsshallbe setout in the notices , tenderdocum entsor additional documents. 2. Each Party shallensure thatitsent it ies do not pr epar e, adopt or appl y any te chnical specifica tions witha vi ew to, orwiththeeff ectof, creating unnecessary obstacle st o trad e betwee n the Parties. 3. Technical specif icat ionsprescribed by ent it i esshall:
4. (a) be in terms of perf ormance and functi onal requirements, ratherthan design or descript ivecharacteristics; and

- (b) be basedon inte rnat ion alstandar ds,where theyexist or, inabsenceofsuc h standards, on nat ional technical re gula tion s 3 ,rec ognisednationa lstandards 4 orbuilding codes . 4. Paragraph3 does not apply when the entity ma y objectiv elydem onstrate thatthe use of tech nical specification s re ferred to in thatpar agraphwould be ineff ective or inappropriate for the fulfillment oft he leg itim at e obje ctiv espursued. 5. Inall cases, entities sha ll consider bidswhich do notcomply witht he technical specifications but mee t thees sentia l r equir ements thereof and arefit forthepurpo se i ntended. The re ferenc e to tec hnical specifications inthetende rdocumentsmust include w ordssuchas'orequiv alen t '. 6. There shallbe no requir ement or ref erenceto a particular trademarkor tradename, pat ent, desi gn or type,specific ori gin,pr oducer or supplier, unlesst here is no sufficiently pr ecise or inte lligibl e way of describi ng theprocur ement requi rementsand providedthatwords,such as 'or equivale nt', areincluded inthet enderdocumentat ion. 7. The tenderer shallhave th e burden of prooft o demonstrat e thatits bid meets th e essentia l requirements.

Awarding Of Con tracts

str. 981. To be consider ed fo r award,a tender must,att he ti me of opening ,conform totheessential requirements of thenot ice s or tend er documentation and be subm itted by a tenderer w ho complies withtheconditions forparticipat ion. 2. Unless an entity dete rmines thati t i s not i n thepublicint er estt o awarda contract, entities shall aw ardthecontr acttot he tender erwho hasbeen det erminedtobe fully capableof undertak i ng thecontract and w hosete nderisdetermined tobe themost advantageous intermsofther equirements and evaluation criteri a setfor thi n theten derdocum entati on. 3. Each Partysha llensuret hati t s entities provideforeffect ivedissemination of theresults of governmentprocurem entproces ses.

Bid Challenges

str. 981. Entitieshallaccor d i mpartial and timelyconsideration to any complaints fro m suppliers reg arding an alleged breachofth isCh apt erinthecontext ofa procurem entprocedure. 2. Each Partyshal l prov ide non- discr iminatory, timely, transparent and effe ctiveprocedures enabl ing suppliers to challeng e alle ged breachesof thisChapter, ari si ng in th e cont ext of proc urementsinwhich theyhave,orhave had,an interest. 3 For thepurpo seofthis Chapter ,a tec hnic alreg ula ti on isa docum ent ,wh ichl aysdown chara cte ristic s of a produc t or a ser vic e or the ir rel ated proce sse s and product ion m ethods,includin g t he applicable administrative provisions, withwhich complia nce isman datory. Itm ay alsoinclude or dealexcl usi velywit h te rminology ,symb ols, packaging, ma rkingorlabel lin g requi re ments asth ey applyt o a produc t, service, process orpr oducti on method. 4 For the purp ose of thisChapter, a st andard isa document approv ed by a recog nise d body, that provides, fo r comm on and r epeateduse,rule s,gui deli nes or charac terist icsf or products or serv icesor related processesand pro ductionmethods,with which compli ance isnot mandatory.Itmay alsoinclu de or deal exclusively witht erminology, symbo ls, packaging, markingorla bel li ng requirements astheyappl y toa product, se rv ice, pro ces s orpr oduction me thod. 3. Challenges shall be heardby an impartia land ind ependentreviewing authority .A reviewing authority which isnot a cour t shall either be subject to judicial reviewor shallhave pr ocedura l guarantee ssimilar totho seofa court. 4. Challenge procedur essha ll provide for, if appr opriate, correction ofthebreachoft hisChapter or,intheabsenceofsuch cor rection ,compensati on forthelossor dam agessuffered, which m ay be limited tocos tsfortender prepar ati on and protest.

Article 15.14

Inf or mationTechnolog y And Cooperation

str. 991. The Partieshall ,toth e exte ntpossibl e,endeavourt o useelect ronic means ofcommuni cation topermiteffic ientdissem ination of inf ormationon governmentprocurement, particu la rl y as regards ten der opportunities offer ed by entities, while res pectingthe principles of tra nspare ncy and nondiscr imination. 2. The Parties shal lendeav our toprovideeach otherwithtechni calcooperat ionand assistance throughthedevelop ment oftr ain ingprogr ams w ith a vie w toachieving a better unders ta ndingoftheir resp ective governmentpr ocurementsystemsand statist ics, aswellasa bett eracce sstotheir respective markets.

Modificat ionsTo Co verag e

str. 991. A Partymay m odifyits coverag e underthi sChapter, pr ovidedthat it :
2. (a) notifies theot herPart y ofthemo dificat ion; and
3. (b) providesthe othe r Part y, within30 days followingthe dateof such notific atio n, appr opriate compen satoryadjust ments toits coverageinordertom aint aina level of coveragecomparabletoth atexisti ng prior t o them odificati on. 2. Notwithstand ing subpar agraph1(b), no com pensatory adjustm entsshall be prov idedto the other Party where themodification by a Party ofits coverage underthi sChapterconcerns:
5. (a) rectifications fa purely fo rmalnature and minor amendments toAnnex 15.1; or
6. (b) one or more cover ed entiti es on which government cont rolor influ ence has been ef fe ctive lyeliminated asa result ofpriv atisation. 3. Wh ereapprop ria te, theCo mmission shall by decision modify therelev antAnn ex toreflect themodification notifi ed by thePartyconcerned.

Supplie s

str. 100Specified inA ppendi x 4 Threshol dsSDR 50,000

Services

str. 100Specified inA ppendi x 5 Threshol dsSDR 50,000

Cons truct ionServic es

str. 100Specified inA ppendi x 6 Thresho l ds SDR 5,000,00

2. Chile's ListofEntiti es

str. 100Presiden ciade laRep ública (Off iceofthePresidentoftheRepu blic)

Furth erNegotiations

str. 100In the case thateithe r Partyoff ers,in the futur e,a non- Partyadditional advantag es wit h reg ard to th e governmentprocu rement market accesscoverageagreedunder thisChapter, itshall agr ee,upon request of theothe r Par ty ,toenter i ntonegotiations witha view toext endi ng coverage underthis Chapteron a reciproca lbasis.

Gov ernmentProcurementWork ingGroup

str. 100Upon re ques t of a Part y, t he Part iesshal l convene a Governm ent ProcurementWork in g Group toaddres sis sue s related t o theimplementation ofthis Chapter. Such issue sma y include:

- (a) bilateral cooperati on relating to t he development and use of ele ctr onic communicationsingovernmentprocur ement systems;
- (b) exchange of statist icsand otherinformati on neede d for monit ori ng procure m ent conduct ed by theParti esand theresults oft he applica tion ofthi sChapter; and
- (c) exploration ofpote nti ali nter es tinfurther negotiatio nsaimed atfurther broadening of th e s cope ofmarketacc es s comm itments underthis Chapter.

(Ministry oftheInterio r)

str. 101Subsecret aría de Interior (Vice - M inistry oftheInt eri or) Subsecret aría de Desarrollo Regional (Offic e oftheVice- Mi nister forR egio nalDevelopment) Oficina Nacionalde Em er gencia( ONEMI) (Bureaufo rN ational Emer gencies) Dire cciónde Seguridad Publica e In f ormación (Directorat e forPubl icSecurity and Inf ormation) Comité NacionalC ontr olde Estu pefac ientes (CO NAC E) (National Narcotics C ontrol C ommittee) Serv icio Elect oral (Electoral Bureau) Fondo Nacional

(National Fund)

Ministerio de Relaciones Ex teriores (Ministry ofForeignA ffairs)

str. 101Subsecret aría de Relac iones Exte riore s (Vice - M inistry ofFore ignAffai rs) Dire cciónGeneralde Relac iones EconómicasInternaci onales (Genera lDirectorate forInternation alEconom icAffairs) Instituto An tártico Chileno (INACH) (Chilean Institute fortheAntarctica) Dire cciónde Fron teras y Límit es(DIFRO L) (Adm ini strati on ofBorde rsand Frontiers)

Ministerio de DefensaNa cional (Ministry ofNa tional De fense)

Ministerio de Minería (Ministry ofM in in g)

str. 103Subsecret aría de Minería

(Vice - M inistry ofMi ning )

ComisiónChilena de EnergíaNuclear(CCHEN )

(Chilean NuclearEnerg y Commission)

ComisiónChilena delC obre( C OCHIL CO)

(Chilean Copper Commission)

ComisiónNacionalde Energía

(National EnergyCommiss i on)

Serv icio Nacionalde Geologíay Minería(SERN AGE OMIN)

(National Geology and Mining Bureau)

Ministerio de Planif icac ióny Cooperación (Ministry ofPlanni ng and Cooperation)

str. 103(National C orporation fortheDevelop ment ofIndigenous Peoples)

Subsecret aría de Planificación y C ooperación (Vice - M inistry ofPlanni ng and C ooperation) Corporac iónNaciona lDesarr ol loIndí gena (CO NAD I) Fondo de Solidaridad e Inver siónSocial ( FOSIS) (Social Solidarity and Investm entFund) Fondo Nacionalde laDisc apaci dad ( FO NADIS) (National Fund forDisabili t i es ) Instituto Nacionalde laJuvent ud (INJUV) (National Institute forYoung People) Agenciade CooperaciónInt er naci onal(AG CI)

(International Cooperation Agency)

Ministerio de Obras Púb licas (Ministry ofPublicWor ks)

str. 104Subsecret aría de Obras Públic as

(Vice - M inistry ofPublic Work s)

Dire cciónGe neral de Obras Públi cas

(Genera lDirectorate ofPublic Wor ks)

Dire cciónde y Ejecuc iónde ObrasPúblicas

(Adm ini strati on and Impl ementat ionofPublic Works)

Dire cciónde Servicios de Concesiones

(Adm ini strati on ofConcessio n Serv ices)

Dire cciónde A eropuertos

(Adm ini strati on ofAir port s)

Dire cciónde A rquitectu ra

(Adm ini strati on de Architectu re)

str. 105Dire cciónObrasPort uarias

(Adm ini strati on ofPortWork s)

Dire cciónde Planeami ent o

(Adm ini strati on ofPlanning)

Dire cciónObrasHidráu lica s

(Adm ini strati on ofHydraulic Wo rk s)

Dire cciónVialidad

(Highway and Road Adm inist ra tion)

Dire cciónContabilidad y Finanzas

(Adm ini strati on ofAccounti ng and Fi nances)

Instituto Nacionalde H idráulica

(National Hydraulics Inst i t ute )

Superint endencia Serv icio sSanitarios

(Superintendence ofSanitation Servi ce)

Ministerio de Transporte y Tele com unicacione s (Ministry ofTransportand T el ecommunicat ions)

str. 105Subsecret aría de Transpor tes (Vice - M inistry ofTranspo rt ) Subsecret aría de Telecomunicacion es (Vice -M inistry ofTele communications) JuntaAeronáutica Civil (Civil Aviation Board) CentroControl y Cert ificac iónVehicul ar(3CV ) (Center forVehicle Control and Cert ific at ion) ComisiónNacionalde Segur id ad de Tránsi to(CO NASET ) (National C ommis sionfo rTraff icSecurity) Unidad Operativa Contro lde Tránsito (UO CT) (Tr affic Co ntrol Operativ e Unit)

(Ministry ofHealth)

str. 105Subsecret aría de Salud

(Vice - M inistry ofHealth)

Central de Abastecimiento sdelSistemaNacionalServicios de Sal ud (CEN ABAST)

(Central Procuremen tfo rtheNationa lHealt h Services)

Fondo Nacionalde Salud(FONASA)

(National Health - CareFund)

Instituto de SaludPública (ISP )

(Public He alth Institute) Superint endencia de ISAPRE S (Superintendency ofPri vateMed ical Insurance C ompanies) Serv icio de SaludArica (Arica Public HealthCareServ ice) Serv icio de SaludIquique (Iquique Public H ealth CareSer vi ce) Serv icio de SaludAn tof agasta (Antofagasta Public HealthC ar e Ser vice) Serv icio de SaludAtacama (Atacama Public H eal thCare Ser vi ce) Serv icio de SaludCoquimbo (Coquimbo Public HealthCare Serv ice) Serv icio de SaludValpara íso - San Antonio (Valp araíso - San AntonioPublic Health CareServic e) Serv icio de SaludViña delMar - Quillo ta (Viñ a delMar - Quil lot a Public Health Care Servic e) Serv icio de SaludAconcagua (Aconcagua Public HealthCareServ ice) Serv icio de SaludLibertador General BernardoO'Higgins (Liberta dorG eneral B ernardo O'HigginsPublic Healt h Care Service) Serv icio de SaludMau le (MaulePublic H ealth CareSer vi ce) Serv icio de SaludÑu ble (ÑublePubli c HealthCare Ser vice) Serv icio de SaludConcepción (ConcepciónPublic HealthCare Serv ice) Serv icio de SaludTalcahua no (Talcahuano Public Health CareServ ice) Serv icio de SaludBío- B ío (Bío - Bío Public H ealt h C ar e Serv ice) Serv icio de SaludArauco (Ara uco Public Healt h Care Serv ice) Serv icio de SaludAraucaníaNorte (Ara ucaníaNortePubli c He alth C areSer vice) Serv icio de SaludAraucaníaSur (Ara ucaníaSurPublic He alth CareServ ice) Serv icio de SaludValdi via (Vald ivia Public Healt h C ar e Serv ice) Serv icio de SaludOsor no (OsornoPublic Healt h Care Serv ice) Serv icio de SaludLlan quih ue- Chiloé - Palena (Llanquihue - Chiloé - PalenaPublic HealthCare Service) Serv icio de SaludAy sén (AysénPublic H ealth CareSer vi ce) Serv icio de SaludMag allanes (Ma gal lan esPublic HealthC ar e Serv ice ) Serv icio de SaludMetropolita no Ori ente (East Metropolitan AreaPublic HealthCareServi ce) Serv icio de SaludMetropolita no Central (Centr alMetropolitan Area Public HealthCareService) Serv icio de SaludMetropolita no Sur (SouthMetropolitan Area Public Health CareService) Serv icio de SaludMetropolita no Nort e (NorthMetropolitan A reaPublic Health CareService)

str. 106Serv icio de SaludMetropolita no Occidente (West Me tropolitan Area Public HealthCareService) Serv icio de SaludMetropolita no Sur- O riente (South - East M etropolitan Publ icHealthCareService) Serv icio de SaludMetropolita no delAmbiente

(Metropolitan Environmental Publi c He al thCare Service)

Ministerio de laVivi enda y Urbanismo (Ministry ofHousing and Urban Planning)

str. 106Subsecret aría de Vivienda

(Vice - M inistry ofHousing)

Parq ue Metropolitano de Santiag o

(Santiago Metropolitan Park )

Serv icios R egionales de Vivi enda y U r bani smo

(Regional Housingand Urban Plannin g Services)

(Ministry ofNa tional Assets )

str. 106Subsecret aría de BienesNaciona les

(Vice - M inistry ofNationa lAssets)

(Ministry ofAg riculture)

str. 106Subsecret aría de Ag ricu ltura

(Vice - M inistry ofAgricultur e)

ComisiónNacionalde Riego(CNR)

(National Irrigation Com mission)

Corporac iónNaciona lForesta l(CONAF)

(National Forestry C orporation)

Instituto de Desar roll o Ag ropecua rio (INDAP)

(Agricul ture and Lives tockDevelopmen tI nstitute)

Oficina de Estudios y Política sAgrícola s (OD EPA)

(BureauofA grarian Studies and Ag ricultural Pol ic y)

Serv icio Ag rícola y Ganadero (SAG)

(Agricul ture and Lives tockSer vi ce)

Instituto Investigaciones Agropecua ria s(INI A)

(Agricul ture and Lives tockResearchInstitute)

(Ministry oftheNationalBureau forW omen)

str. 106Subsecret aría N acio nalde laMujer

(Vice - M inistry oftheNational Bu reauforWomen)

(Regi onalG overnments)

str. 106Intendencia IRegión (Intendancy RegionI) Gob ernac iónde A rica (Governor's O ffic e - Arica) Gob ernac iónde Parinacot a (Governor's O ffice -Pari nacota) Gob ernac iónde I quique (Governor's O ffice -Iquique) Intendencia IIRegión

(Intendancy RegionII)

Gob ernac iónde A ntofagasta (Governor's O ffice -Antofag asta ) Gob ernac iónde El Loa (Governor's O ffice -El Loa) Gob ernac iónde Tocopilla (Governor's O ffice -Tocopilla ) Intendencia III Re gión (Intendancy RegionIII) Gob ernac iónde Chañaral (Governor's O ffice -C hañara l) Gob ernac iónde Cop iapó (Governor's O ffice -C opi apó) Intendencia IV Región (Intendancy RegionIV) Gob ernac iónde H uas co (Governor's O ffice -Hua sco) Gob ernac iónde El Elqui (Governor's O ffice -El Elqui) Gob ernac iónde Limarí (Governor's O ffice -Limarí) Gob ernac iónde Cho apa (Governor's O ffice -C hoapa) Intendencia V Región (Intendancy RegionV) Gob ernac iónde Petorca (Governor's O ffice -Petorca) Gob ernac iónde Valpar aíso (Governor's O ffic e -Valpar aiso) Gob ernac iónde San Felip e de Aconcagua (Governor's O ffice -San Felipe de A concagua) Gob ernac iónde Los Andes (Governor's O ffice -Los Andes) Gob ernac iónde Q uillota (Governor's O ffice -Quillota) Gob ernac iónde San Antonio (Governo r's O ffice -San Antonio) Gob ernac iónde I sla de Pascua (Governor's O ffice -Isla de Pas cua) Intendencia VI Región (Intendancy RegionVI) Gob ernac iónde Cachapoal (Governor's O ffice -C achapoal) Gob ernac iónde Colchag ua (Governor's O ffice -C olchag ua) Gob ernac iónde CardenalCaro (Governor's O ffice -C ar denalCaro) Intendencia VIIRegión (Intendancy RegionVII) Gob ernac iónde Curicó (Governor's O ffice -C uricó) Gob ernac iónde Talca (Governor's O ffice -Talc a) Gob ernac iónde Linar es (Govern or's O ffice -Linares) Gob ernac iónde Cauquenes

str. 108(Governor's O ffice -C auquenes) I ntendencia VIIIRegión (Intendancy RegionVIII) Gob ernac iónde Ñ uble (Governor's O ffice -Ñuble) Gob ernac iónde B ío - Bío (Governor's O ffice -B ío - Bío) Gob ernac iónde Co ncepci ón (Governor's O ffice -C oncepció n) Gob ernac iónde A rauco (Governor's O ffice -Arauco) Intendencia IX Región (Intendancy RegionIX) Gob ernac iónde Malleco (Governor's O ffice -Malleco) Gob ernac iónde Cautí n (Governor's O ffice -C autín) Inte ndencia X Región (Intendancy RegionX) Gob ernac iónde Valdi vi a (Governor's O ffice -Valdi via) Gob ernac iónde O sor no (Governor's O ffice -Osorno) Gob ernac iónde Llan quihu e (Governor's O ffice -Llanquihue) Gob ernac iónde Chilo é (Governor's O ffice -C hiloé ) Gob ernac iónde Palena (Governor's O ffice -Pale na) Intendencia XI Región (Intendancy RegionXI) Gob ernac iónde Coihai que (Governor's O ffice -C oihaique) Gob ernac iónde A ysén (Governor's O ffice -Aysén) Gob ernac iónde G eneral C ar rer a (Governor's O ffice -Gen er alCarrera) Intendencia XIIRegión (Intendancy RegionXII) Gob ernac iónde Capit án Prat (Governor's O ffice -C apitán Prat) Gob ernac iónde U ltim a Esperanz a (Governor's O ffice -UltimaEsperanza ) Gob ernac iónde Magallanes (Govern or's O ffice -Mag allanes ) Gob ernac iónde Tierra delFuego (Governor's O ffice -Tierra delFuego) Gob ernac iónde A ntártica Chilena (Governor's O ffice -Antár tica C hi l ena) Intendencia RegiónMetropolitana (Intendancy Metropoli tanRegion) Gob ernac iónde Chacabuco (Governor's O ffice -C hacabuco) Gob ernac iónde Cordillera (Governor's O ffice -C ordillera)

str. 109Gob ernac iónde Maipo (Governor's O ffice -Maipo) Gob ernac iónde Talag ante (Governor's O ffice -Tala gante) Gob ernac iónde Melipi ll a (Governor's O ffice -Melipilla ) Gob ernac iónde Santiag o (Governor's O ffice -Santiago)

3. Korea'sListofEntities

str. 110Board ofAuditand Inspection OfficeofthePrimeMiniste r Ministry ofPlanning and Budg et Ministry ofLegis latio n Ministry ofPatriots and Veter ans Affai r s Ministry ofFinanceand Economy Ministry ofEducation and Human ResourcesD evelopment Ministry ofUnification Ministry ofForeignAffair sand Trade Ministry ofJustice Ministry ofNational Defense Ministry ofGovernment A dministration and H ome Affai rs M in istry ofScienceand Technolog y Ministry ofCulture and Touri sm Ministry ofAgricultur e and Fores try Ministry ofCommer ce,Industr y and Energy Ministry ofInformation and Communica t ions Ministry ofHealthand Welfare Ministry ofEnvironment Ministry ofLabor Ministry ofGender Equality Ministry ofConstructi on and Transportation Ministry ofMaritim e Affairs and Fi sher ies Governmen tInformati on A gency FairTradeCommission Fina ncial Supervisory Commission Civil Servic e Commission National Tax Service Ko reaCusto ms Serv ice Public Procurement Ser vic e (lim ited t o purchases forentities i n thi s list only. Regardingprocu r em ent forent ities inAppendix2 and Appendix 3,th e coverages and th resholds forsuch entities ther eunder shall be applied.) National Sta tist ical Office Supreme Public Prose cut ors' Office Military Manpower Administra tio n National Police A gency( except purchases forthepurposeofmaintaini ng public order) Ko reaMeteorological Adm inistr ati on Cultural Properties Administration RuralDevelopmentA dministration Ko reaForest Serv ice Sm all and Medium Business Adm inistration Ko reanI ntellectual Property Offi ce Food and Drug A dmini str ation Ko reaNational Railro ad Administration

National MaritimePoli ceAg ency(except pur chases f orthepurposeofmaint ai ningpublic orde r)

For Chil e:

str. 110The above central gover nment entitie s include thei rsubordinat e linear organiz atio ns,r egi onal and sub- regional subdiv isio ns,pr ovid ed that theydo nothave an indust rial orcommercialcharacter.

For Ko rea:

str. 1101. The above centra lgover nment entities includ e t hei r subordinat e linear organ iz at i ons,regional and sub- regional subdiv isio ns,pr ovid ed that theydo nothave an indust rial orcommercialcharacter. 2.

str. 111This Append ix does not applyto thesingletendering procurementincluding set - asides for smalland me dium- si zed businesses acc ordingtotheA ctRelat ingtoContracts towhich theSta teisa Part y and itsPres idential Decree.Afterthe Administrator of the Sm alland Medium Business Administ ration designates speci ficgoods to be purchasedfrom smalland m edium- sizedbusi ness, Ko reawil lnotify Chileoftheaddition tot he existi ng lis tofgoodsannually. 3. The Defens e Logistics Ag encyshall be considered aspart oftheMinist ryofNational Defense (MND). Subject tothedecision oftheKorean governmentundertheprovi sions oft he G eneral N otes, forpurchas es by theMND ,this Ag reementwillappl y tothefollowing FSC categories only,and for serv ices and cons tru ction ser vi cesli stedinAppendices5 and 6,i twill applyonlytothoseareas which ar e notrelated tonati onalsecuri tyand def ense.

Supplie s

str. 112Specified inA ppendi x 4 Threshol dsSDR 200,00 0

Services

str. 112Specified inA ppendi x 5 Threshol dsSDR 200,00 0

Co nstruct ionServic es

str. 112Specified inA ppendi x 6 Threshol dsSDR 15,000,000

2. Chilehasno comm i t ments regardingthi s Appendix .

3. Korea'sListofEntities

str. 112SeoulMetropolitan Gov ern ment CityofBusan CityofDaegu CityofIncheon CityofGwangju CityofDaejon Kyo nggi - do Gangwon - do Chungcheongbuk- do Chungcheongnam - do Gyeongsangbuk- do Gyeongsangnam - do Jeollabuk - do Jeollanam - do Jeju - do

For Korea:

str. 1121. The above sub- centraladministrative government enti t ies include theirsubord ina te organizat ionsunderdir ectcontr oland offices asprescribed intheLocalAutonomy Law oft he Ko rea. 2. This Append ix does not applyto thesingletendering procurementincluding set - asides for smalland medium - si zed busine ssesaccording totheLocalFinanceLaw and its Preside ntial Decre e. AftertheAdministrator oftheSmalland Medium Business Adm inistr ation designatespe cific goods tobe purchased from smalland medium - sized business, Korea w ill notify Chileoftheaddition tothe existi ng lis tofgoodsannually .

Supplie s

str. 113Specified inA ppendi x 4 Threshol dsSDR 450,00 0

Cons truct ionServic es

str. 113Specified inA ppendi x 6

Threshol dsSDR 15,000,000

2. Chile's ListOf E ntit ies

str. 113Empre saPortuaria Arica

Empre saPortuaria Iqui que

Empre saPortuaria An to fagasta

Empre saPortuaria Coquimbo

Empre saPortuaria Valpar aíso

Empre saPortuaria San Antoni o

Empre saPortuaria San Vicente - Tal cahuano

Empre saPortuaria PuertoMontt

Empre saPortuaria Chaca buco

Empre saPortuaria Au str al

Aeropuertos de PropiedaddelEstado, Dependiente sde laDire cciónde Aeronáutica Civil

3. Korea'sListofEntities

str. 113Ko reaDev elopmentBank

Ind ust ria lBank ofKorea

Ko okm inBank

Ko reaMin ting and Secur it y Printing C or poration

Ko reaElectric Pow erC orp oration (except purchases ofproducts inthecategor i esofHS N os.8504, 8535,8537 and 8544)

Ko reaCoalCorporation

Ko reaResources Corpor ation

Ko reaNational O il Corporat ion

Ko reaTrade - Inves tmentProm otion Agency

Ko reaHighway Corporation

Ko reaNational H ousi ng Corporati on K oreaWater Resourc esC or poration Ko reaLand Corporati on Ko reaAgric ultural and RuralInf rast ru ct ureCorpor ation Agricultural and Fisher y MarketingC orporation Ko reaNational TourismOrgani zation Ko reaLaborW elfare Co rp oration Ko reaGas Corporatio n

For Chil e:

str. 114ThisAppendix coversallotherpublicundertaking s,overwhich thepublicauthorities ma y exercise directly orindir ectly a dominantinfluence, which have as one ofthei ractivities any ofthose ref erred tobelow orany combinat iont hereof:

- (a) theprovision ofair por torother term inal faci l it iestocarr i ersby air, and
- (b) theprovision of m aritime or inland portor ot herterminal fa cili ti es tocarriers by sea orinl and waterway,

prov idedthat theydo nothavean indust ri alorcommercialchar acter.

For Korea:

str. 1141. This A ppendixdos not apply to thesingle tenderi ng procurementincluding set - asidesfor smalland medium - sizedbusine ssesaccording to theGovernment I nvestedEnterpr i s e Managem ent Law and AccountingRegulations on Government Invested Enterpr ise. AftertheAdministrator ofthe Sm all and Medium BusinessA dm inistration designates specific goodstobe purch asedfrom smalland medium - sized busine ss,Ko reawill notify Chileoft he addi tion totheexi st inglis tofgoodsannually. 2. ThisAppendix coversal lotherpublicundertakings, overwhich thepublicaut hori t i es may exercise, directly orindi rectly ,a dominantinfluence, which haveasone oftheir activities any ofthose ref erred tobelow orany combinat iont hereof:
3. (a) theprovision ofair por torother te rminal faci l it iestocarr i ersby air, and
4. (b) theprovision of m aritime or inland portor ot herterminal fa cili ti es tocarriers by sea orinl and waterway,

prov idedthat theydo nothavean indust ri alorcommercialchar acter.

Suppl ies

str. 115SubjecttotheG enera l Notes,t he governmentsof Korea and Chileshall coverallsupplie s unless oth er wise specif iedinAppendices 1 to3. Neit herParty hasany Notestothis A ppendix.

Service s

str. 115Forthepurposeofthi s Chapterand without pr ejudic e toA rticl e 15.2, no servic esoftheW TO Universal List ofServ ices (W TO/MTN.GNS/ W/120) shall be excl uded.

Co nst ru ction Services

str. 115Forthepurposeofthi sC hapter and without prejudice toArt icle 15.2, no constr uct i on service s underthedivi sionofth e CP C conce rning construction work areexcluded.

GeneralNotes

str. 1151. Nothinginthi s Ag reementshall be construed toprevent a Partyfrom tak ingany act i on ornot disclosing any inform at ion which itconsiders necessary forthepr otect ion of its essential security inte rests r elating to the pr ocurement of arms, amm unit ion or war materials, or to procurem ent indispensab lefornational securi tyordefencepurposes . 2. Subjecttotherequir ement that suc h measuresunderpara graph1 arenotapplie d ina manner which would cons titu tea means ofarbit raryorunjustifiable discr imination betweentheParties, ora disg uisedrestriction on internat ional trade, not hi ng inthis Agreem entshall be construed topre venta Part y from imposingor enforcing m easures, which isnecessary to pro tect publicm orals, orderor safety, human, animalorplant life or heal thor intellectual property, or which re l at es totheproducts orservi cesofhandicapped per sons,ofphilanthrop icinsti tutions orofprison l abour. 3. Korea underst ands thatsel ectivetendering proceduresare a categoryof open tendering proc edures and thatthey are pr ocedures whereby only the suppliers satis fying qualifications requirements established by theentiti es, l ist ed inAppendices1 to3,areinvi t ed tosubmita t ender.

For Chil e:

str. 115Diari o O ficial de laRepública de Chile http://www. chilecom pra.cl

For Korea:

str. 115Official Gazette ofKorea http://www. g2b.go.kr /

APPEN DIX 1

str. 116(Refer redtoinArticl e 15.8.3)

Value O fThresholds

str. 1161. In cal culating thevalueof a contract ,entities shall include any procurem entfo r which the valu e of the procure m ent is estim ated to be below the relevant val ues speci fiedin the Parties ' resp ective Appendices toAnnex 15.1of this Chapter. Entities shal l i ncludeinsuch an estim at e the maximum total estim at ed valueof th e procurementand any resulting cont racts over thedur ationof such contracts , takingintoaccountalloptions, premiums, fe es,commissions,inte restand other rev enue streams orfo rms ofremunera tion, provided forinsuchcontracts. 2. Each Partyshallpublishthe value of t he thresholds under thisChapterexpressedin the correspond ingnational currenc y. 3. For Korea,thecalculati on ofthese values shall be base d on theaverageofth e daily values of the SpecialDrawing Rights( SDR ) to Korean won exchange rat e over t he 24 months preceding October1 or No vember 1 of theyearprior t o thethr es hol ds innationa lcur renc y becomes effective, which will be from Janua ry1. 4. For Chile, th e calc ulat ionofthese values shall be basedon theaverageoft he daily val uesof theSDR toChileanpeso exchang e ra teover th e 24 m onthsterminat ingon thelast day of August preceding th e revision w ith effect from January1. 5. The valueof t he t hresholds thusrevised shall, where necessary, be rounded down to the nearest te n thousand C hilean pesoand tenmillion Korean w on.

Oblig ations

str. 1161. Each Partysha llprov ide,in itster ritory, to thenati onalsof theotherPartyadequateand ef f ective protection and enf orcementof intel lectual prop ertyrights, whileensuring thatmeasuresto enforce in tellectual propertyrig htsdo notthemselves become unnecessary barriers toleg it imatet r ade. 2. To provideadequateand eff ective protect ionand enforcement ofintellectual pr oper tyr ig hts, each Partyshallfai thfu llyimplementtheinternational convent ionsi t has acce ded to,including the TRIPS Ag reement.

More Extens iveProtection

str. 117A Partymay imple ment inits domesticl aw more extensive protection ofintel lect ualproper t y rig htsthanisr equiredunder thi s Ag ree ment,providedthatsuch prot ecti on isnotinconsistent with this Agreement and theTR IPS Agreem ent.

Protection O fTrademarks

str. 1171. Article6 bis of th e ParisConvention shal l appl y, mutatismutandis , to services. In deter miningwhethera t rad emark iswellknown, t he Partieshall t ake accountoftheknowledgeofthe tr ademark intherelev antsecto r of th e public, i ncluding know ledgeinthePar tyconcerned, obtained asa resul tofthepromotion ofth e tr ademark. 2. Iftheuseofa tradem ar k isr equi r ed by t he legislation fa Partytom aintain reg istrati on,the reg istrati on may be cancelled only af teran uni nt errupted periodof atleast th reeyearsof nonuse, unlessvalidreasonsbase d on theexist ence of obstacl es to such use areshown by thetrademar k own er. 3. Wh en subject to the control of itsow ner,use of a trade m ark by anotherper son shall be recognize d asuseofthetrademark forthepurposeofmaintaining theregistration.

Protect ionOf Geographical Indicati ons

str. 1171. For thepurposeofthis Ag reement, geographic alindi cations areindications, which identify a good as originating int he terri tor y of a Party, or a regionor loca lity inthat territory ,where a given quality, r eputation or ot her char acte ristic of thegood isessentially attri but ableto i t s geographical origin. 2. With therecog ni tionof th e i mportanceof thepr otection of geographical indications, both Parties shallprotect, in com pliancewith theirrespective domesticlegi slation, the geographic al indica tions oftheot herPartyregi st eredand/or protected by that ot herParty, that fal lwithin thescope ofprotect io n stated inArticles 22,23 and 24 oftheTR IPS Agreem ent. Further totheacceptance of thisobli gation, both Part ie s shall not permittheimportation, manufact ure and saleof products, in compliancew i ththeir resp ectiv e domesticlegislation, w hichusesuchgeographical indications ofthe other Party, unless suchpr oducts have been produce d i n t hatother Par ty. 3. Chileshall prote ctt he geographic alindica tio ns listed inAnnex 16.4.3 forthei rexclusiv e use in productsoriginat ing in Korea.Chil e shallpr ohibit t he importation, man ufac tureand saleof prod uctswithsuch geogr aphical indi cat ions, unl esstheyhave been producedinKorea,inaccordanc e withtheapplicable Korean law. 4. Korea shall pr otec tthegeogr aphic alindications listed inAnnex 16.4.4 fortheir exclusive use in productsoriginat ing in Chile.Ko rea shallpr ohibit t he importation, man ufac tureand saleof prod uctswithsuchgeographi calindications, unl esst hey have been producedinChile, inaccordance witht he applicable Chileanl aw. Thisshall inno way prejudice therights that Korea ma y recognize, inaddit iontoChile, exclu siv el y toPer u w ith respect to'Pisco'. 5. Withintwo yearsfrom t he entryintoforceof thi s A greement, both Parties shall enterinto consu ltati ons topro tect additi onalgeographical indications. As a result of theseconsultations, both Parties shall protect and/o r r ecogni ze,under the t erms stated i n thisAgreeme nt,thegeogr aphical indications listed in Annex 16.4.5and any addi ti onal geographical i ndicatio ns submittedby the Parties that fall with inthescopeof prot ection of geographical indications setoutinArticles 22,23 and 24 ofth e TRIPS Ag reement.

Enforcement

str. 118The Partieshall provi de intheir respec tive laws f or theenforcement ofin t ellec t ualproper t y rig htscons istent w ith th e TRIPS Agreement,inpartic ular, Articles 41 to61 t hereof.

Co nsul tative Mecha nism

str. 119Any consul tations betweent he Parties withrespect totheimplementat ionorinterpretation of this Chaptershall be carrie d outunderthedisput e settlement proc edur esr eferred toinChapte r19.

ANNEX 16.4.3

Geo graphical Indicatio nsO fKorea

str. 119- -Korean G inse ng (f orGinse ng)
- -Korean K imchi(for Kimch i)
- -Boseong(for Tea)

ANNEX 16.4.4

G eogr aphical I ndicati onsOf C hile

str. 119-Pisco(for w ineand spi rits) -Paj arete (for wine and spirits)

- -Vino Asoleado(f orwine)

ANNEX 16.4.5

Geographical Indicatio nsOf Wine sOri ginating I n Chil e

str. 119Win esofthefollowing r egions ,subregions and zones:

Viticole Region ofAtacam a

str. 119- Subregion: Vallede Co pi apó

- Subregion: ValledelHu asco

Viticole Region ofCoquimbo

str. 119- Subregion: ValledelElqui

- Subregion: ValledelLimarí

- Subregion: ValledelC hoapa

Viticole Region ofAconca gua

str. 119- Subregion :Vallede Aconcagua

- Subregion: Vallede Casablanca

Viticole Region ofValleCentral

str. 119- -
- Subregion: ValledelMaipo
- -Subregion: ValledelRapel
- GLYPH<1> Zone:Vallede Cachapoal
- GLYPH<1> Zone:Vallede Colchagua
- -Subregion: Vallede Cu ricó
- GLYPH<1> Zone:ValledelTeno
- GLYPH<1> Zone:ValledelLontué
- -Subregion: ValledelMau le
- GLYPH<1> Zone:ValledelClaro
- GLYPH<1> Zone:ValledelLoncomilla
- GLYPH<1> Zone:ValledelTutuvén

Viticole Region oft he South/ Sur

str. 119- Subregion: ValledelItata

- Subregion: ValledelBío- Bío

Defin itions

str. 120Forpurposes ofthis Ch apter:

adm inistrative ruling of general appli cation means an adm inist rativeruling or inte rp ret ation that applies toall per sons and fact situat ionsthat f al lgenerally w ithin its ambitand t hat establ ishes a norm ofconductbutdoesnoti nclude:

- (a) a determinatio n or ruling m ade inan administrat i ve or quasi - judicial proc eedingthat applies toa particular person, good orservice oftheot herParty ina specific case; or
- (b) a ruling that adjudic ates withr espec ttoa particular actorpra cti ce.

ContactPoints

str. 1201. Each Partyshall des ignate a cont actpoint tofacilitate com munications betweentheParties on any matter coveredby this Agreement. 2. Upon request ofa Par ty ,thecont actpoi ntoftheother Party shall indicat e th e office orofficial resp onsible fo r t he matter and assist, asneces sar y,infacilitating communicationwitht he requesting Part y.

Publica tion

str. 1201. Each Partyshall ensureth atits laws,regul ati ons,procedures and administra tiv e rulings of generalapplication re lati ng t o any mattercover ed by thisAgreement are pr om ptlypublishedor otherwise made publicl y available. 2. To theexten tpossib le, eachParty shall:
3. (a) publis h inadvanceany suchm easure that i tproposes toadopt; and
4. (b) provideinter estedpersonsand theot herPartya reasonable opportunity tocom ment on suc h pr oposed measures.

Noti ficat ionAnd Provision Of Inf ormation

str. 1201. To themaximum extent possible, each Partyshal lnoti fy theotherPartyof any proposedor actu alm easurethatt he Part y considers might materially affect theoperat ion of this Agreement or otherwise substantiall y affe cttheother Party's interest sunderthis A greement.

str. 1212. Upon request of theotherParty, a Partyshal lpr omptly prov ideinform ation and r espond to questions pertaining to any actual or proposedmeasure,whether or not the otherPar ty has been previousl y notified oft hatmeasure. 3. Any notification r info rmationprovidedunderthis Article shall be wit houtpre jud i ce as to whe ther themeasureisconsist entwiththis A greement. 4. The informat ionre fer redtounderthi sArti cleshall be consi der ed tohave been pr ovidedwhen it hasbeen made available by appr opriate notification totheWTO orw hen it hasbeen made available on theoffici al, public and fee - f reeacces sible w ebsite ofthePartyconcerne d.

Exchange Of Info rmat ionOn State Aid

str. 121Each Partymay reques tin formation on i ndividual casesof stat e aidthat i tbel ievestoaffe ct tr ade betwee n theParties. The requested Par tyshall make its besteffort s toprovidenon- confidential infor mati on.

A dminis tr ative Proceedings

str. 121With a view toadminist ering ina consist ent, impartial and reasonable manne rall measuresof generalapplication af fecting matters coveredby thi s Agreem ent, each Partyshall ensurethatin its administrative proceeding s apply ingm easures referred t o inArt i cle17.3toparti cula r persons, goods orservi cesoftheother Partyi n speci fic cases:

- (a) wh ereverpossi ble,persons of the ot her Party thatare direct ly affec ted by a proceeding are prov ided with a reasonab le notic e, in accordancewit h domestic procedures, when a pr ocee dingi s initiated, i ncluding a descrip tion ofthenature oft he proceeding, a statement oftheleg alaut hority underwhich t he proceeding isin itiated and a general descrip ti on ofany issues incont rove r sy;
- (b) such perso ns ar e aff or ded with a reasonab le opportunity to pr esent factsand ar guments insupport of thei rpositions prior toany fi naladminist rat i ve action, when time, thenature oftheproc eedingand thepubl icint er est permit; and
- (c) its procedures ar e inaccor dance withits domestic law.

Review And Appeal

str. 1211. Each Partyshall est ablish or m aintain judicial, or admini strative tribun alsor procedures for thepurposeof theprompt rev iew and,where warrant ed,correction of final administrative actions reg ar dingmatters coveredby thi sAg reement. Such tr i bunalsshal lbe impartial and i ndependentofthe office or authority entrusted with adm i nistr at iv e enforcementand shallnot have any substantia l inte rest intheoutcome ofthem at ter. 2. Each Party shall ensurethat, inany suchtribunals orprocedures, theparties totheproceeding ar e provided withtheright to:
3. (a) a reasonable opportu nity tosupportordefendtheir respect ivepositions; and

- (b) a decis i on based on theevidenceand submissions of recordand,w herere quir ed by domesti c law,therecord com piled by t he administrative authority. 3. Each Partyshal lensure ,subject toappealor fur therreviewas provide d inits domesticlaw, that suchdecisionshall be implement ed by,and shall gover n thepractice of, theof fices orauthorities withrespect t o theadmini strativ e act ionatissue.

The Fre e TradeCommiss i on

str. 1221. The Parties herebyesta blish theFreeTradeCommission,comprising offic ials re ferre d toin Ann ex 18.1.1 ortheir des ignees. 2. The Parties, throughtheCommission,shall:

(a) supervis e theimplementation and appropriate application of theprovision s of this Ag reement;

(b) evaluate theresu lts obtai ned i n thecourseoftheappl i cation ofthis Agreement;

(c) superv is e th e w or k of t he com mitteesand worki ng groups establish ed under this Ag reement, referred toi n Annex 18.1 .2(c) ;

(d) ensurethat, with r egar d to publicenterpr isesand enterprises to which special or exclusiv e rights have been granted, infulfi llmentof Art icle 14.8, following thedate of ent ry intoforceof t his Ag reement,any m easuredistor ti ng tradein goods or servi ces between thePar ti esisneith erenacted orm ai nt ainedtoan extent contra ryto th e Part iesinteres ts ;and

(e) consider any othermatterthat m ay affect theopera tionof t hisA greement ,or that i s entruste d totheComm i ssion by thePar ties. 3. Inth e fulf illment ofit sfunct ions, t he C ommission may:

(a) establish and delegate responsibilities to ad hoc or standing committees, workin g groupsorexpert gr oupsand assig n the m withtasks on specific matters ;

(b) seektheadviceofnon- gover nmentalpersons orgroup s;

(c) modify,inaccor dancewithAnnex 18.1.3(c):

(i) theestablish ed ru les oforigi n inAnnex 4;

(ii ) the Schedulesesta blishe d in Annex 3.4,in orderto acc el er ate the tariff elimination process;

(iii ) theUniform Regulati ons;and

(iv ) theAnnexes 15.1and 15.2( Government procurement); and

(d) tak e suchoth eraction intheexercise ofi tsfunct ions, astheParties may agree. 4. The Commission sha llestablish it s r ulesand procedu res. All decisions of theCom missi on shall be adoptedby mutualagr eem entbet w eentheParties. 5. The Commission shall convene atleast once a yearinr egular session. Regularsessions ofthe Commission shall be chair ed alternately b eachParty .

The Secretariat

str. 1231. Each Party her eby desig nates t he competentnat ional organreferred toinA nnex 18.2toserve asit s Secretariat forpurposes ofth isAgreement. 2. For purposesof thi s Agreement,all communicationor not i fication toorby a Partyshall be made thro ugh its Secr eta ria t.

ANNEX 18.1.1

O fficials Of The FreeTrade Commission

str. 123Forpurposes ofArti cle18.1, officia lsoftheCommission are:

- (a) inthecaseofChile, theMinister ofForeignA ffairs, orher/his desi gnees; and
- (b) inthecaseofKorea,t he Minister forTrade,orher/h isdesignees.

ANNEX 18.1.2( c)

Comm ittees And Work ingGroups

str. 1231. Committees:
2. (a) Committeeon TradeinGoods;
3. (b) Committeeon Sanitary and Phytosani tary Measures;
4. (i) Sub- Committee on Animal Health;
5. (ii ) Sub- Committee on Plant Prot ection; and
6. (iii ) Sub- Committee on Food Safety ;
7. (c) Committeeon Stand ar ds- Related Measures;
8. (d) Investment and Cross - BorderTradeinServices Com mittee; and
9. (e) Committeeon Tele com munications Standards. 2. Wo rkingGroups:
11. (a) Temporary EntryWor kingGroup;and
12. (b) Go vernmentProcurementWor kingG roup.

Implementation Of Decisi ons Adopted By The C om miss ion

str. 124The Parties shall implement decis ionsof theCom mission, referr ed to in Article 18.1.3(c ), accordingtotheir respec tive domestic l egislation and thefollowing procedures :

- (a) inthecaseofChile, by m eansofexecutive agreements, inconformity withArticle 50 Nº1,secondparagraph ofthePolitical Constitution oftheRepubl icofChile; and
- (b) in the case of Ko rea,in confo rmitywith Article 60.1 of the Constitution of the Republi c ofKorea.

The Secretariat

str. 124Forpurposes ofArti cle18.2, thecom petent natio nalorgansoftheParties are :

- (a) forChile, theGeneralDire ct orat e of I nt ernational Econom icAffairs of theMi nist ry ofForeignAffairs ,orits successor; and
- (b) forKorea,t he Multilater al Trade Bureau of t he Mi nistry of Foreign Affa irsand Trade, orits successor .

Co operati on

str. 124The Part iesshall atall timesendeavourtoagreeon theint erpre tation and application ofth is Agreement, and shallmak e ever y attem pt throughcooperation and consultations to arri ve at a mutually satisfactory resolu tion ofany matter that mightaffect it s operat ion.

Scope Of A pplicatio n

str. 124Exceptasoth erwisepr ovi ded inth isAg reement, thepr ovisions ofthis Chaptershall apply:

- (a) withrespect tot he avoid ance and sett lementofdispu t esbetweentheParties reg ardin g th e interpretation orappli cation ofthis Agreement;or
- (b) wh erever a Partyconsiders t hatan exi st ingorpropose d measureoftheother Partyis or would be inconsisten t with the obligations of th is Agreem ent or causes nullifica tion orimpairmentinth e senseofA nnex 19.2.

ChoiceOf Forum

str. 1241. Disputesregarding any matt eraris i ng under boththis A greementand theWTO Ag r eement, any agreement negot iat ed t hereun der , or any successor agreement,may be settled in the forum selected by thecomplain ingPart y. 2.

str. 125Once disputese ttlementproc edures have been ini t iat ed under A rticle 19. 6 or disput e settlement proceedings have been initiated undertheWTO Agreement,theforum selected shal l be usedtot he exclusion oftheother . 3. For purposesof t hisArtic le, dispute settl em entproceedings undertheWTO A greementare deemed tobe initiated upon a req uestfora panelby a Party .

Consulta tions

str. 1251. A Partymay requestinwri tingconsul tations withtheotherPartyrega rdingany exist ingor prop osed measure or any otherm atter that itconsiders m i ghtaffect theoperatio n and application of this Agreement. 2. The Partytha trequest sconsultations according toparagraph 1 shall indicate theprovis io ns of theAgreement that it considers r elev antand deliver thereques ttotheother Party. 3. Consultations on matter s regarding perishable agri cultura lgoods shal l commence within15 daysofthedateofdeliv eryoft he reque st.
4. The Partieshall:
5. (a) provideinfor mation to enablea full examinationof how theexi st ing or prop ose d measureorother ma tter mightaffectheoperat ionand application ofthis Agreemen t; and
6. (b) give confident ial tr eatment to any infor matio n exchanged in the course of consulta tions.

Go od Offices, Conciliat ionAnd Mediation

str. 1251. Good offices ,conciliat ionand mediation areprocedur esundertaken voluntarily iftheParties soagre e.
2. Proceedings inv olvi ng good of fi ces,conci liation and mediation, and in particul ar positions take n by th e Parties duringthese pr oceedings, shal lbe conf idential, and without prej udicetotherig hts ofei the rParty inany f urther pr oceedi ngs underthese pro cedures. 3. Good offices, conci l i ati on ormediation may be requested atany timeby any Party. They m ay beginatany timeand be ter minatedatany tim e.Once procedures forgood offices, conciliation or mediationare concludedwithoutan agreement between the Par ti es,the complainingPart y m ay request thees tablishment ofa panel.

RequestForAn A r bitral Panel 1. A Partymay reque stin w riting theestabli shment of an ar bitra lpanelifthem atter has not beenres olvedpur suanttoArticle 19.4, withi n:

str. 1262. (a) 45 daysofdeliv er y ofa request forconsul t ations;
3. (b) 30 days of deli very of a request forconsultations in mattersregarding perishabl e agri cultural goods;or
4. (c) such other perio d asthePartie smay agree. 2. A Partymay al so request inwriting thees tablishme ntofan arbitral panelwhere consulta tions have beenheldpursuan ttoA r ticle 8.12. 3. Upon deliver y oftherequest, an arb itral panelshall be establ is hed. 4. Unless otherwiseagreed by th e Parti es, th e panel shallbe establ is hed and perfo r m its functions inaccordance withthepr ovis io nsofthi sChapter.

Roster

str. 1261. The Partieshall establ ish, by mutualagreement, no later thansixmonths after theentryinto forceofthis Agreement a rost erofup to15 individuals, one- third of whom shall notbe national s of either Party,who are wil l ing and quali fiedto serveas panelist s.The roste r members shallbe appointed fora termofth reeyears, and will automatically be reappoi ntedf oran addi tio nalthree - year ter m, unles s either Partyobjects. 2. Rostermem ber sshall:
3. (a) have expertise orexperi ence i n law,i nt ernational trade, ot herm att erscoveredby this Ag reementortheresolu ti on ofdisput esarising underinternat ional tr ade agreements;
4. (b) be chosenstri ctl y on thebasi s ofobject ivity, reliabil ity and soundj udgment;
5. (c) be independent of, notbe affilia tedwithortakeinst ruct ionsf rom,ei ther Party ;and
6. (d) comply withtheCode ofConductsetoutinAnnex 19.7.

Q ualifi cation sOf Paneli sts

str. 1261. Allpanelists shal lmeet thequal if ications setoutinA rt icl e 19.7.2. 2. Individuals may notserv e as panel i sts fora dispute i n which the y have participated pursuant toArticle 19.5.

PanelSelection

str. 1261. The panelshall compriseth reemembers. 2. Each Partysha llselect one panelist withi n 15 days from thedeli very of therequest forthe establ ishmentofthepanel. 3. Within15 daysoft he sele ct ionof thepanelists underparagraph 2,th e Partieshall agreeon thechai rofthepanel. IfthePar ti esareunabletoagreeon thechair w ithin this period, thechairpers on oftheCommission shall se lect by lotthechai r of t he panelw ithi n fivedays ,from amon g theroster members who arenotnati onalsofeither Par ty. 4. Ifa Partyfails tose lect its panelis tw ithin theperiod i ndicated inparag raph2,thechairpe r son ofth e C ommission shall select by lotthepanelist withinfivedays,from among theroster members who arenationals oftha tPar ty. 5. Panelists shall normal lybe select ed from ther oster. 6. Ifa Partybel ieves that a panelis tisinviol at ionoftheCode ofConductsetoutinAnnex 19.7, thePartie s shall consultand iftheyagree, thepanelist shall be removed and a new panelist shall be selected inaccordance witht hisArtic le.

Model R ulesOf Proc edure

str. 1271. UnlesstheParties oth erwis e agree, thepanelshall conductits proce edin gs inaccordance with theMode lRulesofProceduresetouti n A nnex 19.10. 2. The Commission m ay amend w hen i t considers necessary the M odel Ru lesof Procedure ref erred toinparagr aph 1.

Informati on A nd Technic alAdvice

str. 127Upon request ofa Par ty ,oron its own initiat ive, thepanelmay seekinformation and tech nic al advicefro m any per son or body that i tdeem s appropria te. Any information and technical adviceso obtained shall be subm itted totheParties forcomments.

Initial Report

str. 1271. UnlesstheParties oth erwiseagree, thepanelshall baseits report on therelevant provis i ons of this Agreement,on thesubmissions and argumentsof theParties, and on any i nformation befor e it, pursuant toA rticle 19.11. 2. Unless thePart iesother wise agree, thepanelshall, within90 days after thelast panelist is selected, present tothePar ties an init ial report cont aini ng:
3. (a) findings of fact, i ncluding any findings purs uanttoa request underRule 8 of Anne x 19.10;
4. (b) its determinatio n as towhetherthemeasureatissue isorw ouldbe inco nsistent wit h th e obligations ofthis Ag re em entorcausenul li fi cation or impairmentinthesenseof Annex 19. 2,orany ot herdete rminat ionrequested int he term s ofreference; and
5. (c) its rec ommendat ions, if any,f orresoluti on ofthedi spute.

str. 1283. Panelists ma y fur nishseparate opinions on matters notunanimouslyagre ed. 4. The Parties may submitwrit t en com ments on the ini t ialreportwith in 14 days of its presentati on. 5. Incaset hatsuchwri tt en comm entsby theParties arereceived asprovided f orinparagr aph 4, thepanel, on its own in itia tiv e or attherequest of a Party, m ay reconsi deri t s r eportand m ake any further examination t hatit consider sappropr iate after consider ingsuchwritten com ments.

Final R eport

str. 1281. The panelsha llpresenta f inalreportt o t he Part ies, including any sep arateopinionson matters notunanimouslyagr eed,wit hin30 daysofpre sent at ionofthei nitia lrepo rt, unless theParties otherwise agree. 2. No panelm ay, ei therin it s initial repor t or i ts final report, di sclosewhich paneli stsare assoc iated wit h them ajo rity orm inori tyoftheopinions. 3. The final repo rtofthepanelshall be made publ i cl y available within 15 daysofits delivery t o thePartie s.

I mplemen tation Of Fina lReport

str. 1281. The final report of a panelshall be binding on thePar ties and shall notbe subje cttoappeal. UnlesstheParti esdeci de other wise,t hey shal limplementthedecisi on containe d inthefinal report of thepanelinthemanner and with inthet i m e- frame that it orders. 2. Notwithstand ingpar agraph1,where t he f inal report ofthepanelst ates t hata measureisnotin compliancewiththis Ag reement ,oriscausing nul li fi cation orimpairmentinthesenseofAnne x 19.2, ther es pondingParty ,whereverpossib le, shal labstain from exec uting them easu reorshall abrogate it.

Non - Imple mentation -Suspension O fBenefit s

str. 129The complainingPartyma y suspendtheapplicat ionof benef it s of equivalent effect to the Part y comp lained agai nsti fthepanelresolves:

(a) thata measure is inconsist ent with t he obligations of thisA greement and the responding Partydoes not implementthefinal report within30 days f ol lowingthe expiration oft he time - frameestab lis hed insucha report; or

(b) that a measure causesnullif ication orimpairmentint he senseofAnnex 19.2and the Parties do notreacha mutuallysati sfactory agreementon t he di sputewithin30 days foll owing th e expiration ofthetim e- fr am e established inthefinal repor t.

2. The suspensionofbenefit sshall l astunti lt he responding Party implementsthedecision ofthe panel 's final reportor unt ilth e Parties reach a mutuallysati sfactory agreement on the dispute, dependingon thecase. 3. Inconsidering what benefits t o suspendpursu anttoparagraph 1:

- (a) thecomplaini ng Part y shoul d first seektosuspendbenefit s i n thesame sector (s)as t hat affe cted by th e measure or othermatter t hat the panel has found to be in consis ten t with the obligati ons derivedof t his A greement or to have caus ed nullifica tion orimpairmentinth e senseofA nnex 19.2; and
- (b) ifthecomplai ning Part y consi der s thati t isnot practi cableor effective to susp end benef itsin the same sector( s),it m ay suspend benefits in othe r sect ors.The communicationinwhich itannouncessuch a deci sionshal lindicate t he reasons on which it isbased. 4. Upon written r equestof t he Partyconcerned, t he or igina lpanelshal ldetermine whether the leve lofbenefits suspendedby t he complaining Par tyi sexcessiv e pursuant toparag raph1.I fthepanel cannot be establish ed with itsorig inalmembers, the proceedingsetout in Article 19.9 shallbe applied. 5. The panelsha llpr esentits determination within60 days from thereques tmade pursuant to paragraph 4,orifa panelcannotbe establishe d withit s original m em bers, from thedateon wh i ch the las tpanelis tisselected .The ruling ofthepanelshall be fin aland binding. Itshall be del iv eredt o the Parties and be made publi clyavai lable.

Art icl e 19. 16

str. 129Interpret ation O fThe Ag re ement B ef oreJudicial And Adm inist r ative Proceedi ngs

1. Ifan is sue of interp retation orappli cation of thi s Agreement arises, inany domesticju dicial oradministr ative proce edin g ofa Par ty, which that Par tyconsiders would meritits interv ent i on,orif a judicial oradminis trative body r equest s theviews ofa Partyinthis regard, that Party shall notify the otherParty .The Comm ission shall endeavourtoagreeon an appropriate response asexpeditiously as possible. 2. The Partyinwhose territo ry thejudi cial or admini strativ e body islocated shall subm itany agr eed i nterpretation ofth e Commi ssion tosucha body,i n accordance w ith therule s ofthat forum. 3. Ifth e Commission does notrea ch an agreement, any Partymay submitits ow n vi ew s tothe judicial oradministrativ e body inaccor dancewiththerules ofthat forum.

Private Rights

str. 130Neit her Partyma y prov idef or a rig ht of act ion forprivate par ties under its domesticlaw agai nstt he otherPartyon the gr ound thata measure of the otherPar ty i s inconsistent w iththis Agreement.

Alterna tive DisputeResolu tion

str. 1301. Each Partyshall, to the maximum extentpossible, encourage and fac il i t at e the use of ar bitr ationprocee ding and othermeans of al terna tivedis put e resolut ion fo r the settlem ent of inte rna tional commercialdis put esbetweenprivate parties inthefree t radearea. 2. To thisend, each Par ty shallpr ovide appr opriate proceduresto ensure observanceof agr eementstoarbitrat e and f or t he r ecognition and enforcement of arbitral awards insuch disputes underparagraph 1. 3. A Partyshallbe deemed tobe incompli ance with paragr aph 2 i f itisa par tyto and isin compliancewiththe1958 Unit ed Natio nsConventionon theRecognition and Enforc em entofForeign Arbitral Awards.

Nullifica tion Or Impairment

str. 1301. A Partymay have r ecour se to t he di spute settlement procedures under th isC hapterifthe application of any measure t hatisnot inconsistent with t hisAgreem ent,results in nullification or impairmentof any benefit thati s r easonablyexpectedto accruet o i t under any of the following prov isi onscontained in :
2. (a) PartII;
3. (b) Chapter 11;and
4. (c) Chapter 15. 2. With res pecttoany m easuresubject toan exception underArti cl e 20.1 ,theParties may not inv oke:
6. (a) subparagraph s 1(a)and ( c), totheextent that thebenefi tari sesfrom any crossbo rder tr ade inservic esprov ision ofPar tII; or
7. (b) subparagraph 1(b ).

Defin itions

str. 131;

proceeding ,unless other wisespecif ied, means a panelproceeding underChapter19;and st aff ,inrespect ofa m em ber, means personsunderthedirection and cont rolof t he m ember, other thanassistants.

Section I:Responsibiliti esTo The Process

str. 1312. Every candidate and m ember shall avoidimpr opriety and theappearance of impropr i ety ,be independent and imparti al, avoi d dir ectand indirect conflicts ofinterests and observ e hig h standards of conduct so thatthe integr ityand impart iality of the disput e set tlementprocessar e preserved. Former members shal lcomply wit h theoblig atio ns establ i shed inSectio ns V and VI of this Cod e of Conduct.

Section I I:Disclosure Obligat ions

str. 1313. Priort o confir mati on of hisor herselection as a member of thepanelunderArticle 19.9, a candi dat e shalldiscl ose any intere st,rela t ionshipor mattert hat is like ly to affecthi s or her independence or imparti ality or that might reasonably create an appearance of impropriety orbiasin theproceed ing. To this end,a candi dateshall make all reasonablefforts tobecome awareofany such inte rests, rel ationships and m at ters. 4. Once selected, a member shall continue to make allreas onableefforts tobecome aware of any interests, relation ship s and m attersreferr ed t o in Rule 3 and shalldis cl ose th em by communi cating them inwriting totheComm ission fo r considerati on by theParties. The obligation to disclose isa continuing duty ,which requi resa memb ert o disclose any such interes ts , relationships and matters that may ari seduring any st age oftheproceeding.

Section III :Perform anceOf Duti esBy Candidat esA nd Members

str. 1315. A candidat e who acceptsa selec t ion as a m ember shall be available to perfor m, and shall perform, a member'sduties thoro ughlyand expeditiously throughout t he course oftheproceeding. 6. A me mber shall carr y outall duties fai rlyand diligent ly. 7. A me mber shall com plywithth isCode ofConduct. 8. A member sha llnot deny ot her members theopportunity t o parti cipate inall aspects of the proc eeding . 9. A me mber shallconsi der only those i ssues ra ised in the proceedingand necessaryt o rendering a decision and shall notdelega tethedutytodeci de toany other person. 10.

str. 132A member shalltak e allreas onableste ps t o ensur e thatt he member 'sassist ant and staff comply withSection sI,IIand VI ofth isCode ofC onduct. 11. A me mber shall notengage in exparte cont acts concerning t he pro ceeding . 12. A candidateor mem ber shal l not communicate mattersconcerni ng actualor potential vio lations ofthis Code ofC onductunl essthecom munication istotheC ommission orisnecessa ryto ascert ainwh ether that candida teormember hasviolat ed ormay violate t hisCode.

Section I V :Independence And Impartial ity Of Mem bers

str. 13213. A me mber shall be i ndependentand impart ial. A member shall actina f ai r ma nnerand shall avoidcreating an appearan ce ofimpropr iety orbias. 14. A member shall notbe influenced by se l f - intere st, out si de pressur e,pol it ica l considerations, public clamour, loyalty t o a Party orfear ofcri tici sm. 15. A me mber shall not,dir ectly or indirectly, incurany obligat ion or accep t any benefit t hat wou ld in any way inter fere, or appearto interfere ,w iththeproperper formance of themember's duties. 16. A member shall notuse hisor herposition on t he paneltoadvanceany per sonalor priv ate inte rests. A member shall avoid actions thatmay creat e theimpress ion thatothers arein a special position toinfluence themember .A member shal lm ake everyeffortoprevent or discourage others fr om representing themselv es asbeinginsucha positi on. 17. A member shall notallowpas tor existing financ ial ,busi ness, professional, familyor social rela tionship sorresponsibilitie st o in fl uencethemember'sconductorjudgement. 18. A me mber shall avoidenteri ng intoany rel ationship, oracquiring any financ ial i nt er es t, that is likely to affect the m ember' s i mpa r tia lityor thatmight reasonablycreat e an appeara nce of impropriety orbias .

Section V :DutiesInCertain Sit uation s

str. 13219. A member or f or mer m ember shall avoidactions thatmay create the appear ance thatthe member was biasedi n carry ingoutthem ember'sduti esorw ouldbenefit from t he decisio n orruling ofthepanel.

Section V I:MaintenanceOf Confident ial ity

str. 13220. A member orfor mer mem bershall notatany tim e disclose oruseany non- public infor mation conce rning the pro ceedin g or acqui red during the proceedingexcept for the purposes of the proc eedingand shall not, i n any case, disclose oruseany su chinformati on togainpersonal advantage oradvantage forothers ortoaffect adversely theinterest ofot her s people. 21. A me mber shall notdi sclos e a panelruling prior toits publ icat ion. 22. A member or f ormer member sha llnot atany timedisclose t he delibera tio ns of a panel, or any member'sview.

Section V II:Responsibilities Of Assist antsAnd Staff

str. 13323. Sections I, IIand VI ofthis C ode ofConduct applyalsotoassistant sand staff.

Applicati on

str. 1331. These Rules are est ablishedunder Arti cle 19.10 and shallappl y to dispu te settlement proc eeding s underC hapter 19 unless th e Parties otherwise agree.

Definitions

Terms Of Refer enceF orPanels

WrittenSubmissions An d OtherDocument s

str. 1348. The Partiesha ll deliv ert he or iginal and asmany copies astheSecretariat requires and inany eventno less thanfiv e copiesof their respec tivewritt en submis si ons t o thei rrespective Secretariats which,in tu rn,shall retain a copy and forwardtheorigina l and theremainin g copiesby themost expedit iousmeans practicabl e totheresponsible Secretariat. The res ponsible Secre tariat shall deliver thesubmissions by themos texpeditio usmeans practi cabletotheothe rPartyand thepanel . 9. A complaini ng Partyshal ldeliver its initial written submission toit s Secret ariat no la t erthan 10 daysafter t he dateon which thelast paneli stisdesi gnated. The responding Partyshall deliv erits written counter - s ubm ission t o th e respo nsible Secretariat no later than20 days upon receipt of the initial w ritten submission ofth e com plaining Par ty. 10. A request, notic e or ot her document related to thepanelproceeding thatisnot coveredby Rule 8 or9,thePar tysha ll deliv ercopiesofthedocum enttobothSecretar i at s and tot he other Party by f acsimile orother means ofelectr onictransm issi on. 11. A Party may cor rectm inor er rorsof a cler i cal naturei n any request, notice, written submiss ionor otherdocument rel atedtothepanelproceeding by delivering a new document clearly indicating th e changes. 12. A Partythatdeliv ers any reque st,not i ce, written subm issionor othe r document to its Secr eta ri atshall, totheextent pr acticable, alsodeli vera copy of t he docum entinelectronic form t o that Secre tariat. 13. Any delivery t o a Secreta riat under theseRules shal l be made duringthenormal business hoursofthat Secretariat . 14. I f thelas tday fordeliv eryofa document toa Secretaria tfal lson a legal holiday obser ved by that Secretariat oron any other day on which theoffi cesofthat Secretar ia tareclosed by orderofthe government or by fo rce majeure,the document may be del iveredto thatSecretariat on the next busin essday.

Ope ration O fPanels

str. 13415. The chair of t he panelshall pr esideatall of it s meeti ngs.A panelmay deleg atetothechair authority tomake adm inistrativ e and procedural decisi ons. 16. Except as otherwi se pr ovided in theseRules,the panelmay conductitsbusinessby any means,including by t el ephone,facsi miletransm issi on and computerlinks. 17.

str. 135Only panelist s may takepar t in the deliberat ionsof the panel , but t he panelmay permit assist ant s,interpreter sortranslato rst o be present during suchdeliberations . 18. Wh erea procedur alques tio n arises that isnotaddressed by these Rules, a panelmay adoptan appr opri ateprocedu ret hatiscons isten twiththis Agreement. 19. Ifa panelist di es,withdrawsorisremoved from thepanel, a replacement shal lbe sel ectedas expedit ious lyasposs ible inacco rdancewiththeprocedures todesignate panelists. 20. The ti me - period appl icable tothepanelproceeding shall be suspe nded fora period that begins on thedateon w hichthepanelist dies, withdraw s ori s removed fr om thepaneland endson thedat e on which thereplacement isse lected. 21. A panelmay, i n consulta tionwiththeParties, m odifyany time - period applicab l e i n thepanel proc eeding and make oth er pr oceduralor administr ativeadjus tments as ma y be required in the proc eeding ,such asincase s where a panel i stisreplaced orwhere theParti esarerequired tor eplyin writing tothequestion sofa panel .

Hearings

str. 13522. The chair shall fi x t he dat e and timeof thehear i ng inconsultation withthePart i es,theother members of thepaneland theresponsi bleSecretariat. The responsibl e Secretariat shall notify the Parties inwriti ng oft he date, tim e and location oft he hearing. 23. The hearing shall be heldint he capi tal oftheParty complainedagai nst. 24. The panelmay conveneaddi ti onalhearings ifthePar ti essoagree. 25. Allpanelists shal lbe present atheari ngs. 26. The following persons may attend a hearing:

(a) repres entatives ofthePartie s;

(b) advis ersof thePartie s,pro vide d that theydo notaddr essthepaneland theyor their employers, partners, business ass oci ates orfamily members do nothavea financial or personal in tere stinthepr oceeding ;

(c) Secretariat personnel, int er pr et ers , translators and courtrepor ters(designated not e takers); and

(d) panelists 'assist ants. 27. No later thanfi ve days beforethedateofa hearing, eachPartyshall deliver totheother Party and theresp onsible Secr eta ria ta list of thenames of t hose person s w ho wil lmake oralargumentsor presentati ons atthehear ingon behal f of that Partyand of otherrepr esentatives oradvisers who will attend thehearing. 28. The hearingshallbe conductedby the panelin the fol lowing m anner,ensur i ng tha t the complaining Party and t he Part y complainedagainst areafforded wit h equaltime:

(a) Argument:

(i) argumentofth e complainin g Par ty. (ii ) argumentofth e Party com plained against. (b) Replyand Counter - R eply :

(i) reply ofthecomplaini ng Party . (ii ) counter - reply oft he Party com plained against. 29. The panelmay di rect questions toany Party atany timeduri ng a hearing.

str. 13630. The responsi bleSecretariat shal l ar rangefora transcri ptofeachhearin g tobe pr epar ed and shall, as soon as possible afte ritispre pared, deliver a copy of thetransc r ipt tothePar ti es,theother Secr eta ri atand thepanel.

Supplement ary Wr itten Submissions

str. 13631. The panelmay atany tim e dur inga proceeding addres s ques t ionsi n writing toone orbothof thePart ies. The panelshall del iver thewritten questions tothePar tyorParties towhom thequestions ar e addre ssedthroug h ther espo nsible Secr etariat, which,i n turn, shall provid e forthedelivery of copie s of th e questions by themost expedit iousmeans practicable to theotherSecreta ria t and the other Party. 32. The Partytowhom thepaneladdresses w ritten quest ionsshall del ivera copy of any wri tten replyto itsSecretariat which,i n t urn , shal l providefordeliv ery of thatsubmissionby t he most expedit iousmeans pra cti cableto the otherSecretar ia t and the panel.The ot her Secre t ar ia t shall prov idefo r delivery oft hatsubm issi on by themost expeditious means practicable tot he otherParty. The ot herPartyshall be giventheoppor tunity toprovidewritten comments on therep lywithinfive daysafter thedateofdeliver y. 33. Within 10 days aft er the dateof the hearing, each Partymay deliver to itsSecretariat a suppl ementaryw ritten submiss i on respondi ng toany matter that aroseduring thehearing.

Burden Of ProofRegardingInconsistent Measures And E xceptions

str. 13634. The Partyassert ingth ata m easure oftheother Partyisin consis tent w ith theprov is i ons ofthis Agreement shall have t he bur den ofestabl i shingsuchinc onsistency. 35. The Partyasserti ng that a measureissubject toan except ionundert hi s Agreement shall have theburdenofestablishing that theexception applies.

Avail abil ity O fInformatio n

str. 13636. The Partieshall m aintai n t he confiden tial ityofthepanel's hear ings, delib era tions and initial report, and allwritten subm issions t o,and com municat ionswith,t he panel, in acco rdan ce with the following procedures :
2. (a) A Partyor,subject toits instructions, theParty's Secret ariat, may make available t o th e public atany timet hatPar ty 'swritten submissi ons and thoseof theotherParty. Beforesuchdocuments aremade avai lable tothepublic any information designat ed forconfiden tia ltreatment by a Part y pursuant tosubparagraph (d)shall be removed;

(b) A Partyor,subj ecttoits instru ctions, theParty' s Secretar i at , m ay make thehearing tr anscri ptavailable t o thepubli c 15 days after thefi nalr eportof thepanelismade publicpursuantto Article 19.13.3.

str. 137B eforet he t r anscript ismade avail abl e to the public, any i nfor mationdesig nat ed fo r confidential t reatment by a Par typur suantto subparagraph (d)shall be re mov ed;

(c) Where inform at ionhasbeen r emoved from a document pursuant tosubparagraph (a ) or(b), thedocument sha ll indicate clearl y w heresuc h i nformation hasbeen removed; (d) To theextent itconsiders stri ctly necess arytoprotect personal pri vacy or toaddress essentia l confidentiality concerns,a Party may designatespecific information in cludedinits written submissions, or that ithas presented inthepanelhearing, for confide ntial treatment;

- (e) A Partymay di sclo setootherpersonssuchinformation inconnection withthepanel proceedings asit consi der s necessar y f orthepreparat ionofits case, butit shall ensure th atthosepersons maintai n theconfidential i t y ofany suchinformati on;
- (f) A Partyshal ltrea tasconfidentia ltheinitial repor tand information submitted by the ot her Partyto the panel thatth e Part y has designat ed as confidential pursuan t to subparagraph (d);
- (g) The responsibl e Secretariat shall takesuch reasonable stepsasarenecessary toensure th at experts, interpreters, t ranslator s,courtreporters (designated note takers ) and ot herindividuals retained by theSecretariat maintain theconfidentiali t y ofthepanel proceedings ;and
- (h) Except as pr ovide d under par agraph s (a)and (b),t he Secret ariat personnelshal l maintai n theconfidential ity ofthepanelproceedin gs.

Ex parteC ontacts

str. 13737. The panelshall notmeet orcontact a Party intheabsenceoftheother Party. 38. No panelist may discuss any aspectof t he subject matterof theproceeding witha Partyor withtheParti esinth e abse nce ofth e ot herpanelist s.

Official Language

str. 13739. Writtensubmissions, oralar guments or presentations attheheari ng,initia l and final panel reports, as wellasall othe rwritte n ororalcommunicationsbetwee n thePar ties and th e panel, r elated topanelpr oceedings, shal lbe conducte d i n English.

ComputationO fTime

str. 13740. Wh ereanythingunder thisAgreement or theseRules ist o be done,or thepanel requ ires anythingtobe done,withi n a number of days after or beforea specified dateorevent, th e specified dateorthedateon which thespecified eventoccur s shal lnotbe i ncl uded incalculating that num ber ofdays. 41. Wh ere, by reas on of theoperati on of Rule 14,a Partyrec eivesa document on a dateother thanthedateon which th e same document isrecei ved by th e otherParty, any periodof time the calculat ionof which i s dependenton such recei ptsha llbe calculated from thedateof receipt of the las tsuchdocument.

SuspensionO fBenefi tsPanels

str. 13742. TheseRulesshall appl y toa panelestabl ishedunderArticle 19.15exceptthat :
2. (a) thePartythatrequest s t he establ ishmentof t he panelshal l del i ver its initial wri tte n submissio n toits Secretariat within 10 daysafter thedateon w hichthel astpaneli stis designat ed;
3. (b) therespondingPartyshall del iveritswritten counter - submissionto itsSecreta ri at within15 days upon r eceiptof t he init ialwrit ten submissionof the com plaining Party;
4. (c) the panel shallfixt he t ime limitfordelivering any further w ri t t en submission s, in cludingrebuttal writtensubmissions, so as to provide each Party w ith t he opportunity tomake an equalnumber ofwritten submissions subject tothet ime limi ts forpanelpro ceedings setoutint hisAgreement and thes e R ules; and

- (d) unles s thePar ties disagree, t he panelmay decidenottoconvenea hearin g.

Responsi bleSecretariat

str. 13843. The responsib leSecretar iat shall:
2. (a) provide admini str ativ e assis tancetothepanel;
3. (b) provide administrativ e assistanceto exper ts, panel i sts and t heir assi sta nts , in ter preter s,trans lator s,courtreport er s (des ignated not e t akers) or otheri ndividuals th atit re tains ina panelpro ceed ing ;
4. (c) ma ke available t o thepaneli sts, upon confirmation oft heir appointment, copies ofthis Ag reementand other documentsre levant totheproceedings ofthepanel, suchast he Uniform Regulations and these R ules;
5. (d) retain indefinitel y a copy oft he completerecord oft he panelproceeding; and
6. (e) compensatei n accordance withRules44,45 and 46.

Remuneration An d Paymen tOf Expenses

str. 13844. The responsi bl e Secr et ari atshall est abl ishtheamountsofremuneration and expensest hatwill be paidtothepanelis ts, th ei r assist ants ,courtreporters (designated notetakers) or otherindiv iduals that it retains ina panelpr oceedi ng upon agreementby bot h Parties. 45. The remuner at ion of th e am ountsestablished underRule 44 shall be born e equallyby t he Parties unless otherwis e agreedby them. 46. Each panelist orothe rpersonswho participate inthepanelproceeding shal lkeepa recor d and render a fina laccountofth e per son'st ime and expenses, and thepanelshal lkeep a reco rdand render a fin alaccount ofall gener alexpenses.

Maintenance Of Roste rs

str. 13847. The Parties shallinf or m each Secretariat of t he com posi tionof theroster established under Article 19.7. The Part iesshall promptlyinf orm thei rcounterpart Secret ariat of any changesmade t o ther oster.

Gen era lExceptions

str. 1391. Article XX of GAT T and it s interpretative notesor any equiva lent prov ision of a successor agr eement towhich bothParties arepartyareincor porated into and m ade part ofthis Ag re ement,for purp osesof :
2. (a) PartII,exceptto t he extentth at a provi sion of thatPar t appl i es to services or in vestment; and
3. (b) Chapter 15,excepttotheext entthat any ofits provisi onsapplies toservices. 2. Subparagraphs (a), (b ) and ( c)of Article XIV of t he G ATS ar e i ncorporated intoand made part ofthis Agreement,forpur posesof:
5. (a) PartII, totheextent that a prov ision ofthat Part appl i estoservices;
6. (b) Chapter 11;
7. (c) Chapter 12;and
8. (d) Chapter 15,t o theextent th atany ofits pr ovisions appl i estoserv ices.

Nation alSecurity

str. 1391. Nothinginth isAg reementshall be construed:
2. (a) to require a Par ty to furn ishany inform ationthe di sclosur e of which itconsider s contrary t o it sessential secur ity i nter ests;

(b) to preventa Part y from t aking any actions w hi ch itconsiders neces sary for the protection ofi tsessent ia lsecur it y i nterests:

(i) relating tothetr affic inar ms, ammunitionand implementsofwar and t o such traffic inothergoods and materia lsor relat ingtothesupplyof services as car rie d on,dire ctly ori ndirectl y,forthepurposeofsupplyi ng orprovisioning a military establis hment;

(ii ) tak en intimeofwar orot heremergencyininternat ional relations; or

(iii ) relating tofi ss ionabl e and f usio nablemateri al s or thematerials from which theyarederived; or

(c) topreve nt a Part y fr om t aking any action in pursuanceof its obligation s underthe Unit ed N ations Charter f orthemaintenance ofinternat ional peaceand securi ty. 2. The Commission sha llbe i nformed to thefullest ext ent possi bleof measurestakenunder subparagraphs 1(b)and (c )and ofthe ir termination. 1.

str. 140Forpurposes oft hisCh apter:

tax convention means a conventi on for the avoidance of double taxationor oth er inte rna tional taxation agreementorarra ngem ent; and tax esand taxation measures do notinclude a "cus tom dut y" asdef inedi n A rticle 3.1. 2. Exceptassetoutinthis Article, nothing inthis A greementshall applytotaxation m easures . 3. Nothinginthis Agreementshall affect therights and obliga t ionsofeith erPartyunderany tax convention .Intheeventofany inconsistency between this Agreement and any suchconventio n,t hat convention shall prev ai ltotheexten toft he inconsist ency. 4. Notwithstand ingpar agraph3,Art icle 3.3and othe rpr ovisions ofthi sAgreem entnecessa ryto giveeffect tothatArt icle shall appl y totaxation mea sur es tothesame extent as does A rt i cleIII of GATT.

Bal anceOf Payments

str. 1401. Wh erea Partyisinser io us balanceof payments and ext ernal financial difficult ies, or under threat thereof, itmay adoptor maintai n restrict ivemeasureswith regardto tradei n goods and in serv icesand with reg ar d to paym entsand capital moveme nts,includi ng th ose related to direct inv estmen t.
2. The Partieshall endeavourtoavoidtheapplication oftherest ri ctive measuresrefe rredtoi n paragraph 1. 3. Any restricti ve measure adopt ed ormaintaine d underthis Article shal lbe non- discriminatory and oflimited durati on and shall notgo beyond w hatisnecessa rytoremedy thebalanceofpayments and external financia lsi tu at ion.They sha l l be in accordancewit h thecondi tions est ablis hed in the WTO A greementand consistent wit h theArticles ofAgreementoftheInternational Monetary Fund, asapplicable. 4. The Partymaintai ningor havi ng adoptedrestr ictive measures, or any changest her eto ,shall promptlynotify them to th e otherPartyand present, as soon as possible, a time schedulefo r their removal. 5. The Partyappl yingre str ictive measuresshall consult promptlywit hi n th e Commission.Such consu ltati onsshall assess thebalance ofpaymentssitua ti on ofthePartyconcerne d and therestrictions adoptedormaintained underthi sArticle, taking into account, inter alia ,suchfactors as:
6. (a) thenature and ext entofthebal anceofpaymentsand externa lfinanc ial diff i cult ie s;
7. (b) theexternal economicand tr adin g envir onment oftheconsul ti ng Party; and
8. (c) alternative corr ectiv e measureswh ichmay be avail able. 6. The consu ltation s sha ll address thecom pliance ofany restrictive m easu reswithparag raph s 3 and 4.A ll f indings ofsta tist ical and ot herfacts pr esented by theInternat ional Monetary Fund rel ating

Taxation

str. 141tofore ignexchange, m onetary rese rv es and balanc e of payments,sha llbe acce pted, and conclusions shall be basedon theasses sment by theFund of thebalanceof payments and theexternal financial situat ionoftheconsu lting Par ty .

Annexes,AppendicesAn d Notes

A mendm ents

str. 1411. The Parties may agreeon any modificat ionoforaddit iontothi s A greement . 2. Wh en so agr eed,and approv ed inaccordance w ith thelegal proc eduresofeach Party, sucha mod ifica tion oraddition underpar agraph1 shal lconsti tut e an integral par tofthis Ag reement.

EntryIntoForce

str. 141This A greement shall ente r i nto force30 days after an exchange of wri t te n notifications, cert ify ingthecomplet ionoft he necess arylegal procedures ofeachParty.

Terminat ionO fThe Bila teral Inv estmentTreaty

Work Program On Financia lServ ices

str. 141Unlessoth erwiseagr eed by t he Par ties, t he authori ties responsible forf inancia lserv i ceswill meet fouryearsafter theent ryintofor ce of this Agreem ent, todiscuss theviab ility and convenience ofincorporating financial serv ices int o thi sAgreement. Articl e 21.6

str. 142Duration And Termination

ThisAgreement shall have an indefinite duration. A Partymay terminate theAg reementon sixmonths'prior writ tennotice toth e other Par ty.

Articl e 21.7

str. 142A ut hentic T exts

1. The K orean, Spanishand English t extsofthis Agreem entareequally authentic. Intheevent ofdiv ergence, theEnglishtext shall pr evai l . 2. At the latest , upon t he ent ry int o forceof the Agreement, the Parties agree to add, by exchangeofnotes, theEngli sh version ofAppendix 1,Sect ionB ofAnnex 3.4asan integ ralpartof this Agreement. IN W ITNESS WHER EOF, t he undersigned, being duly author ized by t heirrespectiv e Governmen ts, havesi gned this Agreement. DONE inSeoul, on t he fi fteen thday ofFebruaryof2003,induplicate, intheKo rean, Spanis h and English languages. FOR THE GOVERNMENT OF FO R TH E GOVERNMENT OF THE REPUBL IC OF KOREA THE REPU BLIC OF CHILE