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

str. 1FREE TRADE AGREEMENT BETWEEN THE REPUBLICOF TURKEY AND THE REPUBLICOF CHILE

str. 1The Republic of Turkey and the Republic of Chile (hereinafter referred to as “"the

DESIROUs to develop and strengthen friendly relations, especially in the fields of economic co-operation and trade, with an aim to contribute to the progress of

HAVING regard to the experience gained from the co-operation developed between the Parties as well as between them and their main trading partners;

RESOLVED to lay down for this purpose provisions aimed at the progressive abolition of the obstacles to trade between the Parties in accordance with the? provisions of these instruments, in particular those concerning the establishment of. free trade areas;

DECLARING their readiness to undertake activities with a view to promoting harmonious development of their trade as well as to expanding and diversifying their mutual co-operation in the fields of joint interest, thus creating a framework and supportive environment based on equality, non discrimination, and a balance of rights and obligations;

RESOLVED to contribute to the strengthening and reinforcement of the multilateral trading system as established through the World Trade Organization (WTO);

DESIROUs to'develop their relations in the field of sustainable development and environmental protection and conservation, and to improve working conditions and living standards in their respective countries and protect, enhance and enforce the fundamental worker's rights;

HAVE AGREED as follows:

ARTICLE1 Establishment of a Free Trade Area

str. 2The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994 (hereinafter referred to as "GATT 1994"), hereby establish a free trade area.

The objectives of this Agreement are:

str. 2- a) to increase and enhance the economic cooperation between the Parties and raise the living standards of the people of the two countries;
- b) to promote the expansion of trade through the harmonious development of the economic relations between the Parties;
- c) to gradually eliminate difficulties and restrictions on trade in goods;
- d) to contribute by the removal of barriers to trade, to the harmonious development and expansion of world trade; and

Relation to Other International Agreements

str. 2The Parties confirm their rights and obligations under the Marrakesh Agreement establishing the World Trade Organization (hereinafter referred to as "the WTO Agreement") and the other agreements negotiated thereunder to which they are a party, and under any other international agreement to which they are a party.

ARTICLE4 Customs Unions and Free Trade Areas

str. 31. Nothing in this Agreement shall preclude the maintenance or establishment of customs unions, free trade areas or other arrangements between either of the Parties and third countries, insofar as they do not alter the rights and
2. At the request of a Party, consultations between them shall take place within the Joint Committee concerning agreements establishing or adjusting customs unions or free trade areas and, where required, on other major issues related to the Parties' respective trade policies with third countries.

ARTICLE 5 Definitions of General Application

CHAPTERI COMMONPROVISIONS

ARTICLE 6 National Treatment

str. 4Each Party shall accord National Treatment to the goods of the other Party in accordance with Article III of the GATT 1994, including its interpretative notes; and to this end Article III of GATT 1994, and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.

ARTICLE 7 Classification and Valuation of Goods

str. 41. The classification of goods in trade between the Parties shall be that set out in each Party's respective tariff nomenclature in conformity with the Harmonized Commodity Description and Coding System (hereinafter referred to as "the Harmonized System" or "HS"). 2. For the purposes of determining the customs value of goods traded between the Parties, provisions of Part I of the Agreement on Implementation of Article VII of the GATT 1994, as may be amended, shall apply mutatis mutandis.

ARTICLE8 Customs Duty

str. 4A customs duty includes any duty or charge of any kind imposed in connection with the importation or exportation of a good, including any form of surtax or surcharge in connection with such importation or exportation, but does not include any:

- b) antidumping or countervailing duties applied consistently with Article 34; and
- c) fees or other charges imposed consistently with Article 14.

ARTICLE9 Basic Duties

str. 41. For each product, the basic duty to which successive reductions set out in this Agreement are to be applied shall be the Most Favored Nation (MFN) duty that was in force in the Parties on the date of entry into force of this Agreement. 2.

str. 5an erga omnes basis, in particular, reductions resulting from the tariff negotiations in the WTO, such reduced duties shall replace the basic duties referred to in paragraph 1 as from that date when such reductions are applied. 3. The Parties shall communicate to each other their respective basic duties.

ARTICLE 10

Rules of Origin and Cooperation between the Customs Administrations

str. 51. Annex V to this Agreement lays down the rules of origin and related methods of administrative co-operation. 2. For the purposes of the effective implementation and operation of Annex V, the Parties hereby establish a Sub-Committee on Customs and Rules of Origin. The functions of the Sub-Committee on Customs and Rules of Origin shall be:
3. a)reviewing the implementation and operation of Annex V;
- b) reporting its findings to the Joint Committee;
- c) identifying areas, relating to Annex V to be improved for facilitating trade in goods between the Parties; and
- d) carrying out other functions as may be delegated by the Joint Committee in accordance with Article 54. 3. The Sub-Committee on Customs and Rules of Origin shall meet as may be agreed by the Parties. 4. The Sub-Committee on Customs and Rules of Origin shall be composed by representatives from the competent authorities of the Parties. Other Governmental Authorities may. be invited to the Sub-Committee on'Customs and Rules of Origin meetings whenever it is deemed necessary. 5. The terms of reference of the Sub-Committee on Customs and Rules of Origin shall be determined in the first meeting of the Joint Committee.

ARTICLE 11 Customs Duties of a Fiscal Nature

str. 5The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.

ARTICLE 12

Customs Duties on Exports and Charges Having Equivalent Effect

str. 61. Customs duties and charges having equivalent effect on exports shall be abolished between the Parties upon the entry into force of this Agreement. 2. From the date of entry into force of this Agreement, no new customs duties on exports or charges having equivalent effect shall be introduced in trade between. the Parties.

ARTICLE 13 Import and Export Restrictions

str. 6Except as otherwise provided in this Agreement, neither Party may adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of the GATT 1994 and its interpretative notes; and to this end, Article XI of the GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.

ARTICLE 14 Fees and Other Charges

str. 6Each Party shall ensure, in accordance with Article VIlI of the GATT 1994 and its interpretative notes, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charges, applied consistently with Article III paragraph 2 of the GATT 1994, and antidumping and countervailing duties) imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.

ARTICLE15 Re-export and Serious Shortage

str. 61. Where compliance with the provisions of Article 13 leads to:
2.

str. 7a) re-export towards a third country against which the exporting Party to this
- b) a serious shortage, or threat thereof, of a product essential to the exporting Party;or
- c) a shortage of essential quantities of domestic materials for a domestic processing industry during periods when the domestic price of such materials is held below the world price as part of a governmental stabilization plan;

and where the situations referred to above give rise or are likely to give rise to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down inthisArticle. 2. In the selection of measures, priority must be given to those which least disturb the functioning of the arrangements in this Agreement. Such measures shall not be. applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination where the same conditions prevail, or a disguised restriction on trade, and shall be eliminated when the conditions no longer justify their maintenance. In addition, the measures which may be adopted pursuant to paragraph 1(c) shall not operate to increase the exports of or the protection afforded to the domestic processing industry concermed, and shall not depart from the provisions of this Agreement relating to non-discrimination. 3. Before taking the measures provided for in paragraph 1, or as soon as possible in cases to which paragraph 4 applies, the Party intending to take the measures shall supply the Joint Committee with all relevant information, with a view to seeking a solution acceptable to the Parties. The Parties within the Joint Committee may agree on any means needed to put an end to the difficulties. If no agreement is reached within 30 days of the matter being referred to the Joint Committee, the exporting Party may apply measures under this Article on the exportation oftheproductconcermned. 4. Where exceptional and critical circumstances requiring immediate action make prior information or examination impossible, the Party intending to take the with the situation and shall inform the other Party immediately thereof. 5. Any measures applied pursuant to this Article shall be immediately notified to the Joint Committee and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their elimination as soon as circumstances permit.

SECTIONI INDUSTRIALPRODUCTS

ARTICLE 16 Scope

str. 8The provisions of this Section shall apply to products originating in the Parties falling within Chapters 25 to 97 of the Harmonized System; with the exception of the products listed in Annex I of this Agreement.

ARTICLE 17 Customs Duties on Imports and Charges Having Equivalent Effect

str. 81. Customs duties on imports into Turkey of goods originating in Chile shall be abolished upon the entry into force of this Agreement. 2. Customs duties on imports into Chile of goods originating in Turkey, other than those listed in Annex II and Annex III shall be abolished upon the entry into force of this Agreement. 3. Customs duties on imports into Chile of goods originating in Turkey, which are listed in Annex II shall be progressively abolished in accordance with the timetable laid down thereof. 4. Customs duties on imports of products which are listed in Annex III shall not be subject to the concessions referred to in this Article. 5. From the date of entry into force of this Agreement no new customs duties on imports or charges having equivalent effect shall be introduced in trade between the Parties. 6. Turkey and Chile shall abolish in trade between themselves any charges having an equivalent effect to customs duties on imports upon the entry into force of this Agreement.

SECTIONII AGRICULTURAL,PROCESSEDAGRICULTURAL ANDFISHERYPRODUCTS

ARTICLE 18 Scope

str. 91. The provisionis of this Section shall apply to basic agricultural, processed products") originating in the territory of each Party. 2. products falling within Chapters 01 to 24 of the Harmonized System and including the products listed in Annex I of this Agreement.

ARTICLE 19

Exchange of Concessions

str. 91. The Parties to this Agreement shall mutually allocate concessions set forth in Annex IV in accordance with the provisions of this Section. 2. Taking into account the role of agriculture in their respective economies, the development of trade in agricultural products and the rules of their respective agricultural policies, the Parties shall examine in the Joint Committee the possibilities of granting further concessions to each other in trade in agricultural products. If a decision to improve the.conditions of access is agreed, the Parties will evaluate the increase of the current quotas and the reduction or elimination of customs duties.

ARTICLE 20 Price Band System

str. 9Chile may maintain its price band system as established under its Law No. 18.525 or succeeding system for the products covered by that law, provided it is applied consistent with Chile's rights and obligations under the WTO Agreement and in a manner that does not afford more favorable treatment to imports of any third country, including countries with which Chile has concluded or will conclude in the future an agreement notified under Article XXIV of the GATT 1994.

The objectives of this Chapter are:

str. 9- a) to facilitate bilateral trade in food, plants and animals and products thereof, while protecting human, animal or plant life or health in the territory of each Party:
- b) to_ deepen mutual understanding of each Party's regulations and procedures measures;
- c) to strengthen cooperation between the Parties' competent authorities that have the responsibility for sanitary and phytosanitary matters; and
- d) to provide a means to improve communication, cooperation and resolution of sanitary and phytosanitary issues.

CHAPTERI

ARTICLE 21 General Provisions

str. 101. The Parties affirm their rights and obligations with respect to each other under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (hereinafter referred to as "the SPS Agreement"). 2. The Parties shall not apply their regulations in sanitary and phytosanitary matters as an arbitrary or unjustifiable discrimination or a disguised restriction on trade between them.

ARTICLE23 Sub-Committee on Sanitary and Phytosanitary Matters

str. 111. The Parties hereby agree to establish a Sub-Committee on Sanitary and Phytosanitary Matters (hereinafter referred to as "the Sub-Committee on SPS Matters") comprising representatives of each Party who have responsibility for
2. The Sub-Committee on SPS Matters shall provide a forum for:
- a) consulting on matters related to the development or application of sanitary and phytosanitary measures that affect, or may affect, trade between the Parties;
- b) consulting on issues, positions, and agendas for meetings of the Committee on Sanitary and Phytosanitary Measures and the other relevant international organizations referred to in the SPs Agreement;
- c) coordinating technical cooperation programs on sanitary and phytosanitary matters;
- d) improving bilateral understanding related to specific implementation issues concerning the SPS Agreement;
- e) reviewing progress on addressing sanitary and phytosanitary matters that may arise between the Parties' competent authorities with responsibility for such matters; and
- discussing matters with a view to reach a consensus related to consultation process referred to in sub-paragraph (a). 3. The Sub-Committee on SPS Matters shall perform its work in accordance with the terms of reference that will be established during the first meeting of the Joint Committee. 4. The Sub-Committee on SPS Matters shall meet on the request of either Party to consider any matter arising under this Chapter. 5. The Parties agree to establish contact points for the better implementation of this Chapter.

ASSESSMENTPROCEDURES

ARTICLE 24 Objectives

str. 12The objectives of this Chapter are to increase and facilitate trade by preventing and eliminating unnecessary obstacles to trade and enhancing bilateral cooperation in accordance with the rights and obligations of the Parties with respect to the WTO Agreement on Technical Barriers to Trade (hereinafter referred to as "the TBT Agreement").

ARTICLE 25 Scope and Coverage

str. 121. Except as provided in paragraph 2, this Chapter applies to all standards, technical regulations and conformity assessment procedures, as defined in the TBT Agreement that may, directly or indirectly, affect trade in goods between the Parties. 2. Sanitary and phytosanitary measures and technical specifications prepared by governmental bodies for public procurement purposes are not subject to the provisions of this Chapter.

ARTICLE26 Definitions

str. 12For the purpose of this Chapter, the definitions of Annex 1 of the TBT Agreement shall apply. In this respect, the Decision of the WTO Committee on Technical Barriers to Trade on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex 3 of that Agreement shall also apply.

ARTICLE 27 Basic Rights and Obligations

str. 12The Parties confirm their rights and obligations with respect to each other under the TBT Agreement.

ARTICLE28 Trade Facilitation

str. 121. The Parties shall intensify their bilateral cooperation in the fields of standards, technical regulations, and conformity assessment procedures with a view to facilitatingtradebetween them. 2.

str. 13procedures that are appropriate for particular issues or sectors. Such initiatives may include cooperation on regulatory issues, such as convergence and/or equivalence of technical regulations and standards, alignment with international standards, reliance on a supplier's declaration of conformity and use of accreditation to qualify conformity assessment bodies, as well as cooperation through recognition of the results of the conformity assessment procedures.

ARTICLE 29 Transparency

str. 131. The Parties acknowledge the importance of transparency in decision-making, including providing a meaningful opportunity for interested parties to provide comments on proposed technical regulations and conformity assessment procedures. Where a Party publishes a notice under Article 2.9 or 5.6 of the TBT Agreement,itshall;
- a) include in the notice a statement describing the objective of the proposed technical regulation or conformity assessment procedure and the rationale for the approach the Party is proposing; and
- b) transmit the proposal electronically to the other Party's enquiry point, which same time as it sends the notification to theWTO. Each Party should allow, when it is possible, at least 60 days after it transmits a proposal in writing. 2. Where a Party makes a notification under Article 2.10 or 5.7 of the TBT Agreement, it shall at the same time transmit the notification to the other Party
3. On request of the other Party, a Party shall provide the other Party information regarding the objective of, and rationale for, a standard, technical regulation, or conformity assessment procedure that the Party has adopted or is proposing to adopt.

ARTICLE30 Technical Cooperation

str. 14With a view to fulfill the objectives of this Chapter, the Parties shall, on the request of the other Party and where possible, cooperate towards:

- regulations, standards, conformity assessment, metrology and accreditation;
- b) exchanging general information and publications on conformity assessment, certification bodies, including notified bodies, designation and accreditation of conformity assessment bodies;
- c) providing technical advise, information and assistance on mutually agreed terms and conditions and exchanging experience to enhance the other Party's system for standards, technical regulations and conformity assessment procedures, and related activities;
- d) increasing the information exchange, particularly regarding non-compliance of a product in bilateral trade with relevant technical regulations and conformity assessment procedures of a Party:
- e)examining. the compatibility and/or equivalence of their respective technical regulations, standards and conformity assessment procedures;
- f)giving favorable consideration, on request of the other Party, to any sector specific proposal for further cooperation;
- g) promoting and encouraging bilateral cooperation between respective organizations, public and/or private, of the Parties responsible for standardization, testing, certification, accreditation and metrology;
- h) increasing their bilateral cooperation in the relevant international organizations and fora dealing with the issues covered by this Chapter; and
- i) informing the other Party, as far as possible, about the agreements or programs subscribed at international level in relation to TBT issues.

ARTICLE 31

Sub-Committee on Standards, Technical Regulations and Conformity Assessment

str. 151. The Parties hereby agree to establish a Sub-Committee on Standards, Technical Regulations and Conformity Assessment (hereinafter referred to as ""the SubCommittee on TBT Matters"). The Sub-Committee on TBT Matters shall report
2. The Sub-Committee on TBT Matters may address any matter related to the effective functioning of this Chapter. The responsibilities and functions of the Sub-Committee on TBT Matters shall include:
- a) monitoring and reviewing the implementation and administration of this Chapter;
- b) promptly addressing any issue that a Party raises related to the preparation, adoption and application of standards, technical regulations or conformity assessment procedures;
- c) providing a forum for discussions and exchanging information on Parties' systems for standards, technical regulations, and conformity assessment procedures;
- d) promoting, encouraging and otherwise facilitating bilateral cooperation between respective organizations, public and/or private, of the Parties responsible for standardization, testing, certification, accreditation and metrology:
- e)exchanging information on developments in non-governmental, regional, and multilateral fora engaged in activities related to standardization, technical regulations, and conformity assessment procedures;
- f) exploring any means aimed at improving access to the Parties" respective markets and enhancing the functioning of this Chapter; and
- g) reviewing this Chapter in light of any developments under the TBT Agreement, and developing recommendations for amendments to this Chapter in light of those developments. 3. The Sub-Committee on TBT Matters shall meet at least once a year, unless otherwise agreed by the Parties. By mutual agreement, ad hoc working groups may be established if necessary. 4. The terms of reference of the Sub-Committee on TBT Matters shall be determined in the first meeting of the Joint Committee.

ARTICLE 32 Information Exchange

str. 15Any information or explanation requested by a Party pursuant to provisions of this Chapter shall be provided by the other Party in print or electronically within a reasonable period of time.

TRADEDEFENSE

ARTICLE 33 Safeguards

str. 161. Each Party retains its rights and obligations under Article XIX of GATT 1994 WTO Agreement, and their successors. 2. This Agreement does not confer any additional rights or obligations on the Parties with regard to actions taken pursuant to Article XIX of GATT 1994 and the WTO Safeguards Agreement, and their successors.

ARTICLE 34 Antidumping and Countervailing Measures

str. 161. The rights and obligations of the Parties related to antidumping and WTO Agreement on Subsidies and Countervailing Measures, and their successors. 2. s s p Parties with regard to the application of antidumping and countervailing measures, referred to in paragraph 1 of this Article.

CHAPTER IV INTELLECTUALPROPERTY

Article 35 Intellectual Property

str. 161. The Parties recognize the importance of intellectual property in promoting economic and social development, technological innovation, as well as in promoting the transfer and dissemination of technology to the mutual advantage of technology producers and users, particularly in the new digital economy. 2. The Parties reaffirm their existing rights and obligations with respect to cach ( , s sr
3. Nothing in this Chapter shall prevent a Party from adopting appropriate measures to prevent:
4.

str. 17transfer of technology; and
- b) anticompetitive practices that may result from the abuse of intellectual property rights

provided that such measures are consistent with this Agreement. 4. The Parties shall provide the legal means for interested parties to prevent commercial use of country names of the other Party in relation to goods in a manner which is likely to mislead consumers as to the origin of such goods. 5. Consistent with paragraph 1, the Parties agree to cooperate with each other. Such cooperation may include, inter alia:
- a) notification of contact points;
- b) exchange of information regarding the intellectual property systems, aimed at promoting the efficient registration of intellectual property rights;
- c) other activities and initiatives as may be mutually determined between the Parties.

ARTICLE36 Spirits

str. 171. Turkey shall recognize "Pisco" as a Chilean geographical indication for spirits, within the meaning of paragraph 1 of Article 22 of the TRIPS Agreement. Turkey shall not permit the sale of any product as ""Pisco", unless it has been manufactured in Chile, according to the laws of Chile governing the manufacture of "Pisco". This shall not prejudice the rights that Turkey may recognize, in addition to Chile, exclusively to Peru with respect to "Pisco". 2. Chile shall recognize "Rakr" as a Turkish geographical indication for spirits, within the meaning of paragraph 1 of Article 22 of the TRIPS Agreement. Chile shall not permit the sale of any product as "Rakr'", unless it has been manufactured in Turkey, according to the laws of Turkey governing the manufacture of "Rak1".

ARTICLE37 Cooperation

str. 18- to expand and enhance the benefits of this Agreement and to build a strategic economicpartnership. 2. Cooperation between the Parties should contribute to achieving the objectives of this Agreement through the identification and development of innovative cooperation initiatives capable of providing added value to the bilateral relationship. 3. Without prejudice to the provisions of the "Agreement on Trade and Economic, Technical and Scientific Cooperation between the Government of the Republic of Turkey and the Government of the Republic of Chile", areas of cooperation may include but should not be limited to innovation, research and development, agriculture, food production and processing, air transport, mining, energy, environment, small and medium size enterprises, tourism, gender issues, education, labor and employment matters, human capital development and culturalcollaboration. 4. Cooperation between the Parties under this Title will complement the cooperation referred to in other Titles of this Agreement. 5. The Parties will establish close cooperation aimed inter alia at:
- a) strengthening and building on existing cooperative relationships;
- d rn p sa p n ao sdo mu (q competitiveness, fostering innovation and encouraging research and development;
- c) supporting the role of the private sector in promoting and building strategic alliances to encourage mutual economic growth and development; and
- d) increasing the level of and further developing cooperation activities between the Parties in areas of mutual interest. 6. Cooperative activities will be agreed between the Parties and may include, but should not be limited to exchange of people and information; cooperation in regional and multilateral fora; dialogues, conferences and seminars; the
- sector cooperation. -

str. 197. The objectives of both Parties in Labor Cooperation will be to promote decent work, sound labor policies and practices of each Party's labor systems, improve the capacities and capabilities of the Parties and the development and management of human capital for enhanced employability, business excellence

The Parties reaffirm their obligations as members of the International Labor Organization (ILO) and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up (1998). Each Party shall strive to ensure that the principles embodied in such declaration and the intermnationally recognized labor rights are included and protected by its domestic laws and agree to cooperate on labor and employment matters of mutual interest and benefit, through jointly decided activities which may refer, among others, to:

- a) decent work, including its dimensions of employment, labor standards, social protection and social dialogue;
- b) compliance and enforcement systems and management of labor disputes; and
- c) employment systems, human capital development, , training and employability. weakening or reducing the protections afforded in domestic labor laws. Accordingly, a Party shall not fail to effectively enforce its labor laws, in a manner affecting trade between theParties. 8. The Parties recognize the importance of strengthening capacity to protect the environment and promote sustainable development in concert with strengthening trade and investment relations between them. The Parties reaffirm their intention to continue to pursue environmental protection, and to fulfill their respective multilateral environment commitments. The Parties endeavor to have their environment laws, regulations, policies and practices in harmony with their international environment commitments; agree that it is inappropriate to set or use their environmental laws, regulations, policies and practices for trade protectionist purposes; as well as it is inappropriate to relax, or fail to enforce or administer, their environment laws and regulations to encourage trade and investment. The Parties agree to cooperate in the field of the environment. The aim of cooperation will be the prevention and/or reduction of contamination and degradation of natural resources and ecosystems, and rational use of the latter; through developing and endorsing special programs and projects dealing, inter alia, with the transfer of knowledge and technology.

- a) climate change;

str. 20- b) biodiversity and conservation of natural resources;
- c) management of hazardous chemicals;
- d) air quality;
- e) water management;
6. waste management;
- g) marine and coastal ecological conservation and pollution control;
- h) strategic environmental impact assessment;
- i) improvement of environmental awareness, including environmental education, and public participation. 9. New areas of cooperation may be developed through existing agreements and through appropriate implementing arrangements. 11. 10.For the purposes of this Title, the Joint Committee may decide to establish subcommittees or working groups. 11. Communications regarding the implementation of this Title shall be distributed through the contact points designated by each Party before the first meeting of the Joint Committee.

Scope and Coverage

str. 21Unless otherwise provided for in this Agreement, this Title shall apply with respect to the avoidance or settlement of disputes between the Parties concerning the interpretation and implementation of this Agreement, when a Party considers that:

- a) a measure of the other Party is inconsistent with its obligations under this Agreement; or
- b) the other Party has otherwise failed to carry out its obligations under this Agreement.

ARTICLE 39

Choice of Dispute SettlementProcedure

str. 211. Where a dispute regarding any matter arises under this Agreement and the WTO Agreement, the complaining Party may select the dispute settlement procedure in which to settle the dispute. 2. Once the complaining Party has requested a panel under an agreement referred to in paragraph 1, the forum selected shall be used to the exclusion of the other.

ARTICLE40 Consultations

str. 211. The Parties shall at all times endeavor to agree on the interpretation and implementation of this Agreement and shall make every attempt through cooperation and consultations to avoid and settle disputes between them and to arrive at a mutually satisfactory resolution of any matter that might affect its operation. 2. Each Party may request consultations within the Joint Committee with respect to an existing or proposed measure or any matter relating to the interpretation and implementation of this Agreement. 3. The requesting Party shall deliver written notification to the other Party, stating the reasons for the request, including the identification of the measure at issue and an indication of the legal basis for the complaint, and providing sufficient information to enable an examination of the matter. 4.

str. 224. The Joint Committee shall convene within 30 days after the date of receipt of the request. Upon initiation of consultations, the Parties shall provide information to interpretation and implementation of this Agreement, and give confidential treatment to the information exchanged during consultations. 5. The Joint Committee shall endeavor to resolve the dispute promptly by means of a decision and may make recommendations regarding theimplementing measures to be taken by the Party concermed, and the timeframe for doing so. 6. The Joint Committce may call on technical advisers or create working groups or mutually satisfactory resolution of the dispute. The Parties may agree to suspend further proceedings provided in the following articles during the activities envisaged in this paragraph. 7. Consultations under this Article shall be confidential and without prejudice to

ARTICLE 41 Establishment of Arbitration Panels

str. 221. The Parties shall at all times endeavor to reach a mutually satisfactory agreement on the dispute. 2. If a matter, unless otherwise mutually agreed, has not been resolved within 15 days after the Joint Committee has convened pursuant to paragraph 4 of Article 40 or 45 days after the date of receipt of the request for consultations within the Joint Committee, whichever is earlier, the complaining party may request in writing the establishment of an arbitration panel. 3. Pursuant to this Article, the complaining Party shall identify in the request for the establishment of an arbitration panel, the specific measure at issue, the legal basis of the complaint including any provision of this Agreement alleged to have been breached and any other relevant provisions, the factual basis for the complaint, and shall deliver the request to the other Party. 4. The establishment of an arbitration panel shall not be requested on any matter relating to a proposed measure. :
5. The date of establishment of an arbitration panel shall be the date on which the chair is appointed.

ARTICLE42 Terms of Reference.ofArbitrationPanels

str. 23Unless the Parties otherwise agree, within 20 days from the date of receipt of the arbitration panel shall be:

"To examine, in the light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of an arbitration panel pursuant to Article 41, to make findings together with the reasons on whether the measure is in conformity ss g resolution of the dispute. If the Parties agree, the arbitration panel may make recommendations for resolution of the dispute."

ARTICLE 43

Composition of Arbitration Panels

str. 23- 1.Arbitration panels shall consist of three arbitrators. 2. Each Party shall appoint one arbitrator, who may be its national, within 30 days from the date of receipt of the request for the establishment of the arbitration panel. The Parties shall agree on and appoint the third arbitrator, who shall be the chair of the arbitration panel, within 45 days after the date of receipt of the request for the establishment of the arbitration panel, taking into account the list established pursuant to paragraph 3. If the Parties fail to agree on and appoint : the third arbitrator within 45 days, the third arbitrator shall be chosen within seven days by lot from the list established pursuant to paragraph 3. 3. The Joint Comnittee shall, in its first meeting, establish a list of 10 individuals who are willing and able to serve as third arbitrator. In establishing the list the Parties will take into consideration the indicative list of governmental and nongovernmental arbitrators, established by the WTO. The Joint Committee shall ensure that the list always contains 10 individuals at any point in time. These individuals shall not be a national of either Party, nor have his or her usual place of residence in either Party, nor be employed by either Party, nor have dealt with the dispute in any capacity. 4. All arbitrators shall have specialized knowledge or experience. in law, international trade or other matters relating to this Agreement or in the resolution of disputes deriving from international trade agreements, be independent, serve in their individual capacities and not be affiliated with, nor
- take instructions from, any Party or organization and shall comply with the Code of Conduct, which will be adopted by the Joint Committee upon the entry into force of this Agreement.

str. 24- requirements of the Code of Conduct, the Parties shall consult and, if so agreed,

- proceeding or resigns, or is to be replaced according to paragraph 5; a successor shall be selected within 10 days in accordance with the selection procedure followed to select that arbitrator. The successor shall have all the powers and duties of the original arbitrator. The work of the arbitration panel shall be suspended for a period beginning on the date the arbitrator becomes unable'to participate in the proceeding or resigns. The work of the arbitration panel shall resume on the date the successor is appointed.

ARTICLE 44

Proceedings of Arbitration Panels

str. 241. Panel meetings shall be closed to the public, unless the Parties decide otherwise. 2. The Parties shall be given the opportunity to provide at least one written submission and to attend any of the presentations, statements or rebuttals in the proceedings. All information or written submissions submitted by a Party to the arbitration panel, including any comments on the draft report and responses to questions put by the arbitration panel, shall be made available to the other Party. 3. A Party asserting that a measure of the other Party is inconsistent with the provisions of this Agreement shall have the burden of establishing such inconsistency. A Party asserting that a measure is subject to an exception under this Agreement shall have the burden of establishing that the exception applies. 4. The arbitration panel should consult with the Parties as appropriate and provide adequate opportunities for the development of a mutually satisfactory resolution. 5. The arbitration panel shall aim to make its decisions, including its report, by consensus but may also make its decisions, including its report, by majority vote. 6. At the request of a Party or on its own initiative and subject to such terms and conditions as the Parties may agree within 10 days, the arbitration panel may seek information from any relevant source and may consult experts to obtain their opinion or advice on certain aspects of the matter. The arbitration panel shall provide the Parties with a copy of any advice or opinion obtained and an opportunity to provide comments. 7. The deliberations of the arbitration panel and the documents submitted to it shall be kept confidential. 8.

str. 258. Notwithstanding paragraph 7, either Party may make public statements as to its views regarding the dispute, but shall treat as confidential, information and written submissions submitted by the other Party to the arbitration panel which shall, within 30 days of a request of the other Party, provide a non-confidential summary of the information or written submissions which may be disclosed publicly. 9. Each Party shall bear the cost of its appointed arbitrator and its own expenses. The cost of the chair of an arbitration panel and other expenses associated with the conduct of the proceedings shall be borne by the Parties in equal shares. The costs and expenses of the arbitrators shall normally conform to the WTO standards.

ARTICLE 45 Suspension or Termination of Proceedings

str. 251. The Parties may agree that the arbitration panel suspend its work at any time for a period not exceeding 12 months from the date of such agreement. In the event of such a suspension, the time-frames regarding the work of the arbitration panel shall be extended by the amount of time that the work was suspended. If in any case, the suspension of the work of the arbitration panel exceeds 12 months, the authority for the establishment of the arbitration panel shall lapse unless the Parties agree otherwise. This shall not prejudice to the rights of the complaining party to request at a later stage, the establishment of an arbitration panel on the same subject matter. 2. jointly so notifying the chair of the arbitration panel at any time before the issuance of the report to the Parties.

ARTICLE 46 ArbitrationPanel Report

str. 251. The report of the arbitration panel shall be drafted without the presence of the Parties. The arbitration panel shall base its report on the relevant provisions of this Agreement and the submissions and arguments of the Parties, and may take into account any other relevant information provided to the arbitration panel. 2. The arbitration panel shall submit its report containing its findings and conclusions to the Parties, as a general rule not later than thrce months from the date of establishment of the arbitration panel. If the arbitration panel cannot submit its report within this period, it may extend that period to a maximum of five months from the date of establishment of the arbitration panel. 3.

str. 263. Arbitration panels shall interpret the provisions of this Agreement in accordance faith and avoid circumvention of their obligations. 4. In cases of urgency, including those involving perishable goods, the arbitration panel shall make every effort to issue its report to the Parties within 75 days from the date of establishment of the arbitration panel. In no case should it do so later than four months from that date. The arbitration panel may give a preliminary report on whether a case is urgent. 5. The report of the arbitration panel shall be final and binding on the Parties. 6. The report shall contain both the descriptive part summarizing the submissions and arguments of the Parties and the findings and determinations of the arbitration panel. If the Parties agree, the arbitration panel may make recommendations for resolution of the dispute in its report. The findings and determinations of the arbitration panel and, if applicable, any recommendations cannot add to or diminish the rights and obligations of the Parties provided in this-Agreement.

ARTICLE47 Implementation of the Report

str. 261. Unless the Parties agree otherwise, the Party complained against shall eliminate the non-conformity as determined in the report of the arbitration panel, immediately, or if this is not practicable, within a reasonable period of time. 2. The reasonable period of time referred to in paragraph. 1 shall be mutually determined by the Parties. Where the Parties fail to agree on the reasonable period of time within 45 days after the date of issuance of the report of the arbitration panel referred to in Article 46, either Party may refer the matter to an arbitration panel, which shall determine the reasonable period of time. 3. The Party complained against shall notify to the complaining Party the implementing measures adopted in order to put an end to the violation of its obligations under this Agreement, before the expiry of the reasonable period of time agreed by the Parties or determined in accordance with paragraph 2. Where there is disagreement between the Parties as to whether the Party complained
4. against eliminated the non-conformity as determined in the report of the arbitration panel within the reasonable period of time as determnined pursuant to paragraph 2, either Party may refer the matter to an arbitration panel as provided for inArticle48.

Non-Implementation, Compensation and Suspension of Concessions or Other

str. 271. If the Party complained against fails to notify the implementing measures before the expiry of the reasonable period of time, or notifies the complaining Party that it is impracticable, or the arbitration panel to which the matter is referred pursuant to paragraph 3 of Article 47 rules that the Party complained against has failed to eliminate the non-conformity within the reasonable period of time, the Party complained against shall, if so requested, enter into negotiations with the complaining Party with a view to reaching mutually satisfactory compensation. 2. If there is no agreement on satisfactory compensation within 20 days after the date of receipt of the request mentioned in paragraph 1, the complaining Party may suspend the application to the Party complained against of concessions or other obligations under this Agreement, after giving notification of such after the date of receipt of the request mentioned in paragraph 1. 3. The compensation referred to in paragraph 1 and the suspension referred to in is preferred to full elimination of the non-conformity as determined in the report of the arbitration panel. The suspension shall only be applied until such time as the non-conformity is fully eliminated or a mutually satisfactory solution is reached. 4. In considering what concessions or other obligations to suspend pursuant to paragraph 2:
5. a the complaining Party should first seek to suspend concessions or other obligations with respect to the same sector(s) as that in which the report of the arbitration panel referred to in Article 46 has found a failure to comply with the obligations under this Agreement; and
- b) if the complaining Party considers that it is not practicable or effective to suspend concessions or other obligations with respect to the same sector(s), it may suspend concessions or other obligations with respect to other sectors. The notification of such suspension pursuant to paragraph 2 shall indicate the reasons on which it is based. In the selection of the benefits to suspend, the Parties will take into consideration those which least disturb the fiunctioning of this Agreement. 5. The level of suspension referred to in paragraph 2 shall be equivalent to the level of the nullification or impairment. 8.

str. 286. If the Party complained against considers that the requirements for the suspension of concessions or other obligations by the complaining Party set out in paragraphs 2, 3, 4 or 5 have. not been met, it may refer the matter to an the arbitration panel has its ruling. 7. The arbitration panel that is established for the purposes of this Article or Article 47 shall have, wherever possible, as its arbitrators, the arbitrators of the original arbitration panel. If this is not possible, then the arbitrators to the arbitration panel that is established for the purposes of this Article or Article 47 shall be appointed pursuant to Article 43. The arbitration panel established under this Article or Article 47 shall submit its report to the Parties within 60 days after the date when the matter is referred to it. When the arbitration panel considers that it cannot issue its report within the aforementioned 60 day period, it may extend . that period for a maximum of 30 days with the consent of the Parties. The report shall be final and binding on the Parties.

ARTICLE49 Rules of Procedure

str. 28The Joint Committee shall adopt the Rules of Procedure which provide for the details of the rules and procedures of arbitration panels established under this Title, upon the entry into force of this Agreement. Unless the Parties otherwise agree, the arbitration panel shall follow the rules of procedure adopted by the Joint Committee and may, after consulting the Parties, adopt additional rules of procedure not inconsistent with the rules adopted by the Joint Committee.

ARTICLE50 Application and Modification of Rules and Procedures

str. 28Any time period or other rules and procedures for arbitration panels provided for in this Title, including the Rules of Procedure referred to in Article 49, may be modified by mutual consent of the Parties. The Parties may also agree at any time not to apply any provision of this Title.

TRANSPARENCY,INSTITUTIONALPROVISIONS,EXCEPTIONSAND FINALPROVISIONS

ARTICLE 51 Contact Points and Exchange of Information

str. 291. In order to facilitate communication between the Parties on any trade matter covered by this Agreement, the Parties hereby establish the following contact points:
- a) for the Republic of Turkey: Prime Ministry, Undersecretariat for Foreign Trade, or its successor; and
3. b)for the Republic of Chile: the Europe Department of the General Directorate of International Economic Affairs, or its successor. 2. On the request of either Party, the contact point of the other Party shall indicate the office or official responsible for the matter and provide the required support to facilitate communication with the requesting Party. Each Party shall notify the
3. On request of the other Party, and to the extent possible under its domestic laws and regulations, each Party shall provide information and reply to any question from the other Party relating to an actual or proposed measure that might substantially affect the operation of this Agreement. 4. The information referred to under this Article shall be considered to have been provided when the information has been made available by appropriate notification to the WTO or when the information has been made available on the official, publicly and fee-free accessible website of the Party concerned.

ARTICLE 52 Cooperation on Increased Transparency

str. 29The Parties agree to cooperate in bilateral and multilateral fora on ways to increase transparency in trade matters.

ARTICLE53 Publication

str. 30Each Party shall ensure that its laws and regulations relating to any trade matter

ARTICLE54 Establishment of the Joint Committee

str. 301. A Joint Committee is hereby established in which cach Party shall be represented by its senior officials. The Joint Committee shall be responsible for the administration of this Agreement and shall ensure its proper implementation. 2. For the objective of the proper implementation of this Agreement, the Joint Committee shall work in pursuant with the following purposes; included but not . limited to:
- a) review the general functioning of this Agreement;
- b) set up sub-committees and working groups as it considers necessary to assist it in accomplishing its tasks;
5. review, consider and, as appropriate, decide on specific matters related to the operation and implementation of this Agreement, including matters reported by sub-committees or working groups;
- d) supervise the work of sub-committees, working groups and contact points established under this Agreement;
7. e facilitate, as appropriate, the avoidance and settlement of disputes arising under this Agreement, including through consultations pursuant to Article 40;
8. consider and adopt any amendment to this Agreement or other modification or rectification to the commitments therein. The Parties shall implement any amendment or other modification approved by the Joint Committee subject to the completion of the following procedures:
- i. In the case of Chile, through Executive Agreements (Acuerdos de Ejecucion), in accordance with the Political Constitution of the Republic of Chile (Constitucion Politica de la Republica de Chile). - i. In the case of Turkey, in accordance with the applicable internal procedures. 11. g as appropriate, issue interpretations of the Agreement;
- h) the Parties and the further development of the trade relationship;
13.

str. 31i) and to further the objectives of this Agreement; and
- j) take such other actions as the Parties may agree.

ARTICLE55 Procedures of the Joint Committee

str. 311. The Joint Committee shall meet whenever necessary upon request but normally at least once a year. Either Party may request a meeting to be held. 2. All decisions of the Joint Committee shall be taken by mutual agreement. 3. The Joint Committee shall adopt its rules of procedure.

CHAPTER III EXCEPTIONS

ARTICLE 56 General Exceptions

str. 31For the purpose of this Agreement, Article XX of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.

ARTICLE57 Security Exceptions

str. 31- . Nothing in this Agreement shall be construed:
- a) to require a Party to furnish any information the disclosure of which it considers contrary to its essential security interests; or
- b) to prevent a Party from taking any action which it considers necessary for the protection of its essential security interests
1. relating to fissionable materials or the materials from which they are derived;
- i. relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials, as is carried on directly or indirectly for the purpose of supplying a military establishment;
-

str. 32- c) to prevent a Party from taking any action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security. 2. A Party taking action under sub-paragraphs (b) and (c) of paragraph 1, shall inform the Joint Committee to the fullest extent possible of measures taken and of their termination.

ARTICLE58 Balance of Payments Measures on Trade in Goods

str. 32Should a Party decide to impose measures for balance of payments purposes, it shall do, so only in accordance with that Party's rights and obligations under GATT 1994, including the Declaration.on Trade Measures Taken for Balance of Payments Purposes (1979 Declarations) and the Understanding on the Balance of Payments Provisions of the GATT 1994 (BOP Understanding). In adopting such measures, the Party shall immediately consult with the other Party.

ARTICLE59 Taxation

ARTICLE60 Disclosure ofInformation

str. 331. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information provided in confidence by the other Party pursuant to this Agreement. 2. Nothing in this Agreement shall be construed as requiring a Party to furmish or allow access to confidential information, the disclosure of which would impede law enforcement or otherwise be contrary to the public interest or which would prejudice the legitimate commercial interests of particular enterprises, public or private.

CHAPTERIV FINAL PROVISIONS

ARTICLE 61 Evolutionary Clause

str. 331. The Parties may mutually agree to extend this Agreement with the aim of broadening and supplementing its scope in accordance with their respective legislation, by concluding agreements on specific sectors or activities in the light of the experience gained during its implementation. 2. Unless otherwise agreed, no later than two years after the entry into force of this Agreement, the Parties will commence exploratory talks on trade in services and investment.

ARTICLE 62 Annexes

str. 33Annexes to this Agreement shall form an integral part thereof.

ARTICLE 63 Amendments

str. 331. The Parties may agree, in writing, on any modification of or addition to this Agreement. 2.

str. 34procedures of each Party, a modification or addition shall constitute an integral part of this Agreement. Such amendment shall enter into force on the first day of the second month following the date on which the Parties exchange written notification that such procedures have been completed, or after such other period as the Parties may agree.

ARTICLE 64 Entry into Force

str. 341. The Parties shall ratify this Agreement in accordance with their domestic legal procedures. 2. This Agreement shall enter into force on the first day of the second month following the date on which the Parties exchange written notification that such procedures have been completed.

ARTICLE 65 Duration and Termination

str. 341. This Agreement shall be valid indefinitely. 2. Either Party may give written notice to the other of its intention to denounce this Agreement. Denunciation shall take effect on the first day of the seventh month after notification to the other Party.

ARTICLE 66 Authentic Texts

str. 34This Agreement shall be done in English, Spanish, and Turkish languages, all being equally authentic. In case of divergence, the English text shall prevail. IN WITNESS WHEREOF the undersigned plenipotentiaries, being duly authorized thereto, have signed this Agreement. DONE at Santiago, Republic of Chile, in two originals, this fourteenth day of July two thousand and nine.

str. 35For the Republic of Turkey

For the Republic of Chile

ANNEXI List of products referred to in Articles 16 and 18

| HS Code | 2905.43 | (mannitol) |

| HS Code | 2905.44 | (sorbitol) |
| HS Heading | 33.01 | (essential oils) |
| HS Code | 3302.10 | (odoriferous substances) |
| HS Headings | | 35.01 to 35.05 (albuminodal substances, modified starches, glues) |
| HS Code | 3809.10 | (finishing agents) |
| HS Code | 3824.60 | (sorbitol n.e.p.) |
| HS Headings | 41.01 to 41.03( | (hides and skins) |
| HS Heading | 43.01 | (raw furskins) |
| HS Headings | | 50.01 to 50.03 (raw silk and silk waste) |
| HS Headings | | 51.01 to 51.03 (wool and animal hair) |
| HS Headings | | 52.01 to 52.03 (raw cotton, cotton waste and cotton carded or combed) |
| HS Heading | 53.01 | (raw flax) |
| HS Heading | 53.02 | (raw hemp) |

CHILEANTARIFFCONCESSIONSFORINDUSTRIALPRODUCTS ORIGINATINGINTURKEY (Referred to in Article 17)

str. 36: listed in this Annex, shall be progressively reduced as follows:
- on the date of entry into force of the Agreement, the import duty shall be reduced to 80% of the basic duty
- on 1 January of the first year following the entry into force of the Agreement, the import duty shall be reduced to 60% of the basic duty
- on 1 January of the second year following the entry into force of the Agreement, the import duty shall be reduced to 40% of the basic duty
- on 1 January of the third year following the entry into force of the Agreement, the import duty shall be reduced to 20% of the basic duty
- on 1 January of the fourth year following the entry into force of the Agreement, the remaining import duties shall be abolished. 2. The reduced duties to be applied by the Parties calculated, as set out in this Agreement

ARTICLE2

str. 441. The agricultural products originating in Turkey shall be imported into Chile according to the conditions established in Appendix I to this Annex. 2. The agricultural products originating in Chile shall be imported into Turkey according to the conditions established in Appendix II to this Annex. 3. The reduced duties to be applied by the Parties calculated, as set out in this Agreement shall be rounded to whole numbers using common arithmetical principles. Therefore, all figures which have less than 50 (included) after the decimal point shall be rounded down to the nearest whole number and all figures, which have more than 50 after the decimal point shall be rounded up to the nearest whole number.

ARTICLE3

str. 44The Parties shall grant preferential treatment to cach other as regards the products listed in the Appendices to this Annex in compliance with the provisions of Annex V concerning the rules of origin of this Agreement.

Appendix I to Annex IV

TABLE A

TABLE B

str. 54| [[DOC_PAGE_MARK

Appendix II to Annex IV

For the purposes of this Annex:

str. 70"chapters" and "headings" mean the chapters (two-digit codes) and the headings (four-digit codes) used in the nomenclature which makes up the Harmonized System;

- j) "classified" refers to the classification of a product or material under a particular heading;

GeneralRequirements 1. For the purpose of the implementation of this Agreement, the following products shall be considered as originating in Turkey:

str. 712. a)products wholly obtained in Turkey within the meaning of Article 4;
3. a s s m wholly obtained there, provided that such materials have undergone sufficient working or processing in Turkey within the meaning of Article 5;
2. For the purpose of the implementation of this Agreement, the following products shall be considered as originating in Chile:
- a) products wholly obtained in Chile within the meaning of Article 4;
- b) products obtained in Chile incorporating materials which have not been wholly obtained there, provided that such materials have unidergone sufficient working or processing in Chile within the meaning of Article 5.

Bilateral Cumulation of Origin

str. 711. Materials originating in Turkey shall be considered as materials originating in Chile when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond the operations referred to in Article 6. 2. Materials originating in Chile shall be considered as materials originating in Turkey when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond the operations referred to in Article 6.

ARTICLE4 Wholly ObtainedProducts

str. 711. The following shall be considered as wholly obtained in Turkey or in Chile:
2. a mineral products extracted from their soil or from their seabed;
3.

str. 72- c) live animals born and raised there;
- d) products from live animals raised there;
6. e)products obtained by hunting or fishing conducted there;
7. f products of sea fishing and other products taken from the sea outside the territorial waters of Turkey or of Chile by their vessels;
8. to in subparagraph (f);
9. h)used articles collected there fit only for the recovery of raw materials or for use as waste;
- i) waste and scrap resulting from manufacturing operations conducted there;
11. s n o s gs pna s s provided that they have sole rights to work that soil or subsoil;
- k) goods produced there exclusively from the products specified in subparagraphs (a) to (j). 13. paragraph 1 shall apply only to vessels and factory ships: . - a) which are registered or recorded in Turkey or in Chile;
15. b)which sail under the flag of Turkey or of Chile. 3. In 'addition to the requirements laid down in paragraph 2, products obtained under subparagraphs (f) and (g) of paragraph 1 shall be considered as wholly obtained in Turkey or in Chile when "their vessels" and "their factory ships":
17. a)are owned:
18. i)to an extent of at least 50 per cent by nationals of Turkey or of Chile, or
19.

str. 73ii)by a partnership or limited company with its head office in Turkey or in Chile, of which the manager or managers, Chairman of the Board of such boards are nationals of Turkey or of Chile and, of which at least half the capital belongs to those States or to public bodies or nationals of the said States, or
20. iii) by a company other than those referred to in (i) with its head office in Turkey or in Chile, of which the manager or managers, Chairman of the Board of Directors or the Supervisory Board, and the majority of the members of such boards are nationals of Turkey or of Chile;

and

- b) of which the master and at least 75 per cent of the crew, officers included, are nationals of Turkey or of Chile.

SufficientlyWorked orProcessed Products

str. 731. For the purposes of Article 2, products which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the list of Appendix II to this Annex are fulfilled. The conditions referred to above indicate, for all products covered by this Agreement, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials. Accordingly, it follows that if a product which has acquired originating status by fulfilling the conditions set out in Appendix II is used in the manufacture of another product, the conditions applicable to the resulting product do not apply to the incorporating product, and no account shall be taken of the nonoriginating materials which may have been used in its manufacture. 2. Notwithstanding paragraph 1, non-originating materials which, according to the conditions set out in Appendix II, should not be used in the manufacture of a product may nevertheless be used, provided that:
- a) their total value does not exceed 10 per cent of the ex-works price of'the product;
3.

str. 74non-originating materials are not exceeded through the application of this paragraph. Without prejudice to notes 5 and 6 of Appendix I, this paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonized System. 3. Paragraphs 1 and 2 shall apply except as provided in Article 6.

ARTICLE6 Insufficient Working or Processing

str. 741. Without prejudice to paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 5 are satisfied:
- a) during transport and storage such as drying, freezing, ventilation, chilling and like operations;
3. b)breaking-up and assembly of packages;
4. washing, cleaning; removal of dust, oxide, oil, paint or other coverings;
- d) ironing or pressing of textiles;
6. e)simple painting and polishing operations;
7. husking, partial or total bleaching, polishing, and glazing of cereals and rice;
- g) . operations to colour sugar or form sugar lumps;
- h) peeling, stoning and shelling, of fruits, nuts and vegetables;
10. sharpening, simple grinding or simple cutting;
- 1) sifting, screening, sorting, classifying, grading, matching; (including the making-up of sets of articles);
12.

str. 75k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or
13. affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;
- m) simple mixing of products, whether or not of different kinds;
- n) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;
16. o)operations whose sole purpose is to ease loading;
- p) a combination of two or more operations specified in subparagraphs (a) to (0);
18. q)slaughter of animals. 2. All operations carried out either in Turkey or in Chile on a given product shall be considered when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.

ARTICLE7 Unit of Qualification

str. 751. The unit of qualification for the application of the provisions of this Annex shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonized System.

Accordingly, it follows that:

str. 75- a when a product composed of a group or assembly of articles is classified under the terms of the Harmonized System in a single heading, the whole constitutes the unit of qualification;
- b when a consignment consists of a number of identical products classified under the same heading of the Harmonized System, each product must be taken individually when applying the provisions of this Annex. -

str. 762. Where, under General Rule 5 of the Harmonized System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin. Any other packaging shall not be included for the

Accessories, Spare Parts and Tools

str. 76Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle:

- which are part of the normal equipment and included in the price thereof, or
- which are not separately invoiced,

shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

ARTICLE 9 Sets

str. 76Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15 per cent of the ex-works price of the set.

ARTICLE 10 Neutral Elements

str. 76In order to determine whether a product originates, it shall not be necessary to determine the origin of the following which might be used in its manufacture:

- a) energy and fuel;
- b) plant and eq uipment;
- c) machines and tools;
- d) goods which do not enter and which are not intended to enter into the final composition of the product.

- must be fulfilled without interruption in Turkey or in Chile.

str. 772. If originating goods exported from Turkey or Chile to another country return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:
- a) the goods returned are the same as those exported; and
- b) the y have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

ARTICLE 12

Direct Transport

str. 771. The preferential treatment provided for under this Agreement applies only to products, satisfying the requirements of this Annex, which are transported directly between Turkey and Chile. However, products may be transported through other territories with, should the occasion arise, trans-shipment or temporary warehousing in such territories, provided that they remain under the surveillance of the customs authorities in the country of transit or warehousing and do not undergo operations other than unloading, reloading, or any operation designed to preserve them in good condition. 2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing Party by the production of:
- a) a single transport document covering the passage from the exporting Party through the country of transit; or
- b) a certificate issued by the customs authorities of the country of transit:
- 1) giving an exact description of the products;
6. i1) stating the dates of unloading and reloading of the products and, where applicable, the'names of the ships, or the other means of transport used; and
7. ili) certifying the conditions under which the products remained in the transit country ; or
8.

ARTICLE 13 Exhibitions

str. 781. Originating products, sent for exhibition in a country other than Turkey or Chile on importation from the provisions of this Agreement provided it is shown to the satisfaction of the Customs Authorities of the importing Party that:
2. sd ss piso s x country in which the exhibition is held and has exhibited them there;
- b) the products have been sold or otherwise disposed of by that exporter to a person in Turkey or in Chile;
- c) the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition;
- d) · the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition; and
6. e)the products have remained during the exhibition under customs.control. 2. A proof of origin must be issued or made out in accordance with the provisions of Title V and submitted to the customs authorities of the importing Party in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the conditions under which they have been exhibited may be required. 3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign products.

DRAWBACKOREXEMPTION

ARTICLE 14

str. 79- 1， Non-originating materials used in the manufacture of products originating in Turkey or in Chile for which a proof of origin is issued or made out in accordance with the provisions of Title V shall not be subject in Turkey or in Chile to drawback of, or exemption from, customs duties of whatever kind. 2. The prohibition in paragraph 1 shall apply to any arrangement for refund, remission or non-payment, partial or complete, of customs duties applicable in Turkey or in Chile to materials used in the manufacture, where such refund; remission or non-payment applies, expressly or in effect, when products obtained from the said materials are exported and not when they are retained for home use there. 3. The exporter of products covered by a proof of origin shall be prepared to submit at any time, upon request from the Customs Authorities, all appropriate documents proving that no drawback has been obtained in respect of the nonoriginating materials used in the manufacture of the products concerned and that all customs applicable to such materials have actually been paid. 4. The provisions of paragraphs 1 to 3 shall also apply in respect of packaging within the meaning of paragraph 2 of Article 7, accessories, spare parts and tools within the meaning of Article 8 and products in a set within the meaning of Article 9 when such items are non-originating. - no pos o rie hs tn I sd go sid a which are of the kind to which this Agreement applies. Furthermore, they shall not preclude the application of an export refund system for agricultural products, applicable upon export in accordance with the provisions of this Agreement.

PROOFOFORIGIN

ARTICLE 15

General Requirements 1. Products originating in Turkey or in Chile shall, on importation into another Party benefit from the preferential treatment under this Agreement upon submission of the following proofs of origin:

str. 802. III; or
- b) in the cases specified in paragraph 1 of Article 20, a declaration, subsequently referred to as the "invoice declaration", given by the exporter on an invoice, a delivery note or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified; the text of the invoice declaration appears in Appendix IV. 2. Notwithstanding paragraph 1, originating products within the meaning of this Annex shall, in the cases specified in Article 25, benefit from this Agreement without it being necessary to submit any of the documents referred to above.

ARTICLE 16 Procedure for the Issue of a Movement Certificate EUR.1

str. 801. A movement certificate EUR.1 shall be issued by the competent authorities of the exporting Parties on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorised representative. 2. The procedure for the completion of both the movement certificate EUR.1 and the application form is set out in Appendix IHI. 3. The exporter applying for the issue of a movement certificate EUR.1 shall be prepared to submit at any time, at the request of the competent authority of the exporting Party where the movement certificate EUR.1 is issued, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Annex. 4. 4.A movement certificate EUR.1 shall be issued if the products concerned can be considered as products originating in Turkey or in Chile and fulfil the other requirements of this Annex. 5.

str. 815. The issuing authorities shall take any steps necessary to verify the originating status of the products and the fulfilment of the other requirements of this saccountsoranyothercheck considered appropriate. The issuing authorities shall also ensure that the forms referred to in paragraph 2 are duly completed. In particular, they shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions. 6. The date of issue of the movement certificate EUR.1 shall be indicated in Box 11 of the certificate. 7. When the exporter in Chile repeatedly provided false information or of new certificates of origin. 8. The Parties shall seek the possibility to implement a system of electronic signature. The Sub-Committee on Customs and Rules of Origin will evaluate a time frame for its implementation.

Movement Certificate EUR.1 Issued Retrospectively

str. 811. Notwithstanding paragraph 7 of Article 16, a movement certificate EUR.1 may also be issued after exportation of the products to which it relates if:
2. a)it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances; or
- b) it is demonstrated to the satisfaction of the competent authorities that a movement certificate EUR.1 was issued but was not accepted at importation for technical reasons. 2. For the implementation of paragraph 1, the exporter must indicate in his application the place and date of exportation of the products to which the movement certificate EUR.1 relates, and state the reasons for his request. 3. The competent authorities may issue a movement certificate EUR.1 retrospectively only after verifying that the information supplied in the exporter's application agrees with that in the corresponding file. 4. Movement certificates EUR.1 issued retrospectively must be endorsed with one of the following phrases:

str. 82Turkish"SONRADAN VERILMISTIR" Spanish"EMITIDOA POSTERIORI"

English"ISSUED RETROSPECTIVELY"

5. The endorsement referred to in paragraph 4 shall be inserted in the "Remarks" box of the movement certificate EUR.1.

ARTICLE 18

Issue of a Duplicate Movement Certificate EUR.1

str. 821. In the event of theft, loss or destruction of a movement certificate EUR.1, the exporter by stating the reasons for his request may apply to the competent authorities which issued it for a duplicate made out on the basis of the export documents in their possession. 2. The duplicate issued in this way must be endorsed with one of the following words:

Turkish "IKINCI NUSHADIR" Spanish"DUPLICADO" English"DUPLICATE"

3. The endorsement referred to in paragraph 2 shall be inserted in the "Remarks" box of the duplicate movement certificate EUR.1. 4. The duplicate, which must bear the date of issue of the original movement certificate EUR.1, shall take effect as from that date.

Issue of Movement Certificates EUR.1 on the Basis of a Proof of OriginIssued or Made Out Previously

str. 83When originating products are placed under the control of a customs office in Turkey or in Chile, it shall be possible to replace the original proof of origin by one these products elsewhere within Turkey or Chile. The replacement movement certificate(s) EUR.1 shall be issued by the customs office of first entry in Turkey or in Chile under whose control the products are placed.

ARTICLE 20

Conditions for Making Out an Invoice Declaration

str. 831. An invoice declaration as referred to in subparagraph 1 (b) of Article 15 may be made out:
2. containing originating products whose total value does not exceed EUR 6,000. 2. An invoice declaration may be made out if the products concerned can be considered as products originating in Turkey, or in Chile and fulfil the other requirements of this Annex. 3. The exporter making out an invoice declaration shall be prepared to submit at any time, at the request of the customs authorities or competent authorities of the exporting Party, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Annex,
4. An invoice declaration shall be made out by the exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, the declaration, the text of which appears in Appendix IV. Specific requirements as for the making out of an invoice declaration are set out in Appendix IV. 5. Invoice declarations shall bear the original signature of the exporter in manuscript. However, an approved exporter within the meaning of Article 21 shall not be required to sign such declarations provided that he gives the
7. competent authorities of the exporting Party a written undertaking that he accepts full responsibility for any invoice declaration which identifies him as if it had been signed in manuscript by him. 8.

str. 846. An invoice declaration may be made out by the exporter when the products to which it relates are exported, or after exportation on condition that it is

Approved Exporter

str. 841. The competent authority of the exporting Party may authorise any exporter, hereinafter referred to as "approved exporter", who makes frequent shipments of originating products under this Agreement to make out invoice declarations irrespective of the value of the products concerned. An exporter seeking such authorization must offer to the satisfaction of the competent authorities all guarantees necessary to verify the originating status of the products as well as the fulfilment of the other requirements of this Annex. 2. The competent authorities may grant the status of approved exporter subject to any conditions which they consider appropriate. 3. The competent authorities shall grant to the approved exporter an authorization number which shall appear on the invoice declaration. 4. The competent authorities shall monitor the use of the authorization by the approved exporter. 5. The competent authorities may withdraw the authorization at any time. They shall do so where the approved exporter no longer offers the guarantees referred to in paragraph 1, no longer fulfils the conditions referred to in paragraph 2 or otherwise makes an incorrect use of the authorization.

ARTICLE 22

Validity of Proof of Origin

str. 841. A proof of origin as referred to in paragraph 1 of Article 15 shall be valid for 10 months from the date of issue in the exporting Party, and must be submitted within the said period to the customs authorities of the importing Party. 2. Proofs of origin which are submitted to the customs authorities of the importing Party after the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit these documents by the final date set is due to exceptional circumstances. 3.

str. 85Party may accept the proofs of origin where the products have been submitted before the said final date. 4. In accordance with the internal legislation of the importing Party, preferential treatment may also be granted, where applicable by repayment of duties, within a period of two years from the date of acceptance of the import declaration, where a proof of origin is produced indicating that the imported goods were at that date eligible for preferential tariff treatment.

Submission of Proof of Origin

str. 851. Proofs of origin shall be submitted to the customs authorities of the importing Party in accordance with the procedures applicable in that Party. The said authorities may require a translation of a proof of origin which can be drawn up by the importer. They may also require the import declaration to be accompanied by a statement from the importer to the effect that the products meet the conditions required for the implementation of this Agreement. 2. The requirements mentioned in paragraph 1 relating to translation and the with a view to clarifying the submitted information or to ensuring that the importer endorses the full responsibility for the declared origin.

ARTICLE 24 Importation by Instalments

str. 85s o customs authorities of the importing Party, dismantled or non-assembled products within the meaning of General Rule 2(a) of the Harmonized System classified within Sections XVI and XVII or headings 7308 and 9406 of the Harmonized System are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.

ARTICLE25 Exemptions fromProof of Origin

str. 861. Products sent from private persons to private persons or forming part of travelers' personal luggage shall be admitted as originating products without requiring the submission of a proof of origin, provided that such products are such a declaration. In the case of products sent by post, this declaration can be made on the customs declaration CN22/CN23 or other certificates established by the Universal Postal Union, or on a sheet of paper annexed to that document. 2. Imports which are occasional and consist solely of products for the personal use of the recipients or travelers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is in view. 3. Furthermore, the total value of these products shall not exceed EUR 500, in the the case of products forming part of travelers' personal luggage.

ARTICLE 26 Supporting Documents

str. 86The documents referred to in paragraph 3 of Article 16 and paragraph 3 of Article 20 used for the purpose of proving that products covered by a movement certificate EUR.1 or an invoice declaration can be considered as products originating in Turkey, or in Chile and fulfil the other requirements of this Annex may consist inter alia of the following:

- a（ direct evidence of the processes carried out by the exporter or supplier to obtain the goods concermned, contained for example in his accounts or internal book-keeping;
- b) documents proving the originating status of materials used, issued or made out in Turkey or in Chile where these documents are used in accordance with the internal legislation;
- c) documents proving the working or processing of materials in Turkey or in Chile, issued or made out in Turkey or in Chile, where these documents are used in accordance with the intermal legislation;
- d) movement certificates EUR.1 or invoice declarations proving the originating status of materials used, issued or made out in Turkey or in Chile in accordance with thisAnnex.

ARTICLE27

str. 871. The exporter applying for the issue of a movement certificate EUR.1 shall keep for three years the documents referred to in paragraph 3 of Article 16. 2. The exporter making out an invoice declaration shall keep for three years a copy of this invoice declaration as well.as the documents referred to in paragraph 3 of Article 20. 3. The competent authorities of the exporting Party issuing a movement certificate EUR.1 shall keep for three years the application form referred to in paragraph 2 of Article 16. 4. The customs authorities in Turkey shall keep for at least three years the movement certificates EUR.1 and the invoice declarations submitted to them into importation. The customs authorities of Chile must have at their disposal for three years the movement certificates EUR.1 and the invoice declarations submitted to them into importation.

ARTICLE28 Discrepancies and Formal Errors

str. 871. The discovery of slight discrepancies between the statements made in the proof of origin and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto render the proof of origin null and void, if it is duly established that this document does correspond to the products submitted. 2. Obvious formal errors such as typing errors on a proof of origin should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.

ARTICLE29 Amounts Expressed in Euro

str. 881. For the application of the provisions of subparagraph 1 (b) of Article 20 and paragraph 3 of Article 25 in cases where products are invoiced in a currency paragraphs 3 and 7 by the Parties. 2. A consignment shall benefit from the provisions of subparagraph 1 (b) of Article 20 or paragraph 3 of Article 25 by reference to the currency in which the invoice is drawn up, according to the amount fixed by the Party concerned. 3. The amounts to be used in any given national currency shall be the equivalent in that currency of the amounts expressed in euro as at the first working day of October. They shall apply them from 1 January the following year. - A Party may round up or down the amount resulting from the conversion into its national currency of an amount expressed in euro. The rounded-off amount may not differ from the amount resulting from the conversion by more than 5 per cent. A Party may retain unchanged its national currency equivalent of an amount expressed in euro if, at the time of the annual adjustment provided for in paragraph 3, the conversion of that amount, prior to any rounding-off, results in an increase of less than 15 per cent in the national currency equivalent. The national currency equivalent may be retained unchanged if the conversion would result in a decrease in that equivalent value. 5. The amounts expressed in euro shall be reviewed by the Joint Committee at the request of Turkey or of Chile. When carrying out this review, the Joint Committee shall consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in euro. 6. The equivalent of the local currency will be informed at the Sub-Committee on Customs and Rules of Origin or every two years, in accordance with paragraph 3.

Mutual Assistance 1. The competent authorities of Turkey and of Chile shall provide each other, with specimen impressions of stamps used for the issue of movement certificates EUR.1 and with the addresses of the authority responsible for verification process.

str. 892. In order to cnsure the proper application of this Annex, Turkey and Chile shall assist cach other, through their respective administrations, in checking the authenticity of the movement certificates EUR.1 or the invoice declarations and the correctness of the information given in these documents.

ARTICLE 31 Verification of Proofs of Origin

str. 891. whenever the customs authorities of the importing Party have reasonable doubts as to the authenticity of such documents, the originating status of the products concerned or the fulfilment of the other requirements of this Annex. 2. For the purposes of implementing the provisions of paragraph 1, the customs and the invoice, if it has been submitted, the invoice declaration, or a copy of s e s where appropriate, the reasons for the enquiry. Any documents and information obtained suggesting that the information given on the proof of origin is incorrect shall be forwarded in support of the request for verification. 3. The verification shall be carried out by the competent authorities of the exporting Party. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate. 4. If the customs authorities of the importing Party decide to suspend the granting of preferential treatment to the products concerned while awaiting the results of the verification, release of the products shall be offered to the importer subject to any precautionary measures judged necessary. 5.

str. 905. The customs authorities requesting the verification shall be informed of the clearly whether the documents are authentic and whether the products no o sd se pio q n fulfil the other requirements of this Annex. 6. If in cases of reasonable doubt there is no reply within 10 months of the date of the verification request or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the products, the requesting customs authorities shall, except in .exceptional circumstances, refuse entitlement to the preferences.

Resolution of Disputes

str. 901. Where disputes arise in relation to the verification procedures of Article 31 which cannot be settled between the customs authorities requesting verification and the competent authorities responsible for carrying out this verification or where they raise a question as to the interpretation of this Annex, they shall be submitted to the Sub-Committee on Customs and Rules of Origin. 2. In all cases the settlement of disputes between the importer and the customs authorities of the importing Party shall be under the legislation of the said Party.

ARTICLE33 Penalties

str. 90Penalties may be imposed in accordance with internal legislation for infringement to provisions of this Annex. In particular, penalties shall be imposed on any person who draws up, or causes to be drawn up, a document which contains incorrect information for the purpose of obtaining a preferential treatment for products.

Confidentiality

str. 91confidential the information submitted under the provisions of this Annex by a person or authority of the other Party when such information is designated by that Party as confidential. Accordingly, access to the said information may be refused where disclosure would undermine the protection of the commercial interest of the

ARTICLE 35 Free Zones

str. 911. Turkey and Chile shall take all necessary steps to ensure that products traded under cover of a proof of origin which in the course of transport use a free zone situated in their territory, are not substituted by other goods and do not undergo handling other than normal operations designed to prevent their deterioration. 2. By means of an exemption from paragraph 1, when products originating in Turkey or in Chile are entered into a free zone under cover of a proof of origin and undergo treatment or processing, the authorities concerned shall issue a new movement certificate EUR.1 at the exporter's request, if the treatment or processing undergone is in conformity with the provisions of this Annex.

ARTICLE 36 Amendments .to this Annex

str. 91The Joint Committee may decide to amend the provisions of this Annex.

ARTICLE 37 ExplanatoryNotes

str. 91The Parties shall agree on the "Explanatory Notes" regarding the interpretation, application and administration of this Annex.

Transitional Provision for Goods inTransitorStorage

str. 91provisions of this Annex and which on the date of entry into force of this customs warehouses or in free zones, subject to the submission to the customs authorities of the importing Party, within 10 months of the said date, of a movement certificate EUR.1 issued retrospectively by the competent authorities of the exporting Party together with the documents showing that the goods have been transported directly in accordance with the provisions of Article 12.

ARTICLE39 Customs Cooperation

str. 91in Customs Matters through their respective customs authorities.

Note 1:

str. 91The list sets out the conditions required for all products to be considered as sufficiently worked or processed within the meaning of Article 5 of this Annex.

Note 2:

str. 91- 2.1. The first two columns in the list describe the product obtained. The first column gives the heading number or chapter number used in the Harmonised System and the second column gives the description of goods used in that system for that heading or chapter. For each entry in the first two columns, a rule is specified in column 3 or 4. Where, in some cases, the entry in the first column is preceded by an "ex", this signifies that the rules in column 3 or 4 apply only to the part of that heading as described in column 2. - 2.2. Where several heading numbers are grouped together in column 1 or a chapter number is given and the description of products in column 2 is therefore given in general terms, the adjacent rules in column 3 or 4 apply to all products which, under the Harmonised System, are classified in headings of the chapter or in any of the headings grouped together in column 1. - 2.3. Where there are different rules in the list applying to different products within a heading, each indent contains the description of that part of the heading covered by the adjacent rules in column 3 or 4.

TOTHELISTINAPPENDIXII - 2.4. Where, for an entry in the first two columns, a rule is specified in both columns 3 and 4, the exporter may opt, as an alternative, to apply either the rule set out in column 3 or that set out in column 4. If no origin rule is given in column 4, the rule set out in column 3 is to be applied.

str. 93- 3.1. The provisions of Article 5 of this Annex, concerning products having acquired originating status which are used in the manufacture of other products, shall apply, regardless of whether this status has been acquired inside the factory where these products are used or in another factory in Turkey or in Chile.

Example:

str. 93An engine of heading 8407, for which the rule states that the value of the non-originating materials which may be incorporated may not exceed 40% of the ex-works price, is made from "other alloy steel roughly shaped by forging' of heading ex 7224.

n - e n p s s already acquired originating status by virtue of the rule for heading ex 7224 in the list. The forging can then count as originating in the value-calculation for the engine, regardless of whether it was produced in the same factory or in another factory in Turkey. The value of the non-originating ingot is thus not taken into account when adding up the value of the non-originating materials used. - 3.2. The rule in the list represents the minimum amount of working or processing required, and the carrying-out of more working or processing also confers originating status; conversely, the carrying-out of less working or processing
- cannot confer originating status. Thus, if a rule provides that non-originating material, at a certain level of manufacture, may be used, the use of such material at an earlier stage of manufacture is allowed, and the use of such material at a later stage is not.

str. 94The rule for fabrics of headings 5208 to 5212 provides that natural fibres may be used and that chemical materials, among other materials, may also be used. This does not mean that both have to be used; it is possible to use one or the Other, or both. - 3.5. Where a rule in the list specifies that a product must be manufactured from a particular material, the condition obviously does not prevent the use of other materials which, because of their inherent nature, cannot satisfy the rule. (See also Note 6.2 below in relation to textiles).

str. 94The rule for prepared foods of heading 1904, which specifically excludes the use of cereals and their derivatives, does not prevent the use of mineral salts, chemicals and other additives which are not products from cereals. <!-- formula-not-decoded -->

However, this does not apply to products which, although they cannot be manufactured from the particular materials specified in the list, can be produced from a material of the same nature at an earlier stage of manufacture.

str. 95In the case of an article of apparel of ex Chapter 62 made from non-woven materials, if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth - even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn -- that is, the fibre stage. - 3.6. Where, in a rule in the list, two percentages are given for the maximum value of non-originating materials that can be used, then these percentages may not be added together. In other words, the maximum value of all the nonoriginating materials used may never exceed the higher of the percentages given. Furthermore, the individual percentages must not be exceeded, in

Note 4:

str. 95- 4.1. The term "'natural fibres" is used in the list to refer to fibres other than artificial or synthetic fibres. It is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, includes fibres which have been carded, combed or otherwise processed, but not spun. - s , headings 5002 and 5003, as well as wool-fibres and fine or coarse animal hair of headings 5101 to 5105, cotton fibres of headings 5201 to 5203, and other vegetable fibres of headings 5301 to 5305.

str. 96- are used in the list to describe the materials, not classified in Chapters 50 to 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns. - 4.4. The term "man-made staple fibres" is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of headings 5501 to 5507.

Note 5:

str. 96- 5.1. Where, for a given product in the list, reference is made to this Note, the materials used in the manufacture of this product and which, taken together, represent 10% or less of the total weight of all the basic textile materials used. (See also Notes 5.3 and 5.4)
- 5.2. However, the tolerance mentioned in Note 5.1 may be applied only to mixed products which have been made from two or more basic textile materials.

str. 97The following are the basic textile materials:

- -silk,
- -wool,
- --coarse animal hair,
- --fine animal hair,
- -horsehair,
- -cotton,

- -paper-making materials and paper,

str. 98--synthetic man-made staple fibres of poly(phenylene sulphide),
- -synthetic man-made staple fibres of poly(vinyl chloride),
- -other synthetic man-made staple fibres,
- -artificial man-made staple fibres of viscose,
- -other artificial man-made staple fibres,
- whether or not gimped,
- -- yarn made of polyurethane segmented with flexible segments of polyester, whether or not gimped,

-products of heading 5605 (metallised yarn) incorporating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film,

- --other products of heading 5605.

Example:

str. 98A yarn, of heading 5205, made from cotton fibres of heading 5203 and synthetic staple fibres of heading 5506, is a mixed yarn. Therefore, non- originating synthetic staple fibres which do not satisfy the origin-rules (which require manufacture from chemical materials or textile pulp) may be used. provided that their total weight does not exceed 10% of the weight of the yarn.

. Example:

str. 99Tufted textile fabric, of heading 5802, made from cotton yarn of heading 5205 and cotton fabric of heading 5210, is a only mixed product if the cotton fabric is itself a mixed fabric made from yarns classified in two separate headings, or if the cotton yarns used are themselves mixtures.

Example:

str. 99If the tufted textile fabric concerned had been made from cotton yarn of heading 5205 and synthetic fabric of heading 5407, then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is, accordingly, a mixed product. - 5.3. In the case of products incorporating "yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped", this tolerance is 20% in respect of this yarn. -

str. 1005.4. In the case of products incorporating "strip consisting of a core of aluminium of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film", this tolerance is 30% in respect of this strip.

Note 6:

str. 100- 6.1. Where, in the list, reference is made to this Note, textile materials (with the. exception of linings and interlinings), which do not satisfy the rule set out in the list in column 3 for the made-up product concerned, may be used, provided that they are classified in a heading other than that of the product and that their value does not exceed 8% of the ex-works price of the product. - 6.2. Without prejudice to Note 6.3, materials, which are not classified within Chapters 50 to 63, may be used freely in the manufacture of textile products, whether or not they contain textiles.

Example:

str. 100If a rule in the list provides that, for a particular textile item (such as trousers), yarn must be used, this does not prevent the use of metal items, such as buttons, because buttons are not classified within Chapters 50 to 63. For the same reason, it does not prevent the use of slide-fasteners, even though slide. fasteners normally contain textiles. - 6.3. Where a percentage-rule applies, the value of materials which are not classified within Chapters 50 to 63 must be taken into account when calculating the value of the non-originating materials incorporated.

- 7.1. For the purposes of headings ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, the "'specific processes" are the following:

str. 102(b)

- 7.2. For the purposes of headings 2710, 2711 and 2712, the "specific processes' are the following:

- (a) vacuum-distillation;

- (c) cracking;

- (d) reforming;

- (e) extraction by means of selective solvents;

- (f) the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite;

- (g) polymerisation;

- (h) alkylation;

- (i) isomerisation;

- () in respect of heavy oils of heading ex 2710 only, desulphurisation with hydrogen, resulting in a reduction of at least 85% of the sulphur-content of the products processed (ASTM D 1266-59 T method);

- (k) in respect of products of heading 2710 only, deparaffining by a process other than filtering;

See introductory note7.4. -

str. 1031) in respect of heavy oils of heading ex 2710 only, treatment with hydrogen, at a pressure of more than 20 bar and a temperature of more than 250 °C, with the use of a catalyst, other than to effect desulphurisation, when the hydrogen constitutes an active element in a chemical reaction. The further treatment, with hydrogen, of lubricating oils of heading ex 2710 (e.g. hydrofinishing or not, however, be deemed to be a specific process;
- (m) in respect of fuel oils of heading ex 2710 only, atmospheric distillation, on condition that less than 30% of these products distils, by volume, including losses, at 300 °C, by the ASTM D 86 method;
- (n) in respect of heavy oils other than gas oils and fuel oils of heading ex 2710 only, treatment by means of a high-frequency electrical brush-discharge;
- (0) in respect of crude products (other than petroleum jelly, ozokerite, lignite wax or peat wax, paraffin wax containing by weight less than 0.75% of oil) of heading ex 2712 only, de-oiling by fractional crystallisation. - 7.3. For the purposes of headings ex 2707, 2713 to 2715, ex.2901, ex 2902 and ex 3403, simple operations, such as cleaning, decanting, desalting, waterseparation, filtering, colouring, marking, obtaining a sulphur-content as a result of mixing products with different sulphur-contents, or any combination of these operations or like operations, do not confer origin. - s ssnd n a e t (other than topping) by a continuous or batch process employed in industrial installations using distillates of subheading Nos 2710 11 to 2710 99, 2711 11, Jo nd e go audd u 1o) 67 17 pue 17 1z 61 17 0 71 17 99% or more) to obtain:
1.

str. 104Isolated high-purity hydrocarbons (90% or more in the case of olefins and 95% or more in the case of other hydrocarbons), mixtures of isomers having the same organic composition being regarded as isolated hydrocarbons; admissible, but this restriction does not apply in any instance where the process consists in the

only those process by means of which at least three different products are obtained are

str. 106separation of isomers. In so far this concerns xylenes, ethylbenzene is included with xylene isomers;

2.

str. 107Products of subheading Nos 2707 10 to 2707 30, 2707 50 and 2710 11 to 271099:
2.

str. 108(a)with no overlapping of the final boiling point of one fraction and the initial boiling point of the succeeding fraction and a difference of not more than 60 °C between the temperatures at which 5 and 90% by the

str. 110volume (including losses) distil by the ASTM D 86-67 method (reapproved 1972);
3.

str. 111(b) with an overlapping of the final boiling point of one fraction and the initial boiling point of the succeeding

str. 112fraction and a difference of not more than 30 °C between the temperatures at which 5 and 90% by volume

str. 113(including losses) distil by the ASTM D 86-67 method (reapproved 1972).

LIST OFWORKING ORPROCESSINGREQUIREDTOBE CARRIED OUT ONNON-ORIGINATINGMATERIALSINORDERFORTHEPR

str. 115ODUCT MANUFACTUREDTOOBTAINORIGINATINGSTATUS

||

str. 149manufacture of woven fabrics ofakind used in paper-making machinery.

| [[DOC_PAGE_MARKE

str. 162| 8208 Knives and cutting blades, Manufacture: formachines or for mechanical appliances from materialsofany heading. except that of the product, and in which thevalue of all the materials used does not cxceed 40%of the ex-works price of ex 8211 Knives with cutting blades, Manufacture from materials of serrated or not (including any heading,except that of the pruning knives),other than product.However,knife blades knives of heading 8208 and handles of base metal may be used 8214 Other articles of cutlery (for Manufacture from materials of example, hair clippers , any heading, except that of the butchers' or kitchen cleavcrs, product. However, handles of choppers and mincing base metal may be used knives, paper knives); manicure or pedicure sets and instruments (including nail files) 8215 Spoons, forks, ladles, Manufacture from materials of skimmers,cake-servers,fish- any heading,cxccpt that of the knives, butter-knives, sugar product.

str. 164However, handles of tongs and similar kitchen or base metal may be used tableware ex Chapter 83 Miscellancous articles of Manufacture from materials of base metal; except for: any heading, except that of the product cx 8302 Other mountings, fitings and Manufacture from materials of similar articles suitable for any heading,except that of the buildings, and automatic product. However, other door closers matcrials of heading 8302 may be used,provided that their total value docs not exceed 20% of the ex-worksprice of the product. cx8306 Statuettes and other Manufacture from matcriais of ornaments,of base metal any heading, except that of the product. However, other materials of heading8306 may be used,provided that their total value does not excced

str. 16530% of the ex-works price of the product |

str. 169| cx Chapter 85 Electrical machinery and Manufacture: Manufacture in which the value equipment and parts thereof; of all the materials used does punos recorders and from materialsofany not exceed 30% of the ex-works reproducers, television image heading, except that of the price of the product and sound recorders and produet, and reproducers, and parts and accessories of such articles; in which thevalue of all the except for: materials used does not exceed 40% of the cx-works price of 8501 Electric motors and Manufacture in which: Manufacture in which the value generators (excluding of all the materials used does generating sets) ：thevalue of all the materials not exceed 30%of the ex-works used does not exceed 40% of price of the product the ex-works price of the product, and within the above limit, the value of all the materials of heading 8503useddoesnot exceed 10% of the ex-works price of the product 8502 Electric generating scts and Manufacture in which: Manufacture in which the value rotary converters of all the materials used does thevalue of all the materials not exceed 30% of the ex-works used does not exceed 40% of price of the product the ex-works price of the product, and within the above limit, the value of all the materials of headings 8501 and 8503 used does not exceed 10% of the ex- works price of the product ex8504 Power supply units for Manufacture in which the value autonatic data-processing of all thematerials used does machines not exceed 50% of the ex-works price of the product ex8509 Vacuum cleaners, including Manufacture In which thevaluc dry and wet vacuum ofall thematerialsused does cleaners; floor polishers not exceed 40% of the ex-works price of the product 8517 Electrical apparatus for line Manufacture in

str. 171which the value telephony or line telegraphy, of all the materials used does including line telephone sets not exceed50% of the cx-works with cordless handsets and price of the product telecommunication apparatus for carrier-current line systems or for digital line systems; videophoncs |

str. 175| 8710 Tanks and other armoured Manufacture: Manufacture in which thevalue fighting vehicles,motorised, of all the materials used does whether or not fitted with from materialsofany not cxceed 30%of the ex-works weapons, and parts of such heading, except that of the price of the product vehicles product, and inwhich thevalue of all the materials used docs not exceed 40% of the ex-works price of 8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor,with or without side-cars; side- cars:. -With reciprocating internal combustion piston engine of a cylinder capacity: -- Not exceeding 50 cm?

str. 176Manufacture in which: Manufacture in which the value -the value of all the materials of all the materials used does useddoesnotexceed 40%of not exceed 20% of the ex-works the ex-worksprice of the price of the product product, and the value of all the non- originating materials used does not exceed the value of all the originating materials used -- Exceeding 50 cm Manufacture in which: Manufacture in which the value of all the materials used does -the value of all thematerials notexceed25%of the ex-works used does not exceed 40% of price of the product the ex-works price of the product, and -the value of all the non- originating materials used does not exceed the value of all the originating materials used -Other Manufacture in which: Manufacture inwhich thevalue of all the materials used does thevalueof all the materials not exceed 30% of the ex-works used does'not exceed 40% of price of the product the ex-works price of the product, and thevalueof all the non- originating materials used does not exceed the value of all the originating materials used ex8712 Bicycles without

str. 177Manufacture from materials of fManufacture inwhich thevalue bearings any heading, except those of of all the materials used does heading 8714 not exceed 30% of the ex-works price of the product |

str. 180apparatus excludinginstruments and

9015, 9028 or 9032

Instruments and analysis

for physical chemical

(for polarimeters, refractometers,

analysis

Manufacture in which the value of all the materials used does not exceed 40%of the ex-works price of the product example,

spectrometers, gas or smoke apparatus);

measuring instruments and apparatus for

viscosity, checking

J0

porosity, the like; instruments and

expansion, surface tcnsion or apparatus for measuring or

sound or light (including checking quantities of heat,

exposure meters);

microtomes

Gas, liquid or electricity supply or production meters, including calibrating meters therefor:

-Parts and accessorics

-Other

Revolution counters, production counters, taximcters, mileometers, pedometers andthe like; speed indicators and tachometers,other than those ofheading 9014 or 9015; stroboscopes

Manufactureinwhich thevalue of all the materials used docs

not exceed 50% of the ex-works price of the product

Manufacture in which the value not exceed 40% of the ex-works

of all the materials used does price of the product

Manufacture in which:

- the value of all the materials used does not cxceed 40% of the cx-works price of the product, and
- the value of all the nonoriginating materials used docs not exceed the value of all the originating materials used

Manufacture in which the value of all the materials used does not exceed 40%of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 30% of the ex-works price of the product

str. 182| 0116 Completewatchorclock Manufacture in which: Manufacture inwhich the value movements,unassembled or of all the materials used does partly asscmbled (movement the value of all the materials not exceed30%of the ex-works scts); incomplete watch or used does not exceed 40% of price of the product clock movements, the ex-works priceofthe assembled; rough watch or product, and clockmovements within the above limit, thc value of all the materials of price of the product 1116 Watchcases and parts Manufacture: Manufacture in which the value thercof of all the materials used does uoy materialsofany not exceed 30% of the ex-works heading. cxcept that of the price of the product product, and in which the yalue of all the materials used does not cxceed 40% of the cx-works price of the product 9112 Clock cases and cases of a Manufacture: Manufacture in which the value similar type for other goods of all the materials used does of this chapter, and parts from materials of any not exceed 30% of the ex-works thereof heading, except that of the price of theproduct product, and -in which thevalue of all the materials used docs not exceed 40% of the ex-works price of the product 9113 Watch straps, watch bands and watch bracelets, and parts thereof: -Of base metal,whether or Manufacture in which the value not gold- or silver-plated, or of all the materials used does of metal clad with precious not exceed 40% of the ex-works metal price of the product Other Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of theproduct Chapter 92 Musical instruments; parts Manufacture in which the value and accessories of such of all the materials used does articles not exceed 40% of the ex-works price of the product Chapter93 Arms and ammunition; parts Manufacture in which the value and accessories thereof of all the materials used does not exceed 50% of the ex-works price of the product |

Appendix II to Annex V

S

str. 185PECIMENOFMOVEMENTCERTIFICATEEUR.1ANDAPPLICATION FORAMOVEMENTCERTIFICATEEUR.1

Printing instructions

str. 1851. Each form shall measure 210 x 297 mm; a tolerance of up to minus 5 mm or plus 8 mm in the length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighing not less than 25 g/m . It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye. 2. The competent authorities of the Parties may reserve the right to print the each form must include a reference to such approval. Each form must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number, either printed or not, by which it can be identified.

Procedure for completion

str. 185The exporter or his authorized representative shall fill out both the movement certificate EUR.1 and the application form. These forms shall be completed in Turkish, Spanish or English in accordance with the provisions of the domestic law of the exporting Party. If they are hand-written, they shall be completed in ink in printed characters. The description of the products must be given in the box reserved for this purpose without leaving any blank lines. Where the box is not completely filled, a horizontal line must be drawn below the last line of the description, the empty space being crossed through.

str. 1861. Exporter(name,fulladdress,country）)

EUR.1 No.A 000.000

str. 186Seenotes overleafbeforecompleting thisfom

2. Certificateused inpreferential tradebetween

and

(insertappropriatecountries,groupofcountriesorterritories)

- 3.Consignee(name,fulladdress,country)(Optional)

4. Country,group of countriesor territory in which the productsare consideredas originating

- 5.Country,group of countries or territory of destination

6. Transport details(Optional)

- 7.Remarks

- 8.Item number;Marks and numbers;Number and kind of packages(1);Description of goods(2)

- 9.Gross mass(kg)or other measure (litres,m', etc.) - 10.Invoices (Optional)

11. CUSTOMSORCOMPETENTGOVERNMENTALAUTHORITY ENDORSEMENT

- 12.DECLARATIONBYTHEEXPORTER

I,the undersigned,declare that the goods desc- ribed abovemcet theconditionsrequiredforthe issue of this certificate. Declaration certified

Stamp

Export document(3)

Form. No

Place and date

Customs orcompetentgovemmentaloffice:

Issuingcountry or territory:

Place and date...

(Signature)

(Signature)

(1)Ifgoods arenot packedindicateumberofariclesor stateinbulasappropriatc. (2) Includes the taiff cassification of the gods at aheading 4 digits code) levecl.

str. 187- 13.REQUESTFORVERIFICATION,to:

14. RESULTOFVERIFICATION

Verification carried out shows that this certificate ()

- wasissuedby thecustomsofficeor the compctentgovermmental authorityindicatedandthattheinformationcontainedthereinis accurate. Verificationofthe authenticity andaccuracy of this certificate is requested

- 口 docs notmeet the requirements as to authenticity and accuracy (see remarks appended). (Placeandcdate)

(Place and date)

Stamp

Stamp

(Signature)

(Signature)

(）Insert Xin the appropriatebox. NOTES

1. The certificate must not contain erasures orwords written over one anoher.Any alterationsmstbemade by deleting the incorrectparticulars andaddinganynecessarycorrections.Any suchalterationmustbeinitialedbythe personwhocompleted the certificate andendorsedby the austoms authorities or the competent governmentalauthority oftheissuing country or territory. 2. No spaces must be left between the items entered on the certificate and cach item must be pteceded by anitem number.A horizontal line must be drawn immediately below the last item.Any unused space must he struck through in such a manner as tomake anylater additions impossible. 3. Goods must be described in accordance with commercial practice and with sufficicent detail to enable them to be identified. -

str. 188- Exporter(name,fulladdress,country)

EUR.1 No. A 000.000

str. 188Seenotesoverleaf beforecompleting thisform

2. Certificateused inpreferentialtradebetween

and

(insertappropriatecountries,groupofcountriesorterritories)

- 5.Country,group of countries or territoryof destination

- countries or territory in which theproducts are considered as originating

- 6.Transport details (Optional)

- 7.Remarks

- 8.Item number; Marks and numbers; Number and kind of packages (1); Description of goods (2)

- 9.Gross mass (kg) orother measure (litres, m², etc.) - 10.Invoices (Optional)

(1) If goods are not packed, indicate number of articlesorstate "In bulk" sappropriae. (2) Includes the taiffclassification of the goods ata hcading 4 digits code) level.

DECLARATIONBYTHEEXPORTER

str. 1891,theundersigned,exporterof thegoodsdescribedoverleaf

DECLARE

that the goods meet the conditions required for the issue of the aftached certificate; asfollows the circumstances which have enable thesegoods to meet the aboveconditions:

SPECIFY

SUBMIT

the following supporting documents 1:

UNDERTAKE

to submit, at the request of the appropriate authorities, any supporting evidence which these authorities may require for the purpose of issuing the attached certificate, and undertake, if required, to agree to any inspection of my accounts and to any check on the processes of manufacture of the above goods, carried out by the said authorities;

REQUEST

the issue of the attached certificate for these goods. (Place and date)

(Signature)

For examplemort documentsmovement certificates,invoicesmanufacturesclarations,tc.,referringto theproductsusedin manufacture or to the goods re-exported in the same state. (2) Origin of products to be indicated.

Specific requirements as for the making out of an invoice declaration

str. 190using one of the linguistic versions set out there and in accordance with the provisions of the domestic law of the exporting country. If the declaration is hand-written, it shall be written in ink in printed characters. The invoice declaration must be drawn up in accordance with the respective footnotes. The footnotes do not have to be reproduced.

Spanish version

str. 190El exportador de los productos incluidos en el presente documento (Autorizacion No . (') declara que, salvo indicacion en sentido contrario, estos productos gozan de un origen preferencial .. 2).

Turkish version

str. 190Isbu belge (Onay No: .. (l) kapsamindaki maddelerin ihracatcis1, aksi acikca eder.

English version

str. 190The exporter of the products covered by this document (Authorization No ... (5) declares that, except where otherwise clearly indicated, these products are of... preferential origin (2)

(Place and date)

......

(1) When the invoice declaration is made out by an approved exporter within the meaning of Article 21 of this Anex. the authorization number of the approved exporter must be entered in this space. When the invoice declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank. (3) These indications may be omited if the information is contained on the document itself. (4) See Article 20(5) of this Annex. In cases where the exporter is nt required to sign,the eemption of signature also implies the exemption of the name of the signatory.

The ex-works of a product shall include:

str. 191- the value of all supplied materials used in manufacture; and
- all costs (material costs as well as other costs) effectively incurred by the manufacturer. For example, the ex-works price of recorded video cassettes, records, discs, media-carrying computer software and other such products comprising an element of intellectual property rights shall as far as possible include all costs with regard to the use of intellectual property rights for the manufacture of the goods, paid for by the manufacturer, whether or not the holder of such rights has his seat or residence in the Party of production. No account shall be taken of commercial price reductions (e.g. for early payment, or large quantity deliveries).

Article 9 - Origin rule for sets

str. 191The origin rule for sets applies only to sets within the meaning of General Rule 3 for the interpretation of the Harmonised System. According to this provision each product of which the set is composed, with the value of the set, must fulfil the origin criteria for the heading under which the product would have been classified if it were a separate product and not included in a set regardless of the heading under which the whole set is classified in accordance with the text of the General Rule referred to above. These provisions remain applicable even if the 15 per cent tolerance is used for that product which under the text of the General Rule referred to above determines the classification of the whole set.

Article 14 -Drawback in cases of errors

str. 192Drawback or remission of duty can only be given in the case that a proof of origin has been wrongly issued or made out if the following three conditions have been met:

- (a) the wrongly issued or made out proof of origin is returned to the authorities in the country of export, or, as an alternative, a written statement is made by the
- authorities in the importing country that no preference has been or will be granted;
- (b) the products used in the manufacture would have been entitled to drawback or remission of duties under the provisions in force if a proof of origin had not been used to claim preference; and
- are met.

Article 16 - Documentary evidence for used goods

str. 192Proof origin may be issued also for used or any other goods where, because of a considerable time lapse between the date of production on the one hand and the date of exportation on the other hand, the usual supporting documents are no longer available, provided that:

- (a) the date of production or importation of the goods lies beyond that period of time during which, according to the respective legislation in the Party of exportation, records must be kept by traders;
- (b) the goods can be deemed to be originating on the grounds of other evidences, like declarations of the producer or any other trader, an expert's opinion, by marks on the goods or descriptions of them, etc. ; and
- （c）t there is no indication that the goods do not comply with the requirements of the origin rules.

Article 16 - Description of goods on movement certificate EUR.1

Cases of large consignments or generic description of goods

str. 192When the box, on the movement certificate EUR.1, provided for the description of the goods is insufficient to permit specification of the necessary particulars for identifying the goods, particularly in the case of large consignments, the exporter may specify the goods to which the certificate relates on attached invoices of the goods and, if necessary, additional commercial documents on condition that:

- (a) the invoices numbers are shown in Box 10 of the movement certificate EUR.1;
- attached to the certificate prior to presentation to customs or competent governmental authorities of the exporting Party; and
- (c) the competent authorities have stamped the invoice and additional commercial documents, officially attaching them to the certificates.

Article 16 - Goods exported by a customs clearance agent

str. 193A customs clearance agent may be allowed to act as the authorized representative of the person who is the owner of the goods or has a similar right of disposal over them,

Article 16 - Documents accompanying a movement certificate EUR.1

str. 193An invoice relating to goods exported under preference from the territory of one of the Parties and accompanying a movement certificate EUR.1 can be made out in a third country.

Article 17 - Technical reasons

str. 193A movement certificate EUR.1 may be rejected for 'technical reasons` because it was not made out in the prescribed manner. These are the cases which may give rise to subsequent presentation of a retrospectively-endorsed certificate and they include, by way of example, the following:

- -the movement certificate EUR.1 has been made out on a form other than the prescribed one (e.g. no guilloche background, differs significantly from the model in size or colour, no serial number, not printed in one of the officially-prescribed languages);
- one of the mandatory boxes (e.g. Box 4 on the EUR.1) has not been filled in, except for Box 8;
- tariff classification of the good at least at a heading (4 digits code) levell is not included in Box 8;
- the movement certificate EUR.1 has not been stamped and signed (i.e. in Box 11);
- the stamp used is a new one which has not yet been notified;
- the movement certificate EUR.1 is endorsed by a non-authorized authority;
- original;
- the entry in Box 5 refers to a country that does not belong to the Agreement (e.g. Israel or Cuba).

Actiontobetaken:

str. 193The document should be marked 'Document not accepted', stating the reason(s), and then retumed to the importer in order to enable him to get a new document issued retrospectively. The customs authorities, however, may keep a photocopy of the rejected document for the purposes of post-clearance verification or if they have grounds for suspecting fraud.

Article 20 -- Practical application of the provisions concerning invoice declaration

str. 194The following guidelines shall apply:

- covered by the invoice declaration should not be made on the declaration itself. However, this indication should appear on the invoice in a precise way soas to avoid any misunderstandings;

str. 194- (b) declarations made on photocopied invoices are acceptable provided such declarations bear the signature of the exporter under the same conditions as the original. Approved exporters who are authorized not to sign invoice declarations
- (c) an invoice declaration on the reverse of the invoice is acceptable;
- (d) the invoice declaration may be made on a separate sheet of the invoice provided that the sheet may be considered as part of the invoice. A complementary form may not be used;
- (e) an invoice declaration made out on a label which is subsequently attached to the invoice is acceptable provided there is no doubt that the label has been affixed by the exporter. For example, the exporter's stamp or signature should cover both the label and the invoice.

Article 20 - Value basis for the issue and acceptance of invoice declarations madeoutby any exporter

str. 194The ex-works price may be used as the value basis for deciding when an invoice declaration can be used instead of a movement certificate EUR.1 in reference to the value limit laid down in Article 20(1)(b). If the ex-works price is used as the value basis, the importing Party shall accept invoice declarations made out by reference to that. In cases where there is no ex-works price owing to the fact that the consignment is supplied free of charge, the customs value established by the authorities of the Party of importation shall be considered as the basis for the value limit.

Article 21 -Approved exporter

str. 194The term 'exporter' may refer to persons or undertakings, regardless of whether they are producers or traders, as long as they comply with all the other provisions of s s xs within the meaning of Annex V. The status of approved exporter may be granted only after an exporter has submitted a written application.

str. 195When examining this, the competent authorities should give particular consideration to the following points:

- whether the exporter exports regularly here, rather than focusing on a given number of consignments or a particular sum, the competent authorities should
- whether the exporter is at all times in a position to supply evidence of origin for the goods to be exported. In this connection it is necessary to consider whether the exporter knows the current rules of origin and is in possession of all the documents proving origin. In the case of producers, the authorities must make sure that the undertaking's stock accounts allow identification of the origin of goods and, in the case of new undertakings, that the system they have installed will permit such identification. For operators who are traders only, examination should focus more specifically on their usual trade flows;

- whether, in the light of his past exporting record, the exporter offers sufficient guarantees concerning the originating status of the goods and the ability to meet all resulting obligations. Once an authorisation has been issued, exporters must:
- undertake to issue invoice declarations only for goods for which they hold all the necessary proof or accounting elements at the time of issue;
- assume full responsibility for the way the authorization is used, particularly for incorrect origin statements or other misuse of the authorization;
- assume responsibility for ensuring the person in the undertaking responsible for completing invoice declarations knows and understands the rules of origin;
- years from the date that the declaration was made;
- undertake to produce proof of origin to the competent authorities at any time, and allow inspections by those authorities at any time. The competent authorities ensure the continued compliance of the use of the authorization and may be carried out at intervals determined, if possible, on the basis of risk analysis criteria. The competent authorities must notify to each other the national numbering system used for designating authorized exporters.

Article 24 -Importation by instalments

str. 195An importer wishing to take advantage of the provisions of this Article must inform the exporter before the first instalment is exported that a single proof of origin for the complete product is required. In the event of each instalment being made up only of originating products and such instalments being accompanied by proofs of origin, those separate proofs of origin shall be accepted by the customs authorities of the importing Party for the instalments concerned, instead of a single proof of origin issued for the complete product.

Article 31 - Refusal of preferential treatment without verification

str. 196for the following reasons:

- the goods description box (Box 8 on EUR.1) is not filled in or refers to goods other than those presented;
- the proof of origin has been issued by a country which does not belong to the Agreement even if the goods originate in Turkey or in Chile (e.g. EUR.1 issued in Israel for goods originating in Chile);
- the time-limit on the movement certificate EUR.1 has expired for reasons other where the goods were presented before expiry of the time-limit;
- one of the mandatory boxes on the movement certificate EUR.1 bears traces of non-authenticated erasures or alterations (e.g. the boxes describing the goods or stating the number of packages, the Party of destination or the Party of origin);
- the proof of origin is produced subsequently for goods that were initially imported fraudulently;
- box 4 on. the movement certificate EUR.1 names a Party not party to the agreement under which preferential treatment is being sought.

Action to be taken:

str. 196The proof of origin should be marked Inapplicable'' and retained by the customs authorities to which it was presented in order to prevent any further attempt to use it. Without prejudice to legal actions initiated according to internal legislation, the customs authorities of the importing Party shall inform, where it is appropriate to do so, the competent authorities of the Party of exportation about the refusal without delay.

Article 31 - Time-limits for the verification of evidences of origin

str. 196No Party shall be obliged to answer a request for subsequent verification, as provided for in Article 31, received more than three years after the date of issue of a movement certificateEUR.l or invoicedeclaration

Appendix I -Introductory note 6.1

JOINTDECLARATION

str. 197Pursuant to Turkey's obligations stemming from its Customs Union with the European Community (EC), in case Chile and the EC make amendments to Annex III of the "Agreement Establishing an Association between the European Community and the Republic of Chile", Turkey and Chile shall, without delay, reflect these amendments to Annex V of this Agreement.