Canada-Chile Free Trade Agreement
Part Three bis - Chapter K bis - Government Procurement
Annex K bis-01.1-1
Central Level Entities
Schedule of Canada:
Thresholds:
Cdn $ 84,000 - Goods covered in Annex Kbis-01.1-3
Cdn $ 84,000 - Services covered in Annex Kbis-01.1-4
Cdn $ 9,400,000 - Construction Services covered in Annex Kbis-01.1-5
- 1. Department of Agriculture and Agri-Food
- 2. Canadian Food Inspection Agency
- 3. Department of Canadian Heritage
- 4. Office of the Coordinator, Status of Women
- 5. Parks Canada Agency
- 6. Department of Citizenship and Immigration
- 7. Immigration and Refugee Board
- 8. Department of the Environment
- 9. Department of Foreign Affairs and International Trade
- 10. Canadian International Development Agency (on its own account)
- 11. Department of Finance
- 12. Canadian International Trade Tribunal
- 13. Municipal Development and Loan Board
- 14. Office of the Superintendent of Financial Institutions
- 15. Department of Fisheries and Oceans
(For purposes of Article Kbis-16, the national security considerations applicable to the Department of National Defence are equally applicable to the Canadian Coast Guard other than the functions of the Canadian Coast Guard retained by the Department of Transport pursuant to Order under the Public Service Rearrangement and Transfer of Duties Act published in the Canada Gazette, Part II, as SI/95-46, namely the Harbours and Ports Directorate, the regional Harbours and Ports Branches, the Marine Regulatory Directorate, the Ship Inspection Directorate and the regional Ship Inspection Branches of the Canadian Coast Guard.) - 16. Department of Health
- 17. Medical Research Council
- 18. Department of Human Resources Development
- 19. Canada Employment Insurance Commission
- 20. Canada Labour Relations Board
- 21. Department of Indian Affairs and Northern Development
- 22. Department of Industry
- 23. National Research Council of Canada
- 24. Natural Sciences and Engineering Research Council of Canada
- 25. Social Sciences and Humanities Research Council
- 26. Department of Justice
- 27. Canadian Human Rights Commission
- 28. Statute Revision Commission
- 29. Supreme Court of Canada
- 30. Canada Customs and Revenue Agency
- 31. Department of Natural Resources
- 32. Canadian Nuclear Safety Commission
- 33. National Energy Board (on its own account)
- 34. Department of Public Works and Government Services (on its own account)
- 35. Public Service Commission
- 36. Department of the Solicitor General
- 37. Correctional Service of Canada
- 38. National Parole Board
- 39. Department of Transport
(For purposes of Article Kbis-16, the national security considerations applicable to the Department of National Defence are equally applicable to the functions of the Canadian Coast Guard retained by the Department of Transport pursuant to Order under the Public Service Rearrangement and Transfer of Duties Act published in the Canada Gazette, Part II, as SI/95-46, namely the Harbours and Ports Directorate, the regional Harbours and Ports Branches, the Marine Regulatory Directorate, the Ship Inspection Directorate and the regional Ship Inspection Branches of the Canadian Coast Guard.) - 40. Treasury Board Secretariat
- 41. Department of Veterans Affairs
- 42. Department of Western Economic Diversification (on its own account)
- 43. Atlantic Canada Opportunities Agency (on its own account)
- 44. Office of the Auditor General
- 45. Canada Economic Development for the Regions of Quebec
- 46. Canadian Centre for Management Development
- 47. Canadian Radio-television and Telecommunications Commission (on its own account)
- 48. Civil Aviation Tribunal
- 49. Commissioner for Federal Judicial Affairs
- 50. Registry of the Competition Tribunal
- 51. Copyright Board
- 52. Registry of the Federal Court of Canada
- 53. Office of the Grain Transportation Agency Administrator (on its own account)
- 54. Hazardous Materials Information Review Commission
- 55. Offices of the Information and Privacy Commissioners of Canada
- 56. The National Archives of Canada
- 57. National Farm Products Council
- 58. The National Library
- 59. Canada Transportation Agency (on its own account)
- 60. Northern Pipeline Agency (on its own account)
- 61. Patented Medicine Prices Review Board
- 62. Petroleum Monitoring Agency
- 63. Privy Council Office
- 64. Canadian Intergovernmental Conference Secretariat
- 65. Office of the Commissioner of Official Languages
- 66. Public Service Staff Relations Board
- 67. Office of the Governor General’s Secretary
- 68. Office of the Chief Electoral Officer
- 69. Federal-Provincial Relations Office
- 70. Statistics Canada
- 71. Registry of the Tax Court of Canada
- 72. Canadian Centre for Occupational Health and Safety
- 73. Canadian Transportation Accident Investigation and Safety Board
- 74. Director of Soldier Settlement
- 75. Director, The Veterans’ Land Act
- 76. Fisheries Prices Support Board
- 77. National Battlefields Commission
- 78. Royal Canadian Mounted Police
- 79. Royal Canadian Mounted Police External Review Committee
- 80. Royal Canadian Mounted Police Public Complaints Commission
- 81. Department of National Defence
Note to Annex Kbis-01.1-1
The General Notes apply to this Annex.
Schedule of Chile:
Thresholds:
CLP 33,599,963 - Goods covered in Annex Kbis-01.1-3
CLP 33,599,963 - Services covered in Annex Kbis-01.1-4
CLP 4,373,536,606 - Construction Services covered in Annex Kbis-01.1-5
- 1. Presidencia de la República
- 2. Ministerio de Interior
- 3. Ministerio de Relaciones Exteriores
- 4. Ministerio de Defensa Nacional
- 5. Ministerio de Hacienda
- 6. Ministerio Secretaría General de la Presidencia
- 7. Ministerio Secretaría General de Gobierno
- 8. Ministerio de Economía, Fomento, Reconstrucción y Energía
- 9. Ministerio de Minería
- 10. Ministerio de Planificación y Cooperación
- 11. Ministerio de Educación
- 12. Ministerio de Justicia
- 13. Ministerio de Trabajo y Previsión Social
- 14. Ministerio de Obras Públicas
- 15. Ministerio de Transporte y Telecomunicaciones
- 16. Ministerio de Salud
- 17. Ministerio de Vivienda y Urbanismo
- 18. Ministerio de Bienes Nacionales
- 19. Ministerio de Agricultura
- 20. Ministerio Servicio Nacional de la Mujer
Gobiernos Regionales
Intendencia I Región
Gobernación de Arica
Gobernación de Parinacota
Gobernación de Iquique
Intendencia II Región
Gobernación de Antofagasta
Gobernación de El Loa
Gobernación de Tocopilla
Intendencia III Región
Gobernación de Chañaral
Gobernación de Copiapó
Intendencia IV Región
Gobernación de Huasco
Gobernación de El Elqui
Gobernación de Limarí
Gobernación de Choapa
Intendencia V Región
Gobernación de Petorca
Gobernación de Valparaíso
Gobernación de San Felipe de Aconcagua
Gobernación de Los Andes
Gobernación de Quillota
Gobernación de San Antonio
Gobernación de Isla de Pascua
Intendencia VI Región
Gobernación de Cachapoal
Gobernación de Colchagua
Gobernación de Cardenal Caro
Intendencia VII Región
Gobernación de Curicó
Gobernación de Talca
Gobernación de Linares
Gobernación de Cauquenes
Intendencia VIII Región
Gobernación de Ñuble
Gobernación de Bío-Bío
Gobernación de Concepción
Gobernación de Arauco
Intendencia IX Región
Gobernación de Malleco
Gobernación de Cautín
Intendencia X Región
Gobernación de Valdivia
Gobernación de Osorno
Gobernación de Llanquihue
Gobernación de Chiloé
Gobernación de Palena
Intendencia XI Región
Gobernación de Coyhaique
Gobernación de Aysén
Gobernación de General Carrera
Intendencia XII Región
Gobernación de Capitán Prat
Gobernación de Última Esperanza
Gobernación de Magallanes
Gobernación de Tierra del Fuego
Gobernación de Antártica Chilena
Intendencia Región Metropolitana
Gobernación de Chacabuco
Gobernación de Cordillera
Gobernación de Maipo
Gobernación de Talagante
Gobernación de Melipilla
Gobernación de Santiago
Annex K bis-01.1-2
Other Covered Entities
Schedule of Canada:
Thresholds:
Cdn $ 420,000 - Goods covered in Annex Kbis-01.1-3
Cdn $ 420,000 - Services covered in Annex Kbis-01.1-4
Cdn $ 13,400,000 - Construction Services covered in Annex Kbis-01.1-5
- 1. Canada Post Corporation
- 2. National Capital Commission
- 3. Royal Canadian Mint
- 4. Via Rail Canada Inc.
- 5. Canadian Museum of Civilization
- 6. Canadian Museum of Nature
- 7. National Gallery of Canada
- 8. National Museum of Science and Technology
- 9. Defence Construction (1951) Ltd.
- 10. Canadian Tourism Commission
Notes to Annex Kbis-01.1-2
- 1. The General Notes apply to this Annex.
- 2. For greater certainty, Article Kbis-15(1) applies to procurements by Via Rail Canada Inc. and the Royal Canadian Mint, respecting the protection of the commercial confidentiality of information provided.
- 3. This Chapter does not apply to procurement by or on behalf of the Royal Canadian Mint of direct inputs for use in minting anything other than Canadian legal tender.
Schedule of Chile:
Thresholds:
CLP 167,999,297 - Goods covered in Annex Kbis-01.1-3
CLP 167,999,297 - Services covered in Annex Kbis-01.1-4
CLP 5,980,244,385 - Construction Services covered in Annex Kbis-01.1-5
- 1. Empresa Portuaria Arica
- 2. Empresa Portuaria Iquique
- 3. Empresa Portuaria Antofagasta
- 4. Empresa Portuaria Coquimbo
- 5. Empresa Portuaria Valparaíso
- 6. Empresa Portuaria San Antonio
- 7. Empresa Portuaria San Vicente-Talcahuano
- 8. Empresa Portuaria Puerto Montt
- 9. Empresa Portuaria Chacabuco
- 10. Empresa Portuaria Austral
- 11. Aeropuertos de propiedad del Estado, dependientes de la Dirección de Aeronáutica Civil
Annex K bis-01.1-3
Goods
Schedule of Canada:
Section A - General Provisions
- 1. All goods are covered subject to paragraph 2.
- 2. With respect to Canada, for procurement by the Department of National Defence, the Royal Canadian Mounted Police and the Canadian Coast Guard, only the goods listed in Section B are included in the coverage of this Chapter, subject to the application of Article Kbis-16(1).
Section B - List of Certain Goods
(Numbers refer to the Federal Supply Classification
- 22. Railway equipment
- 23. Motor vehicles, trailers and cycles (except buses in 2310; and, except military trucks and trailers in 2320 and 2330 and tracked combat, assault and tactical vehicles in 2350)
- 24. Tractors
- 25. Vehicular equipment components
- 26. Tires and tubes
- 29. Engine accessories
- 30. Mechanical power transmission equipment
- 32. Woodworking machinery and equipment
- 34. Metal working machinery
- 35. Service and trade equipment
- 36. Special industry machinery
- 37. Agricultural machinery and equipment
- 38. Construction, mining, excavating and highway maintenance equipment
- 39. Materials handling equipment
- 40. Rope, cable, chain and fittings
- 41. Refrigeration and air conditioning equipment
- 42. Fire fighting, rescue and safety equipment (except 4220: Marine lifesaving and diving equipment; and 4230: Decontaminating and impregnating equipment)
- 43. Pumps and compressors
- 44. Furnace, steam plant, drying equipment and nuclear reactors
- 45. Plumbing, heating and sanitation equipment
- 46. Water purification and sewage treatment equipment
- 47. Pipe, tubing, hose and fittings
- 48. Valves
- 49. Maintenance and repair shop equipment
- 52. Measuring tools
- 53. Hardware and abrasives
- 54. Prefabricated structures and scaffolding
- 55. Lumber, millwork, plywood and veneer
- 56. Construction and building materials
- 61. Electric wire and power and distribution equipment
- 62. Lighting fixtures and lamps
- 63. Alarm and signal systems
- 65. Medical, dental and veterinary equipment and supplies
- 66. Instruments and laboratory equipment (except 6615: Automatic pilot mechanisms and airborne Gyro components; and 6665: Hazard detecting instruments and apparatus)
- 67. Photographic equipment
- 68. Chemicals and chemical products
- 69. Training aids and devices
- 70. General purpose automatic data processing equipment, software, supplies and support equipment (except 7010: Automatic Data Processing Equipment (ADPE) configurations)
- 71. Furniture
- 72. Household and commercial furnishings and appliances
- 73. Food preparation and serving equipment
- 74. Office machines, text processing system and visible record equipment
- 75. Office supplies and devices
- 76. Books, maps and other publications (except 7650: drawings and specifications)
- 77. Musical instruments, phonographs and hometype radios
- 78. Recreational and athletic equipment
- 79. Cleaning equipment and supplies
- 80. Brushes, paints, sealers and adhesives
- 81. Containers, packaging and packing supplies
- 85. Toiletries
- 87. Agricultural supplies
- 88. Live animals
- 91. Fuels, lubricants, oils and waxes
- 93. Nonmetallic fabricated materials
- 94. Nonmetallic crude materials
- 96. Ores, minerals and their primary products
- 99. Miscellaneous
Note to Annex Kbis-01.1-3
The General Notes apply to this Annex.
Schedule of Chile:
This Chapter applies to all goods procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2.
Annex K bis-01.1-4
Services
Schedule of Canada:
Section A - General Provisions
- 1. Coverage includes all services that are procured by the entities in Annex Kbis-01.1-1 and Annex Kbis-01.1-2, subject to paragraph 3 and Section B.
- 2. Services are identified in accordance with the The Common Classification System
- 3. Annex Kbis-01.1-5 applies to contracts for construction services.
Section B - Excluded Coverage
Services Exclusions by Major Service Category
Part 1 - Annex Kbis-01.1-1 and Annex Kbis-01.1-2
The following services are excluded for entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2:
A. Research and Development
All classes
B. Special Studies and Analysis - not R&D
B002 Animal and Fisheries Studies
B003 Grazing and Range Studies
B400 Aeronautic/Space Studies
B503 Medical and Health Studies
B507 Legal Studies (Except Advisory Services on Foreign Law)
C. Architecture and Engineering Services
C112 Airfield, Communication and Missile Facilities
C216 Marine Architect and Engineering Services
D. Information Processing and Related Telecommunications Services
D304 ADP Telecommunications and Transmission Services, except those classified as “enhanced or value-added services.” Enhanced or value added services means those telecommunications services employing computer processing applications that:
- a. act on the format, content, code, protocol or similar aspects of a customer’s transmitted information;
- b. provide a customer with additional, different or restructured information, or
- c. involve customer interaction with stored information.
For purposes of this provision, the procurement of “ADP Telecommunications and Transmission services” does not include the ownership or furnishing of facilities for the transmission of voice or data services. This provision only extends to providers of enhanced or value-added services whose underlying telecommunications transmission facilities are leased from providers of public telecommunications transport networks.
D305 ADP Teleprocessing and Timesharing Services
F. Natural Resources and Conservation Services
F004 Land Treatment Practices Services (plowing/clearing, etc)
F005 Range Seeding Services (ground equipment)
F006 Crop Services inc. Seed Collection/Production Services
F011 Pesticides/Insecticides Support Services (except forestry and logging)
F021 Veterinary/Animal Care Services (inc. livestock services)
F029 Other Animal Care /Control Services
F030 Fisheries Resources Management Services
F031 Fish Hatchery Services
F050 Recreation Site Maintenance Services (non-construction)
F059 Other Natural Resource and Conservation Services
G. Health and Social Services
All classes
H. Quality Control, Testing and Inspection and Technical Representative Services
Services for the departments and functions listed in Annex Kbis-01.1-6 – General Notes, Note 1 (e) to this schedule respecting FSC 36 – (Special Industry Machinery), FSC 70 – (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 - (Office machines, text processing systems and visible record equipment)
FSC 58 (Communications, Detection, and Coherent Radiation Equipment)
Services with reference to transportation equipment
J. Maintenance, Repair, Modification, Rebuilding and Installation of Equipment
Services for the departments and functions listed in Annex Kbis-01.1-6 – General Notes, Note 1 (e) to this schedule respecting FSC 36 – (Special Industry Machinery), FSC 70 – (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 - (Office machines, text processing systems and visible record equipment)
FSC 58(Communications, Detection, and Coherent Radiation Equipment)
Services with reference to transportation equipment
J019 Maintenance, Repair, Modification, Rebuilding and Installation of Equipment related to Ships
J998 Non-nuclear Ship Repair
K. Custodial Operations and Related Services
K0 Personal Care Services
K105 Guard Services
K109 Surveillance Services
K115 Preparation and Disposal of Excess and Surplus Property
L. Financial and Related Services
All classes
M. Operation of Government Owned Facilities
All facilities operated by:
The Department of National Defence
The Department of Transport
The Department of Natural Resources
and for all Departments: M180 and M140
R. Professional, Administrative and Management Support Services
R003 Legal Services (Except Advisory Services on Foreign Law)
R004 Certifications and accreditations for products and institutions other than Educational Institutions
R007 Systems Engineering ServicesFootnote 1
R012 Patent and Trade Mark Services
R101 Expert Witness
R102 Weather Reporting/Observation Services
R104 Transcription Services
R106 Post Office Services
R109 Translation and Interpreting Services (inc. sign language)
R114 Logistics Support ServicesFootnote 2
R116 Court Reporting Services
R117 Paper Shredding Services
R201 Civilian Personnel Recruitment (inc. Services of Employment Agencies)
S. Utilities
All classes
T. Communications, Photographic, Mapping, Printing and Publications Services
All classes
U. Education and Training Services
U010 Certifications and accreditations for Educational Institutions
V. Transportation, Travel and Relocation Services
All classes (except V502 Hotel and similar accommodation services only and V503 Travel Agent Services (not including Tour Guides))
W. Lease or Rental of Equipment
Services for the departments and functions listed in Annex Kbis-01.1-6 – General Notes, Note 1 (e) to this schedule respecting FSC 36 – (Special Industry Machinery), FSC 70 – (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 - (Office machines, text processing systems and visible record equipment)
FSC 58 (Communications, Detection, and Coherent Radiation Equipment)
Services with reference to transportation equipment
Part 2 - Annex Kbis-01.1-2
The following services are excluded for entities listed in Annex Kbis-01.1-2 only:
D. Information Processing and Related Telecommunications Services
D309 Information and Data Broadcasting or Data Distribution Services
D316 Telecommunications Network Management Services
D317 Automated News Service, Data Services, or Other Information Services. Buying data, the electronic equivalent of books, periodicals, newspapers, etc.
D399 Other ADP and Telecommunications Services
F. Natural Resources and Conservation Services
F007 Seedling Production/Transplanting Services
F010 Other Range/Forest Improvements Services
R. Professional, Administrative and Management Support Services
R113 Data Collection Services
V. Transportation, Travel and Relocation Services
V502 Hotel and similar accommodation services only
Notes to Annex K bis-01.1-4
1. All services, with reference to those goods purchased by the Department of National Defence, the Royal Canadian Mounted Police and the Canadian Coast Guard which are not identified as subject to coverage by this Chapter (Annex Kbis-01.1-3), will be exempt from the disciplines of the Chapter.
2. All services purchased in support of military forces located overseas will be exempt from coverage by this Chapter.
3. The General Notes apply to this Annex.
Schedule of Chile
This Chapter applies to all services procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2, except the following:
Financial Services
All classes
Annex K bis-01.1-5
Construction Services
Schedule of Canada:
Section A - General Provisions
1. Coverage includes all construction services set out in the Common Classification System, except those listed in Section B, that are procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2.
2. The Common Classification System
Section B - Excluded Coverage
Services Exclusions by Major Service Category
The following services contracts are excluded:
- 1. Dredging
- 2. Construction contracts tendered by or on behalf of the Department of Transport
- 3. For CPC 5115 mining of oil and gas which is classified under CCS F042
Note to Annex Kbis-01.1-5
The General Notes apply to this Annex.
Schedule of Chile:
This Chapter applies to all construction services procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2.
Annex K bis-01.1-6
General Notes
Schedule of Canada:
1.This Chapter does not apply to procurements in respect of:
- a. shipbuilding and repair;
- b. urban rail and urban transportation equipment, systems, components and materials incorporated therein as well as all project related materials of iron or steel;
- c. contracts respecting FSC 58 (communications, detection and coherent radiation equipment);
- d. set-asides for small and minority businesses;
- e.
- i. the Department of Transport;
- ii. the Department of Fisheries and Oceans;
- iii. the Canadian Food Inspection Agency in respect of the administration and enforcement of the Fish Inspection Act;
- iv. the Department of Canadian Heritage in respect of those functions that were formerly the responsibility of the Department of Communications;
- v. the Department of Industry in respect of telecommunications, except in relation to (a) the planning and coordination of telecommunication services for departments, boards and agencies of the Government of Canada, and (b) broadcasting, other than in relation to spectrum management and the technical aspects of broadcasting; and
- vi. the Department of Public Works and Government Services in respect of the Government Telecommunications Agency;
- f. and agricultural products made in furtherance of agricultural support programs or human feeding programs.
2. This Chapter does not apply to the procurement of transportation services that form a part of, or are incidental to, a procurement contract.
3. Pursuant to Article Kbis-16, national security exceptions include oil purchases related to any strategic reserve requirements.
4. National security exceptions include procurements made in support of safeguarding nuclear materials or technology.
5. The procurement process is the process that begins after an entity has decided on its requirement and continues through to and including contract award.
Schedule of Chile:
This Chapter does not apply to procurements in respect of financial services.
Annex K bis-01.1-7
Threshold Adjustment Formulas
1. The thresholds referred to in Annexes Kbis-01.1-1, Kbis-01.1-2 and Kbis-01.1-8, except the threshold for construction services in Annex Kbis-01.1-1, shall be adjusted in accordance with Annex 1001.1c of the North American Free Trade Agreement.
2. The threshold for construction services in Annex Kbis-01.1-1 shall be adjusted;
- a. for Canada, in accordance with the formula in the World Trade Organization Agreement on Government Procurement, GPA/1, Annex 3; and
- b. for Chile, in accordance with the formula in Chapter 9, Section G, paragraph 3 of the U.S.-Chile Free Trade Agreement.
3. The Parties agree that the thresholds shall be fixed for two calendar years and the first threshold adjustment will take place effective 1 January, 2008.
4. Where a major change in a national currency of either Party during a year were to create a significant problem with regard to the application of the Chapter, the Parties shall consult as to whether an interim adjustment is appropriate.
5. In the event that:
- a. Canada withdraws from the North American Free Trade Agreement pursuant to Article 2205 of that Agreement, or the World Trade Organization Agreement on Government Procurement pursuant to Article XXIV of that Agreement; or
- b. Chile withdraws from the U.S.-Chile Free Trade Agreement pursuant to Article 24.4 of that Agreement; or
- c. the North American Free Trade Agreement, or the World Trade Organization Agreement on Government Procurement, or the U.S.-Chile Free Trade Agreement are terminated; or
- d. a threshold adjustment formula referenced in paragraphs 1 or 2 is altered; the Committee on Procurement shall agree on a suitable alternate threshold adjustment formula.
6. The Committee shall recommend to the Commission any modification of, or addition to Annex Kbis-01.1-7.
Annex K bis-01.1-8
Extended Transparency Commitments
The provisions of Article Kbis-03; Article Kbis-04; the first sentence of Article Kbis-05(1); Article Kbis-06(1) and (3); Article Kbis-08(1), (2)(b), and (5); Article Kbis-10(1) and (2); Article Kbis-15 and Article Kbis-16 apply where:
- 1. the entity uses an open tendering process; and
- 2. the procurement is for goods, services and construction services in excess of CDN $124,000 for Canada and CLP 54,902,025 for Chile, for entities listed in Annex Kbis-01.1-1 and is otherwise excluded by Annexes Kbis-01.1-3 (Goods), Kbis-01.1-4 (Services), and Kbis-01.1-5 (Construction Services).
- Date modified: