Canada-Chile Free Trade Agreement

Notes

Chapter B

1. A good of a Party may include materials of other countries.

Chapter C

1. "Goods of the Party" includes goods produced in a province of that Party.

2. For the purpose of Article C-02, a good may refer to an originating good or a good which benefits from tariff elimination under a TPL.

3. This paragraph is not intended to prevent either Party from modifying its tariffs outside this Agreement on goods for which no tariff preference is claimed under this Agreement. This paragraph does not prevent either Party from raising a tariff back to an agreed level in accordance with the phase-out schedule in this Agreement following a unilateral reduction.

4. Paragraphs 1 and 2 of this Article are not intended to prevent either Party from maintaining or increasing a customs duty as may be authorized by any dispute settlement provision of the WTO Agreement or any agreement under the WTO Agreement.

5. Where another form of monetary security is used, it shall not be more burdensome than the bonding requirement referred to in this subparagraph. Where a Party uses a non-monetary form of security, it shall not be more burdensome than existing forms of security used by that Party.

6. This paragraph does not cover goods imported in bond, into foreign-trade zones, or in similar status, that are exported for repair and are not re-imported in bond, into foreign trade zones, or in similar status.

7. For purposes of reference only, descriptions are provided next to the corresponding tariff provision.

8. An operation or process that is part of the production or assembly of an unfinished good into a finished good is not a repair or alteration of the unfinished good; a component of a good is a good that may be subject to repair or alteration.

9. The elimination of the MFN tariff is as follows:

"a"

denotes elimination by November 18, 1996;

"b"

denotes elimination on the date of entry into force of this Agreement;

"c"

denotes elimination not later than January 1, 1999;

"n.a."

denotes that the Item does not exist in the Party's tariff schedule.

Oil Seed Seeds

10. The following products are mentioned in this Law, but the Price Band System is not applied to them nor have they been subject to this System: 1201.0000; 1202.1000; 1202.2000; 1203.0000; 1204.0000; 1205.0000; 1206.0000; 1207.1000; 1207.2000; 1207.3000; 1207.4000; 1207.5000; 1207.6000; 1207.9100; 1207.9200; 1207.9900.

11. Paragraphs 1 and 2 shall not be construed to modify the rights and obligations set out in Chapter Ten of the Canada-United States Free Trade Agreement.

Annex C-00-B

1. The general provisions of Chapter B (Definitions), Chapter C (Market Access), Chapter D (Rules of Origin) and Chapter F (Emergency Action) are subject to the specific rules for textiles and apparel goods set out in this Annex.

2. For purposes of Sections 3 and 4:

• a. "increased quantities" is intended to be interpreted more broadly than the standard provided in Article F-01.1, which considers imports "in absolute terms" only. For purposes of these Sections, "increased quantities" is intended to be interpreted in the same manner as this standard is interpreted in the WTO "Agreement on Textiles and Clothing"; and
• b. "serious damage" is intended as a less stringent standard than "serious injury" under Article F-01.1. The "serious damage" standard is drawn from the WTO "Agreement on Textiles and Clothing". The factors to be considered in determining whether the standard has been met are set out in Section 3.2 and are also drawn from that Agreement. "Serious damage" is to be interpreted in the light of its meaning in that Agreement.

3. In paragraph 5(c), the term "equitable treatment" is intended to have the same meaning as it has in customary practice under the WTO "Agreement on Textiles and Clothing".

4. For purposes of this Appendix only, references to U.S. Harmonized System Statistical Provisions are based on the 1992 Harmonized System.

Chapter D

1. The phrase "specifically describes" is intended solely to prevent Article D-01(d) from being used to qualify a part of another part, where the heading or subheading covers the final good, the part made from the other part and the other part.

2. Article D-02(4) applies to intermediate materials, and VNM in paragraphs 2 and 3 does not include:

• i. the value of any non-originating materials used by another producer to produce an originating material that is subsequently acquired and used in the production of the good by the producer of the good, and
• ii. the value of non-originating materials used by the producer to produce an originating self-produced material that is designated by the producer as an intermediate material pursuant to Article D-02(10).

With respect to paragraph 4, where an originating intermediate material is subsequently used by the producer with non-originating materials (whether or not produced by the producer) to produce the good, the value of such non-originating materials shall be included in the VNM of the good.

Under paragraph 4, with respect to any self-produced material that is not designated as an intermediate material, only the value of non-originating materials used to produce the self-produced material shall be included in the VNM of the good.

3. With respect to paragraph 8, sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs included in the value of materials used in the production of the good are not subtracted out of the net cost in the calculation under Article D-02(3).

4. With respect to paragraph 10, an intermediate material used by another producer in the production of a material that is subsequently acquired and used by the producer of the good shall not be taken into account in applying the proviso set out in that paragraph, exceptwhere two or more producers accumulate their production under Article D-04.

With respect to paragraph 10, if a producer designates a self-produced material as an originating intermediate material and the Customs Administration of the importing Party subsequently determines that the intermediate material is not originating, the producer may rescind the designation and recalculate the value content of the good accordingly. In such a case, the producer shall retain its rights of appeal or review with regard to the determination of the origin of the intermediate material.

5. For purposes of applying paragraph 6, the determination of the component that determines the tariff classification of the good shall be based on General Rules for the Interpretation of the Harmonized System. When the component that determines the tariff classification is a blend of two or more yarns or fibres, all yarns and, where applicable, fibres, in that component are to be taken into account.

6. The rules of origin under Chapter D are based on the 1996 Harmonized System, with each Party's tariff schedule amended to incorporat the new tariff items created for rules of origin purposes.

Annex D-01

1. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

2. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

3. For definition of "average yarn number" see Annex C-00-B, Section 6.

4. If a good provided for in subheading 8301.20 is for use in a motor vehicle, the provisions of Article D-03 may apply.

5. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

6. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

7. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

8. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

9. If the good provided for in subheading 8413.30 or 8413.60 is for use in a motor vehicle, the provisions of Article D-03 may apply.

10. If the good provided for in subheading 8414.59 or 8414.80 is for use in a motor vehicle, the provisions of Article D-03 may apply.

11. If the good provided for in subheading 8415.20 is for use in a motor vehicle, the provisions of Article D-03 may apply.

12. If the good provided for in subheading 8421.23, 8421.31 or 8421.39 is for use in a motor vehicle, the provisions of Article D-03 may apply.

13. If the good provided for in subheading 8425.39, 8425.42 or 8425.49 in a motor vehicle, the provisions of Article D-03 may apply.

14. If the good provided for in subheading 8431.10 is for use in a motor vehicle, the provisions of Article D-03 may apply.

15. If the good provided for in subheading 8481.20, 8481.30 or 8481.80 is for use in a motor vehicle, the provisions of Article D-03 may apply.

16. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

17. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

18. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

19. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

20. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

21. If the good provided for in subheading 8501.10, 8501.20, 8501.31 or 8501.32 is for use in a motor vehicle, the provisions of Article D-03 may apply.

22. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

23. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

24. If the good provided for in subheading 8512.20, 8512.30 or 8512.40 is for use in a motor vehicle, the provisions of Article D-03 may apply.

25. If the good provided for in subheading 8516.10 is for use in a motor vehicle, the provisions of Article D-03 may apply.

26. If the good provided for in subheading 8536.41, 8536.50 or 8536.90 is for use in a motor vehicle, the provisions of Article D-03 may apply.

27. If the good provided for in subheading 8537.10 is for use in a motor vehicle, the provisions of Article D-03 may apply.

28. If the good provided for in subheading 8539.10, 8539.21 or 8539.29 is for use in a motor vehicle, the provisions of Article D-03 may apply.

29. If the good provided for in subheading 8544.30 or 8544.41 is for use in a motor vehicle, the provisions of Article D-03 may apply.

30. If the good provided for in subheading 9017.80 is for use in a motor vehicle, the provisions of Article D-03 may apply.

31. If the good provided for in subheading 9026.10 is for use in a motor vehicle, the provisions of Article D-03 may apply.

32. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.

33. If the good provided for in subheading 9032.10, 9032.20 or 9032.89 is for use in a motor vehicle, the provisions of Article D-03 may apply.

34.If the good provided for in heading 91.04 is for use in a motor vehicle, the provisions of Article D-03 may apply.

35. If the good provided for in subheading 9401.20 is for use in a motor vehicle, the provisions of Article D-03 may apply.

36. This table identifies the new eight-digit tariff classification provisions that have been created solely for purposes of application of the rules of origin under Chapter D. In the case of Chile in particular, these new tariff provisions do not apply to the benefits provided under Law 18.480 and therefore do not grant any new or additional rights under Law 18.480.

Chapter E

1. The Uniform Regulations will clarify that "determination of origin" includes a denial of preferential tariff treatment under Article E-06(4), and that such denial is subject to review and appeal.

Chapter G

1. This Chapter covers investments existing on the date of entry into force of this Agreement as well as investments made or acquired thereafter.

2. Article G-06 does not preclude enforcement of any commitment, undertaking or requirement between private parties.

Chapter I

1. For purposes of this Article, "monopoly" means an entity, including a consortium or government agency, that in any relevant market in the territory of a Party is maintained or designated as the sole provider of public telecommunications transport networks or services.

Chapter J

1. No investor may have recourse to investor-state arbitration under the Investment Chapter for any matter arising under this Article.

2. Nothing in this Article shall be construed to prevent a monopoly from charging different prices in different geographic markets, where such differences are based on normal commercial considerations, such as taking account of supply and demand conditions in those markets.

3. A "delegation" includes a legislative grant, and a government order, directive or other act transferring to the monopoly, or authorizing the exercise by the monopoly of, governmental authority.

4. Differences in pricing between classes of customers, between affiliated and non-affiliated firms, and cross-subsidization are not in themselves inconsistent with the provision; rather, they are subject to this subparagraph when they are used as instruments of anticompetitive behaviour by the monopoly firm.

Chapter K

1. A business person seeking temporary entry under this Appendix may also perform training functions relating to the profession, including conducting seminars.

2. Accountant

• C.P.A.: Certified Public Accountant; C.A.:Chartered Accountant; C.G.A.: Certified General Accountant; C.M.A.: Certified Management Accountant

Dentist

• D.D.S.: Doctor of Dental Surgery; D.M.D.: Doctor of Dental Medicine

Lawyer

• LL.B.: Bachelor of Laws; J.D.: Doctor of Jurisprudence (not a doctorate); LL.L: Licence en Droit (Québec universities and University of Ottawa); B.C.L.: Bachelor of Civil Law

Librarian

• M.L.S.: Master of Library Science; B.L.S.: Bachelor of Library Science

Physician

• M.D.: Medical Doctor

Veterinarian

D.V.M.: Doctor of Veterinary Medicine; D.M.V.: Docteur en Médicine Vétérinaire

3. "University Title" means any document conferred by universities recognized by the Government of Chile and shall be deemed to be equivalent to the Minimum Education Requirements and Alternative Credentials for that profession. In the case of the profession of Lawyer (Abogado), the title is conferred by the Supreme Court of Chile.

4. "State/provincial licence" and "state/provincial/national licence" mean any document issued by a provincial or national government, as the case may be, or under its authority, but not by a local government, that permits a person to engage in a regulated activity or profession.

5. "Post-Secondary Diploma" means a credential issued, on completion of two or more years of post-secondary education, by an accredited academic institution in Canada or the United States of America.

6. "Post-Secondary Certificate" means a certificate issued, on completion of two or more years of post-secondary education at an academic institution:

• in the case of Mexico, by the federal government or a state government, an academic institution recognized by the federal government or a state government, or an academic institution created by federal or state law; and
• in the case of Chile, by an academic institution recognized by the Government of Chile.

7. A business person in this category must be seeking temporary entry to work in direct support of professionals in agricultural sciences, astronomy, biology, chemistry, engineering, forestry, geology, geophysics, meteorology or physics.

8. A business person in this category must be seeking temporary entry to perform in a laboratory chemical, biological, hematological, immunologic, microscopic or bacteriological tests and analyses for diagnosis, treatment or prevention of disease.