Treaty on Free Trade Between the Republic of Colombia, the Republic
of Venezuela and the United Mexican States
CHAPTER III: National Treatment and Market Access for Goods
Section A - Definitions
Article 3-01: Definitions
For the purposes of this chapter, the following definitions shall
apply:
F.O.B.: Free on board (L.A.8.)
Tariff item: Tariff classification code under the Harmonized System,
carried to the level of eight or ten digits.
Sample of no commercial value: Goods representative of a class
of goods already produced, or a model of goods whose production
is planned. This term does not include identical goods imported
by a single person or sent to a single consignee in such quantity
as, if taken together, would constitute an ordinary importation
that would be subject to payment of import duties.
Used: Those goods, which at the time of importation, exhibit signs
of wear or diminished attractiveness because of use; those which,
although not having been used, were manufactured a considerable
length of time ago; leftovers, irregulars, seconds, and waste.
Section B - Scope of Application and National
Treatment
Article 3-02: Scope of Application
Except as otherwise provided herein, this chapter shall apply
to the trade in goods of the Parties.
Article 3-03: National Treatment
1. Each Party shall grant national treatment to the goods of another
Party, pursuant to Article III of the GATT, including its interpretative
notes. To that end, Article III of the GATT and its interpretative
notes are incorporated into this Treaty and are an integral part
hereof.
2. The provisions of Paragraph 1 shall mean, with respect to a
state or department, or to a municipality, treatment no less favorable
than the most favorable treatment accorded by such state or department,
or municipality, to any similar, directly competitive, or ubstitute
goods, as applicable, of the Party of which it is a component.
3. Paragraphs 1 and 2 shall not apply to the measures listed in
the annex to this article.
Section C - Import Duties
Article 3-04: Tariff Elimination
1. Except as otherwise provided in this Treaty, none of the Parties
may increase any existing import duty, or adopt any new import
duty, on originating goods.
2. Except as otherwise provided in this Treaty, each of the Parties
shall gradually abolish its import duties on originating goods,
pursuant to the provisions of Annex 1 to this article.
3. It is not the intent of Paragraphs 1 and 2 of this article
to:
(a) Prohibit a Party from increasing an import duty on originating
goods to a level not higher than the one established in the Tariff
Elimination Program, when said import duty had previously been
reduced by that Party unilaterally to a level lower than the level
established in that program.
(b) Prevent a Party from increasing an import duty on originating
goods when that increase has been authorized as a result of a
GATT procedure to resolve disputes between those Parties.
(c) Prevent a Party from creating a new tariff sub-item or
sub-section, provided the import duty applicable to the corresponding
originating goods is not higher than the one applicable to the
subdivided tariff item.
4. Except as otherwise provided, this Treaty incorporates the
tariff preferences previously negotiated among the Parties, the
regional tariff preference (PAR) for the tariff universe, and
the extension of the PAR between Mexico and Venezuela, as reflected
in Annex 1 to this article. Beginning with the entry into force
of this Treaty, the preferences previously negotiated or granted
among the Parties within the framework of ALADI are null and void.
5. For purposes of tariff elimination in accordance with this
article, the transition rates or tariffs shall be rounded downward
to at least the nearest tenth of a percentage or, if the tariff
rate is expressed in monetary units, to at least the nearest .001
of the Party's official monetary unit.
6. In addition to the provisions set forth in Annex 2 to this article, the Commission shall, at the request of any Party, hold consultations to examine the possibility of accelerating the elimination of import duties for one or more goods, or of including one or more goods in the Tariff Elimination Program, and shall make the pertinent recommendations to the Parties. After the applicable legal procedures have been completed, the accelerated elimination of the import duties on a good that is achieved for two or more Parties shall prevail over any import duty or period of tariff elimination for that good between those Parties.
An inclusion of goods in the Tariff Elimination Program that is
achieved between two or more Parties shall begin to govern for
those goods between those Parties as soon as the applicable legal
procedures have been completed.
Article 3-05: Value for Customs Purposes
1. Except as provided in the annex to this article, the value
for customs purposes of an imported good shall be determined in
accordance with the principles of the Customs Valuation Code.
2. The tax base on which the import duties shall be applied to
the goods imported from another Party shall not be the value of
a good produced in the territory of the importing Party, nor shall
it be an arbitrary or fictitious value.
3. According to Article 13 of the Customs Valuation Code, if in the course of determining the customs value of imported goods it becomes necessary to delay the final determination of such customs value, the importer may withdraw his goods
from customs if, where so required, he provides sufficient guarantee
in the form of a surety, or if he so chooses, some other form
of guarantee provided for in the legislation of the Party. The
guarantee shall cover the ultimate payment of customs duties to
which the goods may be liable.
4. Each Party shall determine what documentation shall be suitable
for demonstrating that the value for customs purposes is correct.
Such documentation shall not be greater than what could reasonably
be requested to satisfy the provision in Article VII of the GATT.
5. The guarantee furnished pursuant to Paragraph 3 shall be released
within not more than 20 working days counted from the date on
which the importer delivers the appropriate documentation to the
customs authority, unless the customs authority itself has initiated
the exercise of its powers of corroboration or verification.
6. Each Party may determine, pursuant to Paragraph 3, the imported
goods of the other Party that are to be subject to the aforementioned
guarantee when the value for customs purposes declared by the
importer is lower than the estimated price as determined by the
customs authority of the importing Party on the basis of transaction
values previously obtained and analyzed.
7. Before adopting the estimated price referred to in Paragraph
6, the Party shall notify the other Parties of the description
of the good, its tariff item number, the estimated price it is
suggested be established, and the reasons being used as grounds
for adopting the measure.
8. The Parties understand that the estimated price to which Paragraph
6 refers is not to be considered as the base vice for determining
the import duties.
Article 3-06: Temporary Importation of Goods
1. Each Party shall authorize the temporary importation, either
duty free or with suspension of payment of duty, of at least the
goods listed below that are imported from another Party regardless
of their origin and regardless of the availability, in the territory
of the importer Party, of similar, directly competitive, or substitute
goods:
(a) Professional equipment necessary for carrying out the
husiness activity, trade or profession of a business person;
(b) Equipment for the press or for sound or television broadcasting
and cinematographic equipment;
(c) Goods imported for sports purposes or intended for exhibition
or demonstration, including components, auxiliary apparatus, and
accessories; and
(d) Commercial samples and advertising films.
2. Except as otherwise provided in this Treaty, each Party may
subject the temporary importation, either duty free or with suspension
of payment of duty, of a good of the type indicated in Paragraph
1 (a), (b), or (c) to any of the following conditions, but shall
not be permitted to adopt additional conditions:
(a) The goods are to be introduced by natural or juristic
persons who are legally established in the Party, or by nationals
of another Party;
(b) The goods are to be used exclusively by the person who
is entering temporarily or under his personal supervision in the
performance of his activity, trade, or occupation;
(e) The goods are identifiable upon re-export;
(f) The goods are re-exported upon the departure of the person,
or within a time period reasonably corresponding to the purpose
of the temporary import, which may not in any case exceed six
months, extendable to nine months;
(g) The goods are imported in quantities not in excess of what
is reasonable, according to their intended use; and
(h) The goods are re-exported in the same form as they were
imported.
3. Except as otherwise provided in this Treaty, the Parties may
subject the temporary importation, either duty free or with suspension
of payment of duty, of a good of the type indicated in Paragraph
l(d) to the following conditions, but shall not be permitted to
adopt additional conditions:
(a) The goods are imported only for purposes of obtaining orders
for goods or services that are provided from the territory of
another Party or from another country that is not a Party;
(b) The goods are not sold or leased and are used only for demonstration
or exhibition while they remain in (the Party's) territory;
(c) The goods are identifiable upon re-export;
(d) The goods are re-exported within a time period reasonably
corresponding to the purpose of the temporary import, which may
not in any case exceed six months, extendable to nine months;
(e) The goods are imported in quantities not in excess of what
is reasonable, according to their intended use.
4. then an item that was temporarily imported free of import duty
pursuant to Paragraph 1 fails to observe one of the conditions
that a Party imposes under Paragraphs 2 and 3, that Party may
demand payment of the import duties and of any other charge that
would be incurred on permanent import of the item.
Article 3-07: Importation of Samples of No Commercial Value
Each Party shall authorize the duty-free importation of samples
of no commercial value originating in another Party.
Article 3-08: Levels of Temporary Flexibility for Certain Goods
Classified in Chapters 51 to 63 of the Harmonized System
Until December 21, 1999, the Parties indicated in the annex to
this article shall grant the goods classified in Chapters 51 to
63 of the Harmonized System that comply with the provisions of
Article 6-19 the preferential treatment that corresponds to originating
goods and is stipulated in the Tariff Elimination Program, pursuant
to the provisions of that annex.
Section D - Non-tariff Measures
Article 3-09: Restrictions on Importation and Exportation
1. Except as otherwise provided in this Treaty, no Party may adopt
or maintain any prohibition or restriction on the importation
of any good of another Party or on the exportation or sale for
export of any good destined for the territory of another Party,
except in accordance with Article XI of the GATT, including its
interpretative notes. To that end, Article XI of the GATT and
its interpretative notes are incorporated into and made a part
of this Treaty.
2. The Parties understand that the rights and obligations of the
GATT as incorporated in Paragraph 1 prohibit, in all circumstances
where there is any other type of restriction, the establishment
of minimum export and import prices, except as permitted for the
application of penalties and commitments in matters of anti-dumping
duties and quotas or countervailing duties.
3. In those cases when a Party adopts or maintains a prohibition
or restriction on the importation of goods shipped from a country
that is not a Party, or exportation of goods intended for a country
that is not a Party, no provision of this Treaty shall be interpreted
in the sense of preventing it from:
4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, upon request of any Party, shall consult with a view to avoiding undue interference with or distortion of pricing,
marketing and distribution arrangements in another Party.
5. Paragraphs 1 to 4 shall not apply to the measures set out in
the annex to this Article.
Article 3-10: Customs Charges
No Party shall increase or establish any customs duty for the
service rendered by customs on originating goods, and shall abolish
those charges on originating goods within five-and-a-half years
following the entry into force of this Treaty.
Article 3-11: Taxes on Exports
1. Except as provided in this Article, no Party shall adopt or
maintain any tax, duty, or charge on exports of a good to a territory
of another Party unless they are adopted or maintained on the
export of said good to the territories of all the other Parties,
and to said good when intended for internal consumption.
2. Each Party may maintain or adopt a tax, levy, or other charge
on the exports of the essential goods listed in Annex 1 to this
Article, on their ingredients, or on the goods from which said
food products are derived, if said tax, levy, or charge is adopted
or maintained for the export of those goods to the territories
of all the other Parties and is employed:
(a) So that the benefits of a domestic food aid program that includes
said foods are received only by consumers in the Party that applies
said program; or
(b) To ensure the availability of sufficient quantities of the
food item for internal consumption, or sufficient quantities of
its ingredients or of the goods from which said food items are
derived for a domestic processor, when the internal price of said
food item is maintained below the world price as part of a government
stabilization program, provided such taxes, levies, or charges
do not have the effect of increasing the protection granted to
said domestic industry and are sustained only for as long as necessary
to maintain the integrity of said program.
3. Notwithstanding the provision in Paragraph 1 above, each Party
may adopt or maintain a tax, levy or charge on the export of any
food item to the territory of another Party if said tax, levy,
or charge is applied temporarily to alleviate a critical shortage
of that food item. For the purposes of this paragraph, "temporarily"
means up to one year, or a longer period agreed to by all the
Parties.
4. Paragraph 1 shall not apply to the measures established in
Annex 2 of this Article.
Article 3-12: Country of Origin Marking
The annex to this Article applies to measures relating to country
of origin marking.
Section E - Publication and Notification
Article 3-13: Publication and Notification
1. No Party shall apply, prior to the official publication thereof,
any measure of a general nature that would have the effect of
increasing an import duty or other charge on the importation of
goods from another Party or the export of goods intended for another
Party, which imposes a new or more burdensome measure, restriction,
or prohibition for said imports or exports, or for the transfers
of funds relative thereto.
2. At the request of one Party, another Party shall identify in
terms of tariff item and corresponding nomenclature under the
Harmonized System, the measures, restrictions, or prohibitions
that apply to the import or export of goods for reasons of national
security, public health, and/or protection of flora or fauna,
the environment, and plant and animal health; as well as technical
standards, labeling requirements, international commitments, public
policy requirements, or any ether regulation.
Continues in Annex to Article 3-03
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