WORLD TRADE
ORGANIZATIONWT/REG147/1
30 January 2003
(03-0638)
Committee on Regional Trade Agreements Original:  English/
French/
Spanish
FREE TRADE AGREEMENT BETWEEN CANADA AND COSTA RICA
The following text reproduces the Free Trade Agreement between Canada and Costa Rica.*
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TABLE OF CONTENTS
Page
FREE TRADE AGREEMENT BETWEEN THE GOVERNMENT OF CANADA
AND THE GOVERNMENT OF THE REPUBLIC OF COSTA RICA                                            2
PREAMBLE                                                                                                                                            2
PART ONE: GENERAL PART                                                                                                              3
CHAPTER 1: OBJECTIVES                                                                                                                   3
CHAPTER 2: GENERAL DEFINITIONS                                                                                              4
PART TWO: TRADE IN GOODS                                                                                                          6
CHAPTER 3: NATIONAL TREATMENT AND MARKET ACCESS OF GOODS                             6
CHAPTER 4: RULES OF ORIGIN                                                                                                       60
CHAPTER 5: CUSTOMS PROCEDURES                                                                                           75
CHAPTER 6: EMERGENCY ACTION                                                                                                88
CHAPTER 7: ANTIDUMPING MEASURES                                                                                      94
PART THREE: SERVICES AND INVESTMENT                                                                              96
CHAPTER 8: SERVICES AND INVESTMENT                                                                                  96
PART FOUR: TRADE FACILITATION                                                                                             97
CHAPTER 9: TRADE FACILITATION AND ADDITIONAL PROVISIONS                                   97
CHAPTER 10: TEMPORARY ENTRY                                                                                              103
PARTE FIVE: COMPETITION POLICY                                                                                          104
CHAPTER 11: COMPETITION POLICY                                                                                          104
PART SIX: ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS                                      107
CHAPTER 12: PUBLICATION, NOTIFICATION AND ADMINISTRATION OF LAWS             107
CHAPTER 13: INSTITUTIONAL ARRANGEMENTS AND DISPUTE SETTLEMENT
PROCEDURES                                                                                                                                    109
PART SEVEN: OTHER PROVISIONS                                                                                             123
CHAPTER 14: EXCEPTIONS                                                                                                            123
CHAPTER 15: FINAL PROVISIONS                                                                                                 126
                                                     
* The full text of the Agreement together with its annexes is available at http://www.dfait-maeci.gc.ca/tna-
nac/Costa_Rica_toc-e.asp  and http://www.comex.go.cr   (in Spanish). It has also been submitted to the
Secretariat for consultation by interested Members (Office 1174).WT/REG147/1
Page 2
FREE TRADE AGREEMENT BETWEEN THE GOVERNMENT OF CANADA
AND THE GOVERNMENT OF THE REPUBLIC OF COSTA RICA
The Government of Canada and the Government of the Republic of Costa Rica, resolved to:
Strengthen the special bonds of friendship and cooperation among their peoples;
Contribute to the harmonious development and expansion of world and regional trade and
provide a catalyst to broader international cooperation;
Create new employment opportunities and improve working conditions and living standards
in their respective territories;
Recognize  the differences in the level of development and the size of the Parties economies
and create opportunities for economic development;
Create an expanded and secure market for the goods and services produced in their territories;
Reduce distortions to trade;
Establish clear and mutually advantageous rules governing their trade;
Ensure a predictable commercial framework for business planning and investment;
Recognize the importance of trade facilitation in promoting efficient and transparent
procedures to reduce costs, and to ensure predictability, for importers and exporters of the Parties;
Build on their respective rights and obligations under the WTO Agreement and other
multilateral and bilateral instruments of cooperation;
Promote regional integration with an instrument that will contribute to the establishment of
the Free Trade Area of the Americas (FTAA);
Enhance the competitiveness of their firms in global markets;
Ensure that the benefits of trade liberalization are not undermined by anticompetitive
activities;
Promote sustainable development;
Undertake each of the preceding in a manner consistent with environmental protection and
conservation;
Preserve their flexibility to safeguard the public welfare;
Recognize that States have the ability to preserve, develop and implement their cultural
policies for the purpose of strengthening cultural diversity; and
Recognize the increased cooperation between our countries on labour and environmental
cooperation;
Have Agreed as follows:WT/REG147/1
Page 3
PART ONE: GENERAL PART
CHAPTER I: OBJECTIVES
Article I.1
Establishment of the Free Trade Area
The Parties to this Agreement, consistent with Article XXIV of the General Agreement on
Tariffs and Trade 1994  which is part of the Marrakesh Agreement Establishing the World Trade
Organization , hereby establish a free trade area.
Article I.2
Objectives
1. The objectives of this Agreement are to:
(a) establish a free trade area in accordance with this Agreement;
(b) promote regional integration through an instrument that contributes to the
establishment of the Free Trade Area of the Americas (FTAA) and to the progressive
elimination of barriers to trade and investment;
(c) create opportunities for economic development;
(d) eliminate barriers to trade in, and facilitate the cross-border movement of goods
between the territories of the Parties;
(e) increase substantially investment opportunities in the territories of the Parties;
(f) facilitate trade in services and investment with a view to developing and deepening
the Parties’ relations under this Agreement;
(g) promote conditions of fair competition in the free trade area;
(h) establish a framework for further bilateral, regional and multilateral cooperation to
expand and enhance the benefits of this Agreement; and
(i) create effective procedures for the implementation and application of this Agreement,
for its joint administration and for the resolution of disputes.
2. The Parties shall interpret and apply the provisions of this Agreement in the light of its
objectives set out in paragraph 1 and in accordance with applicable rules of international law.
Article I.3
Relation to Other Agreements
1. The Parties affirm their existing rights and ob ligations with respect to each other under the
Marrakesh Agreement Establishing the World Trade Organization  and other agreements to which
such Parties are party.WT/REG147/1
Page 4
2. In the event of any inconsistency between this Agreement and such other agreements, this
Agreement shall prevail to the extent of the inco nsistency, except as otherwise provided in this
Agreement.
Article I.4
Relation to Environmental and Conservation Agreements
In the event of any inconsistency between this Agreement and the specific trade obligations
set out in:
(a) the Convention on International Trade in Endangered Species of Wild Fauna and
Flora , done at Washington, March 3, 1973, as amended June 22, 1979;
(b) the Montreal Protocol on Substances that Deplete the Ozone Layer , done at
Montreal, September 16, 1987, as amended June 29, 1990; or
(c) the Basel Convention on the Control of Transboundary Movements of Hazardous
Wastes and Their Disposal , done at Basel, March 22, 1989,
such obligations shall prevail to the extent of th e inconsistency, provided that where a Party has a
choice among equally effective and reasonably available means of complying with such obligations,
the Party chooses the alternative that is the least inconsistent with the other provisions of this
Agreement.
Article I.5
Extent of Obligations
Each Party is fully responsible for the observance of all provisions of this Agreement and
shall take such reasonable measures as may be available to it to ensure observance of the provisions ofthis Agreement by the regional and local governments and authorities within its territory.
CHAPTER II: GENERAL DEFINITIONS
Article II.1
Definitions of General Application
1. For purposes of this Agreement, unless otherwise specified:
citizen  means a citizen as defined in Annex II.1.1 for the Party specified in that Annex;
Commission  means the Free Trade Commission established under Article XIII.1 (The Free
Trade Commission);
Coordinators  means the Free Trade Coordinators established under Article XIII.2.1 (The
Free Trade Coordinators);
Customs Valuation Agreement  means the Agreement on Implementation of Article VII of
the General Agreement on Tariffs and Trade 1994 , including its interpretative notes, which is part of
the WTO Agreement;WT/REG147/1
Page 5
days  means calendar days, including weekends and holidays;
Dispute Settlement Understanding  (DSU) means the Understanding on Rules and
Procedures Governing the Settlement of Disputes , which is part of the WTO Agreement;
enterprise  means any entity constituted or organized under applicable law, whether or not for
profit, and whether privately-owned or governme ntally-owned, including any corporation, trust,
partnership, sole proprietorship, joint venture or other association;
existing  means in effect on the date of entry into force of this Agreement;
GATT 1994  means the General Agreement on Tariffs and Trade 1994 , which is part of the
WTO Agreement;
goods of a Party  means domestic products as these are understood in the GATT 1994  or such
goods as the Parties may agree, and includes originating goods of that Party;
Harmonized System  (HS) means the Harmonized Commodity Description and Coding
System , including its General Rules of Interpretation, Section Notes and Chapter Notes;
heading  means the four first digits in the tariff classification number under the Harmonized
System;
measure  includes any law, regulation, procedure, requirement or practice;
national  means a natural person who is a citizen or permanent resident of a Party;
originating  means qualifying under the rules of origin set out in Chapter IV (Rules of
Origin);
person  means a natural person or an enterprise;
person of a Party  means a national, or an enterprise of a Party;
province  means a province of Canada, and includes the Yukon Territory and the Northwest
Territories and Nunavut and their successors;
Secretariat  means the Secretariat established under Article XIII.3.1 (The Secretariat);
subheading  means the first six digits in the tariff classification number under the Harmonized
System;
tariff classification  means the classification of a good or material under a chapter, heading or
subheading or tariff subheading;
tariff elimination schedule  means the provisions of Annex III.2.2 (Tariff Elimination
Schedule);
territory  means for a Party the territory of that Party as set out in Annex II.1.1 (Country-
Specific Definitions); and
WTO Agreement  means the Marrakesh Agreement Establishing the World Trade
Organization , done on April 15, 1994, or any successor agreement to which both Parties are a party.WT/REG147/1
Page 6
2. For purposes of this Agreement, unless otherwise specified, a reference to a province includes
local governments of that province.
3. Country-specific definitions of national government  are set out in Annex II.1.1 (Country-
Specific Definitions).
ANNEX II.1.1: COUNTRY-SPECIFIC DEFINITIONS
For purposes of this Agreement, unless otherwise specified:
citizen  means:
(a) with respect to Canada, a natural person who is a citizen of Canada under the
Citizenship Act , R.S.C. 1985, c. C-29, as amended from time to time or under any
successor legislation; and
(b) with respect to Costa Rica, the Costa Ricans by birth, according to Article 13 of the
Political Constitution of the Republic of Costa Rica and the Costa Ricans by
naturalization, according to Article 14 of the Political Constitution of the Republic ofCosta Rica;
national government  means:
(a) with respect to Canada, the Government of Canada; and
(b) with respect to Costa Rica, the Government of the Republic of Costa Rica; and
territory  means:
(a) with respect to Canada, the territory to which its customs laws apply, including any
areas beyond the territorial seas of Canada within which, in accordance with
international law and its domestic law, Canada may exercise rights with respect to theseabed and subsoil and their natural resources; and
(b) with respect to Costa Rica, the territory and air space, and the maritime areas,
including the seabed and subsoil adjacent to the outer limit of the territorial sea, over
which it exercises, in accordance with international law and its domestic law,
sovereign rights with respect to the natural resources of such areas.
CHAPTER III: NATIONAL TREATMENT AND MARKET ACCESS OF GOODS
Article III.1
Scope And Coverage
This Chapter applies to trade in goods of a Party, including goods covered by Annex III.1
(Textile and Apparel Goods), except as provided in such Annex.WT/REG147/1
Page 7
Section I - National Treatment
Article III.2
National Treatment
1. Each 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 the
GATT 1994 and its interpretative notes, or any equi valent provision of a successor agreement to
which both Parties are party, are incorporated into and made part of this Agreement.
2. The provisions of paragraph 1 regarding national treatment shall mean, with respect to a
province, treatment no less favourable than the most  favourable treatment accorded by such province
to any like, directly competitive or substitutable goods, as the case may be, of the Party of which it
forms a part.1
3. Paragraphs 1 and 2 do not apply to the measures set out in Annex III.2 (Exceptions to Articles
III.2 and III.7).
Section II - Tariffs
Article III.3
Tariff Elimination2
1. Except as otherwise provided in this Agreement, neither Party may increase any existing
customs duty, or adopt any customs duty, on a good.3
2. Except as otherwise provided in this Agreement, each Party shall progressively eliminate its
customs duties on goods in accordance with its Schedule to Annex III.3.1 (Tariff Elimination)4 and
Annex III.3.2 (Special Safeguards).
3. During the tariff elimination process, the Par ties agree to apply to originating goods traded
between them, the lesser of the customs duties resulting from a comparison between the rate
established in accordance with the Tariff Elimination Schedule, and the existing rate pursuant to
Article II of GATT 1994.
4. On the request of a Party, the Parties shall consult to consider accelerating the elimination of
customs duties set out in their Schedules or incorporating into one Party’s Tariff Elimination Schedule
goods that are not subject to the elimination schedu le. An agreement between the Parties to accelerate
the elimination of a customs duty on a good or to include a good in the Tariff Elimination Schedule
shall supersede any duty rate or staging category determined pursuant to their Schedules for such
good when approved by each such Party in accordance with its applicable legal procedures.
                                                     
1 "Goods of a Party" includes goods produced in the province of that Party.
2 For the purpose of Article III.3, 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 notprevent 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.WT/REG147/1
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5. Except as otherwise provided in this Agreemen t, either Party may adopt or maintain import
measures to allocate in-quota imports made pursuant to a tariff rate quota set out in Annex III.3.1
(Tariff Elimination), provided that such measures do not have trade restrictive effects on imports
additional to those caused by the imposition of the tariff rate quota.
6. On written request of either Party, a Party applying or intending to apply measures pursuant to
paragraph 5 shall consult to review the administration of those measures.
Article III.4
Temporary Admission of Goods
1. Each Party shall grant duty-free temporary admission for:
(a) professional equipment necessary for carrying out the business activity, trade or
profession of a business person who qualifies for temporary entry pursuant to Chapter
X (Temporary Entry);
(b) equipment for the press or for sound or television broadcasting and cinematographic
equipment;
(c) goods imported for sports purposes and goods intended for display or demonstration;
and
(d) commercial samples and advertising films;
imported from the territory of the other Party, regardless of their origin and regardless of whether like,
directly competitive or substitutable goods are available in the territory of the Party.
2. Except as otherwise provided in this Agreement, neither Party may condition the duty-free
temporary admission of a good referred to in paragraph 1(a), (b) or (c), other than to require that such
good:
(a) be imported by a national or resident of the other Party who seeks temporary entry;
(b) be used solely by or under the personal supervision of such person in the exercise of
the business activity, trade or profession of that person;
(c) not be sold or leased while in its territory;
(d) be accompanied by a bond in an amount no greater than 110 per cent of the charges
that would otherwise be owed on entry or  final importation, or by another form of
security, releasable on exportation of the good, except that a bond for customs duties
shall not be required for an originating good;5
(e) be capable of identification when exported;
(f) be exported on the departure of that person or within such other period of time as is
reasonably related to the purpose of the temporary admission; and
                                                     
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.WT/REG147/1
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(g) be imported in no greater quantity than is reasonable for its intended use.
3. Except as otherwise provided in this Agreement, neither Party may condition the duty-free
temporary admission of a good referred to in paragraph 1(d), other than to require that such good:
(a) be imported solely for the solicitation of orders for goods, or services provided from
the territory, of the other Party or a non-Party;
(b) not be sold, leased or put to any use other than exhibition or demonstration while in
its territory;
(c) be capable of identification when exported;
(d) be exported within such period as is reasonably related to the purpose of the
temporary admission; and
(e) be imported in no greater quantity than is reasonable for its intended use.
4. Where a good is temporarily admitted duty-free under paragraph 1 and any condition the
Party imposes under paragraph 2 and 3 has not been fulfilled, a Party may impose:
(a) the customs duty and any other charge th at would be owed on entry or final
importation of the good; and
(b) any applicable criminal, civil or administrative penalties that the circumstances may
warrant.
5. Neither Party:
(a) shall prevent a vehicle or container used in in ternational traffic that enters its territory
from the territory of the other Party to exit its territory on any route that is reasonably
related to the economic and prompt departure of such vehicle or container;
(b) may require any bond or impose any penalty or charge solely by reason of any
difference between the port of entry and the port of departure of a vehicle or
container;
(c) may condition the release of any obligation, including any bond, that it imposes in
respect of the entry of a vehicle or container into its territory on its exit through any
particular port of departure; and
(d) may require that the vehicle or carrier bringing a container from the territory of the
other Party into its territory be the same vehicle or carrier that takes such container to
the territory of the other Party.
6. For purposes of paragraph 5, "vehicle" means a truck, a truck tractor, tractor, trailer unit or
trailer, a locomotive, or a railway car or other railroad equipment.WT/REG147/1
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Article III.5
Duty-Free Entry of Certain Commercial Samples and Printed Advertising Materials
Each Party shall grant duty-free entry to co mmercial samples of negligible value, and to
printed advertising materials, imported from the territo ry of the other Party, regardless of their origin,
but may require that:
(a) such samples be imported solely for the solicitation of orders for goods, or services
provided from the territory, of the other Party or a non-Party; or
(b) such advertising materials be imported in packets that each contain no more than one
copy of each such material and that neither such materials nor packets form part of alarger consignment.
Article III.6
Goods Re-Entered after Repair or Alteration
1. Neither Party may apply a customs duty to a good, regardless of its origin, that reenters its
territory after that good has been exported from its territory to the territory of the other Party for repair
or alteration, regardless of whether such repair or alteration could be performed in its territory.6
2. Neither Party may apply a customs duty to a good, regardless of its origin, imported
temporarily from the territory of the other Party for repair or alteration.
Section III - Non-Tariff Measures
Article III.7
Import and Export Restrictions
1. Except 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, includin g its interpretative notes, and to this end Article XI of the
GATT 1994 and its interpretative notes, or any equi valent provision of a successor agreement to
which both Parties are party, are incorporated into and made a part of this Agreement.
2. The Parties understand that the GATT 1994 rights and obligations incorporated by paragraph
1 prohibit, in any circumstances in which any other form of restriction is prohibited, export price
requirements and, except as permitted in enforcement of countervailing and antidumping orders and
undertakings, import price requirements.
3. In the event that a Party adopts or maintains a prohibition or restriction on the importation
from or exportation to a non-Party of a good, nothing in this Agreement shall be construed to prevent
the Party from:
                                                     
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.WT/REG147/1
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(a) limiting or prohibiting the importation from the territory of the other Party of such
good of that non-Party; or
(b) requiring as a condition of export of such good of the Party to the territory of the
other Party, that the good not be re-exported to the non-Party, directly or indirectly,
without being consumed in the territory of the other Party.
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, on request of the other Party, shall consult with a view to avoiding
undue interference with or distortion of pricing, marketing and distribution arrangements in the other
Party.
5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex III.2 (Exceptions to
Articles III.2 and III.7).
Article III.8
Wine and Distilled Spirits
1. Neither Party may adopt or maintain any measure requiring that distilled spirits imported from
the territory of the other Party for bottling be blended with any distilled spirits of the Party.
2. Annex III.8 (Wine and Distilled Spirits) applies to other measures relating to wine and
distilled spirits.
Article III.9
Geographical Indications
The Parties shall protect the geographical indications for their products according to their
rights and obligations set out in the Agreement on Trade Related Intellectual Property Rights ,
Annex 1C of the WTO Agreement, and any successor agreement to which both Parties are party.
Article III.10
Export Taxes
Subject to the provisions in Annex III.10 (Export Taxes), neither Party may adopt or maintain
any duty, tax or other charge on the export of any good to the territory of the other Party, unless such
duty, tax or charge is adopted or maintained on any such good when destined for domesticconsumption.
Article III.11
Other Export Measures
1. Except as set out in Annex III.2 (Exceptions to Articles III.2 and III.7), a Party may adopt or
maintain a restriction otherwise justified under Artic les XI.2 (a) or XX (g), (i) or (j) of the GATT
1994 with respect to the export of a good of the Party to the territory of the other Party, only if:
(a) the restriction does not reduce the proportion of the total export shipments of the
specific good made available to the other Party relative to the total supply of that
good of the Party maintaining the restriction as compared to the proportion prevailingWT/REG147/1
Page 12
in the most recent 36-month period for which data are available prior to the
imposition of the measure, or in such other representative period on which the Parties
may agree;
(b) the Party does not impose a higher price for exports of a good to the other Party than
the price charged for such good when consumed domestically, by means of anymeasure, such as licenses, fees, taxation and minimum price requirements. The
foregoing provision does not apply to a higher price that may result from a measure
taken pursuant to subparagraph (a) that only restricts the volume of exports; and
(c) the restriction does not require the disruption of normal channels of supply to the
other Party or normal proportions among  specific goods or categories of goods
supplied to the other Party.
2. The Parties shall cooperate in the maintenance and development of effective controls on the
export of each other's goods to a non-Party in implementing this Article.
Article III.12
Export Subsidies on Agricultural Goods
1. The Parties share the objective of the multilateral elimination of export subsidies for
agricultural goods and shall cooperate in an effort to achieve such an agreement.
2. Notwithstanding any other provisions of this Ag reement, the Parties agree to eliminate, as of
the date of entry into force of this Agreement, any form of export subsidy for agricultural goods
destined for the other Party, and to prevent the reintroduction of such subsidies in any form.
Article III.13
Domestic Support for Agricultural Goods
1. The Parties recognize that domestic support measures can be of crucial importance to their
agricultural sectors but may also have distorting effects on the production and trade of agricultural
goods.
2. The Parties agree to cooperate in the WTO negotiations on agriculture to achieve:
(a) the maximum possible reduction or elimination of production and trade distorting
domestic support, including support under “production limiting” or “blue box”
programs;
(b) an overall limit on the amount of domestic support of all types (“green”, “blue” and
“amber”);
(c) a review of the criteria for the “green box” category to ensure that “green” support
does not distort production and trade; and
(d) agreement that “green box” support should not be countervailable.
3. Pending the elimination of trade-distorting domestic support measures, if either Party
maintains such a measure which the other Party considers to be distortive of bilateral trade under this
Agreement, the Party applying the measure shall, at the request of the other Party, consult with a viewWT/REG147/1
Page 13
to making a best efforts endeavour to avoid nullif ication or impairment of concessions granted under
this Agreement.
Section IV - Consultations
Article III.14
Consultations and Committee on Trade in Goods and Rules of Origin
1. The Parties hereby establish a Committee on Trade in Goods and Rules of Origin, comprising
representatives of each Party.
2. The Committee shall meet periodically, and at any other time on the request of either Party or
the Commission, to ensure the effective implementation and administration of this Chapter, ChapterIV (Rules of Origin), Chapter V (Customs Proced ures), Chapter VI (Emergency Action), Chapter IX
(Trade Facilitation and Additional Provisions) and any Uniform Regulations. In this regard, the
Committee shall:
(a) monitor the implementation and administration by the Parties of this Chapter, Chapter
IV (Rules of Origin), Chapter V (Customs Procedures), Chapter VI (EmergencyAction), Chapter IX (Trade Facilitation and Additional Provisions) and any Uniform
Regulations to ensure their uniform interpretation;
(b) at the request of either party, review any proposed modification of or addition to this
Chapter, Chapter IV (Rules of Origin), Chapter V (Customs Procedures), Chapter VI
(Emergency Action), Chapter IX (Trade Facilitation and Additional Provisions) orany Uniform Regulations;
(c) recommend to the Commission any modification of or addition to this Chapter,
Chapter IV (Rules of Origin), Chapter V (Customs Procedures), Chapter VI
(Emergency Action), Chapter IX (Trade Facilitation and Additional Provisions) or
any Uniform Regulations and to any other provision of this Agreement as may berequired to conform with any change to the Harmonized System; and
(d) consider any other matter relating to the implementation and administration by the
Parties of this Chapter, Chapter IV (Rules of Origin), Chapter V (Customs
Procedures), Chapter VI (Emergency Action), Chapter IX (Trade Facilitation and
Additional Provisions) and any Uniform Regulations referred to it by:
(i) a Party;
(ii) the Customs Sub-Committee established under Article V.13 (The Customs
Sub-Committee); or
(iii) the Sub-Committee on Agriculture established under paragraph 4.
3. If the Committee fails to resolve a matter referred to it pursuant to paragraph 2 (b) or (d)
within 30 days of such referral, either Party ma y request a meeting of the Commission under Article
XIII.1 (The Free Trade Commission).
4. The Parties hereby establish a Sub-Committee on Agriculture that shall:WT/REG147/1
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(a) provide a forum for the Parties to consult on issues relating to market access for
agricultural goods;
(b) monitor the implementation and administration of this Chapter, Chapter IV (Rules of
Origin), Chapter VI (Emergency Action), Chapter IX (Trade Facilitation and
Additional Provisions) and any Uniform Regulations as they affect agriculturalgoods;
(c) meet periodically or whenever so requested by either Party;
(d) refer to the Committee any matter under sub-paragraph (b) on which it has been
unable to reach agreement;
(e) submit to the Committee for its consideration any agreement reached under this
paragraph;
(f) report to the Committee; and
(g) follow-up and promote cooperation in matters relating to agricultural goods.
5. Each Party shall to the greatest extent practicab le, take all necessary measures to implement
any modification of or addition to this Chapter, Chapter IV (Rules of Origin), Chapter V (Customs
Procedures), Chapter VI (Emergency Action), Chapter IX (Trade Facilitation and Additional
Provisions) and any Uniform Regulations within 180 days of the date on which the Commissionagrees on the modification or addition.
6. The Parties shall convene on the request of either Party a meeting of their officials responsible
for customs, immigration, inspection of food and agricultural products, border inspection facilities,
and regulation of transportation for the purpose of addressing issues related to movement of goods
through the Parties' ports of entry.
7. Nothing in this Chapter shall be construed to prevent a Party from issuing a determination of
origin or an advance ruling relating to a matter under consideration by the Committee or from taking
such other action as it considers necessary, pending a resolution of the matter under this Agreement.
Article III.15
Customs Valuation Agreement
The Customs Valuation Agreement and any successor Agreement shall govern the customs
valuation rules applied by the Parties to their reciprocal trade. The Parties agree that they will not
make use in their reciprocal trade of the options and reservations permitted under Article 20 and
paragraphs 2, 3 and 4 of Annex III of the Customs Valuation Agreement.
Section V - Definitions
Article III.16
Definitions
For purposes of this Chapter:WT/REG147/1
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advertising films  means recorded visual media, with or without sound-tracks, consisting
essentially of images showing the nature or operation of goods or services offered for sale or lease by
a person established or resident in the territory of any Party, provided that the films are of a kind
suitable for exhibition to prospective customers but not for broadcast to the general public, and
provided that they are imported in packets that each contain no more than one copy of each film andthat do not form part of a larger consignment;
agricultural goods  means the products listed in Annex 1 of the WTO Agreement on
Agriculture  with any subsequent changes agreed in the WTO to be automatically effective for this
Agreement.
commercial samples of negligible value  means commercial samples having a value,
individually or in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount
in the currency of either of the Parties, or so mark ed, torn, perforated or otherwise treated that they are
unsuitable for sale or for use except as commercial samples;
consumed  means:
(a) actually consumed; or
(b) further processed or manufactured so as to result in a substantial change in value,
form or use of the good or in the production of another good;
customs duty  includes any customs or import duty and a charge of any kind imposed in
connection with the importation of a good, including any form of surtax or surcharge in connection
with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article III:2 of the
GATT 1994, or any equivalent provision of a successor agreement to which bothParties are party, in respect of like, directly competitive or substitutable goods of the
Party, or in respect of goods from which the imported good has been manufactured or
produced in whole or in part;
(b) antidumping measure or countervailing duty that is applied pursuant to a Party's
domestic law and not applied inconsistently with Chapter VII (Antidumping
Measures);
(c) fee or other charge in connection with importation commensurate with the cost of
services rendered; and
(d) premium offered or collected on an imported good arising out of any tendering
system in respect of the administration of quantitative import restrictions, tariff rate
quotas or tariff preference levels;
distilled spirits  include distilled spirits and distilled spirit-containing beverages;
duty-free  means free of customs duties;
export subsidies  means subsidies contingent on export performance as defined in
Article 1.(e) of the WTO Agreement on Agriculture , with any subsequent changes agreed in the WTO
to be automatically effective for this Agreement;WT/REG147/1
Page 16
goods imported for sports purposes  means sports requisites for use in sports contests,
demonstrations or training in the territory of the Party into whose territory such goods are imported;
goods intended for display or demonstration  includes their component parts, ancillary
apparatus and accessories;
printed advertising materials  means those goods classified in Chapter 49 of the Harmonized
System, including brochures, pamphlets, leaflets , trade catalogues, yearbooks published by trade
associations, tourist promotional materials and posters, that are used to promote, publicize or advertise
a good or service, are essentially intended to advertise a good or service, and are supplied free of
charge;
repair or alteration  does not include an operation or process that either destroys the essential
characteristics of a good or creates a new or commercially different good;7
total export shipments  means all shipments from total supply to users located in the territory
of the other Party;
total supply  means all shipments, whether intended for domestic or foreign users, from:
(a) domestic production;
(b) domestic inventory; and
(c) other imports as appropriate.
ANNEX III.1: TEXTILE AND APPAREL GOODS
Section 1: Scope and Coverage1
1. This Annex applies to the textile and apparel goods set out in Appendix III.1.1.1.
2. In the event of any inconsistency between this Agreement and the WTO Agreement on
Textiles and Clothing (ATC) or any other existing or future agreement applicable to trade in textile or
apparel goods, this Agreement shall prevail to the extent of the inconsistency, unless the Parties agree
otherwise.
Section 2: Duty-free Treatment of Certain Goods
The Parties may identify at any time particular textile and apparel goods that they mutually
agree fall within:
(a) hand-loomed fabrics of a cottage industry;
(b) hand-made cottage industry goods made of such hand-loomed fabrics; or
                                                     
7 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 besubject to repair or alteration.
1 The general provisions of Chapter II (General Definitions), Chapter III (National Treatment and
Market Access of Goods), Chapter IV (Rules of Origin) and Chapter VI (Emergency Action) are subject to thespecific rules for textiles and apparel goods set out in this Annex.WT/REG147/1
Page 17
(c) traditional folklore handicraft goods.
The importing Party shall grant duty-free treatment to goods so identified, if certified by the
competent authority of the exporting Party.
Section 3: Elimination of Existing Quantitative Restrictions
Canada will eliminate, at the entry into force of this agreement, the existing restriction of
Costa Rican exports on underwear adopted under the rules of the Multi-Fibre Arrangement and lately
notified to the WTO, under the rules of the ATC.
Section 4: Bilateral Emergency Actions (Tariff Actions)2
1. Subject to paragraphs 2 through 5 and during the transition period only, if, as a result of the
reduction or elimination of a duty provided for in this Agreement, a textile or apparel good originating
in the territory of a Party, or a good that has been integrated into the WTO and entered under a tariff
preference level set out in Appendix 6.1, is being imported into the territory of the other Party in such
increased quantities, in absolute terms or relative to the domestic market for that good, and under suchconditions as to cause serious damage, or actual threat thereof, to a domestic industry producing a like
or directly competitive good, the importing Party may, to the minimum extent necessary to remedy
the damage or actual threat thereof:
(a) suspend the further reduction of any rate of duty provided for under this Agreement
on the good; or
(b) increase the rate of duty on the good to a level not to exceed the lesser of:
(i) the most-favoured-nation (MFN) applied rate of duty in effect at the time the
action is taken; and
(ii) the MFN applied rate of duty in effect on the day immediately preceding the
date of entry into force of this Agreement.
2. In determining serious damage, or actual threat thereof, the Party:
(a) shall examine the effect of increased quantities of those imports on the state of the
particular industry, as reflected in changes in such relevant economic variables as
output, productivity, utilisation of capacity, inventories, market share, exports, wages,
                                                     
2 For purposes of Sections 4 and 5:
(a) “increased quantities” is intended to be interpreted more broadly than the standard provided in
Article VI.2.1 (Bilateral Actions), which cons iders 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
VI.2.1 (Bilateral Actions). The “serious damage” standard is drawn from the WTO Agreementon Textiles and Clothing. The factors to be considered in determining whether the standardhas been met are set out in Section 4.2 and are also drawn from that Agreement. “Seriousdamage” is to be interpreted in the light of its meaning in that Agreement.WT/REG147/1
Page 18
employment, domestic prices, profits and investment, none of which, either alone or
combined with other factors is necessarily decisive; and
(b) shall not consider changes in technology or consumer preference as factors
supporting a determination of serious damage or actual threat thereof.
3. A Party shall deliver without delay to the other Party written notice of its intent to take such
action, and on request shall enter into consultations with that Party.
4. The following conditions and limitations apply to any emergency action taken under this
Section:
(a) no action may be maintained for a period exceeding three years or, except with the
consent of the Party against whose good the action is taken, have effect beyond the
expiration of the transition period;
(b) no action may be taken by a Party against any particular good originating in the
territory of the other Party more than once during the transition period; and
(c) on termination of the action, the rate of duty shall be the rate that, according to the
Schedule for the staged elimination of the tariff, would have been in effect one year
after the initiation of the action, and beginning January 1 of the year following the
termination of the action, at the option of the Party that has taken the action:
(i) the rate of duty shall conform to the applicable rate set out in that Party's
Schedule to Annex III.3.1 (Tariff Elimination); or
(ii) the tariff shall be eliminated in equal annual stages ending on the date set out
in that Party's Schedule to Annex III.3.1 (Tariff Elimination) for the
elimination of the tariff.
5. The Party taking an action under this section shall provide to the other Party mutually agreed
trade liberalizing compensation in the form of concessions having substantially equivalent trade
effects or equivalent to the value of the additional duties expected to result from the action. Such
concessions shall be limited to the textile and apparel goods set out in Appendix III.1.1.1, unless the
Parties otherwise agree. If the Parties are unable to agree on compensation, the exporting Party maytake tariff action having trade effects substantially equivalent to the action taken under this Section
against any goods imported from the other Party. The Party taking the tariff action shall only apply
the action for the minimum period necessary to achieve the substantially equivalent effects.
Section 5: Bilateral Emergency Actions (Quantitative Restrictions)
1. A Party may take bilateral emergency action against non-originating textile or apparel goods
that have not been integrated into the WTO and which enter into the territory of the other Party undera tariff preference level (TPL) in accord ance with this section and Appendix III.1.5.1.
2. If a Party demonstrates that a non-originating textile or apparel good entered under a tariff
preference level set out in Appendix III.1.6.1 is being imported into its territory from the other Party
in such increased quantities, in absolute terms or relative to the domestic market for that good, under
such conditions as to cause serious damage, or actual threat thereof, to a domestic industry producinga like or directly competitive good in the importing Party, the importing Party may request
consultations with the other Party with a view to  eliminating the serious damage or actual threat
thereof.WT/REG147/1
Page 19
3. The Party requesting consultations shall include in its request for consultations the reasons
that it considers demonstrate that such serious damage or actual threat thereof to its domestic industry
is resulting from the imports of the other Party, including the latest data concerning such damage or
threat thereof.
4. In determining serious damage, or actual threat thereof, the Party shall apply Section 4(2).
5. The Parties shall begin consultations within 60 days of the request for consultations and shall
endeavour to agree on a mutually satisfactory level of restraint on exports of the particular good
within 90 days of the request, unless the Parties agree to extend this period. The request for
consultations shall be accompanied by specific and relevant factual information, as up to date as
possible, particularly in regard to the factors stated in paragraphs 2, 3 and 4 of this section. The
information shall be related, as closely as possible, to identifiable segments of production and to the
reference period set out in paragraph 7. The Party taking the action shall also indicate the specificlevel at which imports of the product in question are proposed to be restrained; such level shall not be
lower than the level referred to in paragraph 7. In reaching a mutually satisfactory level of export
restraint, the Parties shall:
(a) consider the situation in the market in the importing Party;
(b) consider the history of trade in textile and apparel goods between the Parties,
including previous levels of trade; and
(c) seek to ensure that the textile and apparel goods imported from the territory of the
exporting Party are accorded equitable treatment as compared with treatment
accorded like textile and apparel goods from non-Party suppliers.
3
6. If the Parties do not agree on a mutually satisfactory level of export restraint, the Party
requesting consultations may impose annual quantitative restrictions on imports of the good from the
territory of the other Party, subject to paragraphs 7 through 13.
7. Any quantitative restriction imposed under paragraph 6 shall be no less than the sum of:
(a) the quantity of the good imported into the territory of the Party requesting
consultations from the other Party, as reported in general import statistics of theimporting Party, during the first 12 of the most recent 14 months preceding the month
in which the request for consultations was made; and
(b) 20 per cent of such quantity.
8. The period of any quantitative restriction imposed under paragraph 6 for the first year shall
begin on the day after the date on which the request for consultations was made and terminate at the
end of the calendar year in which the quantitative restriction is imposed. Any quantitative restriction
that is imposed for a period of less than 12 months shall be prorated to correspond to the timeremaining in the calendar year in which the restriction is imposed, and the prorated amount may be
adjusted in accordance with the flexibility provisions set out in Appendix III.1.5.1.
9. For each successive calendar year that the quantitative restriction imposed under paragraph 6
remains in effect, the Party imposing it shall:
                                                     
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 .WT/REG147/1
Page 20
(a) increase it by six per cent; and
(b) accelerate the growth rate for quantitative restrictions on cotton, man-made fibre and
non-cotton vegetable fibre textile and apparel goods as required by the WTO
Agreement on Textiles and Clothing;
and the flexibility provisions set out in Appendix III.1.5.1 apply.
10. A quantitative restriction imposed under paragraph 6 before July 1 in any calendar year may
remain in effect for the remainder of that year, plus two additional calendar years. Such a restriction
imposed on or after July 1 in any calendar year may remain in effect for the remainder of that year,
plus three additional calendar years. No such restriction may remain in effect beyond the transition
period or one year following the full integration into the WTO.
11. Neither Party may take an emergency action under this section with respect to any particular
textile or apparel non-originating good against which a quantitative restriction is in effect.
12. Neither Party may adopt or maintain a quantitative restriction under this section on a
particular textile or apparel good that otherwise would be permitted under this Annex, if that Party is
required to eliminate such measure under the WTO Agreement on Textiles and Clothing.
13. Neither Party may take a bilateral emergency action after the expiration of the transition
period with respect to cases of serious damage, or actual threat thereof, to domestic industry arising
from the operation of this Agreement.
Section 6: Special Provisions
Appendix III.1.6.1 sets out special provisions applicable to certain textile and apparel goods.
Section 7: Definitions
For purposes of this Annex:
average yarn number , as applied to woven fabrics of cotton or man-made fibres, means the
average yarn number of the yarns contained therein. In computing the average yarn number, the
length of the yarn is considered to be equal to the distance covered by it in the fabric, with all clipped
yarn being measured as if continuous and with the count being taken of the total single yarns in the
fabric including the single yarns in any multiple (folded) or cabled yarns. The weight shall be taken
after any excessive sizing is removed by boiling or other suitable process. Any of the following
formulas can be used to determine the average yarn number:
N    = BYT      , 100T      , BT or ST
1,000   Z'  Z 10
when:
N is the average yarn number,
B is the breadth (width) of the fabric in centimetres,
Y is the metres (linear) of the fabric per kilogram,
T is the total single yarns per square centimetre,S is the square metres of fabric per kilogram,
Z is the grams per linear metre of fabric, and
Z' is the grams per square metre of fabric.WT/REG147/1
Page 21
Fractions in the resulting "average yarn number" shall be disregarded;
exporting Party  means the Party from whose territory a textile or apparel good is exported;
flexibility provisions  means the provisions set out in Appendix III.1.5.1;
importing Party  means the Party into whose territory a textile or apparel good is imported;
integrated into the WTO  means subject to the obligations of the WTO Agreement;
product category  means a grouping of textile or apparel goods defined in the Correlation:
Textile and Apparel Categories with the Harmonized Tariff Schedule of the United States, 1995  (or
successor publication), published by the United States Department of Commerce, International Trade
Administration, Office of Textiles and Apparel,  Trade and Data Division, Washington, D.C.;
specific limit  means a level of exports for a particular textile or apparel good that may be
adjusted in accordance with Appendix III.1.5.1;
square metres equivalent (SME)  means that unit of measurement that results from the
application of the conversion factors set out in Appendix III.1.6.2 to a primary unit of measure such as
unit, dozen or kilogram;
tariff preference level (TPL)  means a mechanism that provides for the application customs
duty at a preferential rate to imports of a particular good up to a specified quantity, and at a different
rate to imports of that good that exceed that quantity;
transition period  means the seven-year period beginning on the date of entry into force of
this Agreement;
wool fabric  means:
(a) fabric in chief weight of wool;
(b) woven fabric in chief weight of man-made fibres containing 36 per cent or more by
weight of wool; and
(c) knitted or crocheted fabric in chief weight of man-made fibres containing 23 per cent
or more by weight of wool; and
WTO Agreement on Textiles and Clothing  means the Agreement on Textiles and Clothing
which is part of the WTO Agreement.WT/REG147/1
Page 22
APPENDIX III.1.1.1: LIST OF GOODS COVERED BY ANNEX III.1
Note : For purposes of reference only, descriptions are provided next to the corresponding item. For
legal purposes, coverage shall be determined  according to the terms of the Harmonized
System.
HS No. Description
Chapter 30 Pharmaceutical Products
3005.90 Wadding, gauze, bandages and the like
Chapter 39 Plastics and articles thereof
ex 3921.12 (Woven, knitted or non-woven fabric coated, covered or laminated with plastics)
ex 3921.13
ex 3921.90
Chapter 42 Articles of leather; saddlery and ha rness; travel goods, handbags and similar
containers
ex 4202.12 (Luggage, handbags and flatgoods with an outer surface predominantly of textile
materials)
ex 4202.22
ex 4202.32
ex 4202.92
Chapter 50 Silk
5004.00 Silk yarn (other than yarn spun from silk waste) not for retail sale
5005.00 Yarn spun from silk waste, not for retail sale
5006.00 Silk yarn and yarn spun from silk waste, for retail sale; silk-worm gut
5007.10 Woven fabric of noil silk
5007.20 Woven fabric of silk or silk waste, other than noil silk, 85% or more of such fibres5007.90 Woven fabric of silk, nes
Chapter 51 Wool, fine or coarse anim al hair, horsehair yarn and fabric
5105.10 Carded wool
5105.21 Combed wool in fragments
5105.29 Wool tops and other combed wool, other than combed wool in fragments
5105.30 Fine animal hair, carded or combed
5106.10 Yarn of carded wool, ≥85% wool, not for retail sale
5106.20 Yarn of carded, wool, <85% wool, not for retail sale
5107.10 Yarn of combed wool, ≥85% wool, not for retail sale
5107.20 Yarn of combed wool, <85% wool, not for retail sale
5108.10 Yarn of carded fine animal hair, not for retail sale5108.20 Yarn of combed fine animal hair, not for retail sale
5109.10 Yarn of wool or of fine animal hair, ≥85% wool and fine animal hair, for retail sale
5109.90 Yarn of wool/of fine animal hair, <85% wool and fine animal hair, for retail sale
5110.00 Yarn of coarse animal hair or of horsehairWT/REG147/1
Page 23
5111.11 Woven fabric of carded wool or fine animal hair, ≥85% wool and fine animal hair, ≤
300 g/m2
5111.19 Woven fabric of carded wool or fine animal hair, ≥85% wool or fine animal hair, >300
g/m2
5111.20 Woven fabric of carded wool or fine animal  hair, <85% wool or fine animal hair, with
man-made fibres
5111.30 Woven fabric of carded wool or fine animal  hair, <85% wool or fine animal hair, with
man-made fibres
5111.90 Woven fabric of carded wool or fine animal  hair, <85% wool or fine animal hair, nes
5112.11 Woven fabric of combed wool or fine animal hair, ≥85% wool or fine animal hair, ≤
200 g/m2
5112.19 Woven fabric of combed wool or fine animal hair, ≥85% wool or fine animal hair, >
200 g/m2
5112.20 Woven fabric of combed wool or fine animal  hair, <85% wool or fine animal hair, with
man-made filament
5112.30 Woven fabric of combed wool or fine animal  hair, <85% wool or fine animal hair, with
man-made fibres
5112.90 Woven fabric of combed wool or fine animal  hair, <85% wool or fine animal hair, nes
5113.00 Woven fabric of coarse animal hair or of horsehair
Chapter 52 Cotton
5204.11 Cotton sewing thread ≥85% cotton, not for retail sale
5204.19 Cotton sewing thread, <85% cotton, not for retail sale
5204.20 Cotton sewing thread, for retail sale
5205.11 Cotton yarn, ≥85% cotton, single, uncombed, ≥714.29 decitex, not for retail sale
5205.12 Cotton yarn, ≥85% cotton, single, uncombed, 714.29 >decitex ≥ 232.56, not for retail
sale
5205.13 Cotton yarn, ≥85% cotton, single, uncombed, 232.56 > decitex ≥ 192.31, not for retail
sale
5205.14 Cotton yarn, ≥85% cotton, single, uncombed, 192.31 >decitex ≥125, not for retail sale
5205.15 Cotton yarn, ≥85% cotton, single, uncombed, <125 decitex, not for retail sale
5205.21 Cotton yarn, ≥85% cotton, single, combed, ≥714.29, not for retail sale
5205.22 Cotton yarn, ≥85% cotton, single, combed, 714.29 >decitex ≥232.56, not for retail sale
5205.23 Cotton yarn, ≥85% cotton, single, combed, 232.56 >decitex ≥192.31, not for retail sale
5205.24 Cotton yarn, ≥85% cotton, single, combed, 192.31 >decitex ≥125, not for retail sale
5205.26 Cotton yarn, ≥85% cotton, single, combed, 125 >decitex ≥106.38, not for retail sale
5205.27 Cotton yarn, ≥85% cotton, single, combed, 106.38 >decitex ≥ 83.33, not for retail sale
5205.28 Cotton yarn, ≥85% cotton, single, combed, <83.33 decitex, not for retail sale
5205.31 Cotton yarn, ≥85% cotton, multiple, uncombed ≥714.29 decitex, not for retail sale, nes
5205.32 Cotton yarn, ≥85% cotton, multiple, uncombed, 714.29 >decitex ≥232.56, not for retail
sale, nes
5205.33 Cotton yarn, ≥85% cotton, multiple, uncombed, 232.56 >decitex ≥192.31, not for retail
sale, nes
5205.34 Cotton yarn, ≥85% cotton, multiple, uncombed, 192.31 >decitex ≥125, not for retail
sale, nes
5205.35 Cotton yarn, ≥85% cotton, multiple, uncombed, <125 decitex, not for retail sale, nes
5205.41 Cotton yarn, ≥85% cotton, multiple, combed, ≥714.29 decitex, not for retail sale, nes
5205.42 Cotton yarn, ≥85% cotton, multiple, combed, 714.29 >decitex ≥232.56, not for retail
sale, nesWT/REG147/1
Page 24
5205.43 Cotton yarn, ≥85% cotton, multiple, combed, 232.56 >decitex ≥192.31, not for retail
sale, nes
5205.44 Cotton yarn, ≥85% cotton, multiple, combed, 192.31 >decitex ≥125, not for retail sale,
nes
5205.46 Cotton yarn, ≥85% cotton, multiple, combed, 125 >decitex ≥106.38, not for retail sale,
nes
5205.47 Cotton yarn, ≥85% cotton, multiple, combed, 106.38 >decitex ≥83.33, not for retail
sale, nes
5205.48 Cotton yarn, <85% cotton, single, uncombed, <83.33 decitex, not for retail sale
5206.11 Cotton yarn, <85% cotton, single, uncombed, ≥714.29, not for retail sale
5206.12 Cotton yarn, <85% cotton, single, uncombed, 714.29 >decitex ≥232.56, not for retail
sale
5206.13 Cotton yarn, <85% cotton, single, uncombed, 232.56 >decitex ≥192.31, not for retail
sale
5206.14 Cotton yarn, <85% cotton, single, uncombed, 192.31 >decitex ≥125, not for retail sale
5206.15 Cotton yarn, <85% cotton, single, uncombed, <125 decitex, not for retail sale
5206.21 Cotton yarn, <85% cotton, single, combed, ≥714.29 decitex, not for retail sale
5206.22 Cotton yarn, <85% cotton, single, combed, 714.29 >decitex 232.56, not for retail sale
5206.23 Cotton yarn, <85% cotton, single, combed, 232.56 >decitex ≥192.31, not for retail sale
5206.24 Cotton yarn, <85% cotton, single, combed, 192.31 >decitex ≥ 125, not for retail sale
5206.25 Cotton yarn, <85% cotton, single, combed, <125 decitex, not for retail sale
5206.31 Cotton yarn, <85% cotton, multiple, uncombed, ≥714.29, not for retail sale, nes
5206.32 Cotton yarn, <85% cotton, multiple, uncombed, 714.29 >decitex ≥ 232.56,not for retail
sale, nes
5206.33 Cotton yarn, <85% cotton, multiple, uncombed, 232.56 >decitex ≥192.31, not for retail
sale, nes
5206.34 Cotton yarn, <85% cotton, multiple, uncombed, 192.31 >decitex ≥ 125, not for retail
sale, nes
5206.35 Cotton yarn, <85% cotton, multiple, uncombed, <125 decitex, not for retail sale, nes
5206.41 Cotton yarn, <85% cotton, multiple, combed, ≥714.29, not for retail sale, nes
5206.42 Cotton yarn, <85% cotton, multiple, combed, 714.29 >decitex 232.56, not for retail
sale, nes
5206.43 Cotton yarn, <85% cotton, multiple, combed, 232.56 >decitex ≥ 192.31, not for retail
sale, nes
5206.44 Cotton yarn, <85% cotton, multiple, combed, 192.31 >decitex ≥ 125, not for retail sale,
nes
5206.45 Cotton yarn, <85% cotton, multiple, combed, <125 decitex, not for retail sale, nes
5207.10 Cotton yarn (other than sewing thread) ≥85% cotton, for retail sale
5207.90 Cotton yarn (other than sewing thread) <85% cotton, for retail sale
5208.11 Plain weave cotton fabric, ≤85% cotton, ≤100g/m2, unbleached
5208.12 Plain weave cotton fabric, ≤85% cotton, >100g/m2, ≤200g/m2, unbleached
5208.13 Twill weave cotton fabric, ≥85% cotton, ≤200g/m2, unbleached
5208.19 Woven fabric of cotton ≥85% cotton, ≤200g/m2, unbleached, nes
5208.21 Plain weave cotton fabric, ≥85% cotton, ≤100g/m2, bleached
5208.22 Plain weave cotton fabric, ≥85% cotton, >100g/m2, ≤200g/m2, bleached
5208.23 Twill weave cotton fabric, ≥85% cotton, ≤200g/m2, bleached
5208.29 Woven fabric of cotton, ≥85% cotton, ≤200g/m2, bleached, nes
5208.31 Plain weave cotton fabric, ≥85% cotton, ≤100g/m2, dyed
5208.32 Plain weave cotton fabric, ≥85% cotton, >100g/m2, ≤200g/m2, dyed
5208.33 Twill weave cotton fabric, ≥85% cotton, ≤200g/m2, dyed
5208.39 Woven fabric of cotton, ≥85% cotton, ≤200g/m2, dyed, nesWT/REG147/1
Page 25
5208.41 Plain weave cotton fabric, ≥85% cotton, ≤100g/m2, yarn dyed
5208.42 Plain weave cotton fabric, ≥85% cotton, >100g/m2, ≤200 g/m2, yarn dyed
5208.43 Twill weave cotton fabric, ≥85% cotton, 200g/m2, yarn dyed
5208.49 Woven fabric of cotton, ≥85% cotton, ≤200g/m2, yarn dyed, nes
5208.51 Plain weave cotton fabric, ≥85% cotton, ≤100g/m2, printed
5208.52 Plain weave cotton fabric, ≥85% cotton, >100g/m2, ≤200 g/m2, printed
5208.53 Twill weave cotton fabric, ≥85% cotton, ≤200g/m2, printed
5208.59 Woven fabric of cotton, ≥85% cotton, ≤200g/m2, printed, nes
5209.11 Plain weave cotton fabric, ≥85% cotton, >200g/m2, unbleached
5209.12 Twill weave cotton fabric, ≥85% cotton, >200g/m2, unbleached
5209.19 Woven fabric of cotton, ≥85% cotton, >200g/m2, unbleached, nes
5209.21 Plain weave cotton fabric, ≥85% cotton, >200g/m2, bleached
5209.22 Twill weave cotton fabric, ≥85% cotton, >200g/m2, bleached
5209.29 Woven fabric of cotton, ≥85% cotton, >200g/m2, bleached, nes
5209.31 Plain weave cotton fabric, ≥85% cotton, >200g/m2, dyed
5209.32 Twill weave cotton fabric, ≥85% cotton, >200g/m2, dyed
5209.39 Woven fabric of cotton, ≥85% cotton, >200g/m2, dyed, nes
5209.41 Plain weave cotton fabric, ≥85% cotton, >200g/m2, yarn dyed
5209.42 Blue denim fabric of cotton, ≥85% cotton, >200g/m2
5209.43 Twill weave cotton fabric, other than denim, ≥85% cotton, >200g/m2, yarn dyed
5209.49 Woven fabric of cotton, ≥85% cotton, >200g/m2, yarn dyed, nes
5209.51 Plain weave cotton fabric, ≥85% cotton, >200g/m2, printed
5209.52 Twill weave cotton fabric, ≥85% cotton, >200g/m2, printed
5209.59 Woven fabric of cotton, ≥85% cotton, >200g/m2, printed, nes
5210.11 Plain weave cotton fabric, <85% cotton, with man-made fibre, ≤200g/m2, unbleached
5210.12 Twill weave cotton fabric, <85% cotton, with man-made fibre, ≤200g/m2, unbleached
5210.19 Woven fabric of cotton, <85% cotton, with man-made fibre, ≤200g/m2, unbleached,
nes
5210.21 Plain weave cotton fabric, <85% cotton, with man-made fibre, ≤200g/m2, bleached
5210.22 Twill weave cotton fabric, <85% cotton, with man-made fibre, ≤200g/m2, bleached
5210.29 Woven fabric of cotton, <85% cotton, with man-made fibre, ≤200g/m2, bleached, nes
5210.31 Plain weave cotton fabric, <85% cotton, with man-made fibre, ≤200g/m2, dyed
5210.32 Twill weave cotton fabric, <85% cotton, with man-made fibre, ≤200g/m2, dyed
5210.39 Woven fabric of cotton, <85% cotton, with man-made fibre, ≤200g/m2, dyed, nes
5210.41 Plain weave cotton fabric, <85% cotton, with man-made fibre, ≤200g/m2, yarn dyed
5210.42 Twill weave cotton fabric, <85% cotton, with man-made fibre, ≤200g/m2, yarn dyed
5210.49 Woven fabric of cotton, <85% cotton, with man-made fibre, ≤200g/m2, yarn dyed, nes
5210.51 Plain weave cotton fabric, <85% cotton, with man-made fibre, ≤200g/m2, printed
5210.52 Twill weave cotton fabric, <85% cotton, with man-made fibre, ≤200g/m2, printed
5210.59 Woven fabric of cotton, <85% cotton, with man-made fibre, ≤200g/m2, printed, nes
5211.11 Plain weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, unbleached
5211.12 Twill weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, unbleached5211.19 Woven fabric of cotton, <85% cotton, with man-made fibre, >200g/m2, unbleached,
nes
5211.21 Plain weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, bleached
5211.22 Twill weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, bleached
5211.29 Woven fabric of cotton, <85% cotton, with man-made fibre, >200g/m2, bleached, nes5211.31 Plain weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, dyed
5211.32 Twill weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, dyed
5211.39 Woven fabric of cotton, <85% cotton, with man-made fibre, >200g/m2, dyed, nesWT/REG147/1
Page 26
5211.41 Plain weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, yarn dyed
5211.42 Blue denim fabric of cotton, <85% cotton, with man-made fibre, >200g/m2
5211.43 Twill weave cotton fabric, other than denim, <85% cotton, with manmade fibre,
>200g/m2, yarn dyed
5211.49 Woven fabric of cotton, <85% cotton, with man-made fibre, >200g/m2, yarn dyed, nes5211.51 Plain weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, printed
5211.52 Twill weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, printed
5211.59 Woven fabric of cotton, <85% cotton, with man-made fibre, >200g/m2, printed, nes
5212.11 Woven fabric of cotton, weighing ≤200g/m2, unbleached, nes
5212.12 Woven fabric of cotton, weighing ≤200g/m2, bleached, nes
5212.13 Woven fabric of cotton, weighing ≤200g/m2, dyed, nes
5212.14 Woven fabric of cotton, ≤200g/m2, of yarns of different colours, nes
5212.15 Woven fabric of cotton, weighing ≤200g/m2, printed, nes
5212.21 Woven fabric of cotton, weighing >200g/m2, unbleached, nes
5212.22 Woven fabric of cotton, weighing >200g/m2, bleached, nes
5212.23 Woven fabric of cotton, weighing >200g/m2, dyed, nes5212.24 Woven fabric of cotton, >200g/m2, of yarns of different colours, nes
5212.25 Woven fabric of cotton, weighing >200g/m2, printed, nes
Chapter 53 Other vegetable textile fibres; paper yarn and woven fabric of paper yarn
5306.10 Flax yarn, single
5306.20 Flax yarn, multiple
5307.10 Yarn of jute or of other textile bast fibres, single
5307.20 Yarn of jute or other textile bast fibres, multiple
5308.20 True hemp yarn
5308.90 Yarn of other vegetable textile fibres
5309.11 Woven fabric, ≥85% flax, unbleached or bleached
5309.19 Woven fabric, ≥85% flax, other than unbleached or bleached
5309.21 Woven fabric of flax, <85% flax, unbleached or bleached
5309.29 Woven fabric of flax, <85% flax, other than unbleached or bleached5310.10 Woven fabric of jute or of other textile bast fibres, unbleached
5310.90 Woven fabric of jute or of other textile bast fibres, other than unbleached
5311.00 Woven fabric of other vegetable textile fibres; woven fabric of paper yarn
Chapter 54 Man-made filaments
5401.10 Sewing thread of synthetic filaments
5401.20 Sewing thread of artificial filaments
5402.10 High tenacity yarn (other than sewing thread), nylon or other polyamide fibre, not for
retail sale
5402.20 High tenacity yarn (other than sewing thread), of polyester filaments, not for retail sale
5402.31 Textured yarn nes, of nylon or other polyamide fibre, ≤50 tex/single yarn, not for retail
sale
5402.32 Textured yarn nes, of nylon or other polyamide fibre,>50 tex/single yarn, not for retail
sale
5402.33 Textured yarn nes, of polyester filaments, not for retail sale
5402.39 Textured yarn of synthetic filaments, nes, not for retail sale
5402.41 Yarn of nylon or other polyamide fibre, single, untwisted, nes, not for retail sale
5402.42 Yarn of polyester filaments, partially oriented, single, nes, not for retail sale
5402.43 Yarn of polyester filaments, single, untwisted, nes, not for retail sale5402.49 Yarn of synthetic filaments, single, untwisted, nes, not for retail saleWT/REG147/1
Page 27
5402.51 Yarn of nylon or other polyamide fibre, single, >50 turns per metre, not for retail sale
5402.52 Yarn of polyester filaments, single, >50 turns per metre, not for retail sale
5402.59 Yarn of synthetic filaments, single, >50 turns per metre, nes, not for retail sale
5402.61 Yarn of nylon or other polyamide fibre, multiple, nes, not for retail sale
5402.62 Yarn of polyester filaments, multiple, nes, not for retail sale5402.69 Yarn of synthetic filaments, multiple, nes, not for retail sale
5403.10 High tenacity yarn (other than sewing thread), of viscose rayon filaments, not for retail
sale
5403.20 Textured yarn nes, of artificial filaments, not for retail sale
5403.31 Yarn of viscose rayon filaments, single, untwisted, nes, not for retail sale
5403.32 Yarn of viscose rayon filaments, single, >120 turns per metre, nes, not for retail sale
5403.33 Yarn of cellulose acetate filaments, single, nes, not for retail sale5403.39 Yarn of artificial filaments, single, nes, not for retail sale
5403.41 Yarn of viscose rayon filaments, multiple, nes, not for retail sale
5403.42 Yarn of cellulose acetate filaments, multiple, nes, not for retail sale
5403.49 Yarn of artificial filaments, multiple, nes, not for retail sale
5404.10 Synthetic monofilament, ≥67 decitex, no cross sectional dimension >1 mm
5404.90 Strip and the like of synthetic textile material of an apparent width ≤5mm
5405.00 Artificial monofil, 67 decitex, cross secti onal dimension >1mm; strip of art. tex. mat.
width ≤5mm
5406.10 Yarn of synthetic filaments (other than sewing thread), for retail sale
5406.20 Yarn of artificial filaments (other than sewing thread), for retail sale
5407.10 Woven fabric of high tenacity filament yarn of nylon or other polyamides, or polyester
5407.20 Woven fabric obtained from strip or the like of synthetic textile materials
5407.30 Fabric specified in Note 9 Section XI (layers of parallel synthetic textile yarn)
5407.41 Woven fabric, ≥85% nylon or other polyamide filaments, unbleached or bleached, nes
5407.42 Woven fabric, ≥85% nylon or other polyamide filaments, dyed, nes
5407.43 Woven fabric, ≥85% nylon or other polyamide filaments, yarn dyed, nes
5407.44 Woven fabric, ≥85% nylon or other polyamide filaments, printed, nes
5407.51 Woven fabric, ≥85% textured polyester filaments, unbleached or bleached, nes
5407.52 Woven fabric, ≥85% textured polyester filaments, dyed, nes
5407.53 Woven fabric, ≥85% textured polyester filaments, yarn dyed, nes
5407.54 Woven fabric, ≥85% textured polyester filaments, printed, nes
5407.61 Woven fabric, ≥85% non-textured polyester filaments, nes
5407.69 Woven fabric, ≥85% other polyester filaments, nes
5407.71 Woven fabric, ≥85% synthetic filaments, unbleached or bleached, nes
5407.72 Woven fabric, ≥85% synthetic filaments, dyed, nes
5407.73 Woven fabric, ≥85% synthetic filaments, yarn dyed, nes
5407.74 Woven fabric, ≥85% synthetic filaments, printed, nes
5407.81 Woven fabric of synthetic filaments, <85% syn. filaments, with cotton, unbl or bl, nes
5407.82 Woven fabric of synthetic filaments, <85% with cotton, dyed, nes5407.83 Woven fabric of synthetic filaments, <85% with cotton, yarn dyed, nes
5407.84 Woven fabric of synthetic filaments, <85% with cotton, printed, nes
5407.91 Woven fabric of synthetic filaments, unbleached or bleached, nes
5407.92 Woven fabric of synthetic filaments, dyed, nes
5407.93 Woven fabric of synthetic filaments, yarn dyed, nes5407.94 Woven fabric of synthetic filaments, printed, nes
5408.10 Woven fabric of high tenacity filament yarn of viscose rayon
5408.21 Woven fabric, ≥85% artificial filament or strip, unbleached or bleached, nes
5408.22 Woven fabric, ≥85% artificial filament or strip, dyed, nes
5408.23 Woven fabric, ≥85% artificial filament or strip, yarn dyed, nesWT/REG147/1
Page 28
5408.24 Woven fabric, ≥85% artificial filament or strip, printed, nes
5408.31 Woven fabric of artificial filaments, unbleached or bleached, nes
5408.32 Woven fabric of artificial filaments, dyed, nes
5408.33 Woven fabric of artificial filaments, yarn dyed, nes
5408.34 Woven fabric of artificial filaments, printed, nes
Chapter 55 Man-made staple fibres
5501.10 Filament tow of nylon or other polyamides
5501.20 Filament tow of polyesters5501.30 Filament tow of acrylic or modacrylic
5501.90 Synthetic filament tow, nes
5502.00 Artificial filament tow
5503.10 Staple fibres of nylon or other polyamides, not carded or combed
5503.20 Staple fibres of polyesters, not carded or combed5503.30 Staple fibres of acrylic or modacrylic, not carded or combed
5503.40 Staple fibres of polypropylene, not carded or combed
5503.90 Synthetic staple fibres, not carded or combed, nes
5504.10 Staple fibres of viscose, not carded or combed
5504.90 Artificial staple fibres, other than viscose, not carded or combed
5505.10 Waste of synthetic fibres
5505.20 Waste of artificial fibres5506.10 Staple fibres of nylon or other polyamides, carded or combed
5506.20 Staple fibres of polyesters, carded or combed
5506.30 Staple fibres of acrylic or modacrylic, carded or combed
5506.90 Synthetic staple fibres, carded or combed, nes
5507.00 Artificial staple fibres, carded or combed5508.10 Sewing thread of synthetic staple fibres
5508.20 Sewing thread of artificial staple fibres
5509.11 Yarn, ≥85% nylon or other polyamide staple fibres, single, not for retail sale
5509.12 Yarn, ≥85% nylon or other polyamide staple fibres, multiple, not for retail sale, nes
5509.21 Yarn, ≥85% of polyester staple fibres, single, not for retail sale
5509.22 Yarn, ≥85% of polyester staple fibres, multiple, not for retail sale, nes
5509.31 Yarn, ≥85% of acrylic or modacrylic staple fibres, single, not for retail sale
5509.32 Yarn, ≥85% acrylic/modacrylic staple fibres, multiple, not for retail sale, nes
5509.41 Yarn, ≥85% of other synthetic staple fibres, single, not for retail sale
5509.42 Yarn, ≥85% of other synthetic staple fibres, multiple, not for retail sale, nes
5509.51 Yarn of polyester staple fibres mixed with artificial staple fibre, not for retail sale, nes
5509.52 Yarn of polyester staple fibre mixed with wool or fine animal hair, not for retail sale,
nes
5509.53 Yarn of polyester staple fibres mixed with cotton, not for retail sale, nes
5509.59 Yarn of polyester staple fibres, not for retail sale, nes
5509.61 Yarn of acrylic staple fibre mixed with wool or fine animal hair, not for retail sale, nes
5509.62 Yarn of acrylic staple fibres mixed with cotton, not for retail sale, nes5509.69 Yarn of acrylic staple fibres, not for retail sale, nes
5509.91 Yarn of other synthetic staple fibres mixed with wool or fine animal hair, not for retail
sale, nes
5509.92 Yarn of other synthetic staple fibres mixed with cotton, not for retail sale, nes
5509.99 Yarn of other synthetic staple fibres, not for retail sale, nes
5510.11 Yarn, ≥85% of artificial staple fibres, single, not for retail sale
5510.12 Yarn, ≥85% of artificial staple fibres, multiple, not for retail sale, nes
5510.20 Yarn of artificial staple fibre mixed with wool/fine animal hair, not for retail sale, nesWT/REG147/1
Page 29
5510.30 Yarn of artificial staple fibres mixed with cotton, not for retail sale, nes
5510.90 Yarn of artificial staple fibres, not for retail sale, nes
5511.10 Yarn, ≥85% of synthetic staple fibres, other than sewing thread, for retail sale
5511.20 Yarn, <85% of synthetic staple fibres, for retail sale, nes
5511.30 Yarn of artificial fibres (other than sewing thread), for retail sale
5512.11 Woven fabric, ≥85% of polyester staple fibres, unbleached or bleached
5512.19 Woven fabric, ≥85% of polyester staple fibres, other than unbleached or bleached
5512.21 Woven fabric, ≥85% of acrylic staple fibres, unbleached or bleached
5512.29 Woven fabric, ≥85% of acrylic staple fibres, other than unbleached or bleached
5512.91 Woven fabric, ≥85% of other synthetic staple fibres, unbleached or bleached
5512.99 Woven fabric, ≥85% of other synthetic staple fibres, other than unbleached or bleached
5513.11 Plain weave polyester fabric, <85% syn stple fibre, with cot, ≤170g/m2, unbl or bl
5513.12 Twill weave polyester staple fibre fabric, <85% syn. staple fibre, with cotton,
≤170g/m2, unbl or bl
5513.13 Woven polyester fabric, <85% synthetic stple fibre, with cotton, ≤170g/m2, unbl or bl,
nes
5513.19 Woven fabric of other synthetic staple fibre, <85% syn. stpl fib, with cotton, ≤170g/m2,
unbl or bl
5513.21 Plain weave polyester staple fibre fabric,<85% synthetic staple fibre, with cotton,
≤170g/m2, dyed
5513.22 Twill weave polyester staple fibre fabric,<85% synthetic staple fibre, with cotton,
≤170g/m2, dyed
5513.23 Woven fabric of polyester staple fibre, <85% syn. staple fibre, with cotton, ≤170g/m2,
dyed, nes
5513.29 Woven fabric of other synthetic staple fibre, <85% syn. staple fibre, with cotton,
≤170g/m2, dyed
5513.31 Plain weave polyester staple fibre fabric, <85% syn. staple fibre, with cotton,
≤170g/m2, yarn dyed
5513.32 Twill weave polyester staple fibre fabric, <85% syn. staple fibre, with cotton,
≤170g/m2, yarn dyed
5513.33 Woven fabric of polyester staple fibre, <85% syn. staple fibre, with cotton, ≤170g/m2,
dyed nes
5513.39 Woven fabric of other synthetic staple fibre, <85% syn. staple fibre, with cotton,
≤170g/m2, yarn dyed
5513.41 Plain weave polyester staple fibre fabric, <85% syn. stpl fibre, with cotton, ≤170g/m2,
printed
5513.42 Twill weave polyester staple fibre fabric, <85% syn. staple fibre, with cotton, 170g/m2,
printed
5513.43 Woven fabric of polyester staple fibre, <85% syn staple fibre, with cotton, ≤170g/m2,
printed, nes
5513.49 Woven fabric of other synthetic staple fibre, <85% syn. staple fibre, with cotton,
≤170g/m2, printed
5514.11 Plain weave polyester staple fibre fabric, <85% syn. staple fibre, with cotton,
>170g/m2, unbl or bl
5514.12 Twill weave polyester staple fibre fabric, <85% syn. staple fibre, with cotton,
>170g/m2, unbl or bl
5514.13 Woven fabric of polyester staple fibre, <85% syn. stpl fibre, with cotton, >170g/m2,
unbl or bl, nes
5514.19 Woven fabric of other synthetic staple fibr e, <85% syn stpl. fib, with cotton, >170g/m2,
unbl or blWT/REG147/1
Page 30
5514.21 Plain weave polyester staple fibre fabric, <85% syn staple fibre, with cotton,
>170g/m2, dyed
5514.22 Twill weave polyester staple fibre fabric, <85% synthetic staple fibre, with cotton,
>170g/m2, dyed
5514.23 Woven fabric of polyester staple fibre, <85% synthetic staple fibre, with cotton,
>170g/m2, dyed
5514.29 Woven fabric of other synthetic staple fibre, <85% synthetic staple fibre, with cotton,
>170g/m2, dyed
5514.31 Plain weave polyester staple fibre fabric, <85% syn. staple fibre, with cotton,
>170g/m2, yarn dyed
5514.32 Twill weave polyester staple fibre fabric, <85% mixed with cotton, >170g/m2, yarn
dyed
5514.33 Woven fabric of polyester staple fibre, <85% syn. staple fibre, with cotton, >170g/m2,
yarn dyed nes
5514.39 Woven fabric of other synthetic staple fibre, <85% syn. stpl fibre, with cotton,
>170g/m2, yarn dyed
5514.41 Plain weave polyester staple fibre fabric, <85% synthetic staple fibre, with cotton,
>170g/m2, printed
5514.42 Twill weave polyester staple fibre fabric, <85% synthetic staple fibre, with cotton,
>170g/m2, printed
5514.43 Woven fabric of polyester staple fibres <85% syn. staple fibre, with cotton, >170g/m2,
printed, nes
5514.49 Woven fabric of other synthetic staple fibre, <85% syn. staple fibre, with cotton,
>170g/m2, printed
5515.11 Woven fabric of polyester staple fibre, with viscose rayon staple fibre, nes
5515.12 Woven fabric of polyester staple fibre, with man-made filaments, nes
5515.13 Woven fabric of polyester staple fibre, with wool or fine animal hair, nes5515.19 Woven fabric of polyester staple fibre, nes
5515.21 Woven fabric of acrylic staple fibre, with man-made filaments, nes
5515.22 Woven fabric of acrylic staple fibre, with wool or fine animal hair, nes
5515.29 Woven fabric of acrylic or modacrylic staple fibres, nes
5515.91 Woven fabric of other synthetic staple  fibre, with man-made filaments, nes
5515.92 Woven fabric of other synthetic staple fi bre, with wool or fine animal hair, nes
5515.99 Woven fabric of synthetic staple fibres, nes
5516.11 Woven fabric, ≥85% artificial staple fibre, unbleached or bleached
5516.12 Woven fabric, ≥85% artificial staple fibre, dyed
5516.13 Woven fabric, ≥85% artificial staple fibre, yarn dyed
5516.14 Woven fabric, ≥85% artificial staple fibre, printed
5516.21 Woven fabric of artificial staple fibre, <85% artificial staple fibre, with man-made fib,
unbl or bl
5516.22 Woven fabric of artificial staple fibre, <85% artificial staple fibre, with man-made fib,
dyed
5516.23 Woven fabric of artificial staple fibre, <85% artificial staple fibre, with man-made fib,
yarn dyed
5516.24 Woven fabric of artificial staple fibre, <85% artificial staple fibre, with man-made fib,
printed
5516.31 Woven fabric of artificial staple fibre, <85% art stpl fibre, with wool/fine animal hair,
unbl or bl
5516.32 Woven fabric of artificial staple fibre, <85% art staple fibre, mixed mainly or solely
with wool/fine animal hair, dyed
5516.33 Woven fabric of artificial staple fibre, <85% art staple fibre, mixed mainly or solely
with wool/fine animal hair, yarn dyedWT/REG147/1
Page 31
5516.34 Woven fabric of artificial staple fibre, <85% art staple fibre, mixed mainly or solely
with wool/fine animal hair, printed
5516.41 Woven fabric of artificial staple fibre, <85% artificial staple fibre, with cotton, unbl or
bl
5516.42 Woven fabric of artificial staple fibre, <85% artificial staple fibre, with cotton, dyed5516.43 Woven fabric of artificial staple fibre, <85% artificial staple fibre, with cotton, yarn
dyed
5516.44 Woven fabric of artificial staple fibre, <85% artificial staple fibre, with cotton, printed
5516.91 Woven fabric of artificial staple fibre, unbleached or bleached, nes
5516.92 Woven fabric of artificial staple fibre, dyed, nes
5516.93 Woven fabric of artificial staple fibre, yarn dyed, nes
5516.94 Woven fabric of artificial staple fibre, printed, nes
Chapter 56 Wadding, felt and nonwovens; special yarns, twine, cordage, ropes and cables and
articles thereof
5601.10 Sanitary articles of wadding of textile materials, including sanitary towels, tampons,
and diapers
5601.21 Wadding of cotton and articles thereof, other than sanitary articles
5601.22 Wadding of man-made fibres and articles thereof, other than sanitary articles
5601.29 Wadding of other textile materials and articles thereof, other than sanitary articles
5601.30 Textile flock and dust and mill neps5602.10 Needleloom felt and stitch-bonded fibre fabric
5602.21 Felt other than needleloom, of wool or fine animal hair, not impregnated, coated,
covered or laminated
5602.29 Felt other than needleloom, of other textile materials, not impregnated, coated, covered
or laminated
5602.90 Felt of textile materials, nes
5603.11 Nonwovens, whether or not impregnated, coated, covered or laminated, of man-made
filaments, ≤25g/m2
5603.12 Nonwovens, whether or not impregnated, coated, covered or laminated, of man-made
filaments, >25g/m2 but ≤70g/m2
5603.13 Nonwovens, whether or not impregnated, coated, covered or laminated, of man-made
filaments, >70g/m2 but ≤150g/m2
5603.14 Nonwovens, whether or not impregnated, coated, covered or laminated, of man-made
filaments, >150g/m2
5603.91 Nonwovens, whether or not impregnated, coated, covered or laminated, other, ≤25g/m2
5603.92 Nonwovens, whether or not impregnated, coated, covered or laminated, other, >25g/m2
but ≤70g/m2
5603.93 Nonwovens, whether or not impregnated, coated, covered or laminated, other, >70g/m2
but ≤150g/m2
5603.94 Nonwovens, whether or not impregnated, coated, covered or laminated, other,
>150g/m2
5604.10 Rubber thread and cord, textile covered
5604.20 High tenacity yarn of polyester, nylon other polyamide, viscose rayon, impregnated or
coated
5604.90 Textile yarn, strip, impregnated, coated, covered or sheathed with rubber or plastics nes
5605.00 Metallized yarn, being textile yarn combined with metal thread, strip, or powder5606.00 Gimped yarn nes; chenille yarn; loop wale-yarn
5607.10 Twine, cordage, ropes and cables, of jute or other textile bast fibres
5607.21 Binder or baler twine, of sisal or other textile fibres of the genus Agave
5607.29 Twine nes, cordage, ropes and cables, of sisal textile fibresWT/REG147/1
Page 32
5607.30 Twine, cordage, ropes and cables, of abaca or other hard (leaf) fibres
5607.41 Binder or baler twine, of polyethylene or polypropylene
5607.49 Twine nes, cordage, ropes and cables, of polyethylene or polypropylene
5607.50 Twine, cordage, ropes and cables, of other synthetic fibres
5607.90 Twine, cordage, ropes and cables, of other materials5608.11 Made up fishing nets, of man-made textile materials
5608.19 Knotted netting of twine, cordage, or rope, and other made up nets of man-made textile
materials
5608.90 Knotted netting of twine, cordage, or rope, nes, and made up nets of other textile
materials
5609.00 Articles of yarn, strip, twine, cordage, rope and cables, nes
Chapter 57 Carpets and other textile floor coverings
5701.10 Carpets of wool or fine animal hair, knotted
5701.90 Carpets of other textile materials, knotted
5702.10 Kelem, Schumacks, Karamanie and similar textile hand-woven rugs5702.20 Floor coverings of coconut fibres (coir)
5702.31 Carpets of wool or fine animal hair, of woven pile construction, not made up, nes
5702.32 Carpets of man-made textile materials, of woven pile construction, not made up, nes
5702.39 Carpets of other textile materials, of woven pile construction, not made up, nes
5702.41 Carpets of wool or fine animal hair , of woven pile construction, made up, nes
5702.42 Carpets of man-made textile materials, of woven pile construction, made up, nes
5702.49 Carpets of other textile materials, of woven pile construction, made up, nes
5702.51 Carpets of wool or fine animal hair, woven, not made up, nes
5702.52 Carpets of man-made textile materials, woven, not made up, nes
5702.59 Carpets of other textile materials, woven, not made up, nes5702.91 Carpets of wool or fine animal hair, woven, made up, nes
5702.92 Carpets of man-made textile materials, woven, made up, nes
5702.99 Carpets of other textile materials, woven, made up, nes
5703.10 Carpets of wool or fine animal hair, tufted
5703.20 Carpets of nylon or other polyamide, tufted
5703.30 Carpets of other man-made textile materials, tufted
5703.90 Carpets of other textile materials, tufted5704.10 Tiles of felt of textile materials, having a maximum surface area of 0.3 m2
5704.90 Carpets of felt of textile materials, nes
5705.00 Carpets and other textile floor coverings, nes
Chapter 58 Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings;
embroidery
5801.10 Woven pile fabric of wool or fine animal hair, other than terry and narrow fabric
5801.21 Woven uncut weft pile fabric of cotton, other than terry and narrow fabric
5801.22 Cut corduroy fabric of cotton, other than narrow fabric5801.23 Woven weft pile fabric of cotton, nes
5801.24 Woven warp pile fabric of cotton, epingle (uncut), other than terry and narrow fabric
5801.25 Woven warp pile fabric of cotton, cut, other than terry and narrow fabric
5801.26 Chenille fabric of cotton, other than narrow fabric
5801.31 Woven uncut weft pile fabric of manmade fibres, other than terry and narrow fabric5801.32 Cut corduroy fabric of man-made fibres, other than narrow fabric
5801.33 Woven weft pile fabric of man-made fibres, nes
5801.34 Woven warp pile fabric of man-made fibre, epingle (uncut),other than terry and narrow
fabricWT/REG147/1
Page 33
5801.35 Woven warp pile fabric of man-made fibre, cut, other than terry and narrow fabric
5801.36 Chenille fabric of man-made fibres, other than narrow fabric
5801.90 Woven pile fabric and chenille fabric of other textile materials, other than terry and
narrow fabric
5802.11 Terry toweling and similar woven terry fabric of cotton, other than narrow fabric,
unbleached
5802.19 Terry toweling and similar woven terry fabric of cotton, other than unbleached or
narrow fabric
5802.20 Terry toweling and similar woven terry fabric of other textile materials, other than
narrow fabric
5802.30 Tufted textile fabric, other than products of heading No 57.03
5803.10 Gauze of cotton, other than narrow fabric5803.90 Gauze of other textile material, other than narrow fabric
5804.10 Tulles and other net fabric, not including woven, knitted or crocheted fabric
5804.21 Mechanically made lace of man-made fibre, in the piece, in strips or motifs
5804.29 Mechanically made lace of other textile materials, in the piece, in strips or in motifs
5804.30 Hand-made lace, in the piece, in strips or in motifs5805.00 Hand-woven tapestries and needle-worked tapestries, whether or not made up
5806.10 Narrow woven pile fabric and narrow chenille fabric
5806.20 Narrow woven fabric, containing ≥5% elastomeric yarn or rubber thread, nes
5806.31 Narrow woven fabric of cotton, nes
5806.32 Narrow woven fabric of man-made fibres, nes5806.39 Narrow woven fabric of other textile materials, nes
5806.40 Fabric consisting of warp without we ft, assembled by means of an adhesive
5807.10 Labels, badges and similar woven articles of textile materials
5807.90 Labels, badges and similar articles, not woven, of textile materials, nes
5808.10 Braids in the piece5808.90 Ornamental trimmings in the piece, other than knit; tassels, pompons and similar
articles
5809.00 Woven fabric of metal thread or metallized yarn, for apparel, and home furnishings, nes
5810.10 Embroidery without visible ground, in the piece, in strips or in motifs
5810.91 Embroidery of cotton, in the piece, in strips or in motifs, nes5810.92 Embroidery of man-made fibres, in the piece, in strips or in motifs, nes
5810.99 Embroidery of other textile materials, in the piece, in strips or motifs, nes
5811.00 Quilted textile products in the piece
Chapter 59 Impregnated, coated, covered, laminated textile fabric; textile articles suitable for
industrial use
5901.10 Textile fabric coated with gum, of a kind used for outer covers of books or the like
5901.90 Tracing cloth; prepared painting canvas; stiffened textile fabric for hats, nes
5902.10 Tire cord fabric of high tenacity nylon or other polyamide yarn5902.20 Tire cord fabric of high tenacity polyester yarn
5902.90 Tire cord fabric made of high tenacity viscose rayon yarn
5903.10 Textile fabric impregnated, coated, covered, or laminated with polyvinyl chloride, nes
5903.20 Textile fabric impregnated, coated, covered, or laminated with polyurethane, nes
5903.90 Textile fabric impregnated, coated, covered, or laminated with plastics, nes
5904.10 Linoleum, whether or not cut to shape
5904.91 Floor coverings, other than linoleum, with a base of needleloom felt or nonwovens5904.92 Floor coverings, other than linoleum, with other textile base
5905.00 Textile wall coverings
5906.10 Rubberized textile adhesive tape of a width not exceeding 20 cmWT/REG147/1
Page 34
5906.91 Rubberized textile knitted or crocheted fabric, nes
5906.99 Rubberized textile fabric, nes
5907.00 Textile fabric impregnated, coated, covered, nes; painted canvas for theatre use,
backdrops, etc.
5908.00 Textile wicks for lamps, stoves, candles or the like; gas mantles and knitted gas mantle
fabric
5909.00 Textile hosepiping and similar textile tubing
5910.00 Transmission or conveyor belts or belting of textile material whether or not reinforced
5911.10 Felt and felt-lined woven fabric combined with rubber, leather, or other material, for
technical uses
5911.20 Textile bolting cloth, whether or not made up
5911.31 Textile fabric, endless or linked, for paper-making or similar machines, weighing <650
g/m2
5911.32 Textile fabric, endless or linked, for paper-making or similar machines, weighing ≥650
g/m2
5911.40 Textile straining cloth used in oil presses or the like, including of human hair
5911.90 Textile products and articles for technical uses, nes
Chapter 60 Knitted or crocheted fabrics
6001.10 Long pile knitted or crocheted textile fabric
6001.21 Looped pile knitted or crocheted fabric, of cotton6001.22 Looped pile knitted or crocheted fabric, of man-made fibres
6001.29 Looped pile knitted or crocheted fabric, of other textile materials
6001.91 Pile knitted or crocheted fabric, of cotton, nes
6001.92 Pile knitted or crocheted fabric, of man-made fibre, nes
6001.99 Pile knitted or crocheted fabric, of other textile materials, nes
6002.10 Knitted or crocheted textile fabric, width ≤30 cm, ≥5% of elastomeric yarn or rubber
thread, nes
6002.20 Knitted or crocheted textile fabric, width not exceeding 30 cm, nes
6002.30 Knitted or crocheted textile fabric, width > 30 cm, ≥5% of elastomeric yarn or rubber
thread, nes
6002.41 Warp knitted fabric, of wool or fine animal hair, nes
6002.42 Warp knitted fabric, of cotton, nes
6002.43 Warp knitted fabric, of man-made fibres, nes6002.49 Warp knitted fabric, of other materials, nes
6002.91 Knitted or crocheted fabric, of wool or of fine animal hair, nes
6002.92 Knitted or crocheted fabric, of cotton, nes
6002.93 Knitted or crocheted fabric, of manmade fibres, nes
6002.99 Knitted or crocheted fabric, of other materials, nes
Chapter 61 Articles of apparel and clothing accessories, knitted or crocheted
6101.10 Men's or boys' overcoats, anoraks, and sim ar ticles, of wool or fine animal hair, knitted
or crocheted
6101.20 Men's or boys' overcoats, anoraks, and similar articles, of cotton, knitted or crocheted
6101.30 Men's or boys' overcoats, anoraks, and similar articles, of man-made fibres, knitted or
crocheted
6101.90 Men's or boys' overcoats, anoraks, and sim articles, of other textile materials, knitted or
crocheted
6102.10 Women's or girls' overcoats, anoraks and sim art, of wool or fine animal hair, knitted or
crochetedWT/REG147/1
Page 35
6102.20 Women's or girls' overcoats, anoraks and si milar articles, of cotton, knitted or crocheted
6102.30 Women's or girls' overcoats, anoraks and similar articles, of man-made fibres, knitted
or crocheted
6102.90 Women's or girls' overcoats, anoraks and sim art, of other textile materials, knitted or
crocheted
6103.11 Men's or boys' suits, of wool or fine animal hair, knitted or crocheted
6103.12 Men's or boys' suits, of synthetic fibres, knitted or crocheted
6103.19 Men's or boys' suits, of other textile materials, knitted or crocheted
6103.21 Men's or boys' ensembles, of wool or fine animal hair, knitted or crocheted
6103.22 Men's or boys' ensembles, of cotton, knitted or crocheted
6103.23 Men's or boys' ensembles, of synthetic fibres, knitted or crocheted
6103.29 Men's or boys' ensembles, of other textile materials, knitted or crocheted6103.31 Men's or boys' jackets and blazers, of wool or fine animal hair, knitted or crocheted
6103.32 Men's or boys' jackets and blazers, of cotton, knitted or crocheted
6103.33 Men's or boys' jackets and blazers, of synthetic fibres, knitted or crocheted
6103.39 Men's or boys' jackets and blazers, of other textile materials, knitted or crocheted
6103.41 Men's or boys' trousers and shorts, of wool or fine animal hair, knitted or crocheted6103.42 Men's or boys' trousers and shorts, of cotton, knitted or crocheted
6103.43 Men's or boys' trousers and shorts, of synthetic fibres, knitted or crocheted
6103.49 Men's or boys' trousers and shorts, of other textile materials, knitted or crocheted
6104.11 Women's or girls' suits, of wool or fine animal hair, knitted or crocheted
6104.12 Women's or girls' suits, of cotton, knitted or crocheted6104.13 Women's or girls' suits, of synthetic fibres, knitted or crocheted
6104.19 Women's or girls' suits, of other textile materials, knitted or crocheted
6104.21 Women's or girls' ensembles, of wool or fine animal hair, knitted or crocheted
6104.22 Women's or girls' ensembles, of cotton, knitted or crocheted
6104.23 Women's or girls' ensembles, of synthetic fibres, knitted or crocheted6104.29 Women's or girls' ensembles, of other textile materials, knitted or crocheted
6104.31 Women's or girls' jackets, of wool or fine animal hair, knitted or crocheted
6104.32 Women's or girls' jackets, of cotton, knitted or crocheted
6104.33 Women's or girls' jackets, of synthetic fibres, knitted or crocheted
6104.39 Women's or girls' jackets, of other textile materials, knitted or crocheted
6104.41 Women's or girls' dresses, of wool or  fine animal hair, knitted or crocheted
6104.42 Women's or girls' dresses, of cotton, knitted or crocheted6104.43 Women's or girls' dresses, of synthetic fibres, knitted or crocheted
6104.44 Women's or girls' dresses, of artificial fibres, knitted or crocheted
6104.49 Women's or girls' dresses, of other textile materials, knitted or crocheted
6104.51 Women's or girls' skirts, of wool or fine animal hair, knitted or crocheted
6104.52 Women's or girls' skirts, of cotton, knitted or crocheted6104.53 Women's or girls' skirts, of synthetic fibres, knitted or crocheted
6104.59 Women's or girls' skirts, of other textile materials, knitted or crocheted
6104.61 Women's or girls' trousers and shorts, of wo ol or fine animal hair, knitted or crocheted
6104.62 Women's or girls' trousers and shorts, of cotton, knitted or crocheted
6104.63 Women's or girls' trousers and shorts, of synthetic fibres, knitted or crocheted6104.69 Women's or girls' trousers and shorts, of other textile materials, knitted or crocheted
6105.10 Men's or boys' shirts, of cotton, knitted or crocheted
6105.20 Men's or boys' shirts, of man-made fibres, knitted or crocheted
6105.90 Men's or boys' shirts, of other textile materials, knitted or crocheted
6106.10 Women's or girls' blouses and shirts, of cotton, knitted or crocheted6106.20 Women's or girls' blouses and shirts, of man-made fibres, knitted or crocheted
6106.90 Women's or girls' blouses and shirts, of other materials, knitted or crocheted
6107.11 Men's or boys' underpants and briefs, of cotton, knitted or crocheted
6107.12 Men's or boys' underpants and briefs, of man-made fibres, knitted or crochetedWT/REG147/1
Page 36
6107.19 Men's or boys' underpants and briefs, of other textile materials, knitted or crocheted
6107.21 Men's or boys' nightshirts and pajamas, of cotton, knitted or crocheted
6107.22 Men's or boys' nightshirts and pajamas, of man-made fibres, knitted or crocheted
6107.29 Men's or boys' nightshirts and pajamas, of other textile materials, knitted or crocheted
6107.91 Men's or boys' underpants, briefs, robes, and similar articles of cotton, knitted or
crocheted
6107.92 Men's or boys' underpants, briefs, robes, and sim articles of man-made fibres, knitted or
crocheted
6107.99 Men's or boys' underwear, briefs, robes, and sim art of other textile materials, knitted or
crocheted
6108.11 Women's or girls' slips and petticoats, of man-made fibres, knitted or crocheted
6108.19 Women's or girls' slips and petticoats, of other textile materials, knitted or crocheted6108.21 Women's or girls' briefs and panties, of cotton, knitted or crocheted
6108.22 Women's or girls' briefs and panties, of man-made fibres, knitted or crocheted
6108.29 Women's or girls' briefs and panties, of other textile materials, knitted or crocheted
6108.31 Women's or girls' nightdresses and pajamas, of cotton, knitted or crocheted
6108.32 Women's or girls' nightdresses and pajamas, of man-made fibres, knitted or crocheted6108.39 Women's or girls' nightdresses and pajamas, of other textile materials, knitted or
crocheted
6108.91 Women's or girls' robes, dressing gowns, and similar articles of cotton, nes, knitted or
crocheted
6108.92 Women's or girls' robes, dressing gowns, and sim art of man-made fibres, nes, knitted
or crocheted
6108.99 Women's or girls' robes, dressing gowns, a nd sim art of other tex materials, nes, knitted
or crocheted
6109.10 T-shirts, singlets, tank tops, and similar garments, of cotton, knitted or crocheted
6109.90 T-shirts, singlets, tank tops, and similar garments, of other textile materials, knitted or
crocheted
6110.10 Sweaters, pullovers, sweatshirts, and sim articles of wool or fine animal hair, knitted or
crocheted
6110.20 Sweaters, pullovers, sweatshirts, and similar articles of cotton, knitted or crocheted
6110.30 Sweaters, pullovers, sweatshirts, and similar articles of man-made fibres, knitted or
crocheted
6110.90 Sweaters, pullovers, sweatshirts, and sim articles of other textile materials, knitted or
crocheted
6111.10 Babies' garments and clothing accessories of wool or fine animal hair, knitted or
crocheted
6111.20 Babies' garments and clothing accessories of cotton, knitted or crocheted
6111.30 Babies' garments and clothing accessories of synthetic fibres, knitted or crocheted6111.90 Babies' garments and clothing accessories of other textile materials, knitted or
crocheted
6112.11 Track suits, of cotton, knitted or crocheted
6112.12 Track suits, of synthetic fibres, knitted or crocheted
6112.19 Track suits, of other textile materials, knitted or crocheted6112.20 Ski suits, of textile materials, knitted or crocheted
6112.31 Men's or boys' swimwear, of synthetic fibres, knitted or crocheted
6112.39 Men's or boys' swimwear, of other textile materials, knitted or crocheted
6112.41 Women's or girls' swimwear, of synthetic fibres, knitted or crocheted
6112.49 Women's or girls' swimwear, of other textile materials, knitted or crocheted6113.00 Garments made up of impregnated, coated, covered or laminated textile knitted or
crocheted fabric
6114.10 Garments of wool or fine animal hair, knitted or crocheted, nes
6114.20 Garments of cotton, knitted or crocheted, nesWT/REG147/1
Page 37
6114.30 Garments of man-made fibres, knitted or crocheted, nes
6114.90 Garments of other textile materials, knitted or crocheted, nes
6115.11 Panty hose and tights, of synthetic fibre yarn, <67 decitex/single yarn, knitted or
crocheted
6115.12 Panty hose and tights, of synthetic fibre yarn, ≥67 decitex/single yarn, knitted or
crocheted
6115.19 Panty hose and tights, of other textile materials, knitted or crocheted
6115.20 Women full or knee length hosiery, of textile yarn, <67 decitex/single yarn, knitted or
crocheted
6115.91 Hosiery nes, of wool or fine animal hair, knitted or crocheted6115.92 Hosiery nes, of cotton, knitted or crocheted
6115.93 Hosiery nes, of synthetic fibres, knitted or crocheted
6115.99 Hosiery nes, of other textile materials, knitted or crocheted
6116.10 Gloves or mittens, impregnated, coated or covered with plastics or rubber, knitted or
crocheted
6116.91 Gloves or mittens, nes, of wool or fine animal hair, knitted or crocheted
6116.92 Gloves or mittens, nes, of cotton, knitted or crocheted
6116.93 Gloves or mittens, nes, of synthetic fibres, knitted or crocheted
6116.99 Gloves or mittens, nes, of other textile materials, knitted or crocheted
6117.10 Shawls, scarves, veils and the like, of textile materials, knitted or crocheted
6117.20 Ties, bow ties and cravats, of textile materials, knitted or crocheted
6117.80 Clothing accessories nes, of textile materials, knitted or crocheted6117.90 Parts of garments or clothing accessories, of textile materials, knitted or crocheted
Chapter 62 Articles of apparel and clothing accessories, not knitted or crocheted
6201.11 Men's or boys' overcoats, and similar articles  of wool or fine animal hair, not knitted or
crocheted
6201.12 Men's or boys' overcoats, and similar articles of cotton, not knitted or crocheted
6201.13 Men's or boys' overcoats, and similar articles of man-made fibres, not knitted or
crocheted
6201.19 Men's or boys' overcoats, and similar articles of other textile materials, not knitted or
crocheted
6201.91 Men's or boys' anoraks and similar articles, of wool or fine animal hair, not knitted or
crocheted
6201.92 Men's or boys' anoraks and similar arti cles, of cotton, not knitted or crocheted
6201.93 Men's or boys' anoraks and similar articles, of man-made fibres, not knitted or
crocheted
6201.99 Men's or boys' anoraks and similar articles, of other textile materials, not knitted or
crocheted
6202.11 Women's or girls' overcoats and similar articles of wool or fine animal hair not knitted
or crocheted
6202.12 Women's or girls' overcoats and similar articles of cotton, not knitted or crocheted
6202.13 Women's or girls' overcoats and similar articles of man-made fibres, not knitted or
crocheted
6202.19 Women's or girls' overcoats and similar articles of other textile mat, not knitted or
crocheted
6202.91 Women's or girls' anoraks and similar article of wool or fine animal hair, not knitted or
crocheted
6202.92 Women's or girls' anoraks and similar article of cotton, not knitted or crocheted
6202.93 Women's or girls' anoraks and similar article of man-made fibres, not knitted or
crochetedWT/REG147/1
Page 38
6202.99 Women's or girls' anoraks and similar article of other textile materials, not knitted or
crocheted
6203.11 Men's or boys' suits, of wool or fine  animal hair, not knitted or crocheted
6203.12 Men's or boys' suits, of synthetic fibres, not knitted or crocheted
6203.19 Men's or boys' suits, of other textile materials, not knitted or crocheted6203.21 Men's or boys' ensembles, of wool or fine animal hair, not knitted or crocheted
6203.22 Men's or boys' ensembles, of cotton, not knitted or crocheted
6203.23 Men's or boys' ensembles, of synthetic fibres, not knitted or crocheted
6203.29 Men's or boys' ensembles, of other textile materials, not knitted or crocheted
6203.31 Men's or boys' jackets and blazers, of wool or fine animal hair, not knitted or crocheted
6203.32 Men's or boys' jackets and blazers, of cotton, not knitted or crocheted
6203.33 Men's or boys' jackets and blazers, of synthetic fibres, not knitted or crocheted6203.39 Men's or boys' jackets and blazers, of other textile materials, not knitted or crocheted
6203.41 Men's or boys' trousers and shorts, of wool or fine animal hair, not knitted or crocheted
6203.42 Men's or boys' trousers and shorts, of cotton, not knitted or crocheted
6203.43 Men's or boys' trousers and shorts, of synthetic fibres, not knitted or crocheted
6203.49 Men's or boys' trousers and shorts, of other textile materials, not knitted or crocheted6204.11 Women's or girls' suits, of wool or fi ne animal hair, not knitted or crocheted
6204.12 Women's or girls' suits, of cotton, not knitted or crocheted
6204.13 Women's or girls' suits, of synthetic fibres, not knitted or crocheted
6204.19 Women's or girls' suits, of other textile materials, not knitted or crocheted
6204.21 Women's or girls' ensembles, of wool or fine animal hair, not knitted or crocheted6204.22 Women's or girls' ensembles, of cotton, not knitted or crocheted
6204.23 Women's or girls' ensembles, of synthetic fibres, not knitted or crocheted
6204.29 Women's or girls' ensembles, of other textile materials, not knitted or crocheted
6204.31 Women's or girls' jackets, of wool or fine animal hair, not knitted or crocheted
6204.32 Women's or girls' jackets, of cotton, not knitted or crocheted6204.33 Women's or girls' jackets, of synthetic fibres, not knitted or crocheted
6204.39 Women's or girls' jackets, of other textile materials, not knitted or crocheted
6204.41 Women's or girls' dresses, of wool or fine animal hair, not knitted or crocheted
6204.42 Women's or girls' dresses, of cotton, not knitted or crocheted
6204.43 Women's or girls' dresses, of synthetic fibres, not knitted or crocheted
6204.44 Women's or girls' dresses, of artificial fibres, not knitted or crocheted
6204.49 Women's or girls' dresses, of other textile materials, not knitted or crocheted6204.51 Women's or girls' skirts, of wool or fi ne animal hair, not knitted or crocheted
6204.52 Women's or girls' skirts, of cotton, not knitted or crocheted
6204.53 Women's or girls' skirts, of synthetic fibres, not knitted or crocheted
6204.59 Women's or girls' skirts, of other textile materials, not knitted or crocheted
6204.61 Women's or girls' trousers and shorts, of wool or fine animal hair, not knitted or
crocheted
6204.62 Women's or girls' trousers and shor ts, of cotton, not knitted or crocheted
6204.63 Women's or girls' trousers and shorts, of synthetic fibres, not knitted or crocheted
6204.69 Women's or girls' trousers and shorts, of other textile materials, not knitted or crocheted
6205.10 Men's or boys' shirts, of wool or fine  animal hair, not knitted or crocheted
6205.20 Men's or boys' shirts, of cotton, not knitted or crocheted
6205.30 Men's or boys' shirts, of man-made fibres, not knitted or crocheted
6205.90 Men's or boys' shirts, of other textile materials, not knitted or crocheted
6206.10 Women's or girls' blouses and shirts, of s ilk or silk waste, not knitted or crocheted
6206.20 Women's or girls' blouses and shirts, of wool or fine animal hair, not knitted or
crocheted
6206.30 Women's or girls' blouses and shirts, of cotton, not knitted or crocheted
6206.40 Women's or girls' blouses and shirts, of man-made fibres, not knitted or crocheted
6206.90 Women's or girls' blouses and shirts, of other textile materials, not knitted or crochetedWT/REG147/1
Page 39
6207.11 Men's or boys' underpants and briefs, of cotton, not knitted or crocheted
6207.19 Men's or boys' underpants and briefs, of other textile materials, not knitted or crocheted
6207.21 Men's or boys' nightshirts and pajamas, of cotton, not knitted or crocheted
6207.22 Men's or boys' nightshirts and pajamas, of man-made fibres, not knitted or crocheted
6207.29 Men's or boys' nightshirts and pajamas, of other textile materials, not knitted or
crocheted
6207.91 Men's or boys' robes, dressing gowns, and similar articles of cotton, not knitted or
crocheted
6207.92 Men's or boys' robes, dressing gowns, a nd sim art of man-made fibres, not knitted or
crocheted
6207.99 Men's or boys' robes, dressing gowns, and similar articles of other textile materials, not
knit
6208.11 Women's or girls' slips and petticoats, of man-made fibres, not knitted or crocheted
6208.19 Women's or girls' slips and petticoats, of other textile materials, not knitted or crocheted
6208.21 Women's or girls' nightdresses and pajamas, of cotton, not knitted or crocheted
6208.22 Women's or girls' nightdresses and pajamas, of man-made fibres, not knitted or
crocheted
6208.29 Women's or girls' nightdresses and pajamas, of other textile materials, not knitted or
crocheted
6208.91 Women's or girls' panties, robes, and similar articles of cotton, not knitted or crocheted
6208.92 Women's or girls' panties, robes, and similar articles of man-made fibres, not knitted or
crocheted
6208.99 Women's or girls' panties, robes, and sim art of other textile materials, not knitted or
crocheted
6209.10 Babies' garments and clothing accessories of wool or fine animal hair, not knitted or
crocheted
6209.20 Babies' garments and clothing accessories of cotton, not knitted or crocheted6209.30 Babies' garments and clothing accessories of  synthetic fibres, not knitted or crocheted
6209.90 Babies' garments and clothing accessories of other textile materials, not knitted or
crocheted
6210.10 Garments made up of textile felts and of nonwoven textile fabric
6210.20 Men's or boys' overcoats and similar articles of impreg, coated, covered etc, textile
fabric
6210.30 Women's or girls' overcoats and sim art, of impregnated, coated, covered, or laminated
woven fabric
6210.40 Men's or boys' garments nes, made up of impregnated, coated, covered, or laminated
woven fabric
6210.50 Women's or girls' garments nes, of impregnated, coated, covered, or laminated woven
fabric
6211.11 Men's or boys' swimwear, of textile materials not knitted or crocheted
6211.12 Women's or girls' swimwear, of textile materials, not knitted or crocheted
6211.20 Ski suits, of textile materials, not knitted or crocheted
6211.31 Men's or boys' garments nes, of wool or fine animal hair, not knitted or crocheted
6211.32 Men's or boys' garments nes, of cotton, not knitted or crocheted6211.33 Men's or boys' garments nes, of man-made fibres, not knitted or crocheted
6211.39 Men's or boys' garments nes, of other textile materials, not knitted or crocheted
6211.41 Women's or girls' garments nes, of wool or  fine animal hair, not knitted or crocheted
6211.42 Women's or girls' garments nes, of cotton, not knitted or crocheted
6211.43 Women's or girls' garments nes, of ma n-made fibres, not knitted or crocheted
6211.49 Women's or girls' garments nes, of other textile materials, not knitted or crocheted
6212.10 Brassieres and parts thereof, of textile materials, whether or not knitted or crocheted
6212.20 Girdles, panty girdles and parts thereof, of textile materials, whether or not knitted or
crochetedWT/REG147/1
Page 40
6212.30 Corselettes and parts thereof, of textile materials, whether or not knitted or crocheted
6212.90 Corsets, braces and sim articles and parts, of textile materials, whether or not knitted or
crocheted
6213.10 Handkerchiefs, of silk or silk waste, not knitted or crocheted
6213.20 Handkerchiefs, of cotton, not knitted or crocheted6213.90 Handkerchiefs, of other textile materials, not knitted or crocheted
6214.10 Shawls, scarves, veils and the like, of silk or silk waste, not knitted or crocheted
6214.20 Shawls, scarves, veils and the like, of wool or fine animal hair, not knitted or crocheted
6214.30 Shawls, scarves, veils and the like, of synthetic fibres, not knitted or crocheted
6214.40 Shawls, scarves, veils and the like, of artificial fibres, not knitted or crocheted
6214.90 Shawls, scarves, veils and the like, of other textile materials, not knitted or crocheted
6215.10 Ties, bow ties and cravats, of silk or silk waste, not knitted or crocheted6215.20 Ties, bow ties and cravats, of man- made fibres, not knitted or crocheted
6215.90 Ties, bow ties and cravats, of other textile materials, not knitted or crocheted
6216.00 Gloves, mittens and mitts, of textile materials, not knitted or crocheted
6217.10 Clothing accessories of textile materials, not knitted or crocheted, nes
6217.90 Parts of garments or of clothing accessories of textile materials, not knitted or
crocheted, nes
Chapter 63 Other made up textile articles; needlecraft sets; worn clothing and worn textile
articles; rags
6301.10 Electric blankets, of textile materials
6301.20 Blankets (other than electric) and travelling rugs, of wool or fine animal hair
6301.30 Blankets (other than electric) and travelling rugs, of cotton
6301.40 Blankets (other than electric) and travelling rugs, of synthetic fibres
6301.90 Blankets (other than electric) and travelling rugs, of other textile materials6302.10 Bed linen, of textile knitted or crocheted or crocheted materials
6302.21 Bed linen, of cotton, printed, not knitted or crocheted
6302.22 Bed linen, of man-made fibres, printed, not knitted or crocheted
6302.29 Bed linen, of other textile materials, printed, not knitted or crocheted
6302.31 Bed linen, of cotton, nes
6302.32 Bed linen, of man-made fibres, nes
6302.39 Bed linen, of other textile materials, nes6302.40 Table linen, of textile knitted or crocheted materials
6302.51 Table linen, of cotton, not knitted or crocheted
6302.52 Table linen, of flax, not knitted or crocheted
6302.53 Table linen, of man-made fibres, not knitted or crocheted
6302.59 Table linen, of other textile materials, not knitted or crocheted6302.60 Toilet and kitchen linen, of terry toweling or similar terry fabric, of cotton
6302.91 Toilet and kitchen linen, of cotton, nes
6302.92 Toilet and kitchen linen, of flax
6302.93 Toilet and kitchen linen, of man-made fibres
6302.99 Toilet and kitchen linen, of other textile materials6303.11 Curtains, interior blinds and curtain or bed valances, of cotton, knitted or crocheted
6303.12 Curtains, interior blinds and curtain or bed valances, of synthetic fibre, knitted or
crocheted
6303.19 Curtains, interior blinds and curtain or bed valances, other textile materials, knitted or
crocheted
6303.91 Curtains, interior blinds and curtain or bed valances, of cotton, not knitted or crocheted
6303.92 Curtains, interior blinds and curtain or bed valances, of synthetic fibre, not knitted or
crochetedWT/REG147/1
Page 41
6303.99 Curtains, interior blinds and curtain or bed valances, of other tex mat, not knitted or
crocheted
6304.11 Bedspreads of textile materials, nes, knitted or crocheted
6304.19 Bedspreads of textile materials, nes, not knitted or crocheted
6304.91 Furnishing articles nes, of textile materials, knitted or crocheted6304.92 Furnishing articles nes, of cotton, not knitted or crocheted
6304.93 Furnishing articles nes, of synthetic fibres, not knitted or crocheted
6304.99 Furnishing articles nes, of other textile materials, not knitted or crocheted
6305.10 Sacks and bags of jute or of other textile bast fibres
6305.20 Sacks and bags of cotton
6305.32 Sacks and bags of man-made textile materials - flexible intermediate bulk containers
6305.33 Sacks and bags of polyethylene or polypropylene strips6305.39 Sacks and bags of other man-made textile materials
6305.90 Sacks and bags of other textile materials
6306.11 Tarpaulins, awnings and sunblinds, of cotton
6306.12 Tarpaulins, awnings and sunblinds, of synthetic fibres
6306.19 Tarpaulins, awnings and sunblinds, of other textile materials6306.21 Tents, of cotton
6306.22 Tents, of synthetic fibres
6306.29 Tents, of other textile materials
6306.31 Sails, of synthetic fibres
6306.39 Sails, of other textile materials6306.41 Pneumatic mattresses, of cotton
6306.49 Pneumatic mattresses, of other textile materials
6306.91 Camping goods nes, of cotton
6306.99 Camping goods nes, of other textile materials
6307.10 Floor-cloths, dish-cloths, dusters and similar cleaning cloths, of textile materials6307.20 Life jackets and life belts, of textile materials
6307.90 Made up articles, of textile materials, nes, including dress patterns
6308.00 Sets of woven fabric and yarn, for rugs, tapestries, and similar textile articles, for retail
sale
6309.00 Worn clothing and other worn articles
Chapter 64 Footwear, gaiters, and the like; parts of such articles
ex 6405.20 Footwear with soles and uppers of wool felt
ex 6406.10 Footwear uppers of which the external surface is ≥50% textile material
ex 6406.99 Leg warmers and gaiters of textile materials
Chapter 65 Headgear and parts thereof
6501.00 Hat-forms, hat bodies and hoods of felt; plateaux and manchons of felt
6502.00 Hat-shapes, plaited or made by assembling strips of any material
6503.00 Felt hats and other felt headgear
6504.00 Hats and other headgear, plaited or made by assembling strips of any material
6505.90 Hats and other headgear, knitted or made up from lace, or other textile materials
Chapter 66 Umbrellas, sun umbrellas, walking sticks, seatsticks, whips, ridingcrops and parts
thereof
6601.10 Umbrellas and sun umbrellas, garden type
6601.91 Other umbrella types, telescopic shaftWT/REG147/1
Page 42
6601.99 Other umbrellas
Chapter 70 Glass and glassware
ex 7019.19 Yarn of fibre glass
7019.40 Woven fabric of rovings
7019.51 Other woven fabric, of a width ≤30cm
7019.52 Other woven fabric, of a width >30cm, pl ain weave, weighing <250g/m2, of filaments
measuring per single yarn ≤136 tex
7019.59 Other woven fabric, other
Chapter 88 Aircraft, spacecraft, and parts thereof
8804.00 Parachutes; their parts and accessories
Chapter 91 Clocks and watches and parts thereof
9113.90 Watch straps, bands and bracelets of textile materials
Chapter 94 Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed
furnishings
ex 9404.90 Pillow and cushions of cotton; quilts; eiderdowns; comforters and sim articles of textile
materials
Chapter 95 Toys, games and sports requisites; parts and accessories thereof
9502.91 Garments for dolls
Chapter 96 Miscellaneous manufactured articles
ex 9612.10 Woven ribbons, of man-made fibres, other than those <30 mm wide and permanently in
cartridges
APPENDIX III.1.5.1: FLEXIBILITY PROVISIONS
Adjustments to annual specific limits (SLs), may be made as follows:
(a) the exporting Party may increase the SL for a calendar year by no more than
six per cent ("swing").
(b) in addition to any increase of its SL under subparagraph (a), the exporting Party may
increase its unadjusted SL for that year by no more than 11 per cent by allocating to
such SL for that calendar year (the "receiving year") an unused portion ("shortfall") of
the corresponding SL for the previous calendar year ("carryover") or a portion of the
corresponding SL for the following calend ar year ("carryforward"), as follows:
(i) subject to subparagraph (iii), the exporting Party may utilise carryover, as
available, up to 11 per cent of the unadjusted SL for the receiving year;WT/REG147/1
Page 43
(ii) the exporting Party may utilise carryforward charged against the
corresponding SL for the following calendar year, up to six per cent of the
unadjusted SL for the receiving year;
(iii) the combination of the exporting Party's carryover and carryforward shall not
exceed 11 per cent of the unadjusted SL in the receiving year; and
(iv) carryover may be utilised only following confirmation by the importing Party
that sufficient shortfall exists. If the importing Party does not consider that
sufficient shortfall exists, it shall promptly provide data to the exporting Party
to support that view. Where substantial statistical differences exist between
the import and export data on which the shortfall is computed, the Parties
shall seek to resolve these differences promptly.
APPENDIX III.1.6.1: SPECIAL PROVISIONS
Preferential Tariff Treatment for Non-Originating Goods of the Other Party
Apparel1. (a) Each Party shall apply the rate of duty ap plicable to originating goods set out in its
Schedule to Annex III.3.1 (Tariff Elimination), up to the annual quantities specified in
Schedule 6.B.1, in SME, to apparel goods provided for in Chapters 61 and 62 that are
both cut (or knit to shape) and sewn or otherwise assembled in the territory of a Partyfrom fabric or yarn produced or obtained outside the free trade area, and that meet
other applicable conditions for preferred tariff treatment under this Agreement. The
SME shall be determined in accordance with the conversion factors set out in
Appendix III.1.6.2.
(b) The annual tariff preference levels (TPLs) set out in Schedule 6.B.1 shall be increased
annually by two per cent for three consecutive years beginning one year after the
entry into force of this Agreement.
Fabric and Made-Up Goods
2. (a) Each Party shall apply the rate of duty ap plicable to originating goods set out in its
6.B.2, in SME, to cotton or man-made fibre fabric and cotton or man-made fibre
made-up textile goods provided for in Chapters 52 through 55 (excluding goodscontaining 36% or more by weight of wool or fine animal hair), 58 through 60 and 63
that are woven or knit in a Party from yarn produced or obtained outside the free trade
area, or knit in a Party from yarn spun in a Party from fibre produced or obtained
outside the free trade area, and to goods of subheading 9404.90 that are finished and
cut and sewn or otherwise assembled from fabrics of subheadings 5208.11 through5208.29, 5209.11 through 5209.29, 5210.11 through 5210.29, 5211.11 through
5211.29, 5212.11, 5212.12, 5212.21, 5212.22, 5407.41, 5407.51, 5407.71, 5407.81,
5407.91, 5408.21, 5408.31, 5512.11, 5512.21, 5512.91, 5513.11 through 5513.19,
5514.11 through 5514.19, 5516.11, 5516.21, 5516.31, 5516.41 or 5516.91 produced
or obtained outside the free trade area, and that meet other applicable conditions forpreferred tariff treatment under this Agreement. The SME shall be determined in
accordance with the conversion factors set out in Appendix III.3.1.6.2.WT/REG147/1
Page 44
(b) Each Party shall apply the rate of duty app licable to originating goods set out in its
Schedule to Annex III.3.1 (Tariff Elimination), up to the annual quantities specified
in Schedule 6.B.2, in SME, to wool fabric and wool made-up textile goods provided
for in Chapters 51 through 55 (containing 36% or more by weight of wool or fine
animal hair), 58, 60, and 63 that are woven or knit in a Party from yarn produced orobtained outside the free trade area, or knit in a Party from yarn spun in a Party from
fibre produced or obtained outside the free trade area, and that meet other applicable
conditions for preferred tariff treatment under this Agreement. The SME shall be
determined in accordance with the conversion factors set out in Appendix III.1.6.2.
Spun Yarn
3. Each Party shall apply the rate of duty applicab le to originating goods set out in its Schedule
to Annex III.3.1 (Tariff Elimination), up to the annual quantities specified in Schedule 6.B.3, in
kilograms (kg), to cotton or man-made fibre yarns provided for in headings 52.05 through 52.07 or
55.09 through 55.11 that are spun in a Party from fibre of headings 52.01 through 52.03 or 55.01
through 55.07, produced or obtained outside the free trade area and that meet other applicable
conditions for preferred tariff treatment under this Agreement.
4. Textile or apparel goods that enter the territory of a Party under paragraph 1, 2 or 3 shall not
be considered to be originating goods.
Certification and Verification Requirements
5. In order that goods may be traded under the TPL regime, prior to the entry into force of this
Agreement, the Parties shall:
(a) Agree on and establish the documentation or certification requirements for the
importation of the goods for which the benefit of TPL will be claimed; and
(b) Notify each other of the method of verification, by the administration of the Party
from which the goods are exported, of the eligibility of the goods for TPL status.
Review and Consultations
6. (a) Trade in the goods referred to in paragraphs 1, 2 and 3 shall be monitored by the
Parties on request of any Party wishing to adjust any annual TPL, based on the ability
to obtain supplies of particular fibres, yarns and fabrics, as appropriate, that can be
used to produce originating goods. The Parties shall consult with a view to adjusting
such level. Any adjustment in the TPL requires the mutual consent of the Parties.
(b) The Parties shall review the rules of origin applicable to textiles and apparel goods,
within four years of the date of entry into force of this Agreement to take into account
the effect of increasing global competition on textile and apparel goods and the
implications of any integration of these goods into the WTO. In this review, the
Parties will take into account changed circumstances such as technological advances,changes in market conditions and developments with respect to international trade in
textiles and apparel.WT/REG147/1
Page 45
SCHEDULE 6.B.1
Preferential Tariff Treatment for Non-Originating Apparel
Imports into Canada: from Costa Rica
1,300,000 SME
Imports into Costa Rica: from Canada
1,300,000 SME
SCHEDULE 6.B.2
Preferential Tariff Treatment for Non-Originating Fabrics and Made-Up Goods
Imports into Canada
(a) Cotton or man made fibre
      fabrics and made up goods
(b) Wool fabrics and made up
      goodsfrom Costa Rica
1,000,000 SME
250,000 SME
Imports into Costa Rica
(a) Cotton or man made fibre
      fabrics and made up goods
(b) Wool fabrics and made up
      goodsfrom Canada
1,000,000 SME
250,000 SME
SCHEDULE 6.B.3
Preferential Tariff Treatment for Non-Originating Cotton or Man-made Fibre Spun Yarn
Imports into Canada from Costa Rica
150,000 kg
Imports into Costa Rica from Canada
150,000 kgWT/REG147/1
Page 46
APPENDIX III.1.6.2: CONVERSION FACTORS4
1. This Schedule applies to restrictions and consultation levels applied pursuant to Sections 4
and 5 and Appendix III.1.6.1.
2. Unless otherwise provided in this Annex, or as may be mutually agreed between the Parties
with respect to trade between them, the rates of conversion into SME set out in paragraphs 3 through
6 shall apply.
3. The following conversion factors shall apply to the goods covered by the following U.S.
categories:
U.S. Conversion Des cription Primary
Category Factor    Unit of
Measure
200 6.60 YARN FOR RETAIL SALE, SEWING THREAD KG
201 6.50 SPECIALTY YARNS KG218 1.00 FABRIC OF YARNS OF DIFFERENT COLOURS SM219 1.00 DUCK FABRIC SM220 1.00 FABRIC OF SPECIAL WEAVE SM
222 6.00 KNIT FABRIC KG
223 14.00 NON-WOVEN FABRIC KG224 1.00 PILE & TUFTED FABRIC SM225 1.00 BLUE DENIM FABRIC SM226 1.00 CHEESECLOTH, BATISTE, LAWN & VOILE SM227 1.00 OXFORD CLOTH SM
229 13.60 SPECIAL PURPOSE FABRIC KG
237 19.20 PLAYSUITS, SUNSUITS, ETC DZ239 6.30 BABIES' GARMENTS & CLOTHING ACCESS. KG300 8.50 CARDED COTTON YARN KG301 8.50 COMBED COTTON YARN KG
313 1.00 COTTON SHEETING FABRIC SM
314 1.00 COTTON POPLIN & BROADCLOTH FABRIC SM315 1.00 COTTON PRINTCLOTH FABRIC SM317 1.00 COTTON TWILL FABRIC SM326 1.00 COTTON SATEEN FABRIC SM330 1.40 COTTON HANDKERCHIEFS DZ
331 2.90 COTTON GLOVES AND MITTENS DPR
332 3.80 COTTON HOSIERY DPR333 30.30 M&B SUIT-TYPE COATS, COTTON DZ334 34.50 OTHER M&B COATS, COTTON DZ335 34.50 W&G COTTON COATS DZ336 37.90 COTTON DRESSES DZ
338 6.00 M&B COTTON KNIT SHIRTS DZ
339 6.00 W&G COTTON KNIT SHIRTS/BLOUSES DZ340 20.10 M&B COTTON SHIRTS, NOT KNIT DZ341 12.10 W&G COTTON SHIRTS/BLOUSES, NOT KNIT DZ342 14.90 COTTON SKIRTS DZ
345 30.80 COTTON SWEATERS DZ
347 14.90 M&B COTTON TROUSERS/BREECHES/SHORTS DZ348 14.90 W&G COTTON TROUSERS/BREECHES/SHORTS DZ
                                                     
4 For purposes of this Appendix only, references to U.S Harmonized System Statistical Provisions
are based on the 1992 Harmonized System.WT/REG147/1
Page 47
349 4.00 BRASSIERES, OTHER BODY SUPPORT GARMENTS DZ
350 42.60 COTTON DRESSING GOWNS, ROBES ETC. DZ351 43.50 COTTON NIGHTWEAR/PAJAMAS DZ
352 9.20 COTTON UNDERWEAR DZ
353 34.50 M&B COTTON DOWN-FILLED COATS DZ354 34.50 W&G COTTON DOWN-FILLED COATS DZ359 8.50 OTHER COTTON APPAREL KG360 0.90 COTTON PILLOWCASES NO
361 5.20 COTTON SHEETS NO
362 5.80 OTHER COTTON BEDDING NO363 0.40 COTTON TERRY & OTHER PILE TOWELS NO369 8.50 OTHER COTTON MANUFACTURES KG400 3.70 WOOL YARN KG410 1.00 WOOL WOVEN FABRIC SM
414 2.80 OTHER WOOL FABRIC KG
431 1.80 WOOL GLOVES/MITTENS DPR432 2.30 WOOL HOSIERY DPR433 30.10 M&B WOOL SUIT-TYPE COATS DZ434 45.10 OTHER M&B WOOL COATS DZ435 45.10 W&G WOOL COATS DZ
436 41.10 WOOL DRESSES DZ
438 12.50 WOOL KNIT SHIRTS/BLOUSES DZ439 6.30 BABIES' WOOL GARM/CLOTHING ACCESS. KG440 20.10 WOOL SHIRTS/BLOUSES, NOT-KNIT DZ442 15.00 WOOL SKIRTS DZ443 3.76 M&B WOOL SUITS NO
444 3.76 W&G WOOL SUITS NO
445 12.40 M&B WOOL SWEATERS DZ446 12.40 W&G WOOL SWEATERS DZ447 15.00 M&B WOOL TROUSERS/BREECHES/SHORTS DZ448 15.00 W&G WOOL TROUSERS/BREECHES/SHORTS DZ
459 3.70 OTHER WOOL APPAREL KG
464 2.40 WOOL BLANKETS KG465 1.00 WOOL FLOOR COVERINGS SM469 3.70 OTHER WOOL MANUFACTURES KG600 6.50 TEXTURED FILAMENT YARN KG
603 6.30 YARN 
≥ 85% ARTIFICIAL STAPLE FIBRE KG
604 7.60 YARN ≥ 85% SYNTHETIC STAPLE FIBRE KG
606 20.10 NON-TEXTURED FILAMENT YARN KG
607 6.50 OTHER STAPLE FIBRE YARN KG
611 1.00 WOVEN FABRIC ≥ 85% ARTIFICIAL STAPLE SM
613 1.00 MMF SHEETING FABRIC SM
614 1.00 MMF POPLIN & BROADCLOTH FABRIC SM615 1.00 MMF PRINTCLOTH FABRIC SM617 1.00 MMF TWILL AND SATEEN FABRIC SM
618 1.00 WOVEN ARTIFICIAL FILAMENT FABRIC SM
619 1.00 POLYESTER FILAMENT FABRIC SM620 1.00 OTHER SYNTHETIC FILAMENT FABRIC SM621 14.40 IMPRESSION FABRIC KG622 1.00 GLASS FIBRE FABRIC SM624 1.00 WOVEN MMF FABRIC, 15% TO 36% WOOL SM
625 1.00 MMF STAPLE/FILAMENT POPLIN & BROADCLOTH FABRIC SM
626 1.00 MMF STAPLE/FILAMENT PRINTCLOTH FABRIC SM627 1.00 MMF STAPLE/FILAMENT SHEETING FABRIC SM628 1.00 MMF STAPLE/FILAMENT TWILL/SATEEN FABRIC SM629 1.00 OTHER MMF STAPLE/FILAMENT FABRIC SM630 1.40 MMF HANDKERCHIEFS DZWT/REG147/1
Page 48
631 2.90 MMF GLOVES AND MITTENS DPR
632 3.80 MMF HOSIERY DPR633 30.30 M&B MMF SUIT-TYPE COATS DZ
634 34.50 OTHER M&B MMF COATS DZ
635 34.50 W&G MMF COATS DZ636 37.90 MMF DRESSES DZ638 15.00 M&B MMF KNIT SHIRTS DZ639 12.50 W&G MMF KNIT SHIRTS & BLOUSES DZ
640 20.10 M&B NOT-KNIT MMF SHIRTS DZ
641 12.10 W&G NOT-KNIT MMF SHIRTS & BLOUSES DZ642 14.90 MMF SKIRTS DZ643 3.76 M&B MMF SUITS NO644 3.76 W&G MMF SUITS NO645 30.80 M&B MMF SWEATERS DZ
646 30.80 W&G MMF SWEATERS DZ
647 14.90 M&B MMF TROUSERS/BREECHES/SHORTS DZ648 14.90 W&G MMF TROUSERS/BREECHES/SHORTS DZ649 4.00 MMF BRAS & OTHER BODY SUPPORT GARMENTS DZ650 42.60 MMF ROBES, DRESSING GOWNS, ETC. DZ651 43.50 MMF NIGHTWEAR & PAJAMAS DZ
652 13.40 MMF UNDERWEAR DZ
653 34.50 M&B MMF DOWN-FILLED COATS DZ654 34.50 W&G MMF DOWN-FILLED COATS DZ659 14.40 OTHER MMF APPAREL KG665 1.00 MMF FLOOR COVERINGS SM666 14.40 OTHER MMF FURNISHINGS KG
669 14.40 OTHER MMF MANUFACTURES KG
670 3.70 MMF FLAT GOODS, HANDBAGS, LUGGAGE KG800 8.50 YARN, SILK BLENDS/VEGETABLE FIBRE KG810 1.00 WOVEN FABRIC, SILK BLENDS/VEGETABLE FIBRE SM831 2.90 GLOVES & MITTENS, SILK BLENDS/VEGETABLE FIBRE DPR
832 3.80 HOSIERY, SILK BLENDS/VEGETABLE FIBRE DPR
833 30.30 M&B SUIT-TYPE COATS, SILK BLENDS/VEGETABLE FIBRE DZ834 34.50 OTHER M&B COATS, SILK BLENDS/VEGETABLE FIBRE DZ835 34.50 W&G COATS, SILK BLENDS/VEGETABLE FIBRE DZ836 37.90 DRESSES, SILK BLENDS/VEGETABLE FIBRE DZ838 11.70 KNIT SHIRTS & BLOUSES, SILK BLENDS/VEGETABLE FIBRE DZ
839 6.30 BABIES' GARM & CLOTHING ACCESSORIES, SILK/VEG FIBRE KG
840 16.70 NOT-KNIT SHIRTS & BLOUSES, SILK BLENDS/ VEGETABLE FIBRE DZ842 14.90 SKIRTS, SILK BLENDS/VEGETABLE FIBRES DZ843 3.76 M&B SUITS, SILK BLENDS/VEGETABLE FIBRE NO844 3.76 W&G SUITS, SILK BLENDS/VEGETABLE FIBRE NO845 30.80 SWEATERS, NON-COTTON VEGETABLE FIBRES DZ
846 30.80 SWEATERS, SILK BLENDS DZ
847 14.90 TROUSERS/BREECHES/SHORTS, SILK BLENDS/ VEGETABLE FIBRE DZ850 42.60 ROBES, DRESSING GOWNS, ETC, SILK BLENDS/ VEGETABLE FIBRE DZ851 43.50 NIGHTWEAR & PYJAMAS, SILK BLENDS/VEGETABLE FIBRE DZ852 11.30 UNDERWEAR, SILK BLENDS/VEGETABLE FIBRE DZ
858 6.60 NECKWEAR, SILK BLENDS/VEGETABLE FIBRE KG
859 12.50 OTHER SILK BLEND/VEGETABLE FIBRE APPAREL KG863 0.40 TOWELS, SILK BLENDS/VEGETABLE FIBRES NO870 3.70 LUGGAGE, SILK BLENDS/VEGETABLE FIBRES KG871 3.70 HANDBAGS & FLATGOODS, SILK BLENDS/VEGETABLE FIBRE KG899 11.10 OTHER SILK BLENDS/VEGETABLE FIBRE MANUFACTURES KG
4. The following conversion factors shall apply to the following goods not covered by a U.S.
category:WT/REG147/1
Page 49
U.S.
HarmonizedSystem Primary
Statistical Conversion Unit of
Provision Factor Measure Description
5208.31.2000 1.00 SM WOVEN FABRIC, 85%> COTTON, <100G/M2 CERTIFIED
HAND-LOOM FABRIC, DYED
5208.32.1000 1.00 SM WOVEN FABRIC, 85%> COTTON, 100-200G/M2 CERTIFIED
HAND-LOOM FABRIC, DYED
5208.41.2000 1.00 SM WOVEN FABRIC, 
≥85% COTTON 100G/M2 CERTIFIED HAND-
LOOM, YARNS OF DIFFERENT COLOURS
5208.42.1000 1.00 SM WOVEN FABRIC, ≥85% COTTON 100-200G/M2 CERTIFIED
HAND-LOOM, YARNS OF DIFFERENT COLOURS
5208.51.2000 1.00 SM WOVEN FABRIC, 85%> COTTON 100G/M2 PLAIN WEAVE,
CERTIFIED HAND-LOOM, PRINTED
5208.52.1000 1.00 SM WOVEN FABRIC, ≥85% COTTON 100-200G/M2 PLAIN WEAVE,
CERTIFIED HAND-LOOM, PRINTED
5209.31.3000 1.00 SM WOVEN FABRIC, 85%> COTTON >200G/M2 PLAIN WEAVE,
CERTIFIED HAND-LOOM, DYED
5209.41.3000 1.00 SM WOVEN FABRIC, 85%> COTTON >200G/M2, PLAIN WEAVE,
YARNS OF DIFFERENT COLOURS
5209.51.3000 1.00 SM WOVEN FABRIC, >85% COTTON >200G/M2, PLAIN WEAVE,
CERTIFIED HAND-LOOM, PRINTED
5307.10.0000 8.50 KG YARN, JUTE OR OTHER TEXTILE BAST FIBRE (EXCLUDING
FLAX/HEMP/RAMIE), SINGLE
5307.20.0000 8.50 KG YARN, JUTE OR OTHER TEXTILE BAST FIBRE (EX.
FLAX/HEMP/RAMIE), MULTIPLE/CABLE
5308.10.0000 8.50 KG YARN, COIR
5308.30.0000 8.50 KG YARN, PAPER5310.10.0020 1.00 SM WOVEN FABRIC, JUTE OR OTHER TEXTILE BAST FIBRE (EX
FLAX/HEMP/RAMIE), 
≤130CM WIDE, UNBLEACHED
5310.10.0040 1.00 SM WOVEN FABRIC, JUTE OR OTHER TEXTILE BAST FIBRE (EX
FLAX/HEMP/RAMIE) >130 TO ≤ 250 CM WIDE, UNBLEACHED
5310.10.0060 1.00 SM WOVEN FABRIC, JUTE OR OTHER TEXTILE BAST FIBRE (EX
FLAX/HEMP/RAMIE), >250 CM WIDE, UNBLEACHED
5310.90.0000 1.00 SM WOVEN FABRIC, JUTE OR OTHER TEXTILE BAST FIBRE
(EXCLUDING FLAX/HEMP/RAMIE), NES
5311.00.6000 1.00 SM WOVEN FABRIC OF PAPER YARN
5402.10.3020 20.10 KG NYLON HIGH TENACITY YARN, <5 TURNS PER METRE, NOT
FOR RETAIL SALE
5402.20.3020 20.10 KG POLYESTER HIGH TENACITY YARN, <5 TURNS PER METRE,
NOT FOR RETAIL SALE
5402.41.0010 20.10 KG NYLON MULTIFILAMENT YARN, PARTIALLY ORIENTED,
UNTWIST/TWIST <5 TURNS/METRE, NOT FOR RETAIL SALE
5402.41.0020 20.10 KG NYLON MONO/MULTIFILAMENT YARN, UNTWIST/TWIST <5
TURNS/METRE, NOT FOR RETAIL SALE, NES
5402.41.0030 20.10 KG NYLON MONO/MULTIFILAMENT YARN, UNTWIST/TWIST <5
TURNS/METRE, NOT FOR RETAIL SALE
5402.42.0000 20.10 KG POLYESTER YARN, PARTIALLY ORIENTED,
UNTWIST/TWIST ≤ 50 TURNS/METRE, NOT FOR RETAIL
SALE
5402.43.0020 20.10 KG POLYESTER YARN, MONOFILAMENT, UNTWIST/TWIST ≤ 5
TURNS/METRE, NOT FOR RETAIL SALE
5402.49.0010 20.10 KG POLYETHYLENE/POLYPROPYLENE FILAMENT YARN,
UNTWIST/TWIST <5 TURNS/METRE, NOT FOR RETAIL SALEWT/REG147/1
Page 50
5402.49.0050 20.10 KG SYNTHETIC FILAMENT YARN, UNTWIST/TWIST <5
TURNS/METRE, NOT FOR RETAIL SALE, NES
5403.10.3020 20.10 KG VISCOSE RAYON HIGH TENACITY FILAMENT YARN,
UNTWIST/TWIST <5 TURNS/METRE, NOT FOR RETAIL SALE
5403.31.0020 20.10 KG VISCOSE RAYON FILAMENT YARN, SINGLE,
UNTWIST/TWIST <5 TURNS/METRE, NOT FOR RETAIL SALE
5403.33.0020 20.10 KG CELLULOSE ACETATE FILAMENT YARN, SINGLE,
UNTWIST/TWIST <5 TURNS/METRE, NOT FOR RETAIL SALE
5403.39.0020 20.10 KG ARTIFICIAL FILAMENT YARN, UNTWIST/TWIST <5
TURNS/METRE, NOT FOR RETAIL SALE, NES
5404.10.1000 20.10 KG SYNTHETIC MONOFILAMENT RACKET STRINGS, 67
DECITEX, CROSS-SECT. DIMENSION >1MM
5404.10.2020 20.10 KG NYLON MONOFILAMENT, ≥ 67 DECITEX, CROSS-
SECTIONAL DIMENSION >1MM,
5404.10.2040 20.10 KG POLYESTER MONOFILAMENT, >67 DECITEX,
CROSSSECTIONAL DIMENSION >1MM
5404.10.2090 20.10 KG SYNTHETIC MONOFILAMENT ≥67 DECITEX,
CROSSSECTIONAL DIME NSION >1MM, NES
5404.90.0000 20.10 KG SYNTHETIC STRIP WIDTH ≤ 5MM
5405.00.3000 20.10 KG ARTIFICIAL MONOFILAMENT, ≥67 DECITEX,
CROSSSECTIONAL DIMENSION ≤1MM
5405.00.6000 20.10 KG ARTIFICIAL STRIP AND THE LIKE, WIDTH ≤ 5MM
5407.30.1000 1.00 SM WOVEN SYNTHETIC FILAMENT FABRIC WITH YARN AT
ACUTE/RIGHT ANGLES, >60% PLASTIC
5501.10.0000 7.60 KG NYLON/OTHER POLYAMIDE FILAMENT TOW
5501.20.0000 7.60 KG POLYESTER FILAMENT TOW
5501.30.0000 7.60 KG ACRYLIC OR MODACRYLIC FILAMENT TOW5501.90.0000 7.60 KG SYNTHETIC FILAMENT TOW, NES5502.00.0000 6.30 KG ARTIFICIAL FILAMENT TOW5503.10.0000 7.60 KG NYLON/OTHER POLYAMIDE STAPLE FIBRES NOT
CARDED/COMBED OR OTHERWISE PROCESSED
5503.20.0000 7.60 KG POLYESTER STAPLE FIBRES NOT CARDED/COMBED, OR
OTHERWISE PROCESSED
5503.30.0000 7.60 KG ACRYLIC/MODOACRYLIC STAPLE FIBRES, NOT
CARDED/COMBED OR OTHERWISE PROCESSED
5503.40.0000 7.60 KG POLYPROPYLENE STAPLE FIBRES NOT CARDED/COMBED
OR OTHERWISE PROCESSED
5503.90.0000 7.60 KG SYNTHETIC STAPLE FIBRE NOT CARDED/COMBED, OR
OTHERWISE PROCESSED, NES
5504.10.0000 6.30 KG VISCOSE RAYON STAPLE FIBRES NOT CARDED/COMBED
OR OTHERWISE PROCESSED
5504.90.0000 6.30 KG ARTIFICIAL STAPLE FIBRES NOT CARDED/COMBED OR
OTHERWISE PROCESSED, NES
5505.10.0020 7.60 KG WASTE, NYLON AND OTHER POLYAMIDES5505.10.0040 7.60 KG WASTE, POLYESTER5505.10.0060 7.60 KG WASTE, MMF SYNTHETIC FIBRES, NES5505.20.0000 6.30 KG WASTE, MMF ARTIFICIAL FIBRES5506.10.0000 7.60 KG NYLON/OTHER POLYAMIDES FIBRES, CARDED/COMBED
OR OTHERWISE PROCESSED
5506.20.0000 7.60 KG POLYESTER STAPLE FIBRE, CARDED/COMBED, OR
OTHERWISE PROCESSED
5506.30.0000 7.60 KG ACRYLIC/MODOACRYLIC STAPLE FIBRE,
CARDED/COMBED OR OTHERWISE PROCESSED
5506.90.0000 7.60 KG SYNTHETIC STAPLE FIBRE CARDED/COMBED OR
OTHERWISE PROCESSED, NES
5507.00.0000 6.30 KG ARTIFICIAL STAPLE FIBRES, CARDED/COMBED, OR
OTHERWISE PROCESSEDWT/REG147/1
Page 51
5801.90.2010 1.00 SM WOVEN PILE FABRIC, >85% SILK OR SILK WASTE
5802.20.0010 1.00 SM TERRY TOWELLING FABRIC, >85% SILK OR SILK WASTE5802.30.0010 1.00 SM TUFTED TEXTILE FABRIC, >85% SILK OR SILK WASTE
5803.90.4010 1.00 SM GAUZE, >85% SILK OR SILK WASTE
5804.10.0010 11.10 KG TULLES & OTHER NETTING FABRIC, KNIT OR CROCHETED,
>85% SILK OR SILK WASTE
5804.29.0010 11.10 KG LACE IN THE PIECE/STRIP/MOTIF, >85% SILK OR SILK
WASTE
5804.30.0010 11.10 KG HAND-MADE LACE IN PIECE/STRIP/MOTIF, >85% SILK OR
SILK WASTE
5805.00.1000 1.00 SM HAND-WOVEN TAPESTRIES FOR WALLHANGINGS,
VALUED AT >$215\SM
5805.00.2000 1.00 SM HAND-WOVEN TAPESTRIES, NES, WOOL, CERTIFIED HAND-
LOOMED
5805.00.4090 1.00 SM HAND-WOVEN TAPESTRIES, NES
5806.10.3010 11.10 KG NARROW WOVEN PILE & CHENILLE FABRIC, >85% SILK OR
SILK WASTE
5806.39.3010 11.10 KG NARROW WOVEN FABRIC, NOT PILE, >85% SILK OR SILK
WASTE
5806.40.0000 13.60 KG NARROW FABRIC, WARP WITHOUT WEFT WITH AN
ADHESIVE (BOLDUCS)
5807.10.1090 11.10 KG WOVEN LABELS, TEXTILE MATERIALS, NOT
EMBROIDERED, NOT COTTON OR MMF
5807.10.2010 8.50 KG WOVEN BADGES AND SIMILAR ARTICLES, COTTON, NOT
EMBROIDERED
5807.10.2020 14.40 KG WOVEN BADGES/SIMILAR ARTICLES, MMF, NOT
EMBROIDERED
5807.10.2090 11.10 KG WOVEN BADGES/SIMILAR ARTICLES, TEXTILE
MATERIALS, NOT EMBROIDERED, NOT COTTON/MMF
5807.90.1090 11.10 KG NOT-WOVEN LABELS OF TEXTILE MATERIALS, NOT
EMBROIDERED, NOT COTTON/MMF
5807.90.2010 8.50 KG NOT-WOVEN BADGES/SIMILAR ARTICLES, COTTON, NOT
EMBROIDERED
5807.90.2020 14.40 KG NOT-WOVEN BADGES/SIMILAR ARTICLES, MMF, NOT
EMBROIDERED
5807.90.2090 11.10 KG NOT-WOVEN BADGES/SIMILAR ARTICLES, TEX
MATERIALS, NOT EMBROIDERED, NOT COTTON/MMF
5808.10.2090 11.10 KG BRAIDS IN PIECE FOR HEADWEAR, OTHER TEXTILE
MATERIALS, NES, NOT KNIT OR EMBROIDERED
5808.10.3090 11.10 KG BRAID IN PIECE, NES, NES5808.90.0090 11.10 KG ORNAMENTAL TRIMMING IN PIECE, TEXTILE MATERIALS,
NOT KNIT OR EMBROIDERED, NOT COTTON/MMF
5810.92.0040 14.40 KG EMBROIDERED BADGES/EMBLEMS/MOTIFS WITH VISIBLE
GROUND, MMF
5810.99.0090 11.10 KG EMBROIDERY PIECES/STRIPS/MOTIFS WITH VISIBLE
GROUND, TEXTILE MATERIALS, NES
5811.00.4000 1.00 SM QUILTED PIECES, 1
≥ LAYER TEXTILE MATERIALS, TEXTILE
MATERIALS, NES
6001.99.0010 1.00 SM KNIT OR CROCHETED PILE FABRIC ≥85% SILK OR SILK
WASTE
6002.99.0010 11.10 KG KNIT OR CROCHETED FABRIC, NES ≥85% SILK OR SILK
WASTE
6301.90.0020 11.10 NO BLANKET/TRAVELLING RUGS, >85% SILK OR SILK WASTE6302.29.0010 11.10 NO BED LINEN, PRINTED >85% SILK OR SILK WASTE6302.39.0020 11.10 NO BED LINEN, NES, >85% SILK OR SILK WASTE6302.99.1000 11.10 NO LINEN, NES, >85% SILK OR SILK WASTEWT/REG147/1
Page 52
6303.99.0030 11.10 NO CURTAINS, INTERIOR BLINDS, NOT KNIT OR CROCHETED,
>85% SILK OR SILK WASTE
6304.19.3030 11.10 NO BEDSPREADS, NOT KNIT OR CROCHETED, >85% SILK OR
SILK WASTE
6304.91.0060 11.10 NO FURNISHING ARTICLES, NES, KNIT OR CROCHETED >85%
SILK OR SILK WASTE
6304.99.1000 1.00 SM WALL HANGINGS, WOOL OR FINE ANIMAL HAIR,
CERTIFIED HAND-LOOMED/FOLKLORE, NOT KNIT
6304.99.2500 11.10 KG WALL HANGINGS, JUTE, NOT KNIT
6304.99.4000 3.70 KG PILLOW COVERS, WOOL OR FINE ANIMAL HAIR,
CERTIFIED HAND-LOOMED/FOLKLORE
6304.99.6030 11.10 KG OTHER FURNISHING ARTICLES, NOT KNIT, NES >85% SILK
OR SILK WASTE
6305.10.0000 11.10 KG SACKS & BAGS, JUTE/BAST FIBRES
6306.21.0000 8.50 KG TENTS OF COTTON
6306.22.1000 14.40 NO BACKPACK TENTS, SYNTHETIC FIBRES6306.22.9010 14.40 KG SCREEN HOUSES, SYNTHETIC FIBRES6306.29.0000 14.40 KG TENTS, TEXTILE MATERIALS NES6306.31.0000 14.40 KG SAILS, SYNTHETIC FIBRES6306.39.0000 8.50 KG SAILS, TEXTILE MATERIALS NES
6306.41.0000  8.50 KG PNEUMATIC MATTRESSES, COTTON
6306.49.0000 14.40 KG PNEUMATIC MATTRESSES, TEXTILE MATERIALS NES6306.91.0000 8.50 KG CAMPING GOODS NES, COTTON6306.99.0000 14.40 KG CAMPING GOODS, TEXTILE MATERIALS NES6307.10.2030  8.50 KG CLEANING CLOTHS NES6307.20.0000 11.40 KG LIFEJACKETS AND LIFEBELTS
6307.90.6010 8.50 KG PERINEAL TOWELS, FABRIC WITH PAPER BASE
6307.90.6090 8.50 KG OTHER SURGICAL DRAPES, FABRIC WITH PAPER BASE6307.90.7010 14.40 KG SURGICAL DRAPES, DISPOSAL & NONWOVEN MMF6307.90.7020 8.50 KG SURGICAL DRAPES NES6307.90.7500 8.50 NO TOYS FOR PETS, TEXTILE MATERIALS
6307.90.8500 8.50 KG WALL BANNERS, MANMADE FIBRES
6307.90.9425 14.50 NO NATIONAL FLAGS OF THE UNITED STATES6307.90.9435 14.50 NO NATIONAL FLAGS OF NATIONS OTHER THAN THE UNITED
STATES
6307.90.9490 14.50 KG OTHER MADE-UP ARTICLES NES6309.00.0010 8.50 KG WORN CLOTHING & OTHER WORN ARTICLES
6309.00.0020 8.50 KG WORN CLOTHING & OTHER WORN ARTICLES, NES
6310.10.1000 3.70 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES, SORTED,
WOOL OR FINE ANIMAL HAIR
6310.10.2010 8.50 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES, SORTED,
COTTON
6310.10.2020 14.40 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES, SORTED,
MMF
6310.10.2030 11.10 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES, SORTED,
NOT COTTON/MMF
6310.90.1000 3.70 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES, NOT
SORTED, WOOL OR FINE ANIMAL HAIR
6310.90.2000 8.50 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES, NOT
SORTED, NOT WOOL
6501.00.30 4.4 DZ HAT FORMS/BODIES, NOT BLOCKED, NO BRIMS, FUR,
MEN'S AND BOYS'
6501.00.60 4.4 DZ HAT FORMS/BODIES, NOT BLOCKED, NO BRIMS, FUR,
WOMEN'S AND GIRLS'
6502.00.20 18.7 DZ HAT SHAPES, ASSEMBLED FROM STRIPS, VEGETABLE
FIBRE, SEWEDWT/REG147/1
Page 53
6502.00.40 18.7 DZ HAT SHAPES, PLAITED OR ASSEMBLED FROM STRIPS,
VEGETABLE FIBRE, NOT-SEWED, NOTBLEACHED/COLOURED
6502.00.60 18.7 DZ HAT SHAPES, PLAITED OR ASSEMBLED FROM STRIPS,
VEGETABLE FIBRE, NOT-SEWED, BLEACHED/COLOURED
6503.00.30 5.8 DZ FELT HATS AND OTHER HEADGEAR, MEN'S AND BOYS'6503.00.60 5.8 DZ FELT HATS AND OTHER HEADGEAR, NES6504.00.30 7.5 DZ HATS AND OTHER HEADGEAR, ASSEMBLED FROM STRIPS,
VEGETABLE FIBRE, SEWED
6504.00.60 7.5 DZ HATS AND OTHER HEADGEAR, ASSEMBLED FROM STRIPS6601.10.00 17.9 DZ GARDEN OR SIMILAR UMBRELLAS6601.91.00 17.8 DZ OTHER UMBRELLAS, TELESCOPIC SHAFT6601.99.00 11.2 DZ OTHER UMBRELLAS, NES
5. (a) The primary unit of measure for the following tariff items in U.S. category 666 shall
be NO and shall be converted into SME by a factor of 5.5:
6301.10.0000 ELECTRIC BLANKETS
6301.40.0010 BLANKETS (NOT ELECTRIC) & TRAVEL RUGS OF SYNTHETIC FIBRE, WOVEN
6301.40.0020 BLANKETS (NOT ELECTRIC) & TRAVEL RUGS OF SYNTHETIC FIBRE, NES
6301.90.0010 BLANKETS AND TRAVELLING RUGS OF ARTIFICIAL FIBRE6302.10.0020 BED LINEN, KNITTED OR CROCHETED FABRIC, EXCLUDING COTTON6302.22.1030 SHEETS WITH TRIM, NAPPED, PRINTED, MANMADE FIBRE6302.22.1040 SHEETS WITH TRIM, NOT NAPPED, PRINTED, MANMADE FIBRE6302.22.1050 BOLSTER CASES WITH TRIM, PRINTED, MANMADE FIBRE
6302.22.1060 BED LINEN WITH TRIM, PRINTED, MANMADE FIBRE, NES
6302.22.2020 SHEETS, NOT TRIMMED, PRINTED, MANMADE FIBRE6302.22.2030 BED LINEN, NOT TRIMMED, PRINTED, MANMADE FIBRE, NES6302.32.1030 SHEETS WITH TRIM, NAPPED, MANMADE FIBRE6302.32.1040 SHEETS WITH TRIM, NOT NAPPED, MANMADE FIBRE6302.32.1050 BOLSTER CASES WITH TRIM, MANMADE FIBRE
6302.32.1060 BED LINEN WITH TRIM, MANMADE FIBRE, NES
6302.32.2030 SHEETS, NOT TRIMMED, NAPPED, MANMADE FIBRE6302.32.2040 SHEETS NOT TRIMMED, NOT NAPPED, MANMADE FIBRE6302.32.2050 BOLSTER CASES, NOT TRIMMED, MANMADE FIBRE6302.32.2060 BED LINEN NES, MANMADE FIBRE6304.11.2000 BEDSPREADS, KNIT/CROCHETED, MANMADE FIBRE
6304.19.1500 BEDSPREADS WITH TRIM, MANMADE FIBRE, NES
6304.19.2000 BEDSPREADS, MANMADE FIBRE, NES
(b) The primary unit of measure for the following tariff items in U.S. category 666 shall
be NO and shall be converted into SME by a factor of 0.9:
6302.22.1010 PILLOWCASES WITH TRIM, PRINTED, NAPPED, MANMADE FIBRE
6302.22.1020 PILLOWCASES WITH TRIM, PRINTED, NOT NAPPED, MANMADE FIBRE6302.22.2010 PILLOWCASES, NOT TRIMMED, PRINTED, MANMADE FIBRE6302.32.1010 PILLOWCASES WITH TRIM, NAPPED, MANMADE FIBRE6302.32.1020 PILLOWCASES WITH TRIM, NOT NAPPED, MANMADE FIBRE
6302.32.2010 PILLOWCASES, NOT TRIMMED, NAPPED, MANMADE FIBRE
6302.32.2020 PILLOWCASES NOT TRIMMED, NOT NAPPED, MANMADE FIBRE
6. The primary unit of measure for garment parts of subheadings 6117.90 and 6217.90 shall be
KG and shall be converted into SME by applying the following factors:
Cotton apparel 8.50
Wool apparel 3.70
Man-made fibre apparel 14.40WT/REG147/1
Page 54
Other non-cotton vegetable fibre apparel 12.50
7. For the purposes of this Schedule:
DPR  means dozen pair;
DZ means dozen;
KG means kilogram;
NO means number; and
SM means square metre.
APPENDIX III.1.7: COUNTRY-S PECIFIC DEFINITIONS
Definitions Specific to Canada
general import statistics  means statistics issued by Statistics Canada or, where available,
import permit data provided by the Export and Import Permits Bureau of the Department of Foreign
Affairs and International Trade, or their successors.
Definitions Specific to Costa Rica
general import statistics  means statistics issued by the Instituto Nacional de Estadísticas y
Censos (INEC) or its successor.
ANNEX III.2: EXCEPTIONS TO ARTICLES III.2 AND III.7
Section I - Canadian Measures
1. Articles III.2 and III.7 shall not apply to controls by Canada on the export of logs of all
species.
2. Articles III.2 and III.7 shall not apply to controls by Canada on the export of unprocessed fish
pursuant to the following existing statutes, as amended:
(a) New Brunswick Fish Processing Act , R.S.N.B. c. F-18.01 (1982), and Fisheries
Development Act, S.N.B. c. F-15.1 (1977);
(b) Newfoundland Fish Inspection Act , R.S.N. 1990, c. F-12;
(c) Nova Scotia Fisheries and Coastal Resources Act , S.N.S. 1996, c. 25;
(d) Prince Edward Island Fish Inspection Act , R.S.P.E.I. 1988, c. F-13; and
(e) Quebec Marine Products Processing Act , R.S.Q. 1999, C.T-11-01.
3. Without prejudice to Costa Rica’s rights under the WTO Agreement, Articles III.2 and III.7
shall not apply to:
(a) measures by Canada respecting the importation of any goods enumerated or referred
to in Schedule VII of the Customs Tariff , R.S.C. 1985, c. 41 (3rd Supp.), as amended;WT/REG147/1
Page 55
(b) measures by Canada respecting the exportation of liquor for delivery into any country
into which the importation of liquor is prohibited by law under the existing provisions
of the Export Act , R.S.C. 1985, c. E-18, as amended;
(c) Canadian excise duties on absolute alcohol used in manufacturing under the existing
provisions of the Excise Act , R.S.C. 1985, c. E-14, as amended; and
(d) measures by Canada prohibiting the use of foreign or non-duty paid ships in the
coasting trade of Canada unless granted a license under the Coasting Trade Act , S.C.
1992, c. 31,
to the extent that such provisions were mandatory legislation at the time of Canada's accession to the
General Agreement on Tariffs and Trade , 1947, and have not been amended so as to decrease their
conformity with the GATT 1994.
4. Articles III.2 and III.7 shall not apply to:
(a) the continuation or prompt renewal of a non-conforming provision of any statute
referred to in paragraph 2 or 3; and
(b) the amendment to a non-conforming provision of any statute referred to in paragraph
2 or 3 to the extent that the amendment does not decrease the conformity of theprovision with Articles III.2 and III.7.
Section II - Costa Rican Measures
Articles III.2 and III.7 shall not apply to controls imposed by Costa Rica upon
(a) the import, refining and wholesale distribution of crude oil, its fuel, derivatives,
asphalt and gasoline pursuant to the effective provisions of Law No. 7356 of
September 6, 1993, or pursuant to any subsequent equivalent provision;
(b) the import of used merchandise described in the following tariff classifications:
(Note: the descriptions are provided solely for reference purposes)
Tariff
classification Description
Subheading Retreaded tires
4012.10
Subheading Pneumatic tires4012.20
Item 63.05 Sacks and bags, of a kind used for the packing of goods and other types of
receptacles
Item 63.09 Worn clothing and other worn articles
Item 63.10 Rags, scrap twine, cordage, rope and cables, and worn out articles of twine,
cordage, rope or cables, of textile materials
Item 87.02 Motor vehicles for the transport of ten or more persons, including the driver
Item 87.03 Motor cars and other motor vehicles principally designed for the transport of
persons (other than those of Part 87.02), including family-type vehicles
(station wagons and racing cars)
Item 87.04 Motor vehicles for the transport of goodsWT/REG147/1
Page 56
Item 87.05 Special purpose motor vehicles, other than those principally designed for the
transport of persons or goods (for example, wreckers, mobile cranes, fire
fighting vehicles, concrete mixers, road sweepers, spraying vehicles, mobile
workshops, mobile radiological units)
Item 87.06 Chassis fitted with engines, for the motor vehicles of Parts 87.01 to 87.05Item 87.07 Bodies (including cabs), for the motor vehicles of Parts 87.01 to 87.05
Item 87.11 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor,
with or without side-cars; side-cars
(c) the export of wood in logs and boards from forests, pursuant to Law No. 7575 of
April 16, 1996, or any subsequent equivalent provision;
(d) the export of hydrocarbons, pursuant to Law No. 7399 of May 3, 1994, or any
subsequent equivalent provision;
(e) the export of coffee, pursuant to Law No. 2762 of June 21, 1961 or any subsequent
equivalent provision;
(f) the import and export of etilic alcohol and crude rums.
ANNEX III.3.1: TARIFF ELIMINATION
1. The method for determining the interim rate of customs duty at each stage of reduction for an
item is indicated for the item in each Party's Schedule attached to this Annex.
2. For the purpose of the elimination of customs duties in accordance with Article III.3, interim
staged rates shall be rounded down, except as set out  in each Party's Schedule attached to this Annex,
at least to the nearest tenth of a percentage point or, if the rate of duty is expressed in monetary units,
at least to the nearest 0.001 of the official monetary unit of the Party.
3. Tariff rate quota  means a mechanism that provides for the application of a customs duty at a
certain rate to imports of a particular good up to a specified quantity (in-quota quantity), and at adifferent rate to imports of that good that exceed that quantity. The in-quota quantities which are set
out in the Annexes correspond to calendar years, except where otherwise indicated. In the year that
this Agreement enters into force, the in-quota quantity will be proportional to the number of days
remaining in that year.
Schedule of Canada
(TARIFF SCHEDULE ATTACHED AS SEPARATE VOLUME)
Schedule of Costa Rica
(TARIFF SCHEDULE ATTACHED AS SEPARATE VOLUME)
ANNEX III.3.2: SPECIAL SAFEGUARDS
1. Each Party may, for the agricultural goods specified by each Party in Appendix III.3.2.1 adopt
a special safeguard in the form of a tariff rate quota if the volume of imports of that good from the
other Party exceeds the trigger level for that good specified in Appendix III.3.2.1WT/REG147/1
Page 57
2. The trigger levels specified in Appendix III.3.2.1 shall be increased by 5 percent on January 1
of each year for ten years after the year of entry into force of the Agreement unless otherwise
provided.
3. Notwithstanding Article III.3 (Tariff Elimination) a Party may not apply an overquota tariff
rate under a special safeguard for a good specified in Appendix III.3.2.1 that exceeds the lesser of: (a)the applied MFN rate as of April 1, 2001; or (b) the MFN rate in effect at the time the special
safeguard is implemented.
4. A Party proposing to implement an over-quota tariff under this Annex shall provide the other
Party with 15 days advance notice and upon request, shall enter into consultations with that Party
within 15 days.
5. Neither Party may apply an over-quota tariff rate under this Annex and take an emergency
action under Article VI.2 (Emergency Action) for the same good at the same time.
6. An over-quota tariff imposed under this Annex may be maintained only until the end of the
calendar year in which it has been imposed. For the following calendar year the tariff shall return to
the level specified for that good for that year under Article III.3 (Tariff Elimination).
7. Any supplies of the good in question which were en route on the basis of a contract settled
before any additional over-quota tariff is imposed shall be exempted from the over-quota tariff,provided that they may be counted in the volume of imports of the product in question during the
following year for the purposes of triggering the provisions of paragraph 1 in that year.
8. The provisions of this Annex shall apply to the goods specified in Appendix III.3.2.1 for the
duration of the phase-out period of each good.
APPENDIX III.3.2.1: SPECIAL SAFEGUARD
List of Goods and Trigger Levels – Costa Rica
HS Description Trigger Levels
(Aggregated Levels)
1101.00.00
1103.11.00--Harina de Trigo o de Morcajo
--De Trigo10,000MT
1208.10.00
1208.90.00
2304
2306.40.00--De habas (frijoles, porotos,
fréjoles) de soja (soya)
--Las demás
Tortas y demás residuos sólidos
de la extracción de aceite desoja (soya)
--De nabo (de nabina) o de
colza5,000 MT
1507
1512.11.00; 1512.19.00
1514
1515.21.00; 1515.29.00
1516.20.90
1517.90--Aceite de soja (soya)
--Aceite de girasol
--Aceites de nabo (de nabina),
colza o mostaza--Aceite de maíz
--Otros
--Las demás1,200 MTWT/REG147/1
Page 58
ANNEX III.8: WINE AND DISTILLED SPIRITS
Canada
1. Except as provided in paragraphs 3 through 6, in respect of any measure related to the internal
sale and distribution of wine and distilled spirits, Article III.2 shall not apply to:
(a) a non-conforming provision of any existing measure;
(b) the continuation or prompt renewal of a non-conforming provision of any existing
measure; or
(c) an amendment to a non-conforming provision of any existing measure to the extent
that the amendment does not decrease its conformity with Article III.2.
2. The Party asserting that paragraph 1 applies to one of its measures shall have the burden of
establishing the validity of such assertion.
3. (a) Any measure related to the listing of wine and distilled spirits of the other Party shall:
(i) conform with Article III.2;
(ii) be transparent, non-discriminatory and provide for prompt decision on any
listing application, prompt written notification of such decision to theapplicant and, in the case of a negative decision, provide for a statement of
the reason for refusal;
(iii) establish administrative appeal procedures for listing decisions that provide
for prompt, fair and objective rulings;
(iv) be based on normal commercial considerations;
(v) not create disguised barriers to trade; and
(vi) be published and made generally available to persons of the other Party;
(b) Notwithstanding paragraph 3(a) and Article III.2, and provided that listing measures
of British Columbia otherwise conform with paragraph 3(a) and Article III.2,
automatic listing measures in the province of British Columbia may be maintainedprovided they apply only to existing estate wineries producing less than
30,000 gallons of wine annually and meeting the existing content rule.
4. (a) Where the distributor is a public entity, the entity may charge the actual cost-of-
service differential between wine or distilled spirits of the other Party and domestic
wine or distilled spirits. Any such differential shall not exceed the actual amount by
which the audited cost of service for the wine or distilled spirits of the exporting Party
exceeds the audited cost of service for the wine or distilled spirits of the importingParty;
(b) Notwithstanding Article III.2, Article I (D efinitions) except for the definition of
"distilled spirits", Article IV.3 (Wine), and Annexes A, B, and C, of the Agreement
between Canada and the European Economic Community concerning Trade andWT/REG147/1
Page 59
Commerce in Alcoholic Beverages , dated February 28, 1989, shall apply with such
changes as the circumstances may require;
(c) All discriminatory mark-ups on distilled spirits shall be eliminated immediately on
the date of entry into force of this Agr eement. Cost-of-service differential mark-ups
as described in subparagraph (a) shall be permitted;
(d) Any other discriminatory pricing measure shall be eliminated on the date of entry into
force of this Agreement.
5. (a) Any measure related to distribution of wine or distilled spirits of the other Party shall
conform with Article III.2;
(b) Notwithstanding subparagraph (a), and provided that distribution measures otherwise
ensure conformity with Article III.2, a Party may:
(i) maintain or introduce a measure limiting on-premise sales by a winery or
distillery to those wines or distilled spirits produced on its premises; and
(ii) maintain a measure requiring existing private wine store outlets in the
provinces of Ontario and British Columbia to discriminate in favour of wine
of those provinces to a degree no greater than the discrimination required by
such existing measure;
(c) Nothing in this Agreement shall prohibit the Province of Quebec from requiring that
any wine sold in grocery stores in Quebec be bottled in Quebec, provided that
alternative outlets are provided in Quebec for the sale of wine of the other Party,
whether or not such wine is bottled in Quebec.
6. Unless otherwise specifically provided in th is Annex, the Parties retain their rights and
obligations under the GATT 1994 and agreements negotiated under the WTO Agreement.
7. The Parties will refer issues related to this Annex to the Subcommittee on Agriculture
established under Article III.14.
8. For purposes of this Annex:
wine  includes wine and wine-containing beverages.
ANNEX III.10: EXPORT TAXES
Costa Rica
The provisions of Article III.10 shall not apply to the export taxes Costa Rica applies to
bananas, as provided in Law No. 5515 of April 19, 1974 and its amendments, Law No. 5519 of April
24, 1974 and its amendments and Law No. 4895 of November 16, 1971 and its amendments, or
pursuant to any subsequent equivalent provisions.WT/REG147/1
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CHAPTER IV: RULES OF ORIGIN
Article IV.1
Originating Goods
Except as otherwise provided in this Chapter, a good shall originate in the territory of a Party
where:
(a) the good is wholly obtained or produced entirely in the territory of one or both of the
Parties, as defined in Article IV.15;
(b) each of the non-originating materials used in the production of the good undergoes an
applicable change in tariff classification as set forth in Annex IV.1 (Specific Rules of
Origin) as a result of production occurring entirely in the territory of one or both of
the Parties, or the good otherwise satisfies the applicable requirements of that Annex
where no change in tariff classification is required, and the good satisfies all other
applicable requirements of this Chapter;
(c) the good is produced entirely in the territory of one or both of the Parties exclusively
from originating materials; or
(d) except for a good of Chapter 39 or Chapter 50 through 63 or except as provided in
Annex IV.1 (Specific Rules of Origin), the good is produced entirely in the territory
of one or both of the Parties but one or more of the non-originating materials used inthe production of the good cannot undergo a change in tariff classification because
both the good and the non-originating materials are classified in the same subheading,
or heading that is not further subdivided into subheadings, provided that the regional
value-content of the good, determined in accordance with Article IV.2, is not lower
than 35 per cent when the transaction value method is used, or 25 per cent when thenet cost method is used, and the good meets the other applicable requirements of this
Chapter.
Article IV.2
Regional Value-content
1. Except as provided in paragraph 5, each Party shall provide that the regional value content of
a good shall be calculated, at the choice of the exporter or producer of the good, on the basis of either
the transaction value method set out in paragraph 2 or, for an automotive good of subheading 8407.31
through 8407.34 or heading 87.01 through 87.08, the net cost method set out in paragraph 3.
2. Each Party shall provide that an exporter or producer may calculate the regional value content
of a good on the basis of the following transaction value method:
RVC = TV - VNM x 100
TV
where:
RVC is the regional value content, expressed as a percentage;
TV is the transaction value of the good, adjusted to an F.O.B. basis; andWT/REG147/1
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VNM is the value of non-originating materials used by the producer in the production of the
good, in accordance with paragraph 6 of this Article.
3. Each Party shall provide that an exporter or a producer may calculate the regional value
content of an automotive good of subheading 8407.31 through 8407.34 or heading 87.01 through
87.08 on the basis of the following net cost method:
RVC = NC - VNM x 100
NC
where:
RVC is the regional value content, expressed as a percentage;
NC is the net cost of the good; andVNM is the value of non-originating materials used by the producer in the production of the
good, in accordance with paragraph 6 of this Article.
4. The value of non-originating materials used by the producer in the production of a good
shall not, for purposes of calculating the regional value content of the good under paragraph 2 or 3,
include the value of non-originating materials used to produce originating materials that aresubsequently used in the production of the good.
1
5. For purposes of calculating the net cost of a good under paragraph 3, the producer of the good
may:
(a) calculate the total cost incurred with respect to all goods produced by that producer,
subtract any sales promotion, marketing and after-sales service costs, royalties,shipping and packing costs, as well as non-allowable interest costs that are included
in the total cost of all such goods, and then reasonably allocate the resulting net cost
of those goods to the good;
(b) calculate the total cost incurred with respect to all goods produced by that producer,
reasonably allocate the total cost to the good, and then subtract any sales promotion,
marketing and after-sales service costs, royalties, shipping and packing costs and non-
allowable interest costs that are included in the portion of the total cost allocated tothe good; or
                                                     
1 Article IV.2.4 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
intermediate material.
With respect to paragraph 4, where an originating intermediate material is subsequently used by a
producer with non-originating materials (whether or not produced by the producer) to produce the good, thevalue of such non-originating materials shall be included in the VNM of the good.WT/REG147/1
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(c) reasonably allocate each cost that forms part of the total cost incurred with respect to
the good so that the aggregate of these costs does not include any sales promotion,
marketing and after-sales service costs, royalties, shipping and packing costs, or non-
allowable interest costs.2
6. Except as provided in paragraph 7, the value of a material used in the production of a good
shall:
(a) be the transaction value of the material determined in accordance with Article 1 of the
Customs Valuation Agreement;
(b) in the event that there is no transaction value or the transaction value of the material
is unacceptable under Article 1 of the Customs Valuation Agreement, be determined
in accordance with Articles 2 through 7 of the Customs Valuation Agreement;
(c) where not covered under subparagraph (a) or (b), include freight, insurance, packing
and all other costs incurred in transporting the material to the place of importation; or
(d) in the case of a domestic transaction, be determined in accordance with the principles
of the Customs Valuation Agreement in the same manner as an international
transaction, with such modifications as may be required by the circumstances.
7. The value of an intermediate material shall be:
(a) the total cost incurred with respect to all goods produced by the producer of the good
that can be reasonably allocated to that intermediate material; or
(b) the sum of all costs that comprise the to tal cost incurred with respect to that
intermediate material that can be reasonably  allocated to that intermediate material.
8. The value of an indirect material shall be based on the Generally Accepted Accounting
Principles applicable in the territory of the Party in which the good is produced.
Article IV.3
Accumulation
For purposes of determining whether a good is an originating good, the production of the
good in the territory of one or both of the Parties by one or more producers shall, at the choice of the
exporter or producer of the good for which preferential tariff treatment is claimed, be considered to
have been performed in the territory of either of the Parties by that exporter or producer, provided
that:
(a) all non-originating materials used in the production of the good undergo an applicable
tariff classification change set forth in Annex IV.1 (Specific Rules of Origin), and the
good satisfies any applicable regional value content requirement, entirely in the
territory of one or both of the Parties; and
                                                     
2 With respect to paragraph 5, 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 IV.2.3.WT/REG147/1
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(b) the good satisfies all other applicable requirements of this Chapter.
Article IV.4
De Minimis
1. Except as provided in paragraphs 2 and 3, a good shall be considered to be an originating
good if the value of all non-originating materials used in the production of the good that do not
undergo an applicable change in tariff classification set out in Annex IV.1 (Specific Rules of Origin)
is not more than 10 per cent of the transaction value of the good, adjusted to an F.O.B. basis, provided
that:
(a) if the good is subject to a regional value-content requirement, the value of such non-
originating materials shall be taken into account in calculating the regional valuecontent of the good; and
(b) the good satisfies all other applicable requirements of this Chapter.
2. Except as specified in a product-specific rule of origin of Annex IV.1 (Specific Rules of
Origin) applicable to a good, paragraph 1 does not apply to a non-originating material used in the
production of a good of Chapter 1 through 24 of the Harmonized System unless the non-originatingmaterial is provided for in a different subheadin g from the good for which origin is being determined
under this Article.
3. A good of Chapter 50 through 63 of the Harmonized System that is not originating because
certain fibres or yarns used in the production of the component of the good that determines the tariff
classification of the good do not undergo an applicable change in tariff classification set out in AnnexIV.1 (Specific Rules of Origin), shall nonetheless be considered as originating if the total weight of all
such fibres or yarns in that component is not more than 10 per cent of the total weight of that
component.
3
Article IV.5
Fungible Goods and Materials
For purposes of determining whether a good is an originating good:
(a) where originating and non-originating fungible materials are used in the production of
a good, the determination of whether the materials are originating need not be made
through the identification of any specific fungible material, but may be determined onthe basis of any of the inventory management methods set out in Annex IV.5
(Inventory Management Methods); and
(b) where originating and non-originating fungible goods are physically combined or
mixed in inventory and, prior to their exportation, do not undergo any production or
any other operation in the territory of the Party in which they were physicallycombined or mixed in inventory, other than unloading, reloading, or any other
                                                     
3 For purposes of applying paragraph 3, the identification of the component that determines the tariff
classification of the good shall be based on the General Rules for the Interpretation of the Harmonized System.
When the component that determines the tariff classification is a blend of 2 or more yarns or fibres, all yarnsand, where applicable, fibres, in that component are to be taken into account.WT/REG147/1
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operation necessary to preserve the goods in good condition or to transport the goods
for exportation to the other Party’s territory, the determination may be made on the
basis of any of the inventory management methods set out in Annex IV.5 (Inventory
Management Methods).
Article IV.6
Sets or Assortments of Goods
1. Except as provided in Annex IV.1 (Specific Rules of Origin), a set or assortment as defined
in Rule 3 of the General Rules for the Interpretation of the Harmonized System, shall be considered as
originating, provided that:
(a) all the component products, including packaging materials and containers, are
originating; or
(b) where the set or assortment contains non- originating component products, including
packaging materials and containers:
(i) at least one of the component products, or all the packaging materials and
containers for the set, is originating; and
(ii) the regional value content of the set or assortment is not less than 50 per cent
under the transaction value method.
2. For purposes of subparagraph 1(b), the value of packaging materials and containers for the set
shall be taken into account as originating or non-originating materials, as the case may be, in
calculating the regional value content of the set.
Article IV.7
Accessories, Spare Parts and Tools
Accessories, spare parts and tools delivered with the good that form part of the good's
standard accessories, spare parts or tools, shall be considered as originating if the good originates and
shall be disregarded in determining whether all the non-originating materials used in the production of
the good undergo the applicable change in tariff classification set out in Annex IV.1 (Specific Rules
of Origin), provided that:
(a) the accessories, spare parts and tools are not invoiced separately from the good,
whether or not each is listed or detailed on the invoice;
(b) the quantities and value of the accessories, spare parts or tools are customary for the
good; and
(c) if the good is subject to a regional value content requirement, the value of the
accessories, spare parts or tools shall be taken into account as originating or non-
originating materials, as the case may be, in calculating the regional value content ofthe good.WT/REG147/1
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Article IV.8
Indirect Materials
An indirect material shall be considered as originating without regard to where it is produced.
Article IV.9
Packaging Materials and Containers for Retail Sale
Packaging materials and containers in which a good is packaged for retail sale shall, if
classified with the good, be disregarded in determining whether all the non-originating materials usedin the production of the good undergo the applicable change in tariff classification set out in Annex
IV.1 (Specific Rules of Origin) and, if the good is subject to a regional value content requirement, the
value of such packaging materials and containers shall be taken into account as originating or non-
originating materials, as the case may be, in calculating the regional value content of the good.
Article IV.10
Packing Materials and Containers for Shipment
Packing materials and containers in which a good is packed for shipment shall be disregarded
in determining whether:
(a) the non-originating materials used in the production of the good undergo an
applicable change in tariff classification set out in Annex IV.1 (Specific Rules of
Origin); and
(b) the good satisfies a regional value-content requirement.
Article IV.11
Transshipment
A good shall not be considered to be an originating good by reason of having undergone
production that satisfies the requirements of Article IV.1 if, subsequent to that production, the good:
(a) undergoes further production or any other operation outside the territories of 4 The
rules of origin under Chapter IV are based on the 1996 Harmonized System. the
Parties, other than unloading, reloading or any other operation necessary to preserve
it in good condition or to transport the good to the territory of a Party;
(b) does not remain under customs control while outside the territories of the Parties; or
(c) enters into trade or consumption in the territory of a non-Party.
Article IV.12
Non-Qualifying Operations
Except for sets of Article IV.6 or of Annex IV.1 (Specific Rules of Origin) or except as
specified in a product-specific rule of origin of Annex IV.1 (Specific Rules of Origin) applicable to
the good, a good shall not be considered to be an originating good merely by reason of:WT/REG147/1
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(a) disassembly of the good into its parts;
(b) a change in the end use of the good;
(c) the mere separation of one or more individual materials or components from an
artificial mixture;
(d) mere dilution with water or another substance that does not materially alter the
characteristics of the good;
(e) removal of dust or damaged parts from, oiling, or applying anti-rust paint or
protective coatings to, the good;
(f) testing or calibration, division of loose shipments, grouping into packages, or
attaching identifying labels, markings or signs to the good or its packaging; or
(g) packaging or repackaging of the good.
Article IV.13
Interpretation and Application
For purposes of this Chapter:(a) the basis for tariff classification in this Chapter is the Harmonized System
4;
(b) where applying Article IV.1(d), the de termination of whether a heading or
subheading under the Harmonized System provides for both a good and the materials
that are used in the production of the good shall be made on the basis of thenomenclature of the heading or subheading and the relevant Section or Chapter
Notes, in accordance with the General Rules for the Interpretation of the Harmonized
System;
(c) in applying the Customs Valuation Agreement under this Chapter:
(i) the principles of the Customs Valuation Agreement shall apply to domestic
transactions, with such modifications as may be required by the
circumstances, as would apply to international transactions;
(ii) the provisions of this Chapter shall take precedence over the Customs
Valuation Agreement to the extent of any difference; and
(iii) the definitions in Article IV.15 shall take precedence over the definitions in
the Customs Valuation Agreement to the extent of any difference; and
(d) all costs referred to in this Chapter shal l be recorded and maintained in accordance
with the Generally Accepted Accounting Principles applicable in the territory of the
Party in which the good is produced.
                                                     
4 The rules of origin under Chapter IV are based on the 1996 Harmonized System.WT/REG147/1
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Article IV.14
Consultation and Modifications
1. The Parties shall consult regularly to ensure th at this Chapter is administered effectively,
uniformly and consistently with the spirit and objectives of this Agreement, and shall cooperate in the
administration of this Chapter in accorda nce with Chapter V (Customs Procedures).
2. Should problems arise between the Parties concerning the interpretation of the provisions of
this Chapter, the Parties agree to consult with each other on the establishment and implementation,
through their respective laws or regulations, of Uniform Regulations regarding the interpretation,
application and administration of this Chapter.
3. A Party that considers that this Chapter requires modification to take into account
developments in production processes or other matters may submit a proposed modification along
with supporting rationale and any studies to the other Party for consideration and any appropriate
action under Chapter III (National Treatment and Market Access of Goods).
Article IV.15
Definitions
For purposes of this Chapter:
F.O.B. means free on board, regardless of the mode of transportation, at the point of direct
shipment by the seller to the buyer;
fungible goods or fungible materials  means goods or materials that are interchangeable for
commercial purposes and whose properties are essentially identical;
Generally Accepted Accounting Principles  means the principles used in the territory of
each Party, which provide substantial authorized support with regard to the recording of income,
costs, expenses, assets and liabilities involved in the disclosure of information and preparation of
financial statements. These indicators may be broad guidelines of general application, as well as those
standards, practices and procedures usually employed in accounting;
goods wholly obtained or produced entirely in the territory of one or both of the Parties
means:
(a) minerals and other non-living natural resources extracted in or taken from the
territory of one or both of the Parties;
(b) vegetable goods harvested in the territory of one or both of the Parties;
(c) live animals born and raised entirely in the territory of one or both of the Parties;
(d) goods obtained from live animals in the territory of one or both of the Parties;
(e) goods obtained from hunting or fishing in the territory of one or both of the Parties;
(f) goods (fish, shellfish and other marine life) taken from the sea, seabed or subsoil
outside the territory of one or both of the Parties by a vessel registered, recorded orlisted with a Party, or leased by a company established in the territory of a Party, andWT/REG147/1
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entitled to fly its flag or by a vessel not exceeding 15 tons gross tonnage that is
licensed by a Party;
(g) goods produced on board a factory ship from the goods referred to in subparagraph
(f), provided such factory ship is registered, recorded or listed with a Party, or leased
by a company established in the territory of a Party, and entitled to fly its flag;
(h) goods, other than fish, shellfish and other marine life, taken or extracted from the
seabed or the subsoil of the continental shelf or the exclusive economic zone of either
of the Parties;
(i) goods, other than fish, shellfish and other marine life, taken or extracted from the
seabed or the subsoil, in the area outside the continental shelf and the exclusive
economic zone of either of the Parties or of any other State as defined in the United
Nations Convention on the Law of the Sea, by a vessel registered, recorded or listedwith a Party and entitled to fly its flag, or by a Party or person from a Party;
(j) goods taken from outer space, provided they are obtained by a Party or a person of a
Party and not processed in a non-Party;
(k) waste and scrap derived from:
(i) production in the territory of one or both of the Parties; or
(ii) used goods collected in the territory of one or both of the Parties, provided
such goods are fit only for the recovery of raw materials; and
(l) goods produced in the territory of one or both of the Parties exclusively from goods
referred to in subparagraphs (a) through (k), or from their derivatives, at any stage of
production;
identical or similar goods  means "identical goods" and "similar goods", respectively, as
defined in the Customs Valuation Agreement;
indirect material  means a good used in the production, testing or inspection of a good but
not physically incorporated into the good, or a good used in the maintenance of buildings or theoperation of equipment associated with the production of a good, including:
(a) fuel and energy;
(b) tools, dies and moulds;
(c) spare parts and materials used in the maintenance of equipment and buildings;
(d) lubricants, greases, compounding materials and other materials used in the production
or used to operate equipment and buildings;
(e) gloves, glasses, footwear, clothing, safety equipment and supplies;
(f) equipment, devices, and supplies used for testing or inspecting the goods;
(g) catalysts and solvents; andWT/REG147/1
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(h) any other goods that are not incorporated into the good but whose use in the
production of the good can reasonably be demonstrated to be a part of that
production;
intermediate material  means a material that is produced by a producer of a good and used in
the production of that good;
material  means a good that is used in the production of another good, and includes a part or
an ingredient;
net cost  means total cost minus sales promotion, marketing and after-sales service costs,
royalties, shipping and packing costs, and non-allowa ble interest costs that are included in the total
cost;
net cost of a good  means the net cost that can be reasonably allocated to a good using one of
the methods set out in Article IV.2.5;
non-allowable interest costs  means interest costs incurred by a producer that exceed 700
basis points above the applicable national government interest rate identified for comparable
maturities;
non-originating good or non-originating material  means a good or material that does not
qualify as originating under this Chapter;
producer  means a person who grows, mines, harvests, fishes, hunts, manufactures, processes
or assembles a good;
production  means growing, mining, harvesting, fishing, trapping, hunting, manufacturing,
processing or assembling a good;
reasonably allocate  means to apportion in a manner appropriate to the circumstances;
royalties  means payments of any kind, including payments under technical assistance or
similar agreements, made as consideration for the use or right to use any copyright, literary, artistic, or
scientific work, patent, trademark, design, model, plan, secret formula or process, excluding thosepayments under technical assistance or similar agreements that can be related to specific services such
as:
(a) personnel training, without regard to where performed; and
(b) if performed in the territory of one or both of the Parties, engineering, tooling, die-
setting, software design and similar computer services, or other services;
sales promotion, marketing and after-sales service costs  means the following costs related
to sales promotion, marketing and after-sales service:
(a) sales and marketing promotion; media advertising; advertising and market research;
promotional and demonstration materials; exhibits; sales conferences, trade shows
and conventions; banners; marketing displays; free samples; sales, marketing and
after-sales service literature (product brochures, catalogues, technical literature, price
lists, service manuals, sales aid information); establishment and protection of logos
and trademarks; sponsorships; wholesale and retail restocking charges; entertainment;WT/REG147/1
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(b) sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise
incentives;
(c) salaries and wages; sales commissions; bonuses; benefits (for example, medical,
insurance, pension); traveling and living expenses; membership and professional fees;
for sales promotion, marketing and after-sales service personnel;
(d) recruiting and training of sales promotion, marketing and after-sales service
personnel, and after-sales training of customers' employees, where such costs are
identified separately for sales promotion, marketing and after-sales service of goods
on the financial statements or cost accounts of the producer;
(e) product liability insurance;
(f) office supplies for sales promotion, marketing and after-sales service of goods, where
such costs are identified separately for sales promotion, marketing and after-salesservice of goods on the financial statements or cost accounts of the producer;
(g) telephone, mail and other communications, where such costs are identified separately
for sales promotion, marketing and after-sales service of goods on the financial
statements or cost accounts of the producer;
(h) rent and depreciation of sales promotion, marketing and after-sales service offices
and distribution centres;
(i) property insurance premiums, taxes, cost of utilities, and repair and maintenance of
sales promotion, marketing and after-sales service offices and distribution centres,
where such costs are identified separately for sales promotion, marketing and after-
sales service of goods on the financial statements or cost accounts of the producer;and
(j) payments by the producer to other persons for warranty repairs;
shipping and packing costs  means the costs incurred in packing a good for shipment and
shipping the good from the point of direct shipment to the buyer, excluding costs of preparing and
packaging the good for retail sale;
total cost  means all product costs, period costs and other costs incurred in the territory of one
or both of the Parties;
transaction value  means:
(a) the price actually paid or payable for a good or material with respect to a transaction
of the producer of the good, adjusted in accordance with the principles of paragraphs
1, 3 and 4 of Article 8 of the Customs Valuation Agreement, regardless of whether
the good or material is sold for export; or
(b) where there is no transaction value or the transaction value is unacceptable under
Article 1 of the Customs Valuation Agreement, the value determined in accordancewith Articles 2 through 7 of the Customs Valuation Agreement; and
used  means used or consumed in the production of goods.WT/REG147/1
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ANNEX IV.1: SPECIFIC RULES OF ORIGIN*
ANNEX IV.5: INVENTORY MANAGEMENT METHODS
Section I: Fungible Materials
Subsection 1: Definitions and Interpretation
For purposes of this Section:
average method  means the method by which the origin of fungible materials withdrawn from
materials inventory is based on the ratio, calculated under Section 4, of originating materials and non-
originating materials in materials inventory;
FIFO method means the method by which the origin of fungible materials first received in
materials inventory is considered to be the origin of fungible materials first withdrawn from materials
inventory;
LIFO method  means the method by which the origin of fungible materials last received in
materials inventory is considered to be the origin of fungible materials first withdrawn from materials
inventory;
materials inventory  means:
(a) with respect to a producer of a good, an inventory of fungible materials that are used
in the production of the good; and
(b) with respect to a person from whom the producer of the good acquired such fungible
materials, an inventory from which fungible materials are sold or otherwise
transferred to the producer of the good;
opening inventory  means the materials inventory at the time an inventory management
method is chosen; and
origin identifier  means any mark that identifies fungible materials as originating materials or
non-originating materials.
Subsection 2: General
1. The inventory management methods for determining whether fungible materials referred to in
Article IV.5(a) are originating materials are the following:
(a) specific identification method;
(b) FIFO method;
(c) LIFO method; and
(d) average method;
                                                     
* See footnote on page 1.WT/REG147/1
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2. Where a producer of a good or a person from whom the producer acquired the materials that
are used in the production of the good chooses an inventory management method referred to in
paragraph 1, that method, including the averaging period chosen in the case of the averaging method,
shall be used from the time the choice is made until the end of the fiscal year of the producer or
person.
Subsection 3: Specific Identification Method
1. Except as otherwise provided under paragraph 2, where the producer or person referred to in
Subsection 2.2 chooses the specific identification method, the producer or person shall physically
segregate, in materials inventory, originating materials that are fungible materials from non-
originating materials that are fungible materials.
2. Where originating materials or non-originating materials that are fungible materials are
marked with an origin identifier, the producer or person need not physically segregate those materials
under paragraph 1 if the origin identifier remains visible throughout the production of the good.
Subsection 4: Average Method
1. Where the producer or person referred to in Subsection 2.2 chooses the average method, the
origin of fungible materials withdrawn from material s inventory is determined on the basis of the ratio
of originating materials and non-originating materials in materials inventory that is calculated under
paragraphs 2 and 3.
2. The ratio is calculated with respect to a one-month or three-month period, at the choice of the
producer or person, by dividing:
(a) the sum of:
(i) the total units of originating materials or non-originating materials that are
fungible materials and that were in materials inventory at the beginning of the
preceding one-month or three-month period; and
(ii) the total units of originating materials or non-originating materials that are
fungible materials and that were received in materials inventory during that
preceding one-month or three-month period;
by:
(b) the sum of:
(i) the total units of originating materials and non-originating materials that are
fungible materials and that were in materials inventory at the beginning of thepreceding one-month or three-month period; and
(ii) the total units of originating materials and non-originating materials that are
fungible materials and that were received in materials inventory during that
preceding one-month or three-month period.
3. The ratio calculated with respect to a preceding one-month or three-month period under
paragraph 2 is applied to the fungible materials remaining in materials inventory at the end of the
preceding one-month or three-month period.WT/REG147/1
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4. Where the good is subject to a regional value-content requirement and the regional value
content of that good is calculated under the transaction value method or the net cost method, the ratio
is calculated with respect to each shipment of the good by dividing:
(a) the total units of originating materials or  non-originating materials that are fungible
materials and that were in materials inventory prior to the shipment;
by:
(b) the total units of originating materials and non-originating materials that are fungible
materials and that were in materials inventory prior to the shipment.
5. The ratio calculated with respect to a shipment of a good under paragraph 4 is applied to the
fungible materials remaining in materials inventory after the shipment.
Subsection 5: Manner of Dealing with Opening Inventory
1. Except as otherwise provided under paragraphs 2 and 3, where the producer or person referred
to in Subsection 2.2 has fungible materials in opening inventory, the origin of those fungible materials
is determined by:
(a) identifying, in the books of the producer or person, the latest receipts of fungible
materials that add up to the amount of fungible materials in opening inventory;
(b) determining the origin of the fungible ma terials that make up those receipts; and
(c) considering the origin of those fungible materials to be the origin of the fungible
materials in opening inventory.
2. Where the producer or person chooses the specific identification method and has, in opening
inventory, originating materials or non-originating ma terials that are fungible materials and that are
marked with an origin identifier, the origin of t hose fungible materials is determined on the basis of
the origin identifier.
3. The producer or person may consider all fungible materials in opening inventory to be non-
originating materials.
Section II: Fungible Goods
Subsection 6: Definitions and Interpretation
For purposes of this Section:
average method  means the method by which the origin of fungible goods withdrawn from
finished goods inventory is based on the ratio, calculated under Section 9, of originating goods and
non-originating goods in finished goods inventory;
FIFO method  means the method by which the origin of fungible goods first received in
finished goods inventory is considered to be the origin of fungible goods first withdrawn fromfinished goods inventory;
finished goods inventory  means an inventory from which fungible goods are sold or
otherwise transferred to another person;WT/REG147/1
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LIFO method  means the method by which the origin of fungible goods last received in
finished goods inventory is considered to be the origin of fungible goods first withdrawn from
finished goods inventory;
opening inventory  means the finished goods inventory at the time an inventory management
method is chosen; and
origin identifier  means any mark that identifies fungible goods as originating goods or non-
originating goods.
Subsection 7: General
1. The inventory management methods for determining whether fungible goods referred to in
Article IV.5(b) are originating goods are the following:
(a) specific identification method;
(b) FIFO method;
(c) LIFO method; and
(d) average method.
2. Where an exporter of a good or a person from whom the exporter acquired the good chooses
an inventory management method referred to in paragraph 1, that method, including the averaging
period chosen in the case of the averaging method, shall be used from the time the choice is made
until the end of the fiscal year of the exporter or person.
Subsection 8: Specific Identification Method
1. Except as provided under paragraph 2, where the exporter or person referred to in
Subsection 7.2 chooses the specific identification method, the exporter or person shall physically
segregate, in finished goods inventory, originating goods that are fungible goods from non-originatinggoods that are fungible goods.
2. Where originating goods or non-originating goods that are fungible goods are marked with an
origin identifier, the exporter or person need not physically segregate those goods under paragraph 1
if the origin identifier is visible on the fungible goods.
Subsection 9: Average Method
1. Where the exporter or person referred to in Subsection 7.2 chooses the average method, the
origin of each shipment of fungible goods withdrawn from finished goods inventory during a one-
month or three-month period, at the choice of the e xporter or person, is determined on the basis of the
ratio of originating goods and non-originating goods in finished goods inventory for the preceding
one-month or three-month period th at is calculated by dividing:
(a) the sum of:
(i) the total units of originating goods or non-originating goods that are fungible
goods and that were in finished goods inventory at the beginning of the
preceding one-month or three-month period; andWT/REG147/1
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(ii) the total units of originating or non-originating goods that are fungible goods
and that were received in finished goods inventory during that preceding one-
month or three-month period.
by:
(b) the sum of:
(i) the total units of originating goods and non-originating goods that are
fungible goods and that were in finished goods inventory at the beginning of
the preceding one-month or three-month period; and
(ii) the total units of originating goods and non-originating goods that are
fungible goods and that were received in finished goods inventory during that
preceding one-month or three-month period.
2. The ratio calculated with respect to a preceding month or three-month period under
paragraph 1 is applied to the fungible goods remaining in finished goods inventory at the end of the
preceding month or three-month period.
Subsection 10: Manner of Dealing with Opening Inventory1. Except as otherwise provided under paragraphs 2 and 3, where the exporter or person referred
to in Subsection 7.2 has fungible goods in opening inventory, the origin of those fungible goods is
determined by:
(a) identifying, in the books of the exporter or person, the latest receipts of fungible
goods that add up to the amount of fungible goods in opening inventory;
(b) determining the origin of those fungible goods that make up those receipts; and
(c) considering the origin of those fungible goods to be the origin of the fungible goods
in opening inventory.
2. Where the exporter or person chooses the specific identification method and has, in opening
inventory, originating goods or non-originating goods that are fungible goods and that are markedwith an origin identifier, the origin of those fung ible goods is determined on the basis of the origin
identifier.
3. The exporter or person may consider all fungible goods in opening inventory to be non-
originating goods.
CHAPTER V: CUSTOMS PROCEDURES
Section I-Certification of Origin
Article V.1
Certificate of Origin
1. The Parties shall establish, by the date of entry into force of this Agreement, a Certificate of
Origin for the purpose of certifying that a good being exported from the territory of a Party into theWT/REG147/1
Page 76
territory of the other Party qualifies as an originating good, and may thereafter revise the Certificate of
Origin by agreement.
2. Each Party may require that a Certificate of Origin for a good imported into its territory be
completed in the language required under its law.
3. Each Party shall:
(a) require an exporter in its territory to complete and sign a Certificate of Origin for any
exportation of a good for which an importer may claim preferential tariff treatment
upon importation of the good into the territory of the other Party; and
(b) provide that where an exporter in its territory is not the producer of the good, the
exporter may complete and sign a Certificate of Origin on the basis of:
(i) its knowledge of whether the good qualifies as an originating good;
(ii) its reasonable reliance on the producer's written declaration that the good
qualifies as an originating good; or
(iii) a completed and signed Certificate of Origin for the good voluntarily
provided to the exporter by the producer.
4. Nothing in paragraph 3 shall be construed to require a producer to provide a Certificate of
Origin to an exporter.
5. Each Party shall provide that a Certificate of Origin that has been completed and signed by an
exporter or a producer in the territory of the other Party that is applicable to:
(a) a single importation of one or more goods into the Party’s territory; or
(b) multiple importations of identical goods into the Party's territory to be made by the
same importer, that occur within a specified period, not exceeding 12 months, set outtherein by the exporter or producer;
shall be accepted by its customs administration for 4 years after the date on which the Certificate of
Origin was signed.
6. For any originating good that is imported into the territory of a Party on or after the date of
entry into force of this Agreement, each Party sh all accept a Certificate of Origin that has been
completed and signed prior to that date by the exporter or producer of that good.
Article V.2
Obligations Regarding Importations
1. Except as otherwise provided in this Chapter, each Party shall require an importer in its
territory that claims preferential tariff treatment for a good imported into its territory from the territory
of the other Party to:
(a) make a written declaration, based on a valid Certificate of Origin, that the good
qualifies as an originating good;WT/REG147/1
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(b) have the Certificate of Origin in its possession at the time the declaration is made;
(c) provide, on the request of that Party’s customs administration, a copy of the
Certificate of Origin; and
(d) promptly make a corrected declaration in a manner required by the customs
administration of the importing Party and pay any duties owing where the importerhas reason to believe that a Certificate of Origin on which a declaration was based
contains information that is not correct.
2. Each Party shall provide that, where an importer in its territory claims preferential tariff
treatment for a good imported into its territory from the territory of the other Party:
(a) the Party may deny preferential tariff treatment to the good if the importer fails to
comply with any requirement under this Chapter; and
(b) the importer shall not be subject to penalties for the making of an incorrect
declaration, if it voluntarily makes a corrected declaration pursuant to paragraph 1(d).
3. Each Party shall provide that, where a good would have qualified as an originating good when
it was imported into the territory of that Party but no claim for preferential tariff treatment was made
at that time, the importer of the good may, no later than 4 years after the date on which the good was
imported, apply for a refund of any excess duties paid as the result of the good not having beenaccorded preferential tariff treatment, on presentation of:
(a) a written declaration that the good qualified as an originating good at the time of
importation;
(b) a copy of the Certificate of Origin; and
(c) such other documentation relating to the importation of the good as that Party may
require.
Article V.3
Exceptions
Each Party shall provide that a Certificate of Origin shall not be required for:(a) a commercial importation of a good whose value does not exceed US$1,000 or its
equivalent amount in the Party's currency, or such higher amount as it may establish,
except that it may require that the invoice accompanying the importation include a
statement certifying that the good qualifies as an originating good;
(b) a non-commercial importation of a good whose value does not exceed US$1,000 or
its equivalent amount in the Party's currency, or such higher amount as it may
establish; or
(c) an importation of a good for which the Party into whose territory the good is imported
has waived the requirement for a Certificate of Origin;WT/REG147/1
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provided that the importation does not form part of a series of importations that may reasonably be
considered to have been undertaken or arranged for the purpose of avoiding the certification
requirements of Articles V.1 and V.2.
Article V.4
Obligations Regarding Exportations
1. Each Party shall provide that:
(a) an exporter in its territory, or a producer in its territory that has provided a copy of a
Certificate of Origin to that exporter pursuant to Article V.1.3(b)(iii), shall provide a
copy of the Certificate of Origin to its customs administration on request; and
(b) an exporter or a producer in its territory that has completed and signed a Certificate of
Origin, and that has reason to believe that the Certificate of Origin contains
information that is not correct, shall prom ptly notify in writing all persons to whom
the Certificate of Origin was given by the exporter or producer of any change that
could affect the accuracy or validity of the Certificate of Origin.
2. Each Party:
(a) shall provide that a false certification by an exporter or a producer in its territory that
a good to be exported to the territory of the other Party qualifies as an originating
good shall have the same legal consequences, with appropriate modifications, as
would apply to an importer in its territory for a contravention of its customs laws andregulations regarding the making of a false statement or representation; and
(b) may apply such measures as the circumstances may warrant where an exporter or a
producer in its territory fails to comply  with any requirement of this Chapter.
3. Neither Party may impose penalties on an exporter or a producer in its territory that
voluntarily provides written notification pursuant to paragraph (1)(b) with respect to the making of anincorrect certification.
Section II - Administration and Enforcement
Article V.5
Records
Each Party shall provide that:(a) an exporter or a producer in its territory that completes and signs a Certificate of
Origin shall maintain in its territory, for 5 years after the date on which the Certificate
of Origin was signed or for such longer period as the Party may specify, all recordsrelating to the origin of a good for which preferential tariff treatment was claimed in
the territory of the other Party, including records associated with:
(i) the purchase of, cost of, value of, and payment for, the good that is exported
from its territory;WT/REG147/1
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(ii) the purchase of, cost of, value of, and payment for, all materials, including
indirect materials, used in the production of the good that is exported from its
territory; and
(iii) the production of the good in the form in which the good is exported from its
territory; and
(b) an importer claiming preferential tariff treatment for a good imported into the Party's
territory shall maintain in that territory, for 5 years after the date of importation of the
good or for such longer period as the Party may specify, such documentation,
including a copy of the Certificate of Origin, as the Party may require relating to the
importation of the good.
Article V.6
Origin Verifications
1. For purposes of determining whether a good imported into its territory from the territory of
the other Party qualifies as an originating good, a Party may, through its customs administration,
conduct a verification solely by means of:
(a) written questionnaires to an exporter or a producer in the territory of the other Party;
(b) visits to the premises of an exporter or a producer in the territory of the other Party to
review the records referred to in Article V.5(a) and observe the facilities used in the
production of the good; or
(c) such other procedures as the Parties may agree.
2. An exporter or producer who receives a questionnaire pursuant to paragraph 1(a) shall be
given not less than 30 days from the date of receipt to provide responses and return the form. During
that period, the exporter or producer may submit a written request to the importing Party, asking for a
single extension of this deadline for a period not to exceed an additional 30 days.
3. Where an exporter or producer fails to return a duly completed questionnaire within the
above-mentioned period or extension, the importing Party may deny preferential tariff treatment to the
good in question.
4. Prior to conducting a verification visit pursuant to Paragraph (1)(b), a Party shall, through its
customs administration:
(a) deliver a written notification of its intention to conduct the visit to:
(i) the exporter or producer whose premises are to be visited;
(ii) the customs administration of the other Party at least 5 working days prior to
notifying the exporter or producer referred to in 4(a)(i); and
(iii) if requested by the other Party, the embassy of the other Party in the territory
of the Party proposing to conduct the visit; and
(b) obtain the written consent of the exporter or producer whose premises are to be
visited.WT/REG147/1
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5. The notification referred to in paragraph 4 shall include:
(a) the identity of the customs administration issuing the notification;
(b) the name of the exporter or producer whose premises are to be visited;
(c) the date and place of the proposed verification visit;
(d) the object and scope of the proposed verification visit, including specific reference to
the good that is the subject of the verification;
(e) the names and titles of the officials performing the verification visit; and
(f) the legal authority for the verification visit.
6. Where an exporter or producer has not given its written consent to a proposed verification
visit within 30 days of notification pursuant to paragraph 4, the notifying Party may deny preferential
tariff treatment to the good that would have been the subject of the visit.
7. Each Party shall provide that, where its customs administration receives notification pursuant
to paragraph 4, the customs administration may, within 15 days of receipt of the notification, postpone
the proposed verification visit for a period not exceeding 60 days from the date of such receipt, or for
such longer period as the Parties may agree.
8. Each Party shall provide that, when the exporter or producer receives notification pursuant to
paragraph 4, the exporter or producer may, on a single occasion, within 15 days of receipt of thenotification, request the postponement of the proposed verification visit for a period not exceeding 60
days from the date of such receipt, or for such longer period as agreed to by the notifying Party.
9. A Party shall not deny preferential tariff treatment to a good based solely on the postponement
of a verification visit pursuant to paragraph 7.
10. Each Party shall permit an exporter or a produc er whose good is the subject of a verification
visit by the other Party to designate 2 observers to be present during the visit, provided that:
(a) the observers do not participate in a manner other than as observers; and
(b) the failure of the exporter or producer to designate observers shall not result in the
postponement of the visit.
11. Each Party shall, through its customs administration, where conducting a verification of origin
involving a regional value content, de minimis calculation or any other provision in Chapter IV (Rules
of Origin) to which Generally Accepted Accounting Principles may be relevant, apply such principles
as are applicable in the territory of the Party from which the good was exported.
12. The Party conducting a verification shall, through its customs administration and within
120 days after it has received all the necessary information, provide the exporter or producer whose
good is the subject of the verification with a written determination of whether the good qualifies as an
originating good, including findings of fact and the legal basis for the determination. Notwithstandingthe foregoing, the customs administration may extend such period for up to 90 days, after notifying
the producer or exporter of the good.WT/REG147/1
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13. Where verifications by a Party indicate a pattern of conduct by an exporter or a producer of
false or unsupported representations that a good imported into its territory qualifies as an originating
good, the Party may withhold preferential tariff treatment to identical goods exported or produced by
such person until that person establishes compliance with Chapter IV (Rules of Origin).
14. Each Party shall provide that where it determines  that a certain good imported into its territory
does not qualify as an originating good based on a tariff classification or a value applied by the Party
to one or more materials used in the production of the good, which differs from the tariff classification
or value applied to the materials by the other Party, the Party's determination shall not become
effective until it notifies in writing both the importer of the good and the person that completed and
signed the Certificate of Origin for the good of its determination.
15. A Party shall not apply a determination made under paragraph 14 to an importation made
before the effective date of the determination where:
(a) the customs administration of the other Party has issued an advance ruling under
Article V.9 or any other ruling on the tariff classification or on the value of such
materials, or has given consistent treatment to the entry of the materials under the
tariff classification or value at issue, on which a person is entitled to rely; and
(b) the advance ruling, other ruling or consistent treatment was given prior to notification
of the determination.
16. If a Party denies preferential tariff treatment to a good pursuant to a determination made under
paragraph 14, it shall postpone the effective date of the denial for a period not exceeding 90 days
where the importer of the good, or the person who completed and signed the Certificate of Origin for
the good, demonstrates that it has relied in good faith to its detriment on the tariff classification orvalue applied to such materials by the customs administration of the other Party.
17. The Parties may also agree to develop other verification procedures under this Article.
Article V.7
Confidentiality
1. Each Party shall maintain, in accordance with its law, the confidentiality of the business
information collected pursuant to this Chapter and shall protect that information from disclosure that
could prejudice the competitive position of the person providing the information.
2. The confidential business information collected pursuant to this Chapter may only be
disclosed to those authorities responsible for the administration and enforcement of determinations of
origin, and of customs and revenue matters.
Article V.8
Penalties
1. Each Party shall maintain measures imposing criminal, civil or administrative penalties for
violations of its laws and regulations relating to this Chapter.
2. Nothing in Article V.2.2, V.4.3 or V.6.9 shall be construed to prevent a Party from applying
such measures as may be warranted by the circumstances in accordance with its legislation.WT/REG147/1
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Section III - Advance Rulings
Article V.9
Advance Rulings
1. Each Party shall, through its customs administration, provide for the expeditious issuance of
written advance rulings, prior to the importation of a good into its territory, to an importer in its
territory or an exporter or a producer in the territory of the other Party, on the asis of the facts and
circumstances presented by such importer, exporter or producer of the good, concerning:
(a) whether materials imported from a non-Party country used in the production of a
good undergo an applicable change in tariff classification set out in Annex IV.1Specific Rules of Origin) as a result of production occurring entirely in the territory
of one or both of the Parties;
(b) whether a good satisfies a regional value-content requirement set out in Chapter IV
(Rules of Origin);
(c) for the purpose of determining whether a good satisfies a regional value-content
requirement under Chapter IV (Rules of Origin), the appropriate basis or method for
value to be applied by an exporter or a producer in the territory of the other Party, in
accordance with the principles of the Customs Valuation Agreement, for calculating
the transaction value of the good or of the materials used in production of the good;
(d) whether a good qualifies as an originating good under Chapter IV (Rules of Origin);
(e) whether a good that re-enters its territory after the good has been exported from its
territory to the territory of the other Party for repair or alteration qualifies for duty-
free treatment in accordance with Article III.6 (Goods Re-Entered after Repair or
Alteration); or
(f) such other matters as the Parties may agree.
2. Each Party shall adopt or maintain procedures fo r the issuance of advance rulings, including a
detailed description of the information reasonably required to process an application for a ruling.
3. Each Party shall provide that its customs administration:
(a) may, at any time during the course of an evaluation of an application for an advance
ruling, request supplemental information from the person requesting the ruling;
(b) shall, after it has obtained all necessary information from the person requesting an
advance ruling, issue the ruling within 120 days; and
(c) shall provide to the person requesting the ruling a full explanation of the reasons for
the ruling.
4. Subject to paragraph 6, each Party shall apply an advance ruling to importations into its
territory of the good for which the ruling was requested, beginning on the date of its issuance or such
later date as may be specified in the ruling.WT/REG147/1
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5. Each Party shall provide to any person reque sting an advance ruling the same treatment,
including the same interpretation and application of provisions of Chapter IV (Rules of Origin)
regarding a determination of origin, as it provided  to any other person to whom it issued an advance
ruling, provided that the facts and circumstances are identical in all material respects.
6. The issuing Party may modify or revoke an advance ruling:
(a) if the ruling is based on an error:
(i) of fact;
(ii) in the tariff classification of a good or a material that is the subject of the
ruling;
(iii) in the application of a regional value-content requirement under Chapter IV
(Rules of Origin); or
(iv) in the application of the rules for determining whether a good that reenters its
territory after the good has been exported from its territory to the territory of
the other Party for repair or alteration qualifies for duty-free treatment under
Article III.6 (Goods Re-Entered after Repair or Alteration);
(b) if the ruling is not in accordance with an interpretation agreed upon by the Parties
regarding Chapter III (Nationa l Treatment and Market Access of Goods) or Chapter
IV (Rules of Origin);
(c) if there is a change in the material facts or circumstances on which the ruling is
based;
(d) to conform with a modification of Chapter III (National Treatment and Market
Access of Goods), Chapter IV (Rules of Origin), this Chapter or any UniformRegulations; or
(e) to conform with a judicial decision or a change in its domestic law.
7. Each Party shall provide that any modification or revocation of an advance ruling shall be
effective on the date on which the modification or revocation is issued, or on such later date as may be
specified therein, and shall not be applied to importa tions of a good that have occurred prior to that
date, unless the person to whom the advance ruling was issued has not acted in accordance with its
terms and conditions.
8. Notwithstanding paragraph 7, the issuing Party shall postpone the effective date of such
modification or revocation for a period not exceeding 90 days where the person to whom the advance
ruling was issued demonstrates that it has relied in good faith to its detriment on that ruling.
9. Each Party shall provide that where its custom s administration examines the regional value
content of a good for which it has issued an advance ruling pursuant to subparagraph 1(b), (c), (d) and(e), it shall evaluate whether:
(a) the exporter or producer has complied with the terms and conditions of the advance
ruling;WT/REG147/1
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(b) the exporter's or producer's operations are consistent with the material facts and
circumstances on which the advance ruling is based; and
(c) the supporting data and computations used in applying the basis or method for
calculating value or allocating cost were correct in all material respects.
10. Each Party shall provide that where its customs administration determines that any
requirement in paragraph 9 has not been satisfied, it may modify or revoke the advance ruling as the
circumstances may warrant.
11. Each Party shall provide that, where the person to whom an advance ruling was issued
demonstrates that it used reasonable care and acted in good faith in presenting the facts and
circumstances on which the ruling was based, and where the customs administration of a Party
determines that the ruling was based on incorrect information, the person to whom the ruling was
issued shall not be subject to penalties.
12. Each Party shall provide that where it issues an advance ruling to a person that has
misrepresented or omitted material facts or circumstances on which the ruling is based, or has failed
to act in accordance with the terms and conditions of the ruling, the Party may apply such measures as
may be warranted by the circumstances in accordance with its laws.
13. The Parties shall provide that an advance ruling will remain in effect and will be honoured if
there is no change in the material facts or circumstances on which it is based.
14. Each Party may provide that, where application for an advance ruling is made to its customs
administration that involves an issue that is the subject of:
(a) a verification of origin;
(b) a review by or appeal to the customs administration; or
(c) judicial or quasi-judicial review in its territory;
the customs administration may decline or postpone the issuance of the ruling.
Section IV - Review and Appeal of Advance Rulings and Origin Determinations
Article V.10
Review and Appeal
1. Each Party shall grant substantially the same rights of review and appeal of determinations of
origin and advance rulings issued by its customs administration as it provides to importers in itsterritory, to any person:
(a) who completes and signs a Certificate of Origin for a good that has been the subject
of a determination of origin; or
(b) who has received an advance ruling pursuant to Article V.9.1.WT/REG147/1
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2. Further to Articles XII.4 (Administrative Proceedings) and XII.5 (Review and Appeal), each
Party shall provide that the rights of review and appeal referred to in Paragraph 1 shall include access
to:
(a) at least one level of administrative review independent of the official or office
responsible for the determination under review; and
(b) in accordance with its domestic law, judicial or quasi-judicial review of the
determination or decision taken at the final level of administrative review.
Section V - Uniform Regulations
Article V.11
Uniform Regulations
1. The Parties shall establish, and implement, through their respective laws, regulations or
administrative policies, by the date of entry into fo rce of this Agreement, and at any time thereafter,
upon agreement of the Parties, Uniform Regulations regarding the interpretation, application and
administration of this Chapter and other matters as may be agreed by the Parties.
2. Each Party shall implement any modification of  or addition to the Uniform Regulations no
later than 180 days after the Parties agree on such modification or addition, or such other period as the
Parties may agree.
Section VI - Cooperation
Article V.12
Cooperation
1. Each Party shall notify the other Party of the following determinations, measures and rulings,
including, to the greatest extent practicable, those that are prospective in application:
(a) a determination of origin issued as the result of a verification conducted pursuant to
Article V.6.1;
(b) a determination of origin that the Party is aware is contrary to:
(i) a ruling issued by the customs administration of the other Party with respect
to the tariff classification or value of a good, or of materials used in the
production of a good, or the reasonable allocation of costs where calculatingthe net cost of a good, that is subject of a determination of origin; or
(ii) consistent treatment given by the customs administration of the other Party
with respect to the tariff classification or value of a good, or of materials used
in the production of a good, or the reasonable allocation of costs where
calculating the net cost of a good, that is the subject of a determination oforigin;
(c) a measure establishing or significantly modifying an administrative policy that is
likely to affect future determinations of origin; andWT/REG147/1
Page 86
(d) an advance ruling, or a ruling modifying or  revoking an advance ruling, pursuant to
Article V.9.
2. The Parties shall cooperate:
(a) in the enforcement of their respective customs-related laws or regulations
implementing this Agreement, and under an y customs mutual assistance agreement or
other customs-related agreement to which they are party;
(b) to the extent practicable and for purposes of facilitating the flow of trade between
them, in such customs-related matters as the collection and exchange of statistics
regarding the importation and exportation of goods, the harmonization of
documentation used in trade, the standardization of data elements, the acceptance of
an international data syntax a nd the exchange of information;
(c) to the extent practicable, in the harmonization of customs laboratories methods and
exchange of information and personnel between the customs laboratories; and
(d) to the extent practicable, in jointly organizing training programs on customs related
issues, which include training for the officials and users who participate directly in
customs procedures.
3. For purposes of this Article, the Parties shall enter into a Customs Mutual Assistance
Agreement between their customs administrations.
Article V.13
The Customs Sub-Committee
1. The Parties hereby establish a Customs Sub-Committee, comprising representatives of each
Party's customs administration. The Sub-Committee sh all meet as required and at any other time on
the request of either Party and shall:
(a) endeavour to agree on:
(i) the uniform interpretation, application and administration of Article III.4
(Temporary Admission of Goods), III .5 (Duty-Free Entry of Certain
Commercial Samples and Printed Advertising Materials) and III.6 (Goods
Re-Entered after Repair or Alteration), Chapter IV (Rules of Origin), this
Chapter, and any Uniform Regulations;
(ii) tariff classification and valuation matters relating to determinations of origin;
(iii) equivalent procedures and criteria for the request, approval, modification,
revocation and implementation of advance rulings;
(iv) revision to the Certificate of Origin;
(v) any other matter referred to it by a Party or the Committee on Trade in Goods
and Rules of Origin established under Article III.14.1 (Consultations and
Committee on Trade in Goods and Rules of Origin); and
(vi) any other customs-related matter arising under this Agreement;WT/REG147/1
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(b) consider:
(i) the harmonization of customs-related automation requirements and
documentation; and
(ii) proposed customs-related administrative or operational changes that may
affect the flow of trade between the Parties' territories;
(c) report periodically to the Committee on Trade in Goods and Rules of Origin and
notify it of any agreement reached under this paragraph; and
(d) refer to the Committee on Trade in Goods and Rules of Origin any matter on which it
has been unable to reach agreement within 60 days of referral of the matter to it
pursuant to subparagraph (a)(v).
2. Nothing in this Chapter shall be construed to prevent a Party from issuing a determination of
origin or an advance ruling relating to any matter under consideration by the Customs Sub-Committeeor from taking such other action as it considers necessary, pending a resolution of the matter under
this Agreement.
Article V.14
Definitions
For purposes of this Chapter:commercial importation  means the importation of a good into the territory of a Party for the
purpose of sale, or any commercial, industrial or other like use;
customs administration  means the competent authority that is responsible under the law of a
Party for the administration of customs laws and regulations;
determination of origin  means a determination as to whether a good qualifies as an
originating good in accordance with Chapter IV (Rules of Origin);
exporter in the territory of a Party  means an exporter located in the territory of a Party and
an exporter required under this Chapter to maintain  records in the territory of that Party regarding
exportations of a good;
identical goods  means goods that are the same in all respects, including physical
characteristics, quality and reputation, irrespective of minor differences in appearance that are not
relevant to a determination of origin of those goods under Chapter IV (Rules of Origin);
importer in the territory of a Party  means an importer located in the territory of a Party and
an importer required under this Chapter to maintain records in the territory of that Party regardingimportations of a good;
indirect material  means “indirect material” as defined in Article IV.15 (Definitions);
material  means "material" as defined in Article IV.15 (Definitions);
net cost of a good  means “net cost of a good” as defined in Article IV.15 (Definitions);WT/REG147/1
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preferential tariff treatment  means the duty rate applicable to an originating good;
producer  means "producer" as defined in Article IV.15 (Definitions);
production  means "production" as defined in Article IV.15 (Definitions);
transaction value  means “transaction value” as defined in Article IV.15 (Definitions);
Uniform Regulations  means "Uniform Regulations" established under Article V.11
(Uniform Regulations);
used  means "used" as defined in Article IV.15 (Definitions); and
value  means value of a good or material in accordance with the Customs Valuation
Agreement.
CHAPTER VI: EMERGENCY ACTION
Article VI.1
Article XIX of the GATT 1994 and the Agreement on Safeguards of the WTO.
Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the
Agreement on Safeguards  of the WTO Agreement and any successor agreements.
Article VI.2
Bilateral Actions
1. Subject to paragraphs 2 through 4, and during the transition period only, if a good originating
in the territory of a Party, as a result of the reduction or elimination of a duty provided for in this
Agreement, is being imported into the territory of the other Party in such increased quantities and
under such conditions that the imports of the good from that Party alone constitute a substantial causeof serious injury, or threat thereof, to a domestic industry producing a like or directly competitive
good, the Party into whose territory the good is being imported may, to the minimum extent necessary
to remedy or prevent the injury:
(a) suspend the further reduction of any rate of duty provided for under this Agreement
on the good;
(b) increase the rate of duty on the good to a level not to exceed the lesser of:
(i) the most-favoured-nation (MFN) applied rate of duty in effect at the time the
action is taken; and
(ii) the MFN applied rate of duty in effect on the day immediately preceding the
date of entry into force of this Agreement; or
(c) in the case of a duty applied to a good on a seasonal basis, increase the rate of duty to
a level not to exceed the MFN applied rate of duty that was in effect on the good for
the corresponding season immediately preceding the date of entry into force of this
Agreement.WT/REG147/1
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2. The following conditions and limitations shall apply to a proceeding that may result in
emergency action under paragraph 1:
(a) a Party shall, without delay, deliver to the other Party written notice of, and a request
for consultations regarding, the institution of a proceeding that could result in the
application of emergency action against a good originating in the territory of the otherParty;
(b) any such action shall be initiated no later than 1 year after the date of institution of the
proceeding;
(c) no action may be maintained:
(i) for a period exceeding 3 years; or
(ii) beyond the expiration of the transition period, except with the consent of the
Party against whose good the action is taken;
(d) during the transition period, the Parties may apply emergency actions to the same
good no more than 2 times;
(e) on the termination of a first action, the rate of duty shall be the rate that, according to
the Party's Schedule to Annex III.3.1 (Tariff Elimination) for the staged elimination
of the tariff, would have been in effect 1 year after the initiation of the action, andbeginning January 1 of the year following the termination of the action, at the option
of the Party that has taken the action:
(i) the rate of duty shall conform to the applicable rate set out in its Schedule to
Annex III.3.1 (Tariff Elimination); or
(ii) the tariff shall be eliminated in equal annual stages ending on the date set out
in its Schedule to Annex III.3.1 (Tariff El imination) for the elimination of the
tariff; and
(f) a safeguard action may be applied a second time for up to three years, provided:
(i) the period of time that has elapsed since the initial application of the measure
ended is equal to at least one half the initial period of application;
(ii) the rate of duty for the first year of the second action shall not be greater than
the rate that would be in effect in accordance with that Party's Schedule to
Annex III.3.1 (Tariff Elimination) at the time the first action was imposed;
and
(iii) the rate of duty applicable to any subsequent year shall be reduced in equal
steps such that the duty rate in the final year of the action is equivalent to the
rate provided for in that Party's Schedule to Annex III.3.1 (TariffElimination) for that year.
3. A Party may take a bilateral emergency action after the expiration of the transition period to
deal with cases of serious injury, or threat thereof, to a domestic industry arising from the operation of
this Agreement only with the consent of the other Party.WT/REG147/1
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4. The Party taking an action under this Article shall provide to the other Party mutually agreed
trade liberalizing compensation in the form of concessions having substantially equivalent trade
effects or equivalent to the value of the additional duties expected to result from the action. If the
Parties are unable to agree on compensation, the Party against whose good the action is taken may
take tariff action having trade effects substantially equivalent to the action taken under this Article.The Party taking the tariff action shall apply the action only for the minimum period necessary to
achieve the substantially equivalent effects.
5. This Article does not apply to emergency act ions respecting goods covered by Annex III.1
(Textile and Apparel Goods).
Article VI.3
Administration of Emerge ncy Action Proceedings
1. Each Party shall ensure the consistent, impartial and reasonable administration of its laws,
regulations, decisions and rulings governing all emergency action proceedings.
2. Each Party shall entrust determinations of seri ous injury, or threat thereof, in emergency
action proceedings to a competent investigating authority, subject to review by judicial oradministrative tribunals, to the extent provided by domestic law. Negative injury determinations shall
not be subject to modification, except by such  review. The competent investigating authority
empowered under domestic law to conduct such proceedings should be provided with the necessary
resources to enable it to fulfill its duties.
3. Each Party shall adopt or maintain equitable, timely, transparent and effective procedures for
emergency action proceedings, in accordance with the requirements set out in Annex VI.3
(Administration of Emergency Action Proceedings).
4. This Article does not apply to emergency actions taken under Annex III.1 (Textile and
Apparel Goods).
Article VI.4
Dispute Settlement in Emergency Action Matters
Neither Party may request the establishment of an arbitral panel under Article XIII.8
(Establishment of an Arbitral Panel) regarding any proposed emergency action.
Article VI.5
Definitions
For purposes of this Chapter:
competent investigating authority  means the "competent investigating authority" of a Party
as defined in Annex VI.5;
contribute importantly  means an important cause, but not necessarily the most important
cause;WT/REG147/1
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domestic industry  means the producers as a whole of the like or directly competitive good
operating in the territory of a Party or those whose collective output of the like or directly competitive
good constitutes a major proportion of the total domestic production of those goods;
emergency action  does not include any emergency action pursuant to a proceeding instituted
prior to the entry into force of this Agreement;
good originating in the territory of a Party  means an originating good;
serious injury  means a significant overall impairment of a domestic industry;
threat of serious injury  means serious injury that, on the basis of facts and not merely on
allegation, conjecture or remote possibility, is clearly imminent; and
transition period  means the 7 year period beginning on the entry into force of this
Agreement, except where, in the case of Costa Rica, the tariff elimination for the good against which
the action is taken occurs over a longer period of time, in which case the transition period shall be theperiod of the staged tariff elimination for that good.
ANNEX VI.3: ADMINISTRATION OF EMERGENCY ACTION PROCEEDINGS
Institution of a Proceeding
1. An emergency action proceeding may be instituted by a petition or complaint by entities
specified in domestic law. The entity filing the petition or complaint shall demonstrate that it is
representative of the domestic industry producing a good like or directly competitive with theimported good.
2. A Party may institute a proceeding on its own motion or request the competent investigating
authority to conduct a proceeding.
3. Except as provided in this Annex, the time periods applicable to these proceedings will be
those established by the domestic law of each Party.
Contents of a Petition or Complaint4. Where the basis for an investigation is a petition or complaint filed by an entity representative
of a domestic industry, the petitioning entity shall, in its petition or complaint, provide the following
information to the extent that such information is publicly available from governmental or other
sources, or best estimates and the basis therefor if such information is not available:
(a) product description: the name and description of the imported good concerned, the
tariff subheading under which that good is classified, its current tariff treatment and
the name and description of the like or directly competitive domestic good concerned;
(b) representativeness:
(i) the names and addresses of the entities filing the petition or complaint, and
the locations of the establishments in which they produce the domestic good;WT/REG147/1
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(ii) the percentage of domestic production of the like or directly competitive
good that such entities account for and the basis for claiming that they are
representative of an industry; and
(iii) the names and locations of all other domestic establishments in which the like
or directly competitive good is produced;
(c) import data: import data for each of the 5 most recent full years that form the basis of
the claim that the good concerned is being imported in increased quantities, either in
absolute terms or relative to domestic production as appropriate;
(d) domestic production data: data on total domestic production of the like or directly
competitive good for each of the 5 most recent full years;
(e) data showing injury: quantitative and objective data indicating the nature and extent
of injury to the concerned industry, such  as data showing changes in the level of
sales, prices, production, productivity, capacity utilisation, market share, profits and
losses, and employment;
(f) cause of injury: an enumeration and description of the alleged causes of the injury, or
threat thereof, and a summary of the basis for the assertion that increased imports,
either actual or relative to domestic production, of the imported good are causing orthreatening to cause serious injury, supported by pertinent data; and
(g) criteria for inclusion: quantitative and objective data indicating the share of imports
accounted for by imports from the territory of the other Party and the petitioner's
views on the extent to which such imports are contributing importantly to the serious
injury, or threat thereof, caused by imports of that good.
5. Petitions or complaints, except to the extent that they contain confidential business
information, shall promptly be made available for public inspection on being filed.
Notice Requirement
6. On instituting an emergency action proceeding, the competent investigating authority shall
publish notice of the institution of the proceeding in the official journal of the Party. The notice shall
identify the petitioner or other requester, the imported good that is the subject of the proceeding and
its tariff subheading, the nature and timing of the determination to be made, the time and place of the
public hearing, dates of deadlines for filing briefs, statements and other documents, the place at which
the petition and any other documents filed in the course of the proceeding may be inspected, and the
name, address and telephone number of the office to be contacted for more information.
7. With respect to an emergency action proceeding instituted on the basis of a petition or
complaint filed by an entity asserting that it is representative of the domestic industry, the competent
investigating authority shall not publish the notice required by paragraph 5 without first assessing
carefully that the petition or complaint meets the requirements of paragraph 3, including
representativeness.
Public Hearing
8. In the course of each proceeding, the competent investigating authority shall:WT/REG147/1
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(a) hold a public hearing, after providing reasonable notice, to allow all interested parties,
and any association whose purpose is to represent the interests of consumers in the
territory of the Party instituting the proceeding, to appear in person or by counsel, to
present evidence and to be heard on the questions of serious injury, or threat thereof,
and the appropriate remedy; and
(b) provide an opportunity to all interested parties and any such association appearing at
the hearing to cross-question interested parties making presentations at that hearing.
Confidential Information
9. The competent investigating authority shall adop t or maintain procedures for the treatment of
confidential information, protected under domestic law, that is provided in the course of a proceeding,
including a requirement that interested parties and consumer associations providing such informationfurnish nonconfidential written summaries thereof, or where they indicate that the information cannot
be summarized, the reasons why a summary cannot be provided.
Evidence of Injury and Causation
10. In conducting its proceeding the competent investigating authority shall gather, to the best of
its ability, all relevant information appropriate to the determination it must make. It shall evaluate all
relevant factors of an objective and quantifiable nature having a bearing on the situation of that
industry, including the rate and amount of the increase in imports of the good concerned, the share of
the domestic market taken by increased imports, and changes in the level of sales, production,
productivity, capacity utilisation, profits and losses, and employment. In making its determination, thecompetent investigating authority may also consider other economic factors, such as changes in prices
and inventories, and the ability of firms in the industry to generate capital.
11. The competent investigating authority shall not  make an affirmative injury determination
unless its investigation demonstrates, on the basis of objective evidence, the existence of a clear
causal link between increased imports of the good co ncerned and serious injury, or threat thereof.
Where factors other than increased imports are causing injury to the domestic industry at the same
time, such injury shall not be attributed to increased imports.
Deliberation and Report
12. The competent investigating authority, before making an affirmative determination in an
emergency action proceeding, shall allow sufficient time to gather and consider the relevant
information, hold a public hearing and provide an opportunity for all interested parties and consumerassociations to prepare and submit their views.
13. The competent investigating authority shall publish promptly a report, including a summary
thereof in the official journal of the Party, setting out its findings and reasoned conclusions on all
pertinent issues of law and fact. The report shall describe the imported good and its tariff item
number, the standard applied and the finding made. The statement of reasons shall set out the basis forthe determination, including a description of:
(a) the domestic industry seriously injured or threatened with serious injury;
(b) information supporting a finding that imports are increasing, the domestic industry is
seriously injured or threatened with serious injury, and increasing imports are causing
or threatening serious injury; andWT/REG147/1
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(c) if provided for by domestic law, any finding or recommendation regarding the
appropriate remedy and the basis therefor.
14. In its report, the competent investigating au thority shall not disclose any confidential
information provided pursuant to any undertaking concerning confidential information that may have
been made in the course of the proceedings.
ANNEX VI.5: COUNTRY-SPECIFIC DEFINITIONS
For purposes of this Chapter:
competent investigating authority  means:
(a) in the case of Canada, the Canadian International Trade Tribunal, or its successor;
and
(b) in the case of Costa Rica, such body as may be established under that country’s
legislation.
CHAPTER VII: ANTIDUMPING MEASURES
Article VII.1
Antidumping Measures
1. Except as otherwise provided in this Chapter, the WTO Agreement shall govern the rights and
obligations of the Parties in respect of the application of antidumping duties.
2. In the interest of promoting improvements to, and clarifications of, the relevant provisions of
the WTO Agreement the Parties recognise the desirability of:
(a) establishing a domestic process whereby the investigating authorities can consider, in
appropriate circumstances, broader issues of public interest, including the impact of
antidumping duties on other sectors of the domestic economy and on competition;
(b) providing for the possibility of imposing antidumping duties that are less than the full
margin of dumping in appropriate circumstances;
(c) having a transparent and predictable method for the imposition and collection of
antidumping duty that provides for the expeditious assessment of definitiveantidumping duties; and
(d) assessing the conditions of competition between the imported products and the
conditions of competition between the imported products and the like domestic
product pursuant to Article 3.3 of the WTO Agreement on the Interpretation of
Article VI of the General Agreement on Tariffs and Trade 1994 .
3. In the interest of ensuring procedural fairness and transparency in anti-dumping
investigations, the Parties reaffirm their full adherence to their obligations under the relevant
provisions of the WTO Agreement including in respect of:WT/REG147/1
Page 95
(a) notification to the government of the exporting country upon receipt of a properly
documented application for the initiation of an investigation;
(b) public notice and notification to all interested parties of the initiation of an
investigation;
(c) notification to all interested parties of the information required by the investigating
authorities in the investigation, and the provision of ample opportunity to present
evidence in respect of the investigation;
(d) making available the application for the init iation of an investigation to all interested
parties and the government of the exporting country upon the initiation of an
investigation;
(e) making available to interested parties all evidence submitted by other parties, subject
to the requirements to protect confidential information;
(f) the provision of a reasonable opportunity for interested parties to defend their
interests, including in the context of a public hearing, by presenting their views,
commenting on evidence and views of others, and offering rebuttal evidence and
arguments;
(g) the provision of a reasonable opportunity for interested parties to see all information
that is relevant to the presentation of their case, subject to the requirements to protect
information designated as confidential by the provider;
(h) the provision to interested parties of an explanation of the methodologies used in
determining the margin of dumping, and the provision of opportunities to comment
on the preliminary determination;
(i) procedures for the submission, treatment and protection of confidential information
submitted by parties, procedures to ensure  that confidential treatment is warranted
and procedures to ensure that adequate public summaries of confidential information
are available;
(j) public notice and notice to all interested parties of preliminary and final
determinations, which include sufficiently detailed explanations of the determinations
of dumping and injury including in respect of all relevant matters of fact and law;
(k) public notice and notice to interested parties of the imposition of any provisional or
final measures; and
(l) the provision of procedures for the judicial review of administrative actions relating
to final determinations and reviews of determinations.
4. In an investigation, each Party shall provide the other Party with information concerning the
point of contact in the investigatin g authority for that investigation.
5. All disputes between Parties arising in respect of the application of antidumping measures by
either Party shall be settled in accordance with the WTO Agreement.WT/REG147/1
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PART THREE: SERVICES AND INVESTMENT
CHAPTER VIII: SERVICES AND INVESTMENT
Article VIII.1
General Provisions
1. The Parties recognise the increasing importance of trade in services and investment in their
economies. In their efforts to gradually develop and broaden their relations, the Parties will co-operate
in the WTO and plurilateral fora, with the aim of creating the most favourable conditions for
achieving further liberalisation and additional mutual opening of markets for trade in services andinvestment.
2. With a view to developing and deepening their relations under this Agreement, the Parties
agree that within 3 years of the date of entry into force, they will review developments related to trade
in services and investment, and consider the need for further disciplines in these areas.
3. Upon request of either Party, the other Party shall endeavour to provide information on
measures that may have an impact on trade in services and investment.
Article VIII.2
Investment
The Parties note the existence of the Agreement between the Government of Canada and the
Government of Costa Rica for the Promotion and Protection of Investments , signed in San José, Costa
Rica, on March 18, 1998 (APPI).
Article VIII.3
Services
1. The Parties herein recognize the importance of their rights and obligations assumed in the
General Agreement on Trade in Services (GATS).
2. (a) The Parties to this Agreement shall encourage bodies responsible for the regulation of
professional services in their respective territories to:
(i) ensure that measures relating to the licensing or certification of nationals of
the other Party are based on objective and transparent criteria, such as
competence and the ability to provide a service; and
(ii) cooperate with the view to developing mutually acceptable standards and
criteria for licensing and certification of professional service providers.
(b) The following elements may be examined wi th regard to the standards and criteria
referred to in subparagraph (a)(ii):
(i) education - accreditation of schools or academic programs;
(ii) examinations - qualifying examinations for licensing, including alternative
methods of assessment such as oral examinations and interviews;WT/REG147/1
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(iii) experience - length and nature of experience required for licensing;
(iv) conduct and ethics - standards of professional conduct and the nature of
disciplinary action for non-conformity with those standards;
(v) professional development and re-certification - continuing education and
ongoing requirements to maintain professional certification;
(vi) scope of practice - extent of, or limitations on, permissible activities;
(vii) local knowledge - requirements for knowledge of such matters as local laws,
regulations, language, geography or climate; and
(viii) consumer protection - alternatives to residency requirements, including
bonding, professional liability insurance and client restitution funds, to
provide for the protection of consumers.
(c) These bodies should report on the result of their discussions related to the
development of mutually acceptable standards mentioned in subparagraph (a)(ii) and,
as appropriate, provide any recommendations to the Coordinators.
(d) With respect to the recognition of qualification and licensing requirements, the
Parties note the existence of rights and obligations with respect to each other under
Article VII of the GATS.
(e) For the purpose of this paragraph, professional services  means services, the
provision of which requires specialized post-secondary education, or equivalent
training or experience, and for which the right to practice is granted or restricted by a
Party, but does not include services provided by tradespersons or vessel and aircraft
crew members.
PART FOUR: TRADE FACILITATION
CHAPTER IX: TRADE FACILITATION AND ADDITIONAL PROVISIONS
Section I-Trade Facilitation
Article IX.1
Objectives and Principles
1. With the objectives of facilitating trade under this Agreement and cooperating in pursuing
trade facilitation initiatives on a multilateral and hemispheric basis, Canada and Costa Rica agree to
administer their import and export processes for goods traded under this Agreement on the basis that:
(a) procedures be efficient to reduce costs for importers and exporters and simplified
where appropriate to achieve such efficiencies;
(b) procedures be based on any international trade instruments or standards to which the
Parties have agreed;
(c) entry procedures be transparent to ensure predictability for importers and exporters;WT/REG147/1
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(d) measures to facilitate trade also support mechanisms to protect persons through
effective enforcement of and compliance with national requirements;
(e) the personnel and procedures involved in those processes reflect high standards of
integrity;
(f) the development of significant modifications to procedures of a Party include, in
advance of implementation, consultations with the representatives of the trading
community of that Party;
(g) procedures be based on risk assessment principles to focus compliance efforts on
transactions that merit attention, thereby promoting effective use of resources and
providing incentives for voluntary compliance with the obligations to importers and
exporters; and
(h) the Parties encourage cooperation, technical assistance and the exchange of
information, including information on best practices, for the purpose of promoting the
application of and compliance with the trade facilitation measures agreed upon under
this Agreement.
Article IX.2
Specific Obligations
1. The Parties confirm their rights and obligations under Article VIII (Fees and Formalities
Connected with Importation and Exportation) and Ar ticle X (Publication and Administration of Trade
Regulations) of the GATT 1994 and any successor agreements.
2. The Parties shall release goods promptly, particularly those which are unrestricted or
uncontrolled. Subject to Article IX.2.3, they shall provide a basic option of:
(a) releasing the goods at the time of entry based on the submission of only the
documentation required before the goods arrive or at the time of arrival. This shall not
prevent customs from requiring the submission of more extensive documentationthrough post-entry accounting and verifications, as appropriate; or
(b) releasing the goods based on the submission, before or at the time of arrival of the
goods, of all the information necessary to obtain a final accounting of the goods.
3. The Parties recognize that, for certain goods or under certain circumstances, such as goods
subject to quota or to health-related or public safety requirements, releasing the goods may require the
submission of more extensive information, before or at the time of arrival of the goods, to allow the
authorities to examine the goods for release.
4. The Parties shall facilitate and simplify the process and procedures for the release of low-risk
merchandise, and shall improve controls on the release of high-risk merchandise. For these purposes,
the Parties shall base their examination and release procedures and their post-entry verification
procedures on risk assessment principles, rather than examining each and every shipment offered for
entry in a comprehensive manner for compliance with  all import requirements. This shall not preclude
the Parties from conducting quality control and compliance reviews which may require more
extensive examinations.WT/REG147/1
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5. The Parties shall ensure that the procedures and activities of various agencies whose
requirements on the import or export of goods are maintained, either by themselves or on their behalf
by customs, are coordinated to facilitate trade. In this connection, each Party shall take steps to
harmonize the data requirements of such agencies with the objective of allowing importers and
exporters to present all required data to only one border agency.
6. In their procedures for the clearance of express consignments, the Parties shall apply the
World Customs Organization Principles on Express Consignment .
7. The Parties shall introduce or maintain simplified clearance procedures for the entry of goods
which are low in value and for which the revenue associated with such imports is not considered
significant by the Party maintaining such expedited procedures.
8. The Parties shall work to achieve common processes and simplification of the information
necessary for the release of goods, applying, when appropriate, existing international standards. Withthis objective, the Parties shall establish a m eans of providing for the electronic exchange of
information between customs administrations and the trading community for the purpose of
encouraging rapid release procedures. For purposes of this Article, the Parties shall use formats based
on international standards for the electronic exchange of information, and shall also take into account
the World Customs Organization Recommendations "Concerning the Use of UN/EDIFACT Rules for
Electronic Data Interchange" and "Concerning the Use of Codes for the Representation of Data
Elements". This shall not preclude the use of additional electronic data transmission standards.
9. The Parties, through their customs administrations, shall establish formal consultation
mechanisms with their trade and business communities to promote greater cooperation and the
exchange of electronic information.
10. The Parties shall issue written rulings in advance of an importation in response to a written
request by an importer, exporter or its representative. Rulings shall be issued for tariff classification,
applicable rate of duty, any tax applicable upon importation, or whether goods are considered to be
originating goods and entitled to tariff preferences under this Agreement. The rulings shall be as
detailed as the nature of the request and the details provided by the person requesting the rulingpermits. When a Party determines that a request fo r an advance ruling is incomplete, it may request
additional information, including, where appropriate, a sample of the goods or materials in question
from the person requesting the ruling. The advance ruling shall be binding upon the customs
administration that issued the ruling at the time the goods are actually imported provided that the facts
and circumstances that were the basis for the issu ance of the advance ruling remain in effect. The
customs administration of a Party may modify or revoke such a ruling at any time but only after
notification to the person that requested the ruling and without retroactive application. The Partiesmay modify or revoke such rulings without notification and with retroactive application in
circumstances where inaccurate or false information has been provided.
11. The Parties shall ensure that any administrative action or official decision taken in respect of
the import or export of goods is reviewable promptly by judicial, arbitral or administrative tribunals or
procedures, independent of the authority issuing the decision, which has the competence to maintain,modify or reverse the determination, in accordance with the law of each Party. The Parties shall
provide for an administrative level of appeal or review, independent of the official or, where
applicable, the office responsible for the original action or decision, before requiring a person to seek
redress at a more formal or judicial level.
12. The Parties shall promptly publish or otherwise make available, including through electronic
means, all their laws, regulations, judicial decisions and administrative rulings or policies of general
application relating to their requirements for imported or exported goods. They shall also makeWT/REG147/1
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available notices of an administrative nature, such as general agency requirements and entry
procedures, hours of operation and points of contacts for information enquiries.
13. Each Party shall, in accordance with their laws , treat as strictly confidential all business
information that is by its nature confidential or that is provided on a confidential basis.
Article IX.3
Cooperation
1. The Parties recognize that technical cooperation is fundamental to facilitating compliance
with the obligations set forth in this Agreement and for reaching a better degree of trade facilitation.
2. The Parties, through their customs administrations, agree to develop a technical cooperation
program under such mutually agreed terms as the scope, timing and cost of cooperative measures, incustoms-related areas such as, inter alia :
(a) training;
(b) risk assessment;
(c) prevention and detection of contraband and illegal activities, in collaboration with
other authorities;
(d) implementation of the Customs Valuation Agreement;
(e) audit and verification frameworks;
(f) customs laboratories; and
(g) electronic exchange of information.
3. The Parties shall cooperate in the development of effective mechanisms for communicating
with the trade and business communities.
Article IX.4
Future Work Program
1. With the objective of developing further steps to facilitate trade under this Agreement, the
Parties establish the following work program:
(a) to develop the Cooperation Program referred to in Article IX.3 for the purpose of
facilitating compliance with the obligations set forth in this Agreement; and
(b) as appropriate, to identify and submit for the consideration of the Commission new
measures aimed at facilitating trade between the Parties, taking as a basis the
objectives and principles set forth in Article IX.1 of this Chapter, including, inter
alia:
(i) common processes;
(ii) general measures to facilitate trade;WT/REG147/1
Page 101
(iii) official controls;
(iv) transportation;
(v) the promotion and use of standards;
(vi) the use of automated systems and Electronic Data Interchange (EDI);
(vii) the availability of information;
(viii) customs and other official procedures concerning the means of transportation
and transportation equipment, including containers;
(ix) official requirements for imported goods;
(x) simplification of the information necessary for the release of goods;
(xi) customs clearance of exports;
(xii) transshipment of goods;
(xiii) goods in international transit;
(xiv) commercial trade practices; and
(xv) payment procedures.
2. The Parties may periodically review the work program referred to in this Article for the
purpose of agreeing upon new cooperation actions that might be needed to promote application of the
trade facilitation obligations and principles, including new measures that might be agreed upon by theParties.
3. Through the Parties' respective customs administrations and other border-related authorities as
appropriate, the Parties will review relevant international initiatives on trade facilitation, including the
Compendium of Trade Facilitation Recommendations , developed by the United Nations Conference
on Trade and Development and the United Nations  Economic Commission for Europe, to identify
areas where further joint action would facilitate trade between the Parties and promote shared
multilateral objectives.
Section II-Additional Provisions
Article IX.5
Sanitary and Phytosanitary Measures
1. The Parties reaffirm their rights and obligations under the WTO Agreement on the Application
of Sanitary and Phytosanitary Measures .
2. The Parties agree to use the WTO dispute settlement procedures for any formal disputes
regarding sanitary and phytosanitary (SPS) measures.
3. Recognizing the benefits from a bilateral program of technical and institutional cooperation, a
Committee on Sanitary and Phytosanitary Measures, comprising representatives of each Party whoWT/REG147/1
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have responsibilities for sanitary and phytosanitary matters, is hereby established. This Committee
would provide a regular forum for consultations and co-operation to:
(a) enhance the effectiveness of Parties’ regulations in this area in a manner which is
fully consistent with, and supportive of, relevant WTO rights and obligations, with a
view to improving food safety and sanitary and phytosanitary conditions; and
(b) facilitate discussions on bilateral issues with a view to avoiding disputes between
Parties.
4. The Committee may consider the following:
(a) the design, implementation and review of technical and institutional cooperation
programs;
(b) the development of operational guidelines to facilitate implementation of, inter alia ,
mutual recognition and equivalence agreements, and product control, inspection andapproval procedures;
(c) the promotion of enhanced transparency of SPS measures;
(d) the identification and resolution of SPS-related problems;
(e) the recognition of pest- or disease-free areas; and
(f) the promotion of bilateral consultation on sanitary and phytosanitary issues under
discussion in multilateral and international fora.
5. The Committee will meet as required, normally on an annual basis, and report on its activities
and work plans to the Coordinators.
Article IX.6
Standards including Metrology
1. The Parties affirm their rights and obligations under the WTO Agreement on Technical
Barriers to Trade  (TBT Agreement), part of Annex 1A of the WTO Agreement.
2. The Parties shall use the relevant dispute settlement provisions of the WTO Agreement for
any formal disputes related to their rights and obligations under the WTO TBT Agreement.
3. The Parties shall develop programs for technical cooperation aimed at achieving full and
effective compliance with the obligations set fort h in the WTO TBT Agreement. To this end, the
Parties shall encourage their competent authorities in  the area of standards, including metrology, to
undertake the following activities for the purpose of strengthening processes and systems in this field:
(a) the promotion of bilateral institutional and regulatory information exchange and
technical cooperation; and
(b) the promotion of bilateral coordination by appropriate agencies in multilateral and
international fora on standards, including metrology.WT/REG147/1
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4. The Parties shall include bilateral cooperation and coordination issues related to standards,
including metrology, on the agenda of the Coordinators on a regular basis.
Article IX.7
Government Procurement
1. The Parties agree to cooperate with the aim of achieving further liberalisation of public
procurement markets and greater transparency in public procurement.
2. The Parties recognize that technical cooperation can contribute to achieving these aims and
agree to cooperate in exploring potential approaches to such technical cooperation through existing
mechanisms, particularly with respect to the application of information technology to government
procurement.
3. The Parties shall, within 3 years after the entry into force of this Agreement, meet to review
this Article.
CHAPTER X: TEMPORARY ENTRY
Article X.1
Temporary Entry
1. The Parties recognize that there is a growing importance of investment and services related to
trade in goods. In accordance with their applicable laws and regulations, they shall facilitate the
temporary entry of:
(a) nationals who are intra-company transferees (managers, executives, specialists) and
business visitors;
(b) nationals who are providing after-sales services directly related to the exportation of
goods by an exporter of that same Party into the territory of the other Party; or
(c) spouses or common-law partners and children of nationals described in (a) above.
2. With a view to developing and deepening their relations under this Agreement, the Parties
agree that within 3 years of the date of entry into force, they will review developments related to
temporary entry, and consider the need for further disciplines in this area.
3. No later than 1 year after the date of entry into force of this Agreement, the Parties shall make
available explanatory material regarding the requirements for temporary entry under this Article insuch a manner as to enable citizens of the other Party to become acquainted with them.
4. For the purposes of this Chapter:
after-sales services  include those provided by persons repairing and servicing, supervising
installers, and setting up and testing commercial or industrial (including computer software)
equipment, provided the services are being performed as part of an original or extended sales or lease
agreement, warranty, or service contract. "Setting up" does not include hands-on installation generally
performed by construction or building trades. After-sales services also includes persons providing
familiarisation or training sessions to potential users;WT/REG147/1
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business visitors  are short-term visitors who do not intend to enter the labour market of the
Parties, but seek entry to engage in activities such as buying or selling of goods or services,
negotiating contracts, conferring with colleagues, or attending conferences;
national  means a natural person who is a citizen of a Party; and
temporary entry  means the right to enter and remain for the period authorized.
PART FIVE: COMPETITION POLICY
CHAPTER XI: COMPETITION POLICY
Article XI .1
Purpose
The purposes of this Chapter are to ensure that the benefits of trade liberalization are not
undermined by anticompetitive activities and to pr omote cooperation and coordination between the
competition authorities of the Parties.
Article XI .2
General Principles
1. Each Party shall adopt or maintain measures to proscribe anticompetitive activities and shall
take appropriate enforcement action pursuant to those measures, recognizing that such measures will
enhance the fulfilment of the objectives of this Agreement.
2. Each Party shall ensure that the measures referred to in paragraph 1, and the enforcement
actions pursuant to those measures, are applicable on a non-discriminatory basis.
3. For the purpose of this Chapter, anticompetitive activities include, but are not limited to, the
following:
(a) anticompetitive agreements, anticompetitive concerted practices or anticompetitive
arrangements by competitors to fix prices, make rigged bids (collusive tenders),
establish output restrictions or quotas, or share or divide markets by allocating
customers, suppliers, territories or lines of commerce;
(b) anticompetitive practices by an enterprise or group of enterprises that has market
power in a relevant market or group of markets; and
(c) mergers or acquisitions with substantial anticompetitive effects;
unless such activities are excluded, directly or indirectly, from the coverage of a Party’s own laws or
authorized in accordance with those laws. All such exclusions and authorizations shall be transparent
and should be periodically assessed by each Party to determine whether they are necessary to achieve
their overriding policy objectives.
4. Each Party shall ensure that:WT/REG147/1
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(a) the measures it adopts or maintains to proscribe anticompetitive activities, which
implement the obligations set out in this Chapter, whether occurring before or after
the coming into force of the Agreement, are published or otherwise publicly
available; and
(b) any modifications to any such measures occu rring after the coming into force of this
Agreement are notified to the other Party within 60 days, with advance notification to
be provided where possible.
5. Each Party shall establish or maintain an impartial competition authority that is:
(a) authorized to advocate pro-competitive solutions in the design, development and
implementation of government policy and legislation; and
(b) independent from political interference in carrying out enforcement actions and
advocacy activities.
6. Each Party shall ensure that its judicial and quasi-judicial proceedings to address
anticompetitive activities are fair and equitable, and that in such proceedings, persons that are directly
affected:
(a) are provided with written notice when a proceeding is initiated;
(b) are afforded an opportunity, prior to any final action in the proceeding, to have access
to relevant information, to be represented, to make submissions, including any
comments on the submissions of other persons, and to identify and protect
confidential information; and
(c) are provided with a written decision on the merits of the case.
7. Each Party shall ensure that, where there are any judicial or quasi-judicial proceedings to
address anticompetitive activities, an independent domestic judicial or quasi-judicial appeal or review
process is available to persons subject to any final decision arising out of those proceedings.
Article XI .3
Cooperation
1. The Parties recognize the importance of cooperation and coordination of enforcement actions
including notification, consultation and exchange of information.
2. Subject to Article XI.4, and unless providing notice would harm its important interests, each
Party shall notify the other Party with respect to its enforcement actions that may affect that other
Party’s important interests, and shall give full and sympathetic consideration to possible ways of
fulfilling its enforcement needs without harming those interests.
3. For the purpose of this Chapter, enforcement actions that may affect the important interests of
the other Party and therefore will ordinarily require notification include those that:
(a) are relevant to enforcement actions of the other Party;WT/REG147/1
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(b) involve anticompetitive activities, other than mergers or acquisitions, carried out in
whole or in part in the territory of the other Party and that may be significant for that
Party;
(c) involve mergers or acquisitions in which one or more of the enterprises involved in
the transaction, or an enterprise controlling one or more of the enterprises to thetransaction, is incorporated or organized un der the laws of the other Party or one of
its provinces;
(d) involve remedies that expressly require or prohibit conduct in the territory of the
other Party or are otherwise directed at conduct in that territory; or
(e) involve the seeking of information located in the territory of the other Party, whether
by personal visit by officials of a Party or otherwise, except with respect to telephone
contacts with a person in the territory of the other Party where that person is not thesubject of enforcement action and the contact seeks only an oral response on a
voluntary basis.
4. Notification will ordinarily be given as soon as the competition authority of a Party becomes
aware that the notifiable circumstances pursuant to paragraphs 2 and 3 are present.
5. In accordance with their laws, the Parties may enter into additional cooperation and mutual
legal assistance agreements, arrangements, or both in order to further the objectives of this Chapter.
Article XI .4
Confidentiality
Nothing in this Chapter shall require the provision of information by a Party or its
competition authority contrary to its laws. The Parties shall, to the fullest extent possible, maintain the
confidentiality of any information communicated to it in confidence by the other Party. Any
information communicated shall only be used for the purpose of the enforcement action for which it
was communicated.
Article XI .5
Technical Assistance
In order to achieve the objectives of this Chap ter, the Parties agree that it is in their common
interest to work together in technical assistance initiatives related to competition policy, measures toproscribe anticompetitive activities and enforcement actions.
Article XI .6
Consultations
1. The Parties shall consult either at least once every two years, or pursuant to Article XIII.4
(Cooperation) on the written request of a Party, to consider matters regarding the operation,
implementation, application or interpretation of this  Chapter and to review the Parties’ measures to
proscribe anticompetitive activities and the effectiveness of enforcement actions. Each Party shalldesignate one or more officials, including an official from each competition authority, to be
responsible for ensuring that consultations, when required, occur in a timely manner.WT/REG147/1
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2. If the Parties do not arrive at a mutually satisfactory resolution of a matter arising from the
written request of a Party made under paragraph 1, they shall refer the matter to the Commission for
consideration under Article XIII.1.2( c) (The Free Trade Commission).
3. Except as provided in paragraph 1, neither Party may have recourse to dispute settlement
under this Agreement or to any kind of arbitration for any matter arising under this Chapter.
Article XI .7
Definitions
For purposes of this Chapter, these terms shall have the following definitions:anticompetitive activities  means any conduct or transaction that may be subject to penalties
or other relief under:
(a) for Canada, the Competition Act , R.S.C. 1985, c. C-34;
(b) for Costa Rica the "Ley de Promoción de la Competencia y Defensa Efectiva del
Consumidor" (Act for the Promotion of Competition and Effective Defense of theConsumer) Act No.7472 of 20 December 1994;
as well as any amendments thereto, and such other laws or regulations as the Parties may jointly agree
to be applicable for purpose of this Chapter.
competition authority(ies)  means:
(a) for Canada, the Commissioner of Competition.
(b) for Costa Rica, the “Comisión para promover la competencia” (Commission for the
Promotion of Competition) established under the Act No.7472 of 20 December 1994,
or its successor.
enforcement action(s) means any application of measures referred to in paragraph 1 of
Article XI .2 by way of investigation or proceeding.
measures  means laws, regulations, procedures, practices or administrative rulings of general
application.
PART SIX: ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS
CHAPTER XII: PUBLICATION, NOTIFICATION AND ADMINISTRATION OF LAWS
Article XII.1
Contact Points
Each Party shall designate, within 60 days of the entry into force of the Agreement, a contact
point to facilitate communications between the Parties on any matter covered by this Agreement. Onthe request of the other Party, the contact point shall identify the office or official responsible for the
matter and assist, as necessary, in facilitating communication with the requesting Party.WT/REG147/1
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Article XII.2
Publication
1. Each Party shall ensure that its laws, regulations, procedures and administrative rulings of
general application respecting any matter covered by this Agreement are promptly published or
otherwise made available in such a manner as to enable interested persons and the other Party to
become acquainted with them.
2. To the extent possible, each Party shall:
(a) publish in advance any such measure that it proposes to adopt; and
(b) provide interested persons and the other Party a reasonable opportunity to comment
on such proposed measures.
Article XII.3
Notification and Provision of Information
1. To the maximum extent possible, each Party shall notify the other Party of any proposed or
actual measure that the Party considers might materially affect the operation of this Agreement or
otherwise substantially affect the other Party's interests under this Agreement.
2. On request of the other Party, a Party shall promptly provide information and respond to
questions pertaining to any actual or proposed measure, whether or not the other Party has been
previously notified of that measure.
3. Any notification or information provided under this Article shall be without prejudice as to
whether the measure is consistent with this Agreement.
Article XII.4
Administrative Proceedings
With a view to administering in a consistent, impartial and reasonable manner all measures of
general application affecting matters covered by this  Agreement, each Party shall ensure that in its
administrative proceedings applying measures referred to in Article XII.2 to particular persons, goods
or services of the other Party in specific cases:
(a) wherever possible, persons of the other Party that are directly affected by a
proceeding are provided reasonable notice, in accordance with domestic procedures,
when a proceeding is initiated, including a description of the nature of the proceeding,
a statement of the legal authority under which the proceeding is initiated and a
general description of any issues in controversy;
(b) such persons are afforded a reasonable opportunity to present facts and arguments in
support of their positions prior to any final administrative action, when permitted by
time, the nature of the proceeding, and the public interest; and
(c) its procedures are in accordance with domestic law.WT/REG147/1
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Article XII.5
Review and Appeal
1. Each Party shall establish or maintain judicial, quasi-judicial or administrative tribunals or
procedures for the purpose of the prompt review and, where warranted, correction of final
administrative actions regarding matters covered by this Agreement. Such tribunals shall be impartial
and independent of the office or authority entrusted with administrative enforcement and shall not
have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribun als or procedures, the parties to the proceeding
are provided with the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions of record or, where required by
domestic law, the record compiled by the administrative authority.
3. Each Party shall ensure, subject to appeal or further review as provided in its domestic law,
that such decisions shall be implemented by, and shall govern the practice of, the offices or authorities
with respect to the administrative action at issue.
Article XII.6
Definitions
For purposes of this Chapter:administrative ruling of general application  means an administrative ruling or
interpretation that applies to all persons and fact situations that fall generally within its ambit and that
establishes a norm of conduct but does not include:
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that
applies to a particular person, good or service of the other Party in a specific case; or
(b) a ruling that adjudicates with respect to a particular act or practice.
CHAPTER XIII: INSTITUTIONAL ARRANGEMENTS AND
DISPUTE SETTLEMENT PROCEDURES
Section I - Institutions
Article XIII.1
The Free Trade Commission
1. The Parties hereby establish the Free Trade Commission, comprising cabinet-level
representatives of the Parties or their designees.
2. The Commission shall:
(a) supervise the implementation of this Agreement;WT/REG147/1
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(b) oversee its further elaboration; and
(c) consider any other matter that may affect the operation of this Agreement.
3. The Commission may:
(a) adopt binding interpretations of this Agreement;
(b) seek the advice of non-governmental persons or groups;
(c) take such other action in the exercise of its functions as the Parties may agree; and
(d) modify in fulfilment of the objectives of this Agreement:
(i) the schedule of a Party contained in Annex III.3.2 (Tariff Elimination), with
the purpose of adding one or more goods excluded in the Tariff Elimination
Schedule;
(ii) the phase-out periods established in Annex III.3.2 (Tariff Elimination), with
the purpose of accelerating the tariff reduction;
(iii) the rules of origin established in Annex III.1 (Textiles and Apparel Goods)
and Annex IV.1 (Specific Rules of Origin);
(iv) the Uniform Regulations on Customs Procedures.
4. The modification referred to in paragraph 3(d) will be implemented by the Parties in
conformity with Annex XIII.1.4 (Implementati on of the Modifications Approved by the
Commission).
5. The Commission may establish committees, subcommittees or working groups taking into
consideration any recommendation of the Coordinators. Except where specifically provided for in this
Agreement, the committees, subcommittees and working groups shall work under a mandate
recommended by the Coordinators and approved by the Commission.
6. The Commission will establish its rules and procedures. All decisions of the Commission
shall be taken by mutual agreement.
7. The Commission shall normally convene once a year in regular session. Regular sessions of
the Commission shall be chaired alternately by each Party.
Article XIII.2
The Free Trade Coordinators
1. Each Party shall appoint a Free Trade Coordinator.
2. The Free Trade Coordinators shall:
(a) supervise the work of all committee, subcommittees and working groups established
under this Agreement;WT/REG147/1
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(b) recommend to the Commission the establishment of such committees, subcommittees
and working groups as they consider necessary to assist the Commission;
(c) follow up with any decisions taken by the Commission, as appropriate;
(d) receive notifications pursuant to this Agreement; and
(e) consider any other matter that may affect the operation of this Agreement as
mandated by the Commission.
3. The Coordinators shall meet as often as required.
4. Each Party may request in writing at any time that a special meeting of the Coordinators be
held. Such a meeting shall take place within 30 days of receipt of the request.
Article XIII.3
The Secretariat
1. The Commission shall establish and oversee a Secretariat comprising national Sections.
2. Each Party shall:
(a) establish a permanent office of its Section;
(b) be responsible for:
(i) the operation and costs of its Section; and
(ii) the remuneration and payment of expenses of panelists and members of
committees, subcommittees and working groups established under this
Agreement, as set out in Annex XIII.3.2 (Remuneration and Payment of
Expenses);
(c) designate an individual to serve as Secretary for its Section, who shall be responsible
for its administration and management; and
(d) notify the Commission of the location of its Section's office.
3. The Secretariat shall:
(a) provide administrative assistance to panels established under this Chapter, in
accordance with procedures established pursuant to Article XIII.12; and
(b) as the Commission may direct:
(i) support the work of other committees, subcommittees and working groups
established under this Agreement; and
(ii) otherwise facilitate the operation of this Agreement.WT/REG147/1
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Section II - Dispute Settlement
Article XIII.4
Cooperation
The Parties shall at all times endeavour to agree on the interpretation and application of this
Agreement, and shall make every attempt through cooperation and consultations to arrive at a
mutually satisfactory resolution of any matter that might affect its operation.
Article XIII.5
Recourse to Dispute Settlement Procedures
Except as otherwise provided in this Agreement, the dispute settlement provisions of this
Chapter shall apply with respect to the avoidance or settlement of all disputes between the Parties
regarding the interpretation or application of this Agreement or wherever a Party considers that anactual or proposed measure of the other Party is or would be inconsistent with the obligations of this
Agreement or cause nullification or impairment in the sense of Annex XIII.5 (Nullification and
Impairment).
Article XIII.6
WTO Dispute Settlement
1. Subject to paragraph 2, Article VI.4 (Dispute Settlement in Emergency Action Matters),
Article VII.1.5 (Antidumping Measures), Article IX.5.1.2 (Sanitary and Phytosanitary Measures) andArticle XI.6.3 (Consultations), disputes regarding any matter arising under both this Agreement and
the WTO Agreement, any agreement negotiated thereunder, or any successor agreement, may be
settled in either forum at the discretion of the complaining Party.
2. In any dispute referred to in paragraph 1 where the Party complained against claims that its
action is subject to Article I.4 (Relation to Envi ronmental and Conservation Agreements) and requests
in writing that the matter be considered under this  Agreement, the complaining Party may, in respect
of that matter, thereafter have recourse to dispute settlement procedures solely under this Agreement.
3. The Party complained against shall deliver a copy of a request made pursuant to paragraph 2
to its Section of the Secretariat and the other Party. Where the complaining Party has initiated dispute
settlement proceedings regarding any matter subject to paragraph 2, the Party complained against
shall deliver its request no later than 15 days thereafter. On receipt of such request, the complaining
Party shall promptly withdraw from participati on in those proceedings and may initiate dispute
settlement procedures under Article XIII.8.
4. Once dispute settlement procedures have been initiated under Article XIII.8 or dispute
settlement proceedings have been initiated under the WTO Agreement, the forum selected shall be
used to the exclusion of the other unless a Party makes a request pursuant to paragraph 2.
5. For purposes of this Article, dispute settlement proceedings under the WTO Agreement are
deemed to be initiated by a Party's request for a panel, such as under Article 6 of the DSU.WT/REG147/1
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Article XIII.7
Consultations
1. A Party may request in writing consultations with the other Party regarding any actual or
proposed measure or any other matter that it considers might affect the operation of this Agreement.
2. The requesting Party shall deliver the request to its Section of the Secretariat and the other
Party.
3. In cases of urgency, including those which concern perishable goods, consultations shall
commence within 15 days of the date of delivery of the request.
4. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of any
matter through consultations under this Article or other consultative provisions of this Agreement. Tothis end, the Parties shall:
(a) provide sufficient information to enable a full examination of how the actual or
proposed measure or other matter might affect the operation of this Agreement; and
(b) treat any confidential or proprietary information exchanged in the course of
consultations on the same basis as the Party providing the information.
Article XIII.8
Establishment of an Arbitral Panel
1. Unless the Parties agree to have recourse to alternative methods of dispute resolution, such as,
for example, good offices, conciliation or mediation, the Parties agree to establish an arbitral panel to
examine any matter they fail to resolve through consultations pursuant to Article XIII.7.
2. The complaining Party may request in writing th e establishment of an arbitral panel if the
Parties fail to resolve a matter pursuant to Article XIII.7 within:
(a) 30 days after the delivery date of the request for consultations; or
(b) 15 days after the delivery date of the request for consultations for matters referred to
in paragraph 3 of Article XIII.7.
3. The complaining Party shall state in the request the measure or other matter complained of
and indicate the provisions of this Agreement that it considers relevant, and shall deliver the request to
its Section of the Secretariat and to the other Party.
4. The Parties may consolidate two or more proceedings regarding other matters that they
determine are appropriate to be considered jointly.
5. The arbitral panel shall be deemed established, by consent of both Parties, on the date the
request for the establishment of the arbitral panel is delivered to the Party complained against.
6. Unless otherwise agreed by the Parties, the arbitral panel shall be established and perform its
functions in a manner consistent with the provisions of this Chapter.WT/REG147/1
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Article XIII.9
Roster
1. No later than 3 months after the entry into for ce of the Agreement, the Parties shall establish
and maintain a roster of up to 20 individuals, at least 5 of whom must not be citizens of either of the
Parties, who are willing and able to serve as panelists. The roster members shall be appointed by
agreement of the Parties for terms of 3 years. Unless either of the Parties disagrees, a roster member
shall be considered reappointed for a further period of three years.
2. Roster members shall:
(a) have expertise or experience in law, international trade, other matters covered by this
Agreement, or the resolution of disputes arising under international trade agreementsand shall be chosen strictly on the basis of objectivity, reliability and sound judgment;
(b) be independent of, and not be affiliated with or take instructions from, any Party; and
(c) comply with a code of conduct to be established by the Commission.
Article XIII.10
Qualifications of Panelists
1. All panelists shall meet the qualifications set out in Article XIII.9.2.
2. Individuals who might have been involved in any of the possible alternative dispute
settlement proceedings referred to in Article XIII.8.1 may not serve as members of an arbitral panelon the same dispute.
Article XIII.11
Panel Selection
1. The following procedures shall apply to panel selection:
(a) the panel shall comprise 3 members;
(b) the Parties shall endeavour to agree on the chair and on the other 2 panelists within 15
days of the delivery of the request for the establishment of the panel. If the Parties are
unable to agree on the chair within this period, within 5 days the Party chosen by lot
shall select an individual as chair who must not be citizen of the Parties;
(c) within 15 days of selection of the chair, each Party shall select a panellist who must
not be a citizen of that Party; and
(d) if a Party fails to select its panellist within such period, the Parties shall choose by lot
the panellist from among the roster members who are not citizens of that Party.
2. Panelists shall normally be selected from the roster. A Party may exercise a peremptory
challenge against any individual not on the roster who is proposed as a panellist by the other Partywithin 15 days after the individual has been proposed.WT/REG147/1
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3. If a Party believes that a panellist is in violation of the code of conduct, the Parties shall
consult and if they agree, the panellist shall be removed and a new panellist shall be selected in
accordance with this Article.
Article XIII.12
Rules of Procedure
1. The Commission shall establish, by the date of entry into force of this Agreement, Model
Rules of Procedure, in accordance with the following principles:
(a) the procedures shall assure a right to at least one hearing before the panel as well as
the opportunity to provide initial and rebuttal written submissions; and
(b) the panel's hearings, deliberations and initial report, and all written submissions to
and communications with the panel shall be confidential.
2. The Commission may amend from time to time the Model Rules of Procedure referred to in
paragraph 1.
3. Unless the Parties otherwise agree, the panel shall conduct its proceedings in accordance with
the Model Rules of Procedure.
4. Unless the Parties otherwise agree within 20 days from the date of the delivery of the request
for the establishment of the panel, the terms of reference shall be:
"To examine, in the light of the relevant provisions of the Agreement the matter referred by
the complaining Party (in terms of the request for establishment of the panel) and to make
findings, determinations and recommendations as provided in Article XIII.14.2."
5. If the complaining Party wishes to argue that a matter has nullified or impaired benefits, the
terms of reference shall so indicate.
6. If a Party wishes the panel to make findings as to the degree of adverse trade effects on a
Party of any measure found not to conform with the obligations of the Agreement or to have causednullification or impairment in the sense of Annex XIII.5, the terms of reference shall so indicate.
Article XIII.13
Role of Experts
On request of a Party, or on its own initiative, the panel may seek information and technical
advice from any person or body that it deems appropriate, provided that the Parties so agree andsubject to such terms and conditions as the Parties may agree.
Article XIII.14
Initial Report
1. Unless the Parties otherwise agree, the panel shall base its report on the submissions and
arguments of the Parties and on any information before it pursuant to Article XIII.13.WT/REG147/1
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2. Unless the Parties otherwise agree, the panel shall, within 90 days after the last panellist is
selected or such other period as the Model Rules of Procedure established pursuant to Article
XIII.12.1 may provide, present to the Parties an initial report containing:
(a) findings of fact, including any findings pursuant to a request under Article XIII.12.6;
(b) its determination as to whether the measure at issue is or would be inconsistent with
the obligations of this Agreement or cause nullification or impairment in the sense of
Annex XIII.5, or any other determination requested in the terms of reference; and
(c) its recommendations, if any, for resolution of the dispute.
3. Panelists may furnish separate opinions on matters not unanimously agreed.
4. A Party may submit written comments to the panel on its initial report within 14 days of
presentation of the report.
5. In such an event, and after considering such written comments, the panel, on its own initiative
or on the request of a Party, may:
(a) request the views of a Party;
(b) reconsider its report; and
(c) make any further examination that it considers appropriate.
Article XIII.15
Final Report
1. Unless the Parties otherwise agree, the panel shall present to the Parties a final report within
30 days of presentation of the initial report, including any separate opinions on matters notunanimously agreed.
2. No panel may, either in its initial report or its final report, disclose which panelists are
associated with majority or minority opinions.
3. Unless the Parties decide otherwise the final report of the panel shall be published 15 days
after it is transmitted to the Parties.
Article XIII.16
Implementation of Recommendations and Rulings
1. Prompt compliance with recommendations or rulings of the panel is essential in order to
ensure effective resolution of disputes to the benefit of both Parties.
2. Within 30 days after the date on which a panel has issued its final report, the Party
complained against shall notify the other Party of its  intentions in respect of implementation of the
recommendations and rulings of the panel. If it is impracticable to comply immediately with the
recommendations and rulings, the Party complained against shall have a reasonable period of time in
which to do so. The reasonable period of time shall be:WT/REG147/1
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(a) a period of time mutually agreed by the Parties within 45 days after the date the final
report is issued by the panel; or
(b) a period of time determined through binding arbitration within 90 days after the final
report is issued.1 In such arbitration a guideline for the arbitrator should be that the
reasonable period of time to implement a panel report should not exceed 15 monthsfrom the date of the issuance of a final report. However, that time may be shorter or
longer depending upon the particular circumstances.
3. During the reasonable period of time, each Party shall accord sympathetic consideration to
any request from the other Party for consultations with a view to reaching a mutually satisfactory
solution regarding the implementation of the recommendations or rulings of the panel.
4. (a) The issue of implementation of the recomm endations or rulings may be raised by the
complaining Party at any time following the issuance of the final report.
(b) The Party complained against shall report on the status of its implementation of the
recommendations of the rulings at the request of the other Party
2, beginning 6 months
after the date the final report is issued, until the Parties have mutually agreed that the
issue is resolved or until a panel finds pursuant to Article XIII.17 that the Party
complained against has complied.
(c) (i) Upon compliance with the recommendations or rulings of the panel, the Party
complained against shall provide the other Party a written notification on
compliance.
(ii) If the Party complained against has not provided a notification under
paragraph (c)(i) by the date that is 20 days before the date of expiry of thereasonable period of time, then not later than that date the Party complained
against shall provide to the other Party a written notification on compliance,
including the measures that it has taken, or the measures that it expects to
have taken by the expiry of the reasonable period of time. Where the
notification refers to measures that the Party complained against expects tohave taken, the Party complained against shall provide to the other Party a
supplementary written notification no later than the expiry of the reasonable
period of time, stating that it has, or has not, taken such measures, and
indicating any changes to them.
(iii) Each notification under this subparagraph shall include a detailed description
as well as the text of the relevant measures the Party complained against has
taken. The notification requirement of this subparagraph shall not beconstrued to reduce the reasonable period of time establish pursuant to
paragraph 2 of this Article.
                                                     
1 If the Parties cannot agree on an arbitrator within 10 days after referring the matter to arbitration, the
arbitrator shall be chosen by lot from among the panelists.
2 The Party complained against shall provide a detailed written status report concerning its progress in
the implementation of the recommendations or rulings.WT/REG147/1
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Article XIII.17
Determination of Compliance
1. Where there is disagreement between the complaining Party and the Party complained against
as to the existence or consistency with this Agreement of measures taken to comply with the
recommendations or rulings of a panel, such disagreement shall be resolved through recourse to the
dispute settlement procedures provided for in this Article.
2. The complaining Party may request the establis hment of a compliance panel referred to in
paragraph 6 of this Article at any time after:3
(i) the Party complained against states that it does not need a reasonable period
of time for compliance pursuant to paragraph 2 of Article XIII.16;
(ii) the Party complained against has submitted a notification pursuant to
paragraph 4(c) of Article XIII.16 that it has complied with the
recommendations or rulings of the panel; or
(iii) 10 days before the date of expiry of the reasonable period of time;
whichever is the earlier. Such request shall be made in writing.
3. While consultations between the Party complained against and the complaining Party are
desirable, they are not required prior to a request for a compliance panel under paragraph 2.
4. When requesting the establishment of a co mpliance panel, the complaining Party shall
identify the specific measures at issue and provide a brief summary of the legal basis of the complaint,sufficient to present the problem clearly. Unless the Parties agree on special terms of reference within
5 days from the establishment of the compliance panel, standard terms of reference in accordance
with Article XIII.12 shall apply to the compliance panel.
5. The compliance panel shall be established on the date of the delivery of the request to
establish such a panel.
6. The compliance panel shall consist of the members of the original panel. If any member of the
original panel is not available, a new member shall be appointed in accordance with the procedure
established under Article XIII.11.1(b).
7. The compliance panel shall provide its report to the Parties within 90 days of the date of its
establishment.
8. The complaining Party shall not suspend concessions or other obligations under paragraph 9
of this Article until the compliance panel has provided its report to the Parties and the complainingParty has notified the Party complained against which particular concessions or obligations the Party
intends to suspend.
9. If the compliance panel report finds that the Pa rty complained against has failed to bring the
measure found to be inconsistent with this Agreement into compliance therewith or otherwise comply
                                                     
3 A compliance panel may also be established pursuant to paragraph 9 of Article XIII.18.WT/REG147/1
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with the recommendations or rulings of the panel in  the dispute within the reasonable period of time,
then:
(a) the Party complained against shall not be entitled to any further period of time for
implementation; and
(b) after the compliance panel report has been provided to the Parties, the complaining
Party may suspend the application to the Party complained against of concessions or
other obligations under this Agreement pursuant to Article XIII.18.
10. The compliance panel shall establish its own working procedures. The provisions of Articles
XIII.4, XIII.13, XIII.14, XIII.15.2, XIII.15.3, and X III.16.1 shall apply to compliance panel
proceedings except to the extent that:
(a) such provisions are incompatible with the time frame provided in this Article; or
(b) this Article provides more specific provisions.
Article XIII.18
Compensation and Suspension of Concessions
1. Compensation and the suspension of concessions or other obligations are temporary measures
available in the event that the recommendations a nd rulings are not implemented within a reasonable
period of time. However, neither compensation nor the suspension of concessions or other obligations
is preferred to full implementation of a recommenda tion to bring a measure into conformity with the
Agreement. Compensation is voluntary and, if granted, shall be consistent with a Party’s obligations
under this Agreement.
2. If:
(a) the Party complained against does not provide notice pursuant to paragraph 2 of
Article XIII.16 that it intends to implement the recommendations or rulings of the
panel;
(b) the Party complained against does not submit within the required time-period a
notification pursuant to paragraph 4(c) of Article XIII.16 stating that the Party
complained against has complied; or
(c) the compliance panel report pursuant Article XIII.17 finds that the Party complained
against has failed to bring the measures found to be inconsistent with this Agreement
into compliance therewith or otherwise comp ly with the recommendations or rulings
of the panel;
then a complaining Party may suspend the application to the Party complained against of concessions
or other obligations under this Agreement. The Parties are encouraged to consult before concessions
or other obligations are suspended to discuss a mutually satisfactory solution.
3. The complaining Party shall not implement any suspension of concessions or other
obligations until 10 days after it has notified the Party complained against which particularconcessions or obligations the Party intends to suspend.WT/REG147/1
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4. The level of the suspension of concessions or other obligations shall be equivalent to the level
of nullification or impairment.
5. (a) When the complaining Party has provided notice that it intends to suspend
concessions or other obligations pursuant to paragraph 8 of Article XIII.17 or
paragraph 3 of this Article and the Party complained against objects to the level ofsuspension proposed within 10 days after the receipt of such notice, the matter shall
be referred to arbitration.
(b) Such arbitration shall be carried out by the original panel if its members are available.
In such case, the Panel will be deemed to be established by consent of both Parties on
the date the Party complained against files the document with the objections referred
to in subparagraph (a) above. If any member of the original panel is not available, a
new member shall be appointed in accordance with the procedure established underArticle XIII.11 and the date the new Panel is complete shall be deemed to be the date
the matter was referred.
(c) the arbitration shall be completed and the decision of the arbitral panel shall be
provided to the Parties within 45 days after the referral of the matter. The
complaining Party shall not suspend concessions or other obligations during thecourse of the arbitration.
6. The arbitral panel acting pursuant to paragraph 5 shall not examine the nature of the
concessions or other obligations to be suspended, but shall determine whether the level of such
suspension is equivalent to the level of nullification or impairment. The Parties shall accept the
arbitral panel's decision as final and shall not seek a second arbitration. The decision shall constituteauthorization to suspend concessions or other obligations consistent with the decision of the arbitral
panel.
7. The suspension of concessions or other obligations shall be temporary and shall only be
applied until such time as the measure found to be inconsistent with the Agreement has been removed,
or the Party that must implement recommendations or rulings provides a solution to the nullificationor impairment of benefits, or a mutually satisfactory solution is reached. The Commission shall,
unless the Parties otherwise agree, include on its agenda the implementation of adopted
recommendations or rulings, including those cases where compensation has been provided or
concessions or other obligations have been suspended, but the recommendations to bring a measure
into conformity with the Agreement have not been implemented.
8. (a) After a Party has suspended concessions or other obligations pursuant with this
Agreement, the Party complained against may request a termination of suchsuspension on the grounds that it has eliminated the inconsistency or the nullification
or impairment of benefits under this Agreement identified in the recommendations or
rulings of the panel. The Party complained against shall include with any such request
a written notice describing in detail the measures it has taken, providing the text of the
relevant measures. If the Parties agree that the Party complained against haseliminated the inconsistency or the nullification or impairment of benefits, the
authorization to suspend concessions or other obligations shall terminate.
(b) Where there is disagreement between the Parties as to the existence or consistency
with the Agreement of measures taken to comply with the recommendations or
rulings of the panel in the dispute, such disagreement shall be resolved throughrecourse to the dispute settlement procedures provided for in Article XIII.17. If the
compliance panel finds that the measures taken to comply are not inconsistent withWT/REG147/1
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the Agreement and comply with the recommendations or rulings of the panel in the
dispute, it shall withdraw the authorization to suspend concessions or other
obligations.
(c) The complaining Party shall not maintain the suspension of concessions and other
obligations after the panel withdraws the authorization.
9. The dispute settlement provisions of this Agreement may be invoked in respect of measures
affecting their observance taken by regional or local governments or authorities within the territory of
a Party. When a compliance panel has ruled that a provision of the Agreement has not been observed,
the responsible Party shall take such reasonable measures as may be available to it to ensure its
observance. The provisions of this Chapter relating to compensation and suspension of concessions or
other obligations apply in cases where it has not been possible to secure such observance.
Section III - Domestic Proceedings and Private Commercial Dispute Settlement
Article XIII.19
Referrals of Matters from Judicial or Administrative Proceedings
1. If an issue of interpretation or application of this Agreement arises, in any domestic judicial or
administrative proceeding of a Party, that either Party considers would merit its intervention, or if a
court or administrative body solicits the views of a Party, that Party shall notify its Section of the
Secretariat and the other Party. The Commission shall endeavour to agree on an appropriate response
as expeditiously as possible.
2. The Party in whose territory the court or administrative body is located shall submit any
agreed interpretation of the Commission to the court or administrative body in accordance with the
rules of that forum.
3. If the Commission is unable to agree, each Party may submit its own views to the court or
administrative body in accordance with the rules of that forum.
Article XIII.20
Private Rights
Neither Party may provide for a right of action under its domestic law against the other Party
on the ground that a measure of the other Party is inconsistent with this Agreement.
Article XIII.21
Alternative Dispute Resolution
1. Each Party shall, to the maximum extent pos sible, encourage and facilitate the use of
arbitration and other means of alternative dispute resolution for the settlement of international
commercial disputes between private parties in the free trade area.
2. To this end, each Party shall provide appropriate procedures to ensure observance of
agreements to arbitrate and for the recognition and enforcement of arbitral awards in such disputes.WT/REG147/1
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3. A Party shall be deemed to be in compliance with paragraph 2 if it is a party to and is in
compliance with the 1958 United Nations Convention on the Recognition and Enforcement of Foreign
Arbitral Awards  or the 1975 Inter-American Convention on International Commercial Arbitration .
4. The Commission shall establish an Advisory Committee on Private Commercial Disputes
comprising persons with expertise or experience in the resolution of private international commercialdisputes. The Committee shall report and provide recommendations to the Commission on general
issues referred to it by the Commission respecting the availability, use and effectiveness of arbitration
and other procedures for the resolution of such disputes in the free trade area.
ANNEX XIII.1.4: IMPLEMENTATION OF THE MODIFICATIONS
         APPROVED BY THE COMMISSION
The Parties shall implement the decisions of the Commission to which Article XIII.1.3 (d)
refers to, in accordance with the following procedures:
(a) in the case of Canada, in accordance with its internal procedures; and
(b) in the case of Costa Rica, decisions of the Commission will be equivalent to the
instrument referred to in article 121.4 third paragraph of the Political Constitution of
the Republic of Costa Rica.
ANNEX XIII.2.2: COMMITTEES
• Committee on Trade in Goods and Rules of Origin.
• Customs Subcommittee.
• Subcommittee on Agriculture.
• Committee on Sanitary and Phytosanitary Measures.
• Advisory Committee on Private Commercial Disputes.
ANNEX XIII.3.2: REMUNERATION AND PAYMENT OF EXPENSES
1. The Commission shall establish the amounts of remuneration and expenses that will be paid
to the panelists or committee, subcommittee and working group members.
2. The remuneration of panelists or committee, subcommittee and working group members and
their assistants, their travel and lodging expenses, and all general expenses, shall be borne equally bythe Parties.
3. Each panellist or committee, subcommittee and working group member shall keep a record
and render a final account of the person's time and expenses, and the panel or committee,
subcommittee and working group member shall keep a record and render a final account of all general
expenses.WT/REG147/1
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ANNEX XIII.5: NULLIFICATION AND IMPAIRMENT
1. A Party may have recourse to dispute settlement under this Chapter if such Party considers
that any benefit it could reasonably have expected to accrue to it under any provision of Part Two
(Trade in Goods) is being nullified or impaired as a result of the application of any measure that is notinconsistent with this Agreement.
2. In any such dispute, the Panel shall take in to consideration the jurisprudence interpreting
Article XXIII.1.b) of the GATT 1994.
PART SEVEN: OTHER PROVISIONS
CHAPTER XIV: EXCEPTIONS
Article XIV.1
General Exceptions
For purposes of Part Two (Trade in Goods), Article XX of the GATT 1994 and its
interpretative notes, or any equivalent provision of a successor agreement to which both Parties are
party, are incorporated into and made part of this Agreement. The Parties understand that the
measures referred to in Article XX(b) of the GATT 1994 include environmental measures necessary
to protect human, animal or plant life or health, and that Article XX(g) of the GATT 1994 applies tomeasures relating to the conservation of living and non-living exhaustible natural resources.
Article XIV.2
National Security
Nothing in this Agreement shall be construed:(a) to require either Party to furnish or allow access to any information the disclosure of
which it determines to be contrary to its essential security interests;
(b) to prevent either Party from taking any actions that it considers necessary for the
protection of its essential security interests:
(i) relating to the traffic in arms, ammunition and implements of war and to such
traffic and transactions in other goods, materials, services and technology
undertaken directly or indirectly for the purpose of supplying a military or
other security establishment;
(ii) taken in time of war or other emergency in international relations; or
(iii) relating to the implementation of national policies or international agreements
respecting the non-proliferation of nuclear weapons or other nuclear
explosive devices; or
(c) to prevent either Party from taking action in pursuance of its obligations under the
United Nations Charter for the maintenance of international peace and security.WT/REG147/1
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Article XIV.3
Taxation
1. Except as set out in this Article and in Anne x XIV.3.1, nothing in this Agreement shall apply
to taxation measures.
2. Nothing in this Agreement shall affect the rights and obligations of either Party under any tax
convention. In the event of any inconsistency betw een this Agreement and any such convention, that
convention shall prevail to the extent of the inconsistency.
3. Notwithstanding paragraph 2:
(a) Article III.2 (National Treatment) and such other provisions of this Agreement as are
necessary to give effect to that Article shall apply to taxation measures to the sameextent as does Article III of the GATT 1994; and
(b) Article III.12 (Export Taxes) shall apply to taxation measures.
Article XIV.4
Balance of Payments
1. Nothing in this Agreement shall be construed to prevent a Party from adopting or maintaining
measures that restrict transfers where the Party experiences serious balance of payments difficulties,
or the threat thereof, and such restrictions are consistent with this Article.
2. As soon as practicable after a Party imposes a measure under this Article, the Party shall:
(a) submit any current account exchange restrictions to the International Monetary Fund
(IMF) for review under Article VIII of the Articles of Agreement of the IMF;
(b) enter into good faith consultations with the IMF on economic adjustment measures to
address the fundamental underlying economic problems causing the difficulties; and
(c) adopt or maintain economic policies consistent with such consultations.
3. A measure adopted or maintained under this Article shall:
(a) avoid unnecessary damage to the commercial, economic or financial interests of the
other Party;
(b) not be more burdensome than necessary to deal with the balance of payments
difficulties or threat thereof;
(c) be temporary and be phased out progressively as the balance-of-payments situation
improves;
(d) be consistent with paragraph 2(c) and with the Articles of Agreement of the IMF; and
(e) be applied on a national treatment or most-favoured-nation treatment basis,
whichever is better.WT/REG147/1
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4. A Party may adopt or maintain a measure under this Article that gives priority to services that
are essential to its economic program, provided that a Party may not impose a measure for the purpose
of protecting a specific industry or sector unless the measure is consistent with paragraph 2(c) and
with Article VIII(3) of the Articles of Agreement of the IMF.
5. Restrictions imposed on transfers:
(a) where imposed on payments for current international transactions, shall be consistent
with Article VIII(3) of the Articles of Agreement of the IMF;
(b) where imposed on international capital transactions, shall be consistent with Article
VI of the Articles of Agreement of the IMF and be imposed only in conjunction with
measures imposed on current international transactions under paragraph 2(a);
(c) where imposed on transfers covered by Article IX of the Agreement Between the
Government of the Republic of Costa Rica and the Government of Canada for thePromotion and Protection of Investments , signed in San Jose on March 18, 1998,
shall be consistent with Annex I, Section V of that Agreement;
(d) where imposed on transfers related to trade in goods, may not substantially impede
transfers from being made in a freely usable currency at a market rate of exchange;
and
(e) may not take the form of tariff surcharges, quotas, licences or similar measures.
Article XIV.5
Disclosure of Information
Nothing in this Agreement shall be construed to require a Party to furnish or allow access to
information the disclosure of which would impede law enforcement or would be contrary to the
Party's law protecting personal privacy or the financial affairs and accounts of individual customers of
financial institutions.
Article XIV.6
Cultural Industries
Measures affecting cultural industries are exempt from the provisions of this Agreement
except as specifically provided for in Chapter III (National Treatment and Market Access of Goods)
of this Agreement.
Article XIV.7
Definitions
For purposes of this Chapter:cultural industries  means persons engaged in any of the following activities:
(a) the publication, distribution, or sale of books, magazines, periodicals or newspapers
in print or machine readable form but not including the sole activity of printing or
typesetting any of the foregoing;WT/REG147/1
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(b) the production, distribution, sale or exhibition of film or video recording;
(c) the production, distribution, sale or exhibition of audio or video music recordings;
(d) the publication, distribution or sale of music in print or machine-readable form; or
(e) radiocommunications in which the transmissions are intended for direct reception by
the general public, and all radio, television and cable broadcasting undertakings andall satellite programming and broadcast network services.
international capital transactions  means "international capital transactions" as defined
under the Articles of Agreement of the IMF;
IMF  means the International Monetary Fund;
payments for current international transactions  means "payments for current international
transactions" as defined under the Articles of Agreement of the IMF;
tax convention  means a convention for the avoidance of double taxation or other
international taxation agreement or arrangement;
taxation measures  do not include:
(a) a "customs duty" as defined in Article III.17 (Definitions); or
(b) the measures listed in exceptions (b), (c) and (d) of that definition; and
transfers  means international transactions and related international transfers and payments.
ANNEX XIV.3.1: DOUBLE TAXATION
1. The Parties agree to conclude a bilateral double taxation agreement within a reasonable time
after the date that this Agreement enters into force.
2. The Parties agree that upon conclusion of a bilateral double taxation agreement, they will
agree to an exchange of letters setting out the relationship between the double taxation agreement and
Article XIV.3 of the Agreement.
CHAPTER XV: FINAL PROVISIONS
Article XV.1
Annexes, Appendices and Footnotes
The Annexes, Appendices and footnotes to this Agreement constitute integral parts of this
Agreement.WT/REG147/1
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Article XV.2
Amendments
1. The Parties may agree on any modification of or addition to this Agreement.
2. When so agreed, and approved in accordance with the applicable legal procedures of each
Party, a modification or addition shall constitute an integral part of this Agreement.
Article XV.3
Reservations
This Agreement shall not be subject to unilateral reservations or unilateral interpretative
declarations.
Article XV.4
Entry into Force
This Agreement shall enter into force following an exchange of written notifications
certifying the completion of necessary legal procedures. The Parties agree on the desirability of an
exchange of such notifications by January 1, 2002.
Article XV.5
Duration and Termination
This Agreement shall remain in force unless terminated by either Party on 6 months' notice to
the other Party.
Article XV.6
Authentic Texts
The English, French and Spanish texts of this Agreement are equally authentic.
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