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Canada-Chile Free Trade Agreement

Part Three bis - Chapter K bis - Government Procurement

Annex K bis-01.1-1

Central Level Entities

Schedule of Canada:

Thresholds:

Cdn $ 84,000 - Goods covered in Annex Kbis-01.1-3
Cdn $ 84,000 - Services covered in Annex Kbis-01.1-4
Cdn $ 9,400,000 - Construction Services covered in Annex Kbis-01.1-5

Note to Annex Kbis-01.1-1

The General Notes apply to this Annex.

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Schedule of Chile:

Thresholds:

CLP 33,599,963 - Goods covered in Annex Kbis-01.1-3
CLP 33,599,963 - Services covered in Annex Kbis-01.1-4
CLP 4,373,536,606 - Construction Services covered in Annex Kbis-01.1-5

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Gobiernos Regionales

Intendencia I Región
Gobernación de Arica
Gobernación de Parinacota
Gobernación de Iquique

Intendencia II Región
Gobernación de Antofagasta
Gobernación de El Loa
Gobernación de Tocopilla

Intendencia III Región
Gobernación de Chañaral
Gobernación de Copiapó

Intendencia IV Región
Gobernación de Huasco
Gobernación de El Elqui
Gobernación de Limarí
Gobernación de Choapa

Intendencia V Región
Gobernación de Petorca
Gobernación de Valparaíso
Gobernación de San Felipe de Aconcagua
Gobernación de Los Andes
Gobernación de Quillota
Gobernación de San Antonio
Gobernación de Isla de Pascua

Intendencia VI Región
Gobernación de Cachapoal
Gobernación de Colchagua
Gobernación de Cardenal Caro

Intendencia VII Región
Gobernación de Curicó
Gobernación de Talca
Gobernación de Linares
Gobernación de Cauquenes

Intendencia VIII Región
Gobernación de Ñuble
Gobernación de Bío-Bío
Gobernación de Concepción
Gobernación de Arauco

Intendencia IX Región
Gobernación de Malleco
Gobernación de Cautín

Intendencia X Región
Gobernación de Valdivia
Gobernación de Osorno
Gobernación de Llanquihue
Gobernación de Chiloé
Gobernación de Palena

Intendencia XI Región
Gobernación de Coyhaique
Gobernación de Aysén
Gobernación de General Carrera

Intendencia XII Región
Gobernación de Capitán Prat
Gobernación de Última Esperanza
Gobernación de Magallanes
Gobernación de Tierra del Fuego
Gobernación de Antártica Chilena

Intendencia Región Metropolitana
Gobernación de Chacabuco
Gobernación de Cordillera
Gobernación de Maipo
Gobernación de Talagante
Gobernación de Melipilla
Gobernación de Santiago

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Annex K bis-01.1-2
Other Covered Entities
Schedule of Canada:

Thresholds:

Cdn $ 420,000 - Goods covered in Annex Kbis-01.1-3
Cdn $ 420,000 - Services covered in Annex Kbis-01.1-4
Cdn $ 13,400,000 - Construction Services covered in Annex Kbis-01.1-5

Notes to Annex Kbis-01.1-2

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Schedule of Chile:

Thresholds:

CLP 167,999,297 - Goods covered in Annex Kbis-01.1-3
CLP 167,999,297 - Services covered in Annex Kbis-01.1-4
CLP 5,980,244,385 - Construction Services covered in Annex Kbis-01.1-5

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Annex K bis-01.1-3

Goods

Schedule of Canada:

Section A - General Provisions

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Section B - List of Certain Goods

(Numbers refer to the Federal Supply Classification

Note to Annex Kbis-01.1-3

The General Notes apply to this Annex.

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Schedule of Chile:

This Chapter applies to all goods procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2.

Annex K bis-01.1-4

Services

Schedule of Canada:
Section A - General Provisions

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Section B - Excluded Coverage

Services Exclusions by Major Service Category

Part 1 - Annex Kbis-01.1-1 and Annex Kbis-01.1-2

The following services are excluded for entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2:

A. Research and Development

All classes

B. Special Studies and Analysis - not R&D

B002 Animal and Fisheries Studies

B003 Grazing and Range Studies

B400 Aeronautic/Space Studies

B503 Medical and Health Studies

B507 Legal Studies (Except Advisory Services on Foreign Law)

C. Architecture and Engineering Services

C112 Airfield, Communication and Missile Facilities

C216 Marine Architect and Engineering Services

D. Information Processing and Related Telecommunications Services

D304 ADP Telecommunications and Transmission Services, except those classified as “enhanced or value-added services.” Enhanced or value added services means those telecommunications services employing computer processing applications that:

For purposes of this provision, the procurement of “ADP Telecommunications and Transmission services” does not include the ownership or furnishing of facilities for the transmission of voice or data services. This provision only extends to providers of enhanced or value-added services whose underlying telecommunications transmission facilities are leased from providers of public telecommunications transport networks.

D305 ADP Teleprocessing and Timesharing Services

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F. Natural Resources and Conservation Services

F004 Land Treatment Practices Services (plowing/clearing, etc)

F005 Range Seeding Services (ground equipment)

F006 Crop Services inc. Seed Collection/Production Services

F011 Pesticides/Insecticides Support Services (except forestry and logging)

F021 Veterinary/Animal Care Services (inc. livestock services)

F029 Other Animal Care /Control Services

F030 Fisheries Resources Management Services

F031 Fish Hatchery Services

F050 Recreation Site Maintenance Services (non-construction)

F059 Other Natural Resource and Conservation Services

G. Health and Social Services

All classes

H. Quality Control, Testing and Inspection and Technical Representative Services

Services for the departments and functions listed in Annex Kbis-01.1-6 – General Notes, Note 1 (e) to this schedule respecting FSC 36 – (Special Industry Machinery), FSC 70 – (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 - (Office machines, text processing systems and visible record equipment)

FSC 58 (Communications, Detection, and Coherent Radiation Equipment)

Services with reference to transportation equipment

J. Maintenance, Repair, Modification, Rebuilding and Installation of Equipment

Services for the departments and functions listed in Annex Kbis-01.1-6 – General Notes, Note 1 (e) to this schedule respecting FSC 36 – (Special Industry Machinery), FSC 70 – (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 - (Office machines, text processing systems and visible record equipment)

FSC 58(Communications, Detection, and Coherent Radiation Equipment)

Services with reference to transportation equipment

J019 Maintenance, Repair, Modification, Rebuilding and Installation of Equipment related to Ships

J998 Non-nuclear Ship Repair

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K. Custodial Operations and Related Services

K0 Personal Care Services

K105 Guard Services

K109 Surveillance Services

K115 Preparation and Disposal of Excess and Surplus Property

L. Financial and Related Services

All classes

M. Operation of Government Owned Facilities

All facilities operated by:
The Department of National Defence
The Department of Transport
The Department of Natural Resources

and for all Departments: M180 and M140

R. Professional, Administrative and Management Support Services

R003 Legal Services (Except Advisory Services on Foreign Law)

R004 Certifications and accreditations for products and institutions other than Educational Institutions

R007 Systems Engineering ServicesFootnote 1

R012 Patent and Trade Mark Services

R101 Expert Witness

R102 Weather Reporting/Observation Services

R104 Transcription Services

R106 Post Office Services

R109 Translation and Interpreting Services (inc. sign language)

R114 Logistics Support ServicesFootnote 2

R116 Court Reporting Services

R117 Paper Shredding Services

R201 Civilian Personnel Recruitment (inc. Services of Employment Agencies)

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S. Utilities

All classes

T. Communications, Photographic, Mapping, Printing and Publications Services

All classes

U. Education and Training Services

U010 Certifications and accreditations for Educational Institutions

V. Transportation, Travel and Relocation Services

All classes (except V502 Hotel and similar accommodation services only and V503 Travel Agent Services (not including Tour Guides))

W. Lease or Rental of Equipment

Services for the departments and functions listed in Annex Kbis-01.1-6 – General Notes, Note 1 (e) to this schedule respecting FSC 36 – (Special Industry Machinery), FSC 70 – (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 - (Office machines, text processing systems and visible record equipment)

FSC 58 (Communications, Detection, and Coherent Radiation Equipment)

Services with reference to transportation equipment

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Part 2 - Annex Kbis-01.1-2

The following services are excluded for entities listed in Annex Kbis-01.1-2 only:

D. Information Processing and Related Telecommunications Services

D309 Information and Data Broadcasting or Data Distribution Services

D316 Telecommunications Network Management Services

D317 Automated News Service, Data Services, or Other Information Services. Buying data, the electronic equivalent of books, periodicals, newspapers, etc.

D399 Other ADP and Telecommunications Services

F. Natural Resources and Conservation Services

F007 Seedling Production/Transplanting Services

F010 Other Range/Forest Improvements Services

R. Professional, Administrative and Management Support Services

R113 Data Collection Services

V. Transportation, Travel and Relocation Services

V502 Hotel and similar accommodation services only

Notes to Annex K bis-01.1-4

1. All services, with reference to those goods purchased by the Department of National Defence, the Royal Canadian Mounted Police and the Canadian Coast Guard which are not identified as subject to coverage by this Chapter (Annex Kbis-01.1-3), will be exempt from the disciplines of the Chapter.

2. All services purchased in support of military forces located overseas will be exempt from coverage by this Chapter.

3. The General Notes apply to this Annex.

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Schedule of Chile

This Chapter applies to all services procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2, except the following:

Financial Services

All classes

Annex K bis-01.1-5

Construction Services

Schedule of Canada:

Section A - General Provisions

1. Coverage includes all construction services set out in the Common Classification System, except those listed in Section B, that are procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2.

2. The Common Classification System

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Section B - Excluded Coverage

Services Exclusions by Major Service Category

The following services contracts are excluded:

Note to Annex Kbis-01.1-5

The General Notes apply to this Annex.

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Schedule of Chile:

This Chapter applies to all construction services procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2.

Annex K bis-01.1-6

General Notes

Schedule of Canada:

1.This Chapter does not apply to procurements in respect of:

2. This Chapter does not apply to the procurement of transportation services that form a part of, or are incidental to, a procurement contract.

3. Pursuant to Article Kbis-16, national security exceptions include oil purchases related to any strategic reserve requirements.

4. National security exceptions include procurements made in support of safeguarding nuclear materials or technology.

5. The procurement process is the process that begins after an entity has decided on its requirement and continues through to and including contract award.

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Schedule of Chile:

This Chapter does not apply to procurements in respect of financial services.

Annex K bis-01.1-7

Threshold Adjustment Formulas

1. The thresholds referred to in Annexes Kbis-01.1-1, Kbis-01.1-2 and Kbis-01.1-8, except the threshold for construction services in Annex Kbis-01.1-1, shall be adjusted in accordance with Annex 1001.1c of the North American Free Trade Agreement.

2. The threshold for construction services in Annex Kbis-01.1-1 shall be adjusted;

3. The Parties agree that the thresholds shall be fixed for two calendar years and the first threshold adjustment will take place effective 1 January, 2008.

4. Where a major change in a national currency of either Party during a year were to create a significant problem with regard to the application of the Chapter, the Parties shall consult as to whether an interim adjustment is appropriate.

5. In the event that:

6. The Committee shall recommend to the Commission any modification of, or addition to Annex Kbis-01.1-7.

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Annex K bis-01.1-8

Extended Transparency Commitments

The provisions of Article Kbis-03; Article Kbis-04; the first sentence of Article Kbis-05(1); Article Kbis-06(1) and (3); Article Kbis-08(1), (2)(b), and (5); Article Kbis-10(1) and (2); Article Kbis-15 and Article Kbis-16 apply where:

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