Text of the Canada–Indonesia Comprehensive Economic Partnership Agreement

Table of contents

• PREAMBLE
• CHAPTER 1: INITIAL PROVISIONS AND GENERAL DEFINITIONS
  • Section A: Initial Provisions
  • Section B: General Definitions
• CHAPTER 2: NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
  • ANNEX 2-A: TARIFF COMMITMENTS
  • APPENDIX I: TARIFF SCHEDULE OF CANADA
  • APPENDIX I: TARIFF SCHEDULE OF INDONESIA
• CHAPTER 3: RULES OF ORIGIN AND ORIGIN PROCEDURES
  • Section A: Definitions
  • Section B: Rules of Origin
  • Section C: Origin Procedures
  • Section D: Other Matters
  • ANNEX 3-A: MINIMUM DATA ELEMENTS OF THE DECLARATION OF ORIGIN
  • ANNEX 3-B: PRODUCT-SPECIFIC RULES OF ORIGIN
• CHAPTER 4: CUSTOMS PROCEDURES AND TRADE FACILITATION
• CHAPTER 5: SANITARY AND PHYTOSANITARY MEASURES
• CHAPTER 6: TECHNICAL BARRIERS TO TRADE
• CHAPTER 7: TRADE REMEDIES
  • Section A: Anti-Dumping and Countervailing Measures
  • Section B: Bilateral Emergency Actions
  • Section C: Global Safeguard Measures
  • Section D: Other Provisions
• CHAPTER 8: TRADE IN SERVICES
  • ANNEX 8-A: DEVELOPMENT AND ADMINISTRATION OF MEASURES
  • ANNEX 8-B: PROFESSIONAL SERVICES
  • APPENDIX 8-B-1: GUIDELINES FOR MUTUAL RECOGNITION AGREEMENTS OR ARRANGEMENTS FOR THE PROFESSIONAL SERVICES SECTOR
• CHAPTER 9: TEMPORARY MOVEMENT OF NATURAL PERSONS
  • ANNEX 9-A: SCHEDULE OF THE PARTIES
• CHAPTER 10: FINANCIAL SERVICES
  • ANNEX 10-A: CROSS-BORDER TRADE
  • ANNEX 10-B: TRANSITION FOR THE APPLICATION OF ARTICLE 10.10.1(c)(i) (NON-CONFORMING MEASURES)
  • ANNEX 10-C: AUTHORITIES RESPONSIBLE FOR FINANCIAL SERVICES
• CHAPTER 11: TELECOMMUNICATIONS
• CHAPTER 12: ELECTRONIC COMMERCE
• CHAPTER 13: INVESTMENT
  • Section A: Definitions
  • Section B: Investment Protections
  • Section C: Reservations, Exceptions, Exclusions
  • Section D: Investor-State Dispute Settlement
  • ANNEX 13-A: EXCLUSIONS FROM DISPUTE SETTLEMENT
• CHAPTER 14: INTELLECTUAL PROPERTY
  • Section A: General Provisions
  • Section B: Cooperation
  • Section C: Trademarks
  • Section D: Geographical Indications
  • Section E: Patents
  • Section F: Industrial Designs
  • Section G: Copyright and Related Rights
  • Section H: Trade Secrets
  • Section I: Genetic Resources, Traditional Knowledge, and Traditional Cultural Expressions
  • Section J: Enforcement of Intellectual Property Rights
  • Section K: Final Provisions
• CHAPTER 15: COMPETITION POLICY AND STATE-OWNED ENTERPRISES
  • Section A: Competition Policy
  • Section B: State-Owned Enterprises
  • ANNEX 15-A: THRESHOLD CALCULATION
  • ANNEX 15-B: PROCESS FOR DEVELOPING INFORMATION CONCERNING STATE-OWNED ENTERPRISES
  • ANNEX 15-C: NON-CONFORMING ACTIVITIES
  • ANNEX 15-D: INITIAL LIST OF COVERED STATE-OWNED ENTERPRISES FOR INDONESIA
• CHAPTER 16: GOVERNMENT PROCUREMENT
  • ANNEX 16-A: PUBLICATION MEDIA
• CHAPTER 17: TRADE AND SUSTAINABLE DEVELOPMENT
  • Section A: General Provisions
  • Section B: Trade and Environment
  • Section C: Trade and Labour
  • Section D: Trade and Women’s Economic Empowerment
  • Section E: Institutional Provisions
• CHAPTER 18: TRADE AND SMALL AND MEDIUM-SIZED ENTERPRISES
• CHAPTER 19: ECONOMIC AND TECHNICAL COOPERATION
• CHAPTER 20: BILATERAL DIALOGUES ON PRIORITY MATTERS
• CHAPTER 21: GOOD REGULATORY PRACTICES AND REGULATORY COOPERATION
  • ANNEX 21-A: ADDITIONAL PROVISIONS CONCERNING THE SCOPE OF “REGULATORY MEASURES”AND “REGULATORY AUTHORITIES”
• CHAPTER 22: TRANSPARENCY, ANTI-CORRUPTION, AND RESPONSIBLE BUSINESS CONDUCT
  • Section A: Definitions
  • Section B: Transparency
  • Section C: Anti-Corruption
  • Section D: Responsible Business Conduct and Corporate Social Responsibility
• CHAPTER 23: ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS
• CHAPTER 24: DISPUTE SETTLEMENT
  • Section A: Dispute Settlement
  • Section B: Domestic Proceedings and Private Commercial Dispute Settlement
  • ANNEX 24-A: RULES OF PROCEDURE FOR MEDIATION
  • ANNEX 24-B: RULES OF PROCEDURE
  • ANNEX 24-C: CODE OF CONDUCT
• CHAPTER 25: EXCEPTIONS AND GENERAL PROVISIONS
  • Section A: Exceptions
  • Section B: General Provisions
• CHAPTER 26: FINAL PROVISIONS
• ANNEX I-A: Reservations for Existing Measures (ratchet)
  • SCHEDULE OF CANADA
  • SCHEDULE OF INDONESIA
• ANNEX I-B: Reservations for Existing Measures (standstill)
  • SCHEDULE OF CANADA
  • SCHEDULE OF INDONESIA
• ANNEX II: Reservations for Future Measures
  • SCHEDULE OF CANADA
  • SCHEDULE OF INDONESIA
• ANNEX III
  • SCHEDULE OF CANADA
  • SCHEDULE OF INDONESIA

PREAMBLE

CANADA AND THE REPUBLIC OF INDONESIA, collectively referred to as “the Parties”, resolving to:

STRENGTHEN the bonds of friendship and cooperation between them and their peoples;

BUILD on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994, and other multilateral and bilateral instruments of cooperation;

FACILITATE trade in goods and services between the Parties by enhancing transparency, and promoting good regulatory practices;

RECOGNISE that the provisions of this Agreement preserve the right of the Parties to regulate within their territories to achieve legitimate public policy objectives;

PROTECT human, animal, or plant life or health in the territories of the Parties and advance science-based decision making while facilitating trade between them;

PROMOTE transparency, good governance and the rule of law, and prevent and combat bribery and corruption in trade and investment;

ENHANCE conditions of fair competition in the territory of the Parties;

ENCOURAGE enterprises operating within their territory or subject to their jurisdiction to respect internationally recognised responsible business conduct principles and standards;

PROMOTE, PROTECT and ENFORCE labour rights, the improvement of working conditions, and the strengthening of cooperation on labour issues;

PROMOTE high levels of environmental protection, including through effective enforcement of environmental laws and environmental cooperation;

ADVANCE the objective of sustainable development in its economic, social and environmental dimensions through enhanced bilateral relations;

SUPPORT the growth and development of small and medium-sized enterprises by enhancing their ability to fully participate in and benefit from the opportunities created by this Agreement;

RECOGNISE that small and medium-sized enterprises, including micro enterprises and entrepreneurs contribute significantly to economic prosperity, employment, community development, youth engagement and innovation, as well as making progress in achieving the UN Sustainable Development Goals;

REAFFIRM their commitments as parties to the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions, done at Paris on 20 October 2005, and recognise that states must maintain the ability to preserve, develop, and implement their cultural policies;

ESTABLISH a predictable legal and commercial framework that supports increased trade and investment through their Comprehensive Economic Partnership;

HAVE AGREED as follows:

CHAPTER 1: INITIAL PROVISIONS AND GENERAL DEFINITIONS

Section A: Initial Provisions

Article 1.1: Establishment of a Free Trade Area

The Parties, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish the Canada-Indonesia Comprehensive Economic Partnership as a free trade area.

Article 1.2: Relation to Other Agreements

1. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which the Parties are party.
2. If a Party considers that a provision of this Agreement is inconsistent with a provision of another agreement referred to in paragraph 1, the Parties shall, on request, consult with each other to reach a mutually satisfactory outcome. This paragraph is without prejudice to a Party’s rights and obligations under Chapter 24 (Dispute Settlement).

Article 1.3: Extent of Obligations

Except as otherwise provided in this Agreement, each Party is fully responsible for the observance of all provisions of this Agreement and shall take reasonable measures as may be available to it to ensure observance of the provisions of this Agreement by governments other than at the central level and authorities within its territory.

Article 1.4: Delegated Authority

Each Party shall ensure that any person that has been delegated regulatory, administrative, or other governmental authority by a Party act in accordance with the Party’s obligations as set out under this Agreement in the exercise of that authority.

Section B: General Definitions

Article 1.5: General Definitions

For the purposes of this Agreement, unless otherwise specified:

AD Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;

central government means:

1. for Canada, the Government of Canada;
2. for Indonesia, the Government of the Republic of Indonesia;

covered investment means, with respect to a Party, an investment:

1. in its territory;
2. made in accordance with the applicable domestic law of the Party at the time the investment is made;^Footnote1
3. directly or indirectly owned or controlled by an investor of the other Party; and
4. existing on the date of entry into force of this Agreement, or made or acquired thereafter;

customs administration means the governmental authority that is responsible under the law of a Party for the administration of customs laws and regulations or any successor of such customs administration;

Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex 1A of the WTO Agreement;

days means calendar days, including weekends and holidays;

enterprise means any entity constituted or organised under applicable law, whether or not for profit, and whether privately or governmentally owned or controlled, including any corporation, trust, partnership, sole proprietorship, joint venture, association, or similar organisation;

existing means in effect on the date of entry into force of this Agreement;

GATS means the General Agreement on Trade in Services Annex 1B of the WTO Agreement;

GATT 1994 means the General Agreement on Tariffs and Trade 1994 in Annex 1A of the WTO Agreement;

goods means any merchandise, product, article, or material;

Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, Chapter Notes, and Subheading Notes as set out in the Annex to the International Convention on the Harmonized Commodity Description and Coding System, done at Brussels on 14 June 1983, as may be amended, and as adopted and implemented by the Parties in their respective laws;

heading means the first four digits in the tariff classification number under the Harmonized System;

measure means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form;

national means a natural person who is:

1. for Canada, a Canadian citizen or permanent resident under Canadian law;
2. for Indonesia, an Indonesian national as defined in Law No. 12/2006, as amended, or any successor legislation;

perishable goods means goods that rapidly decay due to their natural characteristics, in particular in the absence of appropriate storage conditions;

person means a natural person or an enterprise;

person of a Party means a national of a Party or an enterprise of a Party;

preferential tariff treatment means the customs duty rate applicable to an originating good under this Agreement;

regional government means:

1. for Canada, a province or territory of Canada;
2. for Indonesia, a province of Indonesia, as defined under Indonesian law;

Safeguards Agreement means the Agreement on Safeguards in Annex 1A to the WTO Agreement;

sanitary or phytosanitary measure means a measure referred to in paragraph 1 of Annex A to the SPS Agreement;

SCM Agreement means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;

SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement;

state enterprise means an enterprise that is owned, or controlled through ownership interests, by a Party;

subheading means the first six digits in the tariff classification number under the Harmonized System;

territory means:

1. with respect to Canada,
   1. the land territory, air space, internal waters, and territorial sea of Canada,
   2. the exclusive economic zone of Canada, and
   3. the continental shelf of Canada,
   as determined by its domestic law and consistent with international law;
2. with respect to Indonesia, the land territories, internal waters, archipelagic waters, territorial sea, including the seabed and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which Indonesia has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with international law, including the United Nations Convention on the Law of the Sea, done at Montego Bay on 10 December 1982;

TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement;

WTO means the World Trade Organization; and

WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.

CHAPTER 2: NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS

Article 2.1: Definitions

For the purposes of this Chapter:

Agreement on Agriculture means the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement;

agricultural good means a product listed in Annex 1 to the Agreement on Agriculture;

consular transactions means requirements that goods of a Party intended for export to the territory of the other Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas for commercial invoices, certificates of origin, manifests, shippers’ export declarations, or any other customs documentation required on or in connection with importation;

customs duty means a duty or a charge of any kind imposed on or in connection with the importation of a good, including a form of surtax or surcharge imposed on or in connection with that importation, but does not include:

1. a charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994;
2. an anti-dumping or countervailing duty;
3. a fee or other charge imposed in connection with the importation commensurate with the cost of services rendered; and
4. a payment or a security offered or collected related to an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions or tariff rate quotas;

duty-free means free of customs duty;

export licensing procedure means a requirement that a Party adopts or maintains under which an exporter must, as a condition for exporting a good from the Party’s territory, submit an application or other documentation to an administrative body or bodies, but does not include customs documentation required in the normal course of trade or any requirement that must be fulfilled prior to introduction of the good into commerce within the Party’s territory;

export subsidy means an export subsidy as defined in Article 1(e) of the Agreement on Agriculture;

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 a Party;

import licensing means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party;

Import Licensing Agreement means the Agreement on Import Licensing Procedures, contained in Annex 1A to the WTO Agreement;

low level presence (LLP) occurrence means the inadvertent low level presence in a shipment of plants or plant products, except for a plant or plant product that is a medicine or medical product, of rDNA plant material that is authorized for use in at least one country, but not in the importing country, and if authorized for food use, a food safety assessment has been done based on the Codex Guideline for the Conduct of a Food Safety Assessment of Foods Derived from Recombinant-DNA Plants (CAG/GL 45-2003).

modern biotechnology means the application of:

1. in vitro nucleic acid techniques, including recombinant DNA and direct injection of nucleic acid into cells or organelles; or
2. fusion of cells beyond the taxonomic family,

that overcome natural physiological reproductive or recombination barriers and that are not techniques used in traditional breeding and selection;

product of modern biotechnology means an agricultural good, or a fish or fish product covered by Chapter 3 of the Harmonized System (HS) intended for food and feed, developed using modern biotechnology, but does not include a medicine or a medical product.

Article 2.2: Scope

Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.

Article 2.3: 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 are incorporated into and made part of this Agreement, mutatis mutandis.
2. For greater certainty, the treatment to be accorded by a Party under paragraph 1 means, with respect to a regional level of government, treatment no less favourable than the most favourable treatment that the regional level of government accords to any like, directly competitive or substitutable goods, as the case may be, of the Party of which it forms a part.
3. This Article does not apply to a measure, including a measure’s continuation, prompt renewal or amendment, in respect of excise duties on absolute alcohol, as listed under tariff item 2207.10.90 in each Party’s Schedule of Concessions annexed to the GATT 1994 and the internal sale and distribution of wine and distilled spirits.

Article 2.4: Elimination of Customs Duties on Imports

1. Except as otherwise provided in this Agreement, a Party shall not increase any existing customs duty, or adopt any new customs duty, on an originating good.
2. Except as otherwise provided in this Agreement, each Party shall eliminate its customs duties on originating goods in accordance with its Schedule to Annex 2-A (Tariff Commitments).
3. On the request of a Party, the Parties shall consult to consider accelerating or broadening the scope of the elimination of customs duties set out in their Schedules to Annex 2-A (Tariff Commitments). An agreement between the Parties to accelerate or broaden the scope of the elimination of a customs duty on an originating good shall supersede any customs duty rate or staging category determined pursuant to each Party’s Schedule to Annex 2-A (Tariff Commitments) for that good in accordance with and upon completion of each Party's applicable legal procedures.
4. A Party may at any time unilaterally accelerate or broaden the scope of the elimination of customs duties set out in its Schedule to Annex 2-A (Tariff Commitments) on originating goods of the other Party. A Party shall inform the other Party as early as practicable before the new rate of customs duties takes effect.
5. For greater certainty, a Party shall not prohibit an importer from claiming for an originating good the rate of customs duty applied under the WTO Agreement.
6. For greater certainty, a Party may:
   1. modify its tariffs on goods for which no tariff preference is claimed under this Agreement;
   2. increase a customs duty to the level established in its Schedule to Annex 2-A (Tariff Commitments) after a unilateral reduction; or
   3. maintain or increase a customs duty as authorized by this Agreement, the Dispute Settlement Body of the WTO, or an agreement under the WTO Agreement.

Article 2.5: Classification of Goods and Transposition of Tariff Commitments

1. The classification of goods in trade between the Parties shall be in conformity with the Harmonized System (HS) and its amendments.
2. At the request of a Party, the Parties shall share information on those tariff items if any revisions are necessary, to ensure that each Party’s obligations under this Agreement are not altered by its implementation of future amendments to the Harmonized System (HS) into its national nomenclature.
3. At the request of a Party, the Committee on Trade in Goods may review the future amendments to the Harmonized System (HS) to ensure that each Party’s obligations under this Agreement are not altered, including by establishing, as needed, guidelines for the transposition of Parties’ Schedules to Annex 2-A (Tariff Commitments) and consult to resolve any differences that may arise between the Parties on matters related to the Harmonized System (HS).

Article 2.6: Agricultural Special Safeguards

Originating agricultural goods traded under preferential tariff treatment shall not be subject to any duties that the importing Party applies pursuant to a special safeguard it takes pursuant to the Agreement on Agriculture.^Footnote2

Article 2.7: Import and Export Restrictions

1. Except as otherwise provided in this Agreement, a Party shall not 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, including its interpretative notes, and to this end, Article XI of the GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
2. The Parties understand that GATT 1994 rights and obligations incorporated by paragraph 1 prohibit, in any circumstances in which any other form of restriction is prohibited, a Party from adopting or maintaining:
   1. export or import price requirements, except as permitted in enforcement of countervailing and antidumping duty orders or undertakings; or
   2. voluntary export restraints inconsistent with Article VI of the GATT 1994, as implemented under Article 18 of the SCM Agreement and Article 8.1 of the AD Agreement.
3. Except as otherwise provided in this Agreement, a Party shall not adopt or maintain any measure prohibited by Article 4.2 of the Agreement on Agriculture with respect to goods of the other Party. To this end, Article 4.2 of the Agreement on Agriculture is incorporated into and made part of this Agreement.^Footnote3
4. If 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 that Party from:
   1. limiting or prohibiting the importation of the good of that non-Party from the territory of the other Party; or
   2. requiring, as a condition for exporting the good of that 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.
5. For the purposes of this Article, consumed means:
   1. actually consumed; or
   2. further processed or manufactured so as to result in a substantial change in the value, form or use of the good, or in the production of another good.
6. If a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, on the request of a Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing or distribution arrangements in the other Party.
7. This Article does not apply to a measure, including that measure’s continuation, prompt renewal or amendment, in respect of the following:
   1. excise duties on absolute alcohol, as listed under tariff item 2207.10.90 in a Partys’ Schedule of Concessions annexed to the GATT 1994;
   2. the importation of goods of the prohibited provisions of tariff items 9897.00.00, 9898.00.00, and 9899.00.00 referred to in the Schedule of the Customs Tariff;
   3. the use of ships in the coasting trade of each Party’s own territory;
   4. the export of logs of all species; and
   5. the export of unprocessed fish pursuant to applicable provincial legislation.

Article 2.8: Agricultural Export Subsidies

1. The Parties affirm their rights and obligations under the Nairobi WTO Ministerial Decision of 19 December 2015 on Export Competition.^Footnote4
2. The Parties share the objective of the multilateral elimination of export subsidies for agricultural goods and shall work together to prevent their reintroduction in any form.
3. A Party shall not adopt or maintain a measure on an agricultural good that is not consistent with the Nairobi WTO Ministerial Decision of 19 December 2015 on Export Competition.

Article 2.9: Transparency in Import Licensing Procedures

1. Each Party shall ensure that its import licensing procedures are implemented in a transparent and predictable manner, and applied in accordance with the Import Licensing Agreement.
2. Promptly after this Agreement enters into force, each Party shall notify the other Party of its existing import licensing procedures, if any. The notification shall include the information specified in Article 5.2 of the Import Licensing Agreement and any information required under paragraph 6.
3. A Party shall be deemed to be in compliance with the obligations in paragraph 2 with respect to an existing import licensing procedure if:
   1. it has notified that procedure to the WTO Committee on Import Licensing provided for in Article 4 of the Import Licensing Agreement together with the information specified in Article 5.2 of that agreement;
   2. it has provided with respect to that procedure the information requested in the annual questionnaire on import licensing procedures under Article 7.3 of the Import Licensing Agreement in its most recent annual submission to the WTO Committee on Import Licensing due before the date of entry into force of this Agreement for that Party; and
   3. it has included in either the notification described in subparagraph (a) or the annual submission described in subparagraph (b) any information required to be notified to the other Party under paragraph 6.
4. Each Party shall comply with Article 1.4(a) of the Import Licensing Agreement with respect to any new or modified import licensing procedure. Each Party shall also publish on an official government website any information that it is required to publish under Article 1.4(a) of the Import Licensing Agreement.
5. Each Party shall notify the other Party of any new import licensing procedures it adopts and any modifications it makes to its existing import licensing procedures, if possible, no later than 60 days before the new procedure or modification takes effect. A Party shall not provide the notification later than 60 days after the date of its publication. The notification shall include any information required under paragraph 6. A Party shall be deemed to be in compliance with this obligation, if it notifies a new import licensing procedure or a modification to an existing import licensing procedure to the WTO Committee on Import Licensing in accordance with Article 5.1, 5.2, or 5.3 of the Import Licensing Agreement, and includes in its notification any information required to be notified to the other Party under paragraph 6.
   1. A notice under paragraph 2, 3, or 5 shall state if, under any import licensing procedure that is a subject of the notice:
      1. the terms of an import licence for any product limit the permissible end users of the product; or
      2. the Party imposes any of the following conditions on eligibility for obtaining a licence to import any product:
         1. membership in an industry association;
         2. approval by an industry association of the request for an import licence;
         3. a history of importing the product or similar products;
         4. minimum importer or end user production capacity;
         5. minimum importer or end user registered capital; or
         6. a contractual or other relationship between the importer and a distributor in the Party’s territory.
   2. A notice under subparagraph (a), that states that there is a limitation on permissible end users or a licence-eligibility condition shall:
      1. list all products for which the end-user limitation or licence-eligibility condition applies; and
      2. describe the end-user limitation or licence-eligibility condition.
6. Each Party shall respond within 60 days to a reasonable enquiry from the other Party concerning its licensing rules and its procedures for the submission of an application for an import licence, including the eligibility of persons, firms, and institutions to make an application, the administrative body or bodies to be approached and the list of products subject to the licensing requirement.
7. If a Party denies an import licence application with respect to a good of the other Party, it shall, on request of the applicant and within a reasonable period after receiving the request, provide the applicant with a written explanation of the reason for the denial.
8. A Party shall not apply an import licensing procedure to a good of the other Party unless it has, with respect to that procedure, met the requirements of paragraph 2 or 4, as applicable.

Article 2.10: Transparency in Export Licensing Procedures

1. Within 30 days after the date of entry into force of this Agreement, each Party shall notify the other Party in writing of the publications in which its export licensing procedures, if any, are set out, including addresses of relevant government websites on which the procedures are published. Thereafter, each Party shall publish any new export licensing procedure, or any modification of an export licensing procedure it adopts, as soon as practicable but no later than 60 days after the new procedure or modification takes effect.
2. Each Party shall ensure that, the publications it notifies under paragraph 1 include:
   1. the texts of its export licensing procedures, including any modifications it makes to those procedures;
   2. the goods subject to each licensing procedure;
   3. for each procedure, a description of:
      1. the process for applying for a licence; and
      2. any criteria an applicant must meet to be eligible to seek a licence;
   4. a contact point or points from which interested persons can obtain further information on the conditions for obtaining an export licence;
   5. the administrative body or bodies to which an application or other relevant documentation should be submitted;
   6. a description of or a citation to a publication reproducing in full any measure or measures that the export licensing procedure implements;
   7. the period during which each export licensing procedure will be in effect, unless the procedure will remain in effect until withdrawn or revised in a new publication;
   8. if the Party intends to use a licensing procedure to administer an export quota, the overall quantity and, if practicable, the value of the quota, and the opening and closing dates of the quota; and
   9. any exemptions or exceptions available to the public that replace the requirement to obtain an export licence, how to request or use these exemptions or exceptions, and if applicable the criteria for them.
3. In accordance with its relevant laws and regulations, a Party shall provide the other Party, on the other Party’s request and to the extent practicable, the following information regarding a particular export licensing procedure that it adopts or maintains, except if doing so would reveal business proprietary or other confidential information of a particular person:
   1. the aggregate number of licences the Party has granted over a recent period specified in the other Party’s request; and
   2. measures, if any, that the Party has taken in conjunction with the licensing procedure to restrict domestic production or consumption or to stabilize production, supply, or prices for the relevant good.
4. This Article does not require a Party to grant an export licence.

Article 2.11: Customs User Fees

1. A Party shall not adopt or maintain a customs user fee or require consular transactions in connection with the importation or exportation of a good from the territory of the other Party.
2. Paragraph 1 does not prevent a Party from imposing a customs duty or a charge set out in paragraphs (a), (b), or (d) of the definition of “customs duty”.

Article 2.12: Exchange of Preference Utilization Data

1. For the purpose of monitoring the functioning of this Agreement and calculating preference utilization rates, the Parties shall annually exchange updated import statistics for a period starting one year after the date of entry into force of this Agreement until five years after the tariff elimination is completed. This period may be extended by decision of the Parties through the Committee on Trade in Goods.
2. The import statistics referred to in paragraph 1 shall include data pertaining to the most recent calendar year available, at the tariff line level for Chapters 1 through 97 of the HS, on imports of goods from the other Party that are subject to MFN-applied tariffs and tariff preferences under this Agreement, including information on value, and if applicable, volume and tariff-rate quotas’ fill rate.

Article 2.13: Trade in Products of Modern Biotechnology

1. The Parties recognise the importance of agricultural innovation and facilitating trade in products of modern biotechnology including transparency, cooperation, and the voluntary exchange of information related to the trade in products of modern biotechnology including policies, legislation, guidelines and good practices.
2. Nothing in this Article shall be construed to require a Party to authorize a product of modern biotechnology to be on the market.
3. Each Party shall, when available and subject to its laws, regulation or policy, make available to the public and, to the extent possible, online:
   1. information and documentation requirements for an authorization, if required, of a product of modern biotechnology;
   2. summary of risk or safety assessment, if any, that has led to the authorization, if required, of a product of modern biotechnology; and
   3. list of the products of modern biotechnology that have been authorized in its territory.
4. To reduce the likelihood of disruptions to trade in products of modern biotechnology:
   1. each Party shall continue to encourage applicants to submit timely and concurrent applications to the other Party for authorization, if required, of products of modern biotechnology; and
   2. a Party requiring any authorization for a product of modern biotechnology shall:
      1. accept and review applications for the authorization, if required, of products of modern biotechnology on an ongoing basis year-round;
      2. if an authorization is subject to expiration, take steps to help ensure that the review of the product is completed and decision is made in a timely manner, and if possible, prior to expiration; and
      3. communicate with the other Party regarding any new and existing authorizations of products of modern biotechnology, so as to improve information exchange.
5. Each Party shall endeavor to adopt or maintain policies and approaches designed to facilitate the management of an LLP occurrence.
6. The Parties shall pursue collaborative and trade-facilitative approaches to the management of an LLP occurrence.
7. In order to address an LLP occurrence, and with a view to preventing a future LLP occurrence, on request of an importing Party, an exporting Party shall, when available and subject to its laws, regulations and policies:
   1. provide summary of the risk or safety assessment or assessments, if any, that the exporting Party conducted in connection with an authorization of a specific plant product of modern biotechnology;
   2. provide, if known to the exporting Party, contact information for any entity within its territory that received authorization for the plant product of modern biotechnology and which the Party believes that it is likely to possess:
      1. validated methods that exist for the detection of the plant product of modern biotechnology found at a low level in a shipment;
      2. reference samples necessary for the detection of the LLP occurrence; and
      3. relevant information^Footnote5 that can be used by the importing Party to conduct a risk or safety assessment if appropriate, in accordance with the relevant international standards and guidelines; and
   3. encourage an entity referred to in subparagraph (b) to share the information referred to in sub-subparagraphs (b)(i), (b)(ii) and (b)(iii) with the importing Party.
8. In the event of an LLP occurrence, the importing Party shall, subject to its laws, regulation or policy:
   1. inform the importer or the importer’s agent of the LLP occurrence and of any additional information that the importer will be required to submit, to allow the importing Party to make a decision on the disposition of the shipment in which the LLP occurrence has been found;
   2. on request, and if available, provide to the exporting Party summary of risk or safety assessment that the importing Party has conducted in connection with the LLP occurrence;
   3. ensure that the measures applied to address that LLP occurrence are appropriate to achieve compliance with its laws, regulation or policy; and
   4. take into account, as appropriate, any relevant risk or safety assessment provided, and authorization granted, by the other Party or non-Party when deciding how to manage the LLP occurrence.

Article 2.14: Cooperation

1. The Parties recognise that cooperation under this Chapter may advance the inclusive, effective and efficient implementation and utilization of this Chapter through various activities between the Parties.
2. The Parties shall explore opportunities for cooperation relating to:
   1. products covered under Article 2.15, including policies related to LLP occurrences;
   2. innovative plants and plant varieties and the products derived therefrom;^Footnote6 and
   3. other matters, as agreed between the Parties.
3. For the purpose of subparagraphs 2(a) and 2(b), that cooperation may include:
   1. information sharing on domestic regulations, policies, and technical matters;
   2. collaborative dialogue on trade, emerging technologies, and regulatory streamlining; and
   3. efforts to advance transparent, science and risk-based regulatory approaches and trade policies with regional partners, non-Parties, and in international organizations.
4. The cooperation shall take into account, among other things, the different levels of development, existing bilateral cooperation and collaboration, availability of appropriate resources, and the national capacity of each Party.

Article 2.15: Committee on Trade in Goods

1. The Parties hereby establish a Committee on Trade in Goods (“Committee”), comprising representatives of each Party.
2. The Committee shall meet at the request of a Party or the Joint Committee, established under Article 23.1 (Administrative and Institutional Provisions – Establishment of the Joint Committee), to consider any matter arising under this Chapter.
3. The Committee shall meet at a venue and time as the Parties decide or by electronic means. Hosting responsibilities shall alternate between the Parties.
4. The Committee’s functions shall include:
   1. monitoring the implementation and administration of this Chapter;
   2. consulting on ways to improve market access between the Parties further to a request under Article 2.4.3;
   3. consulting on, and endeavour to resolving, any other issues relating to this Chapter, including, as appropriate, in coordination or jointly with other committees, subcommittees, working groups, or other bodies established under this Agreement;
   4. promptly seeking to address barriers to trade in goods between the Parties, including on agricultural goods other than those within the competence of other committees, subcommittees, working groups or any other bodies established under this Agreement and, if appropriate, referring the matter to the Joint Committee for its consideration;
   5. coordinating the exchange of information on trade in goods between the Parties;
   6. referring any relevant issues to other committees, subcommittees, working groups or any other bodies established under this Agreement and notifying the Joint Committee, as appropriate; and
   7. undertaking additional work that the Joint Committee may assign or another committee may refer to it.
5. Notwithstanding paragraph 2, for matters involving issues or trade barriers affecting perishable goods, the Committee shall meet within 30 days of a request by a Party or the Joint Committee and shall be composed of relevant representatives of each Party.

ANNEX 2-A: TARIFF COMMITMENTS

Section A: Staging Categories Applicable to The Parties

1. The classification of goods between the Parties is as set out in each Party’s respective tariff nomenclature in conformity with the Harmonized System (HS).
2. Except as otherwise provided in each Party’s Schedule to this Annex, the following staging categories apply to the elimination of customs duties by each Party pursuant to Article 2.4 (Elimination of Customs Duties on Imports):
   1. customs duties on originating goods provided for in the items in staging category EIF in each Party’s Schedule shall be eliminated entirely and these goods shall be duty-free on the date of entry into force of this Agreement;
   2. customs duties on originating goods provided for in the items in staging category NT1 in each Party’s Schedule shall be eliminated in five equal annual stages beginning on the date this Agreement enters into force, and these goods shall be duty-free effective January 1 of year five;
   3. customs duties on originating goods provided for in the items in staging category NT2 in a Party’s Schedule shall be eliminated in ten equal annual stages beginning on the date this Agreement enters into force, and these goods shall be duty-free effective January 1 of year ten;
   4. customs duties on originating goods provided for in the items in staging category NT3 in a Party’s Schedule shall be eliminated in fifteen equal annual stages beginning on the date this Agreement enters into force, and these goods shall be duty-free effective January 1 of year fifteen; and
   5. customs duties on originating goods provided for in the items in staging category EX are exempt from tariff commitments under Article 2.4 (Elimination of Customs Duties on Imports).
3. The base rate of customs duty for determining the interim staged rate of customs duty for a tariff item shall be those set out in each Party’s Schedule to this Annex, which are the most-favoured-nation rates of customs duty applied on April 1, 2022 for Indonesia, and January 1, 2022 for Canada.
4. For the purpose of the elimination of customs duties in accordance with Article 2.4 (Elimination of Customs Duties of Imports), interim staged rates shall be rounded down 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 hundredth of one Canadian cent in the case of Canada and the nearest Indonesian Rupiah in the case of Indonesia.
5. For the purposes of this Annex and each Party’s Schedule:
   1. the tariff reduction for year one shall take effect on the date this Agreement enters into force as provided for in Article 26.3 (Final Provisions – Entry into Force), with each subsequent annual stage of tariff reduction taking effect on January 1 of each subsequent year;
   2. year one means the period of time beginning on the date this Agreement enters into force as provided for in Article 26.3 (Final Provisions – Entry into Force) and ending on December 31 of the same calendar year as the date of entry into force;
   3. year two means the 12-month period beginning on January 1 of the calendar year immediately following the calendar year of the date of entry into force of this Agreement as provided for in Article 26. 3 (Final Provisions – Entry into Force); and
   4. each subsequent year means each subsequent 12-month period beginning on January 1 of each subsequent calendar year.
6. For the purpose of this Agreement:
   1. Canada’s Schedule is available in the English, French, and Indonesian languages;^Footnote7 and
   2. Indonesia’s Schedule is available in the Indonesian, English, and French languages.^Footnote8

Section B: Provisions Applicable only to Indonesia

This Section applies only to the Indonesia’s Schedule, which is attached to this Annex.

7. Customs duties on originating goods provided for in the items in staging category SL shall be reduced in ten equal annual stages beginning on the date this Agreement enters into force, and such goods shall be reduced by a total of 75% of the base rate, effective January 1 of year ten.
8. Interim staged rates and final customs duties rates shall be rounded down 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 Indonesian Rupiah.

Section C: Issuance of Import Permits

9. In accordance with the WTO Agreement, for originating goods imported into Indonesia and classified under Indonesian tariff items 0201.10.00, 0201.20.00, 0201.30.00, 0202.10.00, 0202.20.00, 0202.30.00, 0206.10.00, 0206.21.00, 0206.22.00, 0206.29.00, 0210.20.00, 0701.10.00, 0701.90.10, 0701.90.90, 1601.00.10, 1601.00.90, 1602.50.10, 1602.50.90, Indonesia shall issue import permits, or equivalent instruments used for import authorization, automatically and without seasonality.

Section D: Consultations on Tariff Acceleration

10. Pursuant to paragraph 3 of Article 2.4 (Elimination of Customs Duties on Imports), the Parties shall enter into consultations no later than three years after the date of entry into force of this Agreement and shall endeavor to conclude those consultations within five years of the date of entry into force of this Agreement.

APPENDIX I: TARIFF SCHEDULE OF CANADA

The provisions of this Schedule are generally expressed in terms of Canada’s Customs Tariff, and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of Canada’s Customs Tariff. To the extent that provisions of this Schedule are identical to the corresponding provisions of Canada’s Customs Tariff, the provisions of this Schedule shall have the same meaning as the corresponding provisions of Canada’s Customs Tariff.