1 AGREEMENT BETWEEN JAPAN AND THE REPUBLIC OF INDONESIA FOR AN ECONOMIC PARTNERSHIP Table of Contents Preamble Chapter 1 General Provisions Article 1 Objectives Article 2 General Definitions Article 3 Transparency Article 4 Public Comment Procedures Article 5 Administrativ e Procedures Article 6 Review and Appeal Article 7 Administrativ e Guidance Article 8 Measures against Corruption and Bribery Article 9 Confidential Information Article 10 Taxation Article 11 General and Security Exceptions Article 12 Relation to Other Agreements Article 13 Implementing Agreement Article 14 Joint Committee Article 15 Sub-Committees Article 16 Communications Chapter 2 Trade in Goods Article 17 Definitions Article 18 Classificatio n of Goods Article 19 National Treatment Article 20 Elimination of Customs Duties
Japan and the Republic of Indonesia (hereinafterreferred to as “Indonesia”),
Conscious of their longstanding friendship and strongpolitical and economic ties that have developed throughmany years of fruitful and mutually beneficial cooperationbetween the Parties;
Believing that such bilateral relationship will beenhanced by forging mutually beneficial economicpartnership through, inter alia, cooperation, trade andinvestment facilitation, and trade liberalization;
Reaffirming that the economic partnership will providea useful framework for enhanced cooperation and serve thecommon interests of the Parties in various fields as agreedin this Agreement and lead to the improvement of economicefficiency and the development of trade, investment andhuman resources;
Recognizing that such partnership would create largerand new market, and enhance the competitiveness,attractiveness and vibrancy of their markets;
Acknowledging that a dynamic and rapidly changingglobal environment brought about by globalization andtechnological progress presents various economic andstrategic challenges and opportunities to the Parties;
Recalling Article XXIV of the General Agreement onTariffs and Trade 1994 and Article V of the GeneralAgreement on Trade in Services in Annex 1A and Annex 1B,respectively, to the Marrakesh Agreement Establishing theWorld Trade Organization, done at Marrakesh, April 15,1994;
Bearing in mind the Framework for Comprehensive
Economic Partnership between Japan and the Association ofSoutheast Asian Nations (hereinafter referred to as“ASEAN”) signed in Bali, Indonesia on October 8, 2003;
Convinced that this Agreement would open a new era forthe relationship between the Parties; and
Determined to establish a legal framework for aneconomic partnership between the Parties;
(a) facilitate, promote and liberalize trade in goodsand services between the Parties;
(b) increase investment opportunities and promoteinvestment activities through strengtheningprotection for investments and investmentactivities in the Parties;
(c) ensure protection of intellectual property andpromote cooperation in the field thereof;
(d) enhance transparency of government procurementregimes of the Parties, and promote cooperationfor mutual benefits of the Parties in the fieldof government procurement;
(e) promote competition by addressing anti-competitive activities, and cooperate on thepromotion of competition;
(f) improve business environment in the Parties;
(g) establish a framework to enhance closercooperation in the fields agreed in thisAgreement; and
(h) create effective procedures for theimplementation and application of this Agreementand for the resolution of disputes.
Article 2
General Definitions
1. For the purposes of this Agreement:
(a) the term “Area” means:
(i) with respect to Japan, the territory ofJapan, and all the area beyond itsterritorial sea, including the sea-bed andsubsoil thereof, over which Japan exercisessovereign rights or jurisdiction inaccordance with international law and thelaws and regulations of Japan; and
(ii) with respect to Indonesia, the landterritories, territorial sea including sea-bed and subsoil thereof, archipelagicwaters, internal waters, airspace over such
territories, sea and waters, as well ascontinental shelf and exclusive economiczone, over which Indonesia has sovereignty,sovereign rights or jurisdiction, as definedin its laws, and in accordance with the United Nations Convention on the Law of theSea, done at Montego Bay, December 10, 1982;
(b) the term “customs authority” means the authoritythat is responsible for the administration andenforcement of customs laws and regulations. Inthe case of Japan, the Ministry of Finance, andin the case of Indonesia, the Directorate Generalof Customs and Excise;
(c) the term “GATS” means the General Agreement onTrade in Services in Annex 1B to the MarrakeshAgreement Establishing the World TradeOrganization, done at Marrakesh, April 15, 1994;
(d) the term “GATT 1994” means the General Agreementon Tariffs and Trade 1994 in Annex 1A to theMarrakesh Agreement Establishing the World TradeOrganization, done at Marrakesh, April 15, 1994.For the purposes of this Agreement, references toarticles in the GATT 1994 include theinterpretative notes;
(e) the term “Harmonized System” or “HS” means theHarmonized Commodity Description and CodingSystem set out in the Annex to the InternationalConvention on the Harmonized CommodityDescription and Coding System, and adopted andimplemented by the Parties in their respectivelaws;
(f) the term “Parties” means Japan and Indonesia andthe term “Party” means either Japan or Indonesia;and
(g) the term “WTO Agreement” means the MarrakeshAgreement Establishing the World TradeOrganization, done at Marrakesh, April 15, 1994.
2. Nothing in subparagraph 1(a) shall affect the rightsand obligations of the Parties under international law,including those under the United Nations Convention on theLaw of the Sea, done at Montego Bay, December 10, 1982.
1. Each Party shall make publicly available its laws and
regulations as well as international agreements to whichthe Party is a party, with respect to any matter covered bythis Agreement.
2. Each Party shall make available to the public, thenames and addresses of the competent authoritiesresponsible for laws and regulations referred to inparagraph 1.
3. Each Party shall, upon the request by the other Party,within a reasonable period of time, provide information tothe other Party with respect to matters referred to inparagraph 1.
4. When introducing or changing its laws and regulationsthat significantly affect the implementation and operationof this Agreement, each Party shall endeavor to takeappropriate measures to enable interested persons to becomeacquainted with such introduction or change.
Article 4Public Comment Procedures
The Government of each Party shall, in accordance withthe laws and regulations of the Party, endeavor to makepublic in advance regulations of general application thataffect any matter covered by this Agreement and to providea reasonable opportunity for comments by the public beforeadoption of such regulations.
Article 5Administrative Procedures
1. Where administrative decisions which pertain to oraffect the implementation and operation of this Agreement
are taken by the competent authorities of the Government ofa Party, the competent authorities shall, in accordancewith the laws and regulations of the Party, endeavor to:
(a) inform the applicant of the decision within areasonable period of time after the submission ofthe application considered complete under thelaws and regulations of the Party, taking intoaccount the established standard period of timereferred to in paragraph 3; and
(b) provide, within a reasonable period of time,information concerning the status of theapplication, at the request of the applicant.
2. The competent authorities of the Government of a Partyshall, in accordance with the laws and regulations of theParty, establish criteria for taking administrativedecisions in response to submitted applications. The
competent authorities shall endeavor to:
(a) make such criteria as specific as possible; and
(b) make such criteria publicly available except whenit would extraordinarily raise administrativedifficulties for the Government of the Party.
3. The competent authorities of the Government of a Partyshall, in accordance with the laws and regulations of theParty, endeavor to:
(a) establish standard periods of time between thereceipt of applications by the competentauthorities and the administrative decisionstaken in response to submitted applications; and
(b) make publicly available such periods of time, ifestablished.
4. The competent authorities of the Government of a Partyshall, in accordance with the laws and regulations of theParty, prior to any final decision which imposesobligations on or restricts rights of a person, endeavor toprovide that person with:
(a) a reasonable notice, including a description ofthe nature of the measure, specific provisionsupon which such measure will be based, and thefacts which may be a cause of taking suchmeasure; and
(b) a reasonable opportunity to present facts andarguments in support of position of such person,
provided that time, nature of the measure and publicinterest permit.
Article 6Review and Appeal
1. Each Party shall, in accordance with its laws andregulations, maintain judicial tribunals or procedures forthe purpose of prompt review and, where warranted,correction of actions taken by its Government regardingmatters covered by this Agreement. Such tribunals orprocedures shall be impartial and independent of theauthorities entrusted with the administrative enforcementof such actions.
2. Each Party shall ensure that the parties in any suchtribunals or procedures 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 submissionsof record.
3. Each Party shall ensure, subject to appeal or furtherreview as provided for in its laws and regulations, thatsuch decision is implemented by the relevant authoritieswith respect to the action at issue which is taken by itsGovernment.
Article 7Administrative Guidance
1. For the purposes of this Article, the term“administrative guidance” means any guidance,recommendation or advice by a competent authority of theGovernment of a Party which requires a person to do orrefrain from doing any act but does not create, imposelimitations on or in any way affect rights and obligationsof such person in order to pursue administrativeobjectives.
2. Where a competent authority of the Government of aParty renders administrative guidance with regard to anymatter covered by this Agreement, such competent authorityshall ensure that the administrative guidance does notexceed the scope of its competence and shall not requirethe person concerned to comply with the administrativeguidance without voluntary cooperation of such person.
3. Such competent authority shall ensure, in accordancewith the laws and regulations of its Party, that the personconcerned not be treated unfavourably solely on account ofnon-compliance of such person with such administrative
guidance.
4. Such competent authority shall, in accordance with thelaws and regulations of its Party, provide to the personconcerned in writing, upon the request of such person, thepurposes and contents of the administrative guidance.
Article 8Measures against Corruption and Bribery
Each Party shall, in accordance with its laws andregulations, take appropriate measures to prevent andcombat corruption and bribery regarding matters covered bythis Agreement.
1. Each Party shall, in accordance with its laws and
regulations, maintain the confidentiality of informationprovided in confidence by the other Party pursuant to thisAgreement.
2. Unless otherwise provided for in this Agreement,nothing in this Agreement shall require a Party to providethe other Party with confidential information, thedisclosure of which would impede the enforcement of thelaws and regulations of the former Party, or otherwise becontrary to the public interest of the former Party, orwhich would prejudice legitimate commercial interests ofparticular enterprises, public or private.
Article 10Taxation
1. Unless otherwise provided for in this Agreement, theprovisions of this Agreement shall not apply to anytaxation measures.
2. Nothing in this Agreement shall affect the rights andobligations of either Party under any tax convention inforce between the Parties. In the event of anyinconsistency between this Agreement and any suchconvention, that convention shall prevail to the extent ofthe inconsistency.
3. Articles 3 and 9 shall apply to taxation measures, tothe extent that the provisions of this Agreement areapplicable to such taxation measures.
Article 11General and Security Exceptions
1. For the purposes of Chapters 2, 3, 4, 5 other than
Article 66, and 8 of this Agreement, Articles XX and XXI ofthe GATT 1994 are incorporated into and form part of thisAgreement, mutatis mutandis.
2. For the purposes of Chapters 5 other than Article 66,6 and 7 of this Agreement, Articles XIV and XIV bis of theGATS are incorporated into and form part of this Agreement,mutatis mutandis.
3. In cases where a Party takes any measure pursuant toparagraph 1 or 2, that does not conform with theobligations under Chapter 5 other than Article 66, theParty shall make reasonable effort to notify the other
Party of the description of such measure either before themeasure is taken or as soon as possible thereafter.
4. For the purposes of Chapter 9 of this Agreement,Article 73 of the Agreement on Trade-Related Aspects ofIntellectual Property Rights in Annex 1C to the WTOAgreement (hereinafter referred to as “the TRIPSAgreement”) is incorporated into and forms part of thisAgreement, mutatis mutandis.
Article 12Relation to Other Agreements
1. The Parties reaffirm their rights and obligationsunder the WTO Agreement or any other agreements to whichboth Parties are parties.
2. In the event of any inconsistency between thisAgreement and the WTO Agreement, the WTO Agreement shallprevail to the extent of the inconsistency.
3. In the event of any inconsistency between thisAgreement and any agreements other than the WTO Agreement,to which both Parties are parties, the Parties shallimmediately consult with each other with a view to findinga mutually satisfactory solution, taking into considerationgeneral principles of international law.
Article 13Implementing Agreement
The Governments of the Parties shall conclude aseparate agreement setting forth the details and proceduresfor the implementation of this Agreement (hereinafterreferred to as “the Implementing Agreement”).
Article 14Joint Committee
1. A joint committee (hereinafter referred to as “theJoint Committee”) shall be hereby established.
2. The functions of the Joint Committee shall be:
(a) reviewing and monitoring the implementation andoperation of this Agreement;
(b) considering and recommending to the Parties anyamendments to this Agreement;
(c) supervising and coordinating the work of all Sub-
Committees established under this Agreement;
(d) adopting:
(i) the Operational Procedures for Trade inGoods and the Operational Procedures forRules of Origin, referred to in Article 27and Article 50, respectively; and
(ii) any necessary decisions; and
(e) carrying out other functions as the Parties mayagree.
3. The Joint Committee:
(a) shall be composed of representatives of theGovernments of the Parties; and
(b) may establish and delegate its responsibilitiesto Sub-Committees.
4. The Joint Committee shall establish its rules andprocedures.
5. The Joint Committee shall meet as such times as may beagreed by the Parties. The venue of the meeting shall bealternately in Japan and Indonesia, unless the Partiesagree otherwise.
Article 15Sub-Committees
1. The following sub-committees shall be herebyestablished:
(g) Sub-Committee on Energy and Mineral Resources;
(h) Sub-Committee on Intellectual Property;
(i) Sub-Committee on Government Procurement;
(j) Sub-Committee on Improvement of BusinessEnvironment and Promotion of Business Confidence;and
(k) Sub-Committee on Cooperation.
2. A Sub-Committee shall:
(a) be composed of representatives of the Governmentsof the Parties and may, by mutual consent of theParties, invite representatives of relevantentities other than the Governments of theParties with the necessary expertise relevant tothe issues to be discussed; and
(b) be co-chaired by officials of the Governments ofthe Parties.
3. A Sub-Committee shall meet at such times and venues asmay be agreed upon by the Parties.
4. A Sub-Committee may, as necessary, establish its rulesand procedures.
5. A Sub-Committee may establish and delegate itsresponsibilities to Working Groups.
Article 16Communications
Each Party shall designate a contact point tofacilitate communications between the Parties on any matterrelating to this Agreement.
Chapter 2Trade in Goods
Article 17Definitions
For the purposes of this Chapter:
(a) the term “bilateral safeguard measure” means abilateral safeguard measure provided for inparagraph 1 of Article 24;
(b) the term “customs value of goods” means the valueof goods for the purposes of levying ad valorem customs duties on imported goods;
(c) the term “domestic industry” means the producersas a whole of the like or directly competitivegoods operating in a Party, or those whosecollective output of the like or directlycompetitive goods constitutes a major proportionof the total domestic production of those goods;
(d) the term “export subsidies” means exportsubsidies listed in subparagraphs 1(a) through(f) of Article 9 of the Agreement on Agriculturein Annex 1A to the WTO Agreement (hereinafterreferred to in this Chapter as “the Agreement onAgriculture”);
(e) the term “originating goods” means goods whichqualify as originating goods under the provisionsof Chapter 3;
(f) the term “other duties or charges of any kind”means those provided for in subparagraph 1(b) ofArticle II of the GATT 1994;
(g) the term “provisional bilateral safeguardmeasure” means a provisional bilateral safeguardmeasure provided for in subparagraph 9(a) ofArticle 24;
(h) the term “serious injury” means a significantoverall impairment in the position of a domesticindustry; and
(i) the term “threat of serious injury” means seriousinjury that, on the basis of facts and not merelyon allegation, conjecture or remote possibility,is clearly imminent.
Article 18Classification of Goods
The classification of goods in trade between theParties shall be in conformity with the Harmonized System.
Article 19National Treatment
Each Party shall accord national treatment to thegoods of the other Party in accordance with Article III ofthe GATT 1994.
1. Except as otherwise provided for in this Agreement,
each Party shall eliminate or reduce its customs duties onoriginating goods of the other Party designated for suchpurposes in its Schedule in Annex 1, in accordance with theterms and conditions set out in such Schedule.
2. Upon the request of either Party, the Parties shallnegotiate on issues such as improving market accessconditions on originating goods designated for negotiationin the Schedule in Annex 1, in accordance with the termsand conditions set out in such Schedule.
3. Each Party shall eliminate other duties or charges ofany kind imposed on or in connection with the importationof goods of the other Party, if any. Neither Party shallintroduce other duties or charges of any kind imposed on orin connection with the importation of goods of the otherParty.
4. Nothing in this Article shall prevent a Party fromimposing, at any time, on the importation of any good ofthe other Party:
(a) a charge equivalent to an internal tax imposedconsistently with the provisions of paragraph 2of Article III of the GATT 1994, in respect ofthe like domestic good or in respect of a goodfrom which the imported good has beenmanufactured or produced in whole or in part;
(b) any anti-dumping or countervailing duty appliedconsistently with the provisions of Article VI ofthe GATT 1994, the Agreement on Implementation ofArticle VI of the General Agreement on Tariffsand Trade 1994 in Annex 1A to the WTO Agreement,and the Agreement on Subsidies and Countervailing
Measures in Annex 1A to the WTO Agreement; and
(c) fees or other charges commensurate with the costof services rendered.
5. If, as a result of the elimination or reduction ofits customs duty applied on a particular good on a most-favoured-nation basis, the most-favoured-nation appliedrate becomes equal to, or lower than, the rate of customsduty to be applied in accordance with paragraph 1 on theoriginating good which is classified under the same tariffline as that particular good, each Party shall notify theother Party of such elimination or reduction without delay.
6. In cases where its most-favoured-nation applied rateof customs duty on a particular good is lower than the rateof customs duty to be applied in accordance with paragraph1 on the originating good which is classified under the
same tariff line as that particular good, each Party shallapply the lower rate with respect to that originating good.
Article 21Customs Valuation
For the purposes of determining the customs value ofgoods traded between the Parties, provisions of Part I ofthe Agreement on Implementation of Article VII of theGeneral Agreement on Tariffs and Trade 1994 in Annex 1A tothe WTO Agreement (hereinafter referred to as “theAgreement on Customs Valuation”), shall apply mutatis
mutandis.
Article 22Export Subsidies
Neither Party shall introduce or maintain any exportsubsidies on any agricultural good which is listed in Annex1 to the Agreement on Agriculture.
Article 23Non-tariff Measures
Each Party shall not introduce or maintain any non-tariff measures on the importation of any good of the otherParty or on the exportation or sale for export of any gooddestined for the other Party which are inconsistent withits obligations under the WTO Agreement.
Article 24Bilateral Safeguard Measures
1. Subject to the provisions of this Article, each Partymay, as a bilateral safeguard measure, to the minimum
extent necessary to prevent or remedy the serious injury toa domestic industry of that Party and to facilitateadjustment:
(a) suspend the further reduction of any rate ofcustoms duty on the originating good provided forin this Chapter; or
(b) increase the rate of customs duty on theoriginating good to a level not to exceed thelesser of:
(i) the most-favoured-nation applied rate ofcustoms duty in effect at the time when thebilateral safeguard measure is taken; and
(ii) the most-favoured-nation applied rate ofcustoms duty in effect on the dayimmediately preceding the date of entry intoforce of this Agreement,
if an originating good of the other Party, as a result ofthe elimination or reduction of a customs duty inaccordance with Article 20, is being imported into theformer Party in such increased quantities, in absoluteterms or relative to domestic production, and under suchconditions that the imports of that originating goodconstitute a substantial cause of serious injury, or threatof serious injury, to a domestic industry of the formerParty.
2. Each Party shall not apply a bilateral safeguardmeasure on an originating good imported up to the limit ofquota quantities granted under tariff rate quotas appliedin accordance with its Schedule in Annex 1.
3. (a) A Party may take a bilateral safeguard measureonly after an investigation has been carried outby the competent authorities of that Party inaccordance with Article 3 and paragraph 2 ofArticle 4 of the Agreement on Safeguards in Annex1A to the WTO Agreement (hereinafter referred toin this Article as “the Agreement onSafeguards”).
(b) The investigation referred to in subparagraph (a)shall in all cases be completed within one yearfollowing its date of initiation.
4. The following conditions and limitations shall applywith regard to a bilateral safeguard measure:
(a) A Party shall immediately deliver a writtennotice to the other Party upon:
(i) initiating an investigation referred to insubparagraph 3(a) relating to seriousinjury, or threat of serious injury, and thereasons for it; and
(ii) taking a decision to apply or extend abilateral safeguard measure.
(b) The Party making the written notice referred toin subparagraph (a) shall provide the other Partywith all pertinent information, which shallinclude:
(i) in the written notice referred to insubparagraph (a)(i), the reason for theinitiation of the investigation, a precisedescription of the originating good subjectto the investigation and its subheading ofthe Harmonized System, the period subject tothe investigation and the date of initiationof the investigation; and
(ii) in the written notice referred to insubparagraph (a)(ii), evidence of seriousinjury or threat of serious injury caused bythe increased imports of the originatinggood, a precise description of theoriginating good subject to the proposedbilateral safeguard measure and itssubheading of the Harmonized System, aprecise description of the bilateralsafeguard measure, the proposed date of itsintroduction and its expected duration.
(c) A Party proposing to apply or extend a bilateralsafeguard measure shall provide adequateopportunity for prior consultations with theother Party with a view to reviewing theinformation arising from the investigationreferred to in subparagraph 3(a), exchangingviews on the bilateral safeguard measure andreaching an agreement on compensation set out inparagraph 5.
(d) No bilateral safeguard measure shall bemaintained except to the extent and for such timeas may be necessary to prevent or remedy serious
injury and to facilitate adjustment, providedthat such time shall not exceed a period of fouryears. However, in very exceptionalcircumstances, a bilateral safeguard measure maybe extended, provided that the total period ofthe bilateral safeguard measure, including suchextensions, shall not exceed five years. Inorder to facilitate adjustment in a situationwhere the expected duration of a bilateralsafeguard measure is over one year, the Partymaintaining the bilateral safeguard measure shallprogressively liberalize the bilateral safeguardmeasure at regular intervals during the period ofapplication.
(e) No bilateral safeguard measure shall be appliedagain to the import of a particular originatinggood which has been subject to such a bilateralsafeguard measure, for a period of time equal to
the duration of the previous bilateral safeguardmeasure or one year, whichever is longer.
(f) Upon the termination of a bilateral safeguardmeasure, the rate of customs duty shall be therate which would have been in effect but for thebilateral safeguard measure.
5. (a) A Party proposing to apply or extend a bilateralsafeguard measure shall provide to the otherParty mutually agreed adequate means of tradecompensation in the form of concessions ofcustoms duties whose levels are substantiallyequivalent to the value of the additional customsduties expected to result from the bilateralsafeguard measure.
(b) If the Parties are unable to agree on thecompensation within 30 days after thecommencement of the consultation pursuant tosubparagraph 4(c), the Party against whoseoriginating good the bilateral safeguard measureis taken shall be free to suspend the applicationof concessions of customs duties under thisAgreement, which are substantially equivalent tothe bilateral safeguard measure. The Partyexercising the right of suspension may suspendthe application of concessions of customs dutiesonly for the minimum period necessary to achievethe substantially equivalent effects and onlywhile the bilateral safeguard measure ismaintained.
6. Nothing in this Chapter shall prevent a Party fromapplying safeguard measures to an originating good in
accordance with:
(a) Article XIX of the GATT 1994 and the Agreement onSafeguards; or
(b) Article 5 of the Agreement on Agriculture.
7. Each Party shall ensure the consistent, impartial andreasonable administration of its laws and regulationsrelating to the bilateral safeguard measure.
8. Each Party shall adopt or maintain equitable, timely,transparent and effective procedures relating to thebilateral safeguard measure.
9. (a) In critical circumstances, where delay wouldcause damage which it would be difficult torepair, a Party may take a provisional bilateralsafeguard measure, which shall take the form ofthe measure set out in subparagraph 1(a) or (b)pursuant to a preliminary determination thatthere is clear evidence that increased imports ofan originating good have caused or arethreatening to cause serious injury to a domesticindustry.
(b) A Party shall deliver a written notice to theother Party prior to applying a provisionalbilateral safeguard measure. Consultationsbetween the Parties on the application of theprovisional bilateral safeguard measure shall beinitiated immediately after the provisionalbilateral safeguard measure is taken.
(c) The duration of the provisional bilateralsafeguard measure shall not exceed 200 days.During that period, the pertinent requirements ofparagraph 3 shall be met. The duration of theprovisional bilateral safeguard measure shall becounted as a part of the period referred to insubparagraph 4(d).
(d) Subparagraph 4(f) and paragraphs 7 and 8 shall beapplied mutatis mutandis to the provisionalbilateral safeguard measure. The customs dutyimposed as a result of the provisional bilateralsafeguard measure shall be refunded if thesubsequent investigation referred to insubparagraph 3(a) does not determine thatincreased imports of the originating good have
caused or threatened to cause serious injury to adomestic industry.
10. Written notice referred to in subparagraphs 4(a) and9(b) and any other communication between the Parties shallbe done in the English language.
11. The Parties shall review the provisions of thisArticle, if necessary, five years after the date of entryinto force of this Agreement, unless otherwise agreed bythe Parties.
Article 25Restrictions to Safeguard the Balance of Payments
1. Nothing in this Chapter shall be construed to prevent
a Party from taking any measure for balance-of-paymentspurposes. A Party taking such measure shall do so inaccordance with the conditions established under ArticleXII of the GATT 1994 and the Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffsand Trade 1994 in Annex 1A to the WTO Agreement.
2. Nothing in this Chapter shall preclude the use by aParty of exchange controls or exchange restrictions inaccordance with the Articles of Agreement of theInternational Monetary Fund.
Article 26Sub-Committee on Trade in Goods
For the purposes of the effective implementation andoperation of this Chapter, the functions of the Sub-Committee on Trade in Goods (hereinafter referred to inthis Article as “the Sub-Committee”) established inaccordance with Article 15 shall be:
(a) reviewing and monitoring the implementation andoperation of this Chapter;
(b) discussing any issues related to this Chapter;
(c) reporting the findings of the Sub-Committee tothe Joint Committee;
(d) reviewing and making appropriate recommendations,as necessary, to the Joint Committee on theOperational Procedures for Trade in Goodsreferred to in Article 27; and
(e) carrying out other functions as may be delegated
by the Joint Committee in accordance with Article14.
Article 27Operational Procedures for Trade in Goods
Upon the date of entry into force of this Agreement,the Joint Committee shall adopt the Operational Proceduresfor Trade in Goods that provide detailed regulationspursuant to which the relevant authorities of the Partiesshall implement their functions under this Chapter.
(a) the term “competent governmental authority” meansthe authority that, according to the legislationof each Party, is responsible for the issuing ofa certificate of origin or for the designation ofcertification entities or bodies. In the case ofJapan, the Ministry of Economy, Trade andIndustry and in the case of Indonesia, theMinistry of Trade;
(b) the term “exporter” means a person located in anexporting Party who exports a good from theexporting Party in accordance with the applicablelaws and regulations of the exporting Party;
(c) the term “factory ships of the Party” or “vesselsof the Party” respectively means factory ships orvessels:
(i) which are registered in the Party;
(ii) which sail under the flag of the Party;
(iii) which are owned to an extent of at least 50percent by nationals of the Parties, or by ajuridical person with its head office ineither Party, of which the representatives,chairman of the board of directors, and themajority of the members of such board arenationals of the Parties, and of which atleast 50 percent of the equity interest isowned by nationals or juridical persons of
the Parties; and
(iv) of which at least 75 percent of the total ofthe master, officers and crew are nationalsof the Parties;
(d) the term “fungible originating goods of a Party”or “fungible originating materials of a Party”respectively means originating goods or materialsof a Party that are interchangeable forcommercial purposes, whose properties areessentially identical;
(e) the term “Generally Accepted AccountingPrinciples” means the recognized consensus orsubstantial authoritative support within a Partyat a particular time as to which economic
resources and obligations should be recorded asassets and liabilities, which changes in assetsand liabilities should be recorded, how theassets and liabilities and changes in them shouldbe measured, what information should be disclosedand how it should be disclosed, and whichfinancial statements should be prepared. Thesestandards may be broad guidelines of generalapplication as well as detailed practices andprocedures;
(f) the term “importer” means a person who imports agood into the importing Party in accordance withthe applicable laws and regulations of theimporting Party;
(g) the term “indirect materials” means goods used inthe production, testing or inspection of anothergood but not physically incorporated into thegood, or goods used in the maintenance ofbuildings or the operation of equipmentassociated with the production of another good,including:
(i) fuel and energy;
(ii) tools, dies and moulds;
(iii) spare parts and goods used in themaintenance of equipment and buildings;
(iv) lubricants, greases, compounding materialsand other goods used in production or usedto operate equipment and buildings;
(v) gloves, glasses, footwear, clothing, safetyequipment and supplies;
(vi) equipment, devices and supplies used fortesting or inspection;
(vii) catalysts and solvents; and
(viii) any other goods that are not incorporatedinto another good but whose use in theproduction of the good can reasonably bedemonstrated to be a part of thatproduction;
(h) the term “material” means a good that is used inthe production of another good;
(i) the term “originating material of a Party” means
an originating good of a Party which is used inthe production of another good in the Party,including that which is considered as anoriginating material of the Party pursuant toparagraph 1 of Article 30;
(j) the term “packing materials and containers forshipment” means goods that are normally used toprotect a good during transportation, other thanpackaging materials and containers for retailsale referred to in Article 38;
(k) the term “preferential tariff treatment” meansthe rate of customs duties applicable to anoriginating good of the exporting Party inaccordance with paragraph 1 of Article 20; and
(l) the term “production” means a method of obtaininggoods including manufacturing, assembling,processing, raising, growing, breeding, mining,extracting, harvesting, fishing, trapping,gathering, collecting, hunting and capturing.
Article 29Originating Goods
1. Except as otherwise provided for in this Chapter, agood shall qualify as an originating good of a Party where:
(a) the good is wholly obtained or produced entirelyin the Party, as defined in paragraph 2;
(b) the good is produced entirely in the Partyexclusively from originating materials of theParty; or
(c) the good satisfies the product specific rules setout in Annex 2, as well as all other applicablerequirements of this Chapter, when the good isproduced entirely in the Party using non-originating materials.
2. For the purposes of subparagraph 1(a), the followinggoods shall be considered as being wholly obtained orproduced entirely in a Party:
(b) animals obtained by hunting, trapping, fishing,gathering or capturing in the Party;
(c) goods obtained from live animals in the Party;
(d) plants and plant products harvested, picked orgathered in the Party;
(e) minerals and other naturally occurringsubstances, not included in subparagraphs (a)through (d), extracted or taken in the Party;
(f) goods of sea-fishing and other goods taken byvessels of the Party from the sea outside theother Party;
(g) goods produced on board factory ships of theParty outside the other Party from the goodsreferred to in subparagraph (f);
(h) goods taken from the sea-bed or subsoil beneaththe sea-bed outside the Party, provided that theParty has rights to exploit such sea-bed orsubsoil;
(i) articles collected in the Party which can nolonger perform their original purpose in theParty nor are capable of being restored orrepaired and which are fit only for disposal orfor the recovery of parts or raw materials;
(j) scrap and waste derived from manufacturing orprocessing operations or from consumption in theParty and fit only for disposal or for therecovery of raw materials;
(k) parts or raw materials recovered in the Partyfrom articles which can no longer perform theiroriginal purpose nor are capable of being
restored or repaired; and
(l) goods obtained or produced in the Partyexclusively from the goods referred to insubparagraphs (a) through (k).
3. For the purposes of subparagraph 1(c), the productspecific rules set out in Annex 2 requiring that thematerials used undergo a change in tariff classification ora specific manufacturing or processing operation shallapply only to non-originating materials.
4. (a) For the purposes of subparagraph 1(c), theproduct specific rules set out in Annex 2 usingthe value-added method require that thequalifying value content of a good, calculated in
accordance with subparagraph (b), is not lessthan the percentage specified by the rule for thegood.
(b) For the purposes of calculating the qualifyingvalue content of a good, the following formulashall be applied:
F.O.B. – V.N.M.Q.V.C. = ------------------- x 100
F.O.B.
Where:
Q.V.C. is the qualifying value content of a good,expressed as a percentage;
F.O.B. is, except as provided for in paragraph 5,the free-on-board value of a good payable by thebuyer of the good to the seller of the good,regardless of the mode of shipment, not includingany internal excise taxes reduced, exempted, orrepaid when the good is exported; and
V.N.M. is the value of non-originating materialsused in the production of a good.
5. F.O.B. referred to in subparagraph 4(b) shall be thevalue:
(a) adjusted to the first ascertainable price paidfor a good from the buyer to the producer of thegood, if there is free-on-board value of thegood, but it is unknown and cannot beascertained; or
(b) determined in accordance with Articles 1 through8 of the Agreement on Customs Valuation, if thereis no free-on-board value of a good.
6. For the purposes of calculating the qualifying valuecontent of a good under subparagraph 4(b), the value of anon-originating material used in the production of the goodin a Party:
(a) shall be determined in accordance with theAgreement on Customs Valuation, and shall includefreight, insurance where appropriate, packing andall the other costs incurred in transporting the
material to the importation port in the Partywhere the producer of the good is located; or
(b) if such value is unknown and cannot beascertained, shall be the first ascertainableprice paid for the material in the Party, but mayexclude all the costs incurred in the Party intransporting the material from the warehouse ofthe supplier of the material to the place wherethe producer is located such as freight,insurance and packing as well as any other knownand ascertainable cost incurred in the Party.
7. For the purposes of calculating the qualifying valuecontent of a good under subparagraph 4(b) in determiningwhether the good qualifies as an originating good of aParty, V.N.M. of the good shall not include the value ofnon-originating materials used in the production oforiginating materials of the Party which are used in theproduction of the good.
8. For the purposes of subparagraph 5(b) or 6(a), inapplying the Agreement on Customs Valuation to determinethe value of a good or non-originating material, theAgreement on Customs Valuation shall apply mutatis mutandis to domestic transactions or to the cases where there is notransaction of the good or non-originating material.
Article 30Accumulation
1. For the purposes of determining whether a goodqualifies as an originating good of a Party, an originatinggood of the other Party which is used as a material in theproduction of the good in the former Party may be
considered as an originating material of the former Party.
2. For the purposes of calculating the qualifying valuecontent of a good under subparagraph 4(b) of Article 29 indetermining whether the good qualifies as an originatinggood of a Party, the value of a non-originating materialproduced in either Party and to be used in the productionof the good may be limited to the value of non-originatingmaterials used in the production of such non-originatingmaterial, provided that the good qualifies as anoriginating good of that Party under subparagraph 1(c) ofArticle 29.
For the application of the product specific rules set
out in Annex 2, non-originating materials used in theproduction of a good that do not satisfy an applicable rulefor the good, shall be disregarded, provided that thetotality of such materials does not exceed specificpercentages in value, weight or volume of the good and suchpercentages are set out in the product specific rule forthe good.
Article 32Non-qualifying Operations
A good shall not be considered to satisfy therequirement of change in tariff classification or specificmanufacturing or processing operation set out in Annex2 merely by reason of:
(a) operations to ensure the preservation of productsin good condition during transport and storage(such as drying, freezing, keeping in brine) andother similar operations;
(b) changes of packaging and breaking up and assemblyof packages;
(c) disassembly;
(d) placing in bottles, cases, boxes and other simplepackaging operations;
(e) collection of parts and components classified asa good pursuant to Rule 2(a) of the General Rulesfor the Interpretation of the Harmonized System;
(f) mere making-up of sets of articles; or
(g) any combination of operations referred to insubparagraphs (a) through (f).
Article 33Consignment Criteria
1. An originating good of the other Party shall be deemedto meet the consignment criteria when it is:
(b) transported through one or more non-Parties forthe purpose of transit or temporary storage inwarehouses in such non-Parties, provided that itdoes not undergo operations other than unloading,
reloading and any other operation to preserve itin good condition.
2. If an originating good of the other Party does notmeet the consignment criteria referred to in paragraph 1,that good shall not be considered as an originating good ofthe other Party.
Article 34Unassembled or Disassembled Goods
1. Where a good satisfies the requirements of therelevant provisions of Articles 29 through 32 and isimported into a Party from the other Party in anunassembled or disassembled form but is classified as anassembled good pursuant to Rule 2(a) of the General Rulesfor the Interpretation of the Harmonized System, such agood shall be considered as an originating good of theother Party.
2. A good assembled in a Party from unassembled ordisassembled materials, which were imported into the Partyand classified as an assembled good pursuant to Rule 2(a)of the General Rules for the Interpretation of theHarmonized System, shall be considered as an originatinggood of the Party, provided that the good would havesatisfied the applicable requirements of the relevantprovisions of Articles 29 through 32 had each of the non-originating materials among the unassembled or disassembledmaterials been imported into the Party separately and notas an unassembled or disassembled form.
Article 35Fungible Goods and Materials
1. For the purposes of determining whether a goodqualifies as an originating good of a Party, where fungibleoriginating materials of the Party and fungible non-originating materials that are commingled in an inventoryare used in the production of the good, the origin of thematerials may be determined pursuant to an inventorymanagement method under the Generally Accepted AccountingPrinciples in the Party.
2. Where fungible originating goods of a Party andfungible non-originating goods are commingled in aninventory and, prior to exportation do not undergo anyproduction process or any operation in the Party where they
were commingled other than unloading, reloading and anyother operation to preserve them in good condition, theorigin of the good may be determined pursuant to aninventory management method under the Generally AcceptedAccounting Principles in the Party.
Article 36Indirect Materials
Indirect materials shall be, without regard to wherethey are produced, considered to be originating materialsof a Party where the good is produced.
Article 37Accessories, Spare Parts and Tools
1. In determining whether all the non-originatingmaterials used in the production of a good undergo theapplicable change in tariff classification or a specificmanufacturing or processing operation set out in Annex 2,accessories, spare parts or tools delivered with the goodthat form part of the good's standard accessories, spareparts or tools, shall be disregarded, provided that:
(a) the accessories, spare parts or tools are notinvoiced separately from the good, without regardof whether they are separately described in theinvoice; and
(b) the quantities and value of the accessories,spare parts or tools are customary for the good.
2. If a good is subject to a qualifying value contentrequirement, the value of the accessories, spare parts ortools shall be taken into account as the value of
originating materials of a Party where the good is producedor non-originating materials, as the case may be, incalculating the qualifying value content of the good.
Article 38Packaging Materials and Containers for Retail Sale
1. In determining whether all the non-originating
materials used in the production of a good undergo theapplicable change in tariff classification or a specificmanufacturing or processing operation set out in Annex 2,packaging materials and containers for retail sale, whichare classified with the good pursuant to Rule 5 of theGeneral Rules for the Interpretation of the HarmonizedSystem, shall be disregarded.
2. If a good is subject to a qualifying value contentrequirement, the value of packaging materials andcontainers for retail sale shall be taken into account asthe value of originating materials of a Party where thegood is produced or non-originating materials, as the casemay be, in calculating the qualifying value content of thegood.
Article 39Packing Materials and Containers for Shipment
Packing materials and containers for shipment shallbe:
(a) disregarded in determining whether all the non-originating materials used in the production of agood undergo the applicable change in tariffclassification or a specific manufacturing orprocessing operation set out in Annex 2; and
(b) without regard to where they are produced,considered to be originating materials of a Partywhere the good is produced, in calculating thequalifying value content of the good.
Article 40Claim for Preferential Tariff Treatment
1. The importing Party shall require a certificate oforigin for an originating good of the exporting Party fromimporters who claim the preferential tariff treatment forthe good.
2. Notwithstanding paragraph 1, the importing Party shallnot require a certificate of origin from importers for animportation of a consignment of originating goods of theexporting Party whose aggregate customs value does notexceed 200 United States dollars or its equivalent amountin the Party’s currency, or such higher amount as it mayestablish.
3. Where an originating good of the exporting Party isimported through one or more non-Parties, the importingParty may require importers, who claim the preferentialtariff treatment for the good, to submit:
(a) a copy of through bill of lading; or
(b) a certificate or any other information given bythe customs authorities of such non-Parties orother relevant entities, which evidences that thegood has not undergone operations other thanunloading, reloading and any other operation topreserve it in good condition in those non-Parties.
Article 41Certificate of Origin
1. A certificate of origin referred to in paragraph 1 ofArticle 40 shall be issued by the competent governmentalauthority of the exporting Party on request having beenmade in writing by the exporter or its authorized agent.Such certificate of origin shall include minimum dataspecified in Annex 3.
2. For the purposes of this Article, the competentgovernmental authority of the exporting Party may designateother entities or bodies to be responsible for the issuanceof certificate of origin, under the authorization given inaccordance with the applicable laws and regulations of theexporting Party.
3. Where the competent governmental authority of theexporting Party designates other entities or bodies tocarry out the issuance of certificate of origin, theexporting Party shall notify in writing the other Party ofits designees.
4. For the purposes of this Chapter, upon the entry into
force of this Agreement, the Parties shall establish aformat of certificate of origin in the English language inthe Operational Procedures for Rules of Origin referred toin Article 50.
5. A certificate of origin shall be completed in theEnglish language.
6. An issued certificate of origin shall be applicable toa single importation of an originating good of theexporting Party into the importing Party and be valid for12 months from the date of issuance.
7. Where the exporter of a good is not the producer ofthe good in the exporting Party, the exporter may request acertificate of origin on the basis of:
(a) a declaration provided by the exporter to thecompetent governmental authority of the exportingParty or its designees based on the informationprovided by the producer of the good to thatexporter; or
(b) a declaration voluntarily provided by theproducer of the good directly to the competentgovernmental authority of the exporting Party orits designees by the request of the exporter inaccordance with the applicable laws andregulations of the exporting Party.
8. A certificate of origin shall be issued only after theexporter who requests the certificate of origin, or theproducer of a good in the exporting Party referred to insubparagraph 7(b), proves to the competent governmentalauthority of the exporting Party or its designees that thegood to be exported qualifies as an originating good of theexporting Party.
9. The competent governmental authority of the exportingParty shall provide the other Party with specimensignatures and impressions of stamps used in the offices ofthe competent governmental authority or its designees.
10. Each Party shall ensure that the competentgovernmental authority or its designees shall keep a recordof issued certificate of origin for a period of five yearsafter the date on which the certificate was issued. Suchrecord will include all antecedents, which were presentedto prove the qualification as an originating good of theexporting Party.
Article 42
Obligations regarding Exportations
Each Party shall, in accordance with its laws andregulations, ensure that the exporter to whom a certificateof origin has been issued, or the producer of a good inthe exporting Party referred to in subparagraph 7(b) ofArticle 41:
(a) shall notify in writing the competentgovernmental authority of the exporting Party orits designees without delay when such exporter orproducer knows that such good does not qualify as
an originating good of the exporting Party; and
(b) shall keep the records relating to the origin ofthe good for five years after the date on whichthe certificate of origin was issued.
Article 43Request for Checking of Certificate of Origin
1. For the purposes of determining whether a goodimported from the exporting Party under preferential tarifftreatment qualifies as an originating good of the exportingParty, the customs authority of the importing Party mayrequest information relating to the origin of the good fromthe competent governmental authority of the exporting Partyon the basis of the certificate of origin.
2. For the purposes of paragraph 1, the competentgovernmental authority of the exporting Party shall, inaccordance with the laws and regulations of the Party,provide the information requested in a period not exceedingsix months after the date of receipt of the request.
If the customs authority of the importing Partyconsiders necessary, it may require additional informationrelating to the origin of the good. If additionalinformation is requested by the customs authority of theimporting Party, the competent governmental authority ofthe exporting Party shall, in accordance with the laws andregulations of the exporting Party, provide the informationrequested in a period not exceeding four months after thedate of receipt of the request.
3. For the purposes of paragraph 2, the competentgovernmental authority of the exporting Party may request
the exporter to whom the certificate of origin has beenissued, or the producer of the good in the exporting Partyreferred to in subparagraph 7(b) of Article 41, to providethe former with the information requested.
Article 44Verification Visit
1. If the customs authority of the importing Party is notsatisfied with the outcome of the request for checkingpursuant to Article 43, it may request the exporting Party:
(a) to collect and provide information relating tothe origin of the good and check, for thatpurpose, the facilities used in the production ofthe good, through a visit by the competent
governmental authority of the exporting Partyalong with the customs authority of the importingParty, which may be accompanied by othergovernment officials with necessary expertise ofthe importing Party, to the premises of theexporter to whom the certificate of origin hasbeen issued, or the producer of the good in theexporting Party referred to in subparagraph 7(b)of Article 41; and
(b) during or after the visit, to provide informationrelating to the origin of the good in thepossession of the competent governmentalauthority of the exporting Party or itsdesignees.
2. When requesting the exporting Party to conduct a visitpursuant to paragraph 1 or 6, the customs authority of theimporting Party shall deliver a written communication withsuch request to the exporting Party at least 40 days inadvance of the proposed date of the visit, the receipt ofwhich is to be confirmed by the exporting Party. Thecompetent governmental authority of the exporting Partyshall request the written consent of the exporter, or theproducer of the good in the exporting Party, whose premisesare to be visited.
3. The communication referred to in paragraph 2 shallinclude:
(a) the identity of the customs authority of theimporting Party issuing the communication;
(b) the name of the exporter, or the producer of thegood in the exporting Party, whose premises are
requested to be visited;
(c) the proposed date and place of the visit;
(d) the objective and scope of the proposed visit,including specific reference to the good subjectof the verification referred to in thecertificate of origin; and
(e) the names and titles of the officials of thecustoms authority and other government officialswith necessary expertise of the importing Partyto be present during the visit.
4. The exporting Party shall respond in writing to theimporting Party, within 30 days of the receipt of thecommunication referred to in paragraph 2, if it accepts orrefuses to conduct the visit requested pursuant to
paragraph 1 or 6.
5. The competent governmental authority of the exportingParty shall, in accordance with the laws and regulations ofthe Party, provide within 45 days or any other mutuallyagreed period from the last day of the visit, to thecustoms authority of the importing Party the informationobtained pursuant to paragraph 1 or 6.
6. (a) In cases where the customs authority of theimporting Party considers as exceptional, thatcustoms authority may, before or during therequest for checking referred to in Article 43,put forward the exporting Party a requestreferred to in paragraph 1.
(b) Where the request referred to in subparagraph (a)is made, Article 43 shall not be applied.
Article 45Determination of Origin
and Preferential Tariff Treatment
1. The customs authority of the importing Party may denypreferential tariff treatment to a good for which animporter claims preferential tariff treatment where thegood does not qualify as an originating good of theexporting Party or where the importer fails to comply withany of the relevant requirements of this Chapter.
2. The competent governmental authority of the exportingParty shall, when it cancels the decision to issue thecertificate of origin, promptly notify the cancellation tothe exporter to whom the certificate of origin has beenissued, and to the customs authority of the importing Party
except where the certificate has been returned to thecompetent governmental authority. The customs authority ofthe importing Party may determine that the good does notqualify as an originating good of the exporting Party andmay deny preferential tariff treatment where it receivesthe notification.
3. The customs authority of the importing Party maydetermine that a good does not qualify as an originatinggood of the exporting Party and may deny preferentialtariff treatment, and a written determination thereof shallbe sent to the competent governmental authority of theexporting Party:
(a) where the competent governmental authority of theexporting Party fails to respond to the requestwithin the period referred to in paragraph 2 ofArticle 43 or paragraph 5 of Article 44;
(b) where the exporting Party refuses to conduct avisit, or that Party fails to respond to thecommunication referred to in paragraph 2 ofArticle 44 within the period referred to inparagraph 4 of Article 44; or
(c) where the information provided to the customsauthority of the importing Party pursuant toArticle 43 or 44, is not sufficient to prove thatthe good qualifies as an originating good of theexporting Party.
4. After carrying out the procedures outlined in Article43 or 44 as the case may be, the customs authority of theimporting Party shall provide the competent governmentalauthority of the exporting Party with a writtendetermination of whether or not the good qualifies as anoriginating good of the exporting Party, including findingsof fact and the legal basis for the determination. Thecompetent governmental authority of the exporting Partyshall inform such determination by the customs authority ofthe importing Party to the exporter, or the producer of thegood in the exporting Party, whose premises were subject tothe visit referred to in Article 44.
Article 46Confidentiality
1. Each Party shall maintain, in accordance with its lawsand regulations, the confidentiality of informationprovided to it as confidential pursuant to this Chapter,and shall protect that information from disclosure thatcould prejudice the competitive position of the personsproviding the information.
2. Information obtained by the customs authority of theimporting Party pursuant to this Chapter:
(a) may only be used by such authority for thepurposes of this Chapter; and
(b) shall not be used by the importing Party in anycriminal proceedings carried out by a court or ajudge, unless the information is requested to theexporting Party and provided to the importingParty, through the diplomatic channels or otherchannels established in accordance with theapplicable laws of the exporting Party.
Article 47Penalties and Measures against False Declaration
1. Each Party shall establish or maintain, in accordance
with its laws and regulations, appropriate penalties orother sanctions against its exporters to whom a certificateof origin has been issued and the producers of the good inthe exporting Party referred to in subparagraph 7(b) ofArticle 41, for providing false declaration or documents tothe competent governmental authority of the exporting Partyor its designees prior to the issuance of certificate oforigin.
2. Each Party shall, in accordance with its laws andregulations, take measures which it considers appropriateagainst its exporters to whom a certificate of origin hasbeen issued and the producers of the good in the exportingParty referred to in subparagraph 7(b) of Article 41, forfailing to notify in writing to the competent governmentalauthority of the exporting Party or its designees withoutdelay after having known, after the issuance of certificateof origin, that such good does not qualify as anoriginating good of the exporting Party.
Article 48Miscellaneous
1. Communications between the importing Party and theexporting Party shall be conducted in the English language.
2. For the application of the relevant product specificrules set out in Annex 2 and the determination of origin,the Generally Accepted Accounting Principles in theexporting Party shall be applied.
Article 49Sub-Committee on Rules of Origin
For the purposes of the effective implementation and
operation of this Chapter, the functions of the Sub-Committee on Rules of Origin (hereinafter referred to inthis Article as “the Sub-Committee”) established inaccordance with Article 15 shall be:
(a) reviewing and making appropriate recommendations,as necessary, to the Joint Committee on:
(i) the implementation and operation of thisChapter;
(ii) any amendments to Annex 2 or 3, proposed byeither Party; and
(iii) the Operational Procedures for Rules ofOrigin referred to in Article 50;
(b) discussing any issues related to this Chapter;
(c) reporting the findings of the Sub-Committee tothe Joint Committee; and
(d) carrying out other functions as may be delegatedby the Joint Committee in accordance with Article14.
Article 50Operational Procedures for Rules of Origin
Upon the date of entry into force of this Agreement,the Joint Committee shall adopt the Operational Proceduresfor Rules of Origin that provide detailed regulationspursuant to which the customs authorities, the competentgovernmental authorities and other relevant authorities ofthe Parties shall implement their functions under thisChapter.
Chapter 4Customs Procedures
Article 51Scope
1. This Chapter shall apply to customs proceduresrequired for the clearance of goods traded between theParties.
2. This Chapter shall be implemented by the Parties inaccordance with the laws and regulations of each Party andwithin the competence and available resources of theirrespective customs authorities.
Article 52
Definition
For the purposes of this Chapter, the term “customslaws” means the statutory and regulatory provisionsrelating to the importation, exportation, movement orstorage of goods, the administration and enforcement ofwhich are specifically charged to the customs authority ofeach Party, and any regulations made by the customsauthority of each Party under its statutory power.
1. Each Party shall ensure that all relevant information
of general application pertaining to its customs laws ispublicly available.
2. When information that has been made available must beamended due to changes in its customs laws, each Partyshall endeavor to make the revised information readilyavailable sufficiently in advance of the entry into forceof the changes to enable interested persons to take accountof them, unless advance notice is precluded.
3. Each Party shall, wherever appropriate, provide, asquickly and as accurately as possible, information relatingto the specific customs matters raised by any interestedperson of the Parties and pertaining to its customs laws.The Party shall endeavor to supply any other pertinentinformation which it considers the interested person shouldbe made aware of.
Article 54Customs Clearance
1. Both Parties shall apply their respective customsprocedures in a predictable, consistent and transparentmanner.
2. For the accomplishment of the purposes of paragraph 1,each Party shall:
(a) make use of information and communicationstechnology;
(b) simplify its customs procedures;
(c) harmonize its customs procedures, as far aspossible, with relevant international standards
and recommended practices such as those madeunder the auspices of the Customs Co-operationCouncil; and
(d) promote cooperation, wherever appropriate,between its customs authority and:
3. Each Party shall provide affected parties withaccessible processes of administrative and judicial reviewin relation to the action concerning the customs matterstaken by the Party.
Article 55Cooperation and Exchange of Information
1. The Parties shall cooperate and exchange informationwith each other, in the field of customs procedures,including their enforcement against the trafficking ofrestricted and prohibited goods and the importation andexportation of goods suspected of infringing intellectualproperty rights.
2. Such cooperation and exchange of information shall beimplemented as provided for in the Implementing Agreement.
Article 56Sub-Committee on Customs Procedures
1. For the purposes of the effective implementation andoperation of this Chapter, the functions of the Sub-Committee on Customs Procedures (hereinafter referred to inthis Article as “the Sub-Committee”) established inaccordance with Article 15 shall be:
(a) reviewing the implementation and operation ofthis Chapter;
(b) identifying areas, relating to this Chapter, tobe improved for facilitating trade between theParties;
(c) reporting the findings of the Sub-Committee tothe Joint Committee; and
(d) carrying out other functions as may be delegatedby the Joint Committee in accordance with Article
14.
2. Further to paragraph 2 of Article 15, the compositionof the Sub-Committee shall be specified in the ImplementingAgreement.
1. This Chapter shall apply to measures adopted ormaintained by a Party relating to:
(a) investors of the other Party; and
(b) investments of investors of the other Party inthe Area of the former Party.
2. In the event of any inconsistency between this Chapterand Chapter 6:
(a) with respect to matters covered by Articles 59,60 and 63, Chapter 6 shall prevail to the extentof inconsistency; and
(b) with respect to matters not falling undersubparagraph (a), this Chapter shall prevail tothe extent of inconsistency.
3. This Chapter shall not apply to measures affecting themovement of natural persons of a Party.
Article 58Definitions
For the purposes of this Chapter:
(a) the term “enterprise” means any legal person orany other entity duly constituted or organizedunder applicable laws and regulations, whetherfor profit or otherwise, and whether privately-owned or controlled or governmentally-owned orcontrolled, including any corporation, trust,
partnership, joint venture, sole proprietorship,organization or company;
(b) an enterprise is:
(i) “owned” by an investor if more than 50percent of the equity interests in it isbeneficially owned by the investor; and
(ii) “controlled” by an investor if the investorhas the power to name a majority of itsdirectors or otherwise to legally direct itsactions;
(c) the term “enterprise of the other Party” means anenterprise constituted or organized under theapplicable laws and regulations of the otherParty;
(d) the term “financial services” means financialservices as defined in subparagraph 2(a)(i) ofSection 1 of Annex 7;
(e) the term “freely convertible currencies” meanscurrencies which are, in fact, widely used tomake payments for international transactions andare widely traded in the principal exchangemarkets;
(f) the term “investments” means every kind of assetinvested by an investor, in accordance withapplicable laws and regulations, including,though not exclusively:
(i) an enterprise and a branch of an enterprise;
(ii) shares, stocks or other forms of equityparticipation in an enterprise, includingrights derived therefrom;
(iii) bonds, debentures, loans and other forms ofdebt, including rights derived therefrom;
(iv) rights under contracts, including turnkey,construction, management, production orrevenue-sharing contracts;
(v) claims to money and claims to anyperformance under contract having afinancial value;
(vi) intellectual property rights, includingcopyrights, patent rights and rights
relating to utility models, trademarks,industrial designs, layout-designs ofintegrated circuits, new varieties ofplants, trade names, indications of sourceor geographical indications and undisclosedinformation;
(vii) rights conferred pursuant to laws andregulations or contracts such asconcessions, licenses, authorizations andpermits; and
(viii) any other tangible and intangible, movableand immovable property, and any relatedproperty rights, such as leases, mortgages,liens and pledges;
Note 1: Investments also include amounts yielded byinvestments, in particular, profit, interest,capital gains, dividends, royalties and fees.A change in the form in which assets areinvested does not affect their character asinvestments.
Note 2: For the purposes of subparagraphs (ii) and(iii), a Party may, on a non-discriminatorybasis, exclude portfolio investments whichare determined by the use of the non-discriminatory and objective criteria adoptedby the Party.
(g) the term “investment activities” meansestablishment, acquisition, expansion,management, conduct, operation, maintenance, use,enjoyment and sale or other disposition ofinvestments;
(h) the term “investor of the other Party” means anational or an enterprise of the other Party;
(i) the term “national of the other Party” means anatural person having the nationality of theother Party in accordance with the applicablelaws and regulations of the other Party;
(j) the term “New York Convention” means the UnitedNations Convention on the Recognition andEnforcement of Foreign Arbitral Awards, done atNew York, June 10, 1958; and
(k) the term “transfers” means transfers and
international payments.
Article 59National Treatment
1. Each Party shall accord to investors of the otherParty and to their investments treatment no less favourablethan that it accords in like circumstances to its owninvestors and to their investments with respect toinvestment activities.
2. Notwithstanding paragraph 1, each Party may prescribespecial formalities in connection with investmentactivities of investors of the other Party in its Area,provided that such formalities do not materially impair the
protection afforded by the former Party to investors of theother Party and to their investments pursuant to thisChapter.
Article 60Most-Favoured-Nation Treatment
Each Party shall accord to investors of the otherParty and to their investments treatment no less favourablethan that it accords in like circumstances to investors ofa non-Party and to their investments with respect toinvestment activities.
Article 61General Treatment
Each Party shall accord to investments of investors ofthe other Party fair and equitable treatment and fullprotection and security.
Article 62Access to the Courts of Justice
Each Party shall in its Area accord to investors ofthe other Party treatment no less favourable than that itaccords in like circumstances to its own investors orinvestors of a non-Party, with respect to access to itscourts of justice and administrative tribunals and agenciesin all degrees of jurisdiction, both in pursuit and indefense of such investors’ rights.
Article 63Prohibition of Performance Requirements
1. Neither Party shall impose or enforce any of the
following requirements, in connection with investmentactivities in its Area of an investor of the other Party:
(a) to export a given level or percentage of goods orservices;
(b) to achieve a given level or percentage ofdomestic content;
(c) to purchase, use or accord a preference to goodsproduced or services provided in its Area, or topurchase goods or services from natural or legalpersons or any other entity in its Area;
(c) the continuation or prompt renewal of any non-conforming measure referred to in subparagraphs(a) and (b); or
(d) an amendment or modification to any non-conforming measure referred to in subparagraphs(a) and (b), provided that the amendment ormodification does not decrease the conformity ofthe measure, as it existed immediately before theamendment or modification, with Articles 59, 60and 63.
2. Each Party shall, on the date of entry into force ofthis Agreement, notify the other Party of the followinginformation on any non-conforming measure referred to insubparagraph 1(a):
(a) the sector or matter, with respect to which themeasure is maintained;
(b) the domestic or international industryclassification codes, where applicable, to whichthe measure relates;
(c) the level of the government which maintains themeasure;
(d) the obligations under this Agreement with whichthe measure does not conform;
(e) the legal source of the measure; and
(f) the succinct description of the measure.
3. Articles 59, 60 and 63 shall not apply to any measurethat a Party adopts or maintains with respect to thesectors or matters specified in Annex 5.
4. Where a Party maintains any non-conforming measure on
the date of entry into force of this Agreement with respectto the sectors or matters specified in Annex 5, the Partyshall, on the same date, notify the other Party of thefollowing information on the measure:
(a) the sector or matter, with respect to which themeasure is maintained;
(b) the domestic or international industryclassification codes, where applicable, to whichthe measure relates;
investments in its Area of investors of the other Party ortake any measure tantamount to expropriation ornationalization (hereinafter referred to in this Chapter as“expropriation”) except:
(a) for a public purpose;
(b) on a non-discriminatory basis;
(c) in accordance with due process of law and Article61; and
(d) upon payment of prompt, adequate and effectivecompensation pursuant to paragraphs 2 through 4.
2. The compensation shall be equivalent to the fairmarket value of the expropriated investments at the timewhen the expropriation was publicly announced or when theexpropriation occurred, whichever is the earlier. The fairmarket value shall not reflect any change in market valueoccurring because the expropriation had become publiclyknown earlier.
3. The compensation shall be paid without delay and shallinclude interest at a commercially reasonable rate takinginto account the length of time from the time ofexpropriation to the time of payment. It shall beeffectively realizable and freely transferable and shall befreely convertible, at the market exchange rate prevailingon the date of expropriation, into the currency of theParty of the investors concerned and freely convertiblecurrencies.
4. Without prejudice to Article 69, the investorsaffected by expropriation shall have a right of access to
the courts of justice or the administrative tribunals oragencies of the Party making the expropriation to seek aprompt review of the investors’ case and the amount ofcompensation in accordance with the principles set out inthis Article.
1. Each Party shall accord to investors of the other
Party that have suffered loss or damage relating to theirinvestments in the Area of the former Party due to armedconflict or state of emergency such as revolution,insurrection, civil disturbance or any other similar eventin the Area of that former Party, treatment, as regardsrestitution, indemnification, compensation or any othersettlement, that is no less favourable than that it accordsto its own investors or to investors of a non-Party.
2. Any payments as a means of settlement referred to inparagraph 1 shall be effectively realizable, freelytransferable and freely convertible at the market exchangerate into the currency of the Party of the investorsconcerned and freely convertible currencies.
Article 67Transfers
1. Each Party shall ensure that all transfers relating toinvestments in its Area of an investor of the other Partymay be made freely into and out of its Area without delay.Such transfers shall include those of:
(a) the initial capital and additional amounts tomaintain or increase investments;
(b) profits, capital gains, dividends, royalties,interests, fees and other current incomesaccruing from investments;
(c) proceeds from the total or partial sale orliquidation of investments;
(d) payments made under a contract including loanpayments in connection with investments;
(e) earnings and remuneration of personnel from theother Party who work in connection withinvestments in the Area of the former Party;
(f) payments made in accordance with Articles 65 and66; and
(g) payments arising out of the settlement of adispute under Article 69.
2. Each Party shall further ensure that such transfersmay be made in freely convertible currencies at the marketexchange rate prevailing on the date of each transfer.
3. Notwithstanding paragraphs 1 and 2, a Party may delayor prevent such transfers through the equitable, non-discriminatory and good-faith application of its lawsrelating to:
(a) bankruptcy, insolvency or the protection of therights of creditors;
(b) issuing, trading or dealing in securities;
(c) criminal or penal offenses; or
(d) ensuring compliance with orders or judgments inadjudicatory proceedings.
Article 68Subrogation
1. If a Party or its designated agency makes a payment toany of its investors under an indemnity, guarantee orcontract of insurance given in respect of an investment ofthat investor within the Area of the other Party, the otherParty shall:
(a) recognize the assignment, to the former Party orits designated agency, of any right or claim ofthe investor that formed the basis of suchpayment; and
(b) recognize the right of the former Party or itsdesignated agency to exercise by virtue ofsubrogation such right or claim to the sameextent as the original right or claim of theinvestor.
2. Articles 65 through 67 shall apply mutatis mutandis asregards payment to be made to the Party or its designatedagency mentioned in paragraph 1 by virtue of suchassignment of right or claim, and the transfer of suchpayment.
between a Party and an Investor of the Other Party
1. For the purposes of this Chapter, an “investmentdispute” is a dispute between a Party and an investor ofthe other Party that has incurred loss or damage by reasonof, or arising out of, an alleged breach of any obligationunder this Agreement with respect to the investor and itsinvestments.
2. An investment dispute shall, as far as possible, besettled amicably through consultation or negotiationbetween an investor who is a party to the investmentdispute (hereinafter referred to in this Article as“disputing investor”) and the Party that is a party to theinvestment dispute (hereinafter referred to in this Articleas “disputing Party”).
3. Nothing in this Article shall be construed so as toprevent a disputing investor from seeking administrative orjudicial settlement within the disputing Party inaccordance with the laws and regulations of the disputingParty.
4. If the investment dispute cannot be settled throughconsultation or negotiation referred to in paragraph 2within five months from the date on which the disputinginvestor requested for the consultation or negotiation inwriting and if the disputing investor has not submitted theinvestment dispute for resolution under courts of justiceor administrative tribunals or agencies, the disputinginvestor may submit the investment dispute to one of thefollowing international conciliations or arbitrations:
(a) conciliation or arbitration in accordance withthe Convention on the Settlement of InvestmentDispute between States and Nationals of OtherStates(hereinafter referred to in this Article as
“the ICSID Convention”), so long as the ICSIDConvention is in force between the Parties;
(b) conciliation or arbitration under the AdditionalFacility Rules of the International Centre forSettlement of Investment Disputes, so long as theICSID Convention is not in force between theParties;
(c) arbitration under the Arbitration Rules of theUnited Nations Commission on International TradeLaw, adopted by the United Nations Commission onInternational Trade Law on April 28, 1976; and
14. An arbitral tribunal established under paragraph 4shall decide the issues in dispute in accordance with thisAgreement and applicable rules of international law.
15. The disputing Party shall deliver to the other Party:
(a) written notice of the investment disputesubmitted to the arbitration no later than 30days after the date on which the investmentdispute was submitted; and
(b) copies of all pleadings filed in the arbitration.
16. On written notice to the disputing parties, the Partywhich is not the disputing Party may make submissions tothe arbitral tribunal on a question of interpretation ofthis Agreement.
17. The arbitral tribunal may order an interim measure ofprotection to preserve the rights of the disputinginvestor, or to facilitate the conduct of arbitralproceedings, including an order to preserve evidence in thepossession or control of either of the disputing parties.The arbitral tribunal shall not order attachment or enjointhe application of the measure alleged to constitute abreach referred to in paragraph 1.
18. The award rendered by the arbitral tribunal shallinclude:
(a) a judgment whether or not there has been a breachby the disputing Party of any obligation underthis Agreement with respect to the disputinginvestor and its investments; and
(b) a remedy if there has been such breach. Theremedy shall be limited to one or both of thefollowing:
(i) payment of monetary damages and applicableinterest; and
(ii) restitution of property, in which case theaward shall provide that the disputing Partymay pay monetary damages and any applicableinterest in lieu of restitution.
Costs may also be awarded in accordance with theapplicable arbitration rules.
19. The award rendered in accordance with paragraph 18shall be final and binding upon the disputing parties. Thedisputing Party shall carry out without delay theprovisions of the award and provide in its Area for the
enforcement of the award in accordance with its relevantlaws and regulations.
20. Neither Party shall give diplomatic protection, orbring an international claim, in respect of an investmentdispute which the other Party and an investor of the formerParty have consented to submit or submitted to arbitrationset forth in paragraph 4, unless the other Party shall havefailed to abide by and comply with the award rendered insuch investment dispute. Diplomatic protection, for thepurposes of this paragraph, shall not include informaldiplomatic exchanges for the sole purpose of facilitating asettlement of the investment dispute.
21. Annex 6 provides additional provisions with respect tothe settlement of investment disputes.
Article 70Temporary Safeguard Measures
1. A Party may adopt or maintain measures not conformingwith its obligations under Article 59 relating to cross-border capital transactions and Article 67:
(a) in the event of serious balance-of-payments andexternal financial difficulties or threatthereof; or
(b) in cases where, in exceptional circumstances,movements of capital cause or threaten to causeserious difficulties for macroeconomic managementin particular, monetary and exchange ratepolicies.
2. Measures referred to in paragraph 1:
(a) shall be consistent with the Articles ofAgreement of the International Monetary Fund;
(b) shall not exceed those necessary to deal with thecircumstances set out in paragraph 1;
(c) shall be temporary and eliminated as soon asconditions permit; and
(d) shall be promptly notified to the other Party.
3. Nothing in this Article shall be regarded as alteringthe rights enjoyed and obligations undertaken by a Party asa party to the Articles of Agreement of the InternationalMonetary Fund.
Article 71Prudential Measures
1. Notwithstanding any other provisions of this Chapter,a Party shall not be prevented from taking measuresrelating to financial services for prudential reasons,including measures for the protection of investors,depositors, policy holders or persons to whom a fiduciaryduty is owed by an enterprise supplying financial services,or to ensure the integrity and stability of the financialsystem.
2. Where such measures do not conform with the provisionsof this Chapter, they shall not be used as a means ofavoiding the Party's commitments or obligations under thisChapter.
Article 72Denial of Benefits
1. A Party may deny the benefits of this Chapter to aninvestor of the other Party that is an enterprise of theother Party and to its investments, where the denying Partyestablishes that the enterprise is owned or controlled byan investor of a non-Party and the denying Party:
(a) does not maintain diplomatic relations with thenon-Party; or
(b) adopts or maintains measures with respect to thenon-Party that prohibit transactions with theenterprise or that would be violated orcircumvented if the benefits of this Chapter wereaccorded to the enterprise or to its investments.
2. Subject to prior notification and consultation, aParty may deny the benefits of this Chapter to an investorof the other Party that is an enterprise of the other Partyand to its investments, where the denying Party establishesthat the enterprise is owned or controlled by an investorof a non-Party and the enterprise has no substantialbusiness activities in the Area of the other Party.
1. Article 65 shall apply to taxation measures, to the
extent that such taxation measures constitute expropriationas provided for in paragraph 1 of Article 65.
2. Where Article 65 applies to taxation measures inaccordance with paragraph 1, Articles 62 and 69 shall alsoapply in respect of taxation measures.
3. Notwithstanding paragraph 2, no investor may invokeArticle 65 as the basis for an investment dispute underArticle 69, where it has been determined pursuant toparagraph 4 that the taxation measure is not anexpropriation.
4. The investor shall refer the issue, at the time thatit gives a written notice of intent under paragraph 6 ofArticle 69, to the competent authorities of both Parties,through the contact points referred to in Article 16, todetermine whether such measure is not an expropriation. Ifthe competent authorities of both Parties do not considerthe issue or, having considered it, fail to determine thatthe measure is not an expropriation within a period of fivemonths of such referral, the investor may submit theinvestment dispute to conciliation or arbitration underArticle 69.
5. Paragraphs 2 through 4 shall apply only to taxationmeasure taken in the form of or in the applications of thelaws and regulations which are enacted or amended after theentry into force of this Agreement.
Note: With respect to Indonesia, taxation measuresreferred to in this paragraph do not include thosetaken by tax administrative authorities in theapplications of the relevant laws and regulations.
6. For the purposes of paragraph 4, the term “competentauthorities” means:
(a) with respect to Japan, the Minister of Finance orhis or her authorized representative, who shallconsider the issue in consultation with theMinister of Foreign Affairs or his or herauthorized representative; and
(b) with respect to Indonesia, the Minister ofFinance or his or her authorized representative.
(c) the term “computer reservation system services”means services provided by computerized systemsthat contain information about air carriers’schedules, availability, fares and fare rules,
through which reservations may be made or ticketsmay be issued;
(d) the term “juridical person” means any legalentity duly constituted or otherwise organizedunder applicable law, whether for profit orotherwise, and whether privately-owned orgovernmentally-owned, including any corporation,trust, partnership, joint venture, soleproprietorship or association;
(e) the term “juridical person of the other Party”means a juridical person which is either:
(i) constituted or otherwise organized under thelaw of the other Party; or
(ii) in the case of the supply of a servicethrough commercial presence, owned orcontrolled by:
(A) natural persons of the other Party; or
(B) juridical persons of the other Partyidentified under subparagraph (i);
(f) a juridical person is:
(i) “owned” by persons of a Party or a non-Partyif more than 50 percent of the equityinterests in it is beneficially owned bysuch persons;
(ii) “controlled” by persons of a Party or a non-Party if such persons have the power to name
a majority of its directors or otherwise tolegally direct its actions; and
(iii) “affiliated” with another person when itcontrols, or is controlled by, that otherperson; or when it and the other person areboth controlled by the same person;
(g) the term “measure” means any measure, whether inthe form of a law, regulation, rule, procedure,decision, administrative action or any otherform;
Note: The term “measure” shall include taxationmeasures to the extent covered by theGATS.
(h) the term “measure by a Party” means any measuretaken by:
(i) central or local governments and authoritiesof a Party; and
(ii) non-governmental bodies in the exercise ofpowers delegated by central or localgovernments or authorities of a Party;
(i) the term “measures by a Party affecting trade inservices” includes measures by a Party in respectof:
(i) the purchase, payment or use of services;
(ii) the access to and use of, in connection withthe supply of services, services which arerequired by the Party to be offered to thepublic generally; and
(iii) the presence, including commercial presence,of persons of the other Party for the supplyof services in the Area of the former Party;
(j) the term “monopoly supplier of a service” meansany person, public or private, which in therelevant market of a Party is authorized orestablished formally or in effect by that Partyas the sole supplier of that service;
(k) the term “natural person of a Party” means anatural person who resides in a Party orelsewhere and who is a national of the Partyunder the law of the Party;
(l) the term “person” means either a natural personor a juridical person;
(m) the term “service” includes any service in anysector except a service supplied in the exerciseof governmental authority;
(n) the term “service consumer” means any person thatreceives or uses services;
(o) the term “services of the other Party” meansservices which are supplied:
(i) from or in the Area of the other Party, orin the case of maritime transport services,by a vessel registered under the law of theother Party, or by a person of the other
Party which supplies such services throughthe operation of a vessel or its use inwhole or in part; or
(ii) in the case of the supply of servicesthrough commercial presence or through thepresence of natural persons, by servicesuppliers of the other Party;
(p) the term “service supplied in the exercise ofgovernmental authority” means any service whichis supplied neither on a commercial basis nor incompetition with one or more service suppliers;
(q) the term “service supplier” means any person thatseeks to supply or supplies a service;
Note: Where the service is not supplied directlyby a juridical person but through otherforms of commercial presence such as abranch or a representative office, theservice supplier (i.e. the juridicalperson) shall, nonetheless, through suchpresence be accorded the treatmentprovided for service suppliers under thisChapter. Such treatment shall be extendedto the presence through which the serviceis supplied and need not be extended toany other parts of the supplier locatedoutside the Area of a Party where theservice is supplied.
(r) the term “state enterprise” means an enterpriseowned or controlled by the Government of a Party;
(s) the term “supply of a service” includes theproduction, distribution, marketing, sale anddelivery of a service;
(t) the term “the selling and marketing of airtransport services” means opportunities for theair carrier concerned to sell and market freelyits air transport services including all aspectsof marketing such as market research, advertisingand distribution. These activities do notinclude the pricing of air transport services northe applicable conditions;
(u) the term “trade in services” means the supply ofservices:
(i) from the Area of a Party into the Area of
the other Party (“cross-border supplymode”);
(ii) in the Area of a Party to the serviceconsumer of the other Party (“consumptionabroad mode”);
(iii) by a service supplier of a Party, throughcommercial presence in the Area of the otherParty (“commercial presence mode”); and
(iv) by a service supplier of a Party, throughpresence of natural persons of that Party inthe Area of the other Party (“presence ofnatural persons mode”); and
(v) the term “traffic rights” means the rights forscheduled and non-scheduled services to operateand/or to carry passengers, cargo and mail forremuneration or hire from, to, within, or over aParty, including points to be served, routes tobe operated, types of traffic to be carried,capacity to be provided, tariffs to be chargedand their conditions, and criteria fordesignation of airlines, including such criteriaas number, ownership and control.
Article 78Market Access
1. With respect to market access through the modes ofsupply defined in subparagraph (u) of Article 77, eachParty shall accord services and service suppliers of theother Party treatment no less favourable than that providedfor under the terms, limitations and conditions agreed
and specified in its Schedule of Specific Commitments inAnnex 8.
Note: If a Party undertakes a market-access commitment inrelation to the supply of a service through the modeof supply referred to in subparagraph (u)(i) ofArticle 77 and if the cross-border movement of
capital is an essential part of the service itself,that Party is thereby committed to allow suchmovement of capital. If a Party undertakes amarket-access commitment in relation to the supplyof a service through the mode of supply referred toin subparagraph (u)(iii) of Article 77, it isthereby committed to allow related transfers ofcapital into its Area.
2. In sectors where market-access commitments areundertaken, the measures which a Party shall not maintainor adopt either on the basis of a regional subdivision oron the basis of its entire Area, unless otherwise specifiedin its Schedule of Specific Commitments in Annex 8, aredefined as:
(a) limitations on the number of service supplierswhether in the form of numerical quotas,monopolies, exclusive service suppliers or therequirements of an economic needs test;
(b) limitations on the total value of servicetransactions or assets in the form of numericalquotas or the requirement of an economic needstest;
(c) limitations on the total number of serviceoperations or on the total quantity of serviceoutput expressed in terms of designated numericalunits in the form of quotas or the requirement ofan economic needs test;
Note: This subparagraph does not cover measuresof a Party which limit inputs for thesupply of services.
(d) limitations on the total number of naturalpersons that may be employed in a particularservice sector or that a service supplier mayemploy and who are necessary for, and directlyrelated to, the supply of a specific service inthe form of numerical quotas or the requirementof an economic needs test;
(e) measures which restrict or require specific typesof legal entity or joint venture through which aservice supplier may supply a service; and
(f) limitations on the participation of foreigncapital in terms of maximum percentage limit onforeign shareholding or the total value ofindividual or aggregate foreign investment.
Article 79National Treatment
1. In the sectors inscribed in its Schedule of SpecificCommitments in Annex 8, and subject to any conditions andqualifications set out therein, each Party shall accord toservices and service suppliers of the other Party, inrespect of all measures affecting the supply of services,treatment no less favourable than that it accords to itsown like services and service suppliers.
Note: Specific commitments assumed under this Articleshall not be construed to require either Party tocompensate for any inherent competitivedisadvantages which result from the foreigncharacter of the relevant services or servicesuppliers.
2. A Party may meet the requirement of paragraph 1 byaccording to services and service suppliers of the otherParty, either formally identical treatment or formallydifferent treatment to that it accords to its own likeservices and service suppliers.
3. Formally identical or formally different treatmentshall be considered to be less favourable if it modifiesthe conditions of competition in favour of services orservice suppliers of the Party which accords such treatmentcompared to like services or service suppliers of the otherParty.
4. A Party shall not invoke the preceding paragraphsunder Chapter 14 with respect to a measure of the otherParty that falls within the scope of an international
agreement between the Parties relating to the avoidance ofdouble taxation.
Article 80Additional Commitments
The Parties may negotiate commitments with respect tomeasures affecting trade in services not subject toscheduling under Articles 78 and 79, including thoseregarding qualifications, standards or licensing matters.Such commitments shall be inscribed in a Party’s Scheduleof Specific Commitments in Annex 8.
1. With respect to sectors or sub-sectors where specific
commitments are undertaken by each Party, its Schedule ofSpecific Commitments in Annex 8 shall specify:
(a) terms, limitations and conditions on marketaccess;
(b) conditions and qualifications on nationaltreatment;
(c) undertakings relating to additional commitments;and
(d) where appropriate, the time-frame forimplementation of such commitments.
2. Measures inconsistent with both Articles 78 and 79shall be inscribed in the column relating to Article 78.In this case the inscription will be considered to providea condition or qualification to Article 79 as well.
3. With respect to sectors or sub-sectors where specificcommitments are undertaken in Annex 8 and which areindicated with “SS”, any terms, limitations, conditions andqualifications, referred to in subparagraphs 1(a) and (b),shall be limited to those based on non-conforming measures,which are in effect on the date of entry into force of thisAgreement.
4. With respect to sectors or sub-sectors where specificcommitments are undertaken by a Party in Annex 8 and whichare indicated with “S”, any terms, limitations, conditionsand qualifications on market access or national treatment,applied to a service supplier of the other Party on thedate of entry into force of this Agreement, shall not bechanged or modified so as to become more restrictive to
such a service supplier.
Note: With regard to the rights given to the servicesupplier under the above mentioned terms,limitations, conditions and qualifications, thisparagraph shall apply to the same extent as therights that the service supplier has alreadyexercised.
1. Each Party shall accord to services and service
suppliers of the other Party treatment no less favourablethan that it accords to like services and service suppliersof any non-Party.
2. Paragraph 1 shall not apply to any measure by a Partywith respect to sectors, sub-sectors or activities, as setout in its Schedule in Annex 9.
Article 83Authorization, Licensing or Qualification
With a view to ensuring that any measure by a Partyrelating to the authorization, licensing or qualificationof service suppliers of the other Party does not constitutean unnecessary barrier to trade in services, each Partyshall endeavor to ensure that such measure:
(a) is based on objective and transparent criteria,such as the competence and ability to supplyservices;
(b) is not more burdensome than necessary to ensurethe quality of services; and
(c) does not constitute a disguised restriction onthe supply of services.
Article 84Mutual Recognition
1. A Party may recognize the education or experienceobtained, requirements met, or licenses or certificationsgranted in the other Party for the purposes of thefulfillment, in whole or in part, of its standards orcriteria for the authorization, licensing or certification
of service suppliers of the other Party.
2. Recognition referred to in paragraph 1, which may beachieved through harmonization or otherwise, may be basedupon an agreement or arrangement between the Parties or maybe accorded unilaterally.
3. Where a Party recognizes, by agreement or arrangementbetween the Party and a non-Party or unilaterally, theeducation or experience obtained, requirements met orlicenses or certifications granted in the non-Party:
(a) authorizes or establishes a small number ofservice suppliers; and
(b) substantially prevents competition among those
suppliers in its Area.
Article 87Payments and Transfers
1. Except under the circumstances envisaged in Article88, a Party shall not apply restrictions on internationaltransfers and payments for current transactions relating totrade in services.
2. Nothing in this Chapter shall affect the rights andobligations of the Parties as members of the InternationalMonetary Fund under the Articles of Agreement of theInternational Monetary Fund, including the use of exchangeactions which are in conformity with the Articles ofAgreement of the International Monetary Fund, provided thata Party shall not impose restrictions on any capitaltransactions inconsistently with its commitments under thisChapter regarding such transactions, except under Article88, or at the request of the International Monetary Fund.
Article 88Restrictions to Safeguard the Balance of Payments
1. In the event of serious balance-of-payments andexternal financial difficulties or threat thereof, a Partymay adopt or maintain restrictions on trade in services,including on payments or transfers for transactions.
2. The restrictions referred to in paragraph 1:
(a) shall ensure that the other Party is treated asfavourably as any non-Party;
(b) shall be consistent with the Articles of
Agreement of the International Monetary Fund;
(c) shall avoid unnecessary damage to the commercial,economic and financial interests of the otherParty;
(d) shall not exceed those necessary to deal with thecircumstances described in paragraph 1; and
(e) shall be temporary and be phased outprogressively as the situation specified inparagraph 1 improves.
3. In determining the incidence of such restrictions, aParty may give priority to the supply of services which aremore essential to its economic or development programs.However, such restrictions shall not be adopted or
maintained for the purposes of protecting a particularservice sector.
Article 89Emergency Safeguard Measures
1. The Parties shall take note of the multilateralnegotiations on the question of emergency safeguardmeasures based on the principle of non-discriminationpursuant to Article X of the GATS. Upon the conclusion ofsuch multilateral negotiations, the Parties shall conduct areview for the purpose of discussing appropriate amendmentsto this Agreement based on the results of such multilateralnegotiations.
2. In the event that the implementation of this Agreementcauses substantial adverse impact to a Party in a specificservice sector prior to the conclusion of the multilateralnegotiations referred to in paragraph 1, the Party mayrequest consultations with the other Party for the purposesof taking appropriate measures to address such adverseimpact. The Parties shall take into account thecircumstances of the particular case in such consultations.
Article 90Denial of Benefits
1. A Party may deny the benefits of this Chapter to aservice supplier of the other Party that is a juridicalperson of the other Party, where the denying Partyestablishes that the juridical person is owned orcontrolled by persons of a non-Party, and the denyingParty:
(a) does not maintain diplomatic relations with the
non-Party; or
(b) adopts or maintains measures with respect to thenon-Party that prohibit transactions with thejuridical person or that would be violated orcircumvented if the benefits of this Chapter wereaccorded to the juridical person.
2. Subject to prior notification and consultation, aParty may deny the benefits of this Chapter to a servicesupplier of the other Party that is a juridical person ofthe other Party, where the denying Party establishes that
the juridical person is owned or controlled by persons of anon-Party and has no substantial business activities in theArea of the other Party.
Article 91Sub-Committee on Trade in Services
For the purposes of effective implementation andoperation of this Chapter, the functions of the Sub-Committee on Trade in Services (hereinafter referred to inthis Article as “the Sub-Committee”) established inaccordance with Article 15 shall be:
(a) reviewing and monitoring the implementation andoperation of this Chapter;
(b) discussing any issues related to this Chapter;
(c) reporting the findings of the Sub-Committee tothe Joint Committee; and
(d) carrying out other functions as may be delegatedby the Joint Committee in accordance with Article14.
Chapter 7Movement of Natural Persons
Article 92 Scope
1. This Chapter shall apply to measures affecting themovement of natural persons of a Party who enter the otherParty and fall under one of the categories referred to inAnnex 10.
2. This Chapter shall not apply to measures affectingnatural persons of a Party seeking access to employmentmarket of the other Party, nor shall it apply to measuresregarding nationality, or residence or employment on apermanent basis.
3. This Chapter shall not prevent a Party from applyingmeasures to regulate the entry of natural persons of theother Party into, or their temporary stay in, the formerParty, including those measures necessary to protect the
integrity of, and to ensure the orderly movement of naturalpersons across, its borders, provided that such measuresare not applied in such a manner as to nullify or impairthe benefits accruing to the other Party under the terms ofspecific commitments set out in Annex 10.
Note: The sole fact of requiring a visa or itsequivalent for natural persons of a certainnationality or citizenship and not for those ofothers shall not be regarded as nullifying orimpairing benefits under specific commitmentsset out in Annex 10.
Article 93Definition
For the purposes of this Chapter, the term “naturalpersons of a Party” means natural persons who reside in aParty or elsewhere and who under the law of the Party arenationals of the Party.
Article 94Specific Commitments
1. Each Party shall grant entry and temporary stay tonatural persons of the other Party in accordance with thisChapter including the terms of the categories in Annex 10,provided that the natural persons comply with the laws andregulations related to movement of natural persons of theformer Party applicable to entry and temporary stay whichare not inconsistent with the provisions of this Chapter.
2. Each Party shall, in accordance with its laws andregulations, issue proper travel documents necessary forimmediate return to the Party, to the natural persons of
the Party who stay in the other Party based on the grant ofentry and temporary stay under paragraph 1, where suchpersons are required to leave the other Party in accordancewith the laws and regulations of the other Party which arenot inconsistent with the provisions of this Chapter.
3. Each Party may require a natural person of the otherParty to obtain an appropriate visa or its equivalent priorto entry and temporary stay under paragraph 1.
4. Neither Party shall impose or maintain any limitationson the number of granting entry and temporary stay underparagraph 1, unless otherwise specified in Annex 10.
1. Each Party shall establish and make publicly available
requirements and procedures for application for a renewalof the period of temporary stay, a change of status oftemporary stay or an issuance of a work permit for anatural person of the other Party who has been grantedentry and temporary stay under paragraph 1 of Article 94.
2. Each Party shall endeavor to provide, upon request bya natural person of the other Party, information onrequirements and procedures referred to in paragraph 1.
3. Each Party shall, in accordance with its laws andregulations, ensure that fees charged by its competentauthorities on application referred to in paragraph 1 donot in themselves represent an unjustifiable impediment tothe movement of natural persons of the other Party underthis Chapter.
Article 96Sub-Committee on Movement of Natural Persons
For the purposes of the effective implementation andoperation of this Chapter, the functions of the Sub-Committee on Movement of Natural Persons (hereinafterreferred to in this Article as “the Sub-Committee”)established in accordance with Article 15 shall be:
(a) reviewing and monitoring the implementation andoperation of this Chapter;
(b) discussing any issues related to this Chapter;
(c) adopting guidelines referred to in Annex 10;
(d) reporting the findings of the Sub-Committee tothe Joint Committee; and
(e) carrying out other functions as may be delegatedby the Joint Committee in accordance with Article14.
(a) the term “energy and mineral resource good” meansany good listed in Annex 11;
(b) the term “energy and mineral resource regulatory
bodies” means the governmental bodies thatregulate and control the exploration,exploitation, production, operation,transportation, transmission or distribution,purchase or sale of an energy and mineralresource good;
(c) the term “energy and mineral resource regulatorymeasure” means any measure by energy and mineralresource regulatory bodies that directly affectsthe exploration, exploitation, production,operation, transportation, transmission ordistribution, purchase or sale of an energy andmineral resource good;
(d) the term “energy and mineral resource sector”means the sector relating to the exploration,exploitation, production, operation,transportation, transmission or distribution,purchase or sale of energy and mineral resourcegoods;
(e) the term “export licensing procedures” meansadministrative procedures, whether or notreferred to as “licensing”, used by a Party forthe operation of export licensing regimesrequiring the submission of an application orother documentation, other than that required forcustoms procedures, to the relevantadministrative body as a prior condition forexportation from that Party; and
(f) the term “person of the other Party” means eithera natural person or an enterprise of the otherParty.
Article 98Promotion and Facilitation of Investment
1. (a) Both Parties shall cooperate in promoting andfacilitating investments between the Parties inthe energy and mineral resource sector throughways such as:
(i) discussing effective ways on investmentpromotion activities and capacity building;
(ii) facilitating the provision and exchange ofinvestment information including informationon the laws, regulations and policies of theParties;
(iii) encouraging and supporting investmentpromotion activities of each Party or thebusiness sectors of the Parties, relatingto, in particular, the exploration,exploitation and production of energy andmineral resource goods and theinfrastructural facilities in the energy andmineral resources sector; and
(iv) discussing effective ways of creatingstable, equitable, favourable andtransparent conditions for investors.
(b) The implementation and operation of thisparagraph shall be subject to the availability offunds and the applicable laws and regulations ofeach Party.
2. Annex 12 provides additional provisions with respectto the promotion and facilitation of investment in theenergy and mineral resource sector.
Article 99Import and Export Restrictions
1. The Parties reaffirm their obligation to comply withthe relevant provisions of the GATT 1994, with respect toprohibitions or restrictions on the importation orexportation of energy and mineral resource goods.
2. Each Party, when introducing a prohibition orrestriction otherwise justified under the relevantprovisions of the GATT 1994, with respect to theexportation to or importation from the other Party of an
energy and mineral resource good, shall provide relevantinformation concerning such prohibition or restriction asearly as possible to the other Party and reply, upon therequest of the other Party, to specific questions on suchprohibition or restriction from the other Party, with aview to avoiding disruption of ordinary business activitiesin the Parties.
Article 100Export Licensing Procedures and Administrations
If a Party adopts or maintains export licensing
procedures with respect to an energy and mineral resourcegood:
(a) the rules for export licensing procedures shallbe neutral in application and administered in afair and equitable manner;
(b) the rules and all information concerningprocedures for the submission of applications,including the eligibility of persons of the otherParty to make such applications, theadministrative bodies to be approached, and thelists of products subject to the licensingrequirement shall be published, as soon aspossible, in such a manner as to enable the otherParty and traders of the other Party to becomeacquainted with them. Any exceptions,derogations or changes in or from the rulesconcerning export licensing procedures or thelist of products subject to export licensingshall also be published in the same manner asspecified above;
(c) in the case of licensing requirements forpurposes other than the implementation ofquantitative restrictions, the Party shallpublish sufficient information for the otherParty and traders of the other Party to know thebasis for granting and/or allocating licenses;
(d) where the Party provides the possibility forpersons of the other Party to request exceptionsor derogations from a licensing requirement, theformer Party shall include this fact in theinformation published under paragraph (b) as well
as information on how to make such a request and,to the extent possible, an indication of thecircumstances under which such a request would beconsidered;
(e) the Party shall provide, upon the request of theother Party, all relevant information concerningthe administration of the restrictions inaccordance with its laws and regulations;
(a) take account of environmental considerations, inaccordance with its laws and regulations,
throughout the process of formulation andimplementation of its policy on energy andmineral resources;
(b) encourage favourable conditions for the transferand dissemination of technologies that contributeto the protection of environment, consistent withthe adequate and effective protection ofintellectual property rights; and
(c) promote public awareness of environmental impactsof activities related to energy and mineralresources and of the scope for and the costsassociated with the prevention or abatement ofsuch impacts.
Article 103Community Development
Each Party welcomes any contribution by investors ofthe other Party to the development of its community whensuch investors make investments in the energy and mineralresource sector in its Area.
Article 104Cooperation
1. Both Parties shall cooperate in the energy and mineralresource sector of Indonesia.
2. (a) The Parties shall endeavor to make available thenecessary funds and other resources for theimplementation of cooperation under this Articlein accordance with their respective laws andregulations.
(b) Costs of cooperation under this Article shall beborne in an equitable manner to be mutuallyagreed upon by the Parties.
3. (a) Areas of cooperation under this Article shallinclude policy development, capacity building,and technology transfer.
(b) Forms of cooperation under this Article shall beset forth in the Implementing Agreement.
Article 105Sub-Committee on Energy and Mineral Resources
For the purposes of the effective implementation and
operation of this Chapter, the functions of the Sub-Committee on Energy and Mineral Resources (hereinafterreferred to in this Article as “the Sub-Committee”)established in accordance with Article 15 shall be:
(a) exchanging information on any matters related tothis Chapter;
(b) reviewing and monitoring the implementation andoperation of this Chapter;
(c) discussing any issues related to this Chapter,including issues related to business environment,cooperation, energy security, and the developmentof an open and competitive market;
(d) reporting the findings of the Sub-Committee and,where appropriate, making recommendations, to theJoint Committee; and
(e) carrying out other functions as may be delegatedby the Joint Committee in accordance with Article14.
Chapter 9Intellectual Property
Article 106General Provisions
1. The Parties, aiming at further promoting trade andinvestment, shall grant and ensure adequate, effective andnon-discriminatory protection of intellectual property,promote efficiency and transparency in the administrationof intellectual property protection system, and provide for
measures for the enforcement of intellectual propertyrights against infringement, counterfeiting and piracy, inaccordance with the provisions of this Chapter and theinternational agreements to which both Parties are parties.
2. The Parties reaffirm their commitment to comply withthe obligations set out in the international agreementsrelating to intellectual property to which both Parties areparties.
3. Each Party shall endeavor to become a party, if it isnot a party, to the following international agreements inaccordance with its necessary procedures:
(a) the Protocol Relating to the Madrid AgreementConcerning the International Registration ofMarks of June 27, 1989, as amended;
(b) the International Convention for the Protectionof Performers, Producers of Phonograms andBroadcasting Organizations of October 26, 1961;and
(c) the 1991 Act of International Convention for theProtection of New Varieties of Plants(hereinafter referred to in this Chapter as “the1991 UPOV Convention”).
Article 107Definitions
For the purposes of this Chapter:
(a) the term “intellectual property” means allcategories of intellectual property:
(i) that are subject of Articles 112 through118; and/or
(ii) that are under the TRIPS Agreement and/orthe relevant international agreementsreferred to in the TRIPS Agreement; and
(b) the term “Nice Classification” means theclassification established by the Nice AgreementConcerning the International Classification ofGoods and Services for the Purposes of theRegistration of Marks of June 15, 1957, asamended.
Article 108National Treatment
and Most-Favoured-Nation Treatment
1. Each Party shall accord to nationals of the otherParty treatment no less favourable than that it accords toits own nationals with regard to the protection ofintellectual property in accordance with Articles 3 and 5of the TRIPS Agreement.
2. Each Party shall accord to nationals of the otherParty treatment no less favourable than that it accords tothe nationals of a non-Party with regard to the protectionof intellectual property in accordance with Articles 4 and
5 of the TRIPS Agreement.
3. For the purposes of this Article:
(a) the term “nationals” shall have the same meaningas in the TRIPS Agreement; and
(b) the term “protection” shall include mattersaffecting the availability, acquisition, scope,maintenance and enforcement of intellectualproperty rights as well as those mattersaffecting the use of intellectual property rightsspecifically addressed in this Chapter.
Article 109Procedural Matters
1. For the purposes of providing efficient administrationof intellectual property protection system, each Partyshall take appropriate measures to improve itsadministrative procedures concerning intellectual propertyrights in line with international standards.
2. Neither Party may require the authentication ofsignatures or other means of self-identification ondocuments to be submitted to the competent authority of theParty, including applications, translations into a languageaccepted by such authority of any earlier application whosepriority is claimed, powers of attorney and certificationsof assignment, in the course of application procedure orother administrative procedures on patents, utility models,industrial designs, or trademarks.
3. Notwithstanding paragraph 2, a Party may require:
(a) the authentication of signatures or other meansof self-identification, if the law of the Partyso provides, where the signatures or other meansof self-identification concern the surrender of apatent or a registration of utility models,industrial designs or trademarks; and
(b) the submission of evidence if there is reasonabledoubt as to the authenticity of signatures orother means of self-identification on documentssubmitted to the competent authority of the
Party. Where the competent authority notifiesthe person that the submission of evidence isrequired, the notification shall state the reasonfor requiring the submission.
4. Neither Party may require the certification oftranslation of an earlier application whose priority isclaimed.
5. Each Party shall introduce and implement a system inwhich a power of attorney for application procedures orother administrative procedures on patents, utility models,industrial designs, or trademarks before the competentauthority of the Party may relate to one or moreapplications and/or registrations identified in the powerof attorney or, subject to any exception indicated by theappointing person, to all existing and future applicationsand/or registrations of that person.
6. Neither Party shall require that the submission of apower of attorney be completed together with the filing ofthe application as a condition for according a filing dateto the application.
7. Each Party shall endeavor to improve patent attorneyor registered intellectual property rights consultantsystem with a view to further facilitating acquisition andutilization of industrial property rights.
8. The applications for and the grants of patents and thepublications thereof shall be classified in accordance withthe international patent classification system establishedunder the Strasbourg Agreement Concerning the InternationalPatent Classification of March 24, 1971, as amended. Theapplications for registration of, and the registrations of,
trademarks for goods and services and the publicationsthereof shall be classified in accordance with the NiceClassification.
Article 110Transparency
For the purposes of further promoting transparency inadministration of intellectual property protection system,each Party shall, in accordance with its laws andregulations, take appropriate measures to:
(a) publish information on at least the applicationsfor and the grants of patents, the registrationsof utility models and industrial designs, and theapplications for registration of, and the
registrations of, trademarks and new varieties ofplants, and make available to the publicinformation contained in the dossiers thereof;
(b) make available to the public information on theapplications for the suspension by the customsauthority of the release of counterfeit trademarkor pirated copyright goods as a border measure;and
(c) make available to the public information(including statistical information) on itsefforts to provide effective enforcement ofintellectual property rights and otherinformation with regard to intellectual propertyprotection system (including standards orguidelines on examination of the applications forpatents and the applications for registration ofindustrial designs and trademarks).
Article 111Promotion of Public Awareness
of Protection of Intellectual Property
The Parties shall endeavor to promote public awarenessof protection of intellectual property includingeducational and dissemination projects on the use ofintellectual property as well as on the enforcement ofintellectual property rights.
Article 112Patents
1. Each Party shall ensure that any patent application isnot rejected solely on the ground that the subject matter
claimed in the application is related to a computerprogram.
2. Each Party shall ensure that an applicant may, on itsown initiative, divide a patent application containing morethan one invention into a certain number of divisionalpatent applications within the time limit provided for inthe laws and regulations of the Party.
(b) in the case of a patent for an invention ofprocess, acts of manufacturing, assigning,leasing, importing, or offering for assignment orlease, for commercial purposes, things to be used
exclusively for the working of such invention.
Article 113Industrial Designs
1. Each Party shall provide for the protection ofindependently created industrial designs that are new ororiginal. Each Party shall provide that designs are notnew or original if they do not significantly differ fromknown designs.
2. Each Party shall ensure that where more than oneapplication for registration of industrial design relatingto the same or similar industrial designs is filed ondifferent dates, only the applicant who filed first mayobtain a registration of the industrial design concerned.
3. Each Party shall ensure adequate and effectiveprotection of industrial designs of a part of an article aswell as an article as a whole.
4. Each Party shall ensure that an owner of protectedindustrial design has the right to prevent third partiesnot having the owner’s consent from making, selling orimporting articles bearing or embodying a design which isidentical or similar to the protected design, when such actis undertaken for commercial purposes.
5. Each Party shall endeavor to establish appeal systemin which an appeal may be filed with the administrativeauthority for industrial designs against its decision ofrefusal of an application for registration of industrialdesign.
Article 114
Trademarks
1. Each Party shall ensure that an owner of registeredtrademark has the exclusive right to prevent all thirdparties not having the owner’s consent from using in thecourse of trade identical or similar signs for goods orservices which are identical or similar to those in respectof which the trademark is registered, where such use wouldresult in a likelihood of confusion.
2. Each Party shall refuse or cancel the registration ofa trademark, which is identical or similar to a trademarkwell-known in either Party as indicating goods or servicesof another person, if the use of that trademark is for
unfair intentions, inter alia, intentions to gain an unfairprofit or intentions to cause damage to such person whetheror not such use would result in a likelihood of confusion.
3. Each Party shall ensure that, where more than oneapplication for registration of trademark relating toidentical or similar trademarks which are to be used onidentical or similar goods or services is filed ondifferent dates, only the applicant who filed first mayobtain a registration for the trademark concerned.
4. Each Party shall ensure that one and the sameapplication for registration of trademark may relate toseveral goods and/or services, irrespective of whether theybelong to one class or to several classes of the NiceClassification.
5. Each Party shall ensure that the period during whichthe request for renewal of registration of a trademark maybe presented and the renewal fee may be paid shall start atleast six months before the date on which the renewal isdue and shall end at the earliest six months after thatdate.
Article 115Copyright and Related Rights
1. Each Party shall provide to authors all exclusiverights protected under the Berne Convention for theProtection of Literary and Artistic Works of September 9,1886, as amended and the WIPO Copyright Treaty of December20, 1996 (hereinafter referred to in this Article as “theWIPO Copyright Treaty”).
2. Each Party shall provide to performers and producers
of phonograms all exclusive rights protected under the WIPOPerformances and Phonograms Treaty of December 20, 1996,(hereinafter referred to in this Article as “the WIPOPerformances and Phonograms Treaty”).
3. Each Party shall provide to broadcasting andcablecasting organizations the right to authorize orprohibit the fixation of their broadcasts and cablecasts,respectively, in accordance with its laws and regulations.
4. Each Party shall provide adequate and effective legalremedies against any person knowingly performing any of thefollowing acts knowing, or with respect to civil remedieshaving reasonable grounds to know, that it will induce,
enable, facilitate or conceal an infringement of copyrightor related rights:
(a) to remove or alter any electronic rightsmanagement information without authority; and
(b) to distribute, import for distribution,broadcast, communicate or make available to thepublic, without authority, works, copies ofworks, performances, copies of fixed performancesor phonograms knowing that electronic rightsmanagement information has been removed oraltered without authority.
5. Each Party shall take necessary measures to promotethe development of collective management organizations forcopyright and related rights in the Party.
6. For the purposes of this Article:
(a) with respect to the rights of authors, the term“rights management information” shall have thesame meaning as in Article 12 of the WIPOCopyright Treaty; and
(b) with respect to the rights of performers andproducers of phonogram, the term “rightsmanagement information” shall have the samemeaning as in Article 19 of the WIPO Performancesand Phonograms Treaty.
Article 116New Varieties of Plants
Each Party shall provide for the protection of all
plant genera and species by an effective plant varietiesprotection system which is consistent with the 1991 UPOVConvention.
Article 117Acts of Unfair Competition
1. Each Party shall provide for effective protectionagainst acts of unfair competition.
2. Any act of competition contrary to honest practices inindustrial or commercial matters constitutes an act ofunfair competition.
3. The following acts, in particular, shall be prohibitedas acts of unfair competition:
(a) all acts of such a nature as to create confusion
by any means whatever with the establishment, thegoods, the services, or the industrial orcommercial activities, of a competitor;
(b) false allegations in the course of trade of sucha nature as to discredit the establishment, thegoods, the services, or the industrial orcommercial activities, of a competitor;
(c) indications or allegations the use of which inthe course of trade is liable to mislead thepublic as to the nature, the characteristics, thesuitability for their purpose, or the quantity,of the goods or services, or the manufacturingprocess of the goods; and
(d) acts by an agent or representative of an owner ofright relating to a trademark, without alegitimate reason and the consent of the owner ofsuch right, of using a trademark identical orsimilar to the trademark relating to such rightin respect of goods or services identical orsimilar to those relating to such right; ofassigning, delivering, displaying for thepurposes of assignment or delivery, exporting,importing, or providing through atelecommunication line, goods using suchidentical or similar trademark which areidentical or similar to the goods relating tosuch right; or of providing services by usingsuch identical or similar trademark which areidentical or similar to the services relating tosuch right.
4. The following acts may also be prohibited as acts of
unfair competition:
(a) acts of using an indication of goods or otherindication as one’s own which is identical orsimilar to another person's indication of goodsor other indication which is famous; or acts ofassigning, delivering, displaying for thepurposes of assignment or delivery, exporting,importing, or providing through atelecommunication line, goods using suchindication;
(b) acts of assigning, leasing, displaying for thepurposes of assignment or lease, exporting orimporting, goods which imitate the configurationof another person's goods except as provided for
in the laws and regulations of each Party; and
(c) acts of acquiring or holding right to use domainnames identical or similar to a specificindication of goods or services of anotherperson, or using such domain names, withintention to gain unfair profit or intention ofcausing damage to such person.
5. Each Party shall establish appropriate remedies toprevent or punish acts of unfair competition. Inparticular, each Party shall ensure that any person thatconsiders its business interests to be affected by an actof unfair competition may bring legal action and requestinjunction against the act, destruction of the goods whichconstitute the act, removal of facilities used for the act,or any damages which result from the act, except asprovided for in the laws and regulations of the Party.
Article 118Protection of Undisclosed Information
Each Party shall ensure in its laws and regulationsadequate and effective protection of undisclosedinformation in accordance with Article 39 of the TRIPSAgreement.
Article 119Enforcement – Border Measures
1. Each Party shall adopt procedures to enable a rightholder, who has valid grounds for suspecting that theimportation or exportation of counterfeit trademark orpirated copyright goods may take place, to lodge anapplication in writing with competent authorities,
administrative or judicial, for the suspension by thecustoms authority of the release into free circulation ofsuch goods.
2. In the case of the suspension with respect toimportation pursuant to paragraph 1, the importer and theright holder shall be promptly notified of the suspension.In the case of the suspension with respect to exportationpursuant to paragraph 1, the exporter and the right holdershall be promptly notified of the suspension.
3. Each Party shall ensure that its competent authoritiesdo not allow the re-exportation of counterfeit trademark orpirated copyright goods other than in exceptionalcircumstances.
Article 120Enforcement – Civil Remedies
1. Each Party shall ensure that a right holder ofintellectual property has the right to claim against theinfringer damages adequate to compensate for the injury theright holder has suffered because of an infringement ofthat person’s intellectual property right by an infringerwho knowingly, or with reasonable grounds to know, engagedin infringing activity.
2. Each Party shall endeavor, as necessary, to improveits judicial system with a view to providing effectivecivil remedies against infringement of intellectualproperty rights.
Article 121Enforcement – Criminal Remedies
Each Party shall provide for criminal procedures andpenalties to be applied in cases of the infringement ofpatent rights, rights relating to utility models,industrial designs, trademarks or layout-designs ofintegrated circuits, copyrights or related rights, or plantbreeder’s rights, committed willfully and on a commercialscale. Remedies available shall include imprisonmentand/or monetary fines sufficient to provide a deterrent,consistently with the level of penalties applied for crimesof a corresponding gravity.
Article 122Cooperation
1. The Parties, recognizing the growing importance of
protection of intellectual property in pursuing furtherpromotion of trade and investment between the Parties, inaccordance with their respective laws and regulations andsubject to their available resources, shall cooperate inthe field of intellectual property. Costs of cooperationunder this Article shall be borne in as an equitable manneras possible.
2. Areas and forms of cooperation under this Articleshall be set forth in the Implementing Agreement.
For the purposes of the effective implementation and
operation of this Chapter, the functions of the Sub-Committee on Intellectual Property (hereinafter referred toin this Article as “the Sub-Committee”) established inaccordance with Article 15 shall be:
(a) reviewing and monitoring the implementation andoperation of this Chapter;
(b) discussing any issues related to intellectualproperty with a view to enhancing protection ofintellectual property and enforcement ofintellectual property rights and to promotingefficient and transparent administration ofintellectual property protection system;
(c) exchanging views on the following issues:
(i) protection of genetic resources, traditionalknowledge and folklore; and
(ii) liability of internet service providers;
(d) reporting the findings of the Sub-Committee tothe Joint Committee; and
(e) carrying out other functions as may be delegatedby the Joint Committee in accordance with Article14.
Chapter 10Government Procurement
Article 124Exchange of Information
1. Each Party shall, subject to its laws and regulations,respond in a timely manner to reasonable requests from theother Party for information on its laws and regulations,policies and practices on government procurement, as wellas any reforms to its existing government procurementregimes.
2. The exchange of information under paragraph 1 shall befacilitated through the following governmental authorities:
(a) for Japan, the Ministry of Foreign Affairs; and
(b) for Indonesia, the State Ministry of NationalDevelopment Planning (BAPPENAS).
Article 125
Sub-Committee on Government Procurement
1. For the purposes of the effective implementation andoperation of this Chapter, the functions of the Sub-Committee on Government Procurement (hereinafter referredto in this Article as “the Sub-Committee”) established inaccordance with Article 15 shall be:
(a) reviewing and monitoring the implementation andoperation of this Chapter;
(b) exchanging views on laws and regulations,policies and practices, and other mutually agreedissues regarding government procurement;
(c) discussing ways to facilitate cooperationsbetween relevant entities of the Parties in thefield of government procurement;
(d) reporting the findings of the Sub-Committee tothe Joint Committee; and
(e) carrying out other functions as may be delegatedby the Joint Committee in accordance with Article14.
2. The decision by each Party on the composition ofrepresentatives of the Government of the Party to theSub-Committee, shall be facilitated by itsgovernmental authority referred to in paragraph 2 ofArticle 124.
Chapter 11Competition
Article 126Promotion of Competition
by Addressing Anti-competitive Activities
Each Party shall, in accordance with its laws andregulations, promote competition by addressing anti-competitive activities, in order to facilitate theefficient functioning of its market.
Note: For the purposes of this Chapter, the term“anti-competitive activities” means any conductor transaction that may be subject to penaltiesor relief under the competition laws andregulations of either Party.
Article 127Cooperation on the Promotion of Competition
1. The Parties shall, in accordance with their respective
laws and regulations, cooperate on the promotion ofcompetition by addressing anti-competitive activities, andon the capacity building for strengthening competitionpolicy and implementation of competition laws andregulations, subject to their respective availableresources.
2. The details and procedures of cooperation under thisArticle shall be specified in the Implementing Agreement.
Article 128Non-Discrimination
Each Party shall apply its competition laws andregulations in a manner which does not discriminate betweenpersons in like circumstances on the basis of theirnationality.
Article 129Procedural Fairness
Each Party shall implement administrative and judicialprocedures in a fair manner to address anti-competitiveactivities, pursuant to its relevant laws and regulations.
Article 130Non-Application of Paragraph 2 of Article 9
Paragraph 2 of Article 9 shall not apply to thisChapter.
Chapter 12Improvement of Business Environmentand Promotion of Business Confidence
Article 131Basic Principles
1. The Parties, confirming their interest in creating amore favourable business environment with a view topromoting trade and investment activities by enterprises ofthe Parties, shall from time to time have consultations inorder to address issues concerning the improvement of thebusiness environment in the Parties and to facilitate thepromotion of the business confidence among enterprises ofthe Parties.
2. Each Party shall, in accordance with its laws andregulations, take appropriate measures to further improvethe business environment for the benefit of the enterprisesof the Parties conducting their business activities in the
Parties.
3. The Parties shall, in accordance with their respectivelaws and regulations, promote cooperation to furtherimprove the business environment in their respectiveParties and take necessary measures including establishingsuch mechanisms as provided for in subparagraph 1(j) ofArticle 15 and Article 133.
Article 132Sub-Committee on Improvement of Business Environment
and Promotion of Business Confidence
1. For the purposes of the effective implementation andoperation of this Chapter, the functions of the Sub-Committee on Improvement of Business Environment andPromotion of Business Confidence(hereinafter referred to inthis Article as “the Sub-Committee”) established inaccordance with Article 15 shall be:
(a) addressing issues in relation to the improvementof business environment and the promotion of thebusiness confidence that the Sub-Committeeconsiders appropriate, taking into account, asnecessary, the findings reported by a LiaisonOffice on Improvement of Business Environmentestablished in accordance with Article 133, andin cooperation with other relevant Sub-Committeesor existing mechanisms with a view to avoidingunnecessary overlap with the works of such Sub-Committees or mechanisms;
(b) reporting the findings and making recommendationsto the Parties, including the measures to betaken by the Parties, regarding such functions as
referred to in subparagraph (a). The Partiesshall take into consideration suchrecommendations. The Sub-Committee may consultwith the Joint Committee prior to the submissionof recommendations to the Parties;
(c) where appropriate, reviewing the implementationof the recommendations referred to insubparagraph (b);
(d) making available, where appropriate, toenterprises of the Parties the recommendationsreferred to in subparagraph (b) and the resultsof the review referred to in subparagraph (c) in
an appropriate manner;
(e) reporting the recommendations referred to insubparagraph (b) and other findings in relationto the implementation and operation of thisChapter to the Joint Committee; and
(f) carrying out other functions as may be delegatedby the Joint Committee in accordance with Article14.
2. The other details of the Sub-Committee may be setforth in the Implementing Agreement.
Article 133Liaison Office on Improvement of Business Environment
1. Each Party shall designate and maintain a LiaisonOffice on Improvement of Business Environment for thepurposes of this Chapter.
2. The functions and other details of the Liaison Officeon Improvement of Business Environment may be set forth inthe Implementing Agreement.
Chapter 13Cooperation
Article 134Basic Principles
The Parties shall promote cooperation under thisAgreement for their mutual benefits in order to liberalizeand facilitate trade and investment between the Parties andto promote the well-being of the peoples of the Parties.
For this purpose, the Parties shall cooperate between theGovernments of the Parties and, where necessary andappropriate, encourage and facilitate cooperation betweenthe parties other than the Governments of the Parties, inthe following fields:
(j) other fields to be mutually agreed upon by theParties.
Note: Cooperation in the fields of customs procedures,energy and mineral resources, intellectual propertyand competition is provided for in Chapters 4, 8, 9and 11, respectively.
Article 135Areas and Forms of Cooperation
Areas and forms of cooperation under this Chapter maybe set forth in the Implementing Agreement.
Article 136Costs of Cooperation
1. The Parties shall endeavor to make available thenecessary funds and other resources for the implementationof cooperation under this Chapter in accordance with theirrespective laws and regulations.
2. Costs of cooperation under this Chapter shall be bornein an equitable manner to be mutually agreed upon by theParties.
Article 137
Sub-Committee on Cooperation
1. For the purposes of the effective implementation andoperation of this Chapter, the functions of the Sub-Committee on Cooperation (hereinafter referred to in thisArticle as “the Sub-Committee”) established in accordancewith Article 15 shall be:
(a) exchanging information on cooperation;
(b) reviewing, monitoring and giving guidance on theimplementation and operation of this Chapter;
(d) discussing any issues related to this Chapter;
(e) reporting the findings of the Sub-Committee tothe Joint Committee; and
(f) carrying out other functions as may be delegatedby the Joint Committee in accordance with Article14.
2. The Sub-Committee shall respect consultationmechanisms for Official Development Assistance and othercooperation schemes between the Parties and, asappropriate, share information and coordinate with suchmechanisms and schemes to ensure effective and efficientimplementation of cooperative activities and projects.
Chapter 14Dispute Settlement
Article 138Scope
1. This Chapter shall apply with respect to thesettlement of disputes between the Parties arising out ofthe interpretation and/or application of this Agreement.
2. Notwithstanding paragraph 1, this Chapter exceptArticle 139 shall not apply to Articles 104 and 122, andChapters 10 through 13.
3. Nothing in this Chapter shall prejudice any rights ofthe Parties to have recourse to dispute settlementprocedures available under any other internationalagreement to which both Parties are parties.
4. Notwithstanding paragraph 3, once a dispute settlementprocedure has been initiated under this Chapter or under
any other international agreement to which both Parties areparties with respect to a particular dispute, thatprocedure shall be used to the exclusion of any otherprocedure for that particular dispute.
Article 139General Principle
Any dispute between the Parties arising out of theinterpretation and/or application of this Agreement shall,as far as possible, be settled peacefully and amicably.
1. Either Party may request in writing consultations to
the other Party concerning any matter arising out of theinterpretation and/or application of this Agreement.
2. When a Party requests consultations pursuant toparagraph 1, the other Party shall reply to the request andenter into consultations in good faith within 60 days afterthe date of receipt of the request. In a case ofconsultations regarding perishable goods, the other Partyshall enter into consultations within 20 days after thedate of receipt of the request.
3. Unless otherwise agreed by the Parties, consultationsshall be treated as confidential. Consultations shall bewithout prejudice to the rights of either Party in anyfurther proceedings.
Article 141Good Offices, Conciliation or Mediation
1. Good offices, conciliation or mediation may berequested at any time by either Party. They may begin atany time by agreement of the Parties, and be terminated atany time upon the request of either Party.
2. If the Parties agree, good offices, conciliation ormediation may continue while procedures of the arbitraltribunal provided for in this Chapter are in progress.
3. Proceedings involving good offices, conciliation ormediation and positions taken by the Parties during theseproceedings, shall be treated as confidential, and withoutprejudice to the rights of either Party in any furtherproceedings.
Article 142
Establishment of Arbitral Tribunals
1. The complaining Party that requested consultationsunder Article 140 may request in writing the establishmentof an arbitral tribunal to the Party complained against:
(a) if the Party complained against does not enterinto such consultations within 60 days, or within20 days in a case of consultations regardingperishable goods, after the date of receipt ofthe request for such consultations; or
7. The date of the establishment of an arbitral tribunalshall be the date on which the chair is appointed.
Article 143
Functions of Arbitral Tribunals
1. The arbitral tribunal established pursuant to Article142:
(a) should consult with the Parties as appropriateand provide adequate opportunities for thedevelopment of a mutually satisfactoryresolution;
(b) shall make its award in accordance with thisAgreement and applicable rules of internationallaw; and
(c) shall set out, in its award, its findings of lawand fact, together with the reasons therefor.
2. The arbitral tribunal may seek, from the Parties, suchrelevant information as it considers necessary andappropriate. The Parties shall respond promptly and fullyto any request by the arbitral tribunal for suchinformation as the arbitral tribunal considers necessaryand appropriate.
3. The arbitral tribunal may seek information from anyrelevant source and may consult experts to obtain theiropinion on certain aspects of the matter. With respect tofactual issues concerning a scientific or other technicalmatter raised by a Party, the arbitral tribunal may requestadvisory reports in writing from experts.
4. The arbitral tribunal may, at the request of a Partyor on its own initiative, select, in consultation with theParties, no fewer than two scientific or technical expertswho shall assist the arbitral tribunal throughout its
proceedings, but who shall not have the right to vote inrespect of any decision to be made by the arbitraltribunal, including its award.
Article 144Proceedings of Arbitral Tribunals
1. The arbitral tribunal shall meet in closed session.
2. The venue for the proceedings of the arbitral tribunalshall be decided by mutual consent of the Parties, failingwhich it shall alternate between the Parties.
3. The deliberations of the arbitral tribunal and thedocuments submitted to it shall be kept confidential.
4. Notwithstanding paragraph 3, either Party may make
public statements as to its views regarding the dispute,but shall treat as confidential, information and writtensubmissions submitted by the other Party to the arbitraltribunal which that other Party has designated asconfidential. Where a Party has provided information orwritten submissions designated to be confidential, thatParty shall, upon request of the other Party, provide anon-confidential summary of the information or writtensubmissions which may be disclosed publicly.
5. The Parties shall be given the opportunity to attendany of the presentations, statements or rebuttals in theproceedings. Any information or written submissionssubmitted by a Party to the arbitral tribunal, includingany comments on the descriptive part of the draft award andresponses to questions put by the arbitral tribunal, shallbe made available to the other Party.
6. The award of the arbitral tribunal shall be draftedwithout the presence of the Parties, and in the light ofthe information provided and the statements made.
7. The arbitral tribunal shall, within 90 days after thedate of its establishment, submit to the Parties its draftaward, including both the descriptive part and its findingsand conclusions, for the purposes of enabling the Partiesto review precise aspects of the draft award. When thearbitral tribunal considers that it cannot submit its draftaward within the aforementioned 90 days period, it mayextend that period with the consent of the Parties. AParty may submit comments in writing to the arbitraltribunal on the draft award within 15 days after the dateof submission of the draft award.
8. The arbitral tribunal shall issue its award, within 30
days after the date of submission of the draft award.
9. The arbitral tribunal shall attempt to make itsdecisions, including its award, by consensus but may alsomake its decisions, including its award, by majority vote.
10. The award of the arbitral tribunal shall be final andbinding on the Parties.
4. If the complaining Party considers that the Partycomplained against has failed to comply with the awardwithin the implementation period as determined pursuant toparagraph 2, it may refer the matter to an arbitral
tribunal.
5. If the arbitral tribunal to which the matter isreferred pursuant to paragraph 4 confirms that the Partycomplained against has failed to comply with the awardwithin the implementation period as determined pursuant toparagraph 2, the complaining Party may, within 30 daysafter the date of such confirmation by the arbitraltribunal, notify the Party complained against that itintends to suspend the application to the Party complainedagainst of concessions or other obligations under thisAgreement.
6. The suspension of the application of concessions orother obligations under paragraphs 3 and 5 may only beimplemented at least 30 days after the date of thenotification in accordance with those paragraphs. Suchsuspension shall:
(a) not be effected if, in respect of the dispute towhich the suspension relates, consultations orproceedings before the arbitral tribunal are inprogress;
(b) be temporary, and be discontinued when theParties reach a mutually satisfactory resolutionor where compliance with the original award iseffected;
(c) be restricted to the same level of nullificationor impairment that is attributable to the failureto comply with the original award; and
(d) be restricted to the same sector or sectors towhich the nullification or impairment relates,
unless it is not practicable or effective tosuspend the application of concessions or otherobligations in such sector or sectors.
7. If the Party complained against considers that therequirements for the suspension of the application to it ofconcessions or other obligations under this Agreement bythe complaining Party set out in paragraph 3, 5 or 6 have
not been met, it may request consultations with thecomplaining Party. The complaining Party shall enter intoconsultations within 10 days after the date of receipt ofthe request. If the Parties fail to resolve the matterwithin 30 days after the date of receipt of the request forconsultations pursuant to this paragraph, the Partycomplained against may refer the matter to an arbitraltribunal.
8. The arbitral tribunal that is established for thepurposes of this Article shall, wherever possible, have, asits arbitrators, the arbitrators of the original arbitraltribunal. If this is not possible, then the arbitrators tothe arbitral tribunal that is established for the purposesof this Article shall be appointed pursuant to paragraphs 4through 6 of Article 142. The arbitral tribunalestablished for the purposes of this Article shall issueits award within 60 days after the date when the matter isreferred to it. Such award shall be binding on theParties.
Article 147Modification of Time Periods
Any time period provided for in this Chapter may bemodified by mutual consent of the Parties.
Article 148Expenses
Unless the Parties agree otherwise, the expenses ofthe arbitral tribunal, including the remuneration of itsarbitrators, shall be borne by the Parties in equal shares.
Chapter 15
Final Provisions
Article 149Table of Contents and Headings
The table of contents and headings of the Chapters andthe Articles of this Agreement are inserted for convenienceof reference only and shall not affect the interpretationof this Agreement.
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