The Government of the United States and the Government of the Republic of Singapore (“the Parties”),

Recognizing their longstanding friendship and important trade and investment relationship;

Recognizing that open and competitive markets are the key drivers of economic efficiency, innovation and wealth creation;

Recognizing the importance of ongoing liberalization of trade in goods and services at the multilateral level;

Aware of the growing importance of trade and investment for the economies of the Asia-Pacific region;

Reaffirming their rights, obligations and undertakings under the Marrakesh Agreement Establishing the World Trade Organization, and other multilateral, regional, and bilateral agreements and arrangements to which they are both Parties;

Recognizing that economic development, social development, and environmental protection are interdependent and mutually reinforcing components of sustainable development, and that an open and non-discriminatory multilateral trading system can play a major role in achieving sustainable development;

Reaffirming their commitment to achieving the Asia-Pacific Economic Co-operation goals of  free and open trade and investment;

Reaffirming their commitment to securing trade liberalization and an outward-looking approach to trade and investment;

Reaffirming their shared commitment to facilitating bilateral trade through removing or reducing  technical, sanitary and phytosanitary barriers to the movement of goods between the Parties;

Desiring to promote competition;

Desiring to promote transparency and to eliminate bribery and corruption in business transactions;

Recognizing that liberalized trade in goods and services will assist the expansion of trade and investment flows, raise the standard of living, and create new employment opportunities in their respective territories;

Desiring to expand trade in services on a mutually advantageous basis, under conditions of  transparency and progressive liberalization, with the aim of securing an overall balance of rights and obligations, while recognizing the rights of each Party to regulate, and to introduce new regulations, giving due respect to national policy objectives;

Reaffirming the importance of pursuing the above in a manner consistent with the protection and enhancement of the environment, including through regional environmental cooperative activities and implementation of multilateral environmental agreements to which they are both parties; and

Affirming their commitment to encourage the accession to this Agreement by other States in order to further the liberalization of trade in goods and services between States;

Have agreed as follows:

CHAPTER 1 : ESTABLISHMENT OF A FREE TRADE AREA AND DEFINITIONS

ARTICLE 1.1 : GENERAL

1. The Parties to this Agreement, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish a free trade area in accordance with the provisions of this Agreement.

2. The Parties reaffirm their existing rights and obligations with respect to each other under existing bilateral and multilateral agreements to which both Parties are party, including the WTO Agreement.

3. This Agreement shall not be construed to derogate from any international legal obligation between the Parties that entitles goods or services, or suppliers of goods or services, to treatment more favorable than that accorded by this Agreement.

ARTICLE 1.2 : GENERAL DEFINITIONS

For purposes of this Agreement, unless otherwise specified:

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

2. days means calendar days;

3. enterprise means any entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, sole proprietorship, joint venture or other association;

4. enterprise of a Party means an enterprise constituted or organized under the law of a Party;

5. GATS means the General Agreement on Trade in Services;

6. GATT 1994 means the General Agreement on Tariffs and Trade 1994;

7. goods of a Party means domestic products as these are understood in GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party;

8. government procurement means the process by which a government obtains the use of  or acquires goods or services, or any combination thereof, for governmental purposes and not  with a view to commercial sale or resale, or use in the production or supply of goods or services for commercial sale or resale;

9. measure includes any law, regulation, procedure, requirement or practice;

10. national means a natural person referred to in Annex 1A;

11. originating good has the meaning established in Chapter 3 (Rules of Origin);

12. person means a natural person or enterprise;

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

14. territory means for a Party the territory of that Party as set out in Annex 1A;

15. TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights;

16. WTO means the World Trade Organization; and

17. WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization.

ANNEX 1A

CERTAIN DEFINITIONS

For purposes of this Agreement:

1. national means:

(a) with respect to Singapore, any person who is a citizen within the meaning of its Constitution and domestic laws; and

(b) with respect to the United States, national of the United States as defined in Title III of the Immigration and Nationality Act.

2. territory means:

(a) with respect to Singapore, its land territory, internal waters and territorial sea as well as the maritime zones beyond the territorial sea, including the seabed and subsoil, over which the Republic of Singapore exercises sovereign rights or  jurisdiction under its national laws and international law for the purpose of exploration and exploitation of the natural resources of such areas; and

(b) with respect to the United States,

(i) the customs territory of the United States which includes the 50 states, the  District of Columbia and Puerto Rico;

(ii) the foreign trade zones located in the United States and Puerto Rico; and

(iii) any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources.

CHAPTER 2 : NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS

ARTICLE 2.1 : NATIONAL TREATMENT

Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretative notes. To this end, Article III of GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, subject  to Annex 2A.

ARTICLE 2.2 : ELIMINATION OF DUTIES

1. Except as otherwise provided in this Agreement, each Party shall progressively eliminate  its customs duties on originating goods of the other Party in accordance with Annexes 2B (U.S. Schedule) and 2C (Singapore Schedule).

2. A Party shall not increase an existing customs duty or introduce a new customs duty on imports of an originating good, other than as permitted by this Agreement, subject to Annex 2A.

3. Upon request by any Party, the Parties shall consult to consider accelerating the elimination of customs duties as set out in their respective schedules. An agreement by the Parties to accelerate the elimination of customs duties on an originating good shall be treated as an amendment to Annexes 2B and 2C, and shall enter into force after the Parties have exchanged written notification certifying that they have completed necessary internal legal procedures and on such date or dates as may be agreed between them.

ARTICLE 2.3 : CUSTOMS VALUE

Each Party shall apply the provisions of the Customs Valuation Agreement for the purposes of determining the customs value of goods traded between the Parties.

ARTICLE 2.4 : EXPORT TAX

A Party shall not adopt or maintain any duty, tax or other charge on the export of any good to the territory of the other Party.

ARTICLE 2.5 : TEMPORARY ADMISSION

1. Each Party shall grant duty-free temporary admission for the following goods, imported by or for the use of a resident of the other Party:

(a) professional equipment, including software and broadcasting and cinematographic equipment, necessary for carrying out the business activity, trade, or profession of a business person who qualifies for temporary entry pursuant to the laws of the importing country; and

(b) goods intended for display or demonstration at exhibitions, fairs, or similar events, including commercial samples for the solicitation of orders, and advertising films.

2. A Party shall not condition the duty-free temporary admission of a good referred to in paragraph 1, other than to require that such good:

(a) be used solely by or under the personal supervision of a resident of the other Party in the exercise of the business activity, trade, or profession of that person;

(b) not be sold or leased or consumed while in its territory;

(c) be accompanied by a security in an amount no greater than the charges that would otherwise be owed on entry or final importation, releasable on exportation of the good;

(d) be capable of identification when exported;

(e) be exported on the departure of that person or within such other period of time as is reasonably related to the purpose of the temporary admission, to a maximum period of three years from the date of importation;

(f) be imported in no greater quantity than is reasonable for its intended use; and

(g) be otherwise admissible into the Party’s territory under its laws.

3. If any condition that a Party imposes under paragraph 2 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on entry or final importation of the good.

4. Each Party, through its Customs authorities, shall adopt procedures providing for the expeditious release of the goods described in paragraph 1. To the extent possible, when such goods accompany a resident of the other Party seeking temporary entry, and are imported by that person for use in the exercise of a business activity, trade, or profession of that person, the procedures shall allow for the goods to be released simultaneously with the entry of that person subject to the necessary documentation required by the Customs authorities of the importing Party.

5. Each Party shall, at the request of the person concerned and for reasons deemed valid by its Customs authorities, extend the time limit for temporary admission beyond the period initially fixed.

6. Each Party shall permit temporarily admitted goods to be exported through a customs port other than that through which they were imported.

7. Each Party shall relieve the importer of liability for failure to export a temporarily admitted good upon presentation of satisfactory proof to the Party’s Customs authorities that the good has been destroyed within the original time limit for temporary admission or any lawful extension. Prior approval will have to be sought from the Customs authorities of the importing  Party before the good can be so destroyed.

ARTICLE 2.6 : GOODS RE-ENTERED AFTER REPAIR OR ALTERATION

1. A Party shall not apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been exported temporarily from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in its territory.

2. A Party shall not apply a customs duty to a good, regardless of its origin, imported  temporarily from the territory of the other Party for repair or alteration. 

3. For purposes of this Article:

(a) the repairs or alterations shall not destroy the essential characteristics of the good, or change it into a different commercial item;

(b) operations carried out to transform unfinished goods into finished goods shall not be considered repairs or alterations; and

(c) parts or pieces of the goods may be subject to repairs or alterations.

ARTICLE 2.7 : IMPORT AND EXPORT RESTRICTIONS

1. Except as otherwise provided in this Agreement, a Party shall not adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994, including its interpretative notes, and to this end Article XI of  GATT 1994, including its interpretative notes, is incorporated into and made a part of this Agreement.

2. The Parties understand that the GATT 1994 rights and obligations incorporated by paragraph 1 prohibit, in any circumstances in which any other form of restriction is prohibited, export price requirements and, except as permitted in enforcement of countervailing and antidumping orders and undertakings, import price requirements.

3. In the event that a Party adopts or maintains a prohibition or restriction on the importation from or exportation to a non-Party of a good, nothing in this Agreement shall be construed to prevent the Party from:

(a) limiting or prohibiting the importation from the territory of the other Party of such good of that non-Party; or

(b) requiring as a condition of export of such good of the Party to the territory of the other Party, that the good not be re-exported to the non-Party, directly or indirectly, without being consumed in the territory of the other Party.

4. Paragraphs 1 through 3 shall not apply to the measures set out in Annex 2A.

5. Nothing in this Article shall be construed to affect a Party’s rights and obligations under the WTO Agreement on Textiles and Clothing.

ARTICLE 2.8 : MERCHANDISE PROCESSING FEE

A Party shall not adopt or maintain a merchandise processing fee for originating goods.

ARTICLE 2.9 : DISTILLED SPIRITS

Singapore shall harmonize its excise taxes on imported and domestic distilled spirits. Such harmonization of the aforesaid excise duties shall be carried out in stages and shall be completed by 2005.

ARTICLE 2.10 : BROADCASTING APPARATUS

A Party shall not maintain any import ban on broadcasting apparatus, including satellite dishes.

ARTICLE 2.11 : CHEWING GUM

Singapore shall allow the importation of chewing gum with therapeutic value for sale and supply, and may subject such products to laws and regulations relating to health products.

ARTICLE 2.12 : TARIFF TREATMENT OF NON-ORIGINATING COTTON AND MAN-MADE FIBER APPAREL GOODS (TARIFF PREFERENCE LEVELS)

1. Subject to paragraphs 3 and 4, the United States shall apply the applicable rate of duty under paragraph 2 to imports of cotton or man-made fiber apparel goods provided for in Chapters 61 and 62 of the Harmonized System and covered by the U.S. categories listed in  Annex 2B that are both cut (or knit to shape) and sewn or otherwise assembled in Singapore from fabric or yarn produced or obtained outside the territory of a Party, and that meet the applicable conditions for preferential tariff treatment under this Agreement, other than the  condition that they be originating goods.

2. The rate of duty applicable to goods described in paragraph 1 is the United States most-favored- nation rate of duty reduced in five equal annual increments, beginning on the date this Article enters into force, such that the rate of duty shall be zero beginning on the first day of the fifth year after that date .

3. Paragraph 1 shall not apply to imports of goods described in that paragraph in quantities greater than:

(a) 25,000,000 square meter equivalents ("SME") in the first year following entry into force of this Article;

(b) 21,875,000 SME in the second year following entry into force of this Article;

(c) 18,750,000 SME in the third year following entry into force of this Article;

(d) 15,625,000 SME in the fourth year following entry into force of this Article;

(e) 12,500,000 SME in the fifth year following entry into force of this Article;

(f) 9,375,000 SME in the sixth year following entry into force of this Article;

(g) 6,250,000 SME in the seventh year following entry into force of this Article; and

(h) 3,125,000 SME in the eighth year following entry into force of this Article.

For purposes of this paragraph, quantities of textile and apparel goods shall be converted into SME according to the conversion factors set forth in Annex 2D.

4. This Article shall cease to apply beginning on the date that is nine years after entry into force of this Article.

ARTICLE 2.13 : DEFINITIONS

For purposes of this Chapter, customs duty includes any customs or import duty and a charge of  any kind imposed in connection with the importation of a good, including any form of surtax or surcharge in connection with such importation, but does not include any:

(a) charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994 in respect of the like domestic good or in respect of goods from which the imported good has been manufactured or produced in whole or in part;

(b) antidumping or countervailing duty that is applied pursuant to a Party’s domestic law;

(c) fee or other charge in connection with importation commensurate with the cost of services rendered; or

(d) duty imposed pursuant to Article 5 of the WTO Agreement on Agriculture.

APPLICATION OF CHAPTER 2 : NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS

Articles 2.1, 2.2, and 2.7 shall not apply to:

(a) controls by the United States on the export of logs of all species;

(b) (i) measures under existing provisions of the Merchant Marine Act of 1920, 46 App. U.S.C. § 883; the Passenger Vessel Act, 46 App. U.S.C. §§ 289, 292 and 316; and 46 U.S.C. § 12108, to the extent that such measures  were mandatory legislation at the time of the United States’ accession to the General Agreement on Tariffs and Trade 1947 and have not been  amended so as to decrease their conformity with Part II of GATT 1947;

(ii) the continuation or prompt renewal of a non-conforming provision of any statute referred to in clause (i); and

(iii) the amendment to a non-conforming provision of any statute referred to in subparagraph (b)(i) to the extent that the amendment does not decrease the conformity of the provision with Articles 2.1 and 2.7;

(c) actions authorized by the Dispute Settlement Body of the WTO.

ANNEX 2B

The U.S. Schedule to Annex 2B attached as a separate volume.

ANNEX 2C

The Singapore Schedule to Annex 2C attached as a separate volume.

ANNEX 2D

CONVERSION FACTORS

The following conversion factors shall be used to calculate quantities in SME for purposes of  Article 2.12.

CHAPTER 3 : RULES OF ORIGIN

SECTION A : ORIGIN DETERMINATION

ARTICLE 3.1 : ORIGINATING GOODS

For purposes of this Agreement, an originating good means a good:

(a) wholly obtained or produced entirely in the territory of one or both of the Parties;

or

(b) that has satisfied the requirements specified in Annex 3A; or

(c) otherwise provided as an originating good under this Chapter.

ARTICLE 3.2 : TREATMENT OF CERTAIN PRODUCTS

1. Each Party shall provide that a good listed in Annex 3B is an originating good when imported into its territory from the territory of the other Party.

2. Within six months after entry into force of this Agreement, the Parties shall meet to explore the expansion of the product coverage of Annex 3B. The Parties shall consult regularly to review the operation of this Article and consider the addition of goods to Annex 3B.

ARTICLE 3.3 : DE MINIMIS

1. Each Party shall provide that a good that does not undergo a change in tariff classification pursuant to Annex 3A is nonetheless an originating good if:

(a) the value of all non-originating materials used in the production of the good that do not undergo the required change in tariff classification does not exceed 10 percent of the adjusted value of the good; and

(b) the good meets all other applicable criteria set forth in this Chapter for qualifying as an originating good.

The value of such non-originating materials shall, however, be included in the value of non-originating materials for any applicable regional value content requirement for the good.

2. Paragraph 1 does not apply to:

(a) a non-originating material provided for in chapter 4 of the Harmonized System or in subheading 1901.90 that is used in the production of a good provided for in chapter 4 of the Harmonized System;

(b) a non-originating material provided for in chapter 4 of the Harmonized System or in subheading 1901.90 that is used in the production of a good provided for in the following provisions: subheadings 1901.10, 1901.20 or 1901.90; heading 2105; or subheadings 2106.90, 2202.90, or 2309.90;

(c) a non-originating material provided for in heading 0805 or subheadings 2009.11 through 2009.30 that is used in the production of a good provided for in subheadings 2009.11 through 2009.30, or subheadings 2106.90 or 2202.90;

(d) a non-originating material provided for in chapter 15 of the Harmonized System that is used in the production of a good provided for in headings 1501 through 1508, 1512, 1514 or 1515;

(e) a non-originating material provided for in heading 1701 that is used in the production of a good provided for in headings 1701 through 1703; 

(f) a non-originating material provided for in chapter 17 of the Harmonized System or heading 1805 that is used in the production of a good provided for in subheading 1806.10;

(g) a non-originating material provided for in headings 2203 through 2208 that is used in the production of a good provided for in headings 2207 or 2208; and

(h) a non-originating material used in the production of a good provided for in Chapters 1 through 21 of the Harmonized System unless the non-originating material is provided for in a different subheading than the good for which origin is being determined under this Article.

For purposes of this paragraph, heading and subheading mean, respectively, a heading and subheading of the Harmonized System.

3. A textile or apparel good provided for in Chapters 50 through 63 of the Harmonized System that is not an originating good, because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in Annex 3A, shall nonetheless be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than seven percent of the total weight of that component. Notwithstanding the preceding sentence, a textile or apparel good containing elastomeric yarns in the component of the good that determines the tariff classification of the good shall be an originating good only if such yarns are wholly formed in the territory of a Party.

ARTICLE 3.4 : ACCUMULATION

1. Originating materials from the territory of a Party, used in the production of a good in the territory of the other Party, shall be considered to originate in the territory of the other Party.

2. A good is an originating good when it is produced in the territory of one or both Parties by one or more producers, provided that the good satisfies the requirements in Article 3.1 and all other applicable requirements of this Chapter.

ARTICLE 3.5 : REGIONAL VALUE CONTENT

Where Annex 3A refers to a regional value content, each Party shall provide that the regional value content of a good shall be calculated on the basis of one of the following methods:

(a)	Build-down Method RVC = AV - VNM x 100                 AV where RVC is the regional value content, expressed as a percentage; AV is the adjusted value, and VNM is the value of non-originating materials that are acquired and used by the producer in the production of the good.
(b)	Build-up Method RVC = VOM x 100             AV where RVC is the regional value content, expressed as a percentage; AV is the adjusted value; and VOM is the value of originating materials that are acquired or self-produced, and used by the producer in the production of the good.

ARTICLE 3.6 : VALUE OF MATERIALS

1. Each Party shall provide that for purposes of calculating the regional value content of a good and for purposes of applying the de minimis rule, the value of a material is:

(a) for a material imported by the producer of the good, the adjusted value of the material;

(b) for a material acquired in the territory where the good is produced, except for materials within the meaning of subparagraph (c), the adjusted value of the material; or

(c) for a material that is self-produced, or where the relationship between the producer of the good and the seller of the material influenced the price actually paid or payable for the material, including a material obtained without charge, the sum of:

(i) all expenses incurred in the production of the material, including general expenses; and

(ii) an amount for profit.

2. Each Party shall provide that the value of materials may be adjusted as follows:

(a) for originating materials, the following expenses may be added to the value of the material if not included under paragraph 1:

(i) the costs of freight, insurance, packing, and all other costs incurred in transporting the material to the location of the producer;

(ii) duties, taxes and customs brokerage fees on the material paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; and

(iii) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-product; and

(b) for non-originating materials, where included under paragraph 1, the following expenses may be deducted from the value of the material:

(i) the costs of freight, insurance, packing, and all other costs incurred in transporting the material to the location of the producer;

ii) duties, taxes, and customs brokerage fees on the material paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable;

(iii) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products;

(iv) the cost of processing incurred in the territory of a Party in the production of the non-originating material; and

(v) the cost of originating materials used in the production of the non-originating material in the territory of a Party.

ARTICLE 3.7 : ACCESSORIES, SPARE PARTS, AND TOOLS

Each Party shall provide that accessories, spare parts, or tools delivered with a good that form part of the good's standard accessories, spare parts, or tools, shall be treated as originating goods if the good is an originating good, and shall be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification, provided that:

(a) the accessories, spare parts, or tools are not invoiced separately from the good;

(b) the quantities and value of the accessories, spare parts, or tools are customary for the good; and

(c) if the good is subject to a regional value content requirement, the value of the accessories, spare parts, or tools shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

ARTICLE 3.8 : FUNGIBLE GOODS AND MATERIALS

1. Each Party shall provide that the determination of whether fungible goods or materials are originating goods shall be made either by physical segregation of each good or material or through the use of any inventory management method, such as averaging, last-in, first-out, or first-in, first out, recognized in the generally accepted accounting principles of the Party in which the production is performed or otherwise accepted by the Party in which the production is performed.

2. Each Party shall provide that that an inventory management method selected under paragraph 1 for particular fungible goods or materials shall continue to be used for those fungible goods or materials throughout the fiscal year of the person that selected the inventory management method.

ARTICLE 3.9 : PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE

Each Party shall provide that packaging materials and containers in which a good is packaged for retail sale, if classified with the good, shall be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 3A and, if the good is subject to a regional value-content requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

ARTICLE 3.10 : PACKING MATERIALS AND CONTAINERS FOR SHIPMENT

Each Party shall provide that packing materials and containers in which a good is packed for shipment shall be disregarded in determining whether:

(a) the non-originating materials used in the production of the good undergo an applicable change in tariff classification set out in Annex 3A; and

(b) the good satisfies a regional value content requirement.

ARTICLE 3.11 : INDIRECT MATERIALS

Each Party shall provide that an indirect material shall be treated as an originating material without regard to where it is produced and its value shall be the cost registered in the accounting records of the producer of the good.

ARTICLE 3.12 : THIRD COUNTRY TRANSPORTATION

A good shall not be considered to be an originating good if the good undergoes subsequent production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the good to the territory of a Party.

SECTION B : SUPPORTING INFORMATION AND VERIFICATION

ARTICLE 3.13 : CLAIMS FOR PREFERENTIAL TREATMENT

1. Each Party shall provide that an importer may make a claim for preferential treatment under this Agreement based on the importer’s knowledge or on information in the importer’s possession that the good qualifies as an originating good.

2. Each Party may require that an importer be prepared to submit, upon request, a statement setting forth the reasons that the good qualifies as an originating good, including pertinent cost and manufacturing information. The statement need not be in a prescribed format, and may be submitted electronically, where feasible.

ARTICLE 3.14 : OBLIGATIONS RELATING TO IMPORTATIONS

1. Each Party shall grant any claim for preferential treatment under this Agreement made in accordance with this Section, unless the Party possesses information that the claim is invalid.

2. A Party may deny preferential treatment under this Agreement to an imported good if the importer fails to comply with any requirement of this Chapter.

3. If a Party denies a claim for preferential treatment under this Agreement, it shall issue a written determination containing findings of fact and the legal basis for the determination.

4. The importing Party shall not subject an importer to any penalty for making an invalid claim for preferential treatment if the importer:

(a) upon becoming aware that such claim is not valid, promptly and voluntarily corrects the claim and pays any duty owing; and

(b) in any event, corrects the claim and pays any duty owing within a period determined by the Party, which shall be at least one year from submission of the invalid claim.

ARTICLE 3.15 : RECORD KEEPING REQUIREMENT

Each Party may require that importers maintain for up to five years after the date of importation records relating to the importation of the good, and may require that an importer provide, upon request, records which are necessary to demonstrate that a good qualifies as an originating good, as stipulated in Article 3.13.2, including records concerning:

(a) the purchase of, cost of, value of, and payment for, the good;

(b) the purchase of, cost of, value of, and payment for, all materials, including indirect materials, used in the production of the good; and

(c) the production of the good in the form in which the good is exported.

ARTICLE 3.16 : VERIFICATION

For purposes of determining whether a good imported into its territory from the territory of the other Party qualifies as an originating good, a Party may conduct a verification by means of:

(a) requests for information from the importer;

(b) written requests for information to an exporter or a producer in the territory of the other Party;

(c) requests for the importer to arrange for the producer or exporter to provide information directly to the Party conducting the verification;

(d) information received directly by the importing Party from an exporter or a producer as a result of a process described in Article 3.13.2;

(e) visits to the premises of an exporter or a producer in the territory of the other Party, in accordance with any procedures that the Parties jointly adopt pertaining to the verification; or

(f) such other procedures as the Parties may agree.

ARTICLE 3.17: CERTAIN APPAREL GOODS

Notwithstanding any other provision of this Agreement, the United States shall consider an apparel good listed in Chapter 61 or 62 of Annex 3A to be an originating good if it is both cut (or knit to shape) and sewn or otherwise assembled in one or both Parties from fabric or yarn, regardless of origin, designated by the appropriate U.S. government authority as fabric or yarn not available in commercial quantities in a timely manner in the United States. Such designation must have been made in a notice published in the Federal Register of the United States identifying apparel goods made from such fabric or yarn as eligible for entry into the United States under subheading 9819.11.24 or 9820.11.27 of the Harmonized Tariff Schedule of the United States as of November 15, 2002. For purposes of this Article, reference in such a notice to yarn or fabric formed in the United States shall be deemed to include yarn or fabric formed in either Party.

SECTION C : CONSULTATION AND MODIFICATIONS

ARTICLE 3.18 : CONSULTATION AND MODIFICATIONS

1. The Parties shall consult and cooperate to ensure that this Chapter is applied in an effective and uniform manner.

2. The Parties shall consult regularly to discuss necessary amendments to this Chapter and its Annexes, taking into account developments in technology, production processes, and other related matters, pursuant to Article 20.3 (Consultations).

3. Within six months after entry into force of this Agreement, the Parties shall meet:

(a) to consider possible modifications to Annex 3A, including an assessment of the operation and use of the RVC;

(b) the addition of products to Annex 3B; and

(c) to review and consider possible modifications to Annex 3C.

4.

(a) On the request of either Party, the Parties shall consult:

(i) to consider whether the rules of origin applicable to particular textile or apparel goods under this Chapter should be revised to address availability of supply of fibers, yarns or fabrics in the territories of the Parties; or

(ii) to review the rules of origin applicable to particular textile or apparel goods in light of

(A) the effects of increasing global competition,

(B) the termination of the WTO Agreement on Textiles and Clothing and the full integration of the textile and apparel sector into GATT 1994, and

(C) eventual harmonization of rules of origin pursuant to Part IV of the WTO Agreement on Rules of Origin.

(b) In the consultations referred to in subparagraph (a)(i), each Party shall consider all data presented by the other Party showing substantial production in its territory of a particular fiber, yarn or fabric. The Parties shall consider that substantial production has been shown if a Party demonstrates that its domestic producers are capable of supplying commercial quantities of the fiber, yarn or fabric in a timely manner.

(c) The Parties shall endeavor to conclude consultations under subparagraph (a)(i) within 60 days of receipt of a request by one Party from the other Party. An amended rule of origin agreed to by the Parties shall supersede any prior rule of origin under this Agreement for the textile or apparel goods at issue, on approval by the Parties in accordance with Article 21.8 (Amendments).

(d) In consultations under subparagraph (a)(ii), the Parties shall give particular consideration to operative rules in other economic association or integration agreements and developments relating to textile and apparel production and trade.

SECTION D : DEFINITIONS

ARTICLE 3.19 : DEFINITIONS

For purposes of this Chapter:

1. adjusted value means the value determined under Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, as adjusted to exclude any costs, charges, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the merchandise from the country of exportation to the place of importation;

2. fungible goods or materials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical;

3. generally accepted accounting principles means the recognized consensus or substantial authoritative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information and the preparation of financial statements. These standards may encompass broad guidelines of general application as well as detailed standards, practices, and procedures;

4. goods wholly obtained or produced entirely in the territory of one or both of the Parties means goods that are:

(a) mineral goods extracted there;

(b) vegetable goods, as such goods are defined in the Harmonized System, harvested there;

(c) live animals born and raised there;

(d) goods obtained from hunting, trapping, fishing, or aquaculture conducted there;

(e) goods (fish, shellfish, and other marine life) take n from the sea by vessels registered or recorded with a Party and flying its flag;

(f) goods produced exclusively from products referred to in paragraph (e) on board factory ships registered or recorded with a Party and flying its flag;

(g) goods taken by a Party, or a person of a Party, from the seabed or beneath the seabed outside territorial waters, provided that the Party has rights to exploit such seabed;

(h) goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party;

(i) waste and scrap derived from

(i) production there; or

(ii) used goods collected there, provided such goods are fit only for the recovery of raw materials;

(j) recovered goods derived there from used goods; or

(k) goods produced there exclusively from goods referred to in (a) through (i) above, or from their derivatives, at any stage of production.

5. Harmonized System means the Harmonized Commodity Description and Coding System;

6. indirect material means a good used in the production, testing or inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, including:

(a) fuel and energy;

(b) tools, dies, and molds;

(c) spare parts and materials used in the maintenance of equipment and buildings;

(d) lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings;

(e) gloves, glasses, footwear, clothing, safety equipment, and supplies;

(f) equipment, devices, and supplies used for testing or inspecting the goods;

(g) catalysts and solvents; and

(h) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production;

7. material means a good that is used in the production of another good;

8. material that is self-produced means a good, such as a part or ingredient, produced by the producer and used by the producer in the production of another good

9. non-originating material means a material that has not satisfied the requirements of this Chapter;

10. preferential treatment means the customs duty rate and treatment under Article 2.8 (Merchandise Processing Fee) that is applicable to an originating good pursuant to this Agreement;

11. producer means a person who grows, raises, mines, harvests, fishes, traps, hunts, manufactures, processes, assembles or disassembles a good;

12. production means growing, raising, mining, harvesting, fishing, trapping, hunting, manufacturing, processing, assembling or disassembling a good;

13. recovered goods means materials in the form of individual parts that result from:

(a) the complete disassembly of used goods into individual parts; and

(b) the cleaning, inspecting, or testing, and as necessary for improvement to sound working condition one or more of the following processes: welding, flame spraying, surface machining, knurling, plating, sleeving, and rewinding in order for such parts to be assembled with other parts, including other recovered parts in the production of a remanufactured good of Annex 3C;

14. remanufactured good means an industrial good assembled in the territory of a Party, designated under Annex 3C, that:

(a) is entirely or partially comprised of recovered goods;

(b) has the same life expectancy and meets the same performance standards as a new good; and

(c) enjoys the same factory warranty as such a new good; and

15. used means used or consumed in the production of goods.

SECTION E : APPLICATION AND INTERPRETATION

ARTICLE 3.19 : APPLICATION AND INTERPRETATION

For purposes of this Chapter:

(a) the basis for tariff classification is the Harmonized System;

(b) any cost and value referred to in this Chapter shall be recorded and maintained in accordance with the generally accepted accounting principles applicable in the territory of the Party in which the good is produced.

PRODUCT- SPECIFIC RULES

Annex 3A is attached as a separate volume.

ANNEX 3B

INTEGRATED SOURCING INITIATIVE

Annex 3B is attached as a separate volume.

ANNEX 3C

REMANUFACTURED PRODUCTS

Annex 3C is attached as a separate volume.

CHAPTER 4 : CUSTOMS ADMINISTRATION

ARTICLE 4.1 : PUBLICATION AND NOTIFICATION

1. Each Party shall ensure that its laws, regulations, guidelines, procedures, and administrative rulings governing customs matters are promptly published, either on the Internet or in print form.

2. Each Party shall designate, establish, and maintain one or more inquiry points to address inquiries from interested persons pertaining to customs matters, and shall make available on the Internet information concerning procedures for making such inquiries.

3. To the extent possible, each Party shall:

(a) publish in advance any regulation governing customs matters that it proposes to adopt; and

(b) provide interested persons and the other Party a reasonable opportunity to  comment on such proposed regulations.

4. Nothing in this Article shall require a Party to publish law enforcement procedures and internal operational guidelines including those related to conducting risk analysis and targeting technologies, if the Party considers that publication would impede law enforcement.

ARTICLE 4.2 : ADMINISTRATION

1. Each Party shall administer in a uniform, impartial, and reasonable manner all its laws, regulations, decisions, and rulings governing customs matters.

2. Each Party shall ensure that its laws and regulations governing customs matters are not prepared, adopted, or applied with a view to or with the effect of creating arbitrary or unwarranted procedural obstacles to international trade.

ARTICLE 4.3 : ADVANCE RULINGS

1. Each Party shall provide for the issuance of written advance rulings to a person described  in subparagraph 2(a) concerning tariff classification, questions arising from the application of the Customs Valuation Agreement, country of origin, and the qualification of a good as an originating good under this Agreement.

2. Each Party shall adopt or maintain procedures for the issuance of advance rulings that:

(a) provide that an importer in its territory or an exporter or producer in the territory of the other Party may request such a ruling prior to the importation in question;

(b) include a detailed description of the information required to process a request for an advance ruling; and

(c) provide that the advance ruling be based on the facts and circumstances presented by the person requesting the ruling.

3. Each Party shall provide that its customs authorities:

(a) may request, at any time during the course of evaluating a request for an advance ruling, additional information necessary to evaluate the request;

(b) shall issue the advance ruling expeditiously, and within 120 days after obtaining all necessary information; and

(c) shall provide, upon request of the person who requested the advance ruling, a full explanation of the reasons for the ruling.

4. Subject to paragraph 5, each Party shall apply an advance ruling to importations into its territory beginning on the date of issuance of the ruling or such date as may be specified in the ruling. The treatment provided by the advance ruling shall be applied to importations without regard to the identity of the importer, exporter, or producer, provided that the facts and circumstances are identical in all material respects.

5. A Party may modify or revoke an advance ruling upon a determination that the ruling was based on an error of fact or law, or if there is a change in law consistent with this Agreement, a material fact, or circumstances on which the ruling is based. The issuing Party shall postpone the effective date of such modification or revocation for a period of not less than 60 days where the person to whom the ruling was issued has relied in good faith on that ruling.

ARTICLE 4.4 : REVIEW AND APPEAL

1. With respect to determinations relating to customs matters, each Party shall provide that importers in its territory have access to:

(a) at least one level of administrative review of determinations by its customs authorities independent of the official or office responsible for the decision under review;^4-1 and

(b) judicial review of decisions taken at the final level of administrative review.

ARTICLE 4.5 : COOPERATION

1. Each Party shall endeavor to provide the other Party with advance notice of any significant modification of administrative policy or other similar development related to its laws or regulations governing importations that is likely to substantially affect the operation of this Agreement.

2. The Parties shall through their competent authorities and in accordance with this Chapter, cooperate in achieving compliance with their respective laws or regulations governing importations pertaining to:

(a) implementation and operation of this Agreement;

(b) restrictions and prohibitions on imports or exports;

(c) other issues that the Parties may agree.

3. Where a Party has a reasonable suspicion of unlawful activity related to its laws or regulations governing importations, it may request the other Party to provide the following types of information pertaining to trade transactions relevant to that activity that took place no more than five years before the date of the request, or from the date of discovery of the apparent offense in cases of fraud and in other cases on which the Parties may agree:

(a) the name and address of the importer, exporter, manufacturer, buyer, vendor, broker, or transporter;

(b) shipping information relating to container number, size, port of loading before arrival, destination port after departure, name of vessel and carrier, the country of origin, place of export, mode of transportation, port of entry of the goods, and cargo description; and

(c) classification number, quantity, unit of measure, declared value, and tariff treatment.

The requesting Party shall make its request in writing; shall specify the grounds for reasonable suspicion and the purposes for which the information is sought; and shall identify the requested information with sufficient specificity for the other party to locate and provide the information. For example, the requesting Party may identify the importer, exporter, country of origin, the time period, port or ports of entry, cargo description, or Harmonized System number applicable to the importation or exportation in question.

4. For purposes of paragraph 3, a reasonable suspicion of unlawful activity means a suspicion based on one or more of the following types of relevant factual information obtained from public or private sources:

(a) historical evidence that a specific importer, exporter, manufacturer, producer, or other company involved in the movement of goods from the territory of one Party to the territory of the other Party has not complied with a Party’s laws or regulations governing importations;

(b) historical evidence that some or all of the enterprises involved in the movement  from the territory of one Party to the territory of the other Party of goods within a specific product sector where goods are moving from the territory of one Party to the territory of the other Party has not complied with a Party’s laws or regulations governing importations; or

(c) other information that the Parties agree is sufficient in the context of a particular request.

5. The other Party shall respond by providing available information that is material to the request.

6. Each Party shall also endeavor to provide the other Party with any other information that would assist in determining whether imports from or exports to the other Party are in compliance with applicable domestic laws or regulations governing importations, including those related to the prevention or investigation of unlawful shipments.

7. The Parties shall endeavor to provide each other technical advice and assistance for the purpose of improving risk assessment techniques, simplifying and expediting customs procedures, advancing the technical skill of personnel, and enhancing the use of technologies that can lead to improved compliance with laws or regulations governing importations. 

8. The Parties shall use their best efforts to explore additional avenues of cooperation for the purpose of enhancing each Party’s ability to enforce its laws or regulations governing importations, including by examining the establishment and maintenance of other channels of communication to facilitate the secure and rapid exchange of information, and considering efforts to improve effective coordination on importation issues, building upon the mechanisms established in this Article and the cooperation established under any other relevant agreements.

ARTICLE 4.6 : CONFIDENTIALITY

1. Where a Party providing information to the other Party in accordance with this Chapter designates the information as confidential, the other Party shall maintain the confidentiality of the information. The Party providing the information may require written assurances from the other Party prior to forwarding information that such information will be held in confidence, used only for the purposes requested, and not disclosed without specific permission of the Party providing the information, in accordance with its laws and regulations, except where the Parties agree that the information may be used or disclosed for law enforcement purposes or in the context of judicial proceedings.

2. A Party may decline to provide information requested by the other Party where the other Party has failed to act in conformity with the assurances referred to in paragraph 1.

3. Each Party shall maintain procedures to ensure that confidential information, including information the disclosure of which could prejudice the competitive position of the person providing the information, submitted in connection with the Party’s administration of its import and export laws is entitled to treatment as confidential information and protected from unauthorized disclosure.

ARTICLE 4.7 : PENALTIES

Each Party shall adopt or maintain measures that provide for the imposition of civil or
administrative penalties and, where appropriate, criminal penalties, for violations of its customs
laws and regulations governing classification, valuation, country of origin, and eligibility for
preferential treatment under this Agreement.

ARTICLE 4.8 : RELEASE AND SECURITY

1. Each Party shall adopt or maintain procedures:

(a) providing for the release of goods within a period of time no greater than that
required to ensure compliance with its customs laws;

(b) allowing, to the extent possible, goods to be released within 48 hours of arrival;

(c) allowing, to the extent possible, goods to be released at the point of arrival, without interim transfer to customs warehouses or other locations; and

(d) allowing importers who have complied with the procedures that the Party may have relating to the determination of value and payment of duty to withdraw goods from customs, but may require importers to provide security as a condition to the release of goods, when such security is required to ensure that obligations arising from the entry of the goods will be fulfilled.

2. Each Party shall:

(a) ensure that the amount of any security is no greater than that required to ensure that obligations arising from the importation of the goods will be fulfilled, and, where applicable, not in excess of the amount chargeable, based on tariff rates under domestic and international law, including this Agreement, and on valuation in accordance with the Customs Valuation Agreement;

(b) ensure that any security shall be discharged as soon as possible after its customs authorities are satisfied that the obligations arising from the importation of the goods have been fulfilled; and

(c) shall adopt procedures allowing:

(i) importers to provide security such as bank guarantees, bonds, or other non-cash financial instruments;

(ii) importers that regularly enter goods to provide security such as standing bank guarantees, continuous bonds or other non-cash financial instruments covering multiple entries; and

(iii) importers to provide security in any other forms specified by its customs authorities.

ARTICLE 4.9 : RISK ASSESSMENT

Each Party shall employ risk management systems that enable its customs authorities to concentrate inspection activities on high-risk goods and that facilitate the movement of low-risk goods, including systems which allow for the processing of information regarding an importation prior to the arrival of the imported goods.

ARTICLE 4.10 : EXPRESS SHIPMENTS

Each Party shall ensure efficient clearance of all shipments, while maintaining appropriate control and customs selection. In the event that a Party’s existing system does not ensure efficient clearance, it should adopt procedures to expedite express shipments. Such procedures shall:

(a) provide for pre-arrival processing of information related to express shipments;

(b) permit, as a condition for release, the submission of a single document in the form that the Party considers appropriate, such as a single manifest or a single declaration, covering all of the goods in the shipment by an express service company, through, if possible, electronic means;

(c) provide, where possible, for deferred payment of duties, taxes, and fees with appropriate guarantees;

(d) minimize, to the extent possible, the documentation required for the release of express shipments; and

(e) allow, in normal circumstances, for an express shipment to be released within six hours of the submission of necessary customs documentation.

ARTICLE 4.11 : DEFINITIONS

For purposes of this Chapter, customs matters means matters pertaining to the classification and valuation of goods for customs duty purposes, rates of duty, country of origin, and eligibility for preferential treatment under this Agreement, and all other procedural and substantive requirements, restrictions, and prohibitions on imports or exports, including such matters pertaining to goods imported or exported by or on behalf of travelers. Customs matters do not include matters pertaining to antidumping or countervailing duties.

CHAPTER 5 : TEXTILES AND APPAREL

ARTICLE 5.1 : SCOPE

1. This Chapter applies to measures adopted or maintained by a Party, including administrative, judicial, and enforcement actions by a Part y, and to cooperation between the Parties, relating to trade in textile and apparel goods.

2. Singapore’s obligations under this Chapter with respect to enterprises cover:

(a) conduct of enterprises in Singapore, including:

(i) production, processing, or manipulation of textile or apparel goods in its territory, including in a free trade zone,

(ii) importation of such goods into its territory, including into a free trade zone or

(iii) exportation of such goods from its territory, including from a free trade zone; and

(b) conduct of enterprises operating under the Outward Processing Arrangement, as well as maintenance of records and documents by such enterprises in Singapore that may be relevant to determining the existence or extent of circumvention.

3. In the event of any inconsistency between this Chapter and another Chapter of this Agreement, this Chapter shall prevail to the extent of the inconsistency.

ARTICLE 5.2 : ANTI-CIRCUMVENTION

1. The details of cooperation on matters relating to textile and apparel goods are as stated in this Chapter. Each Party shall take necessary and appropriate measures, including administrative, judicial and enforcement action:

(a) to aggressively enforce its laws relating to circumvention;

(b) to actively cooperate with the other Party in the enforcement of the other Party’s laws relating to circumvention; and

(c) to prevent circumvention.

2. In furtherance of paragraph 1, each Party shall maintain or adopt laws that:

(a) authorize its officials to take action to deter circumvention and to carry out obligations under this Chapter relating to information sharing; and

(b) establish criminal penalties, and civil or administrative penalties, that effectively deter circumvention.

ARTICLE 5.3 : MONITORING

1. Singapore shall establish and maintain programs to monitor the importation, production, exportation, and processing or manipulation in a free trade zone of textile and apparel goods, as specified in this Article. These programs shall provide the information necessary for each Party to ascertain whether a violation of its laws relating to trade in textile and apparel goods or an act of circumvention is occurring or has occurred.

2. Singapore shall institute a registration system covering all enterprises operating in its territory or operating under the Outward Processing Arrangement and that are engaged in the production of textile or apparel goods or the export to the United States of such goods that a person claims as originating goods or marks as products of Singapore.

3. Singapore shall register enterprises under the system described in paragraph 2 for terms of up to two years, subject to renewals of up to two years at a time. Singapore shall not authorize a textile or apparel good that a person claims as an originating good or marks as a product of Singapore to be exported to the United States unless the good is produced by a registered enterprise and exported by a registered enterprise.

4. Singapore shall establish and maintain a program to verify that textile and apparel goods that a person claims as originating goods or marks as products of Singapore and that are exported to the United States are produced by registered enterprises. This program shall include on-site government inspections of such enterprises at least twice a year and without prior notice to verify that they comply with laws of Singapore relating to trade in textile and apparel goods and that their production of and capability to produce such goods are consistent with claims regarding the origin of such goods. Under this program, Singapore shall provide to the United States:

(a) within 14 days of the completion of each such inspection, a written report regarding the results of that inspection, including any conduct discovered as a result of the inspection that Singapore believes to be a violation of either Party’s laws relating to circumvention, and

(b) each year, a written report summarizing the results of all such inspections on an enterprise-by-enterprise basis.

The first report under subparagraph (b) shall be submitted no later than 12 months after this Chapter takes effect. Singapore shall designate any information in reports under subparagraph (a) or (b) that it considers to be confidential.

5. For each shipment of textile or apparel goods that a registered enterprise produces for exportation to the United States or exports to the United States, Singapore shall require the enterprise to maintain in Singapore records relating to such production or exportation for a period of five years from the date on which such records are created. Singapore also shall require each registered enterprise that produces textile or apparel goods to maintain in Singapore records relating to its production capabilities in general, the number of persons it employs, and any other records and information sufficient to allow officials of each Party to verify the enterprise’s production and exportation of textile or apparel goods, including:

(a) records demonstrating that the materials used to produce or assemble textile and apparel goods were obtained or produced by the enterprise and were available for production, such as:

(i) bills of lading from the persons that supplied the materials;

(ii) customs clearance records or equivalent records if the materials were imported into Singapore; and

(iii) transaction records, including:

(A) commercial invoices, if the materials were purchased,

(B) transfer records,

(C) mill certificates if the materials were spun, extruded (for yarns) or woven, knitted or formed by any other fabric forming process (for example, tufting) by an enterprise of Singapore,

(D) production records if the registered enterprise produced the materials, and

(E) purchase orders if the materials were imported from a foreign producer, broker, trader, or other intermediary;

(b) with respect to textile and apparel goods the enterprise has produced that are claimed as originating goods or marked as products of Singapore, production records that substantiate the claim or marking, such as:

(i) cutting records for products assembled from cut components;

(ii) assembly or production records that the production manager maintains on the factory floor that document daily production, including workers’ daily production records, wage records, production steps, and sewing tickets; and

(iii) employee time cards, payment records, or other documentation showing which employees were working, how long they worked, and what work they performed during the period the goods were produced;

(c) with respect to textile and apparel goods that a subcontractor has produced in whole or in part for the enterprise and that are claimed as originating goods or marked as products of Singapore, records that substantiate the claim, such as:

(i) cutting records for products assembled from cut components;

(ii) if partially assembled by the subcontractor, production records documenting the partial assembly;

(iii) bills of lading; and

(iv) transfer documents to the shipper or primary contractor and proof of payment by the shipper or primary contractor for the work done; and

(d) records establishing which production processes took place outside the territory of Singapore, if a portion of the processing or operations was conducted there under the Outward Processing Arrangement, such as:

(i) records demonstrating export from Singapore of materials, components, subassemblies or finished goods for processing; and

(ii) customs records or records containing equivalent information, such as cargo manifests, showing re-importation into Singapore of the goods after processing.

6. Singapore shall establish and maintain a program to ensure that textile and apparel goods that are imported into or exported from Singapore or that are processed or manipulated in a free trade zone in Singapore en route to the United States are marked with the correct country of origin and that the documents accompanying the goods accurately describe the goods. This program shall provide for:

(a) immediate referral by Singapore officials of suspected violations of either Party’s laws relating to intentional circumvention to the appropriate enforcement authorities; and

(b) not later than 14 days after the resolution of the matter,^5-1 issuance by Singapore to the United States of a written report of

(i) each violation of a law of Singapore relating to circumvention, including a failure to maintain or produce records, and

(ii) any other act of circumvention;

involving textile or apparel goods destined for the United States, occurring in the territory of Singapore, and resulting in enforcement action by Singapore. In each case, the report shall state the enforcement action taken and the ultimate resolution of the matter. Singapore shall designate in the report any information it considers to be confidential, except that, at a minimum, Singapore may not designate the name of any enterprise that its enforcement authorities have determined to have engaged in circumvention.

ARTICLE 5.4 : COOPERATION

General

1. In furtherance of Article 5.2.1(b), on request, a Party shall, in a manner consistent with its laws and procedures,

(a) promptly obtain from an enterprise and provide to the other Party, to the extent available, all correspondence, reports, bills of lading, invoices, order confirmations, and other documents or information, relevant to circumvention, that the requesting Party considers may have taken place; and

(b) facilitate the gathering by the other Party’s enforcement authorities of information relevant to circumvention, including, as appropriate, by conducting site visits or establishing contacts with persons in the Party’s territory.

Any request for cooperation under this Article shall be made in writing and shall include a brief statement of the matter at issue and the cooperation requested.

Site Visits

2. A Party seeking to conduct site visits in the territory of the other Party shall provide a written request to the host Party’s competent authority not less than14 days before the proposed dates of the visits. The request shall identify the number of enterprises to be visited, the proposed dates of the visits, and the reason for the visits, but need not specify the identities of the enterprises to be visited.

3. The competent authority shall be prohibited from informing any person, other than officials of the host Party directly responsible for organizing the site visits, of the request and its contents. The host Party shall prohibit those officials and any other person in its territory from notifying an enterprise in advance of a visit. The responsible officials of the host Party shall seek permission to conduct a site visit from a responsible person at the enterprise at the time of the visit.

4. Responsible officials of the Party seeking to conduct site visits in the territory of the other Party shall conduct such visits together with responsible officials of the host Party and in accordance with the laws of the host Party. On completion of a site visit, the requesting Party shall brief the responsible officials of the host Party and shall subsequently provide to that Party a written report of the results of the visit. The written report shall include:

(a) the name of the enterprise visited;

(b) for each shipment checked, information discovered relating to circumvention;

(c) observations made at the enterprise relating to circumvention; and

(d) as relevant, an assessment of whether the enterprise is maintaining records of the type described in Article 5.3.5 and can demonstrate that its production of and capability to produce textile or apparel goods is consistent with claims that the textile or apparel goods it produces or has produced are originating goods or products of the host Party.

5. If the responsible person at an enterprise proposed to be visited denies permission for the site visit to occur:

(a) the visit shall not occur;

(b) the host Party shall not issue any visas or export licenses that may be required to accompany textile or apparel goods that the enterprise produces or exports when such goods are exported to the requesting Party, until the host Party determines that the enterprise’s production of and capability to produce such goods is consistent with claims that textile or apparel goods it produces or has produced are originating goods or products of the host Party; and

(c) the requesting Party may deny entry of textile or apparel goods produced or exported by the enterprise until that Party determines that the enterprise’s production of and capability to produce such goods is consistent with claims that textile or apparel goods it produces or has produced are originating goods or products of the host Party.

6. Permission for a site visit shall be deemed to have been denied if the enterprise does not allow the responsible officials of the requesting Party access to:

(a) the enterprise’s premises, including its production and storage areas and any other facilities;

(b) any production records relating to:

(i) textile or apparel goods that have been exported to the territory of the requesting Party;

(ii) the enterprise’s production capabilities in general; and

(iii) number of persons the enterprise employs; and

(c) any other records or information, including records and information of the type described in Article 5.3, relevant to a determination of whether the enterprise’s production of and capability to produce textile or apparel goods are consistent with claims that the textile and apparel goods it produces or has produced are originating goods or products of the host Party.

Establishing Facts

7. If a Party suspects that circumvention has occurred, on its request the other Party shall facilitate the gathering of the facts necessary for the requesting Party to determine whether circumvention has occurred. If a Party determines that circumvention has occurred, on its request the other Party shall facilitate the requesting Party’s establishment of any additional facts necessary to take enforcement action and to prevent circumvention. This paragraph applies to circumvention or suspected circumvention with regard to importation, exportation, processing or manipulation in a free trade zone, or transshipment.^5-2

8. If a Party requests the other Party to examine transshipped textile or apparel goods, its officials shall endeavor to examine such goods.^5-3

9. When a Party makes a request under paragraph 7 with respect to a particular shipment, it shall, to the extent possible, notify the other Party of: the importer, the exporter, the country of origin, the dates on which the shipment was entered, the port or ports of entry, and the cargo description or Harmonized System subheading of the goods.

ARTICLE 5.5 : ENFORCEMENT

1. In furtherance of Article 5.2.1, each Party shall vigorously investigate claims of violations of laws relating to circumvention and, where appropriate, bring enforcement action to address any such violations.

2. If Singapore discovers conduct by an enterprise that it suspects is a violation of either Party’s laws relating to circumvention, and the conduct has not been noted in a report under Article 5.3.4, Singapore shall note the conduct in a report provided to the United States not later than 14 days after the discovery. If Singapore suspects that the conduct noted in a report under either the first sentence of this paragraph or Article 5.3.4 involves intentional circumvention, it shall immediately investigate and report the results of the investigation to the United States within 14 days of the conclusion of the investigation. In that case, Singapore shall also immediately initiate a detailed review of all textile and apparel goods that the enterprise has produced for exportation to the United States or exported to the United States during the six months preceding the date that Singapore discovered the conduct. Singapore shall prepare a report describing the results of that review and shall transmit that report to the United States no later than 60 days after it provides the report called for under the first sentence of this paragraph or under Article 5.3.4. The Parties may agree, in light of the facts of a particular review, to extend this 60-day period.

3. A report describing the results of a review of textile and apparel goods conducted pursuant to paragraph 2 shall include the following:

(a) the name and address of the enterprise investigated;

(b) the nature of the suspected violation (for example, failure to maintain adequate production records, or making false statements relating to country of origin or production);

(c) a brief description of the evidence of a violation;

(d) any penalty imposed or other action taken;

(e) the identification numbers of the visas or export licenses corresponding to the goods and of all visas or export licenses that Singapore has issued to the enterprise during the 12 months before the date on which the conduct was discovered. If no visa or export license numbers are available, the report shall include the invoice number and date of export for each exportation of goods to the United States;

(f) the product category, description, and quantity of the goods included in the exportations to the United States; and

(g) purchase orders, bills of lading, contracts, payment records, invoices, and other records indicating the origin of the goods included in the exportations to the United States, and information identifying the importer of those goods in the United States, if Singapore possesses such information.

4. If Singapore finds that an enterprise has engaged in intentional circumvention, it shall take effective enforcement action, which shall include denying permission for an appropriate period for textile or apparel goods that the enterprise produces or exports to be exported to the United States.

5.

(a) If a Party finds that an enterprise in its territory or operating under the Outward Processing Arrangement:

(i) has failed to maintain or produce records in accordance with the Party’s laws adopted or maintained in accordance with this Chapter,^5-4  or

(ii) has engaged in conduct inconsistent with the Party’s law that was intended to or did in fact result in circumvention,

and if the Party requires a visa or export license to accompany exportations of textile or apparel goods to the territory of the other Party, then beginning on the date of the finding, the Party shall not issue, for a period at least as long as the applicable period described in paragraph 6, such a visa or export license to the enterprise.

(b) If the United States finds that an enterprise of Singapore has engaged in intentional circumvention, then beginning on the date of the finding it may deny entry into the United States, during a period no longer than the applicable period described in paragraph 6, of textile or apparel goods that the enterprise has produced or exported.

6.

(a) With respect to a first finding under paragraph 5(a) or a first finding under paragraph 5(b), the applicable period is six months.

(b) With respect to a second finding under paragraph 5(a) or a second finding under paragraph 5(b), the applicable period is two years.

(c) With respect to any further finding under paragraph 5(a) or 5(b), the applicable period shall be two years, except that where measures a Party imposed with respect to the enterprise as a result of an earlier finding under paragraph 5(a) or 5(b) are still in effect, the applicable period shall be extended by the period remaining before those measures expire.

ARTICLE 5.6 : INFORMATION SHARING

1. Within three months after the date this Chapter takes effect, Singapore shall notify the United States in writing of the names of all registered enterprises. Thereafter, Singapore shall provide the names of any newly registered, de-registered, or re-registered enterprises in written, quarterly updates to the United States.

2. At the time Singapore notifies the United States of a registered enterprise, it shall supply  profile information to the United States regarding the enterprise, and shall update the information annually. This information shall include:

(a) name of the enterprise;

(b) address of the enterprise and locations of its facilities in Singapore, and, for an enterprise operating under the Outward Processing Arrangement, location of its facilities, whether in Singapore or outside of Singapore, involved in the production of textile or apparel goods claimed to be originating goods or marked  as products of Singapore or export of such goods to the United States;

(c) telephone number, fax number, and e-mail address;

(d) statement of whether the enterprise is owned by Singapore persons, non-Singapore persons, or both;

(e) names of:

(i) the directors and their respective positions within the enterprise, and

(ii) the owners, in the case of an enterprise that is not incorporated;

(f) number of workers, skill sets (occupations), wages, hours of work, and minimum age for employment;

(g) number and type of machines the enterprise uses to produce textile or apparel goods;

(h) production capacity of the enterprise and identification of textile or apparel goods the enterprise produces; and

(i) names of customers in the United States.

ARTICLE 5.7 : CONFIDENTIALITY

1. Except as otherwise provided in this Chapter, each Party shall maintain the confidentiality of non-publicly available information, including business confidential information, that the other Party provides to it in accordance with this Chapter and has designated as confidential, unless the Party that provided the information gives permission for the information to be publicly disclosed.

2. A Party shall not disclose to a non-Party for law enforcement purposes or in connection with judicial proceedings information relating to intentional circumvention that the other Party has provided to the Party pursuant to Article 5.3, 5.4, 5.5 or 5.6, unless the other Party consents to the disclosure.

3.

(a) Subject to subparagraph (b), nothing in this Chapter shall prevent a Party from making public the name of an enterprise that the Party has found to have engaged in intentional circumvention or that has failed to demonstrate its production of or capability to produce textile or apparel goods as provided under this Chapter.

(b) If a Party makes public the name of an enterprise as described in sub-paragraph (a) and the finding underlying the disclosure is based on information provided by the other Party pursuant to Article 5.3, 5.4, 5.5 or 5.6, the Party making the disclosure shall not disclose the information provided by the other Party or the fact that it based its finding on information provided by the other Party, unless the other Party consents to the disclosure of such information or such fact.

4. If a Party considers that the other Party has not maintained the confidentiality of  information as required under this Article, it may make a written request to the other Party for consultations. The Parties shall consult within 30 days after the request is delivered with a view to agreeing on appropriate steps to ensure compliance with this Article.

ARTICLE 5.8 : CONSULTATIONS AND RELATED MATTERS

1. A Party may request consultations with the other Party under this Article, with a view to seeking a mutually satisfactory solution, if it believes that:

(a) the other Party is not complying with the terms of this Agreement relating to textile and apparel goods;

(b) circumvention relating to trade between the Parties is occurring; or

(c) the other Party is failing to effectively enforce its laws regarding circumvention.

Unless the Parties agree otherwise, they shall commence consultations within 30 days of a Party’s receipt of a written request by the other Party and conclude consultations within 90 days  of the Party’s receipt of the written request.

2. If the Parties are unable to reach a mutually satisfactory solution under paragraph 1 and  the United States has presented to Singapore clear evidence that circumvention has occurred, the United States may reduce the quantity of textile and apparel goods that may be imported into its territory from Singapore by an amount not to exceed three times the quantity of goods involved in the circumvention. In addition, the United States may revoke any preferential tariff treatment provided pursuant to this Agreement to the goods involved in the circumvention, and deny such treatment, for a period not to exceed four years, to any textile or apparel goods produced by an enterprise found to have engaged in such circumvention, including any successor of the enterprise and any other entity owned or operated by a principal of the enterprise, if such entity, of which that person is a principal, produces textile or apparel goods.^5-5

ARTICLE 5.9 : BILATERAL TEXTILE AND APPAREL SAFEGUARD ACTIONS

1. Subject to paragraphs 2 through 7 and during the transition period only, if, as a result of the reduction or elimination of a customs duty provided for in this Agreement, a textile or apparel good benefiting from preferential tariff treatment under this Agreement is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to the domestic market for that good, and under such conditions that imports of such good from the other Party constitute a substantial cause of serious damage or actual threat thereof, to a domestic industry producing a like or directly competitive good, the importing Party may, to the extent and for such time as may be necessary to prevent or remedy the serious damage and to facilitate adjustment by the domestic industry:

(a) suspend the further reduction of any rate of duty provided for under this  Agreement on the good; or

(b) increase the rate of duty on the good to a level not to exceed the lesser of:

(i) the most-favored-nation (“MFN”) applied rate of duty in effect at the time the action is taken, and

(ii) the MFN applied rate of duty in effect on the date of entry into force of this Agreement.

2. In determining serious damage, or actual threat thereof, the Party:

(a) shall examine the effect of increased imports on the particular industry, as reflected in changes in such relevant economic variables as output, productivity, utilization of capacity, inventories, market share, exports, wages, employment, domestic prices, profits, and investment, none of which is necessarily decisive; and

(b) shall not consider changes in technology or consumer preference as factors supporting a determination of serious damage or actual threat thereof.

3. A Party shall deliver without delay written notice of its intent to take action under this Article to the other Party, and shall enter into consultations with that Party.

4. The following conditions and limitations apply to any action taken under paragraph 1:

(a) no action may be maintained for a period exceeding two years, except that the  period may be extended by up to two years if the competent authorities of the Party applying the action determine, in conformity with the procedures set out in this Article, that the action continues to be necessary to prevent or remedy serious damage and to facilitate adjustment by the domestic industry, and that there is evidence that the industry is adjusting;

(b) no action may be taken by a Party against any particular good of the other Party more than once during the transition period; and

(c) on termination of the action, the rate of duty shall be the rate that would have been in effect but for the action.

5. The Party taking an action under paragraph 1 shall provide to the Party against whose good the action is taken mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the emergency action. Such concessions shall be limited to textile and apparel goods, unless the Parties otherwise agree. If the Parties concerned are unable to agree on compensation within 30 days in the consultations under paragraph 3, the exporting Party may take action with respect to textile and apparel goods of the other Party that has trade effects substantially equivalent to the action taken under paragraph 1. The Party taking such action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. However, the right to take such action shall not be exercised for the first 24 months that the action pursuant to paragraph 1 is in effect, provided that the action pursuant to paragraph 1 has been applied as a result of an absolute increase in imports and that such emergency action conforms to the provisions of this Article.

6. Nothing in this Article shall be construed to affect a Party’s rights and obligations under Chapter 7, except that an action under this Article shall be considered a “safeguard measure” for purposes of Article 7.2.7 (Conditions and Limitations). Nothing in Chapter 7 shall be construed to affect a Party's rights and obligations under this Article.

7. Nothing in this Article shall be construed to limit the ability of a Party to restrain imports  of textile and apparel goods in a manner consistent with the WTO Agreement on Textiles and Clothing or the WTO Agreement on Safeguards.

8. For purposes of this Article:

(a) substantial cause means a cause that is important and not less than any other cause;

(b) transition period means the 10-year period following entry into force of the terms of this Agreement relating to textile and apparel goods under Article 5.10.

ARTICLE 5.10 : EFFECTIVE DATE

The terms of this Agreement regarding textile and apparel goods shall take effect on the date on which:

(a) the Parties have consulted with regard to their adoption or maintenance of laws necessary to implement this Chapter and have agreed that such laws are in place, and

(b) the Parties have exchanged written notifications that their respective internal  requirements for this Chapter to take effect have been fulfilled, or on such other date as the Parties may agree.

ARTICLE 5.11 : DEFINITIONS

For purposes of this Chapter:

1. circumvention means providing a false declaration or false information for the purpose of, or with the effect of, violating or evading existing customs, country of origin labeling, or trade laws of the respective Party relating to imports of textile and apparel goods, if such action results in the avoidance of tariffs, quotas, embargoes, prohibitions, restrictions, trade remedies, including antidumping or countervailing duties, or safeguard measures, or in obtaining preferential tariff treatment. Examples of circumvention include illegal transshipment; rerouting; fraud; false declarations concerning country of origin, fiber content, quantities, description, or classification; falsification of documents; and smuggling;

2. free trade zone means any area, designated under Singapore’s Free Trade Zone Act or any successor act, used to store, assemble, mix, or otherwise manipulate any goods or to carry out such manufacture, in accordance with such act;

3. host Party means the Party in whose territory a site visit requested under Article 5.4.2 is  conducted;

4. Outward Processing Arrangement means the arrangement whereby a registered Singapore textile or apparel goods producer is permitted to process outside Singapore subsidiary or minor processes of its textile or apparel goods without affecting the Singapore country of origin status of the textile or apparel goods;

5. preferential tariff treatment means the customs duty rate that is applicable to an  originating good pursuant to Chapter 2;

6. registered enterprise means an enterprise that is a producer or exporter of textile or apparel goods and that is registered by Singapore under the system described in Article 5.3.2;

7. requesting Party means the Party seeking to conduct a site visit under Article 5.4.2;

8. textile or apparel good means a product listed in the Annex to the WTO Agreement on Textiles and Clothing; and

9. transshipment or transshipped means the removal of a good from the conveyance on which it was brought into the territory of a Party and the placement of such good on the same or another conveyance for the purpose of taking it out of the territory of the Party, including when such good undergoes processing or manipulation in a free trade zone.

CHAPTER 6 : TECHNICAL BARRIERS TO TRADE

ARTICLE 6.1 : SCOPE

This Chapter applies to technical regulations, standards, and conformity assessment procedures as defined in the WTO TBT Agreement.

ARTICLE 6.2 : ENHANCED COOPERATION AND CHAPTER 6 COORDINATOR

1. With a view to facilitating trade in goods between them, the Parties should to the maximum extent possible seek to enhance their cooperation with each other in the area of technical regulations, standards, and conformity assessment procedures and to deepen the mutual understanding and awareness of each others’ systems, including through:

(a) exchanging information on technical regulations, standards and conformity  assessment procedures;

(b) holding consultations to address and resolve any matters that may arise from the application of specific technical regulations, standards and conformity assessment procedures;

(c) promoting the use of international standards by each Party in its technical  regulations, standards and conformity assessment procedures; and 

(d) facilitating and promoting mechanisms relating to technical regulations, standards  and conformity assessment procedures that would enhance and promote trade between the Parties, including mechanisms established at APEC and other plurilateral fora.

2. In order to facilitate the cooperation described in paragraph 1, each Party shall designate a Chapter 6 Coordinator, which shall:

(a) be responsible for coordinating with interested parties in the Party’s territory in all matters pertaining to enhanced cooperation under this Chapter, including with respect to proposals for enhanced cooperation and responses to such proposals; and

(b) normally carry out its functions through agreed communication channels and meet with the other Party’s Chapter 6 Coordinator as and when they agree is necessary for the efficient and effective discharge of their functions.

ARTICLE 6.3 : CONFORMITY ASSESSMENT AND OTHER AREAS OF MUTUAL INTEREST

1. Each Party shall take steps to implement Phase I and Phase II of the APEC Mutual Recognition Arrangement for Conformity Assessment of Telecommunications Equipment with respect to the other Party.

2. The Parties should to the maximum extent possible also work towards enhancing the momentum of cooperation in line with their respective bilateral, regional and plurilateral agreements, including the APEC work program on Standards and Conformance. To achieve this objective the Parties should to the maximum extent possible examine the feasibility of cooperating with each other on conformity assessment procedures and other areas of mutual interest, including agreements where the relevant authorities from both Parties are willing to do so.

3. Each Party