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Decree No. 3989, Of 29 October 2001

Original Language Title: Decreto nÂș 3.989, de 29 de Outubro de 2001

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DECREE NO 3989, DE October 29, 2001

Disposes on the implementation of the Partial Reach Agreement between the Federative Republic of Brazil and the Cooperativision Republic of Guyana, June 27 of 2001.

THE VICE PRESIDENT OF THE REPUBLIC, in the exercise of the office of President of the Republic, using the attribution conferring you the art. 84, inciso IV, of the Constitution,

Considering that the 1980 Treaty of Montevideo, which created the Latin American Integration Association (ALADI), firmed by Brazil on August 12, 1980 and approved by the National Congress, through Legislative Decree no 66, of November 16, 1981, provides for the modality of Economic Supplementation Arrangement ;

Whereas the Plenipotentiaries of the Federative Republic of Brazil and the Cooperative Republic of Guyana, on the basis of the Treaty of Montevideo of 1980, signed on June 27, 2001 in Brasilia, the Reach Agreement between the Brazil and Guyana ;

DECRETA:

Art. 1o The Partial Reach Agreement between the Government of the Federative Republic of Brazil and the Cooperativision Republic of Guyana, signed in Brasilia on June 27, 2001, attached by copy to this Decree, shall executed and fulfilled as entirely as it contains.

Art. 2o This Decree goes into effect on the date of its publication.

Brasilia, October 29, 2001 ; 180the of Independence and 113o of the Republic.

MARCO ANTONIO DE OLIVEIRA MACIEL

Luiz Felipe de Seixas CorrĂȘa

AGREEMENT OF OPINION BETWEEN THE FEDERAL REPUBLIC OF

BRAZIL AND THE COOPERATIVE REPUBLIC OF GUIANA

The Government of the Federative Republic of the Brazil

and

The Government of the Cooperative Republic of Guyana

(hereinafter referred to as "Parties"),

CONSIDERING:

That Article 25 of the Treaty of Montevideo 1980, of which the Federative Republic of Brazil is Part-signatory, authorizes the conclusion of Partial Reach Agreements with other countries and areas of economic integration of Latin America.

The 1973 Chaguaramas Agreement, from which the Cooperative Republic of Guyana is Part-signatory.

Recognizing the importance of the Memorandum of Understanding between MERCOSUR and the Cooperative Republic of Guyana in the areas of trade and investments, signed in Rio de Janeiro, on June 28, 1999 ;

In view of the rights and obligations of the Parties to the Marrakesh Agreement, which establishes the World Trade Organization ;

Taking into consideration the differences in the level of economic development of the Parties.

Wake up the following:

C A P I T U L O I

Objective

ARTICLE 1

The goal of this agreement is to promote the increment of bilateral trade flows through the exchange of tariff preferences between the Parties, cooperation on trade themes, and growing participation of the private sector.

C A P I T U L O II

Treatment of Imports

ARTICLE 2

This Agreement is based on the granting of tariff preferences, which consist of percentage reductions of the tariffs applied to imports from third countries at the time of the customs dispatch of the products negotiated in this Agreement.

ARTICLE 3

Annexes I and II of this Agreement stipulate tariff preferences and other conditions for the importation of the products in them which are originating in the territories of the Parties.

ARTICLE 4

Tariff preferences will take effect as of the entry into force of this Agreement.

ARTICLE 5

The Parties undertake to maintain the agreed tariff preferences for the importation of the products negotiated in this Agreement, regardless of the level of tariffs applied to imports from third countries.

ARTICLE 6

The Parties agree not to maintain or adopt non-tariff measures or restrictions on trade in products negotiated in this Agreement, with the exception of the measures referred to in Article 50 of the Treaty of Montevideo 1980.

ARTICLE 7

For the purposes of this Agreement, the term "tariffs" shall be construed as customs duties and any other charge having the same effect, fiscal, monetary, exchange rate or any other nature, which focus on on imports. This concept does not include similar fees and charges that correspond to the approxieter cost of the services rendered.

ARTICLE 8

For the purposes of this Agreement, the term "restrictions" should be interpreted as non-tariff measures of an administrative, financial, exchange rate or of any other nature, by means of which one of the Parties unilaterally creates obstacles to the import of the other Party. Measures adopted as a result of the situations provided for in Article 50 of the Treaty of Montevideo 1980 are not included in this category.

C A P I T U L O III

Origin Rules

ARTICLE 9

The Parties shall apply to the goods negotiated in this Agreement the rules of origin specified in Annex III to this Agreement.

ARTICLE 10

Certificates of Origin issued by governmental authorities and other public entities or officially authorized private organizations must accompany such goods.

C A P I T U L O IV

Safer Measures

ARTICLE 11

The safeguard measures adopted under this Agreement shall consist of the temporary suspension or reduction of the tariff preferences established between the Parties.

ARTICLE 12

Carried Out the investigation by the competent authority, such measures shall apply to imported products under preferential treatment in the territory of one of the Parties, in quantities and conditions such that cause or threaten to cause serious injury to the domestic industry that produces similar or directly competing goods.

ARTICLE 13

The safeguard measure will have validity of one year, and may be renewed for the same period, consecutively, under the conditions stipulated in this Chapter.

ARTICLE 14

The Party that applies the safeguard measure must notify the other Party within the maximum period of seven (7) working days counted from its adoption.

ARTICLE 15

Part should establish a quota on imports from the other Party of the products negotiated in this Agreement in order to maintain the quantitative level of imports from a recent period that is to be interpreted as the average of the last three years on which there are statistics available. The granting of preferences and other provisions stipulated in this Agreement shall be applied to the said quotas.

ARTICLE 16

When an importing Party deems necessary the extension of the safeguard measure beyond the initial period of one year indicated in Article 13, that Party is expected to initiate negotiations with the other Party to define the terms and conditions under which that measure will continue to apply.

ARTICLE 17

The Parties shall incite the negotiations referred to in Article 16 with at least 60 days in advance to the end of the safeguard measure. In the absence of an agreement, the Party applying the safeguard measure should keep it for an additional period of one year and should preserve the quotas set out in accordance with Article 15.

ARTICLE 18

Case at the end of the additional period referred to in Article 17 a the importing Party concludes that the measure remains necessary, the Parties shall reassess the tariff preference agreed originally to the product in question.

C A P I T U L O V

Controversion solution

ARTICLE 19

The controversies that arise from the implementation of this Agreement should be directed upon direct consultations between the Parties. In the absence of an agreement within thirty (30) days from the notification of the controversy, the Parties shall bring the subject matter to the notice of the Commission established in Article 20, which it may establish or assemble a group of experts to obtain a opinion technical.

C A P I T U L O VI

Administration of the Agreement

ARTICLE 20

The Parties agree to establish an Administrative Commission, hereinafter referred to as "the Commission", to which it is to be composed of representatives of the Federative Republic of Brazil and the Cooperative Republic of Guyana.

ARTICLE 21

The Commission should be established and hold its first meeting within ninety (90) days counted as of the entry into force of this Agreement. The Commission shall issue its own rules of procedure.

ARTICLE 22

The tasks of the Commission shall be as follows:

(a) to ensure compliance with the provisions of this Agreement ;

b) Formulating recommendations to the Party with respect to the controversies that arise on the interpretation and application of this Agreement ;

c) Manter the present Agreement under constant evaluation and recommend changes ;

d) Promoting the exploitation of this Agreement by the private sector ;

and) Consider any other matter that the Parties consider necessary.

C A P I T U L O VII

Accession

ARTICLE 23

This Agreement will be open for accession by negotiation, from the other member countries of the Latin American Integration Association (ALADI) or the Caribbean Community (CARICOM).

ARTICLE 24

Accession shall be formalized, after negotiation, between the Parties and the acceding country, upon the signing of an Additional Protocol to this Agreement, which shall enter into force thirty (30) days after their deposit with the Secretary-General of ALADI.

C A P I T U L O VIII

Vigency and Depot

ARTICLE 25

This Agreement shall enter into force at the time when the Parties interchange communications in which they declare to be complete the procedures necessary for the incoporation of this Agreement to their legislations.

ARTICLE 26

The Government of the Federative Republic of Brazil shall deposit the present Agreement with the Secretary-General of ALADI in line with the provisions of the Treaty of Montevideo 1980 and the Resolutions of the Council of Ministers of ALADI.

ARTICLE 27

This Agreement shall be in force by the time limit of two (2) years. This period may be extended by agreement between the Parties.

ARTICLE 28

This Agreement may be replaced by an Economic Supplementation Agreement between the MERCOSUR and the Cooperative Republic of Guyana, at the time this enters into force.

C A P I T U L O IX

Denpronunciation

ARTICLE 29

Any of the Parties may denounce this Agreement upon communication of its decision to the other Party. The complaint shall take effect one hundred and eighty (180) days counted from the date on which the Party is given science of the complaint in writing to the other Party.

C A P I T U L O X

Emendas and Modifications

ARTICLE 30

Any of the Parties may submit proposal for amendment or modification of the provisions of this Agreement to the Commission referred to in Article 20. The decision to amend shall be taken by consensus and shall take effect with the acceptance of the Parties.

ARTICLE 31

The amendments or modifications to this Agreement shall be formalized by means of Additional Protocols.

C A P I T U L O XI

General provisions

ARTICLE 32

The importation by the Federative Republic of Brazil of the products of the Cooperative Republic of Guyana included in this Agreement shall not be subject to the application of the Additional Freight for the Renewal of the Merchant Navy by Decree Law No. 2404 of December 23, 1987, as per the provisions of Decree No. 97945 of July 11, 1989, its modifiers and supplementary.

In faith than, the Plenipotentiaries below signed, authorized in good and due form, have joined their signatures to this Agreement.

Done in Brasilia on June 27, 2001 in the Portuguese and English languages, both texts being equally valid.

BY THE GOVERNMENT OF THE FEDERAL REPUBLIC OF BRAZIL

BY THE GOVERNMENT OF THE COOPERATIVE REPUBLIC OF GUIANA

A N E X O III

RULES OF ORIGIN

ARTICLE 1

They shall be considered originating in the Parties to the following goods:

a) Goods wholly obtained or drawn up entirely in the territory of one of the Parties, namely:

i) materials or products of mineral, plant and animal reins (including those derived from hunting and fishing), extracted, harvested or caught, born in their territory or in their territorial waters, heritage and economic zones exclusive ;

ii) materials and products extracted from the sea outside their territorial waters, heritage and exclusive economic zones, by ships of their flag legally registered or rented by companies on a regular level set in their territory.

b) Goods drawn up in the territory of one of the Parties, using exclusively originating materials in their territories ;

c) Goods drawn up in their territories using materials from countries not participating in the agreement, where resulting from a process of processing carried out in one of the Parties that outwith them a new individuality, characterized by the fact that they stay classified in the NALADI/SH in position different to those of those materials.

Such goods will not be considered originating when those operations or processes in which they are used exclusively non-originating materials consist only of simple assemblies or ensamblings, division in batches, parts or volumes, selection and classification, marking, composition of sortiments of goods or other similar operations or processes.

The goods resulting from assembly or ensamblage operations carried out on the territory of one of the Parties using originating and non-originating materials, shall be considered originating when the CIF port of destination or CIF seaport of materials originating in third countries does not exceed 50% of the FOB value of export of these goods.

(d) In case the requirement set out in letter c) cannot be fulfilled, the goods using originating and non-originating materials shall be considered originating in the Parties when the CIF port of destination or CIF seaport of the materials originating in third countries does not exceed 50% of the FOB export value of these goods.

ARTICLE 2

The Parties may establish, by mutual agreement, specific requirements of origin. Such requirements shall prevail over the general requirements set out in the preceding article.

ARTICLE 3

In the definition of the specific requirements referred to in Article 2, or in the review of those that have already been established, the Parties shall take into account, individually or jointly, among others, the following elements:

I) Materials used in production:

a) Raw materials:

i-Matter-prima preponderant or that confers the product its essential characteristic ; and

ii. Main raw materials.

b) Parts or parts:

i-Part or piece that confers on the product its essential characteristic ;

ii-Parts or master parts ; and

iii-Percentage of parts or parts in relation to total weight.

II-Any kind of processing or processing of goods.

III-Valor of regional content.

Any of the Parties may request revision of the criteria set out in Article 1. To this end, the Party should substantiate its request to the other Party and submit the proposal for new requsitos for the product or products in question.

ARTICLE 4

For the purpose of determining whether a commodity originates, its production in the territory of one or both Parties by one or more producers shall be considered to have been carried out in the territory of one of the Parties by the exporter or producer, provided that the goods comply with the provisions of this Annex.

ARTICLE 5

In order for the goods included in this Agreement to benefit from tariff preferences, they must be dispatched directly from the exporting country to the importing country and be accompanied by the corresponding certificate of origin. For such effects, it is considered as direct expedition:

a) The goods transported without passing through the territory of some non-participating country to this Agreement ;

(b) goods transported in transit by one or more non-participating countries, with or without transshipment or temporary storage, under the supervision of the competent customs authority in those countries, provided that:

i-transit is justified for geographical reasons or for considerations regarding transportation requirements ;

ii-are not intended for trade, use or employment in the country of transit ;

iii-do not suffer, during their transport and deposit, any operation other than charge and discharge ; and

iv-the discharge or handling are carried out only to keep the goods in good condition or to ensure their conservation.

The intervention of third country operator shall be authorised where these comply with the provisions laid down in the items to and b of this Article and provided that such goods are accompanied by the commercial invoice issued by the intervener part and the corresponding Certificate of Origin.

ARTICLE 6

Source Certificates must be exclaims only by government authorities of the Parties. Such attribution may be delegated to other public entities or private organizations, acting in national or state jurisdiction, henceforth termed "officially authorized entities".

A governmental authority in each Party should be responsible for the verification and control of the issuance of Origin Certificates.

ARTICLE 7

The Parties shall inform their respective governmental authorities and the officially authorized entities empowered to issue Certificates Of Origin, with the registration and facsimile of the accredited signatures for that purpose.

ARTICLE 8

The Certificate of Origin is the document attesting the origin of the goods. This Certificate must arrest the following requirements:

a) to be exected by governmental authority or by officially authorized entity ;

b) Identify the goods to which you refer ;

c) Indicate unequivocally that the goods in issue originate from the Party in accordance with the provisions of this Annex.

ARTICLE 9

The application for the Certificate of Origin must be preceded by a sworn declaration, or other legal instrument of equivalent effect, subscribed by the final producer, in which the characteristics and components of the product, the description of the productive process and, at the very least, the following requirements:

a) Company or commercial name ;

b) Address or legal and industrial domicile of the premises ;

c) Description of exported merchandise and tariff position expressed in NALADI/SH;

d) Valor FOB ;

e) Description of the productive process ;

f) Demonstrative Elements of the product components indicating:

i-Material, component and / or parts and national parts.

ii-Material, component and / or parts and parts originating in the other Party:

-tariff positions expressed in NALADI/SH;

-CIF Value in US Dollars ;

-Percent of participation in the final item.

iii-Material, component and / or parts and parts originating incorporated in non-originating goods:

-tariff positions expressed in NALADI/SH;

-CIF Value in US Dollars ;

-Percent of participation in the final item.

The description of goods in the said declaration or instrument of equivalent effect should coincide with the description set out in NALADI/SH, in addition to the one in the commercial invoice and the certificate of origin.

The declaration or instrument of equivalent effect must be presented with anticipation of the application for certification

In the case of goods that are exported on a regular basis, whenever the components, processes and materials are not changed, the same declaration will be valid per cent and eighty (180) days from the date of their issue, and may be used for the issuance of Certificates of Origin during that period.

ARTICLE 10

Source Certificates must be issued in Portuguese and English and filed for the period of two (2) years from the date of their issuance and possess the corresponding serial number.

The officially authorized entities of the Parties shall maintain a permanent record of the issued Origin Certificates. This registration must contain at least the number of the Certificates, the requester and the date of issue.

The Source Certificates will be valid for 180 (one hundred and eighty) days and will be exclaims exclusively in the attached form. Such period may be extended exclusively during the time when the goods are subject to some suspensive regime of imports which does not allow for any alteration of the goods in question.

All fields of the Source Certificates must be properly filled out, under penalty of invalidity.

ARTICLE 11

In the case of doubts about the veracity of the information and the authenticity of the Certificate of Origin, government authorities will be able to apply for the governmental authority charged with the verification and control of the Certificates of Origin of the other Party additional information to clarify the theme.

In no case shall the Parties hold the import tresses of the goods in question.

In the meantime, the Parties will be able to adopt the measures they deem necessary to ensure their fiscal interest.

ARTICLE 12

The governmental authority responsible for the verification and control of the Certificates of Origin shall provide the information referred to in Article 11 within sixty (60) working days from the date of receipt of the communication correspondent. The information provided will receive confidential treatment and will be used exclusively for clarifying such questions.

ARTICLE 13

Whenever the information provided is deemed unsatisfactory, the authorities of the importing Party will be able to suspend further operations concerning goods, companies and operations involving the certifying entity in question, including those in the process of customs disembarster.

In that case, the authorities of the importing country should present the problem to the Administrator Commission, referred to in Article 20 of the Agreement.

ARTICLE 14

To check whether a commodity originates, the Parties may, through the competent authorities of the other Party:

a) Submit questionnaires in writing to the exporter or producers ;

b) Rewant that such authority to take necessary arrangements to facilitate the conduct of verification visits to the premises of the exporter or producer, with the aim of examining productive processes, the places used in the production, as well as any other activities that may contribute to the verification of the origin of the goods in issue.

c) Realize other procedures that the Parties will come to decide.

The Parties agree to facilitate the realization of reciprocal external audits.

ARTICLE 15

For the purposes of this Attachment:

"materials" means goods, raw materials, intermediate products, parts or parts used in the production of another commodity ;

"goods" designates goods subject to purchase and sale operations ;

"NALADI/SH" designates Nomenclature of the Latin American Integration Association (ALADI) ;

"non-originating goods or material" means a commodity or material which does not qualify as originating under this Annex ;

"producer" designates a person who plants, extracts, colhe, fishing, captures, hunting, manufactures, processes or assemble a merchandise ;

"production" designates planting, extraction, harvesting, fishing, catching, hunting, manufacturing, processing or assembling a commodity ;

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

Attachment (s)