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FREETRADEAGREEMENT

BETWEEN

THEPEOPLE’SREPUBLICOFCHINA

AND

THESWISSCONFEDERATION

1

PREAMBLE

ThePeople’sRepublicofChina(hereinafterreferredtoas“China”)andtheSwissConfederation(hereinafterreferredtoas“Switzerland”),hereinafterindividuallyreferredtoasa“Party”,orcollectivelyas“theParties”?

RECOGNISINGtheirlong-termandcloserelationsandcooperationinthefieldsofpoliticsandeconomy?

COMMITTEDtostrengtheningthebondsoffriendshipandcollaborationbetweenthePartiesbyestablishinganddeepeningcloseandlastingrelations?

RECOGNISINGfurtherthatafreetradeagreementshallproducemutualbenefitstoeachotherandenhancebilateraleconomicandtradecooperation?

MINDFULthateconomicdevelopment,socialdevelopmentandenvironmentalprotectionareinterdependentandmutuallyreinforcingcomponentsofsustainabledevelopmentandthatclosereconomicpartnershipcanplayanimportantroleinpromotingsustainabledevelopment?

RECOGNISINGthatthisAgreementshouldbeimplementedwithaviewtopromotingthepublicwelfareintheParties,includingraisingthestandardofliving,aswellascreatingnewjobopportunitiesandpromotingsustainabledevelopmentinamannerconsistentwithenvironmentalprotectionandconservation?

RECALLINGtheprogressmadeinbilateralrelationsaftertheestablishmentofdiplomaticrelationsandinparticularafterthesigningoftheMemorandumofUnderstandingbetweentheGovernmentofthePeople’sRepublicofChinaandtheSwissFederalCouncilonPromotingDialogueandCooperationin2007andcommittedtodeepenandexpanddialogueandcooperationinsuchareas?

COMMITTEDtothepromotionofprosperity,democracy,socialprogressandharmonyandtoupholdfreedom,equality,justiceandtheruleoflaw,reaffirmingtheircommitmenttotheCharteroftheUnitedNationsandfundamentalnormsofinternationalrelations?

DETERMINEDtoupholdthespiritofreciprocityandpromotemutuallybeneficialtraderelationsthroughtheestablishmentofawell-functioningandmutuallyadvantageousbilateralpreferentialtraderegime?

ACKNOWLEDGINGtheimportanceofgoodcorporategovernanceandcorporatesocialresponsibilityforsustainabledevelopment,andaffirmingtheiraimtoencourageenterprisestoobserveinternationallyrecognisedguidelinesandprinciplesinthisrespect?CONVINCEDthatthisAgreementwillreinforcemarketeconomyprinciplesandenhancethecompetitivenessofthefirmsofthePartiesinglobalmarkets?

SHARINGthebeliefoftheimportanceof,anddeterminedtopromoteandfurtherstrengthenthemultilateraltradingsystemasembodiedintheMarrakeshAgreementestablishingtheWorldTradeOrganization(hereinafterreferredtoasthe“WTOAgreement”)?

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BUILDINGontheirrespectiverightsandobligationsundertheWTOAgreementandothermultilateral,regionalandbilateralagreements?

HAVEAGREED,inpursuitoftheabove,toconcludethefollowingAgreement(referredtoas“thisAgreement”):

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CHAPTER1

GENERALPROVISIONS

ARTICLE1.1

Objectives

1.BasedonArticleXXIVoftheGeneralAgreementonTariffsandTrade(hereinafterreferredtoasthe“GATT1994”)andArticleVoftheGeneralAgreementonTradeinServices(hereinafterreferredtoasthe“GATS”),ChinaandSwitzerlandshallestablishafreetradeareabymeansofthisAgreementwithaviewtospurringprosperityandsustainabledevelopment.

2.TheobjectivesofthisAgreement,whichisbasedontraderelationsbetweenmarketeconomiesare:

(a)toachievetheliberalisationoftradeingoods?(b)toachievetheliberalisationoftradeinservices?(c)tomutuallyenhanceinvestmentopportunities?

(d)topromotecompetitionintheParties’markets?

(e)toensureadequateandeffectiveprotectionandenforcementofintellectualpropertyrights?

(f)toachievefurtherunderstandingofthegovernmentprocurementofthePartiesandlaythegroundforfuturecooperationinthisfield?

(g)toremoveandavoidunnecessarytechnicalbarrierstotrade,includingsanitaryandphytosanitarymeasures?

(h)todevelopinternationaltradeinsuchawayastocontributetotheobjectiveofsustainabledevelopmentandtoensurethatthisobjectiveisintegratedandreflectedintheParties’traderelationship?

andtocontributeinthiswaytotheharmoniousdevelopmentandexpansionofworldtrade.

3.ThePartiesshallinterpretandapplytheprovisionsofthisAgreementinlightofitsobjectivessetoutinparagraph2andinaccordancewithcustomaryrulesof

interpretationofpublicinternationallaw.

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ARTICLE1.2

GeographicalScope

Exceptasotherwisespecified,thisAgreementshallapplyto:

(a)withrespecttoChina,theentirecustomsterritoryofthePeople’sRepublicofChina,includingland,maritimeandairspace,andtheexclusiveeconomiczoneandthecontinentalshelfwithinwhichitexercisessovereignrightsandjurisdictioninaccordancewithinternationallawanditsdomesticlaw?and

(b)withrespecttoSwitzerland,theterritoryofSwitzerland,includingland,internalwatersandairspace,inaccordancewithinternationallawanditsdomesticlaw.

ARTICLE1.3

RelationshiptoOtherAgreements

1.ThePartiesconfirmtheirrightsandobligationsundertheWTOAgreementandtheotheragreementsnegotiatedthereundertowhichtheyarepartiesandanyotherinternationalagreementtowhichtheyareparties.

2.IfaPartyconsidersthatthemaintenanceorestablishmentofcustomsunions,freetradeareas,arrangementsforfrontiertradeorotherpreferentialagreementsbytheotherPartyhastheeffectofalteringthetraderegimeprovidedforbythisAgreement,orthatthereisinconsistencybetweenthisAgreementandotheragreementstowhichbothPartiesareparties,itmayrequestconsultations.TheotherPartyshallaffordadequateopportunityforconsultationswiththerequestingPartywithaviewtofindingamutuallysatisfactorysolutioninaccordancewithcustomaryrulesofinterpretationofpublicinternationallaw.

ARTICLE1.4

Central,RegionalandLocalGovernment

EachPartyshallensuretheobservanceofallobligationsandcommitmentsunderthisAgreementbyitsrespectiveregionalandlocalgovernmentsandauthorities,andbynon-governmentalbodiesintheexerciseofgovernmentalpowersdelegatedtothembycentral,regionalandlocalgovernmentsorauthorities.

ARTICLE1.5

Transparency

1.ThePartiesshallpublish,orotherwisemakepubliclyavailable,theirlaws,regulations,judicialdecisions,administrativerulingsofgeneralapplicationandtheirrespectiveinternationalagreements,whichmayaffecttheoperationofthisAgreement.

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2.ThePartiesshallrespondtospecificquestionsandprovide,uponrequest,

informationtoeachotheronmattersreferredtoinparagraph1,totheextentpossiblewithin30days1followingtherequest.

3.Theinformationreferredtoinparagraph2canbeconsideredtohavebeenprovidedbycopyinganotificationtoWTOforthesamematterorbyreferringtotheofficial,publicandfreeofchargeaccessiblewebsiteofthePartyconcerned.

4.IncaseofanyinconsistencybetweentheprovisionsofthisArticleandprovisionsrelatingtotransparencyinotherChapters,thelattershallprevailtotheextentoftheinconsistency.

5.ThecontactpointsestablishedinArticle14.2shallfacilitatecommunicationsbetweenthePartiesonmatterscoveredinthisArticle.UponrequestoftheotherParty,thecontactpointshallidentifytheofficeorofficialresponsibleforthematterandassist,asnecessary,infacilitatingcommunicationwiththerespondingParty.

ARTICLE1.6

DisclosureofInformation

NothinginthisAgreementshallrequirethePartiestodiscloseinformationthatwouldimpedelawenforcement,iscontrarytoitslawsorotherwisecontrarytothepublicinterest,orwouldprejudicethelegitimatecommercialinterestsofanyeconomicoperator.

1ForthepurposesofthisAgreement,“days”meanscalendardays.

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CHAPTER2

TRADEINGOODS

ARTICLE2.1

Scope

1.ThisChaptershallapply,asspecifiedtherein,toanyproducttradedbetweenthecustomsterritoriesoftheParties.ThecustomsterritoryofSwitzerlandincludestheterritoryofthePrincipalityofLiechtenstein,aslongastheCustomsUnionTreatyof29March1923betweentheSwissConfederationandthePrincipalityofLiechtensteinremainsinforce.

2.Goodsandproductsshallbeunderstoodtohavethesamemeaning,unlessthecontextotherwiserequires.

ARTICLE2.2

NationalTreatmentonInternalTaxationandRegulation

EachPartyshallaccordnationaltreatmenttotheproductsofthecustomsterritoryoftheotherPartyinaccordancewithArticleIIIoftheGATT1994.Tothisend,ArticleIIIoftheGATT1994anditsinterpretativenotesshallapplyandareherebyincorporatedintoandmadepartofthisAgreement,mutatismutandis.

ARTICLE2.3

CustomsDutiesonImports

1.Customsdutyonimportsmeansanydutyorchargeofanykindimposedinconnectionwiththeimportationofaproduct,butdoesnotincludeany:

(a)chargeequivalenttoaninternaltaximposedconsistentlywithparagraph2ofArticleIIIoftheGATT1994?

(b)anti-dumpingorcountervailingdutyappliedconsistentlywithArticleVIoftheGATT1994,theWTOAgreementonImplementationofArticleVIoftheGATT1994,ortheWTOAgreementonSubsidiesandCountervailingMeasures?and

(c)feeorotherchargeinconnectionwiththeimportationcommensuratewiththecostofservicesrendered,imposedconsistentlywiththeprovisionsofArticleVIIIoftheGATT1994.

2.ExceptasotherwiseprovidedforinthisChapter,eachPartyshall,uponentryintoforceofthisAgreement,eliminateorreduceitscustomsdutiesimposedin

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connectionwiththeimportationofproductsoriginatingineitherParty,inaccordancewiththetermsandconditionssetoutinitsScheduleinAnnexI.

3.ExceptasotherwiseprovidedinthisAgreement,neitherPartyshallincreaseanyexistingcustomsduty,oradoptanynewcustomsduty,onanoriginatingproductoftheotherParty,whichisnotinaccordancewiththetermsandconditionssetoutinitsscheduleinAnnexI.

ARTICLE2.4

BaseRateofCustomsDutiesonImports

1.ForeachproductthebaserateofcustomsdutytowhichthesuccessivereductionssetoutinAnnex1aretobeapplied,shallbethemost-favourednation(hereinafterreferredtoas“MFN”)importcustomsdutyrateappliedon1January2010.

2.IfaPartyreducesitsappliedMFNimportcustomsdutyrateafter1January2010andbeforetheendofthetariffeliminationperiod,thetariffeliminationscheduleofthatPartysetoutinAnnexIshallbeappliedtothereducedrateasfromthedateonwhichthereductionisapplied.

3.ThereducedimportcustomsdutyratescalculatedinaccordancewithAnnexI,shallbeappliedroundedtothefirstdecimalplace.

ARTICLE2.5

ImportandExportRestrictions

Withrespecttoexportandimportrestrictions,ArticleXIoftheGATT1994shallapplyandisherebyincorporatedintoandmadepartofthisAgreement,mutatismutandis.

ARTICLE2.6

StateTradingEnterprises

Withrespecttostatetradingenterprises,ArticleXVIIoftheGATT1994andtheUnderstandingontheInterpretationofArticleXVIIoftheGATT1994shallapplyandareherebyincorporatedintoandmadepartofthisAgreement,mutatismutandis.

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ARTICLE2.7

Exceptions

Withrespecttogeneralandsecurityexceptions,ArticlesXXandXXIoftheGATT1994shallapplyandareherebyincorporatedintoandmadepartofthis

Agreement,mutatismutandis.

ARTICLE2.8

ReviewMechanism

TwoyearsaftertheentryintoforceofthisAgreement,thePartiesshallintheJointCommitteereviewthisChapterandtheTariffSchedulesofthePartiessetoutinAnnexI.ThePartiesshallthereafterconductbiennialreviewsofthismatterintheJointCommittee.

9

CHAPTER3

RULESOFORIGINANDIMPLEMENTATIONPROCEDURES

SECTIONIRulesofOrigin

ARTICLE3.1

Definitions

ForthepurposesofthisChapter:

(a)“Party”meanseitherChinaorSwitzerland.ThisChapterappliestothecustomsterritoryofChinaandthecustomsterritoryofSwitzerlandasdefinedinparagraph1ofArticle2.1?

(b)“production”meansmethodsofobtainingproductsincluding,butnotlimitedto,growing,mining,harvesting,fishing,trapping,hunting,

manufacturing,processingorassemblingaproduct?

(c)“material”meansingredients,parts,components,subassembliesand/orproductsthatwerephysicallyincorporatedintoanotherproductorweresubjecttoaprocessintheproductionofanotherproduct?

(d)“non-originatingproduct”or“non-originatingmaterial”meanaproductormaterialthatdoesnotqualifyasoriginatingunderthisChapter?

(e)“originatingproduct”or“originatingmaterial”meanaproductormaterialthatqualifiesasoriginatingunderthisChapter?

(f)“customsvalue”meansthevalueasdeterminedinaccordancewiththeAgreementonImplementationofArticleVIIoftheGeneralAgreementonTariffsandTrade1994(CustomsValuationAgreement)?

(g)“ex-worksprice”meansthepricepaidfortheproductex-workstotheproducerlocatedinaPartyinwhoseundertakingthelastworkingorprocessingiscarriedout,providedthatthepriceincludesthevalueofallthematerialsused,wageandanyothercost,andprofitminusanyinternaltaxesreturnedorrepaidwhentheproductobtainedisexported?

(h)“HarmonizedSystem”and“HS”meantheHarmonizedCommodityDescriptionandCodingSystem?

(i)“chapter”,“heading”and“subheading”meanachapter(two-digitcodes),heading(four-digitcodes)orsubheading(six-digitcodes)oftheHarmonizedSystem?and

(j)“authorisedbody”meansanybodydesignatedunderdomesticlawofaPartyorbythegovernmentalauthorityofaPartytoissueaCertificateofOrigin.

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ARTICLE3.2

OriginatingProducts

ForthepurposeofthisAgreement,andunlessotherwiserequiredinthisChapter,aproductshallbeconsideredasoriginatinginaPartyif:

(a)ithasbeenwhollyobtainedinaParty,inaccordancewithArticle3.3?

(b)thenon-originatingmaterialsusedintheworkingorprocessingofthatproducthaveundergonesubstantialtransformationinaParty2,inaccordancewithArticle3.4,andmeetstheotherapplicableprovisionsofthisChapter?or

(c)ithasbeenproducedinaPartyexclusivelyfromoriginatingmaterialsofoneorbothParties.

ARTICLE3.3

WhollyObtainedProducts

Forthepurposeofsubparagraph(a)ofArticle3.2,thefollowingproductsshallbeconsideredaswhollyobtainedinaParty:

(a)mineralproductsandothernon-livingnaturallyoccurringsubstancesextractedortakenfromtheirsoil,internalwaters,territorialsea,seabedorsubsoil?

(b)vegetableproductsharvested,pickedorgatheredthere?

(c)liveanimalsbornandraisedthere,andproductsobtainedfromsuchanimals?

(d)productsobtainedbyhunting,trapping,fishing,gathering,capturingoraquacultureconductedthere?

(e)productsofseafishingandotherproductstakenfromtheterritorialseaortheExclusiveEconomicZoneofaPartybyvesselsregisteredwiththatPartyandflyingtheflagofthatParty?

(f)productsofseafishingandotherproductstakenfromthehighseabyvesselsregisteredwithaPartyandflyingtheflagofthatParty?

(g)productsprocessedormadeonboardfactoryshipsregisteredwithaPartyandflyingtheflagofthatParty,exclusivelyfromproductsreferredtoinsubparagraph(e)and(f)?

(h)productstakenfromtheseabedandsubsoiloutsidetheterritorialwatersofaParty,providedthatthePartyhastherightstoexploitsuchseabedorsubsoilunderdomesticlawinaccordancewithinternationallaw?

(i)wasteandscrapresultingfrommanufacturingoperationsconductedtherewhichfitonlyfortherecoveryofrawmaterials?

2TheworkingorprocessingofthatproductmaybecarriedoutindifferentfactorieswithinaParty.

11

(j)usedproductscollectedtherewhichfitonlyfortherecoveryofrawmaterials?and

(k)productsobtainedorproducedthereexclusivelyfromproductsreferredtoinsubparagraphs(a)to(j).

ARTICLE3.4

SubstantialTransformation

1.Aproductobtainedusingnon-originatingmaterialsshallbeconsideredtohaveundergonesubstantialtransformationiftherequirementsspecifiedinAnnexIIarefulfilled.

2.Forthepurposeofparagraph1,theoperationsprovidedforinArticle3.6areconsideredasinsufficienttoobtainoriginatingstatus.

3.WhereAnnexIIreferstoapercentageofthevalueofnon-originatingmaterial(VNM),itshallmeanthemaximumpercentageoftheVNMallowedinrelationtothe

ex-workspriceofaproduct.Thatpercentageshallbecalculatedasfollows:VNM%=VNMx100

ex-worksprice

4.VNMshallbedeterminedonthebasisofthecustomsvalueatthetimeofimportationofthenon-originatingmaterials,includingmaterialsofundeterminedorigin.Ifsuchvalueisunknownandcannotbeascertained,thefirstascertainablepricepaidorpayableforthematerialsinaPartyshallbeapplied.

5.Ifaproductwhichhasacquiredoriginatingstatusinaccordancewithparagraph1inaPartyisfurtherprocessedinthatPartyandusedasmaterialinthemanufactureofanotherproduct,noaccountshallbetakenofthenon-originatingcomponentsofthatmaterialinthedeterminationoftheoriginatingstatusoftheproduct.

ARTICLE3.5

DeMinimis

1.Notwithstandingparagraph1ofArticle3.4,non-originatingmaterialsdonothavetofulfiltheconditionssetoutinAnnexIIprovidedthattheirtotalvaluedoesnotexceed10%oftheex-worksprice.

2.ThisArticledoesnotapplytovaluecriteriasetoutinAnnexII.

ARTICLE3.6

MinimalOperationsorProcesses

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1.NotwithstandingArticle3.4,aproductshallnotbeconsideredasoriginating,ifithasonlyundergoneoneormoreofthefollowingoperationsorprocesses:

(a)operationstoensurethepreservationofproductsingoodconditionduringtransportandstorage?

(b)freezingorthawing?

(c)packagingandre-packaging?

(d)washing,cleaning,removalofdust,oxide,oil,paintorothercoverings?(e)ironingorpressingoftextilesortextileproducts?

(f)simplepaintingandpolishing?

(g)husking,partialortotalbleaching,polishing,andglazingofcerealsandrice?(h)operationstocoloursugarorformsugarlumps?

(i)peelingandremovalofstonesandshellsfromfruits,nutsandvegetables?(j)sharpening,simplegrindingorsimplecutting?

(k)sifting,screening,sorting,classifying,grading,matching?

(l)simpleplacinginbottles,cans,flasks,bags,cases,boxes,fixingoncardsorboardsandallothersimplepackagingoperations?

(m)affixingorprintingmarks,labels,logosandotherlikedistinguishingsignsonproductsortheirpackaging?

(n)simplemixingofproducts,whetherornotofdifferentkinds?

(o)simpleassemblyofpartsofarticlestoconstituteacompletearticleor

disassemblyofproductsintoparts?(p)slaughterofanimals.

2.Forthepurposeofparagraph1,“simple”describesactivitieswhichneedneitherspecialskillsnormachines,apparatusorequipmentespeciallyproducedorinstalledtocarryouttheactivity.

3.AlloperationsintheproductionofagivenproductcarriedoutinaPartyshallbetakenintoaccountwhendeterminingwhethertheworkingorprocessingundergonebythatproductisconsideredasminimaloperationsorprocessesreferredtoinparagraph1.

ARTICLE3.7

Accumulation

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1.WithoutprejudicetoArticle3.2,aproductoriginatinginaParty,whichisusedasmaterialintheproductionofaproductintheotherParty,shallbeconsideredasoriginatinginthePartywherethelastoperationsbeyondthosereferredtoinparagraph1ofArticle3.6havebeencarriedout.

2.AproductoriginatinginaParty,whichisexportedfromaPartytotheotherPartyanddoesnotundergoworkingorprocessingbeyondthosereferredtoinparagraph1ofArticle3.6,shallretainitsorigin.

ARTICLE3.8

UnitofQualification

1.Forthepurposeofdeterminingtheoriginatingstatus,theunitofqualificationofaproductormaterialshallbeconsideredasthebasicunitanddeterminedinaccordancewiththeHarmonizedSystem.

2.Pursuanttoparagraph1,

(a)whereasetofarticlesisclassifiedunderasingleheadingorsubheadinginaccordancewithGeneralInterpretativeRule3oftheHarmonizedSystem,itshallconstitutetheunitofqualification?

(b)whereaconsignmentconsistsofanumberofidenticalproductsclassifiedunderasingleheadingorsubheadingoftheHarmonizedSystem,eachproductshallbeconsideredseparatelyindeterminingwhetheritqualifiesasanoriginatingproductofaParty?and

(c)packagingshallbeincludedwiththeproductifitisincludedandclassifiedwiththatproductinaccordancewithGeneralInterpretativeRule5oftheHarmonizedSystem.Packagingusedforretailsaleshallbeconsideredasmaterialsoftheproductincalculatingthevalueofnon-originatingmaterialsusedinitsproduction.

3.Packingmaterialsandcontainersforshipmentthatareusedtoprotectaproductduringtransportationshallbedisregardedindeterminingtheoriginoftheproduct.

ARTICLE3.9

Accessories,SparePartsandTools

1.Accessories,spareparts,toolsandinstructionandinformationmaterialpresentedtogetherandclassifiedwiththeproductshallbeconsideredaspartoftheproductinquestionprovidedthat:

(a)theyareinvoicedtogether?and

(b)theirquantitiesareconsideredasnormalforthisproduct.

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2.Accessories,spareparts,toolsandinstructionandinformationmaterialshallbeconsideredasmaterialsoftheproductincalculatingthevalueofnon-originatingmaterialsusedinitsproduction.

ARTICLE3.10

NeutralElements

Whendeterminingwhetheraproductisanoriginatingproduct,theoriginofneutralelementsusedintheproduction,testingorinspectionoftheproductbutnotphysicallyincorporatedintotheproductbythemselves,shallnotbetakenintoaccount.Suchneutralelementsinclude,butarenotlimitedtothefollowing:

(a)fuel,energy,catalystsandsolvents?

(b)equipment,devicesandsuppliesusedfortestingorinspectingtheproducts?

(c)gloves,glasses,footwear,clothing,safetyequipmentandsupplies?

(d)tools,diesandmoulds?

(e)sparepartsandmaterialsusedinthemaintenanceofequipmentandbuildings?and

(f)lubricants,greases,compoundingmaterialsandothermaterialsusedinproductionorusedtooperateequipmentandbuildings.

ARTICLE3.11

FungibleMaterials

1.Whereoriginatingandnon-originatingfungiblematerialsareusedintheworkingorprocessingofaproduct,thedeterminationofwhetherthematerialsusedareoriginatingmaybedeterminedonthebasisofaninventorymanagementsystem.

2.Forthepurposeofparagraph1,“fungiblematerials”meansinterchangeablematerialsthatareofthesamekindandcommercialquality,whichcannotbedistinguishedfromoneanotheroncetheyareincorporatedintothefinishedproduct.

3.TheinventorymanagementsystemshallbebasedongenerallyacceptedaccountingprinciplesapplicableinthePartyinwhichtheproductismanufacturedandensurethatnomorefinalproductsreceiveoriginatingstatusthanwouldhavebeenthecaseifthematerialshadbeenphysicallysegregated.AproducerusingsuchasystemshallkeeprecordsoftheoperationofthesystemthatarenecessarytoverifycompliancewiththeprovisionsofthisChapter.

4.ForthepurposeofthisArticle,aPartymayrequireaninventorymanagementsysteminaccordancewiththelegislationofthatParty.

15

ARTICLE3.12

PrincipleofTerritoriality

TheconditionsforacquiringoriginatingstatussetoutinArticles3.2to3.10shallbefulfilledwithoutanyinterruptioninaParty.

ARTICLE3.13

DirectTransport

1.PreferentialtarifftreatmentunderthisAgreementshallonlybegrantedtooriginatingproductswhicharetransporteddirectlybetweentheParties.

2.Notwithstandingparagraph1,originatingproductswhicharetransportedthroughtheterritoriesofnon-partiesmaystillbeconsideredasbeingtransporteddirectlybetweentheParties,providedthat:

(a)theydonotundergooperationsotherthanunloading,reloading,orany

operationconfinedtopreservethemingoodcondition?and(b)theyremainundercustomscontrolinthosenon-parties.

Consignmentsoforiginatingproductsmaybesplitupinnon-partiesforfurther

transportsubjecttothefulfilmentofconditionslistedinsubparagraphs(a)and(b).

3.Forthepurposeofparagraph1,anoriginatingproductmaybetransportedbypipelineacrossterritoriesofnon-parties.

4.ThecustomsauthoritiesoftheimportingPartymayrequirethattheimporteroftheaboveproductsshallsubmitsufficientevidencetoprovetotheirsatisfactionthattheconditionssetoutinparagraphs2and3havebeenfulfilled.

SECTIONIIImplementationProcedures

ARTICLE3.14

DocumentaryEvidenceofOrigin

ToqualifyforpreferentialtarifftreatmentunderthisAgreement,eitherofthefollowingdocumentaryevidencesoforiginshallbesubmittedtothecustomsauthorityoftheimportingParty:

(a)CertificateofOriginasreferredtoinArticle3.15?or

(b)anOriginDeclarationbyanApprovedExporterasreferredtoinArticle3.16.ARTICLE3.15

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CertificateofOrigin

1.

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