Article 318. Definitions

    For purposes of this Chapter:

    Advertising films means recorded visual media, with or without soundtracks, consisting essentially of images showing the nature or operation of goods or services offered for sale or lease by a person established or resident in the territory of any Party, provided that the films are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public, and provided that they are imported in packets that each contain no more than one copy of each film and that do not form part of a larger consignment;

    Commercial samples of negligible value means commercial samples having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount in the currency of another Party, or so marked, torn, perforated or otherwise treated that they are unsuitable for sale or for use except as commercial samples;

    Consumed means:

  • Actually consumed; or
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  • Further processed or manufactured so as to result in a substantial change in value, form or use of the good or in the production of another good;
  • 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:

  • Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT, or any equivalent provision of a successor agreement to which all Parties are party, in respect of like, directly competitive or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
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  • Antidumping or countervailing duty that is applied pursuant to a Party's domestic law and not applied inconsistently with Chapter Nineteen (Review and Dispute Settlement in Antidumping and Countervailing Duty Matters);
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  • Fee or other charge in connection with importation commensurate with the cost of services rendered;
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  • Premium offered or collected on an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions, tariff rate quotas or tariff preference levels; and
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  • Fee applied pursuant to section 22 of the U.S. Agricultural Adjustment Act, subject to Chapter Seven (Agriculture and Sanitary and Phytosanitary Measures);
  • Distilled spirits include distilled spirits and distilled spirit­containing beverages;

    Duty deferral program includes measures such as those governing foreign trade zones, temporary importations under bond, bonded warehouses, "maquiladoras", and inward processing programs;

    Duty-free means free of customs duty;

    Goods imported for sports purposes means sports requisites for use in sports contests, demonstrations or training in the territory of the Party into whose territory such goods are imported;

    Goods intended for display or demonstration includes their component parts, ancillary apparatus and accessories;

    Item means a tariff classification item at the eight- or 10-digit level set out in a Party's tariff schedule;

    Local area network apparatus means a good dedicated for use solely or principally to permit the interconnection of automatic data processing machines and units thereof for a network that is used primarily for the sharing of resources such as central processor units, data storage devices and input or output units, including in-line repeaters, converters, concentrators, bridges and routers, and printed circuit assemblies for physical incorporation into automatic data processing machines and units thereof suitable for use solely or principally with a private network, and providing for the transmission, receipt, error-checking, control, signal conversion or correction functions for non-voice data to move through a local area network;

    Performance requirement means a requirement that:

  • A given level or percentage of goods or services be exported;
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  • Domestic goods or services of the Party granting a waiver of customs duties be substituted for imported goods or services;
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  • A person benefitting from a waiver of customs duties purchase other goods or services in the territory of the Party granting the waiver or accord a preference to domestically produced goods or services;
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  • A person benefitting from a waiver of customs duties produce goods or provide services, in the territory of the Party granting the waiver, with a given level or percentage of domestic content; or
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  • Relates in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows;
  • Printed advertising materials means those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials and posters, that are used to promote, publicize or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge;

    Repair or alteration does not include an operation or process that either destroys the essential characteristics of a good or creates a new or commercially different good;

    Satisfactory evidence means:

  • A receipt, or a copy of a receipt, evidencing payment of customs duties on a particular entry;
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  • A copy of the entry document with evidence that it was received by a customs administration;
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  • A copy of a final customs duty determination by a customs administration respecting the relevant entry;
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  • Any other evidence of payment of customs duties acceptable under the Uniform Regulations established in accordance with Chapter Five (Customs Procedures);
  • Total export shipments means all shipments from total supply to users located in the territory of another Party;

    Total supply means all shipments, whether intended for domestic or foreign users, from:

  • Domestic production;
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  • Domestic inventory; and
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  • Other imports as appropriate; and
  • Waiver of customs duties means a measure that waives otherwise applicable customs duties on any good imported from any country, including the territory of another Party.