PART TWO
TRADE IN GOODS



Chapter Three
National Treatment and Market Access for Goods
•Section A - National Treatment •Section B - Tariffs •Section C -
Non-Tariff Measures •Section D - Consultations



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Article 300: Scope and Coverage

This Chapter applies to trade in goods of a Party, including:
(a) goods covered by Annex 300-A (Trade and Investment in the Automotive
Sector),
(b) goods covered by Annex 300-B (Textile and Apparel Goods), and

(c) goods covered by another Chapter in this Part,



except as provided in such Annex or Chapter.




Section A - National Treatment

Article 301: National Treatment

1. Each Party shall accord national treatment to the goods of another
Party in accordance with Article III of the General Agreement on Tariffs
and Trade (GATT), including its interpretative notes, and to this end
Article III of the GATT and its interpretative notes, or any equivalent
provision of a successor agreement to which all Parties are party, are
incorporated into and made part of this Agreement.

2. The provisions of paragraph 1 regarding national treatment shall
mean, with respect to a state or province, treatment no less favorable
than the most favorable treatment accorded by such state or province to
any like, directly competitive or substitutable goods, as the case may
be, of the Party of which it forms a part.

3. Paragraphs 1 and 2 do not apply to the measures set out in Annex
301.3.




Section B - Tariffs

Article 302: Tariff Elimination

1. Except as otherwise provided in this Agreement, no Party may increase
any existing customs duty, or adopt any customs duty, on an originating
good.

2. Except as otherwise provided in this Agreement, each Party shall
progressively eliminate its customs duties on originating goods in
accordance with its Schedule to Annex 302.2.

3. On the request of any Party, the Parties shall consult to consider
accelerating the elimination of customs duties set out in their
Schedules. An agreement between two or more Parties to accelerate the
elimination of a customs duty on a good shall supersede any duty rate or
staging category determined pursuant to their Schedules for such good
when approved by each such Party in accordance with its applicable legal
procedures.

4. Each Party may adopt or maintain import measures to allocate in-quota
imports made pursuant to a tariff rate quota set out in Annex 302.2,
provided that such measures do not have trade restrictive effects on
imports additional to those caused by the imposition of the tariff rate
quota.

5. On written request of any Party, a Party applying or intending to
apply measures pursuant to paragraph 4 shall consult to review the
administration of those measures.


Article 303: Restriction on Drawback and Duty Deferral Programs

1. Except as otherwise provided in this Article, no Party may refund the
amount of customs duties paid, or waive or reduce the amount of customs
duties owed, on a good imported into its territory, on condition that
the good is:
(a) subsequently exported to the territory of another Party,
(b) used as a material in the production of another good that is
subsequently exported to the territory of another Party, or

(c) substituted by an identical or similar good used as a material in
the production of another good that is subsequently exported to the
territory of another Party,

in an amount that exceeds the lesser of the total amount of customs
duties paid or owed on the good on importation into its territory and
the total amount of customs duties paid to another Party on the good
that has been subsequently exported to the territory of that other
Party.



2. No Party may, on condition of export, refund, waive or reduce:
(a) an antidumping or countervailing duty that is applied pursuant to a
Party's domestic law and that is not applied inconsistently with Chapter
Nineteen (Review and Dispute Settlement in Antidumping and
Countervailing Duty Matters)
(b) a 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;

(c) a fee applied pursuant to section 22 of the U.S. Agricultural
Adjustment Act, subject to Chapter Seven (Agriculture and Sanitary and
Phytosanitary Measures) ; or

(d) customs duties paid or owed on a good imported