Common use of DIGITAL PRODUCTS Clause in Contracts

DIGITAL PRODUCTS. 1. A Party shall not apply customs duties or other duties, fees or charges on or in connection with the importation or exportation of digital products by electronic transmission10-3. 10-1 This applies to WTO rules for which both parties are signatories. 10-2 For greater clarity, digital products do not include digitized representations of financial instruments. 10-3 The obligation in paragraph 1 does not preclude a Party from imposing internal taxes or other internal charges provided that these are imposed in a manner consistent with Article III of GATT 1994 and its interpretative notes as incorporated into this Agreement by Article 2.2. 2. Each Party shall determine the customs value of imported carrier media bearing digital products according to the cost or value of the carrier medium alone, without regard to the cost or value of the digital products stored on the carrier medium. (a) Each Party shall accord to the digital products of the other Party10-4 treatment no less favourable than it accords to its own like digital products10-5 in respect of all measures10-6 affecting the contracting for, commissioning, creation, publication, production, storage, distribution, marketing, sale, purchase, delivery or use of such digital products. (b) A Party shall accord treatment no less favourable to digital products whose author, performer, producer, developer or distributor is a person of the other Party than it accords to like digital products whose author, performer, producer, developer or distributor is a person of the first Party. 4 A Party shall not accord treatment less favourable to some digital products on the basis of factors not found in paragraph 3, which have the effect of affording protection to its own digital products and/or which act as a disguised restriction to trade in digital products of the other Party.