Common use of General Exceptions under Chapter Clause in Contracts

General Exceptions under Chapter. 7 1. Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination against the other Party, or a disguised restriction on trade in services between the Parties, nothing in this Chapter shall be construed to prevent the adoption or enforcement by either Party of measures: (a) necessary to protect public morals or to maintain public order;(Note) Note: The public order exception may be invoked only where a genuine and sufficiently serious threat is posed to one of the fundamental interests of society. (b) necessary to protect human, animal or plant life or health; (c) necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Chapter including those relating to: (i) the prevention of deceptive and fraudulent practices or to deal with the effects of a default on services contracts; (ii) the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts; (iii) safety; (d) inconsistent with Article 60, provided that the difference in treatment is aimed at ensuring the equitable or effective(Note) imposition or collection of direct taxes in respect of services or service suppliers of the other Party. Note: Measures that are aimed at ensuring the equitable or effective imposition or collection of direct taxes include measures taken by a Party under its taxation system which: (i) apply to non-resident service suppliers in recognition of the fact that the tax obligation of non-residents is determined with respect to taxable items sourced or located in the Party’s territory; (ii) apply to non-residents in order to ensure the imposition or collection of taxes in the Party’s territory; (iii) apply to non-residents or residents in order to prevent the avoidance or evasion of taxes, including compliance measures; (iv) apply to consumers of services supplied in or from the territory of the other Party in order to ensure the imposition or collection of taxes on such consumers derived from sources in the Party’s territory; (v) distinguish service suppliers subject to tax on worldwide taxable items from other service suppliers, in recognition of the difference in the nature of the tax base between them; or (vi) determine, allocate or apportion income, profit, gain, loss, deduction or credit of resident persons or branches, or between related persons or branches of the same person, in order to safeguard the Party’s tax base. Tax terms or concepts in sub-paragraph (d) of paragraph 1 of Article 69 and in this note are determined according to tax definitions and concepts, or equivalent or similar definitions and concepts, under the domestic law of the Party taking the measure. 2. In the application of paragraph 1 above, the relevant interpretations and operation of the WTO Agreement shall, where appropriate, be taken into account.

General Exceptions under Chapter. 7 1. Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination against the other Party, or a disguised restriction on trade in services between the Parties, nothing in this Chapter shall be construed to prevent the adoption or enforcement by either Party of measures: (a) necessary to protect public morals or to maintain public order;(Noteorder; (Note) Note: The public order exception may be invoked only where a genuine and sufficiently serious threat is posed to one of the fundamental interests of society. (b) necessary to protect human, animal or plant life or health; (c) necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Chapter including those relating to: (i) the prevention of deceptive and fraudulent practices or to deal with the effects of a default on services contracts; (ii) the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts; (iii) safety; (d) inconsistent with Article 60, provided that the difference in treatment is aimed at ensuring the equitable or effective(Noteeffective (Note) imposition or collection of direct taxes in respect of services or service suppliers of the other Party. Note: Measures that are aimed at ensuring the equitable or effective imposition or collection of direct taxes include measures taken by a Party under its taxation system which: (i) apply to non-resident service suppliers in recognition of the fact that the tax obligation of non-residents is determined with respect to taxable items sourced or located in the Party’s 's territory; (ii) apply to non-residents in order to ensure the imposition or collection of taxes in the Party’s 's territory; (iii) apply to non-residents or residents in order to prevent the avoidance or evasion of taxes, including compliance measures; (iv) apply to consumers of services supplied in or from the territory of the other Party in order to ensure the imposition or collection of taxes on such consumers derived from sources in the Party’s 's territory; (v) distinguish service suppliers subject to tax on worldwide taxable items from other service suppliers, in recognition of the difference in the nature of the tax base between them; or (vi) determine, allocate or apportion income, profit, gain, loss, deduction or credit of resident persons or branches, or between related persons or branches of the same person, in order to t o safeguard the Party’s 's tax base. Tax terms or concepts in sub-paragraph (d) of paragraph 1 of Article 69 and in this note are determined according to tax definitions and concepts, or equivalent or similar definitions and concepts, under the domestic law of the Party taking the measure. 2. In the application of paragraph 1 above, the relevant interpretations and operation of the WTO Agreement shall, where appropriate, be taken into account.

General Exceptions under Chapter. 7 1. Subject to the requirement that such measures are not applied notapplied in a manner which would constitute a means of arbitrary ofarbitrary or unjustifiable discrimination against the other PartyotherParty, or a disguised restriction on trade in services between servicesbetween the Parties, nothing in this Chapter shall be construed beconstrued to prevent the adoption or enforcement by either Party eitherParty of measures: : (a) necessary to protect public morals or to maintain public maintainpublic order;(Note) Note: The public order exception may be invoked only where a wherea genuine and sufficiently serious threat is posed to posedto one of the fundamental interests of society. . (b) necessary to protect human, animal or plant life or lifeor health; ; (c) necessary to secure compliance with laws or regulations orregulations which are not inconsistent with the provisions theprovisions of this Chapter including those relating thoserelating to: : (i) the prevention of deceptive and fraudulent practices fraudulentpractices or to deal with the effects of a default adefault on services contracts; ; (ii) the protection of the privacy of individuals in individualsin relation to the processing and dissemination anddissemination of personal data and the protection theprotection of confidentiality of individual records individualrecords and accounts; ; (iii) safety; ; (d) inconsistent with Article 60, provided that the difference thedifference in treatment is aimed at ensuring the equitable theequitable or effective(Note) imposition or collection orcollection of direct taxes in respect of services or servicesor service suppliers of the other Party. Note: Measures that are aimed at ensuring the equitable or effective oreffective imposition or collection of direct taxes include taxesinclude measures taken by a Party under its taxation system taxationsystem which: : (i) apply to non-resident service suppliers in recognition inrecognition of the fact that the tax obligation of obligationof non-residents is determined with respect to taxable totaxable items sourced or located in the Party’s territory; Party'sterritory; (ii) apply to non-residents in order to ensure the imposition theimposition or collection of taxes in the Party’s theParty's territory; ; (iii) apply to non-residents or residents in order to prevent toprevent the avoidance or evasion of taxes, ,including compliance measures; ; (iv) apply to consumers of services supplied in or from orfrom the territory of the other Party in order to orderto ensure the imposition or collection of taxes on taxeson such consumers derived from sources in the Party’s 's territory; ; (v) distinguish service suppliers subject to tax on worldwide onworldwide taxable items from other service suppliers, in recognition of the difference in the inthe nature of the tax base between them; or or (vi) determine, allocate or apportion income, profit, ,gain, loss, deduction or credit of resident persons residentpersons or branches, or between related persons or personsor branches of the same person, in order to safeguard tosafeguard the Party’s 's tax base. Tax terms or concepts in sub-sub- paragraph (d) of paragraph ofparagraph 1 of Article 69 and in this note are determined aredetermined according to tax definitions and concepts, ,or equivalent or similar definitions and concepts, ,under the domestic law of the Party taking the measure. themeasure. 2. In the application of paragraph 1 above, the relevant interpretations relevantinterpretations and operation of the WTO Agreement shall, ,where appropriate, be taken into account.