Whereas free and fair trade is good, be it enacted as follows:
- In this resolution,
- general customs area refers to an area in which customs authority is exercised by a nation or nations with a common external trade policy without substantial internal trade barriers;
- customs area refers to a general customs area entirely subject to World Assembly law;
- resolution means extant WA resolution;
- member means WA member; and
- trade area means an area created by bilateral or multilateral treaty between customs areas in which they accord to each other special trade preferences.
- Each customs area must accord to every other customs area a most-favoured trade preference, unless such preferences are:
- necessary for establishment of a particular industry or economic development in a nation with low standards of living,
- extended only to co-members of a trade area or customs area, or
- permitted by this resolution.
- The value ascribed to imported goods shall be based on the value of the goods imported, or of like goods, if they were sold in normal trade under competitive conditions in normal quantities. If such information is not available, members must make a best guess of that value on available information.
- Customs areas may not enforce quantitative restrictions, ie quotas, on imports from or exports to any other customs area, unless:
- export restrictions are temporary and in proportion to the need to relieve a serious ongoing or upcoming shortage of food or vital goods,
- needed restrictions are imposed for the purpose of evaluating or enforcing compliance with regulations not discriminating on origin also applying to like domestic goods,
- import restrictions are needed to safeguard the health or safety of domestic agriculture or to remove a temporary domestic surplus of a like good, or
- such restrictions are to protect national treasures of substantial cultural value, conserve exhaustible natural resources, or comply with resolutions.
- Unless a quota is imposed, no member may require an import licence for goods from another member. Quotas on a good, when allocated, may not discriminate against supplying member nations, unless otherwise agreed to by the quota imposer and the major supplying member nations. All import licences shall be publicly available.
- When a good is imported into a customs area at a price lower than normal market prices of like goods (ie dumping), the area may impose a tariff in the amount necessary to adjust the imported good’s price to a normal market price, after showing to the Wacc the occurrence of dumping, likely material damages to internal industry, and that the former clearly causes or will cause the latter.
- After a good enters a customs area lawfully, no internal regulations or tax may be applied in a manner which discriminates against the origin of that good relative to other like goods.
- Members shall ascribe the origination of a good to the general customs area in which the good was last substantially transformed, excluding operations carried out for transport, preservation, storage, marketability, simple assembly, or mixture.
- Members may require origination marks on imported goods, so long as such marks do not reduce the value or increase the cost of such goods materially. Customs areas may not assess penalties for failure to make such marks prior their import.
- This resolution notwithstanding, members may make trade restrictions:
- to forestall a balance of payments crisis provided that members maintain such restrictions only to the extent necessary to defend their balance of payments and speedily recover their financial position,
- on arms, ammunition, or other materials used in military procurement directly or indirectly,
- in time of war or, subject to resolution, for protection of vital security interests,
- if required by resolution to enforce trade sanctions against a nation not compliant with WA law,
- exercising powers granted or enforcing restrictions required by prior resolution, or
- exercising regulatory powers granted by resolution over a specific good or well-defined class of goods which bear substantially similar properties that are unrelated to their marketability or use.
- This resolution does not cover intellectual property or transfers of hard currency. Any tariff or quota imposed must first be posted publicly, specifying the goods covered with the quantities restricted or tax assessed. Penalties ascribed for a customs offence must be in proportion to the offence's harm. Declarations on issues arising from this resolution may be requested from the Wacc; no penalty for non-compliant activities taken with good faith reliance on such declarations may be imposed; the Independent Adjudicative Office may rescind such declarations.
