Canada-Chile Free Trade Agreement

Part Three bis - Chapter K bis - Government Procurement

Annex K bis-01.1-1

Central Level Entities

Schedule of Canada:

Thresholds:

Cdn $ 84,000 - Goods covered in Annex Kbis-01.1-3
Cdn $ 84,000 - Services covered in Annex Kbis-01.1-4
Cdn $ 9,400,000 - Construction Services covered in Annex Kbis-01.1-5

1. Department of Agriculture and Agri-Food
2. Canadian Food Inspection Agency
3. Department of Canadian Heritage
4. Office of the Coordinator, Status of Women
5. Parks Canada Agency
6. Department of Citizenship and Immigration
7. Immigration and Refugee Board
8. Department of the Environment
9. Department of Foreign Affairs and International Trade
10. Canadian International Development Agency (on its own account)
11. Department of Finance
12. Canadian International Trade Tribunal
13. Municipal Development and Loan Board
14. Office of the Superintendent of Financial Institutions
15. Department of Fisheries and Oceans
(For purposes of Article Kbis-16, the national security considerations applicable to the Department of National Defence are equally applicable to the Canadian Coast Guard other than the functions of the Canadian Coast Guard retained by the Department of Transport pursuant to Order under the Public Service Rearrangement and Transfer of Duties Act published in the Canada Gazette, Part II, as SI/95-46, namely the Harbours and Ports Directorate, the regional Harbours and Ports Branches, the Marine Regulatory Directorate, the Ship Inspection Directorate and the regional Ship Inspection Branches of the Canadian Coast Guard.)
16. Department of Health
17. Medical Research Council
18. Department of Human Resources Development
19. Canada Employment Insurance Commission
20. Canada Labour Relations Board
21. Department of Indian Affairs and Northern Development
22. Department of Industry
23. National Research Council of Canada
24. Natural Sciences and Engineering Research Council of Canada
25. Social Sciences and Humanities Research Council
26. Department of Justice
27. Canadian Human Rights Commission
28. Statute Revision Commission
29. Supreme Court of Canada
30. Canada Customs and Revenue Agency
31. Department of Natural Resources
32. Canadian Nuclear Safety Commission
33. National Energy Board (on its own account)
34. Department of Public Works and Government Services (on its own account)
35. Public Service Commission
36. Department of the Solicitor General
37. Correctional Service of Canada
38. National Parole Board
39. Department of Transport
(For purposes of Article Kbis-16, the national security considerations applicable to the Department of National Defence are equally applicable to the functions of the Canadian Coast Guard retained by the Department of Transport pursuant to Order under the Public Service Rearrangement and Transfer of Duties Act published in the Canada Gazette, Part II, as SI/95-46, namely the Harbours and Ports Directorate, the regional Harbours and Ports Branches, the Marine Regulatory Directorate, the Ship Inspection Directorate and the regional Ship Inspection Branches of the Canadian Coast Guard.)
40. Treasury Board Secretariat
41. Department of Veterans Affairs
42. Department of Western Economic Diversification (on its own account)
43. Atlantic Canada Opportunities Agency (on its own account)
44. Office of the Auditor General
45. Canada Economic Development for the Regions of Quebec
46. Canadian Centre for Management Development
47. Canadian Radio-television and Telecommunications Commission (on its own account)
48. Civil Aviation Tribunal
49. Commissioner for Federal Judicial Affairs
50. Registry of the Competition Tribunal
51. Copyright Board
52. Registry of the Federal Court of Canada
53. Office of the Grain Transportation Agency Administrator (on its own account)
54. Hazardous Materials Information Review Commission
55. Offices of the Information and Privacy Commissioners of Canada
56. The National Archives of Canada
57. National Farm Products Council
58. The National Library
59. Canada Transportation Agency (on its own account)
60. Northern Pipeline Agency (on its own account)
61. Patented Medicine Prices Review Board
62. Petroleum Monitoring Agency
63. Privy Council Office
64. Canadian Intergovernmental Conference Secretariat
65. Office of the Commissioner of Official Languages
66. Public Service Staff Relations Board
67. Office of the Governor General’s Secretary
68. Office of the Chief Electoral Officer
69. Federal-Provincial Relations Office
70. Statistics Canada
71. Registry of the Tax Court of Canada
72. Canadian Centre for Occupational Health and Safety
73. Canadian Transportation Accident Investigation and Safety Board
74. Director of Soldier Settlement
75. Director, The Veterans’ Land Act
76. Fisheries Prices Support Board
77. National Battlefields Commission
78. Royal Canadian Mounted Police
79. Royal Canadian Mounted Police External Review Committee
80. Royal Canadian Mounted Police Public Complaints Commission
81. Department of National Defence

Note to Annex Kbis-01.1-1

The General Notes apply to this Annex.

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Schedule of Chile:

Thresholds:

CLP 33,599,963 - Goods covered in Annex Kbis-01.1-3
CLP 33,599,963 - Services covered in Annex Kbis-01.1-4
CLP 4,373,536,606 - Construction Services covered in Annex Kbis-01.1-5

1. Presidencia de la República
2. Ministerio de Interior
3. Ministerio de Relaciones Exteriores
4. Ministerio de Defensa Nacional
5. Ministerio de Hacienda
6. Ministerio Secretaría General de la Presidencia
7. Ministerio Secretaría General de Gobierno
8. Ministerio de Economía, Fomento, Reconstrucción y Energía
9. Ministerio de Minería
10. Ministerio de Planificación y Cooperación
11. Ministerio de Educación
12. Ministerio de Justicia
13. Ministerio de Trabajo y Previsión Social
14. Ministerio de Obras Públicas
15. Ministerio de Transporte y Telecomunicaciones
16. Ministerio de Salud
17. Ministerio de Vivienda y Urbanismo
18. Ministerio de Bienes Nacionales
19. Ministerio de Agricultura
20. Ministerio Servicio Nacional de la Mujer

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Gobiernos Regionales

Intendencia I Región
Gobernación de Arica
Gobernación de Parinacota
Gobernación de Iquique

Intendencia II Región
Gobernación de Antofagasta
Gobernación de El Loa
Gobernación de Tocopilla

Intendencia III Región
Gobernación de Chañaral
Gobernación de Copiapó

Intendencia IV Región
Gobernación de Huasco
Gobernación de El Elqui
Gobernación de Limarí
Gobernación de Choapa

Intendencia V Región
Gobernación de Petorca
Gobernación de Valparaíso
Gobernación de San Felipe de Aconcagua
Gobernación de Los Andes
Gobernación de Quillota
Gobernación de San Antonio
Gobernación de Isla de Pascua

Intendencia VI Región
Gobernación de Cachapoal
Gobernación de Colchagua
Gobernación de Cardenal Caro

Intendencia VII Región
Gobernación de Curicó
Gobernación de Talca
Gobernación de Linares
Gobernación de Cauquenes

Intendencia VIII Región
Gobernación de Ñuble
Gobernación de Bío-Bío
Gobernación de Concepción
Gobernación de Arauco

Intendencia IX Región
Gobernación de Malleco
Gobernación de Cautín

Intendencia X Región
Gobernación de Valdivia
Gobernación de Osorno
Gobernación de Llanquihue
Gobernación de Chiloé
Gobernación de Palena

Intendencia XI Región
Gobernación de Coyhaique
Gobernación de Aysén
Gobernación de General Carrera

Intendencia XII Región
Gobernación de Capitán Prat
Gobernación de Última Esperanza
Gobernación de Magallanes
Gobernación de Tierra del Fuego
Gobernación de Antártica Chilena

Intendencia Región Metropolitana
Gobernación de Chacabuco
Gobernación de Cordillera
Gobernación de Maipo
Gobernación de Talagante
Gobernación de Melipilla
Gobernación de Santiago

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Annex K bis-01.1-2
Other Covered Entities
Schedule of Canada:

Thresholds:

Cdn $ 420,000 - Goods covered in Annex Kbis-01.1-3
Cdn $ 420,000 - Services covered in Annex Kbis-01.1-4
Cdn $ 13,400,000 - Construction Services covered in Annex Kbis-01.1-5

1. Canada Post Corporation
2. National Capital Commission
3. Royal Canadian Mint
4. Via Rail Canada Inc.
5. Canadian Museum of Civilization
6. Canadian Museum of Nature
7. National Gallery of Canada
8. National Museum of Science and Technology
9. Defence Construction (1951) Ltd.
10. Canadian Tourism Commission

Notes to Annex Kbis-01.1-2

1. The General Notes apply to this Annex.
2. For greater certainty, Article Kbis-15(1) applies to procurements by Via Rail Canada Inc. and the Royal Canadian Mint, respecting the protection of the commercial confidentiality of information provided.
3. This Chapter does not apply to procurement by or on behalf of the Royal Canadian Mint of direct inputs for use in minting anything other than Canadian legal tender.

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Schedule of Chile:

Thresholds:

CLP 167,999,297 - Goods covered in Annex Kbis-01.1-3
CLP 167,999,297 - Services covered in Annex Kbis-01.1-4
CLP 5,980,244,385 - Construction Services covered in Annex Kbis-01.1-5

1. Empresa Portuaria Arica
2. Empresa Portuaria Iquique
3. Empresa Portuaria Antofagasta
4. Empresa Portuaria Coquimbo
5. Empresa Portuaria Valparaíso
6. Empresa Portuaria San Antonio
7. Empresa Portuaria San Vicente-Talcahuano
8. Empresa Portuaria Puerto Montt
9. Empresa Portuaria Chacabuco
10. Empresa Portuaria Austral
11. Aeropuertos de propiedad del Estado, dependientes de la Dirección de Aeronáutica Civil

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Annex K bis-01.1-3

Goods

Schedule of Canada:

Section A - General Provisions

1. All goods are covered subject to paragraph 2.
2. With respect to Canada, for procurement by the Department of National Defence, the Royal Canadian Mounted Police and the Canadian Coast Guard, only the goods listed in Section B are included in the coverage of this Chapter, subject to the application of Article Kbis-16(1).

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Section B - List of Certain Goods

(Numbers refer to the

22. Railway equipment
23. Motor vehicles, trailers and cycles (except buses in 2310; and, except military trucks and trailers in 2320 and 2330 and tracked combat, assault and tactical vehicles in 2350)
24. Tractors
25. Vehicular equipment components
26. Tires and tubes
29. Engine accessories
30. Mechanical power transmission equipment
32. Woodworking machinery and equipment
34. Metal working machinery
35. Service and trade equipment
36. Special industry machinery
37. Agricultural machinery and equipment
38. Construction, mining, excavating and highway maintenance equipment
39. Materials handling equipment
40. Rope, cable, chain and fittings
41. Refrigeration and air conditioning equipment
42. Fire fighting, rescue and safety equipment (except 4220: Marine lifesaving and diving equipment; and 4230: Decontaminating and impregnating equipment)
43. Pumps and compressors
44. Furnace, steam plant, drying equipment and nuclear reactors
45. Plumbing, heating and sanitation equipment
46. Water purification and sewage treatment equipment
47. Pipe, tubing, hose and fittings
48. Valves
49. Maintenance and repair shop equipment
52. Measuring tools
53. Hardware and abrasives
54. Prefabricated structures and scaffolding
55. Lumber, millwork, plywood and veneer
56. Construction and building materials
61. Electric wire and power and distribution equipment
62. Lighting fixtures and lamps
63. Alarm and signal systems
65. Medical, dental and veterinary equipment and supplies
66. Instruments and laboratory equipment (except 6615: Automatic pilot mechanisms and airborne Gyro components; and 6665: Hazard detecting instruments and apparatus)
67. Photographic equipment
68. Chemicals and chemical products
69. Training aids and devices
70. General purpose automatic data processing equipment, software, supplies and support equipment (except 7010: Automatic Data Processing Equipment (ADPE) configurations)
71. Furniture
72. Household and commercial furnishings and appliances
73. Food preparation and serving equipment
74. Office machines, text processing system and visible record equipment
75. Office supplies and devices
76. Books, maps and other publications (except 7650: drawings and specifications)
77. Musical instruments, phonographs and hometype radios
78. Recreational and athletic equipment
79. Cleaning equipment and supplies
80. Brushes, paints, sealers and adhesives
81. Containers, packaging and packing supplies
85. Toiletries
87. Agricultural supplies
88. Live animals
91. Fuels, lubricants, oils and waxes
93. Nonmetallic fabricated materials
94. Nonmetallic crude materials
96. Ores, minerals and their primary products
99. Miscellaneous

Note to Annex Kbis-01.1-3

The General Notes apply to this Annex.

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Schedule of Chile:

This Chapter applies to all goods procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2.

Annex K bis-01.1-4

Services

Schedule of Canada:
Section A - General Provisions

1. Coverage includes all services that are procured by the entities in Annex Kbis-01.1-1 and Annex Kbis-01.1-2, subject to paragraph 3 and Section B.
2. Services are identified in accordance with the
3. Annex Kbis-01.1-5 applies to contracts for construction services.

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Section B - Excluded Coverage

Services Exclusions by Major Service Category

Part 1 - Annex Kbis-01.1-1 and Annex Kbis-01.1-2

The following services are excluded for entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2:

A. Research and Development

All classes

B. Special Studies and Analysis - not R&D

B002 Animal and Fisheries Studies

B003 Grazing and Range Studies

B400 Aeronautic/Space Studies

B503 Medical and Health Studies

B507 Legal Studies (Except Advisory Services on Foreign Law)

C. Architecture and Engineering Services

C112 Airfield, Communication and Missile Facilities

C216 Marine Architect and Engineering Services

D. Information Processing and Related Telecommunications Services

D304 ADP Telecommunications and Transmission Services, except those classified as “enhanced or value-added services.” Enhanced or value added services means those telecommunications services employing computer processing applications that:

a. act on the format, content, code, protocol or similar aspects of a customer’s transmitted information;
b. provide a customer with additional, different or restructured information, or
c. involve customer interaction with stored information.

For purposes of this provision, the procurement of “ADP Telecommunications and Transmission services” does not include the ownership or furnishing of facilities for the transmission of voice or data services. This provision only extends to providers of enhanced or value-added services whose underlying telecommunications transmission facilities are leased from providers of public telecommunications transport networks.

D305 ADP Teleprocessing and Timesharing Services

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F. Natural Resources and Conservation Services

F004 Land Treatment Practices Services (plowing/clearing, etc)

F005 Range Seeding Services (ground equipment)

F006 Crop Services inc. Seed Collection/Production Services

F011 Pesticides/Insecticides Support Services (except forestry and logging)

F021 Veterinary/Animal Care Services (inc. livestock services)

F029 Other Animal Care /Control Services

F030 Fisheries Resources Management Services

F031 Fish Hatchery Services

F050 Recreation Site Maintenance Services (non-construction)

F059 Other Natural Resource and Conservation Services

G. Health and Social Services

All classes

H. Quality Control, Testing and Inspection and Technical Representative Services

Services for the departments and functions listed in Annex Kbis-01.1-6 – General Notes, Note 1 (e) to this schedule respecting FSC 36 – (Special Industry Machinery), FSC 70 – (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 - (Office machines, text processing systems and visible record equipment)

FSC 58 (Communications, Detection, and Coherent Radiation Equipment)

Services with reference to transportation equipment

J. Maintenance, Repair, Modification, Rebuilding and Installation of Equipment

FSC 58(Communications, Detection, and Coherent Radiation Equipment)

Services with reference to transportation equipment

J019 Maintenance, Repair, Modification, Rebuilding and Installation of Equipment related to Ships

J998 Non-nuclear Ship Repair

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K. Custodial Operations and Related Services

K0 Personal Care Services

K105 Guard Services

K109 Surveillance Services

K115 Preparation and Disposal of Excess and Surplus Property

L. Financial and Related Services

All classes

M. Operation of Government Owned Facilities

All facilities operated by:
The Department of National Defence
The Department of Transport
The Department of Natural Resources

and for all Departments: M180 and M140

R. Professional, Administrative and Management Support Services

R003 Legal Services (Except Advisory Services on Foreign Law)

R004 Certifications and accreditations for products and institutions other than Educational Institutions

R007 Systems Engineering Services^{Footnote 1}

R012 Patent and Trade Mark Services

R101 Expert Witness

R102 Weather Reporting/Observation Services

R104 Transcription Services

R106 Post Office Services

R109 Translation and Interpreting Services (inc. sign language)

R114 Logistics Support Services^{Footnote 2}

R116 Court Reporting Services

R117 Paper Shredding Services

R201 Civilian Personnel Recruitment (inc. Services of Employment Agencies)

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S. Utilities

All classes

T. Communications, Photographic, Mapping, Printing and Publications Services

All classes

U. Education and Training Services

U010 Certifications and accreditations for Educational Institutions

V. Transportation, Travel and Relocation Services

All classes (except V502 Hotel and similar accommodation services only and V503 Travel Agent Services (not including Tour Guides))

W. Lease or Rental of Equipment

FSC 58 (Communications, Detection, and Coherent Radiation Equipment)

Services with reference to transportation equipment

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Part 2 - Annex Kbis-01.1-2

The following services are excluded for entities listed in Annex Kbis-01.1-2 only:

D. Information Processing and Related Telecommunications Services

D309 Information and Data Broadcasting or Data Distribution Services

D316 Telecommunications Network Management Services

D317 Automated News Service, Data Services, or Other Information Services. Buying data, the electronic equivalent of books, periodicals, newspapers, etc.

D399 Other ADP and Telecommunications Services

F. Natural Resources and Conservation Services

F007 Seedling Production/Transplanting Services

F010 Other Range/Forest Improvements Services

R. Professional, Administrative and Management Support Services

R113 Data Collection Services

V. Transportation, Travel and Relocation Services

V502 Hotel and similar accommodation services only

Notes to Annex K bis-01.1-4

1. All services, with reference to those goods purchased by the Department of National Defence, the Royal Canadian Mounted Police and the Canadian Coast Guard which are not identified as subject to coverage by this Chapter (Annex Kbis-01.1-3), will be exempt from the disciplines of the Chapter.

2. All services purchased in support of military forces located overseas will be exempt from coverage by this Chapter.

3. The General Notes apply to this Annex.

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Schedule of Chile

This Chapter applies to all services procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2, except the following:

Financial Services

All classes

Annex K bis-01.1-5

Construction Services

Schedule of Canada:

Section A - General Provisions

1. Coverage includes all construction services set out in the Common Classification System, except those listed in Section B, that are procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2.

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Section B - Excluded Coverage

Services Exclusions by Major Service Category

The following services contracts are excluded:

1. Dredging
2. Construction contracts tendered by or on behalf of the Department of Transport
3. For CPC 5115 mining of oil and gas which is classified under CCS F042

Note to Annex Kbis-01.1-5

The General Notes apply to this Annex.

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Schedule of Chile:

This Chapter applies to all construction services procured by the entities listed in Annex Kbis-01.1-1 and Annex Kbis-01.1-2.

Annex K bis-01.1-6

General Notes

Schedule of Canada:

1.This Chapter does not apply to procurements in respect of:

a. shipbuilding and repair;
b. urban rail and urban transportation equipment, systems, components and materials incorporated therein as well as all project related materials of iron or steel;
c. contracts respecting FSC 58 (communications, detection and coherent radiation equipment);
d. set-asides for small and minority businesses;
e.
- i. the Department of Transport;
- ii. the Department of Fisheries and Oceans;
- iii. the Canadian Food Inspection Agency in respect of the administration and enforcement of the Fish Inspection Act;
- iv. the Department of Canadian Heritage in respect of those functions that were formerly the responsibility of the Department of Communications;
- v. the Department of Industry in respect of telecommunications, except in relation to (a) the planning and coordination of telecommunication services for departments, boards and agencies of the Government of Canada, and (b) broadcasting, other than in relation to spectrum management and the technical aspects of broadcasting; and
- vi. the Department of Public Works and Government Services in respect of the Government Telecommunications Agency;
respecting Federal Supply Classification (FSC) 70 - (automatic data processing equipment, software supplies and support equipment), FSC 74 - (office machines, text processing systems and visible record equipment) and FSC 36 - (special industry machinery);
f. and agricultural products made in furtherance of agricultural support programs or human feeding programs.

2. This Chapter does not apply to the procurement of transportation services that form a part of, or are incidental to, a procurement contract.

3. Pursuant to Article Kbis-16, national security exceptions include oil purchases related to any strategic reserve requirements.

4. National security exceptions include procurements made in support of safeguarding nuclear materials or technology.

5. The procurement process is the process that begins after an entity has decided on its requirement and continues through to and including contract award.

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Schedule of Chile:

This Chapter does not apply to procurements in respect of financial services.

Annex K bis-01.1-7

Threshold Adjustment Formulas

1. The thresholds referred to in Annexes Kbis-01.1-1, Kbis-01.1-2 and Kbis-01.1-8, except the threshold for construction services in Annex Kbis-01.1-1, shall be adjusted in accordance with Annex 1001.1c of the North American Free Trade Agreement.

2. The threshold for construction services in Annex Kbis-01.1-1 shall be adjusted;

a. for Canada, in accordance with the formula in the World Trade Organization Agreement on Government Procurement, GPA/1, Annex 3; and
b. for Chile, in accordance with the formula in Chapter 9, Section G, paragraph 3 of the U.S.-Chile Free Trade Agreement.

3. The Parties agree that the thresholds shall be fixed for two calendar years and the first threshold adjustment will take place effective 1 January, 2008.

4. Where a major change in a national currency of either Party during a year were to create a significant problem with regard to the application of the Chapter, the Parties shall consult as to whether an interim adjustment is appropriate.

5. In the event that:

a. Canada withdraws from the North American Free Trade Agreement pursuant to Article 2205 of that Agreement, or the World Trade Organization Agreement on Government Procurement pursuant to Article XXIV of that Agreement; or
b. Chile withdraws from the U.S.-Chile Free Trade Agreement pursuant to Article 24.4 of that Agreement; or
c. the North American Free Trade Agreement, or the World Trade Organization Agreement on Government Procurement, or the U.S.-Chile Free Trade Agreement are terminated; or
d. a threshold adjustment formula referenced in paragraphs 1 or 2 is altered;

6. The Committee shall recommend to the Commission any modification of, or addition to Annex Kbis-01.1-7.

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Annex K bis-01.1-8

Extended Transparency Commitments

The provisions of Article Kbis-03; Article Kbis-04; the first sentence of Article Kbis-05(1); Article Kbis-06(1) and (3); Article Kbis-08(1), (2)(b), and (5); Article Kbis-10(1) and (2); Article Kbis-15 and Article Kbis-16 apply where:

1. the entity uses an open tendering process; and
2. the procurement is for goods, services and construction services in excess of CDN $124,000 for Canada and CLP 54,902,025 for Chile, for entities listed in Annex Kbis-01.1-1 and is otherwise excluded by Annexes Kbis-01.1-3 (Goods), Kbis-01.1-4 (Services), and Kbis-01.1-5 (Construction Services).

Date modified:: 2016-12-05

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