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Korea Record Of Understanding On Telecommunications--2/15/90
SUMMARY RECORD OF UNDERSTANDING UNITED STATES-REPUBLIC OF KOREA TELECOMMUNICATIONS CONSULTATIONS (FEBRUARY 15, 1990)
The United States and Korean governments affirm that the attached documents, enumerated below, serve as a record of deliberations on market access for telecommunications services and equipment between the two governments. The purpose is to assure mutually advantageous market opportunities in both markets.
1. Understanding Between the United States and the Republic of Korea on Liberalization of Telecommunications Services
2. Understanding Between the United States and the Republic of Korea on Government Procurement
3. Understanding Between the United States and the Republic of Korea on Telecommunications Standards
4. Understanding Between the United States and the Republic of Korea on Telecommunications Equipment Tariff Reductions
UNDERSTANDING BETWEEN THE UNITED STATES AND THE REPUBLIC OF KOREA
ON LIBERALIZATION OF TELECOMMUNICATIONS SERVICES
February 15, 1990
The Korean government confirms that the following principles will apply by the date indicated to services permitted under existing law and will apply to any additional services liberalized hereafter:
1. No forced interconnection with public networks (July 1, 1990)
2. No prohibition against connection to public, switched networks for dial-up access in connection with services permissible under existing law (July 1, 1990)
3. Guaranteed right to use proprietary protocols (July 1, 1990)
4. Removal of registration requirements for simple database and data-processing services (July 1, 1990)
5. No common-carrier-like obligations (July 1, 1990), for example:
No requirement to serve a particular customer;
No requirement to interconnect with another network
6. No requirement for any ownership or business relationship for shared use of [domestic] leased lines (July 1, 1990) (and of international leased lines (July 1, 1991)]
7. Allowance of shared use of [domestic) leased lines (July 1, 1990) [and of international leased lines (July l, 1991)] for uses other than telecommunications business upon notification to the Ministry of business upon notifications to the Ministry of Communications (MOC).
II. IMMEDIATE COMMITMENTS:
The Korean government commits to undertake the following immediate additional liberalization measures under existing administrative discretion.
Removal of investment/management control restrictions for simple data base and data processing, as of July 1, 1990
[all services permissible under the July 1989 measures] [and for any additional service liberalized under existing law].
[Commitment to allow international (cross-border) services by January 1, 1992, with no requirement to process information in Korea.]
Allowance by July 1, 1990, of attachment or packet switches or use in providing packet switching which includes, for example, EDI, message handling services, code and protocol processing, or electronic mail.
The requirement for MOC approval or multiplexers with capacities higher than 64 Kbps should be removed by July 1, 1990. [Attachment or multiplexers with a capacity or more than 2.048 Mbps should be permitted or use in provision of services permissible under July 1989 measures and additional services allowed under existing law.]
1) The Director of the Data Communications Division of the Ministry of Communications as the single contact point in the MOC for information regarding applications to provide new services; and
2) criteria for granting an application for a new service.
III. FUTURE CONSULTATIONS:
Both governments agree to the following framework for future consultations on telecommunications liberalization:
Both governments support the Uruguay Round and intend to play a positive, constructive role in establishing a world framework for liberal telecommunications trade in services.
Both governments agree to resume bilateral discussions if coverage of telecommunications services in the Uruguay Round is insufficient or if an agreement on telecommunications services is not reached in the Uruguay Round by the end of 1990.
Both governments agree to meet to discuss telecommunications services issues of interest to either party for one additional year. At the end of that time, both parties will assess the need to continue bilateral discussions.
BETWEEN THE UNITED STATES AND THE REPUBLIC OF KOREA
ON GOVERNMENT PROCUREMENT
February 15, 1990
The Republic of Korea and the United States agree on the following provisions. Agreement on these provisions constitutes substantial progress toward liberalization of Korea's government procurement market for telecommunications.
I. Principles concerning Korean Telecommunications Procurement
If agreement is reached on coverage, procedures, timing, the relationship between this agreement and the GATT Government Procurement Code, and definitions, Korea and the United States agree to the following principles on the basis of reciprocity:
A. Korea will be implementing non-discriminatory procurement procedures to provide U.S. products, incidental services, and suppliers an equal opportunity to compete for Korean telecommunications contracts for goods and incidental services. Telecommunications contracts for goods and incidental services shall be awarded without giving preference to domestic suppliers, goods or incidental services.
This means that for telecommunications contracts for goods and incidental services Korea will no longer consider whether an identified procurement need may be satisfied by a domestic source before opening the procurement to foreign competition. As soon as a need is identified and a decision is made to procure, U.S. and Korean suppliers, goods, and incidental services will be treated the same regardless of the origin of the supplier, product, and incidental service. Any information given to one supplier must be given at the same time to all suppliers participating in the tendering process, including the procurement planning process and the adoption process.
B. In the qualification of potential suppliers, products or incidental services, evaluation of bids, and award of contracts, covered Korean entities and their personnel shall not, either explicitly or implicitly, impose, seek or consider offsets, including localization, local content, licensing of technology, technology transfer, investment requirements, or similar conditions.
C. Korea will. be establishing procedures for the hearing and reviewing of complaints arising in connection with any phase of the telecommunications procurement process, so as to ensure that, to the greatest extent possible, disputes will. be equitably and expeditiously resolved between the suppliers and the entities concerned. These procedures will include all the provisions listed under the "Complaint Procedures" to section in the U.S. proposed procurement annex of September 9, 1989 (Attachment B).
D. Both Governments agree to meet periodically and upon request to review the operation of this agreement.
Contracts awarded by the Korean office of Supply (OSROK) , the Ministry of Communications (MOC), and the Korean Telecommunications Authority (KTA) for telecommunications goods (including but not limited to commodity products and network equipment), incidental services, and software contracts to the extent software contracts are covered by the GATT Government Procurement Code.
ROKG officials will use the GATT Government Procurement Code procedures for OSROK and MOC contracts, as well as for general commodity contracts and incidental services contracts awarded by KTA.
For KTA network equipment contracts, ROKG officials will use the Procurement Procedures for Telecommunications Network Equipment (Attachment A) and will. also fully observe the other requirements of the Code.
Subject to change upon full ROKG accession to the GATT Government Procurement Code and upon the Codes expansion to telecommunications procurement, this agreement will be implemented by January 1, 1992, except for KTA network equipment for which the implementation date will be by January 1, 1993.
V. Relationship Between ROKG GATT Code Application and This Agreement
The ROKG will ensure that by January 1, 1992, before Korea formally joins tho Code, KTA's procurement of commodity products will follow the principles embodied in the Code.
The ROKG agrees to attempt to complete successfully, on a developed country basis for telecommunications contracts covered by this understanding, its Code accession negotiations by January 1, 1991. The ROKG agrees to include in its upcoming Code coverage offer list all Korean telecommunications contracts (i.e., goods, incidental services, and software to the extent software is covered by the GATT Government Procurement Code), including all telecommunications contracts for goods and incidental services awarded by MOC, OSROK, and KTA. Irrespective of any future multilateral decision concerning the terms of Code accession for new members (referred to as progressive or transitional membership), the ROKG will include in its offer immediate and complete coverage upon code accession of OSROK, MOC, and KTA for the contracts mentioned above.
If ROKG Code accession negotiations and the Code negotiations to expand the Code to cover telecommunications goods and incidental services contracts are successful, the provisions of the expanded Code agreement will apply to the ROKG contracts and entities referred to above on the implementation date established by the Code negotiations in lieu of the government procurement provisions of this U.S. - ROKG telecommunications agreement.
In the event the ROKG's accession negotiations to the Code or the Code negotiations have not been completed by January 1, 1991, the ROKG agrees to implement the procurement provisions of this agreement on the date agreed to in Section IV (Timing) above.
In this case, U.S. and ROKG officials agree to meet during the first two months of 1991 to discuss and complete any provisions of this agreement not yet precisely defined.
A. Commodity Products are all goods including, for example office supplies and equipment, network installation and maintenance equipment, research and development equipment, test and measuring equipment, training equipment, terminal equipment (except public phones), but not network equipment.
B. Network Equipment includes central office switches, transmission equipment, radio equipment, and cable.
ATTACHMENT A TO ATTACHMENT 2
PROCUREMENT PROCEDURES FOR TELECOMMUNICATIONS NETWORK EQUIPMENT
A. Public Notice
(1) When a contracting entity determines that there is a need to procure telecommunications network equipment, it shall use these procedures and will make its intent to purchase known through public notice.
(2) Such notice will constitute invitations to participate in each procedure.
(3) The public notice will be published in the Korean official gazette, and will also be sent to prospective suppliers identified to be interested in and/or capable of producing the products required or envisaged.
(4) Suppliers responding to the notice published in the official gazette will be treated in a manner no less favorable than those responding to the Notices sent individually.
(5) Depending on the types of procurement, the timing of procurement notice will vary.
First, the "notice of request for proposals (RFP/notice)" for "initial procurement of new products" and "the notice of invitation for participation (Invitation/notice)" for "procurement by development of new products" will be published in the official gazette for every procurement.
Second, notice of the "follow-up procurement" will be published in the official gazette on an annual basis with possible additional notices in the official gazette as necessary.
(6) The RFP/notice and Invitation/notice will include the following information:
- Nature and quantity of the product to be supplied;
- Notice that the purchase will be made through procedures of "initial procurement of new products" and/or "procurement by development of new products"
- Any delivery date;
- The addresses and deadline for submitting an application, and the language in which it must be submitted;
- Any information necessary for obtaining procurement documentation and other documents;
- Any economic and technical requirement, financial guarantees and information required from suppliers;
- Written notice that suppliers who qualify under the above procedures will be considered as qualified suppliers for follow-up procurement;
- The amount and terms of payment of any sum payable for the procurement documentation;
- The fact that one winning application will be selected or, in the case that more than one supplier is necessary to assure stable supply, the proposed number of suppliers to be selected.
(7) A notice of "follow-up procurement" shall constitute an invitation to participate and will contain the following information:
- Type, category and quantity of the product to be procured (based on the annual projection of purchasing plans);
- Any delivery date;
- The address and deadline for submitting applications, and the language in which it must be submitted;
- The designated contact point.
In addition, the following information will be included in the "f ollow-up procurement" notice:
- Amount of products by categories procured actually in a previous fiscal year;
- Technical information, including a general description of products;
- Any information necessary for obtaining specifications and other documents;
- The amount and terms of payment of any sum payable for the procurement documentation;
- The fact that the winning proposal will be selected from suppliers which have completed the qualification process;
- The fact that one winning proposal will be selected, or, in the case that more than one supplier is necessary to assure stable supply, the proposed number of suppliers to be selected;
Such information shall also be published in the above notice, or reference will be made in that notice that such information will be published in the procurement guidebook.
(8) In addition, an English summary of RFP/notice and Invitation/notice will be published in the official gazette and will include the following information:
- Subject matter of the procurement;
- Time limitation for submission of an application;
- Addresses from which necessary documents and further information may be requested.
(9) Any suppliers responding to the procurement notice will be provided with procurement documentation on a timely basis.
(10) The procurement documentation will contain all information necessary to permit suppliers to submit responsive applications including:
- The address to which applications should be sent;
- The addresses where requests for supplementary information should be sent;
- The closing date for receipt of applications;
- Any economic and technical requirements, financial guarantees and information required from suppliers;
- A complete description of the products required or of any requirements including technical specifications, conformity certification to be fulfilled by the products, necessary plans, drawings, and instructional materials;
- The criteria for the selection and award of the contracts to the successful applicant(s), including any factors other than price, such as compatibility, quality control, and stable supply, that are to be considered in the evaluation of applications and the cost element to be included in evaluating applications prices;
- The terms of payment;
- In cases of purchases where more than one supplier is to be selected, the factors to be utilized in the allocation of the total procurement among the selected suppliers including the intended minimum lot for orders to be placed;
- Any other terms or conditions.
(11) A contracting entity will respond promptly to any reasonable request for clarification of the RFP or of the procurement documentation.
(12) Any clarification or amendment of the RFP or documentation shall be provided simultaneously to all interested suppliers in adequate time for such suppliers to consider this information and respond to it.
(13) The period for receipt of applications will in no case be less than forty days from the date of procurement notice.
The application period may be reduced in the case of an emergency duly substantiated by the entity, but, in any case, would not be less than ten days.
D. Selection and Award of Contract(s) of Successful Applicants
(I). SELECTION OF SUCCESSFUL APPLICANTS THROUGH THE "INITIAL PROCUREMENT OF NEW PRODUCTS" AND PROCUREMENT BY DEVELOPMENT OF NEW PRODUCT PROCEDURES.
Selection and award of contracts will be accomplished as follows:
(14) In order to be considered for selection, any application must:
- conform to the essential requirements of procurement notice and procurement documentation; and
- be from suppliers which comply with the conditions for participation.
(15) Applications will be evaluated in terms of the selection criteria set forth in the procurement documentation.
(16) The applicant determined to be the most advantageous in terms of the selection criteria shall be selected and be awarded the contract(s).
(17) If it appears that no application, or applications as the case may be, is obviously the most advantageous in terms of the selection criteria listed in the procurement documentation, a contracting entity will, in subsequent negotiations, give equal consideration and treatment to all suppliers within the competitive range.
(18) Those suppliers successfully selected through these procedures will be considered as qualified suppliers for the follow-up procurement; and this fact will be specified in the procurement notice.
QUALIFICATION AND SELECTION IN THE FOLLOW-UP
(19) A contracting entity will establish and maintain lists of qualified suppliers.
(20) Upon receiving an application from any supplier at any time, a contracting entity will promptly initiate the qualification/selection process, and will give equal treatment to both foreign and domestic applicants in the process of qualifying/selecting suppliers.
(21) If, after publication of the procurement notice, a supplier not yet qualified requests to participate, the contracting entity will start the qualification/selection procedure without delay.
(22) Suppliers requesting to participate in procurement opportunities shall be permitted to submit proposals, and their proposals shall be considered, provided, in the case of those not yet qualified, there is sufficient time to complete the qualification procedure for a particular procurement.
(23) If the applicant, though not finally selected as a successful supplier in a previous application, had already undergone part of the qualification procedure, the applicant will be exempted from all or part of the relevant screening procedure.
(24) The number of suppliers permitted to participate shall be limited only by the efficient operation of the procurement system and only when such limitations are not made in a discriminatory manner.
E. INFORMATION ON PURCHASE AND PROCUREMENT PROCEDURE
(25) In connection with the "follow-up procurement" procedures, a contracting entity will publish annually the following information with additional announcements as necessary in the official gazette:
-An enumeration of the lists of qualified suppliers maintained, including their headings, in relation to the products or categories of products to be purchased through the lists;
-The criteria for inscription on these lists and the screening procedures involved, including:
- Technical qualifications;
- Information necessary for establishing the financial, commercial, and technical capacity of suppliers;
- This means by which the qualification will be verified;
- Specific qualification criteria, such as compatibility, quality control, and stable supply;
- The period of validity of the lists, and the formalities for their renewal.
(26) Concerning the procurement process, the following information will be released for the suppliers' convenience by the contracting entity:
-Guidebooks -- explaining, among other things, he contracting entity's procurement policy, organizations for purchasing and purchasing procedures.
- Each fiscal year's management program and plant engineering programs;
- Economic evaluation methods;
- Guidelines concerning construction, operation and maintenance instructions to be attached to supplied products.
(27) To assist foreign suppliers, a new department for international procurement will be set up at the headquarters. KTA's foreign offices will also conduct procurement-related activities, including:
- Active gathering of product information in the foreign telecommunications markets;
- Effective and prompt response to suppliers' sales activities, inquiries and requests for consultations;
- Provision of necessary documentation and information regarding the procurement involved.
F. APPEAL PROCEDURES
(28) A contracting entity will maintain a complete record of each procurement process, including a complete record of all matters concerning each contract awarded.
(29) A contracting entity shall promptly, and in no case later than seven working days from the date of the completion of the selection/award of a contract, inform unsuccessful applicants by written communication or publication that a selection has been completed.
(30) Upon request by the unsuccessful applicants, the contracting entity shall promptly provide those applicants with pertinent information concerning the reasons why the applicants were not selected, including the relative advantages of the application selected, as well as the name of the winning applicant.
(31) A contracting entity will provide procedures for the hearing and review of complaints arising in connection with any phase of the procurement to be equitably and expeditiously resolved.
ATTACHMENT B TO ATTACHMENT 2
- The ROKG will maintain a complete written record of each procurement process including a complete record of all matters concerning each contract awarded.
- The ROKG shall maintain bid challenge procedures in accordance with the following principles:
Bid challenges may concern any aspect of the procurement process leading up to and including the contract award.
The procurement body for each entity covered by this agreement shall accord impartial and timely consideration to any complaint or bid challenge by a supplier.
A reviewing authority with no substantial interest in the outcome of the procurement shall have responsibility for receiving and deciding bid challenges.
Upon receipt of a bid challenge, the reviewing authority shall expeditiously proceed to investigate the challenge and may delay the proposed award pending resolution of the bid challenge except in cases of urgency or where the delay would be prejudicial to the public interest. The reviewing authority shall determine the appropriate remedy, which may include reevaluating offers, re-competing the contract, or terminating the contract.
The reviewing authority should be authorized to make recommendations in writing to contracting authorities respecting all facets of the procurement process, including recommendations for changes in procedures in order to bring them into conformity with the obligations of this agreement. The covered entities will normally follow such recommendations.
Decisions of the reviewing authority respecting bid challenges shall be provided in writing in a timely fashion and made available to the designated contact point and any interested suppliers.
The ROKG shall specify in writing and shall make generally available to any interested suppliers, all bid challenge procedures, including general deadlines maintained or introduced by the procurement body for each entity with respect to bid challenge procedures.,
UNDERSTANDING BETWEEN THE UNITED STATES AND THE REPUBLIC OF KOREA
ON TELECOMMUNICATIONS STANDARDS
February 15, 1990
The Governments of Korea (ROKG) and the United States mutually recognize the importance of transparent and open standards setting procedures for telecommunications equipment as the basis for non-discriminatory, mutually beneficial trade between their nationals.
Both governments agree to meet to discuss telecommunications issues of interest to either party for one additional year. At the end of that time, both parties will assess the need to continue bilateral discussions.
A. STANDARDS SETTING AND APPROVAL PROCEDURES
The Government of Korea affirms that the appeals and commenting procedures in its Petition Act and its Stipulation on the Advance Notice of Legislation are transparent and open to participation by foreign persons in all cases when represented by a Korean national (and in some cases without such representation].
1. By July 1, 1990, the ROKG will organize and make available transparent standard setting and approval procedures for the development of mandatory standards. The procedures will be clear, well-defined, and will contain all necessary information. These standard setting and approval procedures will provide for participation in a timely manner by foreign firms. A well-defined appeals process will be described.
2. By July 1, 1990, the ROKG will ensure the availability of transparent standard setting procedures for the development of national voluntary standards. The procedures will be clear, well-defined, and will contain all necessary information. These standard setting procedures will provide for participation in a timely manner by foreign firms.
3. When non-governmental standards setting organizations request the ROKG to approve their standards as national voluntary standards, the ROKG will approve only those standards which comply with the national voluntary standards setting procedure to be issued by July 1, 1990.
4. The ROKG will, in good faith, attempt to ensure the ability of U.S. persons to participate in the work of private standards-setting organizations.
5. With regard to major institutional computer networks, the ROKG affirms that:
-- Any interested person can propose a draft standard for the Government Computer Network (GNC) to the Ministry of Government Administration.
-- Interested parties will be notified on a timely basis, normally within 30 days, of items to be standardized for the GNC and revisions and amendments to existing standards.
-- Opinions of interested parties, including foreign firms, institutions, users, and other experts, will be collected through public fora [until a consensus of reasonable opinions is reached.]
-- Approved standards will be notified in the Official gazettes.
The ROKG also indicated that the Financial and the Research and Education Computer Networks are likely to follow the above open and transparent procedures.
B. MANDATORY STANDARDS AND APPROVAL CRITERIA
1. The ROKG agrees to limit criteria for wireline telecommunications equipment mandatory standards to the following:
a. Prevention of harm to the network;
b. Prevention of harm to network and radio personnel (and users];
c. Electromagnetic interference;
d. Harm to billing equipment;
e. Degradation of service to persons other than the user[; and
f. other technical causes of harm to the network].
2. By July 1, 1990, Technical Regulations for wireline telecommunications equipment will not include any other criteria other than those listed in B.l., such as performance or other requirements beyond those necessary to prevent technical harm to the network.
The ROKG affirms that its MFC --,multiple frequency code -standards are limited to requirements which prevent technical harm to the network.
3. After [July 1, 1991], mandatory standards for wireless telecommunications equipment except for navigation and aviation safety equipment (as defined by the ROKG in Attachment I) will not include any other criteria, such as performance requirements, other than no-harm-to-the-spectrum.
C. ACCEPTANCE OF TEST DATA
1. By July 1, 1990, the ROKG has committed to merge its existing approval procedures for wireline telecommunications equipment into one approval procedure: "The Type Approval System".
2. By July 1, 1990, the ROKG will accept test data generated by foreign laboratories and manufacturers for use in the approval process for all wireline and for all wireless terminal equipment except for navigation and aviation safety equipment (as defined by the ROKG in Attachment I).
3. In order to be accepted by the ROKG, the foreign independent laboratory or foreign manufacturer must [either be accredited by the ROKG or present test data that shows compliance with the standards criteria in the Technical Regulations and) demonstrate testing methods adequate to support the results.
4. The ROKG agrees that upon presentation of appropriate test data and the fulfillment of the type approval process [under the criteria in B.1.), all future shipments of such type approved equipment may be freely imported into Korea without delay.
5. The ROKG reserves the right [,using reasonable sampling procedures,] to exclude, subject to a transparent appeals process, type approved customer premises equipment which does not perform according to the test data provided.
6. The ROKG affirms that the Telecommunications Technology Division of the MOC will ensure impartiality in the approval process for customer premises equipment.
ATTACHMENT TO ATTACHMENT 3
Navigation and Aviation Safety Equipment
1. The importance of navigation and aviation equipments
o Navigation and Aviation Equipments are very important not only protection of radio interferences but also as a Unique communication method with land at sea or in the air.
- These equipments should operate normally at emergency
- These criteria are recommended by CCIR, RR and SOLAS regulations internationally
- ROKG will require some performance criteria but it would be same level with FCC's
2. Followings are the list of navigation and aviation equipment
A. Navigation equipments
- Automatic alarm signal receiver
-Portable radio equipment for lift boat
-Radio direction finder for ship
-Emergency position indicating radio beacon
- F3E radio telephone for ship
- Radar for ship
- SSB tranceiver for ship
B. Aviation equipments
- SSB tranceiver for aircraft.
- DSB transceiver for aircraft
UNDERSTANDING BETWEEN THE UNITED STATES AND THE REPUBLIC OF KOREA
ON TELECOMMUNICATIONS EQUIPMENT
February 15, 1990
The Korean government agrees to accelerate by one year the implementation of each year's scheduled tariff reduction outlined in the current five year tariff reduction program for the following list of telecommunications products:
Korean H.S. Number Description
8517.30 Telephonic or telegraphic switching appartus
.301 --for public exchange
.3011 --of electronic switching system
. 3019 --other
.3091 --of electronic switching system
8517. 4050 Optical Fiber Transmission System
8517. 4060 Carrier equipment for broadcasting system
8517. 4070 Signal Converter
8517. 4090 Other
8517. 80 Other Appartus
.9010 --of electronic switching system public exchange
.9091 --of telephone set
.9092 --of public exchange
.9093 --of private exchange
.9094 --of apparatus for carrier
.9095 --of facsimile
8525.1010 Transmission apparatus Radio-broadcasting apparatus
8525.2030 Transmission apparatus Facsimile Transmission equipment
8525.2060 Transmission apparatus Transceivers
8527. 90 Reception apparatus for radio-telephony .... 4) other
8529.10.9290 Antenna for 8525 and 8527
8529.9099 Parts (assemblies) of 8525 and 8527
[8531.1080.00 Paging alerting devices]
[8531.1090 Parts (assemblies) for 8531]
[ final decision on bracketed items to be made by 3/31/90]
TANC offers these agreements electronically as a public service for general reference.
Every effort has been made to ensure that the text presented is complete and accurate.
However, copies needed for legal purposes should be obtained from official archives maintained by the appropriate agency.