Page 363 - Regional Comprehensive Economic Partnership (RCEP)

nationalisation (hereinafter referred to as “expropriation” in this regulations, and policies are applied on a non-discriminatory
Chapter), except: basis.

(a) for a public purpose; 4. This Article does not apply to the issuance of compulsory licences
granted in relation to intellectual property rights, or to the
(b) in a non-discriminatory manner; revocation, limitation, or creation of intellectual property rights, to
the extent that such issuance, revocation, limitation, or creation is
(c) on payment of compensation in accordance with consistent with Chapter 11 (Intellectual Property) and the TRIPS
paragraphs 2 and 3; and Agreement.
31

(d) in accordance with due process of law. 5. Notwithstanding paragraphs 1 through 3, any measure of
expropriation relating to land shall be as defined in the existing
2. The compensation referred to in subparagraph 1(c) shall: laws and regulations of the expropriating Party, and shall be, for
the purposes of and on payment of compensation, in accordance
26
(a) be paid without delay; with the aforesaid laws and regulations. Such compensation shall
be subject to any subsequent amendments to the aforesaid laws
(b) be equivalent to the fair market value of the expropriated and regulations relating to the amount of compensation where
investment at the time when the expropriation was publicly such amendments follow the general trends in the market value
announced, or when the expropriation occurred, of the land.
27
whichever is earlier (hereinafter referred to as the “date of
expropriation” in this Chapter); 28, 29, 30
32
Article 10.14: Denial of Benefits
(c) not reflect any change in value occurring because the
intended expropriation had become known earlier; and 1. A Party may deny the benefits of this Chapter to an investor of
another Party that is a juridical person of that other Party and to
(d) be effectively realisable and freely transferable. investments of that investor if the juridical person:

3. In the event of delay, the compensation shall include an (a) is owned or controlled by a person of a non-Party or of the
appropriate interest in accordance with the expropriating Party’s denying Party; and
laws, regulations, and policies provided that such laws,
(b) has no substantial business activities in the territory of any
Party other than the denying Party.
26 The Parties understand that there may be legal and administrative processes that
need to be observed before payment can be made. 2. A Party may deny the benefits of this Chapter to an investor of

27 For the Philippines, the time when the expropriation was publicly announced for the another Party that is a juridical person of that other Party and to
purpose of calculating the fair market value of the expropriated investment refers to the investments of that investor if persons of a non-Party own or
date of filing of the Petition for Expropriation. control the juridical person and the denying Party adopts or

28 For Australia, Brunei Darussalam, Korea, Malaysia, New Zealand, and Singapore,
the date of expropriation for the purpose of calculating the fair market value of the
expropriated investment means the date immediately before the expropriation occurs. 31 For greater certainty, the Parties recognise that, for the purposes of this Article, the
“revocation” of intellectual property rights includes the cancellation or nullification of
29 For Cambodia, Lao PDR, Myanmar, and Viet Nam, the date of expropriation for the such rights, and the “limitation” of intellectual property rights includes exceptions to
purpose of calculating the fair market value of the expropriated investment means the such rights.
date when the expropriation decision is issued by the competent authority.
32 A Party’s right to deny the benefits of this Chapter as provided for in this Article may
30 For Thailand, the date of expropriation for the purpose of calculating the fair market be exercised at any time.
value of the expropriated investment means the date when the expropriation occurs.

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