1. A Disputing Party may appeal a Panel Report to an Appellate Panel on the grounds that the Panel erred in law, failed to observe a principle of natural justice or acted beyond or refused to exercise its jurisdiction. An Intervenor may not appeal a Panel Report.
2. Where a Disputing Party provides a notice of appeal as provided in Annex 1705.1, an Appellate Panel shall be established in accordance with Article 1704 (Establishment of Presiding Body) and, notwithstanding Article 1704(3), shall be composed of three members.
3. Upon receipt by the Secretariat of a notice of appeal, any requirement for a Complaint Recipient to comply with this Agreement within a stipulated time or to pay Operational Costs is suspended until such time as the appeal, and any subsequent re-hearing by the Panel that may be required, are concluded.
4. The Appellate Panel shall, on the completion of the hearing, issue a report with reasons which:
(a) may confirm, vary, rescind, or substitute the Report of the Panel in whole or in part, or refer the matter back to the Panel for re-hearing; and
(b) shall award Operational Costs in accordance with Rule 47, and may, in its discretion, award Tariff Costs in which case they shall be made in accordance with Rules 48 and 49, of Annex 1705(1).
5. If the Appellate Panel cannot release its final report within the period stipulated in Rule 46 of Annex 1705(1), it does not lose jurisdiction and shall inform the Parties in writing of the reasons for the delay together with an estimate of the date by which it will issue its decision.
6. The Appellate Panel retains jurisdiction for the purposes of assessing an Operational Costs or Tariff Costs order after it issues its decision, and may, at the request of a Disputing Party or on its own initiative, order Operational Costs or Tariff Costs to be paid, specifying the amount payable by a Participating Party, and to whom it is payable.
7. If a matter is not referred back for re-hearing, the Appellate Report is deemed to be a Panel Report for purposes of determining compliance under Articles 1707(9) to 1707(14) (Compliance Panel Process) or matters under Article 1709 (Retaliatory Action), together with those parts of the Panel Report which have not been superseded by the Appellate Report.
8. If an Appellate Panel refers a matter back to the Panel for re-hearing, the Secretariat shall fix a date to reconvene the Panel forthwith.
9. Within 10 days after receipt of the Appellate Report, any Appellant or Respondent may, with notice to the Secretariat and all other Appellants and Respondents, request that the Appellate Panel:
(a) clarify one or more aspects of its report, in which case the Appellate Panel shall, within 15 days of receipt of the notice, provide the clarification; or
(b) correct in its report any errors in computation or translation, any clerical or typographical errors, or any errors of a similar nature, in which case the Appellate Panel may, within 15 days of receipt of the notice, make such corrections as it considers appropriate.