(d) ironing or pressing of textiles (any type of fibre and yarn, woven fabrics of all types of fibres and yarn and articles thereof);
(e) painting, polishing, varnishing, coating, impregnating with oil or other substances;
(f) husking, partial or total bleaching, polishing or glazing of cereals and rice;
(g) freezing, defrosting;
(h) operations of colouring, dissolving or blending sugar, including blending with other materials, or forming sugar lumps;
(i) peeling, removing seeds, stones, shells or cutting of fruits, nuts and vegetables;
(j) sharpening, simple grinding or simple cutting;
(k) sifting, screening, sorting, classifying, grading, matching, making-up of sets of articles;
(l) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
(m) simple operations of assembly or disassembly of goods into parts;
(n) engraving, affixing or printing trademarks, logos, labels and other like distinguishing signs on goods or their packaging;
(o) mixing of goods which does not lead to a sufficient difference of good from the original components;
(p) slaughter of animals; 14
(q) cutting of meat, fish; or
(r) a combination of two or more operations specified above.
2. All the operations carried out in the exporting Party on a given product shall be taken into account when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1 of this Article.
3. For the purposes of paragraph 1 of this Article "simple operations" shall mean operations which do not require special knowledge (skills), or machines, apparatus and equipment specially designed for those operations.
Article 28. Cumulation of Origin
1. The goods originating in a Party which are used as materials in the manufacture of goods in another Party shall be considered as originating in such Party where the last operations other than those referred to in paragraph 1 of Article 27 (Minimal Operations or Processes) of this Chapter have been carried out.
2. Products originating in a Party, which do not undergo any working or processing in the exporting Party, shall retain its origin if they are exported to the other Party.
Article 29. Unit of Qualification
The unit of qualification for the application of this Chapter shall be the particular product which is considered to be the basic unit when determining classification using the nomenclature of the Harmonised System. It follows that:
(a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonised System in a single heading or subheading, the whole constitutes the unit of qualification;
(b) when a consignment consists of a number of identical products classified under the same heading or subheading of the Harmonised System, each individual item shall be taken into account when applying this Chapter.
Article 30. Accessories, Spare Parts and Tools
1. Accessories, spare parts, or tools presented and classified with the good shall be considered as part of the good, provided that:
(a) they are invoiced together with the good; and
(b) their quantities and values are commercially customary for the good.
2. Where a good is subject to change in tariff classification criterion set out in Annex 2 (List of Product Specific Rules) of this Agreement, accessories, spare parts, or tools described in paragraph 1 of this Article shall be disregarded when determining the origin of the goods.
3. Where a good is subject to a regional value content requirement, the value of the accessories, spare parts or tools described in paragraph 1 of this Article shall be taken into account as originating materials or non-originating materials, as the case may be, in calculating the regional value content of the goods.
Article 31. Packing, Packages and Containers
1. Containers and packing materials used for the transport of goods shall not be taken into account in determining the origin of the goods.
2. The origin of the packaging materials and containers in which goods are packaged for retail sale shall be disregarded in determining the origin of the goods, provided that the packaging materials and containers are classified with the goods.
3. Notwithstanding paragraph 2 of this Article, where goods are subject to a regional value content requirement, the value of the packaging materials and containers used for retail sale shall be taken into account as originating materials or non-originating materials, as the case may be, in calculating the regional value content of the goods.
Article 32. Neutral Elements
When determining whether a product is an originating product, the origin of neutral elements used in the production, testing or inspection of the product but not physically incorporated into the product by themselves, shall not be taken into account. Such neutral elements include, but are not limited to the following:
(a) fuel, energy, catalysts and solvents;
(b) equipment, devices and supplies used for testing or inspecting the products; (c) gloves, glasses, footwear, clothing, safety equipment and supplies;
(d) tools, dies and moulds;
(e) spare parts and materials used in the maintenance of equipment and buildings; and
(f) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings.
Article 33. Sets
Goods classified as set in accordance with the General Rule 3 for the Interpretation of the Harmonised System, shall be regarded as originating if all the components included in the set considered as originating materials. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of non-originating products as determined in accordance with Article 25 (Regional Value Content) of this Chapter, does not exceed 15% of the ex-works price of the set.
Article 34. Principle of Territoriality
The conditions for acquiring originating status of the product set out in Article 23 (Originating Goods) and Article 32 (Neutral Elements) of this Chapter shall be fulfilled without any interruption in a Party.
Article 35. Direct Transport
1. Preferential tariff treatment provided for in this Agreement shall be applied to goods which satisfy the requirements of this Chapter and are directly transported between the Parties.
2. Notwithstanding paragraph 1 of this Article, the following shall be considered as transported directly from the exporting Party to the importing Party:
(a) goods that are transported without passing through a non-Party; and
(b) goods whose transport involves transit through one or more non-Parties with or without trans-shipment or temporary storage in such non-Parties, provided that:
(i) the transit is justified by geographical reasons or by consideration related exclusively to transport requirements;
(ii) the goods do not enter into trade or consumption there; and
(iii) the goods do not undergo subsequent production or any operation there other than unloading, reloading, splitting-up of consignments or any other operation necessary to preserve them in good condition, provided that the goods remain under customs control during transit through non-Parties.
3. Compliance with the provisions set out in paragraph 2 of this Article shall be evidenced by presenting the customs authorities of the importing Party either with customs documents of the non-Parties, or with any other documents to the satisfaction of the customs authorities of the importing Party.
Section II. IMPLEMENTATION PROCEDURES
Article 36. Proof of Origin
1. In order to confirm the originating status of goods for obtaining free trade regime under this Agreement, either of the following proof of origin shall be submitted to the customs authority of the importing Party:
(a) Certificate of Origin as referred to in Article 37 (Certificate of Origin) of this Chapter; or
(b) Origin Declaration made out by an Approved Exporter as referred to in Article 38 (Origin Declaration by Approved Exporter) of this Chapter.
2. For the purposes of paragraph 1 of this Article, the Parties may agree to establish a system that allows proofs of origin listed in subparagraph (a) and (b) of paragraph 1 of this Article to be issued electronically and/or submitted electronically.
Article 37. Certificate of Origin
1. A Certificate of Origin shall be issued by the authorized body of the exporting Party.
2. The Certificate of Origin shall be issued before or at the time of exportation whenever the products to be exported can be considered originating in that Party subject to the provisions of this Chapter. The exporter, producer or their authorized representative, in accordance with the domestic legislation, shall submit a written application for the Certificate of Origin together with appropriate supporting documents proving that the products to be exported qualify for the issuance of a Certificate of Origin.
3. The Certificate of Origin, specimen of which is set out in Annex 3 (Certificate of Origin) of this Agreement shall be completed in English and duly signed and stamped. A Certificate of Origin shall be valid only within one year from the date of its issuance.
4. In exceptional cases where a Certificate of Origin has not been issued before or at the time of exportation, the Certificate of Origin may be issued retrospectively within one year from the date of shipment, bearing the remark âISSUED RETROSPECTIVELYâ, and remain valid for one year from the date of shipment.
5. For cases of theft, loss or accidental destruction of a Certificate of Origin, the exporter or producer may make a written request to the authorized bodies of the exporting Party for issuing a certified copy, provided that the original copy previously issued has been verified not to be used. The certified copy shall be marked with "DUPLICATE" together with the reference number and the date of issuance of the original Certificate of Origin. The certified copy shall be valid during the term of validity of the original Certificate of Origin.
6. Certificates of Origin which are submitted to the customs authority of the importing Party after the validity may be accepted when failure to observe the time limit is due to force majeure.
Article 38. Origin Declaration by Approved Exporter
1. An Origin Declaration as referred to in point (b) of Article 36 (Proof of Origin) of this Chapter may be made out by an Approved Exporter in accordance with the text as provided in Annex 4 (Origin Declaration) of this Agreement (version in English). The status of Approved Exporter shall be granted and administered by the exporting Party in accordance with its domestic legislation.
2. An Origin Declaration may be made out if the products can be considered as originating in a Party and fulfil the other requirements of this Chapter.
3. The Approved Exporter making out an Origin Declaration shall be prepared to submit at any time, at the request of the customs authorities of the exporting Party, all appropriate documents proving the originating status of the products concerned as well as the fulfillment of the other requirements of this Chapter.
4. An Origin Declaration shall be made out by the Approved Exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, as deemed valid by the customs authority of the importing Party, which describe the goods concerned in such a detail so as to render it identifiable. Origin Declaration shall bear the authorization number of the Approved Exporter, the name and the original signature of the person signing the declaration of origin in manuscript. An Origin Declaration may be made out by the Approved Exporter retrospectively within one year from the date of shipment.
5. An Origin Declaration shall be valid only within one year from the date of the issuance of the invoice or other commercial documents.
Article 39. Electronic System to Exchange Origin Data
The Parties will endeavour to develop an electronic system to exchange origin data to ensure the effective and efficient implementation of this Chapter.
Article 40. Preservation of Origin Documents
1. Each Party shall require its producers, exporters and importers to preserve documents related to the origin of the products as well as the fulfillment of the other requirements of this Chapter for at least three years.
2. Each Party shall require that its authorized bodies preserve copies of Certificates of Origin and other documentary evidence of origin for at least three years.
3. Exporters and importers benefiting from this Agreement shall, within the framework of this Agreement and subject to domestic legislation of the exporting Party and importing Party respectively, comply with the requirements of that Party and submit, at their request, supporting documents regarding the fulfillment of the requirements of this Chapter.
Article 41. Requirements Regarding Importation
1. Each Party shall grant preferential tariff treatment in accordance with this Agreement to originating products imported from the other Party on the basis of a proof of origin as defined in Article 36 (Proof of Origin) of this Chapter.
2. In order to obtain preferential tariff treatment, the importer shall, in accordance with the procedures applicable in the importing Party, request preferential tariff treatment at the time of importation of an originating product and submit the proof of origin as defined in Article 36 (Proof of Origin), as well as other documentary evidence upon requirements of the customs authorities of the importing Party.
3. For the purpose of paragraph 2 of this Article, a proof of origin shall be submitted to the customs authorities of the importing Party within 12 months from the date of issuance.
4. If the importer is not in possession of a proof of origin at the time of importation, the importer may, in accordance with the domestic legislation of the importing Party, make a claim for preferential tariff treatment at the time of importation and present the proof of origin and, if required, other documentation relating to the importation within a period as specified in the legislation of the importing Party. The customs authorities of the importing Party shall complete the import formalities in accordance with the domestic legislation.
Article 42. Discrepancies and Minor Errors
1. The discovery of slight discrepancies between the statements made in the proof of origin and those made in the documents submitted to the customs authority for the purpose of carrying out the formalities for importing the products shall not ipso facto render the proof of origin null and void if it is duly established that that document does correspond to the products submitted.
2. Minor errors such as typing errors on a proof of origin shall not cause the documents referred to in paragraph 1 of this Article to be rejected if those errors are not such as to create doubts concerning the correctness of the statements made in those documents.
Article 43. Notification and Cooperation
1. The Parties shall provide each other with samples of Certificates of Origin including the information on the security features, specimen impressions of stamps used by the authorized bodies for the issue of Certificates of Origin, the models of the authorization numbers granted to approved exporters and the addresses of the customs authorities responsible for verification of origin.
2. In order to ensure the proper application of this Chapter, the Parties shall assist each other, through the customs authorities, in checking the authenticity of the Certificates of Origin and the Origin Declarations and the correctness of the information given in those documents.
Article 44. Verification of Origin
1. To ensure the effective application of this Chapter, the Parties shall assist each other to carry out verification on the authenticity of the proof of origin, the correctness of the information given therein, the originating status of the products concerned, and the fulfillment of any other requirements under this Chapter.
2. The customs authority of the exporting Party shall carry out verifications referred to in paragraph 1 of this Article upon request of the customs authority of the importing Party.
3. The importing Party shall submit the verification request to the exporting Party within three years from the completion or issuance of the proof of origin. The exporting Party is not obliged to conduct verifications based on verification requests received after that deadline.
4. The verification request shall include a copy of the proof of origin and, if appropriate, any other document or information giving reason to believe that the proof of origin is invalid. The reasons for the request shall be specified.
5. The customs authorities of the importing Party may, in accordance with their domestic legislation, suspend preferential tariff treatment or require payment of a deposit equivalent to the full amount of duties on a product covered by a proof of origin until the verification procedure has been accomplished.
6. The customs authority of the exporting Party may request evidence, carry out inspections at exporter's or producer's premises, check the exporter's and the producer's accounts and take other appropriate measures to verify compliance with this Chapter.
7. The requested Party shall notify the requesting Party of the results and findings of the verification within six months from the date of the verification request, unless the Parties agree upon another time frame on justified grounds. If the requesting Party receives no reply within six months or another time frame as agreed upon by the Parties, or if the reply does not state clearly whether the proof of origin is valid or whether a product is an originating product, the requesting Party may deny preferential tariff treatment to the product covered by the proof of origin concerned.
Article 45. Denial of Preferential Tariff Treatment
Except as otherwise provided in this Chapter, the importing Party may deny claim for preferential tariff treatment, if:
(a) the goods do not meet the requirements of this Chapter;
(b) the importer, exporter or producer fails to comply with the relevant requirements of this Chapter;
(c) the proof of origin does not meet the requirements of this Chapter; or
(d) in a case stipulated in paragraph 7 of Article 44 (Verification of Origin) of this Chapter.
Article 46. Confidentiality
Subject to the domestic legislation of each Party, all information which is specified by a Party as confidential or provided on a confidential basis shall not be disclosed without the explicit permission of the person or authority providing it.
Article 47. Sub-Committee on Rules of Origin
In accordance with paragraph 3 of Article 70 (The Joint Committee) of the Agreement, the Sub-Committee on Rules of Origin shall be setup, charged with carrying out administrative cooperation with a view to the correct and uniform application of this Chapter.
Chapter 4. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 48. Customs Procedures and Trade Facilitation
The Parties, with the aim to facilitate trade between them, shall:
(a) simplify, to the greatest extent possible, customs and border-related procedures for trade in goods and related services;
(b) promote co-operation between them in order to enhance their participation in the development and implementation of international conventions and recommendations on trade facilitation; and
(c) co-operate on trade facilitation within the framework of the Joint Committee.
Article 49. General Principles
The Parties, aiming to serve the interests of their respective business communities and to create a trading environment allowing them to benefit from the opportunities offered by the Agreement, agree that in particular the following principles are the basis for the development and administration of trade facilitation measures by their customs authorities and competent authorities of trade-related affairs:
(a) transparency, efficiency, simplification, harmonization and consistency of customs and other border-related procedures;
(b) consistent, impartial, predictable and reasonable administration of laws, regulations and administrative rules relevant to international trade in goods;
(c) promotion of international standards;
(d) consistency with multilateral instruments;
(e) best possible use of information technology;
(f) high standards of public service;
(g) customs and other border controls based on risk management;
(h) cooperation within each Party among customs and other border authorities; and
(i) consultations between the Parties and their respective business communities.
Article 50. Transparency
1. Each Party shall promptly make available and update, as far as practicable in English, the following through Internet:
(a) all laws, regulations, administrative rules of general application relevant to trade in goods;
(b) a description of its importation, exportation and transit procedures, including review and appeal procedures, that informs interested persons of the practical steps needed to import, export or transit of the goods;
(c) the forms and documents required for importation, exportation, or transit through the customs territory of that Party; and
(d) contact information on enquiry points.
2. Each Party shall establish enquiry points for customs and other border-related matters relevant to trade in goods, which may be contacted in English via the Internet. The Parties shall not require the payment of a fee for answering such enquiries.
3. Each Party shall consult its business community on its needs with regard to the development and implementation of trade facilitation measures, giving particular attention to the interests of small and medium-sized enterprises.
4. Each Party shall to the extent practicable and in a manner consistent with its domestic law and legal system, publish in advance, and on the Internet, any proposed laws and regulations relevant to international trade, with a view to affording interested persons an opportunity to comment on them.
5. Each Party shall ensure that a reasonable interval is provided between the publication of laws and regulations relevant to international trade and their entry into force.
Article 51. Simplification of International Trade Procedures
1. The Parties shall apply customs and border procedures related to bilateral trade that are simple, reasonable and impartial.
2. The Parties shall limit controls, formalities and the number of documents required in the context of trade in goods between the Parties to those necessary and appropriate to ensure compliance with legal requirements and thereby simplify to the greatest extent possible the respective procedures. With a view to minimising the incidence and complexity of import, export and transit formalities and to decreasing and simplifying import, export and transit documentation requirements, each Party shall ensure that such formalities and documentation requirements:
(a) are applied with a view to a rapid clearance and release of goods;
(b) are applied in a manner that aims at reducing the time and cost of compliance; and
(c) are the least trade restrictive measure chosen.
3. The importing Party shall not require an original or a copy of the export declaration from the importer unless it is through the channel of bilateral customs mutual administrative assistance and on certain conditions.
4. The Parties shall use efficient customs and trade-related procedures, with a view to reducing costs and unnecessary delays in trade between them, based, as appropriate, on international standards, in particular the standards, guidelines and recommendations of the World Customs Organization (WCO) including the principles of the Revised International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention), the Codex Alimentarius Commission (CAC), the World Organization for Animal Health (WOAH), the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the International Telecommunication Union (ITU) and the relevant international and regional organizations operating within the framework of the International Plant Protection Convention (IPPC).
5. Each Party shall adopt or maintain procedures that:
(a) provide for advance electronic submission and processing of information before the physical arrival of goods in order to expedite their clearance, if the information technology conditions are met;
(b) allow importers to obtain the release of goods prior to meeting all import requirements of that Party if the importer provides sufficient guarantees and where it is decided that neither further examination, physical inspection nor any other submission is required;
(c) provide for the possibility of electronic payment for duties, taxes, fees and charges collected by customs and other related border authorities; and
(d) allow goods intended for import to be moved within the customs territory of the Party under customs control from the customs supervision place of entry to another customs supervision place from where the goods would then be cleared or released.
Article 52. Competent Customs Offices
1. Each Party shall designate the customs offices at which goods may be presented or cleared. In determining the competence and location of these offices and their hours of business, the factors to be taken into account shall include in particular the requirements of trade.