m) "Competent Authority" refers to the government authorities listed below or their delegated entities for issuing Certificate of Origin under the legislation of each Signatory Party, responsible for the implementation of the provisions of this Chapter:
(i) in MERCOSUR:
- Ministerio de Industria - Secretaria de Industria y Comercio - Direccion Nacional de Politica Comercial Externa / Ministry of Industry - Secretariat of Industry and Trade - National Directorate of External Trade Policy Julio A. Roca N° 651- 6th Floor - Office 26 - Buenos Aires, Argentina Fax: (5411) 4349 3809
- Ministério do Desenvolvimiento, Industria e Comércio Exterior - Secretaria de Comércio Exterior (GECEX) - Departamento de Negociagdes Internacionais (DETNT) / Ministry of Development, Industry and Foreign Trade - Secretariat of Foreign Trade (SECEX) - Department of International Negotiations (DEINT) Esplanada dos Ministérios, Block J, 7th Floor - Brasilia, Brasil. Fax: (5561) 2027 7385
- Ministerio de Industria y Comercio - Direccion General de Comercio Exterior - Direccion de Operaciones de Comercio Exterior / Ministry of Industry and Trade - Directorate General of Foreign Trade - Directorate of Foreign Trade Operations Av. Mariscal Lopez N° 3333 â Asuncion, Paraguay. Fax: (59521) 616 3084
- Ministerio de Economfa y Finanzas - Asesoria de Politica Comercial / Ministry of Economy and Finance - Trade Policy Bureau Colonia 1206, 2nd. Floor - Montevideo, Uruguay.Fax: (5982) 902 03 54 int 15
(ii) in Egypt:
General Organization for Export And Import Control
Nearby Cargo Village at Cairo Airport - Cairo, Egypt
Tel. No. (00202) 5758195 / (00202) 5785877 / (00202) 5756933 http://www.goeic.gov.eg/en
or their successors.
Section II. CRITERIA FOR ORIGINATING GOODS
Article 2. General Requirements
1. For the purpose of implementing this Agreement, the following goods shall be considered as originating in a Signatory Party:
a) the goods wholly produced or obtained in the territory of the Signatory Party as defined in Article 4 of this Chapter; and,
b) the goods not wholly produced in the territory of the Signatory Party, provided that the said goods are eligible under Article 3 or Article 5 of this Chapter.
2. The provisions of paragraph 1 above exclude used or second hand goods.
Article 3. Cumulation of Origin
Goods originating in any of the Signatory Parties, when used as an input for a finished good in the other Signatory Parties, shall be considered as originating in the latter.
Article 4. Wholly Obtained Goods
1. The following shall be considered as wholly produced or obtained in the territory of any of the Signatory Parties:
a) mineral goods extracted from the soil or subsoil of any of the Signatory Parties;
b) plants (2) and plant goods grown, harvested, picked or gathered there;
c) live animals (3) born and raised there, including by aquaculture;
d) goods from live animals as in (c) above;
e) animals and goods thereof obtained by hunting, trapping, collecting, fishing and capturing there;
f) waste and scrap resulting from utilizing, consuming or manufacturing operations conducted in the territory of any of the Signatory Parties, provided they are fit only for the recovery of raw materials;
g) goods obtained from the seabed and subsoil beyond the limits of national jurisdiction provided that the Signatory Party has the rights of exploitation;
h) goods of sea fishing obtained, only by their vessels according to paragraph 2, under a specific quota or other fishing rights allocated to a Signatory Party by international agreements;
j) goods made aboard their factory ships exclusively from goods referred to in g) and h) above; and,
k) goods produced in any of the Signatory Parties exclusively from the goods specified in subparagraphs a) to i) above.
2. The terms "their vessels" and "their factory ships" in subparagraphs 1,h) and 1.i) shall apply only to vessels and factory ships:
a) which are flagged and registered or recorded in a Signatory Party; and,
b) which are owned by a natural person with domicile in that Signatory Party or bya commercial company, established and registered in that Signatory Party in accordance with its laws and performing its activities in conformity with the laws and regulations of the said Signatory Party, and which have at least 75 % of the crew composed of nationals of that Signatory Party, provided that the master and officers are nationals of that Signatory Party.
Article 5. Sufficiently Worked of Processed Goods
1. The following goods shall be considered as originating in the territory of any Signatory Party:
a) Goods that are not subject to specific rules of origin, when:
(i) Classified in a different heading (four digits level) of the Harmonized System from those in which all non-originating materials used in its the manufacture are classified.
(ii) In the case that subparagraph (i) cannot be satisfied, the value of all non- originating materials used in its manufacture does not exceed 45% of the ex-works price of the final good. In the case of Paraguay, the referred value of non-originating materials should not exceed 55% of the ex-works price.
b) Goods that satisfy the specific rules of origin established in Annex II.4. The specific rules of origin shall prevail over the rule mentioned in subparagraph 1.a) above. The Signatory Parties could establish future specific rules of origin, in exceptional and justified situations, as well revise the specific rules of origin established in Annex II.4.
2. For the purposes of determining the CIF value of non-originating materials for countries without a coastline, the port of destination of the imported non-originating materials shall be the first seaport or inland waterway port located in any of the other Signatory Parties.
3. Pursuant to subparagraph 1.a), a good will be considered to have undergone a change in tariff classification as provided for in subparagraph 1.a)(i) if the value of all non-originating materials that are used in the production of the good and that do not undergo the applicable change in tariff classification does not exceed 10% of the ex-works value of the good.
This provision shall not be applicable to goods classified under Chapters 50 to 63 of the Harmonized System.
4. Paragraph 3 shall apply only to trade between:
a) Uruguay and Egypt; and
b) Paraguay and Egypt.
5. Paragraphs 1 to 4 are subject to the provisions of the Article 6 of this Chapter.
Article 6. Insufficient Working or Processing Operations
The following operations shall be considered as insufficient working or processing to confer the status of originating to a good, whether or not the requirements of Article 5 of this Chapter are satisfied:
a) preserving operations to ensure that the goods remain in good condition during transport and storage such as aeration. drying, refrigeration, immersion in salty or sul.phured water or in water added with other substances, extraction of damaged parts and similar operations;
b) dilution in water or in any other substance which does not substantially alter the good's characteristics;
c) simple operations such as removal of dust, sifting, screening, sorting, classifying, grading, matching, washing, painting, husking, stoning of seeds, slicing and cutting;
d) simple change of package and breaking-up and assembly of packages;
e) simple packing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
f) affixing or printing marks, labels, logos and other like distinguishing signs on goods or their packaging;
g) simple cleaning, including removal of oxide, oil, paint or other coverings;
h) simple assembly of parts to constitute a complete article or disassembly of goods into parts, in accordance with General Rule 2a of the Hannonized System;
i) slaughter of animals;
j) simple mixing of goods, provided that the characteristics of the obtained good are not essentially different from those of the mixed goods;
k) oil application;
l) ironing or pressing of textiles;
m) simple polishing operations;
n) partial or total bleaching, polishing, and glazing of cereals and rice;
o) operations to color sugar or ta form sugar lumps;
p) a combination of two or more of the above operations.
Article 7. Accessories, Spare Parts and Tools
Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and which are included in the price thereof, or which are not separately invoiced, shall be considered as one with the piece of equipment, machine, apparatus or vehicle in question.
Article 8. Fungible Materials
1. For the purpose of establishing if a good is originating when in its manufacture are utilized originating and non-originating fungible materials, mixed or physically combined, the origin of such materials can be determined by any of the inventory management methods applicable in the Signatory Parties.
2. Where considerable cost or material difficulties arise in keeping separate stocks of originating and non-originating materials, which are identical and interchangeable, the Competent Authorities may, at the written request of those concerned, authorize the so-called "accounting segregation" method to be used for managing such stocks.
3. This method must be able to ensure that the number of goods obtained which could be considered as "originating" is the same as that which would have been obtained if there had been physical segregation of the stocks.
Article 9. Sets
1. Sets, as defined in General Rule 3 of the Harmonized System, shall be considered as originating when all component goods are originating.
2. Nevertheless, when a set is composed of both originating and non-originating goods, the set as a whole shall be considered as originating, provided that the CIF value of the non-originating goods utilized in the composition of the set does not exceed 15% per cent of the ex-works price of the set.
Article 10. Unit of Qualification
1. The unit of qualification for the application of the provisions of this Chapter shall be the particular good which is considered as the basic unit when determining classification using the nomenclature of the Harmonized System.
It follows that:
a) when a good composed of a group or assembly of articles is classified under the terms of the Harmonized System in a single heading, the whole constitutes the unit of qualification;
b) when a consignment consists of a number of identical goods classified under the same heading of the Harmonized System, each good must be taken individually when applying the provisions of this Protocol,
2. Where, under General Rule 5 of the Harmonized System, packaging is included with the good for classification purposes, it shall be included for the purposes of determining origin.
Article 11. Neutral Elements or Indirect Materials
1. "Neutral elements" or "indirect materials" means goods used in the production, testing or inspection of goods but not physically incorporated into the goods, or goods used in the maintenance of buildings or the operation of equipment associated with the production of goods, including:
a) energy and fuel;
b) plant and equipment;
c) tools, dies, machines and moulds;
d) parts and materials used in the maintenance of plant, equipment and buildings;
e) goods which do not enter into the final composition of the good;
f) gloves, glasses, footwear, clothing, safety equipment, and supplies;
g) equipment, devices, and supplies used for testing or inspecting the goods;
h) lubricants, greases, compounding materials and other materials used to operate equipment and buildings.
2. An indirect material shall be considered as originating without regards to where it is produced. Its value shall be the cost registered in the accounting records of the producer of the exported good.
Article 12. Containers and Packaging Materials for Shipment
The containers and packaging materials for shipment, used exclusively for transporting goods shall not be taken into account when determining the origin of the goods.
Article 13. Intermediate Materials
The producer of a good may consider as intermediate material any material produced in a Signatory Party used in the production of a good, provided that such intermediate material qualifies as originating in accordance with the provisions of this Chapter. The intermediate material will be considered as originating once incorporated into the final good if it meets the rules of this Chapter.
Article 14. Direct Transport, Transit and T Rans-Shipment
In order for the originating goods to benefit from the preferential treatment provided for under this Agreement, they shall be transported directly between the exporting Signatory Party and the importing Signatory Party. The goods are transported directly provided that:
a) they are transported through the territory of one or more Signatory Parties;
b) they are in transit through one or more territories of third countries, with or without trans-shipment or temporary warehousing in such territories, under the surveillance of the Customs Authorities therein, provided that:
(i) the transit entry is justified for geographical reasons or by considerations related exclusively to transport requirements;
(ii) they are not intended for trade, consumption, use or employment in the country of transit;
(iii) they do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition.
Article 15. Operations Involving Third Operators
Operations involving third operators shall be allowed provided that, in addition to the compliance with the provisions mentioned paragraphs a) and b) of Article 14 of this Chapter, the commercial invoice issued by the third operator and the Certificate of Origin issued by the Competent Authorities of the exporting Signatory Party are submitted. In these cases, the Customs Authorities shall require that in the Certificate of Origin is included the number and date of the commercial invoice issued by the third operator and his name, country and address. If this data is not available when the Certificate of Origin is issued, the commercial invoice attached to the importation clearance document shall contain a declaration attesting that the commercial invoice corresponds to the Certificate of Origin submitted. The Declaration shall contain the number and the date of issuance of the corresponding Certificate of Origin and be signed by the operator. In the event of non-compliance of this requirement, the Customs Authorities shall not accept the Certificate of Origin and shall not grant the tariff preferences established in this Agreement.
Article 16. Goods Stored In Customs Warehouses
The originating goods that are stored under the control of a custom office in a customs warehouse of a Signatory Party with the corresponding Certificate of Origin, shall only undergo operations designed to ensure their trading, preservation in goad condition, breaking-up of packages, or other operations, provided that their tariff classification and their originating status are not changed. Such goods shall be sent totally or partially to any Signatory Party. Should the neccesary national legislation on the matter be enacted, the Competent Authorities may issue replacement Certificates of Origin for all or some of these goods, within the period of validity of the Certificate of Origin submitted when the goods enter the customs warehouse.
Article 17. Principle of Territoriality
1. Except as provided for in Articles 2 and 3 of this Chapter, the conditions for acquiring originating status set out in Section II of this Chapter must be fulfilled without interruption in a Signatory Party.
2. Except as provided for in Articles 2 and 3 of this Chapter, where originating goods exported from a Signatory Party to a third country return to the former, they must be considered as non- originating, unless it can be demonstrated to the satisfaction of the Customs Authorities that:
a) the returning goods are the same as those exported; and,
b) they have not undergone any operation beyond those necessary to preserve them in good condition while in that third country or while being exported.
Article 18. Exhibitions
1. Originating goods, sent for exhibition in third country and sold after the exhibition for importation in a Signatory Party shall benefit. on importation, from the provisions of this Agreement, provided it is shown to the satisfaction of the Customs Authorities that:
a) an exporter has consigned these goods from the Signatory Party to the third country in which the exhibition is beld and has exhibited them there;
b) the goods have been sold or otherwise disposed of by that exporter to a person in the Signatory Party;
c) the goods have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition; and,
d) the goods have not been used for any purpose other than demonstration at the exhibition.
2. A proof of origin must be issued or made out in accordance with the provisions of Section III and submitted to the Customs Authorities of the importing Signatory Party according to the normal procedure. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the conditions under which they have been exhibited may be required.
3. The provisions of this Article shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organized for private purposes in shops or business premises with a view to the sale of foreign goods, and during which the goods remain under customs control.
Section III. PROOF OF ORIGIN
Article 19. Origin Certification
1, The Certificate of Origin is the document that certifies that the goods fulfill the origin requirements as set out in this Chapter, so that they can benefit from the preferential tariff treatment as foreseen in this Agreement. The said Certificate of Origin is valid for one single importing operation concerning one or more goods and its original version shall be included in the documentation to be submitted to the Customs Authorities of the importing Signatory Party.
2. The Certificate of Origin mentioned in the preceding paragraph shall be issued in the form agreed upon by the Parties in Annex II.1 and upon a declaration by the exporter of the goods and the respective commercial invoice.
3. In all cases, the number of the commercial invoice shall be indicated in the box reserved for this purpose in the Certificate of Origin.
Article 20. Issuance of Certificates of Origin
1, For the issuance of a Certificate of Origin, the exporter of the good shall present the corresponding commercial invoice and a request containing a declaration by the exporter, certifying that the goods fulfill the origin criteria of this Chapter, as well as the necessary documents supporting such a declaration.
The said declaration form is attached in Annex II.2 of this Chapter.
2. The description of the good in the origin declaration, which certifies the fulfillment of the origin requirements set out in this Chapter, shall correspond to the respective tariff classification, as well as with the description of the goods in the commercial invoice and in the Certificate of Origin.
3. The Certificate of Origin shall be valid for a period of one hundred and eighty (180) days from its date of issuance.
4. The Certificate of Origin shall be signed and issued by the Competent Authorities. The Competent Authority will be responsible for all the information of the issued Certificates of Origin.
5, The issuing Competent Authorities and the certifying offices or institutions shall keep the documents supporting the Certificate of Origin for a period of at least three (3) years, from its date of issuance.
6. Certificates of Origin shall be issued in English.
7. Certificates of Origin shall be issued before the goods have been exported.
Article 21. Certificates of Origin Issued Retrospectively
1, Notwithstanding Article 20.7 of this Chapter, Certificates of Origin may exceptionally be issued after the exportation of the goods to which it relates if:
a) it was not issued at the time of exportation because of special circumstances; or,
b) it is demonstrated to the satisfaction of the Competent Authorities that a Certificate of Origin was issued but was not accepted at importation for technical reasons (4).
2. For the implementation of paragraph 1, the exporter must indicate in his application the place and date of exportation of the goods to which the Certificate of Origin relates, and state the reasons for his request.
3. The Competent Authorities, as referred to Article 20.4 of this Chapter, may issue a Certificate of Origin retrospectively only after verifying that the information supplied in the exporter's application corresponds to that in the corresponding file.
4. Certificates of Origin issued retrospectively must be endorsed with the following phrase in English:
"ISSUED RETROSPECTIVELY"
5. The endorsement referred to in paragraph 4 shall be inserted in Box 11 of the Certificate of Origin.
Article 22. Issuance of a Duplicate Certificate of Origin
1. In the event of theft, loss or destruction of a Certificate of Origin, the exporter may apply to the issuing Competent Authorities for a duplicate made out on the basis of the export docwnents in their possession.
2. The duplicate issued in this way must be endorsed with the following word in English:
"DUPLICATE"
3. The endorsement referred to in paragraph 2 shall be inserted in Box 11 of the duplicate Certificate of Origin.