4. The duplicate, which must bear the date of issuance of the original Certificate of Origin, shall take effect as from that date.
Section IV. CONTROL AND VERIFICATION OF CERTIFICATES OF ORIGIN
Article 23.
1. Without prejudice to the presentation of a Certificate of Origin under the conditions laid down in the provisions of this Chapter, the Competent Authority of the importing Signatory Party may, in case of reasonable doubt, request, to the Competent Authority of the exporting Signatory Party, further information in order to verify the authenticity of the Certificate of Origin and the veracity of the information contained in it. This shall not preclude the application of the respective national legislation's regarding illicit customs matters.
2. Compliance with requests for further information, in accordance with this Article, should be limited to records and documents available in the Competent Authorities. Copies of the documentation required for the issuance of the Certificate of Origin may also be requested. This Article does not limit exchanges of information in accordance with the Customs Cooperation Agreements.
3. The reasons to doubt the authenticity of the Certificate of Origin or the veracity of their data must be expressed in a clear and concrete way. For this purpose, the consultations shall be carried out by the Competent Authority designated by each Signatory Party.
4. The Customs Authorities of the importing Signatory Party shall not suspend import operations. However, they may require a guarantee in any of its modalities to preserve fiscal interests, as a precondition to complete import operations.
5, The amount of the guarantee, whenever it is required, may not exceed the value of customs duties applicable to the import of goods from third countries, in accordance with the legislations and customs regulations of the importing Signatory Party.
Article 24.
The Competent Authorities of the exporting Signatory Party shall provide the information requested under Article 23 of this Chapter within sixty (60) days from the date of the receipt of the request for information
Article 25.
The information obtained under the provisions of this Section shall be treated as confidential and shall be used for the purpose of clarifying the matter investigated by the Competent Authority of the importing Signatory Party, as well as during the investigation and prosecution.
Article 26.
In cases where the information requested under Article 23 of this Chapter is not provided within the period specified in Article 24 of this Chapter or it is insufficient to clarify the doubts about the origin of the good, the Competent Authority of the importing Signatory Party may initiate an investigation on the matter within ninety (90) days from the date of the request for information. If the information is satisfactory, the Customs Authorities must release the importer from the guarantee referred to in Article 23 of this Chapter within thirty (30) days after the provision of the information.
Article 27.
1. Once the investigation is initiated, the Customs Authority of the importing Signatory Party shall not suspend import operations relating to identical goods from the same exporter or producer. However, the Customs Authority may require a guarantee in any of its modalities, to preserve fiscal interests, as a precondition to complete import operations.
2. The amount of the guarantee, whenever it is required, will be established under the terms of Article 23 of this Chapter.
Article 28.
The Competent Authority of the importing Signatory Party shall immediately notify the importer and the Competent Authority of the exporting Signatory Party of the initiation of the investigation of origin, in accordance with the procedures laid down in Article 29 of this Chapter.
Article 29.
During the investigation process, the Competent Authority of the importing Signatory Party may:
a) request, through the Competent Authority of the exporting Signatory Party, new information and copies of documents in the possession of the entity issuing the Certificate of Origin under investigation according to Article 23 of this Chapter, necessary to verify the authenticity of the Certificate of Origin and the veracity of the information contained therein. The request shall indicate the number and date of issuance of the Certificate of Origin under investigation;
b) in the case of verification of the regional or local value content, the producer or exporter shall provide access to any information or documentation necessary to establish the import CIF value of the non-originating goods used in the production of the good under investigation;
c) in the case of verification of the characteristics of some production processes required as specific origin requirements, the producer or exporter shall provide access to any information and documentation to confirm such processes;
d) send to the Competent Authority of the exporting Signatory Party a written questionnaire for the exporter or producer, indicating the Certificate of Origin under investigation:
e) request that the Competent Authorities of the exporting Signatory Party facilitate visits to the premises of the producer, aimed at examining the production processes as well as the equipment and tools used in the manufacture of the good under investigation;
f) the Competent Authorities of the exporting Signatory Party will accompany the authorities of the importing Signatory Party during the visit, which may include the participation of experts who will act as observers. The experts must be identified in advance, must be neutral and must not have interests in the investigation. The exporting Signatory Party may deny the participation of such experts when they represent the interests of companies or institutions involved in the investigation;
g) after the visit is concluded, the participants must sign a minute stating that the visit was carried out in accordance to the requirements of this Chapter. The minute shall also contain the following information: date and local where the visit took place; identification of the Certificates of Origin which motivated the investigation; identification of the goods under investigation: identification of the participants with an indication of the body or entity to which they belong; and a report of the visit. The exporting Signatory Party may request the postponement of a verification visit by a period not exceeding thirty (30) days;
h) to carry out other procedures agreed upon by the Signatory Parties involved in the case under investigation.
Article 30.
The Competent Authorities of the exporting Signatory Party shall provide the requested information and documentation according to Article 29 a) to d) of this Chapter, within sixty (60) days from the date of tbe receipt of the request.
Article 31.
Regarding the proceedings referred to in Article 29 of this Chapter, the Competent Authority of the importing Signatory Party may request to the Competent Authority of the exporting Signatory Party the participation or advice of experts concerning the matter under investigation.
Article 32.
In the cases in which the information or documentation requested to the Competent Authority of the exporting Signatory Party is not submitted within the stipulated deadline, or if it is insufficient for determining the authenticity or veracity of the Certificate of Origin under investigation, or still, if the producers do not agree to the visit, the Competent Authorities of the importing Signatory Party may consider that the goods under investigation do not fulfill the origin requirements, and may, as a result, deny preferential tariff treatment to the goods mentioned in the Certificate of Origin under investigation according to Article 27 of this Chapter, and thus conclude such investigation.
Article 33.
1. The Competent Authorities of the importing Signatory Party shall make efforts to conclude the investigation within one hundred and twenty (120) days from the date of the receipt of the information requested in accordance with Article 29 of this Chapter.
2. If new investigative actions or the presentation of further information is considered necessary, the Competent Authorities of the importing Signatory Party shall communicate the fact to the Competent Authorities of the exporting Signatory Party. The deadline for the execution of these new actions or for the presentation of further information shall not exceed ninety (90) days, from the date of the receipt of the information referred to in Article 29 of this Chapter,
3. If the investigation is not concluded within ninety (90) days from its initiation, the importer shall be released from the payment of the guarantee, regardless of the continuation of the investigation.
Article 34.
1. The Competent Authorities of the importing Signatory Party shall inform the importers and the Competent Authorities of the exporting Signatory Party of the conclusion of the investigation process, as well as the reasons that led to its decision.
2. The Competent Authority of the importing Signatory Party shall grant the Competent Authority of the exporting Signatory Party access to the investigation files, in accordance with its legislation.
Article 35.
During the investigation process, occasional modifications in the manufacturing conditions made by the companies under investigation shall be taken into account.
Article 36.
Once the investigation is finished with the qualification of the origin of the goods and the validity of the origin criterion contained in the Certificate of Origin, the importer shall be released from the guarantees required in Articles 23 and 27 of this Chapter, within thirty (30) days.
Article 37.
1. Once the investigation establishes the non-qualification of the origin criterion of the goods contained in the Certificate of Origin, duties shall be charged as if the goods were imported from third countries and the sanctions established in this Agreement and/or the ones foreseen in the legislation in force in each Signatory Party shall be applied.
2. In such a case, the Competent Authorities of the importing Signatory Party may deny preferential tariff treatment to new imports relating to identical goods from the same producer, until it is clearly demonstrated that the manufacturing conditions were modified so as to fulfill the provisions of this Chapter.
3. Once the Competent Authorities of the exporting Signatory Party have sent the information demonstrating that the manufacturing conditions were modified, the Competent Authorities of the importing Signatory Party shall have forty five (45) days, from the date of the receipt of the said information to communicate its decision on the matter, or a maximum of ninety (90) days if a new verification visit to the producer's premises, according to paragraph e) of Article 29 of this Chapter, is deemed necessary.
4. If the Competent Authorities of the importing and the exporting Signatory Party fail to agree on the demonstration of the modification on the manufacturing conditions, they may make use of the procedure established as in Article 40 of this Chapter.
Article 38.
1. A Signatory Party may request another Signatory Party to investigate the origin of a good imported by the latter from another Signatory Party, whenever there are well-founded reasons for suspecting that the goods of the first Signatory Party undergo competition from imported goods with preferential tariff treatment, which do not fulfill the provisions of this Chapter.
2. For such purposes, the Competent Authorities of the Signatory Party requesting the investigation shall bring to the Competent Authorities of the importing Signatory Party the relevant information within forty-five (45) days, from the date of the request. Once this information is received, the importing Signatory Party may initiate the proceedings established in this Chapter, giving notice of this to the Signatory Party that requested the initiation of the investigation.
Article 39.
Procedures for control and verification of origin under this Chapter may be applied even to goods released for consumption.
Article 40.
Within sixty (60) days from the receipt of the communication, under Article 34 or in the third paragraph of Article 37 of this Chapter, if the measure is considered inconsistent, the exporting Signatory Party, may submit a query to the Joint Committee of the Agreement stating the technical and legal reasons which indicate that the measure taken by the Competent Authorities of the importing Signatory Party does not conform to this Chapter, and/or seek a formal statement to determine whether the good in question complies with the provisions of this Chapter.
Article 41.
The deadlines laid down in this Chapter shall be calculated based on consecutive days beginning on the day following the facts or events to which they relate.
Section V. REVIEW AND AMENDMENT
Article 42.
1. The Joint Committee will review the implementation of this Chapter and, if appropriate, shall propose to the Parties amendments to it.
2. Such review may be initiated jointly with the negotiation to deepen or extend tariff preferences of this Agreement, or at any time, at the request of a Party, to address specific difficulties faced by exporters with the existing origin criteria or any other item of tariff classification.
Chapter III. PREFERENTIAL SAFEGUARDS
Section I. DEFINITIONS
Article 1.
For the purposes of this Chapter:
1. "Competent Investigating Authority" Means:
a) in the case of Egypt, the Trade Agreements Sector of the Ministry of Trade and Industry or its successor in Egypt:
b) in the case of MERCOSUR, Ministerio de Industria y Turismo or its successor in Argentina; Secretaria de Comércio Exterior do Ministério do Desenvolvimento, Industria e Comércio Exterior or its successor in Brazil; Ministerio de Industria y Comercio or its successor in Paraguay; and Asesoria de Politica Comercial del Ministerio de Economia y Finanzas or its successor in Uruguay,
2. "Serious injury" shall be understood to mean the significant overall impairment in the position of a domestic industry.
3. "Threat of serious injury" shall be understood to mean the serious injury that is clearly imminent, based on facts and not merely on allegation, conjecture or remote possibility.
4. "Domestic industry" shall be understood to mean the producers as a whole of the like or directly competitive goods, operating in the territory of the Party or Signatory Parties concerned, or when it is not possible, those whose collective output of the like or directly competitive goods constitutes a major proportion of the total production of such goods.
Section II. CONDITIONS FOR APPLICATION OF PREFERENTIAL SAFEGUARD MEASURES
Article 2.
1. Preferential safeguard measures may be applied under the conditions established in this Chapter, when the imports of a good under preferential terms have increased in such quantities, absolute or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to the domestic industry of the importing Party or Signatory Parties concerned.
2. Preferential safeguard measure shall be applied only to the extent necessary to prevent or remedy serious injury.
Article 3.
Preferential safeguard measures shall not be applied after four (4) years from the date of the finalization of the tariff elimination or reduction program applicable to the goods unless otherwise agreed by the Parties. After this period, the Joint Committee shall evaluate whether or not to continue the preferential safeguard measures mechanism referred to in this Chapter.
Article 4.
MERCOSUR may adopt preferential safeguard measures:
a) as a sole entity, as far as all requirements to determine the existence of serious injury or threat thereof, being caused by the imports of goods as a result of the reduction or elimination of a customs duty provided for in this Agreement, have been fulfilled on the basis of conditions applied to MERCOSUR as a whole; or
b) on behalf of one or more of its Member States, in which case the requirements for the determination of the existence of serious injury or threat thereof, being caused by the imports as a result of the reduction or elimination of a customs duty provided for in this Agreement, shall be based on the conditions prevailing in the affected Member State(s) and the measure shall be limited to that Member State(s).
2. Egypt may apply preferential safeguard measures to the imports from MERCOSUR or MERCOSUR Member States where such serious injury or threat thereof is being caused by the imports of a good as a result of the reduction or elimination of a customs duty provided for in this Agreement.
3. The Parties may apply preferential safeguard measures only to the imports from a Party or Signatory Party where such serious injury or threat thereof is being caused by the imports of a good under preferential terms from such Party or Signatory Party.
Article 5.
Preferential safeguard measures adopted under this Chapter shall consist of temporary suspension or reduction of the tariff preferences established in this Agreement for the good subject to the measure. Any increase in the rate of customs duty on the good subject to preferential safeguard measures shall not exceed the applied MFN customs duty or base duty, whichever being the lowest.
Article 6.
1. The Party that applies a preferential safeguard measure should establish an import quota within which the good concerned would benefit from the agreed preference established in this Agreement. This import quota shall not be lower than the average imports of the good concerned during the representative period over which serious injury was determined. A higher level of quota may be applied if it is duly justified,
2. In case a quota is not established, the preferential safeguard measure shall only consist of a reduction of the preference, which shall not be greater than 50% of the tariff preference established in this Agreement.
Article 7.
1. The total period of application of a preferential safeguard measure shall not exceed two (2) years.
2. In exceptional circumstances the Joint Committee will authorize the application of a preferential safeguard measure for a good that has already been subject to a preferential safeguard measure for an additional period of two (2) years or less.
3. Upon termination of the preferential safeguard measure, the preference shall be the one that would be applied to the good in the absence of the measure, according to the tariff elimination schedule.
Article 8.
The investigation to determine serious injury or threat thereof as a result of increased imports of a good under preferential terms shall take into consideration all relevant factors of an objective and quantifiable nature having a bearing on the situation of the domestic industry affected, and in particular, the following:
a) the amount and rate of the increase in preferential imports of the good concerned in absolute and relative terms;
b) the share of the internal market taken by increased preferential imports;
c) the consequent impact on the domestic industry of the like or directly competitive goods, based on factors, including: changes in the level of sales, production, productivity, capacity utilisation, profits and losses and employment; and,
d) the existence of a causal link between the increased imports of the good under preferential terms and the serious injury or threat thereof to the domestic industry.
Section II. INVESTIGATION AND TRANSPARENCY PROCEDURES
Article 9.
1. Each Party or Signatory Party shall establish or maintain published procedures for the application of preferential safeguard measures, in compliance with the provisions established in this Chapter. Investigations shall include reasonable public notice to all interested parties and public hearings or other appropriate means in which importers, exporters and other interested parties could present evidence and their views, including the opportunity to respond to the presentations of other parties, The competent investigating authorities shall publish a report setting forth their findings and reasoned conclusions reached on all pertinent issues of fact and law.
2. Investigating authorities shall take due account of any difficulties experienced by interested parties in submitting information in compliance with Article 28 of Chapter I.
Article 10.
1. Any information which is by nature confidential or which is provided on a confidential basis shall, upon good cause being shown, be treated as such by the competent investigating authorities. Such information shall not be disclosed without permission of the party submitting it. Parties providing confidential information may be requested to furnish non-confidential summaries thereof or, if such parties indicate that such information may not be summarised, the reasons why a summary cannot be provided.
2. [f the competent investigating authorities find that a request for confidentiality is not warranted and if the party concerned is either unwilling to make the information public or to authorize its disclosure in generalized or summary form, the authorities may disregard such information unless it can be demonstrated to their satisfaction from appropriate sources that the information is correct.
Article 11.
The period between the date of publication of the decision to initiate the investigation and the publication of the final decision shall not exceed eight (8) months. No preferential safeguard measure will be applied in case the timelinc is not observed by the competent investigating authorities.
Section IV. NOTIFICATIONS AND CONSULTATIONS
Article 12.
1. The importing Party or Signatory Party shaU notify the exporting Party or Signatory Party of:
a) the decision to initiate the investigation under this Chapter;
b) the decision to apply or not a preferential safeguard measure.
Article 13.
A Party proposing to apply a preferential safeguard measure shall provide adequate opportunity for prior consultations to the exporting Party or Signatory Party concerned. With this objective, the Party shaJI notify the other Party or Signatory Party when finding evidence of serious injury or threat thereof caused by increased preferential imports that would lead to a decision to apply a preferential safeguard measure. The notification shalJ be provided no less than thirty (30) days before the measure comes into force. The notifications shall include
a) information concerning the existence of serious injury or threat of serious injury to the domestic industry caused by the increase in preferential imports;
b) complete description of the imported good subject to the measure;
c) description of the measure proposed; and,
d) the date of entry into force of the measure and its duration.
Article 14.
A Party may not apply a preferential safeguard measure under this Chapter without having afforded an opportunity for consultations, the objective of which shall be the exchange of opinions, aimed at reaching a mutually satisfactory solution. If no satisfactory solution is reached within 30 days of the notification under Article 13 of this Chapter. the Party may apply the preferential safeguard measure.
Section V. LEVEL OF CONCESSIONS
Article 15.
1. A Party or Signatory Party proposing to apply a preferential safeguard measure shall endeavour to maintain a substantially equivalent level of concessions to that existing under this Agreement between it and the Party or Signatory Party which would be affected by such a measure. To achieve this objective, the Parties or Signatory Parties concerned may agree on any adequate means of trade compensation for the adverse effects of the measure on trade.
2. If no agreement is reached within 30 days in the consultations set forth under Article 14 of this Chapter, the Parties or Signatory Parties concerned shall be free to, no later than ninety (90) days after the measure has been applied, suspend the application of substantially equivalent concessions or other obligations under the Agreement, to the trade of the Party or Signatory Party applying the measure.
Chapter IV. DISPUTE SETTLEMENT
Section I. APPLICATION OF THE CHAPTER
Article 1.
The provisions of this Chapter shall apply with respect to any disputes concerning the interpretation, application of and/or non-compliance with the provisions of the Free Trade Agreement between MERCOSUR and the Arab Republic of Egypt and the decisions of the Joint Committee taken pursuant to this Agreement.
Article 2.
1. Any dispute regarding matters arising under the provisions of this Agreement and the decisions of the Joint Committee taken pursuant to this Agreement, on issues regulated by the WTO Agreement, may be settled in accordance with this Chapter or with the Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO (hereinafter referred to as "the DSU") at the complaining party's election.
2. Where a dispute settlement proceeding has been initiated with regard to a particular measure, either under this Chapter or under the DSU, a dispute settlement proceeding regarding the same measure shall not be initiated in the other forum.
3. For the purposes of this Article, a dispute settlement proceeding shall be considered to have been initiated under this Chapter when the complaining party requests consultations under Article 4 of this Chapter.
4. For the purposes of this Article, a dispute settlement proceeding shall be considered to have been initiated under the DSU when the complaining party requests consultations under Article 4 of the DSU.
5. Notwithstanding the above, disputes that may arise in connection with anti-dumping, countervailing measures and global safeguards shall be settled exclusively in accordance with the DSU.
6. Notwithstanding the above, disputes regarding matters for which the Agreement only makes reference to the rights and obligations of the parties under the WTO Agreement, shall be settled exclusively in accordance with the DSU.
Article 3.
1. For the purpose of this Chapter, the "Contracting Parties" are MERCOSUR and Egypt. The "Signatory Parties" are the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Oriental Republic of Uruguay, Member States of MERCOSUR, and Egypt.
2. MERCOSUR or its Member States may initiate a dispute settlement proceeding against Egypt as:
a) MERCOSUR as a Contracting Party;
b) one MERCOSUR Member State as a Signatory Party; or
c) two or more Member States of MERCOSUR as Signatory Parties, in which event, they shall present jointly only one case on the same subject matter.
3. Egypt may initiate a dispute settlement proceeding either against MERCOSUR as a Contracting Party or one of its Member States as a Signatory Party.
4, For the purpose of this Chapter, both Contracting Parties as well as one or more Member States of MERCOSUR and Egypt may be parties to a dispute and shall hereinafter be referred to as "party", or "parties".
Section II. CONSULTATIONS
Article 4.
The parties shall endeavor to resolve any disputes regarding the interpretation, application of and/or non-compliance with the provisions referred to in Article 1 of this Chapter by entering into consultations in good faith with the aim of reaching a prompt, equitable and mutually agreed solution.