3. The customs authority of the importing Party may undertake a verification process by means of a written request for:
(a) information from the importer of the good;
(b) information from the producer or exporter of the good where the information obtained under subparagraph (a) is not sufficient to make a determination; or
(c) the customs authority of the exporting Party to access information, which may include the customs authority of the exporting Party undertaking a visit to the premises of the producer or exporter of the good to review relevant information and the production process where the information obtained under subparagraphs (a) and (b) is not sufficient to make a determination.
4. If the customs authority of the importing Party decides to conduct a verification, it shall accept written information directly from the importer, exporter, or producer.
5. Where a claim for preferential treatment is based on importer's knowledge that the good is originating, the customs authority of the importing Party shall only request the information on which the importer based their knowledge that the good was originating.
6. Where a claim for preferential treatment is based on a declaration of origin completed by the producer or exporter, the customs authority of the importing Party requesting information pursuant to subparagraphs 3(a) or 3(b) from the importer, producer, or exporter of the good shall only request the following:
(a) where the origin criterion is based on:
(i) the good having been wholly obtained pursuant to Article 3.2 (Origin Criteria), the applicable subparagraph of Article 3.3 (Wholly Obtained Goods), and address of production;
(ii) the good having been produced entirely pursuant to Article 3.2 (Origin Criteria), information on the origin of the materials and the address of production;
(iii) a change in tariff classification, a list of all the non-originating materials including their tariff classification (in two, four, or six-digit format) depending on the relevant product specific tule of origin in Annex 3A (Product Specific Rules of Origin);
(iv) a value method, the value of the final product as well as the value of all non-originating materials used in the production where the build-down method is used or the value of all originating materials used in the production where the build-up method is used, as well as information on how such values are determined; or
(v) aproduction process, a specific description of that process:
(A) where the provisions of Article 3.9 (Tolerance) have been relied on based on weight, the net weight of the final product as well as the weight of the relevant non- originating materials used in the final product, which have not undergone the applicable change in tariff classification; or
(B) informationrelating to the compliance with the provisions on non-alteration referred to in Article 3.10 (Non-Alteration).
Actions of the customs authority of the exporting Party
7. Following a request under subparagraph 3(c), the customs authority of the exporting Party may, in accordance with the laws and regulations of the exporting Party:
(a) request information or records from the exporter or producer to verify the originating status of the goods; and
(b) visit the premises of the exporter, producer, or a supplier to review the records referred to in paragraph 1 of Article 3.25 (Record Keeping Requirements), observe the facilities used in the production of the good, or otherwise gather evidence to verify the originating status of the goods.
8. As soon as possible, and in any event within 10 months of receipt of the written request under subparagraph 3(c), the customs authority of the exporting Party will provide the customs authority of the importing Party with the following:
(a) the requested documentation, where available;
(b) the description of the good that is subject to examination, including its tariff classification in two, four, or six-digit format, depending on the origin criterion;
(c) where appropriate, a description of the production process;
(d) information on the manner in which the examination of the good was conducted; and
(e) supporting documentation, where appropriate. When providing requested information, the customs authority of the exporting Party, importer, exporter, or producermay include any other information they consider relevant for the purpose of verification.
9. When providing requested information, the customs authority of the exporting Party, importer, exporter, or producer may include any other information they consider relevant for the purpose of verification.
10. The customs authority of the exporting Party shall provide the customs authority of the importing Party with written acknowledgement of receipt of a request for information. The acknowledgement of receipt shall be provided as soon as possible, but no later than 45 days after the date of receipt of the request made under subparagraph 3(c).
11. The customs authority of the importing Party shall:
(a) make a determination following a verification as expeditiously as possible and no later than 90 days after it receives the information necessary to make the determination, and no later than 365 days after the first request for information or other action under paragraph 1;
(b) notwithstanding subparagraph (a), ifpermitted by its laws and regulations, a Party may extend the 365 day period in exceptional cases, such as where the technical information concerned is very complex;
(c) provide the importer with a written determination of whether the good is originating that includes an explanation for the determination and, where appropriate, supporting documentation;
(d) provide the importer, exporter, or producer that provided information during the verification or certified that the good was originating, with the results of the verification and the reasons for that result; and
(e) advise of the review and appeal rights associated with the decision.
12. During verification, the importing Party shall allow the release of the goods concerned, subject to payment of any duties or provision ofa guarantee in the form of a surety, deposit, or other appropriate instrument as provided for in its laws and regulations.
13. If, as a result of the verification, the importing Party determines that the good is an originating good, it shall grant preferential treatment to the good and refund any excess duties paid or release any guarantee provided, unless the guarantee also covers other obligations which have not been discharged. If, as a result of the verification, the importing Party determines that the good is not an originating good, it may deny preferential treatment to the good.
14. If, pursuant to a verification under this Article, the customs authority of the importing Party has not received sufficient information to determine that a good qualifies as originating, or that the importer, exporter, or producer has otherwise failed to comply with a requirement of this Chapter, it may deny preferential treatment to the good.
Article 3.27. Confidentiality
The provisions contained in Article 4.21 (Confidentiality - Customs Procedures and Trade Facilitation) also apply to this Chapter.
Article 3.28. Documentation Issued In a Non-Party
The customs authority of the importing Party shall not reject a claim for preferential tariff treatment for the sole reason that any supporting documents which are required pursuant to paragraph 4 of Article 3.19 (Origin Declaration) were issued in a non-party.
Article 3.29. Transitional Provisions for Goods In Transit
A Party shall grant preferential tariff treatment to an originating good, if on the date of entry into force of this Agreement, the good:
(a) was being transported to that Party in accordance with Article 3.10 (Non-Alteration); or
(b) had not been imported into that Party,
and if a valid claim under Article 3.18 (Claims for Preferential Tariff Treatment) for preferential tariff treatment is made within 180 days of the date of entry into force of this Agreement for that Party.
Chapter 4. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 4.1. Definitions
For the purposes of this Chapter: "arrival" means:
(a) with respect to New Zealand, arrival at a Customs port, Customs airport, or at an alternative place of arrival authorised by Customs;
(b) for the United Kingdom, arrival at the point at which the goods are presented to customs;
"customs law" means any law administered, applied, or enforced by the customs authority of a Party governing the import, export, and transit of goods as well as other customs procedures, including measures of prohibition, restriction, and control of a Party in their respective territories;
"customs procedure" means the measures applied by the customs authority of a Party to goods and to the means of transport that are subject to customs laws;
"expedited shipments" means goods imported by or through an operator of a consignment service for the expeditious cross-border movement of goods which assumes liability to the customs authority for those goods or goods imported by traders and operators fulfilling other criteria specified in the Parties' laws and regulations; and
"WCO" means the World Customs Organization.
Article 4.2. Scope
1. This Chapter shall apply to customs laws and procedures applied to goods traded between the Parties.
2. Each Party shall use its available resources in an appropriate way to implement this Chapter.
Article 4.3. Customs Procedures and Trade Facilitation
1. Each Party shall ensure that its customs procedures and customs laws are applied in a manner that is predictable, consistent, transparent, and non- discriminatory.
2. The Parties affirm their rights and obligations under the Agreement on Trade Facilitation done at Geneva on 27 November 2014.
3. The customs procedures of each Party shall conform, where possible, to international standards and recommended practices established by the WCO and under other relevant international agreements to which the Parties are party.
4. Each Party shall adopt and maintain simplified customs procedures to ensure the efficient and expeditious clearance of goods.
5. Each Party shall review their customs procedures with a view to their simplification in order to facilitate trade including through the rapid release and clearance of goods. Each Party shall work towards further simplification of data and documentation required by their customs authority.
6. The Parties shall seek to reinforce their cooperation to promote trade facilitation while ensuring effective customs control.
Article 4.4. Customs Cooperation
1. Without prejudice to other forms of cooperation provided for in this Agreement, the customs authorities of the Parties shall cooperate, including by exchanging information, and provide mutual administrative assistance in the matters referred to in this Chapter in accordance with the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of New Zealand on Cooperation and Mutual Administrative Assistance in Customs Matters done at London on 1 August 2019.
2. The customs authorities of the Parties shall enhance cooperation on the matters referred to in this Chapter with a view to further developing trade facilitation while ensuring compliance with their respective customs laws, regulations, and procedural requirements, and improving supply chain security, in the following areas:
(a) the operation of the provisions of this Chapter governing importations or exportations;
(b) the harmonisation of data requirements for customs purposes, in line with applicable international standards such as the WCO standards;
(c) further development of the customs-related aspects of securing and facilitating the international trade supply chain in accordance with the SAFE Framework;
(d) the application and operation of the Customs Valuation Agreement;
(e) improvement of their risk management techniques, including sharing best practices and, if appropriate, risk information and control results;
(f) cooperation in international organisations, such as the WTO and the WCO, on matters of common interest, including tariff classification, customs valuation and origin, with a view to establishing, if possible, common positions; and
(g) other matters as the Parties may decide.
3. The customs authorities of the Parties shall ensure the exchange of information necessary for the purposes of paragraph 2.
Article 4.5. Transparency and Publication
1. Each Party shall promptly publish, in a non-discriminatory and easily accessible manner including online, its laws, regulations, and general administrative procedures and guidelines, related to customs. This includes:
(a) importation, exportation, and transit procedures (including port, airport, and other entry point procedures), and required forms and documents;
(b) applied rates of duties and taxes of any kind imposed on or in connection with importation or exportation;
(c) fees and charges imposed by or for governmental agencies on or in connection with importation, exportation, or transit;
(d) rules for the classification or valuation of products for customs purposes;
(e) laws, regulations, and administrative rulings of general application relating to rules of origin;
(f) import, export, or transit restrictions or prohibitions;
(g) penalty provisions against breaches of import, export, or transit formalities;
(h) appeal procedures;
(i) agreements or parts thereof with any country or countries relating to importation, exportation, or transit;
(j) procedures relating to the administration of tariff quotas; and
(k) hours of operation and general operating procedures for customs offices at ports and border crossing points.
2. Each Party shall ensure that new or amended laws and regulations of general application related to customs matters are published, or information on them is otherwise made publicly available, as early as possible before their entry into force, in order to enable traders and other interested parties to become acquainted with them.
3. Changes to duty rates or tariff rates, measures that have a relieving effect, measures the effectiveness of which would be undermined as a result of compliance with paragraphs 1 and 2, measures applied in urgent circumstances, or minor changes to domestic law and legal systems are each excluded from paragraphs 1 and 2.
4. Each Party shall establish or maintain one or more enquiry points to address enquiries of interested parties or persons concerning customs matters and shall make information concerning the procedures for making such enquiries publicly available online. The enquiry points shall answer enquiries and provide the forms and documents within a reasonable time period set by each Party, which may vary depending on the nature or complexity of the request.
5. Each Party shall, as appropriate, provide for regular consultations between border agencies and traders or other stakeholders within its territory.
Article 4.6. Data and Documentation
1. With a view to simplifying and minimising the complexity of import, export, and transit formalities and documentation requirements, each Party shall ensure, as appropriate, that such formalities, data, and documentation requirements:
(a) are adopted or applied with a view to a rapid release of goods, in order to facilitate trade; and
(b) are adopted or applied in a manner that aims to reduce the time and cost of compliance for traders and operators.
2. Each Party shall:
(a) make electronic systems accessible to customs users;
(b) allow a customs declaration to be submitted in electronic format; (c) employ electronic or automated risk management systems; and
(d) permit the electronic payment of duties, taxes, fees, and charges collected by customs and incurred upon importation and exportation.
3. The Parties shall endeavour to cooperate on the development of interoperable electronic systems, in order to facilitate trade between the Parties.
Article 4.7. Simplified Customs Procedures
1. Each Party shall adopt or maintain measures allowing traders or operators fulfilling criteria specified in its laws and regulations to benefit from further simplification of customs procedures.
2. Each Party shall endeavour to ensure that these simplified procedures include:
(a) customs declarations containing a reduced set of data or supporting documents, including for the movement of low-value consignments;
(b) deferred payment of customs duties and taxes until after the release of those imported goods;
(c) aggregated customs declarations for the payment of customs duties and taxes that may cover multiple imports and enable payment at monthly or quarterly intervals; and
(d) use of a guarantee with a reduced amount or a waiver from use of a guarantee.
3. The Parties agree to cooperate on and consider further measures to reduce the administrative burdens for economic operators in relation to import and export.
Article 4.8. Expedited Shipments
1. Each Party shall adopt or maintain expedited customs procedures for expedited shipments while maintaining appropriate customs control and selection. These procedures shall:
(a) provide for the submission and processing of information in advance of the arrival of a shipment to expedite its release;
(b) allow for a single submission of information covering all goods contained in a shipment through, if possible, electronic means; (1)
(c) to the extent possible, provide for the release of certain goods with a minimum of documentation or a reduced set of data;
(d) provide, in normal circumstances, for an expedited shipment to be released within six hours of arrival, provided: (2)
(i) all information and documentation necessary to release the goods have been submitted on or prior to arrival; and
(ii) the goods are not subject to physical examination or inspection;
(e) apply to shipments of any weight or value recognising that a Party may require additional entry procedures as a condition for release, including declarations and supporting documentation and payment of customs duties; and
(f) provide that, under normal circumstances, no customs duties will be assessed on expedited shipments valued at or below a fixed amount set under a Party’s law.
2. If a Party does not provide the treatment in subparagraphs 1(a) to 1(f) to all shipments, that Party shall provide a separate and expedited customs procedure that provides that treatment for expedited shipments.
ensure that the amount of any security is no greater than that required to ensure that obligations arising from the importation of the goods will be fulfilled;
ensure that any security is discharged as soon as possible after its customs authority is satisfied that the obligations arising from the importation of the goods have been fulfilled; and
allow importers to provide security using an appropriate instrument, including, in appropriate cases where an importer frequently enters goods, instruments covering multiple entries.
Nothing in this Article requires a Party to release a good if other regulatory requirements for release have not been met.
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Article 4.10. Perishable Goods
For the purposes of this Article, perishable goods are goods that rapidly decay due to their natural characteristics, in particular in the absence of appropriate storage conditions.
With a view to preventing avoidable loss or deterioration of perishable goods, each Party shall:
(a) _ provide, in normal circumstances, for perishable goods to be released within six hours of arrival, provided:?
@ all information and documentation necessary to release the goods have been submitted on or prior to arrival; and
(ii) the goods are not to be subject to physical examination or inspection; and
(b) release perishable goods outside the business hours of its customs authority in exceptional circumstances, if it would be appropriate to do so.
Each Party shall give appropriate priority to perishable goods when scheduling any examinations that may be required.
Each Party shall either arrange, or allow an importer to arrange, for the proper storage of perishable goods pending their release. Each Party may require that any storage facilities arranged by the importer be approved or designated by its relevant authorities. Each Party shall, if practicable and consistent with its laws and regulations, on request of the importer, provide for the release to take place at those storage facilities.
Article 4.11. Risk Management
Each Party shall adopt or maintain a risk management system which shall include the use of electronic data processing techniques for customs control that enables its customs authority to focus its inspection activities on high- tisk consignments and expedite the release of low-risk consignments.
Each Party shall design and apply risk management in a manner as to avoid arbitrary or unjustifiable discrimination, or disguised restrictions to international trade.
3 Nothing in this subparagraph requires a Party to release a good if other regulatory requirements for release have not been met.
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Each Party shall base risk management on assessment of risk through appropriate selectivity criteria.
Each Party may also select, on a random basis, consignments for inspection activities referred to in paragraph 1 as part of its risk management.
In order to facilitate trade, each Party shall periodically review and update, as appropriate, the risk management system specified in paragraph 1.
Article 4.12. Advance Rulings
Each Party shall issue through its customs authority an advance ruling to an applicant that has submitted a written request with respect to:
(a) tariff classification;
(b) whether a good is originating in accordance with Chapter 3 (Rules of Origin and Origin Procedures); and