9. Before carrying out an origin verification visit pursuant to paragraph 2(c), the competent authority of the importing Party shall be required to notify in writing its intention to carry out the visit to the exporter or producer, to the competent authority of the Party in whose territory the visit is to take place and, if the latter so requests, to the embassy of that Party in the territory of the importing Party. The competent authority of the importing Party shall request the written consent of the exporter or producer to be visited.
10. The notification referred to in paragraph 9 shall contain:
(a) identification of the competent authority making the notification;
(b) the name of the exporter or producer to be visited;
(c) the date and place of the proposed verification of origin visit;
(d) the purpose and scope of the proposed verification of origin visit, making specific mention of the good or goods subject to verification of origin to which the certificate or certificates of origin refer;
(e) the names and positions of the officials who will carry out the verification of origin visit; and
(f) the legal basis for the verification of origin visit.
11. Any modification to the information referred to in paragraph 10(e) shall be notified in writing to the exporter or producer and to the competent authority of the exporting Party prior to the verification of origin visit. Any modification to the information referred to in subparagraphs (a), (b), (c), (d) and (f) of paragraph 10 shall be notified under the terms of paragraph 9.
12. If within 15 days following the date of receipt of the notification of the proposed verification of origin visit pursuant to paragraph 9, the exporter or producer does not give its written consent to the verification of origin visit, the importing Party may deny preferential tariff treatment to the good or goods that would have been the subject of the verification of origin visit, by means of a written resolution addressed to the importer, exporter or producer, which shall include the findings of fact and the legal basis for the resolution.
13. Each Party shall provide that, where its exporter or producer receives a notification pursuant to paragraph 9, within 15 days from the date of receipt of the notification, it may request the competent authority of the importing Party to postpone the date of the proposed origin verification visit for a period not exceeding 30 days from the date on which the visit was proposed or for such longer period as the Parties may agree.
14. A Party may not deny preferential tariff treatment solely on the basis of the postponement of the verification of origin visit pursuant to paragraph 13.
15. Each Party shall allow the exporter or producer, whose good or goods are the subject of a verification of origin visit, to designate 2 observers to be present during the visit, provided that the observers intervene only in that capacity. Failure to designate observers by the exporter or producer shall not have the effect of postponing the visit.
16. The competent authority of the importing Party shall draw up a record of the visit containing the facts found by it. Said report may be signed by the producer or exporter and the observers designated by them.
17. In the event that the exporter or producer fails to provide the records and documents referred to in Article 5.6(b) or when the competent authority of the importing Party determines, based on the information obtained as a result of a verification of origin, that a good or goods subject to the verification of origin does not qualify as originating, such authority shall send to the producer or exporter, a duly substantiated and reasoned letter, explaining the intention to deny preferential tariff treatment with respect to such good or goods, and shall grant a period of 30 days from the date of receipt of such letter, to provide the documents or records it deems necessary.
18. Within 120 days following the date on which the 30-day period referred to in paragraph 17 ends, the competent authority shall issue a written determination of origin resolution to the importer, exporter or producer, whose merchandise or goods have been the subject of the verification of origin, determining whether or not the merchandise qualifies as originating, which shall include the findings of fact and the legal basis for the determination, a copy of which shall be sent to the importer. For the issuance of such determination, the authority shall take into consideration the documents or records provided by the exporter or producer within the 30-day period referred to in paragraph 17.
19. Each Party shall provide that, where its competent authority determines that a good imported into its territory does not qualify as originating according to the tariff classification or value applied by that Party to one or more materials used in the production of the good, and this differs from the tariff classification or value applied to the materials by the Party from whose territory the good was exported, the determination of that Party shall be effective until it notifies in writing the importer of the good and the person who has completed and signed the certificate of origin covering the good.
20. The resolution referred to in paragraph 19 shall not apply to imports made prior to the date on which such resolution takes effect, when:
(a) the competent authority of the importing Party has issued an advance ruling in accordance with Article 5.11; and
(b) the advance criterion referred to in subparagraph (a) is prior to the initiation of the verification of origin.
21. When the verification of origin carried out by a Party establishes that the exporter or producer has certified or declared more than once, falsely or unfoundedly, that a good qualifies as originating, the importing Party shall suspend preferential tariff treatment to identical goods exported or produced by that person, until that person proves that it complies with the provisions of Chapter IV (Rules of Origin).
Article 5.8. Consularization
When conducting a verification of origin pursuant to Article 5.7, the Parties shall not require consular invoices or consular visas for the certificate of origin and the records and documents set out in Article 5.6 relating to the origin of the good that is the subject of the verification of origin.
Article 5.9. Confidentiality
1. Each Party shall, in accordance with the provisions of its domestic law, maintain the confidentiality of information obtained in accordance with the provisions of this Chapter and shall protect it from any disclosure that could prejudice the person providing the information.
2. Confidential information obtained in accordance with the provisions of this Chapter may only be disclosed to the authorities responsible for the administration and enforcement of rulings on determination of origin and customs and tax matters.
Article 5.10. Sanctions
Each Party shall establish or maintain criminal, civil or administrative penalties for violations of its laws and regulations relating to the provisions of this Chapter.
Article 5.11. Anticipated Criteria
1. Each Party shall provide, through its competent authority, for the expeditious issuance of written advance rulings prior to the importation of a good into its territory. The advance rulings shall be issued by the competent authority of the territory of the importing Party, at the request of its importer or the exporter or producer in the territory of another Party, based on the facts and circumstances stated by them, with respect to the origin of the goods.
2. The anticipated criteria do not constitute necessary and indispensable requirements for the importation of goods under preferential tariff treatment.
3. The anticipated criteria will deal with:
(a) whether the merchandise qualifies as originating, in accordance with the provisions of Chapter IV (Rules of Origin);
(b) whether the non-originating materials used in the production of a good comply with the applicable change in classification tariff schedule set out in Annex 4 .3 (Specific Rules of Origin); and Specific Rules of Origin);
(c) whether the good meets the regional value content requirement set forth in Chapter IV (Rules of Origin);
(d) whether the method applied by the exporter or producer in the territory of another Party, in accordance with the principles of the Customs Valuation Agreement for the calculation of the transaction value of the good or materials used in the production of a good for which an advance ruling is requested, is adequate to determine whether the good meets the regional value content requirement under Chapter IV (Rules of Origin);
(e) whether the country of origin marking made or proposed for a good satisfies the provisions of Article 3.15 (Country of Origin Marking); and
(f) such other matters as the Parties may agree.
4. Each Party shall adopt or maintain procedures for the issuance of advance criteria upon official publication, including at least:
(a) information reasonably required to process the request;
(b) the power of its competent authority to request, at any time, additional information from the person requesting the advance ruling during the process of evaluating the request;
(c) a period of 120 days for its competent authority to issue the advance ruling, once it has obtained all the necessary information from the person requesting it; and
(d) the obligation to explain in a complete, well-founded and motivated manner, the reasons for the anticipated criterion.
5. Each Party shall apply the advance criteria to imports into its territory as of the date of issuance of the criterion, or such later date as may be specified therein, unless the advance criterion is modified or revoked in accordance with paragraph 7.
6. Each Party shall accord to any person requesting an advance ruling the same treatment, and the same interpretation and application of the provisions of Chapter IV (Rules of Origin) relating to the determination of origin, as it has accorded to any other person to whom it has issued an advance ruling, when the facts and circumstances are identical in all material respects.
7. The anticipated criterion may be modified or revoked by the competent authority, when:
(a) the anticipated criterion was based on an error:
(i) in fact;
(ii) in the tariff classification of the good or materials subject to the criterion; or
(iii) in the application of the regional value content requirement, in accordance with the provisions of Chapter IV (Rules of Origin);
(b) does not conform to an interpretation agreed between the Parties or a modification with respect to Article 3.15 (Country of Origin Marking) or Chapter IV (Rules of Origin);
(c) the circumstances or facts on which it is based change; (d) is intended to comply with an administrative or judicial decision; or (e) is based on information that is determined to be incorrect or false.
8. Each Party shall provide that any modification or revocation of an advance ruling shall take effect on the date on which it is issued or on a later date specified therein, and may not be applied to imports of a good made prior to those dates, unless the person to whom it is issued has not acted in accordance with its terms and conditions.
9. Notwithstanding paragraph 8, the Party issuing the advance ruling shall postpone the effective date of the modification or revocation for a period of not less than 45 days, when the person to whom the advance ruling was issued has relied on that ruling in good faith.
10. Each Party shall provide that, when examining the regional value content of a good for which an advance ruling has been issued, its competent authority shall assess whether:
(a) the exporter or producer complies with the terms and conditions of the anticipated criterion;
(b) the exporter's or producer's operations are consistent with the circumstances and substantial facts on which such judgment is based; and
(c) the supporting data and calculations used in the application of the criterion or method for calculating the value or assigning the cost are correct in all material respects.
11. Each Party shall provide that, where its competent authority determines that any of the requirements set forth in paragraph 10 have not been met, the competent authority may modify or revoke the advance ruling, as the circumstances warrant.
12. Each Party shall provide that, where an advance ruling is issued to a person who has misrepresented or omitted material circumstances or facts on which the advance ruling is based, or has not acted in accordance with the terms and conditions of the advance ruling, the competent authority issuing the advance ruling may apply the measures set forth in the domestic law of each Party.
13. Each Party shall provide that the holder of an advance ruling may not use it if there is a substantial change in the facts and circumstances on which the competent authority relied to issue it.
14. The validity of an advance ruling shall be subject to the continuing obligation of the holder of the advance ruling to inform the competent authority of any substantial change in the facts or circumstances on which the authority relied to issue that ruling.
Article 5.12. Review and Challenge
1. Each Party shall grant rights of review and challenge of determinations of origin and advance rulings provided for its importers in its domestic legislation, to exporters or producers of another Party who:
(a) complete and sign a certificate or declaration of origin covering a good that has been the subject of a determination of origin pursuant to Article 5.7.18; or
(b) have received an advance criterion in accordance with the provisions of Article 5.11.
2. The rights referred to in paragraph 1 include:
(a) access to at least one instance of administrative review, independent of the official or agency responsible for the determination of origin or advance ruling subject to review, in accordance with the national legislation of each Party; and
(b) access to an instance of judicial review of the decision or decision taken at the last instance of administrative review, in accordance with the national legislation of each Party.
Article 5.13. Invoicing by a Third Country
In the case of imports of originating goods in accordance with the provisions of the Treaty, the invoice presented with the import declaration may be issued by a person located outside the territory of the exporting Party.
Article 5.14. Committee on Origin, Customs Procedures Relating to the Origin of Goods and Trade Facilitation
1. The Parties establish the Committee on Origin, Customs Procedures Relating to the Origin of Goods and Trade Facilitation. The Committee shall be composed of representatives of each of the Parties and shall assist the Administrative Commission in the performance of its functions.
2. The Committee shall be formed by means of an exchange of communications in which its representatives shall be designated.
3. The Committee shall establish, if it deems it appropriate, its rules of procedure.
4. The meetings of the Committee shall be held at the request of the Administrative Commission, the Free Trade Coordinators or at the request of any of the Parties, to deal with matters of interest to them. However, the Committee shall meet in regular session at least once a year, unless otherwise agreed by the Parties, and in special session as often as necessary within 30 days from the date of the request made pursuant to this paragraph.
5. The Committee's resolutions shall be adopted by consensus and reported to the appropriate bodies.
6. The meetings of the Committee may be held in person or by any technological means. When the meetings are face-to-face, they shall be held alternately in the territory of each Party, and it shall be the responsibility of the host Party to organize the meeting.
7. Notwithstanding the provisions of paragraph 1, the Committee may meet to discuss bilateral matters of interest to Mexico and one or more Central American Parties, provided that the other Parties are notified sufficiently in advance so that, if appropriate, they may participate in the meeting. Agreements arising from the meeting shall be adopted by consensus among the Parties involved in the bilateral matter and shall not prejudice or affect the rights of the other Parties.
8. The functions of the Committee shall include:
(a) to monitor the implementation and administration of Chapters IV (Rules of Origin), V (Customs Procedures Relating to the Origin of Goods) and VI (Trade Facilitation), as well as Annex 3.16 (Preferential Tariff Treatment for Goods Classified in Chapter 62 of the Harmonized System Incorporating Materials of the United States of America);
(b) to make appropriate recommendations to the Administrative Commission on matters within its competence;
(c) seek to reach agreements on:
(i) tariff classification and customs valuation issues related to origin determinations;
(ii) adaptation to Annex 4.3 (Specific Rules of Origin) due to amendments to the Harmonized System;
(iii) amendments to the certificate or declaration of origin referred to in Article 5.2; and
(iv) notification by countries of changes in their nomenclature or internal provisions on rules of origin and customs procedures for the handling of the origin of goods affecting this Agreement; and
recommend the adoption of these to the Administrative Commission, when appropriate;
(d) to deal with matters relating to the interpretation, application and administration of Chapters IV (Rules of Origin), V (Customs Procedures Relating to the Origin of Goods) and VI (Trade Facilitation), as well as Annex 3.16 (Preferential Tariff Treatment for Goods Classified in Chapter 62 of the Harmonized System Incorporating Materials of the United States of America); and
(e) any other matter instructed by the Administrative Commission.
9. Any Party that considers that Chapters IV (Rules of Origin), V (Customs Procedures Relating to the Origin of Goods) and VI (Trade Facilitation) and their annexes, as well as Annex 3.16 (Preferential Tariff Treatment for Goods Classified in Chapter 62 of the Harmonized System Incorporating Materials of the United States of America), require modification, due to changes in the development of production processes or other matters, may submit a proposal for modification to the Committee for its consideration and the reasons and studies that support it. The Committee shall submit a report to the Administrative Commission no later than 90 days from the receipt of the proposal.
Article 5.15. Uniform Regulations
1. The Parties shall agree on Uniform Regulations concerning the interpretation, application and administration of this Chapter, Chapter IV (Rules of Origin) and such other chapters of this Agreement as the Parties may agree, which shall be adopted by the Administrative Commission. These Regulations shall be implemented by the Parties through their respective laws and regulations no later than 60 days after the entry into force of this Agreement.
2. Any amendments or additions to the Uniform Regulations shall be adopted by the Administrative Commission in accordance with Article 19.1.3(b) (Administrative Commission), and implemented by each Party no later than 90 days after their adoption, or such other period as the Parties may agree.
Chapter VI. Trade Facilitation
Article 6.1. Definitions
For the purposes of this Chapter, the following definitions shall apply:
WCO: the World Customs Organization; and
Authorized Economic Operators: the actors involved in the logistics chain of international trade of goods, including, among others, manufacturers, importers, exporters, carriers, customs brokers, intermediaries, ports, airports, terminal operators, warehouses and bonded warehouses.
Article 6.2. Publication
1. Each Party shall publish, including via the Internet, its customs legislation, regulations and administrative procedures of a general nature.
2. Each Party shall, to the extent possible, make available to the public, in electronic form, all forms issued by the competent entities of a Party that must be completed for the importation or exportation of a good.
3. Each Party shall, to the extent practicable, make known in advance any regulation of general application in customs matters that it proposes to adopt and give interested persons of the other Party the opportunity to comment prior to its adoption, in accordance with its national legislation.
4. Each Party shall designate or maintain one or more points of contact to respond to inquiries from interested persons on customs matters and shall make available on the Internet information regarding the procedures adopted to formulate and respond to inquiries.
Article 6.3. Dispatch of Goods
1. Each Party shall adopt or maintain simplified customs procedures for the efficient clearance of goods in order to facilitate trade between them.
2. For the purposes of paragraph 1, each Party shall:
(a) allow, as far as possible, goods to be cleared at the point of arrival, without temporary transfer to warehouses or other premises; and
(b) implement procedures that allow goods to be cleared within a period no longer than that required to ensure compliance with its customs legislation and, to the extent possible, to clear goods within 48 hours of arrival, provided that all legal requirements for clearance are met.
Article 6.4. Risk Management
1. Each Party shall endeavor to adopt or maintain risk management systems aimed at facilitating and simplifying the processing and procedures for the clearance of low-risk goods, and orient its inspection and control activities towards the clearance of high-risk goods.
2. Risk management systems shall not be designed or applied to create a disguised restriction on trade between the Parties.
Article 6.5. Automation
1. Customs authorities shall endeavor to use information technology that will expedite the procedures for the release of goods. In choosing the information technology to be used for that purpose, each Party shall:
(a) will make efforts to use international standards;
(b) will make electronic systems accessible to customs users;
(c) provide for the electronic transmission and processing of information and data prior to the arrival of the shipment, in order to allow the clearance of goods upon arrival;
(d) use electronic or automated systems for risk analysis and risk management;
(e) work on the development of compatible electronic systems between the customs authorities of the Parties to facilitate the exchange of international trade data between governments; and
(f) work to develop a set of common data elements and processes in accordance with the Customs Data Model and related WCO recommendations and guidelines.
2. Customs authorities shall, to the extent possible, accept electronically submitted forms, to be provided by an importer or exporter, as the legal equivalent of the printed version.
Article 6.6. Cooperation
1. In order to facilitate the effective operation of this Agreement, each Party shall endeavor to give prior notice to the other Party of any significant modification of its import laws or regulations that may affect the implementation of this Agreement.
2. The Parties shall cooperate to achieve compliance with their respective laws and regulations with respect to:
(a) the implementation and operation of the provisions of this Agreement relating to imports or exports, including applications and procedures of origin;
(b) the implementation and operation of the Customs Valuation Agreement;
(c) restrictions or prohibitions on imports or exports;
(d) training of staff and users, and
(e) such other customs matters as the Parties may agree.
3. When a Party has reasonable suspicions of any unlawful activity related to its import legislation or regulations, it may request the other Party to provide specific information, normally collected in the course of the importation of goods. This is provided that the Party providing the information does not contravene its national legislation.
4. For the purposes of paragraph 3, "reasonable suspicion of any unlawful activity" means a suspicion based on relevant factual information obtained from public or private sources, including one or more of the following:
(a) historical evidence of non-compliance with import legislation or regulations by an importer or exporter;
(b) historical evidence of non-compliance with import legislation or regulations by a manufacturer, producer or other person involved in the movement of goods from the territory of one Party into the territory of the other Party;
(c) historical evidence that any or all persons involved in the movement of goods from the territory of one Party into the territory of the other Party, for a specific product sector, have not complied with the Party's import legislation or regulations; or
(d) other information that the requesting Party and the Party from which the information is requested agree is sufficient in the context of a particular request.
5. A Party's request under paragraph 3 shall be in writing, shall specify the purpose for which the information is required and whether the request is urgent, and shall identify the information requested with sufficient specificity for the other Party to locate and provide it in accordance with its domestic law.
6. The Party from which the information is requested shall, in accordance with its national law and any relevant international agreement to which it is a party, provide a written response containing such information.
7. Each Party shall endeavor to provide the other Party with any additional information that may assist that Party in determining whether imports or exports from or to the territory of that Party comply with the import laws or regulations of the other Party, in particular those relating to the prevention of illicit activities, such as smuggling and the like.
8. In order to facilitate trade between the Parties, each Party shall endeavor to provide the other Party with technical advice and assistance for the purpose of improving risk assessment and risk management techniques, simplifying and expediting customs procedures for the timely and efficient clearance of goods, improving the technical skills of personnel, and increasing the use of technologies that may lead to better compliance with a Party's import legislation or regulations.
9. The Parties shall make efforts to cooperate in:
(a) strengthen each Party's ability to enforce import legislation or regulations;
(b) establishing and maintaining other channels of communication to facilitate the secure and rapid exchange of information; and
(c) improve coordination in import-related matters.
10. The Parties agree to enter into mutual assistance agreements between the customs authorities of Mexico and each Central American Party.
11. The Parties agree to review and update, when necessary, the mutual assistance agreements between the customs authorities of Mexico and each Central American Party.
Article 6.7. Confidentiality
1. Where a Party provides information to the other Party pursuant to this Chapter and designates it as confidential, the other Party shall maintain the confidentiality of such information. The Party providing the information may require a written assurance from the requesting Party that such information will be kept confidential, that it will be used only for the purposes specified in the other Party's request for information, and that it will not be disclosed without specific permission from the Party providing the information.
2. A Party may refuse to provide the information requested by the other Party where the requesting Party does not provide the assurance provided for in paragraph 1, or where the information requested contravenes its domestic law.
3. Each Party shall adopt or maintain procedures to ensure that confidential information provided by a Party, including information the dissemination of which could prejudice the competitive position of the person providing it, is protected from unauthorized disclosure.