9. Each Party shall provide that the certificate of origin for a good imported into its territory may be completed in English, French or Spanish. If the certificate of origin is not in a language of the importing Party, the importing Party may require the importer to submit, on request, a translation into that language.
Article 4.3. Basis of a Certificate of Origin
1. Each Party shall provide that if a producer certifies the origin of a good, the certificate of origin is completed on the basis of the producer having information that demonstrates that the good is originating.
2. Each Party shall provide that if the exporter is not the producer of the good, a certificate of origin may be completed by the exporter of the good on the basis of:
(a) the exporter having information that demonstrates that the good is originating; or
(b) reasonable reliance on the producer’s written representation, such as in a certificate of origin, that the good is originating.
3. Each Party shall provide that a certificate of origin may be completed by the importer of the good on the basis of the importer having information that demonstrates that the good is originating.
4. For greater certainty, paragraphs 1 and 2 do not allow a Party to require an exporter or producer to complete a certificate of origin or provide a certificate of origin or a written representation to another person.
Article 4.4. Discrepancies and Minor Errors
1. A Party shall not reject a certificate of origin due to minor errors or discrepancies in the certificate of origin if these errors or discrepancies do not create doubts concerning the correctness of the import documentation.
2. Each Party shall provide that if the customs administration of the importing Party determines that a certificate is illegible, defective on its face, or has not been completed in accordance with this Chapter, the customs administration shall grant to the importer a period of not less than fifteen working days from the date of notification from the customs administration to provide it with a copy of the corrected certificate of origin.
Article 4.5. Waiver of Certificate of Origin
A Party shall not require a certificate of origin if:
(a) the value of the importation does not exceed US $1000 or the equivalent amount in the importing Party’s currency or any higher amount as the importing Party may establish; or
(b) it is an importation of a good for which the importing Party has waived the requirement for a certificate of origin,
provided that the importation does not form part of a series of importations carried out or planned for the purposes of evading compliance with the importing Party’s laws, regulations or procedures governing claims for preferential tariff treatment under this Agreement.
Article 4.6. Obligations Relating to Importation
1. Except as otherwise provided in this Chapter, each Party shall provide that, for the purposes of claiming preferential tariff treatment, the importer shall:
(a) make a written declaration in the import document, in accordance with the importing Party’s laws and regulations, that the good qualifies as an originating good;
(b) have a valid certificate of origin in its possession at the time the declaration referred to in subparagraph (a) is made; and
(c) provide a copy of the certificate of origin to the customs administration of the importing Party if requested by that Party.
2. Each Party shall provide that, if the importer has reason to believe that the certificate of origin is based on incorrect information that could affect the accuracy or validity of the certificate of origin, the importer shall promptly correct the importation document and pay any duty and, if applicable, penalties owed.
3. An importing Party shall not subject an importer to a penalty for making an invalid claim for preferential tariff treatment if the importer, on becoming aware that the claim is not valid and prior to discovery of the error by that Party, voluntarily corrects the claim and pays any applicable duty in accordance with the Party’s laws and regulations.
4. A Party may require an importer to demonstrate that a good for which the importer claims preferential tariff treatment was shipped in accordance with Article 3.14 (Rules of Origin – Transit and Transhipment) by providing:
(a) transportation documents, including the multimodal or combined transportation documents, such as bills of lading or waybills, indicating the shipping route and all points of shipment and transhipment prior to the importation of the good; and
(b) if the good is shipped through or transhipped outside the territories of the Parties, relevant documents, such as in the case of storage, storage documents, or a copy of the customs control documents, demonstrating that the good remained under customs control while outside the territories of the Parties.
Article 4.7. Obligations Relating to Exportation
1. Each Party shall provide that an exporter or a producer in its territory that completes a certificate of origin shall submit a copy of that certificate of origin to the competent authority of the exporting Party, on its request.
2. Each Party shall provide that if an exporter or a producer in its territory has provided a certificate of origin and has reason to believe that it contains or is based on incorrect information, the exporter or producer shall promptly notify, in writing, every person and the Party to whom the exporter or producer provided the certificate of origin of any change that could affect the accuracy or validity of the certificate of origin.
3. A Party shall not impose a penalty on an exporter or a producer in its territory that voluntarily provides written notification pursuant to paragraph 2 with respect to a certificate of origin.
4. Each Party shall allow a certificate of origin to be submitted electronically from the exporter or producer in the territory of a Party to an importer in the territory of the other Party.
5. A Party may apply measures as the circumstances may warrant when an exporter or a producer in its territory fails to comply with any requirement of this Chapter.
Article 4.8. Record Keeping Requirements
1. Each Party shall provide that an importer claiming preferential tariff treatment for a good imported into its territory shall maintain, for a period of no less than five years from the date of importation of the good:
(a) the documentation related to the importation, including the certificate of origin that served as the basis for the claim; and
(b) all records necessary to demonstrate that the good is originating and qualified for preferential tariff treatment, if the claim was based on a certificate of origin completed by the importer.
2. Each Party shall provide that an exporter or a producer in its territory that completes a certificate of origin shall maintain in its territory for a period of no less than five years from the date the certificate of origin was completed, all records necessary to demonstrate that a good for which the exporter or producer provided a certificate of origin is originating, including records associated with:
(a) the purchase of, cost of, value of, shipping of, and payment for, the good or material;
(b) the purchase of, cost of, value of, shipping of, and payment for all materials, including indirect materials, used in the production of the good or material; and
(c) the production of the good in the form in which the good is exported.
3. Each Party shall provide that an importer, exporter or producer in its territory may choose to maintain the records or documentation specified in paragraphs 1 and 2, in accordance with that Party’s laws, regulations or procedures, in any medium, including electronic, provided that the records or documentation can be promptly retrieved and printed.
Article 4.9. Verification of Origin
1. For the purposes of determining whether a good imported into its territory is originating, the importing Party may, through its customs administration, conduct a verification of any claim for preferential tariff treatment by one or more of the following means:
(a) a written request or questionnaire seeking information from the importer of the good;
(b) a written request or questionnaire seeking information from the exporter or producer of the good;
(c) a verification visit to the premises of the exporter or producer of the good in order to request information, including documentation, and to observe the production process and the related facilities; or
(d) any other procedures as the Parties may decide.
2. If the importing Party conducts a verification, it shall accept information directly from the importer, exporter or producer.
3. If a claim for preferential tariff treatment is based on a certificate of origin completed by the exporter or producer and, in response to a written request or questionnaire seeking information by the importing Party under paragraph 1(a), the importer does not provide information to the importing Party or the information provided is not sufficient to support the claim for preferential tariff treatment, the importing Party shall request information from the exporter or producer under paragraph 1(b) or 1(c) before it may deny the claim for preferential tariff treatment. The importing Party shall complete the verification, including any additional request to the exporter or producer under paragraph 1(b) or 1(c), within the time provided in paragraph 6(e). (1)
4. A written request or questionnaire seeking information or a request for a verification visit under paragraphs 1(a) through 1(c) shall:
(a) include the identity of the customs administration issuing the request;
(b) state the reason for the request, including the specific issue the requesting Party seeks to resolve with the verification;
(c) include sufficient information to identify the good that is being verified and, if possible, a copy of the certificate of origin;
(d) in the case of a verification visit, request the written consent of the exporter or producer whose premises are going to be visited, and indicate:
(i) the legal authority for the visit;
(ii) the proposed date and location for the visit;
(iii) the specific purpose of the visit; and
(iv) the names and titles of the officials performing the visit.
5. If the importing Party has initiated a verification in accordance with paragraph 1(b) or 1(c), it shall inform the importer, only for the purposes of the importer’s knowledge, of the initiation of the verification.
6. For a verification under paragraphs 1(a) through 1(c), the importing Party shall:
(a) ensure that the written request or questionnaire seeking information, or documentation to be reviewed during a verification visit, is limited to information and documentation to determine whether the good is originating;
(b) describe the information or documentation in sufficient detail to allow the importer, exporter or producer to identify the information and documentation necessary to respond;
(c) allow the importer, exporter, or producer at least 30 days from the date of receipt of the written request or questionnaire seeking information under paragraph 1(a) or 1(b) to respond;
(d) allow the exporter or producer 30 days from the date of receipt of the written request for a verification visit under paragraph 1(c) to consent or refuse the request; and
(e) make a determination of origin following a verification as expeditiously as possible and no later than 90 days after the date it receives the information necessary to make the determination, including, if applicable, any information received under paragraph 13, and no later than 365 days after the date that the first request for information or the questionnaire was sent to the importer, exporter, or producer, or other action under paragraph 1 was taken. If permitted by its laws and regulations, a Party may extend the 365-day period in exceptional cases, such as where the technical information provided by the importer, exporter or producer in accordance with paragraph 1 is very complex.
7. If the importing Party initiates a verification under paragraph 1(c), it shall, at the time of making the request for the visit under paragraph 4, provide a copy of the request to the competent authority of the Party where the exporter or producer is located.
8. Each Party shall provide that, when its competent authority receives a copy of the request in accordance with paragraph 7, the competent authority may, within 15 days of receipt of the copy of the request, postpone the proposed verification visit for a period not exceeding 60 days from the proposed date of the visit, or for a longer period as the Parties may decide.
9. Each Party shall provide that when the exporter or producer receives a request for a verification visit under paragraph 4, the exporter or producer may, on a single occasion and within 15 days of the date of receipt of the request, request the postponement of the proposed verification visit for a period not exceeding 60 days from the proposed date of the visit.
10. A Party shall not deny preferential tariff treatment to a good based only on the postponement of a verification visit under paragraphs 8 or 9.
11. Each Party shall allow an exporter or a producer whose good is the subject of a verification visit by the other Party to designate two observers to be present during the visit, (2) provided that:
(a) the observers do not participate in a manner other than as observers;
(b) the failure of the exporter or producer to designate observers does not result in the postponement of the visit; and
(c) the exporter or producer of the good identifies to the customs administration conducting the verification visit any observers designated to be present during the visit.
12. The importing Party shall provide the importer, exporter or producer that certified that the good was originating and is the subject of a verification with a written determination of origin that includes the findings of facts and the legal basis for the determination. If the importer is not the certifier, the importing Party shall also provide that written determination to the importer.
13. Prior to issuing a written determination of origin under paragraph 12, if the importing Party intends to deny preferential tariff treatment, the importing Party shall provide the importer, exporter or producer who is subject to the verification with a notice of intent to deny that includes when the denial would be effective and a period of at least 30 days for the submission of additional information related to the originating status of the good.
14. During verification, the importing Party shall allow the release of the good, subject to payment of duties or provision of security as provided for under its laws and regulations. If, as a result of the verification, the importing Party determines that the good is an originating good, it shall grant preferential tariff treatment to the good and refund any excess duties paid or release any security provided, unless the security also covers other obligations.
15. If verifications of identical goods by a Party indicate a pattern of conduct by an importer, exporter, or producer of false or unsupported representations relevant to a claim that a good imported into its territory qualifies as an originating good, the Party may withhold preferential tariff treatment to identical goods imported, exported or produced by that person until that person demonstrates that the identical goods qualify as originating.
16. If, in conducting a verification of origin of a good imported into its territory under this Article, a Party conducts a verification of origin of a material that is used in the production of the good, the Party shall conduct the verification of origin of the material in accordance with the procedures in paragraphs 1, 4, 6(a) through (d), 7 through 9, 11 and 19.
17. When a Party conducts a verification of a material under paragraph 16 the Party may consider the material to be non-originating in determining whether the good is an originating good if the producer or supplier of that material does not allow the Party access to information required to make a determination of whether the material is an originating material by the following or other means:
(a) denial of access to its records;
(b) failure to respond to a written request or questionnaire seeking information under paragraphs 1(a) and 1(b); or
(c) failure to provide its written consent within 30 days of the date of receipt of a request for a verification visit under paragraph 1(c).
18. For the purposes of a verification under this Article it is sufficient for a Party to rely on the contact information of an exporter, producer or importer in a Party provided in a certificate of origin.
19. For the purposes of this Article, all communications to the exporter or producer and to the competent authority of the exporting Party shall be sent by any means that can produce a confirmation of receipt. The specified time periods shall begin from the date of receipt.
Article 4.10. Determinations on Claims for Preferential Tariff Treatment
1. Except as otherwise provided in paragraph 2, each Party shall grant a claim for preferential tariff treatment made under this Chapter for a good imported into its territory on or after the date of entry into force of this Agreement.
2. The importing Party may deny a claim for preferential tariff treatment if:
(a) it determines that the good does not qualify for preferential tariff treatment;
(b) pursuant to a verification under Article 4.9, it has not received sufficient information to determine that the good qualifies as originating;
(c) the importer, exporter or producer fails to respond to a written request or questionnaire seeking information in accordance with Article 4.9;
(d) after receipt of a request for a verification visit, the exporter or producer fails to provide its written consent in accordance with Article 4.9;
(e) the importer, exporter or producer fails to comply with the requirements of this Chapter; or
(f) the importer, exporter or producer of the good that is required to maintain records or documentation in accordance with this Chapter:
(i) fails to maintain those records or documentation; or
(ii) denies access, if requested by a Party, to those records or documentation.
Article 4.11. Refunds
1. Each Party shall provide that an importer may apply for preferential tariff treatment and a refund of any excess duties paid for a good if the importer did not make a claim for preferential tariff treatment at the time of importation, provided that the good would have qualified for preferential tariff treatment when it was imported into the territory of the Party.
2. The importing Party may, for the purposes of paragraph 1, require that the importer:
(a) make a claim for preferential tariff treatment;
(b) provide a statement that the good was originating at the time of importation;
(c) provide a copy of the certificate of origin; or
(d) provide other documentation relating to the importation of the good as the importing Party may require,
no later than one year after the date of importation or a longer period if specified in the importing Party’s law.
Article 4.12. Penalties
Each Party shall adopt or maintain criminal, civil or administrative penalties for violations of its laws and regulations related to this Chapter.
Article 4.13. Advance Rulings Relating to Origin
1. Each Party shall, through its customs administration, on request, provide for the expeditious issuance of a written advance ruling, prior to the importation of a good into its territory, to an importer in its territory or an exporter or producer in the territory of the other Party, concerning whether a good qualifies as an originating good under Chapter 3 (Rules of Origin).
2. Each Party shall adopt or maintain uniform procedures for the issuance of advance rulings, including a detailed description of the information required to process a request for a ruling in accordance with that Party’s laws, regulations and procedures.
3. Each Party shall make the following information available on one or more free, publicly accessible websites, and shall ensure that the information is updated as necessary:
(a) the uniform procedures for the issuance of advance rulings as set out in paragraph 2; and
(b) newly issued advance rulings pursuant to this Article and Article 5.5 (Customs and Trade Facilitation – Advance Rulings) in accordance with its laws, regulations, or procedures, which shall be subject to the consent of the person to whom the advance ruling was issued.
4. Each Party shall allow a person to request an advance ruling through electronic means, such as through e-mail or other electronic system.
5. Each Party shall provide that its customs administration:
(a) may, at any time during the course of processing a request for an advance ruling, request supplemental information from the person requesting the advance ruling or a sample of the good for which the advance ruling was requested;
(b) in issuing an advance ruling, take into account the facts and circumstances provided by the person requesting that ruling;
(c) issue the ruling as expeditiously as possible and in no case later than 120 days after it has obtained all necessary information from the person requesting an advance ruling; and
(d) provide, to the person requesting the advance ruling, a full explanation of the reasons for the ruling.
6. A Party may decline, or in the case of Canada may alternately postpone, the issuance of an advance ruling if the facts and circumstances forming the basis of the advance ruling are the subject of a verification of origin or an administrative, quasi-judicial, or judicial review or appeal.
7. A Party that declines, or in the case of Canada alternately postpones, the issuance of an advance ruling shall promptly notify, in writing, the person requesting the ruling, setting out the relevant facts and circumstances and the basis for its decision.
8. Subject to paragraph 9, each Party shall apply an advance ruling to importations into its territory of the good for which the ruling was requested on the date of its issuance or at a later date if specified in the ruling.
9. Each Party shall provide to a person requesting an advance ruling the same treatment as it provided to any other person to whom it issued an advance ruling, provided that the facts and circumstances are identical in all material respects.
10. After issuing an advance ruling, the Party may modify or revoke the advance ruling if:
(a) there is a change in the facts or circumstances on which the ruling was based;
(b) the ruling was based on inaccurate or false information;
(c) the ruling was based on an error; or
(d) there is a change in the law.
11. A Party shall not apply retroactively a modification or revocation to the detriment of the person requesting the advance ruling unless that person has not acted in accordance with its terms and conditions or the ruling was based on inaccurate or false information provided by the requester.
12. Each Party shall provide that, unless it retroactively applies a modification or revocation as described in paragraph 11, any modification or revocation of an advance ruling shall be effective on the date on which the modification or revocation is issued, or on a later date as may be specified therein.
13. The Party issuing the advance ruling may postpone the effective date of a modification or revocation for a period not exceeding 90 days.
14. Each Party shall provide that an advance ruling takes effect on the date that it is issued or on a later date specified in the ruling, and an advance ruling remains in effect and is honoured unless it has been modified or revoked pursuant to paragraph 10.
15. A Party shall not impose a fee or charge for the issuance or processing of an advance ruling.
16. Each Party shall promote the use of the other Party’s advance rulings by encouraging its traders to request advance rulings from the other Party.
17. A Party shall not require, as a condition for requesting an advance ruling, a person of the other Party to establish or maintain a contractual or other relationship with a person located in the territory of the importing Party.
Article 4.14. Review and Appeal
Each Party shall grant substantially the same rights of review and appeal of determinations of origin and advance rulings by its customs administration related to origin under this Agreement as it provides to importers in its territory, to an exporter or producer located in the territory of the other Party:
(a) that completes a certificate of origin for a good that has been the subject of a determination of origin under this Agreement; or
(b) that has been issued an origin advance ruling under Article 4.13 or any other advance ruling under Article 5.5 (Customs and Trade Facilitation – Advance Rulings).
Article 4.15. Confidentiality
1. Each Party shall maintain the confidentiality of the information collected for the purposes of this Chapter by protecting that information from disclosure that could prejudice the competitive position of the trader to whom this information relates.
2. A Party may use or disclose information referred to in paragraph 1 for the purposes of administering or enforcing determinations of origin and other customs matters or as otherwise provided under the Party’s law.
3. For greater certainty, a Party may allow information referred to in paragraph 1 to be used in any administrative, judicial or quasi-judicial proceeding related to compliance with customs related laws and regulations implementing Chapter 3 (Rules of Origin) and this Chapter. A Party shall, to the extent required under its laws, regulations or procedures, notify the person or Party who provided the information in advance of that use.
Article 4.16. Cooperation
1. With respect to goods considered originating in accordance with Article 3.5 (Rules of Origin – Accumulation), the Parties may cooperate with a non-party in developing customs procedures based on the principles of this Chapter.
2. The Parties shall cooperate, to the extent practicable and subject to available resources, in organizing training programs on trade, customs and any other issues related to this Chapter as the Parties may decide, such as simulated audit environment exercises and training on the implementation of the certificate of origin by the exporter, producer and importer, for the government officials who participate directly in trade and customs procedures.
Article 4.17. Committee on Rules of Origin and Origin Procedures
1. The Parties hereby establish a Committee on Rules of Origin and Origin Procedures (“Committee”), composed of government representatives of each Party, to consider any matters arising under Chapter 3 (Rules of Origin) and this Chapter.
2. The Committee shall consult regularly to ensure that Chapter 3 (Rules of Origin) and this Chapter are administered effectively, uniformly and consistently with the spirit and objectives of this Agreement, and shall cooperate in the administration of Chapter 3 (Rules of Origin) and this Chapter.
3. The Committee shall consult to discuss possible amendments or modifications to Chapter 3 (Rules of Origin) or this Chapter, taking into account developments in technology, production processes or other related matters.