Article 27. Committee on Trade In Goods
1. For the purposes of the effective implementation and operation of this Chapter and Chapter 4, the Parties hereby establish a Committee on Trade in Goods (hereinafter referred to in this Article as "Committee").
2. The functions of the Committee shall be: (a) reviewing and monitoring:
(i) the implementation and operation of this Chapter and Chapter 4;
(ii) any amendments to Annexes 2 and 4, proposed by either Party; and
(iii) the Operational Procedures referred to in Article 52;
(b) discussing any issues related to this Chapter and Chapter 4;
(c) reporting the findings and the outcome of discussions of the Committee to the Commission; and
(d) carrying out other functions as may be delegated by the Commission in accordance with Article 190.
3. The Committee shall be composed of government officials of the Parties.
4. The Committee shall meet at such venues and times as may be agreed by the Parties.
5. A Working Group on Fish and Fishery Products shall be established under the Committee. Details of the Working Group shall be set forth in a separate agreement to be concluded between the Governments of the Parties for the implementation of this Agreement (hereinafter referred to as "the Implementing Agreement").
Note: In the case of Chile, the Implementing Agreement shall be implemented as an Executive Agreement (Acuerdo de Ejecución) in accordance with the Political Constitution of the Republic of Chile (Constitución Politica de la República de Chile).
Article 28. Definitions
For the purposes of this Chapter:
(a) the term "Agreement on Agriculture" means the Agreement on Agriculture in Annex 1A to the WTO Agreement ;
(b) the term "Agreement on Safeguards" means the Agreement on Safeguards in Annex 1A to the WTO Agreement ;
(c) the term "bilateral safeguard measure" means a bilateral safeguard measure provided for in paragraph 2 of Article 20;
(d) the term "customs duty" means any customs or import duty and a charge of any kind, including any form of surtax or surcharge, imposed in connection with the importation of a good, but does not include any:
(i) charge equivalent to an internal tax imposed consistently with the provisions of paragraph 2 of Article III of the GATT 1994, in respect of the like goods or, directly competitive or substitutable goods of the Party or in respect of goods from which the imported goods have been manufactured or produced in whole or in part;
(ii) anti-dumping or countervailing duty applied pursuant to a Partyâs law and applied consistently with the provisions of Article VI of the GATT 1994, the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, and the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement; or
(iii) fees or other charges commensurate with the cost of services rendered;
(e) the term “customs value of goods” means the value of goods for the purposes of levying ad valorem customs duties on imported goods;
(f) the term “domestic industry” means the producers as a whole of the like or directly competitive goods operating in a Party, or those whose collective output of the like or directly competitive goods constitutes a major proportion of the total domestic production of those goods;
(g) the term “export subsidies” means export subsidies described in subparagraph (e) of Article 1 of the Agreement on Agriculture;
(h) the term “provisional bilateral safeguard measure” means a provisional bilateral safeguard measure provided for in paragraph 1 of Article 25;
(i) the term “serious injury” means a significant overall impairment in the position of a domestic industry; and
(j) the term “threat of serious injury” means serious injury that, on the basis of facts and not merely on allegation, conjecture or remote possibility, is clearly imminent.
Chapter 4. Rules of Origin
Section 1. Rules of Origin
Article 29. Originating Goods
Except as otherwise provided for in this Chapter, a shall qualify as an originating good of a Party where:
(a) the good is wholly obtained or produced entirely in the Party, as defined in paragraph 2;
(b) the good is produced entirely in the Party exclusively from originating materials of the Party;
(c) the good is produced entirely in the Party using non-originating materials, provided that the good satisfies the product specific rules set out in Annex 2, as well as all other applicable requirements of this Chapter; or
(d) except for a good provided for in Chapters 61 through 63 of the Harmonized System, the good is produced entirely in the Party, but one or more of the non-originating materials that are used in the production of the good do not undergo an applicable change in tariff classification because:
(i) the good is imported into the Party in an unassembled or disassembled form but is classified as an assembled good pursuant to Rule 2(a) of the General Rules for the Interpretation of the Harmonized System; or
(ii) the heading for the good provides for and specifically describes both the good itself and its parts and is not further subdivided into subheadings, or the subheading for the good provides for and specifically describes both the good itself and its parts,
provided that the qualifying value content of the good, determined in accordance with Article 30, is not less than 45 percent when the method referred to in subparagraph 1 (a) of Article 30 is used or 30 percent when the method referred to in subparagraph 1(b) of Article 30 is used, unless otherwise provided for in Annex 2, and that the good satisfies all other applicable requirements of this Chapter.
2. For the purposes of subparagraph 1(a), the following goods shall be considered as being wholly obtained or produced entirely in a Party:
(a) mineral goods extracted in the Party;
(b) vegetable goods harvested in the Party;
(c) live animals born and raised in the Party;
(d) goods obtained from hunting, trapping or fishing in the Party;
(e) goods obtained from live animals in the Party;
(f) fish, shellfish and other marine species taken from the sea beyond the territorial seas of the Parties by vessels:
(i) which are registered or recorded in the Party;
(ii) which sail under the flag of the Party;
(iii) which are owned to an extent of at least 50 percent by nationals of the Party, or by an enterprise with its head office in the Party, of which the representatives, chairman of the board of directors, and the majority of the members of such board are nationals of the Party, and of which at least 50 percent of the equity interest is owned by nationals or enterprises of the Party;
(iv) of which the master and officers are all nationals of the Party; and
(v) of which at least 75 percent of the crew are nationals of the Party;
Note 1: Without prejudice to the rights and obligations of the Parties under international law, including those under the United Nations Convention on the Law of the Sea, subparagraph (f) shall not apply to fish, shellfish and other marine species taken from the exclusive economic zone of the other Party by the vessels referred to in that subparagraph.
Note 2: The requirements of subparagraphs (£) (iii) through (v) shall not apply to vessels registered or recorded in Chile prior to June 30, 1991, provided for in Transitional Article 10 of the consolidated text of the Law 18.892, General Law on Fisheries and Aquiculture (Articulo 10 Transitorio del texto refundido, coordinado y sistematizado de la Ley 18.892, Ley General de Pesca y Acuicultura), and their successor vessels registered or recorded in accordance with that Law and other relevant provisions of Chilean law.
(g) goods produced from the goods referred to in subparagraph (f) on board factory ships:
(i) which are registered or recorded in the Party;
(ii) which sail under the flag of the Party;
(iii) which are owned to an extent of at least 50 percent by nationals of the Party, or by an enterprise with its head office in the Party, of which the representatives, chairman of the board of directors, and the majority of the members of such board are nationals of the Party, and of which at least 50 percent of the equity interest is owned by nationals or enterprises of the Party;
(iv) of which the master and officers are all nationals of the Party; and
(v) of which at least 75 percent of the crew are nationals of the Party;
Note: The requirements of subparagraphs (g) (iii) through (v) shall not apply to factory ships registered or recorded in Chile prior to June 30, 1991, provided for in Transitional Article 10 of the consolidated text of the Law 18.892, General Law on Fisheries and Aquiculture (Articulo 10 Transitorio del texto refundido, coordinado y sistematizado de la Ley 18.892, Ley General de Pesca y Acuicultura), and their successor vessels registered or recorded in accordance with that Law and other relevant provisions of Chilean law.
(h) goods taken by the Party or a natural person or enterprise of the Party from the seabed or subsoil beneath the seabed outside the territorial sea of the Party, provided that the Party has rights to exploit such seabed or subsoil;
(i) waste and scrap derived from:
(i) production in the Party; or
(ii) used goods collected in the Party, provided that such goods are fit only for the recovery of raw materials; and
(j) goods produced in the Party exclusively from the goods referred to in subparagraphs (a) through (i), or from their derivatives, at any stage of production.
3. For the purposes of subparagraph 1(c), the product specific rules set out in Annex 2 requiring that the materials used undergo a change in tariff classification or a specific manufacturing or processing operation shall apply only to non-originating materials.
Article 30. Qualifying Value Content
1. For the purposes of subparagraph 1(c) of Article 29, the qualifying value content of a good shall be calculated on the basis of one or the other of the following methods:
(a) Method based on value of non-originating materials ("Build-down method")
QVC = TV - VNM / TV x 100
(b) Method based on value of originating materials ("Build-up method" )
QVC = VOM / TV x 100
Where:
QVC is the qualifying value content of the good, expressed as a percentage;
TV is the transaction value of the good adjusted to F.O.B. basis, except as provided for in paragraph 2;
VNM is the value of non-originating materials used by the producer in the production of the good determined pursuant to Article 31; and
VOM is the value of originating materials used by the producer in the production of the good determined pursuant to Article 31.
2. In the event that there is no transaction value or the transaction value of the good is unacceptable under Article 1 of the Agreement on Customs Valuation, the value of the good shall be determined in accordance with Articles 2 through 7 of the Agreement on Customs Valuation.
Article 31. Value of Materials
1. The value of a material:
(a) shall be the transaction value of the material; or
(b) in the event that there is no transaction value or the transaction value of the material is unacceptable under Article 1 of the Agreement on Customs Valuation, shall be determined in accordance with Articles 2 through 7 of the Agreement on Customs Valuation.
2. The value of a material referred to in paragraph 1:
(a) shall include freight, insurance, packing and all other costs incurred in transporting the material to the importation port in the Party where the producer of the good is located; and
(b) may include the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of reusable scrap or by-product.
3. The value of a non-originating material shall not include, where the producer acquires the material in the Party where the producer is located, freight, insurance, packing and all other costs incurred in transporting the material from the warehouse of the supplier of the material to the place where the producer is located; as well as any other known and ascertainable cost incurred in the Party.
Article 32. De Minimis
Non-originating materials used in the production of a good that do not undergo an applicable change in tariff classification shall be disregarded in determining whether the good qualifies as an originating good of a Party, provided that the totality of such materials does not exceed specific percentages in value, weight or volume of the good as set out in Annex 2.
Article 33. Accumulation
For the purposes of determining whether a good qualifies as an originating good of a Party, an originating good of the other Party which is used as a material in the production of the good in the former Party may be considered as an originating material of the former Party.
Article 34. Fungible Goods and Materials
1. For the purposes of determining whether a good qualifies as an originating good of a Party, where fungible materials consisting of originating materials of the Party and non-originating materials that are commingled in an inventory are used in the production of the good, the origin of the materials may be determined pursuant to an inventory management method recognized in the Generally Accepted Accounting Principles in the Party.
2. Where fungible goods consisting of originating goods of a Party and non-originating goods are commingled in an inventory and, prior to exportation do not undergo any production process or any operation in the Party where they were commingled other than unloading, reloading and any other operation to preserve them in good condition, the origin of the good may be determined pursuant to an inventory management method recognized in the Generally Accepted Accounting Principles in the Party.
Article 35. Sets, Kits or Composite Goods
1. Sets, kits and composite goods classified pursuant to Rule 3 of the General Rules for the Interpretation of the Harmonized System shall qualify as originating goods of the exporting Party, where every good contained in the sets, kits or composite goods satisfies the applicable rule of origin for each of them under this Chapter.
2. Paragraph 1 shall prevail over the product specific rules set out in Annex 2.
Article 36. Indirect Materials
Indirect materials shall be, without regard to where they are produced, considered to be originating materials of the Party where the good is produced.
Article 37. Accessories, Spare Parts and Tools
Accessories, spare parts or tools delivered with a good that form part of the good's standard accessories, spare parts or tools, shall be disregarded in determining whether the good qualifies as an originating good of a Party, provided that:
(a) the accessories, spare parts or tools are not invoiced separately from the good, without regard of whether they are separately described in the invoice; and
(b) the quantities and value of the accessories, spare parts or tools are customary for the good.
Article 38. Packaging Materials and Containers for Retail Sale
Packaging materials and containers in which a good is packaged for retail sale shall, if classified with the good pursuant to Rule 5 of the General Rules for the Interpretation of the Harmonized System, be disregarded in determining whether the good qualifies as an originating good of a Party.
Article 39. Packing Materials and Containers for Shipment
Packing materials and containers for shipment shall be disregarded in determining whether the good qualifies as an originating good of a Party.
Article 40. Non-Qualifying Operations
1. A good shall not be considered to be an originating good of the exporting Party merely by reason of:
(a) operations to ensure the preservation of products in good condition during transport and storage;
(b) changes of packaging and breaking up and assembly of packages;
(c) disassembly;
(d) placing in bottles, cases, boxes and other simple packaging operations;
(e) collection of parts and components classified as a good pursuant to Rule 2(a) of the General Rules for the Interpretation of the Harmonized System;
(f) mere making-up of sets of articles; or
(g) any combination of operations referred to in subparagraphs (a) through (f).
2. Paragraph 1 shall prevail over the product specific rules set out in Annex 2.
Article 41. Consignment Criteria
1, An originating good of a Party shall be deemed to meet the consignment criteria when it is:
(a) transported directly from the Party to the other Party; or
(b) transported through one or more non-Parties for the purpose of transit or temporary storage in warehouses in such non-Parties, provided that it does not undergo operations other than unloading, reloading and any other operation to preserve it in good condition.
2. If an originating good of a Party does not meet the consignment criteria referred to in paragraph 1, that good shall not be considered as an originating good of the Party.
Article 42. Exhibitions
Notwithstanding Article 41, an originating good of a Party imported into the other Party after an exhibition in a non-Party shall continue to qualify as an originating good of the former Party when it:
(a) remained under the control of the customs authority of the non-Party while it was in the non-Party; and
(b) was transported:
(i) directly to and from the non-Party; or
(ii) through other non-Parties for the purpose of transit or temporary storage in warehouses in such other non-Parties, provided that it did not undergo operations other than unloading, reloading and any other operation to preserve it in good condition.
Section 2. Certificate of Origin and Related Procedures
Article 43. Claim for Preferential Tariff Treatment
1. The customs authority of the importing Party shall require a certificate of origin for an originating good of the exporting Party from importers who claim the preferential tariff treatment for the good.
2. Notwithstanding paragraph 1, the customs authority of the importing Party shall not require a certificate of origin from importers for:
(a) an importation of originating goods of the exporting Party whose total customs value does not exceed 1000 United States of America dollars or its equivalent amount in the Party's currency, or such higher amount as it may establish; or
(b) an importation of originating goods of the exporting Party, for which the customs authority of the importing Party has waived the requirement for a certificate of origin,
provided that the importation does not form part of one or more importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the certification requirements of this Article and Article 46.
3. In the case where an originating good of the exporting Party is imported after an exhibition in a non-Party, the customs authority of the importing Party may require importers, who claim the preferential tariff treatment for the good, to submit:
(a) a certificate or any other information given by the customs authority of that non-Party or other relevant entities, which evidences that the good meets the requirements of subparagraph (a) of Article 42; and
(b) (i) a copy of through bill of lading; or
(ii) if the good was transported through other non-Parties, a certificate or any other information given by the customs authorities of such other non-Parties or other relevant entities, which evidences that the good has not undergone operations other than unloading, reloading and any other operation to preserve it in good condition in those other non-Parties.
4. Where an originating good of the exporting Party is imported through one or more non-Parties except for the case referred to in paragraph 3, the customs authority of the importing Party may require importers, who claim the preferential tariff treatment for the good, to submit:
(a) a copy of through bill of lading; or
(b) a certificate or any other information given by the customs authorities of such non-Parties or other relevant entities, which evidences that the good has not undergone operations other than unloading, reloading and any other operation to preserve it in good condition in those non- Parties.
Article 44. Certificate of Origin
1. A certificate of origin shall be issued by the competent authority specified in Annex 3 (hereinafter referred to in this Chapter as "competent authority") of the exporting Party on request having been made in writing by the exporter.
2. For the purposes of this Article, the competent authority of the exporting Party may designate public or private entities or bodies to be responsible for the issuance of certificate of origin in accordance with the applicable laws and regulations of the exporting Party.
3. Where the competent authority of the exporting Party designates public or private entities or bodies to carry out the issuance of certificate of origin, the exporting Party shall notify in writing the other Party of its designees.
4. For the purposes of this Chapter, upon the entry into force of this Agreement, a format of certificate of origin shall be established in the English language in the Operational Procedures referred to in Article 52. A certificate of origin shall include minimum data specified in Annex 4.
5. A certificate of origin shall be completed in the English language.
6. An issued certificate of origin shall be applicable to an importation of originating goods of the exporting Party into the importing Party and be valid for one year from the date of issuance.
7. Where the exporter of a good is not the producer of the good in the exporting Party, the exporter may request a certificate of origin on the basis of:
(a) a declaration provided by the exporter to the competent authority of the exporting Party or its designees based on the information provided by the producer of the good to that exporter; or