(i) the transit entry is justified for geographical reason or by consideration related exclusively to transport requirements;
(ii) the goods have not entered into trade or consumption there; and
(iii) the goods have not undergone any operation there other than unloading and reloading or any other operation to preserve them in good condition.
Article 3.9. De Minimis
A good that does not satisfy a change in tariff classification requirement pursuant to Article 3.4 (Goods Not Wholly Produced or Obtained) of this Chapter will nonetheless be an originating good if:
(a) for a good, other than that provided for in Chapters 50 to 63 of the Harmonised System, the value of all non-originating materials used in the production of the good that did not undergo the required change in tariff classification does not exceed 10 per cent of the FOB value of the good;
(b) for a good provided for in Chapters 50 to 63 of the Harmonised System, the weight of all non-originating materials used in its production that did not undergo the required change in tariff classification does not exceed 10 per cent of the total weight of the good, or the value of all non-originating materials used in the production of the good that did not undergo the required change in tariff classification does not exceed 10 per cent of the FOB value of the good;
and the good meets all other applicable criteria of this Chapter.
Article 3.10. Treatment of Packing Materials, Packages and Containers
1. Packing materials, packages and containers for transportation shall not be taken into account in determining the origin of the goods.
2. Packing materials, packages and containers for use in packaging goods for retail sale:
(a) Where the goods are subject to a regional value content criterion, the value of the packing materials, packages and containers used for packaging goods for retail sale shall be taken into account in origin determination, provided that the packing materials, packages and containers are classified with the goods.
(b) Where the goods are subject to a change in tariff classification criterion, the origin of the packing materials, packages and containers in which goods are packaged for retail sale shall not be taken into account in origin determination, provided that the packing materials, packages and containers are classified with the goods.
Article 3.11. Accessories, Spare Parts and Tools
1. Accessories, spare parts, or tools presented and classified with the good shall be considered as part of the good, provided:
(a) they are invoiced together with the good; and
(b) their quantity and value are commercially customary for the good.
2. Where a good is subject to change in tariff classification criterion set out in Annex 2 (Product Specific Rules of Origin), accessories, spare parts, or tools described in paragraph 1 shall be disregarded when determining the origin of the good.
3. Where a good is subject to a regional value content criterion, the value of the accessories, spare parts or tools described in paragraph 1 shall be taken into account as originating materials or non-originating materials, as the case may be, in calculating the regional value content of the good.
Article 3.12. Neutral Elements
In determining whether a good is an originating good, the origin of the following neutral elements shall be disregarded:
(a) fuel, energy, catalysts and solvents;
(b) equipment, devices and supplies used for testing or inspecting the goods;
(c) gloves, glasses, footwear, clothing, safety equipment and supplies;
(d) tools, dies and moulds;
(e) spare parts and materials used in the maintenance of equipment and buildings;
(f) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; and
(g) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.
Article 3.13. Identical and Interchangeable Materials
Where originating and non-originating identical and interchangeable materials are used in the production of a good, the following methods shall be adopted in determining whether the materials used are originating:
(a) physical separation of the materials; or
(b) an inventory management method recognised in the generally accepted accounting principles of the exporting Party. Once a decision has been taken on the inventory management method, that method shall be used throughout the fiscal year
Article 3.14. Certificate of Origin
Unless otherwise provided, a claim that goods are eligible for preferential tariff treatment shall be supported by a Certificate of Origin issued by an Issuing Authority notified to the other Parties as set out in Annex 3 (Certificate of Origin).
Article 3.15. Consultations, Review and Modification
1.The Parties shall consult regularly to ensure that this Chapter is administered effectively, uniformly and consistently in order to achieve the spirit and objectives of the Agreement.
2.This Chapter may be reviewed and modified as and when necessary, upon request of a Party, and subject to the agreement of the Parties, and may be open to such reviews and modifications as may be agreed upon by the China-Cambodia Free Trade Area Joint Commission.
Article 3.16. Committee on Rules of Origin
1. The Committee on Rules of Origin (hereinafter referred to in this Article as "the Committee") consisting of representatives of both Parties is hereby established under the Joint Commission.
2. The Committee shall deal with the following issues relating to China-Cambodia Free Trade Agreement (CCFTA) Rule of Origin:
(a) monitor and review of measures taken and implementation of commitments;
(b) exchange of information and review developments;
(c) other matters as the Parties may agree;
(d) other matters that are referred to the Committee by the Joint Commission; and
(e) make recommendations and report to the Joint Commission as necessary.
3. The Committee shall be co-chaired by representatives of the competent authorities of Parties. The host Party shall act as the chair. The chairperson shall prepare a provisional agenda for each meeting of the Committee in consultation with the other Party and forward it to the other Party before the meeting.
4. The Committee shall meet as often as necessary upon instruction of the Joint Commission or as agreed by the Parties. The meeting shall take place either in China or Cambodia as mutually agreed by the Parties.
5. The Committee shall prepare a written report on the results of each meeting.
6. The Committee shall designate contact points to ensure the effective and efficient implementation of this Chapter.
Section B.
For the purpose of implementing the Rules of Origin for the CCFTA, the following operational procedures on the issuance and verification of the Certificate of Origin and other related administrative matters shall be followed:
DEFINITIONS
Rule 1
For the purposes of this Section:
"Customs Authority‟ means the competent authority that is responsible under the law of a Party for the Authority of customs laws and regulations (6);
"Exporter‟ means a natural or juridical person located in the territory of a Party from where a product is exported by such a person;
"Importer‟ means a natural or juridical person located in the territory of a Party into where a product is imported by such a person;
"Issuing Authority‟ means any government authority or other entity authorised under the domestic laws, regulations and administrative rules of a Party to issue a Certificate of Origin.
ISSUING AUTHORITIES
Rule 2
The Certificate of Origin shall be issued by the Issuing Authorities of the exporting Party.
Rule 3
(a) Each Party shall inform the other Party of the names and addresses of its respective Issuing Authorities and shall provide specimen signatures (7) and specimen of official seals, and correction stamps, if any, used by its Issuing Authorities.
(b) The above information shall be provided by the contact points electronically at least one month before they take effect. A Party shall promptly inform the other Party of any changes in names, addresses, or official seals in the same manner.
(c) A Party shall promptly provide confirmation to the other Party that it has received the information above and any change thereof.
Rule 4
For the purpose of verifying the conditions for preferential treatment, the Issuing Authorities shall have the right to call for any supporting documentary evidence or to carry out any checks considered appropriate. If such right cannot be obtained through the existing domestic laws, regulations and administrative rules, it shall be inserted as a clause in the application form referred to in Rules 5 and 6 of this Section.
APPLICATIONS
Rule 5
(a) The exporter and/or the manufacturer of the products which qualify for preferential treatment shall apply to the Issuing Authorities requesting the pre-exportation verification of the origin of the products. The result of the verification, subject to review periodically or whenever appropriate, shall be accepted as the supporting evidence in verifying the origin of the said products to be exported thereafter. The pre-verification may not apply to the products which, by their nature, origin can be easily verified.
(b) For locally-procured materials, self-declaration by the final manufacturer exporting under the CCFTA shall be used as the basis when applying for the issuance of the Certificate of Origin.
Rule 6
At the time of carrying out the formalities for exporting the products under preferential treatment, the exporter or his authorised representative shall submit application for the Certificate of Origin together with appropriate supporting documents proving that the products to be exported qualify for the issuance of a Certificate of Origin (8),
PRE-EXPORTATION EXAMINATION
Rule 7
The Issuing Authorities of each Party shall, to the best of their competence and ability, carry out proper examination of each application for the Certificate of Origin to ensure that:
(a) the application and the Certificate of Origin are duly completed in accordance with the requirements as defined in the overleaf notes of the Certificate of Origin, and signed by the authorised signatory;
(b) the origin of the product is in conformity with the Rules of Origin for the CCFTA;
(c) the other statements made in the Certificate of Origin correspond to the supporting documentary evidence submitted;
(d) the description, quantity and weight of products, marks and number of packages, number and kinds of packages, as specified, conform to the products to be exported;
(e) multiple items declared on the same Certificate of Origin shall be allowed subject to the domestic laws, regulations and administrative rules of the importing Party provided each item must qualify separately in its own right.
ISSUANCE OF CERTIFICATE OF ORIGIN
Rule 8
(a) The Certificate of Origin must be on ISO A4 size white paper in conformity to the specimen shown in Annex 3 (Certificate of Origin). It shall be filled out in English and bear an authorised signature and official seal of the issuing authorities of the exporting Party. The signature and seal shall be applied manually or electronically. The Certificate of Origin shall comprise one (1) original and two (2) copies, namely, the duplicate and triplicate copies.
(b) For a Certificate of Origin with multiple pages, the Parties shall use the attached Form shown in Annex 3 (Certificate of Origin). The continuing page(s) shall bear the same signature, seal and reference number as those on the first page.
(c) Each Certificate of Origin shall contain a unique reference number and cover one or more goods under one consignment.
(d) The original copy of the Certificate of Origin shall be forwarded by the exporter to the importer for submission to the Customs Authority at the port or place of importation if the submission of the original copy of the Certificate of Origin is required by Customs Authority of the importing Party. The duplicate copy shall be retained by the Issuing Authority in the exporting Party. The triplicate copy shall be retained by the exporter.
(e) In the case where a Certificate of Origin is rejected by the Customs Authority of the importing Party, the said rejected Certificate of Origin shall be marked accordingly in Box 4.
(f) In the case where a Certificate of Origin is not accepted, as stated in paragraph (e), the Customs Authority of the importing Party shall consider the clarifications made by the Issuing Authorities of the exporting Party and assess whether or not the Certificate of Origin can be accepted for the granting of the preferential treatment. The clarification shall be detailed and exhaustive in addressing the grounds for denial of preferential treatment raised by the importing Party.
Rule 9
To implement the provisions of Article 3.2 (Originating Goods) of this Chapter for the CCFTA, the Certificate of Origin issued by the exporting Party shall indicate the origin criteria or applicable percentage of CCFTA value content in Box 8.
Rule 10
Neither erasures nor superimposition shall be allowed on the Certificate of Origin. Any alteration shall be made by striking out the erroneous materials and making any addition required. Such alterations shall be approved by an official authorised to sign the Certificate of Origin and certified with official seals or correction stamps of the Issuing Authority. Unused spaces shall be crossed out to prevent any subsequent addition.
Rule 11
In principle, a Certificate of Origin shall be issued prior to or at the time of shipment. In exceptional cases where the Certificate of Origin has not been issued by the time of shipment or no later than three (3) days from the date of shipment, at the request of the exporter, the Certificate of Origin shall be issued retroactively in accordance with the domestic laws, regulations and administrative rules of the exporting Party within twelve (12) months from the date of shipment, in which case it is necessary to indicate "ISSUED RETROACTIVELY" in Box 13. In such cases, the importer claiming preferential treatment for the product may, subject to the domestic laws, regulations and administrative rules of the importing Party, provide the Customs Authority of the importing Party with the Certificate of Origin issued retroactively.
Rule 12
In the event of theft, loss or destruction of a Certificate of Origin, the exporter may apply in writing to the Issuing Authority which issued it for a certified true copy of the original and the triplicate to be made on the basis of the export documents in its possession bearing the endorsement of the words "CERTIFIED TRUE COPY" in Box 12. The certified true copy of the original Certificate of Origin shall bear the date of the original Certificate of Origin. The certified true copy of the original Certificate of Origin shall be issued no later than one (1) year from the date of issuance of the original Certificate of Origin and on condition that the exporter provides to the relevant Issuing Authority the triplicate copy of the Certificate of Origin or any proof of the issuance of the original Certificate of Origin.
PRESENTATION
Rule 13
The original Certificate of Origin shall be submitted to the Customs Authority of the importing Party at the time of import declaration for the products concerned claiming for preferential treatment, either manually or electronically, in accordance with the domestic laws, regulations and administrative rules of the importing Party.
Rule 14
The Certificate of Origin shall have the validity period of one (1) year from the date of its issuance. If the submission of the Certificate of Origin is required by the customs authority of the importing party, it must be done during the said period.
Rule 15
(a) In the case of the consignment of products originating in the exporting Party and not exceeding US$ 200.00 FOB, the production of a Certificate of Origin shall be waived and the use of a simplified declaration by the exporter that the products in question originated in the exporting Party shall be accepted. Products sent through the post not exceeding US$200.00 FOB shall also be similarly treated.
(b) Waivers provided for in paragraph (a) shall not be applicable when it is established by the customs authorities of the importing Party that the importation forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the submission of a Certificate of Origin or Certificates of Origin.
Rule 16
(a) Where the CCFTA origin of the product is not in doubt, unsubstantial discrepancies such as tariff classification differences between the statements made in the Certificate of Origin and those made in the documents submitted to the Customs Authority of the importing Party for the purpose of carrying out the formalities for importing the products, shall not, ipso-facto, invalidate the Certificate of Origin, if it does in fact correspond to the products submitted.
(b) In cases where there are only unsubstantial discrepancies as indicated in paragraph (a) between the exporting Party and importing Party, the products shall be released without any delay subject to administrative measures, such as imposition of customs duties at the higher applied rate or its equivalent amount of deposit. Once the discrepancies have been resolved, the correct CCFTA rate is to be applied and any overpaid duty shall be refunded, in accordance with the domestic laws, regulations and administrative rules of the importing Party.
(c) For multiple items declared under the same Certificate of Origin, a problem encountered with one of the items listed shall not affect or delay the granting of preferential treatment and customs clearance of the remaining items listed in the Certificate of Origin. Rule 17(a)(ii) of this Chapter may be applied to the problematic items.
Rule 17
(a) The Customs Authority of the importing Party may request a retroactive check at random and/or when it has reasonable doubt as to the authenticity of the document or as to the accuracy of the information regarding the true origin of the products in question or of certain parts thereof.
(i) The request shall be made in writing, accompanied by a copy of the Certificate of Origin and shall specify the reasons and any additional information suggesting that the particulars given on the said Certificate of Origin may be inaccurate, unless the retroactive check is requested on a random basis.
(ii) The Customs Authority of the importing Party may suspend the granting of preferential treatment while awaiting the result of the verification. However, it may release the products to the importer subject to any administrative measures deemed necessary, including imposition of customs duties at the higher applied trate or equivalent amount of deposit, provided that they are not held to be subject to import prohibition or restriction and there is no suspicion of fraud.
(iii) The Customs Authority or the Issuing Authority of the exporting Party receiving a request for retroactive check shall respond to the request promptly and reply not later than ninety (90) days after the receipt of the request. The Customs Authority or the Issuing Authority of the exporting Party may request, in writing, an extension of time of up to ninety (90) days as long as the extension request is made within the initial ninety (90) day period.
(b) If the Customs Authority of the importing Party is not satisfied with the outcome of the retroactive check, it may, in exceptional cases, request verification visits to the exporting Party.
(i) Prior to the conduct of a verification visit pursuant to the provisions herein, the Customs Authority of the importing Party shall notify the competent authority of the exporting Party with the aim of mutually agreeing on the conditions and means of the verification visit.
(ii) The verification visit shall be conducted not later than sixty (60) days after receipt of the notification pursuant to sub-paragraph (b)(i).
(c) The verification process, including the retroactive check and verification visit, shall be carried out and its results communicated to the Customs Authority and/or the Issuing Authority of the exporting Party within a maximum of one hundred and eighty (180) days after the receipt of the request. In the event that an extension request has been made pursuant to sub-paragraph a(iii), the verification process, including the retroactive check and verification visit, shall be carried out and its results communicated to the Customs Authority and/or the Issuing Authority of the exporting Party shall be extended from one hundred and eighty (180) days to a maximum of two hundred and seventy (270) days after the receipt of the request. While awaiting the results of the verification visit, sub-paragraph (a)(ii) on the suspension of preferential treatment shall be applied.
(d) All exchanges of information regarding the verification request should be done only through the respective contact points of the Parties.
(e) The preferential treatment may be denied when the exporting Party fails to respond to the request to the satisfaction of the Customs Authority of the importing Party in the course of a retroactive check or verification process, as the case may be, within the time frame for verification specified in paragraphs (a), (b) and (c).
(f) Each Party shall maintain the confidentiality of the information and documents provided by the other Party in the course of the verification process. Such information and documents shall not be used for other purposes, including being used as evidence in administrative and judicial proceedings, without the explicit written permission of the Party providing such information.
RECORD KEEPING REQUIREMENT
Rule 18
(a) The application for the Certificate of Origin and all documents related to such application shall be retained by the Issuing Authority for not less than three (3) years from the date of issuance.
(b) Information relating to the validity of the Certificate of Origin shall be furnished upon request by the importing Party.
(c) Any information communicated between the Parties concerned shall be treated as confidential and shall be used for the validation of the Certificate of Origin purposes only.
(d) For the purposes of the verification process/retroactive check pursuant to Rule 17 of this Section, the producer and/or exporter applying for the issuance of a Certificate of Origin shall, subject to the domestic laws, regulations and administrative rules of the exporting Party, keep the supporting records for the said application for not less than three (3) years from the date of issuance of the Certificate of Origin.
SPECIAL CASES
Rule 19
For the purpose of implementing Article 3.8 (Direct Consignment) of the Rules of Origin for the CCFTA, where transportation is effected through the territory of one or more non-Parties, the following shall be submitted to the Customs Authority of the importing Party:
(a) A through Bill of Lading issued in the exporting Party;
(b) A Certificate of Origin issued by the relevant Issuing Authorities of the exporting Party;
(c) A copy of the original commercial invoice in respect of the product; and
(d) Supporting documents evidencing that the requirements of Article 8.2(b) sub-paragraphs (i), (ii) and (iii) of the Rules of Origin for the CCFTA are being complied with.
Rule 20
(a) Products sent from an exporting Party for exhibition in the other Party and sold during or after the exhibition for importation into a Party shall benefit from the preferential treatment on the condition that the products meet the requirements of the Rules of Origin for the CCFTA provided it is shown to the satisfaction of the Customs Authority of the importing Party that:
(i) an exporter has dispatched those products from the territory of the exporting Party to the other Party where the exhibition is held and has exhibited them there;
(ii) the exporter has sold the products or transferred them to a consignee in the importing Party; and
iii) the products have been consigned during the exhibition or immediately thereafter to the importing Party in the state in which they were sent for exhibition.
(b) For purposes of implementing the above provisions, the Certificate of Origin must be submitted to the Customs Authority of the importing Party. The name and address of the exhibition must be indicated, a certificate issued by the Issuing Authority of the Party where the exhibition took place together with supporting documents prescribed in Rule 19(d) of this Section may be required.
(c) Paragraph (a) shall apply to any trade, agricultural or crafts exhibition, fair or similar show or display in shops or business premises with a view to the sale of foreign products and where the products remain under customs control during the exhibition.
Rule 21
The Customs Authority of the importing Party shall accept a Certificate of Origin in cases where the sales invoice is issued either by a company located in a third country or by an CCFTA exporter for the account of the said company, provided that the product meets the requirements of the Rules of Origin for the CCFTA. The original invoice number or the third patty invoice number shall be indicated in Box 10 of the Certificate of Origin, the exporter and consignee must be located in the Parties and the third party invoice shall be attached to the Certificate of Origin when presenting the said Certificate of Origin to the Customs Authority of the importing Party if it is required to be submitted to the Customs Authority of the importing Party.
ACTION AGAINST FRAUDULENT ACTS
Rule 22
(a) When it is suspected that fraudulent acts in connection with the Certificate of Origin have been committed, the Government authorities of the Parties concerned shall co-operate in the action to be taken in the territory of the respective Parties against the persons involved.
(b) Each Party shall be responsible for providing legal sanctions for fraudulent acts committed in relation to the Certificate of Origin in accordance with its domestic laws, regulations and administrative rules.