Collected articles in the party which can no longer perform their original nor be repaired or restored and are fit only for disposal or for the recovery of parts or raw materials;
Parts or raw materials recovered or obtained in the Party from which articles are not dangerous substances according to national and international norms and standards:
Which can no longer perform their original function without being restored or repaired; or
Collected in that Party or unfit for their originally intended to be repaired or restored and are fit only for disposal or for the recovery of parts or raw materials;
Goods produced or obtained in the party exclusively from products of previous definitions, provided that they do not constitute dangerous substances according to national and international norms and standards:
The product shall have been obtained or produced with products of that Party mentioned in previous definitions;
The products of the above definitions provided that have not been processed in another country; and
The product must not contain materials that are not considered wholly obtained in that Party;
b) The sea products extracted from marine soil or subsoil outside their territorial waters, by vessels registered with the national flag or leased by firms legally established in their territories. The fishing products and other products obtained outside the territorial sea and maritime areas where the parties exercise jurisdiction, shall be considered as wholly obtained in the states of registration of the vessel conducting such operations. The term "register" includes the registration by awarded to a country or factory ships chartered vessels registered or provided that it is in accordance with the laws of that Party;
c) Goods produced on board of factory ships from fish, crustaceans, molluscs and other aquatic invertebrates, obtained from the Sea by vessels registered or recorded with a party and flying their flag;
d) The goods produced entirely in the territories of the Parties from originating goods; and
Goods produced in the territories of the parties not incorporating materials or originating products from a transformation process that gives rise to a new identity. these new goods must comply with a change in tariff classification pursuant to this chapter or other requirements as specified in the annex.
Article 4.08. Minimal Processes or Operations
Minimal processes or operations which alone or in combination thereof, do not confer origin to goods, when used for:
To ensure the proper conservation status of the goods during transportation or storage;
Facilitating shipment or transportation;
Packaging or presenting goods for sale. Those minimal operations or processes are the following:
Aeration, ventilation, drying, chilling, freezing;
Cleaning, washing, sifting or sifting screening sorting, grading or;;
Peeling husking or desconchado boning estrujado, or who;
Removal of dust or damaged parts or damaged, implementation of oil or protective coatings, paint oxide;
Testing or division; calibration of bulk shipments; grouping in packages; accession of marks or labels, products or distinguishing signs on their packaging;
Packaging, repackaging or unpacking;
Dilution with water or in any other aqueous solution; ionization and salting;
Armed or simple assembly of parts of products to constitute a complete product; and
The slaughter of animals.
Minimal operations or processes referred to above shall not be taken into account when determining whether a product has been obtained entirely in one or more of the Parties.
A minimum process or a combination of them shall not preclude to confer originto any goods if there is a sufficient transformation as a result of other operations or processes.
Article 4.09. Indirect Goods
Indirect goods shall be considered as originating in the region regardless of their development or production. book value registered may be used in the calculation of value.
Article 4.10. Cumulation
For the implementation of the requirements of origin, the materials and products originating in the territory of any of the Parties, incorporated into a good in the territory of the other party shall be considered as originating in the territory of the latter.
Article 4.11. Regional Value Content
The regional value content of the goods shall be calculated on the basis of the transaction value method, which shall apply to the following formula: VCR=[(VT-VMN)/VT]*100
Where:
VCR = regional value content, expressed as a percentage.
VT = the transaction value of the good adjusted on the basis of FOB
VMN = non-originating goods value of the Parties used in the production of the good.
It is obtained from subtract the transaction value of the good or the value of the non-originating goods used in the region in the development or production, and shall be divided between the transaction value of the same; all of which is multiplied by 100.
When the producer of a good exported not directly, the transaction value shall be adjusted to the point at which the buyer receives the good within the territory where the producer is located.
When the origin is determined by the regional value content of the required percentage specified in annex corresponding to the specific rules of origin.
All costs considered for the calculation of regional value content shall be recorded and maintained in accordance with generally accepted accounting principles applicable in the territory of the Party where the good is produced.
Article 4.12. De Minimis
A good that does not satisfy a change in tariff classification as set out in the annex of this chapter shall be considered originating if the value of all the materials or not originating products used in production does not exceed the following percentages:
10 per cent in the year 2000;
7 percent in year 2001 onwards.
In the case of goods classified in Chapters 50 to 63 of the SAC or NAD percentages shall relate to the weight of fibers and yarns with respect to the weight of the material produced.
Article 4.13. Fungible Goods ( Interchangeable )
Where in the development or production of goods using fungible or iterchangaeble goods, originating and non originating of the Parties, even when mixed or combined and exported, the origin of these goods may be determined by the application of any of the following three inventory management methods, at the choice of the producer.
Method of first entrance, first out (PEPS): method by which the origin of fungible goods first received in the inventory is considered to be the origin of an equal number of units of the first fungible goods that are withdrawn from the inventory.
Method of last entrance, first out (UEPs): method by which the origin of fungible goods received in the last inventory is considered to be the origin of an equal number of units of the first fungible goods that are withdrawn from the inventory.
Average method means the method by which the origin of fungible goods withdrawn from the inventory is based on the percentage of goods and non-originating originating in the existing inventory.
The average non-originating goods shall be determined using the following formula:
PMNO = VTMFNO*100 VTMFOYNO*
Where:
PMNO = average of non-originating goods.
VTMFNO = total value of fungible or non-originating fungible goods forming part of the inventory prior to departure.
VTMFOYNO = total value of fungible goods or interchangeable originating and non-originating forming part of the inventory prior the departure.
Selected once one of the inventory management methods, it shall be used throughout the fiscal period.
Article 4.14. Sets or Assortment
It is applied to goods that are classified in accordance with the general rule 3 for the interpretation of the SAC or NAD and may qualify as originating, provided that each of the goods in the set or assortment complies with the established rules of origin in this chapter and annex.
"de minimis" rule may apply to the games or sets.
Article 4.15. Blending
They shall be originating goods as set out in this chapter, the goods in accordance with the SAC or NAD, or incorporated in the production process or production, spare parts and not originating because:
In accordance with rule for 2 to the interpretation of the SAC or NAD, non assembling goods are classified as an assembled good in the same heading or subheading; or
The goods and their parts are classified in the same heading and subheading or;
The Assembly also confers originating when it incorporates unit components that are classified in a heading other than that of the product.
Article 4.16. Accessories, Spare Parts and Tools
Spare parts and accessories, tools delivered with the good as a normal part thereof shall not be taken into account in determining whether all the non-originating materials or products used in the production of a good satisfy the applicable change in tariff classification established in this chapter and its annex, provided that:
Accessories, spare parts and tools are not invoiced separately from the good regardless of whether they are disaggregated or detail each in the invoice; and
The quantity and value of the accessories, spare parts and tools are customary for the good clasificante.
Accessories, spare parts and tools that do not meet the conditions mentioned above shall apply the rule of origin for each of them separately.
Article 4.17. Containers and Packaging Products for Retail Sale
Packaging products and packaging presented together with the goods for retail sale and classified by containing the goods, shall not be taken into account for determining the origin of the goods traded.
Article 4.18. Containers, Products and Packing Materials for Shipment
Containers, products and packing materials for shipment of a good shall not be taken into account for determining the origin of the goods traded, when they are routinely used.
Article 4.19. Transhipment and Direct Consignment or International Transit
Originating goods do not lose that status when are exported from one party to the other party and their transport pass through the territory of any other party or of a non- Party provided that they comply with the following requirements:
The transit is justified by reasons or by geographical considerations related to international transport requirements;
It is not intended to use or trade, employment or transit countries, whether or not party; and
During transport and storage is processed or not undergo operations other than packaging, handling, packaging, reempaque manipulation or to ensure the conservation.
Otherwise, such goods shall lose their status as originating.
Article 4.20. Certification and Declaration of Origin
The Parties shall use the format of certificate of origin, which shall prepare technical comittee on rules of origin and shall enter into force within thirty (30) days after the date of entry into force of this Treaty.
The certificate of origin shall include certification and declaration of origin.
Article 4.21. Certificate of Origin and Declaration
To verify that a good qualifies as an originating in one of the Parties, the exporter shall deliver the certification of origin. This certificate must bear the name, signature and seal from the issuing and shall be endorsed by the competent authority designated by each party.
Where the exporter is not the producer of the goods, the first may request a declaration of origin in order to issue the applicable certification. Where the exporter is not the producer of such goods shall require the declaration of origin.
An exporter who has issued a certificate of origin is correct and incorrect shall notify in writing prior to the importation, to persons who has re-delivered such certification, as well as to the competent authority of the importing Party, in which case it shall not be penalized.
Any corrections to the certificate of origin shall be requested in writing to the competent authority and shall, where appropriate, the issuer of that document.
Article 4.22. Exports Under the Certificate of Origin
The certificate of origin may cover:
A single export of goods, or one or more
A number of exports of identical or similar goods, for a period not exceeding one year, to the same importer.
In both cases, during the validity of the certificate, for subsequent exports to the first, a photocopy of the original or copy.
Article 4.23. Accounting Records and other Documents
The exporter certifying the origin of the goods, must retain for a minimum period of five (5) years after the certification of all the records and documents relating to the origin of the goods.
Article 4.24. Direct Consignment
Where exported goods originating from one party to the other party and their transport pass through the territory of the other parties, without being processed; the certificate of origin shall be issued by the exporter.
Article 4.25. The Re-exportation
When a product originating in a Party is being imported into the territory of the other party and that are exported to the other party, the certificate of origin shall be endorsed by the competent governmental entity of the importing country, indicating that the good has not been processed and attaching a copy of the certificate of the country of origin.
Article 4.26. No Requirement for Certificate of Origin
Shall not require a certificate of origin in the following cases:
For purposes of commercial imports goods whose customs value does not exceed the equivalent in national currency to one thousand United States dollars (US $1,000.00). In this case the commercial invoice indicating that the good qualifies as originating;
Non-commercial imports of goods whose customs value does not exceed the equivalent in national currency to one thousand United States dollars (US $1,000.00).
Exceptions above shall not apply where an importation has been divided into two or more shipments.
Article 4.27. Omission or Anomalies In the Certificate of Origin
Where the exporter does not present the certificate or certifies incorrectly the origin of certain goods, the importing Party shall not deny the importation. However, the competent authority shall require a security in an amount equivalent to the amount of taxes, which may be returned within the time period established by the legislation of each Party, upon presentation of the certificate of origin.
Article 4.28. False or Unsupported Declarations
Where the exporter has certified in a false or unfounded way that qualifies the good as originating, the competent authority of the importing Party shall as non-originating goods until the exporter proves that complies with the provisions under this chapter.
Each party commits to impose criminal, civil or administrative sanctions according to its national law.
Article 4.29. Cooperation between Competent Authorities
The competent authority of the importing Party may request the exporter to its counterpart all the necessary technical cooperation, and it will do it promptly.
Article 4.30. Confidentiality
The competent authority of each Party shall maintain the confidentiality of the information collected in the process of verification of origin
Article 4.31. Means of Verification
For the verification of origin of a good shall be taken into account, inter alia, the following:
The official statistical information provided by each Party;
Questionnaires, forms and letters of request for information to importers, exporters or producers or other; and
Visits to the premises of the exporter or producer to review the records and documents referred to in article 4.23 and inspect the facilities and materials or products that are used in the production of the goods.
Article 4.32. Forms of Notification
In case of denial or acceptance of the application, the competent authority of the importing party within a period not exceeding five (5) days of the issuance of the respective decision shall notify the interested parties when it is appropriate and to the competent authority of the exporting Party.
Article 4.33. Guarantee of Payment
Where there is doubt as to the origin of a good at the time of importation, the customs authority shall not preclude the entry to the same but shall request to the competent authority of the initiation of the investigation process, pursuant to article 4.34.
When the competent authority of the importing Party shall notify the customs authority that there is a process of verification of origin on goods, it shall not prevent the placement of identical goods sent by the exporter subject to investigation, but a guarantee shall be required to support the payment of taxes.
Article 4.34. Request for Verification
Where there is doubt on the origin of goods from the territory of one of the Parties, any natural or legal person having proved legal interest thereon, may submit the request for verification corresponding to the competent authority of the country, providing expertise, documents and other evidence to substantiate the application. Verification, may also be initiated when they have the necessary facts.
Article 4.35. Admission or Rejection of the Application
1. The competent authority shall deliver the resolution of admission or rejection of the request within ten (10) days. That decision shall contain the evidence that exist.
2. If an application is rejected or the competent authority has not taken a decision within the specified period, the goods shall be considered as originating in the exporting country.
Article 4.36. Notification
In making the notifications referred to in this instrument, the competent authorities of the Parties may use any communication system provided that ensures the receipt.
Once notified the resolution of admission to the competent authority of the exporting Party shall, within ten (10) days, notify the exporter or the producer of the initiation of the procedure to verify the origin of the goods.
With the notification of acceptance shall be sent questionnaires, forms and letters of request for information.
Article 4.37. Probationary Period
When the stakeholders are notified they have up to twenty (20) days for the submission of their arguments and evidence before the competent authority. Upon receipt of these documents, the competent authority of the exporting party within a period not exceeding five (5) days shall be forwarded to the competent authority of the importing Party.
Within or outside the probationary period, the competent authority of the importing Party may use any means of verification stipulated in article 4.3.1.
Article 4.38. Non-compliance with the Submission of Evidence and Arguments
When the exporter or producer does not speak within twenty (20) days referred to in article 4.37, the competent authority of the importing Party shall within five (5) days, that the goods covered by the licence is not originating, in this case, within five (5) days, notify the institution concerned and the corresponding to the cancellation of taxes.
Article 4.39. Notification of the Visit
Prior to conducting a verification visit, the competent authority of the importing Party shall notify the competent authority of the exporting party of its intention to conduct the same who, within five (5) days of receipt of the notification shall notify the exporter or producer, as the case may be.
From the date of notification and until it is entered into the record of the verification visit the probationary period referred to in article 4.37, shall be interrupted, resume the diligence.
The exporter or producer who receives a notification to conduct a visit shall appear thereon within a maximum period of ten (10) days from the date on which the notification is received.
Article 4.40. Requirements of the Notification of the Visit
The notification referred to in article 4.39 shall contain at least the following information:
The identification of the relevant authority issuing the notification;
The name of the exporter or producer to be visited;
The date and place of the visit;
The object and scope of the verification visit, including specific reference to the goods subject to verification and the specific rule of origin referred to in the certificate of origin;
The names and titles of the officials who will conduct the visit; and